GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                    1

HOUSE BILL 800

 

 

Short Title:        Streamlining NC Economic Dev for Job Creation.

(Public)

Sponsors:

Representatives Murry, McComas, Moffitt, and Collins (Primary Sponsors).

For a complete list of Sponsors, see Bill Information on the NCGA Web Site.

Referred to:

Commerce and Job Development.

April 7, 2011

A BILL TO BE ENTITLED

AN ACT to create the north carolina jobs and commerce corporation task force to study the implementation of the transferring of economic development activities into a single entity.

Whereas, the economic development activities in North Carolina are seemingly moving in various directions; and

Whereas, the economic development activities in North Carolina have no central governance to prevent duplicative efforts and monitor effectiveness; and

Whereas, a single economic development governance structure, coupled with a detailed implementation plan to establish a public-private partnership, would help to streamline and add a layer of accountability to economic development activities; and

Whereas, the current economic conditions highlight the need for efficient economic development activities, accountability, and oversight to maximize the assistance to businesses, both small and large, to expand, grow, and create jobs; Now, therefore,

The General Assembly of North Carolina enacts:

SECTION 1.1.  Creation. - Effective July 1, 2012, there is created the North Carolina Jobs and Commerce Corporation (NCJCC), which is intended to replace the current economic development governance structure currently located in other State entities, including the Department of Commerce and which shall be housed within the Small Business Technology and Development Center (SBTDC) within The University of North Carolina.  The structure, duties, responsibilities, and functions of the NCJCC and the implementation plan of transferring the economic development activities within this State to the NCJCC shall be studied by the North Carolina Jobs and Commerce Corporation Task Force established pursuant to Section 2 of this act.

SECTION 1.2.  Corporate board. - The Board of Directors of the NCJCC shall be composed of the Secretary of Commerce as an ex officio member and of 15 members, as follows:

(1)        Six members appointed by the Speaker of the House of Representatives as follows:

a.         An individual who is a member or a representative of a member of the North Carolina Economic Developers Association and who represents a rural county, as defined in G.S. 143B-437.45.

b.         An individual who is a member or a representative of a member of the North Carolina Chamber of Commerce.

c.         Three individuals who are members of the House of Representatives at the time of appointment, at least one of which represents the minority party.

d.         An individual with small business ownership experience. As used in this act, "small business" is as defined in G.S. 105-129.50.

(2)        Six members appointed by the President Pro Tempore of the Senate as follows:

a.         An individual who is a member or a representative of a member of the North Carolina Economic Developers Association and who represents an urban area. As used in this act, "urban area" means places of 2,500 or more persons incorporated as cities, villages, boroughs, or towns.

b.         An individual who is a member or a representative of a member of the National Federation of Independent Business.

c.         Three individuals who are members of the Senate at the time of appointment, at least one of which represents the minority party.

d.         An individual with experience in the private corporate sector.

(3)        Three members of the public who are not State employees and have not left State service within a period of not less than 12 months preceeding the appointment, as follows:

a.         An individual appointed by the Governor.

b.         An individual appointed by the Speaker of the House of Representatives.

c.         An individual appointed by the President Pro Tempore of the Senate.

The Board of Directors shall have two cochairs, one designated by the President Pro Tempore of the Senate and one designated by the Speaker of the House of Representatives from among their appointees.

SECTION 1.3.  Responsibilities. - Effective July 1, 2012, responsibilities of and monies located in entities and funds listed in Section 2.3 of this act shall be transferred to the NCJCC, which shall assume the oversight of the State's economic development programs.

SECTION 2.1.  Establishment. - The North Carolina Jobs and Commerce Corporation Task Force is established.

SECTION 2.2.  Membership. - The Task Force shall be composed of 3 ex officio members appointed by the Governor and 12 members, as follows:

(1)        Six members appointed by the Speaker of the House of Representatives as follows:

a.         An individual who is a member or a representative of a member of the North Carolina Economic Developers Association and who represents a rural county, as defined in G.S. 143B-437.45.

b.         An individual who is a member or a representative of a member of the North Carolina Chamber of Commerce.

c.         Three individuals who are members of the House of Representatives at the time of appointment, at least one of which represents the minority party.

d.         An individual with small business ownership experience. As used in this act, "small business" is as defined in G.S. 105-129.50.

(2)        Six members appointed by the President Pro Tempore of the Senate as follows:

a.         An individual who is a member or a representative of a member of the North Carolina Economic Developers Association and who represents an urban area. As used in this act, "urban area" means places of 2,500 or more persons incorporated as cities, villages, boroughs, or towns.

b.         An individual who is a member or a representative of a member of the National Federation of Independent Business.

c.         Three individuals who are members of the Senate at the time of appointment, at least one of which represents the minority party.

d.         An individual with experience in the private corporate sector.

The Task Force shall have two cochairs, one designated by the President Pro Tempore of the Senate and one designated by the Speaker of the House of Representatives from among their appointees. The Task Force shall meet upon the call of the cochairs. Vacancies shall be filled by the appointing authority. A quorum of the Task Force shall be a majority of the members.

SECTION 2.3.  Duties. - The Task Force shall do the following:

(1)        Evaluate the State's current system of economic incentives to determine which economic incentives in the State's current portfolio are providing a good return on investment and are effectively recruiting high-value jobs to the State.

(2)        Examine the existing grant, loan, and other economic development programs to determine where there are duplicative incentives. The examined programs shall include, at a minimum, the following:

a.         The International Trade Division of the Department of Commerce.

b.         The Economic Development Intelligence System of the Department of Commerce.

c.         The Division of Business and Industry Development of the Department of Commerce.

d.         The Economic Development Board of the Department of Commerce.

e.         The Job Development Investment Grant program.

f.          The One North Carolina Fund.

g.         The One North Carolina Small Business Fund.

h.         The Industrial Development Fund.

i.          The Industrial Development Fund Utility Account.

j.          The Job Maintenance and Capital Development Fund.

k.         The Green Business Fund.

l.          The Site Infrastructure Grant.

m.        The Economic Development Reserve.

n.         The Regional Economic Development Commissions.

o.         The NC Biotechnology Center.

p.         The NC Institution of Minority Economic Development.

q.         Pass-through appropriations for the NC Center for Automotive Research, community development corporations, the High Point Furniture Market, the Duplin Agribusiness Center, the Gaston County Economic Development Commission, the Kerr-Tar Regional Economic Development Commission, the Hoke County Regional Industrial Park, Johnson & Wales University, the Defense and Security Technology Accelerator, and the Rural Economic Development Center.

r.          Funding provided to institutions of higher learning for community engagement, regional development, extension services, business centers, and other collaborative endeavors to foster economic development.

s.          Any other discretionary funds which have been authorized or have received, directly or indirectly, appropriations or allocations originating from the General Fund.

(3)        Develop a plan of implementation to eliminate redundant economic development entities engaged in similar or overlapping activities by transferring the State's portfolio of incentives and activities into a new, streamlined, nongovernmental entity.

(4)        Recommend guidance and oversight protocols for the new entity to ensure effective, ongoing auditing of the State's portfolio of economic incentives so as to increase accountability and to ensure that nonproductive incentives are dynamically adjusted to provide a good return on investment or eliminated.

(5)        Establish metrics to provide data that quantifies the impact of each retained economic incentive, including how many jobs are created, how many jobs are maintained, and how grants, loans, or other monetary and nonmonetary assistance has assisted businesses to grow or expand.

(6)        Study and recommend emerging growth areas that are appropriate targets for future or needed economic incentive activities and that recognize the realities of the present-day economy.

SECTION 2.4.  Compensation; administration. - Members of the Task Force shall receive subsistence and travel allowances at the rates set forth in G.S. 120-3.1, 138-5, or 138-6, as appropriate. With the prior approval of the Legislative Services Task Force, the Legislative Services Officer shall assign professional and clerical staff to assist in the work of the Task Force. The SBTDC shall provide advice and staffing to the Task Force. Provision of such advice and staffing shall be coordinated through the President of The University of North Carolina. With the prior approval of the Legislative Services Commission, the Task Force may hold its meetings in the State Legislative Building or the Legislative Office Building. The Task Force may also meet at various locations around the State in order to promote greater public participation in its deliberations.  The Task Force, while in the discharge of its official duties, may exercise all the powers provided under the provisions of G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4, including the power to request all officers, agents, agencies, and departments of the State to provide any information, data, or documents within their possession, ascertainable from their records, or otherwise available to them and the power to subpoena witnesses.  The Task Force may meet during a regular or extra session of the General Assembly.

SECTION 2.5.  Report. - The Task Force shall report its findings and recommendations, including any statutory changes necessary to improve the effectiveness and efficiency of the NCJCC to the 2012 Regular Session of the 2011 General Assembly no later than May 1, 2012.  The Task Force shall terminate upon the filing of its final report.

SECTION 2.6.  Of the funds appropriated to the General Assembly, the Legislative Services Commission shall allocate funds for the expenses of the Task Force established by this act. Such allocation may be accomplished by transfer of funds to The University of North Carolina or the Small Business Technology and Development Center. Funds appropriated to The University of North Carolina or Small Business Technology and Development Center may also be used to provide professional and clerical assistance as provided by this act.

SECTION 3.  This act becomes effective July 1, 2011.