A BILL TO BE ENTITLED
AN ACT Appropriating Funds to Regional councils of government to assist Local Governments on a Regional Basis  in the areas of Economic development, Community Development, infrastructure, and other significant local needs and to provide TARGETED assistance to aid local governments in distressed counties with economic recovery.
Whereas, North Carolina's regional  councils of government have provided effective assistance to local governments in every region of the State; and
Whereas, regional councils of government have been successful in leveraging the annual State appropriations into an impressive level of State and federal grants to benefit communities and citizens across the State and have used the annual State appropriation of $832,150 to obtain more than $44 million in State and federal grants each year; and
Whereas, North Carolina's regional councils of government bring local governments together to deal with economic growth and other common needs on a regional scale, playing a valuable role in bridging the gaps between rural and urban areas, as local governments' needs have expanded, especially in economically distressed counties and in growth areas; and
Whereas, regional councils of government help strengthen the attractiveness of North Carolina to businesses, tourists, and residents by assisting local governments with community development and economic development strategies, infrastructure, workforce, rural transportation, and other quality of life improvements but do not conflict with Regional Economic Development Partnerships whose main role is recruiting major industry; and
Whereas, regional councils of government are in an ideal position to help local governments in the State's most distressed areas develop and carry out projects to change economic conditions and restore hope to these communities; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  There is appropriated from the General Fund to the Department of Commerce the sum of one million seven hundred thousand dollars ($1,700,000) for each year of the 2007‑2009 fiscal biennium. Funds appropriated under this section shall be allocated to regional councils of government or lead regional organizations as provided by this section.  Each regional council of government or lead regional organization is allocated one hundred thousand dollars ($100,000) for each year of the 2007‑2009 fiscal biennium.
SECTION 2.  A regional council of government may use funds appropriated by Section 1 of this act only to assist local governments in grant applications, economic development, community development, support of local industrial development activities, infrastructure and water resource development, and other activities as deemed appropriate by the member governments. 
SECTION 3.  In addition to the appropriation made under Section 1 of this act, there is appropriated from the General Fund to the Department of Commerce the sum of eight hundred twenty thousand dollars ($820,000) to be allocated to regional councils of government to assist local government in development tier one areas, as defined in G.S. 143B‑437.08. The Department shall allocate to regional councils of government the sum of twenty thousand dollars ($20,000) for each tier one county within its region. Funds appropriated under this section shall be used only to assist local governments with planning, developing, and implementing economic development projects that are identified by those local governments as priorities critical to help them with economic recovery and to improve job and investment growth. 
SECTION 4.  Funds appropriated by this act shall be paid by electronic transfer in two equal installments each year, the first no later than September 1 of each year and the second subsequent to acceptable submission of the annual report due to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division by February 15 of each year as specified in Section 6 of this act.
SECTION 5.  Funds appropriated in this act shall not be used for payment of dues or assessments by the member governments and shall not supplant funds appropriated by the member governments.
SECTION 6.  Each regional council of government or lead regional organization shall do the following:
(1)	By February 15, 2008, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a.	State fiscal year 2006‑2007 program activities, objectives, and accomplishments;
b.	State fiscal year 2006‑2007 itemized expenditures and fund sources;
c.	State fiscal year 2007‑2008 planned activities, objectives, and accomplishments, including actual results through December 31, 2007; and
d.	State fiscal year 2007‑2008 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2007.
(2)	By February 15, 2009, and more frequently as requested, report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division the following information:
a.	State fiscal year 2007‑2008 program activities, objectives, and accomplishments;
b.	State fiscal year 2007‑2008 itemized expenditures and fund sources;
c.	State fiscal year 2008‑2009 planned activities, objectives, and accomplishments, including actual results through December 31, 2008; and
d.	State fiscal year 2008‑2009 estimated itemized expenditures and fund sources, including actual expenditures and fund sources through December 31, 2008.
(3)	Provide to the Fiscal Research Division a copy of the organization's annual audited financial statement within 30 days of issuance of the statement.
SECTION 7.  This act becomes effective July 1, 2007.