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

Amends GS 115C-325regardingthe determination of a teacher's career status when a teacher has been employed by a North Carolina public school system for four consecutive years.Provides that probationary teachersrated "highly effective" by the end of the fourth year of evaluations in accordance with the State Board of Education (SBE) teacher evaluation process, achieve career status. Provides that probationary teachers rated as "in need of improvement" by the end of the fourth year of evaluations under the SBE evaluation process, does not achieve career status and is not to teach beyond the current school term.

Further amends GS 115C-325 to add definitions for the following terms: (1) teacher performance evaluation standards, (2) teacher performance ratings, and (3) teacher status. Revokes the career status of a teacher with career status who receives a status rating of "in need of improvement" for two consecutive years. Provides that if after two years, the teacher receives a rating of "highly effective" then the teacher achieves career status; however, if the teacher receives a status of "effective," the teacher is eligible for a vote of the local board of education on whether to grant the teacher career status. Provides that if at the end of two years, the teacher receives a performance status of "in need of improvement," the teacher becomes an at-will employee and does not achieve career status. Deletes changes to subsection (e)(3) regarding inadequate performance.

Provides that the board may not refuse to renew the contract of any probationary teacher or to reemploy any teacher not under contract because the teacher, in good faith, reported a violation of law or local board policy (was, a violation of law)by a member of the local board of education or by an employee of the local board. Provides that a probationary teacherhasa right to a hearing before the local board if the superintendent recommends not to give the probationary teacher career statusand the probationary teacher is (1) eligible for career status under sub-subdivision (c)(1)c or subdivision (c)(1a) or subdivision (c)(2) of GS 115C-325; however, provides an exception to the right to a hearing if the reason for the recommendation is a justifiable decrease in thenumber of positions.

AmendsGS 115C-45(c), regarding appeals to the local board and to superior court, making it effectivewhen the act becomes law and applying beginning with the 2014-15 school year.