Nebraska bill would require agency IT inventories, create tech infrastructure cash fund

Senator Christy Armendariz introduced LB992, as amended by AM2159, at a hearing of the Nebraska Legislature’s Appropriations Committee, saying the measure requires agencies to submit three components in their biennial budget filings: budget requests, a comprehensive inventory of software and hardware, and a six‑year plan outlining anticipated technology needs and related costs. The amendment also would create the Nebraska Technology Infrastructure Cash Fund to help finance cross‑agency IT modernization projects.

“Providing this information will give the legislature a clearer view of statewide technology assets, help reduce duplicative purchases, and support more strategic decision making,” Armendariz said, adding the change would allow “more predictable scheduling of major expenditures.”

Lee Will, director of the Department of Administrative Services, testified in support and said the amendment would create a repository of software subscriptions and hardware for agencies that would allow the state to negotiate better pricing and plan for cost escalations. “This data will allow decision makers insight into all current technological expenses,” Will said, arguing the fund would operate similarly to the Nebraska Capital Construction Fund by allowing IT expenditures to be tracked and saved over time to finance larger projects.

Committee members pressed witnesses on how the cash fund would be capitalized. Will said funding would likely depend on each project and could include general‑fund transfers or user fees, and he acknowledged the state might consider recurring rate structures to cover IT costs. One committee member raised the idea of a recurring “1% computer fee” as a potential funding mechanism; Will described that as a consideration within future rate structures rather than a settled plan.

Corey Steele, Nebraska’s state court administrator, testified in a neutral capacity that the courts support the concept but asked for more detail about governance. Steele urged “a co‑equal branch” approach so all branches of government have a seat at the table when priorities are set from the proposed fund. Steele also noted that many agencies already maintain inventories and that the bill would primarily add software to existing inventories.

The committee asked about cybersecurity and artificial intelligence. Will said cybersecurity would likely be handled by the Office of the Chief Information Officer (OCIO) and referenced a new JSOC discussed elsewhere as a mechanism to centralize endpoint protection; he said AI would be treated as software and could be included in agency requests.

The amendment sets a reporting schedule tied to the biennial budget cycle: agencies would submit the required reports by Sept. 15 in even‑numbered years to inform the next budget submission rather than retroactively altering the current biennium. The hearing record showed no committee vote; Chair Rob Clements closed the hearing after receiving online comments (proponent 0, opponent 1, neutral 0).

Next steps: The measure was heard in committee but not advanced during the session recorded in the hearing; committee staff and supporters said they expect to continue refining funding details, governance structure and the questionnaire that agencies will use to report inventory and risk information.