BILL ANALYSIS


                                                     C.S.H.B. 960
                                               By: Puente (Madla)
                                     Intergovernmental Relations 
                                                         05-17-95
                            Senate Committee Report (Substituted)
BACKGROUND

Under current law, counties may not sell or market the software
they either develop themselves or contract a private entity to
develop for them.  Cities have been given the right to sell or
market the software they develop.  This enables cities to enjoy a
return from the often large investment needed for the development
of software.  Currently, software developed by a county may be
obtained as public information.  This discourages counties from
making the necessary investment to develop useful software.

PURPOSE

As proposed, C.S.H.B. 960 authorizes counties to sell county-developed computer software.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 270, Local Government Code, by adding
Section 270.007, as follows:

     Sec. 270.007.  SALE OF COMPUTER SOFTWARE.  (a)  Authorizes a
     county to sell or license a computer software application or
     software system developed by the county for use by the county. 
     Authorizes a county to sell or license a computer software
     application or software system developed for the county by a
     person under contract unless the contract specifically
     prohibits the county from selling or licensing the application
     or system.
     
     (b)  Authorizes the county to exclusively contract with a
       person to market the application or system, notwithstanding
       the provisions of Subsections (f) and (g).  Requires a
       contract under this subsection to be awarded only in
       compliance with Section 262.030, Local Government Code,
       concerning the Alternative Competitive Procedure for
       Insurance or High Technology Items.
       
       (c)  Provides that the provisions of the open records law,
       Chapter 552, Government Code, governing the cost of making
       copies of public records do not apply to a software product
       or system subject to this section.
       
       (d)  Defines "computer software product or system."
       
       (e)  Provides that the provisions of this section apply only
       to the sale or licensure of a software application or
       software system by a county; or a request under Chapter 552,
       Government Code, for a computer software application or
       software system itself; and do not apply to the cost of
       production for public inspection or copying of information
       collected, assembled, or maintained through the use of such
       software, which cost shall be governed by Chapter 552F,
       Government Code, without regard to the cost of developing
       the software.  Provides that nothing in this section shall
       preclude header or record information, necessary for
       conversion and interpretation of electronic images, being
       made available for electronic images of public records.
       
       (f)  Requires a county to sell or license software under
       this section for a price negotiated between the county and
       the person, not to exceed the developmental cost to the
       county, except as provided by Subsection (b), upon request
       of any person.  Requires a developmental cost to only
       include costs incurred under a contract to procure the
       software or direct employee costs incurred to develop the
       software.  Provides that this subsection does not apply to
       any county software that protects county computer systems
       from unauthorized use or access.
       
       (g)  Requires a county to sell or license software under
       Subsection (f) to any person for the same consideration that
       the county has sold or licensed the software to another
       person, except as provided by Subsection (b).
       
       (h)  Prohibits the provisions of this section from
       authorizing the development by a county of any software
       application or software system not otherwise authorized by
       law.
       
       (i)  Prohibits a county from developing a computer
       application or software system for the purpose of selling,
       licensing, or marketing the software application or software
       system.
       
       SECTION 2.   Emergency clause.
           Effective date: upon passage.