LIMIT CONTRACTOR LIABILITY IN STATE CONTRACTS. (NEW)

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View NCGA Bill Details(link is external)2025-2026 Session
House Bill 740 (Public) Filed Wednesday, April 2, 2025
AN ACT TO ESTABLISH LIMITS OF CONTRACTOR LIABILITY UNDER CERTAIN STATE PROCUREMENT CONTRACTS.
Intro. by Johnson.
Status: Re-ref to the Com on Finance, if favorable, Rules, Calendar, and Operations of the House (House action) (Jun 18 2025)

SOG comments (1):

Long title change

Submitted by iveybyrd on

Previous title was AN ACT TO DIRECT AND FUND THE ISSUANCE OF A REQUEST FOR PROPOSALS FOR THE DEVELOPMENT AND CREATION OF A DISASTER FOCUSED CONSTITUENT ENGAGEMENT PORTAL AND TO ESTABLISH LIMITS OF CONTRACTOR LIABILITY UNDER CERTAIN STATE PROCUREMENT CONTRACTS.

Bill History:

H 740

Bill Summaries:

  • Bill H 740 (2025-2026)
    Summary date: Jun 17 2025 - View Summary

    House committee substitute to the 1st edition makes the following changes. Makes conforming changes to act’s titles.

    Removes provisions requiring the Department of Information Technology (DIT) to issue a request for proposals to build a disaster focused constituent portal.

    Changes the statutory reference pertaining to the new contractor liability in State contracts from GS 143-49.2 to GS 143-49.3. Authorizes the Secretary to impose a fee not to exceed $250 to review a contractor’s financial resources. Makes technical and clarifying changes.  

    Changes the effective date to October 1, 2025 (was, the act becomes law). Makes conforming changes to the effective date.

    Development, Land Use and Housing, Building and Construction, Government, Budget/Appropriations, Public Safety and Emergency Management, State Agencies
    APPROP, GS 143
  • Bill H 740 (2025-2026)
    Summary date: Apr 4 2025 - View Summary

    Part 1

    Requires the Department of Information Technology (Department) to issue a request for proposals for the creation of a disaster relief portal as title indicates that will provide updates and constituent services in response to natural disasters in the state. Requires the portal design to consolidate critical information and programs from all relevant state agency websites into a single, centralized portal.

    Appropriates $500,000 for 2025-26 from the General Fund to the Department to be used for purposes described in Part 1.

    Effective July 1, 2025.

    Part 2

    Enacts GS 143-49.2 requiring all contracts subject to Articles 3 and Article 8 of Chapter 143 to include a limitation on contractor’s liability to the state for damages arising from any cause whatsoever, unless otherwise provided. Mandates that the liability amount be determined based on the nature of the goods, services, or construction work covered by the contract. Provides a presumptive limitation of no more than two times the contract’s value. This limited liability specifically includes the contractor’s liability for damages, but is not limited to this. Amount of liability for damages may be raised to three times the contract’s value if the criteria listed are met. Requires the Secretary of Administration (Secretary) to reasonably determine that the contractor has sufficient financial resources to satisfy the agreed upon limitation of liability before entering a contract subject to Article 3 and Article 8 provisions. Provides a list of contractor actions this limited liability requirement does not apply to and clarifies this limitation does not apply to a contractor’s liability to a third party directly, nor does it impact rights and obligations related to contribution among joint tortfeasors. Includes reporting requirements for the Secretary to the Joint Legislative Commission on Governmental Operations and the Joint Legislative Oversight Committee on General Government.

    This part applies to contracts awarded, renewed, or amended on or after the date it becomes law.

    Development, Land Use and Housing, Building and Construction, Government, Budget/Appropriations, Public Safety and Emergency Management, State Agencies, Department of Information Technology
    APPROP, GS 143
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