The Future of Licensing in Texas: Digital Transformation with Joshua Kuntz, CISO of TDLR

oversees a vast array of professional and business licenses, and consumer protection regulation serving millions of Texans across diverse industries. Joshua Kuntz, Chief Information Security Officer, plays a crucial role in supporting TDLR's digital transformation efforts to modernize and secure the agency’s technology landscape.

In this exclusive interview with The Daily Pulse, Kuntz discusses the challenges of consolidating legacy systems, the agency’s cloud-first strategy, and the evolving role of AI and automation in public service. He also shares insights on cybersecurity priorities and the unique challenges of attracting tech talent to the public sector, all while maintaining a focus on service and innovation.

1. TDLR manages a wide array of licenses across various industries. How has digital transformation helped streamline this complexity, and what challenges have you faced in modernizing such a diverse set of services?

TDLR has grown over the years from ~100 staff with 11 programs in 1998 to 590 staff overseeing 38 programs with nearly 1 million license in primarily two ways; the creation of new licensing/regulatory programs (like EV charging stations) or through the absorption of small agencies or programs through the “Sunset” process. In the case of the latter, State Agencies undergo a review that seeks to answer three questions.

First, is the mission of the agency still needed? For instance, if there was a “horse and buggy commission,” that’s probably no longer needed. Secondly, is the agency efficient and effective in accomplishing that mission? The answer to this can be yes, no, or partially.

Finally, does the agency need to still exist? Sometimes these are easier to answer than others. If they are partially efficient/effective and the mission is still necessary, there will be recommendations for improvement. If the answer is no, but still necessary, they could be abolished and the program sent elsewhere.

Often time the elsewhere is TDLR and the Agency would take on whatever licensing system currently in use for that program and operate multiple disparate systems as to not incur additional cost to the State. Over time, this has created a patchwork of outdated systems, leading to inefficiencies that we’re now addressing in our current digital transformation project to consolidate all of these systems into one cohesive cloud-based licensing application.

This will provide the public with more self-service licensing options and economies of scale for the operation and maintenance of the singular system. I’m sure we have to face some challenges in our modernization effort, but as we have just begun this journey, those have not yet been realized.

2. How is TDLR leveraging technology to improve the experience of Texas residents and license holders? Are there any standout innovations or platforms you’ve recently launched?

Imagine renewing your professional license in minutes through your mobile device or getting real-time updates on application statuses—those are the goals and objectives of the New Licensing System. Beyond a self-service platform for licensees to obtain and renew their licenses, TDLR will improve transparency for Texas residents about the professions and entities we license and regulate. Additionally, we will provide more efficient use of taxpayer dollars though a single modernized system with lower support burden. As we have just begun our digital transformation, those benefits have not yet been realized to improved experiences for Texas residents.

3. With the amount of personal and business data TDLR handles, how are you approaching cybersecurity and data privacy? What are your current priorities in this space?

TDLR takes a risk-based approach to data security and privacy, dedicating the most resources to the highest value systems and data. Utilizing the Texas Cybersecurity Framework, we focus on the control objectives that provide the most “bang for the buck” like securing transmission pathways, data loss prevention, multifactor authentication, and secure development practices.

4. Has TDLR adopted cloud infrastructure in any major way? What does your current IT stack look like, and how are you balancing legacy systems with cloud-first solutions?

TDLR, as does the rest of the State, has a cloud first approach to the deployment of systems and applications. Through the Licensing System Replacement Project the Agency will move from primarily traditional data center based systems to a Software as a Service cloud-application deployment.

However, we have made some incremental progress in consolidating significantly outdated systems into the larger licensing databases in current use to limit the amount of data migration overhead that will be necessary to implement the new system.

5. Are AI, automation, or machine learning being explored or deployed in any capacity perhaps in application processing, fraud detection, or customer service?

The current focus of the AI roadmap is to improve customer service internally, with consistent knowledge base for all representatives, then move to an external facing customer service model for public data and queries, and finally to an authenticated, automated approach to licensee interaction for status of applications and renewals, as well as public transparency into the licensee population, enforcement actions, anti-human trafficking efforts, and public notices.

6. What’s your approach to attracting and retaining tech talent in the public sector? How do you foster a culture of innovation within a regulatory body?

Traditionally, the largest attraction was the State Pension. However, that has been eroded over the years which has made recruitment more difficult.

Currently, the Dept of Education still has a student loan forgiveness program tied to public service, so that is one attractant.

Emphasizing the public service aspect of the work, with a mission and purpose that have tangible, positive effects on the citizens does appeal to many people looking for impactful work.