AN ACT to provide paid parental leave to state employees and other state‑supported personnel.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 2 of Chapter 126 of the General Statutes is amended by adding a new section to read:

§ 126‑8.6.  Paid parental leave for State employees and State‑supported personnel.

(a)        Full‑Time Employees. – The State Human Resources Commission shall adopt rules and policies to provide that a permanent, full‑time State employee may take up to eight weeks of paid parental leave in addition to any other leave available to the employee. The employee must have been continuously employed by the State for at least 12 months immediately preceding the first request for paid parental leave.

(b)        Part‑Time Employees. – The State Human Resources Commission shall adopt rules and policies to provide that a permanent, part‑time State employee may take a prorated amount of up to four weeks of paid parental leave in addition to any other leave available to the employee. The employee must have been continuously employed by the State for at least 12 months immediately preceding the first request for paid parental leave.

(c)        Program Requirements. – The paid parental leave authorized by this section:

(1)        Is provided (i) for the birth of the parent's child and to care for the newborn or (ii) for placement and adoption of a child and time for bonding.

(2)        Is available without exhaustion of the employee's sick and vacation leave.

(3)        Is in addition to, and not in lieu of, shared leave under G.S. 126‑8.3, or other leave authorized by federal or State law.

(4)        May not be used for retirement purposes.

(5)        Has no cash value upon termination from employment.

(d)       Applicability. – This section applies to all (i) State employees and (ii) State‑supported personnel with the appropriate governing board adopting rules and policies to provide paid parental leave to its employees as provided by this section.

(e)        Reporting. – By May 1, 2024, and then annually thereafter, the State Human Resources Commission, the State Board of Education, the State Board of Community Colleges, and all State agencies, departments, and institutions shall annually report to the Office of State Human Resources on the paid parental leave program.

SECTION 2.  G.S. 126‑5 is amended by adding a new subsection to read:

(c19)  The provisions of G.S. 126‑8.6 shall apply to all State employees, public school employees, and community college employees.

SECTION 3.  There is appropriated from the General Fund to a Reserve for Compensation the sum of ten million dollars ($10,000,000) in recurring funds for the 2023‑2024 fiscal year and the sum of ten million dollars ($10,000,000) in recurring funds for the 2024‑2025 fiscal year to fund the paid parental leave authorized by G.S. 126‑8.6, as enacted by this act.

SECTION 4.  This act becomes effective July 1, 2023.