Title: DRH30045-LE-90A (2/26)
Category: Bill Draft 2002

GENERAL ASSEMBLY OF NORTH CAROLINA	SESSION 2003

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2003
H	D
HOUSE DRH30045-LE-90A  (2/26)

Short Title:	Children With Disabilities/Federal Law.-AB | (Public)
Sponsors: | Representatives Warren, Bell, and Preston (Primary Sponsors).
Referred to: |

A BILL TO BE ENTITLED
AN ACT to Align state law with federal law on students with disabilities.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 115C‑106(b) reads as rewritten:
"(b)	The policy of the State is to provide a free appropriate publicly supported education to every child with disabilities. The purpose of this Article is to (i) provide for a system of special educational opportunities for all children requiring special education, hereinafter called children with disabilities; (ii) provide a system for identifying and evaluating the educational needs of all children with disabilities; (iii) require evaluation of the needs of such children and the adequacy of special education programs before placing children in the programs; (iv) require periodic evaluation of the benefits of the programs to the children and of the nature of the children's needs after placement; (v) prevent denials of equal educational opportunity on the basis of physical, emotional, or mental handicap; (vi) assure that the rights of children with disabilities and their parents or guardians are protected; (vii) ensure that there be no inadequacies, inequities, and discrimination with respect to children with disabilities; and (viii) bring State law, regulations, and practice into conformity with relevant federal law."
SECTION 2.  G.S. 115C‑107 reads as rewritten:
"§ 115C‑107.  Children can learn.
The General Assembly finds that all children with disabilities are capable of benefiting from access to the general curriculum and are best educated in the least restrictive environment. Accordingly, the State has a duty to provide them with a free appropriate public education."
SECTION 3.(a)  G.S. 115C‑108 is repealed.
SECTION 3.(b)  Part 1 of Article 9 of Chapter 115C of the General Statutes is amended by adding a new section to read:
"§ 115C‑108.1.  Definitions.
As used in this section:
(1)	The term "parent" means a parent, a guardian, a person acting in the place of the parent, such as a grandparent or stepparent with whom the student lives, a person who is legally responsible for the welfare of the student, or a surrogate parent who has been appointed in accordance with Section 1513.
The term does not include the State if the child is a ward of the State. A foster parent may act as a parent if:
a.	The natural parents' authority to make educational decisions on the child's behalf has been terminated under State law; and
b.	The foster parent:
1.	Has a long-term parental relationship with the child;
2.	Is willing to make educational decisions; and
3.	Has no interest that would conflict with the interest of the child.
(2)	"Related services" means transportation, and such developmental, corrective, and other supportive services (including speech pathology and audiology; orientation and mobility services; psychological services; physical and occupational therapy; recreation, including therapeutic recreation; social work services; medical and counseling services, including rehabilitation counseling) as may be required to assist a child with a disability to benefit from special education, and includes the early identification and assessment of disabling conditions in children. Medical services shall be for diagnostic and evaluation purposes only. A student who does not require special education is not eligible for a related service funded under this program.
a.	"Audiology" includes:
1.	Identification of children with hearing loss and middle ear dysfunction;
2.	Determination of the range, nature, and degree of hearing loss, including referral for medical or other professional attention for the habilitation of hearing;
3.	Provision of habilitative activities, such as language habilitation, auditory training, speech reading (lip-reading), hearing aid orientation, and speech conservation;
4.	Creation and administration of programs for prevention of hearing loss;
5.	Counseling and guidance of pupils, parents, and teachers regarding hearing loss; and
6.	Determination of the child's need for group and individual amplification, selecting and fitting an appropriate aid, and evaluating the effectiveness of amplification.
b.	"Counseling services" means services provided by licensed social workers, psychologists, guidance counselors, or other qualified personnel.
c.	"Early identification" means the implementation of a formal plan for identifying a disability as early as possible in a child's life.
d.	"Medical services" means services provided by a licensed physician or other appropriately trained and/or supervised health provider to determine a child's medically related disability which results in the child's need for special education and related services.
e.	"Occupational therapy" is a service provided by a licensed occupational therapist to address the functional needs of an individual as they relate to sensory, motor, postural, and emotional development, adaptive behavior and play, and the performance of self-help skills. These services are designed to develop, improve, restore, or maintain the individual's functional ability to perform tasks in educational settings. In an educational setting, occupational therapy services are provided to enable an identified student to benefit from special education in the least restrictive environment. Occupational therapy services may include:
1.	Identification, screening, evaluation, intervention, and consultation;
2.	Adaptation of environments, both human and physical, and selection, design, and fabrication of assistive and orthotic devices and other assistive technology to facilitate development and promote the acquisition of functional skills so that the child can perform tasks in the least restrictive environment;
3.	Prevention or minimization of the impact of initial or further impairment, delay in development, or loss of functional ability; and
4.	Provision of in-service education and information to families, school personnel, and community and State agencies to assist with problem solving, program planning, and priority setting.
f.	"Orientation and Mobility" means services provided by qualified personnel to enable students who are blind or visually impaired to travel safely and independently and to remain oriented to a wide variety of both familiar and unfamiliar indoor and outdoor environments. For young children, orientation and mobility is teaching concept development as it relates to body movement, spatial awareness, knowledge of the environment, attitude toward independence, and travel skills.
g.	"Parent counseling and training" means assisting parents in understanding the special needs of their child and providing parents with information about child development. For preschool children with disabilities, parent counseling and training includes family services which would assist parents in securing support that affect the child's development.
h.	"Physical therapy" is a service provided by a licensed physical therapist and is concerned with prevention of physical disabilities and with providing rehabilitation services to individuals with disabilities resulting from prenatal causes, birth trauma, illness, or injury. These services are designed to develop or restore neuromuscular and/or sensorimotor functions, control postural deviations to minimize disabilities, and to develop and to maintain maximal performance levels within the individual's physical capabilities. In an educational setting, physical therapy services are provided to enable an identified student to benefit from special education in the least restrictive environment. Physical therapy services may include:
1.	Development and maintenance of an individual student's physical potential for independence and safety in educationally related activities;
2.	Modification and adaptation of the student's physical environment so that the student may benefit from special education;
3.	Provision of in-service training for school personnel;
4.	Communication with State and community agencies;
5.	Education for parents or guardians; and
6.	Involvement in total program planning for exceptional children.
i.	"Psychological services" include:
1.	Administering psychological and educational tests, and other procedures such as observations and interviews, in order to determine a student's strengths and educational, social, behavioral and/or developmental needs. For preschool children, psychological assessment may include administering psychological tests and/or criterion-referenced, curriculum-based and other educational tests, as well as conducting other assessment procedures such as observations, interviews, structured interactions, and play assessments as deemed appropriate by the psychologist;
2.	Interpreting assessment results;
3.	Obtaining, integrating, and interpreting information about a child's behavior and environmental conditions related to learning and development;
4.	Consulting with parents, teachers, and other school personnel in planning programs and services to meet the identified needs of children, including, but not limited to, placement, effective learning/teaching strategies, and personal and social skills;
5.	Planning and managing a program of psychological services including psychological counseling for children and parents;
6.	Referring children and families to community agencies and services when appropriate;
7.	Screening and early identification of children with disabilities; 
8.	Developing strategies for the prevention of learning and behavior problems; and
9.	Assisting in developing positive behavioral strategies.
j.	"Recreation" includes:
1.	Assessment of leisure functions;
2.	Therapeutic recreation services;
3.	Recreation programs in schools and community agencies; and
4.	Leisure education.
k.	"School health services" are services provided by a qualified school nurse or other qualified person.
l.	"Social work services in schools" include:
1.	Preparing a social or developmental history for a child with a disability;
2.	Group and individual counseling with the child and family;
3.	Working with those problems in a child's living situation (home, school, and community) that affect the child's adjustment in school; 
4.	Mobilizing school and community resources to enable the child to receive benefit from his or her educational program; and
5.	Assisting in developing positive behavioral intervention strategies.
m.	"Speech-language pathology" includes:
1.	Identification of children with speech-language disorders;
2.	Diagnosis and appraisal of specific speech-language disorders;
3.	Referral for medical or other professional attention necessary for the habilitation of speech-language disorders;
4.	Provision of speech-language services for the habilitation or prevention of communicative disorders; and
5.	Counseling and guidance of parents, children, and teachers regarding speech-language disorders.
n.	"Transportation" includes:
1.	Travel to and from school and between schools;
2.	Travel in and around school buildings; and
3.	Specialized equipment (such as special or adaptive buses, lifts, and ramps) if required to provide special transportation for a child with a disability.
(3)	Screening consists of first-step assessment procedures aimed at selecting students who may have special needs. Two separate components of screening may be identified:
a.	Mass screening or sweep screening is the selection of children who may need services such as special education, related services, special health services, or sensory aids in order to achieve full learning potential. These individuals will need follow-up to identify specific academic and behavioral or developmental needs by additional evaluation processes. Mass screening or sweep screening may be accomplished through the administration of such programs as:
1.	School-wide achievement testing;
2.	School-wide health and sensory testing;
3.	Early childhood and kindergarten testing; and
4.	Class-wide surveys and observations.
For preschool children, screening also may be carried out by the public health departments, developmental evaluation centers, mental health centers, and developmental programs (e.g., Head Start).
b.	Individual screening is the identification of children whose specific academic, behavioral, or developmental problem areas may need further in-depth evaluation. Individual screening should more accurately select those students who need further consideration for special school services, which may include special education and related services."
SECTION 4.  G.S. 115C‑109 reads as rewritten:
"§ 115C‑109.  Definition of children with disabilities.
The term "children with  disabilities" includes, without limitation, all children who, because of permanent or temporary mental, physical, or emotional disabilities, need special education, are unable to have all their educational needs met in a regular class without special education and related services, or are unable to be adequately educated in the public schools. It includes those who are autistic, behaviorally-emotionally disabled, deaf-blind, hearing impaired, mentally disabled, multihandicapped, orthopedically impaired, other health impaired, pregnant, specific-learning disabled, speech-language impaired, traumatic brain injured and visually impaired. The term "preschool children with disabilities" includes, without limitation, all 3- and 4-year-old children and those 5-year-old children who are ineligible for kindergarten and who because of permanent or temporary cognitive, communication, social/emotional and/or adaptive disabilities are unable to have all of their developmental needs met in a natural environment without special education and related services. Preschool children with disabilities become eligible for services upon reaching their third birthday."
SECTION 5.  G.S. 115C‑110 reads as rewritten:
"§ 115C‑110.  Services mandatory; single‑agency responsibility; State and local plans; census and registration.
(a)	The Board shall cause to be provided by all local school administrative units and by all other State and local governmental agencies providing special education services or having children with disabilities in their care, custody, management, jurisdiction, control, or programs, special education and related services appropriate to all children with disabilities. In this regard, all local school administrative units and all other State and local governmental agencies providing special education and related services shall explore available local resources and determine whether the services are currently being offered by an existing public or private agency.
When a specified special education or related service is being offered by a local public or private resource, any unit or agency described above shall negotiate for the purchase of that service or shall present full consideration of alternatives and its recommendations to the Board. In this regard, a new or additional program for special education or related services shall be developed with the approval of the Board only when that service is not being provided by existing public or private resources or the service cannot be purchased from existing providers. Further, the Board shall support and encourage joint and collaborative special education planning and programming at local levels to include local administrative units and the programs and agencies of the Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention.
The jurisdiction of the Board with respect to the design and content of special education programs or related services for children with disabilities extends to and over the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction.
All provisions of this Article that are specifically applicable to local school administrative units also are applicable to the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction and their divisions and agencies; all duties, responsibilities, rights and privileges specifically imposed on or granted to local school administrative units by this Article also are imposed on or granted to the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction and their divisions and agencies. However, with respect to children with disabilities who are residents or patients of any state‑operated or state‑supported residential treatment facility, including without limitation, a school for the deaf, school for the blind, mental hospital or center, mental retardation center, or in a facility operated by the Department of Juvenile Justice and Delinquency Prevention, the Department of Correction or any of its divisions and agencies, the Board shall have the power to contract with the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, and the Department of Correction for the provision of special education and related services and the power to review, revise and approve any plans for special education and related services to those residents.
The Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention shall submit to the Board their plans for the education of children with disabilities in their care, custody, or control. The Board shall have general supervision and shall set standards, by rule or regulation, for the programs of special education to be administered by it, by local educational agencies, and by the Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention. The Board may grant specific exemptions for programs administered by the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, or the Department of Correction when compliance by them with the Board's standards would, in the Board's judgment, impose undue hardship on this department and when other procedural due process requirements, substantially equivalent to those of G.S. 115C‑116, are assured in programs of special education and related services furnished to children with disabilities served by this department. Further, the Board shall recognize that inpatient and residential special education programs within the Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention may require more program resources than those necessary for optimal operation of these programs in local school administrative units.
Every State and local department, division, unit or agency covered by this section is hereinafter referred to as a "local educational agency" unless the text of this Article otherwise provides.
(b)	The Board shall make and keep current a plan for the implementation of the policy set forth in G.S. 115C‑106(b). The plan shall include:
(1)	A census of the children with disabilities in the State, as required by subsection (j) of this section;
(2)	A procedure for diagnosis and evaluation of each child;
(3)	An inventory of the personnel and facilities available to provide special education for these children;
(4)	An analysis of the present distribution of responsibility for special education between State and local educational agencies, together with recommendations for any necessary or desirable changes in the distribution of responsibilities;
(5)	Standards for the education of children with disabilities;
(6)	Programs and procedures for the development and implementation of a comprehensive system of personnel development; and
(7)	Any additional matters, including recommendations for amendment of laws, changes in administrative regulations, rules and practices and patterns of special organization, and changes in levels and patterns of education financial support.
	(d)	The Board shall adopt rules covering:
(1)	The qualifications of and standards for certification of teachers, teacher assistants, speech clinicians, school psychologists, and others involved in the education and training of children with disabilities;
(2)	Minimum standards for the individualized educational program for all children with disabilities; and
(3)	Any other rules as may be necessary or appropriate for carrying out the purposes of this Article. Representatives from the Departments of Health and Human Services, Correction, and Juvenile Justice and Delinquency Prevention shall be involved in the development of the standards outlined under this subsection.
					(g)	By rule, the Board shall prescribe due dates not later than October 15 of each year, and all other necessary or appropriate matters relating to these annual and supplemental and additional reports.
			
(i)	Each local educational agency shall provide free appropriate special education and related services in accordance with the provisions of this Article for all children with disabilities who are residents of, or whose parents or guardians are residents of, the agency's district, beginning with children aged five. No matriculation or tuition fees or other fees or charges shall be required or asked of children with disabilities or their parents or guardians except those fees or charges as are required uniformly of all public school pupils. The provision of free appropriate special education within the facilities of the Department of Health and Human Services and the Department of Juvenile Justice and Delinquency Prevention shall not prevent that department from charging for other services or treatment.
(j)	The Board shall require an annual census of children with disabilities, subdivided for "identified" and "suspected" children with disabilities, to be taken in each school year. Suspected children are those in the formal process of being identified, evaluated or diagnosed as children with disabilities. The census shall be conducted annually and shall be completed not later than October 15, and shall be submitted to the Governor and General Assembly and be made available to the public no later than January 15 annually.
In taking the census, the Board shall require the cooperation, participation, and assistance of all local educational agencies and all other State and local governmental departments and agencies providing or required to provide special education services to children with disabilities, and those departments and agencies shall cooperate and participate with and assist the Board in conducting the census.
The census shall include the number of children identified and suspected with disabilities, their age, the nature of their disability, their county or city of residence, their local school administrative unit residence, whether they are being provided special educational or related services and if so by what department or agency, whether they are not being provided special education or related services, the identity of each department or agency having children with disabilities in its care, custody, management, jurisdiction, control, or programs, the number of children with disabilities being served by each department or agency, and such other information or data as the Board shall require. The census shall be of children with disabilities between the ages of three and 21, inclusive.
(k)	The Department shall monitor the effectiveness of individualized education programs in meeting the educational needs of all children with disabilities.
(l)	The Board shall provide for procedures assuring that in carrying out the requirements of this Article procedures are established for consultation with individuals involved in or concerned with the education of children with disabilities, including parents or guardians of such children, and there are public hearings, adequate notice of such hearings, and an opportunity for comment available to the general public prior to the adoption of the policies, procedures, and rules or regulations required by this Article.
(m)	Children with disabilities shall be educated in the least restrictive appropriate setting, as defined by the State Board of Education.
(n)	(Effective July 1, 2003) Each interpreter or transliterator employed by a local educational agency, to provide services to hearing‑impaired students, must annually complete 15 hours of job‑related training that has been approved by the local educational agency."
SECTION 6.  G.S. 115C‑111 reads as rewritten:
"§ 115C‑111.  Free appropriate education for all children with disabilities.
No child with disabilities between the ages specified by G.S. 115C‑109 shall be denied a free appropriate public education or be prevented from attending the public schools of the local educational agency in which he or his parents or legal guardian resides or from which he receives services or from attending any other public program of free appropriate public education because he is a child with disabilities. If it appears that a child should receive a program of free appropriate public education in a program operated by or under the supervision of the Department of Health and Human Services or the Department of Juvenile Justice and Delinquency Prevention, the local educational agency shall confer with the appropriate Department of Health and Human Services or Department of Juvenile Justice and Delinquency Prevention staff for their participation and determination of the appropriateness of placement in said program and development of the child's individualized education program. The individualized education program may then be challenged under the due process provisions of G.S. 115C‑116. Every child with disabilities shall be entitled to attend these nonresidential schools or programs and receive from them free appropriate public education."
SECTION 8.  G.S. 115C‑113 reads as rewritten:
"§ 115C‑113.  Diagnosis and evaluation; individualized education program.
(a)	Before taking any action described in subsection (b), below, each local educational agency shall conduct evaluations and determine eligibility consistent with federal regulations. The local educational agency shall use the diagnosis and evaluation to determine if the child has disabilities, diagnose and evaluate those needs, propose special education programs to meet those needs, and provide or arrange to provide such programs. A multi‑disciplinary diagnosis and evaluation is one which includes, without limitation, medical (if necessary), psychological (if necessary) and educational assessments and recommendations; such an evaluation may include any other assessments as the Board may, by rule or regulation, require.
All testing and evaluation materials and procedures utilized for the purposes of evaluation and placement of children with disabilities will be selected and administered so as not to be racially or culturally discriminatory. Such materials or procedures shall be provided and administered in the child's native language or mode of communication, unless it clearly is not feasible to do so, and no single procedure shall be the sole criterion for determining an appropriate educational program for a child.
(b)	An initial multi‑disciplinary diagnosis and evaluation based on rules developed by the Board shall be made before any such child is placed in a special education program, removed from such a program and placed in a regular school program, transferred from one type of special education program to another, or removed from a school program for placement in a nonschool program.
(c)	Referral of any child shall be in writing, signed by the person requesting diagnosis and evaluation, setting forth the reasons for the request; it shall be sent or delivered to one of the following: the child's teacher, the principal of the school to which the child is, has been or will be assigned, or the superintendent of the affected local educational agency or his designee. The local educational agency shall send a written notice to the parent or guardian describing the evaluation procedure to be followed and requesting consent for the evaluation. If the parents or guardian consent, the diagnosis and evaluation may be undertaken; if they do not, the local educational agency may obtain a due process hearing pursuant to G.S. 115C‑116 on the failure of the parent or guardian to consent.
The local educational agency shall provide or cause to be provided, as soon as possible after receiving consent for evaluation, a diagnosis and evaluation appropriate to the needs of the child unless the parents or guardian have objected to such evaluation. If at the conclusion of the evaluation, the child is determined to be a child with disabilities, the local educational agency shall within 30 calendar days convene an individualized education program committee. The purpose of the meeting shall be to propose the special education and related services for the child. An interpretation of the multi‑disciplinary diagnosis and evaluation will be made to the parent or guardian during the meeting. The proposal shall set forth the specific benefits expected from such a program, a method for monitoring the benefits, and a statement regarding conditions which will be considered indicative of the child's readiness for participation in regular classes.
After an initial referral is made, the provision of special education and related services shall be implemented within 90 calendar days to eligible students, unless the parents or guardian refuse to consent to evaluation or placement or the parent or local educational agency requests a due process hearing.
Within 12 months after placement in a special education program, and at least annually thereafter, those people responsible for developing the child's individualized education program shall review the child's progress and, on the basis of previously stated expected benefits, decide whether to continue or discontinue the placement or program. If the review indicates that the placement or program does not benefit the child, the appropriate reassignment or change in the prescribed program shall be recommended to the parents or guardian.
The local educational agency shall keep a complete written record of all diagnostic and evaluation procedures attempted, their results, the conclusions reached, and the proposals made.
(d)	The local educational agency shall furnish the results, findings, and proposals, as described in the individualized education program based on the diagnosis and evaluation to the parents or guardian in writing in the parents' or guardian's native language or by their dominant mode of communication, prior to the parent or guardian giving consent for initial placement in special education and related services. Prior notice will be given to the parents or guardian by the local educational agency before any change in placement.
A reevaluation must be completed at least every three years to determine the appropriateness of the child's continuing to receive special education and related services.
(e)	Each local educational agency shall make and keep current a list of all children evaluated and diagnosed pursuant to this section who are found to have disabilities and of all children who are receiving home, hospital, institutional or other special education services, including those being educated within the regular classroom setting or in other special education programs.
(f)	Each local educational agency shall prepare individualized educational programs for all children found to be children with disabilities. The individualized educational program shall be developed in conformity with federal law and the implementing regulations issued by the United States Department of Education and shall be implemented in conformity with timeliness set by that Department. The term "individualized educational program" means a written statement for each such child developed in any meeting by a representative of the local educational agency who shall be qualified to provide, or supervise the provision of, specially designed instruction to meet the unique needs of such children, the teacher, the parents or guardian of such child, and, whenever appropriate, such child, which statement shall be based on State Board procedures and policy. Each local educational agency shall establish, or revise, whichever is appropriate, the individualized educational program of each child with disabilities each school year and will then review and, if appropriate revise, its provisions periodically, but not less than annually. In the facilities and programs of the Department of Health and Human Services and the Department of Juvenile Justice and Delinquency Prevention, the individualized educational program shall be planned in collaboration with those other individuals responsible for the design of the total treatment or habilitation plan or both; the resulting educational, treatment, and habilitation plans shall be coordinated, integrated, and internally consistent.
(g)	Repealed by Session Laws 1996, Second Extra Session, c. 18, s. 18.24(e).
	"
SECTION 9.  G.S. 115C‑113.1 reads as rewritten:
"§ 115C‑113.1.  Surrogate parents.
In the case of a child whose parent or guardian is unknown, whose whereabouts cannot be determined after reasonable investigation, or who is a ward of the State, the local educational agency shall appoint a surrogate parent for the child. The surrogate parent shall be appointed by the local superintendent from a list of persons who are appropriately trained, but in no case shall the person appointed be a person ineligible under applicable law. The Superintendent shall ensure that local educational agencies appoint a surrogate parent for every child in need of a surrogate parent."
SECTION 10.  G.S. 115C‑114(a) reads as rewritten:
"(a)	No local educational agency may release to any persons other than the eligible student, his parents or guardian or any surrogate parent any records, data or information on any child with disabilities except (i) as permitted by the prior written consent of the student, his parents or guardian or surrogate parent, (ii) as required or permitted by federal law, (iii) school officials within the local education agency who have legitimate educational interest, (iv) school officials of other local educational agencies in which the student intends to enroll, or (v) certain authorized representatives of the State and federal government who are determining eligibility of the child for aid, as provided under Public Law 93‑380 or other federal law."
SECTION 11.  G.S. 115C‑115(3) reads as rewritten:
"(3)	If the placement of the child in a private school, out‑of‑state school or a school in another local educational agency determined by the Superintendent of Public Instruction to be the most cost‑effective way to provide an appropriate education to that child and the child is not currently being educated by the Department of Health and Human Services, the Department of Juvenile Justice and Delinquency Prevention, or the Department of Correction, the State will bear a portion of the cost of the placement of the child. The local school administrative unit shall pay an amount equal to what it receives per pupil from the State Public School Fund and from other State and federal funds for children with disabilities for that child. The State shall pay the full cost of any remainder up to a maximum of fifty percent (50%) of the total cost."
SECTION 12.  G.S. 115C‑116 reads as rewritten:
"§ 115C‑116.  Notice of decisions; mediation, administrative review, and judicial review of disagreements.
(a)	Prior Notice. – The parent, guardian, or surrogate parent of a child shall be notified promptly when the local educational agency proposes to initiate or change, or refuses to initiate or change, the identification, evaluation, or educational placement of a child as a child with disabilities. The written notice shall contain a full explanation of all the procedural safeguards available to the parent, guardian, or surrogate parent including the right to review the proposed decision, and a statement offering the parent, guardian, or surrogate parent the opportunity for mediation. The local educational agency shall document that all required notices have been sent to and received by parents, guardians, or surrogate parents.
(b)	Mediation. – It is the policy of this State to encourage local educational agencies and parents, guardians, surrogate parents, custodians, and eligible students to seek informal resolution of disputes or disagreements regarding the identification of children with disabilities and the provision of special education and related services before filing a request for a formal administrative review of the matter. To that end, the following provisions apply to the mediation of these disputes:
(1)	Purpose. – The purpose of mediation is to clarify the concerns of the parents and to resolve disputes.
(2)	Definitions. – As used in this subsection, the following terms have the following meanings:
a.	"Dispute" means a disagreement between the parties that is subject to review under subsection (c) of this section.
b.	"Mediation" means an informal process conducted by a mediator with the objective of helping parties voluntarily settle their dispute.
c.	"Mediator" means a neutral person who acts to encourage and facilitate a resolution of a dispute.
d.	"Parents" means parents, guardians, surrogate parents, custodians, and eligible students.
e.	"Parties" means the local educational agency and the parents.
(3)	Nonadversarial. – The mediation shall be informal and nonadversarial as provided in G.S. 150B‑22.
(4)	Rules of procedure. – The mediator is encouraged to follow applicable procedures provided in G.S. 7A‑38.1, G.S. 7A‑38.2, and applicable rules adopted by the Supreme Court under G.S. 7A‑38.1. The mediator may establish other procedures to facilitate an informal resolution of the dispute. The mediator shall not render a decision or judgment as to the merits of the dispute.
(5)	Request for mediation. – Before a request for formal administrative review is filed, mediation shall commence upon the request of either party, so long as the other party consents.
(6)	Selection of mediator. – The parties shall agree to the selection of the mediator. The Exceptional Children Division of the Department of Public Instruction shall maintain a list of mediators who are certified or trained in resolving disputes under this subsection.
(7)	Notice of right to mediation. – The local educational agency shall notify parents of their right to request mediation under this subsection.
(8)	Time periods tolled. – Time periods related to the filing of a formal administrative review or the taking of any other action with respect to the dispute, including any applicable statutes of limitations, are tolled upon the filing of a request for mediation under this subsection until the mediation is completed or the mediator declares an impasse.
(9)	Good cause for continuance. – A good faith effort by both parties to mediate the dispute is presumed to constitute good cause for a continuance so long as the administrative law judge does not find that the time delay for mediation would likely result in irreparable harm to one of the parties or to the child.
(10)	Inadmissibility of negotiations. – Evidence of statements made and conduct occurring in a mediation shall not be subject to discovery and shall be inadmissible in any proceeding in the action or other actions on the same claim. However, no evidence otherwise discoverable shall be inadmissible merely because it is presented or discussed in a mediation. Mediators shall not be compelled in any civil proceeding to testify or produce evidence concerning statements made and conduct occurring in a mediation.
(11)	Mediator's fees. – If mediation is requested before a request for formal administrative review is filed, the local educational agency shall pay the mediator's fees for one mediation session. If resolution is not reached in that session, the parties must agree to continue the mediation. The local educational agency shall pay any mediator fees for subsequent mediation sessions unless the parties agree otherwise.
(12)	Mediated settlement conference after a request for administrative review. – In addition to mediation as provided by this subsection, the parties may voluntarily participate in a mediated settlement conference. The mediated settlement conference shall not deny or delay a timely administrative review.
(13)	Promotion of other settlement procedures. – The parties may agree to use other dispute resolution methods or to use mediation in other circumstances, including after a request for formal administrative review is filed, to the extent permitted under State and federal law.
(c)	Right of Review. – The parent, guardian, or surrogate parent may obtain review of proposed decisions on the following grounds:
(1)	The child has not been identified or has been incorrectly identified as a child with disabilities;
(2)	The child's individualized education plan is not appropriate to meet his needs;
(3)	The child's individualized education plan is not being implemented; or
(4)	The child is otherwise being denied a free, appropriate education.
In addition, a local educational agency may obtain review as provided by this section if a parent, guardian, or surrogate parent refuses to consent to the evaluation of the child for the purpose of determining whether the child is a child with disabilities or for the purpose of developing a free appropriate educational program for the child.
(d)	Administrative Review. – Except as otherwise provided in this section, the administrative review shall be initiated and conducted in accordance with Article 3 of Chapter 150B of the General Statutes, the Administrative Procedure Act.
(e)	Scope of Review. – The issues for review shall be limited to those set forth in subsection (c).
(f)	Venue of Hearing. – The hearing shall be conducted in the county where the child attends school or is entitled to enroll pursuant to G.S. 115C‑366.
(g)	Hearing Closed. – The hearing shall be closed to the public unless the parent, guardian, or surrogate parent, requests in writing that the hearing be open to the public.
(h)	Decision of the Administrative Law Judge. – Following the hearing, the administrative law judge shall make a decision regarding the issues set forth in subsection (c). The decision shall contain findings of fact and conclusions of law. Notwithstanding the provisions of Chapter 150B of the General Statutes, the decision of the administrative law judge becomes final and not subject to further review unless appealed to the Review Officer as provided in subsection (i). A copy of the administrative law judge's decision shall be served upon each party and a copy shall be furnished to the attorneys of record. The written notice shall contain a statement informing the parties of the availability of appeal and the 30‑day limitations period for appeal as set forth in subsection (i).
(i)	Review by Review Officer. – Any party aggrieved by the decision of the administrative law judge may appeal that decision within 30 days after receipt of notice of the decision by filing a written notice of appeal with the Superintendent of Public Instruction. The State Superintendent of Public Instruction shall appoint a Review Officer from a pool of review officers approved by the State Board of Education. A Review Officer shall be an educator or other professional who is knowledgeable about special education and who possesses such other qualifications as may be established by the State Board of Education. The Review Officer may issue subpoenas upon his own motion or upon a written request.
No person may be appointed as a Review Officer if that person is an employee of an agency that has been involved in the education or care of the child whose parents have filed the petition (including an employee or official of the State Department of Education or the State Board of Education) or if the person is or has been employed by the local board of education responsible for the education or care of the child whose parents have filed the petition. The decision of the Review Officer shall contain findings of fact and conclusions of law and becomes final unless an aggrieved party brings a civil action pursuant to subsection (k). A copy of the decision shall be served upon each party and a copy shall be furnished to the attorneys of record. The written notice shall contain a statement informing the parties of the right to file a civil action and the 30‑day limitations period for filing a civil action pursuant to subsection (k).
(j)	Power to Enforce Final Decision. – The State Board shall have the power to enforce the final decision of the administrative law judge, if not appealed pursuant to subsection (i), or the final decision of the Review Officer, by ordering a local educational agency:
(1)	To provide a child with appropriate education;
(2)	To place a child in a private school that is approved to provide special education and that can provide the child an appropriate education; or
(3)	To reimburse parents for reasonable private school placement costs in accordance with the provisions of G.S. 115C‑115 when it is determined that the local educational agency did not offer or provide the child with appropriate education and the private school in which the parent, guardian, or surrogate parent placed the child was an approved school and did provide the child an appropriate education.
(k)	Right to File Civil Action. – Any party aggrieved by the decision of the Review Officer may institute a civil action in State court within 30 days after receipt of the notice of the decision or in federal court as provided in 20 U.S.C. § 1415.
(l)	Change in Placement. – Upon the filing of a petition, no change may be made in the child's status or program by school officials during the period of the administrative review or subsequent judicial review, unless the parent, guardian, or surrogate parent gives written consent."
SECTION 13.  G.S. 115C‑122 reads as rewritten:
"§ 115C‑122.  Early childhood development program; evaluation and placement of children.
The General Assembly of North Carolina declares that the public policy of North Carolina is defined as follows to carry out the policies stated in G.S. 115C‑106:
(1)	The State shall provide for a comprehensive early childhood development program by emphasizing preventative and remedial measures designed to provide the services which will enable children to develop to the maximum level their physical, mental, social, and emotional potentials and to strengthen the role of the family as the first and most fundamental influence on child development. The General Assembly finds that the complexity of early childhood development precludes the enactment of legislation which is of a sufficiently comprehensive nature to encompass all possible implications. The Departments of Public Instruction and Health and Human Services shall, therefore, jointly develop an early childhood development program plan with flexibility sufficient to meet the State's policy as set forth in this subdivision. Said plan shall provide for the operation of a statewide early childhood development program no later than June 30, 1983.
(2)	The State requires a system of educational opportunities for all children with disabilities and requires the identification and evaluation of the needs of children and the adequacy of various education programs before placement of children, and shall provide for periodic evaluation of the benefits of programs to the individual child and the nature of the child's needs thereafter.
(3)	The State shall prevent denial of equal educational and service opportunity on the basis of national origin, sex, economic status, race, religion, and physical, mental, social or emotional disability in the provision of services to any child. Each local school administrative unit shall develop program plans to meet the educational requirements of children with disabilities and each local human services agency shall develop program plans to meet the human service requirements of children with disabilities in accordance with program standards and in a planning format as shall be prescribed by the State Board of Education and the Department of Health and Human Services respectively.
	The General Assembly intends that the educational program and human service program requirements of Session Laws 1973, Chapter 1293, shall be realized no later than June 30, 1982. The General Assembly further intends that currently imposed barriers to educational and human service opportunities for children with disabilities by reason of a single standardized test, income, federal regulations, conflicting statutes, or any other barriers are hereby abrogated; except that with respect to barriers caused by reason of income, it shall be permissible for the State or any local education agency or local human services agency to charge fees for special services rendered, or special materials furnished to a child with disabilities, his parents, guardian or persons standing in loco parentis unless the imposition of such fees would prevent or substantially deter the child, his parents, guardian, or persons standing in loco parentis from availing themselves of or receiving such services or materials.
(4)	It is recognized that children have a variety of characteristics and needs, all of which must be considered if the potential of each child is to be realized; that in order to accomplish this the State must develop a full range of service and education programs, and that a program must actually benefit a child or be designed to benefit a particular child in order to provide such child with appropriate educational and service opportunities. The General Assembly requires that all programs employ least restrictive alternatives as shall be defined by the Departments of Public Instruction and Health and Human Services."
SECTION 14.  G.S. 115C‑139 reads as rewritten:
"§ 115C‑139.  Interlocal cooperation.
(a)	The Board, any two or more local educational agencies and any such agency and any State department, agency, or division having responsibility for the education, treatment or habilitation of children with disabilities are authorized to enter into interlocal cooperation undertakings pursuant to the provisions of Chapter 160A, Article 20, Part 1 of the General Statutes or into undertakings with a State agency such as the Departments of Public Instruction, Health and Human Services, Juvenile Justice and Delinquency Prevention, or Correction, or their divisions, agencies, or units, for the purpose of providing for the special education and related services, treatment or habilitation of such children within the jurisdiction of the agency or unit, and shall do so when it itself is unable to provide the appropriate public special education or related services for these children. In entering into such undertakings, the local agency and State department, agency, or division shall also contract to provide the special education or related services that are most educationally appropriate to the children with disabilities for whose benefit the undertaking is made, and provide these services by or in the local agency unit or State department, agency, or division located in the place most convenient to these children.
(b)	Local educational agencies may establish special education and related programs for children with disabilities aged birth through four and 19 through 21 inclusive."
SECTION 15.  G.S. 115C‑140 reads as rewritten:
"§ 115C‑140.  Contracts with private service‑providers.
State departments, agencies and divisions and local educational agencies furnishing special education and related services to children with disabilities may contract with private special education facilities or service providers to furnish such services as the public providers are unable to furnish. No contract between any public and private service provider shall be effective until it has received the prior written approval of the Board. The Board shall not withhold its approval of the contract unless the private facilities and providers do not meet the Board's standards established pursuant to G.S. 115C‑110(a), (b)(5), and (d)(2)."
SECTION 16.  G.S. 115C‑140.1 reads as rewritten:
"§ 115C‑140.1.  Cost of education of children in group homes, foster homes, etc.
(a)	(Effective until July 1, 2003) Notwithstanding the provisions of any other statute and without regard for the place of domicile of a parent or guardian, the cost of a free appropriate public education for a child with disabilities who is placed in or assigned to a group home, foster home or other similar facility, pursuant to State and federal law, shall be borne by the local board of education in which the group home, foster home or other similar facility is located. Nothing in this section obligates any local board of education to bear any cost for the care and maintenance of a child with disabilities in a group home, foster home or other similar facility.
(a)	(Effective July 1, 2003) Notwithstanding the provisions of any other statute and without regard for the place of domicile of a parent or guardian, the cost of a free appropriate public education for a child with disabilities who is placed in or assigned to a group home, foster home or other similar facility, pursuant to State and federal law, shall be borne by the local board of education in which the group home, foster home or other similar facility is located. However, the local school administrative unit in which a child is domiciled shall transfer to the local school administrative unit in which the institution is located an amount equal to the actual local cost in excess of State and federal funding required to educate that child in the local school administrative unit for the fiscal year. Nothing in this section obligates any local board of education to bear any cost for the care and maintenance of a child with disabilities in a group home, foster home or other similar facility.
(b)	The State Board of Education shall use State and federal funds appropriated for children with disabilities to establish a reserve fund to reimburse local boards of education for the education costs of children assigned to group homes or other facilities as provided in subsection (a) of this section."
SECTION 17.  G.S. 115C‑142 reads as rewritten:
"§ 115C‑142.  Nonreduction.
Notwithstanding any of the other provisions of this Article, it is the intent of the General Assembly that funds appropriated by it for the operation of programs of special education and related services by local school administrative units not be reduced; rather, that adequate funding be made available to meet the special educational and related services needs of children with disabilities, without regard to which State or local department, agency, or unit has the child in its care, custody, control, or program."
SECTION 18.  G.S. 115C‑145 reads as rewritten:
"§ 115C‑145.  Allocation of federal funds.
At such time as any federal moneys for the special education and related services for children with disabilities are made available, these funds shall be allocated according to a formula designed by the Board not inconsistent with federal laws and regulations. Such formula shall insure equitable distribution of resources based upon the number of children with disabilities served by the respective agencies, and shall be implemented as funds are made available from federal and State appropriations."
SECTION 19.  The title of Part 14 of Article 9 of Chapter 115C of the General Statutes reads as rewritten:
"Part 14. Children With Disabilities, Ages Three to Five."
SECTION 20.  G.S. 115C‑146.1 reads as rewritten:
"§ 115C‑146.1.  Definitions.
The term "preschool children with disabilities" includes without limitation all three- and four-year-olds, and those five‑year-olds ineligible for kindergarten:
(1)	Who have reached their third birthday and whose parents have requested services from the public schools, which services shall start no later than the children's third birthday;
(2)	Who are not eligible to enroll in public kindergarten; and
(3)	Who, because of permanent or temporary mental, physical, or emotional handicaps, need special education and related services in order to prepare them to benefit from the educational programs provided by the public schools, beginning with kindergarten. This term includes children who are mentally disabled, learning disabled, behaviorally disabled, autistic,  orthopedically impaired, hearing impaired, speech impaired, blind or visually impaired, multiply handicapped or developmentally delayed, or other health impaired. All evaluations performed pursuant to this Part shall be appropriate to the individual child's age and development."
SECTION 21.  G.S. 115C‑146.2 reads as rewritten:
"§ 115C‑146.2.  Entitlement to services.
Preschool children with disabilities are entitled, at no cost to their parents or guardians, to individualized programs specifically designed to meet their unique needs for special education and related services."
SECTION 22.  G.S. 115C‑146.3 reads as rewritten:
"§ 115C‑146.3.  Obligation to provide services.
(a)	The General Assembly finds:
(1)	That preschool children with disabilities will benefit from the special education and related services required by this Part;
(2)	That the General Assembly has evaluated the known needs of the State and has endeavored to satisfy those needs in comparison to the social and economic problems of the State;
(3)	That the funds appropriated to serve these preschool children with disabilities are a reasonable amount to provide such children with special education and related services; and
(4)	That, therefore, (i) State funds appropriated to implement this Part are the only State funds for public schools that may be used to provide special education and related services to preschool children with disabilities; and (ii) preschool children with disabilities will continue to be served by all other State funds they are otherwise entitled to.
(b)	The State Board of Education shall cause local school administrative units to make available special education and related services to all preschool handicapped children with disabilities whose parents or guardians request these services.
(c)	State funds appropriated to implement the provisions of this Part shall be used to supplement and not supplant existing federal, State, and local funding for the public schools.
(d)	Related services provided under this Part shall be provided by qualified services providers. The term "qualified services provider" means a person who meets State standards for licensure or State Board of Education standards for certification for a specific profession or discipline.
To the extent that the State Board of Education standards include provisions for certification that are less than the standard for certification or licensure for a specific profession, the Department of Public Instruction may certify individuals on a temporary or provisional basis, provided that the State Board of Education shall establish a comprehensive plan and reasonable time lines to ensure that only professionals who meet the appropriate standard for licensure or certification may be employed in the future."
SECTION 23.  G.S. 115C‑174.11(b)(2) reads as rewritten:
"(2)	The tests shall be administered annually to all ninth grade students in the public schools. Students who fail to attain the required minimum standard for graduation in the ninth grade shall be given remedial instruction and additional opportunities to take the test up to and including the last month of the twelfth grade. Students who fail to pass parts of the test shall be retested on only those parts they fail. "SECTION 24.  G.S. 115C‑81(b)(4) reads as rewritten:
"(4)	Standards for student performance and promotion based on the mastery of competencies, including standards for graduation, that take into account children with disabilities and, in particular, include appropriate modifications;".
SECTION 25.  G.S. 115C‑105.25(b)(4) reads as rewritten:
"(b)	Subject to the following limitations, local boards of education may transfer and may approve transfers of funds between funding allotment categories:
…
(4)	Funds allocated for children with disabilities, for students with limited English proficiency, and for driver's education shall not be transferred.
…."
SECTION 26.  G.S. 115C‑238.29F(d)(4) reads as rewritten:
"(4)	The school shall comply with policies adopted by the State Board of Education for charter schools relating to the education of children with disabilities."
SECTION 27.  G.S. 115C‑238.29H(a) reads as rewritten:
"(a)	The State Board of Education shall allocate to each charter school: 
(1)	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;
(2)	An additional amount for each child attending the charter school who is a child with disabilities; and
(3)	An additional amount for children with limited English proficiency attending the charter school, based on a formula adopted by the State Board.
In accordance with G.S. 115C‑238.29D(d), 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.
(a1)	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 or equipment. However, State funds shall not be used to obtain any other interest in real property or mobile classroom units. 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. The school also may own land and buildings it obtains through non‑State sources."
SECTION 28.  G.S. 115C‑242 reads as rewritten:
"§ 115C‑242.  Use and operation of school buses.
Public school buses may be used for the following purposes only, and it shall be the duty of the superintendent of the school of each local school administrative unit to supervise the use of all school buses operated by such local school administrative unit so as to assure and require compliance with this section:
(1)	A school bus may be used for the transportation of pupils enrolled in and employees in the operation of the school to which such bus is assigned by the superintendent of the local school administrative unit. Except as otherwise herein provided, such transportation shall be limited to transportation to and from such school for the regularly organized school day, and from and to the points designated by the principal of the school to which such bus is assigned, for the receiving and discharging of passengers. No pupil or  employee shall be so transported upon any bus other than the bus to which such pupil or employee has been assigned pursuant to the provisions of this Article: Provided, that children enrolled in a Headstart program which is housed in a building owned and operated by a local school administrative unit where school is being conducted may be transported on public school buses, so long as the contractual arrangements made cause no extra expense to the State: Provided further, that children with disabilities may be transported to and from the nearest appropriate private school having a special education program approved by the State Board of Education if the children to be transported are or have been placed in that program by a local school administrative unit as a result of the State or the unit's duty to provide such children with a free appropriate public education.
(2)	In the case of illness or injury requiring immediate medical  attention of any pupil or employee while such pupil or employee is present at the school in which such pupil is enrolled or such employee is employed, the principal of such  school may, in his discretion, permit such pupil or employee  to be transported by a school bus to a doctor or hospital for medical treatment, and may, in his discretion, permit such other person as he may select to accompany such pupil.
(3)	The board of education of any local school administrative unit may operate the school buses of such unit one day prior  to the opening of the regular school term for the transportation of pupils and employees to and from the school to which such pupils are assigned or in which they are enrolled and such employees are employed, for the purposes of the registration of students, the organization of classes, the distribution of textbooks, and such other purposes as will, in the opinion of the superintendent of the schools of such unit, promote the efficient organization and operation of such public schools.
(4)	A local board of education which elects to operate a school bus transportation system, shall not be required to provide transportation for any school employee, nor shall such board be required to provide transportation for any pupil living within one and one half miles of the school in which such pupil is enrolled.
(5)	Local boards of education, under rules and regulations adopted by the State Board of Education, may permit the use and operation of school buses for the transportation of pupils and instructional personnel as the board deems necessary to serve the instructional programs of the schools. Included in the use permitted by this section is the transportation of children with disabilities, such as mentally retarded children and children with physical defects, and children enrolled in programs that require transportation from the school grounds during the school day, such as special vocational or occupational programs. On any such trip, a city or county‑owned school bus shall not be taken out of the State.
		If State funds are inadequate to pay for the transportation approved by the local board of education, local funds may be used for these purposes. Local boards of education shall determine that funds are available to such boards for the transportation of children to and from the school to which they are assigned for the entire school year before authorizing the use and operation of school buses for other services deemed necessary to serve the instructional program of the schools.
		Children with disabilities may be transported to and from the nearest appropriate private school having a special education program approved by the State Board of Education if the children to be transported have been placed in that program by a local school administrative unit as a result of the State or the unit's duty to provide such children with a free appropriate public education.
(6)	School buses owned by a local board of education may be used for emergency management purposes in any state of disaster or local state of emergency declared under Chapter 166A of the General Statutes. Under rules and regulations adopted by a local board of education, its school buses may be used with its permission for the purpose of testing emergency management plans; however, neither the State Board of Education nor the local board of education shall be liable for the operating cost, any compensation claims or any tort claims resulting from the test.
(7)	Uses authorized by G.S. 115C‑243."
SECTION 29.  G.S. 115C‑250 reads as rewritten:
"§ 115C‑250.  Authority to expend funds for transportation of children with disabilities.
(a)	The State Board of Education and local boards of education may expend public funds for transportation of handicapped children with disabilities who are unable because of their handicap to ride the regular school buses and who have been placed in programs by a local school board as a part of its duty to provide such children with a free appropriate education, including its duty under G.S. 115C‑115. At the option of the local board of education with the concurrence of the State Board of Education, funds appropriated to the State Board of Education for contract transportation of exceptional children may be used to purchase buses and minibuses as well as for the purposes authorized in the budget. The State Board of Education shall adopt rules and regulations concerning the construction and equipment of these buses and minibuses.
The Departments of Health and Human Services, Juvenile Justice and Delinquency Prevention, and Correction may also expend public funds for transportation of handicapped children with disabilities who are unable because of their handicap to ride the regular school buses and who have been placed in programs by one of these agencies as a part of that agency's duty to provide such children with a free appropriate public education.
If a local area mental health center places a child with disabilities in an educational program, the local area mental health center shall pay for the transportation of the child, if handicapped and unable because of the handicap to ride the regular school buses, to the program.
(b)	Funds appropriated for the transportation of children with disabilities may be used to pay transportation safety assistants employed in accordance with the provisions of G.S. 115C‑245(e) for buses to which children with disabilities are assigned."
SECTION 30.  G.S. 115C‑397.1 reads as rewritten:
"§ 115C‑397.1.  Management and placement of disruptive students.
If, after a teacher has requested assistance from the principal two or more times due to a student's disruptive behavior, the teacher finds that the student's disruptive behavior continues to interfere with the academic achievement of that student or other students in the class, then the teacher may refer the matter to a school‑based committee. The teacher may request that additional classroom teachers participate in the committee's proceedings. For the purposes of this section, the committee shall notify the student's parent, guardian, or legal custodian and shall encourage that person's participation in the proceedings of the committee concerning the student. A student is not required to be screened, evaluated, or identified as a child with disabilities under this section. The committee shall review the matter and shall take one or more of the following actions: (i) advise the teacher on managing the student's behavior more effectively, (ii) recommend to the principal the transfer of the student to another class within the school, (iii) recommend to the principal a multidisciplinary diagnosis and evaluation of the student, (iv) recommend to the principal that the student be assigned to an alternative learning program, or (v) recommend to the principal that the student receive any additional services that the school or the school unit has the resources to provide for the student. If the principal does not follow the recommendation of the committee, the principal shall provide a written explanation to the committee, the teacher who referred the matter to the committee, and the superintendent, of any actions taken to resolve the matter and of the reason the principal did not follow the recommendation of the committee.
This section shall be in addition to the supplemental to disciplinary action taken in accordance with any other law. The recommendation of the committee is final and shall not be appealed under G.S. 115C‑45(c). Nothing in this section shall authorize a student to refer a disciplinary matter to this committee or to have the matter of the student's behavior referred to this committee before any discipline is imposed on the student."
SECTION 31.  G.S. 7B‑1301(d)(1) reads as rewritten:
"(d)	Programs contracted for under this Article are intended to prevent abuse and neglect of juveniles. Abuse and neglect prevention programs are defined to be those programs and services which impact on juveniles and families before any substantiated incident of abuse or neglect has occurred. These programs may include, but are not limited to:
(1)	Community‑based educational programs on prenatal care, perinatal bonding, child development, basic child care, care of children with disabilities, and coping with family stress; and".
SECTION 32.  G.S. 7B‑3904 reads as rewritten:
"§ 7B‑3904.  Medical assistance.
(a)	A child with disabilities who is a resident of this State who is the subject of an adoption assistance agreement with another state shall be accepted as being entitled to receive medical assistance certification from this State upon the filing in the department of social services of the county in which the child resides a certified copy of the adoption assistance agreement obtained from the adoption assistance state.
(b)	The Division of Medical Assistance shall consider the holder of a medical assistance certification under this section to be entitled to the same medical benefits under the laws of this State as any other holder of a medical assistance certification and shall process and make payment on claims on account of that holder in the same manner and under the same conditions and procedures that apply to other recipients of medical assistance.
(c)	The provisions of this section apply only to medical assistance for children under adoption assistance agreements from states that have entered into a compact with this State under which the other state provides medical assistance to children with disabilities under adoption assistance agreements made by this State."
SECTION 33.  G.S. 108A‑49(b) reads as rewritten:
"(b)	Adoption assistance payments for certain adoptive children shall be granted in accordance with the rules of the Social Services Commission to adoptive parents who adopt a child eligible to receive foster care maintenance payments or supplemental security income benefits; provided, that the child cannot be returned to his or her parents; and provided, that the child has disabilities which create a financial barrier to adoption. A county department of social services shall pay, at a minimum, the monthly graduated adoption assistance payments for eligible children as set by the General Assembly. A county department of social services may make adoption assistance payments in excess of the monthly graduated rates set by the General Assembly."
SECTION 34.  G.S. 108A‑70.22 reads as rewritten:
"§ 108A‑70.22.  Allocation of federal and State funds for Program; consultation with Joint Legislative Health Care Oversight Committee.
The Department of Health and Human Services, after having consulted with and received advice from the Joint Legislative Health Care Oversight Committee established under G.S. 120‑70.110, shall from total funds available to the Department for Program implementation, allocate and adjust, as needed, funds to pay the North Carolina Teachers' and State Employees' Major Medical Plan in accordance with G.S. 108A‑70.23 and Part 5 of Article 3 of Chapter 135 of the General Statutes, and funds to pay for eligible services provided for children with disabilities  in accordance with G.S. 108A‑70.23."
SECTION 35.  G.S. 108A‑70.23 reads as rewritten:
"§ 108A‑70.23.  Services for children with disabilities established; definition; eligibility; services; limitation; recommendations; no entitlement.
(a)	Services Authorized. – The Department shall, from federal funds received and State funds appropriated for the Program, pay for services for children with disabilities as authorized under this section. As used in this section, the term "children with disabilities" means children who have been diagnosed as having one or more of the following conditions which in the opinion of the diagnosing physician (i) is likely to continue indefinitely, (ii) interferes with daily routine, and (iii) require extensive medical intervention and extensive family management:
(1)	Birth defect, including genetic, congenital, or acquired disorders;
(2)	Developmental disability as defined under G.S. 122C‑3;
(3)	Mental or behavioral disorder; or
(4)	Chronic and complex illnesses.
(b)	Eligibility for Services. – In order to be eligible for services under this section a child with disabilities must be enrolled in the Program.
(c)	Services Provided. – The services authorized to be provided to children eligible under this section are as follows:
(1)	The same level of services as provided for children with disabilities under the Medical Assistance Program as authorized in the Current Operations Appropriations Act except that no services for long‑term care shall be provided under this section, and except that services for respite care shall be provided only under emergency circumstances; and
(2)	Only those services eligible under this section that are not covered or otherwise provided under Part 5 of Article 3 of Chapter 135 of the General Statutes.
(d)	Limitation. – Funds may be expended for services under this section only if the child with disabilities is enrolled in the Program, the services provided under this section are not provided under Part 5 of Article 3 of Chapter 135 of the General Statutes, and the child meets the definition of a child with disabilities under this section.
(e)	Case Management Services. – The Department shall develop procedures for the provision of case management services by the Department to eligible children with disabilities. Case management services shall be developed to ensure to the maximum extent possible that services are provided in the most efficient and effective manner considering the disabilities of the child. The cost of providing case management services for children with disabilities shall be paid from funds available for services under this section.
(f)	Recommendations by Commission on Children With Special Health Care Needs. – In implementing this section the Department shall consider the recommendations of the Commission on Children With Special Health Care Needs established under Article 71 of Chapter 143 of the General Statutes. The Department, in consultation with the Commission on Children With Special Health Care Needs shall develop procedures for providing respite care services under emergency circumstances.
(g)	No Entitlement. – Nothing in this section shall be construed as entitling any person to services under this section."
SECTION 36.  G.S. 110‑91(11) reads as rewritten:
"§ 110‑91.  Mandatory standards for a license.
All child care facilities shall comply with all State laws and federal laws and local ordinances that pertain to child health, safety, and welfare. Except as otherwise provided in this Article, the standards in this section shall be complied with by all child care facilities. However, none of the standards in this section apply to the school‑age children of the operator of a child care facility but do apply to the preschool‑age children of the operator. Children 13 years of age or older may receive child care on a voluntary basis provided all applicable required standards are met. The standards in this section, along with any other applicable State laws and federal laws or local ordinances, shall be the required standards for the issuance of a license by the Secretary under the policies and procedures of the Commission except that the Commission may, in its discretion, adopt less stringent standards for the licensing of facilities which provide care on a temporary, part‑time, drop‑in, seasonal, after‑school or other than a full‑time basis.
…
(11)	Staff Development. – The Commission shall adopt minimum standards for ongoing staff development for facilities but limited to the following topic areas:
a.	Planning a safe, healthy learning environment;
b.	Steps to advance children's physical and intellectual development;
c.	Positive ways to support children's social and emotional development;
d.	Strategies to establish productive relationships with families;
e.	Strategies to manage an effective program operation;
f.	Maintaining a commitment to professionalism;
g.	Observing and recording children's behavior;
h.	Principles of child growth and development; and
i.	Learning activities that promote inclusion of children with disabilities.
	These standards shall include annual requirements for ongoing staff development appropriate to job responsibilities. A person may carry forward in‑service training hours that are in excess of the previous year's requirement to meet up to one‑half of the current year's required in‑service training hours.
…."
SECTION 37.  G.S. 143‑318.14A(a)(13) reads as rewritten:
"(a)	Except as provided in subsection (e) below, all official meetings of commissions, committees, and standing subcommittees of the General Assembly (including, without limitation, joint committees and study committees), shall be held in open session. For the purpose of this section, the following also shall be considered to be "commissions, committees, and standing subcommittees of the General Assembly":
…
(13)	The Commission on Children with Disabilities;".
SECTION 38.  This act is effective when it becomes law.

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