79R14683 MXM-F


By:  Swinford, Campbell, Pitts                                    H.B. No. 2698

Substitute the following for H.B. No. 2698:                                   

By:  Cook of Navarro                                          C.S.H.B. No. 2698


A BILL TO BE ENTITLED
AN ACT
relating to the Department of Information Resources' management of state technology centers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. STATE TECHNOLOGY CENTERS
SECTION 1.01. Chapter 2054, Government Code, is amended by adding Subchapter L to read as follows:
SUBCHAPTER L. STATEWIDE TECHNOLOGY CENTERS
Sec. 2054.375. DEFINITIONS. In this subchapter, "statewide technology center" means a statewide technology center established or operated under this subchapter. Sec. 2054.376. APPLICABILITY. This subchapter applies to all information resources technologies that are: (1) obtained by a state agency using state money; or (2) used by a state agency. 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. 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 2054.385 in relation to services provided under this section. Sec. 2054.382. 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. 2054.383. 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. 2054.384. NOTICE OF SELECTION. After completion of the cost and requirements analysis for each state agency under Section 2054.383, 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. 2054.385. INTERAGENCY CONTRACT; PRIOR APPROVAL OF EXPENDITURES. (a) A state agency that is selected under Section 2054.384 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 2054.384, 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. 2054.386. 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. 2054.387. 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 2054.385 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 2054.384. 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. 2054.388. 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. 2054.389. 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. 2054.390. 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 2054.385 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.
ARTICLE 2. CONFORMING AMENDMENT
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.
ARTICLE 3. REPEALER; TRANSITION; EFFECTIVE DATE
SECTION 3.01. Section 2055.061, Government Code, is repealed. SECTION 3.02. (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 timeline for the transfer of ownership of resources to the department in accordance with Subchapter L. (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 2054.389, 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; and (6) each member of the Legislative Budget Board. SECTION 3.03. This Act takes effect September 1, 2005.