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--- version:Edition 1+++ version:Filed@@ -1,15 +1,15 @@GENERAL ASSEMBLY OF NORTH CAROLINASESSION 2025-S 1-SENATE BILL 465+S D+SENATE BILL DRS15186-MQ-15Short Title: Agency Vacant Property. (Public)Sponsors: Senators Burgin and Chaudhuri (Primary Sponsors).-Referred to: Rules and Operations of the Senate-March 25, 2025-*S465-v-1*+Referred to:++*DRS15186-MQ-15*A BILL TO BE ENTITLED 1-AN ACT TO REQUIRE TH E DEPARTMENT OF ADMI NISTRATION TO ASSESS , 2+AN ACT TO REQUIRE THE DEPARTMENT OF ADMINISTRATION TO ASSESS, 2CATALOG, REPORT, AND DISPOSE OF CERTAIN VACANT STATE PROPERTY. 3The General Assembly of North Carolina enacts: 4SECTION 1. G.S. 143-341 reads as rewritten: 5@@ -23,7 +23,7 @@… 13(4) Real Property Control: 14a. To prepare and keep current a complete and accurate inventory of all 15-land owned or leased by the Sta te or by any State agency. This 16+land owned or leased by the State or by any State agency. This 16inventory shall show the location, including the latitude and longitude 17of the center of the property, acreage, description, source of title and 18current use of all land (including swamplands or marshlands) owned 19@@ -44,8 +44,12 @@3. The agency or agencies that occupy the building.The current 34occupant of the building or, if the building is vacant, the current 35period of vacancy. 36-General Assembly Of North Carolina Session 2025-Page 2 Senate Bill 465-First Edition+FILED SENATE+Mar 24, 2025+S.B. 465+PRINCIPAL CLERK+General Assembly Of North Carolina Session 2025+Page 2 DRS15186-MQ-154. Ownership information for the building. 15. The size of the building in terms of both gross and usable 2square feet. 3@@ -61,12 +65,12 @@11. The number of full -time equivalent positions assigned to the 13building by each agency occupant. 1412. The amount of the building that is utilized, measured in 15-accordance with the procedures developed pursuant to 16+accordance with the procedures developed pursuant to 16G.S. 143-341.2(a)(3). 1713. Maintenance record, including replacement and maintenance 18schedules for all major mechanical systems. 1914. Parking and employee facilities. 20-15. Any other information deemed relevant by the Depa rtment of 21+15. Any other information deemed relevant by the Department of 21Administration. 22…." 23SECTION 2. G.S. 143-341.2 reads as rewritten: 24@@ -81,10 +85,10 @@operations. The plan shall do all of the following: 33a. Identify the type, quantity, and location of facilities and spaces 34required to fully support State government operations. 35-b. Include an in -depth analysis of existing State -owned facilities' 36+b. Include an in -depth analysis of existing State -owned facilities ' 36locations, capability, utilization, occupancy status, and condition. 37c. Establish strategic priorities and objectives that allow the Department 38-of Administration to manage the performance of the State's portfolio 39+of Administration to manage the performance of the State 's portfolio 39of real property in a way that maximizes the utilization of State-owned 40facilities and minimizes operating and maintenance costs. 41d. Take into consideration the information provided to the Department in 42@@ -98,17 +102,17 @@relocating State agencies from leased facilities to State -owned 50facilities. 51General Assembly Of North Carolina Session 2025-Senate Bill 465-First Edition Page 3+DRS15186-MQ-15 Page 3g. Describe all changes made to space planning standards developed and 1distributed as provided in subdivision (4) of this subsection. 2h. Identify potential facilities eligible for surplus disposal under 3G.S. 143-341.3. 4-(2) Development of performance ma nagement system. – The Department of 5+(2) Development of performance management system. – The Department of 5Administration shall establish a performance management system to measure 6-the State's achievement of the priorities and objectives set forth in plans 7-developed pursuant to subdivision (1) of this section. The system sha ll set 8+the State 's achievement of the priorities and objectives set forth in plans 7+developed pursuant to subdivision (1) of this section. The system shall set 8measurable goals and deadlines and shall be designed to focus on optimization 9-and efficiency of the State's portfolio of real property. The system shall be 10+and efficiency of the State 's portfolio of real property. The system shall be 10used to report the information required by sub -sub-subdivision (7)c.1. of this 11section. 12(3) Development of utilization measures. – The Department of Administration 13@@ -123,10 +127,10 @@utilization. 22d. Developed in consultation with State agencies. 23(4) Development and enforcement of space planning standards. – The Department 24-of Administration sh all develop and distribute to State agencies space 25+of Administration shall develop and distribute to State agencies space 25planning standards to be used to determine workspace size and to govern the 26use of shared space. The standards developed pursuant to this subdivision 27-shall be based on the Federal GSA's Office of Real Prop erty Management 28+shall be based on the Federal GSA 's Office of Real Property Management 28Performance Measurement Division Workspace Utilization and Allocation 29Benchmark report unless the Department identifies another efficient industry 30standard upon which to base the space planning standards developed pursuant 31@@ -142,7 +146,7 @@(5) Updating of real property inventories. – The Department of Administration 41shall do all of the following to ensure that the information contained in the 42inventories maintained pursuant to G.S. 143-341(4) is kept current: 43-a. Immediately incorporate infor mation received from State agencies 44+a. Immediately incorporate information received from State agencies 44pursuant to subdivision (b)(1) of this section into the inventories. 45b. Immediately notify State agencies when the incorporation of 46information into the inventories required by sub-subdivision a. of this 47@@ -151,8 +155,8 @@Department of Administration shall establish a surplus real property disposal 50system that limits the duration that unneeded property is retained by the State. 51General Assembly Of North Carolina Session 2025-Page 4 Senate Bill 465-First Edition-As part of the system, the Department shall adopt rules defining surplus 1+Page 4 DRS15186-MQ-15+As part of the system, the Department shall adopt rules defining surplus 1State-owned real property and establishing a system for continuously 2identifying and disposing of that property, subject to the approvals required 3by Chapter 146 of the General Statutes, which shall take into consideration all 4@@ -160,17 +164,17 @@a. The value each facility or parcel of land brings to the performance of 6the mission of the State or State agency and the fulfillment of its goals 7and objectives. 8-b. A general measure of the facility's c ondition calculated as a ratio of 9+b. A general measure of the facility's condition calculated as a ratio of 9repair needs to replacement value. 10c. The degree to which the property is utilized, measured in accordance 11with the procedures developed pursuant to subdivision (3) of this 12subsection. 13-d. The extent to which the property m eets the purpose for which it was 14+d. The extent to which the property meets the purpose for which it was 14intended. 15e. The extent to which the State or State agency is likely to need to 16continue to provide the service or function currently provided at the 17property. 18-f. Consideration of the best and most cost -effective manner in which 19+f. Consideration of the best and most cost -effective manner in which 19these future needs can be met. 20(7) Reporting. – The Department of Administration shall make the following 21reports: 22@@ -194,19 +198,19 @@c. No later than April 1, 2024, and each year thereafter, the Department 40shall report to the Joint Legislative Commission on Governmental 41Operations, Joint Legislative Oversight Committee on Capital 42-Improvements, Joint Legislative Oversight Commit tee on General 43-Government, and Fiscal Research Division on the State's portfolio of 44+Improvements, Joint Legislative Oversight Committee on General 43+Government, and Fiscal Research Division on the State 's portfolio of 44real property. This report shall include at least the following 45information: 461. The status of achieving the goals and objectives set forth in the 47most recent plan developed pursuant to subdivision (1) of this 48section. 49General Assembly Of North Carolina Session 2025-Senate Bill 465-First Edition Page 5+DRS15186-MQ-15 Page 52. Trends in the inventory of leased and owned buildings and real 1property, including changes in value, square footage, and 2operation and maintenance costs. 3-3. Trends in the inventory of State -owned land, inclu ding 4+3. Trends in the inventory of State -owned land, including 4changes in acreage and value. 54. Allocation of leased and owned space by facility type, by 6agency, and by county. 7@@ -226,7 +230,7 @@IV. Properties reallocated between State agencies. 218. A list of all audits performed that year pursuant to 22sub-subdivision a. of subdivision (4) of this subsection, a 23-summary of the findings of each audit, and the agency's plans 24+summary of the findings of each audit, and the agency 's plans 24for addressing the findings of the audit. 25(b) Duties of Other State Agencies. – Each State agency shall have the following powers 26and duties: 27@@ -236,15 +240,15 @@G.S. 143-341(4)b.1. through 15. for each building, facility, or space in any 31building or facility that the agency occupies. This shall be in addition to any 32reports required pursuant to G.S. 143-341(4)h. 33-(2) Verification of information in real property inven tories. – Within 60 days of 34+(2) Verification of information in real property inventories. – Within 60 days of 34receiving notice from the Department of Administration pursuant to 35sub-subdivision (a)(5)b. of this section, each State agency shall report to the 36Department one of the following, as applicable: 37-a. That the information submitted to the Department of Administration 38+a. That the information submitted to the Department of Administration 38pursuant to subdivision (1) of this subsection is accurately reflected in 39the real property inventories. 40b. A list of discrepancies between the information submitted to the 41-Department of Administration pursuant to subdi vision (1) of this 42+Department of Administration pursuant to subdivision (1) of this 42subsection and the corresponding information in the real property 43inventories. 44(3) Auditor may audit submissions. – The State Auditor may audit submissions 45@@ -252,15 +256,15 @@subsection and may recover any costs incurred in performing such an audit 47from the State Land Fund, in accordance with G.S. 146-72. 48(4) Development of five -year property management plan. – No later than 49-November 1, 2022, and every five years thereafter, each S tate agency shall 50+November 1, 2022, and every five years thereafter, each State agency shall 50develop a five-year real property management plan and shall submit the plan 51General Assembly Of North Carolina Session 2025-Page 6 Senate Bill 465-First Edition+Page 6 DRS15186-MQ-15to the Department of Administration for review. Each plan shall do all of the 1following: 2a. Identify the type, quantity, and location of facilities and spaces 3required to fully support agency operations. 4-b. Include an in -depth analysis of existing facilities' locations, 5+b. Include an in -depth analysis of existing facilities ' locations, 5capabilities, utilization, and condition. 6c. Establish agency-specific strategic priorities and objectives for each 7asset under its control. 8@@ -269,7 +273,7 @@property oversight of the Department of Administration under G.S. 143-341. A State agency that 11is entirely exempt from the real property oversight of the Department of Administration shall not 12be required to submit any information pursuant to subsection (b) of this section. A State agency 13-that is partially exempt from the real pro perty oversight of the Department of Administration 14+that is partially exempt from the real property oversight of the Department of Administration 14shall submit information pursuant to subsection (b) of this section for those properties that are 15subject to the real property oversight of the Department of Administration." 16SECTION 3. Part 1 of Article 36 of Chapter 143 of the General Statutes is amended 17@@ -290,7 +294,7 @@(3) The degree to which the property is utilized, measured in accordance with the 32procedures developed pursuant to G.S. 143-341.2(a)(3). 33(4) The extent to which the property meets the purpose for which it was intended. 34-(5) The extent to which the State or State agency is likely to n eed to continue to 35+(5) The extent to which the State or State agency is likely to need to continue to 35provide the service or function currently provided at the property. 36(6) Consideration of the best and most cost-effective manner in which these future 37needs can be met. 38@@ -300,16 +304,16 @@the Department of Administration shall, subject to the approvals required under Chapter 146 of 42the General Statutes , dispose of the surplus real property by sale. If the Department of 43Administration is unable to dispose of the real property by sale for a period of six months, the 44-Department shall dispose of the property by auction or by transfer of titl e to a city or county in 45+Department shall dispose of the property by auction or by transfer of title to a city or county in 45this State, provided that the city or county presents evidence satisfactory to the Department of an 46economic development use for the property. 47(c) Proceeds of Sale. – Notwithstanding G.S. 146-15, G.S. 146-30, or any other provision 48of law, the gross proceeds of the sale of surplus real property under this section shall be handled 49in accordance with the following priority: 50General Assembly Of North Carolina Session 2025-Senate Bill 465-First Edition Page 7+DRS15186-MQ-15 Page 7(1) First, by subtracting any expenses incurred incident to the sale as may be 1-allowed under rules and regulatio ns adopted by the Governor and approved 2+allowed under rules and regulations adopted by the Governor and approved 2by the Council of State. 3(2) Second, in accordance with the provisions of any trust or other instrument of 4title whereby title to real property was acquired. 5
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