States legislative findings regarding the impact of COVID-19 on nonprofit community arts organizations. 

Directs the State Controller to transfer $3 million from the Coronavirus Relief Reserve to the Coronavirus Relief Fund (Reserve and Relief Fund, respectively; both established in SL 2020-4) for the 2019-20 fiscal year. Appropriates $3 million in nonrecurring funds from the Relief Fund to the Department of Natural and Cultural Resources (DNCR) for the 2019-20 fiscal year. Specifies that the funds remain available until December 1, 2020. Requires the funds to be allocated to the NC Arts Council (Council) to be distributed to nonprofit arts organizations negatively impacted by the COVID-19 emergency for continuity of operation purposes. Restricts use to purposes consistent with specified federal Treasury guidance or subsequent congressional act. Directs DNCR and the Council to develop criteria for the disbursement of grants.

Directs the Council to report to the specified NCGA committee and division by August 1, 2020, on the distribution of funds, and by February 1, 2020, on recipient use of funds. Provides for transfer of any allocation disallowed by federal law back to the Reserve, as specified.