AN ACT TO MODERNIZE NORTH CAROLINA GOVERNMENT INFRASTRUCTURE and to appropriate funds for that purpose.

The General Assembly of North Carolina enacts:

SECTION 1.  Title. – This act shall be known and may be cited as the Government Modernization Act of 2026.

SECTION 2.(a)  Findings. – The General Assembly finds that:

(1)        Many State agencies continue to operate with outdated legacy IT systems, leading to inefficiencies in service delivery and data management.

(2)        Cybersecurity threats pose a growing risk to public data, necessitating stronger protections and advanced security measures.

(3)        Blockchain technology presents an opportunity to enhance transparency, reduce fraud, and streamline government transactions.

(4)        Expanding online government services will improve accessibility for North Carolina residents and businesses, reducing bureaucratic hurdles and increasing operational efficiency.

SECTION 2.(b)  Purpose. – The purpose of this act is to modernize North Carolina's government operations by implementing advanced technological solutions to enhance efficiency, security, and accessibility in public services.

SECTION 3.(a)  Blockchain Integration. – The Department of Information Technology (DIT), in consultation with the Department of Administration, shall study ways in which integrating blockchain technology may contribute to the following outcomes:

(1)        Greater security in maintaining records of transactions and contracts to which the State is a party.

(2)        Enhanced verification mechanisms for licenses, permits, and certifications.

(3)        Greater transparency for procurement processes to reduce fraud and ensure accountability.

(4)        Any other benefits to the State.

SECTION 3.(b)  No later than 12 months after this act becomes law, the DIT shall submit a report of its findings to the Joint Legislative Oversight Committee on Information Technology.

SECTION 4.  Funding and Implementation. – Effective July 1, 2026, there is appropriated from the Information Technology Reserve Fund to the Department of Information Technology the sum of fifty million dollars ($50,000,000) in nonrecurring funds for the 2026‑2027 fiscal year for implementation of this act. These funds are not subject to reversion under the State Budget Act and will remain available until expended.

SECTION 5.  Reporting and Accountability. – The DIT shall submit an annual progress report to the General Assembly detailing the implementation status, challenges, and recommendations related to government modernization efforts. The Joint Legislative Oversight Committee on Digital Governance shall be established to oversee implementation and ensure compliance with this act.

SECTION 6.  Effective Date. – This act becomes effective July 1, 2026, and expires June 30, 2031.