A BILL TO BE ENTITLED
AN ACT to extend the sunset on the Job Development Investment Grant Program; to allow the economic investment committee to enter into more agreements under the program; to make technical corrections; to expand the terms that must be included in agreements; To Authorize a study of the program by the general Assembly; and to Ease reporting requirements.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 143B‑437.62 reads as rewritten:
"§ 143B‑437.62.  Sunset.
The authority of the Committee to enter into new agreements expires January 1, 2007."
SECTION 2.  G.S. 143B‑437.52(b) reads as rewritten:
"(b)	Cap. – The maximum number of agreements the Committee may enter into each calendar year is 25."
SECTION 3.  G.S. 143B‑437.52(d) reads as rewritten:
"(d)	Measuring Employment. – For the purposes of subdivision (a)(1) of this section and G.S. 143B‑437.57(a)(11), the Committee may designate that the increase or maintenance of employment is measured at the level of a division or another operating unit of a business, rather than at the business level, if both of the following conditions are met:
(1)	The Committee makes an explicit finding that the designation is necessary to secure the project in this State.
(2)	The designation contains terms to ensure that the business does not create eligible positions by transferring or shifting to the project existing positions from another project of the business or a related member of the business."
SECTION 4.  G.S. 143B‑437.57(a) is amended by adding a new subdivision to read:
"(a)	Terms. – Each community economic development agreement shall include at least the following:
…
(25)	A provision encouraging the business to contract with small businesses headquartered in the State for goods and services."
SECTION 5.  G.S. 143B‑437.57 is amended by adding a new subsection to read:
"(c)	Agreement Binding. – A community economic development agreement is a binding obligation of the State and is not subject to State funds being appropriated by the General Assembly."
SECTION 6.  G.S. 143B‑437.58(a) reads as rewritten:
"(a)	No later than March 1 of each year, for the preceding grant year, every business that is awarded a grant under this Part shall submit to the Committee a report showing withholdings as a condition of its continuation in the grant program. In addition, the business shall submit to the Committee an annual payroll report showing the eligible positions that are created during the base years and the new eligible positions created during each subsequent year of the grant. Upon request of the Committee, the business shall also submit a copy of its State and federal tax returns. Payroll and tax information submitted under this subsection is tax information subject to G.S. 105‑259. When making a submission under this section, the business must pay the Committee a fee of one thousand five hundred dollars ($1,500). The fee is due at the time the submission is made. 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."
SECTION 7.  The General Assembly shall conduct a comprehensive systematic study of the Job Development Investment Grant Program.  The General Assembly may hire a consultant to perform the study required by this section.  There is appropriated from the General Fund to the General Assembly the sum of three hundred thousand dollars ($300,000) for the 2004‑2005 fiscal year to conduct this study.  The study shall be completed and submitted to the full 2005 General Assembly no later than April 1, 2005.  The study shall include an examination of the following:
(1)	The costs of the program on an aggregate basis, an enterprise tier area basis, and a project basis. This study shall include an examination of the amount spent per job on an aggregate basis, an enterprise tier area basis, and a project basis.
(2)	The costs of the program in relation to other State economic development incentive programs.
(3)	The costs of the program in relation to economic development programs located in nearby states and other states with which the State frequently competes for jobs.
(4)	The extent to which the program has been utilized in geographically diverse parts of the State and the extent to which the program has been utilized in urban, suburban, and rural settings.
(5)	Any other matter the General Assembly finds relevant to a study of the program.
SECTION 8.  Sections 5 and 6 of this act become effective October 31, 2002.  Section 4 of this act is effective when it becomes law and applies to agreements entered into on or after that date.  The remainder of this act is effective when it becomes law.