North Carolina § 146-30 - Application of net proceeds.

§ 146-30. Application of net proceeds.

The net proceeds of any disposition made in accordance with this Subchapter shall be handled in accordance with the following priority: First, in accordance with the provisions of any trust or other instrument of title whereby title to real property was acquired. Second, as provided by any other act of the General Assembly. Third, by depositing the net proceeds with the State Treasurer. Expired January 1, 2016, pursuant to Session Laws 2011-373, s. 2. For the purposes of this Subchapter, the term "net proceeds" means the gross amount received from the sale, lease, rental, or other disposition of any State lands, less all of the following: Expenses incurred incident to that sale, lease, rental, or other disposition that are allowed under rules adopted by the Governor and approved by the Council of State. Repealed by Session Laws 1993, c. 553, s. 52.2. A service charge to be paid into the State Land Fund. , (b2), (b3), (b4) Recodified. The amount or rate of the service charge described in subsection (b) of this section shall be fixed by rules adopted by the Governor and approved by the Council of State, but as to any particular sale, lease, rental, or other disposition, it shall not exceed ten percent (10%) of the gross amount received from the sale, lease, rental, or other disposition. Notwithstanding any other provision of this Subchapter, the following exceptions apply: No service charge into the State Land Fund shall be deducted from or levied against the proceeds of any disposition by lease, rental, or easement of State lands that are designated as part of the Centennial Campus as defined by G.S. 116-198.33(4), that are designated as part of the Horace Williams Campus as defined by G.S. 116-198.33(4a), or that are designated as part of a Millennial Campus as defined by G.S. 116-198.33(4b). All net proceeds of those dispositions are governed by G.S. 116-36.5. No service charge into the State Land Fund shall be deducted from or levied against the proceeds of any disposition by lease, rental, or easement of State lands purchased and owned by the North Carolina State Highway Patrol, Department of Public Safety, as part of the Voice Interoperability Plan for Emergency Responders (VIPER) project being managed by the North Carolina State Highway Patrol, Department of Public Safety. All net proceeds of these dispositions shall be deposited into an account created in the Department of Public Safety to be used only for the purpose of constructing, maintaining, or supporting the VIPER network. No service charge into the State Land Fund shall be deducted from or levied against the proceeds of any disposition by lease, rental, or easement of State lands or structures for the collocation, installation, or operation of equipment by a broadband provider on an existing structure owned by the State in accordance with G.S. 146-29.2. The agency that owns the land or structure subject to the lease, rental, or easement may retain an amount not to exceed four percent (4%) of the amount of the lease, rental, or easement. All net proceeds of those dispositions, after the amount retained by the agency, shall be deposited in the Growing Rural Economies with Access to Technology Fund established pursuant to subsection (b) of G.S. 143B-1373. No service charge into the State Land Fund shall be deducted from or levied against the proceeds of any disposition by lease, rental, or easement of lands owned by the Department of Transportation. All net proceeds of those dispositions shall be deposited into the State Highway Fund. The net proceeds derived from the sale of land or products of land owned by or under the supervision and control of the Wildlife Resources Commission, or acquired or purchased with funds of that Commission, shall be paid into the Wildlife Resources Fund. The net proceeds derived from the sale of land or timber from land owned by or under the supervision and control of the Department of Agriculture and Consumer Services shall be deposited with the State Treasurer in a capital improvement account to the credit of the Department of Agriculture and Consumer Services, to be used for such specific capital improvement projects or other purposes as are provided by transfer of funds from those accounts in the Capital Improvement Appropriations Act. The net proceeds derived from the sale of park land owned by or under the supervision and control of the Department of Natural and Cultural Resources shall be deposited with the State Treasurer in a capital improvement account to the credit of the Department of Administration to be used for the purpose of park land acquisition as provided by transfer of funds from those accounts in the Capital Improvement Appropriations Act. In the Capital Improvement Appropriations Act, line items for purchase of park and agricultural lands will be established for use by the Departments of Administration and Agriculture. The use of these funds for any specific capital improvement project or land acquisition is subject to approval by the Director of the Budget. No other use shall be made of funds in these line items without approval by the General Assembly except for incidental expenses related to the project or land acquisition. Additionally, with the approval of the Director of the Budget, either Department may request funds from the Contingency and Emergency Fund when the necessity of prompt purchase of available land can be demonstrated and funds in the capital improvement accounts are insufficient. The net proceeds derived from the sale of any portion of the land owned by the State in the Camp Butner reservation shall be deposited with the State Treasurer in a capital improvement account to the credit of the Department of Health and Human Services to make capital improvements on or to property owned by the State in the Camp Butner reservation subject to approval by the Office of State Budget and Management. The definition of "Camp Butner reservation" in G.S. 122C-3 applies to this subdivision. The net proceeds derived from the lease dispositions of land or facilities owned or under the supervision and control of East Carolina University's Division of Health Sciences for the delivery of health care services shall be deposited in clinical accounts at East Carolina University to be used to improve access to patient care. The net proceeds derived from the sale of land, facilities, products, or timber owned by the Department of Transportation shall be deposited into the State Highway Fund. Nothing in this section, however, prohibits the disposition of any State lands by exchange for other lands, but if the appraised value in fee simple of any property involved in the exchange is at least twenty-five thousand dollars ($25,000), then the exchange shall not be made without consultation with the Joint Legislative Commission on Governmental Operations. History (1959, c. 683, s. 1; 1975, 2nd Sess., c. 983, s. 30; 1977, c. 771, s. 4; c. 1012; 1979, c. 608, s. 1; 1981, c. 859, s. 23.4; c. 1127, s. 33; 1981 (Reg. Sess., 1982), c. 1282, s. 24; 1983, c. 717, ss. 86, 86.1, 86.2, 87; c. 761, s. 166; 1983 (Reg. Sess., 1984), c. 1034, s. 164; c. 1116, s. 97(d); 1989, c. 727, s. 218(155); c. 799, s. 26; 1993, c. 321, s. 260.1; c. 553, s. 52.2; 1997-261, s. 109; 1997-443, s. 11A.119(a); 1998-159, s. 4; 1999-234, s. 8; 2000-140, s. 93.1(a); 2000-177, s. 9; 2001-424, s. 12.2(b); 2007-269, s. 12; 2009-376, s. 15; 2011-145, s. 19.1(g); 2011-373, ss. 1, 2; 2012-194, s. 67; 2015-241, s. 14.30(w); 2018-5, ss. 34.12(a), 37.1(g); 2019-199, s. 2(b), (c); 2020-69, s. 5.3(a), (b).) Cross References. - As to net proceeds from certain University of North Carolina land sales being trust funds of the University, see G.S. 116-36.1. Editor's Note. - Session Laws 2007-269, s. 14.1, provides: "Section 1.1 through 14 of this act shall become effective only if the Charter of the Town of Butner is approved under section 5 of the Voting Rights Act of 1965; provided, however, that if the Charter is not approved under section 5 of the Voting Rights Act of 1965 because of any provisions contained in Article III or Article IV of the Charter, the Butner Advisory Council established in accordance with G.S. 122C-413 may make such amendments to the Article III or IV of the Charter as it, in its sole discretion, deems necessary to obtain such approval, and such amendments shall be filed in accordance with G.S. 160A-111. If the Charter is not approved, Sections 1.1 through 14 of this act have no force and effect. If the Charter is approved, then those sections become effective on the first day of the next calendar month that begins more than three days after the approval, except that the persons appointed as temporary officers under Section 3.2 of the Charter may immediately take the oath of office and take such preliminary actions as may be necessary for initial organization, personnel actions, and budget adoption, in such special meetings as may be called under G.S. 160A-71." The Charter of the Town of Butner was precleared by letter dated October 1, 2007. Session Laws 2007-323, s. 29.11A(a), provides: "All proceeds from the pending sale of the former Buncombe County Headquarters parcel, located at 5 Brown Road, Asheville, North Carolina, by the Department of Environment and Natural Resources, Division of Forest Resources, shall be transferred to the Department for deposit into a capital improvement account. These proceeds shall be used to construct an office, equipment storage building, and other improvements related to a new Buncombe County Headquarters facility. These proceeds shall not be subject to the service charge payable to the State Land Fund pursuant to G.S. 146-30." Session Laws 2007-323, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2007'." Session Laws 2007-323, s. 32.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2007-2009 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2007-2009 fiscal biennium." Session Laws 2007-323, s. 32.5, is a severability clause. Session Laws 2010-31, s. 30.3(b), provides: "From funds deposited with the State Treasurer in a capital improvement account to the credit of the Department of Agriculture and Consumer Services, pursuant to G.S. 146-30, the sum of thirty thousand dollars ($30,000) for the 2010-2011 fiscal year shall be transferred to the Department of Agriculture and Consumer Services to be used, notwithstanding G.S. 146-30, by the Department for its plant conservation program under Article 19B of Chapter 106 of the General Statutes for costs incidental to the acquisition of land, such as land appraisals, land surveys, title searches, environmental studies, and for the management of the plant conservation program preserves owned by the Department." For former similar provisions, see Session Laws 2007-323, s. 29.6(a), Session Laws 2008-107, s. 27.4(b), and Session Laws 2009-451, s. 27.4(b). Session Laws 2010-31, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2010'." Session Laws 2010-31, s. 32.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2010-2011 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2010-2011 fiscal year." Session Laws 2010-31, s. 32.6, is a severability clause. Session Laws 2011-145, s. 6.15(a)-(d), provides: "(a) Definition. - For purposes of this section, the term "State-owned disposable assets" or "assets" means State-owned land, buildings, and other assets that are unused, underused, or do not involve a core function of government. "(b) By September 1, 2011, the Department of Administration, in consultation with all other affected State departments, agencies, and institutions, shall do all of the following: "(1) Implement a system for the sale of State-owned disposable assets, considering the following: "a. The condition of the asset. "b. The extent to which the asset meets the purpose for which it was intended. "c. The future needs of the State to perform the service intended at the location. "d. The best and most cost-effective manner in which these future needs can be serviced. "e. The practicability of moving the function of the services performed at a location to another area that might reduce acquisition, construction, and labor costs without diminishing the quality of service. "f. The manner in which an asset should be (i) sold or retained, (ii) renovated, (iii) expanded for future use, or (iv) sold with a leaseback. "g. Other factors regarding use of the asset. "(2) Examine current State law to determine amendments to allow for the most efficient and effective disposition of assets. "(c) The Department of Administration shall take the action necessary to effectuate the sale of State-owned disposable assets in accordance with Section 2.2(a) of this act. "(d) By March 31, 2012, the Department of Administration shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on all asset sales made pursuant to this section." Session Laws 2011-145, s. 30.4(b), provides: "From funds deposited with the State Treasurer in a capital improvement account to the credit of the Department of Agriculture and Consumer Services pursuant to G.S. 146-30, the sum of thirty thousand dollars ($30,000) for the 2011-2012 fiscal year shall be transferred to the Department of Agriculture and Consumer Services to be used, notwithstanding G.S. 146-30, by the Department for its plant conservation program under Article 19B of Chapter 106 of the General Statutes for costs incidental to the acquisition of land, such as land appraisals, land surveys, title searches, and environmental studies, and for the management of the plant conservation program preserves owned by the Department." Session Laws 2011-145, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2011.'" Session Laws 2011-145, s. 32.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2011-2013 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2011-2013 fiscal biennium." Session Laws 2011-145, s. 32.5, is a severability clause. Session Laws 2011-373, s. 3, provides: "For the 2011-2013 fiscal biennium, the provisions of Section 6.15(c) of S.L. 2011-145 shall supersede the provisions of G.S. 146-30, as amended by this act. In fiscal year 2011-2012, any net proceeds from the disposition of State-owned disposal assets that exceed fifteen million dollars ($15,000,000) may be allocated in accordance with G.S. 146-30, as amended by this act. In fiscal year 2012-2013, any net proceeds from the disposition of State-owned disposal assets that exceed twenty-five million dollars ($25,000,000) may be allocated in accordance with G.S. 146-30, as amended by this act." Session Laws 2012-142, s. 7.8(c), provides: "Notwithstanding G.S. 146-30 or any other provision of law, the Department of Public Instruction shall retain all proceeds generated from the rental of building space on the residential school campuses. The Department of Public Instruction shall use all receipts generated from these leases to staff and operate the North Carolina School for the Deaf, the Eastern North Carolina School for the Deaf, and the Governor Morehead School. These receipts shall not be used to support administrative functions within the Department." Session Laws 2012-142, s. 26.9, provides: "From funds deposited with the State Treasurer in a capital improvement account to the credit of the Department of Agriculture and Consumer Services pursuant to G.S. 146-30, the sum of thirty thousand dollars ($30,000) for the 2012-2013 fiscal year shall be transferred to the Department of Agriculture and Consumer Services to be used, notwithstanding G.S. 146-30, by the Department for its plant conservation program under Article 19B of Chapter 106 of the General Statutes for costs incidental to the acquisition of land, such as land appraisals, land surveys, title searches, and environmental studies, and for the management of the plant conservation program preserves owned by the Department." Session Laws 2012-142, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2012.'" Session Laws 2012-142, s. 27.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2012-2013 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2012-2013 fiscal year." Session Laws 2012-142, s. 27.7, is a severability clause. Session Laws 2013-360, s. 8.15(b), provides: "Notwithstanding G.S. 146-30 or any other provision of law, the Department of Public Instruction shall retain all proceeds generated from the rental of building space on the residential school campuses. The Department of Public Instruction shall use all receipts generated from these leases to staff and operate the North Carolina School for the Deaf, the Eastern North Carolina School for the Deaf, and the Governor Morehead School. These receipts shall not be used to support administrative functions within the Department." Session Laws 2013-360, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2013.'" Session Laws 2013-360, s. 38.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2013-2015 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2013-2015 fiscal biennium." Session Laws 2013-360, s. 38.5, is a severability clause. Session Laws 2014-100, s. 34.20(a)-(c), provided for the sale of certain former NC Railroad properties. Session Laws 2014-100, s. 34.20(d), provides: "(d) Notwithstanding G.S. 146-30, the Department shall deposit the net proceeds from the disposition of the properties into the Freight Rail & Rail Crossing Safety Improvement Fund of the Highway Fund." Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'" Session Laws 2014-100, s. 38.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2014-2015 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2014-2015 fiscal year." Session Laws 2014-100, s. 38.7, is a severability clause. Session Laws 2015-241, s. 12F.7(c), provides: "Notwithstanding G.S. 146-30 or any other provision of law, the State Controller shall transfer a total of forty-nine million eight hundred ninety-nine thousand four hundred fifty-six dollars ($49,899,456) for the 2015-2016 fiscal year from the net proceeds of the sale of the Dorothea Dix Hospital property into the Dorothea Dix Hospital Property Fund established in G.S. 143C-9-2(b1), as enacted by subsection (b) of this section. These funds shall be available for expenditure only upon an appropriation by act of the General Assembly and do not constitute an 'appropriation made by law,' as that phrase is used in Section 7(1) of Article V of the North Carolina Constitution." Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'" Session Laws 2015-241, s. 33.6, is a severability clause. Session Laws 2017-57, s. 36.4(c), as added by Session Laws 2018-5, s. 36.4, provides: "Notwithstanding G.S. 146-15, G.S. 146-30, and any other provision of law to the contrary, the proceeds received as a result of the reallocation of property between the Department of Agriculture and Consumer Services and the Department of Military and Veterans Affairs for the construction of a nursing facility shall be retained by the Department of Agriculture and Consumer Services and are hereby appropriated to the Department of Agriculture and Consumer Services to be used for improvements at the State Fairgrounds." Session Laws 2018-5, s. 34.12(b), made the last sentence at the end of subsection (c) of this section, as added by Session Laws 2018-5, s. 34.12(a), effective June 12, 2018, and applicable to sales made on or after that date. Session Laws 2018-5, s. 37.1(i), provides, in part: "Subsections (f), (g), and (i) of this section are effective when it becomes law [June 12, 2018], and the Department of Administration shall adopt temporary rules consistent with this section no later than January 1, 2019, and shall adopt permanent rules no later than July 1, 2019." Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.7, is a severability clause. Session Laws 2019-199, s. 10(a), (b), provides: "(a) Notwithstanding any other provision of law, the Department of Transportation may sell the following real property parcels within Wake County: "(1) 1100 New Bern Ave., parcel identification number (PIN) 1713188611, Raleigh. "(2) 205 South State Street, parcel identification number (PIN) 1713186162, Raleigh. "(3) 207 South State Street, parcel identification number (PIN) 1713186095, Raleigh. "(4) 104 Fayetteville Street, parcel identification number (PIN) 1703688783, Raleigh. "(5) 101 Roscoe Trail, parcel identification number (PIN) 0775621438, Cary. "(b) The sale of real property authorized by this section shall be made by the Department of Administration pursuant to the procedures outlined in Article 7 of Chapter 146 of the General Statutes, subject to the following exceptions: "(1) Properties sold pursuant to this section are exempt from the requirement in G.S. 146-28 that the Department of Administration determine present and future State need for the land proposed to be conveyed. "(2) Properties sold pursuant to this section are exempt from G.S. 146-29.1(b) and (c). "(3) Notwithstanding the service charge limit set by G.S. 146-30(c), the service charge for a sale of property pursuant to this section shall not exceed the lesser of the amount or rate fixed in accordance with G.S. 146-30(c) or fifty thousand dollars ($50,000)." Effect of Amendments. - Session Laws 2007-269, s. 12, rewrote the last sentence in subsection (c). See the Editor's notes. Session Laws 2009-376, s. 15, effective July 31, 2009, added subsection (b2). Session Laws 2011-373, ss. 1 and 2, effective July 1, 2011, and expiring January 1, 2016, rewrote subsection (a); and added subsection (a1). Session Laws 2011-145, s. 19.1(g), effective January 1, 2012, substituted "Public Safety" for "Crime Control and Public Safety" three times in subsection (b)(2). Session Laws 2012-194, s. 67, effective July 17, 2012, added the last sentence in subsection (c). Session Laws 2015-241, s. 14.30(w), effective July 1, 2015, substituted "Department of Natural and Cultural Resources" for "Department of Environment and Natural Resources" in subsection (c). Session Laws 2018-5, s. 34.12(a), added the last sentence in subsection (c). For effective date and applicability, see editor's note. Session Laws 2018-5, s. 37.1(g), added subsection (b3). For effective date and applicability, see editor's note. Session Laws 2019-199, s. 2(b), (c), effective August 21, 2019, added subsection (b4); and substituted "land, facilities, products, or timber owned by the Department of Transportation" for "land or facilities purchased with funds from the State Highway Fund" in the last sentence of subsection (c). Session Laws 2020-69, s. 5.3(a), (b), effective July 1, 2020, rewrote the section. Opinions of Attorney General For opinion that service charge was not applicable in gift of trust situation described, see opinion of Attorney General to Mr. Carroll L. Mann, Jr., Property Control and Construction Division, Department of Administration, 41 N.C.A.G. 738 (1972).