GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 1214*

Short Title:  Economic Development Funds.	(Public)
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Sponsors: Representatives H. Hunter, Blue, Barnhill, Braswell, D. Brown, Burton, Cummings, Cunningham, Fitch, Gist, Green, Kennedy, McAllister, Michaux, Oldham, Wainwright, Kinney, and Wright.
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Referred to:  Appropriations.
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April 28, 1993

A BILL TO BE ENTITLED
AN ACT TO APPROPRIATE FUNDS FOR ECONOMIC DEVELOPMENT PROJECTS AND ACTIVITIES WITHIN THE STATE'S MINORITY COMMUNITY.
The General Assembly of North Carolina enacts:
Section 1.  (a)	There is appropriated from the General Fund to the Rural Economic Development Center, Inc., the sum of three million dollars ($3,000,000) for the 1993-94 fiscal year and the sum of three million dollars ($3,000,000) for the 1994-95 fiscal year, to be allocated for grants to local community development corporations as defined in subsection (c) of this section.  These funds shall be used to support community development projects and activities within the State's minority community.
(b)	Any community development corporation as defined in subsection (c) of this section is eligible to apply for funds under this section.  The Rural Economic Development Center, Inc., shall decide whether an applying community development corporation will receive a grant and the amount of the grant.  In making this decision, the Rural Economic Development Center, Inc., shall establish and implement performance-based criteria and award grants to community development corporations based on past performance and demonstrated capacity to engage in community development projects and activities.  The Rural Economic Development Center, Inc., shall establish and implement criteria for newly created community development corporations to receive grants, based on the community development corporations' potential to leverage community development projects in their communities.
The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of the funds allocated in this section.
(c)	For purposes of this section, the term "community development corporation" means a nonprofit corporation:
(1)	Chartered pursuant to Chapter 55A of the General Statutes;
(2)	Tax-exempt pursuant to section 501(c) (3) of the Internal Revenue Code of 1986;
(3)	Whose primary mission is to develop and improve low-income communities and neighborhoods through economic and related development;
(4)	Whose activities and decisions are initiated, managed, and controlled by the constituents of those local communities; and
(5)	Whose primary function is to act as deal-maker and packager of projects and activities that will increase their constituencies' opportunities to become owners, managers, and producers of small businesses, affordable housing, and jobs designed to produce positive cash flow and curb blight in the target community.
The term "community development corporation" does not include nonprofit organizations whose sole purpose is to provide housing to neighborhoods or technical assistance to other nonprofit organizations.
Sec. 2.  There is appropriated from the General Fund to the North Carolina Association of Community Development Corporations, Inc., the sum of five hundred thousand dollars ($500,000) for the 1993-94 fiscal year and the sum of five hundred thousand dollars ($500,000) for the 1994-95 fiscal year to support project activities and to fund the North Carolina Association of Community Development Corporations' loan fund.  The North Carolina Association of Community Development Corporations shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of the funds allocated in this section.
Sec. 3.  There is appropriated from the General Fund to the North Carolina Association of Black Lawyers' Land Loss Prevention Project, Inc., the sum of seven hundred thousand dollars ($700,000) for the 1993-94 fiscal year and the sum of seven hundred thousand dollars ($700,000) for the 1994-95 fiscal year to provide free legal representation to low-income financially distressed small farmers.  The Land Loss Prevention Project shall not use these funds to represent farmers who have income and assets that would make them financially ineligible for legal services pursuant to Title 45, Part 1611 of the Code of Federal Regulations.  The Land Loss Prevention Project shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
Sec. 4.  There is appropriated from the General Fund to the North Carolina Coalition of Farm and Rural Families, a nonprofit corporation, the sum of five hundred thousand dollars ($500,000) for the 1993-94 fiscal year and the sum of five hundred thousand dollars ($500,000) for the 1994-95 fiscal year for its Small Farm Economic Development Project.  These funds shall be used to foster economic development within the State's rural farm communities by offering financial, marketing, and technical assistance to small and limited resource farmers.  The North Carolina Coalition of Farm and Rural Families shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
Sec. 5.  There is appropriated from the General Fund to the North Carolina Institute of Minority Economic Development, a nonprofit corporation, the sum of five hundred fifty thousand dollars ($550,000) for the 1993-94 fiscal year and the sum of five hundred fifty thousand dollars ($550,000) for the 1994-95 fiscal year to foster minority economic development within the State through policy analysis, information and technical assistance, and resource expansion.  The North Carolina Institute of Minority Economic Development shall:
(1)	Research and identify key issues affecting the economic well-being of the State's ethnic minority community and issue annual reports with appropriate recommendations;
(2)	Provide information and technical assistance to organizations with minority economic development-based projects in common areas of need and interests;
(3)	Develop a resource bank of data and information;
(4)	Facilitate training in appropriate areas of need; and
(5)	Provide technical assistance to minority construction contractors.
The North Carolina Institute of Minority Economic Development shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
Sec. 6.  There is appropriated from the General Fund to the Rural Economic Development Center, Inc., the sum of one million five hundred thousand dollars ($1,500,000) for the 1993-94 fiscal year and the sum of one million five hundred thousand dollars ($1,500,000) for the 1994-95 fiscal year to be allocated to local minority-owned and operated credit unions.  These funds shall be used to foster minority economic development within the State by increasing the lending capacity of minority-owned and operated credit unions.
Sec. 7.  There is appropriated from the General Fund to the Rural Economic Development Center, Inc., the sum of three hundred thousand dollars ($300,000) for the 1993-94 fiscal year and the sum of three hundred thousand dollars ($300,000) for the 1994-95 fiscal year to be allocated to the North Carolina Minority Credit Union Support Center, Inc., for operational and administrative support.  The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
Sec. 8.  There is appropriated from the General Fund to the Rural Economic Development Center, Inc., the sum of six hundred fifty thousand dollars ($650,000) for the 1993-94 fiscal year and the sum of six hundred fifty thousand dollars ($650,000) for the 1994-95 fiscal year to support and expand operations of the Microenterprise Loan Program.  The Rural Economic Development Center, Inc., shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
Sec. 9.  There is appropriated from the General Fund to the North Carolina Association of Community Development Corporations, Inc., the sum of one million five hundred thousand dollars ($1,500,000) for the 1993-94 fiscal year and one million five hundred thousand dollars ($1,500,000) for the 1994-95 fiscal year to create and administer a predevelopment and equity loan fund.  These funds shall be used to foster minority economic development within the State by increasing the lending capacity of minority-owned and operated financial institutions, working as a consortium.  The North Carolina Association of Community Development Corporations shall report quarterly to the Joint Legislative Commission on Governmental Operations on the use of these funds.
Sec. 10.  There is appropriated from the General Fund to the Rural Economic Development Center, Inc., the sum of eighty thousand dollars ($80,000) for the 1993-94 fiscal year and the sum of eighty thousand dollars ($80,000) for the 1994-95 fiscal year to cover expenses in administering this act.  The Office of State Budget and Management shall allot the funds appropriated in Sections 6 and 8 of this act within 30 working days after receiving the Center's request for the funds.  The Rural Economic Development Center, Inc., shall distribute the funds appropriated in Sections 6 and 8 of this act immediately upon allotment by the Office of State Budget and Management.
Sec. 11.  The Rural Economic Development Center, Inc., shall not distribute funds appropriated in Sections 1, 6, 7, and 8 of this act until the entities eligible to receive funds under those sections have met the requirements of G.S. 143-6.1.
Sec. 12.  This act becomes effective July 1, 1993.