SB 284 — County Cybersec./Satellite Broadband Grants.

d.

Providing incentives for the recruitment and retention of highly qualified individuals to serve as program managers.

e.

Developing resources and support, including establishing relevant competencies encompassed with program and project management within the private sector for program managers.

f.

Developing means of collecting and disseminating best practices and lessons learned to enhance program management throughout the Department.

g.

Create common templates and tools to support improved data gathering and analysis for program management and oversight purposes.

SECTION 2.(c) No later than 270 days after the effective date of this act, the Deputy Chief Information Officer shall issue regulations in accordance with this section.

The regulations shall contain at least all of the following:

Page 2 Senate Bill 284-Second Edition General Assembly Of North Carolina Session 2019 (1) Identification ofkeyskills andcompetenciesneededforaprogram andproject manager in the Department.

(2) Establishment of a new job series for program and project management within the Department.

(3) Establishment of a new career path for program and project managers within the Department.

(4) Requirements for certification of program and project managers within the Department by domestic third-party certification bodies specializing in certifications for project managers, program managers, and portfolio managers.

SECTION 2.(d) On or before July 1, 2021, the Department of Information Technology shall submit a report to the Joint Legislative Oversight Committee on Information Technology and the Fiscal Research Division on the pilot program outlined in this section.

At a minimum, the report shall contain the following:

(1) A list of the policies, guidelines, and regulations issued under the pilot program.

(2) The contents of the five-year strategic plan for program and project management.

(3) A summary of the written strategy for project managers in the Department.

(4) Evidence of any improvement in project management in the Department, including a summary of personnel training and certifications, resulting from the pilot program.

(5) Any programmatic or legislative recommendations.

SECTION 3.(a) Part 6 of Article 15 of Chapter 143B of the General Statutes is amended by adding a new section to read:

"§ 143B-1374.

Satellite-Based Broadband Grant Program.

(a) The following definitions apply in this section:

(1) Broadband service.

– Internet access service, regardless of the technology or medium used to provide the service, with transmission speeds that are equal to or greater than the requirements for the minimum performance tier and with latencyequaltoorlesserthantherequirementsforlowlatency,asbothmetrics are provided by the Federal Communications Commission in Paragraph 39 of the report and order adopted January 30, 2020, and released February7, 2020.

(2) Grantee.

– A satellite-based provider that has been awarded a grant pursuant to this section.

(3) Office.

– The Broadband Infrastructure Office in the Department of Information Technology.

(4) Projectarea.–Anareaidentifiedbyagranteeand definedinagrantagreement entered into pursuant to this section that contains unserved households.

A project area may also cover areas that have broadband service.

(5) Satellite-based provider.

– A broadband service provider that provides Internet access directly to consumers via satellite technology.

(6) Unserved household.

– A household located in this State that does not have access to broadband service and that the Department has identified as being situated in either an unserved census tract or a tract that the Department otherwise determines is unserved.

A household that is included in an area where a grant from the Growing Rural Economies with Access to Technology (GREAT) program pursuant to G.S.

143B-1373 has been awarded is not eligible for a grant under this section.

(b) The Satellite-Based Broadband Grant Fund is created as a special revenue fund in the Department of Information Technology.

Monies in the Fund do not revert but remain available Senate Bill 284-Second Edition Page 3 General Assembly Of North Carolina Session 2019 to the Department for the purposes provided in this section.

State funds appropriated to this Fund shall be considered an information technology project within the meaning of G.S.

143C-1-2.

(c) Applications for grants will be submitted at times designated by and on forms prescribed by the Secretary.

Notwithstanding any other provision of law, if the Secretary deems some of the information in an application to contain proprietary information, the Secretary may provide that such information is not a public record, as that term is defined in G.S.

132-1, subject to public records or other laws requiring the disclosure of such information and have that portion of the application redacted.

An application shall include, at a minimum, the following information:

(1) The identity of the applicant.

(2) An illustration or description of the project area to be served and the estimated number of unserved households in that area that will gain access to broadband service at the conclusion of deployment.

(3) The proposed construction and deployment time line.

(4) A description of the services to be provided, including the proposed upstream and downstream broadband speeds to be delivered and any applicable data caps.

Any applicant proposing a data cap below 150 Gigabytes of usage per month shall also provide justification to the satisfaction of the Office that the proposed cap is in the public interest and consistent with industry standards.

(5) A plan to mitigate barriers to adoption by households.

(6) The proposed advertised speed to be marketed to end users in the project area.

(7) The proposed cost to be charged to an unserved household in the project area for subscribing to the broadband service.

(8) Any other information or supplementary documentation requested by the Office.

(d) The Office shall determine eligibility for a grant pursuant to this section based upon the information provided in the application of a satellite-based provider and shall award grants toapplicantsthatwillprovideaccesstothegreatestnumberofunservedhouseholds.Applications of satellite-based providers that propose the provision of broadband service to the greatest number of unserved households situated in census tracts that have been identified as significantly unserved by the Office shall be given priority, even if the proposed area contains portions of households with broadband service.

The maximum aggregate amount of total liability for all grants awarded under this section is four million dollars ($4,000,000).

The maximum amount of total annual liability for grants awarded in any single calendar year under this section is two millionfivehundredthousanddollars($2,500,000).Noagreementmaybeenteredintothat,when considered together with other existing agreements governing grants awarded during a single calendar year, could cause the State's potential total annual liabilityfor grants awarded in a single calendar year to exceed the applicable amount.

The amount of award for each grant year shall be equal to theproduct oftwo hundred fiftydollars($250.00)multipliedbyafraction,thenumerator of which is the total number of full months all unserved households received broadband service from a satellite-based provider in the grant year and the denominator of which is 12.

No broadband service to an unserved household beyond 24 months of service may be included in the calculation of an award.

Eligibility for a grant award is dependent upon the household maintaining broadband service with the grantee for at least eighty-three percent (83%) of the year in which the grantee seeks an award.

No single subscription or full-year equivalent subscription may be used to calculate a grant award for more than the three-year term identified in the agreement.

The total grant award for a single unserved household under this section shall not exceed five hundred dollars ($500.00).

A grantee shall submit documentation to the Office annually that will provide information sufficient for the Office to verify eligibility of subscriptions.

Page 4 Senate Bill 284-Second Edition General Assembly Of North Carolina Session 2019 (e) The Office shall require a grantee to enter into an agreement.

The agreement shall contain at least all of the following:

(1) A detailed description of the anticipated area where the grantee will deploy broadband service.

(2) The current number of unserved households situated within the anticipated area.

(3) The total number of unserved households the grantee anticipates subscribing to its broadband service.

(4) A method for the grantee to report annually to the Office the number of households subscribing to broadband service offered by the grantee.

(5) A plan for the grantee to address barriers to adoption by households situated within the project area.

(6) A provision that requires the grantee to maintain its service for the area, or another area approved by the Office, for at least five years.

(7) A provision establishing the conditions under which the grant agreement may be terminated and under which grant funds may be recaptured by the Office.

(8) A provision stating that unless the agreement is terminated pursuant to its terms, the agreement is binding and constitutes a continuing contractual obligation of the State and the grantee.

(9) A provision that establishes any allowed variation in the terms of the agreement that will not subject the grantee to grant reduction, amendment, or termination of the agreement.

(10) A provision describing the manner in which the amount of the grant will be measured and administered to ensure compliance with the agreement and this section.

(11) A provision stating that any recapture of a grant and any reduction in the amount of the grant or the term of the agreement must, at a minimum, be proportional to the failure to comply measured relative to the condition or criterion with respect to which the failure occurred.

(12) A provision describing the methodology the Office will use to verify subscriptions and the types of information required to be submitted by the grantee.

(13) A provision prohibiting a grantee from receiving a payment or other benefit under the agreement at any time when the grantee has received a notice of an overdue tax debt, as defined in G.S.

105-243.1, and the overdue tax debt has not been satisfied or otherwise resolved.

(14) Aprovision stating that anydisputes over interpretation ofthe agreementshall be submitted to binding arbitration.

(15) A provision encouraging the business to contract with small businesses headquartered in the State for goods and services.

(16) A provision encouraging the business to hire North Carolina residents.

(17) A provision encouraging the business to use the North Carolina State Ports.

(18) Any other provision the Office deems necessary.

TheAttorneyGeneral shall reviewtheterms ofall proposedagreements enteredinto pursuant to thissection.

Tobeeffectiveagainst theState,anagreement enteredinto pursuant to thissection must be signed personally by the Attorney General.

An agreement entered into pursuant to this section is a binding obligation of the State and is not subject to State funds being appropriated by the General Assembly.

(f) If the grantee fails to meet or comply with any condition or requirement set forth in an agreement, the Office shall reduce the amount of the grant or the term of the agreement, may terminate the agreement, or both.

The reduction in the amount or the term must, at a minimum, Senate Bill 284-Second Edition Page 5 General Assembly Of North Carolina Session 2019 be proportional to the failure to comply measured relative to the condition with respect to which the failure occurred.

If the Office finds that the grantee has manipulated or attempted to manipulate data with the purpose of increasing the amount of a grant, the Office shall immediately terminate the agreement and take action to recapture any grant funds disbursed in any year in which the Office finds the grantee manipulated or attempted to manipulate data with the purpose of increasing the amount of a grant.

(g) The grantee shall certify and provide to the Office evidence consistent with a Federal Communications Commission attestation that the proposed minimum upstream and minimum downstream broadband speeds identified in the application guidelines are and will be available throughout the project area during the term of the agreement prior to any end user connections.

A grantee may receive an annual disbursement of a grant only after the Office has certified that the grantee has met the terms and conditions of the agreement.

A grantee shall annually submit a certification of compliance with the agreement to the Office.

The Office shall require the granteeto provideanynecessaryevidenceofcomplianceto verifythat thetermsoftheagreement have been met.

(h) Notwithstandinganyotherprovision of law, grants madepursuant to this sectionshall be budgeted and funded on a cash flow basis.

The Department shall disburse funds in an amount sufficient to satisfy grant obligations to be paid during the fiscal year.

It is the intent of the GeneralAssemblytoappropriatefundsannuallyto theSatellite-Based BroadbandGrantProgram established in this section in amounts sufficient to meet the anticipated cash requirements for each fiscal year.

(i) The Office shall require that a grantee offer the proposed advertised minimum download and minimum upload speeds and subscription cost identified in the application for the duration of the five-year service agreement.

At least annually, a grantee shall provide to the Office evidence consistent with a Federal Communications Commission attestation that the grantee is making available the proposed advertised speed, or a faster speed, as contained in the grant agreement.

For the duration of the agreement, a grantee shall disclose any changes to data caps for the project area that differ from the data caps listed in the grant application to the Office.

(j) Agranteeshallsubmitto theOfficeanannual reportforthedurationoftheagreement.

The report shall include a summary of, and level of attainment for, the items contained in the grant agreement and shall also include (i) the number of households that have broadband access as a result of the project, (ii) the percentage of end users in the project area who have access to broadband service that actually subscribe to the broadband service, and (iii) the average monthly subscription cost for broadband service in the project area.

(k) The Department of Information Technologyshall submit an annual report to the Joint Legislative Oversight Committee for Information Technology and the Fiscal Research Division on or before September 1.

The report shall contain at least all of the following:

(1) The number of grant projects applied for and the number of grant agreements entered into.

(2) A time line for each grant agreement and the number of households expected to benefit from each agreement.

(3) The total amount of investment for each agreement.

(4) A summary of areas receiving grants that are now being provided broadband service and the advertised broadband speeds and subscription prices for those areas.

(5) Any breaches of agreements, and any grant fund forfeitures or reductions.

(6) Any recommendations for the grant program, including better data sources and methods for improving outcomes and accountability." SECTION 3.(b) Notwithstanding G.S.

143B-1374(d), as enacted in this act, the maximum amount of total annual liability for grants awarded for the 2020 calendar year is one million dollars ($1,000,000).

Page 6 Senate Bill 284-Second Edition General Assembly Of North Carolina Session 2019 SECTION 4.(a) G.S.

146-29.2 reads as rewritten:

"§ 146-29.2.

Lease or interest in real property for communication purposes.

… (b1) The State shall allow the collocation, installation, and operation of equipment by a broadband provider on any existing structure owned by the State and shall lease real property, or grant an easement or license with an interest in real property, for the purposes of construction and placement of broadband infrastructure on State land.

A disposition entered into pursuant to this subsection is voidable by the Governor and Council of State for specific reasons or causes that shall be cited.

A determination for a disposition under this subsection shall be made subject to the following:

(1) For new requests, the Department of Administration shall prepare and finalize the lease agreement within four months of the receipt of the lease application by the controlling agency.

An agency controlling the subject property shall coordinatewiththeDepartmentinpreparingthecompleteapplicationpackage for the lease request.

If, after four months have elapsed since the controlling agency received the lease application, the lease agreement has not been finalized, the Department shall enter into a lease agreement with the applicant according to the terms submitted in the application.

(2) For renewals, the Department of Administration shall prepare and finalize the lease agreement within two months of receiving the application.

If the Department is unable to finalize the renewed lease at least two months prior to the termination of the current lease, then the terms of the current lease shall continue until the lease is finalized.

(3) The Department of Administration shall coordinate with the Department of Information Technology to develop a streamlined lease development process using state-of-the-art technology, including video conferencing, to facilitate and expedite process completion.

All State agencies shall cooperate with and participate in the streamlined lease development process to ensure that finalized lease agreement is prepared and finalized within the time frames required under this subsection.

…." SECTION 4.(b) This section becomes effective July 1, 2020, and applies to applications for new leases and lease renewals submitted on or after that date.

SECTION 4.(c) This section expires January 1, 2025.

SECTION 5.(a) Notwithstanding any other provision of law to the contrary, the appropriation in Fund Code 14660-1990 for transfer to the IT Reserve Fund (Budget Code:

24667) is reduced by twelve million two hundred fifty thousand dollars ($12,250,000) in nonrecurringfunds for the 2020-2021 fiscal year and the appropriation to Enterprise Securityand Risk Management Office (Fund Code:

14660-1720) is increased by twelve million two hundred fifty thousand dollars ($12,250,000) in nonrecurring funds for the 2020-2021 fiscal year.

SECTION 5.(b) Of the funds available in the Enterprise Security and Risk Management Office (Fund Code:

14660-1720), the following sums are appropriated to the Department of Information Technology to be allocated for the following purposes:

(1) $2,500,000 in nonrecurring funds for the 2020-2021 fiscal year for the cybersecurity pilot program described in Section 1 of this act.

(2) $3,250,000 in nonrecurringfunds for the 2020-2021 fiscal year to be allocated to Gaston College to use to found the Carolina Cyber Network.

Gaston College may use up to two hundred fifty thousand dollars ($250,000) of the funds allocated in this subdivision for administration costs associated with the Network.

Senate Bill 284-Second Edition Page 7 General Assembly Of North Carolina Session 2019 (3) The sum of five million five hundred thousand dollars ($5,500,000) in nonrecurring funds for the 2020-2021 fiscal year to be used to enhance Statewide cybersecurity.

(4) The sum of one million dollars ($1,000,000) to the Satellite-Based Broadband Grant Fund, established in Section 3 of this act.

SECTION 6.(a) The provisions of the State Budget Act, Chapter 143C of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

SECTION 6.(b) Except where expressly repealed or amended by this act, the provisions of any other legislation enacted during the 2019 Regular Session of the General Assembly expressly appropriating funds to an agency, a department, or an institution covered under this act shall remain in effect.

SECTION 7.

Except as otherwise provided, this act becomes effective July 1, 2020.

Page 8 Senate Bill 284-Second Edition