State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_143B > GS_143B-437_57

§ 143B‑437.57. Community economic development agreement.

(a)        Terms. – Eachcommunity economic development agreement shall include at least the following:

(1)        A detaileddescription of the proposed project that will result in job creation and thenumber of new employees to be hired during the base period.

(2)        The term of thegrant and the criteria used to determine the first year for which the grant maybe claimed.

(3)        The number ofeligible positions that are subjects of the grant and a description of thosepositions and the location of those positions.

(4)        The amount of thegrant based on a percentage of withholdings.

(5)        A method fordetermining the number of new employees hired during a grant year.

(6)        A method for thebusiness to report annually to the Committee the number of eligible positionsfor which the grant is to be made.

(7)        A requirement thatthe business report to the Committee annually the aggregate amount ofwithholdings during the grant year.

(8)        A provisionpermitting an audit of the payroll records of the business by the Committeefrom time to time as the Committee considers necessary.

(9)        A provision thatrequires the Committee to reduce the amount or term of a grant pursuant to G.S.143B‑437.59.

(10)      A provision thatrequires the business to maintain operations at the project location or anotherlocation approved by the Committee for at least one hundred fifty percent(150%) of the term of the grant and a provision to permit the Committee torecapture all or part of the grant at its discretion if the business does notremain at the site for the required term.

(11)      A provision thatrequires the business to maintain employment levels in this State at the levelof the year immediately preceding the base period.

(12)      A provisionestablishing the conditions under which the grant agreement may be terminated,in addition to those under G.S. 143B‑437.59, and under which grant fundsmay be recaptured by the Committee.

(13)      A provision statingthat unless the agreement is terminated pursuant to G.S. 143B‑437.59, theagreement, including any amendments pursuant to G.S. 143B‑437.59, isbinding and constitutes a continuing contractual obligation of the State andthe business.

(14)      A provision settingout any allowed variation in the terms of the agreement that will not subjectthe business to grant reduction, amendment, or termination of the agreementunder G.S. 143B‑437.59.

(15)      A provision thatprohibits the business from manipulating or attempting to manipulate employeewithholdings with the purpose of increasing the amount of the grant and thatrequires the Committee to terminate the agreement and take action to recapturegrant funds if the Committee finds that the business has manipulated orattempted to manipulate withholdings with the purpose of increasing the amountof the grant.

(16)      A provision requiringthat the business engage in fair employment practices as required by State andfederal law and a provision encouraging the business to use small contractors,minority contractors, physically handicapped contractors, and women contractorswhenever practicable in the conduct of its business.

(17)      A provisionencouraging the business to hire North Carolina residents.

(18)      A provisionencouraging the business to use the North Carolina State Ports.

(19)      A provision statingthat the State is not obligated to make any annual grant payment unless anduntil the State has received withholdings from the business in an amount thatexceeds the amount of the grant payment.

(20)      A provisiondescribing the manner in which the amount of a grant will be measured andadministered to ensure compliance with the provisions of G.S. 143B‑437.52(c).

(21)      A provision statingthat any recapture of a grant and any reduction in the amount of the grant orthe term of the agreement must, at a minimum, be proportional to the failure tocomply measured relative to the condition or criterion with respect to whichthe failure occurred.

(22)      A provision statingthat any disputes over interpretation of the agreement shall be submitted to bindingarbitration.

(23)      A provision statingthat the amount of a grant associated with any specific eligible position,including any amount transferred to the Utility Account pursuant to G.S. 143B‑437.61,may not exceed six thousand five hundred dollars ($6,500) in any year.

(24)      A provision statingthat the business agrees to submit to an audit at any time that the Committeerequires one.

(25)      A provisionencouraging the business to contract with small businesses headquartered in theState for goods and services.

(b)        Approval ofAttorney General. – The Attorney General shall review the terms of all proposedagreements entered into by the Committee. To be effective against the State, anagreement entered into under this Part must be signed personally by theAttorney General.

(c)        Agreement Binding.– A community economic development agreement is a binding obligation of theState and is not subject to State funds being appropriated by the GeneralAssembly.  (2002‑172,s. 2.1(a); 2003‑416, s. 2; 2004‑124, ss. 32G.1(f), 32G.1(g); 2006‑168,s. 1.6; 2006‑264, s. 69(e); 2009‑394, s. 3.)