North CarolinaSB 1252025-2026 SessionSenateWALLET

AN ACT TO REORGANIZE CHAPTER 115D OF THE GENERAL STATUTES AND MAKE NECESSARY CONFORMING CHANGES.

Sponsored By: Kevin Corbin (Republican), Dana Jones (Republican), Michael V. Lee (Republican)

Signed by Governor

APPOINTMENTSAPPROPRIATIONSBOARDSBUDGETINGCOLLEGES & UNIVERSITIESCOMMUNITY COLLEGESCOMMUNITY COLLEGES BOARDCOMMUNITY COLLEGES OFFICECONTRACTSCURRICULUMEDUCATIONEDUCATION, STATE BOARD OFFUNDS & ACCOUNTSHIGHER EDUCATIONPRESENTEDPUBLICRATIFIEDSESSION LAWSTUITIONUNCUNC BOARD OF GOVERNORSCHAPTEREDCOMMUNITY COLLEGE BOARDS

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Bill Overview

Analyzed Economic Effects

36 provisions identified: 21 benefits, 5 costs, 10 mixed.

College protections for National Guard duty

If you serve in the National Guard and are placed on State active duty, your absences are excused. You can make up tests or work and take part online when feasible. You may receive temporary grades with time to finish, or drop a course without penalty if you cannot complete it.

Help for students with disabilities

The State Board sets up training at up to 15 colleges for people with intellectual and developmental disabilities. The program offers micro‑credentials, work training, apprenticeships, technology help, and money and benefits counseling. The System Office also adds at least two statewide support staff and trains advisors to guide these students. The Office looks for long‑term funding to keep services going.

In-state tuition for federal responders

Federal law enforcement, firefighters, EMS, and rescue staff with a permanent duty station in North Carolina get the in‑state community college tuition rate. The course must support the employer’s training needs and be approved by the State Board. This applies only if the person does not already qualify for a tuition waiver.

Less red tape for accredited college programs

Accredited public colleges and government agencies do not pay certain approval, renewal, and per‑licensee fees for qualifying and continuing education courses. Accredited community college massage programs are exempt from separate Board approval and licensure if the college certifies yearly that standards are met. Graduates from those accredited massage programs qualify for licensure.

More paths from high school to college

The law expands tuition-free dual enrollment through Career & College Promise. The College Transfer pathway requires 30 college credits, including English and math. Freshmen and sophomores may join only if they are academically gifted, get advising, and have parent consent. Community colleges and school districts can run cooperative innovative high schools with State Board approval. New “Career and College Ready” routes let juniors or seniors take college math and English, including summer options, to get ready before graduation.

Residency teaching license expanded to nonpublic schools

Residency teaching licenses can be requested by public school units or certain approved nonpublic schools that provide special education. You must have at least a bachelor’s, be enrolled in an educator prep program, and have a supervision certification. You must also complete required coursework or pass the content exam. The license lasts one year and can be renewed twice.

Tuition-free college for high schoolers

Qualified high school students can take community college courses without paying tuition through Career & College Promise. Juniors and seniors can earn technical certificates, diplomas, or industry credentials. Some freshmen and sophomores can join certain career‑tech fields if they meet program rules. Gateway to College students can take needed developmental courses after an individual review, and those hours count for college funding. The Boards must also report outcomes and costs each year by March 15.

Up to $750 for short job training

The Short-Term Workforce Grant gives eligible students up to $750 for short, noncredit job credentials. You must qualify as an in‑state resident for tuition through the State’s residency system. The State Board reports each year by April 1 on total grants paid and student counts by program.

School safety grants stay available longer

The law keeps certain school safety grant money from returning to the state until June 30, 2027. It covers nonrecurring funds for the 2021-2023 and 2023-2025 School Safety Grants Programs at the Department of Public Instruction. The funds remain available for their original school safety uses through that date. Grant recipients can continue to spend the money as planned.

More support for Customized Training

Community colleges help employers with pre‑hire and on‑the‑job training, but college staff cannot do the company’s regular management work. Each college can keep up to 10% of last year’s college‑delivered costs and up to 5% of contractor‑delivered costs to build training capacity. The State Board may use up to 8% of yearly program funds to train and support regional staff. The System Office must report by September 1 each year on funds per company, per trainee, trainees served, and years funded.

Stronger State Board oversight and coordination

The State Board sets system policies and standards, and approves college sites, leaders, budgets, and tuition within state policy. It runs regular compliance reviews using valid samples and sends serious findings to college leaders and the State Auditor. The Board reviews overlapping service areas at least every five years and reviews lease‑purchase contracts. It coordinates data exchange with K–12 and higher ed, may appoint interim trustees for up to 12 months, and receives transfer‑student performance reports from UNC to drive fixes. The System Office also keeps the Department of Revenue updated with a current list of all community colleges.

Year-round classes count toward state funding

Colleges can offer curriculum courses any time of year, including summer. Student hours from those courses count in the state’s full‑time equivalent (FTE) funding formula. This helps sustain course access year‑round.

Tighter controls on new programs and sites

Colleges need State Board approval to start new programs unless tuition fully pays all costs. If tuition later falls short, the program must end unless the Board approves it. New multicampus centers cannot be approved without identified recurring funding and must be at least four miles from the main campus. Local colleges must follow State Board admission and graduation standards. Community colleges cannot contract to provide high‑school‑level courses or replace funding for public school high school teachers.

Career coaches in high schools, with funding

The law places community college–employed career coaches in high schools under a signed agreement. Coaches are hired and paid by the college; schools provide space, records access, and support. State awards require a local match: tier 1 counties pay $0, tier 2 pay $1 local for each $2 state, and tier 3 pay $1 local for each $1 state. The System Office may use up to 4% of funds for program administration.

New rules on using high school accreditation

The old blanket ban on using a high school’s accreditation status is repealed. The State Board now bars colleges from asking about or using a North Carolina high school’s non‑State accreditation in admissions, loans, or scholarships. Colleges may consider accreditation by a State agency. This protects applicants from being judged by non‑State accreditation labels.

Tuition waivers limited to listed groups

The State Board may waive tuition and fees only under uniform rules for listed groups. Waivers cover high school students in community college courses, certain public‑safety trainees, Customized Training participants, some adults in high school completion, school staff taking first aid/CPR, certain HR development students, and qualified pre‑apprentices/apprentices. Broad, discretionary waivers are not allowed.

Who counts as an eligible private college

An eligible private college must be a nonprofit with a main North Carolina campus that awards degrees. It must meet specific accreditation rules, including regional or TRACS accreditation, or a set SACSCOC/TRACS status as of January 1, 2021. Schools run by a hospital authority and certain nursing schools also qualify. This changes which private schools can access State‑linked programs.

Customized Training Program rules and funding

The law creates a statewide Customized Training Program to help businesses train workers. A company must show capital investment, new technology, job creation or productivity gains, and skill upgrades to qualify. Program funds no longer expire at year‑end. Up to 15% of yearly funds may support training for regional staff who deliver services, with Board approval. The Board may allow program funds to support U.S. Armed Forces training projects.

ASL and teacher licensure courses

The State Board sets standards for American Sign Language classes and encourages colleges to offer ASL as a modern language. Community colleges may also offer courses for people entering teaching through the residency licensure path.

Bookstore profits can fund student aid

Bookstore profits can support the bookstore, pay for student aid or scholarships, and fund other direct student benefits. Colleges may not use these profits to boost employee salaries.

More noncredit classes open to teens

High school students age 16 and older can take many noncredit courses. In summer, students under 16 may take self‑supporting noncredit classes. Qualified youth age 15 and older can take approved fire training that leads to certification.

Motorcycle safety courses at community colleges

The State runs a motorcycle safety instruction program through the Community College System. Participating colleges can offer the training, run by a coordinator or under contract. Riders get more access to safety courses statewide.

Religious absences and driver certificate rules

Colleges must excuse at least two absences each academic year for a student’s religious observances and allow make‑up work. The State Board sets clear steps and forms for driving eligibility certificates, including who can sign, how to appeal, and when colleges must notify the DMV.

Youth can take fire training courses

Unpaid members of real fire departments or rescue squads, ages 15 to 17, may enroll in approved community college fire courses. The courses must be on a State Board‑approved specialized list. This gives qualified youth access to certification‑ready training.

More college performance and oversight reports

The State Board now rates colleges on student success in credit English and in credit Math or Science. The System Office reports every year by April 15 on the UNC–community college 2+2 E‑Learning Initiative, including courses, teacher counts, spending, and recommendations. The Board also monitors athletics compliance and reports any violating community college to the Joint Legislative Education Oversight Committee.

Stronger accreditation and faculty standards

The State Board requires each college to maintain accreditation under state law. Colleges must meet their accreditor’s faculty credential rules. A college may sue to recover costs and attorney fees if someone knowingly or recklessly sends false claims to its accreditor that trigger a costly review.

Workforce training leadership and coastal support

The Community Colleges System Office is the lead agency for workforce training, adult literacy, and adult education. The State Board must use its Reserve Fund for pilots, feasibility studies, and starting new programs. The System Office helps coastal colleges offer commercial fishing and aquaculture classes and reports any barriers.

Use school appeals for driver eligibility

If you challenge a driving eligibility certificate decision, you must use education appeal rules. You cannot appeal under the general driver licensing chapter. School‑related appeal procedures now control these cases.

Fees for high school equivalency tests

Community colleges may charge fees for adult high school equivalency tests, including retests. The fees pay for scoring, test administration, diploma printing, and required reporting.

Standard tuition for part-time students

Part‑time students in curriculum courses pay a pro rata share of the full‑time tuition rate. For State‑funded extension courses, the State Board sets a uniform registration fee schedule instead of charging tuition.

Recreation and real estate classes self-funded

State money cannot support recreation extension courses or real estate continuing education at community colleges. These classes must pay for themselves. Hours from recreation activities do not count toward State funding formulas.

Staff pay rules and course benefit

The State Board sets salary scales and allotment rules for college funds, and some staff are exempt from the State Human Resources Act. Salary caps for presidents apply only to the State‑paid part; the State Treasurer sets the employer contribution rate on the locally paid part. Colleges may pay tuition and fees for one course per semester for eligible full‑time faculty or staff.

Limits on college accreditation cycles

A college cannot use the same accreditor for back‑to‑back cycles, unless allowed by the law. If it seeks a new accreditor, it must pursue a regional agency. If candidacy with a different regional accreditor is not granted at least three years before the current accreditation expires, the college may stay with its current accreditor for one more cycle.

New rules for college transfer programs

The State Board sets the standards to add and run college transfer programs. It may approve adding a transfer program, but if it needs a large funding increase, approval depends on a General Assembly appropriation. The law also repeals the prior statute that governed transfer‑program approval and reporting.

Statute cleanup and system reorganization

The law repeals several community college statutes and session‑law sections. It removes prior lists of Board authorities and other articles, and relies on new structures and Board rules. The changes are structural and do not by themselves set new program dollars or student eligibility.

Tighter rules for prison education courses

Community colleges need State Board approval to teach captive or co‑opted groups at State expense. Prison courses must focus on job skills or re‑entry needs, and funds are limited to State prison inmates. Priority goes to restoring basic skills funding to the 2008–09 level. Multi‑entry/multi‑exit classes are barred in prisons except for literacy. Courses in federal prisons can be self‑supporting but do not earn regular budget funding.

Sponsors & Cosponsors

Sponsors

  • Kevin Corbin

    Republican • Senate

  • Dana Jones

    Republican • Senate

  • Michael V. Lee

    Republican • Senate

Cosponsors

  • Timothy D. Moffitt

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 302 • No: 0

Senate vote • 6/25/2025

SB 125: Various Education Changes.

Yes: 46 • No: 0 • Other: 4

House vote • 6/11/2025

SB 125: Various Education Changes.

Yes: 107 • No: 0 • Other: 13

House vote • 6/11/2025

SB 125: Various Education Changes.

Yes: 106 • No: 0 • Other: 13

Senate vote • 3/4/2025

SB 125: Reorganization of Chapter 115D.

Yes: 43 • No: 0 • Other: 7

Bill Text

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