GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 394

Short Title:  Amend Duties of State Controller/AB.	(Public)

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Sponsors: Representatives Dickson; Buchanan and McMahan.

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Referred to:  Public Utilities.

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March 9, 1995

A BILL TO BE ENTITLED
AN ACT TO AMEND THE STATE CONTROLLER'S DUTIES WITH RESPECT TO TELECOMMUNICATIONS AND OTHER SERVICES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 143B-426.39 reads as rewritten:
"§ 143B-426.39.  Powers and duties of the State Controller.
The State Controller shall:
(1)	Prescribe, develop, operate, and maintain in accordance with generally accepted principles of governmental accounting, a uniform state accounting system for all state agencies. The system shall be designed to assure compliance with all legal and constitutional requirements including those associated with the receipt and expenditure of, and the accountability for public funds.
(2)	On the recommendation of the State Auditor, prescribe and supervise the installation of any changes in the accounting systems of an agency that, in the judgment of the State Controller, are necessary to secure and maintain internal control and facilitate the recording of accounting data for the purpose of preparing reliable and meaningful statements and reports. The State Controller shall be responsible for seeing that a new system is designed to accumulate information required for the preparation of budget reports and other financial reports.
(3)	Maintain complete, accurate and current financial records that set out all revenues, charges against funds, fund and appropriation balances, interfund transfers, outstanding vouchers, and encumbrances for all State funds and other public funds including trust funds and institutional funds available to, encumbered, or expended by each State agency, in a manner consistent with the uniform State accounting system.
(4)	Prescribe the uniform classifications of accounts to be used by all State agencies including receipts, expenditures, assets, liabilities, fund types, organization codes, and purposes. The State Controller shall also, after consultation with the Office of State Budget and Management, prescribe a form for the periodic reporting of financial accounts, transactions, and other matters that is compatible with systems and reports required by the State Controller under this section. Additional records, accounts, and accounting systems may be maintained by agencies when required for reporting to funding sources provided prior approval is obtained from the State Controller.
(5)	Prescribe the manner in which disbursements of the State agencies shall be made, in accordance with G.S. 143-3.
(6)	Operate a central payroll system, in accordance with G.S. 143-3.2 and 143-34.1.
(7)	Keep a record of the appropriations, allotments, expenditures, and revenues of each State agency, in accordance with G.S. 143-20.
(8)	Make appropriate reconciliations with the balances and accounts kept by the State Treasurer.
(9)	Develop, implement, and amend as necessary a uniform statewide cash management plan for all State agencies in accordance with G.S. 147-86.11.
(9a)	Implement a statewide accounts receivable program in accordance with Article 6B of Chapter 147 of the General Statutes.
(10)	Prepare and submit to the Governor, the State Auditor, the State Treasurer, and the Office of State Budget and Management each month, a report summarizing by State agency and appropriation or other fund source, the results of financial transactions. This report shall be in the form that will most clearly and accurately set out the current fiscal condition of the State. The State Controller shall also furnish each State agency a report of its transactions by appropriation or other fund source in a form that will clearly and accurately present the fiscal activities and condition of the appropriation or fund source.
(11)	Prepare and submit to the Governor, the State Auditor, the State Treasurer, and the Office of State Budget and Management, at the end of each quarter, a report on the financial condition and results of operations of the State entity for the period ended. This report shall clearly and accurately present the condition of all State funds and appropriation balances and shall include comments, recommendations, and concerns regarding the fiscal affairs and condition of the State.
(12)	Prepare on or before October 31 of each year, a Comprehensive Annual Financial Report of the preceding fiscal year, in accordance with G.S. 143-20.1.
(13)	Perform additional functions and duties assigned to the State Controller, within the scope and context of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes.
(14)	With respect to State agencies, exercise general coordinating authority for all telecommunications matters relating to the internal management and operations of these agencies. In discharging that responsibility the State Controller may in cooperation with affected State agency heads, do such of the following things as he deems necessary and advisable:
a.	Provide for the establishment, management, and operation, through either State ownership or commercial leasing, of the following systems and services as they affect the internal management and operation of State agencies:
1.	Central telephone systems and telephone networks;
2.	Data communications network systems;
	4.	Satellite services;
5.	Video services;
6.	Wireless services;
7.	Microwave systems;
8.	Related systems based on telecommunication technologies.
b.	With the approval of the Information Resource Management Commission, coordinate the development of cost-sharing systems for respective user agencies and develop rates that charge the respective users for their proportionate parts of the cost of development, implementation, maintenance and operation of the systems and services listed in item 'a.' of this subdivision.
c.	Manage the development of coordinated telecommunications services or systems within and among all State agencies and implement, where appropriate, cooperative utilization of telecommunication facilities by aggregating users.
d.	Perform traffic analysis and engineering for all telecommunications services and systems listed in item 'a.' of this subdivision.
e.	Pursuant to G.S. 143-49, establish telecommunications specifications and designs so as to promote and support compatibility of the systems within State agencies.
f.	Pursuant to G.S. 143-49 and G.S. 143-50, coordinate the review of requests by State agencies for the procurement of telecommunications systems or services.
g.	Pursuant to G.S. 143-341 and Chapter 146 of the General Statutes, coordinate the review of requests by State agencies for State government property acquisition, disposition, or construction for telecommunications systems requirements.
h.	Provide a periodic inventory of telecommunications costs, facilities, systems, and personnel within State agencies.
i.	Promote, coordinate, and assist in the design and engineering of emergency telecommunications systems, including but not limited to the 911 emergency telephone number program, Emergency Medical Services, and other emergency telecommunications services.
j.	Perform frequency coordination and management for State agencies and local governments, including all public safety radio service frequencies, in accordance with the rules and regulations of the Federal Communications Commission or any successor federal agency.
k.	Advise all State agencies on telecommunications management planning and related matters and provide through the State Personnel Training Center or the State Information Processing Services training to users within State agencies in telecommunications technology and systems.
l.	Assist and coordinate the development of policies and long-range plans, consistent with the protection of citizens' rights to privacy and access to information, for the acquisition and use of telecommunications systems; and base such policies and plans on current information about State telecommunications activities in relation to the full range of emerging technologies.
m.	Work cooperatively with the North Carolina Agency for Public Telecommunications in furthering the purpose of this subdivision.
n.	Provide access to the State's telecommunications services to all eligible users on a cost-shared basis.  All State agencies shall participate in cost-shared services.  This participation requires that all commissions paid on telecommunications services and all telecommunications access agreement fees, either originating or terminating, paid as a result of a contract involving a State agency shall be paid directly to the Office of the State Controller and the funds generated from these commissions and access agreements shall be used to lower the cost of the service from which the commissions or fees were generated or to develop new cost-shared telecommunications services.  The provisions of this subsection shall not apply to funds generated as a result of payphone commissions in the Department of Correction or to funds generated in association with student long-distance services in The University of North Carolina System.
	The provisions of this subdivision shall not apply to the Criminal Information Division of the Department of Justice or to the Judicial Information System in the Judicial Department.
(15)	Provide the Microelectronics Center of North Carolina ('MCNC'), cities, counties, and other local governmental units with access to a central telecommunications system or service established under subdivision (14) of this section for State agencies. Access shall be provided on the same cost basis that applies to State agencies.
(16)	Establish Synchronous Optical Network/Asynchronous Transfer Mode ('SONET/ATM') telecommunications services and interoperable gateway services and permit in addition to State agencies, cities, counties, and other local government units, the following organizations and entities to share on a not-for-profit basis:
a.	Nonprofit educational institutions;
	c.	Research affiliates of MCNC for use only in connection with research activities sponsored or funded, in whole or in part, by MCNC, if such research activities relate to health care or education in North Carolina;
d.	Agencies of the United States government operating in North Carolina for use only in connection with activities that relate to health care or education in North Carolina; or
e.	Hospitals, clinics, and other health care facilities for use only in connection with activities that relate to health care or education in North Carolina.
	Provided, however, that sharing of the SONET/ATM telecommunications services and interoperable gateway services by State agencies with entities or organizations in the categories set forth herein shall not cause the State, the Office of State Controller, or the MCNC to be classified as a public utility as that term is defined in G.S. 62-3(23)a.6. Nor shall the State, the Office of State Controller, or the MCNC engage in any activities that may cause those entities to be classified as a common carrier as that term is defined in the federal Communications Act of 1934, 47 U.S.C. § 153(h). Provided further, authority to share the SONET/ATM telecommunications services and interoperable gateway services with the non-State agencies set forth above in subdivision (16)a. through subdivision (16)e. shall terminate one year from the effective date of a general subscribers' tariff that provides equivalent or greater capability to communicate on a statewide basis with State agencies, entities defined in subdivision (15) of this section, and non-State agencies set forth in subsections a. through e. of subdivision (16) of this section, without compromising the security of access to the State's data communications networks and computer systems or allowing the unauthorized use of State resources.  The security capabilities shall not require the State to expend State resources to implement or maintain.  The filer of such a general subscribers' tariff shall provide to the Office of the State Controller a documented plan that clearly defines how the service will ensure the security of the State's network without requiring the State to expend resources, and the Office of the State Controller shall agree that the plan is valid and has been implemented before the authority to share the service is terminated."
   		Sec. 2.  This act is effective upon ratification.