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.