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

Part I

Extends the effective date of new GS 115C-407.55(10) (concerning entry rules for high school interscholastic athletic activities) by one school year.

Adds the following new content.

Part II

Starting with the 2024-2025 school year, allows Dare Early College High School and Rockingham County CTE Innovation High School to operate as cooperative innovative high schools, subject to the statutory evaluation requirements governing cooperative innovative high schools. 

Part III

Amends Section 7A.4 of SL 2023-134, pertaining to supplemental funds for teach compensation, as follows. Adds new methodology to determine the supplant factor for teachers in FY 2024-205, so that it is the lesser of: (1) the total non-State funds expended for salary supplements for teachers in the 2020-2021 fiscal year divided by the total State and non-State funds expended for salaries for teachers in the 2020-2021 fiscal year or (2) the total non-State funds expended for salary supplements for teachers in the 2021-2022 fiscal year divided by the total State and non-State funds expended for salaries for teachers in the 2021-2022 fiscal year (was, determined by prong 1 set forth above). Makes conforming changes. Expands the State Board of Education’s (Board) options for nonsupplant enforcement in FY 2024-2025 so that it can either (1) continue to allocate funds to the unit if the unit can show it has remedied the deficiency in funding or (2) not allocate any funds under Section 7A.4 of SL 2023-134 to the unit if it cannot show it has remedied the funding deficiency. (Currently, Board must not allocate any funds to the unit under Section 7A.4 of SL 2023-134.)

Part IV

Allows any project by a low-capacity institution (defined as a UNC constituent institution with a full-time equivalent enrollment of less than 10,000 students in the fiscal year preceding authorization of the project) falling under GS 143C-4-3.1 (State Capital and Infrastructure Fund [Fund]) that exceeds $20 million to use up to 2% of the total project authorization to support additional project management capacity through (1) time-limited employees of the constituent institution or (2) a non-State third-party. Prevents the institution from using the flexibility to supplant funding for existing employees. Applies to contracts executed after the act becomes law.

Part V

Effective June 30, 2024, adds new Section 8.25, pertaining to carryforwards for certain projects for Fayetteville State University and North Carolina Agricultural and Technical State University in Part VIII of SL 2023-134, as amended, as follows. Specifies that the following nonrecurring funds appropriated for the 2023-2024 fiscal year do not revert at the end of the 2023-2024 fiscal year but remain available until the end of the 2024-2025 fiscal year: (1) $2.5 million appropriated to the Office of State Budget and Management to be allocated to Fayetteville State University for a risk management school; (2) $5 million appropriated to the Board of Governors of The University of North Carolina to be allocated to North Carolina Agricultural and Technical State University for programs, research faculty and staff, research expenditures, and building infrastructure.

Part VI

Effective June 30, 2024, amends GS 116-30.3 (reversions pertaining to UNC) so that funds appropriated to UNC constituent institutions under GS 105-113.128 (use of tax proceeds from sports wagering) do not revert at the of the fiscal year in which they’re appropriated but remain available until expended.

Part VII

Allows the Chair of the UNC Board of Governors or their designee to sit as an ex officio voting member on the board of Project Kitty Hawk (was, just the chair) under Section 8.24 of SL 2021-180.

Part VIII

Notwithstanding GS 116-209.62, requires for applications for the award of funds beginning in the 2024-2025 academic year only, the North Carolina Teaching Fellows Program to provide forgivable loans for completion of an educator preparation program of up to $5,000 per semester for up to six semesters to the following categories of selected students: (1) students who were enrolled in the 2023-2024 academic year in a program of study leading to licensure in elementary education or (2) students who were enrolled in the 2023-2024 academic year in an educator preparation program that becomes a selected educator preparation in the 2024-2025 academic year and who remain enrolled in that program.

Part IX

Amends GS 116-143.1 (provisions for determining resident status in State institution of higher education for tuition purposes) so that any citizen of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau who is a nonresident will be eligible to be charged the in-State tuition rate and pay the full amount of the in-State tuition rate and applicable mandatory fees. Effective July 1, 2024, and applies beginning with the 2024-2025 academic year.

Part X

Allows the State Education Assistance Authority (Authority) to allocate unused funds authorized for administering the Opportunity Scholarship Grant Fund Program under GS 115C-562.8 to the additional administrative costs of the Personal Education Student Accounts for Children with Disabilities Program (Account) under GS 115C-597. Increases the amount that the Account may retain for administrative costs to the lesser of 4% of the funds appropriated or $3 million (currently, lesser of 4% of appropriated funds or $2 million). Directs that if the actual costs of administering the Account exceeds the funds authorized, the Authority may allocate unused funds set aside for administration costs from the Opportunity Scholarship Grant Fund Reserve pursuant to G.S. 115C-562.8(c) for the additional administrative costs of the Accounts.

Makes organizational changes and conforming changes to the act’s titles.