A BILL TO BE ENTITLED
AN ACT to require state agencies to use electronic procurement and contract management systems developed by the department of administration, as recommended by the joint legislative program evaluation oversight committee.
The General Assembly of North Carolina enacts:

PART I. SUBSTANTIVE CHANGES
SECTION 1.1.  G.S. 143‑48.3 reads as rewritten:
"§ 143‑48.3.  Electronic procurement and contract management.
(a)	Development of Digital Standards and Systems. – The Department of Administration shall develop and maintain electronic or digital standards and systems for procurement of goods and services and for contract management. In developing and deploying these standards and systems, the Department of Administration shall do all of the following:
(1)	Consult with the Office of the State Controller, the Department of Information Technology, the Department of State Auditor, the Department of State Treasurer, The University of North Carolina General Administration, the Community Colleges System Office, and the Department of Public Instruction.
(2)	Comply with the State government‑wide technical architecture for information technology, as required by the State Chief Information Officer.
(3)	Utilize the Department of Information Technology as an Application Service Provider, which shall operate these electronic standards and systems, through State ownership or commercial leasing, in accordance with the requirements and operating standards developed by the Department of Administration and the financial reporting and accounting procedures of the Office of the State Controller.
(4)	Ensure that any contract management system developed pursuant to this subsection includes the capacity to ensure at least all of the following:
a.	That payments are made in accordance with the applicable contract terms and conditions.
b.	That key documents related to contracts can be stored, searched, and retrieved from the system by appropriate personnel.
c.	That customizable management reports can be generated by State agencies that are parties to contracts or that have contract oversight responsibilities.
(5)	Provide State agencies with advance notice of new standards or systems developed pursuant to this section sufficient to allow those agencies to smoothly transition to using the new standards or systems. That notice shall include a clear statement about the date when affected agencies will be required to use the new standard or system. 
	
(b)	Training in Use of Digital Standards and Systems. – The Department of Administration, in conjunction with the Office of the State Controller and the Department of Information Technology may, upon request, provide to all State agencies, universities, and community colleges, training in the use of the electronic procurement system.
	
(d)	Relation to Other Law. – Except as provided in subdivision (g)(2) of this section, this section does not do any of the following:
(1)	Modify existing law relating to procurement between The University of North Carolina, UNC Health Care, community colleges, and the Department of Administration.
(2)	Modify or repeal any complete or partial exemption to this Article.
	
(f)	Opt‑In for Certain Entities. – Any University or community college may opt into the North Carolina E‑Procurement Service or any other service operated pursuant to this section.
(g)	Applicability. – This section, and the standards and systems developed pursuant to it, apply to State agencies as follows:
(1)	State agencies subject to this Article. – A State agency that is subject to this Article that enters into a service contract, contract for the purchase of goods, or other contract, shall use the standards and systems developed pursuant to this section.
(2)	State agencies exempt from this Article. – A State agency that is otherwise exempt from this Article shall nonetheless provide to the Department of Administration timely information related to each contract entered into by the agency for inclusion in systems developed pursuant to this section. Such an agency is not required by this section to change its procurement or contract management process in any other way.
(h)	Definition of State Agency. – For purposes of subsections (g) and (i) of this section, the term "State agency" means a unit of the executive, legislative, or judicial branch of State government, such as a department, an institution, a division, a commission, a board, a council, but does not include The University of North Carolina, a constituent institution of The University of North Carolina, a community college, or a unit of local government.
(i)	Certain Contracts Prohibited. – A State agency shall not enter into any new contract, or renew an existing contract, for the performance of any electronic contract procurement or contract management service or function if the agency has received notice pursuant to subdivision (a)(5) of this section that the Department of Administration has deployed a new system that will perform the service or function in question."
SECTION 1.2.  Nothing in this act shall be construed to require the breach of any contract that exists on the effective date of this act.

PART II. CONFORMING CHANGES
SECTION 2.1.  G.S. 18C‑150 reads as rewritten:
"§ 18C‑150.  Procurements.
The Commission shall be exempt from Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2), but may use the services of the Department of Administration in procuring goods and services for the Commission. However, the Commission shall include in all contracts to be awarded by the Commission under this section a standard clause which provides that the State Auditor and internal auditors of the Commission may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Commission shall not award a cost plus percentage of cost contract for any purpose. For purposes of this provision, "cost plus percentage of cost contract" is defined as a contract under which the contractor receives payment for indeterminate costs plus a stated percentage or amount of profit based upon such costs. This provision shall not apply to Commission contracts that require costs to be predetermined and approved by the Commission and a total not to exceed the amount specified in each contract to be paid to the contractor."
SECTION 2.2.  G.S. 53‑320(d) reads as rewritten:
"(d)	The Commissioner may enter into agreements with any bank supervisory agency supervising (i) a State trust institution engaging in trust business outside this State or (ii) an out‑of‑state trust institution maintaining a trust office or representative trust office in this State to engage the services of the agency's examiners at a reasonable rate of compensation or to provide the services of the Commissioner's examiners to the agency at a reasonable rate of compensation. Article 3 of Chapter 143 of the General Statutes does not apply to agreements authorized by this subsection, except as provided in G.S. 143‑48.3(g)(2). However, the Commissioner shall: (i) submit all proposed agreements or contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subsection to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all agreements or contracts to be awarded by the Commissioner under this subsection a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the contractor during and after the term of the agreement or contract to verify accounts and data affecting fees and performance. The Commissioner shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.3.  G.S. 53‑326(d) reads as rewritten:
"(d)	The Commissioner may enter into agreements with bank supervisory agencies supervising (i) a State trust institution engaging in trust business in a foreign country or (ii) a foreign trust institution maintaining a trust office or representative trust office in this State to engage the services of the bank supervisory agency's examiners at a reasonable rate of compensation or to provide the services of the Commissioner's examiners to the bank supervisory agency at a reasonable rate of compensation. Article 3 of Chapter 143 of the General Statutes does not apply to agreements authorized by this section, except as provided in G.S. 143‑48.3(g)(2). However, the Commissioner shall: (i) submit all proposed agreements or contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subsection to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all agreements or contracts to be awarded by the Commissioner under this subsection a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the contractor during and after the term of the agreement or contract to verify accounts and data affecting fees and performance. The Commissioner shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.4.  G.S. 53‑391 reads as rewritten:
"§ 53‑391.  Employment of counsel, accountants, and other experts; compensation.
The Commissioner, for the purpose of exercising any power under the provisions of this Subpart, may (i) employ any liquidating agents, attorneys, accountants, consultants, and clerks necessary to properly conduct the business of or liquidate and distribute the assets of a State trust company; (ii) fix the compensation for the agents, attorneys, accountants, consultants, and clerks; and (iii) pay the compensation of those persons out of the assets of the State trust company. Provided, that all expenditures described in this section shall be approved by the resident or presiding judge in the county in which the action is pending. Payments made by the Commissioner pursuant to this section shall not be subject to the requirements of Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). As used in this Subpart, the term "Commissioner" includes the Commissioner's duly appointed agents. The Commissioner shall: (i) submit all proposed agreements or contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this section to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all agreements or contracts to be awarded by the Commissioner under this section a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the contractor during and after the term of the agreement or contract to verify accounts and data affecting fees and performance. The Commissioner shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.5.  G.S. 53‑401 reads as rewritten:
"§ 53‑401.  Provisions for conservator; duties and powers.
Whenever the Commissioner deems it necessary in order to conserve the assets of a State trust company for the benefit of clients or creditors, the Commissioner may appoint a conservator for the State trust company and require of the conservator a bond with any surety the Commissioner deems necessary and proper in an amount deemed sufficient by the Commissioner. The conservator, under the direction of the Commissioner, shall take possession of the fiduciary records and other books, records, and assets of every description of the State trust company placed under conservatorship and take actions necessary to conserve those assets pending further disposition of its business as provided by law. Except as provided in G.S. 53‑405, the conservator shall have all rights, powers, and privileges, subject to the approval of the Commissioner, now possessed by or given to the Commissioner under the provisions of Subpart B and Subpart D of this Part. All expenses of the conservator shall be paid out of the assets of the State trust company under conservatorship and shall be a lien thereon which shall be prior to any other lien provided by law. The compensation of the conservator shall be determined by the Commissioner and shall be based on the time and experience of the conservator and the complexity of the conservatorship. Compensation of the conservator shall not be subject to the requirements of Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). However, the Commissioner shall: (i) submit all proposed agreements or contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this section to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all agreements or contracts to be awarded by the Commissioner under this section a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the conservator during and after the term of the agreement or contract to verify accounts and data affecting fees and performance. The Commissioner shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.6.  G.S. 58‑10‑285(d) reads as rewritten:
"(d)	The Commissioner may contract, at the expense of the person filing the application, with any attorneys, actuaries, economists, accountants, consultants, or other professional advisors not otherwise a part of the Commissioner's staff to assist the Commissioner in reviewing the application. These contracts are personal professional service contracts exempt from Articles 3 and 3C of Chapter 143 of the General Statutes, except that these contracts shall comply with the requirements of G.S. 143‑48.3(g)(2)."
SECTION 2.7.  G.S. 58‑10‑315(e) reads as rewritten:
"(e)	The Commissioner may retain, at the expense of the person filing the application, any attorneys, actuaries, economists, accountants, consultants, or other professional advisors not otherwise a part of the Commissioner's staff to assist the Commissioner in reviewing the application. These contracts are personal professional service contracts exempt from Articles 3 and 3C of Chapter 143 of the General Statutes, except that these contracts shall comply with the requirements of G.S. 143‑48.3(g)(2)."
SECTION 2.8.  G.S. 58‑10‑350(3) reads as rewritten:
"§ 58‑10‑350.  Commissioner use of consultants and other professionals.
The Commissioner may contract with consultants and other professionals to expedite and complete the application process, audits, and other regulatory activities required pursuant to this Part. Such contracts for financial, legal, audits, and other services shall not be subject to any of the following:
(1)	G.S. 114‑2.3.
(2)	G.S. 147‑17.
(3)	Articles 3, 3C, and 8 of Chapter 143 of the General Statutes, except for G.S. 143‑48.3(g)(2), together with rules and procedures adopted under those Articles concerning procurement, contracting, and contract review."
SECTION 2.9.  G.S. 58‑33‑30 reads as rewritten:
"§ 58‑33‑30.  License requirements.
…
(e)	Examination. –
…
(4)	The answers of the applicant to the examination shall be provided by the applicant under the Commissioner's supervision. The Commissioner shall give examinations at such times and places within this State as the Commissioner considers necessary reasonably to serve the convenience of both the Commissioner and applicants: Provided that the Commissioner may contract directly with persons for the processing of examination application forms and for the administration and grading of the examinations required by this section; the Commissioner may charge a reasonable fee in addition to the registration fee charged under G.S. 58‑33‑125, to offset the cost of the examination contract authorized by this subsection; and such contracts shall not be subject to Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). However, the Commissioner shall: (i) submit all proposed agreements or contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subdivision to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all contracts to be awarded by the Commissioner under this subdivision a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Commissioner shall not award a cost plus percentage of cost contract for any purpose.
(5)	The Commissioner shall collect in advance the examination and registration fees provided in G.S. 58‑33‑125 and in subsection (4) of this section. The Commissioner shall make or cause to be made available to all applicants, for a reasonable fee to offset the costs of production, materials that he considers necessary for the applicants' proper preparation for examinations. The Commissioner may contract directly with publishers and other suppliers for the production of the preparatory materials, and contracts so let by the Commissioner shall not be subject to Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). However, the Commissioner shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subdivision to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all contracts to be awarded by the Commissioner under this subdivision a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Commissioner shall not award a cost plus percentage of cost contract for any purpose.
…."
SECTION 2.10.  G.S. 58‑33‑125(e) reads as rewritten:
"(e)	A resident licensee may obtain a duplicate photo‑bearing license at times and places within this State that the Commissioner considers necessary and reasonable to serve the convenience of both the Commissioner and the licensee. The Commissioner may contract directly with persons for processing of duplicate photo‑bearing licenses, and the contract shall not be subject to Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). The Commissioner may charge a reasonable fee for duplicating a photo‑bearing license in an amount that offsets the costs to the Department of duplicating the license, including costs associated with any contract entered into pursuant to this subsection. However, the Commissioner shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subsection to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all contracts to be awarded by the Commissioner under this subsection a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Commissioner shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.11.  G.S. 58‑33‑130(a) reads as rewritten:
"(a)	The Commissioner may adopt rules to provide for a program of continuing education requirements for the purpose of enhancing the professional competence and professional responsibility of adjusters and motor vehicle damage appraisers. The rules may include criteria for:
(1)	The content of continuing education courses;
(2)	Accreditation of continuing education sponsors and programs;
(3)	Accreditation of videotape or other audiovisual programs;
(4)	Computation of credit;
(5)	Special cases and exemptions;
(6)	General compliance procedures; and
(7)	Sanctions for noncompliance.
The Commissioner may contract directly with persons for the administration of the program provided for by this section, and those contracts shall not be subject to Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). However, the Commissioner shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subsection to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all contracts to be awarded by the Commissioner under this subsection a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Commissioner shall not award a cost plus percentage of cost agreement or contract for any purpose. The Commissioner may charge a reasonable fee to course providers to offset the cost of the program, including costs associated with contracts authorized by this subsection. The fee authorized by this subsection shall be in addition to the fees specified in G.S. 58‑33‑133. As used in this section and in G.S. 58‑33‑132, "administrator" means any person with whom the Commissioner has contracted under this subsection."
SECTION 2.12.  G.S. 58‑56A‑10(f) reads as rewritten:
"(f)	The Commissioner may contract with consultants and other professionals with relevant expertise as necessary and appropriate to conduct investigation, hearing, and appeals activities as provided in this section. Such contracts shall not be subject to G.S. 114‑2.3 or G.S. 147‑17. Except as provided in G.S. 143‑48.3(g)(2), such contracts shall also not be subject to Articles 3, 3C, and 8 of Chapter 143 of the General Statutes, together with rules and procedures adopted under those Articles concerning procurement, contracting, and contract review."
SECTION 2.13.  G.S. 58‑58‑50(r) reads as rewritten:
"(r)	The Department shall have full authority to enter into contracts or other agreements with the National Association of Insurance Commissioners or any other state, entity, or person to fulfill the requirements of this section. Except as provided in G.S. 143‑48.3(g)(2), contracts shall not be subject to Articles 3, 3C, and 8 of Chapter 143 of the General Statutes or any rules and procedures adopted under those Articles concerning procurement, contracting, and contract review."
SECTION 2.14.  G.S. 58‑65‑131(e) reads as rewritten:
"(e)	Filing Conversion Plan; Costs of Review. – A corporation shall file a plan for conversion with the Commissioner and submit a copy to the Attorney General at least 120 days before the proposed date of conversion. The corporation or the new corporation shall reimburse the Department of Insurance and the office of the Attorney General for the actual costs of reviewing, analyzing, and processing the plan. The Commissioner and the Attorney General may contract with experts, consultants, or other professional advisors to assist in reviewing the plan. These contracts are personal professional service contracts exempt from Articles 3 and 3C of Chapter 143 of the General Statutes, except that these contracts shall comply with the requirements of G.S. 143‑48.3(g)(2). Contract costs for these personal professional services shall not exceed an amount that is reasonable and appropriate for the review of the plan."
SECTION 2.15.  G.S. 58‑71‑40(d) reads as rewritten:
"(d)	When a license is issued under this section, the Commissioner shall issue a picture identification card, of design, size, and content approved by the Commissioner, to the licensee. Each licensee must carry this card at all times when working in the scope of the licensee's employment. A licensee whose license terminates or is terminated shall surrender the identification card to the Commissioner within 10 working days after the termination. The Commissioner may contract directly with persons for the processing and issuance of picture identification cards required by this section and may charge a reasonable fee in addition to the license fee charged under G.S. 58‑71‑55 in an amount that offsets the cost of the service, including the costs associated with the contract authorized by this subsection. Contracts entered into pursuant to this subsection shall not be subject to Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). However, the Commissioner shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subsection to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all contracts to be awarded by the Commissioner under this subsection a standard clause which provides that the State Auditor and internal auditors of the Commissioner may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Commissioner shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.16.  G.S. 58‑82A‑2.1(c) reads as rewritten:
"(c)	When a license is issued under this section, the Commissioner shall issue to the licensee an identification card approved by the Commissioner. Each licensee must carry this card at all times when working in the scope of the licensee's employment. A licensee whose license terminates or is terminated shall surrender the identification card to the Commissioner, when requested by the Commissioner. The Commissioner may contract directly with persons for the processing and issuance of identification cards required by this section and may charge a reasonable fee in addition to the license fee in an amount that offsets the cost of the service, including the costs associated with the contract authorized by this subsection. Contracts entered into under this subsection shall not be subject to Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2)."
SECTION 2.17.  G.S. 63A‑24(a)(1) reads as rewritten:
"(1)	Except as provided in G.S. 143‑48.3(g)(2), Article 3 of Chapter 143 of the General Statutes does not apply to contracts for services listed in 49 U.S.C. § 2210(a)(16) or contracts for special user projects. That Article also does not apply to other contracts for projects, but, with respect to these other contracts, the powers and duties established in that Article shall be exercised by the Authority and the Secretary of Administration, and other State officers, employees, or agencies shall have no duties or responsibilities concerning the contracts. However, the Authority shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subdivision to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all contracts to be awarded by the Authority under this subdivision a standard clause which provides that the State Auditor and internal auditors of the Authority may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Authority shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.18.  G.S. 108A‑55(b) reads as rewritten:
"(b)	Payments shall be made only to intermediate care facilities, hospitals and nursing homes licensed and approved under the laws of the State of North Carolina or under the laws of another state, or to pharmacies, physicians, dentists, optometrists or other providers of health‑related services authorized by the Department. Payments may also be made to such fiscal intermediaries and to the capitation or prepaid health service contractors as may be authorized by the Department. Arrangements under which payments are made to capitation or prepaid health services contracts are not subject to the provisions of Chapter 58 of the General Statutes or of Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). However, the Department shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subsection to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all agreements or contracts to be awarded by the Department under this subsection a standard clause which provides that the State Auditor and internal auditors of the Department may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Department shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.19.  G.S. 114‑9.4(b) reads as rewritten:
"(b)	If the Attorney General makes the determination described in subsection (a) of this section, the Attorney General shall request proposals from private attorneys to represent the State agency on a contingency fee basis and draft a written request for proposals from private attorneys, unless the Attorney General determines that requesting proposals is not feasible under the circumstances and sets forth the basis for this determination in writing. A request for proposals under this provision is not subject to Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). Until the conclusion of the legal proceeding or other matter for which the services of the private attorney were sought, all proposals received shall be maintained by the Attorney General and shall not be deemed a public record within the meaning of Chapter 132 of the General Statutes. All proposals maintained under this subsection shall be made available to the State Auditor for oversight purposes, upon request."
SECTION 2.20.  G.S. 115D‑67.4 reads as rewritten:
"§ 115D‑67.4.  Fees collected by the Center; purchases using Center funds.
Notwithstanding any other provision of law, all fees collected by the Applied Textile Technology Center for services to the textile industry, except for regular curriculum and continuing education tuition receipts, shall be retained by the Center and used for the operations of the Center. Purchases made by the Center using these funds are not subject to the provisions of Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). However, the Center shall: (i) submit all proposed agreements or contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this section to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and (ii) include in all agreements or contracts to be awarded by the Center under this section a standard clause which provides that the State Auditor and internal auditors of the Center may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Center shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.21.  G.S. 115D‑89.4(b) reads as rewritten:
"(b)	The purchase of goods and services by the State Board of Proprietary Schools shall be exempt from the requirements of Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2)."
SECTION 2.22.  G.S. 116‑37(h) reads as rewritten:
"(h)	Purchases. – Notwithstanding the provisions of Articles 3, 3A, and 3C of Chapter 143 of the General Statutes to the contrary, the board of directors shall establish policies and regulations governing the purchasing requirements of the University of North Carolina Health Care System. These policies and regulations shall provide for requests for proposals, competitive bidding, or purchasing by means other than competitive bidding, contract negotiations, and contract awards for purchasing supplies, materials, equipment, and services which are necessary and appropriate to fulfill the clinical, educational, research, and community service missions of the University of North Carolina Health Care System. The board of directors shall submit all initial policies and regulations adopted pursuant to this subsection to the Division of Purchase and Contract for review upon adoption by the board. Any subsequent changes to these policies and regulations adopted by the board shall be submitted to the Division of Purchase and Contract for review. Any comments by the Division of Purchase and Contract shall be submitted to the Chief Executive Officer and to the President of The University of North Carolina. Nothing in this section shall be construed to exempt the board of directors from compliance with G.S. 143‑48.3(g)(2)."
SECTION 2.23.  G.S. 116‑40.6(c) reads as rewritten:
"(c)	Purchases. – Notwithstanding the provisions of Articles 3, 3A, and 3C of Chapter 143 of the General Statutes to the contrary, the Board of Trustees of East Carolina University shall establish policies and regulations governing the purchasing requirements of the Medical Faculty Practice Plan. These policies and regulations shall provide for requests for proposals, competitive bidding, or purchasing by means other than competitive bidding, contract negotiations, and contract awards for purchasing supplies, materials, equipment, and services which are necessary and appropriate to fulfill the clinical and educational missions of the Medical Faculty Practice Plan. Pursuant to such policies and regulations, purchases for the Medical Faculty Practice Plan shall be effected by a purchasing office maintained by East Carolina University. The board of trustees shall submit all initial policies and regulations adopted under this subsection to the Division of Purchase and Contract for review upon adoption by the board. Any subsequent changes to these policies and regulations adopted by the board shall be submitted to the Division of Purchase and Contract for review. Any comments by the Division of Purchase and Contract shall be submitted to the Chancellor of East Carolina University and to the President of The University of North Carolina. Nothing in this section shall be construed to exempt the Board of Trustees from compliance with G.S. 143‑48.3(g)(2)."
SECTION 2.24.  G.S. 135‑48.34 reads as rewritten:
"§ 135‑48.34.  Contracts not subject to Article 3 of Chapter 143 of the General Statutes.
The design, adoption, and implementation of the preferred provider contracts, networks, and optional alternative comprehensive health benefit plans, and programs available under the optional alternative plans, as authorized under G.S. 135‑48.2, are not subject to the requirements of Article 3 of Chapter 143 of the General Statutes, other than G.S. 143‑48.3(g)(2), but are subject to the requirements of G.S. 135‑48.33."
SECTION 2.25.  G.S. 136‑89.194(g)(1) reads as rewritten:
"(g)	Contract Exemptions. – The following provisions concerning the purchase of goods and services by a State agency do not apply to the Turnpike Authority:
(1)	Article 3 of Chapter 143 of the General Statutes, except as provided in G.S. 143‑48.3(g)(2). The Authority may use the services of the Department of Administration in procuring goods and services that are not specific to establishing and operating a toll revenue system. However, the Authority shall: (i) submit all proposed contracts for supplies, materials, printing, equipment, and contractual services that exceed one million dollars ($1,000,000) authorized by this subdivision to the Attorney General or the Attorney General's designee for review as provided in G.S. 114‑8.3; and, (ii) include in all proposed contracts to be awarded by the Authority under this subdivision a standard clause which provides that the State Auditor and internal auditors of the Authority may audit the records of the contractor during and after the term of the contract to verify accounts and data affecting fees and performance. The Authority shall not award a cost plus percentage of cost agreement or contract for any purpose."
SECTION 2.26.  G.S. 143B‑139.4B(b) reads as rewritten:
"(b)	The North Carolina Office of Rural Health shall oversee the establishment and administration of a statewide telepsychiatry program that allows referring sites to utilize consulting providers at a consultant site to provide timely psychiatric assessment and rapid initiation of treatment for patients at the referring site experiencing an acute mental health or substance abuse crisis. Notwithstanding the provisions of Article 3 of Chapter 143 of the General Statutes or any other provision of law, the Office of Rural Health shall contract with East Carolina University Center for Telepsychiatry and e‑Behavioral Health to administer the telepsychiatry program. Nothing in this subsection shall be construed to exempt the Office from complying with the requirements of G.S. 143‑48.3(g)(2). The contract shall include a provision requiring East Carolina University Center for Telepsychiatry and e‑Behavioral Health to work toward implementing this program on a statewide basis by no later than January 1, 2014, and to report annually to the Office of Rural Health on the following performance measures:
(1)	Number of consultant sites and referring sites participating in the program.
(2)	Number of psychiatric assessments conducted under the program, reported by site or region.
(3)	Length of stay of patients receiving telepsychiatry services in the emergency departments of hospitals participating in the program, reported by disposition.
(4)	Number of involuntary commitments recommended as a result of psychiatric assessments conducted by consulting providers under the program, reported by site or region and by year, and compared to the number of involuntary commitments recommended prior to implementation of this program."
SECTION 2.27.  G.S. 143B‑431.01(b) reads as rewritten:
"(b)	Contract. – The Department of Commerce is authorized to contract with a North Carolina nonprofit corporation to perform one or more of the Department's functions, powers, duties, and obligations set forth in G.S. 143B‑431, except as provided in this subsection. Except as provided in G.S. 143‑48.3(g)(2), the contract entered into pursuant to this section between the Department and the Economic Development Partnership of North Carolina is exempt from Articles 3 and 3C of Chapter 143 of the General Statutes and G.S. 143C‑6‑23. If the Department contracts with a North Carolina nonprofit corporation to promote and grow the travel and tourism industries, then all funds appropriated to the Department for tourism marketing purposes shall be used for a research‑based, comprehensive marketing program directed toward consumers in key markets most likely to travel to North Carolina and not for ancillary activities, such as statewide branding and business development marketing. The Department may not contract with a North Carolina nonprofit corporation regarding any of the following:
(1)	The obligation or commitment of funds under this Article, such as the One North Carolina Fund, the Job Development Investment Grant Program, the Industrial Development Fund, or the Job Maintenance and Capital Development Fund.
(2)	The Division of Employment Security, including the administration of unemployment insurance.
(3)	The functions set forth in G.S. 143B‑431(a)(2).
(4)	The administration of funds or grants received from the federal government or its agencies."
SECTION 2.28.  G.S. 147‑86.72(c)(2) reads as rewritten:
"(2)	Notwithstanding provisions of Article 3 of Chapter 143 of the General Statutes, engage the services of consultants on a contract basis for rendering professional and technical assistance and advice. Nothing in this subdivision shall be construed to exempt the Board of Trustees from complying with the requirements of G.S. 143‑48.3(g)(2)."
SECTION 2.29.  G.S. 148‑134 reads as rewritten:
"§ 148‑134.  Preference for Division of Adult Correction of the Department of Public Safety products.
All departments, institutions, and agencies of this State that are supported in whole or in part by the State shall give preference to Correction Enterprises products in purchasing articles, products, and commodities that these departments, institutions, and agencies require and that are manufactured or produced within the State prison system and offered for sale to them by Correction Enterprises. No article or commodity available from Correction Enterprises shall be purchased by any State department, institution, or agency from any other source unless the prison product does not meet the standard specifications and the reasonable requirements of the department, institution, or agency as determined by the Secretary of Administration or the requisition cannot be complied with because of an insufficient supply of the articles or commodities required. Except as provided in G.S. 143‑48.3(g)(2), the provisions of Article 3 of Chapter 143 of the General Statutes respecting contracting for the purchase of all supplies, materials, and equipment required by the State government or any of its departments, institutions, or agencies under competitive bidding shall not apply to articles or commodities purchased from Correction Enterprises. The Section of Correction Enterprises of the Division of Adult Correction shall be required to keep the price of such articles or commodities substantially in accord with that paid by governmental agencies for similar articles and commodities of equivalent quality."

PART III. EFFECTIVE DATE
SECTION 3.  This act becomes effective October 1, 2017.