This bill proposes the establishment of a five-year data encryption and cybersecurity pilot program, which aims to enhance the protection of information technology data against unauthorized access. The program will be implemented by the department of administration, with specific tasks assigned to various state entities over the fiscal years 2026-2030. Key features of the program include stringent criteria for the encryption system, such as accessibility of source code, ownership by the state, and compliance with U.S. security standards. The auditor general will conduct audits throughout the implementation and operation phases, ensuring adherence to security protocols.

Additionally, the bill mandates the department of administration to provide annual reports to the legislature regarding the implementation status and security assessments of the encryption system, culminating in a final report in fiscal year 2030-2031. The bill also includes a provision for the appropriation of funds from the state general fund for the program's planning, purchasing, and implementation phases across the specified fiscal years. The section establishing this program will be repealed after June 30, 2032.