GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                    1

HOUSE BILL 596

 

 

Short Title:        Transfer Surplus Prop. to Retirement System.

(Public)

Sponsors:

Representatives Hastings, Stam, and Crawford (Primary Sponsors).

For a complete list of Sponsors, see Bill Information on the NCGA Web Site.

Referred to:

Finance.

April 5, 2011

A BILL TO BE ENTITLED

AN ACT to facilitate the identification of surplus state-owned real property; to require that the ownership of that property be transferred to the Teachers' and state employees' retirement system; to require the state treasurer to manage that property for the benefit of the state retirement system; and to make conforming changes to the general statutes.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 143-341(4) is amended by adding a new sub-subdivision to read:

"§ 143-341.  Powers and duties of Department.

The Department of Administration has the following powers and duties:

…

(4)        Real Property Control:

…

e1.       To identify and dispose of surplus State-owned real property in accordance with Article 19 of Chapter 146 of the General Statutes."

SECTION 2.  Chapter 146 of the General Statutes is amended by adding a new Article to read:

"Article 19.

"Surplus State-Owned Real Property.

"§ 146-90.  Definitions.

The following definitions apply in this Article:

(1)        Department. - The Department of Administration.

(2)        Retirement System. - The Teachers' and State Employees' Retirement System of North Carolina.

(3)        Surplus State-owned real property. - Real property, title to which is vested in the State, that is unused or underused and no longer needed for State purposes.

(4)        Transfer date. - The date on which transfer of surplus State-owned real property occurs under G.S. 146-94.

(5)        Transferred property. - Property transferred to the Retirement System pursuant to G.S. 146-94.

"§ 146-91.  Identification of surplus State-owned real property.

(a)        Review of Real Property Use. - The Department shall continuously review the current uses of State-owned real property and determine whether any of that property is  surplus State-owned real property. For every piece of State-owned real property with an appraised value of at least twenty-five thousand dollars ($25,000), the Department shall conduct the review required by this subsection at least every two years.

(b)        Factors to Be Considered. - In determining whether or not property is surplus State-owned real property, the Department shall consider at least the following factors:

(1)        Whether the property is being used to full capacity.

(2)        Whether the property is required for the programs of the entities that use it or to which it is allocated.

(3)        Current and reasonably anticipated future needs of State agencies that may be able to use the property.

(4)        The availability of suitable alternative property for State use.

(5)        Environmental factors, including conservation concerns. However, the significance attached to environmental factors shall take into account the availability and suitability of conservation agreements, as that term is defined in G.S. 121-35.

(6)        The need to preserve any historic structures on the property. However, the significance attached to this concern shall take into account the availability and suitability of preservation agreements, as that term is defined in G.S. 121-35.

(7)        The terms of the provisions of any trust or other instrument of title under which title to the property was acquired.

(8)        Land uses adjoining the property.

(9)        Fair market value of the property.

(c)        Use of Quantitative Data Required. - A review required by this section shall not be based solely on qualitative or categorical information about property use but shall also include quantitative data about property use.

"§ 146-92.  Report of finding that property is surplus required.

If the Department determines that a particular piece of real property is surplus State-owned real property pursuant to this Article, it shall report that determination in writing to the Joint Legislative Commission on Governmental Operations, the chairs of the House of Representatives and Senate Appropriations Committees, the Fiscal Research Division of the General Assembly, and the State Treasurer. The report shall include a statement that the property will be disposed of in accordance with the provisions of this Article.

"§ 146-93.  Transfer date.

(a)        Transfer Date. - The transfer date for a particular piece of surplus State-owned real property shall be the earlier of the thirty-first legislative day or the day of adjournment of the next regular session of the General Assembly that begins at least 25 days after the date the Department determined real property to be surplus State-owned real property, unless a different date applies under this section. If a bill that specifically disapproves the transfer pursuant to G.S. 146-94 is introduced in either house of the General Assembly before the thirty-first legislative day of that session, the transfer date shall be the earlier of either the day an unfavorable final action is taken on the bill or the day that session of the General Assembly adjourns without ratifying a bill that specifically disapproves of the transfer.

(b)        Effect of Bill Disapproving Transfer. - If the transfer of surplus State-owned real property pursuant to G.S. 146-94 is disapproved by a bill enacted into law, then no transfer  under this Article shall proceed.

"§ 146-94.  Transfer of surplus property to Teachers' and State Employees' Retirement System.

(a)        Transfer of Ownership. - Notwithstanding any other provision of law, title to surplus State-owned real property is transferred to the Retirement System effective on the property's transfer date. The conveyance shall be made in accordance with Article 16 of this Chapter except that approval of the conveyance by the Governor and Council of State shall not be required. The Attorney General shall provide the same assistance with respect to transfers under this subsection that the Attorney General does for other property dispositions under this Subchapter.

(b)        Intent of General Assembly. - Except to the extent required by the provisions of any trust or other instrument of title under which title to the property was acquired, it is the intent of the General Assembly that transferred property become an asset of the Retirement System within the meaning of Section 6 of Article V of the North Carolina Constitution and that any net proceeds derived from the sale, lease, or other disposition of that property remain funds of the retirement system.   

"§ 146-95.  Management of surplus property by State Treasurer.

Transferred property shall be managed by the State Treasurer in accordance with G.S. 147-86.3. Notwithstanding any other provision of law, transferred property shall not be disposed of except in response to a request of the State Treasurer made pursuant to that section.

"§ 146-96.  Disposition of transferred property.

(a)        Department to Proceed With Disposition. - When the Department receives a request from the State Treasurer to sell, lease, or rent transferred property in accordance with G.S. 147-86.3, the Department shall proceed with its sale, lease, or rental in the same manner in which it would proceed with any other sale, lease, or rental of State-owned real property, except that:

(1)        It shall not make an independent determination of whether the disposition is in the best interest of the State.

(2)        No disposition shall proceed unless the final terms of the disposition are first approved by the State Treasurer.

(3)        Each conveyance may be signed by the State Treasurer or other appropriate Retirement System official in the name of the Retirement System.

(b)        Applicability of Other Restrictions. - Except as provided in this section, a  disposition of transferred property shall be subject to the same restrictions and requirements as the sale of any other State-owned real property.

"§ 146-97.  Application of net proceeds.

(a)        Use of Proceeds. - Notwithstanding G.S. 146-30, the net proceeds of any disposition made in accordance with G.S. 146-96 are hereby appropriated and shall be handled in the following priority order:

(1)        In accordance with the provisions of any trust or other instrument of title under which title to the property was acquired.

(2)        The remainder of the net proceeds shall be remitted to the State Treasurer to be deposited in the Retirement System.

(b)        Definition of Net Proceeds. - For purposes of this section, the term 'net proceeds' means the gross amount received from a disposition of transferred property less any expenses incurred incident to the disposition, subject to regulations adopted by the Governor and approved by the Council of State.

"§ 146-98.  State agencies must cooperate with Department.

State agencies shall furnish the Department with any information requested by the Department while carrying out its duties under this Article. This information shall be accurate, complete, and timely.

"§ 146-99. Quarterly reporting required.

The Department shall report in writing on a quarterly basis to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the General Assembly on its activities pursuant to this Article. This report shall include at least the following information:

(1)        The number of reviews conducted pursuant to G.S. 146-91 during the previous three months as well as supporting data that provide meaningful context to that figure.

(2)        Information about property identified as surplus and reported pursuant to G.S. 146-92, property transferred pursuant to G.S. 146-94, property disposed of pursuant to G.S. 146-96, and proceeds deposited with the State Treasurer pursuant to G.S. 146-97.

"§ 146-100.  Article not applicable to property subject to constitutional limitations.

Property may not be disposed of under this Article if either of the following is true:

(1)        The State or federal constitutions prohibit the property from being disposed of in the manner provided for by this Article.

(2)        The State or federal constitutions prohibit the net proceeds of a disposition of property under this Article from being used in the manner required by this Article."

SECTION 3.  Article 6 of Chapter 147 of the General Statutes is amended by adding a new section to read:

"§ 147-86.3.  Determination of best use of surplus property on behalf of the Teachers' and State Employees' Retirement System.

(a)        State Treasurer to Determine Best Use of Transferred Property. - Whenever property is transferred pursuant to G.S. 146-94, the State Treasurer shall consider the possibility of selling, leasing, or renting the transferred property and shall determine which if any disposition is in the best interest of the Teachers' and State Employees' Retirement System. The State Treasurer may also determine that it is not in the best interest of the Retirement System to dispose of the property at that time but in that case shall periodically reconsider the matter. For purposes of this subsection, a  disposition is in the best interest of the Teachers' and State Employees' Retirement System if it is reasonably anticipated that it will provide more net proceeds than other options being contemporaneously considered.

(b)        Initiation of Disposition of Transferred Property. - Whenever the State Treasurer determines that it is desirable to dispose of transferred property, the State Treasurer shall request that the Department of Administration dispose of the property in accordance with the terms of the State Treasurer's request. A request under this subsection shall include the manner of disposition requested and any related requests as to the form of the disposition. A request for a disposition or terms of a disposition that if followed would violate any law is void.

(c)        Definition of Transferred Property. - The term 'transferred property' means property transferred to the Retirement System pursuant to G.S. 146-94.

(d)        Cooperation by Other Agencies. - State agencies shall furnish the State Treasurer with any information requested by the State Treasurer while implementing this section."

SECTION 4.  This act becomes effective on October 1, 2011.