AN ACT TO modify the current operations Appropriations Act of 2023 and to make other changes in the budget operations of the state.

The General Assembly of North Carolina enacts:

PART I. TITLE AND INTRODUCTION

TITLE OF ACT

SECTION 1.1.  This act shall be known as the Current Operations Appropriations Act of 2024.

INTRODUCTION

SECTION 1.2.  The appropriations made in this act are for maximum amounts necessary to provide the services and accomplish the purposes described in the budget in accordance with the State Budget Act. Savings shall be effected where the total amounts appropriated are not required to perform these services and accomplish these purposes, and the savings shall revert to the appropriate fund at the end of each fiscal year, except as otherwise provided by law.

PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND

GENERAL FUND APPROPRIATIONS

SECTION 2.1.(a)  Appropriations from the General Fund for the 2024‑2025 fiscal year set out in Section 2.1(a) of S.L. 2023‑134 are repealed. Appropriations from the General Fund for the budgets of the State departments, institutions, and agencies, and for other purposes as enumerated, are made for the 2024‑2025 fiscal year, according to the following schedule:

Current Operations – General Fund                                                                    FY 2024‑2025

EDUCATION

Community College System

      Requirements                                                                                                      2,041,421,512

      Less: Receipts                                                                                                        411,143,141

      Net Appropriation                                                                                            1,630,278,371

Public Instruction

      Requirements                                                                                                    13,946,592,337

      Less: Receipts                                                                                                     1,860,372,708

      Net Appropriation                                                                                          12,086,219,629

University of North Carolina

NC A&T University

      Requirements                                                                                                         241,838,043

      Less: Receipts                                                                                                          90,618,145

      Net Appropriation                                                                                               151,219,898

NC School of Science and Mathematics

      Requirements                                                                                                           45,831,072

      Less: Receipts                                                                                                            3,791,677

      Net Appropriation                                                                                                 42,039,395

NC State University – Academic Affairs

      Requirements                                                                                                         955,634,072

      Less: Receipts                                                                                                        439,317,357

      Net Appropriation                                                                                               516,316,715

NC State University – Ag. Research

      Requirements                                                                                                           79,228,032

      Less: Receipts                                                                                                          19,124,784

      Net Appropriation                                                                                                 60,103,248

NC State University – Coop. Extension

      Requirements                                                                                                           64,983,558

      Less: Receipts                                                                                                          18,874,550

      Net Appropriation                                                                                                 46,109,008

North Carolina Central University

      Requirements                                                                                                         145,479,077

      Less: Receipts                                                                                                          53,855,844

      Net Appropriation                                                                                                 91,623,233

UNC at Asheville

      Requirements                                                                                                           76,811,113

      Less: Receipts                                                                                                          23,886,242

      Net Appropriation                                                                                                 52,924,871

UNC at Chapel Hill – Academic Affairs

      Requirements                                                                                                         734,263,122

      Less: Receipts                                                                                                        377,889,533

      Net Appropriation                                                                                               356,373,589

UNC at Chapel Hill – Area Health Ed.

      Requirements                                                                                                           56,271,874

      Less: Receipts                                                                                                                          0

      Net Appropriation                                                                                                 56,271,874

UNC at Chapel Hill – Health Affairs

      Requirements                                                                                                         370,568,724

      Less: Receipts                                                                                                        138,758,876

      Net Appropriation                                                                                               231,809,848

UNC at Charlotte

      Requirements                                                                                                         505,032,624

      Less: Receipts                                                                                                        198,092,793

      Net Appropriation                                                                                               306,939,831

UNC at Greensboro

      Requirements                                                                                                         315,735,257

      Less: Receipts                                                                                                        118,202,973

      Net Appropriation                                                                                               197,532,284

UNC at Pembroke

      Requirements                                                                                                         126,354,011

      Less: Receipts                                                                                                          28,172,155

      Net Appropriation                                                                                                 98,181,856

UNC at Wilmington

      Requirements                                                                                                         315,641,547

      Less: Receipts                                                                                                        116,694,281

      Net Appropriation                                                                                               198,947,266

UNC BOG – Aid to Private Institutions

      Requirements                                                                                                             1,709,300

      Less: Receipts                                                                                                                          0

      Net Appropriation                                                                                                   1,709,300

UNC BOG – Institutional Programs

      Requirements                                                                                                         508,293,853

      Less: Receipts                                                                                                          60,920,608

      Net Appropriation                                                                                               447,373,245

UNC BOG – Related Ed. Programs

      Requirements                                                                                                      1,291,540,818

      Less: Receipts                                                                                                        308,938,183

      Net Appropriation                                                                                               982,602,635

UNC School of the Arts

      Requirements                                                                                                           56,488,236

      Less: Receipts                                                                                                          17,148,612

      Net Appropriation                                                                                                 39,339,624

UNC System Office

      Requirements                                                                                                           47,640,384

      Less: Receipts                                                                                                               259,217

      Net Appropriation                                                                                                 47,381,167

Western Carolina University

      Requirements                                                                                                         187,579,946

      Less: Receipts                                                                                                          31,517,260

      Net Appropriation                                                                                               156,062,686

Winston‑Salem State University

      Requirements                                                                                                           93,955,473

      Less: Receipts                                                                                                          24,445,103

      Net Appropriation                                                                                                 69,510,370

Appalachian State University

      Requirements                                                                                                         316,188,983

      Less: Receipts                                                                                                        127,280,171

      Net Appropriation                                                                                               188,908,812

East Carolina Univ. – Academic Affairs

      Requirements                                                                                                         434,732,843

      Less: Receipts                                                                                                        170,125,795

      Net Appropriation                                                                                               264,607,048

East Carolina Univ. – Health Affairs

      Requirements                                                                                                         114,341,160

      Less: Receipts                                                                                                          13,587,770

      Net Appropriation                                                                                               100,753,390

Elizabeth City State University

      Requirements                                                                                                           51,830,539

      Less: Receipts                                                                                                            5,670,169

      Net Appropriation                                                                                                 46,160,370

Fayetteville State University

      Requirements                                                                                                           92,656,751

      Less: Receipts                                                                                                          13,945,205

      Net Appropriation                                                                                                 78,711,546

HEALTH AND HUMAN SERVICES

Aging and Adult Services

      Requirements                                                                                                         165,186,312

      Less: Receipts                                                                                                        110,494,543

      Net Appropriation                                                                                                 54,691,769

Central Management and Support

      Requirements                                                                                                         517,866,810

      Less: Receipts                                                                                                        291,209,868

      Net Appropriation                                                                                               226,656,942

Child and Family Well‑Being

      Requirements                                                                                                         599,259,277

      Less: Receipts                                                                                                        538,484,569

      Net Appropriation                                                                                                 60,774,708

Child Development and Early Education

      Requirements                                                                                                      1,072,880,763

      Less: Receipts                                                                                                        773,959,346

      Net Appropriation                                                                                               298,921,417

Emp. & Indep. for People with Disabilities

      Requirements                                                                                                         188,177,520

      Less: Receipts                                                                                                        143,833,389

      Net Appropriation                                                                                                 44,344,131

Health Benefits

      Requirements                                                                                                    32,354,486,198

      Less: Receipts                                                                                                   26,552,698,977

      Net Appropriation                                                                                            5,801,787,221

Health Services Regulation

      Requirements                                                                                                           82,772,672

      Less: Receipts                                                                                                          56,847,481

      Net Appropriation                                                                                                 25,925,191

Mental Hlth./Dev. Disabl./Subs. Use Serv.

      Requirements                                                                                                      1,959,556,938

      Less: Receipts                                                                                                     1,102,724,523

      Net Appropriation                                                                                               856,832,415

Public Health

      Requirements                                                                                                         510,430,526

      Less: Receipts                                                                                                        369,058,932

      Net Appropriation                                                                                               141,371,594

Services for the Blind/Deaf/Hard of Hearing

      Requirements                                                                                                           45,663,407

      Less: Receipts                                                                                                          36,130,573

      Net Appropriation                                                                                                   9,532,834

Social Services

      Requirements                                                                                                      2,201,775,740

      Less: Receipts                                                                                                     1,968,444,916

      Net Appropriation                                                                                               233,330,824

AGRICULTURE, NATURAL, AND ECONOMIC RESOURCES

Agriculture and Consumer Services

      Requirements                                                                                                         277,760,393

      Less: Receipts                                                                                                          92,338,831

      Net Appropriation                                                                                               185,421,562

Commerce

      Requirements                                                                                                         642,483,678

      Less: Receipts                                                                                                        439,123,122

      Net Appropriation                                                                                               203,360,556

Environmental Quality

      Requirements                                                                                                      1,189,200,599

      Less: Receipts                                                                                                        190,089,646

      Net Appropriation                                                                                               999,110,953

Labor

      Requirements                                                                                                           44,778,761

      Less: Receipts                                                                                                          18,211,608

      Net Appropriation                                                                                                 26,567,153

Natural and Cultural Resources

      Requirements                                                                                                         349,419,353

      Less: Receipts                                                                                                          55,450,747

      Net Appropriation                                                                                               293,968,606

Wildlife Resources Commission

      Requirements                                                                                                           98,784,029

      Less: Receipts                                                                                                          81,917,250

      Net Appropriation                                                                                                 16,866,779

JUSTICE AND PUBLIC SAFETY

Administrative Office of the Courts

      Requirements                                                                                                         800,367,351

      Less: Receipts                                                                                                            5,721,889

      Net Appropriation                                                                                               794,645,462

Correction

      Requirements                                                                                                      2,076,388,295

      Less: Receipts                                                                                                          34,807,745

      Net Appropriation                                                                                            2,041,580,550

Indigent Defense Services

      Requirements                                                                                                         187,012,376

      Less: Receipts                                                                                                          14,428,756

      Net Appropriation                                                                                               172,583,620

Justice

      Requirements                                                                                                         113,674,691

      Less: Receipts                                                                                                          45,398,277

      Net Appropriation                                                                                                 68,276,414

Public Safety

      Requirements                                                                                                         866,070,683

      Less: Receipts                                                                                                        201,107,096

      Net Appropriation                                                                                               664,963,587

State Bureau of Investigation

      Requirements                                                                                                         146,692,925

      Less: Receipts                                                                                                          23,496,402

      Net Appropriation                                                                                               123,196,523

GENERAL GOVERNMENT

Administration

      Requirements                                                                                                           81,257,239

      Less: Receipts                                                                                                          12,775,751

      Net Appropriation                                                                                                 68,481,488

Administrative Hearings

      Requirements                                                                                                             9,944,325

      Less: Receipts                                                                                                            1,245,283

      Net Appropriation                                                                                                   8,699,042

Auditor

      Requirements                                                                                                           26,390,841

      Less: Receipts                                                                                                            6,969,150

      Net Appropriation                                                                                                 19,421,691

Budget and Management

      Requirements                                                                                                           17,945,527

      Less: Receipts                                                                                                            4,827,254

      Net Appropriation                                                                                                 13,118,273

Budget and Management – Special Approp.

      Requirements                                                                                                           57,275,000

      Less: Receipts                                                                                                          46,725,000

      Net Appropriation                                                                                                 10,550,000

Controller

      Requirements                                                                                                           37,174,846

      Less: Receipts                                                                                                               983,386

      Net Appropriation                                                                                                 36,191,460

Elections

      Requirements                                                                                                             9,961,793

      Less: Receipts                                                                                                               134,035

      Net Appropriation                                                                                                   9,827,758

General Assembly

      Requirements                                                                                                         101,208,542

      Less: Receipts                                                                                                               899,760

      Net Appropriation                                                                                               100,308,782

Governor

      Requirements                                                                                                             7,847,965

      Less: Receipts                                                                                                            1,024,999

      Net Appropriation                                                                                                   6,822,966

Housing Finance Authority

      Requirements                                                                                                         114,254,433

      Less: Receipts                                                                                                        103,594,433

      Net Appropriation                                                                                                 10,660,000

Human Resources

      Requirements                                                                                                           12,386,199

      Less: Receipts                                                                                                               887,646

      Net Appropriation                                                                                                 11,498,553

Industrial Commission

      Requirements                                                                                                           24,516,649

      Less: Receipts                                                                                                          20,739,136

      Net Appropriation                                                                                                   3,777,513

Insurance

      Requirements                                                                                                           64,285,767

      Less: Receipts                                                                                                            5,337,721

      Net Appropriation                                                                                                 58,948,046

Lieutenant Governor

      Requirements                                                                                                             1,360,188

      Less: Receipts                                                                                                                   5,324

      Net Appropriation                                                                                                   1,354,864

Military and Veterans Affairs

      Requirements                                                                                                           10,235,329

      Less: Receipts                                                                                                                 29,655

      Net Appropriation                                                                                                 10,205,674

Revenue

      Requirements                                                                                                         191,769,860

      Less: Receipts                                                                                                          69,052,270

      Net Appropriation                                                                                               122,717,590

Secretary of State

      Requirements                                                                                                           22,472,805

      Less: Receipts                                                                                                               399,736

      Net Appropriation                                                                                                 22,073,069

Treasurer

      Requirements                                                                                                           80,760,242

      Less: Receipts                                                                                                          80,551,168

      Net Appropriation                                                                                                      209,074

Treasurer – Other Retirement Plans/Benefits

      Requirements                                                                                                           24,050,988

      Less: Receipts                                                                                                                          0

      Net Appropriation                                                                                                 24,050,988

INFORMATION TECHNOLOGY

Information Technology

      Requirements                                                                                                         139,687,894

      Less: Receipts                                                                                                          56,163,292

      Net Appropriation                                                                                                 83,524,602

RESERVES AND LOTTERY

General Fund Reserve – Reverting Funds

      Requirements                                                                                                                           0

      Less: Receipts                                                                                                                          0

      Net Appropriation                                                                                                                 0

General Fund Reserves

      Requirements                                                                                                             1,700,000

      Less: Receipts                                                                                                        800,000,000

      Net Appropriation                                                                                              (798,300,000)

      Total Requirements                                                                                        70,800,919,990

      Less: Total Receipts                                                                                        39,086,056,637

      Total Net Appropriation                                                                                31,714,863,353

SECTION 2.1.(b)  For purposes of this act and the Committee Report described in Section 43.2 of this act, the requirements set forth in this section represent the total amount of funds, including agency receipts, appropriated to an agency, department, or institution.

General Fund Availability

SECTION 2.2.(a)  The General Fund availability statement set out in Section 2.2(a) of S.L. 2023‑134 applies to the 2023‑2024 fiscal year only. The General Fund availability used in adjusting the 2024‑2025 budget is shown below:

                                                                                                                                   FY 2024‑2025

Unappropriated Balance Remaining FY 2023‑24                                               1,564,437,931

Anticipated Reversions                                                                                                500,000,000

FY 2023‑24 Anticipated Overcollections                                                                    188,138,702

Total, Prior Year‑End Fund Balance                                                                   2,252,576,633

Revised Consensus Revenue Forecast                                                                                        

Tax Revenue                                                                                                           32,574,000,000

Non‑Tax Revenue                                                                                                     1,590,300,000

Total, Tax and Non‑Tax Revenue                                                                       34,164,300,000

Revenue Adjustments                                                                                                                   

Adjustments to Tax Revenue                                                                                         (2,500,000)

Adjustments to Non‑Tax Revenue                                                                                  4,953,408

Total, Revenue Adjustments                                                                                         2,453,408

Statutory Reservations of Revenue                                                                                             

State Capital and Infrastructure Fund                                                                     (1,461,333,238)

Total, Statutory Reserves                                                                                     (1,461,333,238)

Discretionary Reservations of Revenue                                                                                      

State Capital and Infrastructure Fund                                                                        (700,000,000)

Savings Reserve                                                                                                         (125,000,000)

Clean Water and Drinking Water Reserve                                                              (1,000,000,000)

Regional Economic Development Reserve                                                                (550,000,000)

Economic Development Project Reserve                                                                   (155,100,000)

Medicaid Contingency Reserve                                                                                 (100,000,000)

State Emergency Response and Disaster Relief Fund                                                 (75,000,000)

Housing Reserve                                                                                                          (10,000,000)

Transportation Reserve                                                                                              (100,000,000)

NCInnovation Reserve                                                                                               (250,000,000)

Retiree Supplement Reserve                                                                                        (79,804,523)

Total, Discretionary Reserves                                                                              (3,144,904,523)

Revised Total General Fund Availability                                                           31,813,092,280

Less General Fund Net Appropriations                                                                  31,714,863,353

Unappropriated Balance Remaining                                                                         98,228,927

SECTION 2.2.(c)  Section 2.2(c) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(c)  Medicaid Contingency Reserve. – The State Controller shall reserve to the Medicaid Contingency Reserve described in G.S. 143C‑4‑11 from funds available in the General Fund the sum of four hundred million dollars ($400,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of two hundred fifty million dollars ($250,000,000) one hundred million dollars ($100,000,000) in nonrecurring funds for the 2024‑2025 fiscal year. The State Controller shall transfer from funds available in the Medicaid Contingency Reserve to the Department of Health and Human Services, Division of Health Benefits, the sum of two hundred million dollars ($200,000,000) in nonrecurring funds for the 2024‑2025 fiscal year, and the funds transferred are appropriated for the fiscal year in which they are transferred.

SECTION 2.2.(d)  Section 2.2(d) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(d)  IT Reserve. – The State Controller shall reserve to the Information Technology Reserve established in Section 2.2(h) of S.L. 2021‑180 from funds available in the General Fund the sum of four hundred fifty million dollars ($450,000,000) in nonrecurring funds for the 2023‑2024 fiscal year. The State Controller shall transfer funds available in the Information Technology Reserve to State agencies and departments for information technology projects in accordance with the following schedule, and the funds transferred are appropriated for the fiscal year in which they are transferred:

State Agency or Department                                        2023‑2024                 2024‑2025

(1)        Department of Information Technology

(Budget Code: 14660)                                                   $43,546,653             $14,806,653 $39,395,653

(2)        Department of Environmental Quality

(Budget Code: 14300)                                                       7,500,000                 2,500,000

(3)        Department of Environmental Quality‑Spec. Rev.

            (Budget Code: 24317)                                                       5,510,000                 5,510,000

(4)        General Assembly

            (Budget Code: 21000)                                                     15,000,000                               0

(5)        Department of Public Safety

            (Budget Code: 14550)                                                       3,000,000                               0

(6)        Department of Health and Human Services

(Budget Code: 14440)                                                       8,180,000                    680,000

(7)        Department of Health and Human Services

(Budget Code: 14410)                                                     14,177,000                               0

(8)        University of North Carolina – BOG Instit. Pgms.

            (Budget Code: 16011)                                                       3,250,000                               0

(9)        University of North Carolina – BOG Related Ed. Pgms.

            (Budget Code: 16012)                                                     22,622,000               25,518,000

(10)      State Board of Elections                                                                   

            (Budget Code: 18025)                                                       5,600,000                               0

(11)      Office of State Human Resources

            (Budget Code: 14111)                                                       5,600,000                  0750,000

(12)      NC Community College System                                                      

            (Budget Code: 26802)                                                                     0               15,000,000 32,983,156

(12a)    NC Community College System

            (Budget Code: 16800)                                                                     0                 1,500,000

(13)      State Capital and Infrastructure Fund

            (Budget Code: 24001)                                                       8,000,000                               0

(14)      Revenue

            (Budget Code: 14700)                                                       1,650,000                               0

(15)      Administrative Office of the Courts

            (Budget Code: 12000)                                                       5,000,000                 5,000,000

0

(16)      State Bureau of Investigation

            (Budget Code: 15020)                                                                     0                 2,250,000

(17)      University of North Carolina at Charlotte

            (Budget Code: 16050)                                                                     0               16,500,000

(18)      Appalachian State University

            (Budget Code: 16080)                                                                     0                 1,000,000

(19)      School of Science and Mathematics

            (Budget Code: 16094)                                                                     0                    500,000

(20)      Department of Transportation–DMV

            (Budget Code: 84210)                                                                     0                    250,000

SECTION 2.2.(e)  Section 2.2(e) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(e)  SERDRF. – The State Controller shall reserve to the State Emergency Response and Disaster Relief Fund established in G.S. 166A‑19.42 from funds available in the General Fund the sum of seventy‑five million dollars ($75,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of seventy‑five million dollars ($75,000,000) in nonrecurring funds for the 2024‑2025 fiscal year. The State Controller shall transfer funds available in the State Emergency Response and Disaster Relief Fund to State agencies and departments for the purposes described in Section 5.6 of this act and in accordance with the following schedule. The funds transferred are appropriated for the five‑year period ending June 30, 2028.

State Agency or Department                                        2023‑2024                 2024‑2025

(1)        Emergency Management

(Budget Code: 24552)                                                 $174,601,092                             $0

(2)        Office of State Budget and Management – Special

            Appropriations (Budget Code: 13085)                            22,255,000                               0

(3)        DACS–Soil & Water Conservation

(Budget Code: 23704)                                                     20,000,000                               0

(4)        Department of Insurance

            (Budget Code: 63903)                                                     20,000,000                               0

(5)        Department of Environmental Quality

            (Budget Code: 14300)                                                       7,500,000                               0

(6)        Department of Environmental Quality – Disaster

(Budget Code: 24310)                                                     10,493,953                    987,906

(7)        Wildlife Resources Commission

(Budget Code: 14350)                                                     11,000,000                               0

(8)        DEQ – Special Revenue

(Budget Code: 24317)                                                     10,000,000               10,000,000

(9)        UNC at Chapel Hill – Academic Affairs

(Budget Code: 16020)                                                          330,000                    330,000

(10)      NC School of Science & Math

            (Budget Code: 16094)                                                          264,000                               0

(11)      North Carolina Central University

            (Budget Code: 16090)                                                            50,000                               0

(12)      Department of Insurance–Public Prop. Ins. Enterprise Fund

            (Budget Code: 539XX)                                                                   0             200,000,000

SECTION 2.2.(f)  Section 2.2(f) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(f)  Retiree Supplement Reserve. – There is established in the General Fund a Retiree Supplement Reserve to provide funds for a four percent (4%) retiree supplement. supplement for the 2023‑2024 fiscal year and a two percent (2%) retiree supplement for the 2024‑2025 fiscal year. The State Controller shall reserve to the Retiree Supplement Reserve from funds available in the General Fund the sum of one hundred forty‑five million six hundred thousand dollars ($145,600,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of seventy‑nine million eight hundred four thousand five hundred twenty‑three dollars ($79,804,523) in nonrecurring funds for the 2024‑2025 fiscal year. The State Controller shall transfer to State agencies and departments the funds needed to provide the four percent (4%) supplement for the 2023‑2024 fiscal year and the two percent (2%) supplement for the 2024‑2025 fiscal year as provided in Section 39.27 of this act, and the funds transferred are appropriated for the fiscal year in which they are transferred.

SECTION 2.2.(h)  Section 2.2(h) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(h)  Economic Development Project Reserve. – The State Controller shall reserve to the Economic Development Project Reserve established in Section 2.2 of S.L. 2021‑180 from funds available in the General Fund the sum of six hundred thirty million dollars ($630,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of one hundred fifty‑five million one hundred thousand dollars ($100,000,000) ($155,100,000) for the 2024‑2025 fiscal year. The State Controller shall transfer funds available in the Economic Development Project Reserve to State agencies and departments for economic development initiatives in accordance with the following schedule, and the funds transferred are appropriated for the fiscal year in which they are transferred:

State Agency or Department                                        2023‑2024                 2024‑2025

(1)        Department of Commerce

(Budget Code: 14601)                                                   $10,000,000                             $0

$55,100,000

(2)        Department of Commerce

(Budget Code: 14602)                                                     10,600,000             108,400,000

(3)        Department of Environmental Quality

(Budget Code: 14300)                                                       1,000,000                               0

(4)        Department of Transportation

            (Budget Code: 84210)                                                                     0             150,000,000

SECTION 2.2.(i)  Section 2.2(i) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(i)  Housing Reserve. – The State Controller shall reserve to the Housing Reserve established in Section 2.2(k) of S.L. 2022‑74 from funds available in the General Fund the sum of forty‑five million dollars ($45,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of forty‑five ten million dollars ($45,000,000) ($10,000,000) in nonrecurring funds for the 2024‑2025 fiscal year. The State Controller shall transfer funds available in the Housing Reserve to the Housing Finance Agency (Budget Code: 13010) in the sum of forty‑five million dollars ($45,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of forty‑five ten million dollars ($45,000,000) ($10,000,000) in nonrecurring funds for the 2024‑2025 fiscal year, and those funds are appropriated for the fiscal year in which they are transferred.

SECTION 2.2.(n)  Section 2.2(n) of S.L. 2023‑134 reads as rewritten:

SECTION 2.2.(n)  Regional Economic Development Reserve. – There is established in the General Fund a Regional Economic Development Reserve. The State Controller shall reserve to the Regional Economic Development Reserve from funds available in the General Fund the sum of one billion two hundred fifty million dollars ($1,250,000,000) in nonrecurring funds for the 2023‑2024 fiscal year and and the sum of five hundred fifty million dollars ($550,000,000) in nonrecurring funds for the 2024‑2025 fiscal year. The State Controller shall transfer funds available in the Reserve in accordance with the following schedule, and the funds transferred are appropriated for the fiscal year in which the funds are transferred:

State Agency or Department                                        2023‑2024                 2024‑2025

(1)        Office of State Budget and Management – Spec. Approp.

            (Budget Code: 13085)                                              $1,245,350,000               $4,650,000

PART III. HIGHWAY FUND AND HIGHWAY TRUST FUND

Current Operations and Expansion/Highway Fund

SECTION 3.1.  Appropriations from the State Highway Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the fiscal year ending June 30, 2025, according to the following schedule. Amounts set out in parentheses are reductions from Highway Fund Appropriations for the 2024‑2025 fiscal year.

Highway Fund                                                                                                         FY 2024‑2025

Administration                                                                                                           $128,728,454

Division of Highways

      Administration                                                                                                         57,986,424

      Construction                                                                                                          117,543,078

      Maintenance                                                                                                       2,232,081,689

      Governor's Highway Safety Program                                                                           424,111

      OSHA                                                                                                                           358,030

Aid to Municipalities                                                                                                                      

      Powell Bill                                                                                                             225,875,000

Intermodal Divisions

      Ferry                                                                                                                         76,929,849

      Public Transportation, Bicycle and Pedestrian                                                        69,510,286

      Aviation                                                                                                                 156,474,429

      Rail                                                                                                                           45,299,938

Division of Motor Vehicles                                                                                         147,883,896

Other State Agencies, Reserves, Transfers                                                                    68,632,953

Capital Improvements                                                                                                   10,571,863

Total                                                                                                                       $3,338,300,000

Highway Fund Availability

SECTION 3.2.  The Highway Fund availability set out in Section 3.2 of S.L. 2023‑134 applies to the 2023‑2024 fiscal year only. The Highway Fund availability used in adjusting the 2024‑2025 budget is shown below:

Highway Fund Availability                                                                                    FY 2024‑2025

Beginning Balance                                                                                                                     $0

Overcollections from FY 2023‑24                                                                                 63,500,000

Consensus Revenue Forecast                                                                                                       

      Motor Fuels Tax                                                                                                 1,848,200,000

      Licenses and Fees                                                                                               1,077,700,000

      Short‑Term Lease                                                                                                  118,800,000

      Investment Income                                                                                                  52,400,000

      Sales Tax Transfer                                                                                                 177,700,000

Total Highway Fund Availability                                                                       $3,338,300,000

Highway Trust Fund Appropriations

SECTION 3.3.  Appropriations from the State Highway Trust Fund for the maintenance and operation of the Department of Transportation and for other purposes as enumerated are made for the fiscal year ending June 30, 2025, according to the following schedule. Amounts set out in parentheses are reductions from Highway Trust Fund Appropriations for the 2024‑2025 fiscal year.

Current Operations – Highway Trust Fund                                                        FY 2024‑2025

Program Administration                                                                                              $42,017,311

Bonds                                                                                                                           121,436,775

Turnpike Authority                                                                                                        49,000,000

State Ports Authority                                                                                                     45,000,000

FHWA State Match                                                                                                         6,176,440

Strategic Prioritization Funding Plan for

Transportation Investments                                                                                2,246,029,474

Transfer to Visitor Center                                                                                                   640,000

Total                                                                                                                       $2,510,300,000

HIGHWAY Trust FUND AVAILABILITY

SECTION 3.4.  The Highway Trust Fund availability set out in Section 3.2 of S.L. 2023‑134 applies to the 2023‑2024 fiscal year only. The Highway Trust Fund availability used in adjusting the 2024‑2025 budget is shown below:

Highway Trust Fund Availability                                                                          FY 2024‑2025

Beginning Balance                                                                                                                     $0

      Overcollections from FY 2023‑24                                                                           42,800,000

Consensus Revenue Forecast                                                                                                       

      Highway Use Tax                                                                                               1,131,400,000

      Motor Fuels Tax                                                                                                    613,900,000

      Fees                                                                                                                        169,000,000

      Investment Income                                                                                                  20,200,000

      Sales Tax Transfer                                                                                                 533,000,000

Total Highway Trust Fund Availability                                                             $2,510,300,000

PART IV. OTHER AVAILABILITY AND APPROPRIATIONS

Fund Transfer Changes

SECTION 4.1.(a)  Notwithstanding G.S. 18C‑164(b3), any net revenues remaining after appropriation pursuant to G.S. 18C‑164(b1) and transfer pursuant to G.S. 18C‑164(b2) are hereby transferred to the North Carolina State Education Assistance Authority (Budget Code 16012) to be used for the Opportunity Scholarship program for the 2024‑2025 fiscal year.

SECTION 4.1.(b)  Notwithstanding G.S. 143C‑4‑2(i), no transfer shall be made to the Unfunded Liability Solvency Reserve for the 2024‑2025 fiscal year.

SECTION 4.1.(c)  Notwithstanding G.S. 136‑44.2(f) and G.S. 136‑186, the credit reserve available in the Highway Fund and Highway Trust Fund shall be used in accordance with the appropriations made in this Act for the 2024‑25 fiscal year.

SECTION 4.1.(d)  This section becomes effective June 30, 2024.

Appropriation of Receipts increased due to salary and benefits increases

SECTION 4.1A.  Any receipts that are required to be used to pay the legislatively mandated salary increases and employee benefits increases provided in this act are appropriated up to the actual amount received for the 2024‑2025 fiscal year.

Education Lottery Funding Changes

SECTION 4.2.  Section 4.3(a) of S.L. 2023‑134 reads as rewritten:

SECTION 4.3.(a)  The allocations made from the Education Lottery Fund for the 2023‑2025 fiscal biennium are as follows:

FY 2023‑2024           FY 2024‑2025

Noninstructional Support Personnel                                         $385,914,455           $385,914,455 $406,914,455

Prekindergarten Program                                                              78,252,110               78,252,110

Public School Building Capital Fund                                         100,000,000             100,000,000

Needs‑Based Public School Capital Fund                                  254,252,612             258,252,612

Public School Repair & Renovation                                            50,000,000               50,000,000 100,000,000

Scholarship Reserve Fund for Public Colleges

and Universities                                                                      41,194,733               41,194,733

LEA Transportation                                                                      21,386,090               21,386,090

TOTAL ALLOCATION                                                        $931,000,000        $935,000,000 $1,006,000,000

Needs‑Based School Capital Program Changes

SECTION 4.3.(a)  Article 38B of Chapter 115C of the General Statutes reads as rewritten:

Article 38B.

Needs‑Based Public School Capital Fund.

§ 115C‑546.10.  Fund created; purpose; prioritization.

There is created the Needs‑Based Public School Capital Fund as an interest‑bearing, nonreverting special fund in the Department of Public Instruction. The State Treasurer shall be the custodian of the Needs‑Based Public School Capital Fund and shall invest its assets in accordance with the provisions of G.S. 147‑69.2 and G.S. 147‑69.3. The Department of Public Instruction shall award grants from the Fund to counties to assist with their critical public school building capital needs in accordance with the following priorities:

(1)        Counties designated as development tier one areas.

(2)        Counties with greater need and less ability to generate sales tax and property tax revenue.

(3)        Counties with a high debt‑to‑tax revenue ratio.

(4)        The extent to which a project will address critical deficiencies in adequately serving the current and future student population.

(5)        Projects with new construction or complete renovation of existing facilities.

(6)        Projects that will consolidate two or more schools into one new facility.

(7)        Counties that have not received a grant under this Article in the previous three years.

(8)        Whether the county has declined or forfeited a previous grant awarded under this Article.

(9)        Whether the county has submitted a certification of intent to provide funding necessary for project completion.

§ 115C‑546.11.  Matching requirement; use of funds; maximum awards; project review.project review; application time lines.

(a)        An eligible county awarded a grant under this Article shall provide local matching funds from county funds, other non‑State funds, or a combination of these sources for the grant as provided in this section. An eligible county is a county with an adjusted market value of taxable real property of less than forty billion dollars ($40,000,000,000). The adjusted market value of taxable property in a county is equal to the county's assessed taxable real property value, using the latest available data published by the Department of Revenue, divided by the county's sales assessment ratio determined under G.S. 105‑289(h). The amount of matching funds for a county awarded a grant shall be published annually by the Department of Public Instruction prior to any application period. The local match requirement applied to the project shall be based on the match requirement effective at the time of the grant award. The local match requirement is calculated as follows:

Adjusted Market Value of Taxable Real Property

            Over                                        Up to                                             Percentage Match

            $0                                            $2 billion                                                         0%

$2 billion                                 $10 billion                                                       5%

$10 billion                               $20 billion                                                       15%

$20 billion                               $30 billion                                                       25%

$30 billion                               $40 billion                                                       35%

(b)        Grant funds shall be used only for the construction of new school buildings and additions, repairs, and renovations. Grant funds shall not be used for real property acquisition or for capital improvements to administrative buildings. Grant funds shall be disbursed in a series of payments based on the progress of the project. To obtain a payment, the grantee shall submit a request for payment along with documentation of the expenditures for which the payment is requested and evidence that the matching requirement contained in subsection (a) of this section has been met. No portion of grant funds may be used to acquire a Leadership in Energy and Environmental Design (LEED) certification.

(c)        Maximum grant award amounts shall be determined as follows:

(1)        Up to forty‑two million dollars ($42,000,000) for an elementary school.

(2)        Up to fifty‑two million dollars ($52,000,000) for a middle school or a combination of an elementary and middle school.

(3)        Up to sixty‑two million dollars ($62,000,000) for a high school.

(d)       The Department of Public Instruction shall review projected enrollment to evaluate the reasonableness of a project's size and scope. A county may include in a grant application a minimum grant amount that would enable the project to proceed. A grant application that proposes to consolidate two or more schools by (i) making additions or renovations at one or more school facilities and (ii) closing one or more existing school facilities may be submitted and considered by the Department of Public Instruction as a single project. Each application for a grant under this Article shall be evaluated independent of other grant applications submitted. A county may not apply for projects that exceed an aggregate amount greater than the maximum grant award amounts listed in subsection (c) of this section in any single year. The Department of Public Instruction shall not award a grant to an applicant at less than the requested amount or less than the maximum grant amounts listed in subsection (c) of this section for the purpose of reserving the amount of grant funds available for other grant applications. If a county declines or otherwise forfeits a grant awarded under this section, the Department shall not award additional grants to that county for 24 months from the date the grant award was declined or forfeited.

(e)        No later than October 1 of each year, the Department of Public Instruction shall publish the application requirements, including the applicable county match requirements calculated pursuant to subsection (a) of this section, for grant awards under this Article to be considered for the following fiscal year. The Department of Public Instruction shall open the grant application period on January 1 of each year and shall accept grant applications meeting the criteria established under this Article from that date until March 15 of each year. During the grant application period, the Department of Public Instruction may work with applicants to supplement grant applications with any information needed to evaluate the grant application. Upon the closing of the grant application period on March 15 of each year, the Department shall evaluate all applications received during the grant application period and, no later than May 1 of each year, shall submit an unranked list of grant applications, to include a technical evaluation and a statement of comparison to the priorities listed in G.S. 115C‑546.10 for each application, that qualify under the conditions imposed by this Article to the chairs of the Senate Committee on Appropriations/Base Budget, the chairs of the House Appropriations Committee, and the Fiscal Research Division.

§ 115C‑546.12.  Grant agreement; requirements.

(a)        A county receiving grant funds pursuant to this Article shall enter into an agreement with the Department of Public Instruction detailing the use of grant funds. The agreement shall contain at least all of the following:

(1)        A requirement that the grantee seek planning assistance and plan review from the School Planning Section of the Department of Public Instruction.

(2)        A progress payment provision governing disbursements to the county for the duration of the school construction project based upon the construction progress and documentation satisfactory to the Department that the matching requirement in G.S. 115C‑546.11 has been met.

(3)        A provision requiring periodic reports to the Department of Public Instruction on the use of disbursed grant funds and the progress of the school construction project.

(4)        A requirement that matching funds paid by the county pursuant to G.S. 115C‑546.11 must be derived from non‑State and nonfederal funds.

(5)        A provision requiring repayment in full of awarded grant funds in the event the grant recipient declines the grant award or the grant is forfeited.

(b)        Project construction must be initiated within 24 months of the award of grant funds. The Superintendent of Public Instruction may grant a 12‑month extension under extraordinary circumstances.

(c)        A grant awarded under this section may be forfeited if any of the following occur:

(1)        Project construction is not initiated on time.

(2)        Project scope changes significantly from what was outlined in the grant agreement.

(3)        Any statement or information provided in the grant application is later determined to be materially false.

(4)        Local funding is subsequently decreased from the amount provided in the grant application.

(d)       For grant awards that, due to extraordinary circumstances, are forfeited or declined, the Department of Public Instruction may deduct reasonable administrative costs incurred by the grant recipient in connection with the project from grant funds disbursed to the grant recipient in the calculation of fund repayment. A grant recipient shall provide documentation satisfactory to the Department to support any administrative costs to be deducted.

§ 115C‑546.13.  Lease exception; requirements.

(a)        Notwithstanding any provision of this Article to the contrary, a county may utilize grant funds for a lease agreement if all of the following criteria are met:

(1)        Ownership of the subject property on which the leased school is constructed shall be retained by the county.

(2)        The lease agreement shall include a repairs and maintenance provision that requires the landlord to bear the entire expense of all repairs, maintenance, alterations, or improvements to the basic structure, fixtures, appurtenances, and grounds of the subject property for the term of the lease.

(3)        The lease agreement shall be for a term of at least 15 years and no more than 25 years.

(4)        In lieu of the progress payment requirement provided in G.S. 115C‑546.11(b), a county that has entered into a lease agreement shall provide a copy of the lease agreement to the Department of Public Instruction and shall be periodically reimbursed upon submission of documentation satisfactory to the Department that the matching requirement of this section has been met.

(b)        For the purposes of this section, the term lease agreement shall include any ancillary agreements or predevelopment agreements entered into in anticipation of or in accordance with a lease. A lease agreement entered into pursuant to this subsection shall be subject to the requirements of Article 8 of Chapter 159 of the General Statutes. In determining whether the lease agreement is necessary or expedient pursuant to G.S. 159‑151(a)(1) and G.S. 159‑151(b)(1), the Local Government Commission may consider any other relevant construction and financing methods available to the county.

§ 115C‑546.14.  Reporting.

(a)        On or before April 1 of each year, a grant recipient shall submit to the Department of Public Instruction an annual report for the preceding year that describes the progress of the project for which the grant was received. The grant recipient shall submit a final report to the Department of Public Instruction within three months of the completion of the project.

(b)        On or before May 1 of each year, the Department of Public Instruction shall submit a report to the chairs of the Senate Appropriations Committee on Education/Higher Education, the chairs of the House Appropriations Committee on Education, and the Fiscal Research Division. The report shall contain at least all of the following information for the fiscal year:

(1)        Number, description, and geographic distribution of projects awarded.project applications received.

(2)        Total cost of each project and amount supported by the Needs‑Based Public School Capital Fund.

(3)        Projections for local school administrative unit capital needs for the next 30 years based upon present conditions and estimated demographic changes.

(4)        Any legislative recommendations for improving the Needs‑Based Public School Capital Fund program.

SECTION 4.3.(b)  G.S. 115C‑546.10, as amended by subsection (a) of this section, reads as rewritten:

§ 115C‑546.10.  Fund created; purpose; prioritization.

There is created the Needs‑Based Public School Capital Fund as an interest‑bearing, nonreverting special fund in the Department of Public Instruction. The State Treasurer shall be the custodian of the Needs‑Based Public School Capital Fund and shall invest its assets in accordance with the provisions of G.S. 147‑69.2 and G.S. 147‑69.3. General Fund. The Department of Public Instruction shall award administer grants allocated by an act of the General Assembly from the Fund to counties to assist with their critical public school building capital needs in accordance with this Article. Grant awards will be considered in accordance with the following priorities:

(1)        Counties designated as development tier one areas.

(2)        Counties with greater need and less ability to generate sales tax and property tax revenue.

(3)        Counties with a high debt‑to‑tax revenue ratio.

(4)        The extent to which a project will address critical deficiencies in adequately serving the current and future student population.

(5)        Projects with new construction or complete renovation of existing facilities.

(6)        Projects that will consolidate two or more schools into one new facility.

(7)        Counties that have not received a grant under this Article in the previous three years.

(8)        Whether the county has declined or forfeited a previous grant awarded under this Article.

(9)        Whether the county has submitted a certification of intent to provide funding necessary for project completion.

SECTION 4.3.(c)  G.S. 115C‑546.11, as amended by subsection (a) of this section, reads as rewritten:

§ 115C‑546.11.  Matching requirement; use of funds; maximum awards; project review; application time lines.

…

(b)        Grant funds shall be used only for the construction of new school buildings and additions, repairs, and renovations. Grant funds shall not be used for real property acquisition or for capital improvements to administrative buildings. Grant funds shall be disbursed in a series of payments based on the progress of the project. To obtain a payment, the grantee shall submit a request for payment along with documentation of the expenditures for which the payment is requested and evidence that the matching requirement contained in subsection (a) of this section has been met. No portion of grant funds may be used to acquire a Leadership in Energy and Environmental Design (LEED) certification. Grant funds awarded under this section shall not revert but shall remain available until expended or until project completion.

…

(d)       The Department of Public Instruction shall review projected enrollment to evaluate the reasonableness of a project's size and scope. A county may include in a grant application a minimum grant amount that would enable the project to proceed. A grant application that proposes to consolidate two or more schools by (i) making additions or renovations at one or more school facilities and (ii) closing one or more existing school facilities may be submitted and considered by the Department of Public Instruction as a single project. Each application for a grant under this Article shall be evaluated independent of other grant applications submitted. A county may not apply for projects that exceed an aggregate amount greater than the maximum grant award amounts listed in subsection (c) of this section in any single year. The Department of Public Instruction shall not award a grant to an applicant at less than the requested amount or less than the maximum grant amounts listed in subsection (c) of this section for the purpose of reserving the amount of grant funds available for other grant applications. If a county declines or otherwise forfeits a grant awarded under this section, the Department shall not award additional grants to that county for 24 months from the date the grant award was declined or forfeited.

….

SECTION 4.3.(d)  Section 4.3(c) of S.L. 2023‑134 reads as rewritten:

SECTION 4.3.(c)  The Department of Public Instruction may award additional grant funds for new construction, up to the maximum amounts provided in subsection (a) of this section, to a county that received an award for new construction under G.S. 115C‑546.11(c) during the 2022‑2023 fiscal year, provided that the county has not yet begun construction on the project. A county seeking additional funding pursuant to this subsection shall request additional funds from the Department in an amount not exceeding twelve million dollars ($12,000,000) by June 30, 2024, and shall provide actual bids or other documentation of cost increases satisfactory to the Department based upon the original project scope outlined in the grant agreement to support the requested additional funding. The additional grant awards provided pursuant to this subsection shall be subject to the same local matching requirement applicable when the previous grant was awarded. The Department may amend any existing agreements entered into with grant recipients from the initial grant award to accommodate the increased grant funding provided in this subsection. The Department may award additional grant funds under this subsection outside of the regular application process and time line; provided, however, all additional grant funds shall be awarded no later than June 30, 2025.December 31, 2024.

SECTION 4.3.(e)  Subsections (b) and (c) of this section become effective January 1, 2025. The remainder of this section becomes effective July 1, 2024.

Indian Gaming Revenue Fund Appropriations

SECTION 4.4.  Section 4.4(a) of S.L. 2023‑134 reads as rewritten:

SECTION 4.4.(a)  Allocations are made from the Indian Gaming Education Revenue Fund for the fiscal biennium ending June 30, 2025, as follows:

FY 2023‑2024             FY 2024‑2025

Textbook and Digital Resources Allotment                               $10,000,000             $10,000,000

$0

Classroom Materials                                                                     11,000,000                 1,000,000

Instructional Materials Allotment                                                                0               19,000,000

Total Appropriation                                                                 $21,000,000             $11,000,000 $20,000,000

Civil Penalty and Forfeiture Fund

SECTION 4.5.  Section 4.5 of S.L. 2023‑134 reads as rewritten:

SECTION 4.5.  Allocations are made from the Civil Penalty and Forfeiture Fund for the fiscal biennium ending June 30, 2025, as follows:

                                                                                                  FY 2023‑2024          FY 2024‑2025

School Technology Fund                                                            $18,000,000             $18,000,000

Drivers Education                                                                         31,493,768               31,493,768

State Public School Fund                                                           226,041,640             166,041,640 176,041,640

Total Appropriation                                                               $275,535,408           $215,535,408 $225,535,408

SPORTS WAGERING CHANGES

SECTION 4.6.(a)  G.S. 18C‑901(13d) reads as rewritten:

(13d)  Professional sports team. – A team in this State that competes in the highest level of any of the following professional sports:

a.         Baseball.

b.         Men's Soccer.

c.         Basketball.

d.         Football.

e.         Ice Hockey.

f.          Women's Soccer.

g.         Bull Riding.

SECTION 4.6.(b)  G.S. 105‑113.128 reads as rewritten:

§ 105‑113.128.  Use of tax proceeds.

The Secretary shall distribute the taxes collected under this Article, less the allowance to the Department of Revenue and reimbursement to the Lottery Commission for administrative expenses, in accordance with this section. The Secretary may retain the cost of administering this Article, not to exceed five hundred thousand dollars ($500,000) a year, as reimbursement to the Department. The Lottery Commission shall, no later than 20 days after the end of the month, notify the Department of its unreimbursed expenses from administering the provisions of Article 9 of Chapter 18C of the General Statutes from the previous month. The Department shall reimburse the Lottery Commission from the tax revenues collected under this Article no later than the end of the month in which the Department was notified. The remainder of the net proceeds of the tax collected under this Article are to be credited in the following priority:

…

(4)        One Six million dollars ($1,000,000) ($6,000,000) annually to the North Carolina Youth Outdoor Engagement Commission for grants, in the discretion of the Commission, as follows:to be used for the following purposes:

a.         Grants not to exceed five thousand dollars ($5,000) per sporting team or group per county per year requesting grant assistance to travel to in‑State or out‑of‑state sporting events.

b.         Incentive grants not to exceed twenty‑five thousand dollars ($25,000) to attract State, regional, area, and national sporting events, tournaments, and programs for nonprofessional sporting participants in programs administered by city, county, and local school administrative units, or appropriate nonprofit organizations exempt from taxation under section 501(c)(3) of the Internal Revenue Code as determined by the North Carolina Youth Outdoor Engagement Commission.

c.         Five million dollars ($5,000,000) of the proceeds distributed annually under this subdivision shall be used to fund Go Outside Grants, which shall be split evenly between the following purposes:

1.         Educational field trips.

2.         Construction of outdoor educational structures.

(5)        Of the remaining proceeds, as follows:

a.         Twenty percent (20%) annually to be distributed equally among the institutions listed in this sub‑subdivision to support collegiate athletic departments, not to supplant general funding to that institution. The institutions are listed as follows:

1.         Appalachian State University.

2.         East Carolina University.

3.         Elizabeth City State University.

4.         Fayetteville State University.

5.         North Carolina Agricultural & Technical State University.

6.         North Carolina Central University.

7.         University of North Carolina at Asheville.

8.         University of North Carolina at Charlotte.

9.         University of North Carolina at Greensboro.

10.       University of North Carolina at Pembroke.

11.       University of North Carolina at Wilmington.

12.       Western Carolina University.

13.       Winston‑Salem State University.

a1.       Five percent (5%) to be distributed equally among the institutions listed in this sub‑subdivision to support collegiate athletic departments, not to supplant general funding to that institution. The institutions are listed as follows:

1.         Appalachian State University.

2.         East Carolina University.

3.         North Carolina Agricultural & Technical State University.

4.         North Carolina State University.

5.         University of North Carolina at Chapel Hill.

6.         University of North Carolina at Charlotte.

b.         Thirty percent (30%) annually Twenty‑five percent (25%) to the North Carolina Major Events, Games, and Attractions Fund established under G.S. 143B‑437.112.

c.         Fifty percent (50%) annually The remainder to the General Fund.

SECTION 4.6.(c)  Subsection (b) of this section becomes effective August 1, 2024, and applies to distributions made on or after that date. The remainder of this section is effective when it becomes law.

STATE FISCAL RECOVERY FUND REALLOCATIONS

SECTION 4.7.(a)  Notwithstanding any provision of law to the contrary, State Fiscal Recovery Funds appropriated in S.L. 2021‑180 are reduced as follows:

(1)        The appropriation to the Administrative Office of the Courts (Budget Code 12000) for Economic Assistance Funds provided on page E7, item 14 of the Committee Report described in Section 43.2 of S.L. 2021‑180 and further described in Section 16.23 of S.L. 2021‑180 is reduced by the sum of nine hundred sixty‑four thousand six hundred eighty dollars ($964,680).

(2)        The appropriation to the Department of Commerce (Budget Code 14602) for Motorsports provided on page D45, item 128 of the Committee Report described in Section 43.2 of S.L. 2021‑180 and further described in Section 11.14 of S.L. 2021‑180 is reduced by the sum of one hundred twenty‑five thousand three hundred thirty‑eight dollars ($125,338).

(3)        The appropriation to the Department of Health and Human Services (Budget Code 14445) for Premium Pay Bonuses provided on page C44, item 109 of the Committee Report described in Section 43.2 of S.L. 2021‑180 and further described in Section 39.21 of S.L. 2021‑180 is reduced by the sum of twelve million six hundred forty thousand eight hundred ninety‑four dollars ($12,640,894).

(4)        The appropriation to the Department of Health and Human Services (Budget Code 14460) for Temporary Funding Assistance for ICF/IIDs provided on page C72, item 173 of the Committee Report described in Section 43.2 of S.L. 2021‑180 and further described in Section 9F.13 of S.L. 2021‑180 is reduced by the sum of four thousand six hundred eighty‑six dollars ($4,686).

(5)        The appropriation to the Department of Public Instruction (Budget Code 13510) for Smart School Bus Pilot provided on page B28, item 71 of the Committee Report described in Section 43.2 of S.L. 2021‑180 and further described in Section 7.70(a) and (b) of S.L. 2021‑180 is reduced by the sum of three million three hundred twenty‑seven thousand five hundred eighty‑five dollars ($3,327,585).

(6)        The appropriation to the Department of Revenue (Budget Code 14700) for Mainframe Migration provided on page F154, item 274 of the Committee Report described in Section 43.2 of S.L. 2021‑180 is reduced by the sum of three hundred seventy‑two thousand two hundred thirty‑seven dollars ($372,237).

(7)        The appropriation to the Department of Revenue (Budget Code 14700) for Business Recovery Grant Program provided on page F154, item 275 of the Committee Report described in Section 43.2 of S.L. 2021‑180 and further described in Section 34.3A of S.L. 2021‑180 is reduced by the sum of two million nine hundred seventeen thousand one hundred forty‑three dollars ($2,917,143).

(8)        The appropriation to the Board of Governors of The University of North Carolina (Budget Code 10610) for North Carolina Arboretum COVID‑19 Expenses provided on page B45, item 132 of the Committee Report described in Section 43.2 of S.L. 2021‑180 is reduced by the sum of two thousand seven hundred forty‑seven dollars ($2,747).

(9)        The appropriation to the Board of Governors of The University of North Carolina (Budget Code 16012) for Longleaf Commitment Grants provided on page B50, item 157 of the Committee Report described in Section 43.2 of S.L. 2021‑180 and further described in Section 8A.5 of S.L. 2021‑180 is reduced by the sum of twelve million five hundred thousand dollars ($12,500,000).

(10)      The appropriation to the Department of Environmental Quality (Budget Code 14300) for water, wastewater, and stormwater infrastructure grants provided on page D57, items 147‑150 of the Committee Report described in Section 43.2 of S.L. 2021‑180 and further described in Sections 12.13 and 12.14 of S.L. 2021‑180 is reduced by the sum of eight hundred eighty‑seven million six hundred ten thousand four hundred forty‑eight dollars ($887,610,448).

SECTION 4.7.(b)  State agencies that are still in possession of the funds described in subsection (a) of this section shall return the funds to the State Fiscal Recovery Fund, established in Section 2.2 of S.L. 2021‑25, as soon as practicable but no later than 15 business days after this section becomes law.

SECTION 4.7.(c)  The Office of State Budget and Management shall allocate funds from the State Fiscal Recovery Fund, established in Section 2.2 of S.L. 2021‑25, in accordance with the provisions contained in Section 4.9 of S.L. 2021‑180, as follows:

(1)        The sum of nine hundred sixty‑four thousand six hundred eighty dollars ($964,680) to the Administrative Office of the Courts (Budget Code 12000) for Human Trafficking Grants.

(2)        The sum of ten million dollars ($10,000,000) to the Department of Public Safety (Budget Code 14550) for VIPER.

(3)        The sum of one hundred nine million five hundred one thousand seventy‑eight dollars ($109,501,078) to the Department of Health and Human Services (Budget Code 14420) for Childcare Stabilization Grants.

(4)        The sum of eight hundred million dollars ($800,000,000) to the SFRF Negative Reserve (Budget Code 19000).

SECTION 4.7.(d)  This section is effective when it becomes law.

Interest earned from state fiscal recovery reserve

SECTION 4.8.(a)  Section 4.8A of S.L. 2023‑134 is amended by adding a new subsection to read:

SECTION 4.8A.(c)  Allocations of interest earned from the State Fiscal Recovery Reserve set forth in this act, S.L. 2023‑134, or any other enactment of the General Assembly providing for such allocations shall not revert at the end of each year of the 2023‑2025 fiscal biennium but shall remain available until expended.

SECTION 4.8.(b)  This section becomes effective June 30, 2024.

MEDICAID REBASE FUNDING FOR FISCAL YEAR 2024‑2025 FROM ARPA TEMPORARY SAVINGS FUND

SECTION 4.9.  Section 4.9(d) of S.L. 2023‑134 is amended by adding a new subdivision to read:

(9a)    The Department of Health and Human Services, Division of Health Benefits, (Budget Code 14445) for Medicaid Rebase.

ARPA Temporary Savings Fund grant correction

SECTION 4.10.(a)  Notwithstanding Section 43.2 of this act or any other provision of law to the contrary, the funds appropriated from the ARPA Temporary Savings Fund for Justice Involved Populations in the sum of seventy million dollars ($70,000,000) in nonrecurring funds for the 2024-2025 fiscal year is reduced by three million dollars ($3,000,000).

SECTION 4.10.(b)  Notwithstanding Section 43.2 of this act or any other provision of law to the contrary, the sum of three million dollars ($3,000,000) in nonrecurring funds for the 2024-2025 fiscal year is appropriated from the ARPA Temporary Savings Fund to the Office of State Budget and Management to provide a directed grant to Boys Club of Wake County, Inc., a nonprofit, to provide funds to Boys and Girls Clubs across the State to implement programs that improve the motivation, performance, and self-esteem of youth and other initiatives that would be expected to reduce gang participation, school dropout, and teen pregnancy rates.

PART V. GENERAL PROVISIONS

Extend The Time Line for Certain Directed Grants to Non‑State Entities

SECTION 5.1.(a)  This section applies to any directed grants appropriated as nonrecurring funds in S.L. 2022‑74 for the 2022‑2023 fiscal year that (i) remain unexpended as of the effective date of this section and (ii) are subject to reversion at the end of the 2023‑2024 fiscal year. Notwithstanding any provision of law to the contrary, the grants described by this section shall not revert at the end of the 2023‑2024 fiscal year and shall remain available for expenditure for the purpose for which the funds were appropriated until the earlier of the date the funds are expended or the date the funds revert pursuant to subsection (b) of this section.

SECTION 5.1.(b)  Any funds described in subsection (a) of this section that remain unexpended as of June 30, 2024, shall revert to the appropriate fund at the end of the 2024‑2025 fiscal year.

SECTION 5.1.(c)  This section becomes effective June 30, 2024.

ESTABLISHING OR INCREASING FEES

SECTION 5.2.(a)  Notwithstanding G.S. 12‑3.1, an agency is not required to consult with the Joint Legislative Commission on Governmental Operations prior to establishing or increasing a fee to the level authorized or anticipated in this act.

SECTION 5.2.(b)  Notwithstanding G.S. 150B‑21.1A(a), an agency may adopt an emergency rule in accordance with G.S. 150B‑21.1A to establish or increase a fee as authorized by this act if the adoption of a rule would otherwise be required under Article 2A of Chapter 150B of the General Statutes.

DIRECTED GRANTS TO NON‑STATE ENTITIES

SECTION 5.3.(a)  Definitions. – For purposes of this act and the Committee Report described in Section 43.2 of this act, the following definitions apply:

(1)        Directed grant. – Nonrecurring funds allocated by a State agency to a non‑State entity as directed by an act of the General Assembly and specifically denoted as a directed grant.

(2)        Non‑State entity. – As defined in G.S. 143C‑1‑1.

SECTION 5.3.(b)  Requirements. – Nonrecurring funds appropriated in this act as directed grants are subject to all of the following requirements:

(1)        Directed grants are subject to the provisions of subsections (b) through (k) of G.S. 143C‑6‑23. For purposes of returning a directed grant pursuant to G.S. 143C‑6‑23(f1)(1), the date by which such funds must be expended, encumbered, or disbursed is the applicable deadline established for the directed grant.

(2)        Directed grants of one hundred thousand dollars ($100,000) or less may be made in a single annual payment in the discretion of the Director of the Budget. Directed grants of more than one hundred thousand dollars ($100,000) shall be made in quarterly or monthly payments in the discretion of the Director of the Budget. A State agency administering a directed grant shall begin disbursement of funds to a non‑State entity that meets all applicable requirements as soon as practicable but no later than 100 days after the date this act becomes law. Full disbursement of funds to a non‑State entity that meets all applicable requirements shall be completed no later than nine months after the date this act becomes law.

(3)        Beginning on the first day of a quarter following the deadline provided in subdivision (2) of this subsection and quarterly thereafter, State agencies administering directed grants shall report to the Fiscal Research Division on the status of funds disbursed for each directed grant until all funds are fully disbursed. At a minimum, the report required under this subdivision shall include updates on (i) the date of the initial contract, (ii) the date the contract was sent to the entity receiving the funds, (iii) the date the disbursing agency received the fully executed contract back from the entity, (iv) the contract execution date, and (v) the payment date.

(4)        Notwithstanding any provision of G.S. 143C‑1‑2(b) to the contrary, nonrecurring funds appropriated in this act for the 2024‑2025 fiscal year as directed grants shall not revert until June 30, 2026.

(5)        Directed grants to nonprofit organizations are for nonsectarian, nonreligious purposes only.

SECTION 5.3.(c)  Expiration. – This section expires on June 30, 2026.

Budget Act Changes

SECTION 5.4.(a)  G.S. 143C‑1‑1 reads as rewritten:

§ 143C‑1‑1.  Purpose and definitions.

…

(d)       Definitions. – The following definitions apply in this Chapter:

…

(20)      Object or line item. – An expenditure or receipt in a recommended or enacted budget that is designated in the Budget Code Structure of the North Carolina Accounting Financial System Uniform Chart of Accounts prescribed by the Office of the State Controller.

…

(23)      Purpose or program. – A group of objects or line items for support of a specific activity for a State agency outlined in a recommended or enacted budget that is designated by a nine‑digit six‑digit budget fund code in accordance with the Budget Code Structure of the North Carolina Accounting Financial System Uniform Chart of Accounts prescribed by the Office of the State Controller.

….

SECTION 5.4.(b)  G.S. 143C‑3‑5 reads as rewritten:

§ 143C‑3‑5.  Budget recommendations and budget message.

…

(b)        Odd‑Numbered Years. – In odd‑numbered years the budget recommendations shall include the following components:

…

(2)        A Recommended Base Budget showing, for each budget code and purpose or program in State government, accounting detail corresponding to the Recommended State Budget.

a.         The Recommended Base Budget shall employ the North Carolina Accounting Financial System Uniform Chart of Accounts adopted by the State Controller to show both uses and sources of funds and shall display in separate parallel columns all of the following: (i) actual expenditures and receipts for the most recent fiscal year for which actual information is available, (ii) the certified budget for the preceding fiscal year, (iii) the currently authorized budget for the preceding fiscal year, (iv) program base budget requirements for each fiscal year of the biennium, (v) proposed expenditures and receipts for each fiscal year of the biennium, and (vi) proposed increases and decreases.

…

c.         The Recommended Base Budget shall include accurate projections of receipts, expenditures, and fund balances. Estimated receipts, including tuition collected by university or community college institutions, shall be adjusted to reflect actual collections from the previous fiscal year, unless the Director recommends a change that will result in collections in the budget year that differ from prior year actuals, or the Director otherwise determines there is a more reasonable basis upon which to accurately project receipts. If receipts are projected to decrease, the corresponding expenditure shall be decreased in a like amount. Revenue and expenditure detail provided in the Budget Support Document shall be no less detailed than the two‑digit level in the North Carolina Accounting Financial System Uniform Chart of Accounts as prescribed by the State Controller.

…

(7)        The Governor's Recommended State Budget shall include a transfer to the State Capital and Infrastructure Fund of four percent (4%) of the estimated net State tax revenues that are deposited in the General Fund for each fiscal year of the upcoming biennium.in accordance with G.S. 143C‑4‑3.1(b)(1).

….

SECTION 5.4.(c)  G.S. 143C‑6‑13 is repealed.

SECTION 5.4.(d)  Section 5.3 of S.L. 2023‑134 reads as rewritten:

SECTION 5.3.(a)  Definitions. – For purposes of this act and the Committee Report described in Section 43.2 of this act, the following definitions apply:

(1)        Directed grant. – Nonrecurring funds allocated by a State agency to a non‑State entity as directed by an act of the General Assembly.

(2)        Non‑State entity. – As defined in G.S. 143C‑1‑1.

SECTION 5.3.(b)  Requirements. – Nonrecurring funds appropriated in this act as directed grants are subject to all of the following requirements:

(1)        Directed grants are subject to the provisions of subsections (b) through (k), except for subdivision (1) of (f1), (k) of G.S. 143C‑6‑23. For purposes of returning a directed grant pursuant to G.S. 143C‑6‑23(f1)(1), the date by which such funds must be expended, encumbered, or disbursed is the applicable deadline established for the directed grant.

….

SECTION 5.4.(e)  G.S. 143C‑6‑11(l) reads as rewritten:

(l)       It is the intent of the General Assembly to (i) prevent the inclusion of duplicative fund codes in the Highway Fund certified budget and (ii) correctly align authorized positions and associated operating costs with the appropriate purposes and definitions as defined in G.S. 143C‑1‑1. To that end, the Office of State Budget and Management, in consultation with the Department of Transportation, the Office of the State Controller, and the Fiscal Research Division of the General Assembly, shall include, as an appendix to the Highway Fund certified budget, object detail using the North Carolina Accounting Financial System Uniform Chart of Accounts prescribed by the Office of the State Controller to provide a more detailed accounting of the proposed budgets and receipts and actual expenditures and revenue collections. This requirement includes applying object detail at the four‑digit level for all accounts to full‑time and part‑time positions, to operating expenditures and receipts, and to intrafund transfers. Additionally, work order positions shall be budgeted within existing fund codes.

SECTION 5.4.(f)  Subsection (d) of this section becomes effective June 30, 2024. The remainder of this section becomes effective July 1, 2024.

Remove Raffle Restrictions on Nonprofit Organizations

SECTION 5.5.(a)  G.S. 14‑309.15 reads as rewritten:

§ 14‑309.15.  Raffles.

(a)        It is lawful for any nonprofit organization, candidate, political committee, or any government entity within the State, to conduct raffles in accordance with this section. Each regional or county chapter of a nonprofit organization is eligible to conduct raffles in accordance with this section independently of its parent organization. Any person who conducts a raffle in violation of any provision of this section is guilty of a Class 2 misdemeanor. Upon conviction that person shall not conduct a raffle for a period of one year. It is lawful to participate in a raffle conducted pursuant to this section. It is not a violation of State law to advertise a raffle conducted in accordance with this section. A raffle conducted pursuant to this section is not gambling. For the purpose of this section, candidate and political committee have the meaning provided by Article 22A of Chapter 163 of the General Statutes, who have filed organization reports under that Article, and who are in good standing with the appropriate board of elections. Receipts and expenditures of a raffle by a candidate or political committee shall be reported in accordance with Article 22A of Chapter 163 of the General Statutes, and ticket purchases are contributions within the meaning of that Article.

(b)        For purposes of this section raffle means a game in which the prize is won by random drawing of the name or number of one or more persons purchasing chances.

(c)        A nonprofit organization may hold no more than five raffles per year.

(d)       Except as provided in subsection (g) of this section, the The maximum cash prize that may be offered or paid for any one raffle is one hundred twenty‑five thousand dollars ($125,000) and if merchandise is used as a prize, and it is not redeemable for cash, the maximum fair market value of that prize may be one hundred twenty‑five thousand dollars ($125,000). The total cash prizes offered or paid by any nonprofit organization shall not exceed two hundred fifty thousand dollars ($250,000) in any calendar year. The total fair market value of all prizes offered by any nonprofit organization, either in cash or in merchandise that is not redeemable for cash, shall not exceed two hundred fifty thousand dollars ($250,000) in any calendar year.This subsection does not apply to a raffle conducted by a nonprofit organization.

(e)        Raffles shall not be conducted in conjunction with bingo.

(f)        As used in this subsection, net proceeds of a raffle means the receipts less the cost of prizes awarded. No less than ninety percent (90%) of the The net proceeds of a raffle shall be used by the nonprofit organization for charitable, religious, educational, civic, or other nonprofit purposes. None of the net proceeds of the raffle shall be used to pay any person to conduct the raffle, or to rent a building where the tickets are received or sold or the drawing is conducted.

(g)        Real property may be offered as a prize in a raffle. Any nonprofit organization offering real property as a prize in a raffle shall provide the property free from all liens, provide an owner affidavit and indemnity agreement, and provide a title commitment for the property and shall make that commitment available for inspection upon request. The total appraised value of all real estate prizes offered by any nonprofit organization shall not exceed two million two hundred fifty thousand dollars ($2,250,000) in any calendar year.

(h)        Notwithstanding any other subsection of this section, it is lawful for a federally insured depository institution to conduct a savings promotion raffle under G.S. 53C‑6‑20, 54‑109.64, 54B‑140, or 54C‑180.

SECTION 5.5.(b)  This section becomes effective December 1, 2024, and applies to offenses committed on or after that date.

freeze disaster of 2023 funding and agricultural crop loss program authorization

SECTION 5.6.(a)  Repeal of Funds Transfer. – Effective June 30, 2024, Section 5.6(a)(1)d. of S.L. 2023‑134 is repealed.

SECTION 5.6.(b)  Appropriation; Reversion. – The Department of Agriculture and Consumer Services (Department) shall use available funds in Budget Code 23702 for the agricultural disaster that occurred March 13, 2023 to April 25, 2023, and subject to Secretarial Disaster Designation S5468 by the United States Department of Agriculture Secretary Thomas J. Vilsack approved in this State caused by freezing temperatures and frost in Henderson, Polk, Rutherford, Buncombe, Haywood, and Transylvania counties. The use of those funds shall comply with the Agricultural Disaster Crop Loss Program, as enacted by this section. Any funds allocated to the Program in Budget Code 23702 not expended or encumbered by November 1, 2027, shall revert to the Disaster Relief and Mitigation Fund.

SECTION 5.6.(c)  Chapter 106 of the General Statutes is amended by adding a new Article to read:

Article 85B.

Agricultural Disaster Crop Loss Program.

§ 106‑1054.5.  Program established.

The Agricultural Disaster Crop Loss Program is established within and administered by the Department. The Program shall be used to provide financial assistance to persons affected by natural disasters designated as a secretarial disaster by the USDA in accordance with federal law or as the State deems necessary to provide financial assistance for agricultural disasters in this State. The Department may use up to three percent (3%) of funds allocated to the Program for each agricultural disaster for administrative purposes.

§ 106‑1054.6.  Definitions.

The following definitions apply in this Article:

(1)        Agricultural commodity. – Apples, barley, corn, cotton, dry peas, flax, forage, freezing and canning peas, grain sorghum, grapes, hay, industrial hemp, native grass, nursery crops, nuts, oats, peanuts, potatoes, rye, soybeans, sunflowers, sweet corn, tobacco, tomatoes, wheat, specialty crops and other fruits and vegetables, and aquacultural species propagated or reared in a controlled or selected environment. An agricultural commodity does not include stored grain.

(2)        Agricultural disaster. – A secretarial disaster designation declared by the USDA Secretary for qualifying counties in this State.

(3)        Department. – The Department of Agriculture and Consumer Services.

(4)        Farm infrastructure. – Fencing, greenhouses, barns, equipment, and farm roads or other structures or site improvements used for farming purposes.

(5)        Livestock. – Cattle, sheep, swine, goats, farmed cervids, and bison. Livestock shall include horses, mules, or other equines only if they are used for production of agricultural commodities.

(6)        Qualifying county. – A county in this State that is a primary county or contiguous county listed by the USDA for an agricultural disaster or a county in this State deemed qualifying by State law as affected by an agricultural disaster.

(7)        Person. – Any individual, trust, estate, partnership, receiver, association, company, limited liability company, corporation, or other entity or group.

(8)        Poultry. – Chickens, quail, or turkeys.

(9)        Program. – The Agricultural Disaster Crop Loss Program.

(10)      USDA. – The United States Department of Agriculture.

§ 106‑1054.7.  Eligibility and verification of loss of agricultural commodities.

(a)        Eligibility. – To be eligible for financial assistance under this Program, all of the following criteria must be satisfied:

(1)        The person experienced verifiable loss of agricultural commodities as a result of an agricultural disaster,

(2)        The person's farm is located in a qualifying county in this State,

(3)        An agricultural commodity was planted but not harvested on or before the date of the agricultural disaster or an aquaculture commodity was being propagated or reared in a controlled or selected environment on or before the date of the agricultural disaster.

(b)        Verification. – A person seeking financial assistance for losses of agricultural commodities under the Program shall submit to the Department a Form 578 on file with the USDA Farm Service Agency or a form provided by the Department for reporting acreage or plantings of crops or reporting infrastructure damage or loss that is not typically reported on Form 578, along with any other documentation deemed appropriate by the Department, during an application period set by the Department for each designated disaster. For nursery crops, fruit‑bearing trees and bushes, and specialty crops where the survival level is not immediately known, the Department may extend this deadline for up to six months, upon written request by the person, if approved by the Department. A person receiving assistance under this Program must provide a signed affidavit, under penalty of perjury, certifying that each fact of the loss presented by the person is accurate.

§ 106‑1054.8.  Eligibility and documentation for livestock or poultry financial assistance.

(a)        Eligibility. – To be eligible for financial assistance for losses of livestock or poultry, a person must first qualify for and receive payment through the USDA Livestock Indemnity Program and be a participant in a livestock or poultry indemnity program administered by the USDA Farm Service Agency.

(b)        Documentation. – A person seeking financial assistance for losses of livestock or poultry shall submit documentation of loss and indemnity received from the USDA Livestock Indemnity Program, along with any other documentation deemed appropriate by the Department, during an application period set by the Department. The Department may extend this deadline for up to six months, upon written request by the person, if approved by the Department. A person receiving assistance under this Program must provide a signed affidavit, under penalty of perjury, certifying that each fact of the loss presented by the person is accurate.

§ 106‑1054.9.  Criteria.

The Department shall administer the financial assistance program authorized by this section in accordance with the following criteria:

(1)        In determining the payment calculation for agricultural commodities, the Department shall use a formula based on acreage, county loss estimates, USDA National Agricultural Statistics Service averages, and any other measure the Department deems appropriate. Funds shall be distributed based on county averages for yields and State averages for price. Calculations shall be based on county or State averages in price, whichever the Department determines is appropriate.

(2)        The payment calculation for livestock and poultry shall be based on twelve and one‑half percent (12.5%) of the total loss reported to the USDA Livestock Indemnity Program.

(3)        The Department shall gather all claim information, and shall, as closely as possible, estimate the amount of the funds needed to be held in reserve for payments related to losses of livestock, poultry, nursery, bush, tree, and specialty crops for which losses will not be fully known or calculated. The Department shall set aside funds as it deems appropriate based on the estimated percentage of these losses.

(4)        Payments made under this Program shall be made to the person who filed the Form 578 or Department form for claims related to agricultural commodity losses or the person who received payment from the USDA Livestock Indemnity Program for claims related to livestock or poultry losses.

(5)        The Department shall develop a formula to determine the payment calculation for farm infrastructure damage or loss using measures the Department deems appropriate. The Department shall consider any other available insurance claims that may be available to the applicant when developing this formula.

§ 106.1054.10.  Audit.

The Department may audit the financial and other records of each recipient of funds in order to ensure that the funds are used in accordance with the requirements of this Program. The Department may require any documentation or proof it considers necessary to efficiently administer this Program, including the ownership structure of each entity and the social security numbers of each owner. In order to verify losses, the Department may require the submission of dated, signed, and continuous records. These records may include, but are not limited to, commercial receipts, settlement sheets, warehouse ledger sheets, pick records, load summaries, contemporaneous measurements, truck scale tickets, contemporaneous diaries, appraisals, ledgers of income, income statements of deposit slips, cash register tape, invoices for custom harvesting, u‑pick records, and insurance documents.

§ 106‑1054.11.  Expenditure of awarded funds; refund.

(a)        Awarded funds shall be used for agricultural production expenses and recovery of losses due to the impacts of an agricultural disaster. The Department shall develop guidelines and procedures to ensure that funds are expended for the purposes allowed by this section and may require any documentation it determines necessary to verify the appropriate use of financial assistance awards, including receipts. All distributed funds are subject to federal and State income tax.

(b)        If the Department determines that a person who received financial assistance provided inaccurate information, then the person shall refund the entire amount of the financial assistance. If the person does not refund the appropriate amount, the North Carolina Department of Revenue shall collect the money from the person pursuant to G.S. 105‑242.

§ 106‑1054.12.  Reporting requirement.

The Department shall submit a report to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division six months after the Program receives funds for an agricultural disaster and every six months thereafter until all funds are expended, containing, at a minimum, all of the following data:

(1)        The number of applicants by agricultural commodity, livestock, or poultry and the county in which the person incurred the verified loss.

(2)        The number and amount of grants awarded by agricultural commodity, livestock, or poultry.

(3)        The geographic distribution of the grants awarded.

(4)        The total amount of funding available to the Program, the total amount encumbered, and the total amount disbursed to date.

(5)        Any refunds made to the Program.

SECTION 5.6.(d)  Prior applications. – Prior applications under Section 5.9B of S.L. 2021‑180, as amended, for Tropical Storm Fred, and Section 4.4 of S.L. 2022‑6, as amended, for the freeze disaster of 2021, shall continue to be processed by the Department in accordance with those sections.

SECTION 5.6.(e)  Rulemaking. – The Department may adopt rules to implement the Agricultural Disaster Crop Loss Program as enacted by this section.

SECTION 5.6.(f)  Effective Date. – Subsection (c) of this section becomes effective July 1, 2024, and applies to applications received on or after that date.

PART VI. COMMUNITY COLLEGE SYSTEM

PERMIT NC CAREER COACH PROGRAM FUNDS TO BE USED FOR ADMINISTRATIVE COSTS

SECTION 6.1.  G.S. 115D‑21.5 reads as rewritten:

§ 115D‑21.5.  NC Career Coach Program.

(a)        Purpose. – There is established the NC Career Coach Program to place community college career coaches in high schools to assist students with determining career goals and identifying community college programs that would enable students to achieve these goals.

…

(e)        Administrative Costs. – Of the funds appropriated each fiscal year to the Community College System Office for the NC Career Coach Program, the System Office may allocate the lesser of up to two percent (2%) or one hundred fifteen thousand dollars ($115,000) for administrative costs associated with the program, including costs related to staffing, program management, and program evaluation.

PROPRIETARY SCHOOLS CHANGES

SECTION 6.2.(a)  G.S. 115D‑89.1(b) reads as rewritten:

(b)      The State Board of Proprietary Schools shall consist of seven members as follows:

(1)        The President of the North Carolina Community College System or the President's designee.

(2)        Two members appointed by the Governor.

(3)        Two members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, one of whom shall be the owner or director of a proprietary school licensed in the State with less than 100 total annual enrollment of students and one the owner or director of a proprietary school or group of proprietary schools licensed in the State with more than 750 100 or more total annual enrollment of students.

(4)        Two members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, one of whom shall be the owner or director of a proprietary school licensed in the State with between less than 100 and 750 total annual enrollment of students and one the owner or director of a proprietary school or group of proprietary schools licensed in the State.State with 100 or more total annual enrollment of students.

The appointing authorities shall appoint members who have a demonstrated history of experience in proprietary or public postsecondary education, an understanding of standards of quality in postsecondary education, and leadership beyond a particular institution.

SECTION 6.2.(b)  G.S. 115D‑90(b) reads as rewritten:

(b)      Application for a license shall be filed in the manner and upon the forms prescribed and furnished by the State Board of Proprietary Schools for that purpose. Such application shall be signed by the applicant and properly verified and shall contain such of the following information as may apply to the particular school for which a license is sought:

…

(7)        Such additional information as the State Board, acting by and through the State Board of Proprietary Schools, may deem necessary to enable it to determine the adequacy of the program of instruction and matters pertaining thereto. Each application shall be accompanied by a copy of the current bulletin or catalog of the school which shall be in published form and certified by an authorized official of the school as being current, true, and correct in content and policy. The school bulletin shall contain the following information:

…

i.          Policy and regulations of the institution relative to the refund of the unused portion of tuition, fees and other charges in the event the student does not enter the course or withdraws or is discontinued therefrom. The policy and regulations shall comply with federal law and provide for, at a minimum, a full refund if a student withdraws before the first day of class or the school cancels the class and a seventy‑five percent (75%) refund if the student withdraws within the first twenty‑five percent (25%) of the period of enrollment for which the student was charged.the following provisions to the extent those provisions are not inconsistent with federal law:

1.         If any of the following occur prior to the first day of class, a student shall receive a one hundred percent (100%) refund, including nonrefundable fees already paid:

I.          The student withdraws.

II.        The student is caused to withdraw by the school.

III.       The school cancels the class.

2.         If the student withdraws or is caused to withdraw by the school on or before completing twenty‑five percent (25%) of the period of enrollment for which the student was charged, the student shall receive a refund of seventy‑five percent (75%), excluding any disclosed nonrefundable fees.

….

SECTION 6.2.(c)  G.S. 115D‑95(b) reads as rewritten:

(b)      Amount. – An applicant for a license must file a bond with the North Carolina State Board of Community Colleges executed by the applicant as a principal and by a bonding company authorized to do business in this State. The bond must be payable to the State Board of Community Colleges, must be conditioned on fulfillment of the school's obligations, and must remain in effect until cancelled by the bonding company. The bonding company may cancel the bond upon 30 days' notice to the State Board of Community Colleges.

The application must set out calculations made by the applicant to determine the amount of bond required with the application. The required amount is determined as follows:

(1)        Initial licensure. – For an applicant for initial licensure of a school, the bond amount is the amount determined by the State Board that is adequate to provide indemnification to any student, or the student's parent or guardian who has suffered a loss of tuition, fees, or any other instructional‑related expenses paid to the school. A bond amount shall be at least twenty‑five thousand dollars ($25,000).

(2)        First four renewals. Renewal of licensure. – For a school that has been licensed for one year but less than six years, For an applicant for renewal of licensure of a school, the bond shall be in an amount equal to the greatest amount of unearned paid tuition in the school's possession at anytime any time during the prior fiscal year.

(2a)      Evaluations. – Bond amounts shall be evaluated as follows:

a.         The For a school that has been licensed for one year, but less than six years, the bond amount shall be evaluated by the school quarterly and reported to the State Board or its representative. For a school that has been licensed for six years or more, if the State Board deems an evaluation necessary, the State Board may require the bond amount to be evaluated by the school quarterly and reported to the State Board or its representative.

b.         A quarterly evaluation requiring an increase of five percent (5%) or more in the amount of the bond held by the school shall require an immediate increase in the bond amount.

c.         Bond amounts also shall be evaluated pursuant to this subdivision and the rules of the State Board of Community Colleges and State Board of Proprietary Schools at the time of the school's annual license renewal and increased if necessary regardless of the amount of the change.

(3)        Schools in operation more than five years. – A guaranty bond shall be required for license renewal for a school that has been continuously licensed to operate for more than five years in the State, as follows:

a.         If the balance of the Student Protection Fund in G.S. 115D‑95.1 is below the catastrophic loss amount, the school shall file a guaranty bond in an amount equal to the maximum amount of prepaid tuition held by the school during the prior fiscal year multiplied by the percentage amount the fund is deficient.

b.         If the school held prepaid tuition in excess of the Student Protection Fund catastrophic loss amount during the prior fiscal year, in addition to any bond amount required by sub‑subdivision a. of this subdivision, the school shall file a guaranty bond for the difference between the prepaid tuition amount held in the previous fiscal year and the Fund catastrophic loss amount.

SECTION 6.2.(d)  G.S. 115D‑95.1 reads as rewritten:

§ 115D‑95.1.  Student Protection Fund.

(a)        Definitions. – As used in this section:

(1)        Catastrophic loss amount means the amount of funds required to protect prepaid student tuition in case of a large‑scale event that would draw against the Student Protection Fund. The amount is one million dollars ($1,000,000).one million five hundred thousand dollars ($1,500,000).

(2)        Fund cap amount means the catastrophic loss amount plus a reserve amount. The amount is one million five hundred thousand dollars ($1,500,000).two million dollars ($2,000,000).

…

(f)        Suspension of Payments. – If the Student Protection Fund balance is equal to or exceeds the Fund cap amount, the State Board of Proprietary Schools shall suspend payments into the Fund for schools that have been continuously licensed in the State for more than eight years. The State Board of Proprietary Schools shall require schools to resume payments into the Fund if the balance of the Fund is less than the catastrophic loss amount.The State Board of Proprietary Schools shall suspend payments into the Fund, as follows:

(1)        For schools that are currently licensed in this State, if the Student Protection Fund balance is equal to or exceeds the catastrophic loss amount.

(2)        For schools applying for initial licensure with the State, if the Student Protection Fund balance is equal to or exceeds the fund cap amount.

(3)        If the Student Protection Fund balance decreases below the catastrophic loss amount, the State Board shall reinstate the requirement for schools to make payments into the Fund.

….

SECTION 6.2.(e)  Subsection (a) of this section applies beginning with appointments made on or after the date this act becomes law. Subsection (b) of this section becomes effective July 1, 2024, and applies to licenses issued on or after that date. Subsections (c) and (d) of this section become effective July 1, 2025, and apply to licenses issued on or after that date. Except as otherwise provided, this section becomes effective July 1, 2024.

DIRECT THE STATE BOARD OF COMMUNITY COLLEGES TO REVISE ITS FUNDING MODEL FOR COMMUNITY COLLEGES AND ESTABLISH ENROLLMENT INCREASE RESERVE

SECTION 6.3.(a)  The following session laws are repealed:

(1)        Subsection (b) of Section 8.3 of S.L. 2011‑145.

(2)        Subsection (a) of Section 10.4 of S.L. 2013‑360.

SECTION 6.3.(b)  The State Board of Community Colleges shall revise its funding formula for community colleges and allocate funds under that revised formula, beginning with the 2024‑2025 fiscal year, according to the following minimum criteria:

(1)        Each community college shall continue to receive a base allocation of funds.

(2)        In addition to the base allocation of funds, funds shall be provided to community colleges based on the number of full‑time equivalent (FTE) students enrolled in curriculum, workforce continuing education, and Basic Skills courses.

(3)        Community colleges shall calculate FTE enrollment as the higher of the current year's total enrollment or the average enrollment of the last two academic years.

(4)        Funds allocated pursuant to subdivision (2) of this subsection shall be weighted based on the workforce sector of each course, as determined by the State Board. In making its determinations, the State Board shall consider salary data and labor market demand for the applicable workforce sector.

SECTION 6.3.(c)  G.S. 115D‑5 is amended by adding a new subsection to read:

(aa)     The State Board of Community Colleges shall review and revise, as necessary, its workforce sector designations for curriculum, workforce continuing education, and Basic Skills courses at community colleges by January 15, 2027, and every two years thereafter.

SECTION 6.3.(d)  G.S. 115D‑31(e) reads as rewritten:

(e)      If receipts for community college tuition and fees exceed the amount certified in General Fund Codes at the end of a fiscal year, the State Board of Community Colleges shall transfer the amount of receipts and fees above those budgeted to the Enrollment Growth Reserve. may allocate those receipts to the community colleges for operating costs according to a formula adopted by the State Board. Funds in the Enrollment Growth Reserve allocated pursuant to this subsection shall not revert to the General Fund and shall remain available to the State Board until expended. The State Board may allocate funds in this reserve to colleges experiencing an enrollment increase greater than five percent (5%) of budgeted enrollment levels.

SECTION 6.3.(e)  G.S. 115D‑31 is amended by adding a new subsection to read:

(e1)    The State Board shall administer the Enrollment Increase Reserve as provided in G.S. 115D‑31.4.

SECTION 6.3.(f)  Article 3 of Chapter 115D of the General Statutes is amended by adding the following new section to read:

§ 115D‑31.4.  Enrollment Increase Reserve.

(a)        There is established the Enrollment Increase Reserve (Reserve) to be administered by the State Board of Community Colleges. The purpose of the Reserve is to allow the State Board to provide funds to community colleges to account for enrollment increases beyond budgeted enrollment levels.

(b)        Monies in the Reserve shall consist of funds appropriated by the General Assembly in the Current Operations Appropriations Act for a fiscal year. The State Board shall include in its annual enrollment request the appropriation to the Reserve that is needed to fund enrollment increases in the next fiscal year.

(c)        The State Board may allocate monies from the Reserve to a community college with an eligible increase in full‑time equivalent (FTE) enrollment according to a formula adopted by the State Board. An eligible increase in FTE enrollment is either of the following:

(1)        An increase in FTE enrollment of more than five percent (5%) of the budgeted enrollment level in any of the following course categories:

a.         Curriculum.

b.         Workforce continuing education.

c.         Basic Skills.

(2)        An increase in total FTE enrollment of more than 325 students.

(d)       Monies in the Reserve shall not revert at the end of each fiscal year but shall remain available until expended for the purposes of this section.

EXPAND CAREER AND COLLEGE READY GRADUATE PROGRAM

SECTION 6.4.  Section 10.13(a) of S.L. 2015‑241, as amended by Section 10.5 of S.L. 2016‑94 and Section 9.4 of S.L. 2018‑5, reads as rewritten:

SECTION 10.13.(a)  The State Board of Community Colleges, in consultation with the State Board of Education, shall develop a program for implementation beginning with model programs in the 2016‑2017 school year that introduces the college developmental mathematics and developmental reading and English curriculums in the high school senior year year, including the immediately preceding summer, and provides opportunities for college remediation for students prior to high school graduation through cooperation with community college partners. Professional development for high school faculty shall begin with the 2018‑2019 school year. The program shall be phased in by cohorts developed by the Department of Public Instruction beginning with the 2019‑2020 school year. The program shall be fully implemented in all high schools statewide beginning with the 2020‑2021 school year.

FUNDS FOR PREPARATION FOR EXPANSION OF IDD SERVICES IN NCCCS for high school students

SECTION 6.5.  Of the funds appropriated from the General Fund to the Community College System Office, the sum of two million dollars ($2,000,000) in nonrecurring funds for the 2024‑2025 fiscal year shall be used for a year of preparation and planning to implement a program at community colleges that serve students with intellectual and developmental disabilities (IDD) and to build capacity to provide services to students between the ages of 16 and 24 with IDD, including high school students. Funds appropriated pursuant to this section shall be used for the following purposes:

(1)        To develop or provide funding for programs that result in micro‑credentials and other credentials that lead to increased employment for students participating in the Career and College Promise Program.

(2)        To provide professional development for staff and faculty that focuses on developing and enhancing career pathways for students with IDD, with an emphasis on recruiting and retaining high school students with IDD.

(3)        To invest in student support services, including transportation, classroom modifications, and acquiring technology.

(4)        To review and revise policies and procedures to decrease barriers for high school students with IDD.

(5)        To hire short‑term subject matter experts to consult on transition services for students with IDD.

WORKFORCE DIPLOMA PROGRAM/GRADUATION ALLIANCE

SECTION 6.6.(a)  Program. – Of the nonrecurring funds appropriated in this act to the Community Colleges System Office for Graduation Alliance, the Community Colleges System Office shall contract with Graduation Alliance, Inc., to establish the Workforce Diploma Program (Program) to assist adults who are 21 years of age and older to obtain a high school diploma and develop employability and career and technical skills. Funds shall be provided to Graduation Alliance, Inc., based on the completion of milestones by each student served by the Program. The Program shall do at least the following:

(1)        Provide one or more courses that help students obtain a high school diploma and enter or advance within a specific occupation or occupational cluster. Course completion shall be competency‑based.

(2)        Assist students in obtaining employment, including resume development and mock interviews.

(3)        Include at least the following:

a.         Proactive communication with students regarding their pace and progress through learning plans.

b.         A plan for courses and credits needed for each student that integrates graduation requirements and career goals.

c.         Mentoring services.

d.         Milestone tracking.

e.         Academic skill intake assessments and transcript evaluations.

f.          A catalogue of courses necessary to meet graduation requirements.

g.         Remediation opportunities in literacy and numeracy.

h.         Employability skills certifications.

i.          Preparation for workforce credentials.

j.          Career advising services.

SECTION 6.6.(b)  Report. – The Community Colleges System Office, in consultation with Graduation Alliance, Inc., shall submit a report by August 15, 2025, to the Joint Legislative Education Oversight Committee and the Fiscal Research Division on the impact of the Program, including at least the following information:

(1)        The number of participants.

(2)        The number of credits earned by participants.

(3)        The number of employability skills certifications issued to participants.

(4)        The number and type of workforce credentials earned by participants.

(5)        The number of participants who received a high school diploma.

(6)        The average funding provided per participant who received a high school diploma, credit, employability skills certification, or workforce credential.

(7)        The percentage of participants who received a high school diploma, credit, employability skills certification, or workforce credential.

LEARNING MANAGEMENT SYSTEM GRANT PROGRAM AND STATEWIDE SOLICITATION

SECTION 6.7.(a)  Of the nonrecurring funds appropriated in this act to the Community Colleges System Office for the 2024‑2025 fiscal year for a learning management system grant program, the State Board of Community Colleges shall establish a grant program beginning in the 2024‑2025 fiscal year for a community college to receive funds to contract for an eligible learning management system for the college. These funds shall not revert at the end of the 2024‑2025 fiscal year but shall remain available until expended. For purposes of this subsection, an eligible learning management system is a learning management system that is being used in the 2024‑2025 school year by a majority of the students in the local school administrative unit or units in the service area of the community college. The State Board shall award grant funds to each community college of up to fifty percent (50%) of the cost incurred by the community college for the eligible learning management system.

SECTION 6.7.(b)  The State Board of Community Colleges shall conduct a competitive solicitation, including a request for information or a request for proposals, to provide a learning management system to all community colleges. The competitive solicitation shall be completed by April 1, 2025. Answers to the competitive solicitation shall include information on how the learning management system would align with the learning management systems (i) offered by the Department of Public Instruction to local school administrative units and (ii) used by the constituent institutions of The University of North Carolina.

SECTION 6.7.(c)  By May 1, 2025, the State Board shall report to the Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on Education/Higher Education, the House Appropriations Committee on Education, and the Fiscal Research Division on the information received pursuant to subsection (b) of this section.

PART VII. PUBLIC INSTRUCTION

Various Education Report Changes

SECTION 7.1.(a)  G.S. 115C‑12(25) is recodified as G.S. 115C‑21(a)(10) and reads as rewritten:

(10)    Duty to Report to Joint Legislative Education Oversight Committee. – Upon the request of the Joint Legislative Education Oversight Committee, the State Board Superintendent of Public Instruction shall examine and evaluate issues, programs, policies, and fiscal information, and shall make reports to that Committee. Furthermore, by November 15 March 15 of each year, the State Board Superintendent of Public Instruction shall submit reports to that Committee regarding schools identified as low‑performing, school improvement plans found to significantly improve student performance, personnel actions taken in low‑performing schools, and recommendations for additional legislation to improve student performance and increase local flexibility.

SECTION 7.1.(b)  Subdivision (4) of subsection (d) of G.S. 115C‑81.45 is repealed.

SECTION 7.1.(c)  Subsection (b) of Section 7.17 of S.L. 2018‑5 is repealed.

SECTION 7.1.(d)  Subsection (d) of Section 7.32 of S.L. 2017‑57 is repealed.

SECTION 7.1.(e)  G.S. 115C‑12(48) reads as rewritten:

(48)    Computer Science Reporting. – The State Board of Education shall report annually by November 15 March 15 to the Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on Education/Higher Education, and the House Appropriations Committee on Education on the following data related to computer science participation. For each item, the report shall include (i) statewide data for the current school year, and the four years prior when data is available, to establish trends in computer science instruction and (ii) data for the current school year for each public school unit, disaggregated by school within that unit:

….

SECTION 7.1.(f)  G.S. 115C‑316.2 is repealed.

SECTION 7.1.(g)  G.S. 115C‑316.5(a) reads as rewritten:

(a)      For the purposes of this section, the term school health personnel refers to the same positions listed in G.S. 115C‑316.2(a).school psychologists, school counselors, school nurses, and school social workers.

SECTION 7.1.(h)  G.S. 115C‑299.5 reads as rewritten:

§ 115C‑299.5.  Duty to monitor the state of the teaching profession.teacher attrition and mobility.

…

(b)        State of the Teaching Profession Teacher Attrition and Mobility Report. – The State Board of Education shall monitor and compile an annual report to be submitted by the Department of Public Instruction by December 15 February 15 annually on the state of the attrition and mobility of teachers in the teaching profession in North Carolina that includes data on the decisions of teachers to leave the teaching profession and vacancies in teaching positions as provided in subsections (c) and (e) of this section. The State Board shall adopt standard procedures for each local board of education to use in requesting information required by this report and shall require each local board of education to report the information to the State Board in a standard format adopted by the State Board.

SECTION 7.1.(i)  G.S. 115C‑12(22), as amended by S.L. 2023‑134, reads as rewritten:

(22)    Duty to Monitor the State of the Teaching Attrition and Mobility of Teachers and the State of the School Administration Professions Profession in North Carolina. – The State Board of Education shall monitor and compile an annual report on the state of the teaching attrition and mobility of teachers and the state of the school administration professions profession in North Carolina, as provided in G.S. 115C‑289.2 and G.S. 115C‑299.5.

SECTION 7.1.(j)  G.S. 115C‑289.2(d) reads as rewritten:

(d)      Report Consolidation. – The report required by this section shall be consolidated with the report on the State of the Teaching Profession Teacher Attrition and Mobility Report required by G.S. 115C‑299.5.

SECTION 7.1.(k)  G.S. 115C‑269.50 reads as rewritten:

§ 115C‑269.50.  EPP report cards.

The State Board shall create an annual report card for each EPP that, at a minimum, summarizes the information collected in the annual performance reports, as set forth in G.S. 115C‑269.35(b). The report cards shall provide user‑friendly access to the public, and shall provide the ability to easily compare annual report card information between EPPs, including performance and other data reported by each EPP, as provided in G.S. 115C‑269.35(b). The State Board shall make the report cards available to the public through the State Board's Internet Web site website on an annual basis beginning December 15, 2019, February 15, 2025, and the Department of Public Instruction shall submit the report to the Joint Legislative Education Oversight Committee annually by that date.

SECTION 7.1.(l)  Subsection (b) of Section 8.30 of S.L. 2015‑241 is repealed.

SECTION 7.1.(m)  Section 7.20(b) of S.L. 2021‑180 reads as rewritten:

SECTION 7.20.(b)  The Department shall report to the Senate Appropriations Committee on Education/Higher Education, the House Appropriations Committee on Education, the Fiscal Research Division, and the Joint Legislative Education Oversight Committee by March 15, 2022, September 15, 2024, and annually thereafter, on implementation of the platform, including integration of the technology with outside entities, such as educator preparation programs (EPPs) and businesses, and data on user outcomes, including at least the following:

(1)        The number of user accounts, visitors to the website, and web‑initiated chats.

(2)        The number of users who were seeking teacher licensure who applied to institutions with an EPP after visiting the TeachNC web platform and, of those users, the number of users who successfully enrolled into institutions with an EPP and who completed teacher licensure programs.

(3)        The number of users who applied for employment in public schools after visiting the TeachNC web platform and the number of teachers who continue to teach in the public schools after finding employment utilizing TeachNC.

The report submitted by March 15, 2022, shall also include any recommendations by the Department on potential cost‑sharing arrangements or public‑private partnerships with outside entities for ongoing sustainability or continued growth of the recruitment initiative.

SECTION 7.1.(n)  G.S. 115C‑450(d) reads as rewritten:

(d)      No later than May 15, 2022, and every six months thereafter, February 15 of each year, the Department of Public Instruction shall report all the following information to the Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on Education/Higher Education, the House Appropriations Committee on Education, and the Fiscal Research Division:

….

SECTION 7.1.(o)  G.S. 115C‑218.42(e) reads as rewritten:

(e)      Reporting. – No later than March August 15 of each year in which funds are awarded under the Program, the Department shall report to the Joint Legislative Education Oversight Committee, the Joint Legislative Transportation Oversight Committee, the Senate Appropriations/Base Budget Committee, the House Committee on Appropriations, and the Fiscal Research Division on the administration of the Program, including at least the following information:

….

SECTION 7.1.(p)  G.S. 115C‑218.110(b) reads as rewritten:

(b)      The State Board of Education shall review and evaluate the educational effectiveness of the charter schools authorized under this Article and the effect of charter schools on the public schools in the local school administrative unit in which the charter schools are located. The Board shall report annually no later than June August 15 to the Joint Legislative Education Oversight Committee on the following:

….

SECTION 7.1.(q)  G.S. 115C‑107.5 reads as rewritten:

§ 115C‑107.5.  Annual reports.

The State Board shall report send a copy of the annual report submitted as part of the State Performance Plan and Annual Performance Report that is submitted to the United States Department of Education and United States Office of Special Education Programs no later than October 15 of each year to the Joint Legislative Education Oversight Committee on the implementation of this Article and the educational performance of children with disabilities. The report may be filed electronically. Each annual report shall include the following information:

(1)        A copy of the following documents that were submitted, received, or made public during the year:

a.         The most recent State performance plan and any amendments to that plan submitted to the Secretary of Education.

b.         Compliance and monitoring reports submitted to the Secretary of Education.

c.         The annual report submitted to the Secretary of Education on the performance of the State under its performance plan.

d.         Any other information required under IDEA to be made available to the public.

(2)        An analysis of the educational performance of children with disabilities in the State and a summary of disputes under Part 1D of this Chapter.

(3)        Development and implementation of any policies related to improving outcomes for elementary and secondary school students with disabilities, including any changes related to the directives set forth in Section 8.30 of S.L. 2015‑241 as follows:

a.         Reforms related to IEP requirements.

b.         Transition services for students with disabilities from elementary to middle school, middle to high school, and high school to postsecondary education, and for employment opportunities and adult living options.

c.         Increased access to Future Ready Core Course of Study for students with disabilities.

d.         Model programs for use by local school administrative units to improve graduation rates and school performance of students with disabilities.

SECTION 7.1.(r)  G.S. 115C‑107.3 reads as rewritten:

§ 115C‑107.3.  Child find.

(a)        The Board shall require an annual census of all children with disabilities residing in the State, subdivided for identified and suspected children with disabilities, to be taken in each school year. Suspected children are those in the formal process of being evaluated or identified as children with disabilities. The census shall be conducted annually and shall be completed by October 15, submitted to the Governor and General Assembly and made available to the public by January 15 annually. The census submitted to the General Assembly may be a copy of any information or any report submitted to the federal government as part of compliance with the Individuals with Disabilities Education Act pursuant to 20 U.S.C. § 1418.

(b)        In taking the census, the Board requires the cooperation, participation, and assistance of all local educational agencies. Therefore, each local educational agency shall cooperate and participate with and assist the Board in conducting the census.

(c)        The census shall include the number of children identified and suspected with disabilities, their age, the nature of their disability, their county or city of residence, their local school administrative unit residence, whether they are being provided special educational or related services and if so by what local educational agency, the identity of each local educational agency having children with disabilities in its care, custody, management, jurisdiction, control, or programs, the number of children with disabilities being served by each local educational agency, and any other information or data that the Board requires. The census shall be of children with disabilities between the ages three through 21 but is not required to include children with disabilities that have graduated from high school.

NEW COOPERATIVE INNOVATIVE HIGH SCHOOLS

SECTION 7.2.(a)  Of the four hundred seventy‑five thousand dollars ($475,000) in recurring funds appropriated to the Department of Public Instruction in this act for the 2024‑2025 fiscal year for two new cooperative innovative high schools, the Department shall allocate supplemental funds for the following cooperative innovative high schools to their respective local school administrative units in amounts consistent with those set forth in G.S. 115C‑238.54A, as enacted by this section, beginning with the 2024‑2025 school year:

(1)        Dare Early College High School.

(2)        Rockingham County CTE Innovation High School.

SECTION 7.2.(b)  Beginning with the 2024‑2025 school year and for subsequent school years thereafter, notwithstanding G.S. 115C‑238.51A(c), G.S. 115C‑238.54, and any other provision of law to the contrary, Dare Early College High School and Rockingham County CTE Innovation High School shall be permitted to operate in accordance with G.S. 115C‑238.53 and G.S. 115C‑238.54 as cooperative innovative high schools approved under G.S. 115C‑238.51A(c) and shall be subject to the evaluation requirements of G.S. 115C‑238.55.

SECTION 7.2.(c)  Part 9 of Article 16 of Chapter 115C of the General Statutes is amended by adding a new section to read:

§ 115C‑238.54A.  Cooperative innovative high schools – supplemental allotment funding based on county development tier designation.

(a)        Allocation of Funding. – The Department shall allocate cooperative innovative high school supplemental allotment funds to local school administrative units with a cooperative innovative high school approved pursuant to G.S. 115C‑238.51A(c) based on developmental tier area, as defined in G.S. 143B‑437.08, as follows:

(1)        Local school administrative units located in a development tier one area shall be allocated funding as follows:

a.         The sum of two hundred seventy‑five thousand dollars ($275,000) in recurring funds for each cooperative innovative high school in the unit.

b.         For a virtual cooperative innovative high school, the sum of two hundred thousand dollars ($200,000) in recurring funds for each fiscal year.

c.         For the Northeast Regional School of Biotechnology and Agriscience, the Department shall allocate the sum of three hundred ten thousand dollars ($310,000) in recurring funds from the regional school supplemental allotment for the school for each fiscal year.

(2)        Local school administrative units located in a development tier two area shall be allocated the sum of two hundred thousand dollars ($200,000) in recurring funds for each cooperative innovative high school in the unit.

(3)        Local school administrative units located in a development tier three area shall be allocated the sum of one hundred eighty thousand dollars ($180,000) in recurring funds for each cooperative innovative high school in the unit.

(b)        Applicability of Funds. – The allotment of funds to local school administrative units pursuant to subsection (a) of this section shall include cooperative innovative high schools approved pursuant to G.S. 115C‑238.51A(c) operated by a local school administrative unit regardless of not receiving allotments in a prior fiscal year. Funds shall not be allocated to local school administrative units for cooperative innovative high schools approved by the State Board pursuant to G.S. 115C‑238.51A(b).

EXPAND AND MODIFY REPORT ON EXTRAORDINARY COSTS FOR STUDENTS WITH DISABILITIES

SECTION 7.3.  Section 7.49 of S.L. 2023‑134 reads as rewritten:

SECTION 7.49.  As used in this section, Approved School means a private school with approved nonpublic education programs providing special education for students with intensive needs. The Department of Public Instruction shall study the following and report any legislative recommendations based on the outcomes of the study to the House Appropriations Committee on Education, the Senate Appropriations Committee on Education/Higher Education, and the Joint Legislative Education Oversight Committee by January 15, 2024:January 15, 2025:

(1)        A method of improving options for children with disabilities with intensive needs which require private placement in an Approved School consistent with the student's individualized education program (IEP).

…

(11)      The creation of a grant program for local school administrative units to apply for funds to cover extraordinary costs of children with disabilities. The Department of Public Instruction shall consult with the Department of Health and Human Services, Division of Health Benefits, on opportunity for Medicaid reimbursement for services provided to students with disabilities in Approved Schools and the impact of Medicaid reimbursement on the cost of student placements in Approved Schools. Reported recommendations on this grant program shall include at least the following:

a.         Costs associated with placement in Approved Schools in accordance with a student's IEP.

b.         Potential sources of funding for the grant program.

c.         Methods of oversight to be used by the Department during administration of the grant program.

ADVANCED COURSEWORK AND AIG CHANGE

SECTION 7.4.(a)  G.S. 115C‑81.36 reads as rewritten:

§ 115C‑81.36.  Advanced courses in mathematics.mathematics and English Language Arts.

(a)        When practicable, local boards of education shall offer advanced learning opportunities in mathematics in grades three through five, and advanced courses in mathematics in all grades six and higher. For the purposes of this section, advanced learning opportunities are those services and curricular modifications in mathematics and English Language Arts for academically or intellectually gifted students approved as part of the local plan, as required by G.S. 115C‑150.7.G.S. 115C‑150.7, and advanced courses are advanced courses in mathematics and English Language Arts.

(a1)      When advanced learning opportunities are offered in mathematics in grades three through five, any student scoring at the highest level on the corresponding end‑of‑grade test shall, for the next school year, be provided advanced learning opportunities in mathematics approved for that student's grade level. No student who qualifies under this subsection shall be removed from the advanced learning opportunity provided to the student unless a parent or guardian of the student provides written consent for the student to be excluded or removed after being adequately informed that the student's placement was determined by the student's achievement on the previous end‑of‑grade test.

(b)        When advanced courses are offered in mathematics in grades six and higher, any student scoring at the highest level on the corresponding end‑of‑grade or end‑of‑course test for the mathematics course in which the student was most recently enrolled shall be enrolled in the advanced course for the next mathematics course in which the student is enrolled. A student in seventh grade scoring at the highest level on the seventh grade mathematics end‑of‑grade test shall be enrolled in a high school level mathematics course in eighth grade. Local boards of education may provide supplemental content enrichment, which may include the administration of diagnostic assessments, to students enrolled in a high school level mathematics course. No student who qualifies under this subsection shall be removed from the advanced or high school mathematics course in which the student is enrolled unless a parent or guardian of the student provides written consent for the student to be excluded or removed from that course after being adequately informed that the student's placement was determined by the student's achievement on the previous end‑of‑grade or end‑of‑course test.

(b1)      When a high school mathematics course is offered in eighth grade, a student in seventh grade scoring at the highest level on the seventh grade mathematics end‑of‑grade test shall be enrolled in a high school level mathematics course in eighth grade. Local boards of education may provide supplemental content enrichment, which may include the administration of diagnostic assessments, to students enrolled in a high school level mathematics course.

(c)        By December 15, 2020, December 15, 2025, and annually thereafter, the Department of Public Instruction shall submit a report to the Joint Legislative Education Oversight Committee containing data collected for the current school year on the number and demographics number, demographics, and socioeconomic status of students who were eligible for advanced mathematics courses under this section, including high school level mathematics courses in eighth grade, and of those students, the number and demographics number, demographics, and socioeconomic status of those who were placed in advanced mathematics courses and were not placed in advanced mathematics courses. The report shall include information on the type and format of advanced mathematics courses provided and shall also include any feedback provided by local boards of education on the implementation of this section.

(d)       The Department of Public Instruction shall provide guidance to local boards of education on how to best develop programming and courses to ensure all impacted students receive rigorous, academically appropriate instruction in mathematics.mathematics and English Language Arts. The Department shall create a standard form to be used to inform parents about the value of advanced courses and that students scoring at the highest level have demonstrated the ability to master the material to be taught in the advanced course.

(e)        No student who qualifies for advanced learning opportunities or advanced courses under this section shall be removed from the advanced learning opportunity or advanced course provided to the student unless a parent or guardian of the student provides written consent for the student to be excluded or removed after being adequately informed that the student's placement was determined by the student's achievement on the previous end‑of‑grade test. Local school administrative units may provide advanced learning opportunities or advanced courses to students who do not otherwise qualify under this subsection.

SECTION 7.4.(b)  No later than December 31, 2024, the Department of Public Instruction shall develop a uniform definition of advanced courses to be used in all public school units of the State and make this definition available to all public school units in the State. This definition shall apply, at a minimum, to advanced courses offered in accordance with G.S. 115C‑81.36 beginning with the 2025‑2026 school year.

SECTION 7.4.(c)  G.S. 115C‑270.30(b) is amended by adding a new subdivision to read:

(1a)    For all teachers, at least one‑half credit in advanced or accelerated learning with an emphasis on instructional strategies that enable teachers to cultivate and respond to students with advanced learning needs.

SECTION 7.4.(d)  G.S. 115C‑269.20(a)(1) is amended by adding a new sub‑subdivision to read:

a1.      Instruction of advanced or gifted students with an emphasis on instructional strategies that enable teachers to cultivate and respond to students with advanced learning needs.

SECTION 7.4.(e)  The State Board of Education shall adopt rules to comply with subsections (c) and (d) of this section prior to the start of the 2025‑2026 school year. The Board may adopt temporary rules to enact the provisions of this section until permanent rules are adopted.

SECTION 7.4.(f)  The Department of Public Instruction shall partner with Johns Hopkins University to study the effects of automatic enrollment in advanced courses on student outcomes. The study shall include up to 10 districts representing various regions of the State, various average daily membership allotments, various demographics, and various socioeconomic statuses. The study shall take place over the course of one academic year. The Department shall report the results of the study to the Joint Legislative Education Oversight Committee no later than December 1 following the completion of the study.

SECTION 7.4.(g)  This section is effective when it becomes law. Subsection (a) of this section applies beginning with the 2025‑2026 school year. Subsection (c) of this section applies beginning with teachers applying for license renewal in the 2028‑2029 school year. Subsection (d) of this section applies beginning with students entering an educator preparation program in the 2025‑2026 school year.

Provide Access to ASVAB in all schools

SECTION 7.5.(a)  Article 7B of Chapter 115C of the General Statutes is amended by adding a new Part to read:

Part 7. Military or Vocational Aptitude Test.

§ 115C‑76.80.  Armed Services Vocational Aptitude Battery.

(a)        Every public school unit shall provide students in grades 10 through 12 the opportunity to (i) take the Armed Services Vocational Aptitude Battery test (ASVAB) and (ii) consult with a military recruiter. Public school units shall not require students to take the ASVAB.

(b)        The ASVAB shall be administered during regular instructional hours at a time that limits conflicts with extracurricular activities.

(c)        Each public school unit shall provide each student in grades 10 through 12 and the student's parent a notice of the date, time, and location of the scheduled administration of the ASVAB at least 30 calendar days prior to the administration of the ASVAB.

SECTION 7.5.(b)  This section is effective when it becomes law and applies beginning with the 2024‑2025 school year.

Provide additional funds to CTE homebuilding

SECTION 7.6.  Section 7.19(a) of S.L. 2023‑134 reads as rewritten:

SECTION 7.19.(a)  Of the funds appropriated to the Department of Public Instruction in this act from the General Fund, the Department shall use up to two hundred seventy‑five thousand dollars ($200,000) ($275,000) in recurring funds to provide grants to assist public school units with program costs associated with CTE programs related to homebuilding. The Department of Public Instruction shall permit high schools within public school units to use the U.S. Department of Labor approved Pre‑Apprenticeship Certificate Training (PACT) program, developed by the Home Builders Institute as an approved curriculum for CTE programs. A public school unit or a regional partnership of more than one public school unit may apply to receive funds. When awarding grants under this subsection, the Department shall prioritize public school units (i) located, in whole or in part, in a county with at least one local school administrative unit that received low‑wealth supplemental funding in the previous fiscal year and (ii) that have a high population of at‑risk students or students with disabilities.

CYBERBULLYING MITIGATION, STUDENT MONITORING, AND SUICIDE PREVENTION PROGRAM

SECTION 7.7.(a)  Of the funds remaining from the two million one hundred thousand dollars ($2,100,000) allocated to the Department of Public Instruction pursuant to subdivision (3) of subsection (b) of Section 7.15 of S.L. 2023‑134 and the recurring funds appropriated by S.L. 2023‑134 to the Department of Public Instruction to contract with Liminex, Inc., d/b/a GoGuardian (GoGuardian), the Department shall use the funds to contract with GoGuardian for a pilot program for use of services and technology to mitigate cyberbullying, monitor student internet activity, and assist with suicide prevention services in one or more local school administrative units. The services and technology provided shall not be used to supplant similar services and technology previously paid for using local funds. Funds allocated pursuant to this section shall not be allocated on the basis of average daily membership.

SECTION 7.7.(b)  The Department shall report to the Joint Legislative Education Oversight Committee on the outcomes of local school administrative units participating in the pilot program established in subsection (a) of this section no later than September 15, 2025, and each year thereafter that funds are made available for this purpose. The report shall include at least the following:

(1)        The local school administrative units using the services and technology.

(2)        The number of students and teachers using the services and technology.

(3)        Aggregated and anonymized instances of cyberbullying identified by the services or technology and any steps taken by the local school administrative unit or school to remediate the instances.

(4)        Aggregated and anonymized instances of suicidal behavior identified by the services or technology and any steps taken by the local school administrative unit or school to remediate the instances.

Regulate Third‑Party contracts to provide photography or other services for parental purchase through schools

SECTION 7.8.(a)  Article 17 of Chapter 115C of the General Statutes is amended by adding a new Part to read:

Part 4. School‑Directed Contracts.

§ 115C‑266.  Regulation of school‑directed contracts.

(a)        Definitions. – The following definitions apply in this section:

(1)        Direct incentive. – A gift or other consideration given to an individual or school to influence the use of a specific vendor for a school‑directed contract. Direct incentives do not include articles of merchandise or food with a value of ten dollars ($10.00) or less per person, promotional materials, educational materials, or student identification cards.

(2)        Indirect incentive. – A return of a portion of the proceeds to a school administrator or school from the purchase price paid by the consumer to the vendor for goods or services under a school‑directed contract.

(3)        School‑directed contract. – A contract facilitated by a local board of education or school personnel that provides a vendor exclusive access to sell photography services, yearbooks, or other school‑related services to students and their parents or guardians.

(4)        School personnel. – School personnel as defined in G.S. 115C‑332.

(b)        No school, local board of education member, or school personnel shall receive a direct or indirect incentive from a school‑directed contract. A school employee that violates this section shall be subject to disciplinary action for failure to fulfill the responsibilities imposed by the General Statutes.

(c)        An individual that gives, offers, or promises a direct or indirect incentive to a school, local board of education member, or school personnel for the purpose of influencing a school‑directed contract is guilty of a Class 2 misdemeanor.

SECTION 7.8.(b)  This section is effective when it becomes law and applies beginning with school‑directed contracts entered into on or after July 1, 2024.

MOVE RENEWAL SCHOOL REVIEW DATES

SECTION 7.9.  Subsection (p) of Section 6 of S.L. 2018‑32 reads as rewritten:

SECTION 6.(p)  State Board of Education Review; Termination of Plan. – The State Board shall conduct a review of the operation and student performance of the local school administrative unit operating under an approved renewal school system plan following the end of the 2022‑2023 2028‑2029 school year and, at least every three five years thereafter, to ensure that the unit is meeting the expected academic, financial, and governance strategic goals set forth in the local board of education's plan. The State Board may terminate the renewal school system plan after a review upon any of the following grounds:

(1)        Failure to meet the requirements for student performance contained in the plan.

(2)        The majority of schools in the local school administrative unit have been identified as low‑performing schools in the two school years immediately preceding the review.

If the State Board determines that the local school administrative unit operating under an approved renewal school system plan has failed to meet generally accepted standards of fiscal management or violated State or federal law, the State Board may terminate the renewal school system plan prior to the end of 2022‑2023 the 2028‑2029 school year. In addition, if the State Superintendent finds that satisfactory progress is not being made after reviewing the reports required to be submitted under subsection (q) of this section, the State Superintendent shall recommend to the State Board that the renewal school system plan be terminated immediately. The State Board shall terminate the renewal school system plan if such a recommendation is made by the State Superintendent.

Upon termination of the renewal school system plan by the State Board, the State Board shall develop a transition plan for the local board of education to revert to operating the local school administrative unit in accordance with applicable State laws and regulations for other local school administrative units.

Change Low‑Wealth Allotment Formula

SECTION 7.10.(a)  G.S. 115C‑472.17(h), as enacted by Section 7.3 of S.L. 2023‑134, reads as rewritten:

(h)      Counties Containing a Base of the Armed Forces. – Notwithstanding any other provision of this section, counties containing a base of the Armed Forces of the United States that have an average daily membership of more than 17,000 students receiving Impact Aid for Federally Connected Children pursuant to 20 U.S.C. § 7703 shall receive whichever is the higher amount in each fiscal year as follows: either the amount of supplemental funding the county received as a low‑wealth county in the 2012‑2013 2023‑2024 fiscal year or the amount of supplemental funding the county is eligible to receive as a low‑wealth county pursuant to the formula for distribution of supplemental funding under the other provisions of this section.

SECTION 7.10.(b)  This section is effective when it becomes law and applies beginning with the 2024‑2025 school year.

Increase to Small County Supplement

SECTION 7.11.  G.S. 115C‑472.18(a) reads as rewritten:

(a)      Allotment Schedule. – Except as otherwise provided in subsection (c) of this section, each eligible county school administrative unit shall receive a dollar allotment according to the following schedule, on the basis of allotted ADM for the county school administrative unit, to the extent funds are made available for this purpose:

Allotted ADM                             Small County Allotment

0‑1,300                              $1,820,000$2,061,069

1,301‑1,700                              $1,774,700$2,015,769

1,701‑2,000                              $1,729,400$1,970,469

2,001‑2,300                              $1,684,100$1,925,169

2,301‑2,600                              $1,638,800$1,879,869

2,601‑2,800                              $1,593,500$1,834,569

2,801‑3,300                              $1,548,200$1,789,269

ALLOW INCREASING ENGAGEMENT IN STEM PROGRAM FUNDS TO CARRY FORWARD

SECTION 7.12.  Notwithstanding any provision of law to the contrary, any funds appropriated for STEM Grants for the Increasing Engagement in STEM Program established pursuant to Section 7.22 of S.L. 2023‑134 for the 2023‑2024 fiscal year shall not revert but shall remain available until the end of the 2024‑2025 fiscal year.

Career Development Plan Program Support

SECTION 7.13.(a)  Of the funds appropriated to the Department of Public Instruction from the General Fund for career development plan support, the Department shall use four hundred seventy‑five thousand dollars ($475,000) in recurring funds to contract with Year13, Inc., to ensure all students enrolled in local school administrative units are able to complete a career development plan in accordance with G.S. 115C‑158.10 during the fall semester of the 2024‑2025 school year. The contract shall ensure that Year13, Inc.'s, career development tool is available, at a minimum, each school year through the 2026‑2027 school year. Year13, Inc., shall focus implementation efforts on local school administrative units experiencing difficulties with implementing career development plans pursuant to G.S. 115C‑158.10.

SECTION 7.13.(b)  No later than December 15, 2024, and annually thereafter, the Department shall report to the Joint Legislative Education Oversight Committee, the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, and the Fiscal Research Division on the following:

(1)        For only the report due December 15, 2024, the process of integrating Year13, Inc.'s, student career planning tool with NCCareers.org and any difficulties or delays associated with the integration.

(2)        A list of all local school administrative units served by Year13, Inc.

(3)        Local school administrative units that received additional focus due to difficulties implementing career development plans.

(4)        Any other information the Department deems necessary.

MATH THAT COUNTS PILOT PROGRAM

SECTION 7.14.(a)  State Goal. – The goal of the State is to ensure that every student meets or exceeds expected mathematics learning by the end of fifth grade and continues to progress so that he or she can have the understanding and skills needed for secondary education and career success.

SECTION 7.14.(b)  Program Established; Purpose. – There is established the Math That Counts Pilot Program (Program). The Program shall begin with the 2024‑2025 school year and conclude at the end of the 2027‑2028 school year. The purposes of the Program are to ensure that (i) challenges with developing grade level mathematics proficiency are identified before students transition to sixth grade, (ii) students receive appropriate mathematics interventions to address mathematics challenges and accelerate learning, and (iii) each student and his or her parent or guardian be informed of the student's academic needs and progress.

SECTION 7.14.(c)  Participating local boards of education shall do the following as part of the Program:

(1)        Implement high‑quality mathematics instruction that meets the following criteria:

a.         Aligns with the North Carolina Standard Course of Study.

b.         Is evidence‑based.

c.         Engages students and provides them with relevant challenges and pathways to deeper understanding.

d.         Includes materials to support the teacher in facilitating and encouraging active student questioning and discussion.

e.         Provides students at all levels of language proficiency with opportunities to use written and oral forms of communication to learn and demonstrate understanding of mathematics skills.

(2)        Assess students in fourth and fifth grade at least three times per year in mathematics using the i‑Ready assessment platform.

(3)        Use the Zearn Math learning platform and services in elementary schools and middle schools located in their respective local school administrative units to address challenges with developing grade level mathematics proficiency.

(4)        For students who are not grade level proficient on mathematics standards by the end of fifth grade, as demonstrated by the end‑of‑grade assessment required by G.S. 115C‑174.11(c)(1), provide interventions and learning acceleration services documented in a Mathematics Success Plan (MSP) that meets the requirements of subsection (d) of this section.

(5)        By September 1 following any school year in which the local board of education participated in the Program, report to the Department of Public Instruction the following information on the prior school year:

a.         A description of mathematics interventions provided to students with MSPs.

b.         The student identification numbers of students with MSPs.

SECTION 7.14.(d)  The following shall apply to MSPs developed by participating local boards of education:

(1)        The MSP shall be created prior to the start of sixth grade and made available to the student's sixth grade teacher prior to the start of the school year. Students shall continue to receive an MSP through the end of eighth grade or when the student demonstrates grade level proficiency on the end‑of‑grade assessment, whichever is earlier.

(2)        The MSP shall be regularly adjusted based on multiple data sources, indicating that the student is not progressing toward grade level mathematics proficiency in one or more major mathematics standards. Based on the most recently collected data, an MSP shall include the following information, specific to the identified student:

a.         The specific mathematics standards for which the student is experiencing challenges in developing grade level mathematics proficiency as identified by the assessment data.

b.         Goals and benchmarks for growth.

c.         The means by which progress will be monitored and evaluated.

d.         The specific additional mathematics interventions the student will receive.

e.         Any additional services the teacher deems appropriate to accelerate the student's progress toward grade level mathematics proficiency.

(3)        A student's parent or guardian shall be given notice that the student has been identified as experiencing challenges with developing grade level mathematics proficiency and that an MSP has been developed. The notice shall provide the parent or guardian the following:

a.         Specific strategies that can be easily understood and implemented to assist the student in becoming grade level proficient on mathematics standards.

b.         Encouragement to select one or more strategies for use at home that build on the student's interests and are most likely to engage the student and result in progress toward grade level mathematics proficiency.

c.         Direction to free online or hard copy mathematics resources and tools that can be accessed via a prominently displayed area on the homepage of the primary website maintained by the Department of Public Instruction.

(4)        A multitiered system of support intervention may be used to satisfy the requirements of this section if all of the components of subdivision (2) of this subsection are incorporated in the intervention.

(5)        The Department shall develop the following model documentation of compliance with the requirements of this section:

a.         An MSP checklist.

b.         An alternative document for use with a multitiered system of support intervention.

SECTION 7.14.(e)  EVAAS Data Analysis. – When practicable, the Department of Public Instruction shall make available all formative and diagnostic assessment data collected pursuant to subdivision (2) of subsection (c) of this section for fourth and fifth grade students for EVAAS analysis. The Department shall use a uniform template for all data collected, and the template shall be used each time data is provided. The template shall include clear designations for each data component reported.

SECTION 7.14.(f)  Evaluation. – The Office of Learning Research, as established by Section 8.7 of this act, shall evaluate the effectiveness of the Program. The Office of Learning Research shall compare the outcomes of the Program to the outcome of the Carnegie PRISM teacher‑focused program as part of the evaluation.

SECTION 7.14.(g)  Report. – Beginning December 15, 2025, and ending December 15, 2028, the Department of Public Instruction shall report annually to the Joint Legislative Education Oversight Committee on the following information for participating local boards of education during the prior school year:

(1)        The number and percentage of fourth grade students demonstrating and not demonstrating grade level mathematics proficiency on the end‑of‑grade mathematics assessment.

(2)        The number and percentage of fifth grade students demonstrating and not demonstrating grade level mathematics proficiency on the end‑of‑grade mathematics assessment.

(3)        For students who received an MSP pursuant to subdivision (4) of subsection (d) of this section:

a.         A description of mathematics interventions provided to students.

b.         The number and percentage of sixth grade students demonstrating and not demonstrating grade level mathematics proficiency on the end‑of‑grade mathematics assessment.

c.         The number and percentage of seventh grade students demonstrating and not demonstrating grade level mathematics proficiency on the end‑of‑grade mathematics assessment.

d.         The number and percentage of eighth grade students demonstrating and not demonstrating grade level mathematics proficiency on the end‑of‑grade mathematics assessment.

SECTION 7.14.(h)  Grant Funds. – The Golden LEAF Foundation shall provide grants totaling seven million nine hundred thousand dollars ($7,900,000) to participating local boards of education identified by the Superintendent of Public Instruction pursuant to subsections (i) through (l) of this section to contract with Zearn for use of the Zearn Math learning platform and intensive support. The Golden LEAF Foundation shall allocate at least twenty thousand dollars ($20,000) for each elementary and middle school in a participating local school administrative unit.

SECTION 7.14.(i)  Cohort 1. – For the 2024‑2025 through the 2027‑2028 school years, the Superintendent of Public Instruction shall offer local boards of education of the following local school administrative units the opportunity to participate in the Program:

(1)        Columbus County Schools.

(2)        Lenoir County Public Schools.

(3)        Nash County Public Schools.

(4)        Rockingham County Schools.

(5)        Wayne County Public Schools.

(6)        Whiteville City Schools.

SECTION 7.14.(j)  Cohort 2. – For the 2025‑2026 through the 2027‑2028 school years, the Superintendent of Public Instruction shall offer local boards of education of the following local school administrative units the opportunity to participate in the Program:

(1)        Duplin County Schools.

(2)        Graham County Schools.

(3)        Halifax County Schools.

(4)        Martin County Schools.

(5)        Roanoke Rapids Graded School District.

(6)        Weldon City Schools.

SECTION 7.14.(k)  Cohort 3. – For the 2026‑2027 through the 2027‑2028 school years, the Superintendent of Public Instruction shall offer local boards of education of the following local school administrative units the opportunity to participate in the Program:

(1)        Beaufort County Schools.

(2)        Bertie County Schools.

(3)        Bladen County Schools.

(4)        Caswell County Schools.

(5)        Edgecombe County Public Schools.

(6)        Greene County Schools.

(7)        Mitchell County Schools.

(8)        Northampton County Schools.

(9)        Washington County Schools.

SECTION 7.14.(l)  Right of Refusal. – A local board of education offered participation in the Program may decline to participate in the Program. If a local board of education declines to participate in the Program, the Superintendent of Public Instruction may offer another local board of education the opportunity to participate in the same cohort of the Program, provided the local board of education meets the following criteria:

(1)        Is located in a development tier one area as of the effective date of this section.

(2)        Is below proficiency in math.

SECTION 7.14.(m)  Purchase of Diagnostic Assessments. – Of the funds appropriated from the General Fund to the Department of Public Instruction, the sum of nine hundred thousand dollars ($900,000) in recurring funds for the 2024‑2025 fiscal year shall be distributed to local school administrative units participating in the Program on the basis of average daily membership in grades four and five. Local school administrative units participating in the Program shall use these funds to purchase the diagnostic assessments required pursuant to subdivision (2) of subsection (c) of this section. If the funds appropriated for this purpose are not sufficient to purchase all of the necessary diagnostic assessments, the Department may allocate additional funds from the State Public School Fund to meet any additional requirements. At the conclusion of the Program, when developing the base budget, as defined in G.S. 143C‑1‑1, for the 2027‑2029 fiscal biennium, and subsequent fiscal biennia, the Director of the Budget shall not include these funds beginning in the 2028‑2029 fiscal year.

SECTION 7.14.(n)  Effective Date. – This section is effective when it becomes law and applies beginning with the 2024‑2025 school year.

ALLOW SCHOOL BOARDS TO USE EMINENT DOMAIN FOR EASEMENTS

SECTION 7.15.  G.S. 115C‑517 reads as rewritten:

§ 115C‑517.  Acquisition of sites.

Local boards of education may acquire suitable sites for schoolhouses or other school facilities either within or without the local school administrative unit; but no school may be operated by a local school administrative unit outside its own boundaries, although other school facilities such as repair shops, may be operated outside the boundaries of the local school administrative unit. Whenever any such board local board of education is unable to acquire or enlarge a suitable site or right‑of‑way site, right‑of‑way, or easement, including utility easements necessary to support school facilities situated on a site, for a school, school building, school bus garage or for a parking area or access road suitable for school buses buses, or for other school facilities by gift or purchase, condemnation proceedings to acquire same the site, right‑of‑way, or easement may be instituted by such board the local board of education under the provisions of Chapter 40A of the General Statutes, and the determination of the local board of education of the land necessary for such these purposes shall be conclusive. For purposes of this section, utility easements include easements for water, sanitary sewer, electric power, broadband, and telecommunications services.

EXPAND CTE SUPPORT IN MIDDLE SCHOOLS

SECTION 7.16.  Part 1A of Article 10 of Chapter 115C of the General Statutes is amended by adding a new section to read:

§ 115C‑158.15.  Career development plan support.

The Department of Public Instruction shall allocate to each local school administrative unit the dollar equivalent of one full‑time CTE coordinator position to be used to provide information and support to students in grades six and seven prior to the creation of a career development plan. Local boards of education are encouraged to hire full‑time, permanent CTE coordinators with these funds, but the funds may be used for other methods of support if the local board of education determines that adequate information and support is being provided without hiring a full‑time, permanent CTE coordinator.

PROGRAM TO ALLOW FINANCIAL AND HIRING FLEXIBILITY PLANs for certain school districts

SECTION 7.17.(a)  Authorize Financial and Hiring Flexibility Plan; Purpose. – Prior to the 2025‑2026 school year, an eligible district (District) may submit a Financial and Hiring Flexibility Plan (FHFP) to the State Board of Education (State Board) to permit the local board of education (local board) to decide certain matters related to the operation of the schools under the local board's control within the District, including the use of State funds, as provided in this section. The purpose of operating a District under a FHFP shall be for the local board to design and create a comprehensive, innovative, strategic vision allowing additional flexibility to the District to provide a high‑quality education to all students.

SECTION 7.17.(b)  Definitions. – For purposes of this section, eligible district means a local school administrative unit that meets both of the following criteria:

(1)        The local school administrative unit has the authority to levy and lay special taxes for the payment of bonds issued by the governing body of the unit.

(2)        The local school administrative unit had an allotted average daily membership of at least 5,000 for the 2023‑2024 school year.

SECTION 7.17.(c)  Submission of a FHFP. – A local board desiring to operate under a FHFP shall submit a FHFP that meets the requirements of this section to the State Board by January 15, 2025, to begin operation of the plan with the 2025‑2026 school year. The local board shall include at least the following components in its FHFP:

(1)        A resolution adopted by the local board to implement the FHFP in the District.

(2)        A detailed description of how the flexibility allowed under the FHFP will aid the District in meeting each of the following goals by the conclusion of the 2029‑2030 school year:

a.         Ensure that one hundred percent (100%) of all students have completed a career development plan by the beginning of their senior year of high school.

b.         Increase teacher retention to a ninety percent (90%) retention rate.

c.         Improve the average growth index of District schools to 0.50 or greater.

d.         Increase the growth rate of any subgroups of students below the average growth rate in the 2023‑2024 school year to above the average overall growth rate for the State.

e.         Quantify all other measures of success of the FHFP in achieving the goals established in the FHFP.

SECTION 7.17.(d)  State Board Approval. – The State Board shall approve a FHFP that meets the requirements of this section by March 15, 2025, to begin implementation July 1, 2025.

SECTION 7.17.(e)  State Board of Education Review; Termination of Plan. – The State Board shall conduct a review of the operation and student performance of a District operating under an approved FHFP following the end of the 2029‑2030 school year, and at least every three years thereafter, to ensure that the District is meeting the expected academic goals set forth in the FHFP and complying with all financial and observance requirements in this section. The State Board shall terminate a FHFP after a review for any of the following grounds:

(1)        Failure to meet the academic strategic goals for student performance contained in the plan.

(2)        Identification of the majority of schools in the District as low‑performing schools in the two school years immediately preceding the review.

(3)        Failure to meet generally accepted standards of fiscal management or violation of State or federal law.

SECTION 7.17.(f)  Early Termination. – If the State Board determines that a District operating under an approved FHFP has failed to meet generally accepted standards of fiscal management or violated State or federal law at any time, the State Board shall terminate the FHFP. In addition, if the Superintendent of Public Instruction (Superintendent) finds that satisfactory progress is not being made toward the strategic goals identified in a FHFP after reviewing the reports required to be submitted under subsection (n) of this section, the Superintendent shall recommend to the State Board that the FHFP be terminated. The State Board may terminate a FHFP if such a recommendation is made by the Superintendent. If a FHFP is terminated, the District shall continue to operate under the FHFP until the end of the school year in which the termination determination is made.

SECTION 7.17.(g)  Transition. – If a FHFP is terminated, notwithstanding G.S. 115C‑105.26, the State Board may grant the District a waiver to the licensure requirements of G.S. 115C‑295, annually, for up to three years, to facilitate the transition to employment of fully licensed teachers.

SECTION 7.17.(h)  Teachers. – Notwithstanding G.S. 115C‑295, beginning July 1, 2025, for as long as a District is operating under a FHFP, up to fifty percent (50%) of the teachers in each school in the District may be employed as teachers despite not holding teacher licenses if they meet the requirements set out in subsection (i) of this section. All teachers who are teaching in the core subject areas of mathematics, science, social studies, and language arts shall be college graduates.

SECTION 7.17.(i)  Requirements for Unlicensed Teachers. – All teachers hired by a local board operating under a FHFP who are not licensed as a teacher by the State shall complete preservice training, which may be offered through an educator preparation program or by a local school administrative unit, in all of the following areas prior to beginning instruction:

(1)        The identification and education of children with disabilities.

(2)        Positive management of student behavior.

(3)        Effective communication for defusing and de‑escalating disruptive or dangerous behavior.

(4)        Safe and appropriate use of seclusion and restraint.

SECTION 7.17.(j)  School Operation. – All schools in a District operating under a FHFP shall be deemed to have been continuously operating under a modified calendar since the 2003‑2004 school year for purposes of G.S. 115C‑84.2(d).

SECTION 7.17.(k)  Available State Funds. – Beginning with the 2025‑2026 fiscal year, the Department of Public Instruction shall calculate the amount of State funds to be allocated to a District operating under a FHFP on the same basis as other local school administrative units and shall distribute those funds to the unit. The Department shall use statewide average salary figures for the purpose of calculating the dollar equivalent of guaranteed positions as necessary. The funds allocated to a District shall be subject to any restrictions as to use imposed by federal law, the conditions of federal or State grants, or as provided through any rules that the State Board adopts to ensure compliance with federal regulations. Notwithstanding G.S. 115C‑105.25, use of these funds shall otherwise be unrestricted except as provided in this section.

SECTION 7.17.(l)  Provision for Disbursement of State Money. – The deposit of money in the State treasury to the credit of a District operating under an approved FHFP shall be made as necessary for the operation of the District. The State Board may withhold money to be distributed to a District if any report required to be filed with State school authorities is more than 30 days overdue. Money in the State Public School Fund and State bond moneys shall be released only on warrants drawn on the State Treasurer, signed by a local official as required by the State Board.

SECTION 7.17.(m)  Withholding for Retirement Contributions. – Upon notification by the Board of Trustees of the Teachers' and State Employees' Retirement System to the State Treasurer and the Office of State Budget and Management as to any default of a District operating under an approved FHFP, the State Board shall withhold from any State appropriation due to the District an amount equal to the sum of all delinquent contributions and payments due to the Retirement Systems Division and shall transmit that amount to the Retirement Systems Division.

SECTION 7.17.(n)  Reporting to Superintendent. – A District operating under an approved FHFP shall report to the Superintendent no later than July 15, 2026, and each year thereafter as follows:

(1)        An annual report on the number of licensed and unlicensed teachers and use of long‑term substitutes in filling vacancies for classroom teachers. This report shall also provide recruiting data on the number of licensed and unlicensed teachers hired during the school year and overall employee retention in each school year. In addition, the report shall also provide comparisons with the data from the previous school year on the information required by this subdivision at the local school administrative unit level.

(2)        Specific actions taken to close academic gaps between student groups on State assessments.

(3)        A breakdown of how State funds are being spent in the District.