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

Deletes changes in the 1st edition to the following sections: (1) GS 115C-238.29A(b), requiring the Charter School Advisory Board to inform applicants of a denial of a charter school application in writing and to allow applicants to petition the State Board of Education (SBE) regarding a denied charter school application; (2) GS 115C-238.29B(e), requiring the SBE to assess a $1,000 fee for initial and renewal charter applications; (3) GS 115C-238.29B, requiring the SBE to adopt rules in accordance with Article 2A of GS Chapter 150B regarding charter school operations; and (4) GS 115C-238.29D(a), requiring the SBE to make final decisions on the approval or denial of charter school applications by June 15 for all applications it receives by the deadline established by the Office of Charter Schools for the receipt of applications.

Amends GS 115C-238.29B(b) to provide that a teacher may serve as a non-voting board member at a charter school where that teacher is employed by the board of directors.

Amends GS 115C-238.29D(d) to allow the SBE to renew charter schools for less than 10 years if the charter school has not provided financially sound audits for the prior three years or its student academic outcomes for the past three years have not been comparable to the academic outcomes of students in the local school administrative unit in which the charter is located.

Clarifies in GS 115C-238.29F(g)(5) that charter schools with a mission of single-gender education may limit admission on the basis of gender. However, maintains provision that discrimination against any student by a charter school based on ethnicity, national origin, gender, or disability is prohibited.

Directs the SBE to adopt a process and rules for a competitive bid process for the assumption of a charter school that shows inadequate progress. Delineates the criteria, which at minimum, the SBE must require entities interested in assuming operation of the inadequately performing charter school to meet. Directs the SBE to adopt the rules and procedures required by this section by January 15, 2015, and report to the Joint Legislative Education Oversight Committee by February 1, 2015.

Makes conforming changes to the bill title.