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

Amends the proposed definition of achievement school to mean a qualifying school selected by the State Board of Education (previously, an elementary school) under the supervision of the Achievement School District (ASD).

Amends proposed GS 115C-75.6, which establishes the ASD, to make a clarifying change to the provisions that set out the process for selecting the superintendent (previously, a superintendent) to serve as an executive officer of ASD. Amends the directive to the State Board of Education (SBE) by removing the language allowing a designee of the SBE to appoint a superintendent to serve as executive officer of the ASD, upon the recommendation of the ASD Superintendent Selection Advisory Committee.

Amends proposed GS 115C-75.7, concerning the selection of achievement schools (AS), to provide that, after selection by the SBE, the local board of education can determine to either (1) close the selected qualifying school or (2) transfer the school into the ASD (previously included an option to request adoption of the principal turnaround reform model for the school). Makes conforming changes. Authorizes the SBE to delay the transfer of a selected school to the ASD for one year only (previously, one year) upon the recommendation of the ASD Superintendent.

Amends GS 115C-75.8, concerning the selection of AS operators, to provide that the selected AS operators are encouraged to (previously, required to) hold public informational sessions and other outreach, as specified.

Adds new subsection (d) to proposed GS 115C-75.8 to set out that the contract between the SBE and AS operator must require, at a minimum, that the AS operator meet the same requirements as established for charter schools in the nine statutes specified.

Amends proposed GS 115C-75.9, concerning the management of achievement schools, to authorize the local board of education (previously, required the consent of the AS operator) to allow use of the facility by governmental, charitable, civil, or other organizations for activities within the community and retain any funds received for such use for any time the AS operator has not provided written notice to the local board of its use of the facility during that time for a purpose related to the operation of the AS (previously, did not provide for notice of use of the facility). Adds new subsection to direct the SBE to require applicants for employment with the ASD to be checked for criminal histories, and directs the SBE to provide the criminal history it receives to the ASD Superintendent and AS operator.

Adds to the clear goals the AS operator is directed to set in proposed GS 115C-75.11, concerning accountability and governance in achievement schools.

Amends proposed GS 115C-75.13, concerning innovation zones, by adding a new subsection to allow a local board of education to maintain an innovation zone created as provided in subsection (a) for up to five consecutive years. Authorizes the SBE to terminate the innovation zone, as specified, in the following ways: (1) early termination of innovation zone based on performance, (2) nonrenewal of innovation zone based on performance, (3) SBE optional extension of innovation zone for three years, (4) local board of education option to extend innovation zone for three years.

Deletes the proposed revisions to GS 115C-37B, which established the principal turnaround model for continually low-performing schools or any qualifying school that was not made into an achievement school. Makes conforming changes to the directive to the SBE to contract with an independent organization to evaluate the ASD and other innovation models, as well as appropriations for the principal turnaround reform model grants. Deletes all provisions of Sections 8, 9, and 10 of the previous edition, which directed the SBE to authorize a specific innovation zone and solicit and award pilot innovation zones. Makes conforming changes to the directive to the SBE to contract with an independent organization to evaluate the ASD and other innovation models, as well as appropriations for the principal turnaround reform model grants.