Bill Summary for H 200 (2019-2020)

Summary date: 

Nov 14 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 200 (Public) Filed Tuesday, February 26, 2019
AN ACT TO PROVIDE FUNDS FOR DISASTER RELIEF FROM HURRICANE DORIAN AND OTHER NAMED STORMS, FUNDS FOR RESILIENCY MEASURES AGAINST FUTURE STORMS, AND FUNDING FOR THE RURAL HEALTH CARE STABILIZATION FUND; TO MAKE CORRECTIONS TO VARIOUS BUDGET RELATED BILLS; AND TO ENACT CERTAIN BUDGET PROVISIONS FROM HOUSE BILL 966, 2019 REGULAR SESSION.
Intro. by Hurley, Johnson, Horn, Elmore.

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Bill summary

Conference report rescinds Senate amendment #1 to the 3rd edition. Additionally makes the following changes to the 3rd edition.

Part I.

Eliminates all appropriations set forth in previous Part I and replaces them with the following.

Section 1.1

Directs the State Controller to transfer $121,585,594 from the Savings Reserve Account to the General Fund. Appropriates those funds in specified amounts to the Hurricane Florence Disaster Recovery Fund, the State Emergency Response and Disaster Relief Fund, and the Department of Environmental Quality (DEQ) for specified purposes, including the provision of a State match for Hurricane Florence federal disaster assistance programs, State match for federal disaster assistance programs related to Hurricanes Matthew and Michael, State match for federal disaster assistance programs and funding for equivalent State assistance programs related to Hurricane Dorian, and matching additional federal funds for the Clean Water State Revolving Fund and Drinking Water State Revolving Fund. 

Section 1.2

Appropriates from the unappropriated balance in the General Fund $59,050,000 in nonrecurring funds for the 2019-20 fiscal year to be allocated in specified amounts for specified purposes to the following entities: the Office of State Budget and Management; the Department of Public Safety (DPS), Division of Emergency Management; the Department of Public Safety, Office of Recovery and Resiliency; the Office of State Budget and Management; the Department of Agriculture and Consumer Services, Division of Soil and Water Conservation; Elizabeth City State University; the Department of Public Instruction; the Department of Environmental Quality; and the Wildlife Resources Commission.

Section 1.3

Appropriates from the General Fund to DPS $1,857,813 in recurring funds for the 2019-20 fiscal year and $2,253,125 in recurring funds for the 2020-21 fiscal year. Allocates the funds in specified amounts for the provision of a grant to the United Way of North Carolina to support operations of the NC 2-1-1 program; to fund new positions to manage federal grants and Division of Emergency management operations, effective January 1, 2020; and to fund the long-term service contract for software and services upgrades to the VIPER system. Excludes these provisions from the scope of the act defined in Section 2.1. Repeals these provisions if HB 966 (the Appropriations Act of 2019) becomes law. 

Section 1.4

Appropriates from the General Fund to the Office of State Budget and Management $13,397,000 in nonrecurring funds for the 2019-20 fiscal year and $6,603,000 in nonrecurring funds for the 2020-21 fiscal year to be used for the Rural Health Care Stabilization Fund. Excludes these provisions from the scope of the act defined in Section 2.1, as well as the miscellaneous provisions prescribed in Sections 4.1 through 4.8. Repeals these provisions if HB 966 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). Defines State agency to include the Golden L.E.A.F., Inc.

Requires any State agency, excluding the Golden L.E.A.F., Inc., 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 to authorize political subdivisions to award contracts for the repair, rehabilitation, or construction of private residential structures funded by State or federal funds provided to the political subdivision because of a disaster declaration by the Governor covering the political subdivision. Allows a political subdivision, for purposes of contracts awarded under this provision, to contract with contractors prequalified by the Division of Emergency Management for that disaster. Exempts the political subdivision from the procedures for prequalifying contractors under GS 143-135.8.

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 total number of projects 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. 

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 December 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 the specified NCGA committees and division, on the use of disaster recovery and assistance funds, other than CDBG-DR funds, expended starting December 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 number of days from application to fund distribution 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.

Effective May 16, 2019, amends Section 3 of SL 2019-15 (Highway Storm Recovery Act) to specify that the reporting requirements contained in SL 2018-136 (2018 Hurricane Florence Disaster Recovery Act) and SL 2018-138 (Hurricane Florence/Supplemental Act) apply to the funds allocated to the Department of Transportation in Section 4.1 of SL 2018-136 and any other funds, whether state or federal, DOT receives or expends for the purposes of disaster recovery, relief, or resiliency.

Part IV.

Moves the provisions of previous Part II to new Part IV.

Additionally, 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.

Part V.

Repeals Section 2.1 of SL 2019-242 (2019-21 Base Budgets/Certain Agencies), which sets forth the General Fund availability used in developing the base budget for the 2019-21 fiscal biennium with unappropriated remaining balances totaling $2,484,667,747 and $4,023,530,251 for the 2019-20 and 2020-21 fiscal years. Replaces the section with a new Section 2.1A setting forth the General Fund availability for the 2019-21 fiscal biennium, with unappropriated remaining balances totaling $2,356,664,283 and $3,694,004,541 for the 2019-20 and 2020-21 fiscal years. 

Amends Section 3.6 of SL 2019-242, adding to the limitations and directions concerning the base budget provisions, to require the Director of the Budget to ensure the prompt payment of the principal and interest on bonds and notes of the State according to their terms. 

Amends Section 5.1 of SL 2019-239 (Combat Absentee Ballot Fraud) to specify that the appropriations for the State Board of Elections (SBE) in SL 2019-242 and any other legislation enacted during the 2019-21 fiscal biennium expressly making appropriations to the SBE are for maximum amounts necessary to support the services and purposes described in the SBE's budget. Modifies the appropriations for the SBE's budget for the fiscal biennium set out in Section 5.2 of SL 2019-239 to specify that the appropriations provided are in addition to the appropriations set forth in SL 2019-209 (Pay Increases/State Employees), SL 2019-242, and any other legislation enacted during the 2019-21 fiscal biennium expressly appropriating funds to the SBE. Modifies Section 5.7 of SL 2019-239, which requires funds appropriated to SBE's Special Fund to be adjusted $3 million in each fiscal year of the biennium to modernize the Statewide Elections Information Management System (System). Instead, phrases the adjustment as a nonrecurring appropriation to the SBE Special Fund for each year of the fiscal biennium to modernize the System.

Amends Section 1.1 of SL 2019-235 (Community Colleges Budget/2019-21 Biennium) to specify that the appropriations for the Community College System (CCS) in SL 2019-235 and any other legislation enacted during the 2019-21 fiscal biennium expressly making appropriations to the CCS are for maximum amounts necessary to support the services and purposes described in the CCS's budget. Modifies the appropriations for the CCS's budget for the fiscal biennium set out in Section 1.2 of SL 2019-235 to specify that the appropriations provided are in addition to the appropriations set forth in any other legislation enacted during the 2019-21 fiscal biennium expressly appropriating funds to the CCS. Further amends SL 2019-235, decreasing the allocation set forth for the Workforce-Focused Multicampus Centers from $2,266,448 to $2,226,348 in recurring funds for each fiscal year of the biennium to support the multicampus sites previously identified.

Adds the following provisions to SL 2019-231 (DOT Budget for 2019-20 Biennium). Requires the additional $7,375,000 in recurring funds appropriated by the act for the 2020-21 fiscal year to the Department of Transportation (DOT) for the Powell Bill Program to be allocated in compliance with specified state law requirements, only to municipalities with a population of 200,000 or less. Clarifies that the provisions do not prohibit municipalities eligible for funds under the provisions from being eligible for recurring funds appropriated to DOT for the State Aid-Powell Bill Fund or otherwise modifying the allocation of recurring funds appropriation in that act to DOT for the State Aid-Powell Bill Fund. Repeals Section 40.4 of HB 966 if HB 966 becomes law.

Repeals Section 8 of SL 2019-237 (Extend Tax Credits/Other Franchise Changes; concerning Department of Revenue Appropriations) if HB 966 becomes law.

Repeals Section 41.4, 41.5, and 41.10 (concerning market-based sourcing and market-based facilitators, and critical disaster infrastructure relief) of HB 966 if HB 966 becomes law.

Enacts GS 147-76.1 to require all funds received by the State to be deposited into the State treasury, including cash gifts and donations, as defined, unless otherwise provided by law. Clarifies that the statute does not exempt funds received by a State officer or employee acting on behalf of the State from the requirement. Adds that the terms of an instrument evidencing a cash gift or donation are a binding obligation of the State except as provided. Clarifies that this provision does not supersede or authorize a deviation from the terms of these instruments that set forth the purposes for which the funds may be used. Makes conforming changes to GS 147-83. Applies to funds received on or after July 1, 2019.

Amends GS 143B-10(c) to provide that the ability of the head of each principal State department to establish necessary subordinate positions within the department, make appointments to those positions, and remove persons appointed to those positions is subject to the limitations of appropriations and the State Budget Act and the North Carolina Human Resources Act (was, subject to the North Carolina Human Resources Act only). Makes conforming changes to the power to establish or abolish positions; transfer officers and employees between positions; and change duties, titles and compensation of existing offices and positions. Adds that nothing in (c) authorizes the transfer of officers or employees between departments without express authorization of the NCGA. Makes statute language gender-neutral.

Amends GS 143C-1-3(a), which requires the Controller to account for State resources through the use of 11 listed fund types by making changes to those fund types as follows. Defines Capital Projects Funds as accounts for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds or fiduciary funds (was, or in trust funds for individuals, private organizations, or other governments). Defines Special Revenue Funds as accounts for the proceeds of special revenue sources, other than debt service (was, other than trusts for individuals, private, organizations or other governments) or for major capital projects, that are legally restricted to expenditures for specified purposes. Changes Agency Funds to Custodial Funds, to be defined as accounts for resources held by the reporting government in a purely custodial capacity. Adds that custodial funds are fiduciary activities that are not required to be reported in investment trust funds, pensions and other employee benefit trust funds, and private-purpose trust funds. Defines Pension and Other Employee Benefit Trust Funds as accounts for resources required to be held in trust for pension plans, other postemployment benefit plans, and other employee benefit plans that meet certain Governmental Accounting Standards Board criteria (was, to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other postemployment benefit plans, or other employee benefit plans). Defines Private-Purpose Trust Funds as accounts for all other trust arrangements not required to be reported in investment trust funds and pension and other employee benefit trust funds (was, all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments). Makes conforming changes.

Amends GS 143C-3-5 by making the following changes to items the Governor must include in budget recommendations to the General Assembly in odd-numbered years. Amends the components of the budget recommendation to refer to requiring a recommended base budget instead of the budget support document. Refers to a recommended Current Operations Appropriation Act instead of a Current Operations Appropriations Act.  Adds that the required list of budget adjustments made during the prior fiscal year that are included in the proposed base budget for the upcoming fiscal year also identify the revision number, revision type, revision title, purpose or programs affected, and the amount of funds moving between the purpose or programs. Requires that the Governor’s Recommended State Budget, together with the Recommended Base Budget and Recommended Capital Improvements Budget Support Document (was, together with the Budget Support Document ) include recommended expenditures of State funds from all Governmental and Proprietary Funds and all funds established for UNC and its constituent institutions.

Amends GS 143C-8-6 to specify that the Recommend Capital Improvements Budget Support Document (was, the Budget Support Document) must include the specified information for each repair and renovation project recommended in the Recommend State Budget. Specifies that the Capital Improvement Budget Support Document (was, the Budget Support Document) must contain specified information for each capital project recommendation.

Amends GS 120-29.5 by adding the requirement that State agencies submitting a report to the NCGA, or a report directed to be made to a NCGA committee or subcommittee, also publish the report on a public website maintained by the agency. Applies to reports submitted on or after January 1, 2020.

Part VI.

Except as otherwise indicated, effective when the act becomes law.

Changes the act's titles.

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