House committee substitute to the 1st edition makes the following changes. Changes statutory references in GS 115C-218.7 (material revisions of charters) and GS 115C-218.8 (nonmaterial revisions of charters) to refer to low-performing schools under GS 115C-218.94, pertaining to identification of low-performing and continually low-performing charter schools (was, GS 115C-105.37A, a continually low performing school and reassignment of students). Deletes new GS 115C-218.87 (authorizing charter schools to establish micro school programs) and conforming changes to GS 115C-84.3 and GS 115C-218.1.

Adds new subsection (h1) to GS 115C-218.45 to authorize charter schools unable to fill current enrollment with students qualified under the laws of this State for admission to a public school to enroll out-of-state students who are domiciliaries of other states. Requires the charter school to charge those students a tuition of at least 50% of the total per pupil allocation of the local appropriation for the county where the charter school is located and the per pupil State appropriation for that school year but no more than 100% of the total of the per pupil allocation of the local appropriation for the county in which the charter school is located and the per pupil State appropriation for that school year. Caps the number of out-of-state enrollees at 10% of the number of students enrolled in the charter school. Defines foreign exchange student for purposes of the subsection. Permits charter schools to enroll no more than two foreign exchange students per high school grades nine through twelve in any given school year at the charter school. Sets forth the same tuition framework as described above. Specifies that foreign exchange students do not count toward the enrollment capacity or cap for any program, class, building, or grade levels for grades nine through 12 and are not be subject to any lottery process used by the charter school for enrollment. Specifies that new GS 115C-218.45(h1) applies beginning with the admissions process for the 2024-25 school year. 

Deletes new subsection (b1) to GS 115C-218.45 (non-discrimination provisions of charter school students) and instead enacts new GS 115C-74(68), which prohibits a local board of education from considering a student's current or prior enrollment in a charter school in any criteria used by the local board for determination of admissions or eligibility to any school or special program.

Deletes amendments to GS 115C-426(c) (uniform budget).

Amends GS 115C-407.55 (rules for high school interscholastic athletic activities) as follows. Requires all rules adopted by the State Board of Education (Board) for high school interscholastic activities by public schools to require that charter schools and nonpublic schools be classified as follows: (1) the charter or nonpublic school must determine, based on the address of the student, the school in the local school administrative unit the student would be assigned to attend by the local board of education. Requires the charter or nonpublic school to submit to the administering organization (i) the names of all schools to which the students would have been assigned and (ii) the percentage of students who would have attended each of those schools; (2) the charter or nonpublic school classification must be based on the classification of the school or schools that the largest percentage of the student body of that school would have been assigned to attend in any local school administrative unit; and (3) permits a charter or nonpublic school to apply for a hardship waiver based on the school's classification made in accordance with this subdivision. Requires the Board to adopt emergency rules to implement GS 115C-407.55 as amended by the act for the 2023-24 school year.