Directs the State Board of Education (SBOE) to implement a three-year Dropout Recovery Pilot Program in four local school administrative units selected by SBOE, in order to reengage students and increase the graduation rate in North Carolina through an educational program that provides flexible scheduling and a learning environment with individualized and self-paced learning options. Requires the SBOE to approve a nonprofit or for-profit education partner to provide the educational services and programming under the pilot program. Makes the local school administrative unit responsible for reporting enrollment to the Department of Public Instruction, working to align graduation requirements, and issuing diplomas. Requires that a pilot program provide four specified functions. Also requires an entity to demonstrate nine enumerated criteria before the SBOE approves the entity as an education partner. Requires data and student performance results to be collected and compiled from all pilot programs, with the SBOE measuring program success. Provides a timeline for a request for proposals from applicants. Specifies that a student attending the pilot program must be enrolled as a student of the resident local school administrative unit, and included in the average daily membership of that unit. Distributes pupil funding as specified. Permits the SBOE to authorize flexible attendance requirements. Specifies that the pilot program will be operated through the SBOE, as a program of the contracting unit, or as an alternative school. Effective July 1, 2011.