Amends GS 115C-150.11 to change the governance and administrative structure of the Eastern NC School for the Deaf and the NC School for the Deaf (hereinafter Schools for the Deaf). Provides for general supervision of the Schools for the Deaf by the State Board of Education (State Board), which currently is the sole governing agency of the Schools. Provides for the Schools for the Deaf to be administratively housed within the Department of Public Instruction (DPI), but operate independently through a board of trustees as the governing body for each residential school established under specified state law. Requires each board of trustees to appoint a director for the school to act as secretary of the board and manage school personnel, day-to-day operations, and the school's operating budget at the direction of the board (currently the Superintendent of Public Instruction is charged with administration of the Schools for the Deaf, including appointment of staff and oversight of the school). Makes conforming changes to the current provisions of the act, limiting the provisions to the governance and administration of the Governor Morehead School for the Blind. Makes conforming changes to the section title.

Enacts GS 115C-150.11A, establishing membership for each School's board of trustees, with four members legislatively appointed and one gubernatorial appointment. Provides for ex officio, nonvoting members of each board. Provides for staggered six-year terms and provides for terms of initial members. Sets parameters for vacancies, meetings, and board procedures. 

Enacts GS 115C-150.11B, detailing the powers and duties of a board of trustees of a residential school as a body politic and corporate, among those to receive donations from any source and to acquire and dispose of real property.

Amends GS 115C-150.12 to specify that each residential school with a board of trustees established pursuant to GS 115C-150.11A is considered a local school administrative unit for purposes of federal law and the administration of state law. 

Amends GS 115C-150.13 to direct each board of trustees for the residential schools for students with hearing impairments to adopt necessary administrative rules to implement the Article's requirements, including eligibility for admission criteria that accounts for four specified factors, such as parental input and choice and recommendations of the child's Individualized Education Program (IEP). Provides that these boards of trustees are subject to rules of the State Board adopted in accordance with the Administrative Procedure Act, GS Chapter 150B. Makes conforming changes to limit the applicability of the existing provisions of the statute to administrative rules required to be adopted by the State Board for the Governor Morehead School for the Blind.

Amends GS 115C-150.14 to require a residential school for students with hearing impairments which seeks to enroll a foreign exchange student to submit a plan to the school's board of trustees prior to enrollment. 

Repeals Section 10 of SL 2013-247, which allowed DPI to reorganize, if necessary, staffing of the Governor Morehead School and the Schools for the Deaf to meet needed functions.

Amends Section 8.15 of SL 2013-360 to no longer provide for DPI to retain the proceeds generated from the rental of building space on the residential school campuses of the Schools for the Deaf to staff and operate those Schools. 

Instead, beginning with 2022-23, directs DPI to retain all proceeds generated from the rental of building space on the residential school campuses of the Schools for the Deaf and allocate all respective receipts to each board of trustees to supplement funds to staff and operate that school. Prohibits using the funds to support administrative functions of DPI. 

Permits DPI to continue its administration of the Schools for the Deaf as of June 30, 2022, until the board of trustees for each school has transitioned into the administrative role required by the act, by October 1, 2022. 

Makes the above provisions effective July 1, 2022. 

Requires legislative appointments to the Schools' boards of trustees by May 1, 2022, for members to take office effective July 1, 2022. 

Directs DPI to collaborate with the personnel from the Schools for the Deaf to develop a transition plan for the change in administration pursuant to the act to be effective July 1, 2022. Directs DPI to report to the specified NCGA committee on the transition plan by December 15, 2021.