North Carolina § 143B-437 - 55. Applications; fees; reports; study.

§ 143B-437. 55. Applications; fees; reports; study.

Application. - A business shall apply, under oath, to the Committee for a grant on a form prescribed by the Committee that includes at least all of the following: The name of the business, the proposed location of the project, and the type of activity in which the business will engage at the project site or sites. The names and addresses of the principals or management of the business, the nature of the business, and the form of business organization under which it is operated. The financial statements of the business prepared by a certified public accountant and any other financial information the Committee considers necessary. The number of eligible positions proposed to be created for the project and the salaries for these positions. An estimate of the total withholdings. Certification that the business will provide health insurance to full-time employees of the project as required by G.S. 143B-437.53(c). Information concerning other locations, including locations in other states and countries, being considered for the project and the nature of any benefits that would accrue to the business if the project were to be located in one of those locations. Information concerning any other State or local government incentives for which the business is applying or that it has an expectation of receiving. Any other information necessary for the Committee to evaluate the application. Application Fee. - When filing an application under this section, the business must pay the Committee a fee of (i) ten thousand dollars ($10,000) if the project is either a high-yield project or transformative project, regardless of location in the State, or is located in a development tier three area, (ii) five thousand dollars ($5,000) if the project is located in a development tier two area, or (iii) one thousand dollars ($1,000) if the project is located in a development tier one area. The fee is due at the time the application is filed. The Secretary of Commerce, the Secretary of Revenue, and the Director of the Office of State Budget and Management shall determine the allocation of the fee imposed by this section among their agencies. The proceeds of the fee are receipts of the agency to which they are credited. Within 30 days of receipt of an application under this section but prior to any award being made, the Department of Commerce shall notify each governing body of an area where a submitted application proposes locating a project of the information listed in this subsection, provided that the governing body agrees, in writing, to any confidentiality requirements imposed by the Department under G.S. 132-6(d). The information required by this subsection includes all of the following: The estimated amount of the grant anticipated to be awarded to the applicant for the project. Any economic impact data submitted with the application or prepared by the Department. Any economic impact estimated by the Department to result from the project. Annual Reports. - The Committee shall publish a report on the Job Development Investment Grant Program on or before April 30 of each year. The Committee shall submit the report electronically to the House of Representatives Finance Committee, the Senate Finance Committee, the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Fiscal Research Division. The report shall include the following: A listing of each grant awarded during the preceding calendar year, including the name of the business, the cost/benefit analysis conducted by the Committee during the application process, a description of the project, the term of the grant, the percentage of withholdings used to determine the amount of the grant, the annual maximum State liability under the grant, and the maximum total lifetime State liability under the grant. An update on the status of projects under grants awarded before the preceding calendar year. The number and development tier area of eligible positions to be created by projects with respect to which grants have been awarded. A listing of the employment level for all businesses receiving a grant and any changes in those levels from the level of the next preceding year. The wage levels of all eligible positions to be created by projects with respect to which grants have been awarded, aggregated and listed in increments of ten thousand dollars ($10,000) or other appropriate increments. The amount of new income tax revenue received from withholdings related to the projects for which grants have been awarded. For the first annual report after adoption of the criteria developed by the Committee, in consultation with the Attorney General, to implement this Part, a copy of such criteria, and, for subsequent reports, identification of any changes in those criteria from the previous calendar year. The number of awards made to new businesses and the number of awards made to existing, expanding businesses in the preceding calendar year. The environmental impact of businesses that have received grants under the program. The geographic distribution of grants, by number and amount, awarded under the program. Repealed by Session Laws 2009-394, s. 2, effective July 31, 2009. A listing of all businesses making an application under this Part and an explanation of whether each business ultimately located the project in this State regardless of whether the business was awarded a grant for the project under this Part. A listing, itemized by development tier, of the number of offers that have been calculated, estimated, or extended but were not accepted and the total award value of the offers. Repealed by Session Laws 2006-168, s. 1.4, effective July 27, 2006. The total amount transferred to the Utility Account under this Part during the preceding year. Repealed by Session Laws 2012-142, s. 13.4(f), effective July 1, 2012. Study. - The Committee shall conduct a study to determine the minimum funding level required to implement the Job Development Investment Grant Program successfully. The Committee shall report the results of this study to the House of Representatives Finance Committee, the Senate Finance Committee, the House of Representatives Appropriations Subcommittee on Natural and Economic Resources, the Senate Appropriations Committee on Natural and Economic Resources, and the Fiscal Research Division no later than April 1 of each year. A business may apply, in one consolidated application in a form and manner determined by the Committee, for a grant that may include performance by related members of the business who may qualify under this Part. The Committee will consider an application by a business for a grant that includes performance of its related members only if the related members for whom the application is submitted assign to the business any claim of right the related members may have under this Part to apply for grants individually during the term of the agreement and agree to cooperate with the business in providing to the Committee all the information required for the initial application and the agreement, and any other information the Committee may require for the purposes of this Part. The applicant business is responsible for providing to the Committee all the information required under this Part. If a business applies for a grant that includes performance by its related members, the related members included in the application may be permitted to meet the qualifications for a grant collectively by participating in a project that meets the requirements of this Part. The amount of a grant may be calculated under the terms of this Part as if the related members were all collectively one business entity. Any conditions for a grant, other than the number of eligible positions created, apply to each related member who is listed in the application as participating in the project. The grant awarded shall be paid to the approved grantee business only. A grant received under this Part by a business may be apportioned to the related members in a manner determined by the business. In order for an agreement to be executed, each related member included in the application must sign the agreement and agree to abide by its terms. History (2002-172, s. 2.1(a); 2003-416, s. 2; 2005-429, s. 2.1; 2006-168, s. 1.4; 2006-252, s. 2.8; 2006-264, s. 69(c); 2009-394, s. 2; 2010-31, s. 14.8; 2012-142, s. 13.4(f); 2013-360, ss. 15.18(f), 15.19(b), 15.20(a); 2015-259, s. 1(d); 2015-264, s. 91(a); 2018-5, s. 15.1(c).) Editor's Note. - Session Laws 2006-264, s. 69(c) was repealed, pursuant to the terms of Session Laws 2006-264, s. 69(g), upon Session Laws 2006-168, which amended this section, becoming law. Session Laws 2013-360, s. 15.18(i), made the amendment to subdivision (c)(13) by Session Laws 2013-360, s. 15.18(f), applicable to projects for which funds are initially provided on or after July 1, 2013. Session Laws 2013-360, s. 15.19(c), made the amendment to subsection (b) by Session Laws 2013-360, s. 15.19(b), applicable to applications and awards made on or after July 1, 2013. Session Laws 2013-360, s. 15.20(b), made the amendment to subsection (b) by Session Laws 2013-360, s. 15.20(a), applicable to applications and awards made 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. 38.5, is a severability clause. Session Laws 2018-5, s. 15.1(g), made the amendment of subsection (b) of this section by Session Laws 2018-5, s. 15.1(c), effective June 12, 2018, and applicable to applications received 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 2005-429, s. 2.1, effective September 22, 2005, added subdivisions (c)(3a) and (c)(13). Session Laws 2006-168, s. 1.4, effective July 27, 2006, in subdivision (a)(4), substituted "for the project" for "during the base years and thereafter" in the middle; in subdivision (a)(6), deleted "all" following "insurance to" near the middle and added "as required by G.S. 143B-437.53(c)" at the end; and deleted former subdivision (c)(12) which read: "The division and use of fees collected by the Committee under this section and under G.S. 143B-437.58." Session Laws 2006-252, s. 2.8, effective January 1, 2007, substituted "development" for "enterprise" in subdivision (c)(3). Session Laws 2009-394, s. 2, effective July 31, 2009, in subsection (a), in the second paragraph, substituted "that may include performance by" for "on its own behalf as a business and for grants on behalf of the", in the third paragraph, in the first sentence, substituted "a grant that includes performance by" for "grants on behalf" near the beginning, "assign" for "have assigned" and "agree" for "have agreed" near the middle, in the fourth paragraph, substituted "that includes performance" for "on behalf of" in the first sentence, and "grant awarded shall be paid to the approved grantee business only" for "grants awarded shall be paid to the applicant business" in the fourth sentence; in subdivision (c)(1), substituted "grant awarded" for "community economic development agreement negotiated and entered into" near the beginning, and "the grant, the percentage of withholdings used to determine the amount of the grant, the annual maximum State liability under the grant, and the maximum total lifetime State liability under the grant" for "the agreement, the percentage used to determine the amount of the grant, and the amount of the grant made under the agreement during that year" at the end; in subdivision (c)(2), substituted "grants awarded" for "agreements entered into"; in subdivision (c)(3), inserted "to be" and substituted "have been awarded" for "were awarded"; in subdivision (c)(4), inserted "to be" and substituted "have been awarded" for "are awarded" and "ten thousand dollars ($10,000) or other appropriate increments" for "five thousand dollars ($5,000)"; in subdivision (c)(5), substituted "have been awarded" for "were awarded"; in subdivision (c)(6), added "For the first annual report after adoption of" at the beginning and substituted "Part, a copy of such criteria, and, for subsequent reports, identification of" for "Part and"; rewrote subdivision (c)(7); deleted subdivision (c)(10), which read: "An explanation of whether the projects with respect to which agreements are entered into involve new businesses in the State or expanding existing businesses in the State."; and, in subsection (d), substituted "grant awarded" for "community economic development agreement negotiated and entered into" in the second sentence. Session Laws 2010-31, s. 14.8, effective July 1, 2010, added the second sentence in subsection (c); added the last sentence in subsection (d); and substituted "April 1" for "March 1" in the last sentence of subsection (e). Session Laws 2012-142, s. 13.4(f), effective July 1, 2012, repealed subsection (d) which read: "Quarterly Reports. - The Committee shall publish a report on the Job Development Investment Grant Program within two months of the end of each quarter. This report shall include a listing of each grant awarded during the preceding quarter, including the name of the business, the cost/benefit analysis conducted by the Committee during the application process, a description of the project, and the amount of the grant expected to be made under the agreement during the current fiscal year. The Committee shall submit the report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division." Session Laws 2013-360, s. 15.18(f), effective July 1, 2013, deleted "of the Industrial Development Fund" following "Utility Account" in subdivision (c)(13). For applicability, see Editor's note. Session Laws 2013-360, s. 15.19(b), effective July 1, 2013, added the last two sentences in subsection (b); and added subdivisions (b)(1) through (b)(3). For applicability, see Editor's note. Session Laws 2013-360, s. 15.20(a), effective August 1, 2013, substituted "ten thousand dollars ($10,000)" for "five thousand dollars ($5,000)" in subsection (b). For applicability, see Editor's note. Session Laws 2015-259, s. 1(d), effective September 30, 2015, added subdivision (c)(11a). Session Laws 2018-5, s. 15.1(c), in the first sentence of subsection (b), added "if the project is either a high-yield project or transformative project, regardless of location in the State, or is located in a development tier three area, (ii) five thousand dollars ($5,000) if the project is located in a development tier two area, or (iii) one thousand dollars ($1,000) if the project is located in a development tier one area" and made a stylistic change. For effective date and applicability, see editor's note.