A BILL TO BE ENTITLED
AN ACT to establish the department of information technology as an independent agency and make the state chief information officer an independent executive officer subject to confirmation by the general assembly.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 143B‑6 reads as rewritten:
"§ 143B‑6.  Principal departments; other executive branch departments.
(a)	Principal Departments. – Except as provided by subsection (b) of this section, in addition to the principal departments enumerated in the Executive Organization Act of 1971, all executive and administrative powers, duties, and functions not including those of the General Assembly and its agencies, the General Court of Justice and the administrative agencies created pursuant to Article IV of the Constitution of North Carolina, and higher education previously vested by law in the several State agencies, are vested in the following principal departments:
(1)	Department of Natural and Cultural Resources.
(2)	Department of Health and Human Services.
(3)	Department of Revenue.
(4)	Department of Public Safety.
(5)	Repealed by Session Laws 2012‑83, s. 48, effective June 26, 2012.
(6)	Department of Environmental Quality.
(7)	Department of Transportation.
(8)	Department of Administration.
(9)	Department of Commerce.
(10)	Community Colleges System Office.
(11)	Repealed by Session Laws 2012‑83, s. 48, effective June 26, 2012.
	
(13)	Department of Military and Veterans Affairs.
(b)	Other Departments. – In addition to the principal departments enumerated in subsection (a) of this section, these other executive branch departments shall act independently of the Governor and General Assembly, under the sole authority of the designated department head:
(1)	Department of Information Technology."
SECTION 2.  G.S. 143B‑1320(a)(18) reads as rewritten:
"(18)	State Chief Information Officer or State CIO. – The head of the Department, who is an independent officer."
SECTION 3.  G.S. 143B‑1322(a) reads as rewritten:
"§ 143B‑1322.  State CIO duties; Departmental personnel and administration.
(a)	State CIO. – The State Chief Information Officer (State CIO) is the head of the Department. The State CIO shall be qualified by education and experience for the office. The State CIO shall be nominated by the Lieutenant Governor subject to confirmation by the General Assembly. The term of office of the State CIO shall be for five years; the first full term shall begin July 1, 2017. The salary of the State CIO shall be set by the General Assembly in the Current Operations Appropriations Act. The State CIO shall receive longevity pay on the same basis as is provided to employees of the State who are subject to the North Carolina Human Resources Act.
The Lieutenant Governor shall submit the name of the person to be appointed, for confirmation by the General Assembly, to the President Pro Tempore of the Senate and the Speaker of the House of Representatives by May 1, 2017, and thereafter by May 1 of the year in which the then current term expires. If the Lieutenant Governor does not submit the name by that date, the President Pro Tempore of the Senate and the Speaker of the House of Representatives shall submit a name to the General Assembly for confirmation.
In the event of a vacancy, the Lieutenant Governor shall submit the name of a successor to the President of the Senate and the Speaker of the House of Representatives within four weeks after the vacancy occurs. If the Lieutenant Governor does not do so, the President of the Senate and the Speaker of the House of Representatives shall submit a name to the General Assembly for confirmation.
(b)	Departmental Personnel. – The State CIO may appoint one or more deputy State CIOs, each of whom shall be under the direct supervision of the State CIO. The salaries of the deputy State CIOs shall be set by the State CIO. The State CIO and the Deputy State CIOs are exempt from the North Carolina Human Resources Act. The State CIO may appoint or designate managerial and policy making positions, including, but not limited to, the Department's chief financial officer and general counsel, each of whom shall be exempt from the North Carolina Human Resources Act.
(c)	Administration. – The Department shall be managed under the administration of the State CIO. The State CIO shall have the following powers and duty to do all of the following:
(1)	Ensure that executive branch agencies receive all required information technology support in an efficient and timely manner.
(2)	Ensure that such information technology support is provided to local government entities and others, as appropriate.
(3)	Approve the selection of the respective agency chief information officers.
(4)	As required, plan and coordinate information technology efforts with State agencies, nonprofits, and private organizations.
(5)	Ensure the security of State information technology systems and networks, as well as associated data, developing standardized systems and processes.
(6)	Prepare and present the Department's budget in accordance with Chapter 143C of the General Statutes, the State Budget Act.
(7)	Establish rates for all goods and services provided by the Department within required schedules.
(8)	Identify and work to consolidate duplicate information technology capabilities.
(9)	Identify and develop plans to increase State data center efficiencies, consolidating assets in State‑managed data centers.
(10)	Plan for and manage State network development and operations.
(11)	Centrally classify, categorize, manage, and protect the State's data.
(12)	Obtain, review, and maintain, on an ongoing basis, records of the appropriations, allotments, expenditures, and revenues of each State agency for information technology.
(13)	Be responsible for developing and administering a comprehensive long‑range plan to ensure the proper management of the State's information technology resources.
(14)	Set technical standards for information technology, review and approve information technology projects and budgets, establish information technology security standards, provide for the procurement of information technology resources, and develop a schedule for the replacement or modification of information technology systems.
(15)	Require reports by State departments, institutions, or agencies of information technology assets, systems, personnel, and projects; prescribe the form of such reports; and verify the information when the State CIO determines verification is necessary.
(16)	Prescribe the manner in which information technology assets, systems, and personnel shall be provided and distributed among agencies.
(17)	Establish and maintain a program to provide career management for information technology professionals.
(18)	Prescribe the manner of inspecting or testing information technology assets, systems, or personnel to determine compliance with information technology plans, specifications, and requirements.
(19)	Supervise and support the operations of the CGIA, GICC, GDAC, CJIN, and 911 Board.
(20)	Oversee and coordinate an Education Community of Practice.
(21)	Repealed by Session Laws 2016‑94, s. 7.14(d), effective July 1, 2016.
(d)	Budgetary Matters. – The Department's budget shall incorporate information technology costs and anticipated expenditures of State agencies identified as participating agencies, together with all divisions, boards, commissions, or other State entities for which the principal departments have budgetary authority. The Department shall submit its proposed budget to the Office of State Budget and Management and the Governor shall incorporate it into the Governor's budget.
(e)	State Ethics Act. – All employees of the Department shall be subject to the applicable provisions of the State Government Ethics Act under Chapter 138A of the General Statutes."
SECTION 4.  G.S. 143B‑1342 reads as rewritten:
"§ 143B‑1342.  Dispute resolution.
(a)	Agency Request for Review. – In any instance where the Department has denied or suspended the approval of an information technology project, has cancelled the project, or has denied an agency's request for deviation, the affected State agency may request that the State CIO review the decision. The agency shall submit a written request for reconsideration within 15 business days following the agency's receipt of the Department's written grounds for denial, suspension, or cancellation. The agency's request for reconsideration shall specify the grounds for its disagreement with the Department's determination.
(b)	Review Process. – 
The State CIO may reverse or modify a decision of the Department when the State CIO finds the Department's decision is unsupported by substantial evidence that the agency project fails to meet one or more standards of efficiency and quality of State government information technology as required under this Article."
SECTION 5.  G.S. 143B‑1335 reads as rewritten:
"§ 143B‑1335.  Financial reporting and accountability for information technology investments and expenditures.
The Department, along with the Office of State Budget and Management and the Office of the State Controller, shall develop processes for budgeting and accounting of expenditures for information technology operations, services, projects, infrastructure, and assets for State agencies, notwithstanding any exemptions or deviations permitted pursuant to G.S. 143B‑1320(b) or (c). The budgeting and accounting processes may include hardware, software, personnel, training, contractual services, and other items relevant to information technology and the sources of funding for each. Annual reports regarding information technology shall be coordinated by the Department with the Office of State Budget and Management and the Office of the State Controller and submitted to the Governor, the Lieutenant Governor, and the General Assembly on or before October 1 of each year.
The State CIO shall not enter into any information technology contracts requiring agency financial participation without obtaining written agreement from participating agencies regarding apportionment of the contract costs.
The State CIO shall review the information technology budgets for participating agencies and shall recommend appropriate adjustments to support requirements identified by the State CIO."
SECTION 6.  G.S. 126‑5(d)(1) reads as rewritten:
"(d)	(1)	Exempt Positions in Cabinet Department. – Subject to the provisions of this Chapter, which is known as the North Carolina Human Resources Act, the Governor may designate a total of 1,500 exempt positions throughout the following departments and offices:
a.	Department of Administration.
b.	Department of Commerce.
c.	Repealed by Session Laws 2012‑83, s. 7, effective June 26, 2012, and by Session Laws 2012‑142, s. 25.2E(a), effective January 1, 2013.
d.	Department of Public Safety.
e.	Department of Natural and Cultural Resources.
f.	Department of Health and Human Services.
g.	Department of Environmental Quality.
h.	Department of Revenue.
i.	Department of Transportation.
j.	Repealed by Session Laws 2012‑83, s. 7, effective June 26, 2012, and by Session Laws 2012‑142, s. 25.2E(a), effective January 1, 2013.
	
l.	Office of State Budget and Management.
m.	Office of State Human Resources.
n.	Department of Military and Veterans Affairs."
SECTION 7.  In order to maintain continuity and management of State information technology services, the State Chief Information Officer (State CIO) serving when this act becomes law shall serve an interim term expiring June 30, 2017. The interim State CIO has all of the powers and duties conferred by law.
SECTION 8.  This act is effective when it becomes law.