Senate committee substitute deletes the provisions of the 1st edition and now provides the following.

Part I repeals Section 8.33(b) of SL 2016-96 (intends SL 2016-94), which required class size requirements in kindergarten through third grade to remain unchanged in the 2016-17 school year, and required the class size requirements set forth in GS 115C-301, as amended by SL 2016-96, to apply beginning with the 2017-18 school year. 

Instead, sets forth the following phases pertaining to class size requirements. Establishes that the average size for kindergarten through third grade in a local school administrative unit for the 2017-18 school year is not to exceed 20 students. Provides that at the end of the second school month and for the remainder of the school year, the size of an individual class in kindergarten through third grade is not to exceed 23 students. Establishes that the class size requirements set forth in GS 115C-301, as amended by this act, apply beginning with the 2018-19 school year. 

Part II 

Amends GS 115C-301 (Allocation of teachers; class size) as follows. 

Amends subsection (f) to provide for biannual reports by each local board of education, through the superintendent and based on information provided by the principal, for each school within the local school administrative unit filed with the Superintendent of Public Instruction (currently, one report required at the end of the second month of each school year concerning the organization of each school and a February report concerning exceptions to class size maximums, both currently filed with the State Board of Education). Requires the following information pertaining to the organization for each school in the unit to be contained in the biannual reports: (1) for each class in each grade level, the duties of the teacher, the source of funds used to pay the teacher, and the number of students assigned to the class (including all exceptions to class size maximums in kindergarten through third grade); (2) for each school, the number of program enhancement teachers and the source of funds used to pay each program enhancement teacher; and (3) any other information the Superintendent of Public Instruction (Superintendent) may require. Defines program enhancement teachers as teachers who teach arts disciplines, physical education and health programs, or world languages. Directs the Superintendent to conduct periodic audits of the information reported by the local school superintendent to confirm the accuracy of reporting at both the local school administrative unit and school level of the average and individual class size for students in kindergarten through third grade. Authorizes the State Board of Education (State Board) to impose the penalty set out in subsection (j) (withholding state funds allocated for the local superintendent's salary during the period of willful noncompliance with the statute) if the Superintendent finds that a local board is exceeding class size requirements without application to the State Board for an allotment adjustment or a waiver until the local board receives a waiver or the schools in the unit meet the class size requirements for kindergarten through third grade.

Amends subsection (g) to require the State Board to report on all waivers to the Joint Legislative Commission on Governmental Operations within 30 days of the grant of the waiver. Details the required contents of the report. Adds that a waiver for excess in class size in kindergarten through third grade is not effective until the State Board submits the report to the Joint Legislative Commission. Requires the local board of education, upon notification from the State Board that the reported exception does not qualify for an allotment adjustment or a waiver, to take action to correct the exception within 30 days. Adds that, within 60 days of notification by the State Board, the Superintendent must request an updated report from the local board of education on the size of each class in kindergarten through third grade for each school within the local unit. Authorizes the State Board to impose the penalty set out in subsection (j) if the Superintendent finds that a local board is continuing to exceed class size requirements until the schools in the unit meet the class size requirements for kindergarten through third grade.

Amends subsection (j) to require a local superintendent to complete a sworn affidavit attesting that the superintendent has complied with the requirements of subsections (c) through (g) of the statute, and include that affidavit with the biannual reports on individual class size as required by subsection (f), as amended. 

Makes conforming changes to GS 115C-47(10) concerning the responsibility of local boards of education to assure that the class size requirements set forth in GS 115C-301 for kindergarten through third grade are met. 

Part III provides that the act applies beginning with the 2017-18 school year. 

Makes conforming changes to the long title.