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

Amends the act's short and long titles.

Amends the act's whereas clauses.

Makes the title of the act and the definitions set out in Section 2 applicable to the entire act. Amends the definitions in Section 2 by: (1) adding and defining the term child care facility; (2) deleting the terms Director and Secretary; (3) amending the definition of school so that it now means a public school under the direction of a local board of education, a charter school, a regional school, a high school operated as part of UNC, a school operated by the Department of Health and Human Services, or a school operated by the State Board of Education permitted in accordance with either GS 153A-357 or GS 160A-417, on or before January 1, 1987; (4) adding and defining the term standard action level as the federal standard action level for lead, which is 15 parts per billion; and (5) amending the definition of technical guidance to also include guidance for testing the level of lead in drinking water issued by the specified entities. 

Now requires child care facilities, in addition to schools, to test drinking water outlets for lead in accordance with the criteria and timelines set out in the act. Makes conforming changes. Adds 11 criteria that must be met by schools and child care facilities in testing drinking water outlets and other locations within or outside the building for the presence of lead. The criteria includes: all drinking water outlets located within the kitchen and any other food preparation area, all classroom combination sinks and drinking water fountains, and any sink known to be or visibly used for consumption. Adds the Division of Public Health (Division) and the Department of Environmental Quality (Department) to those entities that may assist a school or child care facility with compliance. 

Deletes the previous testing, reporting, and notification requirements, to now require the following. Requires each school and child care facility to sample and test drinking water for the presence of lead in drinking water outlets and other locations inside or outside of the building with sampling and testing beginning no earlier than February 1, 2017, and concluding no later than April 1, 2017. Requires the lab to report test results to the Division and each school or facility within 10 business days of completing the analysis of each drinking water sample, and in any case, no later than April 15, 2017. Specifies what must be included in the lab report. Requires the Division, in consultation with the Department of Public Instruction and the Division of Child Development and Early Education, to establish criteria for the labs to use in order to report the results of the analysis that include at least the four required items. Requires the school or facility to make the test results publicly available for free, and notify the parents or guardians of the children attending the school or facility within 10 business days of receiving the results of the drinking water analyses.

Amends the actions that must be taken when elevated lead levels are found to also require that access be restricted to similar drinking water outlets located on the same wing or floor of the building of the outlet with elevated lead levels, in addition to restricting access to the outlet with the elevated lead level. No longer requires both the Department and Division to find that the drinking water is safe before ceasing to provide alternate drinking water supplies; now requires the Division to make the determination and provide written documentation to the Department and other entities.  

Requires a second test to be conducted immediately, or as soon a practicable, but no more than five business days after receiving the elevated lead test result. Requires the lab to report the results of the subsequent test as soon as practicable, but no later than five business days after completing the analysis. Requires the written notice to be provided to the teachers, school personnel, and parents and guardians within one day of the test confirming the elevated lead level. Makes clarifying changes to the content that must be included in the notice. Adds the requirement that the school or facility determine the source of the lead and work with the Division, Department, Department of Public Instruction, and the Division of Child Development and Early Education to identify corrective action. Requires all corrective action to be taken within 12 months of receipt of the confirmatory test results.

Requires the technical guidance to be developed by the Division in consultation with the Department, instead of by the two entities. Makes conforming changes. 

Amends the reporting requirements to now instead require the following. Requires within five business days of receipt that all test results confirming elevated lead levels be reported to the specified chairs of General Assembly committees related to education, health and human services, and agriculture and environment and the Fiscal Research Division. Requires a report to those same entities on the implementation of the act and the test results by May 1, 2017. Specifies what is to be included in the report.

Deletes the exemption for schools that are on public water systems.

Adds the requirement that the Division coordinate with the NC Government Data Analytics Center to assist the Division with the development and implementation of a database and reporting infrastructure necessary to support the testing, reporting, and notification requirements. 

Requires the Department and Division of Public Health to provide the specified information to the Department of Public Instruction, the Division of Nonpublic Education, and each public and nonpublic school in the state within 15 business days of the effective date of the act. Amends the required technical and advisory assistance.  

Deletes Section 6 of the previous edition, which established a pilot program to raise the high school dropout age from 16 to 18 in the Hickory Public Schools, the Newton-Conover City Schools, and the Rutherford County Schools.

Deletes the previous edition's study provision and instead provides the following. Requires the Division, in consultation with the Department, to study and make recommendations as specified. Requires the Division to report its findings, recommendations, and any legislative proposals to the Environmental Review Commission and the Joint Legislative Oversight Committee on Health and Human Services on or before December 1, 2016. Requires the Department, in consultation with the Department of Public Instruction, to study and make recommendations as to the appropriate timing and duration of water system flushing for schools prior to the commencement of the academic year. Requires the Department to report its findings, recommendations, and any legislative proposals to the Environmental Review Commission and the Joint Legislative Committee on Education Oversight on or before December 1, 2016.

Deletes the previous edition's appropriations provision and instead provides the following. Appropriates $2.4 million in nonrecurring funds from the General Fund to the Department of Health and Human Services to either (1) reimburse schools and child care facilities for the costs associated with testing drinking water for the presence of lead as required in Section 2 or (2) to cover the costs associated with the Department conducting sampling and analysis of drinking water on behalf of schools and child care facilities. Allows up to 5% of the total appropriation to be used by the Divisions of Public Health and Child Development and Early Education, the Department, and the Department of Public Instruction to support the administration and implementation of Section 2 and 3, and up to $250,000 of the total appropriation to be used to develop and implement the database and reporting infrastructure necessary to support the requirements of Sections 2 and 3. Requires the Department of Health and Human Services to reimburse each school and child care facility upon receipt of appropriate documentation that authenticates the payment for and completion of the required sampling and analysis for lead in drinking water. Specifies the costs incurred by schools and child care facilities for which the Department of Health and Human Services may use the remaining funds to reimburse. Provides the appropriations provisions are effective July 1, 2016.

Makes the act effective when it becomes law (previously, July 1, 2016).