Bill Summary for H 1163 (2025-2026)

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Summary date: 

May 1 2026

Bill Information:

View NCGA Bill Details2025-2026 Session
House Bill 1163 (Public) Filed Thursday, April 30, 2026
AN ACT TO PROVIDE FOR THE CONTINUATION AND EXPANSION OF PROGRAMS AND SERVICES PROVIDED BY THE STATE FOR WORKFORCE DEVELOPMENT AND TO APPROPRIATE FUNDS FOR THOSE PURPOSES.
Intro. by Blackwell, Lambeth, Paré, Schietzelt.

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Bill summary

Part I titles the act as the Workforce Act of 2026 and specifies the purpose of the act's appropriations.

Part II.

States legislative findings. Appropriates $3.1 million in recurring funds from the General Fund to the Community Colleges System Office (Office) for 2026-27 to administer the ApprenticeshipNC program.

Part III.

States legislative findings. Appropriates $350,000 in recurring funds from the General Fund to the Department of Commerce (Department) for 2026-27 to be used for operational expenses and staffing to support NC Workforce Credentials pursuant to the act and state law. Directs the Department to engage employers to provide workforce data and link data on industry-valued credentials to five labor market outcomes, including wage outcomes and work location. Requires consultation with the Office, UNC System, and other stakeholders to align with the rules and regulations of federal Workforce Pell Grants and institutionalize workforce data sharing across State government. Directs the Department to require entities issuing industry-valued credentials to submit data to the NC Collaboratory and NC Longitudinal Data System for incorporation into the System's warehouse. Requires the Department to give substantial weight to demonstrated wage outcomes and evidence that a credential provides students a positive return on investment. Authorizes the Department to use up to $50,000 each fiscal year for outreach and communications.

States legislative findings. Amends GS 115D-10.19 to authorize the Office to use up to 4% of funds appropriated to the NC Community College Short-Term Workforce Development Grant Program for administration of the Program. Appropriates $1 million in recurring funds from the General Fund to the Office for 2026-27 for the NC Community College Short-Term Workforce Development Grant Program.

Part IV.

Directs the State Education Assistance Authority to incorporate private colleges and universities in the State into the common digital transcript developed pursuant to SL 2023-134, Section 8A.15. Requires consultation with specified State entities. Directs the SEAA to report to the specified NCGA committee by March 15, 2027. Specified required content.

States legislative findings. Directs the UNC System Office to expand the current initiative for the 2026-27 academic year to accelerate the transfer of course credits among postsecondary institutions using postsecondary transfer technology. Requires consultation with the Office and Department of Information Technology. Requires the expansion to provide and improve technology at participating institutions to simplify the credit transfer process, compare credit transfer options, and make decision making more efficient for students. Appropriates $2.5 million from the Information Technology Reserve to the UNC Board of Governors (BOG) for 2026-27 for the expanded initiative and requires the funds be used to identify and develop programs to accelerate the transfer of postsecondary course credits. Directs the UNC System Office to report to the specified NCGA committee by March 15, 2027. Specifies required content.

Part V.

States legislative findings. Appropriates $200,000 in nonrecurring funds and $585,000 recurring funds from the Information Technology Reserve to the Department for 2026-27 to contract with Year13, Inc. to replatform, host, and maintain the NC Careers website on its proprietary system. Details required contractual terms regarding unified infrastructure requirements.

Part VI.

Directs the NC Collaboratory to evaluate programs and initiatives established in Parts I through V of the Act each academic year through 2029-30 and annually report to the specified NCGA committee by March 15. Specifies required content. Appropriates $600,000 from the General Fund to the UNC BOG for 2026-27 to be allocated to the Collaboratory for required evaluation and reporting.

Part VII.

Directs the Superintendent of Public Instruction to create an Annual Career Development Plan Pilot Program (program) for students entering seventh grade at select schools during the 2026-27 and 2027-28 school years through the students' graduation for evaluation of Career Development Plans (Plans) as defined and described. Provides for selection of 12 partnered schools, defined as a middle school and high school governed by a local board of education where at least half of the middle school student population is assigned to attend the associated high school. Details requirements for partnered schools and local boards in ensuring each student completes and reviews Plans each year and includes parental involvement and notice as specified. Lists information partnered schools are required to provide students by grade to inform annual Plan updates. Requires the NC Collaboratory to develop reporting requirements for partnered schools and to report to the specified NCGA committee by August 15, 2027, and annually thereafter on the Program, with a final report by August 15, 2033. Applies beginning with the 2026-27 school year.

Part VIII.

Enacts GS 115C-302.9 to direct the State Board of Education (State Board) to establish a consolidated teach bonus program to reward teacher performance and encourage student learning and improvement. Directs the Department of Public Instruction (DPI) to administer the bonus to qualifying teachers whose salaries are supported from State funds in January of each year based on data from the prior school year. Defines seven terms. Defines qualifying teacher as an eligible teacher who either (1) remains employed teaching in the same qualifying public school unit or Virtual Public School program as specified or (2) retired after the last day of the school year in which the data was collected after attaining specified age or years of service. Defines qualifying public school unit to mean local school administrative units, charter schools, regional schools, and elementary and secondary schools operated by UNC. Grants a $50 bonus for qualifying advanced course teachers for each student taught in each advanced course who receives one of three described scores. Grants a bonus of either $25 or $50 for qualifying career and technical education teachers for students taught in courses that led to an industry certification or credential. Directs the Department of Commerce to assign a value ranking for CTE courses based on academic rigor and employment value. States weight of each basis and lists elements to be used to determine each. Directs DPI to provide bonuses to eligible teachers based on student growth as well as a bonus for employment in a unit where three or fewer total teachers were employed in the grade level and the student growth index from the previous school year exceeded expected growth in specified grades and subjects. Sets the bonus amount or allocation of specified funds based on criteria justifying the teacher's qualification set forth in the definition of eligible growth teacher, with set bonuses ranging from $2,000 to $7,000 and specified funds for equal distribution at $5 million for both statewide and local growth bonuses. Establishes caps for specified qualifying teacher bonuses and provides for receipt of bonuses under two of the qualifying criteria. Clarifies that bonuses are not compensation. Directs the NC Collaboratory to study the bonus program's effect on teacher performance and retention and annually report to the specified NCGA leaders, committee, and division by March 15. Specifies required content. Effective July 1, 2026, and applies beginning with bonuses awarded in January of 2028 based on data from the 2026-27 school year.

Part IX.

Effective July 1, 2026.