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

Amends proposed GS 153A-158.1A(c)(2) to clarify that the term "school capital funds" includes all or part of funds appropriated to the school capital outlay fund as provided in GS 115-426(f)(1) and (2). Clarifies that a local board of education operates risk management programs, not the school board.

Amends GS 115C-426 to correct a cite to a statute and to provide that a county's capital outlay should not include appropriations for those purposes provided in subsections (f)(1) and (f)(2) of this section.

Amends GS 115C-431 to clarify that if a county has assumed responsibility for the ownership, acquisition, construction, and improvement of school property under GS 153A-158.1A, this section does not apply to disputes over capital outlay funds as provided in GS 115C-426(f)(1) and (f)(2).

Amends GS 115C-521 to require a local board of education to annually submit, concurrent with the submission of the school budget, the needs for school buildings necessary to provide adequate provisions for the public school term, if the county has assumed responsibility for school buildings under GS 153A-158.1A. Provides that when a county has assumed responsibility for school buildingsand there is a dispute between the local board of educationand county commissioners as to whether adequate school buildings have been provided for the publicschool term by the county, the local board of education and county commissioners may resolve the dispute using the mediation process provided in GS 115C-431(a) and (b). Conditions a county's acquisition ofrelocatable or mobile classroom units upon receipt of notice from the local board of education thatthe existing permanent school building lacks sufficient classrooms to house the school's anticipated pupil enrollment. Provides for theresolution of any dispute regarding the need for mobile units via the mediation process provided in GS 115C-431(a) and (b).

Makes technical corrections to GS 115C-534. Provides that this act applies only to the following counties: Beaufort, Dare, Davie, Guilford, Harnett, Lee, Rockingham, Rowan, and Wake. Specifies that this act does not apply to the Kannapolis City School System.