Regulon — NC-S-988 · NC SB 988 (Protecting Workers in the Age of AI Act)

Summary

Establishes the Artificial Intelligence Workforce Transition Program and AI Workforce Transition Fund within the North Carolina Department of Commerce, funded by a $50 million transfer from unencumbered opportunity scholarship grant funds. The Program provides funding for job retraining, credentialing, and workforce education for workers displaced by AI or automation, with priority for healthcare, advanced manufacturing, infrastructure, and skilled trades training. Employers receiving state economic incentives must report layoffs attributable to automation or AI to the Department. The bill authorizes the Department to partner with community colleges, workforce boards, and apprenticeship programs and authorizes the State Board of Community Colleges to partner with the Department to implement the Program. No enforcement mechanism, penalties, or private right of action are established.

Enforcement & Penalties

Enforcement Authority

The Department of Commerce administers the Artificial Intelligence Workforce Transition Program and receives employer layoff reports. No enforcement mechanism, penalty, or private right of action is specified in the bill. The statute does not designate any agency or individual with enforcement authority over the reporting obligation or any other provision.

Penalties

No penalties, damages, or remedies of any kind are specified in the bill.

Who Is Covered

Compliance Obligations 5 obligations · click obligation ID to open requirement page

Other · Government · Employment

G.S. § 143B-438.14A(a)-(b)

Plain Language

This provision creates a government workforce transition program and fund within the Department of Commerce. It establishes the programmatic infrastructure for supporting displaced workers but imposes no compliance obligation on private entities. It is a legislative authorization and purpose statement for a government spending program.

Statutory Text

(a) There is established within the Department of Commerce the Artificial Intelligence Workforce Transition Program (Program) and the AI Workforce Transition Fund (Fund). (b) The purpose of the Program is to allocate funding to support workers displaced due to artificial intelligence or automation. Appropriations from the Fund shall be used for job retraining, credentialing programs, and workforce education. Funding shall be prioritized for training programs in health care, advanced manufacturing, infrastructure, and other skilled trades.

R-03 Operational Performance Reporting · Deployer · Employment

G.S. § 143B-438.14A(c)

Plain Language

Employers that receive North Carolina state economic incentives must report to the Department of Commerce any layoffs that are attributable to automation or artificial intelligence. The bill does not specify the timing, format, frequency, or content of these reports, nor does it establish any penalty for failure to report. The obligation is limited to employers receiving state economic incentives — employers that do not receive such incentives are not covered.

Statutory Text

Employers receiving State economic incentives shall report to the Department layoffs attributable to automation or artificial intelligence.

Other · Government · Employment

G.S. § 143B-438.14A(d)

Plain Language

This provision authorizes — but does not require — the Department of Commerce to partner with community colleges, workforce boards, and apprenticeship programs to implement the workforce transition program. It is a permissive government authorization that creates no compliance obligation for any private entity.

Statutory Text

The Department may engage in partnerships with community colleges, workforce boards, and apprenticeship programs to carry out the purposes of this section.

Other · Government · EmploymentEducation

G.S. § 115D-20(16)

Plain Language

This provision adds to the State Board of Community Colleges' enumerated powers the authority to partner with the Department of Commerce on the AI Workforce Transition Program. It is a permissive government authorization creating no new compliance obligation for any private entity.

Statutory Text

(16) To partner with the Department of Commerce to implement the Artificial Intelligence Workforce Transition Program pursuant to G.S. 143B-438.14A.

Other · Government · Employment

Section 4

Plain Language

This is a one-time appropriations provision directing the State Education Assistance Authority to transfer $50 million in unencumbered opportunity scholarship funds to the Department of Commerce to seed the AI Workforce Transition Fund. It is a government fiscal instruction that creates no compliance obligation for any private entity.

Statutory Text

Notwithstanding G.S. 115C-562.8 and any other provision of law to the contrary, the State Education Assistance Authority shall transfer to the Department of Commerce the sum of fifty million dollars ($50,000,000) in unencumbered, nonrecurring funds remaining at the end of the 2025-2026 fiscal year that would otherwise be carried forward in the 2026-2027 fiscal year for the award of opportunity scholarship grants pursuant to G.S. 115C-562.8(d)(2). These funds are hereby appropriated to the Department of Commerce for the 2026-2027 fiscal year to establish the AI Workforce Transition Fund created in this act and to provide grants to community colleges and workforce training providers.