By: Capriglione, et al. (Senate Sponsor - Paxton) H.B. No. 3963          (In the Senate - Received from the House May 8, 2025;   May 9, 2025, read first time and referred to Committee on Health &   Human Services; May 26, 2025, reported adversely, with favorable   Committee Substitute by the following vote:  Yeas 9, Nays 0;   May 26, 2025, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR H.B. No. 3963 By:  Perry     A BILL TO BE ENTITLED   AN ACT     relating to an early childhood integrated data system.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle B, Title 2, Education Code, is amended   by adding Chapter 10 to read as follows:   CHAPTER 10.  EARLY CHILDHOOD INTEGRATED DATA SYSTEM          Sec. 10.001.  DEFINITIONS. In this chapter:                (1)  "Cooperating entity" means the:                      (A)  Children's Learning Institute at The   University of Texas Health Science Center at Houston;                      (B)  Health and Human Services Commission;                      (C)  Texas Education Agency; and                      (D)  Texas Workforce Commission.                (2)  "Early childhood interagency work group" means the   work group established to promote collaboration across state   agencies serving families with young children and that consists of   representatives from the following state agencies:                      (A)  Department of Family and Protective   Services;                      (B)  Department of State Health Services;                      (C)  Health and Human Services Commission;                      (D)  Texas Education Agency; and                      (E)  Texas Workforce Commission.                (3)  "Lead agency" means the Texas Education Agency.                (4)  "System" means the early childhood integrated data   system established under this subchapter.          Sec. 10.002.  INITIAL DEVELOPMENT OF EARLY CHILDHOOD   INTEGRATED DATA SYSTEM. (a)  Subject to Section 10.003(1), the   early childhood interagency work group shall initiate the   development of the early childhood integrated data system for the   purpose of facilitating the sharing of data from early childhood   programs across state agencies to:                (1)  inform policy related to early childhood programs   at the state level; and                (2)  guide improvements to early childhood programs to   provide better outcomes for children and families.          (b)  The system must be developed in a manner that:                (1)  allows for the integration of existing state and   federal data systems that are accessible to the cooperating   entities and that contain data derived from early childhood   services and programs;                (2)  allows for the identification of and reporting on:                      (A)  specific outcome measures using aggregated   data that does not contain any identifying information, to the   extent state or federal law, as applicable, expressly authorizes   that use of the information;                      (B)  gaps in services;                      (C)  opportunities to align services and   programs; and                      (D)  coordination needs across services and   programs; and                (3)  complies with state and federal laws relating to   privacy, cybersecurity, and data collection, including rules   establishing procedures to ensure that there is no unauthorized   duplication or removal of confidential information.          (c)  Nothing in this chapter may be construed to authorize   the collection of data other than that described by Subsection   (b)(1).          Sec. 10.003.  LEAD AGENCY DUTIES. The lead agency shall:                (1)  oversee the completion of the system initially   developed under Section 10.002 in a manner consistent with the   requirements of that section;                (2)  implement and maintain the system with assistance   from the early childhood interagency work group;                (3)  provide staff to operate the system;                (4)  using system data, conduct data matching using a   protocol approved by the cooperating entities; and                (5)  in coordination with the cooperating entities,   oversee research projects related to the system.          Sec. 10.004.  COOPERATING ENTITIES. (a)  The lead agency and   each cooperating entity shall enter into a memorandum of   understanding regarding the sharing of data for purposes of the   system.  The memorandum of understanding must specify the data to be   shared consistent with Sections 10.002(b)(1) and (c) and the   frequency and manner of that data sharing.          (b)  Each cooperating entity shall participate in the system   and share data for purposes of the system as required by the   memorandum of understanding.          Sec. 10.005.  REPORTING REQUIREMENTS. (a)  Not later than   September 1 of each year, the lead agency shall submit to the   governor and the legislature a report on the progress in   developing, establishing, and operating the system.          (b)  The initial report required by Subsection (a) must   include:                (1)  an interagency data governance plan that includes:                      (A)  objectives relevant to the system and a   framework for achieving those objectives;                      (B)  the roles and responsibilities of all state   entities involved in establishing and maintaining the system; and                      (C)  documentation of relevant state and federal   privacy, cybersecurity, and data collection laws, including rules;                (2)  a design plan that includes:                      (A)  data integration, security, storage,   retention, management, processing, and analytics and other   products; and                      (B)  roles and responsibilities of relevant state   entity personnel regarding data integration; and                (3)  information on the status of:                      (A)  hiring staff described by Section 10.003(3);                      (B)  funding applied for and secured; and                      (C)  the development of an Internet website that   includes a preliminary, publicly available consumer data   dashboard.          (c)  Each report required by Subsection (a) following the   initial report must include:                (1)  updates to the information required by Subsection   (b);                (2)  an overview on business use cases the system can   support; and                 (3)  information on the development of analytic tools   based on the business use cases described by Subdivision (2).           Sec. 10.006.  FUNDING; ACCEPTANCE OF GIFTS, GRANTS, AND   DONATIONS. (a)  The early childhood interagency work group, the   cooperating entities, and the lead agency may use any available   state or federal money to develop the system.          (b)  The lead agency shall actively pursue grants or other   money available from the state and federal government to operate   the system.          (c)  The early childhood interagency work group, the   cooperating entities, and the lead agency may accept gifts, grants,   and donations from any source for the purposes of this chapter.          SECTION 2.  An entity to which Chapter 10, Education Code, as   added by this Act, applies is required to implement a provision of   this Act only if the legislature appropriates money specifically   for that purpose.  If the legislature does not appropriate money   specifically for that purpose during a state fiscal biennium, an   entity may, but is not required to, implement a provision of this   Act using other money available for that purpose.          SECTION 3.  The Texas Education Agency shall undertake to   ensure that the early childhood integrated data system established   under Section 10.002, Education Code, as added by this Act, is   completed not later than January 1, 2027.          SECTION 4.  This Act takes effect September 1, 2025.     * * * * *