AMEND STATE CONTRACT REVIEW LAWS.

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.

Status: Ch. SL 2013-234 (House Action) (Jul 3 2013)

SOG comments (2):

Identical bill

HB 56, as filed, is identical to SB 78, filed 2/12/13.

Long title change.

The House committee substitute to the 1st edition changes the long title. The original title was: A BILL TO BE ENTITLED AN ACT TO AMEND THE LAWS REQUIRING NEGOTIATION AND REVIEW OF CERTAIN STATE CONTRACTS, AND TO PROVIDE FOR CONTRACT MANAGEMENT AND ADMINISTRATION, AS RECOMMENDED BY THE JOINT LEGISLATIVE PROGRAM EVALUATION OVERSIGHT COMMITTEE.

Bill History:

H 56/S.L. 2013-234

Bill Summaries:

  • Summary date: Jul 8 2013 - More information

    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. Enacted July 3, 2013. Sections 1 through 3 are effective October 1, 2013. The remainder is effective July 3, 2013.


  • Summary date: Jun 19 2013 - More information

    Senate amendment to the 3rd edition makes a technical correction.


  • Summary date: Jun 18 2013 - More information

    Senate committee susbtitute makes the following changes to the 2nd edition.

    Adds new subsection (b1) to GS 114-8.3, concerning attorney general/general counsel review of certain contracts, providing that the General Counsel of the Department of State or designee must review all proposed investment contracts, as defined in subdivision 4 of the subsection, as well as all proposed contracts for investment-related services entered pursuant to authority granted under GS 147-69.3 to confirm that the proposed contracts:

    (1) are in proper legal form,

    (2) contain all clauses required by NC law,

    (3) are legally enforceable to the extent governed by NC law, and

    (4) accomplish the intended purposes of the proposed contract.

    Requires procedures to be established for the review of contracts subject to this subsection. Set outs the terms and requirements that apply to contracts under this subsection.

    Amends GS 143-49(3a), concerning the powers and duties of the Secretary of Administration, requiring an attorney from within the Office of the Attorney General to review all contracts and drafts of contracts, with the office retaining a copy of the contract for three years after the termination of the contract. Further provides that the state has the right to terminate the contract if it commences without the required signature, with the other parties only entitled to the value of all services rendered to the state prior to the termination. Provides that the Secretary of Administration is not required to notify the Attorney General for the appointment of a representative for any contract for contractual services which are to be entered into by constituent institutions of the University of North Carolina or the Department of State Treasurer, unless requested to do so by the General Counsel of UNC or the Department of State Treasurer.

    Deletes previously included new subsection GS 143-49(3b) and deletes GS 143-49(13).  Amends GS 143-49(16), to provide that recommendations created pursuant to the work completed in conjunction with the School of Government on improving procurement laws must be reported by the Secretary to the Joint Legislative Commission on Governmental Operations and the Program Evaluation Division by June 30, 2014.

    Amends GS 143-52.1, providing that the State Purchasing Officer must promptly notify the agency, or institution making the recommendation, of the action taken, when recommending the awarding of a contract where the dollar value exceeds the established benchmark. Further provides that the State Procurement Officer must provide a monthly report of all contract awards that exceed $25,000 and are approved through the Division of Purchase and Contract to the Cochairs of the Joint Legislative Committee on Governmental Operations.

    Amends GS 147-33.101, concerning award recommendations and the Chief Information Officer (CIO), providing that the CIO, when an award recommendation has been submitted for approval or other action, must promptly notify the agency, or institution making the recommendation, of the action taken, when recommending the awarding of a contract where the dollar value exceeds the established benchmark. Further provides that the CIO must provide a report of all contract awards approved through the Statewide IT Procurement Office as follows:

    (1) for contract awards greater than $25,000 a report must be submitted to the Cochairs of the Joint Legislative Oversight Committee on Information Technology on a monthly basis and

    (2) for all contract awards outside the established purchasing system, a report must be submitted to the Secretary of the Department of Administration on a quarterly basis.

    Deletes changes made to GS 143-49, which specified certain dates for the implementation of varied programs or positions.

    Makes technical, clarifying, and conforming changes throughout the act.

     

     


  • Summary date: Feb 27 2013 - More information

    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.

     

     


  • Summary date: Jan 31 2013 - More information

    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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