H.B. 976
GENERAL ASSEMBLY OF NORTH CAROLINA
May 1, 2024
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40544-NGxfa-96
Short Title: Workforce Development Program. (Public)
Sponsors: Representative Reives.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ESTABLISH THE COMMUNITY COLLEGE STATE ENDOWMENT TRUST
3 FUND, TO REQUIRE THE DEPARTMENT OF COMMERCE TO SHARE
4 EMPLOYMENT OUTCOME DATA WITH COMMUNITY COLLEGES, TO PROVIDE
5 FUNDING FOR THE EXPANSION OR CREATION OF NEW COOPERATIVE
6 INNOVATIVE HIGH SCHOOLS IN UNDERSERVED COUNTIES, AND TO
7 ESTABLISH A SHORT-TIME COMPENSATION PROGRAM.
8 The General Assembly of North Carolina enacts:
9
10 PART I. COMMUNITY COLLEGE STATE ENDOWMENT TRUST FUND
11 SECTION 1.(a) Chapter 115D of the General Statutes is amended by adding a new
12 Article to read:
13 "Article 10.
14 "Community College System Trust Funds.
15 "§ 115D-110. Community College State Endowment Trust Fund and grant program.
16 (a) Workforce Development Trust Fund. – There is established a nonreverting special
17 fund in the North Carolina Community College System entitled the Community College State
18 Endowment Trust Fund (CCSETF) to provide grants to community colleges within the North
19 Carolina Community College System (NCCCS). Grants from the CCSETF shall be for programs
20 to improve student recruitment, instructor recruitment or retention, or fund new programs to
21 respond to local workforce demands. The CCSETF shall consist of funds appropriated to, or
22 otherwise received by, the CCSETF and any interest accrued thereon. Moneys in the CCSETF
23 shall only be used for distribution of grants pursuant to this section.
24 (b) Establishment of Community College State Endowment Grant Program. – The State
25 Board of Community Colleges shall administer a grant program for the purposes described in
26 subsection (a) of this section. The State Board shall make the application available to all
27 community colleges in the State by August 1, 2024, and March 15 each year thereafter. Grants
28 may be awarded on a rolling basis, so long as grants are awarded pursuant to the distribution
29 requirements in subsection (d) of this section.
30 (c) Distribution of Grants from CCSETF. – Grants shall be distributed on a competitive
31 basis. Any community college within the NCCCS may apply for grants from the CCSETF.
32 Criteria for selection of grant proposals shall include at least the following:
33 (1) The number of students that will be served by the actions included in the grant
34 proposal.
35 (2) The number of prospective students that are expected to be enrolled as a result
36 of the actions included in the grant proposal.
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1 (3) Whether or not the grant proposal has been endorsed by the college's business
2 advisory group.
3 (4) The median wage of the college or program covered by the grant proposal.
4 (d) Distribution of Funds. – For each year that grants are awarded from the CCSETF, the
5 distribution of funds from the CCSETF shall be as follows:
6 (1) At least thirty percent (30%) of grant funds shall be for student recruitment
7 initiatives.
8 (2) At least thirty percent (30%) of grant funds shall be for instructor recruitment
9 and retention.
10 (3) At least thirty percent (30%) of grant funds shall be for new programs to
11 respond to local workforce demands.
12 (e) Administrative Costs. – The State Board may retain up to two and one-half percent
13 (2.5%) of the value of funds distributed from the CCSETF each fiscal year for costs associated
14 with administering the grant program."
15 SECTION 1.(b) There is appropriated from the General Fund to the Community
16 College System Office the sum of five hundred eighty million dollars ($580,000,000) in
17 nonrecurring funds for the creation of the Community College State Endowment Trust Fund.
18
19 PART II. EMPLOYMENT OUTCOME DATA
20 SECTION 2. Article 7 of Chapter 115D of the General Statutes is amended by
21 adding a new section to read:
22 "§ 115D-82. Employment outcome data.
23 Upon request, to the extent allowed under federal law, the Department of Commerce shall
24 share employment outcome data with the Community College System Office."
25
26 PART III. COOPERATIVE INNOVATIVE HIGH SCHOOL FUNDING EXPANSION
27 SECTION 3.(a) Part 9 of Article 16 of Chapter 115C of the General Statutes is
28 amended by adding a new section to read:
29 "§ 115C-238.54A. Cooperative innovative high schools – funding based on county
30 development tier designation.
31 (a) Development Tier One Areas. – The Department shall allocate the following amounts
32 from the cooperative innovative high school supplemental allotment to a local school
33 administrative unit located in a development tier one area as defined in G.S. 143B-437.08 with a
34 cooperative innovative high school that was approved by the State Board of Education pursuant
35 to G.S. 115C-238.51A(c):
36 (1) The sum of seven hundred forty thousand dollars ($740,000) in recurring
37 funds for the first cooperative innovative high school approved by the State
38 Board.
39 (2) The sum of three hundred seventy thousand dollars ($370,000) in recurring
40 funds for each subsequent cooperative innovative high school approved by the
41 State Board.
42 (3) For a virtual cooperative innovative high school, the Department shall allocate
43 the sum of two hundred thousand dollars ($200,000) in recurring funds from
44 the cooperative innovative high school supplemental allotment to the local
45 school administrative unit for each fiscal year.
46 (4) For the Northeast Regional School of Biotechnology and Agriscience, the
47 Department shall allocate the sum of three hundred ten thousand dollars
48 ($310,000) in recurring funds from the regional school supplemental
49 allotment for the school for each fiscal year.
50 (b) Development Tier Two Areas. – The Department shall allocate the following amounts
51 from the cooperative innovative high school supplemental allotment to a local school
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1 administrative unit located in a development tier two area as defined in G.S. 143B-437.08 with
2 a cooperative innovative high school that was approved by the State Board of Education pursuant
3 to G.S. 115C-238.51A(c):
4 (1) The sum of five hundred ninety thousand dollars ($590,000) in recurring funds
5 for the first cooperative innovative high school approved by the State Board.
6 (2) The sum of two hundred ninety-five thousand dollars ($295,000) in recurring
7 funds for each subsequent cooperative innovative high school approved by the
8 State Board.
9 (3) For a virtual cooperative innovative high school, the Department shall allocate
10 the sum of two hundred thousand dollars ($200,000) in recurring funds from
11 the cooperative innovative high school supplemental allotment to the local
12 school administrative unit for each fiscal year.
13 (c) Development Tier Three Areas. – The Department shall allocate the following
14 amounts from the cooperative innovative high school supplemental allotment to a local school
15 administrative unit located in a development tier three area as defined in G.S. 143B-437.08 with
16 a cooperative innovative high school that was approved by the State Board of Education pursuant
17 to G.S. 115C-238.51A(c):
18 (1) The sum of five hundred fifty thousand dollars ($550,000) in recurring funds
19 for the first cooperative innovative high school approved by the State Board.
20 (2) The sum of two hundred seventy-five thousand dollars ($275,000) in recurring
21 funds for each subsequent cooperative innovative high school approved by the
22 State Board.
23 (3) For a virtual cooperative innovative high school, the Department shall allocate
24 the sum of two hundred thousand dollars ($200,000) in recurring funds from
25 the cooperative innovative high school supplemental allotment to the local
26 school administrative unit for each fiscal year.
27 (d) Applicability of Funds Allocated Pursuant to this Section. – The allotment of funds
28 to local school administrative units pursuant to the provisions of this section shall include a
29 cooperative innovative high school approved by the State Board of Education pursuant to
30 G.S. 115C-238.51A(c) since July 1, 2015, that is operated by a local school administrative unit
31 but that has not received the cooperative innovative high school allotment in a prior fiscal year.
32 Funds shall not be allocated to local school administrative units for cooperative innovative high
33 schools approved by the State Board pursuant to G.S. 115C-238.51A(b)."
34 SECTION 3.(b) There is appropriated from the General Fund to the Department of
35 Public Instruction the sum of forty million dollars ($40,000,000) in recurring funds for the
36 expansion of existing cooperative innovative high schools or the establishment of new
37 cooperative innovative high schools in underserved counties.
38
39 PART IV. SHORT-TIME COMPENSATION PROGRAM
40 SECTION 4.(a) Chapter 96 of the General Statutes is amended by adding a new
41 Article to read:
42 "Article 6.
43 "Short-Time Compensation.
44 "§ 96-45. Short-time compensation.
45 (a) Definitions. – The following definitions apply in this section:
46 (1) Affected unit. – A specified plant, department, shift, or other definable unit of
47 two or more employees designated by the employer to participate in a
48 short-time compensation plan.
49 (2) Employer-sponsored training. – A training component sponsored by an
50 employer to improve the skills of the employer's workers.
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1 (3) Normal weekly hours of work. – The number of hours in a week that an
2 individual would regularly work for the short-time compensation employer,
3 not to exceed 40 hours, excluding overtime.
4 (4) Short-time compensation benefits. – Benefits payable to individuals in an
5 affected unit under an approved short-time compensation plan.
6 (5) Short-time compensation employer. – An employer with a short-time
7 compensation plan in effect.
8 (6) Short-time compensation plan or plan. – An employer's written plan for
9 reducing unemployment under which an affected unit shares the work
10 remaining after its normal weekly hours of work are reduced.
11 (b) Approval of Plans. – An employer wishing to participate in the short-time
12 compensation program must submit a signed, written, short-time compensation plan to the
13 Division. The Division shall approve the plan if all of the following criteria are met:
14 (1) The plan applies to and identifies each specific affected unit.
15 (2) The individuals in the affected unit are identified by name and social security
16 number.
17 (3) The normal weekly hours of work for individuals in the affected unit are
18 reduced by at least ten percent (10%) and by not more than forty percent
19 (40%).
20 (4) The plan includes a certified statement by the employer that the aggregate
21 reduction in work hours is in lieu of layoffs that would affect at least ten
22 percent (10%) of the employees in the affected unit and that would have
23 resulted in an equivalent reduction in work hours.
24 (5) The plan applies to at least ten percent (10%) of the employees in the affected
25 unit.
26 (6) The plan is approved in writing by the collective bargaining agent for each
27 collective bargaining agreement covering any individual in the affected unit.
28 (7) The plan does not serve as a subsidy to seasonal employers during the
29 off-season or as a subsidy to employers who traditionally use part-time
30 employees.
31 (8) The plan certifies that, if the employer provides fringe benefits to any
32 employee whose workweek is reduced under the program, the fringe benefits
33 will continue to be provided to the employee participating in the short-time
34 compensation program under the same terms and conditions as though the
35 workweek of such employee had not been reduced or to the same extent as
36 other employees not participating in the short-time compensation program. As
37 used in this subdivision, the term "fringe benefits" includes, but is not limited
38 to, health insurance, retirement benefits under defined benefit pension plans
39 as defined in the Employee Retirement Income Security Act of 1974, 29
40 U.S.C. § 1002(35), contributions under a defined contribution plan as defined
41 in section 414(i) of the Internal Revenue Code, paid vacation and holidays,
42 and sick leave.
43 (9) The plan describes the manner in which the requirements of this subsection
44 will be implemented, including a plan for giving notice, if feasible, to an
45 employee whose workweek is to be reduced, together with an estimate of the
46 number of layoffs that would have occurred absent the ability to participate in
47 short-time compensation.
48 (10) The terms of the employer's written plan and implementation are consistent
49 with employer obligations under applicable federal laws and laws of this State.
50 (11) The employer has filed all quarterly reports and other reports required under
51 this Chapter and has paid all obligation assessments, contributions,
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1 reimbursements in lieu of contributions, interest, and penalties due through
2 the date of the employer's application.
3 The Division shall approve or disapprove a short-time compensation plan in writing within
4 15 days after its receipt. If the plan is denied, the Division shall notify the employer of the reasons
5 for disapproval. A plan takes effect on the date of its approval by the Division and expires at the
6 end of the twelfth full calendar month after its effective date.
7 (c) Revocation of Approval. – The Division shall periodically monitor the employer's
8 plan compliance and operations. Plan approval may be revoked based on good cause, including
9 the failure to comply with assurances provided in the plan such as that the aggregate reduction
10 in hours is in lieu of layoffs.
11 (d) Eligibility Requirements for Short-Time Compensation Benefits. – Except as
12 provided in this subsection, an individual is eligible to receive short-time compensation benefits
13 for any week only if the individual complies with this Chapter and the Division finds that (i) the
14 individual is employed as a member of an affected unit in an approved plan that was approved
15 before the week and is in effect for the week, (ii) the individual is able to work and is available
16 for additional hours of work or for full-time work with the short-time employer, and (iii) the
17 normal weekly hours of work of the individual are reduced by at least ten percent (10%) but not
18 by more than forty percent (40%), with a corresponding reduction in wages.
19 The Division may not deny short-time compensation benefits to an individual who is
20 otherwise eligible for these benefits for any week by reason of the application of any provision
21 of this Chapter relating to avai