Bill
SB 956
Funds boost life sciences through small business and biotech support, rare-disease coordination, and a new reserve fund to catalyze federal partnerships and manufacturing.
Proponents: Senators Sawrey (primary) and Chaudhuri (primary), with Chitlik as co-sponsor
Jurisdiction: North Carolina
Purpose
- The bill is an omnibus set of life sciences-related appropriations and policy changes. Its central aims are to fund life sciences activities, restructure the state’s approach to advising on rare diseases, support water/sewer–related economic development tied to life sciences, and create a dedicated reserve fund to support life science and biomanufacturing initiatives.
Key Provisions
1) One North Carolina Small Business Account Appropriation (Part I)
- Money: $10,000,000 (recurring) transferred from the General Fund to the Department of Commerce.
- Timing: Beginning in fiscal year 2026-2027.
- Allocation: Funds to be allocated to the One North Carolina Small Business Account (G.S. 143B-437.71).
2) North Carolina Biotechnology Center Appropriation (Part II)
- Money: $2,000,000 (recurring) to the Department of Commerce for the North Carolina Biotechnology Center.
- Timing: Beginning in fiscal year 2026-2027.
- Purposes: Support life science company funding, university technology development, workforce development, and economic development programs administered by the Center.
3) Advisory Council on Rare Diseases (Part III)
- Background: Reforms to Taylor’s Law establishing the Advisory Council on Rare Diseases (G.S. 130A-33.65 et seq.).
- Membership & Structure (Section 3.1):
- Establishment within UNC-Chapel Hill’s School of Medicine, with DHHS and Governor/G.A. oversight.
- Composition: 19 members, including physicians, researchers, a rare-disease survivor, patient org representative, healthcare professionals, industry representatives, insurers, a genetic counselor, and ex officio involvement from legislative chairs and state leaders. The Secretary is an ex officio nonvoting member.
- Appointments: Members appointed by Dean’s recommendations; additional appointments by President Pro Tempore, Speaker, and Governor; ex officio Secretary.
- Terms: Initially three-year terms; limits on consecutive terms; special term lengths for certain appointing authorities.
- Support & Governance: Administrative support provided by UNC-Chapel Hill School of Medicine; Chair selected by the Secretary; first meeting by Oct 1, 2015 (historical text appears in draft; likely intended to align with earlier law and may require conforming edits in final version).
- Meetings: Quorum is a majority; quarterly meetings minimum; more frequent as needed.
- Powers & Duties (Section 3.2):
- Advise on coordination of statewide rare-disease efforts, public awareness, policy issues, and state funding for rare-disease initiatives.
- Annual and ongoing reporting to Secretary, Governor, Joint Legislative Oversight Committee on HHS, and Fiscal Research Division (first report by Jan 1, 2016 and annually thereafter).
- Consult with medical schools, hospitals, and DHHS to develop resources for treatment access and quality.
- Advise on drug utilization, Medicaid-related drug list decisions, and identify additional study areas.
- Operating Budget (Section 3.2):
- New appropriation: $250,000 (recurring) to DHHS beginning in 2026-2027 to cover operating expenses of the Advisory Council on Rare Diseases.
4) Water and Sewer Economic Development Program (Part IV)
- Authority: Dept. of Commerce may reimburse a business for eligible water/sewer project costs via a Governor’s Letter, under Part 2H of Article 10, Chapter 143B.
- Eligible Projects: Construction/improvement of water or sewer lines/facilities/equipment for manufacturing-related sites; water reuse/reclamation projects allowed if tied to a performance agreement.
- Funding Cap: Up to $50 million total commitment or 50% of project costs, whichever is less.
- Annual Payout: In the first years (excluding final year), no more than 1/10 of the committed amount or 1/2 of annual costs incurred, whichever is smaller.
- Requirements for Projects:
- Private investment: At least $2 billion in private funds for the related site.
- Job creation: At least 500 new jobs, with average wages above the county’s average wage, sustained for the term or 10 years.
- Verification: Annual verification of costs.
- Water supply: Project must meet at least 60% of the site’s total water/wastewater needs.
- No stacking of other State grants for the same jobs.
- Local Match: Local governments are not required to provide a match for these State funds.
- Binding Obligation: Governor’s Letters are binding and not contingent on general fund appropriations.
5) Life Science and Biomanufacturing Technologies Reserve Fund (Part V)
- Initial Capitalization: $20,000,000 (nonrecurring) transferred from the General Fund to the Reserve for the 2026-2027 fiscal year.
- Purpose & Management: A fund administered by the Office of State Budget and Management to support joint federal/state/local/industry initiatives in emerging life science or biomanufacturing technologies.
- Eligible Uses:
- State matching funds for federal grants or cooperative agreements in life science R&D/manufacturing.
- Cost-share contributions for federal programs (e.g., NIH, BARDA, ARPA-H, EDA).
- Public-private partnerships for facility development, workforce development, or technology transfer.
- Seed funding for multi-government consortia or regional innovation hubs in relevant fields.
- Appropriation Requirement: Funds may only be expended via an act of appropriation specifying the purpose and amount.
- Reporting: The Budget Director must report annually, by March 1, on reserve balance, proposals, and capitalization recommendations.
Effective Date (Part VI)
- Most parts become effective July 1, 2026, with other provisions taking effect as provided in the act.
Potential Impact
Compiled from official sources — confirm details with the bill’s official record.
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