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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring the Department of Information Resources to |
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conduct a study concerning the cybersecurity of small businesses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. DEFINITIONS. In this Act: |
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(1) "Department" means the Department of Information |
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Resources. |
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(2) "Tax incentive" means any exemption, deduction, |
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credit, exclusion, waiver, rebate, discount, deferral, or other |
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abatement or reduction of state tax liability of a business entity. |
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SECTION 2. STUDY CONCERNING CYBERSECURITY OF SMALL |
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BUSINESSES. (a) The department, in collaboration with the Texas |
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Workforce Commission, shall conduct a study to determine: |
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(1) how small businesses can improve their ability to |
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protect against cybersecurity risks and threats to the businesses' |
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supply chain and to mitigate and recover from cybersecurity |
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incidents; and |
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(2) the feasibility of establishing a grant program |
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for small businesses to receive funds to upgrade their |
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cybersecurity infrastructure and to participate in cybersecurity |
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awareness training. |
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(b) The department may, if necessary and as appropriate, |
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partner with a nonprofit entity or institution of higher education, |
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as defined by Section 61.003, Education Code, to conduct the study. |
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(c) The study may be limited to the geographic region or |
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regions served by a nonprofit entity or institution of higher |
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education with which the department partners under Subsection (b) |
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of this section. |
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(d) In conducting the study, the department may consider: |
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(1) the current best practices used by small |
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businesses for cybersecurity controls for their information |
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systems to protect against supply chain vulnerabilities, which may |
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include best practices related to: |
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(A) software integrity and authenticity; and |
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(B) vendor risk management and procurement |
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controls, including notification by vendors of any cybersecurity |
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incidents related to the vendor's products and services; |
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(2) barriers or challenges for small businesses in |
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purchasing or acquiring cybersecurity products or services; |
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(3) the estimated cost of any available tax incentives |
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or other state incentives to increase the ability of small |
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businesses to acquire products and services that promote |
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cybersecurity; |
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(4) the availability of resources small businesses |
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need to respond to and recover from a cybersecurity event; |
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(5) the impact of cybersecurity incidents that have |
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affected small businesses, including the resulting costs to small |
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businesses; |
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(6) to the extent possible, any emerging cybersecurity |
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risks and threats to small businesses resulting from the deployment |
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of new technologies; and |
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(7) any other issue the department and the Texas |
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Workforce Commission determine would have a future impact on |
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cybersecurity for small businesses with supply chain |
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vulnerabilities. |
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(e) In determining the feasibility of establishing a grant |
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program described by Subsection (a)(2) of this section, the study |
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must: |
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(1) identify the most significant and widespread |
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cybersecurity incidents impacting small businesses, vendors, and |
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others in the supply chain network of small businesses; |
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(2) consider the amount small businesses currently |
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spend on cybersecurity products and services and the availability |
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and market price of those services; and |
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(3) identify the type and frequency of training |
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necessary to protect small businesses from supply chain |
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cybersecurity risks and threats. |
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SECTION 3. REPORT. (a) Not later than December 31, 2024, |
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the department shall submit to the standing committees of the |
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senate and house of representatives with jurisdiction over small |
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businesses and cybersecurity a report that contains: |
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(1) the results of the study conducted under Section 2 |
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of this Act, including the feasibility of establishing a grant |
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program described by Subsection (a)(2) of that section; and |
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(2) recommendations for best practices and controls |
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for small businesses to implement in order to update and protect |
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their information systems against cybersecurity risks and threats. |
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(b) The department shall make the report available on the |
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department's Internet website. |
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SECTION 4. EXPIRATION OF ACT. This Act expires September 1, |
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2025. |
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SECTION 5. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2023. |