Illinois 2025-2026 Regular Session

Illinois House Bill HB3576 Latest Draft

Bill / Introduced Version Filed 02/07/2025

                            104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB3576 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED: 220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101220 ILCS 5/4-102 new Amends the Public Utilities Act. Provides that, within 120 days after the effective date of the amendatory provisions, each water purveyor shall develop a cybersecurity program that defines and implements organizational accountabilities and responsibilities for cyber risk management activities, and establishes policies, plans, processes, and procedures for identifying and mitigating cyber risk to its public community water system. Provides that, within certain time periods after the effective date of the amendatory provisions, a water purveyor shall create a cybersecurity incident reporting process; obtain a cybersecurity insurance policy that meets certain standards; reasonably conform to the most recent version of one or more of specified industry-recognized cybersecurity frameworks; submit a compliance report; submit an incident report; and submit an annual status report. Sets forth provisions concerning violations of the amendatory provisions and rulemaking abilities of the Department of Natural Resources and the Illinois Commerce Commission. Makes other changes. LRB104 08875 AAS 18930 b   A BILL FOR 104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB3576 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED:  220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101220 ILCS 5/4-102 new 220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101 220 ILCS 5/4-102 new  Amends the Public Utilities Act. Provides that, within 120 days after the effective date of the amendatory provisions, each water purveyor shall develop a cybersecurity program that defines and implements organizational accountabilities and responsibilities for cyber risk management activities, and establishes policies, plans, processes, and procedures for identifying and mitigating cyber risk to its public community water system. Provides that, within certain time periods after the effective date of the amendatory provisions, a water purveyor shall create a cybersecurity incident reporting process; obtain a cybersecurity insurance policy that meets certain standards; reasonably conform to the most recent version of one or more of specified industry-recognized cybersecurity frameworks; submit a compliance report; submit an incident report; and submit an annual status report. Sets forth provisions concerning violations of the amendatory provisions and rulemaking abilities of the Department of Natural Resources and the Illinois Commerce Commission. Makes other changes.  LRB104 08875 AAS 18930 b     LRB104 08875 AAS 18930 b   A BILL FOR
104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB3576 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED:
220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101220 ILCS 5/4-102 new 220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101 220 ILCS 5/4-102 new
220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101
220 ILCS 5/4-102 new
Amends the Public Utilities Act. Provides that, within 120 days after the effective date of the amendatory provisions, each water purveyor shall develop a cybersecurity program that defines and implements organizational accountabilities and responsibilities for cyber risk management activities, and establishes policies, plans, processes, and procedures for identifying and mitigating cyber risk to its public community water system. Provides that, within certain time periods after the effective date of the amendatory provisions, a water purveyor shall create a cybersecurity incident reporting process; obtain a cybersecurity insurance policy that meets certain standards; reasonably conform to the most recent version of one or more of specified industry-recognized cybersecurity frameworks; submit a compliance report; submit an incident report; and submit an annual status report. Sets forth provisions concerning violations of the amendatory provisions and rulemaking abilities of the Department of Natural Resources and the Illinois Commerce Commission. Makes other changes.
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A BILL FOR
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1  AN ACT concerning regulation.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Public Utilities Act is amended by changing
5  Section 4-101 and by adding Section 4-102 as follows:
6  (220 ILCS 5/4-101) (from Ch. 111 2/3, par. 4-101)
7  Sec. 4-101. The Commerce Commission shall have general
8  supervision of all public utilities, except as otherwise
9  provided in this Act, shall inquire into the management of the
10  business thereof and shall keep itself informed as to the
11  manner and method in which the business is conducted. It shall
12  examine those public utilities and keep informed as to their
13  general condition, their franchises, capitalization, rates and
14  other charges, and the manner in which their plants, equipment
15  and other property owned, leased, controlled or operated are
16  managed, conducted and operated, not only with respect to the
17  adequacy, security and accommodation afforded by their service
18  but also with respect to their compliance with this Act and any
19  other law, with the orders of the Commission and with the
20  charter and franchise requirements.
21  Whenever the Commission is authorized or required by law
22  to consider some aspect of criminal history record information
23  for the purpose of carrying out its statutory powers and

 

104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB3576 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED:
220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101220 ILCS 5/4-102 new 220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101 220 ILCS 5/4-102 new
220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101
220 ILCS 5/4-102 new
Amends the Public Utilities Act. Provides that, within 120 days after the effective date of the amendatory provisions, each water purveyor shall develop a cybersecurity program that defines and implements organizational accountabilities and responsibilities for cyber risk management activities, and establishes policies, plans, processes, and procedures for identifying and mitigating cyber risk to its public community water system. Provides that, within certain time periods after the effective date of the amendatory provisions, a water purveyor shall create a cybersecurity incident reporting process; obtain a cybersecurity insurance policy that meets certain standards; reasonably conform to the most recent version of one or more of specified industry-recognized cybersecurity frameworks; submit a compliance report; submit an incident report; and submit an annual status report. Sets forth provisions concerning violations of the amendatory provisions and rulemaking abilities of the Department of Natural Resources and the Illinois Commerce Commission. Makes other changes.
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A BILL FOR

 

 

220 ILCS 5/4-101 from Ch. 111 2/3, par. 4-101
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1  responsibilities, then, upon request and payment of fees in
2  conformance with the requirements of Section 2605-400 of the
3  Illinois State Police Law, the Illinois State Police is
4  authorized to furnish, pursuant to positive identification,
5  such information contained in State files as is necessary to
6  fulfill the request.
7  The Commission shall require all public utilities to
8  establish a security policy that includes on-site safeguards
9  to restrict physical or electronic access to critical
10  infrastructure and computerized control and data systems. The
11  Commission shall maintain a record of and each regulated
12  entity shall provide to the Commission an annual affidavit
13  signed by a representative of the regulated entity that
14  states:
15  (1) that the entity has a security policy in place;
16  (2) that the entity has conducted at least one
17  practice exercise based on the security policy within the
18  12 months immediately preceding the date of the affidavit;
19  and
20  (3) with respect to any entity that is an electric
21  public utility, that the entity follows, at a minimum, the
22  most current security standards set forth by the North
23  American Electric Reliability Council.
24  A water public utility's security policy shall also meet
25  the requirements set forth in Section 4-102.
26  (Source: P.A. 102-538, eff. 8-20-21.)

 

 

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1  (220 ILCS 5/4-102 new)
2  Sec. 4-102. Cybersecurity policy for water purveyors.
3  (a) As used in this Section:
4  "Cybersecurity incident" means an event occurring on or
5  conducted through a computer network that jeopardizes the
6  integrity, confidentiality, or availability of computers,
7  information systems, communications systems, networks,
8  physical or virtual infrastructure controlled by computers or
9  information systems, or information residing on such computers
10  or information systems.
11  "Cybersecurity insurance policy" means an insurance policy
12  designed to mitigate losses from cybersecurity incidents,
13  including, but not limited to, data breaches, business
14  interruption, and network damage.
15  "Department" means the Department of Natural Resources.
16  "Industrial control system" means an information system
17  used to control industrial processes such as manufacturing,
18  product handling, production, or distribution.
19  "Industrial control system" includes supervisory control
20  and data acquisition systems used to control geographically
21  dispersed assets, and distributed control systems and smaller
22  control systems using programmable logic controllers to
23  control localized processes.
24  "Information resource" means information and related
25  resources, such as personnel, equipment, funds, and

 

 

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1  information technology.
2  "Information system" means a discrete set of information
3  resources organized for the collection, processing,
4  maintenance, use, sharing, dissemination, or disposition of
5  information.
6  "Public community water system" means a public water
7  system which serves at least 15 service connections used by
8  year-round residents or regularly serves at least 25
9  year-round residents.
10  "Public water system" means a system for the provision to
11  the public of water for human consumption through pipes or
12  other constructed conveyances, if such system has at least 15
13  service connections or regularly serves an average of at least
14  25 individuals daily at least 60 days out of the year. "Public
15  water system" includes (i) any collection, treatment, storage
16  and distribution facilities under control of the operator of
17  such system and used primarily in connection with such system,
18  and (ii) any collection or pre-treatment storage facilities
19  not under such control which are used primarily in connection
20  with such system.
21  "Water purveyor" means any person that owns a public
22  community water system with more than 500 service connections.
23  (b) Within 120 days after the effective date of this
24  amendatory Act of the 104th General Assembly, each water
25  purveyor shall develop a cybersecurity program that defines
26  and implements organizational accountabilities and

 

 

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1  responsibilities for cyber risk management activities, and
2  establishes policies, plans, processes, and procedures for
3  identifying and mitigating cyber risk to the water purveyor's
4  public community water system. As part of the cybersecurity
5  program, a water purveyor shall do the following:
6  (1) identify the individual directly responsible for
7  ensuring that the policies, plans, processes, and
8  procedures established pursuant to this Section are
9  executed in a timely manner;
10  (2) conduct risk assessments and implement appropriate
11  controls to mitigate identified risks to the public
12  community water system;
13  (3) maintain situational awareness of cyber threats
14  and vulnerabilities to the public community water system;
15  and
16  (4) create and exercise incident response and recovery
17  plans.
18  A water purveyor shall submit a copy of the cybersecurity
19  program developed pursuant to this subsection (b) to the
20  Commission in a form and manner as determined by the
21  Commission.
22  (c) Within 60 days after developing the cybersecurity
23  program required pursuant to subsection (b) of this Section,
24  each water purveyor shall create a cybersecurity incident
25  reporting process.
26  (d) No later than 180 days after the effective date of this

 

 

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1  amendatory Act of the 104th General Assembly, each water
2  purveyor shall obtain a cybersecurity insurance policy that
3  meets any applicable standards adopted by the Commission.
4  (e) No later than 180 days after the effective date of this
5  amendatory Act of the 104th General Assembly, each water
6  purveyor shall update its cybersecurity program developed
7  pursuant to this Section to apply to all of the public
8  community water system's industrial control systems and to
9  reasonably conform to the most recent version of one or more of
10  the following industry-recognized cybersecurity frameworks:
11  (1) the Framework for Improving Critical
12  Infrastructure Cybersecurity developed by the National
13  Institute of Standards and Technology;
14  (2) the Center for Internet Security Critical Security
15  Controls for Effective Cyber Defense; or
16  (3) the International Organization for Standardization
17  and International Electrotechnical Commission 27000 family
18  of standards for an information security management
19  system.
20  Whenever a final revision to one or more of the frameworks
21  listed in this subsection (e) is published, a water purveyor
22  whose cybersecurity program conformed to that framework shall
23  revise its cybersecurity program to reasonably conform to the
24  revised framework, and submit a copy of the revised
25  cybersecurity program to the Commission, no later than 180
26  days after publication of the revised framework.

 

 

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1  (f) No later than one year after the effective date of this
2  amendatory Act of the 104th General Assembly, and each year
3  thereafter, each water purveyor shall submit to the Department
4  and the Commission a certification demonstrating that the
5  water purveyor is in compliance with the requirements of this
6  Section. The certification shall be made in a form and manner
7  as determined by the Department, in consultation with the
8  Commission. The certification shall be signed by a senior
9  executive responsible for security of the regulated entity.
10  (g) The Commission shall cause to be audited any public
11  community water system that fails to submit a cybersecurity
12  program, a revision, or a certification pursuant to this
13  Section. Any audit shall be conducted by a qualified and
14  independent cybersecurity company, at the water purveyor's
15  expense. Following the audit, the water purveyor shall submit
16  the audit and any corrective action plans derived from the
17  audit to the Commission.
18  (h) A water purveyor shall, upon the request of the
19  Department or the Commission, provide proof of compliance with
20  the requirements of this Section, in a form and manner as
21  determined by the Department or by the Commission.
22  (i) On and after 90 days after the effective date of this
23  amendatory Act of the 104th General Assembly, a water purveyor
24  shall inform the Commission, in a written or oral report,
25  within 48 hours or as soon as practicable after the discovery
26  or occurrence of any notable, unusual, or significant

 

 

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1  cybersecurity incident or any cybersecurity incident that must
2  be reported to another regulatory agency, including the
3  following:
4  (1) any cybersecurity incident that results in the
5  compromise of the confidentiality, integrity,
6  availability, or privacy of the water purveyor's utility
7  billing, communications, data management, or business
8  information systems, or the information on such systems;
9  and
10  (2) any cybersecurity incident against the water
11  purveyor's industrial control systems, including
12  monitoring, operations, and centralized control systems,
13  that adversely impacts, disables, or manipulates
14  infrastructure, resulting in loss of service,
15  contamination of finished water, or damage to
16  infrastructure.
17  (j) No later than 30 days after receiving a report of a
18  cybersecurity incident from a water purveyor pursuant to
19  subsection (i), the Commission shall cause to be audited the
20  water purveyor's cybersecurity program and any actions the
21  water purveyor took in response to the cybersecurity incident.
22  The audit shall identify cyber threats and vulnerabilities to
23  the public community water system, weaknesses in the public
24  community water system's cybersecurity program, and strategies
25  to address those weaknesses so as to protect the public
26  community water system from the threat of future cybersecurity

 

 

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1  incidents. Any audit shall be conducted by a qualified and
2  independent cybersecurity company at the water purveyor's
3  expense. After the completion of the audit, the water purveyor
4  shall submit the audit and any corrective action plans derived
5  from the audit to the Commission.
6  (k) By July 31 of each year, a water purveyor shall provide
7  to the Commission a report that identifies the following:
8  (1) an overview of the water purveyor's approach to
9  cybersecurity awareness and protection;
10  (2) a description of cybersecurity awareness training
11  efforts for the water purveyor's staff members,
12  specialized cybersecurity training for cybersecurity
13  personnel, and participation by the water purveyor's
14  cybersecurity staff in emergency preparedness exercises in
15  the previous calendar year;
16  (3) an organizational diagram of the water purveyor's
17  cybersecurity organization, including positions and
18  contact information for primary and secondary
19  cybersecurity emergency contacts;
20  (4) a description of the water purveyor's internal and
21  external communications plan regarding unauthorized
22  actions that result in interruption, degradation of
23  service, financial harm, or breach of sensitive business
24  or customer data, including the water purveyor's plan for
25  notifying the Commission and customers;
26  (5) a redacted summary of any unauthorized actions

 

 

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1  that resulted in material interruption, financial harm, or
2  breach of sensitive business or customer data, including
3  the parties that were notified of the unauthorized action
4  and any remedial actions undertaken;
5  (6) key performance indicators and other metrics
6  related to physical security and cybersecurity;
7  (7) any notable cybersecurity information not included
8  in paragraphs (1) through (6); and
9  (8) any other information as directed by the
10  Commission.
11  (l) The Department or the Commission shall create a
12  centralized portal allowing for electronic submittal of the
13  report required under this Section. The lack of a centralized
14  portal pursuant to this subsection (l) shall not negate the
15  requirement for a water purveyor to submit a report.
16  (m) Any person who violates the provisions of this
17  Section, or any rule or regulation adopted pursuant thereto,
18  shall be subject to the penalties and other remedies set forth
19  in Sections 4-202 and Section 4-203. No later than 18 months
20  after the effective date of this amendatory Act of the 104th
21  General Assembly, the Department shall adopt a schedule of
22  civil administrative penalties for specific violations of this
23  Section.
24  (n) Reports and other submissions made under this Section
25  shall not be open to public inspection unless otherwise
26  ordered by the Commission. Regulated entities shall not report

 

 

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