Amends SL 2011-259, providing that the State Board of Education (Board) will implement a Dropout Prevention and Recovery Pilot Program in New Hanover County Schools and three other local school administrative units selected by the Board. The Board will also select four charter schools approved by the Board under GS 115C-238.29D, providing that at least one will be located in Mecklenburg County, to implement the programs (previously, there was only a three-year Dropout Recovery Pilot Program in the New Hanover County Schools and three other local school administrative units). Makes conforming changes to reflect the additional characteristics.

Provides that the participating schools must be accredited by the Southern Association of Colleges and Schools. Expands minimum educational related criteria that the pilot program must provide, including, but not limited to, instructional models that are self-paced and mastery-based and individualized graduation plans to guide students to graduation with a standard high school diploma.

Deletes Section 5 of SL 2011-259, which provided for the collection and compilation of data and student performance results. Enacts a new Section 5A of SL 2011-259, which provides for the gathering of student performance data in order to be analyzed in accordance with Board policies on the accountability model provided for alternative learning programs. Provides that this data will also be used as a basis to report on the success of the pilot program to the Joint Legislative Education Oversight Committee (Committee) as well as for future funding decisions about the pilot program.

Directs the Board to provide funds available in the ADM Contingency Reserve for an additional per pupil funding allotment to local school administrative units to transfer schools in the pilot program or to participating charter schools in the program that demonstrate an average daily membership which is at least 30% higher than the average daily membership of the first month of the school year. The allotments will be made on a non-discretionary basis and will be based on the December average daily membership. If the Board does not have sufficient funds available, the Board can use funds appropriated to the State Aid for Public Schools.

Provides that the pilot program will be operated through the Board, a charter school authorized by the Board, or as a program of the contracting local school administrative unit.  Provides that SL 2011-259 will be effective July 1, 2013.

Directs the Board to report to the Committee on the implementation and success of the pilot programs on or before March 15, 2014.

Appropriates from the General Fund to the Board $1 million in recurring funds to provide additional funds for the ADM Contingency Reserve.

Act is effective when it becomes law and applies to schools selected by the Board on or after July 1, 2013.