1-1     By:  Duncan                                           S.B. No. 1458
 1-2           (In the Senate - Filed March 8, 2001; March 13, 2001, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 26, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 0; April 26, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1458                   By:  Madla
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the management of state agency and local government
1-11     electronic projects, equipment, and contracts, to the purchase and
1-12     use of certain advanced technological equipment, and to the use of
1-13     outside personnel by the comptroller of public accounts.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15         ARTICLE 1.  ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT OFFICE
1-16           SECTION 1.01.  CREATION OF OFFICE.  Subtitle B, Title 10,
1-17     Government Code, is amended by adding Chapter 2055 to read as
1-18     follows:
1-19           CHAPTER 2055.  ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT
1-20                      SUBCHAPTER A.  GENERAL PROVISIONS
1-21           Sec. 2055.001.  DEFINITIONS.  In this chapter:
1-22                 (1)  "Board," "department," "electronic government
1-23     project," "local government," and "TexasOnline" have the meanings
1-24     assigned by Section 2054.003.
1-25                 (2)  "Institution of higher education" has the meaning
1-26     assigned by Section 61.003, Education Code.
1-27                 (3)  "Office" means the Electronic Government Program
1-28     Management Office of the department.
1-29                 (4)  "State agency" has the meaning assigned by Section
1-30     2054.003, except that the term does not include a university system
1-31     or institution of higher education.
1-32           Sec. 2055.002.  APPLICABILITY TO INSTITUTIONS OF HIGHER
1-33     EDUCATION.  (a)  Except as provided by Subsection (b), the
1-34     requirements of this chapter regarding electronic government
1-35     projects do not apply to institutions of higher education.
1-36           (b)  Subject to approval by the office, an institution of
1-37     higher education may elect to participate regarding an electronic
1-38     government project of that institution in the same manner as a
1-39     state agency under this chapter.  If the institution makes this
1-40     election and the office approves the election, the institution:
1-41                 (1)  shall comply with this chapter regarding that
1-42     electronic government project in the same manner as a state agency;
1-43     and
1-44                 (2)  may not withdraw the project from management by
1-45     the office unless the office approves the withdrawal.
1-46             (Sections 2055.003-2055.050 reserved for expansion
1-47                  SUBCHAPTER B.  PROGRAM MANAGEMENT OFFICE
1-48           Sec. 2055.051.  CREATION.  The department shall create an
1-49     Electronic Government Program Management Office to direct and
1-50     facilitate the implementation of electronic government projects
1-51     selected under this chapter.
1-52           Sec. 2055.052.  GENERAL POWERS AND DUTIES.  The office shall:
1-53                 (1)  establish and support standard business practices
1-54     for electronic government projects;
1-55                 (2)  coordinate and establish standards for
1-56     implementation of electronic government projects;
1-57                 (3)  identify and incorporate best practices for
1-58     electronic government projects in such areas as:
1-59                       (A)  the procurement of hardware, software, and
1-60     technology services;
1-61                       (B)  project support;
1-62                       (C)  implementation strategies;
1-63                       (D)  project planning and scheduling;
1-64                       (E)  quality assurance;
 2-1                       (F)  overall team coordination;
 2-2                       (G)  status reporting; and
 2-3                       (H)  technical standards; and
 2-4                 (4)  provide risk management and quality assurance
 2-5     services for electronic government projects.
 2-6           Sec. 2055.053.  LOCAL GOVERNMENT AND FEDERAL PROJECTS.  The
 2-7     office may coordinate electronic government projects involving:
 2-8                 (1)  local government; or
 2-9                 (2)  the federal government.
2-10           Sec. 2055.054.  COORDINATION AMONG STATE AGENCIES; APPROVAL
2-11     OF SPENDING.  (a)  In coordination with the Legislative Budget
2-12     Board and the comptroller, the office shall:
2-13                 (1)  identify the resources necessary for projects and
2-14     opportunities among multiple state agencies for the coordination of
2-15     electronic government projects; and
2-16                 (2)  approve spending of money for electronic
2-17     government projects by affected state agencies under Section
2-18     2055.101.
2-19           (b)  The office shall create state agency coordination teams,
2-20     as appropriate, to reduce information technology expenditures and
2-21     eliminate unnecessary duplication.
2-22           Sec. 2055.055.  COOPERATION; STANDARDS.  (a)  A state agency
2-23     shall:
2-24                 (1)  cooperate with the department and the office
2-25     regarding electronic government projects; and
2-26                 (2)  provide to the department, as often as may be
2-27     required and in the format required by the department, all
2-28     information required by the department under this chapter that has
2-29     not already been submitted to the department.
2-30           (b)  In requesting cooperation from a state agency under this
2-31     section, the department shall consider the necessity of the request
2-32     as well as the cost to the agency in time and resources.
2-33           (c)  The office shall establish standards for state agencies
2-34     to follow in implementing selected electronic government projects
2-35     to ensure maximum savings through cooperation among agencies.
2-36           Sec. 2055.056.  QUALITY ASSURANCE.  In coordination with the
2-37     state auditor, the Legislative Budget Board, and the affected state
2-38     agency, the office shall provide quality assurance services to
2-39     monitor electronic government projects selected under Section
2-40     2055.101.
2-41           Sec. 2055.057.  FUNDING FOR PROGRAM MANAGEMENT OFFICE.
2-42     (a)  In coordination with the comptroller, Governor's Office of
2-43     Budget and Planning, state auditor, and Legislative Budget Board,
2-44     the office shall develop a model for funding the office from a
2-45     portion of the money appropriated for projects selected under
2-46     Section 2055.101, including staff necessary for the office.  The
2-47     office shall submit the model for approval by the governor and
2-48     adoption by the department as a rule.
2-49           (b)  Each state agency that has an electronic government
2-50     project selected under Section 2055.101 shall enter into an
2-51     agreement with the department under Chapter 771 to provide
2-52     reimbursement to the department for the services of the office
2-53     according to the model established under Subsection (a).
2-54           Sec. 2055.058.  TEXASONLINE.  (a)  The division of the
2-55     department with responsibility for TexasOnline shall coordinate the
2-56     ongoing development of TexasOnline with the office.
2-57           (b)  The office shall promote the use of TexasOnline by state
2-58     agencies.
2-59           Sec. 2055.059.  USE OF WEST TEXAS DISASTER RECOVERY AND
2-60     OPERATIONS CENTER.  (a)  In this section, "center" means the West
2-61     Texas Disaster Recovery and Operations Center.
2-62           (b)  The office shall use the center for the consolidation of
2-63     data operations and recovery to the extent that using the center
2-64     provides the best value to the state.
2-65           (c)  The office shall serve as the state's primary contact
2-66     with the center regarding the consolidation of data operations and
2-67     recovery.
2-68           (d)  The office shall encourage increased use of the center
2-69     by state agencies.
 3-1             (Sections 2055.060-2055.100 reserved for expansion
 3-2         SUBCHAPTER C.  MANAGEMENT OF ELECTRONIC GOVERNMENT PROJECTS
 3-3           Sec. 2055.101.  SELECTION OF ELECTRONIC GOVERNMENT PROJECTS.
 3-4     (a)  The office, in coordination with the governor, state auditor,
 3-5     and Legislative Budget Board, shall develop selection criteria for
 3-6     the type of electronic government projects that require direct
 3-7     oversight by the office.  The criteria must include:
 3-8                 (1)  issues related to interagency cooperation and
 3-9     implementation;
3-10                 (2)  costs, including reimbursement strategies;
3-11                 (3)  requirements for authentication and security
3-12     implications; and
3-13                 (4)  the state's strategic vision regarding electronic
3-14     government projects.
3-15           (b)  The office shall submit the criteria developed under
3-16     Subsection (a) to the department.  The department shall adopt the
3-17     criteria by rule.
3-18           (c)  Based on any selection criteria adopted under Subsection
3-19     (b) and in coordination with the governor, state auditor, and
3-20     Legislative Budget Board, the office may select proposed or
3-21     existing electronic government projects.
3-22           Sec. 2055.102.  APPEAL OF SELECTION.  (a)  A state agency
3-23     that disagrees with the selection of an electronic government
3-24     project under Section 2055.101 may appeal to the executive director
3-25     of the department.  If the agency disagrees with the executive
3-26     director's decision, the agency may then appeal to the board.  If
3-27     the agency disagrees with the board's decision, the agency may then
3-28     appeal to the governor.  The governor's decision regarding
3-29     selection is final.
3-30           (b)  The department by rule shall adopt appeal procedures.
3-31           Sec. 2055.103.  USE OF TEXASONLINE.  (a)  To the extent
3-32     possible, the office shall use TexasOnline for electronic
3-33     government projects that it manages.
3-34           (b)  The office shall evaluate current and potential
3-35     electronic government projects to determine whether they are
3-36     suitable for TexasOnline.
3-37           Sec. 2055.104.  SPENDING ON SELECTED ELECTRONIC GOVERNMENT
3-38     PROJECTS.  (a)  A state agency must receive the approval of the
3-39     office before the agency may spend or encumber money on an
3-40     electronic government project selected under Section 2055.101.  If
3-41     the agency spends money without the approval of the office, the
3-42     office may recommend to the governor that spending for the project
3-43     be terminated under Section 2055.105.
3-44           (b)  If a state agency disagrees with the office's refusal to
3-45     approve spending under Subsection (a), the agency may appeal to the
3-46     governor.  If the governor agrees with the agency, the office shall
3-47     approve the spending.
3-48           (c)  The office, in coordination with the Legislative Budget
3-49     Board and the comptroller and subject to the approval of the
3-50     governor's office of budget and planning, shall establish
3-51     procedures for approval of spending under Subsection (a).  The
3-52     procedures must include:
3-53                 (1)  a review of project implementation; and
3-54                 (2)  an assessment of whether the project is meeting
3-55     its objectives and complying with any standards established by the
3-56     department.
3-57           Sec. 2055.105.  AUTHORITY TO TERMINATE OR REINSTATE SPENDING
3-58     ON ELECTRONIC GOVERNMENT PROJECTS.  (a)  In coordination with the
3-59     Legislative Budget Board and the Governor's Office of Budget and
3-60     Planning, the office shall submit criteria to the department for
3-61     terminating or reinstating selected electronic government projects.
3-62     The criteria must consider:
3-63                 (1)  the state agency's compliance with this chapter;
3-64                 (2)  the state agency's compliance with department
3-65     rules;
3-66                 (3)  the success of the project;
3-67                 (4)  the needs of any affected state agencies; and
3-68                 (5)  any changes in technology that affect the project.
3-69           (b)  The department shall adopt the criteria by rule.
 4-1           (c)  The office may recommend to the governor that an
 4-2     electronic government project selected under Section 2055.101 be
 4-3     terminated or temporarily halted if the project fails to meet the
 4-4     criteria adopted under Subsection (b).
 4-5           (d)  On a recommendation from the office that an electronic
 4-6     government project should be terminated or temporarily halted, the
 4-7     governor may direct the comptroller to deny the state agency access
 4-8     to the agency's appropriations that relate to the development or
 4-9     implementation of the electronic government project.  The denial of
4-10     access continues until the governor is satisfied that the
4-11     electronic government project can be implemented efficiently and
4-12     consistently under the criteria for reinstatement established by
4-13     this section.
4-14           Sec. 2055.106.  ENTERPRISE RESOURCE PLANNING; USE OF OFFICE
4-15     REQUIRED.  (a)  As used in this section, "enterprise resource
4-16     planning" includes the administration of an entity's:
4-17                 (1)  general ledger;
4-18                 (2)  accounts payable;
4-19                 (3)  accounts receivable;
4-20                 (4)  budgeting;
4-21                 (5)  inventory;
4-22                 (6)  asset management;
4-23                 (7)  billing;
4-24                 (8)  payroll;
4-25                 (9)  projects;
4-26                 (10)  grants; and
4-27                 (11)  human resources, including performance measures,
4-28     time spent on tasks, and other personnel and labor issues.
4-29           (b)  In coordination with the Health and Human Services
4-30     Commission and the comptroller, the office shall establish
4-31     standards for implementing an electronic government project for
4-32     enterprise resource planning systems in this state.  The standards
4-33     must build on the models developed by the commission.
4-34           (c)  A state agency that chooses to implement or modify an
4-35     electronic government project for an enterprise resource planning
4-36     system must comply with the standards developed by the office under
4-37     this section.
4-38           Sec. 2055.107.  ONLINE SERVICE FOR NEW BUSINESSES.  (a)  The
4-39     office, with assistance from the business permit office of the
4-40     Texas Department of Economic Development and any other affected
4-41     state agencies, shall develop and implement a plan for the creation
4-42     of an electronic government project to provide new businesses in
4-43     this state a single source for information and permitting.
4-44           (b)  The project must:
4-45                 (1)  be integrated with TexasOnline; and
4-46                 (2)  provide comprehensive and relevant information for
4-47     a new business, including:
4-48                       (A)  steps and information necessary to start a
4-49     new business;
4-50                       (B)  general business regulations;
4-51                       (C)  information on licensing and permitting; and
4-52                       (D)  relevant telephone numbers and Internet
4-53     addresses for seeking further information.
4-54           (c)  The Texas Department of Economic Development, secretary
4-55     of state, Texas Natural Resource Conservation Commission, Texas
4-56     Department of Licensing and Regulation, Texas Department of
4-57     Transportation, comptroller, and any other state agency involved in
4-58     issuing permits to new businesses shall assist the office in the
4-59     development and operation of the project.
4-60           (d)  State agencies shall cooperate with the office to
4-61     structure their procedures to facilitate participation in the
4-62     project.
4-63             (Sections 2055.108-2055.150 reserved for expansion
4-64               SUBCHAPTER D.  LEGISLATIVE OVERSIGHT COMMITTEE
4-65           Sec. 2055.151.  DEFINITION.  In this subchapter, "oversight
4-66     committee" means the Legislative Oversight Committee for Electronic
4-67     Government Projects.
4-68           Sec. 2055.152.  CREATION.  The Legislative Oversight
4-69     Committee for Electronic Government Projects is created to oversee
 5-1     the establishment of electronic government projects by the office
 5-2     and state agencies.
 5-3           Sec. 2055.153.  MEMBERS.  The oversight committee consists of
 5-4     six members, appointed as follows:
 5-5                 (1)  the chair of the house committee on appropriations
 5-6     or a member of the committee designated by the chair;
 5-7                 (2)  the chair of the house committee on state affairs
 5-8     or a member of the committee designated by the chair;
 5-9                 (3)  one member of the house of representatives,
5-10     appointed by the speaker of the house;
5-11                 (4)  the chair of the senate committee on finance or a
5-12     member of the committee designated by the chair;
5-13                 (5)  the chair of the senate committee on state affairs
5-14     or a member of the committee designated by the chair; and
5-15                 (6)  one member of the senate appointed by the
5-16     lieutenant governor.
5-17           Sec. 2055.154.  OFFICERS.  (a)  The oversight committee shall
5-18     annually select a member to serve as presiding officer.
5-19           (b)  The presiding officer shall appoint a vice presiding
5-20     officer from the other house of the legislature.
5-21           Sec. 2055.155.  GENERAL POWERS AND DUTIES.  (a)  The
5-22     oversight committee shall oversee and review the implementation of
5-23     electronic government projects by:
5-24                 (1)  the office or any other division of the department
5-25     with responsibilities regarding TexasOnline; and
5-26                 (2)  state agencies, including the state agency with
5-27     primary responsibility for implementing TexasOnline.
5-28           (b)  The oversight and review shall include policies related
5-29     to fiscal matters and the cost-effectiveness of the efforts of the
5-30     agencies and the office.
5-31           (c)  The oversight committee shall make recommendations to
5-32     the legislature and the board concerning:
5-33                 (1)  best practices regarding information technology
5-34     and electronic government projects, and methods for implementing
5-35     those practices in this state; and
5-36                 (2)  changes in legislative technology policy.
5-37           Sec. 2055.156.  TEXASONLINE.  The oversight committee shall
5-38     recommend, to the state agency with primary responsibility for
5-39     implementing TexasOnline, what constitutes the infrastructure of
5-40     TexasOnline.
5-41           Sec. 2055.157.  RESPONSIBILITY FOR REPORTS; BUDGET.  (a)  The
5-42     oversight committee shall make recommendations to the legislature
5-43     based on reports prepared by:
5-44                 (1)  the office or any other division of the department
5-45     with responsibilities regarding TexasOnline; and
5-46                 (2)  the state agency with primary responsibility for
5-47     implementing TexasOnline.
5-48           (b)  The oversight committee may:
5-49                 (1)  request reports and other information from:
5-50                       (A)  the board;
5-51                       (B)  the department;
5-52                       (C)  the office or any other division of the
5-53     department with responsibilities regarding TexasOnline; or
5-54                       (D)  the state agency with primary responsibility
5-55     for implementing TexasOnline; and
5-56                 (2)  review and comment on the budget for the office or
5-57     any other division of the department with responsibilities
5-58     regarding TexasOnline.
5-59           Sec. 2055.158.  PUBLIC HEARINGS.  The oversight committee may
5-60     hold public hearings.  The oversight committee may administer oaths
5-61     and issue subpoenas as necessary to compel the attendance of
5-62     witnesses or the production of documents.
5-63           Sec. 2055.159.  ADVISORY COMMITTEES.  The oversight committee
5-64     may appoint advisory committees to make recommendations regarding
5-65     electronic government projects.  In making appointments to an
5-66     advisory committee under this section, the oversight committee may
5-67     include public members, including public members who are experts in
5-68     technology and the implementation of that technology in state
5-69     government.
 6-1           Sec. 2055.160.  DEPARTMENT OF INFORMATION RESOURCES.  The
 6-2     department shall consider any comments from the oversight committee
 6-3     before adopting rules.
 6-4           Sec. 2055.161.  STAFF; USE BY LEGISLATURE.  (a)  The
 6-5     oversight committee may employ staff necessary to implement its
 6-6     duties.
 6-7           (b)  On request of the oversight committee, the Legislative
 6-8     Budget Board and Texas Legislative Council shall provide staff to
 6-9     the oversight committee.
6-10           (c)  Any member of the legislature may use staff employed by
6-11     the oversight committee.
6-12           Sec. 2055.162.  COOPERATION WITH OTHER STATE AGENCIES.  On
6-13     request by the oversight committee, a state agency shall cooperate
6-14     with and assist the oversight committee.
6-15             (Sections 2055.163-2055.200 reserved for expansion
6-16         SUBCHAPTER E.  ADDITIONAL PLANNING, OVERSIGHT, AND REPORTS
6-17           Sec. 2055.201.  ELECTRONIC GOVERNMENT PROGRAM MANAGEMENT
6-18     OFFICE ADVISORY COMMITTEE.  (a)   The board shall create an
6-19     Electronic Government Program Management Office Advisory Committee
6-20     under Section 2054.033 to provide ongoing direction for the
6-21     operation of the office.
6-22           (b)  The board shall appoint not more than 15 members to the
6-23     committee.  The committee must include:
6-24                 (1)  one member from a large state agency;
6-25                 (2)  one member from a small state agency;
6-26                 (3)  one member from a state agency not described by
6-27     Subdivision (1) or (2);
6-28                 (4)  one member from a local government;
6-29                 (5)  one member from an institution of higher
6-30     education;
6-31                 (6)  one member from the comptroller's office;
6-32                 (7)  one member from the governor's office;
6-33                 (8)  one member from the state auditor's office;
6-34                 (9)  one member from the Legislative Budget Board; and
6-35                 (10)  at least two public members, including one member
6-36     who represents a business.
6-37           (c)  The committee shall assist the office to:
6-38                 (1)  establish:
6-39                       (A)  procedures;
6-40                       (B)  project priorities; and
6-41                       (C)  reporting requirements; and
6-42                 (2)  provide:
6-43                       (A)  guidance, direction, and perspective about
6-44     the office's operations; and
6-45                       (B)  recommendations for implementing electronic
6-46     government projects in this state.
6-47           (d)  A governmental member of the committee may be reimbursed
6-48     for expenses only from money available to the governmental entity
6-49     the member represents.
6-50           Sec. 2055.202.  STRATEGIC AND BIENNIAL OPERATING PLANS.  The
6-51     office shall review state agency plans prepared under Sections
6-52     2054.095 and 2054.100 to:
6-53                 (1)  identify electronic government projects that
6-54     should be selected by the office for management; and
6-55                 (2)  recommend any changes to those plans or the
6-56     instructions for those plans to ensure that electronic government
6-57     projects are consistent with the state strategic plan.
6-58           Sec. 2055.203.  REPORTS ON ELECTRONIC GOVERNMENT PROJECTS.
6-59     (a)  In coordination with the quality assurance team of the
6-60     Legislative Budget Board and the state auditor, the office shall
6-61     establish a state agency reporting system that requires state
6-62     agencies to report to the office on:
6-63                 (1)  electronic government projects selected under
6-64     Section 2055.101 so that the office may effectively monitor those
6-65     projects; and
6-66                 (2)  all other electronic government projects for that
6-67     agency.
6-68           (b)  The reports established under Subsection (a)(1) must
6-69     include an analysis of:
 7-1                 (1)  efficiencies achieved by the project;
 7-2                 (2)  costs and benefits; and
 7-3                 (3)  the scope of the project, including persons
 7-4     affected by the project.
 7-5           Sec. 2055.204.  ANNUAL REPORT TO LEGISLATIVE OVERSIGHT
 7-6     COMMITTEE.  (a)  Not later than September 1 of each year, the
 7-7     office shall report to the Legislative Oversight Committee for
 7-8     Electronic Government Projects on the status of the office and the
 7-9     electronic government projects managed by the office, including:
7-10                 (1)  savings achieved;
7-11                 (2)  efficiencies achieved;
7-12                 (3)  other potential projects or areas for
7-13     standardization;
7-14                 (4)  the services provided by the office;
7-15                 (5)  the cost-effectiveness of the office; and
7-16                 (6)  best practices regarding information technology
7-17     and electronic government projects, and methods for implementing
7-18     those practices in this state.
7-19           (b)  The Legislative Oversight Committee for Electronic
7-20     Government Projects must review and approve the report before
7-21     appropriate information may be included in the report proposed
7-22     under Section 2054.055.
7-23           SECTION 1.02.  REPORT ON ELECTRONIC GOVERNMENT PROJECTS.
7-24     Subsection (b), Section 2054.055, Government Code, is amended to
7-25     read as follows:
7-26           (b)  The report must:
7-27                 (1)  assess the progress made toward meeting the goals
7-28     and objectives of the state strategic plan for information
7-29     resources management;
7-30                 (2)  describe major accomplishments of the state or a
7-31     specific state agency in information resources management;
7-32                 (3)  describe major problems in information resources
7-33     management confronting the state or a specific state agency;
7-34                 (4)  provide a summary of the total expenditures for
7-35     information resources and information resources technologies by the
7-36     state; [and]
7-37                 (5)  make recommendations for improving the
7-38     effectiveness and cost-efficiency of the state's use of information
7-39     resources;
7-40                 (6)  include a list compiled by the department's
7-41     program management office from the information gathered under
7-42     Sections 2055.202 and 2055.203 of the electronic government
7-43     projects:
7-44                       (A)  that are managed by the office under Chapter
7-45     2055; and
7-46                       (B)  that are not yet managed by the office under
7-47     Chapter 2055, but have been selected for management under Chapter
7-48     2055; and
7-49                 (7)  include appropriate information from the report
7-50     prepared under Section 2055.204.
7-51           SECTION 1.03.  REPORT ON STRATEGIC AND BIENNIAL OPERATING
7-52     PLANS.  Not later than November 1, 2001, the Electronic Government
7-53     Program Management Office shall complete its recommendations on
7-54     modifying instructions based on the initial review conducted under
7-55     Section 2055.202, Government Code, as added by this article.
7-56           SECTION 1.04.  APPOINTMENT OF LEGISLATIVE OVERSIGHT
7-57     COMMITTEE.  Not later than November 15, 2001, the members of the
7-58     Legislative Oversight Committee for Electronic Government Projects
7-59     created under Subchapter D, Chapter 2055, Government Code, as added
7-60     by this article, must be designated as provided under Section
7-61     2055.153, Government Code, as added by this article.
7-62           SECTION 1.05.  APPOINTMENT OF ELECTRONIC PROGRAM MANAGEMENT
7-63     OFFICE ADVISORY COMMITTEE.  Not later than January 15, 2002, the
7-64     governing board of the Department of Information Resources shall
7-65     appoint the members of the Electronic Government Program Management
7-66     Office Advisory Committee, as provided by Section 2055.201,
7-67     Government Code, as added by this article.
7-68           SECTION 1.06.  ADOPTION OF RULES.  Not later than May 31,
7-69     2002, the Department of Information Resources shall adopt the rules
 8-1     required by Sections 2055.057, 2055.101, 2055.102, and 2055.105,
 8-2     Government Code, as added by this article.
 8-3           SECTION 1.07.  PLAN.  (a)  Not later than September 1, 2002,
 8-4     the Electronic Government Program Management Office shall complete
 8-5     the plan required under Section 2055.107, Government Code, as added
 8-6     by this article.  The plan must outline the recommendations and
 8-7     resources necessary to further develop and implement the Internet
 8-8     services provided under that section.
 8-9           (b)  The business permit office of the Texas Department of
8-10     Economic Development and any other affected state agencies shall
8-11     assist the Electronic Government Program Management Office in
8-12     developing the plan.
8-13               ARTICLE 2.  CREATION OF SEAT MANAGEMENT OFFICE;
8-14                          STUDY ON SEAT MANAGEMENT
8-15           SECTION 2.01.  SEAT MANAGEMENT.  Chapter 2054, Government
8-16     Code, is amended by adding Subchapter K to read as follows:
8-17                       SUBCHAPTER K.  SEAT MANAGEMENT
8-18           Sec. 2054.351.  DEFINITIONS.  In this subchapter:
8-19                 (1)  "Office" means the seat management office created
8-20     under this subchapter.
8-21                 (2)  "Seat management" means the seat management method
8-22     described by Section 2054.355(b).
8-23                 (3)  "State agency" has the meaning assigned by Section
8-24     2054.003, except that the term does not include a university system
8-25     or institution of higher education as defined by Section 61.003,
8-26     Education Code.
8-27           Sec. 2054.352.  CREATION.  The department shall create a seat
8-28     management office to:
8-29                 (1)  conduct and evaluate the study under Section
8-30     2054.354;
8-31                 (2)  make recommendations under Section 2054.355; and
8-32                 (3)  advise state agencies on seat management issues.
8-33           Sec. 2054.353.  CONSULTATION.  A state agency shall consult
8-34     with the office:
8-35                 (1)  before making any decisions regarding seat
8-36     management; and
8-37                 (2)  if the agency conducts any studies or other
8-38     analyses regarding seat management.
8-39           Sec. 2054.354.  TOTAL COST OF OWNERSHIP STUDIES.  (a)  The
8-40     department shall select 10 to 12 state agencies to participate in a
8-41     pilot study.  Each agency shall study the total cost of all
8-42     personal computers and related systems used by the agency,
8-43     including both owned and leased systems.  The study must include:
8-44                 (1)  direct costs, including costs for hardware,
8-45     software, peripheral equipment, networks, management and support
8-46     labor hours, systems development, and communications; and
8-47                 (2)  indirect costs, including computer downtime and
8-48     end-user training, self-teaching, support, and any other costs
8-49     related to the use of the personal computer.
8-50           (b)  An agency selected under this section shall cooperate
8-51     with the department in conducting the study.
8-52           (c)  The department, including the office, on request shall
8-53     assist a state agency in complying with this section.
8-54           (d)  Not later than May 1, 2002, each selected state agency
8-55     shall report on the results of its study to the department.
8-56           Sec. 2054.355.  STUDY AND RECOMMENDATIONS ON USE OF PRIVATE
8-57     CONTRACTORS TO IMPLEMENT SEAT MANAGEMENT.  (a)  The office shall
8-58     analyze the results of the studies under Section 2054.354 to assess
8-59     the feasibility of establishing a statewide seat management system
8-60     at the time the assessment is completed or at a later time.
8-61           (b)  As part of the feasibility study, the office shall
8-62     analyze seat management, through which a state agency transfers its
8-63     personal computer equipment and service responsibilities to a
8-64     private vendor as described by this subsection.  The state agency
8-65     would hire a private vendor to manage the personal computing needs
8-66     for each desktop in a state agency, including all necessary
8-67     hardware, software, and support services.  Under this method, the
8-68     vendor would be responsible for some or all planning, installation,
8-69     configuration, testing, maintenance, repair, upgrading, training,
 9-1     project management, asset management, disposal, and other services
 9-2     related to the agency's personal computing needs.  Subject to the
 9-3     agency's needs and a vendor contract, the vendor selected by the
 9-4     agency would satisfy the agency's personal computer needs,
 9-5     including:
 9-6                 (1)  personal computer acquisition and support;
 9-7                 (2)  local area networks;
 9-8                 (3)  Internet access;
 9-9                 (4)  electronic mail;
9-10                 (5)  help-desk support for user questions and
9-11     maintenance requests;
9-12                 (6)  remote-access needs;
9-13                 (7)  technology upgrades necessary to keep equipment
9-14     current; and
9-15                 (8)  any other data, voice, and video communication
9-16     needs.
9-17           (c)  The office shall study different types of contracts that
9-18     could be used to implement seat management.
9-19           (d)  Not later than November 1, 2002, the office shall report
9-20     its recommendations to the presiding officer of each house of the
9-21     legislature and to the committees of each house of the legislature
9-22     that have primary oversight jurisdiction over the department.  The
9-23     recommendations must include:
9-24                 (1)  whether a statewide seat management plan should be
9-25     implemented;
9-26                 (2)  a plan, if seat management implementation is
9-27     recommended under Subdivision (1), to transfer selected state
9-28     agency computer equipment and service responsibilities to private
9-29     vendors;
9-30                 (3)  an estimate of implementation costs;
9-31                 (4)  an estimate of potential savings due to the
9-32     transfers;
9-33                 (5)  a plan for the office to develop seat management
9-34     contracts, including the development of a multiple award schedule
9-35     of contracts for use by state agencies;
9-36                 (6)  procedures for state agencies to:
9-37                       (A)  follow when a vendor fails to meet the needs
9-38     of the agency; and
9-39                       (B)  change to a different vendor; and
9-40                 (7)  proposals to add responsibilities for the office,
9-41     including the responsibility to:
9-42                       (A)  establish minimum standards for the use of
9-43     seat management by state agencies;
9-44                       (B)  serve as a best practices repository for
9-45     seat management;
9-46                       (C)  develop a guidebook on seat management for
9-47     use by state agencies; and
9-48                       (D)  evaluate and recommend modifications to the
9-49     state's seat management practices.
9-50           Sec. 2054.356.  PERSONAL COMPUTER INVENTORY REPORTING BY
9-51     STATE AGENCIES.  Not later than September 1, 2002, and September 1,
9-52     2003, each state agency shall provide the office with an inventory
9-53     of all personal computers used by that agency as of June 1, 2002,
9-54     and June 1, 2003, respectively.
9-55           Sec. 2054.357.  EXPIRATION.  This subchapter expires
9-56     September 1, 2003.
9-57                           ARTICLE 3.  TEXASONLINE
9-58           SECTION 3.01.  AMENDMENT OF DEFINITIONS.  Section 2054.003,
9-59     Government Code, is amended to read as follows:
9-60           Sec. 2054.003.  DEFINITIONS.  In this chapter:
9-61                 (1)  "Application" means a separately identifiable and
9-62     interrelated set of information resources technologies that allows
9-63     a state agency to manipulate information resources to support
9-64     specifically defined objectives.
9-65                 (2)  "Board" means the governing board of the
9-66     Department of Information Resources.
9-67                 (3)  "Data processing" means information technology
9-68     equipment and related services designed for the automated storage,
9-69     manipulation, and retrieval of data by electronic or mechanical
 10-1    means.  The term includes:
 10-2                      (A)  central processing units, front-end
 10-3    processing units, miniprocessors, microprocessors, and related
 10-4    peripheral equipment such as data storage devices, document
 10-5    scanners, data entry equipment, terminal controllers, data terminal
 10-6    equipment, computer-based word processing systems other than memory
 10-7    typewriters, and equipment and systems for computer networks;
 10-8                      (B)  all related services, including feasibility
 10-9    studies, systems design, software development, and time-sharing
10-10    services, provided by state employees or others; and
10-11                      (C)  the programs and routines used to employ and
10-12    control the capabilities of data processing hardware, including
10-13    operating systems, compilers, assemblers, utilities, library
10-14    routines, maintenance routines, applications, and computer
10-15    networking programs.
10-16                (4)  "Department" means the Department of Information
10-17    Resources.
10-18                (5)  "Electronic government project" means the use of
10-19    information technology to improve the access to and delivery of a
10-20    government service, including a project that uses the Internet as a
10-21    primary tool for the delivery of a government service or
10-22    performance of a governmental function.
10-23                (6)  "Executive director" means the executive director
10-24    of the Department of Information Resources.
10-25                (7) [(6)]  "Information resources" means the
10-26    procedures, equipment, and software that are employed, designed,
10-27    built, operated, and maintained to collect, record, process, store,
10-28    retrieve, display, and transmit information, and associated
10-29    personnel including consultants and contractors.
10-30                (8) [(7)]  "Information resources technologies" means
10-31    data processing and telecommunications hardware, software,
10-32    services, supplies, personnel, facility resources, maintenance, and
10-33    training.
10-34                (9)  "Local government" means a county, municipality,
10-35    special district, school district, junior college district, or
10-36    other political subdivision of the state.
10-37                (10)  "Program management office" means the Electronic
10-38    Government Program Management Office created by the department
10-39    under Chapter 2055 to manage projects.
10-40                (11) [(8)]  "Project" means a program to provide
10-41    information resources technologies support to functions within or
10-42    among elements of a state agency, that ideally is characterized by
10-43    well-defined parameters, specific objectives, common benefits,
10-44    planned activities, a scheduled completion date, and an established
10-45    budget with a specified source of funding.
10-46                (12) [(9)]  "State agency" means a department,
10-47    commission, board, office, council, authority, or other agency in
10-48    the executive or judicial branch of state government that is
10-49    created by the constitution or a statute of this state, including a
10-50    university system or institution of higher education as defined by
10-51    Section 61.003, Education Code.
10-52                (13) [(10)]  "Telecommunications" means any
10-53    transmission, emission, or reception of signs, signals, writings,
10-54    images, or sounds of intelligence of any nature by wire, radio,
10-55    optical, or other electromagnetic systems.  The term includes all
10-56    facilities and equipment performing those functions that are owned,
10-57    leased, or used by state agencies and branches of state government.
10-58                (14)  "TexasOnline" means the electronic government
10-59    project or its successor project implemented under Section 2054.062
10-60    or its successor statute.
10-61          SECTION 3.02.  USE OF TEXASONLINE.  Subchapter F, Chapter
10-62    2054, Government Code, is amended by adding Section 2054.113 to
10-63    read as follows:
10-64          Sec. 2054.113.  DUPLICATION WITH TEXASONLINE; WAIVER.
10-65    (a)  This section does not apply to a state agency that is a
10-66    university system or institution of higher education as defined by
10-67    Section 61.003, Education Code.
10-68          (b)  A state agency may duplicate a need that is met by
10-69    TexasOnline if the state agency with primary responsibility to
 11-1    implement TexasOnline grants a waiver under this section.  The
 11-2    state agency shall grant the waiver to a state agency that desires
 11-3    not to use TexasOnline if the agency:
 11-4                (1)  demonstrates the necessity to have the project
 11-5    duplicate a need that is met by TexasOnline, including any service
 11-6    or security need for the agency requesting the waiver;
 11-7                (2)  demonstrates the agency has adequately considered
 11-8    the following issues:
 11-9                      (A)  security;
11-10                      (B)  privacy;
11-11                      (C)  disaster recovery; and
11-12                      (D)  maintenance and development costs; and
11-13                (3)  provides any other documentation required by the
11-14    state agency with primary responsibility to implement TexasOnline.
11-15          SECTION 3.03.  TEXASONLINE GRANT PROGRAM.  Chapter 2054,
11-16    Government Code, is amended by adding Subchapter J to read as
11-17    follows:
11-18                 SUBCHAPTER J.  TEXASONLINE GRANT PROGRAM
11-19          Sec. 2054.301.  DEFINITION.  In this subchapter, "oversight
11-20    committee" means the interagency oversight committee created under
11-21    Section 2054.304.
11-22          Sec. 2054.302.  CREATION.  The TexasOnline grant program is
11-23    created to enable counties, municipalities, and school districts to
11-24    provide electronic government services through TexasOnline.
11-25          Sec. 2054.303.  MANAGEMENT.  The program management office
11-26    shall:
11-27                (1)  manage the TexasOnline grant program;
11-28                (2)  establish, with input from the oversight
11-29    committee, specific criteria and processes for selecting counties,
11-30    municipalities, and school districts to participate in the grant
11-31    program;
11-32                (3)  develop, in coordination with the oversight
11-33    committee, a cost methodology to minimize the amount smaller
11-34    governmental entities must pay for maintenance of services through
11-35    TexasOnline; and
11-36                (4)  explore opportunities with the Telecommunications
11-37    Infrastructure Fund Board to develop automatic eligibility or a
11-38    streamlined grant application process for applicants for
11-39    collaborative community networking grants.
11-40          Sec. 2054.304.  INTERAGENCY OVERSIGHT COMMITTEE.  (a)  The
11-41    department shall establish an interagency oversight committee to:
11-42                (1)  oversee implementation of the TexasOnline grant
11-43    program; and
11-44                (2)  approve the distribution of grants under the
11-45    program.
11-46          (b)  The committee membership must consist of representatives
11-47    from:
11-48                (1)  the department;
11-49                (2)  the comptroller;
11-50                (3)  the General Services Commission;
11-51                (4)  the Telecommunications Infrastructure Fund Board;
11-52                (5)  the Office of Court Administration of the Texas
11-53    Judicial System; and
11-54                (6)  any other persons that the department considers
11-55    appropriate.
11-56          (c)  The oversight committee shall work with representatives
11-57    of organizations such as the Texas Municipal League, Texas
11-58    Association of Counties, and other organizations to disseminate
11-59    information on the TexasOnline grant program.
11-60          (d)  Reimbursement of the expenses of a committee member may
11-61    be paid only from money available to the governmental entity that
11-62    the member represents.
11-63          (e)  The oversight committee is not an advisory committee.
11-64          Sec. 2054.305.  PREFERENCE FOR DISTRIBUTION OF GRANT MONEY.
11-65    In determining the distribution of grant money under this
11-66    subchapter, the oversight committee shall prefer counties,
11-67    municipalities, and school districts located in a strategic
11-68    investment area, as defined by Section 171.721, Tax Code.
11-69          Sec. 2054.306.  CONDITIONS.  As a condition of receiving a
 12-1    grant under this subchapter, a grant recipient must agree to
 12-2    maintain online services after the grant period terminates.  The
 12-3    oversight committee and the grant recipient must negotiate and
 12-4    agree on the conditions of the grant, including the length of time
 12-5    required for maintenance of online services after the grant period
 12-6    ends.
 12-7          Sec. 2054.307.  USE OF GRANT MONEY.  (a)  Grant money may be
 12-8    used only to:
 12-9                (1)  pay start-up costs incurred by the use of
12-10    TexasOnline;
12-11                (2)  pay for the design and maintenance of websites and
12-12    other online services with program offerings designed to benefit
12-13    counties, municipalities, and school districts through TexasOnline;
12-14    or
12-15                (3)  develop, deploy, and maintain information
12-16    technology systems to provide governmental services through
12-17    TexasOnline.
12-18          (b)  Grant money may not be used to pay for communications
12-19    links to public or private telecommunication systems, such as the
12-20    state's public telecommunications network or for Internet service
12-21    provider costs.
12-22          Sec. 2054.308.  EXPIRATION.  This subchapter expires
12-23    September 1, 2003.
12-24          SECTION 3.04.  ESTABLISHMENT OF INTERAGENCY OVERSIGHT
12-25    COMMITTEE.  Not later than January 15, 2002, the Department of
12-26    Information Resources shall establish the interagency oversight
12-27    committee, as provided by Section 2054.304, Government Code, as
12-28    added by this article.
12-29                          ARTICLE 4.  PROCUREMENT
12-30          SECTION 4.01.  Chapter 2177, Government Code, is amended by
12-31    adding Section 2177.0001 to read as follows:
12-32          Sec. 2177.0001.  DEFINITIONS.  In this chapter:
12-33                (1)  "Department" means the Department of Information
12-34    Resources.
12-35                (2)  "Electronic procurement system" means a system
12-36    that allows the purchase of goods and services and related
12-37    activities, including access to multiple marketplaces and vendors,
12-38    through an electronic network on the Internet and includes:
12-39                      (A)  any system created under this chapter; and
12-40                      (B)  any other electronic system relating to the
12-41    purchase of goods and services implemented by the department or
12-42    accessed through TexasOnline.
12-43                (3)  "Institution of higher education" has the meaning
12-44    assigned by Section 61.003, Education Code.
12-45                (4)  "Local government" means a county, municipality,
12-46    special district, school district, or any other political
12-47    subdivision of this state.
12-48                (5)  "State agency" has the meaning assigned by Section
12-49    2054.003, except that the term does not include a university system
12-50    or institution of higher education.
12-51                (6)  "TexasOnline" has the meaning assigned by Section
12-52    2054.003.
12-53          SECTION 4.02.  Subsections (d) and (e), Section 2177.001,
12-54    Government Code, are amended to read as follows:
12-55          (d)  The commission may make state procurement services
12-56    [information] available to local governments and institutions of
12-57    higher education [political subdivisions] through the electronic
12-58    procurement marketplace on a fee-for-service basis.  The commission
12-59    may [shall] set the fees for transactions in an amount that
12-60    recovers the state's costs in providing the access to a local
12-61    government or institution of higher education [political
12-62    subdivision].
12-63          (e)  Before developing a contract for the procurement of a
12-64    good or service, a state agency, local government, or institution
12-65    of higher education may use the electronic procurement marketplace
12-66    to determine the most appropriate method for acquiring the good or
12-67    service.
12-68          SECTION 4.03.  Section 2177.002, Government Code, is amended
12-69    by amending Subsection (e) and adding Subsection (i) to read as
 13-1    follows:
 13-2          (e)  The commission may allow local governments, institutions
 13-3    of higher education, [political subdivisions] and other public
 13-4    entities that are members of the commission's cooperative
 13-5    purchasing program to participate in the electronic commerce
 13-6    network.  The commission shall require that a participating
 13-7    [political subdivision or other] entity is charged a fee for the
 13-8    network services in the same manner that participating state
 13-9    agencies are charged fees under Subsection (d).
13-10          (i)  If the network is integrated into, or replaced by, an
13-11    electronic procurement system implemented by the department and
13-12    accessed through TexasOnline, the commission and the department
13-13    shall enter into an agreement regarding distribution of the fees
13-14    charged for transactions on the network, to recover the cost of
13-15    TexasOnline.
13-16          SECTION 4.04.  Section 2177.003, Government Code, is amended
13-17    to read as follows:
13-18          Sec. 2177.003.  PARTICIPATION BY STATE AGENCIES IN ELECTRONIC
13-19    PROCUREMENT SYSTEM [COMMERCE NETWORK].  (a)  Each state agency
13-20    shall send to the commission for posting on the electronic
13-21    procurement system [commerce network] information on each
13-22    procurement contract that the commission, in consultation with the
13-23    department, determines is appropriate for electronic procurement
13-24    [the value of which will exceed the amount of the agency's
13-25    delegated purchasing authority under Section 2155.132]:
13-26                (1)  without regard to the source of funds the agency
13-27    will use for the procurement; and
13-28                (2)  including a procurement that is:
13-29                      (A)  a procurement by a state agency that is
13-30    otherwise exempt from the commission's purchasing authority;
13-31                      (B)  made under delegated purchasing authority
13-32    under Section 2155.131;
13-33                      [(C)  related to a construction project;] or
13-34                      (C) [(D)]  a procurement of professional or
13-35    consulting services.
13-36          (b)  The commission and each participating state agency,
13-37    local government, or institution of higher education shall include
13-38    in the information placed on the electronic procurement system,
13-39    including the electronic commerce network, [to the extent it is
13-40    feasible,] the following information for each procurement that the
13-41    commission will make or that another state agency will make under
13-42    Subsection (a):
13-43                (1)  a description of the goods or services to be
13-44    procured;
13-45                (2)  the estimated quantity of the goods or services to
13-46    be procured;
13-47                (3)  if applicable, the previous price paid by the
13-48    commission or another state agency for the same or similar goods or
13-49    services;
13-50                (4)  the estimated date on which the goods or services
13-51    to be procured will be needed; [and]
13-52                (5)  the name, business mailing address, and business
13-53    telephone number of the commission employee or other state agency,
13-54    local government, or institution of higher education employee a
13-55    person can contact for further information;
13-56                (6)  [to obtain] all necessary information relating to
13-57    making a bid or proposal or other applicable expression of interest
13-58    for the procurement contract, including contract terms; and
13-59                (7)  opportunities available to state agencies, local
13-60    governments, and institutions of higher education for price
13-61    discounts on volume purchases under the contract.
13-62          (c)  The commission shall also post on the electronic
13-63    procurement system [commerce network] other information relating to
13-64    the business activity of the state that the commission considers to
13-65    be of interest to the public.  Each state agency and participating
13-66    local government or institution of higher education shall provide
13-67    the commission with information the commission requires for
13-68    purposes of this subsection in a format prescribed by the
13-69    commission.
 14-1          (d)  Each state agency that will award a contract that has
 14-2    been placed on the electronic procurement system [commerce network]
 14-3    under Subsection (a) shall place notification of the awarding of
 14-4    the contract on the system [electronic commerce network].
 14-5          SECTION 4.05.  Section 2155.083, Government Code, is
 14-6    transferred to Chapter 2177, Government Code, redesignated as
 14-7    Section 2177.004, Government Code, and amended to read as follows:
 14-8          Sec. 2177.004 [2155.083].  STATE BUSINESS DAILY; NOTICE
 14-9    REGARDING PROCUREMENTS EXCEEDING $25,000.  (a)  This [Except as
14-10    provided by Subsection (n), this] section applies to each state
14-11    agency making a procurement that will exceed $25,000 in value,
14-12    without regard to the source of funds the agency will use for the
14-13    procurement, including a procurement that:
14-14                (1)  is otherwise exempt from the commission's
14-15    purchasing authority or the application of this subtitle;
14-16                (2)  is made under delegated purchasing authority;
14-17                (3)  is related to a construction project; or
14-18                (4)  is a procurement of professional or consulting
14-19    services.
14-20          (b)  [In this section, "department" means the Texas
14-21    Department of Commerce.]
14-22          [(c)]  The commission [department] each business day shall
14-23    produce and post a business daily in an electronic format.  The
14-24    commission [department] shall post in the business daily
14-25    information as prescribed by this section about each state agency
14-26    procurement that will exceed $25,000 in value.  The commission
14-27    [department] shall also post in the business daily other
14-28    information relating to the business activity of the state that the
14-29    commission [department] considers to be of interest to the public.
14-30          (c) [(d)]  The commission [department] shall make the
14-31    business daily available on the Internet through its information
14-32    service known as the Texas Marketplace or through a suitable
14-33    successor information service that will make the information
14-34    available on the Internet.  The commission [department] and each
14-35    state agency shall cooperate in making the electronic business
14-36    daily available.
14-37          (d) [(e)]  To accommodate businesses that do not have the
14-38    technical means to access the business daily, governmental and
14-39    nongovernmental entities such as public libraries, chambers of
14-40    commerce, trade associations, small business development centers,
14-41    economic development departments of local governments, and state
14-42    agencies may provide public access to the business daily.  A
14-43    governmental entity may recover the direct cost of providing the
14-44    public access only by charging a fee for downloading procurement
14-45    notices and bid or proposal solicitation packages posted in the
14-46    business daily.  A nongovernmental entity may use information
14-47    posted in the business daily in providing a service that is more
14-48    than only the downloading of information from the business daily,
14-49    including a service by which appropriate bidders or offerors are
14-50    matched with information that is relevant to those bidders or
14-51    offerors, and may charge a lawful fee that the entity considers
14-52    appropriate for the service.
14-53          (e) [(f)]  The commission [department] and other state
14-54    agencies may not charge a fee designed to recover the cost of
14-55    preparing and gathering the information that is published in the
14-56    business daily.  These costs are considered part of a procuring
14-57    agency's responsibility to publicly inform potential bidders or
14-58    offerors of its procurement opportunities.
14-59          (f) [(g)]  A state agency shall post in the business daily
14-60    either the entire bid or proposal solicitation package or a notice
14-61    that includes all information necessary to make a successful bid,
14-62    proposal, or other applicable expression of interest for the
14-63    procurement contract, including at a minimum the following
14-64    information for each procurement that the state agency will make
14-65    that is estimated to exceed $25,000 in value:
14-66                (1)  a brief description of the goods or services to be
14-67    procured and any applicable state product or service codes for the
14-68    goods and services;
14-69                (2)  the last date on which bids, proposals, or other
 15-1    applicable expressions of interest will be accepted;
 15-2                (3)  the estimated quantity of goods or services to be
 15-3    procured;
 15-4                (4)  if applicable, the previous price paid by the
 15-5    state agency for the same or similar goods or services;
 15-6                (5)  the estimated date on which the goods or services
 15-7    to be procured will be needed; and
 15-8                (6)  the name, business mailing address, and business
 15-9    telephone number of the state agency employee a person may contact
15-10    to inquire about all necessary information related to making a bid
15-11    or proposal or other applicable expression of interest for the
15-12    procurement contract.
15-13          (g) [(h)]  The state agency shall continue to either:
15-14                (1)  post notice of the procurement in accordance with
15-15    Subsection (f) [(g)] until the latest of 21 calendar days after the
15-16    date the notice is first posted; the date the state agency will no
15-17    longer accept bids, proposals, or other applicable expressions of
15-18    interest for the procurement; or the date the state agency decides
15-19    not to make the procurement; or
15-20                (2)  post the entire bid or proposal solicitation
15-21    package in accordance with Subsection (f) [(g)] until the latest of
15-22    14 calendar days after the date the bid or proposal solicitation
15-23    package is first posted; the date the state agency will no longer
15-24    accept bids, proposals, or other applicable expressions of interest
15-25    for the procurement; or the date the state agency decides not to
15-26    make the procurement.
15-27          (h) [(i)]  A state agency may not award the procurement
15-28    contract and shall continue to accept bids or proposals or other
15-29    applicable expressions of interest for the procurement contract for
15-30    at least 21 calendar days after the date the state agency first
15-31    posted notice of the procurement in accordance with Subsection (f)
15-32    [(g)] or 14 calendar days after the date the state agency first
15-33    posted the entire bid or proposal solicitation package in
15-34    accordance with Subsection (f) [(g)], as applicable.  The minimum
15-35    time for posting required by this subsection and Subsection (g)
15-36    [(h)] does not apply in an emergency requiring the state agency to
15-37    make the procurement more quickly to prevent a hazard to life,
15-38    health, safety, welfare, or property or to avoid undue additional
15-39    cost to the state.
15-40          (i) [(j)]  A contract or procurement award made by a state
15-41    agency that violates the applicable minimum time for posting
15-42    required by Subsections (g) [(h)] and (h) [(i)] is void.
15-43          (j) [(k)]  Each state agency that will award a procurement
15-44    contract estimated to exceed $25,000 in value shall send to the
15-45    commission [department]:
15-46                (1)  the information the commission [department]
15-47    requires for posting in the state business daily under this
15-48    section; and
15-49                (2)  a notice when the procurement contract has been
15-50    awarded or when the state agency has decided to not make the
15-51    procurement.
15-52          (k) [(l)]  The commission [department] may adopt rules,
15-53    prescribe forms, and require information to administer this
15-54    section.  The commission [department] shall send any proposed rules
15-55    to the governor, Legislative Budget Board, comptroller, state
15-56    auditor, and commission for review and comment.  The commission's
15-57    [department's] rules shall require that each state agency, to the
15-58    extent feasible, shall directly and electronically post its own
15-59    notices or solicitation packages under Subsections (f) [(g)] and
15-60    (g) [(h)].
15-61          (l) [(m)]  The requirements of this section are in addition
15-62    to the requirements of other law relating to the solicitation of
15-63    bids, proposals, or expressions of interest for a procurement by a
15-64    state agency.  This section does not affect whether a state agency
15-65    is required to award a procurement contract through competitive
15-66    bidding, competitive sealed proposals, or another method.
15-67          [(n)  This section does not apply to a state agency to which
15-68    Section 51.9335 or 73.115, Education Code, applies.]
 16-1         ARTICLE 5.  STUDY AND REPORT ON ELECTRONIC GRANTS SYSTEM
 16-2          SECTION 5.01.  STUDY AND REPORT.  (a)  In this section:
 16-3                (1)  "Department" means the Department of Information
 16-4    Resources.
 16-5                (2)  "State agency" has the meaning assigned by Section
 16-6    2054.003, Government Code, as amended by Article 3 of this Act,
 16-7    except that the term does not include a university system or
 16-8    institution of higher education as defined by Section 61.003,
 16-9    Education Code.
16-10          (b)  The department shall study the costs and benefits of
16-11    establishing a statewide electronic grants management system to:
16-12                (1)  increase the awareness of grant availability;
16-13                (2)  provide a single place for accessing grant
16-14    information;
16-15                (3)  provide a searchable database of grant
16-16    opportunities organized by criteria that include grant topic, the
16-17    types of persons eligible for the grants, and the grant amount;
16-18                (4)  allow electronic grant applications;
16-19                (5)  simplify grant application and grant management
16-20    processes; and
16-21                (6)  improve the tracking and monitoring of pending and
16-22    awarded grants.
16-23          (c)  The study must identify:
16-24                (1)  each state agency that offers grants; and
16-25                (2)  the types of persons affected by the grants,
16-26    including groups that apply for the grants and the groups served by
16-27    grant funds.
16-28          (d)  The study must consider:
16-29                (1)  whether available software to track grants can be
16-30    used in an electronic grants management system in this state;
16-31                (2)  the feasibility and benefits of using TexasOnline,
16-32    as defined by Section 2054.003, Government Code, as amended by
16-33    Article 3 of this Act, or another Internet site designated by the
16-34    department to facilitate public access; and
16-35                (3)  the following methods to lower the costs of
16-36    providing an electronic grants management system:
16-37                      (A)  partnerships between governmental entities
16-38    and the private sector;
16-39                      (B)  options for seeking reimbursement of costs,
16-40    including convenience fees or subscription fees; and
16-41                      (C)  any other innovative options, as determined
16-42    by the department.
16-43          (e)  The department may request from the Electronic Grants
16-44    Technical Assistance Workgroup information related to opportunities
16-45    for improving grant management through:
16-46                (1)  improved technology; and
16-47                (2)  sharing state information resources.
16-48          (f)  Not later than September 1, 2002, the department shall
16-49    report on the findings of the study to:
16-50                (1)  the governor;
16-51                (2)  the lieutenant governor; and
16-52                (3)  the speaker of the house of representatives.
16-53          (g)  If the report recommends implementation of a statewide
16-54    electronic grants management system, the department may develop a
16-55    plan and begin implementation of a statewide electronic grants
16-56    management system based on the plan, the report's recommendations,
16-57    and the findings of the study.
16-58                      ARTICLE 6.  CONTRACT MANAGEMENT
16-59          SECTION 6.01.  USE OF LOCAL GOVERNMENT CONTRACTS.  Section
16-60    2155.079, Government Code, is amended to read as follows:
16-61          Sec. 2155.079.  BUYING UNDER CONTRACT ESTABLISHED BY AGENCY
16-62    OTHER THAN COMMISSION.  (a)  In this section, "local government"
16-63    means a county, municipality, special district, school district,
16-64    junior college district, or other political subdivision of the
16-65    state.
16-66          (b)  The commission shall adopt rules specifying the
16-67    circumstances under which it is not advantageous for the state to
16-68    allow a state agency to purchase goods or services under a contract
16-69    made by:
 17-1                (1)  another state agency other than the commission; or
 17-2                (2)  a local government.
 17-3          (c) [(b)]  If commission rules allow other agencies to make
 17-4    purchases under a contract entered into by an agency using
 17-5    delegated purchasing authority, the agency purchasing under
 17-6    delegated authority may offer the goods or services available under
 17-7    the contract to other agencies or local governments [only if the
 17-8    agency first:]
 17-9                [(1)  establishes that the goods or services being
17-10    offered under its contract are not available under a contract
17-11    administered by the commission; and]
17-12                [(2)  informs the commission of the terms of the
17-13    contract and the capabilities of the vendor].
17-14          SECTION 6.02.  ADOPTION OF RULES.  Not later than February
17-15    28, 2002, the General Services Commission shall adopt the rules
17-16    required by Section 2155.079, Government Code, as amended by this
17-17    article.
17-18                ARTICLE 7.  COLLABORATIVE COMMUNITY NETWORK
17-19          SECTION 7.01.  USE OF NETWORK.  Section 2170.004, Government
17-20    Code, is amended to read as follows:
17-21          Sec. 2170.004.  CONTRACTS WITH ENTITIES OTHER THAN STATE
17-22    AGENCIES.  The commission may contract for use of the consolidated
17-23    telecommunications system with:
17-24                (1)  each house of the legislature;
17-25                (2)  a legislative agency;
17-26                (3)  an agency that is not a state agency as defined by
17-27    Section 2151.002; [and]
17-28                (4)  a political subdivision, including a county,
17-29    municipality, or district; or
17-30                (5)  a collaborative community network in which one or
17-31    more political subdivisions participate.
17-32          SECTION 7.02.  MAINTENANCE.  Section 2170.051, Government
17-33    Code, is amended by adding Subsection (e) to read as follows:
17-34          (e)  The commission may contract for necessary support and
17-35    maintenance of the consolidated telecommunications system resulting
17-36    from collaborative community network participation.
17-37          SECTION 7.03.  COST SCHEDULE.  Section 2170.057, Government
17-38    Code, is amended by adding Subsection (e) to read as follows:
17-39          (e)  The commission, in cooperation with the
17-40    telecommunications planning group, shall develop a cost schedule
17-41    for charging a political subdivision or a consortium of one or more
17-42    political subdivisions and other entities for use of the
17-43    consolidated telecommunications system for operating a
17-44    collaborative community network.  Charges for services described by
17-45    this subsection may be based on costs to the system in addition to
17-46    proportionate usage, including support and maintenance costs
17-47    associated with community computer network use.
17-48          SECTION 7.04.  Section 57.042, Utilities Code, is amended by
17-49    adding Subdivision (12) to read as follows:
17-50                (12)  "Telecommunications planning group" means the
17-51    group organized under Subchapter H, Chapter 2054, Government Code.
17-52          SECTION 7.05.  FEDERAL GRANTS.  Section 57.045, Utilities
17-53    Code, is amended by adding Subsection (e) to read as follows:
17-54          (e)  The board, in cooperation with the governor and the
17-55    telecommunications planning group, shall attempt to acquire and
17-56    ensure the use of any grant funding available from the federal
17-57    government for:
17-58                (1)  statewide or community networking solutions,
17-59    including initiatives described by Section 57.047; and
17-60                (2)  regional or community technology education
17-61    initiatives.
17-62          SECTION 7.06.  USE OF MONEY.  Subsection (b), Section 57.046,
17-63    Utilities Code, is amended to read as follows:
17-64          (b)  The board shall use money in the qualifying entities
17-65    account for any purpose authorized by this subchapter, including:
17-66                (1)  equipment;
17-67                (2)  wiring;
17-68                (3)  material;
17-69                (4)  program development;
 18-1                (5)  training;
 18-2                (6)  installation costs; [and]
 18-3                (7)  collaborative community networks; and
 18-4                (8)  a statewide telecommunications network.
 18-5          SECTION 7.07.  GRANT AND LOAN PROGRAM.  Section 57.047,
 18-6    Utilities Code, is amended by amending Subsections (c) through (f)
 18-7    and adding Subsections (g) and (h) to read as follows:
 18-8          (c)  The board may award a grant or loan for a collaborative
 18-9    community network to a consortium of one or more political
18-10    subdivisions, educational institutions, libraries, telemedicine
18-11    centers, or other entities.  The grant or loan may be used only for
18-12    telecommunications infrastructure and equipment, local-area network
18-13    wiring and cabling, and local-area network hub equipment, including
18-14    wireless devices, to support the development of local-area and
18-15    wide-area computer networks for the consortium or to permit access
18-16    of a collaborative community network to the consolidated
18-17    telecommunications system operated under Chapter 2170, Government
18-18    Code.  The grant or loan may be used to acquire personal computers,
18-19    software, or related equipment only if the board finds the
18-20    acquisition necessary for the implementation of collaborative
18-21    community networking.  As a condition of a grant or loan under this
18-22    subsection, the board shall require the consortium to design for
18-23    its network an Internet site that meets the interface standards
18-24    established for TexasOnline, as defined by Section 2054.003,
18-25    Government Code.  The board shall award grants and loans under this
18-26    subsection through a competitive and collaborative application
18-27    process to select collaborative community networks that show the
18-28    best potential for being self-sustaining after funding under this
18-29    subsection expires.
18-30          (d)  In awarding a grant or loan under this subchapter, the
18-31    board shall give priority to a project or proposal that:
18-32                (1)  represents collaborative efforts involving more
18-33    than one political subdivision, school, university, or library;
18-34                (2)  contributes matching funds from another source;
18-35                (3)  shows promise of becoming self-sustaining;
18-36                (4)  helps users of information learn new ways to
18-37    acquire and use information through telecommunications;
18-38                (5)  extends specific educational information and
18-39    knowledge services to a group not previously served, especially a
18-40    group in a rural or remote area;
18-41                (6)  results in more efficient or effective learning
18-42    than through conventional teaching;
18-43                (7)  improves the effectiveness and efficiency of
18-44    health care delivery; or
18-45                (8)  takes advantage of distance learning opportunities
18-46    in a rural or urban school district with a:
18-47                      (A)  disproportionate number of at-risk youths;
18-48    or
18-49                      (B)  high dropout rate.
18-50          (e) [(d)]  In distributing money to public schools, the board
18-51    shall:
18-52                (1)  consider the relative property wealth per student
18-53    of the school districts that receive the money; and
18-54                (2)  recognize the unique needs of rural communities.
18-55          (f)  The board shall establish a goal of awarding
18-56    collaborative community network grants and loans under Subsection
18-57    (c) of not less than $5 million each year and shall set priorities
18-58    for awarding additional grant funding for collaborative community
18-59    networking initiatives from available money.
18-60          (g) [(e)]  If a board member is an employee of an entity that
18-61    applies for a grant or loan under this subchapter, the board
18-62    member, before a vote on the grant or loan, shall disclose the fact
18-63    of the member's employment.  The disclosure must be entered into
18-64    the minutes of the meeting.  The board member may not vote on or
18-65    otherwise participate in the awarding of the grant or loan.  If the
18-66    board member does not comply with this subsection, the entity is
18-67    not eligible for the grant or loan.
18-68          (h) [(f)]  A grant or loan awarded under this section is
18-69    subject to the limitations prescribed by Section 57.046.
 19-1          SECTION 7.08.  STUDY.  (a)  The Department of Information
 19-2    Resources shall conduct a study of the feasibility of creating
 19-3    regional technology centers with membership composed of political
 19-4    subdivisions of each region of this state to foster collaborative
 19-5    community networking by:
 19-6                (1)  establishing and promoting independently funded
 19-7    community technology centers to help residents and business
 19-8    entities in gaining access to Internet information and resources;
 19-9                (2)  providing technical support to political
19-10    subdivisions regarding community networking;
19-11                (3)  eliminating connectivity barriers among
19-12    governmental units; and
19-13                (4)  coordinating access to geographical information
19-14    system information for its members, especially for those members
19-15    that otherwise would not have the necessary infrastructure,
19-16    equipment, or personnel to use the information.
19-17          (b)  The study must include an evaluation of the utility of
19-18    coordinating efforts described by Subsection (a)(4) of this section
19-19    among regional technology centers, community technology centers,
19-20    and the proposed Texas Geography Network, if the network is
19-21    created.
19-22          (c)  Not later than October 1, 2002, the Department of
19-23    Information Resources shall report the results of the study to the
19-24    governor, lieutenant governor, speaker of the house of
19-25    representatives, and comptroller of public accounts.
19-26                          ARTICLE 8.  EMPLOYMENT
19-27          SECTION 8.01.  CREATION OF ONLINE EMPLOYMENT OPENINGS SYSTEM.
19-28    Subchapter A, Chapter 656, Government Code, is amended by adding
19-29    Sections 656.002 and 656.003 to read as follows:
19-30          Sec. 656.002.  ONLINE EMPLOYMENT OPENINGS SYSTEM.  (a)  In
19-31    this section, "state agency" has the meaning assigned by Section
19-32    2054.003, except that the term does not include a university system
19-33    or institution of higher education as defined by Section 61.003,
19-34    Education Code.
19-35          (b)  The Department of Information Resources shall work with
19-36    the Texas Workforce Commission and other state agencies to create a
19-37    system for listing state agency employment openings on the
19-38    Internet.
19-39          (c)  Characteristics of the system must include to the extent
19-40    feasible:
19-41                (1)  the use of existing technical infrastructure and
19-42    specialty job bulletin boards when the cost is equal to or less
19-43    than the cost of building a separate infrastructure;
19-44                (2)  real-time communication between an applicant for
19-45    state employment and a state agency;
19-46                (3)  immediate matching of an applicant to a listing
19-47    based on the applicant's qualifications;
19-48                (4)  the ability to allow an applicant to complete one
19-49    state application online and enter the application in a single
19-50    database from which the applicant may electronically send the
19-51    application to multiple state agencies;
19-52                (5)  the ability to allow an applicant to enter a
19-53    resume into an online database from which the applicant may
19-54    electronically send the resume to a state agency;
19-55                (6)  the ability of a state agency to list employment
19-56    openings electronically with limited keystrokes from one Internet
19-57    site; and
19-58                (7)  the ability to generate management information
19-59    such as the number of visits to a state agency employment listing,
19-60    the number of applicants for each opening, the number of applicants
19-61    hired for each listing, the time from listing to filling an
19-62    opening, and the frequency and volume of listings by type.
19-63          Sec. 656.003.  ACCESS TO EMPLOYMENT OPENINGS INFORMATION.
19-64    The Texas Workforce Commission shall make computers available to
19-65    the public at its field offices to ensure access to information
19-66    about employment openings.
19-67          SECTION 8.02.  LISTING OF JOB NOTICES.  Section 656.024,
19-68    Government Code, is amended to read as follows:
19-69          Sec. 656.024.  PUBLIC NOTICE OF JOB VACANCIES.  The
 20-1    commission shall publicly list, in accordance with the commission's
 20-2    procedures, [for at least 10 working days,] each notice of a job
 20-3    vacancy delivered under Section 656.022 [unless the commission is
 20-4    sooner notified by the state agency having the vacancy that the
 20-5    vacancy has been filled].
 20-6               ARTICLE 9.  ADDITIONAL REPORTING REQUIREMENTS
 20-7          SECTION 9.01.  STUDY.  (a)  Not later than September 1, 2002,
 20-8    the Department of Information Resources shall study the
 20-9    instructions used for preparing agency strategic plans under
20-10    Section 2054.095, Government Code.  The study must:
20-11                (1)  examine ways to ensure that plans are timely and
20-12    useful for state agencies and for the strategic planning process;
20-13    and
20-14                (2)  consider whether changes in the instructions are
20-15    needed regarding the content, frequency, and use of strategic
20-16    plans.
20-17          (b)  The Department of Information Resources shall adopt
20-18    revised instructions under Section 2054.095, Government Code, based
20-19    on the results of the study.
20-20          SECTION 9.02.  SPECIFICATIONS FOR ELECTRONIC DATA
20-21    CLEARINGHOUSE; REPORT.  (a)  In this section, "department" means
20-22    the Department of Information Resources.
20-23          (b)  The department, in coordination with the comptroller of
20-24    public accounts and other state agencies, local governments,
20-25    federal agencies, the Texas Conference of Urban Counties, the Texas
20-26    Association of Counties, and the Texas Municipal League, shall
20-27    develop specifications, including procedures and implementation
20-28    methods, for a statewide electronic data clearinghouse.  The
20-29    department shall develop options for funding the maintenance or
20-30    expansion of the clearinghouse, such as using resources from
20-31    participating governmental entities to recoup the costs.  Each
20-32    option must address the potential impact on participation by
20-33    governmental entities.  Not later than January 1, 2003, the
20-34    department shall provide a report containing the recommendations,
20-35    specifications, and funding options developed under this subsection
20-36    to:
20-37                (1)  the governor;
20-38                (2)  the lieutenant governor; and
20-39                (3)  the speaker of the house of representatives.
20-40          (c)  Not later than August 31, 2003, the department shall
20-41    develop policies, procedures, data standards, training materials,
20-42    and perform any other duties necessary to prepare for the
20-43    establishment of the clearinghouse by August 31, 2004.
20-44          SECTION 9.03.  REPORT ON REPORTING REQUIREMENTS FOR COUNTIES
20-45    AND MUNICIPALITIES.  (a)  In this section, "department" means the
20-46    Department of Information Resources.
20-47          (b)  The department shall comprehensively examine all state
20-48    reporting requirements for counties and municipalities.  The goal
20-49    of the examination is to:
20-50                (1)  minimize the amount of reporting requirements;
20-51                (2)  standardize state reporting requirements;
20-52                (3)  consolidate reports;
20-53                (4)  eliminate reports that are no longer necessary;
20-54                (5)  improve access to data by all levels of government
20-55    and the public; and
20-56                (6)  automate reporting.
20-57          (c)  The examination must include an inventory of all reports
20-58    that counties and municipalities must produce in response to state
20-59    requirements.  The inventory must also show the current status of
20-60    electronic reporting.
20-61          (d)  Not later than January 15, 2002, the Legislative
20-62    Oversight Committee for Electronic Government Projects created
20-63    under Section 2055.152, Government Code, as added by Article 1 of
20-64    this Act, shall appoint a working group composed of representatives
20-65    of the comptroller of public account's office, other state
20-66    agencies, and local governments.
20-67          (e)  Based on the examination made under Subsection (c) of
20-68    this section, and in coordination with the working group, not later
20-69    than January 1, 2003, the department shall report on its
 21-1    recommendations for streamlining and reducing reporting
 21-2    requirements on counties and municipalities to:
 21-3                (1)  the lieutenant governor;
 21-4                (2)  the speaker of the house of representatives; and
 21-5                (3)  the Legislative Oversight Committee for Electronic
 21-6    Government Projects.
 21-7          ARTICLE 10.  MISCELLANEOUS INFORMATION RESOURCES ISSUES
 21-8          SECTION 10.01.  CHIEF INFORMATION OFFICER.  Subchapter B,
 21-9    Chapter 2054, Government Code, is amended by adding Section
21-10    2054.0285 and amending Section 2054.029 to read as follows:
21-11          Sec. 2054.0285.  EXECUTIVE DIRECTOR:  CHIEF INFORMATION
21-12    OFFICER; POWERS AND DUTIES.  (a)  The board shall employ an
21-13    executive director.  The executive director is the chief
21-14    information officer for this state.
21-15          (b)  The executive director has authority for all aspects of
21-16    information technology for state agencies, including:
21-17                (1)  the use of technology to support state goals;
21-18                (2)  functional support to state agencies;
21-19                (3)  technology purchases;
21-20                (4)  deployment of new technology;
21-21                (5)  delivery of technology services; and
21-22                (6)  provision of leadership on technology issues.
21-23          Sec. 2054.029.  [EXECUTIVE DIRECTOR;] STAFF; SEPARATION OF
21-24    RESPONSIBILITIES.  (a)  The board shall employ [an executive
21-25    director and other] employees necessary to implement its duties.
21-26          (b)  The executive director or the executive director's
21-27    designee shall provide to members of the board and to the
21-28    department's employees, as often as necessary, information
21-29    regarding their qualifications for office or employment under this
21-30    chapter and their responsibilities under applicable laws relating
21-31    to standards of conduct for state officers or employees.
21-32          (c)  The board shall develop and implement policies that
21-33    clearly separate the policymaking responsibilities of the board and
21-34    the management responsibilities of the executive director and the
21-35    staff of the department.
21-36          SECTION 10.02.  VENDOR INCENTIVES.  Subchapter C, Chapter
21-37    2054, Government Code, is amended by adding Section 2054.058 to
21-38    read as follows:
21-39          Sec. 2054.058.  CONSIDERATION OF VENDOR INCENTIVES.  When
21-40    contracting with a vendor to perform a task related to an
21-41    electronic government project, the department shall consider
21-42    methods of payments, including considering whether a percentage of
21-43    money to be saved could be used to provide an incentive to the
21-44    vendor to complete the project on time and under budget.
21-45          SECTION 10.03.  PUBLIC INFORMATION EXCEPTION.  Subchapter C,
21-46    Chapter 552, Government Code, is amended by adding Section 552.136
21-47    to read as follows:
21-48          Sec. 552.136.  EXCEPTION:  GOVERNMENT INFORMATION RELATED TO
21-49    SECURITY ISSUES FOR COMPUTERS.  (a)  Information is excepted from
21-50    the requirements of Section 552.021 if it is information that
21-51    relates to computer network security or to the design, operation,
21-52    or defense of a computer network.
21-53          (b)  The following information is confidential:
21-54                (1)  a computer network vulnerability report; and
21-55                (2)  any other assessment of the extent to which data
21-56    processing operations, a computer, or a computer program, network,
21-57    system, or software of a governmental body or of a contractor of a
21-58    governmental body is vulnerable to unauthorized access or harm,
21-59    including an assessment of the extent to which the governmental
21-60    body's or contractor's electronically stored information is
21-61    vulnerable to alteration, damage, or erasure.
21-62     ARTICLE 11.  COMPTROLLER PROVISIONS ON USE OF ADVANCED EQUIPMENT,
21-63          DATABASES, AND DELEGATION OF TASKS TO OUTSIDE PERSONNEL
21-64          SECTION 11.01.  ADVANCED DATABASE FOR AUDITS.  Subchapter A,
21-65    Chapter 111, Tax Code, is amended by adding Section 111.0034 to
21-66    read as follows:
21-67          Sec. 111.0034.  ADVANCED DATABASE SYSTEM FOR AUDITS.
21-68    (a)  The comptroller shall develop an advanced electronic audit
21-69    database system for use by the comptroller's audit division.  The
 22-1    system must:
 22-2                (1)  centralize management of audit transaction data;
 22-3                (2)  enhance the quality control of data; and
 22-4                (3)  be compatible with other data systems of the
 22-5    state.
 22-6          (b)  The comptroller may contract with a vendor to develop or
 22-7    implement the system.
 22-8          (c)  If the comptroller contracts with a vendor to develop or
 22-9    implement the system, the comptroller must protect any confidential
22-10    information provided to the vendor.  A person who receives
22-11    confidential information under this section and each employee or
22-12    agent of that person is subject to the same prohibitions against
22-13    disclosure of the information, and the same penalties and sanctions
22-14    for improper disclosure, that apply to the comptroller.
22-15          SECTION 11.02.  ADVANCED DATABASE FOR TAX COLLECTIONS.  The
22-16    heading for Section 111.0035, Tax Code, is amended to read as
22-17    follows:
22-18          Sec. 111.0035.  ADVANCED DATABASE SYSTEM FOR TAX COLLECTIONS.
22-19          SECTION 11.03.  OUTSIDE PERSONNEL.  Subchapter A, Chapter
22-20    111, is amended by adding Section 111.0045 to read as follows:
22-21          Sec. 111.0045.  USE OF OUTSIDE PERSONNEL; DELEGATION OF
22-22    POWERS.  (a)  As necessary to enhance productivity, the comptroller
22-23    may employ or contract for the services of accountants, assistants,
22-24    auditors, clerks, information technology specialists, and
22-25    investigators to:
22-26                (1)  provide or use the equipment acquired under
22-27    Subchapter G; and
22-28                (2)  assist with the administration of this code.
22-29          (b)  The comptroller may delegate to persons employed or
22-30    contracted under this section the power to perform duties as
22-31    required.
22-32          SECTION 11.04.  ADVANCED EQUIPMENT.  Chapter 111, Tax Code,
22-33    is amended by adding Subchapter G to read as follows:
22-34               SUBCHAPTER G.  ADVANCED TECHNOLOGY EQUIPMENT
22-35          Sec. 111.351.  WIRELESS EQUIPMENT FOR AUDITORS.  The
22-36    comptroller shall acquire wireless communication equipment for use
22-37    by its auditors, including wireless modems for laptop computers for
22-38    high-speed, wireless access to comptroller systems.
22-39          Sec. 111.352.  COMPUTER AND WIRELESS EQUIPMENT FOR
22-40    ENFORCEMENT STAFF.  (a)  The comptroller shall acquire portable
22-41    computers with remote or wireless communications equipment for use
22-42    by its enforcement staff.
22-43          (b)  The portable computers acquired under this section must
22-44    be integrated with an electronic signature capturing system and
22-45    portable printing capabilities to enhance the security of
22-46    collections made under this chapter.
22-47          (c)  The equipment must enable enforcement staff to:
22-48                (1)  verify taxpayer claims;
22-49                (2)  update taxpayer information from the field; and
22-50                (3)  facilitate account updates.
22-51          Sec. 111.353.  ADVANCED SCANNERS FOR FIELD OFFICES.  The
22-52    comptroller shall acquire advanced scanners for its field offices.
22-53    The scanners must enable enforcement officers to scan enforcement
22-54    data directly into comptroller databases without requiring later
22-55    manual entry.
22-56                        ARTICLE 12.  EFFECTIVE DATE
22-57          SECTION 12.01.  EFFECTIVE DATE.  This Act takes effect
22-58    immediately if it receives a vote of two-thirds of all the members
22-59    elected to each house, as provided by Section 39, Article III,
22-60    Texas Constitution.  If this Act does not receive the vote
22-61    necessary for immediate effect, this Act takes effect September 1,
22-62    2001.
22-63                                 * * * * *