North Carolina SB 1037: DIGITAL NC Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1037

Short Title: DIGITAL NC Act. (Public)
Sponsors: Senators Lee, Hise, and Overcash (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1037-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE DATA INFRASTRUCTURE, GOVERNANCE, INNOVATION, 2
TECHNOLOGY, ACCOUNTABILITY, AND LEADERSHIP FOR NORTH CAROLINA 3
ACT (THE DIGITAL NC ACT) BY ESTABLISHING THE BOARD OF GOVERNORS 4
OF THE NORTH CAROLINA DIGITAL SOVEREIGNTY AUTHORITY AND 5
DIRECTING THE BOARD TO DEVELOP AND PRESENT TO THE GENERAL 6
ASSEMBLY A COMPREHENSIVE PLAN FOR THE MODERNIZATION, 7
CONSOLIDATION, AND CYBER DEFENSE OF THE STATE'S INFORMATION 8
TECHNOLOGY ENTERPRISE. 9
The General Assembly of North Carolina enacts: 10
SECTION 1. Legislative Findings and Purpose. – The General Assembly finds that 11
the continued technological competitiveness, operational efficiency, and cybersecurity posture 12
of the State of North Carolina require a coordinated, long-range strategy for information 13
technology that transcends individual administrations and agency silos. To that end, the General 14
Assembly further finds that a qualified, independent Board of Governors, composed of 15
individuals with demonstrated expertise in technology leadership, cybersecurity, and large-scale 16
digital transformation, should be established to develop a comprehensive plan for the 17
modernization and unification of the State's information technology enterprise and to present that 18
plan to the General Assembly for its consideration and enactment. 19
SECTION 2. Establishment of the Board of Governors of the North Carolina Digital 20
Sovereignty Authority. – There is hereby established the Board of Governors of the North 21
Carolina Digital Sovereignty Authority (the Board). The Board shall be administratively housed 22
within the Department of Information Technology for budgeting and logistical support but shall 23
exercise the powers granted under this act independently. 24
SECTION 3. Composition and Qualifications. – The Board shall consist of nine 25
members, appointed to staggered four-year terms, as follows: 26
(1) Gubernatorial appointees. – Three members appointed by the Governor, each 27
of whom must be a current or former chief executive officer of a technology 28
company with a market capitalization exceeding one billion dollars 29
($1,000,000,000). 30
(2) House appointees. – Three members appointed by the Speaker of the House 31
of Representatives, each of whom must be a recognized expert in 32
cybersecurity, artificial intelligence, or quantum computing. 33
(3) Senate appointees. – Three members appointed by the President Pro Tempore 34
of the Senate, each of whom must have extensive experience in large-scale 35
digital transformation or infrastructure management. 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1037-First Edition
(4) Initial terms. – Of the initial appointments, three shall serve two-year terms, 1
three shall serve three-year terms, and three shall serve four-year terms, as 2
designated by the respective appointing authority, so as to establish staggered 3
terms. Thereafter, all terms shall be for four years. 4
(5) Vacancies. – An appointed member whose term has expired but whose 5
qualified successor has not been appointed shall continue to serve on the 6
Board until a qualified successor is duly appointed. Any vacancy in a position 7
held by an appointive member shall be filled by a new appointment made by 8
the applicable appointing authority for the vacant seat. 9
(6) Removal. – A duly appointed member may be removed by the applicable 10
appointing authority for misfeasance, malfeasance, or nonfeasance. 11
(7) Reappointment. – Any member of the Board is eligible for reappointment, 12
except that no appointed member may serve for more than two consecutive, 13
full, four-year terms without at least a one-year break in membership on the 14
Board. 15
(8) Chair; meetings; quorum. – The Board shall elect a chair from among its 16
members. The Board shall meet at least quarterly and at such other times as 17
called by the chair. Five members shall constitute a quorum. 18
(9) Compensation. – Members of the Board shall serve without compensation but 19
shall be reimbursed for necessary travel and subsistence expenses in 20
accordance with G.S. 138‑5 or G.S. 138-6, as appropriate. 21
(10) Disqualifications. – An individual is not eligible to serve on the Board if that 22
individual has been indicted or charged with, been convicted of, pleaded guilty 23
or nolo contendere to, or forfeited bail concerning a felony, or a misdemeanor 24
involving fraud, theft, or dishonesty under the laws of any jurisdiction in the 25
United States. 26
SECTION 4. Duty to Develop Comprehensive Plan. – The Board is hereby 27
authorized and directed to develop a comprehensive plan (the Plan) for the modernization, 28
consolidation, and cyber defense of the State's inf