A BILL TO BE ENTITLED
AN ACT TO ALLOW QUALIFYING TEACHERS TO RECEIVE BONUSES EARNED DUE TO STUDENT SUCCESS ON ADVANCED PLACEMENT AND INTERNATIONAL BACCALAUREATE EXAMS, APPROVED INDUSTRY CERTIFICATIONS AND CREDENTIALS, OR STUDENT GROWTH and to REIMBURSE LOCAL SCHOOL ADMINISTRATIVE UNITS FOR bonuses already paid.
The General Assembly of North Carolina enacts:

PART I. ADVANCED PLACEMENT/INTERNATIONAL BACCALAUREATE TEACHER BONUSES
SECTION 1.  Section 8.8 of S.L. 2016‑94 reads as rewritten:
"ADVANCED PLACEMENT/INTERNATIONAL BACCALAUREATE TEACHER BONUS PROGRAM
"SECTION 8.8.(a)  The State Board of Education shall establish the Advanced Placement/International Baccalaureate Program (program) to reward advanced course teacher performance and to encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer bonus pay for two school years to licensed teachers of advanced courses, beginning with data from the 2015‑2016 school year, in accordance with the following:
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(3)	For advanced course scores collected from the 2015‑2016 school year and the 2016‑2017 school year, bonuses awarded pursuant to this subsection are payable in January 2017 and January 2018, respectively, to qualifying advanced course teachers.
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"SECTION 8.8.(d)  The State Board of Education shall report on and study the program as follows:
(1)	The State Board shall report on the amount of bonuses awarded to advanced course teachers, including the amount awarded for Advanced Placement courses and the amount awarded for International Baccalaureate Diploma Programme courses, to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Fiscal Research Division by March 15, 2017, and again by March 15, 2018.
(2)	The State Board shall study the effect of the program on advanced course teacher performance and retention. The State Board shall report the results of its findings to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Fiscal Research Division, and the Joint Legislative Education Oversight Committee by March 15, 2018.
"SECTION 8.8.(e)  For the 2017‑2018 fiscal year only, the Director of the Budget shall also include in the base budget, as defined by G.S. 143C‑1‑1(d)(1c), the amount of nonrecurring funds needed to support the program.
"SECTION 8.8.(f)  This section expires June 30, 2018."

PART II. INDUSTRY CERTIFICATIONS AND CREDENTIALS TEACHER BONUSES
SECTION 2.  Section 8.9 of S.L. 2016‑94 reads as rewritten:
"INDUSTRY CERTIFICATIONS AND CREDENTIALS TEACHER BONUS PROGRAM
"SECTION 8.9.(a)  The State Board of Education, in collaboration with the Department of Commerce, shall establish the Industry Certifications and Credentials Teacher Bonus Program (program) to reward the performance of teachers who teach students earning industry certifications or credentials approved by the State Board of Education consistent with G.S. 115C‑156.2 and to encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer bonus pay for two school years to certain teachers who teach students earning approved industry certifications or credentials, beginning with data from the 2015‑2016 school year, in accordance with the following:
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(4)	For data on courses leading to student attainment of industry certifications and credentials collected from the 2015‑2016 school year and the 2016‑2017 school year, bonuses awarded pursuant to this subsection are payable in January 2017 and January 2018, respectively, to qualifying teachers."
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"SECTION 8.9.(c)  The State Board of Education shall report on and study the program as follows:
(1)	The State Board shall report on the amount of bonuses awarded to teachers who teach students earning approved industry certifications or credentials and the type of industry certifications and credentials earned by their students to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Fiscal Research Division by March 15, 2017, and again by March 15, 2018.
(2)	The State Board shall study the effect of the program on teacher performance and retention. The State Board shall report the results of its findings to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Fiscal Research Division, and the Joint Legislative Education Oversight Committee by March 15, 2018.
"SECTION 8.9.(d)  For the 2017‑2018 fiscal year only, the Director of the Budget shall also include in the base budget, as defined by G.S. 143C‑1‑1(d)(1c), the amount of nonrecurring funds needed to support the program.
"SECTION 8.9.(e)  This section expires June 30, 2018."

PART III. THIRD GRADE READING TEACHER PERFORMANCE BONUSES
SECTION 3.  Section 9.7 of S.L. 2016‑94 reads as rewritten:
"THIRD GRADE READING TEACHER PERFORMANCE PROGRAM
"SECTION 9.7.(a)  The State Board of Education shall establish the Third Grade Reading Teacher Performance Program to reward teacher performance and encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer bonus pay to licensed third grade teachers who have an Education Value‑Added Assessment System (EVAAS) student growth index score for third grade reading from the previous school year, beginning with the data from the 2015‑2016 school year, as follows:
(1)	Of the funds appropriated for this program, five million dollars ($5,000,000) shall be allocated for bonuses to licensed third grade teachers who are in the top twenty‑five percent (25%) of teachers in the State according to the EVAAS student growth index score for third grade reading from the previous year. These funds shall be allocated equally among qualifying teachers.
(2)	Of the funds appropriated for this program, five million dollars ($5,000,000) shall be allocated to pay bonuses to licensed third grade teachers who are in the top twenty‑five percent (25%) of teachers in their respective local school administrative units according to the EVAAS student growth index score for third grade reading from the previous year. These funds shall be split proportionally based on average daily membership for each local school administrative unit and then distributed equally among qualifying teachers in each local school administrative unit, subject to the following conditions:
a.	Teachers employed in charter schools and regional schools are not eligible to receive a bonus under this subdivision.
b.	Any teacher working in a local school administrative unit that employs three or fewer third grade teachers shall receive a bonus under this subdivision if that teacher has an EVAAS student growth index score for third grade reading from the previous school year that exceeds expected growth.
(3)	For EVAAS student growth index score data collected during the 2015‑2016 school year and the 2016‑2017 school year, bonuses awarded pursuant to subdivisions (1) and (2) of this subsection are payable in January of 2017 and January of 2018, respectively, to qualifying third grade teachers.
(4)	A teacher who is eligible to receive a bonus under both subdivisions (1) and (2) of this subsection shall receive both bonuses.
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"SECTION 9.7.(c)  The State Board of Education shall report on and study the Third Grade Reading Teacher Performance Program (Program) as follows:
(1)	The State Board of Education shall report on the distribution of statewide bonuses as among local school administrative units and the distribution of bonuses within local school administrative units as among individual schools to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Fiscal Research Division on March 1, 2017, and again on March 1, 2018.
(2)	The State Board of Education shall study the effect of the Program on teacher performance and retention. The State Board of Education shall report the results of its findings to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Fiscal Research Division, and the Joint Legislative Education Oversight Committee no later than March 1, 2018.
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"SECTION 9.7.(e)  This section expires June 30, 2018."

PART IV. FUNDING
SECTION 4.(a)  Of the funds available from the State Public School Fund, the Department of Public Instruction shall make payable in the 2016‑2017 fiscal year bonuses to those qualifying teachers who were ineligible to receive the bonuses under Sections 8.8(a)(3), 8.9(a)(4), or 9.7(a)(3) of S.L. 2016‑94 for failure to remain employed in the same local school administrative unit at least from the 2015‑2016 school year to the 2016‑2017 school year or for failure to continue teaching (i) advanced courses, (ii) students earning approved industry certifications or credentials, or (iii) third grade. These bonuses shall be paid no later than June 30, 2017.
SECTION 4.(b)  Of the funds available from the State Public School Fund, the Department of Public Instruction shall make payable in the 2016‑2017 fiscal year funds necessary to reimburse any local school administrative unit that has already paid bonuses to qualifying teachers who were ineligible to receive the bonuses under Sections 8.8(a)(3), 8.9(a)(4), or 9.7(a)(3) of S.L. 2016‑94 for failure to remain employed in the same local school administrative unit at least from the 2015‑2016 school year to the 2016‑2017 school year or for failure to continue teaching (i) advanced courses, (ii) students earning approved industry certifications or credentials, or (iii) third grade. These reimbursements shall be paid no later than June 30, 2017.

PART V. EFFECTIVE DATE
SECTION 5.  This act is effective when it becomes law.