North Carolina HB 335: Aid Rapid Response to States of Emergency.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2013 
H 1 
HOUSE BILL 335 
 
 
Short Title: Aid Rapid Response to States of Emergency. (Public) 
Sponsors: Representatives Arp, Howard, Carney, and Hanes (Primary Sponsors). 
For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site. 
Referred to: Finance. 
March 20, 2013 
*H335-v-1* 
A BILL TO BE ENTITLED 1 
AN   ACT   TO   FACILITATE RAPID   RESPONSE   BY   BUSINESSES   TO   STATES   OF 2 
EMERGENCY. 3 
Whereas, during times of storm, flood, fire, earthquake, hurricane, or other disaster 4 
or emergency, many businesses bring in  resources and personnel from other states throughout 5 
the United States on a temporary basis to expedite the often enormous and overwhelming task 6 
of cleaning up, restoring, and repairing infrastructure in the State; and 7 
Whereas,   this   may   involve   the   need   for   out-of-state businesses,   including 8 
out-of-state affiliates  of  businesses  based  in  the  State,  to  bring  in  resources,  property,  or 9 
personnel  that  previously  have  had  no  connection  to  the  State  and  to  perform  activities  in  the 10 
State, including repairing, renovating, installing, building, rendering services, or other business 11 
activities  relating  to  infrastructure, so  as  to  require  out-of-state personnel  to  be  located  in  the 12 
State for extended periods of time to perform such activities; and 13 
Whereas, during such time of operating in the State on a temporary basis solely for 14 
purposes  of  helping  the  State's  infrastructure  recover  from  the  disaster  or  emergency,  these 15 
businesses and individual employees should not be burdened by any requirements for business 16 
and employee taxes as a result of such activities in the State for the temporary period; and 17 
Whereas, the State's nexus and residency thresholds are intended for businesses and 18 
individuals  who  are  in  the  State  as  part  of  the  conduct  of  regular  business  operations  or  who 19 
intend  to  reside  in  the  State  and  should  not  be  directed  at  businesses  and  individuals  coming 20 
into the State on a temporary basis to provide help and assistance in response to a declared state 21 
of emergency; and 22 
Whereas, to ensure that businesses may focus on quick response to the needs of the 23 
State and its citizens during a state of emergency, it is appropriate for the Legislature to deem 24 
that  such  activity  for  a  reasonable  period  of  time  before,  during,  and  after  the  disaster  or 25 
emergency   for  repair and  restoration  of  the  often  devastating  damage  to  property   and 26 
infrastructure  in  the  State  shall  not  establish  presence,  residency,  doing  business  in  the  State, 27 
nor  any  other  criteria  for  purposes  of  certain  State  and  local  taxes,  licensing,  and  regulatory 28 
requirements; Now, therefore, 29 
The General Assembly of North Carolina enacts: 30 
 31 
PART I. GENERAL PROVISIONS 32 
SECTION 1.(a)  Chapter 166A of the General Statutes is amended by adding a new 33 
Article to read: 34 
"Article 6. 35 

General Assembly of North Carolina Session 2013 
Page 2   H335 [Edition 1] 
"Facilitation of Rapid Response by Businesses to States of Emergency. 1 
"§ 166A-70.  Definitions. 2 
The following definitions apply in this Article: 3 
(1) Disaster  or emergency-related  work. – Repairing,  renovating,  installing, 4 
building,   rendering   services, or   other   business   activities   that   relate  to 5 
infrastructure  that  has  been  damaged, impaired, or  destroyed  during  an 6 
emergency, as that term is defined in G.S. 166A-19.3, regardless of whether 7 
the  infrastructure  that  has  been  damaged,  impaired,  or  destroyed  is  within 8 
the geographical area covered by a state of emergency. 9 
(2) Disaster period. – A period that begins within 14 days of the date that a state 10 
of  emergency  is  declared  under  Article  1A  of  this  Chapter  and  that  extends 11 
for a period of 60 calendar days after the state of emergency expires. 12 
(3) Infrastructure. – Property and equipment owned or used by communications 13 
networks,  electric  generation,  transmission  and  distribution  systems,  gas 14 
distribution  systems,  water  pipelines,  public  roads  and  bridges, and  related 15 
support facilities that service multiple customers or residents, including, but 16 
not  limited  to, real  and  personal  property  such  as  buildings,  offices,  lines, 17 
poles, pipes, structures, and equipment. 18 
(4) Out-of-state  business. – A  business  entity  that,  for  the current taxable  year 19 
and  the  preceding  three  taxable  years, (i) has  no  presence  in  the  State, (ii) 20 
conducts  no  business  in  the  State, (iii)  has  no  registrations  or  tax  filings  in 21 
the State, and (iv) has no nexus to the State prior to the declaration of a state 22 
of emergency, whose services are requeste