§ 143-48. State policy; cooperation in promoting the use of small contractors, minority contractors, physically handicapped contractors, and women contractors; purpose; required annual reports.
Article 3.
Purchases and Contracts.
§ 143‑48. State policy;cooperation in promoting the use of small contractors, minority contractors,physically handicapped contractors, and women contractors; purpose; requiredannual reports.
(a) Policy. It is thepolicy of this State to encourage and promote the use of small contractors,minority contractors, physically handicapped contractors, and women contractorsin State purchasing of goods and services. All State agencies, institutions andpolitical subdivisions shall cooperate with the Department of Administrationand all other State agencies, institutions and political subdivisions inefforts to encourage the use of small contractors, minority contractors,physically handicapped contractors, and women contractors in achieving thepurpose of this Article, which is to provide for the effective and economicalacquisition, management and disposition of goods and services by and throughthe Department of Administration.
(b) Reporting. Everygovernmental entity required by statute to use the services of the Departmentof Administration in the purchase of goods and services, every local schooladministrative unit, and every private, nonprofit corporation other than aninstitution of higher education or a hospital that receives an appropriation offive hundred thousand dollars ($500,000) or more during a fiscal year from theGeneral Assembly shall report to the department of Administration annually onwhat percentage of its contract purchases of goods and services, through termcontracts and open‑market contracts, were from minority‑ownedbusinesses, what percentage from female‑owned businesses, what percentagefrom disabled‑owned businesses, what percentage from disabled businessenterprises and what percentage from nonprofit work centers for the blind andthe severely disabled. The same governmental entities shall include in theirreports what percentages of the contract bids for such purchases were from suchbusinesses. The Department of Administration shall provide instructions to thereporting entities concerning the manner of reporting and the definitions ofthe businesses referred to in this act, provided that, for the purposes of thisact:
(1) Except as providedin subdivision (1a) of this subsection, a business in one of the categoriesabove means one:
a. In which at leastfifty‑one percent (51%) of the business, or of the stock in the case of acorporation, is owned by one or more persons in the category; and
b. Of which themanagement and daily business operations are controlled by one or more personsin the category who own it.
(1a) A "disabledbusiness enterprise" means a nonprofit entity whose main purpose is toprovide ongoing habilitation, rehabilitation, independent living, andcompetitive employment for persons who are handicapped through supportedemployment sites or business operated to provide training and employment andcompetitive wages.
(1b) A "nonprofitwork center for the blind and the severely disabled" means an agency:
a. Organized under thelaws of the United States or this State, operated in the interest of the blindand the severely disabled, the net income of which agency does not inure inwhole or in part to the benefit of any shareholder or other individual;
b. In compliance withany applicable health and safety standard prescribed by the United StatesSecretary of Labor; and
c. In the production ofall commodities or provision of services, employs during the current fiscalyear severely handicapped individuals for (i) a minimum of seventy‑fivepercent (75%) of the hours of direct labor required for the production ofcommodities or provision of services, or (ii) in accordance with the percentageof direct labor required under the terms and conditions of Public Law 92‑28(41 U.S.C. § 46, et seq.) for the production of commodities or provision ofservices, whichever is less.
(2) A female or adisabled person is not a minority, unless the female or disabled person is alsoa member of one of the minority groups described in G.S. 143‑128(2)a.through d.
(3) A disabled personmeans a person with a handicapping condition as defined in G.S. 168‑1 orG.S. 168A‑3.
(c) The Department ofAdministration shall compile information on small and medium‑sizedbusiness participation in State contracts subject to this Article and reportthe information as provided in subsection (d) of this section. The report shallanalyze (i) contract awards by business size category, (ii) historical trendsin small and medium‑sized business participation in these contracts, and(iii) to the extent feasible, participation by small and medium‑sizedbusinesses in the State procurement process as dealers, service companies, andother indirect forms of participation. The Department may require reports oncontracting by business size in the same manner as reports are required undersubsection (b) of this section.
(d) The Department ofAdministration shall collect and compile the data described in this section andreport it annually to the General Assembly.
(d1) Repealed by SessionLaws 2007‑392, s. 1, effective October 1, 2007.
(e) In seekingcontracts with the State, a disabled business enterprise must provideassurances to the Secretary of Administration that the payments that would bereceived from the State under these contracts are directed to the training andemployment of and payment of competitive wages to handicapped employees. (1931, c. 261, s. 1; c. 396;1957, c. 269, s. 3; 1971, c. 587, s. 1; 1975, c. 879, s. 46; 1983, c. 692, s.2; 1989 (Reg. Sess., 1990), c. 1051, s. 1; 1993, c. 252, s. 1; 1995, c. 265, s.2; 1999‑20, s. 1; 1999‑407, s. 1; 2003‑147, s. 6; 2004‑203,s. 72(b); 2005‑270, s. 1; 2007‑392, s. 1.)