79R7106 MXM-D
By: Swinford H.B. No. 2698
A BILL TO BE ENTITLED
AN ACT
relating to the use of state data centers by state agencies and
institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. LEGISLATIVE FINDINGS; ESTABLISHMENT OF
INITIATIVE. Through the creation of the state data center system,
the state has been afforded the opportunity to benefit financially
from information technology consolidation and economies of scale.
Although the legislature has previously encouraged state agencies,
including institutions of higher education, to fully utilize the
state data center system, these entities continue to operate a
significant number of data center facilities independent of the
state data center system. As a result, the state continues to pay
for unnecessary labor, facility, and hardware and software costs
and continues to fall further behind in its efforts to create a
truly consolidated information technology environment. The
legislature recognizes that the previously defined data center
waiver process, which allowed state entities to inaccurately report
operational costs, has significantly hampered the ability of the
state to achieve information technology cost savings as well as
limited the state's ability to enhance information technology
system performance and mitigate risks. Based on the continued
belief that data center services are typically provided more
efficiently and cost-effectively when managed in a consolidated
environment and recognizing that there continues to remain
significant opportunity for further information technology
consolidation, the Texas 21st Century Strategic Information
Technology Consolidation Initiative is established to mandate and
ensure that state agencies and institutions of higher education
migrate their data center operations to the state data center
system on a timeline designed to achieve savings in the most rapid
and efficient manner during each biennium.
SECTION 2. Section 2055.061, Government Code, is amended to
read as follows:
Sec. 2055.061. STATE DATA CENTER SYSTEM. (a) In this
section, "state data center system" [:
[(1) "Center"] means the State Data Center on the
campus of Angelo State University and the Austin Disaster Recovery
and Operations Center.
[(2) "Best value" has the meaning assigned under
Section 2157.003.]
(b) The department shall operate, or through cooperative
agreement, manage operations of the state data center system [State
Data Center on the campus of Angelo State University]. [It is the
intent of the legislature that all state agencies and institutions
of higher education utilize the center for data center operations,
testing disaster recovery plans, and for disaster recovery
services. None of the funds appropriated by the legislature may be
expended for entering into or renewing contracts or issuing
purchase orders for data center operations, disaster recovery plan
testing services, or disaster recovery services from other state
agencies or other providers of these services without first
obtaining a waiver from the Legislative Budget Board certifying
that the requested service requirements cannot be provided at
reasonable costs through the center. Waiver requests will be
evaluated by the Legislative Budget Board, based on best value to
the state, rather than best value to the state agency or institution
of higher education requesting the waiver. Prior to requesting a
waiver from the Legislative Budget Board, agencies and institutions
of higher education must first provide the operational vendor of
the center with a comprehensive statement of work sufficient for
the operational vendor to provide an accurate cost estimate for
cost comparison purposes. Prior to initiating the waiver process,
state agencies and institutions of higher education must also
coordinate with the department regarding appropriate time frames
for preparation of the statement of work, pricing, cost comparison,
and transition. Agencies and institutions of higher education
shall use the State Auditor's Report 95-139 in evaluating cost
comparison. The Legislative Budget Board may request assistance
from the State Auditor's Office in validating cost evaluations.
Waivers may be granted for specific periods of time and any
contracts for services obtained under waiver may not extend beyond
the expiration date of the waiver. Once a waiver has been granted,
state agencies and institutions of higher education must provide a
comparison of actual costs versus the projected costs used to
obtain the waiver on an annual basis to the Legislative Budget
Board.]
(c) State agencies and institutions of higher education
that use the state data center system [center] shall do so under
contract with the department. The department may collect fees for
these services in amounts that offset the direct and indirect costs
of providing the services. The department may request assistance
from the State Auditor regarding the billing system formula for
offsetting service costs[. In order for the state to realize
maximum cost savings and operational efficiencies, the department,
in consultation with the Legislative Budget Board, the State
Auditor's Office, and the center's operational vendor, will develop
a comprehensive information technology consolidation plan and
provide information relating to the use of the center as a location
for one of the state's consolidated data centers. The department
shall file a written report of the plan with the governor, the
lieutenant governor, and the speaker of the house of
representatives not later than May 31, 2004].
(d) The department shall develop, maintain, and enforce a
state data center system migration and consolidation plan for state
agencies and institutions of higher education. The plan must
clearly delineate, by state agency or institution of higher
education, the time lines for:
(1) migration to the system; and
(2) consolidation of shared operational systems
necessary to optimize state technology.
(e) The department shall prioritize the migration to the
state data center system based on the size of the current data
center operational environment at the state agency or institution
of higher education, with the largest 25 data center environments
ranking highest in priority. The department shall ensure the
migration of at least three data center environments to the system
each fiscal year. A state agency or institution of higher education
shall comply with the department's request to migrate under this
section.
(f) The department shall work with the Legislative Budget
Board and the state auditor's office to determine by state agency or
institution of higher education the specific savings related to
labor, facilities, hardware, software, or operational systems that
should accrue to the state as a result of the migration and
consolidation under this section.
(g) At least once every three months, the department shall
report on the status of the state data center system migration and
consolidation under this section, including progress on time lines
and cost savings achieved through the consolidation. 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. Not later than September 1, 2005, the Department
of Information Resources shall file the first report required by
Section 2055.061, Government Code, as amended by this Act.
SECTION 4. (a) In implementing the migration required by
Section 2055.061, Government Code, as amended by this Act, the
Department of Information Resources shall migrate data center
operations to the State Data Center located on the campus of Angelo
State University until the operational vendor determines the center
has reached capacity. Once the State Data Center has reached
capacity, the department shall advise the legislature of this fact
so that the legislature may determine whether to further expand the
data center located on the campus of Angelo State University or to
require the migration of data center operations to the Austin
Disaster Recovery and Operations Center until the operational
vendor determines that this center has also reached capacity.
(b) The Department of Information Resources shall advise
the legislature on whether to consider the addition of another data
center to the state data center system until the resources provided
by both the State Data Center on the campus of Angelo State
University and the Austin Disaster Recovery and Operations Center
are used to their fullest capacity.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.