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H200: 2019 Storm Recovery/Var. Budget Corrections. Latest Version

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2019

SESSION LAW 2019-250
HOUSE BILL 200

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.

The General Assembly of North Carolina enacts:

PART I. APPROPRIATIONS AND ALLOCATIONS
SECTION 1.1. State Match. – The State Controller shall transfer the sum of one
hundred twenty-one million five hundred eighty-five thousand five hundred ninety-four dollars
($121,585,594) from the Savings Reserve Account to the General Fund, and those funds are
hereby appropriated as follows:
(1) $70,812,336totheHurricaneFlorenceDisasterRecoveryFundcreatedinS.L.
2018-134 for the Department of Public Safety to be used to provide State

match for Hurricane Florence federal disaster assistance programs.
(2) $33,173,258 to the State Emergency Response and Disaster Relief Fund for
the Department of Public Safety, Division of EmergencyManagement to used
as follows:
a. $11,197,013 to provide State match for federal disaster assistance
programs related to Hurricane Matthew.

b. $4,176,245 to provide State match for federal disaster assistance
programs related to Hurricane Michael.
c. $17,800,000 to provide State match for federal disaster assistance
programs and funding for equivalent State assistance programs related
to Hurricane Dorian.
(3) $17,600,000 to the Department of Environmental Quality to match additional
federal funds for the Clean Water State Revolving Fund and the Drinking

Water State Revolving Fund.
SECTION 1.2. Other Disaster Relief and Resiliency Appropriations/Nonrecurring
Funds. – In addition to any other funds appropriated during the 2019-2020 fiscal year, there is
appropriated from the unappropriated balance in the General Fund the sum of fifty-nine million
fifty thousand dollars ($59,050,000) in nonrecurring funds for the 2019-2020 fiscal year to be
allocated as follows:
(1) $5,000,000 to the Office of State Budget and Management for the State

Emergency Response and Disaster Relief Fund to ensure that sufficient funds
are available to provide relief and assistance for Hurricane Dorian, recent
storms, and future emergencies, as authorized by G.S. 166A-19.42.
(2) $9,800,000 to the Department of Public Safety, Division of Emergency
Management to be used as follows:
a. $5,000,000 to expand flood mitigation studies.

*H200-v-5* b. $4,800,000 for water level and breach monitoring systems for 1,510 high
and intermediate risk dams.
(3) $15,000,000 to the Department of Public Safety, Office of Recovery and
Resiliency to be used as follows:
a. $10,000,000to provideflexiblelocal government loans to assist distressed
communities impacted by Hurricane Matthew, Hurricane Florence,
Hurricane Michael, or Hurricane Dorian. The Office shall enter into

agreements with local governments to ensure the proper use of the funds
and the return of the funds to the State once the local governments have
received federal reimbursement. Loans may be used for cash flow
assistance while awaiting federal reimbursement. NCORR shall operate
the program on a revolving loan fund basis to assist the maximum number
of local governments possible.
b. $5,000,000 to provide flexible local government grants to assist distressed

communities impacted by Hurricane Dorian. Grants may be used for
repairs, staff support and technical assistance, cash flow assistance, and
other related activities.
(4) $15,000,000 to the Office of State Budget and Management for the Golden
L.E.A.F. (Long-Term Economic Advancement Foundation), Inc., to provide
grants to governmental entities and organizations exempt from federal income

tax under section 501(c)(3) of the Internal Revenue Code. The funds may be
used to repair, replace, construct, or improve infrastructure or equipment
damaged as a result of Hurricane Matthew, Florence, Michael, or Dorian, as
well as to construct or improve infrastructure to support hazard mitigation.
For the purposes of this program, infrastructure includes nonresidential
buildings that serve the public, water, sewer, stormwater, and other publicly
owned assets. The Golden L.E.A.F. may also provide grants to 501(c)(3)

nonprofit organizations and established religious organizations to repair or
replace places of worship damaged or destroyed by Hurricane Florence.
The funds allocated to the Golden L.E.A.F. in this subdivision are not
subject to G.S. 143C-6-23(d).
(5) $5,000,000 to the Department of Agriculture and Consumer Services,
Division of Soil and Water Conservation for stream debris removal.
(6) $5,200,000 to Elizabeth City State University for repairs to academic and

residential buildings impacted by Hurricane Dorian.
(7) $1,700,000 to the Department of Public Instruction as a directed grant to Hyde
County for repairs to the Ocracoke School necessitated by Hurricane Dorian.
(8) $1,800,000 to the Office of State Budget and Management to provide a
directed grant to Hyde County for construction of a pump station and related
watershed restoration infrastructure for the Lake Mattamuskeet watershed.

(9) $50,000 to the Department of Environmental Quality for repair, restoration,
and related environmental disaster recovery activities at the Department's
Coastal Reserves.
(10) $500,000 to the Wildlife Resources Commission for two grant programs to be
administered by the Outdoor Heritage Advisory Council.
SECTION 1.3.(a) Other Disaster Relief and Resiliency Appropriations/Recurring
Funds. – In addition to any other funds appropriated during the 2019-2021 fiscal biennium, the

sum of one million eight hundred fifty-seven thousand eight hundred thirteen dollars
($1,857,813) in recurring funds is appropriated from the General Fund to the Department of
Public Safety for the 2019-2020 fiscal year and the sum of two million two hundred fifty-three

Page 2 Session Law 2019-250 House Bill 200thousand one hundred twenty-five dollars ($2,253,125) in recurring funds is appropriated for the
2020-2021 fiscal year to be allocated as follows:
(1) $250,000 in recurring funds in each year of the 2019-2021 fiscal biennium for
a grant to the United Way of North Carolina, a nonprofit organization, to
support operations of the NC 2-1-1 program.
(2) $107,813 in recurring funds in the 2019-2020 fiscal year allocated to the
Division of Emergency Management for three additional full-time equivalent

positions and $503,125 in recurring funds and seven full-time equivalent
positions in the 2020-2021 fiscal year. The positions shall be used to support
themanagement offederal grants andotherDivisionoperations. Thepositions
funded during the 2019-2020 fiscal year are effective January 1, 2020.
(3) $1,500,000 in recurring funds in each year of the 2019-2021 fiscal biennium
for the long-term service contract for software and service upgrades to the
Voice Interoperability Plan for Emergency Responders (VIPER) system.

SECTION 1.3.(b) Applicability and Contingency. – Section 2.1 of this act does not
apply to this section. If House Bill 966, 2019 Regular Session, becomes law, this section is
repealed.
SECTION 1.4. Rural Health Care Stabilization Fund Appropriation. – There is
appropriated from the General Fund to the Office of State Budget and Management the sum of
thirteenmillionthreehundredninety-seventhousanddollars($13,397,000)innonrecurringfunds

for the 2019-2020 fiscal year and the sum of six million six hundred three thousand dollars
($6,603,000) in nonrecurring funds for the 2020-2021 fiscal year to be used for the Rural Health
Care Stabilization Fund created in Part V of S.L. 2019-240. Sections 2.1 and 4.1 through 4.8 of
this act do not apply to this section. If House Bill 966, 2019 Regular Session, becomes law, this
section is repealed.

PART II. COUNTIES COVERED BY ACT

SECTION 2.1. Applicability. – Except as otherwise provided, Sections 1.1 and 1.2
of this act apply to the following North Carolina counties:
(1) For disaster relief and recovery related to Hurricane Matthew, those counties
identified in Part III of S.L. 2016-124.
(2) For disaster relief and recovery related to Hurricane Florence or Michael,
those counties identified in S.L. 2018-136 or S.L. 2019-3.
(3) Declared a major disaster by the President of the United States under the

Stafford Act (P.L. 93-288) as a result of Hurricane Dorian.

PART III. IMPLEMENTATION OF ACT/OTHER DISASTER RECOVERY-RELATED
CORRECTIONS AND MODIFICATIONS

FLEXIBILITY FOR USE OF CERTAIN FUNDS/REPORTING

SECTION 3.1.(a) Notwithstanding anyother provision of law, anyState agencythat
received fundspursuant to this act oranyofthe followingenactments mayreallocateunexpended
and unobligated program funds to the same programs or purposes for damage caused by
Hurricane Matthew, Florence, Michael, Dorian, or future storms:
(1) S.L. 2016-124.
(2) S.L. 2017-119.
(3) Section 5.6 of S.L. 2018-5.

(4) S.L. 2018-134.
(5) S.L. 2018-136.
(6) S.L. 2018-138.
(7) S.L. 2019-3.

House Bill 200 Session Law 2019-250 Page 3 (8) S.L. 2019-224.
SECTION 3.1.(b) Any State agencythat reallocates funds pursuant to subsection (a)
of this section shall report, at least 30 days prior to the reallocation, to the chairs of the Senate
Appropriations/Base Budget Committee, the chairs of the House of Representatives
Appropriations Committee, and the Fiscal Research Division. The report shall identify all of the
following:
(1) The original funding authorization.

(2) The original program or purpose for the use of the funds.
(3) The amount of funds expended or obligated for the original program or
purpose.
(4) The amount of funds that remain unexpended or unencumbered.
(5) The amount of funds to be reallocated.
(6) The hurricane or other authorized event to which the funds are being
reallocated.

SECTION 3.1.(c) For purposes of subsection (a) of this section, "State agency"
includes the Golden L.E.A.F. (Long-Term Economic Advancement Foundation), Inc., but the
Golden L.E.A.F. is not subject to subsection (b) of this section.
SECTION 3.1.(d) This section expires when all funds appropriated under this act or
any act listed in subsection (b) of this section have been expended or obligated.

USE OF PREQUALIFIED CONSTRUCTION CONTRACTORS BY LOCAL
GOVERNMENTS
SECTION 3.2. G.S. 166A-19.15(f) reads as rewritten:
"(f) Additional Powers. – In carrying out the provisions of this Article each political
subdivision is authorized to do the following:
(1) To appropriate and expend funds, make contracts, obtain and distribute
equipment, materials, and supplies for emergency management purposes and

to provide for the health and safety of persons and property, including
emergency assistance, consistent with this Article.
(1a) To award contracts for the repair, rehabilitation, or construction of private
residential structures funded byState or federal funds provided to the political
subdivision as a result of a disaster declared by the Governor under
G.S. 166A-19.21 covering the political subdivision. For purposes of contracts
awarded under this subdivision for a particular disaster, a political subdivision

is authorized to contract with contractors prequalified by the Division in
accordance with G.S. 143-135.8 for that disaster. In so contracting, the
political subdivision is not required to follow the procedures for prequalifying
contractors set forthin G.S. 143-135.8.Nothing in this subdivisionis intended
to exempt a political subdivision from other requirements of Article 8 of
Chapter 143 of the General Statutes.

…."

COMMUNITY DEVELOPMENT BLOCK GRANT FOR DISASTER RECOVERY
MODIFICATION
SECTION 3.3. Section 5.11(a) of S.L. 2016-124 reads as rewritten:
"SECTION 5.11.(a) Notwithstanding any other provision of law, all Community
Development Block Grant Disaster RecoveryProgram funds awards received bythe Department

of Commerce State in response to the declarations and executive orders described in Section 3.1
of this act act, or in any subsequent federally declared disasters, shall be transferred to the
Emergency Management Division of the Department of Public Safety.administered by the North
Carolina Office of Recovery and Resiliency of the Department of Public Safety, including

Page 4 Session Law 2019-250 House Bill 200circumstances where the designated grantee is an agency other than the North Carolina Office of
Recovery and Resiliency."

COMMUNITY COLLEGE OFFSET
SECTION 3.4. Notwithstanding any provision of S.L. 2018-136 or the Committee
Report described in Section 6.1 of that act to the contrary, funds allocated to the Community
Colleges System Office in Section 4.1 of S.L. 2018-136 may be used to offset a receipt shortfall

due to enrollment declines caused by Hurricane Florence.

MODIFICATIONS TO DISASTER RECOVERY RECOMMENDED BY THE JOINT
LEGISLATIVE COMMITTEE ON PROGRAM EVALUATION
SECTION 3.5.(a) G.S. 166A-19.11 reads as rewritten:
"§ 166A-19.11. Powers of the Secretary of Public Safety.
The Secretary shall be responsible to the Governor for State emergency management

activities. The Secretary shall have the following powers and duties as delegated by the
Governor:

(3a) To notify the Director of the Budget, the Office of the Governor, the chairs of
the House of Representatives and Senate Appropriations Committees, the
chairsofthe HouseofRepresentativesandSenateAppropriationsCommittees

on Justice and Public Safety, the Fiscal Research Division, and anyother State
entities deemed necessary of the potential for using Community Development
Block Grant-Disaster Recovery (CDBG-DR) funds to cover the nonfederal
share of matching requirements for eligible programs at the following times:
a. June 1 of each year.
b. Within five days of a presidential disaster declaration for the State of
North Carolina.

(3b) To report annually by December 1 to the chairs of the House of
Representatives and Senate Appropriations Committees on Justice and Public
Safety 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.
…."
SECTION 3.5.(b) Article 1A of Chapter 166A of the General Statutes is amended

by adding a new section to read:
"§ 166A-19.13. Data collection, reporting, use of State and federal funds.
(a) The Department of Public Safety shall establish mechanisms to regularly solicit input
from entities receiving federal or State disaster recovery funds regarding ways to improve the
administration of the funds and associated programs. The mechanisms may include surveys and
focus groups.

(b) By December 1, 2020, the Department of Public Safety shall modify its policies and
procedures for disaster recovery to do the following:
(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. Contracts subject to Article 3D of Chapter 143 of the
General Statutes are exempt from this subsection.

(2) Establish minimum competencies for staff who administer the Community
Development Block Grant-Disaster Recovery (CDBG-DR) program,
including experience with either traditional CDBG programs or CDBG-DR
programs.

House Bill 200 Session Law 2019-250 Page 5 (3) Describe how the input obtained from the mechanisms established in
subsection (a) of this section will be incorporated into revisions of its policies
and procedures.
(c) By January 1, 2020, the Office of Recovery and Resiliency (Office) shall develop
performance metrics for all entities receiving federal or State disaster recovery funds, including
the following:
(1) Total number of projects managed overall.

(2) Outreach and intake metrics.
(3) Amount of disaster recovery funds spent on administrative activities.
(4) Amount of disaster recovery funds disbursed on behalf of recipients."
SECTION 3.5.(c) Section 5.8 of S.L. 2018-136, as amended by Section 2.14(a) of
S.L. 2018-138, reads as rewritten:
"SECTION 5.8.(a) Beginning January 1, 2019, the Office of Recovery and Resiliency
(Office) shall provide separate quarterly reports to the Director of the Budget, the standing

Appropriations Committees of the Senate and the House of Representatives, and the Fiscal
Research Division on the use of disaster recovery and assistance funds expended from the
Hurricane Florence Recovery Fund and from Fund, the State Emergency Response and Disaster
Relief Fund for Hurricane Matthew. Matthew, and funds appropriated for disaster relief for
Hurricane Dorian. The separate reports shall summarize oversight activities and the results
achieved as well as all the following:

(1) Expenditures by program and by source of funds.
(2) Expenditures required to receive federal grants.
(3) Federal funding provided to the State to refund certain federally related
spending.
(4) Actual and projected State spending data including time lines and milestones.
(5) Total State spending data by agency and by program.
(6) Total State spending by program and county, where practicable.

(7) Location and job responsibilities of all time-limited State positions created
under this act or paid for with federal funds received as a result of Hurricane
Florence.
"SECTION 5.8.(a1) Beginning January 1, 2020, the Office shall provide quarterly reports
to the Director of the Budget, the standing Appropriations Committees of the Senate and the
House of Representatives, and the Fiscal Research Division on the use of Community
Development Block Grant-Disaster Recovery funds expended starting December 1, 2019, and

thereafter. The reports shall include the following performance metrics:
(1) Average time-cycle by process step, including from application to fund
distribution, by county where practicable.
(2) Number of projects by process step and managed overall, by county where
practicable.
(3) Average cost per project, excluding the infrastructure program, by county

where practicable.
(4) Outreach and intake metrics by county where practicable.
(5) Amount and percentage of disaster recovery funds spent on administrative
activities.
(6) Amount and percentage of disaster recovery funds disbursed on behalf of
recipients.
(7) Additional performance metrics developed by the Office.

"SECTION 5.8.(a2) Beginning January 1, 2020, the Office shall provide separate quarterly
reports to the Director of the Budget, the standing Appropriations Committees of the Senate and
the House of Representatives, and the Fiscal Research Division on the use of disaster recovery
and assistancefunds,otherthan CommunityDevelopmentBlockGrant-DisasterRecoveryfunds,

Page 6 Session Law 2019-250 House Bill 200expended 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. The
separate reports shall include the following performance metrics:
(1) The average number of days from application to fund distribution, project
commencement, and project completion, where applicable and practicable.
(2) Average cost per project, by county where practicable.
(3) Amount and percentage of disaster recovery funds spent on administrative

activities.
(4) Amount and percentage of disaster recovery funds obligated for
administrative activities.
(5) Amount and percentage of disaster recovery funds disbursed on behalf of
recipients.
(6) Amount and percentage of disaster recovery funds obligated on behalf of
recipients.

(7) Number of individuals, households, entities, or other unit served, by county
where practicable.
The separate reports shall provide the performance metrics for each funding stream, where
practicable.
"SECTION 5.8.(b) In addition to the quarterly reports required under subsection (a)
subsections (a), (a1), and (a2) of this section and beginning January 1, 2020, the Office shall

provideannual reportsthatcompiletheinformationcontainedinthequarterlyreports.Theannual
reports shall be submitted to the entities required under subsection (a) of this section.
"SECTION 5.8.(c) Each report required by this section shall include information about all
funds expended or encumbered pursuant to this act or any other act providing funds to address
the impacts of Hurricanes Matthew and Florence, Matthew, Florence, Michael, and Dorian,
regardless of which State agency or non-State entity administers the funds. State agencies and
non-State entities that administer or receive any funds appropriated in this act shall assist and

fully cooperate with the Office of Recovery and Resiliency in meeting the Office's obligations
under this section."
SECTION 3.5.(d) The Office of Recovery and Resiliency (Office) shall make
recommendations regarding the staffing levels that are necessary to do the following:
(1) Administer the Community Development Block Grant-Disaster Recovery
(CDBG-DR) program during times when the Office is administering
CDBG-DR funds.

(2) Administer the CDBG-DR program during times when the Office is not
administering CDBG-DR funds.
(3) Maintain a base-level of staff to provide resiliency planning and coordination,
provide continuous required disaster recovery functions, and ensure the State
is adequately prepared to expand its disaster recovery efforts in the event of
future natural disasters.

(4) Expand from a base-level of staff to provide necessary functions immediately
following a natural disaster.
SECTION 3.5.(e) For each recommendation required under subsection (d) of this
section, the Office shall include the class and number of temporary or permanent full-time
equivalent positions. For each position, the Office shall include an explanation of the necessity
for the position to be permanent if applicable, the funding source of the position, and a job
description of the position with corresponding salary requirements. The Office shall report the

recommendations to the chairs of the House of Representatives and Senate Appropriations
Committees, the chairs of the House of Representatives and Senate Appropriations Committees
on Justiceand PublicSafety, theJoint Legislative Commission on Governmental Operations, and
the Fiscal Research Division by March 1, 2020.

House Bill 200 Session Law 2019-250 Page 7 SECTION 3.5.(f) The Joint Legislative Program Evaluation Oversight Committee
shall include in the biennial work plan of the Program Evaluation Division an evaluation of the
Department of Public Safety's coordination with nonprofit organizations for disaster recovery
planning. The Program Evaluation Division shall submit its evaluation to the Joint Legislative
Program Evaluation Oversight Committee and to the chairs of the House of Representatives and
Senate Appropriations Committees on Justice and Public Safety.

CORRECTION TO 2019 DISASTER RECOVERY ACT
SECTION 3.6.(a) Section 1.1 of S.L. 2019-224 reads as rewritten:
"SECTION 1.1. Transfer from Hurricane Florence Disaster Recovery Reserve. – The State
Controller shall transfer the sum of ninety-four million one hundred three thousand dollars
($94,103,000) eighty-nine million one hundred three thousand dollars ($89,103,000) in
nonrecurring funds for the 2019-2020 fiscal year from the Hurricane Florence Disaster Recovery
Reserve in the General Fund to the Hurricane Florence Disaster Recovery Fund created in S.L.

2018-134, and these funds are appropriated within the Fund and shall be allocated as provided in
Part II of this act."
SECTION 3.6.(b) This section becomes effective July 1, 2019.

MODIFICATIONS TO FLOOD INSURANCE PILOT
SECTION 3.7.(a) Section 2.1 of S.L. 2019-224 reads as rewritten:

"SECTION 2.1. Allocations. – The funds appropriated and reallocated in Part I of this act
in the Hurricane Florence Disaster Recovery Fund shall be allocated as follows:

(7) $6,000,000 to the Department of Public Safety, Division of Emergency
Management to be used as follows:

d. $2,000,000 to develop a pilot program to help pay for the cost of up to

two years' flood insurance for eligible applicants and eligible
properties. Subject to the eligibility requirements contained in this
sub-subdivision, when awardingfunds, the Division shall give priority
to applicants and subject properties in the most impacted and
distressed counties as determined by the United States Department of
Housing and Urban Development for Hurricane Matthew, Hurricane
Florence, or both. In order to be eligible for funds under the pilot

program, all of the following shall apply:
1. The applicant earned no more than eightypercent (80%) of the
subject area medianincomeduringthe precedingcalendar year
and has not received flood insurance for the subject property
from any federal program, including by the Community
Development Block Grant–Disaster Recovery or the Federal

Emergency Management Agency (FEMA) Housing
Assistance Program.year.
2. The subject property is the applicant's primary residence, is
insurable, and has experienced a repetitive loss as that term is
defined by FEMA.residence and is insurable.
…."
SECTION 3.7.(b) This section becomes effective July 1, 2019.

CLARIFY DOT REPORTING REQUIREMENTS
SECTION3.8. EffectiveMay16,2019,Section3ofS.L. 2019-15reads as rewritten:

Page 8 Session Law 2019-250 House Bill 200 "SECTION 3. Transfer from the Office of State Budget and Management. – Of the funds
allocated to the Department under Section 4.1 of S.L. 2018-136, the Office of State Budget and
Management shall transfer the remaining sum to the Fund. The reporting requirements contained
inS.L.2018-136andS.L. 2018-138continuetoapplytothesefundsandanyotherfunds,whether
State or federal, the Department receives or expends for the purpose of disaster recovery, relief,
or resiliency."

PART IV. MISCELLANEOUS

REIMBURSEMENT FOR FUNDS PROVIDED UNDER THIS ACT
SECTION 4.1. A recipient of State funds under this act shall 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, including funds from insurance policies in effect and available federal
aid. State funds paid under this act are declared to be excess over funds received by a recipient

from the settlement of a claim for loss or damage covered under the recipient's applicable
insurance policy in effect. Further, each institution of higher education and non-State entity that
receives State funds under this act shall also seek private donations to help cover the losses or
needs for which these State funds are provided.

ADDITIONAL LIMITATIONS ON USE OF FUNDS

SECTION 4.2.(a) The Governor shall ensure that funds appropriated in this act are
expended in a manner that does not adversely affect any person's or entity's eligibility for federal
fundsthat are made available,orthat are anticipatedto bemade available, as aresult of Hurricane
Florence. The Governor shall also, to the extent practicable, avoid using State funds to cover
costs that will be, or likely will be, covered by federal funds.
SECTION 4.2.(b) The Governor maynot use the funds described in this act to make
reallocations under G.S. 166A-19.40(c). Nothing in this act shall be construed to prohibit the

Governor from exercising the Governor's authority under this statute with respect to funds other
than those described in this act.

INVOLVEMENT OF HISTORICALLY UNDERUTILIZED BUSINESSES
SECTION 4.3. It is the intent of the General Assembly that, during this time of
rebuilding and relief efforts, each State agency should strive to acquire goods and services from
historicallyunderutilized business vendors, whether directlyas principal contractors or indirectly

as subcontractors or otherwise.

LEGISLATIVE REVIEW OF FEDERAL FUNDING AND REMAINING UNMET
NEEDS
SECTION 4.4. It is the intent of the General Assembly to review the funds
appropriated by Congress for disaster relief and to consider actions needed to address any

remaining unmet needs. It is also the intent of the General Assembly to review the adequacy of
the measures funded by this act at that time.

PROHIBITION ON USE OF STATE FUNDS TO CONSTRUCT CERTAIN
RESIDENCES
SECTION 4.5.(a) No State funds appropriated in this act may be expended for the
construction of any new residence within the 100-year floodplain unless the construction is in an

area regulated by a unit of local government pursuant to a floodplain management ordinance and
the construction complies with the ordinance. For purposes of this act, the term "100-year
floodplain" means any area subject to inundation by the one percent (1%) annual chance flood

House Bill 200 Session Law 2019-250 Page 9event, as indicated on the most recent Flood Insurance Rate Map prepared by the Federal
Emergency Management Agency under the National Flood Insurance Program.
SECTION 4.5.(b) Homeowners in the 100-year floodplain who receive
homeowner's housing assistance pursuant to this act shall have in effect federal flood insurance,
if available, as a precondition to receipt of State homeowner's housing assistance for losses
resulting from future flooding.
SECTION 4.5.(c) Funds loaned to small andmid-sized businesses shall be used only

for eligible purposes under the Small Business Administration (SBA) disaster loan assistance
program, as described in the federal disaster declarations designated by the SBA as NC-00111.
Payments for economic losses shall be limited to documented business expenses necessary for
the continued operation of the business.

EACH APPROPRIATION AND ALLOCATION IS MAXIMUM AND CONDITIONAL
SECTION 4.6. The appropriations and allocations made in this act are for maximum

amounts necessary to implement this act. Savings shall be effected where the total amounts
appropriated or allocated are not required to implement this act.

APPROPRIATION OF FEDERAL FUNDS
SECTION 4.7. Appropriation/Federal Funds. – Funds received on or after
September 1, 2019, for federal disaster assistance programs for State disasters as a result of

Hurricane Dorian are appropriated in the amounts provided in the notifications of award from
the federal government or any entity acting on behalf of the federal government to administer
federal disaster recovery funds. The Office of State Budget and Management and affected State
agencies shall report all notifications of award to the Joint Legislative Commission on
Governmental Operations and the Fiscal Research Division of the General Assembly.

DIRECTED GRANTS TO NON-STATE ENTITIES

SECTION 4.8.(a) Definitions. – For purposes of this act, the following definitions
apply:
(1) Directed grant. – Nonrecurring funds allocated by a State agency to a
non-State entity as directed by an act of the General Assembly.
(2) Non-State entity. – As defined in G.S. 143C-1-1.
SECTION 4.8.(b) Requirements. – Nonrecurring funds appropriated in this act as
directed grants are subject to all of the following requirements:

(1) Directed grants are subject to the provisions of subsections (b) through (k) of
G.S. 143C-6-23.
(2) Directed grants of one hundred thousand dollars ($100,000) or less may be
made in a single annual payment in the discretion of the Director of the
Budget. Directed grants of more than one hundred thousand dollars
($100,000) shall be made in quarterly or monthly payments in the discretion

of the Director of the Budget. A State agency administering a directed grant
shall begin disbursement of funds to a non-State entity that meets all
applicable requirements as soon as practicable,but nolaterthan 100 days after
the date this act becomes law.
(3) Beginning on the first day of a quarter following the deadline provided in
subdivision (2) of this subsection and quarterly thereafter, State agencies
administering directed grants shall report to the Fiscal Research Division on

the status of funds disbursed for each directed grant until all funds are fully
disbursed. At a minimum, the report required under this subdivision shall
include updates on (i) the date of the initial contact, (ii) the date the contract
was sent to the entity receiving the funds, (iii) the date the disbursing agency

Page 10 Session Law 2019-250 House Bill 200 received the fully executed contract back from the entity, (iv) the contract
execution date, and (v) the payment date.
(4) Notwithstanding any provision of G.S. 143C-1-2(b) to the contrary,
nonrecurring funds appropriated in this act as directed grants shall not revert
until June 30, 2021.
(5) Directed grants to nonprofit organizations are for nonsectarian, nonreligious
purposes only.

SECTION 4.8.(c) This section expires on June 30, 2021.

PART V. VARIOUS CHANGES TO BUDGET MATTERS

CORRECTIONS TO BASE BUDGET
SECTION 5.1.(a) Section 2.1 of S.L. 2019-242 is repealed.
SECTION 5.1.(b) S.L. 2019-242 is amended by adding a new section to read:

"SECTION 2.1A. The General Fund availability derived from State tax revenue, nontax
revenue, and other adjustments used in developing the budget for each year of the 2019-2021
fiscal biennium is as follows:

FY 2019-2020 FY 2020-2021
Unappropriated Balance 645,592,678 2,356,664,283

Actual and Anticipated Reversions 287,029,354 200,000,000
Over Collections 896,662,617 -
Highway Fund Recovery Act (S.L. 2019-15) (120,000,000) -
Total, Prior Year-End Fund Balance 1,709,284,649 2,556,664,283

Tax Revenues
Personal Income 13,110,400,000 13,700,300,000

Sales and Use 8,141,200,000 8,486,500,000
Corporate Income 732,600,000 787,600,000
Franchise 749,700,000 769,900,000
Insurance 565,300,000 579,800,000
Alcoholic Beverage 411,500,000 425,700,000
Tobacco Products 256,200,000 254,900,000
Other Tax Revenues 132,700,000 136,400,000

Subtotal, Tax Revenues 24,099,600,000 25,141,100,000
Non-tax Revenues
Judicial Fees 228,800,000 225,300,000
Investment Income 167,200,000 168,300,000
Disproportionate Share 165,300,000 130,000,000
Master Settlement Agreement 136,200,000 131,800,000

Insurance 87,800,000 90,100,000
Other Non-tax Revenues 202,800,000 204,300,000
Subtotal, Non-tax Revenues 988,100,000 949,800,000

Total, Net Revenues 25,087,700,000 26,090,900,000

Adjustment to Tax Revenue: 2019 Session

Extend Tax Credits/Other Finance Changes
(S.L. 2019-237) (3,900,000) (16,500,000)
Various Finance Law Changes (S.L. 2019-246) (15,300,000) (41,200,000)
Subtotal, Adjustments to Tax Revenue (19,200,000) (57,700,000)

House Bill 200 Session Law 2019-250 Page 11Reservations of Tax Revenue
Savings Reserve (36,555,000) (150,450,000)
Subtotal, Statutory Reservations of Revenue (36,555,000) (150,450,000)

Other Adjustments to Availability
Adjustment to Transfer from Department of Insurance 1,249,541 2,700,421

Adjustment to Transfer from State Treasurer 41,913 91,132
NC G.R.E.A.T. Program Funding (S.L. 2019-230) (15,000,000) (15,000,000)
Subtotal, Other Adjustments to Availability (13,708,546) (12,208,447)

Revised Total Net General Fund Availability 26,727,521,103 28,427,205,836

General Fund Appropriations

2019 Storm Recovery/Various Budget Corrections
(House Bill 200, 2019 Regular Session) (74,304,813) (8,856,125)
Ensuring Authorization of Federal Funds
(S.L. 2019-192, as amended) 6,023,842 15,223,842
Salary Increases/Adult Correctional Employees
(S.L. 2019-208) (35,914,734) (56,829,468)

Pay Increases/State Employees (S.L. 2019-209) (239,220,554) (572,705,157)
Pay Increases/State Highway Patrol (S.L. 2019-210) (3,600,000) (7,200,000)
Pay Increases/SBI & ALE (S.L. 2019-211) (2,680,000) (3,360,000)
Standing Up for Rape Victims Act of 2019
(S.L. 2019-221) (3,000,000) (3,000,000)
School Safety Funds, Programs, and Reports
(S.L. 2019-222) (38,833,333) (29,800,000)

Prison Safety/TANF State Plan/Clarifications
(S.L. 2019-223) (4,471,149) -
Raise the Age Funding (S.L. 2019-229, as amended) (28,878,616) (43,402,450)
Community Colleges Budget/2019-2021 Biennium
(S.L. 2019-235, as amended) (28,216,988) (25,436,606)
Combat Absentee Ballot Fraud
(S.L. 2019-239, as amended) (1,156,004) (44,923)

2019-2021 Base Budgets/Certain Agencies
(S.L. 2019-242) (23,900,304,471) (23,981,490,408)
Teacher Step Act (S.L. 2019-247) (16,300,000) (16,300,000)
Subtotal, General Fund Appropriations (24,370,856,820) (24,733,201,295)

Unappropriated Balance Remaining 2,356,664,283 3,694,004,541"

SECTION 5.1.(c) Section 3.6(b) of S.L. 2019-242 is amended by adding a new
subdivision to read:
"(5) The Director of the Budget shall ensure the prompt payment of the principal
and interest on bonds and notes of the State according to their terms."

STATE BOARD OF ELECTIONS BUDGET CORRECTIONS

SECTION 5.2.(a) Section 5.1 of S.L. 2019-239 reads as rewritten:
"SECTION 5.1. The appropriations made in this Part and S.L. 2019-209 act, S.L. 2019-209,
S.L. 2019-242, and any other legislation enacted during the 2019-2021 fiscal biennium expressly
making appropriations to the State Board of Elections are for maximum amounts necessary to

Page 12 Session Law 2019-250 House Bill 200provide the services and accomplish the purposes described in the budget for the State Board of
Elections in accordance with the State Budget Act. Savings shall be effected where the total
amounts appropriated are not required to perform these services and accomplish these purposes,
and the savings shall revert to the appropriate fund at the end of each fiscal year, except as
otherwise provided by law."
SECTION 5.2.(b) Section 5.2 of S.L. 2019-239 reads as rewritten:
"SECTION 5.2. Appropriations In addition to the appropriations set forth in S.L. 2019-209,

S.L. 2019-242, and anyother legislation enacted during the 2019-2021 fiscal biennium expressly
appropriating funds to the State Board of Elections, appropriations from the General Fund for the
budget of the State Board of Elections are made for the fiscal biennium ending June 30, 2021, as
follows:
…."
SECTION 5.2.(c) Section 5.7 of S.L. 2019-239 is rewritten to read:
"SECTION 5.7. There is appropriated from the State Board of Elections Special Fund

(28025) the sum of three million dollars ($3,000,000) on a nonrecurring basis in each year of the
2019-2021 fiscal biennium to modernize the Statewide Elections Information Management
System."

COMMUNITY COLLEGE CORRECTIONS
SECTION 5.3.(a) Section 1.1 of S.L. 2019-235 reads as rewritten:

"SECTION 1.1. The appropriations made in this act and S.L. 2019-209 act, S.L. 2019-209,
S.L. 2019-242, and anyother legislation enacted during the 2019-2021 fiscal biennium expressly
appropriating funds to the Community College System are for maximum amounts necessary to
provide the services and accomplish the purposes described in the budget for the Community
College System in accordance with the State Budget Act. Savings shall be effected where the
total amounts appropriated are not required to perform these services and accomplish these
purposes, and the savings shall revert to the appropriate fund at the end of each fiscal year, except

as otherwise provided by law."
SECTION 5.3.(b) Section 1.2 of S.L. 2019-235 reads as rewritten:
"SECTION 1.2. In addition to the appropriations set forth in S.L. 2019-209 S.L. 2019-209,
2019-242, and any other legislation enacted during the 2019-2021 fiscal biennium expressly
appropriating funds for the Community College System, appropriations from the General Fund
for the budget of the Community College System are made for the fiscal biennium ending June
30, 2021, as follows:

…."
SECTION 5.3.(c) Section 2.1(16) of S.L. 2019-235 reads as rewritten:
"(16) Workforce-Focused Multicampus Centers (Fund Code 1625) – Two million
two hundred sixty-six thousand four hundred forty-eight dollars ($2,266,448)
Two million two hundred twenty-six thousand three hundred forty-eight
dollars ($2,226,348) in recurring funds for each fiscal year of the 2019-2021

fiscal biennium to support four approved multicampus sites as follows:
Forsyth Tech Transportation Campus, RTP Campus of Wake Technical
Community College, the Scotland County Campus of Richmond Community
College, and the Aviation Campus of Guilford Technical Community
College."

INCLUDE POWELL BILL FUNDS IN DEPARTMENT OF TRANSPORTATION

BUDGET
SECTION 5.4.(a) S.L. 2019-231 is amended by adding a new section to read:
"ADDITIONAL POWELL BILL FUNDS FOR SMALLER MUNICIPALITIES

House Bill 200 Session Law 2019-250 Page 13 SECTION 4.4A. The additional sum of seven million three hundred seventy-five thousand
dollars ($7,375,000) in recurring funds appropriated in this act for the 2020-2021 fiscal year to
the Department of Transportation for the Powell Bill Program (Fund Code 7836) shall be
allocated in accordance with the requirements of G.S. 136-41.1(a) only to municipalities with a
population of 200,000 or less according to the most recent federal decennial census completed
as of the effective date of this section. Nothing in this section shall be construed as (i) prohibiting
municipalities eligible for funds under this section from being eligible for recurring funds

appropriated in this act to the Department of Transportation for the State Aid–Powell Bill Fund
or (ii) otherwise modifying the allocation of recurring funds appropriated in this act to the
Department of Transportation for the State Aid–Powell Bill Fund."
SECTION 5.4.(b) If House Bill 966, 2019 Regular Session, becomes law, Section
40.4 of that act is repealed.

DEPARTMENT OF REVENUE CONTINGENCY

SECTION 5.5. If House Bill 966, 2019 Regular Session, becomes law, then Section
8 of S.L. 2019-237 is repealed.

CONTINGENT REPEAL OF CERTAIN FINANCE PROVISIONS
SECTION 5.6. If House Bill 966, 2019 Regular Session, becomes law, Sections
41.4, 41.5, and 41.10 of that act are repealed.

STATE FUNDS/REQUIRE DEPOSIT IN STATE TREASURY
SECTION 5.7.(a) Article 6 of Chapter 147 of the General Statutes is amended by
adding a new section to read:
"§ 147-76.1. Require deposit into the State treasury of funds received by the State.
(a) Definition. – For purposes of this section, the term "cash gift or donation" means any
fundsprovided,withoutvaluableconsideration,totheState,forusebytheState,orforthebenefit

of the State.
(b) Requirement. – Except as otherwise specifically provided by law, all funds received
bytheState,includingcashgiftsanddonations,shallbedepositedintotheStatetreasury.Nothing
in this subsection shall be construed as exempting from the requirement set forth in this
subsection funds received by a State officer or employee acting on behalf of the State.
(c) Terms Binding. – Except as otherwise provided by subsection (b) of this section, the
terms of an instrument evidencing a cash gift or donation are a binding obligation of the State.

Nothing in this section shall be construed to supersede, or authorize a deviation from the terms
of an instrument evidencing a gift or donation setting forth the purpose for which the funds may
be used."
SECTION 5.7.(b) G.S. 147-83 reads as rewritten:
"§ 147-83. Receipts from federal government and gifts not affected.
General Statutes 147-77, 147-78, 147-80, 147-81, 147-82, 147-83 and 147-84 shall not be

held or construed to affect or interfere with the receipts and disbursements of any funds received
by any institution or department of this State from the federal government or any gift or donation
to any institution or department of the State or commission or agency thereof when either in the
act of Congress, relating to such funds received from the federal government, or in the instrument
evidencing the said private donation or gift, a contrary disposition or handling is prescribed or
required, and the said sections shall not apply to any moneys paid to any department, institution
oragency,orundertakingoftheStateofNorth Carolina,as apartofanylegislativeappropriation,

or allotment from any contingent fund, as provided by law, after the same has been paid out of
the State treasury."
SECTION 5.7.(c) This section becomes effective July 1, 2019, and applies to funds
received on or after that date.

Page 14 Session Law 2019-250 House Bill 200DEPARTMENTAL POSITION TRANSFERS SUBJECT TO STATE BUDGET ACT
SECTION 5.8. G.S. 143B-10(c) reads as rewritten:
"(c) Department Staffs. – The head of each principal State department may establish
necessarysubordinatepositions within his thedepartment, make appointments to thosepositions,
and remove persons appointed to those positions, all within the limitations of appropriations and
subject to the State Budget Act and the North Carolina Human Resources Act. All employees

within a principal State department shall be under the supervision, direction, and control of the
head of that department. The head of each principal State department may establish or abolish
positions, transfer officers and employees between positions, and change the duties, titles, and
compensation of existing offices and positions as he the head of the department deems necessary
for the efficient functioning of the department, subject to the State Budget Act and the North
Carolina Human Resources Act and the limitations of available appropriations. For the purposes
of the foregoing provisions, a member of a board, commission, council, committee, or other

citizen group shall not be considered an "employee within a principal department. Nothing in this
subsection shall be construed as authorizing the transfer of officers and employees between
departments without express authorization of the General Assembly."

STATE BUDGET ACT AMENDMENTS
SECTION 5.9.(a) G.S. 143C-1-3(a) reads as rewritten:

"(a) Types. – The Controller shall account for State resources through use of the fund
types listed in this subsection. The Controller may not establish a fund type that differs from the
listed fund types unless the Governmental Accounting Standards Board has approved the use of
the different fund type.
The fund types are described as follows, except that where a conflict exists between a
description used in this section and the definition of the corresponding fund type issued by the
Governmental Accounting Standards Board, it is presumed that the definition issued by the

Governmental Accounting Standards Board shall prevail.
Governmental Funds.
(1) Capital Projects Funds. – Accounts for financial resources to be used for the
acquisition or construction of major capital facilities other than those financed
by proprietary funds or in trust funds for individuals, private organizations, or
other governments. fiduciary funds. Capital outlays financed from general
obligation bond proceeds should be accounted for through a capital projects

fund.
(2) Debt Service Funds. – Accounts for the accumulation of resources for, and the
payment of, general long-term debt principal and interest.
(3) General Fund. – Accounts for all financial resources except those required to
be reported in another fund.
(4) Special Revenue Funds. – Accounts for the proceeds of specific revenue

sources, other than trusts for individuals, private organizations, or other
governments debt service or for major capital projects, that are legally
restricted to expenditure for specified purposes.
(5) Permanent Funds. – Accounts for resources that are legally restricted to the
extent that only earnings, and not principal, may be used for purposes that
support the reporting government's programs.
Proprietary Funds.

(6) Enterprise Funds. – Accounts for any activity for which a fee is charged to
external users for goods or services. Activities are required to be reported as
enterprise funds if any one of the following criteria is met. Each of these

House Bill 200 Session Law 2019-250 Page 15 criteria should be applied in the context of the activity's principal revenue
sources.
a. The activity is financed with debt that is secured solely by a pledge of
the net revenues from fees and charges of the activity.
b. Laws or regulations require that the activity's costs of providing
services, including capital costs, be recovered with fees and charges
rather than with taxes or similar revenues.

c. The pricing policies of the activityestablish fees and charges designed
to recover its costs, including capital costs.
(7) Internal Service Funds. – Accounts for any activity that provides goods or
services to other funds, departments, or agencies of the primary government
and its component units, or to other governments, on a cost-reimbursement
basis. Internal service funds should be used only if the reporting government
is the predominant participant in the activity. Otherwise, the activity should

be reported as an enterprise fund.
Agency and Trust Fiduciary Funds.
(8) Agency Custodial Funds. – Accounts for resources held by the reporting
government in a purely custodial capacity. Agency funds typically involve
only the receipt, temporary investment, and remittance of fiduciary resources
to individuals, private organizations, or other governments.capacity.

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, as described in this section.
(9) Investment Trust Funds. – Accounts for the external portion of investment
pools reported by the sponsoring government.
(10) Pension and Other Employee Benefit Trust Funds. – Accounts for resources
that are required 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.pension plans,
other postemployment benefit plans, and other employee benefit plans that
meet certain Governmental Accounting Standards Board (GASB) criteria.
(11) Private-Purpose Trust Funds. – Accounts for all other trust arrangements
under which principal and income benefit individuals, private organizations,
or other governments.that are not required to be reported in investment trust

funds and pension and other employee benefit trust funds."
SECTION 5.9.(b) G.S. 143C-3-5 reads as rewritten:
"§ 143C-3-5. Budget recommendations and budget message.
(a) Budget Proposals. – The Governor shall present budget recommendations, consistent
with G.S. 143C-3-1, 143C-3-2, and 143C-3-3 to each regular session of the General Assembly
at a mutually agreeable time to be fixed by joint resolution.

(b) Odd-Numbered Years. – In odd-numbered years the budget recommendations shall
include the following components:
(1) ARecommended State Budget setting forth goals forimprovingtheState with
recommended expenditure requirements, funding sources, and performance
information for each State government program and for each proposed capital
improvement. The Recommended State Budget may be presented in a format
chosen by the Director, except that the Recommended State Budget shall

clearly distinguish program base budget requirements, program reductions,
program eliminations, program expansions, and new programs, and shall
explain all proposed capital improvements in the context of the Six-Year
Capital Improvements Plan and as required by G.S. 143C-8-6.

Page 16 Session Law 2019-250 House Bill 200 (1a) The Governor's Recommended State Budget shall include a base budget,
which shall be presented in the budget support document pursuant to
subdivision (2) of this subsection.
(2) A Budget Support Document Recommended Base Budget showing, for each
budget code and purpose or program in State government, accounting detail
corresponding to the Recommended State Budget.
a. The Budget Support Document Recommended Base Budget shall

employ the North Carolina Accounting System Uniform Chart of
Accounts adopted by the State Controller to show both uses and
sources of funds and shall display in separate parallel columns all of
the following: (i) actual expenditures and receipts for the most recent
fiscal year for which actual information is available, (ii) the certified
budget for the preceding fiscal year, (iii) the currently authorized
budget for the preceding fiscal year, (iv) program base budget

requirements for each fiscal year of the biennium, (v) proposed
expenditures and receipts for each fiscal year of the biennium, and (vi)
proposed increases and decreases.
b. The Budget Support Document Recommended Base Budget shall
include detailed information on recommended expenditures for capital
improvements as required by G.S. 143C-8-6.

c. The Budget Support Document Recommended Base Budget shall
include accurate projections of receipts, expenditures, and fund
balances. Estimated receipts, including tuition collected by university
or community college institutions, shall be adjusted to reflect actual
collections from the previous fiscal year, unless the Director
recommends a change that will result in collections in the budget year
thatdifferfromprior yearactuals,ortheDirectorotherwisedetermines

there is a more reasonable basis upon which to accurately project
receipts. Revenue and expenditure detail provided in the Budget
Support Document shall be no less detailed than the two-digit level in
the North Carolina Accounting System Uniform Chart of Accounts as
prescribed by the State Controller.
d. The Budget Support Document Recommended Base Budget shall
clearly identify all proposed expenditures supported by existing or

proposed appropriations, including statutory appropriations.
(3) A recommended Current Operations Appropriations Act that makes
appropriations foreach fiscal yearofthe upcomingbiennium for theoperating
and capital expenses of all State agencies as contained in the Recommended
State Budget.
(4) The biennial State Information Technology Plan as outlined in Part 2 of

Article 15 of Chapter 143B of the General Statutes to be consistent in
facilitating the goals outlined in the Recommended State Budget.
(5) A list of budget adjustments made during the prior fiscal year pursuant to
G.S. 143C-6-4 that are included in the proposed base budget for the upcoming
fiscal year. The list of budget adjustments shall identify the revision number,
revision type, revision title, the purpose or programs affected, and the amount
of funds moving between the purpose or programs.

(6) The Governor's Recommended State Budget shall include a transfer to the
Savings Reserve of fifteen percent (15%) of the estimated growth in State tax
revenues that are deposited in the General Fund for each fiscal year of the
upcoming biennium. This subdivision applies only if, and to the extent that,

House Bill 200 Session Law 2019-250 Page 17 the balance of the Savings Reserve remains below the recommended Savings
Reserve balance developed pursuant to G.S. 143C-4-2(f).
(7) The Governor's Recommended State Budget shall include a transfer to the
State Capital and Infrastructure Fund of four percent (4%) of the estimated net
State tax revenues that are deposited in the General Fund for each fiscal year
of the upcoming biennium.
(c) Even-Numbered Years. – In even-numbered years, the Governor may recommend

changes in the enacted budget for the second year of the biennium. These recommendations shall
be presented as amendments to the enacted budget and shall be incorporated in a recommended
Current Operations Appropriations Act. Any recommended changes shall clearly distinguish
program reductions, program eliminations, program expansions, and new programs, and shall
explain all proposed capital improvements in the context of the Six-Year Capital Improvements
Plan and as required by G.S. 143C-8-6. The Governor shall provide sufficient supporting
documentation and accounting detail, consistent with that required by G.S. 143C-3-5(b),

corresponding to the recommended amendments to the enacted budget.
(d) Funds Included in Budget. – Consistent with requirements of the North Carolina
Constitution, Article 5, Section 7(1), the Governor's Recommended State Budget, together with
the Recommended Base Budget and Recommended Capital Improvements Budget Support
Document, shall include recommended expenditures of State funds from all Governmental and
Proprietary Funds, as those funds are described in G.S. 143C-1-3, and all funds established for

The University of North Carolina and its constituent institutions that are subject to this Chapter.
Except where provided otherwise by federal law, funds received from the federal government
become State funds when deposited in the State treasury and shall be classified and accounted
for in the Governor's budget recommendations no differently than funds from other sources.
(e) Availability Estimates. – The recommended Current Operations Appropriations Act
shall contain a statement showing the estimates of General Fund availability, Highway Fund
availability, and Highway Trust Fund availability upon which the Recommended State Budget

is based.
(f) Budget Message. – The Governor's budget recommendations shall be accompanied
by a written budget message that does all of the following:
(1) Explains the goals embodied in the recommended budget.
(2) Explains important features of the activities anticipated in the budget.
(3) Explains the assumptions underlying the statement of revenue availability.
(4) Sets forth the reasons for changes from the previous biennium or fiscal year,

as appropriate, in terms of programs, program goals, appropriation levels, and
revenue yields.
(5) Identifies anticipated sources of funding for major spending initiatives.
(6) Prepares a fiscal analysis that addresses the State's budget outlook for the
upcoming five-year period. This fiscal analysis shall include detailed
estimates forfive yearsforanyproposals to create neworsignificantlyexpand

programs and for proposals to create new or change existing law.
(g) Different Gubernatorial Administrations. – For years in which there will be a change
in gubernatorial administrations, the incumbent Governor shall complete the budget
recommendations and budget message by December 15 and deliver them to the Governor-elect."
SECTION 5.9.(c) G.S. 143C-8-6 reads as rewritten:
"§ 143C-8-6. Recommendations for capital improvements set forth in the Recommended
State Budget.

(a) Budget Director's Recommendations. – The Director of the Budget shall recommend
expenditures for repairs and renovations of existing facilities, and real property acquisition, new
construction, or rehabilitation of existing facilities in the Recommended State Budget in
accordance with G.S. 143C-3-5.

Page 18 Session Law 2019-250 House Bill 200 (b) Repairs and Renovations in the Recommended State Budget. – The Recommended
State Budget shall contain for repairs and renovations of existing facilities: (i) the amount
recommended for each State agency, (ii) a summaryof the recommendations byproject type, and
(iii) the means of financing.
(c) Repairs and Renovations in the Recommended Capital Improvements Budget
Support Document. – TheRecommendedCapital Improvements Budget Support Documentshall
contain for each repair and renovation project recommended in accordance with subsection (b)

of this section: (i) a project description and justification, (ii) a detailed cost estimate, (iii) an
estimated schedule for the completion of the project, and (iv) an explanation of the means of
financing.
(d) Other Capital Projects in the Recommended State Budget. – The Recommended State
Budget shall contain for each capital project involving real property acquisition, new
construction, building area (sq. ft.) expansions, or the rehabilitation of existing facilities to
accommodate new or expanded uses: (i) a project description and statement of need, (ii) an

estimate of acquisition and construction or rehabilitation costs, and (iii) a means of financing the
project.
(e) Other Capital Projects in the Capital Improvements Budget Support Document. – The
Capital Improvements Budget Support Document shall contain for each capital project
recommended in accordance with subsection (d) of this section: (i) a detailed project description
and justification, (ii) a detailed estimate of acquisition, planning, design, site development,

construction, contingency and other related costs, (iii) an estimated schedule of cash flow
requirements over the life of the project, (iv) an estimated schedule for the completion of the
project, (v) an estimate of revenues, if any, likely to be derived from the project, covering the
first five years of operation, and (vi) an explanation of the means of financing.
(f) All Recommended Capital Projects. – The Director of the Budget shall ensure that
recommendations in the Recommended State Budget for repairs and renovations of existing
facilities, real property acquisition, new construction, or rehabilitation of existing facilities

include all of the following information:
(1) An estimate of maintenance and operating costs, including personnel, for the
project, covering the first five years of operation. If no increase in these
expenditures is anticipated because the recommended project would replace
an existing facility, then the level of expenditures for the previous five years
of operation shall be included instead.
(2) A recommended funding source for the operating costs identified pursuant to

subdivision (1) of this subsection."

WEB SITE POSTING OF REPORTS
SECTION 5.10.(a) G.S. 120-29.5 reads as rewritten:
"§ 120-29.5. State agency reports to the General Assembly.
(a) Submission. – Whenever a report is directed by law or resolution to be made to the

General Assembly, the State agency preparing the report shall deliver one copy of the report to
each of the following officers: the Speaker of the House of Representatives, the President Pro
Temporeof theSenate, theHousePrincipal Clerk, andtheSenate Principal Clerk; and twocopies
of the report to the Legislative Library. The State agency is encouraged to inform members of
the General Assembly that an electronic copy is available. This section does not affect any
responsibilities for depositing documents with the State Library or the State Publications
Clearinghouse under Chapter 125 of the General Statutes.

(b) Publication. – A State agency submitting a report pursuant to subsection (a) of this
section or a report directed by law or resolution to be made to a committee or subcommittee of
the General Assembly shall publish the report on a public Internet Web site maintained by the
State agency."

House Bill 200 Session Law 2019-250 Page 19 SECTION 5.10.(b) This section becomes effective January 1, 2020, and applies to
reports submitted on or after that date.

STATE BUDGET ACT/CLARIFY WHAT CONSTITUTES AN APPROPRIATION
SECTION 5.11. G.S. 143C-1-2(a) reads as rewritten:
"(a) Appropriation Required to Withdraw State Funds From the State Treasury. – In

accordance with Section 7 of Article V of the North Carolina Constitution, no money shall be
drawn from the State treasury but in consequence of appropriations made by law. A law enacted
by the General Assembly that authorizes the expenditure of money expressly appropriates funds
from the State treasuryis an appropriation; however, an enactment bythe General Assemblythat
authorizes, specifies, or otherwise provides that funds may be used for a particular describes the
purpose of a fund, authorizes the use of funds, allows the use of funds, or specifies how funds

may be expended, is not an appropriation."

PART VI. EFFECTIVE DATE
SECTION 6.1. Except as otherwise provided, this act is effective when it becomes
law.
In the General Assembly read three times and ratified this the 14 day of November,

2019.

s/ Philip E. Berger
President Pro Tempore of the Senate

s/ Tim Moore
Speaker of the House of Representatives

s/ Roy Cooper

Governor

Approved 9:32 a.m. this 18 day of November, 2019

Page 20 Session Law 2019-250 House Bill 200

Bill Biennium: 2019

Bill Type: bill

Bill Session: 2019

Bill Chamber: House

Last Action: Ch. SL 2019-250 | House | 2019-11-18

Bill Editions: