Conference report makes the following changes to the 5th edition.
Amends both the long and short titles of this bill.
Amends new GS 143B-431A to clarify that it is the General Assembly's intent that the Department of Commerce (Department) develop a plan to work cooperatively with nonprofit corporations (was, that the Department be given flexibility and discretion in developing a plan to work cooperatively with nonprofit corporations) in the development of a comprehensive, long-range strategic plan for economic development through public and private means. Also states that it is the General Assembly's intent that the Department work to develop the plan while safeguarding programmatic transparency and accountability as well as the fiscal integrity of economic development programs of the state.
Amends subsection (c) of this section, which establishes the Economic Development Oversight Committee (Committee). Provides that the Committee is to have seven members (was, seven ex officio members). Removes the Director of the Office of State Budget and Management as a member of the Committee. Adds to the Committee one member appointed jointly by the Speaker of the House ofRepresentatives (Speaker of the House)and the President ProTempore of the Senate (President Pro Tem).
Amends the conditions that the North Carolina nonprofit corporation with which the Department contracts must meet. Requires that the board of the contracting nonprofit corporation must be composed of 17 voting members (was, 15), with four members appointed by the Speaker of the House (was, three) and four members appointed by the President Pro Tem (was, three). Specifies that the Governor, the Speaker of the House, and the President Pro Tem must each select members to reflect the diversity of the state's geography (was, only specified that there was to be geographic diversity represented among the Governor's appointees). Deletes additional requirements that specified that the Speaker of the House and the President Pro Tem appoint no more than onemember each from a metropolitan area. Also deletes requirement that one of the Speaker's appointmentsbeon the recommendation of the North Carolina Chamber of Commerce and thatone of the President Pro Tem's appointments be on the recommendation of the NC Federation of Independent Businesses.
Amends GS 126-5 to include liaisons to the Collaboration for Prosperity Zones set out in GS 143B-28.1 for the Departments of Commerce, Environment and Natural Resources, and Transportation as exempt from the State Personnel Act, GS Chapter 126.
Amends GS 143B-472.81 to delete as a membership requirementfor the North Carolina Board of Science, Technology, and Innovation that one of the six members from private industry is also a member of a state or federally recognized North Carolina Indian Tribe.
Amends new GS 143B-28.1, which creates collaboration for prosperity zones, and divides the state into eight zones to make changes in assigning counties to one of the eight zones.
Modifies the repeal of the statutes creating regional economic development commissions. Provides that if Senate Bill 402 (Appropriations Act of 2013), 2013 Regular Session of the General Assembly, becomes law and appropriates money to the Department for allocation to the regional economic development commissions, then the Department is to retain disbursements to the commissions occurring on or after January 1, 2014, and those funds will be available to the Department to use or allocate to a North Carolina nonprofit corporation for costs incurred on or after that date that are associated with state marketing and rebranding functions. Provides that if Senate Bill 402 becomes law, Section 15.28(g) of that act is amended to provide that the section becomes effective December 31, 2013 (was, June 30, 2014). Makes a conforming change to the title of Section 15.28.
Mandates that all rules required to be adopted by the Mining and Energy Commission, the Environmental Management Commission, and the Commission for Public Health to create a modern regulatory program for managing oil and gas exploration and development activities in the state, including the use of horizontal drilling and hydraulic fracturing, be adopted no later than October 1, 2014, as provided in Section 2(m) of SL 2012-143. Effective July 1, 2015, authorizes the Department of Environment and Natural Resources (DENR) and the Mining and Energy Commission to issue permits for using horizontal drilling and hydraulic fracturing for oil and gas explorations and development in the state; however, prohibits DENR and the Mining and Energy Commission from issuing permits until all the rules required to be adopted under Section 2(m) of SL 2012-143 have become effective.Makes conforming changes, repealingSection 3(d) of SL 2012-143 and providing that if Senate Bill 76, 2013Regular Session, becomes law, Section 1(c) of that act is repealed.
Effective July 1, 2015, and applying to energy minerals severed on or after that date, addsnew Article 5I, Severance Tax, to GS Chapter 105.
Defines 28 terms as they are used in this Article.
Provides that there is an excise tax, to be known as a "severance tax," levied on the privilege of engaging in the severance of energy minerals from the soil or water of this state. Defines severance as the extraction or other removal of an energy mineral from the soil or water of this state. Provides that the severance tax is levied on all energy minerals severed from the soil or water, when the minerals are sold or consumed, whichever comes first. States that the purpose of this act is to provide revenue to administer and enforce the provisions of this Article; to administer the state's natural gas and oil reclamation regulatory program; to meet the environmental and resource management needs of this state; and to reclaim land affected by exploration, drilling and production of natural gas and oil.
Provides criteria for calculating the amount of the severance tax. Calculations includeuse of the applicable market percentage rate as a multiplier, and the section defines the term applicable market percentage rate. Includes additional information regarding the use of the market percentage rate in calculations for determining the amount of the severance tax for gas, oil, and condensates (defines condensates as liquid hydrocarbon that is or can be recovered from gas by a separator or other means). Exempts on-site use from the tax imposed under this Article. Defines on-site use as the severance of energy minerals from land or water owned legally or beneficially by the producer, used by the producer on the producer's homestead, and having a yearly cumulative market value that is not greater than $1,200. Provides that if the amount exceeds a value of $1,200 during any year, any further severance of energy minerals on-site will be subject to the tax imposed by this article.
Provides that severance taxes are payable when a return is due anddeclares that returns are due on a quarterly or monthly basis. Requires that returns be filed by the producer of the energy mineral with the Secretary of Revenue (Secretary) on a form and in a manneras prescribed by the Secretary. Provides additional specifications regarding the filing of returns, the payment of the tax, and claiming the exemption for on-site use.
Requires a producer who fails to file a return as required under this Article to file a bond or an irrevocable letter of credit with the Secretary.
Specifies how the Secretary is to allocate the tax levied in this Article. Prohibits expending the allocated funds until they have been appropriated by the General Assembly.
Provides that if any entity does not report a return or pay any tax or fee required by this Article for 90 days after it is due, the Secretary will inform the Secretary of Environment and NaturalResources. Directs the Secretary of Environment and NaturalResources to suspend the entities' permits and to immediately notify an entity by mail of a suspension under this section.
Prohibits a city or county from imposing any tax on any activities involved with the production, business, or ownershipof energy minerals in the state. However, this provision does not prevent the taxation of the property in accordance with Article 11 of GS Chapter 105 (listing, appraisal, and assessment of property collection of taxes on property).
Amends GS 105-259 to authorize the disclosure of information identifying an entity that is liable for the severance tax to DENR, to enable DENR to notify the entity regarding its severance tax liability.
Repeals GS 113-387 (regarding tax assessments on the production of crude oil and gas) and GS 113-388 (collecting the assessments on crude oil and gas).
Repeals GS105-130.5(a)(11) (regarding the percentage depletion allowance under the tax code formines, oil and gas wells, and other natural deposits). Effective for taxable years that begin on or after July 1, 2015.
Bill Summaries: S127 ENERGY/ECONOMIC DEVELOPMENT MODIFICATIONS (NEW).
Summary date: Jul 25 2013 - View Summary
Summary date: Jul 24 2013 - View Summary
Conference report to the 5th edition is to be summarized.
Summary date: Jun 26 2013 - View Summary
House amendments to the 4th edition make the following changes.
Amendment #1 states the General Assembly's intent that state marketing and rebranding functions performed by regional economic development commissions be performed by the Department of Commerce or a North Carolina nonprofit on and after January 1, 2014, and that funds appropriated for those functions will be available to the Department on or after that date. Deletes the provision allowing the Department of Commerce to retain 50% of the appropriation for state marketing and rebranding if Senate Bill 402 becomes law and appropriates money to the regional economic development commissions.
Amendment #2 amends GS 143B-431A to clarify that members of the Economic Development Oversight Committee appointed by the Speaker of the House or the President Pro Tempore of the Senate may not be General Assembly members. Amends the Committees's duties to clarify that the complaints that they can receive, review, and refer are those regarding the contract or the performance of the nonprofit corporation, and allows the Committee to perform any other duties the Committee deems necessary (was, any other duties set forth in the contract). Clarifies that each member of the Committee appointed by the Governor must have expertise in the specified issue areas. Makes technical changes.
Amends the duties of the Revisor of Statutes concerning making conforming changes and corrections.
Amendment #3 amends GS 143B-431A to provide that if the Department of Commerce contracts with a state nonprofit corporation to promote and grow the travel and tourism industries, then all funds appropriated to the Department for tourism and marketing purposes must be used for a research-based comprehensive marketing program directed toward consumers in key markets most likely to travel to the state and not for ancillary activities. Also amends the statute to require that the membership of the governing board of the NC nonprofit corporation include expertise in tourism, as jointly recommended by the North Carolina Travel and Tourism Coalition and the North Carolina Travel Industry Association (was, recommended by the North Carolina Travel and Tourism Coalition).
Amendment #4 amends GS 143B-472.81 to require one member of the North Carolina Board of Science, Technology, and Innovation be a member of a state or federally recognized North Carolina Indian Tribe.
Summary date: Jun 20 2013 - View Summary
House committee substitute makes the following changes to the 3rd edition.
Changes the short and long title.
Part I, Authorize Contracting of Economic Development Functions by the Department of Commerce
Enacts new section GS 143B-431A, Department of Commerce - contracting of functions, providing that the purpose of this new section is to establish a framework whereby the Department of Commerce (Department) can support one or more nonprofit corporations, through financial and other means, that will render advisory, research, recruiting recommendations concerning incentives or grants for jobs and business development, as well as consultation on the development of a long-range strategic plan for economic development, through public and private means.
Authorizes the Department to contract with one or more NC nonprofits to perform one or more of the Department's functions, powers, duties, or obligations. Sets out the functions that the Department cannot contract for with the nonprofits, including the administration of unemployment insurance and functions set forth in GS 143B-431(a)(2). Establishes the Economic Development Oversight Committee (Committee) to provide oversight over the newly contracted services. Provides the Committee will have seven ex officio members; sets out who will serve as the seven members, including the Secretary of Transportation and the Secretary of Revenue. Provides that the Committee must meet at least quarterly and sets out the duties of the Committee, including receiving, reviewing, and referring complaints and requesting enforcement of the contract by the Attorney General.
Sets out requirements that must be met prior to contracting with any NC nonprofit including specific requirements concerning the makeup and diversity of the nonprofit's governing board and a requirement that any amount of state funds that can be used for the annual salary of any one employee of the nonprofit cannot exceed the amount provided for in the most recent Operations Appropriations Act of the General Assembly (currently $120,000). Sets out six mandatory contract terms, which must be included in any contract entered into under this new section, including provisions requiring the nonprofit to provide copies of the nonprofit's annual audited financial statements to specified parties and a certification by the nonprofit that it is in compliance with the requirements of GS Chapter 55A.
Requires the Department, by September 30 of each year, to submit a report on the contracted performances to the Joint Legislative Commission on Governmental Operations, the Joint Legislative Economic Development and Global Engagement Oversight Committee, and the Fiscal Research Division. Sets out what the report must contain, including copies of the reports required to be given to the Department by the contracted nonprofits and any other information determined to be necessary or specifically requested in writing. Provides that the contracted nonprofits are subject to the public information requirements of GS Chapter 132 and Chapter GS 143 for meetings in which the corporation recommends a grant of State funds.
Repeals GS 143B-434, concerning the Economic Development Board. Amends GS 143B-434.01, concerning the Comprehensive Strategic Economic Development Plan, adding and defining the term "Secretary" for use in the section, meaning the Secretary of Commerce. Provides that the Secretary is tasked with preparing the Comprehensive Strategic Economic Development Plan, reviewing and updating the existing plan on or before April 1 of each year (previously, the Board was tasked with preparing the plan). Establishes, notwithstanding the above provisions, the board will prepare the Comprehensive Strategic Economic Development Plan by December 31, 2013. Makes conforming and clarifying changes to the section in response to the Secretary's new assigned duties. Amends GS 143B-431A, as newly enacted above, effective January 1, 2014, providing four new requirements for the governing board of a contracting nonprofit, including requiring the board to provide advice concerning economic and community development planning for the state and requiring the board to annually recommend to the Governor biennial and annual appropriations for economic development programs. Repeals GS 143B-437.03, concerning the allocation of economic development responsibilities. Above changes effective January 1, 2014.
Directs the Department to study and develop a plan for contracting with one or more NC nonprofit corporations for the performance of economic development and tourism marketing activities and duties. Requires the Department to consult with various stakeholders and consider the benefits and costs of implementing such a plan. Requires a schedule for implementation of contracting services to be developed. Also requires a report to be made to the Joint Legislative Commission on Governmental Operations no later than March 1, 2014, and prior to the entering into of any contract pursuant to GS 143B-431A.
Amends GS 126-5(c2), providing a new subdivision concerning those subject to the provisions of the state personnel system, providing that officers and employees of a NC nonprofit that contracts with the Department pursuant to GS 143B-431A are not subject to the provisions of GS 126-5.
All above changes, unless otherwise noted, are effective July 1, 2013.
Part II, Modify North Carolina Board of Science and Technology
Renames the Department's North Carolina Board of Science and Technology to North Caroline Board of Science, Technology, and Innovations. Amends the board's duties and powers to include advising and making recommendations to any NC nonprofit with which the Department contracts pursuant to GS 143B-431A on the role of science, technology, and innovation. Provides new requirements in regards to the makeup of the board's members, providing that the board will have 23 (was, 17) members, requiring one of the members from the components of the University of North Carolina to be from a historically black college or university, one member to be from the NC Community College System, one member representing K-12 public education, and an additional seven at-large members. Makes conforming and clarifying changes.
Part III, Creation of Collaboration for Prosperity Zones
Amends the purpose of Collaboration for Prosperity Zones to include receiving advice on economic development issues by local boards established by a NC nonprofit corporation with which the Department contracts. Alters the counties that are included in each of the eight Prosperity Zones.
Part IV, Require at Least One Liaison in Each Collaboration for Prosperity Zone
Provides a deadline of January 1, 2014, for the Department, DENR, and DOT to physically maintain co-located liaison personnel within each zone and for the Community College System Office to designate a liaison in each zone. Provides that the previously required and specified reports from DOT, DENR, and the Community Colleges System Office, concerning the establishment of collocated liaisons within each Collaboration for Prosperity Zone and a description of the activities the liaisons have been assigned to perform, must be submitted by January 1, 2014 (was, October 1, 2013).
Part VI, Regional Economic Development Commissions/Statutes Creating Commissions Repealed
Repeals Article 2 (Economic Development Commissions) and Article 4 (North Carolina's Eastern Region) of GS Chapter 158.
Provides that upon the dissolution of North Carolina's Eastern Region (Region), the governing body of the entity must liquidate all the assets of the Region to the extent possible and distribute them to the counties of the Region in proportion to the amount of the vehicle registration tax levied by the commission and collected in each county. Any assets that exceed the amount of the registration tax collected by the counties and are attributable to an appropriation made to the Region by the General Assembly must revert to the General Fund and cannot be distributed to the counties. Counties can only use the funds distributed to them, pursuant to this subsection, for economic development projects and infrastructure construction projects. Sets out the formula and process for determining the amount that should be refunded to each county, allocating first the amounts loaned and not yet repaid. Notes and other instruments possessing the right to repayment will be held and collected by the State Treasurer. Assets that are unable to be liquidated will be distributed to the point practicable on an equitable basis.
Amends GS 120-123, concerning service by members of the General Assembly on certain boards or commissions; GS 143-215.42, concerning the acquisition of lands; GS 143-506.10; concerning the designation of growth centers; and GS 153A-398, concerning regional planning and economic development commissions, making clarifying and conforming changes.
Allows the Revisor of Statutes to correct any reference and make other conforming changes where necessary. Provides that if Senate Bill 402 (Appropriations Act) of the 2013 Regular Session becomes law and appropriates money to the regional economic development commissions, then the Department must retain 50% of the appropriation for state marketing and rebranding purposes. Provides that no funds will be disbursed to the regional economic commissions after December 31, 2013.
Part VI effective January 1, 2014.
Summary date: May 14 2013 - View Summary
Senate amendment #2 amend the 2nd edition, as amended, as follows. Adds to the items that must be studied by the Study Commission on Interagency Collaboration for Prosperity, the grouping of counties within each Collaboration for Prosperity Zone to determine whether there is a better configuration while keeping the same overall number of zones.
Summary date: May 13 2013 - View Summary
Senate amendment to the 2nd edition makes the following changes. Makes a clarifying technical change.
Summary date: May 8 2013 - View Summary
Senate committee substitute makes the following changes to the 1st edition.
Amends the long title of this act. Changes the title ofPart I of this act to Creation of Collaboration for Prosperity Zones (was, Creation of Uniform Regional Divisions). Adds a new section, GS 143B-28.1, to establish geographically uniform zones (was, geographically uniform administrative regions)to (1) facilitate collaborative and coordinated planning and use of resources;(2) improve cooperation among governmental and nonprofit entities at the local and regional level;and (3) establish, to the extent that it is feasible to do so,one-stop sources in each region for citizens and businesses seeking state services at a regional level.Divides the state into eight zones (was, seven regions) to create collaboration for prosperity zones. Identifies the eight zones as follows and specifies the counties included in each zone: (1) Western Region, (2) Northwest Region, (3) Southwest Region, (4) Piedmont-Triad (Central) Region, (5) North Central Region, (6) Sandhills (South Central) Region, (7) Northeast Region, and (8) Southeast Region. Amends Section 1.(c) to require agencies to report to the Joint Legislative Commission on Governmental Operations and the Study Commission on Inter-Agency Collaboration for Prosperity by January 1, 2014,asto how they plan to abolish regions and transform them into prosperity zones as defined by this act. Effective July 1, 2013.
Enacts a new Part IIto abolishthe regional economic development commissions, repealing GS 158-8.1, 158-8.2, 158-8.3, 158-8.4, 158-8.4A, 158-8.5, 158-8.6, 158-8.7, 158-8.8, and 158-8.12. Makes conforming changes, repealing Article 4, North Carolina Eastern Region Act, of GS Chapter 158 and GS 120-123(62). Makes a conforming change to GS 143-506.10. Allows the specifiedeconomic development commissions to either reorganize as nonprofit organizations carrying out the same purposes but without receipt of appropriations from the state or to wind up their affairs. Amends GS 143B-431, adding new subsection (c1) to transfer the functions of the regional economic development commissions abolished in this act to the Department of Commerce (Department). Specifies the required duties and responsibilities of the Department and requires the Department to make an annual report by February 15 of each year to the Joint Legislative Commission on Governmental Operations summarizing the preceding year's program activities, objectives, and accomplishments under this subsection. Directs the Department to use available funds to carry out the requirements of this Part. Effective July 1, 2013.
Deletes provisions requiring specified agencies to conduct self-studies, requiringthe implementation of uniform regional divisions in programs administered by specified departments, andestablishing the Study Commission onRegionalization Conformity.
Requires the departments of Commerce, Environment and Natural Resources (DENR),and Transportation (DOT)to physically maintain co-located liaison personnel within each zone and prescribes the duties of the liaisons. Also requires the Community College System Office to designate a liaision in each zone. Specifies reporting requirements. Effective July 1, 2013, and expires July 1, 2017.
Creates the eight-memberStudy Commission on Inter-Agency Collaboration for Prosperity (Commission) toreview reports submitted by the following departments: Commerce, DENR, DOT, and the Community College System.Provides that the Commission may study and make recommendations to the 2014 Regular Session of the 2013 General Assembly on issues related to enhancing inter-agency collaboration, consolidating programs to streamline services, requiring the establishment of inter-agency one-stop shops in each zone, and reducing barriers faced by citizens and businesses in accessing services. Provides that the Commission terminates upon the filing of its report or on July 1, 2014, whichever is later.
Except as otherwise provided, this act is effective when it becomes law.
Summary date: Feb 21 2013 - View Summary
Establishes the Study Commission on Regionalization Conformity (SCRC) as well as seven geographical uniform administrative regions across the state, in which agency regional offices and services will be consolidated to create a one-stop source for citizens and businesses seeking services. Each county in the state will be assigned to a region.
Requires the following entities to conduct a self-study of how their processes and programs can most efficiently and economically be aligned with those of the other entities listed: (1) Department of Transportation (DOT), (2) Department of Environment and Natural Resources (DENR), (3) Western North Carolina Regional Economic Commission, (4) North Carolina's Northeast Commission, (5) Southeastern North Carolina Regional Economic Development Commission, (6) North Carolina's Eastern Region Development Commission, (7) Charlotte Regional Partnership, Inc., (8) Piedmont Triad Regional Partnership, and (9) Research Triangle Partnership. Study results must be reported to the SCRC no later than September 1, 2013.
Establishes the eight-member SCRC, with four Senators appointed by the President Pro Tempore of the Senate and four Representatives appointed by the Speaker of the House. The SCRC will meet at the call of the appointed cochairs. SCRC members will receive per diem, subsistence, and travel allowances.
The duties of the SCRC will be to study and develop recommendations to implement the alignment of services and resources in the geographical uniform administrative regions and the regional divisions of the DOT and DENR. These recommendations must include (1) a suitable location, within each region, for a shared regional office; (2) a plan for shared regional facilities, staff, equipment, and support services, as well as a cost/savings analysis; (3) a plan for cross-training frontline and customer service staff; (4) a list of the services and programs of each entity that can be consolidated at the regional office; (5) a plan to enhance communication between the enitities; (6) the possibility of shared or cross-linked websites; (7) a plan for requiring local commerce entities to leverage private funding; (8) a proposed implementation timeline of each recommendation; and (9) other state entities with regional offices that should be aligned with the geographical uniform divisions. Requires the SCRC to study opportunities for those seeking services from the entities and whether or not there are activities performed by the entities that could be more efficient over the Internet or by other means.
Requires the SCRC to report the results of its study to the General Assembly. An interim report must be filed with the 2014 Regular Session of the 2013 General Assembly, with the final report being filed with the 2015 Regular Session of the 2015 General Assembly.
The SCRC will terminate on July 1, 2015, or upon the filing of its final report, whichever occurs first.