Contains several whereas clauses.

Amends GS 115C-105.25(b), prohibiting any funds from being transferred into or out of (currently, only into) the driver education allotment category. Adds new provision to allow funds to be transferred out of the driver education allotment category for the purpose of supporting driver education in other local school administrative units. 

Amends GS 115C-215, clarifying that the purpose of the driver education program is reducing student driver traffic accidents by making available public education to all students on driver safety and training. Adds new subsection (a1) establishing an Office of Driver Education Services (Office) within the Department of Public Instruction (DPI). Provides that the Office is to be staffed by a full-time director and other necessary personnel to assist the Office in carrying out its powers and duties. Details nine powers and duties of the Office, including leading the statewide driver education program and developing a three-year strategic plan for the program, implementing of a standard curriculum for the driver education program and the periodic update and revision of the standard curriculum, and developing a web-based system to allow local administrative units to report required data and for the Office to make data and reports available to the public. Makes conforming changes to eliminate subsection (c).

Adds new subsection (c1), directing the State Board of Education to review the strategic plan developed by the Office for the driver education program. Lists four components that must be included in the strategic plan, including the goals, strengths, and accomplishments; measurable indicators used for tracking the success of the driver education program; and action steps planned for each year of the three-year period of the plan.

Adds new subsection (c2) requiring local school administrative units to report to the Office each year on driver training offered in the unit in accordance with GS 115C-116. Details information that must be included in the report, including local assessments and evaluations used to determine quality and success of the driver education program. Adds new subsection (c3) authorizing DPI to withhold up to 5% of the state funds allocated to a local school administrative unit for driver education until the unit reports the information required by new subsection (c2).

Amends subsection (e) to require the Office to provide local boards of education with technical assistance to develop and implement a competitive selection process for contracting with other public or private entities to include requests for proposals and a model contract with necessary terms and conditions.

Amends subsection (f), authorizing the DPI to use up to 2% of the funds appropriated under the subsection each fiscal year for the direct costs of statewide program administration. 

Makes conforming changes. 

Amends GS 20-88.1 to direct the Division of Motor Vehicles (DMV) to provide the Office any data on student drivers to the extent allowable under state and federal law, as part of the evaluation requirement under GS 115C-215.

Directs the Office and the DMV, by January 15, 2018, to develop an implementation plan to provide for the transfer and collection of data on student drivers through the DMV as part of the evaluation requirements under GS 115C-215.

Directs the Office to submit a report electronically to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, and the Program Evaluation Division by October 15, 2017, describing any actions taken by the Office in response to the requirements of the act, as well as the findings included in the Program Evaluation Division's specified report to the Joint Legislative Program Evaluation Oversight Committee on March 19, 2014, and the recommendations from the National Highway Traffic Safety Administration's Technical Assessment of the Driver Education Program for the state from May 2015.

Effective July 1, 2017.