HBA-BSM H.B. 2773 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2773 By: Chavez State Affairs 3/21/2001 Introduced BACKGROUND AND PURPOSE Currently, state law does not provide a state agency the authority to cancel projects that fail to meet expectations. Because of this, there is the potential for state agencies to continue spending funds on ineffective projects. House Bill 2773 authorizes state agencies to cancel electronic government projects that fail to meet expectations. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2773 amends the Government Code to prohibit a state agency from spending appropriated funds for an electronic government project if the Department of Information Resources (department) determines that the project fails to meet expectations. The bill requires the department to consult with the Legislative Budget Board and the budget division of the governor's office when making the determination. The bill requires the department after the consultation to establish: _criteria for determining if an electronic government project fails to meet expectations; _procedures for negotiating with a state agency that is not allowed to spend appropriated funds for an electronic government; _allowing a state agency to resume spending appropriated funds for the electronic government project; and _recommending options for future spending of the appropriated funds. H.B. 2773 requires the department to establish a quality assurance team to monitor projects over which the department has jurisdiction. The team is required to monitor all projects to determine compliance with department standards. The bill also authorizes the department to create a program management office to perform these duties of the department. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.