Texas 2023 88th Regular

Texas Senate Bill SB1204 House Committee Report / Bill

Filed 05/17/2023

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                    By: Paxton, et al. S.B. No. 1204
 (Capriglione)


 A BILL TO BE ENTITLED
 AN ACT
 relating to state and local government information technology and
 information security.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 2054.003, Government Code, is amended by
 adding Subdivisions (11) and (11-a) to read as follows:
 (11)  "Peer-to-peer payment" means a transfer of funds
 using a peer-to-peer payment system.
 (11-a)  "Peer-to-peer payment system" means a digital
 non-credit card system used for transferring funds from one party
 to another.
 SECTION 2.  The heading to Section 2054.0594, Government
 Code, is amended to read as follows:
 Sec. 2054.0594.  INFORMATION SHARING AND ANALYSIS
 ORGANIZATIONS [ORGANIZATION].
 SECTION 3.  Section 2054.0594, Government Code, is amended
 by amending Subsections (a), (b), and (c) and adding Subsection
 (a-1) to read as follows:
 (a)  The department shall establish an intrastate
 information sharing and analysis organization to provide a forum
 for state agencies, local governments, public and private
 institutions of higher education, and [the] private sector entities
 in this state to share information regarding cybersecurity threats,
 best practices, and remediation strategies.
 (a-1)  The department may establish an interstate
 information sharing and analysis organization to provide a forum
 for states to share information regarding cybersecurity threats,
 best practices, and remediation strategies.
 (b)  The department shall provide administrative support to
 each [the] information sharing and analysis organization
 established under this section.
 (c)  A participant in an [the] information sharing and
 analysis organization established under this section shall assert
 any exception available under state or federal law, including
 Section 552.139, in response to a request for public disclosure of
 information shared through the organization. Section 552.007 does
 not apply to information described by this subsection.
 SECTION 4.  Section 2054.060, Government Code, is amended by
 adding Subsection (a-1) to read as follows:
 (a-1)  Unless expressly prohibited by other law or a rule
 adopted by the state agency, a state agency shall accept a digital
 signature included in any communication or payment electronically
 delivered to the state agency.
 SECTION 5.  The heading to Section 2054.068, Government
 Code, is amended to read as follows:
 Sec. 2054.068.  STATE AGENCY INFORMATION TECHNOLOGY
 INFRASTRUCTURE: INFORMATION SECURITY RATING; AUDIT; REPORT.
 SECTION 6.  Section 2054.068, Government Code, is amended by
 amending Subsections (b), (c), and (d) and adding Subsections
 (c-1), (c-2), (c-3), (c-4), (e-1), (e-2), and (e-3) to read as
 follows:
 (b)  The department shall collect from each state agency
 information on the status and condition of the agency's information
 technology infrastructure, including [information regarding]:
 (1)  information on the agency's information security
 program;
 (2)  an inventory of the agency's servers, mainframes,
 cloud services, and other information technology equipment;
 (3)  identification information for [of] vendors that
 operate and manage the agency's information technology
 infrastructure; [and]
 (4)  the results of the information security assessment
 required by Section 2054.515; and
 (5)  any additional related information requested by
 the department.
 (c)  A state agency shall provide the information required by
 Subsection (b) to the department not later than June 1 of each
 even-numbered year [according to a schedule determined by the
 department].
 (c-1)  The department shall assign to each state agency,
 other than an institution of higher education, one of the following
 information security ratings based on the agency's information
 security risk profile:
 (1)  above average;
 (2)  average; or
 (3)  below average.
 (c-2)  In assigning an information security rating to a state
 agency under Subsection (c-1), the department shall consider:
 (1)  the information the agency provides under
 Subsection (b);
 (2)  the agency's comprehensive information security
 risk position relative to the agency's risk environment; and
 (3)  any additional document or information the
 department requests from the agency.
 (c-3)  The department:
 (1)  shall develop options and make recommendations for
 improvements in the information security maturity of any state
 agency assigned an information security rating of below average
 under Subsection (c-1); and
 (2)  may assist any state agency in determining whether
 additional security measures would increase the agency's
 information security maturity.
 (c-4)  The department may audit the information security and
 technology of any state agency assigned an information security
 rating under Subsection (c-1) or contract with a vendor to perform
 the audit. The department shall make available on request by any
 person listed in Subsection (d) the results of an audit conducted
 under this subsection.
 (d)  Not later than November 15 of each even-numbered year,
 the department shall submit to the governor, chair of the house
 appropriations committee, chair of the senate finance committee,
 speaker of the house of representatives, lieutenant governor, and
 staff of the Legislative Budget Board:
 (1)  a consolidated report of the information submitted
 by state agencies under Subsection (b); and
 (2)  any department recommendations relevant to and
 necessary for improving this state's information technology
 infrastructure and information security.
 (e-1)  The department shall compile a summary of the
 consolidated report required under Subsection (d) and make the
 summary available to the public. The summary may not disclose any
 confidential information.
 (e-2)  The consolidated report required under Subsection (d)
 and all information a state agency submits to substantiate or
 otherwise related to the report are confidential and not subject to
 disclosure under Chapter 552. The state agency or the department
 may redact or withhold information as confidential under Chapter
 552 without requesting a decision from the attorney general under
 Subchapter G, Chapter 552.
 (e-3)  Following review of the consolidated report, the
 Legislative Budget Board may direct the department to select for
 participation in a statewide technology center established under
 Subchapter L any state agency assigned an information security
 rating under Subsection (c-1). The department shall notify each
 selected state agency of the agency's selection as required by
 Section 2054.385. The department is not required to conduct the
 cost and requirements analysis under Section 2054.384 for a state
 agency selected for participation under this subsection. This
 subsection expires September 1, 2027.
 SECTION 7.  Subchapter C, Chapter 2054, Government Code, is
 amended by adding Section 2054.0692 to read as follows:
 Sec. 2054.0692.  GUIDANCE ON USE OF DISTRIBUTED LEDGER
 TECHNOLOGY. (a) The department shall develop and disseminate
 guidance for the use of distributed ledger technology, including
 blockchain, among state agencies.
 (b)  The guidance must include a framework or model for
 deciding if distributed ledger technology is appropriate for
 meeting a state agency's needs. The guidance may include:
 (1)  examples of potential uses of distributed ledger
 technology by an agency;
 (2)  sample procurement and contractual language; and
 (3)  information on educational resources for agencies
 on distributed ledger technology.
 SECTION 8.  Section 2054.095(b), Government Code, is amended
 to read as follows:
 (b)  Except as otherwise modified by the Legislative Budget
 Board or the governor, instructions under Subsection (a) must
 require each state agency's strategic plan to include:
 (1)  a description of the agency's information
 resources management organizations, policies, and practices,
 including the extent to which the agency uses its project
 management practices, as defined by Section 2054.152;
 (2)  a description of how the agency's information
 resources programs support and promote its mission, goals, and
 objectives and the goals and policies of the state strategic plan
 for information resources; [and]
 (3)  a description of customer service technology,
 including telephone systems and websites, that improves customer
 service performance; and
 (4)  other planning components that the department may
 prescribe.
 SECTION 9.  Section 2054.1115, Government Code, is amended
 by amending Subsection (a) and adding Subsection (c) to read as
 follows:
 (a)  A state agency or local government that uses the state
 electronic Internet portal may use electronic payment methods,
 including the acceptance of peer-to-peer payments, credit cards,
 and debit cards, for:
 (1)  point-of-sale transactions, including:
 (A)  person-to-person transactions;
 (B)  transactions that use an automated process to
 facilitate a person-to-person transaction; and
 (C)  transactions completed by a person at an
 unattended self-standing computer station using an automated
 process;
 (2)  telephone transactions; or
 (3)  mail transactions.
 (c)  The department shall identify at least three commonly
 used peer-to-peer payment systems that provide for data privacy and
 financial security and post a list containing those systems in a
 conspicuous location on the department's Internet website. The
 department shall biennially review and, if necessary, update the
 list required under this subsection.
 SECTION 10.  Section 2054.136, Government Code, is amended
 to read as follows:
 Sec. 2054.136.  DESIGNATED INFORMATION SECURITY OFFICER.
 (a) Each state agency shall designate an information security
 officer who:
 (1)  reports to the agency's executive-level
 management;
 (2)  has authority over information security for the
 entire agency;
 (3)  possesses the training and experience required to
 perform the duties required by department rules; and
 (4)  to the extent feasible, has information security
 duties as the officer's primary duties.
 (b)  An employee designated under Subsection (a) may be
 designated to serve as a joint information security officer by two
 or more state agencies. The department must approve the joint
 designation.
 SECTION 11.  Subchapter L, Chapter 2054, Government Code, is
 amended by adding Section 2054.393 to read as follows:
 Sec. 2054.393.  MARKETING OF SERVICES. (a) Notwithstanding
 Section 2113.011 and subject to Subsection (b), the department may
 use appropriated money to market to state agencies and local
 governments shared information resources technology services
 offered by the department under this subchapter, including data
 center, disaster recovery, and cybersecurity services.
 (b)  An expenditure of money under this section must be
 approved by the executive director.
 SECTION 12.  The heading to Section 2054.515, Government
 Code, is amended to read as follows:
 Sec. 2054.515.  STATE AGENCY INFORMATION SECURITY
 ASSESSMENT [AND REPORT].
 SECTION 13.  Sections 2054.515(a), (c), and (d), Government
 Code, are amended 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].
 (c)  Each state agency shall complete the information
 security assessment in consultation with the department or the
 vendor the department selects and submit the results of the
 assessment to the department in accordance with Section 2054.068(b)
 [The department by rule shall establish the requirements for the
 information security assessment and report required by this
 section].
 (d)  All [The report and all] documentation related to the
 information security assessment is [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 14.  Section 2054.577(c), Government Code, is
 amended to read as follows:
 (c)  Money in the fund:
 (1)  may be used to improve and modernize state agency
 information resources, including legacy system projects and
 cybersecurity projects; [and]
 (2)  may be used to mitigate a breach or suspected
 breach of system security, as defined by Section 521.053, Business &
 Commerce Code, or the introduction of ransomware, as defined by
 Section 33.023, Penal Code, into a computer, computer network, or
 computer system at a state agency;
 (3)  may not be used to replace money appropriated to a
 state agency for the purposes of operating and maintaining state
 agency information resources or reduce the amount of money
 appropriated to a state agency for those purposes; and
 (4)  may not be used to pay a person who commits the
 offense of electronic data tampering punishable under Section
 33.023, Penal Code.
 SECTION 15.  Chapter 2056, Government Code, is amended by
 adding Section 2056.0023 to read as follows:
 Sec. 2056.0023.  INFORMATION TECHNOLOGY MODERNIZATION PLAN.
 (a) As part of the strategic plan required under Section 2056.002,
 a state agency shall include an information technology
 modernization plan that outlines the manner in which the agency
 intends to transition its information technology and data-related
 services and capabilities into a more modern, integrated, secure,
 and effective technological environment.
 (b)  The Department of Information Resources may provide a
 template for the information technology modernization plan
 required by this section.
 SECTION 16.  The following provisions are repealed:
 (1)  Section 2054.068(f), Government Code; and
 (2)  Section 2054.515(b), Government Code, as amended
 by Chapters 567 (S.B. 475) and 856 (S.B. 800), Acts of the 87th
 Legislature, Regular Session, 2021.
 SECTION 17.  The Department of Information Resources shall
 develop and disseminate the guidance and decision model required by
 Section 2054.0692, Government Code, as added by this Act, not later
 than December 1, 2023.
 SECTION 18.  This Act takes effect September 1, 2023.