GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 2 SENATE BILL 449 Education/Higher Education Committee Substitute Adopted 4/9/25 Short Title: Fiscal Responsibility and K-20 Tech Planning. (Public) Sponsors: Referred to: March 25, 2025 *S449 -v-2* A BILL TO BE ENTITLED 1 AN ACT TO REQUIRE AL L PUBLIC SCHOOLS, CO MMUNITY COLLEGES, AN D 2 CONSTITUENT INSTITUTIONS OF THE UNIVERSITY OF NORTH CAROLINA TO 3 EVALUATE CERTAIN CON SIDERATIONS ON TECHN OLOGY COSTS AND TO 4 REQUIRE PUBLIC SCHOOLS TO REPORT ON BREAK/FIX RATE. 5 The General Assembly of North Carolina enacts: 6 SECTION 1.(a) Part 3A of Article 8 of Chapter 115C of the General Statutes is 7 amended by adding the following new sections to read: 8 "§ 115C-102.10. Technology costs considerations. 9 The State Board of Education shall adopt rules requiring all public school units to evaluate 10 the following when acquiring technology, computer hardware, and software: 11 (1) The long-term cost of ownership, including costs of repairing the technology, 12 computer hardware, or software. 13 (2) Any flexibility for innovation during the life of the technology, computer 14 hardware, or software. 15 (3) Any anticipated resale or salvage value at the end of the target life cycle for 16 the technology, computer hardware, or software based on the average resale 17 or salvage value of similar technology, computer hardware, or software as a 18 percentage of the initial cost of purchase. 19 "§ 115C-102.11. Break/fix rate reporting requirement. 20 (a) Definitions. – The following definitions apply in this section: 21 (1) Break/fix rate. – The percentage obtained by dividing the number of school 22 technology devices reported as malfunctioning or needing repair due to 23 physical damage, hardware failure, or other breakage incidents prior to the 24 stated life cycle period, not covered by insurance or a policy plan period, by 25 the total number of school technology devices in operation during that period. 26 (2) School technology device. – Any electronic or computerized equipment 27 provided for educational purposes in a public school unit, including 28 computers, tablets, interactive whiteboards, and similar devices or anything 29 considered a digital device for purposes of the digital learning dashboard 30 pursuant to G.S. 115C-102.9. 31 (b) Each governing body of a public school unit shall submit a report on the following 32 information to the State Board of Education by August 15 annually: 33 (1) The break/fix rate of the school technology devices in the public school unit 34 for the previous school year. 35 General Assembly Of North Carolina Session 2025 Page 2 Senate Bill 449-Second Edition (2) The total number of school technology devices currently in operation in the 1 public school unit. 2 (3) The total number of school technology devices in the public school unit 3 requiring repair that (i) underwent repair or (ii) were no longer in service 4 during the previous school year. 5 (4) The total amount of funds spent to repair or replace school technology devices 6 during the previous school year. 7 (c) The State Board of Education shall report to the Joint Legislative Education Oversight 8 Committee by November 15 annually on the break/fix rate of school technology devices across 9 all public school units based on the reports submitted by the governing bodies in accordance with 10 subsection (b) of this section. This report shall include a summary of the data reported by each 11 governing body and recommendations to reduce break/fix rates in the future." 12 SECTION 1.(b) The first reports from governing bodies of public school units 13 required by G.S. 115C-102.11(b), as enacted by this section, shall be submitted no later than 14 August 15, 2026, based on data collected during the 2025-2026 school year. The first report from 15 the State Board of Education required by G.S. 115C-102.11(c), as enacted by this section, shall 16 be submitted no later than November 15, 2026. 17 SECTION 2.(a) G.S. 115C-12 is amended by adding a new subdivision to read: 18 "(50) To Require Evaluation of Technology Costs. – The State Board shall adopt 19 rules governing public school units evaluating technology costs in accordance 20 with G.S. 115C-102.10." 21 SECTION 2.(b) G.S. 115C-47 is amended by adding the following new subdivisions 22 to read: 23 "(70) To Evaluate Technology Costs. – A local board of education shall adopt a 24 policy requiring the evaluation of technology costs considerations adopted by 25 the State Board of Education pursuant to G.S. 115C-102.10. 26 (71) To Report on Break/Fix Rate. – A local board of education shall report 27 annually to the State Board of Education on the break/fix rate of school 28 technology devices in accordance with G.S. 115C-102.11." 29 SECTION 2.(c) G.S. 115C-150.12C is amended by adding the following new 30 subdivisions to read: 31 "(37) Evaluate technology costs. – The board of trustees shall adopt a policy 32 requiring the evaluation of technology costs considerations adopted by the 33 State Board of Education pursuant to G.S. 115C-102.10. 34 (38) Report on break/fix rate. – The board of trustees shall report annually to the 35 State Board of Education on the break/fix rate of school technology devices 36 used in the school in accordance with G.S. 115C-102.11." 37 SECTION 2.(d) Part 2 of Article 14A of Chapter 115C of the General Statutes is 38 amended by adding a new section to read: 39 "§ 115C-218.33. School technology. 40 (a) A charter school shall adopt a policy requiring the evaluation of technology costs 41 considerations adopted by the State Board of Education pursuant to G.S. 115C-102.10. 42 (b) A charter school shall report annually to the State Board of Education on the break/fix 43 rate of school technology devices used in the school in accordance with G.S. 115C-102.11." 44 SECTION 2.(e) G.S. 115C-238.66 is amended by adding the following new 45 subdivisions to read: 46 "(18a) The board of directors shall adopt a policy requiring the evaluation of 47 technology costs considerations adopted by the State Board of Education 48 pursuant to G.S. 115C-102.10. 49 General Assembly Of North Carolina Session 2025 Senate Bill 449-Second Edition Page 3 (18b) The board of directors shall report annually to the State Board of Education 1 on the break/fix rate of technology used in the school in accordance with 2 G.S. 115C-102.11." 3 SECTION 2.(f) G.S. 116-239.8(b) is amended by adding the following new 4 subdivisions to read: 5 "(21a) Evaluate technology costs. – The chancellor shall adopt a policy requiring the 6 evaluation of technology costs considerations adopted by the State Board of 7 Education pursuant to G.S. 115C-102.10. 8 (21b) Report on break/fix rate. – The chancellor shall report annually to the State 9 Board of Education on the break/fix rate of technology used in the school in 10 accordance with G.S. 115C-102.11." 11 SECTION 3. Chapter 115D of the General Statutes is amended by adding a new 12 section to read: 13 "§ 115D-9.40. Evaluation of technology costs. 14 The State Board of Community Colleges shall adopt a policy that requires all community 15 colleges to evaluate the following when acquiring technology, computer hardware, and software: 16 (1) The long-term cost of ownership, including costs of repairing the technology, 17 computer hardware, or software. 18 (2) Any flexibility for innovation during the life of the technology, computer 19 hardware, or software. 20 (3) Any anticipated resale or salvage value at the end of the target life cycle for 21 the technology, computer hardware, or software based on the average resale 22 or salvage value of similar technology, computer hardware, or software as a 23 percentage of the initial cost of purchase." 24 SECTION 4. G.S. 116-11 is amended by adding a new subdivision to read: 25 "(9c) The Board shall adopt a policy that requires all constituent institutions to 26 evaluate the following when acquiring technology, computer hardware, and 27 software: 28 a. The long-term cost of ownership, including costs of repairing the 29 technology, computer hardware, or software. 30 b. Any flexibility for innovation during the life of the technology, 31 computer hardware, or software. 32 c. Any anticipated resale or salvage value at the end of the target life 33 cycle for the technology, computer hardware, or software based on the 34 average resale or salvage value of similar technology, computer 35 hardware, or software as a percentage of the initial cost of purchase." 36 SECTION 5. This act is effective when it becomes law and applies beginning with 37 the 2025-2026 academic year. 38