Policy Updates & Hurricane Helene Relief Initiatives

With Hurricane Helene's impact still affecting Western North Carolina, significant measures have been taken by state legislators to provide relief and support to impacted communities.

Hurricane Helene Relief Bill Passed

On Wednesday, both the North Carolina Senate and House of Representatives unanimously passed H.B. 149, the initial hurricane relief bill. Governor Roy Cooper signed it into law, which includes:

• Establishment of Disaster Recovery Fund: The bill creates the Hurricane Helene Disaster Recovery Fund with an appropriation of $273 million. This initial funding primarily supports the state match for Federal Emergency Management Agency (FEMA) programs, ensuring that areas in western North Carolina impacted by the hurricane will have access to necessary FEMA support in the coming weeks and months. Additional state funding is expected as the immediate and long-term needs of affected communities become clearer.

• Extension of State of Emergency: The state of emergency declared by Governor Cooper on September 25 has been extended through March 1, 2025. Further extensions may be considered next year.

• Regulatory Relief for Nonprofits: The bill prevents the NC Secretary of State from dissolving any nonprofit, for-profit business, or limited liability company in the 25 affected counties for non-compliance with state corporation laws until at least March 1, 2025. This regulatory relief applies to nonprofits in a similar manner as for-profit businesses.

NC Lawmakers to Reconvene to plan Support for Businesses Impacted by Hurricane Helene

North Carolina lawmakers will focus on Hurricane Helene relief and recovery in the upcoming weeks. The NC General Assembly will reconvene in Raleigh for a one-day session next Wednesday, where they might pass initial hurricane relief legislation. If necessary, the session could be extended or another session added later this month.

As the immediate and long-term needs become clearer, more relief measures are expected to be discussed during the November 19-22 mini-session, in December, and throughout the 2024 legislative session.

With over $4.75 billion in reserve funds, North Carolina has the financial capacity to provide a great deal of assistance to the communities that have been ravaged by Hurricane Helene.

Here’s how your business can help and what to look out for in upcoming legislation:

1. Advocate for Comprehensive Relief: The NC General Assembly is expected to provide financial assistance and extend filing deadlines for businesses affected by the hurricane. It’s essential that this relief is also fully extended to nonprofits. Nonprofits play a crucial role in disaster response, and their inclusion in state relief packages will ensure they can continue serving affected communities without added financial strain.

2. Promote Grants Over Loans: As the legislature considers funding options, businesses should advocate for relief packages that prioritize grants over loans to help with rebuilding. Grants provide essential financial support without creating long-term debt burdens for businesses. Loans, while useful, can add financial pressure at a time when recovery is still so uncertain.

3. Contribute to Relief Efforts: Encourage your company to contribute financially to disaster relief or organize volunteer efforts to support local nonprofits. You can find trusted organizations through the North Carolina Department of Public Safety, and your efforts can directly impact the recovery of affected communities.

By advocating for legislative support that eases financial burdens and ensures fair treatment for businesses, your company can help shape an equitable recovery for North Carolina.

POLICY UPDATES - Governor Cooper Vetoes State Budget Adjustments

Governor Roy Cooper vetoed H.B. 10, a bill that proposes adjustments to the state budget for FY2024-25, effective from July 1. The NC Senate and House of Representatives approved the bill last week, which includes funding for several key priorities:

• Opportunity Scholarship Program: An additional $463 million will clear the 55,000-family waitlist and provide more future funding for private school vouchers.

• Education Savings Account Program: An extra $25 million will clear the waitlist for families of children with special needs.

• Funding for Public Schools and Community Colleges: Increased funding will cover higher enrollment costs, though no additional pay raises beyond what was already received on July 1 for teachers or state employees were included.

• Medicaid Funding: $377 million in new funds will address increased enrollment and service costs, this was about $81 million less than requested by the NC Department of Health and Human Services to cover Medicaid expenses for the current fiscal year.

• Broadband Access in Rural Counties: Up to $190 million will be allocated to enhance broadband access in rural areas. This would provide critical infrastructure improvements to unserved and underserved areas, as well as, enhance connectivity and access to digital markets, especially in rural areas.

Monitoring and Updates:

• Businesses should stay informed about the potential opportunities and changes from this legislation.

• Legislators could vote to override Governor Cooper’s veto during their next (one-day) session on October 9.

POLICY UPDATES - OVERTIME SALARIES, SMALL BUSINESS SURVEY, SPENDING BILL

This week, the North Carolina General Assembly overrode Governor Roy Cooper’s vetoes on five significant bills. These newly enacted laws address a variety of issues, including changes to housing laws, electronic notary processes, and rules around small claims courts and evictions.

One of the most debated bills (H.B. 556) prevents local governments from protecting against rent discrimination based on income source, which critics argue will make it harder for low-income families, seniors, and people with disabilities to find affordable rental housing.

Other vetoed bills include regulations on off-road vehicles operating on state highways and updates to state building codes, which could affect electric vehicle infrastructure.

The Role of Businesses in Elections

Small businesses play a crucial role in elections, often serving as the backbone of the economy and vibrant community hubs. In this newsletter, we explore real-world studies that highlight the deep connection between small businesses and the electoral process. With owners and employees often being active voters, small businesses can have a significant impact on local and national election participation. Dive into our case studies to see the relationship between business and civic engagement.

Voting 101: Everything You Need to Know to Vote in NC

As we approach November, it’s important to refresh ourselves on different aspects of voting in NC and how they may affect you. Voting in an election is one of the most significant things we can do as Americans, so ensure you know how to conduct your civic duty when November 5th arrives. The North Carolina State Board of Elections has provided numerous web pages and guides on the different facets of voting. This week, we’ve summarized some key information to make your voting experience easy.

Gov. Cooper Signs Bill to Avert Childcare Funding Cliff

Governor Cooper signed S.B.357 into law to prevent future childcare funding issues resulting from the General Assembly’s failure to agree on an update to the state’s budget. This law will allow more workers to stay in the workforce, which is good news for small companies that are looking for skilled employees. This bill also updates the current Operations Appropriations Act of 2023. S.B.357 and provides a one-time $65.7 million in childcare stabilization grants over the next two months. 

The limited nature of the funding from S.B.357 means that if the budget is not agreed upon by September, another one-time funding bill will be required to keep the childcare industry afloat.

NCSBC will continue to update you on the progress of childcare funding in North Carolina and the overall status of the state’s budget.

New State Budget Not Approved Before Adjournment

With the adjournment of the current session for the NC General Assembly, the highly-discussed FY 24-25 budget bill still needs to be passed in both chambers. If passed, this budget would update last year’s FY 24-25 budget bill. It includes numerous financing adjustments to the childcare and education sectors. It would also impact government job structures. The main areas of difference between the House and Senate were:

• Funding for childcare stabilization grants. Temporary federal funding for childcare providers expires on Monday, July 1st, so this funding would approve two months of temporary funding from the state to cover these losses.

• Funding for families on the Opportunity Scholarships waiting list. There are currently 54,800 families on this list. This funding hinges on lawmaker's willingness to allocate state funds towards expanding voucher program for private schools.

The General Assembly will have the opportunity to vote on the budget bill during their returning sessions, but they will likely do so in late summer at the earliest. The current state budget remains in effect until a new one is approved.

Mask Restriction Bill Vetoed by Governor Cooper

This bill (H.B.237), which would make controversial changes to the law regarding facial coverings, faced criticism due to an unrelated campaign finance rider added to the document. Before the pandemic, wearing a face covering in public was illegal, but rules were suspended to allow face coverings for public health purposes in light of the pandemic. Now, members are looking to re-solidify the rules, allowing a thin exception for medical masks. However, when undergoing adjustments to allow a medical mask exception, the rider for campaign finance was added. 

Governor Roy Cooper stated that the bill “creates a gaping loophole for secret, unlimited campaign money in the middle of an election year” and “allows anonymous out-of-state billionaires to flood NC with campaign contributions.” Essentially, it will enable private donors from outside NC to donate to candidates through political organizations. Cooper also cited the bill as an attempt to “rescue extreme right-wing candidates.” This is one of several reasons for the highly partisan split on this legislation. 

Many expected Cooper to veto the bill, and it’s likely the GOP super majority will vote to pass the legislation anyway. Still, it is important to note that they have not yet voted to override either of the Governor’s previous two vetoes this year. The House and Senate go into recess in July, so the window for a veto is quickly shrinking.

White House Announces New Resources Available For Climate-Focused Businesses

In May, the White House released a new set of materials that details the available capital options for small-to-medium climate businesses. The Climate Capital Guidebook simplifies finding and understanding the various climate programs introduced through recent legislation, such as the Bipartisan Infrastructure Act and the Inflation Reduction Act. These programs include cooperative agreements, grants, loans, and loan guarantees. The federal funding available applies to both start-up and established businesses. 

This guidebook aims to streamline the process for climate businesses to take full advantage of all recent opportunities that may have been obscured in larger legislation. It adds to the existing guidebooks for federal climate funding while including prominent information in those copies. The 24 most applicable programs are listed at the beginning of the guidebook.

Public Mask Bill Also Includes Change to Campaign Finance Law

The final version of the public mask bill approved by the Senate yesterday includes a new provision that will allow certain outside political groups to contribute more money to influence North Carolina elections. Specifically, the bill enables political organizations created under Section 527 of the Internal Revenue Code to make unlimited donations to political parties in North Carolina.

If the bill becomes law, it could bring a significant amount of outside money into North Carolina elections, potentially making what was expected to be a quiet election year much more dynamic. This influx of funds may lead some donors to shift their contributions from charitable nonprofits to partisan political causes, and could also cause politicians to focus more on polarizing political ad campaigns rather than important policy issues that affect nonprofits and small businesses.

Lawsuit Filed in Federal Court Challenging DOL Overtime Rule

On Wednesday, several businesses and business groups filed a lawsuit in a federal court in Texas against the U.S. Department of Labor's new overtime rule. This rule states that most employees earning less than $58,656 per year will soon be eligible for overtime pay, regardless of their current classification as executive, administrative, or professional workers.

Legislative leaders have several options to consider on how to spend the $1 billion surplus

North Carolina’s budget surplus fell $430 million short of the original projection. State budget officials originally estimated the state would have an approximately $1.4 billion surplus for the biennial budget, which combines FY2023-24 and FY2024-25. However, after taxes were collected in April, the surplus was reduced to roughly $1 billion. This means that state legislators will have nearly half a billion dollars less in funds available as they consider adjustments to the state budget for FY2024-25.

May 2024 Policy Roundup

The NC General Assembly’s short session hit its stride as it rounds its third week in session. During the first two weeks, lawmakers scrambled to meet the filing deadline and introduced more than 260 new bills. This week, as the House and Senate began to vote on substantive legislation, the pace slowed as advocacy organizations and associations held annual lobbying days, receptions, and breakfasts. For now, the legislature is still on schedule to adjourn in early July.

Proposed Redistricting Maps

The NC Legislative maps were released this week. You can see the difference between current maps with 7 to 7 split evenly between Democrats and Republicans and the two proposed maps with a 10-3-1 or 10 to 4 split in favor of Republicans. 

Medicaid Expansion Signed Into Law

On Monday March 27th, Governor Roy Cooper signed into law a bill (H.B. 76) that will provide health coverage for about 600,000 North Carolinians in the health coverage gap who have incomes too high to qualify for Medicaid but too low to receive health care subsidies under the Affordable Care Act marketplace. Medicaid expansion will begin in North Carolina after the federal government approves North Carolina’s Medicaid expansion plan and a state budget for FY 2023-24 is in place

Record Nominees for Business Sustainability Awards

We are excited to announce that NCBC received a record number of nominees for the 2023 Leadership in Business Sustainability Awards. These nominees are the trailblazers in the adoption of stakeholder capitalism. This shows the rapid growth of sustainable businesses in North Carolina and highlights all the entrepreneurs working to bring about change.

Business as a Force for Good

Declining confidence in institutions, the proliferation of certification programs, and confusion driven by corporate greenwashing make it harder for businesses that do the right thing to stand out. This is where trusted third-party validation, such as B Corp Certification, plays an important role.

People looking to shop and work at purpose-driven businesses know B Corps are taking meaningful actions to improve their social and environmental impact. As shared in this summary of new research and key findings, B Corp values continue to gain importance among customers and workers, and companies that demonstrate purpose through credible action are more likely to create strong and lasting connections.

Celebrating Best for the World All Around The Globe

NCBC Congratulates business member Larry's Coffee on being named B Lab Global's 2022 "Best for the World" along with three additional North Carolina B Corps - All Green Recycling/Charlotte, Miel Design Studio/Durham and Thread Talk/Charlotte.

B Corporation.net list more than 70 Certified NC B Corps. NC B Corps vary in industry, size, services and location. From solopreneur to large corporations.

Time to Vote Small Business Toolkit

2022 NC Midterm Election Primer: Important Info and Upcoming Dates; Make Sure Your Vote Is Counted!

This November, North Carolina will have its 2022 midterm election. Although it is an off-cycle year, this election is still crucially important. With issues like inflation, personal freedoms, and the economy dominating the minds of voters across the country, voting is the most important way to make sure that candidates and representatives hear your voice on these crucial issues and work to make our country stronger and united. This guide will take you through important dates, how to find your candidates and their platforms, how to get involved in the election process, and questions to ask candidates about their platforms.