BILL ANALYSIS

H.B. 2738

By: Elkins

Technology

Committee Report (Unamended)

BACKGROUND AND PURPOSE

A computer system or application program that is based on older and less efficient technology is commonly referred to as a legacy system. Interested parties report that the modernization of legacy applications through replacement or extending compatibility with new systems can be expensive and complex. However, failure to modernize aging legacy applications could compromise mission-critical business and may ultimately cost more over time as technical support expertise necessary to maintain such systems becomes scarce. H.B. 2738 seeks to assess the state's need for legacy system modernization by requiring the Department of Information Resources to conduct a study identifying legacy systems currently maintained by state agencies.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2738 amends the Government Code to require the Department of Information Resources (DIR) to conduct a study identifying legacy systems currently maintained by state agencies other than institutions of higher education. The bill defines a "legacy system" as a computer system or application program that is operated with obsolete or inefficient hardware or software technology. The bill requires the study to include an inventory of the systems maintained by state agencies; the annual cost and availability of resources to maintain the systems; the security risks related to use of the systems; a cost estimate for updating the systems, if feasible; and a plan for assessing and prioritizing statewide modernization projects to update or replace the systems.

H.B. 2738 authorizes DIR to contract with a private vendor to conduct the study. The bill requires each state agency, on request by DIR, to provide DIR with the information necessary for the study. The bill authorizes DIR to require a state agency to clarify or validate information provided by the agency or related to the study.

H.B. 2738 requires DIR, not later than October 1, 2014, to submit a report on its findings from the study and recommendations for modernization of legacy systems to the governor, the lieutenant governor, the speaker of the house of representatives, and the House Technology Committee. The bill's provisions expire August 31, 2015.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2013.