Conference report deletes the contents of the previous edition and replaces it with the Appropriations Act of 2023. We will not be including a summary of the Appropriations Act. For the content of the bill, please follow the View NCGA Bill Details link. Further information on the budget, including the committee report, can be found on the “News” section of the General Assembly’s website at: https://www.ncleg.gov/News(link is external).

Senate committee substitute to the 3rd edition, as amended, makes various changes. We will not be including a summary of this version of the Appropriations Act. For the content of the bill, please follow the View NCGA Bill Details link. Further information on the budget, including the committee report, can be found on the “News” section of the General Assembly’s website at: https://www.ncleg.gov/News(link is external).

House amendments to the 2nd edition make the following changes.

Part VI. Community College System

Section 6.2 High-Cost Workforce Programs Start-Up Funds

Amendment #22 amends the allocation of funds from the Fund for High-Cost Workforce Programs to require at least (was, up to) $10 million be used for nursing programs.

Part VII. Public Instruction  

Section 7.21 Math Interventions and Fourth and Fifth Grade Class Size Requirements Section  

Amendment #12 amends the section’s effective date to specify that Sections 7.21(d) (amendments to GS 115C-301 pertaining to allocation of teachers and class size), 7.21(e) (amendments to GS 115C-47(10) pertaining to class size), 7.21(f) (amendments to GS 115C-276(k) pertaining to organization reports), and 7.21(g) (amendments to GS 115C-301 pertaining to class size flexibility) become effective beginning with the 2024-25 school year.

Section 7.25 Schools for the Deaf/Administration

Amendment #22 removes the entire section from the act.

Section 7.34

Amendment #22 changes the name of the section to Online Classroom Safety and Anti-bullying and making the following changes. Reduces the amount allocated to support contracting with third parties for technology to mitigate cyberbullying, monitor student internet activity, monitor classroom education devices, and assist with suicide prevention from $10 million to $7.5 million and reduces the amounts of the listed allocations. 

Requires that of the funds appropriated by this act from the ARPA Temporary Savings Fund to the Department of Public Instruction for the 2023-25 fiscal biennium, $2.5 million be allocated in each year of the fiscal biennium for the Department to contract with a third party to provide public school units the services to prevent, detect, and remediate advanced malware threats.

Section 7.36 School Safety Grants

Amendment #22 expands upon purposes of the School Safety Grants Program to also include providing grants in each fiscal year of the 2023-25 biennium to subsidize the School Resource Office Grants Program.

Amendment #22 adds the following. Allows the Superintendent, if they receive applications for grants for school resource officers under GS 115C-105.60 in excess of the amount of funding appropriated for school resource officer grants in the 2023-25 fiscal biennium, to use the funds appropriated in this act from the ARPA Temporary Savings Fund to the Department of Public Instruction for the grants provided for in this Program to cover the unmet need for school resource officer grants.

Section 7.44 Teacher Apprentice Grant Program

Amendment #22 adds a new section providing as follows.

Requires the Department of Public Instruction to establish a Teacher Apprentice Grant Program for the 2023-25 fiscal biennium to provide grants to local school administrative units to award funds for (1) the cost of tuition at an educator preparation program for eligible teacher apprentices and (2) salary supplements for teacher apprentices who become teachers in the unit. Defines eligible teacher apprentice as an eligible high school graduate who: is employed as a teacher apprentice in an elementary school in the same local school administrative unit where he or she graduated high school, is enrolled part-time or full-time in a recognized educator preparation program pursuing coursework toward a college degree that will result in teacher licensure, and qualifies as a resident for tuition purposes under the criteria in GS 116-143.1 and in accordance with the coordinated and centralized residency determination process administered by the Authority. Awards are for up to $4,600 per academic semester, per eligible teacher apprentice, up to four academic years to defray the costs of tuition and fees for part-time or full-time coursework taken while employed in the local school administrative unit as an eligible teacher apprentice. Gives any eligible teacher apprentice who becomes a licensed teacher and accepts employment in the same local school administrative unit a salary supplement each month during his or her first four years of employment as a teacher, without a break in service, in the amount specified. Sets out requirements for applications and for which are to be given priority. Sets out additional criteria governing the funds, including requiring local boards of education receiving grants under the Program to make efforts to promote the Program to high school students enrolled in a Career and College Promise Transfer Pathway Program. Requires DPI to establish criteria for program eligibility and sets out standards for the criteria. Requires local boards of education participating in the Program to enter into a memorandum of understanding with the institution of higher education in which the award recipient is enrolled and sets out required content for the MOU. Requires DPI to report annually to the specified NCGA committee and sets out report requirements. Increases funds appropriated in this act  to DPI by $5 million for each year of the 2023-25 biennium to establish the program.

Section 7.46 Teacher Assistant Completion Grants Program

Amendment #22 adds that funds appropriated in this act for the 2023-25 biennium to DPI for these grants is decreased by $5 million in each year of the 2023-25 biennium.

Section 7.49 Study for Students with Extraordinary Costs/Report  

Amendment #3 requires the Department of Public Instruction (DPI) to study the following ten matters: (1) a method of improving options for children with disabilities with intensive needs that require private placement in an Approved School (a private school with approved nonpublic education programs providing special education for students with intensive needs) consistent with the student's individualized education program (IEP); (2) a method of determining that placement in an Approved School is the means that most appropriately suits the child's individual needs; (3) extraordinary costs incurred by the public school unit by student placement in Approved Schools; (4) methods of creating a network of Approved Schools into which a child with disabilities with intensive needs may be placed consistent with the student's IEP; (5) a method of prioritizing dispersal of funds to public school units to assist with the cost associated with enrolling in an Approved School in early grades to incentivize public school units to enroll students in the Approved Schools at the earliest appropriate age; (6) recommendations on the proportion of a student's extraordinary cost to be paid from local, State, and federal sources, respectively, and to identify existing funds at each level that may be available for the purposes studied pursuant to this section; (7) a method to monitor overidentification of children with disabilities with intensive needs; (8) methods to allow for Medicaid reimbursement for additional services, such as transportation, and expanding the eligible age range to receive reimbursement for services; (9) an estimated range of costs associated with implementing the studied methods; and (10) the advisability of one or more pilot programs with one or more Approved Schools. Requires DPI to report the results of the study and any legislative recommendations to the specified NCGA committees by October 15, 2023.  

Section 7.49(a) Montessori Teaching License 

Amendment #6 amends GS 115C-270.20(a) (pertaining to licensure requirements for teacher classes) by authorizing a Montessori license. Specifies that a Montessori license only allows the holder of the license to teach in a school that uses Montessori instruction as its primary method of instruction. Sets forth credentialing, education, and examination criteria. Specifies that holders of a Montessori license cannot teach in non-Montessori schools unless they hold another State license for public school teachers. Applies to applicants for Montessori licenses on or after the date the act becomes law.  

Part VIII. The University of North Carolina System

Section 8.8 Educational Opportunities Pilot Program

Amendment #2 makes the following changes. Requires that NC State University develop the College of Educational Opportunities Pilot Program (Program) in the 2023-24 fiscal year and operate it for each year of the 2023-25 biennium while NC Central University must adapt and operate the Program that was developed by NC State for use in the 2024-25 fiscal year. Amends the allocation of funds appropriated to the UNC Board of Governors for this Program, so that $3 million is allocated for 2023-24 to NC State to develop and operate the Program, $3 million is allocated to NC State University in 2024-25 to operate the Program and $3 million is allocated to NC Central University to adapt and operate the Program in 2024-25. Makes additional clarifying changes. Adds that the funds allocated to UNC-Institutional Program from the ARPA Temporary Savings Fund must be increased by $3 million for 2024-25, and that the funds appropriated in this act for the 2024-25 fiscal year to the UNC Board of Governors for education and workforce training opportunities for individuals with disabilities must be increased by $3 million in requirements and receipts.

Part IX-M. DHHS Block Grants

Section 9M.1 Child Care and Development Fund Block Grant

Amendment #22 decreases the amount referred to as being appropriated in the Child Care and Development Block Grant to the Division of Child Development and Early Education to establish new positions.

Part IX-E. Health Benefits

Section 9E.17 Expedited Medicaid Preferred Drug List Review for Drugs Treating Serious Mental Illness

Amendment #1 amends proposed GS 108A-54.2 as follows. Amends the statute’s title. Requires that the Department of Health and Human Services (DHHS) provide coverage of a new prescription medication approved by the FDA that becomes available to the public if the manufacturer is enrolled in the Medicaid Drug Rebate Program and the medication is approved for the treatment of any of the seven already listed conditions. Provides that if the new prescription medication approved for the treatment of any of the listed conditions is not manufactured by a manufacturer enrolled in the Medicaid Drug Rebate program, then no later than the end of next calendar quarter following the date the medication became available to the public, DHHS must consult with the Physician’s Advisory Group and submit a proposed policy to the Preferred Drug List (PDL) Policy Review Panel on the inclusion of the new medication as either a preferred or non-preferred drug on the PDL (was, DHHS must, within 90 days of the date a new prescription medication approved by the FDA becomes available to the public, consult with the Physician’s Advisory Group and submit a proposed policy to the Preferred Drug List (PDL) Policy Review Panel on the inclusion of the new medication on the Medicaid PDL if the medication is approved for treatment of any of the seven listed conditions).

Also amends the section to require that the PDL Policy Review Panel meet no less than once a quarter.

Part XI. Commerce

Section 11.7 Golden Leaf Shell Building Pilot Program

Amendment #22 requires the funding to distributed to Columbus County instead of Cabarrus County.

Section 11.8 NASCAR Economic Impact Study

Amendment #22 adds that funds appropriated in this act from the projected interest in the State Fiscal Recovery Reserve to the Department for the NASCAR All Star Race may be used by the grant recipient to cover expenditures made prior to the effective date of this act. Amends the section's title.

Part XII. Environmental Quality  

Section 12.2A Redirect Certain Prior Water and Wastewater Funds 

Amendment #15 redirects the funds allocated to the Town of Norwood for the expansion of Lake Tillery by Section 12.13(a)(3a) of SL 2021-180 to Montgomery County instead for a construction grant for a water or wastewater project. Exempts the redirected funds from the $3 million limit set forth on project grants in GS 159G-36(c)(3)(water infrastructure loan and grant limits). Specifies that excess funds will revert to the Drinking Water Reserve and the Wastewater Reserve and may be used for other eligible projects pertaining to water and wastewater as set forth in GS 159G-34(a)(2)-(3a) and GS 159G-33(a)(2)-(3a).  

Part XIV. Natural and Cultural Resources

Section 14.5 Saluda Grade Rail Corridor

Amendment #2 adds the following content.

Sets out NCGA findings related to the Saluda Grade Railroad and sets out the purpose of this section. Requires that funds appropriated in this act from the projected interest in the State Fiscal Recovery Reserve be increased by $6 million in 2023-24 and $11 million for 2024-25 with the funds transferred to the Department of Natural and Cultural Resources (DNCR) for grants to Polk County Community Foundation, Inc. (Foundation) to be allocated in the specified amounts for: (1) the purchase of the Saluda Grade rail corridor (as defined) in Henderson and Polk counties and related transaction costs; (2) an assessment, conceptual design, and preliminary engineering of the Saluda Grade rail corridor; and (3) study of the potential of a multi-purpose active tourism rail and hiking corridor from Hendersonville to either Tryon or Saluda, and if it is determined to be feasible, develop a plan and preliminary engineering.

Requires the Foundation to establish a Saluda Grade Conservation Council to oversee the disbursement of these funds. Sets out membership requirements. Requires the Foundation to disburse funds at the direction of the Council and provides that the Council ceases to exist when the funds in this section have been disbursed and all required documentation has been submitted.

Requires DNCR to enter into a Memorandum of Understanding (MOU) with the Foundation by September 1, 2023, on the long-term ownership structure, management, and improvement of the rail corridor. Sets out requirements for the MOU.

Requires the Foundation to make an interim report by March 1, 2024, and a final report by October 1, 2025, to DNCR and the specified NCGA committee and division on the acquisitions of and improvements to the rail corridor. Authorizes DNCR to add the trail on the rail corridor to the State Parks System as a State trail, once the acquisition is complete. Sets out additional responsibilities related to the trail.

Section 14.6 The Great Trails Fund

Amendment #22 changes the name of the Fund to the Great Trails State Program. Makes a conforming change to the section's title.

Part XVIII. Justice  

Section 18.1A Create Legislative Study Committee on the State Crime Lab 

Amendment #13 establishes a Joint Legislative Study Committee on the State Crime Lab (Committee). Directs the Committee to study and propose possible administrative and organizational locations for the State Crime Lab within the state government.  Specifies that the Committee will consist of 12 members. Specifies that six members will be appointed by the Speaker of the House of Representatives, with five of those appointees to be members of the General Assembly, two of whom must be members of the minority party. Directs that one Speaker appointee must be a member of the public that either currently serves or at one time served in a scientific or managerial role at the State Crime Lab. Specifies that the other six members will be appointed by the President Pro Tempore of the Senate with the same composition requirements. Specifies that the Speaker and President Pro Tempore will each appoint a Committee co-chair. Sets quorum rules and procedure for appointment of vacancies. Authorizes per diem, subsistence, and travel allowance for Committee members.  

Authorizes the Committee to meet in the State Legislative Building or Legislative Office Building. Provides for professional staff to assist the work of the Committee. Authorizes the Committee to exercise all powers authorized to investigating committees under GS 120-19 and GS 120-19.1 through GS 120-19.4, including the power to request documents, data, and information from officers, agents, agencies, and departments of the State and to subpoena documents.  

In developing its proposals for administrative and organizational locations for the State Crime Lab, directs the Committee to evaluate at minimum whether the location would best serve the interests of justice (including the lab’s ability to remain an unbiased and objective source of evidentiary analysis) and whether the location will provide the most operational efficiencies. Permits the Committee to report its interim findings and recommendations in an interim report to the General Assembly by April 1, 2024, with a final report due by December 1, 2024. Specifies that the Committee terminates at the earlier of the submission of its final report or December 1, 2024.  

Part XIX-F. Department of Public Safety Administration

Section 19F.2 Allocation of Grant Funds to Various Sheriffs' Offices and Police Departments

Amendment #22 reduces the amount of the funds that are to be allocated to (1) sheriffs' offices in counties with a population of fewer than 230,000 and (2) municipal police departments employing 1 to 79 full-time sworn law enforcement officers from $10 million to $9 million.

Part XXIV. Budget and Management--Special Appropriations

Section 24.4 OSBM/Funds for Carolinas AGC Programs

Amendment #22 by changing the recipient of the appropriation from Carolinas AGC, Inc., to GAGC Foundation, Inc.

Section 24.5 OSBM/Grant to North Carolina Sports Legacy Foundation

Amendment #22 adds the following. Requires that the funds budgeted for a directed grant to the North Carolina Sports Legacy Foundation in the amount of $22 million for 2023-24 and $8 million for 2024-25 be used for a directed grant to the North Carolina Sports Legacy Foundation for capital needs.

Part XXX. Insurance 

Section 30.4 DOI/Continue Firefighters’ Health Benefits Pilot Program  

Amendment #8 amends Section 30.4A(a) concerning the Firefighters’ Health Benefits Pilot Program (SL 2021-180) as follows. Effective January 1, 2024, requires the Department of Insurance to begin administering the pilot program instead of purchasing private insurance for that purpose. Authorizes the Department to use up to 5% of the funds appropriated for the pilot program in this act for the purpose of hiring additional staff to aid in administering the pilot program in-house and conducting an independent audit of the pilot program. Requires that the results of the independent audit to be submitted to the General Assembly and the Governor by no later than July 1, 2025, along with the report required by Section 30.4A(f).  

Amendment #22 provides that if a firefighter, during the five years of service in a North Carolina fire department, experiences a lapse of no more than six months, the firefighter remains eligible for benefits under the pilot program.

Part XXXVI. Treasurer 

Section 36.1 Public Safety Employees’ Death Benefits Section  

Amendment #9 divides Section 36.1 into two sections, 36.1(a) and new 36.1(b). New Section 36.1(b) provides that the changes to GS 143-166.2 are effective retroactively to January 1, 2022, and apply to applicable deaths of covered persons occurring on or after that date when the covered person was en route to, engaged in, or returning from duty at the time of the covered person's death. 

Part XLI. Transportation

Section 41.16 Transportation Committee Report Corrections

Amendment #22 adds the following. Notwithstanding the Committee Report: (1) funds for the construction of the "US 1 Pedestrian Bridge" must be transferred from the projected interest accrued to the State Fiscal Recovery Reserve and must be used for the construction of a pedestrian bridge over Highway 1 at the Rockingham Speedway in Richmond County; (2) funds for the construction of the "Pedestrian Bridge US 49" must be transferred from the projected interest accrued to the State Fiscal Recovery Reserve; and (3) funds for the construction of the "Interchange Wilkes County" must be transferred from the projected interest accrued to the State Fiscal Recovery Reserve.