A BILL TO BE ENTITLED
AN ACT to require state agencies and certain non‑state entities to develop, implement, and maintain information systems that provide uniform, program‑level accountability information regarding the programs operated by those agencies.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 143 of the General Statutes is amended by adding a new Article to read:
"Article 2E.
"Accountability for Taxpayer Investment Act.
"§ 143‑47.30.  Definitions.
The following definitions apply in this Article:
(1)	Board. – The Taxpayer Investment Accountability Board established by this Article.
(2)	Non‑State entity. – Any of the following that is not a State agency and that must be discretely presented as a component unit in the State Comprehensive Annual Financial Report by the Governmental Accounting Standards Board: an individual, a firm, a partnership, an association, a corporation, or any other organization or group acting as a unit. The term does not include a local government unit or any other non‑State entity that is subject to the audit and other requirements of the Local Government Commission.
(3)	Principal executive officer. – Executive head of a State agency or non‑State entity.
(4)	State agency. – Any department, institution, board, commission, committee, division, bureau, board, council, or other entity for which the State has oversight responsibility, including The University of North Carolina, the University of North Carolina Health Care System, the Area Health Education Centers Program (AHEC), and the Community College System.
(5)	Taxpayer. – Any person subject to taxation by the State or by a unit of local government.
"§ 143‑47.31.  Purpose; scope.
The purpose of this Article is to require uniform, program‑level accountability information within State government available and understandable to the taxpayer. This Article applies to all of the following:
(1)	Any State agency in the executive branch of State government.
(2)	Any non‑State entity that receives State funds.
"§ 143‑47.32.  Taxpayer Investment Accountability Board.
(a)	Board. – There is established the Taxpayer Investment Accountability Board (Board). The members of the Board shall be as follows:
(1)	The State Controller, or the Controller's designee, who shall serve ex officio.
(2)	The Director of the Office of State Budget and Management, or the Director's designee, who shall serve ex officio.
(3)	The State Auditor, or the Auditor's designee, who shall serve ex officio as a nonvoting member.
(4)	The State Chief Information Officer, or the Officer's designee, who shall serve ex officio.
(b)	Organization. – The State Controller shall be the Chair of the Board. The Office of the State Controller and the Office of State Budget and Management shall provide staff and adequate meeting space to the Board and shall provide any other type of support required by the Board. The Board members shall receive no salary or other monetary compensation for serving on the Board.
(d)	Meeting. – The Board shall meet at least two times a year and may meet as often as necessary at the call of the Chair. A majority of the members of the Board constitutes a quorum for the transaction of business. The affirmative vote of a majority of the members present at a meeting of the Board is required for action to be taken by the Board.
(e)	Web‑Based Framework. – The Board shall design and establish a framework to provide to the citizens of North Carolina uniform, program‑level accountability information on State agencies and non‑State entities. The Board shall establish standards, policies, and procedures, including recurring oversight procedures. The framework shall be designed to ensure that the information is readily and easily accessible to the citizens of North Carolina through the main State government Web site, every State agency's Web site, and every non‑State entity's Web site. The Board may require State agencies and non‑State entities to submit information in a form and on or before a date specified by the Board. The Board may conduct public hearings and training workshops on matters related to compliance with requirements of this Article.
(f)	Annual Report. – The Board shall publish an annual report electronically by March 1 of each year available on the individual Web sites of each member of the Board, reporting on Board activities and accomplishments as well as setting out the standards, policies, and procedures to be used by agencies in establishing, implementing, and maintaining the information systems required by this Article. The Board shall notify each State agency and each non‑State entity subject to this Article and to the Program Evaluation and Fiscal Research Divisions of the General Assembly electronically upon release of each annual report.
(g)	Survey. – On or before July 1, 2018, and biennially on July 1 thereafter, the Board shall survey each State agency and non‑State entity electronically in a uniform format to determine the extent to which each agency program or non‑State entity program has information required by this Article. The survey shall request for each program, actual baseline resources invested and annual existing recurring costs by source of funding as of June 30, 2017, used for compiling information already responsive to requirements of this act. In addition, each program shall estimate by budget category and fund source any nonrecurring implementation and recurring maintenance costs to meet the information requirements of this act beginning July 1, 2017, and update the costs with each biennial survey response. The State agency or non‑State entity shall submit its survey response to the Board on or before October 1, 2018, and biennially on October 1 thereafter and publish its response on the home page of the agency or entity Web site. The Board shall tabulate and analyze the responses and include results in the annual report of the Board required by this Article.
"§ 143‑47.33.  Required State agency and non‑State entity information.
(a)	Information System. – Effective July 1, 2019, each State agency, as a condition of receiving State funds, shall establish, implement, and maintain an information system that provides uniform, program‑level accountability information that accurately conveys the information specified in subsection (b) of this section and any other information required by the Board. Each non‑State entity, as a condition of receiving State funds, shall establish, implement, and maintain within that non‑State entity an information system that provides uniform, program‑level accountability information that accurately conveys the information specified in subsection (b) of this section and any other information required by the Board. The system shall comply with the framework design and the standards, policies, and procedures established by the Board. The information shall be updated as needed and at least on an annual basis. The information provided by the system shall be readily and easily accessible to the citizens of North Carolina through the State agency's Web site and non‑State entity's Web site.
The principal executive officer of each State agency and the principal executive officer of each non‑State entity is responsible for ensuring that the State agency or non‑State entity, as appropriate, complies with the requirements of this Article.
(b)	Required Information. – Each State agency and each non‑State entity shall include the following information in its information system and make it directly accessible on its Web site:
(1)	Organization charts in a format specified by the Office of State Human Resources. In addition to a high‑level, department organization chart, each State agency and non‑State entity shall have separate charts for each organizational division and in turn for each subordinate division or work unit so that a citizen may determine the organizational location of every employee position. Reference to availability of organization charts elsewhere or upon request shall not meet the requirements of this subsection.
(2)	Financial statements prepared according to Board standards. The statements shall contain for the State agency or non‑State entity a consolidated schedule of all programs and activities. The statements shall also contain individual supplemental schedules for each program, including revenues by source and expenditures by purchasing category. The title of the statement and supplemental schedules shall specify if information reflected has been audited or unaudited. Reference to availability of financial statements elsewhere or upon request shall not meet the requirements of this subsection.
(3)	A directory of contact information for each program, including telephone number, e‑mail address, physical address, zip code, and building location. The directory shall have a search feature to enable searching by or listing by field. Each State agency and non‑State entity subject to this Article shall also list its employees in the employee directory available through the main State government Web site. Reference to availability of the directory elsewhere or upon request shall not meet the requirements of this subsection.
(4)	For each program, a problem statement that describes the local, regional, or statewide problems or needs that the program is intended to address. Reference to availability of the problem statement elsewhere or upon request shall not meet the requirements of this subsection.
(5)	For each program, a logic model that describes in graphical format the inputs, activities, outputs, outcomes, and impacts as recommended by the Logic Model Development Guide by the W.K. Kellogg Foundation. Reference to availability of the logic model elsewhere or upon request shall not meet the requirements of this subsection.
(6)	For each program, a completed standard Measurability Capability Form and supporting schedules as prescribed by the Board, describing the extent the program is measurable as defined by Chapter 143E of the General Statutes, the North Carolina Measurability Assessment Act of 2016. Using plain language, the program shall address each of the indicators of measurability as defined and enumerated within G.S. 143E‑3. The program shall provide the full title, publication date, and a synopsis of any document referenced on the form or a supporting schedule. Acronyms and abbreviations of organization descriptors and document titles shall not be used unless preceded by full wording upon first reference. Reference to availability of the Measurability Capability Form and supporting schedules elsewhere or upon request shall not meet the requirements of this subsection.
(7)	A uniform Web dashboard as prescribed by the Board that uses color graphics to allow a taxpayer to compare actual performance to standards using the indicators of measurability specified by G.S. 143E‑3(b)(7)a. through g. Reference to availability of the dashboard elsewhere or upon request shall not meet the requirements of this subsection.
(c)	Notice of Measurability Assessment. – Each State agency or non‑State entity shall notify program administrators that the General Assembly may require a measurability assessment, pursuant to Chapter 143E of the General Statutes, of its existing or proposed programs to determine whether the program is or will be cable of reporting performance and return on investment based on the indicators specified in G.S. 143E‑3(b).
"§ 143‑47.34.  Verification of compliance by State Auditor.
(a)	Agencies with Internal Auditors. – Internal auditors in State agencies required to have auditors pursuant to Article 79 of Chapter 143 of the General Statutes shall conduct annual audits for compliance with the requirements of this Article, including the accuracy and reliability of estimated 2017 baseline and implementation costs reported in the response to a Board survey. The initial compliance audit shall be filed with the agency and the Board on or before October 1, 2020, and subsequent reports filed annually by October 1.
(b)	Other Agencies. – The State Auditor may verify compliance with this Article by each State agency and each non‑State entity. Upon the determination of the State Auditor that a State agency or non‑State entity has failed to substantially comply with the provisions of this Article, the State Auditor shall report the noncompliance to the Board, the Governor, the Joint Legislative Commission on Governmental Operations, and the Program Evaluation and Fiscal Research Divisions of the General Assembly.
"§ 143‑47.35.  Remedy for noncompliance.
(a)	Failure to Comply. – Any taxpayer may institute a suit in the superior court requesting the entry of a judgment that a State agency or a non‑State entity, as appropriate, has failed to comply with this Article. Specific performance compelling the State agency or non‑State entity to comply with this Article shall be the available remedy. The taxpayer need not allege or prove special damage different from that suffered by the public at large.
(b)	Compliance. – Upon the presentation by the taxpayer plaintiff of a prima facie case that a State agency or non‑State entity has failed to comply with this Article, the burden shall be on the State agency or non‑State entity, as appropriate, to show that it is in compliance with this Article. No State agency or non‑State entity shall be held in noncompliance with this Article if it establishes that it has made a good‑faith effort to comply with the provisions of this Article.
(c)	Attorneys' Fees. – In any action brought pursuant to this section in which a party successfully compels compliance, the court shall allow the plaintiff to recover plaintiff's reasonable attorneys' fees. Any attorneys' fees assessed against a State agency or non‑State entity under this section shall be charged against the operating expenses of the State agency or non‑State entity, as appropriate. If the court determines that an action brought pursuant to this section was filed in bad faith or was frivolous, the court shall assess reasonable attorneys' fees against the person instituting the action and award it to the State agency or non‑State entity, as appropriate, as part of the costs.
"§ 143‑47.36.  Availability of technical assistance.
The Office of State Human Resources shall adopt rules setting the standards and format for the organization charts and directory of program contacts required by this Article. The Office of State Human Resources shall provide templates and technical assistance to State agencies and non‑State entities as needed to assure the uniformity required by this Article.
The Office of State Budget and Management and the Office of Information Technology shall provide technical assistance and software to State agencies and non‑State entities as needed to assure the uniformity required by this Article."
SECTION 2.  G.S. 150B‑1(c) is amended by adding a new subdivision to read:
"(c)	Full Exemptions. – This Chapter applies to every agency except:
…
(9)	The Taxpayer Investment Accountability Board established in G.S. 143‑47.32."
SECTION 3.  If a State agency or a non‑State entity subject to this act is not in compliance with Article 2E of Chapter 143 of the General Statutes, as enacted by Section 1 of this act, then the State agency or non‑State entity shall revise its information system to comply with this act. To comply with this act, each State agency, whether implementing a new information system or revising an existing system to bring it into compliance with the provisions of this act, shall use existing resources allocated to the State agency or non‑State entity for computers and for computer maintenance, contracted services, and personal service contracts.
SECTION 4.  G.S. 120‑36.12 is amended by adding a new subdivision to read as follows:
"§ 120‑36.12.  Duties of Program Evaluation Division.
The Program Evaluation Division of the Legislative Services Commission has the following powers and duties:
…
(11)	Effective January 1, 2021, to initiate in Web‑based format an inventory of State agency and non‑State agency programs and to assign accountability ratings to each program considering the degree of compliance with the standards established by the Taxpayer Investment Accountability Board; sufficiency and adequacy of information required of programs by G.S. 143‑47.33; conditions found by the Division while performing evaluations as directed by the Joint Legislative Program Evaluation Oversight Committee or General Assembly; State Auditor findings or reportable conditions; agency internal auditor findings; and information submitted by a program requesting the Division to revise a rating."
SECTION 5.  This act becomes effective July 1, 2017.