CONFORMING AND TECHNICAL CHANGES RELATING TO DEPARTMENT OF INFORMATION TECHNOLOGY

SECTION 7A.4.(a) G.S. 18C-114(b) reads as rewritten:

"(b) Article 3D of Chapter 147Article 14 of Chapter 143B of the General Statutes shall not apply to the Commission."

SECTION 7A.4.(b) G.S. 20-7(b2)(6) reads as rewritten:

"(6) To the Office of the State Chief Information Officer for the purposes of G.S. 143B-426.38A.G.S. 143B-1344."

SECTION 7A.4.(c) G.S. 20-43(a) reads as rewritten:

"(a) All records of the Division, other than those declared by law to be confidential for the use of the Division, shall be open to public inspection during office hours in accordance with G.S. 20-43.1. A signature recorded in any format by the Division for a drivers license or a special identification card is confidential and shall not be released except for law enforcement purposes. A photographic image recorded in any format by the Division for a drivers license or a special identification card is confidential and shall not be released except for law enforcement purposes or to the Office of the State Chief Information Officer for the purposes of G.S. 143B-426.38A.G.S. 143B-1344."

SECTION 7A.4.(d) G.S. 58-2-69(g) reads as rewritten:

"(g) The Commissioner may contract with the NAIC or other persons for the provision of online services to applicants and licensees, for the provision of administrative services, for the provision of license processing and support services, and for the provision of regulatory data systems to the Commissioner. The NAIC or other person with whom the Commissioner contracts may charge applicants and licensees a reasonable fee for the provision of online services, the provision of administrative services, the provision of license processing and support services, and the provision of regulatory data systems to the Commissioner. The fee shall be agreed to by the Commissioner and the other contracting party and shall be stated in the contract. The fee is in addition to any applicable license application and renewal fees. Contracts for the provision of online services, contracts for the provision of administrative services, and contracts for the provision of regulatory data systems shall not be subject to Article 3, 3C, or 8 of Chapter 143 of the General Statutes or to Article 3D of Chapter 147Article 14 of Chapter 143B of the General Statutes. However, the Commissioner shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subsection to the Attorney General or the Attorney General's designee for review as provided in G.S. 114-8.3; and (ii) include in all contracts to be awarded by the Commissioner under this subsection a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the contractor during and after the term of the agreement or contract to verify accounts and data affecting fees and performance. The

Commissioner shall not award a cost plus percentage of cost agreement or contract for any purpose."

SECTION 7A.4.(e) G.S. 62-3(23)i. reads as rewritten:

"i. The term "public utility" shall not include the State, the Office Department of Information Technology Services,Technology, or the Microelectronics Center of North Carolina in the provision or sharing of switched broadband telecommunications services with non-State entities or organizations of the kind or type set forth in G.S. 143B-426.39."

SECTION 7A.4.(f) G.S. 62A-41(a), recodified as G.S. 143B-1361(a) by this Part, reads as rewritten:

"(a) Membership. – The 911 Board is established in the Office Department of Information Technology Services.Technology. Neither a local government unit that receives a distribution from the fund under G.S. 62A-46 nor a telecommunication service provider may have more than one representative on the 911 Board. The 911 Board consists of 17 members as follows:

…."

SECTION 7A.4.(g) G.S. 66-58.20 reads as rewritten:

"§ 66-58.20. Development and implementation of Web portals; public agency links.

(a) The Office Department of Information Technology Services (ITS)(DIT) shall develop the architecture, requirements, and standards for the development, implementation and operation of one or more centralized Web portals that will allow persons to access State government services on a 24-hour basis. ITS DIT shall submit its plan for the implementation of the Web portals to the State Chief Information Officer for review and approval. When the plan is approved by the State Chief Information Officer, ITS DIT shall move forward with development and implementation of the statewide Web Portal system.

(b) Each State department, agency, and institution under the review of the State Chief Information Officer agency as defined in G.S. 143B-1300(a) shall functionally link its Internet or electronic services to a centralized Web portal system established pursuant to subsection (a) of this section."

SECTION 7A.4.(h) G.S. 105-259(b)(45) reads as rewritten:

"(45) To furnish tax information to the Office of the State Chief Information Officer under G.S. 143B-426.38A.pursuant to G.S. 143B-1344. The use and reporting of individual data may be restricted to only those activities specifically allowed by law when potential fraud or other illegal activity is indicated."

SECTION 7A.4.(i) G.S. 115C-529 reads as rewritten: "§ 115C-529. Useful life guidelines.

The State OfficeDepartment of Information Technology Services shall develop and annually revise guidelines for determining the useful life of computers purchased under G.S. 115C-528. The Division of Purchase and Contract shall develop and periodically revise guidelines for determining the useful life of automobiles, school buses, and photocopiers purchased under G.S. 115C-528. The Local Government Commission shall develop and periodically revise guidelines for determining the useful life of mobile classroom units purchased under G.S. 115C-528. Guidelines for computers and photocopiers shall include provisions for upgrades during the term of the contract. The State OfficeDepartment of Information Technology Services,Technology, the Division of Purchase and Contract, and the Local Government Commission shall provide their respective guidelines to the State Board of Education by November 1, 1996. The State Board of Education shall provide the guidelines to local boards of education by January 1, 1997."

SECTION 7A.4.(j) G.S. 116-40.22(d) reads as rewritten:

"(d) Information Technology. – Notwithstanding any other provision of law, the Board of Trustees of an institution shall establish policies and rules governing the planning, acquisition, implementation, and delivery of information technology and telecommunications at the institution. These policies and rules shall provide for security and encryption standards; software standards; hardware standards; acquisition of information technology consulting and contract services; disaster recovery standards; and standards for desktop and server computing, telecommunications, networking, video services, personal digital assistants, and other wireless technologies; and other information technology matters that are necessary and appropriate to

fulfill the teaching, educational, research, extension, and service missions of the institution. The Board of Trustees shall submit all initial policies and rules adopted pursuant to this subsection to the Office Department of Information Technology Services for review upon adoption by the Board of Trustees. Any subsequent changes to these policies and rules adopted by the Board of Trustees shall be submitted to the Office Department of Information Technology Services for review. Any comments by the Office Department of Information Technology Services shall be submitted to the Chancellor of that institution."

SECTION 7A.4.(k) G.S. 126-5 reads as rewritten: "§ 126-5. Employees subject to Chapter; exemptions.

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(c11) The following are exempt from: (i) the classification and compensation rules established by the State Human Resources Commission pursuant to G.S. 126-4(1) through (4); (ii) G.S. 126-4(5) only as it applies to hours and days of work, vacation, and sick leave; (iii) G.S. 126-4(6) only as it applies to promotion and transfer; (iv) G.S. 126-4(10) only as it applies to the prohibition of the establishment of incentive pay programs; and (v) Article 2 of Chapter 126 of the General Statutes, except for G.S. 126-7.1:

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(3) Employees of the Office of the State Chief Information Officer, the OfficeDepartment of Information Technology Services (ITS), (DIT), and employees in all agencies, departments, and institutions with similar classifications as ITS DIT employees, who voluntarily relinquish annual longevity payments, relinquish any claim to longevity pay, voluntarily relinquish any claim to career status or eligibility for career status as approved by the State Chief Information Officer and the Director of the Office of State Human Resources (OSHR).

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(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:

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k. Office Department of Information Technology Services.Technology. l. Office of State Budget and Management.

m. Office of State Human Resources. …."

SECTION 7A.4.(l) G.S. 130A-309.138(1) reads as rewritten:

"(1) Develop and maintain a current list of manufacturers that are in compliance with the requirements of G.S. 130A-309.134 and G.S. 130A-309.135, post the list to the Department's Web site, and provide the current list to the Office Department of Information Technology Services each time that the list is updated."

SECTION 7A.4.(m) G.S. 136-89.194(g)(2) reads as rewritten:

"(g) Contract Exemptions. – The following provisions concerning the purchase of goods and services by a State agency do not apply to the Turnpike Authority:

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(2) Article 3D of Chapter 147 Article 14 of Chapter 143B of the General Statutes. The Authority may use the services of the Office of Information Technology Services Department of Information Technology in procuring goods and services that are not specific to establishing and operating a toll revenue system. All However, all contract information for contracts for information technology are subject to disclosure in accordance with G.S. 147-33.95.Article 14 of Chapter 143B of the General Statutes."

SECTION 7A.4.(n) G.S. 138A-3 reads as rewritten: "§ 138A-3. Definitions.

The following definitions apply in this Chapter: …

(30) Public servants. – All of the following: …

p. The chief information officer,State Chief Information Officer, deputy chief information officers, chief financial officers, and general counsel of the Office of Department of Information Technology. …."

SECTION 7A.4.(o) G.S. 143-48.3 reads as rewritten: "§ 143-48.3. Electronic procurement.

(a) The Department of Administration shall develop and maintain electronic or digital standards for procurement. The Department of Administration shall consult with the Office of the State Controller, the Office Department of Information Technology Services (ITS),Technology, the Department of State Auditor, the Department of State Treasurer, The University of North Carolina General Administration, the Community Colleges System Office, and the Department of Public Instruction.

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(b) The Department of Administration, in conjunction with the Office of the State Controller and the Office Department of Information Technology Services may, upon request, provide to all State agencies, universities, and community colleges, training in the use of the electronic procurement system.

(c) The Department of Administration shall utilize the Office Department of Information Technology Services as an Application Service Provider for an electronic procurement system. The Office Department of Information Technology Services shall operate this electronic procurement system, through State ownership or commercial leasing, in accordance with the requirements and operating standards developed by the Department of Administration and the financial reporting and accounting procedures of the Office of the State Controller.

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(f) Any State entity or community college operating a functional electronic procurement system established prior to September 1, 2001, may until May 1, 2003, continue to operate that system independently or may opt into the North Carolina E-Procurement Service. Each entity subject to this section shall notify the Office Department of Information Technology Services by January 1 of each year of its intent to participate in the North Carolina E-Procurement Service."

SECTION 7A.4.(p) G.S. 143-49 reads as rewritten: "§ 143-49. Powers and duties of Secretary.

The Secretary of Administration has the power and authority, and it is the Secretary's duty, subject to the provisions of this Article:

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(8) To establish and maintain a procurement card program for use by State agencies, community colleges, and nonexempted constituent institutions of The University of North Carolina. The Secretary of Administration may adopt temporary rules for the implementation and operation of the program in accordance with the payment policies of the State Controller, after consultation with the Office Department of Information Technology Services.Technology. These rules would include the establishment of appropriate order limits that leverage the cost savings and efficiencies of the procurement card program in conjunction with the fullest possible use of the North Carolina E-Procurement Service. Prior to implementing the program, the Secretary shall consult with the State Controller, the UNC General Administration, the Community Colleges System Office, the State Auditor, the Department of Public Instruction, a representative chosen by the local school administrative units, and the Office Department of Information Technology Services.Technology. The Secretary may periodically adjust the order limit authorized in this section after consulting with the State Controller, the UNC General Administration, the Community Colleges System Office, the Department of Public Instruction, and the Office Department of Information Technology Services.Technology.

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SECTION 7A.4.(q) G.S. 143-56 reads as rewritten: "§ 143-56. Certain purchases excepted from provisions of Article.

Unless as may otherwise be ordered by the Secretary of Administration, the purchase of supplies, materials and equipment through the Secretary of Administration shall be mandatory in the following cases:

(1) Published books, manuscripts, maps, pamphlets and periodicals.

(2) Perishable articles such as fresh vegetables, fresh fish, fresh meat, eggs, and others as may be classified by the Secretary of Administration.

Purchase through the Secretary of Administration shall not be mandatory for information technology purchased in accordance with Article 3D of Chapter 147Article 14 of Chapter 143B of the General Statutes, for a purchase of supplies, materials or equipment for the General Assembly if the total expenditures is less than the expenditure benchmark established under the provisions of G.S. 143-53.1, for group purchases made by hospitals, developmental centers, neuromedical treatment centers, and alcohol and drug abuse treatment centers through a competitive bidding purchasing program, as defined in G.S. 143-129, by the University of North Carolina Health Care System pursuant to G.S. 116-37(h), by the University of North Carolina Hospitals at Chapel Hill pursuant to G.S. 116-37(a)(4), by the University of North Carolina at Chapel Hill on behalf of the clinical patient care programs of the School of Medicine of the University of North Carolina at Chapel Hill pursuant to G.S. 116-37(a)(4), or by East Carolina University on behalf of the Medical Faculty Practice Plan pursuant to G.S. 116-40.6(c).

All purchases of the above articles made directly by the departments, institutions and agencies of the State government shall, whenever possible, be based on competitive bids. Whenever an order is placed or contract awarded for such articles by any of the departments, institutions and agencies of the State government, a copy of such order or contract shall be forwarded to the Secretary of Administration and a record of the competitive bids upon which it was based shall be retained for inspection and review."

SECTION 7A.4.(r) G.S. 143-59.1(a) reads as rewritten:

"(a) Ineligible Vendors. – The Secretary of Administration Administration, State Chief Information Officer, and other entities to which this Article applies shall not contract for goods or services with either of the following:

…."

SECTION 7A.4.(s) G.S. 143-129(e)(7) reads as rewritten: "(e) Exceptions. – The requirements of this Article do not apply to:

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(7) Purchases of information technology through contracts established by the State Office of Department of Information Technology as provided in G.S. 147-33.82(b) and G.S. 147-33.92(b).Article 14 of Chapter 143B of the General Statutes."

SECTION 7A.4.(t) G.S. 143-129.8(a) reads as rewritten:

"(a) In recognition of the complex and innovative nature of information technology goods and services and of the desirability of a single point of responsibility for contracts that include combinations of purchase of goods, design, installation, training, operation, maintenance, and related services, a political subdivision of the State may contract for information technology, as defined in G.S. 147-33.81(2),G.S. 143B-1300, using the procedure set forth in this section, in addition to or instead of any other procedure available under North Carolina law."

SECTION 7A.4.(u) G.S. 143-135.9(c) reads as rewritten:

"(c) Information Technology. – The acquisition of information technology by the State of North Carolina shall be conducted using the Best Value procurement method. For purposes of this section, business process reengineering, system design, and technology implementation may be combined into a single solicitation. For acquisitions which the procuring agency and the Division of Purchase and Contracts or the Office Department of Information Technology Services,Technology, as applicable, deem to be highly complex or determine that the optimal solution to the business problem at hand is not known, the use of Solution-Based Solicitation and Government-Vendor Partnership is authorized and encouraged. Any county, city, town, or subdivision of the State may acquire information technology pursuant to this section."

SECTION 7A.4.(v) G.S. 143-151.16(d) reads as rewritten:

"(d) The Board may contract with persons for the development and administration of the examinations required by G.S. 143-151.13(a), for course development related to the examinations, for review of a particular applicant's examination, and for other related services.

The person with whom the Board contracts may charge applicants a reasonable fee for the costs associated with the development and administration of the examinations, for course development related to the examinations, for review of the applicant's examinations, and for other related services. The fee shall be agreed to by the Board and the other contracting party. The amount of the fee under this subsection shall not exceed one hundred seventy-five dollars ($175.00). Contracts for the development and administration of the examinations, for course development related to the examinations, and for review of examinations shall not be subject to Article 3, 3C, or 8 of Chapter 143 of the General Statutes or to Article 3D of Chapter 147Article 14 of Chapter 143B of the General Statutes. However, the Board shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subsection to the Attorney General or the Attorney General's designee for review as provided in G.S. 114-8.3; and (ii) include in all proposed contracts to be awarded by the Board under this subsection a standard clause which provides that the State Auditor and internal auditors of the Board may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Board shall not award a cost plus percentage of cost agreement or contract for any purpose."

SECTION 7A.4.(w) G.S. 143-663(a) reads as rewritten: "(a) The Board shall have the following powers and duties:

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(2) To develop and adopt uniform standards and cost-effective information technology, after thorough evaluation of the capacity of information technology to meet the present and future needs of the State and, in consultation with the Office Department of Information Technology Services,Technology, to develop and adopt standards for entering, storing, and transmitting information in criminal justice databases and for achieving maximum compatibility among user technologies.

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SECTION 7A.4.(x) G.S. 143B-146.13(a) reads as rewritten:

"(a) No later than December 15, 1998, the Secretary shall develop a school technology plan for the residential schools that meets the requirements of the State school technology plan.