Repeals Section 9.6 (concerning teacher contracts) and Section 9.7 (conforming changes related to teacher contracts) of SL 2013-360.

Reenacts GS 115C-325 (system of employment for public school teachers), as it existed on July 31, 2013. Amends GS 115C-325 as follows. Amends the definitions of career employee and career teacher to mean one who has acheieved (was, obtained) career status. Adds and defines the terms teacher performance evaluation standards, teacher performance ratings, and teacher status. Provides that when a teacher has been employed by a NC public school system for four consecutive years, the determination of career status is as follows: (1) if a probational teacher is evaulated using the State Board of Education (State Board) teacher evaluation process and has received a teacher status of highly effective by the end of the fourth year of evaluations, the teacher acheives career status (also provides that these teachers who also maintain a rating of highly effective in subsequent evaluation years are not required to serve another probationary period in any NC public school system); (2) if a probationary teacher is evaluated using the State Board teacher evaluation process and has received a teacher status of in need of improvement by the end of the fourth year of evaluations, the teacher does not acheive career status and must not teach beyond the school term; and (3) if neither of the above apply, or if a teacher is not evaluated using the State Board teacher evaluation process, the board must vote upon whether to grant the teacher career status. Previously, the board, near the end of the fourth year, voted on whether to grant career status in all circumstances.

Adds provisions for the revocation of career status. Provides that if, for two consecutive years, a teacher with career status who is evaluated using the State Board teacher evaluation process receives a rating of in need of improvement, the teacher loses career status and may serve as a probationary teacher beginning with the next school year. Allows a local board of education to dismiss or demote a teacher. Provides that if the teacher remains employed by the local board as a probationary teacher for two years, at the end of that time (1) the teacher acheives career status if the teacher receives a rating of highly effective, (2) the teacher is eligible for a vote on whether to grant career status if the teacher has received a rating of effective, and (3) the teacher does not acheive career status and is an at-will employee if the teacher has received a rating of in need of improvement.

Adds that the Board, upon recommendation by the superintendent, may refuse to renew the contract of a probationary teacher or reemploy a teacher not under contract for any cause, except the cause may not be because the teacher, in good faith, reported a violation of law or local board policy by the local board of education or by an employee of the board, to an appropriate authority.

Makes conforming changes.

Amends GS 115C-45 to add that a licensed employee of a local board of education has the right to petitoin the local board of education to grant a hearing regarding the results of the licensed employee's annual evaluation or implementation of a mandatory improvement plan. Changes the term "noncertified employee" to "nonlicensed employee."

Amends GS 115C-287.1 to provide that all persons employed as school administrators are employed under the statute (was, the statute applied to those employed beginning July 1, 1995). Changes the term "assistant principal's certificate" to "assistant principal's license."

Amends GS 115C-105.38A to change the term "certified staff member" to "licensed staff member."

Amends GS 115C-276 to make the language gender neutral.

Reenacts GS 115C-304 (requiring teacher tenure to be determined in accordance with GS 115C-325).

Amends GS 143B-146.7 to require the State Board (was, Secretary) to proceed under GS 115C-325(p1) for the dismissal of licensed (was, certified) instrucational personnel when the State Board identifies a school as low-performing.

Amends GS 143B-146.8 to remove the requirement that the Secretary use the State Board's performance standards and criteria in evaluating specified licensed personnel and principals unless the Secretary develops an alternative evalulation. Refers to personnel and employees as "licensed" instead of "certificated." Transfers the Secretary's duties to adopt specified rules and policies to the State Board.

Provides that individuals who have not obtained career status before the 2013-14 school year are eligible for career status according to GS 115C-325, as reenacted and amended.

Requires any local board of education that has offered a four-year contract of employment to a teacher as of the effective date of the act to provide for the performance of contract, including that the teacher will receive an annual $500 pay raise for each year of the contract, unless the teacher has not accepted the offer by June 30, 2014, or the parties agree that the contract is void. Any teacher who obtained career status as of the 2013-14 school year, regardless of whether they are employed on a four-year contract, will retain career status.

Provides that GS 115C-325, as reenacted and amended, applies to any teacher employed on a contract beginning July 1, 2014. If any provision of the statute is in conflict with the terms of a teacher's employment contract, the provisions of the individiaul's employment contract control for the term of the contract, except for renewal terms. At the end of the contract, the teacher must be employed solely in accordance with GS 115C-325. Renewal decision of teachers employed on a contract beginning July 1, 2014, are also governed by the statute.