A BILL TO BE ENTITLED
AN ACT directing local boards of education to provide vouchers to students not permitted to attend neighborhood schools and to establish a merit pay system for teachers, instructional support personnel, and principals.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 115C‑366 is amended by adding a new subsection to read:
"(a1)	If a student lives within a radius of one and one‑half miles of a school that is age‑appropriate for the student, the local board shall either assign the student to that school or provide a voucher to the student to attend a nonpublic school. The amount of the voucher shall be equal to the average per student allocation in State and local funds for the local school administrative unit."
SECTION 2.  G.S. 115C‑302.1 reads as rewritten:
"§ 115C‑302.1.  Salary.
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(a1)	Merit Pay. – The State Board of Education shall establish the entry‑level salary of teachers and instructional support personnel who hold "A" certificates, "Masters" certificates, NBPTS certification, certification based on advanced degrees, and other levels of certification. The principal of a school may pay an employee more than the entry‑level salary if the principal determines that the employee's qualifications or experience makes it appropriate to do so or if the principal determines that it is necessary to do so to recruit and retain teachers in certain areas of certification such as mathematics, science, and special education.
The General Assembly may appropriate in the Current Operations Appropriations Act each year funds for a cost‑of‑living increase for these employees and funds for merit pay. Each employee may receive a cost‑of‑living increase as provided by the General Assembly but shall receive no additional across‑the‑board increment or increment for years of experience.
The principal of each school shall determine the amount of merit pay each employee shall receive each year in accordance with the policy of the local board of education.
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(c3)	Teachers may accumulate annual vacation leave days without any applicable maximum until June 30 of each year. In order that only 30 days of annual vacation leave carry forward to July 1, on June 30 of each year any teacher or instructional support personnel who has accumulated more than 30 days of annual vacation leave shall convert to sick leave the remaining excess accumulation.
Upon separation from service due to service retirement, resignation, dismissal, reduction in force, or death, an employee shall be paid in a lump sum for accumulated annual leave not to exceed a maximum of 30 days. In addition to the maximum of 30 days pay for accumulated annual leave, upon separation from service due to service retirement, any teacher or instructional support personnel with more than 30 days of accumulated annual vacation leave may convert some or all of the excess accumulation to sick leave for creditable service towards retirement. Employees going onto term disability may exhaust annual leave rather than be paid in a lump sum.
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(e)	Teachers in Year‑Round Schools. – Compensation for teachers employed in year‑round schools shall be the same as teachers paid for a 10‑month term, but those days may be scheduled over 12 calendar months. Annual leave, sick leave, workdays, holidays, and salary for teachers who are employed at year‑round schools shall be equivalent to those of other teachers employed for the same number of months, respectively. Teachers paid for a term of 10 months in year‑round schools shall receive their salary in 12 equal installments.
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(h)	Teachers Paid From Other Funds. –  Teachers and instructional support personnel who are not paid out of State funds shall receive a cost‑of‑living increment and merit pay in the same manner as such employees who are paid from State funds.
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SECTION 3.  G.S. 20‑88.1(b) reads as rewritten:
"(b)	The State Board of Education shall adopt a salary range for driver education instructors who are public school employees and who do not hold teacher certificates.
Driver education instructors who are public school employees and who hold teacher certificates shall be paid under the same terms and conditions as other teachers. A day of employment for driver education instructors who hold teacher certificates shall be the same number of hours required of all regular classroom teachers as established by the local board of education."
SECTION 4.  G.S. 115C‑296.2(b)(2)c. reads as rewritten:
"(b)	Definitions. – As used in this subsection:
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(2)	A "teacher" is a person who:
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c.	Is classified as a teacher or instructional support personnel by the State Board of Education; and".
SECTION 5.  G.S. 116‑143.5 reads as rewritten:
"§ 116‑143.5.  Tuition of certain teachers.
Notwithstanding G.S. 116‑143.1, any person classified as a teacher or instructional support personnel by the State Board of Education who (i) has established a legal residence (domicile) in North Carolina and (ii) is employed full‑time by a North Carolina public school, shall be eligible to be charged the in‑State tuition rate for courses relevant to teacher certification or to professional development as a teacher."
SECTION 6.  G.S. 115C‑285 reads as rewritten:
"§ 115C‑285.  Salary.
(a)	Principals and supervisors shall be paid promptly when their salaries are due provided the legal requirements for their employment and service have been met. All principals and supervisors employed by any local school administrative unit who are to be paid from local funds shall be paid promptly as provided by law and as state‑allotted principals and supervisors are paid.
Principals and supervisors paid from State funds shall be paid as follows:
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(1a)	The State Board of Education shall establish the entry‑level salary of principals and assistant principals. The local superintendent may pay a principal or assistant principal more than the entry‑level salary if the superintendent determines that the employee's qualifications or experience makes it appropriate to do so or if the superintendent determines that it is necessary to do so to recruit and retain the employee.
The General Assembly may appropriate in the Current Operations Appropriations Act each year funds for a cost‑of‑living increase for these employees and funds for merit pay. Each employee may receive a cost‑of‑living increase as provided by the General Assembly but shall receive no additional across‑the‑board increment or increment for years of experience.
The superintendent shall determine the amount of merit pay each employee shall receive each year in accordance with the policy of the local board of education.
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	(7)	All persons employed as principals in the schools and institutions listed in subsection (p) of G.S. 115C‑325 shall  receive a cost‑of‑living increment and merit pay in the same manner as such employees of local boards of education.
(b)	Every local board of education may adopt, as to supervisors not paid out of State funds, a salary schedule, but it likewise shall recognize a difference in salaries based on different duties, training, experience, professional fitness, and continued service in the same school system; but if any local board of education shall fail to adopt such a schedule, the State salary schedule shall be in force. Principals and assistant principals  who are not paid out of State funds shall receive a cost‑of‑living increment and merit pay in the same manner as such employees who are paid from State funds.
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SECTION 6.  This act is effective when it becomes law and applies beginning with the 2009‑2010 school year.