GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
S	2
SENATE BILL 927
Education/Higher Education Committee Substitute Adopted 4/23/01

Short Title:	Modify Laws Re: Students With Disabilities.	()	
Sponsors:	     	
Referred to:	     	
April 5, 2001

A BILL TO BE ENTITLED
AN ACT TO MODIFY THE LAWS CONCERNING CHILDREN WITH DISABILITIES and to make an appropriation.

The General Assembly of North Carolina enacts:
SECTION 1.  Article 9 of Chapter 115C of the General Statutes reads as rewritten:
"Article 9.
"Special Education.
"Part 1. State Policy.
"§ 115C‑106.  Policy.
(a)	The General Assembly of North Carolina hereby declares that the policy of the State is to ensure every child a fair and full opportunity to reach his full potential and that no child as defined in G.S. 115C-109 and in G.S. 115C‑122 shall be excluded from service or education for any reason whatsoever. This policy shall be the practice of the State for children from birth through age 21 and the State requires compliance by all local educational agencies and local school administrative units, all charter schools, all local human services agencies including, but not limited to, local health departments, local social service departments, community mental health centers and all State departments, agencies, institutions except institutions of higher education, and private providers which are recipients of general funds as these funds are defined in G.S. 143‑1.
(b)	The policy of the State is to provide a free appropriate publicly supported education to every child with disabilities. The purpose of this Article is to (i) provide for a system of special educational opportunities for all children requiring special education, hereinafter called children with disabilities; (ii) provide a system for identifying and evaluating the educational needs of all children with disabilities; (iii) require evaluation of the needs of such children and the adequacy of special education programs before placing children in the programs; (iv) require periodic evaluation of the benefits of the programs to the children and of the nature of the children's needs after placement; (v) prevent denials of equal educational opportunity on the basis of physical, emotional, or mental disability; (vi) assure that the rights of children with disabilities and their parents or guardians are protected; (vii) ensure that there be no inadequacies, inequities, and discrimination with respect to children with disabilities; and (viii) bring State law, regulations, and practice into conformity with relevant federal law.
"§ 115C‑107.  Children can learn.
The General Assembly finds that all children with disabilities are capable of benefiting from appropriate programs of special education and that they have the ability to be educated and to learn and develop. Accordingly, the State has a duty to provide them with a free appropriate public education.
"§ 115C‑108.  Definitions.
The following definitions apply in this Article, except when the context clearly indicates a different meaning:
(1)	The term 'local educational agency' means all local school administrative units, all charter schools, and all other State and local governmental agencies providing special education services or having children with disabilities in their care, custody, management, jurisdiction, control, or programs.
(2)	The term 'individualized education program' means a written program for each child with disabilities that specifies the special education to be provided to that child and is developed in an individualized education program team meeting.
(3)	The term 'special education' means specially designed instruction, at no cost to the parent, to meet the unique needs of the child with a disability, including classroom instruction, instruction in physical education, home instruction, instruction in hospitals and institutions, and instruction in other settings. The term includes speech-language pathology if the service consists of specially designed instruction, at no cost to the parent, to meet the unique needs of a child with a disability, and is considered 'special education' rather than a 'related service' under State standards. The term also includes vocational education and travel training if it consists of specially designed instruction, at no cost to the parent, to meet the unique needs of a child with a disability.
(4)	The term 'related services' means transportation and such developmental, corrective, and other supportive services (including speech pathology and audiology; orientation and mobility services; psychological services; physical and occupational therapy; recreation including therapeutic recreation; social work services; medical and counseling services, including rehabilitation counseling,) as may be required to assist a child with a disability to benefit from special education, and includes the early identification and assessment of disabling conditions in children. Medical services shall be for diagnostic and evaluation purposes only. A student who does not require special education is not eligible for a related service funded under this program.
"§ 115C‑109.  Definition of children with disabilities.
As used in this Part, the term 'children with disabilities' includes, without limitation, all children who are entitled to enroll in the public schools under G.S. 115C-364 and G.S. 115C-366(a) and who because of permanent or temporary mental, physical or emotional disabilities need special education, are unable to have all their needs met in a regular class without special education or related services, or are unable to be adequately educated in the public schools.  It includes those who are autistic, behaviorally emotionally disabled, deaf-blind, developmentally delayed, hearing impaired, mentally disabled, multihandicapped, orthopedically impaired, other health impaired, specific learning disabled, speech-language impaired, traumatic brain injured, and visually impaired.
"§ 115C‑110.  Services mandatory; single‑agency responsibility; State and local plans; census and registration.
(a)	The Board shall cause all local educational agencies to provide special education and related services appropriate to all children with disabilities. In this regard, all local educational agencies shall explore available local resources and determine whether the services are currently being offered by an existing public or private agency.
When a specified special education or related service is being offered by a local public or private resource, any local educational agency shall consider negotiating for the purchase of that service or shall present full consideration of alternatives and its recommendations to the Board. The Board shall support and encourage joint and collaborative special education planning and programming at local levels to include local administrative units and the programs and agencies of the Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention.
The jurisdiction of the Board with respect to the design and content of special education programs or related services for children with disabilities extends to and over the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction.
All provisions of this Article that are specifically applicable to local school administrative units or to educational agencies are applicable to charter schools, the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction and their divisions and agencies. All duties, responsibilities, rights and privileges specifically imposed on or granted to local school administrative units or local educational agencies by this Article also are imposed on or granted to charter schools, the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction and their divisions and agencies. However, with respect to children with disabilities who are residents or patients of any state‑operated or state‑supported residential treatment facility, including without limitation, a school for the deaf, school for the blind, mental hospital or center, mental retardation center, or in a facility operated by the Department of Juvenile Justice and Delinquency Prevention, the Department of Correction or any of its divisions and agencies, the Board may contract with the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction for the provision of special education and related services and the power to review, revise and approve any plans for special education and related services to those residents.
The Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention shall submit to the Board their plans for the education of children with disabilities in their care, custody, or control. The Board shall have general supervision and shall set standards, by rule or regulation, for the programs of special education to be administered by the Board and by local educational agencies. The Board may grant specific exemptions for programs administered by the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, or the Department of Correction when compliance by them with the Board's standards would, in the Board's judgment, impose undue hardship on this department and when other procedural due process requirements, substantially equivalent to those of G.S. 115C‑116, are assured in programs of special education and related services furnished to children with disabilities served by this department. Further, the Board shall recognize that inpatient and residential special education programs within the Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention may require more program resources than those necessary for optimal operation of these programs in local school administrative units or charter schools.
(b)	The Board shall make and keep current a plan for the implementation of the policy set forth in G.S. 115C‑106(b). The plan shall include:
(1)	A child count of the children with disabilities in the State, as required by subsection (j) of this section;
(2)	A procedure for diagnosis and evaluation of each child;
(3)	An inventory of the personnel and facilities available to provide special education for these children;
(4)	An analysis of the present distribution of responsibility for special education between State and local educational agencies, together with recommendations for any necessary or desirable changes in the distribution of responsibilities;
(5)	Standards for the education of children with disabilities;
(6)	Programs and procedures for the development and implementation of a comprehensive system of personnel development; and
(7)	Any additional matters, including recommendations for amendment of laws, changes in administrative regulations, rules and practices and patterns of special organization, and changes in levels and patterns of education financial support.
	
(d)	The Board shall adopt rules covering:
(1)	The qualifications of and standards for certification of teachers, teacher assistants, speech clinicians, school psychologists, and others involved in the education and training of children with disabilities;
(2)	Minimum standards for the individualized educational program for all children with disabilities; and
(3)	Any other rules as may be necessary or appropriate for carrying out the purposes of this Article. Representatives from the Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention shall be involved in the development of the standards outlined under this subsection.

	
	
(i)	Each local school administrative unit shall provide free appropriate special education and related services in accordance with this Article for all children with disabilities who are residents of, or whose parents or guardians are residents of, the local school administrative unit, beginning with children aged five. No matriculation or tuition fees or other fees or charges shall be required or asked of children with disabilities or their parents or guardians except those fees or charges as are required uniformly of all public school pupils. The provision of free appropriate special education within the facilities of the Department of Health and Human Services and the Department of Juvenile Justice and Delinquency Prevention shall not prevent that department from charging for other services or treatment.
(j)	The Board shall require an annual child count of children with disabilities to be taken in each school year. The child count shall be conducted annually and shall be completed not later than October 15, and shall be submitted to the Governor and General Assembly and be made available to the public no later than January 15 annually.
In conducting the child count, the Board shall require the cooperation, participation, and assistance of all local educational agencies providing or required to provide special education services to children with disabilities, and those local educational agencies shall cooperate, participate with and assist the Board in conducting the child count.
The child count shall include the number of children identified with disabilities, their age, the nature of their disability, their county or city of residence, their local school administrative unit residence, whether they are being provided special educational or related services and if so by what local educational agency, whether they are not being provided special education or related services, the identity of each local educational agency having children with disabilities in its care, custody, management, jurisdiction, control, or programs, the number of children with disabilities being served by each local educational agency, and any other information or data the Board requires. The child count shall be of children with disabilities between the ages of birth through 21, inclusive.
(k)	The Department shall monitor the effectiveness of individualized education programs in meeting the educational needs of all children with disabilities.
(l)	The Board shall provide for procedures assuring that in carrying out the requirements of this Article procedures are established for consultation with individuals involved in or concerned with the education of children with disabilities, including parents or guardians of such children, and there are public hearings, adequate notice of such hearings, and an opportunity for comment available to the general public prior to the adoption of the policies, procedures, and rules or regulations required by this Article.
(m)	Children with disabilities shall be educated in the least restrictive appropriate setting, as defined by the State Board of Education. 
"Part 2. Nondiscrimination in Education.
"§ 115C‑111.  Free appropriate education for all children with disabilities.
(a)	No child with disabilities between the ages specified by G.S. 115C‑109 shall be denied a free appropriate public education or be prevented from attending the public schools of the local school administrative unit in which that child or that child's parents or legal guardian resides or from which that child receives services or from attending any other public program of free appropriate public education because he is a child with disabilities. If it appears that a child should receive a program of free appropriate public education in a program operated by or under the supervision of the Department of Health and Human Services or the Department of Juvenile Justice and Delinquency Prevention, the local school administrative unit shall confer with the appropriate Department of Health and Human Services or Department of Juvenile Justice and Delinquency Prevention staff for their participation and determination of the appropriateness of placement in the program and development of the child's individualized education program. The individualized education program may then be challenged under the due process provisions of G.S. 115C‑116. 
(b)	Local educational agencies may establish special education and related programs for children with disabilities aged birth through four and 19 through 21 inclusive.
"§ 115C‑112:  Repealed by Session Laws 1995 (Regular Session, 1996), c. 716, s. 20.
"§ 115C‑113.  Evaluation; individualized education program.
(a)	Before taking any action described in subsection (b), below, each local educational agency shall conduct evaluations and determine eligibility consistent with federal regulations and State Board policies. The local educational agency shall use the evaluation to determine if the child has disabilities, diagnose and evaluate those needs, propose special education programs to meet those needs, and provide or arrange to provide such programs. A multi‑disciplinary evaluation is one which includes, without limitation, medical (if necessary), psychological (if necessary) and educational assessments and recommendations; such an evaluation may include any other assessments as the Board may, by rule or regulation, require.
All testing and evaluation materials and procedures utilized for the purposes of evaluation and placement of children with disabilities will be selected and administered so as not to be racially or culturally discriminatory. Such materials or procedures shall be provided and administered in the child's native language or mode of communication, unless it clearly is not feasible to do so, and no single procedure shall be the sole criterion for determining an appropriate educational program for a child.
(b)	A multi‑disciplinary evaluation based on rules developed by the Board shall be made before any such child is placed in a special education program, removed from such a program and placed in a regular school program, transferred from one type of special education program to another, removed from a school program for placement in a nonschool program.
(c)	Referral of any child shall be in writing, signed by the person requesting an evaluation, setting forth the reasons for the request; it shall be sent or delivered to one of the following: the child's teacher, the principal of the school to which the child is, has been or will be assigned, or the superintendent of the affected local educational agency or his designee. The local educational agency shall send a written notice to the parent or guardian describing the evaluation procedure to be followed and requesting consent for the evaluation. If the parents or guardian consent, the evaluation may be undertaken; if they do not, the local educational agency may obtain a due process hearing under G.S. 115C‑116 on the failure of the parent or guardian to consent.
The local educational agency shall provide or cause to be provided, as soon as possible after receiving consent for evaluation, an evaluation appropriate to the needs of the child unless the parents or guardian have objected to such evaluation. If at the conclusion of the evaluation, the child is determined to be a child with disabilities, the local educational agency shall within 30 calendar days convene an individualized education program committee. The purpose of the meeting shall be to propose the special education and related services for the child. An interpretation of the multi‑disciplinary evaluation will be made to the parent or guardian during the meeting. The proposal shall set forth the specific benefits expected from such a program, a method for monitoring the benefits, and a statement regarding conditions that will be considered indicative of the child's readiness for participation in regular classes.
After an initial referral is made, the provision of special education and related services shall be implemented within 90 calendar days to eligible students, unless the parents or guardian refuse to consent to evaluation or placement or the parent or local educational agency requests a due process hearing.
Within 12 months after placement in a special education program, and at least annually thereafter, those people responsible for developing the child's individualized education program shall review the child's progress and, on the basis of previously stated expected benefits, decide whether to continue or discontinue the placement or program. If the review indicates that the placement or program does not benefit the child, the appropriate reassignment or change in the prescribed program shall be recommended to the parents or guardian.
The local educational agency shall keep a complete written record of all evaluation procedures attempted, their results, the conclusions reached, and the proposals made.
(d)	The local educational agency shall furnish the results, findings, and proposals, as described in the individualized education program based on the evaluation to the parents or guardian in writing in the parents' or guardian's native language or by their dominant mode of communication, prior to the parent or guardian giving consent for initial placement in special education and related services. Prior notice will be given to the parents or guardian by the local educational education agency before any change in placement.
A reevaluation must be completed at least every three years to determine the appropriateness of the child's continuing to receive special education and related services.
(e)	Each local educational agency shall make and keep current a list of all children evaluated under this section who are found to have disabilities and of all children who are receiving home, hospital, institutional or other special education services, including those being educated within the regular classroom setting or in other special education programs.
(f)	Each local educational agency shall prepare individualized educational programs for all children found to be children with disabilities. The individualized education program shall be developed in conformity with  federal law and the implementing regulations issued by the United States Department of Education and shall be implemented in conformity with timeliness set by that Department.  The individualized education program team shall meet requirements of federal law and Board procedures. The individualized education program shall be based on Board procedures and policies. Each local educational agency shall establish, or revise, whichever is appropriate, the individualized education program of each child with disabilities each school year and will then review and, if appropriate revise, its provisions periodically, but not less than annually. In the facilities and programs of the Department of Health and Human Services and the Department of Juvenile Justice and Delinquency Prevention, the individualized education program shall be planned in collaboration with those other individuals responsible for the design of the total treatment or habilitation plan or both; the resulting educational, treatment, and habilitation plans shall be coordinated, integrated, and internally consistent.
(g)	Repealed by Session Laws 1996, Second Extra Session, c. 18, s. 18.24(e).
	"§ 115C‑113.1.  Surrogate parents.
In the case of a child whose parent or guardian is unknown, whose whereabouts cannot be determined after reasonable investigation, or who is a ward of the State, the local educational agency shall appoint a surrogate parent for the child. In no case shall the person appointed be a person ineligible under applicable law.
"§ 115C‑114.  Records; privacy and expunction.
(a)	No local educational agency may release to any persons other than the eligible student, his parents or guardian or any surrogate parent any records, data or information on any child with disabilities except (i) as permitted by the prior written consent of the student, his parents or guardian or surrogate parent, (ii) as required or permitted by federal law, (iii) school officials within the local education agency who have legitimate educational interest, (iv) school officials of other local educational agencies in which the student intends to enroll, or (v) certain authorized representatives of the State and federal government who are determining eligibility of the child for aid, as provided under Public Law 93‑380 or other federal law.
(b)	The eligible student, his parents or guardian or surrogate parent shall have the right to read, inspect and copy all and any records, data and information maintained by a local educational agency with respect to the student, and, upon their request, shall be entitled to have those records, data and information fully explained, interpreted and analyzed for them by the staff of the agency. The parent or guardian or surrogate parent may demand that his request must be honored within not more than 45 days after it is made.
(c)	The student, his parents or guardian or surrogate parent shall have the right to add to the records, data and information written explanations or clarifications thereof, and to cause the expunction of incorrect, outdated, misleading or irrelevant entries. If a local educational agency refuses to expunge incorrect, outdated, misleading  or irrelevant entries after having been asked to do so by the parent,  such person may obtain a due process hearing, under G.S. 115C‑116, on the agency's refusal, and must request the hearing within 30 days after the agency's refusal.
"§ 115C‑115.  Placements in private schools, out‑of‑state schools and schools in other local educational agencies.
The board shall adopt rules and regulations to assure that:
(1)	There be no cost to the parents or guardian for the placement of a child in a private school, out‑of‑state school or a school in another local educational agency if the child was so placed by the Board or by the appropriate local educational agency as the means of carrying out the requirement of this Article or any other applicable law requiring the provision of special education and related services to children within the State.
(2)	No child shall be placed by the Board or by the local educational agency in a private or out‑of‑state school unless the Board has determined that the school meets standards that apply to State and local educational agencies and that the child so placed will have all the rights he would have if served by a State or local educational agency.
(3)	If the placement of the child in a private school, out‑of‑state school or a school in another local educational agency determined by the Superintendent of Public Instruction to be the most cost‑effective way to provide an appropriate education to that child and the child is not currently being educated by the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, or the Department of Correction, the State will bear a portion of the cost of the placement of the child. The local school administrative unit shall pay an amount equal to what it receives per pupil from the State Public School Fund and from other State and federal funds for children with disabilities for that child. The State shall pay the full cost of any remainder up to a maximum of fifty percent (50%) of the total cost.
"Part 3. Appeals.
"§ 115C‑116.  Notice of decisions; mediation, administrative review, and judicial review of disagreements.
(a)	Prior Notice. – The parent, guardian, or surrogate parent of a child shall be notified promptly when the local educational agency proposes to initiate or change, or refuses to initiate or change, the identification, evaluation, or educational placement of a child as a child with disabilities. The written notice shall contain a full explanation of all the procedural safeguards available to the parent, guardian, or surrogate parent including the right to review the proposed decision, and a statement offering the parent, guardian, or surrogate parent the opportunity for mediation. The local educational agency shall document that all required notices have been sent to and received by parents, guardians, or surrogate parents.
(b)	Mediation. – It is the policy of this State to encourage local educational agencies and parents, guardians, surrogate parents, custodians, and eligible students to seek informal resolution of disputes or disagreements regarding the identification of children with disabilities and the provision of special education and related services before filing a request for a formal administrative review of the matter. To that end, the following provisions apply to the mediation of these disputes:
(1)	Purpose. – The purpose of mediation is to clarify the concerns of the parents and to resolve disputes.
(2)	Definitions. – As used in this subsection, the following terms have the following meanings:
a.	'Dispute' means a disagreement between the parties that is subject to review under subsection (c) of this section.
b.	'Mediation' means an informal process conducted by a mediator with the objective of helping parties voluntarily settle their dispute.
c.	'Mediator' means a neutral person who acts to encourage and facilitate a resolution of a dispute.
d.	'Parents' means parents, guardians, surrogate parents, custodians, and eligible students.
e.	'Parties' means the local educational agency and the parents.
(3)	Nonadversarial. – The mediation shall be informal and nonadversarial as provided in G.S. 150B‑22.
(4)	Rules of procedure. – The mediator is encouraged to follow applicable procedures provided in G.S. 7A‑38.1, G.S. 7A‑38.2, and applicable rules adopted by the Supreme Court under G.S. 7A‑38.1. The mediator may establish other procedures to facilitate an informal resolution of the dispute. The mediator shall not render a decision or judgment as to the merits of the dispute.
(5)	Request for mediation. – Before a request for formal administrative review is filed, mediation shall commence upon the request of either party, so long as the other party consents.
(6)	Selection of mediator. – The parties shall agree to the selection of the mediator. The Exceptional Children Division of the Department of Public Instruction shall maintain a list of mediators who are certified or trained in resolving disputes under this subsection.
(7)	Notice of right to mediation. – The local educational agency shall notify parents of their right to request mediation under this subsection.
(8)	Time periods tolled. – Notwithstanding G.S. 150B‑23, time periods related to the filing of a formal administrative review or the taking of any other action with respect to the dispute, including any applicable statutes of limitations, are tolled upon the filing of a request for mediation under this subsection until the mediation is completed or the mediator declares an impasse.
(9)	Good cause for continuance. – A good faith effort by both parties to mediate the dispute is presumed to constitute good cause for a continuance so long as the administrative law judge does not find that the time delay for mediation would likely result in irreparable harm to one of the parties or to the child.
(10)	Inadmissibility of negotiations. – Evidence of statements made and conduct occurring in a mediation shall not be subject to discovery and shall be inadmissible in any proceeding in the action or other actions on the same claim. However, no evidence otherwise discoverable shall be inadmissible merely because it is presented or discussed in a mediation. Mediators shall not be compelled in any civil proceeding to testify or produce evidence concerning statements made and conduct occurring in a mediation.
(11)	Mediator's fees. – If mediation is requested before a request for formal administrative review is filed, the local educational agency shall pay the mediator's fees for one mediation session. If resolution is not reached in that session, the parties must agree to continue the mediation. The local educational agency shall pay any mediator fees for subsequent mediation sessions unless the parties agree otherwise.
(12)	Mediated settlement conference after a request for administrative review. – In addition to mediation as provided by this subsection, the parties may participate in a mediated settlement conference as provided by G.S. 150B‑23.1.
(13)	Promotion of other settlement procedures. – The parties may agree to use other dispute resolution methods or to use mediation in other circumstances, including after a request for formal administrative review is filed, to the extent permitted under State and federal law.
(c)	Right of Review. – The parent, guardian, or surrogate parent may obtain review of proposed decisions on the following grounds:
(1)	The child has not been identified or has been incorrectly identified as a child with disabilities;
(2)	The child's individualized education program is not appropriate to meet his needs;
(3)	The child's individualized education program is not being implemented; or
(4)	The child is otherwise being denied a free, appropriate education.
In addition, a local educational agency may obtain review as provided by this section if a parent, guardian, or surrogate parent refuses to consent to the evaluation of the child for the purpose of determining whether the child is a child with disabilities or for the purpose of developing a free appropriate educational program for the child.
(d)	Administrative Review. – Except as otherwise provided in this section, the administrative review shall be initiated and conducted in accordance with Article 3 of Chapter 150B of the General Statutes, the Administrative Procedure Act.
(e)	Scope of Review. – The issues for review shall be limited to those set forth in subsection (c).
(f)	Venue of Hearing. – The hearing shall be conducted in the county where the child attends school or is entitled to enroll pursuant to G.S. 115C‑366.
(g)	Hearing Closed. – The hearing shall be closed to the public unless the parent, guardian, or surrogate parent, requests in writing that the hearing be open to the public.
(h)	Decision of the Administrative Law Judge. – Following the hearing, the administrative law judge shall make a decision regarding the issues set forth in subsection (c). The decision shall contain findings of fact and conclusions of law. Notwithstanding the provisions of Chapter 150B of the General Statutes, the decision of the administrative law judge becomes final and not subject to further review unless appealed to the Review Officer as provided in subsection (i). A copy of the administrative law judge's decision shall be served upon each party and a copy shall be furnished to the attorneys of record. The written notice shall contain a statement informing the parties of the availability of appeal and the 30‑day limitations period for appeal as set forth in subsection (i).
(i)	Review by Review Officer. – Any party aggrieved by the decision of the administrative law judge may appeal that decision within 30 days after receipt of notice of the decision by filing a written notice of appeal with the Superintendent of Public Instruction. The State Superintendent of Public Instruction shall appoint a Review Officer from a pool of review officers approved by the State Board of Education. A Review Officer shall be an educator or other professional who is knowledgeable about special education and who possesses such other qualifications as may be established by the State Board of Education. The Review Officer may issue subpoenas upon his own motion or upon a written request.
No person may be appointed as a Review Officer if that person is an employee of an agency that has been involved in the education or care of the child whose parents have filed the petition (including an employee or official of the State Department of Education or the State Board of Education) or if the person is or has been employed by the local board of education responsible for the education or care of the child whose parents have filed the petition. The decision of the Review Officer shall contain findings of fact and conclusions of law and becomes final unless an aggrieved party brings a civil action pursuant to subsection (k). A copy of the decision shall be served upon each party and a copy shall be furnished to the attorneys of record. The written notice shall contain a statement informing the parties of the right to file a civil action and the 30‑day limitations period for filing a civil action pursuant to subsection (k).
(j)	Power to Enforce Final Decision. – The State Board shall have the power to enforce the final decision of the administrative law judge, if not appealed pursuant to subsection (i), or the final decision of the Review Officer, by ordering a local educational agency:
(1)	To provide a child with appropriate education;
(2)	To place a child in a private school that is approved to provide special education and that can provide the child an appropriate education; or
(3)	To reimburse parents for reasonable private school placement costs in accordance with the provisions of G.S. 115C‑115 when it is determined that the local educational agency did not offer or provide the child with appropriate education and the private school in which the parent, guardian, or surrogate parent placed the child was an approved school and did provide the child an appropriate education.
(k)	Right to File Civil Action. – Any party aggrieved by the decision of the Review Officer may institute a civil action in State court within 30 days after receipt of the notice of the decision or in federal court as provided in 20 U.S.C. § 1415.
(l)	Change in Placement. – Upon the filing of a petition, no change may be made in the child's status or program by school officials during the period of the administrative review or subsequent judicial review, unless the parent, guardian, or surrogate parent gives written consent.
"Part 5. Council on Educational Services for Children with Disabilities.
"§ 115C‑121.  Establishment; organization; powers and duties.
(a)	There is hereby established an Advisory Council to the State Board of Education to be called the Council on Educational Services for  Children with Disabilities.
						
(b)	This advisory panel shall be constituted so as to include all individuals referenced in applicable federal law and regulations. A majority of the members of the Council shall be individuals with disabilities or parents of children with disabilities.(b1)	Each Council member shall serve without pay, but shall receive travel allowances and per diem in the same amount provided for members of the North Carolina General Assembly.
	(d)	The duties of the Council shall be as set out in applicable federal law and regulations. 				
(e)	The Council shall maintain a set of guidelines and bylaws governing its functions, procedures, appointment of members, and internal organization. These guidelines and bylaws shall be updated as necessary to remain in conformity with applicable federal law."Part 6. Range of Services Available.
"§ 115C‑122.  Early childhood development program; evaluation and placement of children.
The General Assembly of North Carolina declares that the public policy of North Carolina is defined as follows to carry out the policies stated in G.S. 115C‑106:
(1)	The State shall provide for a comprehensive early childhood development program by emphasizing preventative and remedial measures designed to provide the services which will enable children to develop to the maximum level their physical, mental, social, and emotional potentials and to strengthen the role of the family as the first and most fundamental influence on child development. The General Assembly finds that the complexity of early childhood development precludes the enactment of legislation which is of a sufficiently comprehensive nature to encompass all possible implications. The Departments of Public Instruction and Health and Human Services shall, therefore, jointly develop an early childhood development program plan with flexibility sufficient to meet the State's policy as set forth in this subdivision. Said plan shall provide for the operation of a statewide early childhood development program no later than June 30, 1983.
(2)	The State requires a system of educational opportunities for all children with disabilities and requires the identification and evaluation of the needs of children and the adequacy of various education programs before placement of children, and shall provide for periodic evaluation of the benefits of programs to the individual child and the nature of the child's needs thereafter.
(3)	The State shall prevent denial of equal educational and service opportunity on the basis of national origin, sex, economic status, race, religion, and physical, mental, social or emotional disability in the provision of services to any child. Each local school administrative unit shall develop program plans to meet the educational requirements of children with disabilities and each local human services agency shall develop program plans to meet the human service requirements of children with disabilities in accordance with program standards and in a planning format as shall be prescribed by the State Board of Education and the Department of Health and Human Services respectively.
The General Assembly intends that the educational program and human service program requirements of Session Laws 1973, Chapter 1293, shall be realized no later than June 30, 1982. The General Assembly further intends that currently imposed barriers to educational and human service opportunities for children with disabilities by reason of a single standardized test, income, federal regulations, conflicting statutes, or any other barriers are hereby abrogated; except that with respect to barriers caused by reason of income, it shall be permissible for the State or any local education agency or local human services agency to charge fees for special services rendered, or special materials furnished to a child with disabilities, his parents, guardian or persons standing in loco parentis unless the imposition of such fees would prevent or substantially deter the child, his parents, guardian, or persons standing in loco parentis from availing themselves of or receiving such services or materials.
(4)	It is recognized that children have a variety of characteristics and needs, all of which must be considered if the potential of each child is to be realized; that in order to accomplish this the State must develop a full range of service and education programs, and that a program must actually benefit a child or be designed to benefit a particular child in order to provide such child with appropriate educational and service opportunities. The General Assembly requires that all programs employ least restrictive alternatives as shall be defined by the Departments of Public Instruction and Health and Human Services.
"Part 10. State and Local Relationships.
"§ 115C‑139.  Interlocal cooperation.
	The Board, any two or more local educational agencies may enter into interlocal cooperation undertakings pursuant to the provisions of Chapter 160A, Article 20, Part 1 of the General Statutes or into undertakings with a State agency such as the Departments of Public Instruction, Health and Human Services, Juvenile Justice and Delinquency Prevention, or Correction, or their divisions, agencies, or units, for the purpose of providing for the special education and related services, treatment or habilitation of such children within the jurisdiction of the agency or unit, and shall do so when it itself is unable to provide the appropriate public special education or related services for these children. In entering into such undertakings, the local agency and State department, agency, or division shall also contract to provide the special education or related services that are most educationally appropriate to the children with disabilities for whose benefit the undertaking is made, and provide these services by or in the local agency unit or State department, agency, or division located in the place most convenient to these children.
	"§ 115C‑140.  Contracts with private service‑providers.
Local educational agencies furnishing special education and related services to children with disabilities may contract with private special education facilities or service providers to furnish such services as the public providers are unable to furnish. Private providers and private facilities shall meet the standards established by the Board. 
"§ 115C‑140.1.  Cost of education of children in group homes, foster homes, etc.
(a)	Notwithstanding the provisions of any other statute and without regard for the place of domicile of a parent or guardian, the cost of a free appropriate public education for a child with disabilities who is placed in or assigned to a group home, foster home or other similar facility, pursuant to State and federal law, shall be borne by the local board of education in which the group home, foster home or other similar facility is located. Nothing in this section obligates any local board of education to bear any cost for the care and maintenance of a child with disabilities in a group home, foster home or other similar facility.
(b)	The State Board of Education shall use State and federal funds appropriated for children with disabilities to establish a reserve fund to reimburse local boards of education for the education costs of children assigned to group homes or other facilities as provided in subsection (a) of this section.
"Part 11. Rules and Regulations.
"§ 115C‑141.  Board rules and regulations.
The Board shall adopt rules and regulations for the administration of this Article. The Board shall provide technical assistance to the various concerned agencies at their request.
"Part 12. Nonreduction Provision.
"§ 115C‑142.  Nonreduction.
Notwithstanding any of the other provisions of this Article, it is the intent of the General Assembly that funds appropriated by it for the operation of programs of special education and related services by local school administrative units not be reduced; rather, that adequate funding be made available to meet the special educational and related services needs of children with disabilities, without regard to which State or local department, agency, or unit has the child in its care, custody, control, or program.
"Part 13. Budget Analysis and Departmental Funding.
"§ 115C‑143:  Repealed by Session Laws 1981 (Regular Session, 1982), c. 1282, s. 29.
"§ 115C‑144:  Repealed by Session Laws 1997‑18, s. 7.
"§ 115C‑145.  Allocation of federal funds.
At such time as any federal funds for the special education and related services for children with disabilities are made available, these funds shall be allocated according to a formula designed by the Board consistent with federal laws and regulations. 
"Part 14. Children With Disabilities, Ages Three to Five.
"§ 115C‑146.1.  Definitions.
The term 'preschool children with disabilities' includes without limitation all three- and four-year olds, and those five-year olds ineligible for kindergarten:
(1)	Who have reached their third birthday and whose parents have requested services from the public schools, which services shall start no later than the children's third birthday;
(2)	Who are not eligible to enroll in public kindergarten; and
(3)	Who, because of permanent or temporary mental, physical, or emotional disabilities, need special education and related services in order to prepare them to benefit from the educational programs provided by the public schools, beginning with kindergarten. This term includes children who are mentally disabled, specific learning disabled, behaviorally emotionally disabled, autistic, orthopedically impaired, hearing impaired, speech-language impaired, deaf-blind, traumatic brain injured, visually impaired, multihandicapped, or developmentally delayed, or other health impaired. All evaluations performed pursuant to this Part shall be appropriate to the individual child's age and development.
"§ 115C‑146.2.  Entitlement to services.
Preschool children with disabilities are entitled, at no cost to their parents or guardians, to individualized programs specifically designed to meet their unique needs for special education and related services.
"§ 115C‑146.3.  Obligation to provide services.
(a)	The General Assembly finds:
(1)	That preschool children with disabilities will benefit from the special education and related services required by this Part;
(2)	That the General Assembly has evaluated the known needs of the State and has endeavored to satisfy those needs in comparison to the social and economic problems of the State;
(3)	That the funds appropriated to serve these preschool children with disabilities are a reasonable amount to provide such children with special education and related services; and
(4)	That, therefore, (i) State funds appropriated to implement this Part are the only State funds for public schools that may be used to provide special education and related services to preschool children with disabilities; and (ii) preschool children with disabilities will continue to be served by all other State funds they are otherwise entitled to.
(b)	The State Board of Education shall cause local school administrative units to make available special education and related services to all preschool children with disabilities whose parents or guardians request these services.
(c)	State funds appropriated to implement the provisions of this Part shall be used to supplement and not supplant existing federal, State, and local funding for the public schools.
(d)	Related services provided under this Part shall be provided by qualified services providers. The term 'qualified services provider' means a person who meets State standards for licensure or State Board of Education standards for certification for a specific profession or discipline.
To the extent that the State Board of Education standards include provisions for certification that are less than the standard for certification or licensure for a specific profession, the Department of Public Instruction may certify individuals on a temporary or provisional basis, provided that the State Board of Education shall establish a comprehensive plan and reasonable time lines to ensure that only professionals who meet the appropriate standard for licensure or certification may be employed in the future.
"§ 115C‑146.4.  Rules.
The State Board of Education shall adopt rules implementing this Part, including rules necessary in order to receive federal funding pursuant to Part B of the Education of the Handicapped Act, 20 U.S.C. § 1400 et seq. These rules shall include a provision that, where a local school administrative unit finds that appropriate services are available from other public agencies or private organizations, that local school administrative unit shall, in accordance with G.S. 115C‑149, consider contracting for those services rather than provide them directly. "
SECTION 2.  Chapter 115C of the General Statutes is amended by adding the following new Article to read:
"Article 9C.
"Pregnant Children.
"§ 115C-150.13. Educational programs for pregnant children.
Consistent with the mission of the public school community to challenge with high expectations each child to learn, to achieve, and to fulfill his or her potential, each local educational agency shall establish and implement educational programs for pregnant students that enable these students to successfully complete their public school education. The State Board of Education shall adopt rules specifically to address the preparation of these educational programs. These rules shall include specific standards for ensuring that the individual educational needs of each child are addressed, homebound educational services are provided when necessary and appropriate, and data regarding pregnant and parenting students' performance, school continuation, and dropout rates are collected and retained for use in developing programs for this population."
SECTION 3.  There is appropriated from the General Fund to State Aid to Local School Administrative Units the sum of five hundred thousand dollars ($500,000) for the 2001‑2002 fiscal year to implement this act.
SECTION 4.  This act becomes effective July 1, 2001.