A BILL TO BE ENTITLED
AN ACT to modify the uses for qualified zone academy bonds.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 115C‑489.6(a) reads as rewritten:
"(a)	QZAB Program. – The State Board of Education is designated the State education agency responsible for administering the qualified zone academy bond program in North Carolina for the purposes of 26 U.S.C. § 54E. The State Board of Education shall perform all activities required to implement and carry out the qualified zone activity bond program in North Carolina. Those activities include:
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(4)	Awarding the State's allocation of total funds among selected applicants and establishing conditions upon the usage of the allocation. These conditions must include:
a.	Ensuring that the bond proceeds be (i) used only for purposes listed in 26 U.S.C. § 54E and (ii) prioritized so as to be used first in counties determined to have greater economic distress, as determined pursuant to G.S. 143B‑437.08, and for schools where seventy‑five percent (75%) or more of the school's students are eligible to receive free or reduced lunch under the federal lunch program. The State Board of Education shall establish an application process and require any information necessary to enable the Board to accomplish the prioritization and efficient use of the bond proceeds in accordance with this subdivision.
b.	Conditions designed to assure that the allocation is used in a timely manner.
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SECTION 2.  This act is effective when it becomes law and applies to bond proceeds used on or after that date.