Texas 2025 - 89th Regular

Texas House Bill HB150 Latest Draft

Bill / Engrossed Version Filed 04/16/2025

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                            By: Capriglione, Bonnen, Hefner, Lujan, H.B. No. 150
 Lopez of Bexar, et al.




 A BILL TO BE ENTITLED
 AN ACT
 relating to the establishment of the Texas Cyber Command as a
 component institution of The University of Texas System and the
 transfer to it of certain powers and duties of the Department of
 Information Resources.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle B, Title 10, Government Code, is
 amended by adding Chapter 2063 to read as follows:
 CHAPTER 2063. TEXAS CYBER COMMAND
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 2063.001.  DEFINITIONS. In this chapter:
 (1)  "Chief" means the chief of the Texas Cyber
 Command.
 (2)  "Command" means the Texas Cyber Command
 established under this chapter.
 (3)  "Covered entity" means a private entity operating
 critical infrastructure or a local government that the command
 contracts with in order to provide cybersecurity services under
 this chapter.
 (4)  "Critical infrastructure" means infrastructure in
 this state vital to the security, governance, public health and
 safety, economy, or morale of the state or the nation, including:
 (A)  chemical facilities;
 (B)  commercial facilities;
 (C)  communication facilities;
 (D)  manufacturing facilities;
 (E)  dams;
 (F)  defense industrial bases;
 (G)  emergency services systems;
 (H)  energy facilities;
 (I)  financial services systems;
 (J)  food and agriculture facilities;
 (K)  government facilities;
 (L)  health care and public health facilities;
 (M)  information technology and information
 technology systems;
 (N)  nuclear reactors, materials, and waste;
 (O)  transportation systems; or
 (P)  water and wastewater systems.
 (5)  "Cybersecurity" means the measures taken for a
 computer, computer network, computer system, or other technology
 infrastructure to protect against, respond to, and recover from
 unauthorized:
 (A)  use, access, disruption, modification, or
 destruction; or
 (B)  disclosure, modification, or destruction of
 information.
 (6)  "Cybersecurity incident" includes:
 (A)  a breach or suspected breach of system
 security as defined by Section 521.053, Business & Commerce Code;
 (B)  the introduction of ransomware, as defined by
 Section 33.023, Penal Code, into a computer, computer network, or
 computer system; or
 (C)  any other cybersecurity-related occurrence
 that jeopardizes information or an information system designated by
 command policy adopted under this chapter.
 (7)  "Department" means the Department of Information
 Resources.
 (8)  "Governmental entity" means a state agency.
 (9)  "Information resources" has the meaning assigned
 by Section 2054.003, Government Code.
 (10)  "Information resources technologies" has the
 meaning assigned by Section 2054.003.
 (11)  "Local government" has the meaning assigned by
 Section 2054.003.
 (12)  "Sensitive personal information" has the meaning
 assigned by Section 521.002, Business & Commerce Code.
 (13)  "State agency" means:
 (A)  a department, commission, board, office, or
 other agency that is in the executive branch of state government and
 that was created by the constitution or a statute;
 (B)  the supreme court, the court of criminal
 appeals, a court of appeals, a district court, or the Texas Judicial
 Council or another agency in the judicial branch of state
 government; or
 (C)  a university system or an institution of
 higher education as defined by Section 61.003, Education Code.
 Sec. 2063.002.  ORGANIZATION. (a) The Texas Cyber Command
 is a component of The University of Texas System and
 administratively attached to The University of Texas at San
 Antonio.
 (b)  The command is managed by a chief appointed by the
 governor and confirmed with the advice and consent of the senate.
 The chief serves at the pleasure of the governor and must possess
 professional training and knowledge relevant to the functions and
 duties of the command.
 (c)  The command shall employ other coordinating and
 planning officers and other personnel necessary to the performance
 of its functions.
 (d)  Under an agreement with the command, The University of
 Texas at San Antonio shall provide administrative support services
 for the command as necessary to carry out the purposes of this
 chapter.
 Sec. 2063.003.  ESTABLISHMENT AND PURPOSE. (a) The command
 is established to prevent and respond to cybersecurity incidents
 that affect governmental entities and critical infrastructure in
 this state.
 (b)  The command is responsible for cybersecurity for this
 state, including:
 (1)  developing tools to enhance cybersecurity
 defenses;
 (2)  facilitating education and training of a
 cybersecurity workforce;
 (3)  developing cyber threat intelligence, monitoring
 information systems to detect and warn entities of cyber attacks,
 proactively searching for cyber threats to critical infrastructure
 and state systems, developing and executing cybersecurity incident
 responses, and conducting digital forensics of cybersecurity
 incidents to support law enforcement and attribute the incidents;
 (4)  creating partnerships needed to effectively carry
 out the command's functions; and
 (5)  receiving all cybersecurity incident reports from
 state agencies and covered entities.
 Sec. 2063.004.  GENERAL POWERS AND DUTIES. (a) The command
 shall:
 (1)  promote public awareness of cybersecurity issues;
 (2)  develop cybersecurity best practices and minimum
 standards for governmental entities;
 (3)  develop and provide training to state agencies and
 covered entities on cybersecurity measures and awareness;
 (4)  administer the cybersecurity threat intelligence
 center under Section 2063.201;
 (5)  provide support to state agencies and covered
 entities experiencing a cybersecurity incident and respond to
 cybersecurity reports received under Subchapter D and other reports
 as appropriate;
 (6)  administer the digital forensics laboratory under
 Section 2063.203;
 (7)  administer a statewide portal for enterprise
 cybersecurity threat, risk, and incident management, and operate a
 cybersecurity hotline available for state agencies and covered
 entities 24 hours a day, seven days a week;
 (8)  collaborate with law enforcement agencies to
 provide training and support related to cybersecurity incidents;
 (9)  serve as a clearinghouse for information relating
 to all aspects of protecting the cybersecurity of governmental
 entities, including sharing appropriate intelligence and
 information with governmental entities, federal agencies, and
 covered entities;
 (10)  collaborate with the department to ensure
 information resources and information resources technologies
 obtained by the department meet the cybersecurity standards and
 requirements established under this chapter;
 (11)  offer cybersecurity resources to state agencies
 and covered entities as determined by the command;
 (12)  adopt policies to ensure state agencies implement
 sufficient cybersecurity measures to defend information resources,
 information resources technologies, and sensitive personal
 information maintained by the agencies; and
 (13)  collaborate with federal agencies to protect
 against, respond to, and recover from cybersecurity incidents.
 (b)  The command may:
 (1)  adopt and enforce rules necessary to carry out
 this chapter;
 (2)  adopt and use an official seal;
 (3)  establish ad hoc advisory committees as necessary
 to carry out the command's duties under this chapter;
 (4)  acquire and convey property or an interest in
 property;
 (5)  procure insurance and pay premiums on insurance of
 any type, in accounts, and from insurers as the command considers
 necessary and advisable to accomplish any of the command's duties;
 (6)  hold patents, copyrights, trademarks, or other
 evidence of protection or exclusivity issued under the laws of the
 United States, any state, or any nation and may enter into license
 agreements with any third parties for the receipt of fees,
 royalties, or other monetary or nonmonetary value; and
 (7)  solicit and accept gifts, grants, donations, or
 loans from and contract with any entity to accomplish the command's
 duties.
 (c)  Except as otherwise provided by this chapter, the
 command shall deposit money paid to the command under this chapter
 in the state treasury to the credit of the general revenue fund.
 Sec. 2063.005.  COST RECOVERY. The command shall recover
 the cost of providing direct technical assistance, training
 services, and other services to covered entities when reasonable
 and practical.
 Sec. 2063.007.  EMERGENCY PURCHASING. In the event the
 emergency response to a cybersecurity incident requires the command
 to purchase an item, the command is exempt from the requirements of
 Sections 2155.0755, 2155.083, and 2155.132(c) in making the
 purchase.
 Sec. 2063.008.  RULES. The chief may adopt rules necessary
 for carrying out the purposes of this chapter.
 Sec. 2063.009.  APPLICATION OF SUNSET ACT. The command is
 subject to Chapter 325 (Texas Sunset Act). Unless continued in
 existence as provided by that chapter, the command is abolished
 September 1, 2031.
 SUBCHAPTER B. MINIMUM STANDARDS AND TRAINING
 Sec. 2063.101.  BEST PRACTICES AND MINIMUM STANDARDS FOR
 CYBERSECURITY AND TRAINING. (a) The command shall develop and
 annually assess best practices and minimum standards for use by
 governmental entities to enhance the security of information
 resources in this state.
 (b)  The command shall establish and periodically assess
 mandatory cybersecurity training that must be completed by all
 information resources employees of state agencies. The command
 shall consult with the Information Technology Council for Higher
 Education established under Section 2054.121 regarding applying
 the training requirements to employees of institutions of higher
 education.
 (c)  Except as otherwise provided by this subsection, the
 command shall adopt policies to ensure governmental entities are
 complying with the requirements of this section. The command shall
 adopt policies that ensure that a person who is not a citizen of the
 United States may not be a member, employee, contractor, volunteer,
 or otherwise affiliated with the command or any entity or
 organization established or operated by the command under this
 chapter.
 SUBCHAPTER C.  CYBERSECURITY PREVENTION, RESPONSE, AND RECOVERY
 Sec. 2063.201.  CYBERSECURITY THREAT INTELLIGENCE CENTER.
 (a) In this section, "center" means the cybersecurity threat
 intelligence center established under this section.
 (b)  The command shall establish a cybersecurity threat
 intelligence center.  The center shall collaborate with federal
 cybersecurity intelligence and law enforcement agencies to achieve
 the purposes of this section.
 (c)  The center, in coordination with the digital forensics
 laboratory under Section 2063.203, shall:
 (1)  operate the information sharing and analysis
 organization established under Section 2063.204; and
 (2)  provide strategic guidance to regional security
 operations centers established under Subchapter G and the
 cybersecurity incident response unit under Section 2063.202 to
 assist governmental entities in responding to a cybersecurity
 incident.
 (d)  The chief shall employ a director for the center.
 Sec. 2063.202.  CYBERSECURITY INCIDENT RESPONSE UNIT. (a)
 The command shall establish a dedicated cybersecurity incident
 response unit to:
 (1)  detect and contain cybersecurity incidents in
 collaboration with the cybersecurity threat intelligence center
 under Section 2063.201;
 (2)  engage in threat neutralization as necessary and
 appropriate, including removing malware, disallowing unauthorized
 access, and patching vulnerabilities in information resources
 technologies;
 (3)  in collaboration with the digital forensics
 laboratory under Section 2063.203, undertake mitigation efforts if
 sensitive personal information is breached during a cybersecurity
 incident;
 (4)  loan resources to state agencies and covered
 entities to promote continuity of operations while the agency or
 entity restores the systems affected by a cybersecurity incident;
 (5)  assist in the restoration of information resources
 and information resources technologies after a cybersecurity
 incident and conduct post-incident monitoring;
 (6)  in collaboration with the cybersecurity threat
 intelligence center under Section 2063.201 and digital forensics
 laboratory under Section 2063.203, identify weaknesses, establish
 risk mitigation options and effective vulnerability-reduction
 strategies, and make recommendations to state agencies and covered
 entities that have been the target of a cybersecurity attack or have
 experienced a cybersecurity incident in order to remediate
 identified cybersecurity vulnerabilities;
 (7)  in collaboration with the cybersecurity threat
 intelligence center under Section 2063.201, the digital forensics
 laboratory under Section 2063.203, the Texas Division of Emergency
 Management, and other state agencies, conduct, support, and
 participate in cyber-related exercises; and
 (8)  undertake any other activities necessary to carry
 out the duties described by this subsection.
 (b)  The chief shall employ a director for the cybersecurity
 incident response unit.
 Sec. 2063.203.  DIGITAL FORENSICS LABORATORY. (a) The
 command shall establish a digital forensics laboratory to:
 (1)  in collaboration with the cybersecurity incident
 response unit under Section 2063.202, develop procedures to:
 (A)  preserve evidence of a cybersecurity
 incident, including logs and communication;
 (B)  document chains of custody; and
 (C)  timely notify and maintain contact with the
 appropriate law enforcement agencies investigating a cybersecurity
 incident;
 (2)  develop and share with relevant state agencies and
 covered entities cyber threat hunting tools and procedures to
 assist in identifying indicators of a compromise in the
 cybersecurity of state information systems and non-state
 information systems, as appropriate, for proactive discovery of
 latent intrusions;
 (3)  conduct analyses of causes of cybersecurity
 incidents and of remediation options;
 (4)  conduct assessments of the scope of harm caused by
 cybersecurity incidents, including data loss, compromised systems,
 and system disruptions;
 (5)  provide information and training to state agencies
 and covered entities on producing reports required by regulatory
 and auditing bodies;
 (6)  in collaboration with the Department of Public
 Safety, the Texas Military Department, the office of the attorney
 general, and other state agencies, provide forensic analysis of a
 cybersecurity incident to support an investigation, attribution
 process, or other law enforcement or judicial action; and
 (7)  undertake any other activities necessary to carry
 out the duties described by this subsection.
 (b)  The chief shall employ a director for the digital
 forensics laboratory.
 Sec. 2063.205.  POLICIES. The command shall adopt policies
 and procedures necessary to enable the entities established in this
 subchapter to carry out their respective duties and purposes.
 SUBCHAPTER E. CYBERSECURITY PREPARATION AND PLANNING
 Sec. 2063.404.  ONGOING INFORMATION TRANSMISSIONS.
 Information received from state agencies by the department under
 Section 2054.069 shall be transmitted by the department to the
 command on an ongoing basis.
 SECTION 2.  Section 2054.510, Government Code, is
 transferred to Subchapter A, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.0025, Government
 Code, and amended to read as follows:
 Sec. 2063.0025 [2054.510].  COMMAND CHIEF [INFORMATION
 SECURITY OFFICER]. (a)  In this section, "state cybersecurity
 [information security] program" means the policies, standards,
 procedures, elements, structure, strategies, objectives, plans,
 metrics, reports, services, and resources that establish the
 cybersecurity [information resources security] function for this
 state.
 (b)  The chief directs the day-to-day operations and
 policies of the command and oversees and is responsible for all
 functions and duties of the command.  [The executive director,
 using existing funds, shall employ a chief information security
 officer.]
 (c)  The chief [information security officer] shall oversee
 cybersecurity matters for this state including:
 (1)  implementing the duties described by Section
 2063.004 [2054.059];
 (2)  [responding to reports received under Section
 2054.1125;
 [(3)]  developing a statewide cybersecurity
 [information security] framework;
 (3) [(4)]  overseeing the development of cybersecurity
 [statewide information security] policies and standards;
 (4) [(5)]  collaborating with [state agencies, local]
 governmental entities[,] and other entities operating or
 exercising control over state information systems or
 state-controlled data critical to strengthen this state's
 cybersecurity and information security policies, standards, and
 guidelines;
 (5) [(6)]  overseeing the implementation of the
 policies, standards, and requirements [guidelines] developed under
 this chapter [Subdivisions (3) and (4)];
 (6) [(7)]  providing cybersecurity [information
 security] leadership, strategic direction, and coordination for
 the state cybersecurity [information security] program;
 (7) [(8)]  providing strategic direction to:
 (A)  the network security center established
 under Section 2059.101; and
 (B)  regional security operations [statewide
 technology] centers operated under Subchapter G [L]; and
 (8) [(9)]  overseeing the preparation and submission
 of the report described by Section 2063.301 [2054.0591].
 SECTION 3.  Section 2054.0592, Government Code, is
 transferred to Subchapter A, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.006, Government
 Code, and amended to read as follows:
 Sec. 2063.006 [2054.0592].  CYBERSECURITY EMERGENCY
 FUNDING. If a cybersecurity event creates a need for emergency
 funding, the command [department] may request that the governor or
 Legislative Budget Board make a proposal under Chapter 317 to
 provide funding to manage the operational and financial impacts
 from the cybersecurity event.
 SECTION 4.  Section 2054.519, Government Code, is
 transferred to Subchapter B, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.102, Government
 Code, and amended to read as follows:
 Sec. 2063.102 [2054.519].  STATE CERTIFIED CYBERSECURITY
 TRAINING PROGRAMS. (a) The command [department], in consultation
 with the cybersecurity council established under Section 2063.406
 [2054.512] and industry stakeholders, shall annually:
 (1)  certify at least five cybersecurity training
 programs for state and local government employees; and
 (2)  update standards for maintenance of certification
 by the cybersecurity training programs under this section.
 (b)  To be certified under Subsection (a), a cybersecurity
 training program must:
 (1)  focus on forming appropriate cybersecurity
 [information security] habits and procedures that protect
 information resources; and
 (2)  teach best practices and minimum standards
 established under this subchapter [for detecting, assessing,
 reporting, and addressing information security threats].
 (c)  The command [department] may identify and certify under
 Subsection (a) training programs provided by state agencies and
 local governments that satisfy the training requirements described
 by Subsection (b).
 (d)  The command [department] may contract with an
 independent third party to certify cybersecurity training programs
 under this section.
 (e)  The command [department] shall annually publish on the
 command's [department's] Internet website the list of cybersecurity
 training programs certified under this section.
 SECTION 5.  Section 2054.5191, Government Code, is
 transferred to Subchapter B, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.103, Government
 Code, and amended to read as follows:
 Sec. 2063.103 [2054.5191].  CYBERSECURITY TRAINING REQUIRED
 [: CERTAIN EMPLOYEES AND OFFICIALS].  (a)  Each elected or appointed
 official and employee of a governmental entity who has access to the
 entity's information resources or information resources
 technologies [state agency shall identify state employees who use a
 computer to complete at least 25 percent of the employee's required
 duties.  At least once each year, an employee identified by the
 state agency and each elected or appointed officer of the agency]
 shall annually complete a cybersecurity training program certified
 under Section 2063.102 [2054.519].
 (b)  [(a-1)  At least once each year, a local government
 shall:
 [(1)  identify local government employees and elected
 and appointed officials who have access to a local government
 computer system or database and use a computer to perform at least
 25 percent of the employee's or official's required duties; and
 [(2)  require the employees and officials identified
 under Subdivision (1) to complete a cybersecurity training program
 certified under Section 2054.519.
 [(a-2)]  The governing body of a governmental entity [local
 government] or the governing body's designee may deny access to the
 governmental entity's information resources or information
 resources technologies [local government's computer system or
 database] to an employee or official [individual described by
 Subsection (a-1)(1)] who [the governing body or the governing
 body's designee determines] is noncompliant with the requirements
 of Subsection (a) [(a-1)(2)].
 (c) [(b)]  The governing body of a local government may
 select the most appropriate cybersecurity training program
 certified under Section 2063.102 [2054.519] for employees and
 officials of the local government to complete.  The governing body
 shall:
 (1)  verify and report on the completion of a
 cybersecurity training program by employees and officials of the
 local government to the command [department]; and
 (2)  require periodic audits to ensure compliance with
 this section.
 (d) [(c)]  A state agency may select the most appropriate
 cybersecurity training program certified under Section 2063.102
 [2054.519] for employees and officials of the state agency.  The
 executive head of each state agency shall verify completion of a
 cybersecurity training program by employees and officials of the
 state agency in a manner specified by the command [department].
 (e) [(d)]  The executive head of each state agency shall
 periodically require an internal review of the agency to ensure
 compliance with this section.
 (f) [(e)]  The command [department] shall develop a form for
 use by governmental entities [state agencies and local governments]
 in verifying completion of cybersecurity training program
 requirements under this section.  The form must allow the state
 agency and local government to indicate the percentage of employee
 and official completion.
 (g) [(f)]  The requirements of Subsection [Subsections] (a)
 [and (a-1)] do not apply to employees and officials who have been:
 (1)  granted military leave;
 (2)  granted leave under the federal Family and Medical
 Leave Act of 1993 (29 U.S.C. Section 2601 et seq.);
 (3)  granted leave related to a sickness or disability
 covered by workers' compensation benefits, if that employee or
 official no longer has access to the governmental entity's
 information resources or information resources technologies [state
 agency's or local government's database and systems];
 (4)  granted any other type of extended leave or
 authorization to work from an alternative work site if that
 employee or official no longer has access to the governmental
 entity's information resources or information resources
 technologies [state agency's or local government's database and
 systems]; or
 (5)  denied access to a governmental entity's
 information resources or information resources technologies [local
 government's computer system or database by the governing body of
 the local government or the governing body's designee] under
 Subsection (b) [(a-2)] for noncompliance with the requirements of
 Subsection (a) [(a-1)(2)].
 SECTION 6.  Section 2054.5192, Government Code, is
 transferred to Subchapter B, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.104, Government
 Code, and amended to read as follows:
 Sec. 2063.104  [2054.5192].  CYBERSECURITY TRAINING
 REQUIRED: CERTAIN STATE CONTRACTORS.  (a)  In this section,
 "contractor" includes a subcontractor, officer, or employee of the
 contractor.
 (b)  A state agency shall require any contractor who has
 access to a state computer system or database to complete a
 cybersecurity training program certified under Section 2063.102
 [2054.519] as selected by the agency.
 (c)  The cybersecurity training program must be completed by
 a contractor during the term of the contract and during any renewal
 period.
 (d)  Required completion of a cybersecurity training program
 must be included in the terms of a contract awarded by a state
 agency to a contractor.
 (e)  A contractor required to complete a cybersecurity
 training program under this section shall verify completion of the
 program to the contracting state agency.  The person who oversees
 contract management for the agency shall:
 (1)  not later than August 31 of each year, report the
 contractor's completion to the command [department]; and
 (2)  periodically review agency contracts to ensure
 compliance with this section.
 SECTION 7.  Section 2054.0594, Government Code, is
 transferred to Subchapter C, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.204, Government
 Code, and amended to read as follows:
 Sec. 2063.204  [2054.0594].  INFORMATION SHARING AND
 ANALYSIS ORGANIZATION. (a)  The command [department] shall
 establish at least one [an] 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 to share information regarding cybersecurity
 threats, best practices, and remediation strategies.
 (b)  [The department shall provide administrative support to
 the information sharing and analysis organization.
 [(c)]  A participant in the information sharing and analysis
 organization 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.
 (c) [(d)]  The command [department] shall establish a
 framework for regional cybersecurity task forces [working groups]
 to execute mutual aid agreements that allow state agencies, local
 governments, regional planning commissions, public and private
 institutions of higher education, the private sector, the regional
 security operations centers under Subchapter G, and the
 cybersecurity incident response unit under Section 2063.202 [and
 the incident response team established under Subchapter N-2] to
 assist with responding to a cybersecurity incident [event] in this
 state.  A task force [working group] may be established within the
 geographic area of a regional planning commission established under
 Chapter 391, Local Government Code.  The task force [working group]
 may establish a list of available cybersecurity experts and share
 resources to assist in responding to the cybersecurity incident
 [event] and recovery from the incident [event].
 SECTION 8.  Chapter 2063, Government Code, as added by this
 Act, is amended by adding Subchapter D, and a heading is added to
 that subchapter to read as follows:
 SUBCHAPTER D.  REPORTING
 SECTION 9.  Sections 2054.0591, 2054.603, and 2054.077,
 Government Code, are transferred to Subchapter D, Chapter 2063,
 Government Code, as added by this Act, redesignated as Sections
 2063.301, 2063.302, and 2063.303, Government Code, respectively,
 and amended to read as follows:
 Sec. 2063.301  [2054.0591].  CYBERSECURITY REPORT.  (a)  Not
 later than November 15 of each even-numbered year, the command
 [department] shall submit to the governor, the lieutenant governor,
 the speaker of the house of representatives, and the standing
 committee of each house of the legislature with primary
 jurisdiction over state government operations a report identifying
 preventive and recovery efforts the state can undertake to improve
 cybersecurity in this state.  The report must include:
 (1)  an assessment of the resources available to
 address the operational and financial impacts of a cybersecurity
 event;
 (2)  a review of existing statutes regarding
 cybersecurity and information resources technologies; and
 (3)  recommendations for legislative action to
 increase the state's cybersecurity and protect against adverse
 impacts from a cybersecurity incident [event; and
 [(4)  an evaluation of a program that provides an
 information security officer to assist small state agencies and
 local governments that are unable to justify hiring a full-time
 information security officer].
 (b)  Not later than October 1 of each even-numbered year, the
 command shall submit a report to the Legislative Budget Board that
 prioritizes, for the purpose of receiving funding, state agency
 cybersecurity projects. Each state agency shall coordinate with the
 command to implement this subsection.
 (c) [(b)]  The command [department] or a recipient of a
 report under this section may redact or withhold information
 confidential under Chapter 552, including Section 552.139, or other
 state or federal law that is contained in the report in response to
 a request under Chapter 552 without the necessity of requesting a
 decision from the attorney general under Subchapter G, Chapter 552.
 The disclosure of information under this section is not a voluntary
 disclosure for purposes of Section 552.007.
 Sec. 2063.302 [2054.603].  CYBERSECURITY [SECURITY]
 INCIDENT NOTIFICATION BY STATE AGENCY OR LOCAL GOVERNMENT. (a)  [In
 this section:
 [(1)  "Security incident" means:
 [(A)  a breach or suspected breach of system
 security as defined by Section 521.053, Business & Commerce Code;
 and
 [(B)  the introduction of ransomware, as defined
 by Section 33.023, Penal Code, into a computer, computer network,
 or computer system.
 [(2)  "Sensitive personal information" has the meaning
 assigned by Section 521.002, Business & Commerce Code.
 [(b)]  A state agency or local government that owns,
 licenses, or maintains computerized data that includes sensitive
 personal information, confidential information, or information the
 disclosure of which is regulated by law shall, in the event of a
 cybersecurity [security] incident:
 (1)  comply with the notification requirements of
 Section 521.053, Business & Commerce Code, to the same extent as a
 person who conducts business in this state;
 (2)  not later than 48 hours after the discovery of the
 cybersecurity [security] incident, notify:
 (A)  the command [department], including the
 chief [information security officer]; or
 (B)  if the cybersecurity [security] incident
 involves election data, the secretary of state; and
 (3)  comply with all command [department] rules
 relating to reporting cybersecurity [security] incidents as
 required by this section.
 (b) [(c)]  Not later than the 10th business day after the
 date of the eradication, closure, and recovery from a cybersecurity
 [security] incident, a state agency or local government shall
 notify the command [department], including the chief [information
 security officer], of the details of the cybersecurity [security]
 incident and include in the notification an analysis of the cause of
 the cybersecurity [security] incident.
 (c) [(d)]  This section does not apply to a cybersecurity
 [security] incident that a local government is required to report
 to an independent organization certified by the Public Utility
 Commission of Texas under Section 39.151, Utilities Code.
 Sec. 2063.303 [2054.077].  VULNERABILITY REPORTS.  (a)  In
 this section, a term defined by Section 33.01, Penal Code, has the
 meaning assigned by that section.
 (b)  The information security officer of a state agency shall
 prepare or have prepared a report, including an executive summary
 of the findings of the biennial report, not later than June 1 of
 each even-numbered year, assessing the extent to which a computer,
 a computer program, a computer network, a computer system, a
 printer, an interface to a computer system, including mobile and
 peripheral devices, computer software, or data processing of the
 agency or of a contractor of the agency is vulnerable to
 unauthorized access or harm, including the extent to which the
 agency's or contractor's electronically stored information is
 vulnerable to alteration, damage, erasure, or inappropriate use.
 (c)  Except as provided by this section, a vulnerability
 report and any information or communication prepared or maintained
 for use in the preparation of a vulnerability report is
 confidential and is not subject to disclosure under Chapter 552.
 (d)  The information security officer shall provide an
 electronic copy of the vulnerability report on its completion to:
 (1)  the command [department];
 (2)  the state auditor;
 (3)  the agency's executive director;
 (4)  the agency's designated information resources
 manager; and
 (5)  any other information technology security
 oversight group specifically authorized by the legislature to
 receive the report.
 (e)  Separate from the executive summary described by
 Subsection (b), a state agency shall prepare a summary of the
 agency's vulnerability report that does not contain any information
 the release of which might compromise the security of the state
 agency's or state agency contractor's computers, computer programs,
 computer networks, computer systems, printers, interfaces to
 computer systems, including mobile and peripheral devices,
 computer software, data processing, or electronically stored
 information.  [The summary is available to the public on request.]
 SECTION 10.  Section 2054.136, Government Code, is
 transferred to Subchapter E, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.401, Government
 Code, and amended to read as follows:
 Sec. 2063.401  [2054.136].  DESIGNATED INFORMATION SECURITY
 OFFICER.  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
 ensure the agency complies with requirements and policies
 established by the command [perform the duties required by
 department rules]; and
 (4)  to the extent feasible, has information security
 duties as the officer's primary duties.
 SECTION 11.  Section 2054.518, Government Code, is
 transferred to Subchapter E, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.402, Government
 Code, and amended to read as follows:
 Sec. 2063.402  [2054.518].  CYBERSECURITY RISKS AND
 INCIDENTS.  (a)  The command [department] shall develop a plan to
 address cybersecurity risks and incidents in this state.  The
 command [department] may enter into an agreement with a national
 organization, including the National Cybersecurity Preparedness
 Consortium, to support the command's [department's] efforts in
 implementing the components of the plan for which the command
 [department] lacks resources to address internally.  The agreement
 may include provisions for:
 (1)  providing technical assistance services to
 support preparedness for and response to cybersecurity risks and
 incidents;
 (2)  conducting cybersecurity simulation exercises for
 state agencies to encourage coordination in defending against and
 responding to cybersecurity risks and incidents;
 (3)  assisting state agencies in developing
 cybersecurity information-sharing programs to disseminate
 information related to cybersecurity risks and incidents; and
 (4)  incorporating cybersecurity risk and incident
 prevention and response methods into existing state emergency
 plans, including continuity of operation plans and incident
 response plans.
 (b)  In implementing the provisions of the agreement
 prescribed by Subsection (a), the command [department] shall seek
 to prevent unnecessary duplication of existing programs or efforts
 of the command [department] or another state agency.
 (c) [(d)]  The command [department] shall consult with
 institutions of higher education in this state when appropriate
 based on an institution's expertise in addressing specific
 cybersecurity risks and incidents.
 SECTION 12.  Section 2054.133, Government Code, is
 transferred to Subchapter E, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.403, Government
 Code, and amended to read as follows:
 Sec. 2063.403  [2054.133].  INFORMATION SECURITY PLAN.  (a)
 Each state agency shall develop, and periodically update, an
 information security plan for protecting the security of the
 agency's information.
 (b)  In developing the plan, the state agency shall:
 (1)  consider any vulnerability report prepared under
 Section 2063.303 [2054.077] for the agency;
 (2)  incorporate the network security services
 provided by the department to the agency under Chapter 2059;
 (3)  identify and define the responsibilities of agency
 staff who produce, access, use, or serve as custodians of the
 agency's information;
 (4)  identify risk management and other measures taken
 to protect the agency's information from unauthorized access,
 disclosure, modification, or destruction;
 (5)  include:
 (A)  the best practices for information security
 developed by the command [department]; or
 (B)  if best practices are not applied, a written
 explanation of why the best practices are not sufficient for the
 agency's security; and
 (6)  omit from any written copies of the plan
 information that could expose vulnerabilities in the agency's
 network or online systems.
 (c)  Not later than June 1 of each even-numbered year, each
 state agency shall submit a copy of the agency's information
 security plan to the command [department].  Subject to available
 resources, the command [department] may select a portion of the
 submitted security plans to be assessed by the command [department]
 in accordance with command policies [department rules].
 (d)  Each state agency's information security plan is
 confidential and exempt from disclosure under Chapter 552.
 (e)  Each state agency shall include in the agency's
 information security plan a written document that is signed by the
 head of the agency, the chief financial officer, and each executive
 manager designated by the state agency and states that those
 persons have been made aware of the risks revealed during the
 preparation of the agency's information security plan.
 (f)  Not later than November 15 of each even-numbered year,
 the command [department] shall submit a written report to the
 governor, the lieutenant governor, the speaker of the house of
 representatives, and each standing committee of the legislature
 with primary jurisdiction over matters related to the command
 [department] evaluating information security for this state's
 information resources.  In preparing the report, the command
 [department] shall consider the information security plans
 submitted by state agencies under this section, any vulnerability
 reports submitted under Section 2063.303 [2054.077], and other
 available information regarding the security of this state's
 information resources.  The command [department] shall omit from
 any written copies of the report information that could expose
 specific vulnerabilities [in the security of this state's
 information resources].
 SECTION 13.  Section 2054.516, Government Code, is
 transferred to Subchapter E, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.405, Government
 Code, and amended to read as follows:
 Sec. 2063.405  [2054.516].  DATA SECURITY PLAN FOR ONLINE
 AND MOBILE APPLICATIONS.  (a)  Each state agency implementing an
 Internet website or mobile application that processes any sensitive
 personal or personally identifiable information or confidential
 information must:
 (1)  submit a biennial data security plan to the
 command [department] not later than June 1 of each even-numbered
 year to establish planned beta testing for the website or
 application; and
 (2)  subject the website or application to a
 vulnerability and penetration test and address any vulnerability
 identified in the test.
 (b)  The command [department] shall review each data
 security plan submitted under Subsection (a) and make any
 recommendations for changes to the plan to the state agency as soon
 as practicable after the command [department] reviews the plan.
 SECTION 14.  Section 2054.512, Government Code, is
 transferred to Subchapter E, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.406, Government
 Code, and amended to read as follows:
 Sec. 2063.406  [2054.512].  CYBERSECURITY COUNCIL.  (a)  The
 chief or the chief's designee [state cybersecurity coordinator]
 shall [establish and] lead a cybersecurity council that includes
 public and private sector leaders and cybersecurity practitioners
 to collaborate on matters of cybersecurity concerning this state.
 (b)  The cybersecurity council must include:
 (1)  one member who is an employee of the office of the
 governor;
 (2)  one member of the senate appointed by the
 lieutenant governor;
 (3)  one member of the house of representatives
 appointed by the speaker of the house of representatives;
 (4)  the director of [one member who is an employee of]
 the Elections Division of the Office of the Secretary of State;
 [and]
 (5)  one member who is an employee of the department;
 and
 (6)  additional members appointed by the chief [state
 cybersecurity coordinator], including representatives of
 institutions of higher education and private sector leaders.
 (c)  Members of the cybersecurity council serve staggered
 six-year terms, with as near as possible to one-third of the
 members' terms expiring February 1 of each odd-numbered year.
 (d)  In appointing representatives from institutions of
 higher education to the cybersecurity council, the chief [state
 cybersecurity coordinator] shall consider appointing members of
 the Information Technology Council for Higher Education.
 (e) [(d)]  The cybersecurity council shall:
 (1)  consider the costs and benefits of establishing a
 computer emergency readiness team to address cybersecurity
 incidents [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.
 (f) [(e)]  The chief, in collaboration with the
 cybersecurity council, shall provide recommendations to the
 legislature on any legislation necessary to implement
 cybersecurity best practices and remediation strategies for this
 state.
 SECTION 15.  Section 2054.514, Government Code, is
 transferred to Subchapter E, Chapter 2063, Government Code, as
 added by this Act, redesignated as Section 2063.407, Government
 Code, and amended to read as follows:
 Sec. 2063.407  [2054.514].  RECOMMENDATIONS.  The chief
 [state cybersecurity coordinator] may implement any portion, or all
 of the recommendations made by the cybersecurity council under
 Section 2063.406 [Cybersecurity, Education, and Economic
 Development Council under Subchapter N].
 SECTION 16.  Subchapter N-2, Chapter 2054, Government Code,
 is transferred to Chapter 2063, Government Code, as added by this
 Act, redesignated as Subchapter F, Chapter 2063, Government Code,
 and amended to read as follows:
 SUBCHAPTER F [N-2].  TEXAS VOLUNTEER INCIDENT RESPONSE TEAM
 Sec. 2063.501  [2054.52001].  DEFINITIONS.  In this
 subchapter:
 (1)  "Incident response team" means the Texas volunteer
 incident response team established under Section 2063.502
 [2054.52002].
 (2)  "Participating entity" means a state agency,
 including an institution of higher education, or a local government
 that receives assistance under this subchapter during a
 cybersecurity incident [event].
 (3)  "Volunteer" means an individual who provides rapid
 response assistance during a cybersecurity incident [event] under
 this subchapter.
 Sec. 2063.502 [2054.52002].  ESTABLISHMENT OF TEXAS
 VOLUNTEER INCIDENT RESPONSE TEAM.  (a)  The command [department]
 shall establish the Texas volunteer incident response team to
 provide rapid response assistance to a participating entity under
 the command's [department's] direction during a cybersecurity
 incident [event].
 (b)  The command [department] shall prescribe eligibility
 criteria for participation as a volunteer member of the incident
 response team, including a requirement that each volunteer have
 expertise in addressing cybersecurity incidents [events].
 Sec. 2063.503 [2054.52003].  CONTRACT WITH VOLUNTEERS.  The
 command [department] shall enter into a contract with each
 volunteer the command [department] approves to provide rapid
 response assistance under this subchapter.  The contract must
 require the volunteer to:
 (1)  acknowledge the confidentiality of information
 required by Section 2063.510 [2054.52010];
 (2)  protect all confidential information from
 disclosure;
 (3)  avoid conflicts of interest that might arise in a
 deployment under this subchapter;
 (4)  comply with command [department] security
 policies and procedures regarding information resources
 technologies;
 (5)  consent to background screening required by the
 command [department]; and
 (6)  attest to the volunteer's satisfaction of any
 eligibility criteria established by the command [department].
 Sec. 2063.504 [2054.52004].  VOLUNTEER QUALIFICATION.  (a)
 The command [department] shall require criminal history record
 information for each individual who accepts an invitation to become
 a volunteer.
 (b)  The command [department] may request other information
 relevant to the individual's qualification and fitness to serve as
 a volunteer.
 (c)  The command [department] has sole discretion to
 determine whether an individual is qualified to serve as a
 volunteer.
 Sec. 2063.505  [2054.52005].  DEPLOYMENT.  (a)  In response
 to a cybersecurity incident [event] that affects multiple
 participating entities or a declaration by the governor of a state
 of disaster caused by a cybersecurity event, the command
 [department] on request of a participating entity may deploy
 volunteers and provide rapid response assistance under the
 command's [department's] direction and the managed security
 services framework established under Section 2063.204(c)
 [2054.0594(d)] to assist with the incident [event].
 (b)  A volunteer may only accept a deployment under this
 subchapter in writing.  A volunteer may decline to accept a
 deployment for any reason.
 Sec. 2063.506 [2054.52006].  CYBERSECURITY COUNCIL
 DUTIES.  The cybersecurity council established under Section
 2063.406 [2054.512] shall review and make recommendations to the
 command [department] regarding the policies and procedures used by
 the command [department] to implement this subchapter.  The command
 [department] may consult with the council to implement and
 administer this subchapter.
 Sec. 2063.507 [2054.52007].  COMMAND [DEPARTMENT] POWERS
 AND DUTIES.  (a)  The command [department] shall:
 (1)  approve the incident response tools the incident
 response team may use in responding to a cybersecurity incident
 [event];
 (2)  establish the eligibility criteria an individual
 must meet to become a volunteer;
 (3)  develop and publish guidelines for operation of
 the incident response team, including the:
 (A)  standards and procedures the command
 [department] uses to determine whether an individual is eligible to
 serve as a volunteer;
 (B)  process for an individual to apply for and
 accept incident response team membership;
 (C)  requirements for a participating entity to
 receive assistance from the incident response team; and
 (D)  process for a participating entity to request
 and obtain the assistance of the incident response team; and
 (4)  adopt policies [rules] necessary to implement this
 subchapter.
 (b)  The command [department] may require a participating
 entity to enter into a contract as a condition for obtaining
 assistance from the incident response team.  [The contract must
 comply with the requirements of Chapters 771 and 791.]
 (c)  The command [department] may provide appropriate
 training to prospective and approved volunteers.
 (d)  In accordance with state law, the command [department]
 may provide compensation for actual and necessary travel and living
 expenses incurred by a volunteer on a deployment using money
 available for that purpose.
 (e)  The command [department] may establish a fee schedule
 for participating entities receiving incident response team
 assistance.  The amount of fees collected may not exceed the
 command's [department's] costs to operate the incident response
 team.
 Sec. 2063.508 [2054.52008].  STATUS OF VOLUNTEER;
 LIABILITY.  (a)  A volunteer is not an agent, employee, or
 independent contractor of this state for any purpose and has no
 authority to obligate this state to a third party.
 (b)  This state is not liable to a volunteer for personal
 injury or property damage sustained by the volunteer that arises
 from participation in the incident response team.
 Sec. 2063.509 [2054.52009].  CIVIL LIABILITY.  A volunteer
 who in good faith provides professional services in response to a
 cybersecurity incident [event] is not liable for civil damages as a
 result of the volunteer's acts or omissions in providing the
 services, except for wilful and wanton misconduct.  This immunity
 is limited to services provided during the time of deployment for a
 cybersecurity incident [event].
 Sec. 2063.510 [2054.52010].  CONFIDENTIAL INFORMATION.
 Information written, produced, collected, assembled, or maintained
 by the command [department], a participating entity, the
 cybersecurity council, or a volunteer in the implementation of this
 subchapter is confidential and not subject to disclosure under
 Chapter 552 if the information:
 (1)  contains the contact information for a volunteer;
 (2)  identifies or provides a means of identifying a
 person who may, as a result of disclosure of the information, become
 a victim of a cybersecurity incident [event];
 (3)  consists of a participating entity's cybersecurity
 plans or cybersecurity-related practices; or
 (4)  is obtained from a participating entity or from a
 participating entity's computer system in the course of providing
 assistance under this subchapter.
 SECTION 17.  Subchapter E, Chapter 2059, Government Code, is
 transferred to Chapter 2063, Government Code, as added by this Act,
 redesignated as Subchapter G, Chapter 2063, Government Code, and
 amended to read as follows:
 SUBCHAPTER G [E].  REGIONAL [NETWORK] SECURITY OPERATIONS CENTERS
 Sec. 2063.601 [2059.201].  ELIGIBLE PARTICIPATING ENTITIES.
 A state agency or an entity listed in Section 2059.058 is eligible
 to participate in cybersecurity support and network security
 provided by a regional [network] security operations center under
 this subchapter.
 Sec. 2063.602 [2059.202].  ESTABLISHMENT OF REGIONAL
 [NETWORK] SECURITY OPERATIONS CENTERS.  (a)  Subject to Subsection
 (b), the command [department] may establish regional [network]
 security operations centers, under the command's [department's]
 managed security services framework established by Section
 2063.204(c) [2054.0594(d)], to assist in providing cybersecurity
 support and network security to regional offices or locations for
 state agencies and other eligible entities that elect to
 participate in and receive services through the center.
 (b)  The command [department] may establish more than one
 regional [network] security operations center only if the command
 [department] determines the first center established by the command
 [department] successfully provides to state agencies and other
 eligible entities the services the center has contracted to
 provide.
 (c)  The command [department] shall enter into an
 interagency contract in accordance with Chapter 771 or an
 interlocal contract in accordance with Chapter 791, as appropriate,
 with an eligible participating entity that elects to participate in
 and receive services through a regional [network] security
 operations center.
 Sec. 2063.603 [2059.203].  REGIONAL [NETWORK] SECURITY
 OPERATIONS CENTER LOCATIONS AND PHYSICAL SECURITY.  (a)  In
 creating and operating a regional [network] security operations
 center, the command may [department shall] partner with another [a]
 university system or institution of higher education as defined by
 Section 61.003, Education Code, other than a public junior college.
 The system or institution shall:
 (1)  serve as an education partner with the command
 [department] for the regional [network] security operations
 center; and
 (2)  enter into an interagency contract with the
 command [department] in accordance with Chapter 771.
 (b)  In selecting the location for a regional [network]
 security operations center, the command [department] shall select a
 university system or institution of higher education that has
 supportive educational capabilities.
 (c)  A university system or institution of higher education
 selected to serve as a regional [network] security operations
 center shall control and monitor all entrances to and critical
 areas of the center to prevent unauthorized entry.  The system or
 institution shall restrict access to the center to only authorized
 individuals.
 (d)  A local law enforcement entity or any entity providing
 security for a regional [network] security operations center shall
 monitor security alarms at the regional [network] security
 operations center subject to the availability of that service.
 (e)  The command [department] and a university system or
 institution of higher education selected to serve as a regional
 [network] security operations center shall restrict operational
 information to only center personnel, except as provided by Chapter
 321.
 Sec. 2063.604 [2059.204].  REGIONAL [NETWORK] SECURITY
 OPERATIONS CENTERS SERVICES AND SUPPORT.  The command [department]
 may offer the following managed security services through a
 regional [network] security operations center:
 (1)  real-time cybersecurity [network security]
 monitoring to detect and respond to cybersecurity incidents
 [network security events] that may jeopardize this state and the
 residents of this state;
 (2)  alerts and guidance for defeating cybersecurity
 [network security] threats, including firewall configuration,
 installation, management, and monitoring, intelligence gathering,
 and protocol analysis;
 (3)  immediate response to counter unauthorized
 [network security] activity that exposes this state and the
 residents of this state to risk, including complete intrusion
 detection system installation, management, and monitoring for
 participating entities;
 (4)  development, coordination, and execution of
 statewide cybersecurity operations to isolate, contain, and
 mitigate the impact of cybersecurity [network security] incidents
 for participating entities; and
 (5)  cybersecurity educational services.
 Sec. 2063.605 [2059.205].  NETWORK SECURITY GUIDELINES AND
 STANDARD OPERATING PROCEDURES.  (a)  The command [department] shall
 adopt and provide to each regional [network] security operations
 center appropriate network security guidelines and standard
 operating procedures to ensure efficient operation of the center
 with a maximum return on the state's investment.
 (b)  The command [department] shall revise the standard
 operating procedures as necessary to confirm network security.
 (c)  Each eligible participating entity that elects to
 participate in a regional [network] security operations center
 shall comply with the network security guidelines and standard
 operating procedures.
 SECTION 18.  Section 325.011, Government Code, is amended to
 read as follows:
 Sec. 325.011.  CRITERIA FOR REVIEW.  The commission and its
 staff shall consider the following criteria in determining whether
 a public need exists for the continuation of a state agency or its
 advisory committees or for the performance of the functions of the
 agency or its advisory committees:
 (1)  the efficiency and effectiveness with which the
 agency or the advisory committee operates;
 (2)(A)  an identification of the mission, goals, and
 objectives intended for the agency or advisory committee and of the
 problem or need that the agency or advisory committee was intended
 to address; and
 (B)  the extent to which the mission, goals, and
 objectives have been achieved and the problem or need has been
 addressed;
 (3)(A)  an identification of any activities of the
 agency in addition to those granted by statute and of the authority
 for those activities; and
 (B)  the extent to which those activities are
 needed;
 (4)  an assessment of authority of the agency relating
 to fees, inspections, enforcement, and penalties;
 (5)  whether less restrictive or alternative methods of
 performing any function that the agency performs could adequately
 protect or provide service to the public;
 (6)  the extent to which the jurisdiction of the agency
 and the programs administered by the agency overlap or duplicate
 those of other agencies, the extent to which the agency coordinates
 with those agencies, and the extent to which the programs
 administered by the agency can be consolidated with the programs of
 other state agencies;
 (7)  the promptness and effectiveness with which the
 agency addresses complaints concerning entities or other persons
 affected by the agency, including an assessment of the agency's
 administrative hearings process;
 (8)  an assessment of the agency's rulemaking process
 and the extent to which the agency has encouraged participation by
 the public in making its rules and decisions and the extent to which
 the public participation has resulted in rules that benefit the
 public;
 (9)  the extent to which the agency has complied with:
 (A)  federal and state laws and applicable rules
 regarding equality of employment opportunity and the rights and
 privacy of individuals; and
 (B)  state law and applicable rules of any state
 agency regarding purchasing guidelines and programs for
 historically underutilized businesses;
 (10)  the extent to which the agency issues and
 enforces rules relating to potential conflicts of interest of its
 employees;
 (11)  the extent to which the agency complies with
 Chapters 551 and 552 and follows records management practices that
 enable the agency to respond efficiently to requests for public
 information;
 (12)  the effect of federal intervention or loss of
 federal funds if the agency is abolished;
 (13)  the extent to which the purpose and effectiveness
 of reporting requirements imposed on the agency justifies the
 continuation of the requirement; and
 (14)  an assessment of the agency's cybersecurity
 practices using confidential information available from the
 Department of Information Resources, the Texas Cyber Command, or
 any other appropriate state agency.
 SECTION 19.  Section 11.175(h-1), Education Code, is amended
 to read as follows:
 (h-1)  Notwithstanding Section 2063.103 [2054.5191],
 Government Code, only the district's cybersecurity coordinator is
 required to complete the cybersecurity training under that section
 on an annual basis.  Any other school district employee required to
 complete the cybersecurity training shall complete the training as
 determined by the district, in consultation with the district's
 cybersecurity coordinator.
 SECTION 20.  Section 38.307(e), Education Code, is amended
 to read as follows:
 (e)  The agency shall maintain the data collected by the task
 force and the work product of the task force in accordance with:
 (1)  the agency's information security plan under
 Section 2063.403 [2054.133], Government Code; and
 (2)  the agency's records retention schedule under
 Section 441.185, Government Code.
 SECTION 21.  Section 61.003(6), Education Code, is amended
 to read as follows:
 (6)  "Other agency of higher education" means The
 University of Texas System, System Administration; The University
 of Texas at El Paso Museum; Texas Epidemic Public Health Institute
 at The University of Texas Health Science Center at Houston; the
 Texas Cyber Command; The Texas A&M University System,
 Administrative and General Offices; Texas A&M AgriLife Research;
 Texas A&M AgriLife Extension Service; Rodent and Predatory Animal
 Control Service (a part of the Texas A&M AgriLife Extension
 Service); Texas A&M Engineering Experiment Station (including the
 Texas A&M Transportation Institute); Texas A&M Engineering
 Extension Service; Texas A&M Forest Service; Texas Division of
 Emergency Management; Texas Tech University Museum; Texas State
 University System, System Administration; Sam Houston Memorial
 Museum; Panhandle-Plains Historical Museum; Cotton Research
 Committee of Texas; Texas Water Resources Institute; Texas A&M
 Veterinary Medical Diagnostic Laboratory; and any other unit,
 division, institution, or agency which shall be so designated by
 statute or which may be established to operate as a component part
 of any public senior college or university, or which may be so
 classified as provided in this chapter.
 SECTION 22.  Section 65.02(a), Education Code, is amended to
 read as follows:
 (a)  The University of Texas System is composed of the
 following institutions and entities:
 (1)  The University of Texas at Arlington;
 (2)  The University of Texas at Austin;
 (3)  The University of Texas at Dallas;
 (4)  The University of Texas at El Paso;
 (5)  The University of Texas Permian Basin;
 (6)  The University of Texas at San Antonio;
 (7)  The University of Texas Southwestern Medical
 Center;
 (8)  The University of Texas Medical Branch at
 Galveston;
 (9)  The University of Texas Health Science Center at
 Houston;
 (10)  The University of Texas Health Science Center at
 San Antonio;
 (11)  The University of Texas M. D. Anderson Cancer
 Center;
 (12)  Stephen F. Austin State University, a member of
 The University of Texas System;
 (13)  The University of Texas at Tyler; [and]
 (14)  The University of Texas Rio Grande Valley; and
 (15)  the Texas Cyber Command (Chapter 2063, Government
 Code).
 SECTION 23.  Sections 772.012(b) and (c), Government Code,
 are amended to read as follows:
 (b)  To apply for a grant under this chapter, a local
 government must submit with the grant application a written
 certification of the local government's compliance with the
 cybersecurity training required by Section 2063.103 [2054.5191].
 (c)  On a determination by the criminal justice division
 established under Section 772.006 that a local government awarded a
 grant under this chapter has not complied with the cybersecurity
 training required by Section 2063.103 [2054.5191], the local
 government shall pay to this state an amount equal to the amount of
 the grant award.  A local government that is the subject of a
 determination described by this subsection is ineligible for
 another grant under this chapter until the second anniversary of
 the date the local government is determined ineligible.
 SECTION 24.  Section 2054.0701(c), Government Code, is
 amended to read as follows:
 (c)  A program offered under this section must:
 (1)  be approved by the Texas Higher Education
 Coordinating Board in accordance with Section 61.0512, Education
 Code;
 (2)  develop the knowledge and skills necessary for an
 entry-level information technology position in a state agency; and
 (3)  include a one-year apprenticeship with:
 (A)  the department;
 (B)  another relevant state agency;
 (C)  an organization working on a major
 information resources project; or
 (D)  a regional [network] security operations
 center established under Section 2063.602 [2059.202].
 SECTION 25.  Section 2056.002(b), Government Code, is
 amended to read as follows:
 (b)  The Legislative Budget Board and the governor's office
 shall determine the elements required to be included in each
 agency's strategic plan.  Unless modified by the Legislative Budget
 Board and the governor's office, and except as provided by
 Subsection (c), a plan must include:
 (1)  a statement of the mission and goals of the state
 agency;
 (2)  a description of the indicators developed under
 this chapter and used to measure the output and outcome of the
 agency;
 (3)  identification of the groups of people served by
 the agency, including those having service priorities, or other
 service measures established by law, and estimates of changes in
 those groups expected during the term of the plan;
 (4)  an analysis of the use of the agency's resources to
 meet the agency's needs, including future needs, and an estimate of
 additional resources that may be necessary to meet future needs;
 (5)  an analysis of expected changes in the services
 provided by the agency because of changes in state or federal law;
 (6)  a description of the means and strategies for
 meeting the agency's needs, including future needs, and achieving
 the goals established under Section 2056.006 for each area of state
 government for which the agency provides services;
 (7)  a description of the capital improvement needs of
 the agency during the term of the plan and a statement, if
 appropriate, of the priority of those needs;
 (8)  identification of each geographic region of this
 state, including the Texas-Louisiana border region and the
 Texas-Mexico border region, served by the agency, and if
 appropriate the agency's means and strategies for serving each
 region;
 (9)  a description of the training of the agency's
 contract managers under Section 656.052;
 (10)  an analysis of the agency's expected expenditures
 that relate to federally owned or operated military installations
 or facilities, or communities where a federally owned or operated
 military installation or facility is located;
 (11)  an analysis of the strategic use of information
 resources as provided by the instructions prepared under Section
 2054.095;
 (12)  a written certification of the agency's
 compliance with the cybersecurity training required under Sections
 2063.103 [2054.5191] and 2063.104 [2054.5192]; and
 (13)  other information that may be required.
 SECTION 26.  Section 2054.5181, Government Code, is
 repealed.
 SECTION 27.  (a)  In this section, "department" means the
 Department of Information Resources.
 (b)  On the effective date of this Act, the Texas Cyber
 Command, organized as provided by Section 2063.002, Government
 Code, as added by this Act, is created with the powers and duties
 assigned by Chapter 2063, Government Code, as added by this Act.
 (b-1)  As soon as practicable on or after the effective date
 of this Act, the governor shall appoint the chief of the Texas Cyber
 Command, as described by Section 2063.0025, Government Code, as
 added by this Act.
 (c)  Notwithstanding Subsection (b) of this section, the
 department shall continue to perform duties and exercise powers
 under Chapter 2054, Government Code, as that law existed
 immediately before the effective date of this Act, until the date
 provided by the memorandum of understanding entered into under
 Subsection (e) of this section.
 (d)  Not later than December 31, 2026:
 (1)  all functions and activities performed by the
 department that relate to cybersecurity under Chapter 2063,
 Government Code, as added by this Act, are transferred to the Texas
 Cyber Command;
 (2)  all employees of the department who primarily
 perform duties related to cybersecurity, including employees who
 provide administrative support for those services, under Chapter
 2063, Government Code, as added by this Act, become employees of the
 Texas Cyber Command, but continue to work in the same physical
 location unless moved in accordance with the memorandum of
 understanding entered into under Subsection (e) of this section;
 (3)  a rule or form adopted by the department that
 relates to cybersecurity under Chapter 2063, Government Code, as
 added by this Act, is a rule or form of the Texas Cyber Command and
 remains in effect until changed by the command;
 (4)  a reference in law to the department that relates
 to cybersecurity under Chapter 2063, Government Code, as added by
 this Act, means the Texas Cyber Command;
 (5)  a contract negotiation for a contract specified as
 provided by Subdivision (7) of this subsection in the memorandum of
 understanding entered into under Subsection (e) of this section or
 other proceeding involving the department that is related to
 cybersecurity under Chapter 2063, Government Code, as added by this
 Act, is transferred without change in status to the Texas Cyber
 Command, and the Texas Cyber Command assumes, without a change in
 status, the position of the department in a negotiation or
 proceeding relating to cybersecurity to which the department is a
 party;
 (6)  all money, leases, rights, and obligations of the
 department related to cybersecurity under Chapter 2063, Government
 Code, as added by this Act, are transferred to the Texas Cyber
 Command;
 (7)  contracts specified as necessary to accomplish the
 goals and duties of the Texas Cyber Command, as established by
 Chapter 2063, Government Code, as added by this Act, in the
 memorandum of understanding entered into under Subsection (e) of
 this section are transferred to the Texas Cyber Command;
 (8)  all property, including records, in the custody of
 the department related to cybersecurity under Chapter 2063,
 Government Code, as added by this Act, becomes property of the Texas
 Cyber Command, but stays in the same physical location unless moved
 in accordance with the specific steps and methods created under
 Subsection (e) of this section; and
 (9)  all funds appropriated by the legislature to the
 department for purposes related to cybersecurity, including funds
 for providing administrative support, under Chapter 2063,
 Government Code, as added by this Act, are transferred to the Texas
 Cyber Command.
 (e)  Not later than January 1, 2026, the department, in
 collaboration with the chief of the Texas Cyber Command, and the
 board of regents of The University of Texas System shall enter into
 a memorandum of understanding relating to the transfer of powers
 and duties from the department to the Texas Cyber Command as
 provided by this Act. The memorandum must include:
 (1)  a timetable and specific steps and methods for the
 transfer of all powers, duties, obligations, rights, contracts,
 leases, records, real or personal property, and unspent and
 unobligated appropriations and other funds relating to the
 administration of the powers and duties as provided by this Act;
 (2)  measures to ensure against any unnecessary
 disruption to cybersecurity operations during the transfer
 process; and
 (3)  a provision that the terms of any memorandum of
 understanding entered into related to the transfer remain in effect
 until the transfer is completed.
 SECTION 28.  This Act takes effect September 1, 2025.