Bill Summary for H 779 (2017-2018)

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Summary date: 

Apr 13 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
House Bill 779 (Public) Filed Tuesday, April 11, 2017
Intro. by Brody, Williams.

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Bill summary

Part I

Amends GS 115C-218.7(b), concerning material revisions of a charter, providing that enrollment growth of greater than 40% (was, 20%) is considered a material revision of the charter and requires approval of the State Board of Education. Makes conforming changes to subsection (b), and GS 115C-218.8. Applies to approvals for material changes on or after that date.

Part II

Amends GS 115C-218.45(f) to add students who were enrolled in another NC charter school in the preceding year to the students to which a charter school can give enrollment priority.

Part III

Amends GS 115C-218.110(b), which details information the State Board of Education is required to annually report to the Joint Legislative Education Oversight Committee. Adds to the required information the student performance data based on the Education Value-Added Assessment System (EVAAS) for charter school students disaggregated by years of student enrollment based on race, sex, grade level, ethnicity, free or reduced lunch status, and disability status in the charter school for charter schools, virtual charter schools, and dropout prevention and recovery program charter schools. Prohibits the report from including any personally identifiable student data, as defined in GS 115C-402.5. Applies to reports submitted on or after January 1, 2018.

Part IV

Amends GS 115C-218.100(b), concerning the distribution of assets upon the dissolution of a charter school, to provide that capital funds provided to a charter school by one or more counties pursuant to GS 115C-218.105(b1) and all net assets purchased or improved with the capital funds, up to the total amount of the funds provided, are deemed the property of the county or counties providing the funding, and if applicable, divided between the counties in proportion to the funds provided. Makes conforming changes. 

Amends GS 115C-218.105, State and local funds for a charter school, by adding two new subsections. New subsection (b1) permits counties to provide funds from the Public School Building Capital Fund to charter schools by direct appropriations set forth in GS 115C-546.2(d) (as amended by this act below). Limits the use of these funds to (1) the acquisition of real property for school purposes and (2) the acquisition, construction, reconstruction, enlargement, renovation, or replacement of buildings and other structures. New subsection (b2) requires that when funds are used to acquire or improve property for a charter school pursuant to subsection (b1), the amount provided by the county must be evidenced by a promissory note and secured by a deed of trust on the property acquired or improved by the funds. Provides for the county to subordinate the deed and for the county to release the deed upon satisfaction.

Amends GS 115C-546.2(d), authorizing a county to use monies in the Public School Building Capital Fund appropriated from the Education Lottery Fund to make direct appropriations to charter schools as provided in GS 115C-218.105(b1), as enacted.

Part V

Further amends GS 115C-218.105 to add a new provision to subsection (c) requiring the local school administrative unit where a student attends a charter school that is not located within a low-wealth county to transfer an amount equal to the per pupil share of any low-wealth supplemental funding provided to the local school administrative unit for the fiscal year. Adds that the per pupil share of any low-wealth supplemental funding provided to the local school administrative unit must be transferred to the charter school within 30 days of receipt of those monies by the local school administrative unit. Makes conforming changes to provide that the local school administrative unit and the charter school can use the process for mediation of differences between the State Board of Education and a charter school provided in GS 115C-218.95(d) to resolve difference on calculation and transference of the per pupil share of any low-wealth supplemental funding provided to the local school administrative unit. Makes conforming changes to GS 115C-218.105(d) to make those provisions pertaining to transfers to charter schools by local school administrative units applicable to a per pupil share of any low-wealth supplemental funding provided to the local school administrative unit, and adds the related information to that which must be reported annually to the State Board of Education, as described.

Part VI

Amends GS 115C-218(c)(3), describing the powers and duties of the Office of Charter Schools, to add the duty to assist certain charter schools seeking to participate in the NC prekindergarten program in accordance with GS 115C-218.115, as enacted by this act.

Further amends GS 115C-218.45(f) to add a student who was enrolled in a preschool program operated by the charter school in the preceding year to the students to which a charter school can give enrollment priority.

Enacts GS 115C-218.115, Operation of NC Pre-K Programs, to permit a charter school to apply to a local contracting agency to participate in the NC prekindergarten (NC  Pre-K) program as a local program site offering families a high-quality prekindergarten experience. Allows a charter school seeking to operate as an NC Pre-K program site to request administrative and technical assistance from the Office of Charter Schools with its application to the local contracting agency so long as the charter school meets the following four qualifications: (1) the charter school has operated as a charter school for at least three years; (2) the charter school is not currently identified as low-performing; (3) the charter school meets generally accepted standards of fiscal management; and (4) the charter school is substantially in compliance with State law, federal law, the charter school's own bylaws, and the provisions set forth in its charter granted by the State Board. Provides for the Office of Charter Schools' assistance in determining whether the charter school's proposed program meets building and other state standards, and the standards required to be selected as a site under the NC Pre-K program. Sets forth qualifications that must be met for a charter school otherwise meeting all of the requirements for a child care facility license to be able to use an existing or newly constructed classroom in the charter school for three- and four-year-old preschool students without further modifications. 

Part VII

Amends GS 115C-426(c), setting forth the uniform budget format, to require each source and amount of funds be identified in the annual audit required by GS 115C-447(a) not accounted for by the State Public School Fund, the local current expense fund, or the capital outlay fund. Further requires that if the source is a gift or grant restricted as to use, the restriction imposed by the donor or grantor must also be stated in the audit. Applies to audits conducted after July 1, 2017.


Adds new subdivision (49) to GS 105-275 to create a property tax exemption for personal property owned or leased by a charter school and wholly and exclusively used for educational purposes as defined in GS 105-278.4(f) regardless of the ownership of the property. Effective July 1, 2017.