Conference report makes the following changes to the 3rd edition. Amends the act's short and long titles.

Deletes all of the previous provisions and now provides the following.

Part I. ACP/MOU/Additional Funding for Public Schools

Establishes that the purpose of this Part is to ensure that local school administrative units located in whole or in part in the counties directly impacted by the placement of the Atlantic Coast Pipeline (ACP) within their respective jurisdictions must receive the benefit of any funds provided or gifted for the benefit of the State or the people of NC as a result of the ACP. Further establishes that compensatory mitigation payments for proposed impacts to streams, buffers, and wetlands in those areas were assessed under the 401 certification issued by the Department of Environmental Quality (DEQ) to the ACP LLC on January 26, 2018.

Describes the Mitigation Project Memorandum of Understanding by and between Governor Cooper and ACP LLC dated January 25, 2018 (MOU). States that the MOU purports to provide funding in the form of a gift, voluntary contribution, or otherwise to be used for: (1) mitigation for the unavoidable effects of the ACP on the environment and natural resources of the communities along the ACP's route, (2) support and funding for economic development in the counties that would be impacted by the ACP, and (3) extension of renewable energy projects into certain local communities which may stand to be affected by the ACP's operation. Establishes that the allocation of funds to the State and local entities, officers, or officials falls within the purview of the General Assembly. Authorizes the acceptance of these funds only if the following requirements of this Part are met. 

Authorizes a state or local entity, officer, or official acting within an official capacity to accept, direct the use of, or otherwise participate in directing the disbursement of the funds received pursuant to the MOU, or any successive contract or document evidencing an intent to agree that funds be used for the benefit of the State or the people of NC for effects of the ACP, on the condition that schools located in whole or in part in counties through which the ACP runs are the sole recipients of the funds. Directs that one-half of the funds received be allocated among the school units based on the allotted average daily membership (ADM) for the 2017-18 fiscal year as determined and certified by the State Board of Education as provided. Further directs that the remaining funds received are to be allocated among the school units based on linear ACP miles as provided.

Requires each school unit receiving funds under this Part to report to the Department of Public Instruction (DPI) on funds received within 10 days of receipt of the funds. Directs DPI to collate all reports and remit the collated information to the Joint Legislative Commission on Governmental Operations quarterly, with the first collated information to be remitted no later than September 1, 2018. Requires the school units to continue to report and DPI to continue to remit the collated information until DPI certifies that all funds governed by the MOU have been received by the school units. 

Provides statements concerning the legislative and executive powers of the State. Clarifies that nothing in this Part is to be construed, or is intended, to (1) be in conflict with the rights of any person or any mandatory provision of federal law or to infringe on the constitutional powers of the Governor to execute the laws of the State or (2) preclude or supersede any mitigation agreement entered unto under applicable State or federal law.

Provides that this Part is effective January 25, 2018.

Part II. Class Size Phase In

Amends Section 1(b) of SL 2017-9 to limit the average class size for kindergarten through third grade in a local school administrative unit to one teacher per 20 students for the 2017-18 and 2018-19 school years (currently, limited to 20 students for the 2017-18 school year with the class size requirements set forth in GS 115C-301, as amended, applicable to the 2018-19 school year). Further limits the size of an individual class in kindergarten through third grade, at the end of the second school month and for the remainder of the school year, to one teacher per 23 students (currently, limited to 23 students).

Limits the average class size for kindergarten through third grade in a local school administrative unit to one teacher per 19 students for the 2019-20 school year, and one teacher per 18 students for the 2020-21 school year. Further limits the size of an individual class in kindergarten through third grade, at the end of the second school month and for the remainder of the school year, to one teacher per 22 students for the 2019-20 school year, and one teacher per 21 students for the 2020-21 school year.

Establishes that the class size requirements set forth in GS 115C-301, as amended, apply beginning with the 2021-22 school year.

Part III. Program Enhancement Teacher Allotment

Effective July 1, 2018, amends GS 115C-301 to require funds for classroom teachers in the State Public School Fund to consist of position allotments for (1) classroom teachers for kindergarten through twelfth grade, including funds for program enhancement teachers; self-contained exceptional children teachers; math, science, and computer teachers; and matching benefits and (2) program enhancement teachers for kindergarten through fifth grade.

Effective July 1, 2021, amends GS 115C-301, requiring funds for classroom teachers in the State Public School Fund to consist of position allotments for classroom teachers for kindergarten through twelfth grade, to specifically require that funds for program enhancement teachers for sixth through twelfth grade be included.

Amends GS 115C-301(c1), which sets out class size exceptions for kindergarten through third grade, to add program enhancement classes to those excepted from the class size requirements for kindergarten through third grade. Additionally, clarifies the existing exception set out for language immersion classes, providing the exception applies to dual language immersion classes. 

Further amends GS 115C-301, adding new subsection (c2) establishing the allotment ratio for kindergarten through fifth grade for program enhancement teachers to be one teacher per 191 students. Defines program enhancement similarly to existing GS 115C-301(f)(2)a., but adds that the term may also refer to other supplemental classes as defined by the State Board of Education. Makes conforming changes. 

Makes conforming change to repeal Section 1(a)(2) of SL 1995-450, effective July 1, 2018.

Part IV. Allotment Transfer Restrictions

Effective July 1, 2018, amends GS 115C-105.25(b), as amended, to prohibit local boards of education from transferring positions out of the allocation for program enhancement teachers for kindergarten through fifth grade. Allows for local boards of education to convert positions allocated for program enhancement teachers for kindergarten through fifth grade into positions allocated for classroom teachers for kindergarten through twelfth grade. 

Effective July 1, 2021, amends GS 115C-105.25(b), as amended, to prohibit local boards of education from transferring any positions out of the allocation for classroom teachers for kindergarten through twelfth grade except as currently provided in subdivision (5a). Makes conforming changes.

Part V. Appropriations for Program Enhancement Teachers

Appropriates from the unappropriated fund balance of the General Fund to DPI for the 2018-19 fiscal year $61,359,225 in recurring funds for a position allotment for program enhancement teachers for kindergarten through fifth grade. Makes conforming changes to Sections 2.1 and 2.2(a) of SL 2017-57.

Amends GS 115C-301(c2), as enacted by this act in Part III, to provide for appropriations from the General Fund to DPI for the allotment of program enhancement teachers for kindergarten through fifth grade beginning with the 2019-20 fiscal year. Sets out the amounts to be appropriated based on the identified percentage of the total funds required to allot program enhancement teacher positions for kindergarten through fifth grade on a basis of one teacher per 191 students for each fiscal year, with the following percentage designations: 50% appropriation for 2019-20, 75% for 2020-21, and 100% for 2021-22 and each subsequent fiscal year thereafter. Directs the Director of Budget to include the appropriated amount for each fiscal year as described when developing the base budget.

Part VI. Changes to Personal Education Savings Accounts

Amends GS 115C-591 by amending the eligibility requirements for the North Carolina Personal Education Savings Accounts Program (Program), as enacted in SL 2017-57, to now require that a student residing in the state who has not yet received a high school diploma to meet the following requirements: (1) be eligible to attend a North Carolina public school under GS 115C-366; (2) not be enrolled in a postsecondary institution in a matriculated status eligible for enrollment for 12 hours of academic credit; (3) be a child with a disability, as defined; and (4) have not been placed in a nonpublic school or facility by a public agency at public expense (previous requirements were that the student residing in the state who has not yet received a high school diploma must not be enrolled in a postsecondary institution in a matriculated status eligible for enrollment for 12 hours of academic credit; that the child have a disability, as defined; and that the student meet one of seven listed criteria).

Further amends the statute to define a part-time student as a child enrolled part time in a public school and part time in a nonpublic school that exclusively provides services for children with disabilities. Amends GS 115C-592(b) to allow part-time students to be eligible for scholarships of up to $4,500 per eligible student for the fiscal year in which the application is received. Makes conforming changes.

Requires, for the 2018-19 school year only, that the State Education Assistance Authority give priority in awarding scholarships to applicants with one or more of the following: (1) autism; (2) developmental disability; (3) hearing impairment; (4) moderate or severe intellectual disability; (5) multiple, permanent orthopedic impairments; or (6) visual impairment.

Part VII. NC Pre-K Statutory Appropriation

Enacts new GS 143B-168.10B concerning NC Prekindergarten program (NC Pre-K program) funds. Includes General Assembly findings on the need to increase funds for the NC Pre-K program. Appropriates from the General Fund to the Department of Health and Human Services, Division of Child Development and Early Education, $82,001,394 for 2019-20 and $91,351,394 for 2020-21 and each subsequent fiscal year. Requires the Director of the Budget to include the appropriated amount specified in the act for each fiscal year when developing the base budget.

Part VIII. Implement the North Carolina Supreme Court’s Holding in Cooper v. Berger by Giving the Governor Increased Control Over the Bipartisan State Board of Elections and Ethics Enforcement

Includes General Assembly findings related to the Bipartisan State Board of Elections and Ethics Enforcement. States that the purposes of this legislation is to implement the decision of the North Carolina Supreme Court on January 26, 2018, in Cooper v. Berger (No. 52PA17-2) to give the Governor executive control over the Bipartisan State Board of Elections and Ethics Enforcement (State Board) and to provide for representation on the State Board by unaffiliated and third-party voters.

Amends GS 163A-2, which sets out the membership of the State Board. Increases the membership from eight to nine individuals. The additional member is required to be an individual who is not registered with either the political party with the largest number of registered affiliates in the state or of the political party with the second-largest number of registered affiliates in the state, to be appointed by the Governor from a list of two nominees selected by the other eight State Board members. Requires the Governor to make all appointments to the State Board no later than 30 days after receiving the list of nominees for each nominating entity. Requires the eight members to hold an initial appointment selection meeting within 14 days of appointment by the Governor, for the purpose of selecting two nominees who meet the qualifications for appointment. Prohibits taking any other action, other than the oath of office, during the appointment selection meeting. Makes additional clarifying, organizational, and technical changes. Allows State Board members to be removed by the Governor at the Governor’s discretion (was, members must be removed by the Governor only for misfeasance, malfeasance, or nonfeasance). Amends the procedure for filling vacancies to reflect the addition of the new type of membership. Makes additional conforming changes.

Sets out the terms of office for members appointed to the State Board in 2018 as one beginning on March 1, 2018, and expiring April 30, 2019. Requires the State Board to hold its first meeting in March 2018.

Part IX. Effective Date

Unless otherwise indicated, the act is effective when it becomes law.