North Carolina § 143C-6-22 - Use of State funds by non-State entities.

§ 143C-6-22. Use of State funds by non-State entities.

Disbursement and Use of State Funds. - Every non-State entity that receives, uses, or expends any State funds shall use or expend the funds only for the purposes for which they were appropriated by the General Assembly. State funds include federal funds that flow through the State Treasury. Compliance by Non-State Entities. - If the Director of the Budget finds that a non-State entity has spent or encumbered State funds for an unauthorized purpose, or fails to submit or falsifies the information required by G.S. 143C-6-23 or any other provision of law, the Director shall take appropriate administrative action to ensure that no further irregularities or violations of law occur and shall report to the Attorney General any facts that pertain to an apparent violation of a criminal law or an apparent instance of malfeasance, misfeasance, or nonfeasance in connection with the use of State funds. Appropriate administrative action may include suspending or withholding the disbursement of State funds and recovering State funds previously disbursed. Civil Actions. - Civil actions to recover State funds or to obtain other mandatory orders in the name of the State on relation of the Attorney General, or in the name of the Office of State Budget and Management, shall be filed in the General Court of Justice in Wake County. History (2006-203, s. 3.) Rural Economic Development Center/Infrastructure Program. - Session Laws 2011-145, s. 14.17(a)-(d), as amended by Session Laws 2012-142, s. 13.14, provides: "(a) Of the funds appropriated in this act to the North Carolina Rural Economic Development Center, Inc. (Rural Center), the sum of thirteen million four hundred sixty-two thousand forty-three dollars ($13,462,043)) for the 2012-2013 fiscal year shall be allocated as follows: "(1) To continue the North Carolina Infrastructure Program. The purpose of the Program is to provide grants to local governments to construct critical water and wastewater facilities and to provide other infrastructure needs, including technology needs, to sites where these facilities will generate private job-creating investment. The grants under this Program shall not be subject to the provisions of G.S. 143-355.4 . "(2) To provide matching grants or loans to local governments in distressed areas that will productively reuse vacant buildings and properties, with priority given to towns or communities with populations of less than 5,000. "(3) To provide grants and technical assistance to reinvigorate the economies of towns with populations of less than 7,500, and to invest in economic innovation that stimulates business and job growth in distressed areas. "(4) Recipients of grant funds appropriated under this section shall contribute a cash match for the grant that is equivalent to at least five percent (5%) of the grant amount. The cash match 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. "(b) 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 grant to assist with water infrastructure needs is not subject to the provisions of G.S. 143-355.4 . "(c) For the 2012-2013 fiscal year, the Rural Center may use up to three percent (3%) of the funds appropriated in this section to cover its expenses in administering the North Carolina Economic Infrastructure Program. "(d) 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 North Carolina Economic Infrastructure Program in the prior State fiscal year." For prior provisions relating to the North Carolina Infrastructure Program, see Session Laws 2004-88, s. 2(a)-(f), Session Laws 2005-276, s. 13.12(a)-(f), as amended by Session Laws 2006-66, s. 12.3(b), Session Laws 2007-323, s. 13.13(a)-(d), and Session Laws 2009-451, s. 14.28(a)-(e), as amended by Session Laws 2010-31, s. 14.20. 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." 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. Non-State Entities/Report and Reversion Requirements. - Session Laws 2018-5, s. 6.2(a)-(c), provides: "(a) Definition. - For purposes of this section, the term 'non-State entity' is as defined in G.S. 143C-1-1 . "(b) Reporting Requirement. - Unless required to report on the use of funds under another provision of law, and by no later than June 30, 2019, each non-State entity receiving expansion funds appropriated in this act or S.L. 2017-57 for the 2018-2019 fiscal year shall submit a report to the Office of State Budget and Management and the Fiscal Research Division of the General Assembly that provides all of the following information: "(1) A description of how the funds are used or are to be used, including outcomes and specific deliverables achieved. "(2) The amount of State funds received and expended during the 2018-2019 fiscal year. "(3) The amount of State funds expended for administrative purposes during the 2018-2019 fiscal year, including the amount of State funds expended for salaries and benefits. "(4) For each employee, the amount of State funds used for the employee's annual salary. "(c) Funds Shall Not Revert. - Notwithstanding the date set forth in G.S. 143C-6-23(f1)(1) , expansion funds from the net General Fund appropriations or allocations in this act to a non-State entity shall not be subject to the return requirement set forth in G.S. 143C-6-23(f1)(1) until June 30, 2020." Editor's Note. - Session Laws 2006-203, s. 3, enacted this section as G.S. 143C-6-13 . It has been renumbered at the direction of the Revisor of Statutes. Session Laws 2007-323, s. 13.16, provides: "(a) The e-NC Authority may contract with other State agencies, The University of North Carolina, the North Carolina Community College System, and nonprofit organizations to assist with program development and the evaluation of program activities. "(b) The e-NC Authority shall report to the 2008 General Assembly on the following: "(1) The activities necessary to be undertaken in distressed urban areas of the State to enhance the capability of citizens and businesses residing in these areas to access high-speed Internet. "(2) An implementation plan for the training of citizens and businesses in distressed urban areas. "(3) The technology and digital literacy training necessary to assist citizens and existing businesses to create new technology-based enterprises in these communities and to use the Internet to enhance the productivity of their businesses. "The e-NC Authority shall, by September 30, 2007, and quarterly thereafter, report to the Joint Legislative Commission on Governmental Operations on program development and the evaluation of program activities." Session Laws 2008-107, s. 13.9(a)-(e) provides: "(a) Of the funds appropriated in this act to the North Carolina Rural Economic Development Center, Inc. (Rural Center), the sum of four million dollars ($4,000,000) for the 2008-2009 fiscal year shall be used to continue and expand the Rural Economic Transition Program for the following purposes: "(1) To provide grants to local governments for building reuse and restoration projects leading to job or business creation, including brownfield assessment and remediation projects leading to productive reuse, with priority given to towns or communities with populations of less than 10,000. "(2) To provide grants to support economic recovery and revitalization in small towns, with priority given to towns with populations less than 10,000 experiencing hardship posed by business losses, devastation from natural disasters, or persistent poverty. "(3) To provide grants for innovative local and regional economic development and agriculture diversification projects that spur business activity, job creation, or public or private investment. "(b) Priority for grant funds shall be given to eligible applicants in development tier one areas as defined in G.S. 143B-437.08 . "(c) The Rural Center may use a portion of the funds appropriated in this section, not to exceed two percent (2%), for administration of the programs for which funds are appropriated in this section. "(d) The Rural Center may contract with other agencies and institutions for certain aspects of the programs for which funds are appropriated in this section, including the design of program guidelines and evaluation of program results. "(e) The Rural Center shall report to the Joint Legislative Commission on Governmental Operations concerning the progress of the programs for which funds are appropriated in this section by July 1, 2009." Session Laws 2009-451, s. 14.27(a)-(e), as amended by Session Laws 2010-31, s. 14.19, provides for the allocation of funds appropriated to the North Carolina Rural Economic Development Center, funding for community development grants, defining of the term community development corporation, and multi-year reporting requirements. Specifically, subsections (d) and (e) provide: "(d) The Rural Center shall provide a report containing detailed budget, personnel, and salary information to the Office of State Budget and Management in the same manner as State departments and agencies in preparation for biennium budget requests. "(e) 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 on prior State fiscal year program activities, objectives, and accomplishments and prior State fiscal year itemized expenditures and fund sources." Session Laws 2009-451, s. 14.30(b), provides: "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 on OI Centers receiving funds pursuant to subsection (a) of this section. The report shall include data for each OI Center on all itemized expenditures and all fund sources for the prior State fiscal year. The report shall also contain a written narrative on prior fiscal year program activities, objectives, and accomplishments that were funded with funds appropriated in subsection (a) of this section." Session Laws 2009-451, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2009'." Session Laws 2009-451, s. 28.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2009-2011 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2009-2011 fiscal biennium." Session Laws 2009-451, s. 28.5, is a severability clause. 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 2017-57, s. 6.13(a)-(c), provides: "(a) Definition. - For purposes of this section, the term "non-State entity" is as defined in G.S. 143C-1-1 . "(b) Reporting Requirement. - Unless required to report on the use of funds under another provision of law, and by no later than June 30, 2018, each non-State entity receiving expansion funds appropriated in this act for the 2017-2018 fiscal year shall submit a report to the Office of State Budget and Management that provides all of the following information: "(1) A description of how the funds are used or are to be used, including outcomes and specific deliverables achieved. "(2) The amount of State funds received and expended during the 2017-2018 fiscal year. "(3) The amount of State funds expended for administrative purposes during the 2017-2018 fiscal year, including the amount of State funds expended for salaries and benefits. "(4) For each employee, the amount of State funds used for the employee's annual salary. "(c) Funds Shall Not Revert. - Notwithstanding the date set forth in G.S. 143C-6-23(f1)(1) , expansion funds from the net General Fund appropriations or allocations in this act to a non-State entity shall not be subject to the return requirement set forth in G.S. 143C-6-23(f1)(1) until June 30, 2019. Session Laws 2017-57, s. 15A.2(a)-(c), as amended by Session Laws 2017-197, s. 4.10(b) provides: "(a) The entities listed in subsection (c) of this section shall do the following for each year that State funds are expended: "(1) By September 1 of each year, and more frequently as requested, report to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, the chairs of the House of Representatives Appropriations Committee on Agriculture and Natural and Economic Resources, the chairs of the Senate Appropriations Committee on Agriculture, Natural, and Economic Resources, and the Fiscal Research Division on prior State fiscal year program activities, objectives, and accomplishments and prior State fiscal year itemized expenditures and fund sources. "(2) Provide to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, the chairs of the House of Representatives Appropriations Committee on Agriculture and Natural and Economic Resources, the chairs of the Senate Appropriations Committee on Agriculture, Natural, and Economic Resources, and the Fiscal Research Division a copy of the entity's annual audited financial statement within 30 days of issuance of the statement. "(b) Funds appropriated by this act to the North Carolina Coastal Federation for a crab pot cleanup program are not subject to Article 3 of Chapter 143 of the General Statutes. The North Carolina Coastal Federation may use up to ten percent (10%) of these funds for administrative and overhead costs. Funds not expended or encumbered by June 30, 2018, shall revert. The North Carolina Coastal Federation shall report on the total amount of funds used, including amount spent per crab pot recovered and amount paid to third parties utilized in the cleanup program, and any recommendations to improve the program, including mechanisms to reuse or repurpose recovered crab pots and to increase efficiency of the program, to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division on or before April 1, 2018. "(c) The following entities shall comply with the requirements of subsection (a) of this section: "(1) North Carolina Biotechnology Center. "(2) High Point Market Authority. "(3) RTI International. "(4) Blue Ridge Parkway Foundation. "(5) Carolina Small Business Development Fund. "(6) Cary Chamber of Commerce. "(7) First Flight Society. "(8) North Carolina Coastal Federation. "(9) Salvation Army of Winston-Salem. "(10) StepUp Ministry. "(11) Jim Shaw ACE Academy. "(12) Make a Difference in King. "(13) North Carolina Business Leadership Network. "(14) North Carolina's Eastern Alliance Corporation. "(15) Sturgeon City of Jacksonville, NC." "(16) Cleveland County ALWS Baseball, Inc." 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. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2017-2019 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2017-2019 fiscal biennium." Session Laws 2017-57, s. 39.6, is a severability clause. 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. Session Laws 2019-75, s. 1, provides: "Notwithstanding any provision of S.L. 2017-57, or of the Committee Report described in Section 39.2 of that act to the contrary, the sum of two hundred fifty thousand dollars ($250,000) in nonrecurring funds for the 2017-2018 fiscal year appropriated in that act to the Department of Military and Veterans Affairs for the construction of public facilities at the North Carolina Veterans Memorial Pavilion in Broadway, North Carolina, shall not revert on June 30, 2019, as required by Section 6.13(c) of that act, but shall remain available for expenditure until June 30, 2020."