OMNIMBUS COVID-19 RESPONSE FUNDS. (NEW)

View NCGA Bill Details2019-2020 Session
House Bill 1038 (Public) Filed Tuesday, April 28, 2020
AN ACT MAKING OMNIBUS APPROPRIATIONS OF FEDERAL FUNDS FOR COVID-19 RESPONSE AND RELIEF EFFORTS IN NORTH CAROLINA, AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON COVID-19.
Intro. by Lambeth, Carney, Dobson, P. Jones.

Status: Re-ref to the Com on Health, if favorable, Rules, Calendar, and Operations of the House (House action) (May 14 2020)

SOG comments (1):

Long title change

House committee substitute to the 1st edition changed the long title. Original long title was AN ACT PROVIDING RELIEF TO VARIOUS PUBLIC AND PRIVATE ENTITIES OF THE STATE IN ORDER TO EXPAND CAPACITY FOR PUBLIC HEALTH AND SAFETY TO ADDRESS THE COVID-19 EMERGENCY, AS RECOMMENDED BY THE HEALTH CARE WORKING GROUP OF THE HOUSE SELECT COMMITTEE ON COVID-19.

 

H 1038

Bill Summaries:

  • Summary date: Apr 29 2020 - More information

    House committee substitute rewrites the provisions of the 1st edition, with a few exceptions as noted, and now provides the following.

    Part I.

    Titles the act as the “Omnibus COVID-19 Response Act of 2019.”

    Sets forth defined terms. Defines coronavirus or COVID-19 by federal cross-reference. Defines COVID-19 Recovery Legislation as: (1) Coronavirus Aid, Relief, and Economic Security (CARES) Act, PL 116-136; (2) Families First Coronavirus Response Act, PL 116-127; and (3) Coronavirus Preparedness and Response Supplemental Appropriations Act 2020, PL 116-123. Defines the Coronavirus Relief Fund as funds received by the State during the 2019-20 fiscal year from the federal Coronavirus Relief Fund created by the CARES Act.

    Sets out NCGA findings and the purpose of the act.

    Specifies that the appropriations and allocations made in the act are for maximum amounts necessary to implement the act. Requires State agencies to maximize the use of federal funds made available in the act wherever possible within the allowable uses before using other State funds.

    Provides that if an allocation made in the act is disallowed by federal law, then the disallowed allocation is repealed and the amount of the disallowed funds is to be transferred to the new Coronavirus Relief Fund. 

    Requires the Office of State Budget and Management (OSBM) to  work with the recipient State agencies to budget receipts awarded pursuant to COVID-19 Recovery Legislation according to the program needs and within the parameters of the respective granting entities and applicable federal laws and regulations. Prohibits State agencies from using these funds for recurring purposes. Specifies that revenue replacement is not a permissible use of funds received pursuant to the CARES Act. Allow the employment of additional temporary state personnel depending on the nature of the award.

    Require OSBM to report to the specified NCGA commission and division by March 1, 2021, on the use of funds allocated under Section 3.3 of this act. Also requires recipient agencies and departments to report to the specified NCGA commission and division by no more than 90 days from the day the grant period ends on the use of funds. Specifies what information is to be included in the reports.

    Directs the State Auditor to conduct a preliminary financial audit and a final performance audit on the Coronavirus Relief Fund, established by the act, by March 1, 2021.

    Deems departmental receipts appropriated for the 2019-20 and 2020-21 fiscal years up to the amounts needed for the act’s implementation.

    Part II.

    Requires the State Controller to establish a Coronavirus Relief Reserve (Reserve) in the General Fund to maintain federal funds received from the Coronavirus Relief Fund created under The CARES Act. Requires the transfer of funds to the Coronavirus Relief Fund established in this act only as needed to meet the appropriations in this act and only upon request of the Director of the Budget. Specifies that funds reserved in the Reserve do not constitute an "appropriation made by law," as used in Section 7(1) of Article V of the North Carolina Constitution.

    Establishes the Coronavirus Relief Fund (Fund) to provide relief and assistance from the effects of COVID-19, consistent with the provisions of this act and subsequent legislation addressing the effects of COVID-19. Requires OSBM to administer the Fund. Requires funds allocated from the Fund to be used for necessary expenditures incurred due to the public health emergency with respect to the COVID-19 outbreak and limits funding eligibility to expenditures incurred from March 1, 2020, to December 30, 2020.

    Part III

    Directs the State Controller to transfer $1,635,567,029 to the Fund from the Reserve for the 2019-20 fiscal year. Appropriates $1,635,567,029 in nonrecurring funds to OSBM for the 2019-20 fiscal year. Specifies that the funds do not revert and remain available until December 30, 2020.

    Directs OSBM to allocate the funds in specified amount for specified purposes to the following entities, with specified restrictions, conditions, and reporting requirements:

    (1) the Department of Public Instruction (DPI) for school nutrition services;

    (2) DPI to work with the Friday Institute for Education Innovation at NCSU regarding approaches for student internet connectivity and digital development;

    (3) DPI for installing internet access points in school buses;

    (4) DPI for providing community and home mobile internet access points;

    (5) DPI for elementary or secondary schools to purchase computers and electronic devices for student use;

    (6) DPI for elementary or secondary schools to purchase computers and electronic devices for personnel use;

    (7) DPI to purchase pre-packaged digital curricula for grades K-12;

    (8) DPI for statewide cybersecurity infrastructure and district cybersecurity monitoring and support;

    (9) DPI for school health support personnel;

    (10) DPI for local school administrative units, charter schools, and the Innovative School District (ISD) for supplemental summer learning programs;

    (11) DPI to expand the learning management platform to assist and support public school units’ remote instruction;

    (12) DPI to provide nondigital remote instruction to students with limited connectivity;

    (13) DPI to provide Extended School Year Services or future services for qualified exceptional students;

    (14) DPI for the School of the Blind, School for the Deaf, and School for the Deaf for school nutrition, cleaning and sanitizing, digital and nondigital remote learning resources, compensatory services, and Extended School Year Services;

    (15) DPI for the Extended Learning and Integrated Student Supports Competitive Grant Program for the 2019-20 and 2020-21 fiscal years for at-risk students, as specified;

    (16) the Community Colleges System Office for enhanced online learning capacity, faculty and staff support, Small Business Center counselors, information technology, and facility sanitation;

    (17) UNC Board of Governors (BOG) for online coursework expenses, digital learning accelerator, facility sanitation, and student and employee assistance;

    (18) UNC BOG for the State Education Assistance Authority for private postsecondary institutions’ online education and student assistance;

    (19) OSBM to establish the COVID-19 Response Research Fund for allocations to the NC Policy Collaboratory for the Duke University Human Vaccine Institute, the Gillings School of Global Public Health of UNC-Chapel Hill, the Brody School of Medicine of ECU, and the Wake Forest School of Medicine, and for Campbell University School of Osteopathic Medicine for COVID-19 response and developments (similar to previous section 9.1);

    (20) the Department of Health and Human Services (DHHS) to support response capacity of public health efforts, the State Laboratory of Public Health, local health departments, and rural health providers;

    (21) DHHS to support behavioral health and crisis services, with allocations to each LME/MCO and the DHHS, Division of Mental Health, Development Disabilities, and Substance Abuse Services;

    (22) DHHS, Division of Health Benefits (DHB) for additional costs to the Medicaid program including provider support, COVID-19 testing and treatments, and increased enrollment;

    (23) OSBM for DHHS and the Department of Public Safety (DPS), Division of Emergency Management (DEM) to purchase personal protective equipment (PPE) and other supplies and equipment related to emergency protective measures (similar to previous section 4.1);

    (24) DHHS to expand public and private initiatives for COVID-19 testing, contact tracing and trends tracking and analysis (similar to previous section 5.1);

    (25) DHHS to provide funding for protective services and child care, including allocations to the State’s food banks and Reinvestment Partners (similar to previous section 6.1);

    (26) DHHS, Division of Social Services (DSS) for foster care assistance (similar to previous section 6.2);

    (27) DHHS, DSS for facilities licensed to accept State-County Special Assistance for resident services (similar to previous section 6.3);

    (28) DHHS to support rural and underserved communities (similar to previous Section 7.1);

    (29) OSBM to provide a directed grant to the NC Healthcare Foundation for grants awards to rural hospitals, as specified (similar to previous section 7.2);

    (30) DHHS, Division of Central Management and Support, Office of Rural Health for directed grants to member clinics of the NC Association of Free and Charitable Clinics for health care and prescription medication costs (similar to previous section 7.3);

    (31) DHHS to provide a directed grant to NC MedAssist for prescription medication costs for indigent or uninsured individuals (similar to previous section 7.4);

    (32) OSBM to establish the COVID-19 Teaching Hospitals Relief Fund for directed grants to CMS classified teaching hospitals for patient care expenses, as specified (similar to previous section 8.1);

    (33) OSBM to establish the COVID-19 General Hospitals Relief Fund for directed grants to hospitals not classified as teaching or rural hospitals for patient care expenses, as specified (similar to previous section 8.2);

    (34) OSBM for the Department of Transportation (DOT), subject to specified conditions;

    (35) OSBM for counties eligible to receive direct funding from the federal CARES Act;

    (36) OSBM for State agencies for loss of anticipated receipts; and

    (37) OSBM for the continuity of operations across state government, with allocations permitted for the Department of Agriculture and Consumer Services (DACS) for animal depopulation and disposal activities, for the establishment of the NC Pandemic Recovery Office, and for the Office of the State Auditor.

    Requires OSBM to provide a report to the specified NCGA committee by August 15, 2020, detailing the allocations. Details required content of the report.

    Part III-A.

    Maintains provisions from former Sections 3.2 through 3.5. Makes technical changes. Removes the appropriation that was in former Section 3.1, because it now appears in Section 3.2(22).

    Part III-B.

    Directs OSBM to establish a temporary NC Pandemic Recovery Office (Office), charged with oversight and coordination of funds made available under COVID-19 Recovery Legislation. Additionally requires the Office to provide technical assistance and ensure coordination of federal funds received by State agencies and local governments, and ensure property reporting and accounting. Terminates the Office and the authorities granted in the act 12 months after the date the act becomes law.

    Part III-C.

    Requires the Department of Mental Health, Developmental Disabilities, and Substance Abuse Services (DMH/DD/SAS) to use the $400,000 allocated to it to purchase units of opioid antagonist and distribute these opioid antagonist units for free to charge to opioid treatment programs (as defined) operating in this State.

    Requires each opioid treatment program operating in this State to do all of the following within two weeks after receipt of the opioid antagonist: (1) provide a prescription for opioid antagonist for each program participant who is a Medicaid recipient, or has prescription drug coverage for opioid antagonist; (2) to the extent that units are available from those distributed by DMH/DD/SAS, provide at least one unit of opioid antagonist to each program participant who meets at least one of the following: (a) is uninsured, (b) lacks prescription drug coverage for opioid antagonist, or (c) is receiving opioid use disorder services funded by a grant, a local management entity/managed care organization, or another source of funding not associated with the federal Centers for Medicare and Medicaid Services or a commercial payor; and (3) to the extent that units are available from those distributed by DMH/DD/SAS, or otherwise available to program participants through the State's Medicaid program or other prescription drug coverage for opioid antagonist, provide each program participant who has take-home medication privileges with the opportunity to obtain prescription refills for opioid antagonist.

     Specifies that the NCGA is not obligated to appropriate funds for the purpose of this section, or as an entitlement to any opioid treatment program or any opioid treatment program participant to receive opioid antagonist under this section.

    Part IV.

    Provides that except for funds subject to the small business loan fund under the act or to Section 2.1 of the act, funds received from federal grants authorized under the COVID-19 Recovery Legislation are appropriated in the amounts specified in the award notification from the federal government or entity administering the funds. Allows State agencies, with approval from the Director of the Budget, to spend funds received from federal receipts and grants resulting from enactment of the COVID-19 Recovery Legislation that are not subject to Section 2.1 of the act. Specifies that Section 2.2(c) of SL 2019-192 (requiring that each program category under the Community Development Block Grant be increased by the same percentage as the increase in federal funds) for block grants appropriated by Congress in addition to the funds specified in the act) does not apply to grant funds received under the COVID-19 Recovery Legislation.

    Sets out a schedule allocating specific funding amounts to 38 different specified programs. Provides that the programs and amounts ares estimates of the State's allocations from the COVID-19 Recovery Legislation and is illustrative of federal grants that have or will be received by the State in addition to the approximate $3.5 billion from the Coronavirus Relief Relief Fund under the CARES Act. Specifies that no funds authorized under the CARES Act for election security are appropriated in the act and that the NCGA intends to appropriate funds for election security in a subsequent act. 

    States the legislative intent to address the State's additional elections needs resulting from the COVID-19 pandemic in separate legislation. Prohibits funds appropriated in the act or in the State Board of Elections 2019-20 fiscal year budget to be expended to meet the matching requirements for additional federal funds awarded to the State after enactment of SL 2019-239 (Combat Absentee Ballot Fraud).

    Part V.

    Includes a severability clause (identical to previous part XII).

    Part VI.

    Includes a standard effective date provision (identical to previous part XIII).

    Amends the act's titles.


  • Summary date: Apr 28 2020 - More information

    Part I.

    Sets out and defines six terms that are used in the act. Defines COVID-19 emergency as the period beginning March 10, 2020, and ending on the date the Governor signs an executive order rescinding Executive Order No. 116 (Declaration of a State of Emergency to Coordinate Response and Protective Actions to Prevent the Spread of COVID-19). Defines Coronavirus Relief Fund as funds received by the State during the 2019-20 fiscal year from the Coronavirus Relief Fund created by the Coronavirus Aid, Relief, and Economic Security Act of 2020 (PL 116-136).

    Part II.

    Appropriates $25 million in nonrecurring funds from the Coronavirus Relief Fund (hereinafter Relief Fund) to the Department of Health and Human Services (DHHS) to support public health efforts, the State Laboratory of Public Health, local health departments, and rural health providers in building capacity to respond to the COVID-19 pandemic.

    Appropriates $25 million in nonrecurring funds from the Relief Fund to DHHS to support behavioral health and crisis services to respond to the COVID-19 pandemic. Requires that the funds be used for at least the following: (1) to divert individuals experiencing behavioral health emergencies from emergency departments and (2) to allocate $12.6 million in nonrecurring funds to be distributed as a one-time payment to each LME/MCO for temporary additional funding assistance for Intermediate Care Facilities for Individuals with Intellectual Disabilities services on a per diem basis.

    Part III.

    Appropriates $40 million in nonrecurring funds from the Relief Fund to DHHS, Division of Health Benefits (DHB), for coverage of additional costs related to the Medicaid program, including: (1) funding for the support of COVID-19 related priorities in the Medicaid program as they evolve, (2) additional funding for COVID-19 testing and treatment of patients who test positive for COVID-19, and (3) costs associated with increased enrollment due to the COVID-19 pandemic.

    Requires DHHS to increase the fee-for-service Medicaid rates paid directly by the DHB for all remaining provider types by 5 percent. The rate increases are effective March 1, 2020, through the duration of the declared nationwide public health emergency as a result of the 2019 novel coronavirus.

    Authorizes DHB to provide Medicaid coverage described in the specified federal law that covers COVID-19 testing for certain uninsured individuals during the period in which there is a declared nationwide public health emergency as a result of the 2019 novel coronavirus. Authorizes providing this assistance retroactively to the earliest date allowable.

    Authorizes DHB to provide temporary, targeted Medicaid coverage to individuals with incomes up to 200 percent of the federal poverty level, as requested in the 1115 waiver application submitted on March 27, 2020. If approval is granted for different coverage or a different population than requested in the application, allows DHB to implement the approved temporary coverage, if (1) the coverage is only provided for a limited time period related to the declared nationwide public health emergency as a result of the 2019 novel coronavirus; (2) the coverage is not provided for services other than those for the prevention, testing, or treatment of COVID-19; and (3) the income level to qualify for the coverage does not exceed 200 percent of the federal poverty level. Authorizes DHB to provide this coverage retroactively to the earliest date allowable.

    Specifies that the following do not apply to the North Carolina Medicaid program and NC Health Choice program from March 1, 2020, through the duration of the declared nationwide public health emergency as a result of the 2019 novel coronavirus: (1) GS 108C-2.1 (Medicaid Provider application and recredentialing fee); (2) GS 108C-4(a) (requirement to conduct criminal history records checks of provider applicants and enrolled providers); (3) GS 108C-9(a) with respect to any required trainings prior to enrollment (requires applicants submitting an initial application for enrollment in North Carolina Medicaid or North Carolina Health Choice to submit an attestation and to complete trainings prior to being enrolled); and (4) GS 108C-9(c) (requires that prior to being initially enrolled in the North Carolina Medicaid or Health Choice programs, an applicant's representative attend trainings as designated by the Department in rules, including the five specified topics).

    Part IV.

    Appropriates $50 million in nonrecurring funds from the Relief Fund to the Office of State Budget and Management (OSBM) to be allocated to DHHS and the Division of Emergency Management (DEM) to: (1) purchase personal protective equipment, as defined, that meets CDC guidelines for infection control; (2) purchase other supplies and equipment related to emergency protective measures to address immediate threats to life, public health, and safety related to COVID-19, with examples provided; and (3) meet State match requirements for FEMA public assistance funds for the COVID-19 pandemic. Allows any supplies and equipment purchased with the funds to be available to both public and private health care providers and other entities DHHS or DEM deem essential to the State’s response. Requires DHHS and DEM to ensure that these funds are expended in a way that does not adversely affect eligibility for federal funds. Also requires DHHS and DEM to avoid using State funds to cover costs that will be, or likely will be, covered by federal funds.

    Part V.

    Appropriates $25 million in nonrecurring funds from the Relief Fund to DHHS to expand public and private initiatives for COVID-19 testing, contact tracing, and trends tracking and analysis through, but not limited to, the four specified methods.

    Part VI.

    Appropriates $25 million in nonrecurring funds from the Relief Fund to DHHS for (1) adult and child protective services response, (2) support for homeless and domestic violence shelters and house security, (3) child care response, and (4) technology modifications to support COVID-19 emergency relief beneficiaries. Requires that $6 million of these funds be allocated equally among each of the state’s six food banks. Allocates $2.5 million of these funds to Reinvestment Partners, for its Produce Prescription Program, which provides a $40 a month per household benefit for each eligible Food and Nutrition Services recipient enrolled by the recipient’s health care provider; this provision expires three months from the date this section becomes effective.

    Appropriates $2.25 million in nonrecurring funds from the Relief Fund to DHHS, Division of Social Services (DSS), to assist in serving children in foster care; requires the funds to be used for $100 monthly supplemental payments for each child receiving foster care assistance payments for April through June 2020.

    Appropriates $25 million in nonrecurring funds from the Relief Fund to DSS for facilities licensed to accept State–County Special Assistance (defined as any residential care facility that is (1) licensed by DHHS and (2) authorized to accept State-County Special Assistance payments from its residents). Requires each eligible facility to receive $1,325 for each resident of the facility who is a recipient of State-County Special Assistance between March 10 through June 30, 2020.

    Part VII. 

    Appropriates $25 million in nonrecurring funds from the Relief Fund to DHHS to support rural and underserved communities especially hard hit by the COVID-19 pandemic, and provides examples of such support. Allows the funds to be used to fund items not addressed by federal relief funds, or as needed to address critical health care needs until federal funds are received for such purposes.

    Appropriates $75 million in nonrecurring funds from the Relief Fund to the North Carolina Healthcare Foundation (NCHF) as a directed grant. Requires that the funds be used to provide grants to rural hospitals; grants are to be awarded within 30 days of receiving an application on the basis of need according to tier designation, county health ranking, and hospital-specific financial data. Requires NCHF to provide technical assistance to grant recipients for five years. Requires grant recipients to use the funds for offsetting nine categories of costs related to patient care provided in the state as a result of the COVID-19 pandemic; cost categories include supplies and equipment purchased in accordance with Centers for Disease Control guidelines, increasing the number of patient care beds to provide surge capacity, and salary support for furloughed employees. Requires grant recipients to report to NCHF by November 1, 2020, on the use of the funds. Requires NCHF to submit a report by December 1, 2020, to the specified NCGA committee and division on the use of the appropriated funds and recommendations on how recipient facilities can prepare for post COVID-19 sustainability.

    Appropriates $1.4 million in nonrecurring funds from the Relief Fund to DHHS, Division of Central Management and Support, Office of Rural Health, to provide directed grants in equal amounts to the 67 member clinics of the North Carolina Association of Free and Charitable Clinics, to offset costs for providing health care and prescription medications during the COVID-19 emergency.

    Appropriates $1.5 million in nonrecurring funds from the Relief Fund to NC MedAssist, as a directed grant to offset increased costs for providing prescription assistance services during the COVID-19 pandemic to indigent or uninsured individuals.

    Part VIII.

    Appropriates $25 million in nonrecurring funds from the Relief Fund to OSBM to establish the COVID-19 Teaching Hospitals Relief Fund. Requires money in the fund to be allocated as directed grants to teaching hospitals in the state to offset expenses incurred for providing patient care as a result of the COVID-19 pandemic. Grants are to be awarded based on the amount of charitable care provided in the state, and the amount of lost revenue sustained within the state as a result of the COVID-19 pandemic. Requires grant recipients to use the funds for offsetting nine categories of costs related to patient care provided in the state as a result of the COVID-19 pandemic; cost categories include supplies and equipment purchased in accordance with Centers for Disease Control guidelines, increasing the number of patient care beds to provide surge capacity, and salary support for furloughed employees. Requires grant recipients to report to OSBM by November 1, 2020, on the use of the funds. Requires OSBM to submit a report by December 1, 2020, to the specified NCGA committee on the use of the appropriated funds.

    Appropriates $25 million in nonrecurring funds from the Relief Fund to OSBM to establish the COVID-19 General Hospital Relief Fund. Requires money in the fund to be allocated as directed grants to hospitals in the state that are not rural or teaching hospitals to offset expenses incurred for providing patient care as a result of the COVID-19 pandemic. Grants are to be awarded based on the amount of charitable care provided in the state, and the amount of lost revenue sustained within the state as a result of the COVID-19 pandemic. Requires grant recipients to use the funds for offsetting nine categories of costs related to patient care provided in the state as a result of the COVID-19 pandemic; cost categories include supplies and equipment purchased in accordance with Centers for Disease Control guidelines, increasing the number of patient care beds to provide surge capacity, and salary support for furloughed employees. Requires grant recipients to report to OSBM by November 1, 2020, on the use of the funds. Requires OSBM to submit a report by December 1, 2020, to the specified NCGA committee on the use of the appropriated funds.

    Part IX.

    Appropriates $110 million in nonrecurring funds from the Relief Fund to OSBM to establish the COVID-19 Response Research Fund. Requires the fund to be allocated as follows. Requires $100 million to be allocated to the North Carolina Policy Collaboratory (Collaboratory) at UNC-Chapel Hill to coordinate efforts among entities being provided funds. Allows the Collaboratory to put together an advisory panel of representatives from entities receiving funds as necessary to discuss, review, and analyze progress toward meeting goals for the use of the funds. Funds are to be used for (1) the rapid development of a countermeasure of neutralizing antibodies for COVID-19, (2) bringing a safe and effective COVID-19 vaccine to the public as soon as possible, (3) community testing initiatives, and (4) other research related to COVID-19. Allocates the $100 million to the following entities in the amount of $25 million each: (1) Duke University Human Vaccine Institute, (2) Gillings School of Global Public Health at UNC-Chapel Hill, (3) Brody School of Medicine at East Carolina University, and (4) Wake Forest School of Medicine. Allocates $10 million to the Campbell University School of Osteopathic Medicine for a community and rural-focused primary care workforce response to COVID-19. Requires the above entities to report to the specified NCGA committee by September 1, 2020.

    Part X.

    Specifies that funds appropriated in this act that are unexpended or unencumbered on June 30, 2020, do not revert to the General Fund.

    Part XI.

    Appropriates departmental receipts for the 2019-20 and 2020-21 fiscal years up to the amounts needed to implement the provisions of the act for the corresponding fiscal year.

    Part XII.

    Includes a severability clause.


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