Identical to S 112, filed 2/17/25.
Allows an eligible district (district), before the 2026-27 school year, to submit a Financial and Hiring Flexibility Plan (FHFP) to the State Board of Education (State Board), to allow the local board of education (local board) to decide certain matters related to the operation of the schools under the local board's control within the District, including the use of State funds, as provided in this act. Sets out the purpose of operating a District under an FHFP. Defines eligible district as a local school administrative unit that meets both of the following: (1) the local school administrative unit has the authority to levy and lay special taxes for the payment of bonds issued by the governing body of the unit and (2) the local school administrative unit had an allotted average daily membership of at least 5,000 for the 2023-24 school year. Requires local boards who want to operate under an FHFP to submit an FHFP that meets at least the specified components to the State Board, including a resolution adopted by the local board to implement the FHFP, by January 15, 2026, to begin operation of the plan with the 2026-27 school year. The specified FHFP components include a description of how the flexibility allowed under the FHFP will aid in meeting the following goals by the 2030-31 school year: ensuring that 100% of all students have completed a career development plan by the beginning of 12th grade, increase teacher retention to 90% retention rate, and increase the growth rate of any subgroups of students below the average growth rate in the 2024-25 school year to above the average overall growth rate for the State. Requires the State Board to approve an FHFP that meets the act's requirements by March 15, 2026, to begin implementation by July 1, 2026.
Requires the State Board to review the operation and student performance of a District operating under an FHFP following the end of the 2030-31 school year, and at least every three years thereafter, to ensure that the District is meeting expected academic goals and complying with all financial and observance requirements. Sets out the grounds under which the State Board must terminate an FHFP. Sets out provisions that apply in the event of an early termination. Provides that if an FHFP is terminated, the State Board may grant the District a waiver to the licensure requirements annually, for up to three years, to facilitate the transition to employment of fully licensed teachers. 
Allows, beginning July 1, 2026, for as long as a District is operating under an FHFP, up to 50% of the teachers in each school in the District to be employed as teachers despite not holding teacher licenses if they meet the requirements described below. Requires all teachers who are teaching core subject areas (mathematics, science, social studies, and language arts) to be college graduates. Requires teachers who are not licensed as a teacher by the State to complete preservice training in all of the following areas before beginning instruction: (1) the identification and education of children with disabilities, (2) positive management of student behavior, (3) effective communication for defusing and de-escalating disruptive or dangerous behavior, and (4) safe and appropriate use of seclusion and restraint.
Deems all schools in a District operating under an FHFP as having been continuously operating under a modified calendar since the 2003-04 school year for purposes of GS 115C-84.2(d) (opening and closing dates of public schools).
 
Requires the Department of Public Instruction (DPI), beginning with the 2026-27 fiscal year, to calculate the amount of State funds to be allocated to a District operating under an FHFP on the same basis as other local school administrative units and distribute those funds to the unit. Requires the deposit of money in the State treasury to the credit of a District operating under an approved FHFP to be made as necessary for the operation of the District. Allows withholding money to be distributed to a District if any report required to be filed with State school authorities is more than 30 days overdue. Allows for the release of money in the State Public School Fund and State bonds to be released only on warrants drawn on the State Treasurer, signed by a local official as required by the State Board. Sets out provisions governing withholdings for retirement contributions.
 
Requires a District operating under a FHFP to report to the Superintendent annually beginning July 15, 2027, on five specified topics. Also requires the Superintendent to report to the specified NCGA committee by November 15, 2027, and annually thereafter that a District operates an FHFP, on five specified topics.