Senate committee substitute deletes the provisions of the 3rd edition and now provides the following.

Part I.

Effective July 1, 2019, appropriates from the General Fund to the Department of Public Instruction (DPI) $16.3 million in recurring funds for each fiscal year of the 2019-21 fiscal biennium to provide legislatively mandated salary increases for principals authorized by the act. Deems departmental receipts appropriated each year up to the amounts needed to implement the salary increases.  

Part II.

Sets forth a monthly salary schedule for licensed personnel classified as teachers for the 2019-20 fiscal year, 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%), as specified.

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 2019-20 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.

Requires a highly qualified graduate employed by a local board of education to receive a monthly salary supplement at the highest qualifying level for the 2019-21 fiscal biennium. Defines highly qualified graduate to mean an individual entering the teaching profession and hired on or after July 1, 2019, who has graduated from an approved educator preparation program located in the state and meets specified GPA and assessment score criteria. Details salary supplement amounts and provides increased amounts for teachers initially employed in low-performing schools and those licensed and employed to teach in the areas of special education, science, technology, engineering, or mathematics. Limits the scope of the provisions to highly qualified graduates hired on or after July 1, 2019, and entering the teaching profession in the 2019-21 fiscal biennium. 

Sets forth the annual principal salary schedule for the 2019-20 fiscal year, with placement based on the average daily membership of the respective school and school growth scores in two of the last three school years. Sets the base salary range from $68,125 to $85,156, with increases provided for meeting or exceeding expected growth, as specified. Details parameters for determining average daily membership and growth scores. 

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

Details principal compensation for the 2019-20 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.

Amends GS 115C-105.25, concerning local board of educations' budget flexibility. Regarding transferring funds allocated for school building administration, now requires funds related to principal positions to be transferred based on the first step of the base column of the principal salary schedule (was, the first step of the Principal III Salary Schedule), and funds related to assistant principal months of employment to be transferred based on the first step of the "A" teachers' salary schedule at the salary level for assistant principals (was, the first step of the Assistant Principal Salary Schedule). 

Sets forth a principal bonus schedule for the 2019-20 fiscal year, limiting eligibility to any principal who supervised a school as principal for the majority of the previous school year if that school was in the top 50% of school growth in the state for the previous school year. Sets the bonus range from $1,000 to $15,000 based on the statewide growth percentage. Limits receipt to one bonus under the subsection, and requires the principal to receive the highest amount for which the principal qualifies. Clarifies that the bonus is in addition to any regular wage or other bonus the principal receives or is scheduled to receive. Provides that the bonus is not compensation under Article 1 of GS Chapter 135, the Teachers' and State Employees' Retirement System (TSERS). Excludes from eligibility principals no longer employed or whose last workday is prior to November 1, 2019. States legislative intent that funds provided will supplement compensation and not supplant local funds. Requires payment by November 30, 2019, to qualifying principals employed as of November 1, 2019.

Enacts GS 115C-285.1, requiring DPI to establish the Principal Recruitment Supplement Program (Program) to provide significant, time-limited salary supplements to qualifying principals who accept employment as principals of qualifying schools, subject to the availability of funds. Defines qualifying principal to mean a principal paid on the "exceeded growth column" of the principal salary schedule. Defines qualifying school to mean an eligible school selected by DPI to participate in the Program. Defines an eligible school to mean a low-performing school that received an overall school performance score that placed it in the bottom 5% of all schools in the state in the prior school year. Establishes the annual salary supplement to be $30,000, paid on a monthly basis, as long as the principal is employed as the principal of that school, up to a maximum of 36 months. Provides for limitations regarding future supplements or instances in which the principal no longer qualifies or the school is no longer eligible. Clarifies that the supplement is not compensation under TSERS. Details a timeline for the Program, including notification of eligibility, selection for participation, execution of applicable contracts, and beginning of qualifying employment. Requires all qualifying principals to begin employment at the applicable qualifying school by August 1, 2020, and annually thereafter. Requires DPI to award funds in the event an eligible employer is unable. Clarifies that the supplements are not to be used to supplant State and non-State funds already provided for principal compensation. Establishes annual reporting requirements, beginning March 15, 2021, for DPI to report to the specified NCGA committee and division on the Program, including the content specified. 

Provides that for the 2019-20 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 2019-20 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 III.

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

Part IV. 

Excludes from the legislatively mandated salary increases principals who are no longer employed or whose last work day is prior to June 30, 2019. Provides that payroll checks issued to employees after July 1, 2019, that represent payment of services provided prior to July 1, 2019, are not eligible for salary increases for principals provided in the act for the 2019-20 fiscal year. 

Provides that the act prevails in the event its provisions conflict with GS 143C-5-4 (State Budget Act). 

Repeals Sections 2.1, 2.2, 2.3, 2.6, 3.1, 4.1, 7B.5, and 7B.5A of HB 966 (Appropriations Act of 2019) if that act becomes law. 

Effective July 1, 2019.

Makes conforming changes to the act's titles.

Conference report makes the following changes to the 5th edition.

Changes the scope of the proposed changes to GS 105-130.5 (concerning corporate income tax) and GS 105-153.5 (concerning individual income tax), which provide for an income tax deduction for economic incentives received pursuant to GS 143B-437.012 (Job Maintenance and Capital Development Fund); Part 2G (Job Development Investment Grant Program); or Part 2H (One North Carolina Fund), Article 10, GS Chapter 143B. Now makes the provisions apply to amounts received by a taxpayer on or after January 1, 2019 (was, amounts received by a taxpayer pursuant to an economic incentive agreement entered into on or after January 1, 2019).

Adds the following new provisions.

Amends GS 105-164.13(61a) to exempt from sales tax self-service vehicle washes or vacuums (was, self-service car washes or vacuums) and limited-service vehicle washes.

Amends GS 105-164.3 to define gross sales, as the term is used in Article 5 concerning sales and use tax, to mean the sum total of the sales price of all sales of tangible personal property, digital property, and services (was, of all sales of items). Further amends the statute to define item to include digital property (rather than certain digital property).