North Carolina 2025 2025-2026 Regular Session

North Carolina House Bill H222 Introduced / Bill

Filed 02/25/2025

                    GENERAL ASSEMBLY OF NORTH CAROLINA 
SESSION 2025 
H 	D 
HOUSE BILL DRH30110-NBa-56  
 
 
 
Short Title: C.O.O.P.E.R. Accountability Act. 	(Public) 
Sponsors: Representative B. Jones. 
Referred to:  
 
*DRH30110 -NBa-56* 
A BILL TO BE ENTITLED 1 
AN ACT TO ENACT THE CLOSE OUT OPERATIONS PROVIDE EMERGENCY RELIEF 2 
ACT (C.O.O.P.E.R. ACT), TO APPROPRIATE FUNDS FOR DISASTER RECOVERY , 3 
TO IMPOSE AUDITING, REPORTING, AND MONITORING REQUIREMENTS, AND 4 
TO REVISE THE OFFICE OF RECOVERY AND RESILIENCY RESPONSIBILITIES. 5 
The General Assembly of North Carolina enacts: 6 
 7 
PART I. TRANSFER AND APPROPRIATION TO NCORR; REPORTING; AUDITOR 8 
OVERSIGHT 9 
SECTION 1.1.(a) Funding. – There is appropriated from the State Emergency 10 
Response and Disaster Relief Fund (SERDRF) to the Department of Public Safety, Office of 11 
Recovery and Resiliency (NCORR), the sum of two hundred seventeen million dollars 12 
($217,000,000) for the 2025-2026 fiscal year to complete the homeowner recovery projects for 13 
Hurricanes Matthew and Florence. 14 
SECTION 1.1.(b) Reporting Requirements. – According to the following schedule 15 
set forth in this subsection, NCORR shall report to the Joint Legislative Commission on 16 
Governmental Operations (Commission) and the Fiscal Research Division on all funds allocated 17 
to homeowner recovery projects for Hurricanes Matthew and Florence and thereafter shall 18 
regularly report future disbursements of all funds allocated to remaining homeowner recovery 19 
projects as they are disbursed until all homeowner recovery projects are completed. These reports 20 
shall include detailed information on all expenditures, obligations, encumbrances, and associated 21 
Notices to Proceed or other documentation relating to funds appropriated by or received for those 22 
purposes. The reporting schedule is as follows: 23 
(1) Beginning on the first business day of the month after this act becomes law 24 
and continuing on the first business day of each subsequent month until all 25 
funds are disbursed and projects completed, a report detailing the expectations 26 
for that month on all specific items listed in this subsection. 27 
(2) Beginning on the first business day after the fifteenth of the month after this 28 
act becomes law and continuing on the first business day after the fifteenth of 29 
each subsequent month until all funds are disbursed and projects completed, 30 
a report detailing the progress through the month in relation to the stated 31 
expectations in the report submitted preceding it. 32 
(3) Beginning in the second report submitted pursuant to subdivision (1) of this 33 
subsection, a report detailing a 30-day lookback period, including the progress 34 
of measurable outcomes compared to the expectation for the month 35 
immediately preceding it. 36 
H.B. 222
Feb 25, 2025
HOUSE PRINCIPAL CLERK General Assembly Of North Carolina 	Session 2025 
Page 2  	DRH30110-NBa-56 
SECTION 1.1.(c) Prioritization. – NCORR shall prioritize (i) entering into a 1 
memorandum of understanding with the Housing Finance Agency to retrieve eligible funding for 2 
the homeowner recovery program and (ii) spending those funds received from the Housing 3 
Finance Agency for the remaining unmet needs for the homeowner recovery projects consistent 4 
with subsection (a) of this section. 5 
SECTION 1.1.(d) Clawback. – If, after the homeowner recovery projects for 6 
Hurricanes Matthew and Florence are completed, NCORR has remaining funds appropriated for 7 
the program, then those funds shall revert to the Savings Reserve. 8 
SECTION 1.1.(e) Evaluation of Previous Six Months. – Within 30 calendar days of 9 
this act becoming law, NCORR shall reevaluate all persons who were removed, denied, or 10 
otherwise ruled ineligible by NCORR within the past 180 calendar days. If any persons' eligibility 11 
were changed by this review, NCORR shall include this information in the next report due 12 
pursuant to subsection (b) of this section after the review is completed. To the extent that any 13 
persons are deemed eligible for the programs or other assistance, these persons and projects shall 14 
be included in subsequent reporting. 15 
SECTION 1.2.(a) Auditor Oversight. – NCORR shall report to the Office of the 16 
State Auditor (i) all disaster relief funds appropriated in this act, (ii) previous funds appropriated 17 
under S.L. 2024-57, and (iii) any other funds that have been disbursed to NCORR as of the 18 
enactment of this section and thereafter shall regularly report future disbursements of all disaster 19 
relief funds allocated to NCORR for disaster relief as they are disbursed. These reports shall 20 
include detailed information on all expenditures for personnel, administrative expenses, capital, 21 
supplies, and direct aid, and any documents relating to funds appropriated by or received by the 22 
State of North Carolina for disaster relief for Hurricanes Matthew and Florence. 23 
SECTION 1.2.(b) Auditor Reporting Time Line. – NCORR shall send the required 24 
information and documents relating to funds already disbursed to the Office of the State Auditor 25 
as soon as practicable but no later than seven business days after this bill becomes law. 26 
Thereafter, NCORR shall send the required information and documents relating to subsequent 27 
disbursements to the Office of the State Auditor on a weekly basis. 28 
SECTION 1.2.(c) Failure to Report. – If NCORR fails to report expenditures within 29 
the specified time line, the Office of the State Auditor shall notify the Commission. NCORR 30 
shall provide an explanation and accounting of the failure to report expenditures in a timely 31 
manner to the Office of the State Auditor and the Commission. 32 
SECTION 1.2.(d) Audit Requirements. – The State Auditor shall produce a report 33 
of funds expended by NCORR for funds disbursed by NCORR for Hurricanes Matthew and 34 
Florence upon the request of the Commission. The State Auditor shall conduct additional 35 
periodic financial and performance audits of the Division of Emergency Management of the 36 
Department of Public Safety, the Governor's Recovery Office for Western North Carolina, and 37 
any additional financial or performance audits as requested by the General Assembly. The audits 38 
shall include, at a minimum, all areas of examination as prescribed by G.S. 147-64.6. 39 
SECTION 1.2.(e) Public Dashboard. – The State Auditor shall provide a public 40 
online dashboard that compares the amount of funds appropriated by the legislature with the 41 
amount expended by the executive branch for Hurricanes Matthew and Florence relief. 42 
SECTION 1.3. OSBM Monitoring. – OSBM shall perform ongoing financial 43 
monitoring of the Office for the duration of the Office's operations, including funding for 44 
previous, current, and future storm recovery programs. OSBM shall oversee and track the 45 
Office's budget, expenditures, and obligations through OSBM's Office of Internal Audit or 46 
appropriate combination of OSBM staff. 47 
SECTION 1.4. Conflict with Previous Reporting, Auditing, and Monitoring 48 
Requirements. – To the extent any provision of this section conflicts with a previous reporting 49 
requirement under S.L. 2024-51, S.L. 2024-53, or S.L. 2024-57, this act shall supersede those 50 
provisions. 51  General Assembly Of North Carolina 	Session 2025 
DRH30110-NBa-56  	Page 3 
SECTION 1.5. Appropriation to Office of State Fire Marshal. – There is 1 
appropriated from the SERDRF to the Office of the State Fire Marshal the sum of one million 2 
five hundred thousand dollars ($1,500,000) for supplies and equipment needed for an emergency 3 
operations center and new office space. 4 
 5 
PART II. NCORR DISSOLUTION OF RESPONSIBILITY FOR FUTURE STORMS 6 
SECTION 2.1. G.S. 143B-1040 reads as rewritten: 7 
"§ 143B-1040.  Office of Recovery and Resiliency. 8 
… 9 
(c) Notwithstanding any other provision of law, all Community Development Block 10 
Grant Disaster Recovery awards received by the State in response to the declarations and 11 
executive orders described in Section 3.1 of S.L. 2016-124, or in any subsequent federally 12 
declared disasters, shall be administered by the North Carolina Office of Recovery and Resiliency 13 
of the Department of Public Safety, including circumstances where the designated grantee is an 14 
agency other than the North Carolina Office of Recovery and Resiliency." 15 
 16 
PART III. REVERSION AND LIMITATION OF FUNDS 17 
SECTION 3.1.(a) Reversion. – Funds appropriated in this act shall revert to the 18 
Savings Reserve if not expended or encumbered by June 30, 2027. 19 
SECTION 3.1.(b) Receipt of Allocations. – A recipient of State funds under this act 20 
shall use best efforts and take all reasonable steps to obtain alternative funds that cover the losses 21 
or needs for which the State funds are provided, including funds from insurance policies in effect 22 
and available federal aid. State funds paid under this act are declared to be excess over funds 23 
received by a recipient from the settlement of a claim for loss or damage covered under the 24 
recipient's applicable insurance policy in effect or federal aid. Where a recipient is an institution 25 
of higher education or a non-State entity, the requirement regarding alternative funds, and the 26 
calculation of alternative funds received, under this subsection includes seeking private donations 27 
to help cover the losses or needs for which State funds are provided. An agency awarding State 28 
funds for disaster relief shall include a notice to the recipient of the requirements of this 29 
subsection. 30 
SECTION 3.1.(c) Remittance of Funds. – If a recipient obtains alternative funds 31 
pursuant to subsection (b) of this section, the recipient shall remit the funds to the State agency 32 
from which the State funds were received. A recipient is not required to remit any amount in 33 
excess of the State funds provided to the recipient under this act. The State agency shall transfer 34 
these funds to the Savings Reserve. 35 
SECTION 3.1.(d) Contract Requirements. – Any contract or other instrument 36 
entered into by a recipient for receipt of funds under this act shall include the requirements set 37 
forth in subsections (b) and (c) of this section. 38 
SECTION 3.1.(e) Limitation on Powers of Governor. – The Governor may not use 39 
the funds described in this act to make budget adjustments under G.S. 143C-6-4 or to make 40 
reallocations under G.S. 166A-19.40(c). Nothing in this act shall be construed to prohibit the 41 
Governor from exercising the Governor's authority under these statutes with respect to funds 42 
other than those described in this act. 43 
SECTION 3.1.(f) Directive. – The Governor shall ensure that funds allocated in this 44 
act are expended in a manner that does not adversely affect any person's or entity's eligibility for 45 
federal funds that are made available, or that are anticipated to be made available, as a result of 46 
natural disasters. The Governor shall also, to the extent practicable, avoid using State funds to 47 
cover costs that will be, or likely will be, covered by federal funds. 48 
 49 
PART IV. EFFECTIVE DATE 50 
SECTION 4.1. This act is effective when it becomes law. 51