SB 1, Hse 2nd Rdg, Amnd #233

Included in amounts appropriated above in Strategies B.2.1, Shared Technology Services; D.1.1, Central Administration; D.1.2, Information Resources; and D.1.3, Other Support Services, are all balances not previously encumbered as of August 31, 2025, (estimated to be $2,742,962), and revenues accruing during the 2026-27 biennium estimated to be $530,415,362 in fiscal year 2026 and $544,705,955 in fiscal year 2027 in revenue collected on or after September 1, 2025, appropriated from the operation and management of Statewide Technology Centers as provided by Government Code, Chapter 2054, Subchapter L out of Interagency Contracts and Appropriated Receipts to the Statewide Technology Account. In the event that unexpended and unobligated balances estimated to be remaining as of August 31, 2025, and/or revenues in each fiscal year are less than the amounts estimated by this rider, fund balances in the DIR Clearing Fund Account, authorized by Rider 11, Fund Balance Limitations, may be expended to address a shortfall, subject to the limitations on expenditures included in this rider.

Annually, within 90 calendar days after the close of each fiscal year, the Department of Information Resources shall report to the Legislative Budget Board, in a format prescribed by the Legislative Budget Board, actual spending by customer agencies and entities on shared technology services. The report shall include a list of 10 agencies with the largest changes in billed amounts compared to the agencies' capital budget items for Data Center/Shared Technology Services, with a description of the changes in the services procured through the program.

Any unexpended and unobligated balances remaining as of August 31, 2026, in the appropriation made herein are appropriated to the Property Tax Relief Fund and may be used only to reduce the state compression percentage pursuant to Section 48.255 of the Education Code.

Included in amounts appropriated above is $14,443,678 in fiscal year 2026 and $14,986,540 in fiscal year 2027 in Appropriated Receipts and Interagency Contracts to the Statewide Technology Account for the purpose of providing operating and indirect administrative costs, excluding payments to service providers for data center services/shared technology services for which the department bills customer state agencies and government entities. The department must notify the Legislative Budget Board to expend funds in excess of amounts identified in this rider for operating and indirect administrative costs. The department may not expend funds in excess of 110 percent of the amounts identified in this rider for operating and indirect administrative costs without prior written approval from the Legislative Budget Board. The department requesting the approval of the Legislative Budget Board shall submit in a timely manner the request along with adequate information for evaluating the request. Any additional information requested by the Legislative Budget Board must be submitted promptly and in a manner prescribed by the Legislative Budget Board. The request shall be considered to be approved unless the Legislative Budget Board issues a written disapproval within 30 business days after the date the Legislative Budget Board staff concludes its review of the request and forwards the review to the chair of the House Appropriations Committee, chair of the Senate Finance Committee, speaker of the house, and lieutenant governor. Any requests for additional information made by the Legislative Budget Board interrupt the counting of the 30 business days.

The Department of Information Resources shall report all administrative costs collected and the administrative cost percentage charged to each state agency and other users of statewide technology centers as defined in Government Code, Section 2054.380 to the governor and Legislative Budget Board annually as directed in Government Code, Section 2054.0346. The Legislative Budget Board and governor's office shall consider the incremental change to administrative percentages submitted. Without the written approval of the governor and the Legislative Budget Board, the Department of Information Resources may not expend funds appropriated to the department if those appropriated funds are associated with an increase to the administrative cost percentage charged to users of the statewide technology centers and deposited to the Statewide Technology Account. The request to increase the administrative cost percentage shall be considered to be approved by the Legislative Budget Board unless the Legislative Budget Board issues a written disapproval within 30 business days after the date the Legislative Budget Board staff concludes its review of the request and forwards the review to the chair of the House Appropriations Committee, chair of the Senate Finance Committee, speaker of the house, and lieutenant governor. Any requests for additional information made by the Legislative Budget Board interrupt the counting of the 30 business days. In addition, by September 15 of each even numbered year the department shall submit a report to the Legislative Budget Board detailing expended, budgeted and projected costs for data center services by participating agency. The report shall be in a format prescribed by the Legislative Budget Board.