A last-minute, surprise addition to the state budget adjustment bill recently approved by the General Assembly and signed by Gov. Mike Easley creates a commission that will sell and lease property owned by the state of North Carolina.
The Commission on State Property will be created within the state Department of Administration. The commission, as specified by the new law, will identify state-owned real property that is both surplus and “suitable” for sale on the private market or for lease. The commission also will make recommendations about the disposition of state property. In making its recommendations, the new agency will consult with real estate salespersons, brokers, and appraisers.
The commission will be composed of 16 members: eight to be recommended by the speaker of the House, and eight to be recommended by the president pro tempore of the Senate. The full legislature will decide whether to approve the recommendations. The law excludes members of the legislature from membership on the commission. Eight of the commission’s members will serve one-year terms, eight of them will serve two-year terms, and subsequent terms of the members will be two years.
The law directs that the commission will meet at least once a fiscal quarter and other times as called by its cochairmen. A majority of the commission will constitute a quorum for the transaction of business. A vote by the majority is required for action taken by the group.
The addition of the commission to the budget bill was a surprise, Rep. Paul (Skip) Stam, R-Wake County, said. “There was no discussion or debate on the floor of the House. I am not sure if this was a good thing. I need to know more about it.” He said the section creating the commission was not included in either the House or Senate versions of their budget bills.
The N.C. Association of Realtors, likewise, did not mention the commission in a summary of legislative measures posted on the Realtors’ website.
Real-estate salespersons, brokers, and “members of the public” may make recommendations to the commission, but the salespersons and brokers are limited to a maximum of five referrals, the law says. The commission will report its recommendations to the Department of Administration, the governor, and the Joint Legislative Commission on Governmental Operations. The department will have 60 days to respond to the commission’s recommendations. If the department does not concur, the commission is to recommend the sale or leaseback of the property to the governor and the Council of State. The commission will complete the transactions if the governor and Council of State approve the sale.
Real estate salespersons or brokers whose recommendations were approved for sale will be entitled to brokerage fees, according to the legislation. To receive the fees, the sale must meet the following conditions: (1) agents must be licensed by the state Real Estate Commission; (2) the transaction closes; (3) the brokerage fees do not exceed those customary in the industry and are consistent with the rules adopted by the commission.
The law appropriates $200,000 in fiscal 2004-05 to establish the commission.
After its members are appointed, the commission will meet to establish its guidelines and a disposal system. The Department of Administration is to consult with the Office of State Budget and Management, the Department of Transportation, the University of North Carolina, and “all other affected state departments, agencies and institutions” to develop and implement the disposal system.
“The purpose of the system is to establish a uniform real property disposal system that will continuously identify state-owned surplus real property, evaluate that property, and dispose of that property as appropriate,” the law says.
Richard Wagner is the editor of Carolina Journal.