By: Parker, et al. (Senate Sponsor - Paxton) H.B. No. 2199
         (In the Senate - Received from the House May 5, 2021;
  May 10, 2021, read first time and referred to Committee on Business &
  Commerce; May 20, 2021, reported favorably by the following vote:  
  Yeas 9, Nays 0; May 20, 2021, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the establishment of the digital identity work group.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  DEFINITIONS. In this Act:
               (1)  "Digital identity" includes:
                     (A)  credentials issued by federal, state, and
  local governmental agencies to a person for identification,
  licensure, registration, and other purposes;
                     (B)  credentials conferred to a person to verify
  the person's skills and qualifications;
                     (C)  digital credentials issued for user
  authentication and access management; and
                     (D)  digitally-verifiable claims.
               (2)  "Work group" means the digital identity work group
  established under this Act.
         SECTION 2.  INFORMATION FOR LEGISLATIVE PURPOSES. (a)  Many
  credentials issued by governmental agencies, including passports,
  driver's licenses, business licenses, vehicle registrations, and
  certificates, are physical or portable document format documents.
  The use of physical credentials for validation can be slow,
  inconvenient, costly, and prone to intentional or unintentional
  human error. Physical credentials are susceptible to
  counterfeiting or fraud.
         (b)  Credentials are used for validating identity, including
  to:
               (1)  verify age for age restriction purposes;
               (2)  notarize signatures on documents;
               (3)  verify tax exemptions;
               (4)  prove registration or insurance coverage;
               (5)  prove a license or permit has been issued and is
  current; and
               (6)  prove inspections have been performed and passed.
         (c)  The use of credentials for validation presents an
  opportunity to:
               (1)  digitize and secure credentials using technology,
  including blockchain and cryptography; and
               (2)  lower costs and improve privacy, security, and
  convenience for governmental agencies, industry, and consumers.
         SECTION 3.  ESTABLISHMENT AND COMPOSITION OF WORK GROUP.
  (a) The digital identity work group is composed of the following 15
  members:
               (1)  one member of the house of representatives,
  appointed by the speaker of the house of representatives;
               (2)  one member of the senate, appointed by the
  lieutenant governor;
               (3)  one member representing institutions of higher
  education in this state, appointed by the governor;
               (4)  one member representing a municipality in this
  state who has overseen the implementation of digital identity
  initiatives, appointed by the presiding officer of the work group;
               (5)  one member representing the Department of Public
  Safety of the State of Texas, appointed by the public safety
  director;
               (6)  one member representing the Department of
  Information Resources, appointed by the executive director of the
  department;
               (7)  one member representing the office of the
  secretary of state, appointed by the secretary of state; and
               (8)  eight public members, four of whom are appointed
  by the speaker of the house of representatives and four of whom are
  appointed by the lieutenant governor, each of whom must:
                     (A)  have knowledge and experience in digital
  identity technology, including blockchain technology and
  cryptography; or
                     (B)  represent an industry that would benefit from
  the use of digital identity technology.
         (b)  The governor shall designate a member of the work group
  appointed under Subsection (a)(3) or (8) of this section to serve as
  presiding officer of the work group. The members of the work group
  appointed under Subsections (a)(1) and (2) of this section shall
  both serve as assistant presiding officers of the work group.
         (c)  A member of the work group may not receive compensation
  for serving on the work group or for performing official duties as a
  member of the work group. A member of the work group may receive
  reimbursement for legitimate expenses incurred by the member in the
  performance of official duties as a member of the work group.
         (d)  The work group shall meet at the call of the presiding
  officer.
         SECTION 4.  REPORT, POLICIES, AND PROCEDURES. (a) The work
  group shall develop recommendations for the use of digital identity
  in this state and identify optimal policies and state investments
  related to digital identity technology. In performing its duties
  under this section, the work group shall:
               (1)  assess existing digital identity practices in this
  state;
               (2)  identify areas of concern in current digital
  identity applications or the lack of applications;
               (3)  identify efficiencies and cost savings for
  governmental agencies and economic growth and development
  opportunities for this state presented by digitizing identity;
               (4)  review technology standards for digital identity;
               (5)  identify attribute validation services at federal
  governmental agencies; and
               (6)  review the federal Improving Digital Identity Act
  of 2020 (H.R. 8215).
         (b)  Based on the information gathered under Subsection (a)
  of this section, the work group shall make legislative
  recommendations as appropriate to:
               (1)  promote efficiencies in governmental agencies;
               (2)  protect the privacy of residents of this state;
               (3)  promote portability and interoperability of
  digital identity credentials; and
               (4)  generate economic opportunities by prescribing
  the use of digital identity.
         (c)  Not later than September 30, 2022, the work group shall
  submit the report containing its findings under Subsection (b) of
  this section to each standing committee of the senate and house of
  representatives with primary jurisdiction over economic
  development or technology.
         (d)  The work group may adopt procedures and policies as
  necessary to administer this section and implement the
  responsibilities of the work group.
         (e)  The Department of Information Resources shall provide
  to the work group the administrative support necessary for the work
  group to implement this section and its responsibilities under this
  Act.
         SECTION 5.  EXPIRATION OF ACT AND ABOLISHMENT OF WORK GROUP.
  This Act expires and the work group is abolished October 1, 2022.
         SECTION 6.  TRANSITION LANGUAGE. (a) As soon as practicable
  after the effective date of this Act, but not later than September
  15, 2021, the appropriate appointing authorities shall appoint the
  members of the work group as required by Section 3 of this Act.
         (b)  Not later than January 1, 2022, the work group shall
  hold its initial meeting.
         SECTION 7.  EFFECTIVE DATE. This Act takes effect September
  1, 2021.
 
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