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View NCGA Bill Details2015-2016 Session
House Bill 208 (Public) Filed Wednesday, March 11, 2015
Intro. by Saine, Tine, B. Brown.

Status: Ref To Com On Appropriations (House Action) (Mar 12 2015)

SOG comments (1):

Identical bill

Bill as filed is identical to S 268 as filed 3/11/15.

Bill History:

H 208

Bill Summaries:

  • Summary date: Mar 11 2015 - View Summary

    Part I.

    States the General Assembly's findings about consolidating information technology functions and resources under a new Department of Information Technology (Department). States that the Department's purpose is to ensure efficient and effective use of information technology operations, management, and resources and states how the purpose will be achieved.

    Part II. 

    Establishes the Department as a single, unified cabinet-level department that consolidates information technology functions, powers, duties, obligations, and services existing within the principal departments. Transfers all information technology functions, powers, duties, obligations, and services vested in the state entities in GS 143B-6 to the Department and makes additional specified Type I and Type II transfers from the Office of Information Technology Services to the Department.

    Amends GS 143B-2 to specify that the Executive Organization Act of 1973 applies to the Department. Amends GS 143B-6 to add the Department to the list of principal departments. 

    Repeals Article 3D (State Information Technology Services) of GS Chapter 147.

    Enacts new Article 14, Department of Information Technology, in GS Chapter 143B, providing as follows. Specifies terms and their definitions for use in the Article, including information technology. Requires the Secretary of Information Technology (Secretary) to be qualified by education and experience for the office and to be appointed by and serve at the pleasure of the Governor. Specifies other parameters governing the Secretary's salary and duties. Requires the Department to be funded through appropriations, the Information Technology Fund, and operation of an internal service fund for receipts. 

    Exempts the General Assembly, Judicial Department, and UNC and its constituent institutions from the Article but allows those entities to elect to participate in the Department's programs, services, or contracts. Allows agencies to apply to the Secretary to deviate from the Article's Part 3, Shared Information Technology Services, or Part 5, Information Technology Procurement. Specifies further actions depending on whether the request to deviate is granted or denied. 

    Sets out authority and guidance for hiring employees, appointing deputy secretaries, and designating other positions in the Department. 

    Requires the Secretary to develop policies for agency information technology planning and financing to achieve the purposes of the act. Requires agencies to submit plans that are required in the act. Requires the Department to analyze the state's legacy information technology systems and develop a plan to ascertain the needs, costs, and time frame required for state agencies to efficiently use information technology systems, resources, security, and data management to achieve the legislative purposes of this act. Requires the Secretary to develop a biennial State Information Technology Plan (Plan) to be transmitted to the General Assembly in conjunction with the Governor's budget of each regular session. Specifies items that must be included in the Plan. Requires the Secretary to develop one or more strategic plans for information technology. 

    Establishes the Information Technology Fund, which may receive transfers or other credits as authorized by the General Assembly. Includes provisions concerning appropriating money from the Fund, expenditures, and interest earnings.

    Requires the Secretary to report quarterly to the Joint Legislative Oversight Committee on Information Technology and to the Fiscal Research Division regarding the Fund no later than the first day of the second month following the end of the quarter. Specifies items to be included in the report. Requires the Secretary to report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on expenditures for the upcoming quarter, the projected year‑end balance, and the status report on personnel position changes, including new positions created and existing positions eliminated. Requires the Secretary, by October 1 of each year, to submit to the Joint Legislative Oversight Committee on Information Technology a report on all expenditures involving funds appropriated to the Department from the Information Technology Fund for the preceding fiscal year.

    Requires the Department, along with the Office of State Budget and Management and the Office of the State Controller to develop budgeting and expenditure processes. Sets out additional requirements for those processes and establishes annual reporting requirements and deadlines.

    Requires principal departments and Council of State agencies to cooperate with the Department in efforts to encourage the use of small, minority, physically handicapped, and women contractors in achieving the purposes of this Article. Requires a vendor submitting a bid to disclose in a statement, provided contemporaneously with the bid, where services will be performed under the contract sought. Requires the Secretary to retain the statements required regardless of the state entity that awards the contract and report annually to the Secretary of Administration on the number of contracts which are anticipated to be performed outside the United States. Requires every state agency making a direct information technology purchase using the services of the Department of Information Technology to report directly to the Department of Administration. Requires the Department of Administration to report on that data annually to the Department of Information Technology.

    Requires the Department to operate a statewide electronic portal to (1) increase the convenience of members of the public in conducting online transactions with, and obtaining information from, state government and (2) facilitate their interactions and communications with government agencies. Requires the Secretary, beginning June 30, 2015, and then annually thereafter, to the General Assembly and to the Fiscal Research Division on specified information.

    Requires the Secretary to oversee the manner and means by which information technology business and disaster recovery plans for the principal department and Council of State agencies are created, reviewed, and updated. Specifies information that must be completed when developing the plans.

    Specifies eight Department duties, including submitting all rates and fees for common, shared, and state government‑wide technology services provided by the Department to the Office of State Budget and Management for approval; adopting plans, policies, and procedures for the acquisition, management, and use of information technology resources in state agencies; and developing and promoting training programs to efficiently implement, use, and manage information technology resources throughout state government.

    Requires the Secretary to exercise authority for telecommunications and other communications relating to the internal management and operations of state agencies. Specifies ten actions that the Secretary must take.

    Requires the Secretary to provide local governments with access to communications systems or services established by the Department for State agencies on the same cost basis that applies to state agencies. Also requires the Secretary to establish broadband communications services and allow specified organizations and entities to share on a not‑for‑profit basis. Provides, however, that communications or broadband telecommunications services provided under the statute does not cause the State or the Department to be classified as a public utility nor as a retailer. Also prohibits the State or the Department from engaging in any activities that may cause those entities to be classified as a common carrier. Authority to share communications services with the specified entities terminates no later than one year from the effective date of a tariff for such service or federal law that preempts this statute.

    Requires the Secretary to review all information technology projects for the principal departments and Council of State agencies. Requires approval by the Secretary before proceeding with a project. Allows the Secretary to suspend project approval. Requires all contracts between an agency and a private party for information technology projects to include provisions for vendor performance review and accountability, contract suspension or termination, and funding termination.

    Provides that any state agency developing and implementing an information technology project with a total cost of ownership in excess of $5 million may be required by the Secretary to engage the services of private counsel or subject matter experts with the appropriate information technology and intellectual property expertise; this requirement may also apply to information technology programs that are separated into individual projects if the total cost exceeds $5 million. 

    Requires each agency to provide personnel to participate in information technology project management, implementation, testing, and other activities. Requires agency personnel to provide periodic reports, which include specified information, to the assigned project management assistant. Specifies requirements for assigning project managers and sets out their duties. 

    Allows an affected state agency to request a committee review of the Secretary's decision when the Secretary has denied or suspended the approval of an information technology project or has denied an agency's request for deviation. Specifies the procedure for requesting review. Sets out the membership of the review committee and committee process. Sets out the conditions under which the committee may reverse or modify a decision of the Secretary. Allows the Department to go before a panel consisting of the State Treasurer, the State Controller, and the State Budget Officer, or their designees, to resolve disputes concerning services, fees, and charges incurred by Council of State agencies receiving information technology services from the Department. Requires the State Treasurer to adopt rules for the dispute resolution process. The decisions of the panel are to be final in the settlement of all fee disputes that come before it. 

    Requires the Department to procure all information technology for principal department and Council of State agencies and sets out factors that must be considered during that process. Sets out six related Department responsibilities. Contract information compiled by the Department is to be made a matter of public record after the award of contract. Allows the Secretary to authorize the use of the electronic procurement system to conduct reverse auctions (as defined) and electronic bidding. Sets out additional conditions concerning reverse auctions and electronic bidding. Requires the Secretary to establish procedures for the procurement of information technology. Allows the Secretary to require agencies to submit information technology procurement requests to the Department on October 1, January 1, and June 1, or another regularly occurring schedule, of each fiscal year in order to allow for bulk purchasing. Makes all offers to contract to be subject to evaluation and selection by acceptance of the most advantageous offer to the state. Sets out items that must be considered in the evaluation. Sets outs exceptions to the competitive bidding requirements. 

    Requires all state agencies covered by this Article to use contracts for information technology established by the Department. Allows local governments (as defined) to use the information technology programs, services, or contracts offered by the Department in accordance with the statutes, policies, and rules of the Department.

    Makes it unlawful for any person, by the use of the powers, policies, or described procedures to purchase, attempt to purchase, procure, or attempt to procure any property or services for private use or benefit. Specifies instances when the prohibition does not apply. Violations are a Class 1 misdemeanor. Makes any employee or official of the State who commits a violation be liable to the state to repay any amount expended, together with any court costs.

    Provides that neither the Secretary, any deputy secretary, nor any other policy‑making or managerially exempt personnel can be financially interested, or have any personal beneficial interest in the purchase of, or contract for, any information technology, nor in any firm, corporation, partnership, or association furnishing any information technology to the state government, or any of its departments, institutions, or agencies, and prohibits any of these persons or any other Department employee from accepting or receiving from any person, firm, or corporation to whom any contract may be awarded, by rebate, gifts, or otherwise, any money or anything of value whatsoever, or any promise, obligation, or contract for future reward or compensation. Violation of this section is a Class F felony, and any person found guilty of a violation must be removed from state office or employment. Requires the Secretary to require bidders to certify that each bid on information technology contracts overseen by the Department is submitted competitively and without collusion; false certification is a Class I felony.

    Requires an award recommendation to be submitted to the Secretary for approval or other action when the dollar value of a contract for the procurement of information technology equipment, materials, and supplies exceeds the benchmark established by GS 143B‑1317. Sets out actions that must be taken by the Secretary on the recommendation. Requires the Secretary to report, including specified information, on all contract awards approved through the Statewide Procurement Office. 

    Requires the Attorney General, at the Secretary's request, to provide legal advice and services as necessary.

    Prohibits a state agency, local political subdivision of the state, or other public body from purchasing computer equipment or televisions or enter into a contract with any manufacturer that the Secretary determines is not in compliance with statutory requirements as determined from the list provided by the Department of Environment and Natural Resources. Requires the Secretary to issue written findings upon a determination of noncompliance, which is reviewable.

    Requires state and local governmental entities to be given the option of purchasing refurbished computer equipment from registered computer equipment refurbishers. Requires documentation of resulting savings to be reported quarterly to the Department. Sets out further requirements concerning the refurbished computer equipment program, which is to be administered by the Statewide Procurement Office. Requires the Department to report the results of the initiative to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division by March 1, 2016, and then quarterly thereafter.

    Requires the Secretary to establish standards for information technology security, to be revised annually. Sets out further provisions concerning the purchase of security goods and software, risk assessments, contracts for assessment of network vulnerability, and exceptions. Requires the assessment of agency compliance with the security standards and requires agencies to cooperate with the Secretary by providing specified information.

    Part III.

    Requires the Department, along with the Office of State Budget and Management and the State Controller, to develop and implement a plan to manage all information technology funding, as soon as practicable. Requires: (1) funding for information technology resources, projects, and contracts to be appropriated to and managed by the Department; (2) funding for Department Shared Services and approved contracts to remain with the agencies; and (3) information technology budget codes and fund codes to be created as required.

    Transfers all employees and all positions in state agencies identified as principal departments in GS 143B‑6 who serve in the position of, or exercise responsibilities for, information technology described in this act to the Department. Specifies that the transfers of those employees does not affect any individual employee's current compensation or benefits.

    Effective July 1, 2015.

    Part IV. 

    Makes conforming changes to GS 66-58.20, 136-89.194, 138A-3, 143-129, 143C-3-3, 150B-21.1, 150B-38, and 143-59.1. Amends GS 143C-3-3 to expand upon the information that must be included in a request by a state agency for significant state resources for acquiring, operating, or maintaining information technology. Specifies statutes that are amended to replace "Office of Technology Services" with "Department of Information Technology Services" and those amended to replace "State Chief Information Officer" with "Secretary of Information Technology Services." Provides further authority and instruction to the Revisor of Statutes.

    Part V. 

    Provides that no action or proceeding pending on July 1, 2015, brought by or against the Department is affected by any provision of this act, but the same may be prosecuted or defended in the name of the Department. Requires, in these actions and proceedings, that the Department be substituted as a party upon proper application to the courts or other public bodies.

    Allows any business or other matter undertaken or commanded by the Department regarding any state program, office, or contract or pertaining to or connected with its respective functions, powers, obligations, and duties that are pending on the date this act becomes effective to be conducted and completed by the Department in the same manner and under the same terms and conditions and with the same effect as if conducted and completed by the former commission, director, or office.

    Provides that unless otherwise specifically provided by this act, any previous assignment of duties within the purview of this act by the Governor or General Assembly have continued validity.

    Part VI.

    Except as otherwise provided, effective when the act becomes law.