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Bill Summary · SB 802

Summary of SB 802 (Session 2025, North Carolina) — Agency Vacant Property

Purpose and Intent

  • Establish a formal framework for proactively managing, cataloging, reporting, and disposing of certain vacant or surplus state property.
  • Create a surplus real property disposal system to minimize holding costs and maximize value/use of state facilities and land.

Key Provisions

Inventory and Data Enhancements (Sections 1 and 2)

  • The Department of Administration (DOA) must maintain comprehensive inventories of:
    • State land (location, including latitude/longitude, acreage, title source, current use, and the allocating agency).
    • State buildings (location, purpose, occupant agency or vacancy status, ownership, size, condition, operating and maintenance costs, potential liabilities, usable workspaces, occupancy by agency, and maintenance records).
  • The building inventory must include detailed data elements such as floor plans, condition assessments, annual operating/maintenance costs, total potential liability, parking, and employee facilities.

Proactive Real Property Portfolio Management (Section 2)

  • DOA must develop and implement a State facilities plan every five years (initial deadline referenced as 2023, with subsequent cycles). The plan should:

    • Identify required facilities/spaces to support state operations.
    • Analyze existing facilities by location, capability, utilization, occupancy, and condition.
    • Set strategic priorities to maximize facility utilization and minimize costs.
    • Consider input from five-year agency real property management plans.
    • Propose mechanisms to reallocate space to reduce new purchases/leasing.
    • Recommend disposition, consolidation, or relocation of facilities.
    • Document changes to space planning standards.
    • Identify facilities eligible for surplus disposal.

  • DOA must also establish a surplus property identification and disposal system with rules defining surplus property and procedures for continuous identification and disposal, subject to Chapter 146 approvals. Criteria to guide disposal include:

    • Value to state mission and goals.
    • Condition (repair needs vs replacement value).
    • Utilization level.
    • Alignment with original purpose.
    • Likelihood of continued service needs and cost-effectiveness.

Disposal of Surplus Property (New Statute: § 143-341.3)

  • Creation of a dedicated surplus property disposal system aimed at limiting how long unneeded or vacant property remains held by the State.
  • Disposal method:
    • Properties deemed surplus are to be disposed of by sale, subject to Chapter 146 approvals.
    • If sale is not feasible within six months, disposal by auction or transfer to a city/county for economic development use (upon satisfying state requirements).
  • Proceeds Allocation (priority order):
    1. Pay sale-related expenses allowed by rules.
    2. Apply to any trust or instrument tied to how title was acquired.
    3. Apply per any other General Assembly act.
    4. Remaining proceeds distributed as:
      • 50% to the General Fund.
      • 50% to the DOA for repair/renovation projects per applicable statutes.

Reporting and Funding (Sections 4–6)

  • Within three months of enactment, DOA must report vacant building data (as amended in the act) to the Joint Legislative Oversight Committee on General Government and the Fiscal Research Division.
  • An annual recurring appropriation of $100,000 starting in the 2026-2027 fiscal year is provided to DOA to administer the surplus disposal system.

Effective Date

  • The act becomes effective July 1, 2026.

Who Is Affected

  • State agencies that occupy or use state-owned or state-leased properties.
  • Department of Administration (DOA) as the lead agency for inventory, planning, surplus identification, disposal, and related rules.
  • The General Fund and potential recipients of surplus property proceeds (including the General Fund and DOA for repairs).
  • Local governments or cities/counties may be involved as purchasers or recipients in surplus dispositions if transfer is pursued.

Procedural and Timeline Aspects

  • Inventory data collection and building/building condition data are to be established and reported; a three-month deadline for the vacancy data report post-enactment.
  • A five-year cycle for the comprehensive state facilities plan (initial plan deadlines reference 2023; subsequent cycles every five years).
  • Six-month window for disposing surplus property via sale; if not sold, alternatives include auction or transfer to local governments for economic development purposes.
  • Annual reporting requirements and ongoing appropriation to support administration of the surplus system.

Potential Impacts and Considerations

  • Improved transparency and accuracy of the state’s real property holdings, including vacancy status and condition.
  • Potential reductions in operating costs through better space utilization and accelerated disposal of surplus or vacant properties.
  • Streamlined processes for identifying surplus assets and executing disposition, with clear financial flows for proceeds.
  • Increased oversight and data-driven decision-making for future acquisitions, consolidations, or relocations of state agencies.

If you’d like, I can provide a section-by-section comparison with current statutes or draft a one-page briefing for policymakers.

Compiled from official sources — confirm details with the bill’s official record.

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