Part I.

Amends GS 143B-431.01 by also prohibiting the Department of Commerce (Department) from contracting with a nonprofit for (1) site certification functions and activities performed by the Department or (2) the performance of functions, powers, duties, or obligations of any other state agency. Amends the mandatory contract terms for any contract that the Department enters into with a nonprofit for the performance of any of the Department's functions, powers, duties, and obligations, as follows: (1) requires the nonprofit's report on prior state fiscal year program activities, objectives, and accomplishments, as well as expenditures and fund sources, to also include for jobs anticipated to result from the nonprofit's efforts the name and contact person of each company creating new jobs in the state and the location of each project and (2) adds that the contract must include a provision prohibiting the nonprofit from contracting with any state agency other than the Department for the performance of one or more of the agency's functions, powers, duties, or obligations.

Part II.

Amends the definitions used in Part 2F, E-NC Initiative, of Article 10 (Department of Commerce) of GS Chapter 143B. Specifies that the term eligible position does not include a position filled by a worker with an H-1B visa or H-1B status. 

Amends GS 143B-437.52 by amending the conditions that the Economic Investment Committee must find before entering into an agreement with business to provide grants, to require that the project be consistent with economic development goals for the State and for the area where it will be located, including anticipated effects the project described in the application will have on the development factors, as calculated under GS 143B-437.08, of the area. 

Amends GS 143B-437.56 by adding that for any eligible position located in a county designated as an attainment area, 70% of the annual grant is payable to the business and 30% is payable to the Industrial Development Fund Utility Account (Utility Account). For any position located in a development tier three area that is not designated as an attainment area, 75% of the grant is payable to the business and 25% is payable to the Utility Account. 

The above portions of Part II are effective January 1, 2017.

Amends GS 143B-437.52(c) to limit the application of the existing maximum amount of grant liability to grants awarded for projects that are not wholly located in development tier one areas. Makes conforming changes.

Amends GS 143B-437.72 by amending the provisions that must be included in an agreement between a local government and a grantee business. Prohibits the provisions concerning a commitment to create or retain a specified number of jobs within a specified salary range at a specified location from including the number of jobs filled by workers with H-1B visas or H-1B status. Amends the provisions that must be included in an agreement between the state and local governments by making the current matching requirements for local governments in a tier three area applicable to those that are not designated as an attainment area. Adds that for a local government in an attainment area, the State will provide no more than $1 for every $2 provided by the local government. Effective January 1, 2017.

Amends GS 143B-437.01, concerning the Utility Account, by adding that the Utility Account is to provide funds to assist in retaining, as well as creating, jobs, including expanding the existing job base. Makes conforming changes.

Part III.

Amends GS 143B-437.08 by deleting the provisions requiring adjustments to the development factor and specified exceptions. Adds that the Secretary of Commerce (Secretary) must cost adjust the national value for per capita income to determine the state value for that factor and determine the state value for the specified factors used in calculating the development factor. Using these metrics, requires the Secretary to create an index, as follows: (1) the state average rate of unemployment divided by the county's average rate, (2) the county's per capita income divided by the per capita income value for the state determined pursuant to this subsection, (3) the county's percentage growth in population divided by the state's percentage growth, and (4) the county's adjusted assessed property value per capita divided by the state adjusted assessed property value per capita. Requires the Secretary to then rank and publish all the counties according to their index scores, along with the value against which the factor is compared, from lowest to highest, with a separate designation for any county with performance greater than that of the benchmarks for all indexed development factors as an attainment area. An index score average and achievement area designation is effective only for the calendar year following the designation. Makes conforming changes to GS 143B-437.01, GS 143B-472.127, and GS 143B-472.128. Applies to economic development awards made and related determinations occurring on or after January 1, 2018.

Part IV.

Requires for each Collaboration for Prosperity Zone established in GS 143B‑28.1 that the employees of the Department in the zone must examine each annual update of the plan; collate all information relevant to the zone, county, region, and other unit of local government in the zone; and provide a copy of the collated information to each unit of local government within the zone. Requires that the collated information also identify any additional regional assets not otherwise contained in the annual update. Requires for any asset identified in the annual update or identified by the employees an analysis to be performed to identify appropriate potential industries best suited to maximize the beneficial economic impact of each asset. Requires the Department to give the Joint Oversight Committee on Economic Development and Global Engagement a list of any assets remaining in the collated information for more than two years by January 1 of each year.

Requires, for each Collaboration for Prosperity Zone established in GS 143B‑28.1, the employees of the Department in the zone to submit a report to the Joint Legislative Economic Development and Global Engagement Oversight Committee and the Fiscal Research Division on the following: (1) jobs anticipated to result from efforts of the employees, including the name and contact person of each company creating new jobs in the zone; (2) the location of each project, including the development tier designation of the location; and (3) project leads that were not submitted to the Department for possible discretionary incentives.

Part V.

Amends GS 143B-437.07 to require the Department to use the index required by GS 143B‑437.08(c1) to create a plan for improving the performance of each county underperforming the benchmark in one or more indexed development factors to the benchmark performance level at the time the plan was created. Requires the plan to cover five years, and requires a new plan upon the plan's expiration. Requires the Department to publish and submit an annual progress report to the Joint Legislative Oversight Committee on Economic Development and Global Engagement that includes specified information. Requires that a copy of a plan for the first year be submitted after it is created and each progress report be submitted on or before April 1 of each year. Makes additional clarifying changes.

Specifies that for purposes of the initial plan required under GS 143B‑437.07, the Department must consult with and use data compiled by the Center for Competitive Economies at the Kenan‑Flagler Business School at UNC-CH for the study performed for the Joint Legislative Oversight Committee on Economic Development and Global Engagement.

Part VI.

Requires all entities to, by July 1, 2017, elect whether to discontinue the use of the development tier designations for all purposes and programs, including taxes, the North Carolina Development Farmland Preservation Trust Fund, the Spay and Neuter Program, the Abandoned Manufactured Home Cleanup Grants Program, the State Wastewater Reserve, the State Drinking Water Reserve, the Public Safety Assistance Points Grant Program, Oral Health Preventive Services, Medication Assistance, Qualified Allocation Plan for Low‑Income Housing Tax Credits, and the Strategic Prioritization Funding Plan for Regional Impact Transportation Investment Projects. This section applies to: (1) the Department of Agriculture and Consumer Services; (2) the Department of Environmental Quality; (3) the Department of Information Technology; (4) the Department of Health and Human Services; (5) the North Carolina Housing Finance Agency; (6) the Department of Transportation; and (7) the Department of Revenue.

Requires each entity that decides to discontinue the use of the development tier designations to independently develop criteria designed to achieve each program's objectives to be used in place of development tier designations and report by October 1, 2017, on the developed criteria to the Fiscal Research Division and to their respective joint oversight committees. Also requires an entity electing to discontinue use of the development tier designations to annually update, as of January 1 of each calendar year, usage of the development tier designations to those published latest by the Department of Commerce until the developed replacement criteria are enacted into law.

Part VII.

Unless otherwise indicated, effective when the act becomes law.