AN ACT to solely provide authorization for the state board of EDUCATION to approve requests of local boards of education to reform CONTINUALLY low‑PERFORMING schools as either a transformation model, restart model, turnaround model, or school closure model; to define transformation model as A school which increases teacher and school leader effectiveness, creates comprehensive instructional reform STRATEGIES, increases learning time, creates community‑oriented schools, and provides operational flexibility and sustained support; to define restart model as allowing the school to operate under the same rules as a charter school  or under the management of an educational management organization with no increase in the maximum number of charter schools as provided in G.S. 115c‑238.29D(b); to define turnaround model as replacing the principal if the principal has been in that position for at least three years and rehiring no more than fifty percent of school staff, adopting a new school governance structure consistent with article 8b of chapter 115c of the general statutes, and IMPLEMENTING an instructional program aligned with the standard course of study; to define school closure MODEL as closing the school consistent with G.S. 115c‑72 and enrolling the students in another HIGHER‑ACHIEVING school in the local school ADMINISTRATIVE unit consistent with article 25 of chapter 115C of the general statutes; and to provide authorization to the state board to adopt RULES and procedures consistent with these defined models; and to implement these models with annual reporting to the state board of education from the local school ADMINISTRATIVE units.

The General Assembly of North Carolina enacts:

SECTION 1.  Article 8B of Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C‑105.37B.  Reform of continually low‑performing schools.
(a)	Notwithstanding any other provision of this Article, the State Board of Education is authorized to approve a local board of education's request to reform any school in its administrative unit which the State Board of Education has identified as one of the continually low‑performing schools in North Carolina.
If the State Board of Education approves a local board of education's request to reform a school, the State Board of Education may authorize the local board of education to adopt one of the following models in accordance with State Board of Education requirements:
(1)	Transformation model, which would address the following four specific areas critical to transforming a continually low‑performing school:
a.	Developing and increasing teacher and school leader effectiveness.
b.	Comprehensive instructional reform strategies.
c.	Increasing learning time and creating community‑oriented schools.
d.	Providing operational flexibility and sustained support.
(2)	Restart model, in which the State Board of Education would authorize the local board of education to operate the school with the same exemptions from statutes and rules as a charter school authorized under Part 6A of Article 16 of this Chapter, or under the management of an educational management organization that has been selected through a rigorous review process. A school operated under this subdivision remains under the control of the local board of education, and employees assigned to the school are employees of the local school administrative unit with the protections provided by G.S. 115C-325.  This subdivision shall not be interpreted to increase the maximum number of charter schools provided in G.S. 115C-238.29D(b). No school authorized under this subsection shall count against the limit provided for charter schools in G.S. 115C-238.29D(b).
(3)	Turnaround model, which would involve, among other actions, replacing the principal, if the principal has been in that position for at least three years, and rehiring no more than fifty percent (50%) of the school's staff, adopting a new governance structure at the school consistent with this Article, and implementing an instructional program aligned with the Standard Course of Study.
(4)	School closure model, in which a local school administrative unit would close the school consistent with G.S. 115C‑72 and enroll the students who attended the school in other, higher‑achieving schools in the local school administrative unit consistent with Article 25 of this Chapter.
(b)	The State Board of Education shall adopt rules to develop requirements for the models for school reform established in subsection (a) of this section.
(c)	The State Board shall establish a procedure to implement this section. This procedure shall include annual reporting requirements from local boards that are authorized to use one of the models under this section and shall include a procedure for removing or continuing the authorization.
(d)	Nothing in this section shall be construed to limit the authority of a local board of education as otherwise provided in this Chapter."
SECTION 2.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 27th day of May, 2010.

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		 Walter H. Dalton
	 President of the Senate

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		 William L. Wainwright
	 Speaker Pro Tempore of the House of Representatives

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		 Beverly E. Perdue
	 Governor

Approved __________.m. this ______________ day of ___________________, 2010