TIMELY LOCAL PAYMENTS TO CHARTER SCHOOLS.

View NCGA Bill Details2021
House Bill 335 (Public) Filed Wednesday, March 17, 2021
AN ACT TO REVISE REQUIREMENTS REGARDING THE TRANSFER OF FUNDS FROM A LOCAL SCHOOL ADMINISTRATIVE UNIT TO A CHARTER SCHOOL TO INCENTIVIZE THE TIMELY TRANSFER OF FUNDS.
Intro. by Bradford, Riddell, Hardister, Saine.

Status: Ch. SL 2021-79 (Jul 8 2021)

Bill History:

H 335/S.L. 2021-79

Bill Summaries:

  • Summary date: Jul 8 2021 - More information

    AN ACT TO REVISE REQUIREMENTS REGARDING THE TRANSFER OF FUNDS FROM A LOCAL SCHOOL ADMINISTRATIVE UNIT TO A CHARTER SCHOOL TO INCENTIVIZE THE TIMELY TRANSFER OF FUNDS. SL 2021-79. Enacted July 8, 2021. Effective July 8, 2021, and applies beginning with the 2021-22 school year. 


  • Summary date: Jun 22 2021 - More information

    Senate amendment to the 5th edition makes the following changes. Reduces the late fee set forth in GS 115C-218.105 from 5% to 3% applicable to the full amount of the per pupil share of the local current expense fund not transferred to charter schools within 15 days.


  • Summary date: Jun 16 2021 - More information

    Senate committee substitute to the 4th edition amends the bill as follows:
    (1) Makes the 5% late fee in G.S. 115C-218.105 applicable to the full amount (as opposed to the undisputed amount) of the per pupil share of the local current expense fund not transferred to charter schools within 15 days;
    (2) Adds the provision that local school administrative units are not subject to late fees and interest on the per pupil share of the local current expenditure fund charter schools are not entitled to under GS 115C-218.105(c) or on the per pupil share of the local current expenditure fund for students whose information on the enrollment verification and transfer request documentation is materially incorrect;
    (3) Clarifies that the local school administrative unit has an additional 30 days to transfer the per pupil share of the local current expenditure fund in any month in which a charter school fails to provide the required information in the enrollment verification and transfer request documentation;
    (4) Adds date of charter enrollment, date of charter withdrawal, and district of residence to the information required in the charter enrollment and transfer request documentation; and
    (5) Adds a provision expressly permitting local school administrative units to delay the transfer of disputed amounts of the per pupil share of the local current expenditure fund requested by charter schools.


  • Summary date: Apr 1 2021 - More information

    House amendment makes the following changes to the 3rd edition.

    Amends proposed GS 115C-218.105(c1), which provides for a 5% late fee on undisputed amounts of the per pupil share of the current expense fund not transferred or postmarked within 15 days of an administrative unit's receipt of notice from a charter school that the required per pupil share has not been transferred. Now specifies that the late fee only applies if the administrative unit has received written notice directed to the superintendent and school finance officer from the charter school. 


  • Summary date: Mar 31 2021 - More information

    House committee substitute makes the following changes to the 2nd edition.

    Amends GS 115C-218.105(c) by amending the provisions governing the 5% late fee charged to a local school administrative unit, to specify that the fee is charged on the undisputed amount and is charged if monies are not electronically transferred, or if mailed, not postmarked within 15 days of notice from the charter school (was, charged if not transferred within 15 days of receiving notice from a charter school without specifying differences in time calculation based on delivery method). 


  • Summary date: Mar 30 2021 - More information

    House committee substitute makes the following changes to the 1st edition.

    Deletes the proposed changes to GS 115C-218.105 and replaces them with the following. Now revises the requirements of GS 115C-218.105(c) to require the local school administrative unit in which a child is enrolled in a charter school to transfer the per pupil share amount of the local current expense fund to the charter school within 30 days of the later of (1) the receipt of monies into the local current expense fund, or (2) the receipt by an administrative unit of the enrollment verification and transfer request document as provided under new subsections (c2) and (c3) from the charter school (was within 30 days of receipt of the monies). Requires charter schools to send enrollment verification and transfer request documents on a monthly basis. Requires transfer of the per pupil share of any additional monies received in the local current expense fund after the initial transfer within 30 days of receipt. 

    Enacts new subsection (c1), requiring the administrative unit to pay a late fee of 5% if monies are not transferred within 15 days of receiving notice from a charter school that the per pupil share of the local current expense fund has not been transferred as required by subsection (c). Provides for interest on the amount owed to accrue at 8% annually until the transfer is made. Grants administrative units an additional 30 days to make the transfer if the charter school fails to send the enrollment verification and transfer request document with the information required by new subsection (c2).

    Enacts new subsection (c2), directing the Superintendent of Public Instruction (Superintendent) to create a standardized enrollment verification and transfer request document that charter schools must use to request per pupil shares of the local current expense fund of administrative units. Requires consultation with charter schools and administrative units. Restricts information charter schools are required to provide, as specified. Allows charter schools to take further steps to confirm residency in a particular administrative unit at its discretion. 

    Enacts new subsection (c3), directing the Superintendent to create a standardized procedure that administrative units must use when transferring the per pupil share of the local current expense fund to charter schools, requiring electronic transfer to the extent practicable.

    Amends subsection (c4), as organized, to prohibit the administrative unit from delaying the transfer of an undisputed amount in the event the administrative unit and the charter school disagree on the amount owed to the charter school. 

    Maintains that the act applies beginning with the 2021-22 school year.


  • Summary date: Mar 17 2021 - More information

    Revises the requirements of GS 115C-218.105 to require the local school administrative unit in which a child is enrolled in a charter school to transfer the per pupil share amount of the local current expense fund to the charter school following the receipt of monies into the fund and within 30 days of receipt of a written request from the charter school identifying the student(s) enrolled (was within 30 days of receipt of monies). Increases the sum to be transferred by 8% if the unit fails to transfer the share to the charter school within 30 days, with interest accrued at the legal rate until the total amount, including the applicable increases, is transferred to the charter school. Requires transfer of the per pupil share of any additional monies received in the local current expense fund after the initial transfer within 30 days of receipt. Prohibits delaying payment of undisputed amounts in the event of a dispute the unit and charter school disagree on the amount owed to the charter school. Applies beginning with the 2021-22 school year. 


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