Amends GS 115C-105.25 to provide that funds allotted by the State Board of Education for any purpose, except for funds allotted to the classroom teacher allotment category, and teacher assistant allotment category may be used to pay leases entered into under GS 115C-530 by a local board of education in a county that, at the time the lease was entered into, was in a development tier one area. Does not obligate the State or the State Board of Education to provide funds for any lease payments for leases under GS 115C-530. Provides that leases under GS 115C-530 may not be secured by the faith, credit, or taxing power of the State. Provides that the county is responsible for any lease payments for leases under GS 115C-530, if State Board of Education funds allotted to the local school administrative unit are decreased. Effective July 1, 2017.

Amends GS 115C-530 to amend the conditions that must be met before a lease of three years or longer is allowed, to require that construction, repair, or renovation of property be in compliance with GS 115C-521(c) and (c1) (currently, only (c), relating to energy guidelines). Provides that operating leases entered into by a local board of education with a private developer for a new school building must be on sites owned by either the local board of education or the county. Directs the owner to enter into a ground lease with the private developer. Requires private developer to select a general contractor according to GS 143-128(a1)(1) through GS 143-128(a1)(7). Requires the private developer to provide letters of credit or a payment bond equal to 100% of the fees for any design and contracting services. Creates procedure for local boards of education to contract with private developers for school buildings or facilities. Requires specified information from private developers seeking a contract to operate a school building or facility. Authorizes local boards of education to borrow money for a purpose allowed pursuant to 26 USC s. 54E(d)(3) with respect to the leased building or facilities. Requires the operating lease to be for a period of at least 10 years. Makes technical changes.

Amends GS 115C-426 to provide that the capital outlay fund includes appropriations for lease payments for leases described above, and that the appropriations from the fund may be paid with funds allotted by the State Board of Education for any purpose, except for funds allotted to the classroom teacher allotment category and the teacher assistant allotment category.

Amends GS 115C-489.6(a) to direct the State Board of Education, as part of the qualified zone academy bond program, to ensure that bond proceeds are allocated so as to prioritize use in counties having greater economic distress. Provides that allocation of total funds, with respect to leased facilities under GS 115C-530, be used for any purpose allowed under 26 USC s. 54E(d)(3), or with respect to any other facility, as currently specified, except that use for equipment related to rehabilitation or repair is now permitted, but not required.

Except as otherwise provided, this bill is effective when it becomes law, and applies to agreements sites leased, leases entered into, appropriations made, and bond proceeds used on or after that date.