GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 158

Short Title:  Industrial Development Fund.	(Public)
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Sponsors: Representatives Lineberry; Beall, Bowen, Bowman, Chapin, DeVane, Diamont, B. Ethridge, Fitch, Hardaway, Hasty, Jack Hunt, Judy Hunt, H. Hunter, Jeralds, Kennedy, Mercer, Mills, Perdue, Redwine, Rogers, Stamey, Stewart, Warner, Warren, and Woodard.
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Referred to:  Commerce.
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February 6, 1989

A BILL TO BE ENTITLED
AN ACT TO APPROPRIATE FUNDS FOR THE INDUSTRIAL DEVELOPMENT FUND AND TO REFINE THE SCOPE OF THE INDUSTRIAL DEVELOPMENT FUND GRANT PROGRAM TO APPLY TO PROJECTS THAT WILL DIRECTLY RESULT IN NEW JOBS IN THE MOST ECONOMICALLY DISTRESSED COUNTIES IN THE STATE.
Whereas, the Industrial Development Fund was created by the General Assembly in 1987 to assist the local governments of the 50 most economically depressed counties in the State; and
Whereas, during the 1987-89 fiscal biennium the Industrial Development Fund has provided vital assistance for renovations of existing buildings and utility lines for use in manufacturing and industrial expansion; and
Whereas, such projects have helped the economy of the depressed counties and of the State as a whole by creating thousands of new jobs; and
Whereas, the State will benefit from continuing the program and targeting its resources to projects that will directly result in new jobs in those counties that have not shared in the prosperity experienced by the State as a whole and in the most economically distressed counties in the State; Now, therefore,
The General Assembly of North Carolina enacts:
Section 1.  Part 2 of Article 10 of Chapter 143B of the General Statutes is amended by adding at the end a new section to read:
"§ 143B-437.1.  Industrial Development Fund.
There is created in the Department of Commerce the Industrial Development Fund to provide funds to assist the local government units of the most economically depressed 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:
(1)	The funds shall be used for (i) installation of or purchases of manufacturing equipment or process productions equipment, (ii) structural repairs, improvements, or renovations of existing buildings to be used for manufacturing and industrial expansion, and/or (iii) construction of or improvements to new or existing water, sewer, gas, or electrical utility distribution lines or equipment for existing industrial buildings or for buildings to be constructed for manufacturing and industrial operations.  To be eligible for funding, the water, sewer, gas, or electrical utility lines or facilities 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 specific manufacturing activity.
(2)	The funds shall be used by the city and county governments for projects that will directly result in the creation of new jobs.  The funds shall be expended at a rate of one thousand five hundred dollars ($1,500) per new job created up to a maximum of five hundred thousand dollars ($500,000) per project.
(3)	The funds may be used by the city or county governments in accordance with rules to be issued by the Department of Commerce governing the use of funds and eligibility for grants under this program.
Each year, on or before December 31, the Secretary of Commerce shall designate the most economically distressed counties in the State; this designation shall remain effective for the following calendar year.  The Secretary of Commerce shall determine which counties are the most economically distressed counties in the State based on (i)	rate of unemployment, (ii) per capita income, and (iii) relative population and work force growth or lack of growth, as determined by the Secretary of Commerce.
The Department of Commerce shall report annually to the General Assembly concerning the applications made to the fund and the payments made from the fund and the impact of the payments on job creation in the State.  The Department of Commerce shall also report monthly to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on to whom payments were made, in what amounts, and for what purposes."
Sec. 2.  There is appropriated from the General Fund to the Department of Commerce the sum of fifteen million dollars ($15,000,000) for the 1989-90 fiscal year to be used for the Industrial Development Fund established in G.S. 143B-437.1.
Sec. 3.  This act shall become effective July 1, 1989.