Bill Summary for H 56 (2013-2014)

Summary date: 

Feb 27 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

The House committee substitute makes the following changes to the 1st edition.

Changes the long title accordingly.

Section 1

Eliminates the review of contracts for supplies, materials, printing and equipment exceeding $1 million by the Attorney General or his/her designees in lieu of triggering the review for proposed contracts for contractual services that exceed $5 million. Makes conforming changes. Requires Attorney General to advise and assist the Contract Management Section of the Division of Purchase and Contract with establishing procedures and guideline for the review of contracts. Adds back in the Department of Administration (DOA) to GS 114-8.3(b) (previously, Department of Administration had been stricken and removed). Amends GS 114-8.3(c) requiring State agencies, constituent institutions of UNC, or any person who will be entering into a contract on behalf of the State for $1 million or more must provide such information required by the Department of Administration for the purposes of maintaining a centralized log of such contracts (was, information required by the Secretary of the Department of Administration). Replaces GS 114-8.3(d) with a clause stating that nothing that requires a designated attorney to review proposed contracts limits the authority of the State Treasurer to retain the services of attorneys for the proper administration of investment programs (was, clause requiring Department of Administration to adopt procedures for identification and record keping of contracts subject to review). Other technical and clarifying changes.

Section 2

Adds to GS 143-49(3a) the Contract Management Section of the DOA's Division of Purchase and Contract, and other qualified counsel to the list of agencies from which the Attorney General can choose to assign a designee to assist in negotiations of pending contracts exceeding $5 million.  Adds the requirement that to be valid, any contract for services reviewed pursuant to these subdivision must include the signature and title of the attorney designated from within the office of the Attorney General to review the contract. Adds requirements that for proposed Treasurer investment and debt contracts that in aggregate exceed $5 million, the Department of State Treasurer can ask for approval and employment of outside counsel to represent the Department. Defines exactly what investment contracts and debt contracts mean.

Section 3

New and different section from 1st edition. Section 3 of 1st edition is now section 11 of House committee substitute.

Amends GS 143, Article 3 by adding a new section, GS 143.50.1, Division of Purchase and Contract; Contract Management Section. Provides that the Contract Management Section (CMS) is established in the Division of Purchase and Contract, Department of Administration. CMS will include legal counsel with defined duties and responsibilities. Remainder of Section 3 states the duties and responsibilities of CMS and its legal counsel.

Section 4

New and different section from 1st edition. Section 4 of 1st edition is now section 12 of House committee substitute

Amends GS 143-52.1, changing name of section to Award recommendations; State Purchasing Officer action. Deleting entire content of GS 143-52.1 and replacing with language that states that when the dollar value of a contract to be awarded exceeds the benchmark of GS 143-53.1, an award recommendation will be submitted to the State Purchasing Officer for approval or other action.  A report of all contract awards greater than $25,000 approved through the Division of Purchase and Contract will be reported monthly to the Cochairs of the Joint Legislative Committee on Governmental Operations. Report will include amount of the award, award recipient, using agency, and short description of the nature of the award.

Section 5

New and different section from 1st edition. Section 5 of 1st edition is now section 13 of House committee substitute.

Amends GS 147-33.101 by renaming section Award recommendation; State Chief Information Officer action. Further amends section to require an award recommendation to be submitted to the State Chief Information Officer (CIO), when the dollar value of a contract for IT equipment, materials and supplies exceeds the benchmark established by the CIO.  A report of all contract awards greater than $25,000 approved through the Statewide IT Procurement Office will be reported monthly by the State CIO to the Cochairs of the Joint Legislative Oversight Committee on IT. Report will include amount of the award, award recipient, using agency, and short description of the nature of the award.

Section 6

New and different section from 1st edition.

Amends GS 116-13 Powers of Board regarding property and services subject to general law, deleting Board of Awards from list of approvals exempt from purchases by special responsibility constituent institutions.

Section 7

New section.

Amends 120-36.6, Legislative Fiscal Research staff participation, deleting Board of awards and making technical changes associated with that deletion.

Section 8

New section.

Amends GS 143-52, Competitive bidding procedure; consolidation of estimates by Secretary; bids; awarding of contracts; cost plus percentage of cost contracts strictly prohibited, deleting Board of Awards and replacing it with State Purchasing Officer as the entity that reviews contracts of goods that exceed the benchmark established by GS 143-53.1.

Section 9

New section.

Amends GS 143-59, Preference given to North Carolina products and citizens, and articles manufactured by State agencies; reciprocal preferences. Deleting in GS 143-59(b) language referring to Board of Awards and making conforming changes.

Section 10

New section.

Repeals GS 143-318.19(10), which deletes Board of Awards from an exemption list for Article 33c of GS 143.

Section 11

New section. Previously was section 3 of 1st edition. No additional changes made.

Section 12

New section. Previously was section 4 of 1st edition. No additional changes made.

Section 13

New section. Previously was section 5 of 1st edition.

Amends GS 143-49, Powers and duties of Secretary, changing implementation dates as amended in 1st edition to be follows:

GS 143-49(13) - September 1, 2013 to January 1, 2014, and April 1, 2013 to June 1, 2013,

GS 143-49(14) - April 1, 2013 to September 1, 2013,

GS 143-49(15) - September 1, 2013 to July 1, 2014`

Deletes requirement to report procedure established under this subdivision to be reported to the Joint Legislative Commission on Governmental Operation and the Program Evaluation Division.

Section 14

States that section 1-3 will become effective October 1, 2013 and applies to contracts entered on or after that date. Remainder effective when the act becomes law.

 

 

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