GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1739

Short Title:  Retirement/Charter Schs.	(Public)

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Sponsors: Representatives Daughtry; Cansler, Davis, Sexton, Sherrill, and Shubert.

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Referred to:  Education, if favorable, Pensions and Retirement.

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June 1, 1998

A BILL TO BE ENTITLED
AN ACT TO ALLOW CHARTER SCHOOLS TO ELECT TO PARTICIPATE IN THE NORTH CAROLINA TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, IN THE NORTH CAROLINA TEACHERS' AND STATE EMPLOYEES' COMPREHENSIVE MAJOR MEDICAL  PLAN, OR BOTH, TO GIVE CHARTER SCHOOLS THE SAME MOTOR FUEL TAX EXEMPTION AS PUBLIC SCHOOLS, TO ALLOW CHARTER SCHOOLS TO OBTAIN THE SAME PERMANENT LICENSE PLATES AS PUBLIC SCHOOLS, TO MAKE CHANGES IN THE CHARTER SCHOOL LAW, AND TO REQUIRE RULES GOVERNING CHARTER SCHOOLS TO BE SUBJECT TO REVIEW.
The General Assembly of North Carolina enacts:
Section 1.   G.S. 115C-238.29B(b) is amended by adding the following new subdivision to read:
"(15)	A statement as to whether the school will elect to join the North Carolina Teachers' and State Employees' Retirement System under G.S. 138-5.3, the Teachers' and State Employees' Comprehensive Major Medical Plan under G.S. 40.3A, or both."
Section 2.  G.S. 115C-238.29F(e)(4) reads as rewritten:
"(4)	The employees of the charter school shall be deemed employees of the local school administrative unit for purposes of providing certain State-funded employee benefits, including membership in the Teachers' and State Employees' Retirement System and the Teachers' and State Employees' Comprehensive Major Medical Plan. The State Board of Education provides funds to charter schools, approves the original members of the boards of directors of the charter schools, has the authority to grant, supervise, and revoke charters, and demands full accountability from charter schools for school finances and student performance. Accordingly, it is the determination of the General Assembly that charter schools are public schools and that the employees of charter schools are public school employees.  Employees of a charter school whose board of directors elects to join under G.S. 138-5.3 are ‘teachers' for the purpose of membership in the North Carolina Teachers' and State Employees' Retirement System.  Employees of a charter school whose board of directors elects to join under G.S. 135-40.3A are ‘teachers' for the purpose of membership in the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan. In no event shall anything contained in this Part require the North Carolina Teachers' and State Employees' Retirement System to accept employees of a private employer as members or participants of the System."
Section 3.  Article 1 of Chapter 135 of the General Statutes is amended by adding the following new section:
"§ 135-5.3.  Optional participation for charter schools.
(a)	The board of directors of each charter school shall elect to join the Retirement System in accordance with the laws applicable to that System. This election shall be in writing, shall be made no later than September 1, 1998, and shall be filed with the Retirement System and with the State Board of Education.  This election is effective as of the date the board makes the election for each charter school employee who is employed on or before the date the board makes the election.  The election is effective as of the date of entry into eligible service for each charter school employee who is employed after the date the board makes the election.  This subsection applies only to charter schools that received State Board of Education approval under G.S. 115C-238.29D in 1997 or 1998.
(b)	No later than 30 days after both parties have signed the written charter under G.S. 115C-238.29E, the board of directors of a charter school shall elect to join the Retirement System in accordance with the laws applicable to that System.  This election shall be in writing and filed with the Retirement System and with the State Board of Education and is effective for each charter school employee as of the date of entry into eligible service.  This subsection applies to charter schools that receive State Board of Education approval under G.S. 115C-238.29D after 1998.
(c)	A board's election to join the Retirement System under this section is irrevocable and shall require all employees of the charter school to participate.
(d)	No retirement benefit, death benefit, or other benefit under the Retirement System shall be paid by the State of North Carolina or the Board of Trustees of the Teachers' and State Employees' Retirement System with respect to any employee of a charter school whose board of directors does not elect to join the Retirement System under this section or with respect to any beneficiary of that employee.
(e)	The board of directors of each charter school shall notify each of its employees as to whether the board elected to join the Retirement System under this section.  This notification shall be in writing and shall be provided within 30 days of the board's election or at the time an initial offer for employment is made, whichever occurs last.  If the board did not elect to join the Retirement System, the notice shall include a statement that the employee shall have no legal recourse against the board or the State for any possible credit or reimbursement under the Retirement System.  The employee shall provide written acknowledgment of the employee's receipt of the notification under this subsection."
Section 4.  G.S. 135-4 is amended by adding the following new subsection to read:
"( bb)	Credit for Employment in Charter School. – Notwithstanding any other provision of this Chapter, any member in service with five or more years of credited membership service may purchase creditable service for periods of employment in a charter school whose board of directors did not elect to participate in the Retirement System under G.S. 135-5.3.  The member shall purchase this service by making a lump-sum payment together with interest and an administrative fee for that service, to the Retirement System of an amount equal to what the member would have contributed had the board of directors of the charter school elected under G.S. 135-5.3 to participate in the Retirement System."
Section 5.  G.S. 135-40.1(6) reads as rewritten:
"(6)	Employing Unit. – A North Carolina School System; Community College; State Department, Agency or Institution; Administrative Office of the Courts; or Association or Examining Board whose employees are eligible for membership in a State-Supported Retirement System. An employing unit also shall mean a charter school in accordance with Part 6A of Chapter 115C of the General Statutes whose board of directors elects to join the Plan under G.S. 135-40.3A."
Section 6.  Part 3 of Article 3 of Chapter 135 is amended by adding the following new section:
"§ 135-40.3A.  Optional participation for charter schools.
(a)	The board of directors of each charter school shall elect to join the Plan in accordance with the laws applicable to that Plan. This election shall be in writing, shall be made no later than September 1, 1998, and shall be filed with the Executive Administrator and Board of Trustees and with the State Board of Education.  This election is effective as of the date the board makes the election for each charter school employee who is employed on or before the date the board makes the election.  The election is effective as of the date of entry into eligible service for each charter school employee who is employed after the date the board makes the election.  This subsection applies only to charter schools that received State Board of Education approval under G.S. 115C-238.29D in 1997 or 1998.
(b)	No later than 30 days after both parties have signed the written charter under G.S. 115C-238.29E, the board of directors of a charter school shall elect to join the Plan in accordance with the laws applicable to that Plan.  This election shall be in writing and filed with the Executive Administrator and Board of Trustees and with the State Board of Education and is effective for each charter school employee as of the date of entry into eligible service.  This subsection applies to charter schools that receive State Board of Education approval under G.S. 115C-238.29D after 1998.
(c)	A board's election to join the Plan under this section is irrevocable and shall require all employees of the charter school to participate.
(d)	If a charter school's board of directors does not elect to join the Plan under this section, that school's employees and the dependents of those employees are not eligible for any benefits under the Plan.
(e)	The board of directors of each charter school shall notify each of its employees as to whether the board elected to join the Plan under this section.  This notification shall be in writing and shall be provided within 30 days of the board's election or at the time an initial offer for employment is made, whichever occurs last.  If the board did not elect to join the Plan, the notice shall include a statement that the employee shall have no legal recourse against the board or the State for any possible benefit under the Plan.  The employee shall provide written acknowledgment of the employee's receipt of the notification under this subsection."
Section 7.  G.S. 105-228.90(b) reads as rewritten:
"(b)	Definitions. – The following definitions apply in this Article:
(1)	Reserved.
(2)	Charter school board. – A nonprofit corporation that has a charter under G.S. 115D-238.29D to operate a charter school.
(3)	City. – A city as defined by G.S. 160A-1(2). The term also includes an urban service district defined by the governing board of a consolidated city-county, as defined by G.S. 160B-2(1).
(4)	Code. – The Internal Revenue Code as enacted as of January 1, 1997, including any provisions enacted as of that date which become effective either before or after that date.
(5)	County. – Any one of the counties listed in G.S. 153A-10. The term also includes a consolidated city-county as defined by G.S. 160B-2(1).
(6)	Reserved. 
(7)	Electronic Funds Transfer. – A transfer of funds initiated by using an electronic terminal, a telephone, a computer, or magnetic tape to instruct or authorize a financial institution or its agent to credit or debit an account.
(8)	Reserved.
(9)	Person. – An individual, a fiduciary, a firm, an association, a partnership, a limited liability company, a corporation, a unit of government, or another group acting as a unit. The term includes an officer or employee of a corporation, a member, a manager, or an employee of a limited liability company, and a member or employee of a partnership who, as officer, employee, member, or manager, is under a duty to perform an act in meeting the requirements of Subchapter I, V, or VIII of this Chapter or of Article 3 of Chapter 119 of the General Statutes.
(10)	Secretary. – The Secretary of Revenue.
(11)	Tax. – A tax levied under Subchapter I, V, or VIII of this Chapter or an inspection tax levied under Article 3 of Chapter 119 of the General Statutes. Unless the context clearly requires otherwise, the terms "tax”and "additional tax”include penalties and interest as well as the principal amount.
(12)	Taxpayer. – A person subject to the tax or reporting requirements of Subchapter I, V, or VIII of this Chapter or of Article 3 of Chapter 119 of the General Statutes."
Section 8.  G.S. 105-449.88 reads as rewritten:
"§ 105-449.88.  Exemptions from the excise tax.
The excise tax on motor fuel does not apply to the following:
(1)	Motor fuel removed, by transport truck or another means of transfer outside the terminal transfer system, from a terminal for export, if the supplier of the motor fuel collects tax on it at the rate of the motor fuel's destination state.
(2)	Motor fuel sold to the federal government.
(3)	Motor fuel sold to the State for its use.
(4)	Motor fuel sold to a local board of education for use in the public school system. 
(5)	Motor fuel sold to a charter school board for use for charter school purposes."
Section 9.  G.S. 20-84 reads as rewritten:
"§ 20-84.  Vehicles owned by State, municipalities or orphanages, etc.; certain vehicles operated by the local chapters of American National Red Cross.
The Division upon proper proof being filed with it that any motor vehicle for which registration is herein required is owned by the State or any department thereof, or by any county, township, city or town, or by any board of education, or by any nonprofit corporation that has a charter under G.S. 115C-238.29D to operate a charter school, or by any orphanage or civil air patrol, or incorporated emergency rescue squad, or incorporated REACT ("Radio Emergency Association of Citizen Teams") Team, or for any motor vehicle involved exclusively in the support of a disaster relief effort, shall collect six dollars ($6.00) for the registration of such motor vehicles, but shall not collect any fee for application for certificate of title in the name of the State or any department thereof, or by any county, township, city or town, or by any board of education or orphanage: Provided, that the term "owned" shall be construed to mean that such motor vehicle is the actual property of the State or some department thereof or of the county, township, city or town, or of the board of education, and no motor vehicle which is the property of any officer or employee of any department named herein shall be construed as being "owned" by such department. Provided, that the above exemptions from registration fees shall also apply to any church-owned bus used exclusively for transporting children and parents to Sunday school and church services and for no other purpose.
In lieu of the annual six dollars ($6.00) registration provided for in this section, the Division may for the license year 1950 and thereafter provide for a permanent registration of the vehicles described in this section and issue permanent registration plates for such vehicles. The permanent registration plates issued pursuant to this paragraph shall be of a distinctive color and shall bear thereon the word "permanent." Such plates may be transferred as provided in G.S. 20-78 to a replacement vehicle of the same classification. For the permanent registration and issuance of permanent registration plates provided for in this paragraph, the Division shall collect a fee of six dollars ($6.00) for each vehicle so registered and licensed.
The provisions of this section are hereby made applicable to vehicles owned by a rural fire department, agency or association.
The Division of Motor Vehicles shall issue to the North Carolina Tuberculosis Association, Incorporated, or any local chapter or association of said corporation, for a fee of six dollars ($6.00) for each plate a permanent registration plate which need not be thereafter renewed for each motor vehicle in the form of a mobile X-ray unit which is owned by said North Carolina Tuberculosis Association, Incorporated, or any local chapter or local association thereof and operated exclusively in this State for the purpose of diagnosis, treatment and discovery of tuberculosis. The initial six dollars ($6.00) fee required by this section and for this purpose shall be in full payment of the permanent registration plates issued for such vehicle operated as a mobile X-ray unit, and such plates need not thereafter be renewed, and such plates may be transferred as provided in G.S. 20-78 to replacement vehicles to be used for the purposes above described and for which the plates were originally issued.
The Division of Motor Vehicles shall issue to the American National Red Cross, upon application of any local chapter thereof and payment of a fee of six dollars ($6.00) for each plate, a permanent registration plate, which need not be thereafter renewed, for all disaster vans, bloodmobiles, handivans, and such sedans and station wagons as are used for emergency or disaster work, and operated by a local chapter in this State in the business of the American National Red Cross. Such plates may be transferred as provided in G.S. 20-78 to a replacement vehicle to be used for the purposes above described and for which the plates were originally issued. In the event of transfer of ownership to any other person, firm or corporation, or transfer or reassignment of any vehicle bearing such registration plate to any chapter or association of the American National Red Cross in any other state, territory or country, the registration plate assigned to such vehicle shall be surrendered to the Division of Motor Vehicles.
In lieu of all other registration requirements, the Commissioner shall each year assign to the State Highway Patrol, upon payment of six dollars ($6.00) per registration plate, a sufficient number of regular registration plates of the same letter prefix and in numerical sequence beginning with number 100 to meet the requirements of the State Highway Patrol for use on Division vehicles assigned to the State Highway Patrol. The commander of the Patrol shall, when such plates are assigned, issue to each member of the State Highway Patrol a registration plate for use upon the Division vehicle assigned to him pursuant to G.S. 20-190 and assign a registration plate to each Division service vehicle operated by the Patrol. An index of such assignments of registration plates shall be kept at each State Highway Patrol radio station and a copy thereof shall be furnished to the registration division of the Division. Information as to the individual assignments of such registration plates shall be made available to the public upon request to the same extent and in the same manner as regular registration information. The commander, when necessary, may reassign registration plates provided that such reassignment shall be made to appear upon the index required herein within 20 days after such reassignment.
The Division of Motor Vehicles shall, upon appropriate certification of financial responsibility, issue to sheltered workshops recognized or approved by the Division of Vocational Rehabilitation Services and to public and nonprofit agencies or organizations which provide transportation for or operate programs subject to and approved in accordance with standards adopted by the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services of the Department of Health and Human Services upon application and payment of a fee of six dollars ($6.00) for each plate, a permanent registration plate for vehicles registered to and operated by such agencies. The initial six dollars ($6.00) fee required by this section and for this purpose shall be in full payment of the permanent registration plate issued for such vehicle operated by a sheltered workshop and such plates need not thereafter be renewed, and such plates may be transferred as provided in G.S. 20-78 to a replacement vehicle to be used by the sheltered workshop designated on the registration card.
On and after January 1, 1972, permanent registration plates used on all vehicles owned by the State of North Carolina or a department thereof shall be of a distinctive color and design which shall be readily distinguishable from all other permanent registration plates issued pursuant to this section or G.S. 20-84.1. For the purpose of carrying out the intent of this paragraph, all vehicles owned by the State of North Carolina or a department thereof in operation as of October 1, 1971, and bearing a permanent registration shall be reregistered during the months of October, November and December, 1971, and upon reregistration, registration plates issued for such vehicles shall be of a distinctive color and design as provided for hereinabove."
Section 10.  G.S. 115C-238.29B(d) is repealed.
Section 11. G.S. 115C-238.29D(b) is repealed.
Section 12.  G.S. 115C-238.29F(b) reads as rewritten:
"(b)	School Nonsectarian. – A charter school shall be nonsectarian in its programs, admission policies, employment practices, and all other operations and shall not charge tuition, application fees, or admission fees. A charter school shall not be affiliated with a nonpublic sectarian school or a religious institution."
Section 13.  G.S. 115C-238.29G(c) reads as rewritten:
"(c)	The State Board and the charter school are encouraged to make a good-faith attempt to resolve the differences that may arise between them. Furthermore, the local board of the local school administrative unit in which the charter school is located and the charter school are encouraged to make a good-faith attempt to resolve any differences that may arise between them.  The parties in dispute may agree to jointly select a mediator. The mediator shall act as a neutral facilitator of disclosures of factual information, statements of positions and contentions, and efforts to negotiate an agreement settling the differences. The mediator shall, at the request of either party, commence a mediation immediately or within a reasonable period of time. The mediation shall be held in accordance with rules and standards of conduct adopted under Chapter 7A of the General Statutes governing mediated settlement conferences but modified as appropriate and suitable to the resolution of the particular issues in disagreement.
Notwithstanding Article 33C of Chapter 143 of the General Statutes, the mediation proceedings shall be conducted in private. Evidence of statements made and conduct occurring in a mediation are not subject to discovery and are inadmissible in any court action. However, no evidence otherwise discoverable is inadmissible merely because it is presented or discussed in a mediation. The mediator shall not be compelled to testify or produce evidence concerning statements made and conduct occurring in a mediation in any civil proceeding for any purpose, except disciplinary hearings before the State Bar or any agency established to enforce standards of conduct for mediators. The mediator may determine that an impasse exists and discontinue the mediation at any time. The mediator shall not make any recommendations or public statement of findings or conclusions. The parties in dispute shall share equally the mediator's compensation and expenses. The mediator's compensation shall be determined according to rules adopted under Chapter 7A of the General Statutes."
Section 14.  G.S. 115C-238.29H(b) reads as rewritten:
"(b)	If a student attends a charter school, the board of county commissioners of the county in which the child resides shall allocate to the charter school an amount equal to the per pupil local current expense appropriation to the local school administrative unit in which the child resides for the fiscal year.  The per pupil local current expense appropriation shall be calculated by dividing the total county appropriation to the local school administrative unit's local current expense fund, including appropriations funded by supplemental taxes, by the unit's average daily membership for the budget year to be determined by and certified to the unit and the board of county commissioners by the State Board."
Section 15.  G.S. 115C-234.29H is amended by adding the following new subsection:
"( c)	The board of county commissioners of the county in which the charter school is located may allocate to the charter school funds that may be used for capital outlay purposes."
Section 16.  G.S. 115C-452 reads as rewritten:
"§ 115C-452.  Fines and forfeitures.
The clear proceeds of all penalties and forfeitures and of all fines collected in the General Court of Justice in each county shall be remitted by the clerk of the superior court to the county finance officer, who shall forthwith determine what portion of the total is due to each local school administrative unit and to each charter school in the county and remit the appropriate portion of the amount to the finance officer of each local school administrative unit and each charter school. Fines and forfeitures shall be apportioned according to the projected average daily membership of each local school administrative unit and each charter school as determined by and certified to the local school administrative units, the charter schools, and the board of county commissioners by the State Board of Education pursuant to G.S. 115C-430 or G.S. 115C-238.29H(b)."
Section 17.  G.S. 115C-457.3 reads as rewritten:
"§ 115C-457.3.  Transfer of funds to the State School Technology Fund.
The Office of State Budget and Management shall transfer funds accruing to the Civil Penalty and Forfeiture Fund to the State School Technology Fund. These funds shall be allocated to local school administrative units and to charter schools on the basis of average daily membership.  Notwithstanding any other law, the funds allocated to charter schools under this section shall be used for school technology; however, in accordance with G.S. 115C-238.29E(f), the charter school is not required to develop or submit a school technology plan under Part 3A of Article 8 of this Chapter."
Section 18.  (a) G.S. 115C-238.29E(c) reads as rewritten:
"(c)	The State Board shall issue the written charter no later than 30 days after the date on which the State Board grants final approval for the charter.  The written charter shall incorporate the information provided in the application, as modified during the charter approval process, and any terms and conditions applicable to all charter schools under the rules of the State Board.  The charter school is not required to agree to any additional terms, whether requested by the State Board, the local board where the charter school is located, or the entity to which the charter school is accountable.  No additional terms may be imposed on the charter school as a condition for receipt of local funds.  The charter school shall operate under the written charter signed by the entity to which it is accountable and the applicant."
(b)	G.S. 115C-238.29E(f) reads as rewritten:
"(f)	Except as provided in this Part and pursuant to the provisions of its charter, a charter school is exempt from statutes and rules applicable to a local board of education or local school administrative unit.  The State Board shall not adopt any rules, policies, procedures, requirements, standards, terms, conditions, or regulations governing charter schools unless they are authorized specifically under this Part, they are applicable uniformly to all charter schools, and the Board proceeds under Chapter 150B of the General Statutes.  Only those rules, policies, procedures, requirements, standards, terms, conditions, and regulations that are adopted by the Board shall apply to charter schools and may be included in the written charter and amendments to that charter.  The Board may adopt guidelines to assist charter schools.  These guidelines are not binding on charter schools and shall not be included in any written charter unless the charter school agrees to the inclusion."
(c)	G.S. 150B-2(8a) reads as rewritten:
"(8a)	‘Rule' means any agency regulation, standard, or statement of general applicability that implements or interprets an enactment of the General Assembly or Congress or a regulation adopted by a federal agency or that describes the procedure or practice requirements of an agency. The term includes the establishment of a fee and the amendment or repeal of a prior rule.  The term also includes any State Board of Education or Department of Public Instruction rule, policy, procedure, requirement, standard, term, condition, or regulation that is authorized specifically under Part 6A of Article 16 of Chapter 115C of the General Statutes. The term does not include the following:
a.	Statements concerning only the internal management of an agency or group of agencies within the same principal office or department enumerated in G.S. 143A-11 or 143B-6, including policies and procedures manuals, if the statement does not directly or substantially affect the procedural or substantive rights or duties of a person not employed by the agency or group of agencies.
b.	Budgets and budget policies and procedures issued by the Director of the Budget, by the head of a department, as defined by G.S. 143A-2 or G.S. 143B-3, by an occupational licensing board, as defined by G.S. 93B-1, or by the State Board of Elections.
c.	Nonbinding interpretative statements within the delegated authority of an agency that merely define, interpret, or explain the meaning of a statute or rule.
d.	A form, the contents or substantive requirements of which are prescribed by rule or statute.
e.	Statements of agency policy made in the context of another proceeding, including:
1.	Declaratory rulings under G.S. 150B-4.
2.	Orders of establishing or fixing rates or tariffs.
f.	Requirements, communicated to the public by the use of signs or symbols, concerning the use of public roads, bridges, ferries, buildings, or facilities.
g.	Statements that set forth criteria or guidelines to be used by the staff of an agency in performing audits, investigations, or inspections; in settling financial disputes or negotiating financial arrangements; or in the defense, prosecution, or settlement of cases.
h.	Scientific, architectural, or engineering standards, forms, or procedures, including design criteria and construction standards used to construct or maintain highways, bridges, or ferries.
i.	Job classification standards, job qualifications, and salaries established for positions under the jurisdiction of the State Personnel Commission.
j.	Establishment of the interest rate that applies to tax assessments under G.S. 105-241.1 and the variable component of the excise tax on motor fuel under G.S. 105-449.80."
(d)	Article 2A of Chapter 150B of the General Statutes is amended by adding the following new Part:
"Part 6.  Rules Affecting Charter Schools.
"§ 150B-21.30.  Procedures applicable to rules affecting charter schools.
(a)	G.S. 150B-21.2(a)(1) shall not apply to proposed rules adopted by the State Board of Education if the proposed rules are authorized specifically under Part 6A of Article 16 of Chapter 115C of the General Statutes.
(b)	Notwithstanding G.S. 150B-21.3(b), a permanent rule that is adopted by the State Board of Education, is approved by the Rules Review Commission, and is authorized specifically under Part 6A of Article 16 of Chapter 115C of the General Statutes, becomes effective five business days after the Commission delivers the rule to the Codifier of Rules, unless the rule specifies a later effective date.  If the State Board of Education specifies a later effective date, the rule becomes effective upon that date.  A permanent rule that is adopted by the State Board of Education to implement Part 6A of Article 16 of Chapter 115C of the General Statutes, but is not approved by the Rules Review Commission, shall not become effective.
(c)	G.S. 150B-21.4(b1) shall not apply to permanent rules the State Board of Education proposes to adopt if those rules are authorized specifically under Part 6A of Article 16 of Chapter 115C of the General Statutes.
(d)	The rule proposed by the State Board of Education may create, amend, or repeal a rule.  The State Board of Education shall indicate in the notice of proposed text that the rule is authorized specifically under Part 6A of Article 16 of Chapter 115C of the General Statutes and that the State Board of Education is proceeding under that authority.
"§ 150B-21.31.  Procedures applicable to charters.
The State Board of Education shall submit to the Commission the standard written charter agreement that the State Board of Education approved and issued under Part 6A of Article 16 of Chapter 115C of the General Statutes to charter schools that received State Board approval under G.S. 115C-238.29D in 1997 or 1998.  The State Board of Education also shall submit to the Commission any modifications to that written charter agreement that the State Board approves after July 1, 1998, for issuance to charter schools approved in subsequent years.  The Commission shall review each portion of the charter and each modification to that charter as if it is a rule and shall follow the procedure established in Part 3 of this Article.   The Commission shall determine whether each portion or modification is authorized specifically under Part 6A of Article 16 of Chapter 115C of the General Statutes.  The Commission may approve only portions and modifications of the charter that are so authorized.  All approved portions and modifications of the charter are binding on the charter school.  Each portion or modification of the charter that is not approved is void and shall not apply to any charter school unless the charter school's board of directors agrees to its applicability.  The board of directors is not required to agree to any portion or modification of the charter that the Commission does not approve. This section shall not apply to information in a charter school's application, as modified during the approval process, that is incorporated in each charter school's charter agreement."
Section 19.  (a) The State Board of Education, in collaboration with the Charter School Professional Association, shall evaluate the Uniform Education Reporting System to determine whether this is the best way for charter schools to report information to the State Board or whether there is a mutually functional alternative that could be implemented.  The State Board shall report the results of this evaluation and its recommendations, including any proposed legislative changes, to the Joint Legislative Commission on Governmental Operations by December 1, 1998.
(b)	If, at any time, a majority of charter schools present to the State Board of Education an alternative reporting system that is the functional equivalent of the Uniform Education Reporting System and the alternative system has been benchmarked, the State Board shall consider the adoption of that system for charter schools.
Section 20.  This act becomes effective July 1, 1998.