AN ACT to appropriate funds to support elementary and secondary public education, to make various changes to the laws affecting elementary and secondary public education, and to enact provisions to transform the high school experience.

The General Assembly of North Carolina enacts:

part i. elementary and secondary public education

NORTH CAROLINA HIGH SCHOOL REDESIGN COMMISSION

SECTION 1.1.(a)  Commission Established. – There is established the North Carolina High School Redesign Commission (Commission). The Commission shall be located administratively in the Department of Public Instruction but shall exercise all of its prescribed powers independently of the Department. The purpose of the Commission is to explore and recommend changes to policies and systems governing high school and higher education that will better prepare North Carolina students for success as they transition to higher education or the workforce.

SECTION 1.1.(b)  Commission Membership. – The Commission shall consist of 15 members as follows:

(1)        Two members appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives.

(2)        Two members appointed by the General Assembly upon recommendation of the President Pro Tempore of the Senate.

(3)        One member appointed by the Governor.

(4)        The State Superintendent of Public Instruction or his or her designee.

(5)        The President of The University of North Carolina or his or her designee.

(6)        The President of North Carolina Independent Colleges and Universities or his or her designee.

(7)        The President of the North Carolina Community College System or his or her designee.

(8)        The chief executive officers of each of the following organizations, or their designees: MyFutureNC, the North Carolina Chamber of Commerce, BEST NC, and SparkNC.

(9)        One chief administrative officer or president of a community college participating in a program, project, or initiative developed pursuant to this act and one superintendent of a local school administrative unit participating in a program, project, or initiative developed pursuant to this act or their respective designees. These members shall be appointed by the chair of the Commission elected pursuant to subsection (c) of this section.

SECTION 1.1.(c)  The Commission shall elect a chair from the members appointed by the General Assembly. Each member shall have one vote for the chair, except those members to be appointed by the chair pursuant to subdivision (9) of subsection (b) of this section who shall be appointed after a chair is elected. The Commission shall meet at least four times annually. The Commission shall meet on the call of the chair or as additionally provided by the Commission. A quorum is six members of the Commission. Members may not vote by proxy.

SECTION 1.1.(d)  All members shall be appointed to terms for the entire duration of the Commission. Any vacancy in a term shall be filled by the appointing authority for the remainder of the unexpired term.

SECTION 1.1.(e)  Commission Duties. – The Commission shall examine promising practices in North Carolina and nationally to inform the Commission's recommendations. At a minimum, the Commission shall consider the following:

(1)        Flexible requirements for high school diplomas that are relevant to the knowledge, skills, and abilities students will need for success in the future workforce.

(2)        Access to apprenticeships, internships, clinical experiences, and other high‑quality, work‑based learning experiences while in high school.

(3)        Opportunities for students to earn industry recognized credentials while in high school.

(4)        Partnerships between public school units and North Carolina Community Colleges, The University of North Carolina, and North Carolina Independent Colleges and Universities for the purposes of facilitating subdivisions (1) through (3) of this subsection.

(5)        Personalized pathways for students to satisfy core graduation requirements.

(6)        Modular credit‑bearing alternatives to semester or yearlong courses.

(7)        Competency‑based alternatives to time bound courses.

(8)        Strategies for extending learning beyond school walls at scale via community connected experiences, including incorporating incentives for local businesses to partner with schools.

(9)        Uses of artificial intelligence to expand student opportunities to engage in career exploration and work‑based learning experiences.

(10)      Alternative funding models to enable the development of a statewide learning ecosystem that encourages subdivisions (1) through (9) of this subsection.

(11)      Career exploration opportunities for students in middle school and the first two years of high school that prepare students to engage successfully in a redesigned high school experience.

(12)      Evaluation of the programs, projects, and initiatives established by this act, and any other competency‑based education (CBE) programs or high school redesign efforts taking place in the State. The Commission shall partner with the Office of Learning Research at the North Carolina Collaboratory to conduct these evaluations.

SECTION 1.1.(f)  Meetings and Organization. – The chair shall designate one or more of the organizations identified in subdivision (8) of subsection (b) of this section to plan and manage Commission meetings and draft reports. Designated organizations shall provide administrative staff for meetings. Funds appropriated to the Department of Public Instruction to be used to contract with one or more organizations to plan and manage Commission meetings shall be divided equally among the organizations designated by the chair unless otherwise agreed by the chair and all designated organizations.

SECTION 1.1.(g)  Report. – The Commission shall submit a report to the Joint Legislative Education Oversight Committee by April 30, 2027, and annually thereafter. The reports shall include all recommendations approved by a majority of Commission members and a summary of any evaluations of the efficacy of any CBE programs and high school redesign efforts implemented during the current school year.

SECTION 1.1.(h)  The Commission shall terminate on June 30, 2031, or upon filing of its final annual report, whichever occurs first.

SME EDUCATION FOUNDATION PILOT PROGRAM

SECTION 1.2.  There is appropriated from the General Fund to the Department of Public Instruction the sum of three million six hundred thousand dollars ($3,600,000) in nonrecurring funds for the 2026‑2027 fiscal year to be allocated as a directed grant to the SME Education Foundation. The SME Education Foundation shall create a pilot program for the 2026‑2027 and 2027‑2028 school years for 10 high schools to receive equipment, curriculum, professional development, scholarships, and STEM‑focused extracurricular activities for students and teachers that align with the SME PRIME (Partnership Response in Manufacturing Education) Program. Funds appropriated in this section shall not revert but shall remain available until the end of the 2027‑2028 fiscal year.

PROHIBITION ON EXCESSIVE EXPENDITURES

SECTION 1.3.  Part 3 of Article 31 of Chapter 115C of the General Statutes is amended by adding a new section to read:

§ 115C‑438.1.  Prohibition on excessive expenditures by local school administrative units.

(a)        The Department of Public Instruction shall establish a procedure for reviewing monthly expenditures by local school administrative units from specific State‑funded dollar allotments beginning with October of each school year. If a local school administrative unit has expended more funds than allotted from a specific allotment, then the local school administrative unit shall remit payment of the amount overexpended to the Department consistent with rules and policies adopted by the State Board. If a local school administrative unit fails to remit payment to the Department for more than 60 days, the State Board of Education shall exercise its oversight authority pursuant to G.S. 115C‑451.

(b)        To the extent practicable, beginning with October of each school year, the Department of Public Instruction shall conduct monthly audits of local school administrative unit State‑funded position allotments to ensure compliance with the requirements of this Chapter. If the Department determines that a local school administrative unit is not compliant with the requirements of this Chapter, the Department shall take action consistent with rules or policies adopted by the State Board of Education.

RENEWAL SCHOOL SYSTEM MODIFICATIONS AND STUDY OF RENEWAL SCHOOL SYSTEM

SECTION 1.4.(a)  Section 6(p) of S.L. 2018‑32 reads as rewritten:

SECTION 6.(p)  State Board of Education Review; Termination of Plan. – The State Board shall conduct a review of the operation and student performance of the local school administrative unit operating under an approved renewal school system plan following the end of the 2022‑2023 2028‑2029 school year and, at least every three five years thereafter, to ensure that the unit is meeting the expected academic, financial, and governance strategic goals set forth in the local board of education's plan. The State Board may terminate the renewal school system plan after a review upon any of the following grounds:

(1)        Failure to meet the requirements for student performance contained in the plan.

(2)        The majority of schools in the local school administrative unit have been identified as low‑performing schools in the two school years immediately preceding the review.

If the State Board determines that the local school administrative unit operating under an approved renewal school system plan has failed to meet generally accepted standards of fiscal management or violated State or federal law, the State Board may terminate the renewal school system plan prior to the end of 2022‑2023 the 2028‑2029 school year. In addition, if the State Superintendent finds that satisfactory progress is not being made after reviewing the reports required to be submitted under subsection (q) of this section, the State Superintendent shall recommend to the State Board that the renewal school system plan be terminated immediately. The State Board shall terminate the renewal school system plan if such a recommendation is made by the State Superintendent.

Upon termination of the renewal school system plan by the State Board, the State Board shall develop a transition plan for the local board of education to revert to operating the local school administrative unit in accordance with applicable State laws and regulations for other local school administrative units.

SECTION 1.4.(b)  Section 6(q) of S.L. 2018‑32 reads as rewritten:

SECTION 6.(q)  Reporting to State Superintendent. – The local school administrative unit operating under an approved renewal school system plan shall report to the State Superintendent of Public Instruction as follows:

(1)        An annual report on the assessment instruments used pursuant to G.S. 115C‑174.11(a) and the student outcomes based on those assessments.

(2)        An annual report on the number of classroom teacher and school administrator vacancies, turnover, and use of long‑term substitutes in filling vacancies for both classroom teachers and school administrators. This report shall also provide comparisons with the statewide data on these items. In addition, the report shall also provide comparisons with the previous year's data on these items both at the local school administrative unit level and statewide.

(3)        An annual report on student absences. This data shall provide comparisons with the previous year's data on these items.

(4)        Any other reporting requirements deemed necessary by the State Superintendent of Public Instruction.

(5)        Proficiency data on each end‑of‑grade or end‑of‑course exam.

(6)        EVAAS growth data for the local school administrative unit.

(7)        The number of former students employed, enlisted in the Armed Forces of the United States, or enrolled in a postsecondary educational program.

(8)        The high school graduation rate for the local school administrative unit.

(9)        The rate of chronic absenteeism in the local school administrative unit, with chronic absenteeism being more than 10 absences within 90 instructional days.

SECTION 1.4.(c)  S.L. 2018‑32 is amended by adding a new subsection to read:

SECTION 6.(k1)  Teacher Evaluations. – Local school administrative units operating under a renewal school system plan may use an alternative evaluation model to the North Carolina Educator Evaluation System (NCEES) when evaluating teacher effectiveness.

SECTION 1.4.(d)  The North Carolina Collaboratory shall conduct a study on the following topics:

(1)        The effect of the Renewal School System on student outcomes.

(2)        An analysis of how financial and personnel flexibilities permitted under a renewal school system plan have been utilized.

SECTION 1.4.(e)  The North Carolina Collaboratory shall report on the results of the study conducted pursuant to subsection (d) of this section to the Joint Legislative Education Oversight Committee by January 15, 2028.

SECTION 1.4.(f)  This section is effective when it becomes law.

EXPAND AUTOMATIC ENROLLMENT IN ADVANCED COURSES IN K‑12 SCHOOLS TO INCLUDE ENGLISH LANGUAGE ARTS COURSES

SECTION 1.5.(a)  G.S. 115C‑81.36 reads as rewritten:

§ 115C‑81.36.  Advanced courses in mathematics.mathematics and English Language Arts.

(a)        When practicable, local boards of education shall offer advanced learning opportunities in mathematics in grades three through five, and advanced courses in mathematics in all grades six and higher. For the purposes of this section, advanced learning opportunities are those services and curricular modifications in mathematics and English Language Arts for academically or intellectually gifted students approved as part of the local plan, as required by G.S. 115C‑150.7.G.S. 115C‑150.7, and advanced courses are advanced courses in mathematics and English Language Arts.

(a1)      When advanced learning opportunities are offered in mathematics in grades three through five, any student scoring at the highest level on the corresponding end‑of‑grade test shall, for the next school year, be provided advanced learning opportunities in mathematics approved for that student's grade level. No student who qualifies under this subsection shall be removed from the advanced learning opportunity provided to the student unless a parent or guardian of the student provides written consent for the student to be excluded or removed after being adequately informed that the student's placement was determined by the student's achievement on the previous end‑of‑grade test.

(b)        When advanced courses are offered in mathematics in grades six and higher, any student scoring at the highest level on the corresponding end‑of‑grade or end‑of‑course test for the mathematics course in which the student was most recently enrolled shall be enrolled in the advanced course for the next mathematics course in which the student is enrolled. A student in seventh grade scoring at the highest level on the seventh grade mathematics end‑of‑grade test shall be enrolled in a high school level mathematics course in eighth grade. Local boards of education may provide supplemental content enrichment, which may include the administration of diagnostic assessments, to students enrolled in a high school level mathematics course. No student who qualifies under this subsection shall be removed from the advanced or high school mathematics course in which the student is enrolled unless a parent or guardian of the student provides written consent for the student to be excluded or removed from that course after being adequately informed that the student's placement was determined by the student's achievement on the previous end‑of‑grade or end‑of‑course test.

(b1)      When a high school mathematics course is offered in eighth grade, a student in seventh grade scoring at the highest level on the seventh grade mathematics end‑of‑grade test shall be enrolled in a high school level mathematics course in eighth grade.

(c)        By December 15, 2020, and annually thereafter, the The Department of Public Instruction shall submit a report annually by December 15 to the Joint Legislative Education Oversight Committee containing data collected for the current school year on the number and demographics number, demographics, and socioeconomic status of students who were eligible for advanced mathematics courses under this section, including high school level mathematics courses in eighth grade, and of those students, the number and demographics number, demographics, and socioeconomic status of those who were placed in advanced mathematics courses and were not placed in advanced mathematics courses. The report shall include information on the type and format of advanced mathematics courses provided and shall also include any feedback provided by local boards of education on the implementation of this section.

(d)       The Department of Public Instruction shall provide guidance to local boards of education on how to best develop programming and courses to ensure all impacted students receive rigorous, academically appropriate instruction in mathematics.mathematics and English Language Arts.

(e)        No student who qualifies for advanced learning opportunities or advanced courses under this section shall be removed from the advanced learning opportunity or advanced course provided to the student unless a parent or guardian of the student provides written consent for the student to be excluded or removed after being adequately informed that the student's placement was determined by the student's achievement on the previous end‑of‑grade or end‑of‑course test. Local boards of education may provide supplemental content enrichment, which may include the administration of diagnostic assessments, to students enrolled in advanced courses.

SECTION 1.5.(b)  This section is effective when it becomes law and applies beginning with the 2026‑2027 school year.

SPARKNC EXPANSION

SECTION 1.6.(a)  Article 16 of Chapter 115C of the General Statutes is amended by adding a new Part to read:

Part 12. Experiential Learning.

§ 115C‑238.90.  Learning Accelerator programs.

(a)        Purpose. – Public school units may work with eligible partners to develop nontraditional, student‑driven pathways through which students may select and complete Learning Accelerators. Learning Accelerators are modular learning experiences focused on science, technology, engineering, and mathematics (STEM), that, when aggregated, will provide competency‑based equivalency to traditional elective course credit.

(b)        Eligible Partners. – To be eligible to be a partner to assist a public school unit in developing a Learning Accelerator program, the partner must be able to provide a menu of modular learning experiences that include opportunities for work‑based learning.

(c)        Memorandum of Understanding. – Public school units shall enter into a memorandum of understanding with an eligible partner to establish certain requirements for the Learning Accelerator program. These requirements shall include the following:

(1)        The provision of a physical learning lab staffed by a learning lab facilitator, that will provide a site for collaborative learning and networking.

(2)        The qualifications and standards for learning lab facilitators. Notwithstanding G.S. 115C‑295 and any related State Board of Education rules, learning lab facilitators shall not be required to hold teacher licensure but shall meet the standards established by the memorandum of understanding. Learning lab facilitators shall be subject to the criminal history check requirements of Part 6 of Article 22 of this Chapter.

(3)        A description of the learning lab facilitator's duties, which shall include providing student advising, designing learning experiences, coordinating with industry partners, and validating student work. Learning lab facilitators shall be the teacher of record for students enrolled in a Learning Accelerator. Learning lab facilitators shall network with other learning lab facilitators to share best practices across public school units.

(4)        An operating schedule agreed upon by the public school unit and the eligible partner. For the purposes of student participation in a Learning Accelerator, the calendar requirements of Part 2 of Article 8 of this Chapter shall not apply. Students may continue to participate in a Learning Accelerator and aggregate learning experiences throughout the time the students are enrolled in the public school unit and shall not be limited to a semester or school year. Learning experiences may be provided to students in person, remotely, or through asynchronous learning experiences.

(d)       Contractors. – Additional nonlicensed personnel may be contracted with on a full‑ or part‑time basis for the purpose of providing timely, real‑world content, industry expertise, and student learning experiences as part of a Learning Accelerator program. Contract personnel shall be subject to the criminal history check requirements of Part 6 of Article 22 of this Chapter.

(e)        Course Credit. – Public school units shall award elective credit in a Learning Accelerator to any student who completes a combination of learning experiences determined by the eligible partner to provide the competency‑based equivalent of an elective credit in that course upon verification of successful completion of the learning experiences and integrity of student work products by the learning lab facilitator. Course credit shall be awarded in accordance with the following:

(1)        A student may earn up to four credits in Learning Accelerators but may not complete the same learning experience more than once for credit.

(2)        A student's participation in a Learning Accelerator but failure to earn elective credit shall not be denoted as a fail on the student's transcript.

(3)        The elective credit shall be denoted on the student's transcript as achieved competency in either a High‑Tech Learning Accelerator or a Health Science Learning Accelerator.

(4)        Successful completion of a high‑tech learning accelerator satisfies the computer science graduation requirement pursuant to G.S. 115C‑81.90.

(f)        Use of Funds. – Any State funds provided to a public school unit for the purposes of Learning Accelerator programs may only be used for salaries and benefits of learning lab facilitators or hiring contract personnel. These funds shall not be converted for any other purpose. Notwithstanding G.S. 115C‑316 or any other law or rule to the contrary, public school units are not required to pay learning lab facilitators based on the teacher salary schedule.

(g)        Funding for Local School Administrative Units. – To the extent funds are made available for the purpose, the State Board of Education shall establish a funding allotment for Learning Accelerator program learning lab facilitator positions. Funds shall be allocated to provide one learning lab facilitator position to each local school administrative unit.

(h)        Report. – No later than March 1 of each year, the Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee on the following information, disaggregated for each public school unit by grade level and school, when practicable:

(1)        Number and percentage of students with access to a Learning Accelerator program.

(2)        Student retention and persistence in Learning Accelerator programs.

(3)        Student completion of Learning Accelerator elective credits and student achievement of personalized learning goals.

(4)        Student evaluation of the Learning Accelerator programs.

(5)        Student interest in STEM following participation in a Learning Accelerator program.

(6)        Cost per student for Learning Accelerator programs.

(7)        Number and percentage of students who have participated in a Learning Accelerator program who choose to pursue a career pathway or further study in a STEM field.

(8)        Number and percentage of public school units that established a Learning Accelerator program and public school unit persistence in maintaining the program.

(9)        Recommendations for program changes, including recommended legislative changes and changes needed to ensure that federal funding for career and technical education can be used for the Learning Accelerator programs.

(10)      Recommendations on development of a competency transcript.

SECTION 1.6.(b)  There is appropriated from the General Fund to the Department of Public Instruction the sum of eight million eight hundred fifty‑five thousand dollars ($8,855,000) in recurring funds beginning in the 2026‑2027 fiscal year for the Department to administer the Learning Accelerator learning lab facilitator allotment, as established by this act.

SECTION 1.6.(c)  SparkNC, Inc., is an eligible partner for Learning Accelerator programs, as authorized by this act. There is appropriated from the General Fund to the Department of Public Instruction the sum of six million five hundred thousand dollars ($6,500,000) in recurring funds beginning in the 2026‑2027 fiscal year to be allocated as a grant to SparkNC, Inc., for administrative costs associated with being an eligible partner for Learning Accelerator programs.

SECTION 1.6.(d)  There is appropriated from the General Fund to the Department of Public Instruction the sum of five million seven hundred eighty thousand dollars ($5,780,000) in nonrecurring funds for the 2026‑2027 fiscal year to be allocated as a directed grant to SparkNC, Inc., for start‑up costs associated with expanding to provide services in additional public schools with the goal of providing services statewide. Funds appropriated pursuant to this subsection shall not revert at the end of the 2026‑2027 fiscal year but instead shall remain available until June 30, 2029.

SECTION 1.6.(e)  This section becomes effective July 1, 2026, and applies beginning with the 2026‑2027 school year.

EXTENDED LEARNING AND INTEGRATED STUDENT SUPPORTS COMPETITIVE GRANT PROGRAM

SECTION 1.7.(a)  Article 16 of Chapter 115C of the General Statutes is amended by adding a new Part to read:

Part 7A. Extended Learning and Integrated Student Supports Grant Program.

§ 115C‑238.35.  Program; purpose.

(a)        Program; Purpose. – There is established the Extended Learning and Integrated Student Supports Grant Program (Program). Nonprofit corporations and nonprofit corporations working in collaboration with local school administrative units operating relevant programs may apply for the Program. The purpose of the Program is to fund high‑quality, independently validated extended learning and integrated student support service programs for at‑risk students that raise standards for student academic outcomes by focusing on the following:

(1)        Use of an evidence‑based model with a proven track record of success.

(2)        Inclusion of rigorous, quantitative performance measures to confirm effectiveness of the program.

(3)        Deployment of multiple tiered supports in schools to address student barriers to achievement, such as strategies to improve chronic absenteeism, antisocial behaviors, academic growth, and enhancement of parent and family engagement.

(4)        Alignment with State performance measures, student academic goals, and the North Carolina Standard Course of Study.

(5)        Prioritization in programs to integrate clear academic content, in particular, science, technology, engineering, and mathematics (STEM) learning opportunities or reading development and proficiency instruction.

(6)        Minimization of student class size when providing instruction or instructional supports and interventions.

(7)        Expansion of student access to high‑quality learning activities and academic support that strengthen student engagement and leverage community‑based resources, which may include organizations that provide mentoring services and private‑sector employer involvement.

(8)        Utilization of digital content to expand learning time, when appropriate.

(b)        Program Requirements. – In each year in which sufficient funds are available, the Department of Public Instruction shall administer the Program in accordance with this Part.

(c)        Program Funding. – The Department shall use up to seven million dollars ($7,000,000) from the At‑Risk Student Services Alternative School Allotment each fiscal year to fund the Program. Of the funds allocated for the Program, the Department may use up to two hundred thousand dollars ($200,000) for each fiscal year for expenses of administering the Program.

§ 115C‑238.36.  Awards; eligible uses.

(a)        Eligible Uses. – Grants shall be used to award funds for new or existing eligible programs for at‑risk students operated by nonprofit corporations and nonprofit corporations working in collaboration with local school administrative units. Programs should focus on serving (i) at‑risk students not performing at grade level as demonstrated by statewide assessments, (ii) students at risk of dropout, and (iii) students at risk of school displacement due to suspension or expulsion as a result of antisocial behaviors. Priority consideration shall be given to applications demonstrating models that focus services and programs in schools that are identified as low‑performing pursuant to G.S. 115C‑105.37.

(b)        Awards; Required Match. – Grant participants are eligible to receive grants for up to two years in an amount of up to five hundred thousand dollars ($500,000) each year. A grant participant shall provide certification to the Department of Public Instruction that the grants received under the Program shall be matched on the basis of three dollars ($3.00) in grant funds for every one dollar ($1.00) in nongrant funds. Matching funds shall not include other State funds. The Department shall also give priority consideration to an applicant that is a nonprofit corporation working in partnership with a local school administrative unit resulting in a match utilizing federal funds under Part A of Title I of the Elementary and Secondary Education Act of 1965, as amended, or Title IV of the Higher Education Act of 1965, as amended, and other federal or local funds. Matching funds may include in‑kind contributions for up to fifty percent (50%) of the required match.

(c)        Fiscal Agent. – A nonprofit corporation may act as its own fiscal agent for the purposes of this Program.

§ 115C‑238.37.  Reporting requirements.

(a)        Recipient Reporting. – No later than July 15 of each year in which a grant recipient is participating in the Program, the recipient shall report to the Department of Public Instruction on the expenditure of grant funds and the progress of the Program, including alignment with State academic standards, data collection for reporting student progress, the source and amount of matching funds, and other measures, before receiving funding for the next fiscal year. Grant recipients shall also submit a final report on key performance data, including statewide test results, attendance rates, graduation rates, and promotion rates, and financial sustainability of the Program.

(b)        Department Reporting. – No later than September 15 of each year of the Program, the Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee on the Program, including recommendations regarding effective program models, standards, and performance measures based on student performance, leveraging of community‑based resources to expand student access to learning activities, academic and behavioral support services, and potential opportunities for the State to invest in proven models for future grant programs.

SECTION 1.7.(b)  This section becomes effective July 1, 2026, and applies beginning with the 2027‑2028 school year.

SCHOOLS IN COMMERCIAL ZONES

SECTION 1.8.(a)  Part 1 of Article 9 of Chapter 160D of the General Statutes is amended by adding a new section to read:

§ 160D‑917.  Public school sites in commercial zones.

In areas zoned for commercial use, zoning regulations shall permit, by right or by special use, the siting of a school building that is primarily used for the instruction of students and is under the control of a public school unit as defined in G.S. 115C‑5.

SECTION 1.8.(b)  This section is effective when it becomes law.

INCREASE FUNDING FOR ADVANCED TEACHING ROLES SALARY SUPPLEMENTS AND GRANTS

SECTION 1.9.(a)  There is appropriated from the General Fund to the Department of Public Instruction an additional forty‑three million three hundred thousand dollars ($43,300,000) in recurring funds beginning in the 2026‑2027 fiscal year to bring the total revised net appropriation to the Department to fifty‑four million two hundred thousand dollars ($54,200,000) in recurring funds beginning in the 2026‑2027 fiscal year for the Department to allocate to public school units participating in the Advanced Teaching Roles program to provide salary supplements under G.S. 115C‑310.13.

SECTION 1.9.(b)  There is appropriated from the General Fund to the Department of Public Instruction an additional four million dollars ($4,000,000) in recurring funds beginning in the 2026‑2027 fiscal year to bring the total revised net appropriation to the Department to nine million five hundred forty thousand dollars ($9,540,000) in recurring funds beginning in the 2026‑2027 fiscal year for the Department to expand the Advanced Teaching Roles grant program in accordance with Article 20A of Chapter 115C of the General Statutes. For the 2026‑2027 fiscal year only, the Department shall prioritize awarding Advanced Teaching Roles grants to public school units that qualified for a grant in the 2025‑2026 fiscal year but did not receive the grant due to insufficient funding.

SECTION 1.9.(c)  This section becomes effective July 1, 2026.

TEACHER EVALUATION PILOT PROGRAM

SECTION 1.10.(a)  Program Established; Purpose. – The State Board of Education shall establish the Teacher Evaluation Pilot Program (Program) for the 2026‑2027 school year through the 2029‑2030 school year. The purpose of the Program is to establish a robust set of meaningful teacher professional evaluation tools that do the following:

(1)        Support improved teacher professional development.

(2)        Provide opportunities for career advancement for teachers.

(3)        Provide additional insights for accountability for educator preparation programs.

(4)        Facilitate licensure renewal.

SECTION 1.10.(b)  Professional Evaluation Tools Selection. – No later than March 15, 2027, the State Board of Education, in consultation with the Professional Educator Preparation Standards Commission, The University of North Carolina Board of Governors, the State Board of Community Colleges, and educator preparation programs, shall select at least three professional evaluation tools for use by local school administrative units in accordance with this section. The professional evaluation tools selected by the State Board shall meet at least the following requirements:

(1)        Be evidence‑based and replicable.

(2)        Provide feedback that supports each teacher's professional development and career experience, which may include evidence of student outcomes, student surveys, or independent evaluations.

(3)        Be designed to provide all of the following:

a.         Improved professional development for all teachers.

b.         Improved licensure criteria and multiple tools for teachers to provide real, student‑focused evidence for a continuing professional license.

c.         Reduce the administrative burden on principals who are required to conduct teacher evaluations multiple times per year.

d.         Additional insights for the selection of advanced teaching roles and mentorship positions, for licensure renewal, and for other accountability metrics for educator preparation programs.

(4)        To the extent possible, at least two of the professional evaluation tools selected by the State Board shall meet the following additional requirements:

a.         Be available to all teachers in the local school administrative unit.

b.         Include student surveys and independent performance evaluations.

SECTION 1.10.(c)  Participation. – Local school administrative units may apply to the State Board of Education to participate in the Program. The State Board shall select units to participate in the Program each year, beginning in the 2027‑2028 school year and ending in the 2029‑2030 school year. At the discretion of the State Board, a local school administrative unit may participate in the Program for one or more school years over the duration of the Program.

SECTION 1.10.(d)  Licensure Renewal Flexibility. – Notwithstanding G.S. 115C‑270.30(b)(4), at the direction of the State Board, local school administrative units that are participating in the Program may use one or more of the Professional Evaluation Tools selected by the State Board pursuant to subsection (b) of this section to determine proficiency for a teacher to maintain his or her current license status under G.S. 115C‑270.30(b)(4).

SECTION 1.10.(e)  Report. – No later than March 15, 2029, the State Board of Education shall report to the Joint Legislative Education Oversight Committee with the following information:

(1)        The local school administrative units selected to participate in the Program.

(2)        The impact of the Program on teacher evaluation in the participating local school administrative units.

(3)        The professional evaluation tools selected for the Program.

(4)        The impact of the Program on teacher licensure renewal, including differences in renewal rates in local school administrative units participating in the Program and all other local school administrative units.

(5)        A plan to implement the Program on a statewide basis beginning in the 2030‑2031 school year, including any waivers of existing law that may be needed to facilitate the transition.

SECTION 1.10.(f)  Funds. – There is appropriated from the General Fund to the Department of Public Instruction for the 2026‑2027 fiscal year the sum of six million dollars ($6,000,000) in nonrecurring funds to implement the Program described in this section. These funds shall not revert at the end of the 2026‑2027 fiscal year but shall remain available until June 30, 2030.

REVISION OF HEALTHY LIVING STANDARD COURSE OF STUDY

SECTION 1.11.(a)  Notwithstanding any other provision of law to the contrary, the State Board of Education shall conduct an expedited revision of the NC Standard Course of Study for Healthful Living, Grades K‑12 standards to be adopted and implemented beginning with the 2028‑2029 school year. The revised standards shall include standards on the following:

(1)        Mental health awareness.

(2)        Common mental health conditions, such as anxiety, depression, and trauma, and their warning signs.

(3)        Help‑seeking strategies for self and peers, including school and community resources.

(4)        The neurological basis of addiction.

(5)        The risks of alcohol, nicotine and vaping, cannabis, opioids, misuse of prescription drugs, and other illicit substances.

(6)        The relationship between mental health and substance abuse.

(7)        Treatment, recovery, and prevention of mental health disorders, including reducing the stigma surrounding mental health disorders.

(8)        The effects of social media and other environmental influences on mental health and addictive behavior.

(9)        Protective factors, coping skills, and sound decision making.

SECTION 1.11.(b)  The Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee by December 15, 2028, on the following:

(1)        Adoption and implementation status of the NC Standard Course of Study for Healthful Living, Grades K‑12 standards required by subsection (a) of this section.

(2)        Early implementation feedback from local school administrative units.

(3)        Recommended technical changes to the standards.

AI ACADEMIC SUPPORT PROGRAM

SECTION 1.12.(a)  Chapter 115C of the General Statutes is amended by adding a new Article to read:

Article 42.

Academic Support Programs.

§ 115C‑650.  Establish AI Academic Support Program.

(a)        Purpose; Program. – There is established the AI Instructional Support Program (Program) to allow public school units to contract with Khan Academy, Inc., (Khan Academy) for use of the academic support service Khanmigo, in grades six through 12. Khanmigo is an application that uses artificial intelligence to support teachers with lesson plan development and to support students with lesson comprehension.

(b)        Funding. – Funds shall be allocated to each public school unit that elects to participate in the program on the basis of average daily membership (ADM) in grades six through 12 in the public school unit for the purposes set out in this section.

(c)        Funding Use. – Public school units that utilize funds pursuant to this section shall use all funds to contract with Khan Academy for use of the Khanmigo service, any associated professional development, and the rostering programs required pursuant to subsection (e) of this section.

(d)       Contract Term. – Public school units entering into contracts with Khan Academy shall contract for a term of one year. At the end of each school year, each public school unit shall evaluate the use of Khanmigo services in the public school unit prior to contracting with Khan Academy for the subsequent school year. The evaluation shall include all of the information required to be reported on by the Department of Public Instruction in subdivisions (2) through (7) of subsection (g) of this section. Public school units shall submit their evaluations to the Department of Public Instruction by July 15 of each year that funds are used pursuant to this section.

(e)        Class Rostering for Khanmigo. – All public school units that contract with Khan Academy pursuant to this section shall use a secure, cloud‑based, single sign‑on and class rostering platform to manage access to digital instructional resources and student information systems and to facilitate automated data integration between educational applications and school district systems. Class rostering products used pursuant to this section must be approved by the Department of Public Instruction.

(f)        Juvenile Justice. – The Department of Public Instruction shall contract with Khan for 500 Khanmigo licenses for use in schools operated by the Division of Juvenile Justice of the Department of Public Safety. The Department of Public Instruction shall provide technical support to the Division of Juvenile Justice for the use of Khanmigo. The Division of Juvenile Justice shall comply with evaluation requirements pursuant to subsection (d) of this section.

(g)        Study. – The Office of Learning Research at the North Carolina Collaboratory (OLR) shall design and conduct a study to measure the effectiveness of using Khanmigo, including any impact on student performance and growth. As part of the study, the Department of Public Instruction shall aggregate and report to OLR on the evaluations submitted by public school units pursuant to subsection (d) of this section. OLR shall collaborate with Khan Academy to aggregate data on student performance by teacher and by subgroup, to the extent allowed by law. OLR shall provide the results of this study to the Joint Legislative Education Oversight Committee no later than April 1, 2028.

(h)        Report. – No later than February 15 of each year in which funds are made available for the Program, the Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee at least the following information:

(1)        The number of public school units that contracted with Khan Academy pursuant to this Article.

(2)        The number of students using the Khanmigo application.

(3)        The average number of minutes and interactions students had with the Khanmigo application weekly.

(4)        The number of teachers using the application.

(5)        The average number of minutes and interactions teachers had with the Khanmigo application weekly.

(6)        Any identified impact on student outcomes.

(7)        Any identified impact on teacher performance.

(8)        The number of moderation flags generated by the application.

SECTION 1.12.(b)  There is appropriated from the General Fund to the Department of Public Instruction the sum of ten million sixty thousand five hundred sixty dollars ($10,060,560) in recurring funds beginning with the 2026‑2027 fiscal year to allocate funds pursuant to G.S. 115C‑650, as enacted by this act.

TEACHREADYNC PROGRAM

SECTION 1.13.(a)  The title of Article 17D reads as rewritten:

Educator Preparation Programs.Preparation.

SECTION 1.13.(b)  Article 17D of Chapter 115C of the General Statutes is amended to add the following new Parts:

(1)        Part 1, to be entitled Educator Preparation Programs and consisting of G.S. 115C‑269.1 through G.S. 115C‑269.30 and G.S. 115C‑269.35 through G.S. 115C‑269.55.

(2)        Part 2, to be entitled Teacher Pipeline Support Programs and consisting of the below provisions to be recodified as follows:

Former Citation                                  Recodified Citation

115C‑269.31                                       115C‑269.75

115C‑269.32                                       115C‑269.77

SECTION 1.13.(c)  G.S. 115C‑269.5 reads as rewritten:

§ 115C‑269.5.  Educator preparation programs.

(a)        Role of EPPs. – An EPP shall prepare students for educator licensure and meet the standards and requirements set forth in this Article. Part. To recommend students for licensure, an EPP shall be recognized by the State Board.

(b)        State Board Authority. – The State Board shall initially authorize and recognize an EPP as required by this Article. Part. The State Board shall have authority to regulate EPPs in accordance with this Article.Part.

….

SECTION 1.13.(d)  G.S. 115C‑269.10(b) reads as rewritten:

(b)      Rules for Granting State Approval. – The State Board shall adopt rules for granting approval to EPPs in accordance with this Article. Part. The rules shall ensure the following:

(1)        A rigorous approval process that requires that the criteria in this Article Part are met.

(2)        An application process, peer review, and technical assistance provided by the State Board.

(3)        An approval period of five years and process for renewal of approval.

SECTION 1.13.(e)  G.S. 115C‑269.45(a)(3) reads as rewritten:

(3)      Revoked. – An EPP shall be assigned revoked status and its approval to recommend students for educator licensure revoked if it meets any of the following criteria:

a.         Is assigned probation status for three consecutively measured years.

b.         Has been on probation status for one year and the State Board determines that revoking the program's approval is reasonably necessary to achieve the purposes of this Article.Part.

SECTION 1.13.(f)  G.S. 115C‑269.55(a) reads as rewritten:

(a)      Authority. – The State Board shall adopt rules necessary to establish a process for a student to report a violation of this Article Part to the State Board.

SECTION 1.13.(g)  Part 2 of Article 17D of Chapter 115C of the General Statutes, as enacted by subsection (b) of Section 1 of this act, reads as rewritten:

Part 2. Teacher Pipeline Support Programs.

§ 115C‑269.65.  Definitions.

Definitions. – Except as otherwise provided, the following definitions apply in this Part:

(1)        Apprentice. – An individual employed as an apprentice teacher by a participating unit.

(2)        Apprentice supervisor. – An experienced teacher employed by a participating unit who mentors an apprentice and is a member of a team of teachers that is led by a teacher with an advanced teaching role, as defined in G.S. 115C‑310.3.

(3)        Department. – The Department of Public Instruction.

(4)        Eligible unit. – A local school administrative unit that is an Advanced Teaching Roles unit, as defined in G.S. 115C‑310.3(6).

(5)        Eligible educator preparation program. – A recognized educator preparation program that meets all of the following criteria:

a.         Is either an institution of higher education or a public school unit.

b.         Is selected by a participating unit to enroll apprentices employed by that unit.

(6)        Participating unit. – An eligible unit selected by the Department to participate in TeachReadyNC.

(7)        TeachReadyNC. – The TeachReadyNC Program established pursuant to G.S. 115C‑269.67.

§ 115C‑269.67.  TeachReadyNC Program.

(a)        Program Established; Purpose. – There is established the TeachReadyNC Program to increase the number of professionally licensed teachers in the State and improve teacher competency, student outcomes, and teacher retention in the State. The Department shall administer TeachReadyNC, in collaboration with ApprenticeshipNC, as set forth in this Part.

(b)        Applications. – No later than November 1 of each year, the Department shall issue a request for applications from eligible units to participate in TeachReadyNC, beginning in the subsequent school year. Applications shall include at least the following information:

(1)        A plan to obtain recognition by the United States Department of Labor as a registered teacher apprenticeship program in collaboration with ApprenticeshipNC, including at least the following information:

a.         The number of apprentices the unit intends to employ.

b.         The total grant funds the unit requests for each apprentice position in accordance with the requirements of G.S. 115C‑269.69.

c.         Specific subject areas and grade levels in the local school administrative unit with teacher shortages.

(2)        A system of supports that would be provided for apprentices, including (i) apprentice supervisors and their qualifications and (ii) a schedule of supervision.

(3)        Alternative sources of funding, including federal workforce development funds, to support apprenticeships that could be paired with any State funds that could be used for TeachReadyNC pursuant to subsection (f) of this section or G.S. 115C‑269.69.

(4)        An explanation of how the unit would incorporate its teacher apprenticeship program with its advanced teaching roles program to enhance the learning environment for apprentices.

(5)        Strategies to encourage candidates to accept an apprenticeship before directly entering the teaching profession.

(6)        A list of eligible educator preparation programs.

(c)        Selection of Participants; Initial Term. – The Department shall review applications for participation in TeachReadyNC every three months of each school year following the issuance of the request for applications. The Department shall approve applications on a rolling basis and shall approve every application from an eligible unit for a term of three years as long as the application includes a clear strategy to support apprenticeships that complies with the requirements of subsection (b) of this section.

(d)       Program Requirements. – All participating units shall meet the following requirements:

(1)        Obtain recognition as a registered teacher apprenticeship program under requirements established by the United States Department of Labor.

(2)        Require each apprentice to work full‑time in a classroom with an apprentice supervisor.

(3)        Ensure that each apprentice meets all of the following requirements:

a.         Holds a bachelor's degree.

b.         Is not eligible to hold an initial professional license or continuing professional license.

c.         Does not serve as a teacher of record for any students.

d.         Is enrolled in an eligible educator preparation program.

e.         Submits a Free Application for Federal Student Aid (FAFSA) for each year in which the individual is employed as an apprentice.

f.          Does not engage in substitute teaching for more than eight hours per week.

g.         Does not work as an apprentice for more than three years.

(4)        Provide each apprentice with the following:

a.         Annual compensation that is greater than the average salary provided to a teacher assistant employed in the participating unit.

b.         Financial support for the cost of attendance at an eligible educator preparation program, including subject‑specific content courses required for licensure at the associated institution of higher education.

(5)        Provide salary supplements for the following persons:

a.         Each apprentice supervisor.

b.         Each teacher who agrees to become a teacher of record for additional students as a result of the emergency position conversion permitted under subsection (f) of this section.

(e)        Term Renewal. – Prior to the conclusion of a three‑year term in TeachReadyNC, a participating unit may apply to the Department to renew its term. The Department shall evaluate the success of TeachReadyNC at the participating unit and the compliance of the participating unit with the requirements of this Part. At the conclusion of the evaluation, the Department may, in its discretion, renew the participating unit for an additional term. Participating units shall provide any information or access requested by the Department for the evaluation required by this section or G.S. 115C‑269.35.

(f)        Emergency Position Conversion. – Notwithstanding G.S. 115C‑105.25(b), a participating unit may convert one position allocated to the participating unit for classroom teachers to its dollar equivalent at the salary on the first step of the A Teachers Salary Schedule, including benefits, for each apprentice employed by the unit. Funds made available pursuant to this subsection may only be used for the following purposes:

(1)        Salaries for apprentices.

(2)        Annual salary supplements of up to five thousand dollars ($5,000) for each teacher accepting additional students as a result of an emergency position conversion occurring pursuant to this subsection.

(3)        The permitted purposes and maximum amounts identified in G.S. 115C‑269.69(b).

(g)        Administration. – To the extent funds are appropriated for TeachReadyNC, including TeachReadyNC grants under G.S. 115C‑269.69, the Department may retain the greater of fifteen percent (15%) or three hundred thousand dollars ($300,000) each year for administration of TeachReadyNC. As part of the administration of TeachReadyNC, the Department may establish one or more new full‑time employment positions to support the Program and shall do at least all of the following:

(1)        Collaborate with ApprenticeshipNC to do all of the following:

a.         Outline the duties and responsibilities of apprentices, including on‑the‑job training requirements.

b.         Create minimum competencies for apprentices that reflect the progressive acquisition of ability.

c.         Develop a process to monitor apprentices in their first years of teaching after successful completion of TeachReadyNC to evaluate the qualities of teacher candidates that correlate to successful outcomes and lower teacher turnover rates.

d.         Create resources that can be used by participating units to select and train apprentice supervisors, including the responsibilities of an apprentice supervisor and background information on teacher apprenticeship programs.

e.         Develop a training module for apprentice supervisors that establishes standards for apprentice supervisors under TeachReadyNC and incorporates, where applicable, any preexisting standards for apprentice supervisors.

(2)        Collaborate with eligible educator preparation programs and ApprenticeshipNC to establish education requirements for apprentices and revise curriculum requirements for clinical internships to include apprenticeships under TeachReadyNC.

(3)        Assist participating units with the following:

a.         Combining State, federal, and other funds to maximize the number of apprentices.

b.         Complying with applicable State and federal law.

(4)        Allocate any grant funds pursuant to G.S. 115C‑269.69.

(h)        Report. – No later than March 15 of each year, the Department, in consultation with ApprenticeshipNC, shall report to the Joint Legislative Education Oversight Committee on the current state of TeachReadyNC, including at least all of the following information:

(1)        The impact of TeachReadyNC in each participating unit on the following:

a.         The number of teachers, disaggregated by licensure type.

b.         Student outcomes.

c.         Teacher retention.

(2)        Any non‑State funds used to support TeachReadyNC, including the sources and amounts of those funds.

(3)        The number of participating units that converted a teaching position in order to support the Program and the use or uses of those funds.

(4)        Successful strategies and best practices used by participating units.

(5)        Any barriers to expanding TeachReadyNC.

§ 115C‑269.69.  TeachReadyNC Grants.

(a)        Grant Allocation. – To the extent funds are appropriated by the General Assembly for TeachReadyNC, the Department shall allocate grant funds to participating units each fiscal year for each apprentice position. For purposes of this section, the cost of an apprentice position is the amount identified by a participating unit in its TeachReadyNC application under G.S. 115C‑269.67(b) and constitutes the salary supplement for an apprentice, the cost of attendance payment for an apprentice, and the salary supplement for the apprentice supervisor of an apprentice, up to the maximum amounts provided in subsection (b) of this section. In addition, the Department shall comply with the following requirements when allocating funds pursuant to this section:

(1)        If the TeachReadyNC funds are insufficient to fund all apprentice positions identified in the applications of the participating units at the amounts provided in those applications, the Department shall reduce the number of apprentice positions provided to the participating units but shall not reduce the funding amounts provided for each position below the amounts identified in the applications.

(2)        If there are TeachReadyNC funds remaining after funds have been allocated pursuant to the requirements of this section, the Department may allocate the remaining funds to participating units according to a process developed by the Department to optimize the success of TeachReadyNC in those units.

(b)        Use of Funds; Maximum Amounts. – Grant funds received by a participating unit pursuant to this section may only be used for the following:

(1)        Annual salary supplements of up to seven thousand five hundred dollars ($7,500) for each apprentice.

(2)        Annual payments of up to five thousand dollars ($5,000) for each apprentice for the cost of attendance at an eligible educator preparation program, including subject‑specific content courses required for licensure at the associated institution of higher education. Grant funds may only be used for this purpose after the apprentice has exhausted all other scholarships or grants available for these purposes, including federal Pell grants.

(3)        Annual salary supplements of up to five thousand dollars ($5,000) for each apprentice supervisor.

(c)        Carryforward. – Funds awarded to a participating unit under this section shall not revert at the end of each fiscal year but shall remain available until October 1 of the subsequent fiscal year.

….

SECTION 1.13.(h)  G.S. 115C‑269.35(b) reads as rewritten:

(b)      Annual Performance Reports. – The State Board shall require all recognized EPPs to submit annual performance reports. The performance reports shall provide the State Board with a focused review of the EPPs and the current authorization process in order to ensure that the programs produce graduates that are well prepared to teach. At a minimum, the annual report shall contain the following indicators:

(1)        Performance data from subsection (a) of this section.

(2)        Data related to the EPP's compliance with requirements for field supervision of students during their internship and internship, apprenticeship, and residency experiences.

(3)        The following information, disaggregated by race, sex, and ethnicity:

a.         The number of students who apply to candidacy of the EPP.

b.         The number of students admitted as candidates of the EPP.

b1.       The number of students working as apprentices pursuant to G.S. 115C‑269.67.

c.         The number of students completing the program.

d.         The number of graduates of the EPP licensed in North Carolina.

e.         The number of graduates of the EPP employed in North Carolina.

f.          The number and percentage of students who convert from a residency license to either an initial professional license or a continuing professional license.

g.         Any other information required by federal law.

…

(8)        Percentage of graduates receiving initial professional licenses.

(8a)      Percentage of graduates who worked as apprentices pursuant to G.S. 115C‑269.67 and received an initial professional license.

…

(11)      The retention of beginning educators in the profession for at least two years after licensure in North Carolina.

(11a)    The retention of beginning educators who also served as apprentices pursuant to G.S. 115C‑269.67 in the profession for at least two years after licensure in North Carolina.

(12)      The results of surveys given to school principals that involve evaluation of the program's effectiveness in preparing participants to succeed in the classroom, based on experience with employed program participants.

(13)      Any other information necessary to enable the State Board to assess the effectiveness of the program on the basis of educator retention and success criteria adopted by the State Board.

SECTION 1.13.(i)  There is appropriated from the General Fund to the Department of Public Instruction beginning in the 2026‑2027 fiscal year the sum of one million dollars ($1,000,000) in recurring funds to be awarded as grants under the TeachReadyNC program pursuant to G.S. 115C‑269.69, as enacted by subsection (g) of this section.

SECTION 1.13.(j)  This section becomes effective July 1, 2026. The Department of Public Instruction shall issue the initial request for applications for the TeachReadyNC Program pursuant to G.S. 115C‑269.67, as enacted by subsection (g) of this section, by November 1, 2026, for applications to establish registered teacher apprenticeship programs beginning in the 2027‑2028 school year. Notwithstanding G.S. 115C‑269.67(h), as enacted by subsection (g) of this section, the Department shall provide its initial report on the impact of the TeachReadyNC Program by March 15, 2028.

PART II. TRANSFORMING THE HIGH SCHOOL EXPERIENCE

COMMUNITY COLLEGE SEAMLESS SKILLS INITIATIVE

SECTION 2.1.(a)  Initiative Established; Purpose. – There is established the Community College Seamless Skills Initiative (Initiative). The purpose of the Initiative is to create a competency‑based education (CBE) model that seamlessly connects high school and community college. By aligning learning experiences from high school with college‑level competencies, the Initiative shall enable students to explore career pathways, earn dual credit, and fulfill computer science requirements while gaining credentials of value in high‑demand technology employment sectors through college credit.

SECTION 2.1.(b)  Initiative Participants. – Fayetteville Technical Community College (FTCC) and Wilkes Community College (WCC) shall partner to fulfill the commitments of the Initiative.

SECTION 2.1.(c)  Initiative Commitments. – The Initiative shall commit to accomplishing each of the following:

(1)        Establish high‑tech pathways that will integrate high school and community college curricula for hands‑on, project‑based learning.

(2)        Develop competency‑based pathways that will create cross‑curricular maps for dual credit, fostering seamless transitions between secondary and postsecondary education.

(3)        Scale and replicate to be able to build a scalable framework for rapid implementation across North Carolina.

(4)        Empower student ownership by enabling students to set long‑term learning goals and to manage and own their credentials with a digital wallet.

(5)        Facilitate student work experiences to accelerate learning and transition students into work through learn & earn work‑based learning in partnership with public agencies and private employers.

(6)        Address workforce needs by developing and sustaining a comprehensive talent pipeline of skilled workers for high‑demand technology fields in occupations that depend upon informational technology and operational technology for operational success.

(7)        Develop statewide resources, including a guidebook to facilitate model replication and a new talent development model to accelerate learning using CBE.

SECTION 2.1.(d)  Digital Wallet. – The participants in the Initiative shall contract with a vendor to provide a Credential Management System (CrMS) that meets the following criteria:

(1)        Provides the capability to issue, manage, and verify digital credentials across multiple widely adopted open standards, including World Wide Web Consortium (W3C) Verifiable Credentials, OpenBadges, and AnonCreds, within a single platform.

(2)        Supports secure, persistent communication channels that enable authenticated, peer‑to‑peer interactions between parties.

(3)        Meets or exceeds National Institute of Standards and Technology (NIST) Identity Assurance Level (IAL) 3 standards for identity proofing to ensure high‑confidence identity verification.

(4)        Is designed as a decentralized deployment operating as a network appliance within the State's controlled cloud environment rather than as a multi‑tenant Software as a Service (SaaS) offering in order to ensure data sovereignty, reduce long‑term operational costs, and eliminate dependency on third‑party hosted infrastructure.

(5)        Includes a non‑custodial mobile digital wallet that enables individuals to maintain sole control of their credentials.

(6)        Includes configurable, standards‑based workflows that extend agency processes directly to credential holders.

(7)        Incorporates advanced capabilities for workforce matching, including artificial intelligence driven analysis that aligns verified credentials with employment opportunities.

(8)        Includes trust and verification systems anchored using blockchain‑based mechanisms solely for publishing tamper‑resistant public keys and service endpoints, without storing any personally identifiable information or credential data on‑chain.

SECTION 2.1.(e)  Support. – The North Carolina Community Colleges System Office shall provide ongoing technical support to community colleges participating in the Initiative. FTCC shall enter into a memorandum of understanding with WCC to jointly co‑design the Initiative. As part of this effort, the colleges shall engage an organization with demonstrated expertise in designing and implementing learner‑centered, modular, and competency‑based high school programs aligned with emerging and high‑tech career pathways. The selected organization shall have a history of co‑designing stackable credentials with public school units and postsecondary institutions and a proven track record of building digital infrastructure that supports student‑paced progression, interdisciplinary instruction, and authentic skill development. The organization shall assist in the development of a comprehensive framework for the Initiative, including course design, sequencing, credentialing structure, and related elements necessary to support personalized student progression during the 2026‑2027 school year.

SECTION 2.1.(f)  Funding. – There is appropriated from the General Fund to the North Carolina Community Colleges System Office the sum of three million seven hundred fifty thousand dollars ($3,750,000) in nonrecurring funds for the 2026‑2027 fiscal year to be allocated to FTCC and WCC for the purposes outlined in this section. Of the funds appropriated in this section, the sum of up to two million seven hundred fifty thousand dollars ($2,750,000) shall be allocated to FTCC and the sum of one million dollars ($1,000,000) shall be allocated to WCC. Funds allocated for the purposes outlined in this section shall not revert but shall remain available until the end of the 2029‑2030 fiscal year.

COMPETENCY‑BASED HIGH SCHOOL AND HEALTHCARE AND HIGH‑TECH PATHWAYS PROGRAM

SECTION 2.2.(a)  Program Established; Purpose. – There is established the Competency‑Based High School and Healthcare and High‑Tech Pathways Program (Program). The purpose of the Program is to create pathways that will utilize competency‑based education (CBE). Pathways will result in obtaining either an associate degree or an industry recognized credential/certification/licensure based on the student's goal of employment or enrollment. Students will decide their college or career track at the end of their junior year with an initial emphasis on healthcare preparation.

SECTION 2.2.(b)  Participants. – Mooresville Graded School District (MGSD) shall partner with Mitchell Community College (MCC) to implement the Program.

SECTION 2.2.(c)  Program Time Line. – MGSD, in collaboration with MCC, shall contract with an organization with demonstrated expertise in designing and implementing learner‑centered, modular, and competency‑based high school programs that align with emerging healthcare and high‑tech career pathways. The organization shall have experience in co‑designing stackable credentials with public school units and higher education partners and a documented track record of developing digital infrastructure that supports student‑paced progression, interdisciplinary learning, and real‑world skill acquisition. This organization shall assist in developing a framework for the Program, including course design, sequencing, credentialing structure, and other elements necessary for personalized student progression during the 2026‑2027 school year. Students will have the opportunity to participate in a pathway provided by the Program by the 2028‑2029 school year at the latest.

SECTION 2.2.(d)  Program Flexibilities. – Notwithstanding any provision of law to the contrary, the following flexibilities shall be available to Program participants:

(1)        MGSD may offer Credit by Demonstrated Mastery assessments and CTE Proof of Learning assessments outside of existing State testing windows.

(2)        MCC may enroll MGSD students in community college courses prior to their eleventh grade year without the student meeting the requirements for ninth and tenth grade students pursuant to subdivision (4) of G.S. 115D‑20.

(3)        Students participating in the Program shall have access to all community college courses at MCC, regardless of pathway selection.

(4)        MGSD may replace any high school graduation credit requirement, except those outlined in this subdivision, with either community college courses offered by MCC or locally developed CBE courses that are consistent with the student's pathway. MGSD shall not replace any graduation credit requirements in the following subject areas:

a.         English.

b.         Mathematics.

c.         Science.

d.         Social Studies.

(5)        MGSD may operate any high school in the local school administrative unit consistent with the flexibilities of a school operating under a restart model pursuant to G.S. 115C‑105.37B(a)(2).

SECTION 2.2.(e)  Selection of Third‑Party Vendor. – MGSD shall select a third‑party vendor (Vendor) that is an educational support provider with a nationally recognized, research‑based instructional and leadership framework, including a High Reliability School model, a taxonomy of educational objectives aligned to classroom strategies, and a system for implementing personalized competency‑based education. The Vendor shall have published extensively in peer‑reviewed and practitioner literature, have an established track record of working directly with K‑12 schools and districts across multiple states, and offer professional development services, implementation support, and instructional resources developed and led by a founding education researcher with over four decades of influence in curriculum, instruction, and assessment.

SECTION 2.2.(f)  MGSD Partnership with Vendor. – MGSD shall partner with the Vendor selected pursuant to subsection (e) of this section to develop standards‑aligned proficiency scales for all content areas in grades nine through 12 to ensure educators in the participating schools have the tools necessary to successfully transition to CBE approaches. The Vendor shall provide professional development and coaching to the schools in MGSD to ensure educators can engage in learning about CBE approaches, including implementation of the proficiency scales developed by MGSD.

SECTION 2.2.(g)  Funding. – There is appropriated from the General Fund to the Department of Public Instruction the sum of four million dollars ($4,000,000) in nonrecurring funds for the 2026‑2027 fiscal year. These funds shall not revert but shall remain available until the end of the 2028‑2029 fiscal year. These funds shall be allocated to MGSD for the following purposes:

(1)        To contract with experts in CBE and designing stackable credentials pursuant to subsection (c) of this section.

(2)        To hire one additional staff member at MGSD to oversee implementation of the Program.

(3)        To partner with a Vendor pursuant to subsection (f) of this section.

LIGHTHOUSE MATH PROJECT

SECTION 2.3.(a)  Project Established; Purpose. – There is established the Lighthouse Math Project (Project). The purpose of the Project is to increase the percentage of high school students who are (i) eligible to complete college level mathematics upon graduation from high school and (ii) able to complete college level math either through dual enrollment while in high school or within the first year of college enrollment.

SECTION 2.3.(b)  Project Participants. – Wake Technical Community College (Wake Tech) shall partner with Wake County Public School System (WCPSS) for high school students at East Wake High School and Knightdale High School to be eligible to participate in the Project at the Wake Tech East campus of Wake Tech. Wake Tech and WCPSS shall partner with SparkNC to align the Project participants' ongoing efforts at the Wake Tech East campus with the design and implementation of the Project.

SECTION 2.3.(c)  Project Commitments. – WCPSS, in collaboration with Wake Tech, shall contract with Khan Academy, Inc., (Khan) for use of the artificial intelligence student tutoring program, Khanmigo. Students enrolling at participating high schools shall have access to Khanmigo from the time of enrollment in the high school and continuing through their attendance at Wake Tech if the student chooses to enroll at Wake Tech East. Wake Tech shall collaborate with Khan to do the following:

(1)        Develop and deliver at least one Khanmigo‑centered gateway college math course to be offered to high school students at participating high schools to be completed as a college level math course. This course shall also be available to students who graduate from participating high schools and enroll in the courses at Wake Tech East.

(2)        Develop a Khanmigo‑centered developmental math course sequence that will be provided by Wake Tech faculty to students from participating high schools in one of the following formats:

a.         As part of a Career and College Promise Career Ready Pathway.

b.         As supplement to a Career and College Promise Pathway.

c.         As a summer bridge program available to students prior to or subsequent to their junior and senior years of high school.

d.         As a community college course during the first semester of enrollment at Wake Tech.

SECTION 2.3.(d)  Modular Math Course. – As part of the Project, Khan, in consultation with Wake Tech and WCPSS, shall work to develop a self‑paced, competency‑based modular math course with appropriate student diagnostics and student assessments based on the college readiness math competencies provided as part of the Project. It is the intent that students successfully demonstrating college readiness math competencies will be eligible to enroll in college level math courses.

SECTION 2.3.(e)  Funding; DPI. – There is appropriated from the General Fund to the Department of Public Instruction the sum of five hundred thousand dollars ($500,000) in nonrecurring funds for the 2026‑2027 fiscal year to contract with Khan for licenses for the Khanmigo application and to create the course developed pursuant to subdivision (1) of subsection (c) of this section. Funds appropriated for the purposes laid out in this section shall not revert but shall remain available to accomplish the purposes of this section until the end of the 2027‑2028 fiscal year.

SECTION 2.3.(f)  Funding; NCCCS. – There is appropriated from the General Fund to the Community Colleges System Office the sum of up to one million dollars ($1,000,000) in nonrecurring funds for the 2026‑2027 fiscal year to be used to establish time‑limited positions at Wake Tech. Two positions shall be assigned to work in each participating high school to assist in the implementation of the courses offered by the Project. Funds appropriated for the purposes laid out in this section shall not revert but shall remain available to accomplish the purposes of this section until the end of the 2029‑2030 fiscal year.

COMPETENCY‑BASED EDUCATION AND HIGH SCHOOL REDESIGN STRATEGIC NETWORK

SECTION 2.4.  Mooresville Graded School District, Mitchell Community College, Wake Technical Community College, Wake County Public School System, Fayetteville Technical Community College, Wilkes Community College, and SparkNC shall collaborate to create a Competency‑Based Education and High School Redesign Strategic Network (Network). The president of SparkNC, or the president's designee, shall serve as the chair of the Network. The chair shall coordinate the operations of the Network and provide administrative and technical support for the Network to the extent such support is necessary. The Network shall provide a means for each entity to share what it has learned and developed regarding CBE and high school redesign. The goals of the Network shall be to advance the goals of developing a CBE approach to education across the State.

COMPETENCY‑BASED INNOVATION GRANT PROGRAM

SECTION 2.5.(a)  Program Established; Purpose. – There is established the North Carolina Competency‑Based Education Innovation Grant and Network Program (Program). The purpose of the Program is to provide funding and support to schools and districts to support the transition to competency‑based education (CBE) models that focus on mastery of learning rather than instructional time. The grant aims to promote innovative instructional practices, flexible assessment models, and systemic shifts to ensure all students progress based on demonstrated proficiency.

SECTION 2.5.(b)  Program Objectives. – The objectives of the Program are as follows:

(1)        Redesign Learning Pathways. – Support schools and districts in developing personalized CBE models that allow students to progress at their own pace.

(2)        Assessment Innovation. – Utilize formative and performance‑based assessments that measure student mastery of skills and knowledge, including the use of AI learning tools.

(3)        Educator Capacity Building. – Provide common professional development for educators on instructional strategies and assessment practices aligned with transitioning to CBE.

(4)        Develop Strategies for Statewide Scaling and Best Practices. – Develop and share resources, implementation strategies, and lessons learned to expand CBE across North Carolina.

SECTION 2.5.(c)  Phase One. – The first phase of the Program shall begin with the 2026‑2027 school year and continue until the conclusion of the 2029‑2030 school year. Public school units shall submit applications and complete any planning or organizational duties during the 2026‑2027 school year with implementation of CBE in participating schools beginning with the 2027‑2028 school year.

SECTION 2.5.(d)  Application. – The Department of Public Instruction shall create an application for the Program and make the application available to all public school units no later than 60 days after this act becomes law. Public school units shall submit their applications to the Department no later than 60 days after the application becomes available. The Department shall select 10 schools to participate in the Program no later than 60 days after the close of the application period. When selecting schools to participate in the Program, the Department shall prioritize schools that show a strong commitment to implementing CBE and innovation in assessment. The Department shall develop criteria to determine which schools are most ready to transition to CBE. The application shall include at least the following:

(1)        A comprehensive plan outlining the school's vision for competency‑based education.

(2)        A description of instructional and assessment shifts to be implemented.

(3)        A budget for use of grant funds and a sustainability plan to continue utilizing CBE after the conclusion of Phase One.

(4)        Commitments from public school units leadership and stakeholders.

SECTION 2.5.(e)  Grant Funds; Use; Training. – Grant awards shall be in the amount of three hundred thirty thousand dollars ($330,000) to each participating school. Participating schools shall use the sum of ninety‑five thousand dollars ($95,000) each school year to receive training on the implementation of CBE in the school. The remaining grant funds shall be used for costs associated with the transition to CBE, including travel costs and CBE resources. Grant funds shall remain available until the end of the 2029‑2030 fiscal year.

SECTION 2.5.(f)  Selection of Third‑Party Vendor. – The Department shall select a third‑party vendor (Vendor) that is an educational support provider with a nationally recognized, research‑based instructional and leadership framework, including a High Reliability School model, a taxonomy of educational objectives aligned to classroom strategies, and a system for implementing personalized competency‑based education. The provider must have published extensively in peer‑reviewed and practitioner literature, have an established track record of working directly with K–12 schools and districts across multiple states, and offer professional development services, implementation support, and instructional resources developed and led by a founding education researcher with over four decades of influence in curriculum, instruction, and assessment.

SECTION 2.5.(g)  Department Partnership with Vendor. – The Department shall partner with the Vendor selected pursuant to subsection (f) of this section to develop publicly available, standards‑aligned proficiency scales for all content areas and grade levels to ensure educators in the participating schools have the tools necessary to successfully transition to CBE approaches. The Vendor shall provide annual professional development events throughout the regions of the State to ensure educators can engage in learning about CBE approaches, including implementation of the proficiency scales developed by the Department.

SECTION 2.5.(h)  Department Duties. – The Department of Public Instruction shall do the following as part of the Program:

(1)        Develop, in collaboration with the Vendor, a CBE Network to support the long‑term transition to CBE. The CBE Network shall do the following:

a.         Provide strategic guidance and policy recommendations for scaling CBE statewide.

b.         Facilitate collaboration among grant recipients, educators, policymakers, and CBE industrial leaders.

c.         Develop a long‑term roadmap for CBE implementation statewide.

d.         Offer professional learning communities and shared online resources to support ongoing innovation and capacity building.

e.         Develop methods of measuring proficiency for all courses offered as part of the standard course of study in kindergarten through grade 12, with support from the Vendor.

f.          Disseminate developed proficiency measures to all public school units and post standards developed to align with the proficiency measures online on a publicly accessible website.

g.         Conduct research and evaluation to inform best practices and continuous improvement in participating schools.

(2)        Provide support and technical assistance, professional learning opportunities, and access to the CBE network for all grant recipients.

SECTION 2.5.(i)  Reporting; Participants. – Each participating school shall submit a quarterly progress report to the Department detailing implementation of CBE in the school. The Department shall establish the due dates and mechanism for the submission of the progress reports. Progress shall include available student learning outcome data, including evidence of progress toward content mastery.

SECTION 2.5.(j)  Reporting; Department. – The Department of Public Instruction shall submit a final report on the outcomes of Phase One of the Program to the Joint Legislative Education Oversight Committee by December 1, 2030. The report shall include the following:

(1)        A summary of student outcomes reported by participating schools.

(2)        Any challenges experienced by participating schools or the Department with implementation of the Program.

(3)        Recommendations for scaling the Program statewide.

(4)        Any other information the Department deems relevant.

(5)        Any information requested by the Committee.

SECTION 2.5.(k)  Appropriation. – There is appropriated from the General Fund to the Department of Public Instruction the sum of five million three hundred thousand dollars ($5,300,000) in nonrecurring funds to implement the provisions of this section. Funds appropriated in this section shall not revert but shall remain available until the end of the 2029‑2030 fiscal year.

OFFICE OF LEARNING RESEARCH EVALUATION

SECTION 2.6.(a)  Study and Evaluation. – The Office of Learning Research at the North Carolina Collaboratory shall study and evaluate the programs and initiatives established pursuant to this Part and report to the Joint Legislative Education Oversight Committee by March 15, 2028, and annually thereafter, culminating in a final report on March 15, 2031. Reports shall include at least the following:

(1)        The total number of students engaging with these programs.

(2)        The total amount of funds expended to implement, design, and operate the programs.

(3)        Effects on student achievement and learning outcomes.

SECTION 2.6.(b)  Funding. – There is appropriated from the General Fund to the Board of Governors of The University of North Carolina the sum of four hundred fifty thousand dollars ($450,000) in nonrecurring funds for the 2026‑2027 fiscal year to be allocated to the North Carolina Collaboratory for the Office of Learning Research to conduct the study and evaluation required by this section.

part iii. effective date

SECTION 3.  Except as otherwise provided, this act becomes effective July 1, 2026.