About the NC SBE SBE Meeting Information SBE Policy Manual Advisory Councils, Boards and Commissions Legislative Report Legal Affairs On the Road Education News Resources HOME	Report on Education Legislation Introduction It was three months into the new fiscal year when the General Assembly approved the state's budget for the biennium. The budget protects some of the key education improvement initiatives at the same time that it boosts spending for key school needs. In a session that covered all four seasons, the longest session in the history of the state, lawmakers kept public schools as a chief priority, even in the face of a serious budget situation. The Legislators appropriated funds to help some of North Carolina's neediest students and schools. They approved small increases in teacher and other employees' salaries, established a new pre-school program (More at Four) requested by the Governor and made a start to lower some class sizes. Educators across the state were relieved when legislators approved ABCs accountability incentive awards of some $93 million for school employees. Some school employees had expressed concern that these funds would be cut to help make up the shortfall. Other areas were not so fortunate. Central offices, regional education service alliances and the Department of Public Instruction all saw their budgets cut. Even so, the budget package raises an additional $1 billion over the next two years through a half-cent sales tax increase, a half-percent increase in income tax rates for some taxpayers, and additional taxes on various items. Teacher salaries will continue to increase, on average at approximately 2.86 percent, while principals' salaries will increase by an average of 2.93 percent. Other school employees and state employees will receive an annual $625 increase. Thirty-six high priority schools, schools with 80 percent or more of their students eligible for free or reduced price lunch and with 45 percent or more of students performing below grade level, will receive additional funds for class size reduction, extended employment for teachers, and additional instructional support positions. Schools that are continually low-performing on the ABCs accountability report also will benefit from funds to reduce class sizes, extend contracts for teachers and add days of instruction. Key special provisions were approved to study the state's testing program, help close achievement gaps, revise professional development for public school teachers, and fund teacher recruitment efforts. Report on Education Legislation includes the continuation, expansion and capital budget and a synopsis of all the special provisions and ratified bills relating to education from the 2001 session. The complete bills and special provisions and a list of local bills are included in the Appendix. For additional information on the actions of the General Assembly, please contact the State Board of Education's Legislative Office, Education Building, 301 N. Wilmington St., Raleigh, NC 27601-2825; (919/807-3403). The DPI web site, www.ncpublicschools.org, has an extensive section on the legislature. Editor's Note The General Assembly was still in session when this publication was printed in October. Regular updates of education legislation and any supplements to this publication will be available on the Web at www.ncpublicschools.org.   Introduction Conference Report on the Bienium Budget Summaries of Special Provisions Bill Summaries House Bills Senate Bills Appendix Index of Chaptered Bills Budget Bill Chaptered Bills List of Local Bills    About this Publication Material included in the Report on Education Legislation was compiled by Ann E. Berlam, State Board of Education's Interim Legislative Director, with assistance from Jamie Woodlief, Legislative Program Assistant and Ellen Phelps, Institute of Government Intern. The booklet was produced and printed by the Division of Communications and Information: Kay Williams, Director. Conference Report on the Biennium Budget   Public Education 2001-2003 FY 2001-2002 FY 2002-2003 Total Budget Approved $5,923,802,924 $6,021,031,149 A. More Accurate Projection of Budget Requirements     Additional Adjustments in Average Salary Projections In addition to the annual Continuation Budget adjustment for average budgeted salary of certified personnel, a more recent review of certified personnel salaries, from updated salary data, identified an additional reduction in projected salary needs for FY 200102. ($8,497,668) R ($8,497,668) R School Bus Purchases Reduce funding for FY 200102 based on a revised school bus replacement schedule. ($23,915,892) NR   Payments for Teacher Unused Vacation Days Adjust funding to reflect recent expenditure experience. ($4,000,000) R ($4,000,000) R Mentor Pay Reduce funding to reflect recent expenditure experience. ($3,000,000) R ($3,000,000) R Transportation Adjustment: Bus Driver Physicals The Division of Motor Vehicles is delaying the implementation of the requirement that bus drivers must have a physical examination every two years. Twenty-five thousand ($25,000) will remain in the budget for pilot projects. ($535,000) R ($535,000) R Transportation Adjustment: Diesel Fuel Cost The economic forecast models project a 10.5% decline in diesel fuel cost from the current year's average. The current average cost is $0.92 per gallon and the Continuation Budget was based on an estimated cost of $l.05 per gallon. This adjustment budgets diesel fuel at $0.92 which is the current level. All school buses utilize diesel fuel. ($2,990,000) R ($3,048,890) R Transportation Adjustment: Inventory Adjustment June 30, 2000 inventory levels (oil, tires, and parts) were approximately 62% of annual needs. This onetime reduction is to reduce current inventory levels to a more optimum level. ($4,000,000) NR   Revised Projection of Average Daily Membership To eliminate the possibility of duplicating the inclusion of some students in projecting a local school administrative units average daily membership and to project a more realistic estimate of future student populations. ($20,199,068) R -235.00 ($16,227,221) R -175.00 Classroom Materials/lnstruction Supplies/Equipment Adjust the increase for inflation to a 3% growth (in line with the Consumer Price Index) from the 5% growth used in the Continuation Budget. ($1,140,499) R ($1,140,499) R School Building Administration Estimated new public schools opening in FY 200102 has been revised to 35 (from 70). ($2,388,140 ) ($2,388,140 ) R At Risk Student Services/Alternative Schools Each high school receives funding to employ a school safety officer. The estimate of new high schools scheduled to open in FY 2001-02 has been reduced to 10 (from 20) ($529,732 ) R ($529,732 ) R Charter School Reserve Funds in this category are used to distribute the applicable State funding to charter schools for students attending a charter school who were not previously in a public school (private or home schooled). Since the number of charter schools has reached the maximum legislated number of 100, the reserve can be reduced to $2 million in FY 200102 and $1 million in FY 200203. ($ 2,404,513) R ($2,404,513 ) R Driver Education To reflect reductions to the Highway Fund for revised Average Daily Membership Projections and an adjustment based on average annual reversions. Reduction to Receipts: ($1,830,739) $0 R $0 R B. Reduction of Administration Cost     Safety Assistance Teams Eliminates funding used for Statewide consultants. $500,000 R $ 500,000 R Regional Education Service Alliances Reduce State funding distributed to local school administrative units that could be used to support the Regional Education and Technical Assistance Centers to $3 million (55.4% reduction). ($3,732,100) R ($3,732,100 ) R Central Office Administration A 1.97% reduction from FY 200001 allocations for each local school administrative unit. The State Board is directed to develop a revised formula for FY 200203 that eliminates any permanent hold harmless in the formula. ($3,300,000 ) R ($3,300,000 ) R Uniform Education and Reporting System (UERS) Based on the current NC WISE implementation schedule, a one year reduction in funding is possible. FY 2001-02 funding level will be $12,518,927. ($2,500,000 ) NR ($ 0 NR Department of Public Instruction The Department of Public Instruction will eliminate at least 25 positions and will reduce other costs. $533,730 can be transferred from the UERS budget in FY 2001-02 and an additional $466,270 in FY 2002-03 to DPI to reduce contractual costs by internalizing work to support the Uniform Education and Reporting System (UERS). This transfer is to allow Currently contracted services to be converted to positions. 25 Identified positions ($942,344) Contracted Services ($1,502,269) Cellular Phones ($11,505) Equipment ($194,251) Elimination of Stds Board ($175,041) Contracted Personal Services ($41,775) Travel ($195,503) Other Aid ($73,000) Printing ($24,506) Postage ($23,876) Dues and Subs ($15,930) ($3,200,000 ) R ($3,200,000 ) R C. Other Budget Adjustments     Vocational EducationTech Prep Eliminates State funding for Tech. Prep. Federal funds in excess of $3 million support this program. ($100,000 ) R ($100,000 ) R Appropriations to Non-Public School Agencies Eliminate funding for AVID pilot program. Reduce funding to $1,786,875 NR the following agencies by 50% and make non-recurring: A+ Schools, Explornet, TQE, Geographic Alliance, Cued Speech Center, Global Curriculum. Reduce funding to Schools Attuned, Public School Forum, Cities/Communities in Schools, NC Network, and Teacher Cadet by 10%. ($3,955,116 ) R ($1,786,875 ) R ($3,955,116 ) R D. Improving Student Performance       Targeted Class Size Reduction and Instruction a. In schools with 80% or more of the students eligible for free or reduced lunch and with 45% or more of students 179.60 179.60 performing below grade level, lower class size in grades K3 to 1:15. Require teachers allotted for these grades to be assigned to teach in these grades. ($8,062,603 ) R 179.60 ($8,062,603 ) R 179.60 Targeted Class Size Reduction and Instruction b. Extend the contract for all teachers in these targeted schools for five (5) days in 200102 and ten days (10) days in 200203. The first year days will be for staff development in methods to individualize instruction in smaller classes. The second year will add 5 instructional days. ($973,455 ) R ($973,455 ) R Targeted Class Size Reduction and Instruction c. Provide one additional instructional support position for each of these targeted schools 37.00 37.00 $1,840,380 R $1,840,380 R Targeted Class Size Reduction and Instruction d. Eliminate regular dollar allotment for teacher assistants in grades K3 in these targeted schools due to significantly lower class size. ($8,068,580 ) R ($8,068,580 ) R Targeted Class Size Reduction and Instruction e. Provide funding for outside evaluation of targeted class size reduction initiatives. ($500,000 ) R ($500,000 ) R Targeted Class Size Reduction and Instruction: Kindergarten Lower class size ratio in kindergarten to one teacher for every 19 students in 2001-02 and one teacher for every 18 in 2002-2003 ($12,045,179 ) R 268.50 ($26,082,252 ) R 581.00 Class Size Reduction/lnstruction: Continually Low Performing a. Reduce class size in schools identified by the State Board 10.50 10.50 of Education as continually low performing in grades K3 to 1:15 and in grades 4-5 to 1:17. ($471,366 ) R 10.50 ($471,366 ) R 10.50 Class Size Reduction/lnstruction: Continually Low Performing b. Reduce class size allotment in middle schools (Grades 68) 26.90 26.90 to 1:17 and in high schools to 1:20 for continually low performing schools. ($1,207,595 ) R 26.90 ($1,207,595 ) R 26.90 Class Size Reduction/lnstruction: Continually Low Performing Schools c. Extend the contracts for additional teachers in elementary schools and for all teachers in middle and high schools by 5 days in 200102 for staff development and add an additional 5 days of instruction for middle and high schools in 2002-03. These apply for schools identified as continually low performing. ($128,295 ) R ($307,730 ) R Teacher Recruitment Initiatives a. Have the Education Oversight Committee study methods to provide benefits to part time teachers to attract more certified teachers back into the classroom.     Teacher Recruitment Initiatives b. Teacher Assistant Scholarships Additional scholarship funds for teacher assistants taking courses at community colleges that are prerequisites for teacher certification programs. (Major initiatives in the UNC budget will improve availability of teacher education programs for teacher assistants.) ($1,000,000 ) R ($1,000,000 ) R Teacher Recruitment Initiatives c. To attract teachers in the shortage fields of mathematics, science and special education and to entice teachers in these specialties to teach in schools with large numbers of at risk students. In middle schools and high schools with 80% or more of the students eligible for free or reduced lunch or with 50% or more of students performing below grade level, provide an annual bonus of $1,800 (paid monthly with matching benefits). Teachers must be certified in and teaching in these fields and will remain eligible for the bonus as long as they continue to teach in eligible schools. ($1,500,000 ) R ($1,500,000 ) R ABC Bonuses Provide funding for ABCs bonuses for schools meeting or $93,100,000 NR exceeding expected growth in 200001. ($93,100,000 ) R $93,100,000 NR ($93,100,000 ) R ABC Bonuses: Pilot Districts Provide funding for school personnel in five (5) pilot school districts for additional bonuses earned under the disaggregated performance pilot project directed by the General Assembly in 1999 (Sec. 8.36, SL 1999237: HB 168). If a school achieves the pilot program goals, all certified personnel assigned to the school will receive up to $750 and teacher assistants up to $325 (these awards are in addition to standard ABC bonuses). LEAs not eligible for low wealth or small county supplemental funding must contribute 25% of the total cost of the bonuses. ($4,600,000 ) NR   Character Education Funding for expansion of character education program. ($200,000 ) R ($200,000 ) R Children with Special Needs Increase funding per student for children with special needs. The appropriation per funded headcount increases $37.98 to $2,650.28 (before increases for salary increases). $3,000,000 R $3,000,000 R Improving Student Accountability Increase funding for additional instruction for students performing below grade level. $5,000,000 R $5,000,000 R Limited English Proficiency Appropriate additional funds to serve students with limited proficiency in English. This brings the total funding for this purpose to $23,037,655 for FY 200102 (prior to increases for any legislated salary increase). $1,000,000 R $1,000,000 R Low-Wealth Funding Increase funding for school districts in counties with less ability to generate local resources for public schools. $4,000,000 R $4,000,000 R Small County Funding Increase formula funding to counties with fewer than 3,239 Students (or 4,080 if property tax base per student is lower Than state average). This will increase base allotment to Each eligible LEA by $74,074. $2,000,000 R $2,000,000 R E. Other Increases       Instructional Supplies Expand funding for instructional supplies. Language will $4,100,000 NR direct that each LEA will allocate a minimum of $100 to each state-paid teacher for purchase of supplies. $ 0 R $4,100,000 NR $ 0 R School Accountability Report Cards Funds for the Education Cabinet to develop, publish, and distribute school accountability report cards. The cards should be designed to supply parents information on school characteristics and performance. $200,000 R $200,000 R Average Daily Membership Contingency Reserve Provides additional funds to the State Board of Education to address transitional year funding for local school administrative units with new charter schools and for first month allotment adjustments to local school administrative units with higher than expected enrollment growth $500,000 R $500,000 R NC WISE OWL's OnLine Subscriptions NC WISEOWL is operated by the North Carolina Department of Public Instruction and offers online resources (periodicals, encyclopedia, etc.) for K12 teachers and students. Federal resources that have been discontinued have covered the subscription cost. The Department of Public Instruction will work collaboratively with the Department of Cultural Resources and report to the Joint Information Technology Appropriations Subcommittee by March 15, 2002 as to the feasibility of merging NCWISE OWL with NCLIVE (which also offers online subscription services.) $628,000 R $628,000 R             Total Legislative Changes ($117,333,543 ) R $73,170,983 NR ($98,842,603 ) R $0 NR             Total Position Changes $287.50 $660.00             Revised budget $5,879,640,364 $5,922,188,546     Summary of Special Provisions--Budget SB 1005, Appropriations Act of 2001. Part V. BLOCK GRANTS Section 5.1 Preventative Health Services Block Grant (f) States that if federal funds are received under the Maternal and Child Health Block Grant for abstinence education for FY 2001-2002, those funds shall be transferred to the State Board of Education to be administered by the Department of Public Instruction (DPI). Orders DPI to use those funds to establish an Abstinence Until Marriage Education Program. (z) Creates a position in Office of Secretary of Health and Human Services to enhance activities for HIV/AIDS awareness. Requires DPI and other State agencies to ensure incorporation of developmentally appropriate HIV/AIDS education, awareness, and outreach information into their programs. Part VI. GENERAL PROVISIONS Section 6.18 Application of Tort Claims to Bus Drivers Amends tort claims law to allow an employee or former employee to request the Attorney General to defend any civil action brought against the bus driver, transportation safety assistant, or monitor of a public school bus. Allows the Attorney General to refuse to defend proceeding brought against an employee or former employee under certain circumstances written in the law. Part VII. DEPARTMENT OF ADMINISTRATION Section 7.2 Modifications to the State Employee Incentive Bonus Program (b) Adds Charter School employees to those allowed to participate in the State Employee Incentive Bonus Program. Part XV. INFORMATION TECHNOLOGY Section 15.2 Security Standards for State Information Technology Allows Local School Administrative Units (LEAs) to develop their own security standards that are comparable to or exceed those set by the State Chief Information Officer (CIO) under this section if they so choose. Charges the CIO with consulting with Leas in reviewing their new security standards. Section 15.6 E-Procurement/ Procurement Card Program (b) Allows any LEA operating a functional electronic procurement system established prior to September 1, 2001, until May 1, 2003 to continue to operate that system independently or many opt into the NC E-Procurement Service. Notification shall be made by January 1, 2002, and annually thereafter of the intent to participate in the NC E-Procurement Service. (d) Establishes a procurement card program for State agencies, community colleges, constituent institutions of UNC, and Leas Allows Secretary of Administration to adopt temporary rules for implementation and operation of the program to include appropriate order limits. Authorizes use of procurement cards only through the E-Procurement Service. Section 15.7 North Carolina Information Highway Sites Requires Office of Information Technology Services, in consultation with DPI, to evaluate utilization of the existing NCIH sites in public schools, consider appropriate actions relative to those public school sites that have experienced low utilization of NCIH, and how funding for low-utilization sites should be reallocated to provide NCIH service to other public schools that have higher usage. NCIH may reallocate funding for NCIH sites in public schools based on recommendations of DPI. Part XXI. DEPARTMENT OF HEALTH AND HUMAN SERVICES Section 21.60 Comprehensive Treatment Services Program (a) Charges the Department of Health and Human Services (DHHS), in conjunction with the Department of Juvenile Justice and Delinquency Prevention, the Department of Public Instruction, and other affected State agencies, with establishing the Comprehensive Treatment Services Program for children at risk for institutionalization or other out-of-home placement. Stipulates that the program shall be designed to provide appropriate and medically necessary residential and nonresidential treatment alternatives, and that it be targeted for non-Medicaid eligible children. (c) Instructs DHHS to collaborate with other agencies, including DPI and Leas, to eliminate cost shifting and facilitate cost sharing with respect to treatment and placement services. (d) Requires DHHS to execute a Memorandum of Agreement between itself, DPI, and other affected State agencies before allocating funds for program services. (g) Requires DHHS, in conjunction with DPI and other affected agencies, to submit an interim report on various aspects of the program on December 1, 2001, and a final report no later than April 1, 2002, to the House of Representatives and Senate Appropriations Subcommittees on Health and Human Services and the Fiscal Research Division. Section 21.61 Whitaker School Instructs DHHS to work with families and guardians, DPI, appropriate Leas, and other agencies to develop a plan for the transition of children from the Whitaker School to their homes or alternative facilities. Section 21.76B Development of More at Four Pilot Program Appropriates $6.4 million to develop and implement "More at Four," a voluntary prekindergarten pilot program for at-risk four-year-olds to ensure all children have an opportunity to succeed in kindergarten. Stipulates that DHHS and DPI will establish the "More at Four" Task Force to oversee the development and implementation of the pilot program. Requires pilot program to be distributed geographically to ensure adequate representation of the diverse areas of the State, including underserved areas. Requires an independent research organization outside DHHS and DPI to design an evaluation component of the program. Does not allow state funds appropriated for this program to supplant current expenditures of State and federal funds allocated and expended on behalf of young children. Requires DHHS and DPI to report to the Joint Legislative Education Oversight Committee by January 1, 2002, May 1, 2002, and a final report to the 2003 General Assembly. Section 21.83 Preschool Programs for the Deaf Closes the State-operated preschool programs for the deaf October 1, 2001. Requires DHHS and DPI to develop a transition plan for the appropriate placement of the children located at these preschool sites. Part XXVII. DEPARTMENT OF TRANSPORTATION Section 27.27 Department of Transportation to Evaluate the Locations of Proposed Public and Private Schools to Enhance Traffic Operations and Safety Requires DOT to coordinate with all public and private entities that are planning schools to provide written recommendations and evaluations of driveway access and traffic operational and safety impacts on the State highway system resulting from the development of the proposed sites. All public and private entities acquiring land for a new school or prior to beginning construction of a new school, relocating a school, or expanding an existing school shall request from DOT this written evaluation and written recommendation to ensure all appropriate criteria are met. Requires DOT to respond within 60 days. Part XXVIII. PUBLIC SCHOOLS Section 28.1 Litigation Reserve Funds Do Not Revert Provides that funds in the State Board of Education's Litigation Reserve not expended or encumbered by June 30, 2001 shall remain available for expenditure until the following June 30. Also stipulates that the State Board of Education may expend up to $500,000 in the 2001-2002 fiscal year from unexpended funds for certified employees' salaries to pay expenses related to pending litigation. Section 28.2 Children with Disabilities Allocates funds for children with disabilities at the rate of $2650.28 per child, for a maximum of 158,825 children. States that each local education agency (LEA) shall receive funds for the lesser of all children identified as children with disabilities, or for 12.5% of the 2001-2002 allocated average daily membership (ADM) in that LEA. Section 28.3 Funds for Academically Gifted Students Allocates $879.10 per each academically or intellectually gifted child, but for no more than 52,042 children for the 2001-2002 school year. Stipulates that each LEA shall receive funding for no more than 4% of its average daily membership. Section 28.4 At-Risk Student Services/ Alternative Schools Allows the State Board of Education to use up to $200,000 of funds in the Alternative Schools/ At-Risk Student allotment each year for the 2001-2002 and 2002-2003 fiscal years to implement G.S. 115C-12(24). Section 28.5 Uniform Education Reporting System (UERS) Stipulates that funds appropriated for the UERS shall not revert at the end of the 2001-2002 and 2002-2003 fiscal years, but shall remain available until expended. Section 28.6 Supplemental Funding in Low-Wealth Counties Provides additional funding to low-wealth counties to enhance their instructional programs. Expands the use of these funds to pay an amount not to exceed $10,000 of the plant operation contract cost charged by DPI for services. Encourages Leas to spend at least 25% of funds to improve academic performance of children in grades 3-8 who are performing at Level I or II on reading or math end-of-grade tests (E-O-Gs), and children in grades 4 and 7 who perform at Level I or II on their writing tests. States that Leas must report to the State Board on an annual basis on funds used for this purpose; the State Board must in turn report this information to the Joint Legislative Education Oversight Committee. Also requires a report by May 1, 2002 to the Joint Legislative Education Oversight Committee if counties have supplanted funds. Section 28.7 Small School System Supplemental Funding Appropriates funds to small counties with an average daily membership of fewer than 3,175 students and to counties with an ADM of 3,175 to 4,000 students with a county-adjusted property tax base per student below the state-adjusted property tax base. Encourages these counties to spend at least 20% of funding on students performing at Level I and Level II on the reading or mathematics EOGs in grades 3-8, or at Level I and II on the writing tests in grades 4 and 7. Requires local boards of education to report to SBE on an annual basis on the use of this 20% and the State Board to report this information to the Joint Legislative Education Oversight Committee. Section 28.8 Funds to Implement the ABCs of Public Education Program Appropriates ABCs incentive awards to schools that achieve higher than expected improvements of up to $1,500 for each teacher or certified staff member and $500 for each teacher assistant. Allows incentive awards for schools that meet expected improvements of up to $750 for each teacher and certified staff member and $375 for each teacher assistant. Authorizes the State Board to use State Aid to Local School Administrative Units funds for assistance teams in low-performing schools. Section 28.9 Students with Limited English Proficiency Instructs the State Board to develop guidelines for LEP students. Awards funds to Leas if the ADM of an LEA or charter school has at least 20 LEP students or if LEP students comprise at least 2.5% of the ADM at an LEA or charter school. Stipulates that no LEA or charter school may receive funds for more than 10.6% of its ADM. Requires that funds be used for classroom teachers, teacher assistants, tutors, textbooks, classroom materials/ instructional supplies/ equipment, transportation costs, and staff development for LEP students. Mandates that these funds be used to supplement, not supplant local funds. Requires the Department of Public Instruction prepare a headcount of all LEP students by December 1 of each year. Stipulates that students in this headcount are to be assessed in their level of English proficiency at least once every three years, and that those scoring "superior" on the State's standard English language proficiency assessment instrument shall not be included in the headcount. Section 28.10 Expenditures for Driving Education Certificates Authorizes the State Board of Education to use funds appropriated for drivers education for the 2001-2002 and 2002-2003 fiscal years for driving eligibility certificates. Section 28.11 Teacher Salary Schedules Establishes the teacher salary schedules for 2001-2002 for teachers classified as "A" teachers, "M" teachers, and those with NBPTS certification. Establishes the longevity rate for teachers at the following amounts: 1.5% of base salary for 10- 14 years of State service, 2.25% for 15- 19 years, 3.25% for 20- 24 years, and 4.5% for 25 years or more of State service. Provides salary supplements of $126 per month for teachers with a six-year degree, and $253 per month for teachers with a doctoral degree. Establishes the school psychologist salary schedule at the fifth step of the "M" schedule. Pays speech pathologists certified at the masters degree level and audiologists certified at the masters degree level to be paid on the school psychologist schedule. Amends the definition of teacher in G.S. 325(a)(6) to include instructional support personnel. Section 28.13 School Administrator Salary Schedules Establishes base salary schedule for principals and assistant principals for the 2001-2002 fiscal year. Sets the beginning classification for principals in alternative schools at the Principal III level. Classifies principals in alternative schools who supervise 33 or more teachers according to the number of teachers they supervise. Allows a principal or assistant principal to continue to receive any additional State-funded percentage increases earned for the 1997-98, 1998-99 and the 1999-2000 for improvement in student performance or maintaining a safe and orderly school. Provides monthly supplements for principals and assistant principals who hold a six-year degree ($126) or a doctoral degree ($253). Section 28.14 Central Office Salaries Sets the ranges for central office staff salaries for the 2001-2002 fiscal year, providing for a $625 raise for all such employees, and stating that the top end of each employee's range shall increase by $625 per annum. Allows for an additional salary supplement of $126 per month for superintendents, assistant superintendents, associate superintendents, directors/coordinators, supervisors, and finance officers at the six-year degree level, and a salary supplement of $253 per month for those among this number with doctoral degrees. Stipulates that the State Board shall develop a new formula for allocating funds for central office administration for the 2002-03 school year not to include a permanent hold-harmless provision. Section 28.15 Noncertified Personnel Salaries Provides for a $625 raise for the 2001-2002 fiscal year for all non-certified personnel whose salaries are supported from the State's General Fund. Designates that part-time employees shall receive a pro rata pay increase based on the number of hours worked.   Section 28.16 High School Exit Exams Authorizes State Board of Education to use up to $3 million of the funds appropriated to State Aid to Local School Administrative Units for the 2001-2002 fiscal year to continue to develop a high school exit exam; purchase equipment for scoring tests, including the new computer adaptive exam for eligible students with disabilities; and revise the reading and writing assessments. Section 28.17 Fairness in Testing Program (a) Requires SBE to provide to the Joint Legislative Education Oversight Committee a detailed analysis of the resources allocated to meet the needs of all students subject to the Student Accountability Standards and to submit recommendations regarding other resources that would best assist students to meet these standards. (b) Expands authority of principals to grade and classify pupils to consider the pupil's classroom work and grades, scores on standardized tests and the best educational interests of the student. Does not allow decisions to be made only on basis of standardized test scores. Effective December 1, 2002. (c) Requires local boards of education to adopt policies related to appeals to include opportunities for parents and guardians to discuss decisions to retain students. (d) Requires SBE to study benefits of providing students' parents or guardians with copies of state tests and to consider the cost of maintaining the integrity and reliability of the tests if such a policy is implemented. Report to be made to Joint Legislative Education Oversight Committee by March 31, 2001. (e) Adds new section to law for LEAs to identify students who have been placed at risk for academic failure with identification to occur as early as can be reasonably done. Requires a personal education plan at the beginning of the school year for any student not performing at grade level as identified by E-O-G tests. Stipulates that Leas shall provide activities for these students and transportation free of charge. Effective December 1, 2001. (f) Requires SBE policies on testing children with disabilities to provide broad accommodations and alternate methods of assessment, prohibit use of statewide tests as sole determinant of decisions about a child's graduation or promotion and to provide parents with information. State Board shall report its proposed policies and changes to Joint Legislative Education Oversight Committee. (g) Does not allow schools to devote more than two days of instructional time per year to the taking of practice tests. (h) Does not allow students to be subject to field tests or national tests during the two-week period preceding the administration of E-O-G or E-O-C tests or the school's regularly scheduled final exams. Allows schools to participate in more than two field tests only if the school volunteers through a vote of its school improvement team. (i) Calls on the Joint Legislative Education Oversight Committee to study the State's testing program including such items as number of tests, whether to use nationally developed tests, grades in which tests are given, and other items. Education Oversight to report to 2002 Session. (j) Calls on State Board to develop and report to Joint Legislative Education Oversight   Committee on its objectives for the Statewide Testing Program and on the implementation of that program. Section 28. 18 Pilot Program Authorizing the Use of Mentor Funds for Full-Time Mentors Orders the State Board of Education to establish a pilot program to permit the Charlotte-Mecklenburg, Forsyth County and Wake County Administrative Units to use funds allocated for mentors to pay full-time mentors. Mandates that these funds be used only for teachers and instructional support personnel assigned to newly certified teachers, second-year teachers who were assigned mentors during the prior school year, and entry-level instructional support personnel who have not previously been teachers. Stipulates that these funds shall be used only for salary supplements to teachers and instructional support personnel serving as mentors, and those employed solely as mentors. Establishes that the latter group shall be paid for each individual being mentored, up to 15 individuals, at an amount equal to the amount of the salary supplement for a mentor. Charges the Charlotte-Mecklenburg, Forsyth and Wake County Boards of Education to report annually to the State Board of Education their findings on this program's effects on teacher retention. Orders the State Board of Education to report this information to the Joint Legislative Education Oversight Committee. Section 28.19 Support for Initially Certified Teachers (a) Orders the State Board of Education to study the mentor program and the performance-based licensure program to determine if they provide adequate support for initially certified teachers. Requires the State Board to report these results to the Joint Legislative Education Oversight Committee by February 1, 2002. (b) Modifies the Performance-Based Licensure Program to provide additional support for initially certified teachers by offering up to three days of approved paid leave during their second year of employment to work on their performance-based product and to receive three days during their third year if the requirements have not been successfully completed. Section 28.20 Phase in ADM Reductions Due to Charter Schools (a) Allows the State Board of Education to use funds from the Reserve for Average Daily Membership Adjustments to ensure that Leas projecting an ADM loss of greater than 5% as a result of a new charter school's opening will not lose more than 5% of their funding in the first year of that school's operation. Sets forth methods by which this special allotment will be phased out in subsequent years. (b) Specifies that an LEA that received funds in 2000-01 pursuant to law in 2000 due to the loss of funds due to shifts of enrollment to charter schools shall receive 100% of the 2000-01 allotment in 2001-02 and receive 50% of the 2000-01 allotment in 2002-03. Section 28.21 Medicaid Outreach Sets procedural guidelines for the case that a Medicaid outreach reimbursement submitted by an LEA and paid by a federal agency is later deemed inappropriate by that agency. Orders DPI to request that federal agency offset the overpaid amount against the next quarterly reimbursement due to the LEA. States that if the agency does not allow such an offset, DPI must request repayment from the LEA. Further stipulates that if the LEA fails to provide repayment, DPI may withhold the overpaid amount from State funds allocated for the central office for that LEA.   Section 28.22 Funds for Noninstructional Support Personnel may be used for Staff Development Amends G.S. 115C105.25(b) to provide that up to 3% of State funds allocated for noninstructional support personnel may be transferred for staff development purposes. Section 28.24 Study Textbook Distribution System Requires the State Board of Education to contract for an analysis of the best and most efficient method of textbook distribution management to the local schools. Mandates that the Board prepare a Request for Proposal (RFP) outlining the scope of analysis required, and select a private consultant to perform the analysis. Stipulates that before awarding the contract, the Board must present the RFP to the Joint Legislative Education Oversight Committee for comment. Stipulates that the Board must then report to the Committee on the results of the consultant's analysis and its own recommendations for changes in the current system, by April 1, 2002. Section 28.25 Abolish the North Carolina Standards Board for Public School Administration Abolishes the North Carolina Standards Board. Makes various conforming statutory changes. Assigns the State Board of Education as the new administrator of the North Carolina Public School Administrator Exam. Section 28.26 Guidelines for Charter School Enrollment Amends G.S. 115C-238.29D(d) to allow a charter school to increase its enrollment during the second year and annually thereafter by up to 10% of the previous year's enrollment, or in accordance with the school's planned growth as authorized in the charter, without it constituting a material revision, and without requiring prior approval of the State Board of Education. States that other enrollment growth shall be considered a material revision and must be submitted to the State Board for approval, which may, in turn, approve that growth only if it meets criteria specified in the statute. Section 28.27 Charter School Advisory Committee/ Charter School Evaluation States that the State Board of Education may spend up to $50,000 a year from State Aid to Local School Administrative Units for the 2001-2002 and 2002-2003 fiscal years to continue to support a charter school advisory committee and to continue to evaluate charter schools. Section 28.28 Teacher Academy Amends G.S. 116-30.01(a) to state that the Teacher Academy shall include professional development programs that focus on teaching strategies for teachers assigned to at-risk schools. Specifies that the State Board shall identify professional development programs for teachers assigned to smaller classes in kindergarten through fifth grade, which the Teacher Academy shall provide using at least 10% of its 2001-2002 budget. Section 28.29 Modify Law Regarding Children with Disabilities Amends G.S. 115C-121 to revise the membership of the Council on Educational Services for Exceptional Children. Modifies the duties of the Council. Requires the Joint Legislative Education Oversight Committee, in consultation with the Department of Public Instruction, to examine the State laws governing special education and related services to identify and recommend statutory changes needed to bring State law in conformity with recent changes in the federal Individuals with Disabilities Education Act (IDEA). Dictates that the Committee shall report its recommended changes to the 2002 Session. Section 28.30 Closing the Achievement Gap (a) Mandates that beginning in school year 2002-03 State Board shall include a "closing the gap" component in its measurement of educational growth in student performance for each school. Component shall measure and compare the performance of each subgroup in a school's population to ensure all subgroups are meeting State standards. (b) Requires SBE to report on its plan to include measurement of "closing the gap" in student performance to Joint Legislative Education Oversight Committee by January 15, 2002. (c) Mandates that all schools that serve students in kindergarten or first grade to include a plan for preparing students to read at grade level by the time they enter second grade in their school improvement plan. Requires parents to be notified when their child is not reading at grade level by second grade. (d) Encourages SBE to consider whether there are any standards or other criteria from kindergarten, first and second grades that could be included in the State's assessment of a school's performance and growth for the ABCs. (e) Adds to the duties of the State Board to adopt model guidelines and policies for the establishment of local task forces on closing the academic achievement gap for local boards of education to use. (f) Amends the reporting on dropout rates to include the numbers of student who have dropped out of school, been suspended, been expelled, or been placed in an alternative program and to report annually to the Joint Legislative Education Oversight Committee. (g) Clarifies terms of members on the Commission on Improving the Academic Achievement of Minority and At-Risk Students. (h) Specifies when Commission shall report to the General Assembly. (i) Authorizes Commission to determine the extent to which additional fiscal resources are needed to close the academic achievement gap and keep it closed. Section 28.31 Clarify Law Regarding Mentors for Second-Year Teachers Clarifies law regarding State funds appropriated to provide mentors for teachers during their second year of teaching to specify that the funds may be used to provide mentors for teachers whose first year of teaching was in a public school in North Carolina, a public school in another state, a private school, or a charter school. Section 28.32 Funds for the Testing and Implementation of the New Student Information System Allows the State Board of Education to transfer up to $1 million in funds appropriated for the   Uniform Education Reporting System for the 2001-2002 fiscal year to the Department of Public instruction to lease or purchase equipment necessary for the testing and implementation of NC WISE, the new student information system in the public schools. Section 28.33 Expenditure of Funds to Improve Student Accountability Dictates that funds appropriated for FY 2001-2002 and 2002-2003 for Student Accountability Standards shall be used to assist students, grades 3 through 8, in performing at or above grade level in reading and mathematics as determined by the State's end-of-grade tests. Establishes guidelines by which the State Board of Education should allocate these funds to Leas States that these funds shall be used exclusively to improve the performance of students performing at Levels I or II on the grades 3 through 8 reading or math end-of-grade tests, grades 4 or 7 writing tests, or high school end-of-course tests. Allows local boards of education to transfer other available funds into this category. Authorizes the principal of a school receiving these funds, in consultation with the faculty and the school-based management team, to implement plans to expend them. States that the continuation budget funds previously appropriated for NC Helps and for the middle school pilot project shall be transferred to this allocation category. Specifies that funds allocated for this purpose shall be distributed to Leas within 30 days of the bill becoming law. Section 28.34 Study the Salaries of School Food Service Workers and Custodians Commissions the Joint Legislative Education Oversight Committee to study the salaries of food service workers and custodians employed by the public schools. Orders the Committee to report its finding to the 2002 Regular Session of the 2001 General Assembly. Section 28.36 Character Education Commissions the State Board of Education to use funds appropriated for character education to develop a model character education curriculum. Authorizes it to contract with an outside consultant to implement the provisions of the act. Section 28.37 Study of Salary Differentials for Instructional Personnel and for Instructional Support Personnel Requires the Joint Legislative Education Oversight Committee to study salary differentials for instructional and instructional support personnel, examining differentials based on degrees and other educational credentials, licensure or certification by State agencies, licensure or certification by private entities, and other factors. Orders the Committee to report its findings and recommendations to the 2002 Regular Session of the 2001 General Assembly. Section 28.38 Flexibility to Implement Base Budget Reduction Authorizes the Department of Public Instruction to use salary reserve funds and other funds in the Department's continuation budget to transfer and reclassify positions as necessary in order to implement the base budget reductions for the 2001-2003 biennium. Requires the State Board to report to the Joint Legislative Education Oversight Committee prior to May 1, 2001 on the implementation of this provision.   Section 28.39 Funds for Instructional Supplies Appropriates $100 per classroom teacher for classroom materials, instructional supplies, and equipment. Requires Leas to report to the Department of Public Instruction by February 15, 2001 on the implementation of this section. DPI shall report to the Joint Legislative Education Oversight Committee and the Joint Legislative Commission on Governmental Operations by April 1, 2002 on the effectiveness of the initiative. Section 28.40 NC WISEOWL Web Site Authorizes DPI to use funds appropriated to continue the subscriptions currently available on its NC WISEOWL web site for the 2001-2002 fiscal year. Orders DPI to work collaboratively with the Department of Cultural Resources' NC LIVE Program to most efficiently use the funds appropriated and to facilitate the process of accessing the subscriptions through NC LIVE in 2002-02. Requires DPI and Department of Cultural Resources to report the results of their collaboration and recommendations to the Joint Information Technology Appropriations Subcommittee by March 15, 2002. Section 28.42 Overtime for School Employees Provides for overtime compensation to be paid to employees who work as both teacher assistants and school bus drivers, and who work over forty hours a week. Stipulates that time-and-a-half shall be paid for these hours, or, if agreed upon by both employer and employee, up to 240 hours of compensatory time off may be granted at a time-and-a-half rate. Section 28.43 Funds for Teacher Recruitment Initiatives Authorizes the State Board of Education to use up to $200,000 of the funds appropriated for State Aid to Local School Administrative Units for FY 2001-2002 and 2002-2003 to enable teachers who have received NBPTS certification or who have otherwise received special recognition to advise the State Board on teacher recruitment and other strategic priorities. Section. 28.44 Limitation on Use of Kindergarten Funds Specifies that the maximum class size limits for kindergarten established by SBE for 2001-02 school year shall be reduced by one from the 2000-01 limits based on allotment ratio of 1:19; reduces by two in school year 2002-03 based on an allotment ratio of 1:18. Allows Leas to use teacher positions allocated to reduce kindergarten class size only to hire classroom teachers for kindergarten. Section 28.45 ExplorNet Audit Requires the State Auditor to audit ExplorNet for FY 1999-2000 and 2000-2001. Orders that no State funds appropriated for distribution to ExplorNet be disbursed until the State Auditor and the Office of State Budget and Management certify that it is capable of managing the funds properly. Specifies that 80% of any funds disbursed pursuant to this provision shall be distributed in the form of grants to Leas Section 28.46 Low-Wealth Transition Funds Provides funds to Leas in which low-wealth supplemental funding decreased by more than $1 million from the 2000-01 allotment to the extent funds are available in the ADM contingency reserve. Does not allow the funds to exceed 60% of the decrease in funding for the LEA.   Section 28.47 Substitute School Personnel/Unemployment Definition Amends the law to clarify that no substitute teacher or other substitute school personnel shall be considered unemployed for days or weeks when not called to work unless the individual is or was a permanent school employee regularly employed as a full-time substitute during the period of time for which the individual is requesting benefits. Section 28.48 School Bus Replacement Allows the state when replacing school buses during the 2001-02 school year in one of the two Leas with the lowest ADM for that LEA to retain at no cost one bus that would be declared surplus for use as a student activity bus. Section 29.1 Immediate Assistance to the Highest Priority Elementary Schools Appropriates $10, 876,438 for the 2001-2002 fiscal year, and $12,237,913 for the 2002-2003 fiscal year to be used to improve the performance of the State's 37 lowest performing elementary schools. These schools are defined as those in which over 80% of students qualified for free or reduced-price lunches, and no more than 55% of students performed at or above grade level in the 1999-2000 school year. Authorizes funds to be used to reduce class size in K-3 to 1:15; to pay teachers in 2001-02 who elect to extend their contract by five days for staff development and to extend all teacher contracts at these schools in 2002-03 by 10 days including five additional days of instruction; and to provide one additional instructional support position at each priority school. Does not allow funds for teacher assistants to be allotted to these schools. States that teacher assistants displaced from jobs in these schools shall be given preferential consideration for vacant teacher assistant positions at other schools, provided their job performance was satisfactory. Section 29.2 Immediate Actions to Address Teacher Shortage Appropriates $2.5 million for the 2001-2002 fiscal year, and $2.5 million for the 2002-2003 fiscal year shall be used to expand the pool of qualified teachers and to provide recruitment and retention incentives to high-quality teachers in low-performing schools and schools with shortages in certain areas of certification. Designates that $1 million in each of the above fiscal years shall be used to provide additional scholarship funds for teacher assistants enrolled in prerequisite courses for teacher certification programs. Designates that $1.5 million in each of these fiscal years is to be used to provide annual bonuses of $1,800 to teachers certified in and teaching in the fields of mathematics, science, or special education at middle and high schools with 80% or more of the students eligible for free or reduced lunch or with 50% or more of students performing below grade level in Algebra I and Biology. Clarifies law on what constitutes a demotion. Directs the Joint Legislative Education Oversight Committee by April 1, 2002 to study the effectiveness of providing benefits to part-time teachers as a means to recruit certified teachers back into the classroom; the effectiveness of different methods of providing these benefits; and the cost of recruitment effort. Also directs the Committee to study the potential benefits of increasing the size of the Teaching Fellows Program, especially with regard to the supply and retention of qualified teachers.   Section 29.3 Comprehensive Assistance to Continually Low-Performing Schools Amends G.S. 115C-105.37A to define chronically low-performing schools as those identified by the State Board of Education that have received State-mandated assistance and been designated by SBE as low performing for at least two of three consecutive years. States that the State Board shall provide these schools with a series of progressive assistance and intervention strategies, designed to improve and maintain student achievement. States that for schools that are low-performing for at least three out of four years, the State Board shall develop and implement a series of actions for providing assistance and intervention that are the least intrusive actions that are consistent with the need to improve student achievement. Section 29.4 Additions to the Local Superintendent's Plan to Improve a Low-Performing School Amends G.S. 115C-105.37(al) to include in the preliminary improvement plans submitted by a superintendent to the local board how the local superintendent and other central office administrators plan to work with and monitor the progress of a chronically low-performing school. Section 29.5 Appropriations for Continually Low-Performing Schools Appropriates $1,87,256 in the 2001-2002 fiscal year and $1,986,691 in the 2002-2003 fiscal year to be used to provide the State's chronically low-performing schools with tools needed to dramatically increase student achievement. Allows funds to be used for class size reduction in grades 4-5 to be 1:17, in grades 6-8 to be l:17 and in grades 9-12 to be 1:20. Also allows funds to be used for additional days for staff development in 2001-02 and for additional staff development and instructional days in 2002-03. Specifies that notwithstanding any other provision of law, the State Board may in 2001-02 only implement other intervention strategies that it deems appropriate. Section 29.6 Evaluation of Initiatives to Assist High-Priority Schools (a) Allows high-priority schools to remain eligible for these funds if they meet the expected growth for each year and achieve high growth for at least two out of three years. Does not adjust the allotment of these funds based on performance until the 2004-05 school year. (b) Provides the maximum class size for 2001-02 school year beginning January 1, 2002 to be no more than two students above the allotment ratio for that grade; in subsequent years the maximum class size shall be no more than one student above the allotment ratio in that grade. Allows SBE to allocate additional resources if additional teaching positions are needed. (c) Allows a local board to request a waiver from the State Board in only 2001-02 if it is unable to implement the class-size limitation for any high priority school in that LEA. If SBE grants waiver the additional teacher positions shall be withdrawn and the regular allotment for teacher assistants will be reinstated. Section 29.7 Allocation of Federal Funds for Priority Schools Requires the State Board of Education to make every effort to coordinate the use of State and federal funds to avoid duplication or overlap of services and to ensure that the benefits of smaller class sizes accrue to as many at-risk students as possible.   Part XXXI. UNIVERSITIES Section 31.4 Study Professional Development Programs for Public School Professionals Amends the duties of the State Board to identify State and local needs for professional development for professional public school employees based on priorities for improving student achieve ment and recommend strategies to address these needs. Requires SBE to report its findings and recommendations to the General Assembly and the Board of Governors annually. Specifies that the State Board shall evaluate the reports submitted by the Board of Governors to determine whether the programs for professional development provided by the Center for School Leadership Development address State and local needs identified by SBE. Requires the Board of Governors to submit an annual report to the SBE that uses data to assess and evaluate the effectiveness of the Center for School Leadership Development. Authorizes the Joint Legislative Education Oversight Committee to hire an independent consultant to study and make recommendations regarding professional development for public school professionals and to report these findings and recommendations to the 2002 Session. Section 31.5 Teacher Assistant Scholarship Fund Establishes the Teacher Assistant Scholarship Fund to enable teacher assistants who are pursuing college degrees to become teachers. Charges the Board of Governors, in consultation with the State Board of Education and the State Board of Community Colleges, to develop the criteria for awarding these scholarships. Stipulates that the Board of Governors, SBE, and State Board of Community Colleges shall prepare a written explanation of the scholarship fund and shall provide that information to appropriate counselors in each LEA and shall charge those counselors to inform teacher assistants about the scholarships and encourage them to apply. Part XXII. SALARIES AND EMPLOYEE BENEFITS Section 32.21 Salary-Related Contributions/Employers Sets the employer salary-related contributions rates budgeted for retirement and related benefits at 5% that includes 2.35% for hospital and medical benefits; 0.52% for disability income; and 0.16% for the death benefit. Sets maximum employer contribution for the medical plan at $2,764 for non-Medicare-eligible employees and $2,104 for Medicare-eligible employees in 2001-02. Section 32.25 To Shorten the Amount of Time Retired Teachers Must be Retired Before They Return to Work Amends G.S. 135-3(8)c. to reduce from twelve to six months the amount of time a teacher must be retired before he or she can return to work without negatively impacting his or her retirement benefits. Clarifies law to indicate that this provision applies to an individual who has been retired at least six months and has not been employed in any capacity, except as a substitute teacher or a part-time tutor with a public school for at least six months immediately preceding the effective date of reemployment. This provision expires June 30, 2003.   Section 32.28 Remove the Cap on Sick Leave Creditable to Retirement for Members of the Teachers' and State Employees Retirement System Removes the restriction on the amount of sick leave that can be credited to an employee upon retirement. Deletes the previous maximum of 12 days of credit for each year of membership PART XXXVI. MISCELLANEOUS PROVISIONS Sections 36.1 ­ 36.5 Incorporates the Joint Conference Committee Report on the Continuation, Expansion and Capital Budgets as part of this act. Sets the effective date at July 1, 2001 unless otherwise provided. Bill Summaries   HOUSE BILLS S.L. 2001-97 HB 15, Definition of the Term "Middle School" Amends classification of public schools to include definition of "middle school" as a school that includes all or part of grades 6 through 9 and "union school" as a school including elementary, middle, and high school grades. Clarifies other grade classifications. Specifies that the included classifications are only suggestions and do not prohibit local boards of education from classifying schools in other ways. Effective: July 1, 2001 SL 2001-363 HB 195, Teach NC History in Elementary and Middle School and Enact the Student Citizen Act of 2001 Requires that NC history and geography be taught in two yearlong courses; one in elementary school and one in middle school. Allows instruction to include up to four weeks of instruction relating to the local area in which students reside. Modifies the social studies curriculum to instruct students on participation in the democratic process. Requires high school social studies curriculum to include instruction in civic and citizenship education, also encouraged to include writing elected officials, importance of voting, current events and governmental structure and information on democratic process. Middle school social studies curriculum is encouraged to include tour of local government facilities and students choosing and analyzing a community problem and offering recommendations to local officials. Modifications to curriculum to be completed by December 15, 2001 with implementation in 2002-03 school year. Requires every local board of education to develop and implement character education instruction with input from the local community. Adds the four following responsibilities to be instructed: respect for school personnel, responsibility for school safety, service to others, and good citizenship. Local boards shall develop character education instruction by January 1, 2002 with implementation by 2002-03 school year. If implementation poses an economic hardship to begin in 2002-03, the local board can request an extension of time from SBE. Requires local boards of education to include a reasonable dress code for students in policies governing conduct of students. Adds a new section to public school laws to allow LEAs to display documents and objects of historical significance that have formed and influenced the US legal or governmental system and that exemplify the development of the rule of law. Examples include Magna Carta, Mecklenburg Declaration, Ten Commandments and the Justinian Code. The display containing words associated with a religion shall not be displayed in a fashion that calls attention to it apart from other documents. Requires all such displays to be accompanied by a prominent sign quoting the First Amendment of the United States Constitution. Effective: August 10, 2001 S.L. 2001-118 HB 608, Modify the Health Certificate Requirements for Public School Employees Revises health certificate requirements for public school employees to require any new employee or employee returning after an absence of greater than a year to provide a certificate certifying that he or she does not have any communicable disease, including tuberculosis, that would affect that employee's ability to do his or her job. Authorizes a local board or superintendent to require a physical exam whenever considered necessary. Specifies individuals authorized to supply the superintendent with the certificate of health, including a physician, nurse practitioner or physician's assistant licensed in another state. Effective: May 25, 2001 S.L. 2001-195 HB 620, Superintendent Flexibility in Expunging Suspension or Expulsion Authorizes superintendent or the superintendent's designee to expunge the notice of suspension or expulsion from a student's official record if all the following criteria are met: 1. a request is made by that student's parent or guardian, or by the student, if he or she is over 16 years of age; 2. stipulates that the suspension or expulsion may be expunged if the student graduates from high school or is not expelled or suspended again during the two-year period following the initial infraction; 3. if the superintendent or designee determines that the record is no longer needed to maintain a safe and orderly school; and 4. if he or she determines that the record is no longer needed to best serve the student in question. Effective: June 13, 2001 S.L. 2001-86 HB 979, Issuing Special High School Diplomas to WWII Veterans Amends G.S. 115C-12 to include in the list of powers and duties of the State Board of Education the duty to issue a special high school diploma to any dishonorably discharged veteran of WWII who requests it and has not previously received one. Effective: May 17, 2001 S.L. 2001-17 HB 990, State Board of Education Appointments Confirms the appointment of Michelle Howard-Vital, Wayne McDevitt, and Patricia Willoughby to membership on the State Board of Education for terms to expire March 31, 2009. Effective: June 6, 2001 S.L. 2001-173 HB 1149, Local Boards of Education Employee Sexual Harassment Policies Allows local boards of education to adopt policies addressing the sexual harassment of school employees by students, other school employees or other school board members, including consequences of and procedures for reporting such harassment. Prohibits retaliation against employees who report harassment. Effective: July 1, 2001 S.L. 2001-13 HB 1161, Joint Session to Confirm State Board of Education Appointees Calls for a joint session of the General Assembly to act on a joint resolution confirming the appointments by the Governor of new members of the State Board of Education. Effective: May 21, 2001 S.L. 2001-312 HB 1246, BOG Study Admissions/Youths in IHEs Requires Board of Governors, in consultation with State Board of Education and State Board of Community Colleges, to study measures used by constituent institutions to make admissions, placement, and advanced placement decisions regarding incoming freshmen. Encourages a review of incorporating the State's testing program into such decisions. Requires a report to Education Oversight. Allow students under the age of 16 to enroll in a community college if the student is intellectually gifted based on criteria established by the State Board of Community Colleges and the local board of education agrees. This section expires September 1, 2004. Effective: July 28, 2001 S.L. 2001-129 HB 1285, Initial Teacher Certification and Subject Assessment Requirements Amends G.S. 115C-296(a) to require the State Board of Education to permit an applicant for initial teacher certification to fill the requirement of passing the appropriate specialty area test or subject assessment during the applicant's second year of teaching provided he or she took that test at least once during the first year of teaching. Effective: May 25, 2001 SENATE BILLS   S.L. 2001-26 SB 45, Interference with the Operation of Public School Buses Amends G.S.14-132.2 to include in the list of Class 1 misdemeanors related to public school bus violations, any person who unlawfully and willfully stops, impedes, delays, or detains a public school bus or activity bus. Amends G.S.14-288.4(a) to include in the list of offenses classified as disorderly conduct any violation by a person who disturbs the peace, order, or discipline on any public school bus or activity bus. Effective: December 1, 2001 S.L. 2001-178 SB 71, Alternative Learning Program for Short-Term Suspension Pilot Program Requires the State Board of Education in conjunction with the Department of Juvenile Justice and Delinquency Prevention to establish a pilot program for no more than five LEAs in which participating LEAs would place all students on short-term out-of-school suspension in alternative learning programs. Establishes criteria governing the application process, and sets forth guidelines that participating LEAs must follow when designing their programs. Allows use of existing funds to implement pilot. Requires report on implementation of pilot program to Education Oversight April 15, 2003. Effective: June 7, 2001 S.L. 2001-174 SB 378, Local Superintendent Qualifications Amends G.S. 115C-271(a) to permit local boards of education to hire local superintendents without having direct experience or certification as an educator or principal, so long as they have other leadership, management, and administrative experience otherwise qualifying them for the position. Requires State Board of Education to adopt rules that include minimum credentials, educational prerequisites, and relevant experience. Effective: July 1, 2001 S.L. 2001-260 SB 532, Clarifying Appeals to Local Boards of Education, and Rights of Noncertified Employees to Appeals Amends G.S. 115C-45(c) to clarify which matters may be appealed to a local board of education: 1. discipline of a student; 2. violation of federal or state law, state or local policies including policies on grade retention of students; 3. terms or conditions or employment; and 4. any other decision that by statute provides for appeal. Stipulates that those persons whose grievances are not included in the list of allowable appeals have the right to appeal to the superintendent and thereafter to petition the local board of education for a hearing. Provides that the appeal can then be taken to the superior court of the State on various grounds. Limits noncertified employees' rights of appeal to those decisions concerning that employee's dismissal, demotion, or suspension without pay. Provides noncertified employees with the right to request and receive a written notice concerning reasons for dismissal, demotion, or suspension. Does not alter the employment status of a noncertified employee. Effective: July 1, 2001 S.L. 2001-151 SB 708, Reduce School Paperwork Adds to the list of the State Board of Education's duties the requirement to identify and eliminate unnecessary reports and paperwork required of schools. Requires the State Board to adopt policies to ensure that LEAs are not required to provide information that is already available on the student information management system or within DPI, to provide the same written information more than once during a school year (unless that information has changed), and to complete forms for children with disabilities that are not necessary to ensure compliance with federal IDEA regulations. Effective: July 1, 2001 S.L. 2001-123 SB 735, Change Education Cabinet Membership Adds the President of the North Carolina Independent Colleges and Universities to the Education Cabinet. Effective: May 25, 2001 S.L. 2001-376 SB 778, Criminal History Checks of School Employees Allows local boards of education to perform a criminal history check on applicants for employment in public schools. Effective: August 17, 2001 S.L. 2001-146 SB 803, Encouraging Teacher Education for Military Personnel Commissions the Board of Governors of The University of North Carolina, the State Board of Community Colleges, and the Department of Public Instruction to work cooperatively to expand opportunities for military personnel to take courses towards teacher certification on military bases and at nearby sites, through Internet courses, and through cooperative education programs. Effective: May 31, 2001 S.L. 2001-244 SB 811, Adequate Notice to Parents of Suspended or Expelled Children Requires local school boards to provide written notice to parents of children expelled or suspended for more than ten days. Provides that if a parent's first language is not English, that letter must be provided both in the parent's native language and in English, when appropriate foreign language resources are readily available. Effective: July 1, 2001 S.L. 2001-253 SB 824, State Health Plan Changes Revises the State Employee Health Plan in several ways. Gives the Executive Administrator of State Health Plan authority to increase annually the annual deductible and annual maximum deductible. Increases the plan's annual deductible paid by individuals from $250 to $350 and from $750 to $1,050 per employee and children or employee and family. Increases the plan's out-of-pocket coinsurance expense paid by individuals from $1,000 to $1,500, and increases it to $4,500 per employee and children or employee and family. Raises co-payments for outpatient prescription drugs from $15 to $25 for brands, from $20 to $35 for brands with generic equivalents, and from $25 to $40 for non-formulary drugs (generic drug co-payments are held constant at $10). Increases maximum lifetime benefits from $2 million to $5 million. Increases co-payments for physician office visits from $10 to $15. Increases cost of other services. Effective: July 1, 2001 S.L. 2001-303 SB 836, School Assignment/Child in Pre-Adoptive Home Modifies the law regarding residency requirements for a child who resides in a pre-adoptive home following placement by a county department of social services or a licensed child-placing agency. Effective: July 21, 2001 Appendix Index of Chaptered Bills Budget Bill Page SB 1005 The Appropriations Act of 2001 House Bills Page HB 15 Definitions of the Term "Middle School" HB 195 Teach NC History in Elementary and Middle School and Enact the Student Citizen Act of 2001 HB 608 Modify the Health Certificate Requirements for Public School Employees HB 620 Superintendent Flexibility in Expunging Suspension or Expulsion HB 979 Issuing Special HIgh School Diplomas to WWII HB 1149 Local Boards of Education Appointments HB 1161 Joint Session to Confirm State Board of Education Appointees HB 1246 BOG Study Admissions/Youths in IHEs HB 1285 Initial Teacher Certification and Subject Assessment Requirements   Senate Bills Page SB 45 Interference with the Operation of Public School Buses SB 71 Alternative Learning Program for Short-Term Suspension Pilot Program SB 378 Local Superintendent Qualifications SB 532 Clarifying Appeals to Local Boards of Education SB 708 Reduce School Paperwork SB 735 Change Education Cabinet Membership SB 778 Criminal HIstory Checks of School Employees SB 803 Encouraging Teacher Education for Military Personnel SB 811 Adequate Notice to Parents of Suspended or Expelled Children SB 824 State Health Plan Changes SB 836 School Assignment   List of All Local Bills House HB 278 Tyrrell School Board Elections Session Law 2001- 4 HB 516 Wake County School Construction Session Law 2001-44 HB 699 Camden School Board Elections Session Law 2001-24 HB 804 County School Aquisition Session Law 2001-76 Senate SB 401 Forsyth Stanly County School Bids Session Law 2001-99 SB 645 Wilkes County/School Property Transfer Session Law 2001-58 Note: This publication does not include the text of the local bills. For a copy of any of these bills, log onto the General Assembly website at http://www.ncleg.net and go to Bill Inquiry to access bill texts or call the State Board's Legislative Office at 919/807-3403.