Sparks’ Water Utility Internet Ban Waits Until 2027

The text as introduced · 1,370 words

89R9459 ANG-F

By: Sparks, Perry
S.B. No. 1034

A BILL TO BE ENTITLED

AN ACT

relating to cybersecurity for retail public utilities that provide

water or sewer service.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2054.0525, Government Code, is amended

to read as follows:

Sec. 2054.0525. CUSTOMERS ELIGIBLE FOR DEPARTMENT

SERVICES. If the executive director determines that participation

is in the best interest of this state, the following entities are

eligible customers for services the department provides:

(1) a state agency;

(2) a local government;

(3) the legislature or a legislative agency;

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

or a court of appeals;

(5) 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;

(6) an independent organization certified under

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

(7) the Texas Permanent School Fund Corporation;

(8) an assistance organization, as defined by Section

2175.001;

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

Section 5.001, Education Code;

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

Education Code;

(11) a private or independent institution of higher

education, as defined by Section 61.003, Education Code;

(12) a public safety entity, as defined by 47 U.S.C.

Section 1401;

(13) a volunteer fire department, as defined by

Section 152.001, Tax Code; [ and ]

(14) a governmental entity of another state ; and

(15) a retail public utility, as defined by Section

13.002, Water Code .

SECTION 2. 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

department's duty to provide network security services to state

agencies under this chapter, the 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 ; and

(11) a retail public utility, as defined by Section

13.002, Water Code .

SECTION 3. Chapter 13, Water Code, is amended by adding

Subchapter O to read as follows:

SUBCHAPTER O. CYBERSECURITY REQUIREMENTS

Sec. 13.601. DEFINITIONS. In this subchapter:

(1) "Center" means the Cyber Center for Security and

Analytics at The University of Texas at San Antonio.

(2) "Department" means the Department of Information

Resources.

Sec. 13.602. CONNECTION BETWEEN SUPERVISORY CONTROL AND

DATA ACQUISITION SYSTEM AND INTERNET PROHIBITED. (a) A retail

public utility may not connect the retail public utility's

supervisory control and data acquisition system, or another

equivalent operational information technology infrastructure, to

the Internet.

(b) Notwithstanding Subsection (a), a supervisory control

and data acquisition system or other equivalent operational

information technology infrastructure may be operated by an

intranet, site-to-site virtual private network.

(c) The commission, in consultation with the department,

shall adopt rules as necessary to implement this section.

Sec. 13.603. REQUIREMENTS AND CONTROLS. (a) The

commission, in consultation with and as recommended by the

department and the center, by rule shall adopt cybersecurity

requirements for retail public utilities to require the

authentication of a retail public utility employee's

identification before granting the employee access to a retail

public utility's network or information systems.

(b) Not later than September 1 of each even-numbered year,

the commission, in consultation with the department and the center,

shall review and amend as necessary rules adopted under this

section to ensure that the cybersecurity requirements continue to

provide effective cybersecurity protection for retail public

utilities.

Sec. 13.604. TRAINING. At least annually, a retail public

utility shall:

(1) identify any employees and officials who:

(A) have access to the retail public utility's

computer system or databases; or

(B) use a computer to perform any 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, Government Code.

Sec. 13.605. SECURITY ASSESSMENT AND COMPLIANCE AUDIT. (a)

The commission, the utility commission, or the department may

require a retail public utility to conduct, in accordance with

commission and department rules:

(1) a security assessment of the retail public

utility's:

(A) information resource systems;

(B) network systems;

(C) digital data storage systems;

(D) digital data security measures; or

(E) information resources vulnerabilities; or

(2) an audit of the retail public utility's compliance

with this subchapter.

(b) Not later than the 90th day after the date a retail

public utility completes a security assessment or audit under

Subsection (a), the retail public utility shall report the results

of the assessment or audit to:

(1) the commission;

(2) the utility commission; and

(3) the department.

(c) A standing committee of the legislature with

jurisdiction over cybersecurity or water service may request that

the commission, the utility commission, or the department require

an assessment or audit under Subsection (a) from a retail public

utility.

(d) The department shall provide to the center, and if

applicable the standing committee of the legislature that requested

the assessment or audit, access to each assessment or audit

conducted under Subsection (a).

(e) The department or the center may conduct a security

assessment or audit required by this section on behalf of a retail

public utility.

(f) A retail public utility may contract with a person who

is not the department or the center to conduct a security assessment

or audit under this section.

(g) Information contained in a report prepared under this

section is confidential and not subject to disclosure under Chapter

552, Government Code.

(h) The commission, in consultation with the department and

the center, shall adopt rules as necessary to implement this

section.

Sec. 13.606. SECURITY INCIDENT NOTIFICATION. (a) In this

section:

(1) "Confidential information" means information the

disclosure of which is regulated by law.

(2) "Sensitive personal information" has the meaning

assigned by Section 521.002(a)(2)(A), Business & Commerce Code.

(b) A retail public utility that owns, licenses, or

maintains computerized data that includes sensitive personal

information or other confidential information shall notify the

commission, the utility commission, the department, and the center

of a security incident, not later than 48 hours after the discovery

of the incident, during which:

(1) a person other than the retail public utility made

an unauthorized acquisition of computerized data that compromises

the security, confidentiality, or integrity of sensitive personal

information or other confidential information maintained by the

retail public utility, including data that is encrypted if the

person who acquired the data has the key required to decrypt the

data;

(2) ransomware, as defined by Section 33.023, Penal

Code, was introduced into a computer, computer network, or computer

system; or

(3) unauthorized access of a computer information

system or network led to a substantial loss of availability of the

system or network or otherwise disrupted a retail public utility's

ability to engage in business or deliver services.

(c) Subsection (b)(1) does not apply to a good faith

acquisition of data by an employee or agent of the retail public

utility for the purposes of the retail public utility if the

employee or agent does not use or disclose the data in an

unauthorized manner.

SECTION 4. Not later than September 1, 2026, the Texas

Commission on Environmental Quality and the Department of

Information Resources shall adopt the rules necessary to implement

the changes in law made by this Act.

SECTION 5. A retail public utility shall comply with

Section 13.602, Water Code, as added by this Act, not later than

September 1, 2027.

SECTION 6. This Act takes effect September 1, 2025.