North Carolina HB 574: Workforce Development Pilot Project.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 574

Short Title: Workforce Development Pilot Project. (Public)
Sponsors: Representatives Huneycutt, K. Hall, Chesser, and Rhyne (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Commerce and Economic Development, if favorable, Rules, Calendar, and
Operations of the House
April 1, 2025
*H574-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH A WORKFORCE DEVELOPMENT PILOT PROJECT. 2
The General Assembly of North Carolina enacts: 3
SECTION 1.(a) Purpose. – The purpose of this act is to provide a framework for 4
funds to the Office of State Budget and Management to be allocated to the North Carolina 5
Workforce Development Coalition (NCWDC), a nonprofit organization for the purpose of 6
providing grants to employers to encourage employer-sponsored training with a focus on 7
increasing job creation, reducing employee turnover, improving employee wages, and upgrading 8
the skills of workers in their occupation. NCWDC will identify and prioritize industries and 9
skillsets (i) for which training and curricula are lacking at community colleges due to insufficient 10
demand despite an ongoing societal or community need or (ii) for which significant portions of 11
training occur on-the-job without formalized study programs at institutions of higher education. 12
SECTION 1.(b) Definitions. – The following definitions apply in this act: 13
(1) Eligible employer. – A North Carolina-based business, including nonprofit 14
organizations, that (i) has at least 20 but not more than 1,500 employees 15
employed in the State and (ii) meets all of the following requirements: 16
a. Has been operating for a continuous period of at least 365 days. 17
b. Is registered and in good standing with the North Carolina 18
Unemployment Insurance program. 19
c. Is registered and in good standing with the North Carolina Workers' 20
Compensation program. 21
d. Is registered and in good standing with the North Carolina Secretary 22
of State's office, if required by law. 23
(2) Eligible training programs. – A training program (i) offered through an 24
eligible employer, association, or educational institution and (ii) for which the 25
eligible employer demonstrates the training directly relates to the trainee's 26
occupation or work responsibilities and will result in one or more of the 27
following: 28
a. Create new jobs. 29
b. Reduce employee turnover. 30
c. Enhance employee effectiveness. 31
d. Improve employee wages. 32
e. Upgrade employee skillsets. 33

General Assembly Of North Carolina Session 2025
Page 2 House Bill 574-First Edition
(3) Employee. – An individual (i) employed by an eligible employer, (ii) working 1
in this State for at least 30 hours per week, and (iii) for whom the eligible 2
employer has applied to participate in an eligible training program. The term 3
includes interns and apprentices, paid or unpaid, who work for an eligible 4
employer at least 30 hours per week. 5
(4) Trainee. – An employee participating in an eligible training program. 6
(5) Training costs. – Costs of an eligible training program for tuition; registration; 7
class fees; participant fees; class materials directly related to the training; 8
instructor fees, including in-house trainers; assessments, testing, and fees for 9
license or certification exams that are administered as part of the training 10
program. The term does not include expenses incurred for trainee wages, 11
onboarding costs for new employees, fringe benefits, lodging and meals, 12
capital construction, membership fees, license fees, subscription fees, 13
employer administrative fees, purchased, rented, or leased equipment, 14
including computer hardware or software, and expenses related to preparing 15
training grant applications. 16
SECTION 1.(c) Grants. – An eligible employer may apply for a grant equal to the 17
lesser of (i) fifty percent (50%) of the eligible training costs or (ii) two thousand dollars ($2,000) 18
per trainee, regardless of the number of business entities the trainee works for. The maximum 19
grant an eligible employer may receive in a calendar year is forty thousand dollars ($40,000) 20
minus any other State or federal grants for the same training received in that calendar year. 21
SECTION 1.(d) Application; Reimbursement. – An application for a grant must be 22
submitted to NCWDC at least 45 days prior to the start of training. NCWDC shall distribute 23
funds to eligible employers who apply and qualify based on a first-come, first-served basis until 24
funds are exhausted. Grant funds shall be paid to an eligible employer only after the eligible 25
employer has submitted a request for reimbursement meeting the following requirements: 26
(1) The request for reimbursement is submitted to NCWDC no later than 60 days 27
following completion of training. 28
(2) The request for reimbursement provides all information required by NCWDC 29