North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S589 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-S 1
4-SENATE BILL 589
3+S D
4+SENATE BILL DRS15243-NIa-77A
5+
56
67
78 Short Title: Tier One County Assistance. (Public)
89 Sponsors: Senator Smith (Primary Sponsor).
9-Referred to: Rules and Operations of the Senate
10-March 26, 2025
11-*S589 -v-1*
10+Referred to:
11+
12+*DRS15243 -NIa-77A*
1213 A BILL TO BE ENTITLED 1
1314 AN ACT TO PROVIDE ECONOMIC ASSISTANCE TO TIER ONE COUNTIES. 2
1415 The General Assembly of North Carolina enacts: 3
1516 SECTION 1.(a) Short Title. – This act may be cited as the "Economic Empowerment 4
1617 for Tier One Counties Act." 5
1718 SECTION 1.(b) Findings and Purpose. – It is the intent of the General Assembly by 6
1819 this act to do the following: 7
1920 (1) Recognize the unique economic challenges faced by Tier One counties in 8
2021 North Carolina. 9
2122 (2) Acknowledge the importance of self-reliance and local empowerment in 10
2223 fostering economic development. 11
2324 (3) Empower Tier One counties by allocating funds to support locally driven 12
2425 economies. 13
2526 SECTION 1.(c) Funding. – There is appropriated from the General Fund to the 14
2627 Department of Commerce (Department) the sum of four hundred million dollars ($400,000,000) 15
2728 in nonrecurring funds for the 2025-2026 fiscal year to be used for purposes consistent with this 16
2829 act. The funds appropriated pursuant to this act shall not revert at the end of the 2025-2026 fiscal 17
2930 year but shall remain available for expenditure for purposes consistent with this act until all funds 18
3031 have been expended. 19
3132 SECTION 1.(d) Use of Funds. – Funds appropriated to the Department by this act 20
3233 shall be used to provide grants to development tier one areas, as defined in G.S. 143B-437.08, 21
3334 for projects and initiatives that promote (i) self-sufficiency, (ii) infrastructure improvement, (iii) 22
3435 education, or (iv) workforce development. The Department may use up to one percent (1%) of 23
3536 the funds appropriated in this act for administration of the program and shall establish guidelines 24
3637 for providing for administration of the program. Those guidelines shall include, at a minimum, 25
3738 the following provisions, which shall apply to each grant from the program: 26
3839 (1) Only those counties that are designated as "development tier one areas" 27
3940 pursuant to G.S. 143B-437.08 during the year in which funding is disbursed 28
4041 are eligible to receive grant funding under this act. 29
4142 (2) A county may receive up to ten million dollars ($10,000,000) in grant funding 30
4243 under this act. 31
4344 (3) A county seeking funding under this act shall submit a proposal to the 32
4445 Department detailing the intended use of the funds they are requesting. The 33
4546 proposal shall include, at a minimum, evidence that the funding will be used 34
4647 for the promotion of (i) self-sufficiency, (ii) infrastructure improvement, (iii) 35
47-education, or (iv) workforce development. 36 General Assembly Of North Carolina Session 2025
48-Page 2 Senate Bill 589-First Edition
48+education, or (iv) workforce development. 36
49+FILED SENATE
50+Mar 25, 2025
51+S.B. 589
52+PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
53+Page 2 DRS15243-NIa-77A
4954 (4) The proposal required pursuant to subdivision (3) of this subsection shall be 1
5055 reviewed and approved by the Department before grant funding is disbursed. 2
5156 The Department may issue grant funding under this act only to those 3
5257 applicants that the Department believes have sufficiently demonstrated that 4
5358 the indicated use of funds by the applicant county will achieve the purposes 5
5459 for which this grant program was established. 6
5560 SECTION 1.(e) Clawback. – If a county receives a grant under this act for which it 7
5661 is ineligible, the county forfeits the grant awarded under this act and is liable for the amounts 8
5762 received. 9
5863 SECTION 1.(f) Reporting. – On or before December 1, 2025, and at least annually 10
5964 thereafter until all grant funding appropriated and disbursed pursuant to this act has been 11
6065 exhausted, the Department shall submit a report to the chairs of the Joint Legislative Economic 12
6166 Development and Global Engagement Oversight Committee and the Fiscal Research Division 13
6267 detailing, at a minimum, the following: 14
6368 (1) The total amount of grant funding disbursed pursuant to this act. 15
6469 (2) The total number of counties who applied for funding. 16
6570 (3) The indicated uses for funding that counties included in the proposals required 17
6671 pursuant to this act. 18
6772 (4) The actual uses of the funding received by the counties under this act. 19
6873 On or before October 1, 2025, and at least annually thereafter until all grant funding 20
6974 received by the county has been exhausted and for which a report has been submitted, every 21
7075 county receiving grant funding under this act shall submit a report to the Department detailing, 22
7176 at a minimum, the following: (i) the uses to which the county put its grant funding, (ii) the total 23
7277 balance of unspent grant funding remaining, and (iii) any other information that the Department 24
7378 deems necessary to comply with its reporting obligation under this subsection. 25
7479 SECTION 2. If any provision of this act or its application is held invalid, the 26
7580 invalidity does not affect other provisions or applications of this act that can be given effect 27
7681 without the invalid provisions or application and, to this end, the provisions of this act are 28
7782 severable. 29
7883 SECTION 3. This act is effective when it becomes law. 30