North Carolina 2025-2026 Regular Session

North Carolina House Bill H149 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 149
	3	+	H D
	4	+	HOUSE BILL DRH20000-NG-25A
	5	+
5	6
6	7
7	8		Short Title: School Financial Flexibility Pilot Program. (Public)
8	9		Sponsors: Representative Carver.
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Education - K-12, if favorable, Rules, Calendar, and Operations of the House
11		-	February 21, 2025
12		-	H149 -v-1
	10	+	Referred to:
	11	+
	12	+	DRH20000 -NG-25A
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO CREATE A PILOT PROGRAM TO ALLOW MORE FINANCIAL AND HIRING 2
15	15		FLEXIBILITY FOR CERTAIN SCHOOL DISTRICTS. 3
16	16		The General Assembly of North Carolina enacts: 4
17	17		SECTION 1.(a) Authorize Financial and Hiring Flexibility Plan; Purpose. – Prior to 5
18	18		the 2026-2027 school year, an eligible district (District) may submit a Financial and Hiring 6
19	19		Flexibility Plan (FHFP) to the State Board of Education (State Board) to permit the local board 7
20	20		of education (local board) to decide certain matters related to the operation of the schools under 8
21	21		the local board's control within the District, including the use of State funds, as provided in this 9
22	22		act. The purpose of operating a District under an FHFP shall be for the local board to design and 10
23	23		create a comprehensive, innovative, strategic vision allowing additional flexibility to the District 11
24	24		to provide a high-quality education to all students. 12
25	25		SECTION 1.(b) For purposes of this act, "eligible district" means a local school 13
26	26		administrative unit that meets both of the following criteria: 14
27	27		(1) The local school administrative unit has the authority to levy and lay special 15
28	28		taxes for the payment of bonds issued by the governing body of the unit. 16
29	29		(2) The local school administrative unit had an allotted average daily membership 17
30	30		of at least 5,000 for the 2023-2024 school year. 18
31	31		SECTION 2.(a) Submission of an FHFP. – A local board desiring to operate under 19
32	32		an FHFP shall submit an FHFP that meets the requirements of this section to the State Board by 20
33	33		January 15, 2026, to begin operation of the plan with the 2026-2027 school year. The local board 21
34	34		shall include at least the following components in its FHFP: 22
35	35		(1) A resolution adopted by the local board to implement the FHFP in the District. 23
36	36		(2) A detailed description of how the flexibility allowed under the FHFP will aid 24
37	37		the District in meeting each of the following goals by the conclusion of the 25
38	38		2030-2031 school year: 26
39	39		a. Ensure that one hundred percent (100%) of all students have 27
40	40		completed a career development plan by the beginning of their senior 28
41	41		year of high school. 29
42	42		b. Increase teacher retention to a ninety percent (90%) retention rate. 30
43	43		c. Improve the average growth index of District schools to 0.50 or 31
44	44		greater. 32
45	45		d. Increase the growth rate of any subgroups of students below the 33
46	46		average growth rate in the 2024-2025 school year to above the average 34
47		-	overall growth rate for the State. 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 149-First Edition
	47	+	overall growth rate for the State. 35
	48	+	H.B. 149
	49	+	Feb 17, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH20000-NG-25A
49	52		e. Quantify all other measures of success of the FHFP in achieving the 1
50	53		goals established in the FHFP. 2
51	54		SECTION 2.(b) State Board Approval. – The State Board shall approve an FHFP 3
52	55		that meets the requirements of this section by March 15, 2026, to begin implementation July 1, 4
53	56		2026. 5
54	57		SECTION 2.(c) State Board of Education Review; Termination of Plan. – The State 6
55	58		Board shall conduct a review of the operation and student performance of a District operating 7
56	59		under an approved FHFP following the end of the 2030-2031 school year, and at least every three 8
57	60		years thereafter, to ensure that the District is meeting the expected academic goals set forth in the 9
58	61		FHFP and complying with all financial and observance requirements in this act. The State Board 10
59	62		shall terminate an FHFP after a review for any of the following grounds: 11
60	63		(1) Failure to meet the academic strategic goals for student performance 12
61	64		contained in the plan. 13
62	65		(2) Identification of the majority of schools in the District as low-performing 14
63	66		schools in the two school years immediately preceding the review. 15
64	67		(3) Failure to meet generally accepted standards of fiscal management or 16
65	68		violation of State or federal law. 17
66	69		SECTION 2.(d) Early Termination. – If the State Board determines that a District 18
67	70		operating under an approved FHFP has failed to meet generally accepted standards of fiscal 19
68	71		management or violated State or federal law at any time, the State Board shall terminate the 20
69	72		FHFP. In addition, if the Superintendent of Public Instruction (Superintendent) finds that 21
70	73		satisfactory progress is not being made toward the strategic goals identified in an FHFP after 22
71	74		reviewing the reports required to be submitted under Section 8 of this act, the Superintendent 23
72	75		shall recommend to the State Board that the FHFP be terminated. The State Board may terminate 24
73	76		an FHFP if such a recommendation is made by the Superintendent. If an FHFP is terminated, the 25
74	77		District shall continue to operate under the FHFP until the end of the school year in which the 26
75	78		termination determination is made. 27
76	79		SECTION 2.(e) Transition. – If an FHFP is terminated, notwithstanding 28
77	80		G.S. 115C-105.26, the State Board may grant the District a waiver to the licensure requirements 29
78	81		of G.S. 115C-295 annually, for up to three years, to facilitate the transition to employment of 30
79	82		fully licensed teachers. 31
80	83		SECTION 3.(a) Teachers. – Notwithstanding G.S. 115C-295, beginning July 1, 32
81	84		2026, for as long as a District is operating under an FHFP, up to fifty percent (50%) of the 33
82	85		teachers in each school in the District may be employed as teachers despite not holding teacher 34
83	86		licenses if they meet the requirements set out in subsection (b) of this section. All teachers who 35
84	87		are teaching in the core subject areas of mathematics, science, social studies, and language arts 36
85	88		shall be college graduates. 37
86	89		SECTION 3.(b) Requirements for Unlicensed Teachers. – All teachers hired by a 38
87	90		local board operating under an FHFP who are not licensed as a teacher by the State shall complete 39
88	91		preservice training, which may be offered through an educator preparation program or by a local 40
89	92		school administrative unit, in all of the following areas prior to beginning instruction: 41
90	93		(1) The identification and education of children with disabilities. 42
91	94		(2) Positive management of student behavior. 43
92	95		(3) Effective communication for defusing and de-escalating disruptive or 44
93	96		dangerous behavior. 45
94	97		(4) Safe and appropriate use of seclusion and restraint. 46
95	98		SECTION 4. School Operation. – All schools in a District operating under an FHFP 47
96	99		shall be deemed to have been continuously operating under a modified calendar since the 48
97	100		2003-2004 school year for purposes of G.S. 115C-84.2(d). 49
98	101		SECTION 5. Available State Funds. – Beginning with the 2026-2027 fiscal year, 50
99	102		the Department of Public Instruction shall calculate the amount of State funds to be allocated to 51 General Assembly Of North Carolina Session 2025
100		-	~~House Bill 149-First Edition~~ Page 3
	103	+	DRH20000-NG-25A Page 3
101	104		a District operating under an FHFP on the same basis as other local school administrative units 1
102	105		and shall distribute those funds to the unit. The Department shall use statewide average salary 2
103	106		figures for the purpose of calculating the dollar equivalent of guaranteed positions as necessary. 3
104	107		The funds allocated to a District shall be subject to any restrictions as to use imposed by federal 4
105	108		law, the conditions of federal or State grants, or as provided through any rules that the State 5
106	109		Board adopts to ensure compliance with federal regulations. Notwithstanding G.S. 115C-105.25, 6
107	110		use of these funds shall otherwise be unrestricted except as provided in this act. 7
108	111		SECTION 6. Provision for Disbursement of State Money. – The deposit of money 8
109	112		in the State treasury to the credit of a District operating under an approved FHFP shall be made 9
110	113		as necessary for the operation of the District. The State Board may withhold money to be 10
111	114		distributed to a District if any report required to be filed with State school authorities is more 11
112	115		than 30 days overdue. Money in the State Public School Fund and State bond moneys shall be 12
113	116		released only on warrants drawn on the State Treasurer, signed by a local official as required by 13
114	117		the State Board. 14
115	118		SECTION 7. Withholding for Retirement Contributions. – Upon notification by the 15
116	119		Board of Trustees of the Teachers' and State Employees' Retirement System to the State 16
117	120		Treasurer and the Office of State Budget and Management as to any default of a District operating 17
118	121		under an approved FHFP, the State Board shall withhold from any State appropriation due to the 18
119	122		District an amount equal to the sum of all delinquent contributions and payments due to the 19
120	123		Retirement Systems Division and shall transmit that amount to the Retirement Systems Division. 20
121	124		SECTION 8. Reporting to Superintendent. – A District operating under an approved 21
122	125		FHFP shall report to the Superintendent no later than July 15, 2027, and each year thereafter as 22
123	126		follows: 23
124	127		(1) An annual report on the number of licensed and unlicensed teachers and use 24
125	128		of long-term substitutes in filling vacancies for classroom teachers. This report 25
126	129		shall also provide recruiting data on the number of licensed and unlicensed 26
127	130		teachers hired during the school year and overall employee retention in each 27
128	131		school year. In addition, the report shall also provide comparisons with the 28
129	132		data from the previous school year on the information required by this 29
130	133		subdivision at the local school administrative unit level. 30
131	134		(2) Specific actions taken to close academic gaps between student groups on State 31
132	135		assessments. 32
133	136		(3) A breakdown of how State funds are being spent in the District. 33
134	137		(4) Any available data on outcomes identified as goals in the FHFP. 34
135	138		(5) Any other reporting requirements deemed necessary by the Superintendent of 35
136	139		Public Instruction. 36
137	140		SECTION 9. Report to the General Assembly. – No later than November 15, 2027, 37
138	141		and each year thereafter that a District operates under an FHFP, the Superintendent shall report 38
139	142		to the Joint Legislative Education Oversight Committee on the progress of the FHFP on at least 39
140	143		the following topics: 40
141	144		(1) A summary of the data provided by Districts operating under an FHFP to the 41
142	145		Superintendent in the annual report. 42
143	146		(2) The effectiveness of the FHFP on hiring and retaining teachers in Districts, 43
144	147		determined by annual turnover rates and teacher vacancies, compared with 44
145	148		other local school administrative units not operating under an FHFP. 45
146	149		(3) An assessment of the financial flexibilities utilized by local boards operating 46
147	150		under an FHFP and any recommended changes or modifications. 47
148	151		(4) Any available data on outcomes identified as goals in any FHFP. 48
149	152		(5) Any other information the Superintendent deems relevant to the pilot program 49
150	153		authorized by this act. 50
151	154		SECTION 10. This act is effective when it becomes law. 51