GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 1 SENATE BILL 667 Short Title: Government Modernization. (Public) Sponsors: Senators Theodros, Chaudhuri, and Salvador (Primary Sponsors). Referred to: Rules and Operations of the Senate March 26, 2025 *S667 -v-1* A BILL TO BE ENTITLED 1 AN ACT TO MODERNIZE NORTH CAROLINA GOVER NMENT INFRASTRUCTURE 2 THROUGH TECHNOLOGY U PGRADES, CYBERSECURI TY ENHANCEMENTS, 3 BLOCKCHAIN INTEGRATI ON, AND PUBLIC SERVICE DIGITIZATION. 4 The General Assembly of North Carolina enacts: 5 SECTION 1. Title. – This act shall be known and may be cited as the Government 6 Modernization Act of 2025. 7 SECTION 2.(a) Findings. – The General Assembly finds that: 8 (1) Many State agencies continue to operate with outdated legacy IT systems, 9 leading to inefficiencies in service delivery and data management. 10 (2) Cybersecurity threats pose a growing risk to public data, necessitating stronger 11 protections and advanced security measures. 12 (3) Blockchain technology presents an opportunity to enhance transparency, 13 reduce fraud, and streamline government transactions. 14 (4) Expanding online government services will improve accessibility for North 15 Carolina residents and businesses, reducing bureaucratic hurdles and 16 increasing operational efficiency. 17 SECTION 2.(b) Purpose. – The purpose of this Act is to modernize North Carolina's 18 government operations by implementing advanced technological solutions to enhance efficiency, 19 security, and accessibility in public services. 20 SECTION 3. Digital Infrastructure Overhaul. – The Department of Information 21 Technology (DIT) shall oversee the modernization of IT infrastructure across all State agencies, 22 including: 23 (1) Upgrading outdated legacy systems to enhance interoperability and 24 efficiency. 25 (2) Implementing cloud-based solutions for improved data management and 26 service continuity. 27 (3) Establishing centralized digital records management to facilitate inter-agency 28 coordination and reduce redundancies. 29 SECTION 4.(a) Assessment. – State agencies shall conduct a comprehensive 30 assessment of their current IT infrastructure within six months of the enactment of this Act and 31 submit modernization plans to DIT for review and implementation. 32 SECTION 4.(b) Cybersecurity and Data Protection. – The State Chief Information 33 Officer (CIO) shall develop and implement enhanced cybersecurity protocols, including: 34 (1) Multi-factor authentication and encryption standards for all government 35 digital platforms. 36 General Assembly Of North Carolina Session 2025 Page 2 Senate Bill 667-First Edition (2) Continuous monitoring and rapid response measures for cyber threats. 1 (3) Mandatory cybersecurity training for all State employees handling digital 2 information. 3 SECTION 4.(c) Task Force. – The State Cybersecurity Task Force shall be 4 established to oversee the implementation of security measures and report annually to the General 5 Assembly on progress and emerging threats. 6 SECTION 5.(a) Blockchain Integration. – The DIT, in consultation with the 7 Department of Administration, shall study ways in which integrating blockchain technology may 8 contribute to the following outcomes: 9 (1) Greater security in maintaining records of transactions and contracts to which 10 the State is a party. 11 (2) Enhanced verification mechanisms for licenses, permits, and certifications. 12 (3) Greater transparency for procurement processes to reduce fraud and ensure 13 accountability. 14 (4) Any other benefits to the State. 15 SECTION 5.(b) No later than 12 months after this act becomes law, the DIT shall 16 submit a report of its findings to the Joint Legislative Oversight Committee on Information 17 Technology. 18 SECTION 6.(a) Public Service Digitization and Accessibility. – State agencies shall 19 expand and improve online government services, including: 20 (1) Digital application and processing for licenses, permits, and public records. 21 (2) Online portals for tax payments, business filings, and other essential 22 government functions. 23 (3) Mobile-friendly platforms to enhance accessibility for residents and 24 businesses. 25 SECTION 6.(b) The Office of Digital Transformation shall be established within 26 the DIT to oversee the digitization of government services and ensure seamless user experience 27 across platforms. 28 SECTION 7. Funding and Implementation. – The General Assembly shall 29 appropriate necessary funds for the implementation of this act, with priority funding allocated to: 30 (1) IT infrastructure upgrades. 31 (2) Cybersecurity enhancements. 32 (3) Blockchain pilot programs. 33 (4) Expansion of technology partners to ensure cost-effective and innovative 34 solutions in the implementation of this act. 35 SECTION 8. Reporting and Accountability. – The DIT shall submit an annual 36 progress report to the General Assembly detailing the implementation status, challenges, and 37 recommendations related to government modernization efforts. The Joint Legislative Oversight 38 Committee on Digital Governance shall be established to oversee implementation and ensure 39 compliance with this act. 40 SECTION 9. Effective Date. – This act becomes effective July 1, 2025, and expires 41 June 30, 2030. 42