AN ACT to provide for the continuation and expansion of programs and services provided by the state for workforce development and to appropriate funds for those purposes.

The General Assembly of North Carolina enacts:

PART I. TITLE AND INTRODUCTION

SECTION 1.(a)  Title. – This act shall be known and may be cited as the Workforce Act of 2026.

SECTION 1.(b)  Introduction. – The appropriations made in this act are for the amounts necessary to modernize education‑to‑workforce pathways across the State, to improve credit acquisition and transfer for students, strengthen career information sharing among institutions of higher education and employers, and expand employer‑recognized credentials to provide faster, clearer routes to credential completion and career success.

PART II. APPRENTICESHIP NC SUPPORT

SECTION 2.(a)  Findings. – The General Assembly finds that work‑based learning is of value to learners as well as employers; that apprenticeship is a highly effective work‑based learning model and provides a significant return on investment; that continued growth of apprenticeship is important to the State's economy; that ApprenticeshipNC is critical to increasing the number of employers participating in apprenticeships as well as the number of registered apprentices in North Carolina; that continued growth of apprenticeship is at risk without adequate support for ApprenticeshipNC; and that additional State support is necessary to sustain apprenticeship growth.

SECTION 2.(b)  Appropriation. – There is appropriated from the General Fund to the Community Colleges System Office the sum of three million one hundred thousand dollars ($3,100,000) in recurring funds beginning with the 2026‑2027 fiscal year for the administration of the ApprenticeshipNC program.

part iii. nC WORKFORCE CREDENTIALS

NC WORKFORCE CREDENTIALS OPERATIONAL EXPENSES AND STAFFING

SECTION 3.1.(a)  Findings. – The General Assembly finds that, due to the critical importance to the State of identifying industry‑valued credentials, promoting programs of study leading to industry‑valued credentials, and aligning industry‑valued credentials and programs of study leading to those credentials with federal Workforce Pell Grant implementation, it is necessary that the State provide funds to the Department of Commerce (Department) to develop and maintain a list of industry‑valued credentials, to continually determine programs of study to meet workforce needs, and to ensure alignment to federal Workforce Pell Grants.

SECTION 3.1.(b)  Appropriation. – There is appropriated from the General Fund to the Department the sum of three hundred fifty thousand dollars ($350,000) in recurring funds, beginning with the 2026‑2027 fiscal year, for operational expenses and staffing to support NC Workforce Credentials in accordance with this section and G.S. 143B‑438.10.

SECTION 3.1.(c)  Data Coordination. – The Department shall engage with employers to provide workforce data and participate in efforts to link data on industry‑valued credentials to labor market outcomes, including:

(1)        Labor market demand.

(2)        Job placement and Standard Occupational Classification or similar data reflecting employment‑in‑field.

(3)        Wage outcomes.

(4)        Stackability capacity for credentials to count toward and build into more advanced career credentials.

(5)        Work location, collected on a voluntary basis and in a manner consistent with applicable State and federal privacy protections, to support aggregated analysis of regional workforce outcomes, talent retention, and analysis of education and career pathways alignment with local labor market demand.

SECTION 3.1.(d)  Stakeholder Consultation. – As part of its efforts to link data on industry‑valued credentials to labor market outcomes, the Department shall consult with the North Carolina Community Colleges System Office, The University of North Carolina System Office, and other relevant interested parties to ensure alignment with rules and regulations pertaining to federal Workforce Pell Grants and to take steps to institutionalize workforce data sharing across State government.

SECTION 3.1.(e)  Longitudinal Data. – As part of its efforts to link data on industry‑valued credentials to labor market outcomes, the Department shall require issuers of those credentials to submit data pertaining to credentials issued to the North Carolina Collaboratory and the North Carolina Longitudinal Data System for inclusion in the System's Licenses and Credentials Data Warehouse to enhance the State's ability to retrieve and link those data to labor market outcomes.

SECTION 3.1.(f)  Wage‑Outcome Prioritization. – In developing and maintaining the list of industry‑valued credentials, the Department shall give substantial weight to demonstrated wage outcomes and evidence that credential attainment provides a positive return on investment for students.

SECTION 3.1.(g)  Outreach. – Of the funds appropriated to the Department under subsection (b) of this section, the Department may use up to fifty thousand dollars ($50,000) each fiscal year for outreach and communications consistent with the purposes of this section, including to contract with non‑State entities for outreach and communications.

ADDITIONAL FUNDS FOR SHORT‑TERM WORKFORCE DEVELOPMENT GRANTS

SECTION 3.2.(a)  Findings. – The General Assembly finds that, due to the critical need in this State to provide financial aid for students pursuing industry‑valued credentials, including in programs of study that are not eligible for federal Workforce Pell Grants, it is in the State's interest to provide an increase of funds to the North Carolina Community College Short‑Term Workforce Development Grant Program.

SECTION 3.2.(b)  G.S. 115D‑10.19 is amended by adding a new subsection to read:

(e)      Administrative Costs. – The North Carolina Community Colleges System Office may use up to four percent (4%) of the funds appropriated for the Program for administrative costs associated with administration of the Program.

SECTION 3.2.(c)  Appropriation. – There is appropriated from the General Fund to the Community Colleges System Office the sum of one million dollars ($1,000,000) in recurring funds beginning with the 2026‑2027 fiscal year for the Short‑Term Workforce Development Grant Program.

PART IV. SEAMLESS POSTSECONDARY TRANSFER

INCLUDE NORTH CAROLINA INDEPENDENT COLLEGES AND UNIVERSITIES IN COMMON DIGITAL TRANSCRIPT

SECTION 4.1.  The State Education Assistance Authority, in consultation with the Department of Public Instruction, the Community Colleges System Office, The University of North Carolina System Office, the North Carolina Independent Colleges and Universities, the College Foundation, Inc., and the Department of Information Technology, shall incorporate the private colleges and universities located in this State into the common digital transcript developed pursuant to Section 8A.15 of S.L. 2023‑134. No later than March 15, 2027, the Authority shall report to the Joint Legislative Education Oversight Committee on the progress made toward this goal, including at least the following information:

(1)        Any additional steps to be taken for this purpose and a time line for completing those steps and publishing the transcript to students enrolled at private colleges and universities in this State.

(2)        Estimates of any additional costs needed to expand the common digital transcript to private colleges and universities.

EXPANSION OF POSTSECONDARY TRANSFER TECHNOLOGY

SECTION 4.2.(a)  Findings. – The General Assembly makes the following findings regarding the current state of postsecondary transfer technology at institutions of higher education in North Carolina:

(1)        Seamless postsecondary transfer and reverse transfer reduces barriers for learners and aligns to statewide economic and workforce goals.

(2)        The Current Operations Appropriations Act of 2023, S.L. 2023‑134, authorized and supported statewide postsecondary data and technology initiatives to improve student outcomes, including transfer efficiency.

(3)        Expanding technology to support the transfer of student credits among and between institutions of higher education will reduce the time it takes for students to earn a degree and reduce costs.

(4)        Successful postsecondary transfer and reverse transfer is necessary to achieve the postsecondary attainment goal established in G.S. 116C‑10.

(5)        Additional investment is necessary to scale and integrate technology supporting seamless postsecondary transfer and reverse transfer.

SECTION 4.2.(b)  Initiative; Administration. – For the 2026‑2027 academic year, The University of North Carolina System Office, in collaboration with the Community Colleges System Office and the Department of Information Technology, shall expand the current initiative (Initiative) to accelerate the transfer of course credits among postsecondary institutions of higher education using postsecondary transfer technology. This expanded Initiative shall provide and improve technology at participating institutions of higher education that will simplify the credit transfer process for students, advisors, and the participating institutions. The expanded Initiative shall allow students to easily compare credit transfer options, speed up student decision making, and streamline transfer planning and progress toward degrees in a manner that reduces overall costs for students in the State.

SECTION 4.2.(c)  Appropriation. – There is appropriated from the Information Technology Reserve to the Board of Governors of The University of North Carolina the sum of two million five hundred thousand dollars ($2,500,000) in nonrecurring funds for the 2026‑2027 fiscal year for the expanded Initiative described in subsection (b) of this section. The University of North Carolina System Office shall use these funds to identify and develop programs to accelerate the transfer of course credits among postsecondary institutions of higher education in accordance with this section.

SECTION 4.2.(d)  Report. – No later than March 15, 2027, The University of North Carolina System Office shall report to the Joint Legislative Education Oversight Committee on the Initiative, including at least the following information:

(1)        The number and identity of institutions participating in the Initiative.

(2)        The progress of each participating institution in the following areas, with data disaggregated on the basis of income, race, ethnicity, and other demographic characteristics, where available:

a.         Enrollments upon transfer.

b.         Credentials attained as a result of the successful transfer of credits.

(3)        Recommendations to scale credit mobility and transfer technology statewide, including identification of data system needs and opportunities to further reduce the time it takes for a student to receive a degree and any other student costs.

part v. nc careers enhancement

SECTION 5.(a)  Findings. – The General Assembly finds that (i) maintaining a high‑quality, up‑to‑date central platform to disseminate information on career exploration, career planning, and alignment of education to career pathways to meet workforce needs is a statewide priority, (ii) NC Careers provides such a platform, (iii) enhancing NC Careers is essential to the effective implementation of the provisions of G.S. 115C‑158.10, and (iv) it is necessary that the State provide funds to the Department of Commerce to enhance NC Careers and its ability to serve as North Carolina's premier workforce information and career navigation resource for students, parents, educators, jobseekers, and career counselors in accordance with this section.

SECTION 5.(b)  Appropriation. – There is appropriated from the Information Technology Reserve to the Department of Commerce the nonrecurring sum of two hundred thousand dollars ($200,000) and the recurring sum of five hundred eighty‑five thousand dollars ($585,000), beginning in the 2026‑2027 fiscal year, to contract with Year13, Inc. (Year13), to replatform, host, and maintain the NC Careers website, utilizing the Year13 proprietary system. The contract shall, at a minimum, require Year13 to operationalize its platform to serve as the unified infrastructure for NC Careers, with build‑outs prioritizing functionality that supports individualized career planning, integration with programs of study and industry‑related credentials, information on licensure requirements as applicable, and use by career counselors, advisors, and coaches embedded throughout a learner's experience across education and workforce systems.

PART VI. NORTH CAROLINA COLLABORATORY TO EVALUATE AND REPORT ON THE WORKFORCE ACT OF 2026

SECTION 6.(a)  The North Carolina Collaboratory (Collaboratory) shall evaluate the programs and initiatives established in Parts I through V of this act each academic year through the 2029‑2030 academic year. The Collaboratory shall report the results of its evaluation to the Joint Legislative Education Oversight Committee by March 15 of each year through March 15, 2030. Each report shall include the following information:

(1)        The total number of students and adult learners engaging with each program or initiative established in this act.

(2)        The total funds expended to implement, design, and operate each program or initiative.

(3)        The effects of the programs and initiatives in this act on achieving postsecondary attainment and workforce outcomes.

SECTION 6.(b)  There is appropriated from the General Fund to the Board of Governors of The University of North Carolina for the 2026‑2027 fiscal year the sum of six hundred thousand dollars ($600,000) in nonrecurring funds to be allocated to the North Carolina Collaboratory to conduct the evaluation and report described in this section.

PART VII. CAREER DEVELOPMENT PILOT PROGRAM

SECTION 7.(a)  Pilot Program Established; Purpose. – The Superintendent of Public Instruction shall create an Annual Career Development Plan Pilot Program (Program) for students entering the seventh grade at select schools during the 2026‑2027 and 2027‑2028 school years and continuing through the students' graduation from high school. The purpose of the Program shall be to evaluate the efficacy of reviewing Career Development Plans (Plans) annually to better align students for on‑time graduation and achievement of college and career goals and to ensure that all students graduate from high school college or career ready.

SECTION 7.(b)  Definitions. – The following definitions apply to this section:

(1)        Career Development Plan. – An individual plan created by each student that establishes the student's plan throughout middle and high school for graduation and career development pursuant to G.S. 115C‑158.10.

(2)        Local board of education. – A local board of education governing a partnered school.

(3)        Parent. – Defined in G.S. 115C‑76.1.

(4)        Partnered school. – A middle school and high school governed by a local board of education where at least half of the student population of the middle school is assigned to attend the associated high school.

SECTION 7.(c)  Partnered Schools. – The Superintendent shall select 12 partnered schools that are proportionally representative of the population size and geographic distribution of public high schools in the State. The Superintendent shall provide a process for schools to apply to participate in the Program as partnered schools. The Superintendent shall be responsible for the final selection of partnered schools. If there are fewer than 12 applicants, the Superintendent shall collaborate with local superintendents to select schools to be partnered schools. Partnered schools shall have each student entering the seventh grade during the 2026‑2027 and 2027‑2028 school years complete a review of Plans each year until graduating from high school.

SECTION 7.(d)  Local Board of Education and IEP Support. – The local board of education shall ensure that students in partnered schools are provided assistance by a school counselor and planning time during the instructional day each school year to update their Plans. For students with disabilities, the student's IEP team, if applicable, may assist the student in completing and updating the Plan. Updates to Plans shall be made prior to student scheduling of courses for the next school year.

SECTION 7.(e)  Parental Involvement. – Partnered schools shall encourage parents to participate in development of Plans with their students and to sign a form provided by the school acknowledging the annual revisions of the Plans. Local boards of education shall ensure that Plans are easily accessible to students and parents and shall provide parents (i) annual written notice of the creation or revision of a Plan, (ii) information on how to access the Plan, (iii) a listing of course offerings for the next school year with a description of the content of each course, and (iv) high school graduation requirements where appropriate. Prior to creating or updating a student's Plan, a school counselor shall attempt to meet with the student's parent, either in person or virtually, to explain the possible effects that the Plan might have on the student's graduation requirements and career development planning. Beginning in the tenth grade and continuing throughout the student's high school enrollment, a school counselor shall provide each student and parent information regarding State and federal need‑based and merit‑based financial aid programs to support postsecondary education and training using information provided by the State Education Assistance Authority and College Foundation of North Carolina. The school counselor shall also provide information on the Federal Free Application for Federal Student Aid (FAFSA) and its use and notify the parent that information included in the FAFSA is confidential and not accessible by the school.

SECTION 7.(f)  Initial Career Development Plans. – Students entering seventh grade in partnered schools shall develop an initial Career Development Plan which will provide guidance as students develop Plans.

SECTION 7.(g)  Annual Career Development Plan Updates. – In partnered schools, Plans shall be updated annually in addition to the following information being provided to students:

(1)        For eighth grade students, by the end of the school year, a list of the required core courses to be taken in ninth and tenth grade.

(2)        For tenth grade students, an identification of the graduation requirements relevant to the student's chosen postsecondary goals based on the student's career development planning.

(3)        For eleventh grade students not meeting the career and college readiness standards established by the State Board of Community Colleges, a plan for enrolling in remedial coursework for his or her senior year.

(4)        Any other minimum requirements established by the Superintendent.

SECTION 7.(h)  Reporting Requirement. – The North Carolina Collaboratory (Collaboratory), in collaboration with the superintendent of a local school administrative unit that has a partnered school participating in the Program, shall develop reporting requirements for partnered schools participating in the Program to provide information on the effectiveness of the annual review of the Plans. The Collaboratory shall report to the Joint Legislative Education Oversight Committee by August 15, 2027, and each year thereafter on the progress of the Program, including any logistical issues that have arisen with the Program. A final report on the Program shall be submitted by August 15, 2033.

SECTION 7.(i)  This section is effective when it becomes law and applies beginning with the 2026‑2027 school year.

part VIII. CONSOLIDATED TEACHER BONUS PROGRAM AND REVISE CTE BONUSES

SECTION 8.(a)  Article 20 of Chapter 115C of the General Statutes is amended by adding the following new section to read:

§ 115C‑302.9.  Teacher bonuses.

(a)        Program. – The State Board of Education shall establish a consolidated teacher bonus program to reward teacher performance and encourage student learning and improvement. To attain this goal, to the extent funds are made available for this purpose, the Department of Public Instruction shall administer bonus pay to qualifying teachers whose salaries are supported from State funds in January of each year, based on data from the prior school year, in accordance with this section.

(b)        Definitions. – For purposes of this section, the following definitions shall apply:

(1)        Eligible advanced course teacher. – A teacher of Advanced Placement courses, International Baccalaureate Diploma Programme courses, or the Cambridge Advanced International Certificate of Education (AICE) program who meets the following criteria:

a.         Is employed by, or retired having last held a position at, one or more of the following:

1.         A qualifying public school unit.

2.         The North Carolina Virtual Public School program.

b.         Taught one or more students who received a score listed in subsection (c) of this section.

(2)        Eligible career and technical education (CTE) teacher. – A teacher who meets the following criteria:

a.         Is employed by, or retired having last held a position at, a qualifying public school unit.

b.         Taught one or more students who attained industry certifications or credentials that are approved by the North Carolina Workforce Credentials Advisory Council.

(3)        Eligible growth teacher. – A teacher who meets at least one of the following criteria:

a.         Is employed by, or retired having last held a position at, a qualifying public school unit and meets one of the following criteria:

1.         Is in the top twenty‑five percent (25%) of teachers in the State according to the EVAAS student growth index score for third grade reading from the previous school year.

2.         Is in the top twenty‑five percent (25%) of teachers in the State according to the EVAAS student growth index score for fourth or fifth grade reading from the previous school year.

3.         Is in the top twenty‑five percent (25%) of teachers in the State according to the EVAAS student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year.

b.         Is employed by, or retired having last held a position at, a local school administrative unit and meets one of the following criteria:

1.         Is in the top twenty‑five percent (25%) of teachers in the teacher's respective local school administrative unit according to the EVAAS student growth index score for third grade reading from the previous school year.

2.         Is in the top twenty‑five percent (25%) of teachers in the teacher's respective local school administrative unit according to the EVAAS student growth index score for fourth or fifth grade reading from the previous school year.

3.         Is in the top twenty‑five percent (25%) of teachers in the teacher's respective local school administrative unit according to the EVAAS student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year.

c.         Was employed by a local school administrative unit that employed in the previous school year three or fewer total teachers in that teacher's grade level as long as the teacher has an EVAAS student growth index score from the previous school year of exceeded expected growth in one of the following subject areas:

1.         Third grade reading.

2.         Fourth or fifth grade reading.

3.         Fourth, fifth, sixth, seventh, or eighth grade mathematics.

(4)        EVAAS. – The Education Value‑Added Assessment System.

(5)        Predecessor bonus programs. – All of the following:

a.         The Advanced Placement/International Baccalaureate/Cambridge AICE Teacher Bonus Program provided in Section 8.8 of S.L. 2016‑94, as amended by Section 8.8B of S.L. 2017‑57, Section 2.10 of S.L. 2017‑197, and Section 8.10 of S.L. 2018‑5.

b.         The Industry Certifications and Credentials Teacher Bonus Program provided in Section 8.9 of S.L. 2016‑94, as amended by Section 8.8B of S.L. 2017‑57, Section 2.10 of S.L. 2017‑197, and Section 8.10 of S.L. 2018‑5.

c.         The Third Grade Read to Achieve Teacher Bonus Program provided in Section 8.8C of S.L. 2017‑57, as amended by Section 2.10 of S.L. 2017‑197 and Section 8.10 of S.L. 2018‑5.

d.         The Fourth and Fifth Grade Reading Teacher Bonus Program provided in Section 8.8D of S.L. 2017‑57, as amended by Section 8.11 of S.L. 2018‑5.

e.         The Fourth to Eighth Grade Math Teacher Bonus Program provided in Section 8.8E of S.L. 2017‑57, as amended by Section 8.12 of S.L. 2018‑5.

f.          Advanced course and CTE Teacher bonuses provided in Section 7A.4 of S.L. 2021‑180.

g.         Bonuses for Teachers Based on Student Growth provided in Section 7A.2 of S.L. 2022‑74.

h.         The Consolidated Teacher Bonus Program provided in Section 7A.3 of S.L. 2023‑134.

(6)        Qualifying public school unit. – Any of the following:

a.         A local school administrative unit.

b.         A charter school.

c.         A regional school.

d.         A school providing elementary or secondary instruction operated by The University of North Carolina under Article 29A of Chapter 116 of the General Statutes.

(7)        Qualifying teacher. – An eligible teacher who meets one of the following criteria:

a.         Remains employed teaching in the same qualifying public school unit or, if an eligible advanced course teacher is only employed by the North Carolina Virtual Public School program, remains employed teaching in that program, at least from the school year the data is collected until January 1 of the corresponding school year that the bonus is paid.

b.         Retired, between the last day of the school year in which the data is collected and January 1 of the corresponding school year in which the bonus is paid, after attaining one of the following:

1.         The age of at least 65 with five years of creditable service.

2.         The age of at least 60 with 25 years of creditable service.

3.         Thirty years of creditable service.

(c)        Advanced Course Bonuses. – A bonus in the amount of fifty dollars ($50.00) shall be provided to qualifying advanced course teachers for each student taught in each advanced course who receives the following score:

(1)        For Advanced Placement courses, a score of three or higher on the College Board Advanced Placement Examination.

(2)        For International Baccalaureate Diploma Programme courses, a score of four or higher on the International Baccalaureate course examination.

(3)        For the Cambridge AICE program, a score of E or higher on the Cambridge AICE program examinations.

(d)       CTE Bonuses. – For qualifying career and technical education teachers, bonuses shall be provided in the following amounts:

(1)        A bonus in the amount of twenty‑five dollars ($25.00) for each student taught by a teacher who provided instruction in a course that led to the attainment of an industry certification or credential with a twenty‑five dollar ($25.00) value ranking as determined under subsection (e) of this section.

(2)        A bonus in the amount of fifty dollars ($50.00) for each student taught by a teacher who provided instruction in a course that led to the attainment of an industry certification or credential with a fifty dollar ($50.00) value ranking as determined under subsection (e) of this section.

(e)        CTE Course Value Ranking. – The Department of Commerce, in consultation with the North Carolina Workforce Credentials Advisory Council, shall assign a value ranking for each industry certification and credential based on academic rigor and employment value in accordance with this subsection. Fifty percent (50%) of the ranking shall be based on academic rigor and the remaining fifty percent (50%) on employment value. Academic rigor and employment value shall be based on the following elements:

(1)        Academic rigor shall be based on the number of instructional hours, including work experience or internship hours, required to earn the industry certification or credential, with extra weight given for coursework that also provides community college credit.

(2)        Employment value shall be based on the entry wage, growth rate in employment for each occupational category, and average annual openings for the primary occupation linked with the industry certification or credential.

(f)        Statewide Growth Bonuses. – The Department shall provide bonuses to qualifying teachers who are eligible teachers under sub‑subdivision a. of subdivision (3) of subsection (b) of this section, as follows:

(1)        The sum of five million dollars ($5,000,000) shall be allocated for bonuses to eligible teachers under sub‑sub‑subdivision a.1. of subdivision (3) of subsection (b) of this section. These funds shall be distributed equally among qualifying teachers.

(2)        A bonus in the amount of two thousand dollars ($2,000) shall be awarded to each qualifying teacher who is an eligible teacher under sub‑sub‑subdivision a.2. of subdivision (3) of subsection (b) of this section.

(3)        A bonus in the amount of two thousand dollars ($2,000) shall be awarded to each qualifying teacher who is an eligible teacher under sub‑sub‑subdivision a.3. of subdivision (3) of subsection (b) of this section.

(g)        Local Growth Bonuses. – The Department shall provide bonuses to eligible teachers under sub‑subdivisions b. and c. of subdivision (3) of subsection (b) of this section, as follows:

(1)        The sum of five million dollars ($5,000,000) shall be allocated for bonuses to eligible EVAAS teachers under sub‑sub‑subdivisions b.1. and c.1. of subdivision (3) of subsection (b) of this section. These funds shall be divided proportionally based on average daily membership in third grade for each local school administrative unit and then distributed equally among qualifying third grade reading teachers in each local school administrative unit.

(2)        A bonus in the amount of two thousand dollars ($2,000) shall be awarded to each qualifying teacher who is an eligible teacher under sub‑sub‑subdivision b.2. or c.2. of subdivision (3) of subsection (b) of this section.

(3)        A bonus in the amount of two thousand dollars ($2,000) shall be awarded to each qualifying teacher who is an eligible teacher under sub‑sub‑subdivision b.3. or c.3. of subdivision (3) of subsection (b) of this section.

(h)        Limitations and Other Criteria. – The following additional limitations and other criteria shall apply to the program:

(1)        Bonus funds awarded to a teacher pursuant to subsection (c), subsection (d), subdivision (1) of subsection (f), and subdivision (1) of subsection (g) of this section shall not exceed four thousand dollars ($4,000) per subsection or subdivision in any given school year.

(2)        A qualifying teacher who is an eligible teacher under sub‑sub‑subdivision a.1., b.1., or c.1. of subdivision (3) of subsection (b) of this section may receive a bonus under both subdivision (1) of subsection (f) and subdivision (1) of subsection (g) of this section but shall not receive more than seven thousand dollars ($7,000) pursuant to subdivision (1) of subsection (f) and subdivision (1) of subsection (g) of this section in any given school year.

(3)        A qualifying teacher who is an eligible teacher under sub‑sub‑subdivision a.2., b.2., or c.2. of subdivision (3) of subsection (b) of this section may receive a bonus under both subdivision (2) of subsection (f) and subdivision (2) of subsection (g) of this section but shall not receive more than two bonuses pursuant to subdivision (2) of subsection (f) and subdivision (2) of subsection (g) of this section in any given school year.

(4)        A qualifying teacher who is an eligible teacher under sub‑sub‑subdivision a.3., b.3., or c.3. of subdivision (3) of subsection (b) of this section may receive a bonus under both subdivision (3) of subsection (f) and subdivision (3) of subsection (g) of this section but shall not receive more than two bonuses pursuant to subdivision (3) of subsection (f) and subdivision (3) of subsection (g) of this section in any given school year.

(i)         Bonuses Not Compensation. – Bonuses awarded to a teacher pursuant to this section shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive. Notwithstanding G.S. 135‑1(7a), the bonuses awarded under this section are not compensation under Article 1 of Chapter 135 of the General Statutes, Retirement System for Teachers and State Employees.

(j)         Study and Report. – The North Carolina Collaboratory (Collaboratory) shall study the effect of the program on teacher performance and retention. The Collaboratory shall report the results of its findings and the amount of bonuses awarded to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by March 15 of each year. The report shall include, at a minimum, the following information:

(1)        Number of students enrolled and taking examinations in each of the following categories of courses:

a.         Advanced Placement.

b.         International Baccalaureate Diploma Programme.

c.         Cambridge AICE program.

d.         Courses needed for the attainment of an industry certification or credential.

(2)        Number of students receiving outcomes on examinations resulting in the award of a bonus for a teacher in each category of courses identified in subdivision (1) of this subsection.

(3)        Number of teachers receiving a bonus in each category of courses identified in subdivision (1) of this subsection.

(4)        The amounts awarded to teachers for each category of courses identified in subdivision (1) of this subsection.

(5)        The type of industry certifications and credentials earned by the students, the value ranking for each certification and credential, the number of bonuses earned for each certification or credential, and the total bonus amount awarded for each certification or credential.

(6)        Average bonus amount awarded to each qualifying teacher who is an eligible teacher under sub‑sub‑subdivision a.1., b.1., or c.1. of subdivision (3) of subsection (b) of this section.

(7)        The percentage of teachers who received a bonus pursuant to this section and were eligible to receive a bonus for teaching in the same grade level or course in either or both of the prior two school years pursuant to this section or a predecessor bonus program.

(8)        The percentage of teachers who received a bonus pursuant to this section and received a bonus for teaching in the same grade level or course in either or both of the prior two school years pursuant to this section or a predecessor bonus program.

(9)        The statistical relationship between a teacher receiving a bonus pursuant to this section and receiving a bonus for teaching in the same grade level or course in one or more prior school years pursuant to this section or a predecessor bonus program.

(10)      The distribution of statewide and local growth bonuses awarded pursuant to this section as among qualifying public school units and, where applicable, schools within those units.

SECTION 8.(b)  This section becomes effective July 1, 2026, and applies beginning with bonuses awarded in January of 2028 based on data from the 2026‑2027 school year.

PART IX. EFFECTIVE DATE

SECTION 9.  Except as otherwise provided, this act becomes effective July 1, 2026.