RALEIGH — The North Carolina House Oversight Committee resumed questioning on March 13 of the heads of state agencies on their operations as part of a series of “agency reset” hearings, the first of which was held in February.
Those invited to present and testify before the committee included Department of Information Technology (DIT) Secretary-designee Teena Piccione, Office of State Human Resources Director Staci Meyer, Department of Administration Secretary-designee Gabriel Esparza, and State Controller Nels Roseland.
The officials invited to the meeting were all sworn in and asked basic questions about the “primary mission” of their respective agencies. Questioning also included how the agencies were keeping companies and vendors accountable for services being provided to the state.
During questions directed at Piccione, lawmakers asked about delays in the Completing Access to Broadband program.
“We’ve appropriated the $400 million and it appears that there was some delay in getting that out,” said Rep. Dean Arp (R-Union). “It’s still not out. I know you got an award. Can you speak to why we had the delay?”
“As we look at it, we’re trying to get awards out this week and next week,” Piccione said. “And one thing that I’ve done is ask for that transparency to where we can do it faster.”
Arp pressed for a completion timeline, which Piccione said she’d be happy to come back and provide.
Rep. Allen Chesser (R-Nash) asked Piccone about a study DIT was doing on the backend operations of the N.C. Department of Motor Vehicles (NCDMV), which itself has been the subject of multiple oversight hearings. Wayne Goodwin, who headed up the agency for three years, recently announced he was not seeking to retain his job.
“Have you formulated an opinion at this point on whether that needs to be completely ripped and replaced or if we can continue to leverage technology, what we’ll call add-ons, and utilize that technology efficiently?” Chesser asked.
Piccione said she did get an update from the company doing that study but would not have a “full briefing” until the end of the month. She said she’d share the results with the committee and acknowledge the NCDMV is “a high concern” for frustrated customers.
“I will ensure that that is one of our top priorities to make sure we are partnering with the DOT to provide the best solution,” Piccione said with regard to the NCDMV.
In her opening remarks in response to the question of her agency’s primary mission, Meyer focused on recruitment and retention of state employees, modernizing legacy systems.
“Our system must be modernized and simplified in order to address these challenges,” Meyer told lawmakers. “We need to use every tool available to us; reduce redundancies, expand our flexibilities, provide critical resources and support to personnel staff and modernize our legacy systems to compete for talent.”
When asked how the NCGA can help make the state the “best employer,” Meyer said updating the Human Resources Act was most important.
“The single most important thing that I think will change the way our state Human Resources Act works is for the legislature to look at the changes that we would propose to Chapter 126 to modernize it and simplify it,” Meyers said. “Again, it’s 60 years old and even five years ago, if you haven’t looked at your statute.”
Recruitment practices, retention pay in line with market research, as well as benefit options were all discussed in terms of attracting and retaining state employees.
Esparza characterized his agency’s main mission as “a service provider to the state.”
Rep. Zack Hawkins (D-Durham) asked several questions to Esparza.
“How can we better serve and partner with the small business community?” Hawkins asked. “Ninety-five percent of all businesses are small businesses under 50 employees and that’s one thing that I know all of our colleagues have in common.”
“Rep. Hawkins, you’re tugging at my heartstrings a little bit because prior to joining state government, I was in the federal government working at the U.S. Small Business Administration,” Esparza replied, adding Hawkins’ statistic was correct.
“So we have a role in that,” said Esparza. “We certify small businesses at the state level, and obviously, we promote procurement-related opportunities, state government spending through small businesses.”
Esparza went on to say marketing and outreach play an important role in state contract and procurement opportunities, and he underscored the need to continue and expand the state’s relationship with the Small Business Administration.
Roseland’s questioning came last, and he described his agency’s primary mission as being “three critical business functions,” that include paying the state’s bills, paying the state’s employees, and overseeing the state’s financial statement and accounting records.
Rep. John Blust (R-Guilford) brought up President Donald Trump’s Department of Government Efficiency and the waste it had found.
“I’ve been astounded that somehow the U.S. Treasury, or whoever’s in charge, is releasing mammoth amounts of money and they don’t have the proper coding and proper documentation and all kinds of problems,” said Blust.
“Do we have any problem in those regards at the state level?” Blust asked Roseland. “Are we sure that when money is paid out from the state that it’s to someone or some organization that absolutely is authorized by law to receive that payment?”
“Yes, sir,” replied Roseland. “There are multiple checks and balances in the state of North Carolina, and I’m grateful the business model we utilize in the state of North Carolina doesn’t mirror the federal government business model.”
Roseland also said he is “not aware of any material significant issue in the state of North Carolina payment system that would be in any way similar to what has been uncovered or what’s been in the press at the federal level.”
Hawkins asked Roseland about the payment process for the state’s 85,000 business partners, particularly small businesses affected by natural disasters. Roseland explained his agency tracks all vendors and suppliers doing business with the state and aims to set up new vendors in their system within five to 10 business days, with five days being the goal regardless of business size.
Roseland also mentioned the agency was keeping an eye out for AI technology that might aid or further improve their daily processes.
Multiple lawmakers asked Roseland if the Comptroller’s Office issues checks only appropriated by the legislature or if there were checks issued from funds other than those controlled by the General Assembly.
“All of our financial activity, all of our disbursement checks that we cut are authorized by appropriation bills adopted by the General Assembly,” said Roseland. “We don’t have any secondary accounts where I have legal authority to write checks from, nor do I want that authority.”
The Oversight Committee’s website indicates it will not meet on March 20 and sessions with state agencies will resume on March 27.
Presentation materials from the March 13 meeting can be accessed on the House Oversight Committee’s webpage under “Documents.”
