Bill Summary for H 1012 (2025-2026)

Printer-friendly: Click to view

Summary date: 

Jun 23 2025

Bill Information:

View NCGA Bill Details(link is external)2025-2026 Session
House Bill 1012 (Public) Filed Wednesday, May 21, 2025
AN ACT TO PROVIDE ADDITIONAL APPROPRIATIONS AND EXTEND REGULATORY FLEXIBILITY FOR COMMUNITIES AND CITIZENS IMPACTED BY HURRICANE HELENE AND WILDFIRES.
Intro. by Appropriations.

View: All Summaries for BillTracking:

Bill summary

Senate committee substitute to the 2nd edition makes the following changes.

Amends the act’s long title.

Part II.

Subpart II-A

Requires the State Controller to reserve to the Hurricane Helene Disaster Recovery Fund funds transferred from the following for 2025-26: (1) $104,964,059 from the State Emergency Response and Disaster Relief Fund, (2) $45,469,983 from the Federal Infrastructure Match Reserve, (3) $428,526,115 from the Medicaid Contingency Reserve, and (4) $55,127,214 from the Information Technology Reserve.

Identifies and transfers to the Helene Fund from other reserves $634,086,371 that is currently underutilized or underutilized and uses a portion of those funds for multiple agencies, as provided in this act. Specifies that these additional reservations, along with the reallocation of underutilized funds, provide for a total of $700 million in additional availability to the Helene Fund.

Removes the requirement that NCInnovation transfer back to the State, after consultation with, and in conformity with direction received from, the State Controller, $500 million, and related provisions.

Increases that amount that the State Controller must transfer to the Helene Fund from $69,350,000 to $65,913,629 for 2025-26 and removes the amount that was to be transferred for 2026-27. Amends where those funds are to come from by adding in an allocation of $1,163,629 from the Community Colleges System Office previously allocated for a tuition support program. Makes additional clarifying and technical changes. Requires that of the funds appropriated for that tuition grant program, $2,473,971 must be used instead for community colleges located in the affected area that experienced enrollment declines from the 2023-24 academic year to the 2024-25 academic year.

Increases the amount that is to be appropriated from the Helene Fund from $464,750,000 to $465 million and now appropriates those funds to the following: (1) $10 million to the Department of Commerce, to be used in the specified amounts for Visit NC to promote Western North Carolina tourism, and for operational expenses and staffing for the Division of Community Revitalization; (2) $23 million to the Department of Agriculture to be used in the specified amounts for the North Carolina Forest Service for wildfire assets and preparedness, and for the North Carolina Agricultural Manufacturing and Processing Initiative for grants for atmosphere-controlled projects in the affected areas; (3) $13 million to the Department of Environmental Quality to be used in the specified amounts for the Dam Safety Grant Fund for the repair, modification, or removal of dams damaged by Hurricane Helene, and for landslide hazard mapping in the affected area; (4) $20 million to the Department of Natural and Cultural Resources for the Parks and Recreation Trust Fund for eligible uses in the affected area, to be used as specified; (5) $8 million to the Department of Public Instruction to disburse as a competitive grant program to public school units to repair public school infrastructure or buildings damaged by Hurricane Helene in the affected area (requires units to have been denied insurance coverage and federal aid for the infrastructure damaged before receiving funds and caps grants at $500,000); (6) $221 million to the Division of Emergency Management of the Department of Public Safety (NCEM) to be used in the specified amounts for the Bridge Repair Program including reimbursement to persons and HOAs with qualifying projects, for nonfederal share for FEMA disaster recovery programs, to local governments in the affected area for unmet needs, for the Disaster Relief and Mitigation Fund for the Hurricane Helene Flood Mitigation Grant Program, for grants to any member organization of Volunteer Organizations Active in Disaster actively involved in actual and ongoing repair and reconstruction projects (includes reporting requirements), and for the Aerial Asset Accessibility Grant Program; (7)  $15 million to the Office of the State Fire Marshal for grants of up to $500,000 to small and volunteer fire departments and rescue squads in counties in the affected area that qualify for Individual and Public Assistance Categories C through G to cover expenses incurred due to Hurricane Helene to purchase equipment or to make capital improvements to assist with readiness for future emergency response; (8) $38 million to OSBM to be allocated in specified amounts to the Town of Canton, to the Hurricane Helene Local Government Capital Grant Program, to the NC League of Municipalities, the NC Association of County Commissioners, and the NC Association of Regional Councils of Government for grants for technical assistance to local governments in the affected area with specified issues, and to the MANNA Food Bank, Inc.; (9) $1 million to the NC School for the Deaf to repair, replace, renovate, or construct buildings or infrastructure damaged by Hurricane Helene; (10) $1 million to the Department of Transportation (DOT), Rail Division, to Great Smoky Mountains Railroad, LLC, for recovery and repair of infrastructure damaged by Hurricane Helene; (11) $10 million to the Office of the Governor for the Governor's Recovery Office for Western NC; (12) $100 million to the Department of State Treasurer for cashflow loans to local governments in the affected area, consistent with the requirements of Section 4E.5 of SL 2024-53, as amended; (13) $5 million to the UNC Board of Governors to disburse grants to schools to repair, replace, renovate, or construct buildings or infrastructure damaged by Hurricane Helene.

Reduces by $5 million recurring in each year of the 2025-27 fiscal biennium the funds appropriated to the Future Building Reserves that have been transferred to the Department of Commerce, Division of Community Revitalization. Reduces by $5 million in recurring funds for each year of the fiscal year of the 2025-27 fiscal biennium the funds appropriated to the future Building Reserves that have been transferred to G.R.O.W. NC. Repeals these provisions if H 125 becomes law.

Reallocates the following previously appropriated funds to the DOT to now be used by DOT for cash flow and federal matching purposes for activities related to Helene recovery, as described: (1) $30 million from DMV Tech Modernization; (2) $28,161,418 from Unexpended Dorian Funds; (3) $50 million for State Aid to Municipalities (for the 2025-27 biennium); (4) $22.5 million for bridge preservation (for the 2025-27 biennium); (5) $22.5 million for pavement preservation (for the 2025-27 biennium); and (6) $21 million for the FRRCSI Program (for the 2025-27 biennium). Also allows DOT to use up to $270 million in Credit Balance Funds for those purposes. Requires DOT to use all future Credit Balance Funds for activities related to recovery from Hurricane Helene until recovery is completed. Sets out provisions governing the management of these funds and reporting requirements.

Removes the provision that required for each year of the 2025-27 fiscal biennium any State-owned railroad company that has trackage in more than two counties to issue an annual cash dividend to the State. Amends GS 124-18, which requires any State-owned railroad that has trackage in more than two counties to issue an annual cash dividend to the State by adding that the dividend must be deposited in the Freight Rail & Rail Crossing Safety Improvement Fund (FRRCSI) within the Highway Fund. Appropriates $4.6 million for 2025-27 from funds deposited according to GS 124-18 to DOT.

Specifies that for the 2025-27 biennium: (1) except as provided in Section 2A.4(b) of this act, DOT must not reduce the funds allocated to the State Aid to Municipalities (Powell Bill funds) and (2) Powell Bill funds must only be allocated to municipalities with a population of less than 150,000.

Subpart II-B

Removes the Hurricane Helene Economic Recovery Grant Program.

Removes the Farm Infrastructure Disaster Recovery Program.

Subpart II-D

Amends the purpose of the Aerial Asset Accessibility Grant Program so that grants can only be given to local airports, no longer allowing awarding grants to airfields. Changes the maximum grant amount from $5 million to $3 million.

Removes provisions related to the development and creation of a disaster relief portal.

Part III.

Requires that for the for the 2025-27 fiscal biennium, the following programs and funds, representing over $750 million in the base budget from competitive grant programs over the biennium, prioritize applicants from counties that (1) were designated, in whole or in part, by the US Department of Housing and Urban Development as the most impacted and distressed counties from Hurricane Helene and (2) have a population of 300,000 or fewer based upon the 2023 Certified County Population Estimates from the State Demographer: (1) Needs-Based Public School Capital Fund, (2) Community Health Grant Program, (3) State-Designated Rural Health Centers Support Grant Program and Rural Health Capital Grants Program, (4) Agricultural Water Resources Assistance Program, (5) Utility Account, (6) Rural Engagement & Investment Program, (7) state and local projects funded from the Parks and Recreation Trust Fund, (8) North Carolina Land and Water Fund, (9) grants administered by the North Carolina Arts Council, and (10) grants awarded by the State Water Infrastructure Authority from the State Drinking Water and Wastewater Reserves. Sets out information that applicants seeking funds form the above program must provide.

Amends the appropriations to the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund by removing district health departments from the entities eligible to apply for a loan or grant from funds appropriated to the Clean Water State Revolving Fund for decentralized wastewater treatment systems.

Requires the State Controller to transfer interest earned as of June 30, 2025, from the Needs-Based Public School Capital Fund established in Article 38B of GS Chapter 115C, estimated at $39.6 million, to the Department of Public Instruction for Capital Recovery Funds for the Public School Facilities Program.

Amends GS 166A-90 to allow the Governor to reallocate on a nonrecurring basis (was, just reallocate) other funds as may reasonably be available within the appropriations of the various departments when: (1) the severity and magnitude of the emergency so requires; (2) contingency and emergency funds are insufficient or inappropriate; (3) a state of emergency has been declared; and (4) funds in the State Emergency Response and Disaster Relief Fund are insufficient.

Extends the expiration of tree ordinance restrictions under SL 2024-57 until October 1, 2025.

Deletes the provision requiring State agencies and local governments to use the United States Army Corps of Engineers (USACE) to remove and clear debris and other detritus from lands and waterways from Hurricane Helene in the affected area prior to using contractors hired by the State of North Carolina unless the USACE is not able to service the area, including in an expeditious or efficient manner, then the State agency or unit of local government may use the State or private contractors.

Deletes the extension of the term of Water Infrastructure Loans under Section 4C.7(j) of SL 2024-53.