Legislative Summary

Below is a summary of legislative action affecting education. You may visit the actual bill information on the NC General Assembly website by clicking on the bill. Be sure to check back for additional summaries.

Table of Contents

SB 1741—Modify Appropriations Act of 2005.  (SL 2006-66)

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 SB 1741 Special Provisions 

SUMMARY OF BUDGET BILL—SB1741 (SL 2006-66) 

PART VI.  GENERAL PROVISIONS 

Amend Civil Penalty and Forfeiture Fund Availability

            Section 6.9.(c)  Remittance of moneys to the Fund

This provision lowers the estimates of civil fines and forfeitures from a total of $125.5 million to $95.5 million.

Funds for Enrollment Increases

            Section 6.10. 

This provision directs that the enrollment increases for public education, community colleges, and universities be included in the continuation budget.

Education Lottery Fund Revenue and Appropriations

            Section 6.15. 

This provision allocates the funds from the lottery to class size reduction, Pre-K program, public school building capital fund and scholarships for needy students.

Funds for Increased Fuel Costs

            Section 6.16.

This provision allows the SBE to use funds appropriated for State Aid to LEA’s to cover increases in fuel costs.

PART VII.  PUBLIC SCHOOLS 

Teacher Salary Schedules

            Section 7.1

This provision allocates the teacher salary schedule.  On the average teachers will receive an 8% salary increase and a significant change in the addition of the 30^th step.  In previous years the schedule ended at 29.

School-Based Administrator Salary Schedule

            Section 7.2 

This provision details the salary schedule of principals and assistant principals.  The average increase is 7%.

Central Office Salaries

            Section 7.3 

This provision provides the salary ranges for school administrators and superintendents.  Additionally, permanent, full-time personnel paid from the central office allotment shall receive a 5.5% salary increase.  The provision also restricts the transfer of state funds from other funding categories to central office.

Noncertified Personnel Salary and Fair Minimum Pay

            Section 7.4 

This provision provides that permanent full time non-certified school personnel paid with funds from the State will receive a 5.5% salary increase.  Additionally, beginning July 1, 2006, permanent, full-time non-certified school employees paid from state funds should be aid at least $20,112 per year based on 12 months of service after the 5.5% increase.

Bonus for Certified Personnel at the Top of Their Salary Schedule

            Section 7.5 

This provision provides a one-time bonus of 2% for principals and assistant principals who are at the top of the salary schedule.

Funds to Implement the ABCs of Public Education

            Section 7.6 

This provision provides for the payment of the ABC bonus awards for the 2005-2006 school year.  The SBE is directed to study the differential in bonuses paid to teachers and teacher assistants.

Children With Disabilities

            Section 7.7 

This provision allocates the funds for children with disabilities at $2,972.52 per child.  The 12.5% cap remains in place.

Funds for Academically Gifted Children

            Section 7.8 

This provision allocates the funds for academically or intellectually gifted children at $961.60 per child.  The 4% cap remains in place.

Disadvantaged Student Supplemental Funding

            Section 7.10 

This provision provides the allocation formula for the DSSF fund.  This allotment will now go to all 115 school districts.  The LEA’s that received these funds last year will receive no less funds from this category than they did in 2005-2006.

            Section 7.11  Learn and Earn High Schools

This provision allows Learn and Earn funds to be used for tuition and fees at UNC institutions in which Learn and Earn students are enrolled.  Funds may also be used for textbooks.

            Section 7.12  NC Wise Positions

This provision allows the SBE to use funds for NC WISE to create up to 20 positions and transfer the system from the vendor to DPI.

            Section 7.13  Literacy Coaches

This provision specifies that the 100 literacy coach positions shall be allocated to the 100 schools with the lowest average scores on the 8^th grade reading EOG over the most recent three years for which data is available.

            Section 7.14  Expand LEA Access to Education Value Added
                                 Assessment System (EVAAS)

This provision specifies the criteria for selecting the LEA’s that EVAAS will be expanded.  Funds for EVAAS that were appropriated for 2005-2006 shall not revert.

            Section 7.15  Clarify Definition:  Public School Capital Funds

This provision changes the definition of “effective county tax rate” that is used for the capital fund distribution from the lottery to include any countywide supplemental tax levied for public schools.

            Section 7.16  North Carolina Virtual Public School

This provision established that the NC Virtual Public School (NCVPS) shall report to the SBE and is housed in DPI.  It directs NCVPS to establish course quality standards and to consolidate all e-learning opportunities offered by state-funded entities to public school students.  The SBE shall develop an allotment formula for funding e-learning for 2007-2008.  Funds for this section do not revert.

            Section 7.17  Distance Education

This provision allows the SBE to use money from the State Public School Fund for 2006-2007 to pay additional registration fees for students enrolled in distance education courses.

            Section 7.18  Transfer More at Four Program and Office of School
                                 Readiness to the Department of Public Instruction

This provision transfers the More at Four Program and the Office of School Readiness to DPI. 

            Section 7.19  Administrative Funding for Teaching Fellows
                                 Program

This provision governs the administrative funding of the Teaching Fellows Program.

            Section 7.20  Refund of Local Sales and Use Taxes to a Local School
                                 Administrative Unit

This provision reinstates that public schools may apply for a sales tax refund for the local sales tax paid (2 1/2 cents most places).  It DOES NOT reinstate the state portion of the sales tax refund.

            Section 7.21  Salary Supplement for Math and Science Teachers
                                 Pilot Program

This provision creates a pilot program for three LEA’s to offer up to 10 newly hired teachers in middle or high school to receive a $15,000 salary supplement.

            Section 7.22.  Study the Compensation of School Psychologists
                                  with National Certification

This provision directs the SBE to study the compensation of school psychologists with national certification.

PART IX.  UNIVERSITIES

            Section 9.1  UNC-NCCCS 2+2 E-Learning Initiative

This provision establishes reporting requirements on the UNC-NCCCS 2+2 e-learning initiative.

            Section 9.2  Teacher Education Program Enrollment Plans

This provision sets reporting requirements on UNC concerning teacher education program enrollment plans.

            Section 9.3  North Carolina in the World Project

This provision directs the NC Center for International Understanding to develop plans with the SBE and Department of Commerce to ensure that public K-12 international efforts are focused on key countries and regions of strategic economic interest.

            Section 9.3A  A+ Schools—Budget Technical Correction

This provision makes a technical correction to the 2005 budget by moving A+ schools from the university to public school budget. 

            Section 9.13  Tuition and Contractual Grants for Teaching/Nursing

This provision extends the contractual relationship between in-state private institutions and the State Education Assistance Authority to provide scholarship funds for needy North Carolinians that are licensure students in teaching.  Further, the legislative tuition grants are extended to licensure students in teaching.

            Section 9.15  NC Center for the Advancement of Teaching

This provision moves the NC Center for the Advancement of Teaching under more direct control of UNC-GA.

            Section 9.16  Principal Fellows Program

This provision increases the Principals Fellows Program scholarship from $20,000 to $30,000 in the first year and 60% of an assistant principals plus $4,100 in the second year.

            Section 9.17  Teacher Academy Transfer

This provision transfers the Teacher Academy from UNC to administratively under the SBE.

PART XIX.  DEPARTMENT OF REVENUE

            Section 19.4  Payment of USUB Penalties to Civil Penalty and
                                 Forfeiture Fund

This provision authorizes the Department of Revenue to use unencumbered funds to pay the Civil Fines and Forfeitures Fund for monies paid to local law enforcement from the Unauthorized Substance Tax.

PART XXII.  SALARIES AND EMPLOYEE BENEFITS

            Section 22.17  Salary Related Contributions/Employer

This provision increases the employer contribution rate to the state retirement system from 6.82% to 7.14%.

            Section 22.18  Provide Cost-of-Living Increases for Retirees of the
                                   Teachers’ and State Employees’ Retirement System,
                                   the Judicial Retirement System, and the Legislative
                                   Retirement System.

This provision provides for a 3% COLA increase for members of the Teachers’ and State Employees’ Retirement System.

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2006 Summary of Legislation

PUBLIC BILLS 

HOUSE

HB 836—Memorial Day Program in the Schools.  (SL 2006-75)

This bill directs the SBE to develop recommended instructional programs that enable students to gain a better understanding of the meaning and importance of Memorial Day. The bill further requires all schools, especially schools holding school on Memorial Day, to recognize the significance of Memorial Day.

Effective Date:  7/10/06

HB 1059-State Health Plan Changes. (SL 2006-249)

This bill makes changes to the Teachers’ and State Employees’ Comprehensive Major Medical Plan, clarifies enrollment in the PPO optional program established pursuant to Part 2 of Article 3 of Chapter 135 of the G.S. and authorizes the Executive Administrator and Board of Trustees of the Teachers’ and State Employees’ Comprehensive Major Medical Plan to permit a certain number of local governments option coverage under the plan. 

Effective Date: Various; Section1 expires 7/1/09

HB 1074—Clarify School Admissions Procedures.  (SL 2006-65)

This bill makes a number of changes to the statutes regarding the admissions of students to attend school. The first substantive change requires the State Board of Education and every local school board to ensure compliance with the federal McKinney-Vento Homeless Education Assistance Improvements Act of 2001. The second substantive change amends 115C-366(a3)(1) by adding another acceptable reason for a student to reside with an adult who is a domiciliary of an LEA if the student is not domiciled in that LEA to attend school in the LEA without the payment of tuition.  This acceptable reason is the relinquishment of physical custody and control of the student by the student’s parent or legal guardian upon the recommendation of DSS or the Division of Mental Health. The bill further requires the caregiver adult of a minor student to make educational decisions concerning the student. The bill gives such caregiver adult the same legal authority and responsibility regarding the student as a parent or legal custodian would have even if the parent, guardian, or legal custodian does not sign the required affidavit confirming the requirements of the statute. However, the minor student’s parent, legal guardian, or legal custodian retains liability for the student’s acts. 

In addition, the bill adds the following to the circumstances that make a student eligible for admission to and LEA:

·         A child who is placed in a licensed facility is eligible for admission
without the payment of tuition. If someone other than the student’s parent or guardian is the student’s legal custodian and that person or agency placed or assigned the student to a licensed facility, then that agency or person must provide to the school the name, address and phone number of the individual who has the authority to make educational decision. This person must reside within or be employed by the LEA and must provide to the schools a signed statement that they accept this responsibility. (a6)

·        A student whose parent is a student, employee or faculty member of a
college or university or is a visiting scholar at the National Humanities Center is considered domiciled in the unit. (a7)

·         A student who resides with a legal custodian who is not the student’s parent or guardian and the legal custodian is domiciled in the LEA. (a8)

·        A student who is in a preadoptive home placed by ADD or a licensed child-placing agency. (a8)

Finally, the bill adds definitions to admissions statute for abused or neglected, caregiver adult, educational decision, facility, homeless, legal custodian, licensed facility, McKinney-Vento Homeless Education Assistance Improvements Act of 2001, program participant and unaccompanied youth.

Effective Date:  7/1/06

HB 1151—Planning Time & Duty-Free Lunch for Teachers.  (SL 2006-153)

This bill requires that strategies for improving student performance under school improvement plans to include: (1) a plan to provide a duty-free lunch period for every teacher on a daily basis or as otherwise approved by the school improvement team; and (2) a plan to provide duty-free instructional planning time for every teacher, with the goal of providing an average of at least five hours of planning time per week.

Effective Date:  2007-08 school year

HB 1155–Safe Transportation for School Students. (SL 2006-208)

This bill amends G.S. 115C-247 (purchase of activity buses by local boards) to require each school board that operates activity buses to adopt a policy relative to the proper use of vehicles. The policy must permit the use of activity buses for travel to athletic events during the regular season and playoffs and for travel to other school-sponsored activities. In addition, the bill requires DPI to work with DOT to develop a program for issuing a statewide permit to commercial motor coach companies that are seeking to contract with LEAs for the transportation of students, school personnel and other persons authorized by the school system for school-sponsored trips. This program will replace the current system that requires motor coach companies to meet the varying requirements of each LEA that they contract with for such transportation services. The bill further details the requirements of the new program and requires DPI to report to the Joint Legislative Education Oversight Committee by 11/15/06.  

Effective Date: 8/8/06

HB 1248—Amend Identity Theft Protection Act of 2005.  (SL 2006-173)

This bill amends the public records statute to provide that identifying information shall be confidential and not be a public record. The term “identifying information” includes the following: (1) Social security or employer taxpayer identification numbers; (2) Drivers license, State identification card, or passport numbers (not including drivers license numbers appearing on law enforcement records); (3) Checking account numbers; (4) Savings account numbers; (5) Credit card numbers; (6) Debit card numbers; (7) Personal Identification (PIN) Code (defined as a numeric and/or alphabetical code assigned to the cardholder of a financial transaction card by the issuer to permit authorized electronic use of that FTC); (8) Digital signatures; (9) Any other numbers or information that can be used to access a person’s financial resources; (10) Biometric data; (11) Fingerprints; and (12) Passwords. 

The bill also provides that a record, with identifying information removed or redacted, is a public record if it would otherwise be a public record under G.S. 132 but for the identifying information. The presence of identifying information in a public record does not change the nature of the public record. In addition, if all other public records requirements are met, an agency of the State or it political subdivisions shall respond to a public records request, even if the records contain identifying information, as promptly as possible, by providing the public record with the identifying information removed or redacted. 

Effective Date:  Various

HB 1502—Schoolchildren’s Health Act.  (SL 2006-143)

This bill amends G.S. 115C-12 by redirecting the SBE to address the public health and environment issues in the classroom by studying methods for mold and mildew prevention and mitigation and incorporating recommendation into the public school facilities guidelines as needed. The bill further requires the SBE to establish guidelines for the following:

·      Sealing existing arsenic-treated wood in playground equipment or establishing a timeline for removing existing arsenic-treated wood on playgrounds;

·        Testing the soil on school ground for contamination in other areas
where children may be at particular high risk of exposure;

·         Reducing student exposure to diesel emissions;

·         Integrated Pest Management; and

·         Notification of students’ parents, guardian and school staff of pesticide   use on school grounds.

The bill also amended G.S. 115C-47 and direct the local school boards to adopt policies that address the use of pesticide in schools by doing the following:

·          Requiring the principal to annually notify the students’ parents,
guardians, or staff of pesticide use on school property (notification should be made 72 hours prior to nonscheduled pesticide use on property). Notification requirements do not apply to the application of the following types of pesticide products: antimicrobial cleansers, disinfectants, self-contained baits, and crack-and-crevice gel treatments, and any pesticide products classified by the U.S. EPA as belonging to the U.S. EPA Toxicity Class IV, “relatively nontoxic” and

·         Requiring the use of Integrated Pest Management by October 1, 2011.

In addition, local school boards are:

·      required to prohibit the purchase or acceptance of chromated copper
arsenate-treated wood for future use on school grounds;

·        required to seal existing arsenic-treated wood in playground
equipment or establish a timeline for removing the wood on playgrounds according to SBE guidelines;

·       encouraged to test soil on school grounds for contamination;

·       encouraged to remove from all primary and secondary schools and properly dispose of all bulk elemental mercury, chemical mercury, and bulk mercury compounds used as teaching aids in science classrooms, not including barometers;

·         required to prohibit the future use of bulk elemental mercury, chemical mercury, and bulk mercury compound used as teaching aids in science classrooms, not including barometers; and

·        required to adopt policies to reduce student exposure to diesel fumes.

Effective Date:  10/1/06, except as noted

HB 1723–The Studies Act of 2006. (SL 2006-248)

This bill permits the Legislative Research Commission (LRC) to study the following issues and report back for the 2007 Session:

·          Additional sureties for public construction contracts;

·         Beneficiary designation and dependent survivors of members
of TSERS;

·          Public building contract laws;

·          Impact of ethics legislation on local elected officials;

·          Impact of undocumented immigrants; and

·          Red light camera clear proceeds. 

The bill permits the Joint Legislative Education Oversight Committee to study:

·          Changes in education districts (SBE);

·          Raise the compulsory school attendance age;

·          Child nutrition services;

·          Class size funding formula for children with special needs;

·          Tracking students throughout education;

·          Impact of student mobility on academic performance;

·          Appropriate education for suspended students;

·          Corporal punishment policies;

·          Strategies for targeting educational programs and resources;

·          Workforce preparation in public schools;

·          Information required for school admission/assignment;

·          Joint education leadership team for disadvantaged students;

·          Education facility financing;

·          School psychologists;

·          Civics education;

·          Local school construction financing;

·          Teacher assistant salary schedule;

·          Sales tax exemption for local school units;

·          High school graduation/drop out rate; and

·          Sound basic education. 

The bill allows the Environmental Review Commission to study mercury reduction and education.   

The bill creates a study commission to study the state disability income plan and other related plans.  There are specific seats on this commission for public school representation. 

The bill establishes the Legislative Study Commission on Information Technology to review the newly revised N.C. Education Technology Plan developed by the N.C. State Board of Education. The review shall include best practices for using technology to enhance teaching and learning in N.C. schools. 

The bill directs the Department of Administration to establish a Historically Underutilized Business Task Force to propose criteria and procedures for matters related to the certification of businesses classified as Historically Underutilized. The Task Force will consist of 15 members, one of which will be appointed by NCSBA. 

The bill establishes a Smart Start and Child Care Funding Study Commission to study the funding of the N.C. Partnership for Children. 

The bill allows the N.C. Sentencing and Policy Advisory Commission to study issues related to the conviction and sentencing of youthful offenders aged 16 to 21 years, to determine whether the State should amend the laws concerning these offenders. The Commission shall consult with DPI in conducting the study. 

The bill creates the Study Commission on State Boards, Commissions and Councils to examine the organization, powers, duties, functions and funding of State boards, commissions and councils. 

The bill amends the legislation which established the Local School Construction Financing Study, changing the composition of the Commission from 20 to 19 members and changing the due date of the Commission’s final report to the General Assembly from 2006 to 2007. 

The bill establishes the State and Local Fiscal Modernization Study Commission. The duties of the Commission include examining State and local revenue-sharing and taxing authority and the division of responsibility for providing for infrastructure, public education, Medicaid and other needs and examining the current authority of local government to levy taxes and fees and recommend any changes in such authority. The Commission shall be composed of 30 members, 4 of which hold county or municipal elected office or are county or city managers. 

The bill creates the Legislative Study Commission on the Budget of DPI to perform a zero-based budget review. 

The bill directs the State Board of Education, in cooperation with Division TEACCH and the N.C. Justice Academy to study training for public school personnel designed to facilitate, when needed, effective communication and transfer of information about students with autism and other disabilities between school personnel and school resource officers. 

The bill establishes a Joint Legislative Study Committee on Sex Offender Registration and Internet Crimes Against Children. The duties of the Committee include evaluating whether law enforcement should have an affirmative duty to notify residents, schools or other interested parties that a sex offender lives in the neighborhood 

Effective Date:8/16/06, unless the bill specifically provides otherwise

HB 1845—Permitted Use of Campaign Funds.  (SL 2006-161)

This bill restricts the use of contributions to candidates and candidates’ campaign funds to those related to campaigns and office-holding duties.  It also prohibits the personal use of contributions by candidates and candidate campaign committees.  It strengthens reporting requirements to prevent violations.

Effective Date:  Sections 1 and 5, 10/01/06; Remaining Sections, 1/01/07.

HB 1846–2006 Campaign Finance Changes. (SL 2006-195)

This bill makes various changes to the statutes governing elections and election laws, including the following:

·       Section 1 - Prohibits any entity from making and any candidate
(including a candidate for the school board), committee or treasurer from accepting, any monetary contribution in excess of $50.00 unless such contribution is in the form of a check, draft, money order, credit card charge, debit or other noncash method that can be subject to written verification. Effective Date:1/1/07 

·         Section 1 - Prohibits any contribution in the form of a check, draft,
money order, credit card charge, debits or other noncash method to be made or accepted unless it contains a specific designation of the  intended contributee chosen by the contributor. Effective Date: 1/1/07 

·        Section 4 - Requires the treasurer of each candidate, political
committee or referendum committee to include in the mandatory detailed accounts that he/she keeps the information required by the State Board of Elections on its forms. Effective Date: 1/1/07 

·         Section 5 - Provides that a treasurer shall not be required to report the name, address, or principal occupation of any individual resident of the State who contributes $50.00 or less to the treasurer’s committee during an election (as defined in G.S. 163-278.13). Effective Date: 1/1/07 

·      Section 5 - Requires the State Board of Elections to provide on its reporting forms for the reporting of contributions below the $50.00 threshold. Allows the State Board to require date and amount of contributions below the $50.00 threshold, but to treat differently for reporting purposes contributions below the threshold that are made in different modes and in different settings. Effective Date: 1/1/07 

·         Section 5 - Provides that when a treasurer shows that best efforts have been used to obtain, maintain and submit the information required by Article 22A (Regulating Contributions and Expenditures in Political Campaigns) of Chapter 163 (Election & Election Laws) for the candidate or political committee, any report of that candidate or committee shall be considered in compliance with Article 22A and shall not be the basis for criminal prosecution or the imposition of civil penalties, other than forfeiture of a contribution improperly accepted under Article 22A. Effective Date:1/1/07 

·        Section 5.2 – Prohibits an individual, political committee or other entity from making a contribution anonymously or in the name of another. Also prohibits a candidate, political committee, referendum committee, political party or treasurer from knowingly accepting any contribution made by an individual or person in the name of another individual person or anonymously. Effective Date:1/1/07 

·        Section 6 – Prohibits a candidate, political committee, political party or treasurer from accepting any contribution made by any corporation, foreign or domestic, regardless of whether such corporation does business in N.C., or made by any business entity, labor union, professional association or insurance company. This section does not prohibit a contribution or independent expenditure by an entity that: (1)  has an express purpose promoting social, educational, or political ideas and not to generate business income; (2) does not have shareholders or other persons which have an economic interest in its assets and earnings; and (3) was not established by a business corporation, by an insurance company, by a business entity, including, but not limited to, those chartered under Chapter 55, Chapter 55A, Chapter 55B, or Chapter 58 of the General Statutes, by a professional association, or by a labor union and does not receive substantial revenue from such entities. Substantial revenue is rebuttably presumed to be more than ten percent (10%) of total revenues in a calendar year. Effective Date:1/1/07 

·         Section 7 – Authorizes assistant treasurers (appointed by the
treasurer to act in the name of the candidate, political committee or referendum committee and requires them to be fully responsible for their acts and the acts of any other assistant treasurers. Effective Date:10/1/06 

·    Section 7 – Requires every treasurer of a political committee to participate in training as to the duties of the office within 3 months of appointment and at least once every 4 years thereafter. The State Board of Elections must provide the training in person, through regional seminars and through interactive electronic means. The treasurer may designate an assistant treasurer to participate in the training, if one is named and the treasurer may choose to participate in the training prior to each election in which the political committee involved. All such training is free of charge to the treasurer and assistant treasurer. Effective Date:10/1/06 

·          Section 8 – Requires that all reports due under G.S. 163-278.9
(Statements filed with the Board) be filed by a treasurer or assistant treasurer who has completed all mandatory training on the duties of the office. Effective Date:10/1/06

HB 1896–Protect Children/Sex Offender Law Changes. (SL 2006-247) 

·          Section 11A – Prohibits a person who is on the sex offender
registry  from knowingly residing within 1,000 feet of the property on which a public or nonpublic school or child care center is located.  If the registrant has already established residency, he will not be in violation of this requirement if a school is subsequently located within 1,000 feet. Residency is established when the registrant (1)purchases the residence or enters into a specifically enforceable contract to purchase the residence, or (2) enters into a written lease contract for the residence and for as long as the person is lawfully entitled to remain on the premises, or (3) resides with an immediate family member who established residence in accordance with this subsection. Immediate family member' means a child, sibling, or parent of the registrant.  

·          Section 11B –Makes it a Class F felony for any person on the sex
offender registry from working for any person or as a sole proprietor, with or without compensation, at any place where a minor is present and the person's responsibilities or activities would include instruction, supervision, or care of a minor or minors. 

Effective Date:  Section 11a applies to those that register on or after 12/1/06.  It does not apply to persons who established residency prior to 12/1/06.  Section 11b applies to acts committed after 12/1-06. 

HB 1908—Rewrite Special Ed Laws.  (SL 2006-69)

This bill makes numerous changes to the statutes governing the special education of children with disabilities. A number of the changes are required to comply with federal law (IDEA) and other changes reorganize current law to make it clear, up-to-date and consistent with federal law. Some of the changes include:

·          Clarifying the maximum statutory age for serves as through the age of
21 and for the remainder of the school year if the child has his/her 22^nd birthday during the school year;

·          Clarifying that services do not have to be provided once the child
graduates from high school even if the age limit has not yet been reached;

·          Deleting the State’s broader purpose clause and substituting the
federal purpose;

·          Redefining the categories of disabilities to conform to IDEA and
authorizes additional disabilities if added subsequently under IDEA;

·          Removing pregnancy from the list of disabilities;

·          Adding children ages 3 through 7 with developmental delays as a
category of children entitled to special education and related services;

·          Adding charter schools as a local educational agency;

·          Removing temporary disabilities;

·          Allowing the SBE and the DHHS to enter into an agreement to exempt
some preschool children with disabilities from the requirement they be provided special education;

·          Including language to strengthen the SBE’s monitoring and
enforcement of the State’s provision of special education and related services;

·         Requiring records to be made available to parents, upon their request, earlier than 45 days if needed to prepare for IEP meetings (there is an exception to this requirement if it would be specifically prohibited by court order);

·          Creating a new G.S. 115C-375.5, applicable beginning with the 2006-
07 year, by specifying that pregnant and parenting students must receive the same educational instruction or its equivalent as other students and requiring that local school boards must adopt policies to that end;

·          Creating a new G.S. 150B-22.1 to specify that the timelines and other
procedural safeguards required under IDEA and G.S. Article 9 must be followed in impartial due process hearings that are initiated by a petition filed with OAH (G.S. 150B-22 provides that when a dispute arises between an agency and an individual and resolution through informal procedures is unsuccessful, either party may commence an administrative proceeding, at which time the dispute would become a “contested case”);

·          Amending numerous due process procedures, including:

o         Retaining a two-tiered system with initial due process
complaints going to the Office of Administrative Hearings, with copies going to the SBE and the opposing party;

o        Requiring the SBE and OAH to create a binding MOU to address
statutory and regulatory procedures and timelines applicable under IDEA to due process hearing and to hearing officers’ decisions, and to ensure parties’ due process rights to a fair and impartial hearing;

o         Removing the references to procedural statutes governing
mediators for mediate settlement conferences (G.S. 7A-38.1, G.S. 7A-38-2) in the Mediation statute;

o         Clarifying that mediation may be requested before or after a
petition for a hearing is filed;

o         Authorizing the Exceptional Children’s Division in DPI to assign
an impartial mediator from a list of trained mediators;

o         Providing that the State will bear the costs of the mediation
process, unless the parties opt to use a mediator that is not on the list or if the parties use an alternative method of dispute resolution;

o         Authorizing that when resolutions are reached, the parties
must execute legally binding agreements that are enforceable in any State administrative forum provided for in IDEA;

o         Establishing one year as the statute of limitations for filing a
petition;

o         Removing references to G.S. 150B-23 regarding time periods
tolled as related to the filing of a petition for a hearing and a request for mediation; and

o         Adding federal language requiring a resolution session and its
timelines. 

In addition, the bill directs the SBE to revise its Allotment Policy Manual to require school systems to (i) use their State textbook funds to provide, to the same extent as provided to nondisabled students, textbooks for children with disabilities, and (ii) provide teachers of students with disabilities the same teachers’ editions provided to teachers of nondisabled students (effective July 1, 2006).

Effective Date:  7/10/06, except as noted

HB 2047—Video Service Competition Act.  (SL 2006-151)

The last provision in Section 1 requires cable service providers operating under a state-issued franchise must provide basic cable service free of charge to public buildings located within 125 feet of the provider’s system.  The request must be made in writing by a county or city.  The definition of public building includes public schools.

Effective Date:  1/01/07; Sections 7 and 8, 75 days after 3/31/07.

HB 2699—Vision Care Program Changes.  (SL 2006-240)

This bill makes significant changes to the vision care program.  Children will continue to be required to have a vision screening before entering kindergarten.  This was already required under the kindergarten health assessment.  This vision screening may be performed within 12 months of enrolling in kindergarten.  If a student has not received it by that time they have 180 days to complete it.  If a child enrolls in first grade without having been in rolled in kindergarten then the vision screening is required at that point.  The Governor’s Commission on Early Childhood Vision Care will adopt standards for the vision screening.  If the child fails the vision screening then a comprehensive eye exam is required.  The provider will present to the parent a signed transmittal which the parent is required to submit to the school.  NO CHILD SHALL BE BARRED FROM ATTENDING SCHOOL FOR NOT HAVING THE EYE EXAM. 

Effective Date: 8/13/06

HB 2880—No Prayer for Judgment/Bus Stop Arm Violation. 
                 (SL 2006-160)

This bill prevents a person who is found guilty of passing a stopped school bus from receiving a prayer for judgment continued.

Effective Date:  9/01/06

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SENATE

SB 198–Revise 2006 Budget Act. (SL 2006-221)

This bill provides technical corrections to the 2006 budget. Included in the bill are the following corrections affecting public schools:

·        Section 2A - Directs Futures for Kids, Inc. (a nonprofit corporation which
receives funds through DPI) and the Pathways Program (which is administered by the General Administration of UNC) to present a plan for consolidation of the two programs to the Joint Legislative Education Oversight Committee by March 1, 2007. 

·          Section 5 - Allows the facilities of any community college, constituent
institution of the UNC system and private college or university (licensed in accordance with G.S. 116-15) that comply with applicable State, county and local fire codes for those facilities to be used without modification for public school students in joint or cooperative programs such as middle or early college programs and dual enrollment programs. 

·         Section 6 - Amends the 2005 budget technical corrections bill to reduce
the expansion of the “Future Teachers of North Carolina Scholarship Loan Program” from an additional 75 scholarship loans each year to 50.

Effective Date: 7/1/06

SB 522–Procurement Preference/North Carolina Firms. (SL 2006-210)

This bill requires that a resident firm providing architectural, engineering, surveying, or construction management at risk services for a public project shall be granted a preference over a nonresident firm, in the same manner, on the same basis, and to the extent that a preference is granted in awarding contracts for these services by the other state to its resident firms over firms resident in the State of North Carolina. For purposes of this section, a resident firm is a firm that has paid unemployment taxes or income taxes in North Carolina and whose principal place of business is located in this State. 

Effective Date:  8/8/06

SB 571—School Counselors & Drop Out Prevention/Study.  (SL 2006-176)

This bill directs the SBE to study and report on the role school counselors play in providing dropout prevention and intervention services to students in middle and high school.  The bill further directs the SBE to report on the implementation of the SBE policy delineating the job description and performance criteria for school counselors to the Joint Legislative Oversight committee by November 1, 2007.  

SB 602–Technical Corrections Act-2-2005. (SL 2006-264)

This bill makes technical corrections and conforming changes to the General Statutes including the following:

·        Section 3(a) - Allows any government entity within the State to conduct
raffles in accordance with G.S. 14-309.15 (raffles). 

·          Section 29(h) - Amends G.S. 115C-50 (training of board members) to
provide that the 12 hours of training that all school board members are required to receive annually may be provided by the School of Government at UNC-Chapel Hill (rather than the Institute of Government). 

·          Section 54(a) - Requires DHHS to provide the most current available
information on the use of contraceptives or prophylactics, pregnancy and sexually transmitted diseases, including HIV/AIDS at the beginning of each school year. Effective Date: 2007-08 school year

·          Section 54 (b) - Requires the School Health Education Program to
include instruction on how alcohol and drug use lower inhibitions, which may lead to risky sexual behavior. Effective Date: 2007-08 school year 

·          Section 59 (a) - Relocated the Division of Nonpublic Education from the
Office of the Governor to the Department of Administration. 

·        Section 67(a) - Amends G.S. 143-3.3(g) (Payroll Deduction for Payments
to Certain Employees' Associations Allowed) to permit a political subdivision to allow periodic payroll deductions for a domiciled employees’ association that does not otherwise meet the minimum membership requirements (at least 2,000 members, 500 of whom are employees of the State, a political subdivision of the State or public school employees). 

·          Section 77 – Amends the election laws governing the Asheville City
Board of Education. 

·          Section 78 – Burke County Board of Education local act. Effective Date:
2007-08 

Effective Date: When it becomes law, except as otherwise provided.  

SB 700—Flag/Pledge of Allegiance in Schools.  (SL 2006-137)

This bill requires local boards of education to adopt policies to: (1) require the display of the U.S. and N.C. flags in each classroom when available, (2) require that the recitation of the Pledge of Allegiance be scheduled on a daily basis, and (3) provide age-appropriate instruction on the meaning and historical origins of the flag and the Pledge of Allegiance. These policies shall not compel any person to stand, salute the flag, or recite the Pledge of Allegiance. If flags are donated or are otherwise available, flags must be displayed in each classroom.

Effective Date:  Presented to the Governor on 7/19/06

SB 837—State Health Plan/20-Year Vesting.  (SL 2006-174)

This bill changes the vesting time for person covered by the State Health Plan on a noncontributory basis from 5 years to 20 years.  This only applies to employees that are first employed on or after October 1, 2006.

Effective Date:  New hires on or after 10/1/2006

SB 1216—DSS Disclosure of Information/Abuse/Neglect.  (SL 2006-205)

Section 2 of this bill requires designated agencies (including LEAs) must share with one another, upon request, information that is in their possession that is relevant to any assessment of a report of child abuse, neglect, or dependency or the provision or arrangement of protective services in a child abuse, neglect, or dependency case by a local department of social services pursuant to the authority granted under  N.C.G.S. Chapter 7B or to any case in which a petition is filed alleging that a juvenile is abused, neglected, dependent, undisciplined, or delinquent and shall continue to do so until the protective services case is closed by the local DSS, or if a petition is filed when the juvenile is no longer subject to the jurisdiction of juvenile court.

Effective Date:  Conference Report Adopted

SB 1442—Rutherford Subdiv. Annexations/Referendum/Red Lt. Camera
                 Study. (SL 2006-189)

The second section of this bill permits the Legislative Research Commission to study the impact of the court decisions on clear proceeds as it relates to the red light camera programs.

Effective Date:

SB 1523–2006 Technical Corrections Act. (SL 2006-259)

This bill makes technical corrections and conforming changes to the General Statutes including the following:

·          Section 8(i) –Amends the statute governing the transfer of lottery
revenue into the Public School Building Capital Fund by clarifying that the “effective county tax rate” means the actual county tax rate for the previous fiscal year multiplied by a three-year weighted average of the most recent annual sales assessment ratio studies. 

·          Section 23.1(a) and (b) – Amends the State Personnel System statutes
to require each State agency, department, institution, university, community college and LEA  to verify, in accordance with the Basic Pilot Program administered by the U.S. Department of Homeland Security pursuant to 8 U.S.C. § 1101, et seq, each individual’s legal status or authorization to work in the U.S. after hiring the individual as an employee to work in the U.S. This requirement does not apply to persons under contract or subcontract. Effective Date: Applies to employees hired on or after 1/1/07, except that it applies to employees of LEAs hired on or after 3/1/07. 

·          Section 54(a) and (b) – Amends S.L. 2006-232 Public-Private
Partnerships for Schools to provide that all laws relating to liens on private property apply to private property interests in a capital lease project undertaken by this law. Further amends S.L. 2006-232 to require that all architectural, engineering and survey services shall be procured in a accordance with the provisions of Article 3D of Chapter 143 of the G.S. (Procurement of Architectural, Engineering and Surveying Services) and required design and engineering services shall be performed by an engineer or a licensed architect, to the extent permitted under G.S. 83A-13(b) (Architects, Exemptions). 

 Effective Date: When it becomes law, except as otherwise provided

SB 1738—Long-Term Disability Amendment.  (SL 2006-74)

This bill provides for trial rehabilitation periods for persons who have been receiving long-term disability benefits under the Disability Income Plan of North Carolina to allow those persons to attempt a return to work without being penalized.  This is retroactive to July 1, 2002. The definition of trial rehabilitation is rewritten retroactive to July 1, 2002 and is further rewritten effective July 1, 2007. The bill further moves the effective date for the new definition of long-term disability, which was passed in 2004, to August 1, 2007.

Effective Date:  Various

SB 2009—Public Private Partnerships.  (SL 2006-232)

This bill amends Article 37 of Chapter 115C by adding a new section, 115C-531, to allow school boards to enter into capital leases of real or personal property for use as school building or school facilities. The bill defines the term capital lease as a capital lease as defined by generally accepted accounting principles, regardless of how the parties describe the agreement. The capital lease may relate to an existing building or a new school building to be constructed and the term of the lease, including renewal periods, must not exceed 40 years from the date that the school board expects to occupy the property. Subdivisions (c) and (d) of G.S. 115C-521 (Erection of school buildings) do not apply to a capital lease entered into under this law. Also included in the bill are separate provisions addressing the following: (1) Construction, repairs and renovation; (2) Nonsubstitution clauses; (3) Deficiency judgments/ Pledges of taxing power; (4) Budgetary accounting; (5) Approval of the Local Government Commission; (6) Agreements on student assignment (which capital leases entered into under this law are prohibited from containing); and (7) Lien laws. 

The bill further amends Article 37 of Chapter 115C by adding a new section, 115C-532, which applies to build-to-suit capital leases. The bill defines a build-to-suit capital lease as a capital lease that provides for the construction of new facilities or the renovation of existing facilities by a private developer, the cost of which is estimated to be greater than $300,000. The build-to-suit capital lease (“build-to-suit lease”) may include contractual provisions by the private developer regarding the provision of products, services and guaranties related to a facility that is the subject of a capital lease. A school board may also enter into a separate agreement or series of related agreements regarding the provision of products, services and guaranties related to a facility that is the subject of a capital lease, if all agreements are approved by the board of county commissioners in connection with the approval of the build-to-suit lease.  Before entering into a build-to-suit lease pursuant to this law, the school board must adopt a resolution. Before adopting the resolution, the school board must publish a notice of its intent to enter into a build-to-suit lease at least 10 days in advance of the date of the meeting at which the action is considered and in a newspaper having general circulation within the geographic area served by the school board. The bill details what must be included in the notice and the resolution. In addition, the bill:

·          Provides additional requirements regarding design services;

·          Provides additional requirements regarding construction services;

·         Permits school boards to enter into predevelopment agreements with  a private developer;

·       Permits school boards to sell, lease, or otherwise transfer real or personal property to any private developer for construction, repair or renovation of a school facility under a build-to-suit lease entered into pursuant to this law;

·     Permits the inclusion of additional lease terms imposing certain responsibilities on the private developer or any identified affiliated entity;

·         Requires a private developer to provide an irrevocable letter of credit for the benefit of laborers and materialmen in an amount not less than 5% of the total cost of the improvements which are the subject of the build-to-suit lease and to maintain the letter of credit throughout the construction of the project and for the succeeding 6 month period; and

·         Amends G.S. 143-129(e) by adding a new subdivision exempting build-to-suit capital leases with a private developer from the formal bidding procedures required for the letting of public contracts.

Effective Date – 8/12/06; Sunsets 7/01/2011

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LOCAL BILLS:

    HOUSE 

HB 1824—School Buses Used for BikeWalk Virginia.  (SL 2006-8)

This bill permits the Roanoke Rapids Graded School district to use school buses for the BikeWalk Virginia.

Effective Date:  6/25/06-6/28/06

HB 1864—Ensure Fair Competition in School Athletics.  (SL 2006-23)

This bill requires the NCHSAA to create a small school athletic conference if certain criteria are met.  The act only applies to Dare, Hyde, Martin, Tyrell and Washington Counties.

Effective Date:  2006-2007 School Year

HB 2358—Use of Activity Buses for Local Events. (SL 2006-3)

This bill allows the Haywood County Board of Education to use activity buses for the North Carolina International Folk Festival, Inc.

Effective Date:  6/1/06

HB 2405—Rutherford Co. Board of Education Membership.
                  (SL 2006-101)

This bill expands the membership of the Rutherford County Board of Education by adding an at-large member and allows the chairman to vote on all issues before that board.

Effective Date:  7/12/06

HB 2406—Rutherford County Board of Education Filing.  (SL 2006-92)

This bill changes the candidate filing period deadline from the 1^st Friday in June to that of the local district board of supervisors of a soil and water conservation district.

Effective Date:  7/10/06

HB 2527—Cherokee School Attendance.  (SL 2006-13)

This bill overrides a decision by the Cherokee County Board of Education and requires the Board of Education to allow any student who was not residing in Cherokee County and attended the Cherokee County Schools to attend the Cherokee County Schools without payment of tuition until the student graduates or leaves.

Effective Date:  6/19/06

HB 2591—Bladen Co. Schools May Convey Property.  (SL 2006-132)

This bill allows the Bladen Co. Schools to convey the Natmore School to the Lower Bladen Community Group with or without monetary consideration.

Effective Date:  7/19/06 

   SENATE 

SB 350–2006 Various Local Acts. (SL 2006-171) 

Section 6 of this bill repeals term limits for the Scotland County Board of Education. 

Effective Date:  Must be pre-cleared by the US Justice Department.

SB 1896—Affordable Housing for Teachers/Bertie Co.  (SL 2006-61)

This bill authorizes the Bertie Board of Education to provide affordable rental housing for teachers and other employees of the Bertie County School System.

Effective Date:  7/6/06

SB 1903—Hertford Schools/Rental Housing.  (SL 2006-86)

This bill authorizes the Hertford Board of Education to provide affordable rental housing for professional staff of the school system with priority given to teachers.

Effective Date:  7/10/06

SB 1933—Nash-Rocky Mount/Roanoke Rapids School Boards. 
                 (SL 2006-87)

This bill makes changes for the installation date for members of the Nash/Rocky Mount Board of Education when there is a runoff.  The bill also changes the election of the Board of Trustee for the Roanoke Rapids Graded School District.

Effective Date:  7/10/06

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