HBA-TYH, DMD H.B. 1895 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1895
By: Maxey
State Affairs
7/22/1999
Enrolled



BACKGROUND AND PURPOSE 

Between 1994 and 1997, Texas state government agencies and universities
spent $346 million on software and software maintenance. During this
period, the average annual cost of software licenses grew 13 percent and
the average cost of maintenance increased by 19 percent.  

H.B. 1895 requires the Department of Information Resources (department),
General Services Commission (commission), state auditor, and comptroller to
create an interagency panel (panel) to develop and establish a training
program to assist state agencies in performing software audits, managing
software, and purchasing software and software licenses. This bill requires
each state agency to cooperate with the panel. It requires the panel to
initially concentrate on the software purchasing and management needs of
the 20 state agencies with the largest amounts budgeted for software
expenditures.  H.B. 1895 requires each state agency to perform an audit of
software licenses biennially. This bill requires the department to
negotiate with qualified information systems vendors to attempt to obtain a
favorable price for all of state government on licenses for commodity
software items.  The department is also required to compile and maintain a
list of commodity software items available through the department with
lower prices than otherwise available. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Department of Information
Resources, in SECTION 2 ( Section 2157.068, Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter F, Chapter 2054, Government Code, by adding
Sections 2054.121 and 2054.122, as follows: 

Sec. 2054.121. STATE AGENCY SOFTWARE PORTFOLIO MANAGEMENT TRAINING. (a)
Requires the Department of Information Resources (department), General
Services Commission (commission), state auditor, and comptroller to create
an interagency panel of representatives appointed by those agencies and
officers (panel) to develop and establish a training program to assist
state agencies in performing software audits, managing software, and
purchasing software and software licenses. Requires each state agency to
cooperate with the panel in the evaluation of the agency's needs for
software management and to donate agency resources to the evaluation of the
agency as the panel requires.  

(b) Requires the panel to concentrate initially on the software purchasing
and management needs of the 20 state agencies that have the largest amounts
budgeted for expenditures related to software.  

(c) Requires the panel to begin to conduct training programs in software
management for employees and officers of state agencies, as soon as
practicable. Authorizes the panel to schedule a training program for an
agency after consulting with the governing body of the agency. Requires
each state agency to cooperate with the panel in the training program and
to provide agency resources for the training program as the panel requires
at no cost to the panel.  
 
Sec. 2054.122. STATE AGENCY SOFTWARE LICENSE AUDIT. (a) Requires each state
agency to perform a biennial audit of software licenses for software
installed in the agency's desktop and portable computers.  

(b) Requires the audit to report whether the agency is paying for a license
for software that is not being used by the agency or that the agency does
not need. Requires the agency to report the results of the audit to the
department in a form and including information prescribed by rules of the
department. Provides that the report must be included in the agency's
operating plan submitted under Section 2054.100(a) (Biennial Operating Plan
of State Agency).  

(c) Requires an agency that determines it is paying for a license for
software the agency is not using or does not need to take necessary actions
to eliminate the unnecessary license expense. 

(d) Requires the department to compile the results of the audit reports it
receives under this section into a report. Provides that the report must
summarize the savings realized by the software audits under this chapter
(Information Resources). Requires the department to submit the report
together with the department's legislative appropriations request.  

SECTION 2. Amends Subchapter B, Chapter 2157, Government Code, by adding
Section 2157.068, as follows: 

Sec. 2157.068.  PURCHASE OF COMMODITY SOFTWARE ITEMS.  (a)  Defines
"commodity software items" and "department."  
 
(b)  Requires the department to negotiate with qualified information
systems vendors to attempt to obtain a favorable price for all of state
government on licenses for commodity software items, based on the aggregate
volume of purchases expected to be made by the state.   Prohibits the terms
and conditions of a license agreement between a vendor and the department
under this section from being less favorable to the state than the terms of
similar license agreements between the vendor and retail distributors.  
 
(c)  Authorizes the department to charge a reasonable administrative fee to
a state agency or political subdivision that purchases commodity software
items through the department that is sufficient to recover costs associated
with the administration of this section.  
 
(d)  Requires the department to compile and maintain a list of commodity
software items available for purchase through the department that have a
lower price than the prices for commodity software items otherwise
available to state agencies under this chapter (Purchasing: Purchase of
Automated Information Systems).  Requires the department to make the list
available on the world wide web or on a suitable successor to the world
wide web if the technological developments involving the Internet make it
advisable to do so.  
 
(e)  Authorizes the department to adopt rules regulating a purchase by a
state agency of a commodity software item under this section, including a
requirement that, notwithstanding other provisions of this chapter, the
agency must make the purchase in accordance with a contract developed by
the department unless the agency obtains a waiver from the department.  

SECTION 3.Effective date: September 1, 1999. 

SECTION 4.Emergency clause.