1-1                                   AN ACT
 1-2     relating to the management of state agency and local government
 1-3     electronic projects, equipment, and contracts, to the purchase and
 1-4     use of certain advanced technological equipment, and to the use of
 1-5     outside personnel by the comptroller of public accounts.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7            ARTICLE 1.  ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT
 1-8           SECTION 1.01.  CREATION OF OFFICE.  Subtitle B, Title 10,
 1-9     Government Code, is amended by adding Chapter 2055 to read as
1-10     follows:
1-11           CHAPTER 2055.  ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT
1-12                      SUBCHAPTER A.  GENERAL PROVISIONS
1-13           Sec. 2055.001.  DEFINITIONS.  In this chapter:
1-14                 (1)  "Board," "department," "electronic government
1-15     project," "local government," and "TexasOnline" have the meanings
1-16     assigned by Section 2054.003.
1-17                 (2)  "Institution of higher education" has the meaning
1-18     assigned by Section 61.003, Education Code.
1-19                 (3)  "Office" means the Electronic Government Program
1-20     Management Office of the department.
1-21                 (4)  "State agency" has the meaning assigned by Section
1-22     2054.003, except that the term does not include a university system
1-23     or institution of higher education.
1-24           Sec. 2055.002.  APPLICABILITY TO INSTITUTIONS OF HIGHER
1-25     EDUCATION.  (a)  Except as provided by Subsection (b), the
 2-1     requirements of this chapter regarding electronic government
 2-2     projects do not apply to institutions of higher education.
 2-3           (b)  Subject to approval by the office, an institution of
 2-4     higher education may elect to participate regarding an electronic
 2-5     government project of that institution in the same manner as a
 2-6     state agency under this chapter.  If the institution makes this
 2-7     election and the office approves the election, the institution:
 2-8                 (1)  shall comply with this chapter regarding that
 2-9     electronic government project in the same manner as a state agency;
2-10     and
2-11                 (2)  may not withdraw the project from management by
2-12     the office unless the office approves the withdrawal.
2-13           Sec. 2055.003.  SUNSET PROVISION.  The office is subject to
2-14     Chapter 325 (Texas Sunset Act).  Unless continued in existence as
2-15     provided by that chapter, the office is abolished September 1,
2-16     2005.
2-17             (Sections 2055.004-2055.050 reserved for expansion
2-18                  SUBCHAPTER B.  PROGRAM MANAGEMENT OFFICE
2-19           Sec. 2055.051.  CREATION.  The department shall create an
2-20     Electronic Government Program Management Office to direct and
2-21     facilitate the implementation of electronic government projects
2-22     selected under this chapter.
2-23           Sec. 2055.052.  GENERAL POWERS AND DUTIES.  The office shall:
2-24                 (1)  establish and support standard business practices
2-25     for electronic government projects;
2-26                 (2)  coordinate and establish standards for
 3-1     implementation of electronic government projects;
 3-2                 (3)  identify and incorporate best practices for
 3-3     electronic government projects in such areas as:
 3-4                       (A)  the procurement of hardware, software, and
 3-5     technology services;
 3-6                       (B)  project support;
 3-7                       (C)  implementation strategies;
 3-8                       (D)  project planning and scheduling;
 3-9                       (E)  quality assurance;
3-10                       (F)  overall team coordination;
3-11                       (G)  status reporting; and
3-12                       (H)  technical standards; and
3-13                 (4)  provide risk management and quality assurance
3-14     services for electronic government projects.
3-15           Sec. 2055.053.  LOCAL GOVERNMENT AND FEDERAL PROJECTS.  The
3-16     office may coordinate electronic government projects involving:
3-17                 (1)  local government; or
3-18                 (2)  the federal government.
3-19           Sec. 2055.054.  COORDINATION AMONG STATE AGENCIES; APPROVAL
3-20     OF SPENDING.  (a)  In coordination with the Legislative Budget
3-21     Board and the comptroller, the office shall:
3-22                 (1)  identify the resources necessary for projects and
3-23     opportunities among multiple state agencies for the coordination of
3-24     electronic government projects; and
3-25                 (2)  approve spending of money for electronic
3-26     government projects by affected state agencies under Section
 4-1     2055.101.
 4-2           (b)  The office shall create state agency coordination teams,
 4-3     as appropriate, to reduce information technology expenditures and
 4-4     eliminate unnecessary duplication.
 4-5           Sec. 2055.055.  COOPERATION; STANDARDS.  (a)  A state agency
 4-6     shall:
 4-7                 (1)  cooperate with the department and the office
 4-8     regarding electronic government projects; and
 4-9                 (2)  provide to the department, as often as may be
4-10     required and in the format required by the department, all
4-11     information required by the department under this chapter that has
4-12     not already been submitted to the department.
4-13           (b)  In requesting cooperation from a state agency under this
4-14     section, the department shall consider the necessity of the request
4-15     as well as the cost to the agency in time and resources.
4-16           (c)  The office shall establish standards for state agencies
4-17     to follow in implementing selected electronic government projects
4-18     to ensure maximum savings through cooperation among agencies.
4-19           Sec. 2055.056.  QUALITY ASSURANCE.  In coordination with the
4-20     state auditor, the Legislative Budget Board, and the affected state
4-21     agency, the office shall provide quality assurance services to
4-22     monitor electronic government projects selected under Section
4-23     2055.101.
4-24           Sec. 2055.057.  FUNDING FOR PROGRAM MANAGEMENT OFFICE.
4-25     (a)  In coordination with the comptroller, Governor's Office of
4-26     Budget and Planning, state auditor, and Legislative Budget Board,
 5-1     the office shall develop a model for funding the office from a
 5-2     portion of the money appropriated for projects selected under
 5-3     Section 2055.101, including staff necessary for the office.
 5-4           (b)  The department may include in its appropriations request
 5-5     a proposal for funding projects selected under Section 2055.101.
 5-6           Sec. 2055.058.  TEXASONLINE.  (a)  The division of the
 5-7     department with responsibility for TexasOnline shall coordinate the
 5-8     ongoing development of TexasOnline with the office.
 5-9           (b)  The office shall promote the use of TexasOnline by state
5-10     agencies.
5-11           Sec. 2055.059.  USE OF WEST TEXAS DISASTER RECOVERY AND
5-12     OPERATIONS CENTER.  (a)  In this section, "center" means the West
5-13     Texas Disaster Recovery and Operations Center.
5-14           (b)  The office shall use the center for the consolidation of
5-15     data operations and recovery to the extent that using the center
5-16     provides the best value to the state.
5-17           (c)  The office shall serve as the state's primary contact
5-18     with the center regarding the consolidation of data operations and
5-19     recovery.
5-20           (d)  The office shall encourage increased use of the center
5-21     by state agencies.
5-22             (Sections 2055.060-2055.100 reserved for expansion
5-23         SUBCHAPTER C.  MANAGEMENT OF ELECTRONIC GOVERNMENT PROJECTS
5-24           Sec. 2055.101.  SELECTION OF ELECTRONIC GOVERNMENT PROJECTS.
5-25     (a)  The office, in coordination with the governor, state auditor,
5-26     and Legislative Budget Board, shall develop selection criteria for
 6-1     the type of electronic government projects that require direct
 6-2     oversight by the office.  The criteria must include:
 6-3                 (1)  issues related to interagency cooperation and
 6-4     implementation;
 6-5                 (2)  costs, including reimbursement strategies;
 6-6                 (3)  requirements for authentication and security
 6-7     implications; and
 6-8                 (4)  the state's strategic vision regarding electronic
 6-9     government projects.
6-10           (b)  The office shall submit the criteria developed under
6-11     Subsection (a) to the department.  The department shall adopt the
6-12     criteria by rule.
6-13           (c)  Based on any selection criteria adopted under Subsection
6-14     (b) and in coordination with the governor, state auditor, and
6-15     Legislative Budget Board, the office may select proposed or
6-16     existing electronic government projects.
6-17           Sec. 2055.102.  APPEAL OF SELECTION.  (a)  A state agency
6-18     that disagrees with the selection of an electronic government
6-19     project under Section 2055.101 may appeal to the executive director
6-20     of the department.  If the agency disagrees with the executive
6-21     director's decision, the agency may then appeal to the board.  If
6-22     the agency disagrees with the board's decision, the agency may then
6-23     appeal to the governor.  The governor's decision regarding
6-24     selection is final.
6-25           (b)  The department by rule shall adopt appeal procedures.
6-26           Sec. 2055.103.  USE OF TEXASONLINE.  (a)  To the extent
 7-1     possible, the office shall use TexasOnline for electronic
 7-2     government projects that it manages.
 7-3           (b)  The office shall evaluate current and potential
 7-4     electronic government projects to determine whether they are
 7-5     suitable for TexasOnline.
 7-6           Sec. 2055.104.  ENTERPRISE RESOURCE PLANNING; USE OF OFFICE
 7-7     REQUIRED.  (a)  As used in this section, "enterprise resource
 7-8     planning" includes the administration of an entity's:
 7-9                 (1)  general ledger;
7-10                 (2)  accounts payable;
7-11                 (3)  accounts receivable;
7-12                 (4)  budgeting;
7-13                 (5)  inventory;
7-14                 (6)  asset management;
7-15                 (7)  billing;
7-16                 (8)  payroll;
7-17                 (9)  projects;
7-18                 (10)  grants; and
7-19                 (11)  human resources, including performance measures,
7-20     time spent on tasks, and other personnel and labor issues.
7-21           (b)  In coordination with the Health and Human Services
7-22     Commission and the comptroller, the office shall establish
7-23     standards for implementing an electronic government project for
7-24     enterprise resource planning systems in this state.  The standards
7-25     must build on the models developed by the commission.
7-26           (c)  A state agency that chooses to implement or modify an
 8-1     electronic government project for an enterprise resource planning
 8-2     system must comply with the standards developed by the office under
 8-3     this section.
 8-4           Sec. 2055.105.  ONLINE SERVICE FOR NEW BUSINESSES.  (a)  The
 8-5     office, with assistance from the business permit office of the
 8-6     Texas Department of Economic Development and any other affected
 8-7     state agencies, shall develop and implement a plan for the creation
 8-8     of an electronic government project to provide new businesses in
 8-9     this state a single source for information and permitting.
8-10           (b)  The project must:
8-11                 (1)  be integrated with TexasOnline; and
8-12                 (2)  provide comprehensive and relevant information for
8-13     a new business, including:
8-14                       (A)  steps and information necessary to start a
8-15     new business;
8-16                       (B)  general business regulations;
8-17                       (C)  information on licensing and permitting; and
8-18                       (D)  relevant telephone numbers and Internet
8-19     addresses for seeking further information.
8-20           (c)  The Texas Department of Economic Development, secretary
8-21     of state, Texas Natural Resource Conservation Commission, Texas
8-22     Department of Licensing and Regulation, Texas Department of
8-23     Transportation, comptroller, and any other state agency involved in
8-24     issuing permits to new businesses shall assist the office in the
8-25     development and operation of the project.
8-26           (d)  State agencies shall cooperate with the office to
 9-1     structure their procedures to facilitate participation in the
 9-2     project.
 9-3           Sec. 2055.106.  LEGISLATIVE OVERSIGHT COMMITTEE.  (a)  The
 9-4     Legislative Oversight Committee for Electronic Government Projects
 9-5     is created to oversee the establishment of electronic government
 9-6     projects by the office and state agencies.
 9-7           (b)  The speaker of the house of representatives and the
 9-8     lieutenant governor shall appoint the members of the committee and
 9-9     assign duties as appropriate.
9-10           (c)  The committee is abolished and this section expires
9-11     December 31, 2004.
9-12             (Sections 2055.107-2055.150 reserved for expansion
9-13         SUBCHAPTER D.  ADDITIONAL PLANNING, OVERSIGHT, AND REPORTS
9-14           Sec. 2055.151.  ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT
9-15     OFFICE ADVISORY COMMITTEE.  (a)  The board shall create an
9-16     Electronic Government Program Management Office Advisory Committee
9-17     under Section 2054.033 to provide ongoing direction for the
9-18     operation of the office.
9-19           (b)  The board shall appoint not more than 15 members to the
9-20     committee.  The committee must include:
9-21                 (1)  one member from a large state agency;
9-22                 (2)  one member from a small state agency;
9-23                 (3)  one member from a state agency not described by
9-24     Subdivision (1) or (2);
9-25                 (4)  one member from a local government;
9-26                 (5)  one member from an institution of higher
 10-1    education;
 10-2                (6)  one member from the comptroller's office;
 10-3                (7)  one member from the governor's office;
 10-4                (8)  one member from the state auditor's office;
 10-5                (9)  one member from the Legislative Budget Board; and
 10-6                (10)  at least two public members, including one member
 10-7    who represents a business.
 10-8          (c)  The committee shall assist the office to:
 10-9                (1)  establish:
10-10                      (A)  procedures;
10-11                      (B)  project priorities; and
10-12                      (C)  reporting requirements; and
10-13                (2)  provide:
10-14                      (A)  guidance, direction, and perspective about
10-15    the office's operations; and
10-16                      (B)  recommendations for implementing electronic
10-17    government projects in this state.
10-18          (d)  A governmental member of the committee may be reimbursed
10-19    for expenses only from money available to the governmental entity
10-20    the member represents.
10-21          Sec. 2055.152.  STRATEGIC AND BIENNIAL OPERATING PLANS.  The
10-22    office shall review state agency plans prepared under Sections
10-23    2054.095 and 2054.100 to:
10-24                (1)  identify electronic government projects that
10-25    should be selected by the office for management; and
10-26                (2)  recommend any changes to those plans or the
 11-1    instructions for those plans to ensure that electronic government
 11-2    projects are consistent with the state strategic plan.
 11-3          Sec. 2055.153.  REPORTS ON ELECTRONIC GOVERNMENT PROJECTS.
 11-4    (a)  In coordination with the quality assurance team of the
 11-5    Legislative Budget Board and the state auditor, the office shall
 11-6    establish a state agency reporting system that requires state
 11-7    agencies to report to the office on:
 11-8                (1)  electronic government projects selected under
 11-9    Section 2055.101 so that the office may effectively monitor those
11-10    projects; and
11-11                (2)  all other electronic government projects for that
11-12    agency.
11-13          (b)  The reports established under Subsection (a)(1) must
11-14    include an analysis of:
11-15                (1)  efficiencies achieved by the project;
11-16                (2)  costs and benefits; and
11-17                (3)  the scope of the project, including persons
11-18    affected by the project.
11-19          SECTION 1.02.  REPORT ON ELECTRONIC GOVERNMENT PROJECTS.
11-20    Subsection (b), Section 2054.055, Government Code, is amended to
11-21    read as follows:
11-22          (b)  The report must:
11-23                (1)  assess the progress made toward meeting the goals
11-24    and objectives of the state strategic plan for information
11-25    resources management;
11-26                (2)  describe major accomplishments of the state or a
 12-1    specific state agency in information resources management;
 12-2                (3)  describe major problems in information resources
 12-3    management confronting the state or a specific state agency;
 12-4                (4)  provide a summary of the total expenditures for
 12-5    information resources and information resources technologies by the
 12-6    state; [and]
 12-7                (5)  make recommendations for improving the
 12-8    effectiveness and cost-efficiency of the state's use of information
 12-9    resources; and
12-10                (6)  include a list compiled by the department's
12-11    program management office from the information gathered under
12-12    Sections 2055.152 and 2055.153 of the electronic government
12-13    projects:
12-14                      (A)  that are managed by the office under Chapter
12-15    2055; and
12-16                      (B)  that are not yet managed by the office under
12-17    Chapter 2055, but have been selected for management under Chapter
12-18    2055.
12-19          SECTION 1.03.  REPORT ON STRATEGIC AND BIENNIAL OPERATING
12-20    PLANS.  Not later than November 1, 2001, the Electronic Government
12-21    Program Management Office shall complete its recommendations on
12-22    modifying instructions based on the initial review conducted under
12-23    Section 2055.152, Government Code, as added by this article.
12-24          SECTION 1.04.  APPOINTMENT OF LEGISLATIVE OVERSIGHT
12-25    COMMITTEE.  Not later than November 15, 2001, the members of the
12-26    Legislative Oversight Committee for Electronic Government Projects
 13-1    created under Section 2055.106, Government Code, as added by this
 13-2    article, must be designated under that section.
 13-3          SECTION 1.05.  APPOINTMENT OF ELECTRONIC GOVERNMENT PROGRAM
 13-4    MANAGEMENT OFFICE ADVISORY COMMITTEE.  Not later than January 15,
 13-5    2002, the governing board of the Department of Information
 13-6    Resources shall appoint the members of the Electronic Government
 13-7    Program Management Office Advisory Committee, as provided by
 13-8    Section 2055.151, Government Code, as added by this article.
 13-9          SECTION 1.06.  ADOPTION OF RULES.  Not later than May 31,
13-10    2002, the Department of Information Resources shall adopt the rules
13-11    required by Sections 2055.101 and 2055.102, Government Code, as
13-12    added by this article.
13-13          SECTION 1.07.  PLAN.  (a)  Not later than September 1, 2002,
13-14    the Electronic Government Program Management Office shall complete
13-15    the plan required under Section 2055.105, Government Code, as added
13-16    by this article.  The plan must outline the recommendations and
13-17    resources necessary to further develop and implement the Internet
13-18    services provided under that section.
13-19          (b)  The business permit office of the Texas Department of
13-20    Economic Development and any other affected state agencies shall
13-21    assist the Electronic Government Program Management Office in
13-22    developing the plan.
13-23          SECTION 1.08.  FUNDING DATE.  Subsection (c), Section
13-24    2055.101, Government Code, as added by this article, applies only
13-25    to projects to be funded after September 1, 2003.
 14-1                          ARTICLE 2.  TEXASONLINE
 14-2          SECTION 2.01.  AMENDMENT OF DEFINITIONS.  Section 2054.003,
 14-3    Government Code, is amended to read as follows:
 14-4          Sec. 2054.003.  DEFINITIONS.  In this chapter:
 14-5                (1)  "Application" means a separately identifiable and
 14-6    interrelated set of information resources technologies that allows
 14-7    a state agency to manipulate information resources to support
 14-8    specifically defined objectives.
 14-9                (2)  "Board" means the governing board of the
14-10    Department of Information Resources.
14-11                (3)  "Data processing" means information technology
14-12    equipment and related services designed for the automated storage,
14-13    manipulation, and retrieval of data by electronic or mechanical
14-14    means.  The term includes:
14-15                      (A)  central processing units, front-end
14-16    processing units, miniprocessors, microprocessors, and related
14-17    peripheral equipment such as data storage devices, document
14-18    scanners, data entry equipment, terminal controllers, data terminal
14-19    equipment, computer-based word processing systems other than memory
14-20    typewriters, and equipment and systems for computer networks;
14-21                      (B)  all related services, including feasibility
14-22    studies, systems design, software development, and time-sharing
14-23    services, provided by state employees or others; and
14-24                      (C)  the programs and routines used to employ and
14-25    control the capabilities of data processing hardware, including
14-26    operating systems, compilers, assemblers, utilities, library
 15-1    routines, maintenance routines, applications, and computer
 15-2    networking programs.
 15-3                (4)  "Department" means the Department of Information
 15-4    Resources.
 15-5                (5)  "Electronic government project" means the use of
 15-6    information technology to improve the access to and delivery of a
 15-7    government service, including a project that uses the Internet as a
 15-8    primary tool for the delivery of a government service or
 15-9    performance of a governmental function.
15-10                (6)  "Executive director" means the executive director
15-11    of the Department of Information Resources.
15-12                (7) [(6)]  "Information resources" means the
15-13    procedures, equipment, and software that are employed, designed,
15-14    built, operated, and maintained to collect, record, process, store,
15-15    retrieve, display, and transmit information, and associated
15-16    personnel including consultants and contractors.
15-17                (8) [(7)]  "Information resources technologies" means
15-18    data processing and telecommunications hardware, software,
15-19    services, supplies, personnel, facility resources, maintenance, and
15-20    training.
15-21                (9)  "Local government" means a county, municipality,
15-22    special district, school district, junior college district, or
15-23    other political subdivision of the state.
15-24                (10)  "Program management office" means the Electronic
15-25    Government Program Management Office created by the department
15-26    under Chapter 2055 to manage projects.
 16-1                (11) [(8)]  "Project" means a program to provide
 16-2    information resources technologies support to functions within or
 16-3    among elements of a state agency, that ideally is characterized by
 16-4    well-defined parameters, specific objectives, common benefits,
 16-5    planned activities, a scheduled completion date, and an established
 16-6    budget with a specified source of funding.
 16-7                (12) [(9)]  "State agency" means a department,
 16-8    commission, board, office, council, authority, or other agency in
 16-9    the executive or judicial branch of state government that is
16-10    created by the constitution or a statute of this state, including a
16-11    university system or institution of higher education as defined by
16-12    Section 61.003, Education Code.
16-13                (13) [(10)]  "Telecommunications" means any
16-14    transmission, emission, or reception of signs, signals, writings,
16-15    images, or sounds of intelligence of any nature by wire, radio,
16-16    optical, or other electromagnetic systems.  The term includes all
16-17    facilities and equipment performing those functions that are owned,
16-18    leased, or used by state agencies and branches of state government.
16-19                (14)  "TexasOnline" means the electronic government
16-20    project or its successor project implemented under Section 2054.062
16-21    or its successor statute.
16-22          SECTION 2.02.  USE OF TEXASONLINE.  Subchapter F, Chapter
16-23    2054, Government Code, is amended by adding Section 2054.113 to
16-24    read as follows:
16-25          Sec. 2054.113.  DUPLICATION WITH TEXASONLINE.  (a)  This
16-26    section does not apply to a state agency that is a university
 17-1    system or institution of higher education as defined by Section
 17-2    61.003, Education Code.
 17-3          (b)  A state agency may not duplicate an infrastructure
 17-4    component of TexasOnline unless the program management office
 17-5    approves the duplication.  In this subsection, "infrastructure"
 17-6    does not include the development of applications, and the
 17-7    supporting platform, for electronic government projects.
 17-8          SECTION 2.03.  TEXASONLINE GRANT PROGRAM.  Chapter 2054,
 17-9    Government Code, is amended by adding Subchapter J to read as
17-10    follows:
17-11                 SUBCHAPTER J.  TEXASONLINE GRANT PROGRAM
17-12          Sec. 2054.301.  CREATION.  The TexasOnline grant program is
17-13    created to enable counties, municipalities, and school districts to
17-14    provide electronic government services through TexasOnline.
17-15          Sec. 2054.302.  MANAGEMENT.  The program management office
17-16    shall:
17-17                (1)  manage the TexasOnline grant program;
17-18                (2)  establish specific criteria and processes for
17-19    selecting counties, municipalities, and school districts to
17-20    participate in the grant program;
17-21                (3)  develop a cost methodology to minimize the amount
17-22    smaller governmental entities must pay for maintenance of services
17-23    through TexasOnline; and
17-24                (4)  explore opportunities with the Telecommunications
17-25    Infrastructure Fund Board to develop automatic eligibility or a
17-26    streamlined grant application process for applicants for
 18-1    collaborative community networking grants.
 18-2          Sec. 2054.303.  PREFERENCE FOR DISTRIBUTION OF GRANT MONEY.
 18-3    In determining the distribution of grant money under this
 18-4    subchapter, the department shall prefer counties, municipalities,
 18-5    and school districts located in a strategic investment area, as
 18-6    defined by Section 171.721, Tax Code.
 18-7          Sec. 2054.304.  CONDITIONS.  As a condition of receiving a
 18-8    grant under this subchapter, a grant recipient must agree to
 18-9    maintain online services after the grant period terminates.  The
18-10    department and the grant recipient must negotiate and agree on the
18-11    conditions of the grant, including the length of time required for
18-12    maintenance of online services after the grant period ends.
18-13          Sec. 2054.305.  USE OF GRANT MONEY.  (a)  Grant money may be
18-14    used only to:
18-15                (1)  pay start-up costs incurred by the use of
18-16    TexasOnline;
18-17                (2)  pay for the design and maintenance of websites and
18-18    other online services with program offerings designed to benefit
18-19    counties, municipalities, and school districts through TexasOnline;
18-20    or
18-21                (3)  develop, deploy, and maintain information
18-22    technology systems to provide governmental services through
18-23    TexasOnline.
18-24          (b)  Grant money may not be used to pay for communications
18-25    links to public or private telecommunication systems, such as the
18-26    state's public telecommunications network or for Internet service
 19-1    provider costs.
 19-2          Sec. 2054.306.  EXPIRATION.  This subchapter expires
 19-3    September 1, 2003.
 19-4          SECTION 2.04.  FUNDING CONTINGENCY.  The provisions in
 19-5    Article 2 of this Act apply to the extent that funds are
 19-6    specifically appropriated for the purpose of Article 2 of this Act.
 19-7                          ARTICLE 3.  PROCUREMENT
 19-8          SECTION 3.01.  Chapter 2177, Government Code, is amended by
 19-9    adding Section 2177.0001 to read as follows:
19-10          Sec. 2177.0001.  DEFINITIONS.  In this chapter:
19-11                (1)  "Institution of higher education" has the meaning
19-12    assigned by Section 61.003, Education Code.
19-13                (2)  "Political subdivision" includes a school
19-14    district.
19-15                (3)  "State agency" has the meaning assigned by Section
19-16    2054.003, except that the term does not include a university system
19-17    or institution of higher education.
19-18          SECTION 3.02.  Chapter 2177, Government Code, is amended by
19-19    adding Section 2177.005 to read as follows:
19-20          Sec. 2177.005.  APPLICABILITY TO INSTITUTIONS OF HIGHER
19-21    EDUCATION.  An institution of higher education may, but is not
19-22    required to, participate in any electronic system established under
19-23    this chapter.
19-24          ARTICLE 4.  MISCELLANEOUS INFORMATION RESOURCES ISSUES
19-25          SECTION 4.01.  CHIEF INFORMATION OFFICER.  Subchapter B,
19-26    Chapter 2054, Government Code, is amended by adding Section
 20-1    2054.0285 and amending Section 2054.029 to read as follows:
 20-2          Sec. 2054.0285.  EXECUTIVE DIRECTOR:  CHIEF INFORMATION
 20-3    OFFICER; POWERS AND DUTIES.  (a)  The board shall employ an
 20-4    executive director.  The executive director is the chief
 20-5    information officer for Texas state government.
 20-6          (b)  The executive director has authority for all aspects of
 20-7    information technology for state agencies, including:
 20-8                (1)  the use of technology to support state goals;
 20-9                (2)  functional support to state agencies;
20-10                (3)  technology purchases;
20-11                (4)  deployment of new technology;
20-12                (5)  delivery of technology services; and
20-13                (6)  provision of leadership on technology issues.
20-14          Sec. 2054.029.  [EXECUTIVE DIRECTOR;] STAFF; SEPARATION OF
20-15    RESPONSIBILITIES.  (a)  The board shall employ [an executive
20-16    director and other] employees necessary to implement its duties.
20-17          (b)  The executive director or the executive director's
20-18    designee shall provide to members of the board and to the
20-19    department's employees, as often as necessary, information
20-20    regarding their qualifications for office or employment under this
20-21    chapter and their responsibilities under applicable laws relating
20-22    to standards of conduct for state officers or employees.
20-23          (c)  The board shall develop and implement policies that
20-24    clearly separate the policymaking responsibilities of the board and
20-25    the management responsibilities of the executive director and the
20-26    staff of the department.
 21-1          SECTION 4.02.  VENDOR INCENTIVES.  Subchapter C, Chapter
 21-2    2054, Government Code, is amended by adding Section 2054.058 to
 21-3    read as follows:
 21-4          Sec. 2054.058.  CONSIDERATION OF VENDOR INCENTIVES.  When
 21-5    contracting with a vendor to perform a task related to an
 21-6    electronic government project, the department shall consider
 21-7    methods of payments, including considering whether a percentage of
 21-8    money to be saved could be used to provide an incentive to the
 21-9    vendor to complete the project on time and under budget.
21-10          SECTION 4.03.  PUBLIC INFORMATION EXCEPTION.  Subchapter C,
21-11    Chapter 552, Government Code, is amended by adding Section 552.136
21-12    to read as follows:
21-13          Sec. 552.136.  EXCEPTION:  GOVERNMENT INFORMATION RELATED TO
21-14    SECURITY ISSUES FOR COMPUTERS.  (a)  Information is excepted from
21-15    the requirements of Section 552.021 if it is information that
21-16    relates to computer network security or to the design, operation,
21-17    or defense of a computer network.
21-18          (b)  The following information is confidential:
21-19                (1)  a computer network vulnerability report; and
21-20                (2)  any other assessment of the extent to which data
21-21    processing operations, a computer, or a computer program, network,
21-22    system, or software of a governmental body or of a contractor of a
21-23    governmental body is vulnerable to unauthorized access or harm,
21-24    including an assessment of the extent to which the governmental
21-25    body's or contractor's electronically stored information is
21-26    vulnerable to alteration, damage, or erasure.
 22-1          SECTION 4.04.  TEXASONLINE DIVISION.  Subchapter I, Chapter
 22-2    2054, Government Code, as added by Senate Bill No. 187, Acts of the
 22-3    77th Legislature, Regular Session, 2001, is amended by adding
 22-4    Section 2054.2645 to read as follows:
 22-5          Sec. 2054.2645.  SUNSET PROVISION.  The division is subject
 22-6    to Chapter 325 (Texas Sunset Act).  Unless continued in existence
 22-7    as provided by that chapter, the division is abolished September 1,
 22-8    2005.
 22-9          SECTION 4.05.  ELECTRONIC GRANTS MANAGEMENT SYSTEM.  (a)  The
22-10    Department of Information Resources shall study the costs and
22-11    benefits of establishing an electronic grants management system for
22-12    state grant programs.
22-13          (b)  The Department of Information Resources may develop a
22-14    plan for, and implement, an electronic grants management system for
22-15    programs that would receive the greatest benefit from the system.
22-16          SECTION 4.06.  SPECIFICATIONS FOR ELECTRONIC DATA
22-17    CLEARINGHOUSE.  Not later than January 1, 2003, the Department of
22-18    Information Resources, in coordination with the comptroller of
22-19    public accounts and other state agencies, local governments,
22-20    federal agencies, the Texas Conference of Urban Counties, the Texas
22-21    Association of Counties, and the Texas Municipal League, shall
22-22    develop specifications, including procedures and implementation
22-23    methods, for a statewide electronic data clearinghouse.  The
22-24    Department of Information Resources shall identify ways to
22-25    streamline and reduce reporting requirements on counties and
22-26    municipalities, when practical, through implementation of the
 23-1    clearinghouse.
 23-2     ARTICLE 5.  COMPTROLLER PROVISIONS ON USE OF ADVANCED EQUIPMENT,
 23-3          DATABASES, AND DELEGATION OF TASKS TO OUTSIDE PERSONNEL
 23-4          SECTION 5.01.  ADVANCED DATABASE FOR AUDITS.  Subchapter A,
 23-5    Chapter 111, Tax Code, is amended by adding Section 111.0034 to
 23-6    read as follows:
 23-7          Sec. 111.0034.  ADVANCED DATABASE SYSTEM FOR AUDITS.
 23-8    (a)  The comptroller shall develop an advanced electronic audit
 23-9    database system for use by the comptroller's audit division.  The
23-10    system must:
23-11                (1)  centralize management of audit transaction data;
23-12                (2)  enhance the quality control of data; and
23-13                (3)  be compatible with other data systems of the
23-14    state.
23-15          (b)  The comptroller may contract with a vendor to develop or
23-16    implement the system.
23-17          (c)  If the comptroller contracts with a vendor to develop or
23-18    implement the system, the comptroller must protect any confidential
23-19    information provided to the vendor.  A person who receives
23-20    confidential information under this section and each employee or
23-21    agent of that person is subject to the same prohibitions against
23-22    disclosure of the information, and the same penalties and sanctions
23-23    for improper disclosure, that apply to the comptroller.
23-24          SECTION 5.02.  ADVANCED DATABASE FOR TAX COLLECTIONS.  The
23-25    heading for Section 111.0035, Tax Code, is amended to read as
23-26    follows:
 24-1          Sec. 111.0035.  ADVANCED DATABASE SYSTEM FOR TAX COLLECTIONS.
 24-2          SECTION 5.03.  OUTSIDE PERSONNEL.  Subchapter A, Chapter 111,
 24-3    Tax Code, is amended by adding Section 111.0045 to read as follows:
 24-4          Sec. 111.0045.  USE OF OUTSIDE PERSONNEL; DELEGATION OF
 24-5    POWERS.  (a)  As necessary to enhance productivity, the comptroller
 24-6    may employ or contract for the services of accountants, assistants,
 24-7    auditors, clerks, information technology specialists, and
 24-8    investigators to:
 24-9                (1)  provide or use the equipment acquired under
24-10    Subchapter G; and
24-11                (2)  assist with the administration of this code.
24-12          (b)  The comptroller may delegate to persons employed or
24-13    contracted under this section the power to perform duties as
24-14    required.
24-15          SECTION 5.04.  ADVANCED EQUIPMENT.  Chapter 111, Tax Code, is
24-16    amended by adding Subchapter G to read as follows:
24-17               SUBCHAPTER G.  ADVANCED TECHNOLOGY EQUIPMENT
24-18          Sec. 111.351.  WIRELESS EQUIPMENT FOR AUDITORS.  The
24-19    comptroller shall acquire wireless communication equipment for use
24-20    by its auditors, including wireless modems for laptop computers for
24-21    high-speed, wireless access to comptroller systems.
24-22          Sec. 111.352.  COMPUTER AND WIRELESS EQUIPMENT FOR
24-23    ENFORCEMENT STAFF.  (a)  The comptroller shall acquire portable
24-24    computers with remote or wireless communications equipment for use
24-25    by its enforcement staff.
24-26          (b)  The portable computers acquired under this section must
 25-1    be integrated with an electronic signature capturing system and
 25-2    portable printing capabilities to enhance the security of
 25-3    collections made under this chapter.
 25-4          (c)  The equipment must enable enforcement staff to:
 25-5                (1)  verify taxpayer claims;
 25-6                (2)  update taxpayer information from the field; and
 25-7                (3)  facilitate account updates.
 25-8          Sec. 111.353.  ADVANCED SCANNERS FOR FIELD OFFICES.  The
 25-9    comptroller shall acquire advanced scanners for its field offices.
25-10    The scanners must enable enforcement officers to scan enforcement
25-11    data directly into comptroller databases without requiring later
25-12    manual entry.
25-13       ARTICLE 6.  TRANSFER OF DATA PROCESSING EQUIPMENT TO STUDENTS
25-14          SECTION 6.01.  Chapter 32, Education Code, is amended by
25-15    adding Subchapter C to read as follows:
25-16     SUBCHAPTER C.  TRANSFER OF DATA PROCESSING EQUIPMENT TO STUDENTS
25-17          Sec. 32.101.  DEFINITION.  In this subchapter, "data
25-18    processing" has the meaning assigned by Section 2054.003,
25-19    Government Code.
25-20          Sec. 32.102.  AUTHORITY.  (a)  As provided by this
25-21    subchapter, a school district or open-enrollment charter school may
25-22    transfer to a student enrolled in the district or school:
25-23                (1)  any data processing equipment donated to the
25-24    district or school, including equipment donated by:
25-25                      (A)  a private donor; or
25-26                      (B)  a state eleemosynary institution or a state
 26-1    agency under Section 2175.126, Government Code;
 26-2                (2)  any equipment purchased by the district or school,
 26-3    to the extent consistent with Section 32.105; and
 26-4                (3)  any surplus or salvage equipment owned by the
 26-5    district or school.
 26-6          (b)  A school district or open-enrollment charter school may
 26-7    accept:
 26-8                (1)  donations of data processing equipment for
 26-9    transfer under this subchapter; and
26-10                (2)  any gifts, grants, or donations of money or
26-11    services to purchase, refurbish, or repair data processing
26-12    equipment under this subchapter.
26-13          Sec. 32.103.  ELIGIBILITY; PREFERENCE.  (a)  A student is
26-14    eligible to receive data processing equipment under this subchapter
26-15    only if the student does not otherwise have home access to data
26-16    processing equipment, as determined by the student's school
26-17    district or open-enrollment charter school.
26-18          (b)  In transferring data processing equipment to students, a
26-19    school district or open-enrollment charter school shall give
26-20    preference to educationally disadvantaged students.
26-21          Sec. 32.104.  REQUIREMENTS FOR TRANSFER.  Before transferring
26-22    data processing equipment to a student, a school district or
26-23    open-enrollment charter school must:
26-24                (1)  adopt rules governing transfers under this
26-25    subchapter, including provisions for technical assistance to the
26-26    student by the district or school;
 27-1                (2)  determine that the transfer serves a public
 27-2    purpose and benefits the district or school; and
 27-3                (3)  remove from the equipment any offensive,
 27-4    confidential, or proprietary information, as determined by the
 27-5    district or school.
 27-6          Sec. 32.105.  EXPENDITURE OF PUBLIC FUNDS.  A school district
 27-7    or open-enrollment charter school may spend public funds to:
 27-8                (1)  purchase, refurbish, or repair any data processing
 27-9    equipment transferred to a student under this subchapter; and
27-10                (2)  store, transport, or transfer data processing
27-11    equipment under this subchapter.
27-12          Sec. 32.106.  RETURN OF EQUIPMENT.  (a)  Except as provided
27-13    by Subsection (b), a student who receives data processing equipment
27-14    from a school district or open-enrollment charter school under this
27-15    subchapter shall return the equipment to the district or school not
27-16    later than the earliest of:
27-17                (1)  five years after the date the student receives the
27-18    equipment;
27-19                (2)  the date the student graduates;
27-20                (3)  the date the student transfers to another school
27-21    district or open-enrollment charter school; or
27-22                (4)  the date the student withdraws from school.
27-23          (b)  Subsection (a) does not apply if, at the time the
27-24    student is required to return the data processing equipment under
27-25    that subsection, the district or school determines that the
27-26    equipment has no marketable value.
 28-1          SECTION 6.02.  Section 2175.126, Government Code, is amended
 28-2    to read as follows:
 28-3          Sec. 2175.126.  DISPOSITION OF DATA PROCESSING EQUIPMENT.
 28-4    (a)  If a disposition of a state agency's surplus or salvage data
 28-5    processing equipment is not made under this subchapter, the state
 28-6    agency shall transfer the equipment to a school district or
 28-7    open-enrollment charter school in this state under Subchapter C,
 28-8    Chapter 32, Education Code, or to the Texas Department of Criminal
 28-9    Justice.  The state agency may not collect a fee or other
28-10    reimbursement from the district, the school, or the Texas
28-11    Department of Criminal Justice for the surplus or salvage data
28-12    processing equipment.
28-13          (b)  If a disposition of the surplus or salvage data
28-14    processing equipment of a state eleemosynary institution or an
28-15    institution or agency of higher education is not made under other
28-16    law, the institution or agency shall transfer the equipment to a
28-17    school district or open-enrollment charter school in this state
28-18    under Subchapter C, Chapter 32, Education Code, or to the Texas
28-19    Department of Criminal Justice.  The institution or agency may not
28-20    collect a fee or other reimbursement from the district, the school,
28-21    or the Texas Department of Criminal Justice for the surplus or
28-22    salvage data processing equipment.
28-23             ARTICLE 7.  EXCEPTIONS TO PUBLIC INFORMATION ACT
28-24          SECTION 7.01.  Section 552.104, Government Code, is amended
28-25    to read as follows:
28-26          Sec. 552.104.  EXCEPTION:  INFORMATION RELATED TO COMPETITION
 29-1    OR BIDDING.  (a)  Information is excepted from the requirements of
 29-2    Section 552.021 if it is information that, if released, would give
 29-3    advantage to a competitor or bidder.
 29-4          (b)  The requirement of Section 552.022 that a category of
 29-5    information listed under Section 552.022(a) is public information
 29-6    and not excepted from required disclosure under this chapter unless
 29-7    expressly confidential under law does not apply to information that
 29-8    is excepted from required disclosure under this section.
 29-9          SECTION 7.02.  Section 552.131, Government Code, as added by
29-10    Chapter 405, Acts of the 76th Legislature, Regular Session, 1999,
29-11    is amended by adding Subsection (d) to read as follows:
29-12          (d)  The requirement of Section 552.022 that a category of
29-13    information listed under Section 552.022(a) is public information
29-14    and not excepted from required disclosure under this chapter unless
29-15    expressly confidential under law does not apply to information that
29-16    is excepted from required disclosure under this section.
29-17          SECTION 7.03.  The changes in law made in Sections 552.104
29-18    and 552.131, Government Code, by this article apply only to
29-19    information in the possession of a governmental body or to which
29-20    the governmental body has a right of access on or after the
29-21    effective date of this Act, without regard to the date on which the
29-22    governmental body first possessed or first obtained a right of
29-23    access to the information.
29-24               ARTICLE 8.  CONTRACT CLAIMS AGAINST THE STATE
29-25          SECTION 8.01.  Subsection (a), Section 2260.003, Government
29-26    Code, is amended to read as follows:
 30-1          (a)  The total amount of money recoverable on a claim for
 30-2    breach of contract under this chapter may not, after deducting the
 30-3    amount specified in Subsection (b), exceed an amount equal to the
 30-4    sum of:
 30-5                (1)  the balance due and owing on the contract price;
 30-6    and
 30-7                (2)  the amount or fair market value of orders or
 30-8    requests[, including orders] for additional work made by a unit of
 30-9    state government to the extent that the orders or requests for
30-10    additional work were actually performed.
30-11          SECTION 8.02.  Section 2260.005, Government Code, is amended
30-12    to read as follows:
30-13          Sec. 2260.005.  EXCLUSIVE PROCEDURE.  Subject to Section
30-14    2260.007, the [The] procedures contained in this chapter are
30-15    exclusive and required prerequisites to suit in accordance with
30-16    Chapter 107, Civil Practice and Remedies Code.
30-17          SECTION 8.03.  Subchapter A, Chapter 2260, Government Code,
30-18    is amended by adding Section 2260.007 to read as follows:
30-19          Sec. 2260.007.  LEGISLATIVE AUTHORITY RETAINED;
30-20    INTERPRETATION OF CHAPTER.  (a)  The legislature retains the
30-21    authority to deny or grant a waiver of immunity to suit against a
30-22    unit of state government by statute, resolution, or any other means
30-23    the legislature may determine appropriate.
30-24          (b)  This chapter does not:
30-25                (1)  divest the legislature of the authority to grant
30-26    permission to sue a unit of state government under terms that the
 31-1    legislature may specify in the measure granting the permission;
 31-2                (2)  require that the legislature, in granting or
 31-3    denying permission to sue a unit of state government, comply with
 31-4    this chapter; or
 31-5                (3)  limit the effect of a legislative grant of
 31-6    permission to sue a unit of state government unless the grant
 31-7    itself provides that this chapter may have that effect.
 31-8          SECTION 8.04.  (a)  Except as provided in Subsection (b), the
 31-9    changes in law made to Chapter 2260, Government Code, by this
31-10    article apply only to a contract executed on or after the effective
31-11    date of this Act.  A contract executed before the effective date of
31-12    this Act is governed by the law applicable to the contract
31-13    immediately before the effective date of this Act, and that law is
31-14    continued in effect for that purpose.
31-15          (b)  A waiver of sovereign immunity to a suit granted by a
31-16    concurrent resolution passed by the 77th Legislature that applies
31-17    to a contract entered into before the effective date of this Act is
31-18    effective according to its terms.
31-19               ARTICLE 9.  CONTRACTS FOR REMOVAL OF PROPERTY
31-20          SECTION 9.01.  Subchapter B, Chapter 472, Transportation
31-21    Code, is amended by adding Section 472.015 to read as follows:
31-22          Sec. 472.015.  CONTRACTS FOR REMOVAL OF PROPERTY.  In
31-23    contracting with a private business or businesses for the removal
31-24    of personal property from the right-of-way or roadway of the state
31-25    highway system, the department may:
31-26                (1)  use a purchasing method described in Chapter 2156,
 32-1    Government Code;
 32-2                (2)  include the removal work in a contract entered
 32-3    into under Chapter 223; or
 32-4                (3)  select a business or businesses based on an
 32-5    evaluation of the experience of the business and the price and
 32-6    quality of the business's equipment and services.
 32-7                        ARTICLE 10.  EFFECTIVE DATE
 32-8          SECTION 10.01.  EFFECTIVE DATE.  This Act takes effect
 32-9    immediately if it receives a vote of two-thirds of all the members
32-10    elected to each house, as provided by Section 39, Article III,
32-11    Texas Constitution.  If this Act does not receive the vote
32-12    necessary for immediate effect, this Act takes effect September 1,
32-13    2001.
                                                               S.B. No. 1458
            _______________________________     _______________________________
                President of the Senate              Speaker of the House
                  I hereby certify that S.B. No. 1458 passed the Senate on
            May 3, 2001, by the following vote:  Yeas 30, Nays 0, one present
            not voting; May 25, 2001, Senate refused to concur in House
            amendments and requested appointment of Conference Committee;
            May 25, 2001, House granted request of the Senate; May 27, 2001,
            Senate adopted Conference Committee Report by the following vote:
            Yeas 30, Nays 0, one present not voting.
                                                _______________________________
                                                    Secretary of the Senate
                  I hereby certify that S.B. No. 1458 passed the House, with
            amendments, on May 23, 2001, by a non-record vote; May 25, 2001,
            House granted request of the Senate for appointment of Conference
            Committee; May 27, 2001, House adopted Conference Committee Report
            by the following vote:  Yeas 144, Nays 0, one present not voting.
                                                _______________________________
                                                    Chief Clerk of the House
            Approved:
            _______________________________
                         Date
            _______________________________
                       Governor