House committee substitute to the 1st edition adds the following content.

Part I.

Section 1.1

Requires the State Controller to transfer $70,812,336 in nonrecurring funds for 2019-20 from the Savings Reserve to the Hurricane Florence Disaster Recovery Fund to be used to provide a State match for Hurricane Florence federal disaster assistance programs. 

Section 1.2

Appropriates $186,353,258 in nonrecurring funds from the Savings Reserve for 2019-20, to be allocated as follows: (1) $38,173,258 to the State Emergency Response and Disaster Relief Fund to be used for the four specified purposes; (2) $40 million to the North Carolina Office of Recovery and Resiliency to be used for the three specified purposes; (3) $1,350,000 to the Department of Environmental Quality to be used for the two specified purposes; (4) $30,000 to the Wildlife Resources Commission to be used for the specified purpose; (5) $36 million to the Department of Transportation to be used for the four specified purposes; (6) $42.1 million to the Division of Emergency Management to be used for the three specified purposes; (7) $5.2 million to Elizabeth City State University for the specified purpose; (8) $1.7 million to the Department of Public Instruction as a directed grant to Hyde County for the specified purpose; (9) $20 million to the Office of State Budget and Management for the Golden L.E.A.F. Inc., for the specified purpose, and (10) $1.8 million as a directed grant to Hyde County for the specified purposes.

Section 1.3

Appropriates $357,813 in recurring funds for 2019-20 and $753,125 for 2020-21 from the General Fund to the Department of Public Safety with $250,000 in recurring funds in each year of the biennium allocated for a grant to the United Way of North Carolina to support the NC 2-1-1 program; and $107,813 in recurring funds in 2019-20 and $503,125 in recurring funds for 2020-21 allocated to the Division of Emergency Management for positions to support the management of federal grants and other Division operations with the positions effective January 1, 2020. Repeals these provisions if HB 966 (Appropriations Act of 2019) becomes law.

Part II.

Specifies that Section 1.1 and 1.2 apply to the following counties: (1) for disaster relief and recovery related to Hurricane Matthew, counties identified in Part II of SL 2016-124; (2) for disaster relief and recovery related to Hurricane Florence or Michael, those counties identified in SL 2018-136 or SL 2019-3; (3) those declared a major disaster by the President under the Stafford act as a result of Hurricane Dorian. 

Part III. 

Allows a State agency that received funding under this act or any of the following to reallocate unexpended and unobligated program funds to the same program or purposes for damage caused by Hurricanes Matthew, Florence, Michael, Dorian or future storms: SL 2016-124 (An Act to Enact the Disaster Recovery Act of 2016), SL 2017-119 (An Act to Enact the Disaster Recovery Act of 2017), Section 5.6 of SL 2018-5 (Disaster Recovery – 2018), SL 2018-134 (The Hurricane Florence Emergency Response Act), SL 2018-136 (2018 Hurricane Florence Disaster Recovery Act), SL 2018-138 (An Act to Provide Additional Disaster Relief in Response to Hurricane Florence), SL 2019-3 (An Act to Extend the Deadline to Apply for the Hurricane Florence Agricultural Disaster Program of 2018 for Certain Counties that Received a Presidential or Secretarial Disaster Declaration as a Result of Hurricane Michael After the Original Deadline), and SL 2019-224 (An Act to Enact the 2019 Disaster Recovery Act Consistent with the Provisions of House Bill 966 of the 2019 Regular Session and to Appropriate Funds).

Requires any State agency that reallocates funds to report, at least 30 days before the reallocation, to the chairs of the specified NCGA committees and division. Requires the report to identify six specified items, including the original funding authorization, the original program or purpose for the use of the funds, and the amount of funds to be reallocated. 

Amends GS 166A-19.15(f)(1) to allow political subdivisions to award contracts for the repair, rehabilitation, or construction of private residential structures funded by State or federal funds following a disaster declared by the Governor covering the political subdivision. Authorizes a political subdivision to contract directly with pre-qualified contractors under GS 166A-19.12(23) on the basis of price, qualification, capacity, and any other objective criteria.

Amends GS 143-129 to exempt contracts for disaster recovery private residential construction or repair awarded under GS 166A-19.12(23) and GS 166A-19.15(f)(1) from Article 8, Public Contracts, of GS Chapter 143.

Amends Section 5.11(a) of SL 2016-124 to now require that all Community Development Block Grant Disaster Recovery awards received by the State in response to the declarations and executive orders described in the act as well as subsequent federally declared disasters, to be administered by the North Carolina Office of Recovery and Resiliency (was, all Community Development Block Grant Disaster Recovery Program funds received by the Department of Commerce in response to the declaration and executive orders described in the act were to be transferred to the Emergency Management Division). 

Allows funds allocated to the Community Colleges System Office in Section 4.12 of SL 2018-136 to be used to offset a receipt shortfall due to enrollment declines caused by Hurricane Florence.

Amends GS 166A-19.11 by giving the Secretary of Public Safety the following additional duties: (1) notifying the Director of the Budget, the Office of the Governor, the chairs of the specified NCGA committees, the Fiscal Research Division, and any other State entities deemed necessary of the potential for using Community Development Block Grant-Disaster Recovery funds to cover the nonfederal share of matching requirements for eligible programs on June 1 of each year and within five days of a presidential disaster declaration for the State and (2) reporting annually by December 1 to the chairs of the specified NCGA committees on the amount of State funds used to pay contractors for performing CDBG-DR activities that could have been paid for using federal CDBG-DR funds during the calendar year. 

Enacts new GS 166A-19.13 requiring the Department of Public Safety (DPS) to establish mechanisms to regularly solicit input from entities receiving federal or State disaster recovery funds on how to improve the administration of the funds and associated programs. Requires DPS, by December 1, 2020, to modify its policies and procedures for disaster recovery to: (1) where permitted by State law and administrative rule, require the Office of Recovery and Resiliency (Office) to use cost as a factor when awarding contracts for professional services that may be eligible for reimbursement from federal funds (exempts contracts subject to Article 3D of Chapter 143); (2) establish minimum competencies for staff who administer the Community Development Block Grant-Disaster Recovery (CDBG-DR) program; and (3) describe how the input obtained from the mechanisms will be incorporated into revisions of its policies and procedures. Requires the Office, by January 1, 2020, to develop performance metrics for all entities receiving federal or State disaster recovery funds, including average time-cycle by process step, total number of projects by process step and managed overall, outreach and intake metrics, amount of disaster recovery funds spent on administrative activities, and amount of disaster recovery funds disbursed on behalf of recipients. Requires the performance metrics to be standardized across funding streams to allow for comparisons and identification of areas needing improvement.

Amends Section 5.8 of SL 2018-136, as amended, to require the Office of Recovery and Resiliency (Office) to also provide separate quarterly reports on the use of disaster recovery and assistance funds expended from funds appropriated for disaster relief for Hurricane Dorian, with specified content, in addition to the separate quarterly reports the Office must provide for funds expended from the Hurricane Florence Recovery Fund and the State Emergency Response and Disaster Relief Fund, beginning January 1, 2019. Further amends Section 5.8 to require the Office to provide separate quarterly reports beginning January 1, 2020, to the Director of the Budget and specified NCGA committees and division on the use of CDBG-DR funds expended starting October 1, 2019, and thereafter. Details required content of the reports, including average time-cycle by process step and average cost per project. Additionally, requires the Office to provide separate quarterly reports beginning January 1, 2020, to the Director of the Budget, and specified NCGA committees and division, on the use of disaster recovery and assistance funds, other than CDBG-DR funds, expended starting October 1, 2019, and thereafter from the Hurricane Florence Recovery Fund and from the State Emergency Response and Disaster Relief Fund for Hurricane Matthew. Details required content of the reports, including average time-cycle and average cost per project. Makes conforming changes.

Directs the Office to make recommendations regarding the staffing levels necessary to (1) administer the CDBG-DR program when the Office is administering CDBG-DR funds; (2) administer the CDBG-DR program when the Office is not administering CDBG-DR funds; (3) maintain a base-level staff to provide resiliency planning and coordination, continuous disaster recovery functions, and adequate preparedness for future disasters; and (4) expand from a base-level staff to provide necessary functions immediately following a natural disaster. Details required content of each recommendation, including funding source of the recommended positions. Requires the Office to report to the specified NCGA committee and division by March 1, 2020.

Directs the Joint Legislative Program Evaluation Oversight Committee to include in the biennial work plan of the Program Evaluation Division (PED) an evaluation of DPS coordination with non-profit organizations for disaster recovery planning. Directs PED to submit is evaluation to specified NCGA committees. 

Amends Section 1.1 of SL 2019-224 to decrease the transfer required from the Hurricane Florence Disaster Recovery Reserve to the Hurricane Florence Disaster Recovery Fund for the 2019-20 fiscal year from $94,103,000 to $89,103,000. Effective July 1, 2019.

Amends Section 2.1(7)d. of SL 2019-224, which allocated $2 million to develop a pilot program to help pay for the cost of up to two years' flood insurance for eligible applicants and eligible properties. Modifies who is an eligible applicant under the pilot program to no longer require that the applicant has not received flood insurance for the subject property from any federal program. Modifies eligible properties under the program to no longer require that the property has experienced a repetitive loss as defined by FEMA. Effective July 1, 2019.

Amends Section 2.1(10) of SL 2019-224, which allocated $1 million to the Wildlife Resources Commission (WRC) to inspect, investigate, and remove derelict and abandoned water vessels. Expands the purpose of the allocation to also include disposal of such vessels. Additionally authorizes WRC to coordinate with the Department of Environmental Quality (DEQ), non-governmental organizations, and private entities to perform WRC's work under the subdivision. Amends the meaning of abandoned and derelict vessel under the subdivision to mean a vessel as defined in specified state law located in coastal public trust waters that has been damaged or destroyed by weather-related events and that the WRC determines has been relinquished, left, or given up by the lawful owner without the intention to later resume any right or interest in the vessel (previously, defined the phrase to mean a water-going craft located in a canal or the Intercoastal Waterway that has been damaged or destroyed by weather-related events and that is impeding water traffic; excluded vessels moved to a dock or otherwise not located in an area of normal water traffic). No longer includes language explicitly authorizing the WRC to remove and dispose of vessels identified by the Marine Patrol of the Division of Marine Fisheries. Adds procedures for the WRC to follow before determining the vessel to have been given up by the lawful owner, including requiring 30 days' written notice to the owner and posting notice on the vessel. Allows WRC to proceed with removal and disposal of the vessel if no response is received within 30 days of the notice. Further authorizes the WRC to remove an abandoned and derelict vessel located on private property upon written request of the property owner following specified procedures. Requires the WRC to prioritize removal of vehicles blocking or otherwise impeding vessel traffic in navigable waters.

Part IV.

Requires recipients of State funds to use best efforts to obtain alternative funds to cover losses and needs. Declares State funds paid to be in excess over funds received by a recipient from an insurance claim settlement. Requires higher education institutions and non-State entities that receive State funds to seek private donations to help cover the losses or needs for which the funds are provided. 

Sets forth limitations on expenditures relating to federal fund eligibility. Prohibits the Governor from using the described funds of the act to make reallocations under GS 166A-19.40(c) (authority of the Governor to reallocate department appropriations when certain conditions are met).

Encourages agencies to acquire goods and services from historically underutilized business vendors, whether directly or indirectly.

States the legislative intent to review funds federally appropriated for disaster relief and to consider necessary actions to meet remaining unmet needs, as well as review the adequacy of the measures funded by the act.

Prohibits State funds appropriated in the act from being used for the construction of any new residence within the 100-year flood plain, as defined, unless the construction is in an area regulated by a unit of local government pursuant to a floodplain management ordinance and the construction complies with the ordinance.

Requires homeowners in the 100-year floodplain who receive homeowner's housing assistance pursuant to the act to have in effect federal flood insurance, if available, as a precondition to receipt of State homeowner's housing assistance for losses resulting from future flooding.

Limits the use of funds loaned to small and mid-sized businesses to eligible purposes under the Small Business Administration disaster loan assistance program, designated as described. Limits payments for economic losses to documented business expenses necessary for the continued operation of the business.

States that appropriations and allocations made are for maximum amounts necessary and requires savings to be effected where total amounts appropriated or allocated are not required for implementation.

Deems funds received on or after September 1, 2019, for federal disaster assistance programs for State disasters as a result of Hurricane Dorian appropriated in the amounts provided in the award notifications. Requires the Office of State Budget and Management and affected State agencies to report all award notifications to the specified NCGA committees and division.

Details parameters for nonrecurring funds appropriated as directed grants, including that directed grants of more than $100,000 must be made in quarterly or monthly payments at the discretion of the Director of the Budget; directed grants do not revert until June 30, 2021; and directed grants are limited to nonsectarian, nonreligious purposes only. Sunsets these provisions on June 30, 2021.