1-1     By:  Shapleigh                                         S.B. No. 187
 1-2           (In the Senate - Filed January 2, 2001; January 11, 2001,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     March 8, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0; March 8, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 187                By:  Shapleigh
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the creation of an authority and project to provide
1-11     government services through a secure and uniform online system.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Chapter 2054, Government Code, is amended by
1-14     adding Subchapter I to read as follows:
1-15              SUBCHAPTER I.  TEXASONLINE AUTHORITY AND PROJECT
1-16           Sec. 2054.251.  DEFINITIONS.  In this subchapter:
1-17                 (1)  "Authority" means the TexasOnline Authority.
1-18                 (2)  "Division" means the TexasOnline division created
1-19     by the department under Section 2054.264.
1-20                 (3)  "Local government" means a county, municipality,
1-21     special district, school district, junior college district, or
1-22     other political subdivision of the state.
1-23                 (4)  "Project" means the project implemented under
1-24     Section 2054.252.
1-25           Sec. 2054.252.  TEXASONLINE PROJECT.  (a)  The authority
1-26     shall implement a project designated "TexasOnline" that establishes
1-27     a common electronic infrastructure through which state agencies and
1-28     local governments may electronically:
1-29                 (1)  send and receive documents or required payments to
1-30     and from:
1-31                       (A)  members of the public;
1-32                       (B)  persons who are regulated by the agencies or
1-33     local governments; and
1-34                       (C)  the agencies and local governments;
1-35                 (2)  receive applications for licenses and permits and
1-36     other documents for filing from members of the public and persons
1-37     who are regulated by a state agency or local government that, when
1-38     secure access is necessary, can be electronically validated by the
1-39     agency, local government, member of the public, or regulated
1-40     person; and
1-41                 (3)  provide and receive any other service to and from
1-42     the agencies and local governments or the public.
1-43           (b)  The electronic infrastructure established by the
1-44     authority under Subsection (a) may include the Internet, intranets,
1-45     extranets, and wide area networks.
1-46           Sec. 2054.253.  MEMBERSHIP.  (a)  The authority consists of
1-47     15 members, as follows:
1-48                 (1)  a representative of each of the following state
1-49     officers or agencies appointed by the state officer or the
1-50     governing body of the agency:
1-51                       (A)  the comptroller; and
1-52                       (B)  the department;
1-53                 (2)  three representatives of local governments
1-54     appointed by the governor;
1-55                 (3)  three representatives of businesses that are
1-56     regulated by a state agency or local government, appointed by the
1-57     governor;
1-58                 (4)  four representatives of state agencies, including
1-59     an institution of higher education other than a junior college
1-60     district, appointed by the governor; and
1-61                 (5)  three public members appointed by the governor.
1-62           (b)  A representative of the state auditor shall advise the
1-63     authority.
1-64           Sec. 2054.254.  TERMS.  The members of the authority are
 2-1     appointed for staggered terms of six years with five members' terms
 2-2     expiring on February 1 of each odd-numbered year.
 2-3           Sec. 2054.255.  PRESIDING OFFICER.  The member of the
 2-4     authority representing the department is the presiding officer.
 2-5           Sec. 2054.256.  MEETINGS.  The authority shall meet at least
 2-6     quarterly.
 2-7           Sec. 2054.257.  REIMBURSEMENT OF EXPENSES.  A member of the
 2-8     authority is not entitled to compensation but is entitled to
 2-9     reimbursement for the member's travel expenses as provided by
2-10     Chapter 660 and the General Appropriations Act.
2-11           Sec. 2054.258.  TRAINING FOR AUTHORITY MEMBERS.  Not later
2-12     than six months after the date on which an authority member is
2-13     appointed, the member must complete training on the following:
2-14                 (1)  the legislation that created the authority, the
2-15     division, and the project;
2-16                 (2)  the department rules that relate to the authority
2-17     and the project;
2-18                 (3)  the programs operated by the authority and
2-19     division;
2-20                 (4)  the role and functions of the authority and
2-21     division;
2-22                 (5)  the current budget for the authority and division;
2-23                 (6)  the results of the most recent formal audit of the
2-24     authority;
2-25                 (7)  the requirements of:
2-26                       (A)  the open meetings law, Chapter 551;
2-27                       (B)  the public information law, Chapter 552;
2-28                       (C)  the administrative procedure law, Chapter
2-29     2001; and
2-30                       (D)  other laws relating to public officials,
2-31     including conflict of interest laws; and
2-32                 (8)  any applicable ethics policies adopted by the
2-33     authority or the Texas Ethics Commission.
2-34           Sec. 2054.259.  GENERAL POWERS AND DUTIES OF TEXASONLINE
2-35     AUTHORITY.  The authority shall:
2-36                 (1)  develop policies related to operation of the
2-37     project;
2-38                 (2)  consider services to be provided by the project;
2-39                 (3)  operate and promote the project;
2-40                 (4)  manage contract performance for the project;
2-41                 (5)  comply with department financial requirements;
2-42                 (6)  oversee money generated for the operation and
2-43     expansion of the project;
2-44                 (7)  develop project pricing policies, including
2-45     policies regarding any fees that a state agency or local government
2-46     may charge for a transaction that uses the project;
2-47                 (8)  evaluate participation in the project to determine
2-48     if performance efficiencies or other benefits and opportunities are
2-49     gained through project implementation;
2-50                 (9)  advise the department about the project; and
2-51                 (10)  coordinate with the department to receive
2-52     periodic security audits of the operational facilities of the
2-53     project.
2-54           Sec. 2054.260.  REPORTING REQUIREMENTS.  (a)  Not later than
2-55     September 1 of each even-numbered year, the authority shall report
2-56     on the status, progress, benefits, and efficiency gains of the
2-57     project.  The authority shall provide the report to:
2-58                 (1)  the presiding officer of each house of the
2-59     legislature;
2-60                 (2)  the chair of each committee in the legislature
2-61     that has primary jurisdiction over the department;
2-62                 (3)  the governor; and
2-63                 (4)  each state agency or local government
2-64     participating in the project.
2-65           (b)  As required by the department, the authority shall
2-66     report to the department regarding financial matters, including
2-67     project costs and revenues.
2-68           (c)  The authority shall report to the department on any
2-69     significant issues regarding contract performance on the project.
 3-1           Sec. 2054.261.  ASSISTANCE AND COORDINATION WITH OTHER
 3-2     GOVERNMENTAL ENTITIES.  The authority shall:
 3-3                 (1)  assist state agencies and local governments in
 3-4     researching and identifying potential funding sources for the
 3-5     project;
 3-6                 (2)  assist state agencies and local governments in
 3-7     using the project;
 3-8                 (3)  assist the legislature and other state leadership
 3-9     in coordinating electronic government initiatives; and
3-10                 (4)  coordinate operations between state agencies and
3-11     local governments to achieve integrated planning for the project.
3-12           Sec. 2054.262.  RULES.  (a)  The authority shall prepare
3-13     rules regarding operation of the project for consideration by the
3-14     board.
3-15           (b)  The board may adopt rules prepared by the authority.
3-16           Sec. 2054.263.  SEAL.  The authority shall adopt an icon,
3-17     symbol, brand, seal, or other identifying device to represent the
3-18     project.
3-19           Sec. 2054.264.  TEXASONLINE DIVISION.  The department shall
3-20     create a division in the department designated "TexasOnline" to
3-21     assist the authority in implementing its powers and duties under
3-22     this subchapter.
3-23           Sec. 2054.265.  SEPARATION OF RESPONSIBILITIES.  The
3-24     authority shall develop and implement policies that clearly
3-25     separate the policymaking responsibilities of the authority and the
3-26     management responsibilities of the division.
3-27           Sec. 2054.266.  GIFTS.  The authority may request and accept
3-28     a gift, donation, or grant from any person.
3-29           Sec. 2054.267.  APPLICABILITY OF OTHER LAW.  Chapter 2110
3-30     does not apply to the authority.
3-31           SECTION 2.  Subsection (f), Section 2054.062, Government
3-32     Code, is amended to read as follows:
3-33           (f)  The task force is abolished and this section expires
3-34     November [September] 1, 2001.
3-35           SECTION 3.  Subchapter F, Chapter 2054, Government Code, is
3-36     amended by adding Sections 2054.111 and 2054.112 to read as
3-37     follows:
3-38           Sec. 2054.111.  USE OF TEXASONLINE PROJECT.  (a)  In this
3-39     section, "authority," "local government," and "project" have the
3-40     meanings assigned by Section 2054.251.
3-41           (b)  A state agency shall consider using the project for
3-42     agency services provided on the Internet, including:
3-43                 (1)  financial transactions;
3-44                 (2)  applications for licenses, permits, registrations,
3-45     and other related documents from the public;
3-46                 (3)  electronic signatures; and
3-47                 (4)  any other applications that require security.
3-48           (c)  If a state agency chooses not to use the project under
3-49     Subsection (b), the agency must provide documentation to the
3-50     authority that shows the services and security required by the
3-51     agency.  The authority shall prescribe the documentation required.
3-52           (d)  A state agency that chooses to use the project under
3-53     Subsection (b) shall comply with rules adopted by the department,
3-54     including any rules regarding:
3-55                 (1)  the appearance of the agency's Internet site and
3-56     the ease with which the site can be used; and
3-57                 (2)  the use of the authority seal.
3-58           (e)  A state agency or local government that uses the project
3-59     may charge a fee if:
3-60                 (1)  the fee is necessary to recover the actual costs
3-61     directly and reasonably incurred by the agency or local government
3-62     because of the project; and
3-63                 (2)  the authority approves the amount of the fee.
3-64           (f)  A local government may not charge a fee under Subsection
3-65     (e) that is otherwise prohibited under Section 195.006 or 195.007,
3-66     Local Government Code.
3-67           Sec. 2054.112.  SECURITY REVIEW FOR NEW INTERNET SITES.  Each
3-68     state agency shall review its requirements for forms, data
3-69     collection, and notarization when planning to deliver a service
 4-1     through the Internet, to determine if the information is necessary
 4-2     and, if necessary, the appropriate level of authentication.  Based
 4-3     on this review, the agency shall:
 4-4                 (1)  eliminate any unnecessary requirements; and
 4-5                 (2)  adjust security to the appropriate level for any
 4-6     necessary requirements.
 4-7           SECTION 4.  The project created by Subchapter I, Chapter
 4-8     2054, Government Code, as added by this Act, is a continuation and
 4-9     expansion of the demonstration project created by Section 2054.062,
4-10     Government Code.
4-11           SECTION 5.  (a)  Not later than October 31, 2001, the
4-12     officers and other entities responsible for making appointments
4-13     under Section 2054.253, Government Code, as added by this Act,
4-14     shall make their initial appointments.
4-15           (b)  The governor shall designate the initial terms so that
4-16     the terms of five members described by Section 2054.253, Government
4-17     Code, as added by this Act, expire on each of the following dates:
4-18                 (1)  February 1, 2003;
4-19                 (2)  February 1, 2005; and
4-20                 (3)  February 1, 2007.
4-21           (c)  The TexasOnline Authority may not hold its first meeting
4-22     before November 1, 2001.
4-23           SECTION 6.  Not later than November 1, 2002, the TexasOnline
4-24     Authority shall report on the feasibility of allowing the sale or
4-25     placement of advertising on the project described by Section
4-26     2054.252, Government Code, as added by this Act.  The authority
4-27     shall provide the report to:
4-28                 (1)  the presiding officer of each house of the
4-29     legislature;
4-30                 (2)  the chair of each committee in the legislature
4-31     that has primary jurisdiction over the Department of Information
4-32     Resources; and
4-33                 (3)  the governor.
4-34           SECTION 7.  This Act takes effect immediately if it receives
4-35     a vote of two-thirds of all the members elected to each house, as
4-36     provided by Section 39, Article III, Texas Constitution.  If this
4-37     Act does not receive the vote necessary for immediate effect, this
4-38     Act takes effect September 1, 2001.
4-39                                  * * * * *