AN ACT to make changes to teacher licensure requirements and to revive AND EXPAND THE PROGRAM TO ALLOW RETIRED EDUCATORS TO RETURN TO WORK IN HIGH‑NEED SCHOOLS.

The General Assembly of North Carolina enacts:

part i. Teacher licensure changes

SECTION 1.1.(a)  G.S. 115C‑270.20(a)(4a) reads as rewritten:

(4a)    Limited license. – A three‑year nonrenewable renewable license issued to an individual who meets the requirements of this subdivision. A limited license shall only be requested by the local board of education currently employing or seeking to employ the individual and shall be used for continued employment only in that local school administrative unit. The State Board shall not require individuals to demonstrate preparation through achieving a prescribed minimum score on a standardized examination for a limited license. To receive a limited license, one of the following shall be met:

a.         In‑state licensee. – Both of the following are met:

1.         The individual was issued an IPL or RL, but failed to fulfill examination requirements under G.S. 115C‑270.15 after three years of licensure.

2.         The local board of education submits to the State Board an affidavit stating that the teacher is currently employed by that local board, is an effective teacher, and will be encouraged to continue to pursue a CPL. The affidavit shall be signed by both the principal and superintendent for the school to which the teacher is currently assigned.

b.         Out‑of‑state licensee. – Both of the following are met:

1.         The individual holds current teacher licensure in another state that is in good standing.

2.         The local board of education submits to the State Board an affidavit stating that the local board seeks to employ the teacher, that the teacher has been employed as a licensed teacher in another state for at least three years, and that the teacher will be encouraged to pursue an IPL or CPL, as appropriate for that teacher. The affidavit shall be signed by the superintendent for the local board of education seeking to employ the teacher.

For renewal of a limited license, the local board of education shall evaluate the teacher's effectiveness every three years. For teachers that teach subjects that use the Education Value‑Added Assessment System (EVAAS), the data must demonstrate that the teacher meets or exceeds expectations of growth as measured by EVAAS, if available.

SECTION 1.1.(b)  This section applies (i) to any teacher who holds a limited license as nonrenewable as of the date this act becomes law and (ii) beginning with applications submitted on or after the date this act becomes law.

SECTION 1.2.(a)  The State Board of Education, in consultation with the Department of Public Instruction and the Professional Educator Preparation and Standards Commission (PEPSC), shall develop an alternative to the examination requirements for conversion from an initial professional license (IPL) and a residency license (RL) to a continuing professional license (CPL) under G.S. 115C‑270.15. The alternative to the examination shall provide for a process to accommodate different circumstances in which the examination may not be required or be the most appropriate or efficient pathway of evaluating a teacher's readiness or effectiveness for licensure.

In addition, the State Board, in consultation with the Department and PEPSC, shall examine issues related to licensure classes and teacher salary, including ways to increase recruitment and retention by directly corresponding classes of licensure with amount of compensation. In conducting the study, the State Board shall identify any changes in State law necessary for any proposed recommendations resulting from the findings.

SECTION 1.2.(b)  By February 15, 2024, the State Board, in consultation with the Department and PEPSC, shall report to the Joint Legislative Education Oversight Committee on (i) the development of the alternative to examination requirements for conversion of IPLs and RLs to CPLs, (ii) any proposed salary incentives tied to classes of licensure, and (iii) any legislative changes needed for implementation of the recommendations.

SECTION 1.3.(a)  G.S. 115C‑270.1 reads as rewritten:

§ 115C‑270.1.  Definitions.

As used in this Article, the following definitions shall apply:

(1)        Administrator. – An administrator or supervisor who serves in general and program administrator roles, as classified by the State Board. Administrators shall include superintendents, assistant or associate superintendents, principals, assistant principals, or curriculum‑instructional specialists.

(2)        Professional educator. – An administrator, teacher, or student services personnel.

(3)        Recognized educator preparation program or recognized EPP. – As defined in G.S. 115C‑269.1(15).

(3a)      Servicemember. – A member of the uniformed services, as that term is defined in section 101(a)(5) of Title 10 of the United States Code. For purposes of this Article, servicemember shall include the spouse of a servicemember.

(4)        Student services personnel. – An individual providing specialized assistance to students, teachers, administrators, or the education program in general, as classified by the State Board. Student services personnel shall include individuals employed in school counseling, school social work, school psychology, audiology, speech‑language pathology, and media coordination.

(5)        Teacher. – An individual whose major responsibility is to either teach or directly supervise teaching, as classified by the State Board.

SECTION 1.3.(b)  Article 17E of Chapter 115C of the General Statutes is amended by adding a new section to read:

§ 115C‑270.22.  Servicemember transfer applicants.

(a)        Servicemembers who (i) possess a teaching license issued by an entity other than the State Board of Education and (ii) relocate to the State because of military orders for military service shall be granted a teaching license for the duration of the military orders if the servicemember meets all of the following criteria:

(1)        The servicemember provides to the State Board a copy of the military orders that require the servicemember to relocate to the State.

(2)        The servicemember remains in good standing with the following:

a.         The licensing authority that issued the license held by the service member.

b.         Every other licensing authority that has issued to the servicemember a license similar in scope to a teaching license.

(3)        The servicemember submits to the authority of the State Board for purposes of standards of practice, discipline, and fulfillment of any continuing education requirements.

(b)        The State Board shall adopt rules to determine which class of teacher license shall be issued to servicemembers, pursuant to this section.

(c)        If a servicemember is transferred out of the State on military orders for military service during a school year, a license granted pursuant to this section shall terminate at the end of the school year during which the member was transferred.

SECTION 1.3.(c)  G.S. 93B‑15.1 reads as rewritten:

§ 93B‑15.1.  Licensure for individuals with military training and experience; proficiency examination; licensure by endorsement for military spouses; temporary license.

…

(h1)      Nothing in this section shall be construed to prevent a servicemember, as defined in G.S. 115C‑270.1, from applying for or being issued a teaching license under G.S. 115C‑270.22.

….

SECTION 1.3.(d)  The State Board of Education shall adopt temporary rules to comply with this section. Temporary rules adopted in accordance with this subsection shall remain in effect until permanent rules that replace the temporary rules become effective.

SECTION 1.3.(e)  This section is effective when it becomes law.

Part II. revive AND EXPAND THE PROGRAM TO ALLOW RETIRED EDUCATORS TO RETURN TO WORK IN HIGH‑NEED SCHOOLS

SECTION 2.(a)  G.S. 115C‑302.4 is reenacted as it existed immediately prior to its expiration and expires effective June 30, 2027.

SECTION 2.(b)  G.S. 115C‑302.4, as reenacted by this act, reads as rewritten:

§ 115C‑302.4.  High‑need retired teachers.

(a)        Definitions. – The following definitions apply in this section:section, unless the context requires otherwise:

(1)        High‑need retired teacher. – A teacher who is a beneficiary of the Teachers' and State Employees' Retirement System of North Carolina who meets both of the following requirements:

a.         Retired on or before February 1, 2019, after attaining (i) the age of at least 65 with five years of creditable service, (ii) the age of at least 60 with 25 years of creditable service, or (iii) 30 years of creditable service.

b.         Is reemployed by a local board of education to provide classroom instruction as a teacher, as defined in G.S. 135‑1(25), employed on an annual contract to provide classroom instruction exclusively at a high‑need school or schools.

(2)        High‑need school. – A school that, at any point on or after July 1, 2017, meets one of the following criteria:

a.         Is a Title I school. As used in this sub‑subdivision, a Title I school is a school identified under Part A of Title I of the Elementary and Secondary Education Act of 1965, as amended.

b.         Receives an overall school performance grade of D or F, as calculated by the State Board of Education pursuant to G.S. 115C‑83.15(d).

(3)        STEM. – Science, technology, engineering, and mathematics.

(4)        Teacher. – Licensed personnel who are classified as teachers or instructional support personnel.

(b)        Salary Level. – A high‑need retired teacher shall be compensated as follows:

(1)        Except as provided in subdivision (2) of this subsection, a high‑need retired teacher shall be paid on the first step of the teacher salary schedule.

(2)        If a high‑need retired teacher serves as a teacher in any of the following licensure areas, meets any of the following criteria, he or she shall be paid on the sixth step of the teacher salary schedule:

a.         Provides classroom instruction in any of the following licensure areas:

a.1.      STEM.

b.2.      Special education.

b.         Is any of the following:

1.         A school psychologist.

2.         A school speech pathologist who is licensed as a speech pathologist at the master's degree level or higher.

3.         A school audiologist who is licensed as an audiologist at the master's degree level or higher.

(c)        No State Salary Supplements or Increase in Salary. – A high‑need retired teacher shall not receive any State salary supplement or State bonus. A high‑need retired teacher shall not move beyond the salary steps prescribed by subsection (b) of this section, regardless of the length of time spent as a high‑need retired teacher.

(d)       Local Salary Supplement. – A high‑need retired teacher shall receive any local salary supplements that are given to employees of the local board of education.

(e)        Term of Contract. – A contract between the local board of education and a high‑need retired teacher shall be for a term of no more than one school year.

(f)        Identification of STEM and Special Education Licensure Areas. – The Superintendent of Public Instruction shall identify and provide to each local school administrative unit a list of STEM and special education licensure areas that qualify for reemployment pursuant to subdivision (b)(2) of this section. Local school administrative units shall make the list of STEM and special education licensure areas available to high‑need retired teachers.

SECTION 2.(c)  G.S. 135‑3(8) is amended by adding a new sub‑subdivision to read:

h.        Notwithstanding sub‑subdivisions c. and d. of this subdivision, the computation of postretirement earnings of a beneficiary under this subdivision, who retired on or before February 1, 2019, and who has been retired at least six months, shall not include earnings while the beneficiary is employed as a high‑need retired teacher, as defined under G.S. 115C‑302.4(a)(1), and the beneficiary shall not be restored to service as a teacher or employee. The Department of Public Instruction shall certify to the Retirement System that a beneficiary is employed by a local board of education as a high‑need retired teacher, as defined under G.S. 115C‑302.4(a)(1). A local board of education shall inform the Retirement System, no later than September 15 annually, if it will not employ high‑need retired teachers, as defined under G.S. 115C‑302.4(a)(1), for that school year. The retirement allowance of a beneficiary who retired on an early or service retirement shall not cease due to reemployment as a high‑need retired teacher, as defined under G.S. 115C‑302.4(a)(1). A beneficiary reemployed as a high‑need retired teacher is not entitled to any benefits otherwise provided under this Chapter as a result of this period of employment.

SECTION 2.(d)  G.S. 135‑3(8)c1. reads as rewritten:

c1.      Within 90 days of the end of each month in which a beneficiary is reemployed under the provisions of sub‑subdivision sub‑subdivisions c. and h. of this subdivision, each employer shall provide a report for that month on each reemployed beneficiary, including the terms of the reemployment, the date of the reemployment, and the amount of the monthly compensation. If the required report is not received within the required 90 days, the Board may do any or all of the following:

1.         Assess the employer with a penalty of ten percent (10%) of the compensation of the unreported reemployed beneficiaries during the months for which the employer did not report the reemployed beneficiaries, with a minimum penalty of twenty‑five dollars ($25.00). If after being assessed a penalty, an employer provides clear and convincing evidence that the failure to report resulted from a lack of oversight or some other event beyond the employer's control and was not a deliberate attempt to omit the reporting of reemployed beneficiaries, the Board may reduce the penalty to not less than two percent (2%) of the compensation of the unreported reemployed beneficiaries during the months for which the employer failed to report, with a minimum penalty of twenty five dollars ($25.00).

2.         Require the employer to reimburse the Retirement System for any retirement allowance paid to the beneficiary during a period when the allowance would have been suspended under sub‑subdivision c. of this subdivision had the report been received within the required 90 days.

3.         Require the employer to pay any amounts that the beneficiary would have been required to pay to the Retirement System under sub‑subdivision f. of this subdivision had the report been received within the required 90 days.

Upon receipt by the employer of notice that any payment is due to the Retirement System under this sub‑subdivision, the employer shall remit the payment of the amount due to the Retirement System, in one lump sum, no later than 90 days from the date of the notice.

If an employer is required to make payments to the Retirement System under sub‑sub‑subdivision 2. or sub‑sub‑subdivision 3. of this sub‑subdivision, then (i) the beneficiary shall have no obligation to reimburse the Retirement System for related amounts under sub‑subdivisions c. or f. of this subdivision, (ii) the provisions of G.S. 135‑9(b) relating to offsetting overpayments against payments made from the Retirement System to the member or beneficiary shall not apply, (iii) the Retirement System shall have no duty under G.S. 143‑64.80 to pursue repayment of overpayments from the beneficiary, (iv) the overpayments shall not be considered a debt of the beneficiary under Chapter 105A of the General Statutes, and (v) the beneficiary's effective date of retirement shall be adjusted if the adjustment is required under sub‑subdivision f. of this subdivision.

SECTION 2.(e)  G.S. 135‑1(10) reads as rewritten:

(10)    Employee shall mean all full‑time employees, agents or officers of the State of North Carolina or any of its departments, bureaus and institutions other than educational, whether such employees are elected, appointed or employed: Provided that the term employee shall not include any person who is a member of the Consolidated Judicial Retirement System, any member of the General Assembly or Assembly, any part‑time or temporary employee. employee, or any high‑need retired teacher as defined under G.S. 115C‑302.4(a)(1). Notwithstanding any other provision of law, employee shall include all employees of the General Assembly except participants in the Legislative Intern Program, pages, and beneficiaries in receipt of a monthly retirement allowance under this Chapter who are reemployed on a temporary basis. Employee also includes any participant whose employment is interrupted by reason of service in the Uniformed Services, as that term is defined in section 4303(16) of the Uniformed Services Employment and Reemployment Rights Act, Public Law 103‑353, if that participant was an employee at the time of the interruption; if the participant does not return immediately after that service to employment with a covered employer in this System, then the participant shall be deemed in service until the date on which the participant was first eligible to be separated or released from his or her involuntary military service. In all cases of doubt, the Board of Trustees shall determine whether any person is an employee as defined in this Chapter. Employee shall also mean every full‑time civilian employee of the North Carolina National Guard who is employed pursuant to section 709 of Title 32 of the United States Code and paid from federal appropriated funds, but held by the federal authorities not to be a federal employee: Provided, however, that the authority or agency paying the salaries of such employees shall deduct or cause to be deducted from each employee's salary the employee's contribution in accordance with applicable provisions of G.S. 135‑8 and remit the same, either directly or indirectly, to the Retirement System; coverage of employees described in this sentence shall commence upon the first day of the calendar year or fiscal year, whichever is earlier, next following the date of execution of an agreement between the Secretary of Defense of the United States and the Adjutant General of the State acting for the Governor in behalf of the State, but no credit shall be allowed pursuant to this sentence for any service previously rendered in the above‑described capacity as a civilian employee of the North Carolina National Guard: Provided, further, that the Adjutant General, in the Adjutant General's discretion, may terminate the Retirement System coverage of the above‑described North Carolina National Guard employees if a federal retirement system is established for such employees and the Adjutant General elects to secure coverage of such employees under such federal retirement system. Any full‑time civilian employee of the North Carolina National Guard described above who is now or hereafter may become a member of the Retirement System may secure Retirement System credit for such service as a North Carolina National Guard civilian employee for the period preceding the time when such employees became eligible for Retirement System coverage by paying to the Retirement System an amount equal to that which would have constituted employee contributions if the employee had been a member during the years of ineligibility, plus interest. Employees of State agencies, departments, institutions, boards, and commissions who are employed in permanent job positions on a recurring basis must work at least 30 hours per week for nine or more months per calendar year in order to be covered by the provisions of this subdivision. subdivision, except that no high‑need retired teacher as defined under G.S. 115C‑302.4(a)(1) shall be considered an employee. On and after August 1, 2001, a person who is a nonimmigrant alien and who otherwise meets the requirements of this subdivision shall not be excluded from the definition of employee solely because the person holds a temporary or time‑limited visa.

SECTION 2.(f)  G.S. 135‑48.40(b)(1a) reads as rewritten:

(1a)    All retirees who (i) are employed by an employing unit that elects to be covered by this subdivision, (ii) do not qualify for coverage under subdivision (1) of this subsection, and (iii) are determined to be full‑time by their employing unit in accordance with section 4980H of the Internal Revenue Code and the applicable regulations, as amended. amended, or are high‑need retired teachers, as defined under G.S. 115C‑302.4(a)(1). The employing unit shall pay the employer premiums for retirees who enroll under this subdivision.

SECTION 2.(g)  The State Treasurer may seek a private letter ruling from the Internal Revenue Service to determine if the provisions of this section relating to the computation of postretirement earnings of retired teachers jeopardize the status of the Teachers' and State Employees' Retirement System.

SECTION 2.(h)  Notwithstanding any other provision of law to the contrary, in order to pay costs associated with the administration of the provisions of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Teachers' and State Employees' Retirement System or pay costs associated with the administration directly from the retirement assets.

SECTION 2.(i)  Any beneficiary that is employed by a local board of education as a high‑need retired teacher, as defined in G.S. 115C‑302.4(a)(1), shall not be eligible to elect into a position that would lead him or her to be eligible to accrue any additional benefits under G.S. 135‑3(8). Any failure of a local board of education or a beneficiary to comply with the foregoing shall be corrected by the Retirement System as it determines may be appropriate under State and federal law. Any costs of the correction, as determined by the Retirement System, shall be the sole responsibility of the local board of education and shall be transferred to the Pension Accumulation Fund under G.S. 135‑8, under rules adopted by the Board of Trustees.

SECTION 2.(j)  This section is effective when this act becomes law and expires June 30, 2027.

Part iii. effective date

SECTION 3.  Except as otherwise provided, this act is effective when it becomes law.