H.B. No. 177 proposes amendments to the Government Code, specifically adding Section 441.231, which mandates the Texas State Library and Archives Commission to utilize appropriated funds and consortium service fees to purchase online library resources for primary and secondary schools. These resources must meet standards set by the State Board of Education and comply with federal Internet safety policies and technology protection measures. The State Board is tasked with establishing these standards and ensuring that vendors providing the resources certify their compliance.

Additionally, the bill outlines a compliance monitoring system where the State Board of Education will notify vendors of any noncompliance with the established standards. If a vendor fails to rectify the noncompliance within specified timeframes, the commission may withhold payments and consider the noncompliance a breach of contract. The commission is also required to submit an annual report on vendor compliance issues to the Legislative Budget Board and the governor's office. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

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