GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	3 

SENATE BILL 315
Government Performance Audit Select Committee Substitute Adopted 4/1/93
Third Edition Engrossed 5/13/93

Short Title:  GPAC/Info. Tech. Briefings.  	(Public)
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Sponsors:
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Referred to:  Appropriations.
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February 23, 1993

A BILL TO BE ENTITLED
AN ACT TO IMPLEMENT RECOMMENDATIONS OF THE GOVERNMENT PERFORMANCE AUDIT COMMITTEE RELATING TO INFORMATION TECHNOLOGY, TELECOMMUNICATIONS, PURCHASE AND CONTRACT, ECONOMIC DEVELOPMENT, AND RELATED GENERAL GOVERNMENT MATTERS.
The General Assembly of North Carolina enacts:

PART I––INFORMATION TECHNOLOGY

Section 1.  The State Information Processing Services (hereafter referred to as  "SIPS" ) shall prepare and document a plan for developing and implementing a technically competent and adequately staffed performance analysis and capacity planning operation for its information systems and telecommunications networks.  As part of its plan, SIPS shall propose to the Information Resource Management Commission (hereafter referred to as "IRMC" ) the implementation of the computer programs necessary to support performance analysis and capacity planning operations.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.1.  SIPS shall evaluate and simplify its procedures and processes for billing customers for use of its services.  SIPS shall submit a plan for implementing the new billing procedures and processes to the IRMC for approval and implementation not later than July 1, 1993.
Sec. 1.2.  SIPS shall evaluate and redesign the billing report format that it provides to its customers in order to meet their information needs.  SIPS shall submit a plan for implementing the new billing report format to the IRMC for approval and implementation not later than July 1, 1993.
Sec. 1.3.  The IRMC shall adopt not later than July 1, 1993, written procedures for setting rates charged to customers of the SIPS computing, consulting, telecommunications, and related services.
Sec. 1.4.  SIPS shall prepare an evaluation of costs and benefits of implementing leasing as a financing strategy for purchasing its mainframe computers.  This evaluation shall include an analysis of the requirements for annual reserve fund accumulations at SIPS and the effect on total billing rates for SIPS' client agencies.  This evaluation shall include an analysis of any statutory changes or constitutional changes that would be required to permit such leasing procedures for mainframe computers.  SIPS shall submit the report to the Office of State Budget and Management, the Office of State Controller, the IRMC, and the Joint Legislative Commission on Governmental Operations not later than July 1, 1993.
Sec. 1.5.  SIPS shall develop a written plan for a program to provide technical leadership and support in a variety of information technologies to agencies throughout State government.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.6.  SIPS shall prepare a written plan for developing and implementing a training program that will focus its training services in information technologies, software tools, and technical management techniques in which its clients have growing needs.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.7.  SIPS shall prepare a written plan for setting technical standards for the design, development, and implementation of all new application systems to be run at its data center.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.8.  SIPS shall prepare a written plan for (i) evaluating the support it provides to Local Area Network (hereafter referred to as "LAN" ) clients and users in State agencies, (ii) determining the most appropriate levels of LAN support it can provide to State agencies, and (iii) deploying LANs in State agencies where LANs are determined to be needed and useful.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.9.  SIPS shall prepare a written plan for updating its LAN guidelines and standards in such a manner that will support alternative approaches to designing and implementing LANs in State agencies.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.10.  SIPS shall prepare a written plan for providing training for its staff and for preparing standards and procedures to be used in computer-aided software engineering applications development at SIPS.  SIPS shall present the written plan to the IRMC for approval not later than December 31, 1993, and shall implement the plan upon this approval.
Sec. 1.11.  SIPS shall develop a written plan for providing service to its customers that incorporates SIPS needs to be competitive in the total costs of such services to SIPS customers.  The plan shall compare SIPS service plans and capabilities with services from alternative sources of technology, such as purchase of service from commercial vendors and purchase of agency computers and networks that are smaller than mainframes.  SIPS shall present the written plan to the IRMC for approval not later than September 1, 1993.
Sec. 1.12.  SIPS shall develop a written plan (i) for instituting a client service management program and (ii) for instituting procedures for improving its relations with all of its customers.  SIPS shall submit the written plan to the IRMC for approval not later than September 1, 1993, and shall implement the plan upon this approval.
Sec. 1.13.  SIPS shall develop specific measures of service performance that are oriented to meeting the needs of its clients and shall develop written service level agreements for committing to meet these performance standards when requested to do so by a user of SIPS services.  SIPS shall submit the measures of service performance and its plans for instituting service level agreements with clients to the IRMC for approval not later than September 1, 1993, and shall begin the service level agreement process upon approval of its plan by the IRMC. 
Sec. 1.14.  The IRMC shall develop a written plan and guidelines for agencies to adopt a uniform set of policies, procedures, and standards relating to the procurement, management, and use of information and telecommunications technology.  The IRMC shall present the written plan and guidelines to the Joint Legislative Commission on Governmental Operations not later than September 30, 1993.
Sec. 1.15. The IRMC shall develop a written plan for encouraging and assisting agencies to link their information technology plans to their program objectives throughout the agency.  The IRMC shall deliver its written plan to the Joint Legislative Commission on Governmental Operations not later than September 30, 1993.
Sec. 1.16. The IRMC shall develop a written plan and procedure by which every agency under its jurisdiction shall submit its information technology plans for review and comment by either IRMC staff or information resource managers selected by the IRMC from at least two other agencies.  The purpose of these reviews shall be to:
(1)	Familiarize agencies with other agencies' information technology operations, and 
(2)	Provide constructive reviews and suggestions for agencies' information technology operations.
The plan and procedure developed by the IRMC shall result in every agency under its jurisdiction having its information technology plans reviewed at least once every three years.  The IRMC shall deliver the written plan for this review procedure to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993. 
Sec. 1.17. SIPS shall prepare a written plan for linking its strategic and operational plans to the information technology plans and policies of its customers and client agencies. SIPS shall deliver this plan to the IRMC not later than December 31, 1993, and shall implement the plan upon receiving approval of the plan.
Sec. 1.18.  SIPS shall develop a written plan to strengthen its problem reporting operations.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.19.  SIPS shall develop a plan for a quality assurance operation inside its organizational structure.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993. 
Sec. 1.20.  SIPS shall develop a plan to combine the two sides of its mainframe computer into a single image system.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.21.  SIPS shall develop a plan to make operational a fully functional change management system concerning its computer resources, telecommunications resources, and consulting services.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.   
Sec. 1.22.  SIPS shall prepare a written plan for a version/release approach to maintaining all production systems on SIPS' mainframe computers.  The plan shall cover production systems maintained either by SIPS or by the agencies using the SIPS mainframe computers.  SIPS shall present the written plan to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.23.  SIPS shall prepare a documented plan for a training program to cross-train its system programmers to provide more backup staff resources for critical systems products and applications.  SIPS shall present the written plan concerning the training program to the IRMC for approval and implementation not later than December 31, 1993.
Sec. 1.24.  SIPS shall update all job title classifications for its employees, in conjunction with the Office of State Personnel, not later than December 31, 1993. 
Sec. 1.25.  The IRMC shall prepare and adopt a plan for sponsoring periodic briefings for senior executive agency officials, senior judicial branch officials, and members of the General Assembly on major topics, issues, trends, and developments in information technology.  
The IRMC shall present the plan for the briefings to the Joint Legislative Commission on Governmental Operations not later than July 1, 1993, and shall implement the plan, incorporating where possible and practicable any revisions suggested by the Joint Legislative Commission on Governmental Operations, immediately after the presentation.
The IRMC shall prepare and deliver a written report to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993, listing (i) the number of such briefings held during 1993, (ii) a brief description of the contents of the briefings, (iii) a list of persons from the three branches of government who attended the meetings, (iv) an evaluation of the effectiveness of the meetings, and (v) plans for future meetings.
Sec. 1.26.  The IRMC, working in coordination with the Office of State Personnel and the personnel officers in the executive agencies, shall develop a written plan for continuously updating information technology position descriptions at the State Information Processing Services and all executive agencies to reflect current qualifications requirements for those positions.  The IRMC shall present the results of the initial updating efforts and the plan for continuously revising and updating the position descriptions to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 1.27.  The IRMC shall develop a plan for relocating information systems technical staff positions, including but not limited to computer programmers, systems analysts, database administrators, and other data processing specialists, from the agencies in which they now work to the State Information Processing Services wherever feasible.
The plan shall detail (i) the financial savings of each proposed relocation, (ii) other benefits of the proposed centralization, and (iii) projected direct and indirect costs to the State of the proposed centralization.
The IRMC shall present this plan to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 1.28.  The IRMC shall develop a written policy that specifies the conditions under which an agency may purchase, implement, and use mainframe computer resources and telecommunications resources other than those provided by the State Information Processing Services.  The IRMC shall deliver the written policy to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 1.29.  The IRMC shall develop a written plan not later than December 31, 1993, for encouraging all State agencies to establish oversight of the information resource management function within the top management levels of each agency.  The IRMC shall present the plan to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 1.30.  The IRMC shall establish policies and guidelines for disaster recovery plans and operations at SIPS.  These policies and guidelines shall be established not later than June 30, 1993.
Sec. 1.31.  The IRMC shall establish policies and guidelines for State agencies to follow in developing disaster recovery plans and operations.  The IRMC shall present these policies and guidelines to the Joint Legislative Commission on Governmental Operations not later than June 30, 1993.
Sec. 1.32.  SIPS shall prepare a report on steps it has taken to develop a contract for full-facility disaster recovery services, commonly referred to as a "hot site" facility, that will provide disaster recovery coverage for critical applications on the State computer center's mainframe computer and network as well as disaster recovery coverage for critical applications on other State mainframe computers.  SIPS shall deliver the report to the IRMC not later than July 31, 1993.
Sec. 1.33.  All State departments under the jurisdiction of the IRMC shall submit to the IRMC their plans for participating in and using the SIPS contract for hot site disaster recovery services to recover any of their applications that are determined by the IRMC or the SIPS hot site contract to be critical to the operations of State government.  The State departments shall submit these plans to the IRMC not later than July 31, 1993.
Sec. 1.34.  The IRMC shall develop procedures for requiring agencies to submit plans for purchasing and using personal computers and workstations before authorizing the agencies to purchase these devices.  The IRMC shall present its draft procedures, including drafts of any legislation that would be required to prohibit agency purchases of personal computers and workstations without plans approved by the IRMC, to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 1.35.  The Fiscal Research Division of the Legislative Services Office shall develop a procedure for funding information technology and telecommunications projects that extend more than two years.  The procedure shall include recommendations for any needed changes in the rules of the Senate and House of Representatives, changes in the operation and procedures of budget, appropriations, and finance committees, and changes in the statutes that would be necessary to encourage or permit funding information systems and telecommunications projects that extend more than two years.
The Fiscal Research Division shall deliver its draft procedure for approval to the Legislative Services Commission not later than December 31, 1993.
Sec. 1.36.  Not later than July 1, 1993, the Department of Environment, Health, and Natural Resources, the Department of Human Resources, the Department of Public Instruction, the Department of Revenue, the Department of State Treasurer, the Department of Transportation, the Employment Security Commission, and the Administrative Office of the Courts shall deliver written reports to the Information Resource Management Commission on actions they have taken to address each of the findings and recommendations  concerning the management and operation of their respective information systems, as published in the North Carolina General Assembly's Government Performance Audit Committee's Performance Audit of Information Technology and Telecommunications, Volume II, December 1992.
Sec. 1.37.  Not later than July 1, 1993, the Legislative Automated Systems Division in the Legislative Services Office shall deliver a written report to the Legislative Services Commission on actions that staff division has taken to address each of the findings and recommendations concerning the management and operation of the North Carolina General Assembly's information systems, as published in the North Carolina General Assembly's Government Performance Audit Committee's Performance Audit of Information Technology and Telecommunications, Volume II, December 1992.  This report shall contain any written response to the audit prepared by the Legislative Automated Systems Division, but not included in the North Carolina General Assembly's Government Performance Audit Committee's Performance Audit of Information Technology and Telecommunications, Volume II, December 1992.
Sec. 1.38.  Not later than December 31, 1993, the Department of Environment, Health, and Natural Resources, the Department of Human Resources, the Department of Public Instruction, the Department of Revenue, the Department of State Treasurer, the Department of Transportation, the Employment Security Commission, and the Administrative Office of the Courts shall deliver written, updated reports to the Information Resource Management Commission on actions they have taken to address each of the findings and recommendations  concerning the management and operation of their respective information systems, as published in the North Carolina General Assembly's Government Performance Audit Committee's Performance Audit of Information Technology and Telecommunications, Volume II, December 1992.
Sec. 1.39.  Not later than December 31, 1993, the Legislative Automated Systems Division in the Legislative Services Office shall deliver a written, updated report to the Legislative Services Commission on actions that staff division has taken to address each of the findings and recommendations concerning the management and operation of the North Carolina General Assembly's information systems, as published in the North Carolina General Assembly's Government Performance Audit Committee's Performance Audit of Information Technology and Telecommunications, Volume II, December 1992.

PART II––TELECOMMUNICATIONS

Sec. 2.  G.S. 143B-426.21 reads as rewritten:
"§ 143B-426.21.  Information Resource Management Commission.
	(a)	Creation; Membership. – The Information Resource Management Commission is created in the Office of the State Controller. The Commission consists of the following members:
(1)	Four members of the Council of State, appointed by the Governor.
(2)	The Secretary of Administration.
(3)	The State Budget Officer.
(4)	Two members of the Governor's cabinet, appointed by the Governor.
(5)	One citizen of the State of North Carolina with a background in and familiarity with information systems or telecommunications, appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120-121.
(6)	One citizen of the State of North Carolina with a background in and familiarity with information systems or telecommunications, appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121.
(7)	The Chair of the Governor's Committee on Data Processing and Information Systems.
(8)	The Chair of the State Information Processing Services Advisory Board.
Members of the Commission shall not be employed by or serve on the board of directors or other corporate governing body of any information systems, computer hardware, computer software, or telecommunications vendor of goods and services to the State of North Carolina.
The two initial cabinet members appointed by the Governor and the two initial citizen members appointed by the General Assembly shall each serve a term beginning September 1, 1992, and expiring on June 30, 1995. Thereafter, their successors shall be appointed for four-year terms, commencing July 1.  Members of the Governor's cabinet shall be disqualified from completing a term of service of the Commission if they are no longer cabinet members.
The appointees by the Governor from the Council of State shall each serve a term beginning on September 1, 1992, and expiring on June 30, 1993.  Thereafter, their successors shall be appointed for four-year terms, commencing July 1.  Members of the Council of State shall be disqualified from completing a term of service on the Commission if they are no longer members of the Council of State.
Vacancies in the two legislative appointments shall be filled as provided in G.S. 120-122.
The Commission chair shall be elected in the first meeting of each calendar year from among the appointees of the Governor from the Council of State and shall serve a term of one year.  The Secretary of Administration shall be secretary to the Commission.
No member of the Information Resource Management Commission shall vote on an action affecting solely his or her own State agency.
(b)	Powers and Duties. – The Commission has the following powers and duties:
(1)	To develop, approve, and publish a statewide information technology strategy covering the current and following biennium that shall be updated annually and shall be submitted to the General Assembly on the first day of each regular session.
(2)	To develop, approve, and sponsor statewide technology initiatives and to report on those initiatives in the annual update of the statewide information technology strategy.
(3)	To review and approve biennially the information technology plans of the executive agencies, including their plans for the procurement and use of personal computers and workstations.
(4)	To recommend to the Governor and the Office of State Budget and Management the relative priorities across executive agency information technology plans.
(5)	To establish a quality assurance policy for all agency information technology projects, information systems training programs, and information systems documentation.
(6)	To establish and enforce a quality review and expenditure review procedure for major agency information technology projects.
(7)	To review and approve expenditures from appropriations made to the Office of State Budget and Management for the purpose of creating a Computer Reserve Fund.
(8)	To develop and promote a policy and procedures for the fair and competitive procurement of information technology consistent with the rules of the Department of Administration and consistent with published industry standards for open systems that provide agencies with a vendor-neutral operating environment where different information technology hardware, software, and networks operate together easily and reliably.
(9)	To prepare and maintain a statewide data security plan, including data security standards and security audit standards, to protect the integrity and confidentiality of sensitive data and communications that reside on the State's computers and that move through the State's telecommunications networks.
(c)	Meetings. – The Information Resources Management Commission shall adopt bylaws containing rules governing its meeting procedures.  The Information Resources Management Commission shall meet at least monthly.
(d)	Agency Information Resource Manager Reports. – Each executive agency shall designate in January of each year to the Information Resource Management Commission the senior staff member in the agency who serves as the Information Resource Manager in the agency.  Not later than the last business day of the first month of each calendar quarter, the Information Resource Manager in each agency shall deliver to the Commission a written report summarizing the agency's expenditures in the previous calendar quarter for information technology hardware, information technology software, telecommunications, information technology consulting services, information technology personnel, and other miscellaneous information technology expenses.  The report also shall contain brief descriptions of the major information technology initiatives undertaken in the previous calendar quarter and the tangible results from each initiative.
(e)	Agency Telecommunications Resource Managers. – Each State agency shall designate in January of each year one of its employees or officials to the Information Resource Management Commission as the Telecommunications Resource Manager for the agency.  The person designated by the agency as the Telecommunications Resource Manager may be the same person designated as the agency Information Resource Manager.  Any State advisory board or commission that makes recommendations to the State Information Processing Service concerning the operation of its computer and telecommunications resources shall include at least two members from the persons who have been designated as agency telecommunications resource managers.
(f)	State Information Processing Services Telecommunications Plans. –  The State Information Processing Services (hereafter 'SIPS') shall submit an annual telecommunications plan, including plans for the expenditures and operations of the State Telecommunications System, to the first regularly scheduled meeting of the Information Resource Management Commission each year.  The Commission shall incorporate information that it deems relevant and useful from this annual telecommunications plan in the annual statewide information technology strategy presented to the General Assembly on the first day of each regular session.
SIPS shall submit a strategic plan for State telecommunications to the first regularly scheduled meeting of the Information Resource Management Commission each year.  The strategic plan shall include statements of direction for the development of voice, data, and video technology to be made available to State government through the State Telecommunications System in the coming three to five years.  The strategic telecommunications plan shall summarize its anticipated costs and benefits to State government and the citizens of North Carolina.  The Commission shall incorporate information that it deems relevant and useful from this strategic telecommunications plan in the annual statewide information technology strategy presented to the General Assembly on the first day of each regular session.
(g)	Risk Notifications. –  The Information Resources Management Commission shall establish and maintain procedures for periodically identifying (i) agencies facing risks to the continuing operation of their information technology systems or (ii) agencies facing risks to the successful implementation of new information technology applications.  Any agency identified and notified by the Commission as facing risks under this subsection shall prepare a written plan to reduce and eliminate these risks.  The affected agencies shall deliver their plans to the Commission not later than 90 days after receiving the notification from the Commission."
Sec. 2.1.  The Information Resource Management Commission (hereafter referred to as "IRMC" ) shall prepare and adopt, not later than December 31, 1993, written guidelines that specify those responsibilities that pertain to the operation of the State Telecommunications System (hereafter referred to as "STS" ) and those responsibilities that pertain to the operation of the State agency telecommunications functions.
Sec. 2.2.  The State Information Processing Services (hereafter referred to as "SIPS" ) shall prepare a plan for the delivery of telecommunications services to State agencies and include in the plan techniques for ensuring that State agency user needs are given priority over the interests of telecommunications equipment and service vendors.  SIPS shall present the plan for delivery of telecommunications services to the IRMC not later than December 31, 1993.
Sec. 2.3.  SIPS, in consultation with major users, shall prepare a plan for implementing its "bandwidth on demand" concept and submit the plan to the IRMC not later than December 31, 1993.
Sec. 2.4.  The IRMC shall prepare a plan for consolidating any multiple voice, video, and data networks within or across State agencies that it deems appropriate to consolidate after the completion and receipt of reports required under this act.  Upon adoption of the plan, the IRMC shall present the plan to the Joint Legislative Commission on Governmental Operations.
Sec. 2.5.  SIPS shall evaluate and revise its telecommunications disaster recovery plan and coordinate that plan with the disaster recovery plan for the State computer center.  SIPS shall present its revised telecommunications disaster recovery plan to the Information Resources Management Commission not later than December 31, 1993.
Sec. 2.6.  The IRMC and The University of North Carolina jointly shall prepare a written evaluation of the costs, benefits, and feasibility of migrating the portions of The University of North Carolina Education Computing Service's (hereafter referred to as "UNCECS" ) wide area network that are currently being upgraded by the UNCECS onto the STS's North Carolina Integrated Network (hereafter referred to as "NCIN" ) and the Microelectronics Center of North Carolina (hereafter referred to as "MCNC" ) CONCERT data network.  The IRMC and The University of North Carolina shall jointly present the written evaluation to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 2.7.  The IRMC and the Administrative Office of the Courts jointly shall prepare a written evaluation of the costs, benefits, and feasibility of transferring ownership of the Administrative Office of the Courts' network back to the ownership and management of the State Telecommunications System.  The evaluation shall include an independent study to determine whether incremental operating costs (including incremental overhead costs) are lower under STS, and a service level agreement between STS and the Administrative Office of the Courts that meets the Administrative Office of the Courts' requirements for network service.  The IRMC and the Administrative Office of the Courts jointly shall present the written evaluation to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 2.8.  The IRMC and the MCNC jointly shall prepare a written evaluation of the costs, benefits, and feasibility of moving ownership and management of the MCNC CONCERT data network, that can be efficiently managed and supported by the STS, over to the STS North Carolina Integrated Network.  The IRMC and the MCNC jointly shall present the written evaluation to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 2.9.  The IRMC and the Department of Justice jointly shall investigate the costs, benefits, and feasibility of transferring the Department of Justice's Police Information Network to the ownership or management of the STS North Carolina Integrated Network.  This evaluation shall include investigation of the technical ability of maintaining network security for the Police Information Network, as required by federal government rules and regulations, on a shared physical communications network.  The IRMC and the Department of Justice jointly shall present a written report on the results of the investigation to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 2.10.  The IRMC, the Department of Administration Agency for Public Telecommunications, and the University of North Carolina Center for Public Television jointly shall develop a written plan and timetable to promote the sharing of facilities and telecommunications resources between the Agency for Public Telecommunications and the University of North Carolina Center for Public Television.  The IRMC, the Department of Administration Agency for Public Telecommunications, and the University of North Carolina Center for Public Television jointly shall present the written plan and timetable to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 2.11.  The IRMC shall prepare a written plan to establish stronger centralized governance over its wide area communications networks.  The plan shall include involvement of three organizational components: (i) a Director of Statewide Telecommunications, (ii) a Telecommunications Advisory Board, and (iii) an expansion of IRMC membership to include at least one telecommunications official in State government.  The plan for stronger centralized governance shall apply to the wide area communications networks only as the transport mechanism to move information.  The IRMC shall present the written plan to the Joint Legislative Commission on Governmental Operations not later than September 30, 1993.
Sec. 2.12.  The IRMC and the STS, in consultation with major users, shall prepare a written needs assessment, requirements analysis, and feasibility study for migrating networks to a new broadband technology that will support activities including, but not limited to, greater use of local area network interconnections, geographic information systems, image processing, video conferencing, State and county library interconnections, and educational television.  The written plan shall include an assessment of demand for the increased bandwidth, a comprehensive cost analysis of migrating to a new broadband technology, an assessment of broadband technology's reliability in actual operation, and an assessment of the ability of technology vendors to deliver the network as it has been proposed.  The IRMC shall present the written needs assessment, requirements analysis, and feasibility plan to the Joint Legislative Commission on Governmental Operations not later than September 30, 1993.
Sec. 2.13.  The Microelectronics Center of North Carolina shall prepare a written needs assessment, requirements analysis, and feasibility study for replacing and expanding its analog microwave segments with optic fiber provided by a common carrier.  Among its topics, the reports shall address current capacity constraints, anticipated capacity constraints over the next five years, and realistic, anticipated demand growth over the next five years.  The MCNC shall deliver the written needs assessment, requirements analysis, and feasibility study to the IRMC and the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 2.14.  The IRMC shall direct an evaluation of the three pilot projects currently underway on two-way video teleconferencing for distance learning and remote medical diagnosis.  The State shall not replace the funding of the pilot projects from the current grantors or sponsors before the completion of the evaluation, which shall (i) examine the findings and conclusions of the distance learning pilot projects, and (ii) validate the pilot projects' effectiveness in supporting training in schools, homes, and State agencies.
Sec. 2.15.  The IRMC shall direct the Agency for Public Telecommunications in preparing a written needs assessment, requirements analysis, feasibility study, and documented demand analysis of the Agency for Public Telecommunications' proposal to broadcast gavel-to-gavel coverage of General Assembly sessions.  The IRMC and the Agency for Public Telecommunications shall deliver the written report, along with recommendations of the IRMC, to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 2.16.  The University of North Carolina shall prepare a written plan for upgrading The University of North Carolina Education Computing Services' LINCNET (i) to support greater bandwidth applications, such as file/catalog transfer, and (ii) to be compatible with the Triangle-area library network, consisting of Duke University, North Carolina State University, and the University of North Carolina at Chapel Hill.  The University of North Carolina shall deliver the written plan to the Joint Legislative Commission on Governmental Operations not later than December 31, 1993.
Sec. 2.17.  The State Telecommunications System shall develop a written plan to pursue a single statewide Centrex tariff with each of the current geographic carriers.  The STS shall deliver the written plan to the IRMC not later than December 31, 1993.
Sec. 2.18.  The State Telecommunications System shall develop a plan and a draft request for proposal for a single bulk discount agreement with the long-distance InterExchange Carrier voice telecommunications service.  The STS shall deliver the written plan and draft request for proposal to the IRMC for approval not later than December 31, 1993.

PART III––PURCHASE AND CONTRACT

Sec. 3.  The Secretary of Administration shall study the manner in which purchase and contract bid protests are handled for State departments and agencies, public schools, and community colleges and shall make findings on the following: (i) whether there should be a uniform procedure applicable to all bid protests, (ii) whether bid protests should be appealed pursuant to Chapter 150B of the General Statutes (Administrative Procedures Act), and (iii) the extent to which the State Purchasing Office should be involved with bid protests.  The Secretary shall submit findings and recommendations to the General Assembly for approval prior to March 15, 1994.
Sec. 3.1.  G.S. 143-49 reads as rewritten:
"§ 143-49. Powers and duties of Secretary.
The Secretary of Administration shall have power and authority, and it shall be his duty, subject to the provisions of this Article:
(1)	To canvass sources of supply, and to purchase or to contract for the purchase, lease and lease-purchase of all supplies, materials, equipment and other tangible personal property required by the State government, or any of its departments, institutions or agencies under competitive bidding or otherwise as hereinafter provided.
(2)	To establish and enforce specifications or standards that shall apply to all supplies, materials and equipment to be purchased or leased for the use of the State government or any of its departments, institutions or agencies. The Secretary shall develop a program for prioritizing the commodities for which specifications or standards need to be developed according to the existing demand for the commodities and the current volume of purchases of the commodities.  The Secretary shall also consider the adoption of specifications or standards that have been developed or adopted by other governmental entities.
(3)	To purchase or to contract for, by sealed, competitive bidding or other suitable means, all contractual services and needs of the State government, or any of its departments, institutions, or agencies; or to authorize any department, institution or agency to purchase or contract for such services.
	   When the award of any contract for contractual services exceeding a cost of one hundred thousand dollars ($100,000) requires negotiation with prospective contractors, the Secretary shall request and the Attorney General shall assign a representative of the office of the Attorney General to assist in negotiation for the award of the contract. It shall be the duty of such representative to assist and advise in obtaining the most favorable contract for the State, to evaluate all proposals available from prospective contractors for that purpose, to interpret proposed contract terms and to advise the Secretary or his representatives of the liabilities of the State and validity of the contract to be awarded. All contracts and drafts of such contracts shall be prepared by the office of the Attorney General and copies thereof shall be retained by such office for a period of three years following the termination of such contracts. The term 'contractual services' as used in this subsection shall mean work performed by an independent contractor requiring specialized knowledge, experience, expertise or similar capabilities wherein the service rendered does not consist primarily of acquisition by this State of equipment or materials and the rental of equipment, materials and supplies. The term 'negotiation' as used herein shall not be deemed to refer to contracts entered into or to be entered into as a result of a competitive bidding process.
(3a)	To monitor the purchasing activity of the State and its departments, institutions, and agencies and to require standardized periodic reporting on the volume of purchases by commodity, service, and vendor category, and the volume of purchases under term contract and open-market procedures.  The Secretary shall compile and analyze the data no less than annually.
		The Secretary shall also conduct a biennial management review of the purchasing operations in State government and in each of its departments, institutions, and agencies to assure that they are using effective and efficient purchasing practices in accordance with law.  The Secretary may recommend measures to improve purchasing operations.
		The Secretary shall report his findings and recommendations under this subdivision to the Governor and the General Assembly on an annual basis.
(3b)	To develop and implement innovative procurement practices so as to reduce the cost of ordering supplies and services, reduce the volume of inventory maintained by State departments and agencies, and increase the quality of products purchased.  These innovative procurement practices may include (i) requiring State departments and agencies to order items from prime vendors for delivery at the time the items are needed instead of ordering for stock, when it is advisable to do so, and (ii) urging State departments and agencies to place orders with vendors electronically.
		The Secretary may appoint a task force to assist him in the implementation of this duty.
(4)	To have general supervision of all storerooms and stores operated by the State government, or any of its departments, institutions or agencies and to have supervision of inventories of all tangible personal property belonging to the State government, or any of its departments, institutions or agencies. The duties imposed by this subdivision shall not relieve any department, institution or agency of the State government from accountability for equipment, materials, supplies and tangible personal property under its control.
(5)	To make provision for or to contract for all State printing, including all printing, binding, paper stock and supplies or materials in connection with the same.
(6)	To make available to nonprofit corporations operating charitable hospitals, to local nonprofit community sheltered workshops or centers that meet standards established by the Division of Vocational Rehabilitation of the Department of Human Resources, to private nonprofit agencies licensed or approved by the Department of Human Resources as child placing agencies or residential child-care facilities, and to counties, cities, towns, governmental entities and other subdivisions of the State and public agencies thereof in the expenditure of public funds, the services of the Department of Administration in the purchase of materials, supplies and equipment under such rules, regulations and procedures as the Secretary of Administration may adopt. In adopting rules and regulations any or all provisions of this Article may be made applicable to such purchases and contracts made through the Department of Administration, and in addition the rules and regulations shall contain a requirement that payment for all such purchases be made in accordance with the terms of the contract. Prior to adopting rules and regulations under this subdivision, the Secretary of Administration may consult with the Advisory Budget Commission."
Sec. 3.2.  The General Assembly finds that the Division of Purchase and Contract of the Department of Administration needs information on commodities purchased by State departments and agencies on the open market and under term contract so that the Division can (i) determine expected volume of purchases by line items for new term contract solicitations, and (ii) oversee the use of term contracts and open-market purchases; therefore, the Office of State Controller shall give high priority to a management information system on purchase activity by State departments and agencies when it plans for the implementation of a new accounting system.  Until the State Controller has such a system in operation, the Division of Purchase and Contract of the Department of Administration shall direct all State departments and agencies to report to it on commodities purchased on the open market and under term contract, in accordance with G.S. 143-49(3a), and all State departments and agencies shall report as directed by the Division of Purchase and Contract.
Sec. 3.3.  The Secretary of Administration shall evaluate the need to reassign standards engineers within the Division of Purchase and Contract and shall make the reassignments as deemed appropriate.
Sec. 3.4.  Five authorized personnel positions for buyers in the Purchasing Section of the Division of Purchase and Contract of the Department of Administration are hereby redirected within the Department, at the direction of the Secretary of Administration, to assist the Department in carrying out the following duties:
(1)	Providing for the development and implementation of a management information system for oversight of purchase activity by State departments and agencies;
(2)	Assessing the efficiency of the Division of Purchase and Contract and providing planning for the Division;
(3)	Improving the program under which specification standards are developed for commodities purchased by the State;
(4)	Monitoring of innovative inventory strategies and inventory levels;
(5)	Enhancing communications and relationships between the Division of Purchase and Contract and the vendor and service provider communities.
Sec. 3.5.  Prior to March 15, 1994, the Office of State Budget and Management shall develop and propose to the General Assembly a policy and a program for contracting out to the private sector services traditionally performed by State employees.  The policy shall define the goals and objectives of a program for contracting out to the private sector, identify a strategy for implementation of the program, and assign responsibility for administration of the program to the Office of State Budget and Management.
The program to implement the policy shall consist of the following components:
(1)	The identification of the current functions and activities performed by the State that have the greatest potential to benefit from contracting out.  In making this determination, the Office of State Budget and Management shall consider whether (i) the service is available in the private sector, (ii) the demand for the service is increasing, decreasing, or remaining constant, (iii) management of the proposal can ensure quality, and (iv) outside cost is less expensive.  The Office of State Budget and Management shall also consider whether it would be feasible for the State to resume providing the service if contracting out the service proves unsatisfactory.
(2)	A framework for determining whether the identified functions should be contracted out.  This framework shall provide for (i) a study of the identified function by a task force made up of at least one representative of the Division of Purchase and Contract and one representative of each agency that will be using the service, (ii) the identification of direct service costs, overhead costs, and general administrative costs of the function being performed, (iii) the identification of the annual, one-time, and other costs to the State of contracting out, (iv) the disposition of any State assets used in the current process, and (v)  the determination of whether contracting out of the function would be financially beneficial.
The Office of State Budget and Management shall not implement the policy or any new program without the approval of the General Assembly.

PART IV––ECONOMIC DEVELOPMENT

Sec. 4.  The General Assembly finds that:
(1)	The Department of Administration is not a key player in economic development, yet it has the North Carolina Board of Science and Technology.
(2)	The North Carolina Board of Science and Technology and its attendant funding should be transferred to the Department of Commerce, whose major role is economic development.
Sec. 4.1.  The statutory authority, powers, duties, and functions, records, personnel, property, and unexpended balances of appropriations, allocations, or other funds of the North Carolina Board of Science and Technology are transferred from the Department of Administration to the Department of Commerce.
The transfer directed by this section shall include eight certified positions under General Fund program code 14100-1871 in the Department of Administration as well as all positions certified for the Board under Special Fund program code 24100-2873 in the Department of Administration.  The Office of State Budget and Management shall ensure that the transfer directed by this section is carried out.
Sec. 4.2.  Part 27 of Article 9 of Chapter 143B of the General Statutes, which consists of G.S. 143B-426.1, is recodified as Part 6A of Article 10 of Chapter 143B of the General Statutes, to consist of G.S. 143B-445.1.
Sec. 4.3.  G.S. 143B-445.1, as redesignated by Section 4.2 of this act, reads as rewritten:
"§ 143B-445.1.  North Carolina Board of Science and Technology.
(a)	The North Carolina Board of Science and Technology consists of the Governor, the Science Advisor to the Governor, and 17 members appointed as follows: the Governor shall appoint one member from the University of North Carolina at Chapel Hill, one member from North Carolina State University at Raleigh, and two members from other components of the University of North Carolina, all nominated by the President of the University of North Carolina; one member from Duke University, nominated by the President of Duke University; one member from a private college or university, other than Duke University, in North Carolina, nominated by the President of the Association of Private Colleges and Universities; one member from the Research Triangle Institute, nominated by the executive committee of the board of that institute; one member from the MCNC (Microelectronics Center of North Carolina), nominated by the executive committee of the board of that center; one member from the North Carolina Biotechnology Center, nominated by the executive committee of the board of that center; four members from private industry in North Carolina, at least one of whom shall be a professional engineer registered pursuant to Chapter 89C of the General Statutes or a person who holds at least a bachelors degree in engineering from an accredited college or university; and two members from public agencies in North Carolina.  Two members shall be appointed by the General Assembly, one shall be appointed upon the recommendation of the President of the Senate, and one shall be appointed upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121.  The nominating authority for any vacancy on the Board among members appointed by the Governor shall submit to the Governor two nominations for each position to be filled, and the persons so nominated shall represent different disciplines.
(b)	Members appointed to the Board by the General Assembly shall serve for two-year terms beginning 1 July of odd-numbered years.  Vacancies in appointments made by the General Assembly shall be filled in accordance with G.S. 120-122.  The two members from public agencies shall serve for terms expiring at the end of the term of the Governor appointing them.  The other 13 members appointed to the Board by the Governor shall serve for four-year terms, and until their successors are appointed and qualified.  Of those 13 members, six shall serve for terms that expire on 30 June of years that follow by one year those years that are evenly divisible by four, and seven shall serve for terms that expire on 30 June of years that follow by three years those years that are evenly divisible by four.  Any appointment to fill a vacancy on the Board created by the resignation, dismissal, death, or disability of a member shall be for the balance of the unexpired term.
(c)	The Governor shall serve as chair of the Board and shall designate the vice-chair from among the members of the Board.  The Science Advisor to the Governor shall serve as executive director of the Board.  The Secretary of Commerce or the Secretary's designee shall serve as secretary to the Board.
(d)	The Governor may remove any member of the Board from office in accordance with the provisions of G.S. 143B-16.
(e)	Members of the Board who are employees of State agencies or institutions shall receive subsistence and travel allowances authorized by G.S. 138-6.  Legislative members of the Board shall receive subsistence and travel allowances authorized by G.S. 120-3.1.
(f)	A majority of the Board constitutes a quorum for the transaction of business.
(g)	The Secretary of Commerce shall provide all clerical and other services required by the Board."
Sec. 4.4.  The General Assembly makes the following findings:
(1)	The Department of Commerce's Business and Industry Development Division (B&I) operates nine regional offices with a staff of 27 individuals and annual expenditures of about one million three hundred fifty thousand dollars ($1,350,000); the Department's Division of Community Assistance (DCA) operates seven regional offices with a staff of 29 individuals and annual expenditures of about one million six hundred thousand dollars ($1,600,000).
(2)	The assignment of counties to regions is not consistent within B&I and DCA of the Department of Commerce, and the two divisions do not effectively coordinate their work.
(3)	The current mission of the B&I offices is broad in scope and results in wide variations in workloads, priorities, and strategies across regional offices.
(4)	B&I regional office staff are pursuing projects that would be more effectively handled by central office staff.
(5)	Development of resources and community needs, and the emphasis on and quality of strategic planning, vary widely among regions and counties.
(6)	Some regional and community personnel perceive central office staff as keeping new industry prospects to themselves and favoring certain areas for location.
(7)	Dynamic multicounty alliances are neither congruent with regional office boundaries nor consistently addressed by B&I's strategy.
(8)	The flow of information within B&I lacks strategic focus and does not effectively utilize computerized data processing techniques.
(9)	A significant aspect of the regional office operations is obtaining information and services for existing and prospective industrial clients.  Currently each office maintains its own file of contact information and deals with each request for information and service from other agencies as an individual case.  Many of these requests are repetitive and could be handled by data system links or telephone access messages.  Others require personal contact that could be facilitated by designation and publication of the individuals to be contacted.
(10)	A single-source approach to answering questions about permits required for construction and expansion, training resources, potential financing, statutes, workplace regulations, and other subjects would greatly facilitate the ombudsman function.  Also, structured interdepartmental techniques for following up and expediting requests for action could both save staff time and improve services to the citizenry.
Sec. 4.5.  The Department of Commerce shall evaluate the present configuration of regional offices and develop a plan to consolidate the nine regional offices of the Business and Industry Division and the seven regional offices of the Division of Community Assistance into a smaller number of larger regional offices. The Department shall determine the appropriate number of offices and shall define a single set of regional boundaries to carry out the responsibilities.  The mission of the newly consolidated regional offices shall be long range community-oriented economic development, and a top priority of the offices shall be services to rural areas.  Activities of the Department and the regional offices shall include:
(1)	Implementation of strategies for providing leadership to multicounty economic alliances; such strategies might include exchange of information, joint planning within transportation corridors and aquifers, marketing initiatives, and coordination of services to existing industries.
(2)	Development of an integrated, fully automated data system to support regional office functions, and design and implementation of interdepartmental techniques to follow up on and expedite requests for information and services.
(3)	Consideration of the need for environmental engineering and other technical services; services might include utilizing the staff of regulatory agencies to provide technical assistance, budgeting funds for consultation fees, and technical training of regional staff.
Sec. 4.6.  The Department of Commerce shall report its findings and present a plan for consolidation to the General Assembly no later than May 1, 1994.
Sec. 5.  The Part headings contained in this act are for reference only and they in no way limit, define, or prescribe the scope or application of the text of the act.
Sec. 6.  Sections 3.3, 3.4, 4.4, 4.5, and 4.6 of this act become effective July 1, 1993.  The remainder of this act is effective upon ratification.