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North Carolina Senate Bill S465

North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S465 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-S 1
4-SENATE BILL 465
3+S D
4+SENATE BILL DRS15186-MQ-15
5+
56
67
78 Short Title: Agency Vacant Property. (Public)
89 Sponsors: Senators Burgin and Chaudhuri (Primary Sponsors).
9-Referred to: Rules and Operations of the Senate
10-March 25, 2025
11-*S465 -v-1*
10+Referred to:
11+
12+*DRS15186 -MQ-15*
1213 A BILL TO BE ENTITLED 1
1314 AN ACT TO REQUIRE THE DEPARTMENT OF ADMINISTRATION TO ASSESS, 2
1415 CATALOG, REPORT, AND DISPOSE OF CERTAIN VACANT STATE PROPERTY . 3
1516 The General Assembly of North Carolina enacts: 4
1617 SECTION 1. G.S. 143-341 reads as rewritten: 5
1718 "§ 143-341. Powers and duties of Department. 6
1819 The Department of Administration has the following powers and duties: 7
1920 (1) Repealed by Session Laws 1979, 2nd Session, c. 1137, s. 38. 8
2021 (2) Purchase and Contract: 9
2122 a. To exercise those powers and perform those duties which were, at the 10
2223 time of the ratification of this Article, conferred by statute upon the 11
2324 former Division of Purchase and Contract. 12
2425 … 13
2526 (4) Real Property Control: 14
2627 a. To prepare and keep current a complete and accurate inventory of all 15
2728 land owned or leased by the State or by any State agency. This 16
2829 inventory shall show the location, including the latitude and longitude 17
2930 of the center of the property, acreage, description, source of title and 18
3031 current use of all land (including swamplands or marshlands) owned 19
3132 by the State or by any State agency, and the agency to which each tract 20
3233 is currently allocated. Surveys may be made where necessary to obtain 21
3334 information for the purposes of this inventory. Accurate plats or maps 22
3435 of all such land may be prepared, or copies obtained where such maps 23
3536 or plats are available. 24
3637 b. To prepare and keep current a complete and accurate database of all 25
3738 buildings owned or leased (in whole or in part) by the State or by any 26
3839 State agency. This database shall serve as the State inventory and shall 27
3940 include all of the following information and floor plans of every such 28
4041 building shall be prepared or copies obtained where such floor plans 29
4142 are available, where needed for use in the allocation of space therein: 30
4243 1. The building's location, including the latitude and longitude of 31
4344 the center of the building. 32
4445 2. A description of the operations supported by the building. 33
4546 3. The agency or agencies that occupy the building.The current 34
4647 occupant of the building or, if the building is vacant, the current 35
47-period of vacancy. 36 General Assembly Of North Carolina Session 2025
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48+period of vacancy. 36
49+FILED SENATE
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51+S.B. 465
52+PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
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4954 4. Ownership information for the building. 1
5055 5. The size of the building in terms of both gross and usable 2
5156 square feet. 3
5257 6. A description of the building. 4
5358 7. The building's condition assessment, including the estimated 5
5459 cost to make needed repairs and renovations as well as the date 6
5560 that the last condition assessment was completed. 7
5661 8. The building's annual operating costs. 8
5762 9. The building's annual maintenance costs. 9
5863 9a. The total potential liability to the State for the building and the 10
5964 land where the building is situated. 11
6065 10. The number of usable workspaces contained in the building. 12
6166 11. The number of full-time equivalent positions assigned to the 13
6267 building by each agency occupant. 14
6368 12. The amount of the building that is utilized, measured in 15
6469 accordance with the procedures developed pursuant to 16
6570 G.S. 143-341.2(a)(3). 17
6671 13. Maintenance record, including replacement and maintenance 18
6772 schedules for all major mechanical systems. 19
6873 14. Parking and employee facilities. 20
6974 15. Any other information deemed relevant by the Department of 21
7075 Administration. 22
7176 …." 23
7277 SECTION 2. G.S. 143-341.2 reads as rewritten: 24
7378 "§ 143-341.2. Proactive management of State-owned and State-leased real property 25
7479 portfolio. 26
7580 (a) Duties of the Department of Administration. – The Department of Administration 27
7681 shall have the following powers and duties: 28
7782 (1) Development of comprehensive State facilities plan. – No later than April 1, 29
7883 2023, and every five years thereafter, the Department of Administration shall 30
7984 develop and implement a plan to comprehensively manage, acquire, and 31
8085 dispose of the facilities and spaces required to fully support State government 32
8186 operations. The plan shall do all of the following: 33
8287 a. Identify the type, quantity, and location of facilities and spaces 34
8388 required to fully support State government operations. 35
8489 b. Include an in-depth analysis of existing State-owned facilities' 36
8590 locations, capability, utilization, occupancy status, and condition. 37
8691 c. Establish strategic priorities and objectives that allow the Department 38
8792 of Administration to manage the performance of the State's portfolio 39
8893 of real property in a way that maximizes the utilization of State-owned 40
8994 facilities and minimizes operating and maintenance costs. 41
9095 d. Take into consideration the information provided to the Department in 42
9196 five-year real property management plans submitted by State agencies 43
9297 pursuant to subdivision (b)(4) of this section. 44
9398 e. Provide a mechanism for allocating available facilities or space to 45
9499 State agencies that need it in a manner that reduces the need to acquire 46
95100 new space through purchase, lease, or other means. 47
96101 f. Provide recommendations for disposing of existing State property and 48
97102 facilities, consolidating operations among existing facilities, and 49
98103 relocating State agencies from leased facilities to State-owned 50
99104 facilities. 51 General Assembly Of North Carolina Session 2025
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101106 g. Describe all changes made to space planning standards developed and 1
102107 distributed as provided in subdivision (4) of this subsection. 2
103108 h. Identify potential facilities eligible for surplus disposal under 3
104109 G.S. 143-341.3. 4
105110 (2) Development of performance management system. – The Department of 5
106111 Administration shall establish a performance management system to measure 6
107112 the State's achievement of the priorities and objectives set forth in plans 7
108113 developed pursuant to subdivision (1) of this section. The system shall set 8
109114 measurable goals and deadlines and shall be designed to focus on optimization 9
110115 and efficiency of the State's portfolio of real property. The system shall be 10
111116 used to report the information required by sub-sub-subdivision (7)c.1. of this 11
112117 section. 12
113118 (3) Development of utilization measures. – The Department of Administration 13
114119 shall develop and distribute to State agencies procedures to be used to measure 14
115120 the utilization of State-owned and State-leased real property. The procedures 15
116121 developed pursuant to this subdivision shall be all of the following: 16
117122 a. Based on the percentage of usable square feet in a facility that is used 17
118123 for State agency functions or for storage, or on other trade industry 18
119124 standards of utilization measurement. 19
120125 b. Adjusted as appropriate for each facility type. 20
121126 c. Designed to yield an easily understandable index or ratio of facility 21
122127 utilization. 22
123128 d. Developed in consultation with State agencies. 23
124129 (4) Development and enforcement of space planning standards. – The Department 24
125130 of Administration shall develop and distribute to State agencies space 25
126131 planning standards to be used to determine workspace size and to govern the 26
127132 use of shared space. The standards developed pursuant to this subdivision 27
128133 shall be based on the Federal GSA's Office of Real Property Management 28
129134 Performance Measurement Division Workspace Utilization and Allocation 29
130135 Benchmark report unless the Department identifies another efficient industry 30
131136 standard upon which to base the space planning standards developed pursuant 31
132137 to this subdivision. The Department shall: 32
133138 a. Annually perform audits of a portion of State agencies to determine 33
134139 each agency's adherence to the space planning standards developed 34
135140 pursuant to this subdivision and shall send formal letters of 35
136141 admonishment to any agency that fails to justify, in the sole discretion 36
137142 of the Department, any deviation from those standards. 37
138143 b. Update the space planning standards developed pursuant to this 38
139144 subdivision at least once every five years and distribute those changes 39
140145 to State agencies. 40
141146 (5) Updating of real property inventories. – The Department of Administration 41
142147 shall do all of the following to ensure that the information contained in the 42
143148 inventories maintained pursuant to G.S. 143-341(4) is kept current: 43
144149 a. Immediately incorporate information received from State agencies 44
145150 pursuant to subdivision (b)(1) of this section into the inventories. 45
146151 b. Immediately notify State agencies when the incorporation of 46
147152 information into the inventories required by sub-subdivision a. of this 47
148153 subdivision is complete. 48
149154 (6) Development of surplus property identification and disposal system. – The 49
150155 Department of Administration shall establish a surplus real property disposal 50
151156 system that limits the duration that unneeded property is retained by the State. 51 General Assembly Of North Carolina Session 2025
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153158 As part of the system, the Department shall adopt rules defining surplus 1
154159 State-owned real property and establishing a system for continuously 2
155160 identifying and disposing of that property, subject to the approvals required 3
156161 by Chapter 146 of the General Statutes, which shall take into consideration all 4
157162 of the following: 5
158163 a. The value each facility or parcel of land brings to the performance of 6
159164 the mission of the State or State agency and the fulfillment of its goals 7
160165 and objectives. 8
161166 b. A general measure of the facility's condition calculated as a ratio of 9
162167 repair needs to replacement value. 10
163168 c. The degree to which the property is utilized, measured in accordance 11
164169 with the procedures developed pursuant to subdivision (3) of this 12
165170 subsection. 13
166171 d. The extent to which the property meets the purpose for which it was 14
167172 intended. 15
168173 e. The extent to which the State or State agency is likely to need to 16
169174 continue to provide the service or function currently provided at the 17
170175 property. 18
171176 f. Consideration of the best and most cost-effective manner in which 19
172177 these future needs can be met. 20
173178 (7) Reporting. – The Department of Administration shall make the following 21
174179 reports: 22
175180 a. No later than April 1, 2023, and every five years thereafter, the 23
176181 Department shall report the following to the Joint Legislative 24
177182 Commission on Governmental Operations and Joint Legislative 25
178183 Oversight Committee on Capital Improvements, Joint Legislative 26
179184 Oversight Committee on General Government, and Fiscal Research 27
180185 Division: 28
181186 1. The plan developed pursuant to subdivision (1) of this 29
182187 subsection. 30
183188 2. A summary of the performance measurement procedures 31
184189 developed pursuant to subdivision (2) of this subsection. 32
185190 b. If any State agency fails to submit the information required by 33
186191 subdivision (b)(1) of this section, the Department shall report the 34
187192 failure to the chairs of the Joint Legislative Commission on 35
188193 Governmental Operations, the chairs of the Joint Legislative Oversight 36
189194 Committee on Capital Improvements, and the chairs of the Joint 37
190195 Legislative Oversight Committee on General Government within 30 38
191196 days. 39
192197 c. No later than April 1, 2024, and each year thereafter, the Department 40
193198 shall report to the Joint Legislative Commission on Governmental 41
194199 Operations, Joint Legislative Oversight Committee on Capital 42
195200 Improvements, Joint Legislative Oversight Committee on General 43
196201 Government, and Fiscal Research Division on the State's portfolio of 44
197202 real property. This report shall include at least the following 45
198203 information: 46
199204 1. The status of achieving the goals and objectives set forth in the 47
200205 most recent plan developed pursuant to subdivision (1) of this 48
201206 section. 49 General Assembly Of North Carolina Session 2025
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203208 2. Trends in the inventory of leased and owned buildings and real 1
204209 property, including changes in value, square footage, and 2
205210 operation and maintenance costs. 3
206211 3. Trends in the inventory of State-owned land, including 4
207212 changes in acreage and value. 5
208213 4. Allocation of leased and owned space by facility type, by 6
209214 agency, and by county. 7
210215 5. Benchmarks for comparable private sector leases across the 8
211216 regions of the State for both rural and urban locations, as 9
212217 appropriate. 10
213218 6. An analysis of utilization targets and a list of owned and leased 11
214219 real property identified as unused or underutilized. 12
215220 7. A list of the following information for the period beginning 13
216221 after submission of the most recent report pursuant to this 14
217222 sub-subdivision: 15
218223 I. State-owned properties identified as unused or 16
219224 underutilized. 17
220225 II. State-owned properties sold. 18
221226 III. State-owned properties in the process of being disposed 19
222227 of. 20
223228 IV. Properties reallocated between State agencies. 21
224229 8. A list of all audits performed that year pursuant to 22
225230 sub-subdivision a. of subdivision (4) of this subsection, a 23
226231 summary of the findings of each audit, and the agency's plans 24
227232 for addressing the findings of the audit. 25
228233 (b) Duties of Other State Agencies. – Each State agency shall have the following powers 26
229234 and duties: 27
230235 (1) Collection and reporting of information on property use. – No later than 28
231236 November 1, 2022, and each year thereafter, each State agency shall submit 29
232237 to the Department of Administration all of the information described in 30
233238 G.S. 143-341(4)b.1. through 15. for each building, facility, or space in any 31
234239 building or facility that the agency occupies. This shall be in addition to any 32
235240 reports required pursuant to G.S. 143-341(4)h. 33
236241 (2) Verification of information in real property inventories. – Within 60 days of 34
237242 receiving notice from the Department of Administration pursuant to 35
238243 sub-subdivision (a)(5)b. of this section, each State agency shall report to the 36
239244 Department one of the following, as applicable: 37
240245 a. That the information submitted to the Department of Administration 38
241246 pursuant to subdivision (1) of this subsection is accurately reflected in 39
242247 the real property inventories. 40
243248 b. A list of discrepancies between the information submitted to the 41
244249 Department of Administration pursuant to subdivision (1) of this 42
245250 subsection and the corresponding information in the real property 43
246251 inventories. 44
247252 (3) Auditor may audit submissions. – The State Auditor may audit submissions 45
248253 made to the Department of Administration pursuant to subdivision (1) of this 46
249254 subsection and may recover any costs incurred in performing such an audit 47
250255 from the State Land Fund, in accordance with G.S. 146-72. 48
251256 (4) Development of five-year property management plan. – No later than 49
252257 November 1, 2022, and every five years thereafter, each State agency shall 50
253258 develop a five-year real property management plan and shall submit the plan 51 General Assembly Of North Carolina Session 2025
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255260 to the Department of Administration for review. Each plan shall do all of the 1
256261 following: 2
257262 a. Identify the type, quantity, and location of facilities and spaces 3
258263 required to fully support agency operations. 4
259264 b. Include an in-depth analysis of existing facilities' locations, 5
260265 capabilities, utilization, and condition. 6
261266 c. Establish agency-specific strategic priorities and objectives for each 7
262267 asset under its control. 8
263268 (c) Exception for Property Not Subject to Department of Administration Oversight. – 9
264269 None of the requirements of this section shall apply to facilities that are not subject to the real 10
265270 property oversight of the Department of Administration under G.S. 143-341. A State agency that 11
266271 is entirely exempt from the real property oversight of the Department of Administration shall not 12
267272 be required to submit any information pursuant to subsection (b) of this section. A State agency 13
268273 that is partially exempt from the real property oversight of the Department of Administration 14
269274 shall submit information pursuant to subsection (b) of this section for those properties that are 15
270275 subject to the real property oversight of the Department of Administration." 16
271276 SECTION 3. Part 1 of Article 36 of Chapter 143 of the General Statutes is amended 17
272277 by adding a new section to read: 18
273278 "§ 143-341.3. Disposal of surplus real property. 19
274279 (a) Surplus Real Property Disposal. – The Department of Administration shall establish 20
275280 a surplus real property disposal system that limits the duration that unneeded or vacant property 21
276281 is retained by the State. As part of the system, the Department shall (i) adopt rules in accordance 22
277282 with this section, including defining surplus State-owned real property, and (ii) establish a system 23
278283 for continuously identifying and disposing of that property, subject to the approvals required 24
279284 under Chapter 146 of the General Statutes, which shall take into consideration all of the 25
280285 following: 26
281286 (1) The value each facility or parcel of land brings to the performance of the 27
282287 mission of the State or State agency and the fulfillment of its goals and 28
283288 objectives. 29
284289 (2) A general measure of the facility's condition calculated as a ratio of repair 30
285290 needs to replacement value. 31
286291 (3) The degree to which the property is utilized, measured in accordance with the 32
287292 procedures developed pursuant to G.S. 143-341.2(a)(3). 33
288293 (4) The extent to which the property meets the purpose for which it was intended. 34
289294 (5) The extent to which the State or State agency is likely to need to continue to 35
290295 provide the service or function currently provided at the property. 36
291296 (6) Consideration of the best and most cost-effective manner in which these future 37
292297 needs can be met. 38
293298 (7) Whether the property has been vacant for one year or longer. 39
294299 (8) An assessment of private or public interest in the property. 40
295300 (b) Method for Disposal. – For properties identified as surplus pursuant to this section, 41
296301 the Department of Administration shall, subject to the approvals required under Chapter 146 of 42
297302 the General Statutes, dispose of the surplus real property by sale. If the Department of 43
298303 Administration is unable to dispose of the real property by sale for a period of six months, the 44
299304 Department shall dispose of the property by auction or by transfer of title to a city or county in 45
300305 this State, provided that the city or county presents evidence satisfactory to the Department of an 46
301306 economic development use for the property. 47
302307 (c) Proceeds of Sale. – Notwithstanding G.S. 146-15, G.S. 146-30, or any other provision 48
303308 of law, the gross proceeds of the sale of surplus real property under this section shall be handled 49
304309 in accordance with the following priority: 50 General Assembly Of North Carolina Session 2025
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306311 (1) First, by subtracting any expenses incurred incident to the sale as may be 1
307312 allowed under rules and regulations adopted by the Governor and approved 2
308313 by the Council of State. 3
309314 (2) Second, in accordance with the provisions of any trust or other instrument of 4
310315 title whereby title to real property was acquired. 5
311316 (3) Third, as provided by any other act of the General Assembly. 6
312317 (4) Fourth, by depositing the remaining proceeds in accordance with the 7
313318 following: 8
314319 a. Fifty percent (50%) to the General Fund. 9
315320 b. Fifty percent (50%) to the Department of Administration to be used 10
316321 for repair and renovation projects as provided in G.S. 143C-8-13." 11
317322 SECTION 4. No later than three months after the effective date of this section, the 12
318323 Department of Administration shall submit a report to the Joint Legislative Oversight Committee 13
319324 on General Government and the Fiscal Research Division with the vacant building data required 14
320325 under G.S. 143-341, as enacted in this act. 15
321326 SECTION 5. This act becomes effective July 1, 2025. 16