A BILL TO BE ENTITLED
AN ACT TO CREATE THE NORTH CAROLINA BUSINESS INCUBATION AUTHORITY.
Whereas, unemployment rates vary considerably from one region of the State to the next; and 
Whereas, the creation of more and better job opportunities for North Carolinians at all age and skill levels in all regions of the State are a top priority in relation to balanced growth considerations; and 
Whereas, small businesses of all kinds are the primary sources of employment throughout the State, and they are likely to remain the primary sources of employment in the future; and 
Whereas, scientific and technical advances in general flowing from research and academic institutions can be applied to the development of existing and new small businesses throughout the State; and 
Whereas, principal growth in employment has come from the introduction of new technology; and 
Whereas, adequate capital and affordable space for the research activities of existing and new small businesses are key ingredients to the development of new and existing small businesses; and 
Whereas, partnerships between State and local government, financial institutions, business, labor, and research and academic institutions provide the most effective means for utilizing technological resources to create new jobs throughout the State; Now, therefore, 
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 143B‑433(a)(10) is amended by inserting a new sub‑subdivision to read: 
"w.	The North Carolina Business Incubation Authority."
SECTION 2.  Article 10 of Chapter 143B of the General Statutes is amended by adding a new Part to read: 
"Part 20. North Carolina Business Incubation Authority. 
"§ 143B-472.100.  Creation.
The North Carolina Business Incubation Authority is created to increase the rate at which new jobs are created in all regions of the State by stimulating the development of existing and new small businesses. The Authority shall be administratively located within the Department of Commerce but shall exercise its powers independently of the head of that department, as if it had been transferred to the Department of Commerce by a Type II transfer as defined in G.S. 143A-6(b). 
"§ 143B-472.101.  Governing body.
(a)	The governing body of the Authority is a board composed of 12 members, four of whom shall be appointed by the Governor, four of whom shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate under G.S. 120‑121, and four of whom shall be appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120‑121. Consideration should be given to the appointment of persons, including minorities and females, with technical expertise as well as experience in entrepreneurial business development. Each appointing authority shall include among its appointees at least one individual nominated by the North Carolina Business Incubation Association, Inc. 
(b)	Members serve four-year terms effective July 1, 2003, and quadrennially thereafter, except that each appointing authority shall designate two of its initial appointees to serve an initial term of two years effective July 1, 2003. No person may serve more than two consecutive four-year terms. 
(c)	Vacancies shall be filled by the original appointing authority to serve the remainder of the unexpired term. 
"§ 143B-472.102.  Officers; meetings.
(a)	The Governor shall appoint a chair from the members of the Authority. The Authority shall elect from among its members a vice-chair and shall elect a secretary. 
(b)	The Authority shall meet at the call of the chair, upon the written call of the majority of its members, or upon resolution of the Authority. 
(c)	A quorum shall consist of seven members of the Authority. 
"§ 143B-472.103.  Compensation.
Members of the Authority shall receive per diem and travel and subsistence expense in accordance with G.S. 138‑5. 
"§ 143B-472.104.  Duties and powers.
(a)	Duties. – The Authority is responsible for all levels of business incubation in the State. Accordingly, it has the following duties:
(1)	Serve as an advocate for an environment favorable to small business incubators.
(2)	Assist nonprofit corporations, community colleges, and universities seeking to operate business incubators.
(3)	Facilitate the State's goals in job creation and technology transfer.
(4)	Share collective knowledge and expertise for developing and operating business incubator facilities.
(5)	Place special emphasis on high‑technology companies and entrepreneurs.
(6)	Stimulate innovation and promote economic growth.
(b)	Powers. – The Authority has the following powers: 
(1)	Exercise the powers granted business corporations under Chapter 55 of the General Statutes.
(2)	Employ an executive director, whose salary shall be set by the Governor and the Authority, after consultation with the Advisory Budget Commission. The Authority may employ any other professional staff and clerical and secretarial staff it considers necessary within the funds available to it. The salaries of the other personnel shall be set under the State Personnel Act.
(3)	Establish an office for the transaction of its business at Raleigh.
(4)	Apply for and accept grants of money from the State of North Carolina, or any political subdivision thereof, from the United States, or from any person, corporation, foundation, trust, or business or from any foreign government for any of the purposes authorized by this Part.
(5)	Establish and administer the incubator facilities program.
(6)	Adopt reasonable rules to effectuate the purposes of this Part. 
"§ 143B-472.105.  Incubator facilities program.
(a)	Definitions. – The following definitions apply in this Part:
(1)	Incubator facility. – A building that provides space and support services for small business concerns that are beginning.
(2)	Small business concern. – Defined in the federal Small Business Act, 15 U.S.C. § 632, and regulations adopted under the act.
(b)	Consultation. – In carrying out the incubator facilities program, the Authority shall consult with the North Carolina Business Incubation Association, Inc.
(c)	Sites. – The Authority shall establish one or more incubator facilities at sites it selects within the State. The criteria the Authority uses in selecting sites shall include all of the following:
(1)	The unemployment rate.
(2)	The need for industrial and economic diversification and development.
(3)	The interest by the locality in the establishment of an incubator facility in the area as manifested by grants from public and private sources and cooperation agreements between local government, business, labor, and educational institutions demonstrating the probability of the success of the incubator facility.
(d)	Grants. – The Authority may make one‑time grants to establish incubator facilities. A grant may not exceed two hundred thousand dollars ($200,000). The recipient must match the grant on a dollar‑for‑dollar basis with non‑State funds or property. 
(e)	Eligibility. – Only nonprofit corporations that are affiliated with local universities, colleges, community colleges, or technical institutes or combinations thereof to advance the educational and research programs of these institutions are eligible to receive a grant from the Authority. Pursuant to rules adopted by the Authority, the grantee must do all of the following: 
(1)	Manage and maintain the incubator facility.
(2)	Develop a mechanism to provide technical, management, and entrepreneurial expertise to resident small business concerns and to small business concerns throughout the area.
(3)	Abide by rules adopted by the Authority. 
(f)	Facility. – The incubator facility and any improvements shall be owned by the State but may be leased to the grantee. Small business concern residents of the facility may be provided secretarial and other support facilities and utilities for which the grantee may charge them a part or all of the cost. No small business concern may remain in the facility for more than two years. Notwithstanding any other provision of law, the State is not liable for any act or failure to act of any organization granted funds under this Part, or any small business concern benefiting from the incubator facilities program." 
SECTION 3.  G.S. 120‑123 is amended by adding a new subdivision to read: 
"(77)	The North Carolina Business Incubation Authority as created by G.S. 143B‑472.100." 
SECTION 4.  There is appropriated from the General Fund to the Department of Commerce the sum of one hundred fifty thousand dollars ($150,000) for the 2003‑2004 fiscal year and the sum of one hundred fifty thousand dollars ($150,000) for the 2004‑2005 fiscal year to fund the North Carolina Business Incubation Authority created by this act.
SECTION 5.  This act becomes effective July 1, 2003.