State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_143B > GS_143B-437_59

§ 143B‑437.59.  Failureto comply with agreement.

(a)        If the businessreceiving a grant fails to meet or comply with any condition or requirement setforth in an agreement or with criteria developed by the Committee inconsultation with the Attorney General, the Committee shall reduce the amountof the grant or the term of the agreement, may terminate the agreement, orboth. The reduction in the amount or the term must, at a minimum, beproportional to the failure to comply measured relative to the condition orcriterion with respect to which the failure occurred. The Committee may reducethe amount or term of a grant by formally approving a motion to reduce suchgrant in accordance with program policies adopted by the Committee for thetreatment of failures by businesses to meet or comply with a condition orrequirement set forth in the grant agreement, and it shall not be necessary toexecute an amendment to the applicable grant agreement. The Committee shallnotify any such affected business of the reduction to its grant payment,reflected in any such motion.

(b)        If a business failsto maintain employment at the levels stipulated in the agreement or otherwisefails to comply with any condition of the agreement for any two consecutiveyears:

(1)        If the business isstill within the base period established by the Committee, the Committee shallwithhold the grant payment for any consecutive year after the secondconsecutive year remaining in the base period in which the business fails tocomply with any condition of the agreement, and the Committee may extend thebase period for up to 24 additional months. Under no circumstances may theCommittee extend the base period by more than a total of 24 months. In no eventshall the term of the grant be extended beyond the date set by the Committee atthe time the Committee awarded the grant.

(2)        If the business isno longer within the base period established by the Committee, the Committeeshall terminate the agreement.

(c)        Notwithstanding theprovisions of subsections (a) and (b) of this section, if the Committee findsthat the business has manipulated or attempted to manipulate employeewithholdings with the purpose of increasing the amount of a grant, theCommittee shall immediately terminate the agreement and take action torecapture any grant funds disbursed in any year in which the Committee findsthe business manipulated or attempted to manipulate employee withholdings withthe purpose of increasing the amount of the grant.  (2002‑172, s. 2.1(a);2003‑416, s. 2; 2006‑168, s. 1.8; 2009‑394, s. 5.)