GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                    1

HOUSE BILL 823

 

 

Short Title:        Governance of the Dep't of Public Instruction.		(Public)
Sponsors:	Representatives Holloway, Hilton, Brubaker, and Blackwell (Primary Sponsors). For a complete list of Sponsors, see Bill Information on the NCGA Web Site.
Referred to:	Education, if favorable, Judiciary, if favorable, Finance.

April 7, 2011

A BILL TO BE ENTITLED

AN ACT TO AMEND THE north carolina CONSTITUTION TO MAKE THE SUPERINTENDENT OF PUBLIC INSTRUCTION the head of the department of public instruction, to make the state board of education an advisory body, to modify the membership of the state board of education, and to make conforming changes to the general statutes.

The General Assembly of North Carolina enacts:

 

amendments to the constitution

 

SECTION 1.(a)  Section 4 of Article IX of the North Carolina Constitution reads as rewritten:

"Sec. 4.  State Board of Education.Superintendent of Public Instruction.

(1)        Board. The State Board of Education shall consist of the Lieutenant Governor, the Treasurer, and eleven members appointed by the Governor, subject to confirmation by the General Assembly in joint session. The General Assembly shall divide the State into eight educational districts. Of the appointive members of the Board, one shall be appointed from each of the eight educational districts and three shall be appointed from the State at large. Appointments shall be for overlapping terms of eight years. Appointments to fill vacancies shall be made by the Governor for the unexpired terms and shall not be subject to confirmation.

(2)        Superintendent of Public Instruction. The Superintendent of Public Instruction shall be the secretary and chief administrative officer of the State Board of Education. head of the Department of Public Instruction. The Superintendent of Public Instruction shall supervise and administer the free public school system and the educational funds provided for its support, except the funds mentioned in Section 7 of this Article, and shall make all needed rules and regulations in relation thereto, subject to laws enacted by the General Assembly.

SECTION 1.(b)  Section 5 of Article IX of the North Carolina Constitution reads as rewritten:

"Sec. 5.  Powers and duties of Board.State Board of Education.

(1)        The State Board of Education shall consist of the Lieutenant Governor, the Treasurer, the Superintendent of Public Instruction, three members appointed by the Governor, four members appointed by the Speaker of the House of Representatives, and four members appointed by the President Pro Tempore of the Senate. Appointments shall be for overlapping terms of eight years. Appointments to fill vacancies shall be made by the appointing officer for the unexpired terms.

The State Board of Education shall supervise and administeradvise the Superintendent of Public Instruction on the supervision and administration of the free public school system and the educational funds provided for its support, except the funds mentioned in Section 7 of this Article, and shall make all needed rules and regulations in relation thereto, subject to laws enacted by the General Assembly.support."

SECTION 2.  The amendments set out in Section 1 of this act shall be submitted to the qualified voters of the State at a statewide election to be conducted on November 6, 2012, which election shall be conducted under the laws then governing elections in the State. Ballots, voting systems, or both may be used in accordance with Chapter 163 of the General Statutes. The question to be used in the voting systems and ballots shall be:

"[ ] FOR           [ ] AGAINST

Constitutional amendments to make the Superintendent of Public Instruction the head of the Department of Public Instruction, to make the State Board of Education an advisory body, and to modify the membership of the State Board of Education."

SECTION 3.  If a majority of votes cast on the question are in favor of the amendments set out in Section 1 of this act, the State Board of Elections shall certify the amendments to the Secretary of State. The Secretary of State shall enroll the amendments so certified among the permanent records of that office. The amendments set out in Section 1 of this act shall become effective January 1, 2013.

 

conforming changes to statutes

 

SECTION 4.  G.S. 143A-44.1 reads as rewritten:

"§ 143A-44.1.  Creation.

There is hereby created a Department of Public Instruction. The head of the Department of Public Instruction is the State Board of Education.Superintendent of Public Instruction.Any provision of G.S. 143A-9 to the contrary notwithstanding, the appointment of the State Board of Education shall be as prescribed in Article IX, Section (4)(1) of the Constitution."

SECTION 5.  G.S. 143A-44.2 reads as rewritten:

"§ 143A-44.2.  State Board of Education; Superintendent of Public Instruction; transfer of powers and duties to State Board.Superintendent.

(a)        The State Board of Education Superintendent of Public Instruction shall have all powers and duties conferred on the Boardthat office by this Article, delegated to the Board by the Governor, and conferred by the Constitution and laws of this State.

(b)        The Superintendent of Public Instruction shall be considered a continuation of the State Board of Education for the purpose of succession to all rights, powers, duties, and obligations of the State Board of Education and of those rights, powers, duties, and obligations exercised by the State Board of Education on behalf of the Department of Public Instruction. Where the State Board of Education is referred to by law, contract, or other document, that reference shall apply to the Superintendent."

SECTION 6.  G.S. 143A-44.3 reads as rewritten:

"§ 143A-44.3.  Superintendent of Public Instruction;State Board of Education; creation; transfer of powers and duties.creation.

The office of the Superintendent of Public Instruction,State Board of Education as provided for by Article III, Section 7Article IX, Section 4 of the Constitution, and the Department of Public Instruction areConstitution, is transferred to located in the Department of Public Instruction. The Superintendent of Public Instruction shall be the Secretary and Chief Administrative Officer of the State Board of Education, State Board of Education shall advise the Superintendent of Public Instruction on the supervision and administration of the free public school system and the educational funds provided for its support and shall have all powers and duties conferred by the Constitution, by the State Board of Education,Superintendent of Public Instruction, Chapter 115C of the General Statutes, and the laws of this State."

SECTION 7.  G.S. 115C-10 reads as rewritten:

"§ 115C-10.  Appointment of Board; powers and duties.

(a)        The State Board of Education shall consist of the Lieutenant Governor, the State Treasurer, the Superintendent of Public Instruction, three members appointed by the Governor, four members appointed by the Speaker of the House of Representatives, and four members appointed by the President Pro Tempore of the Senate. Appointments shall be for overlapping terms of eight years. Appointments to fill vacancies shall be made by the appointing officer for the unexpired terms. and 11 members appointed by the Governor, subject to confirmation by the General Assembly in joint session. Not more than two public school employees paid from State or local funds may serve as appointive members of the State Board of Education. No spouse of any public school employee paid from State or local funds and no spouse of any employee of the Department of Public Instruction may serve as an appointive member of the State Board of Education. Of the appointive members of the State Board of Education, one shall be appointed from each of the eight educational districts and three shall be appointed as members at large. Appointments shall be for terms of eight years and shall be made in four classes. Appointments to fill vacancies shall be made by the Governor for the unexpired terms and shall not be subject to confirmation.

The Governor shall transmit to the presiding officers of the Senate and the House of Representatives, on or before the sixtieth legislative day of the General Assembly, the names of the persons appointed by the Governor and submitted to the General Assembly for confirmation; thereafter, pursuant to joint resolution, the Senate and the House of Representatives shall meet in joint session for consideration of an action upon such appointments.

(b)        The State Board of Education shall advise the Superintendent of Public Instruction on the supervision and administration of the free public school system and the educational funds provided for its support."

SECTION 8.  G.S. 115C-11 reads as rewritten:

"§ 115C-11.  Organization and internal procedures of Board.

(a)        Presiding Officer. - The Superintendent of Public Instruction shall be the chair of the State Board of Education. The State Board of Education shall elect from its membership a chairman and vice-chairman. vice-chair. A majority of the Board shall constitute a quorum for the transaction of business. Per diem and expenses of the appointive members of the Board shall be provided by the General Assembly. The chairman of the Board shall preside at all meetings of the Board. In the absence of the chairman, the vice-chairman vice-chair shall preside; in the absence of both the chairman and the vice-chairman, vice-chair, the Board shall name one of its own members as chairman pro tempore.

…

(e)        Voting on Adoption of Textbooks. - A majority vote of the whole membership of the Board shall be required to adopt textbooks, and a roll call vote shall be had on each motion for such adoption or adoptions. A record of all such votes shall be kept in the minute book.

(f)         Committees. - The Board may create from its membership such committees as it deems necessary to facilitate its business. The chairman of the Board shall with approval of the majority of the Board appoint members to the several committees authorized by the Board and to any additional committees which the chairman may deem to be appropriate.

…

(h)        Rules and Regulations. - The Board shall adopt reasonable rules and regulations not inconsistent herewith, to govern its proceedings which the Board may amend from time to time, which rules and regulations shall become effective when filed as provided by law: Provided, however, a motion to suspend the rules so adopted shall require a consent of two-thirds of the members. The rules and regulations shall include, but not be limited to, clearly defined procedures for electing the officers of the State Board referred to in G.S. 115C-11(a), vice-chair of the board, fixing the term of said officers, officer, specifying how the voting shall be carried out, and establishing a date when the first election shall be held."

SECTION 9.  G.S. 115C-12.1 reads as rewritten:

"§ 115C-12.1.  Training of State Board members.

The State Board of Education Superintendent of Public Instruction shall establish minimum training requirements for members of the State Board of Education. All Board members shall participate in training programs, as required by the State Board."

SECTION 10.  G.S. 115C-19 reads as rewritten:

"§ 115C-19.  Chief administrative officer of the State Board of Education.Powers and duties generally.

(a)        As provided in Article IX, Sec. 4(2) Sec. 4 of the North Carolina Constitution, the Superintendent of Public Instruction shall be the secretary and chief administrative officer of the State Board of Education. As secretary and chief administrative officer of the State Board of Education, the Superintendent manages on a day-to-day basis the administration of the free public school system, subject to the direction, control, and approval of the State Board. Subject to the direction, control, and approval of the State Board of Education, the Superintendent of Public Instruction shall carry out the duties prescribed under G.S. 115C-21. head of the Department of Public Instruction. The Superintendent of Public Instruction shall supervise and administer the free public school system and the educational funds provided for its support, except the funds mentioned in Section 7 of this Article, and shall make all needed rules and regulations in relation thereto, subject to laws enacted by the General Assembly.

(b)        The Superintendent shall be responsible for organizing the Department of Public Instruction to ensure its efficient and effective operation.

(c)        The Superintendent of Public Instruction may assign or reassign any function vested in the Superintendent or in the Department of Public Instruction to any subordinate officer or employee of the Department."

SECTION 11.  G.S. 115C-21 is repealed.

SECTION 12.  G.S. 115C-12 is recodified as G.S. 115C-23. G.S. 115C-23 reads as rewritten:

"§ 115C-23.  Powers and duties of the Board Superintendent generally.

The general supervision and administration of the free public school system shall be vested in the State Board of Education. Superintendent of Public Instruction. The State Board of Education Superintendent of Public Instruction shall establish policy for the system of free public schools, subject to laws enacted by the General Assembly. The powers and duties of the State Board of EducationSuperintendent of Public Instruction are defined as follows:

(1)        Financial Powers. - The financial powers of the Superintendent of Public InstructionBoard are set forth in Article 30 of this Chapter.

(1a)      To Submit a Budget Request to the Director of the Budget. - The Board Superintendent of Public Instruction shall submit a budget request to the Director of the Budget in accordance with G.S. 143C-3-3. In addition to the information requested by the Director of the Budget, the Board Superintendent shall provide an analysis relating each of its the requests for expansion funds to anticipated improvements in student performance.

(2)        Repealed by Session Laws 1985 (Regular Session, 1986), c. 975, s. 24.

(3),       (4) Repealed by Session Laws 1987 (Regular Session, 1988), c. 1025, s. 1.

(5)        Apportionment of Funds. - The Board Superintendent of Public Instruction shall have authority to apportion and equalize over the State all State school funds and all federal funds granted to the State for assistance to educational programs administered within or sponsored by the public school system of the State.

(6)        Power to Demand Refund for Inaccurate Apportionment Due to False Attendance Records. - When it shall be found by the State Board of Education Superintendent of Public Instruction that inaccurate attendance records have been filed with the State Board of Education Superintendent of Public Instruction which resulted in an excess allotment of funds for teacher salaries in any school unit in any school year, the school unit concerned may be required to refund to the State Board Superintendent of Public Instruction the amount allotted to said unit in excess of the amount an accurate attendance record would have justified.

(7)        Power to Alter the Boundaries of City School Administrative Units and to Approve Agreements for the Consolidation and Merger of School Administrative Units Located in the Same County. - The Board Superintendent of Public Instruction shall have authority, in its his or her discretion, to alter the boundaries of city school administrative units and to approve agreements submitted by county and city boards of education requesting the merger of two or more contiguous city school administrative units and the merger of city school administrative units with county school administrative units and the consolidation of all the public schools in the respective units under the administration of one board of education: Provided, that such merger of units and reorganization of school units shall not have the effect of abolishing any special taxes that may have been voted in any such units.

(8)        Power to Make Provisions for Sick Leave and for Substitute Teachers. - The Board Superintendent of Public Instruction shall provide for sick leave with pay for all public school employees in accordance with the provisions of this Chapter and shall promulgate rules and regulations providing for necessary substitutes on account of sick leave and other teacher absences.

The minimum pay for a substitute teacher who holds a teaching certificate shall be sixty-five percent (65%) of the daily pay rate of an entry-level teacher with an "A" certificate. The minimum pay for a substitute teacher who does not hold a teaching certificate shall be fifty percent (50%) of the daily pay rate of an entry-level teacher with an "A" certificate. The pay for noncertified substitutes shall not exceed the pay of certified substitutes.

Local boards may use State funds allocated for substitute teachers to hire full-time substitute teachers.

If a teacher assistant acts as a substitute teacher, the salary of the teacher assistant for the day shall be the same as the daily salary of an entry-level teacher with an "A" certificate.

(9)        Miscellaneous Powers and Duties. - All the powers and duties exercised by the State Board of Education Superintendent of Public Instruction shall be in conformity with the Constitution and subject to such laws as may be enacted from time to time by the General Assembly. Among such duties are:

a.         To certify and regulate the grade and salary of teachers and other school employees.

b.         To adopt and supply textbooks.

c.         To adopt rules requiring all local boards of education to implement the Basic Education Program on an incremental basis within funds appropriated for that purpose by the General Assembly and by units of local government. Beginning with the 1991-92 school year, the rules shall require each local school administrative unit to implement fully the standard course of study in every school in the State in accordance with the Basic Education Program so that every student in the State shall have equal access to the curriculum as provided in the Basic Education Program and the standard course of study.

The Board Superintendent of Public Instruction shall establish benchmarks by which to measure the progress that each local board of education has made in implementing the Basic Education Program.

c1.       To issue an annual "report card" for the State and for each local school administrative unit, assessing each unit's efforts to improve student performance based on the growth in performance of the students in each school and taking into account progress over the previous years' level of performance and the State's performance in comparison with other states. This assessment shall take into account factors that have been shown to affect student performance and that the State Board Superintendent considers relevant to assess the State's efforts to improve student performance.

c2.       Repealed by Session Laws 1995 (Regular Session, 1996), c. 716, s. 1.

c3.       To develop a system of school building improvement reports for each school building. The purpose of school building improvement reports is to measure improvement in the growth in student performance at each school building from year to year, not to compare school buildings. The Board Superintendent shall include in the building reports any factors shown to affect student performance that the Board Superintendent considers relevant to assess a school's efforts to improve student performance. Local school administrative units shall produce and make public their school building improvement reports by March 15, 1997, for the 1995-96 school year, by October 15, 1997, for the 1996-97 school year, and annually thereafter. Each report shall be based on building-level data for the prior school year.

c4.       To develop guidelines, procedures, and rules to establish, implement, and enforce the School-Based Management and Accountability Program under Article 8B of this Chapter in order to improve student performance, increase local flexibility and control, and promote economy and efficiency.

d.         To formulate rules and regulations for the enforcement of the compulsory attendance law.

e.         To manage and operate a system of insurance for public school property, as provided in Article 38 of this Chapter.

In making substantial policy changes in administration, curriculum, or programs the Board Superintendent should conduct hearings throughout the regions of the State, whenever feasible, in order that the public may be heard regarding these matters.

(9a),     (9b) Repealed by Session Laws 2005-458, s. 1, effective October 2, 2005.

(9c)      Power to Develop Content Standards and Exit Standards. - The Board Superintendent of Public Instruction shall develop a comprehensive plan to revise content standards and the standard course of study in the core academic areas of reading, writing, mathematics, science, history, geography, and civics. The Board Superintendent shall involve and survey a representative sample of parents, teachers, and the public to help determine academic content standard priorities and usefulness of the content standards. A full review of available and relevant academic content standards that are rigorous, specific, sequenced, clear, focused, and measurable, whenever possible, shall be a part of the process of the development of content standards. The revised content standards developed in the core academic areas shall (i) reflect high expectations for students and an in-depth mastery of the content; (ii) be clearly grounded in the content of each academic area; (iii) be defined grade-by-grade and course-by-course; (iv) be understandable to parents and teachers; (v) be developed in full recognition of the time available to teach the core academic areas at each grade level; and (vi) be measurable, whenever possible, in a reliable, valid, and efficient manner for accountability purposes.

High school course content standards shall include the knowledge and skills necessary to pursue further postsecondary education or to attain employment in the 21st century economy. The high school course content standards also shall be aligned with the minimum undergraduate course requirements for admission to the constituent institutions of The University of North Carolina. The Board Superintendent may develop exit standards that will be required for high school graduation.

The Board Superintendent also shall develop and implement an ongoing process to align State programs and support materials with the revised academic content standards for each core academic area on a regular basis. Alignment shall include revising textbook criteria, support materials, State tests, teacher and school administrator preparation, and ongoing professional development programs to be compatible with content standards. The Board Superintendent shall develop and make available to teachers and parents support materials, including teacher and parent guides, for academic content standards. The State Board of Education Superintendent shall work in collaboration with the Board of Governors of The University of North Carolina to ensure that teacher and school administrator degree programs, ongoing professional development, and other university activity in the State's public schools align with the State Board's Superintendent's priorities.

(10)      Power to Provide for Programs or Projects in the Cultural and Fine Arts Areas. - The Board Superintendent of Public Instruction is authorized and empowered, in its his or her discretion, to make provisions for special programs or projects of a cultural and fine arts nature for the enrichment and strengthening of educational opportunities for the children of the State.

For this purpose, the Board Superintendent may use funds received from gifts or grants and, with the approval of the Director of the Budget, may use State funds which the Board Superintendent may find available in any budget administered by the Board.Superintendent.

(11)      Power to Conduct Education Research. - The Board Superintendent of Public Instruction is authorized to sponsor or conduct education research and special school projects considered important by the Board Superintendent for improving the public schools of the State. Such research or projects may be conducted during the summer months and involve one or more local school units as the Board Superintendent may determine. The Board Superintendent may use any available funds for such purposes.

(12)      Duty to Provide for Sports Medicine and Emergency Paramedical Program. - The State Board of Education Superintendent of Public Instruction is authorized and directed to develop a comprehensive plan to train and make available to the public schools personnel who shall have major responsibility for exercising preventive measures against sports related deaths and injuries and for providing sports medicine and emergency paramedical services for injuries that occur in school related activities. The plan shall include, but is not limited to, the training, assignment of responsibilities, and appropriate additional reimbursement for individuals participating in the program.

The State Board of Education Superintendent is authorized and directed to develop an implementation schedule and a program funding formula that will enable each high school to have a qualified sports medicine and emergency paramedical program by July 1, 1984.

The State Board of Education Superintendent is authorized and directed to establish minimum educational standards necessary to enable individuals serving as sports medicine and emergency paramedical staff to provide such services, including first aid and emergency life saving skills, to students participating in school activities.

(13)      Power to Purchase Liability Insurance. - The Board Superintendent of Public Instruction is authorized to purchase insurance to protect board membersthe Superintendent from liability incurred in the exercise of their duty as members of the Board. the Superintendent's official duties.

(14)      Duty to Provide Personnel Information to Local Boards. - Upon request, the State Board of Education Superintendent of Public Instruction and the Department of Public Instruction shall furnish to any county or city board of education any and all available personnel information relating to certification, evaluation and qualification including, but not limited to, semester hours or quarterly hours completed, graduate work, grades, scores, etc., that are on that date in the files of the State Board of Education or Department of Public Instruction.

(15)      Duty to Develop Noncertified Personnel Position Evaluation Descriptions. - The Board Superintendent of Public Instruction is authorized and directed to develop position evaluation descriptions covering those positions in local school administrative units for which certification by the State Board of EducationSuperintendent is not normally a prerequisite. The position evaluation descriptions required in this subdivision are to be used by local boards of education as the basis for assignment of noncertified employees to an appropriate pay grade in accordance with salary grades and ranges adopted by the State Board of Education. Superintendent. No appropriations are required by this subdivision.

(16)      Power with Regard to Salary Schedules. - The Board Superintendent of Public Instruction shall provide for sick leave with pay for all public school employees in accordance with the provisions of this Chapter and shall promulgate rules and regulations providing for necessary substitutes on account of sick leave and other teacher absences.

a.         Support personnel refers to all public school employees who are not required by statute or regulation to be certified in order to be employed. The State Board of Education Superintendent is authorized and empowered to adopt all necessary rules for full implementation of all schedules to the extent that State funds are made available for support personnel.

b.         Salary schedules for the following public school support personnel shall be adopted by the Superintendent; State Board of Education: school finance officer, office support personnel, teacher assistants, maintenance supervisors, custodial personnel, and transportation personnel. The Board Superintendent shall classify these support positions in terms of uniform pay grades included in the salary schedule of the State Personnel Commission.

By the end of the third payroll period of the 1995-96 fiscal year, local boards of education shall place State-allotted office support personnel, teacher assistants, and custodial personnel on the salary schedule adopted by the State Board of Education Superintendent that the average salary paid is the State-allotted amount for the category. In placing employees on the salary schedule, the local board shall consider the education, training, and experience of each employee, including experience in other local school administrative units. It is the intent of the General Assembly that a local school administrative unit not fail to employ an employee who was employed for the prior school year in order to implement the provisions of this sub-subdivision. A local board of education is in compliance with this sub-subdivision if the average salary paid is at least ninety-five percent (95%) of the State-allotted amount for the category at the end of the third payroll period of the 1995-96 fiscal year, and at least ninety-eight percent (98%) of the State-allotted amount for the category at the end of the third payroll period of each subsequent fiscal year. The Department of Public Instruction shall provide technical assistance to local school administrative units regarding the implementation of this sub-subdivision.

c.         Salary schedules for other support personnel, including but not limited to maintenance and school food service personnel, shall be adopted by the State Board of Education. Superintendent. The Board Superintendent shall classify these support positions in terms of uniform pay grades included in the salary schedule of the State Personnel Commission. These schedules shall apply if the local board of education does not adopt a salary schedule of its own for personnel paid from other than State appropriations.

(17)      Power to provide for school transportation programs. The State Board of Education Superintendent of Public Instruction is authorized and empowered to promulgate such policies, rules, and regulations as it may deem necessary and desirable for the operation of a public school transportation system by each local administrative unit in the State. Such policies, rules, and regulations shall include, but are not limited to, fund allocations and fiscal support to assure the effective and efficient use of funds appropriated by the General Assembly in support of the school transportation system. Nothing herein shall be construed to affect in any way or to lessen in any way the full and complete authority of local boards of education to assign pupils to schools in accordance with G.S. 115C-366.

(18)      Duty to Develop and Implement a Uniform Education Reporting System, Which Shall Include Standards and Procedures for Collecting Fiscal and Personnel Information.

a.         The State Board of Education Superintendent of Public Instruction shall adopt standards and procedures for local school administrative units to provide timely, accurate, and complete fiscal and personnel information, including payroll information, on all school personnel. All local school administrative units shall comply with these standards and procedures by the beginning of the 1987-88 school year.

b.         The State Board of Education Superintendent shall develop and implement a Uniform Education Reporting System that shall include requirements for collecting, processing, and reporting fiscal, personnel, and student data, by means of electronic transfer of data files from local computers to the State Computer Center through the State Communications Network. All local school administrative units shall comply with the requirements of the Uniform Education Reporting System by the beginning of the 1989-90 school year.

c.         The State Board of Education Superintendent shall comply with the provisions of G.S. 116-11(10a) to plan and implement an exchange of information between the public schools and the institutions of higher education in the State. The State Board of Education Superintendent shall require local boards of education to provide to the parents of children at a school all information except for confidential information received about that school from institutions of higher education pursuant to G.S. 116-11(10a) and to make that information available to the general public.

d.         The State Board of Education Superintendent shall modify the Uniform Education Reporting System to provide clear, accurate, and standard information on the use of funds at the unit and school level. The plan shall provide information that will enable the General Assembly to determine State, local, and federal expenditures for personnel at the unit and school level. The plan also shall allow the tracking of expenditures for textbooks, educational supplies and equipment, capital outlay, at-risk students, and other purposes. The revised Uniform Education Reporting System shall be implemented beginning with the 1999-2000 school year.

(19)      Duty to Identify Required Reports and to Eliminate Unnecessary Reports and Paperwork. - Prior to the beginning of each school year, the State Board of Education Superintendent of Public Instruction shall identify all reports that are required at the State level for the school year.

The State Board of Education Superintendent shall adopt policies to ensure that local school administrative units are not required by the State Board of Education, the State Superintendent, the Superintendent or the Department of Public Instruction staff to (i) provide information that is already available on the student information management system or housed within the Department of Public Instruction; (ii) provide the same written information more than once during a school year unless the information has changed during the ensuing period; or (iii) complete forms, for children with disabilities, that are not necessary to ensure compliance with the federal Individuals with Disabilities Education Act (IDEA). Notwithstanding the foregoing, the State Board Superintendent may require information available on its the student information management system or require the same information twice if the State BoardSuperintendent can demonstrate a compelling need and can demonstrate there is not a more expeditious manner of getting the information.

(20)      Duty to Report Appointment of Caretaker Administrators and Boards. - Pursuant to G.S. 120-30.9G the State Board of Education Superintendent shall submit to the Attorney General of the United States within 30 days any rules, policies, procedures, or actions taken pursuant to G.S. 115C-64.4 which could result in the appointment of a caretaker administrator or board to perform any of the powers and duties of a local board of education where that school administrative unit is covered by the Voting Rights Act of 1965.

(21)      Duty to Monitor Acts of School Violence. - The State Board of Education Superintendent of Public Instruction shall monitor and compile an annual report on acts of violence in the public schools. The State Board Superintendent shall adopt standard definitions for acts of school violence and shall require local boards of education to report them to the State BoardSuperintendent in a standard format adopted by the State Board.Superintendent. The State Board Superintendent shall submit its the report on acts of violence in the public schools to the Joint Legislative Education Oversight Committee by March 15 of each year.

(22)      Duty to Monitor the Decisions of Teachers to Leave the Teaching Profession. - The State Board of Education Superintendent of Public Instruction shall monitor and compile an annual report on the decisions of teachers to leave the teaching profession. The State Board Superintendent shall adopt standard procedures for each local board of education to use in requesting the information from teachers who are not continuing to work as teachers in the local school administrative unit and shall require each local board of education to report the information to the State Board Superintendent in a standard format adopted by the State Board.Superintendent.

(23)      Power to Adopt Eligibility Rules for Interscholastic Athletic Competition. - The State Board of Education Superintendent of Public Instruction may adopt rules governing interscholastic athletic activities conducted by local boards of education, including eligibility for student participation. The Superintendent State Board of Education may authorize a designated organization to apply and enforce the Board's rules governing participation in interscholastic athletic activities at the high school level.

(24)      Duty to Develop Standards for Alternative Learning Programs, Provide Technical Assistance on Implementation of Programs, and Evaluate Programs. - The State Board of Education Superintendent of Public Instruction shall adopt standards for assigning students to alternative learning programs. These standards shall include (i) a description of the programs and services that are recommended to be provided in alternative learning programs and (ii) a process for ensuring that an assignment is appropriate for the student and that the student's parents are involved in the decision. The State Board Superintendent also shall adopt policies that define what constitutes an alternative school and an alternative learning program.

The State Board of Education Superintendent shall also adopt standards to require that local school administrative units shall use (i) the teachers allocated for students assigned to alternative learning programs pursuant to the regular teacher allotment and (ii) the teachers allocated for students assigned to alternative learning programs only to serve the needs of these students.

The State Board of Education Superintendent shall provide technical support to local school administrative units to assist them in developing and implementing plans and proposals for alternative learning programs.

The State Board Superintendent shall evaluate the effectiveness of alternative learning programs and, in its his or her discretion, of any other programs funded from the Alternative Schools/At-Risk Student allotment. Local school administrative units shall report to the State Board of Education Superintendent on how funds in the Alternative Schools/At-Risk Student allotment are spent and shall otherwise cooperate with the State Board of Education Superintendent in evaluating the alternative learning programs. As part of its the evaluation of the effectiveness of these programs, the State Board Superintendent shall, through the application of the accountability system developed under G.S. 115C-105.35, measure the educational performance and growth of students placed in alternative schools and alternative programs. If appropriate, the Board Superintendent may modify this system to adapt to the specific characteristics of these schools. Also as part of its the evaluation, the State BoardSuperintendent shall evaluate its the standards adopted under this subdivision and make any necessary changes to those standards based on strategies that have been proven successful in improving student achievement and shall report to the Joint Legislative Education Oversight Committee by April 15, 2006 to determine if any changes are necessary to improve the implementation of successful alternative learning programs and alternative schools.

(25)      Duty to Report to Joint Legislative Education Oversight Committee. - Upon the request of the Joint Legislative Education Oversight Committee, the State Board Superintendent of Public Instruction shall examine and evaluate issues, programs, policies, and fiscal information, and shall make reports to that Committee. Furthermore, beginning October 15, 1997, and annually thereafter, the State Board Superintendent shall submit reports to that Committee regarding the continued implementation of Chapter 716 of the 1995 Session Laws, 1996 Regular Session. Each report shall include information regarding the composition and activity of assistance teams, schools that received incentive awards, schools identified as low-performing, school improvement plans found to significantly improve student performance, personnel actions taken in low-performing schools, and recommendations for additional legislation to improve student performance and increase local flexibility.

(25a)    [Development of Goals and Annual Report on Improvement in Graduation Rate.] - Prior to the 2010-2011 school year, the State Board of Education shall: Superintendent of Public Instruction shall:

a.         Develop a growth model establishing annual goals for continuous and substantial improvement in the four-year cohort graduation rate by local school administrative units.

b.         Establish as a short-term goal that local school administrative units meet the annual growth model goals for improvement in the four-year cohort graduation rate beginning with the graduating class of 2011 and continuing annually thereafter.

c.         Establish as long-term minimum goals statewide four-year cohort graduation rates of seventy-four percent (74%) by 2014; eighty percent (80%) by 2016; and ninety percent (90%) by 2018.

d.         Establish as a long-term goal with benchmarks and recommendations to reach a statewide four-year cohort graduation rate of one hundred percent (100%).

The State Board of Education Superintendent shall report to the Joint Legislative Education Oversight Committee by November 15, 2010, and annually thereafter on the goals, benchmarks, and recommendations described in this section. Such goals, benchmarks, and recommendations shall appropriately differentiate for students with disabilities and other specially identified subcategories within each four-year cohort. The report shall include goals and benchmarks by local school administrative unit, the strategies and recommendations for achieving the goals and benchmarks, any evidence or data supporting the strategies and recommendations, and the identity of the persons employed by the State Board of Education Department who are responsible for oversight of local school administrative units in achieving the goals and benchmarks.

(25b)    [More at Four Reports.] -

a.         The State Board of Education Superintendent of Public Instruction shall submit an annual report no later than March 15 of each year to the Joint Legislative Commission on Governmental Operations, the Joint Legislative Education Oversight Committee, the Senate Appropriations Committee on Education, the House of Representatives Appropriations Subcommittee on Education, the Office of State Budget and Management, and the Fiscal Research Division. The report shall include the following:

1.         The number of children participating in State prekindergarten.

2.         The number of children participating in State prekindergarten who have never been served in other early education programs, such as child care, public or private preschool, Head Start, Early Head Start, or early intervention programs.

3.         The expected State prekindergarten expenditures for the programs and the source of the local contributions.

4.         The results of an annual evaluation of the program.

b.         The Office of Early Learning shall contract with an independent research organization not affiliated with the Department of Health and Human Services, the Department of Public Instruction, or the Office of the Governor to produce an annual report to include longitudinal review of the More at Four program and academic, behavioral, and other child-specific outcomes. The review shall include a quasi-experimental research design of a representative sample of children who complete the More at Four program every other year and shall report on their sustained progress until the end of grade 6. The review shall also study a representative sample of children who do not enter the More at Four program but who are of the same grade level and demographic as those who complete the program, and their sustained progress shall also be reviewed until the end of grade 6. The review shall be presented to the Joint Legislative Education Oversight Committee by January 31 of every year.

(26)      Duty to Monitor and Make Recommendations Regarding Professional Development Programs. - The State Board of Education, Superintendent of Public Instruction in collaboration with the Board of Governors of The University of North Carolina, shall identify and make recommendations regarding meaningful professional development programs for professional public school employees. The programs shall be aligned with State education goals and directed toward improving student academic achievement. The State Board Superintendent shall annually evaluate and, after consultation with the Board of Governors, make recommendations regarding professional development programs based upon reports submitted by the Board of Governors under G.S. 116-11(12a).

(27)      Reporting Dropout Rates, Suspensions, Expulsions, and Alternative Placements. - The State Board Superintendent of Public Instruction shall report by March 15 of each year to the Joint Legislative Education Oversight Committee on the numbers of students who have dropped out of school, been suspended, been expelled, or been placed in an alternative program. The data shall be reported in a disaggregated manner and be readily available to the public. The State Board Superintendent shall not include students that have been expelled from school when calculating the dropout rate. The Board Superintendent shall maintain a separate record of the number of students who are expelled from school.

(27a)    Reducing School Dropout Rates. - The State Board of Education Superintendent of Public Instruction shall develop a statewide plan to improve the State's tracking of dropout data so that accurate and useful comparisons can be made over time. The plan shall include, at a minimum, how dropouts are counted and the methodology for calculating the dropout rate, the ability to track students movements among schools and districts, and the ability to provide information on who drops out and why.

(28)      Duty to Develop Rules for Issuance of Driving Eligibility Certificates. - The State Board of Education Superintendent of Public Instruction shall adopt the following rules to assist schools in their administration of procedures necessary to implement G.S. 20-11 and G.S. 20-13.2:

a.         To define what is equivalent to a high school diploma for the purposes of G.S. 20-11 and G.S. 20-13.2. These rules shall apply to all educational programs offered in the State by public schools, charter schools, nonpublic schools, or community colleges.

b.         To establish the procedures a person who is or was enrolled in a public school or in a charter school must follow and the requirements that person shall meet to obtain a driving eligibility certificate.

c.         To require the person who is required under G.S. 20-11(n) to sign the driving eligibility certificate to provide the certificate if he or she determines that one of the following requirements is met:

1.         The person seeking the certificate is eligible for the certificate under G.S. 20-11(n)(1) and is not subject to G.S. 20-11(n1).

2.         The person seeking the certificate is eligible for the certificate under G.S. 20-11(n)(1) and G.S. 20-11(n1).

These rules shall apply to public schools and charter schools.

d.         To provide for an appeal to an appropriate education authority by a person who is denied a driving eligibility certificate. These rules shall apply to public schools and charter schools.

e.         To define exemplary student behavior and to define what constitutes the successful completion of a drug or alcohol treatment counseling program. These rules shall apply to public schools and charter schools.

The State Board Superintendent also shall develop policies as to when it is appropriate to notify the Division of Motor Vehicles that a person who is or was enrolled in a public school or in a charter school no longer meets the requirements for a driving eligibility certificate.

The State Board Superintendent shall develop a form for parents, guardians, or emancipated juveniles, as appropriate, to provide their written, irrevocable consent for a school to disclose to the Division of Motor Vehicles that the student no longer meets the conditions for a driving eligibility certificate under G.S. 20-11(n)(1) or G.S. 20-11(n1), if applicable, in the event that this disclosure is necessary to comply with G.S. 20-11 or G.S. 20-13.2. Other than identifying under which statutory subsection the student is no longer eligible, no other details or information concerning the student's school record shall be released pursuant to this consent. This form shall be used for students enrolled in public schools or charter schools.

The State Board of Education Superintendent may use funds appropriated for drivers education to cover the costs of driving eligibility certificates.

(29)      To Issue Special High School Diplomas to Veterans of World War II, Korea, and Vietnam. - The State Board of EducationSuperintendent of Public Instruction shall issue special high school diplomas to all honorably discharged veterans of World War II, the Korean Conflict, and the Vietnam era who request special diplomas and have not previously received high school diplomas.

(30)      Duty to Adopt Model Guidelines and Policies for the Establishment of Local Task Forces on Closing the Academic Achievement Gap. - The State Board Superintendent of Public Instruction shall adopt a Model for local school administrative units to use as a guideline to establish local task forces on closing the academic achievement gap at the discretion of the local board. The purpose of each task force is to advise and work with its local board of education and administration on closing the gap in academic achievement and on developing a collaborative plan for achieving that goal. The State Board Superintendent shall consider the recommendations of the Commission on Improving the Academic Achievement of Minority and At-Risk Students to the 2001 Session of the General Assembly in establishing its the guidelines.

(30a)    Duty to Assist Schools in Meeting Adequate Yearly Progress. - The State Board of Education Superintendent of Public Instruction shall:

a.         Identify which schools are meeting adequate yearly progress with subgroups as specified in the No Child Left Behind Act of 2001;

b.         Study the instructional, administrative, and fiscal practices and policies employed by the schools selected by the State Board of Education Superintendent that are meeting adequate yearly progress specified in the No Child Left Behind Act of 2001;

c.         Create assistance models for each subgroup based on the practices and policies used in schools that are meeting adequate yearly progress. The schools of education at the constituent institutions of The University of North Carolina, in collaboration with the University of North Carolina Center for School Leadership Development, shall assist the State Board of Education Superintendent in developing these models; and

d.         Offer technical assistance based on these assistance models to local school administrative units not meeting adequate yearly progress, giving priority to those local school administrative units with high concentrations of schools that are not meeting adequate yearly progress. The State Board of Education Superintendent shall determine the number of local school administrative units that can be served effectively in the first two years. This technical assistance shall include peer assistance and professional development by teachers, support personnel, and administrators in schools with subgroups that are meeting adequate yearly progress.

(31)      To Adopt Guidelines for Individual Diabetes Care Plans. - The State Board Superintendent of Public Instruction shall adopt guidelines for the development and implementation of individual diabetes care plans. The State Board Superintendent shall consult with the North Carolina Diabetes Advisory Council established by the Department of Health and Human Services in the development of these guidelines. The State Board Superintendent also shall consult with local school administrative unit employees who have been designated as responsible for coordinating their individual unit's efforts to comply with federal regulations adopted under Section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 794. In itsthe development of these guidelines, the State Board Superintendent shall refer to the guidelines recommended by the American Diabetes Association for the management of children with diabetes in the school and day care setting and shall consider recent resolutions by the United States Department of Education's Office of Civil Rights of investigations into complaints alleging discrimination against students with diabetes.

The guidelines adopted by the State Board Superintendent shall include:

a.         Procedures for the development of an individual diabetes care plan at the written request of the student's parent or guardian, and involving the parent or guardian, the student's health care provider, the student's classroom teacher, the student if appropriate, the school nurse if available, and other appropriate school personnel.

b.         Procedures for regular review of an individual care plan.

c.         Information to be included in a diabetes care plan, including the responsibilities and appropriate staff development for teachers and other school personnel, an emergency care plan, the identification of allowable actions to be taken, the extent to which the student is able to participate in the student's diabetes care and management, and other information necessary for teachers and other school personnel in order to offer appropriate assistance and support to the student. The State Board Superintendent shall ensure that the information and allowable actions included in a diabetes care plan as required in this subdivision meet or exceed the American Diabetes Association's recommendations for the management of children with diabetes in the school and day care setting.

d.         Information and staff development to be made available to teachers and other school personnel in order to appropriately support and assist students with diabetes.

The State Board Superintendent shall ensure that these guidelines are updated as necessary and shall ensure that the guidelines and any subsequent changes are published and disseminated to local school administrative units.

(32)      Duty to Encourage Early Entry of Motivated Students into Four-Year College Programs. - The State Board of Education, Superintendent of Public Instruction, in cooperation with the Education Cabinet, shall work with local school administrative units, the constituent institutions of The University of North Carolina, local community colleges, and private colleges and universities to (i) encourage early entry of motivated students into four-year college programs and to (ii) ensure that there are opportunities at four-year institutions for academically talented high school students to get an early start on college coursework, either at nearby institutions or through distance learning.

The State Board of Education Superintendent shall also adopt policies directing school guidance counselors to make ninth grade students aware of the potential to complete the high school courses required for college entry in a three-year period.

(33)      Duty to Develop Recommended Programs for Use in Schools on Memorial Day. - The State Board of Education Superintendent of Public Instruction shall develop recommended instructional programs that enable students to gain a better understanding of the meaning and importance of Memorial Day. All schools, especially schools that hold school on Memorial Day, shall instruct students on the significance of Memorial Day.

(34)      Duty to Protect the Health of School-Age Children From Toxicants at School. - The State Board Superintendent of Public Instruction shall address public health and environmental issues in the classroom and on school grounds by doing all of the following:

a.         Develop guidelines for sealing existing arsenic-treated wood in playground equipment or establish a time line for removing existing arsenic-treated wood on playgrounds and testing the soil on school grounds for contamination caused by the leaching of arsenic-treated wood in other areas where children may be at particularly high risk of exposure.

b.         Establish guidelines to reduce students' exposure to diesel emissions that can occur as a result of unnecessary school bus idling, nose-to-tail parking, and inefficient route assignments.

c.         Study methods for mold and mildew prevention and mitigation and incorporate recommendations into the public school facilities guidelines as needed.

d.         Establish guidelines for Integrated Pest Management consistent with the policy of The North Carolina School Boards Association, Inc., as published in 2004. These guidelines may be updated as needed to reflect changes in technology.

e.         Establish guidelines for notification of students' parents, guardians, or custodians as well as school staff of pesticide use on school grounds.

(35)      To Encourage Local Boards of Education to Enter into Agreements Regarding the Joint Use of Facilities for Physical Activity. - The State Board of Education Superintendent of Public Instruction shall encourage local boards of education to enter into agreements with local governments and other entities regarding the joint use of their facilities for physical activity. The agreements should delineate opportunities, guidelines, and the roles and responsibilities of the parties, including responsibilities for maintenance and liability.

(36)      Duty to Charge Tuition for the Governor's School of North Carolina. - The State Board of Education Superintendent of Public Instruction shall implement a five-hundred-dollar ($500.00) tuition charge for students attending the Governor's School of North Carolina.

(37)      To Adopt Guidelines for Fitness Testing. - The State Board of Education Superintendent of Public Instruction shall adopt guidelines for the development and implementation of evidence-based fitness testing for students statewide in grades kindergarten through eight."

SECTION 13.  G.S. 115C-12.2 is recodified as G.S. 115C-23.1.  G.S. 115C-23.1 reads as rewritten:

"§ 115C-23.1.  Voluntary shared leave.

(a)        The State Board of Education, Superintendent of Public Instruction, in cooperation with the State Board of Community Colleges and the State Personnel Commission, shall adopt rules and policies to allow any employee at a public school to share leave voluntarily with an immediate family member who is an employee of a public school, community college, or State agency; and with a coworker's immediate family member who is an employee of a public school, community college, or State agency. For the purposes of this section, the term "immediate family member" means a spouse, parent, child, brother, sister, grandparent, or grandchild. The term includes the step, half, and in-law relationships. The term "coworker" means that the employee donating the leave is employed by the same agency, department, institution, university, local school administrative unit, or community college as the employee whose immediate family member is receiving the leave.

(b)        The State Board of Education Superintendent of Public Instruction shall adopt rules and policies for the voluntary shared leave program to allow an employee at a public school to donate sick leave to a nonfamily member employee of a public school. A donor of sick leave to a nonfamily member recipient shall not donate more than five days of sick leave per year to any one nonfamily member recipient. The combined total of sick leave donated to a recipient from nonfamily member donors shall not exceed 20 days per year. Donated sick leave shall not be used for retirement purposes, and employees who donate sick leave shall be notified in writing of the State retirement credit consequences of donating sick leave."

SECTION 14.  G.S. 115C-16 is recodified as G.S. 115C-23.2.  G.S. 115C-23.2 reads as rewritten:

"§ 115C-23.2.  Authorization for school uniform pilot program.

The State Board of Education Superintendent of Public Instruction may authorize up to five local school administrative units to implement pilot programs in which students are required to wear uniforms in public schools.

Prior to selecting the pilot units, the State Board of Education Superintendent shall develop guidelines for local boards of education to use when establishing requirements for students to wear uniforms in public schools. In developing these guidelines, the State Board Superintendent shall consider (i) ways to promote parental and community involvement in the pilot programs, (ii) relevant State and federal constitutional concerns such as freedom of religion and freedom of speech, and (iii) the ability of students to purchase the uniforms.

Local boards in the pilot units shall establish requirements, consistent with the State Board's Superintendent's guidelines, for students enrolled in any of their schools to wear uniforms at school during the regular school day.

No State funds shall be used for the uniforms."

SECTION 15.  G.S. 115C-17 is recodified as G.S. 115C-23.3.  G.S. 115C-23.3 reads as rewritten:

"§ 115C-23.2.  Rulemaking to implement ABC's Plan.

(a)        G.S. 150B-21.2(a)(1) shall not apply to proposed rules adopted by the State Board of Education Superintendent of Public Instruction if the proposed rules are directly related to the implementation of this act [1995 (Reg. Sess., 1996), c. 716, s. 18].

(b)        Notwithstanding G.S. 150B-21.3(b), a permanent rule that is adopted by the State Board of Education,Superintendent of Public Instruction, is approved by the Rules Review Commission, and is directly related to the implementation of this act, shall become effective five business days after the Commission delivers the rule to the Codifier of Rules, unless the rule specifies a later effective date. If the State Board of Education Superintendent specifies a later effective date, the rule becomes effective upon that date. A permanent rule that is adopted by the State Board of Education Superintendent that is directly related to the implementation of this act, but is not approved by the Rules Review Commission, shall not become effective.

(c)        G.S. 150B-21.4(b1) shall not apply to permanent rules the State Board of Education Superintendent of Public Instruction proposes to adopt if those rules are directly related to the implementation of this act [1995 (Reg. Sess., 1996), c. 716, s. 28].

(d)        The State Board of Education Superintendent of Public Instruction shall determine whether a proposed rule is directly related to this act based upon a finding that there is a rational relationship between the proposed rule and specific provisions of this act. A proposed rule may create, amend, or repeal a rule. The State Board Superintendent shall indicate in the notice of proposed text that the rule is directly related to the implementation of this act and that the Board Superintendent is proceeding under the authority granted by this act.

(e)        The State Board of Education Superintendent of Public Instruction shall provide written notice to all boards of county commissioners and all local boards of education of proposed rules that are directly related to the implementation of this act and that would affect the expenditures or revenues of a unit of local government under G.S. 150B-21.4(b). The notice shall state that a copy of the fiscal note may be obtained from the State Board.Superintendent."

SECTION 16.  G.S. 115C-37(c) reads as rewritten:

"(c)       City Board of Education. - The board of education for any city administrative unit shall be appointed or elected as now provided by law. If no provision is now made by the law for the filling of vacancies in the membership of any city board of education, such vacancy may be filled by the governing body of the city or town embraced by said administrative unit. In the event that any such vacancy is not filled in this manner within 30 days, the State Board of Education Superintendent of Public Instruction may fill such vacancy."

SECTION 17.  G.S. 115C-39 reads as rewritten:

"§ 115C-39.  Suspension of duties by State Board.

(a)        Repealed by Session Laws 2007-498, s. 1, effective August 30, 2007.

(b)        In the event the State Board of Education Superintendent of Public Instruction has appointed an interim superintendent under G.S. 115C-105.39 and the State Board Superintendent determines that the local board of education has failed to cooperate with the interim superintendent, the State Board Superintendent shall have the authority to suspend any of the powers and duties of the local board and to act on its behalf under G.S. 115C-105.39."

SECTION 18.  G.S. 115C-40 reads as rewritten:

"§ 115C-40.  Board a body corporate.

The board of education of each county in the State shall be a body corporate by the name and style of "The ______ County Board of Education," and the board of education of each city administrative school unit in the State shall be a body corporate by the name and style of "The ______ City Board of Education." The several boards of education, both county and city, shall hold all school property and be capable of purchasing and holding real and personal property, of building and repairing schoolhouses, of selling and transferring the same for school purposes, and of prosecuting and defending suits for or against the corporation.

Local boards of education, subject to any paramount powers vested by law in the State Board of Education Superintendent of Public Instruction or any other authorized agency shall have general control and supervision of all matters pertaining to the public schools in their respective local school administrative units; they shall execute the school laws in their units; and shall have authority to make agreements with other boards of education to transfer pupils from one local school administrative unit to another unit when the administration of the schools can be thereby more efficiently and more economically accomplished."

SECTION 18.1.  G.S. 115C-45 (c)(2)  reads as rewritten:

"(2)      An alleged violation of a specified federal law, State law, State Board of Education Department of Public Instruction policy, State rule, or local board policy, including policies regarding grade retention of students;".

SECTION 19.  G.S. 115C-47 reads as rewritten:

"§ 115C-47.  Powers and duties generally.

In addition to the powers and duties designated in G.S. 115C-36, local boards of education shall have the power or duty:

…

(4)        To Regulate Extracurricular Activities. - Local boards of education shall make all rules and regulations necessary for the conducting of extracurricular activities in the schools under their supervision, including a program of athletics, where desired, without assuming liability therefor; provided, that all interscholastic athletic activities shall be conducted in accordance with rules and regulations prescribed by the State Board of Education.Superintendent of Public Instruction.

…

(6)        To Regulate Fees, Charges and Solicitations. - Local boards of education shall adopt rules and regulations governing solicitations of, sales to, and fund-raising activities conducted by, the students and faculty members in schools under their jurisdiction, and no fees, charges, or costs shall be collected from students and school personnel without approval of the board of education as recorded in the minutes of said board; provided, this subdivision shall not apply to such textbooks fees as are determined and established by the State Board of Education. Superintendent of Public Instruction. All schedules of fees, charges and solicitations approved by local boards of education shall be reported to the Superintendent of Public Instruction.

(7)        To Accept and Administer Federal or Private Funds. - Local boards of education shall have power and authority to accept, receive and administer any funds or financial assistance given, granted or provided under the provisions of the Elementary and Secondary Education Act of 1965 (Public Law 89-10, 89th Congress, HR 2362) and under the provisions of the Economic Opportunity Act of 1964 (Public Law 88-452, 88th Congress, S. 2642), or other federal acts or funds from foundations or private sources, and to comply with all conditions and requirements necessary for the receipt, acceptance and use of said funds. In the administration of such funds, local boards of education shall have authority to enter into contracts with and to cooperate with and to carry out projects with nonpublic elementary and secondary schools, community groups and nonprofit corporations, and to enter into joint agreements for these purposes with other local boards of education. Local boards of education shall furnish such information as shall be requested by the State Board of Education, Superintendent of Public Instruction from time to time, relating to any programs related or conducted pursuant to this subdivision.

(8)        To Sponsor or Conduct Educational Research. - Local boards of education are authorized to sponsor or conduct educational research and special projects approved by the Department of Public Instruction and the State Board of Education that may improve the school system under their jurisdictions. Such research or projects may be conducted during the summer months and the board may use any available funds for such purposes.

(9)        To Assure Accurate Attendance Records. - When the governing board of any local school administrative unit shall have information that inaccurate school attendance records are being kept, the board concerned shall immediately investigate such inaccuracies and take necessary action to establish and maintain correct records and report its findings and action to the State Board of Education.Superintendent of Public Instruction.

(10)      To Assure Appropriate Class Size. - It shall be the responsibility of local boards of education to assure that the class size and teaching load requirements set forth in G.S. 115C-301 are met. Any teacher who believes that the requirements of G.S. 115C-301 have not been met shall make a report to the principal and superintendent, and the superintendent shall immediately determine whether the requirements have in fact not been met. If the superintendent determines the requirements have not been met, he shall make a report to the next local board of education meeting. The local board of education shall take action to meet the requirements of the statute. If the local board cannot organizationally correct the exception and if any of the conditions set out in G.S. 115C-301(g)(1) exist, it shall immediately apply to the State Board of Education Superintendent of Public Instruction for additional personnel or a waiver of the class size requirements, as provided in G.S. 115C-301(g).

Upon notification from the State Board of Education Superintendent of Public Instruction that the reported exception does not qualify for an allotment adjustment or a waiver under provisions of G.S. 115C-301, the local board, within 30 days, shall take action necessary to correct the exception.

At the end of the second month of each school year, the local board of education, through the superintendent, shall file a report with the State Board of Education, Superintendent of Public Instruction, in a format prescribed by the State Board of Education, Superintendent, describing the organization of each school, the duties of each teacher, the size of each class, and the teaching load of each teacher. As of February 1 each year, local boards of education, through the superintendent, shall report all exceptions to individual class size and daily teaching load maximums that exist at that time.

In addition to assuring that the requirements of G.S. 115C-301 are met, each local board of education shall also have the duty to provide an adequate number of classrooms to meet the requirements of that statute.

…

(12)      (For final effective date, see notes) To Implement the Basic Education Program. - Local boards of education shall implement the Basic Education Program in accordance with rules adopted by the State Board. Superintendent of Public Instruction. This implementation shall include provision for the efficient teaching of the course content required by the standard course of study.

(12)      (For future effective date, see notes) To Implement the Basic Education Program. - Local boards of education shall implement the Basic Education Program in accordance with rules adopted by the State Board. Superintendent of Public Instruction. This implementation shall include provision for the efficient teaching of the course content required by the Basic Education Program.

…

(21)      It is the duty of every local board of education to provide for the prompt monthly payment of all salaries due teachers and other school officials and employees, and of all current bills and other necessary operating expenses. All salaries and bills shall be paid as provided by law for disbursing State and local funds.

The local board shall determine salary schedules of employees pursuant to the provisions of G.S. 115C-273, 115C-285(b), 115C-302.1(i), and 115C-316(b).

The authority for boards of education to issue salary vouchers to all school employees, whether paid from State or local funds, shall be a monthly payroll prepared on forms approved by the State Board of Education Superintendent of Public Instruction and containing all information required by the State Board of Education. Superintendent. This monthly payroll shall be signed by the principal of each school.

…

(32a)    To Establish Alternative Learning Programs and Develop Policies and Guidelines. - Each local board of education shall establish at least one alternative learning program and shall adopt guidelines for assigning students to alternative learning programs. These guidelines shall include (i) a description of the programs and services to be provided, (ii) a process for ensuring that an assignment is appropriate for the student and that the student's parents are involved in the decision, and (iii) strategies for providing alternative learning programs, when feasible and appropriate, for students who are subject to long term suspension or expulsion. In developing these guidelines, local boards shall consider the State Board's Superintendent of Public Instruction's standards developed under G.S. 115C-12(24). Upon adoption of policies and guidelines under this subdivision, local boards are encouraged to incorporate them in their safe school plans developed under G.S. 115C-105.47.

The General Assembly urges local boards to adopt policies that prohibit superintendents from assigning to any alternative learning program any professional public school employee who has received within the last three years a rating on a formal evaluation that is less than above standard.

Notwithstanding this subdivision, each local board shall adopt policies based on the State Board's Superintendent's standards developed under G.S. 115C-12(24). These policies shall apply to any new alternative learning program or alternative school that is implemented beginning with the 2006-2007 school year. Local boards of education are encouraged to apply these standards to alternative learning programs and alternative schools implemented before the 2006-2007 school year.

Local boards shall assess on a regular basis whether the unit's alternative schools and alternative learning programs comply with the State Board's Superintendent's standards developed under G.S. 115C-12(24) and whether they incorporate best practices for improving student academic performance and reducing disruptive behavior, are staffed with professional public school employees who are well trained and provided with appropriate staff development, are organized to provide coordinated services, and provide students with high quality and rigorous academic instruction.

…

(33a)    To Approve and Use Textbooks Not Adopted by State Board of Education. Superintendent of Public Instruction. - Local boards of education shall have the authority to select, procure, and use textbooks not adopted by the State Board of Education Superintendent of Public Instruction as provided in G.S. 115C-98(b1).

…

(36)      To Report All Acts of School Violence. - Local boards of education shall report all acts of school violence to the State Board of Education Superintendent of Public Instruction in accordance with G.S. 115C-12(21).

…

(45)      To Report Certain Incidents of Seclusion and Restraint. - Local boards of education shall maintain a record of incidents reported under G.S. 115C-391.1(j)(4) and shall provide this information annually to the State Board of Education. Superintendent of Public Instruction.

…

(58)      To Inform the Public About the North Carolina School Report Cards Issued by the State Board of Education. Superintendent of Public Instruction. - Each local board of education shall ensure that the report card issued for it by the State Board of Education Superintendent of Public Instruction receives wide distribution to the local press or otherwise.

…."

SECTION 20.  G.S. 115C-66 reads as rewritten:

"§ 115C-66.  Administrative units classified.

Each county of the State shall be classified as a county school administrative unit, the schools of which, except in city administrative units, shall be under the general supervision and control of a county board of education with a county superintendent as the administrative officer.

A city school administrative unit shall be classified as an area within a county or adjacent parts of two or more contiguous counties which has been or may be approved by the State Board of Education Superintendent of Public Instruction as such a unit for purposes of school administration. The general administration and supervision of a city administrative unit shall be under the control of a board of education with a city superintendent as the administrative officer.

All local school administrative units, whether city or county, shall be dealt with by the State school authorities in all matters of school administration in the same way.

For purposes of eligibility for federal grant funds, the Department of Health and Human Services is hereby classified as a public authority, which is the school administrative agency for the schools that it operates, and shall be considered as such by the State school authorities in the administration and distribution of federal grant funds."

SECTION 21.  G.S. 115C-67 reads as rewritten:

"§ 115C-67.  Merger of units in same county.

City school administrative units may be consolidated and merged with contiguous city school administrative units and with county school administrative units upon approval by the State Board of Education Superintendent of Public Instruction of a plan for consolidation and merger submitted by the boards of education involved and bearing the approval of the board of county commissioners.

County and city boards of education desiring to consolidate and merge their school administrative units may do so by entering into a written plan which shall set forth the conditions of merger. The provisions of the plan shall be consistent with the General Statutes and shall contain, but not be limited to, the following:

(1)        The name by which the merged school administrative unit shall be identified and known.

(2)        The effective date of the merger.

(3)        The establishment and maintenance of a board of education which shall administer all the public schools of the newly created unit, including:

a.         The termination of any terms of office proposed in the reorganization of the board.

b.         The method of constituting and continuing the board of education; the manner of selection of board members, including (i) the number of members of the board, (ii) the method of their election or appointment, (iii) whether members shall be nominated, elected, or appointed from districts or at large, (iv) the manner of determining the nominee, and (v) whether the election shall be partisan or nonpartisan; the length of the members' terms of office; the dates of induction into office; the organization of the board; the procedure for filling vacancies; and the compensation to be paid members of the board for expenses incurred in performance of their duties. To the extent that the method conflicts with G.S. 115C-35, G.S. 115C-37, or with any local act concerning any of the units being merged and consolidated, the plan of merger and consolidation shall prevail.

(4)        The authority, powers, and duties of the board of education with respect to the employment of personnel, the preparation of budgets, and any other related matters which may be particularly applicable to the merged unit not inconsistent with the General Statutes.

(5)        The transfer of all facilities, properties, structures, funds, contracts, deeds, titles, and other obligations, assets and liabilities to the board of education of the merged unit.

(6)        Whether or not there shall be continued in force any supplemental school tax which may be in effect in either or all local school administrative units involved.

(7)        A public hearing, which shall have been announced at least 10 days prior to the hearing, on the proposed plan of merger.

(8)        A statement as to whether the question of merger, in accordance with the projected plan, is to be contingent upon approval of the voters in the affected area.

(9)        Any other condition or prerequisite to merger, together with any other appropriate subject or function that may be necessary for the orderly consolidation and merger of the local school administrative units involved.

The plan referred to above shall be mutually agreed upon by the city and county boards of education involved and shall be accompanied by a certification that the plan was approved by the board of education on a given day and that the action has been duly recorded in the minutes of said board, together with a certification to the effect that the public hearing required above was announced and held. The plan, together with the required certifications, shall then be submitted to the board of county commissioners for its concurrence and approval. After such approval has been received, the plan shall be submitted to the State Board of Education Superintendent of Public Instruction for the approval of said State Board Superintendent and the plan shall not become effective until such approval is granted. Upon approval by the State Board of Education, Superintendent, the plan of consolidation and merger shall become final and shall be deemed to have been made by authority of law and shall not be changed or amended except by an act of the General Assembly. The written plan of agreement shall be placed in the custody of the board of education operating and administering the public schools in the merged unit and a copy filed with the Secretary of State.

The plan may be, but it is not required that it be, submitted for the approval of the voters of the geographic area affected in a referendum or election called for such purpose, and such elections or referendums if held shall be held under the provisions governing elections or referendums as set forth in G.S. 115C-507, with authority of the board of county commissioners to have such election or referendum conducted by the board of elections of the county.

Upon approval of the plan of consolidation or merger by the State Board of Education, Superintendent of Public Instruction, or upon approval of the plan of consolidation or merger by the voters in a referendum or election called for such purpose, and as soon as a provisional or interim board of education of the merged unit, or a permanent board of education of the merged unit, enters in and upon the duties of the administration of the public schools of the consolidated or merged unit, then the former boards of education and all public officers of the former boards of education of the separate units thus merged shall stand abolished, and said separate boards of education or administrative units thus merged shall stand dissolved and shall cease to exist for any and all purposes. All consolidations and mergers of county and city boards of education and of county and city school administrative units heretofore agreed to and finally approved, and all consolidation or merger proceedings entered into prior to June 9, 1969, are hereby declared to be effective, legal and according to law notwithstanding any defect in the merger or consolidation proceedings and notwithstanding any dissolution of the separate boards of education and public officers of the former, separate school units."

SECTION 22.  G.S. 115C-68(a) reads as rewritten:

"(a)       Boards of education of contiguous counties or boards of education in a group of counties in which each county is contiguous with at least one other county in the group, and any city school administrative unit located in counties to be merged, may merge school administrative units upon approval by the State Board of Education Superintendent of Public Instruction of a written plan for merger submitted by the boards of education involved and bearing the approval of the tax-levying body for the school units. The plan shall be consistent with the General Statutes,  shall contain provisions covering those items listed in G.S. 115C-67 (providing for the merger of units in the same county), and shall contain any other provision deemed necessary or appropriate by the State Board of Education Superintendent of Public Instruction or the local boards of education for the merger of school units in two or more counties."

SECTION 23.  G.S. 115C-68.1 reads as rewritten:

"§ 115C-68.1.  Merger of units by the board of commissioners.

…

(d)        For the purpose of this section, local funding per average daily membership means the budgeted local expense per average daily membership. The State Board of Education Superintendent of Public Instruction shall establish guidelines for the computation of this amount and the amount shall be set out in the plan for consolidation and merger.

(e)        If the State Board of Education Superintendent of Public Instruction fails to approve a plan submitted to it under this section, such failure to approve does not preclude the approval of the plan by the General Assembly by local act."

SECTION 24.  G.S. 115C-68.2 reads as rewritten:

"§ 115C-68.2.  Merger of units by the local boards of education.

If a city board of education notifies the State Board of Education Superintendent of Public Instruction that it is dissolving itself, the State Board of Education Superintendent shall adopt a plan of consolidation and merger of that city school administrative unit with the county school administrative unit in the county in which the city unit is located; provided, however, if a city school administrative unit located in more than one county notifies the State Board of Education Superintendent of Public Instruction that it is dissolving itself, the State Board Superintendent shall adopt a plan that divides the city unit along the county line and consolidates and merges the part of the city unit in each county with the county unit in that county and the plans shall take effect on the same day. The plans shall be prepared and approved in accordance with G.S. 115C-67 as provided by general law, and G.S. 115C-68 as provided by general law, as applicable, except that the county and city boards of education and the boards of commissioners shall not participate by preparing, entering into, submitting, or agreeing to a plan, and the plan shall not be contingent upon approval by the voters."

SECTION 25.  G.S. 115C-71 reads as rewritten:

"§ 115C-71.  Districts formed from portions of contiguous counties.

School districts may be formed out of contiguous counties by agreement of the county boards of education of the respective counties subject to the approval of the State Board of Education. Superintendent of Public Instruction. Rules for the organization, support and operation of districts so formed are subject to the agreement of the boards of education concerned, and as a guide to the working out of such agreements the formulas contained in G.S. 115C-510 should be followed as far as applicable."

SECTION 26.  G.S. 115C-72(a) reads as rewritten:

"§ 115C-72.  Consolidation of districts and discontinuance of schools.

(a)        Local boards of education shall have the power and authority to close or consolidate schools located in the same district, and with the approval of the State Board of Education, Superintendent of Public Instruction, to consolidate school districts or other school areas over which the board has full control, whenever and wherever in its judgment the closing or consolidation will better serve the educational interest of the local school administrative unit or any part of it.

In determining whether two or more public schools shall be consolidated, or in determining whether or not a school shall be closed and the pupils transferred therefrom, local boards of education of the several counties shall observe and be bound by the following rules:

(1)        In any question involving the closing or consolidation of any public school, the local board of education of the school administrative unit in which such school is located shall cause a thorough study of such school to be made, having in mind primarily the welfare of the students to be affected by a proposed closing or consolidation and including in such study, among other factors, geographic conditions, anticipated increase or decrease in school enrollment, the inconvenience or hardship that might result to the pupils to be affected by such closing or consolidation, the cost of providing additional school facilities in the event of such closing or consolidation, and such other factors as the board shall consider germane. Before the entry of any order of closing or consolidation, the local board of education shall provide for a public hearing in regard to such proposed closing or consolidation, at which hearing the public shall be afforded an opportunity to express their views. Upon the basis of the study so made and after such hearing, said board may, in the exercise of its discretion, approve the closing or consolidation proposed.

(2)        The provisions of this section shall not deprive any local board of education of the authority to assign or enroll any and all pupils in schools in accordance with the provisions of G.S. 115C-366(b) and 115C-367 to 115C-370."

SECTION 27.  G.S. 115C-73 reads as rewritten:

"§ 115C-73.  Enlarging tax districts and city units by permanently attaching contiguous property.

The county boards of education with the approval of the State Board of Education Superintendent of Public Instruction may transfer from nontax territory and attach permanently to local tax districts or to city school administrative units, real property contiguous to said local tax districts or city school administrative units, upon the written petition of the owners thereof and the taxpayers of the families living on such real property, and there shall be levied upon the property of each individual in the area so attached, including landowners and tenants, the same tax as is levied upon other property in said district or unit: Provided, that such transfer shall be subject to the approval of the board of education of such city unit: Provided, the petition must be signed by a majority of the persons who are the owners thereof and a majority of the taxpayers of the families living on such real property on the date the petition is filed with the county board of education: Provided, further, that a person or corporation owning only an easement in real property shall not be considered an owner of said property within contemplation of this section: Provided, further that no right of action or defense founded upon the invalidity of such transfer shall be asserted, nor shall the validity of such transfer be open to question in any court upon any ground whatever, except in an action or proceeding commenced within 60 days after the approval of such transfer is given by the State Board of Education. Superintendent of Public Instruction.

Any qualified voter residing in the area attached shall be permitted to vote in any election for members of the board of education having jurisdiction over the attached area."

SECTION 28.  G.S. 115C-75(a)(2)  reads as rewritten:

"(2)      A "high school" is a school that includes all or part of grades nine through 12 and that offers at least the minimum high school course of study prescribed by the State Board of Education. Superintendent of Public Instruction."

SECTION 29.  G.S. 115C-81 reads as rewritten:

"§ 115C-81.  Basic Education Program.

(a)        The General Assembly believes that all children can learn. It is the intent of the General Assembly that the mission of the public school community is to challenge with high expectations each child to learn, to achieve, and to fulfill his or her potential. With that mission as its a guide, the State Board of Education Superintendent of Public Instruction shall adopt a Basic Education Program for the public schools of the State. Before it adopts or revises the Basic Education Program, the State Board Superintendent shall consult with an Advisory Committee, including at least eight members of local boards of education, that the  State Board Superintendent appoints from a list of nominees submitted by the North Carolina School Boards Association.

The State Board Superintendent shall implement the Basic Education Program within funds appropriated for that purpose by the General Assembly and by units of local government. It is the intent of the General Assembly that until the Basic Education Program is fully funded, the implementation of the Basic Education Program shall be the focus of State educational funding. It is the goal of the General Assembly that the Basic Education Program be fully funded and completely operational in each local school administrative unit by July 1, 1995.

It is further a goal of the General Assembly to provide supplemental funds to low-wealth counties to allow those counties to enhance the instructional program and student achievement.

…

(a3)      Alcohol and Drug Education Program to Be Recommended and Implemented:

(1)        A comprehensive education program that includes alcohol and drug use prevention education must be available to every child in North Carolina schools in kindergarten through high school.

(2)        The State Board of Education Superintendent of Public Instruction shall develop and maintain a recommended list of alcohol and drug use prevention education materials that include components for teacher training and ongoing assessment and evaluation to verify success and ensure the use of up-to-date information and strategies.

…

(4)        The Department of Public Instruction shall recommend to the State Board of Education Superintendent of Public Instruction any drug use prevention education support materials that should be removed or added to the recommended list of curricular resources developed and maintained by the State Board of Education. Superintendent of Public Instruction.

(5)        Local boards of education may select supplemental alcohol and drug use prevention education materials from the list maintained by the State Board of Education, Superintendent of Public Instruction, or develop their own supplemental materials to be approved by the State Board of Education. Superintendent of Public Instruction.

…

(7)        Local boards of education will provide for ongoing evaluation of drug use prevention education resources, to include participation in on-going evaluations with the Department of Public Instruction.

…

(10)      The Department of Public Instruction, in conjunction with local school districts, will provide for staff development to train educators and support personnel to implement a comprehensive alcohol and drug use prevention education program.

…

(a4)      Conflict Resolution and Mediation Models: The State Board of Education Superintendent of Public Instruction shall develop a list of recommended conflict resolution and mediation materials, models, and curricula that address responsible decision making, the causes and effects of school violence and harassment, cultural diversity, and nonviolent methods for resolving conflict, including peer mediation and shall make the list available to local school administrative units and school buildings by the beginning of the 1994-95 school year. In developing this list, the Board Superintendent shall emphasize materials, models, and curricula that currently are being used in North Carolina and that the Board Superintendent determines to be effective. The Board Superintendent shall include at least one model that includes instruction and guidance for the voluntary implementation of peer mediation programs and one model that provides instruction and guidance for teachers concerning the integration of conflict resolution and mediation lessons into the existing classroom curriculum.

(b)        The Basic Education Program shall include course requirements and descriptions similar in format to materials previously contained in the standard course of study and it shall provide:

(1)        A core curriculum for all students that takes into account the special needs of children;

(2)        A set of competencies, by grade level, for each curriculum area;

(3)        A list of textbooks for use in providing the curriculum;

(4)        Standards for student performance and promotion based on the mastery of competencies, including standards for graduation, that take into account children with disabilities and, in particular, include appropriate modifications;

(5)        A program of remedial education;

(6)        Required support programs;

(7)        A definition of the instructional day;

(8)        Class size recommendations and requirements;

(9)        Prescribed staffing allotment ratios;

(10)      Material and equipment allotment ratios;

(11)      Facilities guidelines that reflect educational program appropriateness, long-term cost efficiency, and safety considerations; and

(12)      Any other information the Board Superintendent considers appropriate and necessary.

The State Board Superintendent shall not adopt or enforce any rule that requires Algebra I as a graduation standard or as a requirement for a high school diploma for any student whose individualized education program (i) identifies the student as learning disabled in the area of mathematics and (ii) states that this learning disability will prevent the student from mastering Algebra I.

The State Board Superintendent shall not require any student to prepare a high school graduation project as a condition of graduation from high school; local boards of education may, however, require their students to complete a high school graduation project.

…

(d)        The standard course of study as it exists on January 1, 1985, and as subsequently revised by the State Board, Superintendent, shall remain in effect until its components have been fully incorporated and implemented as a part of the Basic Education Program.

(e)        Repealed by Session Laws 1995, c. 534, s. 2.

(e1)      School Health Education Program to Be Developed and Administered.

…

(2)        The State Board of Education Superintendent of Public Instruction shall supervise the development and operation of a statewide comprehensive school health education program including curriculum development, in-service training provision and promotion of collegiate training, learning material review, and assessment and evaluation of local programs in the same manner as for other programs. The State Board of Education Superintendent shall adopt objectives for the instruction of the subject areas listed in subdivision (1) of this subsection that are appropriate for each grade level. In addition, the State Board Superintendent shall approve textbooks and other materials incorporating these objectives that local school administrative units may purchase with State funds. The State Board of Education, Superintendent, through the Department of Public Instruction, shall, on a regular basis, review materials related to these objectives, and distribute these reviews to local school administrative units for their information.

…

(5)        The State Board of Education Superintendent of Public Instruction shall make available to all local school administrative units for review by the parents and legal guardians of students enrolled at that unit any State-developed objectives for instruction, any approved textbooks, the list of reviewed materials, and any other State-developed or approved materials that pertain to or are intended to impart information or promote discussion or understanding in regard to the prevention of sexually transmitted diseases, including HIV/AIDS, to the avoidance of out-of-wedlock pregnancy, or to the  reproductive health and safety education curriculum. The review period shall extend for at least 60 days before use.

…

(11)      Each local school administrative unit shall provide a comprehensive school health education program that meets all the requirements of this subsection and all the objectives established by the State Board. Superintendent. Each local board of education may expand on the subject areas to be included in the program and on the instructional objectives to be met.

(e2)      Honors-Level Courses in Healthful Living Education to be Developed and Administered. - The State Board of Education Superintendent of Public Instruction shall develop or identify academically rigorous honors-level courses in healthful living education that can be offered at the high school level. These honors-level courses shall be more rigorous than standard-level courses, include advanced content, provide multiple opportunities for students to take greater responsibility for their learning, and require higher quality work from the students than standard courses.

(f)         Establishment and Maintenance of Kindergartens. -

(1)        Local boards of education shall provide for their respective local school administrative unit kindergartens as a part of the public school system for all children living in the local school administrative unit who are eligible for admission pursuant to subdivision (2) of this subsection provided that funds are available from State, local, federal or other sources to operate a kindergarten program as provided in this subsection.

All kindergarten programs so established shall be subject to the supervision of the Department of Public Instruction and shall be operated in accordance with the standards adopted by the State Board of Education, upon recommendation of the Superintendent of Public Instruction.

Among the standards to be adopted by the State Board of Education Superintendent of Public Instruction shall be a provision that the Board Superintendent will allocate funds for the purpose of operating and administering kindergartens to each school administrative unit in the State based on the average daily membership for the best continuous three out of the first four school months of pupils in the kindergarten program during the last school year in that respective school administrative unit. Such allocations are to be made from funds appropriated to the State Board of Education Department of Public Instruction for the kindergarten program.

…

(3)        Notwithstanding any other provision of law to the contrary, subject to the approval of the State Board of Education, Superintendent of Public Instruction, any local board of education may elect not to establish and maintain a kindergarten program. Any funds allocated to a local board of education which does not operate a kindergarten program may be reallocated by the State Board of Education, within the discretion of the Board, Superintendent of Public Instruction to a county or city board of education which will operate such a program.

(g)        Civic Literacy. -

…

(4)        The State Board of Education Superintendent of Public Instruction shall require that any high school level curriculum-based tests developed and administered statewide beginning with academic year 1990-91 include questions related to the Declaration of Independence, the United States Constitution and its amendments, and the most important of the Federalist Papers.

(5)        The State Department of Public Instruction and the local boards of education, as appropriate, shall establish curriculum content and provide for teacher training to ensure that the intent and provisions of this subsection are carried out. The curriculum content established shall include a review of the contributions made by Americans of all races.

(g1)      Modifications to the social studies curriculum to instruct students on participation in the democratic process and to give them hands-on experience in participating in the democratic process:

(1)        The State Board of Education Superintendent of Public Instruction shall modify the high school social studies curriculum to include instruction in civic and citizenship education. The State Board of Education Superintendent is strongly encouraged to include, at a minimum, the following components in the high school civic and citizenship education curriculum:

a.         That students write to a local, State, or federal elected official about an issue that is important to them;

b.         Instruction on the importance of voting and otherwise participating in the democratic process, including instruction on voter registration and preregistration;

c.         Information about current events and governmental structure; and

d.         Information about the democratic process and how laws are made.

(2)        The State Board of Education Superintendent of Public Instruction shall modify the middle school social studies curriculum to include instruction in civic and citizenship education. The State Board of Education Superintendent is strongly encouraged to include, at a minimum, the following components in the middle school civic and citizenship education curriculum:

a.         A tour of representative local government facilities such as the local jail, the courthouse, or a town hall, to help students understand the way their community is governed;

b.         That students choose and analyze a community problem and offer public policy recommendations on the problem to local officials; and

c.         Information about getting involved in community groups.

…

The State Board of Education Superintendent of Public Instruction shall determine the other components of personal financial literacy that will be covered in the curriculum. The State Board Superintendent shall also review the high school standard course of study to determine into which courses and grade levels the personal financial literacy curriculum shall be integrated.

…."

SECTION 30.  G.S. 115C-81.2 reads as rewritten:

"§ 115C-81.2.  Comprehensive plan for reading achievement.

(a)        The State Board of Education Superintendent of Public Instruction shall develop a comprehensive plan to improve reading achievement in the public schools. The plan shall be fully integrated with State Board the Superintendent's plans to improve student performance and promote local flexibility and efficiency. The plan shall be based on reading instructional practices for which there is strong evidence of effectiveness in existing empirical scientific research studies on reading development. The plan shall be developed with the active involvement of teachers, college and university educators, parents of students, and other interested parties. The plan shall, if appropriate, include revision of the standard course of study, revision of teacher certification standards, and revision of teacher education program standards.

(b)        The State Board of Education Superintendent of Public Instruction shall critically evaluate and revise the standard course of study so as to provide school units with guidance in the implementation of balanced, integrated, and effective programs of reading instruction. The General Assembly believes that the first, essential step in the complex process of learning to read is the accurate pronunciation of written words and that phonics, which is the knowledge of relationships of the symbols of the written language and the sounds of the spoken language, is the most reliable approach to arriving at the accurate pronunciation of a printed word. Therefore, these programs shall include early and systematic phonics instruction. The State Board Superintendent shall provide opportunities for teachers, parents, and other interested parties to participate in this evaluation and revision.

(c)        In order to reflect changes to the standard course of study and to emphasize balanced, integrated, and effective programs of reading instruction that include early and systematic phonics instruction, the State Board of Education, Superintendent of Public Instruction, in collaboration with the Board of Governors of The  University of North Carolina and with the North Carolina Association of Independent Colleges and Universities, shall review, evaluate, and revise current teacher certification standards and teacher education programs within the institutions of higher education that provide coursework in reading instruction.

(d)        Local boards of education are encouraged to review and revise existing board policies, local curricula, and programs of professional development in order to reflect changes to the standard course of study and to emphasize balanced, integrated, and effective programs of reading instruction that include early and systematic phonics instruction.

(e)        Repealed by Session Laws 1997-18, s. 15(g)."

SECTION 31.  G.S. 115C-81.3 reads as rewritten:

"§ 115C-81.3.  Instruction in American Sign Language.

(a)        The State Board of Education Superintendent of Public Instruction shall encourage schools to offer American Sign Language classes in high schools as a modern foreign language.

(b)        The State Board of Education Superintendent of Public Instruction shall adopt and implement standards for the certification of teachers of American Sign Language and shall set standards for teacher preparation programs that prepare students for certification as American Sign Language teachers."

SECTION 32.  G.S. 115C-81.4 reads as rewritten:

"§ 115C-81.4.  Science safety requirements.

(a)        Prior to July 1, 2010, and annually thereafter, each local board of education shall certify to the State Board of Education Superintendent of Public Instruction that its high school and middle school science laboratories are equipped with appropriate personal protective equipment for students and teachers.

(b)        Each local board of education shall ensure that its high schools and middle schools comply with all State Board of Education Superintendent of Public Instruction policies related to science laboratory safety."

SECTION 33.  G.S. 115C-84.2 reads as rewritten:

"§ 115C-84.2.  School calendar.

(a)        School Calendar. - Each local board of education shall adopt a school calendar consisting of 215 days all of which shall fall within the fiscal year. A school calendar shall include the following:

(1)        (Temporary amendment of this subdivision applicable only to 2009-2010 school year, see note) A minimum of either 180 days or 1,000 hours of instruction covering at least nine calendar months. The local board shall designate when the 180 instructional days or 1,000 hours shall occur. The number of instructional hours in an instructional day may vary according to local board policy and does not have to be uniform among the schools in the administrative unit. Local boards may approve school improvement plans that include days with varying amounts of instructional time. If school is closed early due to inclement weather, the day and the scheduled amount of instructional hours may count towards the required minimum to the extent allowed by State Board the Superintendent of Public Instruction's policy. The school calendar shall include a plan for making up days and instructional hours missed when schools are not opened due to inclement weather.

If, due to inclement weather, a local board of education complies with this subdivision by scheduling 1,000 hours of instruction on less than 180 days, the local school administrative unit is deemed to have a minimum of 180 days of instruction, teachers employed for a 10-month term are deemed to have been employed for 180 instructional days, and all other employees shall be compensated as if they had worked their regularly scheduled hours for 180 instructional days.

(1)        (See notes) A minimum of 180 days and 1,000 hours of instruction covering at least nine calendar months. The local board shall designate when the 180 instructional days shall occur. The number of instructional hours in an instructional day may vary according to local board policy and does not have to be uniform among the schools in the administrative unit. Local boards may approve school improvement plans that include days with varying amounts of instructional time. If school is closed early due to inclement weather, the day and the scheduled amount of instructional hours may count towards the required minimum to the extent allowed by State Board the Superintendent's policy. The school calendar shall include a plan for making up days and instructional hours missed when schools are not opened due to inclement weather.

(1a)      Repealed by Session Laws 2004-180, s. 1, effective August 9, 2004.

(2)        A minimum of 10 annual vacation leave days.

(3)        The same or an equivalent number of legal holidays occurring within the school calendar as those designated by the State Personnel Commission for State employees.

(4)        Five days, as designated by the local board, for use as teacher workdays. These days shall be protected to allow teachers to complete instructional and classroom administrative duties. The local school administrative unit shall not impose any additional tasks on these days. The local board shall schedule one of these days at the beginning of the school year and one at the end of each academic quarter.

(5)        The remaining days scheduled by the local board in consultation with each school's principal for use as teacher workdays, additional instructional days, or other lawful purposes. Before consulting with the local board, each principal shall work with the school improvement team to determine the days to be scheduled and the purposes for which they should be scheduled. Days may be scheduled and planned for different purposes for different personnel and there is no requirement to schedule the same dates for all personnel. In order to make up days for school closing because of inclement weather, the local board may designate any of the days in this subdivision as additional make-up days to be scheduled after the last day of student attendance.

Local boards and individual schools are encouraged to use the calendar flexibility in order to meet the annual performance standards set by the State Board. Superintendent of Public Instruction. Local boards of education shall consult with parents and the employed public school personnel in the development of the school calendar.

Local boards shall designate at least seven days scheduled under subdivisions (4) and (5) of this subsection as days on which teachers may take accumulated vacation leave. Local boards may designate the remaining days scheduled in subdivisions (4) and (5) of this subsection as days on which teachers may take accumulated vacation leave, but local boards shall give teachers at least 14 calendar days' notice before requiring a teacher to work instead of taking vacation leave on any of these days. A teacher may elect to waive this notice requirement for one or more of these days.

…

(c)        Emergency Conditions. - During any period of emergency in any section of the State where emergency conditions make it necessary, the State Board of Education Superintendent of Public Instruction may order general, and if necessary, extended recesses or adjournment of the public schools.

(d)        Opening and Closing Dates. -  Local boards of education shall determine the dates of opening and closing the public schools under subdivision (a)(1) of this section. Except for year-round schools, the opening date for students shall not be before August 25, and the closing date for students shall not be after June 10. On a showing of good cause, the State Board of Education Superintendent of Public Instruction may waive this requirement to the extent that school calendars are able to provide sufficient days to accommodate anticipated makeup days due to school closings. A local board may revise the scheduled closing date if necessary in order to comply with the minimum requirements for instructional days or instructional time. For purposes of this subsection, the term "good cause" means either that:

(1)        schools in any local school administrative unit in a county have been closed eight days per year during any four of the last 10 years because of severe weather conditions, energy shortages, power failures, or other emergency situations; or

(2)        schools in any local school administrative unit in a county have been closed for all or part of eight days per year during any four of the last 10 years because of severe weather conditions. For purposes of this subdivision, a school shall be deemed to be closed for part of a day if it is closed for two or more hours.

The State Board Superintendent also may waive this requirement for an educational purpose. The term "educational purpose" means a local school administrative unit establishes a need to adopt a different calendar for (i) a specific school to accommodate a special program offered generally to the student body of that school, (ii) a school that primarily serves a special population of students, or (iii) a defined program within a school. The State Board Superintendent may grant the waiver for an educational purpose for that specific school or defined program to the extent that the State Board Superintendent finds that the educational purpose is reasonable, the accommodation is necessary to accomplish the educational purpose, and the request is not an attempt to circumvent the opening and closing dates set forth in this subsection. The waiver requests for educational purposes shall not be used to accommodate system-wide class scheduling preferences.

The required opening and closing dates under this subsection shall not apply to any school that a local board designated as having a modified calendar for the 2003-2004 school year or to any school that was part of a planned program in the 2003-2004 school year for a system of modified calendar schools, so long as the school operates under a modified calendar.

(e)        Nothing in this section prohibits a local board of education from offering supplemental or additional educational programs or activities outside the calendar adopted under this section."

SECTION 33A.  G.S. 115C-85 reads as rewritten:

"§ 115C-85.  Textbook needs are determined by course of study.

When the State Board of Education has adopted, upon the recommendation of the Superintendent of Public Instruction, Instruction has adopted a standard course of study at each instructional level in the elementary school and the secondary school, setting forth what subjects shall be taught at each level, it shall proceed to select and adopt textbooks.

As used in this part, "textbook" means systematically organized material comprehensive enough to cover the primary objectives outlined in the standard course of study for a grade or course. Formats for textbooks may be print or nonprint, including hardbound books, softbound books, activity-oriented programs, classroom kits, and technology-based programs that require the use of electronic equipment in order to be used in the learning process.

Textbooks adopted in accordance with the provisions of this Part shall be used by the public schools of the State except as provided in G.S. 115C-98(b1)."

SECTION 34.  G.S. 115C-86 reads as rewritten:

"§ 115C-86.  State Board of Education Superintendent of Public Instruction to select and adopt textbooks.

The Board Superintendent shall select and adopt for a period determined to be most advantageous to the State public school system for the exclusive use in the public schools of North Carolina the basic textbooks or series of books needed for instructional purposes at each instructional level on all subject matter required by law to be taught in elementary and secondary schools of North Carolina."

SECTION 35.  G.S. 115C-87 reads as rewritten:

"§ 115C-87.  Appointment of Textbook Commission.

Shortly after assuming office, the Governor shall appoint a Textbook Commission of 23 members who shall hold office for four years, or until their successors are appointed and qualified. The members of the Commission shall be appointed by the Governor upon recommendation of the Superintendent. Five of these members shall be teachers or principals in grades K-5; five shall be teachers or principals in grades 6-8; four shall be superintendents, teachers, or principals in grades 9-12; one shall be a superintendent of a local school administrative unit, three shall be parents of students in grades K-5 at the time of appointment; three shall be parents of students in grades 6-8 at the time of appointment; and two shall be parents of students in grades 9-12 at the time of appointment. The Governor shall fill all vacancies by appointment for the unexpired term. The Commission shall elect a chairman, subject to the approval of the Superintendent. The Commission shall meet four times a year or at the call of the chair. The members shall be entitled to compensation for each day spent on the work of the Commission as approved by the Board Superintendent and to reimbursement for travel and subsistence expense incurred in the performance of their duties at the rates specified in G.S. 138-5(a). Compensation shall be paid from funds available to the State Board of Education. Superintendent of Public Instruction."

SECTION 36.  G.S. 115C-88 reads as rewritten:

"§ 115C-88.  Commission to evaluate textbooks offered for adoption.

…

(b)        Each member shall examine carefully and file a written evaluation of each proposed textbook for which the member is responsible.

The evaluation report shall give special consideration to the suitability of the textbook to the instructional level for which it is offered, the content or subject matter, whether the textbook is aligned with the Standard Course of Study, and other criteria prescribed by the Board. Superintendent of Public Instruction.

Each evaluation report shall be signed by the member making the report and filed with the Board Superintendent not later than a day fixed by the Board Superintendent when the call for adoption is made."

SECTION 37.  G.S. 115C-89 reads as rewritten:

"§ 115C-89.  Selection of textbooks by Board.Superintendent.

At the next meeting of the Board after the reports have been filed, the The Textbook Commission and the Board Superintendent shall jointly examine the reports. From the books evaluated the Board shall select those that it thinks will meet the teaching requirements of the State public schools in the instructional levels for which they are offered. The Board Superintendent shall request sealed bids from the publishers on all the books being considered.

The Board Superintendent shall make all necessary rules and regulations concerning requests for bids, notification to publishers of calls for adoption, execution and delivery of contracts, requirement of performance bonds, cancellation clauses, and such other material matters as may affect the validity of the contracts."

SECTION 38.  G.S. 115C-90 reads as rewritten:

"§ 115C-90.  Adoption of textbooks and contracts with publishers.

The publishers' sealed bids shall be opened in the presence of two persons designated by the State Board of Education and one person three persons designated by the Superintendent of Public Instruction. The Board Superintendent may then  adopt the books required by the courses of study and enter into contracts with the publisher of adopted books. It may refuse to adopt  any of the books offered at the prices bid and call for new bids. When bids are accepted and a contract entered into, the contract may require, in the Board'sSuperintendent's discretion, that the total sales of each book in the State of North Carolina be reported annually to the Board.Superintendent.

All textbook contracts shall include a clause granting to the State Board of Education Superintendent the license to produce Braille, large print, and audio-cassette tape copies of the textbooks for use in the State public schools. Also, the General Assembly urges the State Board of Education Superintendent to request such a license from textbook publishers with whom a contract was entered into prior to August 1, 1987."

SECTION 39.  G.S. 115C-91 reads as rewritten:

"§ 115C-91.  Continuance and discontinuance of contracts with publishers.

When an existing or future contract expires, the Board Superintendent may, with the publisher's approval, continue the contract for any particular book or books for a period not less than one or more than five years. If a publisher desires to terminate a contract that has been extended beyond the original contract period, he shall give notice to the Board Superintendent 90 days prior to May 1. The Board Superintendent may then proceed to a new adoption."

SECTION 40.  G.S. 115C-92 reads as rewritten:

"§ 115C-92.  Procedure for change of textbook.

The Superintendent may at any time communicate to the Board If the Superintendent finds that a particular book is unsatisfactory for the schools, whereupon the Board Superintendent may call for a new selection and adoption. If the Board Superintendent votes decides to change a textbook, it shall give the publisher 90 days' notice prior to May 1, after which it may adopt a new book or books on the subject for which a book is sought."

SECTION 41.  G.S. 115C-93 reads as rewritten:

"§ 115C-93.  Advice from and suits by Attorney General.

The form and legality of contracts between the Board Superintendent and publishers of textbooks shall be subject to the approval of the Attorney General.

When requested by the Board, Superintendent, the Attorney General shall bring suit against any publisher who fails to keep his contract as to prices, distribution, adequate supply of books in the edition adopted, or in any other way violates the terms of his contract. The suit shall be brought for an amount sufficient to enforce the contract or to compensate the State for any loss sustained by the publisher's failure to keep his contract."

SECTION 42.  G.S. 115C-95 reads as rewritten:

"§ 115C-95.  Sale of books at lower price reduces price to State.

Every contract made by the Board Superintendent of Public Instruction with the publisher of any school textbook on the State-adopted list shall be deemed to have written therein a condition providing that if that publisher, during the life of his contract with this State, contracts with any other governmental unit or places that textbook on sale anywhere in the United States for a price less than that stipulated in his contract with the State of North Carolina, the publisher shall immediately furnish that textbook to this State at a price not greater than that for which the book is furnished, sold, or placed on sale anywhere else in the nation."

SECTION 43.  G.S. 115C-96 reads as rewritten:

"§ 115C-96.  Powers and duties of the State Board of Education Superintendent of Public Instruction in regard to textbooks.

The children of the public elementary and secondary schools of the State shall be provided with free basic textbooks within the appropriation of the General Assembly for that purpose. To implement this directive, the State Board of Education Superintendent of Public Instruction shall evaluate annually the amount of money necessary to provide textbooks based on the actual cost and availability of textbooks and shall request sufficient appropriations from the General Assembly.

The State Board of Education Superintendent shall administer a fund and establish rules and regulations necessary to:

(1)        Acquire by contract such basic textbooks as are or may be on the adopted list of the State of North Carolina which the Board Superintendent finds necessary to meet the needs of the State public school system and to carry out the provisions of this Part.

(2)        Provide a system of distribution of these textbooks and distribute the books that are provided without using any depository or warehouse facilities other than those operated by the State Board of Education. Superintendent of Public Instruction.

(3)        Provide for the free use, with proper care and return, of elementary and secondary basic textbooks. The title of said books shall be vested in the State."

SECTION 44.  G.S. 115C-97 reads as rewritten:

"§ 115C-97.  State Board of Education Superintendent of Public Instruction authorized to discontinue handling supplementary and library books.

The State Board of Education Superintendent of Public Instruction may discontinue the adoption of supplementary textbooks and, at the expiration of existing contracts, may discontinue the purchase, warehousing, and distribution of supplementary textbooks. The Board Superintendent may also discontinue the purchase and resale of library books. Funds appropriated to the State Board of Education Department of Public Instruction for supplementary textbooks shall be transferred to the State Public School Fund for allotment to each local school administrative unit, based on its average daily membership, for the purchase of supplementary textbooks, library books, periodicals, and other instructional materials."

SECTION 45.  G.S. 115C-98 reads as rewritten:

"§ 115C-98.  Local boards of education to provide for local operation of the textbook program, the selection and procurement of other instructional materials, and the use of nonadopted textbooks.

(a)        Local boards of education shall adopt rules not inconsistent with the policies of the State Board of Education Superintendent of Public Instruction concerning the local operation of the textbook program.

(b)        Local boards of education shall adopt written policies concerning the procedures to be followed in their local school administrative units for the selection and procurement of supplementary textbooks, library books, periodicals, audiovisual materials, and other supplementary instructional materials needed for instructional purposes in the public schools of their units.

Local boards of education shall have sole authority to select and procure supplementary instructional materials, whether or not the materials contain commercial advertising, to determine if the materials are related to and within the limits of the prescribed curriculum, and to determine when the materials may be presented to students during the school day. Supplementary materials and contracts for supplementary materials are not subject to approval by the State Board of Education. Superintendent of Public Instruction.

Supplementary books and other instructional materials shall neither displace nor be used to the exclusion of basic textbooks.

(b1)      A local board of education may establish a community media advisory committee to investigate and evaluate challenges from parents, teachers, and members of the public to textbooks and supplementary instructional materials on the grounds that they are educationally unsuitable, pervasively vulgar, or inappropriate to the age, maturity, or grade level of the students. The State Board of Education Superintendent of Public Instruction shall review its the rules and policies concerning these challenges and shall establish guidelines to be followed by community media advisory committees.

The local board, at all times, has sole authority and discretion to determine whether a challenge has merit and whether challenged material should be retained or removed.

(b2)      Local boards of education may:

(1)        Select, procure, and use textbooks that have not been adopted by the State Board of Education Superintendent of Public Instruction for use throughout the local school administrative unit for selected grade levels and courses; and

(2)        Approve school improvement plans developed under G.S. 115C-105.27 that include provisions for using textbooks that have not been adopted by the State Board of Education Superintendent of Public Instruction for selected grade levels and courses.

All textbook contracts made under this subsection shall include a clause granting to the local board of education the license to produce braille, large print, and audiocassette tape copies of the textbooks for use in the local school administrative unit.

(c)        Funds allocated by the State Board of Education Superintendent of Public Instruction or appropriated in the current expense or capital outlay budgets of the local school administrative units, may be used for the above-stated purposes."

SECTION 46.  G.S. 115C-100 reads as rewritten:

"§ 115C-100.  Rental fees for textbooks prohibited; damage fees authorized.

No local board of education may charge any pupil a rental fee for the use of textbooks. A pupil's parents or legal guardians may be charged damage fees for abuse or loss of textbooks under rules adopted by the State Board of Education. Superintendent of Public Instruction. All money collected from the sale of textbooks purchased with State funds under the provisions of this Part shall be paid annually as collected to the State Board of Education.Superintendent."

SECTION 47.  G.S. 115C-101 reads as rewritten:

"§ 115C-101.  Duties and authority of superintendents of local school administrative units.

The superintendent of each local school administrative unit, as an official agent of the State Board of Education, Superintendent of Public Instruction, shall administer the provisions of this Part and the rules and regulations of the Board Superintendent insofar as they apply to his unit. The superintendent of each local school administrative unit shall have authority to require the cooperation of principals and teachers so that the children may receive the best possible service, and so that all the books and moneys may be accounted for properly. If any principal or teacher fails to comply with the provisions of this section, his superintendent shall withhold his salary vouchers until the duties imposed by this section have been performed.

If any superintendent fails to comply with the provisions of this section, the State Superintendent, as secretary to the State Board of Education, Superintendent shall notify the State Board of Education and the State Treasurer. The State Board and the State Superintendent shall withhold the superintendent's salary vouchers, and the State Treasurer shall make no payment until the State Superintendent notifies him that the provisions of this section have been complied with."

SECTION 48.  G.S. 115C-102 reads as rewritten:

"§ 115C-102.  Right to purchase; disposal of textbooks and materials.

(a)        Any parent, guardian, or person in loco parentis may purchase any instructional material needed for any child in the public schools of the State from the board of education of the local school administrative unit in which the child is enrolled or, in the case of basic textbooks, from the State Board of Education. Superintendent of Public Instruction.

(b)        Notwithstanding Article 3A of Chapter 143 of the General Statutes, G.S. 143-49(4), or any other provision of law, the State Board of Education Superintendent of Public Instruction may adopt rules authorizing local boards of education to dispose of discontinued instructional material, including State-adopted textbooks."

SECTION 49.  G.S. 115C-102.5 reads as rewritten:

"§ 115C-102.5.  Commission on School Technology created; membership.

(a)        There is created the Commission on School Technology. The Commission shall be located administratively in the Department of Public Instruction.

The purpose of the Commission shall be to advise the State Board of Education Superintendent of Public Instruction on the development of a State School Technology Plan that (i) ensures the effective use of technology is built into the North Carolina Public School System for the purpose of preparing a globally competitive workforce and citizenry for the 21st century and (ii) ensures equity and access to school technology for all segments of the public school population in North Carolina.

The Commission shall meet at least twice each fiscal year and shall provide input and feedback on the State School Technology Plan prior to approval.

…

(d1)      The Chair of the State Board of Education Superintendent of Public Instruction shall select the Commission member or members who shall serve as chair or cochairs of the Commission.

(e)        The Department of Public Instruction shall provide requested professional and clerical staff to the Commission."

SECTION 50.  G.S. 115C-102.6 reads as rewritten:

"§ 115C-102.6.  Duty to propose a State school technology plan.

The State Board of EducationSuperintendent of Public Instruction shall propose a State school technology plan that ensures the effective use of technology is built into the North Carolina Public School System for the purpose of preparing a globally competitive workforce and citizenry for the 21st century. The Commission on School Technology will advise the State Board of Education Superintendent on the State School Technology Plan and its components."

SECTION 51.  G.S. 115C-102.6A(c)(7) reads as rewritten:

"§ 115C-102.6A.  Elements of the State school technology plan.

 (c)       Components of the State school technology plan shall include at least the following:

…

(7)        Recommendations to the State Board of Education Superintendent of Public Instruction of requirements for preservice teacher training on the integration of teaching and school technology."

SECTION 52.  G.S. 115C-102.6B reads as rewritten:

"§ 115C-102.6B.  Approval of State school technology plan.

(a)        The State Board of Education Superintendent of Public Instruction shall review, revise as needed, and approve the State School Technology Plan at a minimum every two years in the odd-numbered year, beginning in 2011. The plan shall be updated more often, as required, as in cases where significant changes occur related to Board the Superintendent's goals, curriculum standards, and available technology.

(b)        The Board Superintendent shall submit the plan to the State Chief Information Officer for approval of the technical components of the plan set out in G.S. 115C-102.6A(1) through (4). At least one-fourth of the members of any technical committee that reviews the plan for the State Chief Information Officer shall be people actively involved in primary or secondary education.

The Board Superintendent shall report annually by February 1 of each year to the Joint Legislative Education Oversight Committee on the status of the State School Technology Plan.

(c)        Repealed by Session Laws 2009-451, s. 7.31, effective July 1, 2009."

SECTION 53.  G.S. 115C-102.6C reads as rewritten:

"§ 115C-102.6C.  Approval of local school system technology plans.

(a)        Each local board of education shall develop a local school system technology plan that is aligned with and meets the requirements of the State school technology plan. In developing a local school system technology plan, a local board of education is encouraged to incorporate this plan into its strategic planning and to bring together stakeholders from various areas of the local school administrative unit, including curriculum leaders, teachers, administrators, representatives from technology services and instructional technology, and finance, as well as other departments of the unit as required. In addition, the local board is encouraged to coordinate its planning with other agencies of State and local government, including other local school administrative units.

The Department of Public Instruction shall assist the local boards of education in developing the instructional and technological aspects of the plan.

Each local board of education shall submit the local plan it develops to the Department of Public Instruction for evaluation of the parts of the technological and instructional aspects of the plan. The State Board of Education, Superintendent of Public Instruction, after consideration of the evaluations of the Department of Public Instruction, shall approve all local plans that comply with the requirements of the State school technology plan.

(b)        After a local school system technology plan is approved by the State Board of Education, Superintendent of Public Instruction, all State funds spent by the local board of education for any aspect of school technology shall be used to implement the local school system technology plan.

(c)        State School Technology Fund dollars that are allocated to the local school administrative unit to implement the plan shall not be expended until the plan has been approved by the State Board of Education. Superintendent of Public Instruction."

SECTION 54.  G.S. 115C-102.6D reads as rewritten:

"§ 115C-102.6D.  Establishment of the State School Technology Fund; allocation and use of funds.

(a)        There is established under the control and direction of the State Board of Education Department of Public Instruction the State School Technology Fund. This fund shall be a nonreverting special revenue fund consisting of any monies appropriated to it by the General Assembly and any monies credited to it under G.S. 20-81.12 from the sale of School Technology special license plates.

(b)        Funds in the State School Technology Fund shall be allocated to local school administrative units as directed by the General Assembly. Funds allocated to each local school administrative unit shall be credited with interest by the State Treasurer pursuant to G.S. 147-69.2 and G.S. 147-69.3.

(c)        Repealed by Session Laws 2009-451, s. 7.31, effective July 1, 2009.

(d)        No local school administrative unit may access technology-related funds until the State Board of Education Superintendent of Public Instruction has approved its school technology plan."

SECTION 55.  G.S. 115C-102.7 reads as rewritten:

"§ 115C-102.7.  Monitoring and evaluation of State and local school system technology plans; reports.

(a)        The Department of Public Instruction shall monitor and evaluate the development and implementation of the State and local school system technology plans. The evaluation shall consider the effects of technology on student learning, the effects of technology on students' workforce readiness, the effects of technology on teacher productivity, and the cost-effectiveness of the technology.

(a1)      Repealed by Session Laws 1997-18, s. 15(k).

(b)        Repealed by Session Laws 2009-451, s. 7.31, effective July 1, 2009.

(c)        The Department of Public Instruction shall randomly check local school system technology plans to ensure that local school administrative units are implementing their plans as approved. The Department shall report to the State Board of Education Superintendent of Public Instruction on which local school administrative units are not complying with their plans. The report shall include the reasons these local school administrative units are out of compliance and a recommended plan of action to support each of these local school administrative units in carrying out their plans."

SECTION 56.  G.S. 115C-105.20 reads as rewritten:

"§ 115C-105.20.  School-Based Management and Accountability Program.

(a)        The General Assembly believes that all children can learn. It is the intent of the General Assembly that the mission of the public school community is to challenge with high expectations each child to learn, to achieve, and to fulfill his or her potential. With that mission as its a guide, the State Board of Education Superintendent of Public Instruction shall develop a School-Based Management and Accountability Program. The primary goal of the Program shall be to improve student performance.

(b)        In order to support local boards of education and schools in the implementation of this Program, the State Board of Education Superintendent of Public Instruction shall adopt guidelines, including guidelines to:

(1)        Assist local boards and schools in the development and implementation of school-based management under Part 2 of this Article.

(2)        Recognize the schools that meet or exceed their goals.

(3)        Identify low-performing schools under G.S. 115C-105.37, and create assistance teams that the Board Superintendent may assign to schools identified as low-performing under G.S. 115C-105.37. The assistance teams should consist of currently practicing teachers and staff, representatives of institutions of higher education, school administrators, and others the State Board Superintendent considers appropriate.

(4)        Enable assistance teams to make appropriate recommendations under G.S. 115C-105.38.

(5)        Establish a process to resolve disputes between local boards and schools in the development and implementation of school improvement plans under G.S. 115C-105.27. This process shall provide for final resolution of the disputes."

SECTION 57.  G.S. 115C-105.25(b)(6) reads as rewritten:

"(b)      Subject to the following limitations, local boards of education may transfer and may approve transfers of funds between funding allotment categories:

(6)        Funds allocated for vocational education may be transferred only in accordance with any rules that the State Board of Education Superintendent of Public Instruction considers appropriate to ensure compliance with federal regulations."

SECTION 58.  G.S. 115C-105.26 reads as rewritten:

"§ 115C-105.26.  Waivers of State laws, rules, or policies.

(a)        When included as part of a school improvement plan accepted under G.S. 115C-105.27, local boards of education shall submit requests for waivers of State laws, rules, or policies to the State Board of Education. Superintendent of Public Instruction. A request for a waiver shall (i) identify the school making the request, (ii) identify the State laws, rules, or policies that inhibit the school's ability to improve student performance, (iii) set out with specificity the circumstances under which the waiver may be used, and (iv) explain how the requested waiver will permit the school to improve student performance. Except as provided in subsection (c) of this section, the State Board Superintendent shall grant waivers only for the specific schools for which they are requested and shall be used only under the specific circumstances for which they are requested.

(b)        When requested as part of a school improvement plan, the State Board of Education Superintendent of Public Instruction may grant waivers of:

(1)        State laws pertaining to class size and teacher certification; and

(2)        State rules and policies, except those pertaining to public school State salary schedules and employee benefits for school employees, the instructional program that must be offered under the Basic Education Program, the system of employment for public school teachers and administrators set out in G.S. 115C-287.1 and G.S. 115C-325, health and safety codes, compulsory attendance, the minimum lengths of the school day and year, and the Uniform Education Reporting System.

(c)        The State Board Superintendent also may grant requests received from local boards for waivers of State laws, rules, or policies that affect the organization, duties, and assignment of central office staff only. However, none of the duties to be performed under G.S. 115C-436 may be waived.

(c1)      The State Board Superintendent also may grant requests received from local boards for waivers of State laws, rules, or policies that require that each local school administrative unit provide at least one alternative school or at least one alternative learning program.

(d)        Notwithstanding subsections (b) and (c) of this section, the State Board Superintendent shall not grant waivers of G.S. 115C-12(16)b. regarding the placement of State-allotted office support personnel, teacher assistants, and custodial personnel on the salary schedule adopted by the State Board.Superintendent.

(e)        Notwithstanding subsection (b) of this section, the State Board Superintendent may grant requests received from local boards for waivers of State laws, rules, or policies pertaining to the placement of principals on the State salary schedule for public school administrators in order to provide financial incentives to encourage principals to accept employment in a school that has been identified as low-performing under G.S. 115C-105.37. The State Board Superintendent shall act on requests under this subsection at the first Board meeting following within a month of receipt of each request.

(f)         Except as provided in subsection (e) of this section, the State Board The Superintendent shall act within 60 days of receipt of all requests for waivers under this section.

(g)        The State Board Superintendent shall, on a regular basis, review all waivers it has granted to determine whether any rules should be repealed or modified or whether the Board Superintendent should recommend to the General Assembly the repeal or modification of any laws."

SECTION 59.  G.S. 115C-105.20 reads as rewritten:

"§ 115C-105.27.  Development and approval of school improvement plans.

(a)        In order to improve student performance, each school shall develop a school improvement plan that takes into consideration the annual performance goal for that school that is set by the State Board Superintendent of Public Instruction under G.S. 115C-105.35 and the goals set out in the mission statement for the public schools adopted by the State Board of Education. Superintendent. The principal of each school, representatives of the assistant principals, instructional personnel, instructional support personnel, and teacher assistants assigned to the school building, and parents of children enrolled in the school shall constitute a school improvement team to develop a school improvement plan to improve student performance. Representatives of the assistant principals, instructional personnel, instructional support personnel, and teacher assistants shall be elected by their respective groups by secret ballot. Unless the local board of education has adopted an election policy, parents shall be elected by parents of children enrolled in the school in an election conducted by the parent and teacher organization of the school or, if none exists, by the largest organization of parents formed for this purpose. Parents serving on school improvement teams shall reflect the racial and socioeconomic composition of the students enrolled in that school and shall not be members of the building-level staff. Parental involvement is a critical component of school success and positive student achievement; therefore, it is the intent of the General Assembly that parents, along with teachers, have a substantial role in developing school improvement plans. To this end, school improvement team meetings shall be held at a convenient time to assure substantial parent participation.

All school improvement plans shall be, to the greatest extent possible, data-driven. School improvement teams shall use the Education Value Added Assessment System (EVAAS) or a compatible and comparable system approved by the State Board of Education, Superintendent, to analyze student data to identify root causes for problems and to determine actions to address them. School improvement plans shall contain clear, unambiguous targets, explicit indicators and actual measures, and expeditious time frames for meeting the measurement standards.

…

(d)        The local board of education shall accept or reject the school improvement plan. The local board shall not make any substantive changes in any school improvement plan that it accepts. If the local board rejects a school improvement plan, the local board shall state with specificity its reasons for rejecting the plan; the school improvement team may then prepare another plan, present it to the principals, assistant principals, instructional personnel, instructional support personnel, and teacher assistants assigned to the school building for a vote, and submit it to the local board to accept or reject. If no school improvement plan is accepted for a school within 60 days after its initial submission to the local board, the school or the local board may ask to use the process to resolve disagreements recommended in the guidelines developed by the State Board Superintendent of Public Instruction under G.S. 115C-105.20(b)(5). If this request is made, both the school and local board shall participate in the process to resolve disagreements. If there is no request to use that process, then the local board may develop a school improvement plan for the school. The General Assembly urges the local board to utilize the school's proposed school improvement plan to the maximum extent possible when developing such a plan.

…."

SECTION 60.  G.S. 115C-105.31 reads as rewritten:

"§ 115C-105.31.  Creation of the Task Force on School-Based Management.

(a)        There is created the Task Force on School-Based Management under the State Board of Education.Department of Public Instruction.

The Task Force shall be composed of 21 members appointed as follows:

(1)        The Superintendent of Public Instruction;

(2)        One member of the State Board of Education, Education;

(2a)      one One parent of a public school child, and two at-large members appointed by the State Board of Education; Superintendent of Public Instruction;

(3)        Two members of the Senate appointed by the President Pro Tempore of the Senate;

(4)        Two members of the House of Representatives appointed by the Speaker of the House of Representatives;

(5)        One member of a local board of education appointed by the President Pro Tempore of the Senate after receiving recommendations from The North Carolina State School Boards Association, Inc.;

(6)        One member of a local board of education appointed by the Speaker of the House of Representatives after receiving recommendations from The North Carolina State School Boards Association, Inc.;

(7)        One local school superintendent appointed by the President Pro Tempore of the Senate after receiving recommendations from the North Carolina Association of School Administrators;

(8)        One local school superintendent appointed by the Speaker of the House of Representatives after receiving recommendations from the North Carolina Association of School Administrators;

(9)        One school principal appointed by the President Pro Tempore of the Senate after receiving recommendations from the Tar Heel Association of Principals/Assistant Principals and the Division of Administrators of the North Carolina Association of Educators;

(10)      One school principal appointed by the Speaker of the House of Representatives after receiving recommendations from the Tar Heel Association of Principals/Assistant Principals and the Division of Administrators of the North Carolina Association of Educators;

(11)      One school teacher appointed by the President Pro Tempore of the Senate after receiving recommendations from the North Carolina Association of Educators, Inc., the North Carolina Federation of Teachers, and the Professional Educators of North Carolina, Inc.;

(12)      One school teacher appointed by the Speaker of the House of Representatives after receiving recommendations from the North Carolina Association of Educators, Inc., the North Carolina Federation of Teachers, and the Professional Educators of North Carolina, Inc.;

(13)      One representative of business and industry appointed by the Governor;

(14)      One representative of institutions of higher education appointed by the Board of Governors of The University of North Carolina;

(15)      One county commissioner appointed by the State Board of Education Superintendent of Public Instruction after receiving recommendations from the North Carolina Association of County Commissioners; and

(16)      The Secretary of Health and Human Services or the Secretary's designee.

Members of the Task Force shall serve for two-year terms.

All members of the Task Force shall be voting members. Vacancies in the appointed membership shall be filled by the officer who made the initial appointment. The Task Force on School-Based Management shall select a member of the Task Force to serve as chair of the Task Force.

Members of the Task Force shall receive travel and subsistence expenses in accordance with the provisions of G.S. 120-3.1, G.S. 138-5, and G.S. 138-6.

(b)        The Task Force shall:

(1)        Advise the State Board of Education Superintendent of Public Instruction and Secretary of Health and Human Services on the development of guidelines for local boards of education and schools to implement school-based management as part of the School-Based Management and Accountability Program;

(2)        Advise the State Board of Education Superintendent of Public Instruction and the Secretary of Health and Human Services on how to assist the public schools and residential schools so as to facilitate the implementation of school-based management;

(3)        Advise the State Board of Education Superintendent of Public Instruction and Secretary of Health and Human Services about publications to be produced by the Department of Public Instruction on the development and implementation of school improvement plans;

(4)        Report annually to the State Board of Education Superintendent of Public Instruction on the implementation of school-based management in the public schools on the first Friday in December. This report may contain a summary of recommendations for changes to any law, rule, and policy that would improve school-based management.

(c)        The Department of Public Instruction shall, with the approval of the State Board of Education, shall provide staff to the Task Force at the request of the Task Force.

(d)        The State Board of Education Superintendent of Public Instruction shall appoint a Director of the Task Force on School-Based Management."

SECTION 61.  G.S. 115C-105.32 reads as rewritten:

"§ 115C-105.32.  Parent involvement programs and conflict resolution programs as part of school improvement plans.

A school is encouraged to include a comprehensive parent involvement program as part of its school improvement plan under G.S. 115C-105.27. The State Board of Education Superintendent of Public Instruction shall develop a list of recommended strategies that it determines to be effective, which building level committees may use to establish parent involvement programs designed to meet the specific needs of their schools. The Board shall make the list available to local school administrative units and school buildings by the beginning of the 1994-95 school year.

A school is encouraged to review its need for a comprehensive conflict resolution program as part of the development of its school improvement plan under G.S. 115C-105.27. If a school determines that this program is needed, it may select from the list developed by the State Board of Education Superintendent of Public Instruction under G.S. 115C-81(a4) or may develop its own materials and curricula to be approved by the local board of education."

SECTION 62.  G.S. 115C-105.33 reads as rewritten:

"§ 115C-105.33.  Safe and orderly schools.

A school improvement team or a parent organization at a school may ask the local board of education to provide assistance in promoting or restoring safety and an orderly learning environment at a school. The school improvement team or parent organization shall file a copy of this request with the State Board. Superintendent of Public Instruction. If the local board fails to provide adequate assistance to the school, then the school improvement team or parent organization may ask the State Board Superintendent to provide an assistance team to the school.

The State Board Superintendent may provide an assistance team, established under G.S. 115C-105.38, to a school in order to promote or restore safety and an orderly learning environment at that school if one of the following applies:

(1)        The local board of education or superintendent requests that the State Board Superintendent provide an assistance team to a school and the State Board Superintendent determines that the school needs assistance.

(2)        The State Board Superintendent determines within 10 days after its receipt of the request for assistance from a school improvement team or parent organization of a school that the school needs assistance and that the local board has failed to provide adequate assistance to that school.

If an assistance team is assigned to a school under this section, the team shall spend a sufficient amount of time at the school to assess the problems at the school, assist school personnel with resolving those problems, and work with school personnel and others to develop a long-term plan for restoring and maintaining safety and an orderly learning environment at the school. The assistance team also shall make recommendations to the local board of education and the superintendent on actions the board and the superintendent should consider taking to resolve problems at the school. These recommendations shall be in writing and are public records. If an assistance team is assigned to a school under this section, the powers given to the State Board Superintendent and the assistance team under G.S. 115C-105.38 and G.S. 115C-105.39 shall apply as if the school had been identified as low-performing under this Article."

SECTION 63.  G.S. 115C-105.35 reads as rewritten:

"§ 115C-105.35.  Annual performance goals.

(a)        The School-Based Management and Accountability Program shall (i) focus on student performance in the basics of reading, mathematics, and communications skills in elementary and middle schools, (ii) focus on student performance in courses required for graduation and on other measures required by the State Board Superintendent of Public Instruction in the high schools, and (iii) hold schools accountable for the educational growth of their students. To those ends, the State Board Superintendent shall design and implement an accountability system that sets annual performance standards for each school in the State in order to measure the growth in performance of the students in each individual school. During the 2004-2005 school year and at least every five years thereafter, the State Board Superintendent shall evaluate the accountability system and, if necessary, modify the testing standards to assure the testing standards continue to reasonably reflect the level of performance necessary to be successful at the next grade level or for more advanced study in the content area.

As part of this evaluation, the Board Superintendent shall, where available, review the historical trend data on student academic performance on State tests. To the extent that the historical trend data suggest that the current standards for student performance may not be appropriate, the State Board Superintendent shall adjust the standards to assure that they continue to reflect the State's high expectations for student performance.

(b)        For purposes of this Article, the State Board Superintendent shall include a "closing the achievement gap" component in its the measurement of educational growth in student performance for each school. The "closing the achievement gap" component shall measure and compare the performance of each subgroup in a school's population to ensure that all subgroups as identified by the State Board Superintendent are meeting State standards.

(c)        The State Board Superintendent shall consider incorporating into the School-Based Management and Accountability Program a character and civic education component which may include a requirement for student councils."

SECTION 64.  G.S. 115C-105.36 reads as rewritten:

"§ 115C-105.36.  Performance recognition.

(a)        The personnel in schools that achieve a level of expected growth greater than one hundred percent (100%) at a level to be determined by the State Board of Education Superintendent of Public Instruction are eligible for financial awards in amounts set by the State Board. Superintendent. Schools and personnel shall not be required to apply for these awards. For the purpose of this section, "personnel" includes the principal, assistant principal, instructional personnel, instructional support personnel, and teacher assistants (i) serving students in one or more of the grades kindergarten through 12 or (ii) assigned to a public school prekindergarten program that is located within a public elementary school and is designed to prepare students for kindergarten at that school.

(b)        The State Board Superintendent shall establish a procedure to allocate the funds for these awards to the local school administrative units in which the eligible schools are located. Funds shall become available for expenditure July 1 of each fiscal year. Funds shall remain available until November 30 of the subsequent fiscal year for expenditure for awards to the personnel. Each local school administrative unit is encouraged to make these awards to each eligible person no later than the first regular teacher payroll following the local unit's receipt of the funds, and shall make these awards to each eligible person no later than the second regular teacher payroll following the local unit's receipt of the funds."

SECTION 65.  G.S. 115C-105.37 reads as rewritten:

"§ 115C-105.37.  Identification of low-performing schools.

(a)        The State Board of Education Superintendent of Public Instruction shall design and implement a procedure to identify low-performing schools on an annual basis. Low-performing schools are those in which there is a failure to meet the minimum growth standards, as defined by the State Board, Superintendent, and a majority of students are performing below grade level.

(a1)      By July 10 of each year, each local school administrative unit shall do a preliminary analysis of test results to determine which of its schools the State Board Superintendent may identify as low-performing under this section. The superintendent then shall proceed under G.S. 115C-105.39. In addition, within 30 days of the initial identification of a school as low-performing by the local school administrative unit or the State Board, Superintendent, whichever occurs first, the superintendent shall submit to the local board a preliminary plan for addressing the needs of that school, including how the superintendent and other central office administrators will work with the school and monitor the school's progress. Within 30 days of its receipt of this plan, the local board shall vote to approve, modify, or reject this plan. Before the board makes this vote, it shall make the plan available to the public, including the personnel assigned to that school and the parents and guardians of the students who are assigned to the school, and shall allow for written comments. The board shall submit the plan to the State Board Superintendent within five days of the board's vote. The State Board Superintendent shall review the plan expeditiously and, if appropriate, may offer recommendations to modify the plan. The local board shall consider any recommendations made by the State Board. Superintendent.

(b)        Each school that the State Board Superintendent identifies as low-performing shall provide written notification to the parents of students attending that school. The written notification shall include a statement that the State Board of Education Superintendent has found that the school has "failed to meet the minimum growth standards, as defined by the State Board, Superintendent, and a majority of students in the school are performing below grade level." This notification also shall include information about the plan developed under subsection (a1) of this section and a description of any additional steps the school is taking to improve student performance."

SECTION 66.  G.S. 115C-105.37A reads as rewritten:

"§ 115C-105.37A.  Continually low-performing schools; definition; assistance and intervention; reassignment of students.

(a)        Definition of Continually Low-Performing Schools. - A continually low-performing school is a school that has received State-mandated assistance and has been designated by the State Board Superintendent of Public Instruction as low performing for at least two of three consecutive years. If the State Board Superintendent identifies a school as continually low performing:

(1)        The school improvement team at that school shall review its school improvement plan to ensure consistency with the plan adopted pursuant to G.S. 115C-105.38(b)(3), and

(2)        The plan must be reviewed and approved by the State Board of Education. Superintendent.

(b)        Assistance to Schools That Are Low Performing for Two Years. - If a school that has received State-mandated assistance is designated by the State Board Superintendent as low performing for two consecutive years or for two of three consecutive years, the State Board Superintendent shall provide a series of progressive assistance and intervention strategies to that school. These strategies shall be designed to improve student achievement and to maintain student achievement at appropriate levels and may include, to the extent that funds are available for this purpose, assistance such as reductions in class size, extension of teacher and assistant principal contracts, extension of the instructional year, and grant-based assistance.

(c)        Intervention in Schools That Are Low Performing for Three or More Years. - The State Board of Education Superintendent of Public Instruction shall develop and implement a series of actions for providing assistance and intervention to schools that have previously received State- mandated assistance and have been designated by the State Board Superintendent as low performing for three or more consecutive years or for at least three out of four years. These actions shall be the least intrusive actions that are consistent with the need to improve student achievement at each such school and shall be adapted to the unique characteristics of each such school and the effectiveness of other actions developed or implemented to improve student achievement at each such school."

SECTION 67.  G.S. 115C-105.38 reads as rewritten:

"§ 115C-105.38.  Assistance teams; review by State Board.Superintendent of Public Instruction.

(a)        The State Board of Education Superintendent of Public Instruction may assign an assistance team to any school identified as low-performing under this Article or to any other school that requests an assistance team and that the State Board Superintendent determines would benefit from an assistance team. The State Board Superintendent shall give priority to low-performing schools in which the educational performance of the students is declining. The Department of Public Instruction shall, with the approval of the State Board, shall provide staff as needed and requested by an assistance team.

(b)        When assigned to an identified low-performing school, an assistance team shall:

(1)        Review and investigate all facets of school operations and assist in developing recommendations for improving student performance at that school.

(2)        Evaluate at least semiannually the personnel assigned to the school and make findings and recommendations concerning their performance.

(3)        Collaborate with school staff, central offices, and local boards of education in the design, implementation, and monitoring of a plan that, if fully implemented, can reasonably be expected to alleviate problems and improve student performance at that school.

(4)        Make recommendations as the school develops and implements this plan.

(5)        Review the school's progress.

(6)        Report, as appropriate, to the local board of education, the community, and the State Board Superintendent on the school's progress. If an assistance team determines that an accepted school improvement plan developed under G.S. 115C-105.27 is impeding student performance at a school, the team may recommend to the local board that it vacate the relevant portions of that plan and direct the school to revise those portions.

(b1)      Report to the State Board of Education Superintendent of Public Instruction if a school and its local board of education are not responsive to the team's recommendations. A copy of that report shall be made available to the local board, and the local board shall have an opportunity to respond. Notwithstanding G.S. 115C-36 and other provisions of this Chapter, if the State Board Superintendent confirms that the school and local board have failed to take appropriate steps to improve student performance at that school, the State Board Superintendent shall assume all powers and duties previously conferred upon that local board and that school and shall have general control and supervision of all matters pertaining to that school until student performance at the school meets or exceeds the standards set for the school. The State Board Superintendent may, as it considers appropriate, delegate any powers and duties to that local board or school before the school meets or exceeds those standards.

(c)        If a school fails to improve student performance after assistance is provided under this section, the assistance team may recommend that the assistance continues or that the State Board Superintendent take further action under G.S. 115C-105.39.

(d)        The State Board Superintendent shall annually review the progress made in identified low-performing schools."

SECTION 68.  G.S. 115C-105.38A reads as rewritten:

"§ 115C-105.38A.  Teacher competency assurance.

(a)        General Knowledge Test. -

(1)        Each assistance team assigned to a low-performing school during the 1997-98 school year shall review the team's evaluations of certified staff members to determine which staff members have been designated by the team as Category 3 teachers. The assistance team shall then determine whether lack of general knowledge contributed to the Category 3 designation. If the assistance team determines that a certified staff member's lack of general knowledge contributed to that staff member being designated as a Category 3 teacher, the assistance team shall submit the staff member's name to the State Board. Upon receipt of the notification, the State Board shall require that the certified staff members identified by the assistance teams demonstrate their general knowledge by acquiring a passing score on a test designated by the State Board. The State Board shall administer the general knowledge test required under this subdivision at the end of the 1997-98 school year.

(2)        During the 1998-99 school year and thereafter, either the principal assigned to a low-performing school or the assistance team assigned to a low-performing school may recommend to the State Board Superintendent that a certified staff member take a general knowledge test. A principal or an assistance team may make this recommendation if the principal or the assistance team determines that the certified staff member's performance is impaired by the staff member's lack of general knowledge. After receipt of the notification, but prior to the end of the fiscal year, the State Board Superintendent shall require that all certified staff members identified under this subdivision demonstrate their general knowledge by acquiring a passing score on a test designated by the State Board. Superintendent.

(b)        Repealed by Session Laws 1998-5, s. 1.

(c)        Remediation. - Certified staff members who do not acquire a passing score on the test required under subsection (a) of this section shall engage in a remediation plan based upon the deficiencies identified by the test, or an assistance team, or a principal. The remediation plan for deficiencies of individual certified staff members shall consist of up to a semester of university or community college training or coursework or other similar activity to correct the deficiency. The remediation shall be developed by the State Board of Education Superintendent of Public Instruction in consultation with the Board of Governors of The University of North Carolina. The State Board Superintendent shall reimburse the institution providing the remediation any tuition and fees incurred under this section. If the remediation plan requires that the staff member engage in a full-time course of study or training, the staff member shall be considered on leave with pay.

(d)        Retesting; Dismissal. - Upon completion of the remediation plan required under subsection (c) of this section, the certified staff member shall take the general knowledge test a second time. If the certified staff member fails to acquire a passing score on the second test, the State Board Superintendent shall begin a dismissal proceeding under G.S. 115C-325(q)(2a).

(e)        Repealed by Session Laws 1998-5, s.1.

(f)         Other Actions Not Precluded. - Nothing in this section shall be construed to restrict or postpone the following actions:

(1)        The dismissal of a principal under G.S. 115C-325(q)(1);

(2)        The dismissal of a teacher, assistant principal, director, or supervisor under G.S. 115C-325(q)(2);

(3)        The dismissal or demotion of a career employee for any of the grounds listed under G.S. 115C-325(e);

(4)        The nonrenewal of a school administrator's or probationary teacher's contract of employment; or

(5)        The decision to grant career status.

(g)        Repealed by Session Laws 1998-5, s. 1."

SECTION 69.  G.S. 115C-105.39 reads as rewritten:

"§ 115C-105.39.  Dismissal or removal of personnel; appointment of interim superintendent.

(a)        Within 30 days of the initial identification of a school as low-performing, whether by the local school administrative unit under G.S. 115C-105.37(a1) or by the State Board Superintendent of Public Instruction under G.S. 115C-105.37(a), the superintendent shall take one of the following actions concerning the school's principal: (i) recommend to the local board that the principal be retained in the same position, (ii) recommend to the local board that the principal be retained in the same position and a plan of remediation should be developed, (iii) recommend to the local board that the principal be transferred, or (iv) proceed under G.S. 115C-325 to dismiss or demote the principal. The principal may be retained in the same position without a plan for remediation only if the principal was in that position for no more than two years before the school is identified as low-performing. The principal shall not be transferred to another principal position unless (i) it is in a school classification in which the principal previously demonstrated at least 2 years of success, (ii) there is a plan to evaluate and provide remediation to the principal for at least one year following the transfer to assure the principal does not impede student performance at the school to which the principal is being transferred; and (iii) the parents of the students at the school to which the principal is being transferred are notified. The principal shall not be transferred to another low-performing school in the local school administrative unit. If the superintendent intends to recommend demotion or dismissal, the superintendent shall notify the local board. Within 15 days of (i) receiving notification that the superintendent intends to proceed under G.S. 115C-325, or (ii) its decision concerning the superintendent's recommendation, but no later than September 30, the local board shall submit to the State Board Superintendent a written notice of the action taken and the basis for that action. If the State Board Superintendent does not assign an assistance team to that school or if the State Board Superintendent assigns an assistance team to that school and the superintendent proceeds under G.S. 115C-325 to dismiss or demote the principal, then the State Board Superintendent shall take no further action. If the State Board Superintendent assigns an assistance team to the school and the superintendent is not proceeding under G.S. 115C-325 to dismiss or demote the principal, then the State Board Superintendent shall vote to accept, reject, or modify the local board's recommendations. The State Board Superintendent shall notify the local board of its the action within five days. If the State Board Superintendent rejects or modifies the local board's recommendations and does not recommend dismissal of the principal, the State Board's Superintendent's notification shall include recommended action concerning the principal's assignment or terms of employment. Upon receipt of the State Board's Superintendent's notification, the local board shall implement the State Board's Superintendent's recommended action concerning the principal's assignment or terms of employment unless the local board asks the State Board Superintendent to reconsider that recommendation. The State Board Superintendent shall provide an opportunity for the local board to be heard before the State Board Superintendent acts on the local board's request for a reconsideration. The State Board Superintendent shall vote to affirm or modify itshis or her original recommended action and shall notify the local board of its that action within five days. Upon receipt of the State Board's Superintendent's notification, the local board shall implement the State Board's Superintendent's final recommended action concerning the principal's assignment or terms of employment. If the State Board Superintendent rejects or modifies the local board's action and recommends dismissal of the principal, the State Board Superintendent shall proceed under G.S. 115C-325(q)(1).

(b)        The State Board Superintendent shall proceed under G.S. 115C-325(q)(2) for the dismissal of teachers, assistant principals, directors, and supervisors assigned to a school identified as low-performing in accordance with G.S. 115C-325(q)(2).

(c)        The State Board Superintendent may appoint an interim superintendent in a local school administrative unit:

(1)        Upon the identification of more than half the schools in that unit as low-performing under G.S. 115C-105.37; or

(2)        Upon the recommendation from an assistance team assigned to a school located in that unit that has been identified as low-performing under G.S. 115C-105.37. This recommendation shall be based upon a finding that the superintendent has failed to cooperate with the assistance team or has otherwise hindered that school's ability to improve.

The State Board Superintendent may assign any of the powers and duties of the local superintendent and the local finance officer to the interim superintendent that the Board Superintendent considers are necessary or appropriate to improve student performance in the local school administrative unit. The interim superintendent shall perform all of these assigned powers and duties. The State Board of Education Superintendent may terminate the contract of any local superintendent entered into on or after July 1, 1996, when it appoints an interim superintendent. The Administrative Procedure Act shall apply to that decision. Neither party to that contract is entitled to damages.

(d)        In the event the State Board Superintendent has appointed an interim superintendent and the State Board Superintendent determines that the local board of education has failed to cooperate with the interim superintendent or has otherwise hindered the ability to improve student performance in that local school administrative unit or in a school in that unit, the State Board Superintendent may suspend any of the powers and duties of the local board of education that the State Board Superintendent considers are necessary or appropriate to improve student performance in the local school administrative unit. The State Board Superintendent shall perform all of these assigned powers and duties for a period of time to be specified by the State Board. Superintendent.

(e)        If the State Board Superintendent suspends any of the powers and duties of the local board of education under subsection (d) of this section and subsequently determines it is necessary to change the governance of the local school administrative unit in order to improve student performance, the State Board Superintendent may recommend this change to the General Assembly, which shall consider, at its next session, the future governance of the identified local school administrative unit."

SECTION 70.  G.S. 115C-105.40 reads as rewritten:

"§ 115C-105.40.  Student academic performance standards.

The State Board of Education Superintendent of Public Instruction shall develop a plan to create rigorous student academic performance standards for kindergarten through eighth grade and student academic performance standards for courses in grades 9-12. The performance standards shall align, whenever possible, with the student academic performance standards developed for the National Assessment of Educational Progress (NAEP). The plan also shall include clear and understandable methods of reporting individual student academic performance to parents."

SECTION 71.  G.S. 115C-105.41 reads as rewritten:

"§ 115C-105.41.  Students who have been placed at risk of academic failure; personal education plans.

Local school administrative units shall identify students who are at risk for academic failure and who are not successfully progressing toward grade promotion and graduation, beginning no later than the fourth grade. Identification shall occur as early as can reasonably be done and can be based on grades, observations, State assessments, and other factors, including reading on grade level, that impact student performance that teachers and administrators consider appropriate, without having to await the results of end-of-grade or end-of-course tests. No later than the end of the first quarter, or after a teacher has had up to nine weeks of instructional time with a student, a personal education plan for academic improvement with focused intervention and performance benchmarks shall be developed or updated for any student at risk of academic failure who is not performing at least at grade level, as identified by the State end-of-grade test and other factors noted above. Focused intervention and accelerated activities should include research-based best practices that meet the needs of students and may include coaching, mentoring, tutoring, summer school, Saturday school, and extended days. Local school administrative units shall provide these activities free of charge to students. Local school administrative units shall also provide transportation free of charge to all students for whom transportation is necessary for participation in these activities.

Local school administrative units shall give notice of the personal education plan and a copy of the personal education plan to the student's parent or guardian. Parents should be included in the implementation and ongoing review of personal education plans.

Local school administrative units shall certify that they have complied with this section annually to the State Board of Education. Superintendent of Public Instruction. The State Board of Education Superintendent shall periodically review data on the progress of identified students and report to the Joint Legislative Education Oversight Committee.

No cause of action for monetary damages shall arise from the failure to provide or implement a personal education plan under this section."

SECTION 72.  G.S. 115C-105.46 reads as rewritten:

"§ 115C-105.46.  State Board of Education Superintendent of Public Instruction's responsibilities.

In order to implement this Article, the State Board of Education:Superintendent of Public Instruction:

(1)        Shall adopt guidelines for developing local plans under G.S. 115C-105.47.

(2)        Shall provide, in cooperation with the Board of Governors of The University of North Carolina, ongoing technical assistance to the local school administrative units in the development, implementation, and evaluation of their local plans under G.S. 115C-105.47.

(3)        May require a local board of education to withhold the salary of any administrator or other employee of a local school administrative unit who delays or refuses to prepare and implement local safe school plans in accordance with G.S. 115C-105.47.

(4)        May revoke the certificate of the superintendent, pursuant to G.S. 115C-274(c), for failure to fulfill the superintendent's duties under a local safe school plan.

(5)        Shall adopt policies that define who is an at-risk student."

SECTION 73.  G.S. 115C-105.47 reads as rewritten:

"§ 115C-105.47.  Local safe school plans.

(a)        Each local board of education shall develop a local school administrative unit safe school plan designed to provide that every school in the local school administrative unit is safe, secure, and orderly, that there is a climate of respect in every school, and that appropriate personal conduct is a priority for all students and all public school personnel. The board shall include parents, the school community, representatives of the community, and others in the development or review of this plan. The plan may be developed by or in conjunction with other committees.

(b)        Each plan shall include each of the following components:

(1)        Clear statements of the standard of behavior expected of students at different grade levels and of school personnel and clear statements of the consequences that will result from one or more violations of those standards. There shall be a statement of consequences for students under the age of 13 who physically assault and seriously injure a teacher or other individual on school property or at a school-sponsored or school-related activity. The consequences may include placement in an alternative setting.

(2)        A clear statement of the responsibility of the superintendent for coordinating the adoption and the implementation of the plan, evaluating principals' performance regarding school safety, monitoring and evaluating the implementation of safety plans at the school level, and coordinating with local law enforcement and court officials appropriate aspects of implementation of the plan. The statement of responsibility shall provide appropriate disciplinary consequences that may occur if the superintendent fails to carry out these responsibilities. These consequences may include a reprimand in the superintendent's personnel file or withholding of the superintendent's salary, or both.

(3)        A clear statement of the responsibility of the school principal for restoring, if necessary, and maintaining a safe, secure, and orderly school environment and of the consequences that may occur if the principal fails to meet that responsibility. The principal's duties shall include exhibiting appropriate leadership for school personnel and students, providing for alternative placements for students who are seriously disruptive, reporting all criminal acts under G.S. 115C-288(g), and providing appropriate disciplinary consequences for disruptive students. The consequences to the principal that may occur shall include a reprimand in the principal's personnel file and disciplinary proceedings under G.S. 115C-325.

(4)        Clear statements of the roles of other administrators, teachers, and other school personnel in restoring, if necessary, and maintaining a safe, secure, and orderly school environment.

(5)        Procedures for identifying and serving the needs of students who are at risk of academic failure or of engaging in disruptive or disorderly behavior.

(6)        Mechanisms for assessing the needs of disruptive and disorderly students and students who are at risk of academic failure, and providing them with services to assist them in achieving academically and in modifying their behavior, and removing them from the classroom when necessary.

(7)        Measurable objectives for improving school safety and order.

(8)        Measures of the effectiveness of efforts to assist students at risk of academic failure or of engaging in disorderly or disruptive behavior. The measures shall include an analysis of the effectiveness of procedures adopted under G.S. 115C-105.48 for students referred to alternative schools and alternative learning programs.

(9)        Professional development clearly matched to the goals and objectives of the plan. This professional development shall include a component to train appropriate school personnel in the management of disruptive or dangerous student behavior. Appropriate school personnel may include, but is not limited to, teachers, teacher assistants, school administrators, bus drivers, school resource officers, school psychologists, and school counselors. The training shall include instruction in positive management of student behavior, effective communication for defusing and deescalating disruptive or dangerous behavior, and safe and appropriate use of seclusion and restraint. The appropriate personnel with priority for the training shall include those staff members who are most likely to be called upon to prevent or address disruptive or dangerous student behavior. Each local board of education shall include in this component of its safe school plan procedures to evaluate the effectiveness of this training in preventing or addressing disruptive or dangerous student behavior. Local boards of education are encouraged to use available sources of discretionary revenue to implement the plan to train personnel in the management of disruptive or dangerous student behavior. Local boards may only be required to implement the behavior management training component of the plan to the extent that funds have been appropriated for this purpose by the General Assembly or by local units of government. By January 1, 2006, local boards of education shall amend their safe school plans to include this training component.

(10)      A plan to work effectively with local law enforcement officials and court officials to ensure that schools are safe and laws are enforced.

(11)      A plan to provide access to information to the school community, parents, and representatives of the local community on the ongoing implementation of the local plan, monitoring of the local plan, and the integration of educational and other services for students into the total school program.

(12)      The name and role description of the person responsible for implementation of the plan.

(13)      Direction to school improvement teams within the local school administrative unit to consider the special conditions at their schools and to incorporate into their school improvement plans the appropriate components of the local plan for:

a.         maintaining safe and orderly schools; and

b.         addressing the needs of students who are at risk of academic failure or who are disruptive or both.

(13a)    A clear statement of the services that will be provided to students who are assigned to an alternative school or an alternative learning program.

(14)      A clear and detailed statement of the planned use of federal, State, and local funds allocated for at-risk students and alternative schools and alternative learning programs.

(15)      Any other information the local board considers necessary or appropriate to implement this Article.

A local board may develop its plan under this section by conducting a comprehensive review of its existing policies, plans, statements, and procedures to determine whether they: (i) are effective; (ii) have been updated to address recent changes in the law; (iii) meet the current needs of each school in the local school administrative unit; and (iv) address the components required to be included in the local plan. The board then may consolidate and supplement any previously developed policies, plans, statements, and procedures that the board determines are effective and updated, meet the current needs of each school, and meet the requirements of this subsection.

Once developed, the board shall submit the local plan to the State Board of Education Superintendent of Public Instruction and shall ensure the plan is available and accessible to parents and the school community. The board shall provide annually to the State Board Superintendent information that demonstrates how the At-Risk Student Services/Alternative Schools Funding allotment has been used to (i) prevent academic failure and (ii) promote school safety.

(c)        A local board may amend the plan as often as it considers necessary or appropriate."

SECTION 74.  G.S. 115C-105.47A reads as rewritten:

"§ 115C-105.47A.  Proposals to establish alternative learning programs or alternative schools.

(a)        Before establishing any alternative learning program or alternative school, the local board of education shall develop a proposal to implement the program or school that includes all of the following:

(1)        The educational and behavioral goals for students assigned to the program or school.

(2)        The policies and procedures for the operation of the program or school based on the State Board's Superintendent of Public Instruction's standards adopted under G.S. 115C-12(24). The policies and procedures shall address the assignment of students to the program or school.

(3)        Identified strategies that will be used to improve student achievement and behavior.

(4)        Documentation that similar programs and schools in or out of the State, or both, have demonstrated success in improving the academic achievement and behavior of students assigned to them.

(5)        The estimated actual cost of operating the program or school. To the extent practicable, this shall include the cost of:

a.         Staffing the program or school with teachers who have at least four years' teaching experience and who have received an overall rating of at least above standard on a formal evaluation and are certified in the areas and grade levels being taught;

b.         Providing optimum learning environments, resources and materials, and high quality, ongoing professional development that will ensure students who are placed in the program or school are provided enhanced educational opportunities in order to achieve their full potential;

c.         Providing support personnel, including school counselors, psychiatrists, clinical psychologists, social workers, nurses, and other professionals to help students and their families work out complex issues and problems;

d.         Maintaining safe and orderly learning environments; and

e.         Providing transitional supports for students exiting the program or school and reentering the referring school.

(6)        Documented support of school personnel and the community for the implementation of the program or school.

(b)        After the local board completes the proposal under subsection (a) of this section, the board shall submit the proposal to the State Board of Education Superintendent of Public Instruction for its review. The State Board Superintendent shall review the proposal expeditiously and, if appropriate, may offer recommendations to modify the proposal. The local board shall consider any recommendations made by the State Board Superintendent before implementing the alternative learning program or alternative school."

SECTION 75.  G.S. 115C-106.2 reads as rewritten:

"§ 115C-106.2.  Purposes.

(a)        The purposes of this Article are to (i) ensure that all children with disabilities ages three through 21 who reside in this State have available to them a free appropriate public education that emphasizes special education and related services designed to meet their unique needs and prepares them for further education, employment, and independent living; (ii) ensure that the rights of these children and their parents are protected; and (iii) enable the State Board of Education and local educational agencies to provide for the education of all children with disabilities.

(b)        In addition to the purposes listed in subsection (a) of this section, the purpose of this Article is to enable the State Board of Education Superintendent of Public Instruction and local educational agencies to implement IDEA in this State. If this Article is silent or conflicts with IDEA, and if IDEA has specific language that is mandatory, then IDEA controls.

(c)        Notwithstanding any other section of this Article, the State Board of Education Superintendent may set standards for the education of children with disabilities that are higher than those required by IDEA."

SECTION 76.  G.S. 115C-106.3(4) reads as rewritten:

"§ 115C-106.3.  Definitions.

The following definitions apply in this Article:

…

(4)        "Free appropriate public education" means special education and related services that:

a.         Are provided at public expense, under public supervision and direction, and without charge;

b.         Meet the standards of the State Board; Superintendent of Public Instruction;

c.         Include an appropriate preschool, elementary school, or secondary school education in the State; and

d.         Are provided in conformity with an individualized education program."

SECTION 77.  G.S. 115C-107.1(c) reads as rewritten:

"(c)       If funds are made available, the State Board Superintendent of Public Instruction and the Secretary of Health and Human Services may adopt an agreement to allow the continuation of early intervention services for children with a disability who are at least three years old but before they enter kindergarten or are eligible to enter kindergarten. If an agreement is adopted under this subsection, then a free appropriate public education is not required to be provided to any child with a disability who continues to receive early intervention services in accordance with that agreement."

SECTION 78.  G.S. 115C-107.2 reads as rewritten:

"§ 115C-107.2.  Duties of State Board of Education. Superintendent of Public Instruction.

(a)        The State Board of Education Superintendent of Public Instruction shall adopt rules to ensure that:

(1)        The requirements of this Article and IDEA are met.

(2)        All educational programs under the supervision of any local educational agency for children with disabilities meet all of the following requirements:

a.         The programs are under the general supervision of individuals in the State who are responsible for educational programs for children with disabilities.

b.         The programs meet the State Board's Superintendent's educational standards.

c.         With respect to homeless children, the programs meet the requirements of 20 U.S.C. § 1431, McKinney-Vento Homeless Assistance Act.

(b)        The rules adopted under subsection (a) of this section shall include rules that:

(1)        Establish standards for the programs of special education to be administered by local educational agencies and by the State Board. Superintendent.

(2)        Ensure that children with disabilities are educated in the least restrictive environment.

(3)        Ensure that local school administrative units make available special education and related services to all preschool children with disabilities whose parents request these services.

(4)        Provide for public hearings, adequate notice of these hearings, and an opportunity for comment from the general public before the adoption of the rules required by this Article.

(5)        Are required in order to receive federal funding under IDEA.

(6)        Provide that, where a local educational agency finds that appropriate services are available from other public agencies or private organizations, the local educational agency may contract for those services rather than provide them directly.

(7)        Enable local educational agencies to identify, evaluate, place, and make other educational decisions for children with disabilities.

(8)        Provide procedural safeguards for children with disabilities and their parents.

(9)        Designate a person in the Department of Public Instruction who is charged with receiving and responding to notices or other legal documents under Part 1D of this Article.

(10)      Support and facilitate local educational agency and school-level system improvement designed to enable children with disabilities to meet the challenging State student academic achievement standards.

(c)        Rules adopted under this section shall be consistent with IDEA and shall comply with G.S. 115C-12(19). Local educational agencies, parents, and other individuals concerned with the education of children with disabilities shall be consulted in the development of rules adopted under this Article.

(d)        The State Board Superintendent shall develop forms for local educational agencies to use in order to comply with this Article. The forms must comply with G.S. 115C-12(19) and may be in an electronic format.

(e)        The State Board Superintendent shall provide technical assistance to local educational agencies at their request.

(f)         The State Board Superintendent shall develop any plans that meet the criteria of IDEA and are required to be submitted to the United States Department of Education.

(g)        The State Board Superintendent shall make available to hearing officers training related to IDEA and its legal interpretations in order to facilitate hearings and reviews under G.S. 115C-109.6."

SECTION 79.  G.S. 115C-107.3 reads as rewritten:

"§ 115C-107.3.  Child find.

(a)        The Board Superintendent of Public Instruction shall require an annual census of all children with disabilities residing in the State, subdivided for "identified" and "suspected" children with disabilities, to be taken in each school year. Suspected children are those in the formal process of being evaluated or identified as children with disabilities. The census shall be conducted annually and shall be completed by October 15, submitted to the Governor and General Assembly and made available to the public by January 15 annually.

(b)        In taking the census, the Board Superintendent requires the cooperation, participation, and assistance of all local educational agencies. Therefore, each local educational agency shall cooperate and participate with and assist the Board Superintendent in conducting the census.

(c)        The census shall include the number of children identified and suspected with disabilities, their age, the nature of their disability, their county or city of residence, their local school administrative unit residence, whether they are being provided special educational or related services and if so by what local educational agency, the identity of each local educational agency having children with disabilities in its care, custody, management, jurisdiction, control, or programs, the number of children with disabilities being served by each local educational agency, and any other information or data that the Board Superintendent requires. The census shall be of children with disabilities between the ages three through 21 but is not required to include children with disabilities that have graduated from high school."

SECTION 80.  G.S. 115C-107.4 reads as rewritten:

"§ 115C-107.4.  Monitoring and enforcement.

(a)        The State Board Superintendent of Public Instruction shall monitor all local educational agencies to determine compliance with this Article and IDEA. The State Board Superintendent also shall monitor the effectiveness of IEPs in meeting the educational needs of children with disabilities.

(b)        The State Board Superintendent shall implement an effective and efficient system of incentives and sanctions for local educational agencies in order to improve results for children with disabilities and meet the requirements of this Article and IDEA. The system, which must be based on a continuum of recognition and sanctions, shall:

(1)        Identify and recognize local educational agencies that achieve or exceed targets and indicators as determined by the State Board, Superintendent, demonstrate significant improvement over time, and show growth on targets and indicators as determined by each local educational agency.

(2)        Provide consequences for local educational agencies that are substantially noncompliant with statutory and regulatory requirements under this Article and IDEA.

(c)        The system of incentives developed under subsection (b) of this section may include commendations, public recognition, allocation of grant funds if available, and any other incentives as considered appropriate by the State Board. Superintendent.

(d)        The system of sanctions developed under subsection (b) of this section shall include the following:

(1)        Level One - Needs Assistance: When the State Board Superintendent determines (i) a local school educational agency has been in noncompliance for two years and (ii) that agency needs assistance in implementing the requirements of this Article and IDEA, the State Board Superintendent shall take one or more of the following actions:

a.         The Board Superintendent may direct the local educational agency to allocate additional time and resources for technical assistance and guidance related to areas of noncompliance.

b.         The Board Superintendent may impose special conditions on that agency's application for IDEA funds and receipt of State funds.

c.         The Board Superintendent may direct how that local educational agency utilizes IDEA and State funds to address the remaining findings of noncompliance. The local educational agency must track the use of these funds to show how the funds are targeted to address areas of noncompliance.

(2)        Level Two - Needs Intervention: If the State Board Superintendent determines (i) that the local educational agency has been in noncompliance for three years and (ii) that agency needs assistance in implementing this Article and IDEA, the following apply:

a.         The Board Superintendent may take any of the actions described in subdivision (1) of this subsection.

b.         The Board Superintendent shall withhold, in whole or in part, any further payments of IDEA and State funds to the agency.

c.         The Board Superintendent shall require the agency to enter into a compliance agreement.

(3)        Level Three - Needs Substantial Intervention: In addition to the sanctions described in subdivisions (1) and (2) of this subsection, if at any time the State Board Superintendent determines a local educational agency (i) needs substantial intervention in implementing the requirements of this Article and IDEA, or (ii) has established a substantial failure to comply with this Article and IDEA, the Board Superintendent shall take one or more of the following actions:

a.         The Board Superintendent shall direct the agency to implement a compliance agreement, billed to that agency.

b.         The Board Superintendent shall recover IDEA and State funds.

c.         The Board Superintendent shall refer the agency for appropriate enforcement under State or federal law.

(e)        In addition to the consequences required under subsections (b) and (d) of this section, the State Board Superintendent shall develop sanctions for local educational agencies that fail to implement a corrective action or hearing decision."

SECTION 81.  G.S. 115C-107.5 reads as rewritten:

"§ 115C-107.5.  Annual reports.

The State Board Superintendent of Public Instruction shall report annually to the Joint Legislative Education Oversight Committee on the implementation of this Article and the educational performance of children with disabilities. Each annual report shall include a copy of the following documents that were submitted, received, or made public during the year: (i) the most recent State performance plan and any amendments to that plan submitted to the Secretary of Education, (ii) compliance and monitoring reports submitted to the Secretary of Education, (iii) the annual report submitted to the Secretary of Education on the performance of the State under its performance plan, and (iv) any other information required under IDEA to be made available to the public. In addition, the annual report shall include an analysis of the educational performance of children with disabilities in the State and a summary of disputes under Part 1D of this Chapter. The report shall be filed no later than October 15 each year and may be filed electronically."

SECTION 82.  G.S. 115C-107.6 reads as rewritten:

"§ 115C-107.6.  Duties of local educational agencies.

(a)        Each local educational agency, in providing for the education of children with disabilities within its jurisdiction, must comply with IDEA and the rules adopted by the State Board Superintendent of Public Instruction under this Article. In addition, each local educational agency shall have in effect policies, procedures, and programs that are consistent with this Article, IDEA, and rules adopted by the State Board. Superintendent.

(b)        No child with disabilities shall be prevented from attending the public schools of the local educational agency in which the child resides or from which the child receives services or from attending any other public program of free appropriate public education based solely on the fact that the child has a disability. If it appears the child should receive a program of free appropriate public education in a program operated by or under the supervision of the Department of Health and Human Services or the Department of Juvenile Justice and Delinquency Prevention, the local school administrative unit shall confer with the appropriate Department of Health and Human Services or Department of Juvenile Justice and Delinquency Prevention staff for their participation and determination of the appropriateness of placement in that program and development of the child's individualized education program.

(c)        No matriculation or tuition fees or other fees or charges shall be required or asked of children with disabilities or their parents except those fees or charges that are required uniformly of all public school pupils. The provision of a free appropriate public education within the facilities of the Department of Health and Human Services and the Department of Juvenile Justice and Delinquency Prevention may not prevent that Department from charging for other services or treatment.

(d)        Each child with a disability shall be educated in accordance with that child's IEP and in the least restrictive environment for that child.

(e)        Each local educational agency may use the forms developed under G.S. 115C-107.2(d)."

SECTION 83.  G.S. 115C-108.1 reads as rewritten:

"§ 115C-108.1.  State Board Department of Public Instruction lead agency.

(a)        The Board Superintendent of Public Instruction shall cause all local educational agencies to provide special education and related services to children with disabilities in their care, custody, management, jurisdiction, control, or programs.

(b)        The jurisdiction of the Board Superintendent with respect to the design and content of special education programs or related services for children with disabilities extends to and over the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction.

(c)        All provisions of this Article that are specifically applicable to local school administrative units also are applicable to the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction, and their divisions and agencies; all duties, responsibilities, rights, and privileges specifically imposed on or granted to local school administrative units by this Article also are imposed on or granted to the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction, and their divisions and agencies. However, with respect to children with disabilities who are residents or patients of any State-operated or State-supported residential treatment facility, including a school for the deaf, school for the blind, mental hospital or center, mental retardation center, or in a facility operated by the Department of Juvenile Justice and Delinquency Prevention, the Department of Correction, or any of their divisions and agencies, the Board Superintendent of Public Instruction may contract with the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction for the provision of special education and related services and the power to review, revise, and approve any plans for special education and related services to those residents.

(d)        The Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention shall submit to the Board Superintendent of Public Instruction their plans for the education of children with disabilities in their care, custody, or control. The Board Superintendent may grant specific exemptions for programs administered by the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, or the Department of Correction when compliance by them with the Board's Superintendent's standards would, in the Board's Superintendent's judgment, impose undue hardship on that department and when other procedural due process requirements, substantially equivalent to those required under this Article and IDEA, are assured in programs of special education and related services furnished to children with disabilities served by that department. Further, the Board Superintendent shall recognize that inpatient and residential special education programs within the Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention may require more program resources than those necessary for optimal operation of these programs in local school administrative units.

(e)        The Board Superintendent of Public Instruction shall support and encourage joint and collaborative special education planning and programming at local levels to include local school administrative units and the programs and agencies of the Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention."

SECTION 84.  G.S. 115C-108.2 reads as rewritten:

"§ 115C-108.2.  Interlocal cooperation.

The Board, Department of Public Instruction, any two or more local educational agencies, and any other agency and any State department, agency, or division having responsibility for the education, treatment, or habilitation of children with disabilities may enter into interlocal cooperative undertakings under Part 1 of Article 20 of Chapter 160A of the General Statutes or into undertakings with a State agency such as the Departments of Public Instruction, Health and Human Services, Juvenile Justice and Delinquency Prevention, or Correction, or their divisions, agencies, or units, for the purpose of providing for the special education and related services, treatment, or habilitation of these children within the jurisdiction of the agency or unit, and shall do so when it is unable to provide the appropriate public special education or related services for these children. In entering into such undertakings, the local agency and State department, agency, or division shall also contract to provide the special education or related services that are educationally appropriate to the children with disabilities for whose benefit the undertaking is made and provide these services by or in the local agency unit or State department, agency, or division located in the place most convenient to these children."

SECTION 85.  G.S. 115C-109.1 reads as rewritten:

"§ 115C-109.1.  Handbook for parents.

The State Board of Education Superintendent of Public Instruction shall make available to parents a handbook of procedural safeguards. This handbook for parents shall be made available at least once each school year, except that a copy also shall be given to the parent (i) upon the initial referral or parental request for an evaluation; (ii) upon the first occurrence of the filing of a petition under G.S. 115C-109.6 and IDEA; (iii) upon the parent's request; and (iv) upon any revision to the content of the handbook. This handbook for parents shall include a full explanation of the procedural safeguards under this Article and IDEA, be written in the native language of the parent unless it clearly is not feasible to do so, be written in an easily understood manner, and include information required under IDEA to be included.

The State Board Superintendent shall place a current copy of the handbook for parents on its the Superintendent's Internet Web site."

SECTION 86.  G.S. 115C-109.2(b) reads as rewritten:

"(b)      Notwithstanding subsection (a) of this section, for a child with a disability who has reached the age of majority under State law and who has not been determined to be incompetent but is determined to not have the ability to provide informed consent with respect to his or her education program, the State Board Superintendent of Public Instruction shall establish procedures for appointing the parent of the child, or if the parent is not available, another appropriate individual, to represent the educational interests of the child throughout the period of eligibility under this section."

SECTION 87.  G.S. 115C-109.4 reads as rewritten:

"§ 115C-109.4.  Mediation.

…

(c)        The State Board Superintendent of Public Instruction may establish procedures to offer to parties that do not choose to use the mediation process an opportunity to meet with a disinterested party, as provided under IDEA, who can encourage the use and explain the benefits of the mediation process to the parties. This meeting must be at a time and location convenient to the parents.

(d)        The State Board Superintendent shall maintain a list of qualified mediators who are knowledgeable in laws and regulations relating to the provision of special education and related services. When mediation is requested, the Exceptional Children Division of the Department of Public Instruction shall assign a mediator from this list of mediators.

…."

SECTION 88.  G.S. 115C-109.6 reads as rewritten:

"§ 115C-109.6.  Impartial due process hearings.

…

(h)        In addition to the petition, the parties shall simultaneously serve a copy of all pleadings, agreements, and motions under this Part with the person designated by the State Board Superintendent of Public Instruction under G.S. 115C-107.2(b)(9). The Office of Administrative Hearings shall simultaneously serve a copy of all orders and decisions under this Part with the person designated by the State Board Superintendent under G.S. 115C-107.2(b)(9).

(i)         Nothing in this section shall be construed to preclude a parent from filing a separate due process petition on an issue separate from a petition already filed.

(j)         The State Board, Superintendent, through the Exceptional Children Division, and the State Office of Administrative Hearings shall develop and enter into a binding memorandum of understanding to ensure compliance with the statutory and regulatory procedures and timelines applicable under IDEA to due process hearings and to hearing officers' decisions, and to ensure the parties' due process rights to a fair and impartial hearing. This memorandum of understanding shall be amended if subsequent changes to IDEA are made. The procedures and timelines shall be made part of the Board's Superintendent's procedural safeguards that are made available to parents and the public under G.S. 115C-109.1 and G.S. 115C-109.5."

SECTION 89.  G.S. 115C-109.7 reads as rewritten:

"§ 115C-109.7.  Resolution session.

…

(d)        If a resolution is reached to resolve the dispute at a meeting under subsection (a) of this section, the parties shall execute a legally binding agreement that is:

…

(3)        Filed with the person designated by the State Board Superintendent of Public Instruction to receive notices and with the Office of Administrative Hearings.

(e)        If the parties execute an agreement under subsection (d) of this section, either party may void the agreement by providing written notice within three business days of the agreement's execution to the person designated by the State Board Superintendent to receive notices, the Office of Administrative Hearings, and the other party. Notwithstanding subsection (c) of this section, upon receipt of this notice, the impartial hearing under G.S. 115C-109.6 may occur and all of the applicable timelines for that hearing shall commence."

SECTION 90.  G.S. 115C-109.9 reads as rewritten:

"§ 115C-109.9.  Review by review officer; appeals.

(a)        Any party aggrieved by the findings and decision of a hearing officer under G.S. 115C-109.6 or G.S. 115C-109.8 may appeal the findings and decision within 30 days after receipt of notice of the decision by filing a written notice of appeal with the person designated by the State Board Superintendent of Public Instruction under G.S. 107.2(b)(9) to receive notices. The State Board, Superintendent, through the Exceptional Children Division, shall appoint a Review Officer from a pool of review officers approved by the State Board of Education. Superintendent. The Review Officer shall conduct an impartial review of the findings and decision appealed under this section. The Review Officer conducting this review shall make an independent decision upon completion of the review. The decision of the Review Officer becomes final unless an aggrieved party brings a civil action under subsection (d) of this section. A copy of the decision shall be served upon each party, and a copy shall be furnished to the attorneys of record and the Office of Administrative Hearings. The written notice shall contain a statement informing the parties of the right to file a civil action and the 30-day limitation period for filing a civil action under subsection (d) of this section.

(b)        A Review Officer shall be an educator or other professional who is knowledgeable about special education and who possesses other qualifications as may be established by the State Board of Education. Superintendent of Public Instruction. No person may be appointed as a Review Officer if that person is an employee of the State Board of Education, the Department of Public Instruction,Instruction  or the local educational agency that has been involved in the education or care of the child whose parents have filed the petition.

(c)        The State Board Superintendent of Public Instruction may enforce the final decision of the administrative law judge under G.S. 115C-109.6, if not appealed under this section, or the final decision of the Review Officer, by ordering a local educational agency:

(1)        To provide a child with appropriate education;

(2)        To place a child in a private school that is approved to provide special education and that can provide the child an appropriate education; or

(3)        To reimburse parents for reasonable private school placement costs in accordance with this Article and IDEA when it is determined that the local educational agency did not offer or provide the child with appropriate education and the private school in which the parent placed the child was an approved school and did provide the child an appropriate education.

…."

SECTION 91.  G.S. 115C-110.1 reads as rewritten:

"§ 115C-110.1.  Teacher qualifications.

The Board Superintendent of Public Instruction shall adopt rules covering the qualifications of and standards for licensure of teachers, teacher assistants, speech-language pathologists, school psychologists, and others involved in the education and training of children with disabilities."

SECTION 92.  G.S. 115C-111.1 reads as rewritten:

"§ 115C-111.1.  Out-of-state students; eligibility for State funds.

Notwithstanding any policy or rule adopted by the State Board of Education, Superintendent of Public Instruction, if a local school administrative unit provides services to a student under a current IEP from another state while a determination is being made regarding the student's eligibility for services as a child with disabilities in North Carolina, the local school administrative unit is entitled to receive State funding to serve the student while the determination is being made. If the student is later determined not to qualify for services in North Carolina, the local school administrative unit is not required to repay State funds received while the determination is being made."

SECTION 93.  G.S. 115C-111.3 reads as rewritten:

"§ 115C-111.3.  Cost of education of children in group homes, foster homes, etc.

…

(b)        The State Board of Education Superintendent of Public Instruction shall use State and federal funds appropriated for children with disabilities to establish a reserve fund to reimburse local boards of education for the education costs of children assigned to group homes or other facilities as provided in subsection (a) of this section. Local school administrative units may submit a Special State Reserve Program application for foster home or group home children whose special education and related services costs exceed the per child group home allocation.

…."

SECTION 94.  G.S. 115C-111.5 reads as rewritten:

"§ 115C-111.5.  Allocation of federal funds.

Whenever any federal monies for the special education and related services for children with disabilities are made available, these funds shall be allocated according to a formula designed by the Board Superintendent of Public Instruction consistent with federal laws and regulations. This formula shall ensure equitable distribution of resources and shall be implemented as funds are made available from federal and State appropriations."

SECTION 96.  G.S. 115C-112.1 reads as rewritten:

"§ 115C-112.1.  Establishment; organization; powers and duties.

(a)        There is hereby established an Advisory Council to the State Board of Education Superintendent of Public Instruction to be called the Council on Educational Services for Exceptional Children.

(b)        The Council shall consist of a minimum of 24 members to be appointed as follows: four ex officio members; one individual with a disability and one representative of a private school appointed by the Governor; one member of the Senate and one parent of a child with a disability between the ages of birth and 26 appointed by the President Pro Tempore of the Senate; one member of the House of Representatives and one parent of a child with a disability appointed by the Speaker of the House of Representatives; and 14 members appointed by the State Board of Education. Superintendent of Public Instruction. The State Board Superintendent shall appoint members who represent individuals with disabilities, teachers, local school administrative units, institutions of higher education that prepare special education and related services personnel, administrators of programs for children with disabilities, charter schools, parents of children with disabilities, a State or local official who carries out activities under the federal McKinney-Vento Homeless Assistance Act, vocational, community, or business organizations concerned with the provision of transition services, and others as required by IDEA. The majority of members on the Council shall be individuals with disabilities or parents of children with disabilities. The Council shall designate a chairperson from among its members. The designation of the chairperson is subject to the approval of the State Board of Education. Superintendent. The Board Superintendent shall adopt rules to carry out this subsection.

Ex officio members of the Council shall be the following:

(1)        The Secretary of Health and Human Services or the Secretary's designee.

(2)        The Secretary of Juvenile Justice and Delinquency Prevention or the Secretary's designee.

(3)        The Secretary of Correction or the Secretary's designee.

(4)        The Superintendent of Public Instruction or the Superintendent's designee.

The term of appointment for all members except those appointed by the State Board of Education Superintendent is two years. The term for members appointed by the Superintendent State Board of Education is four years. No person shall serve more than two consecutive four-year terms.

Each Council member shall serve without pay, but shall receive travel allowances and per diem in the same amount provided for members of the North Carolina General Assembly.

(c)        The Council shall meet in offices provided by the Department of Public Instruction on a date to be agreed upon by the members of the Council from meeting to meeting. The Council shall meet no less than once every three months. The Department of Public Instruction shall provide the necessary secretarial and clerical staff and supplies to accomplish the objectives of the Council.

(d)        The Council shall:

(1)        Advise the Board Superintendent of Public Instruction with respect to unmet needs within the State in the education of children with disabilities.

(2)        Comment publicly on rules, policies, and procedures proposed by the Board Superintendent regarding the education of children with disabilities.

(3)        Assist the Board Superintendent in developing evaluations and reporting on data to the Secretary of Education under the federal Individuals with Disabilities Education Act (IDEA), as amended.

(4)        Advise the State Board Superintendent in developing corrective action plans to address findings identified in federal monitoring reports required under the federal Individuals with Disabilities Education Act (IDEA), as amended.

(5)        Advise the State Board Superintendent in developing and implementing policies relating to the coordination of services for children with disabilities.

(6)        Carry out any other responsibility as designated by federal law or the State Board. Superintendent."

SECTION 97.  G.S. 115C-150 reads as rewritten:

"§ 115C-150.  State Board Superintendent of Public Instruction to adopt rules.

The State Board of Education Superintendent of Public Instruction shall adopt rules to ensure that local school administrative units provide an appropriate education for drug and alcohol addicted children."

SECTION 98.  G.S. 115C-150.6 reads as rewritten:

"§ 115C-150.6.  State Board of Education Superintendent of Public Instruction's responsibilities.

In order to implement this Article, the State Board of Education Superintendent of Public Instruction shall:

(1)        Develop and disseminate guidelines for developing local plans under G.S. 115C-150.7(a). These guidelines should address identification procedures, differentiated curriculum, integrated services, staff development, program evaluation methods, and any other information the State Board Superintendent considers necessary or appropriate.

(2)        Provide ongoing technical assistance to the local school administrative units in the development, implementation, and evaluation of their local plans under G.S. 115C-150.7."

SECTION 99.  G.S. 115C-150.7 reads as rewritten:

"§ 115C-150.7.  Local plans.

…

(c)        Upon its approval of the plan developed under this section, the local board shall submit the plan to the State Board of Education Superintendent of Public Instruction for its review and comments. The local board shall consider the comments it receives from the State Board Superintendent before it implements the plan.

(d)        A plan shall remain in effect for no more than three years; however, the local board may amend the plan as often as it considers necessary or appropriate. Any changes to a plan shall be submitted to the State Board of Education Superintendent of Public Instruction for its review and comments. The local board shall consider the State Board's Superintendent's comments before it implements the changes."

SECTION 100.  G.S. 115C-151 reads as rewritten:

"§ 115C-151.  Statement of purpose.

It is the intent of the General Assembly that vocational and technical education be an integral part of the educational process. The State Board of Education Superintendent of Public Instruction shall administer through local boards of education a comprehensive program of vocational and technical education that shall be available to all students, with priority given to students in grades eight through 12, who desire it in the public secondary schools and middle schools of this State. The purposes of vocational and technical education in North Carolina public secondary schools shall be:

(1)        Occupational Skill Development. - To prepare individuals for paid or unpaid employment in recognized occupations, new occupations, and emerging occupations.

(2)        Preparation for Advanced Education. - To prepare individuals for participation in advanced or highly skilled vocational and technical education.

(3)        Career Development; Introductory. - To assist individuals in the making of informed and meaningful occupational choices.

It is also legislative intent to authorize the State Board of Education Superintendent of Public Instruction to support appropriate vocational and technical education instruction and related services for individuals who have special vocational and technical education needs which can be fulfilled through a comprehensive vocational and technical education program as designated by the Superintendent's State Board of Education policy or federal vocational and technical education legislation."

SECTION 101.  G.S. 115C-152 reads as rewritten:

"§ 115C-152.  Definitions.

The State Board of Education Superintendent of Public Instruction shall provide appropriate definitions to vocational and technical education programs, services, and activities in grades 6-12 not otherwise included in this Part. As used in this Part, unless the context requires otherwise:

(1)        "Career development; introductory" means an instructional program, service, or activity designed to familiarize individuals with the broad range of occupations for which special skills are required and the requisites for careers in such occupations.

(2)        "Comprehensive vocational and technical education" means instructional programs, services, or activities directly related to preparation for and placement in employment, for advanced technical preparation, or for the making of informed and meaningful educational and occupational choices.

(3)        "Occupational skill development" means a program, service, or activity designed to prepare individuals for paid or unpaid employment as semiskilled or skilled workers, technicians, or professional-support personnel in recognized occupations and in new and emerging occupations including occupations or a trade, technical, business, health, office, homemaking, homemaking-related, agricultural, marketing, and other nature. Instruction is designed to fit individuals for initial employment in a specific occupation or a cluster of closely related occupations in an occupational field. This instruction includes education in technology, manipulative skills, theory, auxiliary information, application of academic skills, and other associated knowledges.

(4)        "Preparation for advanced education" means a program, service, or activity designed to prepare individuals for participation in advanced or highly skilled post-secondary and technical education programs leading to employment in specific occupations or a cluster of closely related occupations and for participation in vocational and technical education teacher education programs."

SECTION 102.  G.S. 115C-153 reads as rewritten:

"§ 115C-153.  Administration of vocational and technical education.

The State Board of Education Superintendent of Public Instruction shall be the sole State agency for the State administration of vocational and technical education at all levels, shall be designated as the State Board Superintendent of Vocational and Technical Education, and shall have all necessary authority to cooperate with any and all federal agencies in the administration of national acts assisting vocational and technical education, to administer any legislation pursuant thereto enacted by the General Assembly of North Carolina, and to cooperate with local boards of education in providing vocational and technical education programs, services, and activities for youth and adults residing in the areas under their jurisdiction."

SECTION 103.  G.S. 115C-154 reads as rewritten:

"§ 115C-154.  Duties of the State Board of Education. Superintendent of Public Instruction.

In carrying out its his or her duties, the State Board of Education Superintendent of Public Instruction shall develop and implement any policies, rules, regulations, and procedures as necessary to ensure vocational and technical education programs of high quality. The State Board of Education Superintendent shall prepare a Master Plan for Vocational and Technical Education. The plan, to be updated periodically, shall ensure minimally that:

(1)        Articulation shall occur with institutions, agencies, councils, and other organizations having responsibilities for work force preparedness.

(2)        Business, industrial, agricultural, and lay representatives, including parents of students enrolled in Vocational and Technical Education courses, organized as advisory committees have been utilized in the development of decisions affecting vocational and technical education programs and services.

(3)        Public hearings are conducted annually to afford the public an opportunity to express their views concerning the State Board's Superintendent's plan and to suggest changes in the plan.

(4)        The plan describes the State's policy for vocational and technical education and the system utilized for the delivery of vocational and technical education programs, services, and activities. The policy shall include priorities of curriculum, integration of vocational and academic education, technical preparation, and youth apprenticeships.

(5)        A professionally and occupationally qualified staff is employed and organized in a manner to assure efficient and effective State leadership for vocational and technical education. Provisions shall be made for such functions as: planning, administration, supervision, personnel development, curriculum development, vocational student organization and coordination research and evaluation, and such others as the State Board Superintendent may direct.

(6)        An appropriate supply of qualified personnel is trained for program expansion and replacements through cooperative arrangements with institutions of higher education and other institutions or agencies, including where necessary financial support of programs and curriculums designed for the preparation of vocational administrators, supervisors, coordinators, instructors, and support personnel.

(7)        Minimum standards shall be prescribed for personnel employed at the State and local levels.

(8)        Local boards of education submit to the State Board of Education Superintendent of Public Instruction a local plan for vocational and technical education that has been prepared in accordance with the procedures set forth in the Master Plan for Vocational and Technical Education.

(9)        Appropriate minimum standards for vocational and technical education programs, services, and activities shall be established, promulgated, supervised, monitored, and maintained. These standards shall specify characteristics such as program objectives, competencies, course sequence, program duration, class size, supervised on-the-job experiences, vocational student organization, school-to-work transition programs, qualifications of instructors, and all other standards necessary to ensure that all programs conducted by local school administrative units shall be of high quality, relevant to student needs, and coordinated with employment opportunities.

(10)      A system of continuing qualitative and quantitative evaluation of all vocational and technical education programs, services, and activities supported under the provisions of this Part shall be established, maintained, and utilized periodically. One component of the system shall be follow-up studies of employees and former students of vocational and technical education programs who have been out of school for one year, and for five years to ascertain the effectiveness of instruction, services, and activities."

SECTION 104.  G.S. 115C-154.1 reads as rewritten:

"§ 115C-154.1.  Approval of local vocational and technical education plans or applications.

The State Board of Education Superintendent of Public Instruction shall not approve any local vocational and technical education plans or applications unless:

(1)        The programs are in accordance with the purposes of G.S. 115C-151;

(2)        The vocational programs and courses are not duplicated within a local school administrative unit, unless the unit has data to justify the duplication or the unit has a plan to redirect the duplicative programs within three years;

(3)        For all current job skill programs, there is a documented need, based on labor market data or follow-up data, or there is a plan to redirect the program within two years;

(4)        New vocational programs show documented need based on student demand, or for new job skill programs, based on student and labor market demand; and

(5)        All programs are responsive to technological advances, changing characteristics of the work force, and the academic, technical, and attitudinal development of students.

Local programs using the cooperative vocational and technical education method shall be approved subject to students enrolled being placed in employment commensurate with the respective program criteria."

SECTION 105.  G.S. 115C-154.2 reads as rewritten:

"§ 115C-154.2.  Vocational and technical education equipment standards.

The State Board of Education Superintendent of Public Instruction shall develop equipment standards for each vocational and technical education program level and shall assist local school administrative units in determining the adequacy of equipment for each vocational and technical education program available in each local school administrative unit.

The State Board Superintendent shall also develop a plan to assure that minimum equipment standards for each program are met to the extent that State, local, and federal funds are available for that purpose. The State Board Superintendent shall consider all reasonable and prudent means to meet these minimum equipment standards and to ensure a balanced vocational and technical education program for students in the public schools."

SECTION 106.  G.S. 115C-155 reads as rewritten:

"§ 115C-155.  Acceptance of benefits of federal vocational acts.

The State of North Carolina, through the State Board of Education, Superintendent of Public Instruction, may accept all the provisions and benefits of acts passed by the Congress of the United States providing federal funds for vocational and technical education programs: Provided, however, that the State Board of Education Superintendent shall not accept those funds upon any condition that the public schools of this State shall be operated contrary to any provision of the Constitution or statutes of this State."

SECTION 107.  G.S. 115C-156 reads as rewritten:

"§ 115C-156.  State funds for vocational and technical education.

It is the intent of the General Assembly of North Carolina to appropriate funds for each fiscal year to support the purposes of vocational and technical education as set forth in G.S. 115C-151. From funds appropriated, the State Board of Education Superintendent of Public Instruction shall establish a sum of money for State administration of vocational and technical education and shall allocate the remaining sum on an equitable basis to local school administrative units, except that a contingency fund is established to correct excess deviations that may occur during the regular school year. In the administration of State funds, the State Board of Education Superintendent shall adopt such policies and procedures as necessary to ensure that the funds appropriated are used for the purpose stated in this Part and consistent with the policy set forth in the Master Plan for Vocational Education."

SECTION 108.  G.S. 115C-157 reads as rewritten:

"§ 115C-157.  Responsibility of local boards of education.

Each local school administrative unit, shall provide free appropriate vocational and technical education instruction, activities, and services in accordance with the provisions of this Part for all youth, with priority given to youth in grades eight through 12, who elect the instruction and shall have responsibility for administering the instruction, activities, and services in accordance with federal and State law and State Board of Education the Superintendent of Public Instruction's policies."

SECTION 109.  G.S. 115C-158 reads as rewritten:

"§ 115C-158.  Federal funds division.

The division between secondary and post-secondary educational systems and institutions of federal funds for which the State Board Superintendent of Vocational and Technical Education has responsibility shall, within discretionary limits established by law, require the concurrence of the State Board of Education and Superintendent of Public Instruction and the State Board of Community Colleges on and after January 1, 1981. The portion of the approved State Plan for post-secondary vocational and technical education required by G.S. 115C-154 shall be as approved by the State Board of Community Colleges."

SECTION 110.  G.S. 115C-160 reads as rewritten:

"§ 115C-160.  Definitions.

The State Board of Education Superintendent of Public Instruction shall provide appropriate definitions necessary to this part of vocational and technical education instruction not otherwise included in this Part. As used in this Part, unless the context requires otherwise:

(1)        The term "building trades training" means the development of vocational skills through the construction of dwellings or other buildings and related activities by students in vocational and technical education programs.

(2)        The term "production work" means production activities and services performed by vocational and technical education classes under contract with a second party for remuneration."

SECTION 111.  G.S. 115C-161 reads as rewritten:

"§ 115C-161.  Duties of the State Board of Education. Superintendent of Public Instruction.

The State Board of Education Superintendent of Public Instruction is authorized and directed to establish, maintain, and implement such policies, rules, regulations, and procedures not in conflict with State law or other State Board policies of the Superintendent as necessary to assist local boards of education in the conduct of production work experiences performed in connection with approved State Board of Education vocational and technical education programs.programs approved by the Superintendent."

SECTION 112.  G.S. 115C-164 reads as rewritten:

"§ 115C-164.  Building trades training.

In the establishment and implementation of production work experience policies, the State Board of Education Superintendent of Public Instruction shall be guided as follows:

(1)        Local boards of education may use supplementary tax funds or other local funds available for the support of vocational and technical education to purchase and develop suitable building sites on which dwellings or other buildings are to be constructed by vocational and technical education trade classes of each public school operated by local boards of education. Local boards of education may use these funds for each school to pay the fees necessary in securing and recording deeds to these properties for each public school operated by local boards of education and to purchase all materials needed to complete the construction of buildings by vocational and technical education trade classes and for development of site and property by other vocational and technical education classes. Local boards of education may use these funds to acquire skilled services, including electrical, plumbing, heating, sewer, water, transportation, grading, and landscaping needed in the construction and completion of buildings, that cannot be supplied by the students in vocational and technical education trade classes.

(2)        Local boards of education may, in conjunction with or in lieu of subdivision (1) of this section, contract with recognized building trades educational foundations or associations in the purchase of land for the construction and development of buildings: Provided however, that all contracts shall be in accordance with the requirements set forth by the State Board of Education. Superintendent of Public Instruction."

SECTION 113.  G.S. 115C-174.11 reads as rewritten:

"§ 115C-174.11.  Components of the testing program.

(a)        Assessment Instruments for First and Second Grades. - The State Board of Education Superintendent of Public Instruction shall adopt and provide to the local school administrative units developmentally appropriate individualized assessment instruments consistent with the Basic Education Program for the first and second grades, rather than standardized tests. Local school administrative units may use these assessment instruments provided to them by the State Board Superintendent for first and second grade students, and shall not use standardized tests except as required as a condition of receiving federal grants.

(b)        Repealed by Session Laws 2009-451, s. 7.20(c), effective July 1, 2009.

(c)        Annual Testing Program.

(1)        The State Board of Education Superintendent of Public Instruction shall adopt the tests for grades three through 12 that are required by federal law or as a condition of a federal grant. These tests shall be designed to measure progress toward reading, communication skills, and mathematics for grades three through eight, and toward competencies for grades nine through 12. Students who do not pass the tests adopted for eighth grade shall be provided remedial instruction in the ninth grade.

(2)        If the State Board of Education Superintendent of Public Instruction finds that additional testing in grades three through 12 is desirable to allow comparisons with national indicators of student achievement, that testing shall be conducted with the smallest size sample of students necessary to assure valid comparisons with other states.

(d)        Except as provided in subdivision (2) of subsection (c) of this section, the State Board of Education shall not require the public schools to administer any standardized tests except for those required by federal law or as a condition of a federal grant.

The State Board of Education Superintendent of Public Instruction shall adopt and provide to local school administrative units all tests required by federal law or as a condition of a federal grant."

SECTION 114.  G.S. 115C-174.12 reads as rewritten:

"§ 115C-174.12.  Responsibilities of agencies.

(a)        The State Board of Education Superintendent of Public Instruction shall establish policies and guidelines necessary for minimizing the time students spend taking tests administered through State and local testing programs, for minimizing the frequency of field testing at any one school, and for otherwise carrying out the provisions of this Article. These policies and guidelines shall include the following:

(1)        Schools shall devote no more than two days of instructional time per year to the taking of practice tests that do not have the primary purpose of assessing current student learning;

(2)        Students in a school shall not be subject to field tests or national tests during the two-week period preceding the administration of end-of-grade tests, end-of-course tests, or the school's regularly scheduled final exams; and

(3)        No school shall participate in more than two field tests at any one grade level during a school year unless that school volunteers, through a vote of its school improvement team, to participate in an expanded number of field tests.

These policies shall reflect standard testing practices to insure reliability and validity of the sample testing. The results of the field tests shall be used in the final design of each test. The State Board of Education's Superintendent's policies regarding the testing of children with disabilities shall (i) provide broad accommodations and alternate methods of assessment that are consistent with a child's individualized education program and section 504 (29 U.S.C. § 794) plans, (ii) prohibit the use of statewide tests as the sole determinant of decisions about a child's graduation or promotion, and (iii) provide parents with information about the Statewide Testing Program and options for students with disabilities. The State Board Superintendent shall report its the proposed policies and proposed changes in policies to the Joint Legislative Education Oversight Committee prior to adoption.

The State Board of Education Superintendent may appoint an Advisory Council on Testing to assist in carrying out its responsibilities under this Article.

(b)        The Superintendent of Public Instruction shall be responsible, under policies adopted by the State Board of Education, responsible for the statewide administration of the testing program provided by this Article.

(b1)      The Superintendent shall notify local boards of education by October 1 of each year of any field tests that will be administered in their schools during the school year, the schools at which the field tests will be administered, and the specific field tests that will be administered at each school.

(c)        Local boards of education shall cooperate with the State Board of Education Superintendent of Public Instruction in implementing the provisions of this Article, including the regulations and policies established by the State Board of Education. Superintendent. Local school administrative units shall use the annual tests to fulfill the purposes set out in this Article. Local school administrative units are encouraged to continue to develop local testing programs designed to diagnose student needs."

SECTION 115.  G.S. 115C-206 reads as rewritten:

"§ 115C-206.  State Board of Education; Superintendent of Public Instruction; duties; responsibilities.

The Superintendent of Public Instruction shall prepare and present to the State Board of Education recommendations for general adopt appropriate policies and guidelines for encouraging increased community involvement in the public schools and use of public school facilities. These recommendations shall include, but shall not be limited to provisions for:

(1)        The use of public school facilities by governmental, charitable or civic organizations for activities within the community.

(2)        The utilization of the talents and abilities of volunteers within the community for the enhancement of public school programs including tutoring, counseling and cultural programs and projects.

(3)        Increased communications between the staff and faculty of the public schools, other community institutions and agencies, and citizens in the community.

Based on the recommendations of the Superintendent of Public Instruction, the State Board of Education shall adopt appropriate policies and guidelines for encouraging increased community involvement in the public schools and use of the public school facilities."

SECTION 116.  G.S. 115C-207 reads as rewritten:

"§ 115C-207.  Authority and responsibility of local boards of education.

Every local board of education that uses State funds to implement programs under this Article shall:

(1)        Develop programs and plans for increased community involvement in the public schools based upon policies and guidelines adopted by the State Board of Education. Superintendent of Public Instruction.

(2)        Develop programs and plans for increased community use of public school facilities based upon policies and guidelines adopted by the State Board of Education. Superintendent of Public Instruction.

(3)        Establish rules governing the implementation of such programs and plans in its public schools and submit these rules along with adopted programs and plans to the State Board of Education Superintendent of Public Instruction for approval by the State Board of Education.Superintendent.

Programs and plans developed by a local board of education may provide for the establishment of one or more community schools advisory councils for the public schools under the board's jurisdiction and for the employment of one or more community schools coordinators. The local board of education shall establish the terms and conditions of employment for the community schools coordinators.

Every local board of education using State funds to implement a community schools program under this Article may enter into agreements with other local boards of education, agencies and institutions for the joint development of plans and programs and the joint expenditure of these State funds."

SECTION 117.  G.S. 115C-208 reads as rewritten:

"§ 115C-208.  Community schools advisory councils; duties; responsibilities; membership.

Every local board of education that establishes a community schools program under this Article may establish one or more community schools advisory councils which may become involved in matters affecting the educational process in accordance with rules established by the local board of education and approved by the State Board of Education Superintendent of Public Instruction and further may consider ways of increasing community involvement in the public schools and utilization of public school facilities. Community schools advisory councils may assist local boards of education in the development and preparation of the plans and programs to achieve such goals, may assist in the implementation of such plans and programs and may provide such other assistance as may be requested by the local boards of education.

Community schools advisory councils may work with local school officials and personnel, parent-teacher organizations, and community groups and agencies in providing maximum opportunities for public schools to serve the communities, and may encourage the maximum use of volunteers in the public schools.

At least one half of the members of each community schools advisory council should be the parents of students in the particular public school system: Provided, that less than twenty-five percent (25%) of the pupils attending a particular school reside outside the immediate community of the school, at least one half of the members should be parents of students in the particular school for which the advisory council is established. Wherever possible the local board of education is encouraged to include at least one high school student. The size of the councils and the terms of membership on the councils shall be determined by the local board of education in accordance with the State guidelines."

SECTION 118.  G.S. 115C-210 reads as rewritten:

"§ 115C-210.  Council established.

There is hereby established an advisory council to the State Board of Education Superintendent of Public Instruction to be known as the "State Advisory Council on Indian Education"."

SECTION 119.  G.S. 115C-210.2 reads as rewritten:

"§ 115C-210.2.  Term of office.

The Legislative members, the higher education members, and the member from the North Carolina Commission on Indian Affairs shall serve for an unspecified term at the pleasure of their respective appointing authorities. The public school educators and the Indian parents shall each be divided into two classes, with one class being appointed initially for a term of one year and one class being appointed initially for a term of two years. Assignment of initial appointees to classes shall be by lot conducted by the State Board of Education Superintendent of Public Instruction just prior to the initial appointment. All subsequent terms shall be for a period of two years, and no member shall serve for more than two consecutive full terms."

SECTION 120.  G.S. 115C-210.4 reads as rewritten:

"§ 115C-210.4.  Duties of the Council.

It shall be the duty of the Advisory Council:

(1)        To advise the State Board of Education Superintendent of Public Instruction on ways to meet more effectively the educational needs of Indian students;

(2)        To advocate meaningful programs to reduce and eventually eliminate low achievement and concurrent high attrition rates among American Indian students;

(3)        To prepare an annual report on a fiscal year basis on the status of Indian education, said report to be presented to the State Board of Education Superintendent of Public Instruction and to the various Indian tribal organizations at the statewide Indian Unity Conference;

(4)        To work closely with the Division of Indian Education in the Department of Public Instruction to improve coordination and communication between and among programs;

(5)        To advise the State Board of Education Superintendent of Public Instruction on any other aspect of Indian education when requested by the State Board Superintendent to do so."

SECTION 121.  G.S. 115C-215 reads as rewritten:

"§ 115C-215.  Instruction in driver training and safety education.

There shall be organized and administered under the general supervision of the Superintendent of Public Instruction a program of driver training and safety education in the public schools of this State, said courses to be noncredit courses taught by instructors who meet the requirements established by the State Board of Education. Superintendent. Instructors shall not be required to hold teacher certificates."

SECTION 122.  G.S. 115C-216(a) reads as rewritten:

"(a)       Course of Training and Instruction Required in Public High Schools. - The State Board of Education Superintendent of Public Instruction and local boards of education are required to provide as a part of the program of the public high schools in this State a course of training and instruction in the operation of motor vehicles, in accordance with G.S. 20-88.1."

SECTION 123.  G.S. 115C-231(a) reads as rewritten:

"(a)       When in the judgment of the State Board of Education Superintendent of Public Instruction a program of adult education should be established as a part of the public school system and when appropriations have been made therefor, there shall be organized and administered under the general supervision of the Superintendent Department of Public Instruction, a course in adult education: Provided, that local boards of education, in their discretion, may institute and support such programs from local funds upon the approval of the State Board of Education. Superintendent of Public Instruction."

SECTION 124.  G.S. 115C-233 reads as rewritten:

"§ 115C-233.  Operation of summer schools.

Each local school administrative unit may establish and maintain summer schools. Such summer schools as may be established shall be administered by local boards of education and shall be conducted in accordance with standards developed by the State Board of Education. Superintendent of Public Instruction. The standards so developed shall specify the requirements for approved curriculum, the qualifications of the personnel, the length of the session, and the conditions under which students may be granted credit for courses pursued during a summer school. In determining the eligibility of students for admission to summer schools, boards of education shall be governed by Article 9 of this Chapter, and G.S. 115C-366(b) and 115C-367 to 115C-370. Boards of education of local school administrative units may provide for summer schools from funds made available for that purpose by the State Board of Education, Superintendent, funds appropriated to the local school administrative unit by the tax-levying authority, and from any other revenues available for the purpose."

SECTION 125.  G.S. 115C-238.29B reads as rewritten:

"§ 115C-238.29B.  Eligible applicants; contents of applications; submission of applications for approval.

…

(c)        An applicant shall submit the application to a chartering entity for preliminary approval. A chartering entity may be:

(1)        The local board of education of the local school administrative unit in which the charter school will be located;

(2)        The board of trustees of a constituent institution of The University of North Carolina, so long as the constituent institution is involved in the planning, operation, or evaluation of the charter school; or

(3)        The State Board of Education. Superintendent of Public Instruction.

Regardless of which chartering entity receives the application for preliminary approval, the State Board of Education Superintendent of Public Instruction shall have final approval of the charter school.

Notwithstanding the provisions of this subsection, if the State Board of Education Superintendent finds that an applicant (i) submitted an application to a local board of education and received final approval from the State Board of Education, Superintendent, but (ii) is unable to find a suitable location within that local school administrative unit to operate, the State Board of Education Superintendent may authorize the charter school to operate within an adjacent local school administrative unit for one year only. The charter school cannot operate for more than one year unless it reapplies, in accordance with subdivision (1), (2), or (3) of this subsection, and receives final approval from the State Board of Education. Superintendent.

(d)        Unless an applicant submits its application under subsection (c) of this section to the local board of education of the local school administrative unit in which the charter school will be located, the applicant shall submit a copy of its application to that local board within seven days of its submission under subsection (c) of this section. The local board may offer any information or comment concerning the application it considers appropriate to the chartering entity. The local board shall deliver this information to the chartering entity no later than January 1 of the next calendar year. The applicant shall not be required to obtain or deliver this information to the chartering entity on behalf of the local board. The State Board Superintendent of Public Instruction shall consider any information or comment it receives from a local board and shall consider the impact on the local school administrative unit's ability to provide a sound basic education to its students when determining whether to grant preliminary and final approval of the charter school."

SECTION 126.  G.S. 115C-238.29C reads as rewritten:

"§ 115C-238.29C.  Preliminary approval of applications for charter schools.

(a)        The chartering entity that receives a request for preliminary approval of a charter school shall act on each request received prior to November 1 of a calendar year by February 1 of the next calendar year.

(b)        The chartering entity shall give preliminary approval to the application if the chartering entity determines that (i) information contained in the application meets the requirements set out in this Part or adopted by the State Board of Education, Superintendent of Public Instruction, (ii) the applicant has the ability to operate the school and would be likely to operate the school in an educationally and economically sound manner, and (iii) granting the application would improve student learning and would achieve one of the other purposes set out in G.S. 115C-238.29A. In reviewing applications for the establishment of charter schools within a local school administrative unit, the chartering entity is encouraged to give preference to applications that demonstrate the capability to provide comprehensive learning experiences to students identified by the applicants as at risk of academic failure. If the chartering entity approves more than one application for charter schools located in a local school administrative unit, the chartering entity may state its order of preference among the applications that it approves.

(c)        If a chartering entity other than the State Board Superintendent of Public Instruction disapproves an application, the applicant may appeal to the State Board of Education Superintendent prior to February 15. The State Board Superintendent shall consider the appeal at the same time it is considering final approval in accordance with G.S. 115C-238.29D. The State Board Superintendent shall give preliminary approval of the application if it finds that the chartering entity acted in an arbitrary or capricious manner in disapproving the application, failed to consider appropriately the application, or failed to act within the time set out in G.S. 115C-238.29C.

If the chartering entity, the State Board of Education, Superintendent,  or both, disapprove an application, the applicant may modify the application and reapply subject to the application deadline contained in subsection (a) of this section."

SECTION 127.  G.S. 115C-238.29D reads as rewritten:

"§ 115C-238.29D.  Final approval of applications for charter schools.

(a)        The State Board Superintendent of Public Instruction shall grant final approval of an application if it finds that the application meets the requirements set out in this Part or adopted by the State Board of Education Superintendent and that granting the application would achieve one or more of the purposes set out in G.S. 115C-238.29A. The State Board Superintendent shall act by March 15 of a calendar year on all applications and appeals it receives prior to February 15 of that calendar year.

(b)        The State Board Superintendent of Public Instruction shall authorize no more than five charter schools per year in one local school administrative unit. The State Board Superintendent shall authorize no more than 100 charter schools statewide. If more than five charter schools in one local school administrative unit or more than 100 schools statewide meet the standards for final approval, the State Board Superintendent shall give priority to applications that are most likely to further State education policies and to strengthen the educational program offered in the local school administrative units in which they are located.

(c)        The State Board of Education Superintendent of Public Instruction may authorize a school before the applicant has secured its space, equipment, facilities, and personnel if the applicant indicates the authority is necessary for it to raise working capital. The State Board Superintendent shall not allocate any funds to the school until the school has obtained space.

(d)        The State Board of Education Superintendent of Public Instruction may grant the initial charter for a period not to exceed 10 years and may renew the charter upon the request of the chartering entity for subsequent periods not to exceed 10 years each. The State Board of Education Superintendent shall review the operations of each charter school at least once every five years to ensure that the school is meeting the expected academic, financial, and governance standards.

A material revision of the provisions of a charter application shall be made only upon the approval of the State Board of Education. Superintendent.

It shall not be considered a material revision of a charter application and shall not require the prior approval of the State Board Superintendent for a charter school to increase its enrollment during the charter school's second year of operation and annually thereafter (i) by up to ten percent (10%) of the school's previous year's enrollment or (ii) in accordance with planned growth as authorized in the charter. Other enrollment growth shall be considered a material revision of the charter application, and the State Board Superintendent may approve such additional enrollment growth of greater than ten percent (10%) only if the State Board Superintendent finds that:

(1)        The actual enrollment of the charter school is within ten percent (10%) of its maximum authorized enrollment;

(2)        The charter school has commitments for ninety percent (90%) of the requested maximum growth;

(3)        The board of education of the local school administrative unit in which the charter school is located has had an opportunity to be heard by the State Board of Education Superintendent of Public Instruction on any adverse impact the proposed growth would have on the unit's ability to provide a sound basic education to its students;

(4)        The charter school is not currently identified as low-performing;

(5)        The charter school meets generally accepted standards of fiscal management; and

(6)        It is otherwise appropriate to approve the enrollment growth."

SECTION 128.  G.S. 115C-238.29E reads as rewritten:

"§ 115C-238.29E.  Charter school operation.

(a)        A charter school that is approved by the State shall be a public school within the local school administrative unit in which it is located. It shall be accountable to the local board of education if it applied for and received preliminary approval from that local board for purposes of ensuring compliance with applicable laws and the provisions of its charter. All other charter schools shall be accountable to the State Board Superintendent of Public Instruction for ensuring compliance with applicable laws and the provisions of their charters, except that any of these charter schools may agree to be accountable to the local board of the school administrative unit in which the charter school is located rather than to the State Board.Superintendent.

(b)        A charter school shall be operated by a private nonprofit corporation that shall have received federal tax-exempt status no later than 24 months following final approval of the application.

(c)        A charter school shall operate under the written charter signed by the entity to which it is accountable under subsection (a) of this section and the applicant. A charter school is not required to enter into any other contract. The charter shall incorporate the information provided in the application, as modified during the charter approval process, and any terms and conditions imposed on the charter school by the State Board of Education. Superintendent of Public Instruction. No other terms may be imposed on the charter school as a condition for receipt of local funds.

…."

SECTION 129.  G.S. 115C-238.29F reads as rewritten:

"§ 115C-238.29F.  General requirements.

(a)        Health and Safety Standards. - A charter school shall meet the same health and safety requirements required of a local school administrative unit. The Department of Public Instruction shall ensure that charter schools provide parents and guardians with information about meningococcal meningitis and influenza and their vaccines at the beginning of every school year. This information shall include the causes, symptoms, and how meningococcal meningitis and influenza are spread and the places where parents and guardians may obtain additional information and vaccinations for their children.

The Department of Public Instruction shall also ensure that charter schools provide parents and guardians with information about cervical cancer, cervical dysplasia, human papillomavirus, and the vaccines available to prevent these diseases. This information shall be provided at the beginning of the school year to parents of children entering grades five though [through] 12. This information shall include the causes and symptoms of these diseases, how they are transmitted, how they may be prevented by vaccination, including the benefits and possible side effects of vaccination, and the places where parents and guardians may obtain additional information and vaccinations for their children.

The Department of Public Instruction shall also ensure that charter schools provide students in grades nine through 12 with information annually on the manner in which a parent may lawfully abandon a newborn baby with a responsible person, in accordance with G.S. 7B-500.

The Department of Public Instruction shall also ensure that the guidelines for individual diabetes care plans adopted by the State Board of Education Superintendent of Public Instruction under G.S. 115C-12(31) are implemented in charter schools in which students with diabetes are enrolled and that charter schools otherwise comply with the provisions of G.S. 115C-375.3.

…

(c)        Civil Liability and Insurance. -

(1)        The board of directors of a charter school may sue and be sued. The State Board of Education Superintendent of Public Instruction shall adopt rules to establish reasonable amounts and types of liability insurance that the board of directors shall be required by the charter to obtain. The board of directors shall obtain at least the amount of and types of insurance required by these rules to be included in the charter. Any sovereign immunity of the charter school, of the organization that operates the charter school, or its members, officers, or directors, or of the employees of the charter school or the organization that operates the charter school, is waived to the extent of indemnification by insurance.

(2)        No civil liability shall attach to any chartering entity, to the State Board of Education, Superintendent of Public Instruction, or to any of their members or employees, individually or collectively, for any acts or omissions of the charter school.

(d)        Instructional Program. -

(1)        (See note) The school shall provide instruction each year for at least 180 days.

(2)        The school shall design its programs to at least meet the student performance standards adopted by the State Board of Education Superintendent of Public Instruction and the student performance standards contained in the charter.

(3)        A charter school shall conduct the student assessments required for charter schools by the State Board of Education. Superintendent of Public Instruction.

(4)        The school shall comply with policies adopted by the State Board of Education Superintendent of Public Instruction for charter schools relating to the education of children with disabilities.

(5)        The school is subject to and shall comply with Article 27 of Chapter 115C of the General Statutes, except that a charter school may also exclude a student from the charter school and return that student to another school in the local school administrative unit in accordance with the terms of its charter.

(e)        Employees. -

…

(4)        The employees of the charter school shall be deemed employees of the local school administrative unit for purposes of providing certain State-funded employee benefits, including membership in the Teachers' and State Employees' Retirement System and the State Health Plan for Teachers and State Employees. The State Board of Education Superintendent of Public Instruction provides funds to charter schools, approves the original members of the boards of directors of the charter schools, has the authority to grant, supervise, and revoke charters, and demands full accountability from charter schools for school finances and student performance. Accordingly, it is the determination of the General Assembly that charter schools are public schools and that the employees of charter schools are public school employees. Employees of a charter school whose board of directors elects to become a participating employer under G.S. 135-5.3 are "teachers" for the purpose of membership in the North Carolina Teachers' and State Employees' Retirement System. In no event shall anything contained in this Part require the North Carolina Teachers' and State Employees' Retirement System to accept employees of a private employer as members or participants of the System.

(f)         Accountability. -

(1)        The school is subject to the financial audits, the audit procedures, and the audit requirements adopted by the State Board of Education Superintendent of Public Instruction for charter schools. These audit requirements may include the requirements of the School Budget and Fiscal Control Act.

(2)        The school shall comply with the reporting requirements established by the State Board of Education Superintendent of Public Instruction in the Uniform Education Reporting System.

(3)        The school shall report at least annually to the chartering entity and the State Board of Education Superintendent of Public Instruction the information required by the chartering entity or the State Board.Superintendent.

…

(j)         Driving Eligibility Certificates. - In accordance with rules adopted by the State Board of Education, Superintendent of Public Instruction, the designee of the school's board of directors shall do all of the following:

(1)        Sign driving eligibility certificates that meet the conditions established in G.S. 20-11.

(2)        Obtain the necessary written, irrevocable consent from parents, guardians, or emancipated juveniles, as appropriate, in order to disclose information to the Division of Motor Vehicles.

(3)        Notify the Division of Motor Vehicles when a student who holds a driving eligibility certificate no longer meets its conditions.

…."

SECTION 130.  G.S. 115C-238.29G reads as rewritten:

"§ 115C-238.29G.  Causes for nonrenewal or termination; disputes.

(a)        The State Board of Education, Superintendent of Public Instruction, or a chartering entity subject to the approval of the State Board of Education, Superintendent of Public Instruction, may terminate or not renew a charter upon any of the following grounds:

(1)        Failure to meet the requirements for student performance contained in the charter;

(2)        Failure to meet generally accepted standards of fiscal management;

(3)        Violations of law;

(4)        Material violation of any of the conditions, standards, or procedures set forth in the charter;

(5)        Two-thirds of the faculty and instructional support personnel at the school request that the charter be terminated or not renewed; or

(6)        Other good cause identified.

(b)        The State Board of Education Superintendent of Public Instruction shall develop and implement a process to address contractual and other grievances between a charter school and its chartering entity or the local board of education during the time of its charter.

(c)        The State Board Superintendent of Public Instruction and the charter school are encouraged to make a good-faith attempt to resolve the differences that may arise between them. They may agree to jointly select a mediator. The mediator shall act as a neutral facilitator of disclosures of factual information, statements of positions and contentions, and efforts to negotiate an agreement settling the differences. The mediator shall, at the request of either the State Board Superintendent or a charter school, commence a mediation immediately or within a reasonable period of time. The mediation shall be held in accordance with rules and standards of conduct adopted under Chapter 7A of the General Statutes governing mediated settlement conferences but modified as appropriate and suitable to the resolution of the particular issues in disagreement.

Notwithstanding Article 33C of Chapter 143 of the General Statutes, the mediation proceedings shall be conducted in private. Evidence of statements made and conduct occurring in a mediation are not subject to discovery and are inadmissible in any court action. However, no evidence otherwise discoverable is inadmissible merely because it is presented or discussed in a mediation. The mediator shall not be compelled to testify or produce evidence concerning statements made and conduct occurring in a mediation in any civil proceeding for any purpose, except disciplinary hearings before the State Bar or any agency established to enforce standards of conduct for mediators. The mediator may determine that an impasse exists and discontinue the mediation at any time. The mediator shall not make any recommendations or public statement of findings or conclusions. The State Board Superintendent and the charter school shall share equally the mediator's compensation and expenses. The mediator's compensation shall be determined according to rules adopted under Chapter 7A of the General Statutes."

SECTION 131.  G.S. 115C-238.29H reads as rewritten:

"§ 115C-238.29H.  State and local funds for a charter school.

(a)        The State Board of Education Superintendent of Public Instruction shall allocate to each charter school:

(1)        An amount equal to the average per pupil allocation for average daily membership from the local school administrative unit allotments in which the charter school is located for each child attending the charter school except for the allocation for children with disabilities and for the allocation for children with limited English proficiency;

(2)        An additional amount for each child attending the charter school who is a child with disabilities; and

(3)        An additional amount for children with limited English proficiency attending the charter school, based on a formula adopted by the State Board.Superintendent.

In accordance with G.S. 115C-238.29D(d), the State Board Superintendent shall allow for annual adjustments to the amount allocated to a charter school based on its enrollment growth in school years subsequent to the initial year of operation.

In the event a child with disabilities leaves the charter school and enrolls in a public school during the first 60 school days in the school year, the charter school shall return a pro rata amount of funds allocated for that child to the State Board, Superintendent, and the State Board Superintendent shall reallocate those funds to the local school administrative unit in which the public school is located. In the event a child with disabilities enrolls in a charter school during the first 60 school days in the school year, the State Board Superintendent shall allocate to the charter school the pro rata amount of additional funds for children with disabilities.

(a1)      Funds allocated by the State Board of Education Superintendent of Public Instruction may be used to enter into operational and financing leases for real property or mobile classroom units for use as school facilities for charter schools and may be used for payments on loans made to charter schools for facilities or equipment. However, State funds shall not be used to obtain any other interest in real property or mobile classroom units. No indebtedness of any kind incurred or created by the charter school shall constitute an indebtedness of the State or its political subdivisions, and no indebtedness of the charter school shall involve or be secured by the faith, credit, or taxing power of the State or its political subdivisions. Every contract or lease into which a charter school enters shall include the previous sentence. The school also may own land and buildings it obtains through non-State sources.

(b)        If a student attends a charter school, the local school administrative unit in which the child resides shall transfer to the charter school an amount equal to the per pupil local current expense appropriation to the local school administrative unit for the fiscal year. The amount transferred under this subsection that consists of revenue derived from supplemental taxes shall be transferred only to a charter school located in the tax district for which these taxes are levied and in which the student resides."

SECTION 132.  G.S. 115C-238.29I reads as rewritten:

"§ 115C-238.29I.  Notice of the charter school process; review of charter schools; Charter School Advisory Committee.

(a)        The State Board of Education Superintendent of Public Instruction shall distribute information announcing the availability of the charter school process described in this Part to each local school administrative unit and public postsecondary educational institution and, through press releases, to each major newspaper in the State.

(b)        Repealed by Session Laws 1997-18, s. 15(i).

(c)        The State Board of Education Superintendent of Public Instruction shall review and evaluate the educational effectiveness of the charter school approach authorized under this Part and the effect of charter schools on the public schools in the local school administrative unit in which the charter schools are located. The Board Superintendent shall report no later than January 1, 2002, to the Joint Legislative Education Oversight Committee with recommendations to modify, expand, or terminate that approach. The Board Superintendent  shall base its the recommendations predominantly on the following information:

(1)        The current and projected impact of charter schools on the delivery of services by the public schools.

(2)        Student academic progress in the charter schools as measured, where available, against the academic year immediately preceding the first academic year of the charter schools' operation.

(3)        Best practices resulting from charter school operations.

(4)        Other information the State Board Superintendent considers appropriate.

(d)        The State Board of Education Superintendent of Public Instruction may establish a Charter School Advisory Committee to assist with the implementation of this Part. The Charter School Advisory Committee may (i) provide technical assistance to chartering entities or to potential applicants, (ii) review applications for preliminary approval, (iii) make recommendations as to whether the State Board Superintendent should approve applications for charter schools, (iv) make recommendations as to whether the State Board Superintendent should terminate or not renew a charter, (v) make recommendations concerning grievances between a charter school and its chartering entity, the State Board, Superintendent, or a local board, (vi) assist with the review under subsection (c) of this section, and (vii) provide any other assistance as may be required by the State Board. Superintendent.

(e)        Notwithstanding the dates set forth in this Part, the State Board of Education Superintendent of Public Instruction may establish an alternative time line for the submission of applications, preliminary approvals, criminal record checks, appeals, and final approvals so long as the Board Superintendent grants final approval by March 15 of each calendar year."

SECTION 133.  G.S. 115C-238.29J reads as rewritten:

"§ 115C-238.29J.  Public and private assistance to charter schools.

(a)        Local boards of education are authorized and encouraged to provide administrative and evaluative support to charter schools located within their local school administrative units.

(b)        Private persons and organizations are encouraged to provide funding and other assistance to the establishment or operation of charter schools.

(c)        The State Board of Education shall direct the Department of Public Instruction to shall provide guidance and technical assistance, upon request, to applicants and potential applicants for charters.

(d)        The State Board of Education shall direct the Department of Public Instruction to shall notify the Department of Revenue when the State Board of Education Superintendent terminates, fails to renew, or grants a charter for a charter school."

SECTION 134.  G.S. 115C-238.29K reads as rewritten:

"§ 115C-238.29K.  Criminal history checks.

…

(b)        The State Board of Education Superintendent of Public Instruction shall adopt a policy on whether and under what circumstances school personnel shall be required to be checked for a criminal history. The policy shall not require school personnel to be checked for a criminal history check before preliminary approval is granted under G.S. 115C-238.29B. The Board Superintendent shall apply its the policy uniformly in requiring school personnel to be checked for a criminal history. The Board Superintendent may grant conditional approval of an application while the Board Superintendent is checking a person's criminal history and making a decision based on the results of the check.

The State Board Superintendent shall not require members of boards of directors of charter schools or employees of charter schools to pay for the criminal history check authorized under this section.

(c)        The Board of Education Superintendent shall require the person to be checked by the Department of Justice to (i) be fingerprinted and to provide any additional information required by the Department of Justice to a person designated by the State Board, Superintendent, or to the local sheriff or the municipal police, whichever is more convenient for the person, and (ii) sign a form consenting to the check of the criminal record and to the use of fingerprints and other identifying information required by the repositories. The State Board Superintendent shall consider refusal to consent when deciding whether to grant final approval of an application under G.S. 115C-238.29D and when making an employment recommendation. The fingerprints of the individual shall be forwarded to the State Bureau of Investigation for a search of the State criminal history record file, and the State Bureau of Investigation shall forward a set of fingerprints to the Federal Bureau of Investigation for a national criminal history record check. The Department of Justice shall provide to the State Board of Education Superintendent of Public Instruction the criminal history from the State and National Repositories of Criminal Histories of any school personnel for which the Board Superintendent requires a criminal history check.

The State Board Superintendent shall not require members of boards of directors of charter schools or employees of charter schools to pay for the fingerprints authorized under this section.

(d)        The State Board Superintendent of Public Instruction shall review the criminal history it receives on an individual. The State Board Superintendent shall determine whether the results of the review indicate that the individual (i) poses a threat to the physical safety of students or personnel, or (ii) has demonstrated that he or she does not have the integrity or honesty to fulfill his or her duties as school personnel and shall use the information when deciding whether to grant final approval of an application for a charter school under G.S. 115C-238.29D and for making an employment recommendation to the board of directors of a charter school. The State Board Superintendent shall make written findings with regard to how it used the information when deciding whether to grant final approval under G.S. 115C-238.29D and when making an employment recommendation.

(e)        The State Board Superintendent shall notify in writing the board of directors of the charter school of the determination by the State Board Superintendent as to whether the school personnel is qualified to operate or be employed by a charter school based on the school personnel's criminal history. At the same time, the State Board Superintendent shall provide to the charter school's board of directors the written findings the Board Superintendent makes in subsection (d) of this section and its the Superintendent's employment recommendation. If the State Board Superintendent recommends dismissal or nonemployment of any person, the board of directors of the charter school shall dismiss or refuse to employ that person. In accordance with the law regulating the dissemination of the contents of the criminal history file furnished by the Federal Bureau of Investigation, the State Board Superintendent shall not release nor disclose any portion of the school personnel's criminal history to the charter school's board of directors or employees. The State Board Superintendent also shall notify the school personnel of the procedure for completing or challenging the accuracy of the criminal history and the personnel's right to contest the State Board's Superintendent's determination in court.

(f)         All the information received by the State Board of Education Superintendent of Public Instruction or the charter school in accordance with subsection (e) of this section through the checking of the criminal history is privileged information and is not a public record but is for the exclusive use of the State Board of Education Superintendent or the board of directors of the charter school. The State Board of Education Superintendent or the board of directors of the charter school may destroy the information after it is used for the purposes authorized by this section after one calendar year.

(g)        There shall be no liability for negligence on the part of the State Board of Education Superintendent of Public Instruction or the board of directors of the charter school, or their employees, arising from any act taken or omission by any of them in carrying out the provisions of this section. The immunity established by this subsection shall not extend to gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable. The immunity established by this subsection shall be deemed to have been waived to the extent of indemnification by insurance, indemnification under Articles 31A and 31B of Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes."

SECTION 135.  G.S. 115C-238.33 reads as rewritten:

"§ 115C-238.33.  Plan for effective use of fiscal resources; comprehensive plan to implement extended services programs.

(a)        The State Board of Education Superintendent of Public Instruction shall develop model plans which show how to (i) deliver comprehensive extended services; (ii) effectively use all fiscal resources, including federal funds, and other resources under its control that support the goals of this Part; and (iii) maintain quality program evaluation. The model plans shall be communicated to local units and building-level committees.

(b)        Repealed by Session Laws, 1997-18, c. 15(j)."

SECTION 136.  G.S. 115C-238.50(b)(3) reads as rewritten:

"(b)      All the cooperative innovative high school programs established under this Part shall:

…

(3)        Be centered on the core academic standards represented by the college preparatory or tech prep program of study as defined by the State Board of Education. Superintendent of Public Instruction."

SECTION 137.  G.S. 115C-238.50A reads as rewritten:

"§ 115C-238.50A.  Definitions.

The following definitions apply in this Part:

(1)        Constituent institution. - A constituent institution as defined in G.S. 116-2(4).

(2)        Education partner. - An education partner as provided in G.S. 115C-238.52.

(3)        Governing board. - The State Board of Education, Superintendent of Public Instruction, the State Board of Community Colleges, the Board of Governors of The University of North Carolina, or the Board of the North Carolina Independent Colleges and Universities.

(4)        Local board of trustees. - The board of trustees of a community college, constituent institution of The University of North Carolina, or private college located in North Carolina."

SECTION 138.  G.S. 115C-238.51 reads as rewritten:

"§ 115C-238.51.  Application process.

(a)        A local board of education and at least one local board of trustees shall jointly apply to establish a cooperative innovative high school program under this Part.

(b)        The application shall contain at least the following information:

(1)        A description of a program that implements the purposes in G.S. 115C-238.50.

(2)        A statement of how the program relates to the Economic Vision Plan adopted for the economic development region in which the program is to be located.

(3)        The facilities to be used by the program and the manner in which administrative services of the program are to be provided.

(4)        A description of student academic and vocational achievement goals and the method of demonstrating that students have attained the skills and knowledge specified for those goals.

(5)        A description of how the program will be operated, including budgeting, curriculum, transportation, and operating procedures.

(6)        The process to be followed by the program to ensure parental involvement.

(7)        The process by which students will be selected for and admitted to the program.

(8)        A description of the funds that will be used and a proposed budget for the program. This description shall identify how the average daily membership (ADM) and full-time equivalent (FTE) students are counted.

(9)        The qualifications required for individuals employed in the program.

(10)      The number of students to be served.

(11)      A description of how the program's effectiveness in meeting the purposes in G.S. 115C-238.50 will be measured.

(c)        The application shall be submitted to the State Board of Education Superintendent of Public Instruction and the applicable governing Boards. The Boards shall appoint a joint advisory committee to review the applications and to recommend to the Boards those programs that meet the requirements of this Part and that achieve the purposes set out in G.S. 115C-238.50.

(d)        The Boards may approve programs recommended by the joint advisory committee or may approve other programs that were not recommended. The Boards shall approve all applications by June 30 of each year. No application shall be approved unless the State Board of Education Superintendent of Public Instruction and the applicable governing Board find that the application meets the requirements set out in this Part and that granting the application would achieve the purposes set out in G.S. 115C-238.50. Priority shall be given to applications that are most likely to further State education policies, to address the economic development needs of the economic development regions in which they are located, and to strengthen the educational programs offered in the local school administrative units in which they are located."

SECTION 139.  G.S. 115C-238.53 reads as rewritten:

"§ 115C-238.53.  Program operation.

(a)        A program approved by the State is accountable to the local board of education.

(b)        A program approved under this Part shall operate under the terms of a written agreement signed by the local board of education, local board of trustees, State Board of Education, Superintendent of Public Instruction, and applicable governing Board. The agreement shall incorporate the information provided in the application, as modified during the approval process, and any terms and conditions imposed on the program by the State Board of Education Superintendent of Public Instruction and the applicable governing Board. The agreement may be for a term of no longer than five school years.

(c)        A program may be operated in a facility owned or leased by the local board of education, the local board of trustees, or the education partner, if any.

(d)        A program approved under this Part shall provide instruction each school year for at least 180 days during nine calendar months, shall comply with laws and policies relating to the education of students with disabilities, and shall comply with Article 27 of this Chapter.

(e)        A program approved under this Part may use State, federal, and local funds allocated to the local school administrative unit, to the applicable governing Board, and to the college or university to implement the program. If there is an education partner and if it is a public body, the program may use State, federal, and local funds allocated to that body.

(f)         Except as provided in this Part and under the terms of the agreement:

(1)        A program shall have the same exemptions from statutes and rules as charter schools operating under Part 6A of this Article, other than those pertaining to personnel.

(2)        A program may be exempted by the State Board of Education Superintendent of Public Instruction or by the applicable governing Board from laws and rules applicable to a local board of education, a local school administrative unit, a community college, a constituent institution, or a local board of trustees."

SECTION 140.  G.S. 115C-238.55 reads as rewritten:

"§ 115C-238.55.  Evaluation of programs.

The State Board of Education Superintendent of Public Instruction and the governing Boards shall evaluate the success of students in programs approved under this Part. Success shall be measured by high school retention rates, high school completion rates, high school dropout rates, certification and associate degree completion, admission to four-year institutions, postgraduation employment in career or study-related fields, and employer satisfaction of employees who participated in and graduated from the programs. The Boards shall jointly report by January 15 of each year to the Joint Legislative Education Oversight Committee on the evaluation of these programs."

SECTION 141.  G.S. 115C-239 reads as rewritten:

"§ 115C-239.  Authority of local boards of education.

Each local board of education is hereby authorized to acquire, own, lease, contract and operate school buses for the transportation of pupils enrolled in the public schools of such local school administrative unit, and of persons employed in the operation of such schools in accordance with rules and regulations adopted by the State Board of Education Superintendent under the authority of G.S. 115C-12(17) and within the limitations set forth in G.S. 115C-239 to 115C-246, 115C-248 to 115C-254 and 115C-256 to 115C-259. Boards of education which own and operate school buses for the transportation of pupils shall have authority to establish separate systems of transportation for pupils attending elementary schools and for pupils attending middle schools, junior high schools, or senior high schools. Each such board may operate such buses to and from such of the schools within the local school administrative unit, and in such number, as the board shall from time to time find practicable and appropriate for the safe, orderly and efficient transportation of such pupils and employees to such schools."

SECTION 142.  G.S. 115C-240 reads as rewritten:

"§ 115C-240.  Authority and duties of State Board of Education. Superintendent of Public Instruction.

(a)        The State Board of Education Superintendent of Public Instruction shall promulgate rules and regulations for the operation of a public school transportation system.

(b)        The State Board of Education Superintendent of Public Instruction shall be under no duty to supply transportation to any pupil or employee enrolled or employed in any school. Neither the State nor the State Board of Education Superintendent shall in any manner be liable for the failure or refusal of any local board of education to furnish transportation, by school bus or otherwise, to any pupil or employee of any school, or for any neglect or action of any county or city board of education, or any employee of any such board, in the operation or maintenance of any school bus.

(c)        The State Board of Education Superintendent of Public Instruction shall from time to time adopt such rules and regulations with reference to the construction, equipment, color, and maintenance of school buses, the number of pupils who may be permitted to ride at the same time upon any bus, and the age and qualifications of drivers of school buses as it shall deem to be desirable for the purpose of promoting safety in the operation of school buses. Every school bus that is capable of operating on diesel fuel shall be capable of operating on diesel fuel with a minimum biodiesel concentration of B-20, as defined in G.S. 143-58.4. No school bus shall be operated for the transportation of pupils unless such bus is constructed and maintained as prescribed in such regulations and is equipped with adequate heating facilities, a standard signaling device for giving due notice that the bus is about to make a turn, an alternating flashing stoplight on the front of the bus, an alternating flashing stoplight on the rear of the bus, and such other warning devices, fire protective equipment and first aid supplies as may be prescribed for installation upon such buses by the regulation of the State Board of Education.Superintendent of Public Instruction.

(d)        The State Board of Education Superintendent of Public Instruction shall assist local boards of education by establishing guidelines and a framework through which local boards may establish, review and amend school bus routes prepared pursuant to G.S. 115C-246. The State Board shall also require local boards to implement the Transportation Information Management System or an equivalent system approved by the State Board of Education, no later than September 1, 1992. The State Board of Education Superintendent shall also assist local boards of education with reference to the acquisition and maintenance of school buses or any other question which may arise in connection with the organization and operation of school bus transportation systems of local boards.

(e)        The State Board of Education Superintendent of Public Instruction shall allocate to the respective local boards of education funds appropriated from time to time by the General Assembly for the purpose of providing transportation to the pupils enrolled in the public schools within this State. Such funds shall be allocated by the State Board of Education Superintendent in accordance with the number of pupils to be transported, the length of bus routes, road conditions and all other circumstances affecting the cost of the transportation of pupils by school bus to the end that the funds so appropriated may be allocated on a fair and equitable basis, according to the needs of the respective local school administrative units and so as to provide the most efficient use of such funds. Such allocation shall be made by the State Board of Education Superintendent at the beginning of each fiscal year, except that the State Board Superintendent may reserve for future allocation from time to time within such fiscal year as the need therefor shall be found to exist, a reasonable amount not to exceed ten percent (10%) of the total funds available for transportation in such fiscal year from such appropriation. If there is evidence of inequitable or inefficient use of funds, the State Board of Education Superintendent shall be empowered to review school bus routes established by local boards pursuant to G.S. 115C-246 as well as other factors affecting the cost of the transportation of pupils by school bus.

(f)         The respective local boards shall use such funds for the purposes of replacing, maintaining, insuring, and operating public school buses and service vehicles in accordance with the provisions of G.S. 115C-239 to 115C-246, 115C-248 to 115C-254 and 115C-256 to 115C-259 and for no other purpose, but in the making of expenditures for such purposes shall be subject to rules and regulations promulgated by the State Board of Education. Superintendent of Public Instruction."

SECTION 143.  G.S. 115C-242 reads as rewritten:

"§ 115C-242.  Use and operation of school buses.

Public school buses may be used for the following purposes only, and it shall be the duty of the superintendent of the school of each local school administrative unit to supervise the use of all school buses operated by such local school administrative unit so as to assure and require compliance with this section:

(1)        A school bus may be used for the transportation of pupils enrolled in and employees in the operation of the school to which such bus is assigned by the superintendent of the local school administrative unit. Except as otherwise herein provided, such transportation shall be limited to transportation to and from such school for the regularly organized school day, and from and to the points designated by the principal of the school to which such bus is assigned, for the receiving and discharging of passengers. No pupil or employee shall be so transported upon any bus other than the bus to which such pupil or employee has been assigned pursuant to the provisions of this Article: Provided, that children enrolled in a Headstart program or any More at Four program may be transported on public school buses, and any additional costs associated with such contractual arrangements shall be incurred by the benefitting Head Start or More at Four program: Provided further, that children with disabilities may be transported to and from the nearest appropriate private school having a special education program approved by the State Board of Education Superintendent of Public Instruction if the children to be transported are or have been placed in that program by a local school administrative unit as a result of the State or the unit's duty to provide such children with a free appropriate public education.

(2)        In the case of illness or injury requiring immediate medical attention of any pupil or employee while such pupil or employee is present at the school in which such pupil is enrolled or such employee is employed, the principal of such school may, in his discretion, permit such pupil or employee to be transported by a school bus to a doctor or hospital for medical treatment, and may, in his discretion, permit such other person as he may select to accompany such pupil.

(3)        The board of education of any local school administrative unit may operate the school buses of such unit one day prior to the opening of the regular school term for the transportation of pupils and employees to and from the school to which such pupils are assigned or in which they are enrolled and such employees are employed, for the purposes of the registration of students, the organization of classes, the distribution of textbooks, and such other purposes as will, in the opinion of the superintendent of the schools of such unit, promote the efficient organization and operation of such public schools.

(4)        A local board of education which elects to operate a school bus transportation system, shall not be required to provide transportation for any school employee, nor shall such board be required to provide transportation for any pupil living within one and one half miles of the school in which such pupil is enrolled.

(5)        Local boards of education, under rules adopted by the State Board of Education, Superintendent of Public Instruction, may permit the use and operation of school buses for the transportation of pupils and instructional personnel as the board deems necessary to serve the instructional programs of the schools. Included in the use permitted by this section is the transportation of children with disabilites, disabilities, and children enrolled in programs that require transportation from the school grounds during the school day, such as special vocational or occupational programs. On any such trip, a city or county-owned school bus shall not be taken out of the State.

If State funds are inadequate to pay for the transportation approved by the local board of education, local funds may be used for these purposes. Local boards of education shall determine that funds are available to such boards for the transportation of children to and from the school to which they are assigned for the entire school year before authorizing the use and operation of school buses for other services deemed necessary to serve the instructional program of the schools.

Children with disabilities may be transported to and from the nearest appropriate private school having a special education program approved by the State Board of Education Superintendent of Public Instruction if the children to be transported have been placed in that program by a local school administrative unit as a result of the State or the unit's duty to provide those children with a free appropriate public education.

(6)        School buses owned by a local board of education may be used for emergency management purposes in any state of disaster or local state of emergency declared under Chapter 166A of the General Statutes. Under rules and regulations adopted by a local board of education, its school buses may be used with its permission for the purpose of testing emergency management plans; however, neither the State Board of Education Superintendent of Public Instruction nor the local board of education shall be liable for the operating cost, any compensation claims or any tort claims resulting from the test.

(7)        Uses authorized by G.S. 115C-243."

SECTION 144.  G.S. 115C-243(f) reads as rewritten:

"(f)       Before any agreement under this section may be signed, the State Board of Education Superintendent of Public Instruction shall adopt a uniform schedule of charges for the use of buses under this section. Such schedule shall include a charge by the hour and by the mile which shall cover all costs both fixed and variable, including depreciation, gasoline, fuel, labor, maintenance, and insurance. The schedule may be amended by the State Board of Education. Superintendent. The schedule of charges adopted by the local board of education under subsection (c) may vary from the State schedule only to cover changes in wages."

SECTION 145.  G.S. 115C-244(c) reads as rewritten:

"(c)       Any pupil enrolled in any school, or the parent or guardian of any such pupil, or the person standing in loco parentis to such pupil, may apply to the principal of such school for transportation of such pupil to and from such school by school bus for the regularly organized school day. The principal shall deliver the application to the superintendent or superintendent's designee, who shall assign a pupil to a school bus if the pupil is entitled to school bus transportation under this Article and the rules of the State Board of Education. Superintendent of Public Instruction. Such assignment shall be made by the superintendent or superintendent's designee so as to provide for the orderly, safe and efficient transportation of pupils to such school and so as to promote the orderly and efficient administration of the school and the health, safety and general welfare of the pupils to be so transported. Assignments of pupils and employees to school buses may be changed by the superintendent or superintendent's designee as he may from time to time find proper for the safe and efficient transportation of such pupils and employees."

SECTION 146.  G.S. 115C-245(a) reads as rewritten:

"(a)       Each local board, which elects to operate a school bus transportation system, shall employ the necessary drivers for such school buses. The drivers shall have all qualifications prescribed by the regulations of the State Board of Education Superintendent of Public Instruction herein provided for and must be at least 18 years old and have at least six months driving experience as a licensed operator of a motor vehicle before employment as a regular or substitute driver, but the selection and employment of each driver shall be made by the local board of education, and the driver shall be the employee of such local school administrative unit. Each local board of education shall assign the bus drivers employed by it to the respective schools within the jurisdiction of such board, and the superintendent or superintendent's designee shall assign the drivers to the school buses to be driven by them. No school bus shall at any time be driven or operated by any person other than the bus driver assigned to such bus except by the express direction of the superintendent or superintendent's designee or in accordance with rules and regulations of the appropriate local board of education."

SECTION 147.  G.S. 115C-246(a) reads as rewritten:

"(a)       The superintendent of the local school administrative unit shall, prior to the commencement of each regular school year, prepare a plan for a definite route, including stops for receiving and discharging pupils, for each school bus so as to assure the most efficient use of such bus and the safety and convenience of the pupils assigned thereto. The superintendent may, in his discretion, obtain the advice of the State Board of Education Department of Public Instruction with reference to the plan. The buses shall be operated upon the route so established and not otherwise, except as provided in this Article. From time to time the principal may suggest changes in any such bus route as he shall deem proper for the said purposes, and the same shall be effective when approved by the superintendent of the local school administrative unit."

SECTION 148.  G.S. 115C-249 reads as rewritten:

"§ 115C-249.  Purchase and maintenance of school buses, materials and supplies.

(a)        To the extent that the funds shall be made available to it for such purpose, a local board of education is authorized to purchase from time to time such additional school buses and service vehicles or replacements for school buses and service vehicles, as may be deemed by such board to be necessary for the safe and efficient transportation of pupils enrolled in the schools within such local school administrative unit. Any school bus so purchased shall be constructed and equipped as prescribed by the provisions of this Article and by the regulations of the State Board of Education Superintendent of Public Instruction issued pursuant thereto. Any school bus so purchased that is capable of operating on diesel fuel shall be capable of operating on diesel fuel with a minimum biodiesel concentration of B-20, as defined in G.S. 143-58.4. At least two percent (2%) of the total volume of fuel purchased annually by local school districts statewide for use in school bus diesel engine motor vehicles shall be biodiesel fuel of a minimum blend of B-20, to the extent that biodiesel blend is available and compatible with the technology of the vehicles or equipment used.

(b)        The tax-levying authorities of any county are hereby authorized to make provision from time to time in the capital outlay budget of the county for the purchase of such school buses or service vehicles.

(c)        Any funds appropriated from time to time by the General Assembly for the purchase of school buses or service vehicles shall be allocated by the State Board of Education Superintendent of Public Instruction to the respective local boards of education in accordance with the requirements of such boards as determined by the State Board of Education, Superintendent, and thereupon shall be paid over to the respective local boards of education in accordance with such allocation.

(d)        The title to any additional or replacement school bus or service vehicle purchased pursuant to the provisions of this section, shall be taken in the name of the board of education of such local school administrative unit, and such bus shall in all respects be maintained and operated pursuant to the provisions of this Article in the same manner as any other public school bus.

(e)        It shall be the duty of the county board of education to provide adequate buildings and equipment for the storage and maintenance of all school buses and service vehicles owned or operated by the board of education of any local school administrative unit in such county. It shall be the duty of the tax-levying authorities of such county to provide in its capital outlay budget for the construction or acquisition of such buildings and equipment as may be required for this purpose.

(f)         In the event of the damage or destruction of any school bus or service vehicle by fire, collision, or otherwise, the board of education of the local school administrative unit which shall own or operate such bus or service vehicle may apply to the State Board of Education Superintendent of Public Instruction for funds with which to replace it. If the State Board of Education finds that such bus or service vehicle has been destroyed or damaged to the extent that it cannot be made suitable for further use, and if the State Board of Education Superintendent finds that the replacement of such bus or service vehicle is necessary in order to enable such local school administrative unit to operate properly its school bus transportation system, the State Board of Education Superintendent shall allot to the board of education of such local school administrative unit from the funds now held by the State Board of Education Superintendent for the replacement of school buses or service vehicles, or from funds hereafter appropriated by the General Assembly for that purpose, a sum sufficient to purchase a new school bus or service vehicle to be used as a replacement for such damaged or destroyed bus or service vehicle and upon such allocation such sum shall be paid over to or for the account of the board of education of such local school administrative unit for such purpose.

(g)        Repealed by Session Laws 2003-147, s. 3, effective for a local school administrative unit when the unit is certified as being E-Procurement compliant, or April 1, 2004, whichever occurs first.

(h)        Appropriations by the General Assembly for the purchase of public school buses shall not revert to the General Fund. Any unexpended portion of those appropriations shall at the end of each fiscal year be transferred to a reserve account and be held, together with any other funds appropriated for the purpose, for the purchase of public school buses."

SECTION 149.  G.S. 115C-250 reads as rewritten:

"§ 115C-250.  Authority to expend funds for transportation of children with disabilities.

(a)        The State Board of Education Superintendent of Public Instruction and local boards of education may expend public funds for transportation of children with disabilities who are unable because of their disability to ride the regular school buses and who have been placed in programs by a local school board as a part of its duty to provide these children with a free appropriate education under Article 9 of this Chapter. At the option of the local board of education with the concurrence of the State Board of Education, Superintendent, funds appropriated to the State Board of Education Department of Public Instruction for contract transportation of children with disabilities may be used to purchase buses and minibuses as well as for the purposes authorized in the budget. The State Board of Education Superintendent of Public Instruction shall adopt rules concerning the construction and equipment of these buses and minibuses.

The Departments of Health and Human Services, Juvenile Justice and Delinquency Prevention, and Correction may also expend public funds for transportation of children with disabilities who are unable because of their disability to ride the regular school buses and who have been placed in programs by one of these agencies as a part of that agency's duty to provide these children with a free appropriate public education under Article 9 of this Chapter.

If a local area mental health center places a child with a disability in an educational program, the local area mental health center shall pay for the transportation of the child who is unable due to the disability to ride the regular school buses to the program.

(b)        Funds appropriated for the transportation of children with disabilities may be used to pay transportation safety assistants employed in accordance with G.S. 115C-245(e) for buses to which children with disabilities are assigned."

SECTION 150.  G.S. 115C-251 reads as rewritten:

"§ 115C-251.  Transportation supervisors.

The State Board of Education Superintendent of Public Instruction shall from time to time adopt such rules and regulations with regard to the qualifications of persons employed by local boards of education as chief mechanic or supervisor of transportation as it shall deem necessary or desirable for the purpose of assuring the proper maintenance and safety of school buses. A local board of education shall not employ any person as chief mechanic or supervisor of transportation if that person does  not meet the qualifications established by the State Board. Superintendent."

SECTION 151.  G.S. 115C-253 reads as rewritten:

"§ 115C-253.  Contracts for transportation.

Any local board of education may, in lieu of the operation by it of public school buses, enter into a contract with any person, firm or corporation for the transportation by such person, firm or corporation of pupils enrolled in the public schools of such local school administrative unit for the same purposes for which such local school administrative unit is authorized by this Article to operate public school buses. Any vehicle used by such person, firm or corporation for the transportation of such pupils shall be constructed and equipped as provided in rules and regulations promulgated by the State Board of Education, Superintendent of Public Instruction, and the driver of such vehicle shall possess all of the qualifications prescribed by rules and regulations promulgated by the State Board of Education. Superintendent. Where a contract for transportation of pupils is entered into between a local board of education and any person, firm or corporation which contemplates the use of an automobile or vehicle other than a bus for the transportation of 16 pupils or less, the automobile or vehicle shall not be required to be constructed and equipped as provided for in G.S. 115C-240(c), but shall be constructed and equipped pursuant to rules and regulations promulgated by the State Board of Education. Superintendent. In the event that any local board of education shall enter into such a contract, the board may use for such purposes any funds which it might use for the operation of school buses owned by the board, and the tax-levying authorities of the county or of the city may provide in the county or city budget such additional funds as may be necessary to carry out such contracts."

SECTION 152.  G.S. 115C-263 reads as rewritten:

"§ 115C-263.  Required provision of services.

As a part of the function of the public school system, local boards of education shall provide to the extent practicable school food services in the schools under their jurisdiction. All school food services made available under this authority shall be provided in accordance with standards and regulations recommended adopted by the Superintendent of Public Instruction and approved by the State Board of Education.Instruction."

SECTION 153.  G.S. 115C-264(c) reads as rewritten:

"(c)       All school food services shall be operated on a nonprofit basis, and any earnings therefrom over and above the cost of operation as defined herein shall be used to reduce the cost of food, to serve better food, or to provide free or reduced-price lunches to indigent children and for no other purpose. The term "cost of operation" means the actual cost incurred in the purchase and preparation of food, the salaries of all personnel directly engaged in providing food services, and the cost of nonfood supplies as outlined under standards adopted by the State Board of Education. Superintendent of Public Instruction. "Personnel" means child nutrition supervisors or directors, bookkeepers directly engaged in food service record keeping and those persons directly involved in preparing and serving food. Child nutrition personnel shall be paid from the funds of food services only for services rendered in behalf of the child nutrition program. Any cost incurred in the provisions and maintenance of school food services over and beyond the cost of operation shall be included in the budget request filed annually by local boards of education with boards of county commissioners. Public schools are not required to comply with G.S. 115C-522(a) in the purchase of supplies and food for such school food services."

SECTION 154.  G.S. 115C-264.3 reads as rewritten:

"§ 115C-264.3.  Child Nutrition Program standards.

The State Board of Education, Superintendent of Public Instruction, in direct consultation with a cross section of local directors of child nutrition services, shall establish statewide nutrition standards for school meals, a la carte foods and beverages, and items served in the After School Snack Program administered by the Department of Public Instruction and child nutrition programs of local school administrative units. The nutrition standards will promote gradual changes to increase fruits and vegetables, increase whole grain products, and decrease foods high in total fat, trans fat, saturated fat, and sugar. The nutrition standards adopted by the State Board of Education Superintendent shall be implemented initially in elementary schools. All elementary schools shall achieve a basic level by the end of the 2009-2010 school year, followed by middle schools and then high schools."

SECTION 155.  G.S. 115C-265 reads as rewritten:

"§ 115C-265.  Rules and regulations for distribution of library/media personnel funds; employment of personnel.

(a)        The State Board of Education Superintendent of Public Instruction is authorized to promulgate rules and regulations for the distribution of library/media personnel funds, on the basis of average daily membership (ADM), to each local school administrative unit of the State.

(b)        Each local school administrative unit in the State shall employ library/media personnel in accordance with State library/media guidelines approved by the State Board of Education Superintendent of Public Instruction insofar as funds are approved for that purpose by the North Carolina General Assembly."

SECTION 156.  G.S. 115C-271 reads as rewritten:

"§ 115C-271.  Selection by local board of education, term of office.

(a)        It is the policy of the State that each local board of education has the sole discretion to elect a superintendent of schools. However, the State Board Superintendent of Public Instruction shall adopt rules that establish the qualifications for election. At a minimum, each superintendent shall have been a principal in a North Carolina public school or shall have other leadership, management, and administrative experience. In addition, the State Board Superintendent of Public Instruction shall adopt rules that include minimum credentials, educational prerequisites, and relevant experience requirements that would qualify a person to serve as a superintendent without having direct experience or certification as an educator. It is the duty of each local board to elect a superintendent who is qualified. If a local board elects a superintendent who is not qualified or who cannot qualify under this section, then the election and contract are null and void, and the board shall elect a person who is qualified.

(b)        Each local board of education shall elect a superintendent under a written contract of employment for a term of no more than four years, ending on June 30 of the final months of the contract. Contracts of employment for a period of less than one year shall be governed and limited by G.S. 115C-275. Each local board shall file a copy of the contract with the State Board of Education Department of Public Instruction before the individual is eligible for this office.

…

(d)        A local board may terminate the superintendent's contract before the contract term of employment has expired so long as all the following conditions are met:

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(4)        The local board notifies the State Board Superintendent of Public Instruction of the funds that are to be transferred or used for this purpose.

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Immediately upon receipt of the notification from a local board under this subsection, the State Board Superintendent of Public Instruction shall review the accounts of that local school administrative unit. If the State Board Superintendent of Public Instruction finds that the local board failed to meet all the conditions set out in this subsection, the State Board Superintendent of Public Instruction shall issue a warning to the local board as provided in G.S. 115C-451 and, in addition to any other actions the State Board Superintendent of Public Instruction may take under G.S. 115C-451, shall order the local board to take action to comply with this subsection."

SECTION 157.  G.S. 115C-272 reads as rewritten:

"§ 115C-272.  Residence, oath of office, and salary of superintendent.

(a)        Every superintendent shall reside in the county in which he is employed. The superintendent shall not teach, nor be regularly employed in any other capacity that may limit or interfere with his duties as superintendent. Each superintendent, before entering upon the duties of his office, shall take an oath for the faithful performance thereof. The salary of the superintendent shall be in accordance with a State standard salary schedule, fixed and determined by the State Board of Education Superintendent of Public Instruction as provided by law; and such salary schedule for superintendents shall be determined on the same basis for both county and city superintendents and shall take into consideration the amount of work inherent to the office of both county and city superintendents; and such schedule shall be published in the same way and manner as the schedules for teacher and principal salaries are now published.

(b)        Superintendents shall be paid promptly when their salaries are due provided the legal requirements for their employment and service have been met. All superintendents employed by any local school administrative unit who are paid from local funds shall be paid promptly as provided by law and as State allotted superintendents are paid. Superintendents paid from State funds shall be paid as follows:

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(2)        Notwithstanding any provisions of this section to the contrary no person shall be entitled to pay for any vacation day not earned by that person. Vacation days shall not be used for extending the term of employment of individuals and shall not be cumulative from one fiscal year to another fiscal year: Provided, that superintendents may accumulate annual vacation leave days as follows: annual leave may be accumulated without any applicable maximum until June 30 of each year. On June 30 of each year, any superintendent with more than 30 days of accumulated leave shall have the excess accumulation converted to sick leave so that only 30 days are carried forward to July 1 of the same year. All vacation leave taken by the superintendent will be upon the authorization of his immediate supervisor and under policies established by the local board of education. An employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 240 hours or 30 days when separated from service due to resignation, dismissal, reduction in force, death, or service retirement. Upon separation from service due to service retirement, any annual vacation leave over 30 days will convert to sick leave and may be used for creditable service at retirement in accordance with G.S. 135-4(e). If the last day of terminal leave falls on the last workday in the month, payment shall be made for the remaining nonworkdays in that month. Employees retiring on disability retirement may exhaust annual leave rather than be paid in a lump sum. The provisions of this subdivision shall be accomplished without additional State and local funds being appropriated for this purpose. The State Board of Education Superintendent of Public Instruction shall adopt rules and regulations for the administration of this subdivision.

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(c)        The State Board of Education, Superintendent of Public Instruction, in fixing the State standard salary schedule of superintendents as authorized by law, shall provide that superintendents who entered the armed or auxiliary forces of the United States after September 16, 1940, and who left their positions for such service, shall be allowed experience increments for the period of such service as though the same had not been interrupted thereby, in the event such persons return to the position of teachers, principals or superintendents in the public schools of the State after having been honorably discharged from the armed or auxiliary forces of the United States."

SECTION 158.  G.S. 115C-274 reads as rewritten:

"§ 115C-274.  Removal.

(a)        Local boards of education are authorized to remove a superintendent who is guilty of immoral or disreputable conduct or who shall fail or refuse to perform the duties required of him by law. In case the State Board of Education Superintendent of Public Instruction has sufficient evidence at any time that any superintendent of schools is not capable of discharging, or is not discharging, the duties of his office as required by law or is guilty of immoral or disreputable conduct, the State Board of Education Superintendent of Public Instruction shall report this matter to the board of education employing said superintendent of schools. It shall then be the duty of that board of education to hear the evidence in the case and, if after careful investigation it shall find the charges true, it shall declare the office vacant at once and proceed to elect a successor: Provided, that such superintendent shall have the right to try his title to office in the courts of the State.

(b)        If the superintendent shall fail in the duties enumerated in G.S. 115C-276(g), 115C-276(h), 115C-276(i), or any other duties as may be assigned him, he shall be subject, after notice, to an investigation by the State Board of Education Superintendent of Public Instruction or by his board of education for failure to perform his duties. For persistent failure to perform these duties, the State Board of Education Superintendent of Public Instruction may revoke the superintendent's certificate and the superintendent may be dismissed by his board of education.

(c)        The identification by the State Board of Education Superintendent of Public Instruction of more than half the schools in a local school administrative unit as low-performing under G.S. 115C-105.37 is evidence that the superintendent is unable to fulfill the duties of the office, and the State Board Superintendent of Public Instruction may appoint an interim superintendent to carry out the duties of the superintendent under G.S. 115C-105.39, may revoke the superintendent's certificate under this section, may dismiss the superintendent under G.S. 115C-105.39, or may take any combination of these actions."

SECTION 159.  G.S. 115C-276 reads as rewritten:

"§ 115C-276.  Duties of superintendent.

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(g)        To Familiarize Himself with and to Implement State Policies and Rules. - It shall be the duty of the superintendent to keep himself thoroughly informed as to all policies promulgated and rules adopted by the State Superintendent of Public Instruction and the State Board of Education, for the organization and government of the public schools. The superintendent shall notify and inform his board of education, supervisors, principals, teachers, janitors, bus drivers, and all other persons connected with the public schools, of such policies and rules. In the performance of these duties, the superintendent shall confer, work, and plan with all school personnel to achieve the best methods of instruction, school organization and school government.

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(i)         To Distribute Certain Supplies and Information. - The superintendent shall distribute to all school personnel all blanks, registers, report cards, record books, bulletins, and all other supplies and information furnished by the State Superintendent and the State Board of Education and give instruction for their proper use.

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(k)        To Submit Organization Reports and Other Information to the State Board. Superintendent of Public Instruction. - Each year the superintendent of each local school administrative unit shall submit to the State Board of Education Superintendent of Public Instruction statistical reports, certified by the chairman of the board of education, showing the organization of the schools in his unit and any additional information the State Board State Superintendent may require. At the end of the second month of school each year, local boards of education, through the superintendent, shall report school organization, employees' duties, class sizes, and teaching loads to the State Board of Education State Superintendent as provided in G.S. 115C-47(10). As of February 1 each year, local boards of education, through the superintendent, shall report all exceptions to individual class size and daily teaching load maximums that occur at that time.

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(n)        To Issue Salary Vouchers. - The authority for a superintendent to issue vouchers for the salary of all school employees, whether paid from State or local funds, shall be a monthly payroll, prepared on forms furnished by the State Board of Education Superintendent of Public Instruction and containing all information required by the State Board of Education. Superintendent of Public Instruction. This monthly payroll shall be signed by the principal of the school. If any voucher so drawn is chargeable against district funds, the amount so charged and the district to which said amount is charged shall be specified on the voucher. The superintendent shall not approve the vouchers for the pay of principals or teachers until the monthly and annual reports required by the local board of education are made.

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(q)        To Assign School Principals. - Subject to local board policy, the superintendent shall have the authority to assign principals to school buildings. When making an assignment, the superintendent shall consider (i) whether a principal has demonstrated the leadership ability to increase student achievement at a school where conditions indicated a significant risk of low student performance; and (ii) how to maintain stability at a school where, during the time the principal has been at a school, there has been significant improvement on end-of-course or end-of-grade tests and other accountability measures developed by the State Board of Education. Superintendent of Public Instruction.

…."

SECTION 160.  G.S. 115C-284 reads as rewritten:

"§ 115C-284.  Method of selection and requirements.

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(b1)      To qualify for certification as a school administrator, an individual must meet all of the following requirements:

(1)        Submit a complete application to the State Board. Superintendent of Public Instruction.

…

(4)        Have one of the following:

a.         A graduate degree from a public school administration program that meets the public school administration program approval standards established by the State Board of Education. Superintendent of Public Instruction.

b.         A master's degree from an accredited college or accredited university and, by December 31, 1999, have completed a public school administration program that meets the public school administration program approval standards set by the State Board of Education. Superintendent of Public Instruction.

c.         Education and training determined by the State Board of Education Superintendent of Public Instruction as equivalent.

(5)        Pass the exam adopted by the State Board.Superintendent of Public Instruction.

(c)        The State Board of Education Superintendent of Public Instruction shall have entire control of certifying all applicants for supervisory and professional positions in all public elementary and high schools of North Carolina; and it shall prescribe the rules and regulations for the renewal and extension of all certificates, and shall determine and fix the salary for each grade and type of certificate which it authorizes. The State Board of Education Superintendent of Public Instruction shall require each applicant for an initial certificate or graduate certificate to demonstrate the applicant's academic and professional preparation by achieving a prescribed minimum score at least equivalent to that required by the Board on November 30, 1972, on a standard examination appropriate and adequate for that purpose. If the Board Superintendent shall specify the National Teachers Examination for this purpose, the required minimum score shall not be lower than that which the Board was required on November 30, 1972. The Board Superintendent shall not issue provisional certificates for principals.

The Board Superintendent shall issue a one-year provisional assistant principal's certificate to an employee of a local board only if: (i) the local board determines there is a shortage of persons who hold or are qualified to hold a principal's certificate and the employee enrolls in an approved program leading to a masters degree in school administration before the provisional certificate expires; or (ii) the employee is enrolled in an approved masters in school administration program and is participating in the required internship under the masters program. The Board Superintendent shall extend the provisional certificate for a total of no more than two additional years while the employee is completing the program.

(c1)      It is the policy of the State of North Carolina to maintain the highest quality principal and assistant principal education programs in order to enhance the competence of professional personnel certified in North Carolina. To ensure that principal and assistant principal preparation programs are upgraded to reflect a more rigorous course of study, the State Board of Education shall submit to the General Assembly not later than March 1, 1992, a plan to promote this policy. In developing this plan, the State Board shall consider (i) requiring these programs to include additional preparation for site-based decision making and for the additional autonomy being granted to local school units, (ii) enhancing program entrance requirements to include assessment of an applicant's ability to complete the program and to perform as a principal, and (iii) enhancing the overall content of the programs.

The State Board of Education, Department of Public Instruction, as lead agency in coordination and cooperation with the University Board of Governors and such other public and private agencies as are necessary, shall refine the several certification requirements, standards for approval of institutions of principal and assistant principal education, standards for institution-based innovative and experimental programs, and standards for improved efficiencies in the administration of the approved programs.

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(e)        It shall be unlawful for any board of education to employ or keep in service any principal or supervisor who neither holds nor is qualified to hold a certificate in compliance with the provision of the law or in accordance with the regulations of the State Board of Education. Superintendent of Public Instruction.

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(h)        All principals and supervisors employed in the public schools of the State or in schools receiving public funds, shall be required either to hold or be qualified to hold a certificate in compliance with the provision of the law or in accordance with the regulations of the State Board of Education. Superintendent of Public Instruction."

SECTION 161.  G.S. 115C-285(a) reads as rewritten:

"(a)       Principals and supervisors shall be paid promptly when their salaries are due provided the legal requirements for their employment and service have been met. All principals and supervisors employed by any local school administrative unit who are to be paid from local funds shall be paid promptly as provided by law and as state-allotted principals and supervisors are paid.

Principals and supervisors paid from State funds shall be paid as follows:

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(2)        Supervisors and classified principals paid on an hourly or other basis whether paid from State or from local funds may accumulate annual vacation leave days as follows: annual leave may be accumulated without any applicable maximum until June 30 of each year. On June 30 of each year, any supervisor or principals with more than 30 days of accumulated leave shall have the excess accumulation converted to sick leave so that only 30 days are carried forward to July 1 of the same year. All vacation leave taken by the employee will be upon the authorization of his immediate supervisor and under policies established by the local board of education. An employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 240 hours or 30 days when separated from service due to resignation, dismissal, reduction in force, death, or service retirement. Upon separation from service due to service retirement, any annual vacation leave over 30 days will convert to sick leave and may be used for creditable service at retirement in accordance with G.S. 135-4(e). If the last day of terminal leave falls on the last workday in the month, payment shall be made for the remaining nonworkdays in that month. Employees retiring on disability retirement may exhaust annual leave rather than be paid in a lump sum. The provisions of this subdivision shall be accomplished without additional State and local funds being appropriated for this purpose. The State Board of Education Superintendent of Public Instruction shall adopt rules and regulations for the administration of this subdivision.

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(6)        The State Board of Education, Superintendent of Public Instruction, in fixing the State standard salary schedule of principals as authorized by law, shall provide that principals who entered the armed or auxiliary forces of the United States after September 16, 1940, and who left their positions for such service, shall be allowed experience increments for the period of such service as though the same had not been interrupted thereby, in the event such persons return to the position of teachers, principals or superintendents in the public schools of the State after having been honorably discharged from the armed or auxiliary forces of the United States.

(7)        All persons employed as principals in the schools and institutions listed in subsection (p) of G.S. 115C-325 shall be compensated at the same rate as are teachers in the public schools in accordance with the salary schedule adopted by the State Board of Education. Superintendent of Public Instruction.

…."

SECTION 162.  G.S. 115C-286.1 reads as rewritten:

"§ 115C-286.1.  Evaluations of principals.

Local school administrative units shall evaluate all principals and assistant principals at least once each year. Either the superintendent or the superintendent's designee shall conduct the evaluations.

The State Board of Education Superintendent of Public Instruction shall ensure that the standards and criteria for the evaluations include the accountability measures of teacher retention, teacher support, and school climate. The State Board Superintendent shall revise its the evaluation instruments to include these measures. A local board shall use the performance standards and criteria adopted by the State Board Superintendent unless the board develops an alternative evaluation that is properly validated and that includes standards and criteria similar to those adopted by the State Board. Superintendent."

SECTION 163.  G.S. 115C-287.1(h)  reads as rewritten:

"(h)       An individual who holds a provisional assistant principal's certificate and who is employed as an assistant principal under G.S. 115C-284(c) shall be considered a school administrator for purposes of this section. Notwithstanding subsection (b) of this section, a local board may enter into one-year contracts with a school administrator who holds a provisional assistant principal's certificate. If the school administrator held career status as a teacher in the local school administrative unit prior to being employed as an assistant principal and the State Board Superintendent of Public Instruction for any reason does not extend the school administrator's provisional assistant principal's certificate, the school administrator shall retain career status as a teacher unless the school administrator voluntarily relinquished that right or is dismissed or demoted under G.S. 115C-325. Nothing in this subsection or G.S. 115C-284(c) shall be construed to require a local board to extend or renew the contract of a school administrator who holds a provisional assistant principal's certificate."

SECTION 164.  G.S. 115C-288 reads as rewritten:

"§ 115C-288.  Powers and duties of principal.

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(d)        To Conduct Fire Drills and Inspect for Fire Hazards. - It shall be the duty of the principal to conduct a fire drill during the first week after the opening of school and thereafter at least one fire drill each school month, in each building in his charge, where children are assembled. Fire drills shall include all pupils and school employees, and the use of various ways of egress to simulate evacuation of said buildings under various conditions, and such other regulations as shall be prescribed for fire safety by the Commissioner of Insurance, Insurance and the Superintendent of Public Instruction and the State Board of Education. Instruction. A copy of such regulations shall be kept posted on the bulletin board in each building.

It shall be the duty of each principal to inspect each of the buildings in his charge at least twice each month during the regular school session. This inspection shall include cafeterias, gymnasiums, boiler rooms, storage rooms, auditoriums and stage areas as well as all classrooms. This inspection shall be for the purpose of keeping the buildings safe from the accumulation of trash and other fire hazards.

It shall be the duty of the principal to file two copies of a written report once each month during the regular school session with the superintendent of his local school administrative unit, one copy of which shall be transmitted by the superintendent to the chairman of the local board of education. This report shall state the date the last fire drill was held, the time consumed in evacuating each building, that the inspection has been made as prescribed by law and such other information as is deemed necessary for fire safety by the Commissioner of Insurance, Insurance and the Superintendent of Public Instruction and the State Board of Education.Instruction.

It shall be the duty of the principal to minimize fire hazards pursuant to the provisions of G.S. 115C-525.

…

(k)        To Sign Driving Eligibility Certificates and to Notify the Division of Motor Vehicles. - In accordance with rules adopted by the State Board of Education, Superintendent of Public Instruction, the principal or the principal's designee shall do all of the following:

(1)        Sign driving eligibility certificates that meet the conditions established in G.S. 20-11.

(2)        Obtain the necessary written, irrevocable consent from parents, guardians, or emancipated juveniles, as appropriate, in order to disclose information to the Division of Motor Vehicles.

(3)        Notify the Division of Motor Vehicles when a student who holds a driving eligibility certificate no longer meets its conditions.

…."

SECTION 165.  G.S. 115C-289 reads as rewritten:

"§ 115C-289.  Assignment of principal's duties to assistant or acting principal; duties of State-funded assistant principals.

(a)        Any duty or responsibility assigned to a principal by statute, State Board of Education regulation, by regulations of the Superintendent of Public Instruction, or by the local superintendent may, with the approval of the local board of education, be assigned by the principal to an assistant principal designated by the local board of education or to an acting principal designated by a principal.

(b)        All persons employed as assistant principals in State-allotted positions, or as assistant principals in full-time positions regardless of funding source, in the public schools of the State or in schools receiving public funds, shall, in addition to other applicable requirements, be required either to hold or be qualified to hold a principal's certificate or a provisional assistant principal's certificate in compliance with applicable law and in accordance with the regulations of the State Board of Education. Superintendent of Public Instruction. It shall be unlawful for any board of education to employ or keep in service any assistant principal who neither holds nor is qualified to hold a principal's certificate or a provisional assistant principal's certificate in compliance with applicable law and in accordance with the regulations of the State Board of Education. Superintendent of Public Instruction. Persons who hold a provisional assistant principal's certificate and who are employed as assistant principals shall be employed under G.S. 115C-287.1(h).

(c)        Repealed by Session Laws 1991, c. 689, s. 200(b).

(d)        Assistant principals paid from State funds shall not have regularly assigned teaching duties."

SECTION 166.  G.S. 115C-295 reads as rewritten:

"§ 115C-295.  Minimum age and certificate prerequisites.

(a)        All teachers employed in the public schools of the State or in schools receiving public funds, shall be required either to hold or be qualified to hold a certificate in compliance with the provision of the law or in accordance with the regulations of the State Board of Education: Superintendent of Public Instruction: Provided, that nothing herein shall prevent the employment of temporary personnel under such rules as the State Board of Education Superintendent may prescribe: Provided further, that no person shall be employed to teach who is under 18 years of age.

(b)        It shall be unlawful for any board of education to employ or keep in service any teacher who neither holds nor is qualified to hold a certificate in compliance with the provision of the law or in accordance with the regulations of the State Board of Education. Superintendent of Public Instruction."

SECTION 167.  G.S. 115C-295.1 reads as rewritten:

"§ 115C-295.1.  North Carolina Professional Teaching Standards Commission.

(a)        There is created the North Carolina Professional Teaching Standards Commission (the "Commission"). The Commission shall be located administratively under the State Board of Education Department of Public Instruction but shall exercise its powers and duties independently of the State Board of Education. Superintendent of Public Instruction.

(b)        The purpose of the Commission is to establish high standards for North Carolina teachers and the teaching profession.

(c)        The Commission shall consist of the following 16 members:

(1)        The Governor shall appoint four teachers from a list of names, including the State Teacher of the Year, submitted by the State Board of Education; Superintendent of Public Instruction; one principal; one superintendent; and two representatives of schools of education, one of which is in a constituent institution of The University of North Carolina and one of which is in a private college or university.

(2)        The President Pro Tempore of the Senate shall appoint three teachers who have different areas of expertise or who teach at different grade levels; and one at-large member.

(3)        The Speaker of the House of Representatives shall appoint three teachers who have different areas of expertise or who teach at different grade levels; and one at-large member.

In making appointments, the appointing authorities are encouraged to select qualified citizens who are committed to improving the teaching profession and student achievement and who represent the racial, geographic, and gender diversity of the State. Before their appointment to this Commission, with the exception of the at-large members, the members must have been actively engaged in the profession of teaching, in the education of students in teacher education programs, or in the practice of public school administration for at least three years, at least two of which occurred in this State. The members shall serve for four-year staggered terms. Terms shall begin on September 1. Vacancies in the membership shall be filled by the original appointing authority using the same criteria as provided in this subsection.

…."

SECTION 168.  G.S. 115C-295.2 reads as rewritten:

"§ 115C-295.2.  Powers and duties of the Commission.

(a)        The North Carolina Teaching Standards Commission shall:

(1)        Develop and recommend to the State Board of Education Superintendent of Public Instruction professional standards or revisions to professional standards for North Carolina teachers.

(2)        Review the areas of teacher certification and recommend to the State Board of Education Superintendent of Public Instruction those areas that should be consolidated, redesigned, eliminated, or enhanced.

(3)        Consider current methods to assess teachers and teaching candidates, including the National Teacher Exam, the assessments of the National Board for Professional Teaching Standards, and alternative methods of assessment and recommend to the State Board of Education Superintendent of Public Instruction the implementation of rigorous and appropriate assessments for initial and continuing certification that are valid and reliable measures of professional practice.

(4)        Evaluate, develop, and recommend to the State Board Superintendent of Public Instruction a procedure for the assessment and recommendation of candidates for initial and continuing teacher certification.

For purposes of this subsection, the areas of teacher certification include initial certification, continuing certification, and certification renewal, and do not include teacher education programs.

(b)        The Commission shall submit its recommendations under subsection (a) of this section to the State Board. Superintendent of Public Instruction. The State Board Superintendent shall adopt or reject the recommendations. The State Board Superintendent shall not make any substantive changes to any recommendation that it adopts. If the State Board Superintendent rejects the recommendation, it shall state with specificity its the reasons for rejection; the Commission then may amend that recommendation and resubmit it to the State Board. Superintendent. The Board Superintendent shall adopt or reject the amended recommendation. If the State Board Superintendent fails to adopt the Commission's original and amended recommendation concerning the implementation of assessments for certification and the procedure for the assessment and recommendation of candidates for teacher certification, the State Board Superintendent may develop and adopt its his or her own plan.

(c)        The Commission shall submit an annual report by December 1 of each year to the Joint Legislative Education Oversight Committee and the State Board of Education Superintendent of Public Instruction of its activities during the preceding year, together with any recommendations and findings regarding improvement of the teaching profession. The State Board Superintendent shall submit a report by April 15, 1998, to the Joint Legislative Education Oversight Committee on the current status of assessments for certification and any changes to the procedures for assessment and recommendation of candidates for teacher certification."

SECTION 169.  G.S. 115C-296 reads as rewritten:

"§ 115C-296.  Board Superintendent of Public Instruction sets certification requirements; reports; lateral entry and mentor programs.

(a)        The State Board of Education Superintendent of Public Instruction shall have entire control of certifying all applicants for teaching positions in all public elementary and high schools of North Carolina; and it shall prescribe the rules and regulations for the renewal and extension of all certificates and shall determine and fix the salary for each grade and type of certificate which it authorizes.

The State Board of Education Superintendent may require an applicant for an initial bachelors degree certificate or graduate degree certificate to demonstrate the applicant's academic and professional preparation by achieving a prescribed minimum score on a standard examination appropriate and adequate for that purpose. The State Board of Education Superintendent shall permit an applicant to fulfill any such testing requirement before or during the applicant's second year of teaching provided the applicant took the examination at least once during the first year of teaching. The State Board of Education Superintendent shall make any required standard initial certification exam sufficiently rigorous and raise the prescribed minimum score as necessary to ensure that each applicant has adequate academic and professional preparation to teach.

(a1)      The State Board Superintendent of Public Instruction shall adopt policies that establish the minimum scores for any required standard examinations and other measures necessary to assess the qualifications of professional personnel as required under subsection (a) of this section. For purposes of this subsection, the State Board Superintendent shall not be subject to Article 2A of Chapter 150B of the General Statutes. At least 30 days prior to changing any policy adopted under this subsection, the State Board Superintendent shall provide written notice to all North Carolina schools of education and to all local boards of education. The written notice shall include the proposed revised policy.

(a2)      The State Board of Education Superintendent of Public Instruction shall impose the following schedule of fees for teacher certification and administrative changes:

(1)        Application for demographic or administrative changes to a certificate, $30.00.

(2)        Application for a duplicate certificate or for copies of documents in the certification files, $30.00.

(3)        Application for a renewal, extension, addition, upgrade, and variation to a certificate, $55.00.

(4)        Initial application for New, In-State Approved Program Graduate, $55.00.

(5)        Initial application for Out-of-State certificate, $85.00.

(6)        All other applications, $85.00.

The applicant must pay the fee at the time the application is submitted.

(b)        It is the policy of the State of North Carolina to maintain the highest quality teacher education programs and school administrator programs in order to enhance the competence of professional personnel certified in North Carolina. To the end that teacher preparation programs are upgraded to reflect a more rigorous course of study, the State Board of Education, Department of Public Instruction as lead agency in coordination and cooperation with the University Board of Governors, the Board of Community Colleges and such other public and private agencies as are necessary, shall continue to refine the several certification requirements, standards for approval of institutions of teacher education, standards for institution-based innovative and experimental programs, standards for implementing consortium-based teacher education, and standards for improved efficiencies in the administration of the approved programs. The certification program shall provide for initial certification after completion of preservice training, continuing certification after three years of teaching experience, and certificate renewal every five years thereafter, until the retirement of the teacher. The last certificate renewal received prior to retirement shall remain in effect for five years after retirement. The certification program shall also provide for lifetime certification after 50 years of teaching.

The State Board of Education, Department of Public Instruction, as lead agency in coordination with the Board of Governors of The University of North Carolina and any other public and private agencies as necessary, shall continue to raise standards for entry into teacher education programs.

The State Board of Education, Superintendent of Public Instruction, in consultation with local boards of education and the Board of Governors of The University of North Carolina, shall evaluate and modify, as necessary, the academic requirements for students preparing to teach science in middle and high schools to ensure that there is adequate preparation in issues related to science laboratory safety.

The State Board of Education, Superintendent of Public Instruction, in consultation with the Board of Governors of The University of North Carolina, shall evaluate and develop enhanced requirements for continuing certification. The new requirements shall reflect more rigorous standards for continuing certification and to the extent possible shall be aligned with quality professional development programs that reflect State priorities for improving student achievement.

The State Board of Education, Superintendent of Public Instruction, in consultation with local boards of education and the Board of Governors of The University of North Carolina, shall reevaluate and enhance the requirements for renewal of teacher certificates. The State Board Superintendent shall consider modifications in the certificate renewal achievement and to make it a mechanism for teachers to renew continually their knowledge and professional skills. The State Board shall adopt new standards for the renewal of teacher certificates by May 15, 1998.

The standards for approval of institutions of teacher education shall require that teacher education programs for all students include demonstrated competencies in (i) the identification and education of children with disabilities and (ii) positive management of student behavior and effective communication techniques for defusing and deescalating disruptive or dangerous behavior. The State Board of Education Superintendent of Public Instruction shall incorporate the criteria developed in accordance with G.S. 116-74.21 for assessing proposals under the School Administrator Training Program into its the school administrator program approval standards.

All North Carolina institutions of higher education that offer teacher education programs, masters degree programs in education, or masters degree programs in school administration shall provide performance reports to the State Board of Education. Superintendent of Public Instruction. The performance reports shall follow a common format, shall be submitted according to a plan developed by the State Board, Superintendent, and shall include the information required under the plan developed by the State Board.Superintendent.

(b1)      The State Board of Education Superintendent of Public Instruction shall develop a plan to provide a focused review of teacher education programs and the current process of accrediting these programs in order to ensure that the programs produce graduates that are well prepared to teach. The plan shall include the development and implementation of a school of education performance report for each teacher education program in North Carolina. The performance report shall include at least the following elements: (i) quality of students entering the schools of education, including the average grade point average and average score on preprofessional skills tests that assess reading, writing, math and other competencies; (ii) graduation rates; (iii) time-to-graduation rates; (iv) average scores of graduates on professional and content area examination for the purpose of certification; (v) percentage of graduates receiving initial certification; (vi) percentage of graduates hired as teachers; (vii) percentage of graduates remaining in teaching for four years; (viii) graduate satisfaction based on a common survey; and (ix) employer satisfaction based on a common survey. The performance reports shall follow a common format. The performance reports shall be submitted annually. The State Board of Education Superintendent shall develop a plan to be implemented beginning in the 1998-99 school year to reward and sanction approved teacher education programs and masters of education programs and to revoke approval of those programs based on the performance reports and other criteria established by the State Board of Education.Superintendent.

The State Board Superintendent also shall develop and implement a plan for annual performance reports for all masters degree programs in education and school administration in North Carolina. To the extent it is appropriated, the performance report shall include similar indicators to those developed for the performance report for teacher education programs. The performance reports shall follow a common format.

Both plans for performance reports also shall include a method to provide the annual performance reports to the Board of Governors of The University of North Carolina, the State Board of Education, and the boards of trustees of the independent colleges. The State Board of Education Superintendent shall review the schools of education performance reports and the performance reports for masters degree programs in education and school administration each year the performance reports are submitted. The State Board Superintendent shall submit the performance report for the 1999-2000 school year reports to the Joint Legislative Education Oversight Committee annually by December 15, 2000. Subsequent performance reports shall be submitted to the Joint Legislative Education Oversight Committee on an annual basis by October 1.

(b2)      An undergraduate student seeking a degree in teacher education must attain passing scores on a preprofessional skills test prior to admission to an approved teacher education program in a North Carolina college or university. The State Board of Education Superintendent of Public Instruction shall permit students to fulfill this requirement by achieving the prescribed minimum scores set by the State Board of Education Superintendent for the Praxis I tests or by achieving the appropriate required score, as determined by the State Board of Education, Superintendent, on the verbal and mathematics portions of the SAT. The minimum combined verbal and mathematics score set by the State Board of Education Superintendent shall be between 900 and 1,200.

(c)        It is the policy of the State of North Carolina to encourage lateral entry into the profession of teaching by skilled individuals from the private sector. To this end, before the 1985-86 school year begins, the State Board of Education shall develop criteria and procedures to accomplish the employment of such individuals as classroom teachers. Beginning with the 2006-2007 school year, the The criteria and procedures shall include preservice training in (i) the identification and education of children with disabilities and (ii) positive management of student behavior, effective communication for defusing and deescalating disruptive or dangerous behavior, and safe and appropriate use of seclusion and restraint. Skilled individuals who choose to enter the profession of teaching laterally may be granted a provisional teaching certificate for no more than three years and shall be required to obtain certification before contracting for a fourth year of service with any local administrative unit in this State.

(c1)      The State Board of Community Colleges may provide a program of study for lateral entry teachers to complete the coursework necessary to earn a teaching certificate. To this end, the State Board of Education, Superintendent of Public Instruction, in consultation with the State Board of Community Colleges, shall establish a competency-based program of study for lateral entry teachers to be implemented within the Community College System no later than May 1, 2006. This program must meet standards set by the State Board of Education. Superintendent of Public Instruction.

The State Board of Community Colleges and the State Board of Education Superintendent of Public Instruction shall jointly identify the community college courses and the teacher education program courses that are necessary and appropriate for inclusion in the community college program of study for lateral entry teachers. To the extent possible, any courses that must be completed through an approved teacher education program shall be taught on a community college campus or shall be available through distance learning.

In order to participate in the community college program of study for lateral entry teachers, an individual must hold at least a bachelors degree from a regionally accredited institution of higher education.

An individual who successfully completes this program of study and meets all other requirements of certification set by the State Board of Education Superintendent shall be recommended for a North Carolina teaching certificate.

(c2)      It is further the policy of the State of North Carolina to ensure that local boards of education can provide the strongest possible leadership for schools based upon the identified and changing needs of individual schools. To this end, before the 1994-95 school year begins, the State Board of Education Superintendent of Public Instruction shall carefully consider a lateral entry program for school administrators to ensure that local boards of education will have sufficient flexibility to attract able candidates.

(d)        The State Board Superintendent of Public Instruction shall adopt rules to establish the reasons and procedures for the suspension and revocation of certificates. The State Board Superintendent shall revoke the certificate of a teacher or school administrator if the State Board Superintendent receives notification from a local board or the Secretary of Health and Human Services that a teacher or school administrator has received an unsatisfactory or below standard rating under G.S. 115C-333(d). In addition, the State Board Superintendent may revoke or refuse to renew a teacher's certificate when:

(1)        The Board Superintendent identifies the school in which the teacher is employed as low-performing under G.S. 115C-105.37 or G.S. 143B-146.5; and

(2)        The State Board Superintendent shall automatically revoke the certificate of a teacher or school administrator without the right to a hearing upon receiving verification of the identity of the teacher or school administrator together with a certified copy of a criminal record showing that the teacher or school administrator has entered a plea of guilty or nolo contendere to or has been finally convicted of any of the following crimes: Murder in the first or second degree, G.S. 14-17; Conspiracy or solicitation to commit murder, G.S. 14-18.1; Rape or sexual offense as defined in Article 7A of Chapter 14 of the General Statutes. Felonious assault with deadly weapon with intent to kill or inflicting serious injury, G.S. 14-32; Kidnapping, G.S. 14-39; Abduction of children, G.S. 14-41; Crime against nature, G.S. 14-177; Incest, G.S. 14-178 or G.S. 14-179; Employing or permitting minor to assist in offense against public morality and decency, G.S. 14-190.6; Dissemination to minors under the age of 16 years, G.S. 14-190.7; Dissemination to minors under the age of 13 years, G.S. 14-190.8; Displaying material harmful to minors, G.S. 14-190.14; Disseminating harmful material to minors, G.S. 14-190.15; First degree sexual exploitation of a minor, G.S. 14-190.16; Second degree sexual exploitation of a minor, G.S. 14-190.17; Third degree sexual exploitation of a minor, G.S. 14-190.17A; Promoting prostitution of a minor, G.S. 14-190.18; Participating in prostitution of a minor, G.S. 14-190.19; Taking indecent liberties with children, G.S. 14-202.1; Solicitation of child by computer to commit an unlawful sex act, G.S. 14-202.3; Taking indecent liberties with a student, G.S. 14-202.4; Prostitution, G.S. 14-204; and child abuse under G.S. 14-318.4. The Board Superintendent shall mail notice of its his or her intent to act pursuant to this subdivision by certified mail, return receipt requested, directed to the teacher or school administrator at their last known address. The notice shall inform the teacher or school administrator that it will revoke the person's certificate unless the teacher or school administrator notifies the Board Superintendent in writing within 10 days after receipt of the notice that the defendant identified in the criminal record is not the same person as the teacher or school administrator. If the teacher or school administrator provides this written notice to the Board, Superintendent, the Board Superintendent shall not revoke the certificate unless it can establish as a fact that the defendant and the teacher or school administrator are the same person.

(3)        In addition, the State Board Superintendent may revoke or refuse to renew a teacher's certificate when:

a.         The Board Superintendent identifies the school in which the teacher is employed as low-performing under G.S. 115C-105.37 or G.S. 143B-146.5; and

b.         The assistance team assigned to that school makes the recommendation to revoke or refuse to renew the teacher's certificate for one or more reasons established by the State Board Superintendent in its the rules for certificate suspension or revocation.

The State Board Superintendent may issue subpoenas for the purpose of obtaining documents or the testimony of witnesses in connection with proceedings to suspend or revoke certificates. In addition, the Board Superintendent shall have the authority to contract with individuals who are qualified to conduct investigations in order to obtain all information needed to assist the Board Superintendent in the proper disposition of allegations of misconduct by certificated persons.

(e)        The State Board of Education Superintendent of Public Instruction shall develop a mentor program to provide ongoing support for teachers entering the profession. In developing the mentor program, the State Board Superintendent shall conduct a comprehensive study of the needs of new teachers and how those needs can be met through an orientation and mentor support program. For the purpose of helping local boards to support new teachers, the State Board Superintendent shall develop and distribute guidelines which address optimum teaching load, extracurricular duties, student assignment, and other working condition considerations. These guidelines shall provide that initially certified teachers not be assigned extracurricular activities unless they request the assignments in writing and that other noninstructional duties of these teachers be minimized. The State Board Superintendent shall develop and coordinate a mentor teacher training program. The State Board Superintendent shall develop criteria for selecting excellent, experienced, and qualified teachers to be participants in the mentor teacher training program.

(e1)      The State Board of Education Superintendent of Public Instruction shall allot funds for mentoring services to local school adminstrative administrative units based on the highest number of employees in the preceding three school years who (i) are paid with State, federal, or local funds and (ii) are either teachers paid on the first or second steps of the teacher salary schedule or instructional support personnel paid on the first step of the instructional support personnel salary schedule.

Local school administrative units shall use these funds to provide mentoring support to eligible employees in accordance with a plan approved by the State Board of Education. Superintendent. The plan shall include information on how all mentors in the local school administrative unit will be adequately trained to provide mentoring support. The State Board of Education Superintendent shall report to the Joint Legislative Education Oversight Committee prior to January 15 of each year on the use of funds for mentoring services. The report shall include, at a minimum, the impact of each unit's mentoring program on teacher retention and how all mentors in the unit are trained.

(f)         The State Board of Education, Superintendent of Public Instruction, after consultation with the Board of Governors of The University of North Carolina, shall develop a new category of teacher certificate known as the "Masters/Advanced Competencies" certificate. To receive this certificate, an applicant shall successfully complete a masters degree program that includes rigorous academic preparation in the subject area which the applicant will teach and in the skills and knowledge expected of a master teacher or the applicant shall demonstrate to the satisfaction of the State Board Superintendent that the candidate has acquired the skills and knowledge expected of a master teacher.

Persons who qualify for a "G" certificate prior to September 1, 2000, shall be awarded a "Masters/Advanced Competencies" certificate without meeting additional requirements. On and after September 1, 2000, no additional "G" certificates shall be awarded."

SECTION 170.  G.S. 115C-296.2 reads as rewritten:

"§ 115C-296.2.  National Board for Professional Teaching Standards Certification.

…

(b)        Definitions. - As used in this subsection:

(1)        A "North Carolina public school" is a school operated by a local board of education, the Department of Health and Human Services, the Department of Correction, the Department of Juvenile Justice and Delinquency Prevention or The University of North Carolina; a school affiliated with The University of North Carolina; or a charter school approved by the State Board of Education. Superintendent of Public Instruction.

(2)        A "teacher" is a person who:

a.         Either:

1.         Is certified to teach in North Carolina; or

2.         Holds a certificate or license issued by the State Board of Education Superintendent of Public Instruction that meets the professional license requirement for NBPTS certification;

b.         Is a State-paid employee of a North Carolina public school;

c.         Is paid on the teacher salary schedule; and

d.         (Effective until June 30, 2011) Fulfills one of the following:

1.         Spends at least seventy percent (70%) of his or her work time in classroom instruction, if the employee is employed as a teacher. Most of the teacher's remaining time shall be spent in one or more of the following: mentoring teachers, doing demonstration lessons for teachers, writing curricula, developing and leading staff development programs for teachers;

2.         Spends at least seventy percent (70%) of his or her work time in work within the employee's area of certification or licensure, if the employee is employed in an area of NBPTS certification other than direct classroom instruction; or

3.         Serves as a full-time mentor under subsection (e1) of this section.

d.         (Effective June 30, 2011) Spends at least seventy percent (70%) of his or her work time:

1.         In classroom instruction, if the employee is employed as a teacher. Most of the teacher's remaining time shall be spent in one or more of the following: mentoring teachers, doing demonstration lessons for teachers, writing curricula, developing and leading staff development programs for teachers; or

2.         In work within the employee's area of certification or licensure, if the employee is employed in an area of NBPTS certification other than direct classroom instruction.

(c)        Payment of the NBPTS Participation Fee; Paid Leave. - The State shall lend teachers the participation fee and shall provide up to three days of approved paid leave to all teachers participating in the NBPTS program who:

(1)        Have completed three full years of teaching in a North Carolina public school; and

(2)        Have (i) not previously received State funds for participating in any certification area in the NBPTS program, (ii) repaid any State funds previously received for the NBPTS certification process, or (iii) received a waiver of repayment from the State Board of Education. Superintendent of Public Instruction.

Teachers participating in the program shall take paid leave only with the approval of their supervisors.

…

(f)         Rules. - The State Education Assistance Authority shall adopt rules and guidelines regarding the loan and repayment of the NBPTS application fee. The State Board Superintendent shall adopt policies and guidelines to implement the remainder of this section."

SECTION 171.  G.S. 115C-296.5(e) reads as rewritten:

"(e)       The Executive Director shall submit a copy of the NCCAT annual report to the Chair of the State Board of Education Superintendent of Public Instruction at the time of issuance."

SECTION 172.  G.S. 115C-299(b) reads as rewritten:

"(b)      No person otherwise qualified shall be denied the right to receive credentials from the State Board of Education, Superintendent of Public Instruction, to receive training for the purpose of becoming a teacher, or to engage in practice teaching in any school on the grounds that such person is totally or partially blind; nor shall any local board of education refuse to employ such a person on such grounds."

SECTION 173.  G.S. 115C-301 reads as rewritten:

"§ 115C-301.  Allocation of teachers; class size.

(a)        Request for Funds. - The State Board of Education, Superintendent of Public Instruction, based upon the reports of local boards of education and such other information as the State Board Superintendent may require from local boards, shall determine for each local school administrative unit the number of teachers and other instructional personnel to be included in the State budget request.

(b)        Allocation of Positions. - The State Board of Education Superintendent of Public Instruction is authorized to adopt rules to allot instructional personnel and teachers, within funds appropriated.

…

(e)        Alternative Maximum Class Sizes. - The State Board of Education, Superintendent of Public Instruction in its the Superintendent's discretion, may set higher maximum class sizes and daily teaching loads for classes in music, physical education, and other similar subjects, so long as the effectiveness of the instructional programs in those areas is not thereby impaired.

(f)         Second Month Reports. - At the end of the second month of each school year, each local board of education, through the superintendent, shall file a report for each school within the school unit with the State Board of Education. Superintendent of Public Instruction. The report shall be filed in a format prescribed by the State Board of Education Superintendent and shall include the organization for each school, the duties of each teacher, the size of each class, the teaching load of each teacher, and such other information as the State Board Superintendent may require. As of February 1 each year, local boards of education, through the superintendent, shall report all exceptions to individual class size and daily teaching load maximums that occur at that time.

(g)        Waivers and Allotment Adjustments. - Local boards of education shall report exceptions to the State Board of Education Superintendent of Public Instruction as provided in G.S. 115C-47(10), and shall request allotment adjustments or waivers from the standards set out above. Within 45 days of receipt of reports, the State Board of Education, Superintendent within funds available, may allot additional positions or grant waivers for the excess class size or daily load.

(1)        If the exception resulted from (i) exceptional circumstances, emergencies, or acts of God, (ii) large changes in student population, (iii) organizational problems caused by remote geographic location, or (iv) classes organized for a solitary curricular area, and

(2)        If the local board cannot organizationally correct the exception.

(h)        State Board Superintendent's Rules. - The State Board of Education Superintendent of Public Instruction shall adopt rules necessary for the implementation of class size and teaching load provisions.

(i)         Penalty for Noncompliance. - If the State Board of Education Superintendent of Public Instruction determines that a local superintendent has willfully failed to comply with the requirements of this section, no State funds shall be allocated to pay the superintendent's salary for the period of time the superintendent is in noncompliance."

SECTION 174.  G.S. 115C-302.1 reads as rewritten:

"§ 115C-302.1.  Salary.

…

(b1)      The State Board of Education Superintendent of Public Instruction shall maintain the same policies related to masters pay for teachers that were in effect for the 2008-2009 fiscal year.

…

(g)        Service in Armed Forces. - The State Board of Education, Superintendent of Public Instruction, in fixing the State standard salary schedule of teachers as authorized by law, shall provide that teachers who entered the armed or auxiliary forces of the United States after September 16, 1940, and who left their positions for such service shall be allowed experience increments for the period of such service as though the same had not been interrupted thereby, in the event such persons return to the position of teachers, principals, and superintendents in the public schools of the State after having been honorably discharged from the armed or auxiliary forces of the United States.

(g1)      Payment During Military Duty. - The State Board of Education Superintendent of Public Instruction shall adopt rules relating to leaves of absence, without loss of pay or time, for periods of military training and for State or federal military duty or for special emergency management service. The rules shall apply to all public school employees, including, but not limited to, school teachers, administrators, guidance counselors, speech language pathologists, nurses, and custodians employed by local boards of education or by charter schools. The rules shall provide that (i) the State pays any salary differential to all public school employees in State-funded positions, (ii) the employing local board of education pays any pay differential to all public school employees in locally funded positions, (iii) the employing charter school pays any pay differential to all public school employees in the charter school, and (iv) the employing local board of education pays the local supplement.

…."

SECTION 175.  G.S. 115C-303(a) reads as rewritten:

"(a)       No teacher shall be placed on the payroll of a local school administrative unit unless he holds a certificate as required by law, and unless a copy of the teacher's contract has been filed with the superintendent. No teacher may be paid more than he is due under the local school salary schedule in force in the local school administrative unit. Substitute and interim teachers shall be paid under rules of the State Board of Education. Superintendent of Public Instruction."

SECTION 176.  G.S. 115C-307 reads as rewritten:

"§ 115C-307.  Duties of teachers.

(a)        To Maintain Order and Discipline. - It shall be the duty of all teachers, including student teachers, substitute teachers, voluntary teachers, and teacher assistants when given authority over some part of the school program by the principal or supervising teacher, to maintain good order and discipline in their respective schools. A teacher, student teacher, substitute teacher, voluntary teacher, or teacher assistant shall report to the principal acts of violence in school and students suspended or expelled from school as required to be reported in accordance with State Board the Superintendent of Public Instruction's policies.

…

(f)         To Discourage Nonattendance. - Teachers shall cooperate with the principal in ascertaining the cause of nonattendance of pupils that he may report all violators of the compulsory attendance law to the school social worker in accordance with rules promulgated by the State Board of Education. Superintendent of Public Instruction.

…."

SECTION 177.  G.S. 115C-309(a) reads as rewritten:

"(a)       Student Teacher and Student Teaching Defined. - A "student teacher" is any student enrolled in an institution of higher education approved by the State Board of Education Superintendent of Public Instruction for the preparation of teachers who is jointly assigned by that institution and a local board of education to student-teach under the direction and supervision of a regularly employed certified teacher.

"Student teaching" may include those duties granted to a teacher by G.S. 115C-307 and 115C-390 and any other part of the school program for which either the supervising teacher or the principal is responsible."

SECTION 178.  G.S. 115C-310 reads as rewritten:

"§ 115C-310.  Teacher assistants engaged in student teaching.

The State Board of Education Superintendent of Public Instruction shall adopt a program to facilitate the process by which teacher assistants may become teachers.

Teacher assistants who participate in this program:

(1)        Shall be enrolled in an approved teacher education program in a North Carolina institution of higher education; and

(2)        Shall be employed in a North Carolina public school.

Local school administrative units are encouraged to assign teacher assistants to a different classroom during student teaching than the classroom they are assigned to as a teacher assistant. To the extent possible, they may be assigned to another school within the same local school administrative unit.

At the discretion of the local school administrative unit, teacher assistants may continue to receive their salary and benefits while student teaching in the same local school administrative unit where they are employed as a teacher assistant.

The State Board of Education Superintendent shall consult with the Board of Governors of The University of North Carolina and the North Carolina Independent Colleges and Universities in the development of the program. Each approved teacher education program and each local school administrative unit shall administer this program beginning with the 2005-2006 academic year."

SECTION 179.  G.S. 115C-315 reads as rewritten:

"§ 115C-315.  Hiring of school personnel.

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(c)        Prerequisites for Employment. - All professional personnel employed in the public schools of the State or in schools receiving public funds shall be required either to hold or be qualified to hold a certificate in compliance with the provision of the law or in accordance with the regulations of the State Board of Education: Superintendent of Public Instruction: Provided, that nothing herein shall prevent the employment of temporary personnel under such rules as the State Board of Education Superintendent may prescribe.

(d)        Certification for Professional Positions. - The State Board of Education shall have entire control of certifying all applicants for professional positions in all public elementary and high schools of North Carolina; and it shall prescribe the rules and regulations for the renewal and extension of all certificates and shall determine and fix the salary for each grade and type of certificate which it authorizes: Provided, that the State Board of Education Superintendent of Public Instruction shall require each applicant for an initial certificate or graduate certificate to demonstrate his or her academic and professional preparation by achieving a prescribed minimum score at least equivalent to that required by the State Board of Education on November 30, 1972, on a standard examination appropriate and adequate for that purpose: Provided, further, that in the event the Board Superintendent of Public Instruction shall specify the National Teachers Examination for this purpose, the required minimum score shall not be lower than that which the State Board of Education required on November 30, 1972.

(d1)      Certification for School Nurses. - Notwithstanding any other provision of law or rule, school nurses employed in the public schools prior to July 1, 1998, shall not be required to be nationally certified to continue employment. School nurses not certified by the American Nurses' Association or the National Association of School Nurses shall continue to be paid based on the noncertified nurse salary range as established by the State Board of Education. Superintendent of Public Instruction.

(e)        Repealed by Session Laws 1989, c. 385, s. 3.

(f)         Employing Persons Not Holding Nor Qualified to Hold Certificate. - It shall be unlawful for any board of education to employ or keep in service any professional person who neither holds nor is qualified to hold a certificate in compliance with the provisions of the law or in accordance with the regulations of the State Board of Education. Superintendent of Public Instruction."

SECTION 180.  G.S. 115C-316(a) reads as rewritten:

"(a)       School officials and other employees shall be paid promptly when their salaries are due provided the legal requirements for their employment and service have been met. All school officials and other employees employed by any local school administrative unit who are to be paid from local funds shall be paid promptly as provided by law and as state-allotted school officials and other employees are paid.

Public school employees paid from State funds shall be paid as follows:

…

(2)        School Employees Paid on an Hourly or Other Basis. - Salary payments to employees other than those covered in G.S. 115C-272(b)(1), 115C-285(a)(1) and (2), 115C-302.1(b) and 115C-316(a)(1) shall be made at a time determined by each local board of education. Expenditures for the salary of these employees from State funds shall be within allocations made by the State Board of Education Superintendent of Public Instruction and in accordance with rules and regulations approved by the State Board of Education Superintendent of Public Instruction concerning allocations of State funds: Provided, that school employees employed for a term of 10 calendar months in year-round schools shall be paid in 12 equal installments: Provided further, that any individual school employee employed for a term of 10 calendar months who is not employed in a year-round school may be paid in 12 monthly installments if the employee so requests on or before the first day of the school year. Such request shall be filed in the administrative unit which employs the employee. The payment of the annual salary in 12 installments instead of 10 shall not increase or decrease said annual salary nor in any other way alter the contract between the employee and the said administrative unit. Employees may be prepaid on the set pay date for days not yet worked. An employee who fails to attend scheduled workdays or who has not worked the number of days for which the employee has been paid and who resigns or is dismissed shall repay to the local board any salary payments received for days not yet worked. An employee who has been prepaid and who continues to be employed by a local board but fails to attend scheduled workdays may be subject to dismissal or other appropriate discipline. The daily rate of pay shall equal the number of weekdays in the pay period. Included within the term of employment shall be provided for full-time employees annual vacation leave at the same rate provided for State employees, computed at one-twelfth (1/12) of the annual rate for State employees for each calendar month of employment, to be taken under policies determined by each local board of education. On a day that employees are required to report for a workday but pupils are not required to attend school due to inclement weather, an employee may elect not to report due to hazardous travel conditions and to take one of his annual vacation days or to make up the day at a time agreed upon by the employee and his immediate supervisor or principal. On a day that school is closed to employees and pupils due to inclement weather, the employee shall work on the scheduled makeup day. Included within their term of employment, each local board of education shall designate the same or an equivalent number of legal holidays occurring within the period of employment as those designated by the State Personnel Commission for State employees.

(3)        Notwithstanding any provisions of this section to the contrary no person shall be entitled to pay for any vacation day not earned by that person. The first 10 days of annual leave earned by a 10- or 11-month employee during any fiscal year period shall be scheduled to be used in the school calendar adopted by the respective local boards of education. Vacation days shall not be used for extending the term of employment of individuals. Ten- or 11-month employees may accumulate annual vacation leave days as follows: annual leave may be accumulated without any applicable maximum until June 30 of each year. On June 30 of each year, any of these employees with more than 30 days of accumulated leave shall have the excess accumulation converted to sick leave so that only 30 days are carried forward to July 1 of the same year. All vacation leave taken by these employees shall be upon the authorization of their immediate supervisor and under policies established by the local board of education. Vacation leave for instructional personnel who do not require a substitute shall not be restricted to days that students are not in attendance. An employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 240 hours or 30 days when separated from service due to resignation, dismissal, reduction in force, death or service retirement. Upon separation from service due to service retirement, any annual vacation leave over 30 days will convert to sick leave and may be used for creditable service at retirement in accordance with G.S. 135-4(e). If the last day of terminal leave falls on the last workday in the month, payment shall be made for the remaining nonworkdays in that month. Employees retiring on disability retirement may exhaust annual leave rather than be paid in a lump sum. The provisions of this subdivision shall be accomplished without additional State and local funds being appropriated for this purpose. The State Board of Education Superintendent of Public Instruction shall adopt rules and regulations for the administration of this subdivision.

(4)        Twelve-month school employees other than superintendents, supervisors and classified principals paid on an hourly or other basis whether paid from State or from local funds may accumulate annual vacation leave days as follows: annual leave may be accumulated without any applicable maximum until June 30 of each year. On June 30 of each year, any employee with more than 30 days of accumulated leave shall have the excess accumulation converted to sick leave so that only 30 days are carried forward to July 1 of the same year. All vacation leave taken by the employee will be upon the authorization of his immediate supervisor and under policies established by the local board of education. An employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 240 hours or 30 days when separated from service due to resignation, dismissal, reduction in force, death, or service retirement. Upon separation from service due to service retirement, any annual vacation leave over 30 days will convert to sick leave and may be used for creditable service at retirement in accordance with G.S. 135-4(e). If the last day of terminal leave falls on the last workday in the month, payment shall be made for the remaining nonworkdays in that month. Employees retiring on disability retirement may exhaust annual leave rather than be paid in a lump sum. The provisions of this subdivision shall be accomplished without additional State and local funds being appropriated for this purpose. The State Board of Education Superintendent of Public Instruction shall adopt rules and regulations for the administration of this subdivision.

…."

SECTION 181.  G.S. 115C-318 reads as rewritten:

"§ 115C-318.  Liability insurance for nonteaching public school personnel.

The State Board of Education Superintendent of Public Instruction shall provide funds for liability insurance for nonteaching public school personnel to the extent that such personnel's salaries are funded by the State. The insurance shall cover claims made for injury liability and property damage liability on account of an act done or an omission made in the course of the employee's duties. As provided by law or the rules and policies of the State Board of Education Superintendent or the local school administrative unit, the State Board of Education Superintendent shall comply with the State's laws in securing the insurance and shall provide it at the earliest possible date for the 1982-83 school year. Nothing in this section shall prevent the State Board Superintendent from furnishing the same liability insurance protection for nonteaching public school personnel not supported by State funds, provided that the cost of the protection shall be funded from the same source that supports the salaries of these employees."

SECTION 182.  G.S. 115C-325 reads as rewritten:

"§ 115C-325.  System of employment for public school teachers.

(a)        Definition of Terms. - As used in this section unless the context requires otherwise:

…

(4)        "Demote" means to reduce the salary of a person who is classified or paid by the State Board of Education Superintendent of Public Instruction as a classroom teacher or as a school administrator. The word "demote" does not include: (i) a suspension without pay pursuant to G.S. 115C-325(f)(1); (ii) the elimination or reduction of bonus payments, including merit-based supplements, or a systemwide modification in the amount of any applicable local supplement; or (iii) any reduction in salary that results from the elimination of a special duty, such as the duty of an athletic coach or a choral director.

…

(6)        "Teacher" means a person who holds at least a current, not provisional or expired, Class A certificate or a regular, not provisional or expired, vocational certificate issued by the Department of Public Instruction; whose major responsibility is to teach or directly supervises teaching or who is classified by the State Board of Education Superintendent of Public Instruction or is paid either as a classroom teacher or instructional support personnel; and who is employed to fill a full-time, permanent position.

…

(h1)      Case Managers; Qualifications; Training; Compensation.

(1)        Each year the State Board of Education Superintendent of Public Instruction shall select and maintain a master list of no more than 42 qualified case managers.

(2)        Persons selected by the State Board Superintendent as case managers shall be: (i) certified as a North Carolina Superior Court mediator; (ii) a member of the American Arbitration Association's roster of arbitrators and mediators; or (iii) have comparable certification in alternative dispute resolution. Case managers must complete a special training course approved by the State Board of Education.Superintendent.

(3)        The State Board of Education Superintendent shall determine the compensation for a case manager. The State Board Superintendent shall pay the case manager's compensation and reimbursement for expenses.

…

(j)         Hearing by a Case Manager. - The following provisions shall apply to a hearing conducted by the case manager.

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(2)        The hearing shall be conducted in accordance with reasonable rules and regulations adopted by the State Board of Education Superintendent of Public Instruction to govern case manager hearings.

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(j3)       Board Hearing for Certain Disciplinary Suspensions, Demotions of Career School Administrators, and for Reductions in Force. - The following procedures shall apply for a board hearing under G.S. 115C-325(e)(2), G.S. 115C-325(f2), and G.S. 115C-325(f)(2)a:

…

(2)        The hearing shall be conducted in accordance with reasonable rules adopted by the State Board of Education Superintendent of Public Instruction to govern such hearings.

…

(o)        Resignation. -

(1)        If a career employee has been recommended for dismissal under G.S. 115C-325(e)(1) and the employee chooses to resign without the written agreement of the superintendent, then:

a.         The superintendent shall report the matter to the State Board of Education. Superintendent of Public Instruction.

b.         The employee shall be deemed to have consented to (i) the placement in the employee's personnel file of the written notice of the superintendent's intention to recommend dismissal and (ii) the release of the fact that the superintendent has reported this employee to the State Board of Education Superintendent of Public Instruction to prospective employers, upon request. The provisions of G.S. 115C-321 shall not apply to the release of this particular information.

c.         The employee shall be deemed to have voluntarily surrendered his or her certificate pending an investigation by the State Board of Education Superintendent of Public Instruction in a determination whether or not to seek action against the employee's certificate. This certificate surrender shall not exceed 45 days from the date of resignation. Provided further that the cessation of the certificate surrender shall not prevent the State Board of Education Superintendent from taking any further action it deems appropriate. The State Board of Education Superintendent shall initiate investigation within five working days of the written notice from the superintendent and shall make a final decision as to whether to revoke or suspend the employee's certificate within 45 days from the date of resignation.

(2)        A teacher, career or probationary, who is not recommended for dismissal should not resign without the consent of the superintendent unless he or she has given at least 30 days' notice. If a teacher who is not recommended for dismissal does resign without giving at least 30 days' notice, the board may request that the State Board of Education Superintendent of Public Instruction revoke the teacher's certificate for the remainder of that school year. A copy of the request shall be placed in the teacher's personnel file.

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(p1)      Procedure for Dismissal of School Administrators and Teachers Employed in Low-Performing Residential Schools. -

(1)        Notwithstanding any other provision of this section or any other law, this subdivision shall govern the dismissal by the Secretary of Health and Human Services of teachers, principals, assistant principals, directors, supervisors, and other certificated personnel assigned to a residential school that the State Board Superintendent of Public Instruction has identified as low-performing and to which the State Board Superintendent has assigned an assistance team under Part 3A of Article 3 of Chapter 143B of the General Statutes. The Secretary shall dismiss a teacher, principal, assistant principal, director, supervisor, or other certificated personnel when the Secretary receives two consecutive evaluations that include written findings and recommendations regarding that person's inadequate performance from the assistance team. These findings and recommendations shall be substantial evidence of the inadequate performance of the teacher or school administrator.

The Secretary may dismiss a teacher, principal, assistant principal, director, supervisor, or other certificated personnel when:

a.         The Secretary determines that the school has failed to make satisfactory improvement after the State Board Superintendent assigned an assistance team to that school under Part 3A of Article 3 of Chapter 143B of the General Statutes; and

b.         That assistance team makes the recommendation to dismiss the teacher, principal, assistant principal, director, supervisor, or other certificated personnel for one or more grounds established in G.S. 115C-325(e)(1) for dismissal or demotion of a career employee.

Within 30 days of any dismissal under this subdivision, a teacher, principal, assistant principal, director, supervisor, or other certificated personnel may request a hearing before a panel of three members designated by the Secretary. The Secretary shall adopt procedures to ensure that due process rights are afforded to persons recommended for dismissal under this subdivision. Decisions of the panel may be appealed on the record to the Secretary, with further right of judicial review under Chapter 150B of the General Statutes.

(2)        Notwithstanding any other provision of this section or any other law, this subdivision shall govern the dismissal by the Secretary of Health and Human Services of certificated staff members who have engaged in a remediation plan under G.S. 115C-105.38A(c) but who, after one retest, fail to meet the general knowledge standard set by the State Board. Superintendent. The failure to meet the general knowledge standard after one retest shall be substantial evidence of the inadequate performance of the certified staff member.

Within 30 days of any dismissal under this subdivision, a certificated staff member may request a hearing before a panel of three members designated by the Secretary of Health and Human Services. The Secretary shall adopt procedures to ensure that due process rights are afforded to certificated staff members recommended for dismissal under this subdivision. Decisions of the panel may be appealed on the record to the Secretary, with further right of judicial review under Chapter 150B of the General Statutes.

…

(q)        Procedure for Dismissal of School Administrators and Teachers Employed in Low-Performing Schools.

(1)        Notwithstanding any other provision of this section or any other law, this subdivision governs the State Board's Superintendent of Public Instruction's  dismissal of principals assigned to low-performing schools to which the Board Superintendent has assigned an assistance team:

a.         The State Board Superintendent through its a  designee may, at any time, recommend the dismissal of any principal who is assigned to a low-performing school to which an assistance team has been assigned. The State Board Superintendent through its a designee shall recommend the dismissal of any principal when the Board Superintendent receives from the assistance team assigned to that principal's school two consecutive evaluations that include written findings and recommendations regarding the principal's inadequate performance.

b.         If the State Board Superintendent through its a designee recommends the dismissal of a principal under this subdivision, the principal shall be suspended with pay pending a hearing before a panel of three members of the State Board. Superintendent. The purpose of this hearing, which shall be held within 60 days after the principal is suspended, is to determine whether the principal shall be dismissed.

…

d.         The panel may order the dismissal of the principal if (i) it determines that the school has not made satisfactory improvement after the State Board Superintendent assigned an assistance team to that school; and (ii) the assistance team makes the recommendation to dismiss the principal for one or more grounds established in G.S. 115C-325(e)(1) for dismissal or demotion of a career employee.

e.         If the State Board Superintendent or its a designee recommends the dismissal of a principal before the assistance team assigned to the principal's school has evaluated that principal, the panel may order the dismissal of the principal if the panel determines from other available information that the low performance of the school is due to the principal's inadequate performance.

f.          In all hearings under this subdivision, the burden of proof is on the principal to establish that the factors leading to the school's low performance were not due to the principal's inadequate performance. In all hearings under sub-subdivision d. of this subdivision, the burden of proof is on the State Board Superintendent to establish that the school failed to make satisfactory improvement after an assistance team was assigned to the school and to establish one or more of the grounds established for dismissal or demotion of a career employee under G.S. 115C-325(e)(1).

…

h.         The State Board Superintendent shall adopt procedures to ensure that due process rights are afforded to principals under this subdivision. Decisions of the panel may be appealed on the record to the State Board, Superintendent, with further right of judicial review under Chapter 150B of the General Statutes.

(2)        Notwithstanding any other provision of this section or any other law, this subdivision shall govern the State Board's Superintendent's dismissal of teachers, assistant principals, directors, and supervisors assigned to schools that the State Board Superintendent has identified as low-performing and to which the State Board has assigned an assistance team under Article 8B of this Chapter. The State Board Superintendent shall dismiss a teacher, assistant principal, director, or supervisor when the State Board Superintendent receives two consecutive evaluations that include written findings and recommendations regarding that person's inadequate performance from the assistance team. These findings and recommendations shall be substantial evidence of the inadequate performance of the teacher or school administrator.

The State Board Superintendent may dismiss a teacher, assistant principal, director, or supervisor when:

a.         The State Board Superintendent determines that the school has failed to make satisfactory improvement after the State Board Superintendent assigned an assistance team to that school under G.S. 115C-105.38; and

b.         That assistance team makes the recommendation to dismiss the teacher, assistant principal, director, or supervisor for one or more grounds established in G.S. 115C-325(e)(1) for dismissal or demotion of a career teacher.

A teacher, assistant principal, director, or supervisor may request a hearing before a panel of three members of the State Board Superintendent within 30 days of any dismissal under this subdivision. The State Board Superintendent shall adopt procedures to ensure that due process rights are afforded to persons recommended for dismissal under this subdivision. Decisions of the panel may be appealed on the record to the State Board, Superintendent, with further right of judicial review under Chapter 150B of the General Statutes.

(2a)      Notwithstanding any other provision of this section or any other law, this subdivision shall govern the State Board's Superintendent's dismissal of certified staff members who have engaged in a remediation plan under G.S. 115C-105.38A(a) but who, after one retest, fail to meet the general knowledge standard set by the State Board. Superintendent. The failure to meet the general knowledge standard after one retest shall be substantial evidence of the inadequate performance of the certified staff member.

A certified staff member may request a hearing before a panel of three members of the State Board Superintendent within 30 days of any dismissal under this subdivision. The State Board Superintendent shall adopt procedures to ensure that due process rights are afforded to certified staff members recommended for dismissal under this subdivision. Decisions of the panel may be appealed on the record to the State Board, Superintendent,  with further right of judicial review under Chapter 150B of the General Statutes.

(3)        The State Board of Education Superintendent of Public Instruction or a local board may terminate the contract of a school administrator dismissed under this subsection. Nothing in this subsection shall prevent a local board from refusing to renew the contract of any person employed in a school identified as low-performing under G.S. 115C-105.37.

(4)        Neither party to a school administrator contract is entitled to damages under this subsection.

(5)        The State Board Superintendent of Public Instruction shall have the right to subpoena witnesses and documents on behalf of any party to the proceedings under this subsection."

SECTION 183.  G.S. 115C-326.5(c) reads as rewritten:

"(c)       The State Board of Education Superintendent of Public Instruction shall adopt rules to facilitate job sharing by public school employees. These rules shall provide that an employee in a job-sharing position shall receive paid legal holidays, annual vacation leave, sick leave, and personal leave on a pro rata basis. Such an employee shall also receive service credit under the Teachers' and State Employees' Retirement System as provided in G.S. 135-4(b) and insurance benefits as provided in Article 3 of Chapter 135 of the General Statutes."

SECTION 184.  G.S. 115C-332 reads as rewritten:

"§ 115C-332.  School personnel criminal history checks.

…

(e)        The local board of education, or the superintendent if designated by the local board of education, shall provide to the State Board of Education Superintendent of Public Instruction the criminal history it receives on a person who is certificated, certified, or licensed by the State Board of Education. Superintendent. The State Board of Education Superintendent shall review the criminal history and determine whether the person's certificate or license should be revoked in accordance with State laws and rules regarding revocation.

(f)         All the information received by the local board of education through the checking of the criminal history or by the State Board of Education Superintendent of Public Instruction in accordance with this section is privileged information and is not a public record but is for the exclusive use of the local board of education or the State Board of Education. Superintendent. The local board of education or the State Board of Education Superintendent may destroy the information after it is used for the purposes authorized by this section after one calendar year.

(g)        There shall be no liability for negligence on the part of a local board of education, or its employees, or the State Board of Education, Superintendent, or its the Department of Public Instruction's employees, arising from any act taken or omission by any of them in carrying out the provisions of this section. The immunity established by this subsection shall not extend to gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable. The immunity established by this subsection shall be deemed to have been waived to the extent of indemnification by insurance, indemnification under Articles 31A and 31B of Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the Tort Claims Act, as set forth in Chapter 31 of Chapter 143 of the General Statutes.

…."

SECTION 186.  G.S. 115C-333 reads as rewritten:

"§ 115C-333.  Evaluation of certified employees including certain superintendents; action plans; State board notification upon dismissal of employees.

(a)        Annual Evaluations; Low-Performing Schools. - Local school administrative units shall evaluate at least once each year all certified employees assigned to a school that has been identified as low-performing, but has not received an assistance team. The evaluation shall occur early enough during the school year to provide adequate time for the development and implementation of an action plan if one is recommended under subsection (b) of this section. If the employee is a teacher as defined under G.S. 115C-325(a)(6), either the principal, the assistant principal who supervises the teacher, or an assessment team assigned under G.S. 115C-334 shall conduct the evaluation. If the employee is a school administrator as defined under G.S. 115C-287.1(a)(3), either the superintendent or the superintendent's designee shall conduct the evaluation.

Notwithstanding this subsection or any other law, all teachers who have not attained career status shall be observed at least three times annually by the principal or the principal's designee and at least once annually by a teacher and shall be evaluated at least once annually by a principal. All other employees defined as teachers under G.S. 115C-325(a)(6) who are assigned to schools that are not designated as low-performing shall be evaluated annually unless a local board adopts rules that allow specified categories of teachers with career status to be evaluated more or less frequently. Local boards also may adopt rules requiring the annual evaluation of noncertified employees. This section shall not be construed to limit the duties and authority of an assistance team assigned to a low-performing school under G.S. 115C-105.38.

A local board shall use the performance standards and criteria adopted by the State Board Superintendent of Public Instruction unless the board develops an alternative evaluation that is properly validated and that includes standards and criteria similar to those adopted by the State Board. Superintendent. All other provisions of this section shall apply if a local board uses an evaluation other than one adopted by the State Board. Superintendent.

(b)        Action Plans. -

(1)        If a certified employee in a low-performing school receives an unsatisfactory or below standard rating on any function of the evaluation that is related to the employee's instructional duties, the individual or team that conducted the evaluation shall recommend to the superintendent that: (i) the employee receive an action plan designed to improve the employee's performance; or (ii) the superintendent recommend to the local board that the employee be dismissed or demoted. The superintendent shall determine whether to develop an action plan or to recommend a dismissal proceeding. Action plans shall be developed by the person who evaluated the employee or the employee's supervisor unless the evaluation was conducted by an assistance team or an assessment team. If the evaluation was conducted by an assistance team or an assessment team, that team shall develop the action plan in collaboration with the employee's supervisor. Action plans shall be designed to be completed within 90 instructional days or before the beginning of the next school year. The State Board Superintendent shall develop guidelines that include strategies to assist local boards in evaluating certified employees and developing effective action plans within the time allotted under this section. Local boards may adopt policies for the development and implementation of action plans or professional development plans for employees who do not require action plans under this section.

(2)        Local boards shall adopt policies to require action plans for all certified employees who receive a below standard or unsatisfactory rating on an evaluation in the event the superintendent does not recommend dismissal, demotion, or nonrenewal.

(c)        Reevaluation. - Upon completion of an action plan under subdivision (1) of subsection (b) of this section, the superintendent, the superintendent's designee, or the assessment team shall evaluate the employee a second time. If on the second evaluation the employee receives one unsatisfactory or more than one below standard rating on any function that is related to the employee's instructional duties, the superintendent shall recommend that the employee be dismissed or demoted under G.S. 115C-325. The results of the second evaluation shall constitute substantial evidence of the employee's inadequate performance.

(d)        State Board Notification. Notification of the Superintendent of Public Instruction. - If a local board dismisses an employee for any reason except a reduction in force under G.S. 115C-325(e)(1)l. it shall notify the State Board Superintendent of Public Instruction of the action, and the State Board Superintendent annually shall provide to all local boards the names of those individuals. If a local board hires one of these individuals, within 60 days the superintendent or the superintendent's designee shall observe the employee, develop an action plan to assist the employee, and submit the plan to the State Board. Superintendent. The State Board Superintendent shall review the action plan and may provide comments and suggestions to the superintendent. If on the next evaluation the employee receives an unsatisfactory or below standard rating on any function that is related to the employee's instructional duties, the local board shall notify the State Board Superintendent and the State Board Superintendent shall revoke the employee's certificate under G.S. 115C-296(d). If on the next evaluation the employee receives at least a satisfactory rating on all the functions related to the employee's instructional duties, the local board shall notify the State Board Superintendent that the employee is in good standing and the State Board Superintendent shall not continue to provide the individual's name to local boards under this subsection unless the employee is subsequently dismissed under G.S. 115C-325 except for a reduction in force.

(e)        Civil Immunity. - There shall be no liability for negligence on the part of the State Board of Education Superintendent of Public Instruction, or a local board of education, or their employees, arising from any action taken or omission by any of them in carrying out the provisions of this section. The immunity established by this subsection shall not extend to gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable. The immunity established by this subsection shall be deemed to have been waived to the extent of indemnification by insurance, indemnification under Articles 31A and 31B of Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes.

(f)         Local Board Evaluation of Certain Superintendents. - Each year the local board of education shall evaluate the superintendent employed by the local school administrative unit and report to the State Board Superintendent of Public Instruction the results of that evaluation if during that year the State Board Superintendent designated as low-performing:

(1)        One or more schools in a local school administrative unit that has no more than 10 schools.

(2)        Two or more schools in a local school administrative unit that has no more than 20 schools.

(3)        Three or more schools in a local school administrative unit that has more than 20 schools."

SECTION 187.  G.S. 115C-334 reads as rewritten:

"§ 115C-334.  Assessment teams.

The State Board Superintendent of Public Instruction shall develop guidelines for local boards to use to create assessment teams. A local board shall assign an assessment team to every low-performing school in the local school administrative unit that has not received an assistance team. Local boards shall ensure that assessment team members are trained in the proper administration of the employee evaluation used by the local school administrative unit. If service on an assessment team is an additional duty for an employee of a local board, the board may pay the employee for that additional work.

Assessment teams shall have the following duties:

(1)        Conduct evaluations of certified employees in low-performing schools;

(2)        Provide technical assistance and training to principals, assistant principals, superintendents, and superintendents' designees who conduct evaluations of certified employees;

(3)        Develop action plans for certified employees; and

(4)        Assist principals, assistant principals, superintendents, and superintendents' designees in the development and implementation of action plans."

SECTION 188.  G.S. 115C-335 reads as rewritten:

"§ 115C-335.  Development of performance standards and criteria for certified employees; training and remediation programs.

(a)        Development of Performance Standards. - The State Board, Superintendent of Public Instruction, in consultation with local boards of education, shall revise and develop uniform performance standards and criteria to be used in evaluating certified public school employees, including school administrators. These standards and criteria shall include improving student achievement, employee skills, and employee knowledge. The standards and criteria for school administrators also shall include building-level gains in student learning and effectiveness in providing for school safety and enforcing student discipline. The State Board Superintendent shall develop rules regarding the use of these standards and criteria. The State Board Superintendent also shall develop guidelines for evaluating superintendents. The guidelines shall include criteria for evaluating a superintendent's effectiveness in providing safe schools and enforcing student discipline.

(b)        Training. - The State Board, Superintendent, in collaboration with the Board of Governors of The University of North Carolina, shall develop programs designed to train principals and superintendents in the proper administration of the employee evaluations developed by the State Board. Superintendent. The Board of Governors shall use the professional development programs for public school employees that are under its authority to make this training available to all principals and superintendents at locations that are geographically convenient to local school administrative units. The programs shall include methods to determine whether an employee's performance has improved student learning, the development and implementation of appropriate action plans, the process for contract nonrenewal, and the dismissal process under G.S. 115C-325. The Board of Governors shall ensure that the subject matter of the training programs is incorporated into the masters in school administration programs offered by the constituent institutions. The State Board, Superintendent, in collaboration with the Board of Governors, also shall develop in-service programs for certified public school employees that may be included in an action plan created under G.S. 115C-333(b). The Board of Governors shall use the professional development programs for public school employees that are under its authority to make this training available at locations that are geographically convenient to local school administrative units."

SECTION 189.  G.S. 115C-336 reads as rewritten:

"§ 115C-336.  Sick leave.

(a)        All public school employees shall be permitted a minimum of five days per school term of sick leave, pursuant to rules and regulations promulgated by the State Board of Education Superintendent of Public Instruction as provided in G.S. 115C-12(8).

(b)        The State Board of Education Superintendent of Public Instruction shall adopt rules and regulations for the establishment of voluntary sick leave banks by local boards of education, from which an employee, upon exhaustion of accumulated sick leave and annual leave, when allowable, may withdraw sick leave days in the event of emergency or catastrophic illness. These rules may include, but not be limited to, (i) requirements of minimum service and minimum balance of sick leave before an employee may join the sick leave bank, (ii) enrollment periods for present employees and new hires, (iii) time limits for rejoining the sick leave bank, (iv) limitation on number of days which can be withdrawn by any employee, (v) waiting period before being eligible to withdraw sick leave, (vi) exclusion of illness or injury covered by Workers' Compensation Benefits, (vii) certification by physician attesting to member's illness or accident, (viii) administration of each sick leave bank by a Sick Leave Bank Committee to be made up of representatives of different classifications of employees, and (ix) other requirements to prevent any adverse selection by employees. The rules concerning the establishment of sick leave banks shall include provisions for notifying employees who donate sick leave to and employees who withdraw sick leave from the sick leave bank, of the State retirement credit consequences as to the donated sick leave.

(c)        The State Board of Education Superintendent of Public Instruction shall also adopt rules and regulations to authorize an employee who requires a substitute to use annual leave on days that students are in attendance if the employee has exhausted all of the employee's sick leave and if the employee's absence is due to the catastrophic illness of the employee. The employee shall not be required to pay the substitute.

(d)        The State Board of Education Superintendent of Public Instruction shall adopt rules relating to the reinstatement of unused sick leave when an employee who was employed on a 10-month contract at the time of separation returns to employment on a 10-month contract. Under these rules, the maximum period of separation after which unused sick leave is reinstated shall be three calendar months longer for school personnel employed on a 10-month contract than for school personnel employed on a 12-month contract."

SECTION 190.  G.S. 115C-337 reads as rewritten:

"§ 115C-337.  Workers' compensation for school employees.

(a)        Workers' Compensation Act Applicable to School Employees. - The provisions of the Workers' Compensation Act shall be applicable to all school employees, and the State Board of Education Superintendent of Public Instruction shall make arrangements necessary to carry out the provisions of the Workers' Compensation Act applicable to these employees paid from State school funds. Liability of the State for compensation shall be confined to school employees paid by the State from State school funds for injuries or death caused by accident arising out of and in the course of their employment in connection with the state-operated school term. The State shall be liable for this compensation on the basis of the average weekly wage of the employees as defined in the Workers' Compensation Act, to the extent of the proportionate part of each employee's salary that is paid from State funds. The State shall also be liable for workers' compensation for all school employees employed in connection with the teaching of vocational agriculture, home economics, trades and industries, and other vocational subjects, supported in part by State and federal funds, which liability shall cover the entire period of service of these employees, to the extent of the proportionate part of each employee's salary that is paid from State funds. The local school administrative units shall be liable for workers' compensation for school employees, including lunchroom employees, whose salaries or wages are paid by the local units from local or special funds. The local units may provide insurance to cover this compensation liability and to include the cost of this insurance in their annual budgets.

The provisions of this subsection shall not apply to any person, firm, or corporation making voluntary contributions to schools for any purpose, and the person, firm, or corporation shall not be liable for the payment of any sum of money under this Chapter.

(b)        Payment of Awards to School Bus Drivers Pursuant to the Workers' Compensation Act. - In the event that the Industrial Commission shall make an award pursuant to the Workers' Compensation Act against any local board of education on account of injuries to or the death of a school bus driver arising out of and in the course of his employment as such driver, the local board of education shall draw a requisition upon the State Board of Education Superintendent of Public Instruction for the amount required to pay such award. The State Board of Education Superintendent shall honor such requisition to the extent funds are available that it shall have in its hands, or subject to its control, available funds which have been or shall thereafter be appropriated by the General Assembly for the support of the school term. It shall be the duty of the local board of education to apply all funds received by it from the State Board of Education Superintendent pursuant to such requisition to the payment of such award. Neither the State nor the State Board of Education Superintendent shall be deemed the employer of such school bus driver, nor shall the State or the State Board of Education Superintendent be liable to any school bus driver or any other person for the payment of any claim, award, or judgment under the provisions of the Workers' Compensation Act or of any other law of this State for any injury or death arising out of or in the course of the operation by such driver of a public school bus. Neither the local board of education, the local school administrative unit, nor the tax levying authorities for the local school administrative unit shall be liable for the payment of any award made pursuant to the provisions of this subsection in excess of the amount paid upon such requisition by the State Board of Education, Superintendent, nor shall the local school board of education, the local school administrative unit, nor the said tax levying authorities be required to provide or carry workers' compensation insurance for such purpose."

SECTION 191.  G.S. 115C-340 reads as rewritten:

"§ 115C-340.  Health insurance.

(a)        The State Board of Education Superintendent of Public Instruction may authorize and empower any local board of education, the board of trustees of any community college, or other governing authority, within the State, to establish a voluntary payroll deduction plan for premiums for any type of group insurance, including health insurance,  established and authorized by the laws of this State.

(b)        Any employee of any local board of education, any community college, or of any educational association, may enter into a written agreement with his employer for the purpose of carrying out the provisions of this section. The State Board of Education Superintendent of Public Instruction is authorized and empowered to make and promulgate rules and regulations to carry out the purposes of this section."

SECTION 192.  G.S. 115C-341 reads as rewritten:

"§ 115C-341.  Annuity contracts.

Notwithstanding the provisions of this Chapter for the adoption of State and local salary schedules for the pay of teachers, principals, superintendents, and other school employees, local boards of education may enter into annual contracts with any employee of such board which provide for a reduction in salary below the total established compensation or salary schedule for a term of one year. The local board of education shall use the funds derived from the reduction in the salary of the employee to purchase a nonforfeitable annuity contract for the benefit of said employee. An employee who has agreed to a salary reduction for this purpose shall not have the right to receive the amount of the salary reduction in cash or in any other way except the annuity contract. Funds used by the local boards of education for the purchase of an annuity contract shall not be in lieu of any amount earned by the employee before his election for a salary reduction has become effective.

The agreement for salary reductions referred to herein shall be effected under any necessary regulations and procedures adopted by the State Board of Education Superintendent of Public Instruction and on forms prepared by the State Board of Education.Superintendent.

Notwithstanding any other provisions of this section, the amount by which the salary of any employee is reduced pursuant to this section shall be included in computing and making payroll deductions for social security and retirement system purposes, and in computing and providing matching funds for retirement system purposes.

In lieu of the annuity contracts provided for under this section, interests in custodial accounts pursuant to Section 401(f), Section 403(b)(7), and related sections of the Internal Revenue Code of 1986 as amended may be purchased for the benefit of qualified employees under this section with the funds derived from the reduction in the salaries of such employees."

SECTION 193.  G.S. 115C-341.1 reads as rewritten:

"§ 115C-341.1.  Flexible Compensation Plan.

Notwithstanding any other provisions of law relating to the salaries of employees of local boards of education, the State Board of Education Superintendent of Public Instruction is authorized to provide a plan of flexible compensation to eligible employees of local school administrative units for benefits available under Section 125 and related sections of the Internal Revenue Code of 1986 as amended. This plan shall not include those benefits provided to employees under Articles 1, 3, and 6 of Chapter 135 of the General Statutes nor any vacation leave, sick leave, or any other leave that may be carried forward from year to year by employees as a form of deferred compensation. In providing a plan of flexible compensation, the State Board Superintendent may authorize local school administrative units to enter into agreements with their employees for reductions in the salaries of employees electing to participate in the plan of flexible compensation provided by this section. Should the State Board Superintendent decide to contract with a third party to administer the terms and conditions of a plan of flexible compensation as provided by this section, it may select such a contractor only upon a thorough and completely advertised competitive procurement process."

SECTION 194.  G.S. 115C-342 reads as rewritten:

"§ 115C-342.  Group insurance and credit unions.

(a)        The State Board of Education Superintendent of Public Instruction may authorize and empower any local board of education, the board of trustees of any community college, or other governing authority, within the State, to establish a voluntary payroll deduction plan for:

(1)        Premiums for any type of group insurance established and authorized by the laws of this State.

(2)        Amounts authorized by members of the State Employees' Credit Union or any local teachers' credit unions to be deposited with such organizations.

(3)        Loans made to teachers by credit unions.

(b)        Any employee of any local board of education, any community college, or of any educational association, may enter into a written agreement with his employer for the purpose of carrying out the provisions of this section. The State Board of Education Superintendent of Public Instruction is authorized and empowered to make and promulgate rules and regulations to carry out the purposes of this section.

(c)        Any public school teacher who is a member of a credit union organized and established under Chapter 54 of the General Statutes may, by executing a written consent to the local school administrative unit by whom employed, authorize periodical payment or obligation to such credit union to be deducted from their salaries or wages, and such deductions shall be made and paid to said credit union as and when said salaries and wages are payable."

SECTION 195.  G.S. 115C-343(a) reads as rewritten:

"(a)       The State Board of Education Superintendent of Public Instruction may authorize any local school administrative school unit within the State to establish a voluntary payroll deduction plan for the purchase of United States Savings Bonds by the employees of such local school administrative unit, and to set up the necessary machinery for carrying out the purposes of this section."

SECTION 196.  G.S. 115C-358 reads as rewritten:

"§ 115C-358.  Designated state official.

For the purposes of the agreement set forth in this Article the "designated state official" for this State shall be the Superintendent of Public Instruction. He shall enter into contracts pursuant to G.S. 115C-351 only with the approval of the specific text thereof by the State Board of Education.G.S. 115C-351."

SECTION 197.  G.S. 115C-363.22 reads as rewritten:

"§ 115C-363.22.  North Carolina Teaching Fellows Commission established.

There is established the North Carolina Teaching Fellows Commission. This Commission shall exercise its powers and functions independently of the State Board of Education and the Department of Public Instruction. The Public School Forum of North Carolina, Inc., shall provide staff and office space to the Commission. Staff to the Commission are not State employees."

SECTION 198.  G.S. 115C-363.23(a)(1) reads as rewritten:

"(1)      The Chairman of the State Board of Education, Superintendent of Public Instruction or his a designee;".

SECTION 199.  G.S. 115C-363.23A(e) reads as rewritten:

"(e)       The Commission shall forgive the loan if, within seven years after graduation, the recipient teaches for four years at a North Carolina public school or at a school operated by the United States government in North Carolina. The Commission shall also forgive the loan if, within seven years after graduation, the recipient teaches for three consecutive years, unless the recipient takes an approved leave of absence, at a North Carolina public school in a local school administrative unit that, at the time the recipient accepts employment with the unit, is a low-performing school system identified in accordance with Article 6A of this Chapter or is on warning status as defined by the State Board of Education. Superintendent of Public Instruction. The Commission shall also forgive the loan if it finds that it is impossible for the recipient to teach for four years, within seven years after graduation, at a North Carolina public school or at a school operated by the United States government in North Carolina, because of the death or permanent disability of the recipient."

SECTION 200.  G.S. 115C-364(d) reads as rewritten:

"(d)      A child who has passed the fourth anniversary of the child's birth on or before April 16 may enter kindergarten if the child is presented for enrollment no later than the end of the first month of the school year and if the principal of the school finds, based on information submitted by the child's parent or guardian, that the child is gifted and that the child has the maturity to justify admission to the school. The State Board of Education Superintendent of Public Instruction shall establish guidelines for the principal to use in making this finding."

SECTION 201.  G.S. 115C-366 reads as rewritten:

"§ 115C-366.  Assignment of student to a particular school.

…

(a2)      It is the policy of the State that every child of a homeless individual and every homeless child and youth has access to a free, appropriate public education. The State Board of Education Superintendent of Public Instruction and every local board of education shall ensure compliance with the federal McKinney-Vento Homeless Education Assistance Improvements Act of 2001. A local board of education shall not charge a homeless child or youth tuition for enrollment. An unaccompanied youth or a homeless child's or youth's parent, guardian, or legal custodian may apply to the State Board of Education Superintendent of Public Instruction for a determination of whether a particular local board of education shall enroll the homeless child or youth, and this determination shall be binding on the local board of education, subject to judicial review.

…

(e)        The boards of education of adjacent local school administrative units may operate schools in adjacent units upon written agreements between the respective boards of education and approval by the county commissioners and the State Board of Education. Superintendent of Public Instruction.

(f)         This section shall not be construed to allow students to transfer from one local school administrative unit to another for athletic participation purposes in violation of eligibility requirements established by the State Board of Education Superintendent of Public Instruction and the North Carolina High School Athletic Association.

…

(h)        The following definitions apply in this section:

(1)        Abused or neglected. - A student is considered abused or neglected if there has been an adjudication of that issue. The State Board Superintendent of Public Instruction may adopt an additional definition of abuse and neglect, and that definition also shall apply to this section.

…."

SECTION 202.  G.S. 115C-375.1 reads as rewritten:

"§ 115C-375.1.  To provide some medical care to students.

It is within the scope of duty of teachers, including substitute teachers, teacher assistants, student teachers, or any other public school employee when authorized by the board of education or its designee, (i) to administer any drugs or medication prescribed by a doctor upon written request of the parents, (ii) to give emergency health care when reasonably apparent circumstances indicate that any delay would seriously worsen the physical condition or endanger the life of the pupil, and (iii) to perform any other first aid or lifesaving techniques in which the employee has been trained in a program approved by the State Board of Education. Superintendent of Public Instruction. No employee, however, shall be required to administer drugs or medication or attend lifesaving techniques programs.

Any public school employee, authorized by the board of education or its designee to act under (i), (ii), or (iii) above, shall not be liable in civil damages for any authorized act or for any omission relating to that act unless the act or omission amounts to gross negligence, wanton conduct, or intentional wrongdoing. Any person, serving in a voluntary position at the request of or with the permission or consent of the board of education or its designee, who has been given the authority by the board of education or its designee to act under (ii) above shall not be liable in civil damages for any authorized act or for any omission relating to the act unless the act amounts to gross negligence, wanton conduct, or intentional wrongdoing.

At the commencement of each school year, but before the beginning of classes, and thereafter as circumstances require, the principal of each school shall determine which persons will participate in the medical care program."

SECTION 203.  G.S. 115C-357.3 reads as rewritten:

"§ 115C-375.3.  Guidelines to support and assist students with diabetes.

Local boards of education and boards of directors of charter schools shall ensure that the guidelines adopted by the State Board of Education Superintendent of Public Instruction under G.S. 115C-12(31) are implemented in schools in which students with diabetes are enrolled. In particular, the boards shall require the implementation of the procedures set forth in those guidelines for the development and implementation of individual diabetes care plans. The boards also shall make available necessary information and staff development to teachers and school personnel in order to appropriately support and assist students with diabetes in accordance with their individual diabetes care plans. Local boards of education and boards of directors of charter schools shall report to the State Board of Education Superintendent of Public Instruction annually, on or before August 15, whether they have students with diabetes enrolled and provide information showing compliance with the guidelines adopted by the State Board of Education Superintendent of Public Instruction under G.S. 115C-12(31). These reports shall be in compliance with the federal Family Educational Rights and Privacy Act, 20 U.S.C. § 1232g."

SECTION 204.  G.S. 115C-378(c) reads as rewritten:

"(c)       The principal, superintendent, or a designee of the principal or superintendent shall have the right to excuse a child temporarily from attendance on account of sickness or other unavoidable cause that does not constitute unlawful absence as defined by the State Board of Education. Superintendent of Public Instruction. The term "school" as used in this section includes all public schools and any nonpublic schools which have teachers and curricula that are approved by the State Board of Education. Superintendent of Public Instruction."

SECTION 205.  G.S. 115C-379 reads as rewritten:

"§ 115C-379.  Method of enforcement.

It shall be the duty of the State Board of Education Superintendent of Public Instruction to formulate the rules that may be necessary for the proper enforcement of the provisions of this Part. The Board Superintendent shall prescribe (i) what shall constitute unlawful absence, (ii) what causes may constitute legitimate excuses for temporary nonattendance due to a student's physical or mental inability to attend or a student's participation in a valid educational opportunity such as service as a legislative page or a Governor's page, and (iii) under what circumstances teachers, principals, or superintendents may excuse pupils for nonattendance due to immediate demands of the farm or the home in certain seasons of the year in the several sections of the State.

The rules shall require school principals to authorize a minimum of two excused absences each academic year for religious observances required by the faith of a student or the student's parents. The rules may require that the student's parents give the principal written notice of the request for an excused absence a reasonable time prior to the religious observance. The student shall be given the opportunity to make up any tests or other work missed due to an excused absence for a religious observance.

It shall be the duty of all school officials to carry out such instructions from the State Board of Education, Superintendent, and any school official failing to carry out such instructions shall be guilty of a Class 3 misdemeanor: Provided, that the compulsory attendance law herein prescribed shall not be in force in any local school administrative unit that has a higher compulsory attendance feature than that provided herein."

SECTION 206.  G.S. 115C-381 reads as rewritten:

"§ 115C-381.  School social workers; reports; prosecutions.

The Superintendent of Public Instruction shall prepare such rules and procedures and furnish such blanks for teachers and other school officials as may be necessary for reporting such case of unlawful absence or lack of attendance to the school social worker of the respective local school administrative units. Such rules shall provide, among other things, for a notification in writing, to the person responsible for the nonattendance of any child, that the case is to be reported to the school social worker of the local school administrative unit unless the law is complied with immediately. Upon  recommendation of the superintendent, local boards of education may employ school social workers and such school social workers shall have authority to report and verify on oath the necessary criminal warrants or other documents for the prosecutions of violations of this Part: Provided, that local school administrative units shall provide in their local operating budgets for travel and necessary office expense for such school social workers as may be employed through State or local funds, or both. The State Board of Education Superintendent of Public Instruction shall determine the process for allocating school social workers to the various local school administrative units, establish their qualifications, and develop a salary schedule which shall be applicable to such personnel: Provided, that persons now employed by local boards of education as attendance counselors shall be deemed qualified as school social workers under the terms of this Part subject to the approval of said local boards of education.

The school social worker shall investigate all violators of the provisions of this Part. The reports of unlawful absence required to be made by teachers and principals to the school social worker shall, in his hands, in case of any prosecution, constitute prima facie evidence of the violation of this Part and the burden of proof shall be upon the defendant to show the lawful attendance of the child or children upon an authorized school."

SECTION 207.  G.S. 115C-39(a1) reads as rewritten:

"(a1)     Each local board of education shall report annually to the State Board of Education, Superintendent of Public Instruction, in a manner prescribed by the State Board of Education, Superintendent of Public Instruction on the number of times that corporal punishment was administered. The report shall be in compliance with the federal Family Educational Rights and Privacy Act, 20 U.S.C. § 1232g and shall include the following:

(1)        The number of students who received corporal punishment.

(2)        The number of students who received corporal punishment who were also students with disabilities and were eligible to receive special education and related services under the federal Individuals with Disabilities Education Improvement Act, 20 U.S.C. § 1400, et seq.

(3)        The grade level of the students who received corporal punishment.

(4)        The race and ethnicity of the students who received corporal punishment.

(5)        The reason for the administration of the corporal punishment for each student who received corporal punishment."

SECTION 208.  G.S. 115C-407.6 reads as rewritten:

"§ 115C-407.6.  Creation of a State Council.

The State Board of Education Superintendent of Public Instruction shall establish a State Council, as required by Article VIII of the compact. The membership of the State Council shall include, at a minimum, the Superintendent of Public Instruction, a superintendent of a local school administrative unit with a high concentration of military children, a representative from a military installation, a representative of the executive branch of government, a representative of the North Carolina School Boards Association, a representative of the North Carolina Association of School Administrators, a member appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, and a member appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives."

SECTION 209.  The title of Article 30 of Chapter 115C of the General Statutes reads as rewritten:

"Article 30

Financial Powers of the State Board of Education. Superintendent of Public Instruction."

SECTION 210.  G.S. 115C-408 reads as rewritten:

"§ 115C-408.  Funds under control of the State Board of Education. Superintendent of Public Instruction.

(a)        It is the policy of the State of North Carolina to create a public school system that graduates good citizens with the skills demanded in the marketplace, and the skills necessary to cope with contemporary society, using State, local and other funds in the most cost-effective manner. The Board Superintendent of Public Instruction shall have general supervision and administration of the educational funds provided by the State and federal governments, except those mentioned in Section 7 of Article IX of the State Constitution, and also excepting such local funds as may be provided by a county, city, or district.

…."

SECTION 211.  G.S. 115C-409 reads as rewritten:

"§ 115C-409.  Power to accept federal funds and aid.

(a)        The Board Superintendent of Public Instruction is authorized to accept, receive, use or reallocate to local school administrative units any federal funds, or aids, that may be appropriated now or hereafter by the federal government for the encouragement and improvement of any phase of the free public school program which, in the judgment of the Board, Superintendent of Public Instruction, will be beneficial to the operation of the schools. However, the Board Superintendent of Public Instruction is not authorized to accept any such funds upon any condition that the public schools of this State shall be operated contrary to any provisions of the Constitution or statutes of this State.

(b)        The State Board of Education Department of Public Instruction or any other State agency designated by the Governor shall have the power and authority to provide library resources, textbooks, and other instructional materials purchased from federal funds appropriated for the funding of the Elementary and Secondary Education Act of 1965 (Public Law 89-10,  89th Congress, HR 2362, effective April 11, 1965) or other acts of Congress for the use of children and teachers in private elementary and secondary schools in the State as required by acts of Congress and rules and regulations promulgated thereunder."

SECTION 212.  G.S. 115C-410 reads as rewritten:

"§ 115C-410.  Power to accept gifts and grants.

The Board Superintendent of Public Instruction is authorized to accept, receive, use, or reallocate to local school administrative units any gifts, donations, grants, bequests, or other forms of voluntary contributions."

SECTION 213.  G.S. 115C-411 reads as rewritten:

"§ 115C-411.  Authority to invest school funds.

The Board Superintendent of Public Instruction is authorized to direct the State Treasurer to invest in interest-bearing securities any funds which may come into its the Superintendent's possession, and which it the Superintendent deems expedient to invest, as other funds of the State are now or may be hereafter invested."

SECTION 214.  G.S. 115C-412 reads as rewritten:

"§ 115C-412.  Power to purchase at mortgage sales.

The State Board of Education Superintendent of Public Instruction is authorized to purchase at public sale any land upon which it has a mortgage or deed of trust securing the purchase price, or any part thereof, and when any land so sold and purchased by the said Board of Education Superintendent of Public Instruction is a part of a drainage district theretofore constituted, upon which said land assessments have been levied for the maintenance thereof, such assessments shall be paid by the said State Board of Education, Superintendent of Public Instruction, as if said land had been purchased or owned by an individual."

SECTION 215.  G.S. 115C-413 reads as rewritten:

"§ 115C-413.  Power to adjust debts.

The State Board of Education Superintendent of Public Instruction is hereby authorized and empowered to settle, compromise or otherwise adjust any indebtedness due it upon the purchase price of any land or property sold by it, or to cancel and surrender the notes, mortgages, trust deeds, or other evidence of indebtedness without payment, when, in the discretion of said Board, Superintendent, it appears that it is proper to do so. The Board of Education Superintendent is further authorized and empowered to sell or otherwise dispose of any such notes, mortgages, trust deeds, or other evidence of indebtedness."

SECTION 216.  G.S. 115C-414 reads as rewritten:

"§ 115C-414.  State Board Superintendent of Public Instruction as successor to powers of abolished commissions and boards.

The Board Superintendent of Public Instruction shall succeed to all the powers and trusts of the president and directors of the Literary Fund of North Carolina; and to all the powers, functions, duties, and property of all abolished commissions and boards including the State Board of Education, the State School Commission, the State Textbook Commission, the Department of Health and Human Services, and the State Board of Commercial Education, including the power to take, hold and convey property, both real and personal, to the same extent that any corporation might take, hold and convey the same under the laws of this State."

SECTION 217.  G.S. 115C-416 reads as rewritten:

"§ 115C-416.  Power to allot funds for teachers and other personnel.

The Board Superintendent of Public Instruction shall have power to provide for the enrichment and strengthening of educational opportunities for the children of the State, and when sufficient State funds are available to provide first for the allotment of such a number of teachers as to prevent the teacher loan from being too great in any school, the Board Superintendent is authorized, in its his or her discretion, to make an additional allotment of teaching personnel to local school administrative units of the State to be used either jointly or separately, as the Board Superintendent may prescribe. Such additional teaching personnel may be used in the local school administrative units as librarians, special teachers, or supervisors of instruction and for other special instructional services such as art, music, physical education, adult education, special education, or industrial arts as may be authorized and approved by the Board. Superintendent. The salary of all such personnel shall be determined in accordance with the State salary schedule adopted by the Board. Superintendent.

In addition, the Board Superintendent is authorized and empowered in its his or her discretion, to make allotments of funds for clerical assistants for classified principals and for school social workers.

The Board Superintendent is further authorized, in its his or her discretion, to allot teaching personnel to local school administrative units for experimental programs and purposes.

The Board Superintendent may also allot teaching and other positions, within funds available, to local school administrative units to allow local units to place personnel occupying those positions in private hospitals and treatment facilities for the limited purpose of providing education to students confined to those institutions. The Board Superintendent shall adopt rules to ensure that any such placements do not contribute to the profitability of private institutions and that they are otherwise in accordance with State and federal law."

SECTION 218.  G.S. 115C-417 reads as rewritten:

"§ 115C-417.  Availability of funds allocated for staff development.

Funds allocated by the State Board of Education Superintendent of Public Instruction for staff development at the local level shall become available for expenditure on July 1 of each fiscal year and shall remain available for expenditure until December 31 of the subsequent fiscal year."

SECTION 219.  G.S. 115C-426 reads as rewritten:

"§ 115C-426.  Uniform budget format.

(a)        The State Board of Education, Superintendent of Public Instruction, in cooperation with the Local Government Commission, shall cause to be prepared and promulgated a standard budget format for use by local school administrative units throughout the State.

…

(d)        The State Public School Fund shall include appropriations for the current operating expenses of the public school system from moneys made available to the local school administrative unit by the State Board of Education. Superintendent of Public Instruction.

…

(f)         The capital outlay fund shall include appropriations for:

(1)        The acquisition of real property for school purposes, including but not limited to school sites, playgrounds, athletic fields, administrative headquarters, and garages.

(2)        The acquisition, construction, reconstruction, enlargement, renovation, or replacement of buildings and other structures, including but not limited to buildings for classrooms and laboratories, physical and vocational educational purposes, libraries, auditoriums, gymnasiums, administrative offices, storage, and vehicle maintenance.

(3)        The acquisition or replacement of furniture and furnishings, instructional apparatus, data-processing equipment, business machines, and similar items of furnishings and equipment.

(4)        The acquisition of school buses as additions to the fleet.

(5)        The acquisition of activity buses and other motor vehicles.

(6)        Such other objects of expenditure as may be assigned to the capital outlay fund by the uniform budget format.

The cost of acquiring or constructing a new building, or reconstructing, enlarging, or renovating an existing building, shall include the cost of all real property and interests in real property, and all plants, works, appurtenances, structures, facilities, furnishings, machinery, and equipment necessary or useful in connection therewith; financing charges; the cost of plans, specifications, studies, reports, and surveys; legal expenses; and all other costs necessary or incidental to the construction, reconstruction, enlargement, or renovation.

No contract for the purchase of a site shall be executed nor any funds expended therefor without the approval of the board of county commissioners as to the amount to be spent for the site; and in case of a disagreement between a board of education and a board of county commissioners as to the amount to be spent for the site, the procedure provided in G.S. 115C-431 shall, insofar as the same may be applicable, be used to settle the disagreement.

Appropriations in the capital outlay fund shall be funded by revenues made available for capital outlay purposes by the State Board of Education Superintendent of Public Instruction and the board of county commissioners, supplemental taxes levied by or on behalf of the local school administrative unit pursuant to a local act or G.S. 115C-501 to 115C-511, the proceeds of the sale of capital assets, the proceeds of claims against fire and casualty insurance policies, and other sources.

…."

SECTION 220.  G.S. 115C-430 reads as rewritten:

"§ 115C-430.  Apportionment of county appropriations among local school administrative units.

If there is more than one local school administrative unit in a county, all appropriations by the county to the local current expense funds of the units, except appropriations funded by supplemental taxes levied less than countywide pursuant to a local act of G.S. 115C-501 to 115C-511, must be apportioned according to the membership of each unit. County appropriations are properly apportioned when the dollar amount obtained by dividing the amount so appropriated to each unit by the total membership of the unit is the same for each unit. The total membership of the local school administrative unit is the unit's average daily membership for the budget year to be determined by and certified to the unit and the board of county commissioners by the State Board of Education. Superintendent of Public Instruction."

SECTION 221.  G.S. 115C-430(a) reads as rewritten:

"(a)       After the board of county commissioners has made its appropriations to the local school administrative unit, or after the appeal procedure set out in G.S. 115C-431 has been concluded, the board of education shall adopt a budget resolution making appropriations for the budget year in such sums as the board may deem sufficient and proper. The budget resolution shall conform to the uniform budget format established by the State Board of Education. Superintendent of Public Instruction."

SECTION 222.  G.S. 115C-436 reads as rewritten:

"§ 115C-436.  Duties of school finance officer.

(a)        The school finance officer shall be responsible to the  superintendent for:

(1)        Keeping the accounts of the local school administrative unit in accordance with generally accepted principles of governmental accounting, the rules and regulations of the State Board of Education, Superintendent of Public Instruction, and the rules and regulations of the Local Government Commission.

…

(5)        Performing such other duties as may be assigned to him by law, by the superintendent, or by rules and regulations of the State Board of Education Superintendent of Public Instruction and the Local Government Commission.

All references in other portions of the General Statutes or local acts to school treasurers, county treasurers, or other officials performing any of the duties conferred by this section on the school finance officer shall be deemed to refer to the school finance officer.

(b)        The State Board of Education Superintendent of Public Instruction has authority to issue rules and regulations having the force of law governing procedures for the disbursement of money allocated to the local school administrative unit by or through the State. The Local Government Commission has authority to issue rules and regulations having the force of law governing procedures for the disbursement of all other moneys allocated or accruing to the local school administrative unit. The State Board of Education Superintendent of Public Instruction and the Local Government Commission may inquire into and investigate the internal control procedures of a local school administrative unit with respect to moneys under their respective jurisdictions and may require any modifications in internal control procedures which may be necessary or desirable to prevent embezzlements or mishandling of public moneys."

SECTION 223.  G.S. 115C-438 reads as rewritten:

"§ 115C-438.  Provision for disbursement of State money.

The deposit of money in the State treasury to the credit of local school administrative units shall be made in monthly installments, and additionally as necessary, at such time and in such a manner as may be most convenient for the operation of the public school system. Before an installment is credited, the school finance officer shall certify to the State Board of Education Superintendent of Public Instruction the expenditures to be made by the local school administrative unit from the State Public School Fund during the month. This certification shall be filed on or before the fifth day following the end of the month preceding the period in which the expenditures will be made. The State Board of Education Superintendent of Public Instruction shall determine whether the moneys requisitioned are due the local school administrative unit, and upon determining the amount due, shall cause the requisite amount to be credited to the local school administrative unit. Upon receiving notice from the State Treasurer of the amount placed to the credit of the local school administrative unit, the finance officer may issue State warrants up to the amount so certified.

The State Board of Education Superintendent of Public Instruction may withhold money for payment of salaries for administrative officers of local school administrative units if any report required to be filed with State school authorities is more than 30 days overdue. The State Board of Education Superintendent shall withhold money for payment of salaries for the superintendent, finance officer, and all other administrative officers charged with providing payroll information pursuant to G.S. 115C-12(18), if the local school administrative unit fails to provide the payroll information to the State Board Superintendent in a timely fashion and substantially in accordance with the standards set by the State Board. Superintendent. The State Board of Education Superintendent shall also withhold money used for payment of salaries for the superintendent, transportation director, and all other administrative officers or employees charged by the local board of education or the local superintendent with implementing the Transportation Information Management System, pursuant to G.S. 115C-240(d), if the State Board Superintendent finds that a local school administrative unit is not progressing in good faith and is not using its best efforts to implement the Transportation Information Management System.

Money in the State Public School Fund and State bond moneys shall be released only on warrants drawn on the State Treasurer, signed by such local official as may be required by the State Board of Education. Superintendent."

SECTION 224.  G.S. 115C-440 reads as rewritten:

"§ 115C-440.  Accounting system.

(a)        System Required. - Each local school administrative unit shall establish and maintain an accounting system designed to show in detail its assets, liabilities, equities, revenues, and expenditures. The system shall also be designed to show appropriations and estimated revenues as established in the budget resolution as originally adopted and subsequently amended.

(b)        Basis of Accounting. - Local school administrative units shall use the modified accrual basis of accounting in recording transactions.

(c)        Encumbrance Systems. - Except as otherwise provided in this subsection, no local school administrative unit is required to record  or show encumbrances in its accounting system. The Local Government Commission, in consultation with the State Board of Education, Superintendent of Public Instruction, shall establish regulations, based on total membership of the local school administrative unit or some other appropriate criterion, setting forth which units are required to maintain an accounting system that records and shows the encumbrances outstanding against each category of expenditure appropriated in the budget resolution. Any other local school administrative unit may record and show encumbrances in its accounting system.

(d)        Commission Regulations. - The Local Government Commission, in consultation with the State Board of Education, Superintendent of Public Instruction, may prescribe rules and regulations having the force of law as to:

(1)        Features of accounting systems to be maintained by local school administrative units.

(2)        Bases of accounting, including identifying in detail the characteristics of a modified accrual basis and identifying what revenues are susceptible to accrual.

(3)        Definitions of terms not clearly defined in this Article.

These rules and regulations may be varied according to the size of the local school administrative unit, or according to any other criteria reasonably related to the purpose or complexity of the financial operations involved."

SECTION 225.  G.S. 115C-441.1 reads as rewritten:

"§ 115C-441.1.  Dependent care assistance program.

The State Board of Education Superintendent of Public Instruction is authorized to provide eligible employees of local school administrative units a program of dependent care assistance as available under Section 129 and related sections of the Internal Revenue Code of 1986, as amended. The State Board Superintendent may authorize local school administrative units to enter into annual agreements with employees who elect to participate in the program to provide for a reduction in salary. Should the State Board Superintendent decide to contract with a third party to administer the terms and conditions of a program of dependent care assistance, it may select a contractor only upon a thorough and completely competitive procurement process."

SECTION 226.  G.S. 115C-442(b) reads as rewritten:

"(b)      The State Board of Education Superintendent of Public Instruction shall provide for adequate and appropriate bonding of school finance officers and such other employees as it deems appropriate with respect to the disbursement of State funds. When it the Superintendent requires such bonds, the State Board of Education Superintendent is authorized to place the bonds and pay the premiums thereon."

SECTION 227.  G.S. 115C-447 reads as rewritten:

"§ 115C-447.  Annual independent audit.

(a)        Each local school administrative unit shall have its accounts and the accounts of individual schools therein audited as soon as possible after the close of each fiscal year by a certified public accountant or by an accountant certified by the Local Government Commission as qualified to audit local government accounts. The auditor who audits the accounts of a local school administrative unit shall also audit the accounts of its individual schools. The auditor shall be selected by and shall report directly to the board of education. The audit contract shall be in writing, shall include all its terms and conditions, and shall be submitted to the Secretary of the Local Government Commission for his approval as to form, terms and conditions. The terms and conditions of the audit contract shall include the scope of the audit, and the requirement that upon completion of the examination the auditor shall prepare a typewritten or printed report embodying financial statements and his opinion and comments relating thereto. The financial statements accompanying the auditor's report shall be prepared in conformity with generally accepted accounting principles. The auditor shall file a copy of the audit report with the Secretary of the Local Government Commission, the State Board of Education, Superintendent of Public Instruction, the board of education and the board of county commissioners, and shall submit all bills or claims for audit fees and costs to the Secretary of the Local Government Commission for his approval. It shall be unlawful for any local school administrative unit to pay or permit the payment of such bills or claims without this approval. Each officer, employee and agent of the local school administrative unit having custody of public money or responsibility for keeping records of public financial or fiscal affairs shall produce all books and records requested by the auditor and shall divulge such information relating to fiscal affairs as he may request. If any member of a board of education or any other public officer, employee or agent shall conceal, falsify, or refuse to deliver or divulge any books, records, or information, with an intent thereby to mislead the auditor or impede or interfere with the audit, he is guilty of a Class 1 misdemeanor.

The State Auditor shall have authority to prescribe the manner in which funds disbursed by administrative units by warrants on the State Treasurer shall be audited.

(b)        When the State Board of Education Superintendent of Public Instruction finds that incidents of fraud, embezzlement, theft, or management failures in a local school administrative unit make it appropriate to review the internal control procedures of the unit, the State Board of Education Superintendent shall so notify the unit. If the incidents were discovered by the firm performing the audit under subsection (a) of this section, the board of the local school administrative unit shall submit the audit together with a plan for any corrective actions relative to its internal control procedures to the State Board of Education Superintendent and the Local Government Commission for approval and shall implement the approved changes prior to the next annual audit. Where the firm preparing the audit under subsection (a) of this section identifies significant problems with internal control procedures the local school administrative unit shall submit the audit together with a plan for any corrective actions relative to its internal control procedures to the State Board of Education Superintendent and the Local Government Commission for approval and shall implement the approved changes prior to the next annual audit.

If the incidents were not discovered by the firm performing the audit under subsection (a) of this section, the State Board of Education Superintendent and the Local Government Commission shall employ an audit firm to review the internal control procedures of that local school administrative unit. Upon completion of this review, the audit firm shall report publicly to the State Board of Education, Superintendent, the Local Government Commission, and the board of the local school administrative unit. If the State Board of Education Superintendent determines that significant changes are needed in the internal control procedures of the local school administrative unit, the local board shall submit a plan of corrective actions to the State Board of Education Superintendent and the Local Government Commission for approval and shall implement the approved changes prior to the next annual audit. The local school administrative unit shall pay the cost of this audit."

SECTION 228.  G.S. 115C-450 reads as rewritten:

"§ 115C-450.  School food services.

School food services shall be included in the budget of each local school administrative unit and the State Board of Education Superintendent of Public Instruction shall provide for school food services in the uniform budget format required by G.S. 115C-426."

SECTION 229.  G.S. 115C-451 reads as rewritten:

"§ 115C-451.  Reports to State Board of Education; Superintendent of Public Instruction; failure to comply with School Budget Act.

(a)        The State Board of Education Superintendent of Public Instruction shall have authority to require local school administrative units to make such reports as it may deem advisable with respect to the financial operation of the public schools.

(b)        The State Board of Education Superintendent of Public Instruction shall be responsible for assuring that local boards of education comply with State laws and regulations regarding the budgeting, management, and expenditure of funds. When a local board of education willfully or negligently fails or refuses to comply with these laws and regulations, the State Board of Education Superintendent of Public Instruction shall issue a warning to the local board of education and direct it to take remedial action. In addition, the State Board Superintendent may suspend the flexibility given to the local board under G.S. 115C-105.21A and may require the local board to use funds during the term of suspension only for the purposes for which they were allotted or for other purposes with the specific approval from the State Board. Superintendent.

(c)        If the local board of education, after warning, persists in willfully or negligently failing or refusing to comply with these laws and regulations, the State Board of Education Superintendent of Public Instruction shall by resolution assume control of the financial affairs of the local board of education and shall appoint an administrator to exercise the powers assumed. The adoption of a resolution shall have the effect of divesting the local board of education of its powers as to the adoption of budgets, expenditure of money, and all other financial powers conferred upon the local board of education by law."

SECTION 230.  G.S. 115C-452 reads as rewritten:

"§ 115C-452.  Fines and forfeitures.

The clear proceeds of all penalties and forfeitures and of all fines collected in the General Court of Justice in each county shall be remitted by the clerk of the superior court to the county finance officer, who shall forthwith determine what portion of the total is due to each local school administrative unit in the county and remit the appropriate portion of the amount to the finance officer of each local school administrative unit. Fines and forfeitures shall be apportioned according to the projected average daily membership of  each local school administrative unit as determined by and certified to the local school administrative units and the board of county commissioners by the State Board of Education Superintendent of Public Instruction pursuant to G.S. 115C-430."

SECTION 231.  G.S. 115C-457.3 reads as rewritten:

"§ 115C-457.3.  Appropriation of moneys in the Fund.

(a)        The General Assembly shall appropriate moneys in the Civil Penalty and Forfeiture Fund in the Current Operations Appropriations Act. These appropriations shall be made to the State Public School Fund for allotment by the State Board of Education, Superintendent of Public Instruction, on behalf of the counties, to local school administrative units on a per pupil basis in accordance with Article IX, Section 7(b) of the North Carolina Constitution.

(b)        In accordance with subsection (a) of this section, the State Board of Education Superintendent of Public Instruction shall allocate these funds according to the allotted average daily membership of each local school administrative unit as determined by and certified to the local school administrative units and the board of county commissioners by the State Board Superintendent pursuant to G.S. 115C-430."

SECTION 232.  G.S. 115C-459 reads as rewritten:

"§ 115C-459.  Terms of loans.

Loans made under the provisions of this Article shall be payable in 10 installments, shall bear interest at a uniform rate determined by the State Board of Education Superintendent of Public Instruction not to exceed eight percent (8%), payable annually, and shall be evidenced by the note of the county, executed by the chairman, the clerk of the board of county commissioners, and the chairman and secretary of the local board of education, and deposited with the State Treasurer. The first installment of such loan, together with the interest on the whole amount then due, shall be paid by the local board on the tenth day of February after the tenth day of August subsequent to the making of such loan, and the remaining installments, together with the interest, shall be paid on the tenth day of February of each subsequent year until all shall have been paid."

SECTION 233.  G.S. 115C-472.10 reads as rewritten:

"§ 115C-472.10.  Establishment of the Fund for the Reduction of Class Size in Public Schools.

(a)        There is established under the control and direction of the State Board of Education Superintendent of Public Instruction the Fund for the Reduction of Class Size in Public Schools. This fund shall be a nonreverting special revenue fund consisting of moneys credited to it under G.S. 20-81.12(b12) from the sale of special registration plates to support the public schools.

(b)        The State Board of Education Superintendent of Public Instruction shall allocate funds in the Fund for the Reduction of Class Size in Public Schools to local school administrative units to reduce class size in public schools."

SECTION 234.  G.S. 115C-489.6 reads as rewritten:

"§ 115C-489.6.  Administration; consultation; issuance of bonds.

(a)        QZAB Program. - The State Board of Education Department of Public Instruction is designated the State education agency responsible for administering the qualified zone academy bond program in North Carolina for the purposes of 26 U.S.C. § 54E. The State Board of Education Superintendent of Public Instruction shall perform all activities required to implement and carry out the qualified zone activity bond program in North Carolina. Those activities include:

(1)        Defining those areas and schools that are eligible under federal law to participate in the qualified zone academy bond program in North Carolina.

(2)        Designing an application process under which proposals may be solicited from qualified zone academies.

(3)        Determining the eligibility of an applicant to be a participating qualified zone academy.

(4)        Awarding the State's allocation of total funds among selected applicants and establishing conditions upon the usage of the allocation. These conditions must include:

a.         Requiring that the bond proceeds be used only for rehabilitating or repairing the public school facility in which the qualified zone academy is located, which may include (i) wiring and other infrastructure improvements related to providing technology and (ii) equipment related to the rehabilitation or repair, but not personal computers or similar technology equipment.

b.         Conditions designed to assure that the allocation is used in a timely manner.

(5)        Confirming that the terms of any qualified zone academy bonds issued in accordance with this program are consistent with the terms of the federal program.

(a1)      Qualified School Construction Bond Program. - The State Board of Education Department of Public Instruction is designated the State education agency responsible for administering the statewide allocation of authority to issue qualified school construction bonds under 26 U.S.C. § 54F. The State Board of Education Superintendent of Public Instruction shall perform all activities required to implement and carry out the statewide allocation for the qualified school construction bond program in North Carolina. Those activities include:

(1)        Designing an application process under which proposals may be solicited from issuers wishing to issue qualified school construction bonds pursuant to the statewide allocation.

(2)        Awarding the State's allocation of total funds among selected applicants and establishing conditions upon the usage of the allocation. These conditions may include:

a.         Requiring that the bond proceeds be used for purposes permitted under 26 U.S.C. § 54F.

b.         Conditions designed to assure that the allocation is used in a timely manner and that the allocations are made in accordance with the requirements of federal statutes, regulations, and rulings.

(3)        Confirming that the terms of any qualified school construction bonds issued in accordance with this program are consistent with the terms of the federal program.

(4)        Acting as the State entity designated to receive notice from any local school district that it will not utilize its local allocation so that the unused resource will become part of the statewide allocation. Local school districts receiving a local allocation are hereby directed to coordinate the use of such allocation with the State Board of Education Superintendent of Public Instruction so that any local allocation that will not be used by the local school district becomes eligible for use as part of the statewide allocation.

(b)        Assistance. - The Department of Public Instruction shall provide the State Board of Education any support it requires in carrying out this section.

(c)        Consultation. - In reviewing applications and awarding allocations, the State Board of Education Superintendent of Public Instruction shall consult with the Local Government Commission to determine whether a prospective issuer of qualified zone academy bonds or qualified school construction bonds is able to issue or incur marketable obligations.

(d)        Issuance of Bonds. - Any qualified zone academy bonds or qualified school construction bonds may be issued pursuant to the applicable provisions of and in compliance with the Local Government Bond Act, Article 4 of Chapter 159 of the General Statutes, or pursuant to the applicable provisions of and in compliance with G.S. 160A-20, to the extent authorized by G.S. 153A-158.1. As provided in G.S. 159-123(b), qualified zone academy bonds or qualified school construction bonds to be issued pursuant to the Local Government Bond Act may be sold by the Local Government Commission at private sale."

SECTION 235.  G.S. 115C-521 reads as rewritten:

"§ 115C-521.  Erection of school buildings.

(a)        It shall be the duty of local boards of education to provide classroom facilities adequate to meet the requirements of G.S. 115C-47(10) and 115C-301. Local boards of education shall submit their long-range plans for meeting school facility needs to the State Board of Education Superintendent of Public Instruction by January 1, 1988, and every five years thereafter. In developing these plans, local boards of education shall consider the costs and feasibility of renovating old school buildings instead of replacing them.

(b)        It shall be the duty of the boards of education of the several local school administrative school units of the State to make provisions for the public school term by providing adequate school buildings equipped with suitable school furniture and apparatus. The needs and the cost of those buildings, equipment, and apparatus, shall be presented each year when the school budget is submitted to the respective tax-levying authorities. The boards of commissioners shall be given a reasonable time to provide the funds which they, upon investigation, shall find to be necessary for providing their respective units with buildings suitably equipped, and it shall be the duty of the several boards of county commissioners to provide funds for the same.

Upon determination by a local board of education that the existing permanent school building does not have sufficient classrooms to house the pupil enrollment anticipated for the school, the local board of education may acquire and use as temporary classrooms for the operation of the school, relocatable or mobile classroom units, whether built on the lot or not, which units and method of use shall meet the approval of the School Planning Division of the State Board of Education, Department of Public Instruction, and which units shall comply with all applicable requirements of the North Carolina State Building Code and of the local building and electrical codes applicable to the area in which the school is located. These units shall also be anchored in a manner required to assure their structural safety in severe weather. The acquisition and installation of these units shall be subject in all respects to the provisions of Chapter 143 of the General Statutes. The provisions of Chapter 87, Article 1, of the General Statutes, shall not apply to persons, firms or corporations engaged in the sale or furnishing to local boards of education and the delivery and installation upon school sites of classroom trailers as a single building unit or of relocatable or mobile classrooms delivered in less than four units or sections.

(c)        The building of all new school buildings and the repairing of all old school buildings shall be under the control and direction of, and by contract with, the board of education for which the building and repairing is done. If a board of education is considering building a new school building to replace an existing school building, the board shall not invest any construction money in the new building unless it submits to the State Superintendent and the State Superintendent submits to the North Carolina Historical Commission an analysis that compares the costs and feasibility of building the new building and of renovating the existing building and that clearly indicates the desirability of building the new building. No board of education shall invest any money in any new building until it has (i) developed plans based upon a consideration of the State Board's State Superintendent's facilities guidelines, (ii) submitted these plans to the State Board Superintendent for its review and comments, and (iii) reviewed the plans based upon a consideration of the comments it receives from the State Board. State Superintendent. No local board of education shall contract for more money than is made available for the erection of a new building. However, this subsection shall not be construed so as to prevent boards of education from investing any money in buildings that are being constructed pursuant to a continuing contract of construction as provided for in G.S. 115C-441(c). All contracts for buildings shall be in writing and all buildings shall be inspected, received, and approved by the local superintendent and the architect before full payment is made therefor. Nothing in this subsection shall prohibit boards of education from repairing and altering buildings with the help of janitors and other regular employees of the board.

In the design and construction of new school buildings and in the renovation of existing school buildings that are required to be designed by an architect or engineer under G.S. 133-1.1, the local board of education shall participate in the planning and review process of the Energy Guidelines for School Design and Construction that are developed and maintained by the Department of Public Instruction and shall adopt local energy-use goals for building design and operation that take into account local conditions in an effort to reduce the impact of operation costs on local and State budgets. In the design and construction of new school facilities and in the repair and renovation of existing school facilities, the local board of education shall consider the placement and design of windows to use the climate of North Carolina for both light and ventilation in case of power shortages. A local board shall also consider the installation of solar energy systems in the school facilities whenever practicable.

In the case of any school buildings erected, repaired, or equipped with any money loaned or granted by the State to any local school administrative unit, no board of education shall invest any money until it has (i) developed plans based upon a consideration of the State Board's Superintendent's facilities guidelines, (ii) submitted these plans to the State Board Superintendent for its review and comments, and (iii) reviewed the plans based upon a consideration of the comments it receives from the State Board.Superintendent.

(c1)      No local board of education shall apply for a certificate of occupancy for any new middle or high school building until the plans for the science laboratory areas of the building have been reviewed and approved to meet accepted safety standards for school science laboratories and related preparation rooms and stockrooms. The review and approval of the plans may be done by the State Board of Education Superintendent of Public Instruction or by any other entity that is licensed or authorized by the State Board Superintendent to do so.

(d)        Local boards of education shall make no contract for the erection of any school building unless the site upon which it is located is owned in fee simple by the board: Provided, that the board of education of a local school administrative unit, with the approval of the board of county commissioners, may appropriate funds to aid in the establishment of a school facility and the operation thereof in an adjoining local school administrative unit when a written agreement between the boards of education of the administrative units involved has been reached and the same recorded in the minutes of the boards, whereby children from the administrative unit making the appropriations shall be entitled to attend the school so established.

In all cases where title to property has been vested in the trustees of a special charter district which has been abolished and has not been reorganized, title to the property shall be vested in the local board of education of the county embracing the former special charter district.

(e)        The State Board of Education Superintendent of Public Instruction shall establish within the Department of Public Instruction a central clearinghouse for access by local boards of education that may want to use a prototype design in the construction of school facilities. The State Board Superintendent shall compile necessary publications and a computer database to distribute information on prototype designs to local school administrative units. All architects and engineers registered in North Carolina may submit plans for inclusion in the computer database and these plans may be accessed by any person. The original architect of record or engineer of record shall retain ownership and liability for a prototype design. The State Board Superintendent may adopt rules it considers necessary to implement this subsection."

SECTION 236.  G.S. 115C-522(a) reads as rewritten:

"(a)       It shall be the duty of local boards of education to purchase or exchange all supplies, equipment, and materials, and these purchases shall be made in accordance with Article 8 of Chapter 143 of the General Statutes. These purchases may be made from contracts made by the Department of Administration. Title to instructional supplies, office supplies, fuel and janitorial supplies, enumerated in the current expense fund budget and purchased out of State funds, shall be taken in the name of the local board of education which shall be responsible for the custody and replacement: Provided, that no contracts shall be made by any local school administrative unit for purchases unless provision has been made in the budget of the unit to pay for the purchases, unless surplus funds are on hand to pay for the purchases, or unless the contracts are made pursuant to G.S. 115C-47(28) and G.S. 115C-528 and adequate funds are available to pay in the current fiscal year the sums obligated for the current fiscal year. The State Board of Education Superintendent of Public Instruction shall adopt rules regarding equipment standards for supplies, equipment, and materials related to student transportation. The State Board Superintendent may adopt guidelines for any commodity that needs safety features. If a commodity that needs safety features is available on statewide term contract, any guidelines adopted by the State Board Superintendent must at a minimum meet the safety standards of the statewide term contract. Compliance with Article 8 of Chapter 143 of the General Statutes is not mandatory for the purchase of published books, manuscripts, maps, pamphlets, and periodicals.

(1)        Where competition is available, local school administrative units may utilize the:

a.         E-Quote service of the NC E-Procurement system as one means of solicitation in seeking informal bids for purchases subject to the bidding requirements of G.S. 143-131; and

b.         Division of Purchase and Contract's electronic Interactive Purchasing System as one means of advertising formal bids on purchases subject to the bidding requirements of G.S. 143-129 and applicable rules regarding advertising. This sub-subdivision does not prohibit a local school administrative unit from using other methods of advertising.

(2)        In order to provide an efficient transition of purchasing procedures, the Secretary of the Department of Administration and the local school administrative units shall establish a local school administrative unit purchasing user group. The user group shall be comprised of a proportionate number of representatives from the Department of Administration and local school administrative unit purchasing and finance officers. The user group shall examine any issues that may arise between the Department of Administration and local school administrative units, including the new relationship between the Department and the local school administrative units, the appropriate exchange of information, the continued efficient use of E-Procurement, appropriate bid procedures, and any other technical assistance that may be necessary for the purchase of supplies and materials.

…."

SECTION 237.  G.S. 115C-525(b)(3) reads as rewritten:

"(b)      Inspection of Schools for Fire Hazards; Removal of Hazards. - Every public school building in the State shall be inspected a minimum of two times during the year in accordance with the following plan: Provided, that the periodic inspections herein required shall be at least 120 days apart:

…

(3)        It shall be the duty of the Commissioner of Insurance, the Superintendent of Public Instruction, and the State Board of Education Instruction to prescribe any additional rules and regulations which they may deem that are necessary in connection with such inspections and reports for the reduction of fire."

SECTION 238.  G.S. 115C-533 reads as rewritten:

"§ 115C-533.  Duty of State Board  Superintendent to operate insurance system.

The State Board Superintendent of Public Instruction shall have the duty to manage and operate a system of insurance for public school property."

SECTION 239.  G.S. 115C-535 reads as rewritten:

"§ 115C-535.  Authority and rules for organization of system.

The State Board of Education Superintendent of Public Instruction is hereby authorized, directed and empowered to establish a division to manage and operate a system of insurance for public school property. The Board Superintendent shall adopt such rules and regulations as, in its his or her discretion, may be necessary to provide all details inherent in the insurance of public school property. The Board Superintendent shall employ a director, safety inspectors, engineers and other personnel with suitable training and experience, which in its his or her opinion is necessary to insure and protect effectively public school property, and it shall fix their compensation with the approval of the Personnel Commission."

SECTION 240.  G.S. 115C-536 reads as rewritten:

"§ 115C-536.  Public School Insurance Fund; decrease of premiums when fund reaches five percent of total insurance in force.

There shall be set up in the books of the State Treasurer a fund to be known and designated as the "Public School Insurance Fund," which fund hereafter in G.S. 115C-535 to 115C-542 is referred to as "the Fund." In order to provide adequate reserves against losses which may be incurred on account of the risks insured against as provided in G.S. 115C-535 to 115C-542 and to provide payment for such losses as may be incurred therein, there is hereby appropriated to the Fund the sum of two million dollars ($2,000,000), which shall be paid from and charged to the State Literary Fund as set up and defined in this Chapter. When the reserves in the Fund shall be increased by the payment of premiums by the governing boards of local school administrative school units, or otherwise, to the extent of one million dollars ($1,000,000), there shall be transferred from the Fund back to the State Literary Fund the sum of one million dollars ($1,000,000) and when the Fund shall again be increased to the extent of another one million dollars ($1,000,000), there shall be transferred therefrom back to the State Literary Fund an additional sum of one million dollars ($1,000,000) in full reimbursement of the sum of two million dollars ($2,000,000), which is authorized to be transferred from the State Literary Fund by the provisions hereof. All funds paid over to the State Treasurer for premiums on insurance by the governing boards of local school administrative units and all money received from interest or from loans and deposits and from any other source connected with the insurance of the property hereinafter referred to shall be held by the State Treasurer in the Fund for the purpose of paying all fire, lightning, windstorm, hail and explosion losses for which the said Fund shall be liable and the expenses necessary for the proper conduct of the insurance of said property, together with such premiums for reinsurance of such part of said insurance as the State Board of Education Superintendent of Public Instruction may deem necessary to reinsure, as provided for in G.S. 115C-535 to 115C-542. The State Treasurer shall be the custodian of the Fund and shall invest its the assets in accordance with the provisions of G.S. 147-69.2 and 147-69.3.

When the Fund herein provided for reaches the sum of five percent (5%) of the total insurance in force, then annually thereafter the State Board of Education Superintendent of Public Instruction shall proportionately decrease the premiums on insurance to an amount which will be sufficient to maintain the Fund at five percent (5%) of the total insurance in force, and in the event in the judgment of the State Board of Education Superintendent of Public Instruction the income from the investments of the Fund are sufficient to maintain the same at five percent (5%) of the total insurance in force, no premium shall be charged for the ensuing year: Provided, that no building or property insured shall cease to pay premiums until five annual payments of premiums have been made whether or not through such payments the Fund shall be increased beyond five percent (5%) of the total insurance in force, unless such building or property shall cease to be insurable within the meaning of G.S. 115C-535 to 115C-542 within such five-year period."

SECTION 241.  G.S. 115C-537 reads as rewritten:

"§ 115C-537.  Insurance of property by local boards; notice of election to insure and information to be furnished; outstanding policies.

All local boards of education may insure all property within their units against the direct loss or damage by fire, lightning, windstorm, hail or explosions resulting by reason of defects in equipment in public school buildings and other public school properties in the Fund hereinbefore set up and provided for. Any property covered by an insurance policy in effect on the date when the property of a unit is insured in the Fund shall be insured by the Fund as of the expiration of the policy. Each local board shall give notice of its election to insure in the Fund at least 30 days prior to such insurance becoming effective and shall furnish to the State Board of Education Superintendent of Public Instruction a full and complete list of all outstanding fire insurance policies, giving in complete detail the name of the insurers, the amount of the insurance and expirations thereof. While the said insurance policies remain in effect, the Fund shall act as coinsurer of the properties covered by such insurance to the same extent and in the same manner as is provided for coinsurance under the provisions of the standard form of fire insurance as provided by law, and in the event of loss shall have the same rights and duties as required by participating insurance companies."

SECTION 242.  G.S. 115C-538 reads as rewritten:

"§ 115C-538.  Inspections of insured public school properties.

The State Board of Education Superintendent of Public Instruction shall provide for periodic inspections of all public school properties in the State of North Carolina insured under the provisions hereof, the said inspections for safety of buildings and particularly school buildings, against the loss or damage from fire and explosions. The inspections shall be the basis for offering such engineering advice as may be thought to be necessary to safeguard the children in the public schools from death and injury from school fires or explosions and to protect said school  properties from loss, and the local boards of education shall be required so far as possible, and reasonable, to carry out and put into effect such recommendations in respect thereto as may be made by the State Board of Education.Superintendent of Public Instruction."

SECTION 243.  G.S. 115C-539 reads as rewritten:

"§ 115C-539.  Information to be furnished prior to insuring in Fund; providing for payment of premiums.

Local boards of education shall at least 30 days before insuring in the Fund, furnish to the State Board of Education Superintendent of Public Instruction a complete and detailed list of all school buildings and contents thereof and other insurable school property, together with an estimate of the present value of the said property. Valuation for purposes of insuring in the Fund shall be reached by agreement in accordance with the procedure hereinafter set up for adjustment of losses. Local boards of education and the tax-levying authority shall be required to provide for the payment of premiums for insurance on the school properties of each local school administrative unit, respectively, to the extent of not less than seventy-five percent (75%) of the current insurable value of the said properties, including the insurance in fire insurance companies and the insurance provided by the Fund as set out herein."

SECTION 244.  G.S. 115C-540 reads as rewritten:

"§ 115C-540.  Determination and adjustment of premium rates; certificate as to insurance carried; no lapse; notice as to premiums required, and payment thereof.

The State Board of Education Superintendent of Public Instruction shall determine the annual premium rate to be charged for insurance of school properties as herein provided, which said rate shall not, however, be in excess of the rates fixed by law for insurance of such properties in effect on May 31, 1948, and such rates shall be adjusted from time to time so as to provide insurance against damage or loss resulting from fires, lightning, windstorm, hail or explosions resulting from defects in equipment in public school buildings and properties for the local school administrative units at the lowest cost possible in keeping with the payment of cost of administration of G.S. 115C-535 to 115C-542, and the creation of adequate reserves to pay losses which may be  incurred. The State Board of Education Superintendent of Public Instruction shall furnish to each local school administrative unit annually and, at such times as changes may require, a certificate showing the amount of insurance carried on each item of insurable property. The said insurance shall not lapse but shall remain in force until the local board of education requests that said insurance be canceled or until such property becomes uninsurable in the manner set out in G.S. 115C-542. From time to time the local board of education shall be notified as to the amount of the premiums required to be paid for said insurance and the amounts thereof shall be provided for in the annual budget of such schools. The tax-levying authorities shall provide by taxation or otherwise a sum sufficient to pay the required premiums thereon.

The local board of education shall within 30 days from notice thereof pay to the State Board of Education Superintendent of Public Instruction the premiums on such insurance, and in the event that there are no funds on hand at such time with which to make said payment, the same shall be paid out of the first funds available to such school board. Delayed payments shall bear interest at the rate of six percent (6%) per annum."

SECTION 245.  G.S. 115C-541 reads as rewritten:

"§ 115C-541.  Adjustment of losses; determination and report of appraisers; payment of amounts to treasurers of local school administrative units; disbursement of funds.

In the event of loss or damage by fire, lightning, windstorm, hail, or explosions resulting from defects in equipment in public school buildings and properties for the local school administrative units, the Fund shall pay the loss in the same proportion as the amount of insurance carried bore to the valuation of the property at the time it was insured, but not exceeding the amount which it would cost to repair or replace the property with material of like quality within a reasonable time after such loss, not in excess of the amount of insurance provided for said property, and not in excess of the amount of such loss which the Fund is required to pay in participation with fire insurance companies having policies of insurance in force on said properties at the time of the loss or damage, and the Fund shall not be liable for a greater proportion of any loss than the amount of insurance thereon shall bear to the whole insurance covering the property against the peril involved.

In the event of loss or damage by fire, lightning, windstorm, hail, or explosions resulting from defects in equipment in public school buildings and properties of the local school administrative units, to the property insured, when an agreement as to the extent of such loss or damage cannot be arrived at between the State Board of Education Superintendent of Public Instruction and the local officials having charge of the said property, the amount of such loss or damage shall be determined by three appraisers; one to be named by the State Board of Education, Superintendent of Public Instruction, one by the local board of education having charge of the property, and the two so appointed shall select a third, all of whom shall be disinterested persons, and qualified from experience to appraise and value such property: Provided, however, if the appraisers appointed by the State Board of Education Superintendent of Public Instruction and the local board of education shall fail for 15 days to agree upon the third appraiser, then, on request of the State Board of Education Superintendent of Public Instruction or the local board of education having charge of the property, such third appraiser shall be selected by any regular resident superior court judge of the superior court district or set of districts as defined in G.S. 7A-41.1 in which the property is located. The appraisers so named shall file their written report with the State Board of Education Superintendent and with the local board of education having such property in charge. The costs of the appraisal shall be paid by the Fund. Upon the determination of the loss by the appraisers, the State Board of Education Superintendent shall pay the amount of such loss or damage to school property in the control of the local school administrative unit to its treasurer, upon proper warrant of the State Board of Education. Superintendent. Said funds shall be paid out by the treasurer of said units, as provided by this Chapter for the disbursement of the funds of such unit."

SECTION 246.  G.S. 115C-542 reads as rewritten:

"§ 115C-542.  Maintenance of inspection and engineering service; cancellation of insurance.

The State Board of Education Superintendent of Public Instruction is authorized and empowered to maintain an inspection and engineering service deemed by it appropriate and necessary to reduce the hazards of fire in public school buildings insured in the Fund as hereinbefore provided, and to  expend for such purpose not in excess of ten percent (10%) of the annual premiums collected from the local school authorities. The State Board of Education Superintendent of Public Instruction is hereby authorized and empowered to cancel any insurance on any school property when, in its the Superintendent's opinion, because of dilapidation and depreciation such property is no longer insurable. Before cancellation, the local board of education shall be given at least 30 days notice, and in the event said property can be restored to insurable condition, the State Board of Education Superintendent may make such orders with respect to the continuance of such coverage as may be deemed proper: Provided, that the findings and results of the inspection of local school property by the agents of the Board Superintendent shall be reported to local boards of education and to the board of county commissioners of such units as carry insurance with the State 30 days before budget-making time in order that all school property shall be properly taken care of and made safe from fire hazards."

SECTION 247.  G.S. 115C-543 reads as rewritten:

"§ 115C-543.  Other property insurance.

The State Board of Education Superintendent of Public Instruction may adopt rules for providing property insurance on property insured by the Fund against all risks of direct physical loss not otherwise insured against pursuant to this Article. Losses covered by this additional insurance shall be paid out of the Fund in the same manner as fire and extended coverage losses.

Each local school administrative unit that elects to purchase this additional insurance shall pay a premium in accordance with rates fixed by the Board. Superintendent. This additional insurance shall be subject to the provisions and stipulations on policy forms approved by the State Board.Superintendent."

SECTION 248.  G.S. 115C-546.2(a) reads as rewritten:

"(a)       Of the monies credited to the Fund by the Secretary of Revenue pursuant to G.S. 115C-546.1(b), the State Board of Education Superintendent of Public Instruction may allocate up to one million dollars ($1,000,000) each year to the Department of Public Instruction. These funds shall be used by the Plant Operation Section of the School Support Division Division. These funds shall be used to assist each local school administrative unit with effective energy and environmental management, effective water management, hazardous material management, clean air quality, and engineering support for safe, effective environmental practices. The remainder of the monies in the Fund shall be allocated to the counties on a per average daily membership basis according to the average daily membership for the budget year as determined and certified by the State Board of Education. Superintendent of Public Instruction. Interest earned on funds allocated to each county shall be allocated to that county.

The Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee by April 15 of each year on the effectiveness of the program in accomplishing its purpose and on any other information requested by the Committee."

SECTION 249.  G.S. 115C-555 reads as rewritten:

"§ 115C-555.  Qualification of nonpublic schools.

The provisions of this Part shall apply to any nonpublic school which has one or more of the following characteristics:

(1)        It is accredited by the State Board of Education.Department of Public Instruction.

(2)        It is accredited by the Southern Association of Colleges and  Schools.

(3)        It is an active member of the North Carolina Association of Independent Schools.

(4)        It receives no funding from the State of North Carolina."

SECTION 250.  G.S. 115C-566(a) reads as rewritten:

"(a)       The Secretary of Administration, upon consideration of the advice of the Division of Nonpublic Education in the Department of Administration and representatives of nonpublic schools, shall adopt rules for the procedures a person who is or was enrolled in a home school, in a nonpublic school that is not accredited by the State Board of Education, Department of Public Instruction, or in an educational program found by a court, prior to July 1, 1998, to comply with the compulsory attendance law, must follow and the requirements that person must meet to obtain a driving eligibility certificate. The procedures shall provide that the person who is required under G.S. 20-11(n) to sign the driving eligibility certificate must provide the certificate if he or she determines that one of the following requirements is met:

(1)        The person seeking the certificate is eligible for the certificate under G.S. 20-11(n)(1) and is not subject to G.S. 20-11(n1).

(2)        The person seeking the certificate is eligible for the certificate under G.S. 20-11(n)(1) and G.S. 20-11(n1).

The rules shall define exemplary student behavior, define what constitutes the successful completion of a drug or alcohol treatment counseling program, and provide for an appeal to an appropriate educational entity by a person who is denied a driving eligibility certificate. The Division of Nonpublic Education also shall develop policies as to when it is appropriate to notify the Division of Motor Vehicles that a person who is or was enrolled in a home school or in a nonpublic school that is not accredited by the State Board of Education Department of Public Instruction no longer meets the requirements for a driving eligibility certificate."

SECTION 251.  G.S. 14-234(d6) is repealed.

SECTION 252.  G.S. 20-11(n1)(1)a. reads as rewritten:

"(n1)     Lose Control; Lose License.

(1)        The following definitions apply in this subsection:

a.         Applicable State entity. - The State Board of Education Superintendent of Public Instruction for public schools and charter schools, the State Board of Community Colleges for community colleges, or the Secretary of Administration for nonpublic schools and home schools."

SECTION 253.  G.S. 20-40.01(27)b. reads as rewritten:

"b.        For hire passenger vehicles. - Vehicles transporting persons for compensation. This classification shall not include vehicles operated as ambulances; vehicles operated by the owner where the costs of operation are shared by the passengers; vehicles operated pursuant to a ridesharing arrangement as defined in G.S. 136-44.21; vehicles transporting students for the public school system under contract with the State Board of EducationSuperintendent of Public Instruction or vehicles leased to the United States of America or any of its agencies on a nonprofit basis; or vehicles used for human service or volunteer transportation."

SECTION 254.  G.S. 20-88.1 reads as rewritten:

"§ 20-88.1.  Driver education.

(a)        In accordance with criteria and standards approved by the State Board of Education, the the State Superintendent of Public Instruction shall organize and administer a program of driver education to be offered at the public high schools of this State for all physically and mentally qualified persons who (i) are older than 14 years and six months, (ii) are approved by the principal of the school, pursuant to rules adopted by the State Board of Education, Superintendent of Public Instruction (iii) are enrolled in a public or private high school within the State, and (iv) have not previously enrolled in the program. The State Board of Education Superintendent of Public Instruction shall use for such purpose all funds appropriated to it for said purpose, and may use all other funds that become available for its use for said purpose.

The driver education program established pursuant to this section must include the following:

(1)        Instruction on the rights and privileges of the handicapped and the signs and symbols used to assist the handicapped relative to motor vehicles, including the "international symbol of accessibility" and other symbols and devices as provided in Article 2A of this Chapter.

(2)        At least six hours of instruction on the offense of driving while impaired and related subjects.

(3)        At least six hours of actual driving experience. To the extent practicable, this experience may include at least one hour of instruction on the techniques of defensive driving.

(b)        The State Board of Education Superintendent of Public Instruction shall adopt a salary range for driver education instructors who are public school employees and who do not hold teacher certificates.

Driver education instructors who are public school employees and who hold teacher certificates shall be paid on the teacher salary schedule. A day of employment for driver education instructors who hold teacher certificates shall be the same number of hours required of all regular classroom teachers as established by the local board of education.

(b1)      The State Board of EducationSuperintendent of Public Instruction shall adopt rules to permit local boards of education to enter contracts with public or private entities to provide a program of driver education at public high schools. All driver education instructors shall meet the requirements established by the State Board of EducationSuperintendent of Public Instruction; provided, however, driver education instructors shall not be required to hold teacher certificates.

(c)        All expenses incurred by the State in carrying out the provisions of this section shall be paid out of the Highway Fund.

(d)        The Division shall prepare a driver license handbook that explains the traffic laws of the State and shall periodically revise the handbook to reflect changes in these laws. At the request of the Department of Education, the Division shall provide free copies of the handbook to that Department for use in the program of driver education offered at public high schools."

SECTION 255.  G.S. 58-79-35 reads as rewritten:

"§ 58-79-35.  Fire prevention and Fire Prevention Day.

It is the duty of the Commissioner of Insurance, Insurance and the Superintendent of Public Instruction and the State Board of Education to provide a pamphlet containing printed instructions for properly conducting fire drills in all schools and auxiliary school buildings and the principal of every public and private school shall conduct at least one fire drill every month during the regular school session in each building in his charge where children are assembled. The fire drills shall include all children and teachers and the use of various ways of egress to assimilate evacuation of said buildings under various conditions, and such other regulations as prescribed by the Commissioner of Insurance, Insurance and the Superintendent of Public Instruction and State Board of Education.Instruction.

The Commissioner of Insurance and the Superintendent of Public Instruction shall further provide for the teaching of "Fire Prevention" in the colleges and schools of the State, and to arrange for a textbook adapted to such use. The ninth day of October of every year shall be set aside and designated as "Fire Prevention Day," and the Governor shall issue a proclamation urging the people to a proper observance of the day, and the Commissioner of Insurance shall bring the day and its observance to the attention of the officials of all organized fire departments of the State, whose duty it shall be to disseminate the materials and to arrange suitable programs to be followed in its observance."

SECTION 256.  G.S. 66-58 reads as rewritten:

"(c)       The provisions of subsection (a) shall not prohibit:

…

(11)      The sale of textbooks, library books, forms, bulletins, and instructional supplies by the State Board of Education, State Department of Public Instruction,Instruction and local school authorities."

SECTION 257.  G.S. 90-270.4(c) reads as rewritten:

"(c)       Persons certified by the State Board of EducationSuperintendent of Public Instruction as school psychologists and serving as regular salaried employees of the Department of Public Instruction or local boards of education are not required to be licensed under this Article in order to perform the duties for which they serve the Department of Public Instruction or local boards of education, and nothing in this Article shall be construed as limiting their activities, services, or titles while performing those duties for which they serve the Department of Public Instruction or local boards of education. If a person certified by the State Board of EducationSuperintendent of Public Instruction as a school psychologist and serving as a regular salaried employee of the Department of Public Instruction or a local board of education is or becomes a licensed psychologist under this Article, he or she shall be required to comply with all conditions, requirements, and obligations imposed by statute or by Board rules upon all other licensed psychologists as a condition to retaining that license. Other provisions of this Article notwithstanding, if a person certified by the State Board of EducationSuperintendent of Public Instruction  as a school psychologist and serving as a regular salaried employee of the Department of Public Instruction or a local board of education is or becomes a licensed psychological associate under this Article, he or she shall not be required to comply with the supervision requirements otherwise applicable to licensed psychological associates by Board rules or by this Article in the course of his or her regular salaried employment with the Department of Public Instruction or a local board of education, but he or she shall be required to comply with all other conditions, requirements, and obligations imposed by statute or a local board of education or by Board rules upon all other licensed psychological associates as a condition to retaining that license."

SECTION 258.  G.S. 90-294(c)(4) reads as rewritten:

"(c)       The provisions of this Article do not apply to:

…

(4)        A person who holds a valid and current credential as a speech and language pathologist or audiologist issued by the North Carolina Department of Public Instruction or who is employed by the North Carolina Schools for the Deaf and Blind, if such person practices speech and language pathology or audiology in a salaried position solely within the confines or under the jurisdiction of the Department of Public Instruction or the Department of Health and Human Services respectively. Instruction."

SECTION 259.  G.S. 90-332.1(a)(2) reads as rewritten:

"(a)       It is not the intent of this Article to regulate members of other regulated professions who do counseling in the normal course of the practice of their profession. Accordingly, this Article does not apply to:

…

(2)        Any school counselor certified by the State Board of Education Superintendent of Public Instruction while counseling within the scope of employment by a board of education or private school."

SECTION 260.  G.S. 90B-4(c) reads as rewritten:

"(c)       Nothing herein shall prohibit school social workers who are certified by the State Board of Education Superintendent of Public Instruction from practicing school social work under the title "Certified School Social Worker." Except as provided for licensed clinical social workers, nothing herein shall be construed as prohibiting social workers who are not certified by the Board from practicing social work. Except as provided herein for licensed clinical social workers, no agency, institution, board, commission, bureau, department, division, council, member of the Council of State, or officer of the legislative, executive or judicial branches of State government or counties, cities, towns, villages, other municipal corporations, political subdivisions of the State, public authorities, private corporations created by act of the General Assembly or any firm or corporation receiving State funds shall require the obtaining or holding of any certificate issued under this Chapter or the taking of an examination held pursuant to this Chapter as a requirement for obtaining or continuing in employment."

SECTION 261.  G.S. 96-8(5)p. reads as rewritten:

"(5)      "Employer" means:

…

p.         With respect to employment on and after January 1, 1978, any state and local governmental employing unit, including the State of North Carolina, a county board of education, a city board of education, the State Board of Education,Department of Public Instruction, the Board of Trustees of The University of North Carolina, the board of trustees of other institutions and agencies supported and under the control of the State, any other agency of and within the State by which a teacher or other employee is paid, and any county, incorporated city or town, the light and water board or commission of any incorporated city or town, the board of alcoholic control of any county or incorporated city or town, county and/or city airport authorities, housing authorities created and operated under and by virtue of Chapter 157 of the General Statutes, redevelopment commissions created and operated under and by virtue of Article 22, Chapter 160A of the General Statutes, county and/or city or regional libraries, county and/or city boards of health, district boards of health, any other separate, local governmental entity, jointly owned or operated governmental entities, and the Retirement System. For purposes of this Chapter, any employing unit described in this paragraph is not an employer by reason of hiring an intern."

SECTION 262.  G.S. 115D-2.1 reads as rewritten:

"§ 115D-2.1.  State Board of Community Colleges.

(g)        The State Board of Community Colleges shall meet at stated times established by the State Board, but not less frequently than 10 times a year. The State Board of Community Colleges shall also meet with the Superintendent of Public Instruction, the State Board of Education and the Board of Governors of The University of North Carolina at least once a year to discuss educational matters of mutual interest and to recommend to the General Assembly such policies as are appropriate to encourage the improvement of public education at every level in this State; these joint meetings shall be hosted by the three Boards according to the schedule set out in G.S. 115C-11(b1). Special meetings of the State Board may be set at any regular meeting or may be called by the chairman. A majority of the qualified members of the State Board shall constitute a quorum for the transaction of business."

SECTION 263.  G.S. 115D-25.3 reads as rewritten:

"§ 115D-25.3.  Voluntary shared leave.

The State Board of Community Colleges, in cooperation with the State Board of Education Superintendent of Public Instruction, and the State Personnel Commission, shall adopt rules and policies to allow any employee at a community college to share leave voluntarily with an immediate family member who is an employee of a community college, public school, or State agency; and with a coworker's immediate family member who is an employee of a community college, public school, or State agency. For the purposes of this section, the term "immediate family member" means a spouse, parent, child, brother, sister, grandparent, or grandchild. The term includes the step, half, and in-law relationships. The term "coworker" means that the employee donating the leave is employed by the same agency, department, institution, university, local school administrative unit, or community college as the employee whose immediate family member is receiving the leave."

SECTION 264.  G.S. 116-9 reads as rewritten:

"§ 116-9.  Meetings of Board of Governors.

The Board of Governors shall meet at stated times established by the Board, but not less frequently than six times a year. The Board of Governors shall also meet with the Superintendent of Public Instruction, the State Board of Education and the State Board of Community Colleges at least once a year to discuss educational matters of mutual interest and to recommend to the General Assembly such policies as are appropriate to encourage the improvement of public education at every level in this State; these joint meetings shall be hosted by the three Boards according to the schedule set out in G.S. 115C-11(b1). A quorum for the conduct of business shall consist of a majority of the members."

SECTION 265.  G.S. 116-11 reads as rewritten:

"§ 116-11.  Powers and duties generally.

The powers and duties of the Board of Governors shall include the following:

…

(10a)    The Board of Governors, the State Board of Community Colleges, and the State Board of Education, Department of Public Instruction, in consultation with private higher education institutions defined in G.S. 116-22(1), shall plan a system to provide an exchange of information among the public schools and institutions of higher education to be implemented no later than June 30, 1995. As used in this section, "institutions of higher education" shall mean public higher education institutions defined in G.S. 116-143.1(a)(3), and those private higher education institutions defined in G.S. 116-22(1) that choose to participate in the information exchange. The information shall include:

a.         The number of high school graduates who apply to, are admitted to, and enroll in institutions of higher education;

b.         College performance of high school graduates for the year immediately following high school graduation including each student's: need for remedial coursework at the institution of higher education that the student attends; performance in standard freshmen courses; and continued enrollment in a subsequent year in the same or another institution of higher education in the State;

c.         The progress of students from one institution of higher education to another; and

d.         Consistent and uniform public school course information including course code, name, and description.

The Department of Public Instruction shall generate and the local school administrative units shall use standardized transcripts in an automated format for applicants to higher education institutions. The standardized transcript shall include grade point average, class rank, end-of-course test scores, and uniform course information including course code, name, units earned toward graduation, and credits earned for admission from an institution of higher education. The grade point average and class rank shall be calculated by a standard method to be devised by the institutions of higher education.

The Board of Governors shall coordinate a joint progress report on the implementation of the system to provide an exchange of information among the public and independent colleges and universities, the community colleges, and the public schools. The report shall be made to the Joint Legislative Education Oversight Committee no later than February 15, 1993, and annually thereafter.

…

(12a)    The Board of Governors of The University of North Carolina shall implement, administer, and revise programs for meaningful professional development for professional public school employees based upon the evaluations and recommendations made by the State Board of Education Department of Public Instruction under G.S. 115C-12(26). The programs shall be aligned with State education goals and directed toward improving student academic achievement. The Board of Governors shall submit to the State Board of Education an annual report evaluating the professional development programs administered by the Board of Governors.

…

(12d)    The Board of Governors shall provide a comprehensive annual report on teacher education efforts at The University of North Carolina. The report shall include information about teacher education and recruitment, 2+2 initiatives, distance education programs focused on teacher education, and professional development programs for teachers and school administrators. The teacher education report shall be due on April 15 of each year to the Joint Legislative Education Oversight Committee and the State Board of Education. Superintendent of Public Instruction.

…."

SECTION 266.  G.S. 116-11.2 reads as rewritten:

"§ 116-11.2.  Duties regarding programs in education administration.

The Board of Governors shall direct the constituent institutions with programs in education administration to revise the programs to reflect any increased standards required for programs approved by the State Board of Education, Superintendent of Public Instruction including new requirements for school-based leadership in the public schools. The Board of Governors shall monitor the programs and devise an assessment plan for all programs leading to certification in education administration."

SECTION 267.  G.S. 116-38 reads as rewritten:

"§ 116-38.  Child development research and demonstration center.

(a)        The Chapel Hill City Board of Education is authorized to enter into long-term agreements and contracts with the University of North Carolina for the purpose of providing for the establishment and operation of a child development research and demonstration center. The Board is additionally authorized to lease or transfer title to real and personal property, including buildings and equipment, with or without compensation, to the University for this purpose.

(b)        If an elementary school meeting the requirements for accreditation established by the State Board of Education Superintendent of Public Instruction is operated in conjunction with the center such school shall receive financial support through the Chapel Hill City Board of Education from State, county, and administrative unit sources on the same basis as the other elementary schools in the Chapel Hill city administrative unit.

(c)        All personnel of the center whose salaries are paid in whole or part from funds administered by the State Board of EducationSuperintendent of Public Instruction or the Chapel Hill City Board of Education, from whatever sources derived, shall be employed only upon the mutual concurrence of the superintendent of the Chapel Hill city administrative unit and the director of the center."

SECTION 268.  G.S. 116-66 reads as rewritten:

"§ 116-66.  Powers of various boards.

The Board of Governors of the University of North Carolina and the Board of Trustees of the school shall be advised and assisted by the State Board of Education. Department of Public Instruction. Entrance requirements shall be prescribed so that the professional training offered shall be available only to those students who possess exceptional talent in the performing arts. In developing curricula the school shall utilize, pursuant to agreement with institutions of higher education or with any local administrative school unit, existing facilities and such academic nonarts courses and programs of instruction as may be needed by the students of the school, and, in the discretion of the Board of Governors, personnel may be employed jointly with any such institution or unit on a cooperative, cost-sharing basis. Curricula below the collegiate level shall be developed with the advice and approval of the State Board of Education. Superintendent of Public Instruction. The school shall confer and cooperate with the Southern Regional Education Board and with other regional and national organizations to obtain wide support and to establish the school as the center in the South for the professional training and performance of artists. The chancellor of the school shall preferably be a noted composer or dramatist."

SECTION 269.  G.S. 116-73 reads as rewritten:

"§ 116-73.  Joint committee for administration of fund; rules and regulations.

"The Scholarship Loan Fund for Prospective College Teachers" shall be the responsibility of the Board of Governors of the University of North Carolina and the State Board of Education Superintendent of Public Instruction and will be administered by them through a joint committee, "The College Scholarship Loan Committee." This Committee will operate under the following rules and regulations and under such further rules and regulations as the Board of Governors of the University of North Carolina and the State Board of Education Superintendent of Public Instruction shall jointly promulgate.

(1)        The nomination of applicants and recommendations of renewals shall be the responsibility of the College Scholarship Loan Committee.

(2)        Loans should be made for a single academic year (nine months) with renewal possible for two successive years for students successfully pursuing masters or doctoral programs. Loans shall not exceed two thousand dollars ($2,000) for single students and three thousand dollars ($3,000) for married students.

(3)        All scholarship loans shall be evidenced by notes, with sufficient sureties, made payable to the State Board of Education, Department of Public Instruction, and shall bear interest at the rate of four percent (4%) per annum from and after September 1 following the awarding of the candidate's degree.

(4)        Recipients of loans may have them repaid by teaching in a college or other educational institution beyond the high school level in North Carolina upon completion of their masters or doctorate degree program, at the rate of one hundred dollars ($100.00) per month for each month of such teaching. If a student supported by a loan in this program should fail to so teach in a North Carolina institution, the  loan would become repayable to the State, with interest, for  that part of the teaching commitment not met, said note to be repaid according to the terms thereof.

(5)        Loans for 12 weeks of summer study, carrying stipends not to exceed five hundred dollars ($500.00) for single and married students, should be available to students who do not plan to attend postgraduate school as full-time students during the regular academic year. Recipients should be eligible for up to three renewals over a four-year period. The obligation to teach in a North Carolina college or other educational institution, or failing that, to repay the State, shall apply proportionally as indicated above."

SECTION 270.  G.S. 116-209.33(b) reads as rewritten:

"(b)      The State Education Assistance Authority, in consultation with the State Board of Education, Superintendent of Public Instruction, shall develop criteria for awarding scholarship loans from the Fund. These criteria shall include:

(1)        Measures of academic performance including grade point averages, scores on standardized tests, class rank, and recommendations of guidance counselors and principals.

(2)        North Carolina residency. - For purposes of this section, residency shall be determined by the same standard as residency for tuition purposes pursuant to G.S. 116-143.1.

(3)        The geographic areas or subjects of instruction in which the demand for teachers is greatest.

(4)        To the extent practical, an equal number of scholarships shall be awarded in each of the State's Congressional Districts.

(5)        Any additional criteria that the State Education Assistance Authority considers necessary to administer the Fund effectively, including the following:

a.         Consideration of the appropriate numbers of minority applicants and applicants from diverse socioeconomic backgrounds to receive scholarships pursuant to this section.

b.         Consideration of the commitment an individual applying to receive funds demonstrates to the profession of teaching."

SECTION 271.  G.S. 116-209.34(b) reads as rewritten:

"(b)      The State Education Assistance Authority, in consultation with the State Board of Education, Superintendent of Public Instruction, shall adopt rules to implement G.S. 116-209.33, 116-209.34, and 116-209.35."

SECTION 272.  G.S. 116-209.35 reads as rewritten:

"§ 116-209.35.  Teacher Assistant Scholarship Fund.

(a)        There is established the Teacher Assistant Scholarship Fund. The purpose of the Fund is to provide scholarships to teacher assistants who are pursuing college degrees to become teachers. The State Education Assistance Authority shall administer the Fund.

(b)        Criteria for awarding the scholarships shall be developed by the Board of Governors of The University of North Carolina in consultation with the State Board of Education Superintendent of Public Instruction and the State Board of Community Colleges and shall include all of the following:

(1)        An applicant shall be employed full time as a teacher assistant in North Carolina.

(2)        An applicant shall be enrolled in an accredited institution of higher education in North Carolina pursuing teacher licensure.

(3)        An applicant shall be a resident of North Carolina. For purposes of this section, residency shall be determined by the same standard as residency for tuition purposes pursuant to G.S. 116-143.1.

(4)        Any additional criteria that the Board of Governors considers necessary to administer the Fund effectively, including all of the following:

a.         Consideration of the appropriate numbers of minority applicants and applicants from diverse socioeconomic backgrounds to receive scholarships pursuant to this section.

b.         Consideration of the academic qualifications of the individuals applying to receive funds.

c.         Consideration of the commitment an individual applying to receive funds demonstrates to the profession of teaching.

(c)        The scholarships shall be available for part-time or full-time course work through all off-campus or distance education teacher education programs.

(d)        The Board of Governors of The University of North Carolina, the State Board of Education, Superintendent of Public Instruction, and the State Board of Community Colleges shall: (i) prepare a clear written explanation of the Teacher Assistant Scholarship Fund and the information regarding the availability and criteria for awarding the scholarships, and (ii) shall provide that information to the appropriate counselors in each local school system and shall charge those counselors to inform teacher assistants about the scholarships and to encourage teacher assistants to apply for the scholarships.

(e)        The Board of Governors of The University of North Carolina shall adopt rules to implement this section.

(f)         The Board of Governors of The University of North Carolina shall report to the Joint Legislative Education Oversight Committee by December 1 each year regarding the Fund and scholarships awarded from the Fund."

SECTION 273.  G.S. 116-209.52(a1) reads as rewritten:

"(a1)     Business or Trade School. - Any school within the State of North Carolina which is licensed by the State Board of Education Superintendent of Public Instruction and listed by that Board as an approved private business school or an approved private trade school."

SECTION 274.  G.S. 116C-2 reads as rewritten:

"§ 116C-2.  State Education Commission.

The State Education Commission shall consist of the Board of Governors of The University of North Carolina, the State Community College Board, the Superintendent of Public Instruction, and the State Board of Education. The Governor shall call the meetings of the State Education Commission.

The Commission shall be a forum for airing proposals and engaging in board-to-board dialogue about issues the Education Cabinet is addressing. The agenda for Commission meetings shall be set by the Education Cabinet."

SECTION 275.  G.S. 120-30.9G reads as rewritten:

"§ 120-30.9G.  School Administrative Units; State Board of Education; Superintendent of Public Instruction; Local Boards of Education Attorney.

(a)        The State Board of Education Superintendent of Public Instruction shall submit to the Attorney General of the United States within 30 days any rules, policies, procedures, or actions taken pursuant to G.S. 115C-64.4 which could result in the appointment of a caretaker administrator or board to perform any of the powers and duties of a local board of education where that school administrative unit is covered by the Voting Rights Act of 1965.

(b)        The attorney for any local board of education where that school administrative unit is covered by the Voting Rights Act of 1965 shall submit to the Attorney General of the United States within 30 days:

(1)        Of the time they become laws, any local acts of the General Assembly; and

(2)        Of adoption actions of the local boards of education which constitutes a "change affecting voting" under Section 5 of the Voting Rights Act of 1965 in that school administrative unit. If the change affecting voting is a merger of two or more school administrative units, the change shall be submitted jointly by the attorneys of the school administrative units involved, or by one of them by agreement of the attorneys involved."

SECTION 276.  G.S. 121-4(5) reads as rewritten:

"§ 121-4.  Powers and duties of the Department of Cultural Resources.

The Department of Cultural Resources shall have the following powers and duties:

…

(5)        With the cooperation of the State Board of Education and the Department of Public Instruction to develop, conduct, and assist in the coordination of a program for the better and more adequate teaching of State and local history in the public schools and the institutions of the community college system of North Carolina, including, as appropriate, the preparation and publication of suitable histories of all counties and of other appropriate materials, the distribution of such materials to the public schools and community college system for a reasonable charge, and the coordination of this program throughout the State."

SECTION 277.  G.S. 122C-113(b1) reads as rewritten:

"(b1)    The Secretary shall cooperate with the State Board of Education Department of Public Instruction and the Department of Juvenile Justice and Delinquency Prevention in coordinating the responsibilities of the Department of Health and Human Services, the State Board of Education, the Department of Public Instruction, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Public Instruction for adolescent substance abuse programs. The Department of Health and Human Services, through its Division of Mental Health, Developmental Disabilities, and Substance Abuse Services, in cooperation with the Department of Juvenile Justice and Delinquency Prevention, shall be responsible for intervention and treatment in non-school based programs. The State Board of Education and the Department of Public Instruction, in consultation with the Department of Juvenile Justice and Delinquency Prevention, shall have primary responsibility for in-school education, identification, and intervention services, including student assistance programs."

SECTION 278.  G.S. 126-4(7) reads as rewritten:

"§ 126-4.  Powers and duties of State Personnel Commission.

Subject to the approval of the Governor, the State Personnel Commission shall establish policies and rules governing each of the following:

…

(7)        Cooperation with the State Board of Education, the Department of Public Instruction, the University of North Carolina, and the Community Colleges of the State and other appropriate resources in developing programs in, including but not limited to, management and supervisory skills, performance evaluation, specialized employee skills, accident prevention, equal employment opportunity awareness, and customer service; and to maintain an accredited Certified Public Manager program."

SECTION 279.  G.S. 126-5(d) reads as rewritten:

"(d)     

…

(2)        Exempt Positions in Council of State Departments and Offices. - The Secretary of State, the Auditor, the Treasurer, the Superintendent of Public Instruction, the Attorney General, the Commissioner of Agriculture, the Commissioner of Insurance, and the Labor Commissioner may designate exempt positions. The State Board of Education may designate exempt positions in the Department of Public Instruction. The number of exempt policymaking positions in each department headed by an elected department head listed above in this sub-subdivision shall be limited to 20 exempt policymaking positions or one percent (1%) of the total number of full-time positions in the department, whichever is greater. The number of exempt managerial positions shall be limited to 20 positions or one percent (1%) of the total number of full-time positions in the department, whichever is greater.

(2a)      Designation of Additional Positions. - The Governor, Governor or elected department head, or State Board of Education head may request that additional positions be designated as exempt. The request shall be made by sending a list of exempt positions that exceed the limit imposed by this subsection to the Speaker of the North Carolina House of Representatives and the President of the North Carolina Senate. A copy of the list also shall be sent to the State Personnel Director. The General Assembly may authorize all, or part of, the additional positions to be designated as exempt positions. If the General Assembly is in session when the list is submitted and does not act within 30 days after the list is submitted, the list shall be deemed approved by the General Assembly, and the positions shall be designated as exempt positions. If the General Assembly is not in session when the list is submitted, the 30-day period shall not begin to run until the next date that the General Assembly convenes or reconvenes, other than for a special session called for a specific purpose not involving the approval of the list of additional positions to be designated as exempt positions; the policymaking positions shall not be designated as exempt during the interim.

…

(4)        Vacancies. - In the event of a vacancy in the Office of Governor or in the office of a member of the Council of State, the person who succeeds to or is appointed or elected to fill the unexpired term shall make such designations in a letter to the State Personnel Director, the Speaker of the House of Representatives, and the President of the Senate within 120 days after the oath of office is administered to that person. In the event of a vacancy in the Office of Governor, the State Board of Education shall make these designations in a letter to the State Personnel Director, the Speaker of the House of Representatives, and the President of the Senate within 120 days after the oath of office is administered to the Governor.

(5)        Creation, Transfer, or Reorganization. - The Governor,Governor or elected department head, or State Board of Educationhead may designate as exempt a position that is created or transferred to a different department, or is located in a department in which reorganization has occurred, after May 1 of the year in which the oath of office is administered to the Governor. The designation must be made in a letter to the State Personnel Director, the Speaker of the North Carolina House of Representatives, and the President of the North Carolina Senate within 120 days after such position is created, transferred, or in which reorganization has occurred.

…."

SECTION 280.  G.S. 126-8.3 reads as rewritten:

"§ 126-8.3.  Voluntary shared leave.

(a)        The State Personnel Commission, in cooperation with the State Board of Community Colleges and the State Board of Education, Superintendent of Public Instruction, shall adopt rules and policies to allow any employee at a State agency to share leave voluntarily with an immediate family member who is an employee of a State agency, community college, or public school; and with a coworker's immediate family member who is an employee of a State agency, community college, or public school. For the purposes of this section, the term "immediate family member" means a spouse, parent, child, brother, sister, grandparent, or grandchild. The term includes the step, half, and in-law relationships. The term "coworker" means that the employee donating the leave is employed by the same agency, department, institution, university, local school administrative unit, or community college as the employee whose immediate family member is receiving the leave.

(b)        The State Personnel Commission shall adopt rules and policies for the voluntary shared leave program to allow an employee at a State agency to donate sick leave to a nonfamily member employee of a State agency. A donor of sick leave to a nonfamily member recipient shall not donate more than five days of sick leave per year to any one nonfamily member recipient. The combined total of sick leave donated to a recipient from nonfamily member donors shall not exceed 20 days per year. Donated sick leave shall not be used for retirement purposes, and employees who donate sick leave shall be notified in writing of the State retirement credit consequences of donating sick leave.

(c)        The State Personnel Commission, the State Board of Education, Department of Public Instruction, and the State Board of Community Colleges shall annually report on the voluntary shared leave program. For the prior fiscal year, the report shall include the total number of days or hours of vacation leave and sick leave donated and used by voluntary shared leave recipients and the total cost of the vacation leave and sick leave donated and used. The State Personnel Commission, the State Board of Education, Department of Public Instruction, and the State Board of Community Colleges shall provide a report for each fiscal year as required by this section to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division on or before October 15 each year."

SECTION 281.  G.S. 130A-236 reads as rewritten:

"§ 130A-236.  Regulation of sanitation in schools.

For the protection of the public health, the Commission shall adopt rules to establish sanitation requirements for public, private and religious schools. The rules shall address, but not be limited to, the cleanliness of floors, walls, ceilings, storage spaces and other areas; adequacy of lighting, ventilation, water supply, toilet and lavatory facilities; sewage collection, treatment and disposal facilities; and solid waste disposal. The Department shall inspect schools at least annually. The Department shall submit written inspection reports of public schools to the State Board of EducationDepartment of Public Instruction and written inspection reports of private and religious schools to the Department of Administration."

SECTION 282.  G.S. 135-1(11) reads as rewritten:

"§ 135-1.  Definitions.

The following words and phrases as used in this Chapter, unless a different meaning is plainly required by the context, shall have the following meanings:

…

(11)      "Employer" shall mean the State of North Carolina, the county board of education, the city board of education, the State Board of Education, Department of Public Instruction, the board of trustees of the University of North Carolina, the board of trustees of other institutions and agencies supported and under the control of the State, or any other agency of and within the State by which a teacher or other employee is paid."

SECTION 283.  G.S. 135-5.3(b) reads as rewritten:

"(b)      No later than 30 days after both parties have signed the written charter under G.S. 115C-238.29E, the board of directors of a charter school operated by a private nonprofit corporation shall elect whether to become a participating employer in the Retirement System in accordance with this Article. This election shall be in writing and filed with the Retirement System and with the State Board of Education Department of Public Instruction and is effective for each charter school employee as of the date of that employee's entry into eligible service. This subsection applies to charter schools that receive State Board of Education Department of Public Instruction approval under G.S. 115C-238.29D after 1998."

SECTION 284.  G.S. 135-45.5(b) reads as rewritten:

"(b)      No later than 30 days after both parties have signed the written charter under G.S. 115C-238.29E, the board of directors of a charter school operated by a private nonprofit corporation shall elect whether to become a participating employer in the Plan in accordance with this Article. This election shall be in writing and filed with the Executive Administrator, the Board of Trustees, and the State Board of Education. Department of Public Instruction. This election is effective for each charter school employee as of the date of that employee's entry into eligible service. This subsection applies to charter schools that receive State Board of Education Department of Public Instruction approval under G.S. 115C-238.29D after 1998."

SECTION 285.  G.S. 138A-24(a)(4) reads as rewritten:

"§ 138A-24.  Contents of statement.

(a)        Any statement of economic interest filed under this Article shall be on a form prescribed by the Commission. Answers must be provided to all questions. The form shall include the following information about the filing person and the filing person's immediate family:

…

(14)      A statement indicating "Yes" or "No" as to whether the filing person engaged in each of the following activities during the preceding calendar year, with respect to or on the behalf of the candidate or candidate campaign committee of the covered person as defined in G.S. 138A-3(30)a. appointing the filing person: (i) collected contributions from multiple contributors, took possession of such multiple contributions, and transferred or delivered those collected multiple contributions, (ii) hosted a fund-raiser in the filing person's residence or place of business, or (iii) volunteered for campaign-related activity. This subdivision only applies to filing persons in the following categories:

a.         A public servant, or a prospective appointee to, as defined in G.S. 138A-3(30)c.

b.         A judicial officer that serves on, or a prospective appointee to, the Supreme Court, the Court of Appeals, the superior court, or the district court.

c.         A covered person serving on, or a prospective appointee to, one of the following boards:

1.         Alcoholic Beverage Control Commission.

2.         Coastal Resources Commission.

3.         State Board of Education.

4.         State Board of Elections.

5.         Employment Security Commission.

6.         Environmental Management Commission.

7.         Industrial Commission.

8.         State Personnel Commission.

9.         Rules Review Commission.

10.       Board of Transportation.

11.       Board of Governors of the University of North Carolina.

12.       Utilities Commission."

SECTION 286.  G.S. 143-291(a) reads as rewritten:

"(a)       The North Carolina Industrial Commission is hereby constituted a court for the purpose of hearing and passing upon tort claims against the State Board of Education, Superintendent of Public Instruction, the Board of Transportation, and all other departments, institutions and agencies of the State. The Industrial Commission shall determine whether or not each individual claim arose as a result of the negligence of any officer, employee, involuntary servant or agent of the State while acting within the scope of his office, employment, service, agency or authority, under circumstances where the State of North Carolina, if a private person, would be liable to the claimant in accordance with the laws of North Carolina. If the Commission finds that there was negligence on the part of an officer, employee, involuntary servant or agent of the State while acting within the scope of his office, employment, service, agency or authority that was the proximate cause of the injury and that there was no contributory negligence on the part of the claimant or the person in whose behalf the claim is asserted, the Commission shall determine the amount of damages that the claimant is entitled to be paid, including medical and other expenses, and by appropriate order direct the payment of damages as provided in subsection (a1) of this section, but in no event shall the amount of damages awarded exceed the amounts authorized in G.S. 143-299.2 cumulatively to all claimants on account of injury and damage to any one person arising out of a single occurrence. Community colleges and technical colleges shall be deemed State agencies for purposes of this Article. The fact that a claim may be brought under more than one Article under this Chapter shall not increase the foregoing maximum liability of the State."

SECTION 287.  G.S. 143-300.1 reads as rewritten:

"§ 143-300.1.  Claims against county and city boards of education for accidents involving school buses or school transportation service vehicles.

(a)        The North Carolina Industrial Commission shall have jurisdiction to hear and determine tort claims against any county board of education or any city board of education, which claims arise as a result of any alleged mechanical defects or other defects which may affect the safe operation of a public school bus or school transportation service vehicle resulting from an alleged negligent act of maintenance personnel or as a result of any alleged negligent act or omission of the driver, transportation safety assistant, or monitor of a public school bus or school transportation service vehicle when:

(1)        The driver is an employee of the county or city administrative unit of which that board is the governing body, and the driver is paid or authorized to be paid by that administrative unit,

(1a)      The monitor was appointed and acting in accordance with G.S. 115C-245(d),

(1b)      The transportation safety assistant was employed and acting in accordance with G.S. 115C-245(e), or

(2)        The driver is an unpaid school bus driver trainee under the supervision of an authorized employee of the Department of Transportation, Division of Motor Vehicles, or an authorized employee of that board or a county or city administrative unit thereof,

and which driver was at the time of the alleged negligent act or omission operating a public school bus or school transportation service vehicle in accordance with G.S. 115C-242 in the course of his employment by or training for that administrative unit or board, which monitor was at the time of the alleged negligent act or omission acting as such in the course of serving under G.S. 115C-245(d), or which transportation safety assistant was at the time of the alleged negligent act or omission acting as such in the course of serving under G.S. 115C-245(e). The liability of such county or city board of education, the defenses which may be asserted against such claim by such board, the amount of damages which may be awarded to the claimant, and the procedure for filing, hearing and determining such claim, the right of appeal from such determination, the effect of such appeal, and the procedure for taking, hearing and determining such appeal shall be the same in all respects as is provided in this Article with respect to tort claims against the State Board of Education Superintendent of Public Instruction except as hereinafter provided. Any claim filed against any county or city board of education pursuant to this section shall state the name and address of such board, the name of the employee upon whose alleged negligent act or omission the claim is based, and all other information required by G.S. 143-297 in the case of a claim against the Superintendent of Public Instruction. State Board of Education. Immediately upon the docketing of a claim, the Industrial Commission shall forward one copy of the plaintiff's affidavit to the superintendent of the schools of the county or city administrative unit against the governing board of which such claim is made, one copy of the plaintiff's affidavit to the State Board of Education Superintendent of Public Instruction and one copy of the plaintiff's affidavit to the office of the Attorney General of North Carolina. All notices with respect to tort claims against any such county or city board of education shall be given to the superintendent of schools of the county or city administrative unit of which such board is a governing board, to the State Board of Education Superintendent of Public Instruction and also to the office of the Attorney General of North Carolina.

(b)        The Attorney General shall be charged with the duty of representing the city or county board of education in connection with claims asserted against them pursuant to this section where the amount of the claim, in the opinion of the Attorney General, is of sufficient import to require and justify such appearance.

(c)        In the event that the Industrial Commission awards damages against any county or city board of education under this section, the Attorney General shall draw a voucher for the amount required to pay the award. The funds necessary to cover the first one hundred fifty thousand dollars ($150,000) of liability per claim for claims against county and city boards of education for accidents involving school buses and school transportation service vehicles shall be made available from funds appropriated to the State Board of Education. Department of Public Instruction. The balance of any liability owed shall be paid in accordance with G.S. 143-299.4. Neither the county or city boards of education, or the county or city administrative unit shall be liable for the payment of any award made pursuant to the provisions of this section in excess of the amount paid upon a voucher by the Attorney General. Settlement and payment may be made by the Attorney General as provided in G.S. 143-295.

(d)        Except as otherwise provided in this subsection, the Attorney General may, upon the request of an employee or former employee, defend any civil action brought against the driver, transportation safety assistant, or monitor of a public school bus or school transportation service vehicle or school bus maintenance mechanic when the driver or mechanic is employed and paid by the local school administrative unit, when the monitor is acting in accordance with G.S. 115C-245(d), when the transportation safety assistant is acting in accordance with G.S. 115C-245(e), or when the driver is an unpaid school bus driver trainee under the supervision of an authorized employee of the Department of Transportation, Division of Motor Vehicles, or an authorized employee of a county or city board of education or administrative unit. The Attorney General may afford this defense through the use of a member of his staff or, in his discretion, employ private counsel. The Attorney General is authorized to pay any judgment rendered in the civil action not to exceed the limit provided under the Tort Claims Act. The funds necessary to cover the first one hundred fifty thousand dollars ($150,000) of liability per claim shall be made available from funds appropriated to the State Board of Education. Department of Public Instruction. The balance of any liability owed shall be paid in accordance with G.S. 143-299.4. The Attorney General may compromise and settle any claim covered by this section to the extent that he finds the same to be valid, up to the limit provided in the Tort Claims Act, provided that the authority granted in this subsection shall be limited to only those claims that would be within the jurisdiction of the Industrial Commission under the Tort Claims Act.

The Attorney General shall refuse to provide for the defense of a civil action or proceeding brought against an employee or former employee if the Attorney General determines that:

(1)        The act or omission was not within the scope and course of his employment as a State employee; or

(2)        The employee or former employee acted or failed to act because of actual fraud, corruption, or actual malice on his part; or

(3)        Defense of the action or proceeding by the State would create a conflict of interest between the State and the employee or former employee; or

(4)        Defense of the action or proceeding would not be in the best interests of the State."

SECTION 288.  G.S. 143-300.16(a) reads as rewritten:

"(a)       Any final judgment awarded against an employee in an action that meets the requirements of G.S. 143-300.14, or any amount payable under a settlement of the action, shall be paid the State. The first one hundred fifty thousand dollars($150,000) of liability shall be paid from funds appropriated to the State Board of Education Department of Public Instruction for the payment of State Tort Claims. The balance of any payment owed shall be paid in accordance with G.S. 143-299.4. No payment shall be made from either funds appropriated to the State Board of Education Department of Public Instruction or funds transferred from State agencies under G.S. 143-299.4 for any judgment for punitive damages. Nothing in this section shall be deemed to waive the sovereign immunity of the State with respect to a claim covered under this section or authorize the payment of any judgment or settlement against a public school employee in excess of the limit provided in the Tort Claims Act."

SECTION 289.  G.S. 143B-146.1(b) reads as rewritten:

"(b)      The following definitions apply in this Part:

(1)        ABC's Program or Program. - The School-Based Management and Accountability Program developed by the State Board.

(2)        Department. - The Department of Health and Human Services.

(3)        Instructional personnel. - Assistant principals, teachers, instructional personnel, instructional support personnel, and teacher assistants employed in a residential school.

(4)        Participating school. - A residential school that is required to participate in the ABC's Program.

(5)        Residential school personnel. - The individuals included in G.S. 143B-146.16(a)(2).

(6)        Schools. - The residential schools under the control of the Secretary.

(7)        Secretary. - The Secretary of Health and Human Services.

(8)        State Board. - The State Board of Education.

(9)        Superintendent. - The Superintendent of the Office of Education Services of the Department of Health and Human Services."

SECTION 290.  G.S. 143B-146.2 reads as rewritten:

"§ 143B-146.2.  ABC's Program in residential schools.

(a)        The Governor Morehead School and the schools for the deaf shall participate in the ABC's Program. The Secretary, in consultation with the General Assembly and the State Board, Department of Public Instruction, may designate other residential schools that must participate in the ABC's Program. The primary goal of the ABC's Program is to improve student performance. The Program is based upon an accountability, recognition, assistance, and intervention process in order to hold each participating school, its principal, and the instructional personnel accountable for improved student performance in that school.

(b)        In order to support the participating schools in the implementation of this Program, the State Board, Department of Public Instruction, in consultation with the Secretary, shall adopt guidelines, including guidelines to:

(1)        Assist the Secretary and the participating schools in the development and implementation of the ABC's Program.

(2)        Recognize the participating schools that meet or exceed their goals.

(3)        Identify participating schools that are low-performing and assign assistance teams to those schools. The assistance teams should include individuals with expertise in residential schools, individuals with experience in the education of children with disabilities, and others the State Board, Department of Public Instruction, in consultation with the Secretary, considers appropriate.

(4)        Enable assistance teams to make appropriate recommendations.

(c)        The ABC's Program shall provide increased decision making and parental involvement at the school level with the goal of improving student performance.

(d)        Consistent with improving student performance, the Secretary shall provide maximum flexibility to participating schools in the use of funds to enable those schools to accomplish their goals."

SECTION 291.  G.S. 143B-146.3 reads as rewritten:

"§ 143B-146.3.  Annual performance goals.

The ABC's Program shall (i) focus on student performance in the basics of reading, mathematics, and communications skills in elementary and middle schools, (ii) focus on student performance in courses required for graduation and on other measures required by the State Board Superintendent of Public Instruction in the high schools, and (iii) hold participating schools accountable for the educational growth of their students. To those ends, the State Board Superintendent of Public Instruction shall design and implement an accountability system that sets annual performance standards for each participating school in order to measure the growth in performance of the students in each individual school."

SECTION 292.  G.S. 143B-146.4 reads as rewritten:

"§ 143B-146.4.  Performance recognition.

(a)        The personnel in participating schools that achieve a level of expected growth greater than one hundred percent (100%) at a level to be determined by the State Board of Education Superintendent of Public Instruction are eligible for financial awards in amounts set by the State Board. Superintendent of Public Instruction. Schools and personnel shall not be required to apply for these awards. For the purpose of this section, "personnel" includes the principal and the instructional personnel (i) serving students in one or more of the grades kindergarten through 12 or (ii) assigned to a prekindergarten program that is located within the participating school and is designed to prepare students for kindergarten at that school.

(b)        The State Board Superintendent of Public Instruction shall establish a procedure to allocate the funds for these awards. Funds shall become available for expenditure July 1 of each fiscal year. Funds shall remain available until November 30 of the subsequent fiscal year for expenditure for awards to personnel.

The Secretary is encouraged to make these awards to each eligible person no later than the first regular teacher payroll following receipt of the funds, and shall make these awards to each eligible person no later than the second regular teacher payroll following the receipt of the funds."

SECTION 293.  G.S. 143B-146.5 reads as rewritten:

"§ 143B-146.5.  Identification of low-performing schools.

(a)        The State Board Superintendent of Public Instruction shall design and implement a procedure to identify low-performing schools on an annual basis. Low-performing schools are those participating schools in which there is a failure to meet the minimum growth standards, as defined by the State Board, Superintendent of Public Instruction, and a majority of students are performing below grade level.

(b)        By July 10 of each year, the Secretary shall do a preliminary analysis of test results to determine which participating schools the State Board Superintendent of Public Instruction may identify as low-performing under this section. The Secretary then shall proceed under G.S. 143B-146.7. In addition, within 30 days of the initial identification of a school as low-performing by the Secretary or the State Board, Superintendent of Public Instruction, whichever occurs first, the Secretary shall develop a preliminary plan for addressing the needs of that school. Before the Secretary adopts this plan, the Secretary shall make the plan available to the residential school personnel and the parents and guardians of the students of the school, and shall allow for written comments. Within five days of adopting the plan, the Secretary shall submit the plan to the State Board. Superintendent of Public Instruction. The State Board Superintendent of Public Instruction shall review the plan expeditiously and, if appropriate, may offer recommendations to modify the plan. The Secretary shall consider any recommendations made by the State Board.Superintendent of Public Instruction.

(c)        Each identified low-performing school shall provide written notification to the parents of students attending that school. The written notification shall include a statement that the State Board of Education Superintendent of Public Instruction has found that the school has "failed to meet the minimum growth standards, as defined by the State Board,Superintendent of Public Instruction and a majority of students in the school are performing below grade level." This notification also shall include a description of the steps the school is taking to improve student performance."

SECTION 294.  G.S. 143B-146.6 reads as rewritten:

"§ 143B-146.6.  Assistance teams; review by State Board.Superintendent of Public Instruction.

(a)        The State Board Superintendent of Public Instruction may assign an assistance team to any school identified as low-performing under this Part or to any other school that the State Board Superintendent of Public Instruction determines would benefit from an assistance team. The State Board Superintendent of Public Instruction shall give priority to low-performing schools in which the educational performance of the students is declining. The Department shall, with the approval of the Secretary, provide staff as needed and requested by an assistance team.

(b)        When assigned to an identified low-performing school, an assistance team shall:

(1)        Review and investigate all facets of school operations, including instructional and residential, and assist in developing recommendations for improving student performance at that school.

(2)        Evaluate at least semiannually the principal and instructional personnel assigned to the school and make findings and recommendations concerning their performance.

(3)        Collaborate with school staff, the Department, and the Secretary in the design, implementation, and monitoring of a plan that, if fully implemented, can reasonably be expected to alleviate problems and improve student performance at that school.

(4)        Make recommendations as the school develops and implements this plan.

(5)        Review the school's progress.

(6)        Report, as appropriate, to the Secretary, the State Board, Superintendent of Public Instruction, and the parents on the school's progress. If an assistance team determines that an accepted school improvement plan developed under G.S. 143B-146.12 is impeding student performance at a school, the team may recommend to the Secretary that he vacate the relevant portions of that plan and direct the school to revise those portions.

(c)        If a participating school fails to improve student performance after assistance is provided under this section, the assistance team may recommend that the assistance continue or that the Secretary take further action under G.S. 143B-146.7.

(d)        The Secretary, in consultation with the State Board, Superintendent of Public Instruction, shall annually review the progress made in identified low-performing schools."

SECTION 295.  G.S. 143B-146.7 reads as rewritten:

"§ 143B-146.7.  Consequences for personnel at low-performing schools.

(a)        Within 30 days of the initial identification of a school as low-performing, whether by the Secretary under G.S. 143B-146.5(b) or by the State Board Superintendent of Public Instruction under G.S. 143B-146.5(a), the Secretary shall take one of the following actions concerning the school's principal: (i) decide whether the principal should be retained in the same position, (ii) decide whether the principal should be retained in the same position and a plan of remediation should be developed, (iii) decide whether the principal should be transferred, or (iv) proceed under the State Personnel Act to dismiss or demote the principal. The principal may be retained in the same position without a plan for remediation only if the principal was in that position for no more than two years before the school is identified as low-performing. The principal shall not be transferred to another position unless (i) it is in a principal position in which the principal previously demonstrated at least two years of success, (ii) there is a plan to evaluate and provide remediation to the principal for at least one year following the transfer to assure the principal does not impede student performance at the school to which the principal is being transferred; and (iii) the parents of the students at the school to which the principal is being transferred are notified. The principal shall not be transferred to another low-performing school. The Secretary may, at any time, proceed under the State Personnel Act for the dismissal of any principal who is assigned to a low-performing school to which an assistance team has been assigned. The Secretary shall proceed under the State Personnel Act for the dismissal of any principal when the Secretary receives from the assistance team assigned to that school two consecutive evaluations that include written findings and recommendations regarding the principal's inadequate performance. The Secretary shall order the dismissal of the principal if the Secretary determines from available information, including the findings of the assistance team, that the low performance of the school is due to the principal's inadequate performance. The Secretary may order the dismissal of the principal if (i) the Secretary determines that the school has not made satisfactory improvement after the State Board Superintendent of Public Instruction assigned an assistance team to that school; and (ii) the assistance team makes the recommendation to dismiss the principal. The Secretary may order the dismissal of a principal before the assistance team assigned to the principal's school has evaluated that principal if the Secretary determines from other available information that the low performance of the school is due to the principal's inadequate performance. The burden of proof is on the principal to establish that the factors leading to the school's low performance were not due to the principal's inadequate performance. The burden of proof is on the Secretary to establish that the school failed to make satisfactory improvement after an assistance team was assigned to the school. Two consecutive evaluations that include written findings and recommendations regarding that person's inadequate performance from the assistance team are substantial evidence of the inadequate performance of the principal. Within 15 days of the Secretary's decision concerning the principal, but no later than September 30, the Secretary shall submit to the State Board Superintendent of Public Instruction a written notice of the action taken and the basis for that action.

(b)        At any time after the State Board Superintendent of Public Instruction identifies a school as low-performing under this Part, the Secretary shall proceed under G.S. 115C-325(p1) for the dismissal of certificated instructional personnel assigned to that school.

(c)        At any time after the State Board Superintendent of Public Instruction identifies a school as low-performing under this Part, the Secretary shall proceed under the State Personnel Act for the dismissal of instructional personnel who are not certificated when the Secretary receives two consecutive evaluations that include written findings and recommendations regarding that person's inadequate performance from the assistance team. These findings and recommendations shall be substantial evidence of the inadequate performance of the instructional personnel. The Secretary may proceed under the State Personnel Act for the dismissal of instructional personnel who are not certificated when: (i) the Secretary determines that the school has failed to make satisfactory improvement after the State Board Superintendent of Public Instruction assigned an assistance team to that school; and (ii) that the assistance team makes the recommendation to dismiss that person for a reason that constitutes just cause for dismissal under the State Personnel Act.

(d)        The certificated instructional personnel working in a participating school at the time the school is identified by the State Board Superintendent of Public Instruction as low-performing are subject to G.S. 115C-105.38A.

(e)        The Secretary may terminate the contract of a school administrator dismissed under this section. Nothing in this section shall prevent the Secretary from refusing to renew the contract of any person employed in a school identified as low-performing under this Part."

SECTION 296.  G.S. 143B-146.8 reads as rewritten:

"§ 143B-146.8.  Evaluation of certificated personnel and principals; action plans; State Board Superintendent of Public Instruction notification.

(a)        Annual Evaluations; Low-Performing Schools. - The principal shall evaluate at least once each year all certificated personnel assigned to a participating school that has been identified as low-performing but has not received an assistance team. The evaluation shall occur early enough during the school year to provide adequate time for the development and implementation of an action plan if one is recommended under subsection (b) of this section. If the employee is a teacher as defined under G.S. 115C-325(a)(6), either the principal or an assessment team assigned under G.S. 143B-146.9 shall conduct the evaluation. If the employee is a school administrator as defined under G.S. 115C-287.1(a)(3), the Superintendent shall conduct the evaluation.

Notwithstanding this subsection or any other law, the principal shall observe at least three times annually, a teacher shall observe at least once annually, and the principal shall evaluate at least once annually, all teachers who have not attained career status. All other employees defined as teachers under G.S. 115C-325(a)(6) who are assigned to participating schools that are not designated as low-performing shall be evaluated annually unless the Secretary adopts rules that allow specified categories of teachers with career status to be evaluated more or less frequently. The Secretary also may adopt rules requiring the annual evaluation of noncertificated personnel. This section shall not be construed to limit the duties and authority of an assistance team assigned to a low-performing school.

The Secretary shall use the State Board's Superintendent of Public Instruction's performance standards and criteria unless the Secretary develops an alternative evaluation that is properly validated and that includes standards and criteria similar to those adopted by the State Board. Superintendent of Public Instruction. All other provisions of this section shall apply if an evaluation is used other than one adopted by the State Board. Superintendent of Public Instruction.

(b)        Action Plans. - If a certificated employee in a participating school that has been identified as low-performing receives an unsatisfactory or below standard rating on any function of the evaluation that is related to the employee's instructional duties, the individual or team that conducted the evaluation shall recommend to the principal that: (i) the employee receive an action plan designed to improve the employee's performance; or (ii) the principal recommend to the Secretary that the employee be dismissed or demoted. The principal shall determine whether to develop an action plan or to recommend a dismissal proceeding. The person who evaluated the employee or the employee's supervisor shall develop the action plan unless an assistance team or assessment team conducted the evaluation. If an assistance team or assessment team conducted the evaluation, that team shall develop the action plan in collaboration with the employee's supervisor. Action plans shall be designed to be completed within 90 instructional days or before the beginning of the next school year. The State Board, Superintendent of Public Instruction, in consultation with the Secretary, shall develop guidelines that include strategies to assist in evaluating certificated personnel and developing effective action plans within the time allotted under this section. The Secretary may adopt policies for the development and implementation of action plans or professional development plans for personnel who do not require action plans under this section.

(c)        Reevaluation. - Upon completion of an action plan under subsection (b) of this section, the principal or the assessment team shall evaluate the employee a second time. If on the second evaluation the employee receives one unsatisfactory or more than one below standard rating on any function that is related to the employee's instructional duties, the principal shall recommend that the employee be dismissed or demoted under G.S. 115C-325. The results of the second evaluation shall constitute substantial evidence of the employee's inadequate performance.

(d)        State Board Superintendent of Public Instruction Notification. - If the Secretary dismisses an employee for any reason except a reduction in force under G.S. 115C-325(e)(1)l., the Secretary shall notify the State Board Superintendent of Public Instruction of the action, and the State Board Superintendent of Public Instruction annually shall provide to all local boards of education the names of those individuals. If a local board hires one of these individuals, that local board shall proceed under G.S. 115C-333(d).

(e)        Civil Immunity. - There shall be no liability for negligence on the part of the Secretary or the State Board, Superintendent of Public Instruction, or their employees, arising from any action taken or omission by any of them in carrying out this section. The immunity established by this subsection shall not extend to gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable. The immunity established by this subsection is waived to the extent of indemnification by insurance, indemnification under Articles 31A and 31B of Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes.

(f)         Evaluation of Principals. - Each year the Secretary or the Superintendent shall evaluate the principals."

SECTION 297.  G.S. 143B-146.9 reads as rewritten:

"§ 143B-146.9.  Assessment teams.

The State Board Superintendent of Public Instruction shall develop guidelines for the Secretary to use to create assessment teams. The Secretary shall assign an assessment team to every low-performing school that has not received an assistance team. The Secretary shall ensure that assessment team members are trained in the proper administration of the employee evaluation used in the participating schools. If service on an assessment team is an additional duty for an employee of a local school administrative unit or an employee of a residential school, the Secretary may pay the employee for that additional work.

Assessment teams shall:

(1)        Conduct evaluations of certificated personnel in low-performing schools;

(2)        Provide technical assistance and training to principals who conduct evaluations of certificated personnel;

(3)        Develop action plans for certificated personnel; and

(4)        Assist principals in the development and implementation of action plans."

SECTION 298.  G.S. 143B-146.10 reads as rewritten:

"§ 143B-146.10.  Development of performance standards and criteria for certificated personnel.

The State Board, Superintendent of Public Instruction, in consultation with the Secretary, shall revise and develop uniform performance standards and criteria to be used in evaluating certificated personnel, including school administrators. These standards and criteria shall include improving student achievement, employee skills, and employee knowledge. The standards and criteria for school administrators also shall include building-level gains in student learning and effectiveness in providing for school safety and enforcing student discipline. The Secretary shall develop guidelines for evaluating principals. The guidelines shall include criteria for evaluating a principal's effectiveness in providing safe schools and enforcing student discipline."

SECTION 299.  G.S. 143B-146.12 reads as rewritten:

"§ 143B-146.12.  Development and approval of school improvement plans.

(a)        In order to improve student performance, each school shall develop a school improvement plan that takes into consideration the annual performance goal for that school that is set by the State Board Superintendent of Public Instruction under G.S. 143B-146.3. The principal of each school, instructional personnel, and residential life personnel assigned to that school, and a minimum of five parents of children enrolled in the school shall constitute a school improvement team to develop a school improvement plan to improve student performance.

…

(h)        The Superintendent, in consultation with the State Board, Superintendent of Public Instruction, shall develop a list of recommended strategies that it determines to be effective which building level committees may use to establish parent involvement programs designed to meet the specific needs of their schools.

…."

SECTION 300.  G.S. 143B-146.13 reads as rewritten:

"§ 143B-146.13.  School technology plan.

(a)        No later than December 15, 1998, the Secretary shall develop a school technology plan for the residential schools that meets the requirements of the State school technology plan. In developing a school technology plan, the Secretary is encouraged to coordinate its planning with other agencies of State and local government, including local school administrative units.

The Office of Information Technology Services shall assist the Secretary in developing the parts of the plan related to its technological aspects, to the extent that resources are available to do so. The Department of Public Instruction shall assist the Secretary in developing the instructional and technological aspects of the plan.

The Secretary shall submit the plan that is developed to the Office of Information Technology Services for its evaluation of the parts of the plan related to its technological aspects and to the Department of Public Instruction for its evaluation of the instructional aspects of the plan. The State Board of Education, after consideration of the evaluations Superintendent of Public Instruction shall consider the evaluation of the Office of Information Technology Services and the Department of Public Instruction, shall approve all plans that comply with the requirements of the State school technology plan.

(b)        After a plan is approved by the State Board of Education, Superintendent of Public Instruction, all funds spent for technology in the residential schools shall be used to implement the school technology plan."

SECTION 300.1.  G.S. 143B-146.16 reads as rewritten:

"§ 143B-146.16.  Residential school personnel criminal history checks.

…

(e)        The Secretary shall provide to the State Board of Education Superintendent of Public Instruction the criminal history received on a person who is certificated, certified, or licensed by the State Board. Superintendent of Public Instruction. The State BoardSuperintendent of Public Instruction shall review the criminal history and determine whether the person's certificate or license should be revoked in accordance with State laws and rules regarding revocation.

(f)         All the information received by the Secretary through the checking of the criminal history or by the State BoardSuperintendent of Public Instruction in accordance with subsection (d) of this section is privileged information and is not a public record but is for the exclusive use of the Secretary or the State Board of Education. Superintendent of Public Instruction. The Secretary or the State Board of Education Superintendent of Public Instruction may destroy the information after it is used for the purposes authorized by this section after one calendar year.

(g)        There shall be no liability for negligence on the part of the Secretary, the Department of Health and Human Services or its employees, a residential school or its employees, or the State Board of EducationDepartment of Public Instruction or its employees, arising from any act taken or omission by any of them in carrying out the provisions of this section. The immunity established by this subsection shall not extend to gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable. The immunity established by this subsection shall be deemed to have been waived to the extent of indemnification by insurance, indemnification under Articles 31A and 31B of Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes."

SECTION 301.  G.S. 143B-516(b)(17a) reads as rewritten:

"(b)      The Secretary shall have the following powers and duties:

…

(17a)    Set, in consultation with the Office of State Personnel, the salary supplement paid to teachers, instructional support personnel, and school-based administrators who are employed at juvenile facilities and are licensed by the State Board of Education. Superintendent of Public Instruction. The salary supplement shall be at least five percent (5%), but not more than the percentage supplement they would receive if they were employed in the local school administrative unit where the job site is located. These salary supplements shall not be paid to central office staff. Nothing in this subdivision shall be construed to include "merit pay" under the term "salary supplement"."

SECTION 302.  G.S. 146-4 reads as rewritten:

"§ 146-4.  Sales of certain lands; procedure; deeds; disposition of proceeds.

The Department of Administration may sell the vacant and unappropriated lands, swamplands, and lands acquired by the State by virtue of being sold for taxes, at public or private sale, at such times, upon such consideration, in such portions, and upon such terms as are deemed proper by the Department and approved by the Governor and Council of State. Every deed conveying any part of those lands in fee shall be executed in the manner required by G.S. 146-74 through 146-78, and shall be approved by the Governor and Council of State as therein required. The net proceeds of all such sales of those lands shall be paid into the State Literary Fund. Whenever negotiations are begun by the Department for the purpose of selling swampland or the timber thereon, the Department shall promptly notify the State Board of Education Department of Public Instruction of that fact. If the Board Superintendent of Public Instruction deems the proposed sale inadvisable, it may so inform the Governor and Council of State, who may give due consideration to the representations of the Board Superintendent of Public Instruction in determining whether to approve or disapprove the proposed transaction."

SECTION 303.  G.S. 146-6(b) reads as rewritten:

"(b)      If any land is, by act of man, raised above the high watermark of any navigable water by filling, except such filling be to reclaim lands theretofore lost to the owner by natural causes or as otherwise provided under the proviso of subsection (d), title thereto shall vest in the State and the land so raised shall become a part of the vacant and unappropriated lands of the State, unless the commission of the act which caused the raising of the land in question shall have been previously approved in the manner provided in subsection (c) of this section. Title to land so raised, however, does not vest in the State if the land was raised within the bounds of a conveyance made by the State Board of Education, Education or the Superintendent of Public Instruction which included regularly flooded estuarine marshlands or lands beneath navigable waters, or if the land was raised under permits issued to private individuals pursuant to G.S. 113-229, G.S. 113A-100 through 113A-128, or both."

SECTION 304.  G.S. 146-20.1(a) reads as rewritten:

"(a)       Validation. - All conveyances of swamplands, including regularly flooded estuarine marshlands, that have previously been made by the Literary Fund, the North Carolina Literary Board, or the State Board of Education or the Superintendent of Public Instruction are declared valid, and the person to whom the conveyance was made or his successor in title is declared to have title to the marshland."

SECTION 305.  G.S. 148-22.1(c) reads as rewritten:

"(c)       The Secretary of Correction, in consultation with the Office of State Personnel, shall set the salary supplement paid to teachers, instructional support personnel, and school-based administrators who are Division of Prison employees and are licensed by the State Board of Education. Superintendent of Public Instruction. The salary supplement shall be at least five percent (5%), but not more than the percentage supplement they would receive if they were employed in the local school administrative unit where the job site is located. These salary supplements shall not be paid to central office staff. Nothing in this subsection shall be construed to include "merit pay" under the term "salary supplement"."

SECTION 306.  G.S. 150B-22.1(b) reads as rewritten:

"(b)      The administrative law judge who conducts a hearing under G.S. 115C-109.6 shall not be a person who has a personal or professional interest that conflicts with the judge's objectivity in the hearing. Furthermore, the judge must possess knowledge of, and the ability to understand, IDEA and legal interpretations of IDEA by federal and State courts. The judges are encouraged to participate in training developed and provided by the State Board of Education Superintendent of Public Instruction under G.S. 115C-107.2(h).G.S. 115C-107.2(g)."

SECTION 307.  G.S. 158-8.1(b1) reads as rewritten:

"(b1)    The members of the State Board of Education appointed to represent the seventh and eighth education districtsOne person appointed by the Superintendent of Public Instruction shall serve as nonvoting ex officio members of the Commission."

SECTION 308.  G.S. 158-8.2(b1) reads as rewritten:

"(b1)    The member of the State Board of Education appointed to represent the first education district One person appointed by the Superintendent of Public Instruction shall serve as a nonvoting ex officio member of the Commission."

SECTION 309.  G.S. 158-8.3(b1) reads as rewritten:

"(b1)    The member of the State Board of Education appointed to represent the fourth education district One person appointed by the Superintendent of Public Instruction shall serve as a nonvoting ex officio member of the Commission."

SECTION 310.  G.S. 158-8.4A reads as rewritten:

"§ 158-8.4A.  State Board of Education members as ex officio commission members.

As a condition on the receipt of State funds, the member of the State Board of Education appointed to represent the designated education district shall serve as a member of the following Commissions:

(1)        Charlotte Regional Partnership, Inc. - The State Board of Education member appointed to represent the sixth education district One person appointed by the Superintendent of Public Instruction shall serve as a nonvoting ex officio member of the Commission.

(2)        Piedmont Triad Regional Partnership. - The State Board of Education member appointed to represent the fifth education district One person appointed by the Superintendent of Public Instruction shall serve as a nonvoting ex officio member of the Commission.

(3)        Research Triangle Regional Partnership. - The State Board of Education member appointed to represent the third education district One person appointed by the Superintendent of Public Instruction shall serve as a nonvoting ex officio member of the Commission."

SECTION 311.  G.S. 158-35(a1) reads as rewritten:

"(a1)     Ex Officio Member. - The member of the State Board of Education appointed to represent the second education district One person appointed by the Superintendent of Public Instruction shall serve as a nonvoting ex officio member of the Commission."

 

effective dates

 

SECTION 312.  Sections 4 through 311 of this act become effective only if the qualified voters approve the constitutional amendments set out in Section 1 of this act. If the voters approve the constitutional amendments, Sections 4 through 311 of this act become effective January 1, 2013.

SECTION 313.  This act is effective when it becomes law.