GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 116

Short Title:  State to Buy Recycled Goods.	(Public)
─────────────────────────────────────── 
Sponsors: Senators Speed; Barker, Block, Cobb, Daniel, Guy, Hardin, Hunt of Moore, Martin of Guilford, Odom, Smith, Swain, Taft, Tally, and Ward.
─────────────────────────────────────── 
Referred to:  State Government.
─────────────────────────────────────── 

February 6, 1989

A BILL TO BE ENTITLED
AN ACT TO DECLARE THAT IT IS A POLICY OF THIS STATE TO PROMOTE THE USE OF PRODUCTS WITH RECYCLED CONTENT IN STATE PURCHASING, AND TO GIVE PREFERENCE TO THE PURCHASE OF PRODUCTS WITH RECYCLED CONTENT AND TO CONTRACTORS WHO USE PRODUCTS WITH RECYCLED CONTENT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 143-48 reads as rewritten:
"§ 143-48. State policy; cooperation in promoting the use of small, minority, physically handicapped and women contractors; purpose.
It is the policy of this State to encourage and promote the use of small, minority, physically handicapped and women contractors, and the use of products with recycled content, in State purchasing of goods and services. All State agencies, institutions and political subdivisions shall cooperate with the Department of Administration and all other State agencies, institutions and political subdivisions in efforts to encourage the use of small, minority, physically handicapped and women contractors, and the use of products with recycled content, in achieving the purpose of this Article, which is to provide for the effective and economical acquisition, management and disposition of goods and services by and through the Department of Administration.”
Sec. 2.  G.S. 143-49 reads as rewritten:
"§ 143-49. Powers and duties of Secretary.
The Secretary of Administration shall have power and authority, and it shall be his duty, subject to the provisions of this Article:
(1)	To canvass sources of supply, including the sources of the supply of products with recycled content, and to purchase or to contract for the purchase, lease and lease-purchase of all supplies, materials, equipment and other tangible personal property required by the State government, or any of its departments, institutions or agencies under competitive bidding or otherwise as hereinafter provided. 
(1a)	To adopt rules and regulations to implement G.S. 143-58.2.
(2)	To establish and enforce specifications which shall apply to all supplies, materials and equipment to be purchased or leased for the use of the State government or any of its departments, institutions or agencies.
(3)	To purchase or to contract for, by sealed, competitive bidding or other suitable means, all contractual services and needs of the State government, or any of its departments, institutions, or agencies; or to authorize any department, institution or agency to purchase or contract for such services.
When the award of any contract for contractual services exceeding a cost of one hundred thousand dollars ($100,000) requires negotiation with prospective contractors, the Secretary shall request and the Attorney General shall assign a representative of the office of the Attorney General to assist in negotiation for the award of the contract. It shall be the duty of such representative to assist and advise in obtaining the most favorable contract for the State, to evaluate all proposals available from prospective contractors for that purpose, to interpret proposed contract terms and to advise the Secretary or his representatives of the liabilities of the State and validity of the contract to be awarded. All contracts and drafts of such contracts shall be prepared by the office of the Attorney General and copies thereof shall be retained by such office for a period of three years following the termination of such contracts. The term ‘contractual services' as used in this subsection shall mean work performed by an independent contractor requiring specialized knowledge, experience, expertise or similar capabilities wherein the service rendered does not consist primarily of acquisition by this State of equipment or materials and the rental of equipment, materials and supplies. The term ‘negotiation' as used herein shall not be deemed to refer to contracts entered into or to be entered into as a result of a competitive bidding process.
(4)	To have general supervision of all storerooms and stores operated by the State government, or any of its departments, institutions or agencies; to provide for transfer or exchange to or between all State departments, institutions and agencies, or to sell all supplies, materials and equipment which are surplus, obsolete or unused; and to have supervision of inventories of all tangible personal property belonging to the State government, or any of its departments, institutions or agencies. All receipts from the transfer or sale of such surplus, obsolete or unused equipment of State departments, institutions and agencies which are supported by appropriations from the general fund, except where such receipts have been anticipated for, or budgeted against the cost of replacements, shall be placed by the Secretary in an  equipment reserve fund from which expenditures may be made only with prior approval of the Director of the Budget. The duties imposed by this subdivision shall not relieve any department, institution or agency of the State government from accountability for equipment, materials, supplies and tangible personal property under its control. Prior to taking any action under this subdivision concerning expenditures from the equipment reserve fund, the Secretary may consult with the Advisory Budget Commission.
(5)	To make provision for or to contract for all State printing,  including all printing, binding, paper stock and supplies or materials in connection with the same.
(6)	To make available to nonprofit corporations operating charitable hospitals, to local nonprofit community sheltered workshops or centers that meet standards established by the Division of Vocational Rehabilitation of the Department of Human Resources, and to counties, cities, towns, governmental entities and other subdivisions of the State and public agencies thereof in the expenditure of public funds, the services of the Department of Administration in the purchase of materials, supplies and equipment under such rules, regulations and procedures as the Secretary of Administration may adopt. In adopting rules and regulations any or all provisions of this Article may be made applicable to such purchases and contracts made through the Department of Administration, and in addition the rules and regulations shall contain a requirement that payment for all such purchases be made in accordance with the terms of the contract. Prior to adopting rules and regulations under this subdivision, the Secretary of Administration may consult with the Advisory Budget Commission."
Sec. 3.  Article 3 of Chapter 143 is amended by adding a section to read:
"§ 143-58.2.  Preference given to the purchase of products with recycled content.
(a)	The Secretary of Administration shall review and modify all bid and product specifications so that the specifications do not discriminate against products with recycled content.  The Secretary of Administration shall give preference:
(1)	In the purchase of products, to products with recycled content, and
(2)	In contracting for services, to contractors who use products with recycled content
to the extent practicable.  A preference shall be deemed practicable if the added cost of using a product with recycled content rather than virgin material is not more than ten percent (10%).  The greatest preference shall be given to:
(1) Those products, and
(2) Those contractors who use products
with the highest percentage of post-consumer waste material.
(b)	Each State agency authorized to purchase products or to contract for services for use by its departments, institutions, or agencies, or for any county, city, town, governmental entity or other subdivision of the State and public agency thereof in the expenditure of State funds shall:
(1)	Request information on supplies that are products with recycled content on solicitations for supplies that could be products with recycled content, including paper products, oil, plastic products, auto parts, compost materials, aggregate, insulation, solvents, and rubber products; and
(2)	Require contractors to certify the percentage of post-consumer waste material in supplies.
(c)	The total dollar amount of recycled paper or recycled paper products purchased by the State shall be not less than ten percent (10%) of the paper or paper products purchased on or after January 1, 1991.
(d)	Any person who believes that a particular product or material with recycled content may be beneficially used instead of another product or material may request the Secretary of Administration to evaluate that product or material.  The Secretary shall review each reasonable proposal to determine its merit and, if it finds that the product or material may be used beneficially, it may incorporate that product or material into its procurement procedures.
(e)	The Secretary of Administration shall review and revise its procedures and specifications on a continuing basis to encourage the use of products and materials with recycled content and shall, in developing new procedures and specifications, encourage the use of products and materials with recycled content.
(f)	All State agencies that have been authorized to make purchases or to contract for services for departments, institutions, or agencies, or for any county, city, town, governmental entity or other subdivision of the State and public agencies thereof in the expenditure of State funds, shall cooperate with the Secretary in carrying out the provisions of this section, and shall report to the Secretary within 90 days after the end of the fiscal year.  The Secretary shall report to Department of Human Resources within 180 days after the end of the fiscal year.  A report under this subsection shall provide information concerning:
(1)	The quantity of procurements of supplies made from recovered materials;
(2)	The percentage of post-consumer waste material in those supplies; and
(3)	Other relevant information about the implementation of this section.
(g)	For the purposes of this section, the following definitions shall apply, unless the context indicates otherwise:
(1)	‘Recycled content' means materials that have been recycled that are contained in the products or materials to be procured.  The term does not include internally generated scrap that is commonly used in industrial or manufacturing processes or waste or scrap purchased from another manufacturer who manufactures the same or a closely related product.
(2)	‘Post-consumer waste material' means any product that:
a.	Is generated by a business or a consumer;
b.	Has served its intended end use;
c.	Has been separated from solid waste for the purposes of collection, recycling, and disposition; and
d.	Does not include secondary waste material."
Sec. 4.  G.S. 143-135.5 reads as rewritten:
"§ 143-135.5. State policy; cooperation in promoting the use of small, minority, physically handicapped and women contractors, and the use of products with recycled content; purpose.
It is the policy of this State to encourage and promote the use of small, minority, physically handicapped and women contractors, and the use of products with recycled content, in State construction projects. All State agencies, institutions and political subdivisions shall cooperate with the Department of Administration and all other State agencies, institutions and political subdivisions in efforts to encourage and promote the use of  small, minority, physically handicapped and women contractors, and the use of products with recycled content, in achieving the purpose of this Article, which is the effective and economical construction of public buildings."
Sec. 5.  Article 8 of Chapter 143 of the General Statutes is amended by adding a section to read:
"§ 143-135.6.  Preference given to the purchase of products with recycled content.
(a)	The Secretary of Administration shall review and modify all bid and product specifications so that the specifications do not discriminate against products with recycled content.  Any board or governing body of the State, or of any institution of the State government, or of any county, city, town, or other subdivision of the State, that contracts for the purchase of products or for services, including the construction, alteration, or repair of any building, pursuant to this Article shall give preference:
(1)	In the purchase of products, to products with recycled content, and
(2)	In contracting for services, to contractors who use products with recycled content
to the extent practicable.  A preference shall be deemed practicable if the added cost of using a product with recycled content rather than virgin material is not more than ten percent (10%).  The greatest preference shall be given to:
(1) Those products, and
(2) Those contractors who use products
with the highest percentage of post-consumer waste material.
(b)	Any board or governing body of the State, or of any institution of the State government, or of any county, city, town, or other subdivision of the State, that contracts for the purchase of products or for services, including the construction, alteration, or repair of any building, pursuant to this Article shall:
(1)	Request information on supplies that are products with recycled content on solicitations for supplies that could be products with recycled content, including paper products, oil, plastic products, auto parts, compost materials, aggregate, insulation, solvents, and rubber products; and
(2)	Require contractors to certify the percentage of post-consumer waste material in supplies.
(c)	The total dollar amount of recycled paper or recycled paper products purchased pursuant to this Article shall be not less than ten percent (10%) of the paper or paper products purchased on or after January 1, 1991.
(d)	Any person who believes that a particular product or material with recycled content may be beneficially used instead of another product or material may request the Secretary of Administration to evaluate that product or material.  The Secretary shall review each reasonable proposal to determine its merit and, if it finds that the product or material may be used beneficially, it may incorporate that product or material into its procurement procedures.
(e)	The Secretary of Administration shall review and revise its procedures and specifications on a continuing basis to encourage the use of products and materials with recycled content and shall, in developing new procedures and specifications, encourage the use of products and materials with recycled content.
(f)	Any board or governing body of the State, or of any institution of the State government, or of any county, city, town, or other subdivision of the State, that contracts for the purchase of products or for services, including the construction, alteration, or repair of any building, pursuant to this Article shall cooperate with the Secretary in carrying out the provisions of this section, and shall report to the Secretary within 90 days after the end of the fiscal year.  The Secretary shall report to the Department of Human Resources within 180 days after the end of the fiscal year.  A report under this subsection shall provide information concerning:
(1)	The quantity of procurements of supplies made from recovered materials;
(2)	The percentage of post-consumer waste material in those supplies; and
(3)	Other relevant information about the implementation of this section.
(g)	For the purposes of this section, the following definitions shall apply, unless the context indicates otherwise:
(1)	‘Recycled content' means materials that have been recycled that are contained in the products or materials to be procured.  The term does not include internally generated scrap that is commonly used in industrial or manufacturing processes or waste or scrap purchased from another manufacturer who manufactures the same or a closely related product.
(2)	‘Post-consumer waste material' means any product that:
a.	Is generated by a business or a consumer;
b.	Has served its intended end use;
c.	Has been separated from solid waste for the purposes of collection, recycling, and disposition; and
d.	Does not include secondary waste material."
Sec. 6.  G.S. 136-28.4 reads as rewritten:
"§ 136-28.4. State policy; cooperation in promoting the use of small, minority, physically handicapped and women contractors, and the use of products with recycled content.
It is the policy of this State to encourage and promote the use of small, minority, physically handicapped and women contractors and the use of products with recycled content, in the construction, alteration and maintenance of State roads, streets, highways, and bridges and in the procurement of materials for such projects. All State agencies, institutions and political subdivisions shall cooperate with the Department of Transportation and all other State agencies, institutions and political subdivisions in efforts to encourage and promote the use of small, minority, physically handicapped and women contractors and the use of products with recycled content in such State construction, alteration, maintenance and procurement."
Sec. 7.  Article 2 of Chapter 136 of the General Statutes is amended by adding a section to read:
"§ 136-28.5.  Preference given to the purchase of products with recycled content.
(a)	The Department of Transportation shall review and modify all bid and product specifications so that the specifications do not discriminate against products with recycled content.  The Department of Transportation shall give preference:
(1)	In the purchase of products, to products with recycled content, and
(2)	In contracting for the construction, alteration, and maintenance of State roads, streets, highways, and bridges, to contractors who use products with recycled content
to the extent practicable.  A preference shall be deemed practicable if the added cost of using a product with recycled content rather than virgin material is not more than ten percent (10%).  The greatest preference shall be given to:
(1) Those products, and
(2) Those contractors who use products
with the highest percentage of post-consumer waste material.
(b)	The Department of Transportation shall:
(1)	Request information on supplies that are products with recycled content on solicitations for supplies that could be products with recycled content, including paper products, oil, plastic products, auto parts, compost materials, aggregate, insulation, solvents, and rubber products; and
(2)	Require contractors to certify the percentage of post-consumer waste material in supplies.
(c)	The total dollar amount of recycled paper or recycled paper products purchased by the Department of Transportation shall be not less than ten percent (10%) of the paper or paper products purchased on or after January 1, 1991.
(d)	Any person who believes that a particular product or material with recycled content may be beneficially used instead of another product or material may request the Department of Transportation to evaluate that product or material.  The Secretary shall review each reasonable proposal to determine its merit and, if it finds that the product or material may be used beneficially, it may incorporate that product or material into its procurement procedures.
(e)	The Department of Transportation shall review and revise its procedures and specifications on a continuing basis to encourage the use of products and materials with recycled content and shall, in developing new procedures and specifications, encourage the use of products and materials with recycled content.
(f)	The Department of Transportation shall report to the Department of Human Resources within 180 days after the end of the fiscal year.  A report under this subsection shall provide information concerning:
(1)	The quantity of procurements of supplies made from recovered materials;
(2)	The percentage of post-consumer waste material in those supplies; and
(3)	Other relevant information about the implementation of this section.
(g)	For the purposes of this section, the following definitions shall apply, unless the context indicates otherwise:
(1)	‘Recycled content' means materials that have been recycled that are contained in the products or materials to be procured.  The term does not include internally generated scrap that is commonly used in industrial or manufacturing processes or waste or scrap purchased from another manufacturer who manufactures the same or a closely related product.
(2)	‘Post-consumer waste material' means any product that:
a.	Is generated by a business or a consumer;
b.	Has served its intended end use;
c.	Has been separated from solid waste for the purposes of collection, recycling, and disposition; and
d.	Does not include secondary waste material."
Sec. 8.  This act shall become effective October 1, 1989.