North Carolina § 143B-437 - 01. Industrial Development Fund Utility Account.

§ 143B-437. 01. Industrial Development Fund Utility Account.

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 creating jobs. 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: 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. The funds shall be used for projects located in economically distressed counties except that the Secretary of Commerce may use up to one hundred thousand dollars ($100,000) to provide emergency economic development assistance in any county that is documented to be experiencing a major economic dislocation. 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. There shall be no maximum funding amount per new job to be created or per project. There shall be no local match requirement if the project is located in a county that has one of the 25 highest rankings under G.S. 143B-437.08. The Department may authorize a local government that receives funds under this section to use up to two percent (2%) of the funds, if necessary, to verify that the funds are used only in accordance with law and to otherwise administer the grant or loan. No project subject to the Environmental Policy Act, Article 1 of Chapter 113A of the General Statutes, shall be funded unless the Secretary of Commerce finds that the proposed project will not have a significant adverse effect on the environment. The Secretary of Commerce shall not make this finding unless the Secretary has first received a certification from the Department of Environmental Quality that concludes, after consideration of avoidance and mitigation measures, that the proposed project will not have a significant adverse effect on the environment. The funds shall not be used for any retail, entertainment, or sports projects. The funds shall not be used for any nonmanufacturing project that does not meet the wage standard for the development tier area or zone in which the project is located. There is no wage standard for a development tier one area. If an urban progress zone or an agrarian growth zone is not in a development tier one area, then the wage standard for that zone is an average weekly wage that is at least equal to ninety percent (90%) of the lesser of the average wage for all insured private employers in the State and the average wage for all insured private employers in the county in which the project is located. The wage standard for a development tier two area or a development tier three area is an average weekly wage that is at least equal to one hundred ten percent (110%) of the lesser of the average wage for all insured private employers in the State and ninety percent (90%) of the average wage for all insured private employers in the county in which the project is located. Priority for the use of funds shall be given to eligible industries. Definitions. - The following definitions apply in this section: Air courier services. - The furnishing of air delivery of individually addressed letters and packages for compensation, in interstate commerce, except by the United States Postal Service. Repealed by Session Laws 2006-252, s. 2.4, effective January 1, 2007. Company headquarters. - A corporate, subsidiary, or regional managing office, as defined by NAICS in United States industry 551114, that is responsible for strategic or organizational planning and decision making for the business on an international, national, or multistate regional basis. Repealed by Session Laws 2006-252, s. 2.4, effective January 1, 2007. Economically distressed county. - A county that is defined as a development tier one or two area under G.S. 143B-437.08. Eligible industry. - A company headquarters or a person engaged in the business of air courier services, information technology and services, manufacturing, or warehousing and wholesale trade. Information technology and services. - An industry in one of the following, as defined by NAICS: Data processing industry group 518. Software publishers industry group 5112. Computer systems design and related services industry group 5415. An Internet activity included in industry group 519130. Major economic dislocation. - The actual or imminent loss of 500 or more manufacturing jobs in the county or of a number of manufacturing jobs equal to at least ten percent (10%) of the existing manufacturing workforce in the county. Manufacturing. - An industry in manufacturing sectors 31 through 33, as defined by NAICS, but not including quick printing or retail bakeries. Reserved. Warehousing. - An industry in warehousing and storage subsector 493 as defined by NAICS. Wholesale trade. - An industry in wholesale trade sector 42 as defined by NAICS. Repealed by Session Laws 1996, Second Extra Session, c. 13, s. 3.5. Repealed by Session Laws 2013-360, s. 15.18(a), effective July 1, 2013, and applicable to projects for which funds are initially provided on or after July 1, 2013. , (c1) Repealed by Session Laws 2012-142, s. 13.4(c), effective July 1, 2012. Repealed by Session Laws 1996, Second Extra Session, c. 13, s. 3.5. History (1989, c. 751, s. 9(c); c. 754, s. 54; 1991 (Reg. Sess., 1992), c. 959, s. 60; 1993, c. 444, s. 1; 1996, 2nd Ex. Sess., c. 13, s. 3.5; 1997-456, s. 27; 1998-55, s. 6; 1999-360, s. 17; 2000-56, s. 3(b); 2002-172, ss. 2.2(a), (b); 2003-416, s. 2; 2005-276, s. 13.5; 2006-252, s. 2.4; 2007-323, s. 13.18(i); 2009-523, s. 1(a)-(c); 2010-31, s. 14.9; 2012-74, s. 4; 2012-142, s. 13.4(c); 2013-360, s. 15.18(a); 2015-241, s. 14.30(u); 2016-5, s. 5.5(c); 2017-102, s. 44; 2018-5, s. 15.2(b).) Rural Center/Rural Jobs Fund. - Session Laws 2011-145, s. 14.20(a)-(i), as amended by Session Laws 2011-391, s. 38, provides: "(a) Appropriation. - There is appropriated from the General Fund to the North Carolina Rural Economic Development Center, Inc., (Rural Center) the sum of five million dollars ($5,000,000) for the 2011-2012 fiscal year in nonrecurring funds and the sum of five million dollars ($5,000,000) for the 2012-2013 fiscal year in nonrecurring funds to be used to provide grants to local government units for infrastructure needs as provided in this section. "(b) Definitions. - The following definitions shall apply in this section, unless otherwise provided: "(1) Economically distressed area. - An economically distressed county as defined in G.S. 143B-437.01. "(2) Private sector jobs. - Jobs that are located in or will be created in private, for-profit enterprises. "(3) Rural county. - Any of the 85 rural counties served by the Rural Center. "(c) Eligible Applicants; Eligible Projects. - A local government unit is eligible for a Rural Jobs Infrastructure Grant under the provisions of this section if it meets the eligibility requirements provided in subsection (d) of this section. The funds appropriated in this section may be used to provide grants that meet the requirements of subsections (d) and (e) of this section. Projects addressing the following infrastructure needs are eligible for receiving a Rural Jobs Infrastructure Grant under the provisions of this section: "(1) Public wastewater collection system upgrade, extension, improvements. "(2) Public wastewater treatment works. "(3) Public water system upgrade, extension, improvements. "(4) Natural gas availability. "(5) Fiber availability. "(6) Building restoration or upfits. "(7) Other infrastructure needs as may be determined by the Rural Center's Board of Directors. "(d) Rural Jobs Infrastructure Grants. - A Rural Jobs Infrastructure Grant is available to supplement other funds to be applied to the construction or installation costs of an eligible project. Other funds contributed to the project may include federal funds, State funds, and local funds, including contributions from private sector enterprises that may benefit from the proposed improvements. A Rural Jobs Infrastructure Grant is subject to the following provisions: "(1) Eligibility. - A local government unit is eligible for a Rural Jobs Infrastructure Grant if it is a rural county or is located in a rural county. "(2) Maximum grant amount. - Grant funds shall be available based upon the number of private sector jobs to be created as a result of the investment from the Rural Jobs Infrastructure Grant Fund. An applicant for a grant may request up to five thousand dollars ($5,000) per job to be created. An applicant for a Rural Jobs Infrastructure Grant shall not receive more than five hundred thousand dollars ($500,000) for a proposed infrastructure project. "(3) Matching funds. - A local government unit shall match a Rural Jobs Infrastructure Grant on a dollar-for-dollar basis. As part of the matching funds, recipients of grant funds under the provisions of this section shall contribute a cash match for the grant that is equivalent to at least five percent (5%) of the grant amount. The required applicant cash-matching contribution shall come from local resources and may not be derived from other State or federal grant funds or from funds provided by the Rural Center. "(e) Criteria for Grants. - All requests for Rural Jobs Infrastructure Grants shall do all of the following: "(1) Document the infrastructure needs that the project will address. "(2) Specify the number of jobs that will be created as a result of the infrastructure improvements proposed for funding assistance. "(3) Document the availability of all matching funds. "(4) Identify the private enterprises that will be creating the jobs and provide documentation that the enterprises will agree to contract to produce the number of jobs promised. "(5) Provide any additional documentation requested by the Rural Center to complete its review. "In awarding grants under this section, the Rural Center shall give preference to a resident company. For purposes of this section, the term 'resident company' means a company that has paid unemployment taxes or income taxes in this State and whose principal place of business is located in this State. An application for a project that serves an economically distressed area shall have priority over a project that does not. A Rural Jobs Infrastructure Grant to assist with water infrastructure needs is not subject to the provisions of G.S. 143-355.4. The Board of Directors of the Rural Center may establish additional criteria to effectively allocate the funds appropriated in this section. "(f) Grant Applications. - Any application for a grant under the provisions of this section shall be submitted by the local government unit to the Rural Center. An application shall be submitted on a form prescribed by the Rural Center and shall contain the information required by or subsequently requested by the Rural Center in order to make a determination on the application. An application that does not contain information required for the application or requested by the Rural Center is incomplete and is not eligible for consideration. "(g) Administrative Costs. - The Rural Center may use up to four percent (4%) of the funds appropriated in this section to cover administrative costs for the life of the grant program created under the provisions of this section. "(h) Loans Prohibited. - The Rural Center shall not use the funds appropriated in this section to make loans. "(i) Reports. - By September 1 of each year, and more frequently as requested, the Rural Center shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division concerning the progress of the emergency Rural Jobs Infrastructure Grant program created under the provisions of this section." Editor's Note. - This section was formerly numbered G.S. 143B-437A. It was renumbered as this section pursuant to S.L. 1997-456, s. 27 which authorized the Revisor of Statutes to renumber or reletter sections and parts of sections having a number or letter designation that is incompatible with the General Assembly's computer database. Session Laws 1996, Second Extra Session, c. 18, s. 26.5(b), was codified as subsection (c1) of this section at the direction of the Revisor of Statutes. 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 2013-360, s. 15.18(h), provides: "The Department of Commerce, in conjunction with the Office of the State Controller, shall close the Industrial Development Fund and the Utility Account and shall transfer the remaining fund balances of each to the Industrial Development Fund Utility Account." Session Laws 2013-360, s. 15.18(i), made the amendment to this section by Session Laws 2013-360, s. 15.18(a), applicable to projects for which funds are initially provided on or after July 1, 2013. 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 2018-5, s. 15.2(g), made the amendment of subdivision (a1)(4) of this section by Session Laws 2018-5, s. 15.2(b), effective June 12, 2018, and applicable to economic development awards made and related determinations occurring on or after January 1, 2019. Session Laws 2018-5, s. 15.6(a), (b), provides: "(a) Notwithstanding G.S. 143B-437.01, the sum of five million dollars ($5,000,000) transferred in this act from the Industrial Development Fund Utility Account to the Coastal Storm Damage Mitigation Fund shall be used for the purposes provided in G.S. 143-215.73M. "(b) Notwithstanding G.S. 143B-437.01, the Department of Commerce shall use two million dollars ($2,000,000) from the Industrial Development Fund Utility Account to provide a grant-in-aid to support the development of the lift fan repair and maintenance facility at the Cherry Point Marine Corps Air Station." 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. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2018-2019 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2018-2019 fiscal year." Session Laws 2018-5, s. 39.7, is a severability clause. Effect of Amendments. - Session Laws 2005-276, s. 13.5, effective July 1, 2005, in subdivision (a)(1) and subsection (b1), inserted "or transportation infrastructure" in two places, and made related stylistic changes. Session Laws 2006-252, s. 2.4, effective January 1, 2007, in subdivision (a)(3), substituted "a county that has one of the 25 highest rankings under G.S. 143B-437.08 after the adjustments of that section are applied" for "an enterprise tier one area as defined in G.S. 105-129.3"; rewrote subsection (a1); and in subsection (b1), substituted "the counties that have one of the 65 highest rankings under G.S. 143B-437.08 after the adjustments of that section are applied" for "enterprise tier one, two, and three areas, as defined in G.S. 105-129.3" at the end of the first sentence. Session Laws 2007-323, s. 13.18(i), effective January 1, 2008, substituted "or 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" for "after the adjustments of that section are applied" at the end of subdivision (a)(3). Session Laws 2009-523, s. 1(a), effective August 26, 2009, inserted "and retaining" in the introductory paragraph of subsection (a) and, in subdivision (a)(2), inserted "or retention" in the first sentence, and, in the second sentence, substituted "ten thousand dollars ($10,000)" for "five thousand dollars ($5,000)" and inserted "or per job retained." Session Laws 2009-523, s. 1(b) and (c), effective August 26, 2009, and expiring July 1, 2012, substituted "is defined as a tier one or tier two county" for "has one of the 65 highest rankings" at the beginning of subdivision (a1)(4); and substituted "are defined as a tier one or tier two county" for "have one of the 65 highest rankings" in the first sentence of subsection (b1). Session Laws 2010-31, s. 14.9, effective July 1, 2010, in subsections (c) and (c1), substituted "shall report to the Joint Legislative Commission on Governmental Operations on September 1 of each year" for "shall report annually to the General Assembly." Session Laws 2012-74, s. 4, effective June 26, 2012, in subdivision (a)(1), deleted "sewer" following "the water" near the beginning of the second sentence, and added the last sentence. Session Laws 2012-142, s. 13.4(c), effective July 1, 2012, repealed subsection (c) which pertained to "Reports" and repealed subsection (c1) which read: "In addition to the reporting requirements of subsection (c) of this section, the Department of Commerce shall report to the Joint Legislative Commission on Governmental Operations on September 1 of each year concerning the payments made from the Utility Account and the impact of the payments on job creation in the State. The Department of Commerce shall also report quarterly to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the use of the moneys in the Utility Account including information regarding to whom payments were made, in what amounts, and for what purposes." Session Laws 2013-360, s. 15.18(a), effective July 1, 2013, added "Utility Account" in the section heading; in subsection (a), substituted "a special account to be known as the Industrial Development Fund Utility Account ('Utility Account')" for "the Industrial Development Fund," "jobs" for "and retaining jobs in certain industries," and "account" for "fund"; rewrote subdivisions (a)(1), (a)(2), (a)(3), (a1)(1), (a1)(2a), (a1)(6), (a1)(8), (a1)(10), and (a1)(11); added "or for any retail, entertainment, or sports projects" in subdivision (a)(6); added subdivision (a)(7) and sub-subdivisions (a1)(6)a. through (a1)(6)d.; substituted "is defined as a development tier one or two area" for "has one of the 65 highest rankings" in subdivision (a1)(4); and deleted subsection (b1). For applicability, see Editor's note. Session Laws 2015-241, s. 14.30(u), effective July 1, 2015, substituted "Department of Environmental Quality" for "Department of Environment and Natural Resources" in subdivision (a)(5). Session Laws 2016-5, s. 5.5(c), effective May 11, 2016, rewrote subdivision (a)(6) which formerly read "The funds shall not be used for any nonmanufacturing project that does not meet the wage standard set out in G.S. 105-129.4(b) or for any retail, entertainment, or sports projects." Session Laws 2017-102, s. 44, effective July 12, 2017, substituted "project is located" for "datacenter is located" twice in subdivision (a)(6). Session Laws 2018-5, s. 15.2(b), deleted "after the adjustments of that section are applied" following "G.S. 143B-437.08" in subdivision (a1)(4). For effective date and applicability, see editor's note.