This bill requires that when a change of placement occurs and a student is to be placed on homebound instruction under IDEA discipline regulations, the student’s IEP team must meet and determine that homebound instruction is the least restrictive alternative environment for that student to meet their IEP goals before homebound instruction can be assigned. Additionally, the IEP teams must reevaluate monthly when a child is on homebound instruction.

Effective Date: 8/23/07

Statute: 115C-107.7

HB 17 – STUDY SERV. FOR STD. W/ DISABILT. IN HIGH SCHOOL (SL 2007-295)

This bill requires the Department of Public Instruction to conduct a study of the delivery of education and other services to students with disabilities at the high school level.

Effective Date: 7/28/07

HB 18 – DEFINE RESIDENCE FOR STUDENT W/SPECIAL NEEDS (SL 2007-292)

This bill defines the term residence for special education students for tuition free enrollment purposes to be the same criteria as for regular education students under GS 115C-366. The bill makes conforming changes to three other statutes. This does not apply to children who were enrolled on the last day of school for the 2006-2007 school year or were enrolled and attended school on August 1, 2007 for the 2007-2008 school year as long as they live within and are continuously enrolled in the LEA.

Effective Date: 7/28/07

Statute: 115C-106.3, 106.2(a), 107.3(a), 107.6(b)

HB 20 HOMEBOUND INSTRUCTION STANDARDS (SL 2007-429)

This bill would add definitions for the terms “educational services” and “homebound instruction” to 115C Art. 9, Education of Children with Disabilities. Educational services would be defined to include: (1) Necessary instructional hours per week determined by IEP team (2) Instruction delivered by a teacher appropriately qualified; (3) Related services included in the student IEP; (4) Behavior Intervention services. Homebound instruction would be defined as educational services provided to a student outside the school setting.

Effective Date: 8/23/07

Statute: 115C-106.3

HB 24 – SMOKING IN STATE GOVT. BUILDINGS/PROHIBITION (SL 2007-193)

Section 2 of the bill allows local government to adopt an ordinance, law, or rule restricting smoking in a number of locations and events including public schools, school facilities, on school campuses, at school-related or school-sponsored events, in or on other school property, public school buses, or at day care centers. Such restrictions may be imposed by local boards having ownership or jurisdiction over the building, campus, event, property, or vehicle. This subsection is repealed on August 1, 2008, when SB 1086 becomes law.

Effective Date: 6/29/07

Statutes: G.S. 130A-491, 492, 493, 493.1, 494, 498, 143-601

Sunset: 8/1/08 for school portion

HB 26 -- STUDY TEACHER PREPARATION PROGRAMS (SL 2007-284)

This bill directs the Board of Governors, in consultation with the State Board of Education, to study the effectiveness of the current teacher education programs in preparing teachers to educate students with disabilities.

Effective Date: 7/27/07

HB 63 – PROPERTY TAX – SCHOOL CAPITAL LEASES (SL 2007-477)

This bill excludes from property tax, real or tangible personal property that is subject to a capital lease and is used as a public facility.

Effective Date: Taxes imposed for taxable years beginning 7/1/07

Statutes: G.S. 105-275

HB 150 – EVERY CHILD READY TO LEARN (SL 2007-173)

This bill amends the law regarding the kindergarten start date to require that a child reach the age of five on or before August 31st of that school year in order to be eligible to enroll in public school. The previous cut off was October 16th. The bill maintains the exceptions to the age requirement for (i) a child who has attended school in another state in accordance with the laws and rules of that state prior to becoming a resident of North Carolina, and (ii) a child who reaches the age of four on or before April 16 and is deemed “gifted” and sufficiently mature to enter kindergarten.

Effective Date: 2009-2010 school year.

Statute: 115C‑364

HB 183 – BAN CELL PHONE USE BY SCHOOL BUS DRIVERS (SL 2007-261)

This bill would make it a Class 2 misdemeanor for drivers to use mobile telephones while operating school buses or providing contracted transportation services for schools. The use of the mobile phone for the sole purpose of communicating in an emergency situation would not be prohibited by statute. Emergency situation would be defined as a situation where medical concerns, unsafe road conditions, public safety concerns, or mechanical failure would create a risk of harm for the operator or passengers of the vehicle.

Effective Date: 12/1/07

Statute: 20-137.4

HB 232 STRATEGIES FOR RECOVERING TEXTBOOK COSTS (SL 2007-275)

The bill directs the Joint Legislative Education Oversight Committee to study strategies for recovering costs due to damaged and lost textbooks.

Effective Date: 7/27/07

HB 265 – ESTABLISH HIGH RISK POOL (SL 2007-532)

This bill established the North Carolina Health Insurance Risk Pool, whose purpose is to enable individuals with high-risk health conditions to obtain health insurance coverage at premium rates that are more affordable than currently available rates. Subscribers will pay 65 percent of the costs through their premiums. Premiums will be set at 150 to 200 percent of what a healthy person would pay for private insurance. In addition, the Teachers’ and State Employee’ Health Plan will pay an annual surcharge of $1.50 per active employee member and their dependents covered under the Plan per year. That surcharge would generate approximately $700,000 per year into the fund. The Health and Wellness Trust Fund will provide $5,000,000 in the first year. Enrollment will start no later than January 1, 2009.

Effective Date: Majority of bill 8/31/07

Statute: G.S. 105-228.5B

HB 349 LOCAL SCHOOL BOARD REMOVAL (SL 2007-498)

This bill repeals the statutory provision that allows the State Board of Education to initiate the process of removing a local school board member.

Effective Date: 8/30/07

Statute: G.S 115C-39(a)

HB 454 – IDENTITY THEFT (SL 2007-534)

Section 2 of this bill amends the statute regarding publication of personal information. It shall be a violation for any person to knowingly broadcast or publish on radio, television, cable television, in any writing of any kind, or on the Internet, the personal information of another with actual knowledge of the person previously objecting to the disclosure. Government, and government subdivisions and agencies are excluded from this requirement.

Effective Date: 12/1/07 for acts committed on or after that date

Statute: G.S. 75-66

HB 485 – INFO. ON LAWFUL ABANDONMENT (SL 2007-126)

This bill requires local school boards to adopt policies to ensure that students in grades 9 – 12 receive information annually on the manner in which a parent may lawfully abandon a newborn baby with a responsible person.

Effective Date: Policies must be adopted by 8/1/08 for the 2008-09 school year.

Statute: G.S. 115C-47

HB 488 ALTERNATE HEARING BEFORE SCHOOL REASSIGNMENT (SL 2007-501)

This bill adds that local boards of education may designate a hearing officer to hear reassignment appeals. However, if a hearing officer is offered, a panel of at least two school board members must also be given as an option. The parent would then choose which, hearing officer or school board member panel, would conduct the hearing. The recommendations are then sent to the board for final determination. The bill also changes how the local board provides notice of the decision to mail, telephone, telefax, email, or any other method reasonably designed to achieve notice.

Effective Date: 8/30/07

Statute: 115C-369

HB 536 – ENHANCED TRAINING FOR SCHOOL ADMINISTRATORS (SL 2007-517)

This bill directs the State Board of Education to adopt new standards for school administrator preparation programs by July 1, 2008. The institutions of higher education are directed to redesign their school administrator preparation programs according to the new standards and report to the State Board of Education on the redesign of their programs by July 1, 2009.

Effective Date: 7/1/08 and7/1/09 respectively

Statute: 115C-284

HB 550 – MODIFY SCHOOL EMPLOYEE CONFIDENTIALITY LAW (SL 2007-192)

This bill amends the confidentiality of school personnel files law by providing that information relevant to criminal misconduct may be made available to law enforcement officials and the district attorney in connection with the investigation of: (1) Any report made pursuant to G.S. 115C‑288(g); or (2) A report from anyone regarding arson, theft, embezzlement, or misuse of any personal or real property owned by the local board of education. Statements or admissions made by the employee relating to those reports will not be admissible in any subsequent criminal proceedings against the employee. The bill requires that the employee be given five days prior written notice of the disclosure and the opportunity to apply to district court for an in camera review of the records to determine if the information is relevant to possible criminal misconduct.

Effective Date: 6/29/07

Statute: 115C-321

HB 583 – MODIFY COM. COLL. LATERAL ENTRY PROCESS (SL 2007-166)

This bill eliminates the following requirements for teachers: (1) Have completed a bachelor degree at least 5 years before undertaking study; (2) Hold a lateral entry teaching certificate and be employed as a teacher in a local school administrative unit.

Effective Date: 7/1/07

Statute: 115C-296(c1)

HB 654 – CLARIFY DEFINITION OF RETIREMENT (SL 2007-143)

This bill clarifies that service as a member of a school board shall not be considered as employment under the definition of “retirement” under the Teachers’ and State Employee’ Retirement System (TSERS).

Effective Date: 6/29/07

Statute: 135-1(20)

HB 705 -- SCHOOL FOOD SERVICE EQUIPMENT/LEASE PURCHASE (SL 2007-519)

This bill permits local boards of education to enter into lease purchase or installment purchase contracts for food service equipment.

Effective Date: 8/31/07

Statute: 115C‑528(a)

HB 714 – 2007 BUDGET TECHNICAL CORRECTIONS (SL 2007-345)

Section 5.2 clarifies S.L. 2007-323 (Page F-9 Item 36 on the Money Report) that funds appropriated for Communities in Schools shall be used by that nonprofit corporation to assist with the establishment and development of local student support programs designed to prevent academic failure and dropouts. These funds may be provided to local programs as “seed money” for both new and established programs and funds from its cash reserves may be used for additional grants to local programs.

Section 5.3 changes the charge of the Legislative Study Committee on Public School Funding Formulas outlined in Section 7.31 of S.L 2007-323 by adding the following new topics of study: (1) School Capital Fund; (2) Lottery School Construction Formula; and (3) Number of school systems funded per county. The Committee is also directed to study the State Board of Education’s model for projecting average daily membership and focus on how well the model projects average daily membership in rapidly growing LEAs with a highly mobile population. The Committee is directed to report its findings to the 2008 Regular Session.

Section 9.2 directs the Department of Administration to study availability and utilization of minority and women owned businesses in contracts for all aspects of construction projects including any projects in which state funds are used including public school construction projects that utilize state funding.

Sections 11 and 12 of this bill make corrective changes in references to the State Health Plan in order to allow the Revisor of Statutes to follow directives in connection with the July 1, 2008 changes to the State Health Plan.

Effective Date: Section 9 is effective 7/1/07, Section 11 is effective 10/1/07, and all other sections are effective 8/9/07.

Statutes: G.S. 120-19, 135-39.6

HB 735 -- CONSTRUCTION PLAN REVIEW (SL 2007-303)

This bill increases the building size threshold from 10,000 to 20,000 square feet for local government buildings including schools whose plans require approval by the Commissioner of Insurance before construction may begin.

Effective Date: 10/1/07

Statute: G.S. 58-31-40

HB 779 – INCREASE CONTRIBUTORY DEATH BENEFIT (SL 2007-496)

This bill increases to $10,000 the contributory death benefit payable on behalf of retired members of the Teachers’ and State Employees’ Retirement System.

Effective Date: Deaths occurring on or after 7/1/07

Statutes: G.S. 135-5(l), 128-27(l4)

HB 851 – TEACHER ASSISTANT SCHOLARSHIP FUND (SL 2007-457)

This bill changes one the requirements for the teacher assistant scholarship fund by requiring the applicant to be enrolled in an accredited institution of higher education in North Carolina and pursuing teaching licensure.

Effective Date: 8/28/07

Statute: 116-209.35

HB 915 – OFFER SIGN LANGUAGE IN SCHOOLS AND COLLEGES (SL 2007-154)

This bill directs the State Board of Education to encourage public high schools to offer American Sign Language as a modern foreign language. The bill also directs the State Board of Education to adopt and implement standards for teacher certification as an American Sign Language teacher. The State Board of Community Colleges and Board of Governors of The University of North Carolina are also directed to encourage their colleges to offer courses in American Sign Language. The three entities will report on the implementation of this legislation to Joint Legislative Oversight Committee by 10/1/07.

Effective Date: 6/29/07

Statutes: 115C-81.3, 116-11

HB 956 – RETIRED TEACHERS RETURN TO WORK (SL 2007-326)

This bill extends the law on re-employing retired teachers. In order to qualify, teachers retiring after October 1, 2007, must meet one of the following criteria: (1) 30 years of service with no age restrictions; (2) Age 60 with 25 years of service; (3) Age 65 with 5 years of service. There still exists the required six month break in service before re-employment. All retirees employed under the previous criteria are grandfathered under the old law. The bill expires on October 1, 2009.

Effective Date: Applies to those that retire after 10/1/07

Statutes: G.S. 135-3(8), 115C-325(5a)

HB 966 – ALTERNATIVE TEACHER SALARY PLANS/PILOT PROGRAM (SL 2007-453)

This bill directs the State Board of Education to establish a pilot program authorizing the implementation of alternative teacher salary plans in up to five local school administrative units. The plan must also be approved by the secret vote of the majority of teachers who will directly participate in the plan.

Effective Date: 8/27/07

HB 1060 – LOCAL GOVERNMENT SURPLUS PROPERTY DONATIONS (SL 2007-430)

This bill allows a city to donate to another governmental unit, including LEA, any personal property (supplies, materials, and equipment) that the governing board deems to be surplus, obsolete, or unused. The governing board of the city or county shall post a public notice at least five days prior to the adoption of a resolution approving the donation. The resolution shall be adopted prior to making any donation of surplus, obsolete, or unused personal property.

Effective Date: 8/23/07

Statute: 160A-280

HB 1111 – CLARIFY STATE GOVERNMENT ETHICS ACT (SL 2007-348)

Section 16 of the bill provides exemptions from the Chapter 120C Lobbying Laws. Duly elected or appointed officials or employees of a school district acting within their duties of office are exempt from the lobbying chapter (2006 bill). This section provides an exemption from the laws for city and county attorneys but not school board attorneys.

Effective Date: 8/09/08

HB 1308 – LIFETIME CERT. AFTER TEACHING 50 YEARS (SL 2007-478)

This bill directs the State Board of Education to provide for a lifetime certification for a teacher after fifty years of teaching.

Effective Date: 8/29/07

Statute: G.S. 115C-296(b)

HB 1347 – FALSE REPORT/MASS VIOLENCE (SL 2007-196)

This bill amends the law to make it a Class H felony to communicate (by mail, phone, text message, fax, electronic mail, or other electronic means) a false report that an act of mass violence is going to occur on educational property or at an activity sponsored by a school. Mass violence is defined as physical injury that could lead to permanent injury or death of two or more people.

Effective Date: Applies to offenses committed on or after 12/1/07

Statute: G.S. 14-277.5

HB 1357 – MILITARY CHILDREN MAY ATTEND PUBLIC SCHOOLS (SL 2007-283)

This bill allows a child to attend schools free of tuition in a LEA in which the child is not domiciled if the child resides in the LEA because the child’s parent or guardian has been called to active military or National Guard duty.

Effective Date: 7/27/07

Statute: 115C-366(a)(3)

HB 1415 SHORT TERM DISABILITY/MILITARY SERVICE (SL 2007-325)

Section 2 of the bill changes the State’s long-term disability plan by requiring a participant to qualify for social security disability within 36 months. If the person has not qualified within the 36 months they are no longer able to receive disability under the State plan. If a person later qualifies (i.e. case was still pending) for social security disability then the person would be reinstated in the State plan. Section 3 makes the same requirements apply to the Optional Retirement Program.

Effective Date: Sections 2 and 3 become effective 8/1/07 (only apply to persons with less than 5 years of membership service as of 7/31/07)

Statutes: G.S. 135-105(a), 135-106, 135-107

HB 1449 – 4-YEAR TERMS/TEACHING STANDARDS COMM (SL 2007-174)

This bill changes from two years to four years the term of service for members of the North Carolina Professional Teaching Standards Commission. The terms would be staggered and would begin September 1.

Effective Date: 7/5/07

Statute: 115C-295

HB 1464 – SCHOOL ABSENCES EXCUSED/LEG. AND GOV. PAGES (SL 2007-186)

This bill directs the State Board of Education to adopt rules to provide for excused absences for a student’s participation in a valid educational opportunity such as a service as a legislative page.

Effective Date: Beginning with 2007-2008 school year

Statute: 115C-379

HB 1471 – CHARTER SCHOOL EMPLOYMENT BENEFITS ELECTION (SL 2007-464)

This bill allows the Board of Directors of the Orange Charter School and Bethany Community Middle School to elect to participate in the Teachers’ and State Employees’ Retirement System and Major Medical Plan. The bill also requires all teachers to mutually agree. The election to participate must take place within 30 days of the effective date of the act.

Effective Date: 8/28/07.

HB 1473 – 2007 APPROPRIATIONS ACT (see above)

HB 1519 – MODIFY SCHOOL FUNDING MEDIATION LAW (SL 2007-92)

The bill modifies 115C-431(d) by (1) removing language requiring that if an appeal is made and results in a delay, a sum must be deposited by the county commissioners with the LEA; (2) adding that the notice of appeal must be given within 10 days after entry of judgment; (3) adding final judgment is binding on the parties at the conclusion of the appeals process (this gets rid of the mootness argument which was decided in Cumberland v Cumberland 113 NC App 164 (1993)); and (4) payment of final judgment must not be considered or used to reduce subsequent fiscal year appropriations to the LEA.

Effective Date: 6/20/07

Statute: G.S. 115C-431

HB 1546 SCHOOL BUS ENDORSEMENT LICENSE EXPIRATION (SL 2007-350)

This bill requires a commercial drivers license with a carrying passengers (P) and school bus (S) endorsement to expire three years after it is issued if the licensee is certified to drive a school bus in North Carolina.

Effective Date: 9/13/07, and applies to new and renewal licenses issued on or after that date.

Statute: G.S. 20-7(f)(2)

HB 1593 – STATE HEALTH PLAN/PLAN YR. CHANGE (SL 2007-521)

This bill directs the Executive Administrator of the Teachers' and State Employees' Comprehensive Major Medical Plan to evaluate the actuarial, administrative, financial, operational, and plan member impact of converting the Plan's benefit plan year to a calendar year basis from a fiscal year basis. Not later than April 1, 2008, the Executive Administrator shall report his findings and recommendations to the Committee on Employee Hospital and Medical Benefits and the Fiscal Research Division.

Effective Date: 8/31/07

HB 1739– NOTICE AND RIGHTS REGARDING SCHOOL SUSPENSION AND EXPULSION (SL 2007-466)

This bill requires the principal or his/her designee: to notify parents or guardians when their children are suspended or expelled from school, including suspensions less than 10 days. Such notice must be given by certified mail (long terms and expel only), telephone, fax, e-mail or any other method reasonable designed to achieve actual notice. The bill also allows students placed on short-term suspensions the opportunity to take their textbooks home for the duration of the suspension, to have access to homework assignments and to take any quarterly, semester or grading period exams missed during the suspension period.

Effective Date: 8/29/07 and applies beginning with the 2007-08 school year.

Statute: G.S 115C-391

HB 1743 – ELECTION AMENDMENTS (SL 2007-391)

Section 27 of this bill requires that in order for a person to be eligible for appointment to fill a vacancy in any elected office (state or local), he or she must have been qualified to vote as an elector for that office if an election were held on the date of appointment.

Effective Date: Applies to appointments made on or after 8/19/07

Statute: GS 128-7.2

HB 1912 – SCHOOL BUS RETROFIT IN NONATTAINMENT AREAS (SL 2007-465)

This bill provides funds to retrofit school buses in order to reduce diesel emissions in counties located in nonattainment or maintenance areas for ozone or particulate matter.

Effective Date: 7/1/08 for federal funds and 8/28/07 for remainder of act.

HB 2044 – 2007 CONTINUING BUDGET AUTHORITY (SL 2007-145)

This bill authorized the Director of the Budget to continue expenditures for the operation of government at the level in effect on June 30, 2007 (Section 1). Vacant positions subject to proposed budget reductions are not to be filled (Section 1). Specifically states that teachers and other school employees paid on a salary schedule are not authorized to move up a step (Section 3). The State's employer contribution rates budgeted for retirement and related benefits for the 2007‑2008 fiscal year remain the same as they are on June 30, 2007 (Section 4). If either budget bill states that funds do not revert then they do not revert (Section 5). The bill extended the sunset on Retired Teachers Return to Work until August 1, 2007 (Section 7). The bill also appropriated money from the General Fund ($162,400,000) for the 2007-08 school year to fully fund increases in average daily membership in public schools (Section 8). Section 8 is repealed in Sec 7.40 of HB 1473 (SL 2007-323).

Effective Date: 6/29/07

Expiration Date: 11:59 p.m. 7/31/07

SENATE

SB 8 – EXPAND SAFE ZONES/SCHOOLS, PARKS, CHILD CTRS (SL 2007-375)

This bill increases the boundary limit, from 300 feet to 1,000 feet around specified locations, including schools, where the penalty for drug sales would be classified as a Class E felony. It would also include in these “safe zones” all property that is a public park.

Effective Date: 12/1/07

Statute: G.S. 90-95

SB 211 – ELECTRONIC SIGNATURES/PUBLIC AGENCIES (SL 2007-119)

This bill clarifies that public agencies may use, as well as accept, electronic signatures.

Effective Date: 6/27/07Statute: G.S. 66-58.4

SB 260 – SCHOOLS PROVIDE INFO ON CERVICAL CANCER (SL 2007-59)

This bill requires local boards of education to ensure schools provide parents and guardians with information regarding cervical cancer, cervical dysplaysia, human papillomavirus and the vaccines available to prevent these diseases. The information must be provided to parents of children entering grades 5-12 at the beginning of each school year. The Department of Health and Human Services shall provide sample materials to LEAs.

Effective Date: 7/1/07; Year round schools must distribute the information no later than 9/1/07

Statutes: 115C-47, 238.29F, 548, 556, and 565

SB 320 – STATEWIDE CERTIFICATION OF HUBS (SL 2007-392)

This bill requires the Secretary of Administration to develop and administer a statewide uniform certification program for Historically Underutilized Businesses (HUBS) doing business with the State and political subdivisions including local school boards. The redesigned certification and database by the Secretary of Administration shall be complete by 3/31/08. The State and political subdivision shall only use businesses in the database for minority business purposes by 7/1/09.

Effective Date: Program must be enacted no later than 3/31/08; governmental entities must use to database by 7/1/09.

Statutes: 143-48.4, 143-28.4

SB 492 – POLITICAL SUBDIVISIONS/CONTRACTS EXEMPTION (SL 2007-94)

This bill exempts political subdivisions of the State, which include public schools from purchases of apparatus, supplies, materials, or equipment from contracts established by the United States of America or any federal agency, if the contractor is willing to extend to a political subdivision of the State the same or more favorable prices, terms, or conditions as established in the federal contract. The statute previously dealt with State contracts only.

Effective Date: 6/20/07

Statutes: G.S. 143-129(e)

SB 613 – 2007 TECHNICAL CORRECTIONS ACT (SL 2007-484)

Section 27 is a technical correction to validate certain notorial acts performed between 10/31/06 and 6/30/07 for local government agencies.

Section 31.7 clarifies that the definition of local government in Section 2 HB 24 (SL 2007-193) Smoking in State Govt. Buildings/Prohibited to include authorities or bodies created by joint resolution.

Section 7 amends G.S. 20-309 and 311 to make it clear that the clear proceeds of fines and forfeitures collected by the Department of Transportation go to the Civil Penalty and Forfeiture Fund.

Section 14 changes an erroneous statutory reference for the reimbursement rate for the North Carolina Professional Teaching Standards Commission.

Effective Date: 8/30/07, unless otherwise noted

Statutes: G.S. 130A-498, G.S 20-309, 311, G.S. 115C-295.1(f)

SB 659 – OFFICIALS FORFEIT PENSIONS FOR FELONIES (SL 2007-179)

This bill requires that elected officials who are members of any state retirement system forfeit their pensions upon conviction of a state or federal offense involving public corruption or a felony violation of election laws. If a member has not vested in the System on July 1, 2007, and is convicted of a listed offense for acts committed after July 1, 2007, that member shall forfeit all benefits under the System. If a member has vested on July 1, 2007, and is convicted of listed offense committed after July 1, 2007, that member is not entitled to any creditable service that accrued after July 1, 2007. No member shall forfeit any benefit or creditable service earned from a position not as an elected government official.

Effective Date: 7/1/07, and applies to offenses committed on or after that date.

Statutes: 120-4.33, 120-4.12, 128-38.4, 128-26, 135-18.10, 135-4, 135-75.1, 135-56

SB 720 – OPEN ENROLLMENT/CONTRIBUTORY DEATH BENEFIT (SL 2007-388)

This bill allows a contributory death benefit open enrollment period from February 1, 2008 through May 31, 2008, for retirees of the Teachers’ and State Employees’ Retirement System.

Effective Date: 8/19/07

SB 772 – SCHOOL FINANCE FIDELITY BONDS (SL 2007-85)

This bill sets the minimum surety bond amount for a school finance officer at $50,000. This is the same requirement imposed upon finance officers for other units of local government.

Effective Date: 7/1/08

Statutes: 115C-442(c)

SB 812 – STUDY SAFETY RESTRAINTS ON SCHOOL BUSES (SL 2007-191)

This bill requires the North Carolina Child Fatality Task Force to study and analyze the feasibility of the use of seat belts by passengers on school buses and school activity buses. In conducting the study, the Task Force is directed to consider whether or not seat belts are necessary to enhance safety, examine costs associated with requiring seat belts on buses, and determine the manner in which the local boards of education may enforce their use. The Task Force shall report its findings and recommendations to the General Assembly on or before May 1, 2008.

SB 854 – AMEND PRIVATE PROTECTIVE SERVICES ACT (SL 2007-511)

Sections 4 and 5 of this bill requires security guard and patrol, armored car, special limited guard and patrol or any licensee who carries a firearm to obtain and maintain liability insurance. Section 7 makes it unlawful for any person to carry a firearm unless the person has registered with the Protective Services Board. Section 12 amends the criminal statute prohibiting weapons on educational property for armed armored car service guards and armed courier service guards. The section creates an exemption for situations where the guards are discharging their official duties and have the permission of the college or university.

Effective Date: Section 12 8/30/07, Sections 4 and 5 10/01/07

Statutes: G.S. 74C-10, 11, 12, G.S. 14-269.2

SB 880 – BAIL BONDS/AMEND FORFEITURE REQUIREMENT (SL 2007-105)

This bill broadens the reasons a forfeiture of a bail bond shall be set aside if the defendant is (1) Incarcerated anywhere in the United States (jail or federal detention center in or out of state) on the day the defendant was required to appear in court and failed to do so; (2) The district attorney was notified of the defendant’s incarceration; (3) The defendant remains incarcerated for at least 10 days after the DA’s receipt of the notice (as evidence by written notice served by hand delivery/certified mail). The bill also allows for a court to impose monetary sanctions against a surety who attached fraudulent documentation to the motion to set aside the forfeiture, unless the court finds the failure to attach required documentation was unintentional.

Effective Date: 10/01/07, and applies to forfeitures on or after that date

Statute: 15A-544.5 and 544.3(b)(9)

SB 914 – TEACHERS CONVERT PERSONAL LEAVE TO SICK LEAVE (SL 2007-378)

This bill allows teachers to convert excess personal leave days into sick leave days. Currently, teachers may accumulate up to five personal leave days. Under this bill, any excess personal leave days (above five) earned by June 30 would be converted to sick leave on July 1. Additionally, the bill would require all teacher requests for personal days to be granted automatically, so long as the request is made five days in advance and a substitute is available. The bill also provides that at the time of retirement, a teacher may convert accumulated personal leave to sick leave for creditable service towards retirement. Lastly, the bill specifies that personal leave for teachers may not be used on days scheduled for State testing, unless approved by the principal.

Effective Date: 8/19/07

Statutes: G.S. 115C-302.1(d)

SB 924 – SCHOOL BUS SAFETY ACT CORRECTION (SL 2007-382)

This bill deletes the requirement that a “serious bodily injury” must occur for it to be a Class I felony to strike a person while passing a stopped school bus with a mechanical stop sign out or flashing red lights. The bill also deletes the requirement that the words “School Bus” be at least 8 inches high. Section 3 of the bill adds a new requirement that a school bus be painted primarily yellow below the roofline.

Effective Date: Section 3 is effective 8/1/07 and applies to buses acquired on or after that date. All other sections become effective 10/1/07 and apply to offenses committed on or after that date.

Statutes: G.S. 20‑217(g), G.S. 20‑4.01(27)d4

SB 1030 – ROPE SCHOLARS PILOT PROGRAM (SL 2007-277)

This bill requires the State Board of Education, the UNC Board of Governors and the State Board of Community Colleges to cooperatively develop a framework for a Reaching Ones Potential for Excellence (ROPE) Scholars Pilot Program. The intent of the program is to: (1) Reduce class size to 1:17; (2) Provide incentives of up to $5000 to teachers certified in any high need subject matter; (3) Provide a coordinator position at each participating school to assist in community and parental support; (4) Encourage participating students to have excellent attendance, maintain a B average, achieve an adequate score on the PSAT, SAT or ACT, meet UNC admission standards, engage in community service, and demonstrate good character; (5) Provide college scholarships to those who successfully participate in the program. Three LEAs would be selected for the 2009-2010 school year, at least one urban and one rural.

Effective Date: 7/27/07

SB 1086 – TOBACCO FREE SCHOOLS (SL 2007-236)

This bill requires local boards of education to adopt “tobacco free schools” policies. Previously the adoption of the policy in this statute was optional.

Effective Date: Policy must be in place by 8/1/08

Statute: G.S. 115C-407

SB 1115 – PILOT PROGRAM FOR LATERAL ENTRY TEACHERS (SL 2007-376)

This bill directs the State Board of Education to establish a pilot program for lateral entry teachers in up to eight local school administrative units, one of which will be Guilford County Schools. Under the pilot program, participating LEAs review the college transcripts of lateral entry teachers and determine a program of study that the teachers must complete. The pilot unit then arranges to provide course offerings that meet the unit's and the teacher's needs.

Effective Date: Policies and procedures must be adopted by 12/15/07.

Expiration Date: 6/30/2011

SB 1169 – CONFIRM STATE BOARD OF EDUCATION MEMBERS (Res. 2007-47)

This joint resolution provides for the confirmation of the appointments by the Governor of Kevin D. Howell and Eulada P. Watt to the State Board of Education for terms to expire March 31, 2015.

Effective Date: 6/20/07

SB 1218 – CANDIDATE FELONY DISCLOSURE (SL 2007-369)

This bill requires candidates at the time of filing for office to disclose on a form any felony for which he has been convicted. If convicted of a felony, the following information must be included: name of offense, date of conviction, date of restoration of citizenship rights, and county and state of conviction. Candidates for school board are included in those required to file. It is a Class I felony to knowingly file a false statement.

Effective Date: 1/1/08

Statutes: G.S. 163-106

SB 1240 – SALES TAX EXEMPTION FOR BAKED GOODS (SL 2007-368)

Section 2 of this bill authorizes a State sales tax exemption for all bread sold at a bakery thrift store.

Effective Date: 10/1/07 and applies to all sales made on or after that date.

Statute: G.S. 105-467(a)

SB 1245 – RETAINAGE PAYMENTS/CONSTRUCTION CONTRACTS (SL 2007-365)

This bill prohibits public owners from requiring retainage on public construction contracts of less than $100,000, limits the amount of retainage allowed to be held by the public owners to no more than 5%, provides for the release of retainage when 50% of the total cost has been reached and when the contractor has satisfactorily performed, and requires payment in full within 60 days following completion.

Effective Date: 1/1/08 and applies to contracts entered on or after that date

Statute: 143-134.1

SB 1292 – MODIFY REQUIREMENTS/TEACHER LICENSE RENEWAL (SL 2007-409)

This bill directs the State Board of Education to adopting a policy requiring teachers to take a specified number of renewal credits in their academic content areas as part of teaching license renewal. The policy may provide for exceptions for teachers seeking certification or re-certification by the National Board for Professional Teaching Standards (NBPTS). Teachers of grades kindergarten through twelve to take three renewal credits in their academic subject areas, including strategies to teach those subjects, during each five-year license renewal cycle.

Effective Date: 8/21/07

SB 1327 – BAIL BOND/EXCEPTION/RETURN OF BOND PREMIUM (SL 2007-399)

This bill adds two additional exceptions for when a surety would not be required to return the premium upon surrender of a defendant. If the defendant: (1) Fails to disclose information regarding any past or current criminal activity, charges, or convictions; (2) Provides the surety with incorrect personal identification.

Effective Date: 8/21/07

Statute: G.S. 58-71-20

SB 1452 DIESEL BUSES TO USE MINIMUM B-20 FUEL (SL 2007-423)

This bill requires any school bus purchased by a local board of education that is capable of operating on diesel fuel to be capable of operating on diesel fuel with a minimum biodiesel concentration of B-20(blend of 20% biodiesel fuel and 80% petroleum-based fuel). The bill also requires that of the total volume of the fuel purchased annually by local school districts statewide for use in school bus diesel engine motor vehicles, at least 2% of the total volume must 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.

Effective Date: 6/1/08, and applies to vehicles transferred or purchased on or after that date.

Statutes: G.S. 115C-238.29, 115C-240,115C-249,115C- 253

SB 1479 – HIGH NEEDS SCHOOLS/ADDITIONAL SUPPORT (SL 2007-445)

This bill requires the State Board of Education to designate schools as high need if they meet 2 out of 3 criteria: (1) More than 45% of students performing at Level 1 or 2 on end-of-grade or end-of-course tests; (2) Teacher Turnover Rates greater than 25%; (3) More than 80% of students qualifying for free or reduced lunch. In 2008-09, high needs schools would be permitted to allow: (1) Nationally Board Certified Teachers (NBCTs) serving as mentors, literacy coaches, or in other non-administrative instructional leaderships positions to retain their twelve percent (12%) salary increment; (2) NBCTs, teachers of the year, and other categories of accomplished teachers designated by the State Board to be given academic freedom to use research-based practices in the classroom beyond the standard course of study.

Effective Date: Goal that program would begin in the 2008-09 school year.

Statute: G.S. 115C-296.2

SB 1546 – CLARIFY PUBLIC ACCESS TO PERSONNEL RECORDS (SL 2007-508)

Section 1 of this bill clarifies that the terms of any contract of employment and all salary terms are public record and may be released from the personnel record of a State or local government employee. Salary includes pay, benefits, incentives, bonuses, and deferred and all other forms of compensation paid by the employing entity.

Effective Date: 8/30/07

Statutes: 115C‑320, 115D‑28, G.S. 122C‑158(b), 126‑23, 126‑22, G.S. 153A‑98(b), G.S. 160A‑168(b), G.S. 162A‑6.1(b)

SJR 1573 – ADJOURNMENT RESOLUTION (SL 2007-68)

This bill establishes that the Senate and House of Representatives stand adjourned to reconvene on Tuesday, May 13, 2008, at 12:00 noon.

Effective Date: 8/2/07

2007 Appropriations Act

	FY 07-08		FY 08-09	Recurring R Nonrecurring NR
Public Education

Adjusted Continuation Budget	$7,466,321,736		$7,579,725,190
A. Reductions to Continuation Budget
1. Partnership for Excellence	($37,500)	R	($37,500)	R
2. Replacement School Buses	($4,500,000)	NR
3. High Priority Elementary Schools	($520,067)	R	($520,067)	R
4. Teachers Assistants	($5,459,534)	R	($5,459,534)	R
B. Expansion – Technical Assistance
5. Teaching Fellows	$650,000	R	$1,300,000	R
6. Principals for STEM Schools	$812,500	R	$812,500	R
7. Restructured High Schools	$1,367,254	R	$1,367,254	R
8. Education Value Added Assessment System (EVAAS)	$345,000	R	$345,000	R
C. Expansion – State Public School Fund
9. ABC Bonuses	$70,000,000	NR
10. Class Size Reduction	$37,500,000	NR
11. Disadvantaged Student Supplemental Funding (DSSF)	$17,563,000	R	$17,563,000	R
12. Learn & Earn	$2,445,011 $700,000	R NR	$3,260,015 $30,000	R NR
13. Learn & Earn Online	$6,500,000 $5,000,000	R NR	$10,100,000	R
14. School Connectivity	$12,000,000	R	$12,000,000	R
15. Instructional Supplies/Materials	$2,833,994	R	$2,833,994	R
16. Academically & Intellectually Gifted	$1,750,000	R	$1,750,000	R
17. Children with Disabilities	$5,000,000	R	$5,000,000	R
18. Small County Supplemental Funding	$2,100,000	R	$2,100,000	R
19. Literacy Coaches	$5,704,400	R	$5,704,400	R
20. Regional Military Family Counselors	$240,000	R	$240,000	R
21. Critical Foreign Language Pilots	$500,000	R	$500,000	R
22. Dropout Prevention Grants	$7,000,000	NR
23. Focused Education Reform Pilot Program	$4,423,094	R	$7,176,433	R
24. School Technology Pilot	$3,000,000	NR
25. Low Wealth Counties Supplemental Funding	$5,445,081	NR
26. More at Four	$56,000,000	R	$56,000,000	R
27. DPI Consolidated Assistance Program	$150,000	R	$150,000	R
28. DPI Legacy Computer System Upgrades	$2,000,000	NR	$2,000,000	NR
29. DPI Testing Position	$234,600 3.00	R	$234,600 3.00	R
30. DPI Positive Behavior Support Coordinator	$90,000 1.00	R	$90,000 1.00	R
31. Financial Literacy Curriculum	$500,000	R	$500,000	R
32. Centralization of Professional Development	$550,000 4.00	R	$550,000 4.00	R
33. State Board of Education Operating Support	$100,000	NR
34. Education Value Added Assessment System (EVAAS)/Teacher Evaluation Module	$1,105,000	NR
35. Receipt Supported Positions
E. Expansion – Pass- Throughs
36. Communities in Schools	$500,000 $550,000	R NR	$500,000	R
37. Teacher Academy	$2,000,000	R	$2,000,000	R
38. Teach for America	$200,000	NR
39. Science Competitions	$200,000	R	$200,000	R
40. Kids Voting	$250,000	NR
41. Ag in the Classroom	$50,000	NR
42. Schools Attuned	$300,000	R	$300,000	R
43. Teacher Cadet Program	$278,500	NR
44. Project Enlightenment	$200,000	NR
45. NC Humanities Council Teacher Institute Program	$100,000	NR
46. PTA Parental Involvement Initiative	$262,500	NR
47. ExplorNet	$125,000	NR

Total Legislative Changes	$118,741,752	R	$126,560,095	R
	$129,366,081	NR	$2,030,000	NR
Total Position Changes	8.00		8.00

Revised Budget	$7,714,429,569		$7,708,315,285

UNC System
48 Principals’ Executive Program Budget Change	($1,266,170) $1,266,170	R NR	($1,266,170) $1,266,170	R NR
61 Future Scholarship Loan	$325,000	R	$325,000	R
88 UNC System Lateral Entry Program	$750,000	NR
103 Teacher Education Recruitment and Retention Efforts	$1,500,000	R	$1,500,000	R
104 Principals’ Executive Program Leadership Program for Middle & High Schools	$607,000	NR
115 Teacher Education Pilot Program	$750,000	R	$750,000	R
Health and Human Services
59 School Nurse Funding	$2,700,000	R	$3,300,000	R
91 County Medicaid Share	$86,200,000	R	$271,200,000	R
Environment & Natural Resources
18 School Bus Diesel Emissions Reduction Account	$500,000	NR
Justice
42 School Training Safety Coordinator Position	$67,503 $20,606 1.00	R NR	$67,503 1.00	R
47 Eliminate Funding for CIS	($181,588)	R	($181,588)	R
Cultural Resources
15 Enhanced History Education	$100,000	R	$100,000	R
22 Artwheels Funding	$1,000,000	NR
Governor
33 Eliminate Communities in Schools Pass-Through	($200,000)	R	($200,000)	R
45 Driver Education Program – Correction to Continuation Budget	$0	R	$77,913	R
Statewide Reserves
2 Public School Salary Increases
7 Additional Salary Increase for Teacher Assistants	$1,150,240	R	$1,150,240	R
8 Add Additional Step to the Public School Teacher Salary Schedule	$9,862,065	R	$9,862,065	R
Capital
34 UNC Greensboro Education Building	$2,500,000	NR
41 Appalachian State University – Education

SUMMARY OF BUDGET BILL – HB 1473 (SL 2007-323)

PART V. OTHER AVAILABILITY AND APPROPRIATIONS

Section 5.2 Education Lottery

This section allocates the funds from the lottery to class size reduction, Pre-K programs, public school building capital fund and scholarships for needy students. Changes were made to the provision allocating revenues by making it less restrictive and more suggestive.

PART VII. PUBLIC SCHOOLS

Section 7.1 Teacher Salary Schedules

This designates the salary increases for “A” teachers and National Board Certified teachers. Teachers are to receive an average increase of 5 percent (a step increase of 1.83 percent plus a $1,240 flat increase). This moves the starting salary for beginning teachers to $2,975 per month. Teachers paid on Step 0 of the salary schedule for the 2007-2008 school year shall receive a one-time bonus of $250.00, payable at the end of the school year. For the second year in a row, an additional step was added to the salary schedule.

Section 7.2 School-Based Administrator Salary Schedule

This section designates the salary range for assistant principals and principals. Assistant principals and principals would receive an average 4.4 percent (a step increase of 1.67 percent plus a $1,240 flat increase). Participants in an approved Master’s in School Administration Program shall receive up to a 10 month stipend at the beginning salary of an assistant principal. For 2006-2007 fiscal year and subsequent fiscal years, the stipend shall not exceed the difference between the beginning salary of an assistant principal plus the cost of tuition, fees, books and any fellowship funds received by the intern.

Section 7.3 Central Office Salaries

This provision designates the salary schedule for assistant superintendents, associate superintendents, directors/coordinators, supervisors and finance officers. The annual salary increase for permanent, full-time personnel paid from the Central Office Allotment will be 4 percent commencing July 1, 2007. Additional compensation is provided for administrators with 6 year degrees and doctoral degrees.

Section 7.4 Noncertified Personnel Salaries

This standard designates the salary schedule for all non-certified personnel whose salaries are supported from the State’s General Fund. The annual salary increase is 4 percent for the 2007-2008 fiscal year. Section (b) of the provision addresses part-time employees, stating that their pay increase shall be pro rata based on the number of hours worked.

Section 7.5 Bonus for Certified Personnel at the Top of Their Salary Schedules

Effective July 1, 2007, any permanent personnel employed on July 1, 2007, and paid at the top of the principal and assistant principal salary schedule shall receive a one-time bonus equivalent to 2%.

Section 7.6 Use of Supplemental Funding in Low-Wealth Counties

This standard provision details the distribution and expenditure of low-wealth funds. (Same as 2005)

Section 7.7 Small School System Supplemental Funding

The funding base is increased to $788, 789 for 2007-2008 and for 2008-2009. Of the expansion funds appropriated, $784,703 shall be distributed to county school administrative units that have less than 1,300 students and have experienced a decline in average daily membership since the 2001-2002 school year. The funds shall be used to reduce the ratio of students to teachers in grades K-5 by one, grades 6-8 by two, and grades 9-12 by three.

Section 7.8 Disadvantaged Student Supplemental Funding

This provision provides the allocation formula for the DSSF Fund. $17,563,000 additional DSSF funding was provided for both fiscal years 2007-2008 and 2008-2009. The provision changes the formula for funds appropriated to the LEAs. The funds shall be allotted based on the LEAs eligible DSSF population and the difference between the teacher-to-student ratio of 1:21 and the following teacher-student ratios: (1) 1:20.0 for counties with wealth greater than 90% of the statewide average; (2) 1:19.5 for counties with wealth not less than 80% but not greater than 90% of the statewide average; (3) 1:19.3 for counties with wealth less than 80% of the statewide average; (4) 1:16 for LEAs receiving DSSF funds in 2005-2006. These LEAs shall receive no less than the DSSF amount allotted in 2006-07.

Section 7.9 Students with Limited English Proficiency

This standard provision involves guidelines for identifying and providing services to students with limited proficiency in the English language. (Same as 2005)

Section 7.10 Children with Disabilities

Provides increased funding of $3,199.57 per child for a maximum of 171,617 children for the 2007-2008 school year. This is an increase of $227.05 per pupil from 2006-07 funding. The 12.5% funding cap of the LEA’s ADM remains in place.

Section 7.11 Funds for Academically Gifted Children

This provision designates $1,042.53 per each academically or intellectually gifted child, not to exceed 58,470 children for the 2007-2008 school year. This is an increase of $80.93 per child. The 4% funding cap remains in place.

Section 7.12 Expenditure of Funds to Improve Student Accountability

Funds appropriated for 2006-2007 and 2007-2008 shall be used to assist students to perform at or above grade level in reading and math in grades 3-8. The funds shall be allocated based on the number of students who score at Level I and Level II. These funds shall not be transferred and will be allocated within 30 days of the budget becoming law.

Section 7.13 Litigation Reserve Funds

The State Board of Education may expend up to $200,000 each year for the 2007-2008 and 2008-2009 fiscal year from unexpended funds for certified employees’ salaries to pay expenses related to pending litigation. This is a reduction from the $500,000 allocated for this purpose in previous budget.

Section 7.14 Replacement School Buses Funds

This standard provision provides guidance to the State Board of Education on allocating the funds for replacement school buses. (Same as 2005)

Section 7.15 Discrepancies Between Anticipated and Actual ADM

This standard provision permits the SBE to use funds appropriated to State Aid for Public Schools to make allotment adjustments in accordance with the Allotment Adjustments for ADM Growth provisions of the NC Public Schools Allotment Policy Manual. The provision also requires that if the higher of the first or second month average daily membership in an LEA is at least 2 percent or 100 students lower than anticipated, the SBE shall reduce allotments for the unit. (Same as 2005)

Section 7.16 Charter School Evaluation

The State Board of Education may spend up to $50,000 a year from State Aid to Local School Administrative Units for the 2007-2008 and 2008-2009 fiscal years to evaluate charter schools. In particular, the State Board of Education shall consider the extent to which charter schools have accomplished the following six objectives: (1) Improve student learning; (2) Increase learning opportunities for all students, with special emphasis on learning experiences for students who are identified as at risk of academic failure or academically gifted; (3) Encourage the use of different and innovative teaching methods; (4) Create new professional opportunities for teachers, including the opportunities to be responsible for the learning program at the school site; (5) Provide parents and students with expanded choices in the types of educational opportunities that are available within the public school system; (6) Hold the schools accountable for meeting measurable student achievement results and provide the schools with a method to change from rule-based to performance based accountability systems.

Section 7.17 Mentor Teach Funds May be Used for Full-Time Mentors

This standard provision provides flexibility for mentor funds to be used for full-time mentors. (Same as 2005)

Section 7.18 Funds to Implement the ABCs of Public Education

The ABC bonuses remain the same and apply to higher than expected improvements: $1,500 for teachers and $500 for teacher assistants. Expected improvements continue to be up to $750 for teachers and $375 for teacher assistants. The State Board of Education may also use funds appropriated to the State Public School Fund to implement the consolidated assistance program, as directed in the 2006 budget.

Section 7.19 Learn and Earn High Schools

Funds are appropriated to establish new high schools in LEAs to work with two and four year colleges, universities, and local employers to assist students in having the skills necessary to meet the needs of the employers in the community. Of the funds appropriated to the State Public School Fund for the 2007-08 fiscal year, the State Board of Education may use up to $850,000 to establish Learn and Earn high schools that become certified as operational.

Section 7.20 North Carolina Virtual Public School

This provision allows the State Board of Education to implement their allotment formula for funding e-learning, effective in the 2008-09 fiscal year. NCVPS shall be available at no cost to all students in North Carolina who are enrolled in North Carolina’s public schools, Department of Defense schools, and schools operated by the Bureau of Indian Affairs. The State Board of Education may convert 22 three month positions that were authorized in 2006 budget to 5 full-time positions if the Board determines it is appropriate to do so.

Section 7.21 Small Restructured High Schools

The State Board of Education shall report to the Office and State Budget and Management, the Fiscal Research Division, and Joint Legislative Education Oversight Committee no later than January 15 of each year on the results of its evaluation of the small, restructured high school program. The evaluation shall include, among measures identified in statute: (1) accounting of how funds and personal resources were utilized and their impact on student achievement, retention, and employability; and (2) recommendations for improvement of the program.

Section 7.22 NC Wise Positions

The State Board of Education, subject to the approval of the Office of State Budget and Management in Consultation with the Office of State Budget and Management in Consultation with the Joint Legislative Commission on Governmental Operations, may use funds appropriated for NC WISE to create a maximum of 10 positions and incur expenses necessary to maintain and administer the NC Wise system with the Department of Public Instruction.

Section 7.23 21st Century Literacy Coaches

This provision provides details on the selection of the 100 new literacy coaches for middle schools. No more than one literacy coach shall be placed in each school. The State Board of Education, in consultation with the North Carolina Teacher Academy, shall develop a site selection process including formal criteria. The site must receive formal approval by the State Board of Education to receive funds for this purpose. To be selected, schools must: (1) Contain an 8th grade class; (2) Ensure literacy coaches will have no administrative responsibilities in the schools in which they are placed. Section (b) explains that National Board Certified Teachers serving in this position shall remain on the NBPTS teacher salary schedule.

Section 7.24 More at Four Program and Office of School Readiness

This section provides guidance to the Department of Public Instruction as they continue implementation of the “More at Four” program. Section (d) adds that any age-eligible child of (i) an active duty member of the armed forces of the United States ordered to active duty within the last 18 months or expected to be ordered within the next 18 months, or (ii) a member of the armed forces killed or injured while serving on active duty, shall be eligible for this program.

Section 7.25 Administrative Funding for Teaching Fellows Program

This provision provides that the Public School Forum is now able to use $810,000 annually from the fund balance for the cost associated with the administration of the Teaching Fellows Program. Section (d) provides that the General Assembly urges the North Carolina Teaching Fellows Commission to use funds available in the revolving fund to establish additional teaching fellows scholarships.

Section 7.24 No Cost Summer School or Other Remediation Activities

Effective July 1, 2007, LEAs must formally communicate to at-risk students and their parents or guardians that there will be no charge for participation in intervention activities/practices or transportation necessary for participation in the intervention activities. In addition, LEAs must also communicate to students and parents that tuition and fees will not be charged for summer school courses that are required for remediation or necessary for graduation.

Section 7.27 Learn and Earn Online

This section establishes the Learn and Earn Online Program, which allows high school students to enroll in college courses online to qualify for college credit. Online courses will be made available to students through the University of North Carolina and the North Carolina Community College System. The State Board of Education determines the allocation of funds across the State. Section (g) establishes that course quality and rigor standards are to be established and each program shall conduct course evaluations to ensure online courses made available to students meet the established standards. Section (h) directs that the State Board report to the Joint Legislative Oversight Committee prior to April 15, 2008, on the implementation of the program for the 2007-08 school year and proposed operating plan for the 2008-09 school year. Section (i) states that LEAs may purchase textbooks for Learn and Earn Online courses through the Department of Public Instruction’s textbook warehouse. Lastly, Section (j) adds 115D-1.2 by allowing public school students 9-12 participating in Learn and Earn to enroll in a community college course for college credit, regardless of the college services in the area they reside.

Section 7.28 School Connectivity Initiative

Subsection (a) provides that funds appropriated to support technology infrastructure for public schools shall be used for broadband access, equipment, and support services that create, improve, or sustain equity of access.

Subsection (b) directs the State Board of Education to contract with an entity that has the capacity of serving as the administrator of the School Connectivity Initiative and demonstrated success in providing network services to education institutions within the State. The funds are also used to implement a plan which includes 8 components: (1) A business plan with time lines, clearly defined outcomes, and an operational model including a governance structure, personnel, e-rate reimbursement, support services to local school administrative units and a budget; (2) Assurances for a fair and open bidding and contracting process; (3) Technology assessment site survey template; (4) Documentation of technology assessments; (5) Documentation of how the technology will be used to enhance teaching and learning; (6) Documentation of how existing state funds for technology are maximized to implement the School Connectivity Initiative; (7) The number, location, and schedule of sites to be served in 2007-08 and in 2008-09; (8) Assurances that local LEAs will upgrade internal networks in schools, provide technology tools, and support for teachers and students to use technology to improve teaching and learning.

Subsection (c) directs that funds currently used for services covered by these new funds shall not be supplanted and any refunds received for services paid with the technology funds shall return to the originating technology fund.

Subsection (d) directs the State Board of Education to report January 15, 2008, and annually thereafter on its progress towards achieving the connectivity initiative.

Subsection (e) directs the Education Cabinet to develop a plan to: (1) Coordinate E-learning activities across the public and private universities and colleges, the community colleges, and the public schools; (2) Establish a clear purpose and goals for the NC Virtual based on a stakeholder needs and requirements; (3) Develop a strategic plan with measurable goals with reports provided to the Education Cabinet; (4) Develop, track, and report regularly to the Education Cabinet on appropriate accountability measures for those goals; (5) Develop and manage an E-learning portal for NCVirtual; and (6) Use State-invested funds for E-learning to eliminate duplication of service.

Subsection (f) allocates up to $300,000 to be transferred to the Office of the Governor to establish NCVirtual within the Education Cabinet. The Education Cabinet is directed to report on January 1, 2008, and annually thereafter on the development of the plan.

The State Board may use up to $1,000,000 to establish up to eight regional positions or contract for services regionally to assist LEAs in implementing the initiative. Specifically, these positions will assist with the assessment of needs, upgrading, and planning for management of resources and ongoing maintenance.

Section 7.29 Reorganization of the Department of Public Instruction

The Department of Public Instruction is authorized to reorganize in accordance with the plan adopted by the State Board of Education. The Department is directed to report to the Joint Legislative Commission on Governmental Relations on the reorganization.

Section 7.31 Study of Public School Funding Formulas

The Joint Legislative Study Commission on Public School Funding Formulas is directed to study the following public school funding formulas: (1) Children with Disabilities; (2) Limited English Proficiency; (3) At-Risk Student Services/Alternative Schools; (4) Improving Student Accountability; (5) Disadvantaged Students Supplemental; (6) Low Wealth Counties Supplemental Funding; (7) Small County Supplemental Funding; (8)

Transportation of Pupils; and (9) Academically or Intellectually Gifted. The Committee is also directed to study the State Board’s model for projecting average daily membership. The Committee shall submit a report of its findings and recommendation to the 2008 Regular Session of the 2007 General Assembly.

HB 714: 2007 Budget Technical Corrections adds the following new studies to the Commission Study: (1) Capital School Fund; (2) Lottery School Construction Formula; and (3) Number of school systems funded per county.

Section 7.32 Dropout Prevention Grants

This section creates the Committee on Dropout Prevention which is appointed by the Governor, President Pro Tempore, and Speaker of the House. The Committee will determine which LEAs receive dropout prevention grants meeting the following criteria: (i) grants are to be in varying amounts up to a maximum of $150,000: (ii) innovative programs and initiatives that target students at risk of dropping out and demonstrate the ability to be sustained and used as a model for others; (iii) priority is given to those programs started within the last 5 years; (iv) grants will be distributed geographically to LEAs, schools, local agencies, and nonprofit organizations that hold all students to high academic and personal standards; (v) grant applications must state how the funds will be used, how the program will be coordinated, and the process for evaluating the success of the initiative; (vi) priority will be given to proposals that demonstrate input from the local community and coordination with other available programs or resources. Grants shall be made no later than November 1, 2007. The Committee is directed to report to the Joint Legislative Commission on Dropout Prevention and High School Graduation by December 1, 2007.

The provision also creates the Joint Legislative Commission on Dropout Prevention appointed by the President Pro Tempore and Speaker of the House of Representatives. The Commission is directed to: (i) Evaluate initiatives and programs designed to reduce the dropout rate; (ii) Review research on factors related to student success in school; (iii) Evaluate the possible expansion of programs that received grants; (iv) Study middle school and high school reform efforts; (v) Examine strategies, programs, and support services that should be provided if the compulsory school attendance age is raised; (vi) Review the current system of rewarding course credit; (vii) Determine which intervention and other strategies work best to keep students in school. The Commission may submit an interim report to the Joint Legislative Education Oversight Committee by May 1, 2008, and shall submit a final report on or before the convening of the 2009 Session of the General Assembly.

Section 7.34 High Priority Schools

The State Board of Education may develop a policy for a two–year phase out of the special supplementary funding currently provided to the two remaining high priority elementary schools and may use funds in the ADM Contingency Reserve to support any additional cost of the two-year phase-out. The State Board may not use funds appropriated as State Aid to LEAs to contract with an outside organization to evaluate the high priorities schools initiative begun in the 2001-2002 fiscal year. The Board, may, however, use up to $500,000 previously identified for this purpose to support the ongoing evaluation of the Disadvantaged Student Supplemental Funding Initiative.

Section 7.35 Distance Education

Unless otherwise prohibited by statute, the State Board of Education may use money from the State Public School Fund in the 2007-08 fiscal year to pay for additional costs associated with an increased number of registration fees for students enrolling in Distance Education courses.

Section 7.36A Child Nutrition

This section amends 115C-264.3 by changing the required implementation date for all elementary schools to meet the statewide nutritional standards from 2007-2008 to 2008-2009.

Section 7.39 Funds for School Technology Pilot

Funds are appropriated to the State Board of Education to be used with a grant of $3,000,000 from the Gold LEAF Foundation and other private sector funds to establish a school technology program. Eight pilot schools selected by the Golden LEAF Foundation and DPI shall receive funds to incorporate technology in the classroom. Non-state money would fund student and teacher portable computers. Up to $100,000 may be used to contract with an independent research organization to study the effectiveness of the pilot. Remaining State funds are to be used to access network capabilities, purchase additional software, establish technical support, and provide professional development. Unused funds at the end of the 2007-08 fiscal year shall not revert.

Section 7.40. ADM Conformity

This section repeals section 8 in the continuing resolution (SL 2007-145).

Part IX. Universities

Section 9.9 Future Teachers of NC Scholarship Loan Program

This provision changes the number of scholarships awarded through the Future Teachers of North Carolina Scholarship Fund from 100 to 150.

Section 9.10 Principals Executive Program

This provision stipulates that the Principals Executive Program will receive funding on a non-recurring basis until it has proven it has a positive measurable impact. It also directs the Program to develop a formal admissions policy.

Part X. Department of Health and Human Services

Section 10.9 Collaboration Among Departments of Administration, Health and Human Services, Juvenile Justice and School-Based Child and Family Team Initiative

This provision continues the School-Based Child and Family Team Initiative, which identifies and coordinates appropriate community services and support for children at-risk of school failure or out-of-home placement in order to address the physical, social, legal, emotional, and developmental factors that affect academic performance. The Department of Health and Human Services implements the program in conjunction with the Department of Public Instruction and Department of Juvenile Justice. The provision has moved from the Public Schools section into the Department of Health and Human Services section. (Same as 2005)

Section 10.10 Comprehensive Treatment Services Program/Establishment of Task Force on the Coordination of Children’s Services

This section continues the Comprehensive Treatment Services Program for children at risk for institutionalization or other out-of home placement. Section (a) adds two new components to the program requirements including the development of a strong infrastructure of interagency collaboration and individual strengths-based care. Section (b) adds the requirement services shall be specified, delivered, and monitored through a unified Child and Family Plan and that out-of home placements are to be the last resort.

Section (i) adds to the charge of the Legislative Study Commission on Children and Youth. (the study of children and youth should also include those served by the Mental Health, Developmental Disabilities, and Substance Abuse Service System).

Section 10.20 Evaluation of Educational Services to Students with Hearing and Visual Impairments

This section directs the Department of Health and Human Services and Department of Public Instruction to collaborate in evaluation of the State’s entire service delivery model for deaf and blind students, including special needs of the students resulting from additional disabilities other than hearing or visual impairments. In addition, the departments are to determine if the State’s schools for the deaf and blind should remain under the purview of the DHHS or should be transferred to DPI. Lastly, this section directs both departments to develop a plan to reduce institutional capacity to an appropriate level. Their findings shall be reported by April 1, 2008.

Section 10.23 Funds for School Nurses

This section provides the funding for the school nurse funding initiative in the amount of $2,700,000 (54 nurses) for the 2007-08 fiscal year and $3,300,000 (66 nurses) 2008-09 fiscal year. This is an increase from the $2,500,000 allocated in 2005-2006 and 2006-2007 fiscal years. All language from the 2005 budget, including non-supplant, remains.

Part XVI. Department of Crime Control and Public Safety

Section 16.8 Study Gang Activity

The Governors Crime Commission is directed to study gang activity in North Carolina. The Commission is to look at the following: (1) Assess gang activities in communities and State prisons; (2) Consult with departments, including the Department of Public Instruction about any gang initiatives they have in place or administered in the past; (3) Summarize significant gang prevention, intervention, and suppression administered by local law enforcement; (4) Review best practices in gang prevention; (5) Project gang activity growth and locations; (6) Provide recommendations on ways of using State and local resources to improve gang activity prevention; (7) Provide a report of recommendations by March 15, 2008.

Part XXVIII. Salaries and Benefits

Section 28.15 All State-Supported Personnel/Salary Increases

Subsection (f) provides permanent full-time employees who work nine, ten, or eleven month work years shall receive a 4% annual increase. The other provisions in this section remain the same.

Section 28.22 State Health Plan Changes Effective for Fiscal Year 2007-2008

This Section outlines changes to the Teachers’ and State Employees’ Comprehensive Major Medical Plan to provide for an annual enrollment period in the Indemnity Plan and optional PPO program during an enrollment period for July 1, 2007 to June 30, 2008 Plan year. Plan member changes to coverage type or selection of benefit coverage under the Indemnity Plan optional PPO program during an enrollment period shall be effective

October 1, 2007. At least 45 days prior to October 1, 2007, the Plan shall provide to all Plan members sufficient information on cost-sharing, and benefits to enable the Plan member or other eligible participant to make an enrollment election effective October 1, 2007.

Subsections (b) and (c) increase the deductible after which benefits may be payable from $350.00 to $450.00. The provision also changes the aggregate maximum per employee and child(ren) from $1,050 to $1,350. Subsection (d) makes changes to the prescription drug payments by charging up to $40.00 less co-payments (increased from $30.00) for each outpatient preferred branded prescription drug. The co-payments apply to the optional programs also.

Subsection (f) amends the statute providing benefits for the treatment of mental illness and chemical dependency by adding all optional programs or plans in effect under Teachers’ and State Employees’ Comprehensive Major Medical Plan and its successor plans. Subsection (g) changes the Plan’s payment of charges for home, office, or nursing visit by making the covered person pay the first $25.00 previously $15.00. Subsection (h) requires that optional programs shall not limit the number of visits for covered services for physical therapy, occupational therapy, and speech therapy.

Subsection (i) explains it is the intent of the General Assembly that active and retired employees covered under the Plan and its successor plan shall have several opportunities in each fiscal year to attend presentations conducted by Plan management staff providing detailed information about benefits, limitations, premiums, and co-payments. Such presentations will be spread across the state and will also provide an opportunity for Plan members to ask specific questions about the plan.

Section 28.22A State Health Plan Changes Effective for Fiscal Year 2008-2009 Fiscal Year

The first change for Fiscal Year 2008-09 will be changing the name of the Teachers’ and State Employees’ Comprehensive Major Medical Plan to the State Health Plan for Teachers and State Employees. Section (c) adds that the Executive Administrator and Board of Trustees of the State Health Plan for Teachers and State Employees may contract with providers of institutional and professional medical care and services to establish preferred provider networks. The section also states that the terms pertaining to reimbursement rates or other terms of consideration of any contract shall not be public record for a period of 30 months after the date of expiration of the contract, except for the release of information used in the furtherance of the duties of the State Auditor, Attorney General, Director of the State Budget, Plan’s Executive Administrator, and the Committee on Employee Hospital and Medical Benefits.

Effective July 1, 2008, the State Health Plan will constitute a comprehensive benefit plan that includes noncontributory coverage and may be an optional PPO or other type optional benefit plan. Chemical dependency and mental health benefits apply to the Plan and all optional benefit plans offered under an optional PPO or other type of optional benefit plan.

Effective July 1, 2008, the Executive Administrator and Board of Trustees may, in addition to the noncontributory coverage, offer optional coverage on a partially contributory basis. The amount of State funds contributed for the optional coverage on a partially contributory basis must not be more than the Plan’s total noncontributory premium for Employee Only Coverage. In addition, the Administrator and Trustees may not impose a partially contributory premium until after it has consulted with on the premium and optional coverage design with the Committee on Employee Hospital and Medical Benefits. Section (h) adds another option for types of coverage to include employee and spouse.

The following website: http://www.shpnc.org/RateBenChange_2007.html has more information on the State Health Plan changes.

Part XXX. Fees

Section 30.9 Collection of Outstanding Fines and Fees by the Courts

This provision adds that in attempting to collect fines, fees, and costs owed by offenders not sentenced to supervised probation, the Judicial Department may: (1) Assess a collection assistance fee if an amount due remains unpaid for 30 days after the time period allotted by the court. The amount of the collection fee must not exceed the average cost of collecting the debt or 20% of the amount past due, whichever is less; (2) Enter into contracts with an agency to collect unpaid fines, fees, and costs owed by offenders not sentenced to supervised probation.; (3) Intercept tax refund checks. If the Judicial Department uses any method listed in (1) and (2), they may not charge an additional cost of collection.

Part XXXI. Tax Law Changes

Section 31.10 Expand Sales and Use Tax Refund for Certain Aircraft Manufacturers

The sales tax refund for complete aircraft is expanded to include many of the parts.

Section 31.16 State Assume Medicaid Responsibilities

The state would assume the counties’ share of Medicaid costs on a 3 year phased-in basis, ultimately assuming 100 percent of costs effective October 1, 2009. The state would take over the third one-half cent local option sales tax (Article 44) on a phased-in basis. The one-quarter cent of that tax that is distributed on a per capita basis would, in effect, become a state sales tax on October 1, 2008. The remaining one-quarter cent that is distributed on point of delivery would become a state tax effective October 1, 2009.

To help offset some of these new state costs in the first year, the General Assembly is withholding approximately 50 percent of the Public School Building Capital Fund for 2007-08 only. Counties will make up the difference through their Medicaid savings and hold harmless payments. If the county's Medicaid reimbursements do not equal or exceed $500,000, the State will reimburse counties the difference (up to $500K) starting with Fiscal Year 2007-08 and every year thereafter.

The legislation requires that counties must hold the municipalities in the counties harmless. The N.C. Secretary of Revenue would reduce each county’s sales tax revenues by the hold harmless amount for each municipality of that county. The hold harmless for the first one-quarter cent tax repealed would be equal to 50 percent of the revenues from Article 40 sales tax revenues minus the tax on food. When the second one-quarter cent is repealed, the hold harmless will be equal to 25 percent of Article 39 sales tax revenues minus the tax on food.

Section 31.17 Local Option County Taxes

This section authorizes county boards of commissioners to levy either an additional one-quarter sales tax or a .4 percent local land transfer tax, both subject to a referendum. Though not a requirement, it was the intent of the General Assembly that such relief would be used for school construction. The use of the proceeds can be used for any lawful purpose.

Section 31.20 Sales Tax Refund Research Supplies

This provision grants a sales tax refund for taxpayers engaged in analytical services in the State. Those engaged in analytical services are allowed a refund of 50% of the eligible amount of sales and use tax paid in this State on tangible property that is consumed or transformed in analytical service activities.

Section 31.22 Data Center Sales Tax Exemption

This section authorizes a sales tax exemption for a data centers.

2007 Summary of Local Bills

HOUSE

HB 410 – CLEVELAND SCHOOL BOARD TERMS (SL 2007-49)

This bill changes the number of school board members elected at a particular time from 6 in one year and 3 in the other to 5 and 4.

Effective Date: 5/17/07

HB 484– MERGER OF TWO CHARTER SCHOOLS (SL 2007-21)

This bill authorizes the boards of directors of the American Renaissance Middle School and the American Renaissance Charter School to consolidate the schools into a single charter school under a joint board of directors with a grade configuration of kindergarten through eighth grade. All students enrolled in either school prior to the merger may remain in the newly consolidated school. The consolidation of the two schools under a single charter must be completed by July 1, 2007.

Effective Date: 4/23/07

HB 922 – BERTIE AND HYDE SCHOOL BOARD ELECTIONS (SL 2007-272)

This bill allows the Bertie School Board Elections to be on a nonpartisan basis at the time of the General Election and changes the time when the Hyde County School Board members take office.

Statute: 115C-37(d)

Effective Date: 7/27/07

HB 1138 – EXPEDITED DESIGN/BUILD SCHOOLS – UNION COUNTY (SL 2007-90)

The bill provides flexibility in school construction and repair contracts for Union County Public Schools by allowing prequalification of bidders, construction management, design-build, and project bundling.

Effective Date: 6/19/07

Expiration Date: 7/1/11

HB 1228 – STOP LIGHT CAMERAS IN CERTAIN MUNICIPALITIES (SL 2007-341)

This bill is a local act applicable to the Cities of Albemarle, Charlotte, Durham, Fayetteville, Locust, Monroe, and Rocky Mount and the municipalities in Union County. The bill amends the legislation authorizing the use of cameras to identify and penalize persons who violate the red light statute. The bill does the following: (1) Raises the civil penalty from $50.00 to $75.00; (2) Requires the citation to state when the penalty is due; (3) Specifies that the increase in the civil penalty and the loss of appeal rights occurs if payment is not made within 30 days after the citation is served or mailed; (4) Specifies that the clear proceeds must be paid to the local school board, subject only to deductions for costs of materials, postage, and computer services directly related to the printing and mailing of required notices. The deductions may not exceed 10% of the $75.00 penalty; (5) Authorizes the assessment of a “collection assistance fee,” not to exceed 20% of the $75.00 civil penalty, if the civil penalty has not been paid 30 days after the second notice; (6) Requires the proceeds from the collection assistance fee to be placed in a separate fund to be used only for collection purposes related to civil penalties that remain unpaid after the second notice.

Effective Date: 9/1/07

Statute: 160A-300.1(c)

SENATE

SB 386 – WARREN SCHOOL BOARD ELECTION (SL 2007-50)

This bill confirms that Warren County Board of Education Members are to be elected from Townships. To be eligible to serve as a member of the board representing a district, a person must reside in the district but is elected county-wide. In addition, effective with those members elected in 2012, the terms of newly elected members of the board of education begin 30 days after the certification of the results of the election. The term of office of members elected in 2008 expires at that time.

Effective Date: 5/17/07

Current Information

Legislative Summary

Table of Contents

2007 Summary of Statewide Public Bills

2007 Appropriations Act

2007 Summary of Statewide Bills

HB 1473 – 2007 APPROPRIATIONS ACT (see above)

PART V. OTHER AVAILABILITY AND APPROPRIATIONS

Section 5.2 Education Lottery

PART VII. PUBLIC SCHOOLS

Section 7.1 Teacher Salary Schedules

Section 7.2 School-Based Administrator Salary Schedule

Section 7.3 Central Office Salaries

Section 7.4 Noncertified Personnel Salaries

Section 7.5 Bonus for Certified Personnel at the Top of Their Salary Schedules

Section 7.6 Use of Supplemental Funding in Low-Wealth Counties

Section 7.7 Small School System Supplemental Funding

Section 7.8 Disadvantaged Student Supplemental Funding

Section 7.9 Students with Limited English Proficiency

Section 7.10 Children with Disabilities

Section 7.11 Funds for Academically Gifted Children

Section 7.12 Expenditure of Funds to Improve Student Accountability

Section 7.13 Litigation Reserve Funds

Section 7.14 Replacement School Buses Funds

Section 7.15 Discrepancies Between Anticipated and Actual ADM

Section 7.16 Charter School Evaluation

Section 7.17 Mentor Teach Funds May be Used for Full-Time Mentors

Section 7.18 Funds to Implement the ABCs of Public Education

Section 7.19 Learn and Earn High Schools

Section 7.20 North Carolina Virtual Public School

Section 7.21 Small Restructured High Schools

Section 7.22 NC Wise Positions

Section 7.23 21st Century Literacy Coaches

Section 7.24 More at Four Program and Office of School Readiness

Section 7.25 Administrative Funding for Teaching Fellows Program

Section 7.24 No Cost Summer School or Other Remediation Activities

Section 7.27 Learn and Earn Online

Section 7.28 School Connectivity Initiative

Section 7.29 Reorganization of the Department of Public Instruction

Section 7.31 Study of Public School Funding Formulas

Section 7.32 Dropout Prevention Grants

Section 7.34 High Priority Schools

Section 7.35 Distance Education

Section 7.36A Child Nutrition

Section 7.39 Funds for School Technology Pilot

Section 7.40. ADM Conformity

Part IX. Universities

Section 9.9 Future Teachers of NC Scholarship Loan Program

Section 9.10 Principals Executive Program

Part X. Department of Health and Human Services

Section 10.9 Collaboration Among Departments of Administration, Health and Human Services, Juvenile Justice and School-Based Child and Family Team Initiative

Section 10.10 Comprehensive Treatment Services Program/Establishment of Task Force on the Coordination of Children’s Services

Section 10.20 Evaluation of Educational Services to Students with Hearing and Visual Impairments

Section 10.23 Funds for School Nurses

Part XVI. Department of Crime Control and Public Safety

Section 16.8 Study Gang Activity

Part XXVIII. Salaries and Benefits

Section 28.15 All State-Supported Personnel/Salary Increases

Section 28.22 State Health Plan Changes Effective for Fiscal Year 2007-2008

Section 28.22A State Health Plan Changes Effective for Fiscal Year 2008-2009 Fiscal Year

Part XXX. Fees

Section 30.9 Collection of Outstanding Fines and Fees by the Courts

Part XXXI. Tax Law Changes

Section 31.10 Expand Sales and Use Tax Refund for Certain Aircraft Manufacturers

Section 31.16 State Assume Medicaid Responsibilities

Section 31.17 Local Option County Taxes

Section 31.20 Sales Tax Refund Research Supplies

Section 31.22 Data Center Sales Tax Exemption