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North Carolina House Bill H883

North Carolina 2025-2026 Regular Session

North Carolina House Bill H883 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 883
3+H D
4+HOUSE BILL DRH40470-NGa-81
5+
56
67
78 Short Title: Support Students with Disabilities Act. (Public)
8-Sponsors: Representatives Balkcom, Cotham, Biggs, and Arp (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Education - K-12, if favorable, Appropriations, if favorable, Rules, Calendar, and
11-Operations of the House
12-April 10, 2025
13-*H883 -v-1*
9+Sponsors: Representative Balkcom.
10+Referred to:
11+
12+*DRH40470 -NGa-81*
1413 A BILL TO BE ENTITLED 1
1514 AN ACT TO ESTABLISH A PROGRAM FOR LOCAL SCHOOL ADMINISTRATIVE 2
1615 UNITS TO APPLY TO THE DEPARTMENT OF PUBLIC INSTRUCTION FOR 3
1716 ONGOING EXTRAORDINARY COSTS OF CHILDREN WITH DISABILITIES, 4
1817 INCLUDING FOR PLACEMENT OF STUDENTS IN SETTINGS OUTSIDE THE 5
1918 SCHOOL SYSTEM TO REDUCE THE USE OF MODIFIED DAY, HOMEBOUND, AND 6
2019 HOSPITALIZED PLACEMENTS, AND TO REQUIRE AN ANNUAL REPORT ON THE 7
2120 MONITORING OF STUDENTS IN HOMEBOUND, MODIFIED DAY, AND HOSPITAL 8
2221 PLACEMENTS. 9
2322 The General Assembly of North Carolina enacts: 10
2423 SECTION 1.(a) Program Established. – Beginning with the 2025-2026 fiscal year, 11
2524 the Department of Public Instruction shall establish a grant program for local school 12
2625 administrative units to apply for funds from the Special State Reserve Fund (SSRF) for children 13
2726 with disabilities for the purpose of covering the extraordinary costs of certain students with 14
2827 disabilities, including costs associated with the placement of students in private schools with 15
2928 approved nonpublic education programs providing special education in accordance with a 16
3029 student's individualized education program (IEP). The grant program shall provide funds for 17
3130 students with disabilities on an ongoing basis according to the students' IEPs. The grant program 18
3231 established by this act shall be administered separately from the grant program funded from the 19
3332 SSRF available to local school administrative units for high costs related to emergency situations 20
3433 for children with disabilities in a school year. Funds administered pursuant to this act shall 21
3534 supplement and not supplant existing federal, State, and local funding for children with 22
3635 disabilities. 23
3736 SECTION 1.(b) Applications. – A local school administrative unit may apply for 24
3837 grant funds for a student with disabilities served by the unit for extraordinary costs associated 25
3938 with services provided to the student, including for a placement in a private school that has an 26
4039 approved nonpublic education program providing special education in accordance with a 27
4140 student's IEP. To be eligible for a grant, the local school administrative unit must demonstrate 28
4241 that the total cost of the services equals or exceeds four times the State average per pupil 29
4342 expenditure for children with disabilities in the prior fiscal year. The local school administrative 30
4443 unit shall provide documentation to the Department of Public Instruction to support the funding 31
4544 request. The student's IEP must support the determination of the services, including if the 32
4645 placement of the student is at a private school. Grant funds shall be student-specific and follow 33
47-the student for special education and related services provided within the State. The Department 34 General Assembly Of North Carolina Session 2025
48-Page 2 House Bill 883-First Edition
49-shall require documentation for renewal of the grant for each school year with a request for funds 1
50-for the student. The Department shall reimburse seventy-five percent (75%) of the extraordinary 2
51-costs and disburse funds in quarterly amounts to providers on an approved list from the 3
52-Department. 4
53-For the purposes of this act, extraordinary costs shall only include costs directly 5
54-attributable to providing the special education services on the student's IEP, such as salary of 6
55-educational personnel; salary of related services personnel; costs for specialized books, materials, 7
56-or equipment; tuition costs; and consultant costs, if directly attributable to the student's 8
57-instructional program. Extraordinary costs shall not include administrative or overhead costs, the 9
58-costs of adapting classrooms or materials that are used by more than one student, nor the costs 10
59-associated with evaluation, development of the IEP, or service coordination for the student with 11
60-disabilities. 12
61-SECTION 1.(c) Oversight. – The Department of Public Instruction shall ensure that, 13
62-if a student who is covered by grant funds is placed in a private school that has an approved 14
63-nonpublic education program providing special education in accordance with a student's IEP, the 15
64-school is approved by the Department as adhering to State and federal laws governing education 16
65-services for students with disabilities and State and federal laws governing seclusion and restraint 17
66-of students. The student's local school administrative unit shall remain legally responsible for 18
67-ensuring the student is receiving a free appropriate public education in the least restrictive 19
68-environment while the student is placed in the private school, as required by State and federal 20
69-laws governing education services for students with disabilities, and the unit shall conduct an 21
70-annual review of the student's IEP and any interim reviews requested by the student's parent or 22
71-legal guardian for purposes of educational decision making in accordance with federal and State 23
72-laws. Prior to approving a renewal of the grant for a particular student, the Department shall 24
73-ensure that the annual review of the student's IEP has been completed and the student's parent or 25
74-legal guardian, for purposes of educational decision making, has received the notice of procedural 26
75-safeguards required by State and federal laws governing education services for students with 27
76-disabilities. 28
77-SECTION 1.(d) Appropriation. – There is appropriated from the General Fund to 29
78-the Special State Reserve Fund the sum of one million dollars ($1,000,000) in recurring funds 30
79-for the 2025-2026 fiscal year for the Department of Public Instruction to implement the grant 31
80-program established pursuant to this section. 32
81-SECTION 1.(e) Report. – By March 15, 2026, the Department of Public Instruction 33
82-shall report to the Joint Legislative Education Oversight Committee the number of grant 34
83-applications for the 2025-2026 school year, the amount of grant funds awarded, the types of 35
84-out-of-school system placements and service providers, and the type of extraordinary costs 36
85-reimbursed. 37
86-SECTION 2.(a) G.S. 115C-107.5 reads as rewritten: 38
87-"§ 115C-107.5. Annual reports. 39
88-The State Board shall report no later than October 15 of each year to the Joint Legislative 40
89-Education Oversight Committee on the implementation of this Article and the educational 41
90-performance of children with disabilities. The report may be filed electronically. Each annual 42
91-report shall include the following information: 43
92-… 44
93-(4) A summary analysis of the following data to be monitored and collected by 45
94-the Department of Public Instruction on students with disabilities in each local 46
95-school administrative unit on a monthly basis: 47
96-a. The number of new and continued homebound placements. 48
97-b. The number of new and continued modified day placements. 49
98-c. The number of new and continued Home/Hospital, Separate Schools, 50
99-and Residential placements. 51 General Assembly Of North Carolina Session 2025
100-House Bill 883-First Edition Page 3
101-d. The number of new and continued psychiatric residential treatment 1
102-facility placements." 2
103-SECTION 2.(b) The State Board of Education shall submit the report required under 3
104-G.S. 115C-107.5(4), as enacted by this act, beginning October 15, 2026. 4
105-SECTION 3. This act becomes effective July 1, 2025. 5
46+the student for special education and related services provided within the State. The Department 34
47+shall require documentation for renewal of the grant for each school year with a request for funds 35
48+for the student. The Department shall reimburse seventy-five percent (75%) of the extraordinary 36
49+H.B. 883
50+Apr 9, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH40470-NGa-81
53+costs and disburse funds in quarterly amounts to providers on an approved list from the 1
54+Department. 2
55+For the purposes of this act, extraordinary costs shall only include costs directly 3
56+attributable to providing the special education services on the student's IEP, such as salary of 4
57+educational personnel; salary of related services personnel; costs for specialized books, materials, 5
58+or equipment; tuition costs; and consultant costs, if directly attributable to the student's 6
59+instructional program. Extraordinary costs shall not include administrative or overhead costs, the 7
60+costs of adapting classrooms or materials that are used by more than one student, nor the costs 8
61+associated with evaluation, development of the IEP, or service coordination for the student with 9
62+disabilities. 10
63+SECTION 1.(c) Oversight. – The Department of Public Instruction shall ensure that, 11
64+if a student who is covered by grant funds is placed in a private school that has an approved 12
65+nonpublic education program providing special education in accordance with a student's IEP, the 13
66+school is approved by the Department as adhering to State and federal laws governing education 14
67+services for students with disabilities and State and federal laws governing seclusion and restraint 15
68+of students. The student's local school administrative unit shall remain legally responsible for 16
69+ensuring the student is receiving a free appropriate public education in the least restrictive 17
70+environment while the student is placed in the private school, as required by State and federal 18
71+laws governing education services for students with disabilities, and the unit shall conduct an 19
72+annual review of the student's IEP and any interim reviews requested by the student's parent or 20
73+legal guardian for purposes of educational decision making in accordance with federal and State 21
74+laws. Prior to approving a renewal of the grant for a particular student, the Department shall 22
75+ensure that the annual review of the student's IEP has been completed and the student's parent or 23
76+legal guardian, for purposes of educational decision making, has received the notice of procedural 24
77+safeguards required by State and federal laws governing education services for students with 25
78+disabilities. 26
79+SECTION 1.(d) Appropriation. – There is appropriated from the General Fund to 27
80+the Special State Reserve Fund the sum of one million dollars ($1,000,000) in recurring funds 28
81+for the 2025-2026 fiscal year for the Department of Public Instruction to implement the grant 29
82+program established pursuant to this section. 30
83+SECTION 1.(e) Report. – By March 15, 2026, the Department of Public Instruction 31
84+shall report to the Joint Legislative Education Oversight Committee the number of grant 32
85+applications for the 2025-2026 school year, the amount of grant funds awarded, the types of 33
86+out-of-school system placements and service providers, and the type of extraordinary costs 34
87+reimbursed. 35
88+SECTION 2.(a) G.S. 115C-107.5 reads as rewritten: 36
89+"§ 115C-107.5. Annual reports. 37
90+The State Board shall report no later than October 15 of each year to the Joint Legislative 38
91+Education Oversight Committee on the implementation of this Article and the educational 39
92+performance of children with disabilities. The report may be filed electronically. Each annual 40
93+report shall include the following information: 41
94+… 42
95+(4) A summary analysis of the following data to be monitored and collected by 43
96+the Department of Public Instruction on students with disabilities in each local 44
97+school administrative unit on a monthly basis: 45
98+a. The number of new and continued homebound placements. 46
99+b. The number of new and continued modified day placements. 47
100+c. The number of new and continued Home/Hospital, Separate Schools, 48
101+and Residential placements. 49
102+d. The number of new and continued psychiatric residential treatment 50
103+facility placements." 51 General Assembly Of North Carolina Session 2025
104+DRH40470-NGa-81 Page 3
105+SECTION 2.(b) The State Board of Education shall submit the report required under 1
106+G.S. 115C-107.5(4), as enacted by this act, beginning October 15, 2026. 2
107+SECTION 3. This act becomes effective July 1, 2025. 3