Agency Vacant Property.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 465

Short 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*
A BILL TO BE ENTITLED 1
AN ACT TO REQUIRE TH E DEPARTMENT OF ADMI NISTRATION TO ASSESS , 2
CATALOG, REPORT, AND DISPOSE OF CERTAIN VACANT STATE PROPERTY. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 143-341 reads as rewritten: 5
"§ 143-341. Powers and duties of Department. 6
The Department of Administration has the following powers and duties: 7
(1) Repealed by Session Laws 1979, 2nd Session, c. 1137, s. 38. 8
(2) Purchase and Contract: 9
a. To exercise those powers and perform those duties which were, at the 10
time of the ratification of this Article, conferred by statute upon the 11
former Division of Purchase and Contract. 12
… 13
(4) Real Property Control: 14
a. 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
inventory shall show the location, including the latitude and longitude 17
of the center of the property, acreage, description, source of title and 18
current use of all land (including swamplands or marshlands) owned 19
by the State or by any State agency, and the agency to which each tract 20
is currently allocated. Surveys may be made where necessary to obtain 21
information for the purposes of this inventory. Accurate plats or maps 22
of all such land may be prepared, or copies obtained where such maps 23
or plats are available. 24
b. To prepare and keep current a complete and accurate database of all 25
buildings owned or leased (in whole or in part) by the State or by any 26
State agency. This database shall serve as the State inventory and shall 27
include all of the following information and floor plans of every such 28
building shall be prepared or copies obtained where such floor plans 29
are available, where needed for use in the allocation of space therein: 30
1. The building's location, including the latitude and longitude of 31
the center of the building. 32
2. A description of the operations supported by the building. 33
3. The agency or agencies that occupy the building.The current 34
occupant of the building or, if the building is vacant, the current 35
period of vacancy. 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 465-First Edition
4. Ownership information for the building. 1
5. The size of the building in terms of both gross and usable 2
square feet. 3
6. A description of the building. 4
7. The building's condition assessment, including the estimated 5
cost to make needed repairs and renovations as well as the date 6
that the last condition assessment was completed. 7
8. The building's annual operating costs. 8
9. The building's annual maintenance costs. 9
9a. The total potential liability to the State for the building and the 10
land where the building is situated. 11
10. The number of usable workspaces contained in the building. 12
11. The number of full -time equivalent positions assigned to the 13
building by each agency occupant. 14
12. The amount of the building that is utilized, measured in 15
accordance with the procedures developed pursuant to 16
G.S. 143-341.2(a)(3). 17
13. Maintenance record, including replacement and maintenance 18
schedules for all major mechanical systems. 19
14. Parking and employee facilities. 20
15. Any other information deemed relevant by the Depa rtment of 21
Administration. 22
…." 23
SECTION 2. G.S. 143-341.2 reads as rewritten: 24
"§ 143 -341.2. Proactive management of State -owned and State -leased real property 25
portfolio. 26
(a) Duties of the Department of Administration. – The Department of Administration 27
shall have the following powers and duties: 28
(1) Development of comprehensive State facilities plan. – No later than April 1, 29
2023, and every five years thereafter, the Department of Administration shall 30
develop and implement a plan to comprehensively manage, acquire, and 31
dispose of the facilities and spaces required to fully support State government 32
operations. The plan shall do all of the following: 33
a. Identify the type, quantity, and location of facilities and spaces 34
required to fully support State government operations. 35
b. Include an in -depth analysis of existing State -owned facilities' 36
locations, capability, utilization, occupancy status, and condition. 37
c. Establish strategic priorities and objectives that allow the Department 38
of Administration to manage the performance of the State's portfolio 39
of real property in a way that maximizes the utilization of State-owned 40
facilities and minimizes operating and maintenance costs. 41
d. Take into consideration the information provided to the Department in 42
five-year real property management plans submitted by State agencies 43
pursuant to subdivision (b)(4) of this section. 44
e. Provide a mechanism for allocating available facilities or space to 45
State agencies that need it in a manner that reduces the need to acquire 46
new space through purchase, lease, or other means. 47
f. Provide recommendations for disposing of existing State property and 48
facilities, consolidating operations among existing facilities, and 49
relocating State agencies from leased facilities to State -owned 50
facilities. 51
General Assembly Of North Carolina Session 2025
Senate Bill 465-First Edition Page 3
g. Describe all changes made to space planning standards developed and 1
distributed as provided in subdivision (4) of this subsection. 2
h. Identify potential facilities eligible for surplus disposal under 3
G.S. 143-341.3. 4
(2) Development of performance ma nagement system. – The Department of 5
Administration 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
measurable 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
used to report the information required by sub -sub-subdivision (7)c.1. of this 11
section. 12
(3) Development of utilization measures. – The Department of Administration 13
shall develop and distribute to State agencies procedures to be used to measure 14
the utilization of State-owned and State-leased real property. The procedures 15
developed pursuant to this subdivision shall be all of the following: 16
a. Based on the percentage of usable square feet in a facility that is used 17
for State agency functions or for storage, or on other trade industry 18
standards of utilization measurement. 19
b. Adjusted as appropriate for each facility type. 20
c. Designed to yield an easily understandable index or ratio of facility 21
utilization. 22
d. 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
planning standards to be used to determine workspace size and to govern the 26
use 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
Performance Measurement Division Workspace Utilization and Allocation 29
Benchmark report unless the Department identifies another efficient industry 30
standard upon which to base the space planning standards developed pursuant 31
to this subdivision. The Department shall: 32
a. Annually perform audits of a portion of State agencies to determine 33
each agency's adherence to the space planning standards developed 34
pursuant to this subdivision and shall send formal letters of 35
admonishment to any agency that fails to justify, in the sole discretion 36
of the Department, any deviation from those standards. 37
b. Update the space planning standards developed pursuant to this 38
subdivision at least once every five years and distribute those changes 39
to State agencies. 40
(5) Updating of real property inventories. – The Department of Administration 41
shall do all of the following to ensure that the information contained in the 42
inventories maintained pursuant to G.S. 143-341(4) is kept current: 43
a. Immediately incorporate infor mation received from State agencies 44
pursuant to subdivision (b)(1) of this section into the inventories. 45
b. Immediately notify State agencies when the incorporation of 46
information into the inventories required by sub-subdivision a. of this 47
subdivision is complete. 48
(6) Development of surplus property identification and disposal system. – The 49
Department of Administration shall establish a surplus real property disposal 50
system that limits the duration that unneeded property is retained by the State. 51
General 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
State-owned real property and establishing a system for continuously 2
identifying and disposing of that property, subject to the approvals required 3
by Chapter 146 of the General Statutes, which shall take into consideration all 4
of the following: 5
a. The value each facility or parcel of land brings to the performance of 6
the mission of the State or State agency and the fulfillment of its goals 7
and objectives. 8
b. A general measure of the facility's c ondition calculated as a ratio of 9
repair needs to replacement value. 10
c. The degree to which the property is utilized, measured in accordance 11
with the procedures developed pursuant to subdivision (3) of this 12
subsection. 13
d. The extent to which the property m eets the purpose for which it was 14
intended. 15
e. The extent to which the State or State agency is likely to need to 16
continue to provide the service or function currently provided at the 17
property. 18
f. Consideration of the best and most cost -effective manner in which 19
these future needs can be met. 20
(7) Reporting. – The Department of Administration shall make the following 21
reports: 22
a. No later than April 1, 2023, and every five years thereafter, the 23
Department shall report the following to the Joint Legislative 24
Commission on Governmental Operations and Joint Legislative 25
Oversight Committee on Capital Improvements, Joint Legislative 26
Oversight Committee on General Government, and Fiscal Research 27
Division: 28
1. The plan developed pursuant to subdivision (1) of this 29
subsection. 30
2. A summary of the performance measurement procedures 31
developed pursuant to subdivision (2) of this subsection. 32
b. If any State agency fails to submit the information required by 33
subdivision (b)(1) of this section, the Department shall report the 34
failure to the chairs of the Joint Legislative Commission on 35
Governmental Operations, the chairs of the Joint Legislative Oversight 36
Committee on Capital Improvements, and the chairs of the Joint 37
Legislative Oversight Committee on General Government within 30 38
days. 39
c. No later than April 1, 2024, and each year thereafter, the Department 40
shall report to the Joint Legislative Commission on Governmental 41
Operations, 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
real property. This report shall include at least the following 45
information: 46
1. The status of achieving the goals and objectives set forth in the 47
most recent plan developed pursuant to subdivision (1) of this 48
section. 49
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Senate Bill 465-First Edition Page 5
2. Trends in the inventory of leased and owned buildings and real 1
property, including changes in value, square footage, and 2
operation and maintenance costs. 3
3. Trends in the inventory of State -owned land, inclu ding 4
changes in acreage and value. 5
4. Allocation of leased and owned space by facility type, by 6
agency, and by county. 7
5. Benchmarks for comparable private sector leases across the 8
regions of the State for both rural and urban locations, as 9
appropriate. 10
6. An analysis of utilization targets and a list of owned and leased 11
real property identified as unused or underutilized. 12
7. A list of the following information for the period beginning 13
after submission of the most recent report pursuant to this 14
sub-subdivision: 15
I. State-owned properties identified as unused or 16
underutilized. 17
II. State-owned properties sold. 18
III. State-owned properties in the process of being disposed 19
of. 20
IV. Properties reallocated between State agencies. 21
8. A list of all audits performed that year pursuant to 22
sub-subdivision a. of subdivision (4) of this subsection, a 23
summary of the findings of each audit, and the agency's plans 24
for addressing the findings of the audit. 25
(b) Duties of Other State Agencies. – Each State agency shall have the following powers 26
and duties: 27
(1) Collection and reporting of information on property use. – No later than 28
November 1, 2022, and each year thereafter, each State agency shall submit 29
to the Department of Administration all of the information described in 30
G.S. 143-341(4)b.1. through 15. for each building, facility, or space in any 31
building or facility that the agency occupies. This shall be in addition to any 32
reports required pursuant to G.S. 143-341(4)h. 33
(2) Verification of information in real property inven tories. – Within 60 days of 34
receiving notice from the Department of Administration pursuant to 35
sub-subdivision (a)(5)b. of this section, each State agency shall report to the 36
Department one of the following, as applicable: 37
a. That the information submitted to the Department of Administration 38
pursuant to subdivision (1) of this subsection is accurately reflected in 39
the real property inventories. 40
b. A list of discrepancies between the information submitted to the 41
Department of Administration pursuant to subdi vision (1) of this 42
subsection and the corresponding information in the real property 43
inventories. 44
(3) Auditor may audit submissions. – The State Auditor may audit submissions 45
made to the Department of Administration pursuant to subdivision (1) of this 46
subsection and may recover any costs incurred in performing such an audit 47
from 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
develop a five-year real property management plan and shall submit the plan 51
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 465-First Edition
to the Department of Administration for review. Each plan shall do all of the 1
following: 2
a. Identify the type, quantity, and location of facilities and spaces 3
required to fully support agency operations. 4
b. Include an in -depth analysis of existing facilities' locations, 5
capabilities, utilization, and condition. 6
c. Establish agency-specific strategic priorities and objectives for each 7
asset under its control. 8
(c) Exception for Property Not Subject to Department of Administration Oversight. – 9
None of the requirements of this section shall apply to facilities that are not subject to the real 10
property oversight of the Department of Administration under G.S. 143-341. A State agency that 11
is entirely exempt from the real property oversight of the Department of Administration shall not 12
be 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
shall submit information pursuant to subsection (b) of this section for those properties that are 15
subject to the real property oversight of the Department of Administration." 16
SECTION 3. Part 1 of Article 36 of Chapter 143 of the General Statutes is amended 17
by adding a new section to read: 18
"§ 143-341.3. Disposal of surplus real property. 19
(a) Surplus Real Property Disposal. – The Department of Administration shall establish 20
a surplus real property disposal system that limits the duration that unneeded or vacant property 21
is retained by the State. As part of the system, the Department shall (i) adopt rules in accordance 22
with this section, including defining surplus State-owned real property, and (ii) establish a system 23
for continuously identifying and disposing of that property, subject to the approvals required 24
under Chapter 146 of the General Statutes, which shall take into consideration all of the 25
following: 26
(1) The value each facility or parcel of land brings to the performance of the 27
mission of the State or State agency and the fulfillment of its goals and 28
objectives. 29
(2) A general measure of the facility 's condition calculated as a ratio of repair 30
needs to replacement value. 31
(3) The degree to which the property is utilized, measured in accordance with the 32
procedures 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
provide the service or function currently provided at the property. 36
(6) Consideration of the best and most cost-effective manner in which these future 37
needs can be met. 38
(7) Whether the property has been vacant for one year or longer. 39
(8) An assessment of private or public interest in the property. 40
(b) Method for Disposal. – For properties identified as surplus pursuant to this section , 41
the Department of Administration shall, subject to the approvals required under Chapter 146 of 42
the General Statutes , dispose of the surplus real property by sale. If the Department of 43
Administration 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
this State, provided that the city or county presents evidence satisfactory to the Department of an 46
economic development use for the property. 47
(c) Proceeds of Sale. – Notwithstanding G.S. 146-15, G.S. 146-30, or any other provision 48
of law, the gross proceeds of the sale of surplus real property under this section shall be handled 49
in accordance with the following priority: 50
General Assembly Of North Carolina Session 2025
Senate Bill 465-First Edition 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
by the Council of State. 3
(2) Second, in accordance with the provisions of any trust or other instrument of 4
title whereby title to real property was acquired. 5
(3) Third, as provided by any other act of the General Assembly. 6
(4) Fourth, by depositing the remaining proceeds in accordance with the 7
following: 8
a. Fifty percent (50%) to the General Fund. 9
b. Fifty percent (50%) to the Department of Administration to be used 10
for repair and renovation projects as provided in G.S. 143C-8-13." 11
SECTION 4. No later than three months after the effective date of this section, the 12
Department of Administration shall submit a report to the Joint Legislative Oversight Committee 13
on General Government and the Fiscal Research Division with the vacant building data required 14
under G.S. 143-341, as enacted in this act. 15
SECTION 5. This act becomes effective July 1, 2025. 16