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

Part I

Section 1.4

Adds defined term NCORR (the Department of Public Safety, Office of Recovery and Resiliency).

Part II

Divides the Part into multiple subparts: Subpart II-A, which consists of disaster recovery appropriation, transfer, programs as modified by the committee substitute, new Subpart II-B, pertaining to close out operations and emergency relief, Subpart II-C, consisting of provisions pertaining to the Private Road and Bridge Repair Program (Road and Bridge Program) as modified by the act, Subpart II-D consisting of the retitled Agricultural Disaster Crop Loss Program (Program) (was, Hurricane Helen Agricultural Crop Loss Program) as amended by the act, new subpart II-E, pertaining to debris removal in the affected area and other Hurricane Helene recovery uses of funds, Subpart II-F, pertaining to the Small Business Infrastructure Grant Program, as amended by the act, and new Subpart II-G establishing the School Extension Learning Recovery Program (SELRP). Makes conforming changes, including to Part title. 

Subpart II-A

Section 2A.1

Now directs the State Controller to transfer $307,991,704 million (was, $275 million) from SERDRF to the Helene Fund. 

Section 2A.2

Increases the total appropriations from the Helene Fund from $500 million to $532,991,704 and makes the following changes to the lined allocations:

1. Notwithstanding GS 143B-1040(c), increases funding back to $140 million (was, $125 million) to the Department of Commerce (DOC), Division of Community Revitalization (DCR), for the Home Reconstruction and Repair Program (Home Program) with certain directives to ensure maximum reimbursement from federal funds when available. Now requires DCR to submit a report to the specified NCGA committees and the Fiscal Research Division (FRD) by March 31, 2025, on how the Home Program will be set up before accepting applications.
2. Allocates $192,491,704 for the Department of Agriculture and Consumer Services (DACS) for (1) for the Program and (2) removal and disposal in the affected area of waterway debris from State waters and vegetative debris in accordance with Subparts II-D and II-E of the act. Directs DACS to use remaining funds from the appropriations to the Agricultural Crop Loss Program established in Section 5.9A of SL 2021-180 and Section 5.4 of SL 2022-74. Removes separate $75 million allocation to DACS for the Program.
3. Removes $75 million allocated for (1) natural restoration projects that enable farmers in the affected area to resume production and protect communities against additional flood damage (specifies what is considered an eligible project) and (2) cost-share, engineering, and technical assistance for eligible projects.
4. Removes the Governor's Recovery Office for Western North Carolina (GROW-NC) as one of the agencies to assist the Office of State Budget and Management (OSBM) with coordination under the lined $20 million for debris removal unmet needs.
5. Removes the $10 million appropriated to the Division of Emergency Management of the Department of Public Safety (NCEM) to provide grants to Volunteers Organizations Active in Disaster (VOAD) assisting with disaster response and recovery efforts in the affected area.
6. Modifies the purpose of $10 million allocated to the Office of the State Fire Marshal (OSFM). Removes requirement that the OSFM use the funds to provide funds for repairs of damage to fire stations and to buildings or vehicles used by rescue squads or EMS providers. Instead, requires OSFM to disburse grants to small and volunteer fire departments in counties in the affected area that qualify for Individual and Public Assistance Categories C-G to cover expenses incurred due to Hurricane Helene, along with already covered uses of purchasing equipment, or making capital improvements to assist with readiness for future emergency response.
7. Removes $10 million allocation to the Department of Health and Human Services (DHHS), Division of Social Services (DSS), to supplement rental assistance payments. Instead, appropriates those funds to NCEM to disburse grants to nonprofit organizations for actual and ongoing repair and reconstruction projects.
8. Decreases the $5 million allocated to DOC for the nonprofit corporation with which DOC contracts pursuant to GS 143B-431.01(b) for targeted media campaigns and for grants to local tourisms offices in the affected area by $2 million so that the appropriation is only $3 million. Directs that corporation to coordinate with the Department of Transportation (DOT) on promoting roads and areas that are open and accessible for tourism and travel.
9. Removes the $15 million to Golden L.E.A.F. (Long-Term Economic Advancement Foundation), Inc. (Golden LEAF), a nonprofit corporation, to be allocated to nonprofit organizations located in the affected area.
10. Allocates $4.5 million to the Department of Public Instruction for SELRP in accordance with Subpart II-G, discussed below.

Section 2A.3

Retroactive to October 25, 2024, amends Section 4B.7 of SL 2024-53, which allows DSS to allocate the $1 million in appropriated funds to county departments of social services to assist certain households in imminent risk of eviction the affected area with up to two payments of rental assistance (currently, one payment of rental assistance).

Section 2A.4

Finds that the Hurricane Helene Disaster Supplemental Nutrition Assistance Program (SNAP Program), a federal program to provide food assistance to low-income households with food loss or damages caused by Hurricane Helene, ended in November 2024 and that less than half of the $10 million in State funds appropriated for the administration of the program were spent. Reduces the money allocated for that SNAP Program by $2 million so that the funds can be redirected to DOC for the tourism related allocations discussed above. Makes conforming change to Section 2.1(a) of SL 2024-53 to account for change.  

Makes organizational changes. 

Subpart II-B

2B.1

Effective October 1, 2026, abolishes NCORR by removing out NCORR’s multi-year recovery and resiliency projects and administration of funds provided by the Community Development Block Grant Disaster Recovery program for Hurricanes Florence and Matthew in GS 143B-1040 (setting up NCORR) and GS 143B-1041 (NCORR interagency coordination) from GS Chapter 143B.

2B.2

Directs the Controller to transfer the following sources to the OSBM Disaster Relief Reserve (Reserve) to allocate to NCORR as follows:

• $104.3 million from the Savings Reserve
• $104.3 million from SERDRF
• $8,408,296 from the Hurricane Florence Disaster Recovery Fund

Directs that of those transferred funds, $112,708,296 are appropriated within the Reserve and allocated to NCORR for the completion of the homeowner recovery program for Hurricanes Matthew and Florence. States the act’s intent to appropriate future funds for unmet needs. Requires NCORR to prioritize: (1) entering into a memorandum of understanding with the Housing Finance Agency to retrieve eligible funding for the homeowner recovery program and (2) spending those funds received from the Housing Finance Agency for the remaining unmet needs for the homeowner recovery projects. These funds revert to the Savings Reserve on October 1, 2026.

Section 2B.3

Limits future State funding to NCORR to future enactments of a general law by the NCGA. Provides for NCORR to issue Notices to Proceed to program-selected contractors for the homeowner program for households impacted by Hurricanes Matthew and Florence on the schedule set forth in the act. Sets a schedule concerning maximums for the total number of homeowner projects that are not awarded to contractors. Provides that disaster relief homeowner recovery programs for Hurricanes Matthew and Florence do not count toward maximums when assessing NCORR's compliance. Requires NCORR to report to the specified NCGA commission and the FRD written reports on their compliance with the deadlines set forth in the schedule pertaining to NCORR’s issuance of Notices of Intent to Proceed and the maximums schedule within five business days of each deadline as well as written reports and weekly reports on specified matters. Provides for notice if the specified NCGA commission determines that NCORR is not in compliance with the schedules set forth above.  

Section 2B.4

Provides for monthly reporting by NCORR to the specified NCGA commission and the FRD on specified matters concerning projects completed and unawarded in the homeowner recovery program for Hurricanes Matthew and Florence starting August 1, 2025, until NOCORR is dissolved, as provided for in this act. Modifies the frequency of OSBM’s reports to the specified NCGA committee and the FRD on audits of NCORR as set forth Section 1F.2 of SL 2024-57 (hurricane disaster relief) from quarterly to monthly. 

Subpart II-C

Section 2C.1

Allows NCEM to use up to $500,000 of the funds appropriated to the Road and Bridge Program for administrative costs.

Requires NCEM to enter into a cost-share agreement with an HOA for all project engineering and construction costs not to exceed NCEM funding 75% of the project if the road or bridge is owned by an HOA. Requires that any funds paid by the HOA as part of such an agreement be non-State funds. Prevents responsibility for further maintenance or safety of any repaired private road or bridge from being transferred to or assumed by the State or a political subdivision thereof.

Subpart II-D

Section 2D.1 and 2D.2

Expresses the general assembly’s intent to provide additional funding in a future enactment of a general law. Changes eligibility from farmers affected by Hurricane Helene to farmers with verified losses from an agricultural disaster  (a secretarial disaster designation declared by the USDA Secretary for qualifying counties) in the State in 2024. Expands the types of losses to include aquaculture commodities and farm infrastructure (currently just losses of agricultural commodities). Extends the deadlines set forth in the Program’s process for verification of loss from 30 days from the relevant triggering event to 45 days past that event. Removes requirement that a person must first qualify and receive payment from certain USDA programs to qualify for assistance under the Program. Removes provisions pertaining to livestock and poultry.  

Expands the types of documentation DACS may obtain as part of an audit under the Program to include documentation of insurance payments or federal funds for verified losses. Modifies defined terms agricultural or aquacultural commodity. Removes terms livestock, person, and poultry. Adds new terms agricultural disaster, department, eligibility date, program, and qualifying county. Adds a specified NCGA committee to the report DCAS must submit six months after the Program receives funds for an agricultural disaster and every six months thereafter (was, due on the first day of the month six months after the act becomes effective). Removes expiration of the Program as a potential report end date trigger. Changes the entity receiving unspent Program funds from the Helene Fund to SERDRF. Makes conforming changes.

Subpart II-E

Section 2E.1

Allows DACS to use the funds allocated for the Program in subpart II-A for the Program for the removal and disposal in the affected area of (1) waterway debris from the waters of the State and (2) vegetative debris. Gives the Commissioner of DACS the discretion to use any funds appropriated for the Program for any purpose related to Hurricane Helene recovery in the affected area. Defines vegetative debris, waters of the State, and waterway debris. Requires DACS to submit a report to the specified NCGA committees and the FRD on specified matters pertaining to the uses of the funds spent under the section within 30 days of the end of each fiscal quarter the funds are spent.

Subpart II-F

Section 2F.1

Changes the grant limits under the Small Business Infrastructure Grant Program so that the total grant amount per county cannot exceed 10% of the funds appropriated for the program (was, the lesser of the cost of the qualifying infrastructure needs or $1 million per project). Reduces the amount DOC may retain to cover administrative expenses from 3% to 1.5% of appropriated funds.

Subpart II-G

Section 2G.1

Defines participating school unit as a local school administrative unit or charter school that deemed as complete 15 or more instructional days or equivalent instructional hours. Requires participating school units to offer a School Extension Learning Recovery Program (SELRP) outside of the instructional school calendar following the end of the 2024-25 school year to provide instruction on specific subjects and enrichment to students in grades four through eight to address learning losses and negative impacts students have experienced due to unusual and extraordinary conditions related to Hurricane Helene. Limits voluntary participation to students in fourth through eighth grade during the 2024-25 school year, with priority to be given to students that have not reached reading or math proficiency by the end of the 2024-15 school year, as demonstrated by State standardized testing. Permits other students to enroll as space permits. Provides for parental consent. Provides for where enrolled students should attend SELRP, including those attending charter schools that have chosen not to participate in SELRP. Requires participating school units to submit a SELRP plan with seven listed components to DPI by the required date. Provides for a review by DPI. Specifies that teachers and other participating employees will be considered contract personnel for the duration of SELRP. Specifies such personnel will not be considered employees under the Teachers and State Employee Retirement System [TSERS] and the State Health Plan, nor will such employees be considered earning compensation under TSERS. Requires all school units to report on four specified matters related to SELRP to DPI by October 15, 2025. Requires DPI to report on four specified matters related to SELRP to the specified NCGA committee by January 15, 2026. Requires the Office of Learning Research at UNC-Chapel Hill (OLR) to study the overall effectiveness of SELRP. Requires DPI to provide OLR with information it needs to conduct the study. Provides for a report on the study results by OLR to the specified NCGA committee by no later than January 15, 2027.

Directs that of the funds appropriated to DPI in the act, $4.5 million will be used to establish the SELRP. Provides for allocation to participating school units as follow: (1) up to $200,000 statewide for the assessments (2) $20,000 to each participating school and (3) the remainder of the funds to be allocated on the basis of the average daily membership in grades four through eight.

Makes organizational and conforming changes, including to part’s title.

Part IV

Section 4.1

Changes the start date for OBSM’s allocation reporting requirements to May 15, 2025 (was, April 1, 2025) and the frequency of those reports from monthly to quarterly. Deceases the number of NCGA committees that receive the report.

Section 4.2

Requires the Governor’s office to report to the State Auditor on all disaster relief funds allocated to Hurricane Helene relief that have been disbursed as of the enactment of the section by no later than seven business days after the act becomes law and thereafter, on a weekly basis, provide detailed documentation and reports on future disbursements of all disaster relief funds allocated to Hurricane Helene relief as they are disbursed. Specifies that failure to comply with the reporting deadlines will trigger a hearing by the specified NCGA commission. Requires the State Auditor to report to the specified NCGA commission if the Governor fails to meet a reporting deadline. Requires the State Auditor to produce a report on funds spent for Hurricane Helene relief upon request by the specified NCGA commission and to conduct additional periodic financial and performance audits of the Division of Emergency Management, GROW NC, and any additional financial or performance audits as requested by the General Assembly. Requires the State Auditor to provide and maintain a public dashboard that compares the amount of funds appropriated by the legislature with the amount expended by the executive branch for Hurricane Helene relief and any other information the State Auditor deems relevant.

Makes conforming changes, including to part’s title.

Part V

Section 5.1

Makes conforming change to account for extension of the state of emergency until June 30, 2025. Removes Section 10.3 (“Storm Debris Open Burning Regulatory Relief”) of SL 2024-51 (Helene I) from the extension of the expiration dates provided by the act.  Adds Section 1D.9 of SL 2024-57 (Helene III) to the extension of the expiration dates provided by the act.

Section 5.3

Expands the use of inmates under the Statewide Misdemeanant Confinement Program to clean up local and State roadways under Section 19C.10(a) of SL 2021-180 to include removal of debris resulting from a major disaster declared by the President of the United States or the Governor. Applies to debris removal resulting from disaster declarations made before, on, or after the act becomes law.

Section 5.5

Requires DOT to contract with third-party administrator to expeditiously seek reimbursement from FEMA and the Federal Highway Administration (FHWA) for all qualifying disaster expenditures in the affected area. Requires DOT to submit monthly reports to the specified NCGA committee and the FRD by the end of each month with an itemized list to include all disaster expenditures in the affected area that qualify for federal reimbursement for which reimbursement is still pending and the expected amount.

Section 5.6

Amends the triggering event for funeral establishments to be exempt from certain requirements under GS 90-210.27A(a1) so that it only applies when a funeral establishment is destroyed by certain events (currently, applies when the preparation room of a funeral establishment is destroyed). Now allows for the Board to grant a waiver not to exceed one year (was, up to two-year waiver) from the requirements of GS 90-210.27A(a) (governing preparation rooms) and GS 90-210.27A(c) (requiring reposing rooms). Allows for further extension for up to one year from the date of loss (was, two years). Authorizes a court to enter an order upon petition of the establishment and required findings granting an additional extension of up to two years after that (was, three years). Removes regulations and requirements of the Division of Health Services from the legal requirements governing an establishment granted a waiver. Authorizes the State Board of Funeral Service to adopt rules to implement the changes to GS 90-210.27A(a1).

Section 5.8

Notwithstanding any provision of law to the contrary, allows, for any instructional days or equivalent hours missed due to inclement weather during the months of December 2024 through February 2025, Avery County Schools, Madison County Schools, Mitchell County Schools, Yancey County Schools, and Watauga County Schools to, in their discretion: (1) make up any number of the instructional days or equivalent hours missed, (2) deem as completed any number of the instructional days or equivalent hours missed up to a total of 10 days, or (3) implement a combination of both of the above. Specifies that all employees and contractors of a public school unit granted school calendar flexibility will be deemed to have worked for any scheduled instructional days missed due to inclement weather during the months of December 2024 through February 2025 that a public school unit has deemed completed and is not required to make up. Directs that employees and contractors will be compensated in the same manner they would have if they had worked on the scheduled instructional days missed. Of the funds allocated to DPI from the Hurricane Helene Disaster Recovery Fund to provide compensation to public school unit employees and contractors of schools participating in the National School Lunch Program or School Breakfast Program under Section 8.1(b) of SL 2024-51, requires DPI to provide from funds available, compensation authorized by the section to public school unit employees and  contractors of schools participating in the National School Lunch Program or School Breakfast Program for scheduled instructional days when compensation would have been provided by school meal receipts or by federal funds.

Directs that employees and contractors will be compensated in the same manner they would have if they had worked on the scheduled instructional days missed.

If the funds are insufficient to provide compensation authorized by this section to public school unit employees and contractors in schools participating in the National School Lunch Program or School Breakfast Program for scheduled instructional days when compensation would have been provided by school meal receipts or by federal funds, directs DPI to develop a uniform criteria to determine the comparative economic need of eligible public school units and to ensure that priority is given to public school units with greatest economic need when awarding available funds.

Removes provisions: (1) modifying the local government cashflow loan program and (2) providing state aid to public libraries fund. Makes organizational changes.

Section 5.9

Modifies the expiration date for the waiver of collaborative practice agreement rules issued by the NC Medical Board and NC Board of Nursing under of Section 4B of SL 2024-53 (Helene II) so that the waiver now ends one year after the statewide declaration of emergency issued by the Governor in Executive Order 315 (was, ends when the order, as extended, expires).

Part VI

Section 6.1

Clarifies that any provisions extended under Part III (the extension of the state of emergency) or Section 5.1 (extending certain provisions of 2024 Helene relief bills until the expiration of the state of emergency) is retroactively effective on March 1, 2025, unless otherwise prohibited by law. 

Makes organizational and technical changes.