Bill Summary for S 78 (2013-2014)

Summary date: 

May 8 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
Senate Bill 78 (Public) Filed Tuesday, February 12, 2013
Intro. by Hartsell.

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Bill summary

Senate committee substitute makes the following changes to the 1st edition.

Changes the long title.

Amends GS 114-8.3, providing that the Attorney General (AG) or designee is responsible for reviewing all proposed contracts for services that exceed $5 million (was, $1 million). Requires the AG to provide established procedures for the review of contracts pursuant to this section to provide guidelines to any attorney designated under GS 143-49(3a) who will review contracts in excess of $5 million. The AG is also required to advise and assist the Contract Management Section of the Division of Purchase and Contract, Department of Administration, in establishing procedures and guidelines for the review of contracts pursuant to GS 143-50.1. Makes conforming changes.

Enacts new GS 114-8.3(b1), directing the General Counsel of the Department of State Treasurer (Treasurer), or designee, to review all proposed investment and debt contracts, as defined in this section, or contracts entered into pursuant to the Treasurer's authority to contract for investment advisory services. The contracts are to be reviewed in order to confirm that they conform to specified statutory requirements. Exempts certain contracts from becoming voidable if not reviewed or signed as required by this subsection. Makes technical changes.

Deletes proposed GS 114-8.3(d).

Amends GS 143-49, providing that the AG can assign an attorney from the office of the AG, the Contract Management Section of the Division of Purchase and Contract, the Department of Administration, or other qualified counsel to assist in negotiation for the award of the contract. Provides that the Secretary of Administration (Secretary) is not required to notify the AG for appointment of a representative for contracts that are to be entered into by the constituent institutions of UNC, or for contracts to be entered into by the Department of the Treasurer, unless requested to do so by specified General Counsel. Requires contracts for services reviewed pursuant to this subdivision to include the signature of the AG or the designee. If no signature is obtained and the contract commences, the State has the right to terminate the contract, with the other parties entitled to receive the value of the services provided prior to the termination.

Enacts new GS 143-50.1, Division of Purchase and Contract; Contract Management Section, establishing the Contract Management Section (CMS) in the Division of Purchase and Contract, Department of Administration. Directs the CMS to review all proposed solicitations for supplies, materials, printing, equipment, or contractual services that exceed $1 million, unless reviewed by another agency that has been designated by statute. Provides that CMS will be responsible for (1) participating and assisting in the preparation of all proposed solicitations, reviewing them with the goal of obtaining the most favorable contract for the state; (2) interpreting proposed contract terms and advising the Secretary or designee of the potential liabilities to the state; and (3) ensuring contracts are in proper form, contain all clauses requested by law, legally enforceable, and require performance that will accomplish the intended purposes. Provides that the legal counsel of the CMS would also be subject to appointment by the AG for review of contracts for services in excess of $5 million. Sets out the duties and responsibilities of the CMS, including assisting other state agency legal staff, as requested, in matters related to contracting for goods and services. Directs the Department of Administration to adopt procedures for the record keeping of information provided by state agencies or received by the Secretary pursuant to GS 114-8.3(c).

Amends GS 143-52.1, Award recommendations; State Purchasing Officer action (was, Board of Awards), and GS 147-33.101, Award recommendations; State Chief Information Officer Action (was, Board of Awards review), transferring the authority to take action on contract award recommendations from the Board of Awards to the State Purchasing Officer or the State Chief Information Officer for contracts that exceed specified benchmarks. Requires the reporting of all contract awards that exceed $25,000 to be reported to specified committees by respective procurement officers.

Amends GS GS 116-13, GS 120-36.6, GS 143-52(a), and GS 143-59(b), making conforming changes.

Repeals GS 143-318.18(10), to remove reference to the Board of Awards.

Adds the Department of Transportation to entities who are to establish procedures to implement the act.

Amends GS 143-49, Powers and duties of Secretary, changing the implementation date for (1) the quality management system to January 1, 2014 (was, September 1, 2013), (2) the report date for compliance progress with this subdivision to June 1, 2013 (was, September 1, 2012), (3) the contract specialist career path designation to September 1, 2013 (was, April 1, 2013), and (4) the contract management and training certification program to July 1, 2014 (was, September 1, 2015).

Provides that Sections 1 through 3 of the act become effective October 1, 2013, and apply to contracts entered into on or after that date. The remainder of this act is effective when it becomes law.

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