GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 351*

Short Title:  Excellent Schools Act.	(Public)

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Sponsors: Representatives Brubaker, Arnold, Rogers, Preston, Russell, Shubert, Grady; Adams, Aldridge, Alexander, Allred, Baddour, Barbee, Beall, Bonner, Bowie, Boyd-McIntyre, Braswell, Brawley, Brown, Buchanan, Cansler, Church, Cole, Crawford, Culp, Culpepper, Cunningham, Dedmon, Dickson, Dockham, Easterling, Eddins, Fitch, Fox, Gamble, Gardner, Goodwin, Gulley, Hackney, Hall, Hardaway, Hensley, Hiatt, Hightower, Hill, H. Hunter, R. Hunter, Hurley, Insko, Ives, Jarrell, Jeffus, Justus, Luebke, McAllister, McComas, McCombs, McCrary, McMahan, Mercer, Michaux, Miller, Miner, Mitchell, Moore, Mosley, Nesbitt, Nye, Oldham, Owens, Ramsey, Rayfield, Redwine, Saunders, Sexton, Sherrill, Smith, Sutton, Thompson, Tolson, Wainwright, Warner, Warwick, Wilkins, G. Wilson, Womble, and Yongue.

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Referred to:  Education, if favorable, Appropriations.

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February 27, 1997

A BILL TO BE ENTITLED
AN ACT TO ENACT THE EXCELLENT SCHOOLS ACT.
The General Assembly of North Carolina enacts:
Section 1.  This act shall be known as "The Excellent Schools Act".

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An outline of the provisions of the act follows this section.  The outline shows the heading "CONTENTS/INDEX”and it lists by general category the descriptive captions for the various sections and groups of sections that make up the act.  This outline is designed for reference only, and it in no way limits, defines, or prescribes the scope or application of the text of the act.

CONTENTS/INDEX
I.	EFFORTS TO RAISE STUDENT PERFORMANCE STANDARDS
Section 2.
II.	RIGOROUS STANDARDS FOR ENTERING THE TEACHING PROFESSION
A.	ENHANCED STANDARDS FOR TEACHER PREPARATION PROGRAMS
Section 3.
B.	ENHANCED INITIAL CERTIFICATION REQUIREMENTS
Section 4.
C.	REPORT ON ENHANCEMENT OF STANDARDS
Section 5.
III.	RIGOROUS STANDARDS FOR CONTINUING CERTIFICATION
A.	AWARD OF CONTINUING CERTIFICATION DELAYED ONE YEAR
Section 6.
B.	ENHANCED STANDARDS FOR CONTINUING CERTIFICATION
Section 7.
IV.	RIGOROUS STANDARDS, EVALUATION, AND SUPPORT BEFORE CAREER STATUS IS CONSIDERED
A.	MENTORS PROVIDED FOR ALL BEGINNING TEACHERS
Section 8.
B.	RIGOROUS AND MORE FREQUENT EVALUATIONS BY WELL-TRAINED EVALUATORS BEFORE CAREER STATUS IS CONSIDERED
Section 9.
C.	CAREER STATUS DECISION TO BE MADE ONE YEAR AFTER CONTINUING CERTIFICATION AWARDED
Section 10.
V.	ADDITIONAL PROFESSIONAL DEVELOPMENT OPPORTUNITIES AND TOUGHER STANDARDS FOR TEACHERS WITH CAREER STATUS
A.	MEANINGFUL AND CONTINUED PROFESSIONAL DEVELOPMENT FOR TEACHERS
Section 11.
B.	TENURE STREAMLINED TO PROVIDE A FAIR AND EFFICIENT PROCESS FOR REMOVING POOR TEACHERS FROM THE CLASSROOM
Section 12.
C.	STUDIES ON MAKING RENEWAL OF TEACHER CERTIFICATES MORE RIGOROUS
Section 13.
Section 14.
VI.	A PLAN TO ATTRACT AND RETAIN HIGH QUALITY TEACHERS – HIGHER STARTING SALARY, FEWER STEPS IN SALARY SCHEDULE, SIGNIFICANT BUMPS IN THE SALARY SCHEDULE AT YEARS 3, 4, AND 8, DEFERRED BONUS SET ASIDE AT YEAR 8 AND PAID AT YEAR 13
Section 15.
VII.	PAY FOR EXEMPLARY PERFORMANCE/SPECIAL ASSIGNMENTS
A.	DEFINITION OF "MASTERS/ADVANCED COMPETENCIES”BY THE STATE BOARD OF EDUCATION 
Section 16.
B.	BONUS FOR "MASTERS/ADVANCED COMPETENCIES”AND FOR NBPTS CERTIFICATION
Section 17.
C. PARTICIPATION FEE AND PAID LEAVE FOR NBPTS PROGRAM
Section 18.
D. SCHOOL-BASED INCENTIVE AWARDS UNDER THE ABC'S PROGRAM
Section 19.
E. EXTRA PAY FOR MENTOR TEACHERS
Section 20.
F.	EXTRA PAY FOR NEW TEACHER DEVELOPMENT
Section 21.
G.	EXTRA PAY FOR PROFESSIONAL DEVELOPMENT
Section 22. 
H.	EXTRA PAY FOR EXTRA DAYS
Section 23.
I.	ADDITIONAL PAY FOR TEACHERS WITH ADDITIONAL RESPONSIBILITIES
Section 24.
VIII.   FUNDS FOR COMPUTER SYSTEMS
Section 25.
Section 26.
IX.   MISCELLANEOUS PROVISIONS
A.	CAPTIONS ARE FOR REFERENCE ONLY AND DO NOT LIMIT TEXT
Section 27. 
B.	NO APPROPRIATIONS REQUIRED BY ACT
Section 28.
C.	EFFECTIVE DATES
Section 29. 

I.	EFFORTS TO RAISE STUDENT PERFORMANCE STANDARDS
Section 2.  The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to September 1, 1997, and prior to February 1, 1998, on its comprehensive plan to raise student performance standards in reading, writing, and mathematics.  The reports shall include comparisons of current standards and the State Board's plan with the student performance expectations outlined in the ABC's initiative, the standard course of study, the work of the North Carolina Education Standards and Accountability Commission and the work of the National Assessment of Educational Progress (NAEP).

II.  RIGOROUS STANDARDS FOR ENTERING THE TEACHING PROFESSION

A.	ENHANCED STANDARDS FOR TEACHER PREPARATION PROGRAMS
Section 3. G.S. 115C-296(b) reads as rewritten:
"(b)	It is the policy of the State of North Carolina to maintain the highest quality teacher education programs and school administrator programs in order to enhance the competence of professional personnel certified in North Carolina.  To the end that teacher preparation programs are upgraded to reflect a more rigorous course of study, the State Board of Education, as lead agency in coordination and cooperation with the University Board of Governors, the Board of Community Colleges and such other public and private agencies as are necessary, shall continue to refine the several certification requirements, standards for approval of institutions of teacher education, standards for institution-based innovative and experimental programs, standards for implementing consortium-based teacher education, and standards for improved efficiencies in the administration of the approved programs.  The State Board of Education, as lead agency in coordination and cooperation with The University Board of Governors, the Board of Community Colleges, and such other public and private agencies as are necessary, and in consultation with the North Carolina Professional Teaching Standards Commission, shall also continue to raise the standard for entry into institutions of teacher education and lengthen and enhance the internship period required of students in institutions of teacher education.
The standards for approval of institutions of teacher education shall require that teacher education programs for students who do not major in special education include courses in the identification and education of children with learning disabilities.  The State Board of Education shall incorporate the criteria developed in accordance with G.S. 116-74.21 for assessing proposals under the School Administrator Training Program into its school administrator program approval standards."

B.	ENHANCED INITIAL CERTIFICATION REQUIREMENTS
Section 4. G.S. 115C-296(a) reads as rewritten:
"(a)	The State Board of Education shall have entire control of certifying all applicants for teaching positions in all public elementary and high schools of North Carolina; and it shall prescribe the rules and regulations for the renewal and extension of all certificates and shall determine and fix the salary for each grade and type of certificate which it authorizes: Provided, that the State Board of Education shall require each applicant for an initial bachelors degree or graduate certificate to demonstrate his academic and professional preparation by achieving a prescribed minimum score on a standard examination appropriate and adequate for that purpose.  The General Assembly urges the State Board of Education, in consultation with the North Carolina Professional Teaching Standards Commission, to continue to make the standard examination more rigorous and to raise the prescribed minimum score as necessary to ensure that each applicant has adequate academic and professional preparation to teach."

C.	REPORT ON ENHANCEMENT OF STANDARDS
Section 5.  The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to February 1, 1998, on plans and actions taken pursuant to Sections 3 and 4 of this act to enhance standards for entering the teaching profession and for receiving State Board certification.

III.	RIGOROUS STANDARDS FOR CONTINUING CERTIFICATION
A.	AWARD OF CONTINUING CERTIFICATION DELAYED ONE YEAR
Section 6. (a)	G.S. 115C-296(b), as rewritten by Section 3 of this act, reads as rewritten:
"(b)	It is the policy of the State of North Carolina to maintain the highest quality teacher education programs and school administrator programs in order to enhance the competence of professional personnel certified in North Carolina.  To the end that teacher preparation programs are upgraded to reflect a more rigorous course of study, the State Board of Education, as lead agency in coordination and cooperation with the University Board of Governors, the Board of Community Colleges and such other public and private agencies as are necessary, shall continue to refine the several certification requirements, standards for approval of institutions of teacher education, standards for institution-based innovative and experimental programs, standards for implementing consortium-based teacher education, and standards for improved efficiencies in the administration of the approved programs. The certification program shall provide for initial certification after completion of preservice training, continuing certification after three years of teaching experience, and certificate renewal every five years thereafter.  The State Board of Education, as lead agency in coordination and cooperation with the University Board of Governors, the Board of Community Colleges and such other public and private agencies as are necessary, and in consultation with the North Carolina Professional Teaching Standards Commission, shall also continue to raise the standard for entry into institutions of teacher education and lengthen and enhance the internship period required of students in institutions of teacher education.
The standards for approval of institutions of teacher education shall require that teacher education programs for students who do not major in special education include courses in the identification and education of children with learning disabilities.  The State Board of Education shall incorporate the criteria developed in accordance with G.S. 116-74.21 for assessing proposals under the School Administrator Training Program into its school administrator program approval standards."
(b)	This section applies to teachers who have not received continuing certification prior to January 1, 1999.

B.	ENHANCED STANDARDS FOR CONTINUING CERTIFICATION
Section 7. The State Board of Education, in consultation with the North Carolina Professional Teaching Standards Commission, local boards of education, and the Board of Governors of The University of North Carolina, shall reevaluate and enhance the requirements for continuing certification.  The State Board shall consider modifications to the continuing certification process to align it with State education goals and to make it a performance-based system in which portfolios, videos, and evaluations by National Board Certified or other excellent teachers are considered.  The State Board shall report to the Joint Legislative Education Oversight Committee prior to February 1, 1998, on the results of this study and on any actions taken to make renewal of teacher certificates more rigorous.

IV.	RIGOROUS STANDARDS, EVALUATION, AND SUPPORT BEFORE CAREER STATUS IS CONSIDERED

A.	MENTORS PROVIDED FOR ALL BEGINNING TEACHERS
Section 8.  The State Board of Education shall develop a mentor program that will recognize the achievements of excellent, experienced teachers and will provide each newly certified teacher with a qualified and well-trained mentor.  The State Board shall report to the Joint Legislative Education Oversight Committee prior to February 1, 1998, on its progress in developing this program.

B.	RIGOROUS AND MORE FREQUENT EVALUATIONS BY WELL-TRAINED EVALUATORS BEFORE CAREER STATUS IS CONSIDERED
Section 9. G.S. 115C-326(a) reads as rewritten:
"(a)	The State Board of Education, in consultation with the North Carolina Standards Board for Public School Administration, the North Carolina Professional Teaching Standards Commission, and local boards of education, shall develop uniform performance standards and criteria to be used in evaluating professional public school employees. It shall develop rules to recommend the use of these standards and criteria in the employee evaluation process. The performance standards and criteria may be modified at the discretion of the Board.
The State Board of Education, in collaboration with the Board of Governors of The University of North Carolina and in consultation with the North Carolina Standards Board for Public School Administration, the North Carolina Professional Teaching Standards Commission, and local boards of education shall also develop programs to train administrators and others to improve the evaluation and supervision of professional public school employees.
Local boards of education shall adopt rules to provide for the evaluation of all professional employees defined as teachers in G.S. 115C-325(a)(6). All teachers who have not attained career status shall be evaluated at least three times annually by a qualified administrator or a designee and at least once by a teacher.  All other teachers shall be evaluated annually unless a local board adopts rules that allow specified categories of teachers with career status to be evaluated less frequently. Local boards may also adopt rules requiring the annual evaluation of other school employees not specifically covered in this section. Local boards may develop and use alternative evaluation approaches for teachers provided the evaluations are properly validated. Local boards that do not develop alternative evaluations shall utilize the performance standards and criteria adopted by the State Board of Education, but are not limited to those standards and criteria."

C.	CAREER STATUS DECISION TO BE MADE ONE YEAR AFTER CONTINUING CERTIFICATION AWARDED
Section 10. (a) G.S. 115C-325(c) reads as rewritten:
"(c)	(1)	Election of a Teacher to Career Status. – Except as otherwise provided in subdivision (3) of this subsection, when a teacher will have been employed by a North Carolina public school system for four consecutive years, the board, near the end of the fourth year, shall vote upon his employment for the next school year. The board shall give him written notice of that decision by June 1 of his fourth year of employment. If a majority of the board votes to reemploy the teacher, and if it has notified him of the decision, it may not rescind that action but must proceed under the provisions of this section for the demotion or dismissal of a teacher if it decides to terminate his employment. If a majority of the board votes against reemploying the teacher, he shall not teach beyond the current school term. If the board fails to vote on granting career status but reemploys him for the next year, he automatically becomes a career teacher on the first day of the fifth year of employment.
	A year, for purposes of computing time as a probationary teacher, shall be not less than 120 workdays performed as a full-time, permanent teacher in a normal school year.
(2)	Employment of a Career Teacher. – A teacher who has obtained career status in any North Carolina public school system need not serve another probationary period of more than two years, and may, at the option of the board, be employed immediately as a career teacher. In any event, if the teacher is reemployed for a fourth consecutive school year, he shall automatically become a career teacher. A teacher with career status who resigns and within five years is reemployed by the same local school administrative unit need not serve another probationary period of more than one school year and may, at the option of the board, be reemployed as a career teacher. In any event, if he is reemployed for a second consecutive school year, he shall automatically become a career teacher.
(3)	Ineligible for Career Status. – No employee of a local board of education except a teacher as defined by G.S. 115C-325(a)(6) is eligible to obtain career status or continue in a career status if he no longer performs the responsibilities of a teacher as defined in G.S. 115C-325(a)(6). No person who is working in a principal or supervisor position who did not acquire career status as a school administrator by June 30, 1997, shall have career status as an administrator. Further, no director or assistant principal is eligible to obtain career status as a school administrator unless he or she has already been conferred that status by the local board of education.
(4)	Leave of Absence. – A career teacher who has been granted a leave of absence by a board shall maintain his career status if he returns to his teaching position at the end of the authorized leave."
(b)	This section applies to teachers, as defined in G.S. 115C-325(a)(6), who have not attained career status pursuant to G.S. 115C-325(c) prior to July 1, 1999.

V.	ADDITIONAL PROFESSIONAL DEVELOPMENT OPPORTUNITIES AND TOUGHER STANDARDS FOR TEACHERS WITH CAREER STATUS

A.	MEANINGFUL AND CONTINUED PROFESSIONAL DEVELOPMENT FOR TEACHERS
Section 11.  The State Board of Education, in consultation with the Board of Governors of The University of North Carolina and the North Carolina Professional Teaching Standards Commission, shall study methods for providing meaningful professional development opportunities, which are aligned with State education goals, for each teacher.  The State Board shall report the results of this study to the Joint Legislative Education Oversight Committee prior to February 1, 1998.

B.	TENURE STREAMLINED TO PROVIDE A FAIR AND EFFICIENT PROCESS FOR REMOVING POOR TEACHERS FROM THE CLASSROOM
Section 12.  (a) G.S. 115C-325, as rewritten by Section 10(a) of this act, reads as rewritten:
"§ 115C-325.  System of employment for public school teachers.
(a)	Definition of Terms. – As used in this section unless the context requires otherwise:
(1a)	‘Career Employee' as used in subsections G.S. 115C-325(e) through (l) and (n) means:
a.	An employee who has obtained career status with that local board as a teacher as provided in G.S. 115C-325(c);
b.	An employee who has obtained career status with that local board in an administrative position as provided in G.S. 115C-325(d)(2);
c.	A probationary teacher during the term of the contract as provided in G.S. 115C-325(m); and
d.	A school administrator during the term of a school administrator contract as provided in G.S. 115C-287.1(c).
(1b)	‘Career school administrator' means a school administrator who has obtained career status in an administrative position as provided in G.S. 115C-325(d)(2).
(1c)	‘Career teacher' means a teacher who has obtained career status as provided in G.S. 115C-325(c).
	(3)	‘Day' means calendar day. In computing any period of time, Rule 6 of the North Carolina Rules of Civil Procedure shall apply.
(4)	‘Demote' means to reduce the compensation of a person who is classified or paid by the State Board of Education as a classroom teacher or as a school administrator, or to transfer him to a new position carrying a lower salary. The word ‘demote' does not include a reduction in compensation that results from the elimination of a special duty, such as the duty of an athletic coach, or a choral director.
(4a)	‘Disciplinary suspension' means a final decision to suspend a teacher or school administrator without pay to a maximum of 60 days; provided, however, that a suspension with or without pay pursuant to the provisions of G.S. 115C-325(f)(1) or (f1) shall not be considered a disciplinary suspension.
(5)	‘Probationary teacher' means a certificated person, other than a superintendent, associate superintendent, or assistant superintendent, who has not obtained career-teacher status and whose major responsibility is to teach or to supervise teaching.
(6)	‘Teacher' means a person who holds at least a current, not expired, Class A certificate or a regular, not provisional or expired, vocational certificate issued by the Department of Public Instruction; whose major responsibility is to teach or directly supervise teaching or who is classified by the State Board of Education or is paid as a classroom teacher; and who is employed to fill a full-time, permanent position.
(7)	‘Year' for purposes of computing time as a probationary teacher shall be not less than 120 workdays performed as a teacher in a full-time permanent position in a school year.
(b)	Personnel Files. – The superintendent shall maintain in his office a personnel file for each teacher that contains any complaint, commendation, or suggestion for correction or improvement about the teacher's professional conduct, except that the superintendent may elect not to place in a teacher's file (i) a letter of complaint that contains invalid, irrelevant, outdated, or false information or (ii) a letter of complaint when there is no documentation of an attempt to resolve the issue. The complaint, commendation, or suggestion shall be signed by the person who makes it and shall be placed in the teacher's file only after five days' notice to the teacher. Any denial or explanation relating to such complaint, commendation, or suggestion that the teacher desires to make shall be placed in the file. Any teacher may petition the local board of education to remove any information from his personnel file that he deems invalid, irrelevant, or outdated. The board may order the superintendent to remove said information if it finds the information is invalid, irrelevant, or outdated.
The personnel file shall be open for the teacher's inspection at all reasonable times but shall be open to other persons only in accordance with such rules and regulations as the board adopts. Any preemployment data or other information obtained about a teacher before his employment by the board may be kept in a file separate from his personnel file and need not be made available to him. No data placed in the preemployment file may be introduced as evidence at a hearing on the dismissal or demotion of a teacher, except such data may be used to substantiate G.S. 115C-325(e)(1) g. or o. as grounds for dismissal or demotion.
(c)	(1)	 Election of a Teacher to Career Status. – Except as otherwise provided in subdivision (3) of this subsection, when a teacher will have been employed by a North Carolina public school system for four consecutive years, the board, near the end of the fourth year, shall vote upon his employment for the next school year. The board shall give him written notice of that decision by June 1 of his fourth year of employment. If a majority of the board votes to reemploy the teacher, and if it has notified him of the decision, it may not rescind that action but must proceed under the provisions of this section for the demotion or dismissal of a teacher if it decides to terminate his employment. If a majority of the board votes against reemploying the teacher, he shall not teach beyond the current school term. If the board fails to vote on granting career status but reemploys him for the next year, he automatically becomes a career teacher on the first day of the fifth consecutive year of employment.
		A year, for purposes of computing time as a probationary teacher, shall be not less than 120 workdays performed as a full-time, permanent teacher in a normal school year.
(2)	Employment of a Career Teacher. – A teacher who has obtained career status in any North Carolina public school system need not serve another probationary period of more than two years, and may, at the option of the board, be employed immediately or after one year as a career teacher.  In any event, if the teacher is reemployed for a fourth consecutive school year, he shall automatically become a career teacher.  
(3)	Ineligible for Career Status. – No employee of a local board of education except a teacher as defined by G.S. 115C-325(a)(6) is eligible to obtain career status or continue in a career status as a teacher if he no longer performs the responsibilities of a teacher as defined in G.S. 115C-325(a)(6). No person who is employed as a school administrator as defined in G.S. 115C-287.1(a) who did not acquire career status as a school administrator by June 30, 1997, shall have career status as an administrator. Further, no director or assistant principal is eligible to obtain career status as a school administrator unless he or she has already been conferred that status by the local board of education.
(4)	Leave of Absence. – A career teacher who has been granted a leave of absence by a board shall maintain his career status if he returns to his teaching position at the end of the authorized leave.
(d)	Career Teachers and Career Administrators.
(1)	A career teacher or administrator shall not be subjected to the requirement of annual appointment nor shall he be dismissed, demoted, or employed on a part-time basis without his consent except as provided in subsection (e).
(2)	a.	The provisions of this subdivision do not apply to a person who is ineligible for career status as provided by G.S. 115C-325(c)(3).
b.	Transfer of career administrators. –  A school administrator who acquired career status in an administrative position on or before June 30, 1997, may be transferred from that position to any nonadministrative position so long as the administrator's salary is maintained at the previous salary amount.
c.	Granting of career status in administrative positions.  (Effective until June 30, 1997.)  When a teacher has performed the duties of supervisor or principal for three consecutive years, the board, near the end of the third year, shall vote upon his employment for the next school year. The board shall give him written notice of that decision by June 1 of his third year of employment as a supervisor or principal. If a majority of the board votes to reemploy the teacher as a principal or supervisor, and it has notified him of that decision, it may not rescind that action but must proceed under the provisions of this section. If a majority of the board votes not to reemploy the teacher as a principal or supervisor, he shall retain career status as a teacher if that status was attained prior to assuming the duties of supervisor or principal. A supervisor or principal who has not held that position for three years and whose contract will not be renewed for the next school year shall be notified by June 1 and shall retain career status as a teacher if that status was attained prior to assuming the duties of supervisor or principal.
		A year, for purposes of computing time as a probationary principal or supervisor, shall not be less than 145 workdays performed as a full-time, permanent principal or supervisor in a contract year.
		A principal or supervisor who has obtained career status in that position in any North Carolina public school system may be required by the board of education in another school system to serve an additional three-year probationary period in that position before being eligible for career status. However, he may, at the option of the board of education, be granted career status immediately or after serving a probationary period of one or two additional years. A principal or supervisor with career status who resigns and within five years is reemployed by the same school system need not serve another probationary period in that position of more than two years and may, at the option of the board, be reemployed immediately as a career principal or supervisor or be given career status after only one year. In any event, if he is reemployed for a third consecutive year, he shall automatically become a career principal or supervisor.
(e)	Grounds for Dismissal or Demotion of a Career Employee.
(1)	Grounds. – No career employee shall be dismissed or demoted or employed on a part-time basis except for one or more of the following:
a.	Inadequate performance.
b.	Immorality.
c.	Insubordination.
d.	Neglect of duty.
e.	Physical or mental incapacity.
f.	Habitual or excessive use of alcohol or nonmedical use of a controlled substance as defined in Article 5 of Chapter 90 of the General Statutes.
g.	Conviction of a felony or a crime involving moral turpitude.
h.	Advocating the overthrow of the government of the United States or of the State of North Carolina by force, violence, or other unlawful means.
i.	Failure to fulfill the duties and responsibilities imposed upon teachers or school administrators by the General Statutes of this State.
j.	Failure to comply with such reasonable requirements as the board may prescribe.
k.	Any cause which constitutes grounds for the revocation of the career teacher's teaching certificate or the career school administrator's administrator certificate.
l.	A justifiable decrease in the number of positions due to district reorganization, decreased enrollment, or decreased funding, provided that there is compliance with subdivision (2).
m.	Failure to maintain his certificate in a current status.
n.	Failure to repay money owed to the State in accordance with the provisions of Article 60, Chapter 143 of the General Statutes.
o.	Providing false information or knowingly omitting a material fact on an application for employment or in response to a preemployment inquiry.
(2)	Reduction in Force. – Before recommending to a board the dismissal or demotion of the career employee pursuant to G.S. 115C-325(e)(1)l., the superintendent shall give written notice to the career employee by certified mail or personal delivery of his intention to make such recommendation and shall set forth as part of his recommendation the grounds upon which he believes such dismissal or demotion is justified. The notice shall include a statement to the effect that if the career employee within 15 days after receipt of the notice requests a review, he shall be entitled to have the proposed recommendations of the superintendent reviewed by the board. Within the 15-day period after receipt of the notice, the career employee may file with the superintendent a written request for a hearing before the board within 10 days. If the career employee requests a hearing before the board, the hearing procedures provided in G.S. 115C-325(j) shall be followed. If no request is made within the 15-day period, the superintendent may file his recommendation with the board. If, after considering the recommendation of the superintendent and the evidence adduced at the hearing if there is one, the board concludes that the grounds for the recommendation are true and substantiated by a preponderance of the evidence, the board, if it sees fit, may by resolution order such dismissal. Provisions of this section which permit a hearing by a case manager shall not apply to a dismissal or demotion recommended pursuant to G.S. 115C-325(e)(1)l.
		When a career employee is dismissed pursuant to G.S. 115C-325(e)(1)l. above, his name shall be placed on a list of available career employees to be maintained by the board. Career employees whose names are placed on such a list shall have a priority on all positions in which they acquired career status and  for which they are qualified which become available in that system for the three consecutive years succeeding their dismissal. However, if the local school administrative unit offers the dismissed career employee a position for which he is certified and he refuses it, his name shall be removed from the priority list.
(3)	Inadequate Performance. –  In determining whether the professional performance of a career employee is adequate, consideration shall be given to regular and special evaluation reports prepared in accordance with the published policy of the employing local school administrative unit and to any published standards of performance which shall have been adopted by the board. Failure to notify a career employee of an inadequacy in his performance shall be conclusive evidence of satisfactory performance.
(4)	Three-Year Limitation on Basis of Dismissal or Demotions. –  Dismissal or demotion under subdivision (1) above, paragraphs g. and o. thereof, shall not be based on conduct or actions which occurred more than three years before the written notice of the superintendent's intention to recommend dismissal is mailed to the career employee. The three-year limitation shall not apply to dismissals or demotions pursuant to subdivision (1)b. above when the charge of immorality is based upon a career employee's sexual misconduct toward or sexual harassment of students or staff.
(f)	(1)	Suspension without Pay. – If a superintendent believes that cause exists for dismissing a career employee for any reason specified in G.S. 115C-325(e)(1) and that immediate suspension of the career employee is necessary, the superintendent may suspend him without pay. Before suspending a career employee without pay, the superintendent shall meet with the career employee and give him written notice of the charges against him, an explanation of the bases for the charges, and an opportunity to respond. Within five days after a suspension under this paragraph, the superintendent shall initiate a dismissal as provided in this section. If it is finally determined that no grounds for dismissal or demotion exist, the career employee shall be reinstated immediately, shall be paid for the period of suspension, and all records of the suspension with pay shall be removed from the career teacher's personnel file.
(2)	Disciplinary Suspension Without Pay. – A career employee recommended for suspension without pay pursuant to G.S. 115C-325(a)(4a) may request a hearing before the board. If no request is made within 15 days, the superintendent may file his recommendation with the board. If, after considering the recommendation of the superintendent and the evidence adduced at the hearing if one is held, the board concludes that the grounds for the recommendation are true and substantiated by a preponderance of the evidence, the board, if it sees fit, may by resolution order such suspension. 
a.	Board hearing for disciplinary suspensions for greater than 10 days or for certain types of intentional misconduct. – The procedures for a case manager hearing provided in G.S. 115C-325(j) shall be followed for the board hearing if any of the following circumstances exist:
1.	The recommended disciplinary suspension without pay is for greater than 10 days; or
2.	The disciplinary suspension is for intentional misconduct, such as inappropriate sexual or physical conduct, immorality, insubordination, habitual or excessive alcohol or nonmedical use of a controlled substance, as defined in Article 5 of Chapter 90 of the General Statutes, any cause which constitutes grounds for the revocation of the teacher's license, or providing false information.
b.	Board hearing for disciplinary suspensions of up to 10 days. – The procedures provided in G.S. 115C-325(j2) shall be followed for all disciplinary suspensions up to 10 days that are not for intentional misconduct as specified in G.S. 115C-325(f)(2)a.2.  In addition, the superintendent shall provide the career employee with any documentary evidence to support his recommendation seven days before the hearing, and the career employee shall provide the superintendent with any documentary evidence to rebut the superintendent's recommendation three days before the hearing.
(f1)	Suspension with Pay. – If a superintendent believes that cause may exist for dismissing or demoting a career employee for any reasons specified in G.S. 115C-325(e)(1), but that additional investigation of the facts is necessary and circumstances are such that the career employee should be removed immediately from his duties, the superintendent may suspend the career employee with pay for a reasonable period of time, not to exceed 90 days. The superintendent shall notify the board of education within two days of his action and shall notify the career employee within two days of the action and the reasons for it. If the superintendent has not initiated dismissal or demotion proceedings against the career employee within the 90-day period, the career employee shall be reinstated to his duties immediately and all records of the suspension with pay shall be removed from the career employee's personnel file at his request:  provided, however, if the superintendent and the employee have agreed to extend the 90-day period, the superintendent may initiate  dismissal or demotion proceedings against the career employee at any time during the period of the extension.
	(g)  
			Repealed.
(h)	Procedure for Dismissal or Demotion of Career Employee.
(1)	A career employee may not be dismissed, demoted, or reduced to part-time employment except upon the superintendent's recommendation.
(2)	Before recommending to a board the dismissal or demotion of the career employee, the superintendent shall give written notice to the career employee by certified mail or personal delivery of his intention to make such recommendation and shall set forth as part of his recommendation the grounds upon which he believes such dismissal is justified. The superintendent also shall meet with the career employee and give him written notice of the charges against him, an explanation of the basis for the charges, and an opportunity to respond if he has not done so pursuant to G.S. 115C-325(f)(1).  The notice shall include a statement to the effect that if the career employee within 15 days after the date of receipt of the notice requests a review, he shall be entitled to have the grounds for the proposed recommendations of the superintendent reviewed by a case manager. A copy of G.S. 115C-325 and a current list of case managers shall also be sent to the career employee. If the career employee does not request a hearing with a case manager within the 15 days provided, the superintendent may submit his recommendation to the board.
(3)	Within the 15-day period after receipt of the notice, the career employee may file with the superintendent a written request for either (i) a hearing on the grounds for the superintendent's proposed recommendation by a case manager or (ii) a hearing within 10 days before the board on the superintendent's recommendation. If the career employee requests an immediate hearing before the board, he forfeits his right to a hearing by a case manager. If no request is made within that period, the superintendent may file his recommendation with the board. The board, if it sees fit, may by resolution (i) reject the superintendent's decision or (ii) accept or modify it and dismiss, demote, reinstate, or suspend the employee without pay. If a request for review is made, the superintendent shall not file his recommendation for dismissal with the board until a report of the case manager is filed with the superintendent.
(4)	Repealed.
(5)	If the career employee elects to request a hearing by a case manager, the career employee and superintendent shall each have the right to eliminate up to one-third of the names on the approved list of case managers.  The career employee shall specify to the Superintendent of Public Instruction those case managers who are not acceptable in his request for a review of the superintendent's proposed recommendation provided for in G.S. 115C-325(h)(3).  The superintendent and career employee may jointly select a person to serve as case manager.  Such person need not be on the master list of case managers maintained by the Superintendent of Public Instruction.
(6)	If a career employee requests a review by a case manager, the superintendent shall notify the Superintendent of Public Instruction within five days of receipt of such request.  The notice shall contain a list of those case managers eliminated from the master list by the career employee and the superintendent and the name of a person, if any, jointly selected.  Failure to exercise the right to eliminate names from the master list shall constitute a waiver of that right.
(7)	The Superintendent of Public Instruction shall select a case manager within seven days of notice from the superintendent.  The Superintendent of Public Instruction shall designate the person jointly selected by the parties to serve as case manager provided such person agrees to serve as case manager and can meet the requirements for time frames for the hearing and report as provided in G.S. 115C-325(i1)(1).  If a case manager was not jointly selected or if the case manager is not available, the Superintendent of Public Instruction shall select a case manager from the master list.  No person eliminated by the career employee or superintendent shall be designated case manager.
(8)	The superintendent and career employee shall provide each other with copies of all documents submitted to the Superintendent of Public Instruction or to the designated case manager.
(h1)	Case Managers; Qualifications; Training; Compensation.
(1)	Each year the Superintendent of Public Instruction shall select and maintain a master list of no more than 40 qualified case managers.
(2)	Case managers shall be selected from persons who are certified as North Carolina Superior Court mediators, as an arbitrator by the American Arbitration Association, or comparable certification in alternative dispute resolution, and who have completed a special training course for case managers approved by the State Board of Education.
(3)	The compensation for a case manager shall be comparable to that paid for certified North Carolina Superior Court mediators.  The compensation shall be paid by the State Board of Education.
(i)	
						Repealed.
(i1)	Report of Case Manager; Superintendent's Recommendation.
(1)	The case manager shall complete the hearing held in accordance with G.S. 115C-325(j) and prepare the report within 20 days from the time of the designation, except in cases in which the case manager finds that justice requires that a greater time be spent in connection with the investigation and the preparation of such report, and reports that finding to the superintendent and the career employee:  Provided, that such extension does not exceed 10 days.
(2)	The case manager shall make all necessary findings of fact, based upon the preponderance of the evidence, on all issues related to each and every ground for dismissal and on all relevant matters related to the question of whether the superintendent's recommendation is justified.  The case manager also shall make a recommendation as to whether the findings of fact substantiate the superintendent's grounds for dismissal.
(3)	Within five days after the superintendent receives the report of the case manager, the superintendent shall decide whether or not to submit a written recommendation for dismissal to the board or to drop the charges against the career employee and shall notify the career employee, in writing, of the decision.
(j)	Hearing by a Case Manager. – The following provisions shall be applicable to a hearing conducted by the case manager.
(1)	The hearing shall be private.
(2)	The hearing shall be conducted in accordance with reasonable rules and regulations adopted by the State Board of Education to govern such hearings.
(3)	At the hearing the career employee and the superintendent shall have the right to be present and to be heard, to be represented by counsel and to present through witnesses any competent testimony relevant to the issue of whether grounds for dismissal or demotion exist or whether the procedures set forth in G.S. 115C-325 have been followed.
(4)	Rules of evidence shall not apply to a hearing conducted pursuant to this act and the case manager may give probative effect to evidence that is of a kind commonly relied on by reasonably prudent persons in the conduct of serious affairs.
(5)	At least 10 days before the hearing, the superintendent shall provide to the career employee a list of witnesses the superintendent intends to present, a brief statement of the nature of the testimony of each witness and a copy of any documentary evidence he intends to present. At least six days before the hearing, the career employee shall provide to the superintendent a list of witnesses the career employee intends to present, a brief statement of the nature of the testimony of each witness and a copy of any documentary evidence he intends to present. Additional witnesses or documentary evidence may not be presented except upon consent of both parties or upon a majority vote of the board or panel.
(6)	The case manager shall be empowered to subpoena and swear witnesses and to require them to give testimony and to produce records and documents relevant to the grounds for dismissal.
(7)	The case manager shall decide all procedural issues necessary for a fair and efficient hearing, including limiting cumulative evidence.
(8)	The superintendent shall provide for making a transcript of the hearing.  If the career employee contemplates a hearing before the board or on appeal of the board's decision to a court of law, the career employee may request and shall receive at no charge a transcript of the proceedings.
(j1)	Board Determination.
(1)	Within five days after receiving the superintendent's notice of his intent to recommend the career employee's dismissal to the board, the career employee shall decide whether to request a hearing before the board and shall notify the superintendent, in writing, of the decision.  If the career employee requests a hearing before the board, the superintendent shall submit his written recommendation to the board with a copy to the career employee within five days after receiving the career employee's request.  The superintendent's recommendation shall state the grounds for the recommendation and shall be accompanied by a copy of the report of the case manager.
(2)	Upon request by the career employee or superintendent, or by majority vote of the board, the board shall request the case manager to appear at the board hearing in the event that a critical factual issue in the record of the hearing was not addressed in the case manager's findings of fact.  A request by the career employee must be made at the time the request for a hearing before the board is made.  The superintendent shall submit such request or the superintendent's request to the board when the superintendent submits the recommendation.
(3)	Within seven days after receiving the superintendent's recommendation and before taking any formal action, the board shall set a time and place for the hearing and notify the career employee by certified mail of the date, time, and place of the hearing.  The time specified shall not be less than seven nor more than 20 days after the board has notified the career employee.  If the career employee did not request a hearing, the board may, by resolution, reject the superintendent's decision, or accept or modify the decision and dismiss, demote, reinstate, or suspend the career employee without pay.  If the career employee can show that his request for a hearing was postmarked within the time provided, his right to a hearing is not forfeited.
(4)	If requested, a hearing shall be conducted in accordance with G.S. 115C-325(j2).
(5)	The board shall make a determination and may (i) reject the superintendent's recommendation or (ii) accept or modify the recommendation and dismiss, demote, reinstate, or suspend the employee without pay.
(6)	Within five days following the hearing, the board shall send a written copy of its findings and order to the career employee and superintendent.
(j2)	Board Hearing. – The following procedures shall be applicable to a hearing conducted by the board.
(1)	The hearing shall be private.
(2)	The board shall receive the following:
a.	The whole record from any hearing held by the case manager, including a transcript of the hearing, as well as any other records, exhibits, and documentary evidence submitted to the case manager at the hearing;
b.	If a hearing was held, the case manager's findings of fact;
c.	If a hearing was held, the case manager's recommendation as to whether grounds in G.S. 115C-325(e) submitted by the superintendent are substantiated;
d.	The superintendent's recommendation and the grounds for the recommendation; and
e.	The superintendent and career employee also may submit a written statement not less than three days prior to the hearing.
(3)	The superintendent and career employee shall be permitted to make oral arguments to the board based on the record of the hearing.
(4)	No new evidence may be presented at the review except upon a finding by the board that the new evidence is critical to the matter at issue and the person making the request could not, with reasonable diligence, have discovered and produced the evidence at the hearing before the case manager.
(5)	The board shall accept the case manager's findings of fact unless a majority of the board determines that the findings of fact are not supported by substantial evidence when reviewing the record as a whole.  In such an event, the board shall make alternative findings of fact.  If a majority of the board determines that the case manager did not address a critical factual issue, the board may request the case manager to address the issue at the board hearing if the case manager is present.  Alternatively, the board may remand the findings of fact to the case manager to complete the report to the board.  If the case manager does not submit the report within 10 days upon receipt of the board's request, the board may establish its own findings of fact on the factual issues not addressed by the case manager based upon substantial evidence when reviewing substantial evidence when reviewing the record as a whole.
(6)	The board need not provide a transcript of the hearing.  If the board elects to make a transcript and if the career employee contemplates an appeal to a court of law, the career employee may request and shall receive at no charge a transcript of the proceedings.  Nothing in this provision shall prevent the career employee from having the hearing transcribed by a court reporter at the employee's cost.
(k)	
		Repealed.
(l)	
					Repealed.
(m)	Probationary Teacher.
(1)	The board of any local school administrative unit may not discharge a probationary teacher during the school year except for the reasons for and by the procedures by which a career teacher may be dismissed as set forth in subsections (e), (f), (f1), and (h) to (l) above.
(2)	The board, upon recommendation of the superintendent, may refuse to renew the contract of any probationary teacher or to reemploy any teacher who is not under contract for any cause it deems sufficient: Provided, however, that the cause may not be arbitrary, capricious, discriminatory or for personal or political reasons.
(n)	(See note) Appeal. – Any career employee who has been dismissed or demoted pursuant to G.S. 115C-325(e)(2), or pursuant to subsections (h), (k) or (l) of this section, or who has been suspended without pay pursuant to G.S. 115C-325(a)(4), or any school administrator whose contract is not renewed in accordance with G.S. 115C-287.1, shall have the right to appeal from the decision of the board to the superior court for the superior court district or set of districts as defined in G.S. 7A-41.1 in which the career employee is employed. This appeal shall be filed within a period of 30 days after notification of the decision of the board. The cost of preparing the transcript shall be borne by the board. A career employee who has been demoted or dismissed, or a school administrator whose contract is not renewed, who has not requested a hearing before the board of education pursuant to this section shall not be entitled to judicial review of the board's action.
(o)	Resignation; Nonrenewal of Contract. – A teacher, career or probationary, should not resign without the consent of the superintendent unless he has given at least 30 days' notice. If the teacher does resign without giving at least 30 days' notice, the board may request that the State Board of Education revoke the teacher's certificate for the remainder of that school year. A copy of the request shall be placed in the teacher's personnel file.
A probationary teacher whose contract will not be renewed for the next school year shall be notified of this fact by June 1.
(p)	Section Applicable to Certain Institutions. – Notwithstanding any law or regulation to the contrary, this section shall apply to all persons employed in teaching and related educational classes in the schools and institutions of the Departments of Human Resources and Correction regardless of the age of the students.
(q)	Procedure for Dismissal of School Administrators and Teachers Employed in Low-Performing Schools.
(1)	Notwithstanding any other provision of this section or any other law, the State Board:
a.	Shall suspend with pay a principal who has been assigned to a school for more than two years before the State Board identifies that school as low-performing and assigns an assistance team to that school under Article 8B of this Chapter; and
b.	May suspend with pay a principal who has been assigned to a school for no more than two years before the State Board identifies that school as low-performing and assigns an assistance team to that school under Article 8B of this Chapter.
	These principals shall be suspended with pay pending a hearing before a panel of three members of the State Board. The purpose of this hearing, which shall be held within 60 days after the principal is suspended, is to determine whether the principal shall be dismissed. The panel shall order the dismissal of the principal, at which time the period of suspension with pay shall expire, unless the panel makes a public determination that the principal has established that the factors that led to the identification of the school as low-performing were not due to the inadequate performance of the principal. The State Board shall adopt procedures to ensure that due process rights are afforded to principals under this subsection. Decisions of the panel may be appealed on the record to the State Board, with further right of judicial review under Chapter 150B of the General Statutes.
(2)	Notwithstanding any other provision of this section or any other law, this subdivision shall govern the State Board's dismissal of teachers, assistant principals, directors, and supervisors assigned to schools that the State Board has identified as low-performing and to which the State Board has assigned an assistance team under Article 8B of this Chapter. The State Board shall dismiss a teacher, assistant principal, director, or supervisor when the State Board receives two consecutive evaluations that include written findings and recommendations regarding that person's inadequate performance from the assistance team. These findings and recommendations shall be substantial evidence of the inadequate performance of the teacher or school administrator.
		The State Board may dismiss a teacher, assistant principal, director, or supervisor when:
a.	The State Board determines that the school has failed to make satisfactory improvement after the State Board assigned an assistance team to that school under G.S. 115C-105.38; and
b.	That assistance team makes the recommendation to dismiss the teacher, assistant principal, director, or supervisor for one or more grounds established in G.S. 115C-325(e)(1) for dismissal or demotion of a career teacher.
	A teacher, assistant principal, director, or supervisor may request a hearing before a panel of three members of the State Board within 30 days of any dismissal under this subdivision. The State Board shall adopt procedures to ensure that due process rights are afforded to persons recommended for dismissal under this subdivision. Decisions of the panel may be appealed on the record to the State Board, with further right of judicial review under Chapter 150B of the General Statutes.
(3)	The State Board of Education or a local board may terminate the contract of a school administrator dismissed under this subsection. Nothing in this subsection shall prevent a local board from refusing to renew the contract of any person employed in a school identified as low-performing under G.S. 115C-105.37.
(4)	Neither party to a school administrator contract is entitled to damages under this subsection.
(5)	The State Board shall have the right to subpoena witnesses and documents on behalf of any party to the proceedings under this subsection."
(b) This section applies to proceedings initiated after January 1, 1998.

C.	STUDIES ON MAKING RENEWAL OF TEACHER CERTIFICATES MORE RIGOROUS
Section 13. The State Board of Education, in consultation with the North Carolina Professional Teaching Standards Commission, local boards of education, and the Board of Governors of The University of North Carolina, shall reevaluate and enhance  the requirements for renewal of teacher certificates.  The State Board shall consider modifications in the certificate renewal process to align the process with State education goals and to make it a mechanism for teachers to renew continually their knowledge and professional skills.  The State Board shall report the results of this study and any actions taken to make renewal of teacher certificates more rigorous to the Joint Legislative Education Oversight Committee prior to February 1, 1998.
Section 14. The North Carolina Standards Board for Public School Administration, in consultation with the State Board of Education,  local boards of education, and the Board of Governors of The University of North Carolina, shall recommend ways to modify the administrator recertification process to ensure that all schools have well-qualified administrators. The Standards Board shall report the results of this study to the Joint Legislative Education Oversight Committee prior to February 1, 1998.

VI.	A PLAN TO ATTRACT AND RETAIN HIGH QUALITY TEACHERS – HIGHER STARTING SALARY, SIGNIFICANT BUMPS IN THE SALARY SCHEDULE AT YEARS 3, 4, AND 8, DEFERRED BONUS SET ASIDE AT YEAR 8 AND PAID AT YEAR 13, FEWER STEPS IN SALARY SCHEDULE, ENHANCED LONGEVITY PAY.
Section 15. (a)	It is the goal of the General Assembly to increase teacher salaries over the next four years so as to attract and retain excellent teachers in the public schools;  therefore, it is the goal of the General Assembly to implement, over the upcoming four fiscal years, a plan for increasing the starting salary for teachers by nearly twenty percent (20%).  This would bring the starting salary to at least twenty-five thousand dollars ($25,000) by the year 2000.  Under this plan, the salary schedule would also contain significant "bumps”at the third step, which is the point at which teachers have attained continuing certification; at the fourth step, which is the point at which teachers have received career status; and at the eighth step, which is the point at which teachers have attained certificate renewal.
It is further the intent of the General Assembly that local school administrative units will not use these State-funded salary increments to supplant local salary supplements.
As a first step in implementing this plan, it is the goal of the General Assembly to fund a salary schedule plan for the 1997-98 school year for teachers with "A”certificates similar to the following:
1997-98 Salary Schedule Plan
"A”Teachers
	Years of	10-Month
	Experience	 Salary
0	$22,150
1	22,570
2	23,000
3	24,360
4	24,950
5	25,430
6	25,920
7	26,410
8	27,140
9	27,640
10	28,160
11	28,690
12	29,230
13	29,780
14	30,340
15	30,910
16	31,490
17	32,090
18	32,700
19	33,330
20	33,960
21	34,600
22	35,250
23	35,920
24	36,610
25	37,310
26	38,020
27	38,750
28	39,490
For subsequent fiscal years, it is the goal of the General Assembly to fund salary schedule plans similar to the following:
1998-99 Salary Schedule Plan
"A”Teachers
	Years of	10-Month
	Experience	 Salary
0	$23,100
1	23,520
2	23,950
3	25,910
4	26,650
5	27,130
6	27,620
7	28,110
8	29,140
9	29,640
10	30,160
11	30,690
12	31,230
13	31,780
14	32,340
15	32,910
16	33,490
17	34,090
18	34,700
19	35,330
20	35,960
21	36,600
22	37,250
23	37,920
24	38,610
25	39,310
26	40,020
27+	40,750

1999-2000 Salary Schedule Plan
"A”Teachers
	Years of	10-Month
	Experience	 Salary
0	$24,050
1	24,470
2	24,900
3	27,580
4	28,500
5	28,980
6	29,470
7	29,960
8	31,350
9	31,850
10	32,370
11	32,900
12	33,440
13	33,990
14	34,550
15	35,120
16	35,700
17	36,300
18	36,910
19	37,540
20	38,170
21	38,810
22	39,460
23	40,130
24	40,820
25	41,520
26+	42,230

2000-2001 School Year Plan
"A”Teachers
	Years of	10-Month
	Experience	 Salary
0	$25,000
1	25,420
2	25,850
3	29,050
4	30,000
5	30,580
6	31,070
7	31,560
8	33,210
9	33,710
10	34,230
11	34,760
12	35,300
13	35,850
14	36,410
15	36,980
16	37,560
17	38,160
18	38,770
19	39,400
20	40,030
21	40,670
22	41,320
23	41,990
24	42,680
25+	43,380

(b)	To further implement this plan, it is the goal of the General Assembly to increase longevity pay for teachers with 25 or more years of State service to four and one-half percent (4.5%) of base salary, the same level as for State employees.
(c)	To further implement this plan, it is the goal of the General Assembly to set aside a deferred bonus of two thousand five hundred dollars ($2,500) for teachers in their eighth year of teaching. The teachers can earn this deferred bonus by continuing to teach through their thirteenth year of teaching.
In order to phase in this bonus for the 1997-98 school year, deferred bonuses of lesser amounts would be set aside for teachers in their ninth through their twelfth year of teaching during the 1997-98 school year, in accordance with the following chart:

Years of Service,	Amount of Bonus
During the 1997-98
School Year
  8 years	$2,500
  9 years	 2,000
10 years	 1,500
11 years	 1,000
12 years	   500
At the end of the thirteenth year of teaching, the teacher could either receive the bonus plus interest in a lump sum or have the funds placed in a tax-deferred retirement account.

VII.	PAY FOR EXEMPLARY PERFORMANCE/SPECIAL ASSIGNMENTS

A.	DEFINITION OF "MASTERS/ADVANCED COMPETENCIES”BY THE STATE BOARD OF EDUCATION 
Section 16.  (a) The State Board of Education, after consultation with the Board of Governors of The University of North Carolina and the North Carolina Professional Teaching Standards Commission, shall develop a new category of teacher certificate known as the "Masters/Advanced Competencies”certificate.  To receive this certificate, an applicant shall successfully complete a masters degree program that includes rigorous academic preparation in the skills and knowledge expected of a master teacher or otherwise demonstrate to the satisfaction of the State Board that the candidate has acquired the skills and knowledge expected of a master teacher.
(b) Persons who qualify for a "G”certificate prior to September 1, 2000, shall be awarded a Masters/Advanced Competencies Certificate without meeting additional requirements.  On and after September 1, 2000, no additional "G”certificates shall be awarded.
(c) The State Board of Education shall report to the Joint Legislative Education Oversight Committee prior to January 1, 1998, on its progress in implementing subsection (a) of this section.

B.	BONUS PLAN FOR "MASTERS/ADVANCED COMPETENCIES”AND FOR NBPTS CERTIFICATION
Section 17.  It is the goal of the General Assembly to increase significantly the salaries of teachers who attain a "Masters/Advanced Competencies”certificate and teachers are certified by the National Board for Professional Teaching Standards so as to provide an incentive for good teachers to become excellent teachers.  In order to do so, it is further the goal of the General Assembly to enact, for the 1997-98 school year, a salary schedule plan that will provide a twelve percent (12%) bonus for teachers who attain NBPTS certification.  It is further the goal of the General Assembly to enact by the year 2000 a salary schedule plan that will provide a ten percent (10%) bonus to teachers who attain a "Masters/Advanced Competencies”certification.  With these bonuses, the top salary under the plan for teachers with both the "Masters/Advanced Competencies”certification and the NBPTS certification would be a minimum of fifty-three thousand dollars ($53,000) a year by the year 2000.

C.  PARTICIPATION FEE AND PAID LEAVE FOR NBPTS PROGRAM
Section 18.  It is the goal of the General Assembly to continue to pay for the National Board for Professional Teaching Standards (NBPTS) participation fee and for up to three days of approved paid leave for teachers participating in the NBPTS program during the 1997-98 school year and the 1998-99 school year and thereafter for teachers in the public schools.

D.  SCHOOL-BASED INCENTIVE AWARDS UNDER THE ABC'S PROGRAM
Section 19.  It is the goal of the General Assembly to provide school-based incentive awards under the ABC's Program to schools at which students achieve higher than expected improvements in the basics and the skills they need to get a good job. In accordance with the State Board of Education policy, incentive awards may be up to one thousand dollars ($1,000) for each teacher and up to five hundred dollars ($500.00) for each teacher assistant.
It is further the goal of the General Assembly to provide funds to provide assistance teams to low-performing schools.

E.	EXTRA PAY FOR MENTOR TEACHERS
Section 20.  It is the goal of the General Assembly to fund a mentor teacher program that will recognize the achievements of excellent, experienced teachers and will provide each newly certified teacher with a qualified and well-trained mentor.  The funds shall be used to compensate each mentor for serving as a mentor prior to and during the school year.

F.	EXTRA PAY FOR NEW TEACHER DEVELOPMENT
Section 21.  It is the goal of the General Assembly to compensate every newly certified teacher for three additional days of employment for orientation and classroom preparation.

G.	EXTRA PAY FOR PROFESSIONAL DEVELOPMENT
Section 22.  It is the goal of the General Assembly to provide funds for teachers' participation in professional development related to standards and accountability consistent with the State education policies.   The funds should be used for teacher development programs that enable teachers to renew continually their knowledge and professional skills, programs that train principals and master teachers to evaluate teachers with and without career status, programs that train mentors for beginning teachers, and other programs as directed by the State Board of Education.

H.	EXTRA PAY FOR EXTRA DAYS
Section 23.  It is the goal of the General Assembly to provide funds to enable school systems to utilize better the teacher workdays within the calendar for planning, staff development, remediation, and other purposes.  These funds shall be used to pay teachers for working on, and thereby forfeiting, vacation days.

I.	ADDITIONAL PAY FOR TEACHERS WITH ADDITIONAL RESPONSIBILITIES
Section 24.  It is the goal of the General Assembly to provide funds to compensate teachers for additional assignments and responsibilities for additional workdays outside of the school calendar.  These funds should be allocated to local school administrative units on the basis of average daily membership.  The local board should use one-half of the funds on the recommendation of the local superintendent and one-half on the recommendation of school improvement teams.  These funds could be used to compensate teachers for purposes such as teaching after-school or Saturday academies for students at risk of academic failure, developing curriculum,  participating in teacher training and development outside of the school calendar, and teaching Saturday to students needing additional instructional opportunities.

VIII.	FUNDS FOR COMPUTER SYSTEMS
Section 25.  G.S. 115C-546.1(a) reads as rewritten:
"(a)	There is created the Public School Building Capital Fund. The Fund shall be used to assist county governments in meeting their public school building capital needs and their equipment needs under their local school technology plans."
Section 26.  G.S. 115C-546.2 reads as rewritten:
"§ 115C-546.2.  Allocations from the Fund; uses; expenditures; reversion to General Fund; matching requirements.
(a)	Monies in the Fund shall be allocated to the counties on a per average daily membership basis according to the average daily membership for the budget year as determined and certified by the State Board of Education. Interest earned on funds allocated to each county shall be allocated to that county.
(b)	Counties shall use monies in the Fund for capital outlay projects including the planning, construction, reconstruction, enlargement, improvement, repair, or renovation of public school buildings and for the purchase of land for public school buildings; for  equipment to implement a local school technology plan that is approved pursuant to G.S. 115C-102.6C; or for both.  Monies used to implement a local school technology plan shall be transferred to the State School Technology Fund and allocated by that Fund to the local school administrative unit for equipment.
As used in this section, ‘public school buildings' only includes facilities for individual schools that are used for instructional and related purposes and does not include centralized administration, maintenance, or other facilities.
In the event a county finds that it does not need all or part of the funds allocated to it for capital outlay projects including the planning, construction, reconstruction, enlargement, improvement, repair, or renovation of public school buildings, for the purchase of land for public school buildings, or for equipment to implement a local school technology plan, the unneeded funds allocated to that county may be used to retire any indebtedness incurred by the county for public school facilities.
In the event a county finds that its public school building needs and its school technology needs can be met in a more timely fashion through the allocation of financial resources previously allocated for purposes other than school building needs or  school technology needs and not restricted for use in meeting public school building needs or school technology needs, the county commissioners may, with the concurrence of the affected local Board of Education, use those financial resources to meet school building needs and school technology needs and may allocate the funds it receives under this Article for purposes other than school building needs or school technology needs to the extent that financial resources were redirected from such purposes. The concurrence described herein shall be secured in advance of the allocation of the previously unrestricted financial resources and shall be on a form prescribed by the Local Government Commission.
(c)	Monies in the Fund allocated for capital projects shall be matched on the basis of one dollar of local funds for every three dollars of State funds. Monies in the Fund transferred to the State Technology Fund do not require a local match.
Revenue received from local sales and use taxes that is restricted for public school capital outlay purposes pursuant to G.S. 105-502 or G.S. 105-487 may be used to meet the local matching requirement. Funds expended by a county after July 1, 1986, for land acquisition, engineering fees, architectural fees, or other directly related costs for a public school building capital project that was not completed prior to July 1, 1987, may be used to meet the local match requirement."

IX. MISCELLANEOUS PROVISIONS

A.	CAPTIONS ARE FOR REFERENCE ONLY AND DO NOT LIMIT TEXT
Section 27.  The series of captions used in this act (the descriptive phrases in boldface and capital letters) are inserted for convenience and reference only, and they in no way define, limit, or prescribe the scope or application of the text of this act.

B.	NO APPROPRIATIONS REQUIRED BY ACT
Section 28.  This act shall not be construed to obligate the General Assembly to appropriate any funds to implement the provisions of this act.  Nothing in Sections 15 through 24 of this act shall be construed to  create any rights or causes of action.

C.	EFFECTIVE DATES
Section 29.  This act is effective when it becomes law.