A BILL TO BE ENTITLED
AN ACT TO PROVIDE ADDITIONAL APPROPRIATIONS AND EXTEND REGULATORY FLEXIBILITY FOR COMMUNITIES AND CITIZENS IMPACTED BY HURRICANE HELENE.
The General Assembly of North Carolina enacts:

PART I. TITLE and scope OF ACT
SECTION 1.1.  Title. – This act shall be known as "The Disaster Recovery Act of 2025 – Part I."
SECTION 1.2.  Maximum Amounts; Effectuate Savings. – 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.
SECTION 1.3.  Scope. – Unless otherwise provided, Part II of this act applies to the North Carolina counties in the affected area, as defined in Section 1.4 of this act.
SECTION 1.4.  Definitions. – Unless otherwise provided, the following definitions apply in this act:
(1)	Affected area. – The counties designated before, on, or after the effective date of this act under a major disaster declaration by the President of the United States under the Stafford Act (P.L. 93‑288) as a result of Hurricane Helene.
(2)	CDBG‑DR. – Community Development Block Grant – Disaster Recovery.
(3)	FEMA. – The Federal Emergency Management Agency.
(4)	Helene Fund. – The Hurricane Helene Disaster Recovery Fund established in Section 4.1 of S.L. 2024‑51.
(5)	NCEM. – The Division of Emergency Management of the Department of Public Safety.
(6)	OSBM. – The Office of State Budget and Management.
(7)	SERDRF. – The State Emergency Response and Disaster Relief Fund established in G.S. 166A‑19.42.

PART II. disaster recovery appropriation, transfer, and programs
SECTION 2.1.  Transfer. – The State Controller shall transfer the sum of two hundred seventy‑five million dollars ($275,000,000) from the SERDRF to the Helene Fund.
SECTION 2.2.  Appropriation. – There is appropriated from the Helene Fund the sum of five hundred million dollars ($500,000,000) in nonrecurring funds, as follows:
(1)	Notwithstanding G.S. 143B‑1040(c), one hundred twenty‑five million dollars ($125,000,000) to the Department of Commerce, Division of Community Revitalization, for the Home Reconstruction and Repair Program (Program). The Program shall be CDBG‑DR compliant and consistent with the United States Department of Housing and Urban Development's Universal Notice in 90 FR 1754 to ensure maximum reimbursement from federal funds when those funds become available.
(2)	Seventy‑five million dollars ($75,000,000) to the Department of Agriculture and Consumer Services, Division of Soil & Water Conservation, for the following purposes:
a.	Natural restoration projects that enable farmers in the affected area to resume production and protect communities against additional flood damage. Eligible projects include stream debris removal, streambank stabilization, stream restoration, cropland restoration, farm road repair, and reconstruction of best management practices.
b.	Cost‑share, engineering, and technical assistance for eligible projects.
The Department may use these funds across programs to maximize impact and federal funding.
(2a)	Seventy‑five million dollars ($75,000,000) to the Department of Agriculture and Consumer Services for the Hurricane Helene Agricultural Crop Loss Program in accordance with Section 2.4 of this act.
(3)	One hundred million dollars ($100,000,000) to NCEM for the Private Road and Bridge Repair and Replacement Program in accordance with Section 2.3 of this act.
(4)	Fifty‑five million dollars ($55,000,000) for the Small Business Infrastructure Grant Program in accordance with Section 2.5 of this act.
(5)	Twenty million dollars ($20,000,000) to OSBM to distribute to State agencies and units of local government for debris removal unmet needs. The Governor's Recovery Office for Western North Carolina (GROW‑NC) and NCEM shall assist OSBM in coordinating the debris removal with relevant State agencies and local stakeholders. OSBM shall prioritize using these funds to address identified gaps in debris cleanup not met by other federal and State programs.
(6)	Ten million dollars ($10,000,000) to NCEM to provide grants to any member organization of Volunteer Organizations Active in Disaster (VOADs) assisting with disaster response and recovery efforts in the affected area.
(7)	Ten million dollars ($10,000,000) to the Office of the State Fire Marshal to provide funds for repairs of damage to fire stations and to buildings or vehicles used by rescue squads or emergency medical service providers. The Office of the State Fire Marshal shall disburse any remaining funds in equal amounts to all fire departments in the affected area to purchase equipment or make capital improvements to assist with readiness for future emergency response. The Office of the State Fire Marshal may use up to two hundred fifty thousand dollars ($250,000) of the funds appropriated in this subdivision for administrative costs related to disbursing these grants.
(8)	Ten million dollars ($10,000,000) to the Department of Health and Human Services, Division of Social Services, to supplement rental assistance payments provided in accordance with Section 4B.7 of S.L. 2024‑53.
(9)	Five million dollars ($5,000,000) to the Department of Commerce for the nonprofit corporation with which the Department contracts pursuant to G.S. 143B‑431.01(b) for targeted media campaigns to encourage both in‑State and out‑of‑state tourists to return to areas impacted by Hurricane Helene in 2025 and for grants to local tourism offices in the affected area for the activities of those offices and for development of a coordinated market strategy.
(10)	Fifteen million dollars ($15,000,000) to Golden L.E.A.F. (Long‑Term Economic Advancement Foundation), Inc. (Golden LEAF), a nonprofit corporation, to be allocated to nonprofit organizations located in the affected area. A nonprofit organization receiving a grant from Golden LEAF pursuant to this section shall use those funds to provide grants for small business revitalization or other disaster recovery efforts. In selecting recipients, Golden LEAF shall prioritize nonprofit organizations with demonstrated expertise in small business revitalization. Any subgrant made by a nonprofit organization pursuant to this subdivision shall not exceed fifty thousand dollars ($50,000).
SECTION 2.3.(a)  Private Road and Bridge Repair and Replacement Program. – The Private Road and Bridge Repair and Replacement Program (Program) is established within NCEM for the repair and replacement of private roads and bridges damaged or destroyed by Hurricane Helene. NCEM shall consult with the Department of Transportation in administering the Program and shall develop criteria and an application process to select private roads and bridges eligible for repair or replacement consistent with this subsection. NCEM shall prioritize applications for the repair and replacement of private roads or bridges that provide the sole option for ingress and egress for (i) emergency services to a residential property that is occupied by the owner for more than six months of the calendar year, (ii) multiple residential homes, or (iii) recreation or commercial facilities. These funds may be used for program costs incurred for the engineering, design, and construction of private roads and bridges, funding to nonprofit organizations supporting bridge repairs, and may also be used to provide technical support and assistance for individuals and local governments to comply with no‑rise certification requirements required by FEMA under the National Flood Insurance Program.
SECTION 2.3.(b)  Federal Funding. – If federal assistance or alternative funds are available for the same purposes in subsection (a) of this section, NCEM shall not duplicate efforts or benefits and take all reasonable steps to obtain that federal assistance or alternative funds prior to obligating funds for the Program with State funds.
SECTION 2.3.(c)  Reporting Requirement. – NCEM shall annually report to the Joint Legislative Emergency Management Oversight Committee and the Fiscal Research Division beginning on June 30, 2025, and ending on June 30, 2029, on the Program. The report shall include, at a minimum, all of the following:
(1)	The criteria used for awarding funds.
(2)	The locations of any roads or bridges replaced.
(3)	The average grant amount requested and disbursed.
(4)	The number of projects requested, declined, and funded.
(5)	The identification of unmet needs remaining at the end of each fiscal year for private road or bridge repair or replacement.

HURRICANE HELENE AGRICULTURAL CROP LOSS PROGRAM
SECTION 2.4.(a)  Hurricane Helene Agricultural Crop Loss Program. – The Hurricane Helene Agricultural Crop Loss Program (Program) is established within the Department of Agriculture and Consumer Services (Department). The Program shall be used to provide financial assistance to farmers affected by Hurricane Helene. The Department may use up to one percent (1%) of funds allocated for the Program for administrative purposes. To be eligible for financial assistance for losses of agricultural commodities, a person must satisfy all of the following criteria:
(1)	The person experienced a verifiable loss of agricultural commodities or farm infrastructure as a result of Hurricane Helene, and the person's farm is located in an affected area.
(2)	The agricultural commodity was planted but not harvested on or before September 24, 2024, or, for aquaculture commodities, the commodities were being raised on or before September 24, 2024.
SECTION 2.4.(b)  Verification of Loss. – A person seeking financial assistance for losses of agricultural commodities under the Program shall submit to the Department a Form 578 on file with the USDA Farm Service Agency or a form provided by the Department for reporting acreage or plantings of crops or reporting infrastructure damage or loss that is not typically reported on Form 578, along with any other documentation deemed appropriate by the Department, no later than 30 days after this section becomes effective. For nursery crops, fruit‑bearing trees and bushes, and specialty crops where the survival level is not immediately known, the Department may extend this deadline by an additional 30 days, upon written request by the person received no later than 30 days after this section becomes effective and upon approval by the Department. A person receiving assistance under this Program must provide a signed affidavit, under penalty of perjury, certifying that each fact of the loss presented by the person is accurate.
SECTION 2.4.(c)  Eligibility. – To be eligible for financial assistance for losses of livestock or poultry, a person must first qualify for and receive payment through the USDA Livestock Indemnity Program and be a participant in a livestock or poultry indemnity program administered by the USDA Farm Service Agency.
SECTION 2.4.(d)  Documentation. – A person seeking financial assistance for losses of livestock or poultry shall submit documentation of loss and indemnity received from the USDA Livestock Indemnity Program, along with any other documentation deemed appropriate by the Department, to the Department no later than 30 days after this section becomes effective. The Department may extend this deadline by an additional 30 days, upon written request by the person received no later than 30 days after this section becomes effective and upon approval by the Department. A person receiving assistance under this Program must provide a signed affidavit, under penalty of perjury, certifying that each fact of the loss presented by the person is accurate.
SECTION 2.4.(e)  Criteria. – The Department shall administer the financial assistance program authorized by this section in accordance with the following criteria:
(1)	In determining the payment calculation for agricultural commodities, the Department shall use a formula based on acreage, county loss estimates, USDA National Agricultural Statistics Service averages, and any other measure the Department deems appropriate. Funds shall be distributed based on county averages for yields and State averages for price. Calculations shall be based on county or State averages in price, whichever the Department determines is appropriate.
(2)	The payment calculation for livestock and poultry shall be based on twelve and one‑half percent (12.5%) of the total loss reported to the USDA Livestock Indemnity Program.
(3)	The Department shall gather all claim information, except from those applicants granted a deadline extension, no later than 30 days after this section becomes law. The Department shall, as closely as possible, estimate the amount of the funds needed to be held in reserve for payments related to losses of livestock, poultry, nursery, bush, tree, and specialty crops for which losses will not be fully known or calculated. The Department shall set aside funds as it deems appropriate based on the estimated percentage of these losses.
(4)	Payments made under this Program shall be made to the person who filed the Form 578 or Department form for claims related to agricultural commodity losses or the person who received payment from the USDA Livestock Indemnity Program for claims related to livestock or poultry losses.
(5)	The Department shall develop a formula to determine the payment calculation for farm infrastructure damage or loss using measures the Department deems appropriate. The Department shall consider any other available insurance claims that may be available to the applicant when developing the formula under this subdivision.
SECTION 2.4.(f)  Audit. – The Department may audit the financial and other records of each recipient of funds in order to ensure that the funds are used in accordance with the requirements of this Program. The Department may require any documentation or proof it considers necessary to efficiently administer this Program, including the ownership structure of each entity and the social security numbers of each owner. In order to verify losses, the Department may require the submission of dated, signed, and continuous records. These records may include, but are not limited to, commercial receipts, settlement sheets, warehouse ledger sheets, pick records, load summaries, contemporaneous measurements, truck scale tickets, contemporaneous diaries, appraisals, ledgers of income, income statements of deposit slips, cash register tape, invoices for custom harvesting, u‑pick records, and insurance documents.
SECTION 2.4.(g)  Expenditure of Awarded Funds. – Awarded funds shall be used for agricultural production expenses and recovery of losses due to the impacts of Hurricane Helene. The Department shall develop guidelines and procedures to ensure that funds are expended for the purposes allowed by this section and may require any documentation it determines necessary to verify the appropriate use of financial assistance awards, including receipts. All distributed funds are subject to federal and State income tax.
SECTION 2.4.(h)  Refund of Award. – If a person receives financial assistance under this program for which the person is ineligible, or if the amount of the financial assistance received is based on inaccurate information, the person forfeits the assistance awarded under this section and is liable for the amounts received. Assistance forfeited under this section shall bear interest at the rate determined in accordance with G.S. 105‑241.21 as of the date of receipt until repaid. Financial assistance forfeited but not paid shall be collected by a civil action in the name of the State, and the recipient shall pay the cost of the action. The Attorney General, at the request of the Commissioner of Agriculture, shall institute the action in the proper court for the collection of the award forfeited, including interest thereon.
SECTION 2.4.(i)  Definitions. – For purposes of this section, the following definitions apply:
(1)	Agricultural commodity. – Any crop, flowering plant, freshwater aquaculture species, fruit, grain, native grass, ornamental plant, sod, tree, or vegetable. An agricultural commodity does not include stored grain.
(2)	Farm infrastructure. – Fencing, greenhouses, barns, equipment, and farm roads or other structures or site improvements used for farming purposes.
(3)	Livestock. – Cattle, sheep, swine, goats, farmed cervids, and bison. Livestock shall include horses, mules, or other equines only if they are used for production of agricultural commodities.
(4)	Person. – Any individual, trust, estate, partnership, receiver, association, company, limited liability company, corporation, or other entity or group.
(5)	Poultry. – Chickens, quail, or turkeys.
SECTION 2.4.(j)  Program Reporting Requirement. – The Department shall submit a report to the Fiscal Research Division no later than the first day of the month six months after this section becomes effective, and every six months thereafter until all funds are expended or the Program expires, containing, at a minimum, all of the following data:
(1)	The number of applicants by agricultural commodity, farm infrastructure, livestock, or poultry, and the county in which the person incurred the verified loss.
(2)	The number and amount of grants awarded by agricultural commodity, farm infrastructure, livestock, or poultry.
(3)	The geographic distribution of the grants awarded.
(4)	The total amount of funding available to the Program, the total amount encumbered, and the total amount disbursed to date.
(5)	Any refunds made to the Program pursuant to subsection (h) of this section.
SECTION 2.4.(k)  Expiration and Reversion. – The Program shall expire 30 months after this section becomes effective. Any funds allocated to the Program not expended or encumbered by that date shall revert to the Helene Fund.
SECTION 2.4.(l)  Subsections (f) through (i) of this section apply to all funds received and recipients of funds under the Program as described in this section.

SMALL BUSINESS INFRASTRUCTURE GRANT PROGRAM
SECTION 2.5.(a)  Program; Purpose. – There is established the Small Business Infrastructure Grant Program to be administered by the Department of Commerce. The purpose of the program is to assist small businesses by providing grants to local governments to expedite infrastructure repairs impacting the operation and patronage of small businesses in the affected area.
SECTION 2.5.(b)  Definitions. – The following definitions apply in this section:
(1)	Department. – The Department of Commerce.
(2)	Eligible local government. – A city or county, as those terms are defined in G.S. 160A‑1 and G.S. 153A‑1, located in the affected area.
(3)	Program. – The Small Business Infrastructure Grant Program.
(4)	Qualifying infrastructure needs. – Water, sewer, gas, telecommunications, high‑speed broadband, electrical utility, and sidewalk and curb infrastructure serving one or more small businesses located in an eligible local government and damaged by Hurricane Helene that, until repaired, inhibits access to or operations of one or more of those small businesses. The term does not include infrastructure the small business owns or is responsible for maintaining.
(5)	Small business. – A business with a physical presence in the affected area that employs 150 or fewer employees.
SECTION 2.5.(c)  Applications; Verification. – An eligible local government with qualifying infrastructure needs, or a small business located therein, may apply for a grant under the program. An applicant must (i) identify with specificity the qualifying infrastructure needs, (ii) provide a cost estimate to repair the needs, (iii) provide a short summary of the detrimental impact on the named small businesses and how those businesses will benefit from the grant, (iv) apply to the Department on a form prescribed by the Department, and (v) include any supporting documentation required by the Department. The Department may accept applications until the funds available under the program have been fully awarded. The Department shall consult with applicants to substantiate applications prior to awarding grants under the program and prioritize grants so as to maximize the beneficial and efficient use of program funding. Grants shall be awarded to the eligible local government in which the qualifying infrastructure needs are located, and the eligible local government shall be responsible for using the grant amount for repairing the needs identified in the application.
SECTION 2.5.(d)  Grant Amount. – The total grant amount per project identified in an application is equal to the lesser of (i) the estimated cost of the identified qualifying infrastructure needs or (ii) one million dollars ($1,000,000).
SECTION 2.5.(e)  Eligible Uses. – Grants awarded under this program shall be used by local governments for repairing qualifying infrastructure needs that the Department, in consultation with applicant local governments and small businesses, determines adversely affect access to or operations of identified small businesses.
SECTION 2.5.(f)  Grant Program Limit. – The total of all funds granted under this program may not exceed the amount allocated to the program under this section. Grants shall be awarded on a first‑come, first‑served basis.
SECTION 2.5.(g)  Administrative Expenses. – The Department may retain up to three percent (3%) of the funds appropriated for the grant program established by this section for administrative expenses.
SECTION 2.5.(h)  Reporting. – Beginning December 15, 2025, and continuing every six months thereafter, the Department shall submit a report on the program to the Joint Legislative Economic Development and Global Engagement Oversight Committee and the Fiscal Research Division. The duty to report pursuant to this section shall cease after the submission of the report following when the Department has awarded the final grant under the program. Each report shall contain, at a minimum, all of the following:
(1)	The total grant amount awarded to date.
(2)	The average grant amount per project.
(3)	The types and number of qualifying infrastructure needs that have received grant funding.
(4)	The types and number of small businesses that have benefitted from the program.

PART Iii. extension of state of emergency
SECTION 3.1.  In accordance with G.S. 166A‑19.20(c)(2), the statewide declaration of emergency issued by the Governor in Executive Order No. 315, concurred to by the Council of State, and extended by Section 3.1 of S.L. 2024‑51, is further extended until June 1, 2025. This provision has no effect on Executive Order No. 322, issued by the Governor on October 16, 2024.

PART Iv. Reversion, limitation, and reporting of funds
SECTION 4.1.(a)  Reversion. – Except as otherwise provided, funds appropriated under Part II of this act shall revert to the Savings Reserve if not expended or encumbered by June 30, 2030.
SECTION 4.1.(b)  Receipt of Allocations. – 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 or federal aid. Where a recipient is an institution of higher education or a non‑State entity, the requirement regarding alternative funds, and the calculation of alternative funds received, under this subsection includes seeking private donations to help cover the losses or needs for which State funds are provided. An agency awarding State funds for disaster relief shall include a notice to the recipient of the requirements of this subsection.
SECTION 4.1.(c)  Remittance of Funds. – If a recipient obtains alternative funds pursuant to subsection (b) of this section, the recipient shall remit the funds to the State agency from which the State funds were received. A recipient is not required to remit any amount in excess of the State funds provided to the recipient under this act. The State agency shall transfer these funds to the Savings Reserve.
SECTION 4.1.(d)  Contract Requirements. – Any contract or other instrument entered into by a recipient for receipt of funds under this act shall include the requirements set forth in subsections (b) and (c) of this section.
SECTION 4.1.(e)  Limitation on Powers of Governor. – The Governor may not use the funds described in this act to make budget adjustments under G.S. 143C‑6‑4 or 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 these statutes with respect to funds other than those described in this act.
SECTION 4.1.(f)  Directive. – The Governor shall ensure that funds allocated in this act are expended in a manner that does not adversely affect any person's or entity's eligibility for federal funds that are made available, or that are anticipated to be made available, as a result of natural disasters. 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 4.1.(g)  Allocation Reporting Requirements. – Beginning April 1, 2025, for the previous month, OSBM shall report to the chairs of the House of Representatives and Senate Appropriations Committees, the chairs of the House of Representatives Oversight Committee, the chairs of the House of Representatives Select Committee on Helene Relief, the chairs of the House of Representatives Select Committee on Government Efficiency, the Joint Legislative Commission on Governmental Operations, Subcommittee on Hurricane Response and Recovery and to the Fiscal Research Division of the General Assembly on the implementation of this act on a monthly basis until the end of the month in which all funds are expended and shall also provide any additional reports or information requested by the Fiscal Research Division. In reporting on the use of State disaster recovery and assistance funds expended pursuant to this act and federal funds received by State agencies for disaster relief and recovery efforts, OSBM shall include, regardless of which State agency, federal agency, or non‑State entity that administers the funds, all of the following for each program:
(1)	The purpose of the program.
(2)	The responsible department or agency.
(3)	Current, year‑to‑date, and total cumulative funds appropriated, receipted from non‑State sources, expended, encumbered, and obligated by program and by source of funds.
(4)	A summary of activities.
(5)	The total program spending by county, where practicable.
(6)	Funds returned to the Savings Reserve pursuant to subsection (c) of this section, as applicable.
Non‑State entities that administer or receive any funds appropriated in this act shall assist and fully cooperate with OSBM in meeting OSBM's obligations under this section.
SECTION 4.1.(h)  Relationship to Previous Reporting Requirements. – Subsection (g) of this section supersedes Section 7.1(h) of S.L. 2024‑51, as amended by Section 5.6 of S.L. 2024‑53, and Section 3.1(g) of S.L. 2024‑53 (collectively, the prior reporting requirements). In cases of any conflict between the prior reporting requirements and subsection (g) of this section, the language in subsection (g) of this section shall prevail.

PART v. disaster recovery regulatory and procurement flexibility

EXTENSION OF EXPIRATION DATES FOR CERTAIN REGULATORY FLEXIBILITY PROVISIONS
SECTION 5.1.  The following provisions of S.L. 2024‑51 (Helene I), S.L. 2024‑53 (Helene II), and S.L. 2024‑57 (Helene III) providing regulatory flexibility and (i) expiring, ending, or otherwise limited in applicability, on any day of March 2025 or (ii) for which no expiration date is specified are, notwithstanding any provisions of those acts to the contrary, extended to the date of expiration of the statewide declaration of emergency issued by the Governor in Executive Order No. 315, concurred to by the Council of State, and extended pursuant to S.L. 2024‑51, this act, or any other enactment of a general law:
(1)	Helene I:
a.	Section 10.1 ("Funding Flexibility for Drinking Water and Wastewater Infrastructure Projects").
b.	Section 10.3 ("Storm Debris Open Burning Regulatory Relief").
c.	Section 16.1 ("Extend Grace Period for Corporations, Nonprofits, and LLCs in FEMA‑Designated Counties to Correct Grounds for Administrative Dissolution").
(2)	Helene II:
a.	Section 4E.1 ("Authorize State Agencies to Exercise Regulatory Flexibility for Employment‑Related Certifications").
b.	Section 4E.3 ("Flexibility for Building Permit Issuance/Inspections in Disaster Area").
(3)	Helene III:
a.	Section 1D.6 ("Temporary Pump and Haul Wastewater Permits").
b.	Section 1D.7 ("Authorize Waiver of Submission and Approval of Sedimentation Pollution Control Plan Prior to Initiation of Land‑Disturbing Activities in Certain Circumstances").
c.	Section 1D.8 ("Tree Ordinance Restriction in Disaster Declared Counties").
d.	Section 1E.1 ("Extend Certain Concealed Handgun Permits").
e.	Section 1F.4 ("Authorize the Office of the State Fire Marshal to Promulgate Rules for Temporary Manufactured and Modular Dwellings").

FUNERAL ESTABLISHMENT EXEMPTION WAIVER
SECTION 5.2.(a)  G.S. 90‑210.27A(a1) reads as rewritten:
"(a1)	If a funeral establishment is damaged or destroyed by fire, weather event, or natural disaster, the Board may suspend the requirements of two years, provided that the funeral establishment remains in compliance with the requirements of G.S. 90‑210.25(a2)(2) and (d), and all other applicable State laws, rules, and regulations of the town, municipality, or county where the funeral establishment is located. To receive an extension of more than two years from the date of loss, the funeral establishment may petition a court of competent jurisdiction who, upon finding that granting the requested extension would not negatively affect the public health, safety, and welfare, may grant an additional extension not to exceed three years from the date of loss or one year from the date of the court's order, whichever is greater."
SECTION 5.2.(b)  The North Carolina Board of Funeral Service may adopt rules to implement the provisions of this section.
SECTION 5.2.(c)  This section is effective when it becomes law.

FACILITATE PERMANENT INSTALLATION OF BROADBAND INFRASTRUCTURE
SECTION 5.3.  To facilitate the permanent installation of broadband infrastructure damaged by Hurricane Helene, all of the following shall apply:
(1)	If a roadway constructor is repairing, rebuilding, or reconstructing roads or related roadway infrastructure located within an affected county that is one quarter of a mile or longer in total length, then the roadway constructor shall collaborate and cooperate with any broadband provider that is repairing or rebuilding the broadband infrastructure that is or was located in or along the original road right‑of‑way. The roadway constructor shall coordinate with the broadband provider to install its cable and equipment at the appropriate time during the road or related roadway construction process in order to facilitate the permanent broadband solution and avoid the necessity of improvements being made immediately upon the conclusion of the road or related roadway construction process that may extend disruptions to the flow of traffic.
(2)	If a roadway constructor has allowed the installation of a temporary backbone broadband service or repair within a roadway right‑of‑way as an immediate means of restoring the backbone broadband service after damage by Hurricane Helene, then, upon presentation of data by the broadband provider of the backbone broadband service that the permanent installation of that temporary backbone broadband service or repair is the most cost‑effective and efficient means of achieving the permanent solution for the original damaged backbone broadband service, then the roadway constructor shall fully cooperate with the broadband provider to enable the broadband provider to convert the temporary solution to the permanent solution.
(3)	The Department of Transportation and local governments shall allow the underground installation of broadband infrastructure within rights‑of‑way as needed for repair of broadband infrastructure damaged by Hurricane Helene in affected counties.

ALLOW USE OF INMATES TO CLEAN UP DEBRIS ON PUBLIC ROADS AND ROADSIDES
SECTION 5.4.  The Department of Adult Correction shall coordinate with the Department of Transportation to allow for the use of inmates to clean up debris resulting from Hurricane Helene on public roads and roadsides in the affected areas. Except for the requirement that the number and location of prisoners be agreed to far enough in advance of each budget, the coordination required under this section shall be in accordance with G.S. 148‑26(b).

PROPERTY DISTRIBUTED AND ACQUIRED BY LOCAL GOVERNMENTS AND VOADS TO AID IN DISASTER RECOVERY
SECTION 5.5.(a)  Article 3 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑49.2.  Purchases by Volunteer Organizations Active in Disasters.
In consideration of public service, any member organization of Volunteer Organizations Active in Disasters (hereinafter "VOAD member") in the State of North Carolina may purchase heavy construction equipment and motor vehicles under State contract through the Department of Administration if the equipment and motor vehicles are purchased for the purpose of aiding in disaster recovery in this State. The Department of Administration shall make its services available to these organizations in the purchase of the equipment and motor vehicles under the same laws, rules, and regulations applicable to nonprofit organizations as provided in G.S. 143‑49(6). Any proceeds or benefit received by a VOAD member from the disposition or sale of equipment or motor vehicles purchased under this section shall be used for a public purpose only."
SECTION 5.5.(b)  Article 3A of Chapter 143 of the General Statutes is amended by adding a new Part to read:
"Part 4. Miscellaneous.
"§ 143‑64.8.  Distribution of surplus property for disaster recovery.
(a)	Notwithstanding any provision of Part 1 or Part 2 of this Article, the Department of Administration as the State Surplus Property Agency and State agency for federal surplus property shall regularly publish on its website a list of all heavy construction equipment and motor vehicles in its possession and control for review and consideration by units of local government and member organizations of Volunteer Organizations Active in Disasters (hereinafter "VOAD member") as to the useability of the equipment and motor vehicles for disaster recovery efforts in the State of North Carolina. The Department shall loan the property to units of local government and VOAD members on a first‑come basis for a period of five years without assessing or collecting any service charge or fee; provided, however, any distribution of property obtained from the United States of America shall comply with federal guidelines for the distribution of federal surplus property and the provisions of G.S. 143‑64.2(f). Property loaned to a unit of local government or VOAD member under this section shall not be transferred to another entity by the unit or VOAD member. After the expiration of the five‑year time period, the property loaned under this section shall become the property of the unit of local government or VOAD member, as appropriate, and they may sell or otherwise dispose of the property. Any proceeds or benefit received by a VOAD member from the disposition or sale of the property shall be used for a public purpose only. The use of proceeds or benefits received from the sale of the property by a unit of local government is for a public purpose.
(b)	The Department of Administration shall maintain a record of each piece of construction equipment and each motor vehicle distributed under subsection (a) of this section, the unit of local government or VOAD member to which the equipment and/or motor vehicle was distributed, and the approximate value of the equipment and/or motor vehicle at the time of distribution. Not later than February 1 of each fiscal year, the Department shall submit a report detailing the distributions to the House Appropriations Committee on General Government, the Senate Appropriations Committee on General Government and Information Technology, and the Fiscal Research Division."

MODIFY LOCAL GOVERNMENT CASHFLOW LOAN PROGRAM
SECTION 5.6.  Section 4E.5 of S.L. 2024‑53, as amended by Section 1F.1 of 2024‑57, reads as rewritten:
"SECTION 4E.5.(a)  Of the funds appropriated to the Department of State Treasurer (Department) from the Helene Fund, the sum of one hundred million dollars ($100,000,000) shall be used by the Department to provide cashflow loans to local governments in the affected area. The following shall apply to the loans made under this section:
(1)	The Department is authorized to administer the loan program and to develop an application process for the loans.
(1a)	Notwithstanding any other provision of law, in applying for a cashflow loan under this section, local governments are not required to get approval from the Local Government Commission.
(2)	Loans shall be used for disaster response activities only.
(3)	Loan recipients will not be assessed any interest on the loans.
(4)	Repayment of each loan made under this section begins no earlier than one year after that loan's initiation.
(5)	Except as provided in subdivision (6) of this section, loans must be repaid within five years of initiation or by June 30, 2030, whichever is earlier.
(6)	The Department may forgive the remaining balance of any loan made under this section if the local government (i) applies to the Department for forgiveness on a form and in a manner prescribed by the Department, (ii) provides documentation to the Department that, in the discretion of the Department, substantiates that the local government used the loan proceeds for disaster response activities in accordance with this section, and (iii) has applied for all relevant disaster relief funding sources, including funds from insurance policies in effect and available federal aid, for which the local government is eligible.
"SECTION 4E.5.(b)  The Department of State Treasurer may use funds appropriated for cashflow loans for administrative expenses, provided that total administrative expenses shall not exceed two percent (2%) of loan initiations.
"SECTION 4E.5.(c)  The Department of State Treasurer shall be exempt from the rulemaking requirements in administering this section."

STATE AID TO PUBLIC LIBRARIES FUND HOLD HARMLESS
SECTION 5.7.(a)  In administering the Aid to Public Libraries Fund in the affected area, the Department of Natural and Cultural Resources shall not reduce a grant to a local library system based on reductions in local funding for the system imposed by the governing body of a unit of local government when the reduction is imposed as part of a general budget reduction reflecting negative impacts on local economic or fiscal conditions caused by Hurricane Helene.
SECTION 5.7.(b)  This section expires on July 1 of the fiscal year that follows the date of expiration of the statewide declaration of emergency issued by the Governor in Executive Order 315, concurred to by the Council of State, and extended pursuant to S.L. 2024‑51 or any other enactment of a general law.

RECONSTRUCTION OF NONCONFORMING RESIDENTIAL STRUCTURES
SECTION 5.8.(a)  Notwithstanding any local government development regulation to the contrary, and to the extent allowed by federal law, reconstruction or repair of a nonconforming residential structure in the affected area shall be allowed when all of the following criteria are met:
(1)	The structure shall not be enlarged beyond its original footprint.
(2)	The structure shall serve the same or similar residential use.
(3)	There are no alternatives for replacing the structure to provide the same or similar benefits to the structure owner in compliance with current law.
(4)	The structure will be reconstructed so as to comply with a local government's current development regulations to the maximum extent possible.
(5)	If located in an area regulated by a unit of local government pursuant to a floodplain or flood damage prevention regulation, the structure will be compliant with the regulation.
(6)	Reconstruction shall comply with any federal law requiring local government implementation and enforcement.
SECTION 5.8.(b)  For purposes of this section, "development regulation" means a unified development ordinance, zoning regulation, subdivision regulation, historic preservation or landmark regulation, or any other regulation adopted pursuant to Chapter 160D of the General Statutes, or a local act or charter that regulates land use or development. The term shall not include: (i) a floodplain or flood damage prevention regulation, (ii) local regulations adopted pursuant to G.S. 143‑138(e) or adopted pursuant to the North Carolina State Building Code, (iii) erosion and sedimentation or stormwater control regulations adopted to comply with requirements of federal law, or (iv) any other regulations adopted to comply with requirements of federal law.
SECTION 5.8.(c)  This section is effective when it becomes law and expires June 30, 2030.

PART vI. miscellaneous provisions

EFFECT OF HEADINGS
SECTION 6.1.  The headings to the parts and sections of this act are a convenience to the reader and are for reference only. The headings do not expand, limit, or define the text of this act, except for effective dates referring to a part or section.

SEVERABILITY CLAUSE
SECTION 6.2.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of this act as a whole or any part other than the part so declared to be unconstitutional or invalid.

EFFECTIVE DATE
SECTION 6.3.  Except as otherwise provided, this act is effective when it becomes law.