AN ACT to require charter revocation for schools that have been low‑performing for four consecutive years, to restrict charter schools from expanding if they are low‑performing, to limit charters for remote academies to three years, and to require charter schools to list the school's performance grade on enrollment applications.

Whereas, one in eight North Carolina Schools are chronically low‑performing; and

Whereas, approximately 14,400 students are stuck in chronically low‑performing charter schools; and

Whereas, low‑performing charters are a threat to the reputation of all charter schools; and

Whereas, chronically low‑performing schools trap students in an environment that has shown itself incapable of meeting their academic needs; Now, therefore,

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 115C‑218.7(b) is repealed.

SECTION 2.  G.S. 115C‑218.8(2) is repealed.

SECTION 3.  G.S. 115C‑218.45 is amended by adding a new subsection to read:

(j)       A charter school shall include on its application for enrollment the school's performance grade, as determined by the State Board of Education, for the previous five years.

SECTION 4.  G.S. 115C‑218.94 reads as rewritten:

§ 115C‑218.94.  Identification of low‑performing and continually low‑performing charter schools.

(a)        Identification of Low‑Performing Charter Schools. – The State Board of Education shall identify low‑performing charter schools on an annual basis. Low‑performing charter schools are those that earn an overall school performance grade of D or F and a school growth score of met expected growth or not met expected growth as defined by G.S. 115C‑83.15.

(a1)      Low‑Performing Enrollment. – A charter school that is identified as low‑performing is not authorized to expand enrollment, even if enrollment expansion was planned in the school's charter, until the school is no longer identified as low‑performing.

(b)        Identification of Continually Low‑Performing Charter Schools. – The State Board of Education shall identify continually low‑performing charter schools on an annual basis. A continually low‑performing charter school is a charter school that has been designated by the State Board as low‑performing for at least two of three consecutive years.

(b1)      Continually Low‑Performing Charter. – If a charter school is identified as continually low‑performing for four consecutive years, the school's charter shall be revoked. If a charter school has been identified as continually low‑performing for the three consecutive years immediately preceding the expiration of the school's charter, the Review Board may authorize the school to operate under its existing charter for one additional year. If the school is no longer low‑performing in the additional year granted under the existing charter, the Review Board may renew the school's charter.

SECTION 5.  G.S. 115C‑218.95(b1) reads as rewritten:

(b1)    If a charter school is continually low‑performing, the Review Board is authorized to terminate, not renew, or seek applicants to assume the charter through a competitive bid process established by the State Board. However, the Review Board shall not terminate or not renew the charter of a continually low‑performing charter school solely for its continually low‑performing status if the charter school has met growth in each of the immediately preceding three school years or if the charter school has implemented a strategic improvement plan approved by the Review Board and is making measurable progress toward student performance goals. The State Board shall develop rules on the assumption of a charter by a new entity that includes all aspects of the operations of the charter school, including the status of the employees. Public assets shall transfer to the new entity and shall not revert to the local school administrative unit in which the charter school is located pursuant to G.S. 115C‑218.100(b).

SECTION 6.  G.S. 115C‑218.123(b) reads as rewritten:

(b)      The Review Board shall review and approve a charter or charter modification for the creation of a remote charter academy that meets the requirements established in this Part for a term of five three years. The Review Board shall approve a minimum of two statewide remote charter academies that meet the qualifications of this Part for operation beginning with the 2026‑2027 school year and thereafter.

SECTION 7.  G.S. 115C‑218.124(c) reads as rewritten:

(c)      A nonprofit may apply for renewal of the remote charter academy for additional terms of five three years. The Review Board shall consider compliance with the requirements of this Part and success of the remote charter academy in the prior five three years in determining whether to approve a request for renewal of a remote charter academy.

SECTION 8.  This act is effective when it becomes law and applies beginning with the 2025‑2026 school year.