2022 North Carolina Budget

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2021
H D
HOUSE BILL 103
Committee Substitute Favorable 3/24/21
Committee Substitute #2 Favorable 4/27/21
Proposed Conference Committee Substitute H103-CCSMLxr-9 [v.1]
06/28/2022 03:21:43 PM
Short Title: 2022 Appropriations Act. (Public)
Sponsors:
Referred to:
February 19, 2021
1 A BILL TO BE ENTITLED
2 AN ACT TO MODIFY THE CURRENT OPERATIONS APPROPRIATIONS ACT OF 2021
3 AND TO MAKE OTHER CHANGES IN THE BUDGET OPERATIONS OF THE STATE.
4 The General Assembly of North Carolina enacts:
5
6 PART I. TITLE AND INTRODUCTION
7
8 TITLE OF ACT
9 SECTION 1.1. This act shall be known as the "Current Operations Appropriations
10 Act of 2022."
11
12 INTRODUCTION
13 SECTION 1.2. The appropriations made in this act are for maximum amounts
14 necessary to provide the services and accomplish the purposes described in the budget in
15 accordance with the State Budget Act. Savings shall be effected where the total amounts
16 appropriated are not required to perform these services and accomplish these purposes, and the
17 savings shall revert to the appropriate fund at the end of each fiscal year, except as otherwise
18 provided by law.
19
20 PART II. CURRENT OPERATIONS AND EXPANSION/GENERAL FUND
21
22 GENERAL FUND APPROPRIATIONS
23 SECTION 2.1.(a) Appropriations from the General Fund for the 2022-2023 fiscal
24 year set out in Section 2.1(a) of S.L. 2021-180 are repealed. Appropriations from the General
25 Fund for the budgets of the State departments, institutions, and agencies, and for other purposes
26 as enumerated, are made for the 2022-2023 fiscal year, according to the following schedule:
27
28 Current Operations – General Fund FY 2022-2023
29
30 EDUCATION
31 North Carolina Community College System
32 Requirements 1,707,720,962
33 Less: Receipts 350,116,886
34 Net Appropriation 1,357,604,076
*H103-CCSMLxr-9*
General Assembly Of North Carolina Session 2021
1
2 Department of Public Instruction
4 Less: Receipts 2,290,067,356
6
7 THE UNIVERSITY OF NORTH CAROLINA
8 Appalachian State University
9 Requirements 268,075,375
11 Net Appropriation 150,108,008
12
13 East Carolina Univ. – Academic Affairs
17
18 East Carolina Univ. – Health Affairs
22
23 Elizabeth City State University
27
28 Fayetteville State University
32
33 NC A&T University
37
38 NC School of Science and Mathematics
42
43 NC State University – Academic Affairs
47
48 NC State University – Ag. Research
Page 2 House Bill 103 H103-CCSMLxr-9 [v.1]

1
2 NC State University – Coop. Extension
6
7 North Carolina Central University
11
12 UNC at Asheville
16
17 UNC at Chapel Hill – Academic Affairs
21
22 UNC at Chapel Hill – Area Health Ed.
24 Less: Receipts 0
26
27 UNC at Chapel Hill – Health Affairs
31
32 UNC at Charlotte
36
37 UNC at Greensboro
41
42 UNC at Pembroke
46
47 UNC at Wilmington
51
H103-CCSMLxr-9 [v.1] House Bill 103 Page 3

1 UNC Board of Governors
3 Less: Receipts 259,217
5
6 UNC BOG – Aid to Private Institutions
10
11 UNC BOG – Institutional Programs
15
16 UNC BOG – Related Educational Programs
20
21 UNC School of the Arts
25
26 Western Carolina University
30
31 Winston-Salem State University
35
36 HEALTH AND HUMAN SERVICES
37 Aging and Adult Services
41
42 Central Management and Support
46
47 Child Development and Early Education
51

1 Health Benefits
3 Less: Receipts 16,845,577,483
5
6 Health Service Regulation
10
11 Mental Hlth/Dev. Disabl./Subs. Abuse Serv.
15
16 Public Health
20
21 Services for the Blind/Deaf/Hard of Hearing
25
26 Social Services
28 Less: Receipts 1,793,310,291
30
31 Vocational Rehabilitation Services
35
36 AGRICULTURE, NATURAL, AND ECONOMIC RESOURCES
37 Agriculture and Consumer Services
41
42 Commerce
46
47 Environmental Quality
51

1 Labor
5
6 Natural and Cultural Resources
10
11 Wildlife Resources Commission
15
16 JUSTICE AND PUBLIC SAFETY
17 Indigent Defense Services
21
22 Department of Public Safety
26
27 Administrative Office of the Courts
31
32 Department of Justice
36
37 GENERAL GOVERNMENT
38 Administration
42
43 Administrative Hearings
47
48 Auditor

1
2 Budget and Management
6
7 Budget and Management – Special Approp.
11
12 Controller
16
17 Elections
21
22 General Assembly
26
27 Governor
31
32 Housing Finance Agency
36
37 Human Resources
41
42 Industrial Commission
46
47 Insurance
51

1 Lieutenant Governor
5
6 Military and Veterans Affairs
10
11 Revenue
15
16 Secretary of State
20
21 Treasurer
25
26 Treasurer – Other Retirement Plans/Benefits
28 Less: Receipts 0
30
31 INFORMATION TECHNOLOGY
32 Department of Information Technology
36
37 RESERVES, DEBT, AND OTHER BUDGETS
38 Education Enrollment Reserve
39 Requirements 0
40 Less: Receipts 0
41 Net Appropriation 0
42
43 State Treasurer – General Debt Service
46 Net Appropriation 0
47
48 Total Requirements 55,924,401,654
49 Less: Total Receipts 28,022,196,680
50 Total Net Appropriation 27,902,204,974
51

1 SECTION 2.1.(b) For purposes of this act and the Committee Report described in
2 Section 43.2 of this act, the requirements set forth in this section represent the total amount of
3 funds, including agency receipts, appropriated to an agency, department, or institution.
4
5 GENERAL FUND AVAILABILITY
6 SECTION 2.2.(a) The General Fund availability for the 2022-2023 fiscal year set
7 out in Section 2.2(a) of S.L. 2021-180 is repealed. The General Fund availability derived from
8 State tax revenue, nontax revenue, and other adjustments used in developing the budget for the
9 2022-2023 fiscal year is as follows:
10 FY 2022-2023
11 Unappropriated Balance Remaining FY 2021-22 2,380,495,252
12 Revised FY 2020-21 Overcollections (17,853,808)
13 Anticipated Reversions 200,000,000
14 Anticipated FY 2021-22 Overcollections 4,241,300,000
15 Additional FY 2021-22 Medicaid Appropriations (52,800,000)
16 FY 2021-22 Public School Contingency Reserve (227,000,000)
17 Beginning Unreserved Fund Balance 6,524,141,444
18
19 Revised Consensus Revenue Forecast
20 Tax Revenue
21 Personal Income 15,472,500,000
22 Sales and Use 10,382,800,000
23 Corporate Income 1,155,500,000
24 Franchise 690,900,000
25 Insurance 1,033,500,000
26 Alcoholic Beverages 552,500,000
27 Tobacco Products 270,200,000
28 Other Tax Revenues 202,900,000
29 Subtotal, Tax Revenue 29,760,800,000
30
31 Non-Tax Revenue
32 Judicial Fees 222,800,000
33 Investment Income 60,900,000
34 Disproportionate Share 161,500,000
35 Master Settlement Agreement 144,600,000
36 Insurance 116,100,000
37 Other Non-Tax Revenue 242,900,000
38 Subtotal, Non-Tax Revenue 948,800,000
39
40 Total, Revised Net Revenue 30,709,600,000
41
42 Adjustments to Tax Revenue
43 Personal Income Tax Changes
44 NOAA and USPHS Retirement Pay Exclusion (1,600,000)
45 Sales and Use Tax Changes
46 Interstate Air and Ground Carriers Exemption (6,300,000)
47 Highway Fund Transfer (193,100,000)
48 Subtotal, Adjustments to Tax Revenue (201,000,000)
49
50 Statutorily Required Reservations of Revenue
51 State Capital and Infrastructure Fund (1,365,500,000)

1 Subtotal, Statutorily Required Reservations of Revenue (1,365,500,000)
2
3 Reserves
4 State Capital and Infrastructure Fund (1,816,706,484)
5 Savings Reserve (1,634,006,722)
6 Medicaid Transformation Reserve (246,000,000)
7 Medicaid Contingency Fund (151,140,063)
8 Information Technology Project Reserve (184,000,000)
9 State Emergency and Disaster Response Fund (945,198,500)
10 Economic Development Project Reserve (876,000,000)
11 World University Games Reserve (25,000,000)
12 Housing Reserve (205,000,000)
13 Local Project Reserve (80,114,572)
14 Federal Infrastructure Match Reserve (106,000,000)
15 Retiree Supplement Reserve (35,954,763)
16 Needs-Based Public School Capital Reserve (100,000,000)
17 Clean Water and Drinking Water Reserve (325,980,444)
18 Stabilization and Inflation Reserve (1,000,000,000)
19 Unfunded Liability Solvency Reserve (10,000,000)
20 Subtotal, Reserves (7,741,101,548)
21
22 Other Adjustments to Availability
23 Adjustment to Transfer from State Treasurer 230,739
24 Adjustment from Insurance Regulatory Fund 1,059,767
25 Subtotal, Other Adjustments 1,290,506
26
27 Revised Total General Fund Availability 27,927,430,402
28
29 Less General Fund Net Appropriations 27,902,204,974
30
31 Unappropriated Balance Remaining 25,225,428
32
33 SECTION 2.2.(b) Section 2.2(b) of S.L. 2021-180 reads as rewritten:
34 "SECTION 2.2.(b) In addition to the amount required under G.S. 143C-4-3.1, as amended
35 by Section 5.7 of this act, the State Controller shall transfer to the State Capital and Infrastructure
36 Fund established under G.S. 143C-4-3.1 the sum of two billion three hundred forty-nine million
37 three hundred thirty-four thousand nine hundred ninety-nine dollars ($2,349,334,999) in
38 nonrecurring funds in the 2021-2022 fiscal year and the sum of one billion thirty-nine eight
39 hundred sixteen million five seven hundred six thousand four hundred eighty-four dollars
40 ($1,039,500,000) ($1,816,706,484) in nonrecurring funds in the 2022-2023 fiscal year. Funds
41 The following sums transferred under this subsection to the Fund are appropriated for the fiscal
42 year in which they were transferred as follows and shall be used in accordance with Part 40 of
43 this act.act and any applicable provision of the Current Operations Appropriations Act of 2022:
44 (1) The entire sum transferred to the Fund in the 2021-2022 fiscal year under this
45 subsection and G.S. 143C-4-3.1, as amended by Section 5.7 of this act.
46 (2) The sum of one billion five hundred fifty-six million three hundred fifteen
47 thousand one hundred sixty-eight dollars ($1,556,315,168) for the 2022-2023
48 fiscal year, and the entire sum required to be transferred to the Fund in the
49 2022-2023 fiscal year under G.S. 143C-4-3.1, as amended by Section 5.7 of
50 this act."
51 SECTION 2.2.(c) Section 2.2(c) of S.L. 2021-180 reads as rewritten:

1 "SECTION 2.2.(c) In addition to the amount required under G.S. 143C-4-2, as amended by
2 Section 5.6 of this act, the State Controller shall transfer to the Savings Reserve the sum of one
3 billion one hundred thirty-four million six thousand seven hundred twenty-three dollars
4 ($1,134,006,723) in nonrecurring funds in the 2021-2022 fiscal year and the sum of one billion
5 one six hundred thirty-four million six thousand seven hundred twenty-two dollars
6 ($1,134,006,722) ($1,634,006,722) in nonrecurring funds in the 2022-2023 fiscal year. This
7 transfer is not an "appropriation made by law," as that phrase is used in Section 7(1) of Article V
8 of the North Carolina Constitution."
9 SECTION 2.2.(d) Section 2.2(f) of S.L. 2021-180 reads as rewritten:
10 "SECTION 2.2.(f) The State Controller shall transfer the sum of four hundred thirty million
11 eight hundred twenty thousand dollars ($430,820,000) for the 2021-2022 fiscal year and the sum
12 of forty-six seventy-one million dollars ($46,000,000) ($71,000,000) for the 2022-2023 fiscal
13 year from funds available in the Medicaid Transformation Reserve in the General Fund to the
14 Medicaid Transformation Fund established under Section 12H.29 of S.L. 2015-241."
15 SECTION 2.2.(e) The State Controller shall reserve to the Medicaid Contingency
16 Reserve described in G.S. 143C-4-11 from funds available in the General Fund the sum of one
17 hundred fifty-one million one hundred forty thousand sixty-three dollars ($151,140,063) in
18 nonrecurring funds for the 2022-2023 fiscal year.
19 SECTION 2.2.(f) Section 2.2(h) of S.L. 2021-180 reads as rewritten:
20 "SECTION 2.2.(h) There is established in the General Fund an Information Technology
21 Reserve that shall make funds available for information technology project expenditures only
22 upon an act of appropriation by the General Assembly. The State Controller shall reserve to the
23 Information Technology Reserve from funds available in the General Fund the sum of one
24 hundred nine million six hundred sixty-one thousand one hundred fifty-five dollars
25 ($109,661,155) in nonrecurring funds for the 2021-2022 fiscal year and the sum of one hundred
26 sixty-five eighty-four million dollars ($165,000,000) ($184,000,000) in nonrecurring funds for
27 the 2022-2023 fiscal year. The State Controller shall transfer funds available in the Information
28 Technology Reserve to State agencies and departments for information technology projects in
29 accordance with the following schedule, and the funds transferred are appropriated for the fiscal
30 year in which they are transferred:
31
32 State Agency or Department 2021-2022 2022-2023
33
34 (1) Office of the State Controller
35 (Budget Code: 19084) $25,000,000 $25,000,000
36 (2) Department of Public Instruction
37 (Budget Code: 23515) 48,748,522 37,850,910
38 (3) Community College System
39 (Budget Code: 26802) 28,500,000 0
40 (4) Administrative Office of the Courts
41 (Budget Code: 22006) 7,412,633 8,405,916
42 (5) Department of Information Technology
43 (Budget Code: 14660) 0 3,800,000"
44 SECTION 2.2.(g) Section 2.2(i) of S.L. 2021-180 reads as rewritten:
45 "SECTION 2.2.(i) The State Controller shall reserve the sum of four hundred twenty-five
46 million dollars ($425,000,000) in nonrecurring funds for the 2021-2022 fiscal year, and the sum
47 of three nine hundred seventy-five forty-five million one hundred ninety-eight thousand five
48 hundred dollars ($375,000,000) ($945,198,500) for the 2022-2023 fiscal year, from funds
49 available in the General Fund to the State Emergency Response and Disaster Relief Reserve
50 established under G.S. 166A-19.42. Funds reserved in the State Emergency Response and

1 Disaster Relief Reserve pursuant to this subsection do not constitute an "appropriation made by
2 law," as that phrase is used in Section 7(1) of Article V of the North Carolina Constitution."
3 SECTION 2.2.(h) The State Controller shall transfer the sum of two hundred sixteen
4 million fifteen thousand three hundred thirty-nine dollars ($216,015,339) in nonrecurring funds
5 for the 2022-2023 fiscal year from funds available in the State Emergency Response and Disaster
6 Relief Fund, to be used in accordance with Section 5.4 of this act, and the funds transferred are
7 appropriated for the 2022-2023 fiscal year.
8 SECTION 2.2.(i) The State Controller shall reserve to the Economic Development
9 Project Reserve established in Section 2.2 of S.L. 2021-180 from funds available in the General
10 Fund the sum of eight hundred seventy-six million dollars ($876,000,000) in nonrecurring funds
11 for the 2022-2023 fiscal year. Funds reserved in the Economic Development Project Reserve
12 pursuant to this subsection may be used only for projects as specifically provided in this act
13 notwithstanding whether such projects meet or exceed high-yield project metrics, as defined in
14 G.S. 143B-437.51. The State Controller shall transfer the sum of twelve million dollars
15 ($12,000,000) to the Department of Commerce to be used in accordance with Sections 11.6 and
16 11.7 of this act. Provided the condition set forth in Section 11.8 of this act is satisfied, the State
17 Controller shall transfer from the Reserve the amount necessary to effectuate the purpose set
18 forth in Section 11.8 of this act. Provided the condition set forth in Section 11.9 of this act is
19 satisfied, the State Controller shall transfer from the Reserve the amount necessary to effectuate
20 the purpose set forth in Section 11.9 of this act. Provided the condition set forth in Section 11.10
21 of this act is satisfied, the State Controller shall transfer from the Reserve the amount necessary
22 to effectuate the purpose set forth in Section 11.10 of this act.
23 SECTION 2.2.(j) There is established in the General Fund a World University
24 Games Reserve to make funds available to support the State of North Carolina as a host of the
25 2027 World University Games upon an act of appropriation by the General Assembly. The State
26 Controller shall reserve to the World University Games Reserve from funds available in the
27 General Fund the sum of twenty-five million dollars ($25,000,000) in nonrecurring funds for the
28 2022-2023 fiscal year. Funds in the reserve that have not been appropriated by June 30, 2026,
29 shall revert to the General Fund and the World University Games Reserve shall be eliminated.
30 SECTION 2.2.(k) There is established in the General Fund a Housing Reserve that
31 shall make funds available upon appropriation for the Workforce Housing Loan Program in
32 accordance with Section 29.1 of this act and the Dare County Affordable Housing Project in
33 accordance with Section 24.1 of this act. The State Controller shall reserve to the Housing
34 Reserve from funds available in the General Fund the sum of two hundred five million dollars
35 ($205,000,000) in nonrecurring funds for the 2022-2023 fiscal year. The State Controller shall
36 transfer the sum of one hundred seventy million dollars ($170,000,000) to the Housing Finance
37 Agency to use for the Workforce Housing Loan Program in accordance with Section 29.1 of this
38 act. Additionally, the State Controller shall transfer the sum of thirty-five million dollars
39 ($35,000,000) to the Office of State Budget and Management to use for the Dare County
40 Affordable Housing Project in accordance with Section 24.1 of this act.
41 SECTION 2.2.(l) There is established in the General Fund a Local Project Reserve
42 that shall make funds available for local project expenditures. The State Controller shall reserve
43 to the Local Project Reserve from funds available in the General Fund the sum of eighty million
44 one hundred fourteen thousand five hundred seventy-two dollars ($80,114,572) in nonrecurring
45 funds for the 2022-2023 fiscal year. The State Controller shall transfer funds available in the
46 Local Project Reserve in accordance with the following schedule, and the funds transferred are
47 to be used for the projects listed in the Committee Report described in Section 43.2 of this act:
48
49 State Agency/Department 2022-2023
50 (1) Department of Public Instruction
51 (Budget Code: 13510) $6,873,000

1 (2) UNC Board of Governors
2 (Budget Code: 16015) $25,000
3 (3) Appalachian State University
4 (Budget Code: 16080) $225,000
5 (4) University of North Carolina at Pembroke
6 (Budget Code: 16082) $1,000,000
7 (5) North Carolina Community Colleges System
8 (Budget Code: 16800) $3,250,000
9 (6) Department of Commerce
10 (Budget Code: 14601) $2,425,000
11 (7) Department of Agriculture and Consumer Services
12 (Budget Code: 13700) $200,000
13 (8) Department of Natural and Cultural Resources
14 (Budget Code: 14800) $2,300,000
15 (9) Wildlife Resources Commission
16 (Budget Code: 14350) $50,000
17 (10) Department of Public Safety
18 (Budget Code: 14550) $2,325,000
19 (11) Administrative Office of the Courts
20 (Budget Code: 12000) $125,000
21 (12) DHHS – DAAS
22 (Budget Code: 14411) $1,652,272
23 (13) DHHS – CMS
24 (Budget Code: 14410) $2,850,000
25 (14) DHHS – DCDEE
26 (Budget Code: 14420) $50,000
27 (15) DHHS – DMH/DD/SAS
28 (Budget Code: 14460) $2,385,000
29 (16) DHHS – DPH
30 (Budget Code: 14430) $2,585,000
31 (17) DHHS – DSS
32 (Budget Code: 14440) $1,159,000
33 (18) Department of Administration
34 (Budget Code: 14100) $500,000
35 (19) Office of State Budget and Management
36 (Budget Code: 13085) $48,300,300
37 (20) Department of Insurance
38 (Budget Code: 13900) $1,835,000
39
40 SECTION 2.2.(m) There is established in the General Fund the Federal
41 Infrastructure Match Reserve that shall make funds available to State agencies and departments
42 to use for State match requirements when procuring federal aid made available under the federal
43 Infrastructure Investment and Jobs Act (P.L. 117-58). The State Controller shall reserve to the
44 Federal Infrastructure Match Reserve from funds available in the General Fund the sum of one
45 hundred six million dollars ($106,000,000) in nonrecurring funds for the 2022-2023 fiscal year.
46 The State Controller shall transfer funds available in the Federal Infrastructure Match Reserve to
47 the Department of Environmental Quality (DEQ) and the Department of Information Technology
48 (DIT) as needed to draw down federal funds in accordance with the following schedule, and the
49 funds transferred are appropriated for the 2022-2023 fiscal year:
50
51 Purpose 2022-2023

1 (1) DEQ – Drinking Water State Revolving Fund
2 (Budget Code: 64320) $5,513,900
3 (2) DEQ – Clean Water State Revolving Fund
4 (Budget Code: 64311) $3,238,600
5 (3) DEQ – Preventing Outages and Enhancing the
6 Resilience of the Electric Grid Grants
7 (Budget Code: 24300) $1,388,921
8 (4) DIT – State, Local, Tribal, and Territorial Grant Program
9 (Budget Code: 24667) $529,937
10
11 SECTION 2.2.(n) There is established in the General Fund the Retiree Supplement
12 Reserve that shall make funds available to provide a one percent (1%) retiree supplement. The
13 State Controller shall reserve to the Retiree Supplement Reserve from funds available in the
14 General Fund the sum of thirty-five million nine hundred fifty-four thousand seven hundred
15 sixty-three dollars ($35,954,763) in nonrecurring funds for the 2022-2023 fiscal year. The State
16 Controller shall transfer to State departments and agencies the funds needed to implement the
17 one percent (1%) retiree supplement in accordance with Section 39.20 of this act.
18 SECTION 2.2.(o) There is established in the General Fund the Public School
19 Needs-Based Capital Reserve that shall make funds available to be used in accordance with this
20 act. The State Controller shall reserve to the Public School Needs-Based Capital Reserve from
21 funds available in the General Fund the sum of one hundred million dollars ($100,000,000) in
22 nonrecurring funds for the 2022-2023 fiscal year. The State Controller shall transfer to the
23 Department of Public Instruction the funds needed to implement the Public School Needs-Based
24 Capital Fund in accordance with Section 4.2 of this act, and the funds transferred are appropriated
25 for the 2022-2023 fiscal year.
26 SECTION 2.2.(p) There is established in the General Fund the Clean Water and
27 Drinking Water Reserve that shall make funds available to the Department of Environmental
28 Quality to use for clean water and drinking water projects in accordance with Section 12.9 of this
29 act. The State Controller shall reserve to the Clean Water and Drinking Water Reserve from
30 funds available in the General Fund the sum of three hundred twenty-five million nine hundred
31 eighty thousand four hundred forty-four dollars ($325,980,444) in nonrecurring funds for the
32 2022-2023 fiscal year. The State Controller shall transfer to the Department of Environmental
33 Quality the funds needed for clean water and drinking water projects in accordance with Section
34 12.9 of this act, and the funds transferred are appropriated for the 2022-2023 fiscal year.
35 SECTION 2.2.(q) There is established in the General Fund the Stabilization and
36 Inflation Reserve that shall make, only upon an act of appropriation by the General Assembly,
37 funds available to be used for costs associated with inflation and other measures necessary to
38 stabilize the State economy. The State Controller shall reserve to the Stabilization and Inflation
39 Reserve from funds available in the General Fund the sum of one billion dollars ($1,000,000,000)
40 in nonrecurring funds for the 2022-2023 fiscal year.
41 SECTION 2.2.(r) There is established in the State Capital and Infrastructure Fund a
42 Downtown Government Complex Reserve that shall make funds available for capital
43 improvement, repair and renovation, and related expenditures that are identified by the
44 Department of Administration, in conjunction with the Legislative Services Office, as necessary
45 to facilitate a capital improvement project or repair and renovation, or for costs associated with
46 the relocation of State agency staff and operations, in connection with the Government Facilities
47 Master Plan initiated pursuant to Section 36.2(a) of S.L. 2018-5 and Section 40.1(h) of S.L.
48 2021-180.
49 SECTION 2.2.(s) Except as otherwise specifically provided, nothing in this section
50 shall be construed as appropriating funds reserved pursuant to this section. Funds reserved

1 pursuant to this section do not constitute an "appropriation made by law," as that phrase is used
2 in Section 7(1) of Article V of the North Carolina Constitution.
3 SECTION 2.2.(t) The State Controller shall ensure that the transfers required under
4 this section are completed as soon as practicable but no later than the end of the 2022-2023 fiscal
5 year. In making the transfers required under this section, the State Controller shall prioritize
6 transfers to Reserves that support expenditures occurring in the 2022-2023 fiscal year.
7 SECTION 2.2.(u) Of the funds appropriated from the Unfunded Liability Solvency
8 Reserve in S.L. 2021-180, the State Controller shall transfer funds from the Reserve in the
9 amounts necessary, not to exceed the sum of forty million dollars ($40,000,000), to State agencies
10 and departments in the 2022-2023 fiscal year to use to pay the additional contributions set out in
11 S.L. 2021-180 to the Teachers' and State Employees' Retirement System and Retiree Health
12 Benefit Fund.
13 SECTION 2.2.(v) Effective June 30, 2022, Section 2.1(a) of S.L. 2021-180, as
14 amended by subsection (a) of this section, reads as rewritten:
15 "SECTION 2.1.(a) Appropriations from the General Fund for the budgets of the State
16 departments, institutions, and agencies, and for other purposes as enumerated, are made for each
17 year of the 2021-2023 fiscal biennium, according to the following schedule:
18
19 Current Operations – General Fund FY 2021-2022
20 …
21 HEALTH AND HUMAN SERVICES
22 …
23 Health Benefits
24 Requirements 20,103,850,25820,305,762,258
25 Less: Receipts 16,126,513,96316,275,625,963
26 Net Appropriation 3,977,336,2954,030,136,295
27 …
28 AGRICULTURE, NATURAL, AND ECONOMIC RESOURCES
29 …
30 Commerce
31 Requirements 599,260,602537,760,602
32 Less: Receipts 382,599,635321,099,635
34 …
35 GENERAL GOVERNMENT
36 …
37 Budget and Management
38 Requirements 239,898,420204,898,420
39 Less: Receipts 225,092,508190,092,508
41 …
42 Housing Finance Agency
43 Requirements 190,660,00020,660,000
44 Less: Receipts 180,000,00010,000,000
46 …
47 Total Requirements 59,834,157,71559,769,569,715
48 Less: Total Receipts 33,912,731,43333,795,343,433
49 Total Net Appropriation 25,921,426,28225,974,226,282"
50
51 PART III. HIGHWAY FUND AND HIGHWAY TRUST FUND

1
2 CURRENT OPERATIONS AND EXPANSION/HIGHWAY FUND
3 SECTION 3.1. Appropriations from the State Highway Fund for the maintenance
4 and operation of the Department of Transportation and for other purposes as enumerated are
5 made for the fiscal year ending June 30, 2023, according to the following schedule. Amounts set
6 out in parentheses are reductions from Highway Fund Appropriations for the 2022-2023 fiscal
7 year.
8
9 Highway Fund FY 2022-2023
10
11 Administration $7,062,072
12
13 Division of Highways
14 Administration 0
15 Construction 135,000,000
16 Maintenance 34,100,000
17 Governor's Highway Safety Program 0
18 OSHA 0
19
20 Aid to Municipalities 0
21
22 Intermodal Divisions
23 Ferry 661,671
24 Public Transportation, Bicycle and Pedestrian 2,000,000
25 Aviation 28,400,000
26 Rail 7,527,000
27
28 Division of Motor Vehicles 0
29
30 Other State Agencies, Reserves, Transfers 120,049,257
31
32 Capital Improvements 0
33
34 Total $2,938,200,000
35
36 HIGHWAY FUND AVAILABILITY
37 SECTION 3.2. The Highway Fund availability for the 2022-2023 fiscal year in
38 Section 3.2 of S.L. 2021-180 is repealed. The Highway Fund availability used in adjusting the
39 2022-2023 fiscal year budget is shown below:
40
41 Highway Fund Availability FY 2022-2023
42
43 Projected Over Collections $107,700,000
44 Partial Accounting of HTF Cash Advance Repayments (107,700,000)
45 Beginning Balance 0
46 Motor Fuels Tax 1,776,100,000
47 Licenses and Fees 872,200,000
48 Sales Tax Transfer – 2% 193,100,000
49 Highway Short-Term Lease 95,300,000
50 Investment income 1,500,000
51

1 Total Highway Fund Availability $2,938,200,000
2
3 HIGHWAY TRUST FUND APPROPRIATIONS
4 SECTION 3.3. Appropriations from the State Highway Trust Fund for the
5 maintenance and operation of the Department of Transportation and for other purposes as
6 enumerated are made for the fiscal year ending June 30, 2023, according to the following
7 schedule. Amounts set out in parentheses are reductions from Highway Trust Fund
8 Appropriations for the 2022-2023 fiscal year.
9
10 Current Operations – Highway Trust Fund FY 2022-2023
11
12 Program Administration $0
13 Bonds 0
14 Turnpike Authority 0
15 State Ports Authority 0
16 FHWA State Match 0
17 Strategic Prioritization Funding Plan for
18 Transportation Investments 106,960,000
19 Transfer to Visitor Center 240,000
20 Total $1,835,500,000
21
22 HIGHWAY TRUST FUND AVAILABILITY
23 SECTION 3.4. The Highway Trust Fund availability for the 2022-2023 fiscal year
24 set out in Section 3.4 of S.L. 2021-180 is repealed. The Highway Trust Fund availability used in
25 adjusting the 2022-2023 fiscal year budget is shown below:
26
27 Highway Trust Fund Availability FY 2022-2023
28
29 Projected Over Collections $74,800,000
30 Partial Accounting of Cash Advance Repayments 107,700,000
31 STI Projects (182,500,000)
32 Beginning Balance 0
33 Highway Use Tax 1,086,000,000
34 Motor Fuels Tax 590,100,000
35 Fees 158,000,000
36 Investment Income 1,400,000
37
38 Total Highway Trust Fund $1,835,500,000
39
40 PART IV. OTHER AVAILABILITY AND APPROPRIATIONS
41
42 APPROPRIATION OF RECEIPTS INCREASED DUE TO SALARY AND BENEFITS
43 INCREASES
44 SECTION 4.1. Any receipts that are required to be used to pay the legislatively
45 mandated salary increases and employee benefits increases provided in this act are appropriated
46 up to the actual amount received for the 2022-2023 fiscal year.
47
48 LOTTERY/NEEDS-BASED CHANGES
49 SECTION 4.2.(a) Section 4.3 of S.L. 2021-180 reads as rewritten:
50 "SECTION 4.3.(a) The allocations made from the Education Lottery Fund for the
51 2021-2023 fiscal biennium are as follows:

1 FY 2021-2022 FY 2022-2023
2
3 Noninstructional Support Personnel $385,914,455 $385,914,455
4 Prekindergarten Program 78,252,110 78,252,110
5 Public School Building Capital Fund 100,000,000 100,000,000
6 Needs-Based Public School Capital Fund 145,252,612
7 153,252,612208,252,612
8 Public School Repair & Renovation 30,000,000 50,000,000
9 Scholarships for Needy Students 30,450,000 –
10 UNC Need-Based Financial Aid 10,744,733 –
11 Scholarship Reserve Fund for Public Colleges
12 and Universities – 41,194,733
13 LEA Transportation 21,386,090 21,386,090
14 TOTAL ALLOCATION $802,000,000
15 $830,000,000$885,000,000
16 "SECTION 4.3.(a1) The anticipated funding available for the Needs-Based Public School
17 Capital Fund for the 2022-2023 fiscal year is as follows:
18 FY 2022-2023
19
20 Education Lottery Fund Allocation $208,252,612
21 Surplus FY21-22 Education Lottery Receipts 123,000,000
22 Funding from Needs-Based Capital Reserve 100,000,000
23 TOTAL ESTIMATED AVAILABILITY $431,252,612
24 …."
25 SECTION 4.2.(b) Article 38B of Chapter 115C of the General Statutes, as enacted
26 by Section 4.4(a) of S.L. 2021-180, reads as rewritten:
27 "Article 38B.
28 "Needs-Based Public School Capital Fund.
29 …
30 "§ 115C-546.11. Matching requirement; use of funds; maximum awards.awards; project
31 review.
32 …
33 (d) The Department of Public Instruction shall review projected enrollment to evaluate
34 the reasonableness of a project's size and scope. A county may include in a grant application a
35 minimum grant amount that would enable the project to proceed. A grant application that
36 proposes to consolidate two or more schools by (i) making additions or renovations at one or
37 more school facilities and (ii) closing one or more existing school facilities may be submitted
38 and considered by the Department of Public Instruction as a single project. Each application for
39 a grant under this Article shall be evaluated independent of other grant applications submitted. A
40 county may not apply for projects that exceed an aggregate amount greater than the maximum
41 grant award amounts listed in subsection (c) of this section in any single year. The Department
42 of Public Instruction shall not award a grant to an applicant at less than the requested amount or
43 less than the maximum grant amounts listed in subsection (c) of this section for the purpose of
44 reserving the amount of grant funds available for other grant applications.
45 …
46 "§ 115C-546.14. Reporting.
47 (a) On or before April 1 of each year, a grant recipient shall submit to the Department of
48 Public Instruction an annual report for the preceding year that describes the progress of the
49 project for which the grant was received. The grant recipient shall submit a final report to the
50 Department of Public Instruction within three months of the completion of the project.

1 (b) On or before May 1 of each year, the Department of Public Instruction shall submit a
2 report to the chairs of the Senate Appropriations Committee on Education/Higher Education, the
3 chairs of the House Appropriations Committee on Education, and the Fiscal Research Division.
4 The report shall contain at least all of the following information for the fiscal year:
5 (1) Number and description Number, description, and geographic distribution of
6 projects awarded.
7 (2) Total cost of each project and amount supported by the Needs-Based Public
8 School Capital Fund.
9 (3) Projections for local school administrative unit capital needs for the next 30
10 years based upon present conditions and estimated demographic changes.
11 (4) Any legislative recommendations for improving the Needs-Based Public
12 School Capital Fund program."
13 SECTION 4.2.(c) The Department of Public Instruction shall reconsider
14 Needs-Based Public School Capital Fund grant applications that were previously submitted for
15 the 2021-2022 grant cycle containing multiple projects as a consolidated project grant
16 application.
17 SECTION 4.2.(d) Notwithstanding Article 38B of Chapter 115C of the General
18 Statutes, the Department of Public Instruction shall award additional grant funding for the
19 2022-2023 fiscal year to certain prior recipients of grants from the Needs-Based Public School
20 Capital Fund. Additional grant awards are provided to the following counties for the following
21 amounts:
22 (1) Six million dollars ($6,000,000) to Anson County.
23 (2) Eight million dollars ($8,000,000) to Ashe County.
24 (3) Eight million dollars ($8,000,000) to Bladen County.
25 (4) Ten million twelve thousand six hundred dollars ($10,012,600) to Camden
26 County.
27 (5) Two million nine hundred eighty-two thousand two hundred forty-nine dollars
28 ($2,982,249) to Carteret County.
29 (6) Eight million dollars ($8,000,000) to Catawba County.
30 (7) Ten million dollars ($10,000,000) to Chowan County.
31 (8) Eight million dollars ($8,000,000) to Clay County.
32 (9) Five million seven hundred thousand dollars ($5,700,000) to Cleveland
33 County.
34 (10) Seven million eight hundred sixteen thousand six hundred dollars
35 ($7,816,600) to Halifax County.
36 (11) Ten million dollars ($10,000,000) to Hoke County.
37 (12) Eight million dollars ($8,000,000) to Mitchell County.
38 (13) Nine million nine hundred ninety-eight thousand one hundred eighty-two
39 dollars ($9,998,182) to Northampton County.
40 (14) Ten million dollars ($10,000,000) to Robeson County.
41 (15) Two hundred eighty-seven thousand nine hundred thirteen dollars ($287,913)
42 to Tyrrell County.
43 (16) Six million dollars ($6,000,000) to Warren County.
44 (17) Ten million dollars ($10,000,000) to Washington County.
45 (18) Six million dollars ($6,000,000) to Wayne County.
46 SECTION 4.2.(e) The additional grant awards provided pursuant to subsection (d)
47 of this section shall be subject to the same local matching requirement applicable when the
48 previous grant was awarded. The Department of Public Instruction may amend any existing
49 agreements entered into with grant recipients from the initial grant award to accommodate the
50 increased grant funding provided in this section.
51

1 CIVIL PENALTY AND FORFEITURE FUND
2 SECTION 4.3. Section 4.6 of S.L. 2021-180 reads as rewritten:
3 "SECTION 4.6. Allocations are made from the Civil Penalty and Forfeiture Fund for the
4 fiscal biennium ending June 30, 2023, as follows:
5 FY 2021-2022 FY 2022-2023
6 School Technology Fund $18,000,000 $18,000,000
7 Drivers Education 27,393,768
8 27,393,76830,193,768
9 State Public School Fund 183,041,640
10 147,041,640186,841,640
11 Total Appropriation $228,435,408
12 $192,435,408$235,035,408"
13
14 TRANSFER OF FUNDS FROM STATE FISCAL RECOVERY RESERVE TO STATE
15 FISCAL RECOVERY FUND
16 SECTION 4.4.(a) The State Controller shall transfer the sum of fifty-three million
17 one hundred eighty-five thousand four hundred seventy-one dollars ($53,185,471) for the
18 2022-2023 fiscal year from the State Fiscal Recovery Reserve to the State Fiscal Recovery Fund.
19 SECTION 4.4.(b) Funds from the State Fiscal Recovery Reserve or the State Fiscal
20 Recovery Fund that are transferred, reallocated, or otherwise spent in this act are subject to the
21 requirements set forth in Section 4.9 of S.L. 2021-180.
22
23 2021-2022 FISCAL YEAR BUDGET REVISION
24 SECTION 4.5.(a) Establishment. – There is established in the General Fund the
25 Public School Contingency Reserve (Reserve) that shall make funds available to the Department
26 of Public Instruction (Department) to use to provide sufficient State net General Fund
27 appropriations and necessary budget authority to close out the 2021-2022 fiscal year. The State
28 Controller shall reserve to the Reserve from funds available in the General Fund the sum of two
29 hundred twenty-seven million dollars ($227,000,000) in nonrecurring funds for the 2021-2022
30 fiscal year. Subject to the requirements set forth in subsection (b) of this section and in
31 consultation with the Office of State Budget and Management, the State Controller shall transfer
32 funds to the Department as needed to cover the costs described in this subsection, and the funds
33 are appropriated for this purpose.
34 SECTION 4.5.(b) Requirement. – The Department shall not be eligible to receive
35 funding under subsection (a) of this section until both of the following requirements are met:
36 (1) Except as otherwise provided in this subdivision, the Department shall have
37 fully expended its net General Fund appropriation for the 2021-2022 fiscal
38 year. The requirement set forth in this subdivision does not include funds
39 subject to Section 5.1 of this act or allowed by law to be carried forward and
40 used for at-risk students or programs authorized by the Excellent Public
41 Schools Act, S.L. 2012-142, or the Excellent Public Schools Act of 2021, S.L.
42 2021-8.
43 (2) The Department shall have properly budgeted and expended all receipts
44 collected during the 2021-2022 fiscal year.
45 SECTION 4.5.(c) Accounting of Federal Funds. – The Department shall also
46 establish a separate fund to hold any federal funds earned in the prior fiscal year but receipted in
47 the next fiscal year. The Department shall begin crediting federal fund receipts to this fund
48 beginning in the 2022-2023 fiscal year. Funds in this fund shall not be expended but shall revert
49 to the General Fund at the end of each fiscal year.
50 SECTION 4.5.(d) Report. – On or before September 1, 2022, the Department shall
51 submit a report to the Joint Legislative Education Oversight Committee and the Fiscal Research

1 Division detailing the steps taken to meet the requirements set forth in subsections (b) and (c) of
2 this section and the amount of funds, if any, received under subsection (a) of this section and the
3 purpose for which the funds were used.
4 SECTION 4.5.(e) Reversion. – Unexpended funds in the Reserve shall revert at the
5 end of the 2021-2022 fiscal year closeout process. The Reserve established in subsection (a) of
6 this section shall be eliminated upon the earlier of the date the funds in the Reserve are fully
7 expended or the date the funds revert under this subsection.
8 SECTION 4.5.(f) Effective Date. – This section becomes effective June 30, 2022.
9
10 PART V. GENERAL PROVISIONS
11
12 UNEXPENDED NONRECURRING FUNDS APPROPRIATED IN 2021-2022 FISCAL
13 YEAR DO NOT REVERT
14 SECTION 5.1.(a) Notwithstanding any provision of law to the contrary, any
15 nonrecurring funds appropriated for the 2021-2022 fiscal year that remain unexpended as of the
16 effective date of this section and are subject to reversion at the end of the 2021-2022 fiscal year
17 shall not revert at the end of the 2021-2022 fiscal year and shall remain available for expenditure
18 for the purpose for which the funds were appropriated until the earlier of the date the funds are
19 expended or the date the funds revert pursuant to subsection (b) of this section.
20 SECTION 5.1.(b) Any funds described in subsection (a) of this section that remain
21 unexpended as of June 30, 2023, shall revert to the appropriate fund at the end of the 2022-2023
22 fiscal year.
23 SECTION 5.1.(c) This section becomes effective June 30, 2022.
24
25 ESTABLISHING OR INCREASING FEES
26 SECTION 5.2.(a) Notwithstanding G.S. 12-3.1, an agency is not required to consult
27 with the Joint Legislative Commission on Governmental Operations prior to establishing or
28 increasing a fee to the level authorized or anticipated in this act.
29 SECTION 5.2.(b) Notwithstanding G.S. 150B-21.1A(a), an agency may adopt an
30 emergency rule in accordance with G.S. 150B-21.1A to establish or increase a fee as authorized
31 by this act if the adoption of a rule would otherwise be required under Article 2A of Chapter
32 150B of the General Statutes.
33
34 DIRECTED GRANTS TO NON-STATE ENTITIES
35 SECTION 5.3.(a) Definitions. – For purposes of this act and the Committee Report
36 described in Section 43.2 of this act, the following definitions apply:
37 (1) Directed grant. – Nonrecurring funds allocated by a State agency to a
38 non-State entity as directed by an act of the General Assembly.
39 (2) Non-State entity. – As defined in G.S. 143C-1-1.
40 SECTION 5.3.(b) Requirements. – Nonrecurring funds appropriated in this act as
41 directed grants are subject to all of the following requirements:
42 (1) Directed grants are subject to the provisions of subsections (b) through (k) of
43 G.S. 143C-6-23.
44 (2) Directed grants of one hundred thousand dollars ($100,000) or less may be
45 made in a single annual payment in the discretion of the Director of the
46 Budget. Directed grants of more than one hundred thousand dollars
47 ($100,000) shall be made in quarterly or monthly payments in the discretion
48 of the Director of the Budget. A State agency administering a directed grant
49 shall begin disbursement of funds to a non-State entity that meets all
50 applicable requirements as soon as practicable, but no later than 100 days after
51 the date this act becomes law.

1 (3) Beginning on the first day of a quarter following the deadline provided in
2 subdivision (2) of this subsection and quarterly thereafter, State agencies
3 administering directed grants shall report to the Fiscal Research Division on
4 the status of funds disbursed for each directed grant until all funds are fully
5 disbursed. At a minimum, the report required under this subdivision shall
6 include updates on (i) the date of the initial contact, (ii) the date the contract
7 was sent to the entity receiving the funds, (iii) the date the disbursing agency
8 received the fully executed contract back from the entity, (iv) the contract
9 execution date, and (v) the payment date.
10 (4) Notwithstanding any provision of G.S. 143C-1-2(b) to the contrary,
11 nonrecurring funds appropriated in this act as directed grants shall not revert
12 until June 30, 2024.
13 (5) Directed grants to nonprofit organizations are for nonsectarian, nonreligious
14 purposes only.
15 SECTION 5.3.(c) This section expires on June 30, 2024.
16
17 2022 DISASTER RELIEF AND RECOVERY/MITIGATION/RESILIENCY
18 SECTION 5.4.(a) Of the funds appropriated for the 2022-2023 fiscal year in Section
19 2.2 of this act to the State Emergency Response and Disaster Relief Fund (Fund), the sum of two
20 hundred sixteen million fifteen thousand three hundred thirty-nine dollars ($216,015,339) is
21 allocated for the following purposes in the following amounts:
22 (1) $125,000,000 shall be reserved within the Fund for the Department of Health
23 and Human Services to offset cash expenditures made by the Department for
24 COVID-19 eligible expenses pending reimbursements by the Federal
25 Emergency Management Agency (FEMA) at one hundred percent (100%) of
26 associated costs. As reimbursements from FEMA are received, the
27 Department shall return funds to the State Emergency Response and Disaster
28 Reserve (Reserve), and those funds shall remain in the Reserve until
29 appropriated by the General Assembly.
30 (2) $15,000,000 to the State Match Fund, established in Section 5.9(d) of S.L.
31 2021-180 for FEMA match requirements for COVID-19 expenses.
32 (3) $57,515,339 to the Department of Public Safety, Division of Emergency
33 Management, in the following amounts for the following purposes:
34 a. $5,000,000 for the Private Road and Bridge Repair and Replacement
35 Program established in Section 5.9A of S.L. 2021-180 to address
36 continued demand for private road and bridge repairs in response to
37 damage caused by Tropical Storm Fred.
38 b. $5,000,000 to provide additional funding to local government units for
39 the removal and disposal of debris and public infrastructure repairs
40 from damage caused by Tropical Storm Fred.
41 c. $21,402,739 to Star Telephone Membership Corporation to relocate
42 the Corporation's headquarters to another location within Sampson
43 County. If Star Telephone Membership Corporation receives federal
44 funds from FEMA or any other federal agency for this purpose, the
45 Corporation shall return the amount of funds equal to any federal
46 award to the Reserve as soon as practicable. The Corporation shall
47 return any remaining State funds allocated for this purpose after the
48 receipt of a federal award to the Reserve. Any funds returned to the
49 Reserve pursuant to this sub-subdivision shall remain in the Reserve
50 until appropriated by the General Assembly.

1 d. $12,000,000 to Carteret County as a directed grant for debris removal
2 and storm resiliency.
3 e. $8,300,000 to the Town of Canton as a directed grant for various
4 disaster recovery projects.
5 f. $3,500,000 to the Town of Lillington as a directed grant for flood
6 resiliency projects.
7 g. $1,000,000 to the North Carolina Resource Conservation and
8 Development Association as a directed grant for flood mitigation
9 projects.
10 h. $600,000 for the purchase of portable deployable emergency
11 communications assets capable of operating independent from
12 commercial power and capable of generating an area of Wi-Fi and
13 cellular coverage using Federal Communications
14 Commission-licensed spectrum, including the Band 14 spectrum.
15 These emergency communications assets shall be strategically staged
16 across the State to enable swift response to emergencies by supporting
17 public safety and emergency management communications. Up to one
18 hundred thousand dollars ($100,000) of these funds shall be used to
19 provide emergency communications assets as described in this
20 sub-subdivision to the North Carolina Search and Rescue Program,
21 established in G.S. 166A-166.
22 i. $400,000 to Southeast Drainage Office, Inc., a nonprofit corporation,
23 for stream and river cleanup, maintenance, and drainage of waterways
24 in Pitt County and surrounding counties. The Office shall provide
25 training on and demonstration of best practices for debris removal and
26 drainage system maintenance activities to public and private entities.
27 j. $198,500 to the Town of Colerain as a directed grant for flood
28 recovery.
29 k. $114,100 to Hyde County as a directed grant for a pilot project to
30 contract for the deployment of an emergency communications assets
31 system with all of the following capabilities:
32 1. Operating independently from commercial power systems
33 2. Using satellite transport.
34 3. Generating an area of Wi-Fi and cellular coverage using
35 Federal Communications Commission-licensed spectrum.
36 The pilot project shall be strategically placed across Ocracoke Island
37 to enable swift response to emergencies by supporting public safety
38 and emergency management communications. The pilot project shall
39 integrate any existing emergency alert systems and the 9-1-1 system.
40 During nonemergency periods, the pilot project may be used to
41 provide Wi-Fi support and connectivity to local businesses on the
42 island, but shall not provide internet access to the general public. No
43 later than July 1, 2024, the Division shall submit a report, in
44 consultation with Hyde County, to the Joint Legislative Emergency
45 Management Oversight Committee and the Fiscal Research Division
46 detailing the use of the system, the results of the pilot project, and the
47 potential of the pilot project to be a permanent system for remote or
48 disaster-prone areas of the State.
49 (4) $10,000,000 to the Department of Agriculture and Consumer Services to
50 provide additional funding to the Agricultural Crop Loss Program established
51 in Section 5.9B of S.L. 2021-180, for the following purposes:

1 a. $5,000,000 to provide additional assistance to applicants affected by
2 Tropical Storm Fred.
3 b. $5,000,000 to provide additional assistance to applicants affected by
4 the Freeze Disaster, as defined in Section 4.4 of S.L. 2022-6.
5 (5) $6,500,000 to the Department of Natural and Cultural Resources to provide a
6 directed grant to the North Carolina Coastal Federation, Inc., a nonprofit
7 corporation, for living shoreline work at Hammocks Beach State Park, Black
8 Duck Island on the Oregon Inlet, Fort Macon State Park, and Pine Knoll
9 Shores Aquarium.
10 (6) $2,000,000 to the Department of Information Technology to provide matching
11 funds for mobile broadband providers to deploy infrastructure to extend
12 coverage or enhance the capacity of the Public Safety Broadband Network to
13 unserved and underserved State agency campuses. The Department shall
14 determine the match rate for each campus based on the ability of each campus
15 to provide funding based on the Department's criteria. Mobile broadband
16 infrastructure funded under this subdivision shall be capable to utilizing the
17 Band 14 spectrum.
18 SECTION 5.4.(b) Reporting Requirement. – The Office of State Budget and
19 Management shall report on all allocations made under this section in accordance with Section
20 5.9(t) of S.L. 2021-180.
21
22 AGRICULTURAL CROP LOSS PROGRAM EXPANSION
23 SECTION 5.4.(c) Section 5.9A(b) of S.L. 2021-180 reads as rewritten:
24 "SECTION 5.9A.(b) Limitation; Applicability. – The funds allocated in this section are to
25 be spent in a manner consistent with the purposes as set forth in this section for relief and recovery
26 occasioned by Tropical Storm Fred. Funds allocated in this section shall be used only in the
27 following counties: Avery, Buncombe, Cherokee, Clay, Haywood, Henderson, Jackson, Macon,
28 Madison, McDowell, Mitchell, Rutherford, Transylvania, Watauga, and Yancey."
29 SECTION 5.4.(d) Section 4.4(e) of S.L. 2022-6 reads as rewritten:
30 "SECTION 4.4.(e) Definitions. – For purposes of this section, the following definitions
31 apply:
32 (1) Agricultural commodity. – As defined in Section 5.9B(i) of S.L. 2021-180, as
33 amended by S.L. 2021-189.
34 (2) Person. – As defined in Section 5.9B(i) of S.L. 2021-180, as amended by S.L.
35 2021-189.
36 (3) Qualifying counties. – Alexander, Buncombe, Cleveland, Haywood,
37 Henderson, Lincoln, McDowell, Mitchell, Polk, Rutherford, and Transylvania
38 Transylvania, Wilkes, and Yancey Counties."
39 SECTION 5.4.(e) Agricultural Crop Loss Program Extension. – The counties listed
40 in subsections (c) and (d) of this section shall be added to the Agricultural Crop Loss Program
41 and shall be afforded six additional months after the expiration of the application deadlines set
42 forth in Section 5.9B of S.L. 2021-180, as amended by Section 1.5 of S.L. 2021-189, to apply
43 for qualifying assistance through the Program. The Department of Agriculture and Consumer
44 Services shall collect additional information from each county added to the Program in
45 subsections (c) and (d) of this section. The Department shall include the additional counties added
46 to the Agricultural Crop Loss Program in this section to the reporting requirement pursuant to
47 Section 5.9B(j) of S.L. 2021-180, as amended by Section 4.4(g) of S.L. 2022-6.
48
49 TECHNICAL CORRECTIONS
50 SECTION 5.4.(f) Section 5.9(c) of S.L. 2021-180 reads as rewritten:

1 "SECTION 5.9.(c) Flood Resiliency Blueprint. – Of the funds allocated in subdivision (a)(1)
2 (a)(7) of this section, the Department of Environmental Quality, Division of Mitigation Services
3 (DMS), shall contract with an organization to develop a statewide Flood Resiliency Blueprint for
4 major watersheds impacted by flooding, including, among others, the Cape Fear River and the
5 Neuse River Basins. The watershed blueprint shall form the backbone of a State flood planning
6 process that increases community resiliency to flooding, shall be a resource for riverine and
7 stream management to reduce flooding, and should support the establishment and furtherance of
8 local government stormwater maintenance programs. The blueprint shall identify the major
9 watersheds affected by flooding and direct these funds toward the activities which are central to
10 the creation of an actionable blueprint, namely flood risk assessment, identification of data gaps,
11 and recommendations to reduce flood risk for each target watershed. When developing the
12 blueprint with the organization selected, DMS shall ensure the blueprint incorporates local
13 knowledge, community goals, projections of future flood risk, and the best available science and
14 hydrologic modeling to create a decision tool for flood mitigation investments and strategies
15 from local watersheds up to whole river basins. A successful blueprint should ultimately lead to
16 a prioritized set of projects and funding strategies that the State can implement. DMS and the
17 organization selected are encouraged to examine examples from other states such as the
18 Louisiana Coastal Master Plan or the flood resiliency planning processes in South Carolina and
19 Virginia. The organization shall send all necessary information to DMS on the implementation
20 of the blueprint upon request by DMS. The organization shall submit an initial draft of the
21 blueprint to DMS no later than December 31, 2023. DMS shall report by July 1, 2022, and
22 annually thereafter to the Joint Legislative Commission on Governmental Operations and the
23 Fiscal Research Division on the implementation of this subsection."
24 SECTION 5.4.(g) Section 5.9(a)(30)a. of S.L. 2021-180 reads as rewritten:
25 "a. $5,000,000 to the City of Southport for waterfront stabilization from
26 storm damage.stabilization."
27 SECTION 5.4.(h) Section 5.9(a)(20) of S.L. 2021-180 reads as rewritten:
28 "(20) $6,000,000 to the Office of State Budget and Management to provide grants
29 to the North Carolina Association of Regional Councils of Governments to
30 provide technical assistance with local recovery funds.and regional disaster
31 recovery, mitigation, and resiliency efforts."
32 SECTION 5.4.(i) Section 5.9(a)(24) of S.L. 2021-180 reads as rewritten:
33 "(24) $5,000,000 to the Department of Public Safety, Division of Emergency
34 Management, for (i) the Lumberton CSX/Floodgates project as referenced in
35 the May 1, 2018, Lumber River Basin Flood Analysis and Mitigation Strategy
36 Report.Report and (ii) water, sewer, and drainage infrastructure, street and
37 road infrastructure, electrical utility and natural gas infrastructure, and land
38 acquisition."
39 SECTION 5.4.(j) Notwithstanding any provision of S.L. 2021-180 or the Committee
40 Report described in Section 43.2 of that act to the contrary, the sum of ten million dollars
41 ($10,000,000) in nonrecurring funds for the 2021-2022 fiscal year appropriated in that act to the
42 Housing Finance Agency for a multifamily affordable housing project in Robeson County shall
43 instead be used for a multifamily affordable housing project that (i) meets the elevation
44 requirements for construction in a floodplain and (ii) is an affordable housing development in
45 Lumberton, North Carolina, that has qualified for a low-income housing credit under section 42
46 of the Internal Revenue Code.
47
48 HOME APPLIANCE SERVICE AGREEMENT MODIFICATION
49 SECTION 5.6.(a) G.S. 66-371(b) reads as rewritten:
50 "(b) The following definitions apply in this section:

1 (1) "Home appliance" means a clothes washing machine or dryer; kitchen
2 appliance; vacuum cleaner; sewing machine; home audio or video electronic
3 equipment; home electronic data processing equipment; home exercise and
4 fitness equipment; home health care equipment; power tools; heater or air
5 conditioner, other than a permanently installed unit using internal ductwork;
6 or other personal consumer goods.
7 (2) "Home appliance service agreement" means any contract or agreement
8 indemnifying the home appliance service agreement holder against loss
9 caused by damage or failure, arising out of a power surge or the ownership,
10 operation, or use use, or accidental damage from handling of a home
11 appliance, of a mechanical or other component part of the home appliance that
12 is listed in the agreement. The term does not include a contract or agreement
13 that reimburses the home appliance service agreement holder for damage
14 occurring during delivery or installation of a home appliance.
15 (3) "Home appliance service agreement company" means any person that issues
16 home appliance service agreements and that is not a licensed insurer."
17 SECTION 5.6.(b) This section is effective when this act becomes law and applies
18 to home appliance service agreements entered into on or after that date.
19
20 AUTHORIZE SANITARY DISTRICTS TO CREATE, MAINTAIN, AND OPERATE
21 PARKS AND RECREATION PROGRAMS AND FACILITIES
22 SECTION 5.7. G.S. 130A-55 reads as rewritten:
23 "§ 130A-55. Corporate powers.
24 A sanitary district board shall be a body politic and corporate and may sue and be sued in
25 matters relating to the sanitary district. Notwithstanding any limitation in the petition under
26 G.S. 130A-48, but subject to the provisions of G.S. 130A-55(17)e, each sanitary district may
27 exercise all of the powers granted to sanitary districts by this Article. In addition, the sanitary
28 district board shall have the following powers:
29 …
30 (4a) To provide for the creation, maintenance, and operation of parks and
31 recreation programs and facilities with all the powers provided to cities and
32 counties in G.S. 160A-353. However, a sanitary district may not exercise the
33 condemnation powers granted either in this Article or as set forth in
34 G.S. 160A-353 to acquire real property for parks and recreation programs or
35 facilities.
36 …."
37
38 PART VI. COMMUNITY COLLEGE SYSTEM
39
40 EXPAND RISE UP TRAINING AND CREDENTIALING PROGRAM
42 "SECTION 6.8.(a) The Community Colleges System Office shall partner with the North
43 Carolina Retail Merchants Association and the Retail Consumer Alliance Foundation to
44 implement the RISE Up credentialing program for the 2021-2022 2021-2023 fiscal year
45 biennium to teach foundational skills to students attending community colleges and cooperative
46 innovative high schools for career success in the retail industry, customer service, and sales,
47 including which may include inventory management and profitability, as well as supply chain
48 warehouse, inventory, and logistics. The RISE Up credentialing program provides for offers all
49 of the following: (i) opportunities for the industry to share the skills valued in job candidates and
50 employees, (ii) valuable skills needed in any industry, particularly customer service, sales, and
51 skills to run a business, (iii) job readiness skills, such as resume preparation, interviewing

1 strategies, professionalism in the workplace, and soft skills, including listening and problem
2 solving, (iv) an understanding of the retail industry and its wide variety of jobs, and (v)
3 preparation for students for the nearly 130,000 retail establishments and more than 1,000,000
4 retail jobs in North Carolina.
5 "SECTION 6.8.(b) The RISE Up credentialing program shall be offered to students at
6 community colleges and cooperative innovative high schools through each partner community
7 college with the opportunity for up to four different levels of the RISE Up credentials that include
8 the following:
9 (1) Retail Industry Fundamentals.
10 (2) Customer Service & Sales.
11 (3) Operations and Profit.
12 (4) Supply Chain: Warehouse, Inventory, & Logistics.
13 "SECTION 6.8.(c) The System Office, in collaboration with the North Carolina Retail
14 Merchants Association and the Retail Consumer Alliance Foundation, shall submit an initial
15 report by October December 1, 2022, and a final report by October December 1, 2023, to the
16 Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on
17 Education/Higher Education, the House Appropriations Committee on Education, and the Fiscal
18 Research Division on the results of implementing the RISE Up credentialing programs at partner
19 community colleges for students at cooperative innovative high schools, programs, including at
20 least the following information:
21 (1) The number of students who received or are in the process of receiving
22 credentials, by type of credential, and student credential.
23 (2) Student outcomes related to the credentialing, such as subsequent internships
24 or job placements.credentialing.
25 (3) A list of the community colleges and cooperative innovative high schools
26 participating in the program."
27 SECTION 6.1.(b) Subsection (a) of this section applies to students enrolled at
28 community colleges in the 2022-2023 academic year.
29
30 FUNDS FOR JOHNSTON COMMUNITY COLLEGE FOR A DIGITAL SYSTEM TO
31 OPTIMIZE COURSE SCHEDULING
32 SECTION 6.2. Of the funds appropriated in this act from the General Fund to the
33 Community College System Office for the 2022-2023 fiscal year, the Office shall allocate one
34 hundred thousand dollars ($100,000) in nonrecurring funds to Johnston Community College to
35 contract with a third-party entity to implement a digital system to optimize course scheduling
36 based on predictive enrollment data. The system shall provide credentialing services to improve
37 workforce and upskilling programs for the community college, its students, and local employers.
38
39 SURRY COMMUNITY COLLEGE NORTHERN REGIONAL HOSPITAL MOU
40 SECTION 6.3. Of the funds appropriated in this act from the Local Project Reserve,
41 established pursuant to Section 2.2 of this act, to the Community Colleges System Office for the
42 2022-2023 fiscal year, the System Office shall allocate the sum of one million dollars
43 ($1,000,000) in nonrecurring funds to Surry Community College to enter into a memorandum of
44 understanding (MOU) with Northern Regional Hospital in Mount Airy, North Carolina, to train
45 and employ up to eight licensed nurse educators. Nurse educators employed by Northern
46 Regional Hospital with these funds shall provide clinical instruction services for nursing students
47 on a full-time basis for affiliated nursing programs.
48
49 PART VII. PUBLIC INSTRUCTION
50
51 SCHOOL BUSINESS SYSTEM MODERNIZATION

1 SECTION 7.1.(a) Section 7.79(b) of S.L. 2021-180 reads as rewritten:
2 "SECTION 7.79.(b) From funds available to the Department of Public Instruction for the
3 School Business System Modernization Plan for the 2021-2023 fiscal biennium, the Department
4 shall establish a grant program for the 2021-2022 fiscal year to provide funds to eligible local
5 school administrative units and charter schools to transition from school business systems that
6 are located on the premises of the local school administrative unit or charter school to
7 internet-based school business systems. A local school administrative unit or charter school is
8 eligible to receive funds under the grant program if the school does not participate in the School
9 Business System Modernization Plan. Funds shall be provided to local school administrative
10 units and charter schools in appropriate amounts, as determined by the Department.migrate the
11 unit's or charter school's school business data to an off-site premises. All local school
12 administrative units and charter schools shall store their school business data at an off-site
13 premises by June 30, 2023. The Department shall reserve funding from modernization funds to
14 complete the modernization work at the Department and shall ensure the original School
15 Business System Modernization Plan remains funded at its current level for local school
16 administrative units and charter schools that elect to participate."
17 SECTION 7.1.(b) Section 7.79 of S.L. 2021-180 is amended by adding a new
18 subsection to read:
19 "SECTION 7.79.(c) The Department shall establish a grant program to transition a local
20 school administrative unit or charter school to an internet-based school business system that
21 meets the Uniform Education Reporting System's requirements under G.S. 115C-12(18). A local
22 school administrative unit or charter school is eligible to receive funds under the grant program
23 if the school does not participate in the School Business System Modernization Plan. Funds shall
24 be provided to local school administrative units and charter schools in appropriate amounts, as
25 determined by the Department."
26
27 INCREASE SCHOOL RESOURCE OFFICER GRANT MATCH IN LOW-WEALTH
28 COUNTIES
29 SECTION 7.2.(a) G.S. 115C-105.60(e) reads as rewritten:
30 "(e) Award of Funds. – From funds made available for grants for school resource officers,
31 the Superintendent of Public Instruction shall award grants to qualifying public school units for
32 school resource officers in elementary and middle schools, as follows:
33 (1) Grants Public school units located, in whole or in part, in a county with at least
34 one local school administrative unit that received low-wealth supplemental
35 funding in the previous fiscal year shall have grants matched on the basis of
36 four dollars ($4.00) in State funds for every one dollar ($1.00) in non-State
37 funds. All other public school units shall be matched on the basis of two
38 dollars ($2.00) in State funds for every one dollar ($1.00) in non-State funds.
39 (2) Qualifying public school units may use these funds to employ school resource
40 officers in elementary and middle schools, to train them, or both.
41 (3) Training shall be provided, in partnership with the qualifying public school
42 unit, by a community college, a local law enforcement agency, or the North
43 Carolina Justice Academy. Any training shall include instruction on research
44 into the social and cognitive development of elementary school and middle
45 school children."
46 SECTION 7.2.(b) This section becomes effective on July 1, 2022, and applies to
47 grants issued for the 2022-2023 school year.
48
49 ELIMINATE STUDENT COPAY FOR REDUCED-PRICE LUNCH
50 SECTION 7.3. Funds appropriated from the General Fund to the Department of
51 Public Instruction by this act for the 2022-2023 fiscal year for reduced-price lunch copays shall

1 be used to provide school lunches at no cost to students of all grade levels qualifying for
2 reduced-price meals in all schools participating in the National School Lunch Program in the
3 2022-2023 school year. If the funds are insufficient to provide school lunches at no cost to
4 students qualifying for reduced-price meals, the Department of Public Instruction shall also use
5 any excess funds appropriated for the National School Breakfast Program for the purposes of this
6 section.
7
8 CTE MODERNIZATION AND SUPPORT
9 SECTION 7.4.(a) Of the funds appropriated to the Department of Public Instruction
10 in this act from the General Fund for the 2022-2023 fiscal year, the Department shall use up to
11 two million dollars ($2,000,000) in nonrecurring funds for grants to modernize Career and
12 Technical Education (CTE) programming, materials, training, and development in schools
13 serving sixth through eighth grade students. The Department shall establish a grant program for
14 the 2022-2023 school year to which a public school unit or a regional partnership of more than
15 one public school unit may apply to receive funds if a school within the unit or partnership has
16 an existing CTE program. When awarding grants under this subsection, the Department shall
17 prioritize public school units (i) located, in whole or in part, in a county with at least one local
18 school administrative unit that received low-wealth supplemental funding in the previous fiscal
19 year and (ii) that have a high population of at-risk students or students with disabilities. Grant
20 recipients shall use the funds distributed to them under this subsection to procure and implement
21 a career and workforce development platform that aligns with the North Carolina Career and
22 Technical Education Standards with modules that assist teachers in preparing students for
23 high-wage, high-growth career areas that includes at least the following components:
24 (1) Instructional strategies and guided lesson plans to assist teachers with
25 classroom implementation and differentiation.
26 (2) Media-based instructional content for demonstrating and teaching skills
27 required for applicable career areas.
28 (3) Content delivery for instruction types, including face-to-face, self-paced, and
29 distance or hybrid learning.
30 (4) A focus on mastery-based learning.
31 (5) Guided projects and activities to incorporate hands-on application of skills.
32 (6) Reporting features to provide data on student progress.
33 (7) Guidance for students to obtain industry certifications.
34 (8) Career connections to provide examples of career opportunities.
35 SECTION 7.4.(b) Of the funds appropriated to the Department of Public Instruction
36 in this act from the General Fund for the 2022-2023 fiscal year, the Department shall use up to
37 one million dollars ($1,000,000) in nonrecurring funds to provide grants for the 2022-2023
38 school year to fund ancillary items necessary for the CTE program at a given school in addition
39 to equipment considered under G.S. 115C-154.2. Ancillary items necessary to a CTE program
40 include greenhouses, cars, animals and livestock, or power tools. The Department may consult
41 with the Department of Agriculture and Consumer Services when evaluating a grant program for
42 selection that includes the purchase of animals. A public school unit or a regional partnership of
43 more than one public school unit may apply to receive funds. When awarding grants under this
44 subsection, the Department shall prioritize public school units (i) located, in whole or in part, in
45 a county with at least one local school administrative unit that received low-wealth supplemental
46 funding in the previous fiscal year and (ii) that have a high population of at-risk students or
47 students with disabilities. Grant recipients may make ancillary items available to any students
48 within the public school unit or partnership regardless of whether the student is identified as
49 at-risk or a student with a disability.
50 SECTION 7.4.(c) The Department shall create and make available an application
51 for grants under this section no later than the beginning of the 2022-2023 school year. Applicants

1 shall submit their application to receive grant funds to the Department no later than January 15,
2 2023. The Department shall approve or deny each application within 30 days of receipt.
3 SECTION 7.4.(d) All recipients of grants under this section for the 2022-2023
4 school year shall submit a report to the Department no later than October 15, 2023, on the
5 outcomes of any programs funded by grants received under this section, including data collection
6 methods for reporting on student outcomes, impacts of the program, and use of State funds. The
7 Department shall then submit a report to the Joint Legislative Education Oversight Committee
8 and the Fiscal Research Division on the overall outcomes of the grant programs no later than
9 December 15, 2023.
10
11 NEW COOPERATIVE INNOVATIVE HIGH SCHOOLS
12 SECTION 7.5.(a) With the funds appropriated to the Department of Public
13 Instruction by this act for cooperative innovative high schools, the Department shall allocate to
14 local school administrative units the sum of seven hundred thirty thousand dollars ($730,000) in
15 recurring funds for the 2022-2023 fiscal year in amounts consistent with those set forth in Section
16 7.22 of S.L. 2017-57 as supplemental funding for the following cooperative innovative high
17 schools for the 2022-2023 school year:
18 (1) Cabarrus Early College of Health Sciences.
19 (2) EDGE Academy of Health Sciences.
20 (3) Wake Early College of Information and Biotechnologies.
21 SECTION 7.5.(b) Beginning with the 2022-2023 school year and for subsequent
22 school years thereafter, notwithstanding G.S. 115C-238.51A(c), G.S. 115C-238.54, and any
23 other provision of law to the contrary, Cabarrus Early College of Health Sciences, EDGE
24 Academy of Health Sciences, and Wake Early College of Information and Biotechnologies shall
25 be permitted to operate in accordance with G.S. 115C-238.53 and G.S. 115C-238.54 as
26 cooperative innovative high schools approved under G.S. 115C-238.51A(c) and shall be subject
27 to the evaluation requirements of G.S. 115C-238.55.
28
29 INCREASE DPI FUNDS FOR SUPPORT SERVICES
30 SECTION 7.6. G.S. 115C-546.2(e) reads as rewritten:
31 "(e) The State Board of Education may use up to one million five hundred thousand dollars
32 ($1,500,000) two million dollars ($2,000,000) each year of monies in the Fund to support
33 positions in the Department of Public Instruction's Support Services Division."
34
35 STANDARDS OF STUDENT CONDUCT
36 SECTION 7.7.(a) G.S. 115C-390.1 reads as rewritten:
37 "§ 115C-390.1. State policy and definitions.
38 …
39 (b) The following definitions apply in this Article:
40 (1) Alternative education services. – Part or full-time programs, wherever
41 situated, providing direct or computer-based instruction that allow a student
42 to progress in one or more core academic courses. Alternative education
43 services include programs established by the local board of education in
44 conformity with G.S. 115C-105.47A and local board of education
45 policies.policies of the governing body of a public school unit.
46 …
47 (4) Educational property. – Any school building or bus, school campus, grounds,
48 recreational area, athletic field, or other property under the control of any local
49 board of education or charter school.public school unit.
50 …

1 (9) Principal. – Includes the principal and the principal's designee.designee, or if
2 there is no designated principal, the staff member designated by the governing
3 body of the public school unit with the highest decision-making authority at
4 an individual school.
5 …
6 (11) School personnel. – Any of the following:
7 a. An employee of a local board of education.governing body of a public
8 school unit.
9 b. Any person working on school grounds or at a school function under
10 a contract or written agreement with the public school system unit to
11 provide educational or related services to students.
12 c. Any person working on school grounds or at a school function for
13 another agency providing educational or related services to students.
14 …
15 (14) Superintendent. – Includes the superintendent and the superintendent's
16 designee.designee, or if there is no superintendent, the staff member with the
17 highest decision-making authority and that staff member's designee.
18 …."
19 SECTION 7.7.(b) G.S. 115C-390.2 reads as rewritten:
20 "§ 115C-390.2. Discipline policies.
21 (a) Local boards of education Governing bodies of public school units, in consultation
22 with teachers, school-based administrators, parents, and local law enforcement agencies, shall
23 adopt policies to govern the conduct of students and establish procedures to be followed by
24 school officials in disciplining students. These policies must be consistent with the provisions of
25 this Article and the constitutions, statutes, and regulations of the United States and the State of
26 North Carolina. In adopting these policies, governing bodies of public school units shall consider
27 any existing federal guidance for the discipline of students with disabilities as well as other
28 guidance on school discipline practices issued by the United States Department of Education.
29 (b) Board Governing body policies shall include or provide for the development of a
30 Code of Student Conduct that notifies students of the standards of behavior expected of them,
31 conduct that may subject them to discipline, and the range of disciplinary measures that may be
32 used by school officials.
33 (b1) No later than September 1 of each year, each governing body of a public school unit
34 shall provide the Department of Public Instruction with a copy of its most up-to-date student
35 discipline policies and Code of Student Conduct.
36 (c) Board Governing body policies may authorize suspension for conduct not occurring
37 on educational property, but only if the student's conduct otherwise violates the Code of Student
38 Conduct and the conduct has or is reasonably expected to have a direct and immediate impact on
39 the orderly and efficient operation of the schools or the safety of individuals in the school
40 environment.
41 (d) Board Governing body policies shall not allow students to be long-term suspended or
42 expelled from school solely for truancy or tardiness offenses and shall not allow short-term
43 suspension of more than two days for such offenses.
44 (e) Board Governing body policies shall not impose mandatory long-term suspensions or
45 expulsions for specific violations unless otherwise provided in State or federal law.
46 (f) Board Governing body policies shall minimize the use of long-term suspension and
47 expulsion by restricting the availability of long-term suspension or expulsion to those violations
48 deemed to be serious violations of the board's governing body's Code of Student Conduct that
49 either threaten the safety of students, staff, or school visitors or threaten to substantially disrupt
50 the educational environment. Examples of conduct that would not be deemed to be a serious
51 violation include the use of inappropriate or disrespectful language, noncompliance with a staff

1 directive, dress code violations, and minor physical altercations that do not involve weapons or
2 injury. The principal may, however, in his or her discretion, determine that aggravating
3 circumstances justify treating a minor violation as a serious violation.
4 (g) Board Governing body policies shall not prohibit the superintendent and principals
5 from considering the student's intent, disciplinary and academic history, the potential benefits to
6 the student of alternatives to suspension, and other mitigating or aggravating factors when
7 deciding whether to recommend or impose long-term suspension.
8 (h) Board Governing body policies shall include the procedures to be followed by school
9 officials in suspending, expelling, or administering corporal punishment to any student, which
10 shall be consistent with this Article.
11 (i) Each local board governing body of a public school unit shall publish all policies,
12 administrative procedures, or school rules mandated by this section and make them available to
13 each student and his or her parent at the beginning of each school year and upon request. This
14 information shall include the full range of responses to violations of disciplinary rules, including
15 responses that do not remove a student from the classroom or school building. Governing bodies
16 may require students and parents or guardians to sign an acknowledgement that they have
17 received a copy of such policies, procedures, or rules.
18 (j) Local boards of education Governing bodies of public school units are encouraged to
19 include in their safe schools plans, adopted pursuant to G.S. 115C-105.47, research-based
20 behavior management programs that take positive approaches to improving student behaviors.
21 (k) School officials are encouraged to use a full range of responses to violations of
22 disciplinary rules, such as conferences, counseling, peer mediation, behavior contracts,
23 instruction in conflict resolution and anger management, detention, academic interventions,
24 community service, and other similar tools that do not remove a student from the classroom or
25 school building.
26 (l) Board Governing body policies shall state that absences under G.S. 130A-440 shall
27 not be suspensions. A student subject to an absence under G.S. 130A-440 shall be provided the
28 following:
29 (1) The opportunity to take textbooks and school-furnished digital devices home
30 for the duration of the absence.
31 (2) Upon request, the right to receive all missed assignments and, to the extent
32 practicable, the materials distributed to students in connection with the
33 assignment.
34 (3) The opportunity to take any quarterly, semester, or grading period
35 examinations missed during the absence period.
36 (m) Nothing in this section or any section of this Chapter shall be construed as regulating
37 the discretion of a governing body of a public school unit to devise, impose, and enforce personal
38 appearance codes."
39 SECTION 7.7.(c) G.S. 115C-390.3 reads as rewritten:
40 "§ 115C-390.3. Reasonable force.
41 …
42 (c) Notwithstanding any other law, no officer, member, or employee of the State Board
43 of Education, the Superintendent of Public Instruction, or of a local board of education, governing
44 body of a public school unit, individually or collectively, shall be civilly liable for using
45 reasonable force in conformity with State law, State or local rules, or State or local policies
46 regarding the control, discipline, suspension, and expulsion of students. Furthermore, the burden
47 of proof is on the claimant to show that the amount of force used was not reasonable.
48 (d) No school employee shall be reprimanded or dismissed for acting or failing to act to
49 stop or intervene in an altercation between students if the employee's actions are consistent with
50 local board governing body policies. Local boards of education Governing bodies of public
51 school units shall adopt policies, pursuant to their authority under G.S. 115C-47(18), or as

1 otherwise provided by law, which provide guidelines for an employee's response if the employee
2 has personal knowledge or actual notice of an altercation between students."
3 SECTION 7.7.(d) G.S. 115C-390.4 reads as rewritten:
4 "§ 115C-390.4. Corporal punishment.
5 (a) Each local board of education governing body of a public school unit shall determine
6 whether corporal punishment will be permitted in its public school administrative unit.
7 Notwithstanding a local board of education's governing body's prohibition on the use of corporal
8 punishment, school personnel may use physical restraint in accordance with federal law and
9 G.S. 115C-391.1 and reasonable force pursuant to G.S. 115C-390.3.
10 …
11 (c) Each local board of education governing body of a public school unit shall report
12 annually to the State Board of Education, in a manner prescribed by the State Board of Education,
13 on the number of times that corporal punishment was administered. The report shall be in
14 compliance with the federal Family Educational Rights and Privacy Act, 20 U.S.C. § 1232g, and
15 shall include the following:
16 …."
17 SECTION 7.7.(e) G.S. 115C-390.6 reads as rewritten:
18 "§ 115C-390.6. Short-term suspension procedures.
19 …
20 (e) A student is not entitled to appeal the principal's decision to impose a short-term
21 suspension to the superintendent or local board of education. governing body of the public school
22 unit. Further, such a decision is not subject to judicial review. Notwithstanding this subsection,
23 the local board of education, governing body, in its discretion, may provide students an
24 opportunity for a review or appeal of a short-term suspension to the superintendent or local board
25 of education.governing body."
26 SECTION 7.7.(f) G.S. 115C-390.8 reads as rewritten:
27 "§ 115C-390.8. Long-term suspension procedures.
28 (a) When a student is recommended by the principal for long-term suspension, the
29 principal shall give written notice to the student's parent. The notice shall be provided to the
30 student's parent by the end of the workday during which the suspension was recommended when
31 reasonably possible or as soon thereafter as practicable. The written notice shall provide at least
32 the following information:
33 …
34 (6) The extent to which the local board governing body policy permits the parent
35 to have an advocate, instead of an attorney, accompany the student to assist in
36 the presentation of his or her appeal.
37 …
38 (8) A reference to the local board governing body policy on the expungement of
39 discipline records as required by G.S. 115C-402.
40 (b) Written notice may be provided by certified mail, fax, e-mail, or any other written
41 method reasonably designed to achieve actual notice of the recommendation for long-term
42 suspension. When school personnel are aware that English is not the primary language of the
43 parent or guardian, the notice shall be written in both English and in the primary language of the
44 parent or guardian when the appropriate foreign language resources are readily available. All
45 notices described in this section shall be written in plain English, and shall include the following
46 information translated into the dominant non-English language used by residents within the local
47 school administrative unit:public school unit:
48 …
49 (d) The formal hearing may be conducted by the local board of education, governing
50 body of the public school unit, by the superintendent, or by a person or group of persons
51 appointed by the local board governing body or superintendent to serve as a hearing officer or

1 hearing panel. Neither the board governing body nor the superintendent shall appoint any
2 individual to serve as a hearing officer or on a hearing panel who is under the direct supervision
3 of the principal recommending suspension. If the hearing is conducted by an appointed hearing
4 officer or hearing panel, such officer or panel shall determine the relevant facts and credibility of
5 witnesses based on the evidence presented at the hearing. Following the hearing, the
6 superintendent or local board governing body shall make a final decision regarding the
7 suspension. The superintendent or board governing body shall adopt the hearing officer's or
8 panel's factual determinations unless they are not supported by substantial evidence in the record.
9 (e) Long-term suspension hearings shall be conducted in accordance with policies
10 adopted by the board of education. governing body of the public school unit. Such policies shall
11 offer the student procedural due process including, but not limited to, the following:
12 …
13 (g) Unless the decision was made by the local board, governing body, the student may
14 appeal the decision to the a local board of education in accordance with G.S. 115C-45(c) and
15 policies adopted by the board. governing body of the public school unit. Notwithstanding the
16 provisions of G.S. 115C-45(c), a student's appeal to the board governing body of a decision
17 upholding a long-term suspension shall be heard and a final written decision issued in not more
18 than 30 calendar days following the request for such appeal.
19 …
20 (i) A decision of the local board governing body of the public school unit to uphold the
21 long-term suspension of a student is subject to judicial review in accordance with Article 4 of
22 Chapter 150B of the General Statutes. The action must be brought within 30 days of the local
23 board's governing body's decision. A person seeking judicial review shall file a petition in the
24 superior court of the county where the local board governing body made its decision. Local rules
25 notwithstanding, petitions for judicial review of a long-term suspension shall be set for hearing
26 in the first succeeding term of superior court in the county following the filing of the certified
27 copy of the official record."
28 SECTION 7.7.(g) G.S. 115C-390.9 reads as rewritten:
29 "§ 115C-390.9. Alternative education services.
30 (a) Students who are long-term suspended shall be offered alternative education services
31 unless the superintendent provides a significant or important reason for declining to offer such
32 services. The following may be significant or important reasons, depending on the circumstances
33 and the nature and setting of the alternative education services:
34 …
35 (5) Educationally appropriate alternative education services are not available in
36 the local school administrative public school unit due to limited resources.
37 …
38 (b) If the superintendent declines to provide alternative education services to the
39 suspended student, the student may seek review of such decision by the local board of education
40 governing body of the public school unit as permitted by G.S. 115C-45(c)(2). If the student seeks
41 such review, the superintendent shall provide to the student and the local board, governing body,
42 in advance of the board's governing body's review, a written explanation for the denial of services
43 together with any documents or other information supporting the decision."
44 SECTION 7.7.(h) G.S. 115C-390.10 reads as rewritten:
45 "§ 115C-390.10. 365-day suspension for gun possession.
46 (a) All local boards of education governing bodies of public school units shall develop
47 and implement written policies and procedures, as required by the federal Gun Free Schools Act,
48 20 U.SC. § 7151, requiring suspension for 365 calendar days of any student who is determined
49 to have brought or been in possession of a firearm or destructive device on educational property,
50 or to a school-sponsored event off of educational property. A principal shall recommend to the
51 superintendent the 365-day suspension of any student believed to have violated board governing

1 body policies regarding weapons. The superintendent has the authority to suspend for 365 days
2 a student who has been recommended for such suspension by the principal when such
3 recommendation is consistent with board governing body policies. Notwithstanding the
4 foregoing, the superintendent may modify, in writing, the required 365-day suspension for an
5 individual student on a case-by-case basis. The superintendent shall not impose a 365-day
6 suspension if the superintendent determines that the student took or received the firearm or
7 destructive device from another person at school or found the firearm or destructive device at
8 school, provided that the student delivered or reported the firearm or destructive device as soon
9 as practicable to a law enforcement officer or a school employee and had no intent to use such
10 firearm or destructive device in a harmful or threatening way.
11 …
12 (c) Nothing in this provision shall apply to a firearm that was brought onto educational
13 property for activities approved and authorized by the local board of education, governing body
14 of the public school unit, provided that the local board of education governing body has adopted
15 appropriate safeguards to protect student safety.
16 (d) At the time the student and parent receive notice that the student is suspended for 365
17 days under this section, the superintendent shall provide notice to the student and the student's
18 parent of the right to petition the local board of education governing body of the public school
19 unit for readmission pursuant to G.S. 115C-390.12.
20 …."
21 SECTION 7.7.(i) G.S. 115C-390.11 reads as rewritten:
22 "§ 115C-390.11. Expulsion.
23 (a) Upon recommendation of the superintendent, a local board of education governing
24 body of a public school unit may expel any student 14 years of age or older whose continued
25 presence in school constitutes a clear threat to the safety of other students or school staff. Prior
26 to the expulsion of any student, the local board governing body shall conduct a hearing to
27 determine whether the student's continued presence in school constitutes a clear threat to the
28 safety of other students or school staff. The student shall be given reasonable notice of the
29 recommendation in accordance with G.S. 115C-390.8(a) and (b), as well as reasonable notice of
30 the time and place of the scheduled hearing.
31 (1) The procedures described in G.S. 115C-390.8(e)(1)-(8) apply to students
32 facing expulsion pursuant to this section, except that the decision to expel a
33 student by the local board of education governing body of the public school
34 unit shall be based on clear and convincing evidence that the student's
35 continued presence in school constitutes a clear threat to the safety of other
36 students and school staff.
37 (2) A local board of education governing body of a public school unit may expel
38 any student subject to G.S. 14-208.18 in accordance with the procedures of
39 this section. Prior to ordering the expulsion of a student, the local board of
40 education governing body shall consider whether there are alternative
41 education services that may be offered to the student. As provided by
42 G.S. 14-208.18(f), if the local board of education governing body determines
43 that the student shall be provided educational services on school property, the
44 student shall be under the supervision of school personnel at all times.
45 …
46 (b) During the expulsion, the student is not entitled to be present on any property of the
47 local school administrative public school unit and is not considered a student of the local board
48 of education. governing body of the public school unit. Nothing in this section shall prevent a
49 local board of education governing body from offering access to some type of alternative
50 educational services that can be provided to the student in a manner that does not create safety
51 risks to other students and school staff."

1 SECTION 7.7.(j) G.S. 115C-390.12 reads as rewritten:
2 "§ 115C-390.12. Request for readmission.
3 (a) All students suspended for 365 days or expelled may, after 180 calendar days from
4 the date of the beginning of the student's suspension or expulsion, request in writing readmission
5 to the local school administrative public school unit. The local board of education governing
6 body of the public school unit shall develop and publish written policies and procedures for the
7 readmission of all students who have been expelled or suspended for 365 days, which shall
8 provide, at a minimum, the following process:
9 (1) The process for 365-day suspended students.
10 a. At the local board's governing body's discretion, either the
11 superintendent or the local board governing body itself shall consider
12 and decide on petitions for readmission. If the decision maker is the
13 superintendent, the superintendent shall offer the student an
14 opportunity for an in-person meeting. If the decision maker is the local
15 board of education, governing body of the public school unit, the board
16 governing body may offer the student an in-person meeting or may
17 make a determination based on the records submitted by the student
18 and the superintendent.
19 …
20 c. A superintendent's decision not to readmit the student may be appealed
21 to the local board of education governing body of the public school
22 unit pursuant to G.S. 115C-45(c). The superintendent shall notify the
23 parents of the right to appeal.
24 …
25 (2) The process for expelled students.
26 a. The board of education governing body of the public school unit shall
27 consider all petitions for readmission of expelled students, together
28 with the recommendation of the superintendent on the matter, and shall
29 rule on the request for readmission. The board governing body shall
30 consider the petition based on the records submitted by the student and
31 the response by the administration and shall allow the parties to be
32 heard in the same manner as provided by G.S. 115C-45(c).
33 …
34 c. A decision by a board of education governing body of a public school
35 unit to deny readmission of an expelled student is not subject to
36 judicial review.
37 d. An expelled student may subsequently request readmission not more
38 often than every six months. The local board of education governing
39 body of the public school unit is not required to consider subsequent
40 readmission petitions filed sooner than six months after the previous
41 petition was filed.
42 …
43 (b) If a student is readmitted under this section, the board governing body and the
44 superintendent have the right to assign the student to any program within the school system public
45 school unit and to place reasonable conditions on the readmission.
46 …."
47 SECTION 7.7.(k) G.S. 115C-391.1 reads as rewritten:
48 "§ 115C-391.1. Permissible use of seclusion and restraint.
49 …
50 (b) The following definitions apply in this section:
51 …

1 (9) "School personnel" means:
2 a. Employees of a local board of education.governing body of a public
3 school unit.
4 b. Any person working on school grounds or at a school function under
5 a contract or written agreement with the public school system unit to
6 provide educational or related services to students.
7 c. Any person working on school grounds or at a school function for
8 another agency providing educational or related services to students.
9 …
10 (j) Notice, Reporting, and Documentation.
11 (1) Notice of procedures. – Each local board of education governing body of a
12 public school unit shall provide copies of this section and all local board
13 governing body policies developed to implement this section to school
14 personnel and parents or guardians at the beginning of each school year.
15 …
16 (5) No local board of education governing body of a public school unit or
17 employee of a local board of education governing body shall discharge,
18 threaten, or otherwise retaliate against another employee of the board
19 governing body regarding that employee's compensation, terms, conditions,
20 location, or privileges of employment because the employee makes a report
21 alleging a prohibited use of physical restraint, mechanical restraint, aversive
22 procedure, or seclusion, unless the employee knew or should have known that
23 the report was false.
24 (k) Nothing in this section shall be construed to create a private cause of action against
25 any local board of education, governing body of a public school unit, its agents or employees, or
26 any institutions of teacher education educator preparation programs or their agents or employees
27 or to create a criminal offense."
28 SECTION 7.7.(l) G.S. 14-208.18(f) reads as rewritten:
29 "(f) A person subject to subsection (a) of this section who is eligible under G.S. 115C-378
30 to attend public school may be present on school property if permitted by the local board of
31 education governing body of the public school unit pursuant to G.S. 115C-390.11(a)(2)."
32 SECTION 7.7.(m) This section is effective when it becomes law. Subsections (a)
33 through (k) of this section apply beginning with the 2023-2024 school year. G.S. 115C-390.2(a),
34 as amended by this act, shall apply to material changes to policies existing on July 1, 2023, or
35 new policies adopted on or after July 1, 2023.
36
37 REVISE ALLOCATION OF FUNDS FROM THE ELEMENTARY AND SECONDARY
38 SCHOOL EMERGENCY RELIEF FUND FOR THE NATIONAL COLLEGE
39 ADVISING CORPS
40 SECTION 7.8.(a) Section 3.5(a)(18) of S.L. 2021-25, as enacted by Section 7.27(a)
41 of S.L. 2021-180, reads as rewritten:
42 "(18) $7,042,000 to be transferred to the Board of Governors of The University of
43 North Carolina to be allocated to the National College Advising Corps, Inc.,
44 (CAC), a nonprofit organization, in response to the decrease in
45 underrepresented students matriculating at institutions of higher education
46 during the COVID-19 pandemic. These funds shall be used to support a
47 temporary expansion of existing college advisers and the placement of new
48 college advisers in North Carolina public schools through CAC's program
49 over a two-year period for the purpose of increasing the number of
50 underrepresented, low-income, or first-generation postsecondary degree or
51 certificate students entering and completing their postsecondary education at

1 community colleges and universities. In furthering its mission, CAC operates
2 an innovative model of partnering with schools, communities, families, and
3 postsecondary institutions, including providing for a two-year service
4 opportunity to recent college graduates as near-peer college advisers working
5 full-time in the public schools, with an emphasis on engaging college advisers
6 who have similar backgrounds to the students the program seeks to serve.
7 CAC uses near-peer college advisers to perform various services for students,
8 including (i) attending postsecondary campus visits, fairs, and workshops with
9 students, (ii) assisting with registering for college entrance exams, (iii)
10 assisting with Free Application for Federal Student Aid (FAFSA) registrations
11 and completions, (iv) identifying available scholarships, (v) assisting with
12 postsecondary applications, and (vi) engaging with parents. Funds made
13 available to CAC pursuant to this subdivision shall be matched by CAC on
14 the basis of two dollars ($2.00) in non-State funds, other than federal funds,
15 for every one dollar ($1.00) in federal funds. CAC shall use the funds provided
16 to it under this subdivision to place for the following purposes, in order of
17 priority:
18 a. Supporting all existing college advisers and placing new college
19 advisers in counties designated as tier one and tier two under
20 G.S. 143B-437.08.
21 b. Placing new college advisers in counties designated as tier three under
22 G.S. 143B-437.08.
23 CAC shall use its best efforts to ensure college advisers are located in every
24 county in the State by the end of the 2023-2024 academic year. CAC shall
25 submit an initial interim report by October 1, 2022, a subsequent interim
26 report by October 1, 2023, and a final report by October 1, 2024, to the Joint
27 Legislative Education Oversight Committee and the Fiscal Research Division
28 on the progress of expanding the placement of college advisers, data on the
29 effectiveness of the program in increasing access for students to
30 postsecondary education, and the use of the funds. CAC shall also include in
31 its final report recommendations on (i) training of school counselors in the
32 public schools based on the experiences of college advisers in the program
33 and (ii) best practices from the program for school counselors on continued
34 increased access for students to postsecondary attainment goals."
35 SECTION 7.8.(b) This section is effective July 1, 2022, or when it becomes law,
36 whichever is earlier.
37
38 SCHOOL THREAT ASSESSMENT SURVEY
39 SECTION 7.9. No later than November 15, 2022, all public school units shall report
40 to the Center for Safer Schools the information identified in subdivisions (1) through (5) of this
41 section. No later than February 15, 2023, the Center for Safer Schools, in consultation with the
42 Department of Public Instruction, shall report to the Joint Legislative Education Oversight
43 Committee on recommendations to the General Assembly on a system to identify and address
44 threats in schools that could be implemented by public school units statewide and any additional
45 funding that would be required to support the system. The report shall also include the following
46 information for each public school unit, as reported to the Center, and aggregated on a statewide
47 level:
48 (1) Whether the public school unit or any school in the public school unit has any
49 systems, policies, procedures, or precautions in place to identify or address
50 indications that a student may pose a risk of violence or other harm to

1 themselves or others and, if so, a description of the system, policy, procedure,
2 or precaution.
3 (2) The number and nature of any threats identified under any system identified
4 pursuant to subdivision (1) of this section. For purposes of this report, a threat
5 includes a risk of violence or other harm to self or others.
6 (3) The response to any identified threat and the result of that response.
7 (4) Whether each school in the public school unit has a School Risk Management
8 Plan and the number of drills conducted under the plan.
9 (5) Any other systems, policies, procedures, or precautions the public school unit
10 or a school in the public school unit undertakes with the purpose of
11 minimizing violence and threats in schools.
12
13 CODIFY THE FEMININE HYGIENE PRODUCTS GRANT PROGRAM
14 SECTION 7.10.(a) Article 25B of Chapter 115C of the General Statutes reads as
15 rewritten:
16 "Article 25B.
17 "Mental Health Needs of Student.Students.
18 …
19 "§ 115C-377. Feminine Hygiene Products Grant Program.
20 (a) Program; Purpose. – The Department of Public Instruction shall establish the
21 Feminine Hygiene Products Grant Program (Program) to assist public school units participating
22 in the Program in providing students with feminine hygiene products at no charge to the student.
23 (b) Grants. – To the extent funds are made available for the Program, the Department of
24 Public Instruction shall award public school units grants of up to five thousand dollars ($5,000)
25 on a first-come, first-served basis, and the Department shall prioritize awarding grants to public
26 school units that did not receive an award pursuant to the Program in the previous fiscal year. No
27 public school unit shall receive more than one grant per fiscal year.
28 (c) Reporting. – No later than March 15, 2023, and every year thereafter that funds are
29 made available for the Program, the Department shall report to the Joint Legislative Education
30 Oversight Committee on the public school units receiving grants under the Program, the specific
31 feminine hygiene products purchased with the grant funds, and the impact of the Program on
32 student health and well-being."
33 SECTION 7.10.(b) Section 6(d) of S.L. 2018-32, as amended by Section 1(f) of S.L.
34 2020-7, reads as rewritten:
35 "SECTION 6.(d) Applicability of Specific Statutes. – The local board of education with an
36 approved renewal school system plan shall be subject to the following Articles and sections of
37 Chapter 115C of the General Statutes:
38 …
39 (16a) Article 25B, Mental Health Needs of Students.
40 …."
41 SECTION 7.10.(c) Notwithstanding G.S. 115C-377, as enacted by this section, for
42 the 2022-2023 fiscal year, the Department shall prioritize awarding grants to public school units
43 that did not receive an award pursuant to Section 7.22 of S.L. 2021-180.
44
45 INTEROPERABLE AND INTERCONNECTED STUDENT DATA SYSTEMS STUDY
46 SECTION 7.11. myFutureNC, Inc., in consultation with the North Carolina State
47 Education Assistance Authority, the Department of Public Instruction, the Community College
48 System Office, and The University of North Carolina System Office, in partnership with their
49 respective public school units, community colleges, and universities, shall submit a report to the
50 Joint Legislative Education Oversight Committee and the Fiscal Research Division no later than
51 March 15, 2023, on requirements necessary to create an interconnected and interoperable

1 real-time data system to facilitate communication, collection, and transition of student data
2 between public school units, community colleges, and universities and to provide students access
3 to their own data, including after the student leaves the institution. The goal of such a system
4 would be to share data more efficiently among educational institutions using existing student
5 information management systems, to assist students in earning postsecondary credentials that
6 could assist the student in finding employment, and to eliminate redundant efforts and expenses
7 among the institutions. The report shall include at least the following:
8 (1) Current instances of best practices regarding data warehouses, school
9 district-community partnerships, and relationship management systems.
10 (2) Technology necessary to create such an interconnected and interoperable
11 system and to create a working prototype.
12 (3) Legal considerations for sharing data across institutional systems that would
13 conform with the Family Educational Rights and Privacy Act (FERPA),
14 specifically focusing on student support services.
15 (4) Human capital and machine capabilities, such as artificial intelligence, needed
16 to develop data and analytical capacity across institutions.
17 (5) Any issues that may arise with cultural views on data as an individually owned
18 resource, as opposed to a collaborative tool.
19 (6) As applicable, the potential role of existing State longitudinal data systems.
20
21 PROFESSIONAL DEVELOPMENT SUPPORT FOR TEACHERS OF CHILDREN
22 WITH DISABILITIES AGES THREE THROUGH FIVE
23 SECTION 7.12. The Department of Public Instruction shall use funds received
24 pursuant to section 619 of Part B of the Individuals with Disabilities Education Improvement Act
25 (IDEA), 20 U.S.C. § 1400, et seq., in Budget Code 13510, Fund Code 1400 to add a minimum
26 of 13 full-time employee (FTE) positions to provide professional development and support to
27 teachers in public schools who work with students with disabilities ages three through five,
28 including preschool and kindergarten teachers.
29
30 VIRTUAL EDUCATION, REMOTE ACADEMIES, AND VIRTUAL CHARTER
31 SCHOOL EDUCATION
32 SECTION 7.13.(a) G.S. 115C-84.3(c) reads as rewritten:
33 "(c) Except as provided in Part 3A of Article 16 of this Chapter or subsection (b) of this
34 section, a public school unit shall not use remote instruction to satisfy the minimum required
35 number of instructional days or hours for the school calendar."
36 SECTION 7.13.(b) Section 3(i) of S.L. 2021-130 reads as rewritten:
37 "SECTION 3.(i) This section is effective when it becomes law and applies to beginning
38 with the 2021-2022 school year. This section is repealed June 30, 2022."
39 SECTION 7.13.(c) Article 16 of Chapter 115C of the General Statutes is amended
40 by adding a new Part to read:
41 "Part 3A. Remote Academies.
42 "§ 115C-234. Remote academies.
43 (a) A local school administrative unit may apply to the State Board of Education for
44 approval of remote academies that meet the requirements of this Part.
45 (b) A remote academy is a public school whose instruction is provided primarily online
46 through a combination of synchronous and asynchronous instruction delivered to students in a
47 remote location outside of the school facility. A remote academy may include any combination
48 of grade levels.
49 (c) Notwithstanding G.S. 115C-84.3, a remote academy approved by the State Board of
50 Education may satisfy the minimum required number of instructional days or hours for the school
51 calendar through remote instruction.

1 "§ 115C-234.5. Remote academy enrollment.
2 (a) A student shall not be assigned to attend a remote academy without parental consent.
3 A local school administrative unit shall require an application to secure parental consent prior to
4 enrollment of a student in a remote academy.
5 (b) A local school administrative unit shall identify characteristics for successful remote
6 learning and establish criteria for admittance to a remote academy and shall make that
7 information available to parents.
8 (c) A student may not be denied admission to a remote academy solely on the basis that
9 the student is a child with a disability. If a student is admitted to a remote academy, that student's
10 IEP team, as defined in G.S. 115C-106.3, or section 504 team, 29 U.S.C. § 794, must plan for a
11 successful student entry and accommodations necessary to provide for a free appropriate public
12 education in the remote academy.
13 (d) A local school administrative unit may reassign a student to an in-person school
14 within that unit during the school year if the local board of education determines that an in-person
15 school would better ensure academic success for that student. The local board of education may
16 delegate this authority to the superintendent.
17 (e) A remote academy in a local school administrative unit shall comply with the
18 requirements of G.S. 115C-301 with regards to class size.
19 "§ 115C-234.10. Remote academy requirements.
20 (a) Except as provided in this Part, a remote academy shall meet the same requirements
21 required in this Chapter as other public schools governed by local boards of education.
22 (b) A remote academy shall provide all of the following to enrolled students:
23 (1) Any hardware and software needed to participate in the remote academy.
24 Students may not be charged rental fees but may be charged damage fees for
25 abuse or loss of hardware or software under rules adopted by the State Board
26 of Education.
27 (2) Access to a learning management platform that enables monitoring of student
28 performance and school-owned devices, as well as allows video conferencing
29 and supervised text-based chat for synchronous communication.
30 (3) Access to the internet that is available during instructional hours, evenings,
31 and weekends.
32 (4) Technical support that is available during instructional hours.
33 (5) For children with an individualized education program (IEP), as defined in
34 G.S. 115C-106.3, or a section 504 plan, 29 U.S.C. § 794, adaptive or assistive
35 devices, transportation, and in-person services as required by that program or
36 plan.
37 (c) A remote academy may require students to attend in person to fulfill State-mandated
38 student assessments or graduation requirements. A remote academy may conduct optional
39 in-person meetings between students and instructors or parents and instructors at a local school
40 administrative unit facility.
41 (d) The employees of a remote academy shall meet the same licensure and evaluation
42 requirements as required for in-person employees of the local school administrative unit. The
43 remote academy shall ensure sufficient digital teaching and learning support staff, including, at
44 a minimum, the following:
45 (1) An instructional technology facilitator.
46 (2) A school library media coordinator.
47 (3) A data manager.
48 (4) Sufficient remote technicians to ensure technical support throughout the
49 instructional day for staff and students.
50 "§ 115C-234.15. Remote academy approval process.

1 (a) Each local board of education seeking to offer a remote academy shall submit to the
2 State Board of Education for approval a plan that provides for the following:
3 (1) The range of grades for which the remote academy will offer courses.
4 (2) The method by which the remote academy will monitor calendar compliance,
5 enrollment, daily attendance, course credit accrual, progress toward
6 graduation, and course completion.
7 (3) Hardware, software, and learning management platforms that support online
8 learning.
9 (4) The measures used to ensure that both synchronous and asynchronous remote
10 instruction time, practice, and application components support learning
11 growth that continues towards mastery of the standard course of study.
12 (5) The professional development that will be provided to those teaching in the
13 remote academy related to the pedagogy of providing remote instruction.
14 (6) The identified characteristics for successful remote learning and criteria for
15 admission to the remote academy. The governing body shall identify the
16 means by which information will be communicated to the parents and legal
17 guardians of prospective applicants and current enrollees about the remote
18 academy and those characteristics and criteria to allow for informed decisions
19 about enrollment.
20 (7) Any school nutrition services or transportation services that will be provided
21 to students.
22 (b) The State Board of Education shall review and approve a plan submitted by a local
23 board of education for the creation of a remote academy that meets the requirements established
24 in this Part for a term of five years.
25 "§ 115C-234.20. Operation and renewal of remote academies.
26 (a) Each approved remote academy shall adhere to the plan submitted to and approved
27 by the State Board of Education unless the local board of education obtains in writing approval
28 for plan modifications from the State Board of Education.
29 (b) Each approved remote academy shall receive a school code. A remote academy in a
30 local school administrative unit with less than 100 students in final average daily membership is
31 not entitled to 12 months of employment for a principal.
32 (c) A local board of education may apply for renewal of approval as a remote academy
33 for additional terms of five years. The State Board shall consider compliance with the
34 requirements of this Part and success of the remote academy in the prior five years in determining
35 whether to approve a request for renewal of a remote academy.
36 "§ 115C-234.25. Evaluation.
37 The State Board of Education shall evaluate the success of remote academies approved under
38 this Part. Success shall be measured by school performance scores and grades, retention rates,
39 attendance rates, and, for grades nine through 12, high school completion and dropout rates. The
40 Board shall report by November 15 of each year to the Joint Legislative Education Oversight
41 Committee on the evaluation of these schools and on any recommended statutory changes."
42 SECTION 7.13.(d) The State Board of Education shall make the first evaluation
43 report required by G.S. 115C-234.25, as enacted by this section, by November 15, 2024.
44 SECTION 7.13.(e) Section 3B(c) of S.L. 2021-130 is repealed. Notwithstanding
45 G.S. 115C-84.3, as amended by this section, or G.S. 115C-234, as enacted by this section, a
46 public school unit assigned a school code to operate a school with virtual instruction as the
47 primary means of instruction as of May 1, 2021, may continue to operate that school for the
48 2022-2023 school year. A public school unit that submitted a virtual instruction plan for the
49 2021-2022 school year to the Department of Public Instruction may continue to provide virtual
50 instruction in accordance with that plan for the 2022-2023 school year.

1 SECTION 7.13.(f) Notwithstanding G.S. 115C-84.3, as amended by this section, a
2 charter school that submitted a virtual instruction plan for the 2021-2022 school year to the
3 Department of Public Instruction may continue to provide virtual instruction in accordance with
4 that plan for the 2023-2024 school year.
5 SECTION 7.13.(g) Section 8.35 of S.L. 2014-100, as amended by Section 8.13 of
6 S.L. 2016-94 and Section 7.13 of S.L. 2018-5, reads as rewritten:
7 "SECTION 8.35.(a) Notwithstanding G.S. 115C-218.5 or any other provision of law to the
8 contrary, the State Board of Education shall establish a pilot program to authorize the operation
9 of two virtual charter schools serving students in kindergarten through twelfth grade. The State
10 Board shall establish an application process to allow student enrollment in the selected virtual
11 charter schools beginning with the 2015-2016 school year. A virtual charter school participating
12 in the pilot may serve any grade span of students in kindergarten through twelfth grade. The pilot
13 program shall continue for a period of eight 10 school years and shall end with the 2022-2023
14 2024-2025 school year.
15 …."
16 SECTION 7.13.(h) A virtual charter school that participated in the pilot program
17 authorized by Section 8.35 of S.L. 2014-100, as amended by Section 8.13 of S.L. 2016-94,
18 Section 7.13 of S.L. 2018-5, and this section, shall be eligible to apply to the State Board of
19 Education for a charter renewal as provided in G.S. 115C-218.6.
20 SECTION 7.13.(i) Except as otherwise provided, this section is effective when it
21 becomes law and applies beginning with the 2022-2023 school year. Subsection (c) of this section
22 applies beginning with the 2023-2024 school year.
23
24 ALLOW GUILFORD COUNTY SCHOOLS LONG-TERM LEASE FOR COMMUNITY
25 EDUCATION CENTER
26 SECTION 7.14.(a) Notwithstanding G.S. 146-29 or any other provision of law to
27 the contrary, for the purpose of constructing a Guilford County Community Education Center
28 pursuant to the Guilford County Schools' (GCS) Elementary and Secondary School Emergency
29 Relief Fund (ESSER) spending plan, as approved by the Department of Public Instruction, the
30 Department of Administration may enter into a lease of 50 years or greater with Guilford County
31 Schools to locate the community education center in Gateway Research Park in order to comply
32 with requirements for the spending of direct federal grant funds under 34 C.F.R. § 75-603.
33 SECTION 7.14.(b) Notwithstanding G.S. 146-29 or any other provision of law to
34 the contrary, the Department of Administration may enter into a lease of 50 years or greater with
35 a private development which will complement and align with the Guilford County Community
36 Education Center referenced in subsection (a) of this section to promote and enhance economic
37 and community development in Guilford County. The private development must be located on
38 the same property as the Guilford County Community Education Center within the Gateway
39 Research Park.
40
41 PART VII-A. COMPENSATION OF PUBLIC SCHOOL EMPLOYEES
42
43 TEACHER SALARY SCHEDULE
44 SECTION 7A.1.(a) The following monthly teacher salary schedule shall apply for
45 the 2022-2023 fiscal year to licensed personnel of the public schools who are classified as
46 teachers. The salary schedule is based on years of teaching experience.
47 2022-2023 Teacher Monthly Salary Schedule
48 Years of Experience "A" Teachers
49 0 $3,700
50 1 $3,800
51 2 $3,900

1 3 $4,000
2 4 $4,100
3 5 $4,200
4 6 $4,300
5 7 $4,400
6 8 $4,500
7 9 $4,600
8 10 $4,700
9 11 $4,800
10 12 $4,900
11 13 $5,000
12 14 $5,100
13 15-24 $5,200
14 25+ $5,400
15 SECTION 7A.1.(b) Salary Supplements for Teachers Paid on This Salary Schedule.
16 –
17 (1) Licensed teachers who have NBPTS certification shall receive a salary
18 supplement each month of twelve percent (12%) of their monthly salary on
19 the "A" salary schedule.
20 (2) Licensed teachers who are classified as "M" teachers shall receive a salary
21 supplement each month of ten percent (10%) of their monthly salary on the
22 "A" salary schedule.
23 (3) Licensed teachers with licensure based on academic preparation at the
24 six-year degree level shall receive a salary supplement of one hundred
25 twenty-six dollars ($126.00) per month in addition to the supplement provided
26 to them as "M" teachers.
27 (4) Licensed teachers with licensure based on academic preparation at the
28 doctoral degree level shall receive a salary supplement of two hundred
29 fifty-three dollars ($253.00) per month in addition to the supplement provided
30 to them as "M" teachers.
31 (5) Certified school nurses shall receive a salary supplement each month of ten
32 percent (10%) of their monthly salary on the "A" salary schedule.
33 (6) School counselors who are licensed as counselors at the master's degree level
34 or higher shall receive a salary supplement each month of one hundred dollars
35 ($100.00).
36 SECTION 7A.1.(c) For school psychologists, school speech pathologists who are
37 licensed as speech pathologists at the master's degree level or higher, and school audiologists
38 who are licensed as audiologists at the master's degree level or higher, the following shall apply:
39 (1) The first step of the salary schedule shall be equivalent to the sixth step of the
40 "A" salary schedule.
41 (2) These employees shall receive the following salary supplements each month:
42 a. Ten percent (10%) of their monthly salary, excluding the supplement
43 provided pursuant to sub-subdivision b. of this subdivision.
44 b. Three hundred fifty dollars ($350.00).
45 (3) These employees are eligible to receive salary supplements equivalent to those
46 of teachers for academic preparation at the six-year degree level or the
47 doctoral degree level.
48 (4) The twenty-sixth step of the salary schedule shall be seven and one-half
49 percent (7.5%) higher than the salary received by these same employees on
50 the twenty-fifth step of the salary schedule.

1 SECTION 7A.1.(d) Beginning with the 2014-2015 fiscal year, in lieu of providing
2 annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those
3 longevity payments are included in the monthly amounts under the teacher salary schedule.
4 SECTION 7A.1.(e) A teacher compensated in accordance with this salary schedule
5 for the 2022-2023 school year shall receive an amount equal to the greater of the following:
6 (1) The applicable amount on the salary schedule for the applicable school year.
7 (2) For teachers who were eligible for longevity for the 2013-2014 school year,
8 the sum of the following:
9 a. The salary the teacher received in the 2013-2014 school year pursuant
10 to Section 35.11 of S.L. 2013-360.
11 b. The longevity that the teacher would have received under the longevity
12 system in effect for the 2013-2014 school year provided in Section
13 35.11 of S.L. 2013-360 based on the teacher's current years of service.
14 c. The annual bonus provided in Section 9.1(e) of S.L. 2014-100.
15 (3) For teachers who were not eligible for longevity for the 2013-2014 school
16 year, the sum of the salary and annual bonus the teacher received in the
17 2014-2015 school year pursuant to Section 9.1 of S.L. 2014-100.
18 SECTION 7A.1.(f) As used in this section, the term "teacher" shall also include
19 instructional support personnel.
20
21 BONUSES FOR TEACHERS BASED ON STUDENT GROWTH
22 SECTION 7A.2.(a) Establish Growth-Based Teacher Bonus Program. – The State
23 Board of Education shall establish a teacher bonus program based on student growth for the
24 2022-2023 fiscal year to reward teacher performance and encourage student learning and
25 improvement. To attain this goal, the Department of Public Instruction shall administer bonus
26 pay to qualifying teachers whose salaries are supported from State funds in January of 2023,
27 based on data from the 2021-2022 school year, in accordance with this section.
28 SECTION 7A.2.(b) Definitions. – For purposes of this section, the following
29 definitions shall apply:
30 (1) Eligible teacher. – A teacher who meets at least one of the following criteria:
31 a. Is employed by, or retired having last held a position at, a qualifying
32 public school unit and meets one of the following criteria:
33 1. Is in the top twenty-five percent (25%) of teachers in the State
34 according to the EVAAS student growth index score for third
35 grade reading from the previous school year.
37 according to the EVAAS student growth index score for fourth
38 or fifth grade reading from the previous school year.
40 according to the EVAAS student growth index score for fourth,
41 fifth, sixth, seventh, or eighth grade mathematics from the
42 previous school year.
43 b. Is employed by, or retired having last held a position at, a local school
44 administrative unit and meets one of the following criteria:
45 1. Is in the top twenty-five percent (25%) of teachers in the
46 teacher's respective local school administrative unit according
47 to the EVAAS student growth index score for third grade
48 reading from the previous school year.

1 to the EVAAS student growth index score for fourth or fifth
2 grade reading from the previous school year.
5 to the EVAAS student growth index score for fourth, fifth,
6 sixth, seventh, or eighth grade mathematics from the previous
7 school year.
8 c. Was employed by a local school administrative unit that employed in
9 the previous school year three or fewer total teachers in that teacher's
10 grade level as long as the teacher has an EVAAS student growth index
11 score from the previous school year of exceeded expected growth in
12 one of the following subject areas:
13 1. Third grade reading.
14 2. Fourth or fifth grade reading.
15 3. Fourth, fifth, sixth, seventh, or eighth grade mathematics.
16 (2) EVAAS. – The Education Value-Added Assessment System.
17 (3) Qualifying public school unit. – Any of the following:
18 a. A local school administrative unit.
19 b. A charter school.
20 c. A regional school.
21 d. A school providing elementary or secondary instruction operated by
22 the State Board of Education under Article 7A of Chapter 115C of the
23 General Statutes.
24 e. A school providing elementary or secondary instruction operated by
25 The University of North Carolina under Article 29A of Chapter 116 of
26 the General Statutes.
27 (4) Qualifying teacher. – An eligible teacher who meets one of the following
28 criteria:
29 a. Remains employed teaching in the same qualifying public school unit,
30 or, if an eligible advanced course teacher is only employed by the
31 North Carolina Virtual Public School program, remains employed
32 teaching in that program, at least from the school year the data is
33 collected until January 1 of the corresponding school year that the
34 bonus is paid.
35 b. Retired, between the last day of the school year in which the data is
36 collected and January 1 of the corresponding school year in which the
37 bonus is paid, after attaining one of the following:
38 1. The age of at least 65 with five years of creditable service.
39 2. The age of at least 60 with 25 years of creditable service.
40 3. Thirty years of creditable service.
41 SECTION 7A.2.(c) Statewide Growth Bonuses. – Of the funds appropriated in this
42 act for the program, bonuses shall be provided to qualifying teachers who are eligible teachers
43 under sub-subdivision a. of subdivision (1) of subsection (b) of this section, as follows:
44 (1) The sum of five million dollars ($5,000,000) shall be allocated for bonuses to
45 eligible teachers under sub-sub-subdivision a.1. of subdivision (1) of
46 subsection (b) of this section. These funds shall be distributed equally among
47 qualifying teachers.
48 (2) A bonus in the amount of two thousand dollars ($2,000) shall be awarded to
49 each qualifying teacher who is an eligible teacher under sub-sub-subdivision
50 a.2. of subdivision (1) of subsection (b) of this section.

3 a.3. of subdivision (1) of subsection (b) of this section.
4 SECTION 7A.2.(d) Local Growth Bonuses. – Of the funds appropriated in this act
5 for the program, bonuses shall be provided to eligible teachers under sub-subdivisions b. and c.
6 of subdivision (1) of subsection (b) of this section, as follows:
7 (1) The sum of five million dollars ($5,000,000) shall be allocated for bonuses to
8 eligible EVAAS teachers under sub-sub-subdivisions b.1. and c.1. of
9 subdivision (1) of subsection (b) of this section. These funds shall be divided
10 proportionally based on average daily membership in third grade for each
11 local school administrative unit and then distributed equally among qualifying
12 third grade reading teachers in each local school administrative unit.
15 b.2. or c.2. of subdivision (1) of subsection (b) of this section.
18 b.3. or c.3. of subdivision (1) of subsection (b) of this section.
19 SECTION 7A.2.(e) Limitations and Other Criteria. – The following additional
20 limitations and other criteria shall apply to the program:
21 (1) Bonus funds awarded to a teacher pursuant to subdivision (c)(1) and
22 subdivision (d)(1) of this section shall not exceed three thousand five hundred
23 dollars ($3,500) per subdivision in any given school year.
24 (2) A qualifying teacher who is an eligible teacher under sub-sub-subdivision a.1.,
25 b.1., or c.1. of subdivision (1) of subsection (b) of this section may receive a
26 bonus under both subdivision (c)(1) and subdivision (d)(1) of this section but
27 shall not receive more than seven thousand dollars ($7,000) pursuant to
28 subdivisions (c)(1) and (d)(1) of this section in any given school year.
32 shall not receive more than two bonuses pursuant to subdivisions (c)(2) and
33 (d)(2) of this section in any given school year.
37 shall not receive more than two bonuses pursuant to subdivisions (c)(3) and
38 (d)(3) of this section in any given school year.
39 SECTION 7A.2.(f) Bonuses Not Compensation. – Bonuses awarded to a teacher
40 pursuant to this section shall be in addition to any regular wage or other bonus the teacher receives
41 or is scheduled to receive. Notwithstanding G.S. 135-1(7a), the bonuses awarded under this
42 section are not compensation under Article 1 of Chapter 135 of the General Statutes, Retirement
43 System for Teachers and State Employees.
44 SECTION 7A.2.(g) Study and Report. – The State Board of Education shall study
45 the effect of the program on teacher performance and retention. The State Board shall report the
46 results of its findings and the amount of bonuses awarded to the President Pro Tempore of the
47 Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight
48 Committee, and the Fiscal Research Division by March 15, 2023. The report shall include, at a
49 minimum, the following information:

1 (1) Average bonus amount awarded to each qualifying teacher who is an eligible
2 teacher under sub-sub-subdivision a.1., b.1., or c.1. of subdivision (1) of
3 subsection (b) of this section.
4 (2) The percentage of teachers who received a bonus pursuant to this section and
5 were eligible to receive a bonus for teaching in the same grade level in both
6 January 2019 and January 2020 pursuant to one of the following programs:
7 a. The Third Grade Read to Achieve Teacher Bonus Program provided
8 in Section 8.8C of S.L. 2017-57, as amended by Section 2.10 of S.L.
9 2017-97 and Section 8.10 of S.L. 2018-5.
10 b. The Fourth and Fifth Grade Reading Teacher Bonus Program provided
11 in Section 8.8D of S.L. 2017-57, as amended by Section 8.11 of S.L.
12 2018-5.
13 c. The Fourth to Eighth Grade Math Teacher Bonus Program provided
14 in Section 8.8E of S.L. 2017-57, as amended by Section 8.12 of S.L.
15 2018-5.
17 received a bonus for teaching in the same grade level in either January 2019
18 or January 2020 pursuant to one of the programs listed in sub-subdivision a.,
19 b., or c. of subdivision (2) of this subsection.
21 received a bonus for teaching in the same grade level in both January 2019
22 and January 2020 pursuant to one of the programs listed in sub-subdivision a.,
23 b., or c. of subdivision (2) of this subsection.
24 (5) The statistical relationship between a teacher receiving a bonus in January
25 2023 pursuant to this section and receiving a bonus pursuant to a predecessor
26 bonus program in January 2019 and January 2020. For purposes of this
27 subdivision, the following are predecessor programs:
28 a. The Third Grade Read to Achieve Teacher Bonus Program is the
29 predecessor program to bonuses awarded pursuant to subdivision
30 (c)(1) and subdivision (d)(1) of this section.
31 b. The Fourth and Fifth Grade Reading Teacher Bonus Program is the
34 c. The Fourth to Eighth Grade Math Teacher Bonus Program is the
37 (6) The distribution of statewide and local growth bonuses awarded pursuant to
38 this section as among qualifying public school units and, where applicable,
39 schools within those units.
40
41 SMALL COUNTY AND LOW WEALTH SIGNING BONUS FOR TEACHERS
42 SECTION 7A.3.(a) Definitions. – For purposes of this section, the following
43 definitions shall apply:
44 (1) Eligible employee. – A person who meets all of the following criteria:
45 a. Accepts employment as a teacher with an eligible employer for the
47 b. Was not employed by the eligible employer identified in
48 sub-subdivision a. of this subdivision in the 2021-2022 fiscal year.
49 c. Is employed by the eligible employer identified in sub-subdivision a.
50 of this subdivision as of October 1, 2022.

1 (2) Eligible employer. – The governing board of a local school administrative unit
2 that receives at least one of the following in the 2022-2023 fiscal year:
3 a. Small county school system supplemental funding.
4 b. Supplemental funding for local school administrative units in
5 low-wealth counties.
6 (3) Local funds. – Matching funds provided by an eligible employer to enable an
7 eligible employee to qualify for the signing bonus program established by this
8 section.
9 (4) Teacher. – Teachers and instructional support personnel.
10 SECTION 7A.3.(b) Signing Bonus Program. – For the 2022-2023 fiscal year, the
11 Department of Public Instruction shall establish and administer a signing bonus program for
12 teachers. Signing bonuses shall be provided to all eligible employees who are employed by an
13 eligible employer as long as they are matched on the basis of one dollar ($1.00) in State funds
14 for every one dollar ($1.00) in local funds, up to one thousand dollars ($1,000) in State funds.
15 SECTION 7A.3.(c) Limited Exclusion from Future Signing Bonuses. – A teacher
16 who receives a signing bonus pursuant to this section is ineligible to receive another signing
17 bonus pursuant to this section or a similar enactment of the General Assembly until July 1, 2025,
18 at the earliest. This section shall not apply to any legislatively mandated bonuses received by
19 teachers that are not signing bonuses.
20 SECTION 7A.3.(d) Bonuses as Additions. – The bonuses awarded pursuant to this
21 section shall be in addition to any regular wage or other bonus a teacher receives or is scheduled
22 to receive.
23 SECTION 7A.3.(e) Not for Retirement. – Notwithstanding G.S. 135-1(7a), the
24 bonuses awarded pursuant to this section are not compensation under Article 1 of Chapter 135
25 of the General Statutes, Retirement System for Teachers and State Employees.
26
27 PRINCIPAL SALARY SCHEDULE
28 SECTION 7A.4.(a) The following annual salary schedule for principals shall apply
29 for the 2022-2023 fiscal year, beginning July 1, 2022:
30 2022-2023 Principal Annual Salary Schedule
31 Avg. Daily Membership Base Met Growth Exceeded Growth
32 0-200 $72,621 $79,883 $87,145
33 201-400 $76,252 $83,877 $91,502
34 401-700 $79,883 $87,871 $95,860
35 701-1,000 $83,514 $91,865 $100,217
36 1,001-1,600 $87,145 $95,860 $104,574
37 1,601+ $90,776 $99,854 $108,931
38 A principal's placement on the salary schedule shall be determined according to the
39 average daily membership of the school supervised by the principal, as described in subsection
40 (b) of this section, and the school growth scores, calculated pursuant to G.S. 115C-83.15(c), for
41 each school the principal supervised in one or more prior school years, as described in subsection
42 (c) of this section, regardless of a break in service, and provided the principal supervised each
43 school as a principal for at least a majority of the school year, as follows:
44 (1) A principal shall be paid according to the Exceeded Growth column of the
45 schedule as follows:
46 a. Between July 1, 2022, and December 31, 2022, if the school growth
47 scores show the school or schools exceeded expected growth in at least
48 two of the prior three school years.
49 b. Between January 1, 2023, and June 30, 2023, if the school growth
50 score shows the school exceeded expected growth.

1 (2) A principal shall be paid according to the Met Growth column of the schedule
2 as follows:
3 a. Between July 1, 2022, and December 31, 2022, if any of the following
4 apply:
5 1. The school growth scores show the school or schools met
6 expected growth in at least two of the prior three school years.
7 2. The school growth scores show the school or schools met
8 expected growth in at least one of the prior three school years
9 and exceeded expected growth in one of the prior three school
10 years.
11 3. The principal supervised a school in at least two of the prior
12 three school years that was not eligible to receive a school
13 growth score.
15 score shows the school met expected growth or the principal
16 supervised a school in the prior school year that was not eligible to
17 receive a school growth score.
18 (3) A principal shall be paid according to the Base column, as follows:
19 a. Between July 1, 2022, and December 31, 2022, if either of the
20 following applies:
21 1. The school growth scores show the school or schools did not
22 meet expected growth in at least two of the prior three years.
23 2. The principal has not supervised any school as a principal for
24 a majority of the school year in at least two of the prior three
25 school years.
27 score shows the school did not meet expected growth or the principal
28 has not supervised any school as a principal for a majority of the prior
29 school year.
30 SECTION 7A.4.(b) For purposes of determining the average daily membership of a
31 principal's school, the following amounts shall be used during the following time periods:
32 (1) Between July 1, 2022, and December 31, 2022, the average daily membership
33 for the school from the 2021-2022 school year. If the school did not have an
34 average daily membership in the 2021-2022 school year, the projected average
35 daily membership for the school for the 2022-2023 school year.
36 (2) Between January 1, 2023, and June 30, 2023, the average daily membership
37 for the school for the 2022-2023 school year.
38 SECTION 7A.4.(c) For purposes of determining the school growth scores for each
39 school the principal supervised in one or more prior school years, the following school growth
40 scores shall be used during the following time periods:
41 (1) Between July 1, 2022, and December 31, 2022, the school growth scores from
42 the three most recent available school years, up to the 2018-2019 school year.
43 (2) Between January 1, 2023, and June 30, 2023, the school growth score from
44 the 2021-2022 school year.
46 annual longevity payments to principals paid on the principal salary schedule, the amounts of
47 those longevity payments are included in the annual amounts under the principal salary schedule.
48 SECTION 7A.4.(e) A principal compensated in accordance with this section for the
49 2022-2023 fiscal year shall receive an amount equal to the greater of the following:
50 (1) The applicable amount on the salary schedule for the applicable year.

1 (2) For principals who were eligible for longevity in the 2016-2017 fiscal year,
2 the sum of the following:
3 a. The salary the principal received in the 2016-2017 fiscal year pursuant
4 to Section 9.1 or Section 9.2 of S.L. 2016-94.
5 b. The longevity that the principal would have received as provided for
6 State employees under the North Carolina Human Resources Act for
7 the 2016-2017 fiscal year based on the principal's current years of
8 service.
9 (3) For principals who were not eligible for longevity in the 2016-2017 fiscal
10 year, the salary the principal received in the 2016-2017 fiscal year pursuant to
11 Section 9.1 or Section 9.2 of S.L. 2016-94.
12
13 BONUSES FOR PRINCIPALS
14 SECTION 7A.5.(a) The Department of Public Instruction shall administer a bonus
15 in the 2022-2023 fiscal year to any principal who supervised a school as a principal for a majority
16 of the previous school year if that school was in the top fifty percent (50%) of school growth in
17 the State during the previous school year, calculated by the State Board pursuant to
18 G.S. 115C-83.15(c), as follows:
19 2022-2023 Principal Bonus Schedule
20 Statewide Growth Percentage Bonus
21 Top 5% $15,000
22 Top 10% $10,000
23 Top 15% $5,000
24 Top 20% $2,500
25 Top 50% $1,000
26 A principal shall receive no more than one bonus pursuant to this subsection. The
27 bonus shall be paid at the highest amount for which the principal qualifies.
28 SECTION 7A.5.(b) The bonus awarded pursuant to this section shall be in addition
29 to any regular wage or other bonus the principal receives or is scheduled to receive.
30 SECTION 7A.5.(c) Notwithstanding G.S. 135-1(7a), the bonuses awarded pursuant
31 to this section are not compensation under Article 1 of Chapter 135 of the General Statutes,
32 Retirement System for Teachers and State Employees.
33 SECTION 7A.5.(d) It is the intent of the General Assembly that funds provided
34 pursuant to this section will supplement principal compensation and not supplant local funds.
35 SECTION 7A.5.(e) The bonus provided pursuant to this section shall be paid no
36 later than October 31, 2022, to qualifying principals employed as of October 1, 2022.
37
38 ASSISTANT PRINCIPAL SALARIES
39 SECTION 7A.6.(a) For the 2022-2023 fiscal year, beginning July 1, 2022, assistant
40 principals shall receive a monthly salary based on the salary schedule for teachers who are
41 classified as "A" teachers plus nineteen percent (19%). An assistant principal shall be placed on
42 the step on the salary schedule that reflects the total number of years of experience as a certified
43 employee of the public schools. For purposes of this section, an administrator with a one-year
44 provisional assistant principal's certificate shall be considered equivalent to an assistant principal.
45 SECTION 7A.6.(b) Assistant principals with certification based on academic
46 preparation at the six-year degree level shall be paid a salary supplement of one hundred
47 twenty-six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary
48 supplement of two hundred fifty-three dollars ($253.00) per month.
49 SECTION 7A.6.(c) Participants in an approved full-time master's in school
50 administration program shall receive up to a 10-month stipend during the internship period of the
51 master's program. The stipend shall be at the beginning salary of an assistant principal or, for a

1 teacher who becomes an intern, at least as much as that person would earn as a teacher on the
2 teacher salary schedule. The North Carolina Principal Fellows and Transforming Principal
3 Preparation Program or the school of education where the intern participates in a full-time
4 master's in school administration program shall supply the Department of Public Instruction with
5 certification of eligible full-time interns.
7 annual longevity payments to assistant principals on the assistant principal salary schedule, the
8 amounts of those longevity payments are included in the monthly amounts provided to assistant
9 principals pursuant to subsection (a) of this section.
10 SECTION 7A.6.(e) An assistant principal compensated in accordance with this
11 section for the 2022-2023 fiscal year shall receive an amount equal to the greater of the following:
12 (1) The applicable amount on the salary schedule for the applicable year.
13 (2) For assistant principals who were eligible for longevity in the 2016-2017 fiscal
14 year, the sum of the following:
15 a. The salary the assistant principal received in the 2016-2017 fiscal year
16 pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94.
17 b. The longevity that the assistant principal would have received as
18 provided for State employees under the North Carolina Human
19 Resources Act for the 2016-2017 fiscal year based on the assistant
20 principal's current years of service.
21 (3) For assistant principals who were not eligible for longevity in the 2016-2017
22 fiscal year, the salary the assistant principal received in the 2016-2017 fiscal
23 year pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94.
24
25 CENTRAL OFFICE SALARIES
26 SECTION 7A.7.(a) For the 2022-2023 fiscal year, beginning July 1, 2022, the
27 annual salary for superintendents, assistant superintendents, associate superintendents,
28 directors/coordinators, supervisors, and finance officers, whose salaries are supported from State
29 funds, shall be increased by four percent (4%).
30 SECTION 7A.7.(b) The monthly salary maximums that follow apply to assistant
31 superintendents, associate superintendents, directors/coordinators, supervisors, and finance
32 officers for the 2022-2023 fiscal year, beginning July 1, 2022:
33 2022-2023 Fiscal Year
34 Maximum
35 School Administrator I $7,069
36 School Administrator II $7,490
37 School Administrator III $7,937
38 School Administrator IV $8,247
39 School Administrator V $8,576
40 School Administrator VI $9,085
41 School Administrator VII $9,447
42 The local board of education shall determine the appropriate category and placement
43 for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or
44 finance officer within the maximums and within funds appropriated by the General Assembly
45 for central office administrators and superintendents. The category in which an employee is
46 placed shall be included in the contract of any employee.
47 SECTION 7A.7.(c) The monthly salary maximums that follow apply to
48 superintendents for the 2022-2023 fiscal year, beginning July 1, 2022:
49 2022-2023 Fiscal Year
50 Maximum
51 Superintendent I $10,014

1 Superintendent II $10,611
2 Superintendent III $11,248
3 Superintendent IV $11,924
4 Superintendent V $12,641
5 The local board of education shall determine the appropriate category and placement
6 for the superintendent based on the average daily membership of the local school administrative
7 unit and within funds appropriated by the General Assembly for central office administrators and
8 superintendents.
9 SECTION 7A.7.(d) Longevity pay for superintendents, assistant superintendents,
10 associate superintendents, directors/coordinators, supervisors, and finance officers shall be as
11 provided for State employees under the North Carolina Human Resources Act.
12 SECTION 7A.7.(e) Superintendents, assistant superintendents, associate
13 superintendents, directors/coordinators, supervisors, and finance officers with certification based
14 on academic preparation at the six-year degree level shall receive a salary supplement of one
15 hundred twenty-six dollars ($126.00) per month in addition to the compensation provided
16 pursuant to this section. Superintendents, assistant superintendents, associate superintendents,
17 directors/coordinators, supervisors, and finance officers with certification based on academic
18 preparation at the doctoral degree level shall receive a salary supplement of two hundred
19 fifty-three dollars ($253.00) per month in addition to the compensation provided for under this
20 section.
21 SECTION 7A.7.(f) The State Board of Education shall not permit local school
22 administrative units to transfer State funds from other funding categories for salaries for public
23 school central office administrators.
24
25 NONCERTIFIED PERSONNEL SALARIES
26 SECTION 7A.8.(a) Beginning with the 2022-2023 fiscal year, the State Board of
27 Education shall increase the minimum of all salary grades and ranges it maintains for noncertified
28 public school employees, as necessary, to achieve a minimum hourly compensation rate of fifteen
29 dollars ($15.00) per hour.
30 SECTION 7A.8.(b) For the 2022-2023 fiscal year, beginning July 1, 2022, the
31 annual salary for noncertified public school employees whose salaries are supported from State
32 funds shall be increased as follows:
33 (1) For permanent, full-time employees on a 12-month contract, by the greater of
34 the following:
35 a. Four percent (4%).
36 b. An amount necessary to increase the minimum hourly compensation
37 rate of the employee to fifteen dollars ($15.00) per hour pursuant to
38 subsection (a) of this section.
39 (2) For the following employees, by an equitable amount based on the amounts
40 specified in subdivision (1) of this subsection:
41 a. Permanent, full-time employees on a contract for fewer than 12
42 months.
43 b. Permanent, part-time employees.
44 c. Temporary and permanent hourly employees.
45
46 EXPAND SUPPLEMENTAL FUNDS FOR TEACHER COMPENSATION
47 SECTION 7A.9.(a) Section 7A.12(b)(6) of S.L. 2021-180 reads as rewritten:
48 "(6) Eligible county. – A county that meets the following criteria:
49 a. For the 2021-2022 fiscal year, has an adjusted market value of taxable
50 real property of less than forty billion dollars ($40,000,000,000).

1 b. For the 2022-2023 fiscal year, has an adjusted market value of taxable
2 real property of less than forty-one billion four hundred million dollars
3 ($41,400,000,000).forty-three billion seven hundred million dollars
4 ($43,700,000,000)."
5 SECTION 7A.9.(b) Section 7A.12(c)(4) of S.L. 2021-180 reads as rewritten:
6 "(4) Allocation and funding cap. – The State Board shall allocate the amount
7 determined pursuant to subdivision (3) of this subsection, up to a maximum
8 of four thousand two hundred fifty dollars ($4,250) per State-funded teacher,
9 subsection to each eligible local school administrative unit for each applicable
10 fiscal year.year, as follows:
11 a. For the 2021-2022 fiscal year, up to a maximum of four thousand two
12 hundred fifty dollars ($4,250) per State-funded teacher.
13 b. For the 2022-2023 fiscal year, up to a maximum of five thousand
14 dollars ($5,000) per State-funded teacher."
15 SECTION 7A.9.(c) This section applies to allocations of funds for the 2022-2023
16 fiscal year only.
17
18 PART VIII. THE UNIVERSITY OF NORTH CAROLINA SYSTEM
19
20 REVISE UNC ENROLLMENT CHANGE DOCUMENTATION REQUIREMENTS
21 SECTION 8.1. G.S. 116-11(9)a1. reads as rewritten:
22 "a1. The Board of Governors shall provide full documentation and
23 justification of any enrollment change funding request at the time it is
24 recommended. This documentation and justification shall include the
25 following:
26 1. If the enrollment change funding request is based in whole or
27 in part on enrollment growth, the most recent academic year's
28 actual enrollment numbers in the same format in which the
29 growth increase request is made. The actual enrollment
30 numbers shall be the actual student credit hours (SCH) or
31 full-time equivalencies (FTE).
32 2. If the enrollment change funding request is based in whole or
33 in part on one or more metrics other than enrollment growth,
34 including student performance, identification of any metric
35 used, and the portion of the funding request based on that
36 metric for each constituent institution."
37
38 REVISE WAKE FOREST INSTITUTE FOR REGENERATIVE MEDICINE REPORT
39 SECTION 8.2. Section 11.12(d) of S.L. 2013-360 reads as rewritten:
40 "SECTION 11.12.(d) Wake Forest on behalf of the Institute shall comply with the following
41 reporting requirements:
42 (1) By September 1 of each year, and more frequently as requested, report to the
43 Joint Legislative Commission on Governmental Operations, the Fiscal
44 Research Division, and the Board of Governors of The University of North
45 Carolina Joint Legislative Oversight Committee on Health and Human
46 Services on prior State fiscal year program activities, objectives, and
47 accomplishments and prior State fiscal year itemized expenditures and fund
48 sources. The annual report shall include a report of royalty revenues generated
49 from the Subject Projects.
50 (2) Provide to the Fiscal Research Division a copy of the Institute's annual audited
51 financial statement within 30 days of issuance of the statement."

1
2 RECOMMENDATIONS ON INCREASING NURSING GRADUATES
3 SECTION 8.3. No later than February 1, 2023, the Board of Governors of The
4 University of North Carolina, in collaboration with the State Board of Community Colleges, shall
5 study and provide recommendations to the Joint Legislative Education Oversight Committee and
6 the Joint Legislative Oversight Committee on Health and Human Services on methods and a
7 timeline for increasing the number of graduates from nursing programs at constituent institutions
8 of The University of North Carolina and community colleges by at least fifty percent (50%).
9
10 UNC AND ECU DENTAL SCHOOL CLINICAL OPERATIONS PERSONNEL
11 FLEXIBILITY
12 SECTION 8.4.(a) Part 3 of Article 1 of Chapter 116 of the General Statutes is
13 amended by adding a new section to read:
14 "§ 116-37.3. Personnel of Dental School Clinical Operations at the University of North
15 Carolina at Chapel Hill.
16 (a) UNC-CH Dental School Clinical Operations. – For purposes of this section, the term
17 "UNC-CH Dental School Clinical Operations" refers to a division of the Adams School of
18 Dentistry at the University of North Carolina at Chapel Hill that operates clinical programs and
19 facilities in Chapel Hill, North Carolina, and across the State for the purpose of providing medical
20 care to the general public and training dentists and other health care professionals.
21 (b) Personnel. – Employees of UNC-CH Dental School Clinical Operations shall be
22 deemed to be employees of the State and shall be subject to all provisions of State law relevant
23 thereto; provided, however, that except as to the provisions of Articles 5, 6, 7, and 14 of Chapter
24 126 of the General Statutes, the provisions of Chapter 126 of the General Statutes shall not apply
25 to employees of UNC-CH Dental School Clinical Operations, and the policies and procedures
26 governing the terms and conditions of employment of such employees shall be adopted by the
27 Board of Trustees of the University of North Carolina at Chapel Hill; provided, that with respect
28 to such employees as may be members of the faculty of the University of North Carolina at
29 Chapel Hill, no such policies and procedures may be inconsistent with policies established by, or
30 adopted pursuant to delegation from, the Board of Governors of The University of North
31 Carolina. Such policies and procedures shall be implemented on behalf of UNC-CH Dental
32 School Clinical Operations by a personnel office maintained by the University of North Carolina
33 at Chapel Hill.
34 (1) The board of trustees shall fix or approve the schedules of pay, expense
35 allowances, and other compensation, and adopt position classification plans
36 for employees of UNC-CH Dental School Clinical Operations.
37 (2) The board of trustees may adopt or provide for rules and regulations
38 concerning, but not limited to, annual leave, sick leave, special leave with full
39 pay, or with partial pay supplementing workers' compensation payments for
40 employees injured in accidents arising out of and in the course of employment,
41 working conditions, service awards, and incentive award programs, grounds
42 for dismissal, demotion, or discipline, other personnel policies, and any other
43 measures that promote the hiring and retention of capable, diligent, and
44 effective career employees. However, an employee who has achieved career
45 State employee status as defined by G.S. 126-1.1 by June 30, 2022, shall not
46 have his or her compensation reduced as a result of this subdivision. Further,
47 an employee who has achieved career State employee status as defined by
48 G.S. 126-1.1 by June 30, 2022, shall be subject to the rules regarding
49 discipline or discharge that were effective on June 30, 2022, and shall not be
50 subject to the rules regarding discipline or discharge adopted after June 30,
51 2022.

1 (3) The board of trustees may prescribe the office hours, workdays, and holidays
2 to be observed by the various offices and departments of UNC-CH Dental
3 School Clinical Operations.
4 (4) The board of trustees may establish boards, committees, or councils to conduct
5 hearings upon the appeal of employees who have been suspended, demoted,
6 otherwise disciplined, or discharged, to hear employee grievances, or to
7 undertake any other duties relating to personnel administration that the board
8 of trustees may direct.
9 The board of trustees shall submit all initial classification and pay plans, and other rules and
10 regulations adopted pursuant to subdivisions (1) through (4) of this subsection, to the Office of
11 State Human Resources for review upon adoption by the board. Any subsequent changes to these
12 plans, rules, and policies adopted by the board shall be submitted to the Office of State Human
13 Resources for review. Any comments by the Office of State Human Resources shall be submitted
14 to the Chancellor of the University of North Carolina at Chapel Hill and the President of The
15 University of North Carolina."
16 SECTION 8.4.(b) G.S. 116-40.6 reads as rewritten:
17 "§ 116-40.6. East Carolina University Medical Faculty Practice Plan.Certain Personnel of
18 East Carolina University.
19 (a) The following definitions shall apply in this section:
20 (1) ECU Dental School Clinical Operations. – A division of the School of Dental
21 Medicine at East Carolina University that operates clinical programs and
22 facilities in Greenville, North Carolina, and across the State for the purpose of
23 providing medical care to the general public and training dentists and other
24 health care professionals.
25 (2) Medical Faculty Practice Plan. – The "Medical Faculty Practice Plan", a A
26 division of the School of Medicine of East Carolina University, University
27 that operates clinical programs and facilities for the purpose of providing
28 medical care to the general public and training physicians and other health
29 care professionals.
30 (b) Personnel. – Employees of the Medical Faculty Practice Plan and ECU Dental School
31 Clinical Operations shall be deemed to be employees of the State and shall be subject to all
32 provisions of State law relevant thereto; provided, however, that except as to the provisions of
33 Articles 5, 6, 7, and 14 of Chapter 126 of the General Statutes, the provisions of Chapter 126
34 shall not apply to employees of the Medical Faculty Practice Plan, Plan or ECU Dental School
35 Clinical Operations, and the policies and procedures governing the terms and conditions of
36 employment of such employees shall be adopted by the Board of Trustees of East Carolina
37 University; provided, that with respect to such employees as may be members of the faculty of
38 East Carolina University, no such policies and procedures may be inconsistent with policies
39 established by, or adopted pursuant to delegation from, the Board of Governors of The University
40 of North Carolina. Such policies and procedures shall be implemented on behalf of the Medical
41 Faculty Practice Plan and ECU Dental School Clinical Operations by a personnel office
42 maintained by East Carolina University.
43 (1) The board of trustees shall fix or approve the schedules of pay, expense
44 allowances, and other compensation, and adopt position classification plans
45 for employees of the Medical Faculty Practice Plan.
46 (2) The board of trustees may adopt or provide for rules and regulations
47 concerning, but not limited to, annual leave, sick leave, special leave with full
48 pay, or with partial pay supplementing workers' compensation payments for
49 employees injured in accidents arising out of and in the course of employment,
50 working conditions, service awards, and incentive award programs, grounds
51 for dismissal, demotion, or discipline, other personnel policies, and any other

1 measures that promote the hiring and retention of capable, diligent, and
2 effective career employees. However, employees with the following
3 exceptions:
4 a. For employees of the Medical Faculty Practice Plan, an employee who
5 has achieved career State employee status as defined by G.S. 126-1.1
6 by October 31, 1998, shall not have his or her compensation reduced
7 as a result of this subdivision. Further, an employee who has achieved
8 career State employee status as defined by G.S. 126-1.1 by October
9 31, 1998, shall be subject to the rules regarding discipline or discharge
10 that were effective on October 31, 1998, and shall not be subject to the
11 rules regarding discipline or discharge adopted after October 31, 1998.
12 b. For employees of ECU Dental School Clinical Operations, an
13 employee who has achieved career State employee status as defined
14 by G.S. 126-1.1 by June 30, 2022, shall not have his or her
15 compensation reduced as a result of this subdivision. Further, an
16 employee who has achieved career State employee status as defined
17 by G.S. 126-1.1 by June 30, 2022, shall be subject to the rules
18 regarding discipline or discharge that were effective on June 30, 2022,
19 and shall not be subject to the rules regarding discipline or discharge
20 adopted after June 30, 2022.
21 (3) The board of trustees may prescribe the office hours, workdays, and holidays
22 to be observed by the various offices and departments of the Medical Faculty
23 Practice Plan.Plan and ECU Dental School Clinical Operations.
24 (4) The board of trustees may establish boards, committees, or councils to conduct
25 hearings upon the appeal of employees who have been suspended, demoted,
26 otherwise disciplined, or discharged, to hear employee grievances, or to
27 undertake any other duties relating to personnel administration that the board
28 of trustees may direct.
29 The board of trustees shall submit all initial classification and pay plans, and other rules and
30 regulations adopted pursuant to subdivisions (1) through (4) of this subsection to the Office of
31 State Human Resources for review upon adoption by the board. Any subsequent changes to these
32 plans, rules, and policies adopted by the board shall be submitted to the Office of State Human
33 Resources for review. Any comments by the Office of State Human Resources shall be submitted
34 to the Chancellor of East Carolina University and the President of The University of North
35 Carolina.
36 …."
37 SECTION 8.4.(c) G.S. 126-5(c8) reads as rewritten:
38 "(c8) Except as to the provisions of Articles 5, 6, 7, and 14 of this Chapter, the provisions
39 of this Chapter shall not apply to:
40 (1) Employees of the University of North Carolina Health Care System.
41 (2) Employees of the University of North Carolina Hospitals at Chapel Hill, as
42 may be provided pursuant to G.S. 116-37(a)(4).
43 (3) Employees of the clinical patient care programs of the School of Medicine of
44 the University of North Carolina at Chapel Hill as may be provided pursuant
45 to G.S. 116-37(a)(4).
46 (4) Employees of the Medical Faculty Practice Plan, a division of the School of
47 Medicine of East Carolina University.
48 (5) Employees of UNC-CH Dental School Clinical Operations, a division of the
49 Adams School of Dentistry at the University of North Carolina at Chapel Hill.
50 (6) Employees of ECU Dental School Clinical Operations, a division of the
51 School of Dental Medicine at East Carolina University."

1
2 PART VIII-A. UNIVERSITY/STATE EDUCATION ASSISTANCE AUTHORITY
3
4 INCREASE FUNDING AND ELIGIBILITY THRESHOLD FOR OPPORTUNITY
5 SCHOLARSHIPS AND FUNDING FOR PERSONAL EDUCATION STUDENT
6 ACCOUNTS
7 SECTION 8A.1.(a) G.S. 115C-562.8(b), as amended by Section 8A.3(i) of S.L.
9 "(b) The General Assembly finds that, due to the critical need in this State to provide
10 opportunity for school choice for North Carolina students, it is imperative that the State provide
11 an increase of funds for 15 years to the Opportunity Scholarship Grant Fund Reserve. Therefore,
12 there is appropriated from the General Fund to the Reserve the following amounts for each fiscal
13 year to be used for the purposes set forth in this section:
14 Fiscal Year Appropriation
15 …
16 2023-2024 $120,540,000$176,540,000
17 2024-2025 $135,540,000$191,540,000
18 2025-2026 $150,540,000$206,540,000
19 2026-2027 $165,540,000$221,540,000
20 2027-2028 $180,540,000$236,540,000
21 2028-2029 $195,540,000$251,540,000
22 2029-2030 $210,540,000$266,540,000
23 2030-2031 $225,540,000$281,540,000
24 2031-2032 $240,540,000$296,540,000
25 For the 2032-2033 fiscal year and each fiscal year thereafter, there is appropriated from the
26 General Fund to the Reserve the sum of two hundred fifty-five million five hundred forty
27 thousand dollars ($255,540,000) three hundred eleven million five hundred forty thousand
28 dollars ($311,540,000) to be used for the purposes set forth in this section. When developing the
29 base budget, as defined by G.S. 143C-1-1, for each fiscal year specified in this subsection, the
30 Director of the Budget shall include the appropriated amount specified in this subsection for that
31 fiscal year."
32 SECTION 8A.1.(b) G.S. 115C-562.1, as amended by Section 8A.3(c) of S.L.
34 "§ 115C-562.1. Definitions.
35 The following definitions apply in this Part:
36 …
37 (3) Eligible students. – A student residing in North Carolina who has not yet
38 received a high school diploma and who meets all of the following
39 requirements:
40 …
41 b. Meets one of the following criteria:
42 1. Resides in a household with an income level not in excess of
43 one hundred seventy-five percent (175%) two hundred percent
44 (200%) of the amount required for the student to qualify for the
45 federal free or reduced-price lunch program. The Authority
46 shall not count any distribution from the estate of a decedent in
47 calculating the income level of the applicant's household for
48 the purposes of determining eligibility for a scholarship under
49 this sub-sub-subdivision.
50 2. Is a child in foster care as defined in G.S. 131D-10.2. The
51 Authority shall not consider the household income of the foster

1 parent, as defined in G.S. 131D-10.2, in determining the
2 eligibility of a foster care child.
3 …."
4 SECTION 8A.1.(c) G.S. 115C-600, as enacted by Section 8A.3(l) of S.L. 2021-180,
5 reads as rewritten:
6 "§ 115C-600. Funds for Personal Education Student Accounts.
7 The General Assembly finds that due to the continued growth and ongoing need in this State
8 to provide opportunity for school choice for children with disabilities, it is imperative that the
9 State provide an increase in funds of at least one million dollars ($1,000,000) each fiscal year for
10 10 years for the Personal Education Student Accounts for Children with Disabilities Program.
11 To that end, there is appropriated from the General Fund to the Board of Governors of The
12 University of North Carolina the following amounts each fiscal year to be allocated to the
13 Authority for the Program in accordance with this Article:
14 Fiscal Year Appropriation
15 2023-2024 $32,643,166$48,943,166
16 2024-2025 $33,643,166$49,943,166
17 2025-2026 $34,643,166$50,943,166
18 2026-2027 $35,643,166$51,943,166
19 2027-2028 $36,643,166$52,943,166
20 2028-2029 $37,643,166$53,943,166
21 2029-2030 $38,643,166$54,943,166
22 2030-2031 $39,643,166$55,943,166
23 2031-2032 $40,643,166$56,943,166
24 2032-2033 and each subsequent fiscal year thereafter $41,643,166$57,943,166
25 When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year specified
26 in this section, the Director of the Budget shall include the appropriated amount specified in this
27 section for that fiscal year."
28 SECTION 8A.1.(d) Subsection (b) of this section applies beginning with
29 applications for scholarship funds for the 2023-2024 school year.
30
31 LIMIT TUITION GRANTS FOR GRADUATES OF NCSSM AND UNCSA TO
32 UNDERGRADUATE TUITION
33 SECTION 8A.2.(a) G.S. 116-209.90 reads as rewritten:
34 "§ 116-209.90. Tuition grants for graduates to attend a constituent institution.
35 (a) Within the funds available, a high school graduate from the North Carolina School of
36 Science and Mathematics (NCSSM) or the University of North Carolina School of the Arts
37 (UNCSA) in each school year who meets the following conditions shall be eligible for a tuition
38 grant awarded under this Part:
39 (1) Is a resident for tuition purposes under the criteria set forth in G.S. 116-143.1
40 and in accordance with the coordinated and centralized residency
41 determination process administered by the Authority.
42 (2) Enrolls as a full-time student in a constituent institution of The University of
43 North Carolina in the next academic year after graduation.
44 (b) Students who receive initial tuition grants as a cohort of a high school graduating class
45 of NCSSM or UNCSA shall also be eligible to apply for tuition grants for subsequent academic
46 years for up to a total of four academic years. years, provided that tuition grants are only used for
47 undergraduate tuition.
48 (b1) A student must be continuously enrolled in in an undergraduate program at a
49 constituent institution of The University of North Carolina after the award of the initial tuition
50 grant to be eligible for tuition grants in subsequent academic years. The Authority shall have the
51 discretion to waive this requirement if the student is able to demonstrate that any of the following

1 have substantially disrupted or interrupted the student's pursuit of a degree: (i) a military service
2 obligation, (ii) serious medical debilitation, (iii) a short-term or long-term disability, or (iv) other
3 extraordinary hardship.
4 (c) The amount of the tuition grant to each graduate shall be determined and distributed
5 as provided in G.S. 116-209.91."
6 SECTION 8A.2.(b) G.S. 116-209.91(a) reads as rewritten:
7 "(a) The Authority shall administer the tuition grants provided for in this Part pursuant to
8 guidelines and procedures established by the Authority consistent with its practices for
9 administering State-funded financial aid. The guidelines and procedures shall include an
10 application process and schedule, notification and disbursement procedures, standards for
11 reporting, and standards for return of tuition grants when a student withdraws. The Authority
12 shall not approve any grant until it receives proper certification from the appropriate constituent
13 institution that the student applying for the grant is an eligible student. Upon receipt of the
14 certification, the Authority shall remit, at the times it prescribes, the tuition grant to the
15 constituent institution on behalf, and to the credit, of the student. In the event a student on whose
16 behalf a tuition grant has been paid is not enrolled in an undergraduate program and carrying a
17 minimum academic load as of the tenth classroom day following the beginning of the school
18 term for which the tuition grant was paid, the constituent institution shall refund the full amount
19 of the tuition grant to the Authority."
20
21 TEMPORARILY WAIVE COMPLIANCE WITH CERTAIN SELECTIVE SERVICE
22 REQUIREMENTS AND REPORT
23 SECTION 8A.3.(a) Notwithstanding G.S. 116-143.3(c) and G.S. 143B-421.1, for
24 the 2022-2023 and 2023-2024 academic years only, the following shall apply:
25 (1) A dependent relative of a member of the Armed Forces who is abiding in this
26 State incident to active military duty pursuant to G.S. 116-143.3(c) is not
27 required to comply with the requirements of the Selective Service System in
28 order to be charged the in-State tuition rate in accordance with
29 G.S. 116-143.3.
30 (2) A person who is required to register under 50 U.S.C. § 3802 who fails to do
31 so may receive State-supported scholarships, programs for financial
32 assistance for postsecondary education, or loans insured by any State agency,
33 including educational assistance authorized under Article 23 of Chapter 116
34 of the General Statutes.
35 SECTION 8A.3.(b) No later than January 15, 2023, the State Education Assistance
36 Authority shall report to the Joint Legislative Education Oversight Committee on the following
37 recommendations related to ensuring compliance with G.S. 116-143.3(c) and G.S. 143B-421.1,
38 beginning in the 2024-2025 academic year and thereafter:
39 (1) The practicability and advisability of ensuring compliance.
40 (2) Methods of ensuring compliance and their merits.
41 (3) Administrative costs and other barriers to ensuring compliance.
42 (4) Any other relevant information.
43
44 EARLY ADMISSION TO KINDERGARTEN FOR STUDENTS PARTICIPATING IN
45 NCSEAA K-12 SCHOLARSHIP PROGRAMS
46 SECTION 8A.4.(a) G.S. 115C-562.1(3)a.3. reads as rewritten:
47 "3. Is eligible to enter kindergarten, first grade, or second grade
48 pursuant to Article 25 of this Chapter. A child who is the age
49 of 4four on or before April 16 is eligible to attend the following
50 school year if the principal, or equivalent, of the school in
51 which the child seeks to enroll finds that the student meets the

1 requirements of G.S. 115C-364(d) established by the
2 Authority pursuant to G.S. 115C-562.2(d) and those findings
3 are submitted to the Authority with the child's application."
4 SECTION 8A.4.(b) G.S. 115C-562.2(d) reads as rewritten:
5 "(d) The Authority shall establish rules and regulations for the administration and
6 awarding of scholarship grants and shall include a rule regarding the early admission of
7 four-year-old children that establishes the same factors for eligibility as the rule adopted by the
8 State Board of Education pursuant to G.S. 115C-364(d). The Authority may include in those
9 rules a lottery process for selection of scholarship grant recipients within the criteria established
10 by this section."
11 SECTION 8A.4.(c) G.S. 115C-591(3)a. reads as rewritten:
12 "a. Is eligible to attend a North Carolina public school pursuant to Article
13 25 of this Chapter. A child who is the age of 4four on or before April
14 16 is eligible to attend the following school year if the principal, or
15 equivalent, of the school in which the child seeks to enroll finds that
16 the student meets the requirements of G.S. 115C-364(d) established
17 by the Authority pursuant to G.S. 115C-562.2(d) and those findings
18 are submitted to the Authority with the child's application."
19 SECTION 8A.4.(d) By December 31, 2022, the State Education Assistance
20 Authority shall adopt a rule regarding the early admission of four-year-old children pursuant to
21 G.S. 115C-562.2(d), as amended by subsection (b) of this section, that establishes the same
22 guidelines as the rule adopted by the State Board of Education pursuant to G.S. 115C-364(d).
23 SECTION 8A.4.(e) This section is effective when it becomes law and applies
24 beginning with applications for scholarship grants for the 2023-2024 school year.
25
26 CHANGES TO NCSEAA'S ADMINISTRATION OF THE OPPORTUNITY
27 SCHOLARSHIP PROGRAM
28 SECTION 8A.5.(a) G.S. 115C-562.5(a)(2) reads as rewritten:
29 "(2) Provide to the Authority a criminal background check conducted for the staff
30 member with the highest decision-making authority, as defined by the bylaws,
31 articles of incorporation, or other governing document, to ensure that person
32 has not been convicted of any crime listed in G.S. 115C-332.document.
33 Information provided to the Authority in accordance with this subdivision is
34 privileged information and is not a public record but is for the exclusive use
35 of the Authority."
36 SECTION 8A.5.(b) G.S. 115C-562.5(a)(6) reads as rewritten:
37 "(6) Contract with a certified public accountant to perform a financial review,
38 consistent with generally accepted accounting principles, for each school year
39 in which the school accepts enrolls 70 or more students receiving more than
40 three hundred thousand dollars ($300,000) in scholarship grants or scholarship
41 funds awarded under this Part.by the Authority."
42 SECTION 8A.5.(c) G.S. 115C-562.5(d) reads as rewritten:
43 "(d) A nonpublic school accepting students receiving scholarship grants that fails to
44 comply with the requirements of this section shall be ineligible to receive future scholarship
45 grants if If the Authority determines that the a nonpublic school is not in compliance with the
46 requirements of this section. section, the nonpublic school shall be ineligible to receive future
47 scholarship funds. The nonpublic school shall notify the parent or guardian of any enrolled
48 student receiving a scholarship grant that the nonpublic school is no longer eligible to receive
49 future scholarship grants. A The Authority shall establish by rule a process for a nonpublic school
50 may to appeal for reconsideration of eligibility after one year. To ensure compliance, the Board
51 of Directors of the Authority shall review the criminal history provided under subdivision (2) of

1 subsection (a) of this section to ensure that the person has not been convicted of any crime listed
2 in G.S. 115C-332. The Board shall determine through this review whether the nonpublic school
3 is noncompliant with this section. The Board shall make written findings with regard to how the
4 criminal history information was used when making the compliance determination. The Board
5 of Directors may delegate any of the duties in this subsection to the Executive Director of the
6 Authority. As part of its review, the Board shall determine whether the results indicate that the
7 staff member has any of the following disqualifying characteristics:
8 (1) Poses a threat to the physical safety of students or personnel.
9 (2) Demonstrates that he or she does not have the integrity or honesty to fulfill his
10 or her duties in overseeing State funds and the requirements of the scholarship
11 grant program.
12 (3) Has not fully satisfied the criminal sentencing obligations imposed following
13 his or her conviction by a court of competent jurisdiction."
14
15 CHANGES TO NCSEAA'S ADMINISTRATION OF EDUCATION SAVINGS
16 ACCOUNTS
17 SECTION 8A.6.(a) G.S. 115C-592(b1), as amended by Section 2.14(a) of S.L.
19 "(b1) Scholarship Awards for Students with Certain Disabilities. – A student who has one
20 or more of the following disabilities listed as a primary or secondary disability on the student's
21 eligibility determination form submitted as required by subsection (e) of this section at the time
22 of application for scholarship funds may be awarded scholarship funds for each school year in
23 an amount of up to (i) seventeen thousand dollars ($17,000) for an eligible student or (ii) eight
24 thousand five hundred dollars ($8,500) for an eligible part-time student:
25 (1) Autism.
26 (2) Hearing impairment.
27 (3) Moderate or severe intellectual or developmental disability.
28 (4) Multiple, permanent orthopedic impairments.Orthopedic impairment.
29 (5) Visual impairment.
30 …."
31 SECTION 8A.6.(b) G.S. 115C-593 reads as rewritten:
32 "§ 115C-593. Student continuing eligibility.
33 After the initial disbursement of funds, the Authority shall ensure that the student's continuing
34 eligibility is assessed at least every three years by one of the following:
35 (1) The local education agency. – The local education agency shall assess if the
36 student continues to be a child with a disability and verify the outcome on a
37 form to be provided to the Authority.
38 (2) A licensed psychologist with a school psychology focus or a psychiatrist. –
39 The Except for eligible students whose primary disability is developmental
40 delay, the psychologist or psychiatrist shall assess, after review of appropriate
41 medical and educational records, if the education and related services received
42 by the student in the nonpublic school setting have improved the child's
43 educational performance and if the student would continue to benefit from
44 placement in the nonpublic school setting. The psychologist or psychiatrist
45 shall verify the outcome of the assessment on a form to be provided to the
46 Authority."
47 SECTION 8A.6.(c) No later than November 15, 2022, the State Education
48 Assistance Authority shall provide written notice to every parent of an eligible student who will
49 be impacted by subsection (b) of this section. The written notice shall (i) inform the parent of the
50 change and when the change will be implemented and (ii) provide the parent with relevant

1 information and resources related to continuing student eligibility for a Personal Education
2 Savings Account pursuant to Article 41 of Chapter 115C of the General Statutes.
3 SECTION 8A.6.(d) Subsection (b) of this section applies beginning with the
5
6 REVISE WASHINGTON CENTER INTERNSHIP SCHOLARSHIP PROGRAM
7 SECTION 8A.7.(a) Section 8A.8 of S.L. 2021-180 reads as rewritten:
8 "SECTION 8A.8.(a) Scholarship Program Established. – Of the funds appropriated by this
9 act for the 2021-2022 fiscal year to the Board of Governors of The University of North Carolina
10 for the Washington Center Internship Scholarship Program, the State Education Assistance
11 Authority (Authority) shall award scholarship grants to students who are residents of North
12 Carolina and are enrolled in their second year or higher in a constituent institution of The
13 University of North Carolina to attend a semester or summer term internship program or a
14 shortened one- to four-week public policy and career readiness seminar program at The
15 Washington Center for Internships and Academic Seminars (Washington Center) located in
16 Washington, D.C. The Authority shall administer the scholarship program pursuant to guidelines
17 and procedures established by the Authority consistent with its practices for administering
18 State-funded financial aid. The guidelines and procedures shall include an application process
19 and schedule, notification and disbursement procedures, standards for reporting, and standards
20 for return of funds when a student withdraws from the program. A student who meets the
21 eligibility criteria of the Washington Center to attend a semester or summer term internship
22 program or a shortened one- to four-week public policy and career readiness seminar program
23 may apply to the Authority for a grant to cover costs related to the internship program in an
24 amount of program. The Authority shall award grants to students in its discretion based on student
25 demand. Grants awarded pursuant to the program shall be for the following amounts:
26 (1) For semester term internships, up to seven ten thousand dollars ($7,000). The
27 Authority shall award grants to students in the order in which applications are
28 received.($10,000).
29 (2) For summer term internships, up to eight thousand dollars ($8,000).
30 (3) For shortened seminar programs, up to four thousand dollars ($4,000).
31 "SECTION 8A.8.(b) Limitations on Grant Amount. – If a student who is eligible for a grant
32 pursuant to this section also receives a scholarship or other grant covering the cost of attendance
33 for the program, then the amount of the State grant shall be reduced by an appropriate amount
34 determined by the Authority. The Authority shall reduce the amount of the grant so that the sum
35 of all grants and scholarship aid covering the cost of attendance shall not exceed the cost of
36 attendance for the program, including program fees, housing, and incidental costs. The cost of
37 attendance shall be established by the Authority in accordance with information provided to the
38 Authority by the Washington Center.
39 "SECTION 8A.8(c) Internship Activities. – A student participating in the Washington
40 Center's program shall (i) intern four days a week with a nonprofit corporation, private company,
41 federal agency, or a member of the United States Congress, (ii) take an academic class taught by
42 the Washington Center's faculty, (iii) participate in career readiness training programs, and (iv)
43 be responsible for a final portfolio project outlining work completed during the program.
44 Students from all academic majors can participate and benefit from the program.
45 "SECTION 8A.8.(c1) Academic Credit. – No later than December 1, 2022, the Board of
46 Governors of The University of North Carolina shall develop and promulgate guidance to
47 constituent institutions on a process for awarding up to three academic credit hours for
48 participation in an internship in accordance with the scholarship program.
49 "SECTION 8A.8.(d) Funds for the Program. – Any funds that are unencumbered for the
50 program at the end of each fiscal year shall not revert to the General Fund but shall remain

1 available for the purposes of this section. The Authority may use up to one percent (1%) of the
2 funds appropriated each fiscal year for the program for administrative costs.
3 "SECTION 8A.8.(e) Reporting. – By March 1, 2023, 1 of each year in which grants are
4 received under the program, the Authority, in consultation with the Washington Center, shall
5 report to the Joint Legislative Education Oversight Committee, the Senate Appropriations
6 Committee on Education/Higher Education, the House of Representatives Appropriations
7 Committee on Education, and the Fiscal Research Division on the implementation of the
8 scholarship program, including the number of participating students and the amount of awards
9 for each semester or summer term or shortened seminar program by constituent institution.
10 …."
11 SECTION 8A.7.(b) This section applies beginning with the award of scholarship
12 grants for the 2023 spring academic semester.
13
14 REPORT ON AND SUSPEND CERTAIN PROGRAM EVALUATION
15 REQUIREMENTS FOR OPPORTUNITY SCHOLARSHIPS
16 SECTION 8A.8.(a) No later than March 1, 2023, the Authority, in collaboration
17 with the Department of Administration, Division of Nonpublic Education, and the Department
18 of Public Instruction, shall report to the Joint Legislative Education Oversight Committee on at
19 least the following information:
20 (1) Options and a timeline to implement the recommendations of the March 1,
21 2018, report of the task force established pursuant to Section 10A.6 of S.L.
22 2017-57.
23 (2) The estimated cost of each option provided pursuant to subdivision (1) of this
24 subsection.
25 (3) Any legislative recommendations on improving the evaluation of students
26 receiving scholarship grants pursuant to Part 2A of Article 39 of Chapter 115C
28 SECTION 8A.8.(b) Notwithstanding G.S. 115C-562.5(d), a nonpublic school shall
29 not be ineligible to receive scholarship grants during the 2022-2023 school year as a result of an
30 inability to report data as required by G.S. 115C-562.5(c).
31 SECTION 8A.8.(c) For the 2022-2023 school year, the requirements of
32 G.S. 115C-562.5(c) do not apply.
33 SECTION 8A.8.(d) For the 2022 and 2023 calendar years, the requirements of
34 G.S. 115C-562.7(c) do not apply.
35
36 PART IX. HEALTH AND HUMAN SERVICES
37
38 PART IX-A. AGING AND ADULT SERVICES
39
40 STATE-COUNTY SPECIAL ASSISTANCE PROGRAM CHANGES
41 SECTION 9A.1.(a) G.S. 108A-42.1, as enacted by Section 9A.3A(b) of S.L.
43 "§ 108A-42.1. State-County Special Assistance Program payment rates.
44 (a) Basic Rate. – The maximum monthly rate for State-County Special Assistance
45 recipients residing in adult care homes or in-home living arrangements without a diagnosis of
46 Alzheimer's disease or dementia shall be one thousand one hundred eighty-two dollars ($1,182)
47 per month per resident. This rate shall be adjusted on January 1, 2024, January 1, 2023, and each
48 January 1 thereafter, using the federally approved Social Security cost-of-living adjustment
49 effective for the applicable year.
50 (b) Enhanced Rate. – The maximum monthly rate for State-County Special Assistance
51 recipients residing in special care units or in-home living arrangements with a diagnosis of

1 Alzheimer's disease or dementia shall be one thousand five hundred fifteen dollars ($1,515) per
2 month per resident. This rate shall be adjusted on January 1, 2024, January 1, 2023, and each
3 January 1 thereafter, using the federally approved Social Security cost-of-living adjustment
4 effective for the applicable year."
5 SECTION 9A.1.(b) Section 9A.3A(d) of S.L. 2021-180 reads as rewritten:
6 "SECTION 9A.3A.(d) Subsections (b), (c), and (e) of this section become effective on July
7 1, 2022, the date the Current Operations Appropriations Act of 2022 becomes law, or 30 days
8 after the date that all of the following have occurred, whichever is later:
9 (1) Both both the SSA and CMS have approved the applications submitted by the
10 Department of Health and Human Services pursuant to subsection (a) of this
11 section.section, whichever is later.
12 (2) CMS has approved the use of savings arising from the enhanced federal
13 medical assistance percentage (FMAP) for home and community-based
14 services available to the State under section 9817(a) of the American Rescue
15 Plan Act of 2021 (ARPA), P.L. 117-2, for both of the expenditures identified
16 in subsection (e) of this section.
17 The Secretary of the Department of Health and Human Services shall report to the Revisor
18 of Statutes when both the SSA and CMS approvals are obtained and the date of the approval.
19 Subsections (b), (c), and (e) of this section shall not become effective if either the SSA or CMS
20 disapproves the applications submitted by the Department of Health and Human Services
21 pursuant to subsection (a) of this section or if CMS disapproves the use of the savings arising
22 from the enhanced FMAP for home and community-based services under ARPA for either of the
23 expenditures identified in subsection (e) of this section. If, by June 30, 2023, the Department of
24 Health and Human Services has not received (i) notification of application approval from both
25 the SSA and CMS pursuant to subsection (a) of this section and (ii) notification from CMS of
26 approval for the use of the savings from the enhanced FMAP for either of the expenditures
27 identified in subsection (e) of this section, then subsections (b), (c), and (e) of this section shall
28 expire. This subsection is effective when it becomes law."
29 SECTION 9A.1.(c) Section 9A.3A(e) of S.L. 2021-180 reads as rewritten:
30 "SECTION 9A.3A.(e) The Department of Health and Human Services shall use savings
31 arising from the enhanced FMAP for home and community-based services available to the State
32 under section 9817(a) of ARPA to fund both of the following:
33 (1) NC Medicaid program costs associated with beneficiaries residing in an
34 in-home living arrangement who are eligible for the State-County Special
35 Assistance Program due to the changes to the program required by this section.
36 (2) The State share of the monthly State-County Special Assistance payments
37 associated with individuals residing in an in-home living arrangement who are
38 eligible for the State-County Special Assistance Program due to the changes
39 to the program required by this section.
40 The Department of Health and Human Services shall continue to fund the expenditures
41 identified under subdivisions (1) and (2) of this subsection utilizing funds from the HCBS Fund
42 established in Section 9D.8A of this act, so long as funds remain available in the HCBS Fund."
43 SECTION 9A.1.(d) Subsections (a) and (c) of this section become effective on the
44 date the Current Operations Appropriations Act of 2022 becomes law, or 30 days after the date
45 that both the SSA and CMS have approved the applications submitted by the Department of
46 Health and Human Services pursuant to subsection (a) of Section 9A.3A of S.L. 2021-180,
47 whichever is later. The remainder of this section is effective when it becomes law.
48
49 PART IX-B. CENTRAL MANAGEMENT AND SUPPORT
50

1 DETAILED PLAN FOR REORGANIZING CERTAIN CHILD AND FAMILY
2 WELL-BEING PROGRAMS
3 SECTION 9B.1.(a) By October 1, 2022, the Department of Health and Human
4 Services (Department) shall submit a detailed plan and time line to the Joint Legislative Oversight
5 Committee on Health and Human Services and the Fiscal Research Division on its proposal to
6 transfer certain child and family well-being programs and services to a new division within the
7 Department. At a minimum, the plan shall include the following:
8 (1) The mission and purpose of the proposed new division.
9 (2) A list of the specific programs and services to be transferred to the new
10 division.
11 (3) A detailed proposed budget for the new division, including:
12 a. The specific budget codes and fund codes that would be impacted by
13 the creation of the new division and the transfer of certain child and
14 family well-being programs and services into the new division.
15 b. Identification of any positions that would be transferred to the new
16 division.
17 c. An estimate and explanation of any realignment or reapportionment of
18 State funds or federal block grant funds that would be necessary to
19 implement the proposed reorganization. If any fund codes are being
20 split, the estimated dollar amount that will be allocated to each
21 division.
22 (4) Anticipated impact on local governments and key service providers.
23 (5) Identification of the specific functions, powers, duties, and obligations that
24 would need to be transferred to the new division in order to implement this
25 proposed reorganization.
26 (6) Any legislative changes that would be necessary to implement this proposed
27 reorganization.
28 (7) Any other information the Department deems relevant to implementing this
29 proposed reorganization.
30 SECTION 9B.1.(b) By April 1, 2023, the Department shall submit to the Joint
31 Legislative Oversight Committee on Health and Human Services and the Fiscal Research
32 Division any revisions to the detailed plan required by subsection (a) of this section, along with
33 an explanation for each of the revisions.
34 SECTION 9B.1.(c) No reorganization of child and family well-being programs and
35 services, and no realignment or reapportionment of State funds or federal block grant funds
36 related to the reorganization of child and family well-being programs and services, shall be
37 implemented without express authorization to do so by an act of the General Assembly.
38
39 REDIRECTION OF FUNDS FROM ATRIUM HEALTH TO CLEVELAND COUNTY
40 FOR DEVELOPMENT OF A HEALTH CENTER
41 SECTION 9B.2. Effective June 30, 2022, and notwithstanding the Committee
42 Report referenced in Section 43.2 of S.L. 2021-180 or any provision of law to the contrary, the
43 funds appropriated to the Department of Health and Human Services, Division of Central
44 Management and Support, Office of Rural Health, in the sum of five million dollars ($5,000,000)
45 in nonrecurring funds for the 2021-2022 fiscal year to be allocated as a directed grant to Atrium
46 Health for the development of a federally qualified health center (FQHC) or an FQHC look-alike
47 in Cleveland County shall instead be allocated as a directed grant to Cleveland County for this
48 purpose.
49
50 FURTHER STUDY OF THE STATEWIDE HEALTH INFORMATION EXCHANGE
51 NETWORK AND THE STATEWIDE HEALTH INFORMATION EXCHANGE ACT

1 (HIEA); AND TEMPORARY SUSPENSION OF THE HIEA PROVISION
2 CONDITIONING THE RECEIPT OF STATE FUNDS ON CONNECTING TO AND
3 SUBMITTING DATA THROUGH THE HEALTH INFORMATION EXCHANGE
4 NETWORK
5 SECTION 9B.3.(a) By March 31, 2023, the North Carolina Health Information
6 Exchange Advisory Board shall submit a report on the statewide health information exchange
7 network (HIE Network) known as NC HealthConnex to the Joint Legislative Oversight
8 Committee on Health and Human Services. The report shall include at a minimum:
9 (1) An update regarding the connectivity status of providers and entities required
10 by G.S. 90-414.4 to connect to and submit data through the HIE Network.
11 This update shall be based on an analysis conducted by the North Carolina
12 Health Information Exchange Authority, with assistance as necessary from
13 the Department of State Treasurer, State Health Plan Division, and the
14 Department of Health and Human Services, Division of Health Benefits.
15 (2) As a supplement to the recommendations provided pursuant to Section 7(a) of
16 S.L. 2021-26, additional recommendations regarding appropriate features or
17 actions, including legislative or administrative proposals, to support
18 enforcement of the Statewide Health Information Exchange Act and
19 enhancement of the HIE Network.
20 SECTION 9B.3.(b) Notwithstanding any provision of Article 29B of Chapter 90 of
21 the General Statutes or any other provision of law to the contrary, connecting to and submitting
22 data through the HIE Network known as NC HealthConnex shall not be a condition precedent to
23 the receipt of State funds, including Medicaid funds, by any provider or entity subject to
24 subsection (b) of G.S. 90-414.4 until a bill designating a lead agency responsible for enforcement
25 of the Statewide Health Information Exchange Act is enacted into law.
26 SECTION 9B.3.(c) This section is effective when it becomes law.
27
28 PART IX-C. CHILD DEVELOPMENT AND EARLY EDUCATION
29
30 RAISE NC PRE-K BASE REIMBURSEMENT RATES
31 SECTION 9C.1. Section 9C.3 of S.L. 2021-180 reads as rewritten:
32 "SECTION 9C.3. Of the funds appropriated in this act to the Department of Health and
33 Human Services, Division of Child Development and Early Education, funds shall be allocated
34 to raise the base reimbursement rates for child care centers participating in the North Carolina
35 Prekindergarten (NC Pre-K) program by two percent (2%) over 2020-2021 fiscal year rates for
36 the 2021-2022 fiscal year and by an additional two percent (2%) seven percent (7%) over the
37 2021-2022 rates for the 2022-2023 fiscal year. It is the intent of the General Assembly that funds
38 allocated pursuant to this section be used to increase the salaries of teachers working in child care
39 centers as a means to address disparities in teacher salaries among teachers working in child care
40 centers versus those working in public schools or Head Start centers. A portion of these funds
41 shall be allocated to raise the base reimbursement rates for public schools and Head Start centers
42 participating in the NC Pre-K program by five percent (5%) over the 2021-2022 rates for the
43 2022-2023 fiscal year."
44
45 RAISE CAP ON ADMINISTRATIVE COSTS/SMART START
46 SECTION 9C.2. Section 9C.6(b) of S.L. 2021-180 reads as rewritten:
47 "SECTION 9C.6.(b) Administration. – Administrative costs shall be equivalent to, on an
48 average statewide basis for all local partnerships, not more than eight percent (8%) nine percent
49 (9%) of the total statewide allocation to all local partnerships. For purposes of this subsection,
50 administrative costs shall include costs associated with partnership oversight, business and
51 financial management, general accounting, human resources, budgeting, purchasing, contracting,

1 and information systems management. The North Carolina Partnership for Children, Inc., shall
2 continue using a single statewide contract management system that incorporates features of the
3 required standard fiscal accountability plan described in G.S. 143B-168.12(a)(4). All local
4 partnerships are required to participate in the contract management system and, directed by the
5 North Carolina Partnership for Children, Inc., to collaborate, to the fullest extent possible, with
6 other local partnerships to increase efficiency and effectiveness."
7
8 ALIGN STATE CRIMINAL BACKGROUND CHECKS FOR PROSPECTIVE CHILD
9 CARE PROVIDERS WITH FEDERAL BLOCK GRANT
10 REQUIREMENTS/REPORT
11 SECTION 9C.3.(a) G.S. 110-90.2(b) reads as rewritten:
12 "(b) Effective January 1, 1996, the The Department shall ensure that, prior to employment
13 and every three five years thereafter, the criminal history of all child care providers is checked
14 and a determination is made of the child care provider's fitness to have responsibility for the
15 safety and well-being of children based on the criminal history. The Department shall ensure that
16 all child care providers are checked for county, State, and federal criminal histories."
17 SECTION 9C.3.(b) G.S. 110-90.2 is amended by adding a new subsection to read:
18 "(d1) The Department may allow a prospective child care provider to begin employment on
19 a provisional basis when the Department has not yet received satisfactory results from the county,
20 State, and federal criminal history checks but receives satisfactory results from either the federal
21 or State criminal history check for the prospective child care provider. However, until the
22 Department makes its determination regarding checks from the county, State, and federal
23 criminal histories, a prospective child care provider employed provisionally pursuant to this
24 subsection shall be supervised at all times by a child care provider who has received qualifying
25 results on the child care provider's criminal history checks within the last five years. If the county,
26 State, and federal criminal history checks are not completed within 45 days from the date the
27 checks were requested and there are no disqualifying results on any of the completed components
28 of the criminal history checks, the Department shall provide written notification to the provisional
29 child care provider that the child care provider is qualified to provide child care and is no longer
30 subject to provisional status."
31 SECTION 9C.3.(c) The Department of Health and Human Services (Department)
32 shall submit a report by December 1, 2022, and subsequently each year for five years thereafter,
33 to the Joint Legislative Oversight Committee on Health and Human Services on the following:
34 (1) The number of prospective child care providers employed provisionally
35 pursuant to this section.
36 (2) The number of provisional child care providers who qualified to provide child
37 care because that provider was no longer subject to provisional status.
38 (3) Any concerns or issues that arise as a result of implementing this section.
39 (4) Any other information the Department deems relevant.
40
41 PART IX-D. HEALTH BENEFITS
42
43 MODIFY MEDICAID RECEIVABLES ACCOUNTED FOR AS NONTAX REVENUE
44 SECTION 9D.1. Section 9D.6(b) of S.L. 2021-180 reads as rewritten:
45 "SECTION 9D.6.(b) For the 2021-2022 fiscal year, the Department of Health and Human
46 Services shall deposit from its revenues one hundred forty-six million seven hundred five
47 thousand five hundred eighty-four dollars ($146,705,584) with the Department of State Treasurer
48 to be accounted for as nontax revenue. For the 2022-2023 fiscal year, the Department of Health
49 and Human Services shall deposit from its revenues one hundred fifty-three million eight hundred
50 five thousand five hundred eighty-four dollars ($153,805,584) one hundred sixty-one million five
51 hundred thousand dollars ($161,500,000) with the Department of State Treasurer to be accounted

1 for as nontax revenue. These deposits shall represent the return of advanced General Fund
2 appropriations, nonfederal revenue, fund balances, or other resources from State-owned and
3 State-operated hospitals that are used to provide indigent and nonindigent care services. The
4 return from State-owned and State-operated hospitals to the Department of Health and Human
5 Services shall be made from nonfederal resources in the following manner:
6 (1) The University of North Carolina Hospitals at Chapel Hill shall make the
7 following deposits:
8 a. For the 2021-2022 fiscal year, the amount of thirty-one million three
9 hundred five thousand five hundred eighty-four dollars ($31,305,584).
10 b. For the 2022-2023 fiscal year, the amount of thirty-one million three
11 hundred five thousand five hundred eighty-four dollars
12 ($31,305,584).thirty-one million three hundred sixty-five thousand
13 three hundred five dollars ($31,365,305).
14 (2) All State-owned and State-operated hospitals, other than the University of
15 North Carolina Hospitals at Chapel Hill, that specialize in psychiatric care
16 shall annually deposit an amount equal to the amount of the payments from
17 the Department of Health and Human Services, Division of Health Benefits,
18 for uncompensated care."
19
20 MODIFY LME/MCO INTERGOVERNMENTAL TRANSFERS
21 SECTION 9D.2. Section 9D.7(a) of S.L. 2021-180 reads as rewritten:
22 "SECTION 9D.7.(a) The local management entities/managed care organizations
23 (LME/MCOs) shall make intergovernmental transfers to the Department of Health and Human
24 Services, Division of Health Benefits (DHB), in an aggregate amount of eighteen million
25 twenty-eight thousand two hundred seventeen dollars ($18,028,217) in the 2021-2022 fiscal year
26 and in an aggregate amount of eighteen million twenty-eight thousand two hundred seventeen
27 dollars ($18,028,217) for the 2022-2023 fiscal year. The due date and frequency of the
28 intergovernmental transfer required by this section shall be determined by DHB. The amount of
29 the intergovernmental transfer that each individual LME/MCO is required to make in each fiscal
30 year shall be as follows:
31 2021-2022 2022-2023
32 Alliance Behavioral Healthcare $2,858,418 $2,856,834$4,558,852
33 Cardinal Innovations Healthcare $4,751,262 $4,645,652N/A
34 Eastpointe $1,664,172 $1,663,249$1,637,614
35 Partners Health Management $2,637,754 $2,749,261$3,413,647
36 Sandhills Center $1,879,510 $1,878,469$2,473,081
37 Trillium Health Resources $2,656,332 $2,654,860$2,967,117
38 Vaya Health $1,580,769 $1,579,892$2,977,906."
39
40 MEDICAID RATES FOR PERSONAL CARE SERVICES AND SKILLED NURSING
41 SECTION 9D.3.(a) Of the funds appropriated to the Department of Health and
42 Human Services, Division of Health Benefits (DHB), in S.L. 2021-180, as amended by Section
43 2.2 of this act, the sum of fifty-two million eight hundred thousand dollars ($52,800,000) in
44 nonrecurring funds for the 2021-2022 fiscal year shall be used to support the rate increases for
45 personal care services and skilled nursing outlined in the bulletin published by DHB on March
46 24, 2022, entitled "SPECIAL BULLETIN COVID-19 #239: Update on Temporary Rate
47 Increases and HCBS DCW Rate Implementation" for the months of April, May, and June of
48 2022.
49 SECTION 9D.3.(b) Of the funds appropriated to DHB in this act, the sum of
50 ninety-five million dollars ($95,000,000) in nonrecurring funds for the 2022-2023 fiscal year

1 shall be used to provide the nonfederal share of the following increased Medicaid rates for a
2 limited period of time beginning July 1, 2022:
3 (1) An increase of one dollar and seven cents ($1.07) per 15-minute increment
4 resulting in a total rate of five dollars and ninety-six cents ($5.96) per
5 15-minute increment for personal care services provided to Medicaid
6 beneficiaries through Medicaid Direct, Community Alternatives Program for
7 Children (CAP/C) Services, Community Alternatives Program for Disabled
8 Adults (CAP/DA), and Community Alternatives Program Choice (CAP/CO).
9 (2) The difference in the skilled nursing rates that were in place as of February 1,
10 2020, and the increased rates in place as of June 30, 2022, in order to continue
11 the rates in place as of June 30, 2022.
12 When there are not sufficient funds remaining from the funds appropriated to DHB
13 in this subsection to provide the full nonfederal share of both of the increased Medicaid rates
14 specified in subdivisions (1) and (2) of this subsection for the next full month, then DHB shall
15 use whatever funds remain available to provide the nonfederal share of increased Medicaid rates
16 for personal care services and skilled nursing services that are as close as possible, within the
17 funds remaining, to the rates specified in subdivisions (1) and (2) of this subsection.
18 Once there are no longer any funds remaining from the funds appropriated to DHB in
19 this subsection, DHB shall not be required to maintain any of the increased Medicaid rates
20 specified in this subsection. Consistent with G.S. 108A-54(e)(1), DHB shall set rates for personal
21 care services and skilled nursing at such a level that the total expenditures for DHB, net of agency
22 receipts, does not exceed the authorized budget for the Medicaid and NC Health Choice
23 programs.
24 SECTION 9D.3.(c) Subsection (a) of this section becomes effective June 30, 2022.
25
26 MEDICAID COVERAGE/EBCI
27 SECTION 9D.4. The Secretary of the Department of Health and Human Services is
28 authorized to submit an 1115 Demonstration Waiver, State Plan amendment, or other type of
29 waiver to the Centers for Medicare and Medicaid Services that allows for Medicaid coverage of
30 healthcare services that (i) qualify for one hundred percent (100%) federal medical assistance
31 percentage, (ii) are provided by Indian Health Service (IHS) providers or Eastern Band of
32 Cherokee Indians tribal facilities, and (iii) are provided to individuals with no other form of health
33 coverage.
34
35 CONFORM TO FEDERAL REQUIREMENTS/ENDING OF PHE
36 SECTION 9D.5. Section 6(b) of S.L. 2020-88 reads as rewritten:
37 "SECTION 6.(b) In complying with the requirements of this section, county departments of
38 social services shall not terminate benefits for a Medicaid beneficiary if doing so would result in
39 the State being ineligible for the increased Medicaid funding under Section 6008 of P.L. 116-127.
40 When a county department of social services identifies a case that would be subject to termination
41 of Medicaid eligibility in the absence of the preceding requirement, the case shall be identified
42 in the NC FAST system utilizing a uniform identifier to be established by the Department of
43 Health and Human Services no later than July 31, 2020. Notices of termination for cases with the
44 identifier shall be sent in accordance with G.S. 108A-79 within 90 days All Medicaid renewals,
45 post-enrollment verifications, and redeterminations of eligibility for individuals that would have
46 been completed, or that would have resulted in a termination, but for the imposition of federal
47 requirements related to Section 6008 of P.L. 116-127 shall be completed, and any applicable
48 notices of termination sent in accordance with G.S. 108A-79, as expeditiously as possible and no
49 later than the twelfth month after the expiration of the declared nationwide public health
50 emergency as a result of the 2019 novel coronavirus."
51

1 USE OF THE MEDICAID TRANSFORMATION FUND FOR MEDICAID
2 TRANSFORMATION NEEDS CHANGES
3 SECTION 9D.6.(a) Section 9D.16(b) of S.L. 2021-180 reads as rewritten:
4 "SECTION 9D.16.(b) Non-Claims Run Out Medicaid Transformation Needs. – Subject to
5 the fulfillment of conditions specified in subsection (c) of this section, the sum of one hundred
6 thirty-three million seventy-eight thousand dollars ($133,078,000) in nonrecurring funds for the
7 2021-2022 fiscal year and the sum of one hundred nineteen million four thousand dollars
8 ($119,004,000) one hundred ninety-three million one hundred three thousand three hundred
9 forty-four dollars ($193,103,344) in nonrecurring funds for the 2022-2023 fiscal year from the
10 Medicaid Transformation Fund may be transferred to DHB for the sole purpose of providing the
11 State share for qualifying needs directly related to Medicaid transformation, as required by S.L.
12 2015-245, as amended. Funds may be transferred to DHB as qualifying needs arise during the
13 2021-2023 fiscal biennium and need not be transferred in one lump sum. Any amount of funds
14 from the one hundred thirty-three million seventy-eight thousand dollars ($133,078,000) made
15 available under this subsection for transfer to DHB in the 2021-2022 fiscal year that has not been
16 transferred to DHB for qualifying needs as of June 30, 2022, shall continue to be available for
17 transfer to DHB as qualifying needs arise during the 2022-2023 fiscal year.
18 For the purposes of this section, the term "qualifying need" shall be limited to the following
19 Medicaid transformation needs and may include contracts and temporary staffing:
20 …."
21 SECTION 9D.6.(b) Section 9D.16(c)(2) of S.L. 2021-180 reads as rewritten:
22 "(2) The amount requested provides a State share that will not result in total
23 requirements that exceed eight hundred million dollars ($800,000,000) one
24 billion fifty million dollars ($1,050,000,000) in nonrecurring funds for the
25 2021-2023 fiscal biennium."
26
27 ADJUST IMPLEMENTATION DATE FOR BH IDD TAILORED PLANS
28 SECTION 9D.7.(a) The Division of Health Benefits, Department of Health and
29 Human Services (DHHS), shall implement BH IDD tailored plans, as defined under
30 G.S. 108D-1, no later than December 1, 2022. The initial term of the BH IDD tailored plan
31 contracts is four years, ending December 1, 2026. If DHHS extends the standard benefit plan
32 contracts, as authorized by Section 7(b) of S.L. 2020-88, then DHHS shall offer to extend the
33 initial term of the BH IDD tailored plan contracts an equivalent amount of time.
34 SECTION 9D.7.(b) Section 7(b) of S.L. 2020-88 reads as rewritten:
35 "SECTION 7.(b) The Department of Health and Human Services (DHHS) shall amend the
36 statewide and regional standard benefit plan prepaid health plan capitated contracts awarded as
37 of June 1, 2020, so that the contract covers four contract year terms, instead of three, contracts
38 continue through December 1, 2026, with the option to extend the contract contracts for up to
39 one successive contract year or a shorter period as required by DHHS."
40 SECTION 9D.7.(c) G.S. 108D-60(a) reads as rewritten:
41 "(a) BH IDD tailored plans shall be defined as capitated PHP contracts that meet all
42 requirements in this Article pertaining to capitated PHP contracts, except as specifically provided
43 in this section. With regard to BH IDD tailored plans, the following shall occur:
44 …
45 (2) During the initial contract term of the initial contracts for BH IDD tailored
46 plans to begin one year after the implementation of the first contracts for
47 standard benefit plans and to last four years, plans, an LME/MCO shall be the
48 only entity that may operate a BH IDD tailored plan. LME/MCOs operating
49 BH IDD tailored plans shall receive all capitation payments under the BH IDD
50 tailored plan contracts. Entities operating BH IDD tailored plan contracts shall
51 conduct care coordination administrative functions for all services offered

1 through the BH IDD tailored plans, and shall bear all risk for service
2 utilization. This subdivision shall not be construed to preclude an entity
3 operating a BH IDD tailored plan from engaging in incentives, risk sharing,
4 or other contractual arrangements.
5 (3) During the initial contract term of the initial contracts for BH IDD tailored
6 plans to begin one year after the implementation of the first contracts for
7 standard benefit plans and to last four years, plans, BH IDD tailored plans
8 shall be operated only by LME/MCOs that meet certain criteria established by
9 the Department. Any LME/MCO desiring to operate a BH IDD tailored plan
10 will shall make an application to the Department in response to this set of
11 criteria. Approval to operate a BH IDD tailored plan will be contingent upon
12 a comprehensive readiness review. The constituent counties of the existing
13 LME/MCOs may change, or existing LME/MCOs may merge or be acquired
14 by another LME/MCO, as allowed under Chapter 122C of the General
15 Statutes, prior to operating a BH IDD tailored plan, provided that the
16 Department ensures every county in the State is covered by an LME/MCO
17 that operates a BH IDD tailored plan. The Department shall issue no more
18 than seven and no fewer than five regional BH IDD tailored plan contracts
19 and shall not issue any statewide BH IDD tailored plan contracts.
20 (4) After the term of the initial contracts for BH IDD tailored plans to last four
21 years, plans, BH IDD tailored plan contracts will shall be the result of RFPs
22 requests for proposals issued by the Department and the submission of
23 competitive bids from nonprofit PHPs and entities operating the initial BH
24 IDD tailored plan contracts.
25 …."
26
27 CLARIFY TREATMENT OF 340B DRUGS/ADDRESS REIMBURSEMENT FOR
28 FQHCS
29 SECTION 9D.8.(a) Section 9D.19A of S.L. 2021-180 reads as rewritten:
30 "SECTION 9D.19A.(a) Notwithstanding G.S. 108D-65(6)b., for the prepaid health plan
31 capitated contracts required under Article 4 of Chapter 108D of the General Statutes, the
32 reimbursement for the ingredient cost for prescription covered outpatient drugs and the
33 prescription professional drug dispensing fee shall be set at one hundred percent (100%) of the
34 Medicaid pharmacy fee-for-service reimbursement, pursuant to the Centers for Medicare and
35 Medicaid Services' reimbursement methodologies in Attachment 4.19-B of section 12 of the
36 Medicaid State Plan under Title XIX of the Social Security Act Medicaid Assistance Program,
37 as filed with, and approved by, the Centers for Medicare and Medicaid Services. The National
38 Average Drug Acquisition Cost and Cost (NADAC), when applicable and as allowed under the
39 Medicaid State Plan, plus a professional dispensing fee based on the cost of the dispensing study
40 conducted on behalf of the North Carolina Department of Health and Human Services, Division
41 of Health Benefits.Benefits, will serve as the primary method utilized for reimbursement for retail
42 community pharmacy claims not dispensed utilizing covered outpatient drugs acquired through
43 the 340B drug discount program established under 42 U.S.C. § 256b. All claims utilizing drugs
44 acquired through the 340B drug discount program shall be reimbursed in accordance with the
45 CMS-approved Medicaid State Plan.
46 "SECTION 9D.19A.(b) This section is effective when it becomes law and expires June 30,
47 2023.2026."
48 SECTION 9D.8.(b) Of the funds appropriated in this act from the General Fund to
49 the Department of Health and Human Services, Division of Health Benefits (DHB), for the
50 2022-2023 fiscal year, the sum of four million four hundred thousand dollars ($4,400,000) in
51 nonrecurring funds shall be used for temporary Medicaid reimbursement increases to federally

1 qualified health centers (FQHCs) to be applicable to all FQHCs as a percentage above cost. DHB
2 shall submit the necessary documents to obtain approval from the Centers for Medicare and
3 Medicaid Services to implement this section that contains an effective date for these increases of
4 July 1, 2022.
5 SECTION 9D.8.(c) DHB shall collaborate with FQHCs to develop a comprehensive
6 reimbursement structure that addresses pharmacy costs in the context of overall financial
7 challenges faced by FQHCs. No later than February 1, 2023, DHB shall submit a detailed
8 proposal of the comprehensive reimbursement structure, including the anticipated cost to the
9 State of implementation, to the Joint Legislative Oversight Committee on Medicaid and NC
10 Health Choice and the Fiscal Research Division.
11 SECTION 9D.8.(d) Subsection (a) of this section is effective retroactively to
12 November 18, 2021.
13
14 ADJUST IMPLEMENTATION DATE FOR REQUIRING LME/MCOS TO PAY FOR
15 BEHAVIORAL HEALTH SERVICES PROVIDED TO BENEFICIARIES
16 AWAITING HOSPITAL DISCHARGE
17 SECTION 9D.9. Section 9D.22(f) of S.L. 2021-180 reads as rewritten:
18 "SECTION 9D.22.(f) CMS Approval. – The Department of Health and Human Services,
19 Division of Health Benefits, shall submit to the Centers for Medicare and Medicaid Services
20 (CMS) any State Plan amendments necessary to establish the new Medicaid coverage required
21 by this section. The new Medicaid covered services and rates shall be implemented July 1, 2022.
22 December 31, 2022. If approval from CMS is not granted by July 1, 2022 December 31, 2022,
23 then DHB shall retroactively implement services and rates upon approval from CMS to July 1,
24 2022. December 31, 2022. The new Medicaid covered services and rates shall only be
25 implemented to the extent allowable by CMS."
26
27 MEDICAID HOSPITAL ASSESSMENT TECHNICAL ADJUSTMENTS
28 SECTION 9D.10.(a) G.S. 108A-146.12, as enacted by Section 9D.13A(c) of S.L.
30 "§ 108A-146.12. Postpartum coverage component.
31 The postpartum coverage component is twelve million five hundred thousand dollars
32 ($12,500,000) for each quarter of the 2021-2022 State fiscal year. For each quarter of the
33 2022-2023 State fiscal year, the postpartum coverage component is eleven million four thousand
34 four hundred twenty-four dollars ($11,004,424). For each subsequent State fiscal year, the
35 postpartum coverage component shall be increased over the prior year's quarterly amount by the
36 Medicare Economic Index."
37 SECTION 9D.10.(b) G.S. 108A-146.13, as amended by Section 9D.13A(d) of S.L.
39 "§ 108A-146.13. Intergovernmental transfer adjustment component.
40 (a) The intergovernmental transfer adjustment component is the sum of all of the
41 following subcomponents:
42 (1) The historical subcomponent is forty-one million two hundred twenty-seven
43 thousand three hundred twenty-one dollars ($41,227,321) for each quarter of
44 the 2021-2022 State fiscal year. For each quarter of the 2022-2023 State fiscal
45 year, the historical subcomponent is forty-two million seventeen thousand
46 forty-five dollars ($42,017,045). For each subsequent State fiscal year after
47 the 2022-2023 State fiscal year, the historical subcomponent shall be
48 increased over the prior year's quarterly amount by the market basket
49 percentage.
50 (2) The postpartum subcomponent applies to the assessments under this Part only
51 during the period of April 1, 2022, through March 31, 2027, and is two million

1 nine hundred sixty-two thousand five hundred dollars ($2,962,500) for each
2 quarter of the 2021-2022 State fiscal year. For each quarter of the 2022-2023
3 State fiscal year, the postpartum subcomponent is two million six hundred six
4 thousand three hundred eighty-four dollars ($2,606,384). For each subsequent
5 State fiscal year, the postpartum subcomponent shall be increased over the
6 prior year's quarterly amount by the Medicare Economic Index.
7 …
8 (b) If a public acute care hospital closes or becomes a private acute care hospital, then,
9 beginning in the first assessment quarter following the closure or change to a private acute care
10 hospital and for each quarter thereafter, the intergovernmental transfer adjustment component
11 described in subsection (a) of this section, as inflated in accordance with that section, shall be
12 reduced by the amount of the public acute care hospital's intergovernmental transfer obligation
13 to the Department made during its last quarter of operation as a public acute care hospital."
14 SECTION 9D.10.(c) Notwithstanding G.S. 108A-146.12 and G.S. 108A-146.13, for
15 the quarter beginning October 1, 2022, the postpartum coverage component is three million three
16 hundred forty-nine thousand seven hundred thirty-one dollars ($3,349,731) and the postpartum
17 subcomponent of the intergovernmental transfer adjustment component is seven hundred
18 eighty-nine thousand five hundred fifty-nine dollars ($789,559).
19 SECTION 9D.10.(d) This section becomes effective October 1, 2022, and applies
20 to modernized hospital assessments imposed under Part 2 of Article 7B of Chapter 108A of the
21 General Statutes on or after that date.
22
23 AVERAGE COMMERCIAL RATE SUPPLEMENTAL AND DIRECTED PAYMENT
24 PROGRAM/ECU HEALTH PHYSICIANS
25 SECTION 9D.11. Notwithstanding Section 13(d) of S.L. 2020-88, the Department
26 of Health and Human Services shall revise the Average Commercial Rate Supplemental and
27 Directed Payment Program to permit program eligibility for providers affiliated with ECU Health
28 Physicians, a part of East Carolina University Health. ECU Health Physicians shall be subject to
29 the same limit on payments that applies to eligible providers affiliated with the East Carolina
30 University Brody School of Medicine.
31
32 BH IDD TAILORED PLAN PMPM ADJUSTMENT RECOMMENDATIONS
33 SECTION 9D.12. Beginning March 1, 2023, and for five years thereafter, the
34 Department of Health and Human Services, Division of Health Benefits (DHB), shall submit to
35 the Joint Legislative Oversight Committee on Medicaid and NC Health Choice and the Fiscal
36 Research Division a report containing recommendations regarding adjustments to the per
37 member per month (PMPM) capitation amount paid to local management entities/managed care
38 organizations (LME/MCOs) operating BH IDD tailored plans. The recommendations shall
39 include adjustment amounts that are sufficient to increase the wages of direct support personnel
40 who provide services to Medicaid beneficiaries residing in intermediate care facilities for
41 individuals with intellectual disabilities (ICF/IIDs), including ICF/IID-level group homes, and
42 Medicaid beneficiaries receiving services through the North Carolina Innovations waiver
43 program. The report shall contain the costs associated with any recommended adjustments to the
44 PMPM capitation amount. DHB shall take the following into account when making the
45 recommendations:
46 (1) Wages of direct support personnel working at the State developmental centers,
47 with the goal of aligning the wages of direct support personnel regardless of
48 place of employment.
49 (2) Actuarial soundness requirements for capitation rates.

1 (3) Assurance of continued safe and effective provision of services to Medicaid
2 beneficiaries residing in ICF/IIDs or receiving services through the North
3 Carolina Innovations waiver program.
4 (4) Input from stakeholders, including the acceptance of data from knowledgeable
5 trade organizations that supports the validation of any recommended
6 adjustment to the PMPM capitation amounts.
7
8 CHANGES RELATED TO BH IDD TAILORED PLANS LAUNCH
9 SECTION 9D.13.(a) Notwithstanding the requirements under G.S. 108D-35 and
10 G.S. 108D-60(a), coverage of outpatient point-of-sale prescription drugs for Medicaid
11 beneficiaries enrolled in a BH IDD tailored plan shall continue to be covered through Medicaid
12 fee-for-service and not through the BH IDD tailored plans for a period of time that (i) shall be
13 determined by the Department of Health and Human Services, Division of Health Benefits, and
14 (ii) does not exceed six months from the date BH IDD tailored plan initial contracts begin. During
15 this time period, BH IDD tailored plans shall cover prescription drugs submitted as medical
16 outpatient professional claims through the Physician Administered Drug Program.
17 SECTION 9D.13.(b) Until December 31, 2023, G.S. 122C-124.2(b)(1) and
18 G.S. 122C-125.2 shall not apply to any local management entity/managed care organization
19 (LME/MCO) under a BH IDD tailored plan contract with the Department of Health and Human
20 Services (DHHS). For this period of time, any solvency and capital reserve requirements for an
21 LME/MCO shall be set by DHHS in its BH IDD tailored plan contract. No later than March 1,
22 2023, DHHS shall submit a report to the Joint Legislative Oversight Committee on Health and
23 Human Services, the Joint Legislative Oversight Committee on Medicaid and NC Health Choice,
24 and the Fiscal Research Division that contains detailed recommendations on solvency standards
25 applicable to all LME/MCOs post-implementation of the BH IDD tailored plans, including any
26 legislative changes to G.S. 108D-124.2 and G.S. 122C-125.2.
27 SECTION 9D.13.(c) G.S. 108D-1(6) is repealed.
28 SECTION 9D.13.(d) G.S. 108D-21 reads as rewritten:
29 "§ 108D-21. LME/MCO provider networks.
30 Each LME/MCO operating the combined 1915(b) and (c) waivers shall develop and maintain
31 a closed network of providers to furnish mental health, intellectual or developmental disabilities,
32 and substance abuse services to its enrollees. A closed network is the network of providers that
33 have contracted with the local management entity/managed care organization operating the
34 combined 1915(b) and (c) waivers."
35 SECTION 9D.13.(e) G.S. 108D-23 reads as rewritten:
36 "§ 108D-23. BH IDD tailored plan networks.
37 Entities Each entity operating a BH IDD tailored plans plan shall develop and maintain a
38 closed network of providers only for the provision of behavioral health, intellectual and
39 developmental disability, and traumatic brain injury services. A closed network is the network
40 of providers that have contracted with the entity operating a BH IDD tailored plan to furnish
41 these services to enrollees. A closed network must include all essential providers, as designated
42 in accordance with G.S. 108D-22(b), that (i) are located within the region for which the entity
43 holds a BH IDD tailored plan contract and (ii) provide any covered behavioral health, intellectual
44 and developmental disability, or traumatic brain injury service in that region."
45 SECTION 9D.13.(f) G.S. 108D-60(a)(1)d. is repealed.
46 SECTION 9D.13.(g) G.S. 122C-115.3 reads as rewritten:
47 "§ 122C-115.3. Dissolution of area authority.
48 (a) Repealed by Session Laws 2013-85, s. 5(a), effective June 12, 2013.
49 (b) No county shall withdraw from an area authority nor shall an area authority be
50 dissolved without prior approval of the Secretary.

1 (b1) The Secretary shall, prior to the date that BH IDD tailored plans begin operating,
2 direct the dissolution of any area authority that does not receive an initial contract to operate a
3 BH IDD tailored plan. The Secretary shall deliver a notice of dissolution to the board of county
4 commissioners of each of the counties in the dissolved LME/MCO.
5 (c), (d) Repealed by Session Laws 2013-85, s. 5(a), effective June 12, 2013.
6 (e) Any fund balance or risk reserve available to an area authority at the time of its
7 dissolution that is not utilized to pay liabilities shall be transferred to one or more area authorities
8 contracted to operate the 1915(b)/(c) Medicaid Waiver or a BH IDD tailored plan in all or a
9 portion of the catchment area of the dissolved area authority, as directed by the Department.
10 (e1) Effective until the date that BH IDD tailored plans begin operating, if the fund balance
11 transferred from the dissolved area authority under subsection (e) of this section is insufficient
12 to constitute fifteen percent (15%) of the anticipated operational expenses arising from
13 assumption of responsibilities from the dissolved area authority, the Secretary shall guarantee the
14 operational reserves for the area authority assuming the responsibilities under the 1915(b)/(c)
15 Medicaid Waiver until the assuming area authority has reestablished fifteen percent (15%)
16 operational reserves.
17 (f), (g) Repealed by Session Laws 2013-85, s. 5(a), effective June 12, 2013.
18 (h) Effective until December 1, 2023, upon the termination of a BH IDD tailored plan
19 contract with an area authority, the Secretary shall direct the dissolution of that area authority.
20 The Secretary shall deliver a notice of dissolution to the board of county commissioners of each
21 of the counties in the dissolved area authority."
22 SECTION 9D.13.(h) No later than January 10, 2023, DHHS shall submit a report to
23 the Joint Legislative Oversight Committee on Medicaid and NC Health Choice containing
24 proposed legislative language regarding actions to be taken upon the termination of a contract
25 operated by an LME/MCO for (i) a BH IDD tailored plan, (ii) a capitated arrangement authorized
26 by G.S. 108D-60(d), or (iii) the 1915(b)/(c) combined Medicaid waiver. The proposed legislation
27 shall address at least all of the following:
28 (1) The transition of the Medicaid coverage under the terminated contract to one
29 or more other entities.
30 (2) The transfer of all or a portion of any fund balance or risk reserve balance
31 from the LME/MCO that held the contract that was terminated to one or more
32 other entities.
33 (3) For counties in the catchment area of the LME/MCO that held the contract
34 that was terminated, the future alignment of those counties with one or more
35 LME/MCOs.
36 (4) Any revisions to the definition of catchment area in Chapter 122C of the
37 General Statutes that are needed.
38
39 MISCELLANEOUS DHB-RELATED TECHNICAL CORRECTIONS
40 SECTION 9D.14.(a) G.S. 108D-40(a)(12) reads as rewritten:
41 "(12) Recipients with a serious mental illness, a serious emotional disturbance, a
42 severe substance use disorder, an intellectual/developmental disability, or who
43 have survived a traumatic brain injury and who are receiving traumatic brain
44 injury services, who are on the waiting list for the Traumatic Brain Injury
45 waiver, or whose traumatic brain injury otherwise is a knowable fact, until BH
46 IDD tailored plans become operational, at which time this population will be
47 enrolled with a BH IDD tailored plan in accordance with G.S. 108D-60(10).
48 G.S. 108D-60(a)(10). Recipients in this category shall have the option to
49 voluntarily enroll with a PHP, provided that (i) a recipient electing to enroll
50 with a PHP would only have access to the behavioral health services covered
51 by PHPs according to G.S. 108D-35(1) and would no longer have access to

1 the behavioral health services excluded under G.S. 108D-35(1) and (ii) the
2 recipient's informed consent shall be required prior to the recipient's
3 enrollment with a PHP. Recipients in this category shall include, at a
4 minimum, recipients who meet any of the following criteria:
5 …."
6 SECTION 9D.14.(b) Effective retroactively to January 1, 2022,
7 G.S. 108A-146.12A, as enacted by Section 9D.13A(c) of S.L. 2021-180, reads as rewritten:
8 "§ 108A-146.12A. Home and community-based services component.
9 The home and community-based services component is thirty-five million five hundred
10 thousand dollars ($35,500,000) for each quarter of the 2023-2024 State fiscal year. For each
11 subsequent State fiscal year, the postpartum coverage home and community-based services
12 component shall be increased over the prior year's quarterly amount by the Medicare Economic
13 Index."
14 SECTION 9D.14.(c) Effective retroactively to May 4, 2020, Section 4.8 of S.L.
15 2020-4 reads as rewritten:
16 "SECTION 4.8. Effective no later than June 1, 2020, upon approval by the Centers for
17 Medicare and Medicaid Services, the eligibility requirements for the Disabled Adult Child
18 Passalong authorized under section 1634 of the Social Security Act for the Medicaid program
19 shall consist of only the following four requirements:
20 …."
21 SECTION 9D.14.(d) Section 9A of S.L. 2015-245, as amended by Section 2(e1) of
22 S.L. 2016-121 and Section 9D.14 of S.L. 2021-180, reads as rewritten:
23 "SECTION 9A. Eligibility for Parents or Caretaker Relatives of Children in Foster Care. –
24 DHHS is directed to seek approval from CMS through either the 1115 waiver required by
25 subdivision (1) of Section 5 of this act or another federal authority to allow a parent or caretaker
26 relative, as defined in 42 C.F.R. § 435.4, to retain Medicaid eligibility when (i) the parent or
27 caretaker relative has lost custody of a child pursuant to Subchapter I of Chapter 7B of the
28 General Statutes, (ii) the child is being served temporarily by the foster care system, regardless
29 of the type of out-of-home placement, and (iii) the parent is making reasonable efforts to comply
30 with a court-ordered plan of reunification, as determined by DHHS.a court of competent
31 jurisdiction has neither found that aggravated circumstances exist in accordance with
32 G.S. 7B-901(c) or found that a plan of reunification would be unsuccessful nor inconsistent with
33 the child's health or safety in accordance with G.S. 7B-906.1(d)."
34 SECTION 9D.14.(e) G.S. 108A-54.3A(2a) reads as rewritten:
35 "(2a) A parent or caretaker relative, as defined in 42 C.F.R. § 435.4, who has
36 qualified under subdivisions (1) and (2) of this section shall retain eligibility
37 for Medicaid under this section so long as all of the following criteria are met:
38 a. The parent or caretaker relative has lost legal custody of a child
39 pursuant to Subchapter I of Chapter 7B of the General Statutes.
40 b. A child of the parent or caretaker relative is temporarily in the legal
41 custody of State-sponsored foster care or temporarily receiving foster
42 care assistance under Title IV-E of the Social Security Act.
43 c. The parent is making reasonable efforts to comply with a court-
44 ordered plan of reunification, as determined by the Department.A
45 court of competent jurisdiction has neither found that aggravated
46 circumstances exist in accordance with G.S. 7B-901(c) nor found that
47 a plan of reunification would be unsuccessful or inconsistent with the
48 child's health or safety in accordance with G.S. 7B-906.1(d).
49 d. The parent or caretaker relative continues to meet the family income
50 requirements under subdivision (1) or (2) of this section."
51 SECTION 9D.14.(f) Section 9D.10(a) of S.L. 2021-180 reads as rewritten:

1 "SECTION 9D.10.(a) Beginning July 1, 2022, the copayments for Medicaid services that
2 are subject to a copayment under the Medicaid State Plan shall be increased to four dollars
3 ($4.00). This section does not apply to services provided under sections 1905(a)(1) through
4 1905(a)(5) and under section 1905(a)(7) of the Social Security Act or to or recipients prohibited
5 by federal law from cost-sharing requirements."
6 SECTION 9D.14.(g) Section 9D.15B of S.L. 2021-180 reads as rewritten:
7 "SECTION 9D.15B. Beginning January 1, 2022, the As soon as practicable after the receipt
8 of approval from the Centers for Medicare and Medicaid Services, the Department of Health and
9 Human Services, Division of Health Benefits, shall increase to eleven dollars and twenty-five
10 cents ($11.25) per 15 minutes the rate paid for private duty nursing services pursuant to Medicaid
11 Clinical Coverage Policies 3G-1: Private Duty Nursing for Beneficiaries Age 21 and Older and
12 Older, 3G-2: Private Duty Nursing for Beneficiaries Under 21 Years of Age.Age, and 3K-1:
13 Community Alternatives Program for Children (CAP/C)."
14
15 ELIMINATE NC HEALTH CHOICE AND MOVE BENEFICIARIES TO MEDICAID
16 SECTION 9D.15.(a) Effective when this act becomes law, the Department of Health
17 and Human Services is directed to submit any necessary State Plan amendments to the Centers
18 for Medicare and Medicaid Services (CMS) for the merger of the NC Health Choice program
19 into the North Carolina Medicaid program to occur no later than June 30, 2023. This merger
20 would result in the elimination of NC Health Choice. All children currently eligible for NC
21 Health Choice would then be eligible for Medicaid as of the date approved for the elimination by
22 CMS.
23 SECTION 9D.15.(b) Part 8 of Article 2 of Chapter 108A of the General Statutes is
24 repealed.
25 SECTION 9D.15.(c) G.S. 108A-54.3A reads as rewritten:
26 "§ 108A-54.3A. Eligibility categories and income thresholds.
27 The Department shall provide Medicaid coverage for individuals in accordance with federal
28 statutes and regulations and specifically shall provide coverage for the following populations:
29 …
30 (3) Children under through the age of 6 18 with family incomes equal to or less
31 than two hundred ten percent (210%) of the federal poverty guidelines.
32 (4) Children aged 6 through 18 with family incomes equal to or less than one
33 hundred thirty-three percent (133%) of the federal poverty guidelines.
34 …."
35 SECTION 9D.15.(d) G.S. 7B-2717(a) reads as rewritten:
36 "(a) The juvenile court counselor shall work with the parent, guardian, or custodian of the
37 juvenile receiving juvenile consultation services to obtain for the juvenile any medical, surgical,
38 psychiatric, psychological, or other evaluation or treatment as needed or recommended as part of
39 the juvenile consultation process. The juvenile court counselor shall work with the parent,
40 guardian, or custodian of the juvenile and other funding resources to find a means for paying for
41 such services, including helping the parent, guardian, or custodian of the juvenile to apply for
42 Health Choice and/or Medicaid.benefits under the North Carolina Medicaid program."
43 SECTION 9D.15.(e) G.S. 105-164.13(13d) reads as rewritten:
44 "(13d) Sales of diapers or incontinence underpads on prescription by an enrolled
45 State Medicaid/Health Choice Medicaid provider for use by beneficiaries of
46 the State Medicaid program when the provider is reimbursed by the State
47 Medicaid program or a Medicaid managed care organization, as defined in 42
48 U.S.C. § 1396b(m)."
49 SECTION 9D.15.(f) G.S. 108A-24(3e) reads as rewritten:
50 "(3e) "Fee-for-service program" means a payment model for the Medicaid and NC
51 Health Choice programs program operated by the Department of Health and

1 Human Services pursuant to its authority under Part 6 and Part 8 of Article 2
2 of Chapter 108A of the General Statutes in which the Department pays
3 enrolled providers for services provided to Medicaid and NC Health Choice
4 recipients rather than contracting for the coverage of services through a
5 capitated payment arrangement."
6 SECTION 9D.15.(g) Subsections (a) and (b) of G.S. 108A-54.1B are repealed.
7 SECTION 9D.15.(h) G.S. 108A-57(c) is repealed.
8 SECTION 9D.15.(i) G.S. 108A-70.51 reads as rewritten:
9 "§ 108A-70.51. Reporting.
10 Beginning with the calendar year 2020, no later than March 1 of each year, the Department
11 shall submit a report to the Joint Legislative Oversight Committee on Medicaid and NC Health
12 Choice, Medicaid, the Fiscal Research Division, and the State Auditor that contains the following
13 information about the prior calendar year:
14 …."
15 SECTION 9D.15.(j) G.S. 108A-79(c)(4a) reads as rewritten:
16 "(4a) With regard to the Medicaid and NC Health Choice programs program only,
17 the option to request an expedited appeal in accordance with subsection (j1)
18 of this section."
19 SECTION 9D.15.(k) G.S. 108C-2 reads as rewritten:
20 "§ 108C-2. Definitions.
21 The following definitions apply in this Chapter:
22 …
23 (2) Applicant. – An individual, partnership, group, association, corporation,
24 institution, or entity that applies to the Department for enrollment as a provider
25 in the North Carolina Medical Assistance Program or the North Carolina
26 Health Insurance Program for Children.Medicaid program.
27 (3) Department. – The North Carolina Department of Health and Human
28 Services, its legally authorized agents, contractors, or vendors who acting
29 within the scope of their authorized activities, assess, authorize, manage,
30 review, audit, monitor, or provide services pursuant to Title XIX or XXI of
31 the Social Security Act, the North Carolina State Plan of Medical Assistance,
32 the North Carolina State Plan of the Health Insurance Program for Children,
33 or any waivers of the federal Medicaid Act granted by the United States
34 Department of Health and Human Services.
35 …
36 (6) Health Choice. – The Health Insurance Program for Children authorized by
37 G.S. 108A-70.25 and as set forth in the North Carolina State Plan of the Health
38 Insurance Program for Children.
39 (7) Managing employee. – As defined in 42 C.F.R. § 455.101.
40 …
41 (10) Provider. – An individual, partnership, group, association, corporation,
42 institution, or entity required to enroll in the North Carolina Medical
43 Assistance Program or the North Carolina Health Insurance Program for
44 Children Medicaid program to provide services, goods, supplies, or
45 merchandise to a Medicaid or Health Choice recipient.
46 (11) Revalidation. – The reenrollment of a provider in the Medicaid or Health
47 Choice programs program as required under federal law.
48 …."
49 SECTION 9D.15.(l) G.S. 108C-4 reads as rewritten:
50 "§ 108C-4. Criminal history record checks for certain providers.
51 …

1 (b) The Division shall deny enrollment or terminate the enrollment of a provider where
2 any person with a five percent (5%) or greater direct or indirect ownership interest in the provider
3 has been convicted of a criminal offense related to that person's involvement with the Medicare,
4 Medicaid, or Health Choice program any Children's Health Insurance Program in the last 10
5 years, unless the Division determines that denial or termination of enrollment is not in the best
6 interests of Medicaid and the State Medicaid agency documents that determination in writing.
7 The Department shall honor civil and criminal settlement agreements entered into with a provider
8 or any person with a five percent (5%) or greater direct or indirect ownership interest in the
9 provider within 10 years of the effective date of this act.
10 (c) The Division may deny enrollment or terminate the enrollment of a provider subject
11 to G.S. 108C-3(g) for any of the following offenses of the provider, an owner and/or operator,
12 owner, an operator, or an employee if, after review of the seriousness, age, and other
13 circumstances involving the offense, the Division determines it is in the best interest of the
14 integrity of the North Carolina Medicaid or Health Choice program to do so: any
15 (1) Any criminal offenses as set forth in any of the following Articles of Chapter
16 14 of the General Statutes:
17 a. Article 5, Counterfeiting and Issuing Monetary Substitutes;
18 Substitutes.
19 b. Article 5A, Endangering Executive, Legislative, and Court Officers;
20 Officers.
21 c. Article 6, Homicide; Homicide.
22 d. Article 7B, Rape and Other Sex Offenses; Offenses.
23 e. Article 8, Assaults; Assaults.
24 f. Article 10, Kidnapping and Abduction; Abduction.
25 g. Article 13, Malicious Injury or Damage by Use of Explosive or
26 Incendiary Device or Material; Material.
27 h. Article 14, Burglary and Other Housebreakings; Housebreakings.
28 i. Article 15, Arson and Other Burnings; Burnings.
29 j. Article 16, Larceny; Larceny.
30 k. Article 17, Robbery; Robbery.
31 l. Article 18, Embezzlement; Embezzlement.
32 m. Article 19, False Pretenses and Cheats; Cheats.
33 n. Article 19A, Obtaining Property or Services by False or Fraudulent
34 Use of Credit Device or Other Means; Means.
35 o. Article 19B, Financial Transaction Card Crime Act; Act.
36 p. Article 20, Frauds; Frauds.
37 q. Article 21, Forgery; Forgery.
38 r. Article 26, Offenses Against Public Morality and Decency; Decency.
39 s. Article 26A, Adult Establishments; Establishments.
40 t. Article 27, Prostitution; Prostitution.
41 u. Article 28, Perjury; Perjury.
42 v. Article 29, Bribery; Bribery.
43 w. Article 31, Misconduct in Public Office; Office.
44 x. Article 35, Offenses Against the Public Peace; Peace.
45 y. Article 36A, Riots and Civil Disorders; Disorders.
46 z. Article 39, Protection of Minors; Minors.
47 aa. Article 40, Protection of the Family; Family.
48 bb. Article 59, Public Intoxication; and Intoxication.
49 cc. Article 60, Computer-Related Crime. The crimes also include
50 possession

1 (2) Possession or sale of drugs in violation of the North Carolina Controlled
2 Substances Act, Article 5 of Chapter 90 of the General Statutes, and
3 alcohol-relatedStatutes.
4 (3) Alcohol-related offenses such as sale to underage persons in violation of G.S.
5 18B-302, or driving G.S. 18B-302.
6 (4) Driving while impaired in violation of G.S. 20-138.1 through G.S. 20-138.5."
7 SECTION 9D.15.(m) G.S. 108C-5 reads as rewritten:
8 "§ 108C-5. Payment suspension and audits utilizing extrapolation.
9 …
10 (b) In addition to the procedures for suspending payment set forth at 42 C.F.R. § 455.23,
11 the Department may also suspend payment to any provider that (i) owes a final overpayment,
12 assessment, or fine to the Department and has not entered into an approved payment plan with
13 the Department or (ii) has had its participation in the Medicaid program or former NC Health
14 Choice programs program suspended or terminated by the Department. For purposes of this
15 section, a suspension or termination of participation does not become final until all administrative
16 appeal rights have been exhausted and shall not include any agency decision that is being
17 contested at the Department or the Office of Administrative Hearings or in Superior Court
18 provided that the Superior Court has entered a stay pursuant to the provisions of G.S. 150B-48.
19 …
20 (d) Providers whose participation in the Medicaid program or former NC Health Choice
21 programs program has been suspended or terminated shall have all payments suspended
22 beginning on the thirty-first day after the suspension or termination becomes final.
23 …."
24 SECTION 9D.15.(n) G.S. 108C-9 reads as rewritten:
25 "§ 108C-9. Provider enrollment criteria.
26 (a) Applicants who submit an initial application for enrollment in North Carolina
27 Medicaid or North Carolina Health Choice shall be required to submit an attestation and complete
28 trainings prior to being enrolled.
29 (b) The applicant's attestation shall contain a statement that the applicant's organization
30 has met the minimum business requirements necessary to comply with all federal and State
31 requirements governing the Medicaid and Children's Health Insurance programs, does not owe
32 any outstanding taxes or fines to the U.S. or North Carolina Departments of Revenue or Labor
33 or the Division of Employment Security (DES) of the Department of Commerce, does not owe
34 any final overpayment, assessment, or fine to the North Carolina Medicaid or North Carolina
35 Health Choice programs program, the former NC Health Choice program, or any other State
36 Medicaid or Children's Health Insurance program, and has implemented a corporate compliance
37 program as required under federal law. The Department shall set forth by rule the minimum
38 business requirements necessary to comply with all federal and State requirements governing the
39 Medicaid and or Children's Health Insurance Program.programs.
40 (c) Prior to being initially enrolled in the North Carolina Medicaid or Health Choice
41 programs, program, an applicant's representative shall attend trainings as designated by the
42 Department in rules, including, but not limited to, the following:
43 …
44 Online training shall be available for completion through the Department's Web site. The
45 Department may charge a fee to recover costs of such trainings.
46 (d) Making any materially false or misleading statement in an attestation or enrollment
47 application shall be grounds for denial, termination of, or permanent exclusion from enrollment
48 in the North Carolina Medicaid or North Carolina Health Choice programs.program."
49 SECTION 9D.15.(o) G.S. 108C-13 reads as rewritten:
50 "§ 108C-13. Certain waivers of Medicaid and Health Choice co-payments copayments
51 prohibited.

1 (a) No provider that has obtained a permit pursuant to G.S. 90-85.21 or G.S. 90-85-21A
2 shall waive the collection of co-payments copayments owed by Medicaid recipients of Medicaid
3 and Health Choice, as required by the respective program, with the intent to induce recipients to
4 purchase, lease, or order items or services from the permitted provider. For enforcement
5 purposes, a permitted provider that waives a co-payment copayment owed by a Medicaid
6 recipient of Medicaid or Health Choice is in violation of this subsection regardless of the
7 monetary amount that is waived by the permitted provider. A permitted provider shall not be in
8 violation of this subsection if the provider waives a co-payment copayment owed by a Medicaid
9 recipient of Medicaid or Health Choice for any of the following reasons:
10 (1) The waiver is authorized under the Medical Assistance Program or the North
11 Carolina Health Insurance Program for Children.North Carolina Medicaid
12 program.
13 …
14 (b) A violation of this section shall result in suspension or termination by the Department
15 of a permitted provider's participation in the North Carolina Medicaid and Health Choice
16 program in accordance with administrative sanctions and remedial measures established by the
17 Department for violations of this section."
18 SECTION 9D.15.(p) G.S. 108D-1(1) reads as rewritten:
19 "(1) Adverse benefit determination. – As defined in 42 C.F.R. § 438.400(b). In
20 accordance with 42 C.F.R. § 457.1260, this definition applies to NC Health
21 Choice beneficiaries in the same manner as it applies to Medicaid
22 beneficiaries."
23 SECTION 9D.15.(q) G.S. 108D-1(5) reads as rewritten:
24 "(5) Beneficiary. – A person to whom or on whose behalf medical assistance or
25 assistance through the North Carolina Health Choice for Children program is
26 granted under Article 2 of Chapter 108A of the General Statutes."
27 SECTION 9D.15.(r) G.S. 108D-1(16) reads as rewritten:
28 "(16) Fee-for-service program. – A payment model for the Medicaid and NC Health
29 Choice programs program operated by the Department of Health and Human
30 Services pursuant to its authority under Part 6 and Part 8 of Article 2 of
31 Chapter 108A of the General Statutes in which the Department pays enrolled
32 providers for services provided to Medicaid and NC Health Choice
33 beneficiaries rather than contracting for the coverage of services through a
34 capitated payment arrangement."
35 SECTION 9D.15.(s) G.S. 108D-2 reads as rewritten:
36 "§ 108D-2. Scope; applicability of this Chapter.
37 This Chapter applies to every managed care entity, applicant, enrollee, provider of emergency
38 services, and network provider of a managed care entity. This Chapter does not apply to Medicaid
39 or NC Health Choice services delivered through the fee-for-service program. Nothing in this
40 Chapter shall be construed to grant a NC Health Choice beneficiary benefits in excess of what is
41 required by G.S. 108A-70.21."
42 SECTION 9D.15.(t) G.S. 108D-13(c) reads as rewritten:
43 "(c) Continuation of Benefits. – A managed care entity shall continue the benefits of a
44 Medicaid enrollee during the pendency of a managed care entity level appeal to the same extent
45 required under 42 C.F.R. § 438.420. In accordance with 42 C.F.R. § 457.1260, NC Health Choice
46 enrollees shall not be entitled to continuation of benefits."
47 SECTION 9D.15.(u) G.S. 108D-14(c) reads as rewritten:
48 "(c) Continuation of Benefits. – A managed care entity shall continue the benefits of a
49 Medicaid enrollee during the pendency of an expedited managed care entity level appeal to the
50 extent required under 42 C.F.R. § 438.420. In accordance with 42 C.F.R. § 457.1260, NC Health
51 Choice enrollees shall not be entitled to continuation of benefits."

1 SECTION 9D.15.(v) G.S. 108D-15(g) reads as rewritten:
2 "(g) Continuation of Benefits. – A managed care entity shall continue the benefits of a
3 Medicaid enrollee during the pendency of an appeal to the same extent required under 42 C.F.R.
4 § 438.420. In accordance with 42 C.F.R. § 457.1260, NC Health Choice enrollees shall not be
5 entitled to continuation of benefits. Notwithstanding any other provision of State law, the
6 administrative law judge does not have the power to order and shall not order a managed care
7 entity to continue benefits in excess of what is required by 42 C.F.R. § 438.420."
8 SECTION 9D.15.(w) G.S. 108D-35 reads as rewritten:
9 "§ 108D-35. Services covered by PHPs.
10 (a) Capitated PHP contracts shall cover all Medicaid and NC Health Choice services,
11 including physical health services, prescription drugs, long-term services and supports, and
12 behavioral health services for NC Health Choice recipients, services, except as otherwise
13 provided in this section.
14 (b) The capitated contracts required by this section shall not cover:cover any of the
15 following:
16 …."
17 SECTION 9D.15.(x) G.S. 143-682(a) reads as rewritten:
18 "(a) There is established the Commission on Children With Special Health Care Needs.
19 The Department of Health and Human Services shall provide staff services and space for
20 Commission meetings. The purpose of the Commission is to monitor and evaluate the availability
21 and provision of health services to special needs children in this State, and to monitor and
22 evaluate services provided to special needs children under the Health Insurance Program for
23 Children established under Part 8 of Article 2 of Chapter 108A of the General Statutes.State."
24 SECTION 9D.15.(y) G.S. 150B-1(e)(17) is repealed.
25 SECTION 9D.15.(z) As a result of the repeal of Part 8 of Article 2 of Chapter 108A
26 of the General Statutes under this section, the Revisor of Statutes shall eliminate the following
27 phrases from wherever they appear in the sections of the General Statutes not amended by this
28 section:
29 (1) Health Choice.
30 (2) NC Health Choice.
31 (3) NC Health Choice program.
32 (4) North Carolina Health Choice.
33 (5) North Carolina Health Insurance Program for Children.
34 When eliminating these phrases, the Revisor of Statutes may adjust subject and verb
35 agreement and the placement of conjunctions and may eliminate extraneous conjunctions.
36 SECTION 9D.15.(aa) Article 23B of Chapter 120 of the General Statutes reads as
37 rewritten:
38 "Article 23B.
39 "Joint Legislative Oversight Committee on Medicaid and NC Health Choice.Medicaid.
40 "§ 120-209. Creation and membership of Joint Legislative Oversight Committee on
41 Medicaid and NC Health Choice.Medicaid.
42 (a) The Joint Legislative Oversight Committee on Medicaid and NC Health Choice is
43 established. The Committee consists of 14 members as follows:
44 (1) Seven members of the Senate appointed by the President Pro Tempore of the
45 Senate, at least two of whom are members of the minority party.
46 (2) Seven members of the House of Representatives appointed by the Speaker of
47 the House of Representatives, at least two of whom are members of the
48 minority party.
49 …
50 "§ 120-209.1. Purpose and powers of Committee.

1 (a) The Joint Legislative Oversight Committee on Medicaid and NC Health Choice shall
2 examine budgeting, financing, administrative, and operational issues related to the Medicaid and
3 NC Health Choice programs program administered by the Department of Health and Human
4 Services.
5 (b) The Committee may make periodic reports, including recommendations, to a regular
6 session of the General Assembly on issues related to Medicaid and NC Health Choice
7 programs.Medicaid.
8 …
9 "§ 120-209.3. Additional powers.
10 The Joint Legislative Oversight Committee on Medicaid and NC Health Choice, Medicaid,
11 while in discharge of official duties, shall have access to any paper or document and may compel
12 the attendance of any State official or employee before the Committee or secure any evidence
13 under G.S. 120-19. In addition, G.S. 120-19.1 through G.S. 120-19.4 shall apply to the
14 proceedings of the Committee as if it were a joint committee of the General Assembly.
15 "§ 120-209.4. Reports to Committee.
16 Whenever the Department of Health and Human Services, or any division within the
17 Department, is required by law to report to the General Assembly or to any of its permanent,
18 study, or oversight committees or subcommittees on matters relating to the Medicaid and NC
19 Health Choice programs, program, the Department shall transmit a copy of the report to the
20 cochairs of the Joint Legislative Oversight Committee on Medicaid and NC Health
21 Choice.Medicaid."
22 SECTION 9D.15.(bb) The Revisor of Statutes shall change all references to the
23 Joint Legislative Oversight Committee on Medicaid and NC Health Choice wherever it appears
24 in the General Statutes to instead be references to the Joint Legislative Oversight Committee on
25 Medicaid.
26 SECTION 9D.15.(cc) Except as otherwise provided, this section is effective on the
27 date that the NC Health Choice program is eliminated, as approved by the Centers for Medicare
28 and Medicaid Services (CMS) in accordance with subsection (a) of this section. The Secretary
29 of the Department of Health and Human Services shall report to the Revisor of Statutes and the
30 Fiscal Research Division when the elimination of the NC Health Choice program has been
31 approved by CMS and the specific date approved for that elimination to take place.
32
33 PART IX-E. HEALTH SERVICE REGULATION
34
35 HIRING OF HEALTH CARE PERSONNEL BY NURSING FACILITIES TO PERFORM
36 NURSE AIDE DUTIES
37 SECTION 9E.1.(a) G.S. 131E-255 is amended by adding a new subsection to read:
38 "(f) Notwithstanding the provisions of this section or any other provision of law, a nursing
39 facility may employ or contract with health care personnel who are not listed on the Nurse Aide
40 Registry to perform the duties of a nurse aide for a period of up to four months, consistent with
41 subsection (d) of 42 C.F.R. § 483.35. As used in this subsection, "health care personnel" means
42 unlicensed staff that have direct access to residents, clients, or their property. Direct access
43 includes any unlicensed staff that, during the course of employment, have the opportunity for
44 direct contact with an individual or an individual's property when that individual is a resident,
45 client, or person to whom the nursing facility provides services."
46 SECTION 9E.1.(b) The Medical Care Commission shall, to the extent necessary,
47 amend its rules pertaining to the employment or contracting of nurse aides by nursing facilities
48 consistent with the provisions of subsection (f) of G.S. 131E-255, as enacted by this section.
49 SECTION 9E.1.(c) This section is effective when it becomes law, and beginning on
50 that date, nursing facilities may employ or contract with health care personnel who are not listed

1 on the Nurse Aide Registry to perform the duties of a nurse aide for a period of up to four months,
2 as provided in subsection (f) of G.S. 131E-255, as enacted by this section.
3
4 EMERGENCY FLEXIBILITIES FOR CERTAIN FACILITIES AND SERVICES
5 REGULATED BY THE DIVISION OF HEALTH SERVICE REGULATION
6 SECTION 9E.2.(a) Article 2 of Chapter 122C of the General Statutes is amended
7 by adding a new section to read:
8 "§ 122C-27.5. Waiver of rules and increase in bed capacity during an emergency.
9 In the event of a declaration of a state of emergency by the Governor in accordance with
10 Article 1A of Chapter 166A of the General Statutes, a declaration of a national emergency by the
11 President of the United States, a declaration of a public health emergency by the Secretary of the
12 United States Department of Health and Human Services; or to the extent necessary to allow for
13 consistency with any temporary waiver or modification issued by the Secretary of the United
14 States Department of Health and Human Services or the Centers for Medicare and Medicaid
15 Services under section 1135 or 1812(f) of the Social Security Act; or when the Division of Health
16 Service Regulation determines the existence of an emergency that poses a risk to the health or
17 safety of clients, the Division of Health Service Regulation may do either or both of the
18 following:
19 (1) Temporarily waive any rules adopted to implement this Article.
20 (2) Allow a facility licensed under this Article to temporarily increase its bed
21 capacity."
22 SECTION 9E.2.(b) G.S. 131D-7 reads as rewritten:
23 "§ 131D-7. Waiver of rules for certain adult care homes providing shelter or services and
24 increase in bed capacity during disaster or an emergency.
25 …
26 (a1) In the event of a declaration of a state of emergency by the Governor in accordance
27 with Article 1A of Chapter 166A of the General Statutes, a declaration of a national emergency
28 by the President of the United States, a declaration of a public health emergency by the Secretary
29 of the United States Department of Health and Human Services; or to the extent necessary to
30 allow for consistency with any temporary waiver or modification issued by the Secretary of the
31 United States Department of Health and Human Services or the Centers for Medicare and
32 Medicaid Services under section 1135 or 1812(f) of the Social Security Act; or when the Division
33 of Health Service Regulation determines the existence of an emergency that poses a risk to the
34 health or safety of residents, the Division of Health Service Regulation may do either or both of
35 the following:
36 (1) Temporarily waive any rules of the Commission pertaining to adult care
37 homes.
38 (2) Allow an adult care home to temporarily increase its bed capacity.
39 …."
40 SECTION 9E.2.(c) G.S. 131E-84 reads as rewritten:
41 "§ 131E-84. Waiver of rules for hospitals that provide temporary shelter or temporary
42 services and increase in bed capacity during a disaster or an emergency.
43 …

1 health or safety of patients, the Division of Health Service Regulation may do either or both of
2 the following:
3 (1) Temporarily waive any rules of the Commission pertaining to hospitals.
4 (2) Notwithstanding G.S. 131E-183, allow a hospital to temporarily increase its
5 bed capacity.
6 …."
7 SECTION 9E.2.(d) G.S. 131E-112 reads as rewritten:
8 "§ 131E-112. Waiver of rules for health care facilities that provide temporary shelter or
9 temporary services and increase in bed capacity during a disaster or an
10 emergency.
11 …
20 health or safety of patients or residents, the Division of Health Service Regulation may do either
21 or both of the following:
22 (1) Temporarily waive any rules of the Commission pertaining to facilities or
23 home care agencies.
24 (2) Allow a facility or nursing home to temporarily increase its bed capacity.
25 …."
26 SECTION 9E.2.(e) G.S. 131E-158 reads as rewritten:
27 "§ 131E-158. Credentialed personnel required.required; temporary waiver of
28 requirements during an emergency.
29 (a) Every ambulance when transporting a patient shall be occupied at a minimum by all
30 of the following:
31 (1) At least one emergency medical technician who shall be responsible for the
32 medical aspects of the mission prior to arrival at the medical facility, assuming
33 no other individual with higher credentials is available.
34 (2) One emergency medical responder who is responsible for the operation of the
35 vehicle and rendering assistance to the emergency medical technician.
36 An ambulance owned and operated by a licensed health care facility that is used solely to
37 transport sick or infirm patients with known nonemergency medical conditions between facilities
38 or between a residence and a facility for scheduled medical appointments is exempt from the
39 requirements of this subsection.
41 with Article 1 of Chapter 166A of the General Statutes, a declaration of a national emergency by
42 the President of the United States, a declaration of a public health emergency by the Secretary of
43 the United States Department of Health and Human Services, or a determination by the North
44 Carolina Office of Emergency Medical Services of the existence of an emergency that poses a
45 risk to the health or safety of patients, the North Carolina Office of Emergency Medical Services
46 may temporarily waive the requirements of subsection (a) of this section and allow ambulances
47 to transport patients with a minimum of the following:
48 (1) At least one emergency medical technician who shall be responsible for all
49 the medical aspects of the mission prior to arrival at the medical facility.
50 (2) A noncredentialed, licensed driver who has been screened in accordance with
51 protocols approved by the EMS system and the North Carolina Office of

1 Emergency Medical Services, and who shall be responsible for the operation
2 of the vehicle. A noncredentialed, licensed driver shall be responsible only for
3 operation of the vehicle and shall not be responsible for any medical aspects
4 of the mission or any patient care.
5 (b) The Commission shall adopt rules setting forth exemptions to the requirements stated
6 in subsection (a) of this section applicable to situations where exemptions are considered by the
7 Commission to be in the public interest."
8 SECTION 9E.2.(f) Article 7 of Chapter 131E of the General Statutes is amended by
9 adding a new section to read:
10 "§ 131E-161.5. Waiver of rules during an emergency.
19 safety of patients, the Division of Health Service Regulation may temporarily waive any rules of
20 the Commission pertaining to emergency medical services."
21 SECTION 9E.2.(g) Article 10 of Chapter 131E of the General Statutes is amended
22 by adding a new section to read:
23 "§ 131E-208. Waiver of rules and increase in bed capacity during an emergency.
32 safety of patients or residents, the Division of Health Service Regulation may do either or both
33 of the following:
34 (1) Temporarily waive any rules of the Commission pertaining to hospices,
35 hospice inpatient facilities, and hospice residential care facilities.
36 (2) Allow a hospice inpatient facility or hospice residential care facility to
37 temporarily increase its bed capacity."
38 SECTION 9E.2.(h) G.S. 131E-255, as amended by Section 9E.1 of this act, reads
39 as rewritten:
40 "§ 131E-255. Nurse Aide Registry.Registry; waiver of rules during an emergency.
41 …
42 (g) In the event of a declaration of a state of emergency by the Governor in accordance
50 health or safety of patients or residents of a nursing facility, the Division of Health Service

1 Regulation may temporarily waive any rules of the Commission pertaining to the nurse aide
2 registry."
3 SECTION 9E.2.(i) This section becomes effective on the date Executive Order No.
4 116 (Declaration of a State of Emergency to Coordinate Response and Protective Actions to
5 Prevent the Spread of COVID-19) expires or is rescinded.
6
7 PART IX-F. MENTAL HEALTH/DEVELOPMENTAL DISABILITIES/SUBSTANCE
8 ABUSE SERVICES
9
10 USE OF OPIOID SETTLEMENT FUNDS
11 SECTION 9F.1. Section 9F.1 of S.L. 2021-180 reads as rewritten:
12 "SECTION 9F.1.(a) The Opioid Abatement Reserve (Reserve) is established in the General
13 Fund to maintain (i) funds received by the State as a beneficiary of the final consent judgment
14 resolving the case, State of North Carolina, ex rel. Joshua H. Stein, Plaintiff v. McKinsey and
15 Company, Inc., in the General Court of Justice, Superior Court Division, Wake County and
16 County, (ii) any other funds received by the State as a result of a settlement, as defined in
17 G.S. 114-2.4A, relating to claims regarding the manufacturing, marketing, distribution,
18 dispensing, or sale of opioids.opioids, and (iii) funds received by the State as a beneficiary of a
19 confirmation order by a bankruptcy court relating to claims regarding the manufacturing,
20 marketing, distribution, dispensing, or sale of opioids.
21 Monies in the Reserve shall be made available to (i) cover the costs incurred by the State in
22 investigating and pursuing these claims and (ii) to abate and remediate the harms caused to North
23 Carolina and its citizens by the opioid epidemic. Funds from the Reserve may be allocated or
24 expended only by an act of appropriation by the General Assembly.
25 "SECTION 9F.1.(a1) The Opioid Abatement Fund (Fund) is created in the Department of
26 Health and Human Services (Department) as a special fund consisting of all interest and
27 investment earnings received on monies in the Fund. The State Controller shall transfer from the
28 Reserve to the Fund the sum of fifteen million seven hundred thirty-five thousand four hundred
29 ninety-six dollars ($15,735,496) for the 2021-2022 fiscal year and the sum of eight hundred
30 twelve thousand two hundred fifty dollars ($812,250) for the 2022-2023 fiscal year. These funds
31 are appropriated to the Department of Health and Human Services to be used and allocated as set
32 forth in subsection (b) of this section.
33 "SECTION 9F.1.(b) During the 2021-2023 fiscal biennium, the funds appropriated to the
34 Department of Health and Human Services by subsection (a) (a1) of this section shall be used to
35 respond to the negative impacts of the opioid epidemic within the State of North Carolina, as
36 follows:
37 (1) To expand employment and transportation supports through innovative pilot
38 programs in industries in North Carolina that suffered the greatest job losses
39 during the COVID-19 pandemic and are most relied upon by individuals
40 recovering from opioid use disorders to reenter the workforce, such as the food
41 service industry, the hotel and lodging industry, and the entertainment
42 industry. These funds may be used to support all of the following:
43 a. Employment support services for individuals in recovery from opioid
44 use disorder, such as job application support and placement with
45 partnering employers, with emphasis on supporting innovative pilot
46 programs to develop a more robust workforce in rural areas of the
47 State.
48 b. Training and development funding to encourage a consortium of
49 public and private employers, workforce development boards, and
50 vocational services providers to develop workplace recovery friendly
51 ecosystems.

1 c. Transportation support services to enable individuals recovering from
2 opioid use disorder to travel to their places of treatment and their
3 places of employment.
4 (2) To support individuals with opioid use disorder who are involved in the
5 criminal justice system through programs and initiatives designed to
6 accomplish any one or more of the following:
7 a. Establishment or expansion of existing prearrest and postarrest
8 diversion programs. This includes prearrest diversion, postarrest
9 diversion, and court-based diversion through treatment or recovery
10 courts.
11 b. Establishment, expansion, or sustainment of medication-assisted
12 treatment programs that provide to individuals who are incarcerated
13 any medication approved by the United States Food and Drug
14 Administration for opioid use disorder. Programs authorized under
15 this sub-subdivision that are funded in whole or in part by the Opioid
16 Abatement Fund shall be made available to individuals who were
17 already participating in a medication-assisted treatment program prior
18 to being incarcerated, as well as to individuals who initiate
19 medication-assisted treatment during their incarceration to address an
20 opioid use disorder.
21 c. Creation or expansion of reentry programs to connect individuals
22 exiting incarceration with harm reduction, treatment, and recovery
23 supports.
24 (3) To expand evidence-based treatment supports and to improve connections to
25 care, especially for individuals hospitalized for overdose who are uninsured
26 or underinsured, through the following activities or initiatives:
27 a. Evidence-based addiction treatment, including medication-assisted
28 treatment provided by inpatient or outpatient opioid treatment
29 programs.
30 b. Expanded access to cost-effective, low-cost, or no-cost
31 medication-assisted treatment in community-based settings.
32 c. Expanded care management services, including the use of peer support
33 specialists and care navigators in local health departments, detention
34 facilities, local departments of social services, and community-based
35 settings. Any funding provided pursuant to this sub-subdivision shall
36 be used to provide care management services involving outreach to,
37 engagement with, and coordination for individuals to assist them with
38 accessing opioid use disorder treatment.
39 (4) To develop evidence-based supportive housing services, such as Housing
40 First, that are inclusive of individuals with substance use disorders. Qualifying
41 services that may be funded under this subdivision include the following:
42 a. Providing a move-in deposit, rental or utility assistance, or all of these
43 for individuals with substance use disorders who are in recovery or
44 transitioning from residential treatment or incarceration.
45 b. Providing community training sessions on tenancy rights and
46 responsibilities.
47 c. Establishing relationships with landlords to encourage the elimination
48 of preconditions for housing and to reduce potential incidences of
49 evictions due to substance misuse.
50 d. Providing other housing-related supports such as tents, sleeping bags,
51 or other supplies for outdoor living.

1 e. Funding or otherwise supporting recovery supported housing that
2 accepts individuals who are utilizing any medication approved by the
3 United States Food and Drug Administration for the treatment of
5 "SECTION 9F.1.(c) The State Controller shall transfer from the Opioid Abatement Reserve
6 to the Opioid Abatement Fund the sum of fourteen million seven hundred eighty-one thousand
7 two hundred three dollars ($14,781,203) for the 2022-2023 fiscal year. These funds are
8 appropriated to be used and allocated as follows:
9 (1) $9,225,000 to the Department of Health and Human Services to be used and
10 allocated as follows:
11 a. $1,850,000 to the Division of Mental Health, Developmental
12 Disabilities, and Substance Abuse Services for the Prescription Digital
13 Therapeutics Pilot Program authorized in Section 9F.2 of this act.
14 b. $1,000,000 to Triangle Residential Options for Substance Abusers,
15 Inc. (TROSA), a nonprofit corporation, to fund the construction of
16 additional units of housing on its Durham campus that must be used to
17 provide housing support to individuals in recovery from opioid use
18 disorder or individuals receiving Medication-Assisted Treatment for
20 c. $6,000,000 to be allocated equally among the local management
21 entities/managed care organizations (LME/MCOs) to support opioid
22 remediation programs throughout the State. The LME/MCOs shall not
23 use these funds for any purposes other than to do all of the following:
24 1. To purchase low-cost naloxone and other supplies and
25 distribute them free of charge to harm reduction programs
26 located in their respective catchment areas for the purpose of
27 reducing the number of opioid-related overdoses and deaths.
28 2. To purchase all forms of medications approved by the federal
29 Food and Drug Administration for the treatment of opioid use
30 disorder and distribute them free of charge to jails located in
31 their respective catchment areas.
32 3. To fund community-based opioid treatment programs located
33 in their respective catchment areas that provide opioid agonist
34 treatment or facilitate the provision of opioid agonist treatment
35 from other providers.
36 4. To purchase equipment for local opioid use disorder treatment
37 programs located in their respective catchment areas to enable
38 rapid analysis of opioids and other drugs causing overdose
39 outbreaks.
40 d. $375,000 to the North Carolina Association of County Commissioners
41 to facilitate local and regional strategic planning to accomplish the
42 following:
43 1. To maximize the long-term positive impact of the opioid
44 settlement funds received by the State.
45 2. To triage requests for technical assistance and deliver technical
46 assistance to counties to maximize the long-term positive
47 impact of the opioid settlement funds received by the State.
48 3. To satisfy all requirements of the Memorandum of Agreement
49 governing the use of opioid settlement funds by counties and
50 municipalities in North Carolina.

1 (2) $5,556,203 to the Board of Governors of The University of North Carolina to
2 be allocated to the University of North Carolina at Chapel Hill for the North
3 Carolina Collaboratory, to be used as follows:
4 a. $400,000 to the University of North Carolina Injury Prevention
5 Research Center to expand and operate the Community Opioid
6 Resources Engine for North Carolina (NC-CORE) as a state of the art
7 information clearinghouse for reports on the use and impact of North
8 Carolina's opioid settlement funds. These funds shall be used to
9 accomplish the following:
10 1. To develop and display high-quality resources and data to
11 assist counties and municipalities in maximizing the long-term
12 positive impact of the opioid settlement funds.
13 2. To develop and operate information portals enabling counties
14 and municipalities to transmit required reports and data
15 regarding the opioid settlement funds in a timely and efficient
16 manner.
17 3. To expand user-friendly, public-facing dashboards to ensure a
18 high level of transparency and accountability with respect to
19 the use of opioid settlement funds flowing to North Carolina
20 counties and municipalities.
21 b. $600,000 to support opioid remediation project management and
22 community partnership outreach at North Carolina Central University.
23 c. $1,900,000 to make grants available on a competitive basis to each
24 campus of the constituent institutions of The University of North
25 Carolina for opioid abatement research and development projects.
26 d. $2,656,203 to fund a research partnership concerning opioid
27 abatement with the Eshelman Institute for Innovation at the University
28 of North Carolina at Chapel Hill School of Pharmacy."
29
30 PRESCRIPTION DIGITAL THERAPEUTICS PILOT PROGRAM FOR OPIOID USE
31 DISORDER TREATMENT
32 SECTION 9F.2.(a) It is the intent of the General Assembly to combat the opioid
33 epidemic in this State by expanding access to innovative evidence-based treatments for
34 individuals with opioid use disorder. To that end, from the funds allocated in Section 9F.1 of this
35 act for a prescription digital therapeutics pilot program, the Department of Health and Human
36 Services, Division of Mental Health, Developmental Disabilities, and Substance Abuse Services
37 (DMH/DD/SAS), shall develop and administer a two-year pilot program to gauge the
38 effectiveness of prescription digital therapeutics (PDTs) authorized by the federal Food and Drug
39 Administration for the treatment of opioid use disorder.
40 SECTION 9F.2.(b) The pilot program authorized by this section shall be subject to
41 all of the following requirements and limitations:
42 (1) The pilot program shall commence no later than December 1, 2022, and
43 terminate no later than December 1, 2024.
44 (2) The DMH/DD/SAS shall determine all of the following:
45 a. The number of sites at which the pilot program will be conducted;
46 provided, however, that the sites shall include regions that are
47 geographically diverse.
48 b. Eligibility requirements for pilot program participants.
49 c. The specific types of PDTs that will be prescribed and evaluated under
50 the pilot program; provided, however, that the selected PDTs must be

1 authorized by the federal Food and Drug Administration for the
2 treatment of opioid use disorder.
3 (3) The DMH/DD/SAS may use up to one hundred fifty thousand dollars
4 ($150,000) of these allocated funds for administrative purposes.
5 SECTION 9F.2.(c) Within six months after the termination of the pilot program
6 authorized by this section, the DMH/DD/SAS shall submit a report to the Joint Legislative
7 Oversight Committee on Health and Human Services on the impact of the pilot program. The
8 report shall include at least all of the following components:
9 (1) A breakdown of all expenditures from the funds appropriated to the
10 DMH/DD/SAS for the pilot program authorized by this section.
11 (2) The number and location of pilot program sites.
12 (3) The number of pilot program participants selected to participate at each site
13 and a description of their individual opioid use disorder treatment plans prior
14 to and upon entering the pilot program.
15 (4) Identification of the specific PDTs prescribed to treat pilot program
16 participants and an evaluation of their effectiveness, as measured by
17 successful completion of their individual treatment goals.
18 (5) An explanation of whether and how the PDTs prescribed to pilot program
19 participants improved their access to treatment.
20 (6) A review of how satisfied program participants were with the PDTs prescribed
21 for their treatment.
22 (7) The impact of the pilot program on issues related to health equity and the
23 hospitalization of pilot program participants, as compared to the patient
24 population at large.
25 (8) An explanation of the successes and challenges of the pilot program.
26 (9) Any recommendations for future coverage of PDTs by State-funded
27 healthcare programs, along with a cost-benefit analysis for such coverage.
28 (10) Any other information the DMH/DD/SAS deems relevant in examining the
29 effectiveness of using PDTs to treat opioid use disorder.
30 SECTION 9F.2.(d) The funds allocated in Section 9F.1 of this act for the
31 prescription digital therapeutics pilot program authorized by this section shall not revert on June
32 30, 2023, but shall remain available for nonrecurring expenditures associated with the pilot
33 program until the date the pilot program terminates or December 1, 2024, whichever is earlier.
34
35 PART IX-G. PUBLIC HEALTH
36
37 FUNDS FOR THE OFFICE OF THE CHIEF MEDICAL EXAMINER TO INCREASE
38 THE TRANSPORTATION RATE FOR DEATH INVESTIGATIONS AND
39 AUTOPSIES AND TO INCREASE THE NUMBER OF FORENSIC PATHOLOGIST
40 POSITIONS
41 SECTION 9G.1.(a) Of the funds appropriated in this act from the General Fund to
42 the Department of Health and Human Services, Division of Public Health, Office of the Chief
43 Medical Examiner (OCME), the sum of four million seven hundred fifty thousand dollars
44 ($4,750,000) in recurring funds for the 2022-2023 fiscal year shall be used as follows:
45 (1) Three million dollars ($3,000,000) to increase the current base contract rate
46 paid by the Department to transport bodies one way for death investigations
47 or autopsies to one hundred seventy dollars ($170.00) for the first 40 miles
48 and then one dollar ($1.00) per mile after the first 40 miles.
49 (2) One million seven hundred fifty thousand dollars ($1,750,000) to create seven
50 new full-time Forensic Pathologist positions within the OCME.

1 SECTION 9G.1.(b) Subdivision (a)(1) of this section becomes effective July 1,
2 2022, and applies to contracts entered into, renewed, or amended on or after that date.
3
4 CHANGE IN COMPOSITION OF MATERNAL MORTALITY REVIEW COMMITTEE
5 SECTION 9G.2. G.S. 130A-33.60(b) reads as rewritten:
6 "(b) The Secretary shall appoint a multidisciplinary committee comprised of nine 20
7 members who represent the community, several academic disciplines disciplines, and
8 professional specializations essential to reviewing cases of mortality due to complications from
9 pregnancy or childbirth. Committee members shall serve without compensation, but may receive
10 travel reimbursement from funds available to the Department."
11
12 USE OF JUUL SETTLEMENT FUNDS
13 SECTION 9G.3.(a) Section 9G.10 of S.L. 2021-180 reads as rewritten:
14 "SECTION 9G.10.(a) The Youth Electronic Nicotine Dependence Abatement Fund (Fund)
15 is created within the Department of Health and Human Services, Division of Public Health, as a
16 nonreverting special fund. The Fund shall consist of (i) monies received by the State as a
17 beneficiary of the final consent judgment resolving the case, State of North Carolina, ex rel.
18 Joshua H. Stein, Attorney General v. Juul Labs, Inc., in the General Court of Justice, Superior
19 Court Division, Durham County (JLI Case) and (ii) all interest and investment earnings received
20 on monies in the Fund. Monies in the Fund shall be expended only by upon an act of appropriation
21 by the General Assembly and in accordance with the final consent judgment resolving the JLI
22 Case.
23 "SECTION 9G.10.(b) There is appropriated from the Youth Electronic Nicotine
24 Dependence Abatement Fund created in subsection (a) of this section to the Department of Health
25 and Human Services, Division of Public Health, the sum of thirteen million dollars ($13,000,000)
26 in nonrecurring funds for the 2021-2022 fiscal year to be used and allocated as follows:
27 (1) $2,000,000 shall be transferred to the Department of Justice to cover the costs
28 of litigation incurred by the Office of the Attorney General with respect to the
29 JLI Case.
30 (2) $4,400,000 shall be allocated for tobacco cessation media campaigns,
31 resources, and programs to help both youth and young adults who have
32 become addicted to nicotine using e-cigarettes and other tobacco/nicotine
33 products quit.
34 (3) $3,300,000 shall be allocated for evidence-based media and education
35 campaigns to prevent the initiation of tobacco use, especially with respect to
36 e-cigarettes and other new and emerging tobacco/nicotine products.
37 (4) $1,100,000 shall be allocated for data monitoring to track tobacco/nicotine use
38 and exposure among youth and young adults and populations at risk; and for
39 independent evaluation of the reach and effectiveness of the State's tobacco
40 prevention and cessation programs with respect to evidence-based programs
41 designed to help youth addicted to nicotine through e-cigarettes and other new
42 and emerging tobacco and nicotine products quit.
43 (5) $2,200,000 shall be allocated for staff, projects, and systems to educate
44 partners and stakeholders about evidence-based policy, systems, and
45 environmental change to help youth quit tobacco/nicotine products and
46 prevent initiation of tobacco/nicotine products; and to track compliance with
47 the conduct provisions set forth in Part III of the final consent judgment
48 resolving the JLI Case.
49 Funds allocated under this subsection shall remain available for expenditure as specified in
50 this subsection until expended.
51 …."

1 SECTION 9G.3.(b) This section becomes effective June 30, 2022.
2
3 FILING OF DEATH CERTIFICATES
4 SECTION 9G.4.(a) It is the intent of the General Assembly to ensure a smooth
5 transition away from a manual, paper-based process for creating death records toward a secure,
6 web-based, online electronic death registration system. Accordingly, as the Department of Health
7 and Human Services, Division of Public Health, Office of Vital Records, progresses toward
8 statewide implementation of the North Carolina Database Application for Vital Events
9 (NCDAVE) system, each local health department and each local register of deeds shall accept
10 paper death certificates through August 31, 2022.
11 SECTION 9G.4.(b) G.S. 130A-115 is amended by adding a new subsection to read:
12 "(g) Beginning September 1, 2022, death certificates shall be filed electronically with the
13 Office of Vital Records via the North Carolina Database Application for Vital Events
14 (NCDAVE) system. No individual responsible for the certification of a death pursuant to
15 subsection (c) of this section shall fail or refuse to certify the death certificate via the designated
16 electronic death registration system. Notwithstanding subsection (f) of this section, the
17 Department may impose an administrative penalty against any individual who willfully and
18 knowingly violates this requirement in the amount of two hundred fifty dollars ($250.00) for the
19 first violation, five hundred dollars ($500.00) for the second violation, and one thousand dollars
20 ($1,000) for the third and each subsequent violation."
21
22 EXTENSION OF TERMS OF NC RARE DISEASES ADVISORY COUNCIL MEMBERS
23 AND EXPANSION OF COUNCIL MEMBERSHIP
24 SECTION 9G.5.(a) G.S. 130A-33.65 reads as rewritten:
25 "§ 130A-33.65. Advisory Council on Rare Diseases; membership; terms; compensation;
26 meetings; quorum.
27 …
28 (b) Advisory Council Membership.
29 (1) Upon the recommendation of the Dean of the School of Medicine of the
30 University of North Carolina at Chapel Hill, the Secretary shall appoint
31 members to the advisory council as follows:
32 a. A physician licensed and practicing in this State with experience
33 researching, diagnosing, or treating rare diseases.
34 b. A medical researcher with experience conducting research concerning
35 rare diseases.
36 c. A registered nurse or advanced practice registered nurse licensed and
37 practicing in the State with experience treating rare diseases.
38 d. One rare diseases survivor.
39 e. One member who represents a rare diseases foundation.
40 f. One representative from each academic research institution in this
41 State that receives any grant funding for rare diseases research.
42 g. One parent of a childhood rare disease survivor.
43 (2) The chairs of the Joint Legislative Oversight Committee on Health and Human
44 Services, or the chairs' designees, shall serve on the advisory council. A
45 member of the advisory council who is designated by the chairs of the Joint
46 Legislative Oversight Committee on Health and Human Services may be a
47 member of the General Assembly.
48 (3) The Secretary, or the Secretary's designee, shall serve as an ex officio,
49 nonvoting member of the advisory council.
50 (c) Members appointed pursuant to subsection (b) of this section shall serve for a term of
51 three years, and no member shall serve more than two three consecutive terms.

1 …."
2 SECTION 9G.5.(b) This section is effective when it becomes law and applies to
3 current members of the Advisory Council on Rare Diseases.
4
5 EXPANDED ACCESS TO CLIENT-SPECIFIC INFORMATION CONTAINED IN THE
6 NORTH CAROLINA IMMUNIZATION REGISTRY
7 SECTION 9G.6. Article 6 of Chapter 130A of the General Statutes is amended by
9 "§ 130A-158.5. Access to North Carolina Immunization Registry.
10 Notwithstanding any provision of this Chapter or any other provision of law, the Department
11 shall grant access to client-specific immunization information contained within the secure,
12 web-based North Carolina Immunization Registry to the following entities; provided, however,
13 that the authorized recipient of this information shall agree, in writing, on a form prescribed by
14 the Department to maintain the confidentiality of the information:
15 (1) Prepaid health plans, as defined in G.S. 108D-1.
16 (2) Primary care case management entities, as defined in 42 C.F.R. § 438.2, as
17 amended."
18
19 AUTHORIZATION FOR STATE HEALTH DIRECTOR TO ISSUE STATEWIDE
20 STANDING ORDERS TO FACILITATE THE ADMINISTRATION OF COVID-19
21 VACCINATIONS, DIAGNOSTIC TESTS, OR OTHER TREATMENTS
22 SECTION 9G.7.(a) The State Health Director may issue a statewide standing order
23 to facilitate the administration of vaccinations, diagnostic tests, or other treatments for
24 COVID-19, or any combination of these when the State Health Director determines that a
25 statewide standing order is necessary to protect the public health, safety, and welfare of the
26 citizens of North Carolina, provided that the statewide standing order is consistent with federal
27 and State law.
28 SECTION 9G.7.(b) Any statewide standing order in effect on or before July 1, 2022,
29 concerning the administration of vaccinations, diagnostic tests, or other treatments for
30 COVID-19 shall remain in effect until rescinded by the State Health Director.
31 SECTION 9G.7.(c) This section shall not be construed to authorize the State Health
32 Director to require any citizen of North Carolina to submit to a vaccination, diagnostic test, or
33 other treatment for COVID-19.
34 SECTION 9G.7.(d) The State Health Director, acting pursuant to this section, is
35 immune from any civil or criminal liability for actions authorized by this section.
36 SECTION 9G.7.(e) This section is effective when it becomes law and expires on
37 December 31, 2023.
38
39 MODIFICATIONS TO QUARANTINE AND ISOLATION AUTHORITY
40 SECTION 9G.8.(a) G.S. 130A-145(f), as enacted by Section 19E.6(e) of S.L.
42 "(f) Notwithstanding the first sentence of subsection (d) of this section, for a period of no
43 more than seven calendar days, the State Health Director or a local health director shall have the
44 authority to determine and order that a class or category of persons need to be quarantined or
45 isolated to protect the public health. health, subject to the following limitations:
46 (1) For an order that applies statewide, the State Health Director or a local health
47 director may issue the order for a period of no more than seven days. If such
48 an order under this section applies statewide, the State Health Director may
49 move the court for extensions of the order in accordance with subsection (e)
50 of this section after the State Health Director has notified the Governor, and
51 the Governor has received the concurrence of the Council of State.

1 (2) For an order that applies less than statewide, the State Health Director or a
2 local health director may issue the order for a period of no more than 30
3 calendar days. If such an order applies less than statewide, the State Health
4 Director may move the court for extension of the order in accordance with
5 subsection (e) of this section.
6 If the State Health Director's or local health director's orders under this subsection would
7 extend the application of the class or categories in areas, when combined, to statewide
8 application, the State Health Director shall notify the Governor, and the Governor shall seek the
9 concurrence of the Council of State in accordance with this subsection prior to moving the court
10 for the extension of any of the orders."
11 SECTION 9G.8.(b) This section becomes effective January 1, 2023, and applies to
12 any order of quarantine or isolation issued on or after that date under subsection (f) of
13 G.S. 130A-145, as amended by this section.
14
15 FLEXIBILITIES FOR REACCREDITATION/RECERTIFICATION OF ASBESTOS
16 MANAGEMENT AND LEAD ABATEMENT PROFESSIONALS
17 SECTION 9G.9.(a) In order to ensure there are a sufficient number of professionals
18 accredited to perform asbestos management and lead abatement and renovation work in the State,
19 the following professionals whose accreditation or certification will expire due to their failure to
20 complete a required refresher training course shall have until 180 days after the date Executive
21 Order No. 116 (Declaration of a State of Emergency to Coordinate Response and Protective
22 Actions to Prevent the Spread of COVID-19) expires or is rescinded to complete their respective
23 refresher training requirements:
24 (1) Professionals accredited to perform asbestos management activities under
25 10A NCAC 41C .0602.
26 (2) Professionals certified to perform lead-based paint activities under 10A
27 NCAC 41C .0802.
28 (3) Dust sampling technicians certified under 10A NCAC 41C .0902(c).
29 (4) Lead-based paint renovators certified under 10A NCAC 41C .0902(d).
30 SECTION 9G.9.(b) This section becomes effective on the date Executive Order No.
31 116 (Declaration of a State of Emergency to Coordinate Response and Protective Actions to
32 Prevent the Spread of COVID-19) expires or is rescinded.
33
34 FUNDS FOR PREGNANCY CENTERS
35 SECTION 9G.10. Of the funds appropriated in this act from the Local Project
36 Reserve, established in Section 2.2 of this act, to the Department of Health and Human Services,
37 Division of Public Health, the sum of two million five hundred eighty-five thousand dollars
38 ($2,585,000) in nonrecurring funds for the 2022-2023 fiscal year shall be allocated as directed
39 grants to nonprofit pregnancy centers located in this State, according to the following schedule:
40
41 2022-2023
42 Davie Pregnancy Care Center, Inc. $260,000
43 Heartbeats – A Pregnancy Care Center, Inc. $325,000
44 Open Arms Pregnancy Support Services, Inc. $500,000
45 Salem Pregnancy Support Center, Inc. $100,000
46 H.E.L.P. Center, Inc. $150,000
47 Cabarrus Women's Center, Inc. $250,000
48 Coastal Pregnancy Care Center, Inc. $250,000
49 Havelock Pregnancy Resource Center $250,000
50 Eastern Pregnancy Information Clinic $250,000
51 International Athletes' Abolition Mission, $250,000

1 to support 1st Choice Pregnancy Resources
2 of Pamlico County
3
4 PART IX-H. SERVICES FOR THE BLIND/DEAF/HARD OF HEARING [RESERVED]
5
6 PART IX-I. SOCIAL SERVICES
7
8 LOW INCOME ENERGY ASSISTANCE PROGRAM/ALLOW FLEXIBILITY WHEN
9 ADDITIONAL FUNDS AVAILABLE
10 SECTION 9I.1. G.S. 108A-25.4(a) reads as rewritten:
11 "(a) The Low-Income Energy Assistance Program Plan developed by the Department of
12 Health and Human Services (Department) and submitted to the U.S. Department of Health and
13 Human Services shall focus the annual energy assistance payments on the elderly population age
14 60 and above with income up to one hundred thirty percent (130%) one hundred fifty percent
15 (150%) of the federal poverty level and disabled persons receiving services through the Division
16 of Aging and Adult Services. The energy assistance payment shall be paid directly to the service
17 provider by the county department of social services. The Plan for Crisis Intervention Program
18 (CIP) shall provide assistance for vulnerable populations who meet income eligibility criteria
19 established by the Department. The CIP payment shall be paid directly to the service provider by
20 the county department of social services and shall not exceed six hundred dollars ($600.00) one
21 thousand dollars ($1,000) per household in a fiscal year."
22
23 INCREASE FOSTER CARE ADMINISTRATIVE RATE WITH EXISTING FUNDS
24 SECTION 9I.2. The Department of Health and Human Services, Division of Social
25 Services, shall implement an increase to the administrative rate for foster care using available
26 funds in the foster care budget.
27
28 ADDITIONAL CHILD ADVOCACY CENTER FUNDS
29 SECTION 9I.3. Section 9I.17 of S.L. 2021-180 reads as rewritten:
30 "SECTION 9I.17. Of the funds appropriated in this act to the Department of Health and
31 Human Services, Division of Social Services, the sum of five million dollars ($5,000,000) in
32 recurring funds for each year of the 2021-2023 fiscal biennium and biennium, the sum of five
33 million dollars ($5,000,000) in nonrecurring funds for the 2021-2022 fiscal year year, and the
34 sum of three million dollars ($3,000,000) in nonrecurring funds for the 2022-2023 fiscal year
35 shall be allocated to the Children's Advocacy Centers of North Carolina, Inc., (CACNC) a
36 nonprofit organization. At least seventy-five percent (75%) of these funds shall be distributed to
37 child advocacy centers in this State that are in good standing with CACNC."
38
39 EXTEND TIME FOR FOOD AND NUTRITION SERVICES APPEALS DECISIONS
40 SECTION 9I.4. G.S. 108A-79(j) reads as written:
41 "(j) After the administrative hearing, the hearing officer shall prepare a proposal for
42 decision, citing pertinent law, regulations, and evidence, which shall be served upon the appellant
43 and the county department of social services or their personal representatives. The appellant and
44 the county department of social services shall have the opportunity to present oral and written
45 arguments in opposition to or in support of the proposal for decision to the designated official of
46 the Department who is to make the final decision. The final decision shall be based on, conform
47 to, and set forth in detail the relevant evidence, pertinent State and federal law and regulations,
48 and matters officially noticed. The decision shall be rendered not more than 90 days, or 45 60
49 days in the case of the food and nutrition services program, from the date of request for the
50 hearing, unless the hearing was delayed at the request of the appellant. If the hearing was delayed
51 at the appellant's request, the decision may only be delayed for the length of time the appellant

1 requested a delay. The final decision shall be served upon the appellant and upon the county
2 department of social services by certified mail, with a copy furnished to either party's attorney of
3 record. In the absence of a petition for judicial review filed pursuant to subsection (k) herein, the
4 final decision shall be binding upon the appellant, the county department of social services, the
5 county board of social services, and the board of county commissioners."
6
7 PART IX-J. VOCATIONAL REHABILITATION SERVICES [RESERVED]
8
9 PART IX-K. HHS MISCELLANEOUS
10
11 EXPAND THE RIGHTS OF APPEAL PURSUANT TO INSPECTIONS OF LOCAL
12 CONFINEMENT FACILITIES
13 SECTION 9K.1.(a) G.S. 153A-222 reads as rewritten:
14 "§ 153A-222. Inspections of local confinement facilities.
15 (a) Department personnel shall visit and inspect each local confinement facility at least
16 semiannually. The purpose of the inspections is to investigate the conditions of confinement, the
17 treatment of prisoners, the maintenance of entry level employment standards for jailers and
18 supervisory and administrative personnel of local confinement facilities as provided for in
19 G.S. 153A-216(4), and to determine whether the facilities meet the minimum standards published
20 pursuant to G.S. 153A-221. The inspector shall make a written report of each inspection and
21 submit it within 30 days after the day the inspection is completed to the governing body and other
22 local officials responsible for the facility. The report shall specify each way in which the facility
23 does not meet the minimum standards.is alleged to be deficient.
24 (b) The Within 30 days of receiving the inspection report under subsection (a) of this
25 section, the governing body shall consider the report at its first regular meeting after receipt of
26 the report and shall promptly (i) initiate any action necessary to bring the facility into conformity
27 with the standards.minimum standards published pursuant to G.S. 153A-221 or (ii) request a
28 contested case hearing regarding any or all findings in the report pursuant to subsection (c) of
29 this section.
30 (c) A governing body, sheriff, or other administrator of a local confinement facility has
31 a right to request a contested case hearing regarding any or all findings in the report pursuant to
32 and in accordance with the provisions of Article 3 of Chapter 150B of the General Statutes.
33 Appeals of any contested case hearing shall be conducted pursuant to Article 4 of Chapter 150B
35 (d) Notwithstanding the provisions of G.S. 8-53 or any other provision of law relating to
36 the confidentiality of communications between physician and patient, the representatives of the
37 Department of Health and Human Services who make these inspections under this section may
38 review any writing or other record in any recording medium which pertains to the admission,
39 discharge, medication, treatment, medical condition, or history of persons who are or have been
40 inmates of the facility being inspected. Physicians, psychologists, psychiatrists, nurses, and
41 anyone else involved in giving treatment at or through a facility who may be interviewed by
42 representatives of the Department may disclose to these representatives information related to an
43 inquiry, notwithstanding the existence of the physician-patient privilege in G.S. 8-53 or any other
44 rule of law; provided the patient, resident or client inmate has not made written objection to such
45 disclosure. The facility, its employees, and any person interviewed during these inspections shall
46 be immune from liability for damages resulting from the disclosure of any information to the
47 Department. Any confidential or privileged information received from review of records or
48 interviews shall be kept confidential by the Department and not disclosed without written
49 authorization of the inmate or legal representative, or unless disclosure is ordered by a court of
50 competent jurisdiction. The Department shall institute appropriate policies and procedures to
51 ensure that this information shall not be disclosed without authorization or court order. The

1 Department shall not disclose the name of anyone who has furnished information concerning a
2 facility without the consent of that person. Neither the names of persons furnishing information
3 nor any confidential or privileged information obtained from records or interviews shall be
4 considered "public records" within the meaning of G.S. 132-1. Prior to releasing any information
5 or allowing any inspections referred to in this section section, the patient, resident or client inmate
6 must be advised in writing that he has the of the inmate's right to object in writing to such the
7 release of information or review of his records the inmate's records, and that by an objection
8 objecting in writing he the inmate may prohibit the inspection or release of his the inmate's
9 records."
10 SECTION 9K.1.(b) The Department of Health and Human Services shall adopt
11 temporary rules under G.S. 150B-21.1 to comply with this section and shall adopt permanent
12 rules to comply with this section by October 1, 2023.
13 SECTION 9K.1.(c) This section becomes effective October 1, 2022, and applies to
14 actions taken by a governing body, sheriff, or other administrator of a local confinement facility
15 related to inspection reports received on or after that date.
16
17 CLARIFY TREATMENT OF PREGNANT FEMALE INMATES
18 SECTION 9K.2.(a) G.S. 153A-221 reads as rewritten:
19 "§ 153A-221. Minimum standards.
20 (a) The Secretary shall develop and publish minimum standards for the operation of local
21 confinement facilities and may from time to time develop and publish amendments to the
22 standards. The standards shall be developed with a view to providing secure custody of prisoners
23 and to protecting their health and welfare and providing for their humane treatment. The
24 standards shall provide for all of the following:
25 …
26 (11) Compliance with the requirements of Part 2B of Article 10 of Chapter 153A
27 of the General Statutes, Dignity for Women Incarcerated in Local
28 Confinement Facilities.
29 …
30 (e) A local confinement facility shall be subject to the requirements of Part 2B of Article
31 10 of Chapter 153A of the General Statutes."
32 SECTION 9K.2.(b) G.S. 153A-229.2(c) reads as rewritten:
33 "(c) Nutrition. – The sheriff or the administrator of the local confinement facility shall
34 ensure that pregnant female incarcerated persons are provided sufficient food and dietary
35 supplements and are provided access to food at appropriate times of day, as ordered by a
36 physician, a physician staff member, or a local confinement facility nutritionist to meet generally
37 accepted prenatal nutritional guidelines for pregnant female incarcerated persons. in accordance
38 with the guidelines for women who are pregnant or lactating as set forth in the most recent edition
39 of Dietary Guidelines for Americans published by the United States Department of Health and
40 Human Services and the United States Department of Agriculture. Orders by a physician or
41 physician staff regarding dietary needs or restrictions for any particular pregnant incarcerated
42 person shall take precedence over the Dietary Guidelines for Americans. While in the hospital,
43 pregnant female incarcerated persons and female incarcerated persons in the postpartum recovery
44 period shall have access to the full range of meal options provided by the hospital to ensure that
45 each meal meets the female incarcerated person's nutritional needs."
46 SECTION 9K.2.(c) This section is effective when it becomes law.
47
48 TEMPORARY AUTHORIZATION OF BEHAVIOR ANALYSTS TO PRACTICE
49 WITHOUT SUPERVISION
50 SECTION 9K.3.(a) Notwithstanding G.S. 90-270.154 and 21 NCAC 54 .2801
51 through .2806, individuals who reside in this State and meet one of the following criteria may

1 engage in the practice of behavior analysis, as defined in G.S. 90-732(8), without the supervision
2 of a licensed psychologist:
3 (1) The individual is licensed or certified in another state or jurisdiction as a
4 behavior analyst, assistant behavior analyst, or behavior technician, as defined
5 in G.S. 90-732, respectively.
6 (2) The individual is nationally accredited by the Behavior Analyst Certification
7 Board, or its successor, as a board-certified behavior analyst, board-certified
8 assistant behavior analyst, or registered behavior technician.
9 (3) The individual is nationally accredited by the Qualified Applied Behavior
10 Analysis Credentialing Board, or its successor, as a qualified behavior analyst,
11 qualified autism services practitioner supervisor, or applied behavior analysis
12 technician.
13 SECTION 9K.3.(b) Assistant behavior analysts, behavior technicians, or their
14 nationally accredited equivalents authorized to practice under this section shall be supervised by
15 a behavior analyst in accordance with Article 43 of Chapter 90 of the General Statutes.
16 SECTION 9K.3.(c) This section is effective when this act becomes law.
17 SECTION 9K.3.(d) This section expires 60 calendar days from the date the North
18 Carolina Behavior Analysis Board accepts licensure applications for behavior analysts, assistant
19 behavior analysts, and behavior technicians.
20
21 INTERCHANGEABLE BIOLOGICAL PRODUCT DEFINITION MODIFICATION
22 AND BIOLOGICAL PRODUCT ELECTRONIC RECORD REQUIREMENT
23 SECTION 9K.4.(a) G.S. 90-85.27(3a) reads as rewritten:
24 "(3a) Interchangeable biological product. – A biological product determined by the
25 United States Food and Drug Administration to meet the standards for
26 interchangeability set forth in 42 U.S.C. § 262(k)(4), or deemed
27 therapeutically equivalent by the United States Food and Drug
28 Administration.42 U.S.C. § 262(k)(4)."
29 SECTION 9K.4.(b) G.S. 90-85.28(b2) is reenacted as it existed immediately before
30 its expiration and reads as rewritten:
31 "(b2) Within a reasonable time five business days following the dispensing of a biological
32 product requiring a prescription, the pharmacist or a designee shall communicate to the prescriber
33 the product name and manufacturer of the specific biological product dispensed to the patient.
34 This required communication shall be conveyed by making an entry into an any of the following
35 that is electronically accessible to the prescriber:
36 (1) An interoperable electronic medical records system, or electronic system.
37 (2) Electronic prescribing technology, or a technology.
38 (3) A pharmacy benefit management system, or a system.
39 (4) The North Carolina Health Information Exchange Network.
40 (5) A pharmacy record that can be electronically accessible by the
41 prescriber.record.
42 Entry into one of the above referenced methods of communication electronic records systems
43 listed in this subsection by the pharmacist or a designee is presumed to provide the required
44 communication. communication and notice to the prescriber. Otherwise, the pharmacist or a
45 designee shall provide the required communication to the prescriber by facsimile, telephone,
46 electronic transmission, or other prevailing means, provided that communication shall not be
47 required under any of the following circumstances:
48 (1) There is no United States Food and Drug Administration-approved
49 interchangeable biological product for the product prescribed.
50 (2) A refill prescription is not changed from the product dispensed on the prior
51 filling of the prescription."

1 SECTION 9K.4.(c) This section becomes effective October 1, 2022, and applies to
2 the dispensing of biological products requiring a prescription on or after that date.
3
4 PART IX-L. DHHS BLOCK GRANTS
5
6 REVISE DHHS BLOCK GRANTS
7 SECTION 9L.1. Section 9L.1 of S.L. 2021-180, as amended by Section 3.4 of S.L.
9 "SECTION 9L.1.(a) Except as otherwise provided, appropriations from federal Block Grant
10 funds are made for each year of the fiscal biennium ending June 30, 2023, according to the
11 following schedule:
12
13 TEMPORARY ASSISTANCE FOR NEEDY FY 2021-2022 FY 2022-2023
14 FAMILIES (TANF) FUNDS
15
16 Local Program Expenditures
17
18 Division of Social Services
19
20 01. Work First Family Assistance $35,549,914 $35,549,914
21
22 02. Work First County Block Grants 80,093,566 80,093,566
23
24 03. Work First Electing Counties 2,378,213 2,378,213
25
26 04. Adoption Services – Special Children
27 Adoption Fund 4,197,750 4,001,676
28
29 05. Child Protective Services – Child Welfare
30 Workers for Local DSS 11,583,264 11,387,190
31
32 06. Child Welfare Program Improvement Plan 775,176 775,176
33
34 07. Child Welfare Collaborative 400,000 400,000
35
36 08. Child Welfare Initiatives 1,400,000 1,400,000
37
38 Division of Child Development and Early Education
39
40 09. Subsidized Child Care Program 45,813,694 45,813,694
41
42 10. Swap-Child Care Subsidy 12,600,000 12,600,000
43
44 11. NC Pre-K Services 68,300,000 68,300,000
45
46 Division of Public Health
47
48 12. Teen Pregnancy Prevention Initiatives 3,522,996 3,538,541
49
50 DHHS Administration
51

1 13. Division of Social Services 2,482,260 2,482,260
2
3 14. Office of the Secretary 34,042 34,042
4
5 15. Eligibility Systems – Operations and
6 Maintenance 737,565 658,250
7
8 16. NC FAST Implementation 426,357 802,959
9
10 17. Division of Social Services – Workforce
11 Innovation & Opportunity Act (WIOA) 93,216 93,216
12
13 18. Division of Social Services TANF Modernization 2,000,000 2,000,0001,667,571
14
15 Transfers to Other Block Grants
16
18
19 19. Transfer to the Child Care and
20 Development Fund 21,773,001 21,773,001
21
23
24 20. Transfer to Social Services Block
25 Grant for Child Protective Services –
26 Training 285,612 285,612
27
29 Grant for Child Protective Services 5,040,000 5,040,000
30
32 Grant for County Departments of
33 Social Services for Children's Services 13,097,783 13,097,7837,547,843
34
36 Grant – Foster Care Services 3,422,219 3,422,219
37
38 24. Transfer to Social Services Block 1,582,000 1,582,000
39 Grant – Child Advocacy Centers
40
41 TOTAL TEMPORARY ASSISTANCE FOR
42 NEEDY FAMILIES (TANF) FUNDS $317,588,628 $317,509,312$311,626,943
43
44 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
45 EMERGENCY CONTINGENCY FUNDS
46
48
50
51 01. Subsidized Child Care $35,790,508 $33,439,988

1
2 TOTAL TEMPORARY ASSISTANCE FOR
3 NEEDY FAMILIES (TANF) EMERGENCY
4 CONTINGENCY FUNDS $35,790,508 $33,439,988
5
6 SOCIAL SERVICES BLOCK GRANT
7
9
10 Divisions of Social Services and Aging and Adult Services
11
12 01. County Departments of Social Services $19,905,849 $19,905,849$25,455,789
13
14 02. County Departments of Social Services
15 (Nonrecurring) 1,300,000 1,300,000
16
17 03. County Departments of Social Services
18 (Transfer From TANF) $13,097,783$13,097,783$7,547,843
19
20 04. EBCI Tribal Public Health and Human Services 244,740 244,740
21
22 05. Child Protective Services
23 (Transfer From TANF) 5,040,000 5,040,000
24
25 06. State In-Home Services Fund 1,943,950 1,943,950
26
27 07. Adult Protective Services 2,138,404 2,138,404
28
29 08. State Adult Day Care Fund 1,994,084 1,994,084
30
31 09. Child Protective Services/CPS
32 Investigative Services – Child Medical
33 Evaluation Program 901,868 901,868
34
35 10. Special Children Adoption Incentive Fund 462,600 462,600
36
37 11. Child Protective Services – Child
38 Welfare Training for Counties
39 (Transfer From TANF) 285,612 285,612
40
41 12. Home and Community Care Block
42 Grant (HCCBG) 2,696,888 2,696,888
43
44 13. Child Advocacy Centers
45 (Transfer from TANF $1,582,000) 1,582,000 1,582,000
46
47 14. Guardianship – Division of Social Services 1,802,671 1,802,671
48
49 15. Foster Care Services
50 (Transfer From TANF) 3,422,219 3,422,219
51

1 Division of Central Management and Support
2
3 16. DHHS Competitive Block Grants
4 for Nonprofits 4,774,525 4,774,525
5
6 Division of Mental Health, Developmental Disabilities, and Substance Abuse Services
7
8 17. Mental Health Services – Adult and
9 Child/Developmental Disabilities Program/
10 Substance Abuse Services – Adult 4,149,595 4,149,595
11
12 DHHS Program Expenditures
13
14 Division of Services for the Blind
15
16 18. Independent Living Program 3,603,793 3,603,793
17
18 Division of Health Service Regulation
19
20 19. Adult Care Licensure Program 557,598 557,598
21
22 20. Mental Health Licensure and
23 Certification Program 266,158 266,158
24
25 Division of Aging and Adult Services
26
27 21. Guardianship 3,825,443 3,825,443
28
30
31 22. Division of Aging and Adult Services 715,422 715,422725,490
32
33 23. Division of Social Services 1,019,764 1,019,764
34
35 24. Office of the Secretary/Controller's Office 636,920 636,920
36
37 25. Legislative Increases/Fringe Benefits 293,655 293,655587,310
38
39 26. Division of Child Development and
40 Early Education 13,878 13,878
41
42 27. Division of Mental Health, Developmental
43 Disabilities, and Substance Abuse Services 27,446 27,446
44
45 28. Division of Health Service Regulation 133,620 133,620
46
47 29. Division of Services for the Blind and Services
48 for the Deaf and Hard of Hearing 127,010 127,010
49
50 TOTAL SOCIAL SERVICES BLOCK GRANT $76,963,495 $76,963,495$77,267,218
51

1 LOW-INCOME ENERGY ASSISTANCE BLOCK GRANT
2
4
6
7 01. Low-Income Energy Assistance
8 Program (LIEAP) $49,717,611 $49,415,982$55,177,472
9
10 02. Crisis Intervention Program (CIP) 32,980,981 32,764,75134,706,245
11
12 Local Administration
13
15
16 03. County DSS Administration 6,769,114 6,724,7356,989,469
17
19
21
22 04. Division of Social Services 10,000 10,000
23
24 05. Office of the Secretary/DIRM (Accountable Results for
25 Community Action (AR4CA) Replacement System) 50,000 166,750
26
27 06. Office of the Secretary/DIRM 278,954 278,954
28
29 07. Office of the Secretary/Controller's Office 18,378 18,378
30
31 08. NC FAST Development 624,628 1,176,364
32
33 09. NC FAST Operations and Maintenance 1,461,946 1,304,733
34
35 Transfers to Other State Agencies
36
37 Department of Environmental Quality
38
39 10. Weatherization Program 8,751,347 8,693,97210,506,077
40
41 11. Heating Air Repair and Replacement
42 Program (HARRP) 5,830,717 5,792,4906,420,718
43
44 12. Local Residential Energy Efficiency Service
45 Providers – Weatherization 527,190 523,733629,413
46
47 13. Local Residential Energy Efficiency Service
48 Providers – HARRP 284,682 282,816349,383
49
50 14. DEQ – Weatherization Administration 527,190 523,733679,413
51

1 15. DEQ – HARRP Administration 284,682 282,816424,383
2
3 Department of Administration
4
5 16. N.C. Commission on Indian Affairs 87,736 87,736
6
7 TOTAL LOW-INCOME ENERGY
8 ASSISTANCE BLOCK GRANT $108,205,156$108,047,943$118,925,488
9
10 CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT
11
13
15
16 01. Child Care Services $241,041,643 $240,907,680
17
18 02. Smart Start Subsidy 7,392,654 7,392,654
19
20 03. Transfer from TANF Block Grant
21 for Child Care Subsidies 21,773,001 21,773,001
22
23 04. Quality and Availability Initiatives
24 (TEACH Program $3,800,000) 51,808,870 51,808,870
25
27
29
30 05. DCDEE Administrative Expenses 9,710,886 9,710,886
31
33
34 06. Direct Deposit for Child Care Payments 5,000 5,000
35
36 07. Local Subsidized Child Care
37 Services Support 18,780,355 18,780,355
38
40
41 08. NC FAST Operations and Maintenance 1,201,697 1,201,697
42
43 09. DHHS Central Administration – DIRM
44 Technical Services 979,762 979,762
45
46 10. DHHS Central Administration 7,346 7,346
47
49
50 11. Child Care Health Consultation Contracts 62,205 62,205
51

1 TOTAL CHILD CARE AND DEVELOPMENT
2 FUND BLOCK GRANT $352,763,419 $352,629,456
3
4 COMMUNITY MENTAL HEALTH SERVICES BLOCK GRANT
5
7
8 01. Mental Health Services – Child $5,460,328 $4,432,011$5,250,000
9
10 02. Mental Health Services – Adult/Child 26,858,142 17,126,39922,298,284
11
12 03. Mental Health Services – First
13 Psychotic Symptom Treatment 4,205,369 2,615,4975,416,756
14
16
18
19 04. Crisis Services 1,569,298 1,307,7492,877,047
20
21 05. Administration 323,120 323,120332,351
22
23 06. Adult/Child Mental Health Services 350,150 350,150
24
25 TOTAL COMMUNITY MENTAL HEALTH SERVICES
26 BLOCK GRANT $38,766,407 $26,154,926$36,524,587
27
28 SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT
29
31
33
34 01. Substance Abuse – IV Drug $2,550,915 $2,550,915
35
36 02. Substance Abuse Prevention 16,594,705 10,999,98320,245,927
37
38 03. Substance Abuse Services – Treatment for
39 Children/Adults
40 (First Step Farm of WNC, Inc., $100,000)$100,000; 60,846,746 38,467,86053,266,722
41 Substance Use Network (SUN)
42 Project $1,000,000; Substance Use Treatment/
43 Haywood County $1,500,000; Substance Use
44 Treatment/Madison County $1,500,000;
45 Addiction Recovery Care Association $2,000,000)
46
47 04. Crisis Solutions Initiatives – Collegiate
48 Wellness/Addiction Recovery 1,085,000 1,085,000
49 05. Crisis Solutions Initiatives – Community
50 Paramedic Mobile Crisis Management 20,000 20,00040,000
51

2
4
5 06. Competitive Grants 1,600,000 1,600,000
6
8
9 06A. Crisis Solutions Initiatives – Collegiate
10 Wellness/Addiction Recovery 1,085,000 1,545,205
11
12 06B. Veterans Initiatives 250,000 288,963
13
15
17
18 07. Administration 1,320,452 1,320,452
19
20 08. Controlled Substance Reporting System
21 Enhancement 427,655 427,655433,518
22
23 09. Veterans Initiatives 250,000 250,000
24 TOTAL SUBSTANCE ABUSE PREVENTION
25 AND TREATMENT BLOCK GRANT $84,695,473 $56,721,865$81,291,702
26
27 MATERNAL AND CHILD HEALTH BLOCK GRANT
28
30
32
33 01. Women's and Children's Health Services
34 (Safe Sleep Campaign $45,000; Sickle Cell
35 Centers $100,000; Prevent Blindness $575,000;
36 March of Dimes $350,000; Teen Pregnancy
37 Prevention Initiatives $650,000;
38 Nurse-Family Partnership $950,000;
39 Perinatal & Neonatal Outreach
40 Coordinator Contracts $440,000;
41 Mountain Area Pregnancy Services $50,000) $14,778,973 $14,778,973
42
43 02. Oral Health 48,227 48,227
44
45 03. Evidence-Based Programs in Counties
46 With Highest Infant Mortality Rates 1,575,000 1,575,000
47
49
50 04. Children's Health Services 1,427,323 1,427,323
51

1 05. Women's Health – Maternal Health 169,864 169,864
2
3 06. Women's and Children's Health – Perinatal
4 Strategic Plan Support Position 73,920 73,920
5
6 07. State Center for Health Statistics 158,583 158,583
7
8 08. Health Promotion – Injury and
9 Violence Prevention 87,271 87,271
10
12
13 09. Division of Public Health Administration 552,571 552,571
14
15 TOTAL MATERNAL AND CHILD
16 HEALTH BLOCK GRANT $18,871,732 $18,871,732
17
18 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT
19
21
22 01. Physical Activity and Prevention $3,030,116 $3,081,442
23
24 02. Injury and Violence Prevention
25 (Services to Rape Victims – Set-Aside) 160,000 160,000
26
28
30
31 03. HIV/STD Prevention and
32 Community Planning 137,648 137,648
33
34 04. Oral Health Preventive Services 150,000 150,000
35
36 05. Laboratory Services – Testing,
37 Training, and Consultation 21,000 21,000
38
39 06. Injury and Violence Prevention
40 (Services to Rape Victims – Set-Aside) 53,206 53,206
41
42 07. Performance Improvement and
43 Accountability 592,123 592,123
44
45 08. State Center for Health Statistics 82,505 82,505
46
48
50
51 09. Division of Public Health 65,000 65,000

1
2 TOTAL PREVENTIVE HEALTH AND HEALTH
3 SERVICES BLOCK GRANT $4,291,598 $4,342,924
4
5 COMMUNITY SERVICES BLOCK GRANT
6
7 01. Community Action Agencies $22,158,403 $20,916,673$24,537,507
8
9 02. Limited Purpose Agencies/Discretionary Funding 616,599 355,321
10
11 03. Office of Economic Opportunity 1,004,543 1,004,543
12
13 04. Office of the Secretary/DIRM (Accountable Results for
14 Community Action (AR4CA) Replacement System) 327,944 589,222
15
16 05. Office of Economic Opportunity – Workforce
17 Investment Opportunities Act (WIOA) 60,000 60,000
18
19 TOTAL COMMUNITY SERVICES
20 BLOCK GRANT $24,167,489 $22,925,759$26,546,593
21 …
22 "SOCIAL SERVICES BLOCK GRANT
23 "SECTION 9L.1.(l) The sum of nineteen million nine hundred five thousand eight hundred
24 forty-nine dollars ($19,905,849) for each year of the 2021-2023 fiscal biennium the 2021-2022
25 fiscal year, the sum of twenty-five million four hundred fifty-five thousand seven hundred
26 eighty-nine dollars ($25,455,789) for the 2022-2023 fiscal year, and the sum of one million three
27 hundred thousand dollars ($1,300,000) in nonrecurring funds for each year of the 2021-2023
28 fiscal biennium appropriated in this act in the Social Services Block Grant to the Department of
29 Health and Human Services, Division of Social Services, and the sum of thirteen million
30 ninety-seven thousand seven hundred eighty-three dollars ($13,097,783) for each year of the
31 2021-2023 fiscal biennium the 2021-2022 fiscal year and the sum of seven million five hundred
32 forty-seven thousand eight hundred forty-three dollars ($7,547,843) for the 2022-2023 fiscal year
33 transferred from funds appropriated in the TANF Block Grant shall be used for county Block
34 Grants. The Division shall certify these funds in the appropriate State-level services based on
35 prior year actual expenditures. The Division has the authority to realign the authorized budget
36 for these funds, as well as State Social Services Block Grant funds, among the State-level services
37 based on current year actual expenditures.
38 …
39 "LOW-INCOME ENERGY ASSISTANCE BLOCK GRANT
40 …
41 "SECTION 9L.1.(v) The sum of forty-nine million seven hundred seventeen thousand six
42 hundred eleven dollars ($49,717,611) for the 2021-2022 fiscal year and the sum of forty-nine
43 million four hundred fifteen thousand nine hundred eighty-two dollars ($49,415,982) fifty-five
44 million one hundred seventy-seven thousand four hundred seventy-two dollars ($55,177,472) for
45 the 2022-2023 fiscal year appropriated in this act in the Low-Income Energy Assistance Block
46 Grant to the Department of Health and Human Services, Division of Social Services, shall be
47 used for Energy Assistance Payments for the households of (i) elderly persons age 60 and above
48 with income up to one hundred thirty percent (130%) one hundred fifty percent (150%) of the
49 federal poverty level and (ii) disabled persons eligible for services funded through the Division
50 of Aging and Adult Services.

1 County departments of social services shall submit to the Division of Social Services an
2 outreach plan for targeting households with 60 year old household members no later than August
3 1 of each year. The outreach plan shall comply with the following:
4 (1) Ensure that eligible households are made aware of the available assistance,
5 with particular attention paid to the elderly population age 60 and above and
6 disabled persons receiving services through the Division of Aging and Adult
7 Services.
8 (2) Include efforts by the county department of social services to contact other
9 State and local governmental entities and community-based organizations to
10 (i) offer the opportunity to provide outreach and (ii) receive applications for
11 energy assistance.
12 (3) Be approved by the local board of social services or human services board
13 prior to submission.
14 …
15 "MENTAL HEALTH SERVICES BLOCK GRANT
16 "SECTION 9L.1.(z) The sum of four million two hundred five thousand three hundred
17 sixty-nine dollars ($4,205,369) for the 2021-2022 fiscal year and the sum of two million six
18 hundred fifteen thousand four hundred ninety-seven dollars ($2,615,497) five million four
19 hundred sixteen thousand seven hundred fifty-six dollars ($5,416,756) for the 2022-2023 fiscal
20 year appropriated in this act in the Community Mental Health Services Block Grant to the
21 Department of Health and Human Services, Division of Mental Health, Developmental
22 Disabilities, and Substance Abuse Services, is allocated for Mental Health Services – First
23 Psychotic Symptom Treatment.
24 "SECTION 9L.1.(z1) Of the funds allocated in the Community Mental Health Services
25 Block Grant to the Department of Health and Humans Services, Division of Mental Health,
26 Developmental Disabilities, and Substance Abuse Services, for each fiscal year of the 2021-2023
27 fiscal biennium, the sum of three hundred fifty thousand one hundred fifty dollars ($350,150)
28 shall be used to establish three positions and cover operating costs focused on developing pilot
29 programs and implementing policy to improve services to transition-aged youth and adults with
30 serious mental illness or serious emotional disturbance.
31
32 "SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT
33 "SECTION 9L.1.(z2) Of the funds allocated in the Substance Abuse Prevention and
34 Treatment Block Grant to the Department of Health and Human Services, Division of Mental
35 Health, Developmental Disabilities, and Substance Abuse Services (Division), for Substance
36 Abuse Services – Treatment for Children/Adults for the 2022-2023 fiscal year, the sum of four
37 million dollars ($4,000,000) shall be used as follows:
38 (1) One million dollars ($1,000,000) to Cabarrus County to support the operation
39 and expansion of the Substance Use Network (SUN) project to build a
40 collaborative system of care for pregnant mothers with a substance use
41 disorder, and their infants and families, in Cabarrus, Rowan, and Stanly
42 Counties.
43 (2) One million five hundred thousand dollars ($1,500,000) to Haywood County
44 for substance use treatment and recovery services.
45 (3) One million five hundred thousand dollars ($1,500,000) to Madison County
46 for substance use treatment and recovery services.
47 …."
48
49 ALLOW PORTION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT ARPA
50 FUNDS FOR TEMPORARY INCREASE OF CHILD CARE SUBSIDY RATES TO

1 2018 MARKET STUDY RATES AND CORRECT AGENCY REFERENCE/ARPA
2 SUBSTANCE ABUSE PREVENTION AND TREATMENT BLOCK GRANT FUNDS
3 SECTION 9L.2.(a) Section 9L.2(b)(1)a. of S.L. 2021-180 reads as rewritten:
4 "a. A minimum of two hundred six million dollars ($206,000,000) but no
5 more than two hundred fifteen million dollars ($215,000,000) to (i)
6 reduce the waitlist for children eligible for subsidized child care who
7 are in foster care and (ii) after addressing the waitlist under item (i) of
8 this sub-subdivision, work toward reducing the waitlist for children
9 eligible for subsidized child care. Additionally, the Division shall use
10 a portion of these funds to temporarily increase the child care subsidy
11 reimbursement rates to those recommended in the 2018 Child Care
12 Market Rate Study until the funds expire on September 30, 2024."
13 SECTION 9L.2.(b) Section 9L.2(d)(1) of S.L. 2021-180 reads as rewritten:
14 "(1) Eight million dollars ($8,000,000) to the Department of Public Safety (DPS)
15 Division of Mental Health, Developmental Disabilities, and Substance Abuse
16 Services (Division) to expand the MAT Community Supervision pilot
17 program, a program for individuals recently released from prison and on
18 probation. DPS, in collaboration with the Division of Mental Health,
19 Developmental Disabilities, and Substance Abuse Services (Division), The
20 Division, in collaboration with the Department of Public Safety (DPS), shall
21 select at least five counties to participate in the expanded pilot program that
22 represent tier one or tier two counties with the highest need. For purposes of
23 this subdivision, tier one and tier two counties shall have the same
24 designations as those established by the North Carolina Department of
25 Commerce's 2021 County Tier Designations. DPS and the The Division and
26 DPS shall report on the results of the pilot program to the Joint Legislative
27 Oversight Committee on Health and Human Services and the Joint Legislative
28 Oversight Committee on Justice and Public Safety by November 1, 2023."
29
30 PART X. AGRICULTURE AND CONSUMER SERVICES
31
32 MODIFICATION OF FOREST SERVICE OVERTIME PAY
33 SECTION 10.1. Of the funds appropriated in this act to the Department of
34 Agriculture and Consumer Services, the sum of five hundred thousand dollars ($500,000) in
35 recurring funds shall be used to provide overtime compensation to employees of the North
36 Carolina Forest Service who are exempt from the Fair Labor Standards Act and are involved in
37 fighting forest fires for overtime earned while conducting fire suppression duties, as defined in
38 G.S. 106-955, or while on-call, as defined in G.S. 106-956. Notwithstanding G.S. 143C-6-4 and
39 G.S. 143C-6-9, these funds may be used only for the purposes described in this section and may
40 not be repurposed by the Department. Any funds remaining after the overtime compensation is
41 provided in accordance with this section shall revert to the General Fund at the end of each fiscal
42 year.
43
44 MODIFY FOOD BANK AND FOOD ASSISTANCE GOLDEN LEAF FUNDING
46 "SECTION 10.6. Funds appropriated in this act from the State Fiscal Recovery Fund to the
47 Department of Agriculture and Consumer Services for support of North Carolina food banks
48 shall be allocated as follows:
49 …

1 (2) Ten million dollars ($10,000,000) to Golden L.E.A.F. (Long-Term Economic
2 Advancement Foundation), Inc. (Golden L.E.A.F.), a nonprofit corporation,
3 to be allocated for the following purposes:
4 a. Eight million dollars ($8,000,000) to provide grants Grants to
5 nonprofit organizations to assist those organizations in (i) becoming
6 eligible to be partner agencies to any a North Carolina food bank. bank
7 or (ii) enhancing or expanding the capacity of current partner agencies
8 of North Carolina food banks. For purposes of this sub-subdivision, a
9 North Carolina food bank is a food bank that is a member of Feeding
10 the Carolinas, a nonprofit corporation. Golden L.E.A.F. shall
11 coordinate with Feeding the Carolinas in determining eligible
12 activities, eligible recipients, maximum grant amounts, and other grant
13 program details.
14 b. Two million dollars ($2,000,000) to provide grants to nonprofit
15 organizations that are not North Carolina food bank partner agencies
16 for school-based weekend food assistance programs for
17 students.Grants for school-based weekend food assistance programs.
18 Golden L.E.A.F. shall use no more than two million dollars
19 ($2,000,000) for grants under this sub-subdivision.
20 c. Golden L.E.A.F. may use up to three percent (3%) eight percent (8%)
21 of funds allocated by this subdivision for administrative expenses.
22 …."
23
24 SWINE BIOGAS PRODUCTION SYSTEM COST SHARE FUNDS
25 SECTION 10.3. Of the funds appropriated in this act from the General Fund to the
26 Department of Agriculture and Consumer Services, the sum of one million five hundred thousand
27 dollars ($1,500,000) in nonrecurring funds shall be used to provide a directed grant to the NC
28 Foundation for Soil and Water Conservation to provide cost share assistance to swine farmers
29 for the installation of anaerobic digesters to produce biogas. Participants shall be eligible for cost
30 share of no more than seventy-five percent (75%) of the portion of actual construction and
31 equipment costs that exceed four hundred forty dollars ($440.00) per 1,000 pounds of steady
32 state live weight. Funding shall be limited to a maximum of one hundred thousand dollars
33 ($100,000) per project. Eligible farms must have a design capacity of less than 1,000,000 pounds
34 of steady state live weight and must have a contract with a duration of 10 years or more for the
35 purchase of the biogas produced by the anaerobic digester.
36
37 PRODUCE PRESCRIPTION FUNDS
38 SECTION 10.4. Funds appropriated in this act to the Department of Agriculture and
39 Consumer Services to provide a directed grant to Reinvestment Partners, a nonprofit
40 organization, for its Produce Prescription Program shall be matched by the grant recipient on the
41 basis of one dollar ($1.00) in non-State funds for every one dollar ($1.00) in State funds. If
42 Reinvestment Partners cannot provide matching funds in an amount sufficient to receive the full
43 amount allocated to them by this act, the Department shall adjust the grant amount to reflect the
44 match required by this section.
45
46 PART XI. COMMERCE
47
48 COMMUNITY DEVELOPMENT BLOCK GRANT MODIFICATIONS
49 SECTION 11.1. Notwithstanding Section 11.1(a) of S.L. 2021-180, of the funds
50 appropriated in this act to the Department of Commerce for federal block grant funds, the

1 following allocations are made for the fiscal year ending June 30, 2023, according to the
2 following schedule:
3
4 COMMUNITY DEVELOPMENT BLOCK GRANT
5
6 1. State Administration $1,560,286
7
8 2. Neighborhood Revitalization 7,919,796
9
10 3. Economic Development 14,196,109
11
12 4. Infrastructure 20,000,000
13
14 5. Rural Community Development 5,000,000
15
16 TOTAL COMMUNITY DEVELOPMENT
17 BLOCK GRANT – 2022 Program Year $48,676,191
18 2023 Program Year $48,676,191.
19
20 NC BIOTECHNOLOGY CENTER
21 SECTION 11.2.(a) Recurring funds appropriated in this act to the Department of
22 Commerce for the North Carolina Biotechnology Center (Center) for the 2022-2023 fiscal year
23 shall be allocated for the following purposes in the following proportions:
24 (1) Twenty-one percent (21%) for job creation, including funding for the
25 AgBiotech Initiative, economic and industrial development, and related
26 activities.
27 (2) Sixty-five percent (65%) for science and commercialization, including
28 science and technology development, Centers of Innovation, business and
29 technology development, education and training, and related activities.
30 (3) Fourteen percent (14%) for Center operations, including administration,
31 professional and technical assistance and oversight, corporate
32 communications, human resource management, financial and grant
33 administration, legal, and accounting.
34 SECTION 11.2.(b) The nonrecurring funds appropriated in this act to the
35 Department of Commerce for the Center for the 2022-2023 fiscal year may be used for the
36 following purposes:
37 (1) Expansion of the NC BIONEER Venture Challenge start-up competition
38 statewide.
39 (2) Expansion of NCBiotech grant and loan program funding.
40 (3) Training of new workers statewide to meet biomanufacturing job growth.
41 (4) Recruitment of new life sciences companies to the State.
42 SECTION 11.2.(c) The Center shall not use any of the nonrecurring funds
43 appropriated in this act for administrative costs and shall report on the expenditure of those funds
44 pursuant to Section 11.2 of S.L. 2021-180.
45 SECTION 11.2.(d) Up to ten percent (10%) of the sum of each of the allocations in
46 subsection (a) of this section may be reallocated to subdivision (a)(1) or subdivision (a)(2) of this
47 section if, in the judgment of Center management, the reallocation will advance the mission of
48 the Center.
49
50 RURAL TRANSFORMATION GRANTS CLARIFICATION
51 SECTION 11.3. Section 11.12(a) of S.L. 2021-180 reads as rewritten:

1 "SECTION 11.12.(a) Allocation. – Of the funds appropriated in this act from the State Fiscal
2 Recovery Fund for Rural Downtown Transformation grants, the sum of fifty million dollars
3 ($50,000,000) shall be allocated to the Department of Commerce, Rural Economic
4 Developmental Development Division (REDD), to administer a rural downtown transformation
5 grant program pursuant to this section. The program shall provide neighborhood revitalization
6 and community development enhancement grants to enable eligible units of local government to
7 fully leverage resources toward enhancing their communities' prospects for economic growth. Of
8 the funds allocated in this section, twenty-five million dollars ($25,000,000) shall be used for
9 neighborhood revitalization grants and twenty-five million dollars ($25,000,000) shall be used
10 for community development enhancement grants, consistent with this section. A unit of local
11 government shall not receive more than one million dollars ($1,000,000) in Rural Downtown
12 Transformation grants under this Program."
13
14 EDPNC MARKETING FUNDING CLARIFICATIONS
15 SECTION 11.4.(a) Section 11.11 of S.L. 2021-180, as amended by Section 4.1 of
16 S.L. 2021-189, is repealed.
17 SECTION 11.4.(b) There is appropriated from the Economic Development Project
18 Reserve established in Section 2.2 of S.L. 2021-180 to the Department of Commerce for the
19 nonprofit corporation with which the Department contracts pursuant to G.S. 143B-431.01(b) the
20 sum of sixty million dollars ($60,000,000) to be used for the following purposes in the following
21 amounts:
22 (1) Thirty million dollars ($30,000,000) for travel and tourism marketing of the
23 State.
24 (2) Thirty million dollars ($30,000,000) for business marketing of the State.
25 Of the funds allocated in subdivisions (1) and (2) of this subsection, the nonprofit
26 corporation shall use no more than twenty million dollars ($20,000,000) for each purpose by June
27 30, 2023, and the remainder of the funds allocated by this section by December 31, 2024. The
28 nonprofit corporation may use up to three percent (3%) of the total funds allocated in this section
29 for administrative costs.
30 SECTION 11.4.(c) The nonprofit corporation with which the Department contracts
31 pursuant to G.S. 143B-431.01(b) may use the funds appropriated for business marketing of the
32 State in subsection (b) of this section to market the State to the defense industry. No later than
33 September 15 of each year in which funds are expended, the Department shall submit a report
34 detailing the expenditure of the funds for this purpose to the following: (i) the chairs of the Joint
35 Legislative Oversight Committee on Agriculture and Natural and Economic Resources, (ii) the
36 chairs of the Joint Legislative Oversight Committee on General Government, and (iii) the Fiscal
37 Research Division.
38
39 RURAL TOURISM RECOVERY FUNDS AND PILOT PROGRAM MODIFICATIONS
40 SECTION 11.5. Section 11.11A of S.L. 2021-180, as amended by Section 4.2 of
41 S.L. 2021-189, reads as rewritten:
42 "SECTION 11.11A.(a) Allocation. – Of the funds appropriated from the State Fiscal
43 Recovery FundEconomic Development Project Reserve established in Section 2.2 of this act to
44 the Department of Commerce (Department) in this act, the sum of one million five hundred
45 thousand dollars ($1,500,000) shall be allocated to the North Carolina nonprofit corporation with
46 which the Department contracts pursuant to G.S. 143B-431.01(b) for the establishment of a pilot
47 program in accordance with this section. The funds allocated in this section shall be used as
48 follows:
49 (1) One million three hundred fifteen thousand dollars ($1,315,000) for marketing
50 expenses.
51 (2) Forty-five thousand dollars ($45,000) for administrative costs.

1 (3) Seventy thousand dollars ($70,000) for one temporary full-time equivalent
2 position in Visit NC.
3 (4) Seventy thousand dollars ($70,000) for one temporary full-time equivalent
4 position in the nonprofit corporation with which the Department contracts
5 pursuant to G.S. 143B-431.01(b).
6 "SECTION 11.11A.(b) Program. – The North Carolina Rural Tourism Recovery Pilot
7 Program (Program) is established. The Program shall initially be conducted and administered in
8 the following counties: Chowan, Edgecombe, Gates, Graham, Halifax, Haywood, Hertford,
9 Madison, Martin, Mitchell, Perquimans, Tyrrell, Vance, Warren, Washington, and Yancey. The
10 Program shall begin in those counties on March September 1, 2022, and terminate on December
11 30, 2023.
12 …
13 "SECTION 11.11A.(d) Reports. – The Department, in coordination with the nonprofit
14 corporation and Visit NC, shall provide a report no later than April December 1, 2022, to the
15 chairs of the Joint Legislative Economic Development and Global Engagement Oversight
16 Committee and the Fiscal Research Division on the implementation of the Program and
17 information reported by participating counties, Tourism Development Authorities, destination
18 marketing organizations, and local businesses. The report shall include, at a minimum, all of the
19 following:
20 (1) Recommendations on expansion of the Program to other counties in the State.
21 (2) Recommendations regarding legislative proposals or additional funding
22 needed to execute or expand the Program and whether the Program should be
23 expanded.
24 The Department, in coordination with the nonprofit corporation and Visit NC, shall submit a
25 report no later than May 1, 2023, to the chairs of the House Appropriations Committee, the chairs
26 of the Senate Appropriations/Base Budget Committee, and the Fiscal Research Division
27 containing, at a minimum, all of the following:
28 (1) Data on outcomes related to the implementation of the Program.
29 (2) The expenditure of funds provided for in this section.
30 (3) Recommendations on modification or expansion of the Program, including
31 the need for continued support with State funds."
32
33 JMAC PROGRAM EXPANSION
34 SECTION 11.6.(a) G.S. 143B-437.012 reads as rewritten:
35 "§ 143B-437.012. Job Maintenance and Capital Development Fund.
36 …
37 (d) Eligibility. – A business is eligible for consideration for a grant under this section if
38 it satisfies the conditions of subdivision (1), (1a), (2), or (2a) (2a), or (2b) of this subsection and
39 satisfies subdivision (4) of this subsection:
40 …
41 (2b) The business is a supply-chain-impact manufacturing employer. A business is
42 a supply-chain-impact manufacturing employer if the business meets the
43 following requirements:
44 a. The business is in manufacturing, as defined in G.S. 105-129.81,
45 manufactures a product used primarily and significantly in the
46 construction of residential and commercial buildings, and is investing
47 in its manufacturing process to transition away from utilizing
48 coal-based energy byproducts to other alternatives.
49 b. The Department certifies that the business has invested or intends to
50 invest at least one hundred ten million dollars ($110,000,000) of
51 private funds in improvements to real property and additions to

1 tangible personal property in the project within a five-year period
2 beginning with the time the investment commences.
3 c. The business and its affiliated companies (i) employ at least 420
4 full-time employees or equivalent full-time contract employees in the
5 State at the time the application is made and (ii) agree to maintain at
6 least 420 full-time employees or equivalent full-time contract
7 employees in the State for the full term of the grant.
8 d. The business has operations in a development tier two area at the time
9 the business applies for a grant, and the business agrees to maintain or
10 increase the development tier two area operations for the term of the
11 agreement.
12 (3) Repealed by Session Laws 2014-118, s. 1, effective July 1, 2014.
13 (4) All newly hired employees of the business must be citizens of the United
14 States or have proper identification and documentation of their authorization
15 to reside and work in the United States.
16 (e) Wage Standard. – A business is eligible for consideration for a grant under this section
17 only if the business satisfies a wage standard at the project that is the subject of the agreement.
18 A For an agreement with a business and its affiliated companies, the wage standard is met if (i)
19 the pay for employees located in the lowest development tier is at least equal to one hundred
20 forty percent (140%) of the average wage for all insured in the county and (ii) the pay for all
21 other employees is at least equal to one hundred forty percent (140%) of the greater of the average
22 wage for all insured in the county where the position was located at the time the agreement was
23 entered or, if the position is transferred to another area in the State, the average wage for all
24 insured in the county to which the position is transferred. For any other agreement, a business
25 satisfies the wage standard if it pays an average weekly wage that is at least equal to one hundred
26 forty percent (140%) of the average wage for all insured private employers in the county. The
27 Department of Commerce shall annually publish the wage standard for each county. In making
28 the wage calculation, the business shall include any jobs that were filled for at least 1,600 hours
29 during the calendar year, regardless of whether the jobs are full-time positions or equivalent
30 full-time contract positions. Each year that a grant agreement is in effect, the business shall
31 provide the Department a certification that the business continues to satisfy the wage standard.
32 If a business fails to satisfy the wage standard for a year, the business is not eligible for a grant
33 payment for that year.
34 …
35 (n) Limitations. – The Department may enter into no more than seven eight agreements
36 under this section. The total aggregate cost of all agreements entered into under this section may
37 not exceed one hundred fifty-four fifty-nine million dollars ($154,000,000). ($159,000,000). The
38 total annual cost of an agreement entered into under this section may not exceed six million
39 dollars ($6,000,000)."
42 2022-2023 fiscal year the sum of five million dollars ($5,000,000) in nonrecurring funds for
43 purposes consistent with this section.
44
45 REVISE SPORTS CHAMPIONSHIP EMPLOYER CAP
46 SECTION 11.7.(a) G.S. 143B-437.02(l), as amended by Section 11.16 of S.L.
48 "(l) Limitations. – The Department may enter into no more than two agreements under
49 this section. The total aggregate cost of all agreements entered into under this section may not
50 exceed forty-two million dollars ($42,000,000).forty-nine million dollars ($49,000,000)."

3 2022-2023 fiscal year the sum of seven million dollars ($7,000,000) in nonrecurring funds for
4 purposes consistent with this section.
5
6 COLLEGIATE SPORTS EMPLOYER RETENTION FUNDS
7 SECTION 11.8.(a) Appropriation. – Provided the Department of Commerce enters
8 into an agreement comporting with the requirements of subsection (b) of this section with a
9 qualifying collegiate sports employer, there is appropriated from the Economic Development
10 Project Reserve established in Section 2.2 of S.L. 2021-180 to the Department of Commerce
11 (Department) for the 2022-2023 fiscal year the sum of fifteen million dollars ($15,000,000) in
12 nonrecurring funds to be granted to a qualifying collegiate sports employer that is procuring and
13 upfitting a new headquarters located in the State. The provisions of G.S. 143C-6-23(d) and the
14 rules adopted pursuant thereto do not apply to the funds appropriated in this section. The
15 definitions of G.S. 143B-437.51 apply in this subsection, and, as used in this section, the term
16 "qualifying collegiate sports employer" is an entity with four charter members that are institutions
17 of higher education in the State that meets the following requirements:
18 (1) The entity will locate and occupy within the State its headquarters facility for
19 a continuous period of at least 15 years.
20 (2) The entity is a regional collegiate sports nonprofit organization and governing
21 body that is responsible for staging and holding championship events for its
22 members in the State. The championship events held within the State by the
23 conclusion of the 2032-33 academic year must include all of the following:
24 a. Four men's collegiate basketball postseason championship
25 tournaments in addition to those already scheduled at the time the
26 agreement is entered. At least two of the tournaments required by this
27 sub-subdivision must be held in the City of Greensboro.
28 b. Four women's collegiate basketball postseason championship
29 tournaments in addition to those already scheduled at the time the
30 agreement is entered.
31 c. Four men's collegiate baseball postseason championship tournaments
32 in addition to those already scheduled at the time the agreement is
33 entered.
34 d. Twenty other collegiate postseason championship tournaments in
35 addition to those already scheduled at the time the agreement is entered
36 or otherwise are already slated to be held in the State as a result of a
37 set cycle of championship tournaments in the sport among the
38 members of the qualifying collegiate sports employer.
39 (3) The entity will report to the Department annually on June 1 of each year
40 following the year the agreement is entered on the number of championship
41 tournaments required by subdivision (2) of this subsection that have been
42 fulfilled. The report required by this subdivision may cease in the year after
43 the year in which the entity reports all such championship tournament
44 requirements have been fulfilled.
45 SECTION 11.8.(b) Agreement. – The Department shall enter into an agreement with
46 the entity identified in subsection (a) of this section. The agreement is binding and constitutes a
47 continuing contractual obligation of the State and the entity benefitted by the funds allocated for
48 improving the project site. The agreement must include all of the performance criteria, remedies,
49 and other safeguards required by the Department to secure the State's benefit derived from
50 improvements to the headquarters site funded by this section and must require the entity to repay
51 a proportionate amount of the grant, using the metric least fulfilled in the agreement, for failure

1 by the entity to meet and maintain the applicable performance criteria on which the grant was
2 based.
3 SECTION 11.8.(c) Report. – On September 1 of each year requirements set forth in
4 the agreement entered into pursuant to subsection (b) of this section remain unfulfilled, the
5 Department shall report to the House of Representatives and the Senate committee or
6 subcommittee responsible for natural and economic resources, to the Joint Legislative Economic
7 Development and Global Engagement Oversight Committee, and to the Fiscal Research
8 Division. The report shall include an executive summary of the performance criteria, remedies,
9 and safeguards required by the Department, a description of the current status of the project, the
10 amount of grant paid under the agreement, and the number and classification of postseason
11 championship tournaments required and held in this State.
12
13 ECONOMIC DEVELOPMENT TRANSFORMATIVE PROJECT FUNDS
14 SECTION 11.9.(a) Appropriation. – Provided the Economic Investment Committee
15 awards a Job Development Investment Grant for a qualifying project in Chatham County, there
16 is appropriated from the Economic Development Project Reserve established in Section 2.2 of
17 S.L. 2021-180 to the Department of Commerce (Department) for the 2022-2023 fiscal year the
18 sum of four hundred fifty million dollars ($450,000,000) in nonrecurring funds. The definitions
19 of G.S. 143B-437.51 apply in this subsection, and, as used in this section, a qualifying project is
20 a transformative project for which the agreement requires that the business manufacture electric
21 vehicles at the project site, invest at least three billion dollars ($3,000,000,000) in private funds,
22 and create at least 6,000 eligible positions. The Department shall allocate the funds appropriated
23 in this subsection as follows:
24 (1) One hundred twenty-five million dollars ($125,000,000) to reimburse the
25 business for its costs for site work, roadwork, and wetlands mitigation
26 associated with such works needed at the project site.
27 (2) Two hundred fifty million dollars ($250,000,000) to be transferred to the
28 Department of Transportation for public roadwork and associated wetlands
29 mitigation needed to support the project; provided, however, that the
30 Department shall retain fifty million dollars ($50,000,000) of the amount to
31 be transferred until the business has created 3,875 eligible positions.
32 Notwithstanding any other provision of law, the Department of Transportation
33 is authorized to utilize Progressive Design Build, Construction Management
34 General Contractor, or any other procurement methodology to contract for the
35 delivery of improvements for which funds are provided in this subdivision.
36 (3) Seventy-five million dollars ($75,000,000) to be granted to the City of Sanford
37 for water and sewer infrastructure improvements needed to support the
38 project.
39 SECTION 11.9.(b) Agreement. – The Department shall enter into an agreement with
40 the business identified in subsection (a) of this section. The agreement is binding and constitutes
41 a continuing contractual obligation of the State and the business benefitted by the funds allocated
42 for improving the project site. The agreement must (i) include all of the performance criteria,
43 remedies, and other safeguards required by the Department to secure the State's benefit derived
44 from improvements to the project site funded by this section, (ii) require the business to repay a
45 proportionate amount of reimbursement, using the metric least fulfilled in the agreement, paid to
46 the business under this section for failure by the business to meet and maintain the applicable
47 performance criteria on which the reimbursement paid was based, and (iii) be secured by an
48 assignable, recordable option and right to the State to purchase the project site, recorded as first
49 priority against the project site. The State's performance under the option is deemed complete
50 and not executory upon the appropriation of funds for a qualifying project under this section. In
51 the event the option is exercised on all or a portion of the project site by the State or the State's

1 assignee, the Department may utilize unspent and unencumbered funds appropriated in this
2 section to provide a grant to a unit of local government in which the project site is located to
3 support acquisition of the project site. With the State's participation, the project site cannot
4 transfer to another entity without the prior express approval of the Secretary of Commerce.
5 SECTION 11.9.(c) Report. – On September 1 of each year funds appropriated in this
6 section remain unexpended until all funds have been expended, the Department shall report on
7 the use of such funds to the House of Representatives and the Senate committee or subcommittee
8 responsible for natural and economic resources, to the Joint Legislative Economic Development
9 and Global Engagement Oversight Committee, and to the Fiscal Research Division. The report
10 shall include, at a minimum, an executive summary of the performance criteria, remedies, and
11 safeguards required by the Department for the funds, a description of the current status of the
12 project, the amount that was paid in the prior fiscal year, for what purpose the amount was paid,
13 and the total amount that has been paid under the agreement.
14
15 ECONOMIC DEVELOPMENT HIGH-YIELD PROJECT FUNDS
16 SECTION 11.10.(a) Appropriation. – Provided the Economic Investment
17 Committee awards a Job Development Investment Grant for a qualifying project in Chatham
18 County, there is appropriated from the Economic Development Project Reserve established in
19 Section 2.2 of S.L. 2021-180 to the Department of Commerce (Department) for the 2022-2023
20 fiscal year the sum of one hundred twelve million five hundred thousand dollars ($112,500,000)
21 in nonrecurring funds. The definitions of G.S. 143B-437.51 apply in this subsection, and, as used
22 in this section, a qualifying project is a high-yield project for which the agreement requires that
23 business manufacture computer chips at the project site, invest at least four billion eight hundred
24 million dollars ($4,800,000,000) in private funds, and create at least 1,800 eligible positions. The
25 Department shall allocate the funds appropriated in this subsection as follows:
26 (1) Fifty-seven million five hundred thousand dollars ($57,500,000) to reimburse
27 the business for costs the Department certifies the business incurred for site
28 work and wetlands mitigation associated with such works needed at the site
29 of the qualifying project. For purposes of this section, site work includes
30 clearing, grading, and development of a build-ready pad.
31 (2) Fifty-five million dollars ($55,000,000) to be granted to the City of Asheboro
32 for water infrastructure improvements needed to support the qualifying
33 project.
34 SECTION 11.10.(b) Agreement. – The Department shall enter into an agreement
35 with the business identified in subsection (a) of this section. The agreement is binding and
36 constitutes a continuing contractual obligation of the State and the business benefitted by the
37 funds allocated for improving the project site. The agreement must (i) include all of the
38 performance criteria, remedies, and other safeguards required by the Department to secure the
39 State's benefit derived from improvements to the project site funded by this section and (ii)
40 require the business to repay a proportionate amount of reimbursement, using the metric least
41 fulfilled in the agreement, paid to the business under this section for failure by the business to
42 meet and maintain the applicable performance criteria on which the reimbursement paid was
43 based.
44 SECTION 11.10.(c) Report. – On September 1 of each year funds appropriated in
45 this section remain unexpended until all funds have been expended, the Department shall report
46 on the agreement entered into pursuant to subsection (b) of this section to the House of
47 Representatives and the Senate committee or subcommittee responsible for natural and economic
48 resources, to the Joint Legislative Economic Development and Global Engagement Oversight
49 Committee, and to the Fiscal Research Division. The report shall include, at a minimum, an
50 executive summary of the performance criteria, remedies, and safeguards required by the
51 Department, a description of the current status of the project, the amount of reimbursement that

1 was paid in the prior fiscal year, and the total amount of reimbursement that has been paid under
2 the agreement.
3
4 MEGASITES READINESS PROGRAM
5 SECTION 11.11.(a) Purpose. – It is in the best economic and developmental
6 interests of the State to support the development of megasites to ensure the State's ongoing
7 competitiveness for major manufacturing opportunities, including the aerospace, automotive,
8 clean energy, food processing, and life science industries. The purpose of this section is to
9 establish a competitive grant program serving to do the following:
10 (1) Identify and evaluate up to five megasites for preferred development and
11 marketing.
12 (2) Enable local governments or a partnership of local governments to acquire a
13 newly identified or existing megasite.
14 (3) Support local governments or a partnership of local governments to install or
15 upgrade public infrastructure, including publicly owned water, gas, and sewer
16 systems, transportation infrastructure, and the electrical utility lines necessary
17 to meet the needs of prospective employers for megasites.
18 (4) Support local governments or a partnership of local governments to fund
19 on-site preparation, including clearing, grading, or other related expenses for
20 megasites.
21 (5) Facilitate coordination between the economic development entities and the
22 North Carolina Department of Environmental Quality to expedite any
23 environmental needs related to timely site development.
24 SECTION 11.11.(b) Fund Established. – There is created in the Department a
25 special fund to be known as the North Carolina Megasite Fund for grants awarded by EDPNC
26 for purposes consistent with this section. EDPNC shall be responsible for administering the
27 program. The provisions prohibiting EDPNC from awarding of grants contained in
28 G.S. 143B-431.01 do not apply to the Fund.
29 SECTION 11.11.(c) Definitions. – The following definitions apply in this section:
30 (1) Department. – The Department of Commerce.
31 (2) EDPNC. – The entity with which the Department contracts pursuant to
32 G.S. 143B-431.01.
33 (3) Fund. – The North Carolina Megasite Fund.
34 (4) Government partnership. – Either (i) a North Carolina nonprofit entity that is
35 tax exempt under section 501(c)(3) of the Internal Revenue Code in
36 partnership with one or more local governments or (ii) a group of local
37 governments.
38 (5) Megasite. – A parcel of contiguous property consisting of more than 1,000
39 acres that is viable for industrial development and listed in the report produced
40 pursuant to subsection (d) of this section.
41 SECTION 11.11.(d) Allocation. – EDPNC shall allocate monies in the Fund on the
42 following basis:
43 (1) The first one million dollars ($1,000,000) appropriated to the Fund for
44 engaging a national site selection firm through a competitive bid process to
45 produce a report evaluating sites in the State and determining the five
46 megasites best positioned for advanced manufacturing site selection searches
47 conducted by major employers.
48 (2) All other funds appropriated to the Fund for local government grants for the
49 acquisition of megasites determined pursuant to subdivision (1) of this
50 subsection. A grant for a megasite is limited to eighty-five percent (85%) of
51 the lesser of the property's purchase price or tax value. The percentage actually

1 provided in the grant shall be determined by EDPNC based on total
2 development needs for the megasite, prior investment in the megasite by one
3 or more local governments, the ability of one or more local governments to
4 invest in the megasite, and the ability and level of participation promised by
5 the local government in exchange for a grant from the Fund. Monies may only
6 be granted for, and used to acquire, a megasite for which (i) one or more local
7 governments have a binding option or offer to purchase and (ii) all basic due
8 diligence must be complete, including, but not limited to, boundary surveys,
9 title searches, State Historic Preservation Office reviews, and wetlands
10 delineation.
11 SECTION 11.11.(e) Matching Funds. – The local governments to which a grant is
12 awarded shall provide the remainder of the cost of purchasing the megasite not provided by the
13 grant.
14 SECTION 11.11.(f) Agreements Required. – Monies may be disbursed from the
15 Fund only in accordance with agreements entered into between EDPNC and a local government
16 or a government partnership. The agreement must include all of the performance criteria,
17 remedies, and other safeguards required to secure the assistance provided to ready the megasite
18 for a major employer and must require EDPNC to recapture a proportionate amount of assistance
19 provided under this section for failure by a local government or government partnership to meet
20 and maintain the megasite for availability for the purposes for which the assistance was provided.
21 SECTION 11.11.(g) Reporting. – EDPNC shall file an annual report to the
22 Department on or before April 1 of each year. The annual report prepared will document total
23 amount of grants awarded, matching funds required, activities to ready megasites and associated
24 costs, any major employers locating at an improved or acquired megasite, and the unallocated
25 amount for grants remaining in the Fund. The Department shall prepare and file on or before
26 May 1 of each year with the Senate Appropriations Committee on Agriculture, Natural, and
27 Economic Resources; the House of Representatives Appropriations Committee on Agriculture
28 and Natural and Economic Resources; the Joint Legislative Economic Development and Global
29 Engagement Oversight Committee; the Office of State Budget and Management; and the Fiscal
30 Research Division a consolidated report for the preceding fiscal year concerning the information
31 required by this section.
32 SECTION 11.11.(h) Program Guidelines. – EDPNC shall develop guidelines related
33 to the administration of this program. At least 20 days before the effective date of any guidelines
34 or nontechnical amendments to the guidelines, EDPNC shall publish the proposed guidelines on
35 its website and provide notice to persons who have requested notice of proposed guidelines. In
36 addition, EDPNC must accept oral and written comments on the proposed guidelines and shall
37 in its discretion consider such comments before finalizing the guidelines, during the 15 business
38 days beginning on the first day that EDPNC has completed these notifications. Guidelines
39 adopted under this section shall not be subject to the requirements of Article 2A of Chapter 150B
41
42 RAPID RECOVERY LOAN EXTENSION
43 SECTION 11.12.(a) Section 4.2 of S.L. 2020-4, as amended by Section 1.6 of S.L.
44 2020-97 and Section 20.11 of S.L. 2022-6, reads as rewritten:
45 "SECTION 4.2.(a) Program. – Of the funds allocated in subdivision (45) of Section 3.3 of
46 this act, Golden LEAF shall provide grants to entities for the purpose of making emergency loans
47 to assist small businesses with business needs during periods of economic hardship occasioned
48 by the COVID-19 pandemic. It is the intent of the General Assembly for an equitable portion of
49 funds allocated in this section to be used for the benefit of historically underutilized small
50 businesses. The following shall apply to the program and loans made under the program:
51 …

1 (5) Except as provided in subdivision (9a) of this subsection, the term of the loan
2 shall not exceed 120 144 months and shall be amortized over the term of the
3 loan.
4 …
5 "SECTION 4.2.(b) Definitions. – For purposes of this section, the following definitions
6 apply:
7 …
8 (4) Net loan funds. – The total loan fund allocation authorized in subdivision (45)
9 of Section 3.3 of this act less (i) the amount used in accordance with
10 subdivision (a)(3a) of this section, (ii) the maximum amount allowed under
11 applicable federal law or guidance for the cost of administering the loans made
12 under the program, not to exceed five percent (5%) of the total amount loaned
13 under the program, and (iii) the State's loan funds that are not
14 recaptured.recaptured, and (iv) an amount equal to the amount of non-State
15 funds provided as matching funds pursuant to subsection (c) of this section.
16 …."
17 SECTION 11.12.(b) This section is effective when it becomes law and applies to
18 loans made under the program before, on, or after that date.
19
20 INCREASE QUALIFYING PROJECT FUNDING IN RANDOLPH COUNTY
21 SECTION 11.13.(a) Provided (i) the condition regarding election in Section
22 11.19(c) of S.L. 2021-180 imposed on the manufacturer is met and (ii) the manufacturer agrees
23 to, no later than December 31, 2034, both create at least 5,000 eligible and expansion positions
24 in, and invest at least four billion seven hundred million dollars ($4,700,000,000) in private funds
25 in, this State, there is appropriated from the Economic Development Project Reserve established
26 in Section 2.2 of S.L. 2021-180 to the Department of Commerce (Department) for the 2022-2023
27 fiscal year the sum of two hundred twenty-five million dollars ($225,000,000). Private funds, as
28 used in this section, do not include funds received from or reimbursed by the State. The
29 Department shall allocate the funds appropriated in this section as follows:
30 (1) One hundred seventy-five million dollars ($175,000,000) for reimbursement
31 of costs incurred by the manufacturer for purposes listed in Section 11.19(c)
32 of S.L. 2021-180. Funds appropriated in this subsection are subject to
33 proportionate recapture in the event the manufacturer fails to meet the
34 requirements set forth in this section.
35 (2) Fifty million dollars ($50,000,000) for payments to the manufacturer for
36 creating and maintaining, of the 5,000 eligible and expansion positions
37 required by this section, the final 1,125 positions (qualifying positions). For
38 the year in which a qualifying position is first filled, the Department shall pay
39 the manufacturer the sum of forty-four thousand four hundred forty-four
40 dollars and forty-four cents ($44,444.44). A manufacturer that fails to
41 maintain a qualifying position through the requirement term is disqualified
42 from retaining the full amount received for the qualifying position in the year
43 in which the failure occurs, may not again be paid for the qualifying position
44 for any remaining year of the requirement term, and must pay to the
45 Department a forfeiture amount. The forfeiture amount is equal to the product
46 of forty-four thousand four hundred forty-four dollars and forty-four cents
47 ($44,444.44) multiplied by a fraction, the numerator of which is the number
48 of years remaining in the requirement term, including the year of the failure,
49 and the denominator of which is 20. The requirement term ends 20 years from
50 the date that all 5,000 eligible and expansion positions are filled or December
51 31, 2054, whichever is earlier. A manufacturer may receive an annual

1 disbursement of a grant amount owed pursuant to the economic development
2 agreement under G.S. 143B-437.57 only after the Economic Investment
3 Committee established pursuant to G.S. 143B-437.54 has certified there are
4 no outstanding forfeiture amounts.
5 SECTION 11.13.(b) On September 1 of each year funds appropriated in this section
6 or in Section 11.19 of S.L. 2021-180 remain unexpended until all funds have been expended, the
7 Department shall report on the use of such funds to the House of Representatives and the Senate
8 committee or subcommittee responsible for natural and economic resources, to the Joint
9 Legislative Economic Development and Global Engagement Oversight Committee, and to the
10 Fiscal Research Division. The report shall include, at a minimum, an executive summary of the
11 performance criteria, remedies, and safeguards required by the Department for the funds, a
12 description of the current status of the project, the amount that was paid in the prior fiscal year,
13 for what purpose the amount was paid, and the total amount that has been paid under the
14 agreement.
15
16 PART XII. ENVIRONMENTAL QUALITY
17
18 AMEND SHALLOW DRAFT NAVIGATION CHANNEL DREDGING AND COASTAL
19 STORM DAMAGE MITIGATION FUNDS
20 SECTION 12.1.(a) Part 8B of Article 21 of Chapter 143 of the General Statutes
22 "Part 8B. Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund.
23 "§ 143-215.73F. Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund.
24 (a) Fund Established. – The Shallow Draft Navigation Channel Dredging and Aquatic
25 Weed Fund is established as a special revenue fund. The Fund consists of fees credited to it under
26 G.S. 75A-3 and G.S. 75A-38, taxes credited to it under G.S. 105-449.126, and funds contributed
27 by non-State entities.
28 (b) Uses of Fund. – Revenue in the Fund may only be used for the following purposes:
29 (1) To provide the State's share of the costs associated with any dredging project
30 designed to keep shallow draft navigation channels located in State waters or
31 waters of the state located within lakes navigable and safe.
32 (2) For aquatic weed control projects in waters of the State under Article 15 of
33 Chapter 113A of the General Statutes. Funding for aquatic weed control
34 projects is limited to one million dollars ($1,000,000) in each fiscal year.
35 (3) For the compensation of a beach and inlet management project manager with
36 the Division of Coastal Management of the Department of Environmental
37 Quality for the purpose of overseeing all activities related to beach and inlet
38 management in the State. Funding for the position is limited to ninety-nine
39 thousand dollars ($99,000) in each fiscal year.
40 (4) To provide funding for siting and acquisition of dredged disposal easement
41 sites associated with the maintenance of the Atlantic Intracoastal Waterway
42 between the border with the state of South Carolina and the border with the
43 Commonwealth of Virginia, under a Memorandum of Agreement between the
44 State and the federal government.
45 (b1) Grants Authorized. – The Secretary is authorized to accept applications for grants for
46 nonfederal costs of projects sponsored by (i) units of local government for the purpose set forth
47 in subdivision (1) of subsection (b) of this section and (ii) units of local government and other
48 entities for the purpose set forth in subdivision (2) of subsection (b) of this section.
49 (c) Cost-Share. – Any project funded by revenue from the Fund must be cost-shared with
50 non-State dollars as follows:

1 (1) The cost-share for dredging projects located, in whole or part, in a
2 development tier one area, as defined in G.S. 143B-437.08, shall be at least
3 one non-State dollar for every three dollars from the Fund.
4 (2) The cost-share for dredging projects not located, in whole or part, in a
5 development tier one area shall be at least one non-State dollar for every two
6 dollars from the Fund.
7 (3) The cost-share for an aquatic weed control project shall be at least one
8 non-State dollar for every dollar from the Fund. The cost-share for an aquatic
9 weed control project located within a component of the State Parks System
10 shall be provided by the Division of Parks and Recreation of the Department
11 of Natural and Cultural Resources. The Division of Parks and Recreation may
12 use funds allocated to the State Parks System for capital projects under
13 G.S. 143B-135.56 for the cost-share.
14 (4) The cost-share for the dredging of the access canal around the Roanoke Island
15 Festival Park shall be paid from the Historic Roanoke Island Fund established
16 by G.S. 143B-131.8A.
17 …
18 (g) Rules. – The Department shall adopt rules to implement the grant programs
19 authorized under subsection (b1) of this section."
20 SECTION 12.1.(b) Part 8D of Article 21 of Chapter 143 of the General Statutes
22 "Part 8D. Coastal Storm Damage Mitigation Fund.
23 "§ 143-215.73M. Coastal Storm Damage Mitigation Fund.
24 (a) Fund Established. – The Coastal Storm Damage Mitigation Fund is established as a
25 special revenue fund. The Fund consists of General Fund appropriations, gifts, grants, devises,
26 monies contributed by a non-State entity for a particular beach nourishment or damage mitigation
27 project or group of projects, and any other revenues specifically allocated to the Fund by an act
28 of the General Assembly.
29 (b) Uses of the Fund. – Revenue credited to the Fund may only be used for costs
30 associated with beach nourishment, artificial dunes, and other projects to mitigate or remediate
31 coastal storm damage to the ocean beaches and dune systems of the State.
32 (b1) Grants Authorized. – The Secretary is authorized to accept applications for grants for
33 nonfederal costs of projects sponsored by units of local government for the purpose set forth in
34 subsection (b) of this section.
35 (c) Conditions on Funding. – Any project funded by revenue from the Fund must be
36 cost-shared with non-State dollars on a basis of at least one non-State dollar for every one dollar
37 from the Fund.
38 (d) Return of Non-State Entity Funds. – Non-State entities that contribute to the Fund for
39 a particular project or group of projects may make a written request to the Secretary that the
40 contribution be returned if the contribution has not been spent or encumbered within two years
41 of receipt of the contribution by the Fund. If the written request is made prior to the funds being
42 spent or encumbered, the Secretary shall return the funds to the entity within 30 days after the
43 later of (i) receiving the request or (ii) the expiration of the two-year period described by this
44 subsection.
45 (e) Report. – The Department shall report annually no later than October 1 regarding
46 projects funded under this section to the Fiscal Research Division and the Joint Legislative
47 Oversight Committee on Agriculture and Natural and Economic Resources. The report shall
48 include project type, project location, brief project description, entity receiving the funding, and
49 amount of funding provided.
50 (f) Rules. – The Department shall adopt rules to implement the grant program authorized
51 under subsection (b1) of this section."

1 SECTION 12.1.(c) The Department of Environmental Quality shall adopt temporary
2 rules to implement G.S. 143-215.73F(b1) and G.S. 143-215.73M(b1), as enacted by this section,
3 which shall include any policies or guidelines to be applied in the administration of grants.
4 Notwithstanding G.S. 150B-21.1(d), the temporary rules required by this act shall remain in
5 effect until the effective date of permanent rules adopted to replace these temporary rules. The
6 Department is exempt from the fiscal note requirement of G.S. 150B-21.4 and from the Rules
7 Review Commission review under Part 3 of Chapter 150B of the General Statutes in adopting
8 rules to implement this section.
9
10 EMERALD ISLE WILDLIFE BOAT RAMP DREDGING FUNDS
11 SECTION 12.2. Notwithstanding G.S. 143-215.73F, if the Town of Emerald Isle
12 receives an award from the Shallow Draft Navigation Channel Dredging and Aquatic Weed Fund
13 for the dredging of the North Carolina Wildlife Resources Commission Boating Access Area,
14 there shall be no match required.
15
16 CARTERET COUNTY COASTAL STORM DAMAGE FUNDS
17 SECTION 12.3. Notwithstanding any other provision of law, Carteret County may
18 use up to one million five hundred thousand dollars ($1,500,000) remaining from grants awarded
19 from the Coastal Storm Damage Mitigation Fund in grant years 2018 and 2019 to reimburse the
20 county for expenditures related to the Sand Search 2.0 Phase 1 project.
21
22 DIVISION OF MARINE FISHERIES AIRCRAFT MAINTENANCE
23 SECTION 12.4. Section 13.16 of S.L. 2010-31 is repealed.
24
25 OYSTER SANCTUARY FUNDS
26 SECTION 12.5. Funds appropriated in this act to the Department of Environmental
27 Quality for a directed grant to the Coastal Federation for oyster sanctuaries shall be granted
28 contingent on the Coastal Federation obtaining at least one million dollars ($1,000,000) in new
29 federal matching funds for oyster sanctuary development. If this contingency is not met by June
30 30, 2023, the Coastal Federation shall return these funds to the Department and they shall revert
31 to the General Fund.
32
33 DRY-CLEANING SOLVENT CLEAN UP FUND CHANGES
34 SECTION 12.6.(a) G.S. 143-215.104C reads as rewritten:
35 "§ 143-215.104C. Dry-Cleaning Solvent Cleanup Fund.
36 …
37 (d) Up to one percent (1%) three percent (3%) of the amount of the Fund balance may be
38 used by the Department in each fiscal year for investigation of inactive hazardous substance
39 disposal sites that the Department reasonably believes to be contaminated by dry-cleaning
40 solvent. If the contamination is determined to originate from a dry-cleaning facility, a potentially
41 responsible party may petition for certification of the facility or abandoned facility site.
42 Acceptance of a petition shall be conditioned upon the written acceptance by the petitioner of
43 responsibility for the costs of investigation incurred by the Department pursuant to this
44 subsection. Costs of investigation that are recovered pursuant to this subsection shall not exceed,
45 and shall be credited toward, the financial responsibility of the petitioner pursuant to
46 G.S. 143-215.104F(f). If a potentially responsible party does not petition for certification of the
47 facility or abandoned facility site, the Commission may request the Attorney General to
48 commence a civil action to secure reimbursement of costs incurred under this subsection."
49 SECTION 12.6.(b) G.S. 143-215.104P reads as rewritten:
50 "§ 143-215.104P. Enforcement procedures; civil penalties.

1 (a) The Secretary may assess a civil penalty of not more than ten thousand dollars
2 ($10,000) or, if the violation involves a hazardous waste, as defined in G.S. 130-290, of not more
3 than twenty-five thousand dollars ($25,000) thirty-two thousand five hundred dollars ($32,500)
4 against any person who:
5 …
6 (b) If any action or failure to act for which a penalty may be assessed under subsection
7 (a) of this section is continuous, the Secretary may assess a penalty not to exceed ten thousand
8 dollars ($10,000) per day or, if the violation involves a hazardous waste, as defined in G.S.
9 130-290, not exceed twenty-five thousand dollars ($25,000) not to exceed thirty-two thousand
10 five hundred dollars ($32,500) per day. A penalty for a continuous violation shall not exceed two
11 hundred thousand dollars ($200,000) for each period of 30 days during which the violation
12 continues.
13 …."
14
15 EXPRESS STORMWATER PERMIT APPLICATION PROCESSING
16 SECTION 12.7. Any permit application for a post-construction stormwater permit
17 submitted pursuant to G.S. 143-214.7B that will be located in a coastal area, as defined in
18 G.S. 113A-103, may be submitted to either the Washington or Wilmington regional offices of
19 the Department of Environmental Quality at the option of the applicant.
20
21 WATER AND WASTEWATER INFRASTRUCTURE DIRECTED PROJECT
22 AMENDMENT
23 SECTION 12.8. Funds appropriated from the State Fiscal Recovery Fund to the
24 Department of Environmental Quality for the Water Infrastructure Fund and allocated to
25 Rockingham County and to the Town of Madison for water and wastewater infrastructure
26 projects by Section 12.13 of S.L. 2021-180, as amended by Section 6.1 of S.L. 2022-6, shall,
27 notwithstanding any provision of those acts to the contrary, be transferred by the Department of
28 Environmental Quality to the Office of State Budget and Management to provide grants in the
29 same amounts for the same purposes to the same recipients.
30
31 WATER AND SEWER INFRASTRUCTURE FUNDS
32 SECTION 12.9.(a) Allocation. – The sum of three hundred twenty-five million nine
33 hundred eighty thousand four hundred forty-four dollars ($325,980,444) in nonrecurring funds
34 appropriated for the 2022-2023 fiscal year from the Clean Water and Drinking Water Reserve,
35 established in Section 2.2 of this act, to the Department of Environmental Quality (Department)
36 for the Water Infrastructure Fund and the sum of two hundred eighty-five million five hundred
37 thousand dollars ($285,500,000) in nonrecurring funds appropriated for the 2022-2023 fiscal year
38 from the State Fiscal Recovery Fund to the Department for the Water Infrastructure Fund shall
39 be allocated to the Drinking Water Reserve and Wastewater Reserve to be used for the purposes
40 set forth in G.S. 159G-33(a)(2) and G.S. 159G-34(a)(2).
41 SECTION 12.9.(b) Limitation Not Applicable. – The limits set forth in
42 G.S. 159G-36(c)(3) shall not apply to grants awarded from funds allocated by this section.
43 SECTION 12.9.(c) Reversion of Unneeded Funds. – Funds in excess of the amounts
44 needed for the projects listed in subsection (e) of this section may be used by the Department for
45 other water and sewer infrastructure projects eligible for funding from the Drinking Water
46 Reserve or the Wastewater Reserve and subject to the applicable directives set forth in this
47 section. Reverted funds may also be used for grants to conduct project engineering, design, or
48 other preconstruction activities by a local government or public entity eligible for grants from
49 the same Reserve as the reverting local government or public entity.
50 SECTION 12.9.(d) Choice of Funding. – Funds allocated by this section from the
51 State Fiscal Recovery Fund shall be used by the Department to fund project grants the

1 Department determines are most likely to meet the deadline for expenditure of State Fiscal Relief
2 Funds set forth in applicable federal law and guidance. This subsection applies to both projects
3 set forth in subsection (e) of this section and project grants awarded under Article 2 of Chapter
4 159G of the General Statutes (as modified by this section) with funds allocated by this section.
5 SECTION 12.9.(e) Projects. – Of the funds allocated by subsection (a) of this section
6 for project grants, the following sums shall be granted to the indicated local governments and
7 public entities for water and wastewater infrastructure projects:
8 (1) Three hundred sixty thousand dollars ($360,000) to the Town of Andrews.
9 (2) Two million eight hundred twenty-five thousand dollars ($2,825,000) to the
10 Town of Angier.
11 (3) Five million dollars ($5,000,000) to Anson County.
12 (4) Three million six hundred thousand dollars ($3,600,000) to the City of
13 Archdale.
14 (5) Two million dollars ($2,000,000) to the Town of Banner Elk.
15 (6) Three million eight hundred thousand dollars ($3,800,000) to the Town of
16 Bladenboro.
17 (7) One hundred thousand dollars ($100,000) to the Town of Boardman.
18 (8) Two million seven hundred fifty thousand dollars ($2,750,000) to Buncombe
19 County for a flood mitigation project in Barnardsville.
20 (9) One million one hundred eighteen thousand two hundred forty-seven dollars
21 ($1,118,247) to Burke County.
22 (10) Seven million one hundred twenty-five thousand dollars ($7,125,000) to the
23 Cabarrus County Water and Sewer Authority.
24 (11) Three million two hundred fifty thousand dollars ($3,250,000) to the Town of
25 Cajah's Mountain.
26 (12) One million dollars ($1,000,000) to Catawba County.
27 (13) Two million dollars ($2,000,000) to the Town of Chadbourn.
28 (14) Three million dollars ($3,000,000) to the City of Cherryville.
29 (15) Two hundred fifty thousand dollars ($250,000) to the City of Claremont.
30 (16) Twenty-five million dollars ($25,000,000) to the Town of Clayton for Sam's
31 Branch Water Reclamation Facility.
32 (17) One million dollars ($1,000,000) to the Town of Coats.
33 (18) Five hundred thousand dollars ($500,000) to the Town of Columbus.
34 (19) Two million five hundred thousand dollars ($2,500,000) to Davidson County.
35 (20) Eight million dollars ($8,000,000) to Davie County.
36 (21) Five hundred thousand dollars ($500,000) to the Town of Denton.
37 (22) Three million six hundred thousand dollars ($3,600,000) to the City of
38 Elizabeth City, of which no less than one million dollars ($1,000,000) shall be
39 used for a new pump station to accommodate recent campus improvements at
40 Elizabeth City State University.
41 (23) Two million dollars ($2,000,000) to the Town of Elkin.
42 (24) Two million dollars ($2,000,000) to the Town of Elm City.
43 (25) One million dollars ($1,000,000) to the Town of Erwin.
44 (26) One million three hundred fifty thousand dollars ($1,350,000) to the Town of
45 Fair Bluff.
46 (27) Six thousand dollars ($6,000) to the Town of Fontana Dam.
47 (28) Eight million seven hundred fifty thousand dollars ($8,750,000) to Franklin
48 County.
49 (29) Eight hundred twenty thousand dollars ($820,000) to the Town of Franklin.
50 (30) Two million seven hundred thousand dollars ($2,700,000) to the Town of
51 Garland.

1 (31) Two million three hundred seventy-five thousand dollars ($2,375,000) to
2 Gaston County.
3 (32) Five hundred thousand dollars ($500,000) to the Town of Gibsonville.
4 (33) Ten million dollars ($10,000,000) to the City of Graham.
5 (34) Two hundred fifty thousand dollars ($250,000) to the Town of Harmony.
6 (35) Five hundred twenty-five thousand dollars ($525,000) to the Town of Haw
7 River.
8 (36) One hundred thousand dollars ($100,000) to the Town of Hayesville.
9 (37) Five million dollars ($5,000,000) to the City of Henderson for the Kerr Lake
10 Regional Water System expansion.
11 (38) Two hundred twenty thousand dollars ($220,000) to the Town of Highlands.
12 (39) Three million two hundred fifty thousand dollars ($3,250,000) to the City of
13 Jacksonville.
14 (40) Two million five hundred thousand dollars ($2,500,000) to the City of Kings
15 Mountain.
16 (41) Four million two hundred thousand dollars ($4,200,000) to the Town of
17 Landis.
18 (42) Eleven million two hundred fifty thousand dollars ($11,250,000) to the City
19 of Laurinburg.
20 (43) Five million dollars ($5,000,000) to Lenoir County.
21 (44) Six million three hundred thousand dollars ($6,300,000) to the City of Lenoir.
22 (45) Nine million two hundred fifty thousand dollars ($9,250,000) to the City of
23 Lillington.
24 (46) Eighteen million five hundred fifty thousand dollars ($18,550,000) to Lincoln
25 County to connect water service between Lincoln County and Gaston County.
26 (47) Four million seven hundred fifty thousand dollars ($4,750,000) to the Town
27 of Littleton.
28 (48) Two hundred fifty thousand dollars ($250,000) to the Town of Long View.
29 (49) One million dollars ($1,000,000) to the Town of Love Valley.
30 (50) Twenty-three million five hundred thousand dollars ($23,500,000) to the
31 Lower Cape Fear Water and Sewer Authority.
32 (51) Four million dollars ($4,000,000) to the Town of Marshville.
33 (52) Three million five hundred thousand dollars ($3,500,000) to the Town of
34 Mayodan.
35 (53) Eleven million nine hundred twenty-five thousand dollars ($11,925,000) to
36 the City of Mebane.
37 (54) Nine million five hundred thousand dollars ($9,500,000) to the Town of
38 Mooresville.
39 (55) One million one hundred eighteen thousand two hundred forty-seven dollars
40 ($1,118,247) to the City of Morganton.
41 (56) One million dollars ($1,000,000) to the Town of Mount Olive.
42 (57) Four million eight hundred eleven thousand dollars ($4,811,000) to the Town
43 of Mount Pleasant.
44 (58) Three hundred sixty thousand dollars ($360,000) to the Town of Murphy.
45 (59) Three million two hundred thousand dollars ($3,200,000) to the Town of
46 Newland.
47 (60) Thirty-three million seven hundred fifty thousand dollars ($33,750,000) to the
48 City of Newton.
49 (61) Fifteen million dollars ($15,000,000) to the Town of North Wilkesboro.
50 (62) Ten million dollars ($10,000,000) to the Onslow Water and Sewer Authority
51 for the Southeast Wastewater Treatment Plant.

1 (63) Four million eight hundred thousand dollars ($4,800,000) to the Town of
2 Pembroke.
3 (64) Two million dollars ($2,000,000) to the Town of Pilot Mountain.
4 (65) Two million five hundred thousand dollars ($2,500,000) to the Town of Pine
5 Level.
6 (66) Five million six hundred thirty-three thousand nine hundred fifty dollars
7 ($5,633,950) to the Town of Pink Hill, of which no less than two million two
8 hundred five thousand two hundred dollars ($2,205,200) shall be used for a
9 stormwater quality project.
10 (67) One million five hundred thousand dollars ($1,500,000) to the Town of
11 Princeton.
12 (68) Two million five hundred thousand dollars ($2,500,000) to Randolph County.
13 (69) One million dollars ($1,000,000) to the Town of Rich Square.
14 (70) Four million dollars ($4,000,000) to Richmond County.
15 (71) One hundred forty thousand dollars ($140,000) to the Town of Robbinsville.
16 (72) Three million five hundred thousand dollars ($3,500,000) to the Town of
17 Ronda.
18 (73) One million nine hundred thousand dollars ($1,900,000) to Rowan County.
19 (74) Two million dollars ($2,000,000) to the City of Sanford for service expansion
20 to Holly Springs and Fuquay-Varina.
21 (75) Ten million two hundred thousand dollars ($10,200,000) to the City of Shelby.
22 (76) Two million dollars ($2,000,000) to the Town of Siler City.
23 (77) Five hundred thousand dollars ($500,000) to the Town of Spring Lake.
24 (78) Nine hundred thousand dollars ($900,000) to Stanly County.
25 (79) Five million seven hundred thousand dollars ($5,700,000) to the Town of
26 Stanley.
27 (80) Five million dollars ($5,000,000) to the Stokes County Water and Sewer
28 Authority.
29 (81) Two hundred thirty-seven thousand dollars ($237,000) to the Town of
30 Swepsonville.
31 (82) One million eight hundred fifty thousand dollars ($1,850,000) to the Town of
32 Tabor City.
33 (83) Five hundred thousand dollars ($500,000) to the City of Thomasville.
34 (84) Nine hundred thousand dollars ($900,000) to the Town of Troutman.
35 (85) One million seven hundred fifty thousand dollars ($1,750,000) to Union
36 County.
37 (86) Eight million dollars ($8,000,000) to the Town of Walnut Cove to be allocated
38 as follows:
39 a. Six million four hundred thousand dollars ($6,400,000) to replace a
40 transmission main.
41 b. One million six hundred thousand dollars ($1,600,000) to replace
42 asbestos lines.
43 (87) Seven million five hundred thousand dollars ($7,500,000) to the Town of
44 Warsaw for wastewater capacity expansion.
45 (88) One million five hundred thousand dollars ($1,500,000) to the Town of West
46 Jefferson.
47 (89) One million dollars ($1,000,000) to Yadkin County.
48 (90) Three million fifty thousand dollars ($3,050,000) to Yancey County for a
49 wastewater treatment plant project.

1 SECTION 12.9.(f) Alternate Grant Disbursement Procedure. – The following
2 modifications to the disbursement procedure set forth in G.S. 159G-42 apply with respect to
3 projects designated in subsection (e) of this section:
4 (1) Twenty-five percent (25%) of the funds designated for a project grant shall be
5 disbursed to the grant recipient within 30 business days after the recipient
6 provides a complete Request for Funding form (including a project budget) to
7 the Department.
8 (2) The Department shall provide an additional payment of twenty-five percent
9 (25%) to a grant recipient after the grant recipient documents expenditures
10 totaling twenty-five percent (25%) of the project to the Department.
11 (3) The Department shall provide an additional payment of twenty-five percent
12 (25%) to a grant recipient after the grant recipient documents expenditures
13 totaling fifty percent (50%) of the project to the Department.
14 (4) The final twenty-five percent (25%) of the project grant amount will be
15 disbursed when the grant recipient documents expenditures in the full amount
16 of the project amount designated in subsection (e) of this section.
17 SECTION 12.9.(g) Bladen Community College Project. – Of the funds allocated by
18 subsection (a) of this section for project grants, the Department of Environmental Quality shall
19 transfer the sum of one million five hundred thousand dollars ($1,500,000) to the North Carolina
20 Community College System Office to provide a grant to Bladen Community College for a water
21 and sewer infrastructure project.
22 SECTION 12.9.(h) Tanglewood Business Park Project. – Of the funds allocated by
23 subsection (a) of this section for project grants, the Department of Environmental Quality shall
24 transfer the sum of two million four hundred thousand dollars ($2,400,000) to the Department of
25 Commerce to provide a grant to Forsyth County for a water and sewer infrastructure project at
26 Tanglewood Business Park.
27 SECTION 12.9.(i) Other Grants. – Of the funds allocated by subsection (a) of this
28 section for project grants, the Department of Environmental Quality shall transfer the sum of
29 twenty million six hundred eighty-one thousand dollars ($20,681,000) to the Office of State
30 Budget and Management to provide a grant to the following entities for the purposes specified:
31 (1) One million eight hundred six thousand dollars ($1,806,000) to the Town of
32 Ellerbe for the repayment of a United States Department of Agriculture loan
33 for a water and sewer infrastructure project.
34 (2) One million dollars ($1,000,000) to the Town of Madison for water and sewer
35 infrastructure projects.
36 (3) Seventeen million eight hundred seventy-five thousand dollars ($17,875,000)
37 to Rockingham County for water and sewer infrastructure improvements.
38 SECTION 12.9.(j) Administrative Costs. – The Department may use three percent
39 (3%) of the funds allocated to the Drinking Water Reserve and the Wastewater Reserve by this
40 section, other than the funds transferred in subsections (g), (h), and (i) of this section, for
41 administrative costs. The Department shall not charge the grant fee authorized by G.S. 159G-24
42 for grants made from funds subject to the set aside of administrative costs authorized by this
43 subsection.
44 SECTION 12.9.(k) Report. – The Department shall include in the report required by
45 G.S. 159G-26 a report on the status of projects funded under this section. This report may be
46 provided in tabular or summary form and need not include information beyond that described in
47 G.S. 159G-26(b)(4).
48
49 PART XIII. LABOR
50
51 OSH ISSUANCE OF CITATIONS

1 SECTION 13.1.(a) G.S. 95-137(b)(3) reads as rewritten:
2 "(3) No citation may be issued under this section after the expiration of six months
3 following the occurrence of any violation.initiation of an inspection by the
4 Director."
5 SECTION 13.1.(b) This section becomes effective October 1, 2022, and applies to
6 inspections initiated on or after that date.
7
8 OSH PENALTY MODIFICATIONS
9 SECTION 13.2.(a) G.S. 95-138 reads as rewritten:
10 "§ 95-138. Civil penalties.
11 (a) The Commissioner, upon recommendation of the Director, or the North Carolina
12 Occupational Safety and Health Review Commission in the case of an appeal, shall have the
13 authority to assess penalties against any employer who violates the requirements of this Article,
14 or any standard, rule, or order adopted under this Article, for amounts set in accordance with
15 subsection (a1) of this section, except as otherwise provided, as follows:
16 (1) A minimum penalty of five thousand dollars ($5,000) to a maximum penalty
17 of seventy thousand dollars ($70,000) may shall be assessed for each willful
18 or repeat violation.
19 (2) A penalty of up to seven thousand dollars ($7,000) shall be assessed for each
20 serious violation, except that a violation.
21 (2a) A penalty of up to fourteen thousand dollars ($14,000) twenty-nine thousand
22 dollars ($29,000) shall be assessed for each serious violation that involves
23 injury to an employee under 18 years of age.
24 (2a)(2b) A penalty of up to seven thousand dollars ($7,000) may be assessed for each
25 violation that is adjudged not to be of a serious nature.
26 (3) A penalty of up to seven thousand dollars ($7,000) may shall be assessed
27 against an employer who fails to correct and abate a violation, within the
28 period allowed for its correction and abatement, which period shall not begin
29 to run until the date of the final Order of the Commission in the case of any
30 appeal proceedings in this Article initiated by the employer in good faith and
31 not solely for the delay of avoidance of penalties. The assessment shall be
32 made to apply to each day during which the failure or violation continues.
33 (4) A penalty of up to seven thousand dollars ($7,000) shall be assessed for
34 violating the posting requirements, as required under the provisions of this
35 Article.
36 (a1) The Commissioner shall adjust minimum and maximum civil penalties in this section
37 in accordance with the requirements set forth in the United States Consumer Price Index for All
38 Urban Consumers published by the United States Department of Labor as necessary to comply
39 with federal law. The Commissioner shall have a period of 60 calendar days from the date a final
40 rule is published in the Federal Register to publish the civil penalties in the North Carolina
41 Register under 13 NCAC 07A .0301 or any related or subsequent regulations setting penalty
42 standards in compliance with Part 1903 of Title 29 of the Code of Federal Regulations, and on
43 its website.
44 (b) The Commissioner shall adopt uniform standards that the Commissioner, the
45 Commission, and the hearing examiner shall apply when determining appropriateness of the
46 penalty. The following factors shall be used in determining whether a penalty is appropriate:
47 (1) Size of the business of the employer being charged.
48 (2) The gravity of the violation.
49 (3) The good faith of the employer.
50 (4) The record of previous violations; provided that for purposes of determining
51 repeat violations, only the record within the previous three years is applicable.

1 (5) Whether the violation involves injury to an employee under 18 years of age.
2 (b1) The report of the hearing examiner and the report, decision, or determination of the
3 Commission on appeal shall specify the standards applied in determining the reduction or
4 affirmation of the penalty assessed by the Commissioner.
5 (c) The clear proceeds of all civil penalties and interest recovered by the Commissioner,
6 together with the costs thereof, shall be remitted to the Civil Penalty and Forfeiture Fund in
7 accordance with G.S. 115C-457.2."
8 SECTION 13.2.(b) This section becomes effective October 1, 2022, and applies to
9 civil penalties assessed on or after that date.
10
11 PART XIV. NATURAL AND CULTURAL RESOURCES
12
13 ROANOKE ISLAND FESTIVAL PARK FUND CODE
14 SECTION 14.1. The Department of Natural and Cultural Resources, in consultation
15 with the Office of State Budget and Management, shall create a separate fund code in Budget
16 Code 14800 for Roanoke Island Festival Park.
17
18 ROANOKE ISLAND FESTIVAL PARK OUTDOOR PAVILION
19 SECTION 14.2. Notwithstanding any provision of G.S. 143-341(4) to the contrary,
20 the Department of Natural and Cultural Resources may enter into a lease agreement with a
21 nonprofit entity for the enhancement and management of the outdoor performance pavilion and
22 seating lawn at Roanoke Island Festival Park. A lease agreement entered into under this section
23 shall be subject to approval by the Council of State.
24
25 NORTH CAROLINA SCIENCE MUSEUMS GRANT PROGRAM ADMINISTRATIVE
26 EXPENSES
27 SECTION 14.3. G.S. 143B-135.227(f) reads as rewritten:
28 "(f) The Department may create one new position to administer the program using no
29 more than fifty thousand dollars ($50,000) of funds appropriated to the North Carolina Science
30 Museums Grant Program in each fiscal year. Of the funds appropriated to the North Carolina
31 Science Museums Grant Program each year, the Department may use no more than the greater
32 of one hundred thousand dollars ($100,000) or four percent (4%) as its operating expenses for
33 the Program. In addition to administering the Grant Program, this position positions created with
34 these funds shall also (i) serve as a liaison liaisons between grant applicants or recipients and the
35 Museum to answer questions and assist with grant applications; (ii) foster collaboration between
36 the Museum and grant recipients with respect to education program development and the loaning
37 of exhibits from the Museum or between grantee institutions; and (iii) undertake other duties in
38 support of the Grant Program at the discretion of the Director of the Museum."
39
40 PART XV. WILDLIFE RESOURCES COMMISSION
41
42 CHRONIC WASTING DISEASE REPORT
43 SECTION 15.1. G.S. 143-254.7 reads as rewritten:
44 "§ 143-254.7. Appropriation and emergency power to combat Chronic Wasting
45 Disease.Disease; report.
46 (a) Emergency Appropriation. – If the Commission determines that an outbreak of
47 Chronic Wasting Disease in the State constitutes a significant threat to deer and other cervid
48 species, the Commission may declare a wildlife emergency. Upon declaration of the wildlife
49 emergency, the Commission shall request needed additional funding for immediate investigation,
50 containment, and eradication of the outbreak from the Contingency and Emergency Fund to the
51 Council of State for approval following the process set forth in G.S. 143C-4-4(c). The approved

1 funds will be allocated by the State Controller to a special fund called the Chronic Wasting
2 Disease Emergency Response Fund (CWD Response Fund). Funds allocated to the CWD
3 Response Fund are appropriated to the Wildlife Resources Commission for the purposes for
4 which the funds are requested and approved. The Commission shall request any federal funds
5 available to combat Chronic Wasting Disease in cervids, and any such funds obtained will be
6 used to offset State funds appropriated under this section to the extent allowed by applicable law.
7 The Commission will inform the Office of State Budget and Management of the amount of State
8 funds offset by federal funds, and the Office of State Budget and Management shall direct the
9 State Controller to transfer these funds from the CWD Response Fund to the Contingency and
10 Emergency Fund upon receipt of the federal funds.
11 (b) Report. – No later than September 15 of each year in which the Commission receives
12 State funds to combat, monitor, or contain an outbreak of Chronic Wasting Disease appropriated
13 either under this section or in any other enactment of the General Assembly, the Director shall
14 submit a report on the activities conducted with the funds during the prior fiscal year to the Joint
15 Legislative Oversight Committee on Agriculture and Natural and Economic Resources and the
16 Fiscal Research Division. The report shall include the following with respect to each Chronic
17 Wasting Disease initiative or activity funded during the previous fiscal year:
18 (1) Identification of the source of the funds used for the initiative or activity.
19 (2) The goals and outcomes for the initiative or activity.
20 (3) A description of the measures used or data collected to evaluate the efficiency
21 and effectiveness of the initiative or activity in reaching its desired goals and
22 outcomes.
23 (4) The performance of each initiative or activity with respect to the identified
24 goals and outcomes."
25
26 ROCKINGHAM COUNTY FOX TRAPPING
27 SECTION 15.2.(a) Section 2 of Chapter 179 of the 1985 Session Laws, as amended
28 by S.L. 2011-136, reads as rewritten:
29 "Sec. 2. Notwithstanding any other provision of law, there is an open season for taking foxes
30 by trapping from November 1 June 1 through February 28 of each year. During this season, all
31 leghold traps set on dry land shall be in accordance with State law."
32 SECTION 15.2.(b) This section shall apply only to Rockingham County.
33 SECTION 15.2.(c) This section is effective when it becomes law.
34
35 HUNTING/FISHING/BOATING CONTRACT LICENSE VENDORS
36 SECTION 15.3.(a) G.S. 113-128 is amended by adding a new subdivision to read:
37 "(2a) Contracted licensing system vendor. – An entity that the Wildlife Resources
38 Commission contracts with to build and maintain an enterprise system to
39 support business functions of the Commission. These functions shall include
40 the processing of vessel transactions the Commission is authorized to conduct
41 by Chapter 75A of the General Statutes and licenses, permits, or applications
42 the Commission is authorized to issue under this Chapter."
43 SECTION 15.3.(b) G.S. 75A-5.2 reads as rewritten:
44 "§ 75A-5.2. Vessel agents.
45 (a) In order to facilitate the convenience of the public, the efficiency of administration,
46 the need to keep statistics and records affecting the conservation of wildlife resources, boating,
47 water safety, and other matters within the jurisdiction of the Commission, and to facilitate vessel
48 transactions, the Commission may conduct vessel transactions through any of the following:
49 (1) Vessel agents.
50 (1a) A contracted licensing system vendor.
51 (2) The Commission's headquarters.

1 (3) Employees of the Commission.
2 (4) Two or more of those sources simultaneously.
3 (b) When there are substantial reasons for differing treatment, the Commission may
4 conduct vessel transactions by one method in one locality and by another method in another
5 locality.
6 (c) As compensation for services rendered to the Commission and to the general public,
7 vessel Vessel agents shall receive the surcharge surcharges listed below. below for vessel
8 transactions made through the agent, and the Commission shall receive the surcharges below for
9 all other vessel transactions. The surcharge shall be added to the fee for each certificate
10 issued.purchased.
11 (1) Renewal of certificate of number – $3.00.
12 (2) Transfer of ownership and certificate of number – $5.00.
13 (3) Issuance of new certificate of number – $5.00.
14 (4) Issuance of duplicate certificate of number – $3.00.
15 (5) Issuance or transfer of certificate of title – $5.00.
16 (c1) In addition to surcharges charged by a vessel agent or the Commission, a contracted
17 licensing system vendor may charge the following transaction fees:
18 (1) Up to three dollars ($3.00) per transaction for purchases made online or by
19 other electronic means.
20 (2) Up to one dollar ($1.00) per transaction for purchases made through a vessel
21 agent or through the Commission.
22 (3) Up to five dollars ($5.00) per transaction for purchases made through the
23 contracted licensing system vendor call center.
24 …
25 (g) If any check or bank account draft of any vessel agent for the issuance of certificates
26 of number shall be is returned by the banking facility upon which the same is drawn for lack of
27 funds, the vessel agent shall be is liable to the Commission or contracted licensing system vendor
28 for a penalty of five percent (5%) of the amount of the check or bank account draft, but in no
29 event shall the penalty be less than five dollars ($5.00) or more than two hundred dollars
30 ($200.00). Vessel agents shall be assessed a penalty of twenty-five percent (25%) of their issuing
31 fee on all remittances to the Commission or to a contracted licensing system vendor after the
32 fifteenth day of the month immediately following the month of sale.
33 …."
34 SECTION 15.3.(c) G.S. 113-264(d1) is repealed.
35 SECTION 15.3.(d) G.S. 113-270.1 reads as rewritten:
36 "§ 113-270.1. License agents.
37 (a) The Wildlife Resources Commission may by rule provide for the appointment of
38 persons as license agents to sell licenses and permits that the Commission is authorized to issue
39 by this Subchapter or by any other provisions of law. To facilitate the convenience of the public,
40 the efficiency of administration, the need to keep statistics and records affecting the conservation
41 of wildlife resources, boating, water safety, and other matters within the jurisdiction of the
42 Wildlife Resources Commission, and the need to issue licenses and permits containing special
43 restrictions, the Wildlife Resources Commission may issue licenses and permits in any particular
44 category through:
45 (1) License agents.
46 (1a) A contracted licensing system vendor.
47 (2) The Wildlife Resources Commission's headquarters.
48 (3) Employees of the Wildlife Resources Commission.
49 (4) Two or more such sources simultaneously.

1 (a1) When there are substantial reasons for differing treatment, the Wildlife Resources
2 Commission may issue a type of license or permit by one method in one locality and by another
3 method in another locality.
4 (b) License agents may charge a fee of two dollars ($2.00) up to four dollars ($4.00) per
5 transaction for licenses or permits issued.licenses, applications, or permits processed by the
6 agent. The Commission may charge a fee of up to four dollars ($4.00) per transaction for licenses,
7 permits, and applications sold online or by other electronic means or directly to the public. This
8 fee is in addition to any transaction fee charged by a contracted licensing system vendor.
9 …
10 (b4) If any check or bank account draft of any license agent for the issuance of licenses or
11 permits shall be is returned by the banking facility upon which the same is drawn for lack of
12 funds, the license agent shall be is liable to the Commission or contracted licensing system vendor
13 for a penalty of five percent (5%) of the amount of the check or bank account draft, but in no
14 event shall the penalty be less than five dollars ($5.00) or more than two hundred dollars
15 ($200.00). License agents shall be assessed a penalty of twenty-five percent (25%) of their
16 issuing fee on all remittances to the Commission or contracted licensing system vendor after the
17 fifteenth day of the month immediately following the month of sale.
18 (b5) A contracted licensing system vendor may charge a fee of:
19 (1) Up to three dollars ($3.00) per transaction for licenses, permits, applications,
20 or merchandise sold online or by other electronic means.
21 (2) Up to one dollar ($1.00) per transaction for licenses, permits, applications, or
22 merchandise sold by a license agent or directly through the Commission.
23 (3) Up to five dollars ($5.00) per transaction for licenses, permits, applications,
24 or merchandise sold through the contracted licensing system vendor call
25 center.
26 (b6) Neither the Commission nor a contracted licensing system vendor shall charge a fee
27 for federal Harvest Information Program (HIP) certification, big game harvest report cards for
28 lifetime license holders, exempt landowners, persons of less than 16 years of age, or for any other
29 license transactions for which there is no charge authorized by applicable law.
30 …."
31 SECTION 15.3.(e) G.S. 113-270.1B(d) is repealed.
32 SECTION 15.3.(f) G.S. 112-275(c1) reads as rewritten:
33 "(c1) Upon receipt of a proper application together with a fee of up to five dollars ($5.00),
34 the Wildlife Resources Commission may issue a new license or permit to replace one that has
35 been lost or destroyed before its expiration. The application must be on a form of the Wildlife
36 Resources Commission setting forth information in sufficient detail to allow ready identification
37 of the lost or destroyed license or permit and ascertainment of the applicant's continued
38 entitlement to it."
39 SECTION 15.3.(g) This section becomes effective July 1, 2023.
40
41 PART XVI. ADMINISTRATIVE OFFICE OF THE COURTS
42
43 RESTRICT USE OF FUNDS PROVIDED TO NORTH CAROLINA LEGAL
44 EDUCATION ASSISTANCE FOUNDATION (NC LEAF)
45 SECTION 16.1. Funds provided as a directed grant to the North Carolina Legal
46 Education Assistance Foundation (NC LEAF) for the 2022-2023 fiscal year shall not be used to
47 provide assistance to attorneys working for Legal Aid of North Carolina, Inc.
48
49 CLARIFY SUPREME COURT DOCUMENT MANAGEMENT
50 SECTION 16.2.(a) G.S. 7A-11 reads as rewritten:
51 "§ 7A-11. Clerk of the Supreme Court; salary; bond; fees; oath.

1 The clerk of the Supreme Court shall be appointed by the Supreme Court to serve at its
2 pleasure. The annual salary of the clerk shall be fixed by the Administrative Officer of the Courts,
3 subject to the approval of the Supreme Court. The clerk may appoint assistants in the number
4 and at the salaries fixed by the Administrative Officer of the Courts. The clerk shall perform such
5 duties as the Supreme Court may assign, and shall be bonded to the State, for faithful performance
6 of duty, in the same manner as the clerk of the superior court, and in such amount as the
7 Administrative Officer of the Courts shall determine. The clerk shall adopt a seal of office, to be
8 approved by the Supreme Court. A fee bill for services rendered by the clerk shall be fixed by
9 rules of the Supreme Court, and all such fees shall be remitted to the State treasury. Charges to
10 litigants for document management and the reproduction of appellate records and briefs shall be
11 fixed by rule of the Supreme Court and remitted to the Appellate Courts Printing and Computer
12 Operations Fund established in G.S. 7A-343.3. The operations of the Clerk of the Supreme Court
13 shall be subject to the oversight of the State Auditor pursuant to Article 5A of Chapter 147 of the
14 General Statutes. Before entering upon the duties of his office, the clerk shall take the oath of
15 office prescribed by law."
16 SECTION 16.2.(b) This section is effective when it becomes law.
17
18 ABOLISH STATE JUDICIAL COUNCIL
19 SECTION 16.3.(a) Article 31A of Chapter 7A of the General Statutes is repealed.
20 SECTION 16.3.(b) G.S. 7A-300(a) reads as rewritten:
21 "(a) The operating expenses of the Judicial Department shall be paid from State funds, out
22 of appropriations for this purpose made by the General Assembly, or from funds provided by
23 local governments pursuant to G.S. 7A-300.1, 153A-212.1, or 160A-289.1. The Administrative
24 Office of the Courts shall prepare budget estimates to cover these expenses, including therein the
25 following items and such other items as are deemed necessary for the proper functioning of the
26 Judicial Department:
27 …
28 (12) Operating expenses of the Judicial Council and the Judicial Standards
29 Commission."
30 SECTION 16.3.(c) G.S. 15A-1475 reads as rewritten:
31 "§ 15A-1475. Reports.
32 The North Carolina Innocence Inquiry Commission shall report annually by February 1 of
33 each year on its activities to the Joint Legislative Oversight Committee on Justice and Public
34 Safety and the State Judicial Council. Safety. The report may contain recommendations of any
35 needed legislative changes related to the activities of the Commission. The report shall
36 recommend the funding needed by the Commission, the district attorneys, and the State Bureau
37 of Investigation in order to meet their responsibilities under S.L. 2006-184. Recommendations
38 concerning the district attorneys or the State Bureau of Investigation shall only be made after
39 consultations with the North Carolina Conference of District Attorneys and the Attorney
40 General."
41 SECTION 16.3.(d) This section is effective when it becomes law.
42
43 CLARIFY TIME-LIMITED POSITIONS
45 "SECTION 16.11. Of the funds appropriated in this act from the State Fiscal Recovery Fund
46 to the Administrative Office of the Courts for temporary court personnel to address a backlog in
47 cases due to the COVID-19 pandemic, up to seven hundred ninety-nine thousand one hundred
48 seventy dollars ($799,170) may be used to support up to 12.25 30 time-limited positions in the
49 2021-2022 fiscal year. Beginning in the 2022-2023 fiscal year, any remaining funds appropriated
50 in this act from the State Fiscal Recovery Fund to the Administrative Office of the Courts for

1 temporary court personnel to address a backlog in cases due to the COVID-19 pandemic may be
2 used to support up to 24.5 time-limited positions until the funds are expended."
4
5 ADD MAGISTRATES TO VARIOUS COUNTIES
6 SECTION 16.5. G.S. 7A-133(c) reads as rewritten:
7 "(c) Each county shall have the numbers of magistrates and additional seats of district
8 court, as set forth in the following table:
9 Magistrates Additional
10 County Min. Seats of Court
11 …
12 Caswell 34
13 Wake 18.523.5 Apex,
14 Wendell,
15 Fuquay-
16 Varina,
17 Wake Forest
18 …
19 Mecklenburg 26.5031.5
20 …
21 Cleveland 78
22 Lincoln 56
23 …."
24
25 ADD ASSISTANT DISTRICT ATTORNEYS TO VARIOUS COUNTIES
26 SECTION 16.6. G.S. 7A-60(a1) reads as rewritten:
27 "(a1) The counties of the State are organized into prosecutorial districts, and each district
28 has the counties and the number of full-time assistant district attorneys set forth in the following
29 table:
30 No. of Full-Time
31 Prosecutorial Asst. District
32 District Counties Attorneys
33 …
34 3 Pitt 1415
35 …
36 8 Edgecombe, Nash, Wilson 2122
37 …
38 10 Wake 4344
39 11 Franklin, Granville, Person 1718
40 Vance, Warren
41 …
42 15 Bladen, Brunswick, Columbus 1516
43 …
44 23 Stokes, Surry 89
45 24 Guilford 3940
46 …
47 29 Hoke, Moore 910
48 …
49 32 Alexander, Iredell 1415
50 …
51 38 Gaston 1819

1 …
2 43 Cherokee, Clay, Graham, 1415
3 Haywood, Jackson, Macon,
4 Swain."
5
6 INCREASE FORMER LAW ENFORCEMENT OFFICER WITNESS PAY
7 SECTION 16.7.(a) G.S. 7A-314 reads as rewritten:
8 "§ 7A-314. Uniform fees for witnesses; experts; limit on number.
9 (a) A Except for a witness that is a former State, county, or municipal law-enforcement
10 officer, a witness under subpoena, bound over, or recognized, other than a salaried State, county,
11 or municipal law-enforcement officer, or an out-of-state witness in a criminal case, whether to
12 testify before the court, Judicial Standards Commission, jury of view, magistrate, clerk, referee,
13 commissioner, appraiser, or arbitrator shall be entitled to receive five dollars ($5.00) per day, or
14 fraction thereof, during his attendance, which, except as to witnesses before the Judicial
15 Standards Commission, must be certified to the clerk of superior court. Compensation of
16 witnesses acting on behalf of the court or prosecutorial offices shall be paid in accordance with
17 the rules established by the Administrative Office of the Courts. Compensation of witnesses
18 provided under G.S. 7A-454 shall be in accordance with rules established by the Office of
19 Indigent Defense Services.
20 (a1) A witness that is a former State, county, or municipal law-enforcement officer that is
21 under subpoena, bound over, or recognized, whether to testify before the court, Judicial Standards
22 Commission, jury of view, magistrate, clerk, referee, commissioner, appraiser, or arbitrator, shall
23 be entitled to receive twenty dollars ($20.00) per hour, or fraction thereof, during the former
24 law-enforcement officer's attendance, which, except as to witnesses before the Judicial Standards
25 Commission, must be certified to the clerk of superior court. Compensation of witnesses acting
26 on behalf of the court or prosecutorial offices shall be paid in accordance with the rules
27 established by the Administrative Office of the Courts. Compensation of witnesses provided
28 under G.S. 7A-454 shall be in accordance with rules established by the Office of Indigent
29 Defense Services.
30 (b) A witness entitled to the a fee set forth in subsection subsections (a) or (a1) of this
31 section, and a law-enforcement officer who qualifies as a witness, shall be entitled to receive
32 reimbursement for travel expenses as follows:
33 …
34 (c) A witness who resides in a state other than North Carolina and who appears for the
35 purpose of testifying in a criminal action and proves his attendance may be compensated at the
36 rate allowed to State officers and employees by subdivisions (1) and (2) of G.S. 138-6(a) for one
37 round-trip from his the witness's place of residence to the place of appearance, and five dollars
38 ($5.00) for each day that he the witness is required to travel and attend as a witness, upon order
39 of the court based upon a finding that the person was a necessary witness. If such a witness is
40 required to appear more than one day, he the witness is also entitled to reimbursement for actual
41 expenses incurred for lodging and meals, not to exceed the maximum currently authorized for
42 State employees. Reimbursements to witnesses acting on behalf of the court or prosecutorial
43 offices shall be paid in accordance with the rules established by the Administrative Office of the
44 Courts. Reimbursements to witnesses provided under G.S. 7A-454 shall be in accordance with
45 rules established by the Office of Indigent Defense Services.
46 …."
47 SECTION 16.7.(b) This section is effective when it becomes law, and applies to
48 motions or applications for costs filed on or after that date.
49
50 DELINEATE LOCATION OF NEW DEPUTY AND ASSISTANT CLERK POSITIONS

1 SECTION 16.8. Of the funds appropriated in this act to the Administrative Office
2 of the Courts to be used to hire deputy and assistant clerk positions, 45 of the positions shall be
3 allocated in accordance with the following chart:
4 COUNTY NUMBER OF DEPUTY
5 OR ASSISTANT CLERKS
6 Alamance 1
7 Beaufort 1
8 Brunswick 1
9 Buncombe 1
10 Burke 1
11 Cabarrus 1
12 Caldwell 1
13 Catawba 1
14 Cleveland 2
15 Craven 1
16 Cumberland 1
17 Davidson 1
18 Duplin 1
19 Forsyth 1
20 Franklin 1
21 Gaston 1
22 Harnett 1
23 Haywood 1
24 Henderson 1
25 Iredell 1
26 Jackson 1
27 Johnston 1
28 Jones 1
29 Lincoln 1
30 Macon 1
31 Nash 1
32 New Hanover 1
33 Onslow 1
34 Orange 1
35 Person 1
36 Pitt 1
37 Randolph 1
38 Robeson 1
39 Rockingham 2
40 Rowan 2
41 Sampson 1
42 Stanly 1
43 Surry 1
44 Union 1
45 Vance 1
46 Wayne 1
47 Wilson 1
48
49 DELINEATE LOCATION OF NEW JUDICIAL SUPPORT STAFF POSITIONS

1 SECTION 16.9.(a) Of the funds appropriated in this act to the Administrative Office
2 of the Courts to be used to hire court coordinator positions, 12 of the positions hired for District
3 Court Districts shall be allocated in accordance with the following chart:
4 DISTRICT COUNTIES POSITIONS
5 2 Beaufort, Hyde, Martin,
6 Tyrrell, Washington 1
7 5 New Hanover, Pender 1
8 7 Edgecombe, Nash, Wilson 1
9 9 Franklin, Granville, Person,
10 Vance, Warren 1
11 11 Harnett, Johnston, Lee 1
12 14 Durham 1
13 16B Robeson 1
14 19D Hoke, Moore 1
15 21 Forsyth 1
16 25 Burke, Caldwell, Catawba 1
17 27B Cleveland, Lincoln 1
18 29A McDowell, Rutherford 1
19 SECTION 16.9.(b) Of the funds appropriated in this act to the Administrative Office
20 of the Courts to be used to hire court coordinator positions, six of the positions hired for Superior
21 Court Districts shall be allocated in accordance with the following chart:
22 DISTRICT COUNTIES POSITIONS
23 3B Carteret, Craven, Pamlico 1
24 5 New Hanover, Pender 1
25 18 Guilford 1
26 19B Randolph 1
27 19D Hoke, Moore 1
28 27B Cleveland, Lincoln 1
29 SECTION 16.9.(c) Of the funds appropriated in this act to the Administrative Office
30 of the Courts to be used to hire one court assistant position, the position shall be located in District
31 Court District 29A and shall serve in Rutherford County.
32 SECTION 16.9.(d) Article 29A of Chapter 7A of the General Statutes reads as
33 rewritten:
34 "Article 29A.
35 "Trial Court Administrators.
36 "§ 7A-355. Trial court administrators.
37 The following districts or sets of districts as defined in G.S. 7A-41.1(a) shall have trial court
38 administrators: Set of districts 10A, 10B, 10C, 10D; District 22 22, District 27B, and District 28,
39 and such other districts or sets of districts as may be designated by the Administrative Office of
40 the Courts.
41 "§ 7A-356. Duties.
42 The duties of each trial court administrator shall be to assist in managing civil dockets, to
43 improve jury utilization and to perform such duties as may be assigned by the senior resident
44 superior court judge of his the district or set of districts as defined in G.S. 7A-41.1(a) or by other
45 judges designated by that senior resident superior court judge."
46
47 PART XVII. INDIGENT DEFENSE SERVICES
48
49 PUBLIC DEFENDER DISTRICTS 2 AND 5
50 SECTION 17.1.(a) G.S. 7A-498.7(a) reads as rewritten:

1 "(a) The following counties of the State are organized into the defender districts listed
2 below, and in each of those defender districts an office of public defender is established:
3 Defender District Counties
4 1 Camden, Chowan, Currituck,
5 Dare, Gates, Pasquotank,
6 Perquimans
7 2 Beaufort, Hyde, Martin,
8 Tyrell, Washington
9 3A Pitt
10 3B Craven, Pamlico, Carteret
11 5 New HanoverHanover, Pender
12 10 Wake
13 12 Cumberland
14 14 Durham
15 15B Orange, Chatham
16 16A Scotland, Hoke
17 16B Robeson
18 18 Guilford
19 21 Forsyth
20 26 Mecklenburg
21 27A Gaston
22 27B Cleveland, Lincoln
23 28 Buncombe
24 29A McDowell, Rutherford
25 29B Henderson, Polk, Transylvania
26 After notice to, and consultation with, the affected district bar, senior resident superior court
27 judge, and chief district court judge, the Commission on Indigent Defense Services may
28 recommend to the General Assembly that a district or regional public defender office be
29 established. A legislative act is required in order to establish a new office or to abolish an existing
30 office."
31 SECTION 17.1.(b) The Office of Indigent Defense Services may use up to the sum
32 of five hundred thousand dollars ($500,000) of funds appropriated to the Office in this act to
33 create five new positions for Public Defender District 5 to be located in Pender County with a
34 primary focus on cases in Pender County. These positions shall include up to three full-time,
35 permanent assistant public defender positions and two full-time, permanent support positions.
36 SECTION 17.1.(c) The Office of Indigent Defense Services may use up to the sum
37 of two hundred sixty thousand dollars ($260,000) of funds appropriated to the Office in this act
38 to create one new full-time, permanent chief public defender for Public Defender District 2 and
39 to convert one legal assistant position to one full-time, permanent Administrative Assistant I
40 position for Public Defender District 2.
41
42 EXTEND SETOFF DEBT COLLECTION ACT NOTICE REQUIREMENTS FOR
43 INDIGENT DEFENSE SERVICES
44 SECTION 17.2.(a) G.S. 105A-8 is amended by adding a new subsection to read:
45 "(a1) Extended Notice. – Notwithstanding any provision of subsection (a) of this section to
46 the contrary, the Office of Indigent Defense Services within the Administrative Office of the
47 Courts shall have 30 days to send the written notice required by subsection (a) of this section."
48 SECTION 17.2.(b) This section is effective when it becomes law and applies to
49 refunds of a debtor received before, on, or after that date.
50
51 PART XVIII. JUSTICE [RESERVED]

1
2 PART XIX. PUBLIC SAFETY
3
4 PART XIX-A. DEPARTMENT OF PUBLIC SAFETY ADMINISTRATION
5
6 TECHNICAL CORRECTIONS FOR SPLIT OF DEPARTMENT OF PUBLIC SAFETY
7 AND NEW DEPARTMENT OF ADULT CORRECTION
8 SECTION 19A.1.(a) G.S. 14-208.40(a) reads as rewritten:
9 "(a) The Division of Community Supervision and Reentry of the Department of Public
10 Safety Adult Correction shall establish a sex offender monitoring program that uses a continuous
11 satellite-based monitoring system and shall create guidelines to govern the program. The program
12 shall be designed to monitor three categories of offenders as follows:
13 …."
14 SECTION 19A.1.(b) G.S. 15-209(b) reads as rewritten:
15 "(b) If a county is unable to provide the space required under subsection (a) of this section
16 for any reason, it may elect to request that the Division of Community Supervision and Reentry
17 of the Department of Adult Correction lease space for the probation office and receive
18 reimbursement from the county for the leased space. If a county fails to reimburse the Division
19 for such leased space, the Secretary of Public Safety Adult Correction may request that the
20 Administrative Office of the Courts transfer the unpaid amount to the Division from the county's
21 court and jail facility fee remittances."
22 SECTION 19A.1.(c) G.S. 15A-150(b) reads as rewritten:
23 "(b) Notification to Other State and Local Agencies. – Unless otherwise instructed by the
24 Administrative Office of the Courts pursuant to an agreement entered into under subsection (e)
25 of this section for the electronic or facsimile transmission of information, the clerk of superior
26 court in each county in North Carolina shall send a certified copy of an order granting an
27 expunction to a person named in subsection (a) of this section to (i) all of the agencies listed in
28 this subsection and (ii) the person granted the expunction. Expunctions granted pursuant to
29 G.S. 15A-146(a4) are excluded from all clerk of superior court notice provisions of this
30 subsection. An agency receiving an order under this subsection shall purge from its records all
31 entries made as a result of the charge or conviction ordered expunged, except as provided in
32 G.S. 15A-151. The list of agencies is as follows:
33 …
34 (4) The Department of Public Safety, Adult Correction, Combined Records
35 Section.
36 …."
37 SECTION 19A.1.(d) G.S. 15A-1340.16(d) reads as rewritten:
38 "(d) Aggravating Factors. – The following are aggravating factors:
39 …
40 (6) The offense was committed against or proximately caused serious injury to a
41 present or former law enforcement officer, employee of the Department of
42 Public Safety, Safety or the Department of Adult Correction, jailer, fireman,
43 emergency medical technician, ambulance attendant, social worker, justice or
44 judge, clerk or assistant or deputy clerk of court, magistrate, prosecutor, juror,
45 or witness against the defendant, while engaged in the performance of that
46 person's official duties or because of the exercise of that person's official
47 duties.
48 …
49 Evidence necessary to prove an element of the offense shall not be used to prove any factor
50 in aggravation, and the same item of evidence shall not be used to prove more than one factor in

1 aggravation. Evidence necessary to establish that an enhanced sentence is required under
2 G.S. 15A-1340.16A may not be used to prove any factor in aggravation.
3 The judge shall not consider as an aggravating factor the fact that the defendant exercised the
4 right to a jury trial.
5 Notwithstanding the provisions of subsection (a1) of this section, the determination that an
6 aggravating factor under G.S. 15A-1340.16(d)(18a) is present in a case shall be made by the
7 court, and not by the jury. That determination shall be made in the sentencing hearing."
8 SECTION 19A.1.(e) G.S. 15A-1343 reads as rewritten:
9 "§ 15A-1343. Conditions of probation.
10 …
11 (b) Regular Conditions. – As regular conditions of probation, a defendant must:
12 …
13 (16) Supply a breath, urine, or blood specimen for analysis of the possible presence
14 of prohibited drugs or alcohol when instructed by the defendant's probation
15 officer for purposes directly related to the probation supervision. If the results
16 of the analysis are positive, the probationer may be required to reimburse the
17 Division of Adult Correction and Juvenile Justice Community Supervision
18 and Reentry of the Department of Public Safety Adult Correction for the
19 actual costs of drug or alcohol screening and testing.
20 …
21 In addition to these regular conditions of probation, a defendant required to serve an active
22 term of imprisonment as a condition of special probation pursuant to G.S. 15A-1344(e) or
23 G.S. 15A-1351(a) shall, as additional regular conditions of probation, obey the rules and
24 regulations of the Division of Prisons of the Department of Adult Correction and, if applicable,
25 the Division of Juvenile Justice of the Department of Public Safety, governing the conduct of
26 inmates while imprisoned and report to a probation officer in the State of North Carolina within
27 72 hours of his discharge from the active term of imprisonment.
28 Regular conditions of probation apply to each defendant placed on supervised probation
29 unless the presiding judge specifically exempts the defendant from one or more of the conditions
30 in open court and in the judgment of the court. It is not necessary for the presiding judge to state
31 each regular condition of probation in open court, but the conditions must be set forth in the
32 judgment of the court.
33 Defendants placed on unsupervised probation are subject to the provisions of this subsection,
34 except that defendants placed on unsupervised probation are not subject to the regular conditions
35 contained in subdivisions (2), (3), (6), (8), (13), (14), (15), (16) and (17) of this subsection.
36 …
37 (b2) Special Conditions of Probation for Sex Offenders and Persons Convicted of Offenses
38 Involving Physical, Mental, or Sexual Abuse of a Minor. – As special conditions of probation, a
39 defendant who has been convicted of an offense which is a reportable conviction as defined in
40 G.S. 14-208.6(4), or which involves the physical, mental, or sexual abuse of a minor, must:
41 …
42 (8) Submit to satellite-based monitoring pursuant to Part 5 of Article 27A of
43 Chapter 14 of the General Statutes, if the defendant is in the category
44 described by G.S. 14-208.40(a)(2), and the Division of Adult Correction and
45 Juvenile Justice Community Supervision and Reentry of the Department of
46 Public Safety, Adult Correction, based on the Division's risk assessment
47 program, recommends that the defendant submit to the highest possible level
48 of supervision and monitoring.
49 …
50 Defendants subject to the provisions of this subsection shall not be placed on unsupervised
51 probation.

1 …."
2 SECTION 19A.1.(f) G.S. 143B-807(d) reads as rewritten:
3 "(d) Each programmatic, residential, and service contract or agreement entered into by the
4 Division shall include a cooperation clause to ensure compliance with the Section's Division's
5 quality assurance requirements and cost-accounting requirements."
6 SECTION 19A.1.(g) G.S. 143B-808 reads as rewritten:
7 "§ 143B-808. Authority to assist private nonprofit foundations.
8 The Division may provide appropriate services or allow employees of the Division to assist
9 any private nonprofit foundation that works directly with the Section's Division's services or
10 programs and whose sole purpose is to support these services and programs. A Division
11 employee shall be allowed to work with a foundation no more than 20 hours in any one month.
12 These services are not subject to Chapter 150B of the General Statutes.
13 The board of directors of each private, nonprofit foundation shall secure and pay for the
14 services of the Department of State Auditor or employ a certified public accountant to conduct
15 an annual audit of the financial accounts of the foundation. The board of directors shall transmit
16 to the Division a copy of the annual financial audit report of the private nonprofit foundation."
17 SECTION 19A.1.(h) G.S. 148-10 reads as rewritten:
18 "§ 148-10. Department of Public Safety Adult Correction to supervise sanitary and health
19 conditions of prisoners.
20 The Department of Public Safety Adult Correction shall have general supervision over the
21 sanitary and health conditions of the central prison, over the prison camps, or other places of
22 confinement of prisoners under the jurisdiction of the Division of Prisons of the Department of
23 Adult Correction."
24 SECTION 19A.1.(i) G.S. 162-39(e) reads as rewritten:
25 "(e) The number of county prisoners incarcerated in the State prison system pursuant to
26 safekeeping orders from the various counties pursuant to subsection (b) of this section or for
27 medical or mental health treatment pursuant to subsection (d) of this section may not exceed 200
28 at any given time unless authorized by the Secretary of Public Safety. Adult Correction. The
29 Secretary may refuse to accept any safekeeper and may return any safekeeper transferred under
30 a safekeeping order when this capacity limit is reached. The Secretary shall not refuse to accept
31 a safekeeper because a county has failed to pay the Department of Adult Correction for services
32 rendered pursuant to this section."
33 SECTION 19A.1.(j) G.S. 15-205 reads as rewritten:
34 "§ 15-205. Duties and powers of the probation officers.
35 A probation officer shall investigate all cases referred to himthe probation officer for
36 investigation by the judges of the courts or by the Secretary of Public Safety. Suchthe Department
37 of Adult Correction. The officer shall keep informed concerning the conduct and condition of
38 each person on probation under histhe probation officer's supervision by visiting, requiring
39 reports, and in other ways, and shall report thereon in writing as often as the court or the Secretary
40 of Public Safetythe Department of Adult Correction may require. SuchThe officer shall use all
41 practicable and suitable methods, not inconsistent with the conditions imposed by the court or
42 the Secretary of Public Safety,the Department of Adult Correction, to aid and encourage persons
43 on probation to bring about improvement in theirthe persons' conduct and condition. SuchThe
44 probation officer shall keep detailed records of histhe probation officer's work; shall make such
45 reports in writing to the Secretary of Public Safetythe Department of Adult Correction as hethe
46 Secretary may require; and shall perform such other duties as the Secretary of Public Safetythe
47 Department of Adult Correction may require. A probation officer shall have, in the execution of
48 histhe probation officer's duties, the powers of arrest and, to the extent necessary for the
49 performance of histhe probation officer's duties, the same right to execute process as is now
50 given, or that may hereafter be given by law, to the sheriffs of this State."

1 SECTION 19A.1.(k) Subsection (d) of this section becomes effective January 1,
2 2023, and applies to offenses committed on or after that date. The remainder of this section
3 becomes effective January 1, 2023.
4
5 FLEXIBILITY TO CERTIFY DEPARTMENT OF ADULT CORRECTION ITEMS IN
6 NEW BUDGET STRUCTURE
7 SECTION 19A.2.(a) Effective July 1, 2022, the Department of Public Safety shall
8 work with the Office of State Budget and Management and the Office of the State Controller to
9 establish the certified budget for the new Department of Adult Correction.
10 SECTION 19A.2.(b) The budget certification required by subsection (a) of this
11 section shall not nullify or curtail the Type 1 transfer process directed by Section 19C.9 of S.L.
12 2021-180.
13 SECTION 19A.2.(c) Upon certification of the budget for the new Department of
14 Adult Correction pursuant to subsection (a) of this section, the Department of Public Safety shall
15 retain budget execution authority of the newly certified budget until January 1, 2023.
16 SECTION 19A.2.(d) Effective January 1, 2023, the Department of Adult Correction
17 shall administer and operate all functions, powers, duties, obligations, and services related to the
18 newly created department, including all programs, services, and administrative functions. This
19 administration and operation shall not nullify or curtail the authority of certain boards,
20 commissions, or other entities housed within the Department of Adult Correction to exercise
21 independence in any manner directed by State law.
22 SECTION 19A.2.(e) This section is effective when it becomes law.
23
24 INCREASE CERTAIN ALLOWABLE EXPENSES TO BE PAID TO VICTIMS OF
25 CRIMES FROM THE CRIME VICTIMS COMPENSATION FUND
26 SECTION 19A.3.(a) G.S. 15B-2 reads as rewritten:
27 "§ 15B-2. Definitions.
28 As used in this Article, the following definitions apply, unless the context requires otherwise:
29 (1) Allowable expense. – Reasonable charges incurred for reasonably needed
30 products, services, and accommodations, including those for medical care,
31 rehabilitation, medically-related property, and other remedial treatment and
32 care. Reasonably needed services include (i) counseling for immediate family
33 members of children under the age of 18 who are victims of rape, sexual
34 assault, or domestic violence and (ii) family counseling and grief counseling
35 for immediate family members of homicide victims. The cumulative total for
36 counseling services provided to immediate family members shall not exceed
37 three thousand dollars ($3,000) per family.
38 Allowable expense includes a total charge not in excess of five ten
39 thousand dollars ($5,000) ($10,000) for expenses related to funeral,
40 cremation, and burial, including transportation of a body, but excluding
41 expenses for flowers, gravestone, and other items not directly related to the
42 funeral service.
43 Allowable expense for medical care, counseling, rehabilitation,
44 medically-related property, and other remedial treatment and care of a victim
45 shall be limited to sixty-six and two-thirds percent (66 2/3%) of the amount
46 usually charged by the provider for the treatment or care. By accepting the
47 compensation paid as allowable expense pursuant to this subdivision, the
48 provider agrees that the compensation is payment in full for the treatment or
49 care and shall not charge or otherwise hold a claimant financially responsible
50 for the cost of services in addition to the amount of allowable expense.
51 …."

1 SECTION 19A.3.(b) G.S. 15B-11(g) reads as rewritten:
2 "(g) Compensation payable to a victim and to all other claimants sustaining economic loss
3 because of injury to, or the death of, that victim may not exceed thirty forty-five thousand dollars
4 ($30,000) ($45,000) in the aggregate in addition to allowable funeral, cremation, and burial
5 expenses."
6 SECTION 19A.3.(c) Subsection (a) of this section is effective when it becomes law
7 and applies to payments for allowable expenses awarded on or after that date. Subsection (b) of
8 this section is effective when it becomes law and applies to compensation paid to a victim on or
9 after that date. The remainder of this section is effective when it becomes law.
10
11 DEPARTMENT OF PUBLIC SAFETY TO WORK WITH OFFICE OF STATE BUDGET
12 AND MANAGEMENT TO CONVERT POSITIONS FOR ADMINISTRATION OF
13 NEW DEPARTMENT OF ADULT CORRECTION
14 SECTION 19A.4.(a) The Department of Public Safety shall work with the Office of
15 State Budget and Management to convert vacant correctional officer positions into a salary
16 reserve fund for the Department of Adult Correction to be used to hire administrative staff to
17 support the Department of Adult Correction. The positions converted shall only be positions that
18 have been vacant for at least one year.
19 SECTION 19A.4.(b) The conversion of positions required by subsection (a) of this
20 section shall not be in excess of 22 full-time equivalent positions and shall not exceed the
21 conversions necessary to yield a sum of two million dollars ($2,000,000).
22 SECTION 19A.4.(c) The Department of Public Safety shall report to the Joint
23 Legislative Oversight Committee on Justice and Public Safety no later than December 1, 2022,
24 regarding all new positions hired to establish the administrative functions within the new
25 Department of Adult Correction.
26 SECTION 19A.4.(d) This section is effective when it becomes law.
27
28 EXPAND QUALIFICATIONS FOR ABC PERMITTING OF RECREATION
29 DISTRICTS
30 SECTION 19A.5.(a) G.S. 18B-1006(j) is amended by adding a new subdivision to
31 read:
32 "(1a) An area that is located in a county that has not approved the issuance of mixed
33 beverages permits; has at least two cities that have approved the sale of malt
34 beverages, wine, and the operation of an ABC store; and contains a facility of
35 at least 90 acres where five or more motorsports-related events are held each
36 year. The Commission shall issue a permit under the authority set forth in this
37 subdivision only to a facility where five or more motorsports-related events
38 are held, or a qualified business contracting with or located at a facility where
39 five or more motorsports-related events are held, and the sale and
40 consumption of alcoholic beverages shall only occur during a
41 motorsports-related event held at the facility."
42 SECTION 19A.5.(b) This section is effective when it becomes law.
43
44 PART XIX-B. LAW ENFORCEMENT
45
46 STATE HIGHWAY PATROL AND STATE BUREAU OF INVESTIGATION SALARY
47 ADJUSTMENTS
48 SECTION 19B.1.(a) Of the five hundred thousand dollars ($500,000) appropriated
49 in this act for certain salary adjustments for law enforcement officers in the State Highway Patrol,
50 the funds shall only be awarded to Sergeants and First Sergeants.

1 SECTION 19B.1.(b) Of the five hundred thousand dollars ($500,000) appropriated
2 in this act for certain salary adjustments for law enforcement officers in the State Bureau of
3 Investigation, the funds shall only be awarded to Assistant Special Agents in Charge, Special
4 Agents in Charge, and Assistant Directors.
5
6 PART XIX-C. ADULT CORRECTION
7
8 MAKE PRISON WARDENS EXEMPT EMPLOYEES
9 SECTION 19C.1.(a) G.S. 126-5 is amended by adding a new subsection to read:
10 "(c17) Except as to the policies, rules, and plans established by the Commission pursuant to
11 G.S. 126-4(1), 126-4(2), 126-4(3), 126-4(4), 126-4(5), 126-4(6), 126-4(7), and 126-14.3, and
12 except as to the provisions of G.S. 126-14.2, 126-34.02(b)(1) and (2), and Articles 6 and 7 of this
13 Chapter, this Chapter does not apply to the warden of a State adult correctional facility.
14 Employees in these positions shall be public servants under G.S. 138A-3(70) and shall file
15 Statements of Economic Interest under G.S. 138A-22. Employees in these positions shall receive
16 the protections of former G.S. 126-5(e) if the employees were hired before the date of its repeal
17 and have the minimum cumulative service to qualify under that subsection."
18 SECTION 19C.1.(b) This section becomes effective July 1, 2022, and applies to
19 prison wardens hired before, on, or after that date.
20
21 REQUIRES PERSONS ON POST-RELEASE SUPERVISION TO RECEIVE CREDIT
22 FOR COMPLIANCE WITH CERTAIN REINTEGRATIVE CONDITIONS
23 SECTION 19C.2.(a) G.S. 15A-1368.2 reads as rewritten:
24 "§ 15A-1368.2. Post-release supervision eligibility and procedure.
25 …
26 (c) A supervisee's period of post-release supervision shall be for a period of 12 months
27 in the case of Class B1 through E felons and nine months in the case of Class F through I felons,
28 unless the offense is an offense for which registration is required pursuant to Article 27A of
29 Chapter 14 of the General Statutes. For offenses subject to the registration requirement of Article
30 27A of Chapter 14 of the General Statutes, the period of post-release supervision is five years.
31 The conditions of post-release supervision are as authorized in
32 G.S. 15A-1368.5.G.S. 15A-1368.4.
33 …
34 (d) A supervisee's period of post-release supervision may shall be reduced while the
35 supervisee is under supervision by earned time awarded by the Division of Adult Correction and
36 Juvenile Justice of the Department of Public Safety, pursuant to rules adopted in accordance with
37 law. This required reduction of a supervisee's period of post-release supervision shall be
38 ineffective in reducing the period of post-release supervision by more than twenty percent (20%)
39 of the original length of the period of post-release supervision. A supervisee is eligible to receive
40 earned time credit toward the period of supervision for compliance with the reintegrative
41 conditions described in G.S. 15A-1368.5.subdivisions (1) through (5) of subsection (d) of
42 G.S. 15A-1368.4.
43 …."
44 SECTION 19C.2.(b) This section becomes effective December 1, 2022, and applies
45 to any person on post-release supervision on or after that date.
46
47 PART XIX-D. JUVENILE JUSTICE
48
49 EXTEND USE OF SECURITY SERVICES AT ROCKINGHAM YOUTH
50 DEVELOPMENT CENTER

1 SECTION 19D.1.(a) Section 4.15(c) of S.L. 2020-3, as amended by Section 2 of
2 S.L. 2020-15 and Section 19D.2 of S.L. 2021-180, reads as rewritten:
3 "SECTION 4.15.(c) This section is effective when it becomes law and expires upon the
4 earlier of August January 1, 2023, 2024, or the date of completion of the Youth Development
5 Center in Rockingham County."
6 SECTION 19D.1.(b) This section is effective when it becomes law.
7
8 JUVENILE JUSTICE HIE NETWORK REPORT
9 SECTION 19D.2. No later than April 1, 2023, the Department of Public Safety shall
10 report to the Joint Legislative Oversight Committee on Justice and Public Safety, the Joint
11 Legislative Oversight Committee on Health and Human Services, and the Fiscal Research
12 Division regarding the use of funds appropriated in this act to the Department of Public Safety,
13 Division of Juvenile Justice and Delinquency Prevention, for the digitization of juvenile health
14 records and the ongoing resources necessary to report digital health records to the Health
15 Information Exchange network.
16
17 PART XIX-E. EMERGENCY MANAGEMENT AND NATIONAL GUARD
18
19 211 SYSTEM COLLABORATION
20 SECTION 19E.1.(a) G.S. 166A-19.14 reads as rewritten:
21 "§ 166A-19.14. Priority consideration of North Carolina-based companies when addressing
22 public health emergencies.emergencies; NC 2-1-1 system.
23 (a) Priority consideration. – During a public health emergency, the Department of Health
24 and Human Services and the North Carolina Division of Emergency Management within the
25 Department of Public Safety shall first consider North Carolina-based companies that can
26 provide mobile response units with capabilities to reach rural areas of the State. Operations that
27 shall be considered include patient testing or sample collections, feeding operations, triage
28 facilities, and other operations where it is necessary to deliver mobile services to individuals.
29 (b) NC 2-1-1 Cooperation. – In response to disaster declarations or declared states of
30 emergency, the Division and all other responding and coordinating State agencies shall first
31 consult with the nonprofit organization or other entity operating the NC 2-1-1 system and
32 consider using the NC 2-1-1 system when planning any new or expanded customer service,
33 awareness, education, or other assistance initiative, campaign, or program involving telephonic
34 or text communications to individuals in the State affected by the disaster declaration or declared
35 state of emergency. Nothing in this subsection shall be construed to mandate any State agency
36 use of the NC 2-1-1 system for these purposes."
37 SECTION 19E.1.(b) This section becomes effective October 1, 2022.
38
39 PART XX. ADMINISTRATION
40
41 COUNCIL FOR WOMEN/COMMITTEE RECIPIENT NAME CORRECTION
42 SECTION 20.1. G.S. 50B-9 reads as rewritten:
43 "§ 50B-9. Domestic Violence Center Fund.
44 …
45 (c) On or before September 1, the North Carolina Council for Women and Youth
46 Involvement shall report on the quarterly distributions of the grants from the Domestic Violence
47 Center Fund to the chairs of the House and Senate chairs of the General Government
48 Appropriations Committee Appropriations Committee on General Government and the Senate
49 Appropriations Committee on General Government and Information Technology and to the
50 Fiscal Research Division. The report shall include the following:
51 (1) Date, amount, and recipients of the fund disbursements.

1 (2) Eligible programs which are ineligible to receive funding during the relative
2 reporting cycle as well as the reason of the ineligibility for that relative
3 reporting cycle."
4
5 COUNCIL FOR WOMEN ANNUAL REPORT REQUIREMENT CHANGE
6 SECTION 20.2. G.S. 143B-394.16 reads as rewritten:
7 "§ 143B-394.16. Powers and duties of the Commission; reports.
8 …
9 (b) Report. – The Commission shall report its findings and recommendations, including
10 any legislative or administrative proposals, to the Joint Legislative Oversight Committee on
11 General Government no later than April July 1 of each year."
12
13 REMOVE COVENANTS FROM DOA PROPERTY SALE TO LUMBEE TRIBAL
14 ADMINISTRATION/REPEAL LUMBEE TRIBE TRUST FUND
15 SECTION 20.4.(a) Subsection (a) of Section 4 of S.L. 2013-186, as amended by
16 Section 3 of S.L. 2019-162, reads as rewritten:
17 "SECTION 4. Sale of Parcel 1. – (a) The Department of Administration shall first offer
18 Parcel 1 to the Lumbee Tribal Administration for purchase, subject to the following restrictive
19 covenants that would run with the land, a violation of any of which would result in the property
20 reverting to State ownership:
21 (1) The land must be made and remain open and available for public use.
22 (2) The land must be made and remain available for use by North Carolina tribes
23 and American Indian urban organizations for free or at cost.
24 (3) The parcel cannot be subdivided.purchase.
25 If any provision of this subsection or its application is held invalid, the invalidity does not affect
26 other provisions or applications of this subsection that can be given effect without the invalid
27 provisions or application, and to this end the provisions of this subsection are severable."
28 SECTION 20.4.(b) G.S. 147-69.2(22) and G.S. 147-69.6A are repealed.
29
30 PART XXI. ADMINISTRATIVE HEARINGS
31
32 OFFICE OF ADMINISTRATIVE HEARINGS STAFFING FLEXIBILITY
33 SECTION 21.1. G.S. 7A-760 reads as rewritten:
34 "§ 7A-760. Number and status of employees; staff assignments; role of State Human
35 Resources Commission.assignments.
36 (a) The number of administrative law judges and employees of the Office of
37 Administrative Hearings shall be established by the General Assembly. For matters related to
38 Office of Administrative Hearings staff, the Chief Administrative Law Judge shall have the same
39 powers as those granted to the head of a principal State department in G.S. 143B-10(c).
40 (a1) The Chief Administrative Law Judge and five employees of the Office of
41 Administrative Hearings as designated by the Chief Administrative Law Judge are exempt from
42 provisions of the North Carolina Human Resources Act as provided by G.S. 126-5(c1)(27). All
43 other employees of the Office of Administrative Hearings are subject to the North Carolina
44 Human Resources Act.
45 …."
46
47 PART XXII. AUDITOR
48
49 PERFORMANCE AUDIT OF VOLUNTEER FIRE DEPARTMENT FUND

1 SECTION 22.1.(a) The State Auditor shall conduct a performance audit of the
2 Volunteer Fire Department Fund in the Department of Insurance. The audit shall include an
3 examination of all of the following:
4 (1) Adherence to the guidelines for awarding grants as specified in (i)
5 G.S. 58-87-1, effective prior to December 1, 2021; (ii) G.S. 58-87-1, as
6 amended in Section 2 of S.L. 2021-178, effective December 1, 2021; and (iii)
7 Section 30.2 of S.L. 2021-180.
8 (2) The disbursement of grant funds pursuant to G.S. 58-87-1, effective prior to
9 December 1, 2021, and G.S. 58-87-1, as amended in Section 2 of S.L.
10 2021-178, effective December 1, 2021, including the name of each grant
11 recipient, the county in which the recipient is located, the actual amount of
12 each grant, the total number of grants awarded to each recipient, and the
13 average amount of the grants awarded.
14 (3) The disbursement of grant funds pursuant to Section 30.2 of S.L. 2021-180,
15 including all of the information required by subdivision (2) of this subsection
16 for each of the following:
17 a. Base allocation grants.
18 b. Supplemental grants.
19 c. Emergency reserve grants.
20 SECTION 22.1.(b) By February 1, 2023, the State Auditor shall submit a report on
21 the performance audit required by subsection (a) of this section to the Joint Legislative Oversight
22 Committee on General Government and to the Fiscal Research Division. The Department of
23 Insurance shall give the State Auditor full access to all data necessary to complete the audit and
24 the report authorized by this section.
25
26 PART XXIII. BUDGET AND MANAGEMENT
27
28 OSBM/REPORT TO OVERSIGHT COMMITTEE ON NEW POSITIONS
29 SECTION 23.1. The Office of State Budget and Management shall report quarterly
30 to the Joint Legislative Oversight Committee on General Government (Committee) and the Fiscal
31 Research Division on the number of new positions established by a State agency under the
32 purview of the Committee and approved by the Director of the Budget. The report shall include
33 all of the following: (i) the justification for each position established, (ii) the position title and
34 duties of each position, (iii) the salary for each position, and (iv) the source of funds used to
35 establish each position.
36
37 CITY OF CONOVER/EXTEND REVERSION DATE
38 SECTION 23.2.(a) Section 3.2(b) of S.L. 2021-3 reads as rewritten:
39 "SECTION 3.2.(b) The funds appropriated in this section shall not revert until June 30,
40 2022.2023."
41 SECTION 23.2.(b) This section becomes effective June 30, 2022.
42
43 PART XXIV. BUDGET AND MANAGEMENT – SPECIAL APPROPRIATIONS
44
45 DARE COUNTY AFFORDABLE HOUSING
46 SECTION 24.1.(a) Section 11.3(b) of S.L. 2022-6 is repealed.
47 SECTION 24.1.(b) Of the funds appropriated in this act from the Housing Reserve,
48 as established in Section 2.2 of this act, to the Office of State Budget and Management, the sum
49 of thirty-five million dollars ($35,000,000) in nonrecurring funds for the 2022-2023 fiscal year
50 shall be used to provide a directed grant to Dare County for the purpose of making a forgivable
51 loan to the qualified private partner selected by the County to construct affordable housing units

1 in accordance with the County's longstanding master development plan to increase workforce
2 housing, including policies and practices contained in the report entitled "Affordable Housing
3 Best Practice" prepared by RTI International in 2016 and presented to the Dare County Board of
4 Commissioners. Dare County and the selected qualified private partner shall enter into a written
5 agreement to implement the provisions of this section. The selected qualified private partner shall
6 not be subject to the provisions of Article 3 or Article 8 of Chapter 143 of the General Statutes.
7 SECTION 24.1.(c) All of the following shall apply to the agreement between Dare
8 County and the selected qualified private partner:
9 (1) The agreement shall authorize the use of loan funds for new construction and
10 the acquisition of land for new construction.
11 (2) The agreement shall be for a term of 25 years. Upon the expiration of the
12 agreement, Dare County and the qualified private partner may, upon mutual
13 consent, agree to renew the agreement for additional five-year terms.
14 (3) As service repayment on the forgivable loan, the qualified private partner shall
15 provide affordable housing at a cost-savings between the usual and market
16 rate for housing of the type developed, which rate shall be determined jointly
17 by Dare County and the qualified private partner, and a lower rate which shall
18 be set by the qualified private partner. The agreement shall account for
19 cost-savings that total the amount of the forgivable loan over the term of the
20 agreement. Dare County shall, on an annual basis, forgive that portion of the
21 loan based on the provision of reduced housing costs by the qualified private
22 partner.
23 (4) If the qualified private partner does not provide housing cost-savings in an
24 amount equal to the amount of the forgivable loan over the term of the
25 agreement, the qualified private partner shall repay to Dare County within 90
26 days of the date the agreement terminates an amount equal to the remaining
27 service repayment obligation. Dare County shall remit any funds repaid under
28 this subdivision to the Office of State Budget and Management for deposit in
29 the General Fund as nontax revenue.
30 (5) Dare County shall perform all administrative functions necessary to
31 implement the agreement.
32
33 OSBM/LOCAL GOVERNMENT PROJECTS
34 SECTION 24.2. Of the funds appropriated in this act from the Local Project Reserve,
35 as established in Section 2.2 of this act, to the Office of State Budget and Management, the sum
36 of thirty-six million two hundred forty-three thousand dollars ($36,243,000) in nonrecurring
37 funds for the 2022-2023 fiscal year shall be used to provide directed grants to the following local
38 governments and public entities for public purposes:
39 (1) a. One million four hundred fifty-six thousand twenty-four dollars
40 ($1,456,024) to Cleveland County.
41 b. One million dollars ($1,000,000) to Cleveland County for the County
42 Fair.
43 (2) Six hundred eighty-eight thousand two hundred forty-five dollars ($688,245)
44 to Lincoln County.
45 (3) Thirty thousand seven hundred thirty-one dollars ($30,731) to the Town of
46 Stanley.
47 (4) Five hundred thousand dollars ($500,000) to Ashe County.
48 (5) Two hundred fifty thousand dollars ($250,000) to the Town of Lansing.
49 (6) Seven hundred seventy-five thousand dollars ($775,000) to Nash County.
50 (7) Three hundred sixty-five thousand dollars ($365,000) to the Town of
51 Nashville.

1 (8) Five hundred thousand dollars ($500,000) to Vance County.
2 (9) Seven hundred fifty thousand dollars ($750,000) to Franklin County.
3 (10) Four hundred fifty thousand dollars ($450,000) to Rockingham County.
4 (11) Fifty thousand dollars ($50,000) to the Town of Milton.
5 (12) Eight hundred sixty thousand dollars ($860,000) to the City of Eden.
6 (13) Five hundred thousand dollars ($500,000) to the City of Reidsville.
7 (14) Two hundred fifty thousand dollars ($250,000) to the Town of Wentworth.
8 (15) One million five hundred thousand dollars ($1,500,000) to Harnett County.
9 (16) Eight hundred thousand dollars ($800,000) to Lee County.
10 (17) Fifty thousand dollars ($50,000) to Johnston County.
11 (18) One hundred fifty thousand dollars ($150,000) to Sampson County.
12 (19) Six hundred thousand dollars ($600,000) to Randolph County.
13 (20) One million dollars ($1,000,000) to Burke County.
14 (21) Seven hundred fifty thousand dollars ($750,000) to McDowell County.
15 (22) One million dollars ($1,000,000) to Henderson County.
16 (23) Five hundred thousand dollars ($500,000) to Transylvania County.
17 (24) Five hundred thousand dollars ($500,000) to Rowan County.
18 (25) Two million four hundred fifty-seven thousand dollars ($2,457,000) to
19 Sampson County.
20 (26) One million five hundred thousand dollars ($1,500,000) to Davidson County.
21 (27) One hundred thousand dollars ($100,000) to the Davidson County Sheriff's
22 Office.
23 (28) Seven hundred thousand dollars ($700,000) to Davie County.
24 (29) Eighty thousand dollars ($80,000) to the Davie County Sheriff's Office.
25 (30) Eight hundred fifty thousand dollars ($850,000) to Union County.
26 (31) One million three hundred thousand dollars ($1,300,000) to Stokes County.
27 (32) Seven hundred thousand dollars ($700,000) to Forsyth County.
28 (33) a. Four hundred thousand dollars ($400,000) to the Town of
29 Kernersville.
30 b. Two hundred fifty thousand dollars ($250,000) to the Town of
31 Kernersville for parks and recreation projects.
32 (34) Five hundred thousand dollars ($500,000) to Onslow County.
33 (35) a. One million two hundred fifty thousand dollars ($1,250,000) to the
34 City of Jacksonville.
35 b. Two hundred fifty thousand dollars ($250,000) to the City of
36 Jacksonville for the Lejeune Memorial Gardens.
37 (36) Three hundred thousand dollars ($300,000) to the Town of Richlands.
38 (37) Two million four hundred thousand dollars ($2,400,000) to Lenoir County.
39 (38) Two hundred fifty thousand dollars ($250,000) to the Town of Maiden.
40 (39) Seven hundred fifty thousand dollars ($750,000) to Alexander County.
41 (40) One hundred fifty thousand dollars ($150,000) to the Town of Stantonsburg.
42 (41) Six hundred thousand dollars ($600,000) to Hyde County.
43 (42) Four hundred thousand dollars ($400,000) to Tyrell County.
44 (43) Nine hundred thousand dollars ($900,000) to Bertie County.
45 (44) One hundred twenty-six thousand dollars ($126,000) to Washington County.
46 (45) a. One million dollars ($1,000,000) to Edgecombe County.
47 b. One million dollars ($1,000,000) to Edgecombe County to assist the
48 County with costs associated with the fire at the QVC facility and with
49 post-fire cleanup at the QVC facility.
50 c. Two hundred fifty thousand dollars ($250,000) to Edgecombe County
51 for the QVC employee support program.

1 (46) Two hundred fifty thousand dollars ($250,000) to the City of Fayetteville for
2 parks and recreation projects.
3 (47) Seven hundred thirty thousand dollars ($730,000) to the Town of Williamston
4 for riverwalk development.
5 (48) Five hundred thousand dollars ($500,000) to the Village of Marvin for Village
6 Parks.
7 (49) Six hundred fifty thousand dollars ($650,000) to the Town of Huntersville for
8 the Huntersville Family Fitness & Aquatics Center.
9 (50) Three hundred thousand dollars ($300,000) to the City of Archdale Police
10 Department for information technology update.
11 (51) Seventy-five thousand dollars ($75,000) to Surry County for the YESurry
12 Entrepreneurial Competition.
13
14 PART XXV. CONTROLLER [RESERVED]
15
16 PART XXVI. ELECTIONS
17
18 SBE/USE OF HAVA FUNDS
19 SECTION 26.1. The State Board of Elections (Board) shall use federal Help
20 America Vote Act (HAVA) funds appropriated in this act for the 2022-2023 fiscal year for the
21 following purposes:
22 (1) The maintenance and update of voter lists in coordination with county boards
23 of election.
24 (2) The retention and preservation of State election records and papers consistent
25 with the requirements for federal elections as prescribed by Title 52 U.S.C. §
26 20701.
27 (3) The funding to continue no more than 10 current, full-time information
28 technology positions, including the Chief Information Technology Officer.
29 (4) A one-time analysis of the State's voter registration data by the Electronic
30 Registration Information Center, Inc. (ERIC), and a subsequent mailing to
31 affected individuals by the State Board of Elections to improve the accuracy
32 of voter registration records.
33
34 SBE/CONTINUED MEMBERSHIP IN ERIC
35 SECTION 26.3. If the State's continued membership in the Electronic Registration
36 Information Center (ERIC) requires the State Board of Elections or a local board of elections to
37 change any of the policies or procedures related to elections in this State, the change in policy or
38 procedure shall not occur unless approved by an act of the General Assembly.
39
40 PART XXVII. GENERAL ASSEMBLY
41
42 EXPAND RECIPIENTS OF STATE AGENCY REPORTS
43 SECTION 27.1. G.S. 120-308 reads as rewritten:
44 "§ 120-308. Reports to Committee.
45 Whenever a department, office, or agency set out in subdivision (a)(1) of G.S. 120-306 is
46 required by law to report to the General Assembly or to any of its permanent committees or
47 subcommittees on matters affecting the services the department or agency provides, the
48 department or agency shall transmit a copy of the report to the cochairs members of the Joint
49 Legislative Oversight Committee on General Government.Government and the Fiscal Research
50 Division."
51

1 PART XXVIII. GOVERNOR [RESERVED]
2
3 PART XXIX. HOUSING FINANCE AGENCY
4
5 WORKFORCE HOUSING LOAN PROGRAM
6 SECTION 29.1.(a) Subsections (c) and (d) of Section 29.4 of S.L. 2021-180, as
7 amended by Section 6.4 of S.L. 2021-189 and Section 11.2 of S.L. 2022-6, are repealed.
8 SECTION 29.1.(b) Of the funds appropriated in this act from the Housing Reserve,
9 as established in Section 2.2 of this act, to the North Carolina Housing Finance Agency, the sum
10 of one hundred seventy million dollars ($170,000,000) in nonrecurring funds for the 2022-2023
11 fiscal year shall be used first to address funding gaps in previously awarded deals for eligible
12 projects under G.S. 122A-5.15 resulting from the COVID-19 pandemic, including any cost
13 increases, as determined by the Agency. Any funds remaining after the funding gaps have been
14 addressed shall be used to make loans for new eligible projects under G.S. 122A-5.15. The cap
15 on the amount of loans that may be made under G.S. 122A-5.15(c) shall not apply to funds used
16 to address funding gaps in previously awarded deals for eligible projects.
17
18 PART XXX. INSURANCE
19
20 VOLUNTEER FIRE DEPARTMENT FUND/ELIMINATE STATUTORY
21 APPROPRIATION
22 SECTION 30.1. G.S. 58-87-1(d) is repealed.
23
24 DELAY PUBLICATION OF ANNUAL WORKERS' COMPENSATION FUND
25 ACTUARIAL STUDY
26 SECTION 30.2. Notwithstanding the provisions of G.S. 58-87-10(f)(4), for the 2022
27 calendar year only, the Department of Insurance shall publish the annual Workers' Compensation
28 Fund actuarial study no later than October 1, 2022.
29
30 VOLUNTEER FIRE DEPARTMENTS/BASE ALLOCATION GRANTS
31 SECTION 30.3.(a) Grants Authorized; Eligibility. – Of the funds appropriated in
32 this act to the Department of Insurance for the 2022-2023 fiscal year, the sum of one million five
33 hundred thousand dollars ($1,500,000) in nonrecurring funds shall be used to provide base
34 allocation grants in the amount of ten thousand dollars ($10,000) to eligible fire departments
35 under G.S. 58-87-1(b) that applied for a base allocation grant pursuant to Section 30.2(b) of S.L.
36 2021-180 but did not receive such a grant. The base allocation grant authorized by this section
37 shall be used for purposes consistent with G.S. 58-87-1(a1)(3). Base allocation grants do not
38 require a match and shall be made as soon as practicable, but not later than August 1, 2022.
39 SECTION 30.3.(b) Insufficient Funds. – If the one million five hundred thousand
40 dollars ($1,500,000) in nonrecurring funds described in subsection (a) of this section are
41 insufficient to provide base allocation grants for all eligible fire departments that qualify under
42 subsection (a) of this section, the balance of funds needed to meet the requirements of subsection
43 (a) of this section shall be drawn from the cash balance in the Volunteer Fire Department Fund,
44 Budget Code 23900, Fund Code 2133, and those funds are hereby appropriated.
45 SECTION 30.3.(c) Report. – Within 60 days after all base allocation grants have
46 been awarded as provided in this section, the Commissioner shall submit a written report to the
47 Senate Appropriations Committee on General Government and Information Technology, the
48 House of Representatives Appropriations Committee on General Government, the Joint
49 Legislative Oversight Committee on General Government, and the Fiscal Research Division and
50 post on the Department's website which details (i) the total number of base allocation grants

1 awarded under this section, by county, and (ii) the name of each eligible fire department, by
2 county, to which a base allocation grant was awarded and the amount of the grant.
3 SECTION 30.3.(d) Reversion of Funds. – Any unexpended and unencumbered
4 funds at the end of the 2022-2023 fiscal year that were appropriated for the purposes authorized
5 by this section shall revert to the fund from which the appropriation was made.
6 SECTION 30.3.(e) Supplemental Grant. – An eligible fire department awarded a
7 base allocation grant as authorized by this section is also eligible for a supplemental grant under
8 Section 30.4 of this act.
9
10 VOLUNTEER SAFETY DEPARTMENTS/UNITS SUPPLEMENTAL GRANTS
11 SECTION 30.4.(a) Supplemental Grants Authorized. – Of the funds appropriated in
12 this act to the Department of Insurance for the 2022-2023 fiscal year, the sum of thirty-six million
13 five hundred seventy-five thousand dollars ($36,575,000) in nonrecurring funds shall be used to
14 provide supplemental grants in the amount of thirty-five thousand dollars ($35,000) each to
15 eligible fire departments under G.S. 58-87-1(b) and eligible rescue and EMS units under
16 G.S. 58-87-5(b). The supplemental grants authorized by this section shall be awarded in addition
17 to and shall not supplant grants awarded pursuant to G.S. 58-87-1 or G.S. 58-87-5.
18 SECTION 30.4.(b) Insufficient Funds. – If the thirty-six million five hundred
19 seventy-five thousand dollars ($36,575,000) in nonrecurring funds described in subsection (a) of
20 this section are insufficient to provide supplemental grants for all eligible fire departments and
21 eligible rescue and EMS units that apply as provided in subsection (c) of this section, the balance
22 of funds needed to meet the requirements of subsection (a) of this section shall be drawn from
23 the cash balance in the Volunteer Fire Department Fund, Budget Code 23900, Fund Code 2133,
24 and those funds are hereby appropriated.
25 SECTION 30.4.(c) Application; Award. – Eligible fire departments and eligible
26 rescue and EMS units may apply to the Commissioner for a supplemental grant to be used for
27 purposes related to the operations and functions of the departments or units; provided, however,
28 that an eligible fire department or eligible rescue or EMS unit that applied pursuant to Section
29 30.2(c) of S.L. 2021-180 shall not be required to apply pursuant to this section but shall be
30 deemed to have applied as required by this section. The Department shall award only one
31 supplemental grant of thirty-five thousand dollars ($35,000) for the 2022-2023 fiscal year to each
32 eligible fire department and each eligible rescue and EMS unit to help mitigate the financial
33 impact of the COVID-19 pandemic and its impact on the department's and unit's ability to
34 conduct fundraising and generate revenue. In no case shall an eligible fire department or eligible
35 rescue or EMS unit be awarded more than one supplemental grant under this section for the
36 2022-2023 fiscal year even if the eligible fire department or eligible rescue or EMS unit qualifies
37 under both G.S. 58-87-1 and G.S. 58-87-5; provided, however, that an eligible fire department
38 awarded a base allocation grant under Section 30.3 of this act is also eligible for a supplemental
39 grant under this section. Supplemental grants do not require a match and shall be made as soon
40 as practicable, but not later than October 1, 2022.
41 SECTION 30.4.(d) Report. – Within 60 days after all supplemental grants have been
42 awarded as provided in this section, the Commissioner shall submit a written report to the Senate
43 Appropriations Committee on General Government and Information Technology, the House of
44 Representatives Appropriations Committee on General Government, the Joint Legislative
45 Oversight Committee on General Government, and the Fiscal Research Division and post on the
46 Department's website which details (i) the total number of supplemental grants awarded under
47 this section, by county, and (ii) the name of each eligible fire department and eligible rescue or
48 EMS unit, by county, to which a supplemental grant was awarded and the amount of the grant.
49 SECTION 30.4.(e) Reversion of Funds. – Any unexpended and unencumbered funds
50 at the end of the 2022-2023 fiscal year that were appropriated for the purposes authorized by this
51 section shall revert to the fund from which the appropriation was made.

1 SECTION 30.4.(f) Transfer of Funds. – Notwithstanding the provisions of
2 G.S. 58-6-25, for the 2022-2023 fiscal year, the Department of Insurance:
3 (1) Shall transfer, on a quarterly basis, from the Insurance Regulatory Fund to
4 Budget Code 13900, a sum of funds sufficient to offset the one-time
5 adjustment in the Department's operating budget made in this act; provided,
6 however, the funds transferred from the Insurance Regulatory Fund to Budget
7 Code 13900 in the 2022-2023 fiscal year shall not exceed the sum of
8 twenty-six million five hundred seventy-five thousand dollars ($26,575,000).
9 (2) Shall not reimburse the General Fund for the appropriation made in this act to
10 the Department for the purpose of providing supplemental grants as
11 authorized by this section.
12 SECTION 30.4.(g) Prior Law Repealed. – Section 30.2(c) of S.L. 2021-180 is
13 repealed.
14
15 PART XXXI. INSURANCE – INDUSTRIAL COMMISSION [RESERVED]
16
17 PART XXXII. LIEUTENANT GOVERNOR [RESERVED]
18
19 PART XXXIII. MILITARY AND VETERANS AFFAIRS [RESERVED]
20
21 PART XXXIV. REVENUE
22
23 DEPARTMENT OF REVENUE SYSTEMS PROJECTS UPDATE REPORT DUE
24 QUARTERLY
25 SECTION 34.1. Section 8.1 of S.L. 2019-246, as amended by Section 34.4 of S.L.
27 "SECTION 8.1.(a) The Department of Revenue shall update its electronic tax systems to
28 store and recognize power of attorney registrations to ensure that notices generated by the
29 Department are simultaneously sent to both the taxpayer and the person designated in the
30 taxpayer's power of attorney registration. By January 31, 2020, the Department shall report to
31 the Joint Legislative Oversight Committee on General Government on its progress in updating
32 its electronic tax systems to store and recognize power of attorney registrations.
33 "SECTION 8.1.(b) By January 1, 2022, July 1, 2022, and monthly quarterly thereafter, the
34 Department of Revenue shall submit a written report on the status of the power of attorney
35 registration project required by subsection (a) of this section to the chairs of the House
36 Appropriations Committee on General Government and the Senate Appropriations Committee
37 on General Government and Information Technology and the Fiscal Research Division. The
38 monthly quarterly report shall also include an update on the status of the Collections Case
39 Management system implementation and the IBM 4100 replacement project currently underway
40 in the Department."
41
42 PART XXXV. SECRETARY OF STATE [RESERVED]
43
44 PART XXXVI. TREASURER [RESERVED]
45
46 PART XXXVII. GENERAL GOVERNMENT [RESERVED]
47
48 PART XXXVIII. INFORMATION TECHNOLOGY
49
50 BROADBAND GRANT CHANGES
51 SECTION 38.1.(a) Section 38.4(a) of S.L. 2021-180 reads as rewritten:

1 "SECTION 38.4.(a) Of the funds appropriated in this act from the State Fiscal Recovery
2 Fund to the Department of Information Technology for broadband infrastructure grants, and in
3 accordance with applicable federal guidelines, the Department of Information Technology shall
4 administer broadband infrastructure grants through the Growing Rural Economies with Access
5 to Technology (G.R.E.A.T.) grant program. Grant applications shall be submitted and grant funds
6 shall be awarded pursuant to G.S. 143B-1373, with the exception of the following:
7 …
8 (11) Additional points shall be awarded to counties providing a portion of a
9 project's matching funds entirely from federal American Rescue Plan Act
10 (P.L. 117-2) funds the county received directly from the federal government.
11 For counties that received an aggregate of eight million dollars ($8,000,000)
12 or more directly from the federal government, the following points shall be
13 added to the application score:
14 County Match Points
15 $200,000, up to $1,000,000 1
16 $1,000,000, up to $2,000,000 12
17 $2,000,000, up to $4,000,000 23
18 $4,000,000, up to $6,000,000 34
19 $6,000,000, up to $8,000,000 45
20 $8,000,000, or greater 56
21 For counties that (i) received less than an aggregate of eight million dollars
22 ($8,000,000) directly from the federal government from the American Rescue
23 Plan Act (P.L. 117-2) and (ii) are providing a portion of a project's matching
24 funds using the entirety of the federal funds the county received, together with
25 any other unrestricted general fund monies, if needed, the following points
26 shall be added to the application score:
27 County Match Points
28 $250,000, $100,000, up to $6,000,000 6
29 $6,000,000, up to $8,000,000 7
30 …."
31 SECTION 38.1.(b) Section 38.4(a)(13) of S.L. 2021-180 reads as rewritten:
32 "(13) The provisions of G.S. 143B-1373(j) are replaced with the following:
33 Grant recipients are required to provide matching funds based upon the
34 application scoring pursuant to this section in the following minimum
35 amounts:
36 Score Matching Requirement
37 12.0 points or less 50%
38 Greater than 12.0 points, but less than 17.5 points 45%
39 17.5 points, up to 22.0 points 40%
40 Greater than 22.0 points 30%
41 Up to fifty percent (50%) of matching funds paid by the grant recipient may
42 be comprised of third-party funding, including funds from other grant
43 programs or federal funds, to the extent applicable rules permit. A grant
44 recipient receiving a portion of matching funds from a county, where the
45 county portion of matching funds is partially comprised of federal American
46 Rescue Plan Act (P.L. 117-2) funding, may have the grant recipient's portion
47 of the matching requirement imposed under this subdivision reduced to a
48 maximum of twenty-five percent (25%). A grant recipient receiving a portion
49 of matching funds from a county, where the county portion of matching funds
50 is entirely comprised of federal American Rescue Plan Act (P.L. 117-2)
51 funding, may have the grant recipient's portion of the matching requirement

1 imposed under this subdivision reduced to a maximum of fifteen percent
2 (15%)."
3 SECTION 38.1.(c) Section 38.4(a) of S.L. 2021-180 reads as rewritten:
4 "SECTION 38.4.(a) Of the funds appropriated in this act from the State Fiscal Recovery
5 Fund to the Department of Information Technology for broadband infrastructure grants, and in
6 accordance with applicable federal guidelines, the Department of Information Technology shall
7 administer broadband infrastructure grants through the Growing Rural Economies with Access
8 to Technology (G.R.E.A.T.) grant program. Grant applications shall be submitted and grant funds
9 shall be awarded pursuant to G.S. 143B-1373, with the exception of the following:
10 …
11 (11a) The Office shall score applications based upon the metrics provided in
12 G.S. 143B-1373(g), as modified by this section. In awarding grants based
13 upon the scoring metrics, the Office shall also award an additional point to
14 projects where a county has a Community Broadband Planning Playbook that
15 meets the guidelines established by the Office.
16 …."
17 SECTION 38.1.(d) G.S. 143B-1373.1, as enacted by Section 38.6 of S.L. 2021-180,
19 "§ 143B-1373.1. Completing Access to Broadband program.
20 …
21 (d) A broadband service provider selected for a project under this section may provide
22 up to thirty percent (30%) of the total estimated project cost. The Office may commit up to
23 thirty-five percent (35%) of the total estimated project cost from monies in the CAB Fund. The
24 county requesting the project shall be responsible for at least thirty-five percent (35%) of the total
25 estimated project cost and shall utilize federal American Rescue Plan Act (P.L. 117-2) funds or
26 nonrestricted general funds for that purpose. In the event CAB Fund monies are insufficient to
27 fund a project, a county may increase its share of the total estimated project cost, or the Office
28 may adjust the scope of the project to meet the level of available funding. No county may receive
29 more than four eight million dollars ($4,000,000) ($8,000,000) in aggregate funding from the
30 CAB Fund in any single fiscal year.
31 …."
32 SECTION 38.1.(e) G.S. 143B-1373.2(a)(8), as enacted by Section 38.7(a) of S.L.
34 "(8) Unserved household. – A household located in this State that does not have
35 access to broadband service from a wireline or wireless service provider. A
36 household that is included in an area where a grant from the Growing Rural
37 Economies with Access to Technology (GREAT) program pursuant to
38 G.S. 143B-1373 a State broadband grant program has been awarded is not
39 eligible for a grant under this section."
40 SECTION 38.1.(f) G.S. 143B-1373(g)(6) reads as rewritten:
41 "(6) Base speed multiplier. – Projects that will provide minimum download and
42 minimum upload speeds shall have the aggregate points given under
43 subdivisions (1) through (5) of this subsection multiplied by a factor at the
44 level indicated in the table below:
45 Minimum Download:
46 Minimum Upload Score Multiplier
47 Up to 100:10 100:20 Mbps. 1.35
48 100:10 Greater than 100:20 Mbps. up to 200:20 Mbps. 1.75
49 200:20 Mbps. or greater.Mbps., up to 100:100 Mbps. 2.00
50 100 100:100 Mbps., symmetrical.up to 400:400 Mbps. 3.00
51 400:400 Mbps. 4.00

1 Greater than 100:100 400:400 Mbps. 4.005.00"
2 SECTION 38.1.(g) For broadband infrastructure projects that were submitted and
3 were not awarded grants under Section 38.4 of S.L. 2021-180, but were otherwise eligible under
4 that program, the Office of Broadband Infrastructure may, at the election of the county, fund the
5 identical project under G.S. 143B-1373.2, as enacted by Section 38.6 of S.L. 2021-180, without
6 utilizing the request for proposals process outlined in that program.
7 SECTION 38.1.(h) Subsections (g) and (h) of this section are effective when they
8 become law. The remainder of this section becomes effective January 1, 2023.
9
10 EXPAND G.R.E.A.T. FOR WIRELESS BROADBAND
11 SECTION 38.2. Article 15 of Chapter 143B of the General Statutes is amended by
13 "§ 143B-1373.3. Wireless broadband grants.
14 (a) As used in this section, the definitions contained in G.S. 143B-1373(a) apply, with
15 the exception of the following:
16 (1) Broadband service. – For the purposes of this section, wireless internet access
17 service with transmission speeds of at least 100 megabits per second (Mbps)
18 download and at least 20 megabits per second upload (100:20), and a latency
19 sufficient to support real-time, interactive applications. The term does not
20 include satellite-based internet access service.
21 (2) Eligible project. – An eligible project is a discrete and specific project located
22 in an unserved economically distressed area seeking to provide broadband
23 service to homes, businesses, and community anchor points not currently
24 served. If a contiguous project area crosses from one eligible county into one
25 or more eligible adjacent counties, for the purposes of this section, the project
26 shall be deemed to be located in the county where the greatest number of
27 unserved households are proposed to be served. End users that are capable of
28 receiving broadband service outside of the project area shall not be counted
29 for purposes of scoring project applications.
30 (3) Infrastructure. – All equipment, machinery, supplies, or other tangible real or
31 personal property used in connection with the provision of broadband service
32 to end users. The term also includes easements, rights-of-way, and buildings
33 or structures owned or leased by the entity that are made available for location
34 or collocation purposes.
35 (4) Infrastructure costs. – Costs directly related to the construction of broadband
36 infrastructure for the extension of broadband service for an eligible project,
37 including installation, acquiring or updating easements, backhaul
38 infrastructure, and testing costs. The term also includes engineering and any
39 other costs associated with the initial procurement of a location or collocation
40 site for the purpose of installing infrastructure on public or private property
41 and costs required to be paid during the construction period of the project to
42 secure leased location or collocation facilities to be used for the delivery of
43 broadband to an end user. The term does not include overhead or
44 administrative costs or annual lease payments for location or collocation sites
45 that are (i) outside of the project area or (ii) within the project area but paid
46 after construction is completed.
47 (5) Unserved area. – A designated geographic area in which eighty percent (80%)
48 or more of homes, businesses, and community anchor points lack access to
49 broadband service. Areas where a private provider has been designated to
50 receive funds through other State- or federally funded programs designed
51 specifically for broadband deployment shall be considered served if such

1 funding is intended to result in construction of broadband in the area within
2 18 months or for the duration of the federal funding program for that area, or
3 if the funding recipient is otherwise in good standing with the funding
4 agency's regulations governing the funding program.
5 (b) The Office shall accept and score applications and award grants for eligible projects
6 under this section in the manner prescribed in G.S. 143B-1373, with the exception of the
7 following:
8 (1) Protests of applications made under this section may be submitted in
9 accordance with the provisions in G.S. 143B-1373(e), except that a provider
10 may protest that a proposed project area does not meet the definition of
11 unserved provided in this section.
12 (2) Cost per household or business. – The Office shall give additional points to
13 projects that minimize the infrastructure cost of the proposed project per
14 household or business, based upon information available to the Office. Points
15 shall be given to projects based upon the estimated cost per household or
16 business as follows:
17 a. For projects proposed in the Piedmont or Coastal Plain Region:
18 Est. Cost per
19 Household/Business Points
20 Up to $1,000 9
21 $1,000, up to $2,000 8
22 $2,000, up to $3,500 7
23 $3,500, up to $5,000 6
24 $5,000, up to $6,000 5
25 $6,000 and over 0
26 b. For projects located in the Mountain Region:
27 Est. Cost per
28 Household/Business Points
29 Up to $1,500 9
30 $1,500, up to $2,500 8
31 $2,500, up to $4,500 7
32 $4,500, up to $6,000 6
33 $6,000, up to $7,000 5
34 $7,000 and over 0
35 (3) Speed to market. – The Office shall give additional points to projects that
36 minimize the time to begin providing broadband service to end users. Points
37 shall be given to projects based upon the estimated speed to market as follows:
38 Service Time to End Users Points
39 Up to six months 9
40 Six months, up to one year 8
41 One year, up to two years 7
42 Two years and over 0
43 (4) Base speed multiplier. – Projects that will provide minimum download and
44 minimum upload speeds shall have the aggregate points given under
45 subdivisions (2) and (3) of this subsection and subdivisions (1) through (4) of
46 G.S. 143B-1373(g) multiplied by a factor at the level indicated in the table
47 below:
48 Minimum Download:
49 Minimum Upload Score Multiplier
50 100:20 Mbps. up to 300:50 Mbps. 1.00
51 300:50 Mbps., or greater 3.00

1 (5) The Office shall give additional points to projects as follows:
2 a. Four points for a project that also provides customers mobile
3 broadband within the same project area.
4 b. Ten points for projects that do not require new tower construction.
5 c. Five points for projects (i) constructing up to four new towers and (ii)
6 that have an estimated cost per household or business under three
7 thousand five hundred dollars ($3,500) in the Piedmont or Coastal
8 Plain Region or under six thousand dollars ($6,000) in the Mountain
9 Region.
10 (c) The Office shall allocate up to five million dollars ($5,000,000) each fiscal year in
11 State funds for grants under this section. The Office shall utilize ungranted funds under this
12 section to award grants under G.S. 143B-1373."
13
14 RAISE COUNTY CAP FOR STATE RECOVERY FUND BROADBAND GRANTS
15 SECTION 38.3.(a) Section 38.4(a)(12) of S.L. 2021-180 reads as rewritten:
16 "(12) The grant limitation amounts in G.S. 143B-1373(i) are changed as follows:
17 A single grant award shall not exceed four eight million dollars ($4,000,000).
18 ($8,000,000). No combination of grant awards involving any single county
19 may exceed eight thirty-two million dollars ($8,000,000) ($32,000,000) in a
20 fiscal year. Any project that is applied for and not funded in an award round
21 under this section shall be eligible for funding under the Completing Access
22 to Broadband program pursuant to G.S. 143B-1373.1."
23 SECTION 38.3.(b) This section becomes effective January 1, 2023, and applies to
24 grant funds awarded on or after that date.
25
26 FUTURE USE OF FEDERAL INFRASTRUCTURE BROADBAND FUNDS
27 SECTION 38.4.(a) Of the funds received by the State from the federal Infrastructure
28 Investment and Jobs Act (P.L. 117-58) intended for broadband, it is the intent of the General
29 Assembly to use those funds for the benefit of broadband infrastructure grants as follows:
30 (1) Fifty percent (50%) of federal Infrastructure Investment and Jobs Act (P.L.
31 117-58) broadband funds to the Department of Information Technology to be
32 used in accordance with Section 38.4 of S.L. 2021-180, as amended.
33 (2) Forty percent (40%) of federal Infrastructure Investment and Jobs Act (P.L.
36 (3) Ten percent (10%) of federal Infrastructure Investment and Jobs Act (P.L.
39 Notwithstanding any provision of Section 38.5 of S.L. 2021-180, as amended,
40 to the contrary, funds utilized under this subdivision shall be used to deploy
41 broadband service in remote areas or areas where terrain or other
42 physiographic features are identified by a county, and the State project cost
43 responsibility shall be up to ninety-five percent (95%).
44 SECTION 38.4.(b) The Department of Information Technology shall incorporate
45 the intent of the General Assembly as described in subsection (a) of this section in any proposal
46 or application for funding under the federal Infrastructure Investment and Jobs Act (P.L. 117-58)
47 for grants in the Broadband Equity, Access, and Deployment Program and the Enabling Middle
48 Mile Broadband Infrastructure Program. Federal funds received under the federal Infrastructure
49 Investment and Jobs Act (P.L. 117-58) for broadband programs shall remain unexpended until
50 appropriated by an act of the General Assembly.
51

1 GLOBAL TRANSPARK BROADBAND GRANT
2 SECTION 38.5.(a) Notwithstanding any provision of law to the contrary, the North
3 Carolina Global TransPark Authority (Authority) is authorized to receive and administer grant
4 funding from the National Telecommunications and Information Administration for the
5 expansion of broadband infrastructure and access in Lenoir County. The Department of
6 Information Technology may provide assistance in administering the grant funds described in
7 this section at the request of the Authority.
8 SECTION 38.5.(b) This section expires June 30, 2027.
9
10 PART XXXIX. SALARIES AND BENEFITS
11
12 ELIGIBLE STATE-FUNDED EMPLOYEES AWARDED LEGISLATIVE SALARY
13 INCREASE/EFFECTIVE JULY 1, 2022
14 SECTION 39.1. Section 39.1(a1) of S.L. 2021-180 reads as rewritten:
15 "SECTION 39.1.(a1) Effective July 1, 2022, except as provided by subsection (b) of this
16 section, a person (i) whose salary is set by this Part, pursuant to the North Carolina Human
17 Resources Act, or as otherwise authorized in this act and (ii) who is employed in a State-funded
18 position on June 30, 2022, is awarded:
19 (1) A legislative salary increase in the amount of two and one-half percent (2.5%)
20 three and one-half percent (3.5%) of annual salary in the 2022-2023 fiscal
21 year.
22 (2) Any salary adjustment otherwise allowed or provided by law."
23
24 LABOR MARKET ADJUSTMENT RESERVE
25 SECTION 39.2.(a) Of the Labor Market Adjustment Salary Reserve funds
26 appropriated in this Act, agencies shall award salary adjustments to identified employees
27 pursuant to the following requirements:
28 (1) Any increase provided to an employee shall not exceed the greater of fifteen
29 thousand dollars ($15,000) or fifteen percent (15%) of their current base
30 salary.
31 (2) Any increase provided to an employee may not result in the employee's salary
32 exceeding the maximum salary of the salary range associated with the
33 position.
34 (3) No more than twenty-five percent (25%) of the agency's permanent employees
35 may receive a salary increase from the funds appropriated for this purpose.
36 (4) Funds may not be awarded to employees in positions with salaries set in law
37 or paid based on an experience-based salary schedule that is eligible to receive
38 funding from the Pay Plan Reserve.
39 (5) Funds must be used to increase salaries paid to employees and shall not be
40 used to supplant other funding sources or for any other purpose.
41 SECTION 39.2.(b) The provisions of subsection (a) of this section do not apply to
42 the State Highway Patrol or the State Bureau of Investigation, and no allocations shall be made
43 to those agencies for labor market adjustments.
44 SECTION 39.2.(c) The Director of the Budget may adjust a State agency's budgeted
45 receipts to provide an equivalent one percent (1%) Labor Market Adjustment Salary Reserve
46 subject to the requirements in subsection (a) of this section, provided that sufficient receipts are
47 available. Agency receipts needed to implement this section are appropriated for the 2022-2023
48 fiscal year.
49 SECTION 39.2.(d) The Office of State Human Resources (OSHR) shall compile a
50 single report detailing how these funds were distributed by each agency. The OSHR shall develop
51 a uniform reporting mechanism for agencies that displays the salary increases made for each

1 position classification, the average increase provided to employees in each position classification,
2 and the market-based justification for the awarded salary increases. Agencies receiving Labor
3 Market Adjustment Salary Reserve appropriations shall report to the OSHR by September 30,
4 2022. By October 31, 2022, the OSHR shall submit the report containing the agency responses
5 to the Fiscal Research Division.
6
7 GOVERNOR AND COUNCIL OF STATE
8 SECTION 39.3.(a) Effective July 1, 2022, G.S. 147-11(a) reads as rewritten:
9 "(a) The salary of the Governor shall be one hundred sixty-two thousand five hundred
10 seventy-seven dollars ($162,577) one hundred sixty-five thousand seven hundred fifty dollars
11 ($165,750) annually, payable monthly."
12 SECTION 39.3.(b) Section 39.3(b1) of S.L. 2021-180 reads as rewritten:
13 "SECTION 39.3.(b1) Effective July 1, 2022, the annual salaries for members of the Council
14 of State, payable monthly, are set as follows:
15 Council of State Annual Salary
16 Lieutenant Governor $143,619$146,421
17 Attorney General 143,619146,421
18 Secretary of State 143,619146,421
19 State Treasurer 143,619146,421
20 State Auditor 143,619146,421
21 Superintendent of Public Instruction 143,619146,421
22 Agriculture Commissioner 143,619146,421
23 Insurance Commissioner 143,619146,421
24 Labor Commissioner 143,619146,421"
25
26 CERTAIN EXECUTIVE BRANCH OFFICIALS
28 "SECTION 39.4.(a1) Effective July 1, 2022, the annual salaries, payable monthly, for the
29 following executive branch officials for the 2022-2023 fiscal year are as follows:
30 Executive Branch Officials Annual Salary
31 Chairman, Alcoholic Beverage
32 Control Commission $128,966$131,483
33 State Controller 179,580183,084
34 Commissioner of Banks 144,745147,569
35 Chair, Board of Review, Division
36 of Employment Security 141,979144,749
37 Members, Board of Review,
38 Division of Employment Security 140,244142,980
39 Chairman, Parole Commission 141,979144,749
40 Full-Time Members of the Parole Commission 131,273133,835
41 Chairman, Utilities Commission 160,942164,083
42 Members of the Utilities Commission 144,745147,569
43 Executive Director, North Carolina
44 Agricultural Finance Authority 125,593128,044"
45
46 JUDICIAL BRANCH
47 SECTION 39.5.(a) Section 39.5(a1) of S.L. 2021-180 reads as rewritten:
48 "SECTION 39.5.(a1) Effective July 1, 2022, the annual salaries, payable monthly, for the
49 following judicial branch officials for the 2022-2023 fiscal year are as follows:
50 Judicial Branch Officials Annual Salary
51 Chief Justice, Supreme Court $168,980$172,278

1 Associate Justice, Supreme Court 164,595167,807
2 Chief Judge, Court of Appeals 161,992165,153
3 Judge, Court of Appeals 157,787160,866
4 Judge, Senior Regular Resident Superior Court 153,530156,525
5 Judge, Superior Court 149,275152,188
6 Chief Judge, District Court 135,659138,306
7 Judge, District Court 131,403133,967
8 Chief Administrative Law Judge 132,529135,115
9 District Attorney 144,355147,142
10 Assistant Administrative Officer of the Courts 139,011141,724
11 Public Defender 144,355147,172
12 Director of Indigent Defense Services 148,781151,684"
13 SECTION 39.5.(b) Section 39.5(b1) of S.L. 2021-180 reads as rewritten:
14 "SECTION 39.5.(b1) The district attorney or public defender of a judicial district, with the
15 approval of the Administrative Officer of the Courts or the Commission on Indigent Defense
16 Services, respectively, shall set the salaries of assistant district attorneys or assistant public
17 defenders, respectively, in that district such that the average salaries of assistant district attorneys
18 or assistant public defenders in that district, for the 2022-2023 fiscal year, do not exceed
19 eighty-six thousand seven hundred seventy-four dollars ($86,774) eighty-eight thousand four
20 hundred sixty-eight dollars ($88,468) and the minimum salary of any assistant district attorney
21 or assistant public defender is at least forty-six thousand five hundred seventy-three dollars
22 ($46,573), forty-seven thousand four hundred eighty-two dollars ($47,482), effective July 1,
23 2022."
24
25 CLERKS OF SUPERIOR COURT
26 SECTION 39.6.(a) Effective July 1, 2022, G.S. 7A-101(a) reads as rewritten:
27 "(a) The clerk of superior court is a full-time employee of the State and shall receive an
28 annual salary, payable in equal monthly installments, based on the number of State-funded
29 assistant and deputy clerks of court as determined by the Administrative Office of Court's
30 workload formula, according to the following schedule:
31 Assistants and Deputies Annual Salary
32 0-19 $102,305$104,300
33 20-29 110,316113,074115,280
34 30-49 120,822123,842126,259
35 50-99 131,328134,611137,238
36 100 and above 133,955137,304139,983
37 If the number of State-funded assistant and deputy clerks of court as determined by the
38 Administrative Office of Court's workload formula changes, the salary of the clerk shall be
39 changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate
40 for that new number, except that the salary of an incumbent clerk shall not be decreased by any
41 change in that number during the clerk's continuance in office."
42 SECTION 39.6.(b) If Senate Bill 768, 2021 Regular Session, becomes law, then the
43 amendments made to G.S. 7A-101(a) by Section 54.5(a) of that act are repealed.
44
45 ASSISTANT AND DEPUTY CLERKS OF SUPERIOR COURT
46 SECTION 39.7. Effective July 1, 2022, G.S. 7A-102(c1) reads as rewritten:
47 "(c1) A full-time assistant clerk or a full-time deputy clerk, and up to one full-time deputy
48 clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the
49 following minimum and maximum rates:
50
51 Assistant Clerks and Head Bookkeeper Annual Salary

1 Minimum $36,541$37,254
2 Maximum 67,51168,828
3
4 Deputy Clerks Annual Salary
5 Minimum $32,780$33,419
6 Maximum 53,021.54,056."
7
8 MAGISTRATES
9 SECTION 39.8. Effective July 1, 2022, G.S. 7A-171.1(a)(1) reads as rewritten:
10 "(a) The Administrative Officer of the Courts, after consultation with the chief district
11 judge and pursuant to the following provisions, shall set an annual salary for each magistrate:
12 (1) A full-time magistrate shall be paid the annual salary indicated in the table set
13 out in this subdivision. A full-time magistrate is a magistrate who is assigned
14 to work an average of not less than 40 hours a week during the term of office.
15 The Administrative Officer of the Courts shall designate whether a magistrate
16 is full-time. Initial appointment shall be at the entry rate. A magistrate's salary
17 shall increase to the next step every two years on the anniversary of the date
18 the magistrate was originally appointed for increases to Steps 1 through 3, and
19 every four years on the anniversary of the date the magistrate was originally
20 appointed for increases to Steps 4 through 6:
21 Table of Salaries of Full-Time Magistrates
22 Step Level Annual Salary
23 Entry Rate $42,630$43,462
24 Step 1 $45,777$46,670
25 Step 2 $49,171$50,131
26 Step 3 $52,764$53,795
27 Step 4 $57,072$58,186
28 Step 5 $62,259$63,473
29 Step 6 $68,072.$69,401."
30
31 LEGISLATIVE EMPLOYEES
33 "SECTION 39.9.(a1) Effective July 1, 2022, the annual salaries of the Legislative Services
34 Officer and of nonelected employees of the General Assembly in effect on June 30, 2022, shall
35 be legislatively increased by two and one-half percent (2.5%).three and one-half percent (3.5%)."
36
37 GENERAL ASSEMBLY PRINCIPAL CLERKS
38 SECTION 39.10. Effective July 1, 2022, G.S. 120-37(c) reads as rewritten:
39 "(c) The principal clerks shall be full-time officers. Each principal clerk shall be entitled
40 to other benefits available to permanent legislative employees and shall be paid an annual salary
41 of ($119,650) one hundred twenty-two thousand six hundred forty-two dollars ($122,642), one
42 hundred twenty-five thousand thirty-four dollars ($125,034), payable monthly. Each principal
43 clerk shall also receive such additional compensation as approved by the Speaker of the House
44 of Representatives or the President Pro Tempore of the Senate, respectively, for additional
45 employment duties beyond those provided by the rules of their House. The Legislative Services
46 Commission shall review the salary of the principal clerks prior to submission of the proposed
47 operating budget of the General Assembly to the Governor and shall make appropriate
48 recommendations for changes in those salaries. Any changes enacted by the General Assembly
49 shall be by amendment to this paragraph."
50
51 SERGEANTS-AT-ARMS/READING CLERKS

1 SECTION 39.11. Effective July 1, 2022, G.S. 120-37(b) reads as rewritten:
2 "(b) The sergeant at arms and the reading clerk in each house shall be paid a salary of four
3 hundred eighty-three dollars ($483.00) four hundred ninety-three dollars ($493.00) per week plus
4 subsistence at the same daily rate provided for members of the General Assembly, plus mileage
5 at the rate provided for members of the General Assembly for one round trip only from their
6 homes to Raleigh and return. The sergeants at arms shall serve during sessions of the General
7 Assembly and at such time prior to the convening of, and subsequent to adjournment or recess
8 of, sessions as may be authorized by the Legislative Services Commission. The reading clerks
9 shall serve during sessions only."
10
11 COMMUNITY COLLEGES
13 "SECTION 39.12.(a) Community college personnel shall receive the following legislative
14 salary increases:
15 …
16 (2) Effective July 1, 2022, the State Board of Community Colleges shall provide
17 community college faculty and non-faculty personnel with an
18 across-the-board salary increase in the amount of two and one-half percent
19 (2.5%).three and one-half percent (3.5%).
20 …
21 "SECTION 39.12.(b1) The minimum salaries for nine-month, full-time curriculum
22 community college faculty for the 2022-2023 fiscal year are as follows:
23 Minimum Salary
24 Education Level 2022-2023
25 Vocational Diploma/Certificate or Less $39,484$40,254
26 Associate Degree or Equivalent 40,03240,814
27 Bachelor's Degree 42,41543,242
28 Master's Degree or Education Specialist 44,52845,397
29 Doctoral Degree 47,57448,503
30 …."
31
32 THE UNIVERSITY OF NORTH CAROLINA
33 SECTION 39.13. Section 39.13(2) of S.L. 2021-180 reads as rewritten:
34 "(2) Effective July 1, 2022, the Board of Governors of The University of North
35 Carolina shall provide SHRA employees, EHRA employees, and teachers
36 employed by the North Carolina School of Science and Mathematics with an
37 across-the-board salary increase in the amount of two and one-half percent
38 (2.5%).three and one-half percent (3.5%)."
39
40 CORRECTIONAL OFFICER SALARY SCHEDULE
41 SECTION 39.14. Section 39.14(b) of S.L. 2021-180 is rewritten to read:
42 "SECTION 39.14.(b) The following annual salary schedule applies under subsection (a) of
43 this section for the 2021-2023 fiscal biennium, effective for each year on July 1, 2021, and July
44 1, 2022, respectively:
45
46 FY 2021-22 FY 2022-23
47 Experience COI COII COIII COI COII COIII
48 0 $33,130 $34,220 $36,598 $34,621 $35,760 $38,245
49 1 $35,449 $36,615 $39,160 $37,044 $38,263 $40,922
50 2 $37,576 $38,812 $41,510 $39,267 $40,599 $43,378
51 3 $39,455 $40,753 $43,586 $41,230 $42,587 $45,547

1 4 $41,033 $42,383 $45,329 $42,879 $44,290 $47,369
2 5 $42,264 $43,654 $46,689 $44,166 $45,618 $48,790
3 6+ $43,109 $44,527 $47,623 $45,049 $46,531 $49,766"
4
5 STATE LAW ENFORCEMENT OFFICER SALARY SCHEDULE
6 SECTION 39.15. Section 39.15(b) of S.L. 2021-180 reads as rewritten:
7 "SECTION 39.15.(b) The following annual salary schedule applies under subsection (a) of
8 this section for the 2021-2023 fiscal biennium, effective July 1, 2021, and July 1, 2022, for each
9 respective fiscal year:
10
11 Years of Experience FY 2021-22 FY 2022-23
12 0 47,384 48,56949,516
13 1 50,464 51,72652,735
14 2 53,744 55,08856,163
15 3 57,237 58,66959,814
16 4 60,957 62,48263,702
17 5 64,919 66,54367,843
18 6+ 69,139 70,86872,253"
19
20 PROBATION AND PAROLE OFFICER SALARY SCHEDULE
21 SECTION 39.16. Section 39.15A(b) reads as rewritten:
22 "SECTION 39.15A.(b) The following annual salary schedule applies under subsection (a)
23 of this section for the 2021-2023 fiscal biennium, effective July 1, 2021, and July 1, 2022, for
24 each respective fiscal year:
25
26 Years of Experience FY 2021-22 FY 2022-23
27 0 40,000 41,00041,800
28 1 42,600 43,66544,517
29 2 45,369 46,50347,411
30 3 48,318 49,52650,493
31 4 51,549 52,74553,775
32 5 54,804 56,51357,270
33 6+ 58,366 59,82460,993"
34
35 STATE AGENCY TEACHERS
36 SECTION 39.17. Employees of schools operated by the Department of Health and
37 Human Services, the Department of Public Safety, and the State Board of Education who are
38 paid on the Teacher Salary Schedule shall be paid as authorized under this act.
39
40 MITIGATE BONUS LEAVE
41 SECTION 39.18. During the 2022-2023 fiscal year, State agencies, departments,
42 institutions, the North Carolina Community College System, and The University of North
43 Carolina may offer State employees the opportunity to use or to cash in special bonus leave
44 benefits that have accrued pursuant to Section 28.3A of S.L. 2002-126, Section 30.12B(a) of S.L.
45 2003-284, Section 29.14A of S.L. 2005-276, and Section 35.10A of S.L. 2014-100, but only if
46 all of the following requirements are met:
47 (1) Employee participation in the program must be voluntary.
48 (2) Special leave that is liquidated for cash payment to an employee must be
49 valued at the amount based on the employee's current annual salary rate.

1 (3) By September 1, 2023, a report on the position characteristics of employees
2 participating in the program shall be submitted to the respective agency head
3 or employing agency and to the Fiscal Research Division.
4
5 SALARY-RELATED CONTRIBUTIONS ADJUSTMENT
6 SECTION 39.19. Section 39.22(c) of S.L. 2021-180 reads as rewritten:
7 "SECTION 39.22.(c) Effective July 1, 2022, the State's employer contribution rates
8 budgeted for retirement and related benefits as a percentage of covered salaries for the 2022-2023
9 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the
10 University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated
11 Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth
12 below:
13 Teachers State ORPs CJRS LRS
14 and State LEOs
15 Employees
16 Retirement 17.07%17.38%17.07%17.38% 6.84% 39.29%39.95% 24.27%24.91%
17 Disability 0.10% 0.10% 0.10% 0.00% 0.00%
18 Death 0.13% 0.13% 0.00% 0.00% 0.00%
19 Retiree Health 6.89% 6.89% 6.89% 6.89% 6.89%
20 NC 401(k) 0.00% 5.00% 0.00% 0.00% 0.00%
21
22 Total Contribution
23 Rate 24.19%24.50%29.19%29.50%13.83% 46.18%46.84% 31.16%31.80%
24 The following apply in this subsection:
25 (1) The rate for teachers and State employees and State law enforcement officers
26 includes one one-hundredth hundredth percent (0.01%) for the Qualified
27 Excess Benefit Arrangement.
28 (2) The rate for death benefits for teachers and State employees and State law
29 enforcement officers includes two hundredths percent (0.02%) for the death
30 benefits awarded by the Industrial Commission under Article 12A of Chapter
31 143 of the General Statutes."
32
33 INCREASED ONE-TIME COST-OF-LIVING SUPPLEMENT FOR RETIREES OF THE
34 TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE
35 CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE
36 RETIREMENT SYSTEM
37 SECTION 39.20.(a) G.S. 135-5(yyy), as enacted by Section 39.23(a) of S.L.
39 "(yyy) After September 1, 2022, but on or before October 31, 2022, a one-time cost-of-living
40 supplement payment shall be made to or on account of beneficiaries who are living as of
41 September 1, 2022, and whose retirement commenced on or before September 1, 2022. The
42 payment shall be three percent (3%) four percent (4%) of the beneficiary's annual retirement
43 allowance payable as of September 1, 2022, and shall not be prorated for date of retirement
44 commencement. If the beneficiary dies before the payment is made, then the payment shall be
45 payable to the member's legal representative. No beneficiary shall be deemed to have acquired a
46 vested right to any future supplemental payments."
47 SECTION 39.20.(b) G.S. 135-65(jj), as enacted by Section 39.23(b) of S.L.
49 "(jj) After September 1, 2022, but on or before October 31, 2022, a one-time cost-of-living
50 supplement payment shall be made to or on account of beneficiaries who are living as of
51 September 1, 2022, and whose retirement commenced on or before September 1, 2022. The

1 payment shall be three percent (3%) four percent (4%) of the beneficiary's annual retirement
2 allowance payable as of September 1, 2022, and shall not be prorated for date of retirement
3 commencement. If the beneficiary dies before the payment is made, then the payment shall be
4 payable to the member's legal representative. No beneficiary shall be deemed to have acquired a
5 vested right to any future supplemental payments."
6 SECTION 39.20.(c) G.S. 120-4.22A(dd), as enacted by Section 39.23(c) of S.L.
8 "(dd) In accordance with subsection (a) of this section, after September 1, 2022, but on or
9 before October 31, 2022, a one-time cost-of-living supplement payment shall be made to or on
10 account of beneficiaries who are living as of September 1, 2022, and whose retirement
11 commenced on or before September 1, 2022. The payment shall be three percent (3%) four
12 percent (4%) of the beneficiary's annual retirement allowance payable as of September 1, 2022,
13 and shall not be prorated for date of retirement commencement. If the beneficiary dies before the
14 payment is made, then the payment shall be payable to the member's legal representative. No
15 beneficiary shall be deemed to have acquired a vested right to any future supplemental
16 payments."
17
18 TEMPORARY ARRANGEMENT TO INCREASE FUNDING FOR PUBLIC SAFETY
19 EMPLOYEES' LINE OF DUTY DEATH BENEFITS
20 SECTION 39.21. It is the intent of the General Assembly to make additional funding
21 available to the Department of State Treasurer (DST) for the 2022-2023 fiscal year to ensure the
22 timely payment of line of duty death benefits awarded by the Industrial Commission under
23 Article 12A of Chapter 143 of the General Statutes. Accordingly, for the 2022-2023 fiscal year
24 only, and consistent with Section 39.23(c)(2) of S.L. 2021-180, as amended by Section 39.19 of
25 this act, the DST shall deposit two hundredths percent (0.02%) of the State's employer
26 contribution rate budgeted for death benefits for teachers and State employees and State law
27 enforcement officers into a separate fund from the North Carolina Teachers' and State Employees'
28 Benefit Trust established under G.S. 135-7(g). The DST shall not use any of the funds deposited
29 into this separate fund for any purpose other than to pay for line of duty death benefits awarded
30 by the Industrial Commission under Article 12A of Chapter 143 of the General Statutes, subject
31 to all of the following conditions:
32 (1) All other State funds appropriated to the DST for the 2022-2023 fiscal year
33 for the payment of line of duty death benefits awarded by the Industrial
34 Commission have already been fully expended.
35 (2) All federal funds received by the State that are available and eligible to be
36 used for the payment of line of duty death benefits awarded by the Industrial
37 Commission have already been allocated for this purpose and fully expended.
38 (3) Any funds deposited by the DST into a separate fund for the payment of line
39 of duty death benefits awarded by the Industrial Commission pursuant to this
40 section that remain unspent as of June 30, 2023, shall be transferred to the
41 North Carolina Teachers' and State Employees' Benefit Trust established
42 under G.S. 135-7(g) as an additional employer contribution.
43
44 PART XL. CAPITAL
45
46 CAPITAL IMPROVEMENT AND REPAIRS AND RENOVATIONS CHANGES
47 SECTION 40.1.(a) Section 40.1(a) of S.L. 2021-180 reads as rewritten:
48 "SECTION 40.1.(a) The following agency capital improvement projects have been assigned
49 a project code for reference to allocations in this Part, past allocations, and for intended project
50 support by the General Assembly for future fiscal years:
51 Agency Capital Improvement Project Project Code

1 Administrative Office of the Courts–
2 Supreme Court & Court of Appeals-Lexan Windows AOC21-1
3
4 Department of Agriculture and Consumer Services
5 Eaddy Building–Addition & Renovation DACS21-1
6 Tidewater Research Station–Swine Unit Replacements DACS21-2
7 NCFS–County Offices DACS21-3
8 NCFS–Region 1 Headquarters DACS21-4
9 Mountain Island State Forest—Improvements DACS21-5
10 Commissioner Troxler Building–New Chiller DACS21-6
11
12 Department of Health and Human Services
13 New Broughton Hospital–
14 New Maintenance Facility DHHS21-1
15
16 Department of Environmental Quality
17 Reedy Creek Laboratory DEQ21-1
18 Water Resources Development Projects DEQ-WRD21
19
20 Department of Natural and Cultural Resources
21 NC Museum of Art–Light Control DNCR21-1
22 NC Museum of Art–Amphitheater Restoration DNCR21-2
23 NC Museum of Natural History–Dueling Dinosaurs Lab DNCR21-3
24 Fort Fisher Historic Site–New Visitor Center DNCR21-4
25 Fort Fisher Aquarium–Aquarium Expansion DNCR21-5
26 NC Zoo–Asia/Australia Exhibits DNCR21-6
27 NC Zoo–Parking/Trams DNCR21-7
28 NC Transportation Museum–Powerhouse Renovation DNCR21-8
29 Thomas Day House DNCR21-9
30 Graveyard of the Atlantic DNCR21-10
31 Pisgah View State Park DNCR21-12
32 NC Museum of History–Expansion DNCR21-13
33 NC Transportation Museum–Train Shed Renovation DNCR21-14
34 NC Museum of Art–Science Laboratory & Education Center DNCR21-15
35 NC Museum of Art–The Porch Venue & Park Entrance DNCR21-16
36 NC Museum of Art–Community Arts & Education Center DNCR21-17
37 NC Museum of History–NC Sports Hall of Fame DNCR22-1
38
39 Department of Administration
40 DHHS/Dix Campus Relocation DOA21-1
41 Dix Campus Relocation–Utilities & Mail Service Warehouse DOA21-2
42 State Gov't. Complex Chiller Plant DOA21-3
43 DHHS/Utility Infrastructure Support DOA21-4
44 State Government Executive Headquarters DOA22-1
45 Old Revenue Building Renovation DOA22-2
46 Department of Instruction Building Renovation DOA22-3
47 Bath Building Demolition DOA22-4
48
49 Department of Insurance
50 Office of State Fire Marshal–
51 Land Development & Training Center DOI21-1

1
2 Department of Public Instruction
3 Center for the Advancement of Teaching DPI21-1
4
6 Richmond Regional JDC–Raise the Age Renovations DPS21-1
7 Samarcand–Live Fire Training Building DPS21-2
8 Samarcand–Driving Track DPS21-3
9 Samarcand–Parking Lot DPS21-4
10 East Montgomery–Safer Schools Training Academy DPS21-5
11 State Highway Patrol–
12 Viper Building DPS21-6
13 Garner Road Armory DPS21-7
14 State Bureau of Investigation–
15 Headquarters & Building 12 Renovation DPS21-9
16 National Guard–
17 Federal Match Funding Pool NG21-1
18 Edgecombe County Readiness Center NG21-2
19 Burke County Readiness Center NG21-3
20 Guilford Regional Readiness Center NG21-4
21
22 General Assembly
23 Renovations/Elevator Repair NCGA21-1
24 Downtown Government Complex/Master Plan NCGA21-2
25 UNC System Office/Downtown Gov't Complex RelocationEducation Campus Project
26 NCGA21-3
27 Old State Capitol NCGA21-4
28 State Auditor Relocation NCGA22-1
29
30 The University of North Carolina
31 North Carolina State University–
32 Apiculture Facility UNC/NCS21-1
33 E-Sports Facility UNC/NCS21-2
34 E-Sports Truck UNC/NCS21-3
35 S.T.E.M. Building UNC/NCS20-1
36 University of North Carolina at Chapel Hill–
37 Business School UNC/CH20-1
38 Nursing School Renovation UNC/CH20-2
39 School of Law UNC/CH22-1
40 Elizabeth City State University–
41 New Residence Hall UNC/ECS21-1
42 Sky Bridge UNC/ECS21-2
43 New Dining Facility UNC/ECS21-3
44 Flight School UNC/ECS21-4
45 Appalachian State University–
46 Peacock Hall/Business UNC/ASU21-1
47 Innovation Campus UNC/ASU21-2
48 Hickory Campus UNC/ASU22-1
49 North Carolina School of Science and Math-Morganton–
50 Repair & Renovation and Wellness Center UNC/SSM21-1
51 North Carolina Central University–

1 Lab Equipment UNC/NCC21-1
2 East Carolina University–
3 Brody School of Medicine UNC/ECU21-1
4 University of North Carolina at Pembroke–
5 Health Sciences Center UNC/PEM21-1
6 Fayetteville State University–
7 Dormitories UNC/FSU21-1
8 College of Education UNC/FSU21-2
9 Parking Deck UNC/FSU21-3
10 Western Carolina University–
11 Moore Building/Upper Campus Infrastructure UNC/WCU21-1
12 Winston-Salem State University–
13 K.R. Williams Auditorium UNC/WSS21-1
14 UNC Board of Governors–
15 UNC Lease Funds UNC/BOG21-1
16
17 Repairs and Renovations-The University of North Carolina UNC/R&R21
18 Repairs and Renovations-State Agencies (non-UNC) R&R21
19 Community College Capital Allocations CC21
20 UNC- Engineering North Carolina's Future UNC/ENG21
21 Connect NC Bond Funds CNC21
22 SCIF-Related Personnel PERS21
23 OSBM Flexibility Funds FLEX21
24 State Construction Personnel SCO22
25 Downtown Government Complex Agency Relocation REL22"
26 SECTION 40.1.(b) Section 40.1(b) of S.L. 2021-180, as amended by Section 9.1 of
28 "SECTION 40.1.(b) This subsection authorizes the following capital projects and allocates
29 funding in the 2021-2023 fiscal biennium based upon projected cash flow needs for the
30 authorized projects. The authorizations provided in this subsection represent the maximum
31 amount of funding from the State Capital and Infrastructure Fund that may be expended on each
32 project. An additional action by the General Assembly is required to increase the maximum
33 authorization for any of the projects listed.
34 There is allocated from the State Capital and Infrastructure Fund to the Office of State Budget
35 and Management for the 2021-2023 fiscal biennium the following amounts for capital
36 improvement project codes, as defined in subsection (a) of this section:
37 Capital Improvements–
38 State Capital and Total FY FY
39 Infrastructure Fund Project Authorization 2021-2022 2022-2023
40 AOC21-1 $135,000 $135,000 –
41 DACS21-1 1,632,000 1,632,000 –
42 DACS21-2 3,518,000 3,518,000 –
43 DACS21-3 4,000,000 4,000,000 –
44 DACS21-4 8,000,000 4,000,000 –
45 DACS21-5 1,500,000 1,500,000 –
46 DACS21-6 2,400,000 2,400,000 –
47 DHHS21-1 1,600,000 1,600,000 –
48 DEQ21-1 55,000,000 5,500,000 13,750,000
49 DEQ-WRD21 N/A 44,469,664 35,231,560
50 DNCR21-1 1,000,000 1,000,000 –
51 DNCR21-2 4,000,000 4,000,000 –

1 DNCR21-3 2,500,000 2,500,000 –
2 DNCR21-4 10,000,000 5,000,000 5,000,000
3 DNCR21-5 10,000,00019,200,000 5,000,000 5,000,00010,000,000
4 DNCR21-6 75,000,000 41,233,563 33,766,437
5 DNCR21-7 5,000,000 5,000,000 –
6 DNCR21-8 4,000,000 4,000,000 –
7 DNCR21-9 800,000 800,000 –
8 DNCR21-10 4,200,000 4,200,000 –
9 DNCR21-12 12,200,000 9,000,000 3,200,000
10 DNCR21-13 60,000,000 8,000,000 15,000,000
11 DNCR21-14 6,000,000 6,000,000 –
12 DNCR21-15 6,500,000 6,500,000 –
13 DNCR21-16 5,000,000 5,000,000 –
14 DNCR21-17 3,000,000 3,000,000 –
15 DNCR22-1 350,000 – 350,000
16 DOA21-1 244,000,000 50,000,000 60,500,000
17 DOA21-2 13,700,000 13,700,000 –
18 DOA21-3 21,875,000 10,286,748 11,588,252
19 DOA21-4 5,000,000 5,000,000 –
20 DOA22-1 88,000,000 – 88,000,000
21 DOA22-2 5,000,000 – 5,000,000
22 DOA22-3 15,000,000 – 15,000,000
23 DOA22-4 7,000,000 – 7,000,000
24 DOI21-1 3,500,000 3,500,000 –
25 DPI21-1 23,416,952 19,482,815 3,934,137
26 DPS21-1 10,702,952 10,702,952 –
27 DPS21-2 1,831,000 1,831,000 –
28 DPS21-4 475,000 475,000 –
29 DPS21-5 4,170,000 4,170,000 –
30 DPS21-6 7,139,374 7,139,374 –
31 DPS21-7 17,845,933 8,922,967 8,922,967
32 DPS21-9 81,632,759 8,163,276 20,408,190
33 NG21-1 N/A 8,000,000 –
34 NG21-2 9,500,000 500,000 9,000,000
35 NG21-3 3,250,000 150,000 3,100,000
36 NG21-4 15,700,000 15,700,000 –
37 NCGA21-1 2,450,000 2,450,000 –
38 NCGA21-2 1,800,000 1,800,000 –
39 NCGA21-3 100,391,316180,000,000 – 11,391,316180,000,000
40 NCGA21-4 6,300,000 300,000 6,000,000
41 NCGA22-1 1,500,000 – 1,500,000
42 UNC/NCS21-1 4,000,000 4,000,000 –
43 UNC/NCS21-2 12,000,000 6,000,000 6,000,000
44 UNC/NCS21-3 4,000,000 4,000,000 –
45 UNC/NCS20-1 160,000,000180,000,000 18,250,000 36,500,000
46 UNC/CH20-1 150,000,000 10,000,000 18,750,000
47 UNC/CH20-2 60,000,00065,200,000 21,250,000 25,500,00030,700,000
48 UNC/CH22-1 2,000,000 – 2,000,000
49 UNC/ECS21-1 40,000,000 10,000,000 30,000,00025,000,000
50 UNC/ECS21-2 2,500,000 2,500,000 –
51 UNC/ECS21-3 7,500,00015,000,000 7,500,000 –5,000,000

1 UNC/ECS21-4 34,000,000 4,000,000 10,000,000
2 UNC/ASU21-1 25,000,000 12,500,000 12,500,000
3 UNC/ASU21-2 54,000,000 54,000,000 –
4 UNC/ASU22-1 9,000,000 – 9,000,000
5 UNC/SSM21-1 12,000,000 12,000,000 –
6 UNC/NCC21-1 3,011,000 3,011,000 –
7 UNC/ECU21-1 215,000,000 21,500,000 53,750,000
8 UNC/PEM21-1 91,000,000 9,100,000 22,750,000
9 UNC/FSU21-1 40,000,000 4,000,000 10,000,000
10 UNC/FSU21-2 63,000,000 6,300,000 13,750,000
11 UNC/FSU21-3 10,000,000 10,000,000 –
12 UNC/WCU21-1 9,200,000 9,200,000 –
13 UNC/WSS21-1 57,000,000 5,700,000 14,250,000
14 UNC/BOG21-1 15,000,000 – 3,750,000
15 UNC/R&R21 N/A 250,000,000 250,000,000
16 R&R21 N/A 200,000,000 200,000,000
17 CC21 400,000,000 100,000,000 100,000,000
18 CNC21 258,000,000 200,000,000 58,000,000
19 PERS21 N/A 2,000,000 2,000,000
20 FLEX21 100,000,000 – 25,000,000
21 UNC/ENG21 90,000,000 45,000,000 45,000,000
22 SCO22 N/A – 1,000,000
23 REL22 3,500,000 – 3,500,000"
24 SECTION 40.1.(c) Section 40.1(c2) of S.L. 2021-180, as amended by Section 9.1(c)
25 of S.L. 2021-189, reads as rewritten:
26 "SECTION 40.1.(c2) Of the funds allocated for project code UNC/R&R21, the following
27 sums shall be allocated for the following projects:
28 (1) Thirty million dollars ($30,000,000) for each fiscal year of the 2021-2023
29 fiscal biennium to North Carolina State University for repairs and renovations
30 to Dabney Hall.
31 (2) Ten million dollars ($10,000,000) for the 2021-2022 fiscal year to North
32 Carolina State University for repairs and renovations to Polk Hall.
33 (3) Two million five hundred thousand dollars ($2,500,000) for the 2022-2023
34 fiscal year to Elizabeth City State University for costs associated with project
35 code UNC/ECS21-3."
36 SECTION 40.1.(d) Section 40.1(d) of S.L. 2021-180 reads as rewritten:
37 "SECTION 40.1.(d) Notwithstanding G.S. 143C-8-13(a), the Board of Governors of The
38 University of North Carolina is authorized to utilize funds allocated for project code
39 UNC/R&R21 in subsection (b) of this section for the projects listed in this subsection. The Board
40 of Governors may reallocate funds in accordance with G.S. 143C-8-13(b); provided, however,
41 reallocation of funds intended for a project located at a particular constituent institution may only
42 be reallocated for repairs and renovations projects at that particular constituent institution. The
43 Board of Governors is authorized to utilize funds allocated for project code UNC/R&R21 that
44 are available after allocation for specific projects authorized in this Part and that exceed the
45 amount needed to fund intended projects at the constituent institutions as listed in this subsection.
46 The provisions of G.S. 143C-8-13(b)(4), as enacted by Section 40.10(b) of this act, shall not
47 apply to the projects listed in this subsection. The Board of Governors may prioritize funding for
48 the following proposed projects that the General Assembly intends to fund through the
49 2023-2025 fiscal biennium:
50 UNC Constituent Institution Proposed Project Cost
51 …

1 Elizabeth City State University–
2 Repair Campus Main Switch 700,000
3 Repair Campus Pump Station 650,000
4 Infrastructure Upgrades–Water & Electrical, Phase 1 12,000,000
5 Emergency Generator Power–Operations 4,900,000
6 Emergency Generator Power–Residence Halls 2,100,000
7 Campus-Wide Lockdown System 2,000,000
8 Building Demolition (4 Buildings) 1,500,000
9 Butler Residence Hall Renovations 2,500,000
10 Underground Infrastructure–
11 (Replace all campus plumbing gate valves/infrastructure for fire pump) 150,000
12 Underground Infrastructure–
13 (Replace 6-in. with 8-in. line to improve water volume/Campus North) 300,000
14 Jenkins Hall, Phase 2–Renovation of Laboratory and Classroom 400,000
15 Vaughn Center–Repair Student Phys. Ed. Learning Spaces–
16 (Pool, flooring, ceilings & building envelope) 550,000
17 Fine Arts–Roof Replacement 200,000
18 Dixon Hall–Classroom & Laboratory Renovations 400,000
19 ITC–Air Handler Replacement 300,000
20 Lester Hall–Demolition 495,000
21 Infrastructure Upgrades–Water & Electrical, Phase 2 27,000,000
22 Total Proposed Project Authorizations- Elizabeth City State University
23 56,145,00053,645,000
24 …."
25 SECTION 40.1.(e) Section 1(f) of S.L. 2020-81, as amended by Section 40.1(m) of
27 "SECTION 1.(f) For project code UNC/NCS20-1, notwithstanding G.S. 143C-4-5, North
28 Carolina State University is authorized to spend up to one hundred sixty eighty million dollars
29 ($160,000,000) ($180,000,000) on the project, but shall commit to providing funding of at least
30 eighty ninety million dollars ($80,000,000) ($90,000,000) from non-State sources on or before
31 June 30, 2022, as a match for the intended State allocations totaling eighty ninety million dollars
32 ($80,000,000) ($90,000,000) for the project."
33 SECTION 40.1.(f) Section 40.1(r) of S.L. 2021-180 reads as rewritten:
34 "SECTION 40.1.(r) Notwithstanding G.S. 143-341(4)e. and Article 7 of Chapter 146 of the
35 General Statutes, Statutes and any provision of G.S. 143-341(4) to the contrary, the Department
36 of Natural and Cultural Resources may enter into a memorandum of understanding or a lease
37 agreement with a nonprofit entity for the operation of the Hayes Manor facility and the Wyse
38 Fork Battlefield and other activities related to the operation of those sites.
39 At each of the State Historic Sites receiving funding from the State Capital and Infrastructure
40 Fund in this act, the Department of Natural and Cultural Resources shall seek to partner with
41 nonprofit organizations to provide funds and in-kind contributions for site development,
42 preservation, or operational support in order to minimize the use of public funds. The Department
43 of Natural and Cultural Resources shall report to the Joint Legislative Oversight Committee on
44 Agriculture and Natural and Economic Resources and the Fiscal Research Division no later than
45 April 1, 2022, with an estimate of any additional recurring costs associated with acquisition,
46 maintenance, and operation of the sites acquired pursuant to this subsection."
47 SECTION 40.1.(g) If House Bill 1068, 2021 Regular Session, becomes law, then
48 Section 2 of that act is repealed.
49
50 STATE CAPITAL AND INFRASTRUCTURE FUND CORRECTIONS

1 SECTION 40.2.(a) Section 40.17(a) of S.L. 2021-180, as enacted by Section 9.1(d)
2 of S.L. 2021-189 and amended in Section 18.1 of S.L. 2022-6, is amended by adding the
3 following new subdivisions to read:
4 "(59) The funds for the Town of Edenton in the sum of five million dollars
5 ($5,000,000) for the 2021-2022 fiscal year shall instead be provided as a grant
6 to Harbor Towns, Inc., a nonprofit corporation, to be used for tourism-based
7 development in the Towns of Plymouth, Columbia, Edenton, Manteo, and
8 Hertford and the City of Elizabeth City. Section 40.16 no longer applies to the
9 grant funds described in this subdivision.
10 (60) The funds for Fairview in the sum of two hundred thousand dollars ($200,000)
11 for the 2021-2022 fiscal year shall instead be provided as a grant to Buncombe
12 County for the purpose of park development in Fairview, a census designated
13 area.
14 (61) The funds for Western Piedmont Council of Governments in the sum of four
15 million five hundred thousand dollars ($4,500,000) for the 2021-2022 fiscal
16 year may also be used for capital improvement projects currently underway.
17 (62) The funds for the City of Southport in the sum of three hundred fifty thousand
18 dollars ($350,000) for the 2021-2022 fiscal year shall instead be provided as
19 a grant to J. Arthur Dosher Memorial Hospital Foundation, Inc., to be used for
20 capital improvements at Dosher Memorial Hospital.
21 (63) The funds for Rosewood Fire Department, Inc., in the sum of one hundred
22 thousand dollars ($100,000) for the 2021-2022 fiscal year may also be used
23 for equipment.
24 (64) The funds for East Burke Christian Ministries in the sum of twenty-five
25 thousand dollars ($25,000) for the 2021-2022 fiscal year may also be used for
26 equipment.
27 (65) The funds for Ball's Creek Camp Ground in the sum of three hundred thousand
28 dollars ($300,000) for the 2021-2022 fiscal year shall instead be provided to
29 Catawba County Historical Association, Inc., a nonprofit corporation, to be
30 used for repairs and renovations to Ball's Creek Camp Ground.
31 (66) The funds for Kiwanis Club of Statesville in the sum of five million dollars
32 ($5,000,000) for the 2021-2022 fiscal year shall instead be provided as a grant
33 to Iredell County for the purpose of capital improvements to the Iredell
34 County fairgrounds.
35 (67) The funds for First Contact Ministries in the sum of one million five hundred
36 thousand dollars ($1,500,000) for the 2022-2023 fiscal year shall instead be
37 used for the purchase and renovation or construction of a substance abuse
38 treatment facility.
39 (68) The funds for the Department of Natural and Cultural Resources for Moore's
40 Creek National Battlefield in the sum of one hundred twenty-five thousand
41 dollars ($125,000) for the 2021-2022 fiscal year may also be used for the
42 purchase of property at Alamance Battleground State Historic Site and any
43 other unit of the Division of State Historic Sites and Properties.
44 (69) The grant for Gaston College Cybersecurity in the sum of two million dollars
45 ($2,000,000) for the 2021-2022 fiscal year shall be reduced to the sum of one
46 million six hundred thousand dollars ($1,600,000) to be used for a new
47 cybersecurity facility.
48 (70) The grant for Davidson-Davie Community College Training Center in the sum
49 of fourteen million two hundred thousand dollars ($14,200,000) for the
50 2021-2022 fiscal year shall instead be provided in the form of grants as
51 follows:

1 a. Thirteen million two hundred thousand dollars ($13,200,000) for the
2 2021-2022 fiscal year to be provided to Davidson-Davie Community
3 College for a new training center.
4 b. One million dollars ($1,000,000) for the 2021-2022 fiscal year to be
5 provided to Davidson County First Hope Ministries, a nonprofit
6 corporation, to be used for capital improvements and equipment."
7 SECTION 40.2.(a1) Section 40.17(a) of S.L. 2021-180, as enacted by Section 9.1(d)
8 of S.L. 2021-189 and amended in Section 18.1 of S.L. 2022-6, is amended by adding the
9 following new subdivision to read:
10 (71) The funds for Anson County Economic Development Facilities in the sum of
11 eight million dollars ($8,000,000) for the 2021-2022 fiscal year shall instead
12 be provided to Anson Economic Development Corporation, a nonprofit
13 corporation, to be used for capital improvement–related economic
14 development purposes, including facilities."
15 SECTION 40.2.(b) Section 40.17(a)(51) of S.L. 2021-180, as amended by Section
16 18.1 of S.L. 2022-6, reads as rewritten:
17 "(51) The funds for the Town of Falcon in the sum of fifty-five thousand dollars
18 ($55,000) for the 2021-2022 fiscal year may be used for capital improvements,
19 subject to the requirements provided in Section 40.16 of this act. Grant funds
20 may also be used to offset expenditures incurred for the purpose of the grant
21 prior to July 1, 2021."
22 SECTION 40.2.(c) Section 40.1(c1)(3) of S.L. 2021-180 reads as rewritten:
23 "(3) Three million six hundred seventy-five thousand dollars ($3,675,000) for the
24 2021-2022 fiscal year to the Department of Health and Human Services for
25 repair and renovation of the Avery Building on the Broughton Hospital
26 campus. The Department of Health and Human Services may use up to three
27 hundred sixty-five thousand dollars ($365,000) of the funds allocated in this
28 subdivision for equipment."
29 SECTION 40.2.(d) Funds allocated to Western Piedmont Community College
30 pursuant to Sections 40.1(e) and (f) of S.L. 2021-180 may be used for projects that began
31 construction or were active as of June 30, 2021.
32 SECTION 40.2.(e) Section 40.7(b) of S.L. 2021-180 reads as rewritten:
33 "SECTION 40.7.(b) Stream debris removal projects funded under this section shall be
34 exempt from the requirements of Articles 1, 4, and 7 of Chapter 113 Chapter 113A of the General
35 Statutes, as well as requirements for stormwater or water quality permits under Article 21 of
36 Chapter 143 of the General Statutes. The Department is directed to waive any right of
37 certification under section 401 of the federal Clean Water Act with respect to projects funded by
38 this act."
39 SECTION 40.2.(f) Notwithstanding any provision of law or the Committee Report
40 referenced in Section 43.2 of S.L. 2021-180 to the contrary, the allocation of seven million five
41 hundred thousand dollars ($7,500,000) from the State Capital and Infrastructure Fund to the
42 Friends of the Ecusta Trail, Inc., a nonprofit corporation, for removal of the Big Hungry Dam set
43 forth in subdivision 40.17(a)(41) of S.L. 2021-180, as enacted by Section 9.1(d) of S.L. 2021-189
44 and amended by Section 18.1 of S.L. 2022-6, shall instead be used for development of the Ecusta
45 Trail.
46 SECTION 40.2.(g) If Senate Bill 372, 2021 Regular Session, becomes law, then
47 subsection (a1) of this section is repealed.
48
49 SCIF FUNDING CHANGE FOR BROADBAND
50 SECTION 40.3.(a) G.S. 143C-4-3.1 reads as rewritten:
51 "§ 143C-4-3.1. State Capital and Infrastructure Fund.

1 …
2 (b) Creation and Source of Funds. – The State Capital and Infrastructure Fund (the Fund)
3 is established as a special fund in the General Fund to be administered by the Office of State
4 Budget and Management to carry out the provisions of this section. With the exception of debt
5 service obligations, appropriations from the Fund may be administered by other State agencies
6 as deemed necessary by the Office of State Budget and Management. Interest and investment
7 earnings received on monies in the Fund shall be credited to the Fund. The Fund shall consist of
8 the following additional sources:
9 (1) The following amounts transferred from the General Fund at the beginning of
10 the applicable fiscal year:
11 a. For the 2021-2022 fiscal year, the sum of one billion three hundred
12 million dollars ($1,300,000,000).
13 b. For the 2022-2023 fiscal year, the sum of one billion three hundred
14 forty-five sixty-five million five hundred thousand dollars
15 ($1,345,500,000).($1,365,500,000).
16 c. For the 2023-2024 fiscal year, the sum of one billion three four
17 hundred ninety-two twelve million five hundred ninety-two thousand
18 five hundred dollars ($1,392,592,500).($1,412,592,500).
19 d. For the 2024-2025 fiscal year, the sum of one billion four hundred
20 forty-one sixty-one million three hundred thirty-three thousand two
21 hundred thirty-eight dollars ($1,441,333,238).($1,461,333,238).
22 e. For the 2025-2026 fiscal year, the sum of one billion one hundred
23 twenty million dollars ($1,100,000,000).($1,120,000,000).
24 f. For each fiscal year after the 2025-2026 fiscal year, the transfer shall
25 be increased three and one-half percent (3.5%) over the amount
26 required under this subdivision for the preceding fiscal year.
27 (2) through (4) Repealed by Session Laws 2021-180, s. 5.7(a), effective June 30,
28 2021.
29 …."
30 SECTION 40.3.(b) Section 7 of S.L. 2019-230 reads as rewritten:
31 "SECTION 7.(a) There is transferred from the General Fund to the State Capital and
32 Infrastructure Fund the sum of fifteen million dollars ($15,000,000) for each fiscal year from the
33 2019-2020 fiscal year through the 2028-2029 fiscal year.
34 "SECTION 7.(b) There is appropriated from the State Capital and Infrastructure Fund to
35 the Growing Rural Economies with Access to Technology Fund the sum of fifteen twenty million
36 dollars ($15,000,000) ($20,000,000) for each fiscal year from the 2019-2020 fiscal year through
37 the 2028-2029 fiscal year."
38 SECTION 40.3.(c) Subsection (b) of this section becomes effective July 1, 2022,
39 and applies to fiscal years beginning on or after that date.
40
41 NON-GENERAL FUND/NON-SCIF CAPITAL PROJECT AUTHORIZATIONS
43 "SECTION 40.5.(a) The General Assembly authorizes the following capital projects to be
44 funded with receipts or from other non-General Fund and non-State Capital and Infrastructure
45 Fund sources available to the appropriate department:
46 Amount of Non-General Fund
47 Name of Project Funding Authorized
48 FY 2021-2022 FY 2022-2023
49
50 Department of Natural and Cultural Resources
51 Edenton State Historic Site–

1 Frinks House Renovations $300,000 –
2 Transportation Museum–
3 Southern Railway Car Exhibit Renovations 287,442 –
4 Bennett Place State Historic Site–
5 Visitor Center Renovations 300,000 –
6 USS NC Battleship–
7 Mast Repairs 1,000,000 –
8 Living With Water 2,335,431 –
9 Bentonville State Historic Site–
10 Harper House Renovations 115,000 –
11 NC Museum of Art–
12 Terrace & Green Project 2,500,000 –
13 Sip Café Renovations 122,000
14 Brunswick Town State Historic Site–
15 Shoreline Stabilization 3,000,000 –
16 Charlotte Hawkins Brown Museum–
17 Memorial Galen Stone Hall 1,100,000 –
18 Tea House Renovations 425,000 –
19 Visitor Center 278,763
20 Fort Fisher Aquarium Renovation & Expansion 4,200,000
21 NC Zoo–
22 Red Wolf Propagation Expansion–Phase 1 466,000
23 Stingray Exhibit 1,500,000
24 Department of Agriculture and Consumer Services
25 State Fair–Repairs & Improvements 5,000,000 –
26 State Fair–Advance Planning Funds 2,000,000
27 NC Forest Service–
28 Design & Install New Bridges 25,000 $100,000
29 Equipment Shelters 500,000 500,000
30 Parking Lot Expansions 500,000 250,000
31 Picnic Shelters 25,000 50,000
32 Restrooms 25,000 125,000
33 Storage Buildings 125,000 –
34 Viewing Platforms 25,000 125,000
35 State Research Stations–
36 Equipment Storage Shelter 500,000 –
37 Dilapidated Building Demolition 100,000 –
38 Livestock & Mission Critical Facility Improvements – 500,000
39 Irrigation Improvements at Research Stations – 500,000
40 WNC Ag. Center Fairgrounds–Ticket Booth & Restrooms 750,000
41 Frasier Fir Research Building 375,000
42 Butner Food Distribution Warehouse Addition 10,000,000
43 Steve Troxler Ag. Science Center–Infrastructure Improvements 400,000
44 Raleigh State Farmers Market–Kitchen Annex 250,000
45 Department of Military and Veterans Affairs
46 New State Veterans Home–Raleigh 85,700,000 –
48 Alcoholic Beverage Control–
49 Office Roof Replacement 864,000 –
50 Warehouse Office Renovation 480,000 –
51 Warehouse Storage 313,000 –

1 Warehouse Roof Repair 400,000
2 New Office/Warehouse Planning 4,700,000
3 Nash Vocational Building Addition 2,654,311
4 Wildlife Resources Commission
5 Sykes Depot Greenhouse 250,000
6
7 TOTAL AMOUNT OF NON-GENERAL
8 FUND CAPITAL PROJECTS
9 AUTHORIZED $105,544,873 $2,150,000$30,496,074
10 …."
11
12 SIX-YEAR INTENDED PROJECT ALLOCATION SCHEDULE
14 "SECTION 40.2. It is the intent of the General Assembly to fund capital improvement
15 projects on a cash flow basis and to plan for future project funding based upon projected
16 availability in the State Capital and Infrastructure Fund. Nothing in this section shall be construed
17 (i) to appropriate funds or (ii) as an obligation by the General Assembly to appropriate funds for
18 the projects listed in future years. The following schedule lists capital improvement projects that
19 will begin or be completed in fiscal years outside of the 2021-2023 fiscal biennium and estimated
20 amounts (in thousands) needed for completion of those projects:
21
22 Project Code FY21-22 FY22-23 FY23-24 FY24-25 FY25-26 FY26-27
23
24 UNC/R&R21 250,000 250,000 250,000 250,000 250,000 250,000
25 R&R21 200,000 200,000 200,000 200,000 200,000 200,000
26 PERS21 2,000 2,000 2,000 2,000 2,000 2,000
27 FLEX21 – 25,000 50,000 25,000 – –
28 DEQ21-1 5,500 13,750 22,000 13,750 – –
29 DOA21-1 50,000 60,500 54,000 64,500 – –
30 DNCR21-13 8,000 15,000 22,000 15,000 – –
31 DPS21-3 – – – 11,409 – –
32 DPS21-9 8,163 20,408 32,653 20,408 – –
33 NCGA21-3 – 11,391.3 38,000 51,000 – –
34 UNC/ECU21-1 21,500 53,750 86,000 53,750 – –
35 UNC/NCS20-1 18,250 36,500 18,25028,250 – – –
36 UNC/CH20-121,25010,000 25,50018,75010,75020,000–19,250 – –
37 UNC/CH20-213,75021,25018,00025,500 10,750 – – –
38 UNC/PEM21-1 9,100 22,750 36,400 22,750 – –
39 UNC/ECS21-4 4,000 10,000 10,000 10,000 – –
40 UNC/FSU21-1 4,000 10,000 16,000 10,000 – –
41 UNC/FSU21-2 6,300 13,750 25,20027,200 15,750 – –
42 UNC/WSS21-1 5,700 14,250 22,800 14,250 – –
43 UNC/BOG21-1 – 3,750 3,750 3,750 3,750 –
44 CC 100,000 100,000 100,000 100,000 – –
45 SCO22 – 1,000 1,000 1,000 1,000 –"
46
47 DOWNTOWN GOVERNMENT COMPLEX CAPITAL PROJECTS
48 SECTION 40.6.(a) For project code DOA22-1, the Department of Administration
49 shall initiate planning and design for the construction of a new State Government Executive
50 Headquarters facility to include the Governor's staff, State agency personnel and operations, and
51 chamber for Council of State meetings. The construction phase of this project shall begin no later

1 than July 1, 2023. The Department of Administration shall use all or portions of the following
2 parcels of real property for the State Government Executive Headquarters facility project:
3 (1) Wake County real estate ID# 0121208
7 SECTION 40.6.(b) For project code NCGA21-3, the General Assembly shall be
8 considered the funded agency, pursuant to G.S. 143-135.26(1), and, notwithstanding
9 G.S. 143-341 or any other provision of law to the contrary, shall initiate and have final authority
10 over any activity related to the planning and construction only for the downtown Education
11 Campus, a facility for the use of The University of North Carolina System Office, the Community
12 Colleges System Office, the Department of Public Instruction, and the Department of Commerce
13 to be situated on the parcel of land in the City of Raleigh, with Wake County real estate ID#
14 0109759. The Department of Administration, in conjunction with the Legislative Services Office,
15 shall relocate all State agency staff and operations from this site on or before July 1, 2023.
16 Demolition of the structure currently located on this parcel shall be completed no later than
17 October 31, 2023.
18 SECTION 40.6.(c) The Legislative Services Office, in connection with the expanded
19 Government Facilities Master Plan (Plan), initiated pursuant to Section 36.2(a) of S.L. 2018-5
20 and Section 40.1(h) of S.L. 2021-180, for project code NCGA22-1, shall relocate the principal
21 offices of the Office of State Auditor from the Old Revenue Building to the Albemarle Building,
22 as outlined in the Plan. All State Auditor staff and operations located in the Old Revenue Building
23 shall be relocated on or before April 1, 2023. Notwithstanding G.S. 143C-4-3.1(g) and
24 G.S. 143C-8-11, funds allocated for project code NCGA22-1 shall not revert.
25 SECTION 40.6.(d) Upon completion of the relocation of the Office of State Auditor
26 described in subsection (c) of this section, the Department of Administration shall utilize funds
27 allocated for project code DOA22-2 to begin renovation of the Old Revenue Building to support
28 the relocation of State agency staff and operations displaced as a result of the project outlined in
29 subsection (b) of this section. The Department of Administration shall complete necessary
30 renovations and relocate State agency staff and operations no later than July 1, 2023. Available
31 space in the Albemarle Building and the Department of Public Instruction building shall also be
32 used to temporarily accommodate displaced State agency staff and operations during the
33 relocation and transition process.
34 The Department of Insurance shall reduce its use of space within the Albemarle
35 Building to the amount identified in the Government Facilities Master Plan (Plan), initiated
36 pursuant to Section 36.2(a) of S.L. 2018-5 and Section 40.1(h) of S.L. 2021-180. Any remaining
37 space available within the Albemarle Building after the relocation of the Office of State Auditor
38 under subsection (c) of this section shall be used for flexible open office space to accommodate
39 an agency displaced by the construction of the downtown Education Campus as identified in the
40 Plan. The Department of Administration shall use funds allocated for project code REL22 for
41 expenses related to the relocation of State agency staff and operations, with the exception of the
42 Office of the State Auditor. The moves of personnel and equipment to consolidate the space
43 occupied by the Department of Insurance within the Albemarle Building shall be completed on
44 or before January 30, 2023.
45 SECTION 40.6.(f) For project code SCO22, the Department of Administration shall
46 use at least fifty percent (50%) of the funds allocated to support the project management staff of
47 the Capital Project Management Unit within the State Construction Office. The remaining funds
48 shall be used to support salary adjustments and additional project management and plan review
49 positions within the State Construction Office. No portion of the funds described in this
50 subsection shall be used for asset management positions involving resource saving, energy

1 efficiency, or sustainability. Upon request, the Department of Administration shall assist a funded
2 agency with any project listed in this section.
3 SECTION 40.6.(g) The Department of Administration shall sell the properties
4 situated on the parcels of land in the City of Raleigh, with Wake County real estate ID# 0102702
5 (Department land asset 5498), and real estate ID# 0180361 (Department land asset 5783) for fair
6 market value. No service charge into the State Land Fund shall be deducted from or levied against
7 the proceeds of the sale of the properties listed in this subsection. Notwithstanding G.S. 146-30,
8 the proceeds of the sale of the properties listed in this subsection shall be handled in accordance
9 with the following priority:
10 (1) First, in accordance with the provisions of any trust or other instrument of title
11 whereby title to the subject real property was acquired by the State.
12 (2) Second, to reimburse the Department of Administration for any funds
13 expended in the sale of the subject real property.
14 (3) Third, to be deposited into the Downtown Government Complex Reserve,
15 established in Section 2.2 of this act.
16 The Department of Administration shall obtain an appraisal assessing the value for
17 the properties listed in this subsection according to their best and highest use and shall submit
18 the appraisals to the Joint Legislative Oversight Committee on Capital Improvements and the
19 Fiscal Research Division no later than January 1, 2023.
20 SECTION 40.6.(h) Section 40.1(g) of S.L. 2021-180 reads as rewritten:
21 "SECTION 40.1.(g) For project code NCGA21-2, the Legislative Services Office shall
22 utilize funds appropriated for the 2021-2022 fiscal year to expand upon the Government Facilities
23 Master Plan initiated pursuant to Section 36.2(a) of S.L. 2018-5, with an emphasis on potential
24 remodeling expenditures and the use of temporary workspace options to more effectively
25 renovate and remodel State-owned property. The expanded Government Facilities Master Plan
26 may also consider the cost and feasibility of leasing and leasing alternatives, including the use of
27 privately owned structures, and potential energy efficiency savings. The expanded Government
28 Facilities Master Plan shall focus on the following State-owned properties in the downtown
29 government complex:
30 (1) The Department of Public Instruction/Education Building.
31 (2) Dobbs Building.
32 (3) Bath Building.
33 (4) Albemarle Building.
34 (5) The Department of Administration Building.
35 (6) Archdale Building.
36 (7) Revenue Building.
37 The expanded Government Facilities Master Plan outlined in this subsection shall also
38 consider available options for consolidating the facilities of the Department of Commerce, The
39 University of North Carolina System Office, the Community Colleges System Office, and the
40 Department of Public Instruction into a single location located in the downtown government
41 complex."
42 SECTION 40.6.(i) The Office of State Controller shall transfer to the Downtown
43 Government Complex Reserve, established in Section 2.2 of this act, the following monies
44 allocated by the Office of State Budget and Management for repairs and renovations projects
45 during the 2021-2022 fiscal year:
46 (1) Two million dollars ($2,000,000) intended for the Archdale Building
47 renovation advance planning study.
48 (2) Seventeen million six hundred forty-one thousand five hundred eighty-one
49 dollars ($17,641,581) intended for the Administration Building Renovation,
50 3rd and 4th Floors with Mechanical Room Upgrades project.

1 SECTION 40.6.(j) For projects described in this section where State agency
2 employees and operations are being moved or relocated, the Alternative Workplace
3 Requirements methodology developed for the State of North Carolina during a project conducted
4 with the assistance of the Office of State Auditor in 2019 shall be utilized. The Department of
5 Administration, in conjunction with the Legislative Services Office, shall complete the
6 Alternative Workplace Requirements evaluations of all State agencies being relocated from the
7 Administration Building on or before January 1, 2023.
8 SECTION 40.6.(k) The Department of Information Technology, in conjunction with
9 the Legislative Services Office, shall complete the fiber loop project on or before December 31,
10 2022.
11 SECTION 40.6.(l) The Department of Administration and the Department of
12 Information Technology, in conjunction with the Legislative Services Office, shall complete the
13 communications network hub relocation project in support of project code NCGA21-3, as
14 described in subsection (b) of this section, on or before July 1, 2023.
15
16 CAPITAL PROJECT INFLATIONARY RESERVE
17 SECTION 40.7. There is established in the State Capital and Infrastructure Fund a
18 Capital Project Inflationary Reserve to make funds available for State agency capital
19 improvement projects that have been authorized by the General Assembly and have received an
20 allocation from the State Capital and Infrastructure Fund. Funds reserved in the Capital Project
21 Inflationary Reserve pursuant to this section do not constitute an "appropriation made by law,"
22 as that phrase is used in Section 7(1) of Article V of the North Carolina Constitution. State
23 agencies requesting funds from the Capital Project Inflationary Reserve must meet the following
24 criteria:
25 (1) The State agency has significantly reduced the scope of the project since the
26 project was authorized by an act of the General Assembly.
27 (2) The State agency provides (i) evidence of the reduction of scope as required
28 in subdivision (1) of this section and (ii) documentation supporting increased
29 costs associated with supply chain or inflationary pressures.
30 A State agency requesting funds from the Capital Project Inflationary Reserve shall
31 submit the information required under this section in writing to the Joint Legislative Oversight
32 Committee on Capital Improvements and the Fiscal Research Division. The Joint Legislative
33 Oversight Committee on Capital Improvements may make recommendations on the use of funds
34 in the Capital Project Inflationary Reserve to the chairs of the House Appropriations Committee
35 and the chairs of the Senate Appropriations/Base Budget Committee. For the purposes of this
36 section, the term "State agency" has the same meaning as in G.S. 143C-1-1(d)(24).
37
38 LGC CAPITAL PROJECT ORDINANCES
39 SECTION 40.8. G.S. 159-13.2 reads as rewritten:
40 "§ 159-13.2. Project ordinances.
41 (a) Definitions. –
42 …
43 (2) "Grant project" means a project financed in whole or in part by revenues
44 received from the federal and/or State government or other grant or settlement
45 funds for operating or capital purposes as defined by the grant contract.
46 …
47 (c) Adoption of Project Ordinances. – If a local government or public authority intends
48 to authorize a capital project or a grant project by a project ordinance, it shall not begin the project
49 until it has adopted a balanced project ordinance for the life of the project. A project ordinance
50 is balanced when revenues estimated to be available for the project equal appropriations for the
51 project. A project ordinance shall clearly identify the project and authorize its undertaking,

1 identify the estimated revenues that will finance the project, and make the appropriations
2 necessary to complete the project. A local government or public authority may incur obligations
3 and make disbursements authorized by the budget appropriations before receiving estimated
4 revenues and may use available fund balance from the general fund or enterprise fund associated
5 with the project to fund the disbursements.
6 …."
7
8 INCREASE DOLLAR THRESHOLD FOR CAPITAL PROJECTS
9 SECTION 40.9.(a) G.S. 116-31.11 reads as rewritten:
10 "§ 116-31.11. Powers of Board regarding certain fee negotiations, contracts, and capital
11 improvements.
12 (a) Notwithstanding G.S. 143-341(3) and G.S. 143-135.1, the Board shall, with respect
13 to the design, construction, or renovation of buildings, utilities, and other property developments
14 of The University of North Carolina requiring the estimated expenditure of public money of two
15 million dollars ($2,000,000) four million dollars ($4,000,000) or less:
16 (1) Conduct the fee negotiations for all design contracts and supervise the letting
17 of all construction and design contracts.
18 (2) Develop procedures governing the responsibilities of The University of North
19 Carolina and its affiliated and constituent institutions to perform the duties of
20 the Department of Administration and the Director or Office of State
21 Construction under G.S. 133-1.1(d) and G.S. 143-341(3).
22 (3) Develop procedures and reasonable limitations governing the use of open-end
23 design agreements, subject to G.S. 143-64.34 and the approval of the State
24 Building Commission.
25 (4) Use existing plans and specifications for construction projects, where feasible.
26 Prior to designing a project, the Board shall consult with the Department of
27 Administration on the availability of existing plans and specifications and the
28 feasibility of using them for a project.
29 …."
30 SECTION 40.9.(b) G.S. 143-131 reads as rewritten:
31 "§ 143-131. When counties, cities, towns and other subdivisions may let contracts on
32 informal bids.
33 (a) All contracts for construction or repair work or for the purchase of apparatus, supplies,
34 materials, or equipment, involving the expenditure of public money in the amount of thirty
35 thousand dollars ($30,000) or more, but less than the limits prescribed in G.S. 143-129, made by
36 any officer, department, board, local school administrative unit, or commission of any county,
37 city, town, or other subdivision of this State shall be made after informal bids have been secured.
38 secured; provided, however, that The University of North Carolina and its constituent institutions
39 shall be required to comply with the provisions of this subsection for all contracts for construction
40 or repair work involving the expenditure of public money in the amount of one hundred thousand
41 dollars ($100,000) or more, but less than the limits prescribed in G.S. 143-129. All such contracts
42 shall be awarded to the lowest responsible, responsive bidder, taking into consideration quality,
43 performance, and the time specified in the bids for the performance of the contract. It shall be the
44 duty of any officer, department, board, local school administrative unit, or commission entering
45 into such contract to keep a record of all bids submitted, and such record shall not be subject to
46 public inspection until the contract has been awarded.
47 …."
48 SECTION 40.9.(c) This section is effective when it becomes law and applies to
49 contracts awarded on or after that date.
50
51 MURPHEY SCHOOL LEASE

1 SECTION 40.10.(a) For purposes of this section, the term "Murphey School Lease"
2 means the lease of the old Murphey School property from the State of North Carolina to the City
3 of Raleigh as directed by Section 40.7 of Chapter 1100 of the 1987 Session Laws.
4 SECTION 40.10.(b) On or before December 31, 2022, and notwithstanding any
5 requirement of G.S. 146-29 to the contrary, the State of North Carolina shall extend the term of
6 the Murphey School Lease until June 30, 2041.
7
8 GRANTS TO NON-STATE ENTITIES
9 SECTION 40.11. Section 40.8 of S.L. 2021-180 shall apply to nonrecurring funds
10 allocated in this act from the State Capital and Infrastructure Fund as grants to non-State entities,
11 as defined by G.S. 143C-1-1(d).
12
13 PART XLI. TRANSPORTATION
14
15 CASH FLOW HIGHWAY FUND AND HIGHWAY TRUST FUND
16 SECTION 41.1.(a) Subsections (b) and (c) of Section 41.1 of S.L. 2021-180 are
17 repealed.
18 SECTION 41.1.(b) The General Assembly authorizes and certifies anticipated
19 revenues for the Highway Fund as follows:
20 For Fiscal Year 2023-2024 $2,912.0 million
25 SECTION 41.1.(c) The General Assembly authorizes and certifies anticipated
26 revenues for the Highway Trust Fund as follows:
32 SECTION 41.1.(d) The Department of Transportation, in collaboration with the
33 Office of State Budget and Management, shall develop a five-year revenue forecast. The
34 five-year revenue forecast developed under this subsection shall be used (i) to develop the
35 five-year cash flow estimates included in the biennial budgets, (ii) to develop the Strategic
36 Transportation Improvement Program, and (iii) by the Department of the State Treasurer to
37 compute transportation debt capacity.
38
39 CONTINGENCY FUNDS
40 SECTION 41.2.(a) The funds appropriated in this act to the Department of
41 Transportation, Construction – Contingency Fund Code for the 2022-2023 fiscal year shall be
42 allocated statewide for rural or small urban highway improvements and related transportation
43 enhancements to public roads and public facilities, industrial access roads, railroad infrastructure,
44 and spot safety projects, including pedestrian walkways that enhance highway safety. Projects
45 funded pursuant to this subsection require prior approval by the Secretary of Transportation.
46 Funds allocated under this subsection shall not revert at the end of the applicable fiscal year but
47 shall remain available until expended. The use of funds that do not revert under this subsection
48 is not restricted to the fiscal year in which the funds were allocated.
49 SECTION 41.2.(b) The Department of Transportation shall report to the members
50 of the General Assembly on projects funded pursuant to subsection (a) of this section in each
51 member's district prior to construction. The Department shall make a quarterly comprehensive

1 report on the use of these funds to the Joint Legislative Transportation Oversight Committee and
2 the Fiscal Research Division.
3
4 IIJA GRANTS REPORT
5 SECTION 41.3. Beginning October 1, 2022, and quarterly thereafter, the
6 Department of Transportation shall submit a report to the Joint Legislative Transportation
7 Oversight Committee (JLTOC) and the Fiscal Research Division on all Infrastructure Investment
8 and Jobs Act (IIJA) grants applied for and awarded to the Department. The report shall include:
9 type of grant and administering federal agency, Department division responsible for
10 administering the funds, amount of funding and period of performance, required match and
11 sources of matching funds, and contract performance measures.
12
13 EXTENSION FOR AIRPORTS TO EXPEND OR ENCUMBER FUNDS ALLOCATED
14 FOR 2019-2021 FISCAL BIENNIUM
15 SECTION 41.4. Notwithstanding any provision of law to the contrary, an airport
16 allocated funds under Section 4.7 of S.L. 2019-231 shall have until June 30, 2024, to expend or
17 encumber those funds.
18
19 BRIDGE NAMING
20 SECTION 41.5. The Department of Transportation shall designate the bridges
21 described in the subdivisions below as follows:
22 (1) The bridge on North Carolina Highway 120 that crosses U.S. Highway 74 in
23 Rutherford County as the "Master Trooper John S. Horton Bridge."
24 (2) The bridge on North Carolina Highway 242 that crosses U.S. Highway 74 in
25 Columbus County as the "Bill "Little Bill" Johnson Bridge."
26
27 INCREASE PERMISSIBLE USE OF BRIDGE PROGRAM FUNDS FOR CULVERTS
28 SECTION 41.6. G.S. 136-76.2(b) reads as rewritten:
29 "(b) Permissible Uses. – Funds appropriated, allocated, credited, or otherwise transferred
30 to the bridge program established under subsection (a) of this section may only be used for
31 improvements to culverts associated with a component of the State highway system and
32 improvements to structurally deficient and functionally obsolete bridges. No more than ten
33 percent (10%) twenty percent (20%) of the funds described in this subsection may be used for
34 improvements to culverts associated with a component of the State highway system, and the
35 funds may only be used for culverts that are 54 inches or greater in size and rated by the
36 Department as in poor condition."
37
38 TRANSFER OF FUNDS TO ADVANCE RIGHT-OF-WAY ACQUISITION ACCOUNT
39 SECTION 41.7.(a) The State Controller shall transfer the sum of one hundred nine
40 million eight hundred thirty-four thousand nine hundred seventy-two dollars ($109,834,972)
41 from the Highway Fund to the Highway Trust Fund Advance Right-of-Way Acquisition
42 Account. These funds shall be used by the Department of Transportation for the purchase of
43 property under the Undue Hardship Advance Acquisition Program (Undue Hardship Program).
44 SECTION 41.7.(b) The Department shall streamline the Undue Hardship Program
45 to ensure that property in a planned transportation project area is purchased expeditiously from
46 a property owner experiencing an undue hardship, as that term is defined in G.S. 136-186(a)(3),
47 resulting from a rescheduled or reprioritized Strategic Transportation Investment (STI) project.
48 Beginning October 1, 2022, the Department shall submit a quarterly report to the Joint Legislative
49 Transportation Oversight Committee (JLTOC) and the Fiscal Research Division containing the
50 Department's streamlined efforts, the amount of property purchased, and the number of hardship
51 claims by the Highway Division.

1
2 REIMBURSEMENT FOR TRAFFIC LIGHT FROM POWELL BILL FUNDS
3 SECTION 41.8. Notwithstanding any other provision of law to the contrary, from
4 the funds distributed in accordance with Section 41.27 of S.L. 2021-180 and G.S. 136‑41.1
5 through G.S. 136‑41.4 to the Town of Holly Springs for the 2022-2023 fiscal year, the Town
6 shall use the sum of one hundred thousand dollars ($100,000) to reimburse the Pine Springs
7 Preparatory Academy for the study, design, and installation of a traffic safety light.
8
9 TIME-LIMITED COST ESCALATION ADJUSTMENT
10 SECTION 41.9.(a) Legislative Intent. – The intent of this section is to assist the road
11 and highway construction industry to maintain resilience as it is confronted with the precipitous
12 rise in construction material costs.
13 SECTION 41.9.(b) Authorization. – The funds appropriated from the Highway Fund
14 to the Department of Transportation for "Contracts – Cost Escalation" shall be used by the
15 Department to adjust construction contracts based upon increased construction material costs, if
16 all of the following conditions are met:
17 (1) The Department awarded the contract on or before March 1, 2022, and either
18 contract performance was not completed, or the final estimate of the total
19 contract cost was not completed by this date.
20 (2) The vendor makes a claim under this section, on a form developed by the
21 Department, that contains the verified material cost increases and the adjusted
22 new total contract price. The vendor shall make the claim within 60 days of
23 the enactment of this act, and the Department shall issue a written decision
24 within 30 days of a claim under this section.
25 SECTION 41.9.(c) Reversion. – Unexpended funds appropriated for the purpose
26 described in subsection (b) of this section that remain after all claims are decided and paid shall
27 revert to the Reserve for General Maintenance (GMR) in the Highway Fund.
28
29 EXAMS FOR RESTRICTED INSTRUCTION PERMIT
30 SECTION 41.10.(a) G.S. 20-7 reads as rewritten:
31 "§ 20-7. Issuance and renewal of drivers licenses.
32 …
33 (m) Instruction Permit. – The Division upon receiving proper application may in its
34 discretion issue a restricted instruction permit effective for a school year or a lesser period to any
35 of the following applicants:
36 …
37 (1a) A driver training instructor qualified under G.S. 115C-215(e) or
38 G.S. 20-323(b) may administer any vision test or examination of physical
39 condition required for the issuance of a restricted instruction permit to an
40 applicant under this section. The examining instructor may also provide any
41 signature required by the Division to verify the results of the vision test and
42 examination of physical condition.
43 …."
44 SECTION 41.10.(b) The Commissioner of Motor Vehicles shall adopt rules or
45 amend its rules consistent with the provisions of this section. The Commissioner may use the
46 procedure set forth in G.S. 150B-21.1 to adopt or amend any rules as required under this section.
47 SECTION 41.10.(c) This section becomes effective October 1, 2022, and applies to
48 restricted instruction permits issued on or after that date.
49
50 PART XLII. FINANCE
51

1 EXPAND INCOME TAX EXCLUSION OF MILITARY RETIREMENT PAY TO NOAA
2 AND U.S. PUBLIC HEALTH SERVICE RETIREES
3 SECTION 42.1.(a) G.S. 105-153.5(b)(5a) reads as rewritten:
4 "(5a) The amount received during the taxable year from the United States
5 government for the payments listed in this subdivision. Amounts deducted
6 under this subdivision may not also be deducted under subdivision (5) of this
7 subsection. The payments are:
8 a. Retirement pay for service in the Armed Forces uniformed services of
9 the United States to a retired member that meets either of the
10 following:criteria listed in this sub-subdivision. For purposes of this
11 sub-subdivision, the term "uniformed services" has the same meaning
12 as in 10 U.S.C. § 101(a)(5). The criteria are:
13 1. Served at least 20 years.years in the uniformed services.
14 2. Medically retired under 10 U.S.C. Chapter 61. This deduction
15 does not apply to severance pay received by a member person
16 due to separation from the member's armed forces.under 10
17 U.S.C. Chapter 61.
18 b. Payments of a Plan defined in 10 U.S.C. § 1447 to a beneficiary of a
19 retired member eligible to deduct retirement pay under
20 sub-subdivision a. of this subdivision."
21 SECTION 42.1.(b) This section is effective for taxable years beginning on or after
22 January 1, 2022.
23
24 SALES TAX EXEMPTION FOR INTERSTATE AIR AND GROUND COURIERS
26 "§ 105-164.3. Definitions.
27 The following definitions apply in this Article:
28 …
29 (108) Interstate air and ground courier. – A person whose primary business is the
30 furnishing of air and ground delivery of individually addressed letters and
31 packages for compensation, in interstate commerce, except by the United
32 States Postal Service.
33 …
34 (166) Package sorting facility. – A facility that satisfies both of the following
35 conditions:
36 a. The facility is used primarily for sorting and distributing letters and
37 packages for an interstate air and ground courier.
38 b. The Secretary of Commerce has certified that an investment of private
39 funds of at least one hundred million dollars ($100,000,000) has been
40 or will be made in real and tangible personal property for the facility
41 within five years after the date on which the first property investment
42 is made and that the facility will achieve an employment level of at
43 least 400 within five years after the date the facility is placed into
44 service and maintain that minimum level of employment throughout
45 its operation.
46 …."
47 SECTION 42.2.(b) G.S. 105-164.13 reads as rewritten:
48 "§ 105-164.13. Retail sales and use tax.
49 The sale at retail and the use, storage, or consumption in this State of the following items are
50 specifically exempted from the tax imposed by this Article:
51 …

1 (45e) Sales to an interstate air and ground courier of materials handling equipment,
2 automated conveyor systems, racking systems, and related parts and
3 accessories for the storage or handling and movement of tangible personal
4 property at its package sorting facility. A qualifying item listed in this
5 subdivision purchased to fulfill a contract with an interstate air and ground
6 courier is exempt to the same extent as if purchased directly by the interstate
7 air and ground courier.
8 If the level of investment or employment required by G.S. 105-164.3(166)b.
9 is not timely made, achieved, or maintained, then the exemption provided
10 under this subdivision is forfeited. If the exemption is forfeited due to a failure
11 to timely make the required investment or to timely achieve the minimum
12 required employment level, then the exemption provided under this
13 subdivision is forfeited on all purchases. If the exemption is forfeited due to a
14 failure to maintain the minimum required employment level once that level
15 has been achieved, then the exemption provided under this subdivision is
16 forfeited for those purchases occurring on or after the date the taxpayer fails
17 to maintain the minimum required employment level. A taxpayer that forfeits
18 an exemption under this subdivision is liable for all past sales and use taxes
19 avoided as a result of the forfeiture, computed at the applicable State and local
20 rates from the date the taxes would otherwise have been due, plus interest at
21 the rate established under G.S. 105-241.21. Interest is computed from the date
22 the sales or use tax would otherwise have been due. The past taxes and interest
23 are due 30 days after the date of forfeiture. A taxpayer that fails to pay the past
24 taxes and interest by the due date is subject to the provisions of G.S. 105-236.
25 …."
26 SECTION 42.2.(c) This section becomes effective July 1, 2022, and applies to
27 purchases made on or after that date.
28
29 USE SALES TAX REVENUES FOR TRANSPORTATION NEEDS
30 SECTION 42.3.(a) G.S. 105-164.44M reads as rewritten:
31 "§ 105-164.44M. Transfer to Division of Aviation.Highway Fund.
32 (a) Aviation. – The net proceeds of the tax collected on aviation gasoline and jet fuel
33 under G.S. 105-164.4 must be transferred within 75 days after the end of each fiscal year to the
34 Highway Fund. This amount is annually appropriated from the Highway Fund to the Division of
35 Aviation of the Department of Transportation for prioritized capital improvements to general
36 aviation airports for time-sensitive aviation capital improvement projects for economic
37 development purposes.
38 (b) Transportation Needs. – At the end of each quarter, the Secretary must transfer to the
39 Funds listed below a percentage of the net proceeds of the tax collected under this Article at the
40 State's general rate of tax set in G.S. 105-164.4(a). The percentages that must be transferred are
41 as follows:
42 Fiscal Year Percentage to Highway Fund Percentage to Highway Trust Fund
43 2022-23 2% 0%
44 2023-24 1% 3%
45 2024-25 and thereafter 1.5% 4.5%."
47
48 QUARTERLY MOTOR FUEL TAX REFUND FOR OFF-HIGHWAY USE
50 "§ 105-449.106. Quarterly refunds for nonprofit organizations, taxicabs, and special mobile
51 equipment.equipment, and off-highway use.

1 …
2 (c) Special Mobile Equipment. – A person who purchases and uses motor fuel for the
3 off-highway operation of special mobile equipment registered under Chapter 20 of the General
4 Statutes may receive a quarterly refund, for the excise tax paid during the preceding quarter, at a
5 rate equal to the tax rate in effect under G.S. 105-449.80 for the time period for which the refund
6 is claimed, less the amount of sales and use tax due on the fuel under this Chapter, as determined
7 in accordance with G.S. 105-449.107(c). Chapter. An application for a refund must be made in
8 accordance with this Part.
9 (d) Off-Highway Use. – A person who purchases and uses motor fuel for a purpose other
10 than to operate a licensed highway vehicle may receive a quarterly refund for the excise tax paid
11 during the preceding calendar quarter. The amount of refund allowed is the tax rate in effect
12 under G.S. 105-449.80 for the time period less the amount of sales and use tax due on the fuel
13 under this Chapter. An application for a refund must be made in accordance with this Part."
14 SECTION 42.4.(b) The catch line for G.S. 105-449.107 reads as rewritten:
15 "§ 105-449.107. Annual refunds for off-highway use and use by certain vehicles with power
16 attachments."
17 SECTION 42.4.(c) G.S. 105-449.107(a) and (c) are repealed.
18 SECTION 42.4.(d) Part 5 of Article 36C of Chapter 105 of the General Statutes is
19 amended by adding a new section to read:
20 "§ 105-449.107A. Sales tax due on motor fuel.
21 (a) Sales Tax Amount. – Article 5 of Subchapter I of this Chapter determines the amount
22 of State sales and use tax to be deducted from a motor fuel excise tax refund identified in
23 subsection (b) of this section. Articles 39, 40, and 42 of Subchapter VIII of this Chapter and the
24 Mecklenburg First 1% Sales Tax Act determine the amount of local sales and use tax to be
25 deducted under this section from a motor fuel excise tax refund identified in subsection (b) of
26 this section. The cents-per-gallon cost of motor fuel used to calculate the amount of State and
27 local sales and use tax deducted from a claim for refund for each taxable period equals the average
28 of the United States city average price of finished motor gasoline and No. 2 diesel fuel for resale
29 in the "Consumer Price Index Detailed Reports" published by the Bureau of Labor Statistics of
30 the United States Department of Labor or data determined by the Secretary to be equivalent. The
31 average is computed by weighting the cost of finished motor gasoline and No. 2 diesel fuel by
32 the proportion of tax collected on each under this Article for the taxable period, rounding to the
33 nearest one-tenth of a cent (1/10¢). If the cents-per-gallon cost is exactly between two-tenths of
34 a cent (2/10¢), the average is rounded up to the higher of the two.
35 (b) Refunds Subject to Sales Tax Amount. – The sales tax amount must be deducted from
36 all of the following claims for refunds:
37 (1) Refunds for special mobile equipment pursuant to G.S. 105-449.106(c).
38 (2) Refunds for off-highway use pursuant to G.S. 105-449.106(d).
39 (3) Refunds for eligible vehicles with power attachments pursuant to
40 G.S. 105-449.107."
41 SECTION 42.4.(e) G.S. 105-164.13(11)a. reads as rewritten:
42 "a. Motor fuel, as taxed in Article 36C of this Chapter, except motor fuel
43 for which a refund of the per gallon excise tax is allowed under
44 G.S. 105-449.105A, G.S. 105-449.106(c) G.S. 105-449.106(c),
45 G.S. 105-449.106(d), or G.S. 105-449.107."
46 SECTION 42.4.(f) This section becomes effective January 1, 2023, and applies to
47 purchases of motor fuel on or after that date.
48
49 PART XLIII. MISCELLANEOUS
50
51 STATE BUDGET ACT APPLIES

1 SECTION 43.1. The provisions of the State Budget Act, Chapter 143C of the
2 General Statutes, are reenacted and shall remain in full force and effect and are incorporated in
3 this act by reference.
4
5 COMMITTEE REPORT
6 SECTION 43.2.(a) The Joint Conference Committee Report on the Current
7 Operations Appropriations Act of 2022 for House Bill 103, dated June 28, 2022, which was
8 distributed in the Senate and used to explain this act, shall indicate action by the General
9 Assembly on this act and shall, therefore, be used to construe this act, as provided in the State
10 Budget Act, Chapter 143C of the General Statutes, as appropriate, and for these purposes shall
11 be considered a part of this act and, as such, shall be printed as a part of the Session Laws.
12 SECTION 43.2.(b) The budget enacted by the General Assembly is for the
13 maintenance of the various departments, institutions, and other spending agencies of the State
14 for the 2022-2023 fiscal year budget as provided in G.S. 143C-3-5. This budget includes the
15 appropriations of State funds as defined in G.S. 143C-1-1(d)(25).
16 SECTION 43.2.(c) The budget enacted by the General Assembly shall also be
17 interpreted in accordance with G.S. 143C-5-5, the special provisions in this act, and other
18 appropriate legislation. In the event that there is a conflict between the line-item budget certified
19 by the Director of the Budget and the budget enacted by the General Assembly, the budget
20 enacted by the General Assembly shall prevail.
21 SECTION 43.2.(d) Notwithstanding subsection (a) of this section, the following
22 portions of the Committee Report are for reference and do not expand, limit, or define the text of
23 the Committee Report:
24 (1) Summary pages setting forth the enacted budget, the legislative changes, the
25 revised budget, and the related FTE information for a particular budget code
26 and containing no other substantive information.
27 (2) Summary pages setting forth the enacted budget, the legislative changes, the
28 revised budget, and the related FTE information for multiple fund codes
29 within a single budget code and containing no other substantive information.
30
31 REPORT BY FISCAL RESEARCH DIVISION
32 SECTION 43.3. The Fiscal Research Division shall issue a report on budget actions
33 taken by the 2021 Regular Session of the General Assembly in 2022. The report shall be in the
34 form of a revision of the Committee Report described in Section 43.2 of this act pursuant to
35 G.S. 143C-5-5. The Director of the Fiscal Research Division shall send a copy of the report
36 issued pursuant to this section to the Director of the Budget. The report shall be published on the
37 General Assembly's internet website for public access.
38
39 APPROPRIATIONS LIMITATIONS AND DIRECTIONS APPLY
40 SECTION 43.4. Except where expressly repealed or amended by this act, the
41 provisions of any legislation enacted during the 2021 Regular Session of the General Assembly
42 affecting the State budget shall remain in effect.
43
44 MOST TEXT APPLIES ONLY TO THE 2022-2023 FISCAL YEAR
45 SECTION 43.5. Except for statutory changes or other provisions that clearly indicate
46 an intention to have effects beyond the 2022-2023 fiscal year, the textual provisions of this act
47 apply only to funds appropriated for, and activities occurring during, the 2022-2023 fiscal year.
48
49 EFFECT OF HEADINGS

1 SECTION 43.6. The headings to the Parts, Subparts, and sections of this act are a
2 convenience to the reader and are for reference only. The headings do not expand, limit, or define
3 the text of this act, except for effective dates referring to a Part or Subpart.
4
5 SEVERABILITY CLAUSE
6 SECTION 43.7. If any section or provision of this act is declared unconstitutional
7 or invalid by the courts, it does not affect the validity of this act as a whole or any part other than
8 the part so declared to be unconstitutional or invalid.
9
10 EFFECTIVE DATE
11 SECTION 43.8. Except as otherwise provided, this act becomes effective July 1,
12 2022.

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GENERAL ASSEMBLY OF NORTH CAROLINA

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