Senate committee substitute to the 1st edition makes the following changes. Deletes the provisions of the 1st edition and replaces it with the following.

Part I.

Sets forth the "A" Teacher Salary Schedule for the 2020-21 fiscal year for licensed personnel of public schools who are classified as teachers, based on years of experience, ranging from $3,500 to $5,200. Additionally sets forth salary supplements for licensed teachers who have NBPTS certification (12%), are classified as "M" teachers (10%), have licensure based on academic preparation at the six-year degree level ($126 over the supplement provided to "M" teachers), have licensure based on academic preparation at the doctoral degree level ($253 over the supplement provided to "M" teachers), and certified nurses (10%).

Requires that the first step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher, must be equivalent to the sixth step of the "A" salary schedule. Provides for a 10% salary supplement. Deems these employees eligible to receive salary supplements equivalent to those of teachers for academic preparation at the six-year degree level or the doctoral degree level.

Requires that the twenty-sixth step of the salary schedule for school psychologists, school speech pathologists licensed at the master's degree level or higher, and school audiologists licensed at the master's degree level or higher, must be 7.5% higher than the salary received by these same employees on the twenty-fifth step of the salary schedule.

Provides that in lieu of the amounts of annual longevity payments to teachers paid on the teacher salary schedule, beginning with the 2014-15 fiscal year, the amounts of those longevity payments are included in the monthly amounts under the teacher salary schedule.

Details teacher compensation for the 2020-21 school year based on either the applicable salary schedule or whether the teacher was eligible for longevity pay for the 2013-14 school year, with the compensation amount determined to be the greater amount. Provides that "teacher" includes instructional support personnel.

Part II.

Directs the Department of Public Instruction (DPI) to administer a one-time, lump sum bonus of $350 by October 31, 2020, for any teacher employed in a qualifying public school unit as of October 1, 2020. Clarifies this bonus is in addition to other wages and bonuses the teacher receives or is scheduled to receive. Deems the bonus is not compensation under the State Teachers' and Employees' Retirement System (TSERS). Defines teacher to include instructional support personnel. States the legislative intent that funds will supplement teacher compensation and not supplant local funds.

Requires for 2020-21 that funds appropriated from the General Fund to DPI for the following bonus programs be used instead for teacher bonuses: Advanced Placement/International Baccalaureate/Cambridge AICE Teacher Bonus Program, Industry Certifications and Credentials Teacher Bonus Program, Third Grade Read to Achieve Teacher Bonus Program, Fourth and Fifth Grade Reading Teacher Bonus Program, and Fourth to Eighth Grade Math Teacher Bonus Program. States the NCGA's intent for 2021-22 and subsequent fiscal years to reauthorize bonuses based on the criteria used in these programs.

Part III.

Encourages the Governor, for the 2020-21 fiscal year, to allocate funds from the Governor's Emergency Education Relief Fund to provide a one-time bonus of $600 for teachers, instructional support personnel, and noncertified personnel. Specifies that these bonuses are not compensation under TSERS.

Part IV.

Sets out the salary schedule for principals for 2020-21, beginning July 1, 2020, with rates determined based on average daily membership with increases for meeting and exceeding growth, with amounts ranging from $68,125 to $102,187. Sets out provisions for determining placement on the schedule. Sets out amounts that are to be used for determining the average daily membership between July 1, 2020, and December 31, 2020, and between January 1, 2021, and June 30, 2021. Sets out the procedure for determining the school growth score. 

Requires that beginning in 2017-18, instead of providing annual longevity payments to principals, the amounts of those payments are included in the annual amounts in the salary schedule. Details principal compensation for the 2020-21 school year based on either the applicable salary schedule or whether the principal was eligible for longevity pay for the 2016-17 fiscal year, with the compensation amount determined to be the greater amount.

Part V.

Requires DPI to administer a one-time bonus by October 31, 2020, to any qualifying principal in an amount equal to the amount received under Section 2.4 of SL 2019-247. Defines qualifying principal as one who received a bonus in 2019-20 under Section 2.4 of SL 2019-247 and is employed as a principal in a public school as of October 1, 2020. Specifies that the bonus is not compensation for purposes of TSERS. States the NCGA's intent that funds will supplement principal compensation and not supplant local funds.

Part VI.

Provides that for the 2020-21 fiscal year, assistant principals are to receive a monthly salary based on the "A" teacher salary schedule plus 19%, with placement based on total years of experience as a certified employee of the public schools. Deems an administrator with a one-year provisional assistant principal's certificate equivalent to an assistant principal. 

Requires assistant principals with certification based on academic preparation at the six-year degree level to be paid a salary supplement of $126 per month, and at the doctoral degree level to be paid a salary supplement of $253 per month.

Provides for a 10-month stipend for participants in an approved full-time master's in-school administration program. Details limitations and required certification.

Provides that in lieu of the amounts of annual longevity payments to assistant principals paid on the assistant principal salary schedule, beginning with the 2017-18 fiscal year, the amounts of those longevity payments are included in the monthly amounts provided to assistant principals pursuant to the act. 

Details assistant principal compensation for the 2020-21 school year based on either the applicable salary determined by the act or whether the principal was eligible for longevity pay for the 2016-17 fiscal year, with the compensation amount determined to be the greater amount.

Part VII.

Requires that employees of schools operated by the Department of Health and Human Services, Department of Public Safety, and the State Board of Education who are paid on the teacher salary schedule are to be paid as authorized in this act.

Part VIII.

Amends Section 3.15 of SL 2019-209 to decrease: the maximum annual employer contributions, effective July 1, 2020, by the State for each covered employee or retiree for 2020-21 to the State Health Plan: (1) from $5,165 to $5,021 for Medicare-eligible employees and retirees and (2) from $6,647 to $6,461 for non-Medicare eligible employees and retirees. Repeals this change if H1218 becomes law. If H1218 does becomes law, amends that same provision to instead reduce those amounts to $4,916 for Medicare-eligible employees and retirees and $6,326 for non-Medicare eligible employees and retirees.

Requires the Office of State Budget and Management, by August 15, 2020, to adjust the appropriations for State Health Plan contributions of all applicable agencies, departments, or institutions to reflect the changes made in the provision above. Specifies that this represents a decrease in General Fund net appropriations totaling $47,227,728 in recurring funds for 2020-21. States the NCGA's intent to restore employer contribution rates to the amounts in SL 2019-209 if the federal government provides additional relief funds or additional flexibility on existing relief funds that can be used to support the General Fund.

Requires the State Controller, by August 15, 2020, to transfer $8,942,376 in nonrecurring funds for 2020-21 from the IT Reserve Fund to the Department of Public Instruction. Also appropriates $47,227,728 in nonrecurring funds for 2020-21 from the General Fund to the Department of Public Instruction. These funds are to reflect an increase in the average salary of various public school employee positions.

Part IX.

Reenacts and incorporates by reference the State Budget Act, GS Chapter 143C.

Provides for the continued validity of 2019 legislation appropriating funds to entities covered by the act, unless expressly repealed or amended.

Appropriates departmental receipts for 2020-21 up to the amounts needed to implement the act for the 2020-21 fiscal year.

Part X.

Effective July 1, 2020.

Makes conforming changes to the act's titles.