Bill
HB 1078
The bill establishes new funding and programs to grow North Carolina's life sciences sector, including a Reserve Fund to leverage federal/public partnerships and support for bioman
Purpose
- The bill authorizes a series of appropriations and structural changes to support life sciences, biotechnology, biomanufacturing, and related healthcare initiatives in North Carolina. It also revises the advisory framework for rare diseases and establishes a dedicated reserve fund to advance life science and biomanufacturing efforts.
Key Provisions
1) One North Carolina Small Business Account (Part I)
- Appropriates $10,000,000 in recurring General Fund funds to the Department of Commerce, starting in the 2026–2027 fiscal year.
- Funds are allocated to the One North Carolina Small Business Account (per G.S. 143B-437.71) to support small business development.
2) North Carolina Biotechnology Center Appropriation (Part II)
- Allocates $2,000,000 in recurring General Fund funds to the Department of Commerce for the North Carolina Biotechnology Center.
- Purpose: support life science company funding, university technology development, workforce development, and economic development programs administered by the Center.
3) Advisory Council on Rare Diseases (Taylor’s Law) (Part III)
- Reconstitutes and amends the statutory framework for the Advisory Council on Rare Diseases within UNC School of Medicine, DHHS, and related state entities.
- Membership: 19 members, including physicians, researchers, nurses, survivors, patient advocates, industry representatives, payor representatives, a genetic counselor, and others, with specific appointment provisions (including appointments by Senate/House leadership and the Governor). The Secretary also serves as an ex officio nonvoting member.
- Term structure: initial terms are three years, with limits on consecutive terms; subsequent terms vary by appointing authority (2–4 years).
- Support and governance: administrative support provided by UNC-Chapel Hill School of Medicine; chair appointed by the Secretary from among members; first meeting by Oct. 1, 2015 (note: date appears pre-2016 in text and may reflect drafting inaccuracy).
- Powers and duties: advise on statewide coordination for rare diseases, public awareness, policy issues, state funding, and collaboration with medical schools and health systems; annual and periodic reporting (notably a required report by Jan 1, 2016 and annually thereafter); collaborate on treatment access and quality.
- Operating funds: Section 3.2 appropriates $250,000 recurring to DHHS beginning 2026–2027 to cover operating expenses of the advisory council.
4) Water and Sewer Economic Development Program (Part IV)
- Permits Department of Commerce to reimburse, via Governor’s Letter, eligible water/sewer infrastructure projects for businesses over a term not less than 10 years.
- Eligibility cap: up to $50 million total or 50% of project cost, with annual payout limits (generally limited to 10% of committed amount or 50% of annual costs, except for the final year).
- Required company performance: (1) invest at least $2 billion private funds in the manufacturing site; (2) create and maintain at least 500 new jobs with wages above county average; (3) annually verify costs; (4) ensure 60% of water/wastewater needs are supplied by the project; (5) no additional state grants for these jobs.
- Local government match not required for these awards.
5) Life Science and Biomanufacturing Technologies Reserve Fund (Part V)
- Initial capitalization: $20,000,000 from the General Fund to create a Reserve Fund (administered by the Office of State Budget and Management).
- Purpose: provide state matching funds, cost-share contributions, and support for joint federal/state/local industry initiatives involving emerging life science or biomanufacturing technologies.
- Eligible uses: state matching funds for federal grants, cost-share for competitive federal programs (e.g., NIH, BARDA, ARPA-H, EDA), public-private partnerships, and seed funding for regional innovation or consortia.
- Appropriation requirement: funds from the Reserve may only be expended via a General Assembly appropriation specifying purpose and amount.
- Reporting: Budget Director must report annually (by March 1) on balance, proposals, and capitalization recommendations.
Effective Date
- Parts I, II, III, and V become effective July 1, 2026. Other provisions take effect as provided or upon enactment.
Impact and Coverage
- Targets economic development and job creation in life sciences and biomanufacturing.
- Strengthens state capacity for rare-disease research, diagnosis, treatment, and advocacy.
- Provides new funding streams for the NC Biotechnology Center and for infrastructure-related economic development tied to water and sewer projects.
- Establishes a formal reserve to leverage federal funds and public-private partnerships in life sciences.
Note: Some text references dates (e.g., first advisory council meeting by 2015) that may reflect drafting anchors; official enactment would supersede any such historical dates.
Compiled from official sources — confirm details with the bill’s official record.
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