86R14336 AAF-D
 
  By: Capriglione H.B. No. 4214
 
 
 
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.