Section 1 adds a new Part 23 to Article 10 of Chapter 143B creating the North Carolina Rural Job Creation Fund. 

New GS 143B-437.135 names the new part the “North Carolina Rural Job Creation Fund.”

New GS 143B-437.136 establishes definitions for the following sixteen terms: affiliate, business concern, closing date, department, development tier area, earned job factor, full-time employee, growth investment, investment authority, net full-time employee, principal business operations, private contributions, repayment amount, reparable grant, rural county, and rural fund.

New GS 143B-437.137 establishes the application process for approval as a rural fund beginning October 1, 2017.  The application must include total investment authority sought, license as either a rural business investment company or a small business investment company (both terms defined under federal law), evidence that the applicant has invested at least $100 million in nonpublic companies located in communities with less than 50,000 residents, and an affidavit from each investor stating the investor’s amount of contributions to the fund.  Requires the Department of Commerce (Department) to make application determinations by November 30, 2017, and limits approval to no more than $100 million in investment authority (if multiple applicants qualify, Department must apportion investment authority among qualified applicants).  Limits Department’s ability to deny applications only in instances where the applicant does not provide all required information, affidavits indicate that private contributions of less than 50% of requested investment authority, or the maximum amount of investment authority has already been granted.  Provides for appeal process upon denial of application.  Requires fund to secure private contributions within 60 days of approval and provide confirmation of contributions within 65 days of approval.  Failure results in forfeiture of approval.

New GS 143B-437.138 establishes the NC Rural Job Creation Fund as a special revenue fund within the Department of Commerce.  Requires the Department and the fund to execute an agreement under which the Department makes allocations to the fund and the fund’s obligation to invest funds received.

New GS 143B-437.139 sets out conditions under which the Department is required to demand repayment of grants, including failure to invest all monies within three years of receipt, failure to maintain growth investments equal to 100% of its investment authority or exits the program with less than 100% of its investment authority invested in growth investments, provides more than $5 million to a single business concern, or makes investments that constitute a conflict of interest with investors.  Sets out notice requirements for repayment.

New GS 143B-437.140 authorizes a rural fund to seek a written opinion from the Department on whether a particular investment meets the requirements of Part 23.  If requested, the Department must render a determination within fifteen days.

New GS 143B-437.141 sets out various reporting requirements for rural funds and the Department, and authorizes the Department to adopt rules necessary to implement Part 23.

New GS 143B-437.142 requires the Department to calculate and assess annual fees on rural funds under a formula prescribed in this section.

New GS 143B-437.143 establishes procedures by which a rural fund exists from the grant program.

Section 2 of the bill appropriates $50 million in nonrecurring funds from the General Fund in 2017-18 to the NC Rural Job Creation Fund.