NC H539

Adds liquidated damages equal to 5% of funds owed to charter schools when local school administrative units fail to transfer required monies within required timelines.

Awards prevailing party in charter school funding disputes reasonable attorneys' fees and court costs, with payments ordered in equal monthly installments no later than one year from judgment.

Restricts what funds local school administrative units can use outside the three main budget categories (State Public School Fund, local current expense fund, capital outlay fund) to 14 specifically enumerated categories including prekindergarten, federal grants, facility rentals, and tuition.

Clarifies that local current expense funds must include revenues such as indirect costs, reimbursements, sales tax revenues, gifts and grants (with certain exceptions), and federal appropriations made directly to local school administrative units.

Effective July 1, 2016 for the 2016-2017 school year, with charter school damage provisions applicable to actions filed on or after the law takes effect.