A BILL TO BE ENTITLED
AN ACT to provide that a nonprofit corporation is eligible to receive a state‑funded grant only if it meets certain criteria.
The General Assembly of North Carolina enacts:
SECTION 1.  Part 3 of Article 6 of Chapter 143C of the General Statutes is amended by adding a new section to read:
"§ 143C‑6‑24.  Criteria establishing eligibility of nonprofit to receive State funds.
(a)	Eligibility of Nonprofit to Receive State Grant. – Notwithstanding any other provision of law, no State funds shall be awarded as a grant to a non‑State entity that is a nonprofit corporation unless the nonprofit corporation satisfies all of the following criteria during the fiscal year for which the grant is made:
(1)	At least thirty‑five percent (35%) of the funding for the nonprofit corporation is from private sources.
(2)	The administrative expenses of the nonprofit corporation do not exceed fifteen percent (15%) of the total budget or receipts for the nonprofit corporation.
(b)	Suspension and Recovery of Funds for Noncompliance. – If a nonprofit corporation that receives a State grant violates subsection (a) of this section, then the Office of State Budget and Management may suspend further disbursement of funds to the nonprofit corporation and try to recover grant funds already disbursed pursuant to G.S. 143C‑6‑23(f).
(c)	Certification of Compliance. – A non‑State entity that is a nonprofit corporation that receives a State grant shall certify annually whether it is in compliance with this section pursuant to G.S. 143C‑6‑23(d)."
SECTION 2.  G.S. 143C‑6‑23(d)(6) reads as rewritten:
"(6)	Establish mandatory periodic reporting requirements for grantees and subgrantees, including methods of reporting, to provide financial and program performance information. The mandatory periodic reporting requirements shall require grantees and subgrantees to file with the State Auditor copies of reports and statements that are filed with State agencies pursuant to this subsection. Compliance with the mandatory periodic reporting requirements of this subdivision shall not require grantees and subgrantees to file with the State Auditor the information described in subsections (b) and (c) of this section. The mandatory periodic reporting requirements shall require that a grantee or subgrantee that is a nonprofit corporation certify annually whether it is in compliance with G.S. 143C‑6‑24."
SECTION 3.  This act becomes effective July 1, 2010, and applies to grants of State funds awarded on or after that date.