State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_143B > GS_143B-437_01

§ 143B‑437.01. Industrial Development Fund.

(a)        Creation andPurpose of Fund. – There is created in the Department of Commerce theIndustrial Development Fund to provide funds to assist the local governmentunits of the most economically distressed counties in the State in creating andretaining jobs in certain industries. The Department of Commerce shall adoptrules providing for the administration of the program. Those rules shallinclude the following provisions, which shall apply to each grant from thefund:

(1)        The funds shall beused for (i) installation of or purchases of equipment for eligible industries,(ii) structural repairs, improvements, or renovations of existing buildings tobe used for expansion of eligible industries, or (iii) construction of orimprovements to new or existing water, sewer, gas, telecommunications, high‑speedbroadband, electrical utility distribution lines or equipment, ortransportation infrastructure for existing or new or proposed industrialbuildings to be used for eligible industries. To be eligible for funding, thewater, sewer, gas, telecommunications, high‑speed broadband, electricalutility lines or facilities, or transportation infrastructure shall be locatedon the site of the building or, if not located on the site, shall be directlyrelated to the operation of the specific eligible industrial activity.

(1a)      The funds shall beused for projects located in economically distressed counties except that theSecretary of Commerce may use up to one hundred thousand dollars ($100,000) toprovide emergency economic development assistance in any county that isdocumented to be experiencing a major economic dislocation.

(2)        The funds shall beused by the city and county governments for projects that will directly resultin the creation or retention of new jobs. The funds shall be expended at amaximum rate of ten thousand dollars ($10,000) per new job created or per jobretained up to a maximum of five hundred thousand dollars ($500,000) perproject.

(3)        There shall be no localmatch requirement if the project is located in a county that has one of the 25highest rankings under G.S. 143B‑437.08 or that has a population of lessthan 50,000 and more than nineteen percent (19%) of its population below thefederal poverty level according to the most recent federal decennial census.

(4)        The Department mayauthorize a local government that receives funds under this section to use upto two percent (2%) of the funds, if necessary, to verify that the funds areused only in accordance with law and to otherwise administer the grant or loan.

(5)        No project subjectto the Environmental Policy Act, Article 1 of Chapter 113A of the GeneralStatutes, shall be funded unless the Secretary of Commerce finds that theproposed project will not have a significant adverse effect on the environment.The Secretary of Commerce shall not make this finding unless the Secretary hasfirst received a certification from the Department of Environment and NaturalResources that concludes, after consideration of avoidance and mitigationmeasures, that the proposed project will not have a significant adverse effecton the environment.

(6)        The funds shall notbe used for any nonmanufacturing project that does not meet the wage standardset out in G.S. 105‑129.4(b).

(a1)      Definitions. – Thefollowing definitions apply in this section:

(1)        Air courierservices. – Defined in G.S. 105‑129.81.

(2)        Repealed by SessionLaws 2006‑252, s. 2.4, effective January 1, 2007.

(2a)      Company headquarters.– Defined in G.S. 105‑129.81.

(3)        Repealed by SessionLaws 2006‑252, s. 2.4, effective January 1, 2007.

(4)        (Effective untilJuly 1, 2012) Economically distressed county. – A county that is defined asa tier one or tier two county under G.S. 143B‑437.08 after theadjustments of that section are applied.

(4)        (Effective July1, 2012) Economically distressed county. – A county that has one of the 65highest rankings under G.S. 143B‑437.08 after the adjustments of thatsection are applied.

(5)        Eligible industry. –A company headquarters or a person engaged in the business of air courierservices, information technology and services, manufacturing, or warehousingand wholesale trade.

(6)        Informationtechnology and services. – Defined in G.S. 105‑129.81.

(7)        Major economicdislocation. – The actual or imminent loss of 500 or more manufacturing jobs inthe county or of a number of manufacturing jobs equal to at least ten percent(10%) of the existing manufacturing workforce in the county.

(8)        Manufacturing. – Definedin G.S. 105‑129.81.

(9)        Reserved.

(10)      Warehousing. – Definedin G.S. 105‑129.81.

(11)      Wholesale trade. – Definedin G.S. 105‑129.81.

(b)        Repealed by SessionLaws 1996, Second Extra Session, c. 13, s. 3.5.

(b1)      (Effective untilJuly 1, 2012) Utility Account. – There is created within the IndustrialDevelopment Fund a special account to be known as the Utility Account toprovide funds to assist the local government units of the counties that aredefined as a tier one or tier two county under G.S. 143B‑437.08 after theadjustments of that section are applied in creating jobs in eligibleindustries. The Department of Commerce shall adopt rules providing for theadministration of the program. Except as otherwise provided in this subsection,those rules shall be consistent with the rules adopted with respect to theIndustrial Development Fund. The rules shall provide that the funds in theUtility Account may be used only for construction of or improvements to new orexisting water, sewer, gas, telecommunications, high‑speed broadband,electrical utility distribution lines or equipment, or transportationinfrastructure for existing or new or proposed industrial buildings to be usedfor eligible industrial operations. To be eligible for funding, the water,sewer, gas, telecommunications, high‑speed broadband, electrical utilitylines or facilities, or transportation infrastructure shall be located on thesite of the building or, if not located on the site, shall be directly relatedto the operation of the specific industrial activity. There shall be no maximumfunding amount per new job to be created or per project.

(b1)      (Effective July1, 2012) Utility Account. – There is created within the IndustrialDevelopment Fund a special account to be known as the Utility Account toprovide funds to assist the local government units of the counties that haveone of the 65 highest rankings under G.S. 143B‑437.08 after theadjustments of that section are applied in creating jobs in eligibleindustries. The Department of Commerce shall adopt rules providing for theadministration of the program. Except as otherwise provided in this subsection,those rules shall be consistent with the rules adopted with respect to theIndustrial Development Fund. The rules shall provide that the funds in theUtility Account may be used only for construction of or improvements to new orexisting water, sewer, gas, telecommunications, high‑speed broadband,electrical utility distribution lines or equipment, or transportationinfrastructure for existing or new or proposed industrial buildings to be usedfor eligible industrial operations. To be eligible for funding, the water,sewer, gas, telecommunications, high‑speed broadband, electrical utilitylines or facilities, or transportation infrastructure shall be located on thesite of the building or, if not located on the site, shall be directly relatedto the operation of the specific industrial activity. There shall be no maximumfunding amount per new job to be created or per project.

(c)        Reports. – TheDepartment of Commerce shall report annually to the General Assembly concerningthe applications made to the fund and the payments made from the fund and theimpact of the payments on job creation in the State. The Department of Commerceshall also report quarterly to the Joint Legislative Commission on GovernmentalOperations and the Fiscal Research Division on the use of the moneys in thefund, including information regarding to whom payments were made, in whatamounts, and for what purposes.

(c1)      In addition to thereporting requirements of subsection (c) of this section, the Department ofCommerce shall report annually to the General Assembly concerning the paymentsmade from the Utility Account and the impact of the payments on job creation inthe State. The Department of Commerce shall also report quarterly to the JointLegislative Commission on Governmental Operations and the Fiscal ResearchDivision on the use of the moneys in the Utility Account including informationregarding to whom payments were made, in what amounts, and for what purposes.

(d)        Repealed by SessionLaws 1996, Second Extra Session, c. 13, s. 3.5.  (1989, c. 751, s. 9(c); c.754, s. 54; 1991 (Reg. Sess., 1992), c. 959, s. 60; 1993, c. 444, s. 1; 1996,2nd Ex. Sess., c. 13, s. 3.5; 1997‑456, s. 27; 1998‑55, s. 6; 1999‑360,s. 17; 2000‑56, s. 3(b); 2002‑172, ss. 2.2(a), (b); 2003‑416,s. 2; 2005‑276, s. 13.5; 2006‑252, s. 2.4; 2007‑323, s.13.18(i); 2009‑523, s. 1(a) – (c).)