Bill Text: TX HB4214 | 2019-2020 | 86th Legislature | Engrossed

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Bill Title: Relating to matters concerning governmental entities, including cybersecurity, governmental efficiencies, information resources, and emergency planning.

Spectrum: Slight Partisan Bill (Republican 8-3)

Status: (Engrossed - Dead) 2019-05-01 - Received from the House [HB4214 Detail]

Download: Texas-2019-HB4214-Engrossed.html

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By: Capriglione, Bohac, Blanco, Shaheen, H.B. No. 4214
Bernal, et al.

A BILL TO BE ENTITLED
AN ACT
relating to matters concerning governmental entities, including
cybersecurity, governmental efficiencies, information resources,
and emergency planning.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 37.108(b), Education Code, is amended to
read as follows:
(b) At least once every three years, each school district or
public junior college district shall conduct a safety and security
audit of the district's facilities, including an information
technology cybersecurity assessment. To the extent possible, a
district shall follow safety and security audit procedures
developed by the Texas School Safety Center or a comparable public
or private entity.
SECTION 2. Subchapter C, Chapter 61, Education Code, is
amended by adding Section 61.09092 to read as follows:
Sec. 61.09092. COORDINATION OF CYBERSECURITY COURSEWORK
DEVELOPMENT. (a) In this section, "lower-division institution of
higher education" means a public junior college, public state
college, or public technical institute.
(b) The board, in consultation with the Department of
Information Resources, shall coordinate with lower-division
institutions of higher education and entities that administer or
award postsecondary industry certifications or other workforce
credentials in cybersecurity to develop certificate programs or
other courses of instruction leading toward those certifications or
credentials that may be offered by lower-division institutions of
higher education.
(c) The board may adopt rules as necessary for the
administration of this section.
SECTION 3. Subchapter F, Chapter 401, Government Code, is
amended by adding Section 401.106 to read as follows:
Sec. 401.106. CHIEF INNOVATION OFFICER. (a) The governor
shall appoint a chief innovation officer.
(b) The chief innovation officer shall:
(1) develop procedures and processes to improve
internal state government efficiency and performance;
(2) develop methods to improve the experience of
residents, businesses, and local governments in interacting with
state government;
(3) in cooperation with the Department of Information
Resources, increase the use of technology by state agencies to
improve services provided by the agencies and to reduce state
expenses and inefficiencies;
(4) provide state agency personnel with training in
skills that support innovation;
(5) provide state agency managers with training to
support innovation and encourage creative thinking; and
(6) develop and apply measures to document
improvements in state government innovation and in employee skills
that support innovation.
(c) In performing the duties required under Subsection (b),
the chief innovation officer shall:
(1) use strategic innovation;
(2) promote open innovation;
(3) introduce and use group tools and processes that
encourage creative thinking; and
(4) conduct market research to determine the best
practices for increasing innovation and implement those best
practices.
SECTION 4. Section 418.004(1), Government Code, is amended
to read as follows:
(1) "Disaster" means the occurrence or imminent threat
of widespread or severe damage, injury, or loss of life or property
resulting from any natural or man-made cause, including fire,
flood, earthquake, wind, storm, wave action, oil spill or other
water contamination, volcanic activity, epidemic, air
contamination, blight, drought, infestation, explosion, riot,
hostile military or paramilitary action, extreme heat, cyber
attack, other public calamity requiring emergency action, or energy
emergency.
SECTION 5. Subchapter B, Chapter 421, Government Code, is
amended by adding Section 421.027 to read as follows:
Sec. 421.027. CYBER INCIDENT STUDY AND RESPONSE PLAN. (a)
In this section:
(1) "Cyber incident" means an event occurring on or
conducted through a computer network that actually or imminently
jeopardizes the integrity, confidentiality, or availability of
computers, information or communications systems or networks,
physical or virtual infrastructure controlled by computers or
information systems, or information on the computers or systems.
The term includes a vulnerability in implementation or in an
information system, system security procedure, or internal control
that could be exploited by a threat source.
(2) "Significant cyber incident" means a cyber
incident, or a group of related cyber incidents, likely to result in
demonstrable harm to state security interests, foreign relations,
or the economy of this state or to the public confidence, civil
liberties, or public health and safety of the residents of this
state.
(b) The council, in cooperation with the Department of
Information Resources and the Information Technology Council for
Higher Education, shall:
(1) conduct a study regarding cyber incidents and
significant cyber incidents affecting state agencies and critical
infrastructure that is owned, operated, or controlled by agencies;
and
(2) develop a comprehensive state response plan to
provide a format for each state agency to develop an
agency-specific response plan and to implement the plan into the
agency's information security plan required under Section 2054.133
to be implemented by the agency in the event of a cyber incident or
significant cyber incident affecting the agency or critical
infrastructure that is owned, operated, or controlled by the
agency.
(c) Not later than September 1, 2020, the council shall
deliver the response plan and a report on the findings of the study
to:
(1) the public safety director of the Department of
Public Safety;
(2) the governor;
(3) the lieutenant governor;
(4) the speaker of the house of representatives;
(5) the chair of the committee of the senate having
primary jurisdiction over homeland security matters; and
(6) the chair of the committee of the house of
representatives having primary jurisdiction over homeland security
matters.
(d) The response plan required by Subsection (b) and the
report required by Subsection (c) are not public information for
purposes of Chapter 552.
(e) This section expires December 1, 2020.
SECTION 6. Subchapter F, Chapter 437, Government Code, is
amended by adding Section 437.255 to read as follows:
Sec. 437.255. ASSISTING TEXAS STATE GUARD WITH CYBER
OPERATIONS. To serve the state and safeguard the public from
malicious cyber activity, the governor may command the Texas
National Guard to assist the Texas State Guard with defending the
state's cyber operations.
SECTION 7. Subchapter C, Chapter 531, Government Code, is
amended by adding Section 531.1051 to read as follows:
Sec. 531.1051. TECHNOLOGY FOR ELIGIBILITY FRAUD
PREVENTION. (a) The commission shall use technology to identify
the risk for fraud associated with applications for health and
human services program benefits to prevent fraud with respect to
eligibility determinations for those programs. To the extent
allowed by federal law, the commission shall set appropriate
verification and documentation requirements based on the risk
identified for particular applications to ensure that commission
resources are appropriately targeted to maximize fraud reduction
and accuracy of eligibility determinations.
(b) Enhanced eligibility screening tools the commission
implements for the purposes of this section must use technology
that provides non-modeled employment and income verification data
in an automated electronic format.
SECTION 8. The heading to Section 656.047, Government Code,
is amended to read as follows:
Sec. 656.047. PAYMENT OF PROGRAM AND CERTIFICATION
EXAMINATION EXPENSES.
SECTION 9. Section 656.047, Government Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) A state agency may spend public funds as appropriate
to reimburse a state agency employee or administrator who serves in
an information technology, cybersecurity, or other cyber-related
position for fees associated with industry-recognized
certification examinations.
SECTION 10. Chapter 2051, Government Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. UNIFORM ELECTRONIC LEGAL MATERIAL ACT
Sec. 2051.151. SHORT TITLE. This subchapter may be cited as
the Uniform Electronic Legal Material Act.
Sec. 2051.152. DEFINITIONS. In this subchapter:
(1) "Electronic" means relating to technology having
electrical, digital, magnetic, wireless, optical, electromagnetic,
or similar capabilities.
(2) "Legal material" means, whether or not in effect:
(A) the constitution of this state;
(B) the general or special laws passed in a
regular or special session of the Texas Legislature; and
(C) a state agency rule adopted in accordance
with Chapter 2001.
(3) "Official publisher" means:
(A) for legal material described by Subdivision
(2)(A), the Texas Legislative Council; and
(B) for legal material described by Subdivision
(2)(B) or (C), the secretary of state.
(4) "Publish" means displaying, presenting, or
releasing to the public, or causing to be displayed, presented, or
released to the public, legal material by the official publisher.
(5) "Record" means information that is inscribed on a
tangible medium or that is stored in an electronic or other medium
and is retrievable in perceivable form.
Sec. 2051.153. APPLICABILITY. (a) This subchapter applies
to all legal material in an electronic record that is:
(1) designated as official by the official publisher
under Section 2051.154; and
(2) first published electronically by the official
publisher on or after January 1, 2021.
(b) The official publisher is not required to publish legal
material on or before the date on which the legal material takes
effect.
Sec. 2051.154. LEGAL MATERIAL IN OFFICIAL ELECTRONIC
RECORD. (a) If the official publisher publishes legal material
only in an electronic record, the official publisher shall:
(1) designate the electronic record as official; and
(2) comply with Sections 2051.155, 2051.157, and
2051.158.
(b) If the official publisher publishes legal material in an
electronic record and also publishes the material in a record other
than an electronic record, the official publisher may designate the
electronic record as official if the official publisher complies
with Sections 2051.155, 2051.157, and 2051.158.
Sec. 2051.155. AUTHENTICATION OF OFFICIAL ELECTRONIC
RECORD. (a) If the official publisher designates an electronic
record as official in accordance with Section 2051.154, the
official publisher shall authenticate the record.
(b) The official publisher authenticates an electronic
record by providing a method with which a person viewing the
electronic record is able to determine that the electronic record
is unaltered from the official record published by the official
publisher.
Sec. 2051.156. EFFECT OF AUTHENTICATION. (a) Legal
material in an electronic record that is authenticated as provided
by Section 2051.155 is presumed to be an accurate copy of the legal
material.
(b) If another state has adopted a law that is substantially
similar to this subchapter, legal material in an electronic record
that is authenticated in that state is presumed to be an accurate
copy of the legal material.
(c) A party contesting the authenticity of legal material in
an electronic record authenticated as provided by Section 2051.155
has the burden of proving by a preponderance of the evidence that
the record is not authentic.
Sec. 2051.157. PRESERVATION AND SECURITY OF LEGAL MATERIAL
IN OFFICIAL ELECTRONIC RECORD. (a) The official publisher of legal
material in an electronic record designated as official in
accordance with Section 2051.154 shall provide for the preservation
and security of the record in an electronic form or in a form that is
not electronic.
(b) If legal material is preserved under Subsection (a) in
an electronic record, the official publisher shall:
(1) ensure the integrity of the record;
(2) provide for backup and disaster recovery of the
record; and
(3) ensure the continuing usability of the legal
material in the record.
Sec. 2051.158. PUBLIC ACCESS. The official publisher of
legal material in an electronic record that is required to be
preserved under Section 2051.157 shall ensure that the material is
reasonably available for use by the public on a permanent basis.
Sec. 2051.159. STANDARDS. In implementing this subchapter,
the official publisher of legal material in an electronic record
shall consider:
(1) the standards and practices of other
jurisdictions;
(2) the most recent standards regarding
authentication, preservation, and security of and public access to
legal material in an electronic record and other electronic
records, as adopted by national standard-setting bodies;
(3) the needs of users of legal material in electronic
records;
(4) the views of governmental officials and entities
and other interested persons; and
(5) to the extent practicable, the methods and
technologies for the authentication, preservation, and security of
and public access to legal material that are compatible with the
methods and technologies used by official publishers in other
states that have adopted a law that is substantially similar to this
subchapter.
Sec. 2051.160. UNIFORMITY OF APPLICATION AND CONSTRUCTION.
In applying and construing this subchapter, consideration must be
given to the need to promote uniformity of the law with respect to
the subject matter of this subchapter among states that enact a law
similar to this subchapter.
Sec. 2051.161. RELATION TO ELECTRONIC SIGNATURES IN GLOBAL
AND NATIONAL COMMERCE ACT. This subchapter modifies, limits, and
supersedes the federal Electronic Signatures in Global and National
Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify,
limit, or supersede Section 101(c) of that Act (15 U.S.C. Section
7001(c)) or authorize electronic delivery of any of the notices
described in Section 103(b) of that Act (15 U.S.C. Section
7003(b)).
SECTION 11. Section 2054.059, Government Code, is amended
to read as follows:
Sec. 2054.059. CYBERSECURITY. From available funds, the
department, in consultation with the Information Technology
Council for Higher Education, shall:
(1) establish and administer a clearinghouse for
information relating to all aspects of protecting the cybersecurity
of state agency information;
(2) develop strategies and a framework for:
(A) the securing of cyberinfrastructure by state
agencies, including critical infrastructure; and
(B) cybersecurity risk assessment and mitigation
planning;
(3) develop and provide training to state agencies,
including training for new employees of state agencies, on
cybersecurity measures and awareness;
(4) provide assistance to state agencies on request
regarding the strategies and framework developed under Subdivision
(2); and
(5) promote public awareness of cybersecurity issues.
SECTION 12. Subchapter C, Chapter 2054, Government Code, is
amended by adding Section 2054.069 to read as follows:
Sec. 2054.069. SECURITY GUIDANCE FOR INTERNET CONNECTIVITY
OF CERTAIN OBJECTS. (a) The department, in consultation with
representatives of the information technology industry, voluntary
standards organizations, the 10 state agencies that received the
most state appropriations for that state fiscal year as determined
by the Legislative Budget Board, and the Information Technology
Council for Higher Education, shall develop comprehensive risk
management guidance that identifies baseline security features for
the Internet connectivity of computing devices embedded in objects
used or purchased by state agencies.
(b) In developing the guidance under Subsection (a), the
department shall identify and use existing international security
standards and best practices and any known security gaps for a range
of deployments, including critical systems and consumer usage.
SECTION 13. Section 2054.1184, Government Code, is amended
to read as follows:
Sec. 2054.1184. ASSESSMENT OF MAJOR INFORMATION RESOURCES
PROJECT. (a) A state agency proposing to spend appropriated funds
for a major information resources project must first conduct an
evidence-based execution capability assessment using a scoring
method delivered by an independent third party to:
(1) determine the agency's capability for implementing
the project;
(2) reduce the agency's financial risk in implementing
the project; and
(3) increase the probability of the agency's
successful implementation of the project.
(b) A state agency shall submit to the department, the
quality assurance team established under Section 2054.158, and the
Legislative Budget Board a detailed report that includes
measurement and corrective actions for [identifies] the agency's
operational and technical [organizational] strengths and any
weaknesses that will be addressed before the agency initially
spends appropriated funds for a major information resources
project.
(c) Based on project costs, risks, and technical
difficulty, the department may require a [A] state agency to [may]
contract with an independent third party to conduct the assessment
under Subsection (a) and prepare the report described by Subsection
(b).
(d) The department may allow state agencies to purchase an
execution capability assessment using the purchasing method
described by Section 2157.068 for commodity items.
SECTION 14. Subchapter F, Chapter 2054, Government Code, is
amended by adding Sections 2054.137, 2054.138, and 2054.139 to read
as follows:
Sec. 2054.137. INFORMATION SECURITY CONTINUOUS MONITORING
PROGRAM. (a) In this section:
(1) "Common control" means a security control that is
inherited by one or more information resources technologies.
(2) "Program" means the information security
continuous monitoring program described by this section.
(b) Each state agency shall:
(1) develop and maintain an information security
continuous monitoring program that:
(A) allows the agency to maintain ongoing
awareness of the security and vulnerabilities of and threats to the
agency's information resources;
(B) provides a clear understanding of
organizational risk and helps the agency set priorities and manage
the risk consistently;
(C) addresses how the agency conducts ongoing
authorizations of information resources technologies and the
environments in which those technologies operate, including the
agency's use of common controls;
(D) aligns with the continuous monitoring
guidance, cybersecurity framework, and risk management framework
published in Special Publications 800-137 and 800-53 by the United
States Department of Commerce National Institute of Standards and
Technology;
(E) addresses critical security controls,
including hardware asset management, software asset management,
configuration management, and vulnerability management; and
(F) requires the integration of cybersecurity
products;
(2) establish a strategy and plan to implement a
program for the agency;
(3) to the extent practicable, establish information
security continuous monitoring as an agency-wide solution and
deploy enterprise information security continuous monitoring
products and services;
(4) submit specified summary-level security-related
information to the dashboard established under Subsection (c)(3);
(5) evaluate and upgrade information resources
technologies and deploy new products, including agency and
component information security continuous monitoring dashboards,
as necessary to support information security continuous monitoring
and the need to submit security-related information requested by
the department;
(6) require that external service providers hosting
state information meet state information security requirements for
information security continuous monitoring; and
(7) ensure the agency has adequate staff with the
necessary training to meet the objectives of the program.
(c) The department, in consultation with the Information
Technology Council for Higher Education, shall:
(1) oversee the implementation of this section by each
state agency;
(2) monitor and assist each state agency in
implementation of a program and related strategies; and
(3) establish a summary-level statewide dashboard for
information security continuous monitoring that provides:
(A) a government-wide view of information
security continuous monitoring; and
(B) technical specifications and guidance for
state agencies on the requirements for submitting information for
purposes of the dashboard.
Sec. 2054.138. CYBERSECURITY THREAT SIMULATION EXERCISES.
(a) In this section, "executive staff" means the management or
senior level staff members of a state agency who directly report to
the executive head of a state agency.
(b) The executive head of a state agency and members of the
executive staff may participate in cybersecurity threat simulation
exercises with the agency's information resources technologies
employees to test the cybersecurity capabilities of the agency.
Sec. 2054.139. CYBERSECURITY TRAINING FOR NEW EMPLOYEES.
Not later than the 30th day after the date on which a new employee
begins employment with a state agency, the employee shall complete
the cybersecurity training developed by the department under
Section 2054.059.
SECTION 15. Section 2054.512(d), Government Code, is
amended to read as follows:
(d) The cybersecurity council shall:
(1) consider the costs and benefits of establishing a
computer emergency readiness team to address cyber attacks
occurring in this state during routine and emergency situations;
(2) establish criteria and priorities for addressing
cybersecurity threats to critical state installations;
(3) consolidate and synthesize best practices to
assist state agencies in understanding and implementing
cybersecurity measures that are most beneficial to this state;
[and]
(4) assess the knowledge, skills, and capabilities of
the existing information technology and cybersecurity workforce to
mitigate and respond to cyber threats and develop recommendations
for addressing immediate workforce deficiencies and ensuring a
long-term pool of qualified applicants; and
(5) ensure all middle and high schools have knowledge
of and access to:
(A) free cybersecurity courses and curriculum
approved by the Texas Education Agency;
(B) state and regional information sharing and
analysis centers; and
(C) contracting benefits, including as provided
by Section 2054.0565.
SECTION 16. Subchapter N-1, Chapter 2054, Government Code,
is amended by adding Sections 2054.5155, 2054.519, 2054.5191, and
2054.5192 to read as follows:
Sec. 2054.5155. INDEPENDENT RISK ASSESSMENT. (a) At least
once every five years, in accordance with department rules, each
state agency shall:
(1) contract with an independent third party selected
from a list provided by the department to conduct an independent
risk assessment of the agency's exposure to security risks in the
agency's information resources systems and to conduct tests to
practice securing systems and notifying all affected parties in the
event of a data breach; and
(2) submit the results of the independent risk
assessment to the department.
(b) The department shall include at least one institution of
higher education in the list of independent third parties under
Subsection (a)(1).
(c) The department annually shall compile the results of the
independent risk assessments conducted in the preceding year and
prepare:
(1) a public report on the general security issues
covered by the assessments that does not contain any information
the release of which may compromise any state agency's information
resources system; and
(2) a confidential report on specific risks and
vulnerabilities that is exempt from disclosure under Chapter 552.
(d) The department annually shall submit to the legislature
a comprehensive report on the results of the independent risk
assessments conducted under Subsection (a) during the preceding
year that includes the report prepared under Subsection (c)(1) and
that identifies systematic or pervasive security risk
vulnerabilities across state agencies and recommendations for
addressing the vulnerabilities but does not contain any information
the release of which may compromise any state agency's information
resources system.
Sec. 2054.519. VENDOR RESPONSIBILITY FOR CYBERSECURITY. A
vendor that contracts with this state to provide information
resources technology for a state agency at a cost to the agency of
$1 million or more is responsible for addressing known
cybersecurity risks associated with the technology and is
responsible for any cost associated with addressing the identified
cybersecurity risks. For a major information resources project,
the vendor shall provide to state agency contracting personnel:
(1) a written attestation that:
(A) the vendor has a cybersecurity risk
management program consistent with:
(i) the cybersecurity framework
established by the National Institute of Standards and Technology;
(ii) the 27000 series standards for
information security published by the International Organization
for Standardization; or
(iii) other widely accepted security risk
management frameworks;
(B) the vendor's cybersecurity risk management
program includes appropriate training and certifications for the
employees performing work under the contract; and
(C) the vendor has a vulnerability management
program that addresses vulnerability identification, mitigation,
and responsible disclosure, as appropriate; and
(2) an initial summary of any costs associated with
addressing or remediating the identified technology or
personnel-related cybersecurity risks as identified in
collaboration with this state following a risk assessment.
Sec. 2054.5191. CYBERSTAR PROGRAM; CERTIFICATE OF
APPROVAL. (a) The state cybersecurity coordinator, in
collaboration with the cybersecurity council and public and private
entities in this state, shall develop best practices for
cybersecurity that include:
(1) measureable, flexible, and voluntary
cybersecurity risk management programs for public and private
entities to adopt to prepare for and respond to cyber incidents that
compromise the confidentiality, integrity, and availability of the
entities' information systems;
(2) appropriate training and information for
employees or other individuals who are most responsible for
maintaining security of the entities' information systems;
(3) consistency with:
(A) for a municipality or county, the multihazard
emergency operations plan and the safety and security audit
required under Section 364.0101, Local Government Code; and
(B) the National Institute of Standards and
Technology standards for cybersecurity;
(4) public service announcements to encourage
cybersecurity awareness; and
(5) coordination with local and state governmental
entities.
(b) The state cybersecurity coordinator shall establish a
cyberstar certificate program to recognize public and private
entities that implement the best practices for cybersecurity
developed in accordance with Subsection (a). The program must
allow a public or private entity to submit to the department a form
certifying that the entity has complied with the best practices and
the department to issue a certificate of approval to the entity.
The entity may include the certificate of approval in
advertisements and other public communications.
(c) The state cybersecurity coordinator shall conduct an
annual public event to promote best practices for cybersecurity.
Sec. 2054.5192. ENCRYPTED SECURE LAYER SERVICES REQUIRED.
Each state agency that maintains a publicly accessible Internet
website that requires the submission of sensitive personally
identifiable information shall use an encrypted secure
communication protocol, including a secure hypertext transfer
protocol.
SECTION 17. Subchapter Q, Chapter 2054, Government Code, is
amended by adding Section 2054.577 to read as follows:
Sec. 2054.577. TEXAS INNOVATION FUND AND STATE AGENCY
TECHNOLOGY UPGRADES ACCOUNT. (a) In this section:
(1) "Account" means the state agency technology
upgrades account.
(2) "Board" means the Texas innovation fund board.
(3) "Cloud computing service" has the meaning assigned
by Section 2157.007.
(4) "Device-as-a-service" means a managed service in
which hardware that belongs to a managed service provider is
installed at a state agency and a service level agreement defines
the responsibilities of each party to the agreement.
(5) "Fund" means the Texas innovation fund.
(6) "Information technology system" means any
equipment or interconnected system or subsystem of equipment used
by a state agency, or a person under a contract with a state agency
if the contract requires use of the equipment, to acquire, store,
analyze, evaluate, manipulate, manage, move, control, display,
switch, interchange, transmit, print, copy, scan, or receive data
or other information. The term:
(A) includes a computer, a device-as-a-service
solution, ancillary computer equipment such as imaging, printing,
scanning, and copying peripherals and input, output, and storage
devices necessary for security and surveillance, peripheral
equipment designed to be controlled by the central processing unit
of a computer, software and firmware and similar procedures, and
services, including support services, and related resources; and
(B) does not include equipment acquired by a
contractor incidental to a state contract.
(7) "Legacy information technology system" means an
information technology system that is operated with obsolete or
inefficient hardware or software technology.
(8) "Qualifying information technology modernization
project" means a project by a state agency to:
(A) replace the agency's information technology
systems;
(B) transition the agency's legacy information
technology systems to a cloud computing service or other innovative
commercial platform or technology; or
(C) develop and implement a method to provide
adequate, risk-based, and cost-effective information technology
responses to threats to the agency's information security.
(9) "State agency" has the meaning assigned by Section
2254.151, notwithstanding Section 2054.003.
(b) The Texas innovation fund board is established to
administer the Texas innovation fund and the state agency
technology upgrades account and to make awards of financial
assistance to state agencies from the fund or account for
qualifying information technology modernization projects. The
board is composed of:
(1) one member who is a representative of the
department, appointed by the presiding officer of the governing
board of the department;
(2) one member who is a representative of the office of
the governor, appointed by the governor;
(3) two members of the senate, appointed by the
lieutenant governor;
(4) two members of the house of representatives,
appointed by the presiding officer of the governing board of the
department from a list provided by the speaker of the house of
representatives; and
(5) one public member, appointed by the governor.
(c) Members of the board serve staggered six-year terms. A
board member is not entitled to compensation for service on the
board but is entitled to reimbursement of expenses incurred while
performing duties as a board member.
(d) The Texas innovation fund and the state agency
technology upgrades account are special funds outside the state
treasury to be used by the board, without further legislative
appropriation, as provided by this section.
(e) The fund consists of:
(1) money appropriated, credited, or transferred to
the fund by the legislature;
(2) money received by the board for the repayment of a
loan made from the fund; and
(3) interest and other earnings earned on deposits and
investments of money in the fund.
(f) The account consists of:
(1) money deposited to the account by the comptroller
in the manner prescribed by Subsection (h); and
(2) interest and other earnings earned on deposits and
investments of money in the account.
(g) The department by rule shall establish a loan program to
authorize the board to use money from the fund to provide loans to
state agencies for qualifying information technology modernization
projects. A state agency must apply to the board for a loan from the
fund. The application must include a description of the qualifying
information technology modernization project for which the state
agency is requesting a loan. A loan agreement entered into under
this subsection must require the state agency to:
(1) repay the loan to the board within seven years of
the date the loan is made to the agency; and
(2) make annual reports to the board identifying cost
savings realized by the agency as a result of the project for which
the agency received the loan.
(h) At the end of each state fiscal year, on the written
request of a state agency, the comptroller shall deposit to the
account the unexpended balance of any money appropriated to the
agency for that state fiscal year that is budgeted by the agency for
information technology services or cybersecurity purposes. A state
agency may request money from the account from the board at any time
for a qualifying information technology modernization project.
This subsection does not apply to the unexpended balance of any
money appropriated to a state agency from federal funds or from a
fund created by the constitution of this state.
(i) The comptroller shall separately account for the amount
of money deposited to the account at the request of each state
agency under Subsection (h). Money deposited to the account under
Subsection (h) and any interest and other earnings on that money may
be provided only to the state agency for which the comptroller
deposited the money to the account and may be used by the agency
only for a qualifying information technology modernization
project.
(j) Any money deposited to the account at the request of a
state agency under Subsection (h) that is not requested by the
agency within two years from the date the money is deposited shall
be transferred by the comptroller to the general revenue fund to be
used in accordance with legislative appropriation.
(k) A state agency that receives money from the fund or the
account may collaborate with one or more other state agencies that
also receive money from the fund or the account to purchase
information technology systems that may be shared between the
agencies.
(l) The department and the comptroller may adopt rules to
implement and administer this section.
SECTION 18. Chapter 2054, Government Code, is amended by
adding Subchapter R to read as follows:
SUBCHAPTER R. INFORMATION RESOURCES OF GOVERNMENTAL ENTITIES
Sec. 2054.601. USE OF NEXT GENERATION TECHNOLOGY. Each
state agency and local government shall, in the administration of
the agency or local government, consider using next generation
technologies, including cryptocurrency, blockchain technology, and
artificial intelligence.
Sec. 2054.602. LIABILITY EXEMPTION. A person who in good
faith discloses to a state agency or other governmental entity
information regarding a potential security issue with respect to
the agency's or entity's information resources technologies is not
liable for any civil damages resulting from disclosing the
information unless the person stole, retained, or sold any data
obtained as a result of the security issue.
Sec. 2054.603. MATCHING GRANTS FOR LOCAL CYBERSECURITY
PROJECTS. (a) In this section, "local governmental entity" means a
political subdivision of the state, including a:
(1) county;
(2) municipality;
(3) public school district; or
(4) special-purpose district or authority.
(b) Using available funds, the governor shall establish and
administer a cybersecurity matching grant program to award grants
to local governmental entities to defray the costs of cybersecurity
projects.
(c) A local governmental entity that applies to the office
of the governor for a matching grant under this section must
identify the source and amount of the local governmental entity's
matching funds. If the office approves a grant application, the
office shall award to the local governmental entity a grant amount
equal to 150 percent of the amount committed by the entity.
(d) The office may set a deadline for grant applications for
each state fiscal year.
(e) The governor shall adopt rules to implement the grant
program created under this section.
Sec. 2054.604. CYBERSECURITY THREAT ASSESSMENT. The
department shall develop a cybersecurity threat assessment for
local governments that provides best practices for preventing
cybersecurity attacks.
Sec. 2054.605. REPOSITORY FOR CYBERSECURITY EDUCATION AND
TRAINING. The department, in conjunction with institutions of
higher education as defined by Section 61.003, Education Code,
shall maintain and promote a centralized repository of information
on cybersecurity education and training that is available to any
governmental entity in this state.
SECTION 19. Subchapter B, Chapter 2155, Government Code, is
amended by adding Section 2155.092 to read as follows:
Sec. 2155.092. VENDOR STATEMENT FOR CERTAIN GOODS. (a)
This section does not apply to a good provided as part of a major
information resources project as defined by Section 2054.003.
(b) A vendor offering to sell to the state a good embedded
with a computing device capable of Internet connectivity must
include with each bid, offer, proposal, or other expression of
interest a written statement providing whether, at the time of
submitting the bid, offer, proposal, or expression of interest, the
vendor has actual knowledge of a confirmed security vulnerability
or defect in the device's hardware, software, or firmware that
would adversely affect the security of state data and is subject to
an applicable notification law.
(c) If a security vulnerability or defect is identified by a
vendor under Subsection (b), the contracting state agency may
request additional information in order to assess:
(1) the potential impact of the vulnerability or
defect on the agency's planned use of the device; and
(2) whether a security patch or other means of
mitigation is currently available or expected within a specific
period of time.
SECTION 20. The heading to Section 2157.007, Government
Code, is amended to read as follows:
Sec. 2157.007. [CONSIDERATION OF] CLOUD COMPUTING SERVICE
[PURCHASE].
SECTION 21. Section 2157.007, Government Code, is amended
by amending Subsections (a) and (b) and adding Subsections (b-1),
(b-2), and (f) to read as follows:
(a) In this section:
(1) "Cloud computing service" has the meaning assigned
by Special Publication 800-145 issued by the United States
Department of Commerce National Institute of Standards and
Technology, as the definition existed on January 1, 2015.
(2) "Major information resources project" has the
meaning assigned by Section 2054.003.
(b) Except as provided by Subsection (b-1), a [A] state
agency shall ensure [consider cloud computing service options,
including any security benefits and cost savings associated with
purchasing those service options from a cloud computing service
provider and from a statewide technology center established by the
department], when making purchases for an automated information
system or a major information resources project, that the system or
project is capable of being deployed and run on cloud computing
services [under Section 2054.118].
(b-1) When making a purchase for an automated information
system or a major information resources project, a state agency may
determine that, due to integration limitations with legacy systems,
security risks, costs, or other relevant considerations, the agency
is unable to purchase a system or project capable of being deployed
and run on cloud computing services.
(b-2) At least 14 days before the date a state agency
solicits bids, proposals, offers, or other applicable expressions
of interest for a purchase described by Subsection (b-1), the
agency shall submit to the Legislative Budget Board for the
purchase of an automated information system or to the quality
assurance team as defined by Section 2054.003 for the purchase of a
major information resources project a report that describes the
purchase and the agency's reasoning for making the purchase.
(f) The department shall periodically review guidelines on
state agency information that may be stored by a cloud computing or
other storage service and the cloud computing or other storage
services available to state agencies for that storage to ensure
that an agency purchasing a major information resources project
selects the most affordable, secure, and efficient cloud computing
or other storage service available to the agency. The guidelines
must include appropriate privacy and security standards that, at a
minimum, require a vendor who offers cloud computing or other
storage services or other software, applications, online services,
or information technology solutions to any state agency to
demonstrate that data provided by the state to the vendor will be
maintained in compliance with all applicable state and federal laws
and rules.
SECTION 22. Section 205.010(b), Local Government Code, is
amended to read as follows:
(b) A local government that owns, licenses, or maintains
computerized data that includes sensitive personal information
shall comply, in the event of a breach of system security, with the
notification requirements of:
(1) Section 364.0053;
(2) Section 364.0102; and
(3) Section 521.053, Business & Commerce Code, to the
same extent as a person who conducts business in this state.
SECTION 23. Subtitle C, Title 11, Local Government Code, is
amended by adding Chapter 364 to read as follows:
CHAPTER 364. LOCAL GOVERNMENT CYBERSECURITY AND EMERGENCY PLANNING
AND RESPONSE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 364.0001. DEFINITIONS. In this chapter:
(1) "Breach of system security" has the meaning
assigned by Section 521.053, Business & Commerce Code.
(2) "Cybersecurity coordinator" means the state
cybersecurity coordinator designated under Section 2054.511,
Government Code.
(3) "Cybersecurity council" means the council
established by the cybersecurity coordinator under Section
2054.512, Government Code.
(4) "Sensitive personal information" has the meaning
assigned by Section 521.002, Business & Commerce Code.
SUBCHAPTER B. REGIONAL INFORMATION SHARING AND ANALYSIS CENTERS
Sec. 364.0051. ESTABLISHMENT. (a) The cybersecurity
coordinator shall provide for the establishment and operation of
not more than 20 regional information sharing and analysis centers.
(b) Regional information sharing and analysis centers shall
be located throughout the state so that the boundaries for each
center are coextensive with the regional education service centers
established under Chapter 8, Education Code.
Sec. 364.0052. MEMBERSHIP. Each municipality with a
population of more than 25,000 shall join the regional information
sharing and analysis center in which the municipality is
predominantly located. Any other political subdivision may join
the regional information sharing and analysis center in which the
political subdivision is predominantly located.
Sec. 364.0053. SECURITY BREACH NOTIFICATION. (a) Not
later than 48 hours after a political subdivision discovers a
breach or suspected breach of system security or an unauthorized
exposure of sensitive personal information, the political
subdivision shall notify the regional information sharing and
analysis center of the breach. The notification must describe the
breach, suspected breach, or unauthorized exposure.
(b) A regional information sharing and analysis center
shall report to the Department of Information Resources any breach
of system security reported by a political subdivision in which the
person responsible for the breach:
(1) obtained or modified specific critical or
sensitive personal information;
(2) established access to the political subdivision's
information systems or infrastructure; or
(3) undermined, severely disrupted, or destroyed a
core service, program, or function of the political subdivision, or
placed the person in a position to do so in the future.
Sec. 364.0054. RULEMAKING. The cybersecurity coordinator
may adopt rules necessary to implement this subchapter.
SUBCHAPTER C. EMERGENCY PLANNING AND RESPONSE
Sec. 364.0101. MULTIHAZARD EMERGENCY OPERATIONS PLAN;
SAFETY AND SECURITY AUDIT. (a) This section applies to a
municipality or county with a population of more than 100,000.
(b) Each municipality and county shall adopt and implement a
multihazard emergency operations plan for use in the municipality's
and county's facilities. The plan must address mitigation,
preparedness, response, and recovery as determined by the
cybersecurity council and the governor's office of homeland
security. The plan must provide for:
(1) municipal or county employee training in
responding to an emergency;
(2) measures to ensure coordination with the
Department of State Health Services, Department of Information
Resources, local emergency management agencies, law enforcement
agencies, local health departments, and fire departments in the
event of an emergency; and
(3) the implementation of a safety and security audit
as required by Subsection (c).
(c) At least once every three years, each municipality and
county shall conduct a safety and security audit of the
municipality's or county's information technology infrastructure.
To the extent possible, a municipality or county shall follow
safety and security audit procedures developed by the cybersecurity
council or a comparable public or private entity.
(d) A municipality or county shall report the results of the
safety and security audit conducted under Subsection (c):
(1) to the municipality's or county's governing body;
and
(2) in the manner required by the cybersecurity
council, to the cybersecurity council.
(e) Except as provided by Subsection (f), any document or
information collected, developed, or produced during a safety and
security audit conducted under Subsection (c) is not subject to
disclosure under Chapter 552, Government Code.
(f) A document relating to a municipality's or county's
multihazard emergency operations plan is subject to disclosure if
the document enables a person to:
(1) verify that the municipality or county has
established a plan and determine the agencies involved in the
development of the plan and the agencies coordinating with the
municipality or county to respond to an emergency;
(2) verify that the municipality's or county's plan
was reviewed within the last 12 months and determine the specific
review dates;
(3) verify that the plan addresses the phases of
emergency management under Subsection (b);
(4) verify that municipal or county employees have
been trained to respond to an emergency and determine the types of
training, the number of employees trained, and the person
conducting the training;
(5) verify that the municipality or county has
completed a safety and security audit under Subsection (c) and
determine the date the audit was conducted, the person conducting
the audit, and the date the municipality or county presented the
results of the audit to the municipality's or county's governing
body; and
(6) verify that the municipality or county has
addressed any recommendations by the municipality's or county's
governing body for improvement of the plan and determine the
municipality's or county's progress within the last 12 months.
Sec. 364.0102. RANSOMWARE PAYMENT. (a) In this section,
"ransomware" has the meaning assigned by Section 33.023, Penal
Code.
(b) Not later than 48 hours after the time a political
subdivision makes a ransomware payment, the political subdivision
shall notify the cybersecurity coordinator of the payment.
SECTION 24. Section 2054.513, Government Code, is repealed.
SECTION 25. The Department of Information Resources shall
conduct a study on the types of objects embedded with computing
devices that are connected to the Internet that are purchased
through the department. The Department of Information Resources
shall submit a report on the study to the legislature not later than
December 31, 2020.
SECTION 26. (a) The lieutenant governor shall establish a
Senate Select Committee on Cybersecurity and the speaker of the
house of representatives shall establish a House Select Committee
on Cybersecurity to, jointly or separately, study:
(1) cybersecurity in this state;
(2) the information security plans of each state
agency;
(3) the risks and vulnerabilities of state agency
cybersecurity; and
(4) information technology procurement.
(b) Not later than November 30, 2019:
(1) the lieutenant governor shall appoint five
senators to the Senate Select Committee on Cybersecurity, one of
whom shall be designated as chair; and
(2) the speaker of the house of representatives shall
appoint five state representatives to the House Select Committee on
Cybersecurity, one of whom shall be designated as chair.
(c) The committees established under this section shall
convene separately at the call of the chair of the respective
committees, or jointly at the call of both chairs. In joint
meetings, the chairs of each committee shall act as joint chairs.
(d) Following consideration of the issues listed in
Subsection (a) of this section, the committees established under
this section shall jointly adopt recommendations on state
cybersecurity and report in writing to the legislature any findings
and adopted recommendations not later than January 12, 2021.
(e) This section expires September 1, 2021.
SECTION 27. As soon as practicable after the effective date
of this Act, the governor shall appoint a chief innovation officer
as required by Section 401.106, Government Code, as added by this
Act.
SECTION 28. (a) An official publisher in the executive
branch of state government shall comply with the applicable
provisions of Subchapter E, Chapter 2051, Government Code, as added
by this Act, in accordance with an implementation plan developed
under Subsection (b) of this section.
(b) The Texas State Library and Archives Commission and an
official publisher in the executive branch of state government are
jointly responsible for developing an implementation plan for the
applicable provisions of Subchapter E, Chapter 2051, Government
Code, as added by this Act. The implementation plan must:
(1) for each applicable type of legal material defined
by Subchapter E, Chapter 2051, Government Code, as added by this
Act, advise as to the method by which the legal material may be
authenticated, preserved, and made available on a permanent basis;
and
(2) establish a timeline for the official publisher to
comply with Sections 2051.154, 2051.155, 2051.157, and 2051.158,
Government Code, as added by this Act.
(c) The implementation plan developed under Subsection (b)
of this section may provide for compliance by an official publisher
in the executive branch of state government with Sections 2051.154,
2051.155, 2051.157, and 2051.158, Government Code, as added by this
Act, to be phased in over a period of time.
(d) The Texas State Library and Archives Commission shall
provide the implementation plan developed under Subsection (b) of
this section to the legislature not later than September 1, 2020.
SECTION 29. (a) An official publisher in the legislative
branch of state government shall comply with the applicable
provisions of Subchapter E, Chapter 2051, Government Code, as added
by this Act, in accordance with an implementation plan developed
under Subsection (b) of this section.
(b) An official publisher in the legislative branch of state
government, in consultation with the lieutenant governor, the
speaker of the house of representatives, the Senate Committee on
Administration, and the House Committee on Administration, shall
develop an implementation plan for the applicable provisions of
Subchapter E, Chapter 2051, Government Code, as added by this Act.
The implementation plan must:
(1) for each applicable type of legal material defined
by Subchapter E, Chapter 2051, Government Code, as added by this
Act, recommend the method by which the legal material may be
authenticated, preserved, and made available on a permanent basis;
and
(2) establish a timeline for the official publisher to
comply with Sections 2051.154, 2051.155, 2051.157, and 2051.158,
Government Code, as added by this Act.
(c) The implementation plan developed under Subsection (b)
of this section may provide for compliance by an official publisher
in the legislative branch of state government with Sections
2051.154, 2051.155, 2051.157, and 2051.158, Government Code, as
added by this Act, to be phased in over a period of time.
(d) An official publisher in the legislative branch of state
government shall provide the implementation plan developed under
Subsection (b) of this section to the lieutenant governor and
speaker of the house of representatives not later than September 1,
2020.
SECTION 30. Section 2054.139, Government Code, as added by
this Act, requiring a new employee of a state agency to complete
cybersecurity training, applies only to an employee who begins
employment on or after the effective date of this Act.
SECTION 31. Section 2155.092, Government Code, as added by
this Act, applies only in relation to a contract for which a state
agency first advertises or otherwise solicits bids, offers,
proposals, or other expressions of interest on or after the
effective date of this Act.
SECTION 32. Section 2157.007, Government Code, as amended
by this Act, applies only with respect to a purchase made by a state
agency on or after the effective date of this Act. A purchase made
before the effective date of this Act is governed by the law in
effect on the date the purchase was made, and the former law is
continued in effect for that purpose.
SECTION 33. If before implementing any provision of this
Act a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
SECTION 34. This Act takes effect September 1, 2019.