GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
SESSION LAW 2007-322
HOUSE BILL 749
AN ACT to implement efficiencies within the university system and state government as recommended by the president's advisory committee on efficiency and effectiveness (PACE).
The General Assembly of North Carolina enacts:
PART I. INCREASE INFORMAL LIMIT FOR SMALL CONSTRUCTION
SECTION 1. G.S. 133-1.1(a) reads as rewritten:
"(a) In the interest of public health, safety and economy, every officer, board, department, or commission charged with the duty of approving plans and specifications or awarding or entering into contracts involving the expenditure of public funds in excess of:
(1) Three hundred thousand dollars ($300,000) for the repair of public buildings where such repair does not include major structural change in framing or foundation support systems, or five hundred thousand dollars ($500,000) for the repair of public buildings by The University of North Carolina or its constituent institutions where such repair does not include major structural change in framing or foundation support systems,
(1a) One hundred thousand dollars ($100,000) for the repair of public buildings affecting life safety systems,
(2) One hundred thirty-five thousand dollars ($135,000) for the repair of public buildings where such repair includes major structural change in framing or foundation support systems, or
(3) One hundred thirty-five thousand dollars ($135,000) for the construction of, or additions to, public buildings or State-owned and operated utilities,
shall require that such plans and specifications be prepared by a registered architect, in accordance with the provisions of Chapter 83A of the General Statutes, or by a registered engineer, in accordance with the provisions of Chapter 89C of the General Statutes, or by both architect and engineer, particularly qualified by training and experience for the type of work involved, and that the North Carolina seal of such architect or engineer together with the name and address of such architect or engineer, or both, be placed on all these plans and specifications."
SECTION 2. G.S. 143-64.34(b) reads as rewritten:
"(b) A capital improvement
project of The University of North Carolina under G.S. 116-31.11 where the
estimated expenditure of public money is less than three hundred thousand
dollars ($300,000) five hundred thousand dollars ($500,000) is
exempt from this Article if all of the following apply:
(1) The architectural, engineering, or surveying services to be rendered are under an open-end design agreement.
(2) The open-end design agreement has been publicly announced.
(3) The open-end design agreement complies with procedures adopted by the University and approved by the State Building Commission under G.S. 116-31.11(a)(3)."
SECTION 3. G. S. 143-128(g) reads as rewritten:
"(g) Exceptions. - This section shall not apply to:
(1) The purchase and erection of prefabricated or relocatable buildings or portions thereof, except that portion of the work which must be performed at the construction site.
(2) The erection, construction, alteration, or repair of a building when the cost thereof is three hundred thousand dollars ($300,000) or less.
(3) The erection, construction, alteration, or repair of a building by The University of North Carolina or its constituent institutions when the cost thereof is five hundred thousand dollars ($500,000) or less.
Notwithstanding the other provisions of this subsection, subsection (f1) of this section shall apply to any erection, construction, alteration, or repair of a building by a public entity."
SECTION 4. G.S. 143-129(a) reads as rewritten:
"(a) Bidding Required. -
No construction or repair work requiring the estimated expenditure of public
money in an amount equal to or more than three hundred thousand dollars
($300,000) or purchase of apparatus, supplies, materials, or equipment
requiring an estimated expenditure of public money in an amount equal to or
more than ninety thousand dollars ($90,000) may be performed, nor may any
contract be awarded therefor, by any board or governing body of the State, or
of any institution of the State government, or of any political subdivision of
the State, unless the provisions of this section are complied with.with;
provided that The University of North Carolina and its constituent institutions
may award contracts for construction or repair work that requires an estimated
expenditure of less than five hundred thousand dollars ($500,000) without
complying with the provisions of this section.
For purchases of apparatus, supplies, materials, or equipment, the governing body of any political subdivision of the State may, subject to any restriction as to dollar amount, or other conditions that the governing body elects to impose, delegate to the manager, school superintendent, chief purchasing official, or other employee the authority to award contracts, reject bids, or readvertise to receive bids on behalf of the unit. Any person to whom authority is delegated under this subsection shall comply with the requirements of this Article that would otherwise apply to the governing body."
PART II. increase force account limits
SECTION 5. G.S. 143-135 reads as rewritten:
"§ 143-135. Limitation of application of Article.
Except for the provisions of G.S. 143-129 requiring bids
for the purchase of apparatus, supplies, materials or equipment, this Article
shall not apply to construction or repair work undertaken by the State or by
subdivisions of the State of North Carolina (i) when the work is performed by
duly elected officers or agents using force account qualified labor on the
permanent payroll of the agency concerned and (ii) when either the total cost of
the project, including without limitation all direct and indirect costs of
labor, services, materials, supplies and equipment, does not exceed one hundred
twenty-five thousand dollars ($125,000) or the total cost of labor on the
project does not exceed fifty thousand dollars ($50,000).($50,000);
provided that, for The University of North Carolina and its constituent
institutions, force account qualified labor may be used (i) when the work is
performed by duly elected officers or agents using force account qualified
labor on the permanent payroll of the university and (ii) when either the total
cost of the project, including, without limitation, all direct and indirect
costs of labor, services, materials, supplies, and equipment, does not exceed
two hundred thousand dollars ($200,000) or the total cost of labor on the
project does not exceed one hundred thousand dollars ($100,000). This force
account work shall be subject to the approval of the Director of the Budget in
the case of State agencies, of the responsible commission, council, or board in
the case of subdivisions of the State. Complete and accurate records of the
entire cost of such work, including without limitation, all direct and indirect
costs of labor, services, materials, supplies and equipment performed and
furnished in the prosecution and completion thereof, shall be maintained by
such agency, commission, council or board for the inspection by the general
public. Construction or repair work undertaken pursuant to this section shall
not be divided for the purposes of evading the provisions of this
Article."
PART III. REPEAL AND MODIFY CERTAIN REPORTING REQUIREMENTS
SECTION 6. G. S. 116-30.6 is repealed.
SECTION 7. G.S. 143-64.70(a) reads as rewritten:
"(a) By January 1 of each
year, each State department, agency, and institution shall make a detailed
written report to the Office of State Budget and Management and the Office of
State Personnel on its utilization of personal services contracts that have an
annual expenditure greater than five thousand dollars ($5,000). twenty-five
thousand dollars ($25,000). The report by each State department, agency,
and institution shall include the following:
(1) The total number of
personal services contractors in service during the reporting period. Identification
of the department and employee responsible for oversight of the performance of
the contract.
(2) The type, duration,
status, and cost of each contract. Vendor or contractor name, object of
expenditure description, contract award amount, purchase order or contract
number, purchase order start and end date, source of funds, and amount
disbursed during the fiscal year.
(3) The number
of contractors utilized per contract.
(4) A
description of the functions and projects requiring contractual services.
(5) The number
of contractors for each function or project.
(6) Identification
of the State employee responsible for oversight of the performance of each
contract and the number of contractors reporting to each contract manager or
supervisor.
(7) The budget
code, fund number, and expenditure account number from which the contract funds
were disbursed."
PART IV. ELIMINATE REQUIREMENT FOR PRIOR APPROVAL OF AN EMPLOYEE'S HOME AS THE EMPLOYEE'S DUTY STATION
SECTION 8. G.S. 138-6(a)(1) reads as rewritten:
"(a) Travel on official business by the officers and employees of State departments, institutions and agencies which operate from funds deposited with the State Treasurer shall be reimbursed at the following rates:
(1) For transportation by
privately owned automobile, the business standard mileage rate set by the
Internal Revenue Service per mile of travel and the actual cost of tolls paid.
Any other law which sets a mileage rate by referring to the rate set herein,
instead establishes a rate of twenty-five cents (25¢) per mile. No
reimbursement shall be made for the use of a personal car in commuting from an
employee's home to his duty station in connection with regularly scheduled work
hours. Any designation of an employee's home as his duty station by a
department head shall require prior approval by the Office of State Budget and
Management on an annual basis."
part v. construction and leasing
SECTION 9. Article 1 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116-31.12. Acquisition of real property by lease.
Notwithstanding G.S. 143-341(4), the Board of Governors may authorize the constituent institutions and the General Administration to acquire real property by lease if the lease is for a term of not more than 10 years. The Board of Governors shall establish a policy for acquiring an interest in real property for the use of The University of North Carolina and its constituent institutions by lease. This policy may delegate authorization of the acquisition of real property by lease to the boards of trustees of the constituent institutions or to the President of The University of North Carolina. The Board of Governors shall submit all initial policies adopted pursuant to this section to the State Property Office for review prior to adoption by the Board. Any subsequent changes to these policies adopted by the Board of Governors shall be submitted to the State Property Office for review. Any comments by the State Property Office shall be submitted to the President of The University of North Carolina. After the acquisition of an interest in real property by lease, The University of North Carolina shall promptly file a report concerning the acquisition to the Secretary of Administration. Acquisitions of an interest in real property by lease pursuant to this section shall not be subject to the provisions of Article 36 of Chapter 143 of the General Statutes or to the provisions of Article 6 of Chapter 146 of the General Statutes."
SECTION 10. G.S. 120-76.1(b) reads as rewritten:
"(b) Any agency, board, commission, or other entity required under G.S. 120-76(8) or any other provision of law to consult with the Commission prior to taking an action shall submit a detailed report of the action under consideration to the Chairs of the Commission, the Commission Assistant, and the Fiscal Research Division of the General Assembly. If the Commission does not hold a meeting to hear the consultation within 90 days of receiving the submission of the detailed report, the consultation requirement is satisfied. With regard to capital improvement projects of The University of North Carolina, if the Commission does not hold a meeting to hear the consultation within 30 days of receiving the submission of the detailed report, the consultation requirement of G.S. 120-76(8)e. is satisfied."
SECTION 11. G.S. 146-22 reads as rewritten:
"§ 146-22. All acquisitions to be made by Department of Administration.
Every acquisition of land on behalf of the State or any State
agency, whether by purchase, condemnation, lease, or rental, shall be made by
the Department of Administration and approved by the Governor and Council of
State; provided that if the proposed acquisition is a purchase of land with an
appraised value of at least twenty-five thousand dollars ($25,000), and the
acquisition is for other than a transportation purpose, the acquisition may
only be made after written notice to the Joint Legislative Commission on
Governmental Operations given to the Chairs of the Commission at least 30 days
prior to the acquisition, who shall forward a copy of the notice to the members
of the Commission within three days of their receipt of the notice, and provided
further, that acquisitions on behalf of the University of North Carolina Health
Care System shall be made in accordance with G.S. 116-37(i), acquisitions
on behalf of the University of North Carolina Hospitals at Chapel Hill shall be
made in accordance with G.S. 116-37(a)(4), acquisitions on behalf of the
clinical patient care programs of the School of Medicine of the University of
North Carolina at Chapel Hill shall be made in accordance with G.S. 116-37(a)(4),
and acquisitions on behalf of the Medical Faculty Practice Plan of the
East Carolina University School of Medicine shall be made in accordance with G.S. 116-40.6(d).
G.S. 116-40.6(d), and acquisitions by lease on behalf of The
University of North Carolina shall be made in accordance with G.S. 116-31.12.
In determining whether the appraised value is at least twenty-five thousand
dollars ($25,000), the value of the property in fee simple shall be used. The
State may not purchase land as a tenant-in-common without consultation with the
Joint Legislative Commission on Governmental Operations if the appraised value
of the property in fee simple is at least twenty-five thousand dollars
($25,000)."
SECTION 12. The University of North Carolina shall report to the Joint Legislative Commission on Governmental Operations by July 1, 2008, on the implementation of Sections 10 through 11 of this act.
SECTION 13. This act is effective when it becomes law. Sections 1 through 4 of this act apply to construction projects for which bids or proposals are solicited on or after that date. Section 5 of this act applies to construction or repair work commenced on or after that date.
In the General Assembly read three times and ratified this the 19th day of July, 2007.
s/ Beverly E. Perdue
President of the Senate
s/ Joe Hackney
Speaker of the House of Representatives
s/ Michael F. Easley
Governor
Approved 6:18 p.m. this 30th day of July, 2007