GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	4 

SENATE BILL 760*
Judiciary I Committee Substitute Adopted 5/6/93
Third Edition Engrossed 5/10/93
House Committee Substitute Favorable 6/21/93

Short Title:  No Gifts/Pub. Contr. Officials.	(Public)
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Sponsors:
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Referred to:
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April 8, 1993

A BILL TO BE ENTITLED
AN ACT TO PROHIBIT THE GIVING OR RECEIPT OF GIFTS OR FAVORS TO GOVERNMENTAL OFFICERS AND EMPLOYEES CHARGED WITH PREPARING, AWARDING, ADMINISTERING, OR SUPERVISION OF PUBLIC CONTRACTS.
The General Assembly of North Carolina enacts:
Section 1.  The heading of Article 31 of Chapter 14 of the General Statutes reads as rewritten:
"Misconduct in Public Office and Employment."
Sec. 2.  Chapter 14 of the General Statutes is amended by adding the following new section to read:
"§ 14-252.1.  Gifts and favors to public officers and employees from public contractors prohibited.
(a)	It shall be unlawful for any contractor, subcontractor, or supplier who:
Has a contract with a governmental agency;
Has performed under such a contract within the past year; or
Anticipates bidding on, negotiating, or entering into such a contract in the future
to make gifts or to give favors to any officer or employee of a governmental agency who is charged with the duty of:
Preparing plans, specifications, or estimates for public contract;
Awarding or administering public contracts; or
Inspecting or supervising construction.
(b)	It shall also be unlawful for any officer or employee of a governmental agency who is charged by law with the duty of:
(1)	Preparing plans, specifications, or estimates for public contracts;
(2)	Awarding or administering public
	contracts; or
(3)	Inspecting or supervising construction
willfully to receive or accept any such gift or favor.
(c)	A violation of this section shall be a misdemeanor.
(d)	Gifts or favors made unlawful by this section shall not be allowed as a deduction for North Carolina tax purposes by any contractor, subcontractor, or supplier or its officers or employees.
(e)	This section does not apply to:
(1)	Reimbursement for participating in meetings, limited in amount to the actual travel and subsistence incurred in that participation;
(2)	Advertising items or souvenirs not exceeding twenty-five dollars ($25.00) in annual aggregate value from any one person;
(3)	Meals and entertainment furnished at banquets;
(4)	Donations to professional organizations to defray meeting expenses where governmental officers and employees are members of the professional organizations, or the participation of governmental officers and employees who are members of professional organizations in all scheduled meeting functions available to all members of the professional organization attending the meeting;
(5)	Customary gifts or favors between governmental officers and employees and their friends and relatives or the friends and relatives of their spouses, minor children, or members of their household where it is clear that it is that relationship rather than the business of the individual concerned which is the motivating factor for the gift or favor. However, all such gifts knowingly made or received are required to be reported by the donee to the agency head if the gifts are made by a contractor, subcontractor, or supplier doing business directly or indirectly with the governmental agency employing the recipient of such a gift.
(f)	The following definitions apply in this section:
(1)	Contractor. – a person entering into a public contract with a governmental agency.
(2)	Governmental Agency. – The State of North Carolina, its agencies, institutions, and political subdivisions, all municipal corporations and all other public units, agencies, and authorities which are authorized to enter into public contracts for construction or repair or for procurement of goods or services.
(3)	Person. – Any individual doing business as a contractor, subcontractor, or supplier, or any partnership, corporation, association, or other entity formed for that purpose.
(4)	Public Contract. – An agreement between, or on behalf of, a governmental agency and any person for the procurement of goods, services, or construction or repair."
Sec. 3.  G.S. 133-32 is repealed.
Sec. 4.  This act becomes effective December 1, 1993, and applies to offenses committed on or after that date.  Notwithstanding the repeal of G.S. 133-32 by Section 3 of this act, prosecutions for offenses committed under the former Section 133-32 prior to December 1, 1993, shall not be affected.