GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 1004 Short Title: UNC AI & Technology Hubs. (Public) Sponsors: Representatives Hawkins, Lowery, and Reives (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site. Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House April 14, 2025 *H1004 -v-1* A BILL TO BE ENTITLED 1 AN ACT TO APPROPRIAT E FUNDS TO ESTABLISH ARTIFICIAL INTELLIGENCE 2 HUBS AT SELECT CONST ITUENT INSTITUTIONS OF THE UNIVERSITY OF 3 NORTH CAROLINA AND T O APPROPRIATE FUNDS TO ESTABLISH 4 TECHNOLOGY HUBS AT E ACH CONSTITUENT INST ITUTION OF THE 5 UNIVERSITY OF NORTH CAROLINA AND FOR THE NORTH CAROLINA 6 COLLABORATORY TO EST ABLISH A GRANT PROGR AM FOR RESEARCH 7 PROJECTS ON ARTIFICIAL INTELLIGENCE. 8 The General Assembly of North Carolina enacts: 9 10 PART I. ARTIFICIAL INTELLIGENCE HUBS PIL OT 11 SECTION 1.(a) No later than December 1, 2026, the Board of Governors of The 12 University of North Carolina shall select up to eight constituent institutions of The University of 13 North Carolina to serve as Artificial Intelligence Hubs (AI Hubs) in this State. At least one AI 14 Hub shall be one of North Carolina's Public Historically Black Colleges and Universities or North 15 Carolina's Historically American Indian University, the University of North Carolina at 16 Pembroke. Each AI Hub shall convene industry and academia to ensure that artificial intelligence 17 (i) generates economic growth for the State of North Carolina and (ii) protects the rights and 18 liberties of the citizens of this State. 19 SECTION 1.(b) There is appropriated from the General Fund to the Board of 20 Governors of The University of North Carolina for the 2025-2026 fiscal year the following sums 21 for AI Hubs in this State: 22 (1) Sixteen million dollars ($16,000,000) in nonrecurring funds to be allocated 23 equally among constituent institutions selected for an AI Hub pursuant to this 24 section, to establish AI Hubs, including necessary infrastructure. These funds 25 shall not be made available to a selected constituent institution until that 26 institution matches ten percent (10%) of the funds made available pursuant to 27 this subdivision with non-State funds. 28 (2) Eight million dollars ($8,000,000) in recurring funds to be allocated equally 29 among each constituent institution selected for an AI Hub pursuant to this 30 section. These funds shall be used for operational support and personnel 31 needed for the AI Hubs, including to establish an expert in residence position 32 at each AI Hub. 33 34 PART II. TECHNOLOGY HUBS 35 General Assembly Of North Carolina Session 2025 Page 2 House Bill 1004-First Edition SECTION 2.(a) There is appropriated from the General Fund to the Board of 1 Governors of The University of North Carolina the sum of seventy million dollars ($70,000,000) 2 in nonrecurring funds for the 2025-2026 fiscal year to be allocated to each constituent institution 3 to establish a technology hub or support previously designated Artificial Intelligence (AI) Hub 4 at the institution to encourage (i) technology innovation, (ii) workforce upskilling, (iii) 5 entrepreneurship, and (iv) advanced manufacturing. These funds may be used for capital needs, 6 marketing, personnel, programming, support services, local partnerships, and any other purpose 7 necessary to establish the technology hub. Constituent institutions shall report to the Board of 8 Governors on the departments, units, and schools included in the technology hub, and Board of 9 Governors shall report this information to the Joint Legislative Education Oversight Committee 10 no later than February 15, 2026. 11 SECTION 2.(b) There is appropriated from the General Fund to the Board of 12 Governors of The University of North Carolina for allocation to the North Carolina Collaboratory 13 established by G.S. 116-255, the sum of thirty million dollars ($30,000,000) in nonrecurring 14 funds for the 2025-2026 fiscal year to establish a grant fund for research projects on Artificial 15 Intelligence (AI). To qualify for grant funding, a research project must focus on one of the 16 following areas of scope: 17 (1) Involve applied AI research to develop an application in one of the following 18 priority areas: 19 a. Education. 20 b. Workforce development. 21 c. Healthcare. 22 d. Government. 23 (2) Pertain to AI fundamentals and infrastructure by addressing core AI 24 technologies (including, but not limited to, machine learning, natural language 25 processing, and computer vision) and how the technologies contribute to 26 advancing AI infrastructure. 27 (3) Pertain to AI ethics and governance by addressing ethical considerations 28 related to the use of AI and consideration of relevant AI risks and governance 29 frameworks. 30 31 PART III. EFFECTIVE DATE 32 SECTION 3. This act becomes effective July 1, 2025. 33