Establishes the 16 member North Carolina Educator Effectiveness, Compensation, and Career Development Task Force (Task Force), with membership appointed by the Speaker of the House of Representative and the President Pro Tempore of the Senate, as specified. Requires the Task Force to make recommendations on whether to create a statewide model of incentives to encourage the recruitment and retention of highly effective educators and to consider the transition to an alternative compensation system for educators. Specifies factors to be considered by the Task Force. Requires the Task Force to report to the 2014 Regular Session of the 2013 General Assembly by April 15, 2014, at which time the Task Force terminates.

Amends GS 115C-333 to require local school administrative units to have, to the extend practicable, at least one formal observation in schools identified as low performing, by an outside evaluator designated by the principal. Requires teachers in low performing schools who have not attained career status to be observed at least once annually by a teacher and at least three times annually by the principal or the principal's designee. Requires that at least one of the these observations be performed by the principal, and at least one by an outside evaluator designated by the principal. Applies beginning with the 2013-14 school year.

Amends GS 115C-333.1 to require teachers in schools that are not designated as low performing schools who have not attained career status to be observed at least once annually by a teacher and at least three times annually by the principal or the principal's designee. Requires that at least one of the these observations be performed by the principal, and at least one by an outside evaluator designated by the principal. Requires teachers with career status who are assigned to schools that are not designated as low-performing to be evaluated at least annually and, to the extend practicable, have at least one formal observation performed by an outside evaluator designated by the principal. Applies beginning with the 2013-14 school year.

Amends GS 115C-45(c) to give licensed employees of a local administrative unit the right to petition the local board of education to grant a hearing regarding the results of the employee's annual evaluation or implementation of a mandatory improvement plan. Applies beginning with the 2013-14 school year.

Amends GS 115C-296(b) to require that continuing licensure require at least 10 continuing education credits, including competencies related to digital learning and innovative and alternative methods of teaching. Also requires the standards for approval of institutions of teacher education to require that teacher education programs for all students include demonstrated competencies in creative teaching strategies, including digital learning and innovative and alternative methods of teaching (in addition to other already specified competencies). Provides that for teachers in their forth or fifth year of their current five year license renewal cycle, the changes apply beginning with the first year of their next five-year license renewal cycle. Applies beginning with the 2013-14 school year.

Amends GS 115C-301.1 to require teachers in kindergarten through fifth grade to receive at least three hours of duty-free instructional planning time per week, teachers in six through eight receive at least four hours per week, and teachers in grades nine through 12 receive at least five hours per week. Makes conforming changes to GS 115C-105.27(b). Applies beginning with the 2013-14 school year.

Amends GS 115C-325 to amend the determination of a teacher's career status when a teacher has been employed by a North Carolina public school system for for consecutive years. Probationary teachers given ratings of accomplished or higher or all evaluation standards for the last two of four years and a rating of highly effective by the end of the fourth year are automatically eligible for career status. Those that have not received a rating of proficient or higher on all evaluation standards for two out of the last three of the four years, and a rating of effective or higher by the end of the fourth year of evaluations do not achieve career status; provides for extending the probationary contract. Allows the State Board to adopt rules for remediation for teachers ineligible to achieve career status. If neither of the described circumstances apply, then the board must vote on whether to grant career status. Provides for the revocation of career status in specified circumstances. Makes conforming changes. Provides that a teacher obtaining career status and maintaining a rating of highly effective will not be required to serve another probationary period in any state public school system. Requires local boards of education to adopt a Reduction in Force policy for determining the positions subject to the reduction in force that includes the consideration of evaluations, effectiveness ratings, and length of tenure of licensed employees in similar positions. Provides that the board may not refuse to renew the contract of any probationary teacher or to reemploy any teacher not under contract because the teacher, in good faith, reported a violation of law or local board of education policy by a member of the local board of education or by an employee of the local board. Applies beginning with the 2013-14 school year.

Amends GS 115C-288 to require principals to use personnel and other resources to implement evidence-based practices in the classroom that are appropriate to enhance student achievement, taking specified factors into account. Requires the principal to share the practices and measures with the school improvement team. Applies beginning with the 2013-14 school year.

Amends GS 115C-333(b)(1a) to require the support provided so that an individual can resolve deficiencies identified in a mandatory improvement plan to include mentoring, coaching, or both. Applies beginning with the 2013-14 school year.

Requires the State Board of Education to develop a method of incorporating student growth, as determined by the Education Value Added Assessment System, in the calculation of the overall school performance scores and in awarding school performance grades for the annual report cards. Makes conforming changes to GS 115C-12(9)c1. Applies beginning with the 2012-13 school year.

Amends GS 115C-375.1 (to provide some medical care to students) to replace board of education with local board of education throughout the statute. Requires that the principal ensure that appropriate training is provided to all individuals participating in the medical care program. Makes other clarifying changes. Applies beginning with the 2013-14 school year.