A BILL TO BE ENTITLED
AN ACT to prohibit costly litigation between county government and Local school administrative units.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 115C‑426(f) reads as rewritten:
"(f)	The capital outlay fund shall include appropriations for:
(1)	The acquisition of real property for school purposes, including but not limited to school sites, playgrounds, athletic fields, administrative headquarters, and garages.
(2)	The acquisition, construction, reconstruction, enlargement, renovation, or replacement of buildings and other structures, including but not limited to buildings for classrooms and laboratories, physical and vocational educational purposes, libraries, auditoriums, gymnasiums, administrative offices, storage, and vehicle maintenance.
(3)	The acquisition or replacement of furniture and furnishings, instructional apparatus, data‑processing equipment, business machines, and similar items of furnishings and equipment.
(4)	The acquisition of school buses as additions to the fleet.
(5)	The acquisition of activity buses and other motor vehicles.
(6)	Such other objects of expenditure as may be assigned to the capital outlay fund by the uniform budget format.
The cost of acquiring or constructing a new building, or reconstructing, enlarging, or renovating an existing building, shall include the cost of all real property and interests in real property, and all plants, works, appurtenances, structures, facilities, furnishings, machinery, and equipment necessary or useful in connection therewith; financing charges; the cost of plans, specifications, studies, reports, and surveys; legal expenses; and all other costs necessary or incidental to the construction, reconstruction, enlargement, or renovation.
No contract for the purchase of a site shall be executed nor any funds expended therefor without the approval of the board of county commissioners as to the amount to be spent for the site. The board of county commissioners has sole authority to determine the maximum amount to be spent for the site.Appropriations in the capital outlay fund shall be funded by revenues made available for capital outlay purposes by the State Board of Education and the board of county commissioners, supplemental taxes levied by or on behalf of the local school administrative unit pursuant to a local act or G.S. 115C‑501 to 115C‑511, the proceeds of the sale of capital assets, the proceeds of claims against fire and casualty insurance policies, and other sources."
SECTION 2.  G.S. 115C‑429 reads as rewritten:
"§ 115C‑429.  Approval of budget; submission to county commissioners; commissioners' action on budget.
(a)	Upon receiving the budget from the superintendent and following the public hearing authorized by G.S. 115C‑428(b), if one is held, the board of education shall consider the budget, make such changes therein as it deems advisable, and submit the entire budget as approved by the board of education to the board of county commissioners not later than May 15, or such later date as may be fixed by the board of county commissioners.
(b)	The board of county commissioners shall complete its action on the school budget on or before July 1, or such later date as may be agreeable to the board of education. The commissioners shall determine the amount of county revenues to be appropriated in the county budget ordinance to the local school administrative unit for the budget year. The board of county commissioners may, in its discretion, allocate part or all of its appropriation by purpose, function, or project as defined in the uniform budget format.
(c)	The board of county commissioners shall have full authority to  call for, and the board of education shall have the duty to make available to the board of county commissioners, upon request, all books, records, audit reports, and other information bearing on the financial operation of the local school administrative unit.
(d)	Nothing in this Article shall be construed to place a duty on the board of commissioners to fund a deficit incurred by a local school administrative unit through failure of the unit to comply with  the provisions of this Article or rules and regulations issued pursuant hereto, or to provide moneys lost through misapplication of moneys by a bonded officer, employee or agent of the local school administrative unit when the amount of the fidelity bond required by the board of education was manifestly insufficient.
(e)	The board of commissioners has sole authority to determine the adequacy of county funds provided for the operating and capital expenses of a local school administrative unit. Nothing in this Chapter shall be construed to place a duty on the board of commissioners to provide more funds for the operating or capital expenses of a local school administrative unit than it deems necessary and appropriate to fund the public schools."
SECTION 3.  G.S. 115C‑431 is repealed.
SECTION 4.  G.S. 115C‑432(a) reads as rewritten:
"(a)	After the board of county commissioners has made its appropriations to the local school administrative unit, the board of education shall adopt a budget resolution making appropriations for the budget year in such sums as the board may deem sufficient and proper. The budget resolution shall conform to the uniform budget format established by the State Board of Education."
SECTION 5.  This act is effective when it becomes law and applies to county appropriations for public schools on or after that date.