A BILL TO BE ENTITLED
AN ACT TO PERMIT CERTAIN TOWNS TO OPERATE CHARTER SCHOOLS.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 115C‑218 reads as rewritten:
"§ 115C‑218.  Purpose of charter schools; definitions; establishment of North Carolina Charter Schools Advisory Board and North Carolina Office of Charter Schools.
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(a1)	Definitions. – For the purposes of this Article, the terms "board of a charter school" and "board of the charter school" include (i) the board of directors of a private nonprofit corporation and (ii) the governing body of a municipality, or a board appointed to operate a charter school by the governing body of a municipality.
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(c)	North Carolina Office of Charter Schools. –
(1)	Establishment of the North Carolina Office of Charter Schools. – There is established the North Carolina Office of Charter Schools, hereinafter referred to in this Article as the Office of Charter Schools. The Office of Charter Schools shall be administratively located in the Department of Public Instruction, subject to the supervision, direction, and control of the State Board of Education. The Office of Charter Schools shall consist of an executive director appointed by the State Board of Education and such other professional, administrative, technical, and clerical personnel as may be necessary to assist the Office of Charter Schools in carrying out its powers and duties.
(2)	Executive Director. – The Executive Director shall report to and serve at the pleasure of the State Board of Education at a salary established by the State Board within the funds appropriated for this purpose. The duties of the Executive Director shall include presenting the recommendations of the Advisory Board at meetings of the State Board upon the request of the State Board.
(3)	Powers and duties. – The Office of Charter Schools shall have the following powers and duties:
a.	Serve as staff to the Advisory Board and fulfill any task and duties assigned to it by the Advisory Board.
b.	Provide technical assistance and guidance to charter schools operating within the State.
c.	Provide technical assistance and guidance to nonprofit corporations or municipalities seeking to operate charter schools within the State.
d.	Provide or arrange for training for charter schools that have received preliminary approval from the State Board.
e.	Assist approved charter schools and charter schools seeking approval from the State Board in coordinating services with the Department of Public Instruction.
f.	Other duties as assigned by the State Board.
(4)	Agency cooperation. – All State agencies and departments shall cooperate with the Office of Charter Schools in carrying out its powers and duties as necessary in accordance with this Article."
SECTION 2.  G.S. 115C‑218.1 reads as rewritten:
"§ 115C‑218.1.  Eligible applicants; contents of applications; submission of applications for approval.
(a)	Any nonprofit corporation or municipality seeking to establish a charter school may apply to establish a charter school. If the applicant seeks to convert a public school to a charter school, the application shall include a statement signed by a majority of the teachers and instructional support personnel currently employed at the school indicating that they favor the conversion and evidence that a significant number of parents of children enrolled in the school favor conversion.
(b)	The application shall contain at least the following information:
(1)	A description of a program that implements one or more of the purposes in G.S. 115C‑218.
(2)	A description of student achievement goals for the school's educational program and the method of demonstrating that students have attained the skills and knowledge specified for those student achievement goals.
(3)	The governance structure of the school including the names of the initial members of the board of directors of a nonprofit, tax‑exempt corporation, the names of the members of the governing body of the municipality, as applicable, and the process to be followed by the school to ensure parental involvement. A teacher employed by the board of directors of a private nonprofit corporation to teach in the charter school may serve as a nonvoting member of the board of directors for the charter school.
(4)	The local school administrative unit in which the school will be located.
(5)	Admission policies and procedures.
(6)	A proposed budget for the school and evidence that the financial plan for the school is economically sound.
(7)	Requirements and procedures for program and financial audits.
(8)	A description of how the school will comply with G.S. 115C‑218.20, 115C‑218.25, 115C‑218.30, 115C‑218.40, 115C‑218.45, 115C‑218.50, 115C‑218.55, 115C‑218.60, 115C‑218.65, 115C‑218.70, 115C‑218.75, 115C‑218.80, 115C‑218.85, and 115C‑218.90.
(9)	Types and amounts of insurance coverage, including bonding insurance for the principal officers of the school, to be obtained by the charter school.
(10)	The term of the charter.
(11)	The qualifications required for individuals employed by the school.
(12)	The procedures by which students can be excluded from the charter school and returned to a public school. Notwithstanding any law to the contrary, any local board may refuse to admit any student who is suspended or expelled from a charter school due to actions that would lead to suspension or expulsion from a public school under G.S. 115C‑390.5 through G.S. 115C‑390.11 until the period of suspension or expulsion has expired.
(13)	The number of students to be served, which number shall be at least 80, and the minimum number of teachers to be employed at the school, which number shall be at least three. However, the charter school may serve fewer than 80 students or employ fewer than three teachers if the application contains a compelling reason, such as the school would serve a geographically remote and small student population.
(14)	Information regarding the facilities to be used by the school and the manner in which administrative services of the school are to be provided.
(15)	The process for conducting a weighted lottery that reflects the mission of the school if the school desires to use a weighted lottery.
(c)	The State Board shall establish reasonable fees of no less than five hundred dollars ($500.00) and no more than one thousand dollars ($1,000) for initial and renewal charter applications, in accordance with Article 2A of Chapter 150B of the General Statutes. No application fee shall be refunded in the event the application is rejected or the charter is revoked."
SECTION 3.  G.S. 115C‑218.2(b) reads as rewritten:
"(b)	Before taking action regarding a charter school or charter school applicant, including recommendations on preliminary or final approval of charter applications, renewals of charters, nonrenewals of charters, and revocations of charters, the Advisory Board or a committee of the Advisory Board shall provide an opportunity for the applicant or the member of a board of a charter school to address the Advisory Board or its committee, if present, at a meeting."
SECTION 4.  G.S. 115C‑218.15 reads as rewritten:
"§ 115C‑218.15.  Charter school operation.
(a)	A charter school that is approved by the State shall be a public school within the local school administrative unit in which it is located. All charter schools shall be accountable to the State Board for ensuring compliance with applicable laws and the provisions of their charters.
(b)	A charter school shall be operated by (i) a private nonprofit corporation that shall have received federal tax‑exempt status no later than 24 months following final approval of the application or (ii) a governing body of a municipality.
(b1)	The board of directors of a private nonprofit corporation operating a charter school shall adopt a conflict of interest and anti‑nepotism policy that includes, at a minimum, the following:
(1)	The requirements of Chapter 55A of the General Statutes related to conflicts of interest.
(2)	A requirement that before any immediate family, as defined in G.S. 115C‑12.2, of any member of the board of directors or a charter school employee with supervisory authority shall be employed or engaged as an employee, independent contractor, or otherwise by the board of directors in any capacity, such proposed employment or engagement shall be (i) disclosed to the board of directors and (ii) approved by the board of directors in a duly called open‑session meeting. The burden of disclosure of such a conflict of interest shall be on the applicable board member or employee with supervisory authority. If the requirements of this subsection are complied with, the charter school may employ immediate family of any member of the board of directors or a charter school employee with supervisory authority.
(3)	A requirement that a person shall not be disqualified from serving as a member of a charter school's board of directors because of the existence of a conflict of interest, so long as the person's actions comply with the school's conflict of interest policy established as provided in this subsection and applicable law.
(b2)	The governing body of a municipality operating a charter school shall adopt a conflict of interest and anti‑nepotism policy related to the charter school that includes, at a minimum, the requirements of subdivisions (2) and (3) of subsection (b1) of this section.
(c)	A charter school shall operate under the written charter signed by the State Board and the applicant. A charter school is not required to enter into any other contract. The charter shall incorporate the information provided in the application, as modified during the charter approval process, and any terms and conditions imposed on the charter school by the State Board of Education. No other terms may be imposed on the charter school as a condition for receipt of local funds.
(d)	The board of a charter school shall decide matters related to the operation of the school, including budgeting, curriculum, and operating procedures.
(e)	The board of directors of the private nonprofit corporation operating the charter school may have members who reside outside of the State. However, the State Board of Education may require by policy that a majority of the board of directors and all officers of the board of directors reside within the State."
SECTION 5.  G.S. 115C‑218.20(a) reads as rewritten:
"(a)	The board of a charter school may sue and be sued. The State Board of Education shall adopt rules to establish reasonable amounts and types of liability insurance that the board of a charter school shall be required by the charter to obtain. The board of the charter school shall obtain at least the amount of and types of insurance required by these rules to be included in the charter. Any sovereign immunity of the charter school, of the organization that operates the charter school, or its members, officers, or directors, or of the employees of the charter school or the organization that operates the charter school, is waived to the extent of indemnification by insurance."
SECTION 6.  G.S. 115C‑218.25 reads as rewritten:
"§ 115C‑218.25.  Open meetings and public records.
The charter school and board of the charter school are subject to the Public Records Act, Chapter 132 of the General Statutes, and the Open Meetings Law, Article 33C of Chapter 143 of the General Statutes. Notwithstanding the requirements of Chapter 132 of the General Statutes, inspection of charter school personnel records for those employees directly employed by the board of the charter school shall be subject to the requirements of Article 21A of this Chapter. The charter school and board of the charter school shall use the same schedule established by the Department of Natural and Cultural Resources for retention and disposition of records of local school administrative units."
SECTION 7.  G.S. 115C‑218.45(f) reads as rewritten:
"(f)	The charter school may give enrollment priority to any of the following:
(1)	Siblings of currently enrolled students who were admitted to the charter school in a previous year. For the purposes of this section, the term "siblings" includes any of the following who reside in the same household: half siblings, stepsiblings, and children residing in a family foster home.
(2)	Siblings of students who have completed the highest grade level offered by that school and who were enrolled in at least four grade levels offered by the charter school or, if less than four grades are offered, in the maximum number of grades offered by the charter school.
(3)	Limited to no more than fifteen percent (15%) of the school's total enrollment, unless granted a waiver by the State Board of Education, the following:
a.	Children of the school's full‑time employees.
b.	Children of the members of the board of the charter school.
(4)	A student who was enrolled in the charter school within the two previous school years but left the school (i) to participate in an academic study abroad program or a competitive admission residential program or (ii) because of the vocational opportunities of the student's parent.
(5)	A student who was enrolled in another charter school in the State in the previous school year that does not offer the student's next grade level.
(6)	A student who was enrolled in another charter school in the State in the previous school year that does not offer the student's next grade level and both of the charter schools have an enrollment articulation agreement to accept students or are governed by the same board of a charter school.
(7)	If the charter school is operated by a municipality, domiciliaries of the municipality."
SECTION 8.  G.S. 115C‑218.50(b)(2) reads as rewritten:
"(2)	A charter school, upon approval by the board of the charter school, may establish fees for extracurricular activities, except those fees shall not exceed the fees for the same extracurricular activities charged by a local school administrative unit in which forty percent (40%) or more of the students enrolled in the charter school reside."
SECTION 9.  G.S. 115C‑218.70 reads as rewritten:
"§ 115C‑218.70.  Driving eligibility certificates.
In accordance with rules adopted by the State Board of Education, the designee of the board of the charter school shall do all of the following:
(1)	Sign driving eligibility certificates that meet the conditions established in G.S. 20‑11.
(2)	Obtain the necessary written, irrevocable consent from parents, guardians, or emancipated juveniles, as appropriate, in order to disclose information to the Division of Motor Vehicles.
(3)	Notify the Division of Motor Vehicles when a student who holds a driving eligibility certificate no longer meets its conditions."
SECTION 10.  G.S. 115C‑218.75(a) reads as rewritten:
"(a)	Health and Safety Standards. – A charter school shall meet the same health and safety requirements required of a local school administrative unit. The Department of Public Instruction shall ensure that charter schools provide parents and guardians with information about meningococcal meningitis and influenza and their vaccines at the beginning of every school year. This information shall include the causes, symptoms, and how meningococcal meningitis and influenza are spread and the places where parents and guardians may obtain additional information and vaccinations for their children.
The Department of Public Instruction shall also ensure that charter schools provide parents and guardians with information about cervical cancer, cervical dysplasia, human papillomavirus, and the vaccines available to prevent these diseases. This information shall be provided at the beginning of the school year to parents of children entering grades five through 12. This information shall include the causes and symptoms of these diseases, how they are transmitted, how they may be prevented by vaccination, including the benefits and possible side effects of vaccination, and the places where parents and guardians may obtain additional information and vaccinations for their children.
The Department of Public Instruction shall also ensure that charter schools provide students in grades seven through 12 with information annually on the preventable risks for preterm birth in subsequent pregnancies, including induced abortion, smoking, alcohol consumption, the use of illicit drugs, and inadequate prenatal care.
The Department of Public Instruction shall also ensure that charter schools provide students in grades nine through 12 with information annually on the manner in which a parent may lawfully abandon a newborn baby with a responsible person, in accordance with G.S. 7B‑500.
The Department of Public Instruction shall also ensure that the guidelines for individual diabetes care plans adopted by the State Board of Education under G.S. 115C‑12(31) are implemented in charter schools in which students with diabetes are enrolled and that charter schools otherwise comply with the provisions of G.S. 115C‑375.3.
The Department of Public Instruction shall ensure that charter schools comply with G.S. 115C‑375.2A. The board of a charter school shall provide the school with a supply of emergency epinephrine auto‑injectors necessary to carry out the provisions of G.S. 115C‑375.2A."
SECTION 11.  G.S. 115C‑218.90 reads as rewritten:
"§ 115C‑218.90.  Employment requirements.
(a)	Employees. –
(1)	An employee of a charter school is not an employee of the local school administrative unit in which the charter school is located. The charter school's board of directors or the governing body of a municipality shall employ and contract with necessary teachers to perform the particular service for which they are employed in the school; at least fifty percent (50%) of these teachers shall hold teacher licenses. All teachers who are teaching in the core subject areas of mathematics, science, social studies, and language arts shall be college graduates.
The charter school's board of directors or the governing body of a municipality also may employ necessary employees who are not required to hold teacher licenses to perform duties other than teaching and may contract for other services. The charter school's board of directors or the governing body of a municipality may discharge teachers and nonlicensed employees.
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(4)	The employees of a charter school operated by a private nonprofit corporation 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 State Health Plan for Teachers and State Employees. 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 operated by a private nonprofit corporation are public school employees. Employees of a charter school whose board of directors elects to become a participating employer under G.S. 135‑5.3 are "teachers" for the purpose of membership in the North Carolina Teachers' and State Employees' Retirement System. In no event shall anything contained in this Article require the North Carolina Teachers' and State Employees' Retirement System to accept employees of a private employer as members or participants of the System.
(4a)	The employees of a charter school operated by a municipality shall be deemed employees of that municipality and shall be eligible for any employee benefits, including retirement benefits and health benefits, provided to other employees of that municipality.
(5)	Education employee associations shall have equal access to charter school employees as provided in G.S. 115C‑335.9.
(b)	Criminal History Checks. –
(1)	If the local board of education of the local school administrative unit in which a charter school is located has adopted a policy requiring criminal history checks under G.S. 115C‑332, then the board of each charter school located in that local school administrative unit shall adopt a policy mirroring the local board of education policy that requires an applicant for employment to be checked for a criminal history, as defined in G.S. 115C‑332. Each board of a charter school shall apply its policy uniformly in requiring applicants for employment to be checked for a criminal history before the applicant is given an unconditional job offer. A board of a charter school may employ an applicant conditionally while the board is checking the person's criminal history and making a decision based on the results of the check.
(2)	There shall be no liability for negligence on the part of the State Board of Education or the board of the charter school, or their employees, arising from any act taken or omission by any of them in carrying out the provisions of this subsection. The immunity established by this subsection shall not extend to gross negligence, wanton conduct, or intentional wrongdoing that would otherwise be actionable. The immunity established by this subsection shall be deemed to have been waived to the extent of indemnification by insurance, indemnification under Articles 31A and 31B of Chapter 143 of the General Statutes, and to the extent sovereign immunity is waived under the Tort Claims Act, as set forth in Article 31 of Chapter 143 of the General Statutes."
SECTION 12.  G.S. 20‑11(n)(4)d. reads as rewritten:
"d.	The designee of the board of the charter school in which the person is enrolled."
SECTION 13.  G.S. 20‑84(b)(3a) reads as rewritten:
"(3a)	A motor vehicle that is owned and exclusively operated by a board of a charter school under G.S. 115C‑218.5 to operate a charter school and identified by a permanent decal or painted marking disclosing the name of the charter school. The motor vehicle shall only be used for student transportation and official charter school related activities."
SECTION 14.  G.S. 105‑228.90(b)(1) reads as rewritten:
"(1)	Charter school. – An entity that has a charter under G.S. 115C‑218.5 to operate a charter school."
SECTION 15.  G.S. 115C‑75.12(a)(4)a. reads as rewritten:
"a.	Conversion to charter. – If, in the development of the transition plan, a local board of education indicates by resolution to the State Board of Education that the local board of education elects to not receive the transfer of the achievement school back to the local school administrative unit, the AS operator may apply to convert the school to a charter school under Article 14A of this Chapter. If a charter is awarded, the board of directors of the charter school may request to use the facility as provided in G.S. 115C‑218.35. If the AS operator does not seek conversion to a charter school or fails to receive a charter, the State Board of Education may close the school as provided in subdivision (2) of this subsection."
SECTION 16.  G.S. 115C‑375.3 reads as rewritten:
"§ 115C‑375.3.  Guidelines to support and assist students with diabetes.
Local boards of education and boards of charter schools shall ensure that the guidelines adopted by the State Board of Education under G.S. 115C‑12(31) are implemented in schools in which students with diabetes are enrolled. In particular, the boards shall require the implementation of the procedures set forth in those guidelines for the development and implementation of individual diabetes care plans. The boards also shall make available necessary information and staff development to teachers and school personnel in order to appropriately support and assist students with diabetes in accordance with their individual diabetes care plans."
SECTION 17.  This act applies only to the Town of Matthews and the Town of Mint Hill.
SECTION 18.  This act is effective when it becomes law and applies to applications to establish a charter school submitted on or after that date.