In April of this year, Representative Chuck McGrady (R-Henderson) introduced N.C. House Bill 616, with the title “North Carolina Benefit Corporation Act.” The bill was cosponsored by Josh Dobson (R-McDowell), Steve Ross (R-Alamance), and Lee Zachary (R-Yadkin).

H.B. 616 would have allowed new businesses to incorporate in North Carolina as benefit corporations. The bill was based on Delaware’s benefit corporation legislation, which Delaware enacted in 2013.

With thirty-four states having passed benefit corporation legislation (Texas and Kansas being the most recent), and with strong support from North Carolina businesses, the bill appeared to have a good chance of passage. On June 26th, however, the bill failed in the House, with 54 voting in favor and 60 against. You can read more about the bill here, and you can see a copy of the bill here.