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North Carolina House Bill H556

North Carolina 2025-2026 Regular Session

North Carolina House Bill H556 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 556
3+H D
4+HOUSE BILL DRH50023-NH-77C
5+
56
67
78 Short Title: 2025 Charter Schools Review Board Omnibus. (Public)
89 Sponsors: Representative Willis.
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-March 31, 2025
12-*H556 -v-1*
10+Referred to:
11+
12+*DRH50023 -NH-77C*
1313 A BILL TO BE ENTITLED 1
1414 AN ACT TO REQUIRE CHARTER SCHOOLS REVIEW BOARD APPROVAL OF ALL 2
1515 STATE RULES RELATED TO CHARTER SCHOOLS , TO AUTHORIZE THE REVIEW 3
1616 BOARD TO HIRE LEGAL COUNCIL, TO EXEMPT CHARTER SCHOOLS FROM 4
1717 REPORTING CLASS RANK ON STUDENT TRANSCRIPTS, TO ALLOW CHARTER 5
1818 SCHOOLS TO USE ALTERNATE TEACHER EVALUATIONS, TO REQUIRE 6
1919 LOW-PERFORMING CHARTERS TO REPORT IMPROVEMENT PLANS TO THE 7
2020 REVIEW BOARD ONLY, TO ALLOW THE CHARTER SCHOOLS REVIEW BOARD 8
2121 TO REVIEW DECISIONS RELATED TO CHARTER SCHOOL FEDERAL FUNDING , 9
2222 TO CREATE AN EXPEDITED APPLICATION PROCESS FOR CERTAIN REMOTE 10
2323 CHARTER ACADEMIES, AND TO HAVE REMOTE CHARTER ACADEMIES 11
2424 GRADED SEPARATELY . 12
2525 The General Assembly of North Carolina enacts: 13
2626 SECTION 1.(a) G.S. 115C-218 reads as rewritten: 14
2727 "§ 115C-218. Purpose of charter schools; role of State Board of Education; establishment 15
2828 of North Carolina Charter Schools Review Board and North Carolina Office of 16
2929 Charter Schools. 17
3030 … 18
3131 (a1) State Board of Education. – The State Board of Education shall have the following 19
3232 duties regarding charter schools: 20
3333 (1) Rulemaking. – To establish all rules for the operation and approval of charter 21
3434 schools. Any rule or policy adopted by the State Board regarding charter 22
3535 schools shall first be approved and recommended by the Charter Schools 23
3636 Review Board. 24
3737 (2) Funding. – To allocate funds to charter schools. 25
3838 (3) Appeals. – To hear appeals from decisions of the Charter Schools Review 26
3939 Board under G.S. 115C-218.9. 27
4040 (4) Accountability. – To ensure accountability from charter schools for school 28
4141 finances and student performance. 29
4242 (b) North Carolina Charter Schools Review Board. – 30
4343 … 31
4444 (10) Powers and duties. – The Review Board shall have the following duties: 32
4545 a. To make recommendations to the State Board of Education on the 33
4646 adoption of propose, recommend, and approve rules and policies 34
47-regarding all aspects of charter school operation, including time lines, 35 General Assembly Of North Carolina Session 2025
48-Page 2 House Bill 556-First Edition
49-processes, standards, and criteria for acceptance and approval of 1
50-applications, monitoring of charter schools, and grounds for 2
51-revocation of charters. 3
52-… 4
53-e. To review any decisions or conduct any hearings pursuant to 20 U.S.C. 5
54-§ 1231b-2 concerning the provision, repayment, or termination of 6
55-funds provided to a charter school. 7
56-f. To contract for and employ legal counsel, including private counsel, 8
57-to advise, represent, and provide litigation services to the Review 9
58-Board, without need to obtain permission or approval pursuant to 10
59-G.S. 114-2.3 or G.S. 147-17. 11
60-… 12
61-(c) North Carolina Office of Charter Schools. – 13
62-… 14
63-(2) Executive Director. – The Executive Director shall report to and serve at the 15
64-pleasure of the Superintendent of Public Instruction Review Board at a salary 16
65-established by the Superintendent Review Board within the funds 17
66-appropriated for this purpose. The duties of the Executive Director shall 18
67-include presenting the recommendations and decisions of the Review Board 19
68-at meetings of the State Board. 20
69-…." 21
70-SECTION 1.(b) G.S. 115C-218.15(c) reads as rewritten: 22
71-"(c) A charter school shall operate under the written charter signed by the State 23
72-Superintendent and the applicant. The terms of the written charter shall be approved by the 24
73-Review Board. A charter school is not required to enter into any other contract. The charter shall 25
74-incorporate the information provided in the application, as modified during the charter approval 26
75-process, and any terms and conditions imposed on the charter school by the Review Board, or if 27
76-the approval is granted through an appeal pursuant to G.S. 115C-218.9, any conditions imposed 28
77-by the State Board of Education. No other terms may be imposed on the charter school as a 29
78-condition for receipt of local funds." 30
79-SECTION 1.(c) G.S. 115C-218.85 is amended by adding a new subsection to read: 31
80-"(d) Notwithstanding G.S. 116-11(10a) or any other provision of law to the contrary, a 32
81-charter school shall not be required to list class rank on a student's official transcript or record." 33
82-SECTION 1.(d) G.S. 115C-218.90(a) is amended by adding a new subdivision to 34
83-read: 35
84-"(7) A charter school may develop and use any evaluation for conducting 36
85-evaluation of teachers provided that it includes standards and criteria similar 37
86-to those used in the North Carolina Professional Teaching Standards and 38
87-North Carolina Teacher Evaluation Process, or such other evaluation standard 39
88-and process required to be used by local school administrative units." 40
89-SECTION 1.(e) G.S. 115C-218.94 is amended by adding a new subsection to read: 41
90-"(c) The Review Board shall require charter schools that are identified as low-performing 42
91-or continually low-performing to prepare and report on plans to improve the performance of the 43
92-school. The requirements of G.S. 115C-105.27 shall not apply to charter schools." 44
93-SECTION 1.(f) G.S. 115C-218.105 reads as rewritten: 45
94-"§ 115C-218.105. State and local funds for a charter school. 46
95-… 47
96-(a2) The State Board shall may withhold or reduce distribution of funds to a charter school 48
97-if any of the following applies: 49 General Assembly Of North Carolina Session 2025
98-House Bill 556-First Edition Page 3
99-(1) The change in funding is due to an annual adjustment based on enrollment or 1
100-is a general adjustment to allocations that is not specific to the charter or 2
101-actions of that charter school. 3
102-(2) The Review Board notifies the State Board that the charter school has 4
103-materially violated a term of its charter, has violated a State statute or federal 5
104-law, or has had its charter terminated or nonrenewed. 6
105-(3) The Superintendent of Public Instruction Review Board notifies the State 7
106-Board that the charter school has failed to meet generally accepted standards 8
107-of fiscal management or has violated a State or federal requirement for receipt 9
108-of funds. 10
47+regarding all aspects of charter school operation, including time lines, 35
48+processes, standards, and criteria for acceptance and approval of 36
49+H.B. 556
50+Mar 27, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH50023-NH-77C
53+applications, monitoring of charter schools, and grounds for 1
54+revocation of charters. 2
55+… 3
56+e. To review any decisions or conduct any hearings pursuant to 20 U.S.C. 4
57+§ 1231b-2 concerning the provision, repayment, or termination of 5
58+funds provided to a charter school. 6
59+f. To contract for and employ legal counsel, including private counsel, 7
60+to advise, represent, and provide litigation services to the Review 8
61+Board, without need to obtain permission or approval pursuant to 9
62+G.S. 114-2.3 or G.S. 147-17. 10
10963 … 11
110-(c2) The Superintendent of Public Instruction Review Board shall, in consultation with 12
111-charter schools and local school administrative units, create a standardized enrollment 13
112-verification and transfer request document that each charter school shall use to request the per 14
113-pupil share of the local current expense fund from the local school administrative units. Charter 15
114-schools shall only be required to list the name, age, grade, address, date of charter enrollment, 16
115-date of charter withdrawal, district of residence, and student identification number of each student 17
116-as provided to the charter school by the student's parent or guardian in the enrollment verification 18
117-and transfer request document that the charter school submits to the local school administrative 19
118-units. A charter school, in its discretion, may take further steps to confirm the student's residence 20
119-in a particular local school administrative unit. 21
120-(c3) The Superintendent of Public Instruction Review Board shall, in consultation with 22
121-charter schools and local school administrative units, create a standardized procedure that local 23
122-school administrative units shall use when transferring the per pupil share of the local current 24
123-expense fund to charter schools. The standardized procedure for transfer of the per pupil share of 25
124-the local current expense fund shall require, to the extent practicable, that the local school 26
125-administrative units make the transfers by electronic transfer. 27
126-…." 28
127-SECTION 1.(g) G.S. 115C-218.123 is amended by adding a new subsection to read: 29
128-"(c) If a school is operating under a charter that allows for a remote academy as part of the 30
129-charter, and the school enrolls or intends to enroll 250 or more students in the remote academy, 31
130-the school may request that the Review Board grant the remote academy portion of the school a 32
131-separate charter by submitting the information listed under subsection (a) of this section with the 33
132-request. Requests submitted pursuant to this section shall be reviewed through an expedited 34
133-process to be established by the Review Board. The Review Board shall not require a planning 35
134-year for remote academies granted a charter pursuant to this section." 36
135-SECTION 1.(h) G.S. 115C-218.125 reads as rewritten: 37
136-"§ 115C-218.125. Evaluation. 38
137-(a) The State Board of Education shall evaluate the success of remote charter academies 39
138-approved under this Part. Success shall be measured by school performance scores and grades, 40
139-retention rates, attendance rates, and, for grades nine through 12, high school completion and 41
140-dropout rates. The Board shall report by November 15 of each year to the Joint Legislative 42
141-Education Oversight Committee on the evaluation of these academies and on any recommended 43
142-statutory changes. 44
143-(b) If a school is operating under a charter that includes in-person instruction and a remote 45
144-charter academy, the remote charter academy shall receive a separate school performance grade 46
145-and be treated as a separate school for the purposes of assessing the performance of the remote 47
146-charter academy pursuant to G.S. 115C-12(9)c1., 115C-83.15, 115C-218.94, and 115C-218.95." 48
147-SECTION 2. This act is effective when it becomes law and applies beginning with 49
148-the 2025-2026 school year. 50
64+(c) North Carolina Office of Charter Schools. – 12
65+… 13
66+(2) Executive Director. – The Executive Director shall report to and serve at the 14
67+pleasure of the Superintendent of Public Instruction Review Board at a salary 15
68+established by the Superintendent Review Board within the funds 16
69+appropriated for this purpose. The duties of the Executive Director shall 17
70+include presenting the recommendations and decisions of the Review Board 18
71+at meetings of the State Board. 19
72+…." 20
73+SECTION 1.(b) G.S. 115C-218.15(c) reads as rewritten: 21
74+"(c) A charter school shall operate under the written charter signed by the State 22
75+Superintendent and the applicant. The terms of the written charter shall be approved by the 23
76+Review Board. A charter school is not required to enter into any other contract. The charter shall 24
77+incorporate the information provided in the application, as modified during the charter approval 25
78+process, and any terms and conditions imposed on the charter school by the Review Board, or if 26
79+the approval is granted through an appeal pursuant to G.S. 115C-218.9, any conditions imposed 27
80+by the State Board of Education. No other terms may be imposed on the charter school as a 28
81+condition for receipt of local funds." 29
82+SECTION 1.(c) G.S. 115C-218.85 is amended by adding a new subsection to read: 30
83+"(d) Notwithstanding G.S. 116-11(10a) or any other provision of law to the contrary, a 31
84+charter school shall not be required to list class rank on a student's official transcript or record." 32
85+SECTION 1.(d) G.S. 115C-218.90(a) is amended by adding a new subdivision to 33
86+read: 34
87+"(7) A charter school may develop and use any evaluation for conducting 35
88+evaluation of teachers provided that it includes standards and criteria similar 36
89+to those used in the North Carolina Professional Teaching Standards and 37
90+North Carolina Teacher Evaluation Process, or such other evaluation standard 38
91+and process required to be used by local school administrative units." 39
92+SECTION 1.(e) G.S. 115C-218.94 is amended by adding a new subsection to read: 40
93+"(c) The Review Board shall require charter schools that are identified as low-performing 41
94+or continually low-performing to prepare and report on plans to improve the performance of the 42
95+school. The requirements of G.S. 115C-105.27 shall not apply to charter schools." 43
96+SECTION 1.(f) G.S. 115C-218.105 reads as rewritten: 44
97+"§ 115C-218.105. State and local funds for a charter school. 45
98+… 46
99+(a2) The State Board shall may withhold or reduce distribution of funds to a charter school 47
100+if any of the following applies: 48
101+(1) The change in funding is due to an annual adjustment based on enrollment or 49
102+is a general adjustment to allocations that is not specific to the charter or 50
103+actions of that charter school. 51 General Assembly Of North Carolina Session 2025
104+DRH50023-NH-77C Page 3
105+(2) The Review Board notifies the State Board that the charter school has 1
106+materially violated a term of its charter, has violated a State statute or federal 2
107+law, or has had its charter terminated or nonrenewed. 3
108+(3) The Superintendent of Public Instruction Review Board notifies the State 4
109+Board that the charter school has failed to meet generally accepted standards 5
110+of fiscal management or has violated a State or federal requirement for receipt 6
111+of funds. 7
112+… 8
113+(c2) The Superintendent of Public Instruction Review Board shall, in consultation with 9
114+charter schools and local school administrative units, create a standardized enrollment 10
115+verification and transfer request document that each charter school shall use to request the per 11
116+pupil share of the local current expense fund from the local school administrative units. Charter 12
117+schools shall only be required to list the name, age, grade, address, date of charter enrollment, 13
118+date of charter withdrawal, district of residence, and student identification number of each student 14
119+as provided to the charter school by the student's parent or guardian in the enrollment verification 15
120+and transfer request document that the charter school submits to the local school administrative 16
121+units. A charter school, in its discretion, may take further steps to confirm the student's residence 17
122+in a particular local school administrative unit. 18
123+(c3) The Superintendent of Public Instruction Review Board shall, in consultation with 19
124+charter schools and local school administrative units, create a standardized procedure that local 20
125+school administrative units shall use when transferring the per pupil share of the local current 21
126+expense fund to charter schools. The standardized procedure for transfer of the per pupil share of 22
127+the local current expense fund shall require, to the extent practicable, that the local school 23
128+administrative units make the transfers by electronic transfer. 24
129+…." 25
130+SECTION 1.(g) G.S. 115C-218.123 is amended by adding a new subsection to read: 26
131+"(c) If a school is operating under a charter that allows for a remote academy as part of the 27
132+charter, and the school enrolls or intends to enroll 250 or more students in the remote academy, 28
133+the school may request that the Review Board grant the remote academy portion of the school a 29
134+separate charter by submitting the information listed under subsection (a) of this section with the 30
135+request. Requests submitted pursuant to this section shall be reviewed through an expedited 31
136+process to be established by the Review Board. The Review Board shall not require a planning 32
137+year for remote academies granted a charter pursuant to this section." 33
138+SECTION 1.(h) G.S. 115C-218.125 reads as rewritten: 34
139+"§ 115C-218.125. Evaluation. 35
140+(a) The State Board of Education shall evaluate the success of remote charter academies 36
141+approved under this Part. Success shall be measured by school performance scores and grades, 37
142+retention rates, attendance rates, and, for grades nine through 12, high school completion and 38
143+dropout rates. The Board shall report by November 15 of each year to the Joint Legislative 39
144+Education Oversight Committee on the evaluation of these academies and on any recommended 40
145+statutory changes. 41
146+(b) If a school is operating under a charter that includes in-person instruction and a remote 42
147+charter academy, the remote charter academy shall receive a separate school performance grade 43
148+and be treated as a separate school for the purposes of assessing the performance of the remote 44
149+charter academy pursuant to G.S. 115C-12(9)c1., 115C-83.15, 115C-218.94, and 115C-218.95." 45
150+SECTION 2. This act is effective when it becomes law and applies beginning with 46
151+the 2025-2026 school year. 47