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HB 665

Sales Tax Exemption for Motor Vehicles Sold to Veterans

2026 Regular Session Introduced by Kim Daniels

Creates the Public School Disaster Preparedness Fund; DPI administers $25M (nonreverting) to LEAs in high-risk areas to upgrade/replace schools and boost disaster resilience.

Now in Ways & Means Committee
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Bill Summary · HB 665

HB 665 — DPI Disaster Preparedness Fund (Public School Disaster Preparedness Fund)

Status: Passed 1st Reading; effective date July 1, 2025 (as enacted).
Primary sponsor(s): Representatives Greenfield, Ager, G. Brown, Butler (House version); multiple cosponsors.
Appropriation: $25,000,000 nonrecurring from the General Fund to the Department of Public Instruction (DPI) for FY 2025–26 to establish and administer the Fund.

Purpose / Intent

Establishes a new, nonreverting special revenue fund — the Public School Disaster Preparedness Fund — administered by the North Carolina Department of Public Instruction (DPI). The Fund’s purpose is to provide grants to local school administrative units (LEAs) in areas at high risk of natural disasters to improve or replace existing school structures and thereby mitigate damage from future weather events.

Key provisions

  • Creates Article 38D in Chapter 115C (sections §115C‑546.50 through §115C‑546.52).
  • Fund administration:
    • DPI administers the Fund; monies consist of General Assembly appropriations and do not revert at year‑end.
    • $25,000,000 appropriated in 2025–26 for establishment and administration.
  • Allowable uses:
    • Improve or replace existing school structures located in high‑risk disaster areas to reduce future storm/weather damage.
  • Rulemaking and eligibility standards (State Board of Education must adopt rules that, at minimum, include):
    • A system to determine an area’s level of disaster risk.
    • A template for LEAs to prepare a “disaster preparedness plan” identifying structures, risks, and planned improvements/replacements.
    • Standards of increased preparedness expected from funded projects.
    • The method by which the State Board will evaluate plans.
  • Application and approval process:
    • DPI must publish an application; LEAs submit disaster preparedness plans and cost estimates.
    • Applications accepted on a rolling basis and evaluated by DPI’s School Planning Section.
    • The School Planning Section forwards recommendations to the State Board of Education, which votes at its next regularly scheduled meeting. Disbursement occurs only if the State Board approves the application by unanimous vote.
  • Reporting:
    • LEAs receiving funds must report annually (by December 15 each year they have funds) on expenditures/commitments, remaining balances, and project progress.
    • DPI must report annually (by February 15) to the Joint Legislative Education Oversight Committee listing disbursements, recipients, funded plans, progress, and completed plans.

Who is affected

  • Local school administrative units (LEAs) in identified high‑risk disaster areas (applicants and recipients).
  • Department of Public Instruction (administrator/evaluator).
  • State Board of Education (rulemaking and final approval authority).
  • Contractors, architects, and vendors engaged in school improvement/replacement projects.
  • State budget/taxpayers (initial $25M appropriation; future appropriations subject to legislative action).

Timing and process notes

  • Effective July 1, 2025.
  • Initial funding provided as a one‑time, nonrecurring appropriation for FY 2025–26.
  • Applications are reviewed on a rolling basis; State Board must unanimously approve awards at its next regularly scheduled meeting following DPI recommendation.

Potential impacts / considerations

  • Benefits: increases school resilience to natural disasters, reduces future repair/recovery costs, improves student and staff safety, and can limit operational disruptions.
  • Constraints: $25M is a limited initial pool; the unanimous approval requirement may restrict or slow awards; LEAs must prepare formal plans and reporting, creating administrative workload; program scale depends on future legislative appropriations.

Compiled from official sources — confirm details with the bill’s official record.

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