Section 1.1

Establishes a fifteen-member NC High School Redesign Commission (Commission), located administratively in the Department of Public Instruction (DPI) to explore and recommend changes to policies and systems governing high school and higher education that will better prepare North Carolina students for success as they transition to higher education or the workforce. Provides for the appointment of members, including four members from named nonprofits, a chair, meetings, terms, and vacancies. Tasks the Commission with examining promising practices in North Carolina and nationally to inform the Commission's recommendations, including the twelve specified. Tasks the chair with designating nonprofit members to plan meetings and providing staff. Instructs that funds appropriated to DPI to be used to contract with one or more organizations to plan and manage Commission meetings pursuant to the act will be divided equally among the organizations designated by the chair unless otherwise agreed by the chair and all designated organizations. Starting on April 30, 2027, requires the Commission to submit an annual report to the specified NCGA committee, including all recommendations approved by a majority of its members and the described summaries. Sunsets the Commission on the earlier of June 30, 2031, or upon the filing of its final annual report.

Section 1.2

Appropriates $3.6 million for 2026-27 from the General Fund to the Department of Public Instruction (DPI) to be allocated as a directed grant to the SME Education Foundation to create a pilot program for 2026-27 and 2027-28 school years for 10 high schools to receive equipment, curriculum, professional development, scholarships, and STEM-focused extracurricular activities for students and teachers that align with the SME Prime (Partnership Response in Manufacturing Education) Program. Specifies that funds do not revert and will remain available until the end of the 2027-28 fiscal year.

Section 1.3

Enacts new GS 115C-438.1 requiring DPI to create a procedure for reviewing monthly expenditures by local school administrative units from specific State-funded dollar allotments beginning with October of each school year. Requires local school administrative units that have expended more funds than allotted from a specific allotment to remit payment of the amount overexpended to DPI; requires that the State Board of Education (State Board) exercise its oversight authority when payment is not remitted for more than 60 days. Requires DPI, to the extent practicable, to conduct monthly audits of local school administrative unit State-funded position allotments to ensure compliance with GS Chapter 115C. Requires DPI to take action when a local school administrative unit is out of compliance.

Section 1.4

Changes the school year by which the Board must conduct a review of the operation and student performance of the local school administrative unit operating under an approved renewal school system plan under Section 6 of SL 2018-32 from the 2022-23 school year to the 2028-29 year and extends the followup review obligation from every three years after to every five years. Removes the four listed prongs of information (assessment instruments, described vacancies, student absences, and anything else deemed necessary) that a local school unit must annually report to the superintendent of DPI. Now requires those units submit those annual reports on five matters, including proficiency data on each end-of-grade or end-of-course exam, EVAAS growth data for the local school administrative unit, high school graduation rates, and chronic absenteeism. Authorizes local school administrative units operating under a renewal school system plan to use an alternative evaluation model to the North Carolina Educator Evaluation System (NCEES) when evaluating teacher effectiveness. Directs the NC Collaboratory to study the effect of the Renewal School System on student outcomes, with an analysis of how financial and personnel flexibilities permitted under a renewal school system plan have been utilized. Requires the NC Collaboratory to report its results to the specified NCGA committee by January 15, 2028.  Makes conforming changes.

Section 1.5

Expands the advanced courses to be offered by local boards of education when practicable to include English Language Arts courses under GS 115C-81.36. Makes conforming changes, including automatic enrollment in advanced learning opportunities for the next school year when a student scores at the highest level on the corresponding end-of-grade test. Requires that a parent or guardian wanting to remove a student from the advance learning opportunities or advanced courses be first given notice that the student's placement was determined by their achievement on the previous end-of-grade or end-of-course test. Specifies that the submission date for the annual report submitted by the Department of Public Instruction (DPI) to the specified NCGA committees is December 15, and requires DPI to include data on socioeconomic status collected for the current school year, as described. Makes technical, conforming, and organizational changes. Applies beginning with the 2026-27 school year.

Section 1.6

Adds new Part 12, Experiential Learning, to Article 16 of GS Chapter 115C, providing as follows. Sets out the purpose as allowing public school units to work with eligible partners to develop nontraditional, student-driven pathways through which students may select and complete Learning Accelerators. Defines Learning Accelerators as modular learning experiences focused on science, technology, engineering, and mathematics (STEM), that, when aggregated, will provide competency-based equivalency to traditional elective course credit.

Requires partners to be able to provide a menu of modular learning experiences that include opportunities for work-based learning. Requires public school units to enter into a memorandum of understanding with an eligible partner to establish certain requirements for the Learning Accelerator program and sets out four items that must be included in those requirements related to staffing, qualifications and standards for learning lab facilitators, facilitator’s duties, and operating schedule.

Allows contracting with additional nonlicensed personnel to provide timely, real-world content, industry expertise, and student learning experiences as part of the program.

Requires that public school units award elective credit in a Learning Accelerator to any student who completes a combination of learning experiences determined by the eligible partner to provide the competency-based equivalent of an elective credit in that course upon verification of successful completion of the learning experiences and integrity of student work products by the learning lab facilitator. Sets out additional parameters governing the award of course credit, including allowing a student to earn up to four credits in Learning Accelerators.

Limits the use of State funds provided to a public school unit for the program to salaries and benefits of learning lab facilitators or hiring contract personnel. Requires the State Board, to the extent funds are made available, to establish a funding allotment for the program learning lab facilitator positions, with funds allocated to provide one facilitator to each local school administrative unit.

Requires DPI to report annually to the specified NCGA committee on specified information about the program, disaggregated for each public school unit by grade level and school.

Appropriates $8,855,000 in recurring funds for 2026-27 from the General Fund to DPI to administer the Learning Accelerator learning lab facilitator allotment.

Specifies that SparkNC, Inc., is an eligible partner and appropriates $6.5 million in recurring funds for 2026-27 from the General Fund to DPI to be allocated as a grant to SparkNC, Inc., for administrative costs associated with being an eligible partner.

Appropriates $5,780,000 for 2026-27 from the General Fund to DPI to be allocated as a  directed grant to SparkNC, Inc., for start-up costs associated with expanding to provide services in additional schools, with the goal of providing services statewide. Specifies that funds remain available until June 30, 2029.

Effective July 1, 2026, and applies beginning with the 2026-27 school year.

Section 1.7

Adds new Part 7A, Extending Learning and Integrated Student Supports Grant Program, in Article 16 of GS Chapter 115C, providing as follows.

Establishes the Extended Learning and Integrated Student Supports Grant Program (Program). Allows nonprofit corporations and nonprofit corporations working in collaboration with local school administrative units operating relevant programs to apply for the Program. Sets out the Program’s purpose as funding high-quality, independently validated extended learning and integrated student support service programs for at-risk students that raise standards for student academic outcomes by focusing on the eight specified areas, including use of an evidence-based model with a proven track record of success, minimizing class size when providing instruction or instructional supports and interventions, and using digital content to expand learning time. Requires DPI to administer the Program in each year in which sufficient funds are available. Requires DPI to use up to $7 million from the At-Risk Student Services Alternative School Allotment each fiscal year to fund the Program; allows using up to $200,000 for administration expenses.

Allows grants to be used to award funds for new or existing eligible programs for at-risk students operated by nonprofit corporations and nonprofit corporations working in collaboration with local school administrative units. Requires a focus on serving: (1) at-risk students not performing at grade level as demonstrated by statewide assessments, (2) students at risk of dropout, and (3) students at risk of school displacement due to suspension or expulsion as a result of antisocial behaviors. Gives priority to models that focus services and programs in schools that are identified as low-performing. Limits grant to up to two years in an amount up to $500,000 each year. Sets out a matching requirement of $3 in grant funds for every $1 in nongrant funds.

Requires grant recipients to report annually to DPI on the expenditure of funds and the progress of the Program, as well as a final report with the specified information. Requires DPI to report annually on the Program to the specified NCGA committee.

Effective July 1, 2026, and applies beginning with the 2027-28 school year.

Section 1.8

Enacts new GS 160D-917 to require zoning regulations to allow siting school buildings primarily used for instructing students that are under the control of a public school unit in areas zoned for commercial use.

Section 1.9

Appropriates $43.3 million in recurring funds beginning in 2026-27 from the General Fund to DPI to be allocated to public school units participating in the Advanced Teaching Roles program to provide salary supplements.

Appropriates $4 million in recurring funds beginning in 2026-27 from the General Fund to DPI to expand the Advanced Teaching Roles grant program. Requires for 2026-27 that grant priority be given to public school units that qualified for a grant in 2025-26 but did not receive it due to insufficient funding. Effective July 1, 2026.

Section 1.10

Requires the State Board to establish the Teacher Evaluation Pilot Program (Program) for 2026-27 through 2029-30. Sets the purpose as establishing a robust set of meaningful teacher professional evaluation tools that support improved teacher professional development, providing opportunities for career advancement for teachers, providing additional insights for accountability for educator preparation programs, and facilitating licensure renewal.

Requires that the State Board, in consultation with listed entities, select by March 15, 2027, at least three professional evaluation tools for use by the local school administrative units, with tools required to meet the specified requirements. Allows local school administrative units to apply to participate in the Program and requires selecting units to participate beginning in the 2027-28 school year and ending in the 2029-30 school year. Allows participating in more than one school year. Allows participants to use one or more of the Professional Evaluation Tools selected by the State Board to determine proficiency for a teacher to maintain their current license status.

Requires the Board to report on the listed items to the specified NCGA committee.

Appropriates $6 million for 2026-27 from the General Fund to DPI to implement the Program. Specifies that the funds remain available until June 30, 2030.

Section 1.11

Requires the State Board to conduct an expedited revision of the NC Standard Course of Study for Healthful Living, Grades K-12 standards to be adopted and implemented beginning with the 2028-29 school year. Requires the revised standards to include standards on: (1) mental health awareness; (2) common mental health conditions, such as anxiety, depression, and trauma, and their warning signs; (3) help-seeking strategies for self and peers, including school and community resources; (4) the neurological basis of addiction; (5) the risks of alcohol, nicotine and vaping, cannabis, opioids, misuse of prescription drugs, and other illicit substances; (6) the relationship between mental health and substance abuse; (7) treatment, recovery, and prevention of mental health disorders, including reducing the stigma surrounding mental health disorders; (8) the effects of social media and other environmental influences on mental health and addictive behavior; and (9) protective factors, coping skills, and sound decision making.

Requires DPI to report on listed issues on the standards to the specified NCGA committee by December 15, 2028.

Section 1.12

Adds new Article 42 to GS Chapter 115C, providing as follows. Enacts GS 115C-650, establishing the AI Instructional Support Program (program). Authorizes public school units to contract with Khan Academy Inc. for use of academic support service Khanmigo, in grades six through twelve, for one-year terms. Describes Khanmigo services. Directs funds be allocated to each unit that decides to participate based on average daily membership and limits units' use of funds to contracting with Khan Academy for the described permitted purposes. Before subsequent contracts may be entered, requires units to perform specified evaluations using six identified data points on the use of the contracted services at the end of the school year. Requires units to submit their evaluations to the Department of Public Instruction (DPI) by July 15 of each year funds are used. Establishes class rostering system requirements for managing access to digital instruction resources and student information systems, and facilitating automated data integration between educational applications and school district systems. Requires DPI approval of class rostering systems. Requires DPI to contract with Khan for 500 Khanmigo licenses for use in schools operated by the Division of Juvenile Justice of the Department of Public Safety (Division). Directs DPI to provide technical support to the Division and requires the Division to comply with contract evaluation requirements in the same manner as public school units. Directs the Office of Learning Research (OLR) at the NC Collaboratory to conduct a study and report to the specified NCGA committee by April 1, 2028, regarding the effectiveness of using Khanmigo. Sets forth directives for the aggregation of evaluation reports and student performance data to be studied. Directs DPI to annually report eight data points to the specified NCGA regarding funds used under the program. 

Appropriates $10,060,560 in recurring funds to DPI for 2026-27 to allocate funds pursuant to new GS 115C-650. 

Section 1.13

Changes the title of Article 17D of GS Chapter 115 from Educator Preparation Programs to Educator Preparation. Reorganizes the Article into Parts. Recodifies GS 115C-269.31 as GS 115C-269.75 and GS 115C-269.32 as GS 115C-269.77. Makes conforming changes to GS 115C-269.5, GS 115C-269.10, GS 115C-269.45, and GS 115C-269.55.

Adds the following to Part 2 of Article 17D.

Establishes the TeachReadyNC Program to increase the number of professionally licensed teachers in the state and improve teacher competency, student outcomes, and teacher retention in the state. Requires DPI to administer TeachReadyNC in collaboration with ApprenticeshipNC. Requires DPI to issue, by November 1 each year, a request for applications from eligible units to participate in TeachReadyNC, beginning in the subsequent school year. Defines eligible unit as a local school administrative unit that is an Advanced Teaching Roles unit. Sets out required content for the applications.

Requires DPI to review applications for participation in TeachReadyNC every three months of each school year following the issuance of the request for applications. Applications are to be approved on a rolling basis for a term of three years as long as the application includes a clear strategy to support apprenticeships that complies with the set requirements. Requires participating units to: (1) be recognized as a registered teacher apprenticeship program under requirements established by the United States Department of Labor; (2) require each apprentice to work full-time in a classroom with an apprentice supervisor; (3) ensure that each apprentice meets the specified requirements related to education, licensing, and teaching; (4) provide each apprentice with the specified annual compensation and financial support for attending an eligible educator preparation program; and (5) provide salary supplements for each apprentice supervisor and each teacher who agrees to become a teacher of record for additional students because of the emergency position conversion allowed under the statute. Sets out the conditions under which a participating unit may be allowed to renew its term in TeachReadyNC.

Allows a participating unit to convert one position allocated to the participating unit for classroom teachers to its dollar equivalent at the salary on the first step of the "A" Teachers Salary Schedule, including benefits, for each apprentice employed by the unit. Funds made available may be used for: (1) salaries for apprentices, (2) annual salary supplements of up to $5,000 for each teacher accepting additional students as a result of an emergency position conversion occurring pursuant to this subsection, (3) the permitted purposes and maximum amounts identified in GS 115C-269.69(b).

Allows, to the extent funds are appropriated for TeachReadyNC, DPI to retain a certain amount for administration of the program. Allows DPI to establish new positions to support the program. Sets out additional DPI duties for the program.

Requires DPI, in consultation with Apprenticeship NC, to report annually to the specified NCGA committee on the current state of TeachReadyNC, including the specified information.

Requires DPI to allocate grant funds, to the extent funds are appropriated, to participating units each fiscal year for each apprentice position. Sets out steps to be taken if there are insufficient funds. Set out limits on the maximum amount of grant funds that can be used on annual salary supplements, program attendance costs, and salary supplements. Provides that funds awarded to a participating unit do not revert and remain available until October 1 of the subsequent fiscal year.

Amends GS 115C-269.25 by requiring the EEP annual reports reported to the State Board to also include specified information on apprentices.

Appropriates $1 million for 2026-27 from the General Fund to DPI to be awarded as grants under the TeachReadyNC program.

Effective July 1, 2026.

Requires DPI to issue the initial request for applications for the TeachReadyNC Program by November 1, 2026, for applications to establish registered teacher apprenticeship programs beginning in the 2027-28 school year. Requires DPI to provide its initial report on the impact of the TeachReadyNC Program by March 15, 2028.

Section 2.1

Establishes the Community College Seamless Skills Initiative (Initiative) to create a CBE model that seamlessly connects high school and community college, as described. Instructs Fayetteville Technical Community College (FTCC) and Wilkes Community College (WCC) to partner to implement the duties of the Initiative. Specifies seven project goals. Provides for a digital wallet as described. Tasks the Community Colleges System Office (Office) with providing ongoing technical support to community colleges participating in the Initiative. Appropriates $3.75 million from the General Fund to the Office for 2026-27 to be allocated to FTCC and WCC for the Initiative, as described. Specifies that the appropriated funds will not revert and will remain available to WCC until the end of 2029-30.

Section 2.2

Establishes the Competency-Based High School and Healthcare and High-Tech Pathways Program (Pathways Program) to create pathways that will utilize competency-based education (CBE). Specifies that pathways will result in obtaining either an associate degree or an industry recognized credential/certification/licensure based on the student's goal of employment or enrollment. Students will decide their college or career track at the end of their junior year with an initial emphasis on healthcare preparation. Instructs Mooresville Graded School District (MGSD) to partner with Mitchell Community College (MCC) to implement the Pathways Program. Establishes a timeline for the Pathways Program. Offers five described flexibilities to the Pathways Program, including permitting MGSD to offer Credit by Demonstrated Mastery assessments and CTE Proof of Learning assessments outside of existing State testing windows and allowing participating students to have access to all community college courses at MCC, regardless of pathway selection. Requires MGSD to partner with a selected a third-party vendor (Vendor) that is an educational support provider as described to develop standards-aligned proficiency scales for all content areas in grades nine through 12 to ensure educators in the participating schools have the tools necessary to successfully transition to CBE approaches. Appropriates $4 million for 2026-27, which would not revert but instead remain available until the end of 2028-29. Allocates the funds to MGSD for three specified purposes, including to contract with experts in CBE and designing stackable credentials.

Section 2.3

Establishes the Lighthouse Match Project (LMP) to increase the percentage of high school students who are (1) eligible to complete college level mathematics upon graduation from high school and (2) able to complete college level math either through dual enrollment while in high school or within the first year of college enrollment. Directs Wake Technical Community College (Wake Tech) to partner with the Wake County Public School System (WCPSS) for high school students at the two named schools to be eligible to participate in LMP at the Wake Tech East campus of Wake Tech. Instructs Wake Tech and WCPSS to partner with SparkNC to align LMP participants' ongoing efforts at the Wake Tech East campus with the design and implementation of LMP. Directs WCPSS, in collaboration with Wake Tech, to contract with Khan Academy Inc. (Khan) for use of the artificial intelligence student tutoring program Khanmigo for the purposes described. Requires Khan, in consultation with Wake Tech and WCPSS, to work to develop a self-paced, competency-based modular math course with appropriate student diagnostics and student assessments based on the college readiness math competencies provided as part of LMP. Appropriates $500,000 from the General Fund to DPI for the 2026-27 fiscal year to contract with Khan for the licenses for the Khanmigo application and to create the course developed as described above. Provides that the appropriated funds will not revert but remain available to accomplish the appropriated purposes until the end of the 2026-27 year. Appropriates $1 million from the General Fund to the Community Colleges Systems Office (Office) for 2026-27 to be used to establish time-limited positions at Wake Tech, as described. Provides that the appropriated funds will not revert but remain available to accomplish the appropriated purposes until the end of the 2029-30 fiscal year.

Section 2.4

Requires the Mooresville Graded School District, Mitchell Community College, Wake Technical Community College, Wake County Public School System, Fayetteville Technical Community College, Wilkes Community College, and SparkNC to collaborate to create a Competency-Based Education and High School Redesign Strategic Network (Network) and requires the Network to provide a way for each entity to share what it has learned and developed regarding CBE and high school redesign. States the goal of advancing the goals of developing a CBE approach to education across the state.

Section 2.5

Establishes the North Carolina Competency-Based Education Innovation Grant and Network Program (Program) to provide funding and support to schools and districts to support the transition to competency-based education (CBE) models that focus on mastery of learning rather than instructional time. Provides that the grant aims to promote innovative instructional practices, flexible assessment models, and systemic shifts to ensure all students progress based on demonstrated proficiency. Sets out Program objects related to redesigning learning pathways, assessment innovation, educator capacity building, and developing strategies for statewide scaling and best practices.

Requires the first phase of the Program begin with the 2026-27 school year and continue until the end of the 2029-30 school year. Sets out application timing and content requirements.

Sets grant awards at $330,000 to each participating school, which must use $95,000 each school year on training on implementing CBE in the school, with reaming funds used for costs associated with the transition to CBE. Specifies that grant funds remain available until the end of the 2029-30 fiscal year.

Requires DPI to select a third-party vendor that meets the specified criteria. Requires working with the vendor to develop publicly available, standards-aligned proficiency scales for all content areas and grade levels. Requires the vendor to provide annual professional development events throughout the state to ensure educators can engage in learning about CBE approaches.

Requires DPI to develop, in collaboration with the vendor, a CBE Network to support long-term transition to CBE and provide support and technical assistance, professional learning opportunities, and access to the CBE network for all grant recipients.

Requires participating schools to submit quarterly progress reports to DPI on implementation of CBE in the school. Requires DPI to submit a final report on the outcomes of Phase One of the Program to the specified NCGA committee by December 1, 2030; sets out what must be included in the report.

Appropriates $5.3 million from the General Fund to DPI to implement this section; specifies that funds remain available until the end of the 2029-30 fiscal year.

Section 2.6

Requires the Office of Learning Research at the North Carolina Collaboratory to study and evaluate the programs and initiatives established in Part II of the act and report to the specified NCGA committee by March 15, 2028, and annually thereafter, culminating in a final report on March 15, 2031, to include at least the three specified matters. Appropriates $450,000 from the General Fund to the Board of Governors of The University of North Carolina for the 2026-27 fiscal year to be allocated to the North Carolina Collaboratory for the Office of Learning Research to conduct the study and evaluation.

Section 3

Effective July 1, 2026, except as otherwise provided.