H.B. No. 3963 establishes a new Chapter 10 in the Education Code, titled "Early Childhood Integrated Data System." This chapter outlines the creation of an integrated data system aimed at facilitating the sharing of data from early childhood programs across various state agencies, including the Texas Education Agency, Health and Human Services Commission, and Texas Workforce Commission. The early childhood interagency work group is tasked with initiating the development of this system, which will inform policy and improve outcomes for children and families. The system must integrate existing data systems, comply with privacy laws, and ensure no unauthorized duplication of confidential information.

The bill also mandates that the lead agency, which is the Texas Education Agency, oversee the system's development and operation, including conducting data matching and coordinating research projects. Additionally, it requires the lead agency to submit annual reports to the governor and legislature detailing the system's progress, including an interagency data governance plan and updates on staffing and funding. The act will take effect on September 1, 2025, and the system is expected to be completed by January 1, 2027. Importantly, the implementation of the provisions is contingent upon the legislature appropriating funds specifically for this purpose.

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