H263: 2024 Appropriations Act. Latest Version

Session: 2023 - 2024

House
Passed 1st Reading
Rules
Committee
Passed 3rd Reading
Senate
Passed 1st Reading
Rules


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 Appropriations from the General Fund for the 2024‑2025 fiscal year set out in Section 2.1(a) of S.L. 2023‑134 are repealed.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.



(4)        Any available data on outcomes identified as goals in the FHFP.



(5)        Any other reporting requirements deemed necessary by the Superintendent of Public Instruction.



SECTION 7.17.(o)  Report to the General Assembly. – No later than November 15, 2026, and each year thereafter that a District operates under a FHFP, the Superintendent shall report to the Joint Legislative Education Oversight Committee on the progress of the FHFP on at least the following topics:



(1)        A summary of the data provided by Districts operating under a FHFP to the Superintendent in the annual report.



(2)        The effectiveness of the FHFP on hiring and retaining teachers in Districts, determined by annual turnover rates and teacher vacancies, compared with other local school administrative units not operating under a FHFP.



(3)        An assessment of the financial flexibilities utilized by local boards operating under a FHFP and any recommended changes or modifications.



(4)        Any available data on outcomes identified as goals in any FHFP.



(5)        Any other information the Superintendent deems relevant to the pilot program authorized by this section.



 



STATUTORY CHANGES FOR DPI FUNDING IN ARREARS



SECTION 7.18.(a)  G.S. 115C‑47(1a) reads as rewritten:



(1a)a.  To Establish and Maintain Kindergartens. –        Local boards of education shall provide for their respective local school administrative unit kindergartens as a part of the public school system for all children living in the local school administrative unit who are eligible for admission pursuant to sub‑subdivision c. of this subdivision provided that funds are available from State, local, federal, or other sources to operate a kindergarten program as provided in this subdivision.



b.         All kindergarten programs so established shall be subject to the supervision of the Department of Public Instruction and shall be operated in accordance with the standards adopted by the State Board of Education, upon recommendation of the Superintendent of Public Instruction. Among the standards to be adopted by the State Board of Education shall be a provision that the Board will allocate funds for the purpose of operating and administering kindergartens to each school administrative unit in the State based on the average daily membership for the best continuous three out of the first four school months of pupils in the kindergarten program during the last school year in that respective school administrative unit. Such allocations are to be made from funds appropriated to the State Board of Education for the kindergarten program.



c.         Any child who meets the requirements of G.S. 115C‑364 shall be eligible for enrollment in kindergarten. Any child who is enrolled in kindergarten and not withdrawn by the child's parent or legal guardian shall attend kindergarten.



d.         Notwithstanding any other provision of law to the contrary, subject to the approval of the State Board of Education, any local board of education may elect not to establish and maintain a kindergarten program. Any funds allocated to a local board of education which does not operate a kindergarten program may be reallocated by the State Board of Education, within the discretion of the Board, to a county or city board of education which will operate such a program.



SECTION 7.18.(b)  G.S. 115C‑111.05 reads as rewritten:



§ 115C‑111.05.  Funding for children with disabilities.



To the extent funds are made available for this purpose, the State Board shall allocate funds for children with disabilities to each local school administrative unit on a per child basis. Each local school administrative unit shall receive funds for the lesser of (i) all children who are identified as children with disabilities or (ii) thirteen percent (13%) of its allocated allotted average daily membership in the local school administrative unit for the current school year.



SECTION 7.18.(c)  G.S. 115C‑150.9 reads as rewritten:



§ 115C‑150.9.  Funding for academically or intellectually gifted students.



To the extent funds are made available for this purpose, the State Board shall allocate funds for academically or intellectually gifted students on a per child basis. A local school administrative unit shall receive funds for a maximum of four percent (4%) of its allocated allotted average daily membership for the current school year, regardless of the number of students identified as academically or intellectually gifted in the unit.



SECTION 7.18.(d)  G.S. 115C‑472.18(b) reads as rewritten:



(b)      Phase‑Out Provision. – If a local school administrative unit becomes ineligible for funding under the schedule in subsection (a) of this section, funding for that unit shall be phased out over a five‑year period. Funding for such local school administrative units shall be reduced in equal increments in each of the five years after the unit becomes ineligible. Funding shall be eliminated in the fifth fiscal year after the school administrative unit becomes ineligible. Allotments for eligible local school administrative units under this subsection shall not be reduced in any fiscal year by more than twenty percent (20%) of the amount received during the fiscal year when the local school administrative unit became ineligible to receive funds under this section. A local school administrative unit shall not become ineligible for funding if either the highest of the first two months' total projected average daily membership for the current year or the higher of the first two months' total prior year average daily membership would otherwise have made the unit eligible for funds under the schedule in subsection (a) of this section.Eligibility for funding is based on the allotted average daily membership of the unit. The initial allocation is based on the allotted average daily membership of the unit and shall not be adjusted for current year actual average daily membership.



 



COOPERATIVE PURCHASE AGREEMENTS FOR TECHNOLOGY



SECTION 7.19.(a)  Subsections (b), (c), and (d) of Section 8.14 of S.L. 2015‑241 are repealed.



SECTION 7.19.(b)  Part 3A of Article 8 of Chapter 115C of the General Statutes is amended by adding a new section to read:



§ 115C‑102.11.  Cooperative purchase agreements for technology.



(a)        The Department of Public Instruction shall collaborate with the Department of Information Technology and the Friday Institute for Educational Innovation of North Carolina State University to implement cooperative purchasing agreements for the procurement of information technology goods and services to support public school units.



(b)        For purposes of this section, the phrase cooperative purchasing agreement means an agreement implemented pursuant to this section and made available to public school units to provide the opportunity for collaborative or collective purchases of information technology goods and services in order to leverage economies of scale and to reduce costs.



(c)        Each cooperative purchasing agreement under this section shall do the following:



(1)        Be based on a defined statewide information technology need to support education in public school units.



(2)        Allow for equal access to technology tools and services.



(3)        Provide a standard competitive cost throughout North Carolina for technology tools and services.



(4)        Follow State information technology procurement laws, rules, and procedures.



(d)       The Department of Public Instruction shall solicit bids for new cooperative purchase agreements for all technology tools and may solicit bids for new cooperative purchase agreements for any services the Department deems necessary at least once every four years.



(e)        The Department shall maintain a list of the tools and services available through cooperative purchasing agreements in a location that is easily accessible by the governing bodies of public school units. The availability list shall be updated at least every four years when the bidding process required by subsection (d) of this section has been completed.



(f)        No later than October 15 of each year, the Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee on the contents of the availability list required by subsection (e) of this section, establishment of new cooperative purchasing agreements, savings resulting from existing cooperative agreements, and any issues impacting the establishment or maintenance of the cooperative agreements.



 



SUNSET TEXTBOOK COMMISSION



SECTION 7.20.(a)  G.S. 115C‑86 through G.S. 115C‑95 and G.S. 115C‑97 are repealed.



SECTION 7.20.(b)  Part 3 of Article 8 of Chapter 115C of the General Statutes reads as rewritten:



Part 3. Textbooks.Instructional Materials.



§ 115C‑85.  Textbook Instructional material needs are determined by course of study.



When the State Board of Education has adopted, upon the recommendation of the Superintendent of Public Instruction, a standard course of study at each instructional level in the elementary school and the secondary school, setting forth what subjects shall be taught at each level, it shall proceed to select and adopt textbooks.



As used in this part, textbook instructional materials means systematically organized material comprehensive enough to cover the primary objectives outlined in the standard course of study for a grade or course. Formats for textbooks instructional materials may be print or nonprint, including hardbound books, softbound books, activity‑oriented programs, classroom kits, and technology‑based programs digital resources that require the use of electronic equipment in order to be used in the learning process.



Textbooks adopted in accordance with the provisions of this Part shall be used by the public schools of the State except as provided in G.S. 115C‑98(b1).



…



§ 115C‑96.  Powers and duties of the State Board of Education in regard to textbooks.instructional materials.



(a)        The children of the public elementary and secondary schools of the State shall be provided with free basic textbooks instructional materials within the appropriation of the General Assembly for that purpose. To implement this directive, the State Board of Education shall evaluate annually the amount of money necessary to provide textbooks instructional materials based on the actual cost and availability of textbooks the instructional materials and shall request sufficient appropriations from the General Assembly.



(b)        The State Board of Education shall administer a fund and establish adopt rules and regulations necessary to:



(1)        Acquire by contract such basic textbooks as are or may be on the adopted list of the State of North Carolina which the Board finds necessary to meet the needs of the State public school system and to carry out the provisions of this Part.



(2)        Provide a system of distribution of these textbooks and distribute the books that are provided without using any depository or warehouse facilities other than those operated by the State Board of Education.



(3)        Provide for the free use, with proper care and return, of elementary and secondary basic textbooks. instructional materials. The title of said books the instructional materials shall be vested in the State.



…



§ 115C‑98.  Local boards of education to provide for local operation of the textbook program, the selection and procurement of other instructional materials, and the use of nonadopted textbooks.selection of supplementary and instructional materials.



(a)        Local boards of education shall adopt rules policies not inconsistent with the policies rules of the State Board of Education concerning the local operation of the textbook program.selection and procurement of instructional materials.



(b)        Local boards of education shall adopt written policies concerning the procedures to be followed in their local school administrative units for the selection and procurement of supplementary textbooks, library books, periodicals, audiovisual materials, and other supplementary and instructional materials needed for instructional purposes in the public schools of their units.



Local boards of education shall have sole authority to select and procure supplementary and instructional materials, including library books and media, whether or not the materials contain commercial advertising, to determine if the materials are related to and within the limits of the prescribed curriculum, and to determine when the materials may be presented to students during the school day. Supplementary materials and contracts for supplementary materials are not subject to approval by the State Board of Education.



Supplementary books and other instructional materials shall neither displace nor be used to the exclusion of basic textbooks.instructional materials.



(b1)      A local board of education may establish a community media advisory committee to investigate and evaluate challenges from parents, teachers, and members of the public to textbooks and supplementary instructional materials on the grounds that they are educationally unsuitable, pervasively vulgar, or inappropriate to the age, maturity, or grade level of the students. The State Board of Education shall review its rules and policies concerning these challenges and shall establish guidelines to be followed by community media advisory committees.



The local board, at all times, has sole authority and discretion to determine whether a challenge has merit and whether challenged material should be retained or removed.



(b2)      Local boards of education may:



(1)        Select, procure, and use textbooks that have not been adopted by the State Board of Education for use throughout the local school administrative unit for selected grade levels and courses; and



(2)        Approve school improvement plans developed under G.S. 115C‑105.27 that include provisions for using textbooks that have not been adopted by the State Board of Education for selected grade levels and courses.



All textbook instructional material contracts made under this subsection shall include a clause granting to the local board of education the license to produce braille, large print, and audiocassette tape tape, and other accessible copies of the textbooks instructional materials for use in the local school administrative unit.



…



§ 115C‑98.5.  Challenges to supplementary and instructional materials.



(a)        Local boards of education shall establish a community media advisory committee to investigate and evaluate challenges to supplementary and instructional materials.



(b)        At a minimum, the committee shall include the following:



(1)        A principal from a high school, middle school, and elementary school, respectively.



(2)        A teacher from a high school, middle school, and elementary school, respectively.



(3)        A parent of a student in high school or middle school and a parent of a student in elementary school.



(4)        A school library media coordinator from a high school, middle school, and elementary school, respectively.



(c)        Challenges to instructional and supplemental materials shall be made in writing and submitted to the local board of education. The challenge shall specify that the material being challenged is one or more of the following:



(1)        Obscene.



(2)        Inappropriate to the age, maturity, or grade level of the students.



(3)        Not aligned with the standard course of study.



(4)        Pervasively vulgar.



(d)       The local board of education and the media advisory committee shall only investigate and evaluate challenges submitted by a parent of a student enrolled in a school governed by the board, a teacher employed by the board, or a resident of the area of assignment for the board.



(e)        Within two weeks of the filing of the challenge, the media advisory committee shall hold a hearing and provide the challengers an opportunity to present their concerns to the committee. The committee may, in the committee's discretion, request additional information on the subject matter at the hearing from experts employed by the local school administrative unit. Within two weeks of the hearing, the committee shall make a recommendation to the local board of education on whether the challenge has merit and whether the challenged material should be retained or removed as unfit material. The committee's determination shall be limited to considerations of whether the material is unfit on the specific grounds of the material being (i) obscene, (ii) inappropriate to the age, maturity, or grade level of the students, (iii) not aligned with the standard course of study, or (iv) pervasively vulgar.



(f)        At the next meeting of the local board of education after the media advisory committee's recommendation is received, the local board shall determine whether the challenge has merit and whether the challenged material should be retained or removed as unfit material.



(g)        The local board, at all times, has sole authority to determine whether a challenge has merit and whether challenged material should be retained or removed. The decision of the board is subject to judicial review and a person seeking judicial review shall file a petition in the superior court of the county in which the local board is located.



§ 115C‑99.  Legal custodians of textbooks instructional materials furnished by State.



Local boards of education are the custodians of all textbooks instructional materials purchased by the local boards with State funds. They shall provide adequate and safe storage facilities for the proper care of these textbooks the instructional materials and emphasize to all students the necessity for proper care of textbooks.instructional materials.



§ 115C‑100.  Rental fees for textbooks instructional materials prohibited; damage fees authorized.



No local board of education may charge any pupil a rental fee for the use of textbooks. instructional materials. A pupil's parents or legal guardians may be charged damage fees for abuse or loss of textbooks instructional materials under rules adopted by the State Board of Education. All money collected from the sale of textbooks instructional materials purchased with State funds under the provisions of this Part shall be paid annually as collected to the State Board of Education.



§ 115C‑101.  Duties and authority of superintendents of local school administrative units.



The superintendent of each local school administrative unit, as an official agent of the State Board of Education, shall administer the provisions of this Part and the rules and regulations of the Board insofar as they apply to his the local school administrative unit. The superintendent of each local school administrative unit shall have authority to require the cooperation of principals and teachers so that the children may receive the best possible service, and so that all the books instructional materials and moneys may be accounted for properly. If any principal or teacher fails to comply with the provisions of this section, his the superintendent shall withhold his the salary vouchers of the principal until the duties imposed by this section have been performed.



If any superintendent fails to comply with the provisions of this section, the State Superintendent, as secretary to the State Board of  Education, shall notify the State Board of Education and the State Treasurer. The State Board and the State Superintendent shall withhold the superintendent's salary vouchers, and the State Treasurer shall make no payment until the State Superintendent notifies him confirms that the provisions of this section have been complied with.



§ 115C‑102.  Right to purchase; disposal of textbooks and instructional materials.



(a)        Any parent, guardian, or person in loco parentis may purchase any instructional material needed for any child in the public schools of the State from the board of education of the local school administrative unit in which the child is enrolled or, in the case of basic textbooks, from the State Board of Education.enrolled.



(b)        Notwithstanding Article 3A of Chapter 143 of the General Statutes, G.S. 143‑49(4), or any other provision of law, the State Board of Education may adopt rules authorizing local boards of education to dispose of discontinued instructional material, including State‑adopted textbooks.material.



SECTION 7.20.(c)  G.S. 115C‑11(d) reads as rewritten:



(d)      Voting. – No voting by proxy shall be permitted. Except in voting on textbook adoptions, a A majority of those present and voting shall be necessary to carry a motion and a roll call vote shall be had on each motion. A record of all such votes shall be kept in the minute book.



SECTION 7.20.(d)  G.S. 115C‑11(e) is repealed.



SECTION 7.20.(e)  G.S. 115C‑12(9)b. is repealed.



SECTION 7.20.(f)  G.S. 115C‑12(18)d. reads as rewritten:



d.       The State Board of Education shall modify the Uniform Education Reporting System to provide clear, accurate, and standard information on the use of funds at the unit and school level. The plan shall provide information that will enable the General Assembly to determine State, local, and federal expenditures for personnel at the unit and school level. The plan also shall allow the tracking of expenditures for textbooks, instructional materials, educational supplies and equipment, capital outlay, at‑risk students, and other purposes.



SECTION 7.20.(g)  G.S. 115C‑47 reads as rewritten:



§ 115C‑47.  Powers and duties generally.



In addition to the powers and duties designated in G.S. 115C‑36, local boards of education shall have the power or duty:



…



(6)        To Regulate Fees, Charges and Solicitations. – Local boards of education shall adopt rules and regulations governing solicitations of, sales to, and fund‑raising activities conducted by, the students and faculty members in schools under their jurisdiction, and no fees, charges, or costs shall be collected from students and school personnel without approval of the board of education as recorded in the minutes of said the board; provided, this subdivision shall not apply to such textbooks instructional material fees as are determined and established by the State Board of Education. The local board of education shall publish a schedule of fees, charges, and solicitations approved by the local board on the local school administrative unit's Web site by October 15 of each school year and, if the schedule is subsequently revised, within 30 days following the revision.



…



(33)      To Approve and Use Supplemental Materials. – Local boards of education shall have sole authority to select and procure supplementary instructional materials, whether or not the materials contain commercial advertising, pursuant to the provisions of G.S. 115C‑98(b).



(33a)    To Approve and Use Textbooks Not Adopted by State Board of Education. Instructional Materials. – Local boards of education shall have the authority to select, procure, and use textbooks not adopted by the State Board of Education instructional materials as provided in G.S. 115C‑98(b1).G.S. 115C‑98.



….



SECTION 7.20.(h)  G.S. 115C‑76.55 reads as rewritten:



§ 115C‑76.55.  Age‑appropriate instruction for grades kindergarten through fourth grade.



Instruction on gender identity, sexual activity, or sexuality shall not be included in the curriculum provided in grades kindergarten through fourth grade, regardless of whether the information is provided by school personnel or third parties. For the purposes of this section, curriculum includes the standard course of study and support materials, locally developed curriculum, supplemental instruction, and textbooks and other supplementary materials, but does not include responses to student‑initiated questions.



SECTION 7.20.(i)  G.S. 115C‑81.5(b)(3) is repealed.



SECTION 7.20.(j)  G.S. 115C‑81.25(b)(3) is repealed.



SECTION 7.20.(k)  G.S. 115C‑81.25(d) reads as rewritten:



(d)      Parental Review. – The State Board of Education shall make available to all local school administrative units for review by the parents and legal guardians of students enrolled at those units any State‑developed objectives for instruction, any approved textbooks, the list of reviewed materials, and any other State‑developed or approved materials that pertain to or are intended to impart information or promote discussion or understanding in regard to the prevention of sexually transmitted diseases, including HIV/AIDS, to the avoidance of out‑of‑wedlock pregnancy, or to the reproductive health and safety education curriculum. The review period shall extend for at least 60 days before use.



SECTION 7.20.(l)  G.S. 115C‑105.25(b)(12) reads as rewritten:



(12)    Funds allotted for textbooks and digital resources instructional materials may only be used for the purchase of textbooks and digital resources. to acquire instructional and supplemental materials as identified in Part 3 of Article 8 of this Chapter, and to acquire software necessary for the use of the instructional or supplemental materials. These funds shall not be transferred out of the allotment for any other purpose.



SECTION 7.20.(m)  G.S. 115C‑242(3) reads as rewritten:



(3)      The board of education of any local school administrative unit may operate the school buses of such unit one day prior to the opening of the regular school term for the transportation of pupils and employees to and from the school to which such pupils are assigned or in which they are enrolled and such employees are employed, for the purposes of the registration of students, the organization of classes, the distribution of textbooks, instructional materials, and such other purposes as will, in the opinion of the superintendent of the schools of such unit, promote the efficient organization and operation of such public schools.



SECTION 7.20.(n)  G.S. 115C‑271(d)(2) reads as rewritten:



(2)      Local funds appropriated for teachers, textbooks, instructional materials, or classroom materials, supplies, and equipment are not transferred or used for this purpose.



SECTION 7.20.(o)  G.S. 115C‑384(c) reads as rewritten:



(c)      Rental Fees for Textbooks Instructional Materials Prohibited; Damage Fees Authorized. – No rental fees are permitted for the use of textbooks, but damage fees may be collected pursuant to the provisions of G.S. 115C‑100.



SECTION 7.20.(p)  G.S. 115C‑390.2(l)(1) reads as rewritten:



(1)      The opportunity to take textbooks instructional materials and school‑furnished digital devices home for the duration of the absence.



SECTION 7.20.(q)  G.S. 115C‑390.5(c)(1) reads as rewritten:



(1)      The opportunity to take textbooks instructional materials home for the duration of the suspension.



SECTION 7.20.(r)  G.S. 115C‑398 reads as rewritten:



§ 115C‑398.  Damage to school buildings, furnishings, textbooks.instructional materials.



Students and their parents or legal guardians may be liable for damage to school buildings, furnishings and textbooks instructional materials pursuant to the provisions of G.S. 115C‑523, 115C‑100 and 14‑132.



SECTION 7.20.(s)  G.S. 143A‑48 is repealed.



SECTION 7.20.(t)  No further funds shall be allocated into the State Textbook fund. The Department of Public Instruction, in coordination with the Office of State Budget and Management, shall ensure that the fund is dissolved once all funds are expended.



SECTION 7.20.(u)  Effective July 1, 2024, there is established the Instructional Materials funding allotment within the State Public School Fund. The State Board of Education shall establish the purposes for which the funds within the Instructional Materials funding allotment may be used for as the purchase and maintenance of instructional and supplemental materials as identified in Part 3 of Article 8 of Chapter 115C of the General Statutes. Funds allocated to the Instructional Materials funding allotment in fiscal years 2024‑2025, 2025‑2026, and 2026‑2027 shall not revert to the General Fund at the end of the fiscal year but shall remain available until expended.



SECTION 7.20.(v)  This section is effective when it becomes law and applies beginning with the 2024‑2025 school year.



 



CLARIFY INTERSCHOLASTIC ATHLETIC REPORTS



SECTION 7.21.(a)  G.S. 115C‑407.75 reads as rewritten:



§ 115C‑407.75.  Public school units annual interscholastic athletic reports.



(a)        Each public school unit with one or more participating schools shall annually report by June 15 the following information to the Superintendent of Public Instruction and the State Board of Education:



(1)        The total dollar amount spent by the public school unit on interscholastic athletic activities, activities from public school unit funds, by the following categories:



a.         Administering association fees.



b.         Salaries or stipends for coaches and faculties for duties associated solely with interscholastic athletics.



c.         Capital costs, including new construction, repair and renovation, and maintenance costs for existing athletic facilities.



d.         Uniform and equipment costs.



e.         Travel and transportation costs.



f.          Officiating costs.



g.         Other identified costs.costs of more than five thousand dollars ($5,000).



(2)        The total dollar amount received by the public school unit from interscholastic athletic activities, including funds held in special funds of individual schools, by the following categories:



a.         Gate receipts.



b.         Concession sales.



c.         Merchandise sales or sales of items directly related to interscholastic athletics, including apparel and audiovisual materials.



d.         Student fees.



e.         Monetary and in‑kind contributions from third‑party organizations.



f.          State or local funding expended on capital costs for athletic facilities.



g.         Other identified sources of funds.funds that provide more than five thousand dollars ($5,000).



(b)        The Superintendent of Public Instruction shall provide a summary of the reports by public school units and a copy of each public school unit report to the Joint Legislative Education Oversight Committee no later than October 15 annually.



SECTION 7.21.(b)  This section is effective when it becomes law and applies to reports submitted on or after July 15, 2025.



 



cep time line shift and clarify breakfast location



SECTION 7.22.  Section 7.59 of S.L. 2023‑134 reads as rewritten:



SECTION 7.59.(a)  Program; Purpose. – The Department of Public Instruction shall establish the CEP Meal Program Incentive for the 2023-2025 fiscal biennium to expand public school participation in the federal Community Eligibility Provision (CEP) program to increase the number of students with access to healthy, cost‑free school breakfast and lunch. The incentive program shall be available to public school units for the 2024‑2025 fiscal year. In each year where funds are made available for the purpose, the CEP program shall be run subject to the provisions of this section.



…



SECTION 7.59.(c)  Application. – By January 15, 2024, April 15 of each year of the program, the Department shall develop the application for the incentive program and make it available to public school units. Public school units or individual schools shall submit their applications by March 1, 2024. June 1 of each year of the program. At a minimum, the application shall include the following information:



(1)        The school or schools that will participate in the CEP program.



(2)        The Identified Student Percentage (ISP) for the school or schools for the 2024-2025 current school year.



(3)        The number of students enrolled in the school or schools for the 2024-2025 current school year.



(4)        Participation rates in the National School Breakfast and Lunch programs for the 2023‑2024 school year for the schools requesting to receive the incentive.



SECTION 7.59.(d)  Selection. – By April 30, 2024, July 15 of each year of the program, the Department shall determine whether each applicant is eligible to participate in the incentive program. The Department shall then award grants to all eligible public school units and schools. If there are insufficient funds to award grants to all eligible public school units or schools, the Department shall first prioritize awarding grants to public school units and schools with an Identified Student Percentage (ISP) of greater than or equal to fifty‑five percent (55%) and then prioritize awarding grants to those schools that will draw the greatest federal match.



SECTION 7.59.(e)  Grants. – The Department shall issue State reimbursements to participating public school units and schools to supplement federal reimbursements of school meals. State reimbursement shall equal the difference between the federal free rate and the federal paid rate for the number of meals served at the participating schools equal to a 0.2 multiplier of the ISP for the participating schools. State and federal reimbursements shall not exceed one hundred percent (100%) of the federal free rate of meals served. Schools utilizing the incentive shall offer breakfast after the bell and in the classroom.



…



SECTION 7.59.(g)  Report. – No later than January 1, 2025, 1 of each year of the program, the Department shall report to the Joint Legislative Education Oversight Committee and the Fiscal Research Division at least the following information:



….



 



AFTER‑SCHOOL ROBOTICS GRANT PROGRAM



SECTION 7.23.  Article 16 of Chapter 115C of the General Statutes is amended by adding a new Part to read:



Part 12. Academic Grant Programs.



§ 115C‑238.90.  Educational and Competitive After‑School Robotics Grant Program.



(a)        Program; Purpose. – To the extent funds are made available, there is established the Educational and Competitive After‑School Robotics Grant Program (Program). The purpose of the Program shall be to (i) promote evidence‑based, after‑school programs for robotics education and competition and (ii) motivate students to pursue education and career opportunities in science, technology, engineering, and mathematics while building critical life and work‑related skills. The Program shall operate in accordance with the provisions of this section in any year in which funds are made available for the purpose.



(b)        Eligibility. – Any public school unit is eligible to apply to the Department of Public Instruction for a grant to develop an educational and competitive after‑school robotics program with a robotics partner. As used in this subsection, the term robotics partner shall refer to a third‑party entity, such as a nonprofit organization or institution of higher education, approved by the Department of Public Instruction, that is able to provide adequate support for an after‑school robotics program. In order to provide adequate support, a robotics partner must meet at least all of the following criteria:



(1)        Have a national presence in robotics education and competition.



(2)        Provide adequate instruction and programming for students and adult volunteers in (i) robotics education, (ii) project‑based learning, and (iii) competitive robotics.



(3)        Promote a safe and equitable social environment.



(c)        Applications; Criteria and Guidelines. – No later than August 1 of each year of the Program, the Department shall develop and publish criteria and guidelines for the application process for the Program in the upcoming school year, including any documentation required to be submitted by the applicants. The Department shall accept applications until September 30. Applications shall include, at a minimum, the following information:



(1)        Evidence that the applicant has or will be able to establish a relationship with a robotics partner.



(2)        A proposed budget for the educational and competitive after‑school robotics program.



(d)       Award and Use of Funds. – The Department shall award grants to the selected applicants by October 31 of each year of the Program. Funds may be used for any of the following purposes:



(1)        Establish a relationship with a robotics partner.



(2)        Purchase robotics kits.



(3)        Provide stipends for coaches.



(4)        Make payments associated with participation in a robotics league or robotics competition.



(5)        Pay fees incurred as part of the administration of a robotics team.



(e)        Reporting. – No later than October 15 of each year of the Program, the Department shall report the following information from the prior school year to the Joint Legislative Education Oversight Committee and the Fiscal Research Division:



(1)        The public school units that received grants and the amount of those grants.



(2)        The robotics partner for each public school unit.



(3)        The number of public school units that applied for grants but did not receive one.



(4)        The extent to which students participating in after‑school robotics programs funded by the Program experienced measurable improvement in academic performance.



 



DOA TO ADMINISTRATIVELY SUPPORT RESIDENTIAL SCHOOLS



SECTION 7.24.(a)  G.S. 115C‑150.11 reads as rewritten:



§ 115C‑150.11.  General supervision over Establishment of the schools for the deaf and blind.



(a)        Establishment. – The following are created as separate State agencies governed respectively by boards of trustees:



(1)        The Governor Morehead School for the Blind of the Department of Public Instruction, for the function, purpose, and duty of serving students who are blind or visually impaired from birth to age 22. The Governor Morehead School for the Blind shall include the Governor Morehead Preschool.



(2)        The Eastern North Carolina School for the Deaf of the Department of Public Instruction, for the function, purpose, and duty of serving students who are deaf or hard of hearing.



(3)        The North Carolina School for the Deaf of the Department of Public Instruction, for the function, purpose, and duty of serving students who are deaf or hard of hearing.



(a1)      State Board of Education Supervision. – The State Board of Education shall have general supervision over the schools for the deaf and blind in accordance with G.S. 115C‑12 and shall establish approximately equivalent service areas for each school for the deaf that cover the entire State. In establishing the service area for each school for the deaf, the State Board shall consider both the geographic proximity to the school for the deaf and the population of the service area. The State Board shall evaluate the effectiveness of the schools for the deaf and blind and shall, through the application of the accountability system developed under G.S. 115C‑83.15 and G.S. 115C‑105.35, measure the educational performance and growth of students placed in each school. If appropriate, the Board may modify this system to adapt to the specific characteristics of these schools. The boards of trustees for the schools for the deaf and blind shall be subject to rules adopted by the State Board of Education in accordance with Chapter 150B of the General Statutes.Statutes for public school units.



(b)        Independent Operation. – Except as otherwise provided for in this Article, the schools for the deaf and blind shall be housed administratively within the Department of Public Instruction for purposes of distribution of State funds, but each school for the deaf and blind shall operate independently with a board of trustees as the governing body. Department of Public Instruction Support. – The Department of Public Instruction shall include employees of the schools for the deaf and blind and employees of those schools in coverage for professional liability liability, worker's compensation, property, and liability policies purchased by the Department for the Department or its employees employees, and shall enter into a memorandum of understanding with the schools to facilitate the purchase of other insurance policies for those schools. In all other matters, the Department of Public Instruction shall provide services, support, and assistance to schools for the deaf and blind in the same manner and degree as for a local school administrative unit.



(c)        Administrative Support. – The Department of Administration shall provide support to each school in matters related to finance, human resources, and procurement, including for information technology. Each school shall enter into a memorandum of understanding with the Department of Administration with regard to this support. No civil liability shall attach to the Department of Administration, or to any of its employees, individually or collectively, for any acts or omissions of a school.



(d)       Immunity. – In addition to all other immunities provided to them by applicable State law, a school, its board of trustees, and the school's members, employees, and agents shall be entitled to the specific immunities provided for this Chapter applying to the State Board of Education, Superintendent of Public Instruction, a local board of education, a local school administrative unit, and their members and employees. Immunity established by this subsection shall be deemed to be waived to the extent of indemnification under Article 31A and Article 31B of Chapter 143 of the General Statutes and to the extent sovereign immunity is waived under the State Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes.



(e)        Funding. – In addition to appropriations directed solely to the schools for the deaf and blind, the schools shall be eligible to (i) receive the benefit of any regional or statewide systems of support provided by the Department of Public Instruction to all public school units and  (ii)  apply for any grants available to all public school units. The schools for the deaf and blind shall not be eligible to receive funding allotments for local school administrative units unless otherwise directed by the General Assembly.



SECTION 7.24.(b)  G.S. 115C‑150.16 reads as rewritten:



§ 115C‑150.16.  Applicability of Chapter.



Except as otherwise provided in this Article and Article 7B of this Chapter, the requirements of this Chapter shall not apply to the schools for the deaf and blind. Schools for the deaf and blind shall be considered a State agency, as defined in G.S. 143C‑1‑1, and shall comply with all requirements for State agencies in State law unless otherwise specified in this Article. Schools for the deaf and blind shall not be considered local school administrative units.



SECTION 7.24.(c)  G.S. 115C‑150.11(a), (b), and (c) apply beginning July 1, 2025.



SECTION 7.24.(d)  G.S. 115C‑150.12A(b) reads as rewritten:



(b)      Qualifications. – No employee of the school may be a member of the board of trustees of that school. A board member that becomes an employee of that school shall be deemed to resign from his or her membership on the board of trustees. Appointing entities are strongly encouraged to fill the appointments to each board of trustees with persons with expertise or experience in the areas of education for those who are deaf or hard of hearing or who are blind or visually impaired, administration and governance, finance and budgeting, or who otherwise have demonstrated concern for quality of education for those who are deaf or hard of hearing or who are blind or visually impaired.



SECTION 7.24.(e)  G.S. 115C‑150.12A(f) reads as rewritten:



(f)       Meetings. – A board of trustees shall meet at least four times a year and also at such other times as it may deem necessary. A majority of the voting members of the board shall constitute a quorum for the transaction of business. All meetings shall be subject to Article 33C of Chapter 143 of the General Statutes. The members shall receive per diem compensation and necessary travel and subsistence expenses while engaged in the discharge of their official duties, in accordance with the provisions of G.S. 138‑5.



SECTION 7.24.(f)  G.S. 115C‑150.10(5) is repealed.



SECTION 7.24.(g)  G.S. 115C‑150.10 is amended by adding a new subdivision to read:



(10)    Superintendent. – The chief administrator of a school for the deaf or the school for the blind.



SECTION 7.24.(h)  G.S. 115C‑150.12B reads as rewritten:



§ 115C‑150.12B.  Employees of schools for the deaf and blind.



(a)        Director. Superintendent. – Each board of trustees of a school shall appoint a director superintendent for that school, who school who meets the requirements of G.S. 115C‑271 for employment. The superintendent shall act as secretary to the board of trustees in accordance with G.S. 115C‑150.12A and shall manage day‑to‑day operations of the school G.S. 115C‑150.12A. All acts of the boards of trustees, not in conflict with State law, shall be binding on the superintendent, and the superintendent shall carry out all rules and regulations of the board and other duties as prescribed by the board of trustees. For purposes of application to other statutes in this Chapter, the director superintendent shall be the equivalent of a superintendent of schools a local school administrative unit and shall fulfill the duties of a superintendent as provided in Article 18 of this Chapter.



(b)        Director Superintendent Duties. – The director superintendent shall recommend school personnel to the board of trustees. The director superintendent shall supervise the administrative staff of the school, including the principal, director of human resources, and director of business and finance.



…



(e)        Human Resources. – The board of trustees is responsible for providing human resources and employment‑related services for the school. The board of trustees may delegate some or all of this responsibility to the director superintendent for the school or to the director of human resources, in its discretion.



SECTION 7.24.(i)  G.S. 115C‑150.12C(14) reads as rewritten:



(14)    Conduct and duties of personnel. – The board of trustees, upon the recommendation of the director, superintendent, shall have full power to make rules governing the conduct of teachers, principals, and supervisors; the kind of reports they shall make; and their duties in the care of school property. Prior to the beginning of each school year, the board of trustees shall identify all reports that are required for the school year and shall, to the maximum extent possible, eliminate any duplicate or obsolete reporting requirements and consolidate remaining reporting requirements. Prior to the beginning of each school year, the board of trustees shall also identify software protocols that could be used to minimize repetitious data entry and shall make them available to teachers and other employees.



SECTION 7.24.(j)  G.S. 115C‑150.13A(c)(2)a. reads as rewritten:



a.        A chair designated by the director superintendent of the school.



SECTION 7.24.(k)  G.S. 115C‑150.13A(c)(4) reads as rewritten:



(4)      A final admissions determination made by the director superintendent of the school or the director superintendent of the school's designee.



SECTION 7.24.(l)  G.S. 115C‑150.13A(e) reads as rewritten:



(e)      Disenrollment. – A student's continued enrollment in an educational program assignment status shall be subject to reevaluation by the admissions committee when determined necessary by the school to assess if the student continues to meet eligibility criteria. The disenrollment assessment shall follow the same procedures as the admissions process, and a final determination shall be made by the director superintendent or the director's superintendent's designee.



SECTION 7.24.(m)  G.S. 115C‑150.15 reads as rewritten:



§ 115C‑150.15.  Reporting to schools on deaf and blind children.



(a)        Request for Consent. – Local superintendents Superintendents of local school administrative units shall require that the following request for written consent, along with any informational materials provided by the school for the blind or the school for the deaf in the service area in which the local school administrative unit is located, be presented to parents or custodians of any children who are deaf or hard of hearing or are blind or visually impaired no later than October 1 of each school year: North Carolina provides two public schools for the deaf serving students who are deaf or hard of hearing: the Eastern North Carolina School for the Deaf and the North Carolina School for the Deaf. North Carolina also has a public school for the blind serving students who are blind or visually impaired: the Governor Morehead School for the Blind. Do you consent to the release of your contact information and information regarding your child and his or her hearing or vision status to these schools so that you can receive more information on services offered by those campuses?



(b)        Annual Report to Schools for the Deaf and Blind. – Local superintendents Superintendents of local school administrative units shall report by November 30 each year the names and addresses of parents or custodians of any deaf or hard of hearing or blind or visually impaired children who have given written consent to the directors superintendents of the schools for the deaf and blind. The report shall include whether the hearing and visual impairments range from partial to total disability, and if the child has multiple disabilities with the visual or hearing impairment not identified as the primary disability of the student. The report shall also be made to the Department of Public Instruction.



(c)        Confidentiality of Records. – The directors superintendents of the schools for the deaf and blind shall treat any information reported to the schools by a local superintendent of a local school administrative unit under subsection (b) of this section as confidential, except that a director superintendent of the schools for the deaf and blind or the director's superintendent's designee may contact the parents or custodians of any hearing impaired or visually impaired children whose information was included in the report. The information shall not be considered a public record under G.S. 132‑1.



(d)       Transfer of Information. – Upon the written request of a parent or custodian of a student who has applied to a school for the deaf or school for the blind, the local superintendent of a local school administrative unit or, if there is no superintendent, the staff member with the highest decision‑making authority in the public school unit shall share with the director of the school superintendent of the schools for the deaf and blind a copy of all current evaluation data and a copy of the current or proposed individualized education plan for any child enrolled in that public school unit who is identified as a child with a disability who is deaf, hard of hearing, blind, or visually impaired.



SECTION 7.24.(n)  G.S. 115C‑150.12C(2) reads as rewritten:



(2)      Exercise judicial functions. – The board of trustees shall employ or contract with private counsel to provide advice and representation for the school. The board may institute all actions, suits, or proceedings against officers, persons, or corporations, or their sureties, for the recovery, preservation, and application of all money or property which may be due to or should be applied to the support and maintenance of the school. In all actions brought in any court against a board of trustees, the order or action of the board shall be presumed to be correct, and the burden of proof shall be on the complaining party to show the contrary. G.S. 114‑2.3 and G.S. 147‑17 shall not apply to the schools for the deaf and blind. Upon the request of the board of trustees of a school, the Attorney General shall provide representation as required by G.S. 114‑2. Each school shall be regarded as a State agency for the purposes of the State Tort Claims Act and associated representation by the Office of the Attorney General with regards to litigation defense.



SECTION 7.24.(o)  G.S. 115C‑150.12C(27) reads as rewritten:



(27)    Group accident and health insurance for students. students, other liability insurance. – A board of trustees may purchase group purchase:



a.         Group accident, group health, or group accident and health insurance for students in accordance with G.S. 58‑51‑81.



b.         Liability insurance as provided in G.S. 115C‑42 and directors and officers insurance. G.S. 115C‑42 shall apply to a school that purchases liability insurance consistent with that section.



SECTION 7.24.(p)  G.S. 115C‑150.13A(f) reads as rewritten:



(f)       Free Appropriate Public Education. – The local school administrative unit or charter school in which the student is enrolled shall have the initial responsibility of identifying and evaluating the special education needs of the student and providing a special educational program and related services in accordance with Article 9 of this Chapter. If a parent submits an application to the school for enrollment of the parent's child in the school's educational program, and if the child is determined to meet the eligibility criteria for admission to the school's educational program, the school is responsible for the provision of a free appropriate public education. education upon enrollment. However, a subsequent determination by the school that the student no longer meets eligibility criteria immediately transfers the responsibility for the provision of a special educational program and related services to ensure a free appropriate public education back to the local school administrative unit or charter school in which the student was previously enrolled.



SECTION 7.24.(q)  G.S. 115C‑150.13A(h) reads as rewritten:



(h)      Due Process Hearing. Eligibility Appeal. – A parent may seek an impartial due process hearing appeal to the board of trustees following a final determination on a student's eligibility by the director. If the parent pursues a due process hearing to challenge the school's ineligibility determination, the student's stay put placement shall not be the school but shall be the student's local school administrative unit or charter school.superintendent. Parents may not seek an impartial due process hearing regarding any eligibility determination.



SECTION 7.24.(r)  G.S. 150B‑1(e) is amended by adding a new subdivision to read:



(29)    The Governor Morehead School for the Blind, Eastern North Carolina School for the Deaf, and the North Carolina School for the Deaf, with respect to eligibility determinations under G.S. 115C‑150.13A.



SECTION 7.24.(s)  Section 5 of S.L. 2023‑10 is repealed.



SECTION 7.24.(t)  For the 2024‑2025 school year, the Department of Public Instruction shall administratively house the Governor Morehead School for the Blind, Eastern North Carolina School for the Deaf, and North Carolina School for the Deaf (Schools). The Department of Public Instruction shall include the Schools and employees of the schools in coverage for professional liability, worker's compensation, property, and liability policies purchased by the Department of Public Instruction for the Department and its employees, and shall enter into a memorandum of understanding with the Schools to facilitate the purchase of other insurance policies for those Schools. The Department of Public Instruction and the Schools shall enter into a memorandum of understanding with regards to the administrative support. At a minimum, the Department of Public Instruction shall provide administrative support in matters related to finance, human resources, and procurement, including for information technology and capital.



SECTION 7.24.(u)  No civil liability shall attach to the State Board of Education, the Department of Public Instuction, the Superintendent of Public Instruction, or to any of their members or employees, individually or collectively, for any acts or omissions of the Governor Morehead School for the Blind, Eastern North Carolina School for the Deaf, and North Carolina School for the Deaf, the boards of trustees of those schools, or their members and employees.



SECTION 7.24.(v)  The Department of Administration, in coordination with the Schools, the Department of Public Instruction, and the Department of Information Technology, shall study the costs and positions needed for support of the Schools and shall report this information and any recommended legislation to the Fiscal Research Division and the Joint Legislative Education Oversight Committee no later than March 1, 2025.



SECTION 7.24.(w)  The Office of the State Controller and Office of State Budget and Management shall ensure that the Schools are established as State agencies prior to July 1, 2025.



SECTION 7.24.(x)  The Department of Public Instruction, the Office of the State Controller, the Office of State Budget and Management, and the Department of Administration shall each designate an individual to serve as a liaison for the Schools to assist with technical and administrative questions during the 2024‑2025 school year.



SECTION 7.24.(x1)  The North Carolina Collaboratory, in consultation with each of the Schools, the Department of Public Instruction, and the Department of Administration, shall study each School's administrative structure, operations, and policies, including the cost and positions needed for the support of the Schools and how to optimize operation of that School to maximize the educational outcomes for the School's students and ensure the School's success and independence. The Collaboratory shall report its findings, recommendations for each School, and any recommended legislation to the Fiscal Research Division and the Joint Legislative Education Oversight Committee no later than March 1, 2025.



SECTION 7.24.(y)  Effective July 1, 2024, the powers, duties, and functions, records, personnel, contracts, property, unexpended balances of appropriations, allocations or other funds, including the functions of budgeting and purchasing, are transferred from the Department of Public Instruction and State Board of Education to the Governor Morehead School for the Blind and Governor Morehead Preschool, Eastern North Carolina School for the Deaf, and North Carolina School for the Deaf, respectively. The respective boards of trustees of the Governor Morehead School for the Blind, Eastern North Carolina School for the Deaf, and North Carolina School for the Deaf shall exercise all prescribed statutory powers, including the management functions of planning, organizing, staffing, directing, coordinating, reporting, and budgeting.



SECTION 7.24.(z)  Subsection (b) of Section 7 of S.L. 2023‑10 reads as rewritten:



SECTION 7.(b)  Each board of trustees of the schools for the deaf and blind shall provide interim reports to the Joint Legislative Education Oversight Committee by December 15, 2023, and March 15, 2024, and a final report by July 1, 2024, September 1, 2024, on the plans and progress in transitioning to assumption of administration of the schools for the deaf and blind, with the support of and consultation with staff of the school for that board. The Department of Public Instruction shall provide information as requested to each board of trustees. The reports shall include the following:



….



SECTION 7.24.(aa)  The Department of Administration shall reassign all assets in Complex 1‑92‑9 to the Governor Morehead School.



SECTION 7.24.(bb)  The Governor Morehead School and Department of Health and Human Services shall enter into a memorandum of understanding related to use of assets in Complex 1‑92‑9 for shared services.



SECTION 7.24.(cc)  G.S. 14‑458.2(a) reads as rewritten:



(a)      The following definitions apply in this section:



(1)        School employee. – The term means any of the following:



a.         An employee of a local board of education, a charter school authorized under G.S. 115C‑218.5, a regional school created under G.S. 115C‑238.62, a laboratory school created under G.S. 116‑239.7, public school unit or a nonpublic school which has filed intent to operate under Part 1 or Part 2 of Article 39 of Chapter 115C of the General Statutes.



b.         An independent contractor or an employee of an independent contractor of a local board of education, a charter school authorized under G.S. 115C‑218.5, a regional school created under G.S. 115C‑238.62, a laboratory school created under G.S. 116‑239.7, a public school unit or a nonpublic school which has filed intent to operate under Part 1 or Part 2 of Article 39 of Chapter 115C of the General Statutes, if the independent contractor carries out duties customarily performed by employees of the school.



(2)        Student. – A person who has been assigned to a school by a local board of education as provided in G.S. 115C‑366 or has enrolled in a charter school authorized under G.S. 115C‑218.5, a regional school created under G.S. 115C‑238.62, a laboratory school created under G.S. 116‑239.7, public school unit or a nonpublic school which has filed intent to operate under Part 1 or Part 2 of Article 39 of Chapter 115C of the General Statutes, or a person who has been suspended or expelled from any of those schools within the last year.



SECTION 7.24.(dd)  G.S. 115C‑102.9(b) reads as rewritten:



(b)      Each public school unit shall annually submit all categories of information included in the digital learning dashboard no later than November 15. For subdivisions (2) and (3) of subsection (a) of this section, residential schools for the deaf and blind shall report on access and connectivity separately for the dormitories and the student's home.



SECTION 7.24.(ee)  Subsections (a) through (f) and (n) through (r) of this section are effective July 1, 2024. Subsections (g) through (m) of this section are effective July 1, 2025. The remainder of this section is effective when it becomes law.



 



NORTHEAST REGIONAL SCHOOL OF BIOTECHNOLOGY and AGRISCIENCE



SECTION 7.25.(a)  Chapter 115C of the General Statutes is amended by adding a new Article to read:



Article 15A.



Northeast Regional School of Biotechnology and Agriscience.



§ 115C‑229.5.  Purpose.



(a)        The purpose of this Article is to establish the Northeast Regional School of Biotechnology and Agriscience as a school of choice that will expand student opportunities for educational success through high quality instructional programming in the northeastern region of the State. The Northeast Regional School of Biotechnology and Agriscience may partner with other education partners, including local boards of education, institutions of higher education, or private businesses or organizations, and shall foster, encourage, and promote the development of knowledge and skills in career clusters of critical importance to the region.



(b)        The Northeast Regional School of Biotechnology and Agriscience is a political subdivision of the State and shall operate as a public school unit with a board of directors as the governing body.



(c)        Except as otherwise provided in this Article and Article 7B of this Chapter, the Northeast Regional School of Biotechnology and Agriscience is exempt from statutes and rules applicable to a local board of education or local school administrative unit.



§ 115C‑229.10.  Definitions.



The following definitions apply in this Part:



(1)        Regional school. – The Northeast Regional School of Biotechnology and Agriscience.



(2)        Regional school board of directors or board of directors. – The governing board of the Northeast Regional School of Biotechnology and Agriscience.



(3)        Regional school service area. – The counties of Beaufort, Bertie, Camden, Currituck, Dare, Edenton, Edgecombe, Gates, Halifax, Hertford, Hyde, Martin, Northampton, Pasquotank, Perquimans, Pitt, Tyrrell, and Washington.



§ 115C‑229.15.  Board of directors; appointment; terms of office.



(a)        The board of directors of the regional school shall consist of the following members:



(1)        The Superintendent of Public Instruction shall appoint three members who are either a local board of education member or superintendent of a local school administrative unit in a county where at least five percent (5%) of the students enrolled in the regional school reside.



(2)        The State Board of Education shall appoint five members as representatives of the business community, upon the recommendation of the North Carolina Economic Developers Association, who reside in a county where at least five percent (5%) of the students enrolled in the regional school reside. At least one of the appointees shall be a resident of the county in which the regional school is located.



(3)        The Parent Advisory Council established by G.S. 115C‑229.20 shall appoint one member to the board of directors from among the Council membership. The seat shall be declared vacant if the child of the appointed parent no longer attends the regional school.



(4)        Any institution of higher education partner may appoint a representative of the institution of higher education to serve as an ex officio member of the board of directors.



(b)        Members shall serve four‑year terms of office. Appointed members of the board of directors shall be selected for their interest in and commitment to the importance of public education to regional economic development and to the purposes of the regional school.



(c)        Whenever an appointed member of the board of directors ceases to meet the qualifications for appointment or for any reason other than ill health or service in the interest of the State or nation to be present at three successive regular meetings of the board of directors, his or her place as a member of the board of directors shall be deemed vacant. Any member of the board of directors may be removed from office by the appointing authority for misfeasance, malfeasance, or nonfeasance in office. All vacancies shall be filled by the appointing authority for the remainder of the term of office by an individual meeting the qualifications for the vacated seat.



§ 115C‑229.20.  Parent Advisory Council; purpose; appointments.



(a)        Purpose. – There shall be a Parent Advisory Council to serve as a resource and provide input to the board of directors as to the operation of the regional school. The board of directors shall consult the Parent Advisory Council when considering changes to the regional school's operations that may significantly impact students attending the regional school.



(b)        Appointment. – The Superintendent of Public Instruction shall appoint one member from each county where at least five percent (5%) of the students enrolled in the regional school reside to the Parent Advisory Council for a term of four years or until the member's child no longer attends the regional school. Appointees shall be parents or guardians of students attending the regional school and shall, to the extent possible, reflect the demographic composition of the regional school.



§ 115C‑229.25.  Board of directors; meetings; rules of procedure; officers.



(a)        The board of directors shall meet at least four times a year and may hold special meetings at any time at the call of the chair or upon petition addressed to the chair by a majority of the members of the board of directors. All meetings of the board of directors shall be subject to the requirements of Article 33C of Chapter 143 of the General Statutes.



(b)        The board of directors shall elect a chair and a vice‑chair from among its members, who shall serve a two‑year term.



(c)        All members of the board of directors shall be voting members except for the chair, who may vote only on matters to break a tie.



(d)       The board of directors shall determine its own rules of procedure and may delegate to such committees as it may create such of its powers as it deems appropriate.



(e)        Members of the board of directors shall receive such per diem compensation and necessary travel and subsistence expenses while engaged in the discharge of their official duties as is provided by law for members of State boards and commissions.



§ 115C‑229.30.  Board of directors; corporate powers.



(a)        The board of directors of the regional school shall be known and distinguished by the name of The Northeast Regional School of Biotechnology and Agriscience Board of Directors and shall continue as a body politic and corporate and by that name shall have perpetual succession and a common seal. It shall be able and capable in law to take, demand, receive, and possess all moneys, goods, and chattels that shall be given for the use of the regional school, and to apply to same according to the will of the donors; and by gift, purchase, or devise to receive, possess, enjoy, and retain forever any and all real and personal estate and funds, of whatsoever kind, nature, or quality the same may be, in special trust and confidence that the same, or the profits thereof, shall be applied to and for the use and purpose of establishing and endowing the regional school, and shall have power to receive donations from any source whatsoever, to be devoted exclusively to the purposes of the maintenance of the regional school, or according to the terms of the donation.



(b)        The board of directors shall be able and capable in law to bargain, sell, grant, alien, or dispose of and convey and assure to the purchasers any and all such real and personal estate and funds as it may lawfully acquire when the condition of the grant to it or the will of the devisor does not forbid it; and shall be able and capable in law to sue and be sued in all courts whatsoever; and shall have power to open and receive subscriptions; and in general may do all such things as are usually done by bodies corporate and politic, or such as may be necessary for the promotion of learning and virtue.



§ 115C‑229.35.  Board of directors; powers and duties.



The board of directors shall have the following powers and duties:



(1)        The board of directors shall establish the regional school's academic program in accordance with the following:



a.         The board of directors shall establish the standard course of study for the regional school. This course of study shall set forth the subjects to be taught in each grade and the texts and other educational materials on each subject to be used in each grade. The board of directors shall design its programs to meet at least the student performance standards adopted by the State Board of Education and the student performance standards contained in this Chapter.



b.         The board of directors shall conduct student assessments required by the State Board of Education.



c.         The board of directors shall provide the opportunity to earn or obtain credit toward degrees from a community college subject to Chapter 115D of the General Statutes or a constituent institution of The University of North Carolina.



d.         The board of directors shall adopt a school calendar consisting of a minimum of 185 days or 1,025 hours of instruction covering at least nine calendar months.



e.         The board of directors shall ensure that financial literacy instruction is provided as required by the State Board of Education pursuant to G.S. 115C‑81.65, including required professional development for teachers of the EPF course.



(2)        The board of directors shall establish policies and standards for academic performance, attendance, and conduct for students of the regional school. The policies of the board of directors shall comply with Article 27 of this Chapter.



(3)        Every parent, guardian, or other person in this State having charge or control of a child who is enrolled in the regional school and who is less than 16 years of age shall cause the child to attend school continuously for a period equal to the time that the regional school shall be in session. No person shall encourage, entice, or counsel any child to be unlawfully absent from the regional school. Any person who aids or abets a student's unlawful absence from the regional school shall, upon conviction, be guilty of a Class 1 misdemeanor. The principal shall be responsible for implementing such additional policies concerning compulsory attendance as shall be adopted by the board of directors, including regulations concerning lawful and unlawful absences, permissible excuses for temporary absences, maintenance of attendance records, and attendance counseling.



(4)        The board of directors shall comply with the reporting requirements established by the State Board of Education in the Uniform Education Reporting System.



(5)        The board of directors shall require compliance with laws and policies relating to the education of children with disabilities. The school is subject to and shall comply with Article 9 of Chapter 115C of the General Statutes and The Individuals with Disabilities Education Improvements Act, 20 U.S.C. § 1400, et seq., (2004), as amended.



(6)        The board of directors shall require that the regional school meet the same health and safety standards required of a local school administrative unit.



(7)        The board of directors shall require the regional school to comply with G.S. 115C‑375.2A and shall provide the school with a supply of emergency epinephrine auto‑injectors necessary to carry out the provisions of that section.



(8)        The regional school shall comply with the requirements for public school units in Part 2 of Article 8C of this Chapter.



(9)        The regional school shall implement the rule addressing student awareness of child abuse and neglect, including sexual abuse, adopted by the State Board of Education under G.S. 115C‑12(47).



(10)      The board of directors shall apply the rules and policies established by the State Board of Education for issuance of driving eligibility certificates.



(11)      The regional school shall comply with G.S. 115C‑407.40 regarding cultural expression at all graduation ceremonies.



(12)      The regional school shall strive to ensure that one hundred percent (100%) muscadine grape juice is made available to students as a part of the school's nutrition program or through the operation of the school's vending facilities.



(13)      If the regional school organizes athletic teams for middle or high school students to participate in interscholastic or intramural athletic activities, those teams shall be organized in accordance with G.S. 115C‑12(23).



(14)      The board of directors shall comply with the purchasing and contract statutes and regulations applicable to local school administrative units.



(15)      The board of directors shall be exempt from Chapter 150B of the General Statutes, except final decisions of the board of directors in a contested case shall be subject to judicial review in accordance with Article 4 of Chapter 150B of the General Statutes.



(16)      The regional school shall ensure that the report card issued for it by the State Board of Education receives wide distribution to the local press or is otherwise provided to the public. A regional school shall ensure that the overall school performance score and grade earned by the regional school for the current and previous four school years is prominently displayed on the school website. If a regional school earned an overall school performance grade of D or F, the regional school shall provide notice of the grade in writing to the parent or guardian of all students enrolled in that school.



(17)      The board of directors is encouraged to adopt a policy against bullying or harassing behavior, including cyber‑bullying, for the regional school that is consistent with the provisions of Article 29C of this Chapter. If the board of directors adopts a policy to prohibit bullying and harassing behavior, the regional school shall, at the beginning of each school year, provide the policy to staff, students, and parents as defined in G.S. 115C‑390.1(b)(8).



(18)      The regional school is encouraged to facilitate access for students to participate in activities provided by any youth group listed in Title 36 of the United States Code as a patriotic society, such as the Boy Scouts of America, and its affiliated North Carolina groups and councils, and the Girl Scouts of the United States of America, and its affiliated North Carolina groups and councils. Student participation in any activities offered by these organizations shall not interfere with instructional time during the school day for the purposes of encouraging civic education.



(19)      The board of directors shall comply with the requirements of G.S. 115C‑523.1 and G.S. 115C‑523.2 for any regional school building owned by the board of directors.



(20)      The board of directors shall adopt and implement a child sexual abuse and sex trafficking training program in accordance with G.S. 115C‑375.20.



(21)      The regional school shall adopt a school‑based mental health plan, including a mental health training program and suicide risk referral protocol, in accordance with G.S. 115C‑376.5.



(22)      The regional school shall annually report the information required by G.S. 115C‑12(48) to the State Board of Education, the Senate Appropriations Committee on Education/Higher Education, and the House Appropriations Committee on Education no later than September 15.



(23)      The regional school shall annually update information to the digital learning dashboard, as required by G.S. 115C‑102.9.



(24)      The board of directors shall develop a plan to provide transportation to the students enrolled in the regional school, which may include entering into interlocal agreements with local school administrative units.



(25)      The board of directors, to the extent practicable, shall provide school food services to the regional school. School food services may be provided by entering into an interlocal agreement with a local school administrative unit. For purposes of federal funding through the National School Lunch Program or other federally supported food service programs, a local school administrative unit that has entered into an interlocal agreement with the regional school for the purpose of providing school food services shall be permitted to include eligible students enrolled in the regional school.



§ 115C‑229.40.  Student admissions and assignment.



(a)        The regional school may serve grades seven through 12.



(b)        A student domiciled in a county within the regional school service area is eligible to attend the regional school. A student's eligibility to remain enrolled in the regional school shall terminate at the end of any school year during which a student ceases to satisfy the residency requirements.



(c)        The board of directors shall establish criteria, standards, and procedures for admission of students. The admission criteria may give priority to students with no parent that has completed a two‑ or four‑year degree and shall include the following:



(1)        Demonstrated academic achievement.



(2)        Demonstrated student interest in attendance.



(3)        Documented parental support for student attendance.



(d)       If the number of eligible students meeting the board of directors' admission criteria exceeds the seats available, students shall be accepted by lot.



§ 115C‑229.45.  Employees.



The board of directors shall appoint all certified and noncertified staff.



(1)        The board of directors shall employ and contract with a principal for a term not to exceed three years. The principal shall meet the requirements for certification set out in G.S. 115C‑284, unless waived by the State Board of Education upon submission of a request by the board of directors. The principal shall be responsible for school operations and shall exercise those duties and powers delegated by the board of directors.



(2)        The board of directors shall employ and contract with necessary teachers to perform the particular service for which they are employed in the school. At least fifty percent (50%) of teachers employed by the board of directors shall hold teacher licensure, unless waived by the State Board of Education upon submission of a request by the board of directors.



(3)        If a teacher employed by a local school administrative unit makes a written request for a leave of absence to teach at the regional school, the local school administrative unit shall grant the leave for one year. For the initial year of the regional school's operation, the local school administrative unit may require that the request for a leave of absence be made up to 45 days before the teacher would otherwise have to report for duty. After the initial year of the regional school's operation, the local school administrative unit may require that the request for a leave of absence be made up to 90 days before the teacher would otherwise have to report for duty. A local board of education is not required to grant a request for a leave of absence or a request to extend or renew a leave of absence for a teacher who previously has received a leave of absence from that school board under this subdivision. A teacher who has received a leave of absence to teach at a regional school may return to a public school in the local school administrative unit at the end of the leave of absence or upon the end of employment at the regional school if an appropriate position is available. If a teacher has career status under G.S. 115C‑325 prior to receiving a leave of absence to teach at the regional school, the teacher may return to a public school in the local school administrative unit with career status at the end of the leave of absence or upon the end of employment at the regional school if an appropriate position is available. If an appropriate position is unavailable, the teacher's name shall be placed on a list of available teachers in accordance with G.S. 115C‑325(e)(2).



(4)        The board of directors also may employ necessary employees who are not required to hold teacher licensure to perform duties other than teaching and may contract for other services.



(5)        An employee of the board of directors is not an employee of the local school administrative unit in which the regional school is located. The board of directors may discharge certified and noncertified employees according to the terms of the employment contract.



(6)        Employees of the board of directors shall participate in the Teachers' and State Employees' Retirement System and the State Health Plan on the same terms as employees employed by local boards of education.



(7)        Employees of the board of directors shall be exempt from Chapter 126 of the General Statutes, except for Articles 6 and 7 and G.S. 126‑8.6.



(8)        Teachers employed by the board of directors shall be eligible for paid parental leave as provided in G.S. 126‑8.6. The board of directors shall be eligible to receive funds as provided in G.S. 115C‑336.1(b).



§ 115C‑229.50.  Criminal history record checks.



(a)        As used in this section:



(1)        Criminal history means a county, state, or federal criminal history of conviction of a crime, whether a misdemeanor or a felony, that indicates an individual (i) poses a threat to the physical safety of students or personnel or (ii) has demonstrated that he or she does not have the integrity or honesty to fulfill his or her duties as school personnel. These crimes include the following North Carolina crimes contained in any of the following Articles of Chapter 14 of the General Statutes: Article 5A, Endangering Executive and Legislative, and Court Officers; Article 6, Homicide; Article 7B, Rape and Other Sex Offenses; Article 8, Assaults; Article 10, Kidnapping and Abduction; Article 13, Malicious Injury or Damage by Use of Explosive or Incendiary Device or Material; Article 14, Burglary and Other Housebreakings; Article 15, Arson and Other Burnings; Article 16, Larceny; Article 17, Robbery; Article 18, Embezzlement; Article 19, False Pretense and Cheats; Article 19A, Obtaining Property or Services by False or Fraudulent Use of Credit Device or Other Means; Article 20, Frauds; Article 21, Forgery; Article 26, Offenses Against Public Morality and Decency; Article 26A, Adult Establishments; Article 27, Prostitution; Article 28, Perjury; Article 29, Bribery; Article 31, Misconduct in Public Office; Article 35, Offenses Against the Public Peace; Article 36A, Riots and Civil Disorders; Article 39, Protection of Minors; and Article 60, Computer‑Related Crime. These crimes also include possession or sale of drugs in violation of the North Carolina Controlled Substances Act, Article 5 of Chapter 90 of the General Statutes, and alcohol‑related offenses such as sale to underage persons in violation of G.S. 18B‑302 or driving while impaired in violation of G.S. 20‑138.1 through G.S. 20‑138.5. In addition to the North Carolina crimes listed in this subdivision, such crimes also include similar crimes under federal law or under the laws of other states.



(2)        School personnel means any of the following:



a.         Member of the board of directors.



b.         Employee of the regional school.



c.         Independent contractor or employee of an independent contractor of the regional school if the independent contractor carries out duties customarily performed by school personnel, whether paid with federal, State, local, or other funds, who has significant access to students or who has responsibility for the fiscal management of the regional school.



(b)        The board of directors shall adopt a policy on whether and under what circumstances school personnel shall be required to be checked for a criminal history. The board of directors shall apply its policy uniformly in requiring school personnel to be checked for a criminal history. The board of directors may grant conditional approval of an application while the board of directors is checking a person's criminal history and making a decision based on the results of the check. The board of directors shall not require school personnel to pay for the criminal history record check authorized under this section.



(c)        The board of directors shall require the person to be checked by the State Bureau of Investigation (i) to be fingerprinted and to provide any additional information required by the State Bureau of Investigation to a person designated by the board of directors or to the local sheriff or the municipal police, whichever is more convenient for the person, and (ii) to sign a form consenting to the check of the criminal record and to the use of fingerprints and other identifying information required by the repositories. The board of directors shall consider refusal to consent when making employment decisions and decisions with regard to independent contractors. The State Bureau of Investigation shall use the fingerprints to conduct a search of the State criminal history record file, and the State Bureau of Investigation shall forward the set of fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The State Bureau of Investigation shall provide to the board of directors the criminal history from the State and National Repositories of Criminal Histories of any school personnel for which the board of directors requires a criminal history record check. The board of directors shall not require school personnel to pay for the fingerprints authorized under this section.



(d)       The board of directors shall review the criminal history it receives on an individual. The board of directors shall determine whether the results of the review indicate that the individual (i) poses a threat to the physical safety of students or personnel or (ii) has demonstrated that he or she does not have the integrity or honesty to fulfill his or her duties as school personnel and shall use the information when making employment decisions and decisions with regard to independent contractors. The board of directors shall make written findings with regard to how it used the information when making employment decisions and decisions with regard to independent contractors. The board of directors may delegate any of the duties in this subsection to the principal.



(e)        The board of directors, or the principal if designated by the board of directors, shall provide to the State Board of Education the criminal history it receives on a person who is certificated, certified, or licensed by the State Board of Education. The State Board of Education shall review the criminal history and determine whether the person's certificate or license should be revoked in accordance with State laws and rules regarding revocation.



(f)        All the information received by the board of directors through the checking of the criminal history or by the State Board of Education in accordance with this section is privileged information and is not a public record but is for the exclusive use of the board of directors or the State Board of Education. The board of directors or the State Board of Education may destroy the information after it is used for the purposes authorized by this section after one calendar year.



(g)        There shall be no liability for negligence on the part of the board of directors, or its employees, or the State Board of Education, the Superintendent of Public Instruction, or any of their members or employees, individually or collectively, arising from any act taken or omission by any of them in carrying out the provisions of this section. The immunity established by this subsection shall not extend to gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable. The immunity established by this subsection shall be deemed to have been waived to the extent of indemnification by insurance, indemnification under Articles 31A and 31B of Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes.



(h)        Any applicant for employment who willfully furnishes, supplies, or otherwise gives false information on an employment application that is the basis for a criminal history record check under this section shall be guilty of a Class A1 misdemeanor.



(i)         The board of directors may adopt a policy providing for uniform periodic checks of criminal history of employees. Boards of directors shall not require employees to pay for the criminal history check authorized under this subsection. A board of directors shall indicate, upon inquiry by any other local board of education, charter school, or regional school in the State as to the reason for an employee's resignation or dismissal. If a teacher's criminal history is relevant to a teacher's resignation, the board of directors shall report to the State Board of Education the reason for an employee's resignation.



§ 115C‑229.55.  Finance and budget.



(a)        The board of directors shall have all the rights, duties, and obligations for receipt, accounting, and dispersing of funds for the school, including all the rights, duties, and obligations specified in Article 31 of this Chapter. The board may contract with a local school administrative unit to serve as the finance agent for the board and shall provide reasonable compensation to the local school administrative unit for this service. Upon such agreement, that local school administrative unit shall act as agent for the board in all receipt, accounting, and dispersing functions, but the board shall retain liability for compliance with Article 31 of this Chapter.



(b)        A regional school may request appropriations directly from a city, as authorized by G.S. 160A‑700.



(c)        With respect to the receipt, deposit, and disbursement of moneys (i) required by law to be deposited with the State Treasurer or (ii) made available for expenditure by warrants drawn on the State Treasurer, regional schools are subject to Article 6A of Chapter 147 of the General Statutes.



(d)       The State Board of Education shall allocate to the regional school:



(1)        An amount equal to the average per pupil allocation for average daily membership from the local school administrative unit allotments in which the regional school is located for each child attending the regional school except for the allocation for children with disabilities and for the allocation for children with limited English proficiency.



(2)        An additional amount for each child attending the regional school who is a child with disabilities. In the event a child with disabilities leaves the regional school and enrolls in a local school administrative unit during the first 60 school days in the school year, the regional school shall return a pro rata amount of funds allocated for that child to the State Board, and the State Board shall reallocate those funds to the local school administrative unit in which the public school is located. In the event a child with disabilities enrolls in a regional school during the first 60 school days in the school year, the State Board shall allocate to the regional school the pro rata amount of additional funds for children with disabilities.



(3)        An additional amount for children with limited English proficiency attending the regional school, based on a formula adopted by the State Board.



(4)        An additional amount equal to the average per pupil share of the local current expense fund of all of the local school administrative units in the regional school service area for the prior fiscal year.



SECTION 7.25.(b)  G.S. 14‑458.2(a) reads as rewritten:



(a)      The following definitions apply in this section:



(1)        School employee. – The term means any of the following:



a.         An employee of a local board of education, a charter school authorized under G.S. 115C‑218.5, a regional school created under G.S. 115C‑238.62, the regional school established by G.S. 115C‑229.5, a laboratory school created under G.S. 116‑239.7, or a nonpublic school which has filed intent to operate under Part 1 or Part 2 of Article 39 of Chapter 115C of the General Statutes.



b.         An independent contractor or an employee of an independent contractor of a local board of education, a charter school authorized under G.S. 115C‑218.5, a regional school created under G.S. 115C‑238.62, the regional school established by G.S. 115C‑229.5, a laboratory school created under G.S. 116‑239.7, or a nonpublic school which has filed intent to operate under Part 1 or Part 2 of Article 39 of Chapter 115C of the General Statutes, if the independent contractor carries out duties customarily performed by employees of the school.



(2)        Student. – A person who has been assigned to a school by a local board of education as provided in G.S. 115C‑366 or has enrolled in a charter school authorized under G.S. 115C‑218.5, a regional school created under G.S. 115C‑238.62, the regional school established by G.S. 115C‑229.5, a laboratory school created under G.S. 116‑239.7, or a nonpublic school which has filed intent to operate under Part 1 or Part 2 of Article 39 of Chapter 115C of the General Statutes, or a person who has been suspended or expelled from any of those schools within the last year.



SECTION 7.25.(c)  G.S. 58‑31A‑1(2) reads as rewritten:



(2)      Public education board. – A local board of education of a local school administrative unit, as defined in G.S. 115C‑5(5), a board of trustees of a regional school, as defined in G.S. 115C‑238.63, the board of directors of the regional school established by G.S. 115C‑229.5, or a board of trustees of a community college, as defined in G.S. 115D‑12.



SECTION 7.25.(d)  G.S. 115B‑2(a)(6) reads as rewritten:



(6)      Any child enrolled in a regional school established pursuant to Part 10 of Article 16 Article 15A of Chapter 115C of the General Statutes who enrolls in classes at a constituent institution or community college which has a written agreement with the regional school.



SECTION 7.25.(e)  G.S. 115C‑238.50A(1a)c. reads as rewritten:



c.        It is located on the campus of the partner institution of higher education, unless the governing Board or the local board of trustees for a private North Carolina college specifically waives the requirement through adoption of a formal resolution. This criterion shall not apply to a regional school established as provided in Part 10 of this Article.Article 15A of this Chapter.



SECTION 7.25.(f)  Part 10 of Article 16 of Chapter 115C of the General Statutes is repealed.



SECTION 7.25.(g)  G.S. 126‑5(c1)(8a) reads as rewritten:



(8a)    Employees of a regional school established pursuant to Part 10 of Article 16 Article 15A of Chapter 115C of the General Statutes.



SECTION 7.25.(h)  G.S. 143B‑931(b) reads as rewritten:



(b)      The Department of Public Safety may provide a criminal history record check to the board of directors of a regional school of a person who is employed at a the regional school or of a person who has applied for employment at a the regional school if the employee or applicant consents to the record check. The In accordance with G.S. 115C‑229.50, the Department may also provide a criminal history record check of school personnel as defined in G.S. 115C‑238.73 by fingerprint card to the board of directors of the regional school from the National Repositories of Criminal Histories, in accordance with G.S. 115C‑238.73. The and the information shall be kept confidential by the board of directors of the regional school as provided in G.S. 115C‑238.73.school.



SECTION 7.25.(i)  G.S. 160A‑700(d)(5) reads as rewritten:



(5)      A regional school created under Part 10 of Article 16 established by Article 15A of Chapter 115C of the General Statutes.



SECTION 7.25.(j)  Notwithstanding G.S. 115C‑229.15, as enacted by this section, the terms of members serving on the board of directors as of the date this act becomes law shall terminate on June 30, 2025. Initial appointments to the board of directors in accordance with G.S. 115C‑229.15 shall be made for terms beginning July 1, 2025. The Superintendent of Public Instruction shall appoint two members to two‑year terms and one member to a four‑year term beginning July 1, 2025. The State Board of Education shall appoint two members to two‑year terms and three members to four‑year terms beginning July 1, 2025. Thereafter, all appointees shall serve four‑year terms.



SECTION 7.25.(k)  The title to and ownership of all property of the Northeast Regional School of Biotechnology and Agriscience, established as provided in Part 10 of Article 16 of Chapter 115C of the General Statutes, both real and personal of every kind and description, shall be vested in the Northeast Regional School of Biotechnology and Agriscience as established by Article 15A of Chapter 115C of the General Statutes, as enacted by this act, by July 1, 2024. All claims and demands of every kind related to the Northeast Regional School of Biotechnology and Agriscience, established as provided in Part 10 of Article 16 of Chapter 115C of the General Statutes, shall pass and be transferred to the Northeast Regional School of Biotechnology and Agriscience as established by Article 15A of Chapter 115C of the General Statutes, as enacted by this act by July 1, 2024, and the board of directors of the Northeast Regional School of Biotechnology and Agriscience shall have the same powers and authority to enforce said claims and demands. Any obligations and liabilities related to the Northeast Regional School of Biotechnology and Agriscience, established as provided in Part 10 of Article 16 of Chapter 115C of the General Statutes, shall become the obligations of the Northeast Regional School of Biotechnology and Agriscience as established by Article 15A of Chapter 115C of the General Statutes, as enacted by this act by July 1, 2024, and such obligations and liabilities may be enforced against the board of directors of the Northeast Regional School of Biotechnology and Agriscience thereafter to the same extent that they might have otherwise been enforced.



SECTION 7.25.(l)  Subsections (a) through (i) of this section are effective July 1, 2024. The remainder of this section is effective when it becomes law.



 



ADMINISTRATIVE CHANGES TO DRIVER EDUCATION PROGRAM, INCLUDING CREATION OF A FLEET FUND



SECTION 7.26.(a)  Article 2 of Chapter 20 of the General Statutes is amended by adding a new section to read:



§ 20‑11.3.  Driver education program for public school units.



(a)        The Division, in consultation with the State Highway Patrol, the North Carolina Sheriffs' Association, the North Carolina Association of Chiefs of Police, and the State Board of Education, shall develop a standardized program of driver education to be administered by public school units at the public high schools of this State for the purpose of making available public education to all students on driver safety and training.



(b)        The driver education curriculum shall include the following:



(1)        Instruction on the rights and privileges of the handicapped and the signs and symbols used to assist the handicapped relative to motor vehicles, including the international symbol of accessibility and other symbols and devices as provided in Article 2A of this Chapter.



(2)        At least six hours of instruction on the offense of driving while impaired and related subjects.



(3)        At least six hours of actual driving experience. To the extent practicable, this experience may include at least one hour of instruction on the techniques of defensive driving.



(4)        At least one hour of motorcycle safety awareness training.



(5)        Instruction on all topics identified in G.S. 20‑88.1.



(c)        The Division, in consultation with the State Board of Education, shall develop goals and performance indicators for the program, including the number of participants as compared to the number of persons projected to be eligible to participate in the program, the implementation of a standard curriculum for the program, expenditures for the program, and the success rate of program participants in receiving a drivers license.



(d)       The Division shall provide initial training to public school driver education instructors as part of the State Board of Education certification process for instructors adopted pursuant to G.S. 115C‑215(e1). The Division may charge a public school unit for initial instructor training, but the charge shall not exceed the actual cost of providing the training.



(e)        The Division may develop literature, study guides, worksheets, or any other aids to assist instructors in facilitating the driver education program. The Division may charge for any supplies provided, but the charge shall not exceed the actual cost of producing the materials.



SECTION 7.26.(b)  G.S. 115C‑215 reads as rewritten:



§ 115C‑215.  Administration of driver education program by the Department of Public Instruction.



(a)        In accordance with criteria and standards approved rules adopted by the State Board of Education, the State Superintendent of Public Instruction shall organize and administer a the standardized program of driver education to be offered program developed by the Department of Transportation, Division of Motor Vehicles, pursuant to G.S. 20‑11.3, at the public high schools of this State for all physically and mentally qualified persons who (i) are older than 14 years and six months, (ii) are approved by the principal of the school, pursuant to rules adopted by the State Board of Education, (iii) are enrolled in a public or private high school within the State or are receiving instruction through a home school as provided by Part 3 of Article 39 of Chapter 115C of the General Statutes, and (iv) have not previously enrolled in the program. The driver education program shall be for the purpose of making available public education to all students on driver safety and training. State. The State Board of Education shall use for this purpose all funds appropriated pursuant to subsection (f) of this section to the Department of Public Instruction and may use all other funds that become available for its use for this purpose.



(a1)      A student is eligible to enroll in the driver education program if the student meets all of the following conditions:



(1)        Is physically and mentally capable of operating a motor vehicle.



(2)        Is older than 14 years and 6 months.



(3)        The principal, or equivalent, has approved the student to participate in the course pursuant to the rules for participation adopted by the State Board of Education.



(4)        Attends a high school in a public school unit, an academic program under Part 1, Part 2, or Part 3 of Article 39 of Chapter 115C of the General Statutes, or an educational program operated by an agency of the State.



(5)        Has not previously enrolled in the program.



(b)        The driver education curriculum shall include the following:



(1)        Instruction on the rights and privileges of the handicapped and the signs and symbols used to assist the handicapped relative to motor vehicles, including the international symbol of accessibility and other symbols and devices as provided in Article 2A of Chapter 20 of the General Statutes.



(2)        At least six hours of instruction on the offense of driving while impaired and related subjects.



(3)        At least six hours of actual driving experience. To the extent practicable, this experience may include at least one hour of instruction on the techniques of defensive driving.



(4)        At least one hour of motorcycle safety awareness training.



(5)        Instruction on law enforcement procedures for traffic stops that is developed in consultation with the State Highway Patrol, the North Carolina Sheriff's Association, and the North Carolina Association of Chiefs of Police. The instruction shall provide a description of the actions that a motorist should take during a traffic stop, including appropriate interactions with law enforcement officers.



(c)        The State Board of Education shall establish and implement a strategic plan for the driver education program. At a minimum, the strategic plan shall consist of goals and performance indicators, including the number of program participants as compared to the number of persons projected to be eligible to participate in the program, the implementation of a standard curriculum for the program, expenditures for the program, and the success rate of program participants in receiving a drivers license as reported by the Division of Motor Vehicles. The strategic plan shall also outline specific roles and duties of an advisory committee consisting of employees of the Division of Motor Vehicles and the Department of Public Instruction and other stakeholders in driver education.



(c1)      If a local school administrative unit does not comply with any reporting requirements imposed on the unit for the purposes of implementing the strategic plan program established by the State Board of Education pursuant to subsection (c) of this section, Division of Motor Vehicles under G.S. 20‑11.3, the Department of Public Instruction may withhold up to five percent (5%) of the State funds allocated to a local school administrative unit for driver education until the unit reports the information required by the Department.Division.



(d)       The State Board of Education shall adopt a salary range for the delivery of driver education courses by driver education instructors who are public school employees. The salary range shall be based on the driver education instructor's qualifications, certification, and licensure specific to driver education.



(e)        The State Board of Education shall adopt rules to permit local boards of education to enter contracts with public or private entities to provide a program of driver education at public high schools.



(e1)      All driver education instructors shall meet the requirements established by the The State Board of Education; provided, however, Education shall set the requirements to become a certified public school driver education instructor. At a minimum, instructors shall be required to attend driver instructor training with the Division of Motor Vehicles. The Board may add additional requirements beyond the initial training, however, instructors shall not be required to hold teacher certificates.



(f)        The clear proceeds of the newly established motor vehicle registration late fee charged pursuant to G.S. 20‑88.03, as enacted by S.L. 2015‑241, G.S. 20‑88.03 shall be used to provide a dedicated source of revenue for the drivers education program administered by the Department of Public Instruction in accordance with this section and shall be appropriated by the General Assembly for this purpose for the 2016‑2017 fiscal year and subsequent fiscal years thereafter.each fiscal year.



(g)        Of the funds appropriated to the Department of Public Instruction each fiscal year pursuant to subsection (f) of this section, the Department may use up to one hundred sixty‑four thousand six hundred ninety dollars ($164,690), as adjusted to reflect legislative salary increments, retirement rate adjustments, and health benefit adjustments, for the direct costs for the statewide administration of the program, including any necessary positions.



SECTION 7.26.(c)  G.S. 115C‑216 reads as rewritten:



§ 115C‑216.  Boards of education required to provide courses in operation of motor vehicles.



(a)        Course of Training and Instruction Required in Public High Schools. – Local boards of education shall offer noncredit driver education courses in high schools using the standardized curriculum provided by the Department of Public Instruction.developed by the Department of Transportation, Division of Motor Vehicles.



….



SECTION 7.26.(d)  Article 14 of Chapter 115C of the General Statutes is amended by adding a new section to read:



§ 115C‑216.5.  Funds for Driver Education Fleet.



(a)        There is established the Driver Education Fleet funding allotment within the State Public School Fund. This allotment shall be a nonreverting allotment consisting of any moneys appropriated to it by the General Assembly and any moneys appropriated to the Driver Education allotment that are not expended by June 30 of the fiscal year.



(b)        The State Board of Education shall establish the purposes for which the funds within the new Driver Education Fleet funding allotment may be used for as the purchase and maintenance of vehicles to be used for driver education.



SECTION 7.26.(e)  G.S. 20‑7(m)(1a) reads as rewritten:



(1a)    A driver training instructor qualified under G.S. 115C‑215(e) G.S. 115C‑215 or G.S. 20‑323(b) may administer any vision test or examination of physical condition required for the issuance of a restricted instruction permit to an applicant under this section. The examining instructor may also provide any signature required by the Division to verify the results of the vision test and examination of physical condition.



SECTION 7.26.(f)  G.S. 20‑322(b) reads as rewritten:



(b)      Regulations adopted by the Commissioner shall state the requirements for a school license, including requirements concerning location, equipment, courses of instruction, instructors, financial statements, schedule of fees and charges, character and reputation of the operators, insurance, bond or other security in such sum and with such provisions as the Commissioner deems necessary to protect adequately the interests of the public, and such other matters as the Commissioner may prescribe. A driver education course offered to prepare an individual for a limited learner's permit or another provisional license must meet the requirements set in G.S. 115C‑215 G.S. 20‑11.3 for the program of driver education offered in the public schools.



SECTION 7.26.(g)  As part of the certification of the budget for the 2024‑2025 fiscal year, the Department of Public Instruction shall transfer to the Department of Transportation to be assigned to the Division of Motor Vehicles to develop the driver education program as required under G.S. 20‑11.3, as enacted by this section, one full‑time equivalent position for the Director of the Driver Education Program, position number 65027737.



 



CLARIFY ROLE OF CHARTER SCHOOL REVIEW BOARD



SECTION 7.27.(a)  G.S. 115C‑218 reads as rewritten:



§ 115C‑218.  Purpose of charter schools; role of State Board of Education; establishment of North Carolina Charter Schools Review Board and North Carolina Office of Charter Schools.



…



(a1)      State Board of Education. – The State Board of Education shall have the following duties regarding charter schools:



(1)        Rulemaking. – To establish all rules for the operation and approval of charter schools. Any rule adopted by the State Board regarding charter schools shall first be approved and recommended by the Charter Schools Review Board.



(2)        Funding. – To allocate funds to charter schools.



(3)        Appeals. – To hear appeals from decisions of the Charter Schools Review Board under G.S. 115C‑218.9.



(4)        Accountability. – To ensure accountability from charter schools for school finances and student performance.



(b)        North Carolina Charter Schools Review Board. –



…



(10)      Powers and duties. – The Review Board shall have the following duties:



a.         To make recommendations to the State Board of Education on the adoption of propose, recommend, and approve rules to the State Board of Education regarding all aspects of charter school operation, including time lines, standards, and criteria for acceptance and approval of applications, monitoring of charter schools, and grounds for revocation of charters.



b.         To review and approve or deny charter applications, renewals, and revocations.revocations, and terminations.



c.         To make recommendations to the State Board on actions before the State Board on appeal under G.S. 115C‑218.9.



d.         To undertake any other duties and responsibilities as assigned by the State Board.



e.         To review any decisions or conduct any hearings pursuant to 20 U.S.C. § 1231b‑2 concerning the provision, repayment, or termination of funds provided to a charter school.



f.          To contract for and employ legal counsel, including private counsel, to advise, represent, and provide litigation services to the Review Board, without need to obtain permission or approval pursuant to G.S. 114‑2.3 or G.S. 147‑17.



…



(c)        North Carolina Office of Charter Schools. –



…



(2)        Executive Director. – The Executive Director shall report to and serve at the pleasure of the Superintendent of Public Instruction Review Board at a salary established by the Superintendent Review Board within the funds appropriated for this purpose. The duties of the Executive Director shall include presenting the recommendations and decisions of the Review Board at meetings of the State Board.



….



SECTION 7.27.(b)  G.S. 115C‑218.105 reads as rewritten:



§ 115C‑218.105.  State and local funds for a charter school.



…



(a2)      The State Board shall may withhold or reduce distribution of funds to a charter school if any of the following applies:



(1)        The change in funding is due to an annual adjustment based on enrollment or is a general adjustment to allocations that is not specific to the charter or actions of that charter school.



(2)        The Review Board notifies the State Board that the charter school has materially violated a term of its charter, has violated a State statute or federal law, or has had its charter terminated or nonrenewed.



(3)        The Superintendent of Public Instruction Review Board notifies the State Board that the charter school has failed to meet generally accepted standards of fiscal management or has violated a State or federal requirement for receipt of funds.



(c2)      The Superintendent of Public Instruction Review Board shall, in consultation with charter schools and local school administrative units, create a standardized enrollment verification and transfer request document that each charter school shall use to request the per pupil share of the local current expense fund from the local school administrative units. Charter schools shall only be required to list the name, age, grade, address, date of charter enrollment, date of charter withdrawal, district of residence, and student identification number of each student as provided to the charter school by the student's parent or guardian in the enrollment verification and transfer request document that the charter school submits to the local school administrative units. A charter school, in its discretion, may take further steps to confirm the student's residence in a particular local school administrative unit.



(c3)      The Superintendent of Public Instruction Review Board shall, in consultation with charter schools and local school administrative units, create a standardized procedure that local school administrative units shall use when transferring the per pupil share of the local current expense fund to charter schools. The standardized procedure for transfer of the per pupil share of the local current expense fund shall require, to the extent practicable, that the local school administrative units make the transfers by electronic transfer.



….



SECTION 7.27.(c)  G.S. 115C‑218.9 reads a rewritten:



§ 115C‑218.9.  Appeals to the State Board of Education.



(a)        An applicant, charter school, or the State Superintendent applicant or charter school may appeal a final decision of the Review Board to grant, renew, revoke, or amend a charter by submitting notice to the Chair of the State Board of Education within 10 days of the Review Board's decision. Copies of the notice shall be sent to the Executive Director of the Office of Charter Schools, State Superintendent, the Chair of the Review Board, and the applicant or charter school affected.



….



 



REPORTING REQUIREMENT, EXCEPTION EXTENSION, and supplement clarification FOR ADVANCED TEACHING ROLES



SECTION 7.28.(a)  G.S. 115C‑311 reads as rewritten:



§ 115C‑311.  Teacher compensation models and advanced teaching roles.



…



(f)        Renewal and Termination of Program Participation. – The initial selected local school administrative units shall implement their approved plans beginning with the 2021‑2022 school year. Every five years after a local school administrative unit begins implementing its plan, the State Board of Education shall review the unit to ensure the unit is complying with the approved plan. As part of the review, the State Board shall consider at least the following information:



(1)        The total number of teachers in advanced teaching roles in the unit unit, the number of teachers in each advanced teaching role, and the number of students receiving instruction from those teachers.



(1a)      For each school in the advanced teaching role unit, the total number of teachers in advanced teaching roles in the school, the number of teachers in each advanced teaching role, and the number of students receiving instruction from those teachers.



(2)        Growth scores for students calculated pursuant to G.S. 115C‑83.15.



(3)        Achievement scores for students calculated pursuant to G.S. 115C‑83.15.



(4)        Retention of effective teachers.



(5)        Results of the Teacher Working Conditions Survey.



(6)        Ratings of teachers through the North Carolina Teacher Evaluation System.



(7)        Evidence that higher performing teachers have been selected to serve in an advanced teaching role.



(8)        A description of the activities undertaken by teachers in advanced teaching roles that lead other teachers to (i) support the professional development of teachers on their team and (ii) enhance instruction by better aligning teachers' strengths with student needs.



(9)        The amount and funding source for any salary supplement received by advanced teaching roles teachers in the unit.



(10)      A description of the amount of release time given to each teacher in an advanced teaching role that leads other teachers and how the school facilitates providing that release time.



…



(h1)      The Report. – No later than October 15 of each year, the State Board shall provide any report required in accordance with this subsection the results of any evaluation conducted pursuant to subsection (h) of this section and a copy of the information listed in subsection (f) of this section to the offices of the President Pro Tempore of the Senate and the Speaker of the House of Representatives, the Senate Appropriations/Base Budget Committee, the House Committee on Appropriations, 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.



(i)         Class Size Flexibility. – Notwithstanding G.S. 115C‑301, with the approval of the State Board of Education, Advanced Teaching Roles schools selected to participate in the program may exceed the maximum class size requirements for kindergarten through third grade during any term of up to three years in which State funds are awarded to the local school administrative unit where the school is located. At the conclusion of the term, any class size flexibility approved for an Advanced Teaching Roles school pursuant to this subsection shall expire.until June 30, 2026.



….



SECTION 7.28.(b)  G.S. 115C‑312 reads as rewritten:



§ 115C‑312.  Salary supplements for teachers in Advanced Teaching Roles schools.



…



(b)        Notwithstanding G.S. 115C‑311, to the extent funds are made available for this purpose, the State Board of Education shall award funds to local school administrative units for annual salary supplements for teachers in accordance with this section. Advanced Teaching Roles units shall may designate up to fifteen percent (15%) of the teachers in each Advanced Teaching Roles school as adult leadership teachers and five percent (5%) of the teachers in each Advanced Teaching Roles school as classroom excellence teachers. Advanced Teaching Roles units shall provide To the extent funds are made available for the purpose, teachers serving in an advanced teaching role, as defined by this section, are eligible to receive salary supplements for those teachers as follows:



(1)        Ten thousand dollars ($10,000) for adult leadership teachers.



(2)        Three thousand dollars ($3,000) for classroom excellence teachers.



(b1)      Notwithstanding G.S. 115C‑311, to the extent funds are made available for this purpose, the State Board of Education shall award funds to Advanced Teaching Roles units for annual salary supplements for teachers and the receiving Advanced Teaching Roles units shall provide the salary supplement to participating teachers in accordance with this section. If State funds are insufficient to cover the full amount of supplement identified in subsection (b) of this section, the State Board of Education and Advanced Teaching Roles unit shall disburse any supplement funds pro rata. If funds have been disbursed pro rata, Advanced Teaching Roles units are encouraged but not required to fund the remainder of the supplement from alternate funding sources.



….



 



ALIGN TEACHER AND PRINCIPAL OF THE YEAR ADVISORY TERMS



SECTION 7.29.  G.S. 115C‑11(a4) reads as rewritten:



(a4)    State Principal of the Year Advisor. – Each State Principal of the Year, as designated by the Department of Public Instruction, shall serve ex officio as an advisor to the State Board of Education. Each State Principal of the Year shall begin service as an advisory member to the State Board at the commencement of the principal's term as State Principal of the Year and shall serve for one year. two years. The State Principal of the Year shall participate in State Board deliberations and committee meetings in an advisory capacity only. The State Board may, in its discretion, exclude the State Principal of the Year from executive sessions.



In the event a vacancy occurs in the State Principal of the Year's advisory position, the principal who was next runner‑up to that State Principal of the Year shall serve as the advisory member to the State Board for the remainder of the unexpired term. The State Principal of the Year advisor to the State Board shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5.



 



diabetes education for parents



SECTION 7.30.  G.S. 115C‑375.3 reads as rewritten:



§ 115C‑375.3.  Guidelines to support and assist students with diabetes.



(a)        Local boards of education and boards of directors of charter schools Governing bodies of public school units shall ensure that the guidelines adopted by the State Board of Education under G.S. 115C‑12(31) are implemented in schools in which students with diabetes are enrolled. In particular, the boards shall require the implementation of the procedures set forth in those guidelines for the development and implementation of individual diabetes care plans. The boards also shall make available necessary information and staff development to teachers and school personnel in order to appropriately support and assist students with diabetes in accordance with their individual diabetes care plans.



(b)        Governing bodies of public school units shall ensure that each school provides parents and legal guardians with information about type 1 and type 2 diabetes at the beginning of every school year. This information shall include all of the following:



(1)        A description of type 1 and type 2 diabetes.



(2)        A description of the risk factors and warning signs associated with type 1 and type 2 diabetes.



(3)        A recommendation that if a student is displaying warning signs associated with diabetes, the parent or guardian of the student consult with the primary care provider of the student to determine if immediate screening for diabetes is appropriate.



(4)        A description of the screening process for and stages of diabetes.



(5)        A recommendation that if a student receives a diabetes diagnosis, the parent or guardian of the student consult with the primary care provider of the student to develop an appropriate treatment plan.



(6)        Notification that the school is required to assist students with diabetes in accordance with the rules adopted by the State Board of Education pursuant to G.S. 115C‑12(31).



 



EXPEDITE OPENINGS OF QUALIFYING CHARTER SCHOOLS



SECTION 7.31.  Notwithstanding G.S. 115C‑218.5, the Charter School Review Board shall not require a planning year and shall authorize a school to open in the 2024‑2025 school year for a charter granted to a charter application submitted in 2024 that meets the following criteria:



(1)        The proposed charter school will be located in a fully furnished school facility purchased from a local board of education prior to submission of the charter application.



(2)        The proposed charter school will be located in a county within the metropolitan statistical area in the State with the largest population, as of the 2020 decennial census.



(3)        The proposed charter school will be located in a county with projected population growth from 2020 to 2030 of more than twenty‑five percent (25%), based on the State Demographer's population projections.



(4)        The proposed charter school will be located in a county with a county local school administrative unit that enrolled fewer than 25,000 students in the 2023‑2024 school year.



 



ALLOW CHARTER SCHOOL SATELLITES WITHIN 10 MILE RADIUS



SECTION 7.32.  G.S. 115C‑218.8 reads as rewritten:



§ 115C‑218.8.  Nonmaterial revisions of charters.



It shall not be considered a material revision of a charter and shall not require prior approval of the Review Board for a charter school to do any of the following:



…



(4)        Expand the campus of a charter school beyond the school's main location and facilities or establish a satellite extension of a charter school, so long as the expansion or satellite location is within a 10‑mile radius of the school's main location. The expansion or satellite location need not be located within the same local school administrative unit as the main location of the charter school.



 



ADD CHARTER SCHOOLS TO TEACHER ASSISTANT TUITION REIMBURSEMENT PROGRAM



SECTION 7.33.(a)  G.S. 115C‑269.31, as enacted by Section 7.44 of S.L. 2023‑134, reads as rewritten:



§ 115C‑269.31.  Teacher Assistant Tuition Reimbursement Grant Program.



(a)        Purpose. – The Department of Public Instruction shall establish the Teacher Assistant Tuition Reimbursement Grant Program (Program). The purpose of the Program is to provide tuition assistance to part‑time or full‑time teacher assistants working in local school administrative units and charter schools to pursue a college degree that will result in teacher licensure.



(b)        Applications; Grant Priority. – Local school administrative units and charter schools may apply to participate in the Program pursuant to a process to be established by the Department of Public Instruction. The application shall identify current and ongoing needs for licensed teachers and the expected number of eligible teacher assistants that would participate in the Program. In evaluating applications, the Department shall prioritize local school administrative units and charter schools according to the following order:



(1)        Local school administrative units that received funds under the Teacher Assistant Tuition Reimbursement Pilot Program established in Section 8.29 of S.L. 2016‑94, as amended by Section 7.20 of S.L. 2017‑57, Section 6(m) of S.L. 2017‑189, and Section 7.21 of S.L. 2018‑5.



(2)        Local school administrative units and charter schools 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.



(3)        All other local school administrative units.units and charter schools.



(c)        Award of Funds. – To the extent funds are made available for the Program, a local school administrative unit or charter school receiving funds under the Program shall provide a teacher assistant participating in the program an award of up to four thousand six hundred dollars ($4,600) per academic year per teacher assistant, up to four academic years to defray the costs of tuition and fees at an educator preparation program at an institution of higher education while employed in the local school administrative unit or charter school as a teacher assistant.



(d)       Additional Criteria. – The following additional criteria shall apply under the Program:



(1)        Tuition assistance awards granted under the Program may be provided for part‑time or full‑time coursework.



(2)        A local board of education or charter school may grant a teacher assistant academic leave to pursue coursework that may only be taken during working hours.



(3)        A teacher assistant shall fulfill the student teaching requirements of an educator preparation program by working as a teacher assistant at his or her employing local school administrative unit.unit or in the charter school.



(4)        A teacher assistant shall continue to receive salary and benefits while student teaching in the local school administrative unit or charter school as provided for teacher assistants in G.S. 115C‑269.30(c).



(e)        Selection of Teacher Assistants. – The Department shall establish criteria for initial and continuing eligibility to participate in the Program. The Department shall adopt standards to ensure that only qualified, potential recipients receive an award of funds for tuition and fees under the Program. The standards shall include satisfactory academic progress toward achieving teacher licensure. Local school administrative units and charter schools receiving grants pursuant to the Program shall select teacher assistants to receive funds under the Program and prioritize teacher assistants who received an award in the prior academic year and who are making satisfactory academic progress towards achieving teacher licensure. The Department of Public Instruction shall set criteria for the application and selection of teacher assistants to receive tuition assistance awards that includes at least the following:



(1)        The teacher assistant shall be employed by the local board of education in the local school administrative unit.unit or in the charter school.



(2)        The teacher assistant shall be enrolled or provide a statement of intent to enroll in an accredited institution of higher education in North Carolina with an educator preparation program approved by the State Board of Education to pursue teacher licensure.



(3)        The teacher assistant qualifies as a resident for tuition purposes under the criteria set forth in G.S. 116‑143.1 and in accordance with the coordinated and centralized residency determination process administered by the State Education Assistance Authority.



(f)        Endorsement of Tuition Assistance Awards for Recipients. – Each local board of education or charter school participating in the Program shall enter into a memorandum of understanding with the institution of higher education in which an award recipient under the Program is enrolled that includes procedures for at least the following:



(1)        Remittance of the award from the local board of education or charter school to the institution of higher education.



(2)        Endorsement of the funds awarded to the recipient to the institution of higher education for deposit into the account of the institution.



(3)        Return of a pro rata share of funds to the local board of education or charter school in the event a recipient (i) withdraws from the institution of higher education prior to the end of a term or (ii) the recipient's employment with the local board of education or in the charter school is terminated. The return of funds shall be consistent with procedures used by the institution under federal Title IV programs.



(g)        Local Report. – No later than September 1 of each school year following at least six months of participation in the Program for that year, local boards of education and charter schools participating in the Program shall report at least the following information to the Department of Public Instruction:



(1)        The number and amount of funds in tuition assistance awards provided to teacher assistants.



(2)        The number of teacher assistant recipients who achieved teacher licensure, including the period of time from the issue of an initial tuition assistance award to the time of achieving licensure.



(3)        The number of recipients who remained employed in the local school administrative unit or charter school after achieving teacher licensure.



(h)        State Report. – No later than December 1, 2024, and annually thereafter for each year funds are awarded pursuant to the Program, the Department of Public Instruction shall aggregate the information provided pursuant to subsection (g) of this section and report that information to the Joint Legislative Education Oversight Committee.



SECTION 7.33.(b)  G.S. 115C‑269.30 reads as rewritten:



§ 115C‑269.30.  Teacher assistants engaged in internships.



(a)        Program for Teacher Assistants. – The State Board shall adopt a program to facilitate the process by which teacher assistants may become teachers. Teacher assistants who participate in this program shall meet the following requirements:



(1)        Be enrolled in a recognized EPP.



(2)        Be employed in a North Carolina public school.public school unit.



(b)        Internship Assignments. – Local school administrative units Public school units are encouraged to assign teacher assistants to a different classroom during an internship than the classroom they are assigned to as a teacher assistant. To the extent possible, they may be assigned to another school within the same local school administrative unit.public school unit.



(c)        Salary and Benefits. – Teacher assistants shall continue to receive their salary and benefits while interning in the same local school administrative unit public school unit where they are employed as a teacher assistant.



(d)       Consultation With Institutions of Higher Education. – The State Board shall consult with the Board of Governors of The University of North Carolina and the North Carolina Independent Colleges and Universities in the development of the program.



SECTION 7.33.(c)  This section applies beginning with the 2024‑2025 school year.



 



ADD FUNDS FOR STEM WEST/REDUCE FUNDS FOR SME PRIME



SECTION 7.34.(a)  Notwithstanding any other provision of law or the Committee Report described in Section 43.2 of this act to the contrary, the nonrecurring funds appropriated in this act to the Department of Public Instruction for the 2024-2025 fiscal year shall be increased by the sum of five hundred thousand dollars ($500,000) to provide as a directed grant to STEM West, Inc. to increase and enhance STEM opportunities and interest for local communities and for students in elementary, secondary, and higher education in the State and to foster STEM partnerships between students and public and private industries.



SECTION 7.34.(b)  Notwithstanding any other provision of law or the Committee Report described in Section 43.2 of this act to the contrary, the nonrecurring funds appropriated in this act to the Department of Public Instruction for the 2024-2025 fiscal year for SME Prime shall be reduced by five hundred thousand dollars ($500,000).



 



eliminate testing requirements to be admitted to an educator preparation program



SECTION 7.34A.  G.S. 115C-269.15(a) is repealed.



 



To ESTABLISH the cultivation of excellence pilot program



SECTION 7.34B.(a)  Article 16 of Chapter 115C of the General Statutes is amended by adding a new Part to read:



Part 3B.



Cultivation of Excellence Pilot Program.



§ 115C‑235. Cultivation of Excellence Pilot Program.



(a)        The General Assembly finds that the purpose of the Cultivation of Excellence Pilot Program is to provide the opportunity for the Cleveland County Board of Education to design and create an innovative and strategic vision to improve student achievement and performance, along with teacher recruitment and retention. Cleveland County Schools may participate in the Cultivation of Excellence Pilot Program beginning with the 2024‑2025 school year and ending following the 2029‑2030 school year.



(b)        Cleveland County Schools and the Cleveland County Board of Education may do the following:



(1)        Notwithstanding G.S. 115C‑301(c), exercise flexibility in establishing staffing levels for kindergarten through third grade classes.



(2)        Notwithstanding G.S. 115C‑84.2(d), adopt a school calendar that sets an opening date no earlier than three days prior to the opening date of the fall semester for Cleveland Community College.



(3)        Notwithstanding G.S. 115C‑295, employ individuals as teachers who do not hold a teacher license, subject to the following limitations:



a.         All teachers who are teaching in the core subject areas of mathematics, science, social studies, and language arts shall be college graduates.



b.         No more than fifty percent (50%) of the teachers at any school may be unlicensed.



c.         No more than twenty‑five percent (25%) of all teachers employed by the Cleveland County Board of Education may be unlicensed.



d.         All individuals employed as teachers who do not hold a teaching license shall complete preservice training, which may be offered through an educator preparation program or through Cleveland County Schools, 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.



(4)        Notwithstanding G.S. 110‑85, G.S. 110‑88, and any rule adopted pursuant to those statutes, employ any individual who meets the requirements for employment as a teaching assistant in a kindergarten classroom as a teacher assistant in the local school administrative unit's  NC Prekindergarten (NC Pre‑K) program.



(5)        Notwithstanding G.S. 115C‑105.25(b)(3a) and (12), transfer and approve transfers of funds for the teacher assistants allotment category and textbooks and digital resources allotment category.



(c)        If the State Board determines that Cleveland County Schools has failed to meet generally accepted standards of fiscal management or violated State or federal law at any time, the State Board shall terminate participation in the pilot, and shall submit, within 30 days of the termination, a report of the basis and evidence for the termination to the Joint Legislative Education Oversight Committee.



(d)       The Cleveland County Board of Education shall report no later than December 15, 2025, and annually thereafter until December 15, 2030, to the Joint Legislative Education Oversight Committee and the Superintendent of Public Instruction. The report shall include the following:



(1)        Employment information as follows:



a.         The number of licensed and unlicensed teachers and use of long term substitutes in filling vacancies for classroom teachers.



b.         Recruiting data on the number of licensed and unlicensed teachers hired during the school year.



c.         The number of NC Pre‑K teaching assistants hired who meet the requirements for employment as a kindergarten teaching assistant.



d.         Overall employee retention in each school year.



(2)        Average class sizes in grades kindergarten through third grade.



(3)        An explanation of how flexibility in allotment categories was used.



(4)        An explanation as to how the flexibility granted by this section has contributed to student success over time, beginning with the 2023‑2024 school year for comparison.



(5)        Any additional recommendations for the Cultivation of Excellence Pilot Program, including additional flexibilities that may contribute to student success.



SECTION 7.34B.(b)  Cleveland County Schools may submit a report to the Joint Legislative Education Oversight Committee and the Superintendent of Public Instruction by December 15, 2024, on initial implementation of the Cultivation of Excellent Pilot Program and any recommended legislative changes.



SECTION 7.34B.(c)  Part 3B of Article 16 of Chapter 115C of the General Statutes is repealed effective December 31, 2030.



 



PART VII‑A. COMPENSATION OF PUBLIC SCHOOL EMPLOYEES



 



TEACHER SALARY SCHEDULE



SECTION 7A.1.(a)  The following monthly teacher salary schedule shall apply for the 2024‑2025 fiscal year to licensed personnel of the public schools who are classified as teachers. The salary schedule is based on years of teaching experience.



2024‑2025 Teacher Monthly Salary Schedule



Years of Experience                                                              A Teachers



0                                                                                         $4,400



1                                                                                         $4,410



2                                                                                         $4,420



3                                                                                         $4,430



4                                                                                         $4,444



5                                                                                         $4,520



6                                                                                         $4,618



7                                                                                         $4,710



8                                                                                         $4,801



9                                                                                         $4,892



10                                                                                       $4,984



11                                                                                       $5,075



12                                                                                       $5,167



13                                                                                       $5,258



14                                                                                       $5,350



15‑24                                                                                  $5,442



25+                                                                                     $5,651



SECTION 7A.1.(b)  Salary Supplements for Teachers Paid on This Salary Schedule. –



(1)        Licensed teachers who have NBPTS certification shall receive a salary supplement each month of twelve percent (12%) of their monthly salary on the A salary schedule.



(2)        Licensed teachers who are classified as M teachers shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the A salary schedule.



(3)        Licensed teachers with licensure based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the supplement provided to them as M teachers.



(4)        Licensed teachers with licensure based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the supplement provided to them as M teachers.



(5)        Certified school nurses shall receive a salary supplement each month of ten percent (10%) of their monthly salary on the A salary schedule.



(6)        School counselors who are licensed as counselors at the master's degree level or higher shall receive a salary supplement each month of one hundred dollars ($100.00).



SECTION 7A.1.(c)  For school psychologists, school speech pathologists who are licensed as speech pathologists at the master's degree level or higher, and school audiologists who are licensed as audiologists at the master's degree level or higher, the following shall apply:



(1)        The first step of the salary schedule shall be equivalent to the sixth step of the A salary schedule.



(2)        These employees shall receive the following salary supplements each month:



a.         Ten percent (10%) of their monthly salary, excluding the supplement provided pursuant to sub‑subdivision b. of this subdivision.



b.         Three hundred fifty dollars ($350.00).



(3)        These employees are eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six‑year degree level or the doctoral degree level.



(4)        The twenty‑sixth step of the salary schedule shall be seven and one‑half percent (7.5%) higher than the salary received by these same employees on the twenty‑fifth step of the salary schedule.



SECTION 7A.1.(d)  Beginning with the 2014‑2015 fiscal year, in lieu of providing annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule.



SECTION 7A.1.(e)  A teacher compensated in accordance with this salary schedule for the 2024‑2025 school year shall receive an amount equal to the greater of the following:



(1)        The applicable amount on the salary schedule for the applicable school year.



(2)        For teachers who were eligible for longevity for the 2013‑2014 school year, the sum of the following:



a.         The salary the teacher received in the 2013‑2014 school year pursuant to Section 35.11 of S.L. 2013‑360.



b.         The longevity that the teacher would have received under the longevity system in effect for the 2013‑2014 school year provided in Section 35.11 of S.L. 2013‑360 based on the teacher's current years of service.



c.         The annual bonus provided in Section 9.1(e) of S.L. 2014‑100.



(3)        For teachers who were not eligible for longevity for the 2013‑2014 school year, the sum of the salary and annual bonus the teacher received in the 2014‑2015 school year pursuant to Section 9.1 of S.L. 2014‑100.



SECTION 7A.1.(f)  As used in this section, the term teacher shall also include instructional support personnel.



 



REINSTATE EDUCATION‑BASED SALARY SUPPLEMENTS FOR TEACHERS AND INSTRUCTIONAL SUPPORT PERSONNEL



SECTION 7A.2.(a)  G.S. 115C‑302.10 is repealed.



SECTION 7A.2.(b)  Notwithstanding any other provision of law, for the 2024‑2025 fiscal year, State Board of Education policy TCP‑A‑006, as it was in effect on June 30, 2013, shall be used to determine (i) whether teachers and instructional support personnel are paid on the M salary schedule and (ii) whether they receive a salary supplement for academic preparation at the six‑year or doctoral degree level.



 



REVISE CERTAIN SUPPLANTING CRITERIA FOR SUPPLEMENTAL FUNDS FOR TEACHER COMPENSATION



SECTION 7A.3.  Section 7A.4 of S.L. 2023‑134 reads as rewritten:



…



SECTION 7A.4.(b)  Definitions. – As used in this section, the following definitions shall apply:



…



(14)      Supplant factor. – For each local school administrative unit in each fiscal year of the fiscal biennium, as follows:



a.         For the 2023‑2024 fiscal year, the total non‑State funds expended for salary supplements for teachers in the 2020‑2021 fiscal year divided by the total State and non‑State funds expended for salaries for teachers in the 2020‑2021 fiscal year.



b.         For the 2024‑2025 fiscal year, the lesser of the following:



1.         The total non‑State funds expended for salary supplements for teachers in the 2020‑2021 fiscal year divided by the total State and non‑State funds expended for salaries for teachers in the 2020‑2021 fiscal year.



2.         The total non‑State funds expended for salary supplements for teachers in the 2021‑2022 fiscal year divided by the total State and non‑State funds expended for salaries for teachers in the 2021‑2022 fiscal year.



…



SECTION 7A.4.(f1)  Nonsupplant Enforcement. – If the State Board of Education determines that a local school administrative unit has supplanted non‑State funds in violation of subsection (f) of this section, the State Board of Education shall do the following:



(1)        For the 2023‑2024 fiscal year, continue to allocate funds to the unit in accordance with subsection (c) of this section.



(2)        For the 2024‑2025 fiscal year, do either of the following:



a.         If the unit can show that it has remedied the deficiency in funding, continue to allocate funds to the unit in accordance with subsection (c) of this section.



b.         If the unit cannot show that it has remedied the deficiency in funding, not allocate any funds under this section to the unit.



….



 



PRINCIPAL SALARY SCHEDULE



SECTION 7A.4.(a)  The following annual salary schedule for principals shall apply for the 2024‑2025 fiscal year, beginning July 1, 2024:



2024‑2025 Principal Annual Salary Schedule



Avg. Daily Membership              Base                      Met Growth         Exceeded Growth



0‑200                                       $78,547                 $86,401                 $94,256



201‑400                                   $82,474                 $90,721                 $98,968



401‑700                                   $86,401                 $95,041                 $103,682



701‑1,000                                $90,329                 $99,362                 $108,395



1,001‑1,600                             $94,256                 $103,682               $113,107



1,601+                                     $98,183                 $108,002               $117,820



A principal's placement on the salary schedule shall be determined according to the average daily membership of the school supervised by the principal, as described in subsection (b) of this section, and the school growth scores, calculated pursuant to G.S. 115C‑83.15(c), for each school the principal supervised in one or more prior school years, as described in subsection (c) of this section, regardless of a break in service, and provided the principal supervised each school as a principal for at least a majority of the school year, as follows:



(1)        A principal shall be paid according to the Exceeded Growth column of the schedule as follows:



a.         For the first six months of the applicable fiscal year, if the higher school growth score in one of the two prior school years shows that the school exceeded expected growth.



b.         For the second six months of the applicable fiscal year, if the school growth scores show the school or schools exceeded expected growth in at least two of the prior three school years.



(2)        A principal shall be paid according to the Met Growth column of the schedule as follows:



a.         For the first six months of the applicable fiscal year, if any of the following apply:



1.         The higher school growth score in one of the two prior school years shows that the school met expected growth.



2.         The principal supervised a school in the two prior school years that was not eligible to receive a school growth score.



b.         For the second six months of the applicable fiscal year, if any of the following apply:



1.         The school growth scores show the school or schools met expected growth in at least two of the prior three school years.



2.         The school growth scores show the school or schools met expected growth in at least one of the prior three school years and exceeded expected growth in one of the prior three school years.



3.         The principal supervised a school in at least two of the prior three school years that was not eligible to receive a school growth score.



(3)        A principal shall be paid according to the Base column, as follows:



a.         For the first six months of the applicable fiscal year, if any of the following apply:



1.         The school growth scores from the two prior school years show that the school did not meet expected growth in both years.



2.         The principal has not supervised any school as a principal for a majority of the two prior school years.



b.         For the second six months of the applicable fiscal year, if any of the following apply:



1.         The school growth scores show the school or schools did not meet expected growth in at least two of the prior three school years.



2.         The principal has not supervised any school as a principal for a majority of the school year in at least two of the prior three school years.



SECTION 7A.4.(b)  For purposes of this section, the following amounts shall be used during the following time periods:



(1)        For the first six months of the applicable fiscal year, the average daily membership for the school from the third year. If the school did not have an average daily membership in the third year, the projected average daily membership for the school for the applicable school year.



(2)        For the second six months of the applicable fiscal year, the average daily membership for the school for the applicable school year. For this time period only, the average daily membership of a principal's school shall include any prekindergarten students in membership at that school.



SECTION 7A.4.(c)  For purposes of determining the school growth scores for each school the principal supervised in one or more prior school years, the following school growth scores shall be used during the following time periods:



(1)        For the first six months of the applicable fiscal year, the school growth scores from the first and second years.



(2)        For the second six months of the applicable fiscal year, the school growth scores from the first, second, and third years. If a principal does not have a school growth score from any of the school years identified in this subdivision, the most recent available growth scores, up to the third year, shall be used.



SECTION 7A.4.(d)  Beginning with the 2017‑2018 fiscal year, in lieu of providing annual longevity payments to principals paid on the principal salary schedule, the amounts of those longevity payments are included in the annual amounts under the principal salary schedule.



SECTION 7A.4.(e)  A principal compensated in accordance with this section for the applicable fiscal year shall receive an amount equal to the greater of the following:



(1)        The applicable amount on the principal salary schedule for the applicable fiscal year.



(2)        For principals who were eligible for longevity in the 2016‑2017 fiscal year, the sum of the following:



a.         The salary the principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.



b.         The longevity that the principal would have received as provided for State employees under the North Carolina Human Resources Act for the 2016‑2017 fiscal year based on the principal's current years of service.



(3)        For principals who were not eligible for longevity in the 2016‑2017 fiscal year, the salary the principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.



SECTION 7A.4.(f)  For purposes of this section, the following definitions apply:



(1)        First year. – The school year immediately preceding the second year.



(2)        Second year. – The school year immediately preceding the third year.



(3)        The applicable fiscal year. – The 2024‑2025 fiscal year.



(4)        The applicable school year. – The 2024‑2025 school year.



(5)        Third year. – The school year immediately preceding the applicable school year.



 



BONUSES FOR PRINCIPALS



SECTION 7A.5.(a)  Article 19 of Chapter 115C of the General Statutes is amended by adding the following new section to read:



§ 115C‑285.2.  Principal bonuses.



(a)        To the extent funds are made available for this purpose, the Department of Public Instruction shall administer a bonus in each fiscal year to any principal who supervised a school as a principal for a majority of the previous school year if that school was in the top fifty percent (50%) of school growth in the State during the previous school year, as calculated by the State Board pursuant to G.S. 115C‑83.15(c). A principal shall receive no more than one bonus pursuant to this subsection. The bonus shall be paid at the highest amount for which the principal qualifies under the following schedule:



Statewide Growth Percentage                                                Bonus



Top 5%                                                                      $15,000



Top 10%                                                                    $10,000



Top 15%                                                                      $5,000



Top 20%                                                                      $2,500



Top 50%                                                                      $1,000



(b)        The bonus awarded pursuant to this section shall be in addition to any regular wage or other bonus the principal receives or is scheduled to receive.



(c)        Notwithstanding G.S. 135‑1(7a), the bonuses awarded pursuant to this section are not compensation under Article 1 of Chapter 135 of the General Statutes, Retirement System for Teachers and State Employees.



(d)       It is the intent of the General Assembly that funds provided pursuant to this section will supplement principal compensation and not supplant local funds.



(e)        The bonus provided pursuant to this section shall be paid no later than October 31 of the applicable fiscal year to qualifying principals employed as of October 1 of that year.



SECTION 7A.5.(b)  This section applies beginning with bonuses awarded in October of 2024.



 



ASSISTANT PRINCIPAL SALARIES



SECTION 7A.6.(a)  For the 2024‑2025 fiscal year, beginning July 1, 2024, assistant principals shall receive a monthly salary based on the salary schedule for teachers who are classified as A teachers plus nineteen percent (19%). An assistant principal shall be placed on the step on the salary schedule that reflects the total number of years of experience as a certified employee of the public schools. For purposes of this section, an administrator with a one‑year provisional assistant principal's certificate shall be considered equivalent to an assistant principal.



SECTION 7A.6.(b)  Assistant principals with certification based on academic preparation at the six‑year degree level shall be paid a salary supplement of one hundred twenty‑six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary supplement of two hundred fifty‑three dollars ($253.00) per month.



SECTION 7A.6.(c)  Participants in an approved full‑time master's in school administration program shall receive up to a 10‑month stipend during the internship period of the master's program. The stipend shall be at the beginning salary of an assistant principal or, for a teacher who becomes an intern, at least as much as that person would earn as a teacher on the teacher salary schedule. The North Carolina Principal Fellows Program or the school of education where the intern participates in a full‑time master's in school administration program shall supply the Department of Public Instruction with certification of eligible full‑time interns.



SECTION 7A.6.(d)  Beginning with the 2017‑2018 fiscal year, in lieu of providing annual longevity payments to assistant principals on the assistant principal salary schedule, the amounts of those longevity payments are included in the monthly amounts provided to assistant principals pursuant to subsection (a) of this section.



SECTION 7A.6.(e)  An assistant principal compensated in accordance with this section for the 2024‑2025 fiscal year shall receive an amount equal to the greater of the following:



(1)        The applicable amount on the salary schedule for the applicable year.



(2)        For assistant principals who were eligible for longevity in the 2016‑2017 fiscal year, the sum of the following:



a.         The salary the assistant principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.



b.         The longevity that the assistant principal would have received as provided for State employees under the North Carolina Human Resources Act for the 2016‑2017 fiscal year based on the assistant principal's current years of service.



(3)        For assistant principals who were not eligible for longevity in the 2016‑2017 fiscal year, the salary the assistant principal received in the 2016‑2017 fiscal year pursuant to Section 9.1 or Section 9.2 of S.L. 2016‑94.



 



CENTRAL OFFICE SALARIES



SECTION 7A.7.(a)  For the 2024‑2025 fiscal year, beginning July 1, 2024, the annual salary for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers whose salaries are supported from State funds shall be increased by four percent (4%).



SECTION 7A.7.(b)  The monthly salary maximums that follow apply to assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers for the 2024‑2025 fiscal year, beginning July 1, 2024:



2024‑2025 Fiscal Year



Maximum



School Administrator I                                                     $7,646



School Administrator II                                                   $8,102



School Administrator III                                                  $8,584



School Administrator IV                                                  $8,920



School Administrator V                                                   $9,276



School Administrator VI                                                  $9,826



School Administrator VII                                              $10,218



The local board of education shall determine the appropriate category and placement for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or finance officer within the maximums and within funds appropriated by the General Assembly for central office administrators and superintendents. The category in which an employee is placed shall be included in the contract of any employee.



SECTION 7A.7.(c)  The monthly salary maximums that follow apply to superintendents for the 2024‑2025 fiscal year, beginning July 1, 2024:



2024‑2025 Fiscal Year



Maximum



Superintendent I                                                             $10,832



Superintendent II                                                            $11,476



Superintendent III                                                          $12,166



Superintendent IV                                                          $12,897



Superintendent V                                                           $13,673



The local board of education shall determine the appropriate category and placement for the superintendent based on the average daily membership of the local school administrative unit and within funds appropriated by the General Assembly for central office administrators and superintendents.



SECTION 7A.7.(d)  Longevity pay for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers shall be as provided for State employees under the North Carolina Human Resources Act.



SECTION 7A.7.(e)  Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the six‑year degree level shall receive a salary supplement of one hundred twenty‑six dollars ($126.00) per month in addition to the compensation provided pursuant to this section. Superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers with certification based on academic preparation at the doctoral degree level shall receive a salary supplement of two hundred fifty‑three dollars ($253.00) per month in addition to the compensation provided for under this section.



SECTION 7A.7.(f)  The State Board of Education shall not permit local school administrative units to transfer State funds from other funding categories for salaries for public school central office administrators.



 



NONCERTIFIED PERSONNEL SALARIES



SECTION 7A.8.  For the 2024‑2025 fiscal year, beginning July 1, 2024, the annual salary for noncertified public school employees whose salaries are supported from State funds shall be increased as follows:



(1)        For permanent, full‑time employees on a 12‑month contract, by four percent (4%).



(2)        For the following employees, by an equitable amount based on the amount specified in subdivision (1) of this section:



a.         Permanent, full‑time employees on a contract for fewer than 12 months.



b.         Permanent, part‑time employees.



c.         Temporary and permanent hourly employees.



 



PART VIII. THE UNIVERSITY OF NORTH CAROLINA SYSTEM



 



PERMIT UNC TO ENTER INTO AGREEMENTS WITH VENDORS TO BUY BACK OR TRADE IN TECHNOLOGICAL EQUIPMENT



 



SECTION 8.1.(a)  G.S. 143‑64.03 reads as rewritten:



§ 143‑64.03.  Powers and duties of the State agency for surplus property.



…



(b1)      Nothing in this Article, or any administrative rules promulgated under this Article, shall be deemed to prohibit The University of North Carolina from conveying doing the following:



(1)        Conveying surplus computer equipment at no cost and cost. The University of North Carolina is encouraged to prioritize distribution to nonprofit entities that refurbish computers to donate to low‑income students or households in the State. Any conveyance to a nonprofit under this subsection subdivision shall be conditioned upon, and in consideration of, the nonprofit's promise to refurbish the computer equipment and its donation to low‑income students or households in the State and the nonprofit's reporting of information required by this subsection. subsection (b2) of this section. After an initial conveyance, The University of North Carolina shall not convey additional surplus computer equipment to a nonprofit, unless that nonprofit has reported the information required by this subsection subsection (b2) of this section for prior conveyances.



(2)        Entering into agreements with one or more vendors to trade in any technological equipment purchased from the vendor or to allow a vendor to buy back any technological equipment even if the equipment was not purchased from that vendor.



(b2)      When making a distribution under this subsection, either distributing surplus computer equipment as provided in subdivision (1) of subsection (b1) of this section or entering into a trade‑in or buyback agreement under subdivision (2) of subsection (b1) of this section, The University of North Carolina shall keep records on the type of computer equipment distributed, distributed or the technological equipment subject to the agreement, the number distributed, of computers distributed or the type and quantity of technological equipment subject to the agreement, the name of the nonprofit that received the distributions, distributions or the name of the vendor subject to the agreement, and the nonprofit's report on donations of refurbished computers to low‑income students or households in the State. If the nonprofit is unable to refurbish computer equipment for any reason, its report shall include the disposition of such computer equipment. A nonprofit shall provide a report to the Board of Governors of The University of North Carolina by February 1, 2022, and by February 1 of each year thereafter. The report shall contain the information required by this subsection and any other information the Board of Governors deems reasonably necessary to ensure the conditions required under this subsection are satisfied. The Board of Governors of The University of North Carolina shall submit a report containing the information required to be collected under this subsection to the Joint Legislative Education Oversight Committee by December 1, 2022, and by December March 1 of each year thereafter.



….



SECTION 8.1.(b)  This section is effective when it becomes law.



 



PERMIT UNC CONSTITUENT INSTITUTIONS TO CARRY FORWARD TAX PROCEEDS FROM SPORTS WAGERING



SECTION 8.2.(a)  G.S. 116‑30.3 is amended by adding a new subsection to read:



(g)      Funds appropriated to constituent institutions of The University of North Carolina pursuant to G.S. 105‑113.128 to support collegiate athletic departments shall not revert at the end of the fiscal year in which they are appropriated but shall remain available until expended.



SECTION 8.2.(b)  This section becomes effective June 30, 2024.



 



EXTEND DEADLINE FOR UNC BOARD OF GOVERNORS BUDGET ALLOCATIONS REPORT



SECTION 8.3.  G.S. 116‑11(9b) reads as rewritten:



(9b)    The Board of Governors shall report by February March 1 of each year to the Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on Education/Higher Education, the House of Representatives Appropriations Subcommittee on Education, and the Fiscal Research Division on the actions and adjustments necessary to its budgetary policies, regulations, and standards resulting from the Current Operations Appropriations Act for the administration and operation of The University of North Carolina and the distribution of State and federal funds to constituent institutions. The report shall include at least the following information for each constituent institution:



a.         Guidelines related to State salaries of University of North Carolina employees, including range, median, and mean of faculty salaries at the institution.



b.         Budget allocations and reductions, including for operating expenses and specific programs.



c.         Distribution of additional State allocations for enrollment funding.



d.         Use of State funds and budget flexibility.



e.         Availability of federal funds.



f.          Tuition and fees.



g.         Composition of the student population at the institution, including headcount enrollment and full‑time student enrollment for both undergraduate and graduate students, and aggregate data on residency status, median household income, gender, race, and ethnicity.



h.         Student retention and graduation rates.



i.          Postsecondary educational attainment rate at the institution, including comparison to statewide data.



j.          A comparison to prior fiscal year expenditures and appropriations.



k.         The total amount of mandatory student fee revenue collected by institution and fee type.



l.          Any source of student auxiliary revenue that represents greater than ten percent (10%) of the overall student auxiliary revenue by institution and revenue type.



m.        Any source of sales revenue that represents greater than ten percent (10%) of the overall sales revenue by institution and sales revenue type.



 



PERMIT CHAIR OF BOARD OF GOVERNORS TO DESIGNATE A MEMBER OF BOARD OF DIRECTORS FOR PROJECT KITTY HAWK



SECTION 8.4.  Section 8.24(c) of S.L. 2021‑180 reads as rewritten:



SECTION 8.24.(c)  Project Kitty Hawk shall be conducted by a nonprofit corporation created in accordance with this section and G.S. 116‑30.20. The nonprofit corporation shall include in its corporate bylaws that the organization will be governed by a board of directors consisting of nine members, as follows:



(1)        Two ex officio voting members as follows:



a.         The President of The University of North Carolina.



b.         The Chair of the Board of Governors of The University of North Carolina.Carolina, or the Chair's designee.



(2)        Seven voting members appointed by the Board of Governors, in consultation with the President of The University of North Carolina, as follows:



a.         Three members who shall be chancellors or chief academic officers of constituent institutions of The University of North Carolina.



b.         Four members who shall be individuals having experience in business management, higher education, or both.



 



INTENT TO SUPPORT THE SCHOOL OF CIVIC LIFE AND LEADERSHIP AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL



SECTION 8.5.  It is the intention of the General Assembly to provide funding in future fiscal years to facilitate the development of the School of Civic Life and Leadership at the University of North Carolina at Chapel Hill that was established pursuant to Section 8.5 of S.L. 2023‑134, including funding for faculty and administration, scholarships, and other needs of the new school, as described in the report submitted to the Joint Legislative Education Oversight Committee pursuant to Section 8.5(d) of S.L. 2023‑134.



 



NC COLLABORATORY PFAS STUDY



SECTION 8.6.  The North Carolina Collaboratory (Collaboratory) at the University of North Carolina at Chapel Hill shall study the economic impact of national drinking water standards from the Environmental Protection Agency (EPA) for per‑ and polyfluoroalkyl substances (PFAS) on public water systems in North Carolina. The study shall provide a summary of existing commercially available technologies, emerging technologies such as those being developed at The University of North Carolina, as well as cost, technical feasibility, time lines, and other data deemed relevant by the Collaboratory that may assist policymakers, municipal and county governments, and other entities developing strategic plans to implement water treatment technologies at public water supplies required to meet EPA standards. All units of State and local government shall provide all data requested by the Collaboratory as part of this study. The Collaboratory shall fund this study with existing PFAS appropriations and deliver a final report to the Environmental Review Commission no later than December 31, 2025.



 



NORTH CAROLINA COLLABORATORY TO ESTABLISH AND OPERATE THE OFFICE OF LEARNING RESEARCH



SECTION 8.7.(a)  OLR Established. – Of the funds appropriated in this act to the Board of Governors of The University of North Carolina, the sum of one million five hundred thousand dollars ($1,500,000) in recurring funds for the 2024‑2025 fiscal year shall be allocated to the North Carolina Collaboratory to establish and operate the Office of Learning Research (OLR), beginning in the 2024‑2025 fiscal year. When developing the base budget, as defined in G.S. 143C‑1‑1, beginning in the 2025‑2027 fiscal biennium, the Director of the Budget shall increase the recurring appropriation to the Board of Governors of The University of North Carolina for OLR to a total of two million dollars ($2,000,000) for each fiscal year to support the annualized cost of operating OLR. The purpose of OLR is to identify and evaluate the efficacy and efficiency of programs, activities, initiatives, procedures, and any other factors related to elementary and secondary education in the State.



SECTION 8.7.(b)  Funding and Duties of OLR. – Funding allocated to the Collaboratory for OLR shall be administered by the Collaboratory pursuant to the provisions of G.S. 116‑255(c). These funds shall be used to do at least the following:



(1)        Provide information and support needed by elementary and secondary public schools, university leaders, and elected officials to make evidence‑based decisions.



(2)        Collaborate with constituent institutions of The University of North Carolina and other stakeholders to implement innovative policies and programs to accelerate learning for all students.



(3)        Work with external research resources and partners to evaluate local, State, and federal programs in order to establish metrics and assess return on investment.



(4)        Support the operations of OLR.



SECTION 8.7.(c)  Collaboratory May Relocate OLR. – After the Collaboratory establishes OLR, the Collaboratory may, upon consultation with The University of North Carolina System Office and the Provost at the University of North Carolina at Chapel Hill, relocate OLR within the University of North Carolina at Chapel Hill. If the Collaboratory relocates OLR pursuant to this section, the Collaboratory shall do the following:



(1)        Continue to administer funds appropriated in this act for OLR for the operations of OLR, as described in subsection (b) of this section.



(2)        Continue to determine, fund, manage, and oversee the research portfolio of OLR. The entity to which OLR is relocated shall otherwise oversee the operations of OLR.



(3)        Within 60 days of the relocation, report to the Joint Legislative Education Oversight Committee on where OLR was relocated and any other information the Collaboratory deems relevant to the relocation.



SECTION 8.7.(d)  Access to Information. – All units of State and local government, including the State Board of Education, the Department of Public Instruction, and public school units, shall provide reasonable access to records, data, processes, personnel, and any other information deemed relevant by the Office or the Collaboratory, to the extent otherwise permitted under State and federal law, to carry out the provisions of this section.



SECTION 8.7.(e)  Report. – No later than March 1, 2025, the Collaboratory shall report to the Joint Legislative Education Oversight Committee on the progress made in establishing and operating OLR pursuant to this section. For each fiscal year OLR is in operation, the Collaboratory shall include in the annual report required by G.S. 116‑256 information on the activities of OLR from the prior fiscal year.



 



ADMISSIONS STANDARDS FOR HEALTH CARE PROGRAMS



SECTION 8.8.(a)  Article 1 of Chapter 116 of the General Statutes is amended by adding a new section to read:



§ 116‑33.10.  Admissions standards for health care programs.



(a)        All constituent institutions offering degrees, certifications, or training related to health care shall make publicly available the criteria by which applicants for admission to the institution or program are evaluated. The publicly available information shall include a rubric that details the weight placed upon each admissions criterion, including standardized test scores, grades, class rigor, personal statements, interviews, and any other factors used to determine admission.



(b)        By September 15 of each year, constituent institutions subject to subsection (a) of this section shall submit to the Board of Governors a report on the prior year's applicants for admission to programs related to health care. The report shall at least include the following de‑identified information separately for both applicants and admitted students, disaggregated by race:



(1)        Number of individuals.



(2)        Standardized test scores.



(3)        Grade point average.



(c)        The Board of Governors shall establish an electronic dashboard of all reported information that consolidates the information submitted by each constituent institution and shall annually update the dashboard by November 15. The Board of Governors shall provide notice to the Joint Legislative Education Oversight Committee when the dashboard has been updated.



(d)       The Board of Governors shall designate the degrees, certifications, and training offered by constituent institutions that relate to health care.



SECTION 8.8.(b)  This section is effective when it becomes law and applies beginning with reports due September 15, 2024.



 



UNC TEMPORARY CARRYFORWARD



SECTION 8.9.(a)  Part VIII of S.L. 2023‑134, as amended by Sections 2.11 and 2.12 of S.L. 2024‑1, is further amended by adding a new section to read:



UNC MAY CARRY FORWARD NONRECURRING FUNDS UNTIL THE END OF THE FISCAL BIENNIUM



SECTION 8.25.  Notwithstanding any other provision of law to the contrary, the following nonrecurring funds appropriated in this act for the 2023‑2024 fiscal year shall not revert at the end of the 2023‑2024 fiscal year but shall remain available until the end of the 2024‑2025 fiscal year:



(1)        Funds appropriated to the Board of Governors of The University of North Carolina.



(2)        Funds received by a constituent institution of The University of North Carolina.



SECTION 8.9.(b)  This section becomes effective June 30, 2024.



 



REVISE THE AUTHORITY AND DUTIES OF THE NORTH CAROLINA COLLABORATORY



SECTION 8.10.(a)  G.S. 116‑255 reads as rewritten:



§ 116‑255.  The North Carolina Collaboratory established.



…



(b)        Duties and Powers. – The Collaboratory shall do at least the following within the funds available:



…



(6)        Maintain an online reporting portal, in partnership with Assist the Office of State Fire Marshal, Marshal in the maintenance of the online reporting portal on the storage and deployment of Aqueous Film‑Forming Foams (AFFF) as required by G.S. 58‑82B‑10.



…



(c)        Funding Conditions and Restrictions. – The following applies to funding received by the Collaboratory:



…



(3)        For research or investigations that need to be carried out expeditiously in response to a project, opportunity, or a legislative mandate, the provisions of Articles 3, 3A, 3B, 3C, 3D, and 8C of Chapter 143 of the General Statutes, G.S. 143‑129, and G.S. 116‑31.10 shall not apply to the Collaboratory for the purchase of apparatus, supplies, material, services, capital improvements, or equipment in projects addressing an emerging or immediate threat to a perceived, potential, or real concern regarding public health, safety, or welfare. welfare. This subdivision shall apply only when at least fifty percent (50%) of the total funding for a project was provided by the Collaboratory. For each project that utilizes this exemption, the Collaboratory shall provide a justification in writing and make this document available on its website for the duration of the project.



…



(7)        The Collaboratory may negotiate or impose data use, data management, and revenue sharing requirements for intellectual property as well as requirements for the management and use of data developed through its research awards using State funds, including, but not limited to, contractual terms that provide for gross revenue distribution to the General Fund Collaboratory for future research and development projects.projects and to the General Fund. To the extent necessary, the Board of Governors of The University of North Carolina may amend and maintain patent policies incorporating the revenue sharing requirements of the Collaboratory as described in this subdivision.



(8)        Funds appropriated by the General Assembly from any source of funds to the Collaboratory (i) shall not revert to the General Fund but shall remain available until expended and (ii) shall not apply to the carryforward limitation imposed on constituent institutions of The University of North Carolina by G.S. 116‑30.3.



(9)        If a project or study of the Collaboratory includes records associated with any of the following, then all records associated with that project or study are not public records, as that term is defined in G.S. 132‑1:



a.         Specific engineering, vulnerability, or detailed design information about proposed or existing critical infrastructure, as described in G.S. 132‑1.7(a)(5).



b.         Vulnerability and risk assessments, as described in G.S. 132‑1.7(b).



SECTION 8.10.(b)  G.S. 58‑82B‑10 reads as rewritten:



§ 58‑82B‑10.  Duties of Office of the State Fire Marshal.



The Office of the State Fire Marshal (OSFM) shall do all of the following:



…



(2)        Assist the North Carolina Collaboratory, established under G.S. 116‑255, in the development of Develop and maintain, with the assistance of the North Carolina Collaboratory established under G.S. 116‑255, an online reporting portal for fire departments operated, regulated, or managed by one or more units of State and local government, including those located at or serving public airports, with the requirements of this Article.



….



SECTION 8.10.(c)  Subsection (i) of Section 8.10 of S.L. 2021‑180 reads as rewritten:



SECTION 8.10.(i)  The Collaboratory, in partnership with the The Office of the State Fire Marshal (OSFM) (OSFM), in partnership with the Collaboratory and any unit of State and local government deemed relevant by the Collaboratory, OSFM, shall develop and maintain the online reporting portal as required by G.S. 58‑82B‑10, as enacted by subsection (h) of this section, and G.S. 116‑255(b)(6), as enacted by Section 8.8 of this act. The portal shall consist of an online reporting tool and related database that captures the storage and deployment of Aqueous Film‑Forming Foams (AFFF) by fire departments in the State that are operated, managed, or overseen by units of local government, including those located at or serving public airports. The reporting tool shall be easily accessible to firefighters and fire department personnel to upload the data. The required inventory data shall include, at a minimum, the following:



….



 



Establish the sCHOOL of Applied Science and Technology at the University of North Carolina at Chapel Hill



SECTION 8.11.(a)  The Board of Governors of The University of North Carolina shall establish the School of Applied Science and Technology (the School) at the University of North Carolina at Chapel Hill (UNC‑CH). The School shall meet at least the following requirements:



(1)        Expand academic programming in areas critical to supporting research, industry partnerships, and the workforce needs of the State.



(2)        Reorganize existing and related programming into the newly established School.



(3)        Include academic degree programs in any postsecondary subject area defined by the Classification of Instructional Programs (CIP) of the United States Department of Education under CIP codes 03, 11, 14, 15, 26, 27, 31, and 40.



SECTION 8.11.(b)  As part of establishing the School of Applied Science and Technology pursuant to subsection (a) of this section, the Chancellor of UNC‑CH, in consultation with the Board of Governors of The University of North Carolina, shall review other existing academic programs at UNC‑CH and consider consolidating or eliminating programs that have a low return on investment or low enrollment. The Chancellor of UNC‑CH and the Board of Trustees of UNC‑CH shall reinvest any savings realized from consolidating or eliminating programs pursuant to this subsection into academic programs at UNC‑CH that have a high return on investment or high enrollment.



 



COMPLETION ASSISTANCE GRANTS



SECTION 8.12.(a)  Section 8.3 of S.L. 2023‑134 is repealed.



SECTION 8.12.(b)  Article 14 of Chapter 116 of the General Statutes is amended by adding a new section to read:



§ 116‑144.1.  Completion Assistance Grants.



(a)        Definition. – For purposes of this section, the term eligible constituent institutions refers to the following constituent institutions of The University of North Carolina:



(1)        Elizabeth City State University.



(2)        Fayetteville State University.



(3)        North Carolina Agricultural and Technical State University.



(4)        North Carolina Central University.



(5)        The University of North Carolina at Asheville.



(6)        The University of North Carolina at Greensboro.



(7)        The University of North Carolina at Pembroke.



(8)        Winston‑Salem State University.



(b)        Grant Program. – To the extent funds are made available for this purpose, the Board of Governors of The University of North Carolina shall establish a Completion Assistance Program (Program) at each eligible constituent institution. At a minimum, each Program shall meet the following criteria:



(1)        A student enrolled in a Program established by this section may receive up to one thousand dollars ($1,000) per academic year under that Program to pay for the costs of continuing attendance and earning necessary credit hours at the eligible constituent institution.



(2)        A student shall be eligible to receive funds under a Program if the student meets at least the following requirements:



a.         Needs financial assistance to remain enrolled at the eligible constituent institution and earn credits necessary to graduate on time.



b.         Is a resident for tuition purposes, as provided in G.S. 116‑143.1.



c.         Meets satisfactory academic progress, as determined by the Board.



d.         Has completed or is on track to complete at least 60 academic credit hours by the end of the semester in which the funds are provided.



e.         Has completed the Free Application for Federal Student Aid (FAFSA) for the academic year in which the funds are provided.



f.          Has an unpaid balance with the eligible constituent institution. This may include an unpaid balance for tuition, fees, room, board, or other expenses of attendance.



(c)        Report. – The Board of Governors of The University of North Carolina shall report on each Completion Assistance Program to the Joint Legislative Education Oversight Committee no later than March 15 of each year. The report shall include, at a minimum, an analysis of the impact of each Program on the following:



(1)        On‑time graduation rates.



(2)        Student debt at graduation.



(d)       Allocation of Funds. – The Board shall allocate funds appropriated each year to each eligible constituent institution of The University of North Carolina proportional to the number of undergraduate students enrolled at each eligible constituent institution who are residents of North Carolina and recipients of a federal Pell Grant.



SECTION 8.12.(c)  Notwithstanding subsection (a) of this section, the Board of Governors shall include the information required in Section 8.3(c) of S.L. 2023‑134 for the Completion Assistance Programs in effect in the 2023‑2024 academic year in the March 25, 2024, report required pursuant to G.S. 116‑144.1(c), as enacted by subsection (b) of this section.



 



tuition waiver for survivors of fallen probation officers



SECTION 8.13.(a)  G.S. 115B‑1 reads as rewritten:



§ 115B‑1.  Definitions.



The following definitions apply in this Chapter:



(1)        Correctional officer. – An employee of an employer who is certified as a State correctional officer under the provisions of Article 1 of Chapter 17C of the General Statutes.



(1a)      Employer. – The State of North Carolina and its departments, agencies, and institutions; or a county, city, town, or other political subdivision of the State.



(2)        Firefighter or volunteer firefighter. – The same as provided in G.S. 58‑86‑25 for eligible firemen.



(3)        Law enforcement officer. – An employee or volunteer of an employer who possesses the power of arrest, who has taken the law enforcement oath administered under the authority of the State as prescribed by G.S. 11‑11, and who is certified as a law enforcement officer under the provisions of Article 1 of Chapter 17C of the General Statutes or certified as a deputy sheriff under the provisions of Chapter 17E of the General Statutes. Law enforcement officer also means the sheriff of the county.



(4)        Permanently and totally disabled as a direct result of a traumatic injury sustained in the line of duty. – A person: (i) who as a law enforcement officer, correctional officer, firefighter, volunteer firefighter, probation officer, or rescue squad worker suffered a disabling injury while in active service or training for active service, (ii) who at the time of active service or training was a North Carolina resident, and (iii) who has been determined to be permanently and totally disabled for compensation purposes by the North Carolina Industrial Commission.



(4a)      Probation officer. – An employee of an employer who is certified as a State probation officer under the provisions of Article 1 of Chapter 17C of the General Statutes.



(5)        Rescue squad worker. – The same as provided in G.S. 58‑86‑30 for eligible rescue squad worker.



(6)        Survivor. – Any person whose parent, legal guardian, legal custodian, or spouse: (i) was a law enforcement officer, a correctional officer, a firefighter, a volunteer firefighter, probation officer, or a rescue squad worker, (ii) was killed while in active service or training for active service or died as a result of a service‑connected disability, and (iii) at the time of active service or training was a North Carolina resident. The term does not include the widow or widower of a law enforcement officer, correctional officer, firefighter, volunteer firefighter, probation officer, or a rescue squad worker if the widow or widower has remarried.



(7)        Tuition. – The amount charged for registering for a credit hour of instruction and shall not be construed to mean any other fees or charges or costs of textbooks.



SECTION 8.13.(b)  G.S. 115B‑2 reads as rewritten:



§ 115B‑2.  Tuition waiver authorized.



(a)        The constituent institutions of The University of North Carolina and the community colleges as defined in G.S. 115D‑2(2) shall permit the following persons to attend classes for credit or noncredit purposes without the required payment of tuition:



(1)        Repealed by Session Laws 2009‑451, s. 8.11(a), effective July 1, 2009.



(2)        Any person who is the survivor of a law enforcement officer, correctional officer, firefighter, volunteer firefighter, probation officer, or rescue squad worker killed as a direct result of a traumatic injury sustained in the line of duty.



(3)        The spouse of a law enforcement officer, correctional officer, firefighter, volunteer firefighter, probation officer, or rescue squad worker who is permanently and totally disabled as a direct result of a traumatic injury sustained in the line of duty.



(4)        Any child, if the child is at least 17 years old but not yet 24 years old, whose parent, legal guardian, or legal custodian is a law enforcement officer, correctional officer, firefighter, volunteer firefighter, probation officer, or rescue squad worker who is permanently and totally disabled as a direct result of a traumatic injury sustained in the line of duty. However, a child's eligibility for a waiver of tuition under this Chapter shall not exceed: (i) 54 months, if the child is seeking a baccalaureate degree, or (ii) if the child is not seeking a baccalaureate degree, the number of months required to complete the educational program to which the child is applying.



(5)        Any child, if the child (i) is at least 17 years old but not yet 24 years old, (ii) is a ward of North Carolina or was a ward of the State at the time the child reached the age of 18, (iii) is a resident of the State; and (iv) is eligible for services under the Chaffee Education and Training Vouchers Program; but the waiver shall only be to the extent that there is any tuition still payable after receipt of other financial aid received by the student.



(6)        Any child enrolled in a regional school established pursuant to Part 10 of Article 16 of Chapter 115C of the General Statutes who enrolls in classes at a constituent institution or community college which has a written agreement with the regional school.



(b)        Persons eligible for the tuition waiver under subsection (a) of this section must meet admission and other standards considered appropriate by the educational institution. In addition, the constituent institutions of The University of North Carolina shall accept these persons only on a space available basis.



SECTION 8.13.(c)  G.S. 115B‑5 reads as rewritten:



§ 115B‑5.  Proof of eligibility.



(a)        Repealed by Session Laws 2009‑451, s. 8.11(c), effective July 1, 2009.



(b)        The officials of the institutions charged with administration of this Chapter shall require the following proof to insure that a person applying to the institution and who requests a tuition waiver under G.S. 115B‑2(a)(2), (3), or (4) is eligible for the benefits provided by this Chapter.



(1)        The parent‑child relationship shall be verified by a birth certificate, legal adoption papers, or other documentary evidence deemed appropriate by the institution.



(1a)      The legal guardian‑child relationship shall be verified by an order from a court proceeding that established the legal guardianship.



(1b)      The legal custodian‑child relationship shall be verified by an order from a court proceeding that established the legal custodianship.



(2)        The marital relationship shall be verified by a marriage certificate or other documentary evidence deemed appropriate by the institution.



(3)        The cause of death of the law enforcement officer, correctional officer, firefighter, volunteer firefighter, probation officer, or rescue squad worker shall be verified by certification from the records of the Department of State Treasurer, the appropriate city or county law enforcement agency that employed the deceased, the administrative agency for the fire department or fire protection district recognized for funding under the Department of State Auditor, or the administrative agency having jurisdiction over any paid firefighters of all counties and cities.



(4)        The permanent and total disability shall be verified by documentation deemed necessary by the institution from the North Carolina Industrial Commission.



(c)        The officials of the institutions charged with administration of this Chapter may require proof to verify that a person applying to the institution under G.S. 115B‑2(a)(5) is eligible for the benefits provided by this Chapter.



SECTION 8.13.(d)  This section is effective when it becomes law and applies beginning with the 2024‑2025 academic year.



 



PART VIII‑A. UNIVERSITY/STATE EDUCATION ASSISTANCE AUTHORITY



 



STATE AGENCIES MAY CONTRACT WITH THE AUTHORITY TO ADMINISTER AGENCY LOAN PROGRAMS



 



SECTION 8A.1.  Article 23 of Chapter 116 of the General Statutes is amended by adding the following new section to read:



§ 116‑204.2.  Administration of State agency loan programs.



(a)        A State agency, as defined in G.S. 143C‑1‑1(d)(24) may, upon mutual agreement, enter into a contract with the State Education Assistance Authority for the Authority to administer a loan program on behalf of the State agency. The contract shall specify at least the following:



(1)        The Authority will administer the agency loan program using the structure of the Forgivable Education Loans for Service Program established pursuant to G.S. 116‑209.45.



(2)        The Authority may administer the agency loan program for students enrolled in one or more selected categories of eligible institutions, as defined in G.S. 116‑209.45.



(3)        The State agency shall provide sufficient funds to the Authority for administration of the agency loan program, including administrative costs associated with loan service and cash repayment that are incurred by the Authority after awards are distributed.



(b)        The Authority shall not use any funds appropriated by the General Assembly and allocated to the Authority for a specific program or purpose to facilitate the administration of an agency loan program under subsection (a) of this section.



 



CLARIFY ELIGIBILITY FOR IN‑STATE TUITION FOR INCARCERATED INDIVIDUALS



SECTION 8A.2.(a)  G.S. 116‑143.1 is amended by adding a new subsection to read:



(n)      Notwithstanding any other provisions of this section to the contrary, an incarcerated individual may qualify as a legal resident and a resident for tuition purposes pursuant to the provisions of this section. For purposes of this section, an incarcerated individual is a citizen of the United States who is incarcerated in a State correctional facility under the jurisdiction of the Division of Prisons of the Department of Adult Correction or in a local confinement facility, as defined in G.S. 153A‑217, under the jurisdiction of the applicable governing body, sheriff, or administrator of the local confinement facility. Nothing in this subsection shall be deemed to confer legal residency on an individual for any other purpose. An incarcerated individual may qualify as a resident pursuant to this section if either of the following criteria applies:



(1)        For a continuous period of 12 or more months, the individual has been in the custody of any of the following:



a.         A State correctional facility.



b.         A local confinement facility.



(2)        Both of the following criteria apply:



a.         The individual has been in the custody of one or more of the facilities identified in subdivision (1) of this subsection for less than 12 months.



b.         The entity with jurisdiction over the facility where the individual is incarcerated certifies to the Authority that the individual has demonstrated that the individual was residing in North Carolina for purposes of maintaining bona fide domicile during the 12‑month period prior to incarceration.



SECTION 8A.2.(b)  This section applies beginning with the 2024‑2025 academic year.



 



CONFORM IN‑STATE TUITION REQUIREMENTS TO FEDERAL LAW



SECTION 8A.3.(a)  G.S. 116‑143.1 is amended by adding the following new subsection to read:



(h2)    Any citizen of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau who is a nonresident shall be eligible to be charged the in‑State tuition rate and shall pay the full amount of the in‑State tuition rate and applicable mandatory fees.



SECTION 8A.3.(b)  This section becomes effective July 1, 2024, and applies beginning with the 2024‑2025 academic year.



 



ALLOW THE AUTHORITY TO USE ADMINISTRATIVE FUNDS FROM OPPORTUNITY SCHOLARSHIPS FOR PERSONAL EDUCATION STUDENT ACCOUNTS



SECTION 8A.4.(a)  G.S. 115C‑562.8(c) reads as rewritten:



(c)      Of the funds allocated to the Authority to award scholarship grants under this Part, the Authority may retain up to two and one‑half percent (2.5%) of the funds appropriated each fiscal year for administrative costs associated with the scholarship grant program. If the actual costs of administering the scholarship grant program are less than the funds authorized for administering the program pursuant to this subsection, the Authority may allocate unused funds for the additional administrative costs of the Personal Education Student Accounts for Children with Disabilities Program in accordance with G.S. 115C‑597(d).



SECTION 8A.4.(b)  G.S. 115C‑597(d) reads as rewritten:



(d)      Administration Costs. – Of the funds allocated to the Authority to award scholarship funds under this Article, the Authority may retain the lesser of four percent (4%) of the funds appropriated or two million dollars ($2,000,000) three million dollars ($3,000,000) each fiscal year for administrative costs associated with the program, including contracting with non‑State entities for administration of certain components of the program. If the actual costs of administering the program exceed the funds authorized for administering the program pursuant to this subsection, the Authority may allocate unused funds set aside for administration costs from the Opportunity Scholarship Grant Fund Reserve pursuant to G.S. 115C‑562.8(c) for the additional administrative costs of the Personal Education Student Accounts for Children with Disabilities Program.



 



REVISE AND EXTEND CERTAIN OPPORTUNITY SCHOLARSHIP DOMICILE VERIFICATION REQUIREMENTS



SECTION 8A.5.(a)  G.S. 115C‑562.3(a) reads as rewritten:



(a)      To verify that the domicile requirements of G.S. 115C‑366 are met for State residency, the Authority shall establish a domicile determination system and shall establish rules for determination of domicile within the State in accordance with this subsection. The rules may provide a process for the Authority to contract with a third‑party vendor to facilitate the determination of domicile in accordance with this subsection. The Division of Motor Vehicles of the Department of Transportation, the Department of Public Instruction, the Department of Commerce, the Department of Health and Human Services, the Department of Revenue, the State Board of Elections, and the State Chief Information Officer each shall expeditiously cooperate with the Authority in verifying electronically, or by other similarly effective and efficient means, evidence submitted to the Authority for the purposes of establishing the domicile required by G.S. 115C‑366 for State residency. The Authority shall accept any of the following as evidence of domicile within the State:



….



SECTION 8A.5.(b)  Section 8A.6(h) of S.L. 2023‑134 reads as rewritten:



SECTION 8A.6.(h)  Notwithstanding G.S. 115C‑562.3(a), as enacted by this act, as part of a student's application for a scholarship grant pursuant to Part 2A of Article 39 of Chapter 115C of the General Statutes for the 2024‑2025 school year, and 2025‑2026 school years, a parent shall certify to the State Education Assistance Authority that the domicile requirements of G.S. 115C‑562.1(3a), as enacted by this act, are met for eligibility purposes in lieu of submitting evidence electronically to the State Education Assistance Authority through a domicile determination system. The State Education Assistance Authority shall select six percent (6%) of the applications for the 2024‑2025 school year and 2025‑2026 school years to verify the domicile requirements are met for the award of a scholarship grant to an eligible student. As evidence of domicile, the State Education Assistance Authority may accept the submission of any of the documents set forth under G.S. 115C‑562.3(a). If a parent fails to cooperate with verification efforts under this section, the State Education Assistance Authority shall revoke the award of the scholarship grant to the eligible student. In addition, if the State Education Assistance Authority determines that the certification of the parent contains falsified information, the parent may be subject to administrative, civil, or criminal penalties. The State Education Assistance Authority shall include a notice of the potential for the imposition of penalties when requesting certification as part of the application process.



 



REVISE STATE EDUCATION ASSISTANCE AUTHORITY BOARD OF DIRECTORS MEMBER REQUIREMENTS



SECTION 8A.6.  G.S. 116‑203(b) reads as rewritten:



(b)      Membership. – The Authority shall be governed by a board of directors consisting of nine members, seven of whom shall be appointed and two of whom shall be ex officio as follows:



(1)        Seven members appointed according to the following:



a.         The Board of Governors of The University of North Carolina shall appoint the following members:



1.         One member who shall have expertise in secondary or higher education.



2.         One member who shall be or have experience as a chief financial officer or chief administrative officer from a nonpublic school that enrolls students receiving scholarship funds pursuant to Part 2A of Article 39 of Chapter 115C of the General Statutes.



3.         One member who shall have expertise in finance.



b.         The Governor shall appoint the following members:



1.         One member who shall have expertise in finance.



2.         One member who shall have expertise in secondary or higher education.



3.         One member who shall be a member of the public at large with an interest in higher education.



4.         One member who shall be a chief financial officer from a college or university that is a member of North Carolina Independent Colleges and Universities, Inc., appointed upon the recommendation of North Carolina Independent Colleges and Universities, Inc.



(2)        The chief financial officer of The University of North Carolina shall serve as an ex officio member.



(3)        The chief financial officer of the North Carolina Community College System shall serve as an ex officio member.



 



CLARIFY OPPORTUNITY SCHOLARSHIP RESIDENCY REQUIREMENTS AT TIME OF APPLICATION



SECTION 8A.7.  Part 2A of Article 39 of Chapter 115C of the General Statutes is amended by adding a new section to read:



§ 115C‑562.2A.  Residency required at time of application.



(a)        Except as otherwise provided in this section, a student shall be a resident of North Carolina that is eligible to attend a North Carolina public school pursuant to Article 25 of this Chapter at the time the student applies to receive a scholarship grant under this Part.



(b)        A student who is not a resident of North Carolina at the time the student submits an application to receive a scholarship grant under this Part shall be permitted to submit an application prior to becoming a resident of North Carolina if all of the following apply:



(1)        A parent or legal guardian is on active military duty and is transferred or pending transfer pursuant to an official military order to a military installation or reservation in the State.



(2)        Upon request by the Authority, a parent or legal guardian provides a copy of the official military order transferring to a military installation or reservation located in the State.



(3)        A parent or legal guardian completes and submits the application, except that proof of residency shall not be required until the parent or legal guardian transfers into North Carolina, at which time they shall be required prior to receiving an award.



(c)        A student that submits an application pursuant to subsection (b) of this section shall not receive a scholarship award until proof of residency is provided in accordance with the requirements of the Authority.



 



NORTH CAROLINA NURSING INSTRUCTOR FELLOWS PROGRAM



SECTION 8A.8.(a)  Article 23 of Chapter 116 of the General Statutes is amended by adding the following new Part to read:



Part 3A. North Carolina Nursing Instructor Fellows Program.



§ 116‑209.64.  Definitions.



The following definitions apply in this Part:



(1)        Academic term. – A semester or summer session.



(2)        Commission. – The North Carolina Nursing Instructor Fellows Commission.



(3)        Community college. – As defined in G.S. 115D‑2(2).



(4)        Director. – The Director of the North Carolina Nursing Instructor Fellows Program.



(5)        Eligible institution of higher education. – A university or private postsecondary institution that offers a Bachelor of Science in Nursing program that is meant to prepare a person to meet the educational requirements for licensure under Article 9A of Chapter 90 of the General Statutes and a Master of Science in Nursing Education program.



(6)        Forgivable loan. – A forgivable loan made under the Program.



(7)        Program. – The North Carolina Nursing Instructor Fellows Program.



(8)        Qualifying nurse. – A nurse who meets all of the following criteria:



a.         Received a forgivable loan.



b.         Graduated within 10 years from a Master of Science in Nursing Education program at an eligible institution of higher education, excluding any authorized deferment for extenuating circumstances.



c.         Holds a Bachelor of Science degree in Nursing and a Master of Science degree in Nursing Education.



d.         Is licensed as a registered nurse in this State.



e.         Is employed as an instructor in a qualifying nursing program.



(9)        Qualifying nursing program. – A nursing program at one of the following that prepares students to earn a degree in nursing and become a licensed practical nurse as defined in Article 9A of Chapter 90 of the General Statutes:



a.         A community college.



b.         A university or private postsecondary institution.



(10)      Trust Fund. – The North Carolina Nursing Instructor Fellows Program Trust Fund.



(11)      University or private postsecondary institution. – Either of the following:



a.         A postsecondary constituent institution of The University of North Carolina as defined in G.S. 116‑2(4).



b.         An eligible private postsecondary educational institution as defined in G.S. 116‑280(3).



§ 116‑209.65.  North Carolina Nursing Instructor Fellows Commission established; membership.



(a)        Commission Established. – There is established the North Carolina Nursing Instructor Fellows Commission. The Commission shall determine program and forgivable loan recipient selection criteria and selection procedures and shall select the recipients to receive forgivable loans under the North Carolina Nursing Instructor Fellows Program in accordance with the requirements of this Part. The Director of the North Carolina Nursing Instructor Fellows Program shall appoint staff to the Commission.



(b)        Membership. – The Commission shall consist of eight members who shall be appointed or serve as ex officio members as follows:



(1)        The Board of Governors of The University of North Carolina shall appoint four members to the Commission in even‑numbered years as follows:



a.         Two deans of schools of nursing at postsecondary constituent institutions of The University of North Carolina.



b.         The president of a North Carolina community college.



c.         A nurse who graduated from a school of nursing located in the State within three years of appointment to serve on the Commission.



(2)        The General Assembly shall appoint two members to the Commission in odd‑numbered years in accordance with G.S. 120‑121 as follows:



a.         One dean of a school of nursing at a private postsecondary institution operating in the State upon the recommendation of the Speaker of the House of Representatives.



b.         One dean of a school of nursing at a private postsecondary institution operating in the State upon the recommendation of the President Pro Tempore of the Senate.



(3)        The following two members shall serve as ex officio members to the Commission:



a.         The chair of the Board of the State Education Assistance Authority, or the chair's designee.



b.         The Director of the North Carolina Nursing Instructor Fellows Program.



(c)        Terms of Office. – Appointments to the Commission shall be for two‑year terms, beginning July 1 and expiring June 30.



(d)       Vacancies. – If a vacancy occurs in an appointed position on the Commission, the appointing authority shall appoint another person meeting the same qualifications to serve for the balance of the unexpired term.



(e)        Chair; Meetings. – The Director of the Program shall call the first meeting of the Commission. The Commission members shall elect a chair and a vice‑chair from the membership of the Commission to serve one‑year terms. The Commission shall meet regularly at times and places deemed necessary by the chair or, in the absence of the chair, by the vice‑chair.



(f)        Conflict of Interest. – A member of the Commission shall abstain from voting on the selection of a postsecondary constituent institution of The University of North Carolina or a private postsecondary institution operating in the State under G.S. 116‑209.62(f) if the member is an officer or employee of the institution or sits as a member of the institution's board of directors.



(g)        Expenses. – Commission members shall receive per diem, subsistence, and travel allowances in accordance with G.S. 138‑5 or G.S. 138‑6, as appropriate.



§ 116‑209.66.  North Carolina Nursing Instructor Fellows Program established; administration.



(a)        Program. – There is established the North Carolina Nursing Instructor Fellows Program to be administered by the System Office of The University of North Carolina, in conjunction with the Authority and the Commission. The purpose of the Program is to recruit, prepare, and support eligible nursing students for preparation as highly effective instructors in qualifying nursing programs. The Program shall be used to provide forgivable loans to nursing students enrolled in Bachelor of Science in Nursing and Master of Science in Nursing Education programs who are interested in preparing to become instructors in qualifying nursing programs.



(b)        Trust Fund. – There is established the North Carolina Nursing Instructor Fellows Program Trust Fund to be administered by the Authority, in conjunction with the System Office of The University of North Carolina. All funds (i) appropriated to, or otherwise received by, the Program for forgivable loans and other Program purposes, (ii) received as repayment of forgivable loans, and (iii) earned as interest on these funds shall be placed in the Trust Fund. The purpose of the Trust Fund is to provide financial assistance to qualified students for completion of a Bachelor of Science degree in Nursing and a Master of Science degree in Nursing Education to fill needed positions for instructors in qualifying nursing programs.



(c)        Uses of Monies in the Trust Fund. – The monies in the Trust Fund may be used only for (i) forgivable loans granted under the Program, (ii) administrative costs associated with the Program, including recruitment and recovery of funds advanced under the Program, (iii) mentoring and coaching support to forgivable loan recipients, and (iv) extracurricular enhancement activities of the Program in accordance with the following:



(1)        The Authority shall transfer the greater of three hundred thousand dollars ($300,000) or ten percent (10%) of the available funds from the Trust Fund to The University of North Carolina System Office at the beginning of each fiscal year for the following purposes:



a.         The Program's administrative costs.



b.         The salary of the Director of the Program and other Program staff.



c.         Expenses of the Commission.



d.         Extracurricular enhancement activities of the Program.



e.         Mentoring and coaching support to forgivable loan recipients in an amount of up to two thousand two hundred dollars ($2,200) for each Program recipient.



(2)        The Authority may use the greater of sixty thousand dollars ($60,000) or four percent (4%) of the funds appropriated to the Trust Fund each fiscal year for administrative costs associated with the Program.



(d)       Director of the Program. – The Board of Governors of The University of North Carolina shall appoint a Director of the Program. The Director shall appoint staff to the Commission and shall be responsible for recruitment and coordination of the Program, including proactive, aggressive, and strategic recruitment of potential recipients. Recruitment activities shall include (i) targeting regions of the State with the greatest need for nursing instructors in qualifying nursing programs, (ii) actively engaging with registered nurses, business leaders, experts in human resources, elected officials, and other community leaders throughout the State, and (iii) attracting candidates to the Program. The Director shall report to the President of The University of North Carolina. The Authority shall provide office space and clerical support staff, as necessary, to the Director for the Program.



(e)        Student Selection Criteria for Forgivable Loans. – The Commission shall adopt stringent standards for awarding forgivable loans based on multiple measures to ensure that only the strongest applicants receive them, including the following:



(1)        Grade point averages.



(2)        Performance on relevant assessments.



(3)        Experience, accomplishments, and other criteria demonstrating qualities positively correlated with highly effective instructors in qualifying nursing programs, including excellent verbal and communication skills.



(4)        Demonstrated commitment to serve in North Carolina.



(f)        Program Selection Criteria. – The Authority shall administer the Program in cooperation with up to eight eligible institutions of higher education that are selected by the Commission and represent a diverse selection of up to four postsecondary constituent institutions of The University of North Carolina and up to four private postsecondary institutions operating in the State. In selecting participating institutions, the Commission shall do the following:



(1)        Prioritize the selection of eligible institutions of higher education that have a plan to facilitate the ability of nursing instructor fellows to transition from a Bachelor of Science in Nursing program to a Master of Science in Nursing Education program at that institution.



(2)        After considering the priority described in subdivision (1) of this subsection, the Commission shall adopt stringent standards for selection of participating institutions, including the following:



a.         Demonstrates measurable impact of prior graduates on student learning, including impact of graduates serving as instructors in qualifying nursing programs.



b.         Demonstrates high rates of graduates passing exams required for licensure.



c.         Provides curricular and co‑curricular enhancements in leadership, facilitates learning for diverse learners, and promotes community engagement, and reflection and assessment.



d.         Provides early and frequent internship or practical experiences.



(g)        Awards of Forgivable Loans. – The Program shall provide forgivable loans to up to 100 students each year who are enrolled in a Bachelor of Science in Nursing program at an eligible institution of higher education. Loan payments shall be provided each year for completion of the Bachelor of Science in Nursing program and a Master of Science in Nursing Education program. The student shall be eligible to receive loan payments for the Master of Science in Nursing Education program as long as the student enrolls within two years of graduation from the Bachelor of Science in Nursing program. Forgivable loans shall be awarded per academic term for up to eight academic terms in amounts of up to five thousand dollars ($5,000) per semester or two thousand five hundred dollars ($2,500) per summer session. Forgivable loans may be used for tuition, fees, the cost of books, and expenses related to completing a Bachelor of Science degree in Nursing and a Master of Science degree in Nursing Education.



(h)        Administration of Forgivable Loan Awards. – Upon the naming of recipients of the forgivable loans by the Commission, the Commission shall transfer to the Authority its decisions. The Authority, in coordination with the Director, shall perform all of the administrative functions necessary to implement this Part, which functions shall include rulemaking, disseminating information, acting as a liaison with participating institutions of higher education, implementing forgivable loan agreements, loan monitoring, loan canceling through service and collection, determining the acceptability of service repayment agreements, enforcing the agreements, and all other functions necessary for the execution, payment, and enforcement of promissory notes required under this Part.



(i)         Annual Report. – The Commission, in coordination with the Authority, the North Carolina Board of Nursing, and the selected institutions of higher education participating in the Program, shall report no later than January 1, 2026, and annually thereafter, to the Joint Legislative Education Oversight Committee regarding the following:



(1)        Forgivable loans awarded from the Trust Fund, including the following:



a.         Demographic information regarding recipients.



b.         Number of recipients by institution of higher education.



(2)        Placement and repayment rates, including the following:



a.         Number of graduates who have been employed as instructors in qualifying nursing programs in the State within two years of graduation.



b.         Number of graduates who have elected to do loan repayment and their years of service, if any, prior to beginning loan repayment.



c.         Graduation rates of associate degree students taught by instructors in qualifying nursing programs who are recipients of loans under the Program.



(3)        Mentoring and coaching support, including the number of forgivable loan recipients who received mentoring and coaching support.



(4)        Selected nurse employer outcomes by degree program, including the following:



a.         Turnover rate for forgivable loan graduates, including the turnover rate for graduates who also received mentoring and coaching support.



b.         Fulfillment rate of forgivable loan graduates.



§ 116‑209.67.  Terms of forgivable loans; receipt and disbursement of funds.



(a)        Notes. – All forgivable loans shall be evidenced by notes made payable to the Authority that bear interest at a rate not to exceed ten percent (10%) per year as set by the Authority and beginning on the first day of September after completion of the Master of Science in Nursing Education program or 90 days after graduation, whichever is later. If a forgivable loan is terminated, the note shall be made payable to the Authority 90 days after termination of the forgivable loan. The forgivable loan may be terminated upon the recipient's withdrawal from the Program or by the recipient's failure to meet the standards set by the Commission.



(b)        Forgiveness. – For every year a qualifying nurse remains a qualifying nurse, the Authority shall forgive one‑third of the total loan amount received over the course of enrollment in the Bachelor of Science degree in Nursing program and the Master of Science degree in Nursing Education program and any interest accrued on that amount. The Authority shall also forgive the loan if it finds that it is impossible for the recipient to work for up to three years, within 10 years after completion of a Master of Science in Nursing Education program, as an instructor in a qualifying nursing program, because of the death or permanent disability of the recipient. If the recipient repays the forgivable loan by cash payments, all indebtedness shall be repaid within 10 years after completion of the Master of Science in Nursing Education program supported by the forgivable loan. If the recipient completes the Master of Science in Nursing Education program, payment of principal and interest shall begin no later than the first day of September after the completion of the program. Should a recipient present extenuating circumstances, the Authority may extend the period to repay the loan in cash to no more than a total of 12 years.



SECTION 8A.8.(b)  G.S. 116‑204 reads as rewritten:



§ 116‑204.  Powers of Authority.



The Authority is hereby authorized and empowered:



…



(9)        To collect loan repayments for loans awarded under the Teaching Fellows Program pursuant to G.S. 115C‑363.23A following programs if the loan repayment is outstanding for more than 30 days.days:



a.         The Teaching Fellows Program pursuant to Part 3 of Article 23 of Chapter 116 of the General Statutes.



b.         The Nursing Instructor Fellows Program pursuant to Part 3A of Article 23 of Chapter 116 of the General Statutes.



….



SECTION 8A.8.(c)  Initial appointments to the North Carolina Nursing Instructor Fellows Commission shall be made no later than August 15, 2025. Initial appointments to the Commission shall expire July 1, 2027.



SECTION 8A.8.(d)  The Commission shall establish initial selection criteria for recipients and select the eight institutions of higher education with approved nursing schools at which a recipient may use a forgivable loan no later than November 15, 2024, and shall make available applications to prospective students no later than December 31, 2024.



SECTION 8A.8.(e)  The Commission shall select recipients and award the initial forgivable loans for the 2025‑2026 academic year no later than April 1, 2025.



SECTION 8A.8.(f)  This section becomes effective July 1, 2024, and applies beginning with applications for enrollment in the Nursing Instructor Fellows Program in the 2025‑2026 academic year.



 



LONGLEAF COMMITMENT COMMUNITY COLLEGE GRANT CARRYFORWARD



SECTION 8A.9.  Section 8A.7 of S.L. 2023‑134 is amended by adding a new subsection to read:



SECTION 8A.7.(d1)  Carryforward. – The funds appropriated to the Board of Governors of The University of North Carolina in this act for the 2023‑2024 fiscal year to be allocated to the State Education Assistance Authority for the Program shall not revert at the end of the 2023‑2024 fiscal year but shall remain available for the purposes described in this section until the end of the 2024‑2025 fiscal year.



 



MILITARY‑CONNECTED STUDENTS OPPORTUNITY SCHOLARSHIP APPLICATIONS FOR 2024‑2025



SECTION 8A.10.(a)  Eligible Applications. – For scholarship grants awarded as provided in Part 2A of Article 39 of Chapter 115C of the General Statutes for the 2024‑2025 school year, the State Education Assistance Authority shall accept applications from July 1, 2024, until July 31, 2024, for military‑connected students, as defined in G.S. 115C‑407.5, who were unable to submit an application in February 2024 due to military orders. Inability to submit an application in February 2024 due to military orders shall be established by submission of documentation of one of the following:



(1)        Rescinded military orders:



a.         Receipt of orders for reassignment outside of this State incident to active military duty on or after October 1, 2023.



b.         Receipt of revised assignment orders on or after March 1, 2024, to abide in this State incident to active military duty.



(2)        New military assignment orders:



a.         Prior to March 1, 2024, abided in a state incident to active military duty other than this State.



b.         On or after March 1, 2024, abided in this State incident to active military duty.



SECTION 8A.10.(b)  Funds and Report. – Notwithstanding G.S. 115C‑562.8(a), if the funds required to award scholarship grants for qualifying applications pursuant to subsection (a) of this section exceed the funds available for the distribution of those awards, the State Education Assistance Authority may allocate funds from the unencumbered cash balance in the Opportunity Scholarship Grant Fund Reserve for the 2024‑2025 fiscal year to provide awards for these students in the 2024‑2025 school year. If the Authority expends funds in excess of those available in the Reserve to be awarded in the 2024‑2025 school year, the Authority shall submit the report required in G.S. 115C‑562.7(d) as it relates to the awards provided under this section.



SECTION 8A.10.(c)  Effective Date. – This section is effective when it becomes law.



 



REINSTATE AND REVISE CERTAIN TESTING REQUIREMENTS FOR NONPUBLIC SCHOOLS RECEIVING OPPORTUNITY SCHOLARSHIP FUNDS AND EXEMPT CERTAIN PESA STUDENTS FROM TESTING REQUIREMENTS



SECTION 8A.11.(a)  G.S. 115C‑562.5 reads as rewritten:



§ 115C‑562.5.  Obligations of nonpublic schools accepting eligible students receiving scholarship grants.



(a)        A nonpublic school that accepts eligible students receiving scholarship grants shall comply with the following:



…



(4)        Administer, at least once in each school year, tests as provided in this subdivision. Test performance data shall be submitted to the Authority by July 15 of each year. Test performance data reported to the Authority under this subdivision is not a public record under Chapter 132 of the General Statutes. Tests shall be administered to all eligible students enrolled in grades three and higher whose tuition and fees are paid in whole or in part with a scholarship grant as follows:



a.         The nationally standardized test designated by the Authority in grades three and eight.



b.         The ACT in grade 11.



c.         A a nationally standardized test or other nationally standardized equivalent measurement selected by the chief administrative officer of the nonpublic school in all other grades four and higher. to all eligible students whose tuition and fees are paid in whole or in part with a scholarship grant enrolled in grades three and higher, except for eligible students who receive funds under subsection (b1) of G.S. 115C‑592 through the North Carolina Personal Education Student Accounts for Children with Disabilities Program. For grades four three through seven, eight, the nationally standardized test or other equivalent measurement selected must measure achievement in the areas of English grammar, reading, spelling, and mathematics. For grades nine, 10, and 12, nine through 12, the nationally standardized test or other equivalent measurement selected must measure either (i) achievement in the areas of English grammar, reading, spelling, and mathematics or (ii) competencies in the verbal and quantitative areas. A nonpublic school shall annually certify compliance with this subdivision and shall retain records of the test administration. Each year the Authority shall select at least four percent (4%) of nonpublic schools to verify testing administration in accordance with this subdivision.



….



SECTION 8A.11.(b)  The following are repealed:



(1)        Subsections (i) and (j) of Section 8A.6 of S.L. 2023‑134.



(2)        G.S. 115C‑562.2(b5).



(3)        G.S. 115C‑562.5(c).



(4)        G.S. 115C‑562.7(c).



SECTION 8A.11.(c)  This section applies beginning with applications and the award of scholarship funds for the 2024‑2025 school year.



 



ADDITIONAL FUNDS FOR THE OPPORTUNITY SCHOLARSHIP PROGRAM



SECTION 8A.12.  G.S. 115C‑562.8 reads as rewritten:



§ 115C‑562.8.  The Opportunity Scholarship Grant Fund Reserve.



…



(b)        The General Assembly finds that, due to the critical need in this State to provide opportunity for school choice for North Carolina students, it is imperative that the State provide an increase of funds for 15 years to the Opportunity Scholarship Grant Fund Reserve. Therefore, there is appropriated from the General Fund to the Reserve the following amounts for each fiscal year to be used for the purposes set forth in this section:



Fiscal Year                                                                            Appropriation



2017‑2018                                                                                   $44,840,000



2018‑2019                                                                                   $54,840,000



2019‑2020                                                                                   $64,840,000



2020‑2021                                                                                   $74,840,000



2021‑2022                                                                                   $84,840,000



2022‑2023                                                                                   $94,840,000



2023‑2024                                                                                 $176,540,000



2024‑2025                                                                                 $191,540,000



2025‑2026                                                           $415,540,000$585,000,000



2026‑2027                                                           $430,540,000$600,000,000



2027‑2028                                                           $445,540,000$615,000,000



2028‑2029                                                           $460,540,000$630,000,000



2029‑2030                                                           $475,540,000$645,000,000



2030‑2031                                                           $490,540,000$660,000,000



2031‑2032                                                           $505,540,000$675,000,000



For the 2032‑2033 fiscal year and each fiscal year thereafter, there is appropriated from the General Fund to the Reserve the sum of five hundred twenty million five hundred forty thousand dollars ($520,540,000) six hundred ninety million dollars ($690,000,000) to be used for the purposes set forth in this section. When developing the base budget, as defined by G.S. 143C‑1‑1, for each fiscal year specified in this subsection, the Director of the Budget shall include the appropriated amount specified in this subsection for that fiscal year.



…



(e)        The Authority shall make reasonable efforts to ensure the amount of scholarship grants awarded for a school year do not exceed the funds that are available for the awards to eligible students in each fiscal year. However, notwithstanding subsection (a) of this section, to ensure that as many eligible students receive scholarship grants in a timely manner as possible, the Authority may use up to thirty percent (30%) of the unencumbered cash balance in the Reserve in a fiscal year if the funds required to award scholarship grants to eligible students for a school year exceed the funds available for the distribution of those awards. If the Authority expends funds in excess of those available in the Reserve for a particular school year, the Authority shall submit the report required by G.S. 115C‑562.7(b1).G.S. 115C‑562.7(d).



 



ADDITIONAL FUNDS FOR NORTH CAROLINA PERSONAL EDUCATION STUDENT ACCOUNTS FOR CHILDREN WITH DISABILITIES PROGRAM



SECTION 8A.13.  G.S. 115C‑600(a) reads as rewritten:



(a)      The General Assembly finds that due to the continued growth and ongoing need in this State to provide opportunity for school choice for children with disabilities, it is imperative that the State provide an increase in funds of at least one million dollars ($1,000,000) each fiscal year for 10 years for the Personal Education Student Accounts for Children with Disabilities Program. To that end, there is appropriated from the General Fund to the Board of Governors of The University of North Carolina the following amounts each fiscal year to be allocated to the Authority for the Program in accordance with this Article:



Fiscal Year                                                                        Appropriation



2023‑2024                                                                          $48,943,166



2024‑2025                                                                          $49,943,166



2025‑2026                                                                          $50,943,166$75,543,166



2026‑2027                                                                          $51,943,166$76,543,166



2027‑2028                                                                          $52,943,166$77,543,166



2028‑2029                                                                          $53,943,166$78,543,166



2029‑2030                                                                          $54,943,166$79,543,166



2030‑2031                                                                          $55,943,166$80,543,166



2031‑2032                                                                          $56,943,166$81,543,166



2032‑2033 and each subsequent fiscal year thereafter      $57,943,166$82,543,166



When developing the base budget, as defined by G.S. 143C‑1‑1, for each fiscal year specified in this section, the Director of the Budget shall include the appropriated amount specified in this section for that fiscal year.



 



INCREASE PROTECTIONS FOR FUNDS HELD IN NORTH CAROLINA EDUCATION SAVINGS AND INVESTMENT ACCOUNTS AND NC ABLE ACCOUNTS FROM CLAIMS OF CREDITORS AND OTHER JUDGMENTS



SECTION 8A.14.(a)  G.S. 116‑209.25 is amended by adding a new subsection to read:



(c2)    NC Education Savings and Investment Accounts Protected. – Notwithstanding any other provision of law, funds located in an education savings and investment account of the Parental Savings Trust Fund or withdrawn from the account and used for purposes permitted under section 529 of the Internal Revenue Code shall not be subject to liens, attachment, garnishment, levy, seizure, any involuntary sale or assignment by operation or execution of law, or the enforcement of any other judgment or claim to pay any debt or liability of any account owner, beneficiary, or contributor to a plan. This subsection shall not affect any protection from creditors under G.S. 1C‑1601(a)(10) for education savings and investment accounts that are not part of the Parental Savings Trust Fund.



SECTION 8A.14.(b)  G.S. 1C‑1601 reads as rewritten:



§ 1C‑1601.  What property exempt; waiver; exceptions.



(a)        Exempt property. – Each individual, resident of this State, who is a debtor is entitled to retain free of the enforcement of the claims of creditors:



…



(10)      Funds in a college savings plan Except for funds in an education savings and investment account that is part of the Parental Savings Trust Fund, as provided in G.S. 116‑209.25(c2), funds in an education savings and investment account qualified under section 529 of the Internal Revenue Code, not to exceed a cumulative limit of twenty‑five thousand dollars ($25,000), but excluding ($25,000). This exemption excludes any funds placed in a college savings plan an education savings and investment account within the preceding 12 months (except to the extent any of the contributions were made in the ordinary course of the debtor's financial affairs and were consistent with the debtor's past pattern of contributions) and only to the extent that the funds are for a child of the debtor and will actually be used for the child's college or university expenses.expenses of the child that are permitted under section 529 of the Internal Revenue Code.



….



SECTION 8A.14.(c)  Article 6F of Chapter 147 of the General Statutes is amended by adding a new section to read:



§ 147‑86.74.  Exemption from garnishment, attachment, judgment.



Notwithstanding any other provision of law, except as provided in this section, funds located in an ABLE account or withdrawn from the account and used for expenses permitted under section 529A of the Internal Revenue Code shall not be subject to liens, attachment, garnishment, levy, seizure, any involuntary sale or assignment by operation or execution of law, or the enforcement of any other judgment or claim to pay any debt or liability of any account owner, beneficiary, or contributor to a plan. This section does not prohibit the distribution of funds from the account following the death of the account owner under G.S. 147‑86.73(e) or under section 529A(f) of the Internal Revenue Code.



SECTION 8A.14.(d)  This section becomes effective October 1, 2024, and applies to actions filed on or after that date.



 



PART IX. HEALTH AND HUMAN SERVICES



 



PART IX‑A. AGING AND ADULT SERVICES



 



INCREASED HOME AND COMMUNITY CARE BLOCK GRANT FUNDS FOR HOUSING AND HOME IMPROVEMENT SERVICES FOR OLDER ADULTS



SECTION 9A.1.  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Aging and Adult Services (DAAS), the sum of one million one hundred thousand dollars ($1,100,000) in nonrecurring funds for the 2024‑2025 fiscal year shall be allocated to the Home and Community Care Block Grant (HCCBG) to increase funding for housing and home improvement services. Notwithstanding G.S. 143B‑181.1(a)(11) or any other State law to the contrary, (i) the DAAS shall develop a mechanism to separately track and distribute these funds to ensure the funds are allocated and used for housing and home improvement services and (ii) area agencies on aging and counties that are recipients of these HCCBG funds shall not use these funds for any purpose other than to fund housing and home improvement services to assist adults 60 years of age or older who are eligible for HCCBG services with obtaining or retaining adequate housing and basic furnishings. These funds shall be used to supplement and not supplant existing federal, State, and local funds for housing and home improvement services.



 



PART IX‑B. CENTRAL MANAGEMENT AND SUPPORT



 



USE OF DIRECTED GRANT FUNDS FOR THE NC ASSOCIATION OF FREE & CHARITABLE CLINICS



SECTION 9B.1.(a)  Notwithstanding any provision of S.L. 2023‑134, the Committee Report described in Section 43.2 of that act, or any other law to the contrary, funds appropriated to the Department of Health and Human Services, Division of Central Management and Support, Office of Rural Health, for each year of the 2023‑2025 fiscal biennium, to be allocated as a directed grant to the North Carolina Association of Free and Charitable Clinics (NCAFCC), Inc., a nonprofit organization, for distribution to its member clinics to support the provision of health care to individuals who are uninsured and underserved shall not be withheld from member clinics in which less than fifty percent (50%) of the total number of individuals served per year are Medicaid beneficiaries.



SECTION 9B.1.(b)  This section becomes effective July 1, 2024, and applies to all directed grant funds distributed by the NCAFCC to its member clinics on or after that date for the purposes described in subsection (a) of this section, including any unspent funds remaining from the 2023‑2024 fiscal year.



 



advisory council on rare diseases



SECTION 9B.2.(a)  Part 6 of Article 1B of Chapter 130A of the General Statutes reads as rewritten:



Part 6. Taylor's Law Establishing the Advisory Council on Rare Diseases.



§ 130A‑33.65.  Advisory Council on Rare Diseases; membership; terms; compensation; meetings; quorum.



(a)        Short Title. – This Part shall be known as Taylor's Law Establishing the Advisory Council on Rare Diseases.



(a1)      Establishment of Advisory Council. – There is established the Advisory Council on Rare Diseases within the School of Medicine of the University of North Carolina at Chapel Hill Department of Health and Human Services to advise the Governor, the Secretary, and the General Assembly on research, diagnosis, treatment, and education relating to rare diseases. This Part shall be known as Taylor's Law Establishing the Advisory Council on Rare Diseases. For purposes of this Part, rare disease has the same meaning as provided in 21 U.S.C. § 360bb.



(b)        Advisory Council Membership. – The advisory council shall consist of 19 members to be appointed as follows:



(1)        Upon the recommendation of the Dean of the School of Medicine of the University of North Carolina at Chapel Hill, the The Secretary shall appoint members to the advisory council as follows:the following 15 members:



a.         A physician Two physicians licensed and practicing in this State with experience researching, diagnosing, or treating rare diseases.



b.         A medical researcher with experience conducting research concerning rare diseases.



c.         A One registered nurse or advanced practice registered nurse licensed and practicing in the State with experience treating rare diseases.



d.         One rare diseases survivor.



e.         One member who represents a rare diseases foundation.



f.          One representative researcher from each an academic research institution in this State that receives any grant funding for rare diseases research.



g.         One parent of a childhood rare disease survivor.



h.         One hospital administrator, or the hospital administrator's designee, representing a hospital in the State that provides care to persons diagnosed with a rare disease.



i.          Two persons age 18 or older who have been diagnosed with a rare disease.



j.          Two persons age 18 or older who are, or were previously, caregivers to a person diagnosed with a rare disease.



k.         One representative of a rare disease patient organization that operates in the State.



l.          One pharmacist licensed and practicing in this State with knowledge and experience regarding drugs used to treat rare diseases.



m.        One representative of the life sciences, biotechnology, or biopharmaceutical industry that either focuses on research efforts related to the development of therapeutic products for persons diagnosed with a rare disease or has demonstratable understanding of the path to commercialization of such products.



n.         Two representatives of a health benefit plan or health insurer, at least one of whom is a representative of a North Carolina Medicaid Managed Care health plan.



o.         One genetic counselor with experience providing services to persons diagnosed with a rare disease or caregivers of persons diagnosed with a rare disease.



(2)        The chairs of the Joint Legislative Oversight Committee on Health and Human Services, or the chairs' designees, shall serve on the advisory council. A member of the advisory council who is designated by the chairs of the Joint Legislative Oversight Committee on Health and Human Services may be a member of the General Assembly.



(2a)      One member appointed by the President Pro Tempore of the Senate.



(2b)      One member appointed by the Speaker of the House of Representatives.



(2c)      One member appointed by the Governor.



(3)        The Secretary, or the Secretary's designee, shall serve as an ex officio, nonvoting member of the advisory council.



(c)        Members Length of Terms. – All initial members appointed pursuant to subsection (b) of this section to the advisory council shall serve for a term of three years, and no member initial member, except for the initial physician members and the initial member representing a rare disease patient organization, shall serve more than three consecutive terms. The initial physician members and the initial member representing a rare disease patient organization may serve for up to four consecutive terms. Thereafter, members appointed by the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Governor shall serve for a term of two years and members appointed by the Secretary shall serve for a term of two, three, or four years as determined by the chair of the advisory council.



(c1)      Vacancies and Removals. – Any appointment to fill a vacancy on the advisory council created by the resignation, dismissal, death, or disability of a member shall be filled by the appointing authority for the balance of the unexpired term. Each appointing authority may remove any member appointed by that appointing authority for misfeasance, malfeasance, or nonfeasance.



(d)       Per Diem and Expenses. – Members of the advisory council shall receive per diem and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138‑5 or G.S. 138‑6 or travel and subsistence expenses in accordance with the provisions of G.S. 120‑3.1, as applicable.



(e)        Administrative Support. – All administrative support and other services required by the advisory council shall be provided by the School of Medicine of the University of North Carolina at Chapel Hill.Department.



(f)        Upon the recommendation of the Dean of the School of Medicine of the University of North Carolina at Chapel Hill, Selection of Chair. – The Secretary shall select the chair of the advisory council from among the members of the council. The chair shall serve in this position until the expiration of his or her term.



(g)        The chair shall convene the first meeting of the advisory council no later than October 1, 2015. Meetings and Quorum. – A majority of the council members shall constitute a quorum. A majority vote of a quorum shall be required for any official action of the advisory council. Following the first meeting, the advisory council shall meet at least quarterly. The advisory council may meet more frequently upon the call of the chair or upon the request of a majority of council members.



§ 130A‑33.66.  Advisory Council on Rare Diseases; powers and duties; reports.



The advisory council shall have the following powers and duties:



(1)        Advise on coordinating the Governor, the Secretary, and the General Assembly on all of the following:



a.         Coordination of statewide efforts for the to study of the incidence of rare diseases within the State and the status of the rare disease community.



b.         Coordination of statewide efforts to increase public awareness and understanding of rare diseases.



c.         Identification of policy issues related to rare diseases and the advancement of policy initiatives related to rare diseases at the State and federal levels.



d.         The appropriation of State funds to facilitate increased public awareness of and improved treatment for rare diseases.



(2)        Report to the Secretary, the Governor, and the Joint Legislative Oversight Committee on Health and Human Services on behalf of the General Assembly not later than January 1, 2016, and annually thereafter, on the activities of the advisory council and its findings and recommendations regarding rare disease research and care in North Carolina, including any recommendations for statutory changes and amendments to the structure, organization, and powers or duties of the advisory council.



(3)        In consultation with accredited medical schools, accredited schools of public health, and hospitals licensed to operate in the State that provide care to persons diagnosed with a rare disease, develop resources or recommendations regarding quality of and access to treatment and services available within the State for persons diagnosed with a rare disease.



(4)        Advise and consult with the Department, the North Carolina Drug Utilization Review Board, and the Medicaid Preferred Drug List Review Panel in developing recommendations, resources, and programs relating to the diagnosis and treatment of rare diseases.



(5)        Identify additional relevant areas for the advisory council to study and evaluate.



SECTION 9B.2.(b)  The Department of Health and Human Services shall utilize funds available to the Department to cover the administrative costs of the Advisory Council on Rare Diseases authorized by this section.



 



PART IX‑C. CHILD AND FAMILY WELL‑BEING [RESERVED]



 



PART IX‑D. CHILD DEVELOPMENT AND EARLY EDUCATION



 



Child Care Subsidy/Add Multiplier for Certified Developmental Day Centers



SECTION 9D.1.  Section 9D.3(c) of S.L. 2023‑134 reads as rewritten:



SECTION 9D.3.(c)  Payments for the purchase of child care services for low‑income children shall be in accordance with the following requirements:



(1)        Religious sponsored child care facilities operating pursuant to G.S. 110‑106 and licensed child care centers and homes that meet the minimum licensing standards that are participating in the subsidized child care program shall be paid the one‑star county market rate or the rate they charge privately paying parents unless prohibited by subsection (f) of this section.



(2)        Licensed child care centers and homes with two or more stars shall receive the market rate for that rated license level for that age group unless prohibited by subsection (g) of this section.



(3)        No payments shall be made for transportation services charged by child care facilities.



(4)        Payments for subsidized child care services for postsecondary education shall be limited to a maximum of 20 months of enrollment. This shall not be determined before a family's annual recertification period.



(5)        The Department of Health and Human Services shall implement necessary rule changes to restructure services, including, but not limited to, targeting benefits to employment.



(6)        Certified developmental day centers shall receive the applicable county market rate plus (i) a multiplier of seventy‑five one‑hundredths for children with special needs and (ii) a multiplier of five‑tenths for typically developing children.



 



QUALITY RATING IMPROVEMENT SYSTEM (QRIS) MODERNIZATION



SECTION 9D.2.(a)  The Department of Health and Human Services, Division of Child Development and Early Education (Division), shall update and revise the quality rating improvement system (QRIS) to include alternative pathways for licensed child care facilities to earn a license of two to five stars based on program standards and education levels of staff as follows:



(1)        A pathway focused on program assessment.



(2)        A pathway focused on classroom and instructional quality.



(3)        A pathway focused on accreditation.



(4)        Any other pathway regarding updating the QRIS designated by the North Carolina Child Care Commission, in its discretion.



SECTION 9D.2.(b)  Upon request, a child care facility may be awarded a star‑rated license based on an accreditation from a national childhood education accreditation organization provided the facility maintains its accreditation and remains in good standing. Star‑rated licenses based on accreditation shall be issued as follows:



(1)        A three‑star‑rated license for a facility with an accreditation from any of the following:



a.         National Early Childhood Program Accreditation (NECPA).



b.         National Association for Family Child Care (NAFCC).



c.         American Montessori Society (AMS).



d.         International Montessori Council (IMC).



(2)        A five‑star‑rated license for a facility that meets the criteria of or has an accreditation from any of the following:



a.         National Association for the Education of Young Children (NAEYC).



b.         National Accreditation Commission for Early Care and Education Programs (NAC).



c.         Cognia (formerly AdvanceED) that includes early learning standards.



SECTION 9D.2.(c)  For accreditations earning less than five stars, there shall be additional opportunities to allow a facility to increase its star rating. The Child Care Commission (Commission) may, in its discretion, reassess an accreditation's star‑rating equivalency or increase or decrease the accreditation's star rating if the standard for earning the accreditation is revised. The Commission may approve additional accreditations from national childhood education accreditation organizations and determine their star‑rating equivalency upon request.



SECTION 9D.2.(d)  Notwithstanding any other provision of law to the contrary, the Division of Child Development and Early Education (Division) shall not require a child care facility with a two‑ to five‑star‑rated license to undergo a QRIS reassessment until rules implementing QRIS reform become effective. However, nothing in this subsection shall prevent a child care facility with a star‑rated license from electing to undergo a QRIS assessment, upon request of the Division, before rules implementing QRIS reform become effective.



SECTION 9D.2.(e)  Effective February 1, 2025, if the Division of Child Development and Early Education issues any new license with a rating of two to five stars to a child care facility or any facility that elects to undergo a QRIS assessment based on a program assessment before rules implementing QRIS reform become effective, the facility shall be evaluated using Infant/Toddler Environment Rating Scale, Third Edition, Early Childhood Environment Rating Scale, Third Edition, School‑Age Care Environment Rating Scale, Updated Edition, or Family Child Care Environment Rating Scale, Third Edition, as applicable.



SECTION 9D.2.(f)  Notwithstanding any other provision of law to the contrary, when the Division of Child Development and Early Education (Division) issues any new license with a rating of two to five stars to a child care facility or any facility that elects to undergo a QRIS assessment before rules implementing QRIS reform become effective, if the percentage of lead teachers in the facility required to meet the rated licensed education requirements criteria is set at seventy‑five percent (75%) for the facility to earn those education points toward the facility's star rating, the Division shall lower the seventy‑five percent (75%) threshold to fifty percent (50%) of lead teachers.



SECTION 9D.2.(g)  G.S. 110‑90 reads as rewritten:



§ 110‑90.  Powers and duties of Secretary of Health and Human Services.



The Secretary shall have the following powers and duties under the policies and rules of the Commission:



…



(4)        To issue a rated license to any child care facility which meets the standards established by this Article. The rating shall be based on the following:Article as follows:



a.         Before January 1, 2008, for For any child care facility currently holding a license of two to five stars, the rating shall be based on program standards, education levels of staff, and compliance history of the child care facility. By January 1, 2008, the rating shall be based on program standards and education levels of staff.stars or any new license issued to a child care facility with a rating of two to five stars, the rating shall be based on (i) program standards and (ii) education levels of staff. When evaluating program standards, the Department shall consider the facility's staff/child ratios, space requirements, continuous quality improvement standards, family and community engagement practices, environmental rating scale evaluations, curriculum, child observation and assessment, staff coaching or mentoring, or accreditation by a national or regional accrediting agency with early childhood standards. When evaluating education levels of staff, the Department shall consider any early childhood and child development coursework, early childhood education certificates, Child Development Associate credentials, associate or bachelor's degrees, continuous quality improvement standards for staff, continuing education units, early childhood education competency evaluations, work experience in child care, coaching or mentoring completed, and education standards within an accreditation award.



b.         Effective January 1, 2006, for any new license issued to a child care facility with a rating of two to five stars, the rating shall be based on program standards and education levels of staff.



c.         By January 1, 2008, for For any child care facility to maintain a license or Notice of Compliance, the child care facility shall have a compliance history of at least seventy‑five percent (75%), as assessed by the Department. When a child care facility fails to maintain a compliance history of at least seventy‑five percent (75%) for the past 18 months or during the length of time the facility has operated, whichever is less, as assessed by the Department, the Department may issue a provisional license or Notice of Compliance.



d.         Effective January 1, 2006, for any new license or Notice of Compliance issued to a child care facility, the facility shall maintain a compliance history of at least seventy‑five percent (75%), as assessed by the Department. When a child care facility fails to maintain a compliance history of at least seventy‑five percent (75%) for the past 18 months or during the length of time the facility has operated, whichever is less, as assessed by the Department, the Department may issue a provisional license or Notice of Compliance.



e.         The Department shall provide additional opportunities for child care providers to earn points for program standards and education levels of staff.licensed facilities with a rating of two to five stars with an opportunity to earn recognition or acknowledgment for voluntary participation in other quality initiatives or specialties, including educational and programmatic options, that are implemented in addition to quality rating improvement system (QRIS) standards.



….



SECTION 9D.2.(h)  Nothing in this section shall be construed as interfering with the requirements of G.S. 110‑88.1 regarding the training or curriculum offered by religious‑sponsored child care facilities.



SECTION 9D.2.(i)  The North Carolina Child Care Commission shall adopt, amend, or repeal any rules regarding star‑rating system reform necessary to implement the provisions of this section, including any rule establishing the star rating to be automatically assessed for child care facilities designated as Head Start programs.



SECTION 9D.2.(j)  Subsections (b) through (f) of this section are effective when they become law and expire on the date rules implementing QRIS reform become effective. The remainder of this section is effective when it becomes law.



 



CHILD CARE REGULATORY REFORMS



SECTION 9D.3.(a)  The General Assembly recognizes the need to balance maintaining critical health, safety, and welfare standards for child care, as well as a well‑established rating system used for informational purposes, with the need to move toward maximizing State funds for child care and increasing the supply of child care from State‑funded sources. The General Assembly further recognizes the importance of continuing the child care stabilization grants funding while weighing the need to decrease the cost of child care through deregulatory actions and at the same time maintain child care subsidy reimbursement rates. The purpose of this provision, in part, is to encourage the business community to partner with the State in achieving this goal.



SECTION 9D.3.(b)  To that end, by July 1, 2025, the Department of Health and Human Services, Division of Child Development and Early Education (Division), shall develop and implement a plan to separate the quality rating improvement system (QRIS) from the requirements and payments for participation in the State subsidized child care program using the market rate study submitted in 2025. The next market rate study shall be completed and made available to the public by May 1, 2025. After implementing the plan, licensed child care centers and homes may continue to receive star‑ratings on a voluntary basis. However, the star‑rating shall not impact the rate at which licensed child care centers or homes are reimbursed for subsidized child care.



SECTION 9D.3.(c)  The Division of Child Development and Early Education shall ensure that the next market rate study also includes recommended rates that are not segmented by star‑rating.



SECTION 9D.3.(d)  Section 9D.3 of S.L. 2023‑134 reads as rewritten:



…



SECTION 9D.3.(c)  Payments for the purchase of child care services for low‑income children shall be in accordance with the following requirements:



(1)        Religious sponsored child care facilities operating pursuant to G.S. 110‑106 and licensed child care centers and homes that meet the minimum licensing standards that are participating in the subsidized child care program shall be paid the one‑star county market rate or the rate they charge privately paying parents unless prohibited by subsection (f) of this section.Licensed child care centers and homes, including religious sponsored child care facilities operating pursuant to G.S. 110‑106, that meet the minimum licensing standards as set forth in G.S. 110‑91, that are participating in the subsidized child care program shall be paid the applicable market rate or the rate they charge privately paying parents.



(2)        Licensed child care centers and homes with two or more stars shall receive the market rate for that rated license level for that age group unless prohibited by subsection (g) of this section.



(3)        No payments shall be made for transportation services charged by child care facilities.



(4)        Payments for subsidized child care services for postsecondary education shall be limited to a maximum of 20 months of enrollment. This shall not be determined before a family's annual recertification period.



(5)        The Department of Health and Human Services shall implement necessary rule changes to restructure services, including, but not limited to, targeting benefits to employment.



…



SECTION 9D.3.(e)  A market rate shall be calculated for child care centers and homes at each rated license level for each county and for each age group or age category of enrollees and shall be representative of fees charged to parents for each age group of enrollees within the county. The Division of Child Development and Early Education shall also calculate a statewide rate and regional market rate for each rated license level for each age category.



SECTION 9D.3.(f)  The Division of Child Development and Early Education shall continue implementing policies that improve the quality of child care for subsidized children, including a policy in which child care subsidies are paid, to the extent possible, for child care in the higher quality centers and homes only. The Division shall define higher quality, and subsidy funds shall not be paid for one‑ or two‑star‑rated facilities. For those counties with an inadequate number of four‑ and five‑star‑rated facilities, the Division shall continue a transition period that allows the facilities to continue to receive subsidy funds while the facilities work on the increased star ratings. The Division may allow exemptions in counties where there is an inadequate number of four‑ and five‑star‑rated facilities for non‑star‑rated programs, such as religious programs.



SECTION 9D.3.(g)  Facilities licensed pursuant to Article 7 of Chapter 110 of the General Statutes and facilities operated pursuant to G.S. 110‑106 may participate in the program that provides for the purchase of care in child care facilities for minor children of needy families. Except as authorized by subsection (f) of this section, no No separate licensing requirements shall be used to select facilities to participate. In addition, child care facilities shall be required to meet any additional applicable requirements of federal law or regulations. Child care arrangements exempt from State regulation pursuant to Article 7 of Chapter 110 of the General Statutes shall meet the requirements established by other State law and by the Social Services Commission.



County departments of social services or other local contracting agencies shall not use a provider's failure to comply with requirements in addition to those specified in this subsection as a condition for reducing the provider's subsidized child care rate.



….



SECTION 9D.3.(e)  G.S. 110‑90(4) is amended by adding a new sub‑subdivision to read:



f.        A rated license shall have no impact on the rate at which a child care facility is reimbursed for subsidized child care.



SECTION 9D.3.(f)  Nothing in this section shall be construed as impacting the star‑rating requirements for the NC Prekindergarten (NC Pre‑K) program.



SECTION 9D.3.(g)  The North Carolina Child Care Commission shall adopt, amend, or repeal any rules regarding separating the star‑rating system from requirements and payments for reimbursement for subsidized child care.



SECTION 9D.3.(h)  G.S. 110‑86(5a) reads as rewritten:



(5a)    Lead teacher. – An individual who is responsible for planning and implementing the daily program of activities for a group no more than two groups of children in a child care facility.



SECTION 9D.3.(i)  G.S. 110‑91(7)a. reads as rewritten:



a.        The Commission shall adopt rules for child care centers regarding staff‑child ratios, group sizes and multi‑age groupings other than for infants and toddlers, provided that these rules shall be no less stringent than those currently required for staff‑child ratios as enacted in Section 156(e) of Chapter 757 of the 1985 Session Laws. Only one lead teacher shall be required for every two groups.



1.         Except as otherwise provided in this subdivision, the staff‑child ratios and group sizes for infants and toddlers in child care centers shall be no less stringent than as follows:



Age                    Ratio Staff/Children                  Group Size



0 to 12 months                          1/5                                  10



12 to 24 months                        1/6                                  12



2 to 3 years                               1/10                                20.



No child care center shall care for more than 25 children in one group. Child care centers providing care for 26 or more children shall provide for two or more groups according to the ages of children and shall provide separate supervisory personnel and separate identifiable space for each group.



2.         When any preschool‑aged child is enrolled in a child care center and the licensed capacity of the center is six through 12 children, the staff‑child ratios shall be no less stringent than as follows:



Age                               Ratio Staff/Children



0 to 12 months                             1/5 preschool children plus 3



additional school‑aged children



12 to 24 months                           1/6 preschool children plus 2



additional school‑aged children.



The following shall also apply:



I.          There is no specific group size.



II.        When only one caregiver is required to meet the staff‑child ratio, the operator shall make available to parents the name, address, and phone number of an adult who is nearby and available for emergency relief.



III.       Children shall be supervised at all times. All children who are not asleep or resting shall be visually supervised. Children may sleep or rest in another room as long as a caregiver can hear them and respond immediately.



SECTION 9D.3.(j)  The Division of Child Development and Early Education (Division) shall submit a progress report on developing the plan required by this section by April 1, 2025, to the Chairs of the House and Senate Appropriations Committees, the Chairs of the House and Senate Appropriations Committees on Health and Human Services, the Joint Legislative Oversight Committee on Health and Human Services, and the Fiscal Research Division. The Division shall submit a final report within two months from the date the new rates are implemented pursuant to this section.



 



Tri‑Share Child Care Pilot Program Expansion



SECTION 9D.4.  Section 9D.9 of S.L. 2023‑134 reads as rewritten:



SECTION 9D.9.(a)  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Child Development and Early Education, to be allocated to the North Carolina Partnership for Children, Inc., the sum of nine hundred thousand dollars ($900,000) in nonrecurring funds for each year of the 2023‑2025 fiscal biennium the 2023‑2024 fiscal year and the sum of one million nine hundred thousand dollars ($1,900,000) in nonrecurring funds for the 2024‑2025 fiscal year shall be used to provide the State portion of funding for the Tri‑Share Child Care pilot program established by this section. Funds provided under this section shall be divided evenly in each fiscal year among the regional facilitator hubs, as described in subsection (c) of this section, selected to participate in the pilot program. Upon completion of the pilot program, any unexpended funds shall revert to the General Fund.



SECTION 9D.9.(b)  The Division of Child Development and Early Education (Division), in collaboration with the North Carolina Partnership for Children, Inc. (NCPC), shall establish a two‑year pilot program to implement the Tri‑Share Child Care program, a program that creates a public/private partnership to share the cost of child care equally between employers, eligible employees, and the State to:



(1)        Make high‑quality child care affordable and accessible for working families.



(2)        Help employers retain and attract employees.



(3)        Help stabilize child care businesses across the State.



SECTION 9D.9.(c)  The Division and NCPC shall select up to three six local partnerships to serve as regional facilitator hubs to implement and administer the pilot program and act as regional intermediaries between employers, families, child care providers, and the State. The Division and NCPC shall select local partnerships to participate in the pilot program from geographically diverse areas across the State, with one at least two selected from a tier one county. tier one counties, one selected from a tier two county, and one selected from a tier three county. For purposes of this section, a tier one one, tier two, and tier three county shall have the same designation as that established by the North Carolina Department of Commerce's 2023 2024 County Tier Designations.



…



SECTION 9D.9.(g)  Of the funds appropriated in this section to the Division of Child Development and Early Education (Division) for the Tri‑Share Child Care pilot program for the 2024‑2025 fiscal year, the Division shall use up to one hundred thousand dollars ($100,000) to conduct an evaluation of the program or contract a third party to evaluate the program. Within six months after completion of the pilot program, the Division shall submit a report the evaluation to the Joint Legislative Oversight Committee on Health and Human Services Services, the Office of State Budget and Management, and the Fiscal Research Division. The report evaluation shall include, at a minimum, each of the following:



(1)        The number of children served, by age and county.



(2)        Total pilot program costs, including any administrative costs.



(3)        The amount of funds needed to expand the program statewide.



(4)        The list of employers participating in the pilot program.



(4a)      Statistics that describe the uptake and use of the pilot program, such as (i) the number of applications received, (ii) the amount of funds requested, (iii) the number of applications approved, (iv) the total amount of funds awarded, and (v) the types of child care used by students receiving funds from the pilot program.



(4b)      An estimate of the number of families who would not otherwise access child care services except as a result of the pilot program.



(4c)      An assessment of any obstacles families and businesses faced in receiving pilot program funds or participating in the pilot program.



(4d)     Recommendations on whether to continue the pilot program and, if so, what improvements might be made.



(5)        Any other relevant information deemed appropriate.



 



CLARIFY LANGUAGE/COMPENSATION GRANTS FOR CHILD CARE PROGRAMS



SECTION 9D.5.  Section 9L.2(b) of S.L. 2021‑180, as amended by Section 9L.2(a) of S.L. 2022‑74 and Section 9D.11 of S.L. 2023‑134, reads as rewritten:



SECTION 9L.2.(b)  Of the funds appropriated in this act from federal Child Care and Development Block Grant funds received pursuant to ARPA to the Department of Health and Human Services, Division of Child Development and Early Education, the sum of five hundred three million seven hundred ninety‑three thousand seven hundred eleven dollars ($503,793,711) in nonrecurring funds shall be allocated for the following in response to the COVID‑19 pandemic:



(1)        Up to two hundred seventy‑four million dollars ($274,000,000) of the funds shall be used as follows:



a.         A minimum of two hundred six million dollars ($206,000,000) but no more than two hundred fifteen million dollars ($215,000,000) to (i) reduce the waitlist for children eligible for subsidized child care who are in foster care and (ii) after addressing the waitlist under item (i) of this sub‑subdivision, work toward reducing the waitlist for children eligible for subsidized child care. Additionally, the Division shall use a portion of these funds to extend the compensation grants portion of the child care stabilization grants, as authorized under Section 3.2(a) of S.L. 2021‑25, until these funds are exhausted.



b.         A minimum of fifty million dollars ($50,000,000) but no more than Up to fifty‑nine million dollars ($59,000,000) to modernize and improve early childhood technology infrastructure.



….



 



Child Care Stabilization Grants Funding



SECTION 9D.6.  Of the funds appropriated in this act for the 2024‑2025 fiscal year to the Department of Health and Human Services, Division of Child Development and Early Education (Division), the sum of one hundred nine million five hundred one thousand seventy‑eight dollars ($109,501,078) from State Fiscal Recovery Funds and the sum of twenty‑five million four hundred ninety‑eight thousand nine hundred twenty‑two dollars ($25,498,922) in nonrecurring funds from the Child Care and Development Fund Block Grant for quality and availability initiatives shall be used to continue the compensation grants portion of the child care stabilization grants. The Division shall decrease grant amounts from levels it has previously provided. The Division shall provide grants for four quarters using decreased amounts to stay within the funding limits provided in this section.



 



PART IX‑E. HEALTH BENEFITS



 



DURATION OF MEDICAID PROGRAM MODIFICATIONS



SECTION 9E.1.(a)  Except for statutory changes or where otherwise specified, the Department of Health and Human Services shall not be required to maintain, after June 30, 2025, any modifications to the Medicaid program required by this Subpart.



SECTION 9E.1.(b)  Consistent with the duration of Medicaid program modifications established in subsection (a) of this section, the Department of Health and Human Services shall not be required to maintain, after June 30, 2025, any modifications to the Medicaid program required by Section 15 of S.L. 2023‑129.



 



MODIFY MEDICAID RECEIVABLES ACCOUNTED FOR AS NONTAX REVENUE



SECTION 9E.2.  Section 9E.5(b) of S.L. 2023‑134 reads as rewritten:



SECTION 9E.5.(b)  For the 2023‑2024 fiscal year, the Department of Health and Human Services shall deposit from its revenues one hundred sixty‑four million five hundred thousand dollars ($164,500,000) with the Department of State Treasurer to be accounted for as nontax revenue. For the 2024‑2025 fiscal year, the Department of Health and Human Services shall deposit from its revenues eighty‑eight million four hundred thousand one hundred fifty‑nine million five hundred thousand dollars ($88,400,000) ($159,500,000) with the Department of State Treasurer to be accounted for as nontax revenue. These deposits shall represent the return of advanced General Fund appropriations, nonfederal revenue, fund balances, or other resources from State‑owned and State‑operated hospitals that are used to provide indigent and nonindigent care services. The return from State‑owned and State‑operated hospitals to the Department of Health and Human Services shall be made from nonfederal resources in the following manner:



….



 



CONTINGENT TRANSFER OF FUNDS FOR CHILDREN AND FAMILIES SPECIALTY PLAN



SECTION 9E.3.  Funds from the Medicaid Contingency Reserve, described in G.S. 143C‑4‑11, shall be transferred to the Department of Health and Human Services, Division of Health Benefits (DHB), in accordance with this section. Beginning with December, 2024, for each month of the 2024‑2025 fiscal year in which DHB makes capitation payments for the Children and Families Specialty Plan, as defined in G.S. 108D‑1, the State Controller shall transfer five million dollars ($5,000,000) in nonrecurring funds to DHB to be used for costs associated with the operation of the Children and Families Specialty Plan. To the extent that any funds are transferred under this section, the funds are appropriated for the purpose set forth in this section.



 



TEMPORARILY EXTEND OPTION TO DECREASE MEDICAID ENROLLMENT BURDEN ON COUNTY DEPARTMENTS OF SOCIAL SERVICES



SECTION 9E.4.(a)  Section 1.8(a) of S.L. 2023‑7 reads as rewritten:



SECTION 1.8.(a)  Notwithstanding G.S. 108A‑54(d) and in accordance with G.S. 143B‑24(b), the Department of Health and Human Services (DHHS) is authorized, on a temporary basis to conclude no later than 12 months after the date approved by the Centers for Medicare and Medicaid Services (CMS) for Medicaid coverage to begin in North Carolina for individuals described in section 1902(a)(10)(A)(i)(VIII) of the Social Security Act, by June 30, 2025, to utilize the federally facilitated marketplace (Marketplace), also known as the federal health benefit exchange, to make Medicaid eligibility determinations. In accordance with G.S. 108A‑54(b), these eligibility determinations shall be in compliance with all eligibility categories, resource limits, and income thresholds set by the General Assembly.



SECTION 9E.4.(b)  Section 1.8(g) of S.L. 2023‑7 reads as rewritten:



SECTION 1.8.(g)  Subsection (a) of this section expires 12 months after the date approved by the Centers for Medicare and Medicaid Services (CMS) for Medicaid coverage to begin in North Carolina for individuals described in section 1902(a)(10)(A)(i)(VIII) of the Social Security Act.June 30, 2025.



 



INCREASE RATES FOR SPEECH THERAPY



SECTION 9E.5.  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Health Benefits, the sum of four million dollars ($4,000,000) in recurring funds for the 2024‑2025 fiscal year shall be used to increase the Medicaid rates paid for speech‑language therapy and audiology therapy services.



 



Increase Rates for Durable Medical Equipment



SECTION 9E.6.  Of the funds appropriated in this act to the Department of Health and Human Services, Division of Health Benefits, the sum of nine million dollars ($9,000,000) in recurring funds for the 2024‑2025 fiscal year shall be used to increase the Medicaid rates paid for durable medical equipment.



 



EXTEND DURABLE MEDICAL EQUIPMENT RATEs IN MEDICAID MANAGED CARE



SECTION 9E.7.  Section 11 of S.L. 2020‑88, as amended by Section 3.6 of S.L. 2021‑62, reads as rewritten:



DURABLE MEDICAL EQUIPMENT RATE



SECTION 11.  For the first five years 10 years, ending June 30, 2031, of the initial standard benefit plan prepaid health plan capitated contracts required under Article 4 of Chapter 108D of the General Statutes, the reimbursement for durable medical equipment and supplies, orthotics, and prosthetics under managed care shall be set at one hundred percent (100%) of the lesser of the supplier's usual and customary rate or the maximum allowable Medicaid fee‑for‑service rates for durable medical equipment and supplies, orthotics, and prosthetics.



 



EXTEND PHARMACY REIMBURSEMENT RATES IN MEDICAID MANAGED CARE



SECTION 9E.8.  Section 9D.19A of S.L. 2021‑180, as amended by Section 9D.8 of S.L. 2022‑74, reads as rewritten:



SECTION 9D.19A.(a)  Notwithstanding G.S. 108D‑65(6)b., for the prepaid health plan capitated contracts required under Article 4 of Chapter 108D of the General Statutes, the reimbursement for the ingredient cost for covered outpatient drugs and the professional drug dispensing fee shall be set at one hundred percent (100%) of the Medicaid pharmacy fee‑for‑service reimbursement methodologies in Attachment 4.19‑B of section 12 of the Medicaid State Plan under Title XIX of the Social Security Act Medicaid Assistance Program, as filed with, and approved by, the Centers for Medicare and Medicaid Services. The National Average Drug Acquisition Cost (NADAC), when applicable and as allowed under the Medicaid State Plan, plus a professional dispensing fee based on the cost of the dispensing study conducted on behalf of the North Carolina Department of Health and Human Services, Division of Health Benefits, will serve as the primary method utilized for reimbursement for retail community pharmacy claims not dispensed utilizing covered outpatient drugs acquired through the 340B drug discount program established under 42 U.S.C. § 256b. All claims utilizing drugs acquired through the 340B drug discount program shall be reimbursed in accordance with the CMS‑approved Medicaid State Plan.



SECTION 9D.19A.(b)  This section is effective when it becomes law and expires June 30, 2026.2031.



 



ENSURE MEDICAID RECEIPTS FOR NC HEALTH WORKS IMPLEMENTATION COSTS



SECTION 9E.9.(a)  For purposes of calculating the public hospital health advancement assessments and the private hospital health advancement assessments under Part 3 of Article 7B of Chapter 108A of the General Statutes, for the assessment quarter in which this subsection becomes effective, any reference to total nonfederal receipts for health advancement in that Part shall be to the calculation in this subsection, notwithstanding the calculation under G.S. 108A‑147.3(b). The amount of the total nonfederal receipts for health advancement shall be calculated by adding all of the following:



(1)        The presumptive service cost component calculated under G.S. 108A‑147.5.



(2)        The HASP health advancement component calculated under G.S. 108A‑147.6.



(3)        The administration component calculated under G.S. 108A‑147.7.



(4)        The State retention component under G.S. 108A‑147.9.



(5)        The positive or negative health advancement reconciliation adjustment component calculated under G.S. 108A‑147.11(a).



(6)        Twelve million eight hundred thousand dollars ($12,800,000).



SECTION 9E.9.(b)  Notwithstanding the limitation on the use of funds under G.S. 108A‑147.13(a), DHHS may use twelve million eight hundred thousand dollars ($12,800,000) of the receipts collected under Part 3 of Article 7B of Chapter 108A of the General Statutes during the 2024‑2025 fiscal year for the Medicaid program.



SECTION 9E.9.(c)  No later than September 1, 2024, DHHS shall submit to the Joint Legislative Oversight Committee on Medicaid and the Fiscal Research Division a report that details the amount of funds that DHHS provided to each county department of social services from funding sources other than the proceeds of the health advancement assessments during the 2022‑2023 fiscal year and the 2023‑2024 fiscal year for the implementation of NC Health Works under Section 1.1 of S.L. 2023‑7 and the date that those amounts were provided to each county department of social services.



SECTION 9E.9.(d)  Subsections (a) and (b) of this section are effective on the first day of the next assessment quarter after this act becomes law.



 



ENSURE CERTAIN MEDICAID RECEIPTS



SECTION 9E.10.(a)  For purposes of calculating the public hospital modernized assessments and the private hospital modernized assessments under Part 2 of Article 7B of Chapter 108A of the General Statutes, for the assessment quarter in which this subsection becomes effective, any reference to total modernized nonfederal receipts in that Part shall be to the calculation in this subsection, notwithstanding the calculation under G.S. 108A‑146.5(b). The amount of the total modernized nonfederal receipts shall be calculated by adding all of the following:



(1)        One‑fourth of the State's annual Medicaid payment as defined in G.S. 108A‑145.3.



(2)        The managed care component under G.S. 108A‑146.7.



(3)        The fee‑for‑service component under G.S. 108A‑146.9.



(4)        The modernized HASP component under G.S. 108A‑146.10.



(5)        The GME component under G.S. 108A‑146.11.



(6)        The postpartum coverage component under G.S. 108A‑146.12.



(7)        Ten million seven hundred fifty thousand dollars ($10,750,000).



SECTION 9E.10.(b)  Notwithstanding the limitation on the use of funds under G.S. 108A‑146.15, the Department of Health and Human Services may use up to ten million seven hundred fifty thousand dollars ($10,750,000) of the receipts collected under Part 2 of Article 7B of Chapter 108A of the General Statutes during the 2024‑2025 fiscal year for the Medicaid program.



SECTION 9E.10.(c)  Subsections (a) and (b) of this section are effective on the first day of the next assessment quarter after this act becomes law.



 



MEDICAID HASP REIMBURSEMENT FOR PSYCHIATRIC HOSPITALS



SECTION 9E.11.(a)  G.S. 108A‑148.1(a) reads as rewritten:



(a)      The healthcare access and stabilization program is a directed payment program that provides acute care hospitals with increased reimbursements funded through hospital assessments in accordance with this section. Upon the approval of CMS, the healthcare access and stabilization program directed payment program shall additionally provide qualifying freestanding psychiatric hospitals with increased reimbursements funded through hospital assessments. A qualifying freestanding psychiatric hospital is a freestanding psychiatric hospital as defined in G.S. 108A‑145.3 that is Medicare‑certified and submits Hospital Cost Report Information System cost report data to CMS.



SECTION 9E.11.(b)  The Department of Health and Human Services shall submit a 42 C.F.R. § 438.6(c) preprint requesting approval to include freestanding psychiatric hospitals in the healthcare access and stabilization program (HASP) authorized under G.S. 108A‑148.1, as amended by subsection (a) of this section.



SECTION 9E.11.(c)  G.S. 108A‑145.3 reads as rewritten:



§ 108A‑145.3.  Definitions.



The following definitions apply in this Article:



…



(6c)      Freestanding psychiatric hospital. – A hospital facility that is (i) licensed under Article 2 of Chapter 122C of the General Statutes, (ii) primarily engaged in providing to inpatients, by or under the supervision of a physician, psychiatric services for the diagnosis and treatment of individuals with mental illnesses, and (iii) not State‑owned and State‑operated.



(6d)     HASP directed payments. – Payments made by the Department to prepaid health plans to be used for (i) increased reimbursements to hospitals under the HASP program and (ii) the costs to prepaid health plans from the gross premiums tax under G.S. 105‑228.5 and the insurance regulatory charge under G.S. 58‑6‑25 associated with those hospital reimbursements.



(6d)(6e)     Healthcare access and stabilization program (HASP). – The directed payment program providing increased reimbursements to acute care hospitals and freestanding psychiatric hospitals as approved by CMS and authorized by G.S. 108A‑148.1.



….



SECTION 9E.11.(d)  G.S. 108A‑146.1 reads as rewritten:



§ 108A‑146.1.  Public hospital modernized assessment.



(a)        The public hospital modernized assessment imposed under this Part shall apply to all public acute care hospitals.



(b)        The public hospital modernized assessment shall be assessed as a percentage of each public acute care hospital's hospital costs. The assessment percentage shall be calculated quarterly by the Department of Health and Human Services in accordance with this Part. The percentage for each quarter shall equal the aggregate acute care hospital modernized assessment collection amount under G.S. 108A‑146.5 multiplied by the public hospital historical assessment share and divided by the total hospital costs for all public acute care hospitals holding a license on the first day of the assessment quarter.



SECTION 9E.11.(e)  G.S. 108A‑146.3 reads as rewritten:



§ 108A‑146.3.  Private hospital modernized assessment.



(a)        The private hospital modernized assessment imposed under this Part shall apply to all private acute care hospitals.



(b)        The private hospital modernized assessment shall be assessed as a percentage of each private acute care hospital's hospital costs. The assessment percentage shall be calculated quarterly by the Department of Health and Human Services in accordance with this Part. The percentage for each quarter shall equal the aggregate acute care hospital modernized assessment collection amount under G.S. 108A‑146.5 multiplied by the private hospital historical assessment share and divided by the total hospital costs for all private acute care hospitals holding a license on the first day of the assessment quarter.



SECTION 9E.11.(f)  Part 2 of Article 7B of Chapter 108A of the General Statutes is amended by adding a new section to read:



§ 108A‑146.4.  Freestanding psychiatric hospital modernized assessment.



(a)        The freestanding psychiatric hospital modernized assessment imposed under this Part shall apply to all freestanding psychiatric hospitals.



(b)        The freestanding psychiatric hospital modernized assessment shall be assessed as a percentage of each freestanding psychiatric hospital's hospital costs. The assessment percentage shall be calculated quarterly by the Department of Health and Human Services in accordance with this Part. The percentage for each quarter shall equal the modernized freestanding psychiatric hospital HASP component under G.S. 108A‑146.10A divided by the total hospital costs for all freestanding psychiatric hospitals holding a license on the first day of the assessment quarter.



SECTION 9E.11.(g)  G.S. 108A‑146.5 reads as rewritten:



§ 108A‑146.5.  Aggregate acute care hospital modernized assessment collection amount.



(a)        The aggregate modernized assessment collection amount is an amount of money that is calculated by subtracting the modernized intergovernmental transfer adjustment component under G.S. 108A‑146.13 from the total modernized nonfederal receipts under subsection (b) of this section and then adding the positive or negative amount of the modernized IGT actual receipts adjustment component under G.S. 108A‑146.14.



(b)        The total modernized nonfederal receipts is the sum of all of the following:



(1)        One‑fourth of the State's annual Medicaid payment.



(2)        The managed care component under G.S. 108A‑146.7.



(3)        The fee‑for‑service component under G.S. 108A‑146.9.



(3a)      The modernized acute care hospital HASP component under G.S. 108A‑146.10.



(3b)      The modernized freestanding psychiatric hospital HASP component under G.S. 108A‑146.10A.



(4)        The GME component under G.S. 108A‑146.11.



(5)        Beginning April 1, 2022, and ending March 31, 2027, the postpartum coverage component under G.S. 108A‑146.12.



(6)        Beginning April 1, 2024, the home and community‑based services component under G.S. 108A‑146.12A.



(c)        The aggregate acute care hospital modernized assessment collection amount is an amount of money equal to the aggregate modernized assessment collection amount under subsection (a) of this section minus the modernized freestanding psychiatric hospital HASP component under G.S. 108A‑146.10A.



SECTION 9E.11.(h)  G.S. 108A‑146.10 reads as rewritten:



§ 108A‑146.10.  Modernized acute care hospital HASP component.



The modernized acute care hospital HASP component is an amount of money that is calculated each quarter by multiplying the aggregate amount of HASP directed payments due to PHPs in the current quarter for hospital reimbursements to acute care hospitals that are not attributable to newly eligible individuals by the nonfederal share for not newly eligible individuals.



SECTION 9E.11.(i)  Part 2 of Article 7B of Chapter 108A of the General Statutes is amended by adding a new section to read:



§ 108A‑146.10A.  Modernized freestanding psychiatric hospital HASP component.



The modernized freestanding psychiatric hospital HASP component is an amount of money that is calculated each quarter by multiplying the aggregate amount of HASP directed payments due to PHPs in the current quarter for reimbursements to freestanding psychiatric hospitals that are not attributable to newly eligible individuals by the nonfederal share for not newly eligible individuals.



SECTION 9E.11.(j)  G.S. 108A‑146.13 reads as rewritten:



§ 108A‑146.13.  Modernized presumptive IGT adjustment component.



…



(c)        The modernized presumptive IGT adjustment component is an amount of money equal to the sum of all of the following subcomponents:



(1)        The public hospital IGT subcomponent is the total of the following amounts:



a.         Sixteen and forty‑three hundredths percent (16.43%) of the amount of money that is equal to the total modernized nonfederal receipts under G.S. 108A‑146.5(b) for the current quarter minus the modernized acute care hospital HASP component under G.S. 108A‑146.10 for the current quarter and minus the modernized freestanding psychiatric hospital HASP component under G.S. 108A‑146.10A for the current quarter.



b.         Sixty percent (60%) of the nonfederal share for not newly eligible individuals of the aggregate amount of HASP directed payments due to PHPs in the current quarter for reimbursements to public acute care hospitals and that are not attributable to newly eligible individuals.



(2)        The UNC Health Care System IGT subcomponent is the total of the following amounts:



a.         Four and sixty‑two hundredths percent (4.62%) of the difference of amount of money that is equal to the total modernized nonfederal receipts under G.S. 108A‑146.5(b) for the current quarter minus the modernized acute care hospital HASP component under G.S. 108A‑146.10 for the current quarter and minus the modernized freestanding psychiatric hospital HASP component under G.S. 108A‑146.10A for the current quarter.



b.         The nonfederal share for not newly eligible individuals of the aggregate amount of HASP directed payments due to PHPs in the current quarter for reimbursements to UNC Health Care System hospitals that are not attributable to newly eligible individuals.



(3)        The East Carolina University IGT subcomponent is the total of the following amounts:



a.         One and four hundredths percent (1.04%) of the difference of amount of money that is equal to the total modernized nonfederal receipts under G.S. 108A‑146.5(b) for the current quarter minus the modernized acute care hospital HASP component under G.S. 108A‑146.10 for the current quarter and minus the modernized freestanding psychiatric hospital HASP component under G.S. 108A‑146.10A for the current quarter.



b.         The nonfederal share for not newly eligible individuals of the aggregate amount of HASP directed payments due to PHPs in the current quarter for reimbursements to the primary affiliated teaching hospital for the East Carolina University Brody School of Medicine that are not attributable to newly eligible individuals.



SECTION 9E.11.(k)  G.S. 108A‑147.1 reads as rewritten:



§ 108A‑147.1.  Public hospital health advancement assessment.



(a)        The public hospital health advancement assessment imposed under this Part shall apply to all public acute care hospitals.



(b)        The public hospital health advancement assessment shall be assessed as a percentage of each public acute care hospital's hospital costs. The assessment percentage shall be calculated quarterly by the Department in accordance with this Part. The percentage for each quarter shall equal the aggregate acute care hospital health advancement assessment collection amount calculated under G.S. 108A‑147.3 multiplied by the public hospital historical assessment share and divided by the total hospital costs for all public acute care hospitals holding a license on the first day of the assessment quarter.



SECTION 9E.11.(l)  G.S. 108A‑147.2 reads as rewritten:



§ 108A‑147.2.  Private hospital health advancement assessment.



(a)        The private hospital health advancement assessment imposed under this Part shall apply to all private acute care hospitals.



(b)        The private hospital health advancement assessment shall be assessed as a percentage of each private acute care hospital's hospital costs. The assessment percentage shall be calculated quarterly by the Department in accordance with this Part. The percentage for each quarter shall equal the aggregate acute care hospital health advancement assessment collection amount calculated under G.S. 108A‑147.3 multiplied by the private hospital historical assessment share and divided by the total hospital costs for all private acute care hospitals holding a license on the first day of the assessment quarter.



SECTION 9E.11.(m)  Part 3 of Article 7B of Chapter 108A of the General Statutes is amended by adding a new section to read:



§ 108A‑147.2A.  Freestanding psychiatric hospital health advancement assessment.



(a)        The freestanding psychiatric hospital health advancement assessment imposed under this Part shall apply to all freestanding psychiatric hospitals.



(b)        The freestanding psychiatric hospital health advancement assessment shall be assessed as a percentage of each freestanding psychiatric hospital's hospital costs. The assessment percentage shall be calculated quarterly by the Department in accordance with this Part. The percentage for each quarter shall equal the health advancement freestanding psychiatric hospital HASP component calculated under G.S. 108A‑147.6A divided by the total hospital costs for all freestanding psychiatric hospitals holding a license on the first day of the assessment quarter.



SECTION 9E.11.(n)  G.S. 108A‑147.3 reads as rewritten:



§ 108A‑147.3.  Aggregate acute care hospital health advancement assessment collection amount.



(a)        The aggregate health advancement assessment collection amount is an amount of money that is calculated quarterly by adjusting the total nonfederal receipts for health advancement calculated under subsection (b) of this section by (i) subtracting the health advancement presumptive IGT adjustment component calculated under G.S. 108A‑147.9, (ii) adding the positive or negative health advancement IGT actual receipts adjustment component calculated under G.S. 108A‑147.10, and (iii) subtracting the positive or negative IGT share of the reconciliation adjustment component calculated under G.S. 108A‑147.11(b).



(b)        The total nonfederal receipts for health advancement is an amount of money that is calculated quarterly by adding all of the following:



(1)        The presumptive service cost component calculated under G.S. 108A‑147.5.



(2)        The HASP health advancement acute care hospital HASP component calculated under G.S. 108A‑147.6.



(2a)      The health advancement freestanding psychiatric hospital HASP component calculated under G.S. 108A‑147.6A.



(3)        The administration component calculated under G.S. 108A‑147.7.



(4)        The State retention component under G.S. 108A‑147.9.



(5)        The positive or negative health advancement reconciliation adjustment component calculated under G.S. 108A‑147.11(a).



(c)        The aggregate acute care hospital health advancement assessment collection amount is an amount of money equal to the aggregate health advancement assessment collection amount under subsection (a) of this section minus the health advancement freestanding psychiatric hospital HASP component under G.S. 108A‑147.6A.



SECTION 9E.11.(o)  G.S. 108A‑147.5 reads as rewritten:



§ 108A‑147.5.  Presumptive service cost component.



(a)        For every State fiscal quarter prior to the fiscal quarter in which G.S. 108A‑54.3A(24) becomes effective, the presumptive service cost component is zero.



(b)        For the State fiscal quarter in which G.S. 108A‑54.3A(24) becomes effective, the presumptive service cost component is the product of forty‑eight million seven hundred fifty thousand dollars ($48,750,000) multiplied by the number of months in that State fiscal quarter in which G.S. 108A‑54.3A(24) is effective during any part of the month.



(c)        For the first State fiscal quarter after the State fiscal quarter in which G.S. 108A‑54.3A(24) becomes effective, the presumptive service cost component is one hundred forty‑six million two hundred fifty thousand dollars ($146,250,000).



(d)       For the second State fiscal quarter after the State fiscal quarter in which G.S. 108A‑54.3A(24) becomes effective, and for each State fiscal quarter thereafter, the presumptive service cost component is an amount of money that is the greatest of the following:



(1)        The prior quarter's presumptive service cost component amount.



(2)        The prior quarter's presumptive service cost component amount increased by a percentage that is the sum of each monthly percentage change in the Consumer Price Index: Medical Care for the most recent three months available on the first day of the current quarter.



(3)        The prior quarter's presumptive service cost component amount increased by the percentage change in the weighted average of the base capitation rates for standard benefit plans for all rating groups associated with newly eligible individuals compared to the prior quarter. The weight for each rating group shall be calculated using member months documented in the Medicaid managed care capitation rate certification for standard benefit plans.



(4)        The prior quarter's presumptive service cost component amount increased by the percentage change in the weighted average of the base capitation rates for BH IDD tailored plans for all rating groups associated with newly eligible individuals compared to the prior quarter. The weight for each rating group shall be calculated using member months documented in the Medicaid managed care capitation rate certification for BH IDD tailored plans.



(5)        The amount produced from multiplying 1.15 by the highest amount produced when calculating, for each quarter that is at least two and not more than five quarters prior to the current quarter, the actual nonfederal expenditures for the applicable quarter minus the HASP health advancement acute care hospital HASP component calculated under G.S. 108A‑147.6 for the applicable quarter and minus the health advancement freestanding psychiatric hospital HASP component calculated under G.S. 108A‑147.6A for the applicable quarter.



SECTION 9E.11.(p)  G.S. 108A‑147.6 reads as rewritten:



§ 108A‑147.6.  HASP health Health advancement acute care hospital HASP component.



The HASP health advancement acute care hospital HASP component is an amount of money that is calculated by multiplying the aggregate amount of HASP directed payments due to PHPs in the current quarter for hospital reimbursements to acute care hospitals attributable to newly eligible individuals by the nonfederal share for newly eligible individuals.



SECTION 9E.11.(q)  Part 3 of Article 7B of Chapter 108A of the General Statutes is amended by adding a new section to read:



§ 108A‑147.6A.  Health advancement freestanding psychiatric hospital HASP component.



The health advancement freestanding psychiatric hospital HASP component is an amount of money that is calculated by multiplying the aggregate amount of HASP directed payments due to PHPs in the current quarter for reimbursements to freestanding psychiatric hospitals attributable to newly eligible individuals by the nonfederal share for newly eligible individuals.



SECTION 9E.11.(r)  G.S. 108A‑147.11 reads as rewritten:



§ 108A‑147.11.  Health advancement reconciliation adjustment component.



(a)        The health advancement reconciliation adjustment component is a positive or negative dollar amount equal to the actual nonfederal expenditures for the quarter that is two quarters prior to the current quarter minus the sum of the following specified amounts:



(1)        The presumptive service cost component calculated under G.S. 108A‑147.5 for the quarter that is two quarters prior to the current quarter.



(2)        The positive or negative gross premiums tax offset amount calculated under G.S. 108A‑147.12(b).



(3)        The HASP health advancement acute care hospital HASP component calculated under G.S. 108A‑147.6 for the quarter that is two quarters prior to the current quarter.



(4)        The health advancement freestanding psychiatric hospital HASP component calculated under G.S. 108A‑147.6A for the quarter that is two quarters prior to the current quarter.



(b)        The IGT share of the reconciliation adjustment component is a positive or negative dollar amount that is calculated by multiplying the health advancement reconciliation adjustment component calculated under subsection (a) of this section by the share of public hospital costs calculated under subsection (c) of this section.



(c)        The share of public hospital costs is calculated by adding total hospital costs for the UNC Health Care System, total hospital costs for the primary affiliated teaching hospital for the East Carolina University Brody School of Medicine, and sixty percent (60%) of the total hospital costs for all public acute care hospitals and dividing that sum by the total hospital costs for all acute care hospitals except for critical access hospitals.



SECTION 9E.11.(s)  Subsections (c) through (r) of this section are effective on the first day of the second assessment quarter after the date this act becomes law and apply to assessments imposed on or after that date. The remainder of this section is effective when it becomes law.



 



REDUCING USE OF INAPPROPRIATE SETTINGS FOR DELIVERY OF BEHAVIORAL HEALTH SERVICES



SECTION 9E.12.(a)  Section 9D.22 of S.L. 2021‑180, as amended by Section 9D.9 of S.L. 2022‑74 and Section 9E.19 of S.L. 2023‑134, expires July 1, 2024.



SECTION 9E.12.(b)  No later than October 1, 2024, the Department of Health and Human Services (DHHS) shall report to the Joint Legislative Oversight Committee on Health and Human Services and the Joint Legislative Oversight Committee on Medicaid on DHHS's recent efforts to address the issue of the inappropriate use of acute care hospital settings for the delivery of behavioral health services. The report shall include all of the following:



(1)        Actions DHHS has taken, and plans to take, during the 2023‑2025 fiscal biennium to address this issue.



(2)        An analysis of any gaps that will remain once current plans are implemented, as well as any additional authority, resources, and funding needed to address those gaps.



(3)        Any impact, or anticipated impact, from the implementation of behavioral health and intellectual/developmental disabilities tailored plans on this issue.



(4)        The metrics DHHS uses and will use to measure the effectiveness of actions taken to address this issue.



(5)        Any measurable progress toward addressing this issue.



 



EXTENDING and clarifying PRIMARY CARE PAYMENT REFORM TASK FORCE



SECTION 9E.13.  Section 9E.28 of S.L. 2023‑134 reads as rewritten:



SECTION 9E.28.(a)  There is established the North Carolina Primary Care Payment Reform Task Force (Task Force) within the Department of Health and Human Services, Division of Health Benefits, for budgetary purposes only.



…



SECTION 9E.28.(b)  The Task Force established under subsection (a) of this section shall have the following duties:



(1)        Establish a definition of primary care to be utilized by the Task Force. This term should be applicable to services and care provided under the NC Medicaid program, the State Health Plan, and commercial insurance. Nothing in this subdivision shall be construed as requiring the use of this definition in administering the State Health Plan under Article 3B of Chapter 135 of the General Statutes.



(2)        Conduct an actuarial evaluation of the current healthcare spend on primary care services, both as it relates to the NC Medicaid program and the commercial market, including Medicare Advantage plans.



(3)        Determine the adequacy of the primary care delivery system in North Carolina, including the impact this system has on the supply of the primary care providers in this State.



(4)        Study the primary care payment landscape in other states, specifically considering states that have implemented a minimum primary care spend.



(5)        Identify data collection and measurement systems to inform creation of a primary care investment target for the NC Medicaid program, the State Health Plan, and commercial insurance. This includes a method by which to measure improvements made toward that target.



(5a)      Collect and compile data and other information related to healthcare spend on primary care services in a manner that is compliant with HIPAA, the Health Insurance Portability and Accountability Act of 1996. Within 30 days of a request for data or information from the Task Force, all entities shall comply with the Task Force's request to the extent allowable under federal or State law.



(6)        Evaluate the need for a permanent Primary Care Payment Reform Task Force, or other similar entity, including which State agency or body is best suited to oversee the work of that group.



(7)        Perform any other studies, evaluations, or determinations the Task Force considers necessary.



SECTION 9E.28.(b1)  The Department of Health and Human Services shall develop, and the Task Force and the Department of Health and Human Services shall implement, a detailed data security and safeguarding plan for the data requested pursuant to subsection (b) of this section that includes all of the following:



(1)        Guidelines for authorizing access to the data, including guidelines for authentication of authorized access.



(2)        Privacy compliance standards.



(3)        Privacy and security audits.



(4)        Breach planning, notification, and procedures.



(5)        Data retention and disposition policies.



(6)        Data security policies, including electronic, physical, and administrative safeguards such as data encryption and training of employees.



SECTION 9E.28.(b2)  The data collected by the Task Force under subsection (b) of this section, regardless of where it is housed, shall not be considered a public record within the meaning of Chapter 132 of the General Statutes.



SECTION 9E.28.(c)  No later than April 1, 2024, and December 1, 2025, the Task Force shall submit a report with its findings and recommendations to the Joint Legislative Oversight Committee on Health and Human Services and the Joint Legislative Oversight Committee on Medicaid. These findings and recommendations shall include specific, concrete, and actionable steps to be undertaken by the State and upon which the General Assembly could act.



SECTION 9E.28.(d)  This section shall expire on May 1, 2024.2026.



 



PART IX‑F. HEALTH SERVICE REGULATION



 



PART IX‑G. MENTAL HEALTH/DEVELOPMENTAL DISABILITIES/SUBSTANCE USE SERVICES



 



ALLOW TRANSFER FOR SINGLE‑STREAM FUNDING FOR Fiscal year 2024‑2025



SECTION 9G.1.  Section 9G.1 of S.L. 2023‑134 is amended by adding a new subsection to read:



SECTION 9G.1.(c)  If, on or after June 1, 2025, the Office of State Budget Management (OSBM) certifies a Medicaid budget surplus and sufficient cash in Budget Code 14445 to meet total obligations for the 2024‑2025 fiscal year, then DHB shall transfer to DMH/DD/SUS funds not to exceed the amount of the certified surplus or thirty million dollars ($30,000,000), whichever is less, to be used for single‑stream funding.



 



Use of Opioid Settlement Funds



SECTION 9G.2.(a)  Section 9G.8 of S.L. 2023‑134 reads as rewritten:



SECTION 9G.8.(a)  Definitions. – The following definitions apply in this section:



(1)        Department. – The Department of Health and Human Services.



(2)        Opioid Abatement Fund. – The Fund created by Section 9F.1 of S.L. 2021‑180, as amended by Section 9F.1 of S.L. 2022‑74.



(3)        Opioid Abatement Reserve. – The Reserve created by Section 9F.1 of S.L. 2021‑180, as amended by Section 9F.1 of S.L. 2022‑74.



SECTION 9G.8.(b)  Funds Transferred to the Board of Governors of The University of North Carolina. – The State Controller shall transfer from funds available in the Opioid Abatement Reserve to the Board of Governors of The University of North Carolina the sum of five million five hundred thousand dollars ($5,500,000) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of five million five hundred thousand dollars ($5,500,000) in nonrecurring funds for the 2024‑2025 fiscal year. The funds transferred are appropriated for the fiscal year in which they are transferred for allocation to the University of North Carolina at Chapel Hill for the North Carolina Collaboratory to be used as follows:



(1)        Three hundred thousand dollars ($300,000) in nonrecurring funds for the 2023‑2024 fiscal year to conduct the study on judicially managed accountability and recovery courts authorized by Section 8.11 of this act.



(2)        Five million two hundred thousand dollars ($5,200,000) in nonrecurring funds for the 2023‑2024 fiscal year and five million five hundred thousand dollars ($5,500,000) in nonrecurring funds for the 2024‑2025 fiscal year to make grants available on a competitive basis prescribed by the North Carolina Collaboratory to each campus of the constituent institutions of The University of North Carolina for opioid abatement research and development projects.



SECTION 9G.8.(c)  Funds Transferred to the Department of Health and Human Services. – The State Controller shall transfer from funds available in the Opioid Abatement Reserve to the Opioid Abatement Fund the sum of three million six hundred ninety‑two thousand four hundred sixty‑one dollars ($3,692,461) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of four million four hundred seventy‑eight thousand four hundred sixty‑two dollars ($4,478,462) forty‑one million one hundred sixty‑eight thousand eight hundred twelve dollars ($41,168,812) in nonrecurring funds for the 2024‑2025 fiscal year. The funds transferred are appropriated for the fiscal year in which they are transferred to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Use Services, Services (DMH/DD/SUS), to be allocated and used as follows:



(1)        The sum of three million six hundred ninety‑two thousand four hundred sixty‑one dollars ($3,692,461) in nonrecurring funds for the 2023‑2024 fiscal year and the sum of thirty‑five million eighteen thousand eight hundred twelve dollars ($35,018,812) for the 2024‑2025 fiscal year to be used to award directed grants according to the following schedule:



 



Name of Recipient Entity                                              2023‑2024                 2024‑2025



 



(1)     Addiction Professionals of North Carolina, Inc.                 $200,000                                $0



(2)     Adult & Teen Challenge of Sandhills, North Carolina        $0                                  $78,462$578,462



         Ashe County                                                                        $0                                $700,000



         Bertie County                                                                      $0                             $1,000,000



         Bethel Colony of Mercy, Inc.                                              $0                                $700,000



         Bladen County                                                                     $0                             $1,000,000



(3)     Bridge to Recovery, Inc.                                                      $1,000,000                             $0



         Brunswick County                                                               $0                             $1,000,000



         Camden County                                                                   $0                             $1,000,000



         Charlotte Rescue Mission                                                    $0                             $1,000,000



         Chowan County                                                                   $0                             $1,000,000



         Christian Recovery Centers, Inc.                                         $0                             $1,400,000



(4)     Clay County                                                                         $0                             $1,000,000



(5)     Columbus Regional Healthcare System                              $0                             $1,400,000



         Dare County                                                                        $0                             $1,000,000



         Duplin County                                                                     $0                             $1,000,000



(6)     Freedom Farm Ministries                                                     $950,000                                $0



         Freedom House                                                                    $0                                $500,000



         Gateway of Hope Addiction Recovery Center                    $0                                  $20,175



         Graham County                                                                   $0                                $900,000



(7)     Ground 40 Ministries                                                           $750,000                                $0



         Halifax County                                                                    $0                             $1,000,000



         Henderson County                                                               $0                             $1,000,000



         Hyde County                                                                       $0                             $1,000,000



         Jones County                                                                       $0                                $500,000



         Lenoir County                                                                     $0                             $1,000,000



         Macon County                                                                     $0                                $500,000



         Montgomery County                                                                                            $1,500,000



         Multiply Church Global                                                       $0                                $500,000



         New Hanover County                                                          $0                             $1,000,000



         New Life Christian Ministries of the Carolinas, Inc.          $0                                $300,000



         North Carolina Association for the Treatment of



            Opioid Dependence                                                          $0                                $500,000



         North Carolina Association of Pharmacists                         $0                             $1,000,000



         Northampton County                                                           $0                             $1,000,000



         Onslow County                                                                    $0                             $1,000,000



(8)     Pamlico County                                                                   $0                             $1,000,000



         Pasquotank County                                                              $0                                $500,000



         Pender County                                                                     $0                             $1,000,000



         Rockingham County                                                            $0                             $1,000,000



(9)     Safer Communities Ministry, Inc.                                       $400,000                                $0



         Teen Challenge North Carolina Adolescent Program         $0                                $500,000



(10)   The Samaritan Colony, Inc.                                                 $300,000                                $0



(11)   Solus Christus                                                                      $92,461                                  $0



         Stokes County                                                                     $0                             $1,000,000



(12)   Surry County                                                                       $0                             $1,000,000



         Tyrrell County                                                                     $0                             $1,000,000



         Washington County                                                             $0                             $1,000,000



         Will's Place, Inc.                                                                  $0                                  $20,175



(2)        The sum of one million one hundred fifty thousand dollars ($1,150,000) in nonrecurring funds for the 2024‑2025 fiscal year to be used to fund remediation programs, services, and activities the DMH/DD/SUS deems necessary to respond to the negative impacts of the opioid epidemic within the State. In addition, and notwithstanding Section 9F.1(c)(1)a. of S.L. 2022‑74, the Committee Report described in Section 43.2 of that act, or any other provision of law to the contrary, the sum of one million eight hundred fifty thousand dollars ($1,850,000) in nonrecurring funds appropriated to the DMH/DD/SUS for the 2022‑2023 fiscal year for the Prescription Digital Therapeutics Pilot Program authorized by Section 9F.2 of S.L. 2022‑74 shall instead be used to fund remediation programs, services, and activities the DMH/DD/SUS deems necessary to respond to the negative impacts of the opioid epidemic within the State. The Department of Health and Human Services may use the funds allocated by this subdivision to (i) award directed grants, (ii) transfer funds to other divisions within the Department of Health and Human Services in the amounts and for the programs, services, and activities the Department of Health and Human Services deems necessary, or (iii) a combination of these options as long as any directed grants, programs, services, and activities funded by this subdivision are consistent with the purposes specified in this subdivision.



(3)        The sum of three hundred forty thousand dollars ($340,000) in nonrecurring funds for the 2024‑2025 fiscal year to be used to purchase opioid antagonist nasal spray for local health departments. Local health departments shall distribute the opioid antagonist nasal spray funded by this subdivision to public school units. Once all public school units have received an initial supply of opioid antagonist nasal spray, any remaining funds allocated by this subdivision shall be used to purchase an additional supply of opioid antagonist nasal spray for local health departments to distribute to public school units that have used their initial supply. As used in this subdivision, the term opioid antagonist nasal spray means a disposable drug delivery system that disperses a solution of opioid antagonist, as defined in G.S. 90‑12.7, into the respiratory system through the nose to provide rapid, critical first aid for persons suffering a potentially fatal opioid or fentanyl emergency. The Department of Health and Human Services may transfer these allocated funds to the Division of Public Health to be used as specified in this subdivision.



(4)        The sum of four million six hundred sixty thousand dollars ($4,660,000) in nonrecurring funds to be transferred to the Division of Public Health to be used as follows:



a.         The sum of three million six hundred sixty thousand dollars ($3,660,000) in nonrecurring funds shall be used to purchase units of opioid antagonist, as defined in G.S. 90‑12.7, to be distributed free of charge statewide, prioritizing counties located in rural or underserved areas and law enforcement agencies serving those areas.



b.         The sum of one million dollars ($1,000,000) in nonrecurring funds shall be used to purchase units of injectable opioid antagonist, as defined in G.S. 90‑12.7, to be distributed free of charge statewide to EMS providers licensed under G.S. 131E 155.1.



SECTION 9G.8.(c1)  Funds Transferred to the Department of Adult Correction. – The State Controller shall transfer from funds available in the Opioid Abatement Reserve to the Department of Adult Correction the sum of four million dollars ($4,000,000) in nonrecurring funds for the 2024‑2025 fiscal year. The funds transferred are appropriated for the fiscal year in which they are transferred to be used to expand the use of medication‑assisted treatment for opioid use disorder in correctional institutions.



SECTION 9G.8.(d)  Limitation on the Use of Funds. – Recipients of funds allocated under subsection (c) of this section shall not use these funds for any purpose other than to fund opioid remediation programs, services, and activities to respond to the negative impacts of the opioid epidemic within the State of North Carolina.



SECTION 9G.8.(e)  Reports on the Use of Funds. – By September 1, 2024, recipients of funds allocated under subsection (c) of this section for the 2023‑2024 fiscal year, and by September 1, 2025, recipients of directed grant funds allocated under subsection (c) of this section for the 2024‑2025 fiscal year shall report to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Use Services; the Joint Legislative Oversight Committee on Health and Human Services; and the Fiscal Research Division on the use of these allocated funds. The report shall include at least all of the following for each recipient:



(1)        An itemized list of expenditures.



(2)        The types of opioid remediation programs, services, and activities funded, broken down by geographic location and the number of people served at each location.



SECTION 9G.2.(b)  In the event that the Department of Health and Human Services is unable to begin disbursement of all of the directed grant funds authorized for the 2024‑2025 fiscal year by Section 9G.8(c) of S.L. 2023‑134, as amended by this section, within the time frame specified in Section 5.3 of this act due to the unavailability of funds in the Opioid Abatement Fund, the Department of Health and Human Services shall, within the availability of funds in the Opioid Abatement Fund, begin disbursement of as many directed grant funds as possible within the time frame specified in Section 5.3 of this act. As additional funds are deposited into the Opioid Abatement Fund, the Department of Health and Human Services shall begin disbursement of as many additional directed grant funds as possible given the availability of funds in the Opioid Abatement Fund no later than 30 days after each additional deposit.



SECTION 9G.2.(c)  Effective retroactively to July 1, 2021, and notwithstanding any other provision of law to the contrary, funds received by the State (i) as a result of a settlement, as defined in G.S. 114‑2.4A, relating to claims regarding the manufacturing, marketing, distribution, dispensing, or sale of opioids or (ii) as a beneficiary of a confirmation order by a bankruptcy court relating to claims regarding the manufacturing, marketing, distribution, dispensing, or sale of opioids do not constitute State funds for the purpose of determining whether a facility is excluded from licensure under G.S. 122C‑22(a)(11).



SECTION 9G.2.(d)  Section 9F.2 of S.L. 2022‑74 is repealed.



 



PART IX‑H. PUBLIC HEALTH



 



EXTENSION OF GRANT PERIOD FOR COMPETITIVE GRANTS AWARDED TO LOCAL HEALTH DEPARTMENTS TO IMPROVE MATERNAL AND CHILD HEALTH



SECTION 9H.1.  Section 9H.1(b) of S.L. 2023‑134 reads as rewritten:



SECTION 9H.1.(b)  The plan for administering the competitive grant process shall include at least all of the following components:



…



(4)        Allows grants to be awarded to local health departments for up to two three years.



 



Report on RECOMMENDATIONS for a plan to improve Maternal and Infant Levels of Care in north carolina



SECTION 9H.2.  By April 1, 2025, the Department of Health and Human Services, Division of Public Health, shall report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division on recommendations for a plan to establish maternal levels of care and to update neonatal levels of care to reduce maternal and infant mortality rates within the State. The plan recommendations shall be consistent with guidelines endorsed by the American College of Obstetricians and Gynecologists, the Society for Maternal‑Fetal Medicine, the American Academy of Pediatrics, the United States Centers for Disease Control and Prevention, and the Association of Women's Health, Obstetric and Neonatal Nurses. In developing these plan recommendations, the Department of Health and Human Services, Division of Public Health, shall consult with maternal and infant health stakeholders in North Carolina, including the North Carolina Healthcare Association, the North Carolina Obstetrical and Gynecological Society, the North Carolina Pediatric Society, the North Carolina Academy of Family Physicians, the North Carolina Institute of Medicine, other organizations with expertise in this area, and individuals with lived experience.



 



Modernization of Local Health Director Qualifications



SECTION 9H.4.(a)  G.S. 130A‑40 reads as rewritten:



§ 130A‑40.  Appointment of local health director.



(a)        A local board of health, after consulting with the appropriate county board or boards of commissioners, shall appoint a local health director. All persons who are appointed to the position of local health director on or after January 1, 1992, must possess at least one of the following described minimum education and experience requirements for that position, as follows:position:



(1)        A medical doctorate; ordoctorate.



(2)        A masters degree in Public Health Administration, public health administration, and at least one year of employment experience in health programs or health services; orservices.



(3)        A masters degree in a public health discipline other than public health administration, and at least three years of employment experience in health programs or health services; orservices.



(4)        A masters degree in public administration, and at least two years of experience in health programs or health services; orservices.



(5)        A masters degree in a field related to public health, and at least three years of experience in health programs or health services; orservices.



(6)        A bachelors degree in a field related to public health administration or public administration and at least three seven years of experience in health programs or health services.services, of which at least three years includes supervisory experience.



(b)        Before appointing a person to the position of local health director under subsection subdivision (a)(5) or (a)(6) of this section, the local board of health shall forward the application and other pertinent materials of such candidate to the State Health Director. If the State Health Director determines that the candidate's masters degree is in a field not related to public health, the State Health Director shall so notify the local board of health in writing within 15 days of after the State Health Director's receipt of the application and materials, and such candidate shall be deemed not to meet the education requirements of subsection subdivision (a)(5) or (a)(6) of this section. If the State Health Director fails to act upon the application within 15 days of after receipt of the application and materials from the local board of health, the application shall be deemed approved with respect to the education requirements of subsection subdivision (a)(5) or (a)(6) of this section, and the local board of health may proceed with the appointment process.



(c)        The State Health Director shall review requests of educational institutions to determine whether a particular masters degree offered by the requesting institution is related to public health for the purposes of subsection subdivision (a)(5) or (a)(6) of this section. The State Health Director shall act upon such requests within 90 days of after receipt of the request and pertinent materials from the institution, and shall notify the institution of its determination in writing within the 90‑day review period. If the State Health Director determines that an institution's particular masters degree is not related to public health, the State Health Director shall include the reasons therefor in his the written determination to the institution.



(d)       When a local board of health fails to appoint a local health director within 60 days of after the creation of a vacancy, the State Health Director may appoint a local health director to serve until the local board of health appoints a local health director in accordance with this section.



SECTION 9H.4.(b)  This section becomes effective July 1, 2024, and applies to all persons appointed to the position of local health director on or after that date.



 



STATEWIDE CONTINUUM OF CARE PROGRAM



SECTION 9H.5.(a)  Of the funds appropriated in this act from the General Fund to the Department of Health and Human Services, Division of Public Health, for the 2024‑2025 fiscal year, the sum of one million seven hundred thousand dollars ($1,700,000) in nonrecurring funds shall be allocated as a directed grant to the Human Coalition, a nonprofit organization, to fund operation of the Human Coalition's statewide Continuum of Care Program, as expanded pursuant to Section 9G.6 of S.L. 2021‑180. These funds are in addition to the ARPA Temporary Savings Fund funds appropriated for this program for the 2024‑2025 fiscal year in Section 9H.12 of S.L. 2023‑134 and shall be used for nonreligious, nonsectarian purposes only.



SECTION 9H.5.(b)  The Human Coalition may use up to ten percent (10%) of these allocated funds for administrative purposes.



SECTION 9H.5.(c)  The Human Coalition shall include information pertaining to its use of these allocated funds in the reports due under Section 9H.12(c) of S.L. 2023‑134.



 



modified use of state fiscal recovery funds for Lead and Asbestos Remediation Programs to benefit public school units and child care facilities



SECTION 9H.6.(a)  Section 9G.8 of S.L. 2021‑180 reads as rewritten:



SECTION 9G.8.(a)  Of the funds appropriated in this act from the State Fiscal Recovery Fund to the Department of Health and Human Services, Division of Public Health, the sum of one hundred fifty million dollars ($150,000,000) in nonrecurring funds for the 2021‑2022 fiscal year shall be allocated and used as follows for lead and asbestos remediation and abatement programs to benefit public school units and child care facilities:



(1)        $32,812,500 in nonrecurring funds shall be used to To fund a voluntary program for the testing and remediation of lead levels in drinking water at participating public school units and child care facilities. As part of this program, participating public school units shall be required to test for lead levels in drinking water at their facilities, to the extent feasible and practical, following the same model for testing conducted in child care facilities pursuant to 15A NCAC 18A .2816. In addition, the program shall include at least the following components:



a.         The Department of Health and Human Services (DHHS) and the Department of Public Instruction (DPI) shall develop a mechanism for providing funding on a reimbursement basis for (i) the testing and mitigation of lead in drinking water that meets the lead poisoning hazard level, as set forth in G.S. 130A‑131.7, that is identified in public school units and child care facilities, including and (ii) the replacement of service lines, pipes, and fixtures, as needed, or for the installation of filters at affected faucets within public school units and child care facilities that test positive for lead in drinking water. Reimbursement under the program is contingent upon the participating public school unit or child care facility submitting to the DHHS or DPI, as appropriate, an invoice signed by one of its representatives as verification that the invoice accurately reflects the work completed.



b.         The Commission for Public Health, Child Care Commission, and State Board of Education shall adopt rules as necessary to implement this subdivision.



(2)        $117,187,500 in nonrecurring funds shall be used to To fund a voluntary program for lead paint abatement and asbestos abatement in public school units and child care facilities. As part of the program, participating public school units and child care facilities shall be required to conduct inspections for lead paint and asbestos hazards in their facilities. The program shall include at least the following components:



a.         DHHS and DPI shall develop a mechanism for providing funding on a reimbursement basis for lead paint abatement, asbestos inspection and abatement, or both both, in public school units and child care facilities; provided, however, that the following conditions are met:



1.         A professional accredited in accordance with G.S. 130A‑447 or certified in accordance with G.S. 130A‑453.03 determines that action must be taken in response to an inspection report.



2.         Lead paint, asbestos, or both are detected as part of an inspection or as part of a capital, renovation, or repair project that meets the lead‑based paint hazard level, as set forth in G.S. 130A‑131.7, or that meets the definition of asbestos containing material, as set forth in G.S. 130A‑444. Capital projects may include HVAC, window, or other ventilation projects related to COVID‑19 mitigation, or other capital, renovation, or repair projects undertaken during calendar years 2021 through 2024.projects.



3.         Reimbursement under the program is contingent upon the participating public school unit or child care facility submitting to the DHHS or DPI, as appropriate, an invoice signed by one of its representatives as verification that the invoice accurately reflects the work completed.



b.         A requirement that public school unit recipients of funds allocated under this subdivision shall provide matching funds in the amount of one dollar ($1.00) of local funds for every two dollars ($2.00) of State funds. This requirement does not apply to any public school unit located in a low‑wealth county, defined as a county in which one or more local school administrative units was a recipient of supplemental school funding allocated pursuant to G.S. 115C‑472.22 for the 2021‑2022 fiscal year. The DHHS shall reimburse any public school unit located in a low‑wealth county for the cost of any matching funds paid pursuant to this sub‑subdivision.



c.         The Commission for Public Health, Child Care Commission, and State Board of Education shall adopt rules as needed to implement this subdivision.



SECTION 9G.8.(b)  The Department of Health and Human Services, Division of Public Health (DPH), shall serve as the lead agency responsible for administering the programs authorized by subsection (a) of this section. In serving in this capacity, the DPH shall collaborate with (i) the Department of Public Instruction regarding administration of these programs for the benefit of public school units and charter schools and (ii) its Division of Child Development and Early Education regarding administration of these programs for the benefit of child care facilities. The DPH shall transfer funds to the Department of Public Instruction and to the Division of Child Development and Early Education as in the amounts necessary to accomplish the goals of these programs in an efficient and cost‑effective manner.



….



SECTION 9H.6.(b)  This section becomes effective July 1, 2024, and applies to all remaining unspent State Fiscal Recovery Fund funds appropriated to the Department of Health and Human Services, Division of Public Health, for the 2021‑2022 fiscal year for the lead and asbestos remediation programs authorized by Section 9G.8 of S.L. 2021‑180, as amended.



 



PART IX‑I. SERVICES FOR THE BLIND/DEAF/HARD OF HEARING



 



Amend Contract Period for the Provision of Telecommunications Relay Service



SECTION 9I.1.(a)  G.S. 62‑157(e) reads as rewritten:



(e)      Administration of Service. – The Department of Health and Human Services shall administer the statewide telecommunications relay service program, including its establishment, operation, and promotion. The Department may contract out the provision of this service for four‑year periods as determined by the Department to one or more service providers, using the provisions of G.S. 143‑129. The Department shall administer all programs and services, including the Regional Resource Centers within the Division of Services for the Deaf and the Hard of Hearing in accordance with G.S. 143B‑216.33, G.S. 143B‑216.34, and Chapter 8B of the General Statutes.



SECTION 9I.1.(b)  To provide for flexibility in contract administration, the Department of Health and Human Services, Division of Services for the Deaf and the Hard of Hearing, may contract out the provision of telecommunications relay service in accordance with G.S. 62‑157(e), as enacted by subsection (a) of this section, for a one‑year period, with options to renew the contract period for two additional years in one‑year increments.



 



PART IX‑J. SOCIAL SERVICES



 



FOSTER CARE TRAUMA‑INFORMED ASSESSMENT CORRECTIONs



SECTION 9J.1.(a)  Section 9J.12(c) of S.L. 2023‑134 reads as rewritten:



SECTION 9J.12.(c)  Plan Development. – In developing the trauma‑informed, standardized assessment, the partnership shall develop a rollout plan with a goal of implementing the trauma‑informed, standardized assessment statewide in all 100 counties. The rollout plan shall include all of the following:



(1)        The development of the trauma‑informed, standardized assessment template by March 31, 2024.September 30, 2024.



(2)        The finalized trauma‑informed, standardized assessment template by September 30, 2024, March 31, 2025, including the standardized training curriculum, methodology for training, the selection of a vendor to manage and conduct the training and determine the process for the statewide rollout, and coordination with tribal jurisdictions.



(3)        The phased‑in approach of the trauma‑informed, standardized assessment beginning on October 1, 2024, April 1, 2025, and operating statewide by September 30, 2025.March 31, 2026.



….



SECTION 9J.1.(b)  Section 9J.12(d) of S.L. 2023‑134 reads as rewritten:



SECTION 9J.12.(d)  Guidelines. – In developing the trauma‑informed, standardized assessment and the rollout plan, the Department of Health and Human Services shall ensure the trauma‑informed, standardized assessment does, at a minimum, all of the following:



(1)        That juveniles between the ages of 4 and 17 being placed into foster care receive a trauma‑informed, standardized assessment within 10 working days of their referral.



(2)        That each juvenile who is included in any Medicaid children and families specialty plan, regardless of their type of placement, receives a trauma‑informed, standardized assessment.assessment, provided that parent consent has been obtained when required.



(3)        That each trauma‑informed, standardized assessment may be administered in a face‑to‑face or telehealth encounter.



(4)        That the county department of social services makes the referral for a trauma‑informed, standardized assessment within five working days of a determination of abuse or neglect of the juvenile in accordance with G.S. 7B‑302.G.S. 7B‑302 for children in foster care or within five working days of obtaining parental consent for children who are at risk for entry into foster care.



(5)        After obtaining parental consent, that That a juvenile is able to receive a trauma‑informed, standardized assessment if the county department of social services (i) makes the determination that the juvenile is at imminent risk for entry into foster care.care and (ii) obtains parental consent.



(6)        Allows for individuals between the ages of 18 and 21 to receive an assessment, if necessary.



(7)        Provides an evidence‑informed and standardized template and content for the assessment.



(8)        In the event the juvenile has an assigned care manager under the Medicaid program, that the responsible care management entity is notified of the referral for the assessment and to whom.



SECTION 9J.1.(c)  This section is effective retroactively to July 1, 2023.



 



PART IX‑K. EMPLOYMENT AND INDEPENDENCE FOR PEOPLE WITH DISABILITIES [RESERVED]



 



PART IX‑L. HHS MISCELLANEOUS



 



Clinical Mental Health Counselor Accreditation Extension



SECTION 9L.1.(a)  G.S. 90‑336 reads as rewritten:



§ 90‑336.  Title and qualifications for licensure.



(a)        Each person desiring to be a licensed clinical mental health counselor associate, licensed clinical mental health counselor, or licensed clinical mental health counselor supervisor shall make application to the Board upon such forms and in such manner as the Board shall prescribe, together with the required application fee.



…



(b2)      The Board shall issue a license as a licensed clinical mental health counselor associate to an applicant who applies on or after July 1, 2022, and meets all of the following criteria:



(1)        Has earned a minimum of 60 semester hours or 90 quarter hours of graduate training as defined by the Board, including a master's degree in counseling or related field from either (i) an institution of higher education that is accredited by the Council for Accreditation of Counseling and Related Educational Programs.Programs or (ii) the University of Mount Olive.



(2)        Has passed an examination in accordance with rules adopted by the Board.



(c)        The Board shall issue a license as a licensed clinical mental health counselor to an applicant who meets all of the following criteria:



(1)        Has met all of the requirements under subsection (b), (b1), or (b2) of this section, as applicable.



(2)        Has completed a minimum of 3,000 hours of supervised clinical mental health practice as determined by the Board.



….



SECTION 9L.1.(b)  Subsection (a) of this section is retroactively effective on July 1, 2022, and applies to applications for licensure as a licensed clinical mental health counselor associate and a licensed clinical mental health counselor filed on or after that date. Subsection (a) of this section expires on July 2, 2025. The remainder of this section is effective when it becomes law.



 



PART IX‑M. DHHS BLOCK GRANTS



 



REVISE DHHS BLOCK GRANTS



SECTION 9M.1.  Section 9M.1 of S.L. 2023‑134, as amended by Section 3.8 of S.L. 2024‑1, reads as rewritten:



SECTION 9M.1.(a)  Except as otherwise provided, appropriations from federal Block Grant funds are made for each year of the fiscal biennium ending June 30, 2025, according to the following schedule:



 



TEMPORARY ASSISTANCE FOR NEEDY                     FY 2023‑2024         FY 2024‑2025



FAMILIES (TANF) FUNDS



 



Local Program Expenditures



 



Division of Social Services



 



      01. Work First Family Assistance                                        $31,328,255             $31,259,794



                                                                                                                                                        



 



      02. Work First County Block Grants                                      80,093,566               80,093,566



 



      03. Work First Electing Counties                                             2,378,213                 2,378,213



 



      04. Adoption Services – Special Children



            Adoption Fund                                                                    4,001,676                 4,001,676



 



      05. Child Protective Services – Child Welfare



            Workers for Local DSS                                                    11,387,190               11,387,190



 



      06. Child Welfare Program Improvement Plan                           775,176                    775,176



 



      07. Child Welfare Collaborative                                                 400,000                    400,000



 



      08. Child Welfare Initiatives                                                    1,400,000                 1,400,000



 



Division of Child Development and Early Education



 



      09. Subsidized Child Care Program                                       45,813,694               45,813,694



                                                                                                                                       52,316,626



 



      10. Swap‑Child Care Subsidy                                                 12,600,000               12,600,000



 



      11. NC Pre‑K Services                                                           68,300,000               68,300,000



 



Division of Public Health



 



      12. Teen Pregnancy Prevention Initiatives                               3,538,541                 3,538,541



 



DHHS Administration



 



      13. Division of Social Services                                                2,478,284                 2,478,284



 



      14. Division of Child and Family Well‑Being                                3,976                        3,976



 



      15. Office of the Secretary                                                             34,042                      34,042



 



      16. Eligibility Systems – Operations and



            Maintenance                                                                          431,733                    431,733



 



      17. NC FAST Implementation                                                    428,239                    428,239



 



      18. Division of Social Services – Workforce



            Innovation & Opportunity Act (WIOA)                                  93,216                      93,216



 



      19. Division of Social Services TANF Modernization            1,667,571                 1,667,571



 



Transfers to Other Block Grants



 



Division of Child Development and Early Education



 



      20. Transfer to the Child Care and



            Development Fund                                                           21,773,001               21,773,001



 



Division of Social Services



 



      21. Transfer to Social Services Block



            Grant for Child Protective Services –



            Training                                                                                 285,612                    285,612



 



      22. Transfer to Social Services Block



            Grant for Child Protective Services                                    5,040,000                 5,040,000



 



      23. Transfer to Social Services Block



            Grant for County Departments of



            Social Services for Children's Services                            13,097,783               13,166,244



 



      24. Transfer to Social Services Block



            Grant – Foster Care Services                                              3,422,219                 3,422,219



 



      25. Transfer to Social Services Block                                      1,582,000                 1,582,000



            Grant – Child Advocacy Centers



 



TOTAL TEMPORARY ASSISTANCE FOR



NEEDY FAMILIES (TANF) FUNDS                                  $312,353,987           $312,353,987



                                                                                                                                   $318,856,919



 



TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)



EMERGENCY CONTINGENCY FUNDS



 



Local Program Expenditures



 



Division of Child Development and Early Education



 



      01. Subsidized Child Care                                                    $34,440,000             $35,440,000



 



TOTAL TEMPORARY ASSISTANCE FOR



NEEDY FAMILIES (TANF) EMERGENCY



CONTINGENCY FUNDS                                                       $34,440,000             $35,440,000



 



SOCIAL SERVICES BLOCK GRANT



 



Local Program Expenditures



 



Divisions of Social Services and Aging and Adult Services



 



      01. County Departments of Social Services                         $19,905,849             $19,837,388



 



      02. County Departments of Social Services



            (Transfer From TANF)                                                     13,097,783               13,166,244



 



      03. EBCI Tribal Public Health and Human Services                  244,740                    244,740



 



      04. Child Protective Services



            (Transfer From TANF)                                                       5,040,000                 5,040,000



 



      05. State In‑Home Services Fund                                             1,943,950                 1,943,950



 



      06. Adult Protective Services                                                   2,138,404                 2,138,404



                                                                                                                                         4,936,015



 



      07. State Adult Day Care Fund                                                 1,994,084                 1,994,084



 



      08. Child Protective Services/CPS



            Investigative Services – Child Medical



            Evaluation Program                                                               901,868                    901,868



 



      09. Special Children Adoption Incentive Fund                           462,600                    462,600



 



      10. Child Protective Services – Child



            Welfare Training for Counties



            (Transfer From TANF)                                                          285,612                    285,612



 



      11. Home and Community Care Block



            Grant (HCCBG)                                                                  2,696,888                 2,696,888



 



      12. Child Advocacy Centers



            (Transfer From TANF)                                                       1,582,000                 1,582,000



 



      13. Guardianship – Division of Social Services                       1,802,671                 1,802,671



 



      14. Foster Care Services



            (Transfer From TANF)                                                       3,422,219                 3,422,219



      14A. Big Brothers Big Sisters of the Triangle, Inc.                    350,000                    350,000



 



Division of Mental Health, Developmental Disabilities, and Substance Use Services



 



      15. Mental Health Services – Adult and



            Child/Developmental Disabilities Program/



            Substance Use Services – Adult                                         4,149,595                 4,149,595



 



      15A. Autism Society of North Carolina, Inc.                           2,541,392                 2,541,392



 



      15B. The Arc of North Carolina, Inc.                                          271,074                    271,074



 



      15C. Easterseals UCP North Carolina & Virginia, Inc.           1,612,059                 1,612,059



 



DHHS Program Expenditures



 



Division of Services for the Blind



 



      16. Independent Living Program & Program



            Oversight                                                                            3,880,429                 3,880,429



                                                                                                                                         4,011,381



 



Division of Health Service Regulation



 



      17. Adult Care Licensure Program                                              557,598                    557,598



 



      18. Mental Health Licensure and



            Certification Program                                                            266,158                    266,158



 



Division of Aging and Adult Services



 



      19. Guardianship                                                                       3,825,443                 3,825,443



 



DHHS Administration



 



      20. Division of Aging and Adult Services                                   743,284                    743,284



                                                                                                                                            763,113



 



      21. Division of Social Services                                                1,042,894                 1,042,894



                                                                                                                                         1,060,787



 



      22. Office of the Secretary/Controller's Office                           639,167                    639,167



                                                                                                                                            649,695



 



      23. Legislative Increases/Fringe Benefits                                   293,655                    587,310



 



      24. Division of Child Development and



            Early Education                                                                       13,878                      13,878



 



      25. Division of Mental Health, Developmental



            Disabilities, and Substance Use Services                                28,325                      28,325



 



      26. Division of Health Service Regulation                                  258,960                    258,960



                                                                                                                                            347,721



 



TOTAL SOCIAL SERVICES BLOCK GRANT                  $75,992,579             $76,286,234



                                                                                                                                     $79,351,808



 



LOW‑INCOME ENERGY ASSISTANCE BLOCK GRANT



 



Local Program Expenditures



 



Division of Social Services



 



      01. Low‑Income Energy Assistance



            Program (LIEAP)                                                           $67,836,069             $67,836,069



                                                                                                                                     $50,316,347



 



      02. Crisis Intervention Program (CIP)                                    45,214,330               45,214,330



                                                                                                                                       38,699,719



 



Local Administration



 



Division of Social Services



 



      03. County DSS Administration                                               8,789,246                 8,789,246



                                                                                                                                         6,989,469



 



DHHS Administration



 



Division of Social Services



 



      04. Administration                                                                         10,000                      10,000



                                                                                                                                                6,500



 



      05. Energy Portal (FIS Transaction Fees)                                     25,000                      25,000



 



Division of Central Management and Support



 



      06. Office of the Secretary/Division of Information Resource



            Management (DIRM) (Accountable Results for



      Community Action (AR4CA) Replacement System)           166,750                    166,750



 



      07. Office of the Secretary/DIRM                                               278,954                    278,954



 



      08. Office of the Secretary/Controller's Office                             18,378                      18,378



 



      09. NC FAST Development                                                        627,869                    627,869



 



      10. NC FAST Operations and Maintenance                             1,330,323                 1,330,323



                                                                                                                                         1,830,000



 



Transfers to Other State Agencies



 



Department of Environmental Quality



 



      11. Weatherization Program                                                   13,220,309               13,220,309



                                                                                                                                         5,527,117



 



      12. Heating Air Repair and Replacement



            Program (HARRP)                                                             8,075,029                 8,075,029



                                                                                                                                         3,375,990



 



      13. Local Residential Energy Efficiency Service



            Providers – Weatherization                                                   787,097                    787,097



                                                                                                                                            329,068



 



      14. Local Residential Energy Efficiency Service



            Providers – HARRP                                                              437,276                    437,276



                                                                                                                                            182,815



 



      15. DEQ – Weatherization Administration                                 859,976                    859,976



                                                                                                                                            359,537



 



      16. DEQ – HARRP Administration                                            539,307                    539,307



                                                                                                                                            225,472



 



Department of Administration



 



      17. N.C. Commission on Indian Affairs                                        87,736                      87,736



 



TOTAL LOW‑INCOME ENERGY



      ASSISTANCE BLOCK GRANT                                    $148,303,649           $148,303,649



                                                                                                                                   $109,046,721



 



CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT



 



Local Program Expenditures



 



Division of Child Development and Early Education



 



      01. Child Care Services                                                      $289,070,072           $289,070,072



                                                                                                                                   $282,567,140



                                                                                                                                                        



 



      02. Smart Start Subsidy                                                            7,392,654                 7,392,654



 



      03. Transfer from TANF Block Grant



            for Child Care Subsidies                                                   21,773,001               21,773,001



 



      04. Quality and Availability Initiatives



            (TEACH Program $3,800,000)                                        61,980,526               61,980,526



                                                                                                                                       87,479,448



 



DHHS Administration



 



Division of Child Development and Early Education



 



      05. DCDEE Administrative Expenses                                      9,710,886                 9,710,886



 



      06. Indirect Cost                                                                              7,346                        7,346



 



Division of Social Services



 



      07. Direct Deposit for Child Care Payments                                   5,000                        5,000



 



      08. Local Subsidized Child Care



            Services Support                                                               18,780,355               18,780,355



 



Division of Central Management and Support



 



      09. NC FAST Operations and Maintenance                             1,450,316                 1,450,316



 



      10. DHHS Central Administration – DIRM



            Technical Services                                                                 979,762                    979,762



                                                                                                                                         1,006,100



 



      11. DHHS Central Administration                                                68,000                      68,000



 



Division of Child and Family Well‑Being



 



      12. Child Care Health Consultation Contracts                              62,205                      62,205



 



TOTAL CHILD CARE AND DEVELOPMENT



      FUND BLOCK GRANT                                                  $411,280,123           $411,280,123



                                                                                                                                   $430,302,451



 



COMMUNITY MENTAL HEALTH SERVICES BLOCK GRANT



 



Local Program Expenditures



 



      01. Mental Health Services – Child                                        $2,477,666               $2,477,666



 



      02. Mental Health Services – Adult/Child                             19,690,452               19,690,452



                                                                                                                                       21,545,678



 



      03. Mental Health Services – First



            Psychotic Symptom Treatment                                          5,416,756                 5,416,756



 



      04. Child Behavioral Health (Division of Child



            and Family Well‑Being)                                                     5,246,350                 5,246,350



 



DHHS Administration



 



Division of Child and Family Well‑Being



 



      05. Administration                                                                       140,000                    140,000



 



Division of Mental Health, Developmental Disabilities, and Substance Use Services



 



      06. Crisis Services                                                                    2,877,047                 2,877,047



 



      07. Administration                                                                       332,351                    332,351



 



      08. Adult/Child Mental Health Services                                     350,150                    350,150



 



Division of Public Health



 



      09. NC Detect – Behavioral Health ER                                         35,000                      35,000



 



TOTAL COMMUNITY MENTAL HEALTH SERVICES



      BLOCK GRANT                                                                $36,565,772             $36,565,772



                                                                                                                                     $38,420,998



 



SUBSTANCE USE PREVENTION, TREATMENT, AND RECOVERY SERVICES BLOCK GRANT



 



Local Program Expenditures



 



Division of Mental Health, Developmental Disabilities, and Substance Use Services



 



      01. Substance Abuse – IV Drug                                             $2,000,000               $2,000,000



                                                                                                                                         2,315,700



 



      02. Substance Abuse Prevention                                            20,245,927               20,245,927



                                                                                                                                       20,746,854



 



      03. Substance Use Services – Treatment for



            Children/Adults



            (Healing Transitions, Inc. $200,000;



            Triangle Residential Options for Substance



            Abusers, Inc., (TROSA) $3,225,000;



            First Step Farm of WNC, Inc. $100,000;



            Addiction Recovery Care Association, Inc.,



            (ARCA) $2,000,000)                                                        45,176,849               45,176,848



                                                                                                                                       46,738,974



 



DHHS Program Expenditures



 



Division of Mental Health, Developmental Disabilities, and Substance Use Services



 



      04. Crisis Solutions Initiatives – Collegiate



            Wellness/Addiction Recovery                                            1,545,205                 1,545,205



 



      05. Veterans Initiatives                                                                250,000                    250,000



     



DHHS Administration



 



Division of Mental Health, Developmental Disabilities, and Substance Use Services



 



      07. Administration                                                                    2,297,852                 2,297,852



                                                                                                                                         3,275,252



 



      08. Controlled Substance Reporting System                               675,000                    675,000



 



TOTAL SUBSTANCE USE PREVENTION, TREATMENT, AND RECOVERY



      SERVICES BLOCK GRANT                                           $72,190,833             $72,190,832



                                                                                                                                     $75,546,985



 



MATERNAL AND CHILD HEALTH BLOCK GRANT



 



Local Program Expenditures



 



Division of Child and Family Well‑Being



 



      01. Children's Health Services



            (Prevent Blindness $575,000;



            Nurse‑Family Partnership $1,102,308)                          $11,321,889             $11,321,889



                                                                                                                                     $11,438,221



 



Division of Public Health



 



      02. Women's and Children's Health Services



            (March of Dimes $350,000; Sickle Cell



            Centers $100,000; Teen Pregnancy Prevention



            Initiatives $650,000; Perinatal & Neonatal Outreach



            Coordinator Contracts $440,000; Mountain Area



            Pregnancy Services $50,000)                                             3,609,392                 3,609,392



                                                                                                                                         4,538,805



 



      03. Oral Health                                                                              51,119                      51,119



                                                                                                                                              53,009



 



      04. Evidence‑Based Programs in Counties



            With the Highest Infant Mortality Rates                            1,727,307                 1,727,307



 



DHHS Program Expenditures



 



      05. Children's Health Services                                                  1,344,492                 1,344,492



                                                                                                                                         1,304,025



 



      06. Women's Health – Maternal Health                                      252,695                    252,695



                                                                                                                                            383,162



 



      07. Women's and Children's Health – Perinatal



            Strategic Plan Support Position                                               80,669                      80,669



                                                                                                                                              83,413



 



      08. State Center for Health Statistics                                           158,583                    158,583



 



      09. Health Promotion – Injury and



            Violence Prevention                                                                87,271                      87,271



 



DHHS Administration



 



      10. Division of Public Health Administration                             340,646                    340,646



 



      11. Division of Child and Family Well‑Being



            Administration                                                                       211,925                    211,925



 



TOTAL MATERNAL AND CHILD



      HEALTH BLOCK GRANT                                              $19,185,988             $19,185,988



                                                                                                                                     $20,326,367



 



PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT



 



Local Program Expenditures



 



      01. Physical Activity and Prevention                                     $3,081,442               $3,081,442



                                                                                                                                       $3,398,934



 



DHHS Program Expenditures



 



Division of Public Health



 



      02. HIV/STD Prevention and



            Community Planning                                                             135,063                    135,063



 



      03. Oral Health Preventive Services                                            150,000                    150,000



 



      04. Injury and Violence Prevention



            (Services to Rape Victims – Set‑Aside)                                217,935                    217,935



 



      05. Performance Improvement and



            Accountability                                                                       560,182                    560,182



 



      06. State Center for Health Statistics                                             48,000                      48,000



 



DHHS Administration



 



Division of Public Health



 



      07. Division of Public Health                                                        65,000                      65,000



 



TOTAL PREVENTIVE HEALTH AND HEALTH



      SERVICES BLOCK GRANT                                             $4,257,622               $4,257,622



                                                                                                                                       $4,575,114



 



COMMUNITY SERVICES BLOCK GRANT



 



      01. Community Action Agencies                                         $22,862,029             $20,244,923



                                                                                                                                     $23,744,923



 



      02. Limited Purpose Agencies/Discretionary Funding               457,553                    504,718



 



      03. Office of Economic Opportunity                                        1,077,552                 1,124,718



 



      04. Office of the Secretary/DIRM (Accountable Results for



            Community Action (AR4CA) Replacement System)           560,000                    560,000



 



      05. Office of Economic Opportunity – Workforce



            Investment Opportunities Act (WIOA)                                   60,000                      60,000



 



TOTAL COMMUNITY SERVICES



      BLOCK GRANT                                                                $25,017,134             $22,494,359



                                                                                                                                     $25,994,359



…



SOCIAL SERVICES BLOCK GRANT



…



SECTION 9M.1.(s)  Of the two million one hundred thirty‑eight thousand four hundred four dollars ($2,138,404) appropriated in this act in the Social Services Block Grant to the Division of Aging and Adult Services (Division) for Adult Protective Services for each year of the 2023‑2025 fiscal biennium, the 2023‑2024 fiscal year and the four million nine hundred thirty‑six thousand fifteen dollars ($4,936,015) appropriated in this act in the Social Services Block Grant to the Division for Adult Protective Services for the 2024‑2025 fiscal year, the sum of eight hundred ninety‑three thousand forty‑one dollars ($893,041) for in each year of the 2023‑2025 fiscal biennium shall be used to increase the number of Adult Protective Services workers where these funds can be the most effective. These funds shall be used to pay for salaries and related expenses and shall not be used to supplant any other source of funding for staff. These funds are also exempt from 10A NCAC 71R .0201(3) requiring a local match of twenty‑five percent (25%).



…



LOW‑INCOME ENERGY ASSISTANCE BLOCK GRANT



…



SECTION 9M.1.(u)  The sum of sixty‑seven million eight hundred thirty‑six thousand sixty‑nine dollars ($67,836,069) for each year of the 2023‑2025 fiscal biennium the 2023‑2024 fiscal year and the sum of fifty million three hundred sixteen thousand three hundred forty‑seven dollars ($50,316,347) for the 2024‑2025 fiscal year appropriated in this act in the Low‑Income Energy Assistance Block Grant to the Department of Health and Human Services, Division of Social Services, shall be used for Energy Assistance Payments for the households of (i) elderly persons age 60 and above with income up to one hundred fifty percent (150%) of the federal poverty level and (ii) disabled persons eligible for services funded through the Division of Aging and Adult Services.



County departments of social services shall submit to the Division of Social Services an outreach plan for targeting households with 60‑year‑old household members no later than August 1 of each year. The outreach plan shall comply with the following:



(1)        Ensure that eligible households are made aware of the available assistance, with particular attention paid to the elderly population age 60 and above and disabled persons receiving services through the Division of Aging and Adult Services.



(2)        Include efforts by the county department of social services to contact other State and local governmental entities and community‑based organizations to (i) offer the opportunity to provide outreach and (ii) receive applications for energy assistance.



(3)        Be approved by the local board of social services or human services board prior to submission.



 



CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT



…



SECTION 9M.1.(x)  Of the sixty‑one million nine hundred eighty thousand five hundred twenty‑six dollars ($61,980,526) appropriated in this act in the Child Care and Development Block Grant for each year of the 2023‑2025 fiscal biennium the 2023‑2024 fiscal year and the eighty‑seven million four hundred seventy‑nine thousand four hundred forty‑eight dollars ($87,479,448) appropriated in this act for the 2024‑2025 fiscal year for quality and availability initiatives to the Department of Health and Human Services, Division of Child Development and Early Education, the sum of one million three hundred fifty thousand dollars ($1,350,000) for in each year of the 2023‑2025 fiscal biennium shall be used to establish 18 new positions. From the funds appropriated in this section for the 2024‑2025 fiscal year, the sum of twenty‑five million four hundred ninety‑eight thousand nine hundred twenty‑two dollars ($25,498,922) shall be used to extend the compensation grants portion of the child care stabilization grants, as authorized under Section 3.2(a) of S.L. 2021‑25.



…



SUBSTANCE USE PREVENTION, TREATMENT, AND RECOVERY SERVICES BLOCK GRANT



SECTION 9M.1.(aa)  Of the two million two hundred ninety‑seven thousand eight hundred fifty‑two dollars ($2,297,852) provided in this section in the Substance Use Prevention, Treatment, and Recovery Services Block Grant for each year of the 2023‑2025 fiscal biennium the 2023‑2024 fiscal year and the three million two hundred seventy‑five thousand two hundred fifty‑two dollars ($3,275,252) for the 2024‑2025 fiscal year to the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Use Services, for administration, the sum of nine hundred fifty‑nine thousand four hundred dollars ($959,400) in each fiscal year shall be used to support nine new positions.



SECTION 9M.1.(bb)  Notwithstanding any other provision of law or provision of the Committee Report described in Section 43.2 of S.L. 2022‑74 to the contrary, the sum of one million five hundred thousand dollars ($1,500,000) in nonrecurring funds provided to Haywood County and the sum of one million five hundred thousand dollars ($1,500,000) in nonrecurring funds provided to Madison County under the federal Substance Abuse Prevention and Treatment Block Grant in Item 3 of Section 9L.1(a) and Section 9L.1(z2)(1) of S.L. 2021‑180, as amended in Section 9L.1 of S.L. 2022‑74, for the 2022‑2023 fiscal year for substance use treatment shall remain available for expenditure in the 2023‑2024 2024‑2025 fiscal year.



 



MATERNAL AND CHILD HEALTH BLOCK GRANT



…



SECTION 9M.1.(ee)  The sum of eighty thousand six hundred sixty‑nine dollars ($80,669) for the 2023‑2024 fiscal year and the sum of eighty‑three thousand four hundred thirteen dollars ($83,413) for the 2024‑2025 fiscal year allocated in this section in the Maternal and Child Health Block Grant to the Department of Health and Human Services, Division of Public Health, Women and Children's Health Section, for each fiscal year of the 2023‑2025 fiscal biennium shall not be used to supplant existing State or federal funds. This allocation shall be used for a Public Health Program Consultant position assigned full‑time to manage the North Carolina Perinatal Health Strategic Plan and provide staff support for the stakeholder work group.



….



 



PART X. AGRICULTURE AND CONSUMER SERVICES



 



CUSTOM EXEMPT MEAT PROCESSING GRANT funding increase



SECTION 10.1.(a)  Section 10.6(d) of S.L. 2023‑134 reads as rewritten:



SECTION 10.6.(d)  Grant Criteria. – The Department shall develop policies and procedures for the disbursement of the grants authorized by this section that include, at a minimum, the following:



…



(2)        Limitation. – Grants under this section shall not exceed thirty forty thousand dollars ($30,000) ($40,000) per grantee.



….



SECTION 10.1.(b)  This section is effective when it becomes law and applies to grants awarded on or after that date.



 



Tobacco Trust Fund Administrative Cap Increase



SECTION 10.2.  G.S. 143‑717(i) reads as rewritten:



(i)       Limit on Operating and Administrative Expenses. – All administrative expenses of the Commission shall be paid from the Fund. No more than three hundred seventy‑five thousand dollars ($375,000) four hundred fifty thousand dollars ($450,000) may be used each fiscal year for administrative and operating expenses of the Commission and its staff, provided that the Commission may annually adjust the administrative expense cap imposed by this subsection, so long as that any cap increase does not exceed the amount necessary to provide for statewide salary and benefit adjustments enacted by the General Assembly.



 



PART XI. COMMERCE



 



CAREER DEVELOPMENT PLAN Contract implementation



SECTION 11.1.(a)  Of the funds appropriated to the Department of Commerce for the 2024‑2025 fiscal year, the Department shall use fifty thousand dollars ($50,000) in nonrecurring funds to contract with Year13, Inc., to integrate Year13, Inc.'s, student career planning tool with the Department's NCCareers.org website and program within 60 days from the date this section becomes law.



SECTION 11.1.(b)  This section is effective when it becomes law.



 



Increase Film Grant Cap



SECTION 11.2.(a)  G.S. 143B‑437.02A reads as rewritten:



§ 143B‑437.02A.  The Film and Entertainment Grant Fund.



(a)        Creation and Purpose of Fund. – There is created in the Department of Commerce a special, nonreverting account to be known as the Film and Entertainment Grant Fund to provide funds to encourage the production of motion pictures, television shows, movies for television, productions intended for on‑line distribution, and commercials and to develop the filmmaking industry within the State. The Department of Commerce shall adopt guidelines providing for the administration of the program. Those guidelines may provide for the Secretary to award the grant proceeds over a period of time, not to exceed three years. Those guidelines shall include the following provisions, which shall apply to each grant from the account:



…



(2)        The funds are not used to provide a grant in excess of any of the following:



a.         An amount more than twenty‑five percent (25%) of the qualifying expenses for the production.



b.         An amount more than seven (i) twenty million dollars ($7,000,000) ($20,000,000) for a feature‑length film, more than fifteen million dollars ($15,000,000) film or for a single season of a television series, or series or (ii) two hundred fifty thousand dollars ($250,000) for a commercial for theatrical or television viewing or on‑line distribution.



….



SECTION 11.2.(b)  This section becomes effective July 1, 2024, and applies to grants awarded on or after that date.



 



Megasite Technical Correction



SECTION 11.3.  Section 11.11(c) of S.L. 2022‑74, as amended by Section 11.11(b) of S.L. 2023‑134, reads as rewritten:



SECTION 11.11.(c)  Definitions. – The following definitions apply in this section:



…



(5)        Megasite. – A parcel of contiguous property consisting of more than 1,000 acres that is viable for industrial development and listed in the report produced pursuant to subsection (g) (d) of this section.



 



Natural Gas Local Distribution Companies Cost Recovery Modifications



SECTION 11.4.(a)  G.S. 62‑133.4 reads as rewritten:



§ 62‑133.4.  Gas cost adjustment for natural gas local distribution companies.



…



(c)        Each natural gas local distribution company shall submit to the Commission information and data for an historical 12‑month test period concerning the utility's actual cost of gas, volumes of purchased gas, sales volumes, negotiated sales volumes, and transportation volumes. This information and data shall be filed on an annual basis in the form and detail and at the time required by the Commission. The Commission, upon notice and hearing, shall compare the utility's prudently incurred costs with costs recovered from all the utility's customers that it served during the test period. If those prudently incurred costs are greater or less than the recovered costs, the Commission shall, subject to G.S. 62‑158, require the utility to refund any overrecovery by credit to bill or through a decrement in its rates and shall permit the utility to recover any deficiency through an increment in its rates. If the Commission finds the overrecovery or deficiency has been or is likely to be substantially reduced, negated, or reversed before or during the period in which it would be credited or recovered, the Commission, in its discretion, may order the utility to make an appropriate adjustment or no adjustment to its rates, consistent with the public interest.



…



(d1)     The utility shall not recover from ratepayers, in any rate recovery proceeding or rider, the incremental cost of natural gas attributable to renewable energy biomass resources that exceeds the average system cost of gas unattributable to renewable energy biomass resources calculated and filed with the Commission pursuant to subsection (c) of this section. Each natural gas local distribution company that incurs costs attributable to renewable energy biomass resources shall submit the utility's actual cost thereof to the Commission monthly for purposes of determining the total amount of natural gas costs recoverable under this section.



(e)        As used in this section, the word cost or costs shall be defined by Commission rule or order and may include all costs related to the purchase and transportation of natural gas to the natural gas local distribution company's system.The following definitions apply in this section:



(1)        Cost or costs shall be defined by Commission rule or order and may include all costs related to the production, purchase, and transportation of natural gas to the natural gas local distribution company's system.



(2)        Domestic wastewater means water‑carried human wastes together with all other water‑carried wastes normally present in wastewater from non‑industrial processes.



(3)        Natural gas or gas includes gas derived from renewable energy biomass resources.



(4)        Renewable energy biomass resources includes agricultural waste, animal waste, wood waste, spent pulping liquors, organic waste, combustible residues, combustible gases, energy crops, landfill methane, or domestic wastewater.



SECTION 11.4.(b)  G.S. 62‑133.7A reads as rewritten:



§ 62‑133.7A.  Rate adjustment mechanism mechanisms for natural gas local distribution company rates.



(a)        In setting rates for a natural gas local distribution company in a general rate case proceeding under G.S. 62‑133, the Commission may adopt, implement, modify, or eliminate a rate adjustment mechanism mechanisms to enable the company to recover the prudently incurred capital investment and associated costs of complying any of the following, including a return based on the company's then authorized return:



(1)        Complying with federal gas pipeline safety requirements, including a return based on the company's then authorized return.requirements.



(2)        Producing and transporting natural gas, as defined in G.S. 62‑133.4(e)(3), or consistent with the intent and purpose of G.S. 62‑133.4.



(b)        The Commission shall adopt, implement, modify, or eliminate a any of the rate adjustment mechanism mechanisms authorized under this section only upon a finding by the Commission that the mechanism is in the public interest.



 



RURAL ELECTRIFICATION AUTHORITY/FEE UPDATE



SECTION 11.5.(a)  G.S. 117‑3 reads as rewritten:



§ 117‑3.  Authority not granted power to fix rates or order line extensions; right of suggestion and petition.



The Except as provided in G.S. 117‑3.1(b), the Authority itself shall not be a rate‑making body, and shall have no power to fix the rates or service charges, or to order the extension of lines by the power companies. The Except as provided in G.S. 117‑3.1(b), the function of making rates and service charges and orders for the extension of lines shall remain in the Utilities Commission of North Carolina, and the Authority shall only have the right of suggestion and petition to the Utilities Commission of its opinion as to the proper rates and service charges and line extensions, and no rate recommended or suggested by the Authority shall be effective until approved by the Utilities Commission: Provided, that if the Utilities Commission of North Carolina does not have the right under the existing law to fix service charges in addition to the rates prescribed for electrical energy, and the power to order line extensions, such power and authority is hereby granted the Utilities Commission of North Carolina to fix and promulgate service charges in addition to rates in any community which avails itself of this Article, and form a corporation authorized hereunder to be known as electric membership corporation, and to order line extensions when it shall determine that the same is proper and feasible.



SECTION 11.5.(b)  G.S. 117‑3.1 reads as rewritten:



§ 117‑3.1.  Regulatory fee.



…



(b)        Rate. – For each fiscal year, year in which the General Assembly does not establish a rate, the regulatory fee shall be the greater of the following:



(1)        The rate established by the General Assembly for that year for each electric membership corporation's North Carolina meter connected for service and each telephone membership corporation's North Carolina access line connected for service for each quarter of the year.



(2)        Four cents (4¢) rate proposed by the Authority in accordance with this subsection, which shall not be more than six cents (6¢) for each electric membership corporation's North Carolina meter connected for service and for each telephone membership corporation's North Carolina access line connected for service for each quarter of the year.



When the Authority prepares its budget request for the upcoming fiscal year, the Authority shall propose a rate for the regulatory fee. For fiscal years beginning in an odd‑numbered year, that proposed rate shall be included in the budget message the Governor submits to the General Assembly pursuant to G.S. 143C‑3‑5. For fiscal years beginning in an even‑numbered year, that proposed rate shall be included in a special budget message the Governor shall submit to the General Assembly. If the General Assembly decides to set the regulatory fee at a rate higher than the rate in subdivision (2) of this subsection, it shall set the regulatory fee by law.



The regulatory fee may not exceed the amount necessary to generate funds sufficient to defray the estimated cost of the operations of the Authority for the upcoming fiscal year, including a reasonable margin for a reserve fund. The amount of the reserve may not exceed the estimated cost of operating the Authority for the upcoming fiscal year. In calculating the amount of the reserve, the General Assembly shall consider all relevant factors that may affect the cost of operating the Authority or a possible unanticipated increase or decrease in North Carolina electric meters and North Carolina telephone access lines.



….



 



PART XII. ENVIRONMENTAL QUALITY



 



2021 WATER/SEWER PROJECTS FROM STATE FISCAL RECOVERY FUNDS EXPENDITURE



SECTION 12.1.(a)  Recipients of funding from the State Fiscal Recovery Fund for water, wastewater, and stormwater projects under Sections 12.13 and 12.14 of S.L. 2021‑180, as amended, shall prioritize spending those funds prior to spending funds from other State or federal sources for other water, wastewater, and stormwater projects. The Department of Environmental Quality and the Office of State Budget and Management shall not approve payments or transfer funds for new water, wastewater, and stormwater project funding through State or federal sources unless the recipient for funding is meeting all milestones necessary to spend their funding from the State Fiscal Recovery Fund prior to December 31, 2026.



SECTION 12.1.(b)  Notwithstanding Section 12.13(f)(6) of S.L. 2021‑180, the funds granted to the Town of Canton may be used for water and wastewater infrastructure projects.



SECTION 12.1.(c)  Subsection (a) of this section does not apply to any funds appropriated or allocated to the Town of Canton for water, wastewater, or stormwater projects.



 



UNION COUNTY WASTEWATER PROJECT CLArIFICATION



SECTION 12.2.  Funds allocated to Union County by Section 12.13(f)(63) of S.L. 2021‑180 may, notwithstanding that subdivision, be also used by the County for an expansion of the 12‑Mile Creek water reclamation facility.



 



NASH COUNTY WATER AND WASTEWATER REALLOCATIONS



SECTION 12.2A.  Fifteen million dollars ($15,000,000) of the funds allocated to Nash County by Section 12.2(e)(126) of S.L. 2023-134 shall instead be allocated to the following local governments in the indicated amounts for water and wastewater projects, subject to the applicable directives of Section 12.2 of S.L. 2023-134 not inconsistent with this section:



(1)        Five million dollars ($5,000,000) to the Town of Bailey.



(2)        One million dollars ($1,000,000) to the Town of Middlesex.



(3)        Three million dollars ($3,000,000) to the Town of Nashville.



(4)        Four million dollars ($4,000,000) to the City of Rocky Mount.



(5)        One million dollars ($1,000,000) to the Town of Spring Hope.



(6)        One million dollars ($1,000,000) to the Town of Whitakers.



 



CITY of sanford water/sewer project



SECTION 12.2B.  Notwithstanding the Committee Report described in Section 43.2 of this act or any other provision of this act to the contrary, funds appropriated in this act to the Department of Commerce for a grant to Golden L.E.A.F. shall instead be appropriated to the Department of Environmental Quality to be used to provide a grant to the City of Sanford for a water or wastewater infrastructure project or for repayment of a loan for a water or wastewater infrastructure project from Golden L.E.A.F. The directives and limitations of Section 12.2 of S.L. 2023‑134 not inconsistent with this section apply to these funds.



 



2023 WATER/SEWER GENERAL FUND DEADLINES



SECTION 12.3.(a)  Deadlines for Project Completions. – Recipients of funding for projects under Section 12.2(e) of S.L. 2023‑134 shall comply with the following schedule:



(1)        No later than December 31, 2026, provide to the Department of Environmental Quality (Department) a completed request for funding form with a project budget that describes a project that is eligible for funding under applicable State or federal law and consistent with the purposes for the funding as set forth in Section 12.2(e) of S.L. 2023‑134.



(2)        No later than December 31, 2028, enter into a construction contract for the project.



(3)        No later than June 30, 2031, expend all funding allocated under Section 12.2(e) of S.L. 2023‑134.



SECTION 12.3.(b)  Extension of Deadline. – The Department may extend the applicable deadline set forth in subsection (a) of this section and set a new deadline with a date certain, if the Department finds good cause for the recipient of funding failing to meet the applicable deadline.



SECTION 12.3.(c)  Reversion of Unspent Funds. – If a recipient for funding under Section 12.2(e) of S.L. 2023‑134 (i) fails to meet any of the deadlines set forth in subsection (a) or (b) of this section or (ii) complies with the applicable deadline but there remains unexpended or unbudgeted funds in excess of the needs of the eligible project, then unencumbered funds shall revert in accordance with Section 12.2(c) of S.L. 2023‑134 on the next business day after the applicable deadline has passed.



SECTION 12.3.(d)  Reporting Requirement. – Beginning October 30, 2024, and no later than 30 days after each subsequent quarter thereafter, the Department shall report to (i) the chairs of the House Appropriations, Agriculture and Natural and Economic Resources, (ii) the chairs of the Senate Appropriations on Agriculture, Natural, and Economic Resources, (iii) each member who represents a district with an active project under Section 12.2(e) of S.L. 2023‑134, and (iv) the Fiscal Research Division detailing, at a minimum, each project's progress and funding status. This reporting requirement expires when all funds are expended and those projects are completed.



SECTION 12.3.(e)  Applicability. – This section only applies to funds allocated under Section 12.2(e) of S.L. 2023‑134 from the General Fund.



 



Harvest Reporting System Revisions



SECTION 12.4.(a)  Section 6(f) of S.L. 2023‑137 reads as rewritten:



SECTION 6.(f)  Subsection (a) of this section becomes effective December 1, 2024, December 1, 2025, and applies to violations committed on or after that date. Subsection (b) of this section becomes effective December 1, 2025, December 1, 2026, and applies to violations committed on or after that date. Subsection (c) of this section becomes effective December 1, 2026, December 1, 2027, and applies to violations committed on or after that date. The remainder of this section is effective when it becomes law.



SECTION 12.4.(b)  Notwithstanding any other provision of S.L. 2023‑134 or of the Committee Report described in Section 43.2 of that act to the contrary, the sum of five million dollars ($5,000,000) in nonrecurring funds appropriated to the Department of Environmental Quality in S.L. 2023‑134 for the 2023‑2024 fiscal year for a harvest reporting system for persons engaged in recreational and commercial harvesting of fish may be used for implementation as well as development of that system.



 



NPDES STORMWATER GENERAL PERMIT FEE CORRECTION



SECTION 12.5.  G.S. 143‑215.3D(a)(10) reads as rewritten:



(10)    NPDES Stormwater Permits. – The permit fee and annual fee for NPDES stormwater permits is as follows:



…



b.         The fee for coverage under a construction or industrial NPDES general permit is one hundred twenty dollars ($120.00).one hundred dollars ($100.00).



b1.       The fee for coverage under an industrial NPDES general permit is one hundred twenty dollars ($120.00).



….



 



SMALL DAM emergency action plan modifications



SECTION 12.6.(a)  G.S. 143‑215.31 reads as rewritten:



§ 143‑215.31.  Supervision over maintenance and operation of dams.



(a)        The Commission shall have jurisdiction and supervision over the maintenance and operation of dams to safeguard life and property and to satisfy minimum streamflow requirements. The Commission may adopt standards for the maintenance and operation of dams as may be necessary for the purposes of this Part. The Commission may vary the standards applicable to various dams, giving due consideration to the minimum flow requirements of the stream, the type and location of the structure, the hazards to which it may be exposed, and the peril of life and property in the event of failure of a dam to perform its function.



(a1)      The owner of a dam classified by the Department as a high‑hazard dam or an intermediate‑hazard dam shall develop an Emergency Action Plan for the dam as provided in this subsection:



…



(2)        The Emergency Action Plan shall include, at a minimum, all of the following:



a.         A description of potential emergency conditions that could occur at the dam, including security risks.



b.         A description of actions to be taken in response to an emergency condition at the dam.



c.         Emergency notification procedures to aid in warning and evacuations during an emergency condition at the dam.



d.         A downstream inundation map depicting areas affected by a dam failure and sudden release of the impoundment. A downstream inundation map prepared pursuant to this section does not require preparation by a licensed professional engineer or a person under the responsible charge of a licensed professional engineer unless the dam is associated with a coal combustion residuals surface impoundment, as defined by G.S. 130A‑309.201.



(3)        The Except as otherwise provided, the owner of the dam shall update the Emergency Action Plan annually and shall submit it to the Department and the Department of Public Safety for their review and approval within one year of the prior approval.



(3a)      If the dam meets the criteria for exclusion under G.S. 143‑215.25A(a)(6) but requires an Emergency Action Plan, then the owner of the dam shall update the Emergency Action Plan every five years and shall submit it to the Department and the Department of Public Safety for their review and approval at least one year prior to the expiration of the previous Emergency Action Plan.



….



SECTION 12.6.(b)  If the Department of Environmental Quality has determined that a failure of a dam less than 25 feet in height or that has an impoundment capacity of less than 50 acre‑feet would result in loss of human life or significant damage to property below the dam prior to the effective date of this section, then their requirement to have an updated Emergency Action Plan every year shall be updated every five years under G.S. 143‑215.31(a1)(3a), as enacted by this section, beginning after the approval date of the next Emergency Action Plan.



SECTION 12.6.(c)  This section becomes effective October 1, 2024, and applies to inspections of dams that occur on or after that date.



 



DAM RESILIENCE AND INFRASTRUCTURE NEEDS FUND



SECTION 12.7.(a)  Part 3 of Article 21 of Chapter 143 of the General Statutes is amended by adding a new section to read:



§ 143‑215.32B.  Dam Resilience and Infrastructure Needs Fund.



(a)        Establishment; Purpose. – There is established within the Department a special, nonreverting account to be known as the Dam Resilience and Infrastructure Needs Fund to receive federal funds under the United States Army Corps of Engineers Water Infrastructure Financing Program (WIFP) and any other public funds appropriated for purposes consistent with this section. This section provides to the Division of Energy, Mineral, and Land Resources of the Department of Environmental Quality all necessary authority to serve as the State Administrative Agency for this Fund. The Fund shall consist of any funds received from federal or State sources that are appropriated for dam repair, modification, removal, and other remediation efforts related to dam structural integrity and safety.



(b)        Eligible Uses. – Funds received from the WIFP or other federal sources may be used to disburse loans to eligible subrecipients in this State, consistent with federal Program rules published in the Federal Register and State law and rule. Any funds received from other State or federal sources shall be used consistent with the purposes and restrictions from the funding source, including grants, if applicable.



(c)        Priority. – The Department, through the Division, shall assign priority for loans from the Fund to eligible subrecipients based on the Risk‑Based Prioritization Method established under the Federal Emergency Management Agency Rehabilitation of High Hazard Potential Dams Grant Program. The Department may develop priority criteria for grants from other federal or State sources, if applicable.



(d)       Rulemaking. – The Department may adopt rules necessary to implement the provisions of this section.



(e)        Reporting Requirement. – The Department shall submit an annual report no later than October 1 of each year to the Joint Legislative Committee on Agriculture and Natural and Economic Resources and the Fiscal Research Division on the previous State fiscal year's loans, grants, or other disbursements from the Fund. The report shall include, at a minimum, the types, amounts, and recipients of loans, grants, and disbursements. If loans are disbursed, the report shall include (i) any defaults, (ii) interest rates, and (iii) efforts to recapture funds loaned to those recipients in the event of delinquent payment.



SECTION 12.7.(b)  The Department of Environmental Quality may use existing funds to create up to two full‑time equivalent positions to operate the Dam Resilience and Infrastructure Needs Fund program as set forth in this section.



 



Shallow Draft Fund Amendments



SECTION 12.8.  G.S. 143‑215.73F, as amended by Section 4.12 of S.L. 2024‑1, reads as rewritten:



§ 143‑215.73F.  Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund.



…



(b)        Uses of Fund. – Revenue in the Fund may only be used for the following purposes:



(1)        To provide the State's share of the costs associated with any dredging project designed to keep shallow draft navigation channels located in State waters or waters of the State located within lakes navigable and safe.



(2)        For aquatic weed control projects in waters of the State that either address (i) a noxious aquatic weed designated under Article 15 of Chapter 113A of the General Statutes, (ii) cyanobacteria causing harmful algal blooms or producing cyanotoxins such as cylindrospermopsin and saxitoxins, or (iii) other aquatic vegetation not so designated, if the vegetation obstructs public water access or access by watercraft to public watercraft launching or docking areas. Funding for aquatic weed control projects is limited to one million dollars ($1,000,000) two million dollars ($2,000,000) in each fiscal year.



(3)        For administrative support of activities related to beach and inlet management in the State, limited to one hundred thousand dollars ($100,000) one hundred twenty thousand dollars ($120,000) in each fiscal year.



(3a)      For administrative support of Fund operations, limited to one hundred thousand dollars ($100,000) in each fiscal year.



…



(b2)      Invoice Approval Required. – Any invoices submitted to the Secretary for reimbursement or payment from the Fund for projects undertaken for the purpose set forth in subdivision (1) of subsection (b) of this section shall be signed by the representative of the unit of local government sponsoring the project.



…



(f1)      Administrative Expense Adjustment. – The Secretary may annually adjust the administrative expense caps imposed by subdivisions (b)(3) and (b)(3a) of this section, so long as any cap increase does not exceed the amount necessary to provide for statewide salary and benefit adjustments enacted by the General Assembly.



….



 



ModernizE Wastewater Permitting to Support Environmentally Sound Economic Development



SECTION 12.9.(a)  The General Assembly finds all of the following:



(1)        Residents of the State should be assured enjoyment of, and access to, proven and reasonable methods of treating and disposing of wastewater that embrace new technologies.



(2)        As the State continues to grow and attract businesses, it is critical that wastewater treatment and disposal facilities are provided for those businesses; and adequate and affordable housing that is proximate to those businesses must be available to assure the success of those businesses.



(3)        Residents of the State should be assured treatment in an equitable manner to their counterparts within other states comprising the United States Environmental Protection Agency's (USEPA) Region 4 where permits are authorized and issued for the discharge of treated wastewater from municipalities, businesses, and developments to, for example, receiving waters in which natural flow is intermittent, or under certain circumstances non‑existent (Alabama Admin. Code r. 335‑6‑10‑.09).



(4)        The discharge of treated wastewater to low flow or zero flow receiving waters is of low risk to the environment, protects and improves water quality, and provides the most prudent use of ratepayer funds.



(5)        For all these reasons, it is necessary to establish methodologies and rules for the discharge of treated domestic wastewaters with low risk following site specific criteria to surface waters of the State, including wetlands, perennial streams, and unnamed tributaries of named and classified streams and intermittent streams or drainage courses where the 7Q10 flow or 30Q2 flow of the receiving waters is estimated to be low flow or zero flow, as determined by the United States Geological Survey (USGS).



(6)        This act preserves and maintains the authority of the Department of Environmental Quality (Department) for appropriate review, including opportunities for public comment, and requires the Department and the Environmental Management Commission (Commission) to seek necessary approvals from USEPA to adopt temporary and permanent rules to authorize discharges of wastewater to such receiving waters.



SECTION 12.9.(b)  G.S. 143‑215.1(c8) is repealed.



SECTION 12.9.(c)  Section 12.9 of S.L. 2023‑134 is repealed.



SECTION 12.9.(d)  No later than August 1, 2024, the Department of Environmental Quality (Department) and the Environmental Management Commission (Commission) shall develop and submit to the United States Environmental Protection Agency for USEPA's approval draft rules that establish methodologies and permitting requirements for the discharge of treated domestic wastewaters with low risk following site‑specific criteria to surface waters of the State, including wetlands, perennial streams, and unnamed tributaries of named and classified streams and intermittent streams or drainage courses where the 7Q10 flow or 30Q2 flow of the receiving water is estimated to be low flow or zero flow, or under certain conditions non‑existent, as determined by the United States Geological Survey (USGS). Within 20 days of the date USEPA approves the draft rules submitted pursuant to this subsection, the Commission shall initiate the process for temporary and permanent rules pursuant to Chapter 150B of the General Statutes. The draft rules submitted to USEPA for approval shall include all of the following:



(1)        Defined terms. –



a.         Treated domestic wastewater shall mean sewage and wastewater comprised of waste and wastewater from household, commercial or light industrial operations (e.g., homes, restaurants, car washes, laundromats servicing only domestic laundry) excluding any industrial process wastewater regulated by USEPA under the Categorical Pretreatment Standards.



b.         Low‑risk discharges means discharges of 2 million gallons per day or less of treated domestic wastewater when the dissolved oxygen content (DO) of the effluent is significantly higher (1.5 mg/l or greater) than the DO of the receiving water during low flow periods and the biological oxygen demand content (BOD) of the effluent is significantly lower (1.5 mg/l or more) than the DO of the effluent.



c.         Sag means a reduction in the existing DO in the background surface receiving water to which treated wastewater will be discharged. Sag is typically related to nutrient elements within treated wastewater, which may promote the growth of oxygen‑consuming micro‑organisms, increasing the BOD, which at elevated levels may reduce DO in the background surface water body.



(2)        Criteria for permitting. –



a.         Applicants shall be required to demonstrate, through an analysis comparing the limits of the NPDES permit to the characteristics of the receiving water, that a proposed discharge meets criteria for a low‑risk discharge as defined in this subsection. When a discharge is determined to be low‑risk, the applicant shall demonstrate using simple modeling of the applicant's choosing, provided that the model chosen is utilized elsewhere in USEPA Region 4, such as the Streeter‑Phelps model used in the State of Alabama, to show that the Sag, if any, in the DO of the receiving water will not exceed 0.1mg/l.



b.         Discharges to low flow or zero flow receiving waters shall be subject to the following conditions:



1.         The receiving waters fall within any of the following categories:



I.          The 7Q10 or 32Q2 flow statistics are estimated to be zero by the USGS.



II.        The drainage area of the discharge point is less than 5 square miles as specified by the USGS on‑line tools or other methodology that meets the standard of care for such work.



III.       The 7Q10 flow is estimated to be less than 1 cubic foot per second by the USGS.



2.         The proposed flow for any wastewater discharge shall be the lesser of the following:



I.          No more than one‑tenth of the flow generated by the one‑year, 24‑hour storm event given the drainage area and calculated using the rational method. The rational method shall be used to calculate the peak runoff for the one‑year, 24‑hour precipitation event in cubic feet per second. The peak runoff shall then be divided by 10 and multiplied by 646,272 to convert the result to gallons per day of allowable discharge at the point studied.



II.        Two million gallons per day.



3.         All discharges shall be directed to buffer systems that utilize low‑energy methodologies to function as a buffer between the discharge and the receiving waters. Buffer systems shall consist of one of the following:



I.          High‑rate infiltration basins that may include engineered materials to achieve high rates of infiltration, which engineered materials shall have an ASTM gradation of a fine to coarse grain sand, and angular to maintain structural integrity of the slope.



II.        Constructed free‑surface wetlands having a hydraulic residence time of 14 days.



III.       Other suitable technologies that provide a physical or hydraulic residence time buffer, or both, between the discharge and the receiving waters.



4.         Discharge to areas that are 50 feet upland of the receiving waters or wetlands at a non‑erosive velocity equal to or less than 2 feet per second through an appropriately designed energy dissipater, or other applicable designs, that meet the standard of practice for professional engineers for such devices.



5.         Utilize more than one outfall to the receiving stream so that no one outfall exceeds 1 cubic foot per second based on the average daily flow of the discharge. Discharges from buffer systems shall be allowed to be placed at increments along a stream or receiving waters at no less than 50 linear feet.



6.         No discharge shall be permitted to classified shellfish waters (SA), tidal waters (SC), water supply waters (WS), or outstanding resource waters (ORW). Discharges to unnamed tributaries of classified shellfish waters, however, shall be authorized in compliance with requirements of this section and only when a low‑risk situation is present. Discharges to nutrient sensitive waters (NSW) may require additional modeling and allocation of flow and will be at the discretion of the Department.



7.         The following effluent limits shall generally apply except where (i) the applicant and Department agree to more stringent limits or (ii) complex modeling conducted pursuant to sub‑sub‑subdivision 8. of this sub‑subdivision demonstrates that Sag in the DO content of the receiving water of 0.1 mg/l or less will occur and water quality standards are protected:



I.          Biological oxygen demand (BOD5) shall not exceed 5.0 mg/l monthly average.



II.        NH3, 0.5 mg/l monthly average, 1.0 mg/l daily maximum.



III.       Total nitrogen shall not exceed 4.0 mg/l monthly average.



IV.       Total phosphorus, 1.0 mg/l monthly average, 2.0 mg/l daily maximum.



V.        Fecal coliforms, 14 colonies/100ml or less.



VI        Dissolved oxygen, 7.0 mg/l or greater.



VII.     Total suspended solids, 5.0 mg/l monthly average, 8mg/l daily maximum.



VIII.    Nitrate, 1.0 mg/l monthly average, 2.0 mg/l daily maximum.



8.         If an applicant proposes less stringent effluent limits than those set forth in sub‑sub‑subdivision 7. of this sub‑subdivision, the applicant shall conduct more complex modeling using any model accepted elsewhere in USEPA Region 4 that the applicant elects to use to confirm that a Sag in the DO content of the receiving water of 0.1 mg/l or less will occur and water quality standards are protected.



9.         The Department shall not require an applicant to obtain mapping data from the USGS as part of an application. In lieu, an engineer of record licensed in the State of North Carolina may prepare required mapping utilizing either USGS maps or other maps approved by the Department.



10.       Within 30 days of the filing of an application for a wastewater discharge subject to this section, the Department shall (i) determine whether or not the application is complete and notify the applicant accordingly and (ii) if the Department determines an application is incomplete, specify all such deficiencies in the notice to the applicant. The applicant may file an amended application or supplemental information to cure the deficiencies identified by the Department for the Department's review. If the Department fails to issue a notice as to whether or not the application is complete within the requisite 30‑day period, the application shall be deemed complete. Within 180 days of the filing of a completed application, the Commission shall either grant or deny the permit. If the Commission fails to act in the requisite time frame, ten percent (10%) of the application fee shall be returned to the applicant for each working day beyond the 180‑day period.



SECTION 12.9.(e)  No later than September 1, 2024, the Department in conjunction with the North Carolina Collaboratory at the University of North Carolina at Chapel Hill (Collaboratory) shall convene a Wastewater General Permit Working Group (Working Group) consisting of Department and Collaboratory staff and a maximum of five consulting experts appointed by the Director of the Collaboratory in the fields of environmental regulation, wastewater regulation, water quality regulation, and wastewater treatment regulation, to develop the draft rules for the implementation of a Wastewater Treatment and Discharge General Permit process for the State. The Working Group shall report its findings to the Environmental Review Commission no later than March 15, 2025. Following consideration by the Environmental Review Commission, and after making any changes required by the Environmental Review Commission, the Department shall develop and submit proposed rules to USEPA for its approval. Within 20 days of the date USEPA approves the draft rules submitted pursuant to this subsection, the Commission shall initiate the process for temporary and permanent rules pursuant to Chapter 150B of the General Statutes.



SECTION 12.9.(f)  Beginning September 1, 2024, and quarterly thereafter until such times as permanent rules as required by subsections (d) and (e) of this section have become effective, the Department and the Environmental Management Commission shall report on their activities to implement subsections (d) and (e) of this section to the Environmental Review Commission, the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, the Senate Appropriations Committee on Agriculture, Natural and Economic Resources, and the House of Representatives Appropriations Committee on Agriculture and Natural and Economic Resources of the General Assembly.



SECTION 12.9.(g)  This section is effective when it becomes law.



 



PFAS REMEDIATION AND PREVENTION FUNDING



SECTION 12.10.(a)  Notwithstanding any other provision of law or of the Committee Report referenced in Section 43.2 of this act to the contrary, of the funds appropriated in this act to the Department of Environmental Quality (DEQ) from the General Fund for the Shallow Draft Navigation Channel and Aquatic Weed Fund, the sum of two million one hundred thirty thousand three hundred fifty‑seven dollars ($2,130,357) in recurring funds shall not be used for those purposes but shall instead be used by DEQ to establish a technical assistance program to support industry and municipalities as they implement treatment and management programs to prevent the release of per‑ and polyfluoroalkyl Substances (PFAS) into the environment and to remove PFAS from drinking water supplies.



SECTION 12.10.(b)  Notwithstanding any other provision of law or of the Committee Report referenced in Section 43.2 of this act to the contrary, of the funds appropriated in this act to the Department of Commerce (Commerce) for the One NC program, the sum of seven hundred fifty thousand dollars ($750,000) in nonrecurring funds for the 2024‑2025 fiscal year shall not be used for those purposes but shall instead be transferred to the Department of Environmental Quality to be used for equipment and lab supplies to increase its capacity to analyze PFAS (and other emerging compounds) samples in‑house and thereby improve turnaround time and customer service.



 



PART XIII. LABOR [RESERVED]



 



PART XIV. NATURAL AND CULTURAL RESOURCES



 



AUTHORIZE NEW TRAILS



SECTION 14.1.(a)  The General Assembly authorizes the Department of Natural and Cultural Resources to add the (i) First Broad River Paddle Trail in Cleveland and Rutherford Counties, (ii) Carolina Thread Trail encompassing 15 counties in the southwestern part of the State, and (iii) Watauga River Paddle Trail in Watauga County to the State Parks System as State Trails, as provided in G.S. 143B‑135.54(b). The Department shall support, promote, encourage, and facilitate the establishment of trail segments on State park lands and on lands of other federal, State, local, and private landowners. On segments of those State Trails that cross property controlled by agencies or owners other than the Department's Division of Parks and Recreation, the laws, rules, and policies of those agencies or owners shall govern the use of the property. The requirement of G.S. 143B‑135.54(b) that additions be accompanied by adequate appropriations for land acquisition, development, and operations shall not apply to the authorization set forth in this section; provided, however, that the State may receive donations of appropriate land and may purchase other needed lands for those State Trails with existing funds in the North Carolina Land and Water Fund, the Parks and Recreation Trust Fund, the federal Land and Water Conservation Fund, and other available sources of funding.



SECTION 14.1.(b)  This section is effective when it becomes law.



 



Capacity‑Building Grants for Great Trails



SECTION 14.2.  Of the funds appropriated in this act to the Department of Natural and Cultural Resources for the Great Trails State Program for the 2024‑2025 fiscal year, the sum of one million dollars ($1,000,000) shall be allocated as follows:



(1)        Seven hundred fifty thousand dollars ($750,000) to be divided equally between the 15 eligible entities, as defined in Section 14.6 of S.L. 2023‑134, for capacity‑building grants.



(2)        Fifty thousand dollars ($50,000) for the Saluda Grade Trails Conservancy, a nonprofit corporation, for a capacity‑building grant for the Saluda Grade rail corridor. These funds shall not be disbursed to the Conservancy until the Saluda Grade rail corridor has been designated as a State Trail and conveyed to the State in accordance with the memorandum of understanding entered into under Section 14.5(d) of S.L. 2023‑134.



(3)        Two hundred thousand dollars ($200,000) to the Great Trails State Coalition, a nonprofit corporation, for (i) a time‑limited position to assist and coordinate trail planning and implementation for the nonprofit organizations in the State, (ii) marketing for trail events, and (iii) promoting outdoor trail recreation.



 



N.C. ZOO MODIFICATIONS



SECTION 14.3.(a)  G.S. 150B‑1(d) reads as rewritten:



(d)      Exemptions from Rule Making. – Article 2A of this Chapter does not apply to the following:



…



(27a)    The Department of Natural and Cultural Resources with respect to developing park rules and standards of etiquette governing visitors at the North Carolina Zoological Park.



….



SECTION 14.3.(b)  G.S. 143‑341 reads as rewritten:



§ 143‑341.  Powers and duties of Department.



The Department of Administration has the following powers and duties:



…



(8)        General Services:



…



i.          To establish and operate a central motor fleet and such subsidiary related facilities as the Secretary may deem necessary, and to that end:



…



3.         To require on a schedule determined by the Department all State agencies to transfer ownership, custody or control of any or all passenger motor vehicles within the ownership, custody or control of that agency to the Department, except those motor vehicles under the ownership, custody or control of the the following:



I.          The North Carolina Zoological Park.



II.        The North Carolina Division of Parks and Recreation of the Department of Natural and Cultural Resources.



III.       The Highway Patrol, the State Bureau of Investigation, the State Capitol Police, or the Alcohol Law Enforcement Division of the Department of Public Safety, the Safety.



IV.       The Samarcand Training Academy, or the Academy.



V.        The constituent institutions of The University of North Carolina which are used primarily for law‑enforcement purposes.



….



SECTION 14.3.(c)  G.S. 121‑4 reads as rewritten:



§ 121‑4.  Powers and duties of the Department of Natural and Cultural Resources.



The Department of Natural and Cultural Resources shall have the following powers and duties:



(1)        To accept gifts, devises, and endowments for purposes which fall within the general legal powers and duties of the Department. Unless otherwise specified by the donor or testator, the Department may either expend both the principal and interest of any gift or devises or may invest such funds in whole or in part, by and with the consent of the State Treasurer. The Department may recognize gifts by naming naming, allowing the sponsorship of, or allowing logo or advertisement placement on, exhibits, equipment, buildings, features, or other property belonging to, or programs administered by by, the Department.



….



SECTION 14.3.(d)  G.S. 143B‑135.209 reads as rewritten:



§ 143B‑135.209.  North Carolina Zoo Fund.



…



(c)        Approval. – The Secretary may approve the use of the North Carolina Zoo Fund for repair and renovation projects at the North Carolina Zoological Park that comply with the following:



(1)        The total project cost is less than five hundred thousand dollars ($500,000).one million dollars ($1,000,000).



(2)        The project meets the criteria to be classified as a repair or renovation under G.S. 143C‑8‑13(a).



(3)        The project is paid for from funds appropriated to the Fund.



(4)        The project does not obligate the State to provide increased recurring funding for operations.



….



SECTION 14.3.(e)  G.S. 143C‑8‑7 reads as rewritten:



§ 143C‑8‑7.  When a State agency may begin a capital improvement project.



(a)        No State agency may expend funds for the construction or renovation of any capital improvement project except as needed to comply with this Article or as otherwise authorized by (i) an act of the General Assembly or (ii) subsection (b) of this section. Funds that become available by gifts, federal or private grants, receipts becoming a part of special funds by act of the General Assembly, or any other funds available to a State agency or institution may be utilized for advanced planning through the working drawing phase of capital improvement projects, upon approval of the Director of the Budget.



(b)        Notwithstanding any other provision of law to the contrary, the following agencies are authorized to utilize the types of funds described in subsection (a) of this section for capital improvement projects with a total project cost less than one hundred fifty thousand dollars ($150,000) as follows:



(1)        The Department of Agriculture and Consumer Services, for equipment structures that meet the description contained in G.S. 143‑138(b4)(1)c. on an as‑needed basis.



(2)        The Wildlife Resources Commission, for equipment storage or maintenance buildings.



(3)        The Department of Natural and Cultural Resources for projects at the North Carolina Zoological Park.



 



STATE CHILDREN'S MUSEUM



SECTION 14.4.(a)  Chapter 145 of the General Statutes is amended by adding a new section to read:



§ 145‑52.  State children's museum.



The Kidzu Children's Museum is adopted as the official children's museum of North Carolina.



SECTION 14.4.(b)  This section is effective when it becomes law.



 



PART XV. WILDLIFE RESOURCES COMMISSION [RESERVED]



 



PART XVI. ADMINISTRATIVE OFFICE OF THE COURTS



 



REQUIRE PROSECUTOR TO EXPLAIN REDUCTION OR DISMISSAL OF CHARGE IN CIVIL DISORDER CASES



SECTION 16.1.(a)  Article 9 of Chapter 7A of the General Statutes is amended by adding a new section to read:



§ 7A‑69.2.  Requirement that prosecutor explain reduction or dismissal of charge in civil disorder case.



(a)        Definition. – For purposes of this section, the term civil disorder case means a case involving an offense under any of the following:



(1)        G.S. 14‑12.7 through G.S. 14‑12.10.



(2)        G.S. 14‑132.



(3)        G.S. 14‑288.2.



(4)        Subdivisions (3) through (6) of subsection (a) of G.S. 14‑288.4.



(5)        G.S. 14‑288.5.



(6)        G.S. 14‑288.6.



(7)        G.S. 20‑174.1.



(b)        Requirement. – Any prosecutor shall enter detailed facts in the record of any civil disorder case explaining orally in open court and in writing the reasons for the prosecutor's action if the prosecutor does any of the following:



(1)        Enters a voluntary dismissal.



(2)        Accepts a plea of guilty or no contest to a lesser included offense.



(3)        Substitutes another charge, by statement of charges or otherwise, if the substitute charge carries a lesser mandatory minimum punishment.



(4)        Otherwise takes a discretionary action that effectively dismisses or reduces the original charge.



General explanations such as interests of justice or insufficient evidence are not sufficiently detailed to meet the requirements of this section.



(c)        Content of Explanation. – The written explanation shall be signed by the prosecutor taking the action on a form approved by the Administrative Office of the Courts and shall contain, at a minimum, all of the following:



(1)        A list of all prior convictions of offenses set forth in subdivision (1) of subsection (a) of this section.



(2)        A statement that a check of the database of the Administrative Office of the Courts revealed whether any other charges against the defendant were pending.



(3)        The elements that the district attorney believes in good faith can be proved, and a list of those elements that the district attorney cannot prove and why.



(4)        The name and agency of the charging officer and whether the officer is available.



(5)        Any reason why the charges are dismissed.



(d)       Copy of Explanation. – A copy of the form required in subsection (c) of this section shall be sent to the head of the law enforcement agency that employed the charging officer, to the district attorney who employs the prosecutor, and filed in the court file. The Administrative Office of the Courts shall electronically record this data in its database and make it available upon request.



SECTION 16.1.(b)  This section becomes effective October 1, 2024, and applies to offenses committed on or after that date.



 



ALLOW MAGISTRATES with certain prior experience TO START IN HIGHER SALARY STEP



SECTION 16.2.(a)  G.S. 7A‑171.1(a) reads as rewritten:



(a)      The Administrative Officer of the Courts, after consultation with the chief district judge and pursuant to the following provisions, shall set an annual salary for each magistrate:



…



(3)        Notwithstanding any other provision of this subsection, a subsection:



a.         A magistrate who is licensed to practice law in North Carolina or any other state shall receive the annual salary provided in the Table in subdivision (1) of this subsection for Step 4.



b.         A magistrate with a total of 10 or more years of experience in any combination of the following positions shall receive the annual salary provided in the Table in subdivision (1) of this subsection for Step 2:



1.         Law enforcement officer in North Carolina.



2.         Assistant clerk of superior court in North Carolina.



3.         Deputy clerk of superior court in North Carolina.



SECTION 16.2.(b)  This section becomes effective July 1, 2024.



 



Add Magistrate to Avery County



SECTION 16.4.  G.S. 7A‑133(c) reads as rewritten:



(c)      Each county shall have the numbers of magistrates and additional seats of district court, as set forth in the following table:



 



                                  Magistrates                        Additional



County                      Min.                                    Seats of Court



…



Avery                        34                                       



….



 



Amend Recipients of Annual Report on Business Courts



SECTION 16.5.(a)  G.S. 7A‑343(8a) reads as rewritten:



(8a)    Prepare and submit an annual report on the activities of each North Carolina business court site to the Chief Justice, the chairs of the House of Representatives Appropriations Committee on Justice and Public Safety and the Senate Appropriations Committee on Justice and Public Safety, and the chairs of the of the Joint Legislative Oversight Committee on Justice and Public Safety, and all other members of the General Assembly Safety on February 1. The report shall include the following information for each business court site:



a.         The number of new, closed, and pending cases for the previous three years.



b.         The average age of pending cases.



c.         The number of motions pending over six months after being filed.



d.         The number of cases in which bench trials have been concluded for over six months without entry of judgment, including any accompanying explanation provided by the Business Court.



The report shall include an accounting of all business court activities for the previous fiscal year, including the itemized annual expenditures.



SECTION 16.5.(b)  This section is effective when it becomes law and applies to reports prepared on or after that date.



 



Statewide Misdemeanant Confinement Program/Revise Reporting Date on Five‑Year Projection



SECTION 16.6.  G.S. 164‑51 reads as rewritten:



§ 164‑51.  Five‑year projection; Statewide Misdemeanant Confinement Program.



The Judicial Department, through the North Carolina Sentencing and Policy Advisory Commission (Commission) and with the assistance of the North Carolina Sheriffs' Association (Sheriffs' Association), shall develop projections of available bed space in the Statewide Misdemeanant Confinement Program (Program). The projections shall cover the next five fiscal years beginning with the 2018‑2019 fiscal year. All State agencies, the Sheriffs' Association, and the person having administrative control of a local confinement facility as defined in G.S. 153A‑217(5) shall furnish to the Commission data related to available bed space as requested to implement this section.



The Commission shall report its projections to the chairs of the Senate Appropriations Committee on Justice and Public Safety and the chairs of the House Appropriations Committee on Justice and Public Safety no later than February 15, 2019, and annually thereafter.thereafter by March 15 of each year.



 



ADMINISTRATIVE OFFICE OF THE COURTS TO PAY THE CONTINUING LEGAL EDUCATION FEES OF EMERGENCY JUSTICES, EMERGENCY APPELLATE AND TRIAL COURT JUDGES, AND EMERGENCY RECALL JUDGES



SECTION 16.7.(a)  G.S. 7A‑52 is amended by adding a new subsection to read:



(c)      The Administrative Office of the Courts shall pay all continuing legal education fees required by the North Carolina State Bar for individuals actively serving as an emergency district, superior, or special superior court judge under this Article. These fees shall be those associated with continuing legal education courses taken to fulfill the educational requirements of the calendar year in which an emergency district, superior, or special superior court judge actively serves.



Pursuant to policies and procedures created by the Administrative Office of the Courts for the purposes of this subsection, emergency district, superior, and special superior court judges shall submit to the Administrative Office the Courts at least one of the following:



(1)        For payment of continuing legal education fees, an invoice from the State Bar delineating the fees owed.



(2)        For reimbursement of continuing legal education fees previously paid for by the emergency district, superior, or special superior court judge, a receipt delineating the fees paid.



The fees paid pursuant to this subsection shall only be those required by the North Carolina State Bar, not to include other costs associated with continuing legal education courses such as travel, lodging, or meals.



SECTION 16.7.(b)  Article 6 of Chapter 7A of the General Statutes is amended by adding a new section to read:



§ 7A‑39.16.  Continuing legal education fees of emergency justices, judges, and recall judges.



The Administrative Office of the Courts shall pay all continuing legal education fees required by the North Carolina State Bar for individuals actively serving as emergency justices, judges, or recall judges under this Article. These fees shall be those associated with continuing legal education courses taken to fulfill the educational requirements of the calendar year in which an emergency justice, judge, or recall judge actively serves.



Pursuant to policies and procedures created by the Administrative Office of the Courts for the purposes of this section, emergency justices, judges, and recall judges shall submit to the Administrative Office the Courts at least one of the following:



(1)        For payment of continuing legal education fees, an invoice from the State Bar delineating the fees owed.



(2)        For reimbursement of continuing legal education fees previously paid for by the emergency justice, judge, or recall judge, a receipt delineating the fees paid.



The fees paid pursuant to this section shall only be those required by the North Carolina State Bar, not to include other costs associated with continuing legal education courses such as travel, lodging, or meals.



SECTION 16.7.(c)  This section becomes effective July 1, 2024, and applies to individuals serving as emergency justices, emergency appellate and trial court judges, and emergency recall judges on or after that date.



 



PART XVII. INDIGENT DEFENSE SERVICES [RESERVED]



 



PART XVIII. JUSTICE



 



PROHIBIT NONCITIZENS FROM RECEIVING CERTAIN PUBLIC SAFETY CERTIFICATIONS



SECTION 18.1.(a)  Article 1 of Chapter 17C of the General Statutes is amended by adding a new section to read:



§ 17C‑17.  Prohibition against certifying noncitizens.



The Commission shall not certify or recertify any person under this Chapter that is not a citizen of the United States.



SECTION 18.1.(b)  G.S. 17C‑10(c) reads as rewritten:



(c)      In addition to the requirements of subsection (b) of this section, the Commission, by rules and regulations, shall fix other qualifications for the employment, training, and retention of criminal justice officers including minimum age, education, physical and mental standards, citizenship, good moral character, experience, and such other matters as relate to the competence and reliability of persons to assume and discharge the responsibilities of criminal justice officers. The Commission shall prescribe the means for presenting evidence of fulfillment of these requirements. The Commission shall require the administration of a psychological screening examination, including a face‑to‑face, in‑person interview conducted by a licensed psychologist, to determine the criminal justice officer's psychological suitability to properly fulfill the responsibilities of the criminal justice officer. If face‑to‑face, in‑person is not practicable, the face‑to‑face evaluation can be virtual as long as both the audio and video allow for a professional clinical evaluation in a clinical environment. The psychological screening examination shall be given (i) prior to the initial certification or (ii) prior to the criminal justice officer performing any action requiring certification by the Commission.



Where minimum educational standards are not met, yet the individual shows potential and a willingness to achieve the standards by extra study, they may be waived by the Commission for the reasonable amount of time it will take to achieve the standards required. Such an educational waiver shall not exceed 12 months.



SECTION 18.1.(c)  Article 1 of Chapter 17E of the General Statutes is amended by adding a new section to read:



§ 17E‑6.6.  Prohibition against certifying noncitizens.



The Commission shall not certify or recertify any person under this Chapter that is not a citizen of the United States.



SECTION 18.1.(d)  G.S. 17E‑7(c) reads as rewritten:



(c)      In addition to the requirements of subsection (b) of this section, the Commission, by rules and regulations, may fix other qualifications for the employment and retention of justice officers including minimum age, education, physical and mental standards, citizenship, good moral character, experience, and such other matters as relate to the competence and reliability of persons to assume and discharge the responsibilities of the office. The Commission shall prescribe the means for presenting evidence of fulfillment of these requirements. The Commission shall require the administration of a psychological screening examination, including a face‑to‑face, in‑person interview conducted by a licensed psychologist, to determine the justice officer's psychological suitability to properly fulfill the responsibilities of the justice officer. If face‑to‑face, in‑person is not practicable, the face‑to‑face evaluation can be virtual as long as both the audio and video allow for a professional clinical evaluation in a clinical environment. The psychological screening examination shall be given (i) prior to the initial certification or (ii) prior to the criminal justice officer performing any action requiring certification by the Commission.



Where minimum educational standards are not met, yet the individual shows potential and a willingness to achieve the standards by extra study, they may be waived by the Commission for the reasonable amount of time it will take to achieve the standards required. Upon petition from a sheriff, the Commission may grant a waiver of any provisions of this section (17E‑7) for any justice officer serving that sheriff.



SECTION 18.1.(e)  This section is effective when it becomes law and applies to certifications and recertifications awarded on or after that date.



 



Remove Certain Constraints for Lateral Transfers of Law Enforcement Officers



SECTION 18.2.(a)  Article 1 of Chapter 17C of the General Statutes is amended by adding a new section to read:



§ 17C‑10.2.  Transfer of certified officers.



(a)        Notwithstanding any other provision of law, the Commission, the Division, and a law enforcement agency considering the application for employment of a criminal justice officer shall be granted access to and allowed to review the applicant's personnel file maintained by any law enforcement agency holding, or who has previously held, the applicant's certification, if each of the following circumstances exists:



(1)        The applicant currently holds a general or probationary certification from the Commission or the Sheriffs' Education and Training Standards Commission.



(2)        The applicant has less than a 12‑month break in service.



(3)        The applicant is applying to obtain certification with another law enforcement agency.



(b)        A law enforcement agency and its personnel providing access and review of a personnel file pursuant to this section shall not be held civilly or criminally liable for doing so.



SECTION 18.2.(b)  Article 2 of Chapter 17E of the General Statutes is amended by adding a new section to read:



§ 17E‑7.1.  Transfer of certified officers.



(a)        Notwithstanding any other provision of law, the Commission, the Division, and a sheriff's office considering the application for employment of a justice officer shall be granted access to and allowed to review the applicant's personnel file maintained by any law enforcement agency holding, or who has previously held, the applicant's certification, if each of the following circumstances exist:



(1)        The applicant currently holds a general or probationary certification from the Commission or the Criminal Justice Education and Training Standards Commission.



(2)        The applicant has less than a 12‑month break in service.



(3)        The applicant is applying to obtain certification with another law enforcement agency.



(b)        A sheriff's office and its personnel providing access and review of a personnel file pursuant to this section shall not be held civilly or criminally liable for doing so.



SECTION 18.2.(c)  This section is effective when it becomes law and applies to applications for employment submitted before, on, or after that date.



 



Exempt Certain Law Enforcement Training Materials and eligibility guideline determinations from Rule Making



SECTION 18.3.  G.S. 150B‑1(d) reads as rewritten:



(d)      Exemptions from Rule Making. – Article 2A of this Chapter does not apply to the following:



…



(6a)      The Criminal Justice Education and Training Standards Commission with respect to establishing minimum standards standards, all course‑related materials for entry‑level and in‑service training for criminal justice officers under G.S. 17C‑6(a)(14).training, and all other Commission courses pursuant to G.S. 17C‑6, and identifying or classifying misdemeanors for purposes of certification eligibility and continued eligibility under G.S. 17C‑6(a)(3) and G.S. 17C‑1.



(6b)      The Sheriffs' Education and Training Standards Commission with respect to establishing minimum standards standards, all course‑related materials for entry‑level and in‑service training for justice officers under G.S. 17E‑4(a)(11).training, and all other Commission courses pursuant to G.S. 17E‑4, and identifying or classifying misdemeanors for purposes of certification eligibility and continued eligibility under G.S. 17E‑4(a)(3) and G.S. 17E‑9.



….



 



Allowing for Expedited Process in Certain Law Enforcement Officer Certification Determinations



SECTION 18.4.  The Criminal Justice Education and Training Standards Commission and the Sheriffs' Education and Training Standards Commission may adopt temporary rules under G.S. 150B‑21.1 to provide an expedited procedure allowing criminal justice officers and justice officers currently certified in this State or another state, or who have been certified within the previous 12‑month period in this State or another state, to transfer the certification to a different criminal justice agency within this State. If either Commission adopts a temporary rule pursuant to this section, that Commission shall adopt a corresponding permanent rule by June 30, 2025.



 



PART XIX. ADULT CORRECTION [RESERVED]



 



PART XIX‑A. DEPARTMENT OF ADULT CORRECTION ADMINISTRATION



 



Amend Reporting Requirements



SECTION 19A.1.(a)  G.S. 20‑196.5 is recodified as G.S. 143B‑1504 and reads as rewritten:



§ 143B‑1504.  Report on gang prevention recommendations.



The State Highway Patrol, Department of Adult Correction, in conjunction with the State Bureau of Investigation and the Governor's Crime Commission, shall develop recommendations concerning the establishment of priorities and needed improvements with respect to gang prevention and shall report those recommendations to the chairs of the House of Representatives and Senate Appropriations Committees on Justice and Public Safety and to the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety on or before March 1 of each year.



SECTION 19A.1.(b)  G.S. 143B‑1470(c) reads as rewritten:



(c)      The Department of Adult Correction shall report quarterly annually by September 1 of each year to the Joint Legislative Oversight Committee on Justice and Public Safety and the chairs of the Justice and Public Safety Appropriations Committees on:on all of the following:



(1)        The percentage of the total inmates requiring hospitalization or hospital services who receive that treatment at each hospital.



…



(4a)      The volume of scheduled and emergent services listed by hospital and, of that volume, the number of those services that are provided by contracted and noncontracted providers.



(4b)      The volume of scheduled and emergent admissions listed by hospital and, of that volume, the percentage of those services that are provided by contracted and noncontracted providers.



(5)        The volume of inpatient medical services provided to Medicaid‑eligible inmates, the cost of treatment, the estimated savings of paying the nonfederal portion of Medicaid for the services, and the length of time between the date the claim was filed and the date the claim was paid.



(5a)      The status of the implementation of the claims processing system and efforts to address the backlog of unpaid claims.



(6)        The hospital utilization, including the amount paid to individual hospitals, the number of inmates served, the number of claims, and whether the hospital was a contracted or noncontracted facility.



(7)        The total cost and volume for the previous fiscal quarter for emergency room visits originating from Central Prison and NCCIW Hospitals to UNC Hospitals, UNC Rex Healthcare, and WakeMed Hospital.



(8)        The total payments for Medicaid and nonMedicaid eligible inmates to UNC Hospitals, UNC Rex Healthcare, and WakeMed Hospital, including the number of days between the date the claim was filed and the date the claim was paid.



(9)        A list of hospitals under contract.



(10)      The reimbursement rate for contracted providers. The Department shall randomly audit high‑volume contracted providers to ensure adherence to billing at the contracted rate.



Reports submitted on August 1 shall include totals for the previous fiscal year for all the information requested.



SECTION 19A.1.(c)  This section is effective when it becomes law and applies to reports submitted on or after that date.



 



Further Delineate Reimbursement Procedures for Roadway Cleanup Program



SECTION 19A.2.(a)  Section 19C.10 of S.L. 2021‑180 reads as rewritten:



SECTION 19C.10.(a)  Notwithstanding G.S. 162‑58, and consistent with the provisions of Article 3 of Chapter 148 of the General Statutes, sheriffs having custody of inmates under the Statewide Misdemeanant Confinement Program may utilize those inmates to maintain the cleanliness of areas along local and State roadways.



SECTION 19C.10.(b)  For purposes of this section, the following definitions shall apply:



(1)        Housing night. – A night spent by an individual inmate in the custody of the sheriff pursuant to the Statewide Misdemeanant Confinement Program.



(1)(2)   Road mile. – A section of roadside equaling 1 mile in length, not including any roadsides that are parallel to that section.



(2)(3)   Work hour. – An hour worked by an individual inmate, including time spent traveling to and from work sites and break time taken during work efforts.



SECTION 19C.10.(c)  A sheriff that utilizes inmates pursuant to subsection (a) of this section shall coordinate with the Department of Transportation before and after a cleanup project to ensure that cleanup efforts are not unnecessarily duplicated by either the sheriff's office or the Department of Transportation. The sheriff shall also ensure that all inmates utilized pursuant to this subsection are appropriately guarded while working and that food, water, and bathroom facilities are accessible in reasonable amounts and times.



SECTION 19C.10.(d)  A sheriff that utilizes inmate labor pursuant to subsection (a) of this section for a combined total of 500 work hours in one calendar month exceeding the minimum required work hours under subsection (d1) of this section shall submit a record documenting those work hours and the corresponding road miles to the North Carolina Sheriffs' Association and Association. A sheriff meeting the requirements of this section shall be reimbursed by the Statewide Misdemeanant Confinement Program for caring for and housing the inmates of the Statewide Misdemeanant Confinement Program at a rate of at least sixty seventy dollars ($60.00) ($70.00) per day, per inmate held under the Statewide Misdemeanant Confinement Program for each calendar month in which 500 the minimum required work hours were completed. Participating sheriffs shall comply with all requirements established by the Statewide Misdemeanant Confinement Program necessary to certify the work hours worked and housing nights and to confirm funding availability. This increased reimbursement rate shall be paid to participating sheriffs only until the funds that have been specifically appropriated by the General Assembly for this purpose are exhausted. Funds allocated under this section shall not revert but shall be available until expended.



SECTION 19C.10.(d1)  The minimum required work hours to be reimbursed at the increased rate per day under subsection (d) of this section shall be as follows:



(1)        Fifty work hours, if the sheriff did not exceed 100 housing nights in the calendar month three months prior to the calendar month in which the work hours occur.



(2)        One hundred fifty work hours, if the sheriff totals 101 to 200 housing nights in the calendar month three months prior to the calendar month in which the work hours occur.



(3)        Two hundred fifty work hours, if the sheriff totals 201 to 300 housing nights in the calendar month three months prior to the calendar month in which the work hours occur.



(4)        Three hundred fifty work hours, if the sheriff totals 301 to 400 housing nights in the calendar month three months prior to the calendar month in which the work hours occur.



(5)        Four hundred fifty work hours, if the sheriff totals 401 to 500 housing nights in the calendar month three months prior to the calendar month in which the work hours occur.



(6)        Five hundred work hours, if the sheriff exceeds 500 housing nights in the calendar month three months prior to the calendar month in which the work hours occur.



SECTION 19C.10.(e)  The North Carolina Sheriffs' Association shall report no later than the fifteenth day of each month to the Office of State Budget and Management and the Fiscal Research Division regarding (i) the counties with sheriffs' offices that utilized inmate labor pursuant to subsection (a) of this section, (ii) the number of total work hours performed by inmates in each participating county, and (iii) the number of road miles cleaned by inmates in each participating county.county, and (iv) the number of housing nights logged in each participating county.



SECTION 19C.10.(f)  The North Carolina Sheriffs' Association shall report no later than October 1 of each year to the chairs of the House of Representatives Appropriations Committee on Justice and Public Safety, the chairs of the Senate Appropriations Committee on Justice and Public Safety, the chairs of the Joint Legislative Oversight Committee on Justice and Public Safety, and the chairs of the Joint Legislative Transportation Oversight Committee regarding (i) the counties with sheriffs' offices that utilized inmate labor pursuant to subsection (a) of this section, (ii) the number of total work hours performed by inmates in each participating county, and (iii) the number of road miles cleaned by inmates in each participating county.county, and (iv) the number of housing nights logged in each participating county.



SECTION 19C.10.(g)  This section is effective when it becomes law.



SECTION 19A.2.(b)  This section is effective when it becomes law and applies to work hours performed in the next calendar month after this section becomes effective.



 



PART XIX‑B. PRISONS [RESERVED]



 



PART XIX‑C. COMMUNITY SUPERVISION [RESERVED]



 



PART XIX‑D. REHABILITATION AND REENTRY [RESERVED]



 



PART XIX‑E. PUBLIC SAFETY [RESERVED]