House Bill No. 3963 proposes the establishment of an Early Childhood Integrated Data System in Texas, aimed at enhancing the sharing of data among various state agencies that serve families with young children. The bill introduces Chapter 74 to the Human Resources Code, defining key terms such as "cooperating entity," "early childhood interagency workgroup," and "lead agency." The early childhood interagency workgroup is tasked with developing the data system to improve policy-making and program outcomes for children and families. The system will integrate existing state and federal data systems, ensuring compliance with privacy and cybersecurity laws.

The bill outlines the responsibilities of the lead agency, which will be designated by the interagency workgroup, and mandates the creation of a memorandum of understanding for data sharing among cooperating entities. It also establishes annual reporting requirements to the legislature on the progress of the system's development and operation. The early childhood interagency workgroup is required to designate the lead agency and submit an initial report by January 1, 2026. The act is set to take effect on September 1, 2025, and allows for the use of state or federal funds to support the system's development and operation.

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