AN ACT TO INCREASE LEGISLATIVE OVERSIGHT OF CERTAIN LEASES; TO ENSURE THAT ESTIMATES OF OPERATING AND MAINTENANCE COSTS ARE CENTRAL TO THE STATE CAPITAL PROJECT PLANNING PROCESS; TO REQUIRE A PRELIMINARY SIX-YEAR CAPITAL IMPROVEMENTS PLAN; AND TO REQUIRE GREATER OVERSIGHT OF CAPITAL IMPROVEMENT NEEDS CRITERIA; AS RECOMMENDED BY THE JOINT LEGISLATIVE OVERSIGHT COMMITTEE ON CAPITAL IMPROVEMENTS.
Identical to H 947, filed 4/25/16.
Part I increases legislative oversight of certain leases:
Amends GS 146-25 to add subsections, placing existing general procedure for leases and rentals into subsection (a), and adds a new subsection (b) that addresses leases exceeding 30 term years. New subsection (b) bars the Department of Administration (Department) from entering into a lease of real property for a period of more than 30 years, or a renewal of a lease of new property if the renewal would make the total lease term more than 30 years. Allows the Department to enter into a lease for a period of more than 30 years if the General Assembly specifically authorizes the Department to do so, requires the Department to report to the Joint Legislative Commission on Governmental Operations at least 30 days before entering or renewing such a lease, and requires including a copy of the legislation authorizing the lease or lease renewal in the report.
Amends GS 146-29 to add subsections, placing existing general procedure for sale, lease, or rental into subsection (a), and adds new subsections (b) and (c). New subsection (b) establishes that the Department of Administration cannot, unless specifically authorized by the General Assembly, (1) enter into a lease of real property for a period of more than 30 years, or a renewal of a lease of real property if the renewal would make the total lease term more than 30 years, or (2) enter into a lease of real property, or a renewal of a lease of real property, for any term if state personnel or state functions would need to be relocated as a result of the lease or renewal, and the agency where the property is currently allocated possesses insufficient funds to cover the cost of both the relocation and the ongoing provision of state functions affected by the relocation. New Subsection (c) requires the Department to report to the Join Legislative Commission on Governmental Operations at least 30 days before entering or renewing a lease that will be more than 30 years, in which case the report must include the authorizing legislation, or will require relocation of state personnel or state functions, in which case the report must include authorizing legislation or a detailed statement of operating funds that will be used to cover the cost of relocation and the ongoing provision of state functions affected by the relocation.
Amends GS 146-29.1 (concerning the lease or sale of real property for less than fair market value) by adding a new subsection (h) to establish that any lease or rental entered into under the statute is subject to the requirements and limitations of GS 146-29, as amended.
Amends GS 146-29.2 (concerning the lease or interest in real property for communication purpose) by adding a new subsection (g) to establish that any lease or rental entered into under the statute is subject to the requirements and limitations of GS 146-29, as amended.
Amends GS 146-32 (Exemptions as to leases, etc.) by creating new subsections to the statute. Subsection (a) contains the existing language. Provides a new subsection (b) that establishes that no rule or regulation adopted under GS 146-32(a) may exempt any lease from the rules under GS 146-25(b) or GS 146-29(b) or (c).
Part II ensures that estimates of operating and maintenance costs are central to the state capital project planning process:
Amends GS 143C-8-4 to require each project included in the Real Property and New Construction or Facility Rehabilitation Needs Estimate to be justified by reference to the needs evaluation criteria established by the Office of State Budget and Management, pursuant to GS 143C-8-3, and include the information required by GS 143C-3-3(d)(5) (was, pursuant to GS 143C-8-3). The Office of State Budget and Management must use the needs evaluation information by the UNC Board of Governors developed under GS 116-11(9) and must include the information required by GS 143C-3-3(d)(5). GS 143C-3-3(d)(5) states that an estimate of maintenance and operating costs, including personnel, for the project, covering the first five years of operation, must accompany any state agency’s request to acquire real property, construct a new facility, expand the building area of an existing facility, or rehabilitate an existing facility.
Amends GS 143C-8-5 to require an estimate of maintenance and operating costs, including personnel for the project, covering the first five years of operation to be included in the required capital improvement plan for real property acquisition, new construction, and facility rehabilitation. Removes this requirement from GS 143C-8-6(e). Creates new subsection (f) in GS 143C-8-6 that requires the Director of the Budget to ensure that all recommendations in the Recommended State Budget for repairs and renovations to existing facilities, real property acquisition, new construction, or rehabilitation of existing facilities include an estimate of maintenance and operating costs for the project covering the first five years of operation, or the previous five years if there is no increase, and a recommended source of funding for those operating costs.
Part III requires a preliminary six-year capital improvement plan:
Requires the Director of the Budget to prepare and transmit a preliminary six-year capital improvement plan to the General Assembly no later than October 1, 2016, that complies with the requirements of GS 143C-8-5 and GS 143C-8-3(b), as amended. Provides that this preliminary six-year capital improvement plan is to be prepared in addition to any other six-year capital improvement plan required by GS 143C-8-5.
Part IV requires more oversight of capital improvement needs criteria:
Amends GS 143C-8-3 to establish a new subsection (b) to require the Office of State Budget and Management (Office) to include in each six-year capital improvement plan submitted to the General Assembly as required under GS 143C-8-5 (1) the list of factors the Office developed to evaluate the need for capital improvement under GS 143C-8-3(a) and (2) the most recent results of applying those factors to capital funds requests from state agencies.
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