NC Weekly Policy Update for 9/7/20

Happy Labor Day!

COVID-19

• Governor Cooper signaled he intends to sign into law the Coronavirus Relief Act 3.0 ( HB 1105 ) passed by the state General Assembly before they adjourned the final special session on Thursday. The spending bill uses the remainder of the federal CARES Act money that North Carolina must allocate by Dec. 30. It provides an automatic grant of $335 to parents who filed taxes to help them offset COVID-19-related educational expenses and allows those who didn’t file to apply for the grant. The bill also provides additional school enrollment funding, support for high speed internet access and disaster relief, and an additional $50 per week for state unemployment checks. While the governor emphasized the critical need for pandemic support, he also said that “legislators should have done more to expand Medicaid, support small businesses, pay our educators, assist with rent and utilities relief and further help unemployed North Carolinians.”

• Restaurant and lodging industry leaders expressed disappointment that a Job Retention Grant program for small business, included in the Coronavirus Relief Act 3.0, will not be available to businesses that laid off more than 10% of workers from March through May. Additionally, any business that received a loan from either state or federal recovery programs are not eligible for the grant program. Lynn Minges, who leads the NC Restaurant and Lodging Association, said that businesses forced to shut down and unable to take on more debt may not survive.

• An amendment to the Coronavirus Relief Act 3.0 proposed by Sen. Kirk deViere, D-Cumberland would have directed funding to programs to help shuttered businesses pay rent, mortgages, and other fixed costs, and to help what are classified as Historically Underutilized Businesses, which include minority-owned businesses. The amendment was tabled by the Senate along party lines, preventing it from being considered for inclusion in the final bill.

• The state unemployment office began implementing a federal program that will boost unemployment benefits by $300 a week for a total of 3 weeks. The program was initiated in August, and the payments will be retroactive. To receive the federal supplement, a worker must qualify for at least $100 a week in state benefits and be out of work due to the coronavirus pandemic.

• In response to stabilizing COVID-19 hospitalization and infection trends, Governor Cooper lifted reopening restrictions for some businesses and modified rules for social gatherings beginning Friday, September 4. In Phase 2.5 of the governor’s three-part recovery plan, playgrounds, museums, gyms, bowling alleys and other recreational facilities may reopen with varying operating capacity limits. Mass gathering limits will be increased to 25 people indoors and 50 people outdoors, but masks will be required in public places for anyone age 5 and older. In addition, state DHHS secretary Dr. Mandy Cohen issued an order permitting resumption of outdoor visits at nursing homes. Bars, amusement parks, and movie theaters remain closed until at least Oct. 2.

Voting Rights

• A three-judge NC Superior Court panel ruled that felons on probation or parole cannot be denied the right to vote if the only reason they remain under supervision is a failure to pay court costs and fees. The current North Carolina felon disenfranchisement laws prohibit felons from voting until their entire sentence, including probation or parole, is complete. The 2-1 court ruling held that including payment of fees in this definition amounted to a poll tax, saying “… our Constitution is clear: no property qualification shall affect the right to vote.” The court enjoined the state from enforcing that part of the law but did not restore voting rights to those on probation for other reasons.

Education Policy

• A state audit of online courses designed to provide advanced and honors courses to public school students found evidence of poor quality, plagiarism and copyright infringement. The courses, provided by state-run NCVirtual Public School, are available to students in districts that are not otherwise able to offer these advanced classes. The program is funded by the local public school districts and charter schools and administered by the state Department of Public Instruction. State Auditor Beth Wood presented the findings to the Joint Legislative Oversight Committee. State Board of Education officials and Superintendent of Public Education Mark Johnson accepted the audit findings but suggest changes are already in place to improve the system.

• On Tuesday the judge overseeing the Leandro school funding case agreed to the action plan calling for additional monies to meet the state’s constitutional obligation to provide basic education to all children. Developed by the NC Board of Education, the Governor’s Office, the NC Department of Justice and plaintiffs in the case, the consent order calls for spending an additional $427 million for teacher pay raises, directing more money to students with the greatest needs, supporting students at risk of failing academically, and expanding early childhood education programs. Some Republican lawmakers voiced opposition to finding state money to implement the consent order.

Economic and Housing Policy

• HB 807, a bill committing $18 million in state grants for the purpose of bringing a “sports championship employer” to North Carolina passed both chambers of the legislature with bipartisan support and was sent to Governor Cooper Thursday. The sport is not named, but Sen. Tom McInnis, R-Richmond, whose district includes the Pinehurst golf resort, said the group involved would announce plans in the coming week.

Women’s Rights

• On Thursday abortion rights advocates and providers filed a case in state superior court asserting that components of North Carolina’s long-standing abortion restrictions violate civil rights provided under the state constitution. Litigants claim these restrictions are medically unnecessary, impose discriminatory costs and disproportionately affect rural communities and communities of color. Defendants named in the case include leaders of the state General Assembly as well as the state's attorney general and local district attorneys, who have the authority to prosecute violations of state restrictions.

NC Weekly Policy Update for 8/31/20

Education Policy

• On Tuesday State Board of Education Chairman Eric Davis asked the NC House Select Committee on COVID-19 to hold school districts “harmless” for 2020-2021 enrollment decreases. This would mean that school districts will be protected from funding cuts even if their enrollment drops due to the COVID-19 crisis. Current state law mandates adjusting funding downward if enrollment is 2% or 100 students lower than projected. Davis also requested allocation of federal COVID-19 relief funding for educational needs, including PPE for schools, transportation to support food distribution and internet hotspots, internet and broadband services for families, and mental health support for students and staff.

• NC State announced Wednesday that students would be required to move out of campus housing unless they were granted an exception, reversing course from the plan they had announced the previous week. Chancellor Randy Woodson cited the rapidly increasing number of COVID-19 cases among the student body -- N.C. State reported a 34% positive test rate this week -- as the primary reason for the change in plans. Other UNC System schools continue to face scrutiny and pressure about their fall plans, with UNC-Charlotte Public Health Sciences faculty advocating for a fully online semester and Appalachian State receiving criticism over a new COVID-19 dashboard that does not include promised changes. Finally, UNC System employees who had sued earlier this month over unsafe working conditions may settle out of court next week during a mediated settlement conference.

Economic and Housing Policy

• On Tuesday Governor Cooper announced the allocation of $175 million in federal coronavirus relief funds to help North Carolinians with rent and utility payments. The following day, he released a letter to both chambers of the NC legislature outlining his recommendations for the 2020-2021 State Budget and for the remaining federal Coronavirus Relief Funds. He once again called upon Republicans to expand Medicaid, increase unemployment benefits, pay teachers and other workers one time bonuses, and take advantage of historically low interest rates to invest in schools and infrastructure. Leaders in the General Assembly later said that they planned to add an additional $50 per week for unemployment benefits. Separately, the Governor indicated recipients of unemployment benefits should receive as soon as next week the first of three weeks of an additional $300 dollars in benefits allocated by the federal government for the first three weeks of August but not yet paid out due to issues with the state’s benefit administration.

Environmental Policy

• On Monday the North Carolina Department of Environmental Quality denied applications from Carolina Sunrock to build an asphalt and concrete plant in Anderson and a quarry in Prospect Hill. The department’s Division of Air Quality found that the proposed facilities would not comply with national air quality standards. A public hearing about the proposals was scheduled to take place September 10, but it is now canceled.

Health Care Policy

• On Thursday a North Carolina Administrative Law judge dismissed a suit from three health care companies not selected as recipients of a NC DHHS Medicaid contract. The companies had claimed that conflicts of interest rendered DHHS’s decision to award a large portion of the contract to Blue Cross Blue Shield of North Carolina improper. Following Judge Tenisha Jacobs’ dismissal of the suit, the three suing companies appealed to Superior Court.

Criminal Justice

• On Friday, Wake County Superior Court Judge Vinston Rozier Jr., the judge overseeing the case about measures to combat COVID-19 in North Carolina prisons, held a hearing to consider a request to appoint a “special master” to manage possible inmate releases. The plaintiffs, including the ACLU and NAACP, advocated for such an appointment, citing ways that the state has continued to fail to comply with Judge Rozier’s orders.

NC Weekly Policy Update for 8/23/20

Covid-19

• This week, four separate UNC system universities moved to shift all undergraduate classes online. UNC Chapel Hill, NC State University, East Carolina University and UNC Charlotte have all seen increases in COVID-19 cases associated with students returning to campus. UNC Chancellor Kevin Guskiewicz expressed surprise at the “velocity and magnitude of the virus’ spread” and cited a failure of students to follow mitigation requirements off campus as a factor in the spread. NC State Chancellor Randy Woodson cited a spike in cases and in the number of students in quarantine and isolation, expressing disappointment with non-compliant off-campus gatherings. Newly appointed UNC System President Peter Hans says his office will continue to look at campus-specific needs across the UNC system, but medical experts, public health officials, campus town leaders and students have long been highly critical of the decision to reopen in-person classes.

• On August 13, Republican Lt. Gov. Dan Forest dropped his lawsuit against Gov. Cooper, in which he had claimed the governor did not have the right to issue executive orders related to mitigating COVID-19 without the concurrence of the council of state. He had asked the court to stay the governor’s powers until after the case was decided, but Wake County Superior Court Judge Jim Gale dismissed Forest’s argument as unlikely to succeed, and Forest declined to pursue the case further.

Voting Rights

• While absentee voting in the state has historically made up only a small percentage of total votes, State Board of Elections data shows requests for mail-in ballots - now numbering over 300,000 - are on track to exceed the combined number from North Carolina’s last two general elections. As of Thursday, 53% of requests have come from registered Democrats, 15% from Republicans, and about 30% from unaffiliated voters.

• Attorney General Josh Stein joined attorneys general from five other states and the District of Columbia in a lawsuit seeking to block changes to the US Postal Service, asserting the changes will reduce the Postal Service’s ability to handle a projected substantial increase in mail-in ballots due to coronavirus concerns. Stein said the lawsuit “seeks to immediately reverse the agency’s actions and guarantee safeguards and standards for election mail.”

Economic and Housing Policy

• North Carolina applied for and received funds from the Federal Emergency Management Agency that would enable the state to pay $300 weekly unemployment benefits retroactively for the first three weeks of August. That represents half of the $600 benefit that expired July 31. Because the new funds are not paid through the existing unemployment systems and program, it remains uncertain as to when the payments will actually be made. NC Division of Employment Security officials have cited “additional burdens” imposed by the new program and the necessity to “reprogram its benefits system” to meet payment schedules.

• According to the NC Division of Employment Security, while the overall number of North Carolinians employed increased in June, the July unemployment rate rose from 7.5% to 8.5%. This rate is more than double pre-coronavirus rates, but it is an improvement over the peak COVID-19 rate of 12.9% in April.

Health Care Policy

• State Treasurer Dale Folwell announced new incentives, including reduced co-pays, to encourage State Health Plan participants to sign up with health care providers who agree to be part of the “Clear Pricing Project,” a new payment model. Folwell has claimed that the model, which ties health care providers’ reimbursement rates to Medicare rates, is a more transparent and less expensive insurance plan for state employees, teachers, state retirees and their families. Major hospital systems in the state have refused to join the plan, saying the reimbursement rates would force cuts in services. Duke University professor Ronnie Chatterji, Folwell’s Democratic opponent in the upcoming election, strongly criticized Folwell and the Clear Pricing Project, calling instead for expanded Medicaid and a reimbursement strategy based on data-driven assessment of hospital healthcare outcomes.

Criminal Justice

• On Tuesday, Governor Cooper signed an executive order that will eliminate the requirement to disclose criminal convictions on applications for many North Carolina state jobs. As a result of this move to “ban the box,”applicants for many jobs will not be required to routinely report having a criminal conviction, an admission that often automatically excludes a person from consideration for a job even if the conviction is very old or unrelated to the position sought. Jobs related to security clearance or law enforcement are not included in the order. The order goes into effect Nov. 1.

• A three-judge NC Superior Court panel heard arguments Wednesday challenging the state’s felon disenfranchisement law. The current law restores voting rights to those convicted of a felony after they have served their complete sentences, including prison and probation or parole; the lawsuit calls for the return of voting rights after a person is released from prison. Citing both a history of racial discrimination in the criminal justice system and uneven application of judicial prerogative in sentencing, the plaintiffs argue the law will prevent around 60,000 North Carolinians from voting in November. Lawyers for the defendants, including the state of North Carolina and the Republican-led legislature, say changing the law is up to the legislature, not the courts. The panel of judges expects to issue a decision by September 4.