GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 3
SENATE BILL 664
Commerce and Insurance Committee Substitute Adopted 4/8/25
Third Edition Engrossed 4/10/25
Short Title: JMAC Flexibility/ABCLaws/Megasite/Selectsite. (Public)
Sponsors:
Referred to:
March 26, 2025
*S664 -v-3*
A BILL TO BE ENTITLED 1
AN ACT TO ALLOW FLEX IBILITY IN THE EVENT OF NONCOMPLIANCE WI TH A 2
JMAC AGREEMENT, TO AMEND ABC LAWS TO EXPAND USE OF ALTERNATING 3
PROPRIETORSHIPS, TO AMEND MEGASITES AND SELECTSITES READINESS 4
PROGRAMS, AND TO EXT END THE TEMPORARY MO RATORIUM FOR CERTAIN 5
JDIG REQUIREMENTS. 6
The General Assembly of North Carolina enacts: 7
SECTION 1. G.S. 143B-437.012 reads as rewritten: 8
"§ 143B-437.012. Job Maintenance and Capital Development Fund. 9
… 10
(d) Eligibility. – A business is eligible for consideration for a grant under this section if 11
it satisfies the conditions of subdivision (1), (1a), (2), (2a), or (2b) of this subsection and satisfies 12
subdivision (4) of this subsection: 13
(1) The business is a major employer. A business is a major employer if the 14
business meets the following requirements: 15
a. The Department certifies that the business has invested or intends to 16
invest at least two hundred million dollars ($200,000,000) of private 17
funds in improvements to real property and additions to tangible 18
personal property in the project within a six-year period beginning 19
with the time the investment commences. 20
b. The business employs at least 2,000 full-time employees or equivalent 21
full-time contract employees at the project that is the subject of the 22
grant at the time the application is made, and the business agrees to 23
maintain at least 2,000 full-time employees or equivalent full-time 24
contract employees at the project for the full term of the grant 25
agreement. 26
c. The project is located in a development tier one area at the time the 27
business applies for a grant. 28
(1a) The business previously received a grant as a major employer under this 29
section and meets the following requirements: 30
a. The Department certifies that the business has invested or intends to 31
invest at least one hundred fifty million dollars ($150,000,000) of 32
private funds in improvements to real property and additions to 33
tangible personal property in the project within a six-year period 34
beginning with the time the investment commences. Amounts certified 35 General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 664-Third Edition
as invested under sub-subdivision a. of subdivision (1) of this 1
subsection shall not be included in the amount required by this 2
sub-subdivision. 3
b. The business employs at least 2,000 full-time employees or equivalent 4
full-time contract employees at the project that is the subject of the 5
grant at the time the application is made and the business agrees to 6
maintain at least 2,000 full-time employees or equivalent full-time 7
contract employees at the project for the full term of the grant 8
agreement. 9
c. The project is at the same location as that for which a grant was 10
previously awarded under subdivision (1) of this subsection. 11
(2) The business is a large manufacturing employer. A business is a large 12
manufacturing employer if the business meets the following requirements: 13
a. The business is in manufacturing, as defined in G.S. 105-129.81, and 14
is converting its manufacturing process to change the product it 15
manufactures or is investing in its manufacturing process by 16
enhancing pollution controls or transitioning the manufacturing 17
process from using coal to using natural gas for the purpose of 18
becoming more energy efficient or reducing emissions. 19
b. The Department certifies that the business has invested or intends to 20
invest at least fifty million dollars ($50,000,000) of private funds in 21
improvements to real property and additions to tangible personal 22
property in the project within a five-year period beginning with the 23
time the investment commences. 24
c. The business meets one of the following employment requirements: 25
1. If in a development tier one area, the business employs at least 26
320 full-time employees at the project that is the subject of the 27
grant at the time the application is made, and the business 28
agrees to maintain at least 320 full-time employees at the 29
project for the full term of the grant. 30
2. If in a development tier two area with a population of less than 31
60,000 as of July 1, 2013, the business employs at least 800 32
full-time employees or equivalent full-time contract employees 33
at the project that is the subject of the grant at the time the 34
application is made, and the business agrees to maintain at least 35
800 full-time employees or equivalent full-time contract 36
employees at the project for the full term of the grant. 37
(2a) The business is a heritage manufacturing employer. A business is a heritage 38
manufacturing employer if the business meets the following requirements: 39
a. The business is in manufacturing, as defined in G.S. 143B-437.01, and 40
has been operating in this State for over 100 years. 41
b. The Department certifies that the business has invested or intends to 42
invest at least three hundred twenty-five million dollars 43
($325,000,000) of private funds in improvements to real property and 44
additions to tangible personal property in the project within a four-year 45
period beginning with the time the investment commences. 46
c. The business employs at least 1,050 full-time employees or equivalent 47
full-time contract employees in the State at the time the application is 48
made and the business agrees to (i) maintain at least 1,050 full-time 49
employees or equivalent full-time contract employees in the State for 50
the full term of the grant and (ii) retrain and relocate to a development 51 General Assembly Of North Carolina Session 2025
Senate Bill 664-Third Edition Page 3
tier two area at least 400 of those full-time employees or equivalent 1
full-time contract employees upon the commencement of commercial 2
production at its tier two area facility. 3
d. The business is operating in a development tier three area at the time 4
the business applies for a grant and the business is relocating to a 5
development tier two area with an estimated population of less than 6
63,000, according to the 2017 Certified County Population Estimates 7
published by the State Demographer's Office. 8
e. An agreement with a business under this subdivision may provide that 9
the grant paid out over the term of the agreement be in unequal annual 10
payments and in amounts deviating from the factors listed in 11
subsection (l) of this section for any individual annual payment, 12
provided the factors are considered in the aggregate award to be paid 13
to the business over the entire term of the agreement. 14
(2b) The business is a supply-chain-impact manufacturing employer. A business is 15
a supply-chain-impact manufacturing employer if the business meets the 16
following requirements: 17
a. The business is in manufacturing, as defined in G.S. 105-129.81, 18
manufactures a product used primarily and significantly in the 19
construction of residential and commercial buildings, and is investing 20
in its manufacturing process to transition away from utilizing 21
coal-based energy byproducts to other alternatives. 22
b. The Department certifies that the business has invested or intends to 23
invest at least one hundred ten million dollars ($110,000,000) of 24
private funds in improvements to real property and additions to 25
tangible personal property in the project within a five-year period 26
beginning with the time the investment commences. 27
c. The business and its affiliated companies (i) employ at least 420 28
full-time employees or equivalent full-time contract employees in the 29
State at the time the application is made and (ii) agree to maintain at 30
least 420 full-time employees or equivalent full-time contract 31
employees in the State for the full term of the grant. 32
d. The business has operations in a development tier two area at the time 33
the business applies for a grant, and the business agrees to maintain or 34
increase the development tier two area operations for the term of the 35
agreement. 36
… 37
(j) Agreement. – Unless the Secretary of Commerce determines that the project is no 38
longer eligible or appropriate for a grant under this section, the Department shall enter into an 39
agreement to provide a grant or grants for a project recommended by the Committee. Each grant 40
agreement (i) is binding and constitutes a continuing contractual obligation of the State and the 41
business. The grant agreement business, (ii) shall include the performance criteria, remedies, and 42
other safeguards recommended by the Committee or required by the Department.Department, 43
and (iii) shall contain the following provisions: 44
Each grant agreement shall contain a 45
(1) A provision prohibiting a business from receiving a payment or other benefit 46
under the agreement at any time when the business has received a notice of an 47
overdue tax debt and the overdue tax debt has not been satisfied or otherwise 48
resolved. 49
(2) A provision requiring the business to maintain an employment level. For the 50
purposes of this subsection, the employment level includes full-time 51 General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 664-Third Edition
employees and equivalent full-time contract employees. The applicable 1
employment level is as follows: 2
a. Each grant If the grant agreement is for a business that is has qualified 3
as a major employer under subdivision (1) of subsection (d) of this 4
section shall contain section, a provision requiring the business to 5
maintain the employment level at the project that is the subject of the 6
agreement at the level required in subdivision (d)(1) of this section. 7
that is the lesser of the level it had at the time it applied for a grant 8
under this section or that it had at the time that the investment required 9
under subsection (d) of this section began. For the purposes of this 10
subsection, the employment level includes full-time employees and 11
equivalent full-time contract employees. The agreement shall further 12
specify that the amount of a grant shall be reduced in proportion to the 13
extent the business fails to maintain employment at this level and that 14
the business shall not be eligible for a grant in any year in which its 15
employment level is less than eighty percent (80%) of that 16
required.The provision shall further require, in the event the business 17
fails to maintain the required level of employment by more than 100 18
employees, a one percent (1%) reduction of the grant for every one 19
employee below that threshold. 20
b. Each If the grant agreement is for a business that is has not qualified 21
as a major employer under subdivision (1) of subsection (d) of this 22
section shall contain section, a provision requiring the business to 23
maintain the employment level required under that subdivision at the 24
project that is the subject of the grant. The agreement provision shall 25
further specify that the business is not eligible for a grant in any year 26
in which the business fails to maintain the employment level. 27
A grant agreement may obligate the State to make a series of grant payments over a period 28
of up to 10 years. Nothing in this section constitutes or authorizes a guarantee or assumption by 29
the State of any debt of any business or authorizes the taxing power or the full faith and credit of 30
the State to be pledged. 31
The Department shall cooperate with the Attorney General's office in preparing the 32
documentation for the grant agreement. The Attorney General shall review the terms of all 33
proposed agreements to be entered into under this section. To be effective against the State, an 34
agreement entered into under this section shall be signed personally by the Attorney General. 35
(k) Safeguards. – To ensure that public funds are used only to carry out the public 36
purposes provided in this section, the Department shall require that each business that receives a 37
grant under this section shall agree to meet performance criteria to protect the State's investment 38
and ensure that the projected benefits of the project are secured. The performance criteria to be 39
required shall include maintenance of an appropriate level of employment at specified levels of 40
compensation, compensation for required levels of employment, maintenance of health insurance 41
for all full-time employees, investment of a specified amount over the term of the agreement, and 42
any other criteria the Department considers appropriate. The agreement shall require the business 43
to repay or reimburse an appropriate portion of the grant based on the extent of any failure by the 44
business to meet the performance criteria. The agreement shall require the business to repay all 45
amounts received under the agreement and to forfeit any future grant payments if the business 46
fails to satisfy the investment eligibility requirement of this section. The use of contract 47
employees shall not be used to reduce compensation at the project that is the subject of the 48
agreement. 49
…." 50
SECTION 2. G.S. 18B-903 reads as rewritten: 51 General Assembly Of North Carolina Session 2025
Senate Bill 664-Third Edition Page 5
"§ 18B-903. Duration of permit; renewal and transfer. 1
… 2
(c1) Construction of Change in Ownership. – Nothing in subsection (c) of this section shall 3
be construed to limit alternating brewery proprietorships in which the holder of a brewery permit 4
under G.S. 18B-1101, 18B-1102, 18B-1103, 18B-1104, or 18B-1105 leases or otherwise makes 5
available its facility to another holder of a brewery permit. permit under G.S. 18B-1101, 6
18B-1102, 18B-1103, 18B-1104, or 18B-1105. For purposes of this section, if authorized by 7
federal law, the host brewery facility may also hold, at the same facility, brewery, unfortified 8
winery, fortified winery, and distillery permits pursuant to G.S. 18B-1101, 18B-1102, 18B-1104, 9
and 18B-1105. In this arrangement, the tenant brewery producer shall maintain title to the malt 10
beverages at all states of the brewing process and shall be responsible for all aspects associated 11
with manufacturing the product, including maintaining appropriate records, obtaining label 12
approval in its own name, and remitting the appropriate taxes. Alternating brewery 13
proprietorships are authorized between affiliated breweries, but shall not be used as a means to 14
allocate production quantities between affiliated breweries to obtain a malt beverage wholesaler 15
permit pursuant to G.S. 18B-1104(a)(8) where either brewery would not otherwise qualify for a 16
permit, and the Commission shall have no authority to grant an exemption to this requirement 17
pursuant to G.S. 18B-1116(b). 18
…." 19
SECTION 3. Section 11.11 of S.L. 2022-74, as amended by Section 11.11 of S.L. 20
2023-134, reads as rewritten: 21
"SECTION 11.11.(a) Purpose. – It is in the best economic and developmental interests of 22
the State to support the development of megasites to ensure the State's ongoing competitiveness 23
for major manufacturing opportunities, including, but not limited to, the aerospace, automotive, 24
clean energy, food processing, semiconductor, and life science industries. The purpose of this 25
section is to establish a competitive grant program serving to do the following: 26
(1) Identify and evaluate up to seven megasites for preferred development and 27
marketing. 28
(2) Assist local governments or a partnership of local governments in the 29
acquisition of a newly identified or existing megasite. 30
(3) Support local governments or a partnership of local governments to analyze, 31
plan, install, or upgrade public infrastructure, including publicly owned water, 32
gas, and sewer systems, transportation infrastructure, and the electrical utility 33
lines electric infrastructure necessary to meet the needs of prospective 34
employers for megasites. 35
(4) Support local governments or a partnership of local governments to fund 36
on-site preparation, including clearing, grading, or other related expenses for 37
megasites. 38
(4a) Support local governments or a partnership of local governments in 39
conducting due diligence, including, but not limited to, the following: site 40
characteristics, preliminary engineering reports for water and wastewater 41
provision to the site, assessments related to road and highway infrastructure 42
to serve the site, and other assessments as needed. 43
(5) Facilitate coordination between the economic development entities, the North 44
Carolina Department of Environmental Quality, and the North Carolina 45
Department of Transportation to expedite needs related to timely site 46
development. 47
… 48
"SECTION 11.11.(c) Definitions. – The following definitions apply in this section: 49
… 50 General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 664-Third Edition
(4) Government partnership. – Either (i) a North Carolina nonprofit entity that is 1
tax exempt under section 501(c)(3) or 501(c)(12) of the Internal Revenue 2
Code in partnership with one or more local governments or (ii) a group of 3
local governments. 4
… 5
"SECTION 11.11.(d) Allocation. – EDPNC shall allocate monies in the Fund on the 6
following basis: 7
… 8
(2) All other funds appropriated to the Fund for local government grants for the 9
acquisition of megasites determined pursuant to subdivision (1) of this 10
subsection. purposes described in subsection (a) of this section. A grant for 11
the acquisition of a megasite is limited to eighty-five percent (85%) of the 12
lesser of the property's purchase price or tax value. The percentage actually 13
provided in the grant shall be determined by EDPNC based on total 14
development needs for the megasite, prior investment in the megasite by one 15
or more local governments, the ability of one or more local governments to 16
invest in the megasite, and the ability and level of participation promised by 17
the local government in exchange for a grant from the Fund. Monies may only 18
be granted for, and used to acquire, a megasite for which (i) one or more local 19
governments have a binding option or offer to purchase and (ii) all basic due 20
diligence must be complete, including, but not limited to, boundary surveys, 21
title searches, State Historic Preservation Office reviews, and wetlands 22
delineation. 23
… 24
"SECTION 11.11.(f) Agreements Required. – Monies may shall be disbursed from the Fund 25
to EDPNC on a quarterly basis in four equal installments per year. EDPNC may use funds only 26
in accordance with agreements entered into between EDPNC and a local government or a 27
government partnership. The agreement must include all of the performance criteria, remedies, 28
and other safeguards required to secure the assistance provided to ready the megasite for a major 29
employer and must require EDPNC to recapture a proportionate amount of assistance provided 30
under this section for failure by a local government or government partnership to meet and 31
maintain the megasite for availability for the purposes for which the assistance was provided. 32
…." 33
SECTION 4. Section 11.12 of S.L. 2023-134 reads as rewritten: 34
"SECTION 11.12.(a) Funds appropriated by Section 11.4 11.4(d)(1) of S.L. 2022-74 to the 35
Department of Commerce (Department) and allocated to the nonprofit corporation with which 36
the Department contracts pursuant to G.S. 143B-431.01(b) that remain unspent as of June 30, 37
2023, April 1, 2025, shall be transferred to the North Carolina Selectsite Fund established in 38
subsection (c) of this section to be used for purposes consistent with subdivision (e)(1) of this 39
section. Of the funds appropriated from the Economic Development Project Reserve established 40
in Section 2.2 of this act to the Department to be allocated to the nonprofit corporation with which 41
the Department contracts pursuant to G.S. 143B-431.01(b), the sum of ten million dollars 42
($10,000,000) in nonrecurring funds for the 2024-2025 fiscal year shall be used to support local 43
governments or a partnership of local governments in conducting due diligence as described in 44
subdivision for the purposes described in subdivisions (b)(2), (b)(3), (b)(4), and (b)(5) of this 45
section. 46
"SECTION 11.12.(b) Purpose. – It is in the best economic and developmental interests of 47
the State to support the development of selectsites to ensure the State's ongoing competitiveness 48
for major manufacturing opportunities, including, but not limited to, the aerospace, automotive, 49
clean energy, food processing, semiconductor, and life science industries. The purpose of this 50
section is to establish a competitive grant program serving to do the following: 51 General Assembly Of North Carolina Session 2025
Senate Bill 664-Third Edition Page 7
(1) Identify and evaluate up to 15 20 selectsites of less than 1,000 acres for 1
preferred development and marketing. 2
(2) Assist local governments or a partnership of local governments in the 3
acquisition of a newly identified or existing selectsite. 4
(3) Support local governments or a partnership of local governments to analyze, 5
plan, install, or upgrade public infrastructure, including publicly owned water, 6
gas, and sewer systems; transportation infrastructure; and the electrical utility 7
lines electric infrastructure necessary to meet the needs of prospective 8
employers for selectsites. 9
(4) Support local governments or a partnership of local governments to fund 10
on-site preparation, including clearing, grading, or other related expenses for 11
selectsites. 12
(5) Support local governments or a partnership of local governments in 13
conducting due diligence, including, but not limited to, the following: site 14
characteristics, preliminary engineering reports for water and wastewater 15
provision to the site, assessments related to road and highway infrastructure 16
to serve the site, and other assessments as needed. 17
(6) Facilitate coordination between the economic development entities and the 18
North Carolina Department of Environmental Quality and the North Carolina 19
Department of Transportation to expedite needs related to timely site 20
development. 21
… 22
"SECTION 11.12.(e) Allocation. – EDPNC shall allocate monies in the Fund on the 23
following basis: 24
(1) Unspent funds transferred pursuant to subsection (a) of this section shall be 25
used for engaging a national site selection firm through a competitive bid 26
process to produce a report identifying and evaluating 15 selectsites for 27
preferred development and marketing, of which seven must be less than 500 28
acres and of which an additional two must be less than 100 acres. Further 29
unspent funds transferred pursuant to subsection (a) of this section shall be 30
used for engaging a national site selection firm through a competitive bid 31
process to produce a supplemental report identifying and evaluating up to five, 32
and no less than three, additional selectsites from the initial disaster declared 33
counties resulting from Tropical Storm Helene. 34
(2) Funds appropriated to the Fund for local government grants shall be allocated 35
for the purposes outlined in subdivisions (b)(2), (b)(3), (b)(4), and (b)(5) of 36
this section for selectsites determined pursuant to subdivision (1) of this 37
subsection. EDPNC shall prioritize local government grants that have the 38
greatest potential to reduce the time for site readiness and reduce the risk of 39
unforeseen conditions that could affect the site viability for advanced 40
manufacturing projects. EDPNC shall base the grant amount on total 41
development needs for the selectsite, prior investment in the selectsite by one 42
or more local governments, the ability of one or more local governments to 43
invest in the selectsite, and the ability and level of participation promised by 44
the local government in exchange for a grant from the Fund. Monies may only 45
be granted for, and used to acquire, a selectsite for which (i) one or more local 46
governments have a binding option or offer to purchase and (ii) all basic due 47
diligence has been completed, including, but not limited to, boundary surveys, 48
title searches, State Historic Preservation Office reviews, and wetlands 49
delineation. 50
… 51 General Assembly Of North Carolina Session 2025
Page 8 Senate Bill 664-Third Edition
"SECTION 11.12.(g) Agreements Required. – Monies may shall be disbursed from the Fund 1
to EDPNC on a quarterly basis in four equal installments per year. EDPNC may use funds only 2
in accordance with agreements entered into between EDPNC and a local government or a 3
government partnership. The agreement must include all of the performance criteria, remedies, 4
and other safeguards required to secure the assistance provided to ready the selectsite for a major 5
employer and must require EDPNC to recapture a proportionate amount of assistance provided 6
under this section for failure by a local government or government partnership to meet and 7
maintain the selectsite for availability for the purposes for which the assistance was provided. 8
…." 9
SECTION 5. Retroactively to October 25, 2024, Section 4C.13(b) of Session Law 10
2024-53 reads as rewritten: 11
"SECTION 4C.13.(b) This section is effective when it becomes law and expires January 12
31, 2025.July 31, 2025." 13
SECTION 6. This act is effective when it becomes law. 14