Volume 1 | March 11, 2022
NC Hospitality Grants Get Authorized for Second Round

This week HB 243- Budget Technical Corrections bill passed the legislature. The bill specifically re-authorizes the Business Recovery Grant Program. Not all the funds allocated to the Program were spent, so legislative leaders wanted to authorize a second round. It passed the House and Senate with bipartisan support and has gone to Governor Cooper’s desk, who is expected to sign it. The Department of Revenue will soon re-open the Program for applications for both the Business Recovery Grant and the Hospitality Business Recovery Grant programs.

The bill expands the ways in which a business can show a decline in gross receipts including Federal Tax Forms 1065, 1120, and 1040. The bill also eliminated the rule, for those in the Business Recovery Grants, that if a business received other assistance, such as PPP, they would be ineligible. The 20% loss requirement is still in effect. The intent of the language is to expand the businesses eligible for the grants and be able to utilize the entire $500 million appropriation. Language also authorizes that if after Phase 2 closes and there are still funds left over, the funds to be distributed proportionally to recipients. A this point, $500,000 cap would be disregarded and applicants could receive additional funds. NCRLA continues to work closely with the NC Department of Revenue and will let members know as soon as Phase 2 is reopened for applications.
Legislative Long Session Finally Comes to a Close

The House and Senate came together this week and finally adjourned the 2021 session, the longest session in North Carolina history. Under the adjournment resolution, the General Assembly can come back on April 4-6 and May4-6 to take up a very limited number of issues. Legislative leadership has indicated that they do not expect that anything significant will be taken up. The short session will begin the day after the primary election on Wednesday, May 18 at 12 p.m.
Municipal and Primary Election Schedule

There had been some confusion around the primary and municipal election schedules after the Supreme Court ruling at the end of last month. Since the primary elections have been pushed to May 17, state law would have required "second primaries" to be held on July 5. This week the Budget Technical Corrections bill also included a hard date for the second run-off date of July 26th, which has also been set as the General Election date for municipalities delayed by redistricting, including Charlotte and Raleigh. All primaries will be held on May 17th, 2022.
National News
RRF Update: Push to Include Funding in COVID Health Package

Congress finally reached a bipartisan agreement on their annual spending bill this week. Despite the tireless efforts of NCRLA and our partners at the National Restaurant Association over the past several months, the agreement is silent on replenishing the Restaurant Revitalization Fund (RRF). No new funds will be directed to complete the mission and fund the 177,000 applications still pending in this legislation.
 
The National Restaurant Association called this failure a “gut punch” to our industry and we couldn’t agree more. We are waiting for the dust to settle in Washington and to identify if there are other avenues to replenish this crucial program. But this decision from Congress is a huge blow to our efforts and the path forward is very uncertain. Restaurants are going to close as a result of inaction, despite tens of thousands of restaurants across the nation engaging in this fight. LEARN MORE
 
However, this morning, Congressmen Blumenauer, Phillips, and Fitzpatrick are leading a letter to Speaker Pelosi and Majority Leader Hoyer asking to include RRF in the $15 billion COVID health package currently scheduled for a House floor consideration next week. Currently from North Carolina, Congresspersons Price, Ross, and Manning have signed on to the dear colleague letter.

From the start of this pandemic, NCRLA and the National Restaurant Association have pursued an “all-of-the-above” strategy for the industry, diving into every issue at the federal, state, and local levels that could help or hurt us. From social districts and cocktails-to-go to worker shortages, we have had a seat at the table for every major policy debate underway. That will not change.
 
We will continue to keep you up to date on the outlook for RRF, but in the meantime, there are many other vital issues that we will be focused on. We are not stopping. We will continue the fight for North Carolina's restaurants.
Upcoming Political Fundraisers
 
Below are upcoming opportunities to support legislative champions of our industry being hosted by industry members.
 
State Senator Chuck Edwards is a Republican running for Congress in the 11th district and is in a primary against Congressman Madison Cawthorn and Michele Woodhouse. Senator Edwards is a restauranteur and led the fight for the Hospitality Business Recovery Grants in the state Senate.

Raleigh Fundraiser: Thursday, March 31st, 2022 from 5:30-7:20 p.m. at The Angus Barn Wine Cellar

Charlotte Fundraiser: Wednesday, March 30th, 2022 from 12:00- 1:30 p.m. Hilton Garden Inn in Concord
 
State Representative Graig Meyer is Democrat in the House of Representatives running for a state Senate seat to represent Orange, Caswell and Person Counties . Representative Meyer has been a longtime industry champion, particularly on ABC reform.

Chapel Hill Fundraiser: Tuesday, March 22nd, 2022 from 5:00-7:00 p.m. at the Sheraton Chapel Hill Hotel

For more information on either candidate or to RSVP contact Isabel Villa-Garcia at ivilla-garcia@ncrla.org
Corporate Partner Highlights
The North Carolina Restaurant & Lodging Association serves to advance and protect
the interests of more than 20,000 businesses that employ 11 percent of the state’s workforce
and generate more than $27.3 billion in sales annually.
NCRLA.org | 919-844-0098