Bill Summary for H 1023 (2019-2020)

Summary date: 

Jun 23 2020

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 1023 (Public) Filed Tuesday, October 22, 2019
AN ACT TO PROVIDE ADDITIONAL AND REVISED USES FOR FEDERAL CORONAVIRUS RELIEF FUNDS; TO PROVIDE ADDITIONAL FUNDING FOR SCHOOL NUTRITIONAL NEEDS; TO EXTEND THE ABILITY OF CERTAIN GOVERNMENTAL RETIREES TO ENGAGE IN PART-TIME EMPLOYMENT WITHOUT AFFECTING RETIREMENT; TO PROVIDE FUNDING FOR THE IMPLEMENTATION OF THE SCHOOL BUSINESS SYSTEM MODERNIZATION PLAN; TO WAIVE MATCH REQUIREMENTS FOR A CERTAIN COMPETITIVE GRANT PROCESS FOR NONPROFITS; AND TO MAKE OTHER CHANGES.
Intro. by Rules, Calendar, and Operations of the House.

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Bill summary

Senate committee substitute to the 3rd edition deletes all provisions of the 3rd edition and replaces it with the following.

Part I

Section 1.1.(a) revises Section 2.3 of SL 2020-4 (2020 COVID-19 Recovery Act) by deleting the statement of legislative intent to appropriate $150,000,000 if local governments experience a revenue shortfall and the federal CARES Act is amended to allow the use of federal funds for that purpose.

Section 1.1.(b) revises Section 3.1 of SL 2020-4 by transferring $300,000,000 (was, $150,000,000) from the Local Government Coronavirus Relief Reserve (Local Reserve) to the Coronavirus Relief Fund (Fund).

Section 1.1.(c) revises Section 3.2 of SL 2020-4 by increasing the appropriations from the Fund to the Office of State Budget and Management (OSBM) to $2,095,988,029 (was, $1,425,988,029).

Section 1.1.(d) makes various revisions to Section 3.3. of SL 2020-4 regarding OSBM's allocation of appropriated funds, effective June 15, 2020, as follows.

Amends subdivision (2) by allocating $300,000,000 (was, $150,000,000) to counties ineligible to receive direct funding from the CARES Act. Directs counties to allocate 25% of these funds (previously permitted counties to allocate amount in their discretion) for use by municipalities and provides that municipalities must return allocated funds to the county absent developing a plan to spend the funds by September 1, 2020.

Amends subdivision (4) by extending the deadline regarding the conditional revision of specified US Department of Treasury guidelines to September 1, 2020 (was, June 15, 2020) in order to allocate $300,000,000 to the General Maintenance Reserve in the Highway Fund.

Amends subdivision (6) to provide that the funds allocated to Department of Public Instruction (DPI) must be used for emergency school nutrition services including innovative school meals and that school units participating in the Summer Food Service Program are eligible. Clarifies that meals are to be provided to students (previously recipients were unspecified). Changes relevant nutrition program participation period for units from March 16, 2020, to December 30, 2020 (was to end of the 2019-2020 school year).

Amends subdivision (32) by allocating $7,425,000 (was, $5,000,000) to OSBM to be allocated to the North Carolina Association of Free and Charitable Clinics and clarifying that funds can be used for other costs allowed pursuant to federal guidance in addition to emergency costs.

Amends subdivision (34) by allocating $7,425,000 (was, $5,000,000) to OSBM to be allocated to the North Carolina Community Health Center Association and clarifying that funds can be used for emergency and other costs allowed pursuant to federal guidance. Makes technical changes regarding name of association and acronym.

Amends subdivision (42) by allocating $3,550,000 (was, $2,250,000) to the Department of Health and Human Services (DHHS), Division of Social Services for $100 supplemental payments for each child receiving foster care assistance payments beginning in April 2020 and continuing until funds are exhausted (previously ended June 2020).

Amends subdivision (44) by allocating $14,500,000 (was, $4,500,000) to the Department of Commerce for marketing COVID-19 concepts, strategies, and materials, as specified. Makes conforming changes.

Enacts new subdivision (47) allocating $10,000,000 to the Department of Agriculture and Consumer Services to be used in accordance with Section 4.2A of the act (as enacted, regarding grants for small meat processing facilities).

Enacts new subdivision (48) allocating $2,000,000 to the General Assembly to cover allowable costs incurred as a result of the COVID019 pandemic.

Enacts new subdivision (49) allocating $750,000 to the Department of Information Technology, Government Data Analytics Center (GDAC) to develop a COVID-19 economic analytics and reporting tool, as specified.

Enacts new subdivision (50) allocating $4,800,000 to UNC Chapel Hill to be used for the UNC School of Medicine Asheville Campus joint program related to COVID-19 response activities.

Enacts new subdivision (51) allocating $15,000,000 to the Department of Commerce for job retention grants awarded by the Economic Investment Committee pursuant to Section 4.2B of the act (as enacted, regarding job retention grants).

Enacts new subdivision (52) allocating $120,000,000 to the Department of Public Safety, Division of Emergency Management to be used as the State match for any Federal Emergency Management Agency public assistance funds provided for the COVID-19 pandemic.

Enacts new subdivision (53) allocating $2,600,000 to OSBM to provide additional funding for NC HealthConnex for COVID-19 related operations and improvements, as specified.

Enacts new subdivision (54) allocating $3,500,000 to the Administrative Office of the Courts (AOC) to be used as a grant for Caitlyn’s Courage, Inc. in accordance with Section 4.2C of the act (as enacted).

Enacts new subdivision (55) allocating $2,000,000 to the Wildlife Resources Commission to be allocated to the Outdoor Heritage Special Fund for the Outdoor Heritage Advisory Council’s NC Schools Go Outside grant program.

Enacts new subdivision (56) allocating $400,000 to the Department of Natural and Cultural Resources for the State Library’s NC Kids Digital Library for enhancement of digital offerings.

Enacts new subdivision (57) allocating $400,000 to the Department of Natural and Cultural Resources to be allocated to the North Carolina Museum of History for virtual and online programs and access.

Enacts new subdivision (58) allocating $1,000,000 to the Department of Natural and Cultural Resources to be allocated to the North Carolina Zoological Park for health and safety enhancements related to COVID-19.

Enacts new subdivision (59) allocating $725,000 to the Department of Commerce to be allocated to the High Point International Home Furnishings Market Authority Corporation to enable the Market to open during its international shows.

Enacts new subdivision (60) allocating $1,500,000 to the Department of Commerce to contract with a nonprofit corporation for grants targeted to areas most dependent on travel and tourism, as specified.

Enacts new subdivision (61) allocating $500,000 to the Department of Commerce to be allocated to the North Carolina Biotechnology Center for grants and job placement services related to workers displaced by COVID-19, as specified.

Enacts new subdivision (62) allocating $2,500,000 to the Department of Commerce to be used in accordance with Section 4.2D of the act regarding the Plasma Games Pilot Program (as enacted).

Enacts new subdivision (63) allocating $7,000,000 to the Department of Public Instruction to provide personal protective equipment for public schools to facilitate in-person instruction for the 2020-21 school year, as specified.

Enacts new subdivision (64) allocating $5,000,000 to the Department of Public Instruction to hold in reserve to award as grants in the Department’s discretion to public school units that apply for funds to provide access to services for exceptional children.

Enacts new subdivision (65) allocating $3,000,000 to UNC Pembroke for an analytics project focusing on the COVID-19 pandemic, as specified.

Enacts new subdivision (66) allocating $2,000,000 to UNC Pembroke for the Department of Nursing for specialized training related to COVID-19.

Enacts new subdivision (67) allocating $5,000,000 to DHHS, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services to be allocated to group homes to support implementation of CDC guidance related to these facilities. Defines the term group home for purposes of the subdivision.

Enacts new subdivision (68) allocating $7,000,000 to OSBM to be allocated in equal amounts to Good Hope Hospital, Inc., Lake Norman Regional Medical Center, Cape Fear Valley Health Hoke Hospital, Catawba Valley Medical Center, Davis Regional Medical Center, Carolinas Healthcare System Blue Ridge, and AdventHealth Hendersonville to be used to offset expenses related to patient care from the COVID-19 pandemic. Specifies expenses which may be offset and requires grant recipients to provide a report of expenditures and other matter to relevant legislative committees by December 1, 2020.

Enacts new subdivision (69) allocating $2,500,000 to OSBM to be allocated to any county designated as a tier two area with a population of less than 150,000 that has a hospital within its borders meeting certain specified criteria. Directs counties to distribute allocated funds to eligible hospitals to offset expenses related to patient care from the COVID-19 pandemic. Specifies expenses which may be offset and requires grant recipients to provide a report of expenditures and other matter to relevant legislative committees by December 1, 2020. Creates civil liability for counties, county officials, and county employees who misuse funds.

Enacts new subdivision (70) allocating $4,300,000 to OSBM to be allocated to the Children’s Advocacy Centers of North Carolina, Inc., to be distributed to child advocacy centers to cover the cost of increased child caseloads and virtual counseling due to the COVID-19 pandemic.

Enacts new subdivision (71) allocating $375,000 to OSBM to be allocated to the Crossnore School and Children’s Home for COVID-19 related preventative protective measures.

Section 1.1(e) adds the following new Sections to SL 2020-4.

Section 4.2A

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

Directs the Department of Agriculture and Consumer Services (DACS) to determine if allocations made in subdivision 3.3(47) of SL 2020-4, as amended, are sufficient to improve the COVID-19 related slowdowns and mitigate capacity reductions, and if insufficient, to notify the State Controller who must deposit funds into the Coronavirus Relief Reserve. If DACS determines sufficient funds are allocated, requires DACS to use the funds for three types of grants: capacity enhancement grants, workforce development grants, and planning grants. 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.

Requires DACS to develop policies and procedures for the disbursement of grants that includes specified restrictions and requirements, including that grant eligibility be restricted to meat processing facilities that either (1) 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, or (2) are a catfish aquaculture operation that raises and processes catfish. Also provides for use restrictions, prioritization of projects with job creation, and matching requirements of $1 for every $2 in grant funds.

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. 

Requires DACS to transfer disallowed allocations under federal law as specified for ultimate transfer back to the Coronavirus Relief Reserve.

Section 4.2B

States the purpose of the Section regarding the use of funds from the Coronavirus Relief Fund to help NC businesses and nonprofits after the COVID-19 pandemic. Directs the Department of Commerce to use funds allocated in subdivision 3.3(51) of SL 2020-4, as amended, to provide the following described grants.

Establishes the COVID-19 Job Retention Program (program), administered by the Economic Investment Committee (Committee), to provide one-time grants of up to $250,000 to a business or nonprofit that retained jobs during and after the COVID-19 pandemic and meets program requirements. Limits program eligibility to businesses and nonprofits that: (1) employ at least 90% of the number of full-time or equivalent employees during the COVID-19 period in NC as it employed for the pay period ending on or about February 28, 2020; (2) for businesses, have sales for the COVID-19 period that are at least 10% below its sales during the same period in the preceding calendar year, and for nonprofits, gross receipts for the COVID-19 period are at least 10% below its gross receipts for the same period in the preceding calendar year.; and (3) did not participate in the Paycheck Protection Program (PPP), the Main Street Loan Program, or the Rapid Recovery Loan Program, as defined. Provides 11 defined terms. Defines a business to mean an entity subject to income tax, and defines a nonprofit to mean an entity exempt from income tax under GS 105-130.11(a)(3) or GS 105-130.11(a)(6). Defines the COVID-19 period to mean the period beginning March 1, 2020, and ending May 31, 2020. Provides for grants awards to be up to two months of the business's average monthly payroll costs, as defined, from the last year plus an additional 25%. Caps the total of all funds granted under the program at $15 million. Directs the Committee to calculate the total amount of grants requested from the applications timely filed and to proportionately reduce each grant award of the total amount requested exceeds this amount. Requires applications to be filed by September 1, 2020, as specified by the Committee.

Section 4.2C

States legislative findings regarding the impact of the COVID-19 pandemic on domestic violence.

Requires the funds allocated in subdivision 3.3(54) in SL 2020-4, as amended, to the Administrative Office of the Courts (AOC) to be used as a grant for Caitlyn's Courage, Inc. to conduct a pilot program in at least nine judicial district with varying caseloads. Requires Caitlyn’s Courage to collaborate with AOC and the respective Chief District Court Judges in developing implementation plans.

Details the four components of the pilot project, including: (1) allowing the use of GPS tracking devices as a condition of pretrial release for defendants of crimes related to stalking, sexual assault, domestic abuse, and violations of a domestic violence protective order (DVPO); (2) establish a local implementation team of specified officials and individuals involved in the court system; (3) operate a 24-hour monitoring system that contacts victims if an offender violates a relevant pretrial release condition or a DVPO; and (4) train all program participants regarding the GPS tracking devices used by the program.

Details seven specifications the electronic monitoring devices used by the program must employ, including the ability to record the offender's immediate location at all times and the ability to automatically notify the victim if an offender is within a restricted proximity to the victim pursuant to court order.

Directs Caitlyn's Courage, Inc. to report to the specified NCGA committees and division by April 1, 2021, on the pilot program, including specified content such as current and future estimated costs of the program's implementation. Requires consultation with participating judicial districts and the ECU Department of Criminal Justice.

Section 4.2D

Requires the Office of Science, Technology, and Innovation (Office) to administer a pilot program (pilot) to promote access to innovative digital and personalized learning solutions for high school students that bridge the gap between chemistry and physical science classes and career and technical education (CTE) career pathways. Requires the local school administrative units to incorporate STEM-focused educational software programs developed by Plasma Games, Inc., in select STEM classes and their CTE programs to encourage student interest and workforce development for chemistry-dependent industries located in the state. Requires the pilot to be conducted for the 2020-21 school year.

Requires a participating local school administrative unit to provide the Office with a plan for the placement of the technology in its school and sets out requirements for the plan and its implementation. 

Requires funds allocated in subdivision 3.3(62) of SL 2020-4, as amended, to be used to provide funds for participating local school administrative units to be used for licensing fees, for educational software, Plasma Games’ operating costs, and for implementation of the pilot.

Requires participating local school administrative units to provide a report by May 1, 2021, to the Office on the implementation of the pilot for the school year, including the specified information. Requires the Office to provide a report by June 1, 2021, to the specified NCGA committee and Division on the implementation of the pilot and the information reported by participating local school administrative units.

Section 1.1(f) amends Section 4.23 of SL 2020-3 (2020 COVID-19 Recovery Act), which (1) institutes a one-month separation requirement for retirement to become effective for retirees of the Teachers’ and State Employees’ Retirement System (TSERS) for individuals that retired on or after October 1, 2019, but before April 1, 2020; (2) sets forth further provisions applicable upon the expiration of the temporary changes to TSERS, including that for eligible retirees during the identified period, any time worked between March 10, 2020, and the time the changes expire is not considered work for purposes of the separation requirement; (3) provides that any earnings received between March 10, 2020, and time the changes expire are not earnings by a TSERS beneficiary law or earnings by a beneficiary of the Local Government Employees Retirement System under state law; and (4) provides that any benefits received by or paid to a law enforcement officer or retired law enforcement officer for separation allowances under Article 12D of GS Chapter 143 cannot be impacted by any work performed between March 10, 2020, and the time the changes expire. Changes the date for expiration of the Section's provisions from August 1, 2020, to August 31, 2020.

Part II

Amends Section 1.7 of SL 2020-4 to extend the reporting requirement for OSBM on the use of allocated funds under SL 2020-4, from March 1, 2021, to April 1, 2021. Makes the same extension for the State Auditor’s preliminary financial audit and final report on the Coronavirus Relief Fund required under Section 1.8 of SL 2020-4.

Authorizes the Department of Public Instruction to withhold up to $12 million for the 2020-21 fiscal year from the transportation allotment and allocate those funds as needed for transportation expenses related to emergency school nutrition services provided between July 1, 2020, and the beginning of the 2020-21 school year to participating public school units. Effective July 1, 2020.

Directs the State Board of Education (State Board) to report to the specified NCGA committee by October 15, 2021, on unpaid meal charges in local school administrative units, including specified information. Directs DPI to transfer $3.9 million in nonrecurring funds from the cash balance of the School Bus Replacement Fund to the State Public School Fund for the 2020-21 fiscal year. Appropriates the transferred funds to provide lunches at no cost to students of all grades qualifying for reduced-price meals in all participating schools for the 2020-21 school year. Provides for DPI to use excess funds appropriated to the breakfast program to implement the provisions if transferred funds are insufficient. Effective July 1, 2020.

Directs OSBM to reduce the appropriations from the Civil Penalty and Forfeiture Fund to the School of Technology Fund by $18 million in nonrecurring funds for 2020-21; instead appropriates that amount from the Civil Penalty and Forfeiture Fund to the State Public School Fund, and directs OSBM to reduce the General Fund appropriations from the State Public School Fund by that amount. Appropriates from the General Fund the $18 million now available in nonrecurring funds for 2020-21 to DPI to implement the School Business System Modernization Plan set out in SL 2017-57. Requires DPI to transfer up to $650,000 of the funds to the Government Data Analytics Center (GDAC) to leverage existing public-private partnerships for ongoing support of the annual school report card data system and the School Finance Reporting system; requires up to $400,000 of those funds to be used for the annual school report card data system and $250,000 for the School Finance Reporting system. Requires GDAC to enter into contracts and interagency data sharing agreements to accomplish the required reporting system under SL 2017-57, by October 1, 2020. Requires DPI to continue partnering to accomplish the continued development, deployment, and ongoing provision of a data integration service that consolidates data from financial, human resources, licensure, student information, and EVAAS. Effective July 1, 2020.

Requires the Division of Central Management and Support of the Department of Health and Human Services to waive the 15% match requirement for the competitive grant process for nonprofit organizations for the 2020-21 fiscal year required under Section 11A.14(b)(2) of SL 2017-57, as amended.

Part III

Provides for the continued validity of 2019 legislation appropriating funds from the Coronavirus Relief Fund to an entity covered by the act, unless expressly repealed or amended by the act or any of the following: SL 2020-4; SL 2020-14; SB 805; SB 808; SB 816; SB 836; HB 1071; HB 1087; and HB 1229.

Directs OSBM to deposit any remaining funds in the Coronavirus Relief Reserve in the General Fund as nontax revenue for the 2020-21 fiscal year if permitted by federal law or guidance, to remain until legislatively appropriated. 

Authorizes OSBM to use up to $645 million appropriated from the Coronavirus Relief Fund in SB 805 for revenue replacement and to establish the Statewide Reserve for Appropriations required by that act, if SB 805 or similar legislation becomes law and federal law or guidance permits. Additionally repeals SB 805’s requirement to reduce the Reserve’s negative appropriation balance if that act becomes law.

Provides for the effect of the act’s headings. Includes a severability clause. Changes the act's short title to Coronavirus Relief Fund/Additions & Revisions. Changes the long title to AN ACT TO PROVIDE ADDITIONAL AND REVISED USES FOR FEDERAL CORONAVIRUS RELIEF FUNDS; TO PROVIDE ADDITIONAL FUNDING FOR SCHOOL NUTRITIONAL NEEDS; TO EXTEND THE ABILITY OF CERTAIN GOVERNMENTAL RETIREES TO ENGAGE IN PART-TIME EMPLOYMENT WITHOUT AFFECTING RETIREMENT; TO PROVIDE FUNDING FOR THE IMPLEMENTATION OF THE SCHOOL BUSINESS SYSTEM MODERNIZATION PLAN; TO WAIVE MATCH REQUIREMENTS FOR A CERTAIN COMPETITIVE GRANT PROCESS FOR NONPROFITS; AND TO MAKE TECHNICAL CHANGES.  

© 2020 School of Government The University of North Carolina at Chapel Hill

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