Relating to the establishment of the Texas Cyber Command and the transfer to it of certain powers and duties of the Department of Information Resources, the official text

H.B. No. 150

AN ACT

relating to the establishment of the Texas Cyber Command 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 or a

local government.

(9) "Information resources" has the meaning assigned

by Section 2054.003.

(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 state agency.

(b) The command is governed by a chief appointed by the

governor and confirmed with the advice and consent of the senate.

The chief serves for a two-year term expiring February 1 of each

odd-numbered year 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) The command may enter into an interagency agreement with

another state agency for the purpose of providing:

(1) administrative support services to the command as

necessary to carry out the purposes of this chapter and Chapter

2059; and

(2) a facility to the command located in San Antonio

that has a sensitive compartmented information facility for use in

carrying out the purposes of this chapter and Chapter 2059.

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) providing leadership, guidance, and tools to

enhance cybersecurity defenses;

(2) facilitating education and training of a

cybersecurity workforce;

(3) monitoring and coordinating cyber threat

intelligence and information systems to detect and warn entities of

cyber attacks, identifying cyber threats to critical

infrastructure and state systems, planning 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 use an official seal;

(2) establish ad hoc advisory committees as necessary

to carry out the command's duties under this chapter;

(3) acquire and convey property or an interest in

property;

(4) 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;

(5) 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

(6) 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 may 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 RESPONSE TO

CYBERSECURITY INCIDENT. (a) 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.

(b) The command shall, as soon as practicable after an

emergency purchase is made under this section:

(1) provide written notice to the Legislative Budget

Board and the governor describing the nature of the emergency, the

purchase made, and the vendor selected;

(2) ensure that documentation of the purchase,

including the justification for bypassing standard procedures and

the terms of the contract, is maintained and made available for

post-incident audit; and

(3) submit a report to the State Auditor's Office not

later than the 90th day after the date of the purchase describing:

(A) the necessity for making the purchase;

(B) the cost and duration of the contract; and

(C) any competitive processes used, if

applicable.

Sec. 2063.008. PURCHASING OF CYBERSECURITY RESOURCES BY

GOVERNMENTAL ENTITIES. (a) The command may not require, including

by rule, governmental entities to purchase specific cybersecurity

systems or resources.

(b) The command may adopt guidelines designating the

purchasing method that attains the best value for the state for

cybersecurity systems and resources.

Sec. 2063.009. RULES. The chief may adopt rules necessary

for carrying out the purposes of this chapter.

Sec. 2063.010. 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.

Sec. 2063.011. LAWS NOT AFFECTED. (a) Except as

specifically provided by this chapter, this chapter does not affect

laws, rules, or decisions relating to the confidentiality or

privileged status of categories of information or communications.

(b) This chapter does not enlarge the right of state

government to require information, records, or communications from

the people.

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, subject to a contractual agreement, 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;

(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.

Sec. 2063.409. INFORMATION SECURITY ASSESSMENT AND

PENETRATION TEST REQUIRED. (a) This section does not apply to a

university system or institution of higher education as defined by

Section 61.003, Education Code.

(b) At least once every two years, the command shall require

each state agency to complete an information security assessment

and a penetration test to be performed by the command or, at the

command's discretion, a vendor selected by the command.

(c) The chief shall adopt rules as necessary to implement

this section, including rules for the procurement of a vendor under

Subsection (b).

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 incident [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 incident [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

incident [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 [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. Section 2054.0593, Government Code, is

transferred to Subchapter E, Chapter 2063, Government Code, as

added by this Act, redesignated as Section 2063.408, Government

Code, and amended to read as follows:

Sec. 2063.408 [2054.0593]. CLOUD COMPUTING STATE RISK AND

AUTHORIZATION MANAGEMENT PROGRAM. (a) In this section, "cloud

computing service" has the meaning assigned by Section 2157.007.

(b) The command [department] shall establish a state risk

and authorization management program to provide a standardized

approach for security assessment, authorization, and continuous

monitoring of cloud computing services that process the data of a

state agency. The program must allow a vendor to demonstrate

compliance by submitting documentation that shows the vendor's

compliance with a risk and authorization management program of:

(1) the federal government; or

(2) another state that the command [department]

approves.

(c) The command [department] by rule shall prescribe:

(1) the categories and characteristics of cloud

computing services subject to the state risk and authorization

management program; and

(2) the requirements for certification through the

program of vendors that provide cloud computing services.

(d) A state agency shall require each vendor contracting

with the agency to provide cloud computing services for the agency

to comply with the requirements of the state risk and authorization

management program. The command [department] shall evaluate

vendors to determine whether a vendor qualifies for a certification

issued by the department reflecting compliance with program

requirements.

(e) A state agency may not enter or renew a contract with a

vendor to purchase cloud computing services for the agency that are

subject to the state risk and authorization management program

unless the vendor demonstrates compliance with program

requirements.

(f) A state agency shall require a vendor contracting with

the agency to provide cloud computing services for the agency that

are subject to the state risk and authorization management program

to maintain program compliance and certification throughout the

term of the contract.

SECTION 17. 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 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 18. 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 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 19. Sections 11.175(c) and (h-1), Education Code,

are amended to read as follows:

(c) A school district's cybersecurity policy may not

conflict with the information security standards for institutions

of higher education adopted by the Texas Cyber Command [Department

of Information Resources] under Chapters [2054 and] 2059 and 2063,

Government Code.

(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 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 22. Section 411.0765(b), Government Code, is

amended to read as follows:

(b) A criminal justice agency may disclose criminal history

record information that is the subject of an order of nondisclosure

of criminal history record information under this subchapter to the

following noncriminal justice agencies or entities only:

(1) the State Board for Educator Certification;

(2) a school district, charter school, private school,

regional education service center, commercial transportation

company, or education shared services arrangement;

(3) the Texas Medical Board;

(4) the Texas School for the Blind and Visually

Impaired;

(5) the Board of Law Examiners;

(6) the State Bar of Texas;

(7) a district court regarding a petition for name

change under Subchapter B, Chapter 45, Family Code;

(8) the Texas School for the Deaf;

(9) the Department of Family and Protective Services;

(10) the Texas Juvenile Justice Department;

(11) the Department of Assistive and Rehabilitative

Services;

(12) the Department of State Health Services, a local

mental health service, a local intellectual and developmental

disability authority, or a community center providing services to

persons with mental illness or intellectual or developmental

disabilities;

(13) the Texas Private Security Board;

(14) a municipal or volunteer fire department;

(15) the Texas Board of Nursing;

(16) a safe house providing shelter to children in

harmful situations;

(17) a public or nonprofit hospital or hospital

district, or a facility as defined by Section 250.001, Health and

Safety Code;

(18) the securities commissioner, the banking

commissioner, the savings and mortgage lending commissioner, the

consumer credit commissioner, or the credit union commissioner;

(19) the Texas State Board of Public Accountancy;

(20) the Texas Department of Licensing and Regulation;

(21) the Health and Human Services Commission;

(22) the Department of Aging and Disability Services;

(23) the Texas Education Agency;

(24) the Judicial Branch Certification Commission;

(25) a county clerk's office in relation to a

proceeding for the appointment of a guardian under Title 3, Estates

Code;

(26) the Texas Cyber Command [Department of

Information Resources] but only regarding an employee, applicant

for employment, contractor, subcontractor, intern, or volunteer

who provides network security services under Chapter 2059 to:

(A) the Texas Cyber Command [Department of

Information Resources]; or

(B) a contractor or subcontractor of the Texas

Cyber Command [Department of Information Resources];

(27) the Texas Department of Insurance;

(28) the Teacher Retirement System of Texas;

(29) the Texas State Board of Pharmacy;

(30) the Texas Civil Commitment Office;

(31) a bank, savings bank, savings and loan

association, credit union, or mortgage banker, a subsidiary or

affiliate of those entities, or another financial institution

regulated by a state regulatory entity listed in Subdivision (18)

or by a corresponding federal regulatory entity, but only regarding

an employee, contractor, subcontractor, intern, or volunteer of or

an applicant for employment by that bank, savings bank, savings and

loan association, credit union, mortgage banker, subsidiary or

affiliate, or financial institution; and

(32) an employer that has a facility that handles or

has the capability of handling, transporting, storing, processing,

manufacturing, or controlling hazardous, explosive, combustible,

or flammable materials, if:

(A) the facility is critical infrastructure, as

defined by 42 U.S.C. Section 5195c(e), or the employer is required

to submit to a risk management plan under Section 112(r) of the

federal Clean Air Act (42 U.S.C. Section 7412) for the facility; and

(B) the information concerns an employee,

applicant for employment, contractor, or subcontractor whose

duties involve or will involve the handling, transporting, storing,

processing, manufacturing, or controlling hazardous, explosive,

combustible, or flammable materials and whose background is

required to be screened under a federal provision described by

Paragraph (A).

SECTION 23. Section 418.0195(a), Government Code, is

amended to read as follows:

(a) This section applies only to a computer network used by:

(1) a state agency; or

(2) an entity other than a state agency receiving

network security services from the Texas Cyber Command [Department

of Information Resources] under Section 2059.058.

SECTION 24. 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 25. Section 2054.380(b), Government Code, is

amended to read as follows:

(b) Revenue derived from the collection of fees imposed

under Subsection (a) may be appropriated to the department for:

(1) developing statewide information resources

technology policies and planning under this chapter [and Chapter

2059]; and

(2) providing shared information resources technology

services under this chapter.

SECTION 26. 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 27. 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 28. Section 2059.001, Government Code, is amended

by adding Subdivision (1-a) to read as follows:

(1-a) "Command" means the Texas Cyber Command.

SECTION 29. Section 2059.051, Government Code, is amended

to read as follows:

Sec. 2059.051. COMMAND [DEPARTMENT] RESPONSIBLE FOR

PROVIDING COMPUTER NETWORK SECURITY SERVICES. The command

[department] shall provide network security services to:

(1) state agencies; and

(2) other entities by agreement as provided by Section

2059.058.

SECTION 30. Section 2059.052, Government Code, is amended

to read as follows:

Sec. 2059.052. SERVICES PROVIDED TO INSTITUTIONS OF HIGHER

EDUCATION. The command [department] may provide network security

services to an institution of higher education, and may include an

institution of higher education in a center, only if and to the

extent approved by the Information Technology Council for Higher

Education.

SECTION 31. Section 2059.053, Government Code, is amended

to read as follows:

Sec. 2059.053. RULES. The command [department] may adopt

rules necessary to implement this chapter.

SECTION 32. Section 2059.054, Government Code, is amended

to read as follows:

Sec. 2059.054. OWNERSHIP OR LEASE OF NECESSARY

EQUIPMENT. The command [department] may purchase in accordance

with Chapters 2155, 2156, 2157, and 2158 any facilities or

equipment necessary to provide network security services to state

agencies.

SECTION 33. Section 2059.055(a), Government Code, is

amended to read as follows:

(a) Confidential network security information may be

released only to officials responsible for the network, law

enforcement, the state auditor's office, and agency or elected

officials designated by the command [department].

SECTION 34. Section 2059.056, Government Code, is amended

to read as follows:

Sec. 2059.056. RESPONSIBILITY FOR EXTERNAL AND INTERNAL

SECURITY THREATS. If the command [department] provides network

security services for a state agency or other entity under this

chapter, the command [department] is responsible for network

security from external threats for that agency or entity. Network

security management for that state agency or entity regarding

internal threats remains the responsibility of that state agency or

entity.

SECTION 35. Section 2059.057, Government Code, is amended

to read as follows:

Sec. 2059.057. BIENNIAL REPORT. (a) The command

[department] shall biennially prepare a report on:

(1) the command's [department's] accomplishment of

service objectives and other performance measures under this

chapter; and

(2) the status, including the financial performance,

of the consolidated network security system provided through the

center.

(b) The command [department] shall submit the report to:

(1) the governor;

(2) the lieutenant governor;

(3) the speaker of the house of representatives; and

(4) the state auditor's office.

SECTION 36. Section 2059.058, Government Code, is amended

to read as follows:

Sec. 2059.058. AGREEMENT TO PROVIDE NETWORK SECURITY

SERVICES TO ENTITIES OTHER THAN STATE AGENCIES. In addition to the

command's [department's] duty to provide network security services

to state agencies under this chapter, the command [department] by

agreement may provide network security services to:

(1) each house of the legislature and a legislative

agency;

(2) a local government;

(3) the supreme court, the court of criminal appeals,

or a court of appeals;

(4) a public hospital owned or operated by this state

or a political subdivision or municipal corporation of this state,

including a hospital district or hospital authority;

(5) the Texas Permanent School Fund Corporation;

(6) an open-enrollment charter school, as defined by

Section 5.001, Education Code;

(7) a private school, as defined by Section 5.001,

Education Code;

(8) a private or independent institution of higher

education, as defined by Section 61.003, Education Code;

(9) a volunteer fire department, as defined by Section

152.001, Tax Code; and

(10) an independent organization certified under

Section 39.151, Utilities Code, for the ERCOT power region.

SECTION 37. Section 2059.101, Government Code, is amended

to read as follows:

Sec. 2059.101. NETWORK SECURITY CENTER. The command

[department] shall establish a network security center to provide

network security services to state agencies.

SECTION 38. Sections 2059.102(a), (b), and (d), Government

Code, are amended to read as follows:

(a) The command [department] shall manage the operation of

network security system services for all state agencies at the

center.

(b) The command [department] shall fulfill the network

security requirements of each state agency to the extent

practicable. However, the command [department] shall protect

criminal justice and homeland security networks of this state to

the fullest extent possible in accordance with federal criminal

justice and homeland security network standards.

(d) A state agency may not purchase network security

services unless the command [department] determines that the

agency's requirement for network security services cannot be met at

a comparable cost through the center. The command [department]

shall develop an efficient process for this determination.

SECTION 39. Sections 2059.103(a), (b), and (d), Government

Code, are amended to read as follows:

(a) The command [department] shall locate the center at a

location that has an existing secure and restricted facility,

cyber-security infrastructure, available trained workforce, and

supportive educational capabilities.

(b) The command [department] shall control and monitor all

entrances and critical areas to prevent unauthorized entry. The

command [department] shall limit access to authorized individuals.

(d) The command [department] shall restrict operational

information to personnel at the center, except as provided by

Chapter 321.

SECTION 40. Section 2059.104, Government Code, is amended

to read as follows:

Sec. 2059.104. CENTER SERVICES AND SUPPORT. (a) The

command [department] shall provide the following managed security

services through the center:

(1) real-time network security monitoring to detect

and respond to network security events that may jeopardize this

state and the residents of this state, including vulnerability

assessment services consisting of a comprehensive security posture

assessment, external and internal threat analysis, and penetration

testing;

(2) continuous, 24-hour alerts and guidance for

defeating network security threats, including firewall

preconfiguration, installation, management and monitoring,

intelligence gathering, protocol analysis, and user

authentication;

(3) immediate incident response to counter network

security activity that exposes this state and the residents of this

state to risk, including complete intrusion detection systems

installation, management, and monitoring and a network operations

call center;

(4) development, coordination, and execution of

statewide cyber-security operations to isolate, contain, and

mitigate the impact of network security incidents at state

agencies;

(5) operation of a central authority for all statewide

information assurance programs; and

(6) the provision of educational services regarding

network security.

(b) The command [department] may provide:

(1) implementation of best-of-breed information

security architecture engineering services, including public key

infrastructure development, design, engineering, custom software

development, and secure web design; or

(2) certification and accreditation to ensure

compliance with the applicable regulatory requirements for

cyber-security and information technology risk management,

including the use of proprietary tools to automate the assessment

and enforcement of compliance.

SECTION 41. Sections 2059.105(a) and (b), Government Code,

are amended to read as follows:

(a) The command [department] shall adopt and provide to all

state agencies appropriate network security guidelines and

standard operating procedures to ensure efficient operation of the

center with a maximum return on investment for the state.

(b) The command [department] shall revise the standard

operating procedures as necessary to confirm network security.

SECTION 42. Section 2059.1055, Government Code, is amended

to read as follows:

Sec. 2059.1055. NETWORK SECURITY IN A STATE OF DISASTER.

The department, in coordination with the command, shall disconnect

the computer network of an entity receiving security services under

this chapter from the Internet if the governor issues an order under

Section 418.0195 to disconnect the network because of a substantial

external threat to the entity's computer network.

SECTION 43. Section 2059.106, Government Code, is amended

to read as follows:

Sec. 2059.106. PRIVATE VENDOR. The command [department]

may contract with a private vendor to build and operate the center

and act as an authorized agent to acquire, install, integrate,

maintain, configure, and monitor the network security services and

security infrastructure elements.

SECTION 44. Section 2059.151, Government Code, is amended

to read as follows:

Sec. 2059.151. PAYMENT FOR SERVICES. The department shall

develop a system of billings and charges for services provided by

the command in operating and administering the network security

system that allocates the total state cost to each state agency or

other entity served by the system based on proportionate usage.

SECTION 45. Section 2059.152, Government Code, is amended

by adding Subsection (d) to read as follows:

(d) The department shall enter into an agreement with the

command to transfer funds as necessary for the performance of

functions under this chapter.

SECTION 46. Section 2059.153, Government Code, is amended

to read as follows:

Sec. 2059.153. GRANTS. The command [department] may apply

for and use for purposes of this chapter the proceeds from grants

offered by any federal agency or other source.

SECTION 47. Section 2157.068(d), Government Code, is

amended to read as follows:

(d) The department may charge a reasonable administrative

fee to a state agency, local government, or governmental entity of

another state that purchases commodity items through the department

in an amount that is sufficient to recover costs associated with the

administration of this section. Revenue derived from the

collection of fees imposed under this subsection may be

appropriated to the department for:

(1) developing statewide information resources

technology policies and planning under Chapter [Chapters] 2054 [and

2059]; and

(2) providing shared information resources technology

services under Chapter 2054.

SECTION 48. Section 2170.057(a), Government Code, is

amended to read as follows:

(a) The department shall develop a system of billings and

charges for services provided in operating and administering the

consolidated telecommunications system that allocates the total

state cost to each entity served by the system based on

proportionate usage. The department shall set and charge a fee to

each entity that receives services provided under this chapter in

an amount sufficient to cover the direct and indirect costs of

providing the service. Revenue derived from the collection of fees

imposed under this subsection may be appropriated to the department

for:

(1) developing statewide information resources

technology policies and planning under Chapter [Chapters] 2054 [and

2059]; and

(2) providing[:

[(A)] shared information resources technology

services under Chapter 2054[; and

[(B) network security services under Chapter

2059].

SECTION 49. The following provisions of the Government Code

are repealed:

(1) Section 2054.059;

(2) Section 2054.076(b-1);

(3) Section 2054.511; and

(4) Section 2054.5181.

SECTION 50. (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, and

Chapter 2059, Government Code, as amended 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 2063.002, Government Code, as

added by this Act, to a term expiring February 1, 2027.

(c) Notwithstanding Subsection (b) of this section, the

department shall continue to perform duties and exercise powers

under Chapters 2054 and 2059, 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, or network security under

Chapter 2059, Government Code, as amended by this Act, are

transferred to the Texas Cyber Command;

(2) all employees of the department who primarily

perform duties related to cybersecurity under Chapter 2063,

Government Code, as added by this Act, or network security under

Chapter 2059, Government Code, as amended 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, or network security under Chapter 2059,

Government Code, as amended 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, or network security under Chapter 2059, Government Code,

as amended 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, or network security under Chapter 2059, Government Code, as

amended 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 or network security 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, or network security under Chapter 2059,

Government Code, as amended 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, or network security under

Chapter 2059, Government Code, as amended 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 under Chapter

2063, Government Code, as added by this Act, or network security

under Chapter 2059, Government Code, as amended by this Act, are

transferred to the Texas Cyber Command.

(e) Not later than January 1, 2026, the department and Texas

Cyber Command 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 or network security 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 51. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 150 was passed by the House on April

16, 2025, by the following vote: Yeas 130, Nays 13, 1 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 150 on May 29, 2025, by the following vote: Yeas 115, Nays 21,

1 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 150 was passed by the Senate, with

amendments, on May 27, 2025, by the following vote: Yeas 31, Nays

0.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor