SRC-SEW S.B. 1458 77(R)BILL ANALYSIS Senate Research CenterS.B. 1458 By: Duncan State Affairs 6/25/2001 Enrolled DIGEST AND PURPOSE Currently, Texas is moving forward with electronic government (e-government) in a decentralized fashion, with no one organization responsible for ensuring that e-government advances effectively and efficiently in an increasingly high-tech world. Lack of coordination between government entities concerning e-government has also resulted in increased costs to taxpayers resulting from unnecessarily replicated costs of developing and implementing systems, incompatible systems, poor interoperability, and ineffective security. S.B. 1458 creates a number of new electronic services designed to benefit Texas citizens and businesses and to improve the efficiency and effectiveness of state and local government. This bill establishes an Electronic Government Program Management Office in the Department of Information Resources (DIR) to guide, promote, and facilitate the implementation of select e-government projects and to manage the ongoing development of the TexasOnline portal. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Department of Information Resources in ARTICLE 1, SECTION 1.01. (Sections 2055.101, 2055.102, Government Code) and SECTION 1.06 of this bill. Rulemaking authority is granted to school districts and open-enrollment charter schools in ARTICLE 6, SECTION 6.01 (Section 32.104, Education Code). SECTION BY SECTION ANALYSIS ARTICLE 1. ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT SECTION 1.01. CREATION OF OFFICE. Amends Title 10B, Government Code, by adding Chapter 2055, as follows: CHAPTER 2055. ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT SUBCHAPTER A. GENERAL PROVISIONS Sec. 2055.001. DEFINITIONS. Defines "board," "department," "electronic government project," "local government," "TexasOnline," "institution of higher education," "office," and "state agency." Sec. 2055.002. APPLICABILITY TO INSTITUTIONS OF HIGHER EDUCATION. Provides that, except as provided by this section, the requirements of this chapter regarding electronic government projects do not apply to institutions of higher education. Authorizes an institution of higher education, subject to approval by the Electronic Government Program Management Office (office) of the Department of Information Resources (department), to elect to participate regarding an electronic government project of that institution in the same manner as a state agency under this chapter. Sets forth requirements and guidelines regarding whether the institution makes this election and the office approves the election. Sec. 2055.003. SUNSET PROVISION. Provides that the office is subject to Chapter 325 (Texas Sunset Act) and that, unless continued in existence as provided by that chapter, the office is abolished September 1, 2005. [Sections 2055.004-2055.050 reserved for expansion] SUBCHAPTER B. PROGRAM MANAGEMENT OFFICE Sec. 2055.051. CREATION. Requires the department to create an Electronic Government Program Management Office (office) to direct and facilitate the implementation of electronic government projects selected under this chapter. Sec. 2055.052. GENERAL POWERS AND DUTIES. Requires the office to perform certain functions. Sec. 2055.053. LOCAL GOVERNMENT AND FEDERAL PROJECTS. Authorizes the office to coordinate certain electronic government projects. Sec. 2055.054. COORDINATION AMONG STATE AGENCIES; APPROVAL OF SPENDING. Requires the office, in coordination with the Legislative Budget Board and the comptroller, to perform certain functions. Requires the office to create state agency coordination teams, as appropriate, to reduce information technology expenditures and eliminate unnecessary duplication. Sec. 2055.055. COOPERATION; STANDARDS. Requires a state agency to perform certain functions. Requires the department, in requesting cooperation from a state agency under this section, to consider the necessity of the request as well as the cost to the agency in time and resources. Requires the office to establish standards for state agencies to follow in implementing selected electronic government projects to ensure maximum savings through cooperation among agencies. Sec. 2055.056. QUALITY ASSURANCE. Requires the office, in coordination with the state auditor, the Legislative Budget Board, and the affected state agency, to provide quality assurance services to monitor electronic government projects selected under Section 2055.101. Sec. 2055.057. FUNDING FOR PROGRAM MANAGEMENT OFFICE. Requires the office, in coordination with certain entities, to develop a model for funding the office from a portion of the money appropriated for projects selected under Section 2055.101, including staff necessary for the office. Authorizes the department to include in its appropriations request a proposal for funding projects selected under Section 2055.101. Sec. 2055.058. TEXASONLINE. Requires the division of the department with responsibility for TexasOnline to coordinate the ongoing development of TexasOnline with the office. Requires the office to promote the use of TexasOnline by state agencies. Sec. 2055.059. USE OF WEST TEXAS DISASTER RECOVERY AND OPERATIONS CENTER. Defines "center." Requires the office to use the center for certain purposes. Requires the office to serve as the state's primary contact with the center regarding the consolidation of data operations and recovery. Requires the office to encourage increased use of the center by state agencies. [Reserves Sections 2055.060-2055.100 for expansion] SUBCHAPTER C. MANAGEMENT OF ELECTRONIC GOVERNMENT PROJECTS Sec. 2055.101. SELECTION OF ELECTRONIC GOVERNMENT PROJECTS. Requires the office, in coordination with certain entities, to develop selection criteria for the type of electronic government projects that require direct oversight by the office. Requires the criteria to include certain factors. Requires the office to submit the criteria developed under this section to the department. Requires the department to adopt the criteria by rule. Requires the office, based on any selection criteria adopted under this section and in coordination with certain entities, to select proposed or existing electronic government projects. Sec. 2055.102. APPEAL OF SELECTION. Sets forth guidelines regarding appeal procedures for a state agency that disagrees with the selection of an electronic government project under Section 2055.101. Provides that the governor's decision regarding selection is final. Requires the department by rule to adopt appeal procedures. Sec. 2055.103. USE OF TEXASONLINE. Requires the office, to the extent possible, to use TexasOnline for electronic government projects that it manages. Requires the office to evaluate current and potential electronic government projects to determine whether they are suitable for TexasOnline. Sec. 2055.104. ENTERPRISE RESOURCE PLANNING; USE OF OFFICE REQUIRED. Defines certain elements included under the term "enterprise resource planning." Requires the office, in coordination with the Health and Human Services Commission and the comptroller, to establish certain standards. Requires the standards to build on the models developed by the commission. Requires a state agency that chooses to implement or modify an electronic government project for an enterprise resource planning system to comply with the standards developed by the office under this section. Sec. 2055.105. ONLINE SERVICE FOR NEW BUSINESSES. Requires the office, with assistance from the business permit office of the Texas Department of Economic Development and any other affected state agencies, to develop and implement a plan for the creation of an electronic government project to provide new businesses in this state a single source for information and permitting. Sets forth requirements for the project. Requires certain state agencies involved in issuing permits to new businesses to assist the office in the development and operation of the project. Requires state agencies to cooperate with the office to structure their procedures to facilitate participation in the project. Sec. 2055.106. LEGISLATIVE OVERSIGHT COMMITTEE. Creates the Legislative Oversight Committee for Electronic Government Projects to oversee the establishment of electronic government projects by the office and state agencies. Requires the speaker of the house of representatives and the lieutenant governor to appoint members of the committee and assign duties as appropriate. Provides that the committee is abolished and this section expires December 31, 2004. [Reserves Sections 2055.107-2055.150 for expansion] SUBCHAPTER D. ADDITIONAL PLANNING, OVERSIGHT, AND REPORTS Sec. 2055.151. ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT OFFICE ADVISORY COMMITTEE. Requires the governing board of the department (board) to create an Electronic Government Program Management Office Advisory Committee under Section 2054.033 to provide ongoing direction for the operation of the office. Prohibits the board from appointing more than 15 members to the committee. Requires the committee to include certain members. Requires the committee to assist the office for certain purposes. Authorizes a governmental member of the committee to be reimbursed for expenses only from money available to the governmental entity the member represents. Sec. 2055.152. STRATEGIC AND BIENNIAL OPERATING PLANS. Requires the office to review state agency plans prepared under Sections 2054.095 and 2054.100 for certain purposes. Sec. 2055.153. REPORTS ON ELECTRONIC GOVERNMENT PROJECTS. Requires the office, in coordination with the quality assurance team of the Legislative Budget Board and the state auditor, to establish a state agency reporting system that requires state agencies to report to the office on certain issues. Requires the reports established under this section to include a certain analysis. SECTION 1.02. REPORT ON ELECTRONIC GOVERNMENT PROJECTS. Amends Section 2054.055(b), Government Code, to require the report to include certain information. SECTION 1.03. REPORT ON STRATEGIC AND BIENNIAL OPERATING PLANS. Requires the Electronic Government Program Management Office, not later than November 1, 2001, to complete its recommendations on modifying instructions based on the initial review conducted under Section 2055.152, Government Code, as added by this article. SECTION 1.04. APPOINTMENT OF LEGISLATIVE OVERSIGHT COMMITTEE. Requires the members of the Legislative Oversight Committee for Electronic Government Projects created under Section 2055.106, Government Code, as added by this article, not later than November 15, 2001, to be designated under that section. SECTION 1.05. APPOINTMENT OF ELECTRONIC PROGRAM MANAGEMENT OFFICE ADVISORY COMMITTEE. Requires the governing board of the Department of Information Resources, not later than January 15, 2002, to appoint the members of the Electronic Government Program Management Office Advisory Committee, as provided by Section 2055.151, Government Code, as added by this article. SECTION 1.06. ADOPTION OF RULES. Requires the Department of Information Resources, not later than May 31, 2002, to adopt the rules required by Sections 2055.101 and 2055.102, Government Code, as added by this article. SECTION 1.07. PLAN. Requires the Electronic Government Program Management Office, not later than September 1, 2002, to complete the plan required under Section 2055.105, Government Code, as added by this article. Requires the plan to outline the recommendations and resources necessary to further develop and implement the Internet services provided under that section. Requires the business permit office of the Texas Department of Economic Development and any other affected state agencies to assist the Electronic Government Program Management Office in developing the plan. SECTION 1.08. FUNDING DATE. Provides that Section 2055.101(c), Government Code, as added by this article, applies only to projects to be funded after September 1, 2003. ARTICLE 2. TEXASONLINE SECTION 2.01. AMENDMENT OF DEFINITIONS. Amends Section 2054.003, Government Code, as follows: Sec. 2054.003. DEFINITIONS. Defines "electronic government project," "Local government," "program management office," and "TexasOnline." SECTION 2.02. USE OF TEXASONLINE. Amends Chapter 2054F, Government Code, by adding Section 2054.113, as follows: Sec. 2054.113. DUPLICATION WITH TEXASONLINE. Provides that this section does not apply to a state agency that is a university system or institution of higher education as defined by Section 61.003 (Definitions), Education Code. Prohibits a state agency from duplicating an infrastructure component of TexasOnline unless the program management office approves the duplication. Defines "infrastructure" under this section. SECTION 2.03. TEXASONLINE GRANT PROGRAM. Amends Chapter 2054, Government Code, by adding Subchapter J, as follows: SUBCHAPTER J. TEXASONLINE GRANT PROGRAM Sec. 2054.301. CREATION. Creates the TexasOnline grant program to enable counties, municipalities, and school districts to provide electronic government services through TexasOnline. Sec. 2054.302. MANAGEMENT. Requires the program management office to perform certain functions. Sec. 2054.303. PREFERENCE FOR DISTRIBUTION OF GRANT MONEY. Requires the department, in determining the distribution of grant money under this subchapter, to prefer counties, municipalities, and school districts located in a strategic investment area, as defined by Section 171.721 (Definitions), Tax Code. Sec. 2054.304. CONDITIONS. Requires a grant recipient, as a condition of receiving a grant under this subchapter, to agree to maintain online services after the grant period terminates. Requires the department and the grant recipient to negotiate and agree on the conditions of the grant, including the length of time required for maintenance of online services after the grant period ends. Sec. 2054.305. USE OF GRANT MONEY. Authorizes grant money to be used only for certain functions. Prohibits grant money from being used to pay for communications links to public or private telecommunication systems, such as the state's public telecommunications network or for Internet service provider costs. Sec. 2054.306. EXPIRATION. Provides that this subchapter expires September 1, 2003. SECTION 2.04. FUNDING CONTINGENCY. Provides that the provisions in Article 2 of this Act apply to the extent that funds are specifically appropriated for the purpose of Article 2 of this Act. ARTICLE 3. PROCUREMENT SECTION 3.01. Amends Chapter 2177, Government Code, by adding Section 2177.0001, as follows: Sec. 2177.0001. DEFINITIONS. Defines"institution of higher education," "political subdivision," and "state agency." SECTION 3.02. Amends Chapter 2177, Government Code, by adding Section 2177.005, as follows: Sec. 2177.005. APPLICABILITY TO INSTITUTIONS OF HIGHER EDUCATION. Authorizes, but does not require, an institution of higher education to participate in any electronic system established under this chapter. ARTICLE 4. MISCELLANEOUS INFORMATION RESOURCES ISSUES SECTION 4.01. CHIEF INFORMATION OFFICER. Amends Chapter 2054B, Government Code, adding Section 2054.0285 and amending Section 2054.029, as follows: Sec. 2054.0285. EXECUTIVE DIRECTOR: CHIEF INFORMATION OFFICER; POWERS AND DUTIES. Requires the governing board (board) of the Department of Information Resources (department) to employ an executive director. Provides that the executive director is the chief information officer for this state. Provides that the executive director has authority for all aspects of information technology for state agencies, including certain ones. Sec. 2054.029. New heading: STAFF; SEPARATION OF RESPONSIBILITIES. Deletes reference to an executive director employed by the board. SECTION 4.02. VENDOR INCENTIVES. Amends Chapter 2054C, Government Code, by adding Section 2054.058, as follows: Sec. 2054.058. CONSIDERATION OF VENDOR INCENTIVES. Requires the department, when contracting with a vendor to perform a task related to an electronic government project, to consider methods of payments, including considering whether a percentage of money to be saved could be used to provide an incentive to the vendor to complete the project on time and under budget. SECTION 4.03. PUBLIC INFORMATION EXCEPTION. Amends Chapter 552C, Government Code, by adding Section 552.136, as follows: Sec. 552.136. EXCEPTION: GOVERNMENT INFORMATION RELATED TO SECURITY ISSUES FOR COMPUTERS. Provides that information is excepted from the requirements of Section 552.021 if it is information that relates to computer network security or to the design, operation, or defense of a computer network. Provides that certain information is confidential. SECTION 4.04. TEXASONLINE DIVISION. Amends Chapter 2054I, Government Code, as added by S.B. No. 187, Acts of the 77th Legislature, Regular Session, 2001, by adding Section 2054.2645, as follows: Sec. 2054.2645. SUNSET PROVISION. Provides that the division is subject to Chapter 325 (Texas Sunset Act) and, unless continued in existence as provided by that chapter, the division is abolished September 1, 2005. SECTION 4.05. ELECTRONIC GRANTS MANAGEMENT SYSTEM. Requires the Department of Information Resources (department) to study the costs and benefits of establishing a statewide electronic grants management system for state grant programs. Authorizes the department to develop a plan for and implement an electronic grants management system for programs that would receive the greatest benefit from the system. SECTION 4.06. SPECIFICATIONS FOR ELECTRONIC DATA CLEARINGHOUSE; REPORT. Requires the Department of Information Resources (department), in coordination with certain entities, no later than January 1, 2003, to develop certain specifications for a statewide electronic data clearinghouse. Requires the department to identify ways to streamline and reduce reporting requirements on counties and municipalities, when practical, through implementation of the clearinghouse. ARTICLE 5. COMPTROLLER PROVISIONS ON USE OF ADVANCED EQUIPMENT, DATABASES, AND DELEGATION OF TASKS TO OUTSIDE PERSONNEL SECTION 5.01. ADVANCED DATABASE FOR AUDITS. Amends Chapter 111A, Tax Code, by adding Section 111.0034, as follows: Sec. 111.0034. ADVANCED DATABASE SYSTEM FOR AUDITS. (a) Requires the comptroller to develop an advanced electronic audit database system for use by the comptroller's audit division. Sets forth requirements for the system. (b) Authorizes the comptroller to contract with a vendor to develop or implement the system. (c) Requires the comptroller, if the comptroller contracts with a vendor to develop or implement the system, to protect any confidential information provided to the vendor. Provides that a person who receives confidential information under this section and each employee or agent of that person is subject to the same prohibitions against disclosure of the information, and the same penalties and sanctions for improper disclosure, that apply to the comptroller. SECTION 5.02. ADVANCED DATABASE FOR TAX COLLECTIONS. Amends the heading for Section 111.0035, Tax Code, to read as follows: Sec. 111.0035. ADVANCED DATABASE SYSTEM FOR TAX COLLECTIONS. SECTION 5.03. OUTSIDE PERSONNEL. Amends Chapter 111A, Tax Code, by adding Section 111.0045, as follows: Sec. 111.0045. USE OF OUTSIDE PERSONNEL; DELEGATION OF POWERS. Authorizes the comptroller, as necessary to enhance productivity, to employ or contract for the services of certain persons for certain purposes. Authorizes the comptroller to delegate to persons employed or contracted under this section the power to perform duties as required. SECTION 5.04. ADVANCED EQUIPMENT. Amend Chapter 111, Tax Code, by adding Subchapter G, as follows: SUBCHAPTER G. ADVANCED TECHNOLOGY EQUIPMENT Sec. 111.351. WIRELESS EQUIPMENT FOR AUDITORS. Requires the comptroller to acquire wireless communication equipment for use by its auditors, including wireless modems for laptop computers for high-speed, wireless access to comptroller systems. Sec. 111.352. COMPUTER AND WIRELESS EQUIPMENT FOR ENFORCEMENT STAFF. Requires the comptroller to acquire portable computers with remote or wireless communications equipment for use by its enforcement staff. Requires the portable computers acquired under this section to meet certain requirements. Requires the equipment to enable enforcement staff to perform certain functions. Sec. 111.353. ADVANCED SCANNERS FOR FIELD OFFICES. Requires the comptroller to acquire advanced scanners for its field offices. Requires the scanners to enable enforcement officers to scan enforcement data directly into comptroller databases without requiring later manual entry. ARTICLE 6. TRANSFER OF DATA PROCESSING EQUIPMENT TO STUDENTS SECTION 6.01. Amends Chapter 32, Education Code, by adding Subchapter C, as follows: SUBCHAPTER C. TRANSFER OF DATA PROCESSING EQUIPMENT TO STUDENTS Sec. 32.101. DEFINITION. Defines "data processing." Sec. 32.102. AUTHORITY. Authorizes, as provided by this subchapter, a school district or open-enrollment charter school to transfer to a student enrolled in the district or school: any data processing equipment donated to the district or school, including equipment donated by a private donor or a state eleemosynary institution or a state agency under Section 2175.126, Government Code; any equipment purchased by the district or school, to the extent consistent with Section 32.105; and any surplus or salvage equipment owned by the district or school. Authorizes a school district or open-enrollment charter school to accept certain donations, gifts, and grants. Sec. 32.103. ELIGIBILITY; PREFERENCE. Provides that a student is eligible to receive data processing equipment under this subchapter only if the student does not otherwise have home access to data processing equipment, as determined by the student's school district or open-enrollment charter school. Requires, in transferring data processing equipment to students, a school district or open-enrollment charter school to give preference to educationally disadvantaged students. Sec. 32.104. REQUIREMENTS FOR TRANSFER. Requires a school district or open-enrollment charter school, before transferring data processing equipment to a student, to perform certain actions, including the adoption of rules. Sec. 32.105. EXPENDITURE OF PUBLIC FUNDS. Authorizes a school district or open-enrollment charter school to spend public funds for certain purposes. Sec. 32.106. RETURN OF EQUIPMENT. Requires a student who receives data processing equipment from a school district or open-enrollment charter school under this subchapter, except as provided by this section, to return the equipment to the district or school by a certain date. Provides that this section does not apply if, at the time the student is required to return the data processing equipment under that subsection, the district or school determines that the equipment has no marketable value. SECTION 6.02. Amends Section 2175.126, Government Code, to require a state agency, if a disposition of the state agency's surplus or salvage data processing equipment is not made under this subchapter, to transfer the equipment to a school district or open-enrollment charter school in this state under Chapter 32C, Education Code, or to the Texas Department of Criminal Justice. Makes conforming changes. ARTICLE 7. EXCEPTIONS TO PUBLIC INFORMATION ACT SECTION 7.01. Amends Section 552.104, Government Code, to provide that the requirement of Section 552.022 that a category of information listed under Section 552.022(a) is public information and not excepted from required disclosure under this chapter unless expressly confidential under law does not apply to information that is excepted from required disclosure under this section. SECTION 7.02. Amends Section 552.131, Government Code, as added by Chapter 405, Acts of the 76th Legislature, Regular Session, 1999, by adding Subsection (d) to provide that the requirement of Section 552.022 that a category of information listed under Section 552.022(a) is public information and not excepted from required disclosure under this chapter unless expressly confidential under law does not apply to information that is excepted from required disclosure under this section. SECTION 7.03. Provides that the changes in law made in Sections 552.104 and 552.131, Government Code, by this article apply only to information in the possession of a governmental body or to which the governmental body has a right of access on or after the effective date of this Act, without regard to the date on which the governmental body first possessed or first obtained a right of access to the information. ARTICLE 8. CONTRACT CLAIMS AGAINST THE STATE SECTION 8.01. Amends Section 2260.003(a), Government Code, to prohibit the total amount of money recoverable on a claim for breach of contract under this chapter, after deducting the amount specified in Subsection (b), from exceeding an amount equal to the sum of: the balance due and owing on the contract price; and the amount or fair market value of orders or requests for additional work made by a unit of state government to the extent that the orders or requests for additional work were actually performed. SECTION 8.02. Amends Section 2260.005, Government Code, to provide that, subject to Section 2260.007, the procedures contained in this chapter are exclusive and required prerequisites to suit in accordance with Chapter 107, Civil Practice and Remedies Code. SECTION 8.03. Amends Chapter 2260A, Government Code, by adding Section 2260.007, as follows: Sec. 2260.007. LEGISLATIVE AUTHORITY RETAINED; INTERPRETATION OF CHAPTER. (a) Provides that the legislature retains the authority to deny or grant a waiver of immunity to suit against a unit of state government by statute, resolution, or any other means the legislature may determine appropriate. (b) Provides that this chapter does not: divest the legislature of the authority to grant permission to sue a unit of state government under terms that the legislature may specify in the measure granting the permission; require that the legislature, in granting or denying permission to sue a unit of state government, comply with this chapter; or limit the effect of a legislative grant of permission to sue a unit of state government unless the grant itself provides that this chapter may have that effect. SECTION 8.04. (a) Provides that, except as provided in Subsection (b), the changes in law made to Chapter 2260, Government Code, by this article apply only to a contract executed on or after the effective date of this Act. Provides that a contract executed before the effective date of this Act is governed by the law applicable to the contract immediately before the effective date of this Act, and that law is continued in effect for that purpose. (b) Provides that a waiver of sovereign immunity to a suit granted by a concurrent resolution passed by the 77th Legislature that applies to a contract entered into before the effective date of this Act is effective according to its terms. ARTICLE 9. CONTRACTS FOR REMOVAL OF PROPERTY SECTION 9.01. Amends Chapter 472B, Transportation Code, by adding Section 472.015, as follows: Sec. 472.015. CONTRACTS FOR REMOVAL OF PROPERTY. Authorizes the Texas Department of Transportation (department), in contracting with a private business or businesses for the removal of personal property from the right-of-way or roadway of the state highway system, to: use a purchasing method described in Chapter 2156, Government Code; include the removal work in a contract entered into under Chapter 223; or select a business or businesses based on an evaluation of the experience of the business and the price and quality of the business's equipment and services. ARTICLE 10. EFFECTIVE DATE SECTION 10.01. EFFECTIVE DATE. Effective date: upon passage or September 1, 2001.