Bill Summary for S 212 (2019-2020)

Summary date: 

Jun 26 2020

Bill Information:

View NCGA Bill Details2019-2020 Session
Senate Bill 212 (Public) Filed Monday, March 11, 2019
AN ACT TO FUND VARIOUS CAPITAL AND REPAIRS AND RENOVATIONS PROJECTS FOR STATE AGENCIES AND THE UNIVERSITY OF NORTH CAROLINA; TO ENACT VARIOUS STATUTORY CHANGES RELATING TO FUNDING, COMMENCING, AND ADMINISTERING CAPITAL PROJECTS FROM THE STATE CAPITAL AND INFRASTRUCTURE FUND; TO ESTABLISH PILOT PROGRAMS AND A SATELLITE-BASED BROADBAND GRANT PROGRAM WITHIN THE DEPARTMENT OF INFORMATION TECHNOLOGY; TO STREAMLINE LEASES AND LEASE RENEWALS FOR BROADBAND INFRASTRUCTURE; TO MAKE APPROPRIATIONS TO THE DEPARTMENT OF INFORMATION TECHNOLOGY; AND TO CREATE A STATUTORY DEFINITION FOR "YEAR-ROUND SCHOOL."
Intro. by Krawiec, Hise.

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Bill summary

Conference report to the 6th edition makes the following changes. Deletes the content of the 6th edition and replaces it with the following.

Section 1

Transfers $104 million in nonrecurring funds from the General Fund to the State Capital and Infrastructure Fund for 2020-21. Assigns project codes to agency capital improvement projects for allocation references in the act and for intended future legislative support. Appropriates the transferred funds to the Office of State Budget and Management (OSBM) for 2020-21 to be allocated in specified amounts to six identified projects, including OSBM's Freedom Park Project, OSBM Repairs and Renovations, UNC Chapel Hill's Business School and Nursing School Renovation, NCSU's STEM Building, and UNC Asheville's Woods Residence Hall. Provides the following specifications for each project. 

Requires OSBM to provide a grant to the NC Freedom Park to build a sculpture park on land specified land in downtown Raleigh. Requires the NC Historical Commission to review and approve any monuments or sculptures prior to placement. Conditions expending the funds upon the NC Freedom Park raising $1.7 million in matching funds.

Regarding allocations for the UNC Business School, requires UNC to commit to providing a match of at least $75 million from non-State sources by June 30, 2022.

Regarding allocations for NCSU's STEM Building, requires NCSU to commit to providing a match of at least $80 million from non-State sources by June 30, 2022.

Provides restrictions for the allocations to UNC-Asheville, restricting funds to expenses incurred to meet building requirements. 

Effective July 1, 2020.

Section 2

Allocates additional funds in specified amounts to the UNC and NCSU projects, and OSBM's repairs and renovations, if Section 3.3 of HB 1023 becomes law, with a $31.5 million additional transfer to the State Capital and Infrastructure Fund for 2020-21. Effective July 1, 2020.

Section 3

Of the funds allocated to OSBM's repairs and renovations, requires $2.5 million allocation to Fayetteville State University's Dormitory Renovation and Removal, with the remaining funds allocated at 40% for UNC constituent institution repairs and renovations determined by the Board of Governors (BOG) and 60% for repairs and renovations for State agencies, excluding UNC. Provides for reporting by OSBM and the BOG. 

Provides for funds from claim settlements or other aid or assistance to be spent before funds allocated by the act. 

Effective July 1, 2020.

Section 4

Amends GS 143C-8-13 to authorize the chancellor of a constituent institution of UNC to pay for capital improvement projects with funds available to the institution whereby (1) the total project costs do not exceed $600,000 and the projects are of the 13 types permitted under the statute, regardless of whether the facilities and related infrastructure are supported form the General Fund or the State Capital and Infrastructure Fund; (2) the institution reports to the Board of Governors (BOG) and specified NCGA division on projects undertaken pursuant to this authority, with specified content included, on a quarterly basis; and (3) funds from a General Fund appropriation that are contractually obligated for a project pursuant to this authority remain available to fund the completion of the project. Requires the BOG to negatively weight the availability of non-State resources and carryforward funds available for repairs and renovations in making campus allocations of funds for capital improvements, and include information about the manner of compliance of this provision with any reporting required by the statute. Makes conforming changes.

Amends GS 143C-8-7 to authorize the Department of Agriculture and Consumer Services (DACS) to use the specified types of available funds under the statute to build equipment structures that meet the description contained in GS 143-138(b4)(1)c. (providing a State Building Code exemption for certain farm buildings which are unoccupied structures built upon State land and administratively allocated to DACS or NC State University and used primarily for forestry production and research or agriculture production and research) on an as-needed basis. Caps such authorized project costs at $125,000.

Enacts GS 143C-8-7.1 to establish procedures for legislative appropriations for capital improvements. Restricts uses to constructing, repairing, or renovating State buildings, utilities, and other capital facilities; for acquiring sites for them where necessary; and for acquiring buildings and land for State government purposes or other authorized purposes. Requires allotments to be issued by the Director of the Budget (Director) upon compliance with the act and prohibits unreasonably withholding allotments. Requires prior approval of the Director for projects financed with self-liquidating appropriations, and requires the Director to report such approval to the specified NCGA committee. Requires expenditures for fixed and movable equipment and furnishings to be approved by the Director prior to commitment of funds; does not require transfer to construction accounts unless at the direction of the Director. Sets project completion requirements and design costs consistent with appropriations provided. Requires disbursement of funds from the Fund for legislatively authorized projects as needed to initiate or advance a capital project, with funds authorized for a particular project remaining in the Fund until disbursement is necessary to satisfy financial obligations for the project.

Amends GS 143C-8-12 and GS 143C-3-3 to clarify that neither statute prohibits BOG expenditures or requests for planning for a project legislatively authorized and funded with an allocation from the Fund.

Amends GS 143C-4-3.1, which governs the Fund, to explicitly allow funds of the Fund to be used for broadband infrastructure projects funded through appropriations to the Growing Rural Economies with Access to Technology Fund, and for projects and grants identified in the Current Operations Appropriations Act or authorized and funded by an act of the NCGA. Adds that funds appropriated for a project that are unspent and unencumbered upon completion revert to the Fund. Adds new authority for OSBM to reallocate appropriations from the Fund between projects to meet cash flow requirements for a project so long as five specified criteria are met, including that the amount reallocated cannot be used to expand the scope of the project and a project cannot begin until the fiscal year legislatively authorized.

Amends GS 143-341 to modify the powers and duties of the Department of Administration regarding certification that the statement of needs for projects, other than a project of UNC for which advance planning has not been completed, is feasible. Now excludes from the Department's certification duties requests for appropriations below the formal project limit set by the State Building Commission, rather than below $100,000.

Amends GS 116-30.3 by increasing the amount that can be carried forward by UNC from 2.5 to 5 percent of the General Fund appropriation for budget codes for (1) each special responsibility constituent institution, (2) the Area Health Education Centers of UNC-Chapel Hill, and (3) UNC System Office Budget Code 16010. Adds that up to 2.5% of carried forward funds must be used for one-time expenditures for projects eligible to receive funds under GS 143C-8-13(a) (concerning projects for which funds for repairs and renovations may be used), with one-half of any funds carried forward in a budget code in excess of 2.5 percent required to be disbursed to the constituent institution at BOG discretion, with the remaining being retained in that budget code.

Section 5

Directs the Information Technology Innovation Center (Center) to create a cybersecurity pilot program to establish and utilize public-private partnerships to provide cybersecurity support services from participating vendors to eligible counties. Requires the Center to receive proposals and establish agreements with vendors. Details vendor requirements, including that the vendor demonstrate the capability to provide services to counties designated as development tier one or tier two areas, and requiring projects and services to integrate with existing State cybersecurity infrastructure and share resulting data with the State. Requires the Center to develop criteria for eligible counties to demonstrate need and capacity to participate in the program by March 31, 2021. Annually thereafter, requires the Center to report to the specified NCGA committee and division on the program.

Section 6

Directs the Department of Information Technology (DIT) to establish a program and project management improvement pilot program as detailed in Section 6 of the act. Requires the State Chief Information Officer to adopt and oversee mandatory agency-wide standards, policies, and guidelines for program and project management; issue Departmental regulations and mandatory standards; conduct periodic and annual Departmental reviews; and establish and periodically update a five-year strategic plan for program and project management. Directs the Deputy CIO to designate a Program Management Improvement Director to be charged with implementation of mandatory program management policies and development of a written strategy for enhancing the role of program managers within the DIT, as specified. Requires the Deputy CIO to issue regulations within 270 days of the act becoming effective, addressing the the required skill set and competencies, job series, career path, and certification of program and project managers in DIT. By July 1, 2021, requires DIT to report to the specified NCGA committee and division on the pilot program. Details reporting requirements.

Section 7

Enacts GS 143B-1374, creating the Satellite-Based Broadband Grant Fund (Fund) within DIT. Provides that funds in the Fund do not revert, and that appropriated funds to the Fund are considered an information technology project for specified state law purposes. 

Provides for the DIT Secretary to prescribe and accept applications and sets forth grant application requirements. Directs DIT's Broadband Infrastructure Office (Office) to give priority to applicants that will provide access to the greatest number of unserved households, as defined, to exclude households awarded a grant from the Growing Great Rural Economies with Access to Technology (GREAT) program. Grants highest priority to satellite-based providers proposing the provision of broadband service to the greatest number of unserved households situated in census tracts that have been identified as significantly unserved by the Office, even if the proposed area contains portions of households with broadband service. Defines broadband service to mean internet access service, regardless of the technology or medium used to provide the service, with transmission speeds that are equal to or greater than the requirements for the minimum performance tier and with latency equal to or lesser than the requirements for low latency, as both metrics are provided in the identified FCC report, released February 7, 2020. Caps the aggregate amount of total liability for the grants awarded at $4 million, and the total annual liability for grants awarded in a single calendar year at $2.5 million. Provides a formula for grant amounts. 

Restricts grant award eligibility to the household maintaining broadband service with the grantee for at least 83% of the year the grantee seeks the award. Caps the total grant award for a single unserved household at $500. Requires grantees to annually submit documentation to the Office for verification of eligibility of subscriptions. 

Requires the Office to enter into an agreement with each grantee that meets 17 specifications, including (1) the total number of unserved households the grantee anticipates subscribing to its broadband service; (2) a requirement that the grantee maintain its service to the area, or another Office approved area, for at least five years; and (3) a provision describing grant measurement and administration. Deems the agreements binding upon the State and not subject to legislative appropriations of State funds.

Authorizes the Office to reduce the grant, amend agreement terms, or terminate the agreement if the grantee breaches the agreement. Mandates termination if the Office finds that the grantee manipulated or attempted to manipulate data to increase the amount of the grant, in addition to recapturing grant funds disbursed in the corresponding year. 

Requires grantees to certify availability of the proposed minimum upstream and downstream broadband speeds throughout the project area during the term of the agreement prior to any end user connection. Conditions annual disbursement upon annual certification of compliance with the agreement. Requires Office access to evidence for compliance verification.

Provides for accounting and distribution of grant funds. States legislative intent to appropriate sufficient funds to the program to meet anticipated cash requirements each fiscal year.

Requires that grantees include the proposed advertised minimum download and maximum upload speeds and subscription costs in the application for a five-year agreement. Requires annual attestation to the availability of speeds specified, or faster speeds, in the agreement, and reporting of any changes to data caps for the project that differ from the grant application.

Requires annual reporting by the grantee for the duration of the agreement. Specifies required content of the reports.

Establishes an annual reporting requirement for DIT to report to the specified NCGA committee and division, by September 1, with six required components regarding the program.

Caps the total annual liability for grants for the 2020 calendar year at $1 million.

Section 8

Amends GS 146-29.2(b1), concerning leases or interest in real property of the State for the purposes of the construction and placement of broadband infrastructure. Adds new provisions regarding determinations for dispositions made under the subsection. Requires the Department of Administration (Department) to prepare and finalize a lease agreement within four months of receiving the lease application by the controlling agency. Requires the controlling agency to coordinate with the Department in preparing a complete application package for the lease request. Requires the Department to enter into the lease pursuant to the terms of the application after four months have elapsed and the application has not been finalized.

For renewals, requires the Department to prepare and finalize the lease agreement within two months of receiving the request, and if the Department fails to do so, provides for the current lease to continue until the lease is finalized. Requires the Department to coordinate with the Department of Information Technology to develop a streamlined lease development process. Requires all State agencies including the UNC System Office to cooperate with and participate in the streamlined lease development process.

Effective July 1, 2020, and applies to applications for new leases and lease renewals on or after that date. Expires on January 1, 2025.

Section 9

Reduces the specified Fund Code for transfer to the IT Reserve Fund by $12,250,000 in nonrecurring funds for the 2020-21 fiscal year, and increases the appropriation to the Enterprise Security and Risk Management Office in that amount on a nonrecurring basis for the 2020-21 fiscal year. 

Of the funds available to the Enterprise Security and Risk Management Office, makes appropriations in specified amounts for the following purposes: implementation of the cybersecurity pilot program required in Section 5 of the act, allocation to Gaston College to use to found the Carolina Cyber Network, enhancement of Statewide cybersecurity, and funding the Satellite-Based Broadband Fund.

Section 10

Amends GS 115C-84.2 to define year-round school to mean a school with a single- or multi-track instructional calendar to provide instructional days throughout the entire school calendar year, beginning July 1 and ending June 30, by using at least one of three specified plans, including (1) four staggered student group assignments; (2) 45 instructional days followed by 15 vacation days, repeated; and/or (3) five nine-week sessions with students attending four assigned and staggered sessions. Applies beginning with the 2021-22 school year. 

Section 11

Reenacts and incorporates the State Budget Act, GS Chapter 143C.

Deems departmental receipts appropriated for the 2020-21 fiscal year to implement the act. 

Provides for the continued validity of 2019 Regular Session legislation expressly appropriating funds to a State entity covered by the act except where expressly repealed or amended.

Makes conforming changes to the act's titles.

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