A BILL TO BE ENTITLED
AN ACT TO PROVIDE ENROLLMENT PRIORITY AND PERMIT BOARD MEMBERSHIP FOR CORPORATE PARTNERS OF CHARTER SCHOOLS.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 115C‑218.45 reads as rewritten:
"§ 115C‑218.45.  Admission requirements.
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(f)	The charter school may give enrollment priority to any of the following:
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(7)	Limited to no more than fifty percent (50%) of the school's total enrollment, children of permanent employees of a corporate partner in accordance with subsection (f1) of this section. If the number of applications from these children exceed fifty percent (50%) of the school's total enrollment, these children shall be accepted by a separate lottery.
(f1)	For purposes of this section, a corporate partner is any legal entity authorized to transact business in this State under Chapter 55, 55A, 55B, 57D, or 59 of the General Statutes and that has, acting individually or as part of a consortium of corporations, donated one or more of the following to the charter school:
(1)	The land on which the school is built.
(2)	The school building or the space the school occupies. If the corporate partner is leasing the building or space to the school, the charter school may only give enrollment priority if the lease provides that the building or space is made available without cost and if the term of the lease is not less than the duration of the charter.
(3)	Major renovations to the existing school building or other capital improvements, including major investments in technology. For purposes of this subdivision, a major renovation to the existing school building means changes that provide significant opportunities for substantial improvement, including, but not limited to, a structural change to the foundation, roof, floor, or interior or exterior walls or extension of an existing facility to increase its floor area; or an extensive alteration of an existing facility, such as a change in its function or purpose, even if such renovation does not include any structural change to the facility. A major investment in technology includes, but is not limited to, a donation of hardware, software, Internet access, Internet hardware, enterprise systems, software licenses, smart board technology, or audiovisual equipment. The value of a major renovation or of an investment of technology shall be equal to at least fifty percent (50%) of the State's per pupil allocation for charter schools for that year multiplied by the charter school's average daily membership.
(f2)	Each year that the charter school provides the corporate partner with enrollment priority, as described in subdivision (7) of subsection (f) of this section, the corporate partner and the charter school shall enter into a memorandum of understanding that shall specify the duration of the priority and the methods by which the corporate partner shall support the charter school, including, but not limited to, internships for students, career counseling, academic tutoring, or enrichment activities.
(f3)	The enrollment priority described in subdivision (7) of subsection (f) of this section shall not be implemented in a way that displaces students who are enrolled at the school at the time the charter application or the material revision providing for the priority is approved by the State Board of Education.
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SECTION 2.  G.S. 115C‑218.1(b) is amended by adding a new subdivision to read:
"(16)	Whether the charter school intends to provide enrollment priority to the children of a corporate partner and, if so, identifying information for that corporate partner."
SECTION 3.  G.S. 115C‑218.7 is amended by adding a new subsection to read:
"(e)	Adoption of the enrollment priority described in G.S. 115C‑218.45(f)(3)c. shall be considered a material revision of the charter."
SECTION 4.  G.S. 115C‑218.15 is amended by adding a new subsection to read:
"(b1)	Persons affiliated with a corporate partner, as defined in G.S. 115C‑218.45(f1), are eligible for membership on the board of directors of a charter school that provides enrollment priority to corporate partners, subject to the requirements of subsection (b) of this section, as follows:
(1)	Persons affiliated with the corporate partner shall not constitute a majority of the board.
(2)	If the corporate partner is leasing the building or space to the school, the lease shall provide that the building or space is made available without cost and the term of the lease shall not be less than the duration of the charter."
SECTION 5.  This act is effective when it becomes law and applies beginning with the 2017‑2018 school year.