Bill Summary for H 1105 (2019-2020)

Summary date: 

Sep 2 2020

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 1105 (Public) Filed Thursday, May 14, 2020
AN ACT TO PROVIDE ADDITIONAL AND REVISED USES FOR FEDERAL CORONAVIRUS RELIEF FUNDS, TO PROVIDE FUNDING FOR DISASTER RECOVERY, AND TO MAKE OTHER REVISIONS OF LAW.
Intro. by Arp, Saine, B. Jones, Reives.

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Bill summary

Senate committee substitute to the 3rd edition makes the following changes. Makes conforming changes to the act's titles. Except where otherwise indicated, adds the following new provisions.

Part I.

Section 1.1

Amends Section 3.1 of SL 2020-4, as amended, by increasing the amount that the State Controller must transfer for 2019-20 from the Coronavirus Relief Reserve to the Coronavirus Relief Fund (Fund) from $1,795,988,029 to $2,363,390,646. Makes a conforming change in the amount to be appropriated from the Fund to the Office of State Budget and Management (OSBM). Further amends SL 2020-4 to provide that funds appropriated from the Fund are available to expend until the deadline established by applicable federal law or guidance and requires that the funds be returned in accordance with applicable federal law or guidance if unexpended by that deadline (was, remain available to expend until December 30, 2020). Adds the requirement that interest earned on funds held in the Local Reserve be transferred to the Fund.

Section 1.2

Amends Section 3.3 of SL 2020-4 by making the following changes to the amounts to be allocated by OSBM.

Decreases the amount allocated to OSBM to be used for the continuity of operation needs across State government, from $370,000,000 to $237,500,000. Expands upon the allowable expenditure of those funds to also include rent and utility assistance.

Deletes the $300,000,000 to OSBM that was to be allocated to the General Maintenance Reserve in the Highway Fund for the Department of Transportation (DOT).

Deletes the $20,000,000 to OSBM that was to be allocated to State agencies negatively impacted by the loss of anticipated receipts.

Increases the amount allocated to the Department of Public Instruction to improve internet connectivity for students by providing community and home mobile Internet access points, from $11,000,000 to $21,000,000.

Increases the amount allocated to the UNC Board of Governors that is to be allocated to the State Education Assistance Authority to provide funds to each eligible private postsecondary institution, from $20,000,000 to $25,000,000.

Increases from $15,000,000 to $17,000,000 the amount allocated to OSBM to be allocated to the Duke University Human Vaccine Institute (DHVI) and expands upon the allowable uses of the funds to also include the development of rapid, low-cost COVID-19 testing for active infections, in addition to the development of a safe and effective COVID-19 vaccine that will be available to the public as soon as possible.

Increases the amount allocated to the Department of Health and Human Services to be allocated allocate equally among the state’s six food banks, from $6,000,000 to $12,000,000.

Adds a $20,000,000 allocation to the Department of Health and Human Services (DHHS), Division of Social Services (DSS), for facilities licensed to accept State-County Special Assistance (defined as any residential care facility licensed by the DHHS that is authorized to accept State-County Special Assistance payments from its residents), to be used as temporary financial assistance in the form of a monthly payment to offset the increased costs of serving residents who are recipients of State County Special 26 Assistance during the COVID-19 emergency. Sets out the amount of the monthly payments, with payments terminated on the earlier of December 30, 2020, or when the funds are depleted.

Increases the amount allocated to OSBM to be allocated to the North Carolina Association of Free and Charitable Clinics for its member clinics to cover the cost of eligible health services provided during the COVID-19 emergency and other allowable costs from $7,425,000 to $12,425,000. Adds an additional reporting deadline and makes a clarifying change.

Increases the amount allocated to DHHS for a grant to NC MedAssist, to offset increased costs for providing prescription assistance services during the COVID-19 pandemic to individuals who are indigent or uninsured from $1,500,000 to $6,500,000.

Increases from $7,425,000 to $12,425,000 the amount allocated to OSBM to be allocated to the North Carolina Community Health Center Association and adds that $600,000 of the funds must be used for equal distribution to the three specified North Carolina federally qualified health center look-alikes, to cover the cost of eligible health services provided during the COVID-19 emergency and other allowable costs. Adds an additional reporting deadline and makes a clarifying change.

Adds a $34,002,617 allocation in nonrecurring funds to OSBM to be allocated for COVID-19 testing, with $29,002,617 to be distributed in equal amounts to the three specified nonprofits to purchase COVID-19 tests that, at a minimum, have been approved for emergency use by the USFDA; sets out additional restrictions on the use of these funds by the nonprofits. Requires that $5,000,000 be allocated to the UNC Board of Governors to effectively mitigate the spread of COVID-19 on UNC campuses through testing, tracing, enforcing required on-campus isolation and quarantine, and providing COVID-19 related health care services.

Increases the allocation to DHHS for provide funding for food banks, support for residential settings that are incurring additional costs to mitigate spread or isolate positive cases, adult and child protective services response, support for homeless and domestic violence shelters and housing security, child care response, and costs to expand NCCARE360 from $19,000,000 to $20,000,000 and allocates that additional $1 million to Reinvestment Partner for its Produce Prescription Program.

Increases the allocation to DSS to assist in serving children in foster care during the COVID-19 emergency, from $3,550,000 to $4,350,000.

Decreases the amount allocated to OSBM for Golden LEAF to provide emergency loans to assist small businesses from $125,000,000 to $75,000,000.

Further amends the allocation to the Department of Information Technology for the Growing Rural Economies with Access to Technology Fund (as amended in Section 3.1 of the 3rd edition of this act), by allowing funds allocated under this subsection remaining unawarded on or after September 1, 2020, to be awarded for GREAT program grants that may be awarded in a special supplementary grant process occurring after October 1, 2020.

Increases from $10,000,000 to $20,250,000, the amount allocated to the Department of Agriculture and Consumer Services and adds that the funds are to provide support for meat processing facilities and for seafood processing facilities.

Increases the allocation to the Department of Commerce for grants awarded by the Economic Investment Committee, from $15,000,000 to $60,500,000.

Increases from $7,000,000 to $27,000,000 the amount allocated to the Department of Public Instruction (DPI) to provide personal protective equipment for public schools and adds that these funds may also be used to provide COVID-19 testing for public schools.

Increases from $5,000,000 to $22,000,000 the amount allocated to DPI to hold in reserve and to award as grants to public school units that apply for funds to provide access to services for exceptional children who have lost critical services as a result of school closures related to COVID-19. Adds a provision encouraging DPI to use at least $17,000,000 of these funds for in-person services for qualifying children.

Amends the provision allocating $4,300,000 to OSBM for the Children's Advocacy Centers of North Carolina, Inc., by requiring that at least 75% of the funds be distributed to child advocacy centers in this State that are in good standing with the organization to assist with increased costs due to the COVID-19 pandemic (previously required that all of the funds be distributed to child advocacy centers in this State that are in good standing with the organization to cover the cost of increased child caseloads and the statewide provision of more effective and available virtual counseling due to the COVID-19 pandemic).

Allocates $440,541,000 to the Department of Revenue for the Extra Credit Grant Program grants, established in this act.

Allocates $2,000,000 to OSBM for the Carolina Small Business Development Fund, to be used for business advisory services to and deploying capital to small businesses in the states to assist those businesses with losses due to a disruption of services resulting from the COVID-19 pandemic. Sets out allowable uses of the funds.

Allocates $3,750,000 to OSBM to be allocated as a grant to the CAGC Foundation, Inc., to be used for the construction related purposes enumerated in Section 4.14 of this act.

Allocates $87,000,000 to the Department of Commerce, Division of Employment Security, to be credited to the Unemployment Insurance Trust Fund to provide the increased benefit amount payable under GS 96-14.2(e). Provides that if the increased benefits paid under the statute exceed the allocated amount, then an additional amount is appropriated from the General Fund to the Unemployment Insurance Trust Fund. States the NCGA’s intent to hold harmless the Unemployment Insurance Trust Fund for any increased benefits paid under the statute.

Allocates $50,000,000 to OSBM to fulfill any outstanding state match requirement due to FEMA under the federal Lost Wage Assistance program at the close of that program. Allows OSBM, if this amount falls short of the required state match, to use funds allocated under Section 3.3(3) of S. 2020-4 to meet the remainder of the match requirement. Allocates any of these funds that are not needed to meet the outstanding state match requirement to be used for the continuity of operation needs across State government.

Allocates $2,000,000 to the Department of Agriculture and Consumer Services (DACS) for emergency support of milk producers.

Allocates $750,000 to DACS for emergency aid for farmers market operators and local food enterprises. Establishes that eligible categories for this aid include, but are not limited to, labor, technology or software upgrades, infrastructure enhancements, COVID-19 education materials, PPE, and test kits.

Allocates $19,700,000 to the Department of Natural and Cultural Resources (DNCR) for direct aid to mitigate business disruptions due to COVID-19 at Arts Councils throughout the State and at various statewide support groups for cultural and historical attractions. Sets out how the funds are to be distributed, specifying the amounts, recipients, and allowable uses of the funds.

Allocates $1,000,000 to DACS for a grant to the North Carolina Association of Agricultural Fairs to alleviate enterprise impacts due to COVID-19 at the North Carolina State Fair and the Western North Carolina Agricultural Center.

Allocates $2,100,000 to DNCR to address needs at State Parks and Trails caused by high demand and record visitation levels due to COVID-19. Sets out eligible uses of the funds.

Allocates $400,000 to DNCR for the NC Symphony to mitigate increases in operational expenses for the Symphony's educational and community outreach missions due to COVID-19.

Allocates $700,000 to OSBM to allocate to the Carolina Ballet, to alleviate operational disruptions due to the COVID-19 pandemic.

Allocates $2,650,000 to the Department of Commerce to be allocated in specified amounts to Prospera North Carolina, LLC, to a North Carolina non-profit corporation with which the Department contracts for economic marketing, to Southeastern Economic Community Development Corporation, Inc., to Sampson County, to Sampson Community College, to the Paul J. Ciener Botanical Garden, and to Old Salem, Incorporated, a non-profit corporation.

Allocates $1,500,000 to the Department of Commerce for the One NC Small Business Fund for the mitigation of impacts from COVID-19 at eligible businesses to foster job creation and promote research and technological development in response to COVID-19; prohibits using the funds for a required match for any federal grant program.

Allocates $150,000 to OSBM for the Steve Smith Family Foundation, for its virtual learning support program that assists homeless students during the COVID-19 pandemic; specifies allowable uses of the funds.

Allocates $5,000,000 to the Community Colleges System Office that is to be allocated to community college campuses to purchase personal protective equipment; also allows the funds to be used for COVID-19 testing on campuses.

Allocates $9,000,000 to UNC-Charlotte for the Bioinformatics Research Center, with the funds required to be used as specified in the specified amounts.

Allocates $13,000,000 to the UNC Board of Governors (UNC BOG) to be allocated to constituent institutions for the purchase of personal protective equipment.

Allocates $6,500,000 to the UNC BOG for the State Education Assistance Authority to provide scholarships as an alternative educational option for certain students with disabilities during the COVID-19 pandemic. Sets out requirements for awarding and disbursing scholarships under the program.

Allocates $250,000 to the UNC BOG for the State Education Assistance Authority to be allocated to nonpublic schools enrolling students who receive scholarship funds pursuant to the Opportunity Scholarship Grant Program, to purchase personal protective equipment for use in schools. Sets out how the funds are to be allocated to the eligible nonpublic schools.

Allocates $5,000,000 to the UNC BOG for the State Education Assistance Authority to provide funds to each eligible private postsecondary institution, to be allocated as specified, for the purchase of personal protective equipment.

Allocates $1,100,000 to DPI to be allocated to Communities in Schools of North Carolina, Inc., for personal protective equipment for staff and assistance for students in K-12 with remote instruction, nutrition, family support, and mental health.

Allocates $115,000 to DPI for Mount Airy City Schools, to establish the Smart School Bus Safety Pilot Program.

Allocates $1,000,000 to DPI for Alamance-Burlington Schools, for school nutrition services, transportation services, technology, remote instruction materials and services, personal protective equipment, temperature screening tools, Alamance-Burlington Connects Initiative, and other goods and services necessitated by the COVID-19 pandemic.

Allocates $500,000 to DPI to be allocated as specified to public school units in Bertie County, Camden County, Chowan County, Perquimans County, Tyrrell County, and Washington County, for school nutrition services, transportation services, technology, remote instruction materials and services, personal protective equipment, temperature screening tools, and other goods and services necessitated by the COVID-19 pandemic.

Allocates $5,000,000 to the Community Colleges System Office to be allocated to community college campuses for equipment costs for healthcare workforce and first responder programs necessary for the State's response to the COVID-19 pandemic.

Allocates $14,300,000 to OSBM for the PPE-NC Initiative. Allocates funds in specified amounts to the City of Conover and Gaston County, to be used for the specified purposes.

Allocates $1,000,000 to the Community Colleges System Office for Cleveland Community College for personal protective equipment and costs for equipment and training related to COVID-19.

Allocates $1,000,000 to the UNC BOG for the New Teacher Support Program.

Allocates $500,000 to UNC-Chapel Hill for the Southern Regional Area Health Education Center for COVID-19 related response activities.

Allocates $500,000 to East Carolina University for research in partnership with the specified entities on the key impacts of COVID-19, including studying specified health and economic related issues.

Allocates $5,000,000 to Fayetteville State University to complete physical and virtual technology laboratories required to continue existing research on impacts of the COVID-19 pandemic and to develop solutions for industry partners and vulnerable populations. Sets out the required uses of the funds and specified amounts to be allocated towards those purposes.

Allocates $1,000,000 to DPI to make Google safety management products available to public school units.

Allocates $4,500,000 to OSBM, Special Appropriations, to be allocated to the Community Foundation of Greater Greensboro, Inc., to mitigate impacts resulting from the COVID-19 pandemic. Allocates the funds in the specified amounts to Guilford, Alamance, Randolph, and Rockingham counties.

Allocates $12,000,000 to the Department of Administration, Council for Women, to be allocated in the specified amounts for domestic violence centers and for sexual assault programs.

Allocates $50,000 to the Department of Administration, Division of Non-Public Education, for temporary positions to assist in processing the increased volume of homeschool filings.

Allocates $19,900,000 to YMCA of the Triangle Area, Inc., for the North Carolina Alliance of YMCAs to develop and administer a grant program to facilitate remote learning opportunities during the COVID-19 pandemic. Sets out requirements for the program and caps individual grants at $100,000.

Allocates $5,000,000 to the State Board of Elections, to prevent, prepare for, and respond to the coronavirus pandemic during the 2020 federal election cycle. Allocates funds in the specified amounts to supplement county funds for election day voting, to increase election day worker pay, for an advertising campaign to recruit election day workers, and to reimburse counties for additional election day worker pay. Sets out additional requirements for the use of these funds and establishes reporting requirements.

Allocates $300,000 to the Department of Public Safety (DPS) to be used in the specified amounts as a grant to the Craven County Sheriff's Office and to the Town of Chocowinity to purchase Voice Interoperability Plan for Emergency Responders (VIPER) radios.

Allocates $100,000 to DPS for a grant to the Lenoir County Emergency Services for equipment needed to respond to COVID-19.

Allocates $600,000 to the DSS to continue increasing access to Food and Nutrition Services benefits for individuals who are dually eligible for Medicare and Medicaid in response to the COVID-19 pandemic.

Allocates $35,000,000 to DHHS, Division of Child Development and Early Education, for operational grants to licensed child care providers. Sets out guidelines on distributing the funds and enumerates allowable uses of the funds.

Allocates $8,000,000 to DHHS, Division of Child Development and Early Education, for assistance payments to parents using remote learning opportunities for the care of their children. Sets out requirements for applying for assistance and distributing the funds.

Allocates $20,000,000 to DHHS to establish the North Carolina COVID-19 Provider Relief Fund (Fund) to reimburse providers enrolled in the North Carolina Medicaid program for costs incurred in providing COVID-related treatment to uninsured patients in North Carolina during the COVID-19 pandemic. Requires reimbursement for expenses incurred on or after March 10, 2020, through December 30, 2020. Sets out additional requirements for the creation of the Fund.

Allocates $300,000 to DSS for Children's Home Society of North Carolina, Inc., for virtual foster care and adoption services for families and children experiencing hardship as a result of the COVID-19 pandemic.

Allocates $100,000 to OSBM to provide a grant to Backpack Ministry, Inc., Food for Families, to address increased food service demands due to the impact of COVID-19.

Allocates $300,000 to the DSS to establish a student health collaborative pilot program.

Allocates $400,000 to OSBM for a grant to Bridge to Recovery, Inc., to offset the costs of increased demand for substance use disorder services related to the impacts of COVID-19 and to fund the development of innovative substance use disorder programs to address growing substance use disorder concerns in Union County, Stanly County, and surrounding areas as a result of COVID-19.

Allocates $500,000 to OSBM for a grant to Triangle Residential Options 26 Substance Abusers, Inc., for (1) offsetting increased operational expenses incurred for providing comprehensive residential substance use disorder treatment associated with the COVID-19 29 pandemic, from March 1, 2020, to  December 30, 2020, and (2) any other COVID-19 related losses or expenses incurred during that time period, as allowed under the CARES Act.

Allocates $1,000,000 to OSBM for Nurse Family Partnership, to help offset COVID-19-related expenses incurred for the specified services provided and supplies used within the State between March 1, 2020, and December 30, 2020.

Allocates $750,000 to OSBM for North Carolina Assisted Living Association, to facilitate safe visitation and communication between residents and family members and to maintain CDC infection control guidance and safety standards. Sets out how the funds are to be distributed as well as the allowable uses of the funds.

Allocates $34,000 to OSBM for a grant to the Iredell County Health Department, to purchase specified equipment for a mobile mass-testing site for COVID-19.

Allocates $25,000,000 to OSBM for the North Carolina Medical Society Foundation for distribution to independent medical practices in this State with demonstrable financial needs related to COVID-19.

Allocates $10,000 to OSBM for Watauga County, for the purchase of a portable broadband kit for the local health department. Sets out prohibited uses of the funds.

Allocates $6,000,000 to DHHS for personal protective equipment and sanitizing supplies for prevention efforts to combat COVID-19 in child care settings.

Allocates $23,000,000 to OSBM to be allocated in equal amounts to the nonprofit organizations known as North Carolina Senior Living Association (NCSLA), North Carolina Health Care Facilities Association (NCHCFA), and North Carolina Assisted Living Association (NCALA), to purchase and distribute, free of charge, to their member facilities COVID-19 related supplies and equipment necessary for life, safety, health, and sanitation, and personal protective equipment. Sets out reporting requirements.

Allocates $38,000,000 to DHHS, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services (DMH/DD/SAS), for distribution to local management entities/managed care organizations (LME/MCOs) as additional lump sum single-stream allocations; limits the use of funds providing eligible individuals direct services associated with the COVID-19 pandemic. Requires that the fund be distributed in the specified amounts to the seven named entities.

Allocates $30,000,000 to the Department of Information Technology for the Growing Rural Economies with Access to Technology Fund to provide funding for a special supplementary GREAT Act grant process in accordance with Section 4.17 of this act (this replaces funding in Section 1.3 of the previous edition of this act that transferred the same amount to the State Capital and Infrastructure Fund for the GREAT fund for broadband grants).

Section 1.3

Adds the following to SL 2020-4.

Establishes the Extra Credit Grant Program, to help families with qualifying children by providing economic support to assist with virtual schooling and child care costs during the COVID-19 pandemic. Allows the Department of Revenue to use up to $5 million for administration of the program with the remainder of the $440,541,000 in funds used to provide grants. Appropriates additional funds from the General Fund for 2020-21 if the amount of grants awarded exceeds the amount of funds allocated to the program. Sets the grant amount at $335 per eligible individual (spouses filing a joint 2019 NC tax return are considered one eligible individual) and requires the grants to be awarded by December 15, 2020. Sets out the procedure for disbursing the grant money. Grants are automatically awarded to an individual who filed a 2019 State income tax return on or before October 15, 2020, if the taxpayer reported that either the taxpayer or, if filing a joint return, the taxpayer's spouse, was a resident of the State for the entire 2019 calendar year, and the taxpayer reported at least one qualifying child. Allows other individuals to apply for a grant, to be postmarked on or before October 15, 2020, if (1) the applicant did not file a 2019 State income tax return solely because the applicant's gross income for the 2019 taxable year did not exceed the State filing requirements for the taxpayer's filing status; the applicant provides a name, mailing address, and any other information required by the Secretary, the applicant was a State resident for the entire 2019 calendar year; and the applicant had had at least one child that met the conditions of a qualifying child for the 2019 calendar year.

Allows local school administrative units, for the 2020-21 school year, to use funds from the transportation allotment for school nutrition, school- and community-based child care, sanitizing schools and buses, personal protective equipment, and remote instruction.

States NCGA findings. Requires that the $3,750,000 allocated to OSBM for a grant to CAGC Foundation, Inc., be used as follows: (1) $3,000,000 as a grant to the Foundation for subgrants to specified categories of entities for coronavirus pandemic mitigation in the construction workplace, with additional requirements for these mitigation efforts detailed in the act; (2) $750,000 as a grant to the Foundation for to  the specified categories of entities for (a) multi-lingual education, training, and community outreach programs with accompanying educational materials using various media to reach construction workers, and (b) online and in-person construction industry job safety events related to coronavirus pandemic mitigation measures. Eligible entities are: nonprofit organizations, businesses with a physical presence in the State that did not receive other forms of federal or State coronavirus-related aid, with outreach to rural, minority-owned, and women-owned small businesses; media organizations that will produce public service materials in English and other languages related to the health, safety, and welfare of construction industry workers during the coronavirus pandemic; and other entities determined eligible by OSBM to carry out the purposes of the grants. Requires collaboration with the Department of Labor and DHHS. Requires necessary contractual and interagency agreements be executed within 30 days of this section becoming law.

Sets out NCGA findings. Requires that the funds allocated in this act to DACS for emergency support of milk producers be allocated to the North Carolina Dairy Stabilization and Growth Fund for grants to compensate eligible dairy producers for losses incurred as a result of the collapse in dairy prices due to the COVID-19 pandemic or to improve the resiliency and adaptability of the dairy supply chain to future pandemics. Defines eligible producer as a Grade A milk producer who can demonstrate to the satisfaction of DACS that the producer is complying with federal Grade A milk regulations. Sets out minimum requirements for the grant program, including establishing a formula for determining the amount of a monthly grant payment, and setting the maximum grant amount given to any producer in a month at $25,000. Requires DACS to report to the specified NCGA committee by November 1, 2020, and February 1, 2021. Allows DACS to use up to $50,000 of the allocated funds to study issues arising from the COVID-19 pandemic with transportation and product diversification within the state’s dairy industry; requires a report to the specified NCGA committee by April 1, 2022. Specifies that nothing in this subsection allows the expenditure of funds from the Coronavirus Relief Fund past December 30, 2020.

Requires DPI to establish the Smart School Bus Safety Pilot Program (Program), beginning no later than November 23, 2020, and ending on or before January 1, 2024, to transform and improve the transportation of public school students through technology in response to the COVID-19 pandemic. Specifies that nothing in this subsection allows the expenditure of funds from the Coronavirus Relief Fund past December 30, 2020. Requires participating local school administrative units (specified as Mount Airy City School) to identify and contract with qualifying vendors to provide technology and services for school buses. Allows DPI to authorize one replacement local school administrative unit to participate in the Program, if Mount Airy City Schools elects not to participate. Sets out 11 minimum requirements for the technology and services provided, including that it enable employee time tracking, student ridership tracking, and contact tracing in the event of a COVID-19 infection, enable GPS tracking of school buses, communicate ridership information to the student information management system, and allow parents or legal guardians to access applicable information. Sets out additional requirement for the use of busses designed for the transportation of children with disabilities. Specifies that all hardware becomes the property of the participating unit at the conclusion of the Program. Requires DPI to report on specified information to the specified NCGA committees and division by November 1 and March 1 of each year the Program is in effect.

Requires the Department of Information Technology (Department), from the funds appropriated in this act, to provide a special supplementary grant process to accelerate the provision of broadband access through the Growing Rural Economies with Access to Technology grant program. Except as noted here, the grant program requirements are the same as those established in Section 1.2 of the previous edition of this act. Requires grants may be awarded for applications submitted on or before October 23, 2020 (was, on or before September 15, 2020). Requires applications to be posted by October 28, 2020, and that awards begin being issued no later than November 9, 2020. Allows the Department to establish a final schedule and process for the special supplementary grant process. Reduces the 30-day period for posting of applications on the Department's Web site to ten calendar days (was, 15 business days) and requires protest submissions to be submitted within the 10-day period. Amends the definition of eligible economically distressed county to specify that counties with total employment of 500,000 or more, as of January 1, 2020, as measured pursuant to GS 143B-437.52(c)(3), are not eligible. Amends the term eligible project to now provide that an eligible project is as defined in GS 143B-1373(a)(6), except that a project is limited to those project areas where no more than an incidental number of households or businesses, not to exceed 10% of the total households or businesses (was, households only) within the boundaries of the project area submitted by the applicant, may have terrestrially deployed Internet access service with transmission speeds greater than 10 Mbps download and 1 Mbps upload (additionally, no longer includes at least 90% of households in the project area presently without internet access service with transmission speeds of at least 10 Mbps download and at least 1 Mbps upload). Makes conforming changes throughout to refer to unserved household or business. Requires a grant recipient receiving the initial lump sum disbursement to provide evidence satisfactory to the  Office that the recipient is financially solvent and has provided all required documentation to the Office for any prior GREAT grant application or award and an attestation that matching funds required pursuant to GS 143B-1373(j) are available at the time the agreement is executed (was, provide evidence satisfactory to the Office that the recipient is financially solvent and has been providing broadband service in this State for at least two years and an attestation to assure that the project will be completed pursuant to the agreement). Adds that the Office may cancel an agreement and the grant recipient must forfeit the amount of the grant if it fails to perform, in material respect, the obligations established in the agreement. Sets out conditions under which the Office may cancel an agreement for failure to perform. Adds that the amount of appropriated funds the Department may use for administration of the program is reduced to 0.5%. Makes additional clarifying changes.

Sets out NCGA findings. Requires that the $300,000 allocated to DSS in this act be used to establish a student health collaborative pilot program allowing a local education agency (LEA) to collaborate with the county department of social services to assist students with their mental and physical well-being while in a public school setting in response to the COVID-19 pandemic. Require DSS to collaborate with the State Board of Education and DPI in selecting at least one LEA to participate in the program upon providing the required local match. Specifies that this subsection does not allow the expenditure of funds from the Coronavirus Relief Fund past December 30, 2020. Requires DSS to submit a progress report in six months to the specified NCGA committees, containing the specified information.

Section 1.4

Amends GS 105-153.5 to allow taxpayers to deduct from gross income, the amount granted to the taxpayer under the Extra Credit grant program. Expires for taxable years beginning on or after January 1, 2021.

Section 1.4A

Amends Section 4.2A of SL 2020-4, as amended, by adding to the NCGA’s findings that seafood processors lack capacity to meet increased and altered consumer demand for seafood products due to COVID-19 related changes in the market for seafood and seafood products. Amends other findings to provide that financial assistance to these processors is necessary to reduce disruptions in the supply chain for fresh meat and seafood (was, fresh meat). Expands upon the capacity enhancement grant program to allow grants to also be given to seafood processing facilities (was, only meat processing facilities). Makes conforming changes. Removes eligibility for catfish aquaculture operations.

Section 1.5

Amends Section 4.2B of SL 2020-4, as amended, by increasing the total of all funds granted under the COVID-19 Job Retention Program from $15 million to $60.5 million. Expands the definition of a nonprofit under the program to also include an entity exempt from income tax under GS 105-130.11(a)(4).

Adds the following provisions. Provide that if the Economic Investment Committee determines that the total amount of grants requested from the applications filed on or before September 1, 2020 do not exceed the maximum amount of funds available, then the Job Retention Grant Program is extended for an additional round of applications. Sets out limitations on the amount of funds granted in Round II, sets out eligibility requirements for business and nonprofits under Round II, and sets application deadlines. Directs the Office of Historically Underutilized Businesses to inform and educate minority-owned businesses that may be eligible to apply for the grants provided by this Program as soon as practicable.

Section 1.6

Amends the provisions governing Golden LEAF’s grants for emergency loans to assist small business with business needs during periods of economic hardship occasioned by the COVID-19 pandemic as follows. Require lenders to prioritize loans for establishments with 150 (was, 100) or fewer full-time equivalent employees. Limits the term of the loan to 120 (was, 66) months. Increases the maximum loan amount to $250,000 (was, $50,000). Defines a triggering event, upon which loan repayment commences, as one that occurs 18 months (was, six months) following the closing of a loan made under the program. Requires that the awarding of new loans using State funds appropriated in this section cease on the latest date allowable under applicable federal law (was, cease upon six months following the date the State of Emergency ends). Amends the definition of net loan funds to also require when calculating the total loan fund allocation, the deduction of expenses incurred to recapture the loan funds. Requires that on the date that the authority to award new loans using state funds ceases (was, six months following the date the State of Emergency eds), Golden LEAF must remit the net loan funds that have been received, to be deposited into the Coronoavirus Relief Reserve.

Section 1.6A

Amends GS 96-14.2 (concerning the calculation of the unemployment benefit amount) by increasing the weekly benefit amount calculated under the statute by $50, payable for weeks beginning on or after September 5, 2020. Specifies that the increased benefit amount expires and will not be paid for weeks (1) beginning on or after December 26, 2020, or (2) immediately following the week that fully expends the amount allocated by the NCGA for this purpose under Section 3.3(75) of SL 2020-4, as amended, whichever occurs first.

Section 1.7

Allows State departments, institutions, and agencies subject to Article 3 (Purchases and Contracts) of GS Chapter 143 to obtain necessary supplies, materials, equipment, printing, or services to address the COVID-19 pandemic in the open market, without the authorization or approval of the Secretary of Administration. Requires a report on COVID-19 expenditures be made a matter of record promptly after the expenditures have been made. Also requires that the report also be made promptly thereafter to the Division of Purchase and Contract if the expenditure exceeds the benchmark established under GS 143-53.1. Applies to all contracts entered into on or after the date this section becomes law and expires on December 30, 2020.

Section 1.8

States the NCGA’s intent, if additional federal relief and recovery funds related to the COVID-19 pandemic are made available through subsequent federal legislation, and the following uses are permitted, to: (1) appropriate $300 million in nonrecurring funds made available by the federal legislation to the Department of Transportation to replace lost revenue due to the COVID-19 pandemic; (2) appropriate $31.5 million in nonrecurring funds made available by the federal legislation to the State Capital and Infrastructure Fund to fund the Business School at UNC-Chapel Hill, the Nursing School Renovation at UNC-Chapel Hill, the STEM Building at North Carolina State University, and repairs and renovations in accordance with GS 143C-8-13. Repeals Section 2 of SL 2020-81, provided that if funds are deposited pursuant to Section 3.2 of House Bill 1023, the State Controller was required to transfer $31,500,000 in nonrecurring funds for 2020-21 from the General Fund to the State Capital and Infrastructure Fund, to be allocated in specified amounts for project codes UNC/CH20-1, UNC/CH20-2, UNC/NCS20-1, and R&R20-1.

Section 1.9

Sets out NCGA findings and related purposes. Allows the North Carolina Pandemic Recovery Office (NCPRO), in consultation with the Director of the Budget, to reallocate Coronavirus Relief Funds appropriated by this act or any of the acts listed in Section 4.2 of this act under the following conditions: (1) the appropriated funds are unexpended on November 20, 2020; (2) there is not a reasonable expectation that the funds will be expended before the deadline established by applicable federal law or guidance; (3) the reallocation is made to support one or more COVID-19-related activities 38 authorized and receiving appropriations under this act or one of the acts listed in Section 4.2 of this act, prohibits reallocated funds from being used for any new activity, purpose, or program; and (4) to the extent that funds reallocated pursuant to this section are unappropriated, including interest accrual exceeding what is anticipated in this act, those funds are hereby appropriated and available for use pursuant to this section. Requires OSBM to report weekly, beginning November 30, 2020, to the Fiscal Research Division on the reallocations.

Part II.

Section 2.1

Requires the State Controller to establish an Earthquake Disaster Recovery Reserve in the State General Fund to maintain funds reserved for disaster recovery in this Part. Funds are to be transferred to the Earthquake Disaster Recovery Fund only as needed to meet the appropriations set out in this Part or other related NCGA acts and only upon request by the Director of the Budget.

Section 2.2

Creates the Earthquake Disaster Recovery Fund to provide necessary and appropriate relief and assistance from the effects of the M5.1 earthquake that occurred on August 9, 2020 in Alleghany County. Specifies that funds are to be drawn from the Fund only as needed upon justification by a State agency as evidence of the need for funds is determined for earthquake recovery efforts in Alleghany County. Sets out provisions governing unexpended funds. Requires that the funds be spent only for earthquake relief and recovery efforts in Alleghany County, and in any counties that are part of the emergency area set forth in any gubernatorial executive order, or declared as a major disaster by the President as a result of the earthquake.

Section 2.3 and 2.4

Requires the State Controller to transfer $24 million for 2020-21 from the Savings Reserve to the Earthquake Disaster Recovery Reserve and to transfer the funds to the Earthquake Disaster Recovery Fund. Appropriates those funds to the Department of Public Safety, Division of Emergency Management to be allocated as follows: (1) $600,013 to Alleghany County for repairs and renovations for the county courthouse; (2) $160,000 to the Bruce Wayne Osbourne Post No. 7034, Veterans of Foreign Wars of the United States, to repair damage to the building in Alleghany County; and (3) the remainder of the funds are to be used for short-term housing, short-term rental assistance, demolition for reconstruction, home reconstruction, septic system reconstruction, home repair reimbursements, county and municipal water and sewer repair, other county assistance, other earthquake-related recovery efforts, State and county project management administration, and State match for federal disaster assistance programs (prohibits these funds from being used to provide grants to for profit businesses through a disaster recovery grant program).

Section 2.5

Requires a local political subdivision of the State, a State agency, a State department, or a non-State entity receiving funds from the Earthquake Disaster Recovery Fund to use best efforts and take all reasonable steps to obtain alternative funds that cover the losses or needs for which the State funds are provided. Recipients receiving alternative funds must remit the funds to the State agency from which the State funds were received; the funds must then be transferred to the Earthquake Disaster Recovery Fund.

Section 2.6

Requires the State Controller to transfer $27,796,610 from the Savings Reserve to the Hurricane Florence Disaster Recovery Reserve; transfers those funds to the Hurricane Florence Disaster Recovery Fund. Allocates $300,000 to OSBM for a grant to Bladenboro for the demolition, reconstruction, and repair of public infrastructure and public buildings damaged by Hurricane Florence. Requires that $13,203,390 be transferred from the Savings Reserve to the State Emergency Response and Disaster Relief Fund and appropriates those funds to the Division of Emergency Management, with $10,423,729 to provide State match for federal disaster assistance programs related to Hurricane Matthew, and  $2,779,661 to provide State match for federal disaster assistance programs related to Hurricane Dorian. Reallocates and appropriates up to $3,500,000 from the cash balance of the State Emergency Response and Disaster Relief Fund to the Division of Emergency Management to provide State match for federal disaster assistance programs related to Hurricane Isaias.

Section 2.7

Appropriates funds received on or after September 1, 2020, under federal disaster assistance programs for State disasters as a result of Hurricanes Florence, Dorian, Matthew, or Isaias, or the earthquake described in Section 2.2(a) of this act, in the amounts provided in the notifications of award. Requires reporting all notifications of award to the specified NCGA committee and division.

Section 2.8

Requires the Division of Emergency Management, beginning January 1, 2021, to report quarterly to the specified NCGA committees and division on the implementation of Section 2.4 and Section 2.6(e), with a final report due January 1, 2022. Specifies information to be included in each report.

Part III

Section 3.1

Prohibits the State Board of Education from reducing allocations to local school units due to a discrepancy between actual and anticipated daily membership.

Section 3.1A

Rewrites Sec. 4(b) of SL 2020-45 to continue use of membership amounts from the 2019-2020 school year.

Section 3.2

Increases authorized enrollment for two virtual charter schools, the NC Cyber Academy (by 1,000 students) and NC Virtual Academy (by 2,800 students) and requires interim (by March 15, 2021) and final reports (by November 15, 2021) to the specified NCGA committee on the impact of increases.

Section 3.3

Rewrites GS 115C-562.2(a) to eliminate 40% cap on use of residual funds in the Opportunity Scholarship Grant Program for kindergarten and first grade scholarships for 2020-2021 school year applicants who have not been awarded funds as of the effective date of the bill. Rewrites GS 115C-562.1(3)b to raise the income eligibility threshold for the grant program to 150% (was, 133%) of the federal free lunch program threshold, starting in spring semester of the 2020-2021 school year.

Section 3.4

Transfers $1,000,000, by October 1, 2020, from the School Bus Replacement Fund to the UNC System Office and appropriates these funds to the UNC BOG to establish the NC Patriot Star Family Scholarship Program, directing $500,000 to the Patriot Foundation, a nonprofit corporation, and $500,000 to the Marine Corps Scholarship Founding, Inc. Directs these recipients to provide scholarships to eligible children and spouses of certain veterans and currently service members of the armed forces. Sets out residency and other eligibility requirements. Directs administering nonprofits to establish criteria, procedures and permissible uses of scholarship funds. Requires reports to the specified NCGA committee and division by April 1, 2021 on the program.

Section 3.5

Directs the UNC BOG to allocate funds for up to 100 resident full-time students enrolled in Comprehensive Transition Programs, under the Higher Education Opportunity Act of 2008, 20 U.S.C. secs. 1140f-1140i, at constituent institutions on the same basis as full-time students in the UNC system.

Section 3.6

Amends GS 116-11(13b) to allow the UNC BOG to authorize the President of UNC to designate legal counsel, including private counsel, in the President’s discretion, in addition to or in lieu of the Attorney General.

Section 3.7

Rewrites Sec. 2.3(b) of SL 2019-242 to clarify the amount of funds ($130,000,000 or greater) to be returned by DHHS to the State Treasurer from State-owned and operated hospitals from revenue for indigent and non-indigent care services. Effective July 1, 2020, for the 2020-2021 fiscal year only.

Section 3.7A

Enacts new GS 110-98.5 to provide care for school-age children during a state of emergency at a remote learning facility. Authorizes a community-based organization registered with the DPI, such as a parks and recreation program, YMCA or Boys and Girls Club, to provide such care. Removes limitations on maximum screen time for children three years of age and older during care giving. Excludes such care from “child care” as defined in GS 110-86. Also amends GS 110-86 to exclude arrangements between a group of parents to provide instruction in the home of one of the group.

Section 3.7B

Amends SL 2020-88 to clarify that funds transferred for the NC Families Accessing Services Through Technology (NC FAST) system are appropriated for purposes set out in Sec. 2.1(a) of SL 2020-88. Effective May 4, 2020, clarifies that that statute being amended by Section 3E.1(b) of SL 2020-3 is GS 90-414.4(a2).

Section 3.7C

Amends GS 131D-2.4 to provide definitions of the terms “person,” “owner,” “affiliate” and “principal” in determining effect of prior violations and compliance history on new and renewal adult care home licenses. Exempts provisional licenses and suspensions of admissions for which an appeal is pending from consideration in license renewal. Directs the Medical Care Commission to amend and update 10A NCAC 13F.0201 and any other affected rule accordingly. Applies to applications for new and renewal licenses on or after the effective date, and to licenses downgraded within the six months prior to the effective date.

Section 3.8

Provides flexibility for use of funds from the Hurricane Florence Disaster Recovery Fund for the renovation or expansion of the aquarium at Fort Fisher.

Section 3.9

Redirects unencumbered and unspent funds allocated to the NC Forest Service by SL 2016-124 for either a regional headquarters and training facility or for operations, maintenance and repairs at the NC State Fair and the Western NC Agriculture Center.

Section 3.11

Transfers $1,948,121 to the Community Living Housing Fund from the Transitions to Community Living Fund within the NC Housing Finance Agency pursuant to GS 122E-3.1(b). Appropriates $10,472,993 in nonrecurring funds from the Community Living Housing Fund to the NC Housing Finance Agency for fiscal year 2020-2021 to be used as provided in GS 122E-3.1(c).

Section 3.12

Appropriates $12,500,000 in nonrecurring funds from the Collections Assistance Fee Special Fund to the Department of Revenue for fiscal year 2020-2021 for tax systems operations and maintenance upgrades.

Section 3.13

Amends Section 9(a) of SL 2020-81 to direct the Department of Information Technology and OSBM to use existing resources to ensure that funding and positions supported by the Information Technology Fund are not adversely affected by the reduction in funding. Requires report to the specified NCGA commissions and division at least 15 days before making transfers from or reductions to funding or positions for the Government Data Analytics Center.

Section 3.14

Includes the provisions contained in Part II of the previous edition with the following changes. Amends GS 143B-1373 as follows. Adds and defines the term business. Amends the term eligible project by adding that to qualify for an award, no more than an incidental number of households or businesses (was, households only), not to exceed 10% of the total households or businesses within the boundaries of the project area submitted by the applicant, may have terrestrially deployed Internet access service with transmission speeds greater than 10 Mbps download and 1 Mbps upload (deletes eligibility of projects containing at least 90% of households in the project area presently without internet access service with transmission speeds of at least 10 Mbps download and at least 1 Mbps upload). Makes conforming changes. Require applications to include an illustration or description of the area to be served, identifying the number homes and business (deletes, community anchor points, agricultural operations, or agricultural processing facilities) that will have access to broadband as a result of the project. Adds that an amended application may be rejected if the amended application results in a lower application score to the extent that the lower score would have impacted the ranking of the application in the initial scoring process. Amends the scoring for projects providing broadband to unserved businesses by removing reference to projects proposing to serve an agricultural operation or agricultural processing facility. Makes conforming changes to the reporting requirements. Amends GS 143B-1373(l), effective July 1, 2019, to allow the Office to cancel an agreement for failure to perform if the grant recipient's actual performance would have reduced the application score so that the lower score would have impacted the ranking of the application in the initial scoring process. Adds that the Office may conduct a special application period within 60 days of the cancellation of the agreement for failure to perform; requires that the new project be substantially similar in location and scope to the project described in the cancelled agreement.

Section 3.15-3.18

Extends by five months the Motor Vehicle (DMV) credential and drivers license extensions in SL 2020-3, Section 4.7(b) for those that expire on or after March 1, 2020, and before the date 30 days after the date the Governor rescinds Executive Order No. 116 or issues another Executive Order lifting DMV restrictions. Authorizes DMV to waive requirements for medical exams for commercial drivers license and commercial learner’s permit holders, consistent with federal waivers. Allows DMV extensions of medical waivers for commercial drivers’ licenses beyond limitation on duration of waivers in GS 20-37.13A(b). Effective retroactively to August 1, 2020. Requires DMV to report to the specified NCGA committee on or before September 15, 2020 regarding changes to improve operations and decreased wait times; requires a report by November 1, 2020, on the effects of the changes. Makes a technical change to SL 2002-91.

Section 3.19

Permits a licensed soil scientist to evaluate, inspect and approve on-site wastewater projects without further certification from the NC On-Site Wastewater Contractors and Inspectors Board, until the earlier of December 31, 2021 or 90 days after Executive Order No. 116 is rescinded.

Section 3.20

Authorizes State agencies to delay the collection of fees, fines or late payments; delay the renewal dates of permits, licenses or other certifications; and delay or modify any educational or exam requirements due to the impacts of COVID-19. Requires each State agency to make an interim and a final report to the specified NCGA committees and OSBM on specific efforts to give this regulatory flexibility. Authorizes emergency rules to implement these delays, in accordance with GS 150B-21.1A, with rules expiring 30 days after Executive Order No. 116 is rescinded or Dec. 31, 2021, whichever is earlier. Effective retroactively to August 1, 2020.

Section 3.21

Extends for 120 days the expiration date of local development approvals that are current and valid at any point during the period from September 2, 2020 until 30 days after Executive Order No. 116 is rescinded or December 31, 2021, whichever is earlier. Includes erosion and sedimentation control plan approvals, building permits, certificates of appropriateness from city preservation commissions, and other local approvals regarding land development. Does not cover permits or approvals the term or duration of which is determined by federal law. Includes other exclusions and conditions.

Part IV.

Section 4.1

Reenacts the provisions of the State Budget Act.

Section 4.2

Provides that the provisions of any legislation enacted during any session of the 2019 General Assembly expressly appropriating funds from the Coronavirus Relief Fund to an agency, a department, or an institution covered under this act, remain in effect, except where expressly repealed or amended by this act or any of the 11 specified acts.

Section 4.3

Provides that except where expressly repealed or amended by this act, the provisions of any other legislation enacted during any session of the 2019 General Assembly expressly appropriating funds to an agency, a department, or an institution covered under this act, remains in effect.

Section 4.4

Provides for the effect of the act’s headings.

Section 4.5

Includes a severability clause.

Section 4.6

Effective when the act becomes law, except as otherwise provided.

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

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