HBA-KDB S.B. 1458 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1458 By: Duncan State Affairs 5/11/2001 Engrossed BACKGROUND AND PURPOSE Currently, Texas is moving forward with electronic government (e-government) with no one organization responsible for ensuring that e-government advances effectively and efficiently in an increasingly high-tech world. There is concern that the lack of coordination between government entities regarding e-government has resulted in increased costs to taxpayers because of the unnecessarily replicated costs of developing and implementing systems, incompatible systems, poor interoperability, and ineffective security. Senate Bill 1458 establishes an electronic government program management office in the Department of Information Resources to guide, promote, and facilitate the implementation of select e-government projects and to manage the ongoing development of the TexasOnline portal. 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 1.01 (Sections 2055.057, 2055.101, 2055.102, and 2055.105, Government Code) and SECTION 1.06 and to the General Services Commission in SECTION 4.05 (Section 2177.004, Government Code), SECTION 6.01 (Section 2155.079, Government Code), and SECTION 6.02 of this bill. ANALYSIS Electronic Government Program Management Office Senate Bill 1458 establishes the framework for the electronic management of state agency and local government projects, equipment, and contracts. S.B. 1458 amends the Government Code to require the Department of Information Resources (DIR) to create an electronic government program management office (office) to direct and facilitate the implementation of electronic government projects (projects) (Sec. 2055.051). The bill authorizes an institution of higher education (institution), subject to approval by the office, to elect to participate (Sec. 2055.002). The bill sets forth the office's general powers and duties and authorizes the office to coordinate projects involving local government or the federal government (Secs. 2055.052 and 2055.053). The bill sets forth provisions relating to coordination among state agencies for projects and approval of spending for projects and requires a state agency to cooperate with the office and DIR (Secs. 2055.054 and 2055.055). In coordination with the comptroller of public accounts (comptroller), Governor's Office of Budget and Planning, state auditor, and Legislative Budget Board (LBB), the bill requires the office to develop a model for funding the office from a portion of the money appropriated for selected projects, including staff necessary for the office. The bill requires the office to submit such a model for approval by the governor and adoption by DIR as a rule not later than May 31, 2002 (Sec. 2055.057 and SECTION 1.06). The bill requires the office to use the West Texas Disaster Recovery and Operations Center (center) for the consolidation of data operations and recovery to the extent that using the center provides the best value to the state. The bill requires the office to serve as the state's primary contact with the center regarding the consolidation of data operations and recovery (Sec. 2055.059). In coordination with the state auditor, LBB, and the affected state agency, the bill requires the office to provide quality assurance services to monitor electronic government projects (Sec. 2055.056). The bill requires the office, in coordination with the governor, state auditor, and LBB, to develop selection criteria for the type of projects that require direct oversight by the office and provides what the criteria must include. The bill authorizes the office to select projects in coordination with the governor, state auditor, and LBB. The bill requires the office to submit the developed criteria to DIR, which is required to adopt the developed criteria by rule not later than May 31, 2002 (Sec. 2055.101 and SECTION 1.06). The bill establishes the appeal process for a state agency that disagrees with the selection of a project and requires DIR by rule to adopt appeal procedures not later than May 31, 2002 (Sec. 2055.102 and SECTION 1.06). The bill requires the office, to the extent possible, to use TexasOnline for projects that it manages and to evaluate current and potential projects to determine whether they are suitable for TexasOnline (Sec. 2055.103). The bill provides that state agencies must receive office approval before spending or encumbering money on selected projects and sets forth provisions regarding the authority to terminate or reinstate spending on projects and the establishment of procedures for approval of spending (Secs. 2055.104 and 2055.105). The bill requires DIR by rule, not later than May 31, 2002, to adopt the criteria the office is required to submit to DIR regarding the termination or reinstatement of selected projects (Sec. 2055.105 and SECTION 1.06). The bill requires standards and plans to be developed for implementing projects for enterprise resource planning systems and new businesses (Secs. 2055.106 and 2055.107). The bill requires the office, not later than September 1, 2002, to complete the plan required for the creation of a project to provide new businesses. The plan must outline the recommendations and resources necessary to further develop and implement the Internet services provided. The bill requires the business permit office of the Texas Department of Economic Development and any other affected state agencies to assist the office in developing the plan (SECTION 1.07). Legislative Oversight Committee for Electronic Government Projects The bill creates the Legislative Oversight Committee for Electronic Government Projects (oversight committee) to oversee the establishment of projects by the office and state agencies and sets forth its general powers and duties (Secs. 2055.152-2055.155). The six-member oversight committee consists of the chairpersons of the house committee on appropriations, the house committee on state affairs, the senate committee on finance, and the senate committee on state affairs as well as one member of the house of representatives and one member of the senate, appointed by the speaker of the house of representatives and the lieutenant governor, respectively. The bill requires the oversight committee to annually select a member to serve as presiding officer (Secs. 2055.153 and 2055.154). The members of the oversight committee must be designated not later than November 15, 2001 (SECTION 1.04). The bill requires the oversight committee, not later than January 15, 2002, to appoint a working group composed of representatives of the comptroller's office, other state agencies, and local governments (SECTION 8.03). The bill requires the oversight committee to recommend, to the state agency with primary responsibility for implementing TexasOnline, what constitutes the infrastructure of TexasOnline (Sec. 2055.156). The bill requires the oversight committee to make recommendations to the legislature based on reports prepared by the office or any other division of DIR with responsibilities regarding TexasOnline and the state agency with primary responsibility for implementing TexasOnline (Sec. 2055.157). The bill requires DIR to consider any comments from the oversight committee before adopting rules (Sec. 2055.160). Electronic Government Program Management Office Advisory Committee The bill requires the governing board of DIR (board) to create an electronic government program management office advisory committee (advisory committee) to provide ongoing direction for the operation of the office and to appoint the members of the advisory committee not later than January 15, 2002. The bill sets forth the membership requirements and duties of the advisory committee (Sec. 2055.201 and SECTION 1.05). The bill provides for office review of state agency strategic and biennial operating plans (plans), reports on projects, and an annual report to the oversight committee (Secs. 2055.202-2055.204). The bill requires the office, not later than November 1, 2001, to complete its recommendations on modifying instructions for the plans based on the initial review of the plans (SECTION 1.03). The bill provides that the performance report reviewed by the board on the use of information resources technologies by state government must include a list compiled by the office from the information gathered from plans and reports on projects and must include appropriate information from the annual report to the oversight committee (Sec. 2054.055). Seat Management Office The bill requires DIR to create a seat management office (management office) to conduct and evaluate a pilot study on the total cost of all personal computers and related systems used by 10 to 12 selected state agencies, make recommendations on the use of private contractors to implement a statewide seat management system, and advise state agencies on seat management issues (Secs. 2054.352, 2054.354, and 2054.355). The bill requires each state agency, not later than September 1, 2002, and September 1, 2003, to provide the management office with an inventory of all personal computers used by that agency as of June 1, 2002, and June 1, 2003, respectively (Sec. 2054.356). Provisions relating to the seat management office expire on September 1, 2003 (Sec. 2054.357). TexasOnline The bill requires the division of DIR with responsibility for TexasOnline to coordinate the ongoing development of TexasOnline with the office (Sec. 2055.058). The bill prohibits a state agency, that is not a university system or an institution of higher education, from duplicating an infrastructure component of TexasOnline unless the office approves the duplication (Sec. 2054.113). The bill creates the TexasOnline grant program (grant program) to enable counties, municipalities, and school districts to provide electronic government services through TexasOnline subject to the specific appropriation of funds (Sec. 2054.302 and SECTION 3.04). The bill sets forth provisions relating to the management of the grant program by the office (Sec. 2054.303). The bill requires DIR to establish an interagency oversight committee (interagency committee) to oversee implementation of the grant program and to approve the distribution of grants under the grant program not later than January 15, 2002. The bill sets forth membership requirements and duties of the interagency committee and provides that the interagency committee is not an advisory committee (Sec. 2054.304). The bill sets forth provisions relating to the preference for distribution of grant money, conditions for receiving such a grant, and the use of grant money (Secs. 2054.305-2054.307). Provisions relating to the grant program expire on September 1, 2003 (Sec. 2054.308). Electronic Procurement System If the electronic commerce network (commerce network) is integrated into, or replaced by, an electronic procurement system (procurement system) implemented by DIR and accessed through TexasOnline, the bill requires the General Services Commission (GSC) and DIR, to enter into an agreement regarding distribution of the fees charged for transactions on the commerce network, to recover the cost of TexasOnline (Sec. 2177.002). The bill replaces references to the commerce network with references to the procurement system. The bill requires each state agency to send to GSC for posting on the procurement system information on each procurement contract that GSC, in consultation with DIR, determines is appropriate for electronic procurement. The bill requires GSC and each participating state agency, local government, or institution of higher education to include in the information placed on the procurement system, including the commerce network, opportunities available to state agencies, local governments, and institutions for price discounts on volume purchases under the contract (Sec. 2177.003). The bill transfers from the Texas Department of Economic Development to GSC the notice duties relating to procurements exceeding $25,000 (Sec. 2177.004). The bill authorizes an institution to participate in the procurement system (Sec. 2177.005). The bill authorizes GSC to make state procurement services, rather than information, available to local governments and institutions, rather than political subdivisions, through the electronic procurement marketplace and authorizes GSC to set transaction fees in a prescribed manner (Sec. 2177.001). Study on Electronic Grants System and Use of Local Government Contracts The bill sets forth provisions requiring DIR to study and report on the costs and benefits of establishing a statewide electronic grants management system (SECTION 5.01). The bill requires GSC to adopt rules, not later than February 28, 2002, specifying the circumstances under which it is not advantageous for the state to allow a state agency to purchase goods or services under a contract made by a local government or another state agency other than GSC. The bill provides that a state agency no longer has to establish that the goods or services being offered under its contract are not available under a contract administered by GSC and inform GSC of the terms of the contract and the capabilities of the vendor for the purchasing agency to be authorized to offer the goods or services to other agencies or local governments (Sec. 2155.079 and SECTION 6.02). Online Employment Openings System The bill requires DIR to work with the Texas Workforce Commission (TWC) and other state agencies to create a system for listing state agency employment openings on the Internet and sets forth characteristics that the system must include (Sec. 656.002). The bill requires TWC to make computers available to the public at its field offices to ensure access to information about employment openings (Sec. 656.003). The bill provides that TWC is no longer required to publicly list for at least 10 working days each notice of a job vacancy (Sec. 656.024). Reporting Requirements The bill requires DIR, not later than September 1, 2002, to study the instructions used for preparing agency strategic plans and sets forth requirements of the study (SECTION 8.01). The bill requires DIR, in coordination with the comptroller and other state agencies, the Texas Conference of Urban Counties, the Texas Association of Counties, and the Texas Municipal League, to develop specifications for a statewide electronic data clearinghouse (clearinghouse) and to develop options for funding the maintenance or expansion of the clearinghouse. Each option must address the potential impact on participation by governmental entities. The bill requires DIR, not later than January 1, 2003, to provide a report containing the recommendations, specifications, and funding options to the governor, lieutenant governor, and the speaker of the house of representatives. The bill requires DIR, not later than August 31, 2003, to develop policies, procedures, data standards, training materials, and perform any other duties necessary to prepare for the establishment of the clearinghouse by August 31, 2004 (SECTION 8.02). The bill requires DIR to comprehensively examine all state reporting requirements for counties and municipalities. The bill sets forth the goals of the examination, which must include an inventory of all reports that counties and municipalities must produce in response to state requirements and which must also show the current status of electronic reporting. The bill requires DIR, not later than January 1, 2003, to report on its recommendations for streamlining and reducing reporting requirements on counties and municipalities to the lieutenant governor, the speaker of the house of representatives, and the oversight committee (SECTION 8.03). Chief Information Officer, Vendor Incentives, and Confidential Information The bill provides that executive director of the board is the chief information officer for Texas state government and sets for the authority of the executive director (Sec. 2054.0285). When contracting with a vendor to perform a task related to a project, the bill requires DIR to consider methods of payments, including considering whether a percentage of money to be saved could be used to provide an incentive to the vendor to complete the project on time and under budget (Sec. 2054.058). The bill provides that information is excepted from the provisions relating to the availability of public information if it is information that relates to computer network security or to the design, operation, or defense of a computer network. The bill sets forth which information is confidential (Sec. 552.136). Advanced Database System for Audits and Advanced Technology Equipment S.B. 1458 amends the Tax Code to require the comptroller to develop an advanced electronic audit database system (database system) for use by the comptroller's audit division and specifies what the database system must include. The bill authorizes the comptroller to contract with a vendor to develop or implement the system, but the comptroller must protect any confidential information provided to the vendor (Sec. 111.0034). The bill authorizes the comptroller to employ or contract for the services of accountants, assistants, auditors, clerks, information technology specialists, and investigators to provide or use advanced technology equipment (Sec. 111.0045). The bill requires the comptroller to acquire wireless communication equipment for use by its auditors, to acquire portable computers with remote or wireless communications equipment for use by its enforcement staff, and to acquire advanced scanners for its field offices. The bill sets forth requirements of such portable computers and scanners (Secs. 111.351111.353). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.