By Kubiak                                       H.B. No. 3434

      75R3490 JRD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to governmental use of information resources, including

 1-3     the powers and duties of the Department of Information Resources.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 2054.051, Government Code, is amended by

 1-6     adding Subsection (f) to read as follows:

 1-7           (f)  The department shall develop guidelines for state

 1-8     agencies to follow when deciding whether to lease or to purchase

 1-9     information resources technologies.

1-10           SECTION 2.  Subchapter C, Chapter 2054, Government Code, is

1-11     amended by adding Section 2054.060 to read as follows:

1-12           Sec. 2054.060.  DEPARTMENT APPROVAL OF CERTAIN PURCHASES.

1-13     Notwithstanding other law, a state agency may not spend

1-14     appropriated money to purchase information resources or to purchase

1-15     maintenance services for information resources unless the

1-16     department has approved the purchase.

1-17           SECTION 3.  Section 2054.075, Government Code, is amended to

1-18     read as follows:

1-19           Sec. 2054.075.  COOPERATION WITH INFORMATION RESOURCES

1-20     MANAGER.  (a)  Each state agency shall cooperate as necessary with

1-21     its information resources manager to enable that individual to

1-22     perform the manager's duties.

1-23           (b)  Each state agency shall provide that its information

1-24     resources manager is part of the agency's executive management and

 2-1     reports directly to a person with a title functionally equivalent

 2-2     to executive director or deputy executive director. Each state

 2-3     agency shall report to the department the extent and results of its

 2-4     compliance with this subsection, and the department shall report

 2-5     the extent and results of state agencies' compliance to the

 2-6     legislature.

 2-7           SECTION 4.  Section 2054.076, Government Code, is amended to

 2-8     read as follows:

 2-9           Sec. 2054.076.  INITIAL AND CONTINUING EDUCATION.  (a)  The

2-10     department shall provide mandatory guidelines to state  agencies

2-11     regarding the initial and continuing education requirements needed

2-12     for information resources managers.

2-13           (b)  An individual who is appointed the information resources

2-14     manager of a state agency before September 1, 1992, is exempt from

2-15     the requirements of the department regarding initial education

2-16     needed for that position.

2-17           (c)  The department may provide educational materials and

2-18     seminars for state agencies, state agency financial officers, and

2-19     information resources managers.

2-20           (d)  The department shall conduct seminars and briefings for

2-21     information resources managers and state agency financial officers

2-22     that address information resources technologies issues that may

2-23     arise in the appropriations process.

2-24           SECTION 5.  Section 2054.098(a), Government Code, is amended

2-25     to read as follows:

2-26           (a)  The department shall inform a state agency whether a

2-27     plan or plan amendment is approved or disapproved by sending a

 3-1     letter to the agency's information resources manager, its executive

 3-2     director, and each member of its governing body. If a plan is

 3-3     disapproved, the department shall provide to the state agency in

 3-4     writing notice of and the reasons for disapproval and the changes

 3-5     that are necessary for the plan's approval.

 3-6           SECTION 6.  Subchapter E, Chapter 2054, Government Code, is

 3-7     amended by adding Section 2054.0985 to read as follows:

 3-8           Sec. 2054.0985.  REQUIREMENT FOR PROJECT APPROPRIATIONS.  The

 3-9     legislature may not appropriate money to a state agency for an

3-10     agency project unless the project is described in the agency's

3-11     approved agency strategic plan.

3-12           SECTION 7.  Section 2054.101, Government Code, is amended by

3-13     adding Subsection (c) to read as follows:

3-14           (c)  The department shall instruct state agencies to include

3-15     in their operating plans the extent to which proposed new systems

3-16     or substantial modifications to existing systems allow for the

3-17     sharing of information electronically within and among agencies.

3-18     The department may require agencies that acquire or modify systems

3-19     to allow for the sharing of information electronically within and

3-20     among agencies when feasible.

3-21           SECTION 8.  Subchapter E, Chapter 2054, Government Code, is

3-22     amended by adding Section 2054.1011 to read as follows:

3-23           Sec. 2054.1011.  INFORMATION COLLECTING; BIENNIAL OPERATING

3-24     PLAN.  (a)  Each state agency periodically shall analyze the

3-25     information it collects from individuals, businesses, and

3-26     government and determine whether the same information is collected

3-27     by more than one unit of the agency or by another state or local

 4-1     governmental entity.  Each agency shall also periodically submit to

 4-2     a sample of the persons from whom it collects information questions

 4-3     designed to assist a determination of whether the information can

 4-4     feasibly be collected in a more efficient, more effective, or less

 4-5     onerous way. Using the responses to the questions and the results

 4-6     of its analyses, the agency shall also analyze whether the forms

 4-7     the agency uses to collect information should be revised,

 4-8     simplified, reduced to one page, used by another state or local

 4-9     governmental entity, or otherwise altered to reflect the

4-10     information collecting practices of another state or local

4-11     governmental entity.  The agency shall summarize these analyses in

4-12     the agency's biennial operating plan.

4-13           (b)  Each state agency shall indicate in its biennial

4-14     operating plan the extent to which it is coordinating its

4-15     collection of information with other state and local governmental

4-16     entities.

4-17           SECTION 9.  Section 2054.102, Government Code, is amended to

4-18     read as follows:

4-19           Sec. 2054.102.  EVALUATION OF OPERATING PLANS BY DEPARTMENT.

4-20     (a)  The department shall specify procedures for the submission,

4-21     review, approval, and disapproval of plans and amendments,

4-22     including procedures for review or reconsideration of the

4-23     department's disapproval of a plan or plan amendment.

4-24           (b)  The department shall inform a state agency whether a

4-25     plan or plan amendment is approved or disapproved by sending a

4-26     letter to the agency's information resources manager, its executive

4-27     director, and each member of its governing body.       

 5-1           SECTION 10.  Subchapter E, Chapter 2054, Government Code, is

 5-2     amended by adding Section 2054.105 to read as follows: 

 5-3           Sec. 2054.105.  NOTIFICATION OF NONCOMPLIANCE.  The

 5-4     department shall notify the governor, the state auditor, and the

 5-5     Legislative Budget Board when an agency is not complying with a

 5-6     provision of this subchapter.

 5-7           SECTION 11.  Subchapter F, Chapter 2054, Government Code, is

 5-8     amended by adding Sections 2054.120-2054.124 to read as follows:

 5-9           Sec. 2054.120.  PROJECT PLANNING, MONITORING, AND EVALUATION.

5-10     (a)  A state agency that proposes to spend appropriated money for a

5-11     project shall first define in writing the expected results of the

5-12     project.

5-13           (b)  The state agency shall monitor costs while the project

5-14     is developed and implemented.

5-15           (c)  The department shall monitor and independently evaluate

5-16     the planning and development of the project and periodically inform

5-17     the legislative audit committee of the department's evaluation.

5-18           (d)  After the project is implemented, the state agency shall

5-19     evaluate in writing the extent to which the expected benefits of

5-20     the project were achieved. The agency shall send its evaluation and

5-21     supporting documentation to the state auditor. The state auditor

5-22     shall review the evaluation for validity and inform the legislative

5-23     audit committee of the auditor's determination.

5-24           Sec. 2054.121.  CONTRACT AMENDMENTS.  (a)  A state agency

5-25     shall analyze a proposed amendment to an information resources or

5-26     information resources technologies contract before agreeing to the

5-27     amendment to determine if the contract amendment is advantageous

 6-1     for the agency.

 6-2           (b)  If the state agency does not possess the necessary

 6-3     expertise to analyze the amendment, the agency shall contract with

 6-4     another agency or with a private consultant to analyze the

 6-5     amendment.  Section 2054.119 does not apply to a contract with

 6-6     another agency under this subsection, and an agency shall give

 6-7     preference to another agency that offers to analyze the amendment

 6-8     if the department states that the other agency has the necessary

 6-9     expertise.

6-10           (c)  Before a state agency agrees to a contract amendment for

6-11     a project that will increase the cost of the project by at least 10

6-12     percent:

6-13                 (1)  the department must approve the amendment; and

6-14                 (2)  the state agency must inform the governor,

6-15     lieutenant governor, speaker of the house of representatives,

6-16     senate finance committee, and house appropriations committee of the

6-17     proposed amendment.

6-18           Sec. 2054.122.  INTERAGENCY AND OTHER INTERGOVERNMENTAL

6-19     ELECTRONIC SHARING OF INFORMATION.  (a)  All state agencies within

6-20     a functional area of state government established under Section

6-21     2056.006 shall investigate together the possibilities of sharing

6-22     information, to the extent allowed by other law, among the agencies

6-23     electronically.  Agencies within a functional area shall create an

6-24     interagency work group to create common standards and conventions

6-25     for sharing information electronically under appropriate controls

6-26     for privacy, security, accuracy, and, when applicable,

6-27     confidentiality.

 7-1           (b)  The department shall assist the interagency work groups

 7-2     and when appropriate approve in accordance with Section 2054.051(e)

 7-3     the provisions that a work group makes for sharing information

 7-4     under this section.

 7-5           (c)  A state agency with an annual operating budget of more

 7-6     than $100 million, and any other state agency at the direction of

 7-7     the governor, shall consult counties, municipalities, and regional

 7-8     councils of government about ways to share information relating to

 7-9     economic development, the provision of social services, education

7-10     and training, and public safety.

7-11           (d)  A state agency or agencies that propose a project

7-12     related to the interagency or intergovernmental sharing of

7-13     information must show, in the agency's or agencies' strategic plans

7-14     and operating plans under Subchapter E, why the project provides an

7-15     efficient and effective way to perform a needed function.

7-16           Sec. 2054.123.  INFORMATION COLLECTING.  (a)  Each state

7-17     agency shall coordinate its collection of information with other

7-18     state and local governmental entities to the extent it is feasible

7-19     to do so and allowed by other law, under appropriate controls for

7-20     the privacy, security, accuracy, and, when applicable,

7-21     confidentiality of the information.

7-22           (b)  Each state agency shall when feasible and appropriate

7-23     revise, simplify, reduce to one page, or otherwise alter the forms

7-24     it uses to collect information to reflect the information

7-25     collecting practices of another state or local governmental entity.

7-26     Each state agency shall when feasible and appropriate allow another

7-27     state or local governmental entity to use the agency's form or the

 8-1     information that the agency collects using the form, under

 8-2     appropriate controls for the privacy, security, accuracy, and, when

 8-3     applicable, confidentiality of the information.

 8-4           (c)  Each state agency shall when appropriate and feasible

 8-5     spend at least 15 percent of the money it spends collecting

 8-6     information by buying the information from an entity that has

 8-7     already collected it or by contracting for information collection

 8-8     services outside the agency, under appropriate controls for the

 8-9     privacy, security, accuracy, and, when applicable, confidentiality

8-10     of the information.

8-11           Sec. 2054.124.  LEASING EXCESS CAPACITY.  A state agency

8-12     shall evaluate the extent to which it is using the full capacity of

8-13     its information systems.  A state agency that uses less than 60

8-14     percent of the capacity of one of its information systems shall

8-15     consider leasing the excess capacity to another state or local

8-16     governmental entity.

8-17           SECTION 12.  The Department of Information Resources shall

8-18     study the state's current system of disposing of surplus and

8-19     salvage information resources technologies and report the results

8-20     of its study, including its recommendations for any needed changes

8-21     in law, to the legislature and the General Services Commission not

8-22     later than November 1, 1998.

8-23           SECTION 13.  (a)  Each state agency shall designate an agency

8-24     officer or employee who is responsible for coordinating the

8-25     agency's response to the problem that the approach of the year 2000

8-26     presents for certain information resources technologies. The

8-27     Department of Information Resources and the state auditor shall

 9-1     coordinate the state agencies' response to the problem and shall

 9-2     report periodically to the senate finance committee and the house

 9-3     appropriations committee on the status of the state's response and

 9-4     the estimated cost to address the problem.

 9-5           (b)  All state agency purchases of information resources

 9-6     technologies must reasonably take into account the approach of the

 9-7     year 2000.

 9-8           SECTION 14.  (a)  The Department of Information Resources

 9-9     shall study how best to create a nonprofit business entity that

9-10     could  contract both with the state and with private entities and

9-11     that could perform certain public functions for the state, such as

9-12     looking at the state's future information resources technologies

9-13     needs for the purposes of promoting the state's economic

9-14     development and improving the efficiency and cost-effectiveness of

9-15     the state's delivery of government services or government

9-16     information, including, when appropriate, the reengineering of the

9-17     service delivery systems.  The department's study shall include an

9-18     evaluation of how the state could pay the nonprofit entity to solve

9-19     a problem for state government and how the state could then

9-20     appropriately receive royalties when the solution the state paid

9-21     for is marketed to other entities.  The department shall report the

9-22     results of its study to the governor and to the Legislative Budget

9-23     Board not later than January 30, 1998.

9-24           (b)  If the Department of Information Resources determines

9-25     that an entity with the characteristics described by Subsection (a)

9-26     of this section could be created by the state, including the

9-27     characteristic that would allow the state to share royalties when a

 10-1    solution the state paid to develop is marketed, the department may

 10-2    create the entity in accordance with current law and may contract

 10-3    with the entity to perform technical functions for the department

 10-4    that the department is authorized to perform.

 10-5          SECTION 15.  (a)  The Health and Human Services Commission,

 10-6    all agencies that are health and human services agencies under

 10-7    Chapter 531, Government Code, the Texas Department of Criminal

 10-8    Justice, and the Texas Youth Commission shall all work together to

 10-9    design a common form that each agency shall use to gather basic

10-10    demographic information about the agency's clients and service

10-11    recipients and about persons regulated by the agency. The agencies

10-12    shall design the form so that it can be entered cost-effectively

10-13    into an electronic database. The agencies shall design the database

10-14    so that the other agencies can easily search the database before

10-15    collecting demographic information about a person and so that the

10-16    information can be shared among the agencies electronically to the

10-17    extent allowed by other law. Unless required by other law, the

10-18    agencies may not recollect information on the form that one of the

10-19    agencies has collected and entered into the database.

10-20          (b)  The agencies shall comply with all legal requirements

10-21    relating to the privacy, security, confidentiality, and accuracy of

10-22    the information. The agencies shall identify any state or federal

10-23    legal impediments to the efficient and effective collection and

10-24    sharing of demographic information in accordance with this section

10-25    and report the impediments to the legislature not later than

10-26    November 1, 1998.

10-27          (c)  The agencies shall begin using the form and collecting

 11-1    the basic demographic information on the form in accordance with

 11-2    this section not later than September 1, 1998, except to the extent

 11-3    that a legal impediment makes it impossible to do so.

 11-4          SECTION 16.  (a)  The Public Utility Commission of Texas, the

 11-5    Railroad Commission of Texas, the Texas Natural Resource

 11-6    Conservation Commission, the General Land Office, and the secretary

 11-7    of state shall all work together to design a common form that each

 11-8    agency shall use to gather basic demographic information about the

 11-9    agency's clients and service recipients and about persons regulated

11-10    by the agency. The agencies shall design the form so that it can be

11-11    entered cost-effectively into an electronic database. The agencies

11-12    shall design the database so that the other agencies can easily

11-13    search the database before collecting demographic information about

11-14    a person and so that the information can be shared among the

11-15    agencies electronically to the extent allowed by other law. Unless

11-16    required by other law, the agencies may not recollect information

11-17    on the form that one of the agencies has collected and entered into

11-18    the database.

11-19          (b)  The agencies shall comply with all legal requirements

11-20    relating to the privacy, security, confidentiality, and accuracy of

11-21    the information. The agencies shall identify any state or federal

11-22    legal impediments to the efficient and effective collection and

11-23    sharing of demographic information in accordance with this section

11-24    and report the impediments to the legislature not later than

11-25    November 1, 1998.

11-26          (c)  The agencies shall begin using the form and collecting

11-27    the basic demographic information on the form in accordance with

 12-1    this section not later than September 1, 1998, except to the extent

 12-2    that a legal impediment makes it impossible to do so.

 12-3          SECTION 17.  (a)  The Texas Department of Commerce shall

 12-4    obtain the right to use existing software that is affordable and

 12-5    has the following characteristics:

 12-6                (1)  it contains information and tools that a local

 12-7    community can use to promote economic development;

 12-8                (2)  it contains information and tools that a business,

 12-9    including a small or disadvantaged business, can use to make

12-10    decisions about remaining, expanding, or relocating in a local

12-11    community;

12-12                (3)  it contains information and tools that investors

12-13    can use to make decisions about investing in a local community; and

12-14                (4)  it contains information and tools that

12-15    policymakers can use to examine the ways in which federal, state,

12-16    and local economic development money is or could be used in a local

12-17    community.

12-18          (b)  The Texas Department of Commerce shall select five rural

12-19    and three major urban communities to participate in a pilot project

12-20    during the state fiscal year ending August 31, 1998, to demonstrate

12-21    the effectiveness and feasibility of using the software for

12-22    economic purposes.  A selected community must pay two-thirds of the

12-23    costs of obtaining and operating the software for the community.

12-24          SECTION 18.  This Act takes effect September 1, 1997.

12-25          SECTION 19.  The importance of this legislation and the

12-26    crowded condition of the calendars in both houses create an

12-27    emergency and an imperative public necessity that the

 13-1    constitutional rule requiring bills to be read on three several

 13-2    days in each house be suspended, and this rule is hereby suspended.