AN ACT to make various statutory changes related to the operations of the department of administration.

The General Assembly of North Carolina enacts:

DOA QUARTERLY ACTION REPORT

SECTION 1.(a)  G.S. 143‑341.2 reads as rewritten:

§ 143‑341.2.  Proactive management of State‑owned and State‑leased real property portfolio.

(a)        Duties of the Department of Administration. – The Department of Administration shall have the following powers and duties:

(1)        Development of comprehensive State facilities plan. – No later than April 1, 2023, and every five years thereafter, the Department of Administration shall develop and implement a plan to comprehensively manage, acquire, and dispose of the facilities and spaces required to fully support State government operations. The plan shall do all of the following:

a.         Identify the type, quantity, and location of facilities and spaces required to fully support State government operations.

b.         Include an in‑depth analysis of existing State‑owned facilities' locations, capability, utilization, and condition.

c.         Establish strategic priorities and objectives that allow the Department of Administration to manage the performance of the State's portfolio of real property in a way that maximizes the utilization of State‑owned facilities and minimizes operating and maintenance costs.

d.         Take into consideration the information provided to the Department in five‑year real property management plans submitted by State agencies pursuant to subdivision (b)(4) of this section.

e.         Provide a mechanism for allocating available facilities or space to State agencies that need it in a manner that reduces the need to acquire new space through purchase, lease, or other means.

f.          Provide recommendations for disposing of existing State property and facilities, consolidating operations among existing facilities, and relocating State agencies from leased facilities to State‑owned facilities.

g.         Describe all changes made to space planning standards developed and distributed as provided in subdivision (4) of this subsection.

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(d)       During the pendency and execution of the Department's comprehensive State facilities plan described in subdivision (a)(1) of this section, the Department shall identify facilities that are abandoned, condemned, flagged for surplus, or that otherwise require extraordinary maintenance, including any Departmental recommendations, and shall compile and submit a quarterly report to the Fiscal Research Division, the Joint Legislative Oversight Committee on Capital Improvements, and the Council of State.

SECTION 1.(b)  There is appropriated from the General Fund to the Department of Administration the sum of fifty thousand dollars ($50,000) in nonrecurring funds for the 2026‑2027 fiscal year to establish a reporting mechanism to cover the statewide inventory of property being assessed under this section.

SECTION 1.(c)  This section is effective when it becomes law. The initial quarterly report required under this section shall be submitted on or before October 1, 2026.

SURPLUS PROPERTY VALUE ALIGNMENT

SECTION 2.(a)  G.S. 20‑28.2(i) reads as rewritten:

(i)       Expedited Sale of Seized Motor Vehicles in Certain Cases. – In order to avoid additional liability for towing and storage costs pending resolution of the criminal proceedings of the defendant, the State Surplus Property Agency or county board of education may, after expiration of 90 days from the date of seizure, sell any motor vehicle having a fair market value of one thousand five hundred dollars ($1,500) or less. The State Surplus Property Agency or county board of education may also sell a motor vehicle, regardless of the fair market value, any time the outstanding towing and storage costs exceed eighty‑five percent (85%) of the fair market value of the vehicle, or with the consent of all the motor vehicle owners. Any sale conducted pursuant to this subsection shall be conducted in accordance with the provisions of G.S. 20‑28.5(a) or G.S. 20‑28.5(a1), as applicable, and the proceeds of the sale, after the payment of outstanding towing and storage costs or reimbursement of towing and storage costs paid by a person other than the defendant, shall be deposited with the clerk of superior court. If an order of forfeiture is entered by the court, the court shall order the proceeds held by the clerk to be disbursed as provided in G.S. 20‑28.5(b). If the court determines that the motor vehicle is not subject to forfeiture, the court shall order the proceeds held by the clerk to be disbursed first to pay the sale, towing, and storage costs, second to pay outstanding liens on the motor vehicle, and the balance to be paid to the motor vehicle owners.

SECTION 2.(b)  This section is effective when it becomes law.

E‑SIGNATURES ON PROPERTY TRANSACTIONS

SECTION 3.(a)  G.S. 143‑341(4) reads as rewritten:

§ 143‑341.  Powers and duties of Department.

The Department of Administration has the following powers and duties:

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(4)        Real Property Control:

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c.         To obtain and deposit with the Secretary of State the originals of all deeds and other conveyances of real property to the State or to any State agency, copies of all leases wherein the State or any State agency is lessor or lessee, and certified copies of wills, judgments, and other instruments whereby the State or any State agency has acquired title to real property. Where an original of a deed, lease, or other instrument cannot be found, but has been recorded in the registry of office of the clerk of superior court of any county, a certified copy of such deed, conveyance, or instrument shall be obtained and deposited with the Secretary of State.

d.         To acquire, whether by purchase, exercise of the power of eminent domain, lease, or rental, all land, buildings, and space in buildings for all State agencies, subject to the approval of the Governor and Council of State in each instance. The Governor, acting with the approval of the Council of State, may adopt rules (i) exempting from any or all of the requirements of this paragraph such classes of lease, rental, easement, and right‑of‑way transactions as he deems advisable; and (ii) authorizing any State agency to enter into and/or approve the classes of transactions thus exempted from the requirements of this paragraph; and (iii) delegating to any other State agency the authority to approve the severance of buildings and standing timber from State lands; upon such approval of severance, the buildings and timber so affected shall be treated, for the purposes of this Chapter, as personal property. Any contract entered into or any proceeding instituted contrary to the provisions of this paragraph is voidable in the discretion of the Governor and Council of State.

d1.       To require all State departments, institutions, and agencies to use State‑owned office space instead of negotiating or renegotiating leases for rental of office space. In investigating the availability of office space already owned by the State or by a State agency which might meet the requirements of the requesting agency, the Department of Administration shall review the utilization information maintained in the real property database pursuant to this subdivision. Any lease entered into contrary to the provisions of this paragraph is voidable in the discretion of the Governor and the Council of State.

The Department of Administration shall report to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division no later than May 1 of each year on leased office space.

d2.       To purchase or finance the purchase of buildings, utilities, structures, or other facilities or property developments, including streets and landscaping, the acquisition of land, equipment, machinery, and furnishings in connection therewith; additions, extensions, enlargements, renovations, and improvements to existing buildings, utilities, structures, or other facilities or property developments, including streets and landscaping; land or any interest in land; other infrastructure; furniture, fixtures, equipment, vehicles, machinery, and similar items; or any combination of the foregoing, through installment‑purchase, lease‑purchase, or other similar type installment financing agreements in the manner and to the extent provided in Article 9 of Chapter 142 of the General Statutes. Any contract entered into or any proceeding instituted contrary to the provisions of this paragraph is voidable in the discretion of the Council of State.

e.         To make all sales of real property (including marshlands or swamplands) owned by the State or by any State agency, with the approval of the Governor and Council of State in each instance. All conveyances in fee by the State shall be executed in accordance with the provisions of G.S. 146‑74 through 146‑78. Any conveyance of land made or contract to convey land entered into without the approval of the Governor and Council of State is voidable in the discretion of the Governor and Council of State. The proceeds of all sales of swamplands or marshlands shall be dealt with in the manner required by the Constitution and statutes.

f.          With the approval of the Governor and Council of State, to make all leases and rentals of land or buildings owned by the State or by any State agency, and to sublease land or buildings leased by the State or by any State agency from another owner, where such land or building owned or leased by the State or by any State agency is not needed for current use. The Governor, acting with the approval of the Council of State, may adopt rules (i) exempting from any or all of the requirements of this paragraph such classes of lease or rental transactions as he deems advisable; and (ii) authorizing any State agency to enter into and/or approve the classes of transactions thus exempted from the requirements of this paragraph; and (iii) delegating to any other State agency the authority to approve the severance of buildings and standing timber from State lands; upon such approval of severance, the buildings and timber so affected shall be treated, for the purposes of this Chapter, as personal property. Any lease or rental agreement entered into contrary to the provisions of this paragraph is voidable in the discretion of the Governor and Council of State.

f1.        To the extent practicable, to execute any documents, instruments, or other records necessary in accordance with the provisions of Article 40 of Chapter 66 of the General Statutes in connection with any purchase, sale, or lease of property.

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SECTION 3.(b)  This section is effective when it becomes law and applies to property transactions entered into on or after that date.

STATE PROPERTY NOTICES

SECTION 4.(a)  G.S. 146‑25.1 reads as rewritten:

§ 146‑25.1.  Proposals to be secured for leases.

(a)        If pursuant to G.S. 146‑25, the Department of Administration determines that it is in the best interest of the State to lease or rent land and the rental is estimated to exceed forty thousand dollars ($40,000) per year or the term will exceed three years, the Department shall require the State agency desiring to rent land to prepare and submit for its approval a set of specifications for its needs. Upon approval of specifications, the Department shall prepare a public advertisement. The State agency shall (i) may place such the public advertisement in a newspaper of general circulation in the county for proposals from prospective lessors of said land or (ii) may advertise through other electronic means and shall make such other distribution thereof as the Department directs. The advertisement shall be run or posted for at least five consecutive days, and shall provide that proposals shall be received for at least seven days from the date of the last advertisement in the State Property Office of the Department. The provisions of this section do not apply to property owned by governmental agencies and leased to other governmental agencies. For the purposes of this section, electronic means includes posting the advertisement on the Department's website or any other means deemed appropriate by the Department to provide adequate notice.

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SECTION 4.(b)  This section is effective when it becomes law and applies to advertisements run or posted on or after that date.

EFFECTIVE DATE

SECTION 5.  Except as otherwise provided, this act is effective when it becomes law.