By:  Isett, Swinford (Senate Sponsor - Duncan)                    H.B. No. 1516
	(In the Senate - Received from the House May 16, 2005; 
May 17, 2005, read first time and referred to Committee on 
Government Organization; May 20, 2005, reported adversely, with 
favorable Committee Substitute by the following vote:  Yeas 6, 
Nays 0; May 20, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 1516                                   By:  Eltife
A BILL TO BE ENTITLED
AN ACT
relating to the Department of Information Resources' management of 
state electronic services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
ARTICLE 1.  STATE ELECTRONIC PROJECTS
	SECTION 1.01.  Subchapter C, Chapter 2054, Government Code, 
is amended by adding Section 2054.0565 to read as follows:
	Sec. 2054.0565.  USE OF CONTRACTS BY OTHER GOVERNMENTAL 
ENTITIES.  (a)  The department may include terms in a procurement 
contract entered into by the department, including a contract 
entered into under Section 2157.068, that allow the contract to be 
used by another state agency, a political subdivision of this 
state, or a governmental entity of another state.
	(b)  A political subdivision that purchases an item or 
service using a contract under this section satisfies any other law 
requiring the political subdivision to seek competitive bids for 
that item or service.
	SECTION 1.02.  Section 2054.071, Government Code, is amended 
to read as follows:
	Sec. 2054.071.  IDENTITY OF MANAGER; CONSOLIDATION.  
(a)  The individual required to sign a state agency's strategic 
plan under Subchapter E, or that individual's designated 
representative, shall serve as the agency's information resources 
manager.
	(b)  A representative designated under Subsection (a) may be 
designated to serve as a joint information resources manager by two 
or more state agencies.  The department must approve the joint 
designation.
	SECTION 1.03.  Section 2054.074, Government Code, is amended 
to read as follows:
	Sec. 2054.074.  RESPONSIBILITY TO PREPARE OPERATING PLANS.  
(a)  The information resources manager shall prepare the biennial 
operating plans under Subchapter E.
	(b)  A joint information resources manager may, to the extent 
appropriate, consolidate the operating plans of each agency for 
which the manager serves under Section 2054.071.
	SECTION 1.04.  Section 2054.096, Government Code, is amended 
by adding Subsection (c) to read as follows:
	(c)  Each state agency, other than an institution of higher 
education, shall use state commodity hardware configurations as a 
part of the agency's planning under this section.  The department 
shall specify the state commodity hardware configurations in its 
instructions for the preparations of agency strategic plans.
	SECTION 1.05.  Subchapter E, Chapter 2054, Government Code, 
is amended by adding Section 2054.1015 to read as follows:
	Sec. 2054.1015.  PLANNED PROCUREMENT SCHEDULES FOR 
COMMODITY ITEMS.  (a)  In this section:
		(1)  "Commodity items" has the meaning assigned by 
Section 2157.068. 
		(2)  "State agency" does not include an institution of 
higher education.
	(b)  A state agency must provide a planned procurement 
schedule for commodity items to the department before the agency's 
operating plan may be approved under Section 2054.102.
	(c)  The department shall use information contained in the 
schedules to plan future vendor solicitations of commodity items.
	(d)  A state agency shall notify the department, the 
Legislative Budget Board, and the state auditor's office if the 
agency makes a substantive change to a planned procurement schedule 
for commodity items.
	SECTION 1.06.  Chapter 2054, Government Code, is amended by 
adding Subchapter J to read as follows:
SUBCHAPTER J.  TEXAS PROJECT DELIVERY FRAMEWORK
	Sec. 2054.301.  APPLICABILITY.  This subchapter applies only 
to a major information resources project.
	Sec. 2054.302.  GUIDELINES; FORMS.  (a)  A state agency 
shall prepare each document required by this subchapter in a manner 
consistent with department guidelines.
	(b)  The department, in consultation with the Legislative 
Budget Board and state auditor's office, shall develop and provide 
guidelines and forms for the documents required by this subchapter.
	(c)  The department shall work with state agencies in 
developing the guidelines and forms.
	Sec. 2054.303.  BUSINESS CASE AND STATEWIDE IMPACT ANALYSIS.  
(a)  For each proposed major information resources project, a state 
agency must prepare:
		(1)  a business case providing the initial 
justification for the project, including the anticipated return on 
investment in terms of cost savings and efficiency for the project; 
and
		(2)  a statewide impact analysis of the project's 
effect on the state's common information resources infrastructure, 
including the possibility of reusing code or other resources.
	(b)  The agency shall file the documents with the department, 
Legislative Budget Board, and state auditor's office when the 
agency files its legislative appropriations request.
	(c)  The department shall use the analysis to ensure that the 
proposed project does not unnecessarily duplicate existing 
statewide information resources technology.
	Sec. 2054.304.  PROJECT PLANS.  (a)  A state agency shall 
develop a project plan for each major information resources 
project.
	(b)  Except as provided by Subsection (c), the state agency 
must file the project plan with the quality assurance team and the 
Texas Building and Procurement Commission before the agency:
		(1)  spends more than 10 percent of allocated funds for 
the project; or
		(2)  first issues a vendor solicitation for the 
project.             
	(c)  Unless the project plan has been filed under this 
section:       
		(1)  the Texas Building and Procurement Commission may 
not issue a vendor solicitation for the project; and
		(2)  the agency may not post a vendor solicitation for 
the project in the state business daily under Section 2155.083.
	Sec. 2054.305.  PROCUREMENT PLAN AND METHOD FOR MONITORING 
CONTRACTS.  Before issuing a vendor solicitation for a project, the 
state agency must develop, consistent with department guidelines:
		(1)  a procurement plan with anticipated service levels 
and performance standards for each vendor; and
		(2)  a method to monitor changes to the scope of each 
contract.      
	Sec. 2054.306.  POST-IMPLEMENTATION REVIEW.  After 
implementation of a major information resources project, a state 
agency shall prepare a post-implementation review.  The agency 
shall provide the review to the agency's executive director, the 
department, and the state auditor's office.
	Sec. 2054.307.  APPROVAL OF DOCUMENTS AND CONTRACT CHANGES.  
(a)  A state agency's executive director, information resources 
manager, designated project manager, and the agency employee in 
charge of information security for the agency must approve and 
sign:
		(1)  each document required by this subchapter; and                    
		(2)  if the department requires the approval and 
signatures, any other document related to this subchapter.
	(b)  The state agency's executive director must approve a 
proposed contract amendment or change order for a major information 
resources project if the amendment or change order:
		(1)  changes the monetary value of the contract by more 
than 10 percent; or
		(2)  significantly changes the completion date of the 
contract.      
	SECTION 1.07.  Chapter 2054, Government Code, is amended by 
adding Subchapter L to read as follows:
SUBCHAPTER L.  STATEWIDE TECHNOLOGY CENTERS
	Sec. 2054.375.  DEFINITION.  In this subchapter, "statewide 
technology center" means a statewide technology center established 
or operated under this subchapter.
	Sec. 2054.376.  APPLICABILITY.  (a)  This subchapter 
applies to all information resources technologies, other than 
telecommunications services, that are:
		(1)  obtained by a state agency using state money; or                  
		(2)  used by a state agency.                                           
	(b)  This subchapter does not apply to:                                 
		(1)The Department of Public Safety's use for criminal 
justice or homeland security purposes of a federal database or 
network;
		(2)  A Texas equivalent of a database or network 
described by Subdivision (1) that is managed by the Department of 
Public Safety;
		(3)  the uniform statewide accounting system, as that 
term is used in Subchapter C, Chapter 2101;
		(4)  the state treasury cash and treasury management 
system; or      
		(5)  a database or network managed by the comptroller 
to:            
			(A)  collect and process multiple types of taxes 
imposed by the state, or
			(B)  manage or administer fiscal, financial, 
revenue and expenditure activities of the state under Chapter 403 
and Chapter 404.
	Sec. 2054.377.  INSTITUTIONS OF HIGHER EDUCATION.  The 
department may not establish or expand a statewide technology 
center that includes participation by an institution of higher 
education unless the Information Technology Council for Higher 
Education agrees to the establishment or expansion.
	Sec. 2054.378.  SCOPE OF OPERATION OF CENTERS.  (a)  The 
department may operate statewide technology centers to provide two 
or more state agencies, on a cost-sharing basis, services relating 
to:
		(1)  information resources and information resources 
technology; and 
		(2)  the deployment and development of statewide 
applications.       
	(b)  The department may operate a statewide technology 
center directly or contract with another person to operate the 
center.
	Sec. 2054.379.  RULES.  The department shall adopt rules and 
guidelines to implement this subchapter.
	Sec. 2054.380.  FEES.  The department shall set and charge a 
fee to each state agency that receives a service from a statewide 
technology center in an amount sufficient to cover the direct and 
indirect cost of providing the service.
	Sec. 2054.381.  CONTRACTING; HISTORICALLY UNDERUTILIZED 
BUSINESSES.  (a)  In any procurement related to the establishment 
of a statewide technology center, the department shall maximize 
vendor competition and, to the extent feasible and cost-effective, 
interoperability.
	(b)  In contracting under this subchapter, the department 
shall follow the requirements of Chapter 2161 and related rules 
regarding historically underutilized businesses.
	(c)  The department shall provide to all qualified 
businesses the opportunity to compete for department contracts 
under this subchapter.
	Sec. 2054.382.  STATEWIDE TECHNOLOGY CENTERS FOR DATA OR 
DISASTER RECOVERY SERVICES; USE REQUIRED.  (a)  The department 
shall manage the operations of statewide technology centers that 
provide data center services or disaster recovery services for two 
or more state agencies, including management of the operations of 
the center on the campus of Angelo State University.
	(b)  The department by rule shall describe the data services 
provided by statewide technology centers.
	(c)  A state agency may not spend appropriated money to 
contract or issue purchase orders for data center services or 
disaster recovery services, including maintenance of those 
services, unless the executive director approves the expense.  The 
department may establish appropriate thresholds and procedures for 
securing approval under this subsection.
	(d)  The Legislative Budget Board may not grant prior 
approval under Section 2054.386 in relation to services provided 
under this section.
	Sec. 2054.383.  ESTABLISHMENT OF ADDITIONAL STATEWIDE 
TECHNOLOGY CENTERS.  (a)  The department may establish additional 
statewide technology centers as provided by this section.
	(b)  The department may not establish a center under this 
section unless:
		(1)  the governor approves the establishment;                          
		(2)  the Legislative Budget Board approves the 
expenditures necessary for the establishment; and
		(3)  the executive director determines in writing that  
consolidating operations or services of selected state agencies 
will promote efficiency and effectiveness and provide the best 
value for the state.
	(c)  In the written determination under Subsection (b)(3), 
the executive director shall identify the selected state agencies 
that will be required to participate in the new center.
	Sec. 2054.384.  COST AND REQUIREMENTS ANALYSIS.  (a)  The 
department shall conduct a cost and requirements analysis for each 
state agency that the department intends to select for 
participation in a statewide technology center.
	(b)  A selected state agency shall identify its particular 
requirements, operations costs, and requested service levels for 
the department.  The department may require a state agency to 
validate or resubmit data related to these factors.  The department 
shall fulfill the requirements and service levels of each state 
agency to the extent possible.
	Sec. 2054.385.  NOTICE OF SELECTION.  After completion of 
the cost and requirements analysis for each state agency under 
Section 2054.384, the department shall provide notice to each state 
agency selected to receive services or operations through the 
statewide technology center.  The notice must include:
		(1)  the state agency operations selected for 
consolidation at a statewide technology center;
		(2)  the scope of services to be provided to the agency;               
		(3)  a schedule of anticipated costs for the agency; 
and             
		(4)  the implementation schedule for that agency.                      
	Sec. 2054.386.  INTERAGENCY CONTRACT; PRIOR APPROVAL OF 
EXPENDITURES.  (a)  A state agency that is selected under Section 
2054.385 to receive services or to have operations performed 
through a statewide technology center may not, except as provided 
by Subsection (b), spend appropriated money for the identified 
operations and services without the prior approval of the 
Legislative Budget Board.
	(b)  Unless the Legislative Budget Board grants prior 
approval for the selected state agency to spend appropriated money 
for the identified operations or services in another specified 
manner, the selected agency shall enter into an interagency 
contract with the department to receive the identified services and 
have the identified operations performed through the statewide 
technology center.  Amounts charged to the selected agency under 
the interagency contract must be based on the fees set by the 
department under Section 2054.380 but may not exceed the amounts 
expected to be necessary to cover the direct and indirect costs of 
performing operations and providing services under the contract.  
Before executing an interagency contract or alternatively 
receiving prior approval from the Legislative Budget Board under 
this section, the state agency may only spend appropriated money 
for the selected service or operation if the executive director 
approves the expense.
	(c)  Not later than the 30th business day after the date the 
selected state agency is notified of its selection under Section 
2054.385, the agency may request the Legislative Budget Board to 
grant its prior approval for the agency to spend appropriated money 
for the identified operations or services in a manner other than 
through an interagency contract with the department under 
Subsection (b).
	(d)  The request to the Legislative Budget Board must:                  
		(1)  be in writing;                                                    
		(2)  include a copy of the selection notice made by the 
executive director; and
		(3)  demonstrate that the decision of the executive 
director to select the agency will probably:
			(A)  fail to achieve meaningful cost savings for 
the state; or      
			(B)  result in an unacceptable loss of 
effectiveness or operational efficiency.
	(e)  If the Legislative Budget Board determines that an 
interagency contract between the department and the selected state 
agency under Subsection (b) will fail to achieve meaningful cost 
savings for the state or result in an unacceptable loss of 
effectiveness or operational efficiency at the selected agency, the 
Legislative Budget Board may grant its prior approval for the 
selected agency to spend appropriated money for the identified 
operations or services in another specified manner, in which event 
the selected agency is not required to enter into an interagency 
contract under Subsection (b).
	(f)  The Legislative Budget Board shall notify the state 
agency, the executive director, and the comptroller of its 
decision.
	Sec. 2054.387.  INTERAGENCY CONTRACT; COMPLIANCE WITH 
SERVICE LEVELS.  The department shall ensure compliance with 
service levels agreed to in an interagency contract executed under 
this subchapter.
	Sec. 2054.388.  TRANSFER OF OWNERSHIP.  (a)  The  
department, subject to the governor's approval, may require a state 
agency that enters into an interagency contract under Section 
2054.386 to transfer to the department ownership, custody, or 
control of resources that the department, in consultation with the 
agency, determines are used to support the operations or services 
selected under Section 2054.385.  These resources may include:
		(1)  information resources;                                            
		(2)  information resources technologies;                               
		(3)  full-time equivalent positions; and                               
		(4)  any other resources determined necessary by the 
department to support the selected operations or services.
	(b)  The department shall advise the governor, lieutenant 
governor, speaker of the house of representatives, Legislative 
Budget Board, and state auditor's office regarding the expected 
savings to be received for each state agency from which ownership, 
custody, or control is transferred under this section.
	(c)  The department and the state agency shall work to 
reconcile any federal funding issues that arise out of a transfer 
under this section.  The department, subject to the governor's 
approval, shall exclude applicable resources from the transfer if 
the federal funding issues cannot be reconciled.
	(d)  Chapter 2175 does not apply to information resources or 
information resources technologies transferred under this section.
	Sec. 2054.389.  TRANSITION SCHEDULES.  The department shall 
establish transition schedules for the transfer of state agency 
operations and services to statewide technology centers under this 
subchapter.
	Sec. 2054.390.  MIGRATION OF SERVICES.  (a)  The department 
shall prioritize the migration of services to the statewide 
technology center system established under this subchapter based on 
the size of the current technology center operational environment 
at a state agency, with the largest 25 technology center 
environments ranking highest in priority.
	(b)  Unless the executive director determines that a 
migration under this section is not cost-effective, the department 
shall ensure the migration of at least three technology center 
environments to the statewide technology center system each fiscal 
year.  This subsection expires September 1, 2013.
	(c)  A state agency shall comply with the department's 
request to migrate under this section.
	(d)  Any consolidation plan adopted by the department to 
execute this section must prioritize and fully use the existing 
capacity of the State Data Center located on the campus of Angelo 
State University.
	Sec. 2054.391.  USE OF STATEWIDE TECHNOLOGY CENTERS 
REQUIRED.  (a)  A state agency may not transfer services from a 
statewide technology center unless the executive director and the 
governor approve the transfer.
	(b)  If the department becomes aware that a state agency is 
not using a statewide technology center for operations or services 
in accordance with the interagency contract entered into under 
Section 2054.386 and as directed by the department, the department 
shall notify the comptroller, the Legislative Budget Board, the 
state auditor's office, and the affected state agency of the 
violation.
	(c)  After notification under Subsection (b), the state 
agency may not spend appropriated money for operations or services 
the agency was selected to receive through a statewide technology 
center without the prior approval of the executive director.
	SECTION 1.08.  Section 2157.068, Government Code, is amended 
to read as follows:
	Sec. 2157.068.  PURCHASE OF COMMODITY [SOFTWARE] ITEMS.  
(a)  In this section, "commodity[:
		[(1)  "Commodity software] items" means commercial 
software, hardware, or technology services, other than 
telecommunications services, [for personal computers] that are
[is] generally available to businesses or the public and for which 
the department determines that a reasonable demand exists in two or 
more state agencies.  The term includes seat management, through 
which a state agency transfers its personal computer equipment and 
service responsibilities to a private vendor to manage the personal 
computing needs for each desktop in the state agency, including all 
necessary hardware, software, and support services.
		[(2)  "Department" means the Department of Information 
Resources.]
	(b)  The department shall negotiate with catalog information 
systems vendors to attempt to obtain a favorable price for all of 
state government on licenses for commodity [software] items, based 
on the aggregate volume of purchases expected to be made by the 
state.  The terms and conditions of a license agreement between a 
vendor and the department under this section may not be less 
favorable to the state than the terms of similar license agreements 
between the vendor and retail distributors.
	(c)  In contracting for commodity items under this section, 
the department shall make good faith efforts to provide contracting 
opportunities for, and to increase contract awards to, historically 
underutilized businesses.
	(d)  The department may charge a reasonable administrative 
fee to a state agency, [or] political subdivision of this state, or 
governmental entity of another state that purchases commodity 
[software] items through the department in an amount that is 
sufficient to recover costs associated with the administration of 
this section.
	(e) [(d)]  The department shall compile and maintain a list 
of commodity [software] items available for purchase through the 
department that have a lower price than the prices for commodity 
[software] items otherwise available to state agencies under this 
chapter.  The department shall make the list available on the world 
wide web or on a suitable successor to the world wide web if the 
technological developments involving the Internet make it 
advisable to do so.
	(f) [(e)]  The department may adopt rules regulating a 
purchase by a state agency of a commodity [software] item under this 
section, including a requirement that, notwithstanding other 
provisions of this chapter, the agency must make the purchase in 
accordance with a contract developed by the department unless the 
agency obtains:
		(1)  an exemption [a waiver] from the department; or
		(2)  express prior approval from the Legislative Budget 
Board for the expenditure necessary for the purchase.
	(g)  The Legislative Budget Board's approval of a biennial 
operating plan under Section 2054.102 is not an express prior 
approval for purposes of Subsection (f)(2).  A state agency must 
request an exemption from the department under Subsection (f)(1) 
before seeking prior approval from the Legislative Budget Board 
under Subsection (f)(2).
	(h)  The department shall, in cooperation with state 
agencies, establish guidelines for the classification of commodity 
items under this section.  The department may determine when a 
statewide vendor solicitation for a commodity item will reduce 
purchase prices for a state agency.
	SECTION 1.09.  Section 2170.003, Government Code, is amended 
to read as follows:
	Sec. 2170.003.  OWNERSHIP OR LEASE OF NECESSARY EQUIPMENT.  
(a)  The department may own, lease, or lease-purchase in accordance 
with Chapters 2155, 2156, 2157, and 2158 any or all of the 
facilities or equipment necessary to provide telecommunications 
services.  The department may acquire telecommunications services 
without competitive bid from the Lonestar Education and Research 
Network (LEARN) or its successors for the purposes established in 
Subsection (b).
	(b)  During an emergency, a single node failure or a 
systemwide failure of the consolidated telecommunications system, 
the department may divert telecommunications services traffic to 
the Lonestar Education and Research Network to avoid service 
interruption.  Upon resolution of the emergency and upon 
determination that the consolidated telecommunications system is 
operational, traffic will be diverted back to the consolidated 
telecommunications system.  The department may also use the 
Lonestar Education and Research Network for the purposes of latency 
tolerant data transfer of files to or from a consolidated state data 
center established and operated by the department.  The Lonestar 
Education and Research Network shall be exclusively used by the 
department only for the purposes set out in this section.
	SECTION 1.10.  Subsections (c) and (d), Section 2170.051, 
Government Code, are amended to read as follows:
	(c)  A state agency shall use the consolidated 
telecommunications system to the fullest extent possible.  A state 
agency may not acquire telecommunications services unless the 
department's executive director [telecommunications planning and 
oversight council] determines that the agency's requirement for 
telecommunications services cannot be met at a comparable cost by 
the consolidated telecommunications system.
	(d)  A state agency may not enter into or renew a contract 
with a carrier or other provider of telecommunications services 
without obtaining a waiver from the department's executive director
[telecommunications planning and oversight council] certifying 
that the requested telecommunications services cannot be provided 
at a comparable cost on the consolidated telecommunications system.  
The executive director [telecommunications planning and oversight 
council] shall evaluate requests for waivers based on 
cost-effectiveness to the state government as a whole.  A waiver may 
be granted only for a specific period and will automatically expire 
on the stated expiration date unless an extension is approved [by 
the telecommunications planning and oversight council].  A contract 
for telecommunications services obtained under waiver may not 
extend beyond the expiration date of the waiver.  If the executive 
director [telecommunications planning and oversight council] 
becomes aware of any state agency receiving telecommunications 
services without a waiver, the executive director
[telecommunications planning and oversight council] shall notify 
the agency and the comptroller.  The state agency shall have 60 days 
after notification by the executive director [telecommunications 
planning and oversight council] in which to submit a waiver request 
[to the telecommunications planning and oversight council] 
documenting the agency's reasons for bypassing the consolidated 
telecommunications system and otherwise providing all information 
required by the waiver application form.
ARTICLE 2.  CONFORMING AMENDMENTS
	SECTION 2.01.  Section 2054.003, Government Code, is amended 
by adding Subdivision (8-a) to read as follows:
		(8-a)  "Institution of higher education" has the 
meaning assigned by Section 61.003, Education Code.
	SECTION 2.02.  Section 2157.001, Government Code, is amended 
to read as follows:
	Sec. 2157.001.  DEFINITIONS.  In this chapter:                                 
		(1)  "Automated information system" includes:                                 
			(A)  the computers and computer devices on which 
an information system is automated, including computers and 
computer devices that the commission identifies in guidelines 
developed by the commission in consultation with the department
[Department of Information Resources] and in accordance with 
Chapter 2054 and rules adopted under that chapter;
			(B)  a service related to the automation of an 
information system, including computer software or computers;
			(C)  a telecommunications apparatus or device 
that serves as a component of a voice, data, or video communications 
network for transmitting, switching, routing, multiplexing, 
modulating, amplifying, or receiving signals on the network, and 
services related to telecommunications that are not covered under 
Paragraph (D); and
			(D)  for the department [Department of 
Information Resources], as telecommunications provider for the 
state, the term includes any service provided by a 
telecommunications provider, as that term is defined by Section 
51.002, Utilities Code.
		(2)  "Department" means the Department of Information 
Resources.     
	SECTION 2.03.  Section 2157.003, Government Code, is amended 
to read as follows:
	Sec. 2157.003.  DETERMINING BEST VALUE FOR PURCHASES OF 
AUTOMATED INFORMATION SYSTEMS.  "Best value" for purposes of this 
chapter means the lowest overall cost of an automated information 
system.  In determining the lowest overall cost for a purchase or 
lease of an automated information system under this chapter, the 
commission or a state agency shall consider factors including:
		(1)  the purchase price;                                                      
		(2)  the compatibility to facilitate the exchange of 
existing data;         
		(3)  the capacity for expanding and upgrading to more 
advanced levels of technology;
		(4)  quantitative reliability factors;                                        
		(5)  the level of training required to bring persons 
using the system to a stated level of proficiency;
		(6)  the technical support requirements for the 
maintenance of data across a network platform and the management of 
the network's hardware and software;
		(7)  the compliance with applicable department
[Department of Information Resources] statewide standards 
validated by criteria adopted by the department by rule; and
		(8)  applicable factors listed in Sections 2155.074 and 
2155.075.           
	SECTION 2.04.  Subsection (a), Section 2157.005, Government 
Code, is amended to read as follows:
	(a)  The commission and the department [Department of 
Information Resources], in consultation with other state agencies 
and after public comment, shall develop a technology access clause 
to be included in all contracts entered into by the state or state 
agencies that involve the acquisition of an automated information 
system.
	SECTION 2.05.  Subsection (b), Section 2157.063, Government 
Code, is amended to read as follows:
	(b)  In determining which goods or services are in the 
state's best interest, the agency shall consider:
		(1)  the installation and hardware costs;                                     
		(2)  the overall life-cycle cost of the system or 
equipment;                
		(3)  the estimated cost of employee training and 
estimated increase in employee productivity;
		(4)  the estimated software and maintenance costs; and                        
		(5)  the rules that prescribe applicable statewide 
standards adopted by the department [Department of Information 
Resources].
	SECTION 2.06.  Subsections (b) and (c), Section 2157.121, 
Government Code, are amended to read as follows:
	(b)  A state agency, other than the department [Department of 
Information Resources], shall send its proposal specifications and 
criteria to the commission for approval or request the commission 
to develop the proposal specifications and criteria.
	(c)  The department [Department of Information Resources] 
may acquire a telecommunications device, system, or service or an 
automated information system by using competitive sealed proposals 
without regard to whether the commission makes the determination 
required under Subsection (a) for other state agencies.
	SECTION 2.07.  Subsection (a), Section 2157.181, Government 
Code, is amended to read as follows:
	(a)  The commission, with the concurrence of the department
[Department of Information Resources], may negotiate with vendors 
preapproved terms and conditions to be included in contracts 
relating to the purchase or lease of a telecommunication device, 
system, or service or an automated information system awarded to a 
vendor by a state agency.
	SECTION 2.08.  Section 2157.182, Government Code, is amended 
to read as follows:
	Sec. 2157.182.  VALIDITY OF PREAPPROVED TERMS AND 
CONDITIONS; RENEGOTIATION.  (a)  Preapproved terms and conditions 
to which a vendor, the commission, and the department [Department 
of Information Resources] agree are valid for two years after the 
date of the agreement and must provide that the terms and conditions 
are to be renegotiated before the end of the two years.
	(b)  The commission and the department [Department of 
Information Resources] jointly shall establish procedures to 
ensure that terms and conditions are renegotiated before they 
expire in a contract between the vendor and a state agency.
	SECTION 2.09.  Section 2157.184, Government Code, is amended 
to read as follows:
	Sec. 2157.184.  NOTIFICATION OF STATE AGENCIES AND VENDORS.  
The commission and the department [Department of Information 
Resources] jointly shall establish procedures to notify state 
agencies and potential vendors of the provisions of this subchapter 
regarding preapproved terms and conditions.
ARTICLE 3.  REPEALER; TRANSITION; EFFECTIVE DATE
	SECTION 3.01.  Subsection (c), Section 2054.201, and Section 
2055.061, Government Code, are repealed.
	SECTION 3.02.  (a)  The Department of Information Resources 
shall conduct a statewide assessment of information technology 
security resources and practices of state agencies.
	(b)  Not later than December 31, 2005, the department shall 
report the results of its assessment to the governor, the 
lieutenant governor, the speaker of the house of representatives, 
and the state auditor's office.
	(c)  The assessment and report prepared under this section 
are confidential.  Chapter 552, Government Code, does not apply to 
the assessment or the report.
	SECTION 3.03.  (a)  The Department of Information 
Resources, in coordination with the Legislative Budget Board, the 
Texas Building and Procurement Commission, and the comptroller, 
shall analyze current automated information systems of state 
agencies to determine how the systems may be combined to more 
effectively synchronize strategic planning, budgeting, and 
reporting of technology expenditures, assets, and projects.
	(b)  Not later than December 31, 2005, the department shall 
report the results of its analysis to the governor, the lieutenant 
governor, the speaker of the house of representatives, and the 
state auditor's office.
	SECTION 3.04.  (a)  In this section:                                           
		(1)  "Department" means the Department of Information 
Resources.            
		(2)  "State agency" has the meaning assigned by Section 
2054.003, Government Code, except that the term does not include an 
institution of higher education as defined by Section 61.003, 
Education Code.
	(b)  Not later than March 31, 2006, each state agency shall 
enter into an interagency contract with the department for services 
that the agency is required to obtain through a statewide 
technology center under Subchapter L, Chapter 2054, Government 
Code, as added by this Act, that establishes a time line for the 
transfer of ownership of resources to the department in accordance 
with Subchapter L, Chapter 2054, Government Code.
	(c)  Not later than August 31 of 2006 and 2007, the 
department shall report on the status of the statewide technology 
center system migration and consolidation under Section 2054.390, 
Government Code, as added by this Act, describing reviews and 
transfers during the fiscal year, and an update on the status of any 
contracts relating to the statewide technology centers.  The 
department shall file the report with:
		(1)  the governor;                                                            
		(2)  the lieutenant governor;                                                 
		(3)  the speaker of the house of representatives;                             
		(4)  the chairs of the house and senate committees with 
primary oversight over the department;
		(5)  the chairs of the senate finance and the house of 
representatives appropriations committees;
		(6)  the state auditor's office; and                                          
		(7)  each member of the Legislative Budget Board.                             
	SECTION 3.05.  The changes in law made by this Act with 
regard to contracts apply only to a contract for which the initial 
notice soliciting bids or proposals is given on or after the 
effective date of this Act.  A contract for which the initial notice 
soliciting bids or proposals is given before that date is governed 
by the law in effect when the initial notice is given, and the 
former law is continued in effect for that purpose.
SECTION 3.06.  This Act takes effect September
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