JDIG

On incentives and lobbying

ryanteaguebeckwith — Thu, 02 Apr 2009 09:45:15 -0400

Helping a company get incentives?

You don't necessarily have to register as a lobbyist.

A spokeswoman for the N.C. Department of Commerce said that under their reading of state laws, lobbying does not include assisting companies applying for financial incentives with the One North Carolina or JDIG programs.

"'Lobbying' is the attempt to influence legislative or executive action," Kathy Neal wrote in an e-mail to Dome. "'Executive action' specifically does not include a person (or the person's consultant) communicating with a public servant with respect to applying for a determination of eligibility (such as for incentives), or making an inquiry about or asserting a benefit, claim, right, entitlement, payment, etc."

The N.C. Secretary of State's office, which is the arbiter for lobbying registration, said that it would depend on the consultant's role. In some cases, the registration would not become public until after the incentives are approved.

That interpretation did not sit well with Bob Orr, a former state Supreme Court justice who is fighting the state's incentives system through the N.C. Institute for Constitutional Law.

"If they don't have to register as a lobbyist, they ought to," he said. "It would seem to me if you're negotiating to get taxpayer money from a government agency, then that's lobbying."

Orr: End incentives

ryanteaguebeckwith — Mon, 08 Oct 2007 10:49:22 -0400

Bob Orr proposes ending corporate incentives.

In a press conference this morning, the former Supreme Court justice said he would undo most of the state's economic development incentives programs if elected governor.

As part of his reform plan, he would:

* Create a task force to work on federal legislation limiting the use of incentives to lure companies from one state to another.

* Eliminate the One North Carolina program, the Job Development Investment Grant program and certain targeted tax credits.

* Require companies disclose offers from other companies and lobbyists involved; create a 45-day waiting period on any deals.

* Start an initiative focused on workforce development that would give companies up to $2,500 per worker for training.

Orr said the reforms would end the "incentives game," in which corporate lobbyists have argued that companies won't come to North Carolina without grants.

"We don't have to pay them cash grants to come here," he said. "This is a great place to do business and a great place to live."

Document(s):
orr-incentives.pdf

What is the JDIG program?

ryanteaguebeckwith — Mon, 17 Sep 2007 15:41:18 -0400

Answer:

The Job Development Investment Grant program gives annual cash grants to businesses that relocate or expand in North Carolina.

The program was signed into law by Gov. Mike Easley on Oct. 31, 2002, and became effective Jan. 1, 2003. It has been amended in 2003 and 2006.

Between 2004 and 2007, the committee promised more than $200 million in grants to companies such as Google, GlaxoSmithKline and Dell Computer, in exchange for pledges of more than 20,000 jobs.

The grants are paid over as many as a dozen years. Companies must meet specific hiring and other criteria each year before the grant is given. By law, a business can create as few as 10 new jobs to qualify, but typically it's at least 100.

The grants are approved by Economic Investment Committee, a five-member panel.

The governor appoints three people on committee: The secretaries of the state departments of Commerce and Revenue and the director of the Office of State Budget and Management. The other two are appointed by the Speaker of the House and the president pro tem of the Senate.

The committee decides on grants in closed-door sessions, though the final approval is done in an open meeting and the public can weigh in before each payment is made.