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

Deletes all provisions of the 1st edition and replaces it with the following.

Amends GS 115C-218(b)(10) to require the State Board of Education (State Board) to submit all proposed rules and guidance related to charter schools to the NC Charter School Advisory Board (Advisory Board), and requires the Advisory Board to provide comments and recommendations within 45 days. Prohibits the State Board from adopting any proposed rules and other guidance related to charter schools until comments and recommendations have been received, unless the Advisory Board fails to provide written comments and recommendations within 45 days.

Amends GS 115C-218.1(b)(3) to allow a charter school board of directors to include members who are not state residents, but allows the State Board to require that a majority of the board reside in the state.

Amends GS 115C-218.1(b)(13) to increase the minimum number of students to be served by the charter school from 65 to 80.

Amends GS 115C-218.5 to require the State Board to renew the charter upon the request of the chartering entity for subsequent periods of 10 years (was, allowed renewal for subsequent periods of 10 years). Requires granting approval of a material revision of a charter application for a charter school to increase its enrollment during the charter school's second year of operation and annually thereafter by up to 20% of the school previous year's enrollment unless: (1) the charter school has been notified by the State Board in the previous year of failure to meet requirements for student performance contained in the charter or failure to meet generally accepted standards of fiscal management or (2) the charter school is not in compliance with state law, federal law, the school's own bylaws, or the provisions set forth in its charter granted by the State Board (was, increases in enrollment during the charter school's second year of operation and annually thereafter of up to 20% of the school's previous year's enrollment was not considered a material revision of a charter application).

Amends GS 115C-218.15 to require a charter school board of directors to adopt a conflict of interest and anti-nepotism policy that includes specified provisions.

Amends GS 115C-47 to add a provision concerning the adoption of anti-nepotism policies by local boards of education.

Amends GS 115C-426 to allow other funds to be used to account for reimbursements, including indirect costs, fees for actual costs, and tuition, if necessary to comply with a requirement by a donor of a gift or a grant that the local school administrative unit use a separate fund to account for those funds.

Requires the State Board, upon written recommendation made by the Advisory Board, by September 15, 2015, to amend the process and rules for replication of high‑quality charter schools established in North Carolina State Board of Education Policy TCS‑U‑016 to authorize consideration for fast track replication of a charter application from a board of directors of a North Carolina nonprofit corporation who agrees to contract with an education management organization or charter management organization currently operating a charter school or schools in the State. Requires the State Board to report to the Joint Legislative Education Oversight Committee by November 15, 2015, on the amendment to the process and rules for charter school replication.