Part I. Tuition Waiver for Children of Eligible Veteran Teachers.

Section 1.(a). Amends GS 115B-1, which provides definitions for Chapter 115. Defines new terms 12-year teacher, 16-year teacher, and 20-year teacher as a teacher with 12, 16, or 20 years of service, respectively, as a teacher in a public school unit. Defines new term eligible teacher as a teacher employed full-time as a teacher in a public school unit. Makes technical changes to the other terms in GS 115B-1 by renumbering the definitions to account for the additions.

Section 1.(b). Amends GS 115B-2(a), concerning people eligible for tuition waiver for classes at UNC constituent institutions and community colleges as defined in GS 115D-2(2), to add 20-year teacher to the list of positions that a parent, legal guardian, or legal custodian can hold to qualify their child(ren) ages 17-23 to receive the tuition waiver under GS 115B-2(a)(4).

Adds subsection (a1) to GS 115B-2, which requires UNC constituent institutions and community colleges, as defined in GS 115D-2(2), to allow any child between 17-23 years old whose parent, legal guardian, or legal custodian is either a 16-year teacher or 12-year teacher to attend classes at a reduced tuition rate, which is a rate of 75% of the tuition rate where the child is enrolled for 16-year teachers and 50% of the tuition rate where the child is enrolled for 12-year teachers.

Adds subsection (a2) to GS 115B-2, which shifts the location of the prohibitions on a child’s eligibility for the tuition waiver under this Chapter from exceeding 54 months if seeking a baccalaureate degree or the number of months required to complete an educational program the child is applying to, if not seeking a baccalaureate degree. Previously, this language was included in GS 115B-2(a)(4).

Section 1.(c). Appropriates $2,000,000 in recurring funds for 2025-26 from the General Fund to the Board of Governors of UNC to provide tuition waivers for children of eligible veteran teachers in accordance with GS Chapter 115B, as amended by this section.

Section 1.(d). Requires the UNC System Office to report to the Joint Legislative Education Oversight Committee and the Fiscal Research Division on the actual costs of the waivers for children of eligible veteran teachers adopted pursuant to subsections (a) and (b) of this section by February 15, 2026. States intent of NCGA to adjust recurring appropriations for the waivers based on the report.

Section 1.(e). Section 1 is effective when it becomes law and applies beginning with the 2025-26 academic year.

Part II. Professional Evaluation Tools

Section 2. Requires the State Board of Education (State Board) to report to the Joint Legislative Education Oversight Committee on at least three potential professional evaluation tools for teachers to provide feedback to teachers on their professional development and to provide administrators with information on teacher quality. Provides a list of four minimum criteria the tools must meet, which includes that the tools: (1) be evidence-based and replicable; (2) take into account existing measures of teacher effectiveness including those measures listed; (3) include professional feedback, including two specific types of feedback as listed; and (4) for at least two of the tools proposed, be viewable by teachers throughout the school year.

Part III. Revive and Revise Retired Teachers Program

Section 3.(a). Reenacts GS 115C-302.4 as it existed immediately prior to its expiration and now expires June 30, 2030.

Section 3.(b). Amends newly reenacted GS 115C-302.4 by changing the statute’s title to Reemploy qualifying retired teachers (was, High-need retired teachers).

Changes defined term high-need retired teacher to qualifying retired teacher and amends the definition to a teacher who is a beneficiary of the Teachers’ and State Employees’ Retirement System of North Carolina (Retirement System) who meets all of the following requirements, which includes two new requirements: (1) retired at least two months before the scheduled date of a beneficiary's reemployment (was, retired on or before February 1, 2019) after either becoming at least 65 years old with five years of creditable service, becoming at least 60 years old with 25 years of creditable service, or having 30 years of creditable service; (2) is reemployed by a local board of education to provide classroom instruction as a teacher, as defined in GS 135-1(25), employed on an annual contract to provide the instruction in any public school unit (was, exclusively at a high-need school or schools); (3) prior to retirement taught a subject area in three of the prior five school years in which a majority of the students of the teacher had EVAAS student growth index scores that met or exceeded expected growth (new requirement); and (4) has not been reemployed by any other local board of education pursuant to this section (new requirement).

Removes definitions of high-need school and STEM.

Makes conforming changes to the language in GS 115C-302.4(b) by changing all uses of high-need retired teacher to qualifying retired teacher.

Amends GS 115C-302.4(c) by making conforming changes to use qualifying retired teacher where high-need retired teacher had been used previously. Allows a qualifying retired teacher eligibility for salary supplements and state bonuses (was, not eligible), but does not allow for salary increases beyond the salary steps prescribed in subsection (b) of GS 115C-302.4.

Makes conforming changes to the language in GS 115C-302.4(d) changing all uses of high-need retired teacher to qualifying retired teacher.

Makes conforming changes to the language in GS 115C-302.4(e) changing use of high-need retired teacher to qualifying retired teacher. Limits the contract between the local board of education and a qualifying retired teacher to a term of no more than one school year and specifies that it can be renewed on an annual basis for up to five years (was, limited to the school-year length term without limit on number of renewals).

Removes GS 115C-302.4(f) pertaining to identification of STEM and Special Education Licensure Areas.

Section 3.(c). Amends GS 135-3(a)(8), concerning members whose membership in the Retirement System terminated on or after July 1, 1963, and who become entitled to benefits in accordance with the listed provisions by adding a new sub-subdivision (i) which specifies that the postretirement earnings computed under subdivision (8) will not include earnings while a beneficiary is employed as a qualifying retired teacher under GS 115C-302.4 and that the beneficiary must not be restored to service as a teacher or employee. Requires the Department of Public Instruction to certify to the Retirement System that a beneficiary is employed by a local board of education as a qualifying retired teacher. Requires a local board of education to inform the Retirement System if it will not employ any qualifying retired teachers for the school year by September 15 each year. Clarifies that the retirement allowance of a beneficiary who retired on an early or service retirement does not cease due to reemployment as a qualifying retired teacher and that a qualifying retired teacher is not entitled to any benefits otherwise provided under this Chapter as a result of this employment period.

Section 3.(d). Amends GS 135-3(a)(8)c1 to add reference to new sub-subdivision (i) and make technical changes.

Section 3.(e). Amends GS 135-3(d) to add a new provision that a beneficiary who retired on an early or service retirement allowance under GS Chapter 135 and is a qualifying retired teacher the two months immediately following their effective retirement date should have the option of the listed subdivisions applied that has the lesser financial impact on the member, as determined by the Retirement System (was, only applicable to those beneficiaries who retired on an early or service retirement allowance under Chapter 135 and is reemployed, or otherwise engaged to perform services for, an employer participating in the Retirement System on a part-time, temporary, interim, or fee-for-service basis during the six months immediately after their effective retirement date).

Section 3.(f). Amends GS 135-1(10), which provides the definition of employee, to add qualifying retired teachers under GS 115C-302.4(a) to the list of positions that the term "employee” does not include.

Section 3.(g). Amends GS 135-1(20), which provides the definition of retirement for GS Chapter 135, by adding to the included list that in order for a member’s retirement to become effective in any month, the member must perform no work for an employer, including part-time, temporary, substitute, or contractor work at any time during the six months immediately after the effective retirement date or, if a member is a qualifying retired teacher, the two months immediately after the effective date of retirement (was, only that the member must not perform work for an employer, including part-time, temporary, substitute, or contractor work at any time during the six months immediately after the effective retirement date).

Section 3.(h). Amends GS 135-48.40(b)(1a), detailing the criteria retirees must meet to be eligible for partially contributory coverage under the State Health Plan by adding a retiree that is a qualifying retired teacher to the third criteria listed. Retirees must still meet all other listed criteria in GS 135-48.40(b)(1a).

Section 3.(i). Amends GS 135-106(b), regarding long-term disability benefits, to conform with changes made to GS 135-1(20) as explained in Section 3.(g) by clarifying that a long-term disability recipient who begins to receive an unreduced service retirement allowance from the Retirement System is not subject to the applicable waiting period set forth in GS 135-1(20) (was, the six-month waiting period).

Section 3.(j). Requires the State Treasurer to seek a private letter ruling from the Internal Revenue Service (IRS) to determine if any provisions of this section jeopardize the status of the Retirement System.

Section 3.(k). Provides that if the IRS determines a provision of this section jeopardizes the Retirement System under the Internal Revenue Code, then the section is repealed on the last day of the month following the month of receipt of that determination by the State Treasurer. Details requirements for the State Treasurer if the Treasurer receives this determination from the IRS and requirements for local school administrative units once they are notified.

Section 3.(l). Permits the Retirement Systems Division of the Department of State Treasurer to increase receipts from the retirement assets of the Retirement System to pay costs associated with the administration of the provisions of this section or to pay costs of administration directly from retirement assets.

Section 3.(m). Prohibits a beneficiary employed by a local board of education as a qualifying retired teacher from eligibility to elect into a position that would lead them to be eligible to accrue any additional benefits under GS 135-3(a)(8). Provides instruction for correction and charging for costs of correction if there is any failure to comply with the foregoing by a local board of education or beneficiary.

Section 3.(n). Appropriates $100,000 for 2025-26 from the General Fund to the Department of State Treasurer to be used to obtain the private letter ruling under Section 3.(f).

Section 3.(o). Appropriates $10,000,000 in recurring funds for each year of the 2025-27 fiscal biennium from the General Fund to the Department of State Treasurer to be used to address the increased cost to the Retirement System as a result of implementing Section 3.

Section 3.(p). Section 3 is effective July 1, 2026, and expires June 30, 2030.

Part IV. Expand Teacher Licensure Reciprocity

Section 4. Amends GS 115C-270.25 concerning out-of-state license applicants by adding that the State Board can grant a Continuing Professional License (CPL) to a teacher who is either (1) licensed in another state with a substantially similar licensure requirement who has at least 3 years of teaching experience and is in good standing with the other state or (2) currently teaching in a state that has been ranked in the top 25 states for education, as evaluated by the US News and World Report, during at least 3 of the 5 preceding school years (was, only allowed to grant a CPL to a teacher that was licensed in another state with a substantially similar licensure requirement with at least 3 years of teaching experience and in good standing with the other state). Effective when it becomes law and applies to applications for CPLs on or after that date.

Part V. Strengthen Reporting Requirements for Threats and Assaults on Teachers

Section 5.(a). Amends GS 115C-388(g) by adding to the list of actions occurring on school property that a principal must report to the appropriate local law enforcement agency if they have personal knowledge or actual notice from school personnel of the act to include a threat directed at a teacher and assault and removes the previous requirement that assault have to result in serious personal injury to be reportable.

Section 5.(b). Amends GS 115C-289.1(a) requiring a supervisor of a school employee with actual notice that the employee has received a threat from a student or has been assaulted by a student in violation of GS 14-33(c)(6) to immediately report the threat or assault to the principal (was, only required to report when there was actual notice of a teacher being a victim of assault by a student in violation of GS 14-33(c)(6) resulting in physical injury, as defined in GS 14-34.7).

Section 5.(c). Amends GS 115C-150.12C(29) to require the board of trustees to adopt rules to (1) notify the parents of any students alleged to be victims of any act required to be reported to law enforcement and the superintendent under GS 115C-288(g); (2) requiring a principal, or equivalent authority, to report acts to law enforcement in accordance with GS 155C-288(g); and (3) requiring school employee supervisors to report acts to the principal, or equivalent authority, in accordance with GS 115C-289.1(a) (was, only rules adopted related to the parental notification in the foregoing list).

Section 5.(d). Adds new subsection (p) to GS 115C-218.75 mandating that a charter school require a principal, or equivalent authority, to report acts to law enforcement in accordance with GS 115C-288(g) and to require school employee supervisors to report acts to the principal, or equivalent authority, in accordance with GS 115C-289.1(a).

Section 5.(e). Adds new subdivision to GS 115C-238.66 mandating that a regional school require a principal, or equivalent authority, to report acts to law enforcement in accordance with GS 115C-288(g) and to require school employee supervisors to report acts to the principal, or equivalent authority, in accordance with GS 115C-289.1(a).

Section 5.(f) Adds new subdivision to GS 116-239.8(b) mandating that a laboratory school require a principal, or equivalent authority, to report acts to law enforcement in accordance with GS 115C-288(g) and to require school employee supervisors to report acts to the principal, or equivalent authority, in accordance with GS 115C-289.1(a).

Section 5.(g) Section 5 is effective when it becomes law and applies to incidents or reports occurring on or after that date.

Part VI. Effective Date

Section 6. Effective July 1, 2025, except as otherwise provided.