North Carolina § 143-59 - Preference given to North Carolina products and citizens, and articles manufactured by State agencies; reciprocal preferences.

§ 143-59. Preference given to North Carolina products and citizens, and articles manufactured by State agencies; reciprocal preferences.

Preference. - The Secretary of Administration and any State agency authorized to purchase foodstuff or other products, shall, in the purchase of or in the contracting for foods, supplies, materials, equipment, printing or services give preference as far as may be practicable to such products or services manufactured or produced in North Carolina or furnished by or through citizens of North Carolina: Provided, however, that in giving such preference no sacrifice or loss in price or quality shall be permitted; and provided further, that preference in all cases shall be given to surplus products or articles produced and manufactured by other State departments, institutions, or agencies which are available for distribution. Reciprocal Preference. - For the purpose only of determining the low bidder on all contracts for equipment, materials, supplies, and services valued over twenty-five thousand dollars ($25,000), a percent of increase shall be added to a bid of a nonresident bidder that is equal to the percent of increase, if any, that the state in which the bidder is a resident adds to bids from bidders who do not reside in that state. Any amount due under a contract awarded to a nonresident bidder shall not be increased by the amount of the increase added by this subsection. On or before January 1 of each year, the Secretary of Administration shall electronically publish a list of states that give preference to in-State bidders and the amount of the percent increase added to out-of-state bids. All departments, institutions, and agencies of the State shall use this list when evaluating bids. If the reciprocal preference causes the nonresident bidder to no longer be the lowest bidder, the Secretary of Administration may waive the reciprocal preference. In determining whether to waive the reciprocal preference, the Secretary of Administration shall consider factors that include competition, price, product origination, and available resources. Definitions. - The following definitions apply in this section: Resident bidder. - A bidder that has paid unemployment taxes or income taxes in this State and whose principal place of business is located in this State. Nonresident bidder. - A bidder that is not a resident bidder as defined in subdivision (1) of this subsection. Principal place of business. - The principal place from which the trade or business of the bidder is directed or managed. Exemptions. - Subsection (b) of this section shall not apply to contracts entered into under G.S. 143-53(a)(5) or G.S. 143-57. When a contract is awarded by the Secretary using the provisions of subsection (b) of this section, a report of the nature of the contract, the bids received, and the award to the successful bidder shall be posted on the Internet as soon as practicable. Resident Bidder Notification. - When the Secretary puts a contract up for competitive bidding, the Secretary shall endeavor to provide notice to all resident bidders who have expressed an interest in bidding on contracts of that nature. The Secretary may opt to provide notice under this section by electronic means only. History (1931, c. 261, s. 10; 1933, c. 441, s. 2; 1957, c. 269, s. 3; 1971, c. 587, s. 1; 1975, c. 879, s. 46; 2001-240, s. 1; 2005-213, ss. 1, 3; 2013-234, s. 9.) Editor's Note. - Session Laws 2001-240, s. 2, provides: "The Secretary of Administration may adopt temporary rules to implement this act." Session Laws 2001-240, s. 1, as amended by Session Laws 2005-213, s. 1, effective January 1, 2002, added "reciprocal preferences" to the section catchline; added the subsection (a) designation; added "Preference. - " at the beginning of subsection (a); and added subsections (b) through (e). Session Laws 2013-234, s. 11, provides: "The Department of Administration shall provide an individualized notice to the following State entities to ensure that the entities are aware of how the statutory amendments made in S.L. 2010-194, Section 15 of S.L. 2011-326, and this act apply to them: "(1) The North Carolina State Lottery Commission, which is subject to G.S. 18C-150 . "(2) The Commissioner of Banks, who is subject to G.S. 53-320(d) , 53-326(d), 53-391, and 53-401. "(3) The Commissioner of Insurance, who is subject to G.S. 53-401 , 58-33-30(e)(4) and (5), 58-33-125(e), 58-33-130(a), and 58-71-40(d). "(4) The Global TransPark Authority, which is subject to G.S. 63A-24 . The Secretary of Transportation shall be copied on the notice sent to the Global TransPark Authority. "(5) The North Carolina State Bar Council, which is subject to G.S. 84-23(d) . "(6) The North Carolina Board for Licensing of Geologists, which is subject to G.S. 89E-5(e) . "(7) The North Carolina Board for Licensing of Soil Scientists, which is subject to G.S. 89F-5(d) . "(8) The constituent institutions of The University of North Carolina, which are subject to G.S. 114-8.3(b) . For notification under this subdivision, the Department of Administration may provide The University of North Carolina system a notification to distribute to all of its constituent institutions. If the Department of Administration does so, The University of North Carolina system shall distribute those notifications to the system's constituent institutions. "(9) The North Carolina Center for Applied Textile Technology, which is subject to G.S. 115D-67.4 . "(10) The North Carolina State Health Plan for Teachers and State Employees, which is subject to G.S. 135-48.33(b) . "(11) The Department of Transportation, which is subject to G.S. 136-28.1(h) and G.S. 143-134(b) . "(12) The North Carolina Turnpike Authority, which is subject to G.S. 136-89.194(g)(1) . The Secretary of Transportation shall be copied on the notice sent to the Turnpike Authority. "(13) The Department of Health and Human Services, which is subject to G.S. 143-48.1(c) . "(14) The Division of Adult Correction of the Department of Public Safety, which is subject to G.S. 143-134(b) . The Secretary of Public Safety shall be copied on the notice sent to the Division of Adult Correction. "(15) The North Carolina Code Officials Qualification Board, which is subject to G.S. 143-151.16(d) . The Commissioner of Insurance shall be copied on the notice sent to the Code Officials Qualification Board. "(16) The Roanoke Island Commission, which is subject to G.S. 143B-131.2(b)(15). The Secretary of Cultural Resources shall be copied on the notice sent to the Roanoke Island Commission. "(17) Any other State entity subject to contract review under G.S. 114-8.3 . "The Department of Administration, as part of its notice, shall provide a means by which an entity may acknowledge receipt and understanding of the notice. If the Department of Administration has not received an acknowledgement from a State entity within 30 days of sending the notice, the Department of Administration shall send a second notice. If the Department of Administration has not received an acknowledgement from a State entity within 30 days of sending the second notice, the Department of Administration shall notify (i) the Joint Legislative Program Evaluation Oversight Committee and (ii) the House Appropriations Subcommittee on General Government and the Senate Appropriations Committee on General Government and Information Technology." Effect of Amendments. - Session Laws 2001-240, s. 1, as amended by Session Laws 2005-213, s. 1, effective January 1, 2002, added the subsection (a) designation; added "Preference. - " at the beginning of subsection (a); and added subsections (b) through (e). Session Laws 2005-213, ss. 1 and 3, effective January 1, 2006, deleted the expiration date of December 13, 2007, and added subsection (f). Session Laws 2013-234, s. 9, effective July 3, 2013, in subsection (b), deleted "after consultation with the Board of Awards" following "Secretary of Administration" in the fifth sentence, and deleted "and the Board of Awards" following "Secretary of Administration" in the sixth sentence.