LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 273 SLS 20RS 405
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 29, 2020 10:50 AM Author: HEWITT
Dept./Agy.: Secretary of State and LA Cybersecurity Commission
Subject: Registration of Managed /Managed Security Service Providers Analyst: Patrice Thomas
INFORMATION TECHNOLOGY EN +$48,000 GF EX See Note Page 1 of 1
Provides for registration with secretary of state by managed service providers servicing public bodies. (See Act)
Proposed law requires Managed Service Providers and Managed Security Service Providers providing managed service
services to any public body in LA to register with the Secretary of State beginning February 1, 2021, and renew the
registration every 2 years. Proposed law defines Managed Service Providers and Managed Security Service Providers and
provides that public bodies cannot enter into a contract with a Managed Service Provider or Managed Security Service
Provider that is not registered, failed to renew, or is not in good standing. Proposed law outlines the information required on
the registration application with the Secretary of State as well as requires Managed Service Providers or Managed Security
Service Providers to file a notice of any material change to the registration information. Included in any public contract,
proposed law requires Managed Service Provders or Managed Security Service Providers to notify to the LA Fusion Center of
any cyber incident impacting a public body within 24 hours of discovery and payment of cyber ransom or ransomware
involving the named public body within 10 days of payment; notices shall become public record after 60 days of submission.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $48,000 $0 $0 $0 $0 $48,000
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $48,000 $0 $0 $0 $0 $48,000
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law will result in a one-time implementation cost for the secretary of state of approximately $48,000. Proposed
law requires managed service providers to register with the Secretary of State beginning February 1, 2021, and every two
years following as well as to provide notification of any material change in registration information. Proposed law requires a
managed service provider to send notice any cyber incident impacting a public body or payment of cyber ransom to the LA
Fusion Center, which is exempt from public record for 60 days.
The Secretary of State reports that implementing proposed law requires one-time expenditures of $48,000 SGF (480 hours x
$100) due to IT programming changes to maintain the prescribed registry.
REVENUE EXPLANATION
Proposed law will result in an indeterminable increase in self-generated revenues within the Secretary of State. Proposed
law requires managed service providers to register with the Secretary of State. The LFO cannot determine how many
managed service providers will register. Although proposed law is silent with regard to the Secretary of State imposing a
registration fee, the LFO assumes managed service providers will be subject to existing commercial filing fees.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
SB273 Original:
SB273 Engrossed: 44:1(B)(35)