A BILL TO BE ENTITLED
AN ACT to Modify certain review procedures for UNiversity of north carolina construction contracts and capital improvement projects.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 58‑31‑40(b) reads as rewritten:
"(b)	Except as provided in subsection (b1) of this section and G.S. 116‑31.12, no agency or other person authorized or directed by law to select a plan and erect a building for the use of the State or any State institution shall receive and approve of the plan until it is submitted to and approved by the Commissioner as to the safety of the proposed building from fire, including the property's occupants or contents. No agency or person authorized or directed by law to select a plan or erect a building comprising 10,000 square feet or more for the use of any county, city, or school district shall receive and approve of the plan until it is submitted to and approved by the Commissioner as to the safety of the proposed building from fire, including the property's occupants or contents."
SECTION 2.  G.S. 58‑31‑40 is amended by adding a new subsection to read:
"(b1)	Capital improvement projects of The University of North Carolina or any of its constituent or affiliate institutions are not subject to subsection (b) of this section. The Board of Governors of The University of North Carolina or a constituent or affiliated institution may, however, submit the construction drawings and specifications for a capital improvement project to the Commissioner to review and conduct the required inspections for safety from fire, including the property's occupants or contents, and for compliance with other life safety requirements in the State Building Code as provided by G.S. 116‑31.12."
SECTION 3.  G.S. 116‑31.11 reads as rewritten:
"§ 116‑31.11.  Powers of Board regarding certain fee negotiations, contracts, and capital improvements.
(a)	Notwithstanding G.S. 143‑341(3) and G.S. 143‑135.1, the Board shall, with respect to the design, construction, or renovation of buildings, utilities, and other property developments of The University of North Carolina do all of the following:
(1)	Conduct the fee negotiations for all design contracts and supervise the letting of all construction and design contracts.
(2)	Develop procedures governing the responsibilities of The University of North Carolina and its affiliated and constituent institutions to perform the duties of the Department of Administration and the Director or Office of State Construction under G.S. 133‑1.1(d) and G.S. 143‑341(3).
(3)	Develop procedures and reasonable limitations governing the use of open‑end design agreements, subject to G.S. 143‑64.34.
(a1)	Notwithstanding G.S. 143‑341(3), the Board shall develop procedures governing the design review of buildings built by private entities that are initiated as part of a purchase‑back or lease‑back agreement with the Board of Governors of The University of North Carolina or with one of its constituent or affiliate institutions. A design review conducted in accordance with this subsection for a project that is part of a purchase‑back or lease‑back agreement with the Board of Governors or with one of its constituent or affiliate institutions shall not be subject to any further design review.(b)	The Board may delegate its authority under subsections (a) and (a1) of this section to a constituent or affiliated institution if the institution is qualified under guidelines adopted by the Board. In delegating its authority under subsection (a) of this section, the Board may establish benchmarks for each constituent or affiliate institution. The Board shall set the benchmark for each constituent or affiliate institution from time to time. In setting a constituent or affiliate institution's benchmark in accordance with this subsection, the Board shall consider the institution's overall capabilities and whether the institution has the management staff and internal financial controls that will enable it to administer competently and responsibly all additional management authority and discretion to be delegated to it. A constituent or affiliate institution is not exempt from G.S. 143‑341(3) unless the institution has an express delegation of authority from the Board of Governors. A constituent or affiliate institution is not exempt from G.S. 143‑341(3) for any project that exceeds the benchmark set for the institution in accordance with this subsection.(c)	The University shall use the standard contracts for design and construction currently in use for State capital improvement projects by the Office of State Construction of the Department of Administration.
	(e)	Notwithstanding any other provision of this Chapter, the Department of Administration shall not be the awarding authority for contracts awarded pursuant to this section; except as provided by this subsection and subsection (b) of this section. If a constituent or affiliate institution is not exempt from G.S. 143‑341(3), or if the project exceeds the benchmark set for the institution under subsection (b) of this section, then the Department of Administration shall be the awarding authority for the contract.
(f)	The Board of Governors shall annually report to the Director of the Budget the following:
(1)	A list of projects governed by this section.
(2)	The estimated cost of each project along with the actual cost.
(3)	The name of each person awarded a contract under this section.
(4)	Whether the person or business awarded a contract under this section meets the definition of "minority business" or "minority person" as defined in G.S. 143‑128.2(g)."
SECTION 4.  Article 1 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑31.12.  Safety review of certain capital improvement projects.
(a)	The Board of Governors of The University of North Carolina shall develop procedures governing the review of construction drawings and specifications and the required inspections for any capital improvement project initiated by the Board or any constituent or affiliate institution regarding the safety of the proposed project from fire, including the project's occupants or contents, and the project's compliance with other life safety requirements in the State Building Code. The procedures developed by the Board shall ensure that the review of construction drawings and specifications and the required inspections for any capital improvement project under this section are consistent with applicable State law and the appropriate building codes.(b)	In accordance with this section, the Board of Governors of The University of North Carolina or any constituent or affiliated institution that initiates a capital improvement project shall submit the construction drawings and specifications for the project to the appropriate authority for review regarding the safety of the project from fire, including the project's occupants or contents and the project's compliance with other life safety requirements in the State Building Code. The construction drawings and specifications may, in the discretion of the Board or constituent or affiliate institution as appropriate, be submitted to any of the following for the safety review and required inspections:  (i) the Commissioner of Insurance pursuant to G.S. 58‑31‑40(b1); or (ii) the appropriate local government, provided the local government verifies with the Board or constituent or affiliate institution that the local government employee conducting the review and inspections on behalf of the local government is properly certified in accordance with the rules of the Code Officials Qualification Board; or (iii) an independent, certified code-enforcement official. When construction drawings and specifications are submitted, reviewed, and approved under this section, no further safety review of the project is required. Neither the Board or any constituent or affiliate institution shall select a plan or erect a building for a capital improvement project until the construction drawings and specifications for the project are reviewed and approved in accordance with this section."
SECTION 5.  G.S. 143‑64.34(b) reads as rewritten:
"(b)	A capital improvement project of The University of North Carolina under G.S. 116‑31.11 where the estimated expenditure of public money is less than three hundred thousand dollars ($300,000) is exempt from this Article if all of the following apply:
(1)	The architectural, engineering, or surveying services to be rendered are under an open‑end design agreement.
(2)	The open‑end design agreement has been publicly announced.
(3)	The open‑end design agreement complies with procedures adopted by the University under G.S. 116‑31.11(a)(3)."
SECTION 6.  The catch line for G.S. 143‑135.1 reads as rewritten:
"§ 143‑135.1.  State buildings exempt from county and municipal building requirements; consideration of recommendations by counties and municipalities; county and municipalities authorized to conduct certain university capital improvement project safety reviews and inspections upon request."
SECTION 7.  G.S. 143‑135.1 is amended by adding a new subsection to read:
"(c1)	A county or municipality that is an approved jurisdiction for local plan review by the North Carolina Building Code Council may review the construction drawings and specifications and conduct the required inspections for a capital improvement project initiated by The University of North Carolina or one of its affiliate or constituent institutions regarding the safety of the project from fire, including the project's occupants or contents and the project's compliance with other life safety requirements in the State Building Code as provided by G.S. 116‑31.12."
SECTION 8.  G.S. 143‑341(3) reads as rewritten:
"(3)	Architecture and Engineering:
a.	To examine and approve all plans and specifications for the construction or renovation of:
1.	All State buildings or buildings located on State lands, except those buildings over which a local building code inspection department has and exercises jurisdiction; and
2.	All community college buildings requiring the estimated expenditure for construction or repair work for which public bidding is required under G.S. 143‑129 prior to the awarding of a contract for such work; and to examine and approve all changes in those plans and specifications made after the contract for such work has been awarded.
b.	To assist, as necessary, all agencies in the preparation of requests for appropriations for the construction or renovation of all State buildings.
b1.	To certify that a statement of needs pursuant to G.S. 143‑6 is feasible. For purposes of this sub‑subdivision, "feasible" means that the proposed project is sufficiently defined in overall scope; building program; site development; detailed design, construction, and equipment budgets; and comprehensive project scheduling so as to reasonably ensure that it may be completed with the amount of funds requested. At the discretion of the General Assembly, advanced planning funds may be appropriated in support of this certification. This sub‑subdivision shall not apply to requests for appropriations of less than one hundred thousand dollars ($100,000).
c.	To supervise the letting of all contracts for the design, construction or renovation of all State buildings and all community college buildings whose plans and specifications must be examined and approved under a.2. of this subdivision.
d.	To supervise and inspect all work done and materials used in the construction or renovation of all State buildings and all community college buildings whose plans and specifications must be examined and approved under a.2. of this subdivision; and no such work may be accepted by the State or by any State agency until it has been approved by the Department.
This subdivision does not apply to the design, construction, or renovation of projects by The University of North Carolina pursuant to G.S. 116‑31.11."
SECTION 9.  The Board of Governors of The University of North Carolina shall report to the Director of the Budget, to the Joint Legislative Oversight Committee on Capital Improvements, and to the Chairs of the Appropriations Committees of the Senate and House of Representatives by February 1, 2007, regarding the procedures developed by The University of North Carolina to implement this act.
SECTION 10.  This act shall apply to contracts for the design, construction, or renovation of buildings, utilities, and other property developments of The University of North Carolina entered into by The University of North Carolina on or after January 1, 2007.