GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2013

S                                                                                                                                                     1

SENATE BILL 19

Short Title:        Bldg. Contracts/Local Business Participation.		(Public)
Sponsors:	Senators Bingham (Primary Sponsor);  Clark and Jenkins.
Referred to:	Commerce.

January 31, 2013

A BILL TO BE ENTITLED

AN ACT authorizing counties and cities to require bidders on public building contracts to demonstrate that they have made good faith efforts to recruit participation by local businesses in the contracts.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 8 of Chapter 143 of the General Statutes is amended by adding a new section to read as follows:

"§ 143-128.5.  Increase local business participation in public building projects.

(a) Each county and city in the State shall require bidders on a project bid under any of the methods authorized under G.S. 143-128(a1), including building projects done by a private entity on a facility to be leased or purchased by the county or city, to undertake the following good faith efforts to ensure that local businesses have a full and fair opportunity to participate in public building contracts:

(1) Contact local businesses that reasonably could have been expected to submit a quote, and that were known to the contractor or available on local government maintained lists at least 30 days before the bid or proposal date, and notify them of the nature and scope of the work to be performed.

(2) Make the construction plans, specifications, and requirements available for review by prospective local businesses or provide those documents to them at least 30 days before the bid or proposals are due.

(3) Negotiate in good faith with interested local businesses and do not reject them as unqualified without sound reasons based on their capabilities.

(b) Each bidder shall identify on its bid the local businesses that it will use on the project and shall attach to the bid an affidavit listing the good faith efforts it made pursuant to subsection (a) of this section and the total dollar value of the bid that will be performed by the local businesses, if any. The failure to attach an affidavit that demonstrates the bidder made the required good faith efforts is grounds for rejection of the bid. The provisions of this section apply to formal and informal bids.

(c) For purposes of this section, the following definitions apply:

(1) Bidder. - In addition to the traditional meaning, the term means first-tier subcontractor for construction manager at risk projects.

(2) Local business. - A business whose principal place of business is located in the affected county or city.

(3) Principal place of business. - The principal place from which the trade or business of the bidder is directed or managed.

(d) Counties and cities under this section shall award public building contracts without regard to race, religion, color, creed, national origin, sex, age, or handicapping condition. Nothing in this section shall be construed to require contractors or an awarding county or city to award contracts or subcontracts to local business contractors or local business subcontractors who do not submit the lowest responsible, responsive bid or bids.

(e) Notwithstanding G.S. 132-3 and G.S. 121-5, all public records created pursuant to this section shall be maintained by the county or city for a period of not less than three years from the date of the completion of the building project."

SECTION 2.  This act becomes effective July 1, 2013, and applies to the solicitation of bids for public building contracts by a county or city on or after that date.