Bill Summary for H 56 (2013-2014)

Summary date: 

Jan 31 2013
S.L. 2013-234

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 56 (Public) Filed Thursday, January 31, 2013
AN ACT TO ESTABLISH THE CONTRACT MANAGEMENT SECTION OF THE DIVISION OF PURCHASE AND CONTRACT, DEPARTMENT OF ADMINISTRATION, TO AMEND THE LAWS REQUIRING NEGOTIATION AND REVIEW OF CERTAIN STATE CONTRACTS, TO PROVIDE OVERSIGHT AND REPORTING OF CERTAIN CONTRACT AWARDS, AND TO PROVIDE FOR CONTRACT MANAGEMENT AND ADMINISTRATION, AS RECOMMENDED BY THE JOINT LEGISLATIVE PROGRAM EVALUATION OVERSIGHT COMMITTEE.
Intro. by Howard.

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Bill summary

Amends GS 114-8.3, which requires the adoption of review and recordkeeping procedures for state contracts for the purchase of goods or services that exceed $1 million. Directs the Attorney General (AG), in consultation with the Department of Administration, to establish review procedures for state contracts that exceed $1 million, and to provide any attorney designated under GS 114-8.3(a) with the guidelines to be used in reviewing contracts. Requires the General Counsel for UNC constituent institutions to establish procedures for the required review and to comply with the procedures established by the AG. Requires all state agencies, the UNC constituent institutions, or any person entering into a contract on behalf of the state for goods or services exceeding $1 million to provide notice to the Secretary of the Department of Administration or the Secretary's designee of the intent to enter into the contract and any additional information as required. Directs the Department of Administration to adopt policies or guidelines for the identification and recordkeeping of contracts subject to review under the statute. Specifies what must be included in the records.

Amends GS 143-49 to increase the contract threshold amount from $100,000 to $5 million for the appointment of an attorney from the AG's office to advise and assist in contract negotiations. Does not require the Secretary to request counsel from the AG's office for contracts for services to be entered into by the constituent institutions of UNC, unless requested to do so by the General Counsel of the University.

Provides that the act's procedural and recordkeeping requirements as indicated above become effective July 1, 2013, and apply to contracts entered into on or after that date; the remainder of the act is effective when it becomes law.

Directs the Department of Administration to make individualized notifications to specified agencies to make each aware as to how the statutory amendments made in SL 2010-194, Section 15 of SL 2011-326, and this act apply to them. Provides guidelines regarding the notification process that include specifications regarding acknowledgement of receipt and understanding of the notice by the agencies.

Requires the AG's office, the Department of Administration, and the Office of the General Counsel for UNC to establish procedures to implement this act by June 30, 2013.

Provides, in GS 143-49, specific dates for (1) implementing a quality management program; (2) creating a contract specialist career path for one or more employees in each department, agency, or institution of the state; and (3) implementing a contract management training and certification program. Requires the Secretary to report recommendations on improvements to state procurement law to the Joint Legislative Commission on Governmental Operations and to the Program Evaluation Division by September 1, 2013.

Provides that any procedures to permit state government or any of its departments, institutions, or agencies to join with federal, state, or local government entities or any nonprofit organization in cooperative purchasing plans to serve the interest of the state are to be reported to the Joint Legislative Commission on Governmental Operations and the Program Evaluation Division no later than 30 days before the effective date of the procedures.

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