Bill Summary – FastDemocracy

FILED SENATE
                                                                                        Apr 7, 2021
                         GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                S.B. 713
                                     SESSION 2021           PRINCIPAL CLERK
     S                                                                   D
                             SENATE BILL DRS45375-LUa-63B
     Short Title:   Go Big for Early Childhood Education.                                      (Public)
     Sponsors:      Senators J. Jackson, Foushee, and Waddell (Primary Sponsors).
     Referred to:
                                      A BILL TO BE ENTITLED
 AN ACT TO APPROPRIATE FUNDS TO PROVIDE AN ONGOING, INCREASED SOURCE
     OF FUNDS ABOVE THE BASE BUDGET FOR THE NORTH CAROLINA
     PREKINDERGARTEN (NC PRE-K) PROGRAM AND THE NORTH CAROLINA
     PARTNERSHIP FOR CHILDREN, INC., TO INCREASE THE REIMBURSEMENT
     RATE FOR NC PRE-K SLOTS BY THREE PERCENT FOR THE 2021-2022 FISCAL
     YEAR, AND TO PROVIDE A TAX CREDIT TO CERTAIN EARLY EDUCATION
     TEACHERS AND DIRECTORS.
 The General Assembly of North Carolina enacts:
             SECTION 1.(a) Notwithstanding G.S. 143B-168.10C, there is appropriated from the
 General Fund to the Department of Health and Human Services, Division of Child Development
 and Early Education, the following amounts for each fiscal year for five years, and subsequent
 fiscal years thereafter, to increase funding for the North Carolina Prekindergarten (NC Pre-K)
 program as follows:
                            Fiscal Year                           Appropriation
                            2021-2022                             $87,877,017
                            2022-2023                             $104,582,345
                            2023-2024                             $121,287,673
                            2024-2025                             $137,991,673
                            2025-2026 and each                    $154,695,673
                            subsequent fiscal year thereafter
             When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year
 specified in this subsection, the Director of the Budget shall include the appropriated amount
 specified in this section for that fiscal year.
             SECTION 1.(b) For the 2021-2022 fiscal year, the Department of Health and Human
 Services, Division of Child Development and Early Education, shall increase the per-slot
 reimbursement rate for the NC Prekindergarten (NC Pre-K) program by three percent (3%). The
 Division of Child Development and Early Education shall use the average amount paid per
 facility type in the 2020-2021 fiscal year to determine the base rate before applying the three
 percent (3%) increase in the 2021-2022 fiscal year.
             SECTION 2.(a) There is appropriated from the General Fund to the Department of
 Health and Human Services, Division of Child Development and Early Education, the following
 amounts each fiscal year for five years to increase funding for the North Carolina Partnership for
 Children, Inc., by the sum of twenty million dollars ($20,000,000), as follows:
                            Fiscal Year                      Appropriation
                            2021-2022                        $167,013,453
                                 *DRS45375-LUa-63B*
     General Assembly Of North Carolina                                                    Session 2021
                             2022-2023                         $187,013,453
                             2023-2024                         $207,013,453
                             2024-2025                         $227,013,453
                             2025-2026                         $247,013,453
              SECTION 2.(b) For the 2026-2027 fiscal year and each subsequent fiscal year
 thereafter, there is appropriated from the General Fund to the Division of Child Development
 and Early Education the sum of two hundred sixty-seven million thirteen thousand four hundred
 fifty-three dollars ($267,013,453) to be used for the North Carolina Partnership for Children, Inc.
              SECTION 2.(c) When developing the base budget, as defined by G.S. 143C-1-1, for
 each fiscal year specified in this section, the Director of the Budget shall include the appropriated
 amount specified in this section for that fiscal year.
              SECTION 3. Part 2 of Article 4 of Subchapter I of Chapter 105 of the General
 Statutes is amended by adding a new section to read:
 "§ 105-153.11. Credit for early education professionals.
      (a)     Credit. – A taxpayer who is an eligible early education teacher or director is allowed
 a credit against the tax imposed by this Part equal to the sum of the highest applicable
 sub-subdivision of each of the following:
              (1)     For years of service uninterrupted by more than six months:
                      a.      One year of service or more, but less than three years of service: five
                              hundred dollars ($500.00).
                      b.      Three years of service or more, but less than five years of service: one
                              thousand dollars ($1,000).
                      c.      Five years of service or more, but less than seven years of service: one
                              thousand five hundred dollars ($1,500).
                      d.      Seven years of service or more: two thousand dollars ($2,000).
              (2)     For level of professional educational achievement:
                      a.      For eligible child care staff who meets one or more of the
                              sub-sub-subdivisions listed in this sub-subdivision: five hundred
                              dollars ($500.00).
                              1.      Has completed 12 to 18 semester credit hours for which an
                                      Early Childhood Certificate issued by the North Carolina
                                      Community College System was awarded.
                              2.      Has completed at least 12 semester hours of coursework
                                      focused on children aged birth to five years old.
                              3.      Has completed at least 18 semester hours of general education
                                      coursework and at least nine additional semester hours of
                                      coursework focused on children aged birth to five years old.
                      b.      For eligible child care staff who meets one or more of the
                              sub-sub-subdivisions listed in this sub-subdivision: one thousand
                              dollars ($1,000).
                              1.      Has earned an associate degree in Early Childhood or in
                                      another concentration, provided the concentration includes at
                                      least 24 semester hours of coursework focused on children
                                      aged birth to five years old.
                              2.      Has completed at least 60 semester hours of general education
                                      coursework for purposes of obtaining a bachelor's degree,
                                      provided the completed semester hours include at least 12
                                      semester hours of coursework focused on children aged birth
                                      to five years old.
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     General Assembly Of North Carolina                                                       Session 2021
                             3.        Has earned a bachelor's degree, provided the coursework
                                       includes at least six semester hours of coursework focused on
                                       children aged birth to five years old.
                      c.       For eligible child care staff who has earned a bachelor's degree in Early
                               Childhood or in another concentration, provided the concentration
                               includes at least 24 hours of coursework focused on children aged birth
                               to five years old: one thousand five hundred dollars ($1,500).
                      d.       For eligible child care staff who meets one or more of the
                               sub-sub-subdivisions listed in this sub-subdivision: two thousand
                               dollars ($2,000).
                               1.      Has a current Continuing Birth-Kindergarten license.
                               2.      Has either a current Professional Educator's Initial License or
                                       a current Professional Educator's Continuing License issued by
                                       the North Carolina Department of Public Instruction in an area
                                       that includes Birth-Kindergarten.
                               3.      Has earned a degree, other than one listed in another
                                       sub-subdivision of this subdivision, provided the coursework
                                       includes at least 18 semester hours of coursework focused on
                                       children aged birth to five years old.
     (b)      Definitions. – The following definitions apply in this section:
              (1)     Eligible child care director. – A child care administrator, as defined in
                      G.S. 110-86.
              (2)     Eligible child care facility. – A child care facility, as defined in G.S. 110-86.
              (3)     Eligible child care staff. – An individual employed at an eligible child care
                      facility as a director, lead teacher, teacher, or teacher assistant, as those terms
                      are defined in G.S. 110-86.
              (4)     General education coursework. – Courses from the areas of humanities, fine
                      arts, social sciences, behavioral sciences, natural sciences, and mathematics.
     (c)      Credit Refundable. – If the credit allowed by this section exceeds the amount of tax
 imposed by this Part for the taxable year reduced by the sum of all credits allowable, the Secretary
 must refund the excess to the taxpayer. The refundable excess is governed by the provisions
 governing a refund of an overpayment by the taxpayer of the tax imposed in this Part. In
 computing the amount of tax against which multiple credits are allowed, nonrefundable credits
 are subtracted before refundable credits.
     (d)      Sunset. – This section is repealed effective for taxable years beginning on or after
 January 1, 2026."
              SECTION 4. Sections 1 and 2 of this act become effective July 1, 2021. Section 3
 of this act is effective for taxable years beginning on or after January 1, 2022. The remainder of
 this act is effective when it becomes law.
     DRS45375-LUa-63B                                                                                Page 3