North Carolina § 115C-218 - 105. State and local funds for a charter school.

§ 115C-218. 105. State and local funds for a charter school.

The State Board of Education shall allocate to each charter school: An amount equal to the average per pupil allocation for average daily membership from the local school administrative unit allotments in which the charter school is located for each child attending the charter school except for the allocation for children with disabilities and for the allocation for children with limited English proficiency; An additional amount for each child attending the charter school who is a child with disabilities; and An additional amount for children with limited English proficiency attending the charter school, based on a formula adopted by the State Board. Funds allocated by the State Board of Education may be used to enter into operational and financing leases for real property or mobile classroom units for use as school facilities for charter schools and may be used for payments on loans made to charter schools for facilities, equipment, or operations. However, State funds shall not be used to obtain any other interest in real property or mobile classroom units. The school also may own land and buildings it obtains through non-State sources. No indebtedness of any kind incurred or created by the charter school shall constitute an indebtedness of the State or its political subdivisions, and no indebtedness of the charter school shall involve or be secured by the faith, credit, or taxing power of the State or its political subdivisions. Every contract or lease into which a charter school enters shall include the previous sentence. If a student attends a charter school, the local school administrative unit in which the child resides shall transfer to the charter school an amount equal to the per pupil share of the local current expense fund of the local school administrative unit for the fiscal year. The per pupil share of the local current expense fund shall be transferred to the charter school within 30 days of the later of (i) the receipt of monies into the local current expense fund or (ii) the receipt by a local school administrative unit of the enrollment verification and transfer request document as provided under subsections (c2) and (c3) of this section from the charter school. Charter schools shall send the enrollment verification and transfer request document to the local school administrative units on a monthly basis. If the local school administrative unit receives additional monies into the local current expense fund following the initial transfer to the charter school, the local school administrative unit shall transfer the per pupil share of those additional monies to the charter school within 30 days of receipt of those monies. If a local school administrative unit receives written notice directed to the superintendent and school finance officer from a charter school that the per pupil share of the local current expense fund has not been transferred as required by subsection (c) of this section, the local school administrative unit shall pay a late fee of three percent (3%) on the amount if the monies are not electronically transferred or, if mailed, not postmarked within 15 days of the notice. Interest on the amount owed to the charter school shall accrue at eight percent (8%) annually until the transfer is made. A local school administrative unit shall not owe late fees and interest on (i) any amounts not owed under subsection (c) of this section or (ii) per pupil amounts owed for any student whose information is ultimately shown to be materially incorrect on the enrollment verification and transfer request document shared with the local school administrative unit. A local school administrative unit shall be given an additional 30 days to make the transfer of the per pupil share of the local current expense fund to a charter school for any month in which the charter school fails to send the enrollment verification and transfer request document with the information required by subsection (c2) of this section. The Superintendent of Public Instruction shall, in consultation with charter schools and local school administrative units, create a standardized enrollment verification and transfer request document that each charter school shall use to request the per pupil share of the local current expense fund from the local school administrative units. Charter schools shall only be required to list the name, age, grade, address, date of charter enrollment, date of charter withdrawal, district of residence, and student identification number of each student as provided to the charter school by the student's parent or guardian in the enrollment verification and transfer request document that the charter school submits to the local school administrative units. A charter school, in its discretion, may take further steps to confirm the student's residence in a particular local school administrative unit. The Superintendent of Public Instruction shall, in consultation with charter schools and local school administrative units, create a standardized procedure that local school administrative units shall use when transferring the per pupil share of the local current expense fund to charter schools. The standardized procedure for transfer of the per pupil share of the local current expense fund shall require, to the extent practicable, that the local school administrative units make the transfers by electronic transfer. The local school administrative unit and charter school may use the process for mediation of differences between the State Board and a charter school provided in G.S. 115C-218.95(d) to resolve differences on calculation and transference of the per pupil share of the local current expense fund. In the event the local school administrative unit and the charter school disagree on the amount owed to the charter school, the local school administrative unit may delay transfer of the disputed amount but shall not delay the transfer of the undisputed amount. The amount transferred under this subsection that consists of revenue derived from supplemental taxes shall be transferred only to a charter school located in the tax district for which these taxes are levied and in which the student resides. The local school administrative unit shall also provide each charter school to which it transfers a per pupil share of its local current expense fund with all of the following information within the 30-day time period provided in subsection (c) of this section: The total amount of monies the local school administrative unit has in each of the funds listed in G.S. 115C-426(c). The student membership numbers used to calculate the per pupil share of the local current expense fund. How the per pupil share of the local current expense fund was calculated. Any additional records requested by a charter school from the local school administrative unit in order for the charter school to audit and verify the calculation and transfer of the per pupil share of the local current expense fund. Prior to commencing an action under subsection (c) of this section, the complaining party shall give the other party 15 days' written notice of the alleged violation. The court shall award the prevailing party reasonable attorneys' fees and costs incurred in an action under subsection (c) of this section. The court shall order any delinquent funds, costs, fees, and interest to be paid in equal monthly installments and shall establish a time for payment in full that shall be no later than one year from the entry of any judgment. Charter schools may request appropriations directly from cities, as authorized by G.S. 160A-700. In accordance with G.S. 115C-218.7 and G.S. 115C-218.8 , the State Board shall allow for annual adjustments to the amount allocated to a charter school based on its enrollment growth in school years subsequent to the initial year of operation. In the event a child with disabilities leaves the charter school and enrolls in a public school during the first 60 school days in the school year, the charter school shall return a pro rata amount of funds allocated for that child to the State Board, and the State Board shall reallocate those funds to the local school administrative unit in which the public school is located. In the event a child with disabilities enrolls in a charter school during the first 60 school days in the school year, the State Board shall allocate to the charter school the pro rata amount of additional funds for children with disabilities. In addition, the local school administrative unit shall provide to the State Board of Education all of the information required by this subsection for each charter school to which it transfers a per pupil share of its local current expense fund. This information shall be provided to the State Board of Education by November 1 of each year. The State Board shall adopt a policy to govern the collection of this information. The State Board shall issue a letter of noncompliance to a local school administrative unit that does not provide the State Board with the information required by this subsection. History (1995 (Reg. Sess., 1996), c. 731, s. 2; 1997-430, s. 7; 1998-212, s. 9.20(f); 2003-423, s. 3.1; 2006-69, s. 3(f); 2013-355, s. 1(h); 2014-101, ss. 5.2, 5.6, 7; 2016-79, s. 1.6; 2017-173, s. 7; 2018-5, s. 38.8(d); 2021-79, s. 1.) Virtual Charter School Pilot Program. - Session Laws 2014-100, s. 8.35(a)-(g), as amended by Session Laws 2016-94, s. 8.13(a), and as amended by Session Laws 2018-5, s. 7.13, provides: "(a) Notwithstanding G.S. 115C-218.5 or any other provision of law to the contrary, the State Board of Education shall establish a pilot program to authorize the operation of two virtual charter schools serving students in kindergarten through twelfth grade. The State Board shall establish an application process to allow student enrollment in the selected virtual charter schools beginning with the 2015-2016 school year. A virtual charter school participating in the pilot may serve any grade span of students in kindergarten through twelfth grade. The pilot program shall continue for a period of eight school years and shall end with the 2022-2023 school year. "(b) The virtual charter schools participating in the pilot program authorized by this section shall be subject to the statutes and rules applicable to charter schools pursuant to Article 14A of Chapter 115C of the General Statutes, except as follows: "(1) The maximum student enrollment in any participating school shall be no greater than 1,500 in its first year of operation and may increase by twenty percent (20%) for each participating school up to a maximum student enrollment of 2,592 in the fourth year of the pilot. The State Board of Education may waive this maximum student enrollment threshold, beginning in the fourth year of the school's operation, if the State Board determines that doing so would be in the best interest of North Carolina students. "(2) The maximum overall ratio of teachers to students for kindergarten through eighth grade shall be 1:50, and for ninth through twelfth grade shall be 1:150. "(3) A student who regularly fails to participate in courses may be withdrawn from enrollment pursuant to procedures adopted by the virtual charter school. The procedures adopted by the virtual charter school shall ensure that (i) fair notice is provided to the parent and student and (ii) an opportunity is provided, prior to withdrawal of the student by the school, for the student and parent to demonstrate that failure to participate in courses is due to a lawful absence recognized under Part I of Article 26 of Chapter 115C of the General Statutes and any applicable rules adopted by the State Board of Education. "(c) In addition to the operating requirements applicable to a virtual charter school participating in the pilot program pursuant to Article 14A of Chapter 115C of the General Statutes, the following requirements shall apply to a participating virtual charter school: "(1) The school shall maintain an administrative office within North Carolina. In addition, the school shall maintain at least one testing center or meeting place within each of the eight State Board of Education districts where the participating students reside, to allow educators and administrators from the school to meet students and parents. When utilizing the testing center or meeting place for test administration, the school is permitted to do the following: "a. Administer tests to multiple grade levels at the same time and location. "b. Contract with a test administrator who is not employed by the board of directors of the school and meets the following criteria: "1. Holds a valid, North Carolina educator license. "2. Passes a criminal history check as defined in G.S. 115C-332(a)(1) performed by the school. "3. Is trained on test administration in accordance with the North Carolina Testing Program. "(2) If the school contracts with a third party for the provision of administrative staff, such staff fulfilling the equivalent positions of superintendent, principal, or business officer shall be residents of North Carolina. "(3) All teaching staff shall carry the appropriate State certification to instruct any course and shall receive professional development in virtual instruction pursuant to the school's application to the State Board of Education to participate in the pilot program within 30 days of the employee's date of hire. At least eighty percent (80%) of the teaching staff shall reside within North Carolina. "(4) The school shall have a withdrawal rate below twenty-five percent (25%). A student who meets any of the following criteria shall not be counted in measuring the school's withdrawal rate: "a. A student enrolled in a school with the intent expressed prior to enrollment of only being enrolled for a finite period of time within the school year. The school shall keep a written record of a student's stated intent for finite enrollment. "b. A student who is withdrawn from the school pursuant to subdivision (3) of subsection (b) of this section. "c. A student who is no longer qualified under the laws of this State for admission to a public school in North Carolina, including due to the student relocating to another state. "d. A student who (i) withdraws from the school for a family, personal, or medical reason and (ii) notifies the school of the reason for withdrawal. The school shall keep a written record of a student's stated reason for withdrawal under this sub-subdivision. "e. A student who withdraws from the school within the first 30 days following the date of the student's enrollment. "(4a) A count of school attendance shall be taken at least once during each semester for funding purposes. "(5) The school shall ensure that each student is assigned a learning coach. The learning coach shall provide (i) daily support and supervision of students, (ii) ensure student participation in online lessons, and (iii) coordinate teacher-led instructional sessions and State assessments. "(d) Notwithstanding G.S. 115C-218.1 and G.S. 115C-218.5 , a participating virtual charter school that is successful in meeting the requirements of this section and the applicable requirements of Article 14A of Chapter 115C of the General Statutes during the period of the pilot program shall be eligible to be approved by the State Board of Education, at its discretion, without additional application requirements. "(e) The State Board of Education shall provide State funding to a virtual charter school participating in the pilot program as provided in G.S. 115C-218.105(a) and G.S. 115C-218.105(b) . The amount allocated pursuant to G.S. 115C-218.105(a) (1) shall not, however, include the allocation for low-wealth counties supplemental funding and the allocation for small county supplemental funding. Virtual charter schools participating in the pilot program shall also be subject to the requirements in G.S. 115C-218.105(c) through G.S. 115C-218.105(e) . The amount of local funds provided to participating schools pursuant to G.S. 115C-218.105(c) shall be the lesser of seven hundred ninety dollars ($790.00) per pupil or the amount computed in accordance with G.S. 115C-218.105(c). "(f) A participating virtual charter school that does not comply with the provisions of this section may result in deferment or termination of enrollment expansion, or termination of a pilot. Schools are subject to presentation of data to the State Board of Education at the call of the Chair of the State Board with a minimum of 21 days' notice. "(g) The State Board shall report on the initial implementation of the pilot program to the Joint Legislative Education Oversight Committee by November 15, 2016, and on findings from (i) five years of operation of the pilot program by November 15, 2020, and (ii) seven years of operation of the pilot program by November 15, 2022. At a minimum, the reports shall include the following: "(1) The number of students who have enrolled in courses offered by the schools. "(2) The number and type of courses offered by the schools. "(3) The withdrawal rate of students after enrollment. "(4) Student performance and accountability data. "(5) Information on the implementation, administration, and funding for the pilot program. "(6) Recommendations on the modification, continuation, and potential expansion of the program." Editor's Note. - This section is former G.S. 115C-238.29H. It has been renumbered as this section at the direction of the Revisor of Statutes, pursuant to Session Laws 2014-101, s. 7. Session Laws 2002-159, s. 91.1, provides: "Nothing in the General Statutes or any local act entitles any charter school, prior to July 1, 2003, to recover retroactively any funds from penalties, fines, and forfeitures or supplemental school taxes." Session Laws 2010-31, s. 7.17(b), provides: "Any local school administrative unit (i) that did not fully comply with the provisions of G.S. 115C-238.29H(b) prior to the effective date of this section and (ii) that is subject to a judgment, court order, or binding settlement agreement arising from that noncompliance may make payments required thereunder over a period not to exceed three years. " Session Laws 2013-355, s. 5, repealed Session Laws 2010-31, s. 7.17(b), effective July 25, 2013. Session Laws 2010-31, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2010'. " Session Laws 2010-31, s. 32.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2010-2011 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2010-2011 fiscal year." Session Laws 2010-31, s. 32.6, is a severability clause. Session Laws 2010-123, s. 3.2, provides: "Nothing in Section 7.17 of S.L. 2010-31 shall be construed to invalidate any budget resolution or budget amendment approved by a local board of education regarding the appropriation or transfer of revenue to any other fund that was approved for use by the North Carolina Department of Public Instruction and the Local Government Commission." Session Laws 2013-355, s. 8, provides in part: "G.S. 115C 238.29H(d), as enacted by this act, applies to proceedings commenced on or after the effective date of this act [July 25, 2013]. Nothing in this act shall be construed to affect pending litigation." Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'" Session Laws 2014-100, s. 38.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2014-2015 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2014-2015 fiscal year." Session Laws 2014-100, s. 38.7, is a severability clause. Session Laws 2014-101, s. 8, provides, in part: "Except as otherwise provided, this act is effective when it becomes law [August 6, 2014] and applies beginning with the 2014-2015 school year." Session Laws 2016-79, s. 4, made the amendments to this section by Session Laws 2016-79, s. 1.6, applicable beginning with the 2016-2017 school year. Session Laws 2016-94, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2016.'" Session Laws 2016-94, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2016-2017 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2016-2017 fiscal year." Session Laws 2016-94, s. 39.7, is a severability clause. Session Laws 2018-5, s. 38.8(i), made subsection (f) of this section, as added by Session Laws 2018-5, s. 38.8(d), effective July 1, 2018, and applicable to revenues derived from taxes levied on or after that date. Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2018-2019 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2018-2019 fiscal year." Session Laws 2018-5, s. 39.7, is a severability clause. Session Laws 2021-79, s. 2, made the amendments to this section by Session Laws 2021-79, s. 1, effective July 8, 2021, and applicable beginning with the 2021-2022 school year. Effect of Amendments. - Session Laws 2013-355, s. 1(h), effective July 25, 2013, substituted "facilities, equipment, or operations " for "facilities or equipment " in the first sentence of subsection (a1); in subsection (b), substituted "pupil share of the local current expense fund of " for "pupil local current expense appropriation to " in the first sentence, and added the second and third sentences; and added subsections (c) and (d). For applicability, see Editor's note. Session Laws 2014-101, ss. 5.2, 5.6, effective August 6, 2014, added subdivision (c)(4); and substituted "one year" for "three years" in the final sentence of subsection (d). See Editor's note for applicability. Session Laws 2016-79, s. 1.6, effective June 30, 2016, substituted "G.S. 115C-218.7 and G.S. 115C-218.8 " for "G.S. 115C-218.5(d)" following "In accordance with" in subdivision (a)(3); and added the last paragraph in subsection (d). See editor's note for applicability. Session Laws 2017-173, s. 7, effective July 21, 2017, in subsection (b), transferred the former last sentence to the current third sentence. Session Laws 2018-5, s. 38.8(d), added subsection (f). For effective date and applicability, see editor's note. Session Laws 2021-79, s. 1, effective July 8, 2021, rewrote subsection (c).