Omnibus Life Sciences Appropriations.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 956

Short Title: Omnibus Life Sciences Appropriations. (Public)
Sponsors: Senators Sawrey and Chaudhuri (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S956-v-1*
A BILL TO BE ENTITLED 1
AN ACT APPROPRIATING FUNDS TO THE DEPART MENT OF COMMERCE FOR 2
VARIOUS PURPOSES; RE VISING THE COMPOSITI ON AND DUTIES OF THE 3
ADVISORY COUNCIL ON RARE DISEASES; TRANS FERRING THE COUNCIL TO 4
THE DEPARTMENT OF HE ALTH AND HUMAN SERVI CES; APPROPRIATING 5
FUNDS TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO COVER 6
THE OPERATING EXPENS ES OF THE COUNCIL; A LLOWING CERTAIN WATE R 7
AND SEWER ECONOMIC DEVELOPMENT PROJECTS; AND CREATING THE LIFE 8
SCIENCE AND BIOMANUFACTURING TECHNOLOGIES RESERVE FUND. 9
The General Assembly of North Carolina enacts: 10
11
PART I. ONE NORTH CAROLINA SMALL BUSINESS ACCOUNT APPROPRIATION 12
SECTION 1. There is appropriated from the General Fund to the Department of 13
Commerce the sum of ten million dollars ($10,000,000) in recurring funds beginning in the 14
2026-2027 fiscal year to be allocated to the One North Carolina Small Business Account 15
established in G.S. 143B-437.71. 16
17
PART II. NORTH CAROLINA BIOTECHNOLOGY CENTER APPROPRIATION 18
SECTION 2. There is appropriated from the General Fund to the Department of 19
Commerce for the North Carolina Biotechnology Center (the Center) the sum of two million 20
dollars ($2,000,000) in recurring funds beginning in the 2026 -2027 fiscal year to support life 21
science company funding, university technology development, workforce de velopment, and 22
economic development programs administered by the Center. 23
24
PART III. ADVISORY COUNCIL ON RARE DISEASES 25
SECTION 3.1. Part 6 of Article 1B of Chapter 130A of the General Statutes reads 26
as rewritten: 27
"Part 6. Taylor's Law Establishing the Advisory Council on Rare Diseases. 28
"§ 130A-33.65. Advisory Council on Rare Diseases; membership; terms; compensation; 29
meetings; quorum. 30
(a) Short Title. – This Part shall be known as Taylor 's Law Establishing the Advisory 31
Council on Rare Diseases. 32
(a1) Establishment of Advisory Council. – There is established the Advisory Council on 33
Rare Diseases within the School of Medicine of the University of North Carolina at Chapel Hill 34
Department of Health and Human Services to advise the Governor, the Secretary, and the General 35
Assembly on research, diagnosis, treatment, and education relating to rare diseases. This Part 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 956-First Edition
shall be known as Taylor's Law Establishing the Advisory Council on Rare Diseases. For 1
purposes of this Part, "rare disease" has the same meaning as provided in 21 U.S.C. § 360bb. 2
(b) Advisory Council Membership. – The advisory council shall consist of 19 members 3
to be appointed as follows: 4
(1) Upon the recommendation of the Dean of the School of Medicine of t he 5
University of North Carolina at Chapel Hill, the The Secretary shall appoint 6
members to the advisory council as follows:the following 15 members: 7
a. A physician Two physicians licensed and practicing in this State with 8
experience researching, diagnosing, or treating rare diseases. 9
b. A medical researcher with experience conducting research concerning 10
rare diseases. 11
c. A One registered nurse or advanced practice registered nurse licensed 12
and practicing in the State with experience treating rare diseases. 13
d. One rare diseases survivor. 14
e. One member who represents a rare diseases foundation. 15
f. One representative researcher from each an academic research 16
institution in this State that receives any grant funding for rare diseases 17
research. 18
g. One parent of a childhood rare disease survivor. 19
h. One hospital administrator , or the hospital administrator 's designee, 20
representing a hospital in the State that provides care to persons 21
diagnosed with a rare disease. 22
i. Two persons age 18 or older who have been diagnosed with a rare 23
disease. 24
j. Two persons age 18 o r older who are, or were previously, caregivers 25
to a person diagnosed with a rare disease. 26
k. One representative of a rare disease patient organization that operates 27
in the State. 28
l. One pharmacist licensed and practicing in this State with knowledge 29
and experience regarding drugs used to treat rare diseases. 30
m. One representative of the life sciences , biotechnology, or 31
biopharmaceutical industry that either focus es on research efforts 32
related to th e development of therapeutic products for persons 33
diagnosed with a rare disease or has demonstratable understanding of 34
the path to commercialization of such products. 35
n. Two representatives of a health benefit plan or health insurer , at least 36
one of whom is a representative of a North Carolina Medicaid 37
Managed Care health plan. 38
o. One genetic counselor with experience providing services to persons 39
diagnosed with a rare disease or caregivers of persons diagnosed with 40
a rare disease. 41
(2) The chairs of the Joint Legislative Oversight Committee on Health and Human 42
Services, or the chairs' designees, shall serve on the advisory council. A 43
member of the advisory council who is designated by the chairs of the Joint 44
Legislative Oversight Com mittee on Health and Human Services may be a 45
member of the General Assembly. 46
(2a) One member appointed by the President Pro Tempore of the Senate. 47
(2b) One member appointed by the Speaker of the House of Representatives. 48
(2c) One member appointed by the Governor. 49
(3) The Secretary, or the Secretary's designee, shall serve as an ex officio, 50
nonvoting member of the advisory council. 51
General Assembly Of North Carolina Session 2025
Senate Bill 956-First Edition Page 3
(c) Members Length of Terms. – All initial members appointed pursuant to subsection 1
(b) of this section to the advisory council shall serve for a term of three years, and no member 2
initial member, except for the initial physician member s and the initial member representing a 3
rare disease patient organization , shall serve more than three consecutive terms. The initial 4
physician members and the initial member representing a rare disease patient or ganization may 5
serve for up to four consecutive terms. Thereafter, members appointed by the President Pro 6
Tempore of the Senate , the Speaker of the House of Representatives , and the Gover nor shall 7
serve for a term of two years; and members appointed by the Secretary shall serve for a term of 8
two, three, or four years, as determined by the chair of the advisory council. 9
(c1) Vacancies and Removals. – Any appointment to fill a vacancy on the advisory council 10
created by the resignation, dismissal, death, or disability of a member shall be filled by the 11
appointing authority for the balance of the unexpired term. Each appointing authority may 12
remove any member appointed by that appointing author ity for misfeasance, malfeasance, or 13
nonfeasance. 14
(d) Per Diem and Expenses. – Members of the advisory council shall receive per diem 15
and necessary travel and subsistence expenses in accordance with the provisions of G.S. 138-5 16
or G.S. 138-6 or travel and subsistence expenses in accordance with the provisions of 17
G.S. 120-3.1, as applicable. 18
(e) Administrative Support. – All administrative support and other services required by 19
the advisory council shall be provided by the School of Medicine of the Universit y of North 20
Carolina at Chapel Hill.Department. 21
(f) Upon the recommendation of the Dean of the School of Medicine of the University 22
of North Carolina at Chapel Hill, Selection of Chair. – The Secretary shall select the chair of the 23
advisory council from among the members of the council. The chair shall serve in this position 24
until the expiration of his or her term. 25
(g) The chair shall convene the first meeting of the advisory council no later than October 26
1, 2015. Meetings and Quorum. – A majority of the council members shall constitute a quorum. 27
A majority vote of a quorum shall be required for any official action of the advisory council. 28
Following the first meeting, the advisory council shall meet at least quarterly . The advisory 29
council may meet more frequently upon the call of the chair or upon the request of a majority of 30
council members. 31
"§ 130A-33.66. Advisory Council on Rare Diseases; powers and duties; reports. 32
The advisory council shall have the following powers and duties: 33
(1) Advise on coordinating the Governor, the Secretary, and the General 34
Assembly on all of the following: 35
a. Coordination of statewide efforts for the to study of the incidence of 36
rare diseases within the State and the status of the rare disease 37
community. 38
b. Coordination of statewide efforts to increase public awareness and 39
understanding of rare diseases. 40
c. Identification of p olicy issues related to rare diseases and the 41
advancement of policy initiatives related to rare diseases at the State 42
and federal levels. 43
d. The appropriation of State funds to facilitate increased public 44
awareness of and improved treatment for rare diseases. 45
(2) Report to the Secretary, the Governor, and the Joint Legislative Oversight 46
Committee on Health and Human Services Services, and the Fiscal Research 47
Division on behalf of the General Assembly not later than January 1, 2016, 48
and annually thereafter, on the activities of the advisory council and its 49
findings and recommendations regarding rare disease research and care in 50
North Caroli na, including any recommendations for statutory changes and 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 956-First Edition
amendments to the structure, organization, and powers or duties of the 1
advisory council. 2
(3) In consultation with accredited medical schools, accredited schools of public 3
health, and hospitals licensed to operate in the State that provide care to 4
persons diagnosed with a rare disease, develop resources or recommendations 5
regarding quality of and access to treatment and services available within the 6
State for persons diagnosed with a rare disease. 7
(4) Advise and consult with the Department, the North Carolina Drug Utilization 8
Review Board , and the Medicaid Preferred Drug List Review Panel in 9
developing recommendations, resources, and programs relating to the 10
diagnosis and treatment of rare diseases. 11
(5) Identify additional relevant areas for the advisory council to study and 12
evaluate." 13
SECTION 3.2. There is appropriated from the General Fund to the Department of 14
Health and Human Services the sum of two hundred fifty thousand dollars ($250,000) in 15
recurring funds beginning in the 2026 -2027 fiscal year to be allocated to cover the operating 16
expenses of the Advisory Council on Rare Diseases authorized by G.S. 130A-33.65, as amended 17
by Section 3.1 of this act. 18
19
PART IV. WATER AND SEWER ECONOMIC DEVELOPMENT PROGRAM 20
SECTION 4.(a) Award Authorized. – Pursuant to Part 2H of Article 10 of Chapter 21
143B of the General Statutes, the Department of Commerce may commit in a Governor's Letter 22
to reimburse, over a period of time not less than 10 years, a business, as defined in 23
G.S. 143B-437.51, for the costs incurred for an eligible project. For purposes of this se ction, an 24
eligible project is the construction of, or improvements to, new or existing water or sewer lines, 25
facilities, or equipment for new, proposed, or existing buildings by the business, and can include 26
water reuse and water reclamation projects, if the business commits, in a company performance 27
agreement, to the requirements of subsection (c) of this section. 28
SECTION 4.(b) Award Amount. – The total amount that may be committed for 29
reimbursement under this section is equal to the lesser of (i) fifty m illion dollars ($50,000,000) 30
or (ii) fifty percent (50%) of the cost of the eligible project. The maximum amount that can be 31
paid out in a single calendar year for all but the final year of the award term is the lesser of 32
one-tenth of the amount committed or one-half of the costs incurred and verified by the business 33
for that calendar year. 34
SECTION 4.(c) Company Performance Agreement. – For a project to be eligible 35
under this section, a business must commit to the following requirements in addition to thos e 36
contained in G.S. 143B-437.72(b): 37
(1) Invest at least two billion dollars ($2,000,000,000) of private funds in the 38
development or expansion of the manufacturing site served by or located 39
within the same county as the eligible project. 40
(2) For the greater of the term of the agreement or 10 years, create at least 500 41
new jobs having an overall average compensation that exceeds the average 42
wage for all insured private employers in the county in which the eligible 43
project is located and maintain both the new and existing jobs of the business 44
in that county. 45
(3) Annually verify costs incurred for the eligible project. 46
(4) Ensure that the eligible project will supply at least sixty percent (60%) of the 47
total aggregate water and wastewater needs required by the manufacturing site 48
as developed or expanded by the investment made under subdivision (1) of 49
this subsection. 50
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Senate Bill 956-First Edition Page 5
(5) Not seek or accept any other grant from the State, including a grant pursuant 1
to Part 2G of Article 10 of Chapter 143B of the General Statutes, for any jobs 2
created as part of the company performance agreement. 3
SECTION 4.(d) One NC Commitment Exclusion. – The amount committed pursuant 4
to this section shall not be included in calculating the amount authorized to be committed 5
pursuant to G.S. 143B-437.71(b1). 6
SECTION 4.(e) Agreement Binding. – A Governor's Letter issued pursuant to this 7
section is a binding obligation of the State and is not subject to State funds being appropriated 8
by the General Assembly. 9
SECTION 4.(f) Match Requirement. – Notwithstanding G.S. 143B-437.72(c)(1), a 10
local government is not required to match the funds allocated by the State for an eligible project 11
under this section. 12
13
PART V. LIFE SCIENCE AND BIOMANUFACTURING TECHNOLOGIES RESERVE 14
FUND 15
SECTION 5.(a) Initial Capitali zation Transfer. – There is transferred from the 16
General Fund to the Life Science and Biomanufacturing Technologies Reserve Fund established 17
in subsection (b) of this section the sum of twenty million dollars ($20,000,000) in nonrecurring 18
funds for the 2026-2027 fiscal year. 19
SECTION 5.(b) Fund Established; Purpose. – There is created the Life Science and 20
Biomanufacturing Technologies Reserve Fund (the Reserve) to be administered by the Office of 21
State Budget and Management. Funds in the Reserve shall be available only for appropriation by 22
the General Assembly and shall be used to provide State matching funds, cost -share 23
contributions, and other financial support for joint federal, State, local government, and industry 24
initiatives involving emerging life science or biomanufacturing technologies. 25
SECTION 5.(c) Eligible Uses. – Eligible uses of funds from the Reserve include: 26
(1) State matching funds for federal grants or cooperative agreements related to 27
life science research, development, or manufacturing. 28
(2) Cost-share contributions required for competitive federal programs, including 29
programs administered by the National Institutes of Health, the Biomedical 30
Advanced Research and Development Authority (BARDA), the Advanced 31
Research Projects Agency for Healt h (ARPA -H), or the Department of 32
Commerce Economic Development Administration. 33
(3) Financial for public -private partnerships involving life science or 34
biomanufacturing facility development, workforce development, or 35
technology transfer initiatives. 36
(4) Seed funding for multigovernmental consortia or regional innovation hubs 37
focused on biomanufacturing technologies, cell and gene therapy 38
manufacturing, advanced pharmaceutical manufacturing, or related fields. 39
SECTION 5.(d) Appropriation Required. – Funds in the Reserve shall not be 40
expended except upon an act of appropriation by the General Assembly designating the specific 41
initiative, purpose, and amount to be disbursed from the Reserve. 42
SECTION 5.(e) Reporting. – The Director of the Budget shall report to the Joint 43
Legislative Economic Development and Global Engagement Oversight Committee and the Fiscal 44
Research Division no later than March 1 of each fiscal year that funds are appropriated from the 45
Reserve. The report required under this subsection shal l include, at a minimum, the balance of 46
the Reserve, any proposals received for use of Reserve funds, and recommendations regarding 47
capitalization of the Reserve for the ensuing biennium. 48
49
PART VI. EFFECTIVE DATE 50
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 956-First Edition
SECTION 6. Parts 1, 2, 3, and 5 of this act become effective July 1, 2026. Except as 1
otherwise provided, the remainder of this act is effective when it becomes law. 2