GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999
SESSION LAW 1999-252
The General Assembly of North Carolina enacts:
Section 1. G.S. 146-25.1(a) reads as rewritten:
"(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 twelve thousand dollars ($12,000) twenty-five thousand dollars
($25,000) 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
place such advertisement in a newspaper of general circulation in the county
for proposals from prospective lessors of said land and shall make such other
distribution thereof as the Department directs. The advertisement shall be run
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."
Section 2. G.S. 146-29.1(c) reads as rewritten:
"(c) Real property owned
by the State or by any State agency may be sold, leased, or rented at less than
market value to a private, nonprofit corporation, association, organization or
society upon a determination by if the Department of
Administration that such determines both of the following:
(1) The transaction
is in consideration of public service rendered or to be rendered. rendered
by the nonprofit.
(2) The property will be used in connection with the nonprofit's tax-exempt purpose and not in connection with its unrelated trade or business, as defined in section 513 of the Code. For the purposes of this subdivision, the term "Code" has the same meaning as in G.S. 105-228.90.
The transaction shall be reported in detail at least 30 days
prior to the sale, lease, or rental to the Joint Legislative Commission on
Governmental Operations and the Fiscal Research Division of the Legislative
Services Office. The fact that any sale of property under this subsection
shall not be subject to a reversionary interest in the State shall be expressly
made known to the Joint Legislative Commission on Government Operations, and
the Governor and Council of State, prior to the transaction being
authorized. In the case of a private, nonprofit corporation,
association, organization, or society that engages in some for-profit activities,
the amount of the sale, lease, or rent shall be not less than the fair market
value of the property times the percentage of the total activities of the
corporation, association, organization, or society that are for profit."
Section 3. G.S. 146-32 reads as rewritten:
"§ 146-32. Exemptions as to leases, etc.
The Governor, acting with the approval of the Council of State, may adopt rules and regulations.
(1) Exempting from any or all of the requirements of this Subchapter such classes of lease, rental, easement, and right-of-way transactions as he deems advisable; and
(2) Authorizing any State agency to enter into and/or approve those classes of transactions exempted by such rules and regulations from the requirements of this Chapter.
(3) No rule or regulation adopted under this section may exempt from the provisions of G.S. 146-25.1 any class of lease or rental which has a duration of more than 21 days, unless the class of lease or rental:
a. Is a lease
or rental necessitated by a fire, flood, or other disaster that forces the
agency seeking the new lease or rental to cease use of real property; or
b. Is a lease
or rental necessitated because an agency had intended to move to new or
renovated real property that was not completed when planned, but a lease or
rental exempted under this subparagraph may not be for a period of more than
six months. months; or
c. Is a lease or rental which requires a unique location or a location that adjoins or is in close proximity to an existing rental location."
Section 4.(a) G.S. 116-37(i) reads as rewritten:
"(i) Property. -
Notwithstanding the provisions of Article 6 of Chapter 146 of the General
Statutes to the contrary, the The board of directors shall establish
rules and regulations to perform the functions otherwise prescribed for the
Department of Administration in for acquiring or disposing of any
interest in real property for the use of the University of North Carolina Health
Care System. These rules and regulations shall include provisions for
development of specifications, advertisement, and negotiations with owners for
acquisition by purchase, gift, lease, or rental, but not by condemnation or
exercise of eminent domain, on behalf of the University of North Carolina
Health Care System. This section does not authorize the board of
directors to encumber real property. The board of directors shall submit
all initial policies and regulations adopted pursuant to this subsection to the
State Property Office for review upon adoption by the board. Any
subsequent changes to these policies and regulations adopted by the board shall
be submitted to the State Property Office for review. Any comments by the
State Property Office shall be submitted to the Chief Executive Officer and to
the President of The University of North Carolina. After review by the
Attorney General as to form and after the consummation of any such acquisition,
the University of North Carolina Health Care System shall promptly file a
report concerning the acquisition or disposition with the Governor and Council
of State. Acquisitions and dispositions of any interest in real
property pursuant to this section shall not be subject to the provisions of
Article 36 of Chapter 143 of the General Statutes or the provisions of Chapter
146 of the General Statutes."
Section 4.(b) G.S. 116-40.6(d) reads as rewritten:
"(d) Property. -
Notwithstanding the provisions of Article 6 of Chapter 146 of the General
Statutes to the contrary, the The board of trustees shall establish
rules and regulations to perform the functions otherwise prescribed for the
Department of Administration in for acquiring or disposing of any
interest in real property for the use of the Medical Faculty Practice
Plan. These rules and regulations shall include provisions for
development of specifications, advertisement, and negotiations with owners for
acquisition by purchase, gift, lease, or rental, but not by condemnation or
exercise of eminent domain, on behalf of the Medical Faculty Practice
Plan. This section does not authorize the board of trustees to encumber
real property. Such rules and regulations shall be implemented by a
property office maintained by East Carolina University. The board of
trustees shall submit all initial rules and regulations adopted pursuant to
this subsection to the State Property Office for review upon adoption.
Any subsequent changes to these rules and regulations shall be submitted to the
State Property Office for review. Any comments by the State Property
Office shall be submitted to the Chancellor of East Carolina University and to
the President of The University of North Carolina. After review by the
Attorney General as to form and after the consummation of any such acquisition,
East Carolina University shall promptly file, on behalf of the Medical Faculty
Practice Plan, a report concerning the acquisition or disposition with the
Governor and Council of State. Acquisitions and dispositions of any interest
in real property pursuant to this section shall not be subject to the
provisions of Article 36 of Chapter 143 of the General Statutes or the
provisions of Chapter 146 of the General Statutes."
Section 5. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 23rd day of June, 1999.
s/ Dennis A. Wicker
President of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 9:25 a.m. this 2nd day of July, 1999