General assembly of north carolina

SECTION 6A.3.(d) Funding. – Of funds generated from increased revenues or cost savings as compared to the baselines established by subdivision (1) of subsection (c) of this section, in the General Fund,  the Highway Fund, and that State portion of the Unauthorized Substance Tax collections of the Special Revenue Fund, the sum of up to a total of sixteen million dollars ($16,000,000) may be used by the Office of State Budget and Management to make purchases related to the implementation of the additional public private arrangement authorized by this section, including payment for services from non State entities.

SECTION 6A.3.(e) Internal Costs. – For the 2012 2013 fiscal year, in addition to the funding authorized in subsection (d) of this section and Section 6A.5(a) of S.L. 2011 145, the Department of Revenue may retain both of the following:

(1) An additional sum of ten million two hundred twenty eight thousand dollars ($10,228,000) from benefits generated for the General Fund since the beginning of the public private partnership described under Section 6A.5(a) of S.L. 2011 145. These funds shall be used as payment of internal costs for the fiscal biennium, and such funds are hereby appropriated for this purpose.

(2) An additional sum of six million dollars ($6,000,000) from benefits generated for the General Fund since the beginning of the public private partnership described under Section 6A.5(a) of S.L. 2011 145. These funds shall be used to support internal costs and any new resources necessary to provide additional electronic services, to include payments and returns. Any requirements for electronic forms and digital signatures resulting from the electronic services expansion shall be coordinated with the Office of the State Controller.

SECTION 6A.3.(f) Expert Counsel Required. – Notwithstanding G.S. 114 2.3, the Department of Revenue shall engage the services of private counsel with the pertinent information technology and computer law expertise to negotiate and review contracts associated with an additional public private arrangement authorized under this section.

SECTION 6A.3.(g) Oversight Committee. – The Oversight Committee established under Section 6A.5(c) of S.L. 2011 145 shall have the same responsibilities and duties with respect to an additional public private arrangement authorized by this section as it does with respect to public private arrangements to implement TIMS and the additional PDP components.

SECTION 6A.3.(h) Reporting. – Beginning August 1, 2012, and quarterly thereafter, the Department of Revenue shall submit detailed written reports to the Chairs of the House of Representatives and Senate Committees on Appropriations, to the Joint Legislative Oversight Committee on Information Technology, and to the Fiscal Research Division of the General Assembly. The report shall include an explanation of all of the following:

(1) Details of each public private contract.

(2) The benefits from each contract.

(3) A comprehensive forecast of the benefits of using public private agreements to implement TIMS, the additional PDP components, and additional components authorized by this section, including cost savings and the acceleration of the project timeline.

(4) Any issues associated with the operation of the public private partnership.

SECTION 6A.3.(i) Information Technology Project Oversight. – In addition to the oversight provided by the Oversight Committee established in Section 6A.5(c) of S.L. 2011 145, the additional public private arrangement authorized by this section shall be subject to existing State information technology project oversight laws and statutes, and the project management shall comply with all statutory requirements and other criteria established by the State Chief Information Officer and the Office of State Budget and Management for information technology projects. The State Chief Information Officer and the Office of State Budget and Management shall immediately report any failure to do so to the Joint Legislative Oversight Committee on Information Technology, the Chairs of the House of Representatives and Senate Committees on Appropriations, and the Fiscal Research Division.

SECTION 6A.3.(j) Extension. – Section 6A.5(c) of S.L. 2011 145 reads as rewritten:

"SECTION 6A.5.(c) There is established within the Department of Revenue the Oversight Committee for reviewing and approving the benefits measurement methodology and calculation process. The Oversight Committee shall review and approve in writing all contracts, including change orders, amendments to contracts, and addendums to contracts, before they are executed under this section. This shall include (i) details of each public private contract, (ii) the benefits from each contract, and (iii) a comprehensive forecast of the benefits of using public private agreements to implement TIMS and the additional PDP components, including the measurement process established for the Secretary of Revenue. The Oversight Committee shall approve all of the fund transfers for this project. Within five days of entering into a contract, the Department shall provide copies of each contract and all associated information to the Joint Legislative Oversight Committee on Information Technology, the Chairs of the House of Representatives and Senate Committees on Appropriations, and the Fiscal Research Division.

The members of the Committee shall include the following:

(1) The State Budget Director;

(2) The Secretary of the Department of Revenue;

(3) The State Chief Information Officer;

(4) Two persons appointed by the Governor;

(5) One member of the general public having expertise in information technology appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives; and

(6) One member of the general public having expertise in economic and revenue forecasting appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate.

The State Budget Director shall serve as chair of the Committee. The Committee shall set its meeting schedule and adopt its rules of operation by majority vote. A majority of the members constitutes a quorum. Vacancies shall be filled by the appointing authority. Administrative support staff shall be provided by the Department of Revenue. Members of the Committee shall receive reimbursements for subsistence and travel expenses as provided by Chapter 138 of the General Statutes. The Committee shall terminate on June 30, 2015.June 30, 2018.

The Department shall provide copies of the minutes of each meeting and all associated information to the Joint Legislative Oversight Committee on Information Technology, the Chairs of the House of Representatives and Senate Committees on Appropriations, and the Fiscal Research Division."

SECTION 6A.3.(k) One Time Payment. – To accelerate the implementation of the Tax Information Management System, including any additional components authorized by subsection (a) of this section, the Office of State Budget and Management may authorize the Secretary of Revenue to make a one time payment of two million dollars ($2,000,000) to the vendor of TIMS for implementation of TIMS if all of the conditions of this section are satisfied. The one time payment shall be paid within 90 days of satisfaction of all conditions of this section or when sufficient funds are available, whichever is later. The source of funds for this payment is the same increased revenue and cost savings streams identified under subsection (a) of this section. The payment authorized by this subsection is in addition to the payments authorized by subsection (a) of this section. The mandatory conditions of this subsection are as follows:

(1) Release 5 of the Enterprise Technology Management (ETM) project is initially implemented on or before July 31, 2013.

(2) The post implementation defect rate for Release 5 of the ETM project is within standards agreed to by the Secretary and the vendor. For purposes of this section, the post implementation period is the period from the date of initial implementation until 90 days after initial implementation.

(3) All defects identified as part of Release 5 of the ETM project before the end of the post implementation period are resolved within time frames agreed to by the Secretary and the vendor.
INFORMATION TECHNOLOGY PERSONAL SERVICES CONTRACTS/REPORTING CHANGE

SECTION 6A.4. Section 6A.6(c) of S.L. 2011 145 reads as rewritten:

"SECTION 6A.6.(c) Beginning August 1, 2011, August 1, 2012, and monthly quarterly thereafter, each State agency, department, and institution employing information technology personal services contractors, or contract personnel performing information technology functions, shall provide a detailed report on those contracts to the Office of State Budget and Management, the Office of State Personnel, the Office of Information Technology Services, the Joint Legislative Oversight Committee on Information Technology, and the Fiscal Research Division of the General Assembly. Each State agency's report shall include at least the following:

(1) For each contracted information technology position:

a. The title of the position, a brief synopsis of the essential functions of the position, and how long the position has existed.

b. The name of the individual filling the position and the vendor company, if any, that regularly employs that individual.

c. The type of contract, start date, and termination date.

d. The length of time that the individual filling the contracted position has been employed by the State as a contractor in any position.

e. The contracted position salary or hourly rate, the number of hours per year, and the total annualized cost of the contracted position.

f. The salary and benefits cost for a State employee performing the same function.

g. The purchase order number for the position.

h. Whether the position can be converted to a State employee position. This determination will be certified by the State Information Technology Purchasing Office.

i. When the agency anticipates converting the position to a State employee.

(2) The total annual cost for information technology contractors and the total annual salary and benefits cost for filling the contract positions with State employees.

(3) A determination of whether the information technology functions performed by the contractor can be performed by State employees.

(4) All information required by this subsection related to information technology contractors regardless of the contracting source."

OFFICE OF INFORMATION TECHNOLOGY SERVICES/INTERNAL SERVICE FUND RATE ESTABLISHED/CASH MANAGEMENT

SECTION 6A.5.(a) Section 6A.8 of S.L. 2011 145, as amended by Section 11(e) of S.L. 2011 391, reads as rewritten:

"ITS/INTERNAL SERVICE FUND RATE ESTABLISHMENT/CASH MANAGEMENT

"SECTION 6A.8.(a) For each year of the 2011 2013 fiscal biennium, the 2011 2012 fiscal year, receipts for the Information Technology Internal Service Fund shall not exceed one hundred ninety million dollars ($190,000,000), excluding a 60 day 40 day balance for contingencies. Notwithstanding G.S. 147 33.88, for the 2012 2013 fiscal year, all receipts, regardless of the source, including agency allocations and fund to fund transfers, for the Information Technology Internal Service shall not exceed one hundred seventy five million dollars ($175,000,000). Rates established by the Office of State Budget and Management (OSBM) to support the IT Internal Service Fund shall be based on this the required fund limit. Established rates shall be adjusted within 30 days in the event the fund exceeds the prescribed limit. In the event that an increase in receipts for the IT Internal Service Fund is required, the Office of Information Technology Services State Chief Information Officer may implement the increase only after consultation with the Joint Legislative Commission on Governmental Operations. Overhead applied to IT Internal Service Fund rates shall not exceed ten percent (10%) of the rate.

"SECTION 6A.8.(a1) The 40 day balance for contingencies shall be based on the maximum receipts permitted for each fiscal year, and any balance in excess of the limit must be refunded within 30 days of the first day when the fund balance exceeded the limitation amount. The Office of Information Technology Services shall limit collections each quarter to an amount not to exceed twenty five percent (25%) of the year's limit. For the 2012 2013 fiscal year, a 40 day balance shall be maintained.

"SECTION 6A.8.(b) Beginning with State fiscal year 2012 2013, rates shall be set to support a specific service for which an agency is being charged. Overhead charges to agencies must be consistently applied and must not exceed industry standards. Rate increases shall require approval of the OSBM. Rate reductions shall be immediately implemented following notification of the OSBM."

"SECTION 6A.8.(c) Beginning October 1, 2011, the State Chief Information Officer shall submit a quarterly report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on collections for, expenditures from, and the balance of the IT Internal Service Fund. The report shall include all expenditures made from the fund to support the Office of Information Technology Services and the activities of the State Chief Information Officer."

SECTION 6A.5.(b) The State Chief Information Officer shall consult with the Joint Legislative Commission on Governmental Operations prior to:

(1) Eliminating any services currently provided by the Office of Information Technology Services or the State Chief Information Officer.

(2) Transferring positions currently funded by the Information Technology Fund to the IT Internal Service Fund.

SECTION 6A.5.(c) Agency IT Expenses Cannot Exceed Appropriations. – During the 2012 2013 fiscal year, no State agency shall be charged more for information technology services provided by the Office of the State Chief Information Officer or the Office of Information Technology Services than the lower of the amount charged or the amount actually paid less refunds from available appropriations for the 2011 2012 fiscal year, unless the increase is agreed to in writing by the agency and the Office of the State Chief Information Officer.

The Information Technology Internal Service Fund charges to the Office of the State Controller shall be reduced by two million three hundred seventy nine thousand dollars ($2,379,000) for the 2012 2013 fiscal year. This funding shall be used to support the development and implementation of the Criminal Justice Law Enforcement Automated Data Services (CJLEADS).

The Information Technology Internal Service Fund charges to the Department of Public Instruction shall be reduced by eight hundred fifty thousand dollars ($850,000) for the 2012 2013 fiscal year. This funding shall be used to support the development and implementation of the Education Value Added Assessment System (EVAAS).