AN ACT to provide funds to classroom teachers for the purchase of classroom supplies.

The General Assembly of North Carolina enacts:

SECTION 1.  Establishment of the Program. – There is established the North Carolina Classroom Supply Program (Program) in accordance with this act. The Program shall provide for electronic access to funds for eligible classroom teachers to purchase supplies for their classrooms on behalf of public school units participating in the Program to support educational needs of the public school students assigned to those classroom teachers.

SECTION 2.  Definitions. – For purposes of this section, the following definitions apply:

(1)        Eligible classroom teacher. – Any school‑based classroom teacher, including teachers for special student populations, such as exceptional children, reading resource, English language learners, and program enhancement courses, employed by a public school unit to teach students in grades kindergarten through 12. School personnel in central office positions, instructional support personnel, and school‑based administrators shall not be deemed eligible. A classroom teacher must be employed as of August 31 of each fiscal year from any funds available to the public school unit to be eligible under this section. The public school unit may include classroom teachers employed after August 31 within funds available.

(2)        Public school unit. – A local school administrative unit, a charter school, a regional school, and a school providing elementary or secondary instruction operated by the State Board of Education, including schools operated under Article 7A and Article 9C of Chapter 115C of the General Statutes, or by The University of North Carolina, including schools operated under Article 4, Article 29, and Article 29A of Chapter 116 of the General Statutes.

SECTION 3.  Availability of Funds to Teachers. – Beginning with the 2022‑2023 fiscal year, from the funds allocated to each local school administrative unit as provided in Section 6 of this act, each local school administrative unit shall transfer the sum of one hundred dollars ($100.00) per eligible classroom teacher as of August 31 each year to a program report code for a classroom teacher electronic account administered pursuant to Section 5 of this act. A public school unit, other than a local school administrative unit, may opt in to the Program by August 1 of the fiscal year using funds available to that public school unit. The local school administrative unit operating a renewal school system plan pursuant to Section 6 of S.L. 2018‑32 may also opt in to the Program using funds available in accordance with this section.

SECTION 4.  Use of Funds for the Program. – The funds appropriated for the Program shall be used by eligible classroom teachers to supplement the materials and supplies otherwise available to classroom teachers. A public school unit shall not mandate, direct, or encourage eligible classroom teachers to purchase specific materials and supplies or categories of materials and supplies. Eligible classroom teachers shall utilize these funds in a manner that addresses individual classroom needs and supports the overall goals of the school regarding supplies and instructional materials. Any supplies purchased by teachers through the Program shall be the property of the public school unit. Supplies not consumed during the school year shall be made available to the teacher for the following school year or for other eligible classroom teachers as appropriate. Any unexpended funds in the classroom teacher accounts established by this act shall revert to the General Fund at the end of each fiscal year.

SECTION 5.(a)  Program Administration. – The Department of Public Instruction shall utilize the same administrative system used by the State Education Assistance Authority (Authority) to manage funds for the Personal Education Savings Account Program pursuant to G.S. 115C‑597 to establish classroom teacher electronic accounts for the Program and shall model its contract in a manner that meets the requirements of this act and includes capabilities for at least the following:

(1)        The ability to categorize allowable purchases, which may include an automated prior authorization process for allowable purchases or reimbursement of allowable purchases.

(2)        Automation for the capture of purchase receipts, which shall be required for the Department of Public Instruction and the teacher to store electronically for a total of four years for reporting and audit purposes, and transparent transactions, making accountability and tracking simple.

(3)        Ability for teachers to crowdfund for certain products.

SECTION 5.(b)  Alternative Vendor. – In the event that the vendor contracted with the Authority described under subsection (a) of this section is unable to meet the requirements of the Program, then the Department shall contract with a vendor that provides a virtual e‑wallets platform and an e‑commerce marketplace that enables teachers to receive and spend funds online and includes the capabilities described in subsection (a) of this section.

SECTION 6.  Appropriation. – There is appropriated from the General Fund to the Department of Public Instruction the sum of ten million two hundred thousand dollars ($10,200,000) in recurring funds for the 2022‑2023 fiscal year to be allocated to local school administrative units for eligible classroom teachers to purchase classroom supplies and for administrative costs under the Program pursuant to this act.

SECTION 7.  Report. – The Department of Public Instruction shall report to the Joint Legislative Education Oversight Committee, the Fiscal Research Division, the House Appropriations Committee on Education, and the Senate Appropriations Committee on Education/Higher Education by March 15, 2023, and annually thereafter, on purchases made by eligible classroom teachers by each public school unit.

SECTION 8.  This act becomes effective July 1, 2021.