New NC State Laws Affecting the Arts

New NC State Laws Affecting the Arts

There were several bills form the NC General Assembly Session that ended in late June that were signed into law by Governor Cooper in early July. Below is a brief description of each new law that will impact the NC arts and arts education community.

Also, please review Arts North Carolina’s top priorities for the NC General Assembly’s return to Raleigh , currently scheduled for Wednesday, September 2nd.

Arts High School Graduation Requirement

• ONE arts credit (music, visual art, theatre arts, dance) between Grade 6 and Grade 12 in order to graduate from high school, beginning with those students entering Grade 6 in 2022.
• The NC State Board of Education will define the standards of the arts credit and to plan for its phased-in implementation.
• The NC State Board of Education would report to the Joint Legislative Oversight Committee on or before December 15, 2022 about the implementation of this high school graduation requirement and of the three components of Comprehensive Arts Education (arts education, arts integration, and arts exposure)

COVID-19 Liability Protection for Businesses

• Provides immunity for nonprofits, businesses, and individuals from liability for alleged transmission of COVID-19, except in cases of gross negligence, willful or wanton conduct, or intentional wrongdoing.
• The immunity would extend to individuals, nonprofit board members and volunteers
• Must provide clear notice to people entering their facilities of actions they are taking to reduce the risk of COVID-19 transmission.
• Applicable for claims up to 180 days after the end of the COVID-19 state of emergency in North Carolina (Executive Order No. 116)
• The bill would not limit the ability of workers to file workers’ compensation claims if they contracted COVID-19 in the course of their employment

New Job Retention Grant Program for Businesses

• $15 million Department of Commerce Grants Program
• Provides grants equal to roughly 2.5 times an organization’s monthly payroll, up to $250,000.
• ONLY if they have NOT received any financial assistance through the Paycheck Protection Program or the Main Street Lending Program.
• AND ONLY available to businesses or nonprofits that maintained at least 90% of their employees from March 1^st through May 31^st.
• For more information CLICK HERE.

Coronavirus Relief Funding to Local Government

• $300 million of Federal CARES Act funding distributed to 97 counties
  • $250,000 base allocation, then population based allocation
  • Counties must allocate 25% of funding to cities
  • $150M from May NCGA Session, $150M from June NCGA Session
• Counties with larger populations received funding directly from US Treasury (Guilford: $94M, Mecklenburg: $194M, Wake: $194M)
• Funding CANNOT be used to replaced lost Government Revenue
• Funding CAN be used for COVID-19 Related Expenses and Programs including Business Interruption Grants
• Arts NC working to clarify issues with NC Constitution and access for Nonprofit Arts Organizations

Arts NC Priorities for the NC General Assembly Fall Session

• Emergency Funding for Nonprofit Arts Organizations through NC Arts Council
  • H1068 and S738 to access $3M of CARES Act Funding for Arts Organization Grants
  • $3 million was request in April, evaluating larger ask for September as imapct grows
• Level or Increased Funding for NC Arts Council in FY 2020-2021
  • Budget Cuts may be required, pending Federal Relief Legislation
  • Administration would likely make spending adjustments, not NCGA
• Inclusion of Nonprofits in all COVID-19 Legislation
  • Other Possible Grant and Loan programs are being considered
  • Federal Funding will Determine Possible Programs
• Unemployment Reform
  • Immediate Needs and Long-Term Changes must be addressed
  • Federal Programs will inform Unemployment Insurance priorities
• Incentivize Charitable Giving through Tax Policy