North Carolina 2025-2026 Regular Session

North Carolina House Bill H222 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 2
	3	+	H 1
4	4		HOUSE BILL 222
5		-	~~Committee Substitute Favorable 3/4/25~~
	5	+
6	6
7	7		Short Title: C.O.O.P.E.R. Accountability Act. (Public)
8		-	Sponsors:
9		-	Referred to:
	8	+	Sponsors: Representatives B. Jones, Johnson, Lowery, and Winslow (Primary Sponsors).
	9	+	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
	10	+	Referred to: Judiciary 1, if favorable, Appropriations, if favorable, Rules, Calendar, and
	11	+	Operations of the House
10	12		February 27, 2025
11		-	H222 -v-2
	13	+	H222 -v-1
12	14		A BILL TO BE ENTITLED 1
13	15		AN ACT TO ENACT THE CLOSE OUT OPERATIONS PROVIDE EMERGENCY R ELIEF 2
14	16		ACT (C.O.O.P.E.R. ACT), TO APPROPRIATE FUNDS FOR DISASTER RECOVERY, 3
15		-	TO IMPOSE AUDITING, REPORTING, AND MONIT ORING REQUIREMENTS O N 4
16		-	THE OFFICE OF RECOVERY AND RESILIENCY, AND TO REVISE THE OFFICE OF 5
17		-	RECOVERY AND RESILIENCY'S RESPONSIBILITIES. 6
18		-	The General Assembly of North Carolina enacts: 7
19		-	8
20		-	PART I. TRANSFER AND APPROPRIATION TO NC ORR; REPORTING; AUDI TOR 9
21		-	OVERSIGHT 10
22		-	SECTION 1.1.(a) Funding. – There is appropriated from the State Emergency 11
23		-	Response and Disaster Relief Fund (SERDRF) to the Department of Public Safety, Office of 12
24		-	Recovery and Resiliency (NCORR), the sum of two hundred seventeen million dollars 13
25		-	($217,000,000) for the 2025-2026 fiscal year to complete the homeowner recovery projects for 14
26		-	Hurricanes Matthew and Florence. 15
27		-	SECTION 1.1.(b) Reporting Requirements. – According to the following schedule 16
28		-	set forth in this subsection, NCORR shall report to the Joint Legislative Commission on 17
29		-	Governmental Operations (Commission) and the Fiscal Research Division on all funds allocated 18
30		-	to homeowner recovery projects for Hurricanes Matthew and Florence and thereafter shall 19
31		-	regularly report future disbursements of all funds allocated to remaining homeowner recovery 20
32		-	projects as they are disbursed until all homeowner recovery projects are completed. These reports 21
33		-	shall include detailed information on all expenditures, obligations, encumbrances, and associated 22
34		-	Notices to Proceed or other documentation relating to funds appropriated by or received for those 23
35		-	purposes. The reporting schedule is as follows: 24
36		-	(1) Beginning on the first business day of the month after this act becomes law 25
37		-	and continuing on the first business day of each subsequent month until all 26
38		-	funds are disbursed and projects completed, a report detailing the expectations 27
39		-	for that month on all specific items listed in this subsection. 28
40		-	(2) Beginning on the first business day after the fifteenth of the month after this 29
41		-	act becomes law and continuing on the first business day after the fifteenth of 30
42		-	each subsequent month until all funds are disbursed and projects completed, 31
43		-	a report detailing the progress through the month in relation to the stated 32
44		-	expectations in the report submitted preceding it. 33
45		-	(3) Beginning in the second report submitted pursuant to subdivision (1) of this 34
46		-	subsection, a report detailing a 30-day lookback period, including the progress 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 222-Second Edition
	17	+	TO IMPOSE AUDITING, REPORTING, AND MONITORING REQUIREMENTS, AND 4
	18	+	TO REVISE THE OFFICE OF RECOVERY AND RESILIENCY RESPONSIBILITIES. 5
	19	+	The General Assembly of North Carolina enacts: 6
	20	+	7
	21	+	PART I. TRANSFER AND APPROPRIATION TO NC ORR; REPORTING; AUDI TOR 8
	22	+	OVERSIGHT 9
	23	+	SECTION 1.1.(a) Funding. – There is appropriated from the State Emergency 10
	24	+	Response and Disaster Relief Fund (SERDRF) to the Department of Public Safety, Office of 11
	25	+	Recovery and Resiliency (NCORR), the sum of two hundred seventeen million dollars 12
	26	+	($217,000,000) for the 2025-2026 fiscal year to complete the homeowner recovery projects for 13
	27	+	Hurricanes Matthew and Florence. 14
	28	+	SECTION 1.1.(b) Reporting Requirements. – According to the following schedule 15
	29	+	set forth in this subsection, NCORR shall report to the Joint Legislative Commission on 16
	30	+	Governmental Operations (Commission) and the Fiscal Research Division on all funds allocated 17
	31	+	to homeowner recovery projects for Hurricanes Matthew and Florence and thereafter shall 18
	32	+	regularly report future disbursements of all funds allocated to remaining homeowner recovery 19
	33	+	projects as they are disbursed until all homeowner recovery projects are completed. These reports 20
	34	+	shall include detailed information on all expenditures, obligations, encumbrances, and associated 21
	35	+	Notices to Proceed or other documentation relating to funds appropriated by or received for those 22
	36	+	purposes. The reporting schedule is as follows: 23
	37	+	(1) Beginning on the first business day of the month after this act becomes law 24
	38	+	and continuing on the first business day of each subsequent month until all 25
	39	+	funds are disbursed and projects completed, a report detailing the expectations 26
	40	+	for that month on all specific items listed in this subsection. 27
	41	+	(2) Beginning on the first business day after the fifteenth of the month after this 28
	42	+	act becomes law and continuing on the first business day after the fifteenth of 29
	43	+	each subsequent month until all funds are disbursed and projects completed, 30
	44	+	a report detailing the progress through the month in relation to the stated 31
	45	+	expectations in the report submitted preceding it. 32
	46	+	(3) Beginning in the second report submitted pursuant to subdivision (1) of this 33
	47	+	subsection, a report detailing a 30-day lookback period, including the progress 34 General Assembly Of North Carolina Session 2025
	48	+	Page 2 House Bill 222-First Edition
48	49		of measurable outcomes compared to the expectation for the month 1
49	50		immediately preceding it. 2
50	51		SECTION 1.1.(c) Prioritization. – NCORR shall prioritize (i) entering into a 3
51	52		memorandum of understanding with the Housing Finance Agency to retrieve eligible funding for 4
52	53		the homeowner recovery program and (ii) spending those funds received from the Housing 5
53	54		Finance Agency for the remaining unmet needs for the homeowner recovery projects consistent 6
54	55		with subsection (a) of this section. 7
55	56		SECTION 1.1.(d) Clawback. – If, after the homeowner recovery projects for 8
56	57		Hurricanes Matthew and Florence are completed, NCORR has remaining funds appropriated for 9
57	58		the program, then those funds shall revert to the Savings Reserve. 10
58	59		SECTION 1.1.(e) Evaluation of Previous Six Months. – Within 30 calendar days of 11
59	60		this act becoming law, NCORR shall reevaluate all persons who were removed, denied, or 12
60	61		otherwise ruled ineligible by NCORR within the past 180 calendar days. If any persons' eligibility 13
61	62		were changed by this review, NCORR shall include this information in the next report due 14
62	63		pursuant to subsection (b) of this section after the review is completed. To the extent that any 15
63	64		persons are deemed eligible for the programs or other assistance, these persons and projects shall 16
64	65		be included in subsequent reporting. 17
65	66		SECTION 1.2.(a) Auditor Oversight. – NCORR shall report to the Office of the 18
66	67		State Auditor (i) all disaster relief funds appropriated in this act, (ii) previous funds appropriated 19
67	68		under S.L. 2024-57, and (iii) any other funds that have been disbursed to NCORR as of the 20
68	69		enactment of this section and thereafter shall regularly report future disbursements of all disaster 21
69	70		relief funds allocated to NCORR for disaster relief as they are disbursed. These reports shall 22
70	71		include detailed information on all expenditures for personnel, administrative expenses, capital, 23
71	72		supplies, and direct aid, and any documents relating to funds appropriated by or received by the 24
72	73		State of North Carolina for disaster relief for Hurricanes Matthew and Florence. 25
73	74		SECTION 1.2.(b) Auditor Reporting Time Line. – NCORR shall send the required 26
74	75		information and documents relating to funds already disbursed to the Office of the State Auditor 27
75	76		as soon as practicable but no later than seven business days after this bill becomes law. 28
76	77		Thereafter, NCORR shall send the required information and documents relating to subsequent 29
77	78		disbursements to the Office of the State Auditor on a weekly basis. 30
78	79		SECTION 1.2.(c) Failure to Report. – If NCORR fails to report expenditures within 31
79	80		the specified time line, the Office of the State Auditor shall notify the Commission. NCORR 32
80	81		shall provide an explanation and accounting of the failure to report expenditures in a timely 33
81	82		manner to the Office of the State Auditor and the Commission. 34
82	83		SECTION 1.2.(d) Audit Requirements. – The State Auditor shall produce a report 35
83	84		of funds expended by NCORR for funds disbursed by NCORR for Hurricanes Matthew and 36
84	85		Florence upon the request of the Commission. The State Auditor shall conduct additional 37
85	86		periodic financial and performance audits of the Division of Emergency Management of the 38
86	87		Department of Public Safety, the Governor's Recovery Office for Western North Carolina, and 39
87	88		any additional financial or performance audits as requested by the General Assembly. The audits 40
88	89		shall include, at a minimum, all areas of examination as prescribed by G.S. 147-64.6. 41
89	90		SECTION 1.2.(e) Public Dashboard. – The State Auditor shall provide a public 42
90	91		online dashboard that compares the amount of funds appropriated by the legislature with the 43
91	92		amount expended by the executive branch for Hurricanes Matthew and Florence relief. 44
92	93		SECTION 1.3. OSBM Monitoring. – OSBM shall perform ongoing financial 45
93		-	monitoring of ~~NCORR~~ for the duration of ~~NCORR~~'s operations, including funding for ~~previous,~~ 46
94		-	current, and future storm recovery programs. OSBM shall oversee and track ~~NCORR's budget,~~ 47
95		-	expenditures, and obligations through OSBM's Office of Internal Audit or ~~appropriate~~ 48
96		-	combination of OSBM staff. 49
	94	+	monitoring of the Office for the duration of the Office's operations, including funding for 46
	95	+	previous, current, and future storm recovery programs. OSBM shall oversee and track the 47
	96	+	Office's budget, expenditures, and obligations through OSBM's Office of Internal Audit or 48
	97	+	appropriate combination of OSBM staff. 49
97	98		SECTION 1.4. Conflict with Previous Reporting, Auditing, and Monitoring 50
98	99		Requirements. – To the extent any provision of this section conflicts with a previous reporting 51 General Assembly Of North Carolina Session 2025
99		-	House Bill 222-~~Second~~ Edition Page 3
	100	+	House Bill 222-First Edition Page 3
100	101		requirement under S.L. 2024-51, S.L. 2024-53, or S.L. 2024-57, this act shall supersede those 1
101	102		provisions. 2
102	103		SECTION 1.5. Appropriation to Office of State Fire Marshal. – There is 3
103	104		appropriated from the SERDRF to the Office of the State Fire Marshal the sum of one million 4
104	105		five hundred thousand dollars ($1,500,000) for supplies and equipment needed for an emergency 5
105	106		operations center and new office space. 6
106	107		7
107	108		PART II. NCORR DISSOLUTION OF RESPONSIBILITY FOR FUTURE STOR MS 8
108	109		SECTION 2.1. G.S. 143B-1040 reads as rewritten: 9
109	110		"§ 143B-1040. Office of Recovery and Resiliency. 10
110	111		… 11
111	112		(c) Notwithstanding any other provision of law, all Community Development Block 12
112	113		Grant Disaster Recovery awards received by the State in response to the declarations and 13
113	114		executive orders described in Section 3.1 of S.L. 2016-124, or in any subsequent federally 14
114	115		declared disasters, shall be administered by the North Carolina Office of Recovery and Resiliency 15
115	116		of the Department of Public Safety, including circumstances where the designated grantee is an 16
116	117		agency other than the North Carolina Office of Recovery and Resiliency." 17
117	118		18
118	119		PART III. REVERSION AND LIMITATION OF FUNDS 19
119	120		SECTION 3.1.(a) Reversion. – Funds appropriated in this act shall revert to the 20
120	121		Savings Reserve if not expended or encumbered by June 30, 2027. 21
121	122		SECTION 3.1.(b) Receipt of Allocations. – A recipient of State funds under this act 22
122	123		shall use best efforts and take all reasonable steps to obtain alternative funds that cover the losses 23
123	124		or needs for which the State funds are provided, including funds from insurance policies in effect 24
124	125		and available federal aid. State funds paid under this act are declared to be excess over funds 25
125	126		received by a recipient from the settlement of a claim for loss or damage covered under the 26
126	127		recipient's applicable insurance policy in effect or federal aid. Where a recipient is an institution 27
127	128		of higher education or a non-State entity, the requirement regarding alternative funds, and the 28
128	129		calculation of alternative funds received, under this subsection includes seeking private donations 29
129	130		to help cover the losses or needs for which State funds are provided. An agency awarding State 30
130	131		funds for disaster relief shall include a notice to the recipient of the requirements of this 31
131	132		subsection. 32
132	133		SECTION 3.1.(c) Remittance of Funds. – If a recipient obtains alternative funds 33
133	134		pursuant to subsection (b) of this section, the recipient shall remit the funds to the State agency 34
134	135		from which the State funds were received. A recipient is not required to remit any amount in 35
135	136		excess of the State funds provided to the recipient under this act. The State agency shall transfer 36
136	137		these funds to the Savings Reserve. 37
137	138		SECTION 3.1.(d) Contract Requirements. – Any contract or other instrument 38
138	139		entered into by a recipient for receipt of funds under this act shall include the requirements set 39
139	140		forth in subsections (b) and (c) of this section. 40
140	141		SECTION 3.1.(e) Limitation on Powers of Governor. – The Governor may not use 41
141	142		the funds described in this act to make budget adjustments under G.S. 143C-6-4 or to make 42
142	143		reallocations under G.S. 166A-19.40(c). Nothing in this act shall be construed to prohibit the 43
143	144		Governor from exercising the Governor's authority under these statutes with respect to funds 44
144	145		other than those described in this act. 45
145	146		SECTION 3.1.(f) Directive. – The Governor shall ensure that funds allocated in this 46
146	147		act are expended in a manner that does not adversely affect any person's or entity's eligibility for 47
147	148		federal funds that are made available, or that are anticipated to be made available, as a result of 48
148	149		natural disasters. The Governor shall also, to the extent practicable, avoid using State funds to 49
149	150		cover costs that will be, or likely will be, covered by federal funds. 50
150	151		51 General Assembly Of North Carolina Session 2025
151		-	Page 4 House Bill 222-~~Second~~ Edition
	152	+	Page 4 House Bill 222-First Edition
152	153		PART IV. EFFECTIVE DATE 1
153	154		SECTION 4.1. This act is effective when it becomes law. 2