LOCAL MEAT PROCESSORS GRANTS/MARKETING FUNDS. (NEW)

View NCGA Bill Details2019-2020 Session
House Bill 1201 (Public) Filed Tuesday, May 26, 2020
AN ACT TO PROVIDE FUNDING FOR GRANTS TO SMALL AND INDEPENDENT MEAT PROCESSORS TO ALLEVIATE NEGATIVE FOOD SUPPLY CHAIN IMPACTS DUE TO THE COVID-19 PANDEMIC AND FOR TECHNOLOGY-BASED MARKETING TO RESPOND TO COVID-19 RELATED CHANGES IN CONSUMER PURCHASES OF FOOD AND TO MAKE TECHNICAL AND CLARIFYING CHANGES TO THE NORTH CAROLINA FARM ACT OF 2019-2020.
Intro. by Elmore, Howard.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (Jun 25 2020)

SOG comments (1):

Long title change

House committee substitute to the 1st edition changed the long title.  Original title was AN ACT TO PROVIDE FUNDING FOR GRANTS TO SMALL AND INDEPENDENT MEAT PROCESSORS TO ALLEVIATE NEGATIVE FOOD SUPPLY CHAIN IMPACTS DUE TO THE COVID-19 PANDEMIC.

H 1201

Bill Summaries:

  • Summary date: Jun 24 2020 - More information

    House amendment #3 makes the following changes to the 4th edition.

    Requires eligible meat processing facilities to submit with their grant application to the Department of Agriculture and Consumer Services the applicant's plan for protecting its employees from COVID-19. 


  • Summary date: Jun 23 2020 - More information

    House amendment makes the following changes to the 4th edition.

    Broadens one of the pathways for being an eligible meat processing facility for grants awarded pursuant to the act, to include plants that meet the previously specified requirements and are otherwise regulated by the USDA, as an alternative to other inspection requirements. 


  • Summary date: Jun 19 2020 - More information

    House committee substitute makes the following changes to the 3rd edition.

    Regarding grants authorized to be administered by the Department of Agriculture and Consumer Services under the act, expands facility eligibility to include catfish aquaculture operations that raise and process catfish.


  • Summary date: Jun 17 2020 - More information

    House committee substitute makes the following changes to the 2nd edition.

    Adds the following content.

    Amends GS 106-1070 to rename the NC Sweetpotato Advisory Council as the NC Sweetpotato Quality and Branding Advisory Council (council). Establishes the council within the Department of Agriculture and Consumer Services, with members appointed by the NC Sweetpotato Commission (Commission; previously, appointed by the Commissioner of Agriculture (Commissioner)). Provides for the Commissioner to serve as chair. Adds the Executive Director of the Commission to the council. Provides for other advisors selected by the Commission, rather than the Commissioner. Adds member duties including advising the Commissioner on plant pest regulatory issues. Requires quarterly meetings or meeting on an as needed basis upon the Commissioner's request. Makes conforming changes to GS 106-1066 and GS 106-1069.

    Changes the act's long title.


  • Summary date: Jun 16 2020 - More information

    House committee substitute makes the following changes to the 1st edition.

    Adds to the legislative findings concerning the impact of the COVID-19 emergency on small livestock producers and independent meat processors, as well as consumers.

    Changes the fund transfer directive to now direct the State Controller to transfer $17.7 million, rather than $25 million, from the Coronavirus Relief Reserve to the Coronavirus Relief Fund (both established by SL 2020-4) for the 2019-20 fiscal year. Appropriates the transferred funds on a nonrecurring basis to the Department of Agriculture and Consumer Services (DACS) for the 2019-20 fiscal year. Maintains availability of the funds until December 30, 2020. Makes organizational changes.

    Previously, required all appropriated funds to be used for grants to local meat processors. Now, allocates $15 million of the funds to provide grants and $2.7 million for technology-based marketing initiatives that support the agriculture industry, as specified.

    Now more specifically authorizes DACS to provide the following three categories of grants: capacity enhancement grant, workforce development grant, and planning grant. Describes the availability and permitted uses of each grant, with capacity enhancement and workforce development grants provided to eligible meat processing facilities and planning grants available to nonprofits and higher education institutions. Maintains the eligibility requirements for facilities to receive a grant. Now allows for prioritization of projects that will create additional jobs (no longer specifying priority for projects that will create additional jobs at the facility), and requires recipients to match funds at $1 for every $2 in grant funds (previously, authorized DACS to set grant maximums and matching requirements).

    Maintains the previously provided reporting requirements. Now requires the February 1, 2021, report to include the types and impacts of technology-based advertising funded by the act. 

    No longer provides for the repeal of the grant program provisions if an allocation made in this act is disallowed under federal law. However, maintains the requirement for DACS to transfer the disallowed allocation as specified for ultimate transfer back to the Coronavirus Relief Reserve.

    Changes the act's titles.


  • Summary date: May 26 2020 - More information

    States legislative findings concerning the impact of the COVID-19 emergency on small livestock producers and independent meat processors.

    Directs the State Controller to transfer $25 million from the Coronavirus Relief Reserve to the Coronavirus Relief Fund (both established by SL 2020-4) for the 2019-20 fiscal year. Appropriates the transferred funds on a nonrecurring basis to the Department of Agriculture and Consumer Services (DACS) for the 2019-20 fiscal year. Provides for the funds to remain available until December 30, 2020.

    Requires DACS to allocate the appropriated funds by providing grants to eligible meat processing facilities consistent with the identified US Department of Treasury guidance or subsequent congressional act. Requires DACS to develop policies and procedures for the disbursement of grants that includes four specified restrictions and requirements, including that grant eligibility be restricted to meat processing plants that contract with independent livestock producers to process animals owned by the producers, and the USDA contracts with DACS to conduct federal inspection activities authorized by federal law at the plant, or the plant is a State-inspected facility. Also provides for use restrictions, prioritization of projects with job creation, and setting grant maximums and matching requirements.

    Directs DACS to report to the specified NCGA committee and division by October 1, 2020, on its distribution of funds, and by February 1, 2021, on the use of funds by recipients.

    Provides for repayment of grant funding for fixtures or equipment purchased with the grant funds and disposed of, as defined, during a period of time DACS can specify following their placement in service. 

    Provides for the repeal of the grant program provisions if an allocation made in this act is disallowed under federal law, and requires DACS to transfer the disallowed allocation as specified for ultimate transfer back to the Coronavirus Relief Reserve.


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