Legislature Approves and Governor Signs COVID-19 Response Legislation | Eastern North Carolina Now

Press Release:

    On Monday, May 4th, Governor Cooper signed two bills passed by the General Assembly, providing regulatory and financial relief in light of the COVID-19 pandemic. Senate Bill 704 contains regulatory provisions, while House Bill 1043 allocates federal dollars sent to North Carolina through the federal CARES Act and other federal COVID-19 relief acts. Members in both the House and Senate negotiated the funding package that allocates approximately $1.57 billion of the nearly $3.5 billion received from the federal government under the Coronavirus Relief Fund (CRF) in the federal CARES Act. House Bill 1043 also includes the state's allocations for $1.235 billion from federal grants in addition to the CRF monies.

    The legislation directs the Office of State Budget and Management to establish a temporary Pandemic Recovery Office to oversee and coordinate the distribution of relief funds and provide technical assistance to agencies and local governments to ensure proper reporting and accounting.

    Throughout negotiations last week, legislative leadership repeatedly stated their intent to return to Raleigh in the coming weeks to take up additional bills related to spending additional CRF funds and to make other regulatory changes.

    As the General Assembly and Congress continue to negotiate relief and additional legislation, NCACC will advocate for flexibility in dedicating funds to lost revenue, and a distribution formula that highlights counties' role in response to the COVID-19 pandemic.

    See below or click HERE for highlights of both packages.

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House Bill 1043

    House Bill 1043, 2020 COVID-19 Recovery Act contains the following fund allocations of interest to counties:

• Allocates $150 million to the 97 counties ineligible to receive direct funding from the CARES Act. Each county receives a base funding amount of $250,000, with the remainder distributed on a per capita basis. Counties may allocate a portion of their allotment to municipalities within the county, provided the transfer meets the requirements of the CARES Act and corresponding U.S. Treasury guidance. Requires quarterly reporting to OSBM, beginning Oct. 1, 2020, on the use of funds. Unspent and misspent funds are subject to federal recoupment. Counties and municipalities are subject to clawback or other state measures for misuse. Additionally, "any local government officer, official, or employee who violates this section shall be subject to a civil action by the State and held personally liable to reimburse the State."
• Places $150 million in a Reserve Fund to be appropriated to local governments IF local governments experience a revenue shortfall from COVID-19 AND the federal government amends the CARES Act to allow CRF money to be spent on revenue replacement.
• Allocates $50 million for supplies and equipment to be divided between the NC Healthcare Foundation, NC Senior Living Association, NC Health Care Facilities Association, NC Medical Society and the NC Division of Emergency Management.
• Allocates $145 million to the NC Dept. of Health and Human Services for COVID-19 related response including:
  • Rural and underserved community health care needs including grants, Medicaid assistance and other needs
  • Support for local health departments
  • Behavioral health support
  • Testing and contact tracing
  • Childcare and food bank support, and
  • Facilities for State-County special assistance programs
• Allocates $125 million to Golden LEAF for small business loan assistance grants.
• Allocates $9 million to the NC Dept. of Information Technology for supplementary project funding for qualifying GREAT Grant programs.
• Allocates $44.4 million to the Board of Governors of the UNC System for increased costs related to the system's transition to online learning and other needs related to pandemic response.
• Allocates money to the NC Dept. of Public Instruction (DPI) in several areas:
  • $75 million for school nutrition services provided in response to COVID-19 in the School Lunch or Breakfast Programs from 3/16/20 through the end of the 2019-20 school year.
  • $70 million for public schools to provide a supplemental summer learning program.
  • $11 million for improving Internet connectivity for students through mobile Internet access points.
  • $30 million for computers or other electronic devices for use by public school students.
  • $5 million for public schools to provide computers or other electronic devices for school personnel.
  • $1 million to improve Internet connectivity for students by installing extended reach mobile Wi-Fi gateway router devices in school buses.
  • $4.5 million to establish a shared cybersecurity infrastructure and district cybersecurity monitoring and support.
  • $10 million for school health support personnel to provide physical and mental health support services for students in response to COVID-19, including remote services.
  • $1.488 million for public school units to provide remote instruction.
  • $3 million to provide non-digital remote instruction resources to students with limited connectivity.
• Allocates $25 million to the Community Colleges System Office for campuses to enhance online learning, cover expenses for resources and supports for faculty and staff, provide Small Business Center counselors, cover expenses for expanded IT demands, and provide sanitation and other expenses required for ongoing campus operations.
• Allocates $65 million to establish the Rural Hospitals Relief Fund for grants to critical access hospitals, $15 million to establish the Teaching Hospitals Relief Fund, and $15 million to establish the General Hospitals Relief Fund.

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Senate Bill 704

    Senate Bill 704, COVID-19 Recovery Act, contains policy provisions in response to COVID-19. Sections of specific interest to counties include:

• Directs public school units to develop Remote Instruction Plans for 2020-21 and grants local school boards calendar flexibility for the 2020-21 school year by allowing for the adoption of a school calendar with an opening date of no earlier than August 17, 2020 (a week earlier than previously allowed). (Section 2.11)
• Grants various waivers and modifications for public schools and students related to:
  • Testing and graduation requirements;
  • School performance and accountability; and
  • Teacher and school administrator evaluations, performance, and licensure, as well as recruitment, retention, and preparation programs.
• Directs DMV to extend for five months the inspection and tax due dates for motor vehicle tags that expire between March 1 and July 31, 2020. Clarifies that the next renewal date remains the original date previously set by law, notwithstanding this one-time extension. (Section 4.7)
• Authorizes each register of deeds to issue a marriage license via remote audio-video communication provided the register of deeds can positively identify each applicant. Applies to licenses issued between Feb. 1, 2020 and Aug. 1, 2020 and makes these licenses eligible for 120 (rather than 60) days. (Section 4.13)
• Permits specific release of communicable disease health information by the NC Dept. of Health and Human Services or a local health department to a law enforcement official under specified and limited circumstances. (Section 4.17)
• Authorizes counties and cities, as well as private companies providing yard waste collection services, to request a waiver from DEQ to dispose yard waste in a landfill between March 10 and August 1, 2020. (Section 4.20)
• Makes temporary changes to the retiree separation requirement and earnings cap for retirees to return in a position needed in response to COVID-19. (Section 4.23)
• Permits local government clerks to post the budget on the local government's website (modifies the public inspection requirement) through August 1, 2020. (Section 4.27)
• Authorizes the Local Government Commission to set the amount of money for daily deposits, and allow local governments to make fewer than daily, but at least weekly, deposits. (Section 4.28)
• Requires county finance officers, among other units, to submit financial information to the Local Government Commission about the financial impact of COVID-19 on the county by Feb. 15, 2021. The financial information must include monthly data from July 1, 2019 through December 31, 2020 on a list of items including utility payments, tax and other revenue reductions, and other information requested by LGC. (Section 4.29)
• Reinstates special obligation bond authority, codified in GS Chapter 159, which was inadvertently repealed last session. (Section 4.30)
• Sets out requirements for public bodies to hold remote meetings during a declared emergency, including closed sessions. Makes clear that no action conducted between March 10 and the effective date of the provision will be deemed invalid when the public body met electronically. (Section 4.31)
• Extends the effective date from Jan. 1, 2021, to Aug. 1, 2021, for which local development ordinances must be amended to comply with new consolidated G.S. Chapter 160D. (Section 4.33)
• Changes the reporting date for the General Statutes Commission report and recommendations on local government ordinances and North Carolina Administrative Code rules that criminalize conduct required by S.L. 2019-198 from May 1, 2020 to March 1, 2021. (Section 4.35)
• Extends for five months the expiration date of any development permit issued by a local government and valid between March 10 and April 28, 2020. (Section 4.40)
• Authorizes the NC Dept. of Emergency Management to use the regional Councils of Governments to assist with administering FEMA public and individual assistance funds on behalf of local governments. (Section 4.42)