Bill Text: NC S618 | 2017-2018 | Regular Session | Amended
Bill Title: EDGE Committee Draft
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2017-04-05 - Ref To Com On Rules and Operations of the Senate [S618 Detail]
Download: North_Carolina-2017-S618-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
S 1
SENATE BILL 618*
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Short Title: EDGE Committee Draft. |
(Public) |
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Sponsors: |
Senators Brown, Britt, Lee (Primary Sponsors); McInnis and Smith-Ingram. |
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Referred to: |
Rules and Operations of the Senate |
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April 5, 2017
A BILL TO BE ENTITLED
AN ACT to make certain changes to economic development incentives of the state to clarify the importance of using development funds in the more distressed areas of the State and make other changes.
The General Assembly of North Carolina enacts:
PART I. Modify contracting for performance of duties BY THE DEPARTMENT OF COMMERCE
SECTION 1.(a) G.S. 143B‑431.01 reads as rewritten:
"§ 143B‑431.01. Department of Commerce contracting of functions.
(b) Contract. The Department of Commerce is authorized to contract with a North Carolina nonprofit corporation to perform one or more of the Department's functions, powers, duties, and obligations set forth in G.S. 143B‑431, except as provided in this subsection. The contract entered into pursuant to this section between the Department and the Economic Development Partnership of North Carolina is exempt from Articles 3 and 3C of Chapter 143 of the General Statutes and G.S. 143C‑6‑23. If the Department contracts with a North Carolina nonprofit corporation to promote and grow the travel and tourism industries, then all funds appropriated to the Department for tourism marketing purposes shall be used for a research‑based, comprehensive marketing program directed toward consumers in key markets most likely to travel to North Carolina and not for ancillary activities, such as statewide branding and business development marketing. The Department may not contract with a North Carolina nonprofit corporation regarding any of the following:
(5) Site certification functions and activities performed by the Department.
(6) The performance of one or more functions, powers, duties, or obligations of any other State agency.
(e) Mandatory Contract Terms. Any contract entered into under this section must include all of the following:
(2) A provision requiring the nonprofit corporation to provide by September 1 of each year, and more frequently as requested, a report to the Department on prior State fiscal year program activities, objectives, and accomplishments and prior State fiscal year itemized expenditures and fund sources. The report shall also include all of the following:
a. Jobs anticipated to result from efforts of the nonprofit corporation. This includes the name and contact person of each company creating new jobs in the State, the location of each project, and project leads that were not submitted to the Department for possible discretionary incentives pursuant to Chapter 143B of the General Statutes.
b. Developed performance metrics of economic development functions itemized by county, by development tier area designation, as defined by G.S. 143B‑437.08, and by Collaboration for Prosperity Zones created pursuant to G.S. 143B‑28.1.
c. Any proposed amendments to the areas of expertise required to be represented on the governing board of the nonprofit corporation.
d. A detailed explanation of how annual salaries are determined, including base pay schedules and any additional salary amounts or bonuses that may be earned as a result of job performance. The explanation shall include the proportion of State and private funds for each position and shall include the means used by the nonprofit corporation to foster employee efforts for economic development in rural and low‑income areas in the State. Any bonuses paid to employees shall be based upon overall job performance and not be based on a specific project lead. Bonuses awarded for job performance may only be measured by reference to work alleviating economic distress in development tier one or two areas, as defined by G.S. 143B‑437.08, unless the job performance resulted in an award to a high‑yield project, as defined in G.S. 143B‑437.51. The bonus award structure shall ensure that job performance for work alleviating economic distress in development tier one areas results in the greatest incentive.
(17) A provision prohibiting the nonprofit corporation from contracting with any State agency other than the Department for the performance of one or more of the agency's functions, powers, duties, or obligations.
."
SECTION 1.(b) This section is effective when it becomes law.
PART II. Discretionary Economic Development Fund Modifications
SECTION 2.1.(a) G.S. 143B‑437.51 reads as rewritten:
"§ 143B‑437.51. Definitions.
The following definitions apply in this Part:
(5) Eligible position. A position created by a business and filled by a new full‑time employee in this State during the base period. The term does not include a position filled by a worker with an H‑1B visa/with H‑1B status.
."
SECTION 2.1.(b1) G.S. 143B‑437.52(a) reads as rewritten:
"(a) Program. There is established the Job Development Investment Grant Program to be administered by the Economic Investment Committee. In order to foster job creation and investment in the economy of this State, the Committee may enter into agreements with businesses to provide grants in accordance with the provisions of this Part. The Committee, in consultation with the Attorney General, shall develop criteria to be used in determining whether the conditions of this section are satisfied and whether the project described in the application is otherwise consistent with the purposes of this Part. Before entering into an agreement, the Committee must find that all the following conditions are met:
(1) The project proposed by the business will create, during the term of the agreement, a net increase in employment in this State by the business.
(2) The project will benefit the people of this State by increasing opportunities for employment and by strengthening this State's economy by, for example, providing worker training opportunities, constructing and enhancing critical infrastructure, increasing development in strategically important industries, or increasing the State and local tax base.
(3) The project is consistent
with economic development goals for the State and for the area where it will be
located.located, including the anticipated effect the project
described in the application will have on the development factors, as
calculated pursuant to G.S. 143B‑437.08, of the area.
(4) A grant under this Part is necessary for the completion of the project in this State.
(5) The total benefits of the project to the State outweigh its costs and render the grant appropriate for the project.
(6) For a project located in a development tier three area, the affected local governments have participated in recruitment and offered incentives in a manner appropriate to the project."
SECTION 2.1.(b2) Effective January 1, 2018, G.S. 143B‑437.52(c) reads as rewritten:
"(c) Award Limitations. The following limitations apply to grants awarded under this Part:
(1) Maximum liability. The maximum amount of total annual liability for grants awarded in any single calendar year under this Part, including amounts transferred to the Utility Account pursuant to G.S. 143B‑437.61, is twenty million dollars ($20,000,000) for a year in which no grants are awarded for a high‑yield project and is thirty‑five million dollars ($35,000,000) for a year in which a grant is awarded for a high‑yield project. No agreement may be entered into that, when considered together with other existing agreements governing grants awarded during a single calendar year, could cause the State's potential total annual liability for grants awarded in a single calendar year to exceed the applicable amount. The Department shall make every effort to ensure that the average percentage of withholdings of eligible positions for grants awarded under this Part does not exceed the average of the range provided in G.S. 143B‑437.56(a).
(2) Semiannual commitment limitations. Of the amount authorized in subdivision (1) of this subsection, no more than fifty percent (50%), excluding roll‑over amounts, may be awarded in any single calendar semiannual period. A roll‑over amount is any amount from a previous semiannual period in the same calendar year that was not awarded as a grant. The limitation of this subdivision does not apply to a grant awarded to a high‑yield project.
(3) Geographic limitations. Of the amount authorized in subdivision (1) of this subsection, no more than fifty percent (50%) may be awarded for projects located in whole or in part in development tier three areas. Of the amount that may be awarded for projects located in whole or in part in development tier three areas pursuant to this subdivision, no more than fifty percent (50%) may be awarded for projects located in whole or in part in attainment areas. The limitations of this subdivision do not apply to a grant awarded to a high‑yield project."
SECTION 2.1.(c) G.S. 143B‑437.56 reads as rewritten:
"§ 143B‑437.56. Calculation of minimum and maximum grants; factors considered.
(a) Subject to the
provisions of subsections (a1) and (d) of this section, the amount of the grant
awarded in each case shall be a percentage of the withholdings of eligible
positions for a period of years. The percentage shall be no more than (i) eighty
percent (80%) for a development tier one area area, (ii) no more than
seventy percent (70%) for a development tier two area, (iii) no more than sixty
percent (60%) for a development tier three area that is not designated as an
attainment area pursuant to G.S. 143B‑437.08, and (iv) no more than fifty
percent (50%) for a county designated as an attainment area pursuant to G.S. 143B‑437.08.and
no more than seventy‑five percent (75%) for any other area. If the
project will be located in more than one area designation, the location with
the highest area designation determines the maximum percentage to be used. The
percentage used to determine the amount of the grant shall be based on criteria
developed by the Committee, in consultation with the Attorney General, after
considering at least the following:
(1) The number of eligible positions to be created.
(2) The expected duration of those positions.
(3) The type of contribution the business can make to the long‑term growth of the State's economy.
(4) The amount of other financial assistance the project will receive from the State or local governments.
(5) The total dollar investment the business is making in the project.
(6) Whether the project utilizes existing infrastructure and resources in the community.
(7) Whether the project is located in a development zone.
(8) The number of eligible positions that would be filled by residents of a development zone.
(9) The extent to which the project will mitigate unemployment in the State and locality.
(d) For any eligible
position that is located in a county designated as an attainment area pursuant
to G.S. 143B‑437.08, fifty percent (50%) of the annual grant
approved for disbursement shall be payable to the business, and fifty percent (50%)
shall be payable to the Utility Account pursuant to G.S. 143B‑437.61.
For any eligible position that is located in a development tier three area,
seventy‑five percent (75%)area that is not designated as an
attainment area pursuant to G.S. 143B‑437.08, seventy percent (70%)
of the annual grant approved for disbursement shall be payable to the business,
and twenty‑five percent (25%)thirty percent (30%) shall be
payable to the Utility Account pursuant to G.S. 143B‑437.61. For any
eligible position that is located in a development tier two area, ninety
percent (90%) of the annual grant approved for disbursement shall be payable to
the business, and ten percent (10%) shall be payable to the Utility Account
pursuant to G.S. 143B‑437.61. A position is located in the
development tier area that has been assigned to the county in which the project
is located at the time the application is filed with the Committee. This
subsection does not apply to a high‑yield project in years in which the
business receives the enhanced percentage pursuant to subsection (a1) of this
section.
."
SECTION 2.2. G.S. 143B‑437.72 reads as rewritten:
"§ 143B‑437.72. Agreements required; disbursement of funds.
(b) Company Performance Agreements. An agreement between a local government and a grantee business must contain the following provisions:
(1) A commitment to create or retain a specified number of jobs within a specified salary range at a specific location and commitments regarding the time period in which the jobs will be created or retained and the minimum time period for which the jobs must be maintained. Provisions regarding the commitment required pursuant to this subdivision may not include the number of jobs filled by workers with H‑1B visas/with H‑1B status.
(2) A commitment to provide proof satisfactory to the local government and the State of new jobs created or existing jobs retained and the salary level of those jobs.
(3) A provision that funds received under the agreement may be used only for a purpose specified in G.S. 143B‑437.71(b).
(4) A provision allowing the State or the local government to inspect all records of the business that may be used to confirm compliance with the agreement or with the requirements of this Part.
(5) A provision establishing the method for determining compliance with the agreement.
(6) A provision establishing a schedule for disbursement of funds under the agreement that allows disbursement of funds only in proportion to the amount of performance completed under the agreement.
(6a) A provision establishing that a business that has completed performance and become entitled to a final disbursement of funds under the agreement must timely request, in writing to the Secretary of Commerce, a disbursement of funds within not more than one year from the date of completed performance or forfeit the disbursement.
(6b) A provision establishing that a business that anticipates becoming entitled to a disbursement of funds under the agreement shall notify the Secretary of Commerce of the potential payment no later than March 1 of the fiscal year preceding the fiscal year in which the performance is anticipated to be completed.
(7) A provision requiring recapture of grant funds if a business subsequently fails to comply with the terms of the agreement.
(8) Any other provision the State or the local government finds necessary to ensure the proper use of State or local funds.
(c) Local Government Grant Agreement. An agreement between the State and one or more local governments shall contain the following provisions:
(1) A commitment on the part of the local government to match the funds allocated by the State, as provided in this subdivision. A local match may include cash, fee waivers, in‑kind services, the donation of assets, the provision of infrastructure, or a combination of these.
a. For a local government in a development tier one area, as defined in G.S. 143B‑437.08, the State shall provide no more than three dollars ($3.00) for every one dollar ($1.00) provided by the local government.
b. For a local government in a development tier two area, as defined in G.S. 143B‑437.08, the State shall provide no more than two dollars ($2.00) for every one dollar ($1.00) provided by the local government.
c. For a local government in a development tier three area that is not designated as an attainment area, as defined in G.S. 143B‑437.08, the State shall provide no more than one dollar ($1.00) for every one dollar ($1.00) provided by the local government.
d. For a local government in an attainment area, as defined in G.S. 143B‑437.08, the State shall provide no more than one dollar ($1.00) for every four dollars ($4.00) provided by the local government.
."
SECTION 2.3.(a) G.S. 143B‑437.01(a) reads as rewritten:
"(a) Creation and Purpose
of Fund. There is created in the Department of Commerce a special account to
be known as the Industrial Development Fund Utility Account ("Utility
Account") to provide funds to assist the local government units of the
most economically distressed counties in the State in retaining or creating
jobs.jobs, including expanding the existing job base. The
Department of Commerce shall adopt rules providing for the administration of
the program. Those rules shall include the following provisions, which shall
apply to each grant from the account:
(1) The funds shall be used for construction of or improvements to new or existing water, sewer, gas, telecommunications, high‑speed broadband, electrical utility distribution lines or equipment, or transportation infrastructure for existing or new or proposed buildings. To be eligible for funding, the water, gas, telecommunications, high‑speed broadband, electrical utility lines or facilities, or transportation infrastructure shall be located on the site of the building or, if not located on the site, shall be directly related to the operation of the job creation activity. To be eligible for funding, the sewer infrastructure shall be located on the site of the building or, if not located on the site, shall be directly related to the operation of the job creation activity, even if the sewer infrastructure is located in a county other than the county in which the building is located.
(2) The funds shall be used by the city and county governments for projects that are reasonably anticipated to result in the creation of new jobs, including expanding the existing job base, or retention of existing jobs. There shall be no maximum funding amount per new job to be created or per project.
."
SECTION 2.3.(b) This section is effective when it becomes law and applies to grants awarded on or after that date.
SECTION 2.4. Subsections (a), (b1), and (c) of Section 2.1 of this Part and Section 2.2 of this Part become effective January 1, 2017, and apply to awards made on or after that date. Except as otherwise provided, the remainder of this Part is effective when it becomes law.
PART III. DEVELOPMENT TIER MODIFICATIONS
SECTION 3.(a) G.S. 143B‑437.08 reads as rewritten:
"§ 143B‑437.08. Development tier designation.
(b) Development Factor. Each year, on or before November 30, the Secretary of Commerce shall assign to each county in the State a development factor that is the sum of the following:
(1) The county's rank in a ranking of counties by average rate of unemployment from lowest to highest, for the most recent 12 months for which data are available.
(2) The county's rank in a ranking of counties by median household income from highest to lowest, for the most recent 12 months for which data are available.
(3) The county's rank in a ranking of counties by percentage growth in population from highest to lowest, for the most recent 36 months for which data are available.
(4) The county's rank in a ranking of counties by adjusted assessed property value per capita as published by the Department of Public Instruction, from highest to lowest, for the most recent taxable year.
(c) Annual Ranking. After
computing the development factor as provided in this section and making the
adjustments required in this section, the Secretary of Commerce shall rank
all the counties within the State according to their development factor from
highest to lowest. The Secretary shall then identify all the areas of the State
by development tier and publish this information. A development tier
designation is effective only for the calendar year following the designation.
(c1) Index. The Secretary of Commerce shall cost adjust the national value for per capita income to determine the State value for that factor and shall determine the State value for the factors listed in subdivisions (1), (3), and (4) of subsection (b) of this section. Using these metrics, the Secretary shall create an index, as follows: (i) the State average rate of unemployment divided by the county's average rate, (ii) the county's per capita income divided by the per capita income value for the State determined pursuant to this subsection, (iii) the county's percentage growth in population divided by the State's percentage growth, and (iv) the county's adjusted assessed property value per capita divided by the State adjusted assessed property value per capita. After computing the indices as provided in this subsection, the Secretary shall rank and publish all the counties within the State according to their index scores, along with the value against which the factor is compared, from lowest to highest. The Secretary shall separately designate any county with performance greater than that of the benchmarks for all indexed development factors as an "attainment area." An index score average and achievement area designation is effective only for the calendar year following the designation.
(d) Data. In measuring
rates of unemployment unemployment, per capita income, and median
household income, the Secretary shall use the latest available data published
by a State or federal agency generally recognized as having expertise
concerning the data. In measuring population and population growth, the
Secretary shall use the most recent estimates of population certified by the
State Budget Officer. For the purposes of this section, population statistics
do not include people incarcerated in federal or State prisons.
(e) Adjustment for Certain Small Counties.
Regardless of the actual development factor, any county that has a population
of less than 12,000 shall automatically be ranked one of the 40 highest
counties, any county that has a population of less than 50,000 shall
automatically be ranked one of the 80 highest counties, and any county that has
a population of less than 50,000 and more than nineteen percent (19%) of its
population below the federal poverty level according to the most recent federal
decennial census shall automatically be ranked one of the 40 highest counties.
(f) Adjustment for Development Tier One Areas.
Regardless of the actual development factor, a county designated as a
development tier one area shall automatically be ranked one of the 40 highest
counties until it has been a development tier one area for at least two
consecutive years.
(g) Exception for Two‑County Industrial Park.
An eligible two‑county industrial park has the lower development tier
designation of the designations of the two counties in which it is located if
it meets all of the following conditions:
(1) It is located in two contiguous counties, one of
which has a lower development tier designation than the other.
(2) At least one‑third of the park is located
in the county with the lower tier designation.
(3) It is owned by the two counties or a joint
agency of the counties, is under contractual control of designated agencies
working on behalf of both counties, or is subject to a development agreement
between both counties and third‑party owners.
(4) The county with the lower tier designation
contributed at least the lesser of one‑half of the cost of developing the
park or a proportion of the cost of developing the park equal to the proportion
of land in the park located in the county with the lower tier designation.
(5) Expired, effective July 1, 2012, pursuant to
Session Laws 2009‑524, s. 2.
(h) Exception for Certain Multijurisdictional
Industrial Parks. An eligible industrial park created by interlocal agreement
under G.S. 158‑7.4, and parcels of land located within the industrial
park that are subsequently transferred and used for industrial or commercial
purposes authorized for cities and counties under G.S. 158‑7.1, have the
lowest development tier designation of the designations of the counties in
which they are located if all of the following conditions are satisfied:
(1) The industrial park is located, at one or more
sites, in three or more contiguous counties.
(2) At least one of the counties in which the
industrial park is located is a development tier one area.
(3) The industrial park is owned by three or more
units of local government or a nonprofit corporation owned or controlled by
three or more units of local government.
(4) In each county in which the industrial park is
located, the park has at least 250 developable acres. A transfer of acreage
that reduces the number of developable acres below 250 developable acres in a
county does not affect an industrial park's eligibility under this subsection
if the transfer is to an owner who uses or develops the acreage for industrial
or commercial purposes authorized for cities and counties under G.S. 158‑7.1.
For the purposes of this subdivision, "developable acres" includes
acreage that is owned directly by the industrial park or its owners or that is
the subject of a development agreement between the industrial park or its
owners and a third‑party owner.
(5) The total population of all of the counties in
which the industrial park is located is less than 200,000.
(6) In each county in which the industrial park is
located, at least sixteen and eight‑tenths percent (16.8%) of the
population was Medicaid eligible for the 2003‑2004 fiscal year based on
2003 population estimates.
(i) Expired, effective July 1, 2013, pursuant to
Session Laws 2009‑505, s. 2, as amended by Session Laws 2012‑36, s.
1.
(j) Exception for Eco‑Industrial Park. An
Eco‑Industrial Park has a development tier one designation. An Eco‑Industrial
Park is an industrial park that the Secretary of Commerce has certified meets
the following requirements:
(1) It has at least 100 developable acres.
(2) It is located in a county that is not required
under G.S. 143‑215.107A to perform motor vehicle emissions inspections.
(3) Each building located in the industrial park is
constructed in accordance with energy‑efficiency and water‑use
standards established in G.S. 143‑135.37 for construction of a major
facility.
(4) Each business located in the park is in a clean‑industry
sector according to the Toxic Release Inventory by the United States
Environmental Protection Agency.
(k) Report. By November 30 of each year, the Secretary of Commerce shall submit a written report to the Joint Legislative Commission on Governmental Operations, the Senate Appropriations Committee on Natural and Economic Resources, the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, and the Fiscal Research Division of the General Assembly on the tier rankings required by subsection (c) of this section, including a map of the State whereupon the tier ranking of each county is designated."
SECTION 3.(b) G.S. 143B‑437.01(a1) reads as rewritten:
"(a1) Definitions. The following definitions apply in this section:
(4) Economically distressed
county. A county that is defined as a development tier one or two area under G.S. 143B‑437.08
after the adjustments of that section are applied.G.S. 143B‑437.08.
."
SECTION 3.(c) G.S. 143B‑472.127 reads as rewritten:
"§ 143B‑472.127. Programs administered.
(a) The Rural Economic
Development Division shall be responsible for administering the program whereby
economic development grants or loans are awarded by the Rural Infrastructure
Authority as provided in G.S. 143B‑472.128 to local government
units. The Rural Infrastructure Authority shall, in awarding economic
development grants or loans under the provisions of this subsection, give
priority to local government units of the counties that have one of the 80
highest rankings under G.S. 143B‑437.08 after the adjustment of
that section.G.S. 143B‑437.08. The funds available for
grants or loans under this program may be used as follows:
."
SECTION 3.(d) G.S. 143B‑472.128 reads as rewritten:
"§ 143B‑472.128. Rural Infrastructure Authority created; powers.
(j) Powers and Duties. The Authority has the following powers and duties:
(2) To award grants or loans
as provided in G.S. 143B‑472.127. In awarding grants or loans under
G.S. 143B‑472.127(a), priority shall be given to local government
units of the counties that have one of the 80 highest rankings under G.S. 143B‑437.08
after the adjustment of that section.G.S. 143B‑437.08.
."
SECTION 3.(e) This Part becomes effective January 1, 2018, and applies to economic development awards made and related determinations occurring on or after that date.
part IV. rural assistance
SECTION 4.(a) For each Collaboration for Prosperity Zone established in G.S. 143B‑28.1, the employees of the Department of Commerce in the zone shall examine each annual update of the plan required by G.S. 143B‑434.01, collate all information relevant to the zone, county, region, and other unit of local government in the zone, and provide a copy of the collated information to each unit of local government within the zone. The collated information shall also identify any additional regional assets not otherwise contained in the annual update. For any asset identified in the annual update or identified by the employees, an analysis shall be performed to identify appropriate potential industries best suited to maximize the beneficial economic impact of each asset. The employees shall identify for each asset any potential additional infrastructure needs anticipated for identified appropriate potential industries. The Department shall provide to the Economic Development and Global Engagement Joint Oversight Committee a list of any assets remaining in the collated information for more than two years by January 1 of each year.
SECTION 4.(b) For each Collaboration for Prosperity Zone established in G.S. 143B‑28.1, the employees of the Department of Commerce in the zone shall submit a report to the Joint Legislative Economic Development and Global Engagement Oversight Committee and the Fiscal Research Division on the following: (i) jobs anticipated to result from efforts of the employees, including the name and contact person of each company creating new jobs in the zone, (ii) the location of each project, including the development tier designation of the location, and (iii) project leads that were not submitted to the Department for possible discretionary incentives pursuant to Chapter 143B of the General Statutes.
SECTION 4.(c) This Part is effective when it becomes law.
PART V. Improve Project Impact
SECTION 5.(a) G.S. 143B‑428 reads as rewritten:
"§ 143B‑428. Department of Commerce declaration of policy.
It is hereby declared to be the
policy of the State of North Carolina to actively encourage the expansion of
existing environmentally sound North Carolina industry; to actively encourage
the recruitment of environmentally sound national and international industry
into North Carolina through industrial recruitment efforts and through effective
advertising, with an emphasis on high‑wage‑paying industry; to
promote the development of North Carolina's labor force to meet the State's
growing industrial needs; to promote the growth and development of our travel
and tourist industries; to promote the development of our State ports; and to
assure throughout State government, the coordination of North Carolina's
economic development efforts.efforts, with an emphasis on maximizing the
return on investment of economic development dollars by selecting projects and
project locations on the basis of providing the greatest relief to communities
experiencing chronic economic distress."
SECTION 5.(b) The Department of Commerce shall study means of effectuating the clarification in policy set forth in subsection (a) of this section. As part of the study, the Department shall examine ways to reformulate evaluation models and economic development tools of the State so as (i) to reduce emphasis on awarding incentives to projects based primarily on whether there is a net increase in State revenues and (ii) to increase emphasis on awarding incentives to projects that locate in and improve counties performing below the established performance goals. The Department shall report the results of the study, along with any proposed legislative recommendations, to the Joint Legislative Oversight Committee on Economic Development and Global Engagement no later than October 1, 2017.
SECTION 5.(c) G.S. 143B‑437.07 reads as rewritten:
"§ 143B‑437.07. Economic development grant reporting.
(a) Report. The Department
of Commerce must shall publish on or before October 1 of each
year the information required by this subsection, itemized by business entity,
for each business or joint private venture to which the State has, in whole or
in part, granted one or more economic development incentives during the
relevant time period. The relevant time period ends June 30 preceding the
publication date of this subsection and begins (i) for incentives not awarded
under Part 2G of this Article with the 2007 calendar year and (ii) for
incentives awarded under Part 2G of this Article with the 2002 calendar year.
The information in the report must shall include all of the
following:
(3) The name, mailing
address, telephone number, and Web site of the business recipient, or
recipients if a joint venture, and the physical location of the site receiving
the incentive. If the physical location of the site is undecided, then the name
of the county in which the site will be located. The information regarding the
physical location must shall indicate whether the physical
location is a new or expanded facility.
(b) Online Posting/Written
Submission. The Department of Commerce must shall post on its
Internet Web site a summary of the report compiled in subsection (a) of this
section. The summary report must shall include the information
required by subdivisions (2), (9), (11), and (12) of subsection (a) of this
section. By October 1 of each year, the Department of Commerce must shall
submit the written report required by subsection (a) of this section to the
Joint Legislative Commission on Governmental Operations, the Revenue Laws Study
Committee, the Senate Appropriations Committee on Natural and Economic
Resources, the House of Representatives Appropriations Subcommittee on Natural
and Economic Resources, and the Fiscal Research Division of the General
Assembly.
(c) Economic Development
Incentive. An economic development incentive includes any grant from the
following programs: Job Development Investment Grant Program; the Job
Maintenance and Capital Development Fund; One North Carolina Fund; and the
Utility Account. The State also incents economic development through the use of
tax expenditures in the form of tax credits and refunds. The Department of
Revenue must shall report annually on these statutory economic
development incentives, as required under G.S. 105‑256.
(d) County Improvement Plan and Reports. The Department of Commerce, using the index required by G.S. 143B‑437.08(c1), shall create a plan for improving the performance of each county underperforming the benchmark in one or more indexed development factors to the benchmark performance level at the time the plan was created. The plan shall cover a period of five years, and the Department shall create a new plan complying with this subsection at the expiration of the plan. The Department shall publish and submit an annual progress report to the Joint Legislative Oversight Committee on Economic Development and Global Engagement providing, at a minimum, a (i) comparison of the performance of each county to the benchmarked performance in each indexed development factor where the county underperformed the benchmark for the year and (ii) comparison of that performance to the county's performance in the previous year. The Department shall submit a copy of a plan for the first year after it is created and each progress report on or before April 1 of each year."
SECTION 5.(d) For purposes of the initial plan required by G.S. 143B‑437.07(d), as enacted by this act, the Department shall consult with and use data compiled by the Center for Competitive Economies at the Kenan‑Flagler Business School at the University of North Carolina in Chapel Hill for the study performed for the Joint Legislative Oversight Committee on Economic Development and Global Engagement.
SECTION 5.(e) This Part is effective when it becomes law.
part VI. Effective Date
SECTION 6. Except as otherwise provided, this act is effective when it becomes law.
