By:  Duncan, Shapleigh                                S.B. No. 1458
                                A BILL TO BE ENTITLED
 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 OFFICE
 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             (Sections 2055.003-2055.050 reserved for expansion
2-14                  SUBCHAPTER B.  PROGRAM MANAGEMENT OFFICE
2-15           Sec. 2055.051.  CREATION.  The department shall create an
2-16     Electronic Government Program Management Office to direct and
2-17     facilitate the implementation of electronic government projects
2-18     selected under this chapter.
2-19           Sec. 2055.052.  GENERAL POWERS AND DUTIES.  The office shall:
2-20                 (1)  establish and support standard business practices
2-21     for electronic government projects;
2-22                 (2)  coordinate and establish standards for
2-23     implementation of electronic government projects;
2-24                 (3)  identify and incorporate best practices for
2-25     electronic government projects in such areas as:
2-26                       (A)  the procurement of hardware, software, and
 3-1     technology services;
 3-2                       (B)  project support;
 3-3                       (C)  implementation strategies;
 3-4                       (D)  project planning and scheduling;
 3-5                       (E)  quality assurance;
 3-6                       (F)  overall team coordination;
 3-7                       (G)  status reporting; and
 3-8                       (H)  technical standards; and
 3-9                 (4)  provide risk management and quality assurance
3-10     services for electronic government projects.
3-11           Sec. 2055.053.  LOCAL GOVERNMENT AND FEDERAL PROJECTS.  The
3-12     office may coordinate electronic government projects involving:
3-13                 (1)  local government; or
3-14                 (2)  the federal government.
3-15           Sec. 2055.054.  COORDINATION AMONG STATE AGENCIES; APPROVAL
3-16     OF SPENDING.  (a)  In coordination with the Legislative Budget
3-17     Board and the comptroller, the office shall:
3-18                 (1)  identify the resources necessary for projects and
3-19     opportunities among multiple state agencies for the coordination of
3-20     electronic government projects; and
3-21                 (2)  approve spending of money for electronic
3-22     government projects by affected state agencies under Section
3-23     2055.101.
3-24           (b)  The office shall create state agency coordination teams,
3-25     as appropriate, to reduce information technology expenditures and
3-26     eliminate unnecessary duplication.
 4-1           Sec. 2055.055.  COOPERATION; STANDARDS.  (a)  A state agency
 4-2     shall:
 4-3                 (1)  cooperate with the department and the office
 4-4     regarding electronic government projects; and
 4-5                 (2)  provide to the department, as often as may be
 4-6     required and in the format required by the department, all
 4-7     information required by the department under this chapter that has
 4-8     not already been submitted to the department.
 4-9           (b)  In requesting cooperation from a state agency under this
4-10     section, the department shall consider the necessity of the request
4-11     as well as the cost to the agency in time and resources.
4-12           (c)  The office shall establish standards for state agencies
4-13     to follow in implementing selected electronic government projects
4-14     to ensure maximum savings through cooperation among agencies.
4-15           Sec. 2055.056.  QUALITY ASSURANCE.  In coordination with the
4-16     state auditor, the Legislative Budget Board, and the affected state
4-17     agency, the office shall provide quality assurance services to
4-18     monitor electronic government projects selected under Section
4-19     2055.101.
4-20           Sec. 2055.057.  FUNDING FOR PROGRAM MANAGEMENT OFFICE.
4-21     (a)  In coordination with the comptroller, Governor's Office of
4-22     Budget and Planning, state auditor, and Legislative Budget Board,
4-23     the office shall develop a model for funding the office from a
4-24     portion of the money appropriated for projects selected under
4-25     Section 2055.101, including staff necessary for the office.  The
4-26     office shall submit the model for approval by the governor and
 5-1     adoption by the department as a rule.
 5-2           (b)  Each state agency that has an electronic government
 5-3     project selected under Section 2055.101 shall enter into an
 5-4     agreement with the department under Chapter 771 to provide
 5-5     reimbursement to the department for the services of the office
 5-6     according to the model established under Subsection (a).
 5-7           Sec. 2055.058.  TEXASONLINE.  (a)  The division of the
 5-8     department with responsibility for TexasOnline shall coordinate the
 5-9     ongoing development of TexasOnline with the office.
5-10           (b)  The office shall promote the use of TexasOnline by state
5-11     agencies.
5-12           Sec. 2055.059.  USE OF WEST TEXAS DISASTER RECOVERY AND
5-13     OPERATIONS CENTER.  (a)  In this section, "center" means the West
5-14     Texas Disaster Recovery and Operations Center.
5-15           (b)  The office shall use the center for the consolidation of
5-16     data operations and recovery to the extent that using the center
5-17     provides the best value to the state.
5-18           (c)  The office shall serve as the state's primary contact
5-19     with the center regarding the consolidation of data operations and
5-20     recovery.
5-21           (d)  The office shall encourage increased use of the center
5-22     by state agencies.
5-23             (Sections 2055.060-2055.100 reserved for expansion
5-24         SUBCHAPTER C.  MANAGEMENT OF ELECTRONIC GOVERNMENT PROJECTS
5-25           Sec. 2055.101.  SELECTION OF ELECTRONIC GOVERNMENT PROJECTS.
5-26     (a)  The office, in coordination with the governor, state auditor,
 6-1     and Legislative Budget Board, shall develop selection criteria for
 6-2     the type of electronic government projects that require direct
 6-3     oversight by the office.  The criteria must include:
 6-4                 (1)  issues related to interagency cooperation and
 6-5     implementation;
 6-6                 (2)  costs, including reimbursement strategies;
 6-7                 (3)  requirements for authentication and security
 6-8     implications; and
 6-9                 (4)  the state's strategic vision regarding electronic
6-10     government projects.
6-11           (b)  The office shall submit the criteria developed under
6-12     Subsection (a) to the department.  The department shall adopt the
6-13     criteria by rule.
6-14           (c)  Based on any selection criteria adopted under Subsection
6-15     (b) and in coordination with the governor, state auditor, and
6-16     Legislative Budget Board, the office may select proposed or
6-17     existing electronic government projects.
6-18           Sec. 2055.102.  APPEAL OF SELECTION.  (a)  A state agency
6-19     that disagrees with the selection of an electronic government
6-20     project under Section 2055.101 may appeal to the executive director
6-21     of the department.  If the agency disagrees with the executive
6-22     director's decision, the agency may then appeal to the board.  If
6-23     the agency disagrees with the board's decision, the agency may then
6-24     appeal to the governor.  The governor's decision regarding
6-25     selection is final.
6-26           (b)  The department by rule shall adopt appeal procedures.
 7-1           Sec. 2055.103.  USE OF TEXASONLINE.  (a)  To the extent
 7-2     possible, the office shall use TexasOnline for electronic
 7-3     government projects that it manages.
 7-4           (b)  The office shall evaluate current and potential
 7-5     electronic government projects to determine whether they are
 7-6     suitable for TexasOnline.
 7-7           Sec. 2055.104.  SPENDING ON SELECTED ELECTRONIC GOVERNMENT
 7-8     PROJECTS.  (a)  A state agency must receive the approval of the
 7-9     office before the agency may spend or encumber money on an
7-10     electronic government project selected under Section 2055.101.  If
7-11     the agency spends money without the approval of the office, the
7-12     office may recommend to the governor that spending for the project
7-13     be terminated under Section 2055.105.
7-14           (b)  If a state agency disagrees with the office's refusal to
7-15     approve spending under Subsection (a), the agency may appeal to the
7-16     governor.  If the governor agrees with the agency, the office shall
7-17     approve the spending.
7-18           (c)  The office, in coordination with the Legislative Budget
7-19     Board and the comptroller and subject to the approval of the
7-20     Governor's Office of Budget and Planning, shall establish
7-21     procedures for approval of spending under Subsection (a).  The
7-22     procedures must include:
7-23                 (1)  a review of project implementation; and
7-24                 (2)  an assessment of whether the project is meeting
7-25     its objectives and complying with any standards established by the
7-26     department.
 8-1           Sec. 2055.105.  AUTHORITY TO TERMINATE OR REINSTATE SPENDING
 8-2     ON ELECTRONIC GOVERNMENT PROJECTS.  (a)  In coordination with the
 8-3     Legislative Budget Board and the Governor's Office of Budget and
 8-4     Planning, the office shall submit criteria to the department for
 8-5     terminating or reinstating selected electronic government projects.
 8-6     The criteria must consider:
 8-7                 (1)  the state agency's compliance with this chapter;
 8-8                 (2)  the state agency's compliance with department
 8-9     rules;
8-10                 (3)  the success of the project;
8-11                 (4)  the needs of any affected state agencies; and
8-12                 (5)  any changes in technology that affect the project.
8-13           (b)  The department shall adopt the criteria by rule.
8-14           (c)  The office may recommend to the governor that an
8-15     electronic government project selected under Section 2055.101 be
8-16     terminated or temporarily halted if the project fails to meet the
8-17     criteria adopted under Subsection (b).
8-18           (d)  On a recommendation from the office that an electronic
8-19     government project should be terminated or temporarily halted, the
8-20     governor may direct the comptroller to deny the state agency access
8-21     to the agency's appropriations that relate to the development or
8-22     implementation of the electronic government project.  The denial of
8-23     access continues until the governor is satisfied that the
8-24     electronic government project can be implemented efficiently and
8-25     consistently under the criteria for reinstatement established by
8-26     this section.
 9-1           Sec. 2055.106.  ENTERPRISE RESOURCE PLANNING; USE OF OFFICE
 9-2     REQUIRED.  (a)  As used in this section, "enterprise resource
 9-3     planning" includes the administration of an entity's:
 9-4                 (1)  general ledger;
 9-5                 (2)  accounts payable;
 9-6                 (3)  accounts receivable;
 9-7                 (4)  budgeting;
 9-8                 (5)  inventory;
 9-9                 (6)  asset management;
9-10                 (7)  billing;
9-11                 (8)  payroll;
9-12                 (9)  projects;
9-13                 (10)  grants; and
9-14                 (11)  human resources, including performance measures,
9-15     time spent on tasks, and other personnel and labor issues.
9-16           (b)  In coordination with the Health and Human Services
9-17     Commission and the comptroller, the office shall establish
9-18     standards for implementing an electronic government project for
9-19     enterprise resource planning systems in this state.  The standards
9-20     must build on the models developed by the commission.
9-21           (c)  A state agency that chooses to implement or modify an
9-22     electronic government project for an enterprise resource planning
9-23     system must comply with the standards developed by the office under
9-24     this section.
9-25           Sec. 2055.107.  ONLINE SERVICE FOR NEW BUSINESSES.  (a)  The
9-26     office, with assistance from the business permit office of the
 10-1    Texas Department of Economic Development and any other affected
 10-2    state agencies, shall develop and implement a plan for the creation
 10-3    of an electronic government project to provide new businesses in
 10-4    this state a single source for information and permitting.
 10-5          (b)  The project must:
 10-6                (1)  be integrated with TexasOnline; and
 10-7                (2)  provide comprehensive and relevant information for
 10-8    a new business, including:
 10-9                      (A)  steps and information necessary to start a
10-10    new business;
10-11                      (B)  general business regulations;
10-12                      (C)  information on licensing and permitting; and
10-13                      (D)  relevant telephone numbers and Internet
10-14    addresses for seeking further information.
10-15          (c)  The Texas Department of Economic Development, secretary
10-16    of state, Texas Natural Resource Conservation Commission, Texas
10-17    Department of Licensing and Regulation, Texas Department of
10-18    Transportation, comptroller, and any other state agency involved in
10-19    issuing permits to new businesses shall assist the office in the
10-20    development and operation of the project.
10-21          (d)  State agencies shall cooperate with the office to
10-22    structure their procedures to facilitate participation in the
10-23    project.
10-24            (Sections 2055.108-2055.150 reserved for expansion
10-25              SUBCHAPTER D.  LEGISLATIVE OVERSIGHT COMMITTEE
10-26          Sec. 2055.151.  DEFINITION.  In this subchapter, "oversight
 11-1    committee" means the Legislative Oversight Committee for Electronic
 11-2    Government Projects.
 11-3          Sec. 2055.152.  CREATION.  The Legislative Oversight
 11-4    Committee for Electronic Government Projects is created to oversee
 11-5    the establishment of electronic government projects by the office
 11-6    and state agencies.
 11-7          Sec. 2055.153.  MEMBERS.  The oversight committee consists of
 11-8    six members, appointed as follows:
 11-9                (1)  the chair of the house committee on appropriations
11-10    or a member of the committee designated by the chair;
11-11                (2)  the chair of the house committee on state affairs
11-12    or a member of the committee designated by the chair;
11-13                (3)  one member of the house of representatives,
11-14    appointed by the speaker of the house;
11-15                (4)  the chair of the senate committee on finance or a
11-16    member of the committee designated by the chair;
11-17                (5)  the chair of the senate committee on state affairs
11-18    or a member of the committee designated by the chair; and
11-19                (6)  one member of the senate appointed by the
11-20    lieutenant governor.
11-21          Sec. 2055.154.  OFFICERS.  (a)  The oversight committee shall
11-22    annually select a member to serve as presiding officer.
11-23          (b)  The presiding officer shall appoint a vice presiding
11-24    officer from the other house of the legislature.
11-25          Sec. 2055.155.  GENERAL POWERS AND DUTIES.  (a)  The
11-26    oversight committee shall oversee and review the implementation of
 12-1    electronic government projects by:
 12-2                (1)  the office or any other division of the department
 12-3    with responsibilities regarding TexasOnline; and
 12-4                (2)  state agencies, including the state agency with
 12-5    primary responsibility for implementing TexasOnline.
 12-6          (b)  The oversight and review shall include policies related
 12-7    to fiscal matters and the cost-effectiveness of the efforts of the
 12-8    agencies and the office.
 12-9          (c)  The oversight committee shall make recommendations to
12-10    the legislature and the board concerning:
12-11                (1)  best practices regarding information technology
12-12    and electronic government projects, and methods for implementing
12-13    those practices in this state; and
12-14                (2)  changes in legislative technology policy.
12-15          Sec. 2055.156.  TEXASONLINE.  The oversight committee shall
12-16    recommend, to the state agency with primary responsibility for
12-17    implementing TexasOnline, what constitutes the infrastructure of
12-18    TexasOnline.
12-19          Sec. 2055.157.  RESPONSIBILITY FOR REPORTS; BUDGET.  (a)  The
12-20    oversight committee shall make recommendations to the legislature
12-21    based on reports prepared by:
12-22                (1)  the office or any other division of the department
12-23    with responsibilities regarding TexasOnline; and
12-24                (2)  the state agency with primary responsibility for
12-25    implementing TexasOnline.
12-26          (b)  The oversight committee may:
 13-1                (1)  request reports and other information from:
 13-2                      (A)  the board;
 13-3                      (B)  the department;
 13-4                      (C)  the office or any other division of the
 13-5    department with responsibilities regarding TexasOnline; or
 13-6                      (D)  the state agency with primary responsibility
 13-7    for implementing TexasOnline; and
 13-8                (2)  review and comment on the budget for the office or
 13-9    any other division of the department with responsibilities
13-10    regarding TexasOnline.
13-11          Sec. 2055.158.  PUBLIC HEARINGS.  The oversight committee may
13-12    hold public hearings.  The oversight committee may administer oaths
13-13    and issue subpoenas as necessary to compel the attendance of
13-14    witnesses or the production of documents.
13-15          Sec. 2055.159.  ADVISORY COMMITTEES.  The oversight committee
13-16    may appoint advisory committees to make recommendations regarding
13-17    electronic government projects.  In making appointments to an
13-18    advisory committee under this section, the oversight committee may
13-19    include public members, including public members who are experts in
13-20    technology and the implementation of that technology in state
13-21    government.
13-22          Sec. 2055.160.  DEPARTMENT OF INFORMATION RESOURCES.  The
13-23    department shall consider any comments from the oversight committee
13-24    before adopting rules.
13-25          Sec. 2055.161.  STAFF; USE BY LEGISLATURE.  (a)  The
13-26    oversight committee may employ staff necessary to implement its
 14-1    duties.
 14-2          (b)  On request of the oversight committee, the Legislative
 14-3    Budget Board and Texas Legislative Council shall provide staff to
 14-4    the oversight committee.
 14-5          (c)  Any member of the legislature may use staff employed by
 14-6    the oversight committee.
 14-7          Sec. 2055.162.  COOPERATION WITH OTHER STATE AGENCIES.  On
 14-8    request by the oversight committee, a state agency shall cooperate
 14-9    with and assist the oversight committee.
14-10            (Sections 2055.163-2055.200 reserved for expansion
14-11        SUBCHAPTER E.  ADDITIONAL PLANNING, OVERSIGHT, AND REPORTS
14-12          Sec. 2055.201.  ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT
14-13    OFFICE ADVISORY COMMITTEE.  (a)   The board shall create an
14-14    Electronic Government Program Management Office Advisory Committee
14-15    under Section 2054.033 to provide ongoing direction for the
14-16    operation of the office.
14-17          (b)  The board shall appoint not more than 15 members to the
14-18    committee.  The committee must include:
14-19                (1)  one member from a large state agency;
14-20                (2)  one member from a small state agency;
14-21                (3)  one member from a state agency not described by
14-22    Subdivision (1) or (2);
14-23                (4)  one member from a local government;
14-24                (5)  one member from an institution of higher
14-25    education;
14-26                (6)  one member from the comptroller's office;
 15-1                (7)  one member from the governor's office;
 15-2                (8)  one member from the state auditor's office;
 15-3                (9)  one member from the Legislative Budget Board; and
 15-4                (10)  at least two public members, including one member
 15-5    who represents a business.
 15-6          (c)  The committee shall assist the office to:
 15-7                (1)  establish:
 15-8                      (A)  procedures;
 15-9                      (B)  project priorities; and
15-10                      (C)  reporting requirements; and
15-11                (2)  provide:
15-12                      (A)  guidance, direction, and perspective about
15-13    the office's operations; and
15-14                      (B)  recommendations for implementing electronic
15-15    government projects in this state.
15-16          (d)  A governmental member of the committee may be reimbursed
15-17    for expenses only from money available to the governmental entity
15-18    the member represents.
15-19          Sec. 2055.202.  STRATEGIC AND BIENNIAL OPERATING PLANS.  The
15-20    office shall review state agency plans prepared under Sections
15-21    2054.095 and 2054.100 to:
15-22                (1)  identify electronic government projects that
15-23    should be selected by the office for management; and
15-24                (2)  recommend any changes to those plans or the
15-25    instructions for those plans to ensure that electronic government
15-26    projects are consistent with the state strategic plan.
 16-1          Sec. 2055.203.  REPORTS ON ELECTRONIC GOVERNMENT PROJECTS.
 16-2    (a)  In coordination with the quality assurance team of the
 16-3    Legislative Budget Board and the state auditor, the office shall
 16-4    establish a state agency reporting system that requires state
 16-5    agencies to report to the office on:
 16-6                (1)  electronic government projects selected under
 16-7    Section 2055.101 so that the office may effectively monitor those
 16-8    projects; and
 16-9                (2)  all other electronic government projects for that
16-10    agency.
16-11          (b)  The reports established under Subsection (a)(1) must
16-12    include an analysis of:
16-13                (1)  efficiencies achieved by the project;
16-14                (2)  costs and benefits; and
16-15                (3)  the scope of the project, including persons
16-16    affected by the project.
16-17          Sec. 2055.204.  ANNUAL REPORT TO LEGISLATIVE OVERSIGHT
16-18    COMMITTEE.  (a)  Not later than September 1 of each year, the
16-19    office shall report to the Legislative Oversight Committee for
16-20    Electronic Government Projects on the status of the office and the
16-21    electronic government projects managed by the office, including:
16-22                (1)  savings achieved;
16-23                (2)  efficiencies achieved;
16-24                (3)  other potential projects or areas for
16-25    standardization;
16-26                (4)  the services provided by the office;
 17-1                (5)  the cost-effectiveness of the office; and
 17-2                (6)  best practices regarding information technology
 17-3    and electronic government projects, and methods for implementing
 17-4    those practices in this state.
 17-5          (b)  The Legislative Oversight Committee for Electronic
 17-6    Government Projects must review and approve the report before
 17-7    appropriate information may be included in the report proposed
 17-8    under Section 2054.055.
 17-9          SECTION 1.02.  REPORT ON ELECTRONIC GOVERNMENT PROJECTS.
17-10    Subsection (b), Section 2054.055, Government Code, is amended to
17-11    read as follows:
17-12          (b)  The report must:
17-13                (1)  assess the progress made toward meeting the goals
17-14    and objectives of the state strategic plan for information
17-15    resources management;
17-16                (2)  describe major accomplishments of the state or a
17-17    specific state agency in information resources management;
17-18                (3)  describe major problems in information resources
17-19    management confronting the state or a specific state agency;
17-20                (4)  provide a summary of the total expenditures for
17-21    information resources and information resources technologies by the
17-22    state; [and]
17-23                (5)  make recommendations for improving the
17-24    effectiveness and cost-efficiency of the state's use of information
17-25    resources;
17-26                (6)  include a list compiled by the department's
 18-1    program management office from the information gathered under
 18-2    Sections 2055.202 and 2055.203 of the electronic government
 18-3    projects:
 18-4                      (A)  that are managed by the office under Chapter
 18-5    2055; and
 18-6                      (B)  that are not yet managed by the office under
 18-7    Chapter 2055, but have been selected for management under Chapter
 18-8    2055; and
 18-9                (7)  include appropriate information from the report
18-10    prepared under Section 2055.204.
18-11          SECTION 1.03.  REPORT ON STRATEGIC AND BIENNIAL OPERATING
18-12    PLANS.  Not later than November 1, 2001, the Electronic Government
18-13    Program Management Office shall complete its recommendations on
18-14    modifying instructions based on the initial review conducted under
18-15    Section 2055.202, Government Code, as added by this article.
18-16          SECTION 1.04.  APPOINTMENT OF LEGISLATIVE OVERSIGHT
18-17    COMMITTEE.  Not later than November 15, 2001, the members of the
18-18    Legislative Oversight Committee for Electronic Government Projects
18-19    created under Subchapter D, Chapter 2055, Government Code, as added
18-20    by this article, must be designated as provided under Section
18-21    2055.153, Government Code, as added by this article.
18-22          SECTION 1.05.  APPOINTMENT OF ELECTRONIC PROGRAM MANAGEMENT
18-23    OFFICE ADVISORY COMMITTEE.  Not later than January 15, 2002, the
18-24    governing board of the Department of Information Resources shall
18-25    appoint the members of the Electronic Government Program Management
18-26    Office Advisory Committee, as provided by Section 2055.201,
 19-1    Government Code, as added by this article.
 19-2          SECTION 1.06.  ADOPTION OF RULES.  Not later than May 31,
 19-3    2002, the Department of Information Resources shall adopt the rules
 19-4    required by Sections 2055.057, 2055.101, 2055.102, and 2055.105,
 19-5    Government Code, as added by this article.
 19-6          SECTION 1.07.  PLAN.  (a)  Not later than September 1, 2002,
 19-7    the Electronic Government Program Management Office shall complete
 19-8    the plan required under Section 2055.107, Government Code, as added
 19-9    by this article.  The plan must outline the recommendations and
19-10    resources necessary to further develop and implement the Internet
19-11    services provided under that section.
19-12          (b)  The business permit office of the Texas Department of
19-13    Economic Development and any other affected state agencies shall
19-14    assist the Electronic Government Program Management Office in
19-15    developing the plan.
19-16              ARTICLE 2.  CREATION OF SEAT MANAGEMENT OFFICE;
19-17                         STUDY ON SEAT MANAGEMENT
19-18          SECTION 2.01.  SEAT MANAGEMENT.  Chapter 2054, Government
19-19    Code, is amended by adding Subchapter K to read as follows:
19-20                      SUBCHAPTER K.  SEAT MANAGEMENT
19-21          Sec. 2054.351.  DEFINITIONS.  In this subchapter:
19-22                (1)  "Office" means the seat management office created
19-23    under this subchapter.
19-24                (2)  "Seat management" means the seat management method
19-25    described by Section 2054.355(b).
19-26                (3)  "State agency" has the meaning assigned by Section
 20-1    2054.003, except that the term does not include a university system
 20-2    or institution of higher education as defined by Section 61.003,
 20-3    Education Code.
 20-4          Sec. 2054.352.  CREATION.  The department shall create a seat
 20-5    management office to:
 20-6                (1)  conduct and evaluate the study under Section
 20-7    2054.354;
 20-8                (2)  make recommendations under Section 2054.355; and
 20-9                (3)  advise state agencies on seat management issues.
20-10          Sec. 2054.353.  CONSULTATION.  A state agency shall consult
20-11    with the office:
20-12                (1)  before making any decisions regarding seat
20-13    management; and
20-14                (2)  if the agency conducts any studies or other
20-15    analyses regarding seat management.
20-16          Sec. 2054.354.  TOTAL COST OF OWNERSHIP STUDIES.  (a)  The
20-17    department shall select 10 to 12 state agencies to participate in a
20-18    pilot study.  Each agency shall study the total cost of all
20-19    personal computers and related systems used by the agency,
20-20    including both owned and leased systems.  The study must include:
20-21                (1)  direct costs, including costs for hardware,
20-22    software, peripheral equipment, networks, management and support
20-23    labor hours, systems development, and communications; and
20-24                (2)  indirect costs, including computer downtime and
20-25    end-user training, self-teaching, support, and any other costs
20-26    related to the use of the personal computer.
 21-1          (b)  An agency selected under this section shall cooperate
 21-2    with the department in conducting the study.
 21-3          (c)  The department, including the office, on request shall
 21-4    assist a state agency in complying with this section.
 21-5          (d)  Not later than May 1, 2002, each selected state agency
 21-6    shall report on the results of its study to the department.
 21-7          Sec. 2054.355.  STUDY AND RECOMMENDATIONS ON USE OF PRIVATE
 21-8    CONTRACTORS TO IMPLEMENT SEAT MANAGEMENT.  (a)  The office shall
 21-9    analyze the results of the studies under Section 2054.354 to assess
21-10    the feasibility of establishing a statewide seat management system
21-11    at the time the assessment is completed or at a later time.
21-12          (b)  As part of the feasibility study, the office shall
21-13    analyze seat management, through which a state agency transfers its
21-14    personal computer equipment and service responsibilities to a
21-15    private vendor as described by this subsection.  The state agency
21-16    would hire a private vendor to manage the personal computing needs
21-17    for each desktop in a state agency, including all necessary
21-18    hardware, software, and support services.  Under this method, the
21-19    vendor would be responsible for some or all planning, installation,
21-20    configuration, testing, maintenance, repair, upgrading, training,
21-21    project management, asset management, disposal, and other services
21-22    related to the agency's personal computing needs.  Subject to the
21-23    agency's needs and a vendor contract, the vendor selected by the
21-24    agency would satisfy the agency's personal computer needs,
21-25    including:
21-26                (1)  personal computer acquisition and support;
 22-1                (2)  local area networks;
 22-2                (3)  Internet access;
 22-3                (4)  electronic mail;
 22-4                (5)  help-desk support for user questions and
 22-5    maintenance requests;
 22-6                (6)  remote-access needs;
 22-7                (7)  technology upgrades necessary to keep equipment
 22-8    current; and
 22-9                (8)  any other data, voice, and video communication
22-10    needs.
22-11          (c)  The office shall study different types of contracts that
22-12    could be used to implement seat management.
22-13          (d)  Not later than November 1, 2002, the office shall report
22-14    its recommendations to the presiding officer of each house of the
22-15    legislature and to the committees of each house of the legislature
22-16    that have primary oversight jurisdiction over the department.  The
22-17    recommendations must include:
22-18                (1)  whether a statewide seat management plan should be
22-19    implemented;
22-20                (2)  a plan, if seat management implementation is
22-21    recommended under Subdivision (1), to transfer selected state
22-22    agency computer equipment and service responsibilities to private
22-23    vendors;
22-24                (3)  an estimate of implementation costs;
22-25                (4)  an estimate of potential savings due to the
22-26    transfers;
 23-1                (5)  a plan for the office to develop seat management
 23-2    contracts, including the development of a multiple award schedule
 23-3    of contracts for use by state agencies;
 23-4                (6)  procedures for state agencies to:
 23-5                      (A)  follow when a vendor fails to meet the needs
 23-6    of the agency; and
 23-7                      (B)  change to a different vendor; and
 23-8                (7)  proposals to add responsibilities for the office,
 23-9    including the responsibility to:
23-10                      (A)  establish minimum standards for the use of
23-11    seat management by state agencies;
23-12                      (B)  serve as a best practices repository for
23-13    seat management;
23-14                      (C)  develop a guidebook on seat management for
23-15    use by state agencies; and
23-16                      (D)  evaluate and recommend modifications to the
23-17    state's seat management practices.
23-18          Sec. 2054.356.  PERSONAL COMPUTER INVENTORY REPORTING BY
23-19    STATE AGENCIES.  Not later than September 1, 2002, and September 1,
23-20    2003, each state agency shall provide the office with an inventory
23-21    of all personal computers used by that agency as of June 1, 2002,
23-22    and June 1, 2003, respectively.
23-23          Sec. 2054.357.  EXPIRATION.  This subchapter expires
23-24    September 1, 2003.
23-25                          ARTICLE 3.  TEXASONLINE
23-26          SECTION 3.01.  AMENDMENT OF DEFINITIONS.  Section 2054.003,
 24-1    Government Code, is amended to read as follows:
 24-2          Sec. 2054.003.  DEFINITIONS.  In this chapter:
 24-3                (1)  "Application" means a separately identifiable and
 24-4    interrelated set of information resources technologies that allows
 24-5    a state agency to manipulate information resources to support
 24-6    specifically defined objectives.
 24-7                (2)  "Board" means the governing board of the
 24-8    Department of Information Resources.
 24-9                (3)  "Data processing" means information technology
24-10    equipment and related services designed for the automated storage,
24-11    manipulation, and retrieval of data by electronic or mechanical
24-12    means.  The term includes:
24-13                      (A)  central processing units, front-end
24-14    processing units, miniprocessors, microprocessors, and related
24-15    peripheral equipment such as data storage devices, document
24-16    scanners, data entry equipment, terminal controllers, data terminal
24-17    equipment, computer-based word processing systems other than memory
24-18    typewriters, and equipment and systems for computer networks;
24-19                      (B)  all related services, including feasibility
24-20    studies, systems design, software development, and time-sharing
24-21    services, provided by state employees or others; and
24-22                      (C)  the programs and routines used to employ and
24-23    control the capabilities of data processing hardware, including
24-24    operating systems, compilers, assemblers, utilities, library
24-25    routines, maintenance routines, applications, and computer
24-26    networking programs.
 25-1                (4)  "Department" means the Department of Information
 25-2    Resources.
 25-3                (5)  "Electronic government project" means the use of
 25-4    information technology to improve the access to and delivery of a
 25-5    government service, including a project that uses the Internet as a
 25-6    primary tool for the delivery of a government service or
 25-7    performance of a governmental function.
 25-8                (6)  "Executive director" means the executive director
 25-9    of the Department of Information Resources.
25-10                (7) [(6)]  "Information resources" means the
25-11    procedures, equipment, and software that are employed, designed,
25-12    built, operated, and maintained to collect, record, process, store,
25-13    retrieve, display, and transmit information, and associated
25-14    personnel including consultants and contractors.
25-15                (8) [(7)]  "Information resources technologies" means
25-16    data processing and telecommunications hardware, software,
25-17    services, supplies, personnel, facility resources, maintenance, and
25-18    training.
25-19                (9)  "Local government" means a county, municipality,
25-20    special district, school district, junior college district, or
25-21    other political subdivision of the state.
25-22                (10)  "Program management office" means the Electronic
25-23    Government Program Management Office created by the department
25-24    under Chapter 2055 to manage projects.
25-25                (11) [(8)]  "Project" means a program to provide
25-26    information resources technologies support to functions within or
 26-1    among elements of a state agency, that ideally is characterized by
 26-2    well-defined parameters, specific objectives, common benefits,
 26-3    planned activities, a scheduled completion date, and an established
 26-4    budget with a specified source of funding.
 26-5                (12) [(9)]  "State agency" means a department,
 26-6    commission, board, office, council, authority, or other agency in
 26-7    the executive or judicial branch of state government that is
 26-8    created by the constitution or a statute of this state, including a
 26-9    university system or institution of higher education as defined by
26-10    Section 61.003, Education Code.
26-11                (13) [(10)]  "Telecommunications" means any
26-12    transmission, emission, or reception of signs, signals, writings,
26-13    images, or sounds of intelligence of any nature by wire, radio,
26-14    optical, or other electromagnetic systems.  The term includes all
26-15    facilities and equipment performing those functions that are owned,
26-16    leased, or used by state agencies and branches of state government.
26-17                (14)  "TexasOnline" means the electronic government
26-18    project or its successor project implemented under Section 2054.062
26-19    or its successor statute.
26-20          SECTION 3.02.  USE OF TEXASONLINE.  Subchapter F, Chapter
26-21    2054, Government Code, is amended by adding Section 2054.113 to
26-22    read as follows:
26-23          Sec. 2054.113.  DUPLICATION WITH TEXASONLINE.  (a)  This
26-24    section does not apply to a state agency that is a university
26-25    system or institution of higher education as defined by Section
26-26    61.003, Education Code.
 27-1          (b)  A state agency may not duplicate an infrastructure
 27-2    component of TexasOnline unless the program management office
 27-3    approves the duplication.
 27-4          SECTION 3.03.  TEXASONLINE GRANT PROGRAM.  Chapter 2054,
 27-5    Government Code, is amended by adding Subchapter J to read as
 27-6    follows:
 27-7                 SUBCHAPTER J.  TEXASONLINE GRANT PROGRAM
 27-8          Sec. 2054.301.  DEFINITION.  In this subchapter, "oversight
 27-9    committee" means the interagency oversight committee created under
27-10    Section 2054.304.
27-11          Sec. 2054.302.  CREATION.  The TexasOnline grant program is
27-12    created to enable counties, municipalities, and school districts to
27-13    provide electronic government services through TexasOnline.
27-14          Sec. 2054.303.  MANAGEMENT.  The program management office
27-15    shall:
27-16                (1)  manage the TexasOnline grant program;
27-17                (2)  establish, with input from the oversight
27-18    committee, specific criteria and processes for selecting counties,
27-19    municipalities, and school districts to participate in the grant
27-20    program;
27-21                (3)  develop, in coordination with the oversight
27-22    committee, a cost methodology to minimize the amount smaller
27-23    governmental entities must pay for maintenance of services through
27-24    TexasOnline; and
27-25                (4)  explore opportunities with the Telecommunications
27-26    Infrastructure Fund Board to develop automatic eligibility or a
 28-1    streamlined grant application process for applicants for
 28-2    collaborative community networking grants.
 28-3          Sec. 2054.304.  INTERAGENCY OVERSIGHT COMMITTEE.  (a)  The
 28-4    department shall establish an interagency oversight committee to:
 28-5                (1)  oversee implementation of the TexasOnline grant
 28-6    program; and
 28-7                (2)  approve the distribution of grants under the
 28-8    program.
 28-9          (b)  The committee membership must consist of representatives
28-10    from:
28-11                (1)  the department;
28-12                (2)  the comptroller;
28-13                (3)  the General Services Commission;
28-14                (4)  the Telecommunications Infrastructure Fund Board;
28-15                (5)  the Office of Court Administration of the Texas
28-16    Judicial System; and
28-17                (6)  any other persons that the department considers
28-18    appropriate.
28-19          (c)  The oversight committee shall work with representatives
28-20    of organizations such as the Texas Municipal League, Texas
28-21    Association of Counties, and other organizations to disseminate
28-22    information on the TexasOnline grant program.
28-23          (d)  Reimbursement of the expenses of a committee member may
28-24    be paid only from money available to the governmental entity that
28-25    the member represents.
28-26          (e)  The oversight committee is not an advisory committee.
 29-1          Sec. 2054.305.  PREFERENCE FOR DISTRIBUTION OF GRANT MONEY.
 29-2    In determining the distribution of grant money under this
 29-3    subchapter, the oversight committee shall prefer counties,
 29-4    municipalities, and school districts located in a strategic
 29-5    investment area, as defined by Section 171.721, Tax Code.
 29-6          Sec. 2054.306.  CONDITIONS.  As a condition of receiving a
 29-7    grant under this subchapter, a grant recipient must agree to
 29-8    maintain online services after the grant period terminates.  The
 29-9    oversight committee and the grant recipient must negotiate and
29-10    agree on the conditions of the grant, including the length of time
29-11    required for maintenance of online services after the grant period
29-12    ends.
29-13          Sec. 2054.307.  USE OF GRANT MONEY.  (a)  Grant money may be
29-14    used only to:
29-15                (1)  pay start-up costs incurred by the use of
29-16    TexasOnline;
29-17                (2)  pay for the design and maintenance of websites and
29-18    other online services with program offerings designed to benefit
29-19    counties, municipalities, and school districts through TexasOnline;
29-20    or
29-21                (3)  develop, deploy, and maintain information
29-22    technology systems to provide governmental services through
29-23    TexasOnline.
29-24          (b)  Grant money may not be used to pay for communications
29-25    links to public or private telecommunication systems, such as the
29-26    state's public telecommunications network or for Internet service
 30-1    provider costs.
 30-2          Sec. 2054.308.  EXPIRATION.  This subchapter expires
 30-3    September 1, 2003.
 30-4          SECTION 3.04.  FUNDING CONTINGENCY.  The provisions in
 30-5    Article 3 of this Act apply to the extent that funds are
 30-6    specifically appropriated for the purpose of Article 3 of this Act.
 30-7          SECTION 3.05.  ESTABLISHMENT OF INTERAGENCY OVERSIGHT
 30-8    COMMITTEE.  Not later than January 15, 2002, the Department of
 30-9    Information Resources shall establish the interagency oversight
30-10    committee, as provided by Section 2054.304, Government Code, as
30-11    added by this article.
30-12                          ARTICLE 4.  PROCUREMENT
30-13          SECTION 4.01.  Chapter 2177, Government Code, is amended by
30-14    adding Section 2177.0001 to read as follows:
30-15          Sec. 2177.0001.  DEFINITIONS.  In this chapter:
30-16                (1)  "Department" means the Department of Information
30-17    Resources.
30-18                (2)  "Electronic procurement system" means a system
30-19    that allows the purchase of goods and services and related
30-20    activities, including access to multiple marketplaces and vendors,
30-21    through an electronic network on the Internet and includes:
30-22                      (A)  any system created under this chapter; and
30-23                      (B)  any other electronic system relating to the
30-24    purchase of goods and services implemented by the department or
30-25    accessed through TexasOnline.
30-26                (3)  "Institution of higher education" has the meaning
 31-1    assigned by Section 61.003, Education Code.
 31-2                (4)  "Local government" means a county, municipality,
 31-3    special district, school district, or any other political
 31-4    subdivision of this state.
 31-5                (5)  "State agency" has the meaning assigned by Section
 31-6    2054.003, except that the term does not include a university system
 31-7    or institution of higher education.
 31-8                (6)  "TexasOnline" has the meaning assigned by Section
 31-9    2054.003.
31-10          SECTION 4.02.  Subsections (d) and (e), Section 2177.001,
31-11    Government Code, are amended to read as follows:
31-12          (d)  The commission may make state procurement services
31-13    [information] available to local governments and institutions of
31-14    higher education [political subdivisions] through the electronic
31-15    procurement marketplace on a fee-for-service basis.  The commission
31-16    may [shall] set the fees for transactions in an amount that
31-17    recovers the state's costs in providing the access to a local
31-18    government or institution of higher education [political
31-19    subdivision].
31-20          (e)  Before developing a contract for the procurement of a
31-21    good or service, a state agency, local government, or institution
31-22    of higher education may use the electronic procurement marketplace
31-23    to determine the most appropriate method for acquiring the good or
31-24    service.
31-25          SECTION 4.03.  Section 2177.002, Government Code, is amended
31-26    by amending Subsection (e) and adding Subsection (i) to read as
 32-1    follows:
 32-2          (e)  The commission may allow local governments, institutions
 32-3    of higher education, [political subdivisions] and other public
 32-4    entities that are members of the commission's cooperative
 32-5    purchasing program to participate in the electronic commerce
 32-6    network.  The commission shall require that a participating
 32-7    [political subdivision or other] entity is charged a fee for the
 32-8    network services in the same manner that participating state
 32-9    agencies are charged fees under Subsection (d).
32-10          (i)  If the network is integrated into, or replaced by, an
32-11    electronic procurement system implemented by the department and
32-12    accessed through TexasOnline, the commission and the department
32-13    shall enter into an agreement regarding distribution of the fees
32-14    charged for transactions on the network, to recover the cost of
32-15    TexasOnline.
32-16          SECTION 4.04.  Section 2177.003, Government Code, is amended
32-17    to read as follows:
32-18          Sec. 2177.003.  PARTICIPATION BY STATE AGENCIES IN ELECTRONIC
32-19    PROCUREMENT SYSTEM [COMMERCE NETWORK].  (a)  Each state agency
32-20    shall send to the commission for posting on the electronic
32-21    procurement system [commerce network] information on each
32-22    procurement contract that the commission, in consultation with the
32-23    department, determines is appropriate for electronic procurement
32-24    [the value of which will exceed the amount of the agency's
32-25    delegated purchasing authority under Section 2155.132]:
32-26                (1)  without regard to the source of funds the agency
 33-1    will use for the procurement; and
 33-2                (2)  including a procurement that is:
 33-3                      (A)  a procurement by a state agency that is
 33-4    otherwise exempt from the commission's purchasing authority;
 33-5                      (B)  made under delegated purchasing authority
 33-6    under Section 2155.131;
 33-7                      [(C)  related to a construction project;] or
 33-8                      (C) [(D)]  a procurement of professional or
 33-9    consulting services.
33-10          (b)  The commission and each participating state agency,
33-11    local government, or institution of higher education shall include
33-12    in the information placed on the electronic procurement system,
33-13    including the electronic commerce network, [to the extent it is
33-14    feasible,] the following information for each procurement that the
33-15    commission will make or that another state agency will make under
33-16    Subsection (a):
33-17                (1)  a description of the goods or services to be
33-18    procured;
33-19                (2)  the estimated quantity of the goods or services to
33-20    be procured;
33-21                (3)  if applicable, the previous price paid by the
33-22    commission or another state agency for the same or similar goods or
33-23    services;
33-24                (4)  the estimated date on which the goods or services
33-25    to be procured will be needed; [and]
33-26                (5)  the name, business mailing address, and business
 34-1    telephone number of the commission employee or other state agency,
 34-2    local government, or institution of higher education employee a
 34-3    person can contact for further information;
 34-4                (6)  [to obtain] all necessary information relating to
 34-5    making a bid or proposal or other applicable expression of interest
 34-6    for the procurement contract, including contract terms; and
 34-7                (7)  opportunities available to state agencies, local
 34-8    governments, and institutions of higher education for price
 34-9    discounts on volume purchases under the contract.
34-10          (c)  The commission shall also post on the electronic
34-11    procurement system [commerce network] other information relating to
34-12    the business activity of the state that the commission considers to
34-13    be of interest to the public.  Each state agency and participating
34-14    local government or institution of higher education shall provide
34-15    the commission with information the commission requires for
34-16    purposes of this subsection in a format prescribed by the
34-17    commission.
34-18          (d)  Each state agency that will award a contract that has
34-19    been placed on the electronic procurement system [commerce network]
34-20    under Subsection (a) shall place notification of the awarding of
34-21    the contract on the system [electronic commerce network].
34-22          SECTION 4.05.  Section 2155.083, Government Code, is
34-23    transferred to Chapter 2177, Government Code, redesignated as
34-24    Section 2177.004, Government Code, and amended to read as follows:
34-25          Sec. 2177.004 [2155.083].  STATE BUSINESS DAILY; NOTICE
34-26    REGARDING PROCUREMENTS EXCEEDING $25,000.  (a)  This [Except as
 35-1    provided by Subsection (n), this] section applies to each state
 35-2    agency making a procurement that will exceed $25,000 in value,
 35-3    without regard to the source of funds the agency will use for the
 35-4    procurement, including a procurement that:
 35-5                (1)  is otherwise exempt from the commission's
 35-6    purchasing authority or the application of this subtitle;
 35-7                (2)  is made under delegated purchasing authority;
 35-8                (3)  is related to a construction project; or
 35-9                (4)  is a procurement of professional or consulting
35-10    services.
35-11          (b)  [In this section, "department" means the Texas
35-12    Department of Commerce.]
35-13          [(c)]  The commission [department] each business day shall
35-14    produce and post a business daily in an electronic format.  The
35-15    commission [department] shall post in the business daily
35-16    information as prescribed by this section about each state agency
35-17    procurement that will exceed $25,000 in value.  The commission
35-18    [department] shall also post in the business daily other
35-19    information relating to the business activity of the state that the
35-20    commission [department] considers to be of interest to the public.
35-21          (c) [(d)]  The commission [department] shall make the
35-22    business daily available on the Internet through its information
35-23    service known as the Texas Marketplace or through a suitable
35-24    successor information service that will make the information
35-25    available on the Internet.  The commission [department] and each
35-26    state agency shall cooperate in making the electronic business
 36-1    daily available.
 36-2          (d) [(e)]  To accommodate businesses that do not have the
 36-3    technical means to access the business daily, governmental and
 36-4    nongovernmental entities such as public libraries, chambers of
 36-5    commerce, trade associations, small business development centers,
 36-6    economic development departments of local governments, and state
 36-7    agencies may provide public access to the business daily.  A
 36-8    governmental entity may recover the direct cost of providing the
 36-9    public access only by charging a fee for downloading procurement
36-10    notices and bid or proposal solicitation packages posted in the
36-11    business daily.  A nongovernmental entity may use information
36-12    posted in the business daily in providing a service that is more
36-13    than only the downloading of information from the business daily,
36-14    including a service by which appropriate bidders or offerors are
36-15    matched with information that is relevant to those bidders or
36-16    offerors, and may charge a lawful fee that the entity considers
36-17    appropriate for the service.
36-18          (e) [(f)]  The commission [department] and other state
36-19    agencies may not charge a fee designed to recover the cost of
36-20    preparing and gathering the information that is published in the
36-21    business daily.  These costs are considered part of a procuring
36-22    agency's responsibility to publicly inform potential bidders or
36-23    offerors of its procurement opportunities.
36-24          (f) [(g)]  A state agency shall post in the business daily
36-25    either the entire bid or proposal solicitation package or a notice
36-26    that includes all information necessary to make a successful bid,
 37-1    proposal, or other applicable expression of interest for the
 37-2    procurement contract, including at a minimum the following
 37-3    information for each procurement that the state agency will make
 37-4    that is estimated to exceed $25,000 in value:
 37-5                (1)  a brief description of the goods or services to be
 37-6    procured and any applicable state product or service codes for the
 37-7    goods and services;
 37-8                (2)  the last date on which bids, proposals, or other
 37-9    applicable expressions of interest will be accepted;
37-10                (3)  the estimated quantity of goods or services to be
37-11    procured;
37-12                (4)  if applicable, the previous price paid by the
37-13    state agency for the same or similar goods or services;
37-14                (5)  the estimated date on which the goods or services
37-15    to be procured will be needed; and
37-16                (6)  the name, business mailing address, and business
37-17    telephone number of the state agency employee a person may contact
37-18    to inquire about all necessary information related to making a bid
37-19    or proposal or other applicable expression of interest for the
37-20    procurement contract.
37-21          (g) [(h)]  The state agency shall continue to either:
37-22                (1)  post notice of the procurement in accordance with
37-23    Subsection (f) [(g)] until the latest of 21 calendar days after the
37-24    date the notice is first posted; the date the state agency will no
37-25    longer accept bids, proposals, or other applicable expressions of
37-26    interest for the procurement; or the date the state agency decides
 38-1    not to make the procurement; or
 38-2                (2)  post the entire bid or proposal solicitation
 38-3    package in accordance with Subsection (f) [(g)] until the latest of
 38-4    14 calendar days after the date the bid or proposal solicitation
 38-5    package is first posted; the date the state agency will no longer
 38-6    accept bids, proposals, or other applicable expressions of interest
 38-7    for the procurement; or the date the state agency decides not to
 38-8    make the procurement.
 38-9          (h) [(i)]  A state agency may not award the procurement
38-10    contract and shall continue to accept bids or proposals or other
38-11    applicable expressions of interest for the procurement contract for
38-12    at least 21 calendar days after the date the state agency first
38-13    posted notice of the procurement in accordance with Subsection (f)
38-14    [(g)] or 14 calendar days after the date the state agency first
38-15    posted the entire bid or proposal solicitation package in
38-16    accordance with Subsection (f) [(g)], as applicable.  The minimum
38-17    time for posting required by this subsection and Subsection (g)
38-18    [(h)] does not apply in an emergency requiring the state agency to
38-19    make the procurement more quickly to prevent a hazard to life,
38-20    health, safety, welfare, or property or to avoid undue additional
38-21    cost to the state.
38-22          (i) [(j)]  A contract or procurement award made by a state
38-23    agency that violates the applicable minimum time for posting
38-24    required by Subsections (g) [(h)] and (h) [(i)] is void.
38-25          (j) [(k)]  Each state agency that will award a procurement
38-26    contract estimated to exceed $25,000 in value shall send to the
 39-1    commission [department]:
 39-2                (1)  the information the commission [department]
 39-3    requires for posting in the state business daily under this
 39-4    section; and
 39-5                (2)  a notice when the procurement contract has been
 39-6    awarded or when the state agency has decided to not make the
 39-7    procurement.
 39-8          (k) [(l)]  The commission [department] may adopt rules,
 39-9    prescribe forms, and require information to administer this
39-10    section.  The commission [department] shall send any proposed rules
39-11    to the governor, Legislative Budget Board, comptroller, state
39-12    auditor, and commission for review and comment.  The commission's
39-13    [department's] rules shall require that each state agency, to the
39-14    extent feasible, shall directly and electronically post its own
39-15    notices or solicitation packages under Subsections (f) [(g)] and
39-16    (g) [(h)].
39-17          (l) [(m)]  The requirements of this section are in addition
39-18    to the requirements of other law relating to the solicitation of
39-19    bids, proposals, or expressions of interest for a procurement by a
39-20    state agency.  This section does not affect whether a state agency
39-21    is required to award a procurement contract through competitive
39-22    bidding, competitive sealed proposals, or another method.
39-23          (m) [(n)]  This section does not apply to a state agency to
39-24    which Section 51.9335 or 73.115, Education Code, applies.
39-25          SECTION 4.06.  Chapter 2177, Government Code, is amended by
39-26    adding Section 2177.005 to read as follows:
 40-1          Sec. 2177.005.  APPLICABILITY TO INSTITUTIONS OF HIGHER
 40-2    EDUCATION.  An institution of higher education may, but is not
 40-3    required to, participate in any electronic procurement system
 40-4    established under this chapter.
 40-5         ARTICLE 5.  STUDY AND REPORT ON ELECTRONIC GRANTS SYSTEM
 40-6          SECTION 5.01.  STUDY AND REPORT.  (a)  In this section:
 40-7                (1)  "Department" means the Department of Information
 40-8    Resources.
 40-9                (2)  "State agency" has the meaning assigned by Section
40-10    2054.003, Government Code, as amended by Article 3 of this Act,
40-11    except that the term does not include a university system or
40-12    institution of higher education as defined by Section 61.003,
40-13    Education Code.
40-14          (b)  The department shall study the costs and benefits of
40-15    establishing a statewide electronic grants management system to:
40-16                (1)  increase the awareness of grant availability;
40-17                (2)  provide a single place for accessing grant
40-18    information;
40-19                (3)  provide a searchable database of grant
40-20    opportunities organized by criteria that include grant topic, the
40-21    types of persons eligible for the grants, and the grant amount;
40-22                (4)  allow electronic grant applications;
40-23                (5)  simplify grant application and grant management
40-24    processes; and
40-25                (6)  improve the tracking and monitoring of pending and
40-26    awarded grants.
 41-1          (c)  The study must identify:
 41-2                (1)  each state agency that offers grants; and
 41-3                (2)  the types of persons affected by the grants,
 41-4    including groups that apply for the grants and the groups served by
 41-5    grant funds.
 41-6          (d)  The study must consider:
 41-7                (1)  whether available software to track grants can be
 41-8    used in an electronic grants management system in this state;
 41-9                (2)  the feasibility and benefits of using TexasOnline,
41-10    as defined by Section 2054.003, Government Code, as amended by
41-11    Article 3 of this Act, or another Internet site designated by the
41-12    department to facilitate public access; and
41-13                (3)  the following methods to lower the costs of
41-14    providing an electronic grants management system:
41-15                      (A)  partnerships between governmental entities
41-16    and the private sector;
41-17                      (B)  options for seeking reimbursement of costs,
41-18    including convenience fees or subscription fees; and
41-19                      (C)  any other innovative options, as determined
41-20    by the department.
41-21          (e)  The department may request from the Electronic Grants
41-22    Technical Assistance Workgroup information related to opportunities
41-23    for improving grant management through:
41-24                (1)  improved technology; and
41-25                (2)  sharing state information resources.
41-26          (f)  Not later than September 1, 2002, the department shall
 42-1    report on the findings of the study to:
 42-2                (1)  the governor;
 42-3                (2)  the lieutenant governor; and
 42-4                (3)  the speaker of the house of representatives.
 42-5          (g)  If the report recommends implementation of a statewide
 42-6    electronic grants management system, the department may develop a
 42-7    plan and begin implementation of a statewide electronic grants
 42-8    management system based on the plan, the report's recommendations,
 42-9    and the findings of the study.
42-10                      ARTICLE 6.  CONTRACT MANAGEMENT
42-11          SECTION 6.01.  USE OF LOCAL GOVERNMENT CONTRACTS.  Section
42-12    2155.079, Government Code, is amended to read as follows:
42-13          Sec. 2155.079.  BUYING UNDER CONTRACT ESTABLISHED BY AGENCY
42-14    OTHER THAN COMMISSION.  (a)  In this section, "local government"
42-15    means a county, municipality, special district, school district,
42-16    junior college district, or other political subdivision of the
42-17    state.
42-18          (b)  The commission shall adopt rules specifying the
42-19    circumstances under which it is not advantageous for the state to
42-20    allow a state agency to purchase goods or services under a contract
42-21    made by:
42-22                (1)  another state agency other than the commission; or
42-23                (2)  a local government.
42-24          (c) [(b)]  If commission rules allow other agencies to make
42-25    purchases under a contract entered into by an agency using
42-26    delegated purchasing authority, the agency purchasing under
 43-1    delegated authority may offer the goods or services available under
 43-2    the contract to other agencies or local governments [only if the
 43-3    agency first:]
 43-4                [(1)  establishes that the goods or services being
 43-5    offered under its contract are not available under a contract
 43-6    administered by the commission; and]
 43-7                [(2)  informs the commission of the terms of the
 43-8    contract and the capabilities of the vendor].
 43-9          SECTION 6.02.  ADOPTION OF RULES.  Not later than February
43-10    28, 2002, the General Services Commission shall adopt the rules
43-11    required by Section 2155.079, Government Code, as amended by this
43-12    article.
43-13                          ARTICLE 7.  EMPLOYMENT
43-14          SECTION 7.01.  CREATION OF ONLINE EMPLOYMENT OPENINGS SYSTEM.
43-15    Subchapter A, Chapter 656, Government Code, is amended by adding
43-16    Sections 656.002 and 656.003 to read as follows:
43-17          Sec. 656.002.  ONLINE EMPLOYMENT OPENINGS SYSTEM.  (a)  In
43-18    this section, "state agency" has the meaning assigned by Section
43-19    2054.003, except that the term does not include a university system
43-20    or institution of higher education as defined by Section 61.003,
43-21    Education Code.
43-22          (b)  The Department of Information Resources shall work with
43-23    the Texas Workforce Commission and other state agencies to create a
43-24    system for listing state agency employment openings on the
43-25    Internet.
43-26          (c)  Characteristics of the system must include to the extent
 44-1    feasible:
 44-2                (1)  the use of existing technical infrastructure and
 44-3    specialty job bulletin boards when the cost is equal to or less
 44-4    than the cost of building a separate infrastructure;
 44-5                (2)  real-time communication between an applicant for
 44-6    state employment and a state agency;
 44-7                (3)  immediate matching of an applicant to a listing
 44-8    based on the applicant's qualifications;
 44-9                (4)  the ability to allow an applicant to complete one
44-10    state application online and enter the application in a single
44-11    database from which the applicant may electronically send the
44-12    application to multiple state agencies;
44-13                (5)  the ability to allow an applicant to enter a
44-14    resume into an online database from which the applicant may
44-15    electronically send the resume to a state agency;
44-16                (6)  the ability of a state agency to list employment
44-17    openings electronically with limited keystrokes from one Internet
44-18    site; and
44-19                (7)  the ability to generate management information
44-20    such as the number of visits to a state agency employment listing,
44-21    the number of applicants for each opening, the number of applicants
44-22    hired for each listing, the time from listing to filling an
44-23    opening, and the frequency and volume of listings by type.
44-24          Sec. 656.003.  ACCESS TO EMPLOYMENT OPENINGS INFORMATION.
44-25    The Texas Workforce Commission shall make computers available to
44-26    the public at its field offices to ensure access to information
 45-1    about employment openings.
 45-2          SECTION 7.02.  LISTING OF JOB NOTICES.  Section 656.024,
 45-3    Government Code, is amended to read as follows:
 45-4          Sec. 656.024.  PUBLIC NOTICE OF JOB VACANCIES.  The
 45-5    commission shall publicly list, in accordance with the commission's
 45-6    procedures, [for at least 10 working days,] each notice of a job
 45-7    vacancy delivered under Section 656.022 [unless the commission is
 45-8    sooner notified by the state agency having the vacancy that the
 45-9    vacancy has been filled].
45-10               ARTICLE 8.  ADDITIONAL REPORTING REQUIREMENTS
45-11          SECTION 8.01.  STUDY.  (a)  Not later than September 1, 2002,
45-12    the Department of Information Resources shall study the
45-13    instructions used for preparing agency strategic plans under
45-14    Section 2054.095, Government Code.  The study must:
45-15                (1)  examine ways to ensure that plans are timely and
45-16    useful for state agencies and for the strategic planning process;
45-17    and
45-18                (2)  consider whether changes in the instructions are
45-19    needed regarding the content, frequency, and use of strategic
45-20    plans.
45-21          (b)  The Department of Information Resources shall adopt
45-22    revised instructions under Section 2054.095, Government Code, based
45-23    on the results of the study.
45-24          SECTION 8.02.  SPECIFICATIONS FOR ELECTRONIC DATA
45-25    CLEARINGHOUSE; REPORT.  (a)  In this section, "department" means
45-26    the Department of Information Resources.
 46-1          (b)  The department, in coordination with the comptroller of
 46-2    public accounts and other state agencies, local governments,
 46-3    federal agencies, the Texas Conference of Urban Counties, the Texas
 46-4    Association of Counties, and the Texas Municipal League, shall
 46-5    develop specifications, including procedures and implementation
 46-6    methods, for a statewide electronic data clearinghouse.  The
 46-7    department shall develop options for funding the maintenance or
 46-8    expansion of the clearinghouse, such as using resources from
 46-9    participating governmental entities to recoup the costs.  Each
46-10    option must address the potential impact on participation by
46-11    governmental entities.  Not later than January 1, 2003, the
46-12    department shall provide a report containing the recommendations,
46-13    specifications, and funding options developed under this subsection
46-14    to:
46-15                (1)  the governor;
46-16                (2)  the lieutenant governor; and
46-17                (3)  the speaker of the house of representatives.
46-18          (c)  Not later than August 31, 2003, the department shall
46-19    develop policies, procedures, data standards, training materials,
46-20    and perform any other duties necessary to prepare for the
46-21    establishment of the clearinghouse by August 31, 2004.
46-22          SECTION 8.03.  REPORT ON REPORTING REQUIREMENTS FOR COUNTIES
46-23    AND MUNICIPALITIES.  (a)  In this section, "department" means the
46-24    Department of Information Resources.
46-25          (b)  The department shall comprehensively examine all state
46-26    reporting requirements for counties and municipalities.  The goal
 47-1    of the examination is to:
 47-2                (1)  minimize the amount of reporting requirements;
 47-3                (2)  standardize state reporting requirements;
 47-4                (3)  consolidate reports;
 47-5                (4)  eliminate reports that are no longer necessary;
 47-6                (5)  improve access to data by all levels of government
 47-7    and the public; and
 47-8                (6)  automate reporting.
 47-9          (c)  The examination must include an inventory of all reports
47-10    that counties and municipalities must produce in response to state
47-11    requirements.  The inventory must also show the current status of
47-12    electronic reporting.
47-13          (d)  Not later than January 15, 2002, the Legislative
47-14    Oversight Committee for Electronic Government Projects created
47-15    under Section 2055.152, Government Code, as added by Article 1 of
47-16    this Act, shall appoint a working group composed of representatives
47-17    of the comptroller of public account's office, other state
47-18    agencies, and local governments.
47-19          (e)  Based on the examination made under Subsection (c) of
47-20    this section, and in coordination with the working group, not later
47-21    than January 1, 2003, the department shall report on its
47-22    recommendations for streamlining and reducing reporting
47-23    requirements on counties and municipalities to:
47-24                (1)  the lieutenant governor;
47-25                (2)  the speaker of the house of representatives; and
47-26                (3)  the Legislative Oversight Committee for Electronic
 48-1    Government Projects.
 48-2          ARTICLE 9.  MISCELLANEOUS INFORMATION RESOURCES ISSUES
 48-3          SECTION 9.01.  CHIEF INFORMATION OFFICER.  Subchapter B,
 48-4    Chapter 2054, Government Code, is amended by adding Section
 48-5    2054.0285 and amending Section 2054.029 to read as follows:
 48-6          Sec. 2054.0285.  EXECUTIVE DIRECTOR:  CHIEF INFORMATION
 48-7    OFFICER; POWERS AND DUTIES.  (a)  The board shall employ an
 48-8    executive director.  The executive director is the chief
 48-9    information officer for Texas state government.
48-10          (b)  The executive director has authority for all aspects of
48-11    information technology for state agencies, including:
48-12                (1)  the use of technology to support state goals;
48-13                (2)  functional support to state agencies;
48-14                (3)  technology purchases;
48-15                (4)  deployment of new technology;
48-16                (5)  delivery of technology services; and
48-17                (6)  provision of leadership on technology issues.
48-18          Sec. 2054.029.  [EXECUTIVE DIRECTOR;] STAFF; SEPARATION OF
48-19    RESPONSIBILITIES.  (a)  The board shall employ [an executive
48-20    director and other] employees necessary to implement its duties.
48-21          (b)  The executive director or the executive director's
48-22    designee shall provide to members of the board and to the
48-23    department's employees, as often as necessary, information
48-24    regarding their qualifications for office or employment under this
48-25    chapter and their responsibilities under applicable laws relating
48-26    to standards of conduct for state officers or employees.
 49-1          (c)  The board shall develop and implement policies that
 49-2    clearly separate the policymaking responsibilities of the board and
 49-3    the management responsibilities of the executive director and the
 49-4    staff of the department.
 49-5          SECTION 9.02.  VENDOR INCENTIVES.  Subchapter C, Chapter
 49-6    2054, Government Code, is amended by adding Section 2054.058 to
 49-7    read as follows:
 49-8          Sec. 2054.058.  CONSIDERATION OF VENDOR INCENTIVES.  When
 49-9    contracting with a vendor to perform a task related to an
49-10    electronic government project, the department shall consider
49-11    methods of payments, including considering whether a percentage of
49-12    money to be saved could be used to provide an incentive to the
49-13    vendor to complete the project on time and under budget.
49-14          SECTION 9.03.  PUBLIC INFORMATION EXCEPTION.  Subchapter C,
49-15    Chapter 552, Government Code, is amended by adding Section 552.136
49-16    to read as follows:
49-17          Sec. 552.136.  EXCEPTION:  GOVERNMENT INFORMATION RELATED TO
49-18    SECURITY ISSUES FOR COMPUTERS.  (a)  Information is excepted from
49-19    the requirements of Section 552.021 if it is information that
49-20    relates to computer network security or to the design, operation,
49-21    or defense of a computer network.
49-22          (b)  The following information is confidential:
49-23                (1)  a computer network vulnerability report; and
49-24                (2)  any other assessment of the extent to which data
49-25    processing operations, a computer, or a computer program, network,
49-26    system, or software of a governmental body or of a contractor of a
 50-1    governmental body is vulnerable to unauthorized access or harm,
 50-2    including an assessment of the extent to which the governmental
 50-3    body's or contractor's electronically stored information is
 50-4    vulnerable to alteration, damage, or erasure.
 50-5     ARTICLE 10.  COMPTROLLER PROVISIONS ON USE OF ADVANCED EQUIPMENT,
 50-6          DATABASES, AND DELEGATION OF TASKS TO OUTSIDE PERSONNEL
 50-7          SECTION 10.01.  ADVANCED DATABASE FOR AUDITS.  Subchapter A,
 50-8    Chapter 111, Tax Code, is amended by adding Section 111.0034 to
 50-9    read as follows:
50-10          Sec. 111.0034.  ADVANCED DATABASE SYSTEM FOR AUDITS.
50-11    (a)  The comptroller shall develop an advanced electronic audit
50-12    database system for use by the comptroller's audit division.  The
50-13    system must:
50-14                (1)  centralize management of audit transaction data;
50-15                (2)  enhance the quality control of data; and
50-16                (3)  be compatible with other data systems of the
50-17    state.
50-18          (b)  The comptroller may contract with a vendor to develop or
50-19    implement the system.
50-20          (c)  If the comptroller contracts with a vendor to develop or
50-21    implement the system, the comptroller must protect any confidential
50-22    information provided to the vendor.  A person who receives
50-23    confidential information under this section and each employee or
50-24    agent of that person is subject to the same prohibitions against
50-25    disclosure of the information, and the same penalties and sanctions
50-26    for improper disclosure, that apply to the comptroller.
 51-1          SECTION 10.02.  ADVANCED DATABASE FOR TAX COLLECTIONS.  The
 51-2    heading for Section 111.0035, Tax Code, is amended to read as
 51-3    follows:
 51-4          Sec. 111.0035.  ADVANCED DATABASE SYSTEM FOR TAX COLLECTIONS.
 51-5          SECTION 10.03.  OUTSIDE PERSONNEL.  Subchapter A, Chapter
 51-6    111, is amended by adding Section 111.0045 to read as follows:
 51-7          Sec. 111.0045.  USE OF OUTSIDE PERSONNEL; DELEGATION OF
 51-8    POWERS.  (a)  As necessary to enhance productivity, the comptroller
 51-9    may employ or contract for the services of accountants, assistants,
51-10    auditors, clerks, information technology specialists, and
51-11    investigators to:
51-12                (1)  provide or use the equipment acquired under
51-13    Subchapter G; and
51-14                (2)  assist with the administration of this code.
51-15          (b)  The comptroller may delegate to persons employed or
51-16    contracted under this section the power to perform duties as
51-17    required.
51-18          SECTION 10.04.  ADVANCED EQUIPMENT.  Chapter 111, Tax Code,
51-19    is amended by adding Subchapter G to read as follows:
51-20               SUBCHAPTER G.  ADVANCED TECHNOLOGY EQUIPMENT
51-21          Sec. 111.351.  WIRELESS EQUIPMENT FOR AUDITORS.  The
51-22    comptroller shall acquire wireless communication equipment for use
51-23    by its auditors, including wireless modems for laptop computers for
51-24    high-speed, wireless access to comptroller systems.
51-25          Sec. 111.352.  COMPUTER AND WIRELESS EQUIPMENT FOR
51-26    ENFORCEMENT STAFF.  (a)  The comptroller shall acquire portable
 52-1    computers with remote or wireless communications equipment for use
 52-2    by its enforcement staff.
 52-3          (b)  The portable computers acquired under this section must
 52-4    be integrated with an electronic signature capturing system and
 52-5    portable printing capabilities to enhance the security of
 52-6    collections made under this chapter.
 52-7          (c)  The equipment must enable enforcement staff to:
 52-8                (1)  verify taxpayer claims;
 52-9                (2)  update taxpayer information from the field; and
52-10                (3)  facilitate account updates.
52-11          Sec. 111.353.  ADVANCED SCANNERS FOR FIELD OFFICES.  The
52-12    comptroller shall acquire advanced scanners for its field offices.
52-13    The scanners must enable enforcement officers to scan enforcement
52-14    data directly into comptroller databases without requiring later
52-15    manual entry.
52-16                        ARTICLE 11.  EFFECTIVE DATE
52-17          SECTION 11.01.  EFFECTIVE DATE.  This Act takes effect
52-18    immediately if it receives a vote of two-thirds of all the members
52-19    elected to each house, as provided by Section 39, Article III,
52-20    Texas Constitution.  If this Act does not receive the vote
52-21    necessary for immediate effect, this Act takes effect September 1,
52-22    2001.