North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S664 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 3
	3	+	S 2
4	4		SENATE BILL 664
5	5		Commerce and Insurance Committee Substitute Adopted 4/8/25
6		-	Third Edition Engrossed 4/10/25
7	6
8	7		Short Title: JMAC Flexibility/ABCLaws/Megasite/Selectsite. (Public)
9	8		Sponsors:
10	9		Referred to:
11	10		March 26, 2025
12		-	S664 -v-3
	11	+	S664 -v-2
13	12		A BILL TO BE ENTITLED 1
14	13		AN ACT TO ALLOW FLEX IBILITY IN THE EVENT OF NONCOMPLIANCE WI TH A 2
15	14		JMAC AGREEMENT, TO AMEND ABC LAWS TO EXPAND USE OF ALTERNATING 3
16		-	PROPRIETORSHIPS, TO AMEND MEGASITES AND SELECTSITES READINESS 4
17		-	PROGRAMS, AND TO EXT END THE TEMPORARY MO RATORIUM FOR CERTAIN 5
18		-	JDIG REQUIREMENTS. 6
19		-	The General Assembly of North Carolina enacts: 7
20		-	SECTION 1. G.S. 143B-437.012 reads as rewritten: 8
21		-	"§ 143B-437.012. Job Maintenance and Capital Development Fund. 9
22		-	… 10
23		-	(d) Eligibility. – A business is eligible for consideration for a grant under this section if 11
24		-	it satisfies the conditions of subdivision (1), (1a), (2), (2a), or (2b) of this subsection and satisfies 12
25		-	subdivision (4) of this subsection: 13
26		-	(1) The business is a major employer. A business is a major employer if the 14
27		-	business meets the following requirements: 15
28		-	a. The Department certifies that the business has invested or intends to 16
29		-	invest at least two hundred million dollars ($200,000,000) of private 17
30		-	funds in improvements to real property and additions to tangible 18
31		-	personal property in the project within a six-year period beginning 19
32		-	with the time the investment commences. 20
33		-	b. The business employs at least 2,000 full-time employees or equivalent 21
34		-	full-time contract employees at the project that is the subject of the 22
35		-	grant at the time the application is made, and the business agrees to 23
36		-	maintain at least 2,000 full-time employees or equivalent full-time 24
37		-	contract employees at the project for the full term of the grant 25
38		-	agreement. 26
39		-	c. The project is located in a development tier one area at the time the 27
40		-	business applies for a grant. 28
41		-	(1a) The business previously received a grant as a major employer under this 29
42		-	section and meets the following requirements: 30
43		-	a. The Department certifies that the business has invested or intends to 31
44		-	invest at least one hundred fifty million dollars ($150,000,000) of 32
45		-	private funds in improvements to real property and additions to 33
46		-	tangible personal property in the project within a six-year period 34
47		-	beginning with the time the investment commences. Amounts certified 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 664-Third Edition
49		-	as invested under sub-subdivision a. of subdivision (1) of this 1
50		-	subsection shall not be included in the amount required by this 2
51		-	sub-subdivision. 3
52		-	b. The business employs at least 2,000 full-time employees or equivalent 4
53		-	full-time contract employees at the project that is the subject of the 5
54		-	grant at the time the application is made and the business agrees to 6
55		-	maintain at least 2,000 full-time employees or equivalent full-time 7
56		-	contract employees at the project for the full term of the grant 8
57		-	agreement. 9
58		-	c. The project is at the same location as that for which a grant was 10
59		-	previously awarded under subdivision (1) of this subsection. 11
60		-	(2) The business is a large manufacturing employer. A business is a large 12
61		-	manufacturing employer if the business meets the following requirements: 13
62		-	a. The business is in manufacturing, as defined in G.S. 105-129.81, and 14
63		-	is converting its manufacturing process to change the product it 15
64		-	manufactures or is investing in its manufacturing process by 16
65		-	enhancing pollution controls or transitioning the manufacturing 17
66		-	process from using coal to using natural gas for the purpose of 18
67		-	becoming more energy efficient or reducing emissions. 19
68		-	b. The Department certifies that the business has invested or intends to 20
69		-	invest at least fifty million dollars ($50,000,000) of private funds in 21
70		-	improvements to real property and additions to tangible personal 22
71		-	property in the project within a five-year period beginning with the 23
72		-	time the investment commences. 24
73		-	c. The business meets one of the following employment requirements: 25
74		-	1. If in a development tier one area, the business employs at least 26
75		-	320 full-time employees at the project that is the subject of the 27
76		-	grant at the time the application is made, and the business 28
77		-	agrees to maintain at least 320 full-time employees at the 29
78		-	project for the full term of the grant. 30
79		-	2. If in a development tier two area with a population of less than 31
80		-	60,000 as of July 1, 2013, the business employs at least 800 32
81		-	full-time employees or equivalent full-time contract employees 33
82		-	at the project that is the subject of the grant at the time the 34
83		-	application is made, and the business agrees to maintain at least 35
84		-	800 full-time employees or equivalent full-time contract 36
85		-	employees at the project for the full term of the grant. 37
86		-	(2a) The business is a heritage manufacturing employer. A business is a heritage 38
87		-	manufacturing employer if the business meets the following requirements: 39
88		-	a. The business is in manufacturing, as defined in G.S. 143B-437.01, and 40
89		-	has been operating in this State for over 100 years. 41
90		-	b. The Department certifies that the business has invested or intends to 42
91		-	invest at least three hundred twenty-five million dollars 43
92		-	($325,000,000) of private funds in improvements to real property and 44
93		-	additions to tangible personal property in the project within a four-year 45
94		-	period beginning with the time the investment commences. 46
95		-	c. The business employs at least 1,050 full-time employees or equivalent 47
96		-	full-time contract employees in the State at the time the application is 48
97		-	made and the business agrees to (i) maintain at least 1,050 full-time 49
98		-	employees or equivalent full-time contract employees in the State for 50
99		-	the full term of the grant and (ii) retrain and relocate to a development 51 General Assembly Of North Carolina Session 2025
100		-	Senate Bill 664-Third Edition Page 3
101		-	tier two area at least 400 of those full-time employees or equivalent 1
102		-	full-time contract employees upon the commencement of commercial 2
103		-	production at its tier two area facility. 3
104		-	d. The business is operating in a development tier three area at the time 4
105		-	the business applies for a grant and the business is relocating to a 5
106		-	development tier two area with an estimated population of less than 6
107		-	63,000, according to the 2017 Certified County Population Estimates 7
108		-	published by the State Demographer's Office. 8
109		-	e. An agreement with a business under this subdivision may provide that 9
110		-	the grant paid out over the term of the agreement be in unequal annual 10
111		-	payments and in amounts deviating from the factors listed in 11
112		-	subsection (l) of this section for any individual annual payment, 12
113		-	provided the factors are considered in the aggregate award to be paid 13
114		-	to the business over the entire term of the agreement. 14
115		-	(2b) The business is a supply-chain-impact manufacturing employer. A business is 15
116		-	a supply-chain-impact manufacturing employer if the business meets the 16
117		-	following requirements: 17
118		-	a. The business is in manufacturing, as defined in G.S. 105-129.81, 18
119		-	manufactures a product used primarily and significantly in the 19
120		-	construction of residential and commercial buildings, and is investing 20
121		-	in its manufacturing process to transition away from utilizing 21
122		-	coal-based energy byproducts to other alternatives. 22
123		-	b. The Department certifies that the business has invested or intends to 23
124		-	invest at least one hundred ten million dollars ($110,000,000) of 24
125		-	private funds in improvements to real property and additions to 25
126		-	tangible personal property in the project within a five-year period 26
127		-	beginning with the time the investment commences. 27
128		-	c. The business and its affiliated companies (i) employ at least 420 28
129		-	full-time employees or equivalent full-time contract employees in the 29
130		-	State at the time the application is made and (ii) agree to maintain at 30
131		-	least 420 full-time employees or equivalent full-time contract 31
132		-	employees in the State for the full term of the grant. 32
133		-	d. The business has operations in a development tier two area at the time 33
134		-	the business applies for a grant, and the business agrees to maintain or 34
135		-	increase the development tier two area operations for the term of the 35
136		-	agreement. 36
137		-	… 37
138		-	(j) Agreement. – Unless the Secretary of Commerce determines that the project is no 38
139		-	longer eligible or appropriate for a grant under this section, the Department shall enter into an 39
140		-	agreement to provide a grant or grants for a project recommended by the Committee. Each grant 40
141		-	agreement (i) is binding and constitutes a continuing contractual obligation of the State and the 41
142		-	business. The grant agreement business, (ii) shall include the performance criteria, remedies, and 42
143		-	other safeguards recommended by the Committee or required by the Department.Department, 43
144		-	and (iii) shall contain the following provisions: 44
145		-	Each grant agreement shall contain a 45
146		-	(1) A provision prohibiting a business from receiving a payment or other benefit 46
147		-	under the agreement at any time when the business has received a notice of an 47
148		-	overdue tax debt and the overdue tax debt has not been satisfied or otherwise 48
149		-	resolved. 49
150		-	(2) A provision requiring the business to maintain an employment level. For the 50
151		-	purposes of this subsection, the employment level includes full-time 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 Senate Bill 664-Third Edition
	15	+	PROPRIETORSHIPS, AND TO AMEND MEGASITES AND SELECTSITES 4
	16	+	READINESS PROGRAMS. 5
	17	+	The General Assembly of North Carolina enacts: 6
	18	+	SECTION 1. G.S. 143B-437.012 reads as rewritten: 7
	19	+	"§ 143B-437.012. Job Maintenance and Capital Development Fund. 8
	20	+	… 9
	21	+	(d) Eligibility. – A business is eligible for consideration for a grant under this section if 10
	22	+	it satisfies the conditions of subdivision (1), (1a), (2), (2a), or (2b) of this subsection and satisfies 11
	23	+	subdivision (4) of this subsection: 12
	24	+	(1) The business is a major employer. A business is a major employer if the 13
	25	+	business meets the following requirements: 14
	26	+	a. The Department certifies that the business has invested or intends to 15
	27	+	invest at least two hundred million dollars ($200,000,000) of private 16
	28	+	funds in improvements to real property and additions to tangible 17
	29	+	personal property in the project within a six-year period beginning 18
	30	+	with the time the investment commences. 19
	31	+	b. The business employs at least 2,000 full-time employees or equivalent 20
	32	+	full-time contract employees at the project that is the subject of the 21
	33	+	grant at the time the application is made, and the business agrees to 22
	34	+	maintain at least 2,000 full-time employees or equivalent full-time 23
	35	+	contract employees at the project for the full term of the grant 24
	36	+	agreement. 25
	37	+	c. The project is located in a development tier one area at the time the 26
	38	+	business applies for a grant. 27
	39	+	(1a) The business previously received a grant as a major employer under this 28
	40	+	section and meets the following requirements: 29
	41	+	a. The Department certifies that the business has invested or intends to 30
	42	+	invest at least one hundred fifty million dollars ($150,000,000) of 31
	43	+	private funds in improvements to real property and additions to 32
	44	+	tangible personal property in the project within a six-year period 33
	45	+	beginning with the time the investment commences. Amounts certified 34
	46	+	as invested under sub-subdivision a. of subdivision (1) of this 35 General Assembly Of North Carolina Session 2025
	47	+	Page 2 Senate Bill 664-Second Edition
	48	+	subsection shall not be included in the amount required by this 1
	49	+	sub-subdivision. 2
	50	+	b. The business employs at least 2,000 full-time employees or equivalent 3
	51	+	full-time contract employees at the project that is the subject of the 4
	52	+	grant at the time the application is made and the business agrees to 5
	53	+	maintain at least 2,000 full-time employees or equivalent full-time 6
	54	+	contract employees at the project for the full term of the grant 7
	55	+	agreement. 8
	56	+	c. The project is at the same location as that for which a grant was 9
	57	+	previously awarded under subdivision (1) of this subsection. 10
	58	+	(2) The business is a large manufacturing employer. A business is a large 11
	59	+	manufacturing employer if the business meets the following requirements: 12
	60	+	a. The business is in manufacturing, as defined in G.S. 105-129.81, and 13
	61	+	is converting its manufacturing process to change the product it 14
	62	+	manufactures or is investing in its manufacturing process by 15
	63	+	enhancing pollution controls or transitioning the manufacturing 16
	64	+	process from using coal to using natural gas for the purpose of 17
	65	+	becoming more energy efficient or reducing emissions. 18
	66	+	b. The Department certifies that the business has invested or intends to 19
	67	+	invest at least fifty million dollars ($50,000,000) of private funds in 20
	68	+	improvements to real property and additions to tangible personal 21
	69	+	property in the project within a five-year period beginning with the 22
	70	+	time the investment commences. 23
	71	+	c. The business meets one of the following employment requirements: 24
	72	+	1. If in a development tier one area, the business employs at least 25
	73	+	320 full-time employees at the project that is the subject of the 26
	74	+	grant at the time the application is made, and the business 27
	75	+	agrees to maintain at least 320 full-time employees at the 28
	76	+	project for the full term of the grant. 29
	77	+	2. If in a development tier two area with a population of less than 30
	78	+	60,000 as of July 1, 2013, the business employs at least 800 31
	79	+	full-time employees or equivalent full-time contract employees 32
	80	+	at the project that is the subject of the grant at the time the 33
	81	+	application is made, and the business agrees to maintain at least 34
	82	+	800 full-time employees or equivalent full-time contract 35
	83	+	employees at the project for the full term of the grant. 36
	84	+	(2a) The business is a heritage manufacturing employer. A business is a heritage 37
	85	+	manufacturing employer if the business meets the following requirements: 38
	86	+	a. The business is in manufacturing, as defined in G.S. 143B-437.01, and 39
	87	+	has been operating in this State for over 100 years. 40
	88	+	b. The Department certifies that the business has invested or intends to 41
	89	+	invest at least three hundred twenty-five million dollars 42
	90	+	($325,000,000) of private funds in improvements to real property and 43
	91	+	additions to tangible personal property in the project within a four-year 44
	92	+	period beginning with the time the investment commences. 45
	93	+	c. The business employs at least 1,050 full-time employees or equivalent 46
	94	+	full-time contract employees in the State at the time the application is 47
	95	+	made and the business agrees to (i) maintain at least 1,050 full-time 48
	96	+	employees or equivalent full-time contract employees in the State for 49
	97	+	the full term of the grant and (ii) retrain and relocate to a development 50
	98	+	tier two area at least 400 of those full-time employees or equivalent 51 General Assembly Of North Carolina Session 2025
	99	+	Senate Bill 664-Second Edition Page 3
	100	+	full-time contract employees upon the commencement of commercial 1
	101	+	production at its tier two area facility. 2
	102	+	d. The business is operating in a development tier three area at the time 3
	103	+	the business applies for a grant and the business is relocating to a 4
	104	+	development tier two area with an estimated population of less than 5
	105	+	63,000, according to the 2017 Certified County Population Estimates 6
	106	+	published by the State Demographer's Office. 7
	107	+	e. An agreement with a business under this subdivision may provide that 8
	108	+	the grant paid out over the term of the agreement be in unequal annual 9
	109	+	payments and in amounts deviating from the factors listed in 10
	110	+	subsection (l) of this section for any individual annual payment, 11
	111	+	provided the factors are considered in the aggregate award to be paid 12
	112	+	to the business over the entire term of the agreement. 13
	113	+	(2b) The business is a supply-chain-impact manufacturing employer. A business is 14
	114	+	a supply-chain-impact manufacturing employer if the business meets the 15
	115	+	following requirements: 16
	116	+	a. The business is in manufacturing, as defined in G.S. 105-129.81, 17
	117	+	manufactures a product used primarily and significantly in the 18
	118	+	construction of residential and commercial buildings, and is investing 19
	119	+	in its manufacturing process to transition away from utilizing 20
	120	+	coal-based energy byproducts to other alternatives. 21
	121	+	b. The Department certifies that the business has invested or intends to 22
	122	+	invest at least one hundred ten million dollars ($110,000,000) of 23
	123	+	private funds in improvements to real property and additions to 24
	124	+	tangible personal property in the project within a five-year period 25
	125	+	beginning with the time the investment commences. 26
	126	+	c. The business and its affiliated companies (i) employ at least 420 27
	127	+	full-time employees or equivalent full-time contract employees in the 28
	128	+	State at the time the application is made and (ii) agree to maintain at 29
	129	+	least 420 full-time employees or equivalent full-time contract 30
	130	+	employees in the State for the full term of the grant. 31
	131	+	d. The business has operations in a development tier two area at the time 32
	132	+	the business applies for a grant, and the business agrees to maintain or 33
	133	+	increase the development tier two area operations for the term of the 34
	134	+	agreement. 35
	135	+	… 36
	136	+	(j) Agreement. – Unless the Secretary of Commerce determines that the project is no 37
	137	+	longer eligible or appropriate for a grant under this section, the Department shall enter into an 38
	138	+	agreement to provide a grant or grants for a project recommended by the Committee. Each grant 39
	139	+	agreement (i) is binding and constitutes a continuing contractual obligation of the State and the 40
	140	+	business. The grant agreement business, (ii) shall include the performance criteria, remedies, and 41
	141	+	other safeguards recommended by the Committee or required by the Department.Department, 42
	142	+	and (iii) shall contain the following provisions: 43
	143	+	Each grant agreement shall contain a 44
	144	+	(1) A provision prohibiting a business from receiving a payment or other benefit 45
	145	+	under the agreement at any time when the business has received a notice of an 46
	146	+	overdue tax debt and the overdue tax debt has not been satisfied or otherwise 47
	147	+	resolved. 48
	148	+	(2) A provision requiring the business to maintain an employment level. For the 49
	149	+	purposes of this subsection, the employment level includes full-time 50 General Assembly Of North Carolina Session 2025
	150	+	Page 4 Senate Bill 664-Second Edition
153	151		employees and equivalent full-time contract employees. The applicable 1
154	152		employment level is as follows: 2
155	153		a. Each grant If the grant agreement is for a business that is has qualified 3
156	154		as a major employer under subdivision (1) of subsection (d) of this 4
157	155		section shall contain section, a provision requiring the business to 5
158	156		maintain the employment level at the project that is the subject of the 6
159		-	agreement at the level required in subdivision (d)(1) of this section. 7
160		-	that is the lesser of the level it had at the time it applied for a grant 8
161		-	under this section or that it had at the time that the investment required 9
162		-	under subsection (d) of this section began. For the purposes of this 10
163		-	subsection, the employment level includes full-time employees and 11
164		-	equivalent full-time contract employees. The agreement shall further 12
165		-	specify that the amount of a grant shall be reduced in proportion to the 13
166		-	extent the business fails to maintain employment at this level and that 14
167		-	the business shall not be eligible for a grant in any year in which its 15
168		-	employment level is less than eighty percent (80%) of that 16
169		-	required.The provision shall further require, in the event the business 17
170		-	fails to maintain the required level of employment by more than 100 18
171		-	employees, a one percent (1%) reduction of the grant for every one 19
172		-	employee below that threshold. 20
173		-	b. Each If the grant agreement is for a business that is has not qualified 21
174		-	as a major employer under subdivision (1) of subsection (d) of this 22
175		-	section shall contain section, a provision requiring the business to 23
176		-	maintain the employment level required under that subdivision at the 24
177		-	project that is the subject of the grant. The agreement provision shall 25
178		-	further specify that the business is not eligible for a grant in any year 26
179		-	in which the business fails to maintain the employment level. 27
180		-	A grant agreement may obligate the State to make a series of grant payments over a period 28
181		-	of up to 10 years. Nothing in this section constitutes or authorizes a guarantee or assumption by 29
182		-	the State of any debt of any business or authorizes the taxing power or the full faith and credit of 30
183		-	the State to be pledged. 31
184		-	The Department shall cooperate with the Attorney General's office in preparing the 32
185		-	documentation for the grant agreement. The Attorney General shall review the terms of all 33
186		-	proposed agreements to be entered into under this section. To be effective against the State, an 34
187		-	agreement entered into under this section shall be signed personally by the Attorney General. 35
188		-	(k) Safeguards. – To ensure that public funds are used only to carry out the public 36
189		-	purposes provided in this section, the Department shall require that each business that receives a 37
190		-	grant under this section shall agree to meet performance criteria to protect the State's investment 38
191		-	and ensure that the projected benefits of the project are secured. The performance criteria to be 39
192		-	required shall include maintenance of an appropriate level of employment at specified levels of 40
193		-	compensation, compensation for required levels of employment, maintenance of health insurance 41
194		-	for all full-time employees, investment of a specified amount over the term of the agreement, and 42
195		-	any other criteria the Department considers appropriate. The agreement shall require the business 43
196		-	to repay or reimburse an appropriate portion of the grant based on the extent of any failure by the 44
197		-	business to meet the performance criteria. The agreement shall require the business to repay all 45
198		-	amounts received under the agreement and to forfeit any future grant payments if the business 46
199		-	fails to satisfy the investment eligibility requirement of this section. The use of contract 47
200		-	employees shall not be used to reduce compensation at the project that is the subject of the 48
201		-	agreement. 49
202		-	…." 50
203		-	SECTION 2. G.S. 18B-903 reads as rewritten: 51 General Assembly Of North Carolina Session 2025
204		-	Senate Bill 664-Third Edition Page 5
205		-	"§ 18B-903. Duration of permit; renewal and transfer. 1
206		-	… 2
207		-	(c1) Construction of Change in Ownership. – Nothing in subsection (c) of this section shall 3
208		-	be construed to limit alternating brewery proprietorships in which the holder of a brewery permit 4
209		-	under G.S. 18B-1101, 18B-1102, 18B-1103, 18B-1104, or 18B-1105 leases or otherwise makes 5
210		-	available its facility to another holder of a brewery permit. permit under G.S. 18B-1101, 6
211		-	18B-1102, 18B-1103, 18B-1104, or 18B-1105. For purposes of this section, if authorized by 7
212		-	federal law, the host brewery facility may also hold, at the same facility, brewery, unfortified 8
213		-	winery, fortified winery, and distillery permits pursuant to G.S. 18B-1101, 18B-1102, 18B-1104, 9
214		-	and 18B-1105. In this arrangement, the tenant brewery producer shall maintain title to the malt 10
215		-	beverages at all states of the brewing process and shall be responsible for all aspects associated 11
216		-	with manufacturing the product, including maintaining appropriate records, obtaining label 12
217		-	approval in its own name, and remitting the appropriate taxes. Alternating brewery 13
218		-	proprietorships are authorized between affiliated breweries, but shall not be used as a means to 14
219		-	allocate production quantities between affiliated breweries to obtain a malt beverage wholesaler 15
220		-	permit pursuant to G.S. 18B-1104(a)(8) where either brewery would not otherwise qualify for a 16
221		-	permit, and the Commission shall have no authority to grant an exemption to this requirement 17
222		-	pursuant to G.S. 18B-1116(b). 18
223		-	…." 19
224		-	SECTION 3. Section 11.11 of S.L. 2022-74, as amended by Section 11.11 of S.L. 20
225		-	2023-134, reads as rewritten: 21
226		-	"SECTION 11.11.(a) Purpose. – It is in the best economic and developmental interests of 22
227		-	the State to support the development of megasites to ensure the State's ongoing competitiveness 23
228		-	for major manufacturing opportunities, including, but not limited to, the aerospace, automotive, 24
229		-	clean energy, food processing, semiconductor, and life science industries. The purpose of this 25
230		-	section is to establish a competitive grant program serving to do the following: 26
231		-	(1) Identify and evaluate up to seven megasites for preferred development and 27
232		-	marketing. 28
233		-	(2) Assist local governments or a partnership of local governments in the 29
234		-	acquisition of a newly identified or existing megasite. 30
235		-	(3) Support local governments or a partnership of local governments to analyze, 31
236		-	plan, install, or upgrade public infrastructure, including publicly owned water, 32
237		-	gas, and sewer systems, transportation infrastructure, and the electrical utility 33
238		-	lines electric infrastructure necessary to meet the needs of prospective 34
239		-	employers for megasites. 35
240		-	(4) Support local governments or a partnership of local governments to fund 36
241		-	on-site preparation, including clearing, grading, or other related expenses for 37
242		-	megasites. 38
243		-	(4a) Support local governments or a partnership of local governments in 39
244		-	conducting due diligence, including, but not limited to, the following: site 40
245		-	characteristics, preliminary engineering reports for water and wastewater 41
246		-	provision to the site, assessments related to road and highway infrastructure 42
247		-	to serve the site, and other assessments as needed. 43
248		-	(5) Facilitate coordination between the economic development entities, the North 44
249		-	Carolina Department of Environmental Quality, and the North Carolina 45
250		-	Department of Transportation to expedite needs related to timely site 46
251		-	development. 47
252		-	… 48
253		-	"SECTION 11.11.(c) Definitions. – The following definitions apply in this section: 49
254		-	… 50 General Assembly Of North Carolina Session 2025
255		-	Page 6 Senate Bill 664-Third Edition
256		-	(4) Government partnership. – Either (i) a North Carolina nonprofit entity that is 1
257		-	tax exempt under section 501(c)(3) or 501(c)(12) of the Internal Revenue 2
258		-	Code in partnership with one or more local governments or (ii) a group of 3
259		-	local governments. 4
260		-	… 5
261		-	"SECTION 11.11.(d) Allocation. – EDPNC shall allocate monies in the Fund on the 6
262		-	following basis: 7
263		-	… 8
264		-	(2) All other funds appropriated to the Fund for local government grants for the 9
265		-	acquisition of megasites determined pursuant to subdivision (1) of this 10
266		-	subsection. purposes described in subsection (a) of this section. A grant for 11
267		-	the acquisition of a megasite is limited to eighty-five percent (85%) of the 12
268		-	lesser of the property's purchase price or tax value. The percentage actually 13
269		-	provided in the grant shall be determined by EDPNC based on total 14
270		-	development needs for the megasite, prior investment in the megasite by one 15
271		-	or more local governments, the ability of one or more local governments to 16
272		-	invest in the megasite, and the ability and level of participation promised by 17
273		-	the local government in exchange for a grant from the Fund. Monies may only 18
274		-	be granted for, and used to acquire, a megasite for which (i) one or more local 19
275		-	governments have a binding option or offer to purchase and (ii) all basic due 20
276		-	diligence must be complete, including, but not limited to, boundary surveys, 21
277		-	title searches, State Historic Preservation Office reviews, and wetlands 22
278		-	delineation. 23
279		-	… 24
280		-	"SECTION 11.11.(f) Agreements Required. – Monies may shall be disbursed from the Fund 25
281		-	to EDPNC on a quarterly basis in four equal installments per year. EDPNC may use funds only 26
282		-	in accordance with agreements entered into between EDPNC and a local government or a 27
283		-	government partnership. The agreement must include all of the performance criteria, remedies, 28
284		-	and other safeguards required to secure the assistance provided to ready the megasite for a major 29
285		-	employer and must require EDPNC to recapture a proportionate amount of assistance provided 30
286		-	under this section for failure by a local government or government partnership to meet and 31
287		-	maintain the megasite for availability for the purposes for which the assistance was provided. 32
288		-	…." 33
289		-	SECTION 4. Section 11.12 of S.L. 2023-134 reads as rewritten: 34
290		-	"SECTION 11.12.(a) Funds appropriated by Section 11.4 11.4(d)(1) of S.L. 2022-74 to the 35
291		-	Department of Commerce (Department) and allocated to the nonprofit corporation with which 36
292		-	the Department contracts pursuant to G.S. 143B-431.01(b) that remain unspent as of June 30, 37
293		-	2023, April 1, 2025, shall be transferred to the North Carolina Selectsite Fund established in 38
294		-	subsection (c) of this section to be used for purposes consistent with subdivision (e)(1) of this 39
295		-	section. Of the funds appropriated from the Economic Development Project Reserve established 40
296		-	in Section 2.2 of this act to the Department to be allocated to the nonprofit corporation with which 41
297		-	the Department contracts pursuant to G.S. 143B-431.01(b), the sum of ten million dollars 42
298		-	($10,000,000) in nonrecurring funds for the 2024-2025 fiscal year shall be used to support local 43
299		-	governments or a partnership of local governments in conducting due diligence as described in 44
300		-	subdivision for the purposes described in subdivisions (b)(2), (b)(3), (b)(4), and (b)(5) of this 45
301		-	section. 46
302		-	"SECTION 11.12.(b) Purpose. – It is in the best economic and developmental interests of 47
303		-	the State to support the development of selectsites to ensure the State's ongoing competitiveness 48
304		-	for major manufacturing opportunities, including, but not limited to, the aerospace, automotive, 49
305		-	clean energy, food processing, semiconductor, and life science industries. The purpose of this 50
306		-	section is to establish a competitive grant program serving to do the following: 51 General Assembly Of North Carolina Session 2025
307		-	Senate Bill 664-Third Edition Page 7
308		-	(1) Identify and evaluate up to 15 20 selectsites of less than 1,000 acres for 1
309		-	preferred development and marketing. 2
310		-	(2) Assist local governments or a partnership of local governments in the 3
311		-	acquisition of a newly identified or existing selectsite. 4
312		-	(3) Support local governments or a partnership of local governments to analyze, 5
313		-	plan, install, or upgrade public infrastructure, including publicly owned water, 6
314		-	gas, and sewer systems; transportation infrastructure; and the electrical utility 7
315		-	lines electric infrastructure necessary to meet the needs of prospective 8
316		-	employers for selectsites. 9
317		-	(4) Support local governments or a partnership of local governments to fund 10
318		-	on-site preparation, including clearing, grading, or other related expenses for 11
319		-	selectsites. 12
320		-	(5) Support local governments or a partnership of local governments in 13
321		-	conducting due diligence, including, but not limited to, the following: site 14
322		-	characteristics, preliminary engineering reports for water and wastewater 15
323		-	provision to the site, assessments related to road and highway infrastructure 16
324		-	to serve the site, and other assessments as needed. 17
325		-	(6) Facilitate coordination between the economic development entities and the 18
326		-	North Carolina Department of Environmental Quality and the North Carolina 19
327		-	Department of Transportation to expedite needs related to timely site 20
328		-	development. 21
	157	+	agreement that is the lesser of the level it had at the time it applied for 7
	158	+	a grant under this section or that it had at the time that the investment 8
	159	+	required under subsection (d) of this section began. For the purposes 9
	160	+	of this subsection, the employment level includes full-time employees 10
	161	+	and equivalent full-time contract employees. The agreement shall 11
	162	+	further specify that the amount of a grant shall be reduced in 12
	163	+	proportion to the extent the business fails to maintain employment at 13
	164	+	this level and that the business shall not be eligible for a grant in any 14
	165	+	year in which its employment level is less than eighty percent (80%) 15
	166	+	of that required.The provision shall further require, in the event the 16
	167	+	business fails to maintain the required level of employment by more 17
	168	+	than 100 employees, a one percent (1%) reduction of the grant for 18
	169	+	every one employee below that threshold. 19
	170	+	b. Each If the grant agreement is for a business that is has not qualified 20
	171	+	as a major employer under subdivision (1) of subsection (d) of this 21
	172	+	section shall contain section, a provision requiring the business to 22
	173	+	maintain the employment level required under that subdivision at the 23
	174	+	project that is the subject of the grant. The agreement provision shall 24
	175	+	further specify that the business is not eligible for a grant in any year 25
	176	+	in which the business fails to maintain the employment level. 26
	177	+	A grant agreement may obligate the State to make a series of grant payments over a period 27
	178	+	of up to 10 years. Nothing in this section constitutes or authorizes a guarantee or assumption by 28
	179	+	the State of any debt of any business or authorizes the taxing power or the full faith and credit of 29
	180	+	the State to be pledged. 30
	181	+	The Department shall cooperate with the Attorney General's office in preparing the 31
	182	+	documentation for the grant agreement. The Attorney General shall review the terms of all 32
	183	+	proposed agreements to be entered into under this section. To be effective against the State, an 33
	184	+	agreement entered into under this section shall be signed personally by the Attorney General. 34
	185	+	(k) Safeguards. – To ensure that public funds are used only to carry out the public 35
	186	+	purposes provided in this section, the Department shall require that each business that receives a 36
	187	+	grant under this section shall agree to meet performance criteria to protect the State's investment 37
	188	+	and ensure that the projected benefits of the project are secured. The performance criteria to be 38
	189	+	required shall include maintenance of an appropriate level of employment at specified levels of 39
	190	+	compensation, compensation for required levels of employment, maintenance of health insurance 40
	191	+	for all full-time employees, investment of a specified amount over the term of the agreement, and 41
	192	+	any other criteria the Department considers appropriate. The agreement shall require the business 42
	193	+	to repay or reimburse an appropriate portion of the grant based on the extent of any failure by the 43
	194	+	business to meet the performance criteria. The agreement shall require the business to repay all 44
	195	+	amounts received under the agreement and to forfeit any future grant payments if the business 45
	196	+	fails to satisfy the investment eligibility requirement of this section. The use of contract 46
	197	+	employees shall not be used to reduce compensation at the project that is the subject of the 47
	198	+	agreement. 48
	199	+	…." 49
	200	+	SECTION 2. G.S. 18B-903 reads as rewritten: 50
	201	+	"§ 18B-903. Duration of permit; renewal and transfer. 51 General Assembly Of North Carolina Session 2025
	202	+	Senate Bill 664-Second Edition Page 5
	203	+	… 1
	204	+	(c1) Construction of Change in Ownership. – Nothing in subsection (c) of this section shall 2
	205	+	be construed to limit alternating brewery proprietorships in which the holder of a brewery permit 3
	206	+	under G.S. 18B-1101, 18B-1102, 18B-1103, 18B-1104, or 18B-1105 leases or otherwise makes 4
	207	+	available its facility to another holder of a brewery permit. permit under G.S. 18B-1101, 5
	208	+	18B-1102, 18B-1103, 18B-1104, or 18B-1105. For purposes of this section, if authorized by 6
	209	+	federal law, the host brewery facility may also hold, at the same facility, brewery, unfortified 7
	210	+	winery, fortified winery, and distillery permits pursuant to G.S. 18B-1101, 18B-1102, 18B-1104, 8
	211	+	and 18B-1105. In this arrangement, the tenant brewery producer shall maintain title to the malt 9
	212	+	beverages at all states of the brewing process and shall be responsible for all aspects associated 10
	213	+	with manufacturing the product, including maintaining appropriate records, obtaining label 11
	214	+	approval in its own name, and remitting the appropriate taxes. Alternating brewery 12
	215	+	proprietorships are authorized between affiliated breweries, but shall not be used as a means to 13
	216	+	allocate production quantities between affiliated breweries to obtain a malt beverage wholesaler 14
	217	+	permit pursuant to G.S. 18B-1104(a)(8) where either brewery would not otherwise qualify for a 15
	218	+	permit, and the Commission shall have no authority to grant an exemption to this requirement 16
	219	+	pursuant to G.S. 18B-1116(b). 17
	220	+	…." 18
	221	+	SECTION 3. Section 11.11 of S.L. 2022-74, as amended by Section 11.11 of S.L. 19
	222	+	2023-134, reads as rewritten: 20
	223	+	"SECTION 11.11.(a) Purpose. – It is in the best economic and developmental interests of 21
	224	+	the State to support the development of megasites to ensure the State's ongoing competitiveness 22
	225	+	for major manufacturing opportunities, including, but not limited to, the aerospace, automotive, 23
	226	+	clean energy, food processing, semiconductor, and life science industries. The purpose of this 24
	227	+	section is to establish a competitive grant program serving to do the following: 25
	228	+	(1) Identify and evaluate up to seven megasites for preferred development and 26
	229	+	marketing. 27
	230	+	(2) Assist local governments or a partnership of local governments in the 28
	231	+	acquisition of a newly identified or existing megasite. 29
	232	+	(3) Support local governments or a partnership of local governments to analyze, 30
	233	+	plan, install, or upgrade public infrastructure, including publicly owned water, 31
	234	+	gas, and sewer systems, transportation infrastructure, and the electrical utility 32
	235	+	lines electric infrastructure necessary to meet the needs of prospective 33
	236	+	employers for megasites. 34
	237	+	(4) Support local governments or a partnership of local governments to fund 35
	238	+	on-site preparation, including clearing, grading, or other related expenses for 36
	239	+	megasites. 37
	240	+	(4a) Support local governments or a partnership of local governments in 38
	241	+	conducting due diligence, including, but not limited to, the following: site 39
	242	+	characteristics, preliminary engineering reports for water and wastewater 40
	243	+	provision to the site, assessments related to road and highway infrastructure 41
	244	+	to serve the site, and other assessments as needed. 42
	245	+	(5) Facilitate coordination between the economic development entities, the North 43
	246	+	Carolina Department of Environmental Quality, and the North Carolina 44
	247	+	Department of Transportation to expedite needs related to timely site 45
	248	+	development. 46
	249	+	… 47
	250	+	"SECTION 11.11.(c) Definitions. – The following definitions apply in this section: 48
	251	+	… 49
	252	+	(4) Government partnership. – Either (i) a North Carolina nonprofit entity that is 50
	253	+	tax exempt under section 501(c)(3) or 501(c)(12) of the Internal Revenue 51 General Assembly Of North Carolina Session 2025
	254	+	Page 6 Senate Bill 664-Second Edition
	255	+	Code in partnership with one or more local governments or (ii) a group of 1
	256	+	local governments. 2
	257	+	… 3
	258	+	"SECTION 11.11.(d) Allocation. – EDPNC shall allocate monies in the Fund on the 4
	259	+	following basis: 5
	260	+	… 6
	261	+	(2) All other funds appropriated to the Fund for local government grants for the 7
	262	+	acquisition of megasites determined pursuant to subdivision (1) of this 8
	263	+	subsection. purposes described in subsection (a) of this section. A grant for 9
	264	+	the acquisition of a megasite is limited to eighty-five percent (85%) of the 10
	265	+	lesser of the property's purchase price or tax value. The percentage actually 11
	266	+	provided in the grant shall be determined by EDPNC based on total 12
	267	+	development needs for the megasite, prior investment in the megasite by one 13
	268	+	or more local governments, the ability of one or more local governments to 14
	269	+	invest in the megasite, and the ability and level of participation promised by 15
	270	+	the local government in exchange for a grant from the Fund. Monies may only 16
	271	+	be granted for, and used to acquire, a megasite for which (i) one or more local 17
	272	+	governments have a binding option or offer to purchase and (ii) all basic due 18
	273	+	diligence must be complete, including, but not limited to, boundary surveys, 19
	274	+	title searches, State Historic Preservation Office reviews, and wetlands 20
	275	+	delineation. 21
329	276		… 22
330		-	"SECTION 11.12.(e) Allocation. – EDPNC shall allocate monies in the Fund on the 23
331		-	following basis: 24
332		-	(1) Unspent funds transferred pursuant to subsection (a) of this section shall be 25
333		-	used for engaging a national site selection firm through a competitive bid 26
334		-	process to produce a report identifying and evaluating 15 selectsites for 27
335		-	preferred development and marketing, of which seven must be less than 500 28
336		-	acres and of which an additional two must be less than 100 acres. Further 29
337		-	unspent funds transferred pursuant to subsection (a) of this section shall be 30
338		-	used for engaging a national site selection firm through a competitive bid 31
339		-	process to produce a supplemental report identifying and evaluating up to five, 32
340		-	and no less than three, additional selectsites from the initial disaster declared 33
341		-	counties resulting from Tropical Storm Helene. 34
342		-	(2) Funds appropriated to the Fund for local government grants shall be allocated 35
343		-	for the purposes outlined in subdivisions (b)(2), (b)(3), (b)(4), and (b)(5) of 36
344		-	this section for selectsites determined pursuant to subdivision (1) of this 37
345		-	subsection. EDPNC shall prioritize local government grants that have the 38
346		-	greatest potential to reduce the time for site readiness and reduce the risk of 39
347		-	unforeseen conditions that could affect the site viability for advanced 40
348		-	manufacturing projects. EDPNC shall base the grant amount on total 41
349		-	development needs for the selectsite, prior investment in the selectsite by one 42
350		-	or more local governments, the ability of one or more local governments to 43
351		-	invest in the selectsite, and the ability and level of participation promised by 44
352		-	the local government in exchange for a grant from the Fund. Monies may only 45
353		-	be granted for, and used to acquire, a selectsite for which (i) one or more local 46
354		-	governments have a binding option or offer to purchase and (ii) all basic due 47
355		-	diligence has been completed, including, but not limited to, boundary surveys, 48
356		-	title searches, State Historic Preservation Office reviews, and wetlands 49
357		-	delineation. 50
358		-	… 51 General Assembly Of North Carolina Session 2025
359		-	Page 8 Senate Bill 664-Third Edition
360		-	"SECTION 11.12.(g) Agreements Required. – Monies may shall be disbursed from the Fund 1
361		-	to EDPNC on a quarterly basis in four equal installments per year. EDPNC may use funds only 2
362		-	in accordance with agreements entered into between EDPNC and a local government or a 3
363		-	government partnership. The agreement must include all of the performance criteria, remedies, 4
364		-	and other safeguards required to secure the assistance provided to ready the selectsite for a major 5
365		-	employer and must require EDPNC to recapture a proportionate amount of assistance provided 6
366		-	under this section for failure by a local government or government partnership to meet and 7
367		-	maintain the selectsite for availability for the purposes for which the assistance was provided. 8
368		-	…." 9
369		-	SECTION 5. Retroactively to October 25, 2024, Section 4C.13(b) of Session Law 10
370		-	2024-53 reads as rewritten: 11
371		-	"SECTION 4C.13.(b) This section is effective when it becomes law and expires January 12
372		-	31, 2025.July 31, 2025." 13
373		-	SECTION 6. This act is effective when it becomes law. 14
	277	+	"SECTION 11.11.(f) Agreements Required. – Monies may shall be disbursed from the Fund 23
	278	+	to EDPNC on a quarterly basis in four equal installments per year. EDPNC may use funds only 24
	279	+	in accordance with agreements entered into between EDPNC and a local government or a 25
	280	+	government partnership. The agreement must include all of the performance criteria, remedies, 26
	281	+	and other safeguards required to secure the assistance provided to ready the megasite for a major 27
	282	+	employer and must require EDPNC to recapture a proportionate amount of assistance provided 28
	283	+	under this section for failure by a local government or government partnership to meet and 29
	284	+	maintain the megasite for availability for the purposes for which the assistance was provided. 30
	285	+	…." 31
	286	+	SECTION 4. Section 11.12 of S.L. 2023-134 reads as rewritten: 32
	287	+	"SECTION 11.12.(a) Funds appropriated by Section 11.4 11.4(d)(1) of S.L. 2022-74 to the 33
	288	+	Department of Commerce (Department) and allocated to the nonprofit corporation with which 34
	289	+	the Department contracts pursuant to G.S. 143B-431.01(b) that remain unspent as of June 30, 35
	290	+	2023, April 1, 2025, shall be transferred to the North Carolina Selectsite Fund established in 36
	291	+	subsection (c) of this section to be used for purposes consistent with subdivision (e)(1) of this 37
	292	+	section. Of the funds appropriated from the Economic Development Project Reserve established 38
	293	+	in Section 2.2 of this act to the Department to be allocated to the nonprofit corporation with which 39
	294	+	the Department contracts pursuant to G.S. 143B-431.01(b), the sum of ten million dollars 40
	295	+	($10,000,000) in nonrecurring funds for the 2024-2025 fiscal year shall be used to support local 41
	296	+	governments or a partnership of local governments in conducting due diligence as described in 42
	297	+	subdivision for the purposes described in subdivisions (b)(2), (b)(3), (b)(4), and (b)(5) of this 43
	298	+	section. 44
	299	+	"SECTION 11.12.(b) Purpose. – It is in the best economic and developmental interests of 45
	300	+	the State to support the development of selectsites to ensure the State's ongoing competitiveness 46
	301	+	for major manufacturing opportunities, including, but not limited to, the aerospace, automotive, 47
	302	+	clean energy, food processing, semiconductor, and life science industries. The purpose of this 48
	303	+	section is to establish a competitive grant program serving to do the following: 49
	304	+	(1) Identify and evaluate up to 15 20 selectsites of less than 1,000 acres for 50
	305	+	preferred development and marketing. 51 General Assembly Of North Carolina Session 2025
	306	+	Senate Bill 664-Second Edition Page 7
	307	+	(2) Assist local governments or a partnership of local governments in the 1
	308	+	acquisition of a newly identified or existing selectsite. 2
	309	+	(3) Support local governments or a partnership of local governments to analyze, 3
	310	+	plan, install, or upgrade public infrastructure, including publicly owned water, 4
	311	+	gas, and sewer systems; transportation infrastructure; and the electrical utility 5
	312	+	lines electric infrastructure necessary to meet the needs of prospective 6
	313	+	employers for selectsites. 7
	314	+	(4) Support local governments or a partnership of local governments to fund 8
	315	+	on-site preparation, including clearing, grading, or other related expenses for 9
	316	+	selectsites. 10
	317	+	(5) Support local governments or a partnership of local governments in 11
	318	+	conducting due diligence, including, but not limited to, the following: site 12
	319	+	characteristics, preliminary engineering reports for water and wastewater 13
	320	+	provision to the site, assessments related to road and highway infrastructure 14
	321	+	to serve the site, and other assessments as needed. 15
	322	+	(6) Facilitate coordination between the economic development entities and the 16
	323	+	North Carolina Department of Environmental Quality and the North Carolina 17
	324	+	Department of Transportation to expedite needs related to timely site 18
	325	+	development. 19
	326	+	… 20
	327	+	"SECTION 11.12.(e) Allocation. – EDPNC shall allocate monies in the Fund on the 21
	328	+	following basis: 22
	329	+	(1) Unspent funds transferred pursuant to subsection (a) of this section shall be 23
	330	+	used for engaging a national site selection firm through a competitive bid 24
	331	+	process to produce a report identifying and evaluating 15 selectsites for 25
	332	+	preferred development and marketing, of which seven must be less than 500 26
	333	+	acres and of which an additional two must be less than 100 acres. Further 27
	334	+	unspent funds transferred pursuant to subsection (a) of this section shall be 28
	335	+	used for engaging a national site selection firm through a competitive bid 29
	336	+	process to produce a supplemental report identifying and evaluating up to five, 30
	337	+	and no less than three, additional selectsites from the initial disaster declared 31
	338	+	counties resulting from Tropical Storm Helene. 32
	339	+	(2) Funds appropriated to the Fund for local government grants shall be allocated 33
	340	+	for the purposes outlined in subdivisions (b)(2), (b)(3), (b)(4), and (b)(5) of 34
	341	+	this section for selectsites determined pursuant to subdivision (1) of this 35
	342	+	subsection. EDPNC shall prioritize local government grants that have the 36
	343	+	greatest potential to reduce the time for site readiness and reduce the risk of 37
	344	+	unforeseen conditions that could affect the site viability for advanced 38
	345	+	manufacturing projects. EDPNC shall base the grant amount on total 39
	346	+	development needs for the selectsite, prior investment in the selectsite by one 40
	347	+	or more local governments, the ability of one or more local governments to 41
	348	+	invest in the selectsite, and the ability and level of participation promised by 42
	349	+	the local government in exchange for a grant from the Fund. Monies may only 43
	350	+	be granted for, and used to acquire, a selectsite for which (i) one or more local 44
	351	+	governments have a binding option or offer to purchase and (ii) all basic due 45
	352	+	diligence has been completed, including, but not limited to, boundary surveys, 46
	353	+	title searches, State Historic Preservation Office reviews, and wetlands 47
	354	+	delineation. 48
	355	+	… 49
	356	+	"SECTION 11.12.(g) Agreements Required. – Monies may shall be disbursed from the Fund 50
	357	+	to EDPNC on a quarterly basis in four equal installments per year. EDPNC may use funds only 51 General Assembly Of North Carolina Session 2025
	358	+	Page 8 Senate Bill 664-Second Edition
	359	+	in accordance with agreements entered into between EDPNC and a local government or a 1
	360	+	government partnership. The agreement must include all of the performance criteria, remedies, 2
	361	+	and other safeguards required to secure the assistance provided to ready the selectsite for a major 3
	362	+	employer and must require EDPNC to recapture a proportionate amount of assistance provided 4
	363	+	under this section for failure by a local government or government partnership to meet and 5
	364	+	maintain the selectsite for availability for the purposes for which the assistance was provided. 6
	365	+	…." 7
	366	+	SECTION 5. This act is effective when it becomes law. 8