H.B. No. 3112
relating to the security of computer networks in state government.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 10, Government Code, is
amended by adding Chapter 2059 to read as follows:
CHAPTER 2059. TEXAS COMPUTER NETWORK SECURITY SYSTEM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2059.001. DEFINITIONS. In this chapter:
(1) "Center" means the network security center
established under this chapter.
(2) "Department" means the Department of Information
(3) "Network security" means the protection of
computer systems and technology assets from unauthorized external
intervention or improper use. The term includes detecting,
identifying, and countering malicious network activity to prevent
the acquisition of information or disruption of information
(4) "State agency" has the meaning assigned by Section
[Sections 2059.002-2059.050 reserved for expansion]
SUBCHAPTER B. GENERAL POWERS AND DUTIES
Sec. 2059.051. DEPARTMENT RESPONSIBLE FOR PROVIDING
COMPUTER NETWORK SECURITY SERVICES. The department shall provide
network security services to:
(1) state agencies; and
(2) other entities by agreement as provided by Section
Sec. 2059.052. SERVICES PROVIDED TO INSTITUTIONS OF HIGHER
EDUCATION. The department may provide network security services to
an institution of higher education, and may include an institution
of higher education in a center, only if and to the extent approved
by the Information Technology Council for Higher Education.
Sec. 2059.053. RULES. The department may adopt rules
necessary to implement this chapter.
Sec. 2059.054. OWNERSHIP OR LEASE OF NECESSARY EQUIPMENT.
The department may purchase in accordance with Chapters 2155, 2156,
2157, and 2158 any facilities or equipment necessary to provide
network security services to state agencies.
Sec. 2059.055. RESTRICTED INFORMATION. (a) Confidential
network security information may be released only to officials
responsible for the network, law enforcement, the state auditor's
office, and agency or elected officials designated by the
(b) Network security information is confidential under this
section if the information is:
(1) related to passwords, personal identification
numbers, access codes, encryption, or other components of the
security system of a state agency;
(2) collected, assembled, or maintained by or for a
governmental entity to prevent, detect, or investigate criminal
(3) related to an assessment, made by or for a
governmental entity or maintained by a governmental entity, of the
vulnerability of a network to criminal activity.
Sec. 2059.056. RESPONSIBILITY FOR EXTERNAL AND INTERNAL
SECURITY THREATS. If the department provides network security
services for a state agency or other entity under this chapter, the
department is responsible for network security from external
threats for that agency or entity. Network security management for
that state agency or entity regarding internal threats remains the
responsibility of that state agency or entity.
Sec. 2059.057. BIENNIAL REPORT. (a) The department shall
biennially prepare a report on:
(1) the department's accomplishment of service
objectives and other performance measures under this chapter; and
(2) the status, including the financial performance,
of the consolidated network security system provided through the
(b) The department shall submit the report to:
(1) the governor;
(2) the lieutenant governor;
(3) the speaker of the house of representatives; and
(4) the state auditor's office.
Sec. 2059.058. AGREEMENT TO PROVIDE NETWORK SECURITY
SERVICES TO ENTITIES OTHER THAN STATE AGENCIES. (a) In this
section, a "special district" means:
(1) a school district;
(2) a hospital district;
(3) a water district; or
(4) a district or special water authority, as defined
by Section 49.001, Water Code.
(b) In addition to the department's duty to provide network
security services to state agencies under this chapter, the
department by agreement may provide network security to:
(1) each house of the legislature;
(2) an agency that is not a state agency, including a
(3) a political subdivision of this state, including a
county, municipality, or special district; and
(4) an independent organization, as defined by Section
39.151, Utilities Code.
Sec. 2059.059. TRANSITION TO THE CENTER. (a) The
department shall provide network security services for a state
agency if the department makes that state agency's network a part of
the consolidated state network through the center.
(b) Before the construction and operation of the center, the
department may provide network security services through
agreements with entities that provide those services using existing
network security centers or operations.
(c) If the state agency or entity pays its proportional
share of the network security services costs under this chapter,
the department shall provide network security services to that
state agency or other entity before the department makes the state
agency's network a part of the consolidated state network.
(d) This section expires September 1, 2011.
[Sections 2059.060-2059.100 reserved for expansion]
SUBCHAPTER C. NETWORK SECURITY CENTER
Sec. 2059.101. NETWORK SECURITY CENTER. The department
shall establish a network security center to provide network
security services to state agencies.
Sec. 2059.102. MANAGEMENT AND USE OF NETWORK SECURITY
SYSTEM. (a) The department shall manage the operation of network
security system services for all state agencies at the center.
(b) The department shall fulfill the network security
requirements of each state agency to the extent practicable.
However, the department shall protect criminal justice and homeland
security networks of this state to the fullest extent possible in
accordance with federal criminal justice and homeland security
(c) All state agencies shall use the network security
services provided through the center to the fullest extent
(d) A state agency may not purchase network security
services unless the department determines that the agency's
requirement for network security services cannot be met at a
comparable cost through the center. The department shall develop
an efficient process for this determination.
Sec. 2059.103. CENTER LOCATION AND PHYSICAL SECURITY. (a)
The department shall locate the center at a location that has an
existing secure and restricted facility, cyber-security
infrastructure, available trained workforce, and supportive
(b) The department shall control and monitor all entrances
and critical areas to prevent unauthorized entry. The department
shall limit access to authorized individuals.
(c) Local law enforcement or security agencies shall
monitor security alarms at the center according to service
(d) The department shall restrict operational information
to personnel at the center, except as provided by Chapter 321.
Sec. 2059.104. CENTER SERVICES AND SUPPORT. (a) The
department shall provide the following managed security services
through the center:
(1) real-time network security monitoring to detect
and respond to network security events that may jeopardize this
state and the residents of this state, including vulnerability
assessment services consisting of a comprehensive security posture
assessment, external and internal threat analysis, and penetration
(2) continuous, 24-hour alerts and guidance for
defeating network security threats, including firewall
preconfiguration, installation, management and monitoring,
intelligence gathering, protocol analysis, and user
(3) immediate incident response to counter network
security activity that exposes this state and the residents of this
state to risk, including complete intrusion detection systems
installation, management, and monitoring and a network operations
(4) development, coordination, and execution of
statewide cyber-security operations to isolate, contain, and
mitigate the impact of network security incidents at state
(5) operation of a central authority for all statewide
information assurance programs; and
(6) the provision of educational services regarding
(b) The department may provide:
(1) implementation of best-of-breed information
security architecture engineering services, including public key
infrastructure development, design, engineering, custom software
development, and secure web design; or
(2) certification and accreditation to ensure
compliance with the applicable regulatory requirements for
cyber-security and information technology risk management,
including the use of proprietary tools to automate the assessment
and enforcement of compliance.
Sec. 2059.105. NETWORK SECURITY GUIDELINES AND STANDARD
OPERATING PROCEDURES. (a) The department shall adopt and provide
to all state agencies appropriate network security guidelines and
standard operating procedures to ensure efficient operation of the
center with a maximum return on investment for the state.
(b) The department shall revise the standard operating
procedures as necessary to confirm network security.
(c) Each state agency shall comply with the network security
policies, guidelines, and standard operating procedures.
Sec. 2059.106. PRIVATE VENDOR. The department may contract
with a private vendor to build and operate the center and act as an
authorized agent to acquire, install, integrate, maintain,
configure, and monitor the network security services and security
[Sections 2059.107-2059.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 2059.151. PAYMENT FOR SERVICES. The department shall
develop a system of billings and charges for services provided in
operating and administering the network security system that
allocates the total state cost to each state agency or other entity
served by the system based on proportionate usage.
Sec. 2059.152. REVOLVING FUND ACCOUNT. (a) The
comptroller shall establish in the state treasury a revolving fund
account for the administration of this chapter. The account must be
used as a depository for money received from state agencies and
other entities served under this chapter. Receipts attributable to
the centralized network security system must be deposited into the
account and separately identified within the account.
(b) The legislature may appropriate money for operating the
system directly to the department, in which case the revolving fund
account must be used to receive money due from local governmental
entities and other agencies to the extent that their money is not
subject to legislative appropriation.
(c) The department shall maintain in the revolving fund
account sufficient amounts to pay the liabilities of the center and
related network security services.
Sec. 2059.153. GRANTS. The department may apply for and use
for purposes of this chapter the proceeds from grants offered by any
federal agency or other source.
SECTION 2. (a) In this section, "department" means the
Department of Information Resources.
(b) The department shall study the interoperability of the
network security features for user-specific access as provided by
this Act. As part of the study, the department shall determine the
potential for interoperability of user access technology and
identify resulting cost savings and security benefits to Texas.
The department shall convene the necessary project staff from
affected state agencies, as well as appropriate independent
technology experts to determine feasibility, cost savings,
scalability, and other relevant factors regarding integration of
user-specific access features to state computer network systems
that will enhance information security.
(c) The department shall report on the results of the study
and include recommendations in the report regarding integration and
user-specific access features that will enhance computer network
and information security.
(d) Not later than December 31, 2006, the department shall
file the report with:
(1) the lieutenant governor;
(2) the speaker of the house of representatives; and
(3) the chairs of the house and senate committees with
primary oversight over the department.
SECTION 3. This Act takes effect September 1, 2005.
President of the Senate Speaker of the House
I certify that H.B. No. 3112 was passed by the House on May
13, 2005, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 3112 on May 27, 2005, by a non-record
Chief Clerk of the House
I certify that H.B. No. 3112 was passed by the Senate, with
amendments, on May 25, 2005, by the following vote: Yeas 31, Nays
Secretary of the Senate