A BILL TO BE ENTITLED
AN ACT to effectively recruit and retain teachers for the north carolina public schools.
The General Assembly of North Carolina enacts:
STUDY TO DEVELOP A COMPENSATION PROGRAM FOR TEACHERS in north carolina
SECTION 1.  It is the goal of the General Assembly to increase teacher salaries over the next four years so as to attract and retain excellent teachers in the public schools; therefore, the Joint Legislative Education Oversight Committee shall develop and recommend to the General Assembly a Compensation Program for Teachers in North Carolina. The purpose of this Program shall be to (i) recruit and retain highly qualified teachers by offering competitive salaries and (ii) provide cost‑of‑living increases, longevity, and benefits necessary to ensure that teacher compensation in North Carolina remains at or above the national average.
It is the intent of the General Assembly that local school administrative units will not use these State‑funded salary increments to supplant local salary supplements.
The Committee shall report the results of this study to the 2004‑2005 regular session of the 2003 General Assembly.

salary increase for beginning teachers
SECTION 2.(a)  It is the goal of the General Assembly to appropriate funds for the 2004‑2005 fiscal year to increase the salaries of teachers on the first four steps of the teacher salary schedule as indicated in the following tables. All other increases in the teacher salary schedules for the 2004‑2005 fiscal year shall be based on the salary schedules as modified in this section.
SECTION 2.(b)  The first four steps of the salary schedule for "A" Teachers shall be as follows:

Years of	"A"	NBPTS
Experience	Teachers	Certification
0	$2,600	N/A
1	$2,650	N/A
2	$2,700	N/A
3	$2,775	$3,108

SECTION 2.(c)  The first four steps of the salary schedule for "M" Teachers shall be as follows:

Years of	"M"	NBPTS
Experience	Teachers	Certification
0	$2,860	N/A
1	$2,915	N/A
2	$2,970	N/A
3	$3,053	$3,419

local initiatives to recruit and retain teachers
SECTION 3.(a)  It is the goal of the General Assembly to appropriate funds for the 2004‑2005 fiscal year for local initiatives to recruit and retain teachers. The State Board of Education shall allocate forty percent (40%) of any such funds to local school administrative units on the basis of projected average daily membership, thirty‑five percent (35%) on the basis of the 2003‑2004 low‑wealth supplemental funding formula, and twenty‑five percent (25%) on the basis of growth in average daily membership over the last four school years.  Local school administrative units shall use these funds for one or more of the following initiatives to recruit and retain teachers:
(1)	Recruiting bonuses;
(2)	Interest‑free loans to teachers;
(3)	Stipends for teacher training;
(4)	Teacher as leader programs;
(5)	Annual bonuses for teachers certified in the fields of mathematics, science, special education, or other fields in which there is a shortage of qualified teachers;
(6)	Annual bonuses for teachers at schools with high percentages of low‑performing students; and
(7)	Other local initiatives to recruit and retain teachers.
		Local boards of education shall report to the State Board of Education on local initiatives implemented with these funds and on the effectiveness of those local initiatives in recruiting and retaining teachers.
		The State Board of Education shall report to the Joint Legislative Education Oversight Committee on the effectiveness of the different local initiatives by December 15, 2005.
SECTION 3.(b)  It is the goal of the General Assembly to fund the items set out in this section with recurring funds, beginning with the 2004‑2005 fiscal year.

LICENSURE OF TEACHERS LICENSED IN OTHER STATES
SECTION 4.  Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C-296.3. Certification of highly qualified teachers from other states.
Notwithstanding any other provision of law, a teacher from another state shall be granted North Carolina certification under the following conditions:
(1)	New hires to the profession from other states. – A teacher from another state who (i) has less than three years of experience as a full‑time classroom teacher, (ii) is fully certified and highly qualified, as provided in the No Child Left Behind Act of 2001, in that other state; and (iii) is employed as a teacher by a local school administrative unit in North Carolina, is deemed to have satisfied the academic and professional preparation required to receive initial certification in North Carolina. The initial certification shall be granted for one year or for the period of time necessary for the teacher to acquire three years of full-time teaching experience in North Carolina and the other state combined, whichever is longer.
Once the teacher has three years of experience as a full-time teacher with at least one full year in a local school administrative unit in North Carolina, the teacher shall receive continuing certification unless the employing local school administrative unit recommends that the teacher not be granted continuing certification. The teacher shall be subject to the same requirements for continuing certification and certificate renewal as other teachers in North Carolina.
The teacher shall not be required to take and pass a standard examination to demonstrate adequate academic and professional preparation for certification, except as otherwise provided by the No Child Left Behind Act of 2001.
(2)	New hires with at least three years of experience from other states. – A teacher from another state who (i) has three or more years of experience as a full-time teacher, (ii) is fully certified and highly qualified as provided in the No Child Left Behind Act of 2001 in that other state, and (iii) is employed as a teacher by a local school administrative unit in North Carolina is deemed to have satisfied the academic and professional preparation required to receive continuing certification for one year in North Carolina. 
If at the end of one year of employment, the employing local board of education recommends to the State Board of Education that the teacher's certification be renewed, the teacher shall be eligible to receive continuing certification. The teacher shall be subject to the same requirements for continuing certification and certificate renewal as other teachers in North Carolina.
The teacher shall not be required to take and pass a standard examination to demonstrate that preparation, except as otherwise provided by the No Child Left Behind Act of 2001."

INITIATIVES TO INCREASE THE NUMBER OF STUDENTS IN TEACHER TRAINING PROGRAMS
SECTION 5.  G.S. 115C‑296(b) reads as rewritten:
"(b)	It is the policy of the State of North Carolina to maintain the highest quality teacher education programs and school administrator programs in order to enhance the competence of professional personnel certified in North Carolina. To the end that teacher preparation programs are upgraded to reflect a more rigorous course of study, the State Board of Education, as lead agency in coordination and cooperation with the University Board of Governors, the Board of Community Colleges and such other public and private agencies as are necessary, shall continue to refine the several certification requirements, standards for approval of institutions of teacher education, standards for institution‑based innovative and experimental programs, standards for implementing consortium‑based teacher education, and standards for improved efficiencies in the administration of the approved programs. The certification program shall provide for initial certification after completion of preservice training, continuing certification after three years of teaching experience, and certificate renewal every five years thereafter, until the retirement of the teacher. The last certificate renewal received prior to retirement shall remain in effect for five years after retirement.
The State Board of Education shall modify the standards for approval of institutions of teacher education to encourage the institutions to (i) increase the number of students in teacher education programs each year, (ii) ensure that all students in the program take the standard examination required for certification prior to graduation, and (iii) increase the number of students passing the standard examination requirement prior to graduation.
The State Board of Education, as lead agency in coordination with the Board of Governors of The University of North Carolina and any other public and private agencies as necessary, shall continue to raise standards for entry into teacher education programs.
The State Board of Education, in consultation with the Board of Governors of The University of North Carolina, shall evaluate and develop enhanced requirements for continuing certification. The new requirements shall reflect more rigorous standards for continuing certification and to the extent possible shall be aligned with quality professional development programs that reflect State priorities for improving student achievement.
The State Board of Education, in consultation with local boards of education and the Board of Governors of The University of North Carolina, shall reevaluate and enhance the requirements for renewal of teacher certificates. The State Board shall consider modifications in the certificate renewal achievement and to make it a mechanism for teachers to renew continually their knowledge and professional skills. The State Board shall adopt new standards for the renewal of teacher certificates by May 15, 1998.
The standards for approval of institutions of teacher education shall require that teacher education programs for students who do not major in special education include demonstrated competencies in the identification and education of children with learning disabilities. The State Board of Education shall incorporate the criteria developed in accordance with G.S. 116‑74.21 for assessing proposals under the School Administrator Training Program into its school administrator program approval standards.
All North Carolina institutions of higher education that offer teacher education programs, masters degree programs in education, or masters degree programs in school administration shall provide performance reports to the State Board of Education. The performance reports shall follow a common format, shall be submitted according to a plan developed by the State Board, and shall include the information required under the plan developed by the State Board."

TAX CREDIT FOR TEACHERS
SECTION 6.(a)  Part 2 of Article 4 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105-151.29.  Credit for public school teachers.
(a)	Credit. – An individual who is employed as a public school teacher for at least 16 weeks during the taxable year is allowed as a credit against the tax imposed by this Part an amount equal to the following:
(1)	Five hundred dollars ($500.00) for an individual who has, as of the last day of the taxable year, completed at least one but less than five years of service as a public school teacher.
(2)	One thousand dollars ($1,000) for an individual who has, as of the last day of the taxable year, completed at least five but less than 10 years of service as a public school teacher.
(b)	Credit Limitation. – This credit may not exceed the amount of tax imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax payment made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for the succeeding five years.
(c)	Definitions. – The following definitions apply in this section:
(1)	Public school. – Any elementary or secondary school located within the borders of this State that is operated by a local school administrative unit, any charter school approved by the State Board of Education and operated in the State, the State, a branch of the federal government, or a federally recognized Indian tribe.
(2)	Public school teacher. – A full‑time permanent employee of a public school who spends at least fifty percent (50%) of the school day providing classroom instruction."
SECTION 6.(b)  G.S. 105‑160.3(b) is amended by adding a new subdivision to read:
"(8)	G.S. 105-151.29. Credit for public school teachers."
SECTION 6.(c)  This section becomes available only if the General Assembly states in the General Fund Availability Statement set out in the Current Operations and Capital Improvements Appropriations Act of 2004 that funds are available to implement this section.
SECTION 6.(d)  This section is effective for taxable years beginning on or after January 1, 2004.  This section is repealed effective for taxable years beginning on or after January 1, 2014.
SECTION 6.(e)  This section does not affect the rights or liabilities of the State, a taxpayer, or another person arising under a statute amended or repealed by this section before the effective date of its amendment or repeal; nor does it affect the right to any refund or credit of a tax that accrued under the amended or repealed statute before the effective date of its amendment or repeal.

TUITION SCHOLARSHIP LOANS FOR NONRESIDENT STUDENTS WHO AGREE TO TEACH IN NORTH CAROLINA
SECTION 7.  The Board of Governors of The University of North Carolina may allow the constituent institutions that receive funds for focused enrollment growth to allocate up to one hundred seventy‑eight thousand three hundred eighty dollars ($178,380) each of those funds to provide for a maximum of 20 Prospective Teacher Scholars at each such institution.  These funds may be used to recruit new nonresident students to enter into agreements to:  (i) pursue a full‑time course of study that will lead to teacher certification in North Carolina and (ii) teach in a North Carolina public school or a school operated by the United States government in North Carolina for one year for each year that they receive this benefit.  For each new Prospective Teacher Scholarship an institution provides to a nonresident student with these funds, the institution shall ensure that there is space for an additional North Carolina resident to enter the teacher preparation program. The Board of Governors shall establish guidelines and regulations for this program, including methodology for determining its success in increasing the supply of qualified teachers for North Carolina public schools. The Board shall report its guidelines and regulations to guide these pilot programs to the Joint Legislative Education Oversight Committee by November 15, 2003. The Board shall report annually to the Committee on the progress of the pilot programs and their costs.
long‑range plan for teacher recruitment and retention
SECTION 8.  The Education Cabinet shall develop a long‑range plan for the recruitment and retention of teachers.  The Education Cabinet shall consult with public and private agencies, as necessary, in the development of this plan.  The Education Cabinet shall report to the Joint Legislative Education Oversight Committee prior to December 1, 2004, on the plan it develops.

alignment of the lateral entry program with the requirements of the no child left behind act of 2001
SECTION 9.(a)  G.S. 115C‑296(c) reads as rewritten:
"(c)	It is the policy of the State of North Carolina to encourage lateral entry into the profession of teaching by qualified individuals who hold a postsecondary degree that is at least a bachelors degree. To this end, before the 2004-2005 school year begins, the State Board of Education shall review and revise the curriculum requirements for lateral entry candidates to receive certification. 
Qualified first-year lateral entry candidates who are required by federal law to obtain certification before contracting to teach for a fourth year may be granted a provisional teaching certificate for no more than three years. Other qualified lateral entry candidates may be granted a provisional teaching certificate for no more than five years and shall be required to obtain certification before contracting for a sixth year of service with any local administrative unit in this State. The State Board of Education shall ensure that the teacher preparation programs in the State are providing training to lateral entry candidates, provide that training in a uniform and consistent manner that enables lateral entry candidates to obtain certification in accordance with the requirements of the No Child Left Behind Act of 2001 while working as full-time teachers.
"
SECTION 9.(b)  The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to July 1, 2004, on revisions the Board made to the curriculum requirements for lateral entry candidates pursuant to G.S. 115C‑296(c), as rewritten by subsection (a) of this section.

EFFECTIVE DATE
SECTION 10.  This act is effective when it becomes law.