|  | 
      
        |  | 
      
        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | relating to matters concerning governmental entities, including | 
      
        |  | cybersecurity, governmental efficiencies, information resources, | 
      
        |  | and emergency planning. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Section 37.108(b), Education Code, is amended to | 
      
        |  | read as follows: | 
      
        |  | (b)  At least once every three years, each school district or | 
      
        |  | public junior college district shall conduct a safety and security | 
      
        |  | audit of the district's facilities, including an information | 
      
        |  | technology cybersecurity assessment. To the extent possible, a | 
      
        |  | district shall follow safety and security audit procedures | 
      
        |  | developed by the Texas School Safety Center or a comparable public | 
      
        |  | or private entity. | 
      
        |  | SECTION 2.  Subchapter C, Chapter 61, Education Code, is | 
      
        |  | amended by adding Section 61.09092 to read as follows: | 
      
        |  | Sec. 61.09092.  COORDINATION OF CYBERSECURITY COURSEWORK | 
      
        |  | DEVELOPMENT.  (a)  In this section, "lower-division institution of | 
      
        |  | higher education" means a public junior college, public state | 
      
        |  | college, or public technical institute. | 
      
        |  | (b)  The board, in consultation with the Department of | 
      
        |  | Information Resources, shall coordinate with lower-division | 
      
        |  | institutions of higher education and entities that administer or | 
      
        |  | award postsecondary industry certifications or other workforce | 
      
        |  | credentials in cybersecurity to develop certificate programs or | 
      
        |  | other courses of instruction leading toward those certifications or | 
      
        |  | credentials that may be offered by lower-division institutions of | 
      
        |  | higher education. | 
      
        |  | (c)  The board may adopt rules as necessary for the | 
      
        |  | administration of this section. | 
      
        |  | SECTION 3.  Subchapter F, Chapter 401, Government Code, is | 
      
        |  | amended by adding Section 401.106 to read as follows: | 
      
        |  | Sec. 401.106.  CHIEF INNOVATION OFFICER.  (a) The governor | 
      
        |  | shall appoint a chief innovation officer. | 
      
        |  | (b)  The chief innovation officer shall: | 
      
        |  | (1)  develop procedures and processes to improve | 
      
        |  | internal state government efficiency and performance; | 
      
        |  | (2)  develop methods to improve the experience of | 
      
        |  | residents, businesses, and local governments in interacting with | 
      
        |  | state government; | 
      
        |  | (3)  in cooperation with the Department of Information | 
      
        |  | Resources, increase the use of technology by state agencies to | 
      
        |  | improve services provided by the agencies and to reduce state | 
      
        |  | expenses and inefficiencies; | 
      
        |  | (4)  provide state agency personnel with training in | 
      
        |  | skills that support innovation; | 
      
        |  | (5)  provide state agency managers with training to | 
      
        |  | support innovation and encourage creative thinking; and | 
      
        |  | (6)  develop and apply measures to document | 
      
        |  | improvements in state government innovation and in employee skills | 
      
        |  | that support innovation. | 
      
        |  | (c)  In performing the duties required under Subsection (b), | 
      
        |  | the chief innovation officer shall: | 
      
        |  | (1)  use strategic innovation; | 
      
        |  | (2)  promote open innovation; | 
      
        |  | (3)  introduce and use group tools and processes that | 
      
        |  | encourage creative thinking; and | 
      
        |  | (4)  conduct market research to determine the best | 
      
        |  | practices for increasing innovation and implement those best | 
      
        |  | practices. | 
      
        |  | SECTION 4.  Section 418.004(1), Government Code, is amended | 
      
        |  | to read as follows: | 
      
        |  | (1)  "Disaster" means the occurrence or imminent threat | 
      
        |  | of widespread or severe damage, injury, or loss of life or property | 
      
        |  | resulting from any natural or man-made cause, including fire, | 
      
        |  | flood, earthquake, wind, storm, wave action, oil spill or other | 
      
        |  | water contamination, volcanic activity, epidemic, air | 
      
        |  | contamination, blight, drought, infestation, explosion, riot, | 
      
        |  | hostile military or paramilitary action, extreme heat, cyber | 
      
        |  | attack, other public calamity requiring emergency action, or energy | 
      
        |  | emergency. | 
      
        |  | SECTION 5.  Subchapter B, Chapter 421, Government Code, is | 
      
        |  | amended by adding Section 421.027 to read as follows: | 
      
        |  | Sec. 421.027.  CYBER INCIDENT STUDY AND RESPONSE PLAN.  (a) | 
      
        |  | In this section: | 
      
        |  | (1)  "Cyber incident" means an event occurring on or | 
      
        |  | conducted through a computer network that actually or imminently | 
      
        |  | jeopardizes the integrity, confidentiality, or availability of | 
      
        |  | computers, information or communications systems or networks, | 
      
        |  | physical or virtual infrastructure controlled by computers or | 
      
        |  | information systems, or information on the computers or systems. | 
      
        |  | The term includes a vulnerability in implementation or in an | 
      
        |  | information system, system security procedure, or internal control | 
      
        |  | that could be exploited by a threat source. | 
      
        |  | (2)  "Significant cyber incident" means a cyber | 
      
        |  | incident, or a group of related cyber incidents, likely to result in | 
      
        |  | demonstrable harm to state security interests, foreign relations, | 
      
        |  | or the economy of this state or to the public confidence, civil | 
      
        |  | liberties, or public health and safety of the residents of this | 
      
        |  | state. | 
      
        |  | (b)  The council, in cooperation with the Department of | 
      
        |  | Information Resources, shall: | 
      
        |  | (1)  conduct a study regarding cyber incidents and | 
      
        |  | significant cyber incidents affecting state agencies and critical | 
      
        |  | infrastructure that is owned, operated, or controlled by agencies; | 
      
        |  | and | 
      
        |  | (2)  develop a comprehensive state response plan to | 
      
        |  | provide a format for each state agency to develop an | 
      
        |  | agency-specific response plan and to implement the plan into the | 
      
        |  | agency's information security plan required under Section 2054.133 | 
      
        |  | to be implemented by the agency in the event of a cyber incident or | 
      
        |  | significant cyber incident affecting the agency or critical | 
      
        |  | infrastructure that is owned, operated, or controlled by the | 
      
        |  | agency. | 
      
        |  | (c)  Not later than September 1, 2020, the council shall | 
      
        |  | deliver the response plan and a report on the findings of the study | 
      
        |  | to: | 
      
        |  | (1)  the public safety director of the Department of | 
      
        |  | Public Safety; | 
      
        |  | (2)  the governor; | 
      
        |  | (3)  the lieutenant governor; | 
      
        |  | (4)  the speaker of the house of representatives; | 
      
        |  | (5)  the chair of the committee of the senate having | 
      
        |  | primary jurisdiction over homeland security matters; and | 
      
        |  | (6)  the chair of the committee of the house of | 
      
        |  | representatives having primary jurisdiction over homeland security | 
      
        |  | matters. | 
      
        |  | (d)  The response plan required by Subsection (b) and the | 
      
        |  | report required by Subsection (c) are not public information for | 
      
        |  | purposes of Chapter 552. | 
      
        |  | (e)  This section expires December 1, 2020. | 
      
        |  | SECTION 6.  Subchapter F, Chapter 437, Government Code, is | 
      
        |  | amended by adding Section 437.255 to read as follows: | 
      
        |  | Sec. 437.255.  ASSISTING TEXAS STATE GUARD WITH CYBER | 
      
        |  | OPERATIONS.  To serve the state and safeguard the public from | 
      
        |  | malicious cyber activity, the governor may command the Texas | 
      
        |  | National Guard to assist the Texas State Guard with defending the | 
      
        |  | state's cyber operations. | 
      
        |  | SECTION 7.  The heading to Section 656.047, Government Code, | 
      
        |  | is amended to read as follows: | 
      
        |  | Sec. 656.047.  PAYMENT OF PROGRAM AND CERTIFICATION | 
      
        |  | EXAMINATION EXPENSES. | 
      
        |  | SECTION 8.  Section 656.047, Government Code, is amended by | 
      
        |  | adding Subsection (a-1) to read as follows: | 
      
        |  | (a-1)  A state agency may spend public funds as appropriate | 
      
        |  | to reimburse a state agency employee or administrator who serves in | 
      
        |  | an information technology, cybersecurity, or other cyber-related | 
      
        |  | position for fees associated with industry-recognized | 
      
        |  | certification examinations. | 
      
        |  | SECTION 9.  Section 2054.059, Government Code, is amended to | 
      
        |  | read as follows: | 
      
        |  | Sec. 2054.059.  CYBERSECURITY.  From available funds, the | 
      
        |  | department shall: | 
      
        |  | (1)  establish and administer a clearinghouse for | 
      
        |  | information relating to all aspects of protecting the cybersecurity | 
      
        |  | of state agency information; | 
      
        |  | (2)  develop strategies and a framework for: | 
      
        |  | (A)  the securing of cyberinfrastructure by state | 
      
        |  | agencies, including critical infrastructure; and | 
      
        |  | (B)  cybersecurity risk assessment and mitigation | 
      
        |  | planning; | 
      
        |  | (3)  develop and provide training to state agencies, | 
      
        |  | including training for new employees of state agencies, on | 
      
        |  | cybersecurity measures and awareness; | 
      
        |  | (4)  provide assistance to state agencies on request | 
      
        |  | regarding the strategies and framework developed under Subdivision | 
      
        |  | (2); and | 
      
        |  | (5)  promote public awareness of cybersecurity issues. | 
      
        |  | SECTION 10.  Subchapter C, Chapter 2054, Government Code, is | 
      
        |  | amended by adding Section 2054.069 to read as follows: | 
      
        |  | Sec. 2054.069.  SECURITY STANDARDS FOR INTERNET | 
      
        |  | CONNECTIVITY OF CERTAIN OBJECTS.  (a)  The department, in | 
      
        |  | consultation with representatives of the information technology | 
      
        |  | industry and voluntary standards organizations, shall develop a | 
      
        |  | comprehensive set of risk-based security standards for the Internet | 
      
        |  | connectivity of computing devices embedded in objects used or | 
      
        |  | purchased by state agencies. | 
      
        |  | (b)  In developing the standards under Subsection (a), the | 
      
        |  | department shall identify existing security standards and best | 
      
        |  | practices and any known security gaps for a range of deployments, | 
      
        |  | including critical systems and consumer usage. | 
      
        |  | SECTION 11.  Subchapter F, Chapter 2054, Government Code, is | 
      
        |  | amended by adding Sections 2054.137, 2054.138, and 2054.139 to read | 
      
        |  | as follows: | 
      
        |  | Sec. 2054.137.  INFORMATION SECURITY CONTINUOUS MONITORING | 
      
        |  | PROGRAM.  (a)  In this section: | 
      
        |  | (1)  "Common control" means a security control that is | 
      
        |  | inherited by one or more information resources technologies. | 
      
        |  | (2)  "Program" means the information security | 
      
        |  | continuous monitoring program described by this section. | 
      
        |  | (b)  Each state agency shall: | 
      
        |  | (1)  develop and maintain an information security | 
      
        |  | continuous monitoring program that: | 
      
        |  | (A)  allows the agency to maintain ongoing | 
      
        |  | awareness of the security and vulnerabilities of and threats to the | 
      
        |  | agency's information resources; | 
      
        |  | (B)  provides a clear understanding of | 
      
        |  | organizational risk and helps the agency set priorities and manage | 
      
        |  | the risk consistently; | 
      
        |  | (C)  addresses how the agency conducts ongoing | 
      
        |  | authorizations of information resources technologies and the | 
      
        |  | environments in which those technologies operate, including the | 
      
        |  | agency's use of common controls; | 
      
        |  | (D)  aligns with the continuous monitoring | 
      
        |  | guidance, cybersecurity framework, and risk management framework | 
      
        |  | published in Special Publications 800-137 and 800-53 by the United | 
      
        |  | States Department of Commerce National Institute of Standards and | 
      
        |  | Technology; | 
      
        |  | (E)  addresses critical security controls, | 
      
        |  | including hardware asset management, software asset management, | 
      
        |  | configuration management, and vulnerability management; and | 
      
        |  | (F)  requires the integration of cybersecurity | 
      
        |  | products; | 
      
        |  | (2)  establish a strategy and plan to implement a | 
      
        |  | program for the agency; | 
      
        |  | (3)  to the extent practicable, establish information | 
      
        |  | security continuous monitoring as an agency-wide solution and | 
      
        |  | deploy enterprise information security continuous monitoring | 
      
        |  | products and services; | 
      
        |  | (4)  submit specified security-related information to | 
      
        |  | the dashboard established under Subsection (c)(3); | 
      
        |  | (5)  evaluate and upgrade information resources | 
      
        |  | technologies and deploy new products, including agency and | 
      
        |  | component information security continuous monitoring dashboards, | 
      
        |  | as necessary to support information security continuous monitoring | 
      
        |  | and the need to submit security-related information requested by | 
      
        |  | the department; | 
      
        |  | (6)  require that external service providers hosting | 
      
        |  | state information meet state information security requirements for | 
      
        |  | information security continuous monitoring; and | 
      
        |  | (7)  ensure the agency has adequate staff with the | 
      
        |  | necessary training to meet the objectives of the program. | 
      
        |  | (c)  The department shall: | 
      
        |  | (1)  oversee the implementation of this section by each | 
      
        |  | state agency; | 
      
        |  | (2)  monitor and assist each state agency in | 
      
        |  | implementation of a program and related strategies; and | 
      
        |  | (3)  establish a statewide dashboard for information | 
      
        |  | security continuous monitoring that provides: | 
      
        |  | (A)  a government-wide view of information | 
      
        |  | security continuous monitoring; and | 
      
        |  | (B)  technical specifications and guidance for | 
      
        |  | state agencies on the requirements for submitting information for | 
      
        |  | purposes of the dashboard. | 
      
        |  | Sec. 2054.138.  CYBERSECURITY THREAT SIMULATION EXERCISES. | 
      
        |  | (a)  In this section, "executive staff" means the management or | 
      
        |  | senior level staff members of a state agency who directly report to | 
      
        |  | the executive head of a state agency. | 
      
        |  | (b)  The executive head of a state agency and members of the | 
      
        |  | executive staff may participate in cybersecurity threat simulation | 
      
        |  | exercises with the agency's information resources technologies | 
      
        |  | employees to test the cybersecurity capabilities of the agency. | 
      
        |  | Sec. 2054.139.  CYBERSECURITY TRAINING FOR NEW EMPLOYEES. | 
      
        |  | Not later than the fifth business day after the date on which a new | 
      
        |  | employee begins employment with a state agency, the employee shall | 
      
        |  | complete the cybersecurity training developed by the department | 
      
        |  | under Section 2054.059. | 
      
        |  | SECTION 12.  Section 2054.512(d), Government Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (d)  The cybersecurity council shall: | 
      
        |  | (1)  consider the costs and benefits of establishing a | 
      
        |  | computer emergency readiness team to address cyber attacks | 
      
        |  | occurring in this state during routine and emergency situations; | 
      
        |  | (2)  establish criteria and priorities for addressing | 
      
        |  | cybersecurity threats to critical state installations; | 
      
        |  | (3)  consolidate and synthesize best practices to | 
      
        |  | assist state agencies in understanding and implementing | 
      
        |  | cybersecurity measures that are most beneficial to this state; | 
      
        |  | [ and] | 
      
        |  | (4)  assess the knowledge, skills, and capabilities of | 
      
        |  | the existing information technology and cybersecurity workforce to | 
      
        |  | mitigate and respond to cyber threats and develop recommendations | 
      
        |  | for addressing immediate workforce deficiencies and ensuring a | 
      
        |  | long-term pool of qualified applicants; and | 
      
        |  | (5)  ensure all middle and high schools have knowledge | 
      
        |  | of and access to: | 
      
        |  | (A)  free cybersecurity courses and curriculum | 
      
        |  | approved by the Texas Education Agency; | 
      
        |  | (B)  state and regional information sharing and | 
      
        |  | analysis centers; and | 
      
        |  | (C)  contracting benefits, including as provided | 
      
        |  | by Section 2054.0565. | 
      
        |  | SECTION 13.  Subchapter N-1, Chapter 2054, Government Code, | 
      
        |  | is amended by adding Sections 2054.5155, 2054.519, 2054.5191, and | 
      
        |  | 2054.5192 to read as follows: | 
      
        |  | Sec. 2054.5155.  INDEPENDENT RISK ASSESSMENT.  (a)  At least | 
      
        |  | once every five years, in accordance with department rules, each | 
      
        |  | state agency shall: | 
      
        |  | (1)  contract with an independent third party selected | 
      
        |  | from a list provided by the department to conduct an independent | 
      
        |  | risk assessment of the agency's exposure to security risks in the | 
      
        |  | agency's information resources systems and to conduct tests to | 
      
        |  | practice securing systems and notifying all affected parties in the | 
      
        |  | event of a data breach; and | 
      
        |  | (2)  submit the results of the independent risk | 
      
        |  | assessment to the department. | 
      
        |  | (b)  The department annually shall compile the results of the | 
      
        |  | independent risk assessments conducted in the preceding year and | 
      
        |  | prepare: | 
      
        |  | (1)  a public report on the general security issues | 
      
        |  | covered by the assessments that does not contain any information | 
      
        |  | the release of which may compromise any state agency's information | 
      
        |  | resources system; and | 
      
        |  | (2)  a confidential report on specific risks and | 
      
        |  | vulnerabilities that is exempt from disclosure under Chapter 552. | 
      
        |  | (c)  The department annually shall submit to the legislature | 
      
        |  | a comprehensive report on the results of the independent risk | 
      
        |  | assessments conducted under Subsection (a) during the preceding | 
      
        |  | year that includes the report prepared under Subsection (b)(1) and | 
      
        |  | that identifies systematic or pervasive security risk | 
      
        |  | vulnerabilities across state agencies and recommendations for | 
      
        |  | addressing the vulnerabilities but does not contain any information | 
      
        |  | the release of which may compromise any state agency's information | 
      
        |  | resources system. | 
      
        |  | Sec. 2054.519.  VENDOR RESPONSIBILITY FOR CYBERSECURITY.  A | 
      
        |  | vendor that contracts with this state to provide information | 
      
        |  | resources technology for a state agency at a cost to the agency of | 
      
        |  | $1 million or more is responsible for addressing known | 
      
        |  | cybersecurity risks associated with the technology and is | 
      
        |  | responsible for any cost associated with addressing the identified | 
      
        |  | cybersecurity risks.  For a major information resources project, | 
      
        |  | the vendor shall provide to state agency contracting personnel: | 
      
        |  | (1)  written acknowledgment of any known cybersecurity | 
      
        |  | risks associated with the technology identified in the test | 
      
        |  | conducted under Section 2054.516 or 2054.517; | 
      
        |  | (2)  proof that any individual servicing the contract | 
      
        |  | holds the appropriate industry-recognized certifications as | 
      
        |  | identified by the National Initiative for Cybersecurity Education; | 
      
        |  | (3)  a strategy for mitigating any technology or | 
      
        |  | personnel-related cybersecurity risk identified in the test | 
      
        |  | conducted under Section 2054.516 or 2054.517; and | 
      
        |  | (4)  an initial summary of any costs associated with | 
      
        |  | addressing or remediating the identified technology or | 
      
        |  | personnel-related cybersecurity risks as identified in | 
      
        |  | collaboration with this state following a risk assessment. | 
      
        |  | Sec. 2054.5191.  CYBERSTAR PROGRAM; CERTIFICATE OF | 
      
        |  | APPROVAL.  (a)  The state cybersecurity coordinator, in | 
      
        |  | collaboration with the cybersecurity council and public and private | 
      
        |  | entities in this state, shall develop best practices for | 
      
        |  | cybersecurity that include: | 
      
        |  | (1)  measureable responsibilities, capacities, and | 
      
        |  | policies for public and private entities to adopt to prepare for and | 
      
        |  | respond to cyber incidents that compromise the confidentiality, | 
      
        |  | integrity, and availability of the entities' information systems; | 
      
        |  | (2)  minimum training requirements and information for | 
      
        |  | employees or other individuals who are most responsible for | 
      
        |  | maintaining security of the entities' information systems; | 
      
        |  | (3)  compliance with: | 
      
        |  | (A)  for a municipality or county, the multihazard | 
      
        |  | emergency operations plan and the safety and security audit | 
      
        |  | required under Section 364.0101, Local Government Code; and | 
      
        |  | (B)  the National Institute of Standards and | 
      
        |  | Technology standards for cybersecurity; | 
      
        |  | (4)  public service announcements to encourage | 
      
        |  | cybersecurity awareness; and | 
      
        |  | (5)  coordination with local and state governmental | 
      
        |  | entities. | 
      
        |  | (b)  The state cybersecurity coordinator shall establish a | 
      
        |  | cyberstar certificate program to recognize public and private | 
      
        |  | entities that implement the best practices for cybersecurity | 
      
        |  | developed in accordance with Subsection (a).  The program must | 
      
        |  | allow a public or private entity to submit to the department a form | 
      
        |  | certifying that the entity has complied with the best practices and | 
      
        |  | the department to issue a certificate of approval to the entity. | 
      
        |  | The entity may include the certificate of approval in | 
      
        |  | advertisements and other public communications. | 
      
        |  | (c)  The state cybersecurity coordinator shall conduct an | 
      
        |  | annual public event to promote best practices for cybersecurity. | 
      
        |  | Sec. 2054.5192.  ENCRYPTED SECURE LAYER SERVICES REQUIRED. | 
      
        |  | Each state agency that maintains a publicly accessible Internet | 
      
        |  | website that requires the submission of sensitive personally | 
      
        |  | identifiable information shall use an encrypted secure | 
      
        |  | communication protocol, including a secure hypertext transfer | 
      
        |  | protocol. | 
      
        |  | SECTION 14.  Chapter 2054, Government Code, is amended by | 
      
        |  | adding Subchapter R to read as follows: | 
      
        |  | SUBCHAPTER R. INFORMATION RESOURCES OF GOVERNMENTAL ENTITIES | 
      
        |  | Sec. 2054.601.  USE OF NEXT GENERATION TECHNOLOGY.  Each | 
      
        |  | state agency and local government shall, in the administration of | 
      
        |  | the agency or local government, consider using next generation | 
      
        |  | technologies, including cryptocurrency, blockchain technology, and | 
      
        |  | artificial intelligence. | 
      
        |  | Sec. 2054.602.  LIABILITY EXEMPTION.  A person who discloses | 
      
        |  | to a state agency or other governmental entity information | 
      
        |  | regarding a potential security issue with respect to the agency's | 
      
        |  | or entity's information resources technologies is not liable for | 
      
        |  | any civil damages resulting from disclosing the information unless | 
      
        |  | the person stole, retained, or sold any data obtained as a result of | 
      
        |  | the security issue. | 
      
        |  | Sec. 2054.603.  MATCHING GRANTS FOR LOCAL CYBERSECURITY | 
      
        |  | PROJECTS.  (a)  In this section, "local governmental entity" means a | 
      
        |  | political subdivision of the state, including a: | 
      
        |  | (1)  county; | 
      
        |  | (2)  municipality; | 
      
        |  | (3)  public school district;  or | 
      
        |  | (4)  special-purpose district or authority. | 
      
        |  | (b)  Using available funds, the governor shall establish and | 
      
        |  | administer a cybersecurity matching grant program to award grants | 
      
        |  | to local governmental entities to defray the costs of cybersecurity | 
      
        |  | projects. | 
      
        |  | (c)  A local governmental entity that applies to the office | 
      
        |  | of the governor for a matching grant under this section must | 
      
        |  | identify the source and amount of the local governmental entity's | 
      
        |  | matching funds. If the office approves a grant application, the | 
      
        |  | office shall award to the local governmental entity a grant amount | 
      
        |  | equal to 150 percent of the amount committed by the entity. | 
      
        |  | (d)  The office may set a deadline for grant applications for | 
      
        |  | each state fiscal year. | 
      
        |  | (e)  The governor shall adopt rules to implement the grant | 
      
        |  | program created under this section. | 
      
        |  | Sec. 2054.604.  CYBERSECURITY THREAT ASSESSMENT.  The | 
      
        |  | department shall develop a cybersecurity threat assessment for | 
      
        |  | local governments that provides best practices for preventing | 
      
        |  | cybersecurity attacks. | 
      
        |  | Sec. 2054.605.  REPOSITORY FOR CYBERSECURITY EDUCATION AND | 
      
        |  | TRAINING.  The department, in conjunction with institutions of | 
      
        |  | higher education as defined by Section 61.003, Education Code, | 
      
        |  | shall maintain and promote a centralized repository of information | 
      
        |  | on cybersecurity education and training that is available to any | 
      
        |  | governmental entity in this state. | 
      
        |  | SECTION 15.  Subchapter B, Chapter 2155, Government Code, is | 
      
        |  | amended by adding Section 2155.092 to read as follows: | 
      
        |  | Sec. 2155.092.  VENDOR CERTIFICATION FOR CERTAIN GOODS.  (a) | 
      
        |  | This section does not apply to a good provided as part of a major | 
      
        |  | information resources project as defined by Section 2054.003. | 
      
        |  | (b)  A vendor offering to sell to the state a good embedded | 
      
        |  | with a computing device capable of Internet connectivity must | 
      
        |  | include with each bid, offer, proposal, or other expression of | 
      
        |  | interest a written certification providing that the good does not | 
      
        |  | contain, at the time of submitting the bid, offer, proposal, or | 
      
        |  | expression of interest, a hardware, software, or firmware component | 
      
        |  | with any known security vulnerability or defect. | 
      
        |  | SECTION 16.  The heading to Section 2157.007, Government | 
      
        |  | Code, is amended to read as follows: | 
      
        |  | Sec. 2157.007.  [ CONSIDERATION OF] CLOUD COMPUTING SERVICE | 
      
        |  | [ PURCHASE]. | 
      
        |  | SECTION 17.  Section 2157.007, Government Code, is amended | 
      
        |  | by amending Subsection (b) and adding Subsection (f) to read as | 
      
        |  | follows: | 
      
        |  | (b)  A state agency shall ensure [ consider cloud computing  | 
      
        |  | service options, including any security benefits and cost savings  | 
      
        |  | associated with purchasing those service options from a cloud  | 
      
        |  | computing service provider and from a statewide technology center  | 
      
        |  | established by the department], when making purchases for an | 
      
        |  | automated information system or a major information resources | 
      
        |  | project under Section 2054.118, that the system or project is | 
      
        |  | capable of being deployed and run on cloud computing services. | 
      
        |  | (f)  The department shall periodically review guidelines on | 
      
        |  | state agency information that may be stored by a cloud computing or | 
      
        |  | other storage service and the cloud computing or other storage | 
      
        |  | services available to state agencies for that storage to ensure | 
      
        |  | that an agency purchasing a major information resources project | 
      
        |  | under Section 2054.118 selects the most affordable, secure, and | 
      
        |  | efficient cloud computing or other storage service available to the | 
      
        |  | agency.  The guidelines must include appropriate privacy and | 
      
        |  | security standards that, at a minimum, require a vendor who offers | 
      
        |  | cloud computing or other storage services or other software, | 
      
        |  | applications, online services, or information technology solutions | 
      
        |  | to any state agency to demonstrate that data provided by the state | 
      
        |  | to the vendor will be maintained in compliance with all applicable | 
      
        |  | state and federal laws and rules. | 
      
        |  | SECTION 18.  Section 205.010(b), Local Government Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (b)  A local government that owns, licenses, or maintains | 
      
        |  | computerized data that includes sensitive personal information | 
      
        |  | shall comply, in the event of a breach of system security, with the | 
      
        |  | notification requirements of: | 
      
        |  | (1)  Section 364.0053; | 
      
        |  | (2)  Section 364.0102; and | 
      
        |  | (3)  Section 521.053, Business & Commerce Code, to the | 
      
        |  | same extent as a person who conducts business in this state. | 
      
        |  | SECTION 19.  Subtitle C, Title 11, Local Government Code, is | 
      
        |  | amended by adding Chapter 364 to read as follows: | 
      
        |  | CHAPTER 364. LOCAL GOVERNMENT CYBERSECURITY AND EMERGENCY PLANNING | 
      
        |  | AND RESPONSE | 
      
        |  | SUBCHAPTER A. GENERAL PROVISIONS | 
      
        |  | Sec. 364.0001.  DEFINITIONS.  In this chapter: | 
      
        |  | (1)  "Breach of system security" has the meaning | 
      
        |  | assigned by Section 521.053, Business & Commerce Code. | 
      
        |  | (2)  "Cybersecurity coordinator" means the state | 
      
        |  | cybersecurity coordinator designated under Section 2054.511, | 
      
        |  | Government Code. | 
      
        |  | (3)  "Cybersecurity council" means the council | 
      
        |  | established by the cybersecurity coordinator under Section | 
      
        |  | 2054.512, Government Code. | 
      
        |  | (4)  "Sensitive personal information" has the meaning | 
      
        |  | assigned by Section 521.002, Business & Commerce Code. | 
      
        |  | SUBCHAPTER B. REGIONAL INFORMATION SHARING AND ANALYSIS CENTERS | 
      
        |  | Sec. 364.0051.  ESTABLISHMENT.  (a)  The cybersecurity | 
      
        |  | coordinator shall provide for the establishment and operation of | 
      
        |  | not more than 20 regional information sharing and analysis centers. | 
      
        |  | (b)  Regional information sharing and analysis centers shall | 
      
        |  | be located throughout the state so that the boundaries for each | 
      
        |  | center are coextensive with the regional education service centers | 
      
        |  | established under Chapter 8, Education Code. | 
      
        |  | Sec. 364.0052.  MEMBERSHIP.  Each municipality with a | 
      
        |  | population of more than 25,000 shall join the regional information | 
      
        |  | sharing and analysis center in which the municipality is | 
      
        |  | predominantly located.  Any other political subdivision may join | 
      
        |  | the regional information sharing and analysis center in which the | 
      
        |  | political subdivision is predominantly located. | 
      
        |  | Sec. 364.0053.  SECURITY BREACH NOTIFICATION.  (a)  Not | 
      
        |  | later than 48 hours after a political subdivision discovers a | 
      
        |  | breach or suspected breach of system security or an unauthorized | 
      
        |  | exposure of sensitive personal information, the political | 
      
        |  | subdivision shall notify the regional information sharing and | 
      
        |  | analysis center of the breach.  The notification must describe the | 
      
        |  | breach, suspected breach, or unauthorized exposure. | 
      
        |  | (b)  A regional information sharing and analysis center | 
      
        |  | shall report to the Department of Information Resources any breach | 
      
        |  | of system security reported by a political subdivision in which the | 
      
        |  | person responsible for the breach: | 
      
        |  | (1)  obtained or modified specific critical or | 
      
        |  | sensitive personal information; | 
      
        |  | (2)  established access to the political subdivision's | 
      
        |  | information systems or infrastructure; or | 
      
        |  | (3)  undermined, severely disrupted, or destroyed a | 
      
        |  | core service, program, or function of the political subdivision, or | 
      
        |  | placed the person in a position to do so in the future. | 
      
        |  | Sec. 364.0054.  RULEMAKING.  The cybersecurity coordinator | 
      
        |  | may adopt rules necessary to implement this subchapter. | 
      
        |  | SUBCHAPTER C. EMERGENCY PLANNING AND RESPONSE | 
      
        |  | Sec. 364.0101.  MULTIHAZARD EMERGENCY OPERATIONS PLAN; | 
      
        |  | SAFETY AND SECURITY AUDIT.  (a)  This section applies to a | 
      
        |  | municipality or county with a population of more than 100,000. | 
      
        |  | (b)  Each municipality and county shall adopt and implement a | 
      
        |  | multihazard emergency operations plan for use in the municipality's | 
      
        |  | and county's facilities. The plan must address mitigation, | 
      
        |  | preparedness, response, and recovery as determined by the | 
      
        |  | cybersecurity council and the governor's office of homeland | 
      
        |  | security. The plan must provide for: | 
      
        |  | (1)  municipal or county employee training in | 
      
        |  | responding to an emergency; | 
      
        |  | (2)  measures to ensure coordination with the | 
      
        |  | Department of State Health Services, Department of Information | 
      
        |  | Resources, local emergency management agencies, law enforcement | 
      
        |  | agencies, local health departments, and fire departments in the | 
      
        |  | event of an emergency; and | 
      
        |  | (3)  the implementation of a safety and security audit | 
      
        |  | as required by Subsection (c). | 
      
        |  | (c)  At least once every three years, each municipality and | 
      
        |  | county shall conduct a safety and security audit of the | 
      
        |  | municipality's or county's information technology infrastructure. | 
      
        |  | To the extent possible, a municipality or county shall follow | 
      
        |  | safety and security audit procedures developed by the cybersecurity | 
      
        |  | council or a comparable public or private entity. | 
      
        |  | (d)  A municipality or county shall report the results of the | 
      
        |  | safety and security audit conducted under Subsection (c): | 
      
        |  | (1)  to the municipality's or county's governing body; | 
      
        |  | and | 
      
        |  | (2)  in the manner required by the cybersecurity | 
      
        |  | council, to the cybersecurity council. | 
      
        |  | (e)  Except as provided by Subsection (f), any document or | 
      
        |  | information collected, developed, or produced during a safety and | 
      
        |  | security audit conducted under Subsection (c) is not subject to | 
      
        |  | disclosure under Chapter 552, Government Code. | 
      
        |  | (f)  A document relating to a municipality's or county's | 
      
        |  | multihazard emergency operations plan is subject to disclosure if | 
      
        |  | the document enables a person to: | 
      
        |  | (1)  verify that the municipality or county has | 
      
        |  | established a plan and determine the agencies involved in the | 
      
        |  | development of the plan and the agencies coordinating with the | 
      
        |  | municipality or county to respond to an emergency; | 
      
        |  | (2)  verify that the municipality's or county's plan | 
      
        |  | was reviewed within the last 12 months and determine the specific | 
      
        |  | review dates; | 
      
        |  | (3)  verify that the plan addresses the phases of | 
      
        |  | emergency management under Subsection (b); | 
      
        |  | (4)  verify that municipal or county employees have | 
      
        |  | been trained to respond to an emergency and determine the types of | 
      
        |  | training, the number of employees trained, and the person | 
      
        |  | conducting the training; | 
      
        |  | (5)  verify that the municipality or county has | 
      
        |  | completed a safety and security audit under Subsection (c) and | 
      
        |  | determine the date the audit was conducted, the person conducting | 
      
        |  | the audit, and the date the municipality or county presented the | 
      
        |  | results of the audit to the municipality's or county's governing | 
      
        |  | body; and | 
      
        |  | (6)  verify that the municipality or county has | 
      
        |  | addressed any recommendations by the municipality's or county's | 
      
        |  | governing body for improvement of the plan and determine the | 
      
        |  | municipality's or county's progress within the last 12 months. | 
      
        |  | Sec. 364.0102.  RANSOMWARE PAYMENT.  (a)  In this section, | 
      
        |  | "ransomware" has the meaning assigned by Section 33.023, Penal | 
      
        |  | Code. | 
      
        |  | (b)  Not later than 48 hours after the time a political | 
      
        |  | subdivision makes a ransomware payment, the political subdivision | 
      
        |  | shall notify the cybersecurity coordinator of the payment. | 
      
        |  | SECTION 20.  Section 2054.513, Government Code, is repealed. | 
      
        |  | SECTION 21.  The Department of Information Resources shall | 
      
        |  | conduct a study on the types of objects embedded with computing | 
      
        |  | devices that are connected to the Internet that are purchased | 
      
        |  | through the department.  The Department of Information Resources | 
      
        |  | shall submit a report on the study to the legislature not later than | 
      
        |  | December 31, 2020. | 
      
        |  | SECTION 22.  (a)  The lieutenant governor shall establish a | 
      
        |  | Senate Select Committee on Cybersecurity and the speaker of the | 
      
        |  | house of representatives shall establish a House Select Committee | 
      
        |  | on Cybersecurity to, jointly or separately, study: | 
      
        |  | (1)  cybersecurity in this state; | 
      
        |  | (2)  the information security plans of each state | 
      
        |  | agency; | 
      
        |  | (3)  the risks and vulnerabilities of state agency | 
      
        |  | cybersecurity; and | 
      
        |  | (4)  information technology procurement. | 
      
        |  | (b)  Not later than November 30, 2019: | 
      
        |  | (1)  the lieutenant governor shall appoint five | 
      
        |  | senators to the Senate Select Committee on Cybersecurity, one of | 
      
        |  | whom shall be designated as chair; and | 
      
        |  | (2)  the speaker of the house of representatives shall | 
      
        |  | appoint five state representatives to the House Select Committee on | 
      
        |  | Cybersecurity, one of whom shall be designated as chair. | 
      
        |  | (c)  The committees established under this section shall | 
      
        |  | convene separately at the call of the chair of the respective | 
      
        |  | committees, or jointly at the call of both chairs.  In joint | 
      
        |  | meetings, the chairs of each committee shall act as joint chairs. | 
      
        |  | (d)  Following consideration of the issues listed in | 
      
        |  | Subsection (a) of this section, the committees established under | 
      
        |  | this section shall jointly adopt recommendations on state | 
      
        |  | cybersecurity and report in writing to the legislature any findings | 
      
        |  | and adopted recommendations not later than January 12, 2021. | 
      
        |  | (e)  This section expires September 1, 2021. | 
      
        |  | SECTION 23.  As soon as practicable after the effective date | 
      
        |  | of this Act, the governor shall appoint a chief innovation officer | 
      
        |  | as required by Section 401.106, Government Code, as added by this | 
      
        |  | Act. | 
      
        |  | SECTION 24.  Section 2054.139, Government Code, as added by | 
      
        |  | this Act, requiring a new employee of a state agency to complete | 
      
        |  | cybersecurity training, applies only to an employee who begins | 
      
        |  | employment on or after the effective date of this Act. | 
      
        |  | SECTION 25.  Section 2155.092, Government Code, as added by | 
      
        |  | this Act, applies only in relation to a contract for which a state | 
      
        |  | agency first advertises or otherwise solicits bids, offers, | 
      
        |  | proposals, or other expressions of interest on or after the | 
      
        |  | effective date of this Act. | 
      
        |  | SECTION 26.  Section 2157.007, Government Code, as amended | 
      
        |  | by this Act, applies only with respect to a purchase made by a state | 
      
        |  | agency on or after the effective date of this Act.  A purchase made | 
      
        |  | before the effective date of this Act is governed by the law in | 
      
        |  | effect on the date the purchase was made, and the former law is | 
      
        |  | continued in effect for that purpose. | 
      
        |  | SECTION 27.  This Act takes effect September 1, 2019. |