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North Carolina House Bill H574

North Carolina 2025-2026 Regular Session

North Carolina House Bill H574 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 574
3+H D
4+HOUSE BILL DRH10249-MC-43
5+
56
67
78 Short Title: Workforce Development Pilot Project. (Public)
8-Sponsors: Representatives Huneycutt, K. Hall, Chesser, and Rhyne (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Commerce and Economic Development, if favorable, Rules, Calendar, and
11-Operations of the House
12-April 1, 2025
13-*H574 -v-1*
9+Sponsors: Representative Huneycutt.
10+Referred to:
11+
12+*DRH10249 -MC-43*
1413 A BILL TO BE ENTITLED 1
1514 AN ACT TO ESTABLISH A WORKFORCE DEVELOPMENT PILOT PROJECT. 2
1615 The General Assembly of North Carolina enacts: 3
1716 SECTION 1.(a) Purpose. – The purpose of this act is to provide a framework for 4
1817 funds to the Office of State Budget and Management to be allocated to the North Carolina 5
1918 Workforce Development Coalition (NCWDC), a nonprofit organization for the purpose of 6
2019 providing grants to employers to encourage employer-sponsored training with a focus on 7
2120 increasing job creation, reducing employee turnover, improving employee wages, and upgrading 8
2221 the skills of workers in their occupation. NCWDC will identify and prioritize industries and 9
2322 skillsets (i) for which training and curricula are lacking at community colleges due to insufficient 10
2423 demand despite an ongoing societal or community need or (ii) for which significant portions of 11
2524 training occur on-the-job without formalized study programs at institutions of higher education. 12
2625 SECTION 1.(b) Definitions. – The following definitions apply in this act: 13
2726 (1) Eligible employer. – A North Carolina-based business, including nonprofit 14
2827 organizations, that (i) has at least 20 but not more than 1,500 employees 15
2928 employed in the State and (ii) meets all of the following requirements: 16
3029 a. Has been operating for a continuous period of at least 365 days. 17
3130 b. Is registered and in good standing with the North Carolina 18
3231 Unemployment Insurance program. 19
3332 c. Is registered and in good standing with the North Carolina Workers' 20
3433 Compensation program. 21
3534 d. Is registered and in good standing with the North Carolina Secretary 22
3635 of State's office, if required by law. 23
3736 (2) Eligible training programs. – A training program (i) offered through an 24
3837 eligible employer, association, or educational institution and (ii) for which the 25
3938 eligible employer demonstrates the training directly relates to the trainee's 26
4039 occupation or work responsibilities and will result in one or more of the 27
4140 following: 28
4241 a. Create new jobs. 29
4342 b. Reduce employee turnover. 30
4443 c. Enhance employee effectiveness. 31
4544 d. Improve employee wages. 32
46-e. Upgrade employee skillsets. 33 General Assembly Of North Carolina Session 2025
47-Page 2 House Bill 574-First Edition
48-(3) Employee. – An individual (i) employed by an eligible employer, (ii) working 1
49-in this State for at least 30 hours per week, and (iii) for whom the eligible 2
50-employer has applied to participate in an eligible training program. The term 3
51-includes interns and apprentices, paid or unpaid, who work for an eligible 4
52-employer at least 30 hours per week. 5
53-(4) Trainee. – An employee participating in an eligible training program. 6
54-(5) Training costs. – Costs of an eligible training program for tuition; registration; 7
55-class fees; participant fees; class materials directly related to the training; 8
56-instructor fees, including in-house trainers; assessments, testing, and fees for 9
57-license or certification exams that are administered as part of the training 10
58-program. The term does not include expenses incurred for trainee wages, 11
59-onboarding costs for new employees, fringe benefits, lodging and meals, 12
60-capital construction, membership fees, license fees, subscription fees, 13
61-employer administrative fees, purchased, rented, or leased equipment, 14
62-including computer hardware or software, and expenses related to preparing 15
63-training grant applications. 16
64-SECTION 1.(c) Grants. – An eligible employer may apply for a grant equal to the 17
65-lesser of (i) fifty percent (50%) of the eligible training costs or (ii) two thousand dollars ($2,000) 18
66-per trainee, regardless of the number of business entities the trainee works for. The maximum 19
67-grant an eligible employer may receive in a calendar year is forty thousand dollars ($40,000) 20
68-minus any other State or federal grants for the same training received in that calendar year. 21
69-SECTION 1.(d) Application; Reimbursement. – An application for a grant must be 22
70-submitted to NCWDC at least 45 days prior to the start of training. NCWDC shall distribute 23
71-funds to eligible employers who apply and qualify based on a first-come, first-served basis until 24
72-funds are exhausted. Grant funds shall be paid to an eligible employer only after the eligible 25
73-employer has submitted a request for reimbursement meeting the following requirements: 26
74-(1) The request for reimbursement is submitted to NCWDC no later than 60 days 27
75-following completion of training. 28
76-(2) The request for reimbursement provides all information required by NCWDC 29
77-to substantiate the training costs on which the application for grant was based. 30
78-(3) Each trainee to which the request applies has (i) completed the training and 31
79-(ii) remained an employee of the eligible employer for the 45-day period 32
80-following the date of completion of the training, unless activated for military 33
81-service or deceased. 34
82-SECTION 1.(e) Reporting. – Each eligible employer shall maintain, and make 35
83-available to NCWDC, appropriate employee records of eligibility criteria for employment and 36
84-training as required by NCWDC to verify compliance with the requirements of this section and 37
85-substantiate the amount of reimbursement based on the grant awarded. Beginning July 1, 2026, 38
86-and annually thereafter, NCWDC shall report to the Joint Legislative Economic Development 39
87-and Global Engagement Oversight Committee on the number and amount of grants awarded, the 40
88-recipients of the grants, the number of trainees participating as a result of the grants awarded, the 41
89-types of training offered as a result of the grants, and any information reported as to trainees 42
90-retained in employment as a result of the training. 43
91-SECTION 1.(f) Administration. – NCWDC may use up to five percent (5%) of the 44
92-funds available for the program for administrative expenses and marketing of the program, 45
93-including developing a website and collateral materials to inform employers of the program, 46
94-email and social media campaigns, and direct outreach. 47
95-SECTION 2. This act is effective when it becomes law. 48
45+e. Upgrade employee skillsets. 33
46+(3) Employee. – An individual (i) employed by an eligible employer, (ii) working 34
47+in this State for at least 30 hours per week, and (iii) for whom the eligible 35
48+employer has applied to participate in an eligible training program. The term 36
49+H.B. 574
50+Mar 27, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH10249-MC-43
53+includes interns and apprentices, paid or unpaid, who work for an eligible 1
54+employer at least 30 hours per week. 2
55+(4) Trainee. – An employee participating in an eligible training program. 3
56+(5) Training costs. – Costs of an eligible training program for tuition; registration; 4
57+class fees; participant fees; class materials directly related to the training; 5
58+instructor fees, including in-house trainers; assessments, testing, and fees for 6
59+license or certification exams that are administered as part of the training 7
60+program. The term does not include expenses incurred for trainee wages, 8
61+onboarding costs for new employees, fringe benefits, lodging and meals, 9
62+capital construction, membership fees, license fees, subscription fees, 10
63+employer administrative fees, purchased, rented, or leased equipment, 11
64+including computer hardware or software, and expenses related to preparing 12
65+training grant applications. 13
66+SECTION 1.(c) Grants. – An eligible employer may apply for a grant equal to the 14
67+lesser of (i) fifty percent (50%) of the eligible training costs or (ii) two thousand dollars ($2,000) 15
68+per trainee, regardless of the number of business entities the trainee works for. The maximum 16
69+grant an eligible employer may receive in a calendar year is forty thousand dollars ($40,000) 17
70+minus any other State or federal grants for the same training received in that calendar year. 18
71+SECTION 1.(d) Application; Reimbursement. – An application for a grant must be 19
72+submitted to NCWDC at least 45 days prior to the start of training. NCWDC shall distribute 20
73+funds to eligible employers who apply and qualify based on a first-come, first-served basis until 21
74+funds are exhausted. Grant funds shall be paid to an eligible employer only after the eligible 22
75+employer has submitted a request for reimbursement meeting the following requirements: 23
76+(1) The request for reimbursement is submitted to NCWDC no later than 60 days 24
77+following completion of training. 25
78+(2) The request for reimbursement provides all information required by NCWDC 26
79+to substantiate the training costs on which the application for grant was based. 27
80+(3) Each trainee to which the request applies has (i) completed the training and 28
81+(ii) remained an employee of the eligible employer for the 45-day period 29
82+following the date of completion of the training, unless activated for military 30
83+service or deceased. 31
84+SECTION 1.(e) Reporting. – Each eligible employer shall maintain, and make 32
85+available to NCWDC, appropriate employee records of eligibility criteria for employment and 33
86+training as required by NCWDC to verify compliance with the requirements of this section and 34
87+substantiate the amount of reimbursement based on the grant awarded. Beginning July 1, 2026, 35
88+and annually thereafter, NCWDC shall report to the Joint Legislative Economic Development 36
89+and Global Engagement Oversight Committee on the number and amount of grants awarded, the 37
90+recipients of the grants, the number of trainees participating as a result of the grants awarded, the 38
91+types of training offered as a result of the grants, and any information reported as to trainees 39
92+retained in employment as a result of the training. 40
93+SECTION 1.(f) Administration. – NCWDC may use up to five percent (5%) of the 41
94+funds available for the program for administrative expenses and marketing of the program, 42
95+including developing a website and collateral materials to inform employers of the program, 43
96+email and social media campaigns, and direct outreach. 44
97+SECTION 2. This act is effective when it becomes law. 45