HB 1500 House Committee Report

Relating to the continuation and functions of the Department of Information Resources, including the composition of the governing body of the department.

A BILL TO BE ENTITLED

AN ACT

relating to the continuation and functions of the Department of

Information Resources, including the composition of the governing

body of the department.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 656, Government Code, is

amended by adding Sections 656.0505 and 656.0506 to read as

follows:

Sec. 656.0505. VOLUNTARY CERTIFICATION COURSE ON

PROCUREMENT OF INFORMATION RESOURCES TECHNOLOGIES. (a) In this

section:

(1) “Department” means the Department of Information

Resources.

(2) “Information resources technologies” has the

meaning assigned by Section 2054.003.

(b) In coordination with the comptroller, the department

shall develop and implement a certification course on the

procurement of information resources technologies and make the

course available to a person who:

(1) holds a purchasing certification issued under

Section 656.051;

(2) holds a contract management certification issued

under Section 656.052; or

(3) holds both certifications described by

Subdivisions (1) and (2).

quarterly and must provide the course in person.

(d) The department shall certify a state agency employee who

successfully completes the course.

(e) Successful completion of the course may be credited

toward any continuing education requirements for maintaining a

certification under Section 656.051 or 656.052, or both.

Sec. 656.0506. TRAINING ON PURCHASES OF INFORMATION

RESOURCES TECHNOLOGIES FOR CERTAIN STATE AGENCY OFFICERS AND

EMPLOYEES. (a) In this section:

(1) “Department” means the Department of Information

Resources.

(2) “Information resources technologies” has the

meaning assigned by Section 2054.003.

(b) The department shall develop and provide annual

training for persons who serve in upper management positions at

state agencies, including elected or appointed state officers and

executive heads of state agencies on best practices and

methodologies for purchasing information resources technologies.

under Subsection (b) information the department covers in the

certification programs established by Sections 656.051 and 656.052

that is related to the purchase of information resources

technologies. The department may include additional topics in the

training.

(d) The department may not require a person described by

Subsection (b) to participate in the training.

SECTION 2. Section 2054.003(13), Government Code, is

amended to read as follows:

(13) “State agency” means, except as otherwise

provided by this chapter, a department, commission, board, office,

council, authority, or other agency in the executive or judicial

branch of state government that is created by the constitution or a

statute of this state, including a university system or institution

of higher education as defined by Section 61.003, Education Code.

SECTION 3. Section 2054.005, Government Code, is amended to

read as follows:

Sec. 2054.005. SUNSET PROVISION. [(a)] The Department of

Information Resources is subject to Chapter 325 (Texas Sunset Act).

Unless continued in existence as provided by that chapter, the

department is abolished [and this chapter expires] September 1,

2037 [2025].

SECTION 4. Section 2054.021, Government Code, is amended by

amending Subsections (a), (c), (f), (g), and (h) and adding

Subsections (a-1), (c-1), (c-2), and (i) to read as follows:

(a) For purposes of this section, “state agency” has the

meaning assigned by Section 2054.003 but does not include a

department, commission, board, office, council, authority, or

other agency in the judicial branch of state government.

(a-1) The department is governed by a board composed of 11

members as follows:

(1) seven voting members appointed by the governor

with the advice and consent of the senate; and

(2) four nonvoting members as provided by Subsection

(c). [One member must be employed by an institution of higher

education as defined by Section 61.003, Education Code.]

the board as follows:

(1) one member who is an employee of an institution of

higher education, as defined by Section 61.003, Education Code;

(2) two members who are employees of state agencies

that are on the list provided under Subsection (c-1); and

(3) one member who is an employee of a state agency

with fewer than 500 full-time employees.

(c-1) Not later than December 1 of each even-numbered year,

the department shall provide the governor a list of the 10 state

agencies that spent the most money on products and services of the

department during the previous state fiscal year.

(c-2) A nonvoting member of the board serves for a two-year

term that expires February 1 of each odd-numbered year. [Two groups

each composed of three ex officio members serve on the board on a

rotating basis. The ex officio members serve as nonvoting members

of the board. Only one group serves at a time. The first group is

composed of the commissioner of insurance, the executive

commissioner of the Health and Human Services Commission, and the

executive director of the Texas Department of Transportation.

Members of the first group serve for two-year terms that begin

February 1 of every other odd-numbered year and that expire on

February 1 of the next odd-numbered year. The second group is

composed of the commissioner of education, the executive director

of the Texas Department of Criminal Justice, and the executive

director of the Parks and Wildlife Department. Members of the

second group serve for two-year terms that begin February 1 of the

odd-numbered years in which the terms of members of the first group

expire and that expire on February 1 of the next odd-numbered year.]

(f) A [To be eligible to take office or serve as a voting or

nonvoting member of the board, a] person who is appointed to and

qualifies for office as a member of the board may not vote,

deliberate, or be counted as a member in attendance at a meeting of

the board until the person:

(1) completes [appointed to or scheduled to serve as

an ex officio member of the board must complete at least one course

of] a training program that complies with Subsection (g); and

(2) signs and submits to the executive director a

statement acknowledging that the member completed the training

program and the training required under Section 656.053 [this

section]. [A voting or nonvoting board member must complete a

training program that complies with Subsection (g) not later than

the 180th day after the date on which the person takes office or

begins serving as a member of the board.]

(g) The training program must provide the person with

information [to the person] regarding:

(1) the law governing department operations [this

chapter] and the board to which the person is appointed to serve;

(2) the programs, functions, rules, and budget of

[operated by] the department;

(3) the scope of and limitations on the rulemaking

authority of the department [the role and functions of the

department];

(4) the results of the most recent formal audit of the

department [rules of the department, with an emphasis on the rules

that relate to disciplinary and investigatory authority];

(5) the requirements of:

(A) laws relating to open meetings, public

information, administrative procedure, and disclosing conflicts of

interest; and

(B) other laws applicable to members of a state

policy-making body in performing their duties [current budget for

the department];

(6) [the results of the most recent formal audit of the

department;

[(7) the requirements of the:

[(A) open meetings law, Chapter 551;

[(B) open records law, Chapter 552; and

[(C) administrative procedure law, Chapter 2001;

[(8) the requirements of the conflict of interest laws

and other laws relating to public officials;

[(9)] any applicable ethics policies adopted by the

department or the Texas Ethics Commission; and

(7) [(10)] contract management training.

(h) A person appointed to the board is entitled to

reimbursement, as provided by the General Appropriations Act, for

travel expenses incurred in attending the training program,

regardless of whether the attendance at the program occurs before

or after the person qualifies for office [as provided by the General

Appropriations Act and as if the person were a member of the board ].

(i) The executive director shall create a training manual

that includes the information required by Subsection (g). The

executive director shall distribute a copy of the training manual

annually to each member of the board. Each member of the board

shall sign and submit to the executive director a statement

acknowledging that the member received and has reviewed the

training manual.

SECTION 5. Section 2054.024(c), Government Code, is amended

to read as follows:

competent jurisdiction is that a board [an ex officio or other]

member [of the board] may not serve on the board under the Texas

Constitution, the [appropriate individual shall promptly submit a

list to the] governor shall appoint [for the appointment of] a

replacement who may serve.

SECTION 6. The heading to Section 2054.033, Government

Code, is amended to read as follows:

Sec. 2054.033. ESTABLISHMENT OF ADVISORY COMMITTEES;

ADMINISTRATION AND REQUIREMENTS.

SECTION 7. Section 2054.033, Government Code, is amended by

amending Subsection (a) and adding Subsections (e), (f), and (g) to

read as follows:

(a) The board and the executive director, if authorized by

the board, by rule may establish [appoint] advisory committees as

the department considers necessary to provide expertise to the

department.

(e) With respect to an advisory committee whose

jurisdiction covers a service provided by the department to state

agencies, in appointing members to the advisory committee the board

shall:

(1) to the extent practicable, ensure that the

advisory committee is composed of a cross-section of the

department’s customers who use the service; and

(2) appoint, in addition to the member required by

Subsection (d), at least one member who is an employee of a state

agency with 500 or fewer full-time employees.

(f) The board shall adopt rules to govern each advisory

committee of the department. The rules must include:

(1) the purpose, role, goals, composition, and

duration of the advisory committee;

(2) as to the advisory committee members:

(A) the appointment procedures, terms, and

quorum requirements;

(B) conflict-of-interest policies; and

training requirements;

(3) as appropriate, a method the department must use

to receive public input on issues considered by the advisory

committee; and

(4) as appropriate, a method for sharing findings and

information of the advisory committee with the public and the

board.

(g) Except as otherwise provided by this chapter, an

advisory committee of the department is subject to Chapter 2110.

SECTION 8. Subchapter B, Chapter 2054, Government Code, is

amended by adding Sections 2054.0333, 2054.0335, and 2054.0337 to

read as follows:

Sec. 2054.0333. ADVISORY COMMITTEES ON DEPARTMENT

FUNCTIONS REQUIRED. The board by rule shall establish advisory

committees under Section 2054.033 that advise the board on

governing the department and cover in subject matter the

department’s primary functions, including at least one advisory

committee for each of the following subjects:

(1) procurement under Subchapter B, Chapter 2157;

(2) the development and implementation of information

security programs; and

(3) the preparation of the state strategic plan

required by Section 2054.091.

Sec. 2054.0335. STATEWIDE INFORMATION SECURITY ADVISORY

COMMITTEE. (a) The board by rule shall establish an advisory

committee under Section 2054.033 to make recommendations to the

department on improving the effectiveness of the department’s and

this state’s information security operations.

(b) The advisory committee must include members who are

information security professionals employed by state agencies and

local governments.

chief information security officer under Section 2054.510.

Sec. 2054.0337. CUSTOMER ADVISORY COMMITTEE. (a) The

board by rule shall establish an advisory committee under Section

2054.033 to report to and advise the board on improving the

effectiveness and efficiency of services provided by the department

to customers.

(b) The board shall appoint advisory committee members who

are employees of state agencies that:

(1) use the department’s services; and

(2) have 500 or fewer full-time employees, including

at least three members who are employees of state agencies that have

150 or fewer full-time employees.

SECTION 9. Section 2054.035(b), Government Code, is amended

to read as follows:

(b) The department shall prepare information of public

interest describing the functions of the department [and the

procedures by which complaints are filed with and resolved by the

department]. The department shall make the information available

to the public and appropriate state agencies.

SECTION 10. Section 2054.036, Government Code, is amended

to read as follows:

Sec. 2054.036. COMPLAINTS. (a) The department shall

maintain a system to promptly and efficiently act on complaints

filed with the department. The department shall maintain

information about parties to the complaint, the subject matter of

the complaint, and a summary of the results of the review or

investigation of the complaint, and its disposition. [keep a file

about each written complaint filed with the department that the

department has authority to resolve. The department shall provide

to the person filing the complaint and the persons or entities

complained about the department’s policies and procedures

pertaining to complaint investigation and resolution. The

department, at least quarterly and until final disposition of the

complaint, shall notify the person filing the complaint and the

persons or entities complained about of the status of the complaint

unless the notice would jeopardize an undercover investigation.]

(b) The department shall make information available

describing its procedures for complaint investigation and

resolution [keep information about each complaint filed with the

department]. [The information shall include:

[(1) the date the complaint is received;

[(2) the name of the complainant;

[(3) the subject matter of the complaint;

[(4) a record of all persons contacted in relation to

the complaint;

[(5) a summary of the results of the review or

investigation of the complaint; and

[(6) for complaints for which the department took no

action, an explanation of the reason the complaint was closed

without action.]

parties of the status of the complaint until final disposition

unless the notice would jeopardize an ongoing investigation.

SECTION 11. Sections 2054.055(b) and (b-2), Government

Code, are amended to read as follows:

(b) The report must:

(1) assess the progress made toward meeting the goals

and objectives of the state strategic plan for information

resources management;

(2) describe major accomplishments of the state or a

specific state agency in information resources management;

(3) describe major problems in information resources

management confronting the state or a specific state agency;

(4) provide a summary of the total expenditures for

information resources and information resources technologies by

the state;

(5) make recommendations for improving the

effectiveness and cost-efficiency of the state’s use of information

resources;

(6) describe the status, progress, benefits, and

efficiency gains of the state electronic Internet portal project,

including any significant issues regarding contract performance;

(7) provide a financial summary of the state

electronic Internet portal project, including project costs and

revenues;

(8) [provide a summary of the amount and use of

Internet-based training conducted by each state agency and

institution of higher education;

[(9)] provide a summary of agency and statewide

results in providing access to electronic and information resources

to individuals with disabilities as required by Subchapter M;

(9) [(10)] assess the progress made toward

accomplishing the goals of the plan for a state telecommunications

network and developing a system of telecommunications services as

provided by Subchapter H; and

(10) [(11)] identify proposed major information

resources projects for the next state fiscal biennium, including

project costs through stages of the project and across state fiscal

years from project initiation to implementation.

(b-2) The information required under Subsection (b)(10)

[(b)(11)] must include:

(1) final total cost of ownership budget data for the

entire life cycle of the major information resources project,

including capital and operational costs that itemize staffing

costs, contracted services, hardware purchased or leased, software

purchased or leased, travel, and training;

(2) the original project schedule and the final actual

project schedule;

(3) data on the progress toward meeting the original

goals and performance measures of the project, specifically those

related to operating budget savings;

(4) lessons learned on the project, performance

evaluations of any vendors used in the project, and reasons for

project delays or cost increases; and

(5) the benefits, cost avoidance, and cost savings

generated by major technology resources projects.

SECTION 12. Subchapter C, Chapter 2054, Government Code, is

amended by adding Section 2054.057 to read as follows:

Sec. 2054.057. PROCUREMENT SERVICES PILOT PROGRAM. (a) In

this section:

(1) “Participating state agency” means a state agency

that the department has approved to participate in the pilot

program.

(2) “Pilot program” means the procurement services

pilot program established under this section.

(3) “State agency” means a board, commission, office,

department, or other agency in the executive, judicial, or

legislative branch of state government. The term does not include

an institution of higher education, as defined by Section 61.003,

Education Code.

(b) The department shall establish a pilot program under

which the department provides assistance in the procurement of

information resources technologies on request by a participating

state agency.

if the department approves of the participation in writing.

(d) The department may limit the:

(1) number of participating state agencies in the

pilot program; and

(2) types of information resources technologies for

which procurement assistance is provided under the pilot program.

(e) Services under the pilot program may include assistance

with:

(1) procurement planning;

(2) developing a cost estimate for an information

resources technologies project; and

(3) drafting and developing a solicitation.

(f) With respect to any procurement assistance provided by

the department under the pilot program, the department:

(1) may not control the procurement for which the

assistance is provided or the management of any resulting contract;

and

(2) is not civilly liable for damages resulting from

the provision of procurement assistance unless the damages result

from intentional conduct or gross negligence.

(g) Not later than December 1, 2028, the department shall

submit a report to the legislature that includes a summary of the

pilot program’s activities and a recommendation of whether to

continue or expand the program.

(h) This section expires January 1, 2029.

SECTION 13. Section 2054.075(b), Government Code, is

amended to read as follows:

(b) Each state agency information resources manager is part

of the agency’s executive management and reports directly to the

executive head or deputy executive head of the agency. Each state

agency shall report to the department the extent and results of its

compliance with this subsection and include with the report an

organizational chart showing the structure of the personnel in the

agency’s executive management. [The department shall report the

extent and results of state agencies’ compliance with this

subsection to the legislature.]

SECTION 14. Section 2054.097, Government Code, is amended

by adding Subsections (c), (d), and (e) to read as follows:

limited evaluation of the information resources deployment review

of at least five state agencies to verify the accuracy of those

reviews. The department may limit the evaluation to review

responses on subjects that represent the highest risks or greatest

opportunities for improvement regarding the state agency’s

software, hardware, compliance, and cybersecurity.

(d) The department is not required to conduct site visits as

part of the limited evaluation required by Subsection (c).

(e) The department shall use information received from the

limited evaluation required by Subsection (c) to:

(1) update trainings for and outreach to information

resources managers on accurately completing the information

resources deployment review; and

(2) recommend information resources technology

solutions to state agencies as needed.

SECTION 15. Section 2054.2606(c), Government Code, is

amended to read as follows:

under this section shall determine the information to be included

in the system and the manner for collecting and reporting the

information. At a minimum, the entity shall include the following

information in the profile system:

(1) the name of the license holder and the address and

telephone number of the license holder’s primary practice location;

(2) whether the license holder’s patient, client,

user, customer, or consumer service areas, as applicable, are

accessible to [disabled] persons with disabilities, as defined by

federal law;

(3) the type of language translating services,

including translating services for a person who is deaf or hard

[with impairment] of hearing, that the license holder provides for

patients, clients, users, customers, or consumers, as applicable;

(4) if applicable, insurance information, including

whether the license holder participates in the state child health

plan under Chapter 62, Health and Safety Code, or the Medicaid

program;

(5) the education and training received by the license

holder, as required by the licensing entity;

(6) any specialty certification held by the license

holder;

(7) the number of years the person has practiced as a

license holder; and

(8) if applicable, any hospital affiliation of the

license holder.

SECTION 16. Section 2054.456(a), Government Code, is

amended to read as follows:

(a) Each state agency shall, in developing, procuring,

maintaining, or using electronic and information resources, ensure

that state employees with disabilities have access to and the use of

those resources comparable to the access and use available to state

employees without disabilities, unless compliance with this

section imposes a significant difficulty or expense on the agency

under Section 2054.460. Subject to Section 2054.460, the agency

shall take reasonable steps to ensure that an [a disabled] employee

with a disability has reasonable access to perform the employee’s

duties.

SECTION 17. The heading to Section 2054.515, Government

Code, is amended to read as follows:

Sec. 2054.515. AGENCY DATA GOVERNANCE [INFORMATION

SECURITY] ASSESSMENT AND REPORT.

SECTION 18. Section 2054.515, Government Code, is amended

by amending Subsections (a), (c), and (d) and adding Subsection

(a-1) to read as follows:

(a) At least once every two years, each state agency shall

conduct an [information security] assessment of the agency’s[:

[(1) information resources systems, network systems,

digital data storage systems, digital data security measures, and

information resources vulnerabilities; and

[(2)] data governance program with participation from

the agency’s data management officer, if applicable, and in

accordance with requirements established by department rule.

(a-1) Not later than June 1 of each even-numbered year, each

state agency shall report the results of the assessment conducted

under Subsection (a) to:

(1) the department; and

(2) on request, the governor, the lieutenant governor,

and the speaker of the house of representatives.

for the [information security] assessment and report required by

this section.

(d) The report and all documentation related to the

[information security] assessment and report are confidential and

not subject to disclosure under Chapter 552. The state agency or

department may redact or withhold the information as confidential

under Chapter 552 without requesting a decision from the attorney

general under Subchapter G, Chapter 552.

SECTION 19. Sections 2054.5191(a), (a-1), and (a-2),

Government Code, are amended to read as follows:

(a) At least once each year, each employee of a [Each] state

agency [shall identify state employees who use a computer to

complete at least 25 percent of the employee’s required duties. At

least once each year, an employee identified by the state agency]

and each elected or appointed officer of the agency shall complete a

cybersecurity training program certified under Section 2054.519.

(a-1) At least once each year, each employee and each

elected or appointed official of a local government shall[:

[(1) identify local government employees and elected

and appointed officials who have access to a local government

computer system or database and use a computer to perform at least

25 percent of the employee’s or official’s required duties; and

[(2) require the employees and officials identified

under Subdivision (1) to] complete a cybersecurity training program

certified under Section 2054.519.

(a-2) The governing body of a local government or the

governing body’s designee may deny access to the local government’s

computer system or database to an employee or official of the local

government [an individual described by Subsection (a-1)(1)] who the

governing body or the governing body’s designee determines is

noncompliant with the requirements of Subsection (a-1) [(a-1)(2)].

SECTION 20. Subchapter N-1, Chapter 2054, Government Code,

is amended by adding Section 2054.5195 to read as follows:

Sec. 2054.5195. INFORMATION SECURITY ASSESSMENT AND

PENETRATION TEST REQUIRED. (a) This section does not apply to a

university system or institution of higher education as defined by

Section 61.003, Education Code.

(b) At least once every two years, the department shall

require each state agency to complete an information security

assessment and a penetration test to be performed by the department

or, at the department’s discretion, a vendor selected by the

department.

implement this section, including rules for the procurement of a

vendor under Subsection (b).

SECTION 21. The following provisions of the Government Code

are repealed:

(1) Section 2054.021(d);

(2) Section 2054.023(c);

(3) Section 2054.0331;

(4) Section 2054.091(d);

(5) Section 2054.0925(c);

(6) Section 2054.515(b), as amended by Chapter 567

(S.B. 475), Acts of the 87th Legislature, Regular Session, 2021;

and

(7) Section 2054.515(b), as amended by Chapter 856

(S.B. 800), Acts of the 87th Legislature, Regular Session, 2021.

SECTION 22. (a) In this section, “institution of higher

education” has the meaning assigned by Section 61.003, Education

Code.

(b) As soon as possible after the effective date of this

Act, as the terms of members of the governing board of the

Department of Information Resources expire or as vacancies occur,

the governor shall appoint members to the board so that the board is

composed in accordance with Section 2054.021, Government Code, as

amended by this Act, except that the term of the member of the board

serving on the board immediately before the effective date of this

Act who holds the position of the member who is employed by an

institution of higher education expires on that date. A member of

the governing board whose term expires under this subsection is

eligible for reappointment under Subsection (c) of this section.

appoint the following members to the governing board of the

Department of Information Resources in accordance with Section

2054.021, Government Code, as amended by this Act:

(1) one voting member to serve a term that expires

February 1, 2031; and

(2) one nonvoting member to the position of the member

who is employed by an institution of higher education to serve a

term that expires February 1, 2027.

SECTION 23. (a) Except as provided by Subsection (b) of

this section, Section 2054.021(f), Government Code, as amended by

this Act, applies to a member of the governing board of the

Department of Information Resources appointed before, on, or after

the effective date of this Act.

(b) A member of the governing board of the Department of

Information Resources who, before the effective date of this Act,

completed the training program required by Section 2054.021(f),

Government Code, and described in Section 2054.021(g), Government

Code, as that law existed before the effective date of this Act, is

only required to complete additional training on the subjects added

by this Act to the training program described by Section

2054.021(g), Government Code. A member described by this

subsection may not vote, deliberate, or be counted as a member in

attendance at a meeting of the board held on or after December 1,

2025, until the member completes the additional training.

SECTION 24. This Act takes effect September 1, 2025.

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