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View NCGA Bill Details2019-2020 Session
House Bill 803 (Public) Filed Tuesday, April 16, 2019
Intro. by Saine.

Status: Ref to the Com on Commerce, if favorable, Rules, Calendar, and Operations of the House (House action) (Apr 18 2019)
H 803

Bill Summaries:

  • Summary date: Apr 16 2019 - View Summary

    Identical to S 466, filed 4/2/19.

    Amends GS 143B-431.01(b) to prohibit the Department of Commerce (Department) from contracting with a North Carolina nonprofit corporation regarding the administration of a site certification program. Specifies that the provision does not prohibit the contracting of responsibility for creating or maintaining a website with data on unutilized or underutilized properties in the state with potential commercial or industrial reuses. 

    Amends GS 143-431.01(d) (appears to intend GS 143B-431.01(d)), which sets forth conditions which must be satisfied prior to the Department contracting with a nonprofit corporation and in order for the nonprofit to receive State funds. Now requires the nonprofit to have a governing board consisting of 18 voting members rather than 17, to now include the Secretary of Commerce (Secretary) as an ex officio member. Prohibits the Secretary from engaging in fund-raising activities by or on behalf of the nonprofit. Eliminates the requirement for the governing board to quarterly and upon request report to the specified committee chair on the progress of the State's economic development. Makes conforming changes.

    Amends GS 143B-431.01(e), which sets forth the mandatory contract terms for any contract entered into pursuant to the statute. Modifies subdivision (e)(10) to now require each contract to contain a provision limiting the term of renewal of the contract to no more than three years (previously, limited the term of the contract to five years and permitted one year extensions up to four times after at least four-fifths of the original contract terms had passed). Requires notice of intent to renew for the initial renewal be given no less than five months prior to the expiration of the remaining contract, with subsequent notice of intent to renew to be given at least one year prior to the expiration of the remaining term of the contract, including any extension. Mandates the Department to renew a contract for which proper notice is given within 30 days. Now prohibits a contract extension from extending the remaining term of the contract to more than four years (was, two years). Eliminates the clarification that the provision does not prohibit entering into a new contract with the nonprofit. Effective January 1, 2020, further amends subdivision (e)(10) to require a contract entered into under the statute to be on a calendar-year basis.

    Directs the Department to report to the specified NCGA committee chairs by June 1, 2019, on any changes or intended changes to the scope of the contract for the performance of certain functions pursuant to GS 143B-431.01, as amended, from that which is specified in the contract in effect as of January 1, 2019.

    Amends GS 143B-431.01(e)(14) to require contracts entered into pursuant to the statute to contain a provision allowing the nonprofit to receive funds from fund-raising efforts and sources other than State funds (previously, the required provision mandated nonprofits fund-raise at least $5.75 million during the term of the contract to support operations and functions of the corporation, with at least $750,000 required to be raised during the first year of the contract term and at least $1.25 million to be raised in subsequent years of the contract term). Makes conforming changes. 

    Specifies that the initial term of renewal of an existing contract is limited to no more than three years plus the remainder of the calendar year in which the contract is renewed.