GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION

CHAPTER 358
SENATE BILL 306

AN ACT TO CLARIFY THE LAW REGARDING STATE AND FEDERAL SURPLUS PROPERTY.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 143-49(4) reads as rewritten:
"(4)	To have general supervision of all storerooms and stores operated by the State government, or any of its departments, institutions or agencies and to have supervision of inventories of all tangible personal property belonging to the State government, or any of its departments, institutions or agencies. 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. "
Sec. 2.  Chapter 143 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 31A1.
"State Surplus Property Agency.
"§ 143-64.9A.  Department of Administration designated State Surplus Property Agency.
The Department of Administration is designated as the State agency for State surplus property, and with respect to the acquisition of State surplus property the agency shall be subject to the supervision and direction of the Secretary of Administration.
"§ 143-64.9B.  Definitions.
As used in this Article, except where the context clearly requires otherwise:
(1)	'Agency' means an existing department, institution, commission, committee, board, division, or bureau of the State.
(2)	'Nonprofit tax exempt organizations' means those nonprofit tax exempt medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, universities, schools for the mentally retarded, schools for the physically handicapped, radio and television stations licensed by the Federal Communications Commission as educational radio or educational television stations, public libraries, and civil defense organizations, that have been certified by the Internal Revenue Service as tax-exempt nonprofit organizations under section 501(c)(3) of the United States Internal Revenue Code of 1954.
"§ 143-64.9C.  Powers and duties of the State agency for surplus property.
(a)	The State Surplus Property Agency is authorized and directed to:
(1)	Sell all supplies, materials, and equipment that are surplus, obsolete, or unused;
(2)	Warehouse such property; and
(3)	Distribute such property to tax-supported or nonprofit tax-exempt organizations.
(b)	The State Surplus Property Agency is authorized and empowered to act as a clearinghouse of information for agencies and private nonprofit tax-exempt organizations, to locate property available for acquisition from State agencies, to ascertain the terms and conditions under which the property may be obtained, to receive requests from agencies and private nonprofit tax-exempt organizations, and transmit all available information about the property, and to aid and assist the agencies and private nonprofit tax-exempt organizations in transactions for the acquisition of State surplus property.
(c)	The State agency for surplus property, in the administration of this Article, shall cooperate to the fullest extent consistent with the provisions of this Article, with the departments or agencies of the State.
"§ 143-64.9D.  Powers of the Secretary to delegate authority.
(a)	The Secretary of Administration may delegate to any employees of the State agency for surplus property such power and authority as he or they deem reasonable and proper for the effective administration of this Article. The Secretary of Administration may, in his discretion, bond any person in the employ of the State agency for surplus property, handling moneys, signing checks, or receiving or distributing property from the United States under authority of this Article.
(b)	The Secretary of Administration may adopt rules necessary to carry out this Article.
"§ 143-64.9E.  Warehousing, transfer, etc., charges.
The State agency for surplus property may assess and collect service charges or fees for the acquisition, receipt, warehousing, distribution or transfer of any State surplus property.  All receipts from the transfer or sale of surplus, obsolete, or unused equipment of State departments, institutions, and agencies, that are supported by appropriations from the General Fund, except where the 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.  Prior to taking any action under this section concerning expenditures from the equipment reserve fund, the Secretary shall consult with the Advisory Budget Commission and the Joint Legislative Commission on Governmental Operations."
Sec. 3.  Article 3A of Chapter 143 of the General Statutes reads as rewritten:
"ARTICLE 3A.
"State Agency for Federal Surplus Property.
"§ 143-64.1.  Department of Administration designated State agency for federal surplus property.
The Department of Administration is hereby designated as the State agency for federal surplus property, and with respect to the acquisition of federal surplus property said agency shall be subject to the supervision and direction of the Secretary of Administration.
"§ 143-64.2.  Authority and duties of the State agency for federal surplus property.
(a)	The State agency for federal surplus property is hereby authorized and empowered
(1)	To acquire from the United States of America such property, including equipment, materials, books, or other supplies under the control of any department or agency of the United States of America as may be usable and necessary for educational purposes, public health purposes, or civil defense purposes, including research;
(2)	To warehouse such property; and
(3)	To distribute such property to tax-supported or nonprofit and tax-exempt (under section 501(c)(3) of the United States Internal Revenue Code of 1954) medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, universities, schools for the mentally retarded, schools for the physically handicapped, radio and television stations licensed by the Federal Communications Commission as educational radio or educational television stations, public libraries, civil defense organizations, and such other eligible donees within the State as are permitted to receive surplus property of the United States of America under the Federal Property and Administrative Services Act of 1949, as amended.
(b)	The State agency for federal surplus property may adopt rules necessary to carry out this Article.
(c)	The State agency for federal surplus property may appoint advisory boards or committees as needed to ensure that this Article and the rules adopted under this Article are consistent with federal law concerning surplus property.
(d)	The State agency for surplus property is authorized and empowered to take such action, make such expenditures and enter into such contracts, agreements and undertakings for and in the name of the State, require such reports and make such investigations as may be required by law or regulation of the United States of America in connection with the receipt, warehousing, and distribution of property received by the State agency for federal surplus property from the United States of America.
(e)	The State agency for federal surplus property is authorized and empowered to act as clearinghouse of information for the public and private nonprofit institutions and agencies referred to in subsection (a) of this section, to locate property available for acquisition from the United States of America, to ascertain the terms and conditions under which such property may be obtained, to receive requests from the above-mentioned institutions and agencies and to transmit to them all available information in reference to such property, and to aid and assist such institutions and agencies in every way possible in the consummation or acquisition or transactions hereunder.
(f)	The State agency for federal surplus property, in the administration of this Article, shall cooperate to the fullest extent consistent with the provisions of this Article, with the departments or agencies of the United States of America and shall make such reports in such form and containing such information as the United States of America or any of its departments or agencies may from time to time require, and it shall comply with the laws of the United States of America and the rules and regulations of any of the departments or agencies of the United States of America governing the allocation, transfer, use, or accounting for, property donable or donated to the State.
"§ 143-64.3.  Power of Department of Administration and Secretary to delegate authority.
The Department of Administration and/or the Secretary of Administration may delegate to any employees of the State agency for federal surplus property such power and authority as he or they deem reasonable and proper for the effective administration of this Article. The Department of Administration and/or the Secretary of Administration may, in his or their discretion, bond any person in the employ of the State agency for surplus property, handling moneys, signing checks, or receiving or distributing property from the United States under authority of this Article.
"§ 143-64.4.  Warehousing, transfer, etc., charges.
The State agency for federal surplus property is hereby authorized and empowered to assess and collect service charges or fees for the acquisition, receipts, warehousing, distribution or transfer of any property acquired by donation from the United States of America for educational purposes, public health purposes, public libraries or civil defense purposes, including research, and any such charges made or fees assessed shall be limited to those reasonably related to the costs of care and handling in respect to the acquisition, receipts, warehousing, distribution or transfer of the property by the State agency for surplus property.
"§ 143-64.5.  Department of Agriculture exempted from application of Article.
Notwithstanding any provisions or limitations of this Article, the North Carolina Department of Agriculture is authorized and empowered to distribute food, surplus commodities and agricultural products under contracts and agreements with the federal government or any of its departments or agencies, and the North Carolina Department of Agriculture is authorized and empowered to adopt rules in order to conform with federal requirements and standards for such distribution and also for the proper distribution of such food, commodities and agricultural products. To the extent set forth above and in this section, the provisions of this Article shall not apply to the North Carolina Department of Agriculture."
Sec. 4.  This act becomes effective July 1, 1991.
In the General Assembly read three times and ratified this the 24th day of June, 1991.

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James C. Gardner
President of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives