North Carolina § 143B-437 - 59. Failure to comply with agreement.

§ 143B-437. 59. Failure to comply with agreement.

If the business receiving a grant fails to meet or comply with any condition or requirement set forth in an agreement or with criteria developed by the Committee in consultation with the Attorney General, the Committee shall reduce the amount of the grant or the term of the agreement, may terminate the agreement, or both. The reduction in the amount or the term must, at a minimum, be proportional to the failure to comply measured relative to the condition or criterion with respect to which the failure occurred. The Committee may reduce the amount or term of a grant by formally approving a motion to reduce such grant in accordance with program policies adopted by the Committee for the treatment of failures by businesses to meet or comply with a condition or requirement set forth in the grant agreement, and it shall not be necessary to execute an amendment to the applicable grant agreement. The Committee shall notify any such affected business of the reduction to its grant payment, reflected in any such motion. If a business fails to maintain employment at the levels stipulated in the agreement or otherwise fails to comply with any condition of the agreement for any two consecutive years: If the business is still within the base period established by the Committee, the Committee shall withhold the grant payment for any consecutive year after the second consecutive year remaining in the base period in which the business fails to comply with any condition of the agreement, and the Committee may extend the base period for up to 24 additional months. Under no circumstances may the Committee extend the base period by more than a total of 24 months. In no event shall the term of the grant be extended beyond the date set by the Committee at the time the Committee awarded the grant. If the business is no longer within the base period established by the Committee, the Committee shall terminate the agreement. Notwithstanding the provisions of subsections (a) and (b) of this section, if the Committee finds that the business has manipulated or attempted to manipulate employee withholdings with the purpose of increasing the amount of a grant, the Committee shall immediately terminate the agreement and take action to recapture any grant funds disbursed in any year in which the Committee finds the business manipulated or attempted to manipulate employee withholdings with the purpose of increasing the amount of the grant. History (2002-172, s. 2.1(a); 2003-416, s. 2; 2006-168, s. 1.8; 2009-394, s. 5; 2010-91, s. 8.) Effect of Amendments. - Session Laws 2006-168, s. 1.8, effective July 27, 2006, substituted "business fails to comply with" for "Committee amends" near the end of the second sentence of subsection (a); in subsection (b), substituted "years:" for "years, the Committee shall terminate the agreement." at the end of the introductory paragraph, and added subdivisions (b)(1) and (b)(2). Session Laws 2009-394, s. 5, effective July 31, 2009, in subsection (a), in the first sentence, deleted "amend the agreement to" preceding "reduce the amount" near the middle, and substituted "the agreement, may terminate the agreement, or both" for "the agreement and may terminate the agreement" at the end, deleted the former second sentence, which read: "Any reduction of the grant is applicable to the grant year immediately following the grant year in which the business fails to comply with the agreement" and added the third and fourth sentences; and in subdivision (b)(1), inserted "after the second consecutive year" in the first sentence. Session Laws 2010-91, s. 8, effective July 11, 2010, and applicable to all agreements in effect on or entered into after that date, in the introductory paragraph in subsection (b), added the language beginning "the Committee shall take one of the following actions"; in subdivision (b)(1), inserted "in at least one of the two consecutive years in which it fails to comply with any condition in the agreement" and substituted "may extend the base period as provided in this subdivision" for "may extend the base period for up to 24 additional months. Under no circumstances may the Committee extend the base period by more than a total of 24 months. In no event shall the term of the grant be extended beyond the date set by the Committee at the time the Committee awarded the grant"; and added subdivisions (b)(1)a. and (b)(1)b.