A new bill introduced by Sen. Bob Hertzberg, D-Van Nuys, aims to protect computer systems by criminalizing the practice of hijacking networks and holding them hostage until a ransom is paid. Under the legislation, criminals convicted of this crime could be charged with a felony and serve up to four years in prison. Hertzberg’s legislation was proposed after a Feb. 5 cyberattack against Hollywood Presbyterian Medical Center, in which the hospital paid a $17,000 ransom in bitcoins to hackers who took control of its computer systems. Authorities and cybersecurity companies have seen an increase in cases where so-called ransomware, usually a software virus, is planted in a system. The virus interferes with functionality or can destroy data, and hackers use it to coerce businesses or public institutions into paying to protect personal data and end the attack. Many businesses feel cornered in these circumstances and ultimately pay the ransom. Hertzberg wants specific legislation to deter this criminal activity. “Basically what we are trying to do is to protect computer users by outlawing the practice and making it the criminal equivalent to extortion,” Hertzberg told the Business Journal. In the current law, there is a lack of clarity, according to the lawmaker. There are two separate concepts – extortion and computer contamination, which includes compromised information, viruses and malware. He said ransomware is different than contaminating a computer and the law does not give prosecutors the appropriate legal recourse to properly convict criminals guilty of using ransomware. “This is a big issue and companies are not incentivized to talk about it,” he said. “Hospitals don’t want to talk about the potential risks to patients. It’s a very delicate thing, and it’s a new kind of crime we have to be thoughtful and aggressive about.” Hearings for the bill are scheduled for this month, and Hertzberg anticipates it to be on the governor’s desk, ready for approval by September. “This is the first in many steps we will be taking in California to strengthen the law,” he said. Union Contract Disagreement A judge from the National Labor Relations Board recently ruled that hospital owner and operator Prime Healthcare Services in Ontario must adhere to a union contract agreement, which it has refused to carry out since November 2014. The contract affects 1,100 Prime employees at three Southern California hospitals, including Encino Hospital Medical Center. According to the Feb. 18 ruling, Prime had entered into the agreement with the union SEIU-United Healthcare Workers West and then did not honor the contract. Prime’s claims were described as “vague, evasive, confusing and inconsistent” in the ruling. “We wanted the contract renewed in the space that it was,” said Kenton Smartt, a technician at Encino Hospital and a member of the contract bargaining team for the union. “Prime wanted to underbid for every offer we made. They would make ridiculous offers that were insulting.” According to Smartt, Prime and the union finally came to an agreement but Prime had ulterior motives. The hospital system was on the verge of buying the Daughters of Charity hospital system and wanted the union’s approval for its proposed acquisition. However, once the union opposed the deal, Prime decided not to abide by the contract, Smartt said. “Prime Healthcare disagrees with the ruling of the administrative law judge and will appeal the decision to the National Labor Relations Board in Washington, D.C.,” said Elizabeth Nikels, vice president of marketing and communications for Prime. “Despite the union rhetoric, Prime Healthcare has a history of respecting all its employees and providing its hospital workers with the resources they need to provide award-winning care and service. In this case, our negotiations with SEIU-UHW never culminated in an agreement between the parties. In fact, the evidence before the administrative law judge included an email from the union’s chief negotiator stating that the parties never finalized the agreement. Prime Healthcare is confident that it will prevail on appeal.” Prime has 21 days from the ruling to comply with the contract. Staff Reporter Stephanie Henkel can be reached at (818) 316-3130 or [email protected].
