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North Carolina House Bill H933

North Carolina 2025-2026 Regular Session

North Carolina House Bill H933 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 933
3+H D
4+HOUSE BILL DRH40467-NLa-61C
5+
56
67
78 Short Title: IDD Omnibus. (Public)
8-Sponsors: Representatives Hawkins, Crawford, and White (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Appropriations, if favorable, Finance, if favorable, Rules, Calendar, and
11-Operations of the House
12-April 14, 2025
13-*H933 -v-1*
9+Sponsors: Representative Hawkins.
10+Referred to:
11+
12+*DRH40467 -NLa-61C*
1413 A BILL TO BE ENTITLED 1
1514 AN ACT TO IMPLEMENT VARIOUS CHANGES RECOMMENDED BY THE 2
1615 LEGISLATIVE JOINT CAUCUS FOR INTELLECTUAL AND DEVELOPMENTAL 3
1716 DISABILITIES TO POSITIVELY IMPACT THE LIVES OF NORTH CAROLINA 4
1817 CITIZENS WITH INTELLECTUAL OR OTHER DEVELOPMENTAL DISABILITIES. 5
1918 The General Assembly of North Carolina enacts: 6
2019 7
2120 PART I. DIRECT CARE WORKER WAGE INCREASES 8
2221 SECTION 1.(a) It is the intent of the General Assembly to assist in increasing the 9
2322 hourly wages of direct care workers in this State to a minimum of eighteen dollars ($18.00) per 10
2423 hour. To that end, the Department of Health and Human Services, Division of Health Benefits 11
2524 (DHB), shall provide a Medicaid rate increase to all of the following: 12
2625 (1) Home- and community-based providers enrolled in the Medicaid program. 13
2726 (2) Intermediate care facilities for individuals with intellectual disabilities 14
2827 (ICF/IIDs), including ICF/IID-level group homes. 15
2928 (3) Providers who provide services to Medicaid beneficiaries receiving services 16
3029 through the North Carolina Innovations waiver program, the Community 17
3130 Alternatives Program for Children, or the Community Alternatives Program 18
3231 for Disabled Adults, and who are either (i) enrolled in the Medicaid program 19
3332 or (ii) approved financial managers or financial support agencies billing for 20
3433 personal care service or waiver service hours provided by direct care workers 21
3534 that are hired by employers of record or managing employers under 22
3635 consumer-directed or self-directed options in accordance with any of the 23
3736 following Medicaid Clinical Coverage Policies: 24
3837 a. 8-P: North Carolina Innovations. 25
3938 b. 3K-1: Community Alternatives Program for Children (CAP/C). 26
4039 c. 3K-2: Community Alternatives Program for Disabled Adults 27
4140 (CAP/DA). 28
4241 d. 8H-1: 1915(i) Supported Employment. 29
4342 e. 8H-4: 1915(i) Respite. 30
4443 f. 8H-5: Community Living and Supports. 31
4544 g. 8H-6: 1915(i) Community Transition. 32
4645 SECTION 1.(b) DHB, working with a workgroup of providers, shall determine the 33
47-definition of direct care worker to be applied and the amount of the rate increases to be 34 General Assembly Of North Carolina Session 2025
48-Page 2 House Bill 933-First Edition
49-implemented under this section. DHB shall further determine the manner in which a provider or 1
50-facility shall utilize the increased rate and demonstrate compliance with those utilization 2
51-requirements, including the documentation required to be kept by the provider or facility. This 3
52-documentation shall be made available upon request by DHB or by the relevant local 4
53-management entity/managed care organization (LME/MCO). 5
54-SECTION 1.(c) Any rate increase provided under this section shall be effective on 6
55-the date approved by the Centers for Medicare and Medicaid Services. Upon implementation of 7
56-an applicable rate increase required by this section, DHB shall adjust the per member per month 8
57-(PMPM) capitation amount paid to LME/MCOs accordingly. All LME/MCOs shall be required 9
58-to implement the increase, and it shall also apply to BH IDD tailored plans. DHB shall account 10
59-for the increased rates when setting the PMPM capitation amount for the Children and Families 11
60-Specialty Plan. 12
61-SECTION 1.(d) In addition to other allowable reasons for recoupment of funds, if 13
62-DHB or an LME/MCO determines any funds related to a rate increase required under this section 14
63-were not used to the benefit of direct care workers, then DHB or the LME/MCOs shall recoup 15
64-part or all of those funds. 16
65-SECTION 1.(e) There is appropriated from the General Fund to the Department of 17
66-Health and Human Services, Division of Health Benefits, the sum of one hundred eighty-three 18
67-million dollars ($183,000,000) in recurring funds for each year of the 2025-2027 fiscal biennium 19
68-to implement this section. These funds shall provide a State match for three hundred thirty-five 20
69-million dollars ($335,000,000) in recurring federal funds for each year of the 2025-2027 fiscal 21
70-biennium, and those federal funds are appropriated to the Division of Health Benefits for the 22
71-same purpose. 23
72-SECTION 1.(f) This section is effective July 1, 2025. 24
73- 25
74-PART II. FUND ADDITIONAL INNOVATIONS WAIVER SL OTS AND DEVELOP A 26
75-10-YEAR PLAN TO ADDR ESS THE REGISTRY OF UNMET NEEDS 27
76-SECTION 2.(a) The Department of Health and Human Services, Division of Health 28
77-Benefits, shall amend the North Carolina Innovations waiver to increase the number of slots 29
78-available under the waiver by a minimum of 1,000 slots. These additional slots shall be made 30
79-available upon approval by the Centers for Medicare and Medicaid Services. 31
80-SECTION 2.(b) There is appropriated from the General Fund to the Department of 32
81-Health and Human Services, Division of Health Benefits, the sum of thirty-six million dollars 33
82-($36,000,000) in recurring funds for each year of the 2025-2027 fiscal biennium to increase the 34
83-number of slots under the North Carolina Innovations waiver, as directed by subsection (a) of 35
84-this section. These funds shall provide a State match for sixty-five million dollars ($65,000,000) 36
85-in recurring federal funds for each year of the 2025-2027 fiscal biennium, and those federal funds 37
86-are appropriated to the Division of Health Benefits for the same purpose. 38
87-SECTION 2.(c) The Department of Health and Human Services, Division of Health 39
88-Benefits (DHB), shall convene a workgroup of relevant stakeholders to develop a plan to satisfy 40
89-the registry of unmet needs for the North Carolina Innovations waiver within the next 10 years. 41
90-In developing the plan, the workgroup shall also consider the needs of individuals receiving 42
91-services approved under the 1915(i) option and may propose an alternative means of distributing 43
92-slots under the North Carolina Innovations waiver. The 10-year plan shall include a detailed cost 44
93-analysis of all recommendations and methods proposed to address the registry of unmet needs. 45
94-No later than February 1, 2026, DHB shall submit a report containing the 10-year plan to the 46
95-Joint Legislative Oversight Committee on Medicaid. 47
96-SECTION 2.(d) Subsections (a) and (b) of this section are effective July 1, 2025. 48
97- 49
98-PART III. UPDATE TO NC MEDICAID BUY-IN PROGRAM 50 General Assembly Of North Carolina Session 2025
99-House Bill 933-First Edition Page 3
100-SECTION 3.(a) No later than 90 days after this act becomes law, the Department of 1
101-Health and Human Services, Division of Health Benefits, shall submit the necessary 2
102-documentation to the Centers for Medicare and Medicaid Services (CMS) for approval to remove 3
103-the unearned income limit and the resource limit from the eligibility requirements for the Health 4
104-Coverage for Workers with Disabilities Medicaid eligibility category. Upon approval by CMS 5
105-of the removal of the unearned income and resource limits, the Secretary of the Department of 6
106-Health and Human Services shall notify the Revisor of Statutes of the effective date approved by 7
107-CMS for the removal. 8
108-SECTION 3.(b) G.S. 108A-66.1 reads as rewritten: 9
109-"§ 108A-66.1. Medicaid buy-in for workers with disabilities. 10
110-(a) Title. – This section may be cited as the Health Coverage for Workers With 11
111-Disabilities Act. The Department shall implement a Medicaid buy-in eligibility category as 12
112-permitted under P.L. 106-170, Ticket to Work and Work Incentives Improvement Act of 1999. 13
113-The Department shall establish rules, policies, and procedures to implement this act in 14
114-accordance with this section. 15
115-… 16
116-(c) Eligibility. – An Except as provided in subsection (c1) of this section, an individual 17
117-is eligible for HCWD if:if all of the following apply: 18
118-(1) The individual is at least 16 years of age and is less than 65 years of age;age. 19
119-(2) The individual either meets Social Security Disability criteria, criteria or the 20
120-individual has been enrolled in HCWD and then becomes medically improved 21
121-improved, as defined in Ticket to Work and as further specified by the 22
122-Department. An individual shall be determined to be eligible under this 23
123-section without regard to the individual's ability to engage in, or actual 24
124-engagement in, substantial gainful activity as defined in section 223 of the 25
125-Social Security Act (42 U.S.C. § 423(d)(4)). In conducting annual 26
126-redetermination of eligibility, the Department may not determine that an 27
127-individual participating in HCWD is no longer disabled based solely on the 28
128-individual's participation in employment or earned income;income. 29
129-(3) The individual's unearned income does not exceed one hundred fifty percent 30
130-(150%) of FPG, and countable resources for the individual do not exceed the 31
131-resource limit for the minimum community spouse resource standard under 32
132-42 U.S.C. § 1396r, and as further determined by the Department. In 33
133-determining an individual's countable income and resources, the Department 34
134-may not consider income or resources that are disregarded under the State 35
135-Medical Assistance Plan's financial methodology, including the 36
136-sixty-five-dollar ($65.00) disregard, impairment-related work expenses, 37
137-student earned-income exclusions, and other SSI program work incentive 38
138-income disregards; and 39
139-(4) The individual is engaged in a substantial and reasonable work effort 40
140-(employed) effort, as provided in this subdivision and subdivision, as further 41
141-defined by the Department Department, and as allowable under federal law. 42
142-For purposes of this subsection, "engaged in substantial and reasonable work 43
143-effort" means all of the following: 44
144-a. Working in a competitive, inclusive work setting, or self-employed. 45
145-b. Earning at least the applicable minimum wage. 46
146-c. Having monthly earnings above the SSI basic sixty-five-dollar 47
147-($65.00) earned-income disregard. 48
148-d. Being able to provide evidence of paying applicable Medicare, Social 49
149-Security, and State and federal income taxes. 50 General Assembly Of North Carolina Session 2025
150-Page 4 House Bill 933-First Edition
151-(c1) Additional Earnings Requirements. – The Department may impose additional 1
152-earnings requirements in defining "engaged in substantial and reasonable work effort" for 2
153-individuals who are eligible for HCWD based on medical improvement. 3
154-(c2) Involuntary Unemployment. – Individuals who participate in HCWD but thereafter 4
155-become unemployed for involuntary reasons, including health reasons, shall have continued 5
156-eligibility in HCWD for up to 12 months from the time of involuntary unemployment, so long as 6
157-the individual (i) maintains a connection with the workforce, as determined by the Department, 7
158-(ii) meets all other eligibility criteria for HCWD during the period, and (iii) pays applicable fees, 8
159-premiums, and co-payments. 9
160-(d) Fees, Premiums, and Co-Payments. – Individuals who participate in HCWD and have 10
161-countable income greater than one hundred fifty percent (150%) of FPG shall pay an annual 11
162-enrollment fee of fifty dollars ($50.00) to their county department of social services. Individuals 12
163-who participate in HCWD and have countable income greater than or equal to two hundred 13
164-percent (200%) of FPG shall pay a monthly premium in addition to the annual fee. The 14
165-Department shall set a sliding scale for premiums, which is consistent with applicable federal 15
166-law. An individual with countable income equal to or greater than four hundred fifty percent 16
167-(450%) of FPG shall pay not less than one hundred percent (100%) of the cost of the premium, 17
168-as determined by the Department. The premium shall be based on the experience of all 18
169-individuals participating in the Medical Assistance Program. Individuals who participate in 19
170-HCWD are subject to co-payments equal to those required under the Medical Assistance 20
171-Program. 21
172-(e) Countable Income. – In determining an individual's countable income, the 22
173-Department may not consider income that is disregarded under the State Medical Assistance 23
174-Plan's financial methodology, including the sixty-five dollar ($65.00) disregard, 24
175-impairment-related work expenses, student earned-income exclusions, and other SSI program 25
176-work incentive income disregards." 26
177-SECTION 3.(c) This section is effective on the date approved by the Centers for 27
178-Medicare and Medicaid Services for the removal of the unearned income and resource limits for 28
179-Health Coverage for Workers with Disabilities program eligibility, as required by Section 1 of 29
180-this act. 30
181-SECTION 3.(d) Effective July 1, 2025, there is appropriated from the General Fund 31
182-to the Department of Health and Human Services, Division of Health Benefits, the sum of one 32
183-hundred sixty-five thousand dollars ($165,000) in recurring funds for each year of the 2025-2027 33
184-fiscal biennium. These funds shall provide a State match for three hundred one thousand dollars 34
185-($301,000) in recurring federal funds for each year of the 2025-2027 fiscal biennium, and those 35
186-federal funds are appropriated to the Division of Health Benefits. 36
46+definition of direct care worker to be applied and the amount of the rate increases to be 34
47+implemented under this section. DHB shall further determine the manner in which a provider or 35
48+facility shall utilize the increased rate and demonstrate compliance with those utilization 36
49+H.B. 933
50+Apr 10, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH40467-NLa-61C
53+requirements, including the documentation required to be kept by the provider or facility. This 1
54+documentation shall be made available upon request by DHB or by the relevant local 2
55+management entity/managed care organization (LME/MCO). 3
56+SECTION 1.(c) Any rate increase provided under this section shall be effective on 4
57+the date approved by the Centers for Medicare and Medicaid Services. Upon implementation of 5
58+an applicable rate increase required by this section, DHB shall adjust the per member per month 6
59+(PMPM) capitation amount paid to LME/MCOs accordingly. All LME/MCOs shall be required 7
60+to implement the increase, and it shall also apply to BH IDD tailored plans. DHB shall account 8
61+for the increased rates when setting the PMPM capitation amount for the Children and Families 9
62+Specialty Plan. 10
63+SECTION 1.(d) In addition to other allowable reasons for recoupment of funds, if 11
64+DHB or an LME/MCO determines any funds related to a rate increase required under this section 12
65+were not used to the benefit of direct care workers, then DHB or the LME/MCOs shall recoup 13
66+part or all of those funds. 14
67+SECTION 1.(e) There is appropriated from the General Fund to the Department of 15
68+Health and Human Services, Division of Health Benefits, the sum of one hundred eighty-three 16
69+million dollars ($183,000,000) in recurring funds for each year of the 2025-2027 fiscal biennium 17
70+to implement this section. These funds shall provide a State match for three hundred thirty-five 18
71+million dollars ($335,000,000) in recurring federal funds for each year of the 2025-2027 fiscal 19
72+biennium, and those federal funds are appropriated to the Division of Health Benefits for the 20
73+same purpose. 21
74+SECTION 1.(f) This section is effective July 1, 2025. 22
75+ 23
76+PART II. FUND ADDITIONAL INNOVATIONS WAIVER SLOTS AND DEVELOP A 24
77+10-YEAR PLAN TO ADDRESS THE REGISTRY OF UNMET NEEDS 25
78+SECTION 2.(a) The Department of Health and Human Services, Division of Health 26
79+Benefits, shall amend the North Carolina Innovations waiver to increase the number of slots 27
80+available under the waiver by a minimum of 1,000 slots. These additional slots shall be made 28
81+available upon approval by the Centers for Medicare and Medicaid Services. 29
82+SECTION 2.(b) There is appropriated from the General Fund to the Department of 30
83+Health and Human Services, Division of Health Benefits, the sum of thirty-six million dollars 31
84+($36,000,000) in recurring funds for each year of the 2025-2027 fiscal biennium to increase the 32
85+number of slots under the North Carolina Innovations waiver, as directed by subsection (a) of 33
86+this section. These funds shall provide a State match for sixty-five million dollars ($65,000,000) 34
87+in recurring federal funds for each year of the 2025-2027 fiscal biennium, and those federal funds 35
88+are appropriated to the Division of Health Benefits for the same purpose. 36
89+SECTION 2.(c) The Department of Health and Human Services, Division of Health 37
90+Benefits (DHB), shall convene a workgroup of relevant stakeholders to develop a plan to satisfy 38
91+the registry of unmet needs for the North Carolina Innovations waiver within the next 10 years. 39
92+In developing the plan, the workgroup shall also consider the needs of individuals receiving 40
93+services approved under the 1915(i) option and may propose an alternative means of distributing 41
94+slots under the North Carolina Innovations waiver. The 10-year plan shall include a detailed cost 42
95+analysis of all recommendations and methods proposed to address the registry of unmet needs. 43
96+No later than February 1, 2026, DHB shall submit a report containing the 10-year plan to the 44
97+Joint Legislative Oversight Committee on Medicaid. 45
98+SECTION 2.(d) Subsections (a) and (b) of this section are effective July 1, 2025. 46
99+ 47
100+PART III. UPDATE TO NC MEDICAID BUY -IN PROGRAM 48
101+SECTION 3.(a) No later than 90 days after this act becomes law, the Department of 49
102+Health and Human Services, Division of Health Benefits, shall submit the necessary 50
103+documentation to the Centers for Medicare and Medicaid Services (CMS) for approval to remove 51 General Assembly Of North Carolina Session 2025
104+DRH40467-NLa-61C Page 3
105+the unearned income limit and the resource limit from the eligibility requirements for the Health 1
106+Coverage for Workers with Disabilities Medicaid eligibility category. Upon approval by CMS 2
107+of the removal of the unearned income and resource limits, the Secretary of the Department of 3
108+Health and Human Services shall notify the Revisor of Statutes of the effective date approved by 4
109+CMS for the removal. 5
110+SECTION 3.(b) G.S. 108A-66.1 reads as rewritten: 6
111+"§ 108A-66.1. Medicaid buy-in for workers with disabilities. 7
112+(a) Title. – This section may be cited as the Health Coverage for Workers With 8
113+Disabilities Act. The Department shall implement a Medicaid buy-in eligibility category as 9
114+permitted under P.L. 106-170, Ticket to Work and Work Incentives Improvement Act of 1999. 10
115+The Department shall establish rules, policies, and procedures to implement this act in 11
116+accordance with this section. 12
117+… 13
118+(c) Eligibility. – An Except as provided in subsection (c1) of this section, an individual 14
119+is eligible for HCWD if:if all of the following apply: 15
120+(1) The individual is at least 16 years of age and is less than 65 years of age;age. 16
121+(2) The individual either meets Social Security Disability criteria, criteria or the 17
122+individual has been enrolled in HCWD and then becomes medically improved 18
123+improved, as defined in Ticket to Work and as further specified by the 19
124+Department. An individual shall be determined to be eligible under this 20
125+section without regard to the individual's ability to engage in, or actual 21
126+engagement in, substantial gainful activity as defined in section 223 of the 22
127+Social Security Act (42 U.S.C. § 423(d)(4)). In conducting annual 23
128+redetermination of eligibility, the Department may not determine that an 24
129+individual participating in HCWD is no longer disabled based solely on the 25
130+individual's participation in employment or earned income;income. 26
131+(3) The individual's unearned income does not exceed one hundred fifty percent 27
132+(150%) of FPG, and countable resources for the individual do not exceed the 28
133+resource limit for the minimum community spouse resource standard under 29
134+42 U.S.C. § 1396r, and as further determined by the Department. In 30
135+determining an individual's countable income and resources, the Department 31
136+may not consider income or resources that are disregarded under the State 32
137+Medical Assistance Plan's financial methodology, including the 33
138+sixty-five-dollar ($65.00) disregard, impairment-related work expenses, 34
139+student earned-income exclusions, and other SSI program work incentive 35
140+income disregards; and 36
141+(4) The individual is engaged in a substantial and reasonable work effort 37
142+(employed) effort, as provided in this subdivision and subdivision, as further 38
143+defined by the Department Department, and as allowable under federal law. 39
144+For purposes of this subsection, "engaged in substantial and reasonable work 40
145+effort" means all of the following: 41
146+a. Working in a competitive, inclusive work setting, or self-employed. 42
147+b. Earning at least the applicable minimum wage. 43
148+c. Having monthly earnings above the SSI basic sixty-five-dollar 44
149+($65.00) earned-income disregard. 45
150+d. Being able to provide evidence of paying applicable Medicare, Social 46
151+Security, and State and federal income taxes. 47
152+(c1) Additional Earnings Requirements. – The Department may impose additional 48
153+earnings requirements in defining "engaged in substantial and reasonable work effort" for 49
154+individuals who are eligible for HCWD based on medical improvement. 50 General Assembly Of North Carolina Session 2025
155+Page 4 DRH40467-NLa-61C
156+(c2) Involuntary Unemployment. – Individuals who participate in HCWD but thereafter 1
157+become unemployed for involuntary reasons, including health reasons, shall have continued 2
158+eligibility in HCWD for up to 12 months from the time of involuntary unemployment, so long as 3
159+the individual (i) maintains a connection with the workforce, as determined by the Department, 4
160+(ii) meets all other eligibility criteria for HCWD during the period, and (iii) pays applicable fees, 5
161+premiums, and co-payments. 6
162+(d) Fees, Premiums, and Co-Payments. – Individuals who participate in HCWD and have 7
163+countable income greater than one hundred fifty percent (150%) of FPG shall pay an annual 8
164+enrollment fee of fifty dollars ($50.00) to their county department of social services. Individuals 9
165+who participate in HCWD and have countable income greater than or equal to two hundred 10
166+percent (200%) of FPG shall pay a monthly premium in addition to the annual fee. The 11
167+Department shall set a sliding scale for premiums, which is consistent with applicable federal 12
168+law. An individual with countable income equal to or greater than four hundred fifty percent 13
169+(450%) of FPG shall pay not less than one hundred percent (100%) of the cost of the premium, 14
170+as determined by the Department. The premium shall be based on the experience of all 15
171+individuals participating in the Medical Assistance Program. Individuals who participate in 16
172+HCWD are subject to co-payments equal to those required under the Medical Assistance 17
173+Program. 18
174+(e) Countable Income. – In determining an individual's countable income, the 19
175+Department may not consider income that is disregarded under the State Medical Assistance 20
176+Plan's financial methodology, including the sixty-five dollar ($65.00) disregard, 21
177+impairment-related work expenses, student earned-income exclusions, and other SSI program 22
178+work incentive income disregards." 23
179+SECTION 3.(c) This section is effective on the date approved by the Centers for 24
180+Medicare and Medicaid Services for the removal of the unearned income and resource limits for 25
181+Health Coverage for Workers with Disabilities program eligibility, as required by Section 1 of 26
182+this act. 27
183+SECTION 3.(d) Effective July 1, 2025, there is appropriated from the General Fund 28
184+to the Department of Health and Human Services, Division of Health Benefits, the sum of one 29
185+hundred sixty-five thousand dollars ($165,000) in recurring funds for each year of the 2025-2027 30
186+fiscal biennium. These funds shall provide a State match for three hundred one thousand dollars 31
187+($301,000) in recurring federal funds for each year of the 2025-2027 fiscal biennium, and those 32
188+federal funds are appropriated to the Division of Health Benefits. 33
189+ 34
190+PART IV. MEDICAID COMMUNITY ACTIVITIES AND EMPLOYMENT 35
191+TRANSITIONS SERVICES 36
192+SECTION 4.(a) The Department of Health and Human Services, Division of Health 37
193+Benefits (DHB), shall study the feasibility of adding coverage of a new Medicaid service, entitled 38
194+"Community Activities and Employment Transitions" (CAET), that provides individualized 39
195+services and supports for individuals age 16 or older with intellectual or other developmental 40
196+disabilities and that meets the criteria established in this subsection. DHB shall consider the 41
197+feasibility of adding the coverage in any of the following ways: (i) by adding an "in-lieu-of" 42
198+service offered through the 1115 waiver for Medicaid transformation, (ii) by adding or amending 43
199+a 1915(i) home- and community-based State Plan amendment to include the service, or (iii) by 44
200+adding the service to any existing Medicaid waiver in this State. The new CAET service shall 45
201+meet all of the following criteria: 46
202+(1) The new service shall be modeled after (i) the nonresidential components of 47
203+the service, entitled "Long-Term Community Supports," currently provided 48
204+by Vaya Health and (ii) similar services provided by Alliance Behavioral 49
205+Healthcare that support a meaningful week when used either separately or 50
206+with other available services. 51 General Assembly Of North Carolina Session 2025
207+DRH40467-NLa-61C Page 5
208+(2) The CAET service shall not include any residential component. 1
209+(3) Services must originate from facilities that meet the home- and 2
210+community-based services standards established by DHB and under federal 3
211+law. 4
212+SECTION 4.(b) In studying the feasibility of a new CAET service in accordance 5
213+with subsection (a) of this section, DHB shall collaborate with the Marketing Association for 6
214+Rehabilitation Centers (MARC), the North Carolina Association for Rehabilitation Facilities 7
215+(NCARF), the North Carolina Association of Professional Supported Employment (NCAPSE), 8
216+all LME/MCOs, and other appropriate stakeholders. Concurrent with the study of the feasibility 9
217+of a new CAET service, the Commission for Mental Health, Developmental Disabilities, and 10
218+Substance Abuse Services (Commission) established under Part 4 of Article 3 of Chapter 143B 11
219+of the General Statutes also shall collaborate with those stakeholders to review any relevant rules, 12
220+including 10A NCAC 27G .2301 through .2306. The Commission may amend any relevant rules 13
221+and, if necessary, may adopt additional rules to account for the numerous community-based 14
222+activities and employment services that may be provided to Medicaid beneficiaries as part of a 15
223+new CAET service. 16
224+SECTION 4.(c) Consistent with the authority granted under G.S. 108A-54(e), DHB 17
225+may submit any State Plan amendments or waivers, or request other approval from the Centers 18
226+for Medicare and Medicaid Services, necessary for the implementation of any new CAET service 19
227+determined to be feasible under subsection (a) of this section. Coverage of the new service may 20
228+not begin earlier than January 1, 2026. 21
229+SECTION 4.(d) No later than April 1, 2026, DHB shall submit a report to the Joint 22
230+Legislative Oversight Committee on Medicaid detailing the following information related to any 23
231+new CAET service determined to be feasible under this section: 24
232+(1) The definition for the CAET service and any new Medicaid clinical coverage 25
233+policy or changes to an existing Medicaid clinical coverage policy. 26
234+(2) The anticipated annual cost to the State of adding the CAET service. 27
235+(3) Any legislative changes necessary in order to implement the CAET service. 28
236+(4) Any recommendations regarding the future establishment of a new facility 29
237+license for facilities providing the CAET service. 30
238+(5) Whether DHB is able to add coverage for the CAET service pursuant to its 31
239+authority under G.S. 108A-54(e) or whether appropriations are required prior 32
240+to implementation. If DHB intends to add coverage of the CAET service 33
241+pursuant to its authority under G.S. 108A-54(e), the expected implementation 34
242+date. 35
243+SECTION 4.(e) There is appropriated from the General Fund to the Department of 36
244+Health and Human Services, Division of Health Benefits, the sum of two million dollars 37
245+($2,000,000) in nonrecurring funds for the 2025-2026 fiscal year to be used to support the 38
246+feasibility study required by subsection (a) of this section and for drafting the requests for the 39
247+authorities or supports needed to implement any proposed new CAET service determined to be 40
248+feasible under that subsection. 41
249+SECTION 4.(f) Subsection (e) of this section is effective July 1, 2025. 42
250+ 43
251+PART V. STATE RENTAL ASSISTANCE PROGRAM (SRAP) FOR I/DD HOUSING 44
252+SECTION 5.(a) The Department of Health and Human Services, Division of Mental 45
253+Health, Development Disabilities, and Substance Use Services, shall develop a State Rental 46
254+Assistance Program to provide vouchers to assist individuals with intellectual and developmental 47
255+disabilities to transition to integrated housing as required by the 2024 consent order entered in 48
256+Samantha R., et al. v. State of North Carolina, et al., 17 CVS 6357-910 (Wake County Superior 49
257+Court). The program shall be modeled after the Transitions to Community Living program. 50 General Assembly Of North Carolina Session 2025
258+Page 6 DRH40467-NLa-61C
259+SECTION 5.(b) Effective July 1, 2025, there is appropriated to the Department of 1
260+Health and Human Services, Division of Mental Health, Developmental Disabilities, and 2
261+Substance Use Services, the sum of one hundred thousand dollars ($100,000) in recurring funds 3
262+for each year of the 2025-2027 fiscal biennium to be used to support the program created pursuant 4
263+to subsection (a) of this section. 5
264+SECTION 5.(c) The Department of Health and Human Services, Division of Mental 6
265+Health, Developmental Disabilities, and Substance Use Services, shall convene a workgroup of 7
266+relevant stakeholders to develop a five-year plan for monthly housing rental subsidies to be 8
267+provided to individuals with intellectual or other developmental disabilities for use in integrated 9
268+settings. This plan shall create 200 new monthly housing rental subsidies to be provided to 10
269+individuals with intellectual or other developmental disabilities each year over the course of five 11
270+years, resulting in the creation of a total of 1,000 monthly housing rental subsidies by the end of 12
271+the five-year period. In developing the plan, the workgroup shall consider similar subsidy 13
272+programs in Virginia, Maryland, Connecticut, and Pennsylvania. The five-year plan shall include 14
273+a detailed cost analysis of the plan. Any plan developed under this subsection shall be in 15
274+furtherance of the State's compliance with the United States Supreme Court decision in Olmstead 16
275+v. L.C., 527 U.S. 581 (1999). No later than October 1, 2025, the Division of Mental Health, 17
276+Developmental Disabilities, and Substance Use Services shall submit a report containing the 18
277+five-year plan to the Joint Legislative Oversight Committee on Medicaid and to the members of 19
278+the Legislative Joint Caucus for Intellectual and Developmental Disabilities. 20
279+ 21
280+PART VI. STATE MATCH FOR REHABILITATION SERVICES ADMINISTRATION 22
281+(RSA) FEDERAL GRANT 23
282+SECTION 6.(a) There is appropriated from the General Fund to the Department of 24
283+Health and Human Services, Division of Employment and Independence for People with 25
284+Disabilities (DEIPD), the sum of four million seven hundred fifty-five thousand seventy-one 26
285+dollars ($4,755,071) in recurring funds for each year of the 2025-2027 fiscal biennium to be used 27
286+to increase pay to address the vacancy rate in DEIPD, raise rates for Community Rehabilitation 28
287+Programs, and sustain the vocational rehabilitation workforce to ensure individuals with 29
288+disabilities can access paid employment services. These funds shall provide a State match for 30
289+seventeen million five hundred sixty-nine thousand two hundred four dollars ($17,569,204) in 31
290+recurring federal funds, and those federal funds are appropriated to DEIPD for the same purpose. 32
291+SECTION 6.(b) There is appropriated from the General Fund to the Department of 33
292+Health and Human Services, Division of Services for the Blind (DSB), the sum of nine hundred 34
293+ninety-five thousand one hundred sixty-three dollars ($995,163) in recurring funds for each year 35
294+of the 2025-2027 fiscal biennium to be used to increase pay to address the vacancy rate in DSB, 36
295+raise rates for Community Rehabilitation Programs, and sustain the vocational rehabilitation 37
296+workforce to ensure individuals with disabilities can access paid employment services. These 38
297+funds shall provide a State match for three million six hundred seventy-six thousand nine hundred 39
298+fifty-nine dollars ($3,676,959) in recurring federal funds, and those federal funds are 40
299+appropriated to DSB for the same purpose. 41
300+SECTION 6.(c) This section is effective July 1, 2025. 42
301+ 43
302+PART VII. BAN USE OF PRONE RESTRAINT AND REQUIRE INCREASED 44
303+PARENTAL NOTIFICATION AND TEACHER TRAINING ON THE USE OF 45
304+SECLUSION AND RESTRAINT 46
305+SECTION 7.(a) G.S. 115C-391.1 reads as rewritten: 47
306+"§ 115C-391.1. Permissible use of seclusion and restraint. 48
307+… 49
308+(c) Physical Restraint: 50
309+… 51 General Assembly Of North Carolina Session 2025
310+DRH40467-NLa-61C Page 7
311+(5) Physically restraining a student in a prone position is prohibited. 1
312+… 2
313+(j) Notice, Consent, Reporting, and Documentation. – 3
314+(1) Notice of procedures. – Each governing body of a public school unit shall 4
315+provide copies of this section and all governing body policies developed to 5
316+implement this section to school personnel and parents or guardians at the 6
317+beginning of each school year. The public school unit shall request 7
318+confirmation that parents have received the policy. 8
319+(2) Notice of specified incidents: 9
320+a. School personnel shall promptly notify the principal or principal's 10
321+designee of: 11
322+1. Any use of aversive procedures. 12
323+2. Any prohibited use of mechanical restraint. 13
324+3. Any use of physical restraint resulting in observable physical 14
325+injury to a student.restraint. 15
326+4. Any prohibited use of seclusion or seclusion that exceeds 10 16
327+minutes or the amount of time specified on a student's behavior 17
328+intervention plan.seclusion. 18
329+5. If the seclusion or restraint was used in a prohibited manner, 19
330+caused observable physical injury to a student, or exceeded 10 20
331+minutes or the amount of time specified on a student's behavior 21
332+intervention plan. 22
333+b. When a principal or principal's designee has personal knowledge or 23
334+actual notice of any of the events described in this subdivision, the 24
335+principal or principal's designee shall promptly notify the student's 25
336+parent or guardian and will provide the name of a school employee the 26
337+parent or guardian can contact regarding the incident. 27
338+(3) As used in subdivision (2) of this subsection, "promptly notify" means by the 28
339+end of the workday school day during which the incident occurred when 29
340+reasonably possible, but in no event later than the end of following 30
341+workday.occurred. 31
342+…." 32
343+SECTION 7.(b) G.S. 115C-270.30(b)(1) reads as rewritten: 33
344+"(1) For all teachers, at least eight continuing education credits with at least three 34
345+credits required in a teacher's academic subject area.and at least one credit on 35
346+the use of seclusion and restraint, including State policies, safe techniques, 36
347+and trauma-informed practices." 37
348+SECTION 7.(c) This section is effective when it becomes law and applies beginning 38
349+with the 2025-2026 school year. 39
350+ 40
351+PART VIII. DASHBOARD FOR SUSPENSION RATES FOR STUDENTS WITH IEPS 41
352+SECTION 8.(a) G.S. 115C-12(27) reads as rewritten: 42
353+"(27) Reporting Dropout Rates, Corporal Punishment, Suspensions, Expulsions, 43
354+and Alternative Placements. – The State Board shall report by March 15 of 44
355+each year to the Joint Legislative Education Oversight Committee on the 45
356+numbers of students who have dropped out of school, been subjected to 46
357+corporal punishment, been suspended, been expelled, been reassigned for 47
358+disciplinary purposes, or been provided alternative education services. The 48
359+data shall be reported in a disaggregated manner, reflecting the local school 49
360+administrative unit, race, gender, grade level, ethnicity, and disability status 50
361+of each affected student. Such data shall be readily available to the public. 51 General Assembly Of North Carolina Session 2025
362+Page 8 DRH40467-NLa-61C
363+public via an electronic dashboard established and maintained by the State 1
364+Board. The State Board shall not include students that have been expelled 2
365+from school when calculating the dropout rate. The Board shall maintain a 3
366+separate record of the number of students who are expelled from school and 4
367+the reasons for the expulsion." 5
368+SECTION 8.(b) This section is effective when it becomes law and applies beginning 6
369+with the 2025-2026 school year. 7
370+ 8
371+PART IX. ADDITIONAL FUNDS FOR NORTH CAROLINA PERSONAL EDUCATION 9
372+STUDENT ACCOUNTS FOR CHILDREN WITH DISABILITIES PROGRAM 10
373+SECTION 9.(a) There is appropriated from the General Fund to the Board of 11
374+Governors of The University of North Carolina the sum of twenty-five million dollars 12
375+($25,000,000) in recurring funds for each year of the 2025-2027 fiscal biennium to be allocated 13
376+to the State Education Assistance Authority for the North Carolina Personal Education Student 14
377+Accounts for Children with Disabilities Program in accordance with Article 41 of Chapter 115C 15
378+of the General Statutes. 16
379+SECTION 9.(b) G.S. 115C-600(a) reads as rewritten: 17
380+"(a) The General Assembly finds that due to the continued growth and ongoing need in 18
381+this State to provide opportunity for school choice for children with disabilities, it is imperative 19
382+that the State provide an increase in funds of at least one million dollars ($1,000,000) each fiscal 20
383+year for 10 years for the Personal Education Student Accounts for Children with Disabilities 21
384+Program. To that end, there is appropriated from the General Fund to the Board of Governors of 22
385+The University of North Carolina the following amounts each fiscal year to be allocated to the 23
386+Authority for the Program in accordance with this Article: 24
387+Fiscal Year Appropriation 25
388+… 26
389+2027-2028 $77,643,166$102,643,166 27
390+2028-2029 $78,643,166$103,643,166 28
391+2029-2030 $79,643,166$104,643,166 29
392+2030-2031 $80,643,166$105,643,166 30
393+2031-2032 $81,643,166$106,643,166 31
394+2032-2033 and each subsequent fiscal year thereafter $82,643,166$107,643,166 32
395+When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year specified 33
396+in this section, the Director of the Budget shall include the appropriated amount specified in this 34
397+section for that fiscal year." 35
398+SECTION 9.(c) This section becomes effective July 1, 2025. 36
187399 37
188-PART IV. MEDICAID CO MMUNITY ACTIVITIES AND EMPLO YMENT 38
189-TRANSITIONS SERVICES 39
190-SECTION 4.(a) The Department of Health and Human Services, Division of Health 40
191-Benefits (DHB), shall study the feasibility of adding coverage of a new Medicaid service, entitled 41
192-"Community Activities and Employment Transitions" (CAET), that provides individualized 42
193-services and supports for individuals age 16 or older with intellectual or other developmental 43
194-disabilities and that meets the criteria established in this subsection. DHB shall consider the 44
195-feasibility of adding the coverage in any of the following ways: (i) by adding an "in-lieu-of" 45
196-service offered through the 1115 waiver for Medicaid transformation, (ii) by adding or amending 46
197-a 1915(i) home- and community-based State Plan amendment to include the service, or (iii) by 47
198-adding the service to any existing Medicaid waiver in this State. The new CAET service shall 48
199-meet all of the following criteria: 49
200-(1) The new service shall be modeled after (i) the nonresidential components of 50
201-the service, entitled "Long-Term Community Supports," currently provided 51 General Assembly Of North Carolina Session 2025
202-House Bill 933-First Edition Page 5
203-by Vaya Health and (ii) similar services provided by Alliance Behavioral 1
204-Healthcare that support a meaningful week when used either separately or 2
205-with other available services. 3
206-(2) The CAET service shall not include any residential component. 4
207-(3) Services must originate from facilities that meet the home- and 5
208-community-based services standards established by DHB and under federal 6
209-law. 7
210-SECTION 4.(b) In studying the feasibility of a new CAET service in accordance 8
211-with subsection (a) of this section, DHB shall collaborate with the Marketing Association for 9
212-Rehabilitation Centers (MARC), the North Carolina Association for Rehabilitation Facilities 10
213-(NCARF), the North Carolina Association of Professional Supported Employment (NCAPSE), 11
214-all LME/MCOs, and other appropriate stakeholders. Concurrent with the study of the feasibility 12
215-of a new CAET service, the Commission for Mental Health, Developmental Disabilities, and 13
216-Substance Abuse Services (Commission) established under Part 4 of Article 3 of Chapter 143B 14
217-of the General Statutes also shall collaborate with those stakeholders to review any relevant rules, 15
218-including 10A NCAC 27G .2301 through .2306. The Commission may amend any relevant rules 16
219-and, if necessary, may adopt additional rules to account for the numerous community-based 17
220-activities and employment services that may be provided to Medicaid beneficiaries as part of a 18
221-new CAET service. 19
222-SECTION 4.(c) Consistent with the authority granted under G.S. 108A-54(e), DHB 20
223-may submit any State Plan amendments or waivers, or request other approval from the Centers 21
224-for Medicare and Medicaid Services, necessary for the implementation of any new CAET service 22
225-determined to be feasible under subsection (a) of this section. Coverage of the new service may 23
226-not begin earlier than January 1, 2026. 24
227-SECTION 4.(d) No later than April 1, 2026, DHB shall submit a report to the Joint 25
228-Legislative Oversight Committee on Medicaid detailing the following information related to any 26
229-new CAET service determined to be feasible under this section: 27
230-(1) The definition for the CAET service and any new Medicaid clinical coverage 28
231-policy or changes to an existing Medicaid clinical coverage policy. 29
232-(2) The anticipated annual cost to the State of adding the CAET service. 30
233-(3) Any legislative changes necessary in order to implement the CAET service. 31
234-(4) Any recommendations regarding the future establishment of a new facility 32
235-license for facilities providing the CAET service. 33
236-(5) Whether DHB is able to add coverage for the CAET service pursuant to its 34
237-authority under G.S. 108A-54(e) or whether appropriations are required prior 35
238-to implementation. If DHB intends to add coverage of the CAET service 36
239-pursuant to its authority under G.S. 108A-54(e), the expected implementation 37
240-date. 38
241-SECTION 4.(e) There is appropriated from the General Fund to the Department of 39
242-Health and Human Services, Division of Health Benefits, the sum of two million dollars 40
243-($2,000,000) in nonrecurring funds for the 2025-2026 fiscal year to be used to support the 41
244-feasibility study required by subsection (a) of this section and for drafting the requests for the 42
245-authorities or supports needed to implement any proposed new CAET service determined to be 43
246-feasible under that subsection. 44
247-SECTION 4.(f) Subsection (e) of this section is effective July 1, 2025. 45
248- 46
249-PART V. STATE RENTAL ASSISTANCE PROGRAM (SRAP) FOR I/DD HOUSING 47
250-SECTION 5.(a) The Department of Health and Human Services, Division of Mental 48
251-Health, Development Disabilities, and Substance Use Services, shall develop a State Rental 49
252-Assistance Program to provide vouchers to assist individuals with intellectual and developmental 50
253-disabilities to transition to integrated housing as required by the 2024 consent order entered in 51 General Assembly Of North Carolina Session 2025
254-Page 6 House Bill 933-First Edition
255-Samantha R., et al. v. State of North Carolina, et al., 17 CVS 6357-910 (Wake County Superior 1
256-Court). The program shall be modeled after the Transitions to Community Living program. 2
257-SECTION 5.(b) Effective July 1, 2025, there is appropriated to the Department of 3
258-Health and Human Services, Division of Mental Health, Developmental Disabilities, and 4
259-Substance Use Services, the sum of one hundred thousand dollars ($100,000) in recurring funds 5
260-for each year of the 2025-2027 fiscal biennium to be used to support the program created pursuant 6
261-to subsection (a) of this section. 7
262-SECTION 5.(c) The Department of Health and Human Services, Division of Mental 8
263-Health, Developmental Disabilities, and Substance Use Services, shall convene a workgroup of 9
264-relevant stakeholders to develop a five-year plan for monthly housing rental subsidies to be 10
265-provided to individuals with intellectual or other developmental disabilities for use in integrated 11
266-settings. This plan shall create 200 new monthly housing rental subsidies to be provided to 12
267-individuals with intellectual or other developmental disabilities each year over the course of five 13
268-years, resulting in the creation of a total of 1,000 monthly housing rental subsidies by the end of 14
269-the five-year period. In developing the plan, the workgroup shall consider similar subsidy 15
270-programs in Virginia, Maryland, Connecticut, and Pennsylvania. The five-year plan shall include 16
271-a detailed cost analysis of the plan. Any plan developed under this subsection shall be in 17
272-furtherance of the State's compliance with the United States Supreme Court decision in Olmstead 18
273-v. L.C., 527 U.S. 581 (1999). No later than October 1, 2025, the Division of Mental Health, 19
274-Developmental Disabilities, and Substance Use Services shall submit a report containing the 20
275-five-year plan to the Joint Legislative Oversight Committee on Medicaid and to the members of 21
276-the Legislative Joint Caucus for Intellectual and Developmental Disabilities. 22
277- 23
278-PART VI. STATE MATCH FOR REHABILITATION SERVICES ADMINISTRAT ION 24
279-(RSA) FEDERAL GRANT 25
280-SECTION 6.(a) There is appropriated from the General Fund to the Department of 26
281-Health and Human Services, Division of Employment and Independence for People with 27
282-Disabilities (DEIPD), the sum of four million seven hundred fifty-five thousand seventy-one 28
283-dollars ($4,755,071) in recurring funds for each year of the 2025-2027 fiscal biennium to be used 29
284-to increase pay to address the vacancy rate in DEIPD, raise rates for Community Rehabilitation 30
285-Programs, and sustain the vocational rehabilitation workforce to ensure individuals with 31
286-disabilities can access paid employment services. These funds shall provide a State match for 32
287-seventeen million five hundred sixty-nine thousand two hundred four dollars ($17,569,204) in 33
288-recurring federal funds, and those federal funds are appropriated to DEIPD for the same purpose. 34
289-SECTION 6.(b) There is appropriated from the General Fund to the Department of 35
290-Health and Human Services, Division of Services for the Blind (DSB), the sum of nine hundred 36
291-ninety-five thousand one hundred sixty-three dollars ($995,163) in recurring funds for each year 37
292-of the 2025-2027 fiscal biennium to be used to increase pay to address the vacancy rate in DSB, 38
293-raise rates for Community Rehabilitation Programs, and sustain the vocational rehabilitation 39
294-workforce to ensure individuals with disabilities can access paid employment services. These 40
295-funds shall provide a State match for three million six hundred seventy-six thousand nine hundred 41
296-fifty-nine dollars ($3,676,959) in recurring federal funds, and those federal funds are 42
297-appropriated to DSB for the same purpose. 43
298-SECTION 6.(c) This section is effective July 1, 2025. 44
299- 45
300-PART VII. BAN USE OF PRONE RESTRAINT AND REQUIRE INCREASED 46
301-PARENTAL NOTIFICATIO N AND TEACHER TRAINI NG ON THE USE OF 47
302-SECLUSION AND RESTRA INT 48
303-SECTION 7.(a) G.S. 115C-391.1 reads as rewritten: 49
304-"§ 115C-391.1. Permissible use of seclusion and restraint. 50
305-… 51 General Assembly Of North Carolina Session 2025
306-House Bill 933-First Edition Page 7
307-(c) Physical Restraint: 1
308-… 2
309-(5) Physically restraining a student in a prone position is prohibited. 3
310-… 4
311-(j) Notice, Consent, Reporting, and Documentation. – 5
312-(1) Notice of procedures. – Each governing body of a public school unit shall 6
313-provide copies of this section and all governing body policies developed to 7
314-implement this section to school personnel and parents or guardians at the 8
315-beginning of each school year. The public school unit shall request 9
316-confirmation that parents have received the policy. 10
317-(2) Notice of specified incidents: 11
318-a. School personnel shall promptly notify the principal or principal's 12
319-designee of: 13
320-1. Any use of aversive procedures. 14
321-2. Any prohibited use of mechanical restraint. 15
322-3. Any use of physical restraint resulting in observable physical 16
323-injury to a student.restraint. 17
324-4. Any prohibited use of seclusion or seclusion that exceeds 10 18
325-minutes or the amount of time specified on a student's behavior 19
326-intervention plan.seclusion. 20
327-5. If the seclusion or restraint was used in a prohibited manner, 21
328-caused observable physical injury to a student, or exceeded 10 22
329-minutes or the amount of time specified on a student's behavior 23
330-intervention plan. 24
331-b. When a principal or principal's designee has personal knowledge or 25
332-actual notice of any of the events described in this subdivision, the 26
333-principal or principal's designee shall promptly notify the student's 27
334-parent or guardian and will provide the name of a school employee the 28
335-parent or guardian can contact regarding the incident. 29
336-(3) As used in subdivision (2) of this subsection, "promptly notify" means by the 30
337-end of the workday school day during which the incident occurred when 31
338-reasonably possible, but in no event later than the end of following 32
339-workday.occurred. 33
340-…." 34
341-SECTION 7.(b) G.S. 115C-270.30(b)(1) reads as rewritten: 35
342-"(1) For all teachers, at least eight continuing education credits with at least three 36
343-credits required in a teacher's academic subject area.and at least one credit on 37
344-the use of seclusion and restraint, including State policies, safe techniques, 38
345-and trauma-informed practices." 39
346-SECTION 7.(c) This section is effective when it becomes law and applies beginning 40
347-with the 2025-2026 school year. 41
348- 42
349-PART VIII. DASHBOARD FOR SUSPENSION RATE S FOR STUDENTS WITH IEPS 43
350-SECTION 8.(a) G.S. 115C-12(27) reads as rewritten: 44
351-"(27) Reporting Dropout Rates, Corporal Punishment, Suspensions, Expulsions, 45
352-and Alternative Placements. – The State Board shall report by March 15 of 46
353-each year to the Joint Legislative Education Oversight Committee on the 47
354-numbers of students who have dropped out of school, been subjected to 48
355-corporal punishment, been suspended, been expelled, been reassigned for 49
356-disciplinary purposes, or been provided alternative education services. The 50
357-data shall be reported in a disaggregated manner, reflecting the local school 51 General Assembly Of North Carolina Session 2025
358-Page 8 House Bill 933-First Edition
359-administrative unit, race, gender, grade level, ethnicity, and disability status 1
360-of each affected student. Such data shall be readily available to the public. 2
361-public via an electronic dashboard established and maintained by the State 3
362-Board. The State Board shall not include students that have been expelled 4
363-from school when calculating the dropout rate. The Board shall maintain a 5
364-separate record of the number of students who are expelled from school and 6
365-the reasons for the expulsion." 7
366-SECTION 8.(b) This section is effective when it becomes law and applies beginning 8
367-with the 2025-2026 school year. 9
368- 10
369-PART IX. ADDITIONAL FUNDS FOR NORTH CAROLINA PERS ONAL EDUCATION 11
370-STUDENT ACCOUNTS FOR CHILDREN WITH DISAB ILITIES PROGRAM 12
371-SECTION 9.(a) There is appropriated from the General Fund to the Board of 13
372-Governors of The University of North Carolina the sum of twenty-five million dollars 14
373-($25,000,000) in recurring funds for each year of the 2025-2027 fiscal biennium to be allocated 15
374-to the State Education Assistance Authority for the North Carolina Personal Education Student 16
375-Accounts for Children with Disabilities Program in accordance with Article 41 of Chapter 115C 17
376-of the General Statutes. 18
377-SECTION 9.(b) G.S. 115C-600(a) reads as rewritten: 19
378-"(a) The General Assembly finds that due to the continued growth and ongoing need in 20
379-this State to provide opportunity for school choice for children with disabilities, it is imperative 21
380-that the State provide an increase in funds of at least one million dollars ($1,000,000) each fiscal 22
381-year for 10 years for the Personal Education Student Accounts for Children with Disabilities 23
382-Program. To that end, there is appropriated from the General Fund to the Board of Governors of 24
383-The University of North Carolina the following amounts each fiscal year to be allocated to the 25
384-Authority for the Program in accordance with this Article: 26
385-Fiscal Year Appropriation 27
386-… 28
387-2027-2028 $77,643,166$102,643,166 29
388-2028-2029 $78,643,166$103,643,166 30
389-2029-2030 $79,643,166$104,643,166 31
390-2030-2031 $80,643,166$105,643,166 32
391-2031-2032 $81,643,166$106,643,166 33
392-2032-2033 and each subsequent fiscal year thereafter $82,643,166$107,643,166 34
393-When developing the base budget, as defined by G.S. 143C-1-1, for each fiscal year specified 35
394-in this section, the Director of the Budget shall include the appropriated amount specified in this 36
395-section for that fiscal year." 37
396-SECTION 9.(c) This section becomes effective July 1, 2025. 38
397- 39
398-PART X. SUPPORT FOR STUDENTS WITH DISABI LITIES 40
399-SECTION 10.(a) Program Established. – Beginning with the 2025-2026 school year, 41
400-the Department of Public Instruction shall establish a grant program for local school 42
401-administrative units to apply for funds from the Special State Reserve Fund (SSRF) for children 43
402-with disabilities for the purpose of covering the extraordinary costs of certain students with 44
403-disabilities, including costs associated with the placement of students in private schools with 45
404-approved nonpublic education programs providing special education in accordance with a 46
405-student's individualized education program (IEP). The grant program shall provide funds for 47
406-students with disabilities on an ongoing basis according to the students' IEPs. The grant program 48
407-established by this act shall be administered separately from the grant program funded from the 49
408-SSRF available to local school administrative units for high costs related to emergency situations 50
409-for children with disabilities in a school year. Funds administered pursuant to this act shall be to 51 General Assembly Of North Carolina Session 2025
410-House Bill 933-First Edition Page 9
411-supplement and not supplant existing federal, State, and local funding for children with 1
412-disabilities. 2
413-SECTION 10.(b) Applications. – A local school administrative unit may apply for 3
414-grant funds for a student with disabilities served by the unit for extraordinary costs associated 4
415-with services provided to the student, including for a placement in a private school that has an 5
416-approved nonpublic education program providing special education in accordance with a 6
417-student's IEP. To be eligible for a grant, the local school administrative unit must demonstrate 7
418-that the total cost of the services equals or exceeds four times the State average per pupil 8
419-expenditure for children with disabilities in the prior fiscal year. The local school administrative 9
420-unit shall provide documentation to the Department of Public Instruction to support the funding 10
421-request. The student's IEP must support the determination of the services, including if the 11
422-placement of the student is at a private school. Grant funds shall be student-specific and follow 12
423-the student for special education and related services provided within the State. The Department 13
424-shall require documentation for renewal of the grant for each school year with a request for funds 14
425-for the student. The Department shall reimburse seventy-five percent (75%) of the extraordinary 15
426-costs and disburse funds in quarterly amounts to providers on an approved list from the 16
427-Department. 17
428-For the purposes of this act, extraordinary costs shall only include costs directly 18
429-attributable to providing the special education services on the student's IEP, such as salary of 19
430-educational personnel; salary of related services personnel; costs for specialized books, materials, 20
431-or equipment; tuition costs; and consultant costs, if directly attributable to the student's 21
432-instructional program. Extraordinary costs shall not include administrative or overhead costs, the 22
433-costs of adapting classrooms or materials that are used by more than one student, nor the costs 23
434-associated with evaluation, development of the IEP, or service coordination for the student with 24
435-disabilities. 25
436-SECTION 10.(c) Oversight. – The Department of Public Instruction shall ensure 26
437-that, if a student who is covered by grant funds is placed in a private school that has an approved 27
438-nonpublic education program providing special education in accordance with a student's 28
439-individualized education program (IEP), the school is approved by the Department as adhering 29
440-to State and federal laws governing education services for students with disabilities and State and 30
441-federal laws governing seclusion and restraint of students. The student's local school 31
442-administrative unit shall remain legally responsible for ensuring the student is receiving a free 32
443-appropriate public education (FAPE) in the least restrictive environment (LRE) while the student 33
444-is placed in the private school, as required by State and federal laws governing education services 34
445-for students with disabilities, and the unit shall conduct an annual review of the student's IEP and 35
446-any interim reviews requested by the student's parent or legal guardian for purposes of 36
447-educational decision making in accordance with federal and State laws. Prior to approving a 37
448-renewal of the grant for a particular student, the Department shall ensure that the annual review 38
449-of the student's IEP has been completed and the student's parent or legal guardian, for purposes 39
450-of educational decision making, has received the notice of procedural safeguards required by 40
451-State and federal laws governing education services for students with disabilities. 41
452-SECTION 10.(d) Appropriation. – There is appropriated from the General Fund to 42
453-the Special State Reserve Fund the sum of one million dollars ($1,000,000) in recurring funds 43
454-for the 2025-2026 school year for the Department of Public Instruction to implement the grant 44
455-program established pursuant to this section. 45
456-SECTION 10.(e) Report. – By March 15, 2026, the Department of Public Instruction 46
457-shall report to the Joint Legislative Education Oversight Committee, the House Appropriations 47
458-Education Committee, the Senate Appropriations on Education/Higher Education Committee, 48
459-and the Fiscal Research Division on the amount of grant applications for the 2025-2026 school 49
460-year, the amount of grant funds awarded, the types of out-of-school system placements and 50
461-service providers, and the type of extraordinary costs reimbursed. 51 General Assembly Of North Carolina Session 2025
462-Page 10 House Bill 933-First Edition
463-SECTION 10.(f) G.S. 115C-107.5 reads as rewritten: 1
464-"§ 115C-107.5. Annual reports. 2
465-The State Board shall report no later than October 15 of each year to the Joint Legislative 3
466-Education Oversight Committee on the implementation of this Article and the educational 4
467-performance of children with disabilities. The report may be filed electronically. Each annual 5
468-report shall include the following information: 6
469-… 7
470-(4) A summary analysis of the following data to be monitored and collected by 8
471-the Department of Public Instruction on students with disabilities in each local 9
472-school administrative unit on a monthly basis: 10
473-a. The number of new and continued homebound placements. 11
474-b. The number of new and continued modified day placements. 12
475-c. The number of new and continued Home/Hospital, Separate Schools, 13
476-and Residential placements. 14
477-d. The number of new and continued PRTF placements. 15
478-The data collected by the Department under this subdivision shall be 16
479-disaggregated by gender, race, ethnicity, disability, grade level, and school 17
480-within a local school administrative unit. The report may reflect deidentified 18
481-data for individual students, when available, regarding disciplinary outcomes, 19
482-length of homebound, modified day, or institutionalized placements, 20
483-including total number of homebound, modified day, and institutionalized 21
484-placements over the course of a student's public school enrollment, and over 22
485-the current and two prior school years, and the regular education, special 23
486-education, and related services being received (i) prior to and (ii) during the 24
487-homebound, modified day, or an institutionalized setting placement. The 25
488-report shall also include any findings by the Office of Special Education 26
489-Programs that relate to the implementation of a free and public education in 27
490-the State, including any findings of noncompliance or deficiencies." 28
491-SECTION 10.(g) The State Board of Education shall submit the information 29
492-required pursuant to G.S. 115C-107.5(4), as enacted by this section, beginning with the report 30
493-submitted to the Joint Legislative Education Oversight Committee by October 15, 2026. 31
494-SECTION 10.(h) This section becomes effective July 1, 2025. 32
495- 33
496-PART XI. DEVELOP AN OFFICE FOR ACCESSIBLE TRANSPORTAT ION 34
497-SECTION 11.(a) The Secretary of the Department of Transportation shall create and 35
498-administer an office within the Department of Transportation to be known as the Office of 36
499-Accessible Transportation and Mobility. 37
500-SECTION 11.(b) The purpose of the Office is to provide resources and expertise for 38
501-expanding and improving accessible transportation and mobility across the State at the direction 39
502-of the Secretary. 40
503-SECTION 11.(c) All appropriate State and local agencies shall coordinate with the 41
504-Department of Transportation toward the goal of expanding and improving accessible 42
505-transportation and mobility across the State. 43
506-SECTION 11.(d) The Office shall consult with stakeholders, selected by the 44
507-Department, who are consumers of accessible transportation as well as professionals with 45
508-experience in transportation, disability, and aging. 46
509-SECTION 11.(e) No later than March 31, 2026, the Department shall submit a report 47
510-containing the following information to the House Appropriations Committee on Transportation, 48
511-the Senate Appropriations Committee on Department of Transportation, and the Fiscal Research 49
512-Division: 50
513-(1) A detailed statement on the Office's mission and scope of responsibilities. 51 General Assembly Of North Carolina Session 2025
514-House Bill 933-First Edition Page 11
515-(2) A five-year strategic plan to guide the Office's work. 1
516- 2
517-PART XII. EFFECTIVE DATE 3
518-SECTION 12. Except as otherwise provided, this act is effective when it becomes 4
519-law. 5
400+PART X. SUPPORT FOR STUDENTS WITH DISABILITIES 38
401+SECTION 10.(a) Program Established. – Beginning with the 2025-2026 school year, 39
402+the Department of Public Instruction shall establish a grant program for local school 40
403+administrative units to apply for funds from the Special State Reserve Fund (SSRF) for children 41
404+with disabilities for the purpose of covering the extraordinary costs of certain students with 42
405+disabilities, including costs associated with the placement of students in private schools with 43
406+approved nonpublic education programs providing special education in accordance with a 44
407+student's individualized education program (IEP). The grant program shall provide funds for 45
408+students with disabilities on an ongoing basis according to the students' IEPs. The grant program 46
409+established by this act shall be administered separately from the grant program funded from the 47
410+SSRF available to local school administrative units for high costs related to emergency situations 48
411+for children with disabilities in a school year. Funds administered pursuant to this act shall be to 49
412+supplement and not supplant existing federal, State, and local funding for children with 50
413+disabilities. 51 General Assembly Of North Carolina Session 2025
414+DRH40467-NLa-61C Page 9
415+SECTION 10.(b) Applications. – A local school administrative unit may apply for 1
416+grant funds for a student with disabilities served by the unit for extraordinary costs associated 2
417+with services provided to the student, including for a placement in a private school that has an 3
418+approved nonpublic education program providing special education in accordance with a 4
419+student's IEP. To be eligible for a grant, the local school administrative unit must demonstrate 5
420+that the total cost of the services equals or exceeds four times the State average per pupil 6
421+expenditure for children with disabilities in the prior fiscal year. The local school administrative 7
422+unit shall provide documentation to the Department of Public Instruction to support the funding 8
423+request. The student's IEP must support the determination of the services, including if the 9
424+placement of the student is at a private school. Grant funds shall be student-specific and follow 10
425+the student for special education and related services provided within the State. The Department 11
426+shall require documentation for renewal of the grant for each school year with a request for funds 12
427+for the student. The Department shall reimburse seventy-five percent (75%) of the extraordinary 13
428+costs and disburse funds in quarterly amounts to providers on an approved list from the 14
429+Department. 15
430+For the purposes of this act, extraordinary costs shall only include costs directly 16
431+attributable to providing the special education services on the student's IEP, such as salary of 17
432+educational personnel; salary of related services personnel; costs for specialized books, materials, 18
433+or equipment; tuition costs; and consultant costs, if directly attributable to the student's 19
434+instructional program. Extraordinary costs shall not include administrative or overhead costs, the 20
435+costs of adapting classrooms or materials that are used by more than one student, nor the costs 21
436+associated with evaluation, development of the IEP, or service coordination for the student with 22
437+disabilities. 23
438+SECTION 10.(c) Oversight. – The Department of Public Instruction shall ensure 24
439+that, if a student who is covered by grant funds is placed in a private school that has an approved 25
440+nonpublic education program providing special education in accordance with a student's 26
441+individualized education program (IEP), the school is approved by the Department as adhering 27
442+to State and federal laws governing education services for students with disabilities and State and 28
443+federal laws governing seclusion and restraint of students. The student's local school 29
444+administrative unit shall remain legally responsible for ensuring the student is receiving a free 30
445+appropriate public education (FAPE) in the least restrictive environment (LRE) while the student 31
446+is placed in the private school, as required by State and federal laws governing education services 32
447+for students with disabilities, and the unit shall conduct an annual review of the student's IEP and 33
448+any interim reviews requested by the student's parent or legal guardian for purposes of 34
449+educational decision making in accordance with federal and State laws. Prior to approving a 35
450+renewal of the grant for a particular student, the Department shall ensure that the annual review 36
451+of the student's IEP has been completed and the student's parent or legal guardian, for purposes 37
452+of educational decision making, has received the notice of procedural safeguards required by 38
453+State and federal laws governing education services for students with disabilities. 39
454+SECTION 10.(d) Appropriation. – There is appropriated from the General Fund to 40
455+the Special State Reserve Fund the sum of one million dollars ($1,000,000) in recurring funds 41
456+for the 2025-2026 school year for the Department of Public Instruction to implement the grant 42
457+program established pursuant to this section. 43
458+SECTION 10.(e) Report. – By March 15, 2026, the Department of Public Instruction 44
459+shall report to the Joint Legislative Education Oversight Committee, the House Appropriations 45
460+Education Committee, the Senate Appropriations on Education/Higher Education Committee, 46
461+and the Fiscal Research Division on the amount of grant applications for the 2025-2026 school 47
462+year, the amount of grant funds awarded, the types of out-of-school system placements and 48
463+service providers, and the type of extraordinary costs reimbursed. 49
464+SECTION 10.(f) G.S. 115C-107.5 reads as rewritten: 50
465+"§ 115C-107.5. Annual reports. 51 General Assembly Of North Carolina Session 2025
466+Page 10 DRH40467-NLa-61C
467+The State Board shall report no later than October 15 of each year to the Joint Legislative 1
468+Education Oversight Committee on the implementation of this Article and the educational 2
469+performance of children with disabilities. The report may be filed electronically. Each annual 3
470+report shall include the following information: 4
471+… 5
472+(4) A summary analysis of the following data to be monitored and collected by 6
473+the Department of Public Instruction on students with disabilities in each local 7
474+school administrative unit on a monthly basis: 8
475+a. The number of new and continued homebound placements. 9
476+b. The number of new and continued modified day placements. 10
477+c. The number of new and continued Home/Hospital, Separate Schools, 11
478+and Residential placements. 12
479+d. The number of new and continued PRTF placements. 13
480+The data collected by the Department under this subdivision shall be 14
481+disaggregated by gender, race, ethnicity, disability, grade level, and school 15
482+within a local school administrative unit. The report may reflect deidentified 16
483+data for individual students, when available, regarding disciplinary outcomes, 17
484+length of homebound, modified day, or institutionalized placements, 18
485+including total number of homebound, modified day, and institutionalized 19
486+placements over the course of a student's public school enrollment, and over 20
487+the current and two prior school years, and the regular education, special 21
488+education, and related services being received (i) prior to and (ii) during the 22
489+homebound, modified day, or an institutionalized setting placement. The 23
490+report shall also include any findings by the Office of Special Education 24
491+Programs that relate to the implementation of a free and public education in 25
492+the State, including any findings of noncompliance or deficiencies." 26
493+SECTION 10.(g) The State Board of Education shall submit the information 27
494+required pursuant to G.S. 115C-107.5(4), as enacted by this section, beginning with the report 28
495+submitted to the Joint Legislative Education Oversight Committee by October 15, 2026. 29
496+SECTION 10.(h) This section becomes effective July 1, 2025. 30
497+ 31
498+PART XI. DEVELOP AN OFFICE FOR ACCESSIBLE TRANSPORTATION 32
499+SECTION 11.(a) The Secretary of the Department of Transportation shall create and 33
500+administer an office within the Department of Transportation to be known as the Office of 34
501+Accessible Transportation and Mobility. 35
502+SECTION 11.(b) The purpose of the Office is to provide resources and expertise for 36
503+expanding and improving accessible transportation and mobility across the State at the direction 37
504+of the Secretary. 38
505+SECTION 11.(c) All appropriate State and local agencies shall coordinate with the 39
506+Department of Transportation toward the goal of expanding and improving accessible 40
507+transportation and mobility across the State. 41
508+SECTION 11.(d) The Office shall consult with stakeholders, selected by the 42
509+Department, who are consumers of accessible transportation as well as professionals with 43
510+experience in transportation, disability, and aging. 44
511+SECTION 11.(e) No later than March 31, 2026, the Department shall submit a report 45
512+containing the following information to the House Appropriations Committee on Transportation, 46
513+the Senate Appropriations Committee on Department of Transportation, and the Fiscal Research 47
514+Division: 48
515+(1) A detailed statement on the Office's mission and scope of responsibilities. 49
516+(2) A five-year strategic plan to guide the Office's work. 50
517+ 51 General Assembly Of North Carolina Session 2025
518+DRH40467-NLa-61C Page 11
519+PART XII. EFFECTIVE DATE 1
520+SECTION 12. Except as otherwise provided, this act is effective when it becomes 2
521+law. 3