Bill Summary for S 575 (2011-2012)

Summary date: 

Apr 12 2011

Bill Information:

View NCGA Bill Details2011-2012 Session
Senate Bill 575 (Public) Filed Tuesday, April 12, 2011
TO PROVIDE EFFICIENCY AND FLEXIBILITY FOR THE NORTH CAROLINA COMMUNITY COLLEGE SYSTEM AND THE UNIVERSITY OF NORTH CAROLINA.
Intro. by Stevens, Tillman.

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Bill summary

Amends GS 115D-9 to provide that despite the provisions of GS 143-341(3) (regarding the powers and duties of the Department of Administration with respect to architecture and engineering of state buildings or buildings located on state lands) the powers of the State Board of Community Colleges (State Board) regarding certain fee negotiations, contracts, and capital improvements apply to state-funded property developments (was, state-funded and non-state funded) of the North Carolina Community College System requiring the estimated expenditure of public money of $4 million or less (was, $1 million or less). Provides that if the State Board determines that the college has the expertise to manage a capital improvement project that is funded with non-state funds then the provisions of GS 143-341(3) do not apply to the project unless the assistance of the Office of State Construction is requested.
Amends GS 115D-15 to permit the transfer of personal property titled to the State Board consistent with GS 115D-14 and 115D-58.5 to another community college at no cost and without the approval of the State Board or the Department of Administration, Division of Surplus Property. Effective July 1, 2011.
Amends GS 115D-58.6 (Investment of idle cash) to provide community colleges with additional flexibility with regard to investments. Provides that a community college is to manage investments subject to whatever restrictions and directions that are imposed by the board of trustees. Directs the board of trustees for an institution to appoint an Investment Committee. Specifies the qualifications of the members of the Investment Committee and specifies guidelines to which the board of trustees must adhere in discharging its duties with respect to the management and investment of college funds. Makes a conforming change to GS 147-69.2. Effective July 1, 2011.
Amends GS 143-135 to provide that the University of North Carolina (UNC) and its constituent institutions and the North Carolina Community College System may use its employees to complete construction projects on which the total cost of the project does not exceed $500,000 (was, $200,000) or the total cost of the labor on the project does not exceed $300,000 (was, $100,000).
Amends GS 143C-8-12 to allow the UNC Board of Governors to approve the planning, authorization, and funding of capital projects that are entirely funded with non-General Fund money. Requires the Board of Governors to report any expenditure made under this section to the Office of State Budget and Management (OSBM) and to the Joint Legislative Commission on Governmental Operations (Commission).
Amends GS 143C-4-3 to authorize the Board of Governors to allocate or reallocate funds in the Reserve for Repairs and Renovations for repairs and renovations projects providing that specified conditions are met. Requires the Board to report its allocation or reallocation of funds to the Commission within 60 days of any allocation or reallocation under this provision. Effective July 1, 2011.
Amends GS 143C-3-3 to waive the requirement that a certification of project feasibility accompany a request for repairs and renovation funds or a capital funds request in cases where advance planning for a project of UNC has not been completed. Makes a conforming change to GS 143-341(3)b1. Effective July 1, 2011.
Amends GS 116-13.1 to permit chancellors of constituent institutions of UNC to approve certain repair and maintenance projects and to fund those projects with available operating funds in an amount not to be more than $1 million per project.
Enacts new GS 143-64.17L to provide criteria under which a Board of Governors may authorize energy conversation measures at constituent intuitions. Provides the scope of the Board of Governor’s authority and permits the Board to authorize the implementation of multiple energy conservation measures simultaneously as part of a single project.
Enacts new GS 143-64.17M to require that an energy savings analysis be performed before implementing an energy conservation measure under proposed GS 143-64.17L. Also requires a post-implementation analysis to be completed by a third party.
Amends GS 116-30.3B(b) to clarify that appropriations to the Board of Governors on the behalf of a constituent institution are not to be reduced as a result of the energy savings realized by the institution.
Amends subsection (b) of GS 143-64.17F to provide that the rules adopted under this subsection do not apply to energy conservation measures implemented under proposed GS 143-6417L. Amends GS 143-64.17H to require that a state governmental unit that enters into a guaranteed energy savings contract or implements an energy conservation measure under proposed GS 143-64.17L must report to the State Energy Office of the Department of Commerce either the contract and its terms or the implementation of the measure within 30 days of the date of the contract or of the implementation of the measure (was, required reporting of the contract and its terms). Makes conforming changes to GS 142-63, 142-64(a), and 116D-22(3).
Amends GS 116-31.10(b) to provide that each UNC institution with an expenditure benchmark that is more than $250,000 is to comply with this subsection for any purchase greater than the institution’s benchmark as set by the Board of Governors. Effective October 1, 2011.
Amends GS 143-53(d) to provide that UNC may solicit bids for service contracts and commodity contracts with a term of 10 years or less without the prior approval of the State Purchasing officer.
Amends GS 143-60 to allow UNC to assume responsibility for the quality acceptance inspection process. Effective October 1, 2011.
Amends GS 133-3 to permit constituent institutions of UNC to establish brand-name specifications for building control systems, fire alarm systems, building security systems, elevators, and critical utility systems providing that certain perquisite requirements are met.
Enacts new GS 143-64.7 to permit a constituent institution of UNC to sell or transfer surplus personal property except for motor vehicles. Requires that all receipts from the transfers or sales for materials, supplies, or equipment that were acquired with, or supported by, appropriations from the General Fund, less the actual costs of the sale, be remitted to the State Treasurer and credited to the General Fun as nontax revenue.
Enacts new GS 143-64.06 to authorize North Carolina State University to sell or transfer timber without the involvement of the State Surplus Property Agency (Agency) and without having to pay any service charge or surcharge to the Agency.
Amends GS 143-341 to authorize UNC campuses to purchase motor vehicles for use by campus safety officers without the prior approval of the Department of Administration. Effective December 1, 2011.
Amends GS 116-36.1 to direct the Board of Governors to adopt uniform policies and procedures that apply to the deposit, investment, and administration (was, administration) of the trust funds for the UNC system institutions. Deletes requirement that the trust funds be deposited with the State Treasurer to hold in trust in the name of UNC and each institution and instead provides that the trust funds and investment earnings on those funds are available for expenditure by each institution without further authorization from the General Assembly. Provides that reports and information concerning UNC trust accounts are to be submitted to the Board of Governors (was, the Director of the Budget). Provides that the Board of Governors may authorize, via the President, the chancellors to deposit or invest each institution’s available trust fund cash balances and other investments as authorized by the Board of Governors without regard to any statute or rule of law relating to the investment of funds by fiduciaries. Makes a conforming change to GS 116-37(e). Amends GS 116-37.2 to modify definition of funds as used in reference to the regulation of University of North Carolina Hospitals at Chapel Hill funds to include moneys received by UNC Hospitals at Chapel Hill with “respect to borrowings for capital equipment or construction projects to further service it renders in either or both of its hospital or clinical operations.” Directs the Board of Directors of the University of North Carolina Health Care System to adopt uniform policies and procedures that apply to the deposit, investment, and administration (was, administration) of the funds of UNC Hospitals at Chapel Hill. Deletes requirement that the trust funds be deposited with the State Treasurer to hold in trust in the name of UNC Hospitals at Chapel Hill and instead provides that the trust funds and investment earnings on those funds are available for expenditure by UNC Hospitals at Chapel Hill without further authorization from the General Assembly. Provides that reports and information concerning UNC Hospitals at Chapel Hill fund accounts are to be submitted to the Board of Directors of the University of North Carolina Health Care System (was, the Director of the Budget). Provides that the Board of Directors of the University of North Carolina Health Care System may deposit or invest funds under this section exercising its sound discretion without regard to any statute or rule of law relating to the investment of funds by fiduciaries. Effective July 1, 2011.
Amends GS 116-11 to provide that all employees of the University of North Carolina are exempt from the State Personnel Act and subject to the direct authority of the Board of Governors. Directs the Board of Governors to adopt policies concerning the terms and conditions of employment of UNC employees. Deletes language that limited the Board of Governor’s authority to specified categories of employees. Makes conforming changes to GS 116-14, 116-30.1, 116-30.4, 126-5(c1)(9), and 126-19. Effective January 1, 2012.
Amends Section 29.28(f) of SL 2005-276, as amended, to make the exemption of participants in the University of North Carolina Phased Retirement Program permanent (was, exemption ended as of the earlier of August 31, 2013 or 12 months after the Internal Revenue Service issued its final phased retirement regulations). Makes conforming changes to GS 135-1(20). Effective July 1, 2011.
Amends GS 135-1(20), to provide that retirement under the Teachers’ and State Employee’s Retirement System becomes effective in any month during which the member renders no service during the qualifying period immediately following the effective date of retirement. Amends GS 135-1 to define qualifying period as three months for members who retire with their last 12 months of service as employees of UNC or any constituent institution and return to service as employees of UNC or any constituent institution, and as six months for any other member. Makes a conforming change to GS 135-3(8)c. Effective July 1, 2011.
Amends GS 135-5.1(b)(5), clarifying that if any participant in the Optional Retirement Program with less than five years of total membership service (rather than less than five years coverage) under any combination of the Teachers’ and State Employees’ Retirement System, the Local Governmental Employees’ Retirement System, the Consolidated Judicial Retirement System, or the Optional Retirement Program leaves the employ of UNC and either retires or begins employment with an employer lacking a retirement program with the same underwriter, then the participant’s interest in the Optional Retirement Program attributable to contributions of UNC will be forfeited and either refunded to UNC and eventually credited to the pension accumulation fund, or be paid directly to the Retirement System and credited to the pension accumulation fund. Effective July 1, 2011.
Enacts new subdivision (5) to GS 135-5.1(a) to allow employees of the University of North Carolina Health Care System to participate in the Optional Retirement Program, subject to rules adopted by the UNC Board of Governors. Effective July 1, 2011.
Except as otherwise indicated, effective when it becomes law.

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