A BILL TO BE ENTITLED
AN ACT to clarify provisions in the local development act, to clarify urban progress zones and agrarian growth zones, to allow more than one agrarian growth zone in a county, to clarify when the last report is due for the repealed lee act credits, and to make technical changes concerning the tax credits for growing businesses.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 158‑7.1(b)(4) reads as rewritten:
"(b)	A county or city may undertake the following specific economic development activities. (This listing is not intended to limit by implication or otherwise the grant of authority set out in subsection (a) of this section). The activities listed in this subsection may be funded by the levy of property taxes pursuant to G.S. 153A‑149 and G.S. 160A‑209 and by the allocation of other revenues whose use is not otherwise restricted by law.
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(4)	A county or city may acquire, construct, convey, or lease a building suitable for industrial or commercial use."
SECTION 2.  G.S. 143B‑437.09(a) reads as rewritten:
"(a)	Urban Progress Zone Defined. – An urban progress zone is an area that meets all of the following conditions:
(1)	It is comprised of part or all of one or more contiguous census tracts, census block groups, or both, in the most recent federal decennial census.
(2)	All of the area is located in whole within the primary corporate limits of a municipality with a population in excess of 10,000 according to the most recent annual population estimates certified by the State Budget Officer.
(3)	Every census tract and census block group that comprises the area meets one of the following conditions:
a.	It has a population that meets the poverty level threshold. The population of a census tract or census block group meets the poverty level threshold if more than twenty percent (20%) of its population is below the poverty level according to the most recent federal decennial census.
b.	It is located adjacent to a census tract or census block group whose population meets the poverty level threshold and at least fifty percent (50%) of the part of it that is included in the area is zoned as nonresidential. No more than thirty‑five percent (35%) of the area of a zone may consist of census tracts or census block groups that meet this condition.
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SECTION 3.  G.S. 143B‑437.10 reads as rewritten:
"§ 143B‑437.10.  Agrarian growth zone designation.
(a)	Agrarian Growth Zone Defined. – An agrarian growth zone is an area that meets all of the following conditions:
(1) 	It is comprised of one or more contiguous census tracts, census block groups, or both, in the most recent federal decennial census.
(2)	All of the area is located in whole within a county that has no municipality with a population in excess of 10,000 according to the most recent annual population estimates certified by the State Budget Officer.
(3)	Every census tract and census block group that comprises the area has more than twenty percent (20%) of its population below the poverty level according to the most recent federal decennial census.
	(b)	Limitation and Designation. – The area of a county that is included in one or more agrarian growth zones shall not exceed five percent (5%). Upon application of a county, the Secretary of Commerce shall make a written determination whether an area is an agrarian growth zone that satisfies the conditions of subsection (a) of this section. The application shall include all of the information listed in this subsection. A determination under this section is effective until December 31 of the year following the year in which the determination is made. The Department of Commerce shall publish annually a list of all agrarian growth zones with a description of their boundaries.
(1)	A map showing the census tracts and block groups that would comprise the zone.
(2)	A detailed description of the boundaries of the area that would comprise the zone.
(3)	A certification regarding the size of the proposed zone.
(4)	Detailed census information on the county and the proposed zone.
(5)	A resolution of the board of county commissioners requesting the designation of the area as an agrarian growth zone.
(6)	Any other material required by the Secretary of Commerce.
(c)	Parcel of Property Partially in Agrarian Growth Zone. – For the purposes of this section, a parcel of property that is located partially within an agrarian growth zone is considered entirely within the zone if all of the following conditions are satisfied:
(1)	At least fifty percent (50%) of the parcel is located within the zone.
(2)	The parcel was in existence and under common ownership prior to the most recent federal decennial census.
(3)	The parcel is a portion of land made up of one or more tracts or tax parcels of land that is surrounded by a continuous perimeter boundary."
SECTION 4.  G.S. 105‑129.2A(d) reads as rewritten:
"(d)	Report. – The Department of Commerce shall report the results of these studies and its recommendations to the General Assembly biennially with the first report due by April 1, 2001, and the last report due by June 1, 2007."
SECTION 5.  Section 1.5 of S.L. 2006‑252 reads as rewritten:
"SECTION 1.5.  Section 1.1 of this part is effective for taxable years beginning on or after January 1,2007, and for business activities that occur on or after January 1, 2007.  The remainder of this part is effective when it becomes law."
 SECTION 6.  This act is effective when it becomes law.