GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	1
HOUSE BILL 1178
     

 
Short Title:	Voters Resolve Local School Funding Disputes.	()	
Sponsors:	Representative Blust.	
Referred to:	Rules, Calendar, and Operations of the House.	
April 12, 2001

A BILL TO BE ENTITLED
AN ACT to let the voters resolve disputes between the board of education and the board of county commissioners regarding school funding.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 115C‑431 reads as rewritten:
"§ 115C‑431.  Procedure for resolution of dispute between board of education and board of county commissioners.
(a)	If the board of education determines that the amount of money appropriated to the local current expense fund, or the capital outlay fund, or both, by the board of county commissioners is not sufficient to support a system of free public schools, the chairman of the board of education and the chairman of the board of county commissioners shall arrange a joint meeting of the two boards to be held within seven days after the day of the county commissioners' decision on the school appropriations.
Prior to the joint meeting, the Senior Resident Superior Court Judge shall appoint a mediator unless the boards agree to jointly select a mediator. The mediator shall preside at the joint meeting and shall act as a neutral facilitator of disclosures of factual information, statements of positions and contentions, and efforts to negotiate an agreement settling the boards' differences.
At the joint meeting, the entire school budget shall be considered carefully and judiciously, and the two boards shall make a good‑faith attempt to resolve the differences that have arisen between them.
(b)	If no agreement is reached at the joint meeting of the two boards, the mediator shall, at the request of either board, commence a mediation immediately or within a reasonable period of time. The mediation shall be held in accordance with rules and standards of conduct adopted under Chapter 7A of the General Statutes governing mediated settlement conferences but modified as appropriate and suitable to the resolution of the particular issues in disagreement.
Unless otherwise agreed upon by both boards, the following individuals shall constitute the two working groups empowered to represent their respective boards during the mediation:
(1)	The chair of each board or the chair's designee;
(2)	The superintendent of the local school administrative unit and the county manager or either's designee;
(3)	The finance officer of each board; and
(4)	The attorney for each board.
Members of both boards, their chairs, and representatives shall cooperate with and respond to all reasonable requests of the mediator to participate in the mediation. Notwithstanding Article 33C of Chapter 143 of the General Statutes, the mediation proceedings involving the two working groups shall be conducted in private. Evidence of statements made and conduct occurring in a mediation are not subject to discovery and are inadmissible in any court action. However, no evidence otherwise discoverable is inadmissible merely because it is presented or discussed in a mediation. The mediator shall not be compelled to testify or produce evidence concerning statements made and conduct occurring in a mediation in any civil proceeding for any purpose, except disciplinary hearings before the State Bar or any agency established to enforce standards of conduct for mediators. Reports by members of either working group to their respective boards shall be made in compliance with Article 33C of Chapter 143 of the General Statutes.
Unless both boards agree otherwise, or unless the boards have already resolved their dispute, the mediation shall end no later than August 1. The mediator shall have the authority to determine that an impasse exists and to discontinue the mediation. The mediation may continue beyond August 1 provided both boards agree. If both boards agree to continue the mediation beyond August 1, the board of county commissioners shall appropriate to the local school administrative unit for deposit in the local current expense fund a sum of money sufficient to equal the local contribution to this fund for the previous year.
If the working groups reach a proposed agreement, the terms and conditions must be approved by each board. If no agreement is reached, the mediator shall announce that fact and the final positions of both the board of county commissioners and the board of education to the chairs to the chairs of both boards, the Senior Resident Superior Court Judge, and the public. The mediator shall not disclose any other information about the mediation. The mediator shall not make any recommendations or public statement of findings or conclusions.
The local board of education and the board of county commissioners shall share equally the mediator's compensation and expenses. The mediator's compensation shall be determined according to rules adopted under Chapter 7A of the General Statutes.
(c)	 If the mediator announces to the chairs of both boards that no agreement has been reached, the board of county commissioners shall provide funding to the schools in accordance with subsection (d) of this section. The question of whether the final position of the board of county commissioners or the final position of the board of education shall be implemented shall be submitted to the voters of the county in a referendum or election called for the purpose of resolving this matter. The election or referendum shall be held under the provisions governing elections or referendums as set forth in G.S. 115C-507. The board of county commissioners shall have authority to have such elections or referendums conducted by the board of elections of its county under the provisions set forth in G.S. 115C-507.
(d)	Pending the outcome of the election or referendum conducted in accordance with subsection (c) of this section the board of county commissioners shall appropriate to the local school administrative unit for deposit in the local current expense fund a sum of money sufficient when added to all other moneys available to that fund to equal the amount of this fund for the previous year.  
(e)	If the mediator announces that no agreement has been reached after the due date prescribed by law for property taxes, the board of county commissioners shall levy such supplementary taxes as may be required by the judgment, notwithstanding any other provisions of law with respect to the time for doing acts necessary to a property tax levy. Upon making a supplementary levy under this subsection, the board of county commissioners shall designate the person who is to compute and prepare the supplementary tax receipts and records for all such taxes. Upon delivering the supplementary tax receipts to the tax collector, the board of county commissioners shall proceed as provided in G.S. 105‑321.
The due date of supplementary taxes levied under this subsection is the date of the levy, and the taxes may be paid at par or face amount at any time before the one hundred and twentieth day after the due date. On or after the one hundred and twentieth day and before the one hundred and fiftieth day from the due date there shall be added to the taxes interest at the rate of two percent (2%). On or after the one hundred and fiftieth day from the due date, there shall be added to the taxes, in addition to the two percent (2%) provided above, interest at the rate of three‑fourths of one percent (3/4 of 1%) per 30 days or fraction thereof until the taxes plus interest have been paid. No discounts for prepayment of supplementary taxes levied under this subsection shall be allowed."
SECTION 2.  G.S. 115C‑507 reads as rewritten:
"§ 115C‑507.  Rules governing elections.
(a)	All elections under this Chapter shall be held and conducted by the appropriate county or municipal board of elections.
(b)	If the purpose of the election is to enlarge a city administrative unit, the notice of election shall include the following: a statement of the purpose of the election; a legal description of the area within which the election is to be held; and a statement that if a majority of those who shall vote in the area proposed to be consolidated with the city administrative unit shall vote in favor of such enlargement such area shall be consolidated with the city administrative unit, effective July 1 next following such election, and there shall thereafter be levied in such area so consolidated with the city administrative unit the same school taxes as shall be levied in the other portions of the city administrative unit, including any tax levy to provide for the payment of school bonds theretofore issued by or for such city administrative unit or for all or some part of the school area annexed to such city administrative unit, unless payment of such bonds has otherwise been provided for.
The notice of the election shall be given as provided in G.S. 163‑33(8) and in addition include a legal description of the area within which the election is to be held, and, if any additional tax is proposed to be levied, the maximum rate of tax to be levied which shall not exceed the maximum prescribed by this Article, and the purpose of the tax.
No new registration of voters is required, but the board of elections, in its discretion, may use either Method A or Method B set forth in G.S. 163‑288.2 in activating the voters in the territory.
The ballot in such election shall contain the words "FOR local tax and AGAINST local tax" except when the election is held under subsection (c) of G.S. 115C‑501, in which case the ballots shall contain the words "FOR enlargement of the _____________City Administrative Unit and school tax of the same rate," and "AGAINST enlargement of the ____________City Administrative Unit and school tax of the same rate.
(c)	If the purpose of the election is to approve the amount of funding for the public schools, the notice of election shall include a statement of the purpose of the election and the mediator's statement of the final position of the board of county commissioners and the final position of the board of education on the matter of school funding. The notice shall also state that if a majority of the voters vote in favor of the position of the board of county commissioners, the position of the board of county commissioners shall be implemented; if a majority of the voters vote in favor of the position of the board of education, the position of the board of education shall be implemented. Notice of the election shall be given as provided in G.S. 163-33(8).
No new registration of voters is required, but the board of elections, in its discretion, may use either Method A or Method B set forth in G.S. 163-288.2 in activating the voters in the territory.
The ballot in such election shall contain the words "FOR the position of the board of county commissioners regarding school funding" and "FOR the position of the local board of education regarding school funding".
(d)	The elections shall be held in accordance with the applicable provisions of Chapter 163 and the expense of the election shall be paid by the board of education of the administrative unit in which the election is held, provided that when territory is proposed to be added to a city administrative unit, that unit shall bear the expense.
(e)	No election held under this Article shall be open to question except in an action or proceeding commenced within 30 days after the board of elections has certified the results."
SECTION 3.  This act becomes effective July 1, 2001.