North Carolina § 143B-437 - 52. Job Development Investment Grant Program.

§ 143B-437. 52. Job Development Investment Grant Program.

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: 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. 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. The project is consistent with economic development goals for the State and for the area where it will be located. A grant under this Part is necessary for the completion of the project in this State. The total benefits of the project to the State outweigh its costs and render the grant appropriate for the project. 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. Priority. - In selecting between applicants, a project that is located in an Eco-Industrial Park certified under G.S. 143B-437.08 has priority over a comparable project that is not located in a certified Eco-Industrial Park. Award Limitations. - The following limitations apply to grants awarded under this Part: 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 thirty-five million dollars ($35,000,000) for a year in which no grants are awarded for a high-yield project and is forty-five million dollars ($45,000,000) 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). The limitation in this subdivision does not apply to transformative projects. 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 or transformative project. Geographic limitations. - Of the amount authorized in subdivision (1) of this subsection, no more than twenty million dollars ($20,000,000) may be used for projects located in counties with total employment of 500,000 or more and five million dollars ($5,000,000) is reserved for projects located in counties with an annual ranking pursuant to G.S. 143B-437.08 in the highest fifty percent (50%) of the remaining counties. In measuring total employment, the Secretary shall use the latest available data published by the Quarterly Census of Employment and Wages program. The limitations of this subdivision do not apply to a grant awarded to a high-yield or transformative project. Measuring Employment. - For the purposes of subdivision (a)(1) of this section and G.S. 143B-437.51(5), 143B-437.51(7), and 143B-437.57(a)(11), the Committee may designate that the increase or maintenance of employment is measured at the level of a division or another operating unit of a business, rather than at the business level, if both of the following conditions are met: The Committee makes an explicit finding that the designation is necessary to secure the project in this State. The agreement contains terms to ensure that the business does not create eligible positions by transferring or shifting to the project existing positions from another project of the business or a related member of the business. History (2002-172, s. 2.1(a); 2003-416, s. 2; 2003-435, 2nd Ex. Sess., s. 2.2; 2004-124, ss. 32G.1(b), 32G.1(c), 32G.1(e); 2006-168, s. 1.2; 2006-264, s. 69(b); 2009-394, s. 1; 2010-147, s. 5.3; 2012-142, s. 13.6(g); 2013-360, s. 15.19(a); 2015-259, s. 1(b); 2015-264, s. 91(a); 2017-57, s. 15.15A(b); 2018-5, s. 15.1(b).) Editor's Note. - Session Laws 2002-172, s. 2.1(b), provides: "In developing criteria under G.S. 143B-437.46 [now G.S. 143B-437.52] for the awarding of grants under Part 2G of Article 10 of Chapter 143B of the General Statutes and under G.S. 143B-437.50 [now G.S. 143B-437.56] for determining the percentage upon which the amount of a grant is based, the Economic Investment Committee, in consultation with the Attorney General, may consider criteria that address the following: "(1) Factors related to the economic impact of the project, such as the following: "a. Impact on gross regional product and gross State product. "b. Costs and benefits of the project to the State, including the expected return on investment made in the project by the State. "c. Number of direct jobs that will be created by the project, the wages of those jobs, and the total payroll for the project. "d. Number of induced short-term, project-related jobs expected to be generated by the project as well as the number of long-term permanent jobs expected to be generated indirectly in the economy as a result of the project. "e. Dollar value of the investment, including the size of the investment in real versus personal property and expected depreciation rates. "f. Economic circumstances of the county and region, including the extent to which the project will serve to mitigate unemployment. "g. The expected time frame during which the project is expected to pay back in State tax revenues the amount of any grants to be paid out. "h. The economic demands the project is expected to place upon the community or communities in which it will locate. "i. The number of eligible positions that would be filled by residents of development zones. "(2) Factors related to the strategic importance of the project to the State, region, or locality, such as the following: "a. The extent to which the project builds or enhances an industrial cluster. "b. The extent to which the project falls within a classification of business and industry that the Department of Commerce regards as a target for growth and expansion in the State. "c. The ability of the project to attract follow-on investment in the State by suppliers and vendors. "d. The extent to which the project serves to maintain and grow jobs in the State in a business undergoing an internal restructuring or rationalization process. "e. The extent to which the project can be expected to contribute significantly to and support the local community. "(3) Factors related to the quality of jobs, such as the following: "a. The wage level and status of the jobs to be created. "b. The quality and value of benefits offered by the company. "c. The potential for employee advancement. "d. The extent of training programs offered by the company. "e. The sustainability of the jobs in the future. "f. The workplace safety record of the company. "(4) Factors related to the quality of the industry and the project, such as the following: "a. The nature of the project and the project's relationship to the larger business of the company. "b. The nature of the industrial classification of the project and the nature of the business of the company undertaking it. "c. The long-term prospects for growth at the project site or sites. "d. The long-term prospects for growth of the company and the industry within the United States. "e. The financial stability of the company associated with the project. "(5) Factors related to the environmental impact of the project, such as the following: "a. The nature of the business to be conducted. "b. The ability of the project to satisfy State, federal, and local environmental law and regulations. "(6) The degree to which use of the program has been geographically dispersed among the various regions of the State and between rural and urban areas. "(7) Other factors that the Economic Investment Committee considers relevant that are not inconsistent with this section and that the Committee determines will further the purposes of Part 2G of Article 10 of Chapter 143B of the General Statutes." References to "Part 2F" in the notes above have been changed to "Part 2G" at the direction of the Revisor of Statutes. Session Laws 2003-416, s. 2, provides: "S.L. 2002-172 is reenacted." Session Laws 2004-124, s. 32G.1(h), provides: "It is the intent of the General Assembly that the benefits of a robust and growing economy be shared by all citizens of the State regardless of their geographic location or whether they live in urban, suburban, or rural areas. In striving for balanced economic development throughout the State, the General Assembly has designed a system to identify areas of the State that are most in need of additional economic development and has designed economic development programs to provide for relatively stronger incentives in those areas. In keeping with this policy of balanced economic development, the General Assembly strongly encourages the Department of Commerce and the Economic Investment Committee to give priority consideration under the Job Development Investment Grant program to projects that are located or will locate in less economically developed areas." Session Laws 2004-124, s. 32G.1(j), provides that s. 32G.1(b) and (e) are effective July 20, 2004, while s. 32G.1(c) is effective January 1, 2004, and applies to agreements entered into on or after that date. Session Laws 2004-124, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2004'." Session Laws 2004-124, s. 33.5, is a severability clause. Session Laws 2005-241, s. 8, provides: "The Economic Development Oversight Committee, created pursuant to Section 7 of this act, shall complete a comprehensive study of Article 3A of Chapter 105 of the General Statutes (the Bill Lee Act) and the Job Development Investment Grant Program (JDIG) established under Part 2G of Article 10 of Chapter 143B of the General Statutes. Before adopting a report on this issue, the Economic Development Oversight Committee must hold at least one joint meeting with the Revenue Laws Study Committee. The Economic Development Oversight Committee shall complete the study and submit it to the General Assembly, along with any recommendations or legislative proposals, before the beginning of the 2006 Regular Session of the 2005 General Assembly. The study shall focus on comprehensive reform of the Bill Lee Act, JDIG, and related economic development incentives. It is the intent of the General Assembly to replace the current Bill Lee Act beginning with the 2007 taxable year with a program recommended by the Committee and to revamp JDIG based on the Committee's recommendations." Session Laws 2005-370, s. 3, provides: "As part of the study of the William S. Lee Act and the Job Development Investment Grant Program directed in Section 8 of S.L. 2005-241, the Economic Development Oversight Committee (Committee) shall study the use of reverse auctions for the procurement of professional services, including architectural, engineering, surveying and construction management at risk, or other construction services, by businesses that receive economic development incentives from the State or a local government. The Committee shall consider the advisability of making business incentives contingent upon a business's commitment not to use a reverse auction procurement process. The Economic Development Oversight Committee shall complete the study and submit it to the General Assembly before the beginning of the 2006 Regular Session of the 2005 General Assembly." Session Laws 2006-264, s. 69(b) was repealed, pursuant to the terms of Session Laws 2006-264, s. 69(g), upon Session Laws 2006-168 becoming law. Session Laws 2007-323, s. 13.1A, provides: "Notwithstanding G.S. 143B-437.52(c), the maximum amount of total annual liability for grants for agreements entered into in calendar year 2007 under the Job Development Investment Grant Program, including amounts transferred to the Utility Account pursuant to G.S. 143B-437.61, may not exceed twenty-five million dollars ($25,000,000)." Session Laws 2008-147, s. 2, provides: "Notwithstanding G.S. 143B-437.52(c), the maximum amount of total annual liability for grants for agreements entered into in calendar year 2008 under the Job Development Investment Grant Program, including amounts transferred to the Utility Account pursuant to G.S. 143B-437.61, may not exceed twenty-five million dollars ($25,000,000)." For prior similar provisions, see Session Laws 2007-323, s. 13.1A. Session Laws 2012-142, s. 13.6(a), provides: "The General Assembly acknowledges the importance of ongoing economic growth and development in this State. To that end, it is the intent of the General Assembly to fund the commitments of the One North Carolina Fund, as evidenced by the General Assembly's past and recurring appropriations to the Fund and as set forth in this section, and to establish a funding structure that aligns with the funding structure that is and has been used with the Job Development Investment Grant Program. The General Assembly has continued this level of commitment while remaining fiscally responsible in addressing the other critical, high-priority needs of the State." 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. 15.19(c), made the amendment to subsection (c) by Session Laws 2013-360, s. 15.19(a), applicable to applications and awards made on or after July 1, 2013. Session Laws 2013-360, s. 15.19(a1), as amended by Session Laws 2015-259, s. 1(h), provides: "Notwithstanding G.S. 143B-437.52(c), for the period from July 1, 2013, to December 31, 2015, the maximum total liability for grants awarded, including amounts transferred to the Utility Account pursuant to G.S. 143B-437.61, is thirty-five million dollars ($35,000,000) if no grant is awarded for a high-yield project and is fifty million dollars ($50,000,000) if 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 an applicable time period provided in this subsection, could cause the State's potential total annual liability for grants awarded in that time period to exceed the designated maximum amount." 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 2015-259, s. 1(j), as amended by Session Laws 2015-264, s. 91(a), made the amendment by Session Laws 2015-259, s. 1(b), effective October 1, 2015, and applicable to awards made under Part 2G of Article 10 of Chapter 143B of the General Statutes on or after that date. Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'" Session Laws 2017-57, s. 39.6, is a severability clause. Session Laws 2018-5, s. 15.1(g), made the amendment of subsection (c) of this section by Session Laws 2018-5, s. 15.1(b), effective June 12, 2018, and applicable to grants awarded on or after that date. 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. Effect of Amendments. - Session Laws 2004-124, s. 32G.1(b), (c), and (e), substituted "25" for "15" in subsection (b); substituted "fifteen million dollars ($15,000,000)" for "ten million dollars ($10,000,000)" in subsection (c); and inserted "143B-437.51(5), 143B-437.57(a)(11)" preceding "143B-437.57(a)(11)" in subsection (d). See editor's note for effective dates and applicability. Session Laws 2006-168, s. 1.2, effective July 27, 2006, in subsection (c), in the first sentence, substituted "Except as provided in this section, the" for "The" and inserted "including amounts transferred to the Utility Account pursuant to G.S. 143B-437.61," and added the second sentence; and substituted "agreement" for "designation" at the beginning of subdivision (d)(2). Session Laws 2009-394, s. 1, effective July 31, 2009, in subsection (a), in the introductory language, deleted "negotiated" preceding "agreements" in the first sentence; in subsection (b), substituted "grants the Committee may award in" for "agreements the Committee may enter into"; in subsection (c), in the first sentence, deleted "Except as provided in this section" from the beginning, and substituted "awarded" for "for agreements entered into" near the middle, deleted the former second sentence, which read: "The maximum amount of total annual liability for grants for agreements entered into in 2006, including amounts transferred to the Utility Account pursuant to G.S. 143B-437.61, may not exceed thirty million dollars ($30,000,000)," and in the last sentence, substituted "governing grants awarded during a single" for "entered into during that" near the middle, and "awarded in a single" for "entered into in that" near the end. Session Laws 2010-147, s. 5.3, effective July 22, 2010, and applicable to grant applications submitted on or after July 1, 2010, in subsection (b), inserted "and Priority" and added the last sentence. Session Laws 2012-142, s. 13.6(g), effective July 1, 2012, in subsection (b), substituted "Priority" for "Cap and Priority," deleted the first sentence which read: "The maximum number of grants the Committee may award in each calendar year is 25"; in subsection (c), substituted "Awards" for "Ceiling," and in the first sentence substituted "year under this Part, including amounts transferred to the Utility Account pursuant to G.S. 143B-437.61, is" for "year, including amounts transferred to the Utility Account pursuant to G.S. 143B-437.61, may not exceed." Session Laws 2013-360, s. 15.19(a), effective July 1, 2013, added the last sentence in subsection (c). For applicability, see Editor's note. Session Laws 2015-259, s. 1(b), added subdivision (a)(6); rewrote subdivision (c)(1); and added subdivision (c)(2). For effective date and applicability, see Editor's note. Session Laws 2017-57, s. 15.15A(b), effective July 1, 2017, added the last sentence in subdivision (c)(1); and added "or transformative" in subdivision (c)(2). Session Laws 2018-5, s. 15.1(b), effective June 12, 2018, in the first sentence of subdivision (c)(1), substituted "thirty-five million dollars ($35,000,000)" for "twenty million dollars ($20,000,000)" and substituted "forty-five million dollars ($45,000,000)" for "thirty-five million dollars ($35,000,000)"; and added subdivision (c)(3). For effective date and applicability, see editor's note.