A BILL TO BE ENTITLED
AN ACT relating to regional economic development commissions.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 158‑8.1 reads as rewritten:
"§ 158‑8.1.  Creation of Western North Carolina Regional Economic Development Commission.
(a)	There is created the Western North Carolina Regional Economic Development Commission to serve Buncombe, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, McDowell, Macon, Madison, Polk, Rutherford, Swain, Transylvania, and Yancey Counties, and any other county assigned to the Commission by the Department of Commerce as authorized by law. The Commission shall be located administratively in the Department of Commerce but shall exercise its statutory powers and duties independently of the Department of Commerce. Funds appropriated for the Commission by the General Assembly shall be disbursed directly to the Commission at the beginning of each fiscal year.
(b)	The Commission shall consist of 19 members appointed as follows:
(1)	Three members shall be appointed by the Governor;
(2)	Two members shall be appointed by the Lieutenant Governor;
(3)	Seven members 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; and
(4)	Seven members shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121.
(c)	The appointing authority shall designate two of the initial appointees pursuant to subdivision (b)(1), one of the initial appointees pursuant to subdivision (b)(2), two of the initial appointees pursuant to subdivision (b)(3), and two of the initial appointees pursuant to subdivision (b)(4) to serve for terms ending June 30, 1995; the remainder of the initial appointees shall serve for terms ending June 30, 1997. Their successors shall serve for four‑year terms ending on June 30 quadrennially thereafter. The appointing authority shall designate the additional appointees under subsections (b3) and (b4) that were added to the Commission membership pursuant to an act of the 1995 General Assembly to serve for terms ending June 30, 1999.
Any appointment to fill a vacancy on the Commission shall be for the balance of the unexpired term. Vacancies in appointments made by the General Assembly shall be in accordance with G.S. 120‑122.
(c1)	The initial meeting shall be called by the Secretary of the Department of Commerce.
(d)	Members of the Commission who are State employees shall receive travel expenses as provided in G.S. 138‑6. Other Commission members shall receive per diem of one hundred dollars ($100.00) a day for each day of service when the Commission meets and shall be reimbursed for travel and subsistence as provided in G.S. 138‑5. The Commission may adopt policies authorizing additional per diem of one hundred dollars ($100.00) a day for non‑State employee members' additional days of service including Commission subcommittee meetings or other Commission activities, plus reimbursement for related travel and subsistence as provided in G.S. 138‑5.
(e)	In addition to the powers and duties granted to economic development commissions in this Article, the Western North Carolina Regional Economic Development Commission shall:
(1)	Survey Western North Carolina and determine the assets, liabilities, and resources that the region contributes to the economic development process.
(2)	Develop and evaluate alternatives for Western North Carolina economic development.
(3)	Develop a preferred economic development plan for the region and establish strategies for implementing the plan.
	(5)	Repealed by Session Laws 1999‑237, s. 16.5(a).
(f)	The Commission is subject to all provisions of this Article except where inconsistent with the provisions of this section."
SECTION 2.  G.S. 158‑8.2 reads as rewritten:
"§ 158‑8.2.  Creation of Northeastern North Carolina Regional Economic Development Commission.
(a)	There is created the Northeastern North Carolina Regional Economic Development Commission to facilitate economic development in Beaufort, Bertie, Camden, Chowan, Currituck, Dare, Gates, Halifax, Hertford, Hyde, Martin, Northampton, Pasquotank, Perquimans, Tyrrell, and Washington Counties, and any other county assigned to the Commission by the Department of Commerce as authorized by law. The Commission shall be located administratively in the Department of Commerce but shall exercise its statutory powers and duties independently of the Department of Commerce. Funds appropriated for the Commission by the General Assembly shall be disbursed directly to the Commission at the beginning of each fiscal year.
(b)	The Commission shall consist of 18 appointed members and one ex officio member, as provided below. Each appointed member shall be an experienced business person who resides for most of the year in one or more of the counties that are members of the Commission.
(1)	Six members shall be appointed by the Governor.
(2)	Six members shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121.
(3)	Six members 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.
(4)	The Secretary of Commerce, or a designee.
(5)	Repealed by Session Laws 1999‑237, s. 16.6(a).
Any person appointed to the Commission who is also a county commissioner may hold that office in addition to the offices permitted by G.S. 128‑1.1. The appointing authorities are encouraged to discuss and coordinate their appointments in an effort to ensure as many counties served by the Commission are represented among the membership of the Commission.
(c)	All members shall serve staggered two‑year terms ending on June 30 biennially.
(d)	Any appointment to fill a vacancy on the Commission shall be for the balance of the unexpired term. Vacancies in appointments made by the General Assembly shall be in accordance with G.S. 120‑122.
(d1)	The initial meeting shall be called by the Secretary of the Department of Commerce. The Commission shall meet no less than quarterly.
(e)	The Commission shall elect annually from among its membership a four‑member executive committee consisting of a chair, a vice‑chair, a secretary, and a treasurer. Members shall serve one‑year terms on the executive committee. The executive committee shall meet no less than quarterly.
(f)	In addition to the powers and duties granted to economic development commissions in this Article, the Northeastern North Carolina Regional Economic Development Commission shall:
(1)	Adopt and implement an economic development program, with the assistance of the economic development advisory board, as follows:
a.	Survey northeastern North Carolina and determine the assets, liabilities, and resources that the region contributes to the economic development process;
b.	Enhance economic development activities that use the area's natural resources;
c.	Develop and evaluate alternatives for northeastern North Carolina economic development;
d.	Develop a preferred economic development plan for the region and establish strategies for implementing the plan;
e.	Conduct feasibility studies to determine the nature and placement of economic developments for maximum economic impact;
f.	Identify potential sites for economic development; and
g.	Carry out other activities to develop and promote economic development.
(2)	Repealed by Session Laws 1999‑237, s. 16.6(a).
	(4)	Repealed by Session Laws 1999‑237, s. 16.5(b).
(g)	Within the limits of funds available, the Commission may hire and fix the compensation of any personnel necessary to its operations, contract with consultants for any services as it may require, and contract with the State of North Carolina or the federal government, or any agency or department thereof, for any services as may be provided by those agencies. The Commission shall hire an employee to serve as president and chief executive officer. The Commission may carry out the provisions of any contracts it may enter.
Within the limits of funds available, the Commission may lease, rent, purchase, or otherwise obtain suitable quarters and office space for its staff, and may lease, rent, or purchase necessary furniture, fixtures, and other equipment.
(h)	Members of the Commission who are State employees shall receive travel expenses as provided in G.S. 138‑6. Other Commission members shall receive per diem of one hundred dollars ($100.00) a day for each day of service when the Commission meets and shall be reimbursed for travel and subsistence as provided in G.S. 138‑5.
(i)	The Commission is subject to all provisions of this Article except where inconsistent with the provisions of this section."
SECTION 3.  G.S. 158‑8.3 reads as rewritten:
"§ 158‑8.3.  Creation of Southeastern North Carolina Regional Economic Development Commission.
(a)	There is created the Southeastern North Carolina Regional Economic Development Commission to serve Bladen, Brunswick, Columbus, Cumberland, Hoke, New Hanover, Pender, Richmond, Robeson, Sampson, and Scotland Counties, and any other county assigned to the Commission by the Department of Commerce as authorized by law. The Commission shall be located administratively in the Department of Commerce but shall exercise its statutory powers and duties independently of the Department of Commerce. Funds appropriated for the Commission by the General Assembly shall be disbursed directly to the Commission at the beginning of each fiscal year.
(b)	The Commission shall consist of 15 members appointed as follows:
(1)	Three members shall be appointed by the Governor;
(2)	Two members shall be appointed by the Lieutenant Governor;
(3)	Five members 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; and
(4)	Five members shall be appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120‑121.
(c)	The appointing authority shall designate two of the initial appointees pursuant to subdivision (b)(1) of this section, one of the initial appointees pursuant to subdivision (b)(2) of this section, two of the initial appointees pursuant to subdivision (b)(3) of this section, and two of the initial appointees pursuant to subdivision (b)(4) of this section to serve for terms ending June 30, 1995; the remainder of the initial appointees shall serve for terms ending June 30, 1997. Their successors shall serve for four‑year terms ending on June 30 quadrennially thereafter.
Any appointment to fill a vacancy on the Commission shall be for the balance of the unexpired term. Vacancies in appointments made by the General Assembly shall be filled in accordance with G.S. 120‑122.
(c1)	The initial meeting shall be called by the Secretary of the Department of Commerce.
(d)	Members of the Commission who are State employees shall receive travel expenses as provided in G.S. 138‑6. Other Commission members shall receive per diem of one hundred dollars ($100.00) a day for each day of service when the Commission meets and shall be reimbursed for travel and subsistence as provided in G.S. 138‑5. The Commission may adopt policies authorizing additional per diem of one hundred dollars ($100.00) a day for non‑State employee members' additional days of service including Commission subcommittee meetings or other Commission activities, plus reimbursement for related travel and subsistence as provided in G.S. 138‑5.
(e)	In addition to the powers and duties granted to economic development commissions in this Article, the Southeastern North Carolina Regional Economic Development Commission shall:
(1)	Survey southeastern North Carolina and determine the assets, liabilities, and resources that the region contributes to the economic development process;
(2)	Develop and evaluate alternatives for southeastern North Carolina economic development;
(3)	Develop a preferred economic development plan for the region and establish strategies for implementing the plan; and
	(5)	Repealed by Session Laws 1999‑237, s. 16.5(c).
(f)	Within the limits of funds available, the Commission may hire and fix the compensation of any personnel necessary to its operations, contract with consultants for any services as it may require, and contract with the State of North Carolina or the federal government, or any agency or department thereof, for any services as may be provided by those agencies. With the approval of any unit of local government, the Commission may contract to use officers, employees, agents, and facilities of the unit of local government. The Commission may carry out the provisions of any contracts it may enter.
Within the limits of funds available, the Commission may lease, rent, purchase, or otherwise obtain suitable quarters and office space for its staff, and may lease, rent, or purchase necessary furniture, fixtures, and other equipment.
(g)	The Commission is subject to all provisions of this Article except where inconsistent with the provisions of this section."
SECTION 4.  G.S. 158‑8.4 reads as rewritten:
"§ 158‑8.4.  Removal of commission members.
(a)	A commission created under G.S. 158‑8.1, 158‑8.2, or 158‑8.3 may, by majority vote, remove a member of the commission if that member does not attend at least eighty percent (80%) of the regularly scheduled meetings of the commission during any full year of service of that member on the board, except that absences excused by the commission due to serious medical or family circumstances shall not be considered. 
(b)	The Governor shall remove a member from a commission upon a finding that the member has violated the commission's policy on conflicts of interest, financial disclosure, and ethical behavior adopted pursuant to G.S. 158‑13.1.
(c)	A vacancy on a commission shall be filled in the same manner as the original appointment."
SECTION 5.  Article 2 of Chapter 158 of the General Statutes is amended by adding two new sections to read:
"§ 158-8.5.  Annual reporting requirement.
By February 15 of each fiscal year, the commissions created pursuant to G.S. 158‑8.1, 158‑8.2, 158‑8.3, 158‑33, the Charlotte Regional Partnership, Inc., the Piedmont Triad Partnership, and the Research Triangle Regional Partnership shall publish a report containing the information required by this section. The report shall also be submitted to the Department of Commerce, the Office of State Budget and Management, the Joint Legislative Commission on Governmental Operations, the Joint Legislative Economic Development Oversight Committee, and the Fiscal Research Division of the General Assembly.
(1)	A summary of the preceding year's program activities, objectives, and accomplishments.
(2)	The preceding fiscal year's itemized expenditures and fund sources.
(3)	A demonstration of how the commission's regional economic development and marketing strategy aligns with the State's overall economic development and marketing strategies.
(4)	A demonstration of how the commission's involvement in promotion activities have generated leads.
(5)	The most recent audited annual financial statement.
"§ 158‑8.6.  Condition on receipt of State funds.  
As a condition on the receipt of State funds, the Charlotte Regional Partnership, Inc., the Piedmont Triad Partnership, and the Research Triangle Regional Partnership shall agree to be subject to the provisions of this Article."
SECTION 6.  Article 2 of Chapter 158 of the General Statutes is amended by adding a new section to read:
"§ 158‑13.1.  Limitations; withholding of State funds.
(a)	All economic development commissions created under or pursuant to this Article are subject to the following conditions:
(1)	The commission shall develop and adopt written policies governing the compensation of employees of the commission that are not inconsistent with the compensation policies of Article 2 of Chapter 126 of the General Statutes.
(2)	The commission is subject to the public records requirements of Chapter 132 of the General Statutes.
(3)	The commission shall develop and adopt written policies governing purchasing and contracting by the commission that are not inconsistent with Article 3 of Chapter 143 of the General Statutes.
(4)	The commission is subject to the open meetings requirements of Article 33C of Chapter 143 of the General Statutes.
(5)	The commission may not create any nonprofit organization to assist with carrying out its powers and duties under this Article. If a nonprofit organization prohibited by this subdivision was created by the commission before the effective date of this subdivision, the commission may not further contract with the organization to carry out the powers and duties of the commission under this Article.
(6)	The commission shall create and implement a written policy regarding conflicts of interest, disclosure of financial interest, and ethical behavior consistent with Executive Order No. One issued on January 12, 2001. The commission shall submit the policy for approval to the North Carolina Board of Ethics and shall revise the policy upon the recommendation of the North Carolina Board of Ethics.
(b)	The Governor may withhold any State funds appropriated to a commission upon a finding that the provisions of this Article have been violated."
SECTION 7.  G.S. 158‑37 is amended by adding a new subsection to read:
"(c)	The Region is subject to the provisions of Article 2 of this Chapter where those provisions are not inconsistent with the provisions of this Article."
SECTION 8.  This act becomes effective July 1, 2006.