VoJoViC-. 5cKoo\ U.cxjuo-S»— V^Hj a. ^ ®{je Htbrarg of iff* Htttermtg nf Nnrtlj feoltna Publication No. 230 Public School Laws A Supplement to THE PUBLIC SCHOOL LAW Printed in 1929 Session 1941 AND Prior Sessions Issued by the State Superintendent of Public Instrltction Raleigh, North Carolina INTRODUCTORY NOTE The Public School Law of North Carolina, in the main being Chapter 136, Public Laws of 1923, as amended, together with other public school laws enacted by the General Assemblies of Extra Session 1924, Sessions 1925, 1927, and 1929, was printed in 1929. The bulletin containing these laws has had wide distribution among the school officials of the State. It is the purpose of this publication to make available all public school laws enacted by the General Assemblies that have met since 19 29, in- cluding both those laws printed in the former bulletin that have been amended* and those that have since been enacted which are now effective. This pamphlet, therefore, is intended as a supplement to the original publication of 192 9, and the two together make the complete school code of the State. State Superintendent of Public Instruction. March 29, 1941. ♦Amendments are printed in italics. 4 CONTENTS Page An Act to provide for the administration and operation of a uniform system of public schools of the State for the term of eight months without the levy of an ad valorem tax therefor 7 An Act to exempt gasoline used in public school transportation from all gasoline taxes imposed by the State of North Carolina 25 An Act to permit the State School Commission to operate the school buses one day prior to the opening of the public school term for the purpose of organizing the school and promoting the efficiency of the operation of the same... 26 An Act to provide compensation for school children killed and /or injured while riding on a school bus to and from the public schools of the State: and to authorize the State School Commission to set aside certain funds for that purpose out of which medical and hospital expenses and death claims shall be paid - 27 An Act to promote safety in the transportation of the school children of North Carolina ~ 28 Vacancies in office of county board of education 29 An Act to appoint certain members of the boards of education of the respective counties of North Carolina, fix their terms of office and limit compensation at State expense _ 29 An Act to provide for the extension of the public school system to embrace twelve grades in those school districts requesting the same 33 An Act to amend the Constitution providing for the organization of the State Board of Education and the powers and duties of the same 34 An Act to provide educational advantages in State institutions to World War orphans .. 36 An Act to amend Senate Bill number one hundred and thirty-three, Chapter two hundred and forty-two, Public Laws of one thousand nine hundred and thirty-seven, in regard to World War orphans..^ 37 An Act to provide for the issuance of school district refunding and I funding bonds 38 _, An Act to authorize the transfer of school district sinking funds to country treasurers 3 9 "7* An Act to promote further efficiency in the public schools 40 CONTENTS — Continued Page An Act to provide for competitive bidding for construction or repair work- or for the purchase of apparatus, supplies, materials or equipment by the State of North Carolina or the sub-divisions thereof 40 An Act to repeal an Act "To provide for competitive bidding for construction or repair work or for the purchase of apparatus, supplies, materials or equipment by the State of North Carolina or the sub-divisions thereof," enrolled and ratified May 9, 1933 42 The erection of schoolhouses 42 An Act prescribing the manner of advertisement and sale of school property 43 An Act to provide old age security for old and incapacitated teachers, and State employees, to provide for the creation of a retirement fund through the joint contributions of employers and employees, and to provide machinery for the proper administration of this law _ 44 An Act to require any person, partnership, association of persons, or corporation that may hereafter be organized as business schools in North Carolina to comply with their contracts with the students, etc., who matriculate with them for the purpose of taking commer- cial courses in accounting, bookkeeping, stenography, stenotypy, telegraphy, typing, and other branches generally included in the curriculum of such schools; to require such institutions, before collecting fees, tuition, and other expenses from students who desire to take such courses in such institutions, to enter into a bond executed by standard and solvent guaranty companies guar- anteeing the refund of such fees, tuition, and other expenses as are paid, in case the promoters, officers, and agents of such insti- tutions fail to comply with their contract; to provide penalties for failure to refund to any student the amounts whenever the promoters, officers and agents of such institutions fail to comply with their contract to give and furnish training in commercial courses according to the contract entered into 59 An Act to repeal Chapter one hundred sixty-one, Public Laws of one thousand nine hundred nineteen, and to provide for a program of adult education as a part of the State public school system, and to appropriate the sum of twenty-five thousand (125,000) dollars annually for carrying out the provisions of this Act 62 Textbooks for elementary grades 63 An Act to promote economy and efficiency in the operation of the public high schools of the State of North Carolina by providing for a uniform adoption of high school text-books 67 An Act to require the public schools of the State to furnish adequate and scientific instruction in the subject of alcoholism and narcotism __ __ 68 CONTENTS— Continued Page An Act to provide a rental system for text-books used in the public schools of the State and to promote economy and efficiency in the adoption of text-books _.. 1 69 An Act supplemental to and amending Chapter four hundred twenty- two, Public Laws of one thousand nine hundred thirty-five, and to provide free basal text-books to the elementary school children of the State, and to continue the rental system for high school books and supplementary readers 72 An Act to incorporate the North Carolina State Thrift Society 75 An Act to provide for instruction in thrift and saving in the public schools of the State — ~ . __ 76 General compulsory attendance law 77 An Act to authorize the Governor to appoint a commission to investi- gate the feasibility of establishing one or more farm trade schools 79 A joint resolution to provide for giving instructions in safety educa- tion in public schools 80 A joint resolution authorizing the Governor of North Carolina to appoint a commission to study the various State supported educa- tional institutions and departments 81 Digitized by the Internet Archive in 2011 with funding from Ensuring Democracy through Digital Access (NC-LSTA) http://www.archive.org/details/publicschoollaws1941nort PUBLIC SCHOOL LAWS Enacted by the General Assembly of North Carolina A Supplement to The Public School Law Printed in 1929 AN ACT TO PROVIDE FOR THE ADMINISTRATION AND OPERATION OF A UNIFORM SYSTEM OF PUBLIC SCHOOLS OF THE STATE FOR THE TERM OF EIGHT MONTHS WITHOUT THE LEVY OF AN AD VALOREM TAX THEREFOR. The General Assembly of North Carolina do enact: Section 1. (a) Purpose of the Act. The purpose of this Act is to provide for the administration and operation of a uniform system of public schools of the State for the term of eight months without the levy of an ad valorem tax therefor, and it is the purpose of this General Assembly to change the policy heretofore followed by previous General Assemblies of reenacting biennially the School Machinery Act, and this Act shall remain in force until repealed or amended by subsequent Acts of the General Assembly. (b) Appropriation. That the appropriation made under Title nine "(IX-1) -Support of Eight Months' Term Public Schools," of "An Act to Make Appropriations for the Maintenance of the State's Departments, Bureaus, Institutions, and Agencies, and for Other Purposes," and such funds as may be made available by Acts of the Congress of the United States for public schools, and such other funds as may be made available from all other sources for the support of the eight months' term public schools, for the year ending June thirtieth, one thousand nine hundred forty, and annually thereafter, shall be apportioned for the operation of an eight months' school term as hereinafter provided. Sec. 2. State School Commission. The State School Commission shall be constituted as follows: The Lieutenant-Governor as ex officio chair- man, the State Superintendent of Public Instruction as vice-chairman, the State Treasurer, and one member from each Congressional District to be appointed by the Governor. The said appointive members shall serve for a period of two years from the time of their appointment and receive such compensation as now provided by law. All the powers and duties hereto- fore conferred by law upon the State School Commission, together with such other powers and duties as may be conferred by this Act, shall be vested in the State School Commission. The said school commission may appoint an executive secretary, who shall select other employees necessary for the proper administration of this Act to be approved by the State School Commission, subject to the provisions of Chapter two hundred seventy- seven, Public Laws of one thousand nine hundred thirty-one. The cost and expenses of said commission shall be paid out of the appropriation made for the public schools as provided in Section one of this Act. Sec. 3. Duties of the Commission. In addition to the duties and powers vested in the State School Commission as set out in Section two of this Act, together with such other powers as may be conferred by law, it 8 Public School Laws shall be the duty of the said commission, in accordance with the provisions of this Act, to administer funds for the operation of the schools of the State for one hundred sixty days on standards to be determined by said commission and within the total funds set out in Section one of this Act. The State School Commission may designate from its membership an executive committee, composed of the Lieutenant-Governor, the State Superintendent of Public Instruction, the State Treasurer, and two other members, with whom the executive secretary may confer with reference to the administration of this Act when the commission is not in session. The purpose of this provision is to provide an agency for consultation and advice as to questions arising between meetings of the commission, and for the purpose of effectuating a closer unity between the different agen- cies dealing with the schools. The secretary shall keep a record of the proceedings of any meetings of the executive committee in the same manner as proceedings of the full commission are kept and recorded. Sec. 4. Length of School Term. That the six months' school term required by Article nine of the Constitution is hereby extended to embrace a total of one hundred sixty days of school in order that there shall be operated in every county and district in the State, which shall request the same, a uniform term of eight months: Provided, that the State School Commission, or the governing body of any administrative unit, may suspend the operation of any school or schools in such unit, not to exceed a period of forty days of said consolidated term, when in the sound judg- ment of said commission, or the governing body of any administrative unit, the low average in any school does not justify its continuance, or necessity may require it: Provided, that all schools served by the same school bus or busses shall have the same opening date. A school month shall consist of four weeks and not less than twenty teaching days, no day of which shall be a Saturday, unless in case of emergency, and subject to the approval of the local committee and the superintendent of the administrative unit; and salary warrants for the payment of all State teachers, principals, and others employed for the school term shall be issued each school month to such persons as are en- titled to same. The salaries of superintendents and others employed on an annual basis shall be paid per calendar month: Provided, that teachers may be paid in twelve equal monthly installments in such administrative units as shall request the same of the State School Commission on or before October first of each school year. Before such request shall be filed, it shall be approved by the governing board, the superintendent, and a majority of the teachers in said administrative unit. The payment of the annual salary in twelve installments instead of eight shall not increase or decrease said annual salary nor in any other way alter the contract made between the teacher and the said administrative unit; nor shall such pay- ment apply to any teacher who is employed for a period less than eight months. Sec. 5. School Organizations. The State School Commission, in mak- ing provision for the operation of the schools, shall classify each county as an administrative unit and shall, with the advice of the county board of education, make a careful study of the existing district organization in each county administrative unit, and may modify such district organiza- Public School Laws 9 tion when deemed necessary for the economical administration and opera- tion of the State school system, and shall determine whether there shall be operated in such district an elementary or a union school. Provisions shall not be made for a high school with an average daily attendance of less than sixty pupils, nor an elementary school with an average daily at- tendance of less than twenty-five pupils, unless a careful survey by the State Superintendent of Public Instruction and the State School Com- mission reveals that geographic or other conditions make it impracticable to provide for them otherwise. Funds shall not be made available for such schools until the said survey has been completed and such schools have been set up by the said school commission. It shall be within the discretion of the State School Commission, wherever it shall appear to be more economical for the efficient operation of the schools, to transfer children living in one administrative unit or district to another administrative unit or district for the full term of such school without the payment of tuition: Provided, that sufficient space is available in the buildings of such unit or district to which the said children are transferred: Provided further, the provision as to the nonpayment of tuition shall not apply to children who have not been transferred as set out in this section. City administrative units as now constituted shall be dealt with by the State school authorities in all matters of school administration in the same way and manner as are county administrative units: Provided, that in all city administrative units as now constituted the trustees of the said special charter districts, included in said city administrative unit, and their duly elected successors, shall be retained as the governing body of such district; and the title to all property of the said special charter district shall remain with such trustees, or their duly chosen successors; and the title to all school property hereafter acquired or constructed within the said city administrative unit, shall be taken and held in the name of the trustees of said city administrative unit; and the County Board of Com- missioners of any county shall provide funds for the erection or repair of necessary school buildings on property, the title to which is held by the board of trustees as aforesaid, and the provisions of Consolidated Statutes of one thousand nine hundred nineteen, Section five thousand four hun- dred seventy-two, to the extent in conflict herewith, is hereby repealed: Provided, that nothing in this Act shall prevent city administrative units, as now established, from consolidating with the county administrative unit in which such city administrative unit is located, upon petition of the trus- tees of the said city administrative unit and the approval of the county board of education and the County Board of Commissioners in said county: Provided, further, that nothing in this Act shall affect the right of any special charter district, or special tax district which now exists for the purpose of retiring debt service, to have the indebtedness of such district taken over by the county as provided by existing law, and nothing herein shall be construed to restrict the county board of education and/or the Board of County Commissioners in causing such indebtedness to be as- sumed by the county as provided by existing law. The board of trustees for any special charter district in any city adminis- trative unit shall be appointed as now provided by law. If no provision is now made by law for the filling of vacancies in the membership of such 10 Public School Laws board of trustees, such vacancy may be filled by the governing body of the city or town embraced by said administrative unit. In all cases where title to property has been vested in the trustees of a special charter district which has been abolished and has not been re- organized, title to such property shall be vested in the county board of education of the county embracing such special charter district. Sec. 6. Administrative Officers. The administrative officer in each of the units now designated shall be a county superintendent of schools for a county administrative unit and a city superintendent of schools for a city administrative unit. The salaries of county superintendents and city superintendents shall be in accordance with a State standard salary schedule to be fixed and de- termined by the State Board of Education and State School Commission as provided for in Section twelve of this Act; and such salary schedule for superintendents shall be determined on the same basis for both county and city superintendents and shall take into consideration the amount of work inherent to the office of both county and city superintendents; and such schedule shall be published in the same way and manner as the schedules for teachers' and principals' salaries are now published: Provided, that it shall be lawful for the county superintendent of schools in any county, with the approval of the State Superintendent of Public Instruction, to serve as principal of a high school of said county; and the sum of not exceeding three hundred dollars ($300.00), to be paid from State instruc- tional service funds, may be added to his salary and shall be included in the budget approval by the State School Commission: Provided, further, that a county superintendent may also be elected and serve as a city superintendent in any city administrative unit in the county which he serves as county superintendent: Provided, further, that a county superin- tendent may serve as welfare officer and have such additional compensa- tion as may be allowed by the county commissioners of such county, to be paid from county funds, subject to the approval of the State School Com- mission. At a meeting to be held the first Monday in April, one thousand nine hundred thirty-nine, or as soon thereafter as practicable, and biennially thereafter during the month of April, the various county boards of edu- cation shall meet and elect a county superintendent of schools, subject to the approval of the State Superintendent of Public Instruction and the State School Commission, who shall take office July first and shall serve for a period of two years, or until his successor is elected and qualified. A certification to the county board of education by the State Superin- tendent of Public Instruction showing that the person proposed for the office of county superintendent of schools is a graduate of a four year standard college, or at the present time holds a superintendent's certificate, and has had three years' experience in school work in the past tern years, together with a doctor's certificate showing the person to be free from any contagious disease, shall make any citizen of the State eligible for this office. In all city administrative units, the superintendent of schools shall be elected by the board of trustees, or other school governing agency of such unit, to serve for a period of two years; and the qualifications, approval, and date of election shall be the same as for county superintendents. The Public School Laws 11 city superintendent is hereby ex officio secretary to the governing body of said city administrative unit. At its first regular meeting in April, or as soon thereafter as practicable, the board of trustees, or other governing board of a city administrative unit, shall elect principals, teachers, and other necessary employees of the schools within said unit on the recommendation of the city superintendent. Sec. 7. School Committees. At the first regular meeting during the month of April, one thousand nine hundred thirty-nine, or as soon there- after as practicable, and biennially thereafter, the county boards of edu- cation shall elect and appoint school committees for each of the several districts in their counties, consisting of not less than three nor more than five persons for each school district, whose term of office shall be for two years: Provided, that in the event of death or resignation of any member of said school committee, the county board of education shall be em- powered to select and appoint his or her successor to serve the remainder of the term: Provided, that in units desiring the same, by action of the county board of education and subject to the approval of the State School Commission, one third of the members may be selected for a term of one year, one third of the members for a term of two years, and one third of the members for a term of three years, and thereafter all members for a term of three years from the expiration of said terms. The district committee shall elect the principals for the schools of the districts, subject to the approval of the county superintendent of schools and the county board of education. The principals of the districts shall nominate and the district committees shall elect the teachers for all the schools of the districts, subject to the approval of the county superin- tendent of schools and the county board of education. The distribution of the teachers between the several schools of the district shall be subject to the approval of the county board of education. In the event the local school authorities herein provided for are unable to agree upon the nomi- nation and election of teachers, the county board of education shall select the teacher or teachers, which selection shall be final for the ensuing school term. All principals and teachers shall enter into a written con- tract upon forms to be furnished by the State Superintendent of Public Instruction before becoming eligible to receive any payment from State funds. It shall be the duty of the county board of education in a county administrative unit, and of the governing body of a city administrative unit, to cause written contracts on forms to be furnished by the State to be executed by all teachers and principals elected under the provisions of this Act before any salary vouchers shall be paid: Provided that such con- tract shall continue from year to year until said teacher or principal is notified as provided in Section twelve of this Act, as amended: Provided, further, that such teacher or principal shall give notice to the superintendent of schools of the administrative unit in which said teacher or principal is employed, within ten days after the close of school, of his or her acceptance of employment for the following year: Provided, further, that the county board of education may appoint an advisory committee of three members for each school building in said school district, who shall care for the school property and perform such other duties as may be defined by the county board of education. 1941, c. 267, s. 2. 12 Public School Laws Sec. 8. Organization Statement and Allotment of Teachers. On or before the twentieth day of May in each year, the several administrative officers shall present to the State School Commission a certified statement showing the organization of the schools in their respective units, together with such other information as said commission may require. The or- ganization statement as filed for each administrative unit shall indicate the length of term the State is requested to operate the various schools for the following school year, and the State shall base its allotment of funds upon such request. On the basis of such organization statement, together with all other available information, and under such rules and regulations as the State School Commission may promulgate, the State School Com- mission shall determine for each administrative unit, by districts and races, the number of elementary and high school teachers to be included in the State Budget, provided that loss in attendance due to epidemics or apparent increase in attendance due to the establishment of army camps or other national defense activities shall be taken into consideration in the initial allotment of teachers: Provided, further, that the superintendent of an administrative unit shall not be included in the number of teachers and principals allotted on the basis of average daily attendance. It shall be the duty of the governing body in each administrative unit, after the opening of the schools in said unit, to make a careful check of the school organization and to request the State School Commission to make changes in the allocation of teachers to meet requirements of the said unit. 1941, c. 267, s. 3. Sec. 9. Objects of Expenditure. The appropriation of State funds, as provided under the provisions of this Act, shall be used for meeting the costs of the operation of the public schools as determined by the State School Commission, for the following items: 1. General Control: a. Salaries of superintendents b. Travel of superintendents c. Salaries of clerical assistants for superintendents d. Office expense of superintendents e. Per diem county boards of education in the sum of one hundred dollars ($100.00) to each county f. Audit of school funds 2. Instructional Service: a. Salaries for white teachers, both elementary and high school b. Salaries for colored teachers, both elementary and high school c. Salaries of white principals d. Salaries of colored principals e. Instructional supplies 3. Operation of Plant: a. Wages of janitors b. Fuel c. Water, light and power d. Janitors' supplies e. Telephone expense Public School Laws 13 4. Auxiliary Agencies: a. Transportation (1) Drivers and contracts (2) Gas, oil, and grease (3) Mechanics (4) Parts, tires, and tubes (5) Replacement busses (6) Compensation for injuries and/or death of school children as now provided by law b. Libraries c. Health In allotting funds for the items of expenditures hereinbefore enumer- ated, provision shall be made for a school term of only one hundred sixty days. The State School Commission shall effect all economies possible in pro- viding State funds for the objects of general control, operation of plant, and auxiliary agencies, and after such action shall have authority to in- crease or decrease on a uniform percentage basis the salary schedule of teachers, principals, and superintendents in order that the appropriation of State funds for the public schools may insure their operation for the length of term provided in this Act: Provided, however, that the State School Com- mission and county boards of education for county administrative units and boards of trustees for city administrative units, shall have power and authority to promulgate rules by which school buildings may be. used for other purposes. The objects of expenditure designated as Maintenance of Plant and Fixed Charges shall be supplied from funds required by law to be placed to the credit of the public school funds of the county and derived from fines, forfeitures, penalties, dog taxes, and poll taxes, and from all other sources except State funds: Provided, that when necessity shall be shown, and upon the approval of the county board of education or the trustees of any city administrative unit, the State School Commission may approve the use of such funds in any administrative unit to supplement any object or item of the current expense budget, including the supplementing of the teaching of vocational subjects; and in such cases the tax levying authori- ties of the county administrative unit shall make a sufficient tax levy to provide the necessary funds for Maintenance of Plant, Fixed Charges, and Capital Outlay: Provided, further, that the tax levying authorities in any county administrative unit, with the approval of the State School Com- mission, may levy taxes to provide necessary funds for teaching vocational agriculture and home economics and trades and industrial vocational sub- jects supported in part from Federal vocational educational funds: Provided, further, that nothing in this Act shall prevent the use of Federal and/or privately donated funds which may be made available for the operation of the public schools under such regulations as the State Board of Education may provide. Sec. 10. State Budget Estimate. The State budget estimate shall be determined by the State School Commission for each county and city administrative unit by ascertaining the sum of the objects of expenditure according to and within the limits fixed by this Act, and within the mean- 14 Public School Laws ing of the rules and regulations promulgated by the State School Com- mission; and the certification of same shall be made to each county superintendent, city superintendent, and the State Superintendent of Public Instruction on or before June first of each year. Sec. 11. Salary Costs. That upon receipt of notice from the State School Commission of the total number of teachers, by races and for county and city administrative units separately, the State Superintendent of Pub- lic Instruction shall then determine, in accordance with the schedule of salaries established, the total salary cost in each and every administrative unit for teachers, principals, and superintendents to be included in the State budget for the next succeeding fiscal year for the consolidated school term as herein defined. This amount as determined from a check of the costs for the preceding year with adjustments resulting from changes in the allotment of teachers, shall be certified to the State School Commis- sion; together with the number of elementary and high school teachers and principals employed in accordance with the provisions of this Act, separately by races, and for city and county administrative units. Sec. 12. State Standard Salary Schedule. The State Board of Edu- cation and the State School Commission shall fix and determine a State standard salary schedule for teachers, principals, and superintendents, which shall be the maximum standard State salaries to be paid from State funds to the teachers, principals, and superintendents; and all contracts with teachers and principals shall be made locally by the county board of education and/or the governing authorities of city administrative units, giving due consideration to the peculiar conditions surrounding each em- ployment, the competency and experience of the teacher or principal, the amount and character of work to be done, and any and all other things which might enter into the contract of employment: Provided, however, that the compensation contracted to be paid out of State funds to any teacher, principal, or superintendent shall be within the maximum salary limit to be fixed by the State Board of Education and the State School Commission, as abo^e provided, and within the allotment of funds as made to the administrative unit for the item of instructional salaries: Provided, further, that no teacher or principal shall be required to attend summer school during the years one thousand nine hundred, forty-one and one thousand nine hundred forty-two, and the certificate of such teacher or principal as may have been required to attend such school shall not lapse but shall remain in full force and effect, and all credits earned by summer school and/or completing extension course or courses shall not be impaired, but shall continue in full force and effect. Any teacher or principal desiring election as teacher or principal in a •particular administrative unit who was not employed by said unit during a current year shall file his or her application in writing with the county or city superintendent of schools. It shall be the duty of such county superintendent or administrative head of a city administrative unit to notify all teachers and/or principals now or hereafter employed, by registered letter, of his or her rejection prior to the close of the school term subject to the allotment of teachers made by the State School Commission: Provided, further, that principals and teachers desiring to resign must give not less than thirty days notice Public School Laws 15 prior to opening of school in which the teacher or principal is employed to the official head of the administrative unit in writing. Any principal or teacher violating this provision may be denied the right to further service in the public schools of the State for a period of one year unless the county board of education or the board of trustees of the administrative unit where this provision was violated waives this penalty by appropriate resolution. In the employment of teachers, no rule shall be made or enforced which discriminates with respect to the sex, marriage, or nonmarriage of the applicant. 1941, c. 267, ss. 4, 5. Sec. 13. Principals Allowed. In all schools with fewer than fifty teachers allowed under the provisions of this Act, the principals shall be included in the number of teachers allowed. In schools with fifty or more teachers, one whole time principal shall be allowed; that for each forty teachers in addition to the first fifty, one additional whole time principal, when and if actually employed, shall be allowed: Provided, that in the the allocation of State funds for principals, the salary of white principals shall be determined by the number of white teachers employed in the white schools, and the salary of colored principals shall be determined by the number of colored teachers employed in the colored schools: Provided, further, that where the schools of a district are under the control of the same district committee, the district principal shall have general supervision of all the schools in the district: Provided, further, that where a white school and a colored school are both under the control of the same district committee and where the principal of the white school is called upon by the district committee to perform certain duties in connection with the operation of the colored school such as aiding in the employment of teachers and in the general supervision of the colored school, the State School Commission and the State Board of Education may in their discretion take such service into consideration in the fixing of the principal's salary and may make a reason- able allowance for same. 1941, c. 267, s. 6. Sec. 14. Local Supplements. The county board of education in any county administrative unit and the school governing board in any city administrative unit, with the approval of the tax levying authorities in said county or city administrative unit and the State School Commission, in order to operate schools of a higher standard than that provided by State support in said administrative unit having a school population of one thousand (1,000) or more, but in no event to provide for a term of more than one hundred eighty (180) days, may supplement the funds from State or county allotments available to said administrative unit: Provided, that before making any levy for supplementing said allotments, an elec- tion shall be held in said administrative unit or district to determine whether there shall be levied a tax to provide said supplemental funds, and to determine the maximum rate which may be levied therefor. Upon the request of the county board of education in a county administrative unit and/or the school governing authorities in a city administrative unit, the tax levying authorities of such unit shall provide for an election to be held under laws governing such elections as set forth in Articles XXIII, XXIV and XVI of Chapter ninety-five of the Consolidated Statutes of 16 Public School Laws North Carolina, Volume three: Provided, that the rate voted shall remain the maximum until revoked or changed by another election: Provided, further, that nothing herein contained shall be construed to abolish any- city administrative unit heretofore established under Chapter four hundred forty-five of Public Laws of one thousand nine hundred thirty-five. Upon a written petition of a majority of the governing board of any district which has voted a supplementary tax, the county board of edu- cation, after approving the petition, shall present the same to the Board of County Commissioners and ask for an election on the question of the enlargement of the boundary lines of any such district so as to include any contiguous territory, and an election in such new territory may be ordered and held under rules governing elections for local taxes as pro- vided in this section: Provided, the local tax rate specified in the petition and submitted to the qualified voters shall be a local tax of the same rate as that voted in the said district to which the territory is to be added. If a majority of the qualified voters in such new territory shall vote in favor of such tax, the new territory phall be and become a part of said district, and the term "local tax of the same rate" herein used shall include, in addition to the usual local tax, any tax levied to meet the interest and sinking fund of any bonds heretofore issued by the district proposed to be enlarged. In case a majority of the qualified voters at the election shall vote in favor of the tax, the district shall be deemed enlarged as so proposed. Sec. 14%. The county board of education in any county administra- tive unit, with the approval of the tax levying authorities in said unit and the State School Commission, in order to provide a twelfth grade, a ninth month, or additional vocational teachers, or for all of said purposes, in- cluding the cost necessary for transportation of students for the said twelfth grade or ninth month, in any district in said county administrative unit, having a school population of one thousand (1,000) or more, but in no event to provide for a term of more than one hundred eighty days, may supplement the funds now available to said district: Provided, that before making any levy for supplementing said allotments, an election shall be held in said district to determine whether there shall be levied a tax to provide said supplemental funds and to determine the maximum rate which may be levied therefor. Before said election can be held in such district, a petition of the district committee setting out the purposes for which said election is to be had and the maximum rate of tax which may be levied shall be approved by the county board of education, the tax levying authorities of said county, and the State School Commission. When such approval is had, then upon the request of the county board of education, the tax levying authorities of such unit shall provide for an election under the laws governing such elections as are set forth for county and city administrative unit supplementary elections in Section fourteen of this Act. Sec. 15. Local Budgets. (a) The request for funds to supplement State school funds, as per- mitted under the above conditions, shall be filed with the tax levying authorities in each county and city administrative unit on or before the fifteenth day of June on forms provided by the State School Commission. Public School Laws 17 The tax levying authorities in such units may approve or disapprove this supplemental budget in whole or in part, and upon approval being given, the same shall be submitted to the State School Commission, which shall have authority to approve or disapprove any object or item contained therein. In the event of approval by the State School Commission, the same shall be shown in detail upon the minutes of said tax levying body, and a special levy shall be made therefor, and the tax receipt shall show upon the face thereof the purpose of said levy. (b) In the same manner and at the same time, each county and/or city administrative unit may file a Capital Outlay budget, subject only to the approval of the tax levying authorities and the State School Com- mission. (c) In the same manner and at the same time, each county and/or city administrative unit shall file a Debt Service budget, which shall in- clude Debt Service budgets of special bond tax districts, as set forth in Section sixteen of this Act, and which shall be subject to the approval of the tax levying authorities in each such unit and the State School Com- mission: Provided, that nothing in this Act shall prevent counties, local taxing districts and/or special charter districts from levying taxes to pro- vide for Debt Service requirements. The tax levying authorities in each of the above named units filing budgets from local funds shall report their action on said budgets on or before the tenth day of July, and the same shall be reported to the State School Commission on or before the twentieth day of July. The action of the State School Commission on all requests for local funds budgets shall be reported to boards of education and/or school governing authori- ties of city administrative units and the tax levying authorities in such units on or before the twentieth day of August. All county-wide Current Expense school funds shall be apportioned to county and city administrative units monthly, and it shall be the duty of the county treasurer to remit such funds monthly as collected to each administra- tive unit located in said county on a per capita enrollment basis. County- wide expense funds shall include all funds for current expenses levied by the Board of County Commissioners in any county to cover items for Current Expense purposes, and including also all fines, forfeitures, penalties, poll and dog taxes and funds for vocational subjects. All county-wide Capital Outlay school funds shall be apportioned to county and city administrative units on the basis of budgets submitted by said units to the county commissioners and for the amounts and purposes approved by said commissioners. Capital Outlay funds so provided for expenditure by the county administrative unit shall be paid out upon warrants drawn by the county board of education, and those provided for expenditure by a city administrative unit shall be paid out upon warrants drawn by the governing board of the city administrative unit: Provided, that funds derived from payments on insurance losses shall be used in the replacement of buildings destroyed, or in the event the buildings are not replaced, said funds shall be used to reduce the indebtedness of the special bond taxing unit to which said payment has been made, or for other capital outlay purposes within said unit. All county-wide Debt Service funds shall be apportioned to county and city administrative units and distributed at the time of collection and when available shall be expended 18 Public School Laws in the same manner as are county-wide Current Expense school funds: Provided, that the payments to any administrative unit shall not exceed the actual needs of said units, including sinking fund requirements. The per capita enrollment basis shall be determined by the State School Com- mission and certified to each administrative unit. Provided, further, that the debt service apportionment between county and city administrative units shall apply only to debt service for capital outlay obligations incurred by counties and cities prior to July 1, 1937, except in those counties where special legislation has been enacted providing for the issuance of school building bonds in behalf of school districts, and special bond tax units. [The provisions of this amendment do not apply to refunding bonds issued for school capital outlay obligations.} 1941, e. 267, s. 7 ; c. 200, ss. 1, 2. Sec. 16. School Indebtedness. If a boundary, territorial district, or unit in which a special bond tax has heretofore been voted or in anyway assumed prior to July first, one thousand nine hundred thirty-three, has been or may be divided or consolidated, and the whole or a portion of which has been or may be otherwise integrated with a new district so established under any reorganization and/or redistricting, such territorial unit, boundary, or district, special taxing or special charter, which has been abolished for school operating purposes, shall remain as a district for the purpose of the levy and collection of the special taxes theretofore voted in any unit, boundary, or district, special taxing or special charter, for the payment of bonds issued and/or other obligations so assumed, the said territorial boundary, district, or unit shall be maintained until all necessary taxes have been levied and collected therein for the payment of such bonds and/or other indebtedness so assumed. Such boundary, unit, or district shall be known and designated as the "Special Bond Tax Unit" of County. All uncollected taxes which have been levied in the respective school districts for the purposes of meeting the operating costs of the schools shall remain as a lien against the property as originally assessed and shall be collectible as are other taxes so levied and, upon collection, shall be made a part of the Debt Service fund of the special bond tax unit, along with such other funds as may accrue to the credit of said unit; and in the event there is no debt service requirement upon such district, all amounts so collected for whatever purpose shall be covered into the county treasury to be used as a part of the county debt service for schools: Provided, that unpaid teacher's vouchers for the year in which the tax was levied shall be a prior lien: Provided, further, that nothing in this Act shall be con- strued as abolishing special taxes voted in any city administrative unit since July first, one thousand nine hundred thirty-three. Sec. 17. The Operating Budget. It shall be the duty of the county board of education in each county and the school governing authorities in each city administrative unit, upon receipt of the tentative allotment of State funds for operating the schools and the approval of all local funds budgets, including supplements to State funds for operating schools of a higher standard, funds for extending the term, funds for debt service, and funds for capital outlay, to prepare an operating budget on forms provided by the State and file the same with the State Superintendent of Public Instruction and the State School Commission on or before the first day of Public School Laws 19 October. Each operating budget shall be checked by the State school authorities to ascertain if it is in accordance with the allotment of State funds and the approval of local funds; and when found to be in accordance with same, shall be the total school budget for said county or city adminis- trative unit. Sec. 18. Bonds. That the State School Commission, subject to the approval of the Local Government Commission, shall determine and pro- vide all bonds necessary for the protection of the State school funds. That the tax levying authorities in each county and city administrative unit, subject to the approval of the Local Government Commission, shall provide such bonds as the State School Commission may require for the protection of county and district school funds. Sec. 19. Provision for the Disbursement of State Funds. The payment of the State fund to the county and city administrative units may be made in monthly installments, at such time and in such amounts as may be practical to meet the needs and necessities of the eight months' school term in the various county and city administrative units: Provided, that prior to the payment of any monthly installment, it shall be the duty of the county board of education or the board of trustees to file with the State Superintendent of Public Instruction and the State School Commis- sion a certified statement of all salaries, together with all other obligations that may be due and payable, said statement to be filed on or before the fifteenth day of each month next preceding the maturity of the obligations. When it shall appear to the State School Commission from said certified statement that any amounts are due and necessary to be paid, such amounts shall be certified to the State Superintendent, who shall draw a requisition on the State Auditor covering the same; and upon receipt of notice from the State Treasurer showing the amount placed to their credit, the duly constituted authorities may issue State warrants in the amount so certified: Provided, that no funds shall be released for payment of salaries of administrative officers of county or city units if any reports required to be filed with the State School authorities are more than thirty days overdue. Sec. 20. How School Funds Shall be Paid Out. The school funds shall be paid out as follows: 1. State School Funds. That school funds shall be released only on warrants drawn on the State Treasurer signed by the chairman and the secretary of the county board of education for county administrative units, and by the chairman and the secretary of the board of trustees for city administrative units, and countersigned by such officer as the county government laws may require. 2. County and District Funds. All county and district funds, from whatever source provided, shall be paid out only on warrants signed by the chairman and secretary of the board of education for counties and the chairman and the secretary of the board of trustees for city administrative units and countersigned by such officer as the county government laws may require: Provided, the countersigning officer shall countersign tvarrants drawn as herein specified when such warrants are within the funds set up to the credit of and are within the oudget amounts appropriated for the 20 Public School Laws particular administrative unit. Upon the basis of budget approval and upon receiving the certificate of per capita enrollment as set out in Section fifteen hereof, the county auditor or accountant shall ascertain and determine the proportion of all taxes levied by the county which shall be apportionable to the county administrative unit and any city administrative unit therein. As taxes are collected within said county, the proportion thereof allocable to the county administrative unit and any city administrative unit in said county shall be set up to the credit of such administrative unit by the county accountant or auditor. All funds due to the county administrative unit set up and ascertained as aforesaid shall be paid out as hereinbefore provided, and all funds due any city administrative unit therein shall be paid out as hereinbefore provided. 3. Records and Reports. The State Superintendent of Public In- struction and State School Commission shall have full power and authority to make rules and regulations to prescribe the manner in which records shall be kept by all county and city administrative units as to the expendi- ture of current expense funds, capital outlay funds, and debt service funds, derived from local sources, and to prescribe for making reports thereof to the State Superintendent of Public Instruction. 1941, c. 267, s. 8. Sec. 21. Audit. The State School Commission, in cooperation with the State Auditor, shall cause to be made an audit of all school funds, State, county, and district; and the cost of said audit shall be borne by each fund audited in proportion to the total funds audited, as determined by the State School Commission. The tax levying authorities for county and city administrative units shall make provision for meeting their proportionate part of the cost of making said audit, as provided in this Act. That copies of said audits shall be filed with the State School Com- mission, the State Auditor, and the State Superintendent of Public In- struction not later than October first after the close of the fiscal year. Sec. 22. Workmen's Compensation and Sick Leave. The provisions of the Workmen's Compensation Act shall be applicable to all school employees, and the State School Commission shall make such arrange- ments as are necessary to carry out the provisions of the Workmen's Compensation Act as are applicable to such employees as are paid from State school funds. Liability of the State for compensation shall be con- fined to school employees paid by the State from State school funds for injuries or death caused by accident arising out of and in the course of their employment in connection with the State operated eight months school term. The State shall be liable for said compensation on the basis of the average weekly wage of such employees as defined in the Work- men's Compensation Act, whether all of said compensation for the eight months school term is paid from State funds or in part supplemented by local funds. The county and city administrative units shall be liable for Workmen's Compensation for school employees whose salaries or wages are paid by such local units from local funds, and such local units shall likewise be liable for Workmen's Compensation of school employees em- ployed in connection with teaching vocational agriculture, home economics, trades and industrial vocational subjects, supported in part by State and Public School Laws 21 Federal funds, which liability shall cover the entire period of service of such employees. Such local units are authorized and empowered to pro- vide insurance to cover such compensation liability and to include the cost of such insurance in their annual budgets. The State School Commission is hereby authorized and empowered, in its discretion, to make provision for sick leave with pay for any teacher or principal not exceeding five days and to promulgate rules and regulations providing for necessary substitutes on account of said sick leave. The pay for a substitute shall not exceed three dollars per day. The provisions of this section shall not apply to any person, firm or corporation making voluntary contributions to schools for any purpose, and such person, firm or corporation shall not be liable for the payment of any sum of money under this Act. Sec. 22 1 / £. Children to be entitled to enrollment in the public schools for the school year one thousand nine hundred thirty-nine-forty, and each year thereafter, must be six years of age on or before October first of the year in which they enroll, and must enroll during the first month of the school year. Sec. 23. Purchase of Equipment and Supplies. It shall be the duty of the county boards of education and/or the governing bodies of city ad- ministrative units to purchase all supplies, equipment and materials in accordance with contracts and/or with the approval of the State Division of Purchase and Contract: Provided, that no contracts shall be made by any county or city administrative unit for purchases unless provision has been made in the budget of such unit to provide payment therefor, or unless surplus funds are on hand to pay for same, and in order to protect the State purchase contracts, it is hereby made the mandatory duty upon the part of the governing authorities of such local units to pay for such pur- chases promptly in accordance with the terms of the contract of purchase. Sec. 23 x / 2 . For the purpose of determining the most economical man- ner and method of heating school buildings, including type of insulation, the school commission in cooperation with State Department of Public Instruction is hereby authorized to conduct experiments in the different types of heating. Sec. 24. School Transportation. The control and management of all facilities for the transportation of public school children shall be vested in the State of North Carolina under the direction and supervision of the State School Commission, which shall have authority to promulgate rules and regulations governing the organization, maintenance, and operation of the school transportation facilities. The tax levying authorities in the various counties of the State are authorized and empowered to provide in the Capital Outlay budget adequate buildings and equipment for the storage and maintenance of all school busses. Provision shall be made for adequate inspection each thirty days of each vehicle used in the transportation of school children, and a record of such inspection shall be filed in the office of the superintendent of the administrative unit. That it shall be the duty of the administrative officer of each administrative unit to require an adequate inspection of each bus at least once each thirty days, the report or reports of which inspection shall be filed with the 22 Public School Laws administrative officers. Every principal, upon being advised of any defect by tbe bus driver, shall cause a report of such defect to be made to this administrative officer immediately, whose duty it shall be to cause such defect to be remedied before such bus can be further operated. The use of school busses shall be limited to the transportation of children to and from school for the regularly organized school day: In cases of sudden illness or injury requiring immediate medical attention of any child or children while attending the public schools, the principal of the school may send the child or children by school bus, if no other vehicle is available, to the nearest doctor or hospital for medical treatment ; provided the expense of such transportation shall be paid from county funds. The State School Commission is authorized and empowered, under rules and regulations to be adopted by said school commission, to permit the use and operation of school busses during the extended term in any ad- ministrative unit; but such administrative unit shall be responsible for the costs of operating such school busses during such extended term and shall be liable for Workmen's Comppnsation in connection therewith: Provided, the School Commission, in its discretion, may effect Workmen's Compensa- tion coverage for all employees paid from local funds; also may extend the provisions of Chapter two hundred forty-five, Public Laws of one thousand nine hundred and thirty-five, to children being transported to and from school for the ninth month, or twelfth grade or both. The provisions of this section shall not apply to any person, firm or corporation making voluntary contributions to schools for any purpose, and such person, firm or corporation shall not be liable for the payment of any sum of money under this Act. The State School Commission is authorized and empowered, under rules and regulations to be adopted by said School Commission, to permit the use and operation of school busses for the transportation of school children on necessary field trips while pursuing the courses of vocational agriculture, home economics, trade and industrial vocational subjects, to and from demon- stration projects carried on in connection therewith ; provided that under no circumstances shall the total round trip mileage for any one trip exceed twenty-five miles nor on any such trip shall a State owned school bus be taken out of the State of North Carolina. The costs of operating such school busses for said purpose, including the liability for workmen's compensation therewith and the employment of drivers of such busses, shall be paid for out of State funds, and the drivers of such busses shall be selected and employed as is provided for the operation of busses for the regularly or- ganized school day under Section twenty-seven of this Act: Provided, further, that the State School Commission shall approve and designate any busses used for the purposes herein set forth. 1941, c. 267, s. 9; c. 315, s. 1 ; c. 214, s. 1. Sec. 25. Bus Routes. In establishing the route to be followed by each school bus operated as a part of the State school transportation system, in all schools where transportation is now or may hereafter be provided, the State School Commission shall, in cooperation with the district principal, unless road or other conditions make it inadvisable, route the busses so as to get within one mile of all children who live more than one and one- half miles from the school to which they are assigned: Provided, that all routes so established shall be subject to the approval of the county board Public School Laws 23 of education, and with a view to the needs of the students to the end that the necessity of students waiting on the road for busses in inclement toeather be eliminated. The State shall not be required to provide transportation for children living within one and one-half miles of the school in which provision for their instruction has been made. All bus routes thus estab- lished shall be filed with the county board of education prior to the opening of school; and in the event any of said routes are disapproved by the county board of education, notice of same shall be filed with the State School Com- mission, and a hearing on such appeal shall be had by said commission within thirty days. 1941, c. 267, s. 10%. Sec. 26. Purchase of New Equipment. It shall be the duty of the tax levying authorities in the various counties, and they are hereby authorized, empowered, and directed to make provision in the Capital Outlay budget for the purchase under State contract of new busses needed to relieve over- crowding and to provide for the transportation of children not transported during the school year one thousand nine hundred thirty-nine. It shall be the duty of the State School Commission to determine the rated capacity of each public school bus transporting children to or from school, and it shall be the duty of the local school authorities to see that no bus is loaded more than twenty-five per cent (25%) above its rated capacity. The county board of education shall determine when busses are overcrowded as specified in this section. The county boards of education shall determine when the busses are overcrowded, and the State shall provide for the operation of all new busses purchased by the counties. It shall be the duty of the State of North Carolina to purchase all school busses used as replacements for old publicly owned busses which were operated by the State during the school year one thousand nine hundred forty, forty-one. It shall be the duty of the State School Commission to promulgate rules and regulations that will insure for the children the greatest possible safety, including a standard signaling device for giving the public due notice that the bus is making a stop. Before purchasing any new school busses, the State School Commis- sion shall cause to be made a thorough study of the most modern materials and construction for insuring the safest equipment possible within the funds available. The State School Commission, in its discretion, may effect fire insurance coverage on the school busses, or act as a self-insurer. 1941, c. 267, ss. 8y 2 , 10. Sec. 27. Bus Drivers. The authority for selecting and employing the drivers of school busses shall be vested in the principal or superintendent of the school at the termination of the route, subject to the approval of the school committeemen or trustees of said school and the county or city superintendent of schools: Provided, that each driver shall be selected with a view to having him located as near the beginning of the truck route as possible; and it shall be lawful to employ student drivers wherever such is deemed advisable. The salary paid each employee in the operation of the school transportation system shall be in accordance with a salary schedule adopted by the State School Commission for that particular type of employee. Sec. 28. Contract Transportation. In counties where school transpor- tation is provided by contract with private operators, the State shall 24 Public School Laws provide funds for operating costs on the standards adopted for publicly owned busses, and it shall be the duty of the tax levying authorities in the various counties to provide in the Capital Outlay budget the additional funds necessary to pay contracts. Sec. 29. Cooperation with Highway and Public Works Commission in Maintenance of Equipment. The State School Commission is hereby authorized to negotiate with the Highway and Public Works Commission in coordinating all facilities for the repair, maintenance, and upkeep of equipment to be used by the State School Commission in the school trans- portation system. In all cases where this is done, the State Highway and Public Works Commission shall be reimbursed in the amount of the actual cost involved for labor and parts to be determined by an itemized state- ment filed with the State School Commission. Sec. 30. Lunch Rooms May Be Provided. In such cases as may be deemed advisable by the trustees or school committee in any school, and where the same may be deemed necessary because of the distance of the said school from places where meals may be easily obtained, it shall be permissible for the said trustees and the said school committees, as a part of the functions of the said public schools, to provide cafeterias and places where meals may be sold, and operate or cause the same to be operated for the convenience of teachers, school officers, and pupils of the said schools. There shall be no personal liability upon the said trustees and school committees, or members thereof, arising out of the operation of the said eating places, and it is understood and declared that the same are carried on and conducted in connection with the public schools, and because of the necessities arising out of the consolidation of the said schools and the inconvenience and interruption of the school day caused by seeking meals elsewhere: Provided, that no part of the appropriation made by the State for the public schools shall be expended for the opera- tion of said cafeterias or eating places, nor shall the provisions of Section twenty-two of this Act apply to the employees of the cafeterias or eating places, except sucb persons as are regularly employed otherwise in the schools. Sec. 31. Miscellaneous Funds. It shall be the duty of the county superintendent of public instruction to examine the records of the county to see that the proceeds from the poll taxes and the dog taxes are correctly accounted for to the school fund each year, and to examine the records of the several courts of the county, including courts of justices of the peace, at least once every three months to see that all fines, forfeitures, and penalties, and any other special funds accruing to the county school fund, are correctly and promptly accounted for to the school fund; and if the superintendent shall find that any such taxes or fines are not correctly and promptly accounted for to the school fund, it shall be his duty to make prompt report thereof to the State School Commission and also to the solicitor of the Superior Court holding the courts in the district. It shall be unlawful for any of the proceeds of poll taxes, dog taxes, fines, forfeitures, and penalties to be used for other than school purposes, and the official responsible for any diversion of such funds to other pur- poses shall be guilty of a misdemeanor and, upon conviction, shall be Public School Laws 25 punishable by fine or imprisonment, in the discretion of the court: Provided, however, that this section shall not be construed as making un- lawful the use of such portions of said funds for other purposes as may be provided by the provisions of this Act. The clear proceeds of poll taxes, dog taxes, fines, forfeitures and penalties shall be accounted for by the officers collecting the same, and no deductions shall be made therefrom for fees or commissions. Any court officer, including justices of the peace, who shall wilfully fail or refuse to account for all poll taxes, dog taxes, fines, forfeitures or penalties coming into the hands of such officer, shall, upon conviction thereof, be guilty of a felony and imprisoned in the State's prison in the discretion of the court, or fined in the discretion of the court, or both. Sec. 32. All Public, Public-Local, or Private Laws and clauses of laws in conflict with this Act, to the extent of such conflict only, are hereby repealed. If any section, part, paragraph, sentence, or clause of this Act shall be declared unconstitutional or invalid, the same shall not affect the validity of any of the remaining parts of this Act. The provisions of this Act shall not be construed as repealing Chapter three hundred three Public Laws of one thousand nine hundred thirty-seven or any part there- of: Provided, further, nothing in this Act shall be so construed as to repeal Chapter two hundred eight of the Public-Local Laws of one thousand nine hundred thirty-seven, as amended by House Bill Number six hundred seventy-five session of one thousand nine hundred thirty-nine. Sec. 33. This Act shall be in full force and effect from and after its ratification. In the General Assembly read three times and ratified, this the 3rd day of April, 1939. 1939, c. 358, as amended by chapters 200, 214, 267, and 315, Public Laws of 1941. AN ACT TO EXEMPT GASOLINE USED IN PUBLIC SCHOOL TRANS- PORTATION FROM ALL GASOLINE TAXES IMPOSED BY THE STATE OF NORTH CAROLINA. The General Assembly of North Carolina do enact: Section 1. Any person, firm or corporation holding a North Carolina State contract for the sale of gasoline to be used in public school transpor- tation in North Carolina shall invoice gasoline so sold and delivered to the county boards of education at the prevailing contract price, less the State tax on gasoline. A copy of such invoice showing the board of education to whom the gasoline is delivered, the kind of gasoline sold, the gallons sold, and the contract price per gallon, shall be submitted to the North Carolina Department of Revenue each month, supported with an official purchase order from the county board or boards of education, which in- voice or invoices and supporting purchase order shall exempt the gasoline purchased by said board or boards of education for use in North Carolina public school transportation from the six cents tax per gallon State gaso- line tax. 26 Public School Laws Sec. 2. The Commissioner of Revenue of North Carolina is hereby- authorized and directed to accept such invoices and supporting purchase orders, duly notarized, in lieu of the six cents per gallon tax imposed by the laws of North Carolina upon said gasoline: Provided, when any author- ized dealer has already paid the State gasoline gallon tax and furnishes the Commissioner of Revenue with proper invoices and supporting pur- chase orders as required in Section one of this Act, then such dealer shall be entitled to a refund by the Commissioner of Revenue of six cents per gallon from the gasoline fund for each gallon so sold and delivered to the county boards of education for use in public school transportation in school busses, service trucks, and gasoline delivery wagons used only for school purposes. Sec. 3. It is the intent and purpose of this Act to relieve gasoline used in the public school system of North Carolina from the six cents gasoline tax now imposed by the State and thereby to that extent reduce the cost of public school transportation. Sec. 4. Any person making a false return or affidavit for the purpose of securing a refund to which he is not entitled under the provisions of this Act shall be guilty of a misdemeanor, and upon conviction thereof shall be fined not exceeding five hundred dollars ($500.00), or imprisoned not exceeding two years, in the discretion of the court. Sec 5. All laws and clauses of laws in conflict with the provisions of this Act are hereby repealed to the extent of the conflict with this Act. Sec 6. This Act shall be in full force and effect from and after July first, one thousand nine hundred and forty-one. In the General Assembly read three times and ratified, this the tenth day of March, 1941. 1941, c. 119. AN ACT TO PERMIT THE STATE SCHOOL COMMISSION TO OPERATE THE SCHOOL BUSES ONE DAY PRIOR TO THE OPENING OF THE PUBLIC SCHOOL TERM FOR THE PURPOSE OF ORGANIZING THE SCHOOL AND PROMOTING THE EFFICIENCY OF THE OPERATION OF THE SAME. The General Assembly of 'North Carolina do enact: Section 1. The State School Commission is hereby empowered, in order to properly organize the public schools of the State, to operate the school buses one day prior to the opening of the regular school term for the purpose of registration of students, organizing classes, distributing textbooks, and such other purposes as will promote the efficient organi- zation and operation of the public schools of the State. The costs of operating the same for said purpose, including the liability for workmen's compensation therewith, shall be paid out of State funds. Sec 2. All laws and clauses of laws in conflict with this Act are hereby repealed. Public School Laws 27 Sec. 3. This Act shall be in full force and effect from and after its ratification. In the General Assembly read three times and ratified, this the eighth day of March, 1941. 1941, c. 101. AN ACT TO PROVIDE COMPENSATION FOR SCHOOL CHILDREN KILLED AND /OR INJURED WHILE RIDING ON A SCHOOL BUS TO AND FROM THE PUBLIC SCHOOLS OF THE STATE: AND TO AUTHORIZE THE STATE SCHOOL COMMISSION TO SET ASIDE CERTAIN FUNDS FOR THAT PURPOSE OUT OF WHICH MEDICAL AND HOSPITAL EXPENSES AND DEATH CLAIMS SHALL BE PAID. The General Assembly of North Carolina do enact: Section 1. That the School Commission of North Carolina, shall, and it is hereby, authorized and directed to set up in its budget for the operation of the public schools of the State, a sum of money which it deems sufficient to pay the claims hereinafter authorized and provided for. Sec 2. That the State School Commission be, and it is hereby author- ized and directed to pay out of said sum provided for this purpose to the parent, guardian, executor, or administrator of any school child, who may be injured and/or whose death results from injuries received while such child is riding on a school bus to and from the public schools of the State, medical, surgical, hospital, and funeral expenses incurred on account of such injuries and/or death of such child in an amount not to exceed the sum of six hundred and no one-hundredths dollars ($600.00). Sec. 3. The right to compensation as authorized under Section two of this Act shall be forever barred, unless a claim be filed with the State School Commission within one year after the accident, and if death results from the accident, unless a claim be filed with the said Commission within one year thereafter. Sec 4. That the State School Commission is hereby authorized and em- powered, under rules and regulations to be promulgated by said School Commission, to approve any claim authorized by this Act, and when such claim is so approved, such action shall be final; and payment made by the School Commission for hospital and medical treatment shall be deducted from the benefits provided in Section two hereof, and said Commission is hereby authorized to pay medical and hospital and funeral bills provided for in this Act, not to exceed, however, the benefits herein provided for. Sec 5. That the claims authorized in Section two of this Act shall be paid by the said School Commission, regardless of whether or not the injury received by said school child shall have been due to the negligence of the driver of the said school bus; provided that whenever there is recovery on account of said accident by the father, mother, guardian, or administrator of such child, against any person, firm, or corporation, the amount expended by the State School Commission hereunder shall con- stitute a paramount lien on any judgment recovered by said parent, 28 Public School Laws guardian, or administrator, and shall be discharged before any money is paid to said parent, guardian, or administrator, on account of said judg- ment. Sec. 6. Nothing in this Act shall be construed to mean that the State shall be liable for sickness, disease, and for personal injuries sustained while not actually riding on the bus to and from the school, and for personal injuries received otherwise than by reason of the operation of such bus. Sec. Qy 2 - That the provisions of this Act shall be, and are hereby made applicable to any school child, who may be injured and/or whose death results from injuries received while such child is riding on a school bus to and from the public schools of the State during the ninth month, or any term of public school additional to the regular eight months school term: Provided, that nothing herein contained shall be construed as imposing any obligation upon the State School Commission to provide funds for this pur- pose. The tax levying authorities of any school district which provides a supplement for the maintenance of a ninth month or additional school term are hereby authorized and directed to set up in their respective budgets a sum of money which is deemed sufficient to pay the claims authorized by this Act, and to pay out of such sum the expenses authorized to be paid in accordance with the provisions of this Act. No person, firm, or corporation making voluntary contributions for an extended term shall be liable on account of any accident or injury. Sec. 7. This Act shall be in full force and effect from and after its ratification. Sec. 8. That all laws and clauses of laws in conflict with this Act are hereby repealed. 1935, c. 245; 1939, c. 267. AN ACT TO PROMOTE SAFETY IN THE TRANSPORTATION OF THE SCHOOL CHILDREN OF NORTH CAROLINA Whereas, there has been an increased number of accidents by the school buses of North Carolina for the past few years, which have resulted in an appalling number of injuries and fatalities of the children of the State, and a great loss of the property of the State; and Whereas, it is desirous that the childhood of North Carolina, and the property of the State be better protected: Now, Therefore, The General Assembly of North Carolina do enact: Section 1. That no person shall drive or operate a school bus over the public roads of North Carolina while the same is occupied by children unless said person shall be fully trained in the operation of motor vehicles, and shall furnish to the superintendent of the schools of the county in which said bus shall be operated, a certificate from the Highway Patrol of North Carolina and the Chief Mechanic in charge of school busses in said county showing that he has been examined by a member of the said Highway Public School Laws 29 Patrol, said Chief Mechanic in charge of school busses in said county, and that he is a fit and competent person to operate or drive a school bus over the public roads of the State. Sec. 2. That it shall be unlawful for any person to operate or drive a school bus loaded with children over the public roads of North Carolina at a greater rate of speed than thirty-five miles per hour. Sec. 3. Any person violating section two of this Act, shall upon con- viction, be fined not more than fifty dollars ($50.00) or imprisoned not more than thirty days. Sec. 4. All laws and clauses of laws in conflict herewith are hereby repealed. Sec. 5. This Act shall be in full force and effect from and after July first, one thousand nine hundred thirty-seven. 1937, c. 397; 1941, c. 21, s. 1. VACANCIES IN OFFICE OF COUNTY BOARD OF EDUCATION 5416. Vacancies in office. All vacancies in the membership of the Board of Education in such counties by death, resignation, or otherwise shall be filled by the action of the County Executive Committee of the political party of the member causing such vacancy until the meeting of the next regular ses- sion of the General Assembly, and then for the residue of the unexpired term by that body. If the vacancy to be filled by the General Assembly in such cases shall have occurred before the primary or convention held in such County, then and in that event, nominations for such vacancies shall be made in the manner hereinbefore set out, and such vacancy shall be filled from the candidates nominated to fill such vacancy by the party primaries or convention of such County. All vacancies that are not filled by the County Executive Committee under the authority herein contained within thirty days from the occurrence of such vacancies shall be filled by appointment by the State Board of Education. (C. S. 5408.) 1923, c. 136, s. 16; 1931, c. 380, ss. 1, 2. AN ACT TO APPOINT CERTAIN MEMBERS OF THE BOARDS OF EDUCATION OF THE RESPECTIVE COUNTIES OF NORTH CARO- LINA, FIX THEIR TERMS OF OFFICE, AND LIMIT COMPENSATION AT STATE EXPENSE. The General Assembly of North Carolina do enact: Section 1. That the hereinafter named persons are hereby appointed members of the County Boards of Education for the several counties in the State as follows, to-wit: Alamance — Dr. A. J. Ellington, for a term of six years. Alexander — E. E. Lackey, for a term of six years. Alleghany — G. N. Evans. Anson — K. M. Hardison, for a term of six years. 30 Public School Laws Ashe — J. W. Gambill, W. B. Oliver, J. O. Blevins. Avery — E. C. Guy, J. M. Dearmin, Carl Wiseman. Beaufort — Charles F. Cowell, S. B. Etheridge, Dan M. Windley, Dr. W. T. Ralph, Ottis C. Barr. Bertie — Bladen — Homer L. Tatum, S. S. Hutchinson, J. Neal Clark, each for a term of four years. Brunswick — Gilbert T. Reid. Buncombe — John M. James, Worth McKinney, A. O. Mooneyham, B. E. Morgan, Glen C. West. Burke — Cabarrus — H. E. Cline, R. L. Hartsell, each for a term of six years; Boyd Biggers. Caldwell — V. D. Guire, Davis Tuttle, M. H. Jones, John A. Frazier, E. L. Steele. Camden — W. I. Sawyer, B. H. Cartwright, L. S. Walston, each for a term of two years. All laws and clauses of laws heretofore enacted with respect to the appointment of the Board of Education of Camden County and the terms of the members of said board be and the same are hereby repealed. Carteret — Charles V. Webb, for a term of six years. Caswell — J. B. Turner, for a term of six years; V. M. Stephens, for a term of four years; O. A. Powell. Catawba — Weaver Man, Richard Boyd, James Howard, Enlow Youder, Ralph Sigmon, John F. Carpenter. Chatham — John R. Tally, for a term of six years; C. A. Snipes, for a term of four years. Cherokee — J. L. Hall, Lawson Lunsford, Aude Sudderth, B. B. Palmer, J. T. Hayes, John Christy, Mrs. G. W. Cover, Sr. Chowan — Z. T. Evans, W. B. Shepard, T. L. Ward, Fan Lamb, Haughton Wood, S. E. Morris, L. W. Belch. Clay — Perry Tipton, for a term of six years; George Jarrett. Cleveland — O. F. Austell, C. D. Forney, Thurman Hamrick, J. L. Hord, Sr., R. L. Plonk. Columbus — R. J. Lamb, A. L. Griffin, E. W. Fonvielle, R. R. Hinson, R. G. Burns. Craven — C. A. Seifert, J. H. West, R. L. Sermons, George W. DeBruhl, J. L. Peterson, J. H. Elliott, Fred H. Whitehurst. Cumberland — Dr. A. S. Cromartie, for a term of six years. Currituck — I. Tunis Corbell, for a term of six years. Dare — Lennon W. Hooper, for a term of four years; E. P. White, J. Hubert Daniels. Davidson — Ralph H. Wilson, Frank L. Mock, P. L. Feezor, each for a term of four years; Roy Lohr. Davie — T. C. Pegram, Mrs. Nannie R. Hayes, G. N. Ward. Duplin — Chesley Williams, for a term of six years. Durham — J. M. Cheek, E. S. Booth, E. L. Tilley, T. O. Sorrell, Joseph W. Spransey. Edgecombe — M. P. Edwards, S. R. Jenkins, George C. Phillips. Forsyth — Frank A. Stith, Smith Hagaman, L. A. Reynolds. Franklin — J. D. Morris, Mrs. D. T. Fuller, each for a term of six years. Public School Laws 31 Gaston — M. A. Stroup, J. Milton Craig, H. B. Gaston, L. D. Gribble, E. J. Rhyne, F. A. Whiteside. Gates — R. E. Williams, H. F. Parker, Mrs. Marion Nixon. Graham — Roy D. Millsaps, Patton Phillips, each for a term of six years; W. D. Walker, Ray Parsons, each for a term of four years; Charlie Rogers, J. B. Walters. Granville — B. T. Strother, E. G. Hobgood, each for a term of six years. Greene — Ed S. Taylor, L. C. Edwards, R. P. Land, W. J. Carraway, A. C. Oakes. Guilford — H. A. Millis, Sidney J. Stern, each for a term of six years. Halifax — R. L. Applewhite, A. G. Willcox, R. O. Rives, Mrs. Anna Kitchin Josey, Mrs. J. T. Thomason, each for a term of two years. Harnett — Mack M. Jernigan, J. C. Senter, Fred S. Thomas. Haywood — Homer V. Cagle, for a term of six years; R. T. Messer, for a term of four years; John Best. Henderson — F. E. Osborne, for a term of six years; G. O. Morgan, for a term of four years; B. B. Massagee. Hertford — George T. Underwood, Thomas N. Charles, Ralph C. Mason. Hoke — A. W. Wood, Carl Riley, A. D. McPhaul, W. M. Monroe, D. B. McFadyen. Hyde — N. Forrest Sears, James W. Miller, George M. Cuthrell. Iredell — S. H. Houston, W. C. Thompson, H. A. Gill. Jackson — Charlie Smith, John Hooper, John Deitz, Hut Middleton, D. H. Stevens. Johnston — C. G. Holt, P. B. Chamblee, each for a term of six years. Jones — E. M. Philyaw, for a term of six years; C. J. Banks, for a term of four years; T. F. Lowery. Lee — J. A. Overton, for a term of six years. Lenoir — Robert S. Parker, W. B. Becton, H. L. Sutton, E. C. Taylor, Frank P. White. Lincoln — Macon — G. G. Moore, J. E. Cabe, J. Frank Browning, E. E. Crawford, J. R. Phillips. Madison — W. T. Moore, E. Y. Ponder, J. Clyde Brown, each for a term of four years, and they shall constitute the Board of Education of Madison County, and all laws and clauses of laws in conflict herewith are hereby repealed in so far as the same relate to Madison County. Martin — George C. Griffin, J. W. Eubanks, Leslie Hardison, each for a term of four years. McDowell — J. B. Johnson, for a term of six years. Mecklenburg — W. B. McClintock, R. G. Eubanks, B. D. Funderburk, Charles L. Barnett, W. E. Potts. Mitchell — Harper Wilson, for a term of six years; Maloy Griffith, for a term of four years; N. B. Woody. Montgomery — Edgar Maness, for a term of six years. Moore — J. W. Graham, W. E. Kelly, John F. Taylor, L. B. McKeithan, D. D. McCrimmon. Nash — G. L. Jones, G. E. Beal, John W. Roberson. New Hanover — Dr. J. T. Hoggard, L. T. Landen, J. C. Roe, John A. Marshall, Mrs. C. L. Meister. 32 Public School Laws Northampton — L. F. Bradley, J. A. Shaw, J. Wesley Parker, Jr., W. Harry Stephenson, Ben F. Ricks, C. G. Parker, J. G. Madry. Onslow — W. L. P. Jarman, Fred Parker, I. T. Rawls, Harry B. Moore, W. L. Ketchum, each for a term of two years. All laws and clauses of laws heretofore enacted with respect to the appointment of the Board of Education of Onslow County and the terms of the members of said board be and the same are hereby repealed. Orange — M. W. Durham, J. S. Compton, C. W. Stanford. Pamlico — J. A. Tingle, Jr., Rowland Styron, M. D. Powers, Preston Spruill, Jarvis Brinson. Pasquotank — Dennis S. Morgan, Jarvis Scott, each for a term of two years; Haywood Brite, Buxton White, each for a term of four years; Mrs. P. F. Walston. Pender — D. J. Farrior, C. R. Rogers, J. D. Thompson. Perquimans — S. M. Long, W. E. Dail, D. L. Barber, each for a term of four years. Person — E. E. Bradsher, B. G. Crumpton, R. G. Cole, C. T. Hall, W. R. Wilkerson. Pitt — W. J. Smith, Jr., R. H. McLawhon, each for a term of six years. Polk — John M. Williams, Marcus L. Feagan, James P. Edgerton, A. G. Miller, W. D. Ledbetter. Randolph — Henry L. Ingram, D. J. Boyles, Charles M. Kennedy, each for a term of four years. Richmond — J. E. Covington, W. R. Land, each for a term of six years; Dr. W. H. Parsons, for a term of four years. Robeson — E. T. Lewis, Isham Pittman, R. P. Edwards, Dr. L. J. Moore, J. L. Duncan, A. B. McRae, J. R. Nance, L. E. Hughes. Rockingham— E. S. Powell, C. P. Wall, J. L. Roberts, T. J. Garret, L. W. Matthews. Rowan — R. L. Lyerly, J. F. Link, each for a term of six years. Rutherford — J. T. Harris, six years. Sampson — B. E. Jackson, W. E. Peterson, John C. Warren, J. C. Butler, J. Hamp Lewis. Scotland — T. L. Henley, James A. Buie, Edwin Morgan, each for a term of four years. Stanly — Franklin H. Shinn, for a term of six years. Stokes — J. Van Tuttle, for a term of six years; P. O. Frye, for a term of four years; Dr. G. E. Stone. Surry — g. C. Hauser, G. W. Scott, P. N. Taylor, W. T. White, C. A. McNeill. Swain — S. W. Black, W. T. Jenkins, Mrs. Serah Martin, Bob Breedlove, Sidney Queen. Transylvania — T. E. Reed, Dewey Winchester, Mrs. J. K. Mills. Tyrrell — E. R. Davenport, B. Frank Alexander, Robert L. Spencer. Union — B. Ward Laney, H. Grady Hawfield, T. L. Price, R. P. Stegall, V. A. Moore. Vance — T. B. Parham, Jr., for a term of six years; John D. Rose, for a term of four years. Wake — Dr. N. Y. Gulley, for a term of six years; C. V. Whitley, for a term of four years. Public School Laws 33 Warren — District Number one — J. E. Rooker, Jr.; District Number two — J. J. Nicholson; District Number three — Harry W. Walker; District Number four — Romeo Powell; and District Number five — A. S. Bugg. Washington — C. N. Davenport, Jr., for a term of six years; Walter H. Paramore, for a term of four years. Watauga — J. B. Horton, Clyde Perry, each for a term of four years; Collis Green, Dr. W. A. Deaton, Raleigh Cottrell, each for a term of two years. All laws and clauses of laws heretofore enacted with respect to the appointment of the Board of Education of Watauga County and the terms of the members of said board be and the same are hereby repealed. Wayne — Luby R. Jones, for a term of six years; R. L. Cox, for a term of four years. Wilkes — C. O. McNeill, for a term of six years. Wilson — Doane Herring, for a term of six years. Yadkin — Paul P. David, O. E. Boles, C. C. Wallace. Yancey — W. S. Edwards, Welzie B. Robinson, Alphonso P. Honeycutt, each for a term of two years. All laws and clauses of laws heretofore enacted with respect to the appointment of the Board of Education of Yancey County and the terms of the members of said board be and the same are hereby repealed. Sec. 2. The members of the several county boards of education ap- pointed by this Act shall qualify by taking the oath of office on or before the first Monday in April, one thousand nine hundred and forty-one, and shall, unless otherwise herein provided, hold office for a term of two years from and after the first Monday in April, one thousand nine hundred and forty-one, and until their successors are elected and qualified, and, together with the members of the board of education of the several counties whose terms will not expire on the first Monday in April, one thousand nine hundred and forty-one, shall constitute the board of edu- cation of the respective counties. Sec. 3. That the per diem and mileage of not exceeding five members of the county board of education of the several counties of the State shall be borne out of the State School Fund; for any number in excess of five, out of the county school fund. Sec. 4. That this Act shall be in force and effect from and after the date of its ratification. In the General Assembly read three times and ratified, this the fifteenth day of March, 1941. 1941, c. 380. AN ACT TO PROVIDE FOR THE EXTENSION OF THE PUBLIC SCHOOL SYSTEM TO EMBRACE TWELVE GRADES IN THOSE SCHOOL DISTRICTS REQUESTING THE SAME. The General Assembly of North Carolina do enact: Section 1. That upon the request of the county board of education or the board of trustees of a city administrative unit, the State School Com- mission shall provide for the operation of a school system to embrace twelve grades in accordance with such plans as may be promulgated by 34 Public School Laws the State Superintendent of Public Instruction in any high school district for which such request is made at the time the organization statement is submitted. Sec. 2. That when the request for the extension of the system of the public school to embrace twelve grades is submitted as provided in Section one of this Act, the cost of the same shall be paid from the appropriation made for the operation of the State eight months' school term in the same manner and on the same standards, subject to the provisions of this Act, as provided in the "School Machinery Act". Sec. 3. That the State Superintendent of Public Instruction and the State School Commission shall provide the necessary blanks and forms for requesting an extension of the public school system to embrace twelve grades as herein provided, in the organization statements to be submitted by the several administrative units of the State in preparation for the school term of one thousand nine hundred and forty-two - forty-three, and annually thereafter, and the State School Commission shall allot teachers for the school year one thousand nine hundred and forty-two - forty-three for any district heretofore operating a school program embracing twelve grades upon the basis of attendance for the preceding year: Provided, that for any district requesting to operate for the first time a system em- bracing twelve grades the allotment of teachers shall be based on a fair and equitable estimate of the prospective increase in attendance, as sub- mitted by the requesting unit, and the average attendance for the pre- ceding year. Sec. 2>y 2 . That the appropriation made available for carrying out the provisions of this Act for the school year one thousand nine hundred and forty-one - forty-two shall be used for the expansion of the public school curriculum to embrace twelve grades under rules to be promulgated by the State Superintendent of Public Instruction and the State School Com- mission, in order that the cost of the twelfth grade may be assumed for the year one thousand nine hundred and forty-two - forty-three as pro- vided by Section three of this Act. Sec. 4. All laws and clauses of laws in conflict with this Act, to the extent of such conflict only, are hereby repealed. Sec. 5. This Act shall be in full force and effect from and after July first, one thousand nine hundred and forty-one. In the General Assembly read three times and ratified, this the thirteenth day of March, 1941. 1941, c. 158. AN ACT TO AMEND THE CONSTITUTION PROVIDING FOR THE ORGANIZATION OP THE STATE BOARD OF EDUCATION AND THE POWERS AND DUTIES OF THE SAME. The General Assembly of North Carolina do enact: Section 1. That Article IX, Sections eight and nine, of the Constitution of North Carolina be amended by substituting for the said sections the following: Public School Laws 35 "Sec. 8. State Board of Education. The general supervision and ad- ministration of the free public school system, and of the educational funds provided for the support thereof, shall, from and after the first day of April, one thousand nine hundred and forty-three, be vested in a State Board of Education to consist of the Lieutenant Governor, State Treas- urer, the Superintendent of Public Instruction, and one member from each Congressional District to be appointed by the Governor. The State Superintendent of Public Instruction shall have general supervision of the public schools and shall be secretary of the board. There shall be a comptroller appointed by the board, subject to the approval of the Governor as director of the Budget, who shall serve at the will of the board and who, under the direction of the board, shall have supervision and management of the fiscal affairs of the board. The appointive mem- bers of the State Board of Education shall be subject to confirmation by the General Assembly in joint session. A majority of the members of said board shall be persons of training and experience in business and finance, who shall not be connected with the teaching profession or any educational administration of the State. The first appointments under this section shall be members from odd numbered Congressional Districts for two years, and members from even numbered Congressional Districts for four years and, thereafter, all appointments shall be made for a term of four years. All appointments to fill vacancies shall be made by the Governor for the unexpired term, which appointments shall not be subject to confirmation. The board shall elect a chairman and vice-chairman. A majority of the board shall constitute a quorum for the transaction of business. The per diem and expenses of the appointive members of the board shall be provided by the General Assembly." Sec. 2. That Article IX, Sections ten, eleven, twelve and thirteen, of the Constitution of North Carolina, be amended by substituting thereof one section, to be designated as Section nine, which shall be as follows: "Sec. 9. Powers and Duties of the Board. The State Board of Edu- cation shall succeed to all the powers and trusts of the President and Directors of the Literary Fund of North Carolina and the State Board of Education as heretofore constituted. The State Board of Education shall have power to divide the State into a convenient number of school dis- tricts; to regulate the grade, salary and qualifications of teachers; to provide for the selection and adoption of the text books to be used in the public schools; to apportion and equalize the public school funds over the State; and generally to supervise and administer the free public school system of the State and make all needful rules and regulations in re- lation thereto. All the powers enumerated in this section shall be exer- cised in conformity with this Constitution and subject to such laws as may be enacted from time to time by the General Assembly." Sec 3. That Sections fourteen and fifteen of Article IX of the Con- stitution of North Carolina shall be changed to Sections ten and eleven of Article IX of the Constitution of North Carolina. Sec 4. That Sections one, two and three of this Act shall be sub- mitted at the next general election of the qualified voters in the State, in 36 Public School Laws the same way and manner, and under the same rules and regulations as provided in the laws governing general elections in this State. Sec. 5. That electors favoring the adoption of the amendments in Sections one, two and three of this Act shall vote ballots, on which shall be printed or written the words "For State Board of Education Amend- ments", and those opposed shall vote ballots, on which shall be printed or written the words "Against State Board of Education Amendments". Sec. 6. That the election upon these amendments shall be conducted in the same manner and under the same rules and regulations as provided by the laws governing general elections, and if a majority of the votes cast be in favor of these amendments, it shall be the duty of the Governor of the State to certify the amendments under the Seal of the State to the Secretary of State, who shall enroll said amendments so certified among the permanent records of his office, and the amendments so certified, and every part thereof, shall be in force from and after the date of such certification. Sec. 7. That all laws and clauses of laws in conflict with this Act are hereby repealed. Sec. 8. That this Act shall be in full force and effect from and after its ratification. In the General Assembly read three times and ratified, this the thir- teenth day of March, 1941. 1941, c. 151. AN ACT TO PROVIDE EDUCATIONAL ADVANTAGES IN STATE INSTI- TUTIONS TO WORLD WAR ORPHANS. The General Assembly of North Carolina do enact: Section 1. That any child who has been a resident of North Carolina for two years, and whose father was killed in action or died from wounds or other causes while a member of the armed forces of the United States between April sixth, one thousand nine hundred seventeen, the date of the declaration of war, and July second, one thousand nine hundred twenty- one, the legal termination thereof, or any child whose father was a member of the armed forces of the United States of America during the aforesaid period and who has died as the direct result of injuries, wounds or other illness contracted during said period of service, shall be entitled to and granted a scholarship of free tuition in any of the State's educational insti- tutions. This scholarship shall not extend for a longer period than four academic years. That in addition to the scholarship of free tuition above provided, there shall also be granted to any child needing financial assistance who is em- braced within the classification covered by this section, free room rent and board in any of the State's educational institutions which provide rooms and eating halls operated by the institution, and such other items and insti- tutional services as are embraced within the so-called institutional matricula- tion fees and other special fees and charges required to be paid as a condition. to remaining in said institution and pursuing the course of study selected^ Public School Laws 37 That all applicants desiring to share the benefits of this paragraph and who are qualified to meet the entrance requirements shall submit, to the educa- tional institution they desire to enter, a certificate of financial need duly executed by Commanding Officer of American Legion Post located within same county as applicant and by the Clerk of the Superior Court of said county. If no Legion Post is located in said county, then the certificate may be signed by Commanding Officer of nearest American Legion Post. That said applicant shall also furnish statement from United States Veterans Administration showing that the applicant comes within the class designated as war orphans and as herein described: Provided, that all the benefits provided for in this Act shall also apply to any child whose father was a member of the armed forces of the United States of America during the aforesaid period and who is now living but due to illness contracted since July second, one thousand nine hundred and twenty-one, has been certified by the United States Yeterans Administration as totally and per- manently disabled but who draws no compensation from the United States Government other than his insurance and hospitalization benefits. Sec. 2. That any State educational institution furnishing room and board and other items and services as aforesaid, to any child or children as provided in this Act, may submit a statement showing the amount of such room and board to the Director of the State Budget, and after checking the correctness of the amounts charged the Director of the Budget shall submit such statements to the Governor and Council of State for payment from the emergency and contingent fund of the State. Sec. 3. That all laws and clauses of laws in conflict with the provisions of this Act are hereby repealed. Sec. 4. That this Act shall be in full force and effect from and after its ratification. 1937, c. 242 ; 1939, cc. 54, 165 : 1941, c. 154, s. 1 ; 1941, c. 239, s. 1. See below for additional amendment. AN ACT TO AMEND SENATE BILL NUMBER ONE HUNDRED AND THIRTY-THREE, CHAPTER TWO HUNDRED AND FORTY-TWO, PUBLIC LAWS OF ONE THOUSAND NINE HUNDRED AND THIRTY- SEVEN, IN REGARD TO WORLD WAR ORPHANS. The General Assembly of North Carolina do enact: Section 1. That the benefits of the provisions of Chapter two hundred and forty-two of the Public Laws of one thousand nine hundred and thirty-seven, as amended, shall be extended to and may be availed of by any child whose father was a resident of the State of North Carolina at the time said father entered the armed forces of the United States and whose father was, prior to his death, or is at the time the benefits of this Act are sought to be availed of, suffering from a service connected dis- ability of thirty per cent or more as rated by the United States Veterans Administration; provided, that such educational benefits to such children of partially disabled veterans shall be limited to not more than five chil- dren in any one school year and; provided further, that if more than five 38 Public School Laws children of such partially disabled veterans apply for the benefits of this Act in any one school year the State Superintendent of Public Instruction shall designate the five children who shall receive such benefits. Sec. 2. That this Act shall be in force from and after its ratification. In the General Assembly read three times and ratified, this the 15th day of March, 1941. 1941, c. 302. AN ACT TO PROVIDE FOR THE ISSUANCE OF SCHOOL DISTRICT REFUNDING AND FUNDING BONDS. The General Assembly of North Carolina do enact: Section 1. As used in this Act the term "School District" shall be deemed to include each special school taxing district, local tax district and special charter district by which or on behalf of which bonds have hereto- fore been issued and are now outstanding. Sec. 2. Notwithstanding the provisions of any law heretofore enacted or enacted hereafter at the present regular session of the General Assembly which affect the continued existence of school districts or the levy of taxes therein for the payment of bonds, each such school district shall continue in existence with the boundaries heretofore established until all bonds thereof now outstanding or bonds issued to refund the same, together with interest thereon, shall be paid. Sec. 3. The Board of Commissioners of the county in which any such school district is located is hereby authorized to issue bonds at one time or from time to time for the purpose of refunding or funding the principal or interest of any bonds of such school district then outstanding. Such refunding or funding bonds shall be issued in the name of the school district and they may be sold or delivered in exchange for or upon the extinguishment of the obligations or indebtedness refunded or funded. Except as otherwise provided in this Act, such refunding and funding bonds shall be issued in accordance with the provisions of Chapter two hundred and fifty-seven of the Public Laws of one thousand nine hun- dred and thirty-three, and the Local Government Act and Acts amendatory thereof and supplemental thereto. The tax levying body or bodies author- ized by law to levy taxes for the payment of the bonds, the principal or interest of which shall be refunded or funded shall levy annually a special tax on all taxable property in such school district sufficient to pay the principal and interest of said refunding or funding bonds as the same become due. Sec. 3A. In case the governing body of any city or town is the body authorized by law to levy taxes for the payment of the bonds of such district, whether the territory embraced in such district lies wholly or partly within the corporate limits of such city or town, such governing body of such city or town is hereby authorized to issue bonds at one time or from time to time for the purpose of refunding or funding the principal or interest of any bonds then outstanding which were issued by or on behalf of such school Public School Laws 39 district. Except as otherwise provided in this Act, such refunding and funding bonds shall be issued in accordance with the provisions of the Municipal Finance Act, as amended, relating to the issuance of refunding and funding bonds under that Act, and the provisions of the Local Government Act and acts amendatory thereof and supplemental thereto, except in the following respects : (a) The bonds shall be issued in the name and on behalf of the school district by the governing body of such city or town. (b) It shall not be necessary to include in the ordinance authorizing the bonds, or in the notice required to be published after the passage of the ordi- nance, any statement concerning the filing of a debt statement, and, as ap- plied to said bonds, sections two thousand nine hundred and thirty-eight and two thousand nine hundred and forty-three of the Municipal Finance Act, as amended, shall be read and understood as if they contained no requirements in respect to such matters. (c) The governing body of such city or town shall annually levy and col- lect a tax ad valorem upon all the taxable property in such school district sufficient to pay the principal and interest of such refunding or funding bonds as the same become due. Sec. 4. All laws and clauses of laws in conflict with the provisions of this Act are hereby repealed. Sec. 5. This Act shall be in full force and effect from and after its ratification. 1935, c. 450; 1937, c. 126; 1941, c. 148, s. 1. AN ACT TO AUTHORIZE THE TRANSFER OF SCHOOL DISTRICT SINKING FUNDS TO COUNTY TREASURERS. The General Assembly of North Carolina do enact: Section 1. That in all cases in which the bonds of special school dis- tricts have been or may hereafter be assumed by the county in which such district is located, all taxes levied and collected for the purpose of paying the interest upon said bonds and creating a sinking fund for the retire- ment of said bonds, shall be paid to the County Treasurer by the Sheriff or Tax Collector. Sec 2. That if a uniform debt service tax is levied and collected by the county in which school district bonds are now outstanding and have been assumed by the county, all of said tax so levied and collected shall be paid to the County Treasurer and the County Treasurer shall allocate to each issue of school district bonds its proportionate part of the tax so levied and collected each year. Sec. 3. That in all cases where school district bonds have been as- sumed or may hereafter be assumed by the county in which district is located any and all moneys and securities held by the Treasurer, Trustee or Committee of such district or Sinking Fund Commissioner, is authorized 40 Public School Laws to transfer any and all moneys and securities belonging to such sinking fund account to the County Treasurer of such county and upon the transfer of such funds and securities and a proper accounting therefor such District Treasurer, Trustee, Committee or Sinking Fund Commissioner shall be discharged from further responsibility for the administration of and ac- counting for such sinking funds. Sec. 4. This Act shall not apply to Richmond County. Sec. 5. That this Act shall be in full force and effect from and after its ratification. 1935, c. 242. AN ACT TO PROMOTE FURTHER EFFICIENCY IN THE PUBLIC SCHOOLS. Whereas, many selling and advertising campaigns are being promoted through the public schools of North Carolina; and Whereas, undue pressure is brought to bear upon both teachers and pu- pils; and Whereas, such practices tend to disrupt and commercialize the work of the schools; Now, Therefore; The General Assembly of North Carolina do enact: Section 1. No person, agent, representative or salesman shall solicit or attempt to sell or explain any article of property or proposition to any teacher or pupil of any public school on the school grounds or during the school day without having first secured written permission and consent of the superintendent, principal or person actually in charge of the school and responsible for it. Sec. 2. Any person violating the provisions of this Act shall be guilty of a misdemeanor and shall be fined or imprisoned in the discretion of the Court. Sec. 3. All laws and clauses of laws in conflict with the provisions of this Act are hereby repealed. Sec. 4. This Act shall be in force from and after its ratification. 1933, c. 220. AN ACT TO PROVIDE FOR COMPETITIVE BIDDING FOR CONSTRUC- TION OR REPAIR WORK OR FOR THE PURCHASE OF APPARATUS, SUPPLIES, MATERIALS OR EQUDPMENT BY THE STATE OF NORTH CAROLINA OR THE SUB-DIVISIONS THEREOF. The General Assembly of North Carolina do enact: Section 1. That no construction or repair work, or purchase of appa- ratus, supplies, materials or equipment requiring the expenditure of public money, the estimated cost of which equals or exceeds one thousand ($1,000.00) dollars, except in cases of special emergency involving the Public School Laws 41 health and safety of the people or their property, Provided that nothing in this section shall operate so as to require any public agency to enter into a contract that will prevent the use of unemployment relief labor paid for in whole or in part by appropriations or funds furnished by the State or Federal government, shall be performed or contract awarded by any board or governing body of the State or sub-divisions thereof, unless proposals shall have been invited by advertisement at least one week before the time specified for opening of said proposals in a newspaper having circulation in the State of North Carolina. Such advertisement shall state the time and place where plans and specifications of proposed work or complete description of apparatus, supplies, materials or equipment may be had, and the time and place for opening the proposals, and shall reserve to said board or governing body the right to reject any or all such proposals. Proposals shall not be rejected for the purpose of evading the provisions of this act and no board or governing body of the State or sub-division thereof shall assume responsibility for construction or purchase contracts or guarantee the payments of labor or materials therefor. All proposals shall be opened in public and shall be recorded on the minutes of the board or governing body and the award shall be made to the lowest responsible bidder, taking into consideration quality and the time specified in the proposals for the performance of the contract. Each proposal shall be accompanied with a deposit to the board or governing body of cash or a certified check on some bank or trust company authorized to do business under the laws of the State of North Carolina in an amount equal to not less than two per centum of the proposal; said deposit to be retained in the event of failure to execute the contract within ten days after the award, or to give satisfactory security as required herein. All contracts required herein shall be executed in writing, and where the amount in- volved is one thousand ($1,000.00) dollars or more, the board or govern- ing body shall require the person, firm or corporation to whom the award of contract is made to furnish bond in some surety company authorized to do business in the State, or require a deposit of money, certified check or government securities for the full amount of said contract for the faithful performance of the terms of said contract; and no such contract shall be altered except by written agreement of the contractor, the sureties on his bond and the board or governing body. Such surety bond or securities required herein shall be deposited with the treasurer of the branch of the government for which the work is to be performed until the contract has been carried out in all respects. Sec. 2. In cases where the board or governing body may furnish con- vict or other labor to the contractor, manufacturer or others entering into contracts for the performance of construction work, installation of appa- ratus, supplies, materials or equipment, the specifications covering such projects shall carry full information as to what wages shall be paid for such labor or the amount of allowance for same. Sec. 3. That no bill or contract shall be divided for the purpose of evading the provisions of this act. Sec. 3-A. That this act shall not apply to the State Highway and Prison Department of the State of North Carolina. 42 Public School Laws Sec. 4. All laws and clauses of laws in conflict with the provisions of this Act are hereby repealed. Sec. 5. This Act shall be in force and effect from and after its rati- fication. 1933, c. 400. AN ACT TO REPEAL AN ACT "TO PROVIDE FOR COMPETITIVE BIDDING FOR CONSTRUCTION OR REPAIR WORK OR FOR THE PURCHASE OF APPARATUS, SUPPLIES, MATERIALS OR EQUIP- MENT BY THE STATE OF NORTH CAROLINA OR THE SUB- DIVISIONS THEREOF," ENROLLED AND RATIFIED MAY 9, 1933. The General Assembly of North Carolina do enact: Section 1. That the Act entitled "An Act to provide for competitive bidding for construction or repair work or for the purchase of apparatus, supplies, materials or equipment by the State of North Carolina or the sub-divisions thereof," enrolled and ratified May 9, 1933, be and the same is hereby repealed, in so far as same affects governmental agencies of sub- divisions of the State of North Carolina doing or performing by or through its or their duly elected officers or agents work for such agency up to and including an amount not to exceed five thousand ($5,000.00) dollars. Sec. 2. That all laws and clauses of laws in conflict with the provisions of this Act are hereby repealed. Sec. 3. This Act shall be in full force and effect from and after its ratification. 1933, c. 552. THE ERECTION OF SCHOOLHOUSES Sec. 60. The Erection of Schoolhouses. The building of all new school- houses and the repairing of all old schoolhouses over which the County Board of Education has jurisdiction, shall be under the control and direction of and by contract with the county board of education, provided however, that in the building of all new schoolhouses and the repairing of all old schoolhouses which may be located in a special charter district (as such district is defined by sub-section three of section three of chapter one hundred thirty-six of the Public Laws of one thousand nine hundred and twenty- three), the building of such new schoolhouses and the repairing of such old schoolhouses shall be under the control and direction of and by contract with the Board of Education or the Board of Trustees having jurisdiction over said special charter district. But the board shall not be authorized to invest any money in any new house that is not built in accordance with plans ap- proved by the State Superintendent, nor for more money than is made available for its erection. All contracts for buildings shall be in writing, and all buildings shall be inspected, received, and approved by the county superintendent of public instruction or by the Superintendent of Schools where such school buildings are located in a special charter district before full payment is made therefor: Provided, this section shall not prohibit Public School Laws 43 county boards of education and boards of trustees from having the janitor or any regular employee to repair the buildings. From any moneys loaned by the State to any one of the several counties for the erection, repair or equipment of school buildings, teacherages and dormitories, the State Board of Education, under such rules as it may deem advisable not inconsistent with the provisions of this article, may retain an amount not to exceed fifteen per cent of the said loan until such completed buildings, erected or repaired, in whole or in part from such loan funds, shall have been approved by such agent as the State Board of Education may designate: Provided, that upon the proper approval of the completed building the State Treasurer, upon requisition of the State Superintendent of Public Instruction, authorized and directed by the State Board of Education, shall pay to the treasurer of the county the re- maining part of said loan, together with interest from the date of the loan at a rate not less than three per cent on monthly balances. 1923, c. 136, s. 60; 1925, c. 221; 1937, c. 353. AN ACT PRESCRIBING THE MANNER OF ADVERTISEMENT AND SALE OF SCHOOL PROPERTY. The General Assembly of North Carolina do enact: Section 1. That section sixty-two of chapter one hundred and thirty- six of the Public Laws of North Carolina, Session 1923, be and the same is hereby repealed. Sec. 2. That when in the opinion of the Board, any schoolhouse, school- house site or other public school property has become unnecessary for public school purposes, it may sell the same at public auction after adver- tising the said property for the period of time and in like manner as to places and publication in newspapers as now prescribed for sales of real estate under deeds of trust. Provided further, that the sale shall be re- ported to the office of the Clerk of the Superior Court and remain open for ten (10) days for an increase bid, and if the said bid is increased the property shall be re-advertised in the manner as re-sales under deeds of trusts, and if there is no raised or increased bid within ten (10) days, the Chairman and Secretary of the Board shall execute a deed to the pur- chaser, and the proceeds shall be paid to the Treasurer of the County School Fund. Sec. 2(a). That after the sale of school property, as herein provided for, has been had and in the opinion of the County Board of Education the amount offered for the property, either at the first or any subsequent sale, is inade- quate, then, upon a finding of such fact by the County Board of Education, the said board is authorized to reject such bid and to sell the property at private sale, provided the price offered is in excess of that offered at such public sale. Sec 3. All laws and clauses of laws in conflict with the provisions of this act are hereby repealed. Sec. 4. This Act shall be in force and effect from and after ratification. 1933, c. 494; 1937, c. 117. 44 Public School Laws an act to provide old age security for old and incapaci- tated teachers, and state employees, to provide for the creation of a retirement fund through the joint contributions of employers and employees, and to provide machinery for the proper administration of THIS LAW. The General Assembly of North Carolina do enact: Section 1. Definitions. The following words and phrases as used in this Act, unless a different meaning is plainly required by the context, shall have the following meanings: (1) "Retirement System" shall mean the Teachers' and State Em- ployees' Retirement System of North Carolina as defined in section two of this Act. (2) "Public School" shall mean any day school conducted within the State under the authority and supervision of a duly elected or appointed city or county school board, and any educational institution supported by and under the control of the State. (3) "Teacher" shall mean any teacher, helping teacher, librarian, principal, supervisor, superintendent of public schools or any full-time employee, city or county, Superintendent of Public Instruction, or any full-time employee of Department of Public Instruction, president, dean or teacher, or any full-time employee in any educational institution sup- ported by and under the control of the State. In all cases of doubt, the Board of Trustees, hereinafter jdefined, shall determine whether any person is a teacher as denned in this Act. (4) "Employee" shall mean all full-time employees, agents or officers of the State of North Carolina or any of its department, bureaus and institutions other than educational, whether such employees are elected, appointed or employed: Provided, that the term "employee" shall not in- clude any Justice of the Supreme Court or any Judge of the Superior Court. (5) "Employer" shall mean the State of North Carolina, the County Board of Education, the City Board of Education, the State Board of Education, the Board of Trustees of the University of North Carolina, the Board of Trustees of other institutions and agencies supported and under the control of the State, or any other agency of and within the State by which a teacher or other employee is paid. (6) "Member" shall mean any teacher or State employee included in the membership of the system as provided in sections three and four of this Act: Provided, that no member shall be entitled to participate under the provisions of this Act as to that part of the compensation in excess of three thousand dollars ($3,000.00) received by such member during any year. (7) "Board of Trustees" shall mean the Board provided for in section six of this Act to administer the retirement system. (8) "Medical Board" shall mean the Board of Physicians provided for in section six of this Act. Public School Laws 45 (9) "Service" shall mean service as a teacher or State employee as described in subsection three or four of this section. (10) "Prior Service" shall mean service rendered prior to the date of establishment of the retirement system for which credit is allowable under Section four of this Act; provided, persons now employed by the State Highway and Public Works Commission shall be entitled to credit for employment in road maintenance by the various counties and road districts prior to one thousand nine hundred and thirty-one and subsequent to one thousand nine hundred and twenty-one, where such employment has been continuous. (11) "Membership Service" shall mean service as a teacher or State employee rendered while a member of the retirement system. (12) "Creditable Service" shall mean "Prior Service" plus "Member- ship Service" for which credit is allowable as provided in section four of this Act. (13) "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance or other benefit as provided by this Act. (14) "Regular Interest" shall mean interest compounded annually at such a rate as shall be determined by the Board of Trustees in accordance with section seven, subsection two. (15) "Accumulated Contributions" shall mean the sum of all the amounts deducted from the compensation of a member and accredited to his individual account in the Annuity Savings Fund, together with regular interest thereon as provided in section eight of this Act. (16) "Earnable Compensation" shall mean the full rate of the com- pensation that would be payable to a teacher or employee if he worked in full normal working time. In cases where compensation includes maintenance, the Board of Trustees shall fix the value of that part of the compensation not paid in money. (17) "Average Pinal Compensation" shall mean the average annual earnable compensation of a teacher or employee during his last five years of service, or if he had less than ten years of service, then his average earnable compensation for his total service. (18) "Annuity" shall mean payments for life derived from that "Ac- cumulated Contribution" of a member. All annuities shall be payable in equal monthly installments. (19) "Pensions" shall mean payments for life derived from money provided by the State of North Carolina, and by county or city board of education. All pensions shall be payable in equal monthly installments. (20) "Retirement Allowance" shall mean the sum of the "annuity and the pensions," or any optional benefit payable in lieu thereof. (21) "Retirement" shall mean the withdrawal from active service with a retirement allowance granted under the provisions of this Act. (22) "Annuity Reserve" shall mean the present value of all pay- ments to be made on account of any annuity or benefit in lieu of any annuity, computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees, and regular interest. 46 Public School Laws (23) "Pension Reserve" shall mean the present value of all payments to be made on account of any pension or benefit in lieu of any pension computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees, and regular interest. (24) "Actuarial Equivalent" shall mean a benefit of equal value when computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees, and regular interest. Sec. 2. Name and Date of Establishment. A retirement system is hereby established and placed under the management of the Board of Trustees for the purpose of providing retirement allowances and other benefits under the provisions of this Act for teachers and State employees of the State of North Carolina. The retirement system so created shall be established as of the first day of July, one thousand nine hundred and forty-one. It shall have the power and privileges of a corporation and shall be known as the "TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM OP NORTH CAROLINA," and by such name all of its business shall be transacted, all of its funds invested, and all of its cash and securities and other property held. Sec. 3. Membership. The membership of this retirement system shall be composed as follows: (1) All persons who shall become teachers or State employees after the date as of which the retirement system is established. (2) All persons who are teachers or State employees on the date of the ratification of this Act or who may become teachers or State employees on or before July first, one thousand nine hundred and forty-one except those who shall notify the Board of Trustees, in writing, on or before January first, one thousand nine hundred and forty-two, that they do not choose to become members of this retirement system, shall become mem- bers of the retirement system. (3) Should any member in any period of six consecutive years after becoming a member be absent from service more than five years, or should he withdraw his accumulated contributions, or should be become a bene- ficiary or die, he shall thereupon cease to be a member. Sec. 4. Creditable Service. (1) Under such rules and regulations as the Board of Trustees shall adopt each member who was a teacher or State employee at any time during the year immediately preceding the establishment of the system and who becomes a member during the first year of operation of the retirement system, shall file a detailed statement of all North Carolina service as a teacher or State employee rendered by him prior to the date of establishment for which he claims credit. (2) The Board of Trustees shall fix and determine by appropriate rules and regulations how much service in any year is equivalent to one year of service, but in no case shall more than one year of service be creditable for all services in one year. Service rendered for the regular school year in any district shall be equivalent to one year's service. (3) Subject to the above restrictions and to such other rules and regulations as the Board of Trustees may adopt, the Board of Trustees Public School Laws 47 shall verify, as soon as practicable after the filing of such statements of service, the service therein claimed. In lieu of a determination of the actual compensation of the members that was received during such period of prior service the Board of Trustees may use for the purpose of this Act the compensation rates which will be determined by the average salary of the members for five years imme- diately preceding the date this system became operative as the records show the member actually received. (4) Upon verification of the statements of service, the Board of Trustees shall issue prior service certificates certifying to each member the period of service prior to the establishment of the retirement system, with which the member is credited on the basis of his statement of service. So long as membership continues a prior service certificate shall be final and conclusive for retirement purposes as to such service: Provided, however, that any member may, within one year from the date of issuance or modification of such certificate, request the Board of Trustees to modify or correct his prior service certificate. When membership ceases, such prior service certificate shall become void. Should the teacher or State employee again become a member, such teacher or State employee shall enter the system as a teacher or State employee not entitled to prior service credit except as provided in section five, subsection five, paragraph (b) of this Act. (5) Creditable service at retirement on which the retirement allow- ance of a member shall be based shall consist of the membership service rendered by him since he last became a member, and also if he has a prior service certificate which is in full force and effect, the amount of service certified on his prior service certificate. Sec. 5. Benefits. SERVICE RETIREMENT BENEFIT (1) (a) Any member in service may retire upon written application to the Board of Trustees setting forth at what time, not less than thirty days nor more than ninety days subsequent to the execution of and filing thereof, he desires to be retired: Provided, that the said member at the time so specified for his retirement shall have attained the age of sixty years, and notwithstanding that, during such period of notification, he may have separated from service. (b) Any member in service who has attained the age of sixty-five years shall be retired at the end of the year unless the employer requests such person to remain in the service, and notice of this request is given in writing thirty days prior to the end of the year. (c) Any member in the service who has attained the age of seventy years shall be retired forthwith: Provided, that with the approval of his employer he may remain in service until the end of the year following the date on which he attains the age of seventy years: Provided, that with the approval of his employer and the Board of Trustees, any member who has attained or shall attain the age of seventy years may be continued in service for a period of two years following each such request. 48 Public School Laws allowance for service retirement (2) Upon retirement from service a member shall receive a service retirement allowance which shall consist of: (a) An annuity which shall be the actuarial equivalent of his accumu- lated contributions at the time of his retirement; and (b) A pension equal to the annuity allowable at age of sixty years computed on the basis of contributions made prior to the attainment of age sixty; and (c) If he has a prior service certificate in full force and effect, an additional pension which shall be equal to the annuity which would have been provided at the age of sixty years by twice the contributions which he would have made during such prior service had the system been in operation and he contributed thereunder. DISABILITY RETIREMENT BENEFITS (3) Upon the application of a member in service or of his employer, any member who has had ten or more years of creditable service may be retired by the Board of Trustees, not less than thirty and not more than ninety days next following the date of filing such application, on a dis- ability retirement allowance: Provided, that the Medical Board, after a medical examination of such member, shall certify that such member is mentally or physically incapacitated for the further performance of duty, that such incapacity is likely to be permanent, and that such member should be retired. ALLOWANCE ON DISABILITY RETIREMENT (4) Upon retirement for disability a member shall receive a service retirement allowance if he has attained the age of sixty years, otherwise he shall receive a disability retirement allowance which shall consist of: (a) An annuity which shall be the actuarial equivalent of his ac- cumulated contributions at the time of retirement; and (b) A pension equal to seventy-five per centum of the pension that would have been payable upon service retirement at the age of sixty years had the member continued in service to the age of sixty years without further change in compensation. RE-EXAMINATION OF BENEFICIARIES RETIRED ON ACCOUNT OF DISABILITY (5) Once each year during the first five years following retirement of a member on a disability retirement allowance, and once in every three-year period thereafter, the Board of Trustees may, and upon his application shall, require any disability beneficiary who has not yet at- tained the age of sixty years to undergo a medical examination, such examination to be made at the place of residence of said beneficiary or other place mutually agreed upon, by a physician or physicians desig- nated by the Board of Trustees. Should any disability beneficiary who has not yet attained the age of sixty years refuse to submit to at least one medical examination in any such year by a physician or physicians desig- Public School Laws 49 nated by the Board of Trustees, his allowance may be discontinued until his withdrawal of such refusal, and should his refusal continue for one year all his rights in and to his pension may be revoked by the Board of Trustees. (a) Should the Medical Board report and certify to the Board of Trustees that such disability beneficiary is engaged in or is able to engage in a gainful occupation paying more than the difference between his re- tirement allowance and the average final compensation, and should the Board of Trustees concur in such report, then the amount of his pension shall be reduced to an amount which, together with his annuity and the amount earnable by him, shall equal the amount of his average final compensation. Should his earning capacity be later changed, the amount of his pension may be further modified: Provided, that the new pension shall not exceed the amount of the pension originally granted nor an amount which, when added to the amount earnable by the beneficiary together with his annuity, equals the amount of his average final compen- sation. A beneficiary restored to active service at a salary less than the average final compensation shall not become a member of the retirement system. (b) Should a disability beneficiary under the age of sixty years be restored to active service at a compensation not less than his average final compensation, his retirement allowance shall cease, he shall again become a member of the retirement system, and he shall contribute thereafter at the same rate he paid prior to disability. Any such prior service certificate on the basis of which his service was computed at the time of his retirement shall be restored to full force and effect, and in addition, upon his subsequent retirement he shall be credited with all his service as a member, but should he be restored to active service on or after the attainment of the age of fifty years his pension upon subsequent retire- ment shall not exceed the sum of the pension which he was receiving immediately prior to his last restoration and the pension that he would have received on account of his service since his last restoration had he entered service at the time as a new entrant. RETURN OF ACCUMULATED CONTRIBUTIONS (6) Should a member cease to be a teacher or State employee except by death or retirement under the provisions of this Act, he shall be paid such part of the amount of the accumulated contributions standing to the credit of his individual account in the Annuity Savings Fund as he shall demand. Should a member die before retirement the amount of his accumulated contributions standing to the credit of his individual account shall be paid to his estate or to such persons as he shall have nominated by written designation, duly executed and filed with the Board of Trustees. OPTIONAL ALLOWANCE (7) With the provision that no optional selection shall be effective in case the beneficiary dies within thirty days after retirement, and that such a beneficiary shall be considered as an active member at the time of death; until the first payment on account of any benefit becomes normally due, any member may elect to receive his benefit in a retirement allowance 50 Public School Laws payable throughout life, or he may elect to receive the actuarial equivalent at that time, of his retirement allowance in a reduced retirement allow- ance payable throughout life with the provisions that: Option 1. If he dies before he has received in annuity payments the present value of his annuity as it was at the time of his retirement, the balance shall be paid to his legal representatives or to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees; or Option 2. Upon his death his reduced retirement allowance shall be continued throughout the life of and paid to such person as he shall nomi- nate by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement; or Option 3. Upon his death, one-half of his reduced retirement allowance shall be continued throughout the life of, and paid to such person as he shall nominate by written designation duly acknowledged and filed with the Board of Trustees at the time of his retirement. Sec. 6. Administration. BOARD OF TRUSTEES (1) The general administration and responsibility for the proper operation of the retirement system and for making effective the provisions of the Act are hereby vested in a Board of Trustees which shall be organized immediately after a majority of the trustees provided for in this section shall have qualified and taken the oath of office. "The Board of Trustees shall be a body politic and corporate under the name 'Board of Trustees Teachers' and State Employees' Retirement System'; and as a body politic and corporate shall have the right to sue and be sued, shall have perpetual succession and a common seal, and in said corporate name shall be able and capable in law to take, demand, receive and possess all kinds of real and personal property necessary and proper for its corporate purposes, and to bargain, sell, grant, alien, or dispose of all such real and personal property as it may lawfully acquire. All such property owned or acquired by said body politic and corporate shall be exempt from all taxes imposed by the State or any political sub- division thereof, and shall not be subject to income taxes." (2) The Board shall consist of seven members, as follows: (a) The State Treasurer, ex officio; (b) The Superintendent of Public Instruction, ex officio; (c) Five members to be appointed by the Governor and confirmed by the Senate of North Carolina. One of the appointive members shall be a member of the teaching profession of the State; one to be a general State employee, and three who are not members of the teaching profession or State employees; two to be appointed for a term of two years, two for a term of three years and one for a term of four years. At the expiration of these terms of office the appointment shall be for a term of four years. (3) The trustees shall be paid seven dollars ($7.00) per day during session of the Board and shall be reimbursed from the Expense Appro- Public School Laws 51 priation for all necessary expenses that they may incur through service on the Board. (4) Each trustee other than the ex officio members shall, within ten days after his appointment, take an oath of office, that, so far as it devolves upon him, he will diligently and honestly administer the affairs of the said Board, and that he will not knowingly violate or willingly permit to be violated any of the provisions of law applicable to the re- tirement system. Such oath shall be subscribed to by the member making it, and certified by the officer before whom it is taken, and immediately filed in the office of the Secretary of State. (5) Each trustee shall be entitled to one vote in the Board. Four affirmative votes shall be necessary for a decision by the trustees at any meeting of said Board. (6) Subject to the limitations of this Act, the Board of Trustees shall, from time to time, establish rules and regulations for the administration of the funds created by this Act and for the transaction of its business. (7) The State Treasurer shall be ex officio chairman of the Board of Trustees. The Board of Trustees shall, by a majority vote of all the members, appoint a secretary, who may be, but need not be, one of its members. The Board of Trustees shall engage such actuarial and other service as shall be required to transact the business of the retirement system. The compensation of all persons engaged by the Board of Trustees, and all other expenses of the Board necessary for the operation of the retirement system, shall be paid at such rates and in such amounts as the Board of Trustees shall approve, subject to the approval of the Director of the Budget. (8) The Board of Trustees shall keep in convenient form such data as shall be necessary for actuarial valuation of the various funds of the retirement system, and for checking the experience of the system. (9) The Board of Trustees shall keep a record of all of its proceedings which shall be open to public inspection. It shall publish annually a report showing the fiscal transactions of the retirement system for the preceding year, the amount of the accumulated cash and securities of the system, and the last balance sheet showing the financial condition of the system by means of an actuarial valuation of the assets and liabilities of the retirement system. LEGAL ADVISER (10) The Attorney General shall be the legal adviser of the Board of Trustees. MEDICAL BOARD (11) The Board of Trustees shall designate a Medical Board to be composed of three physicians not eligible to participate in the retirement system. If required, other physicians may be employed to report on special cases. The Medical Board shall arrange for and pass upon all medical examinations required under the provisions of this Act, and shall investigate all essential statements and certificates by or on behalf of a member in connection with an application for disability retirement, and 52 Public School Laws shall report in writing to the Board of Trustees its conclusion and i-ecom- mendations upon all the matters referred to it. DUTIES OF ACTUARY (12) The Board of Trustees shall designate an actuary who shall be the technical adviser of the Board of Trustees on matters regarding the operation of the funds created by the provisions of this Act and shall perform such other duties as are required in connection therewith. (13) Immediately after the establishment of the retirement system the actuary shall make such investigation of the mortality, service and compensation experience of the members of the system as he shall recom- mend and the Board of Trustees shall authorize, and on the basis of such investigation he shall recommend for adoption by the Board of Trustees such tables and such rates as are required in subsection fourteen, para- graphs (a) and (b) of this section. The Board of Trustees shall adopt tables and certify rates, and as soon as practicable thereafter the actuary shall make a valuation based on such tables and rates, of the assets and liabilities of the funds created by this Act. (14) In the year one thousand nine hundred and forty-three, and at least once in each five-year period thereafter, the actuary shall make an actuarial investigation into the mortality, service and compensation ex- perience of the members and beneficiaries of the retirement system, and shall make a valuation of the assets and liabilities of the funds of the system, and taking into account the result of such investigation and valuation, the Board of Trustees shall: (a) Adopt for the retirement system such mortality, service and other tables as shall be deemed necessary; and (b) Certify the rates of contribution payable by the State of North Carolina on account of new entrants at various ages. (15) On the basis of such tables as the Board of Trustees shall adopt, the actuary shall make an annual valuation of the assets and liabilities of the funds of the system created by this Act. MANAGEMENT OP FUNDS Sec. 7. The Board of Trustees shall be the trustee of the several funds created by this Act as provided in Section 8, and shall have full power to invest and reinvest such funds, subject to all the terms, con- ditions, limitations and restrictions imposed by the laws of North Carolina upon the investment of State sinking funds, and subject to like terms, conditions, limitations and restrictions, said trustees shall have full power to hold, purchase, sell, assign, transfer and dispose of any of the securities and investments in which any of the funds created herein shall have been invested, as well as the proceeds of said investments and any moneys belonging to said funds. (2) The Board of Trustees annually shall allow regular interest on the mean amount for the preceding year in each of the funds with the ex- ception of the Expense Fund. The amounts so allowed shall be due and payable to said funds, and shall be annually credited thereto by the Board Public School Laws 53 of Trustees from interest and other earnings on the moneys of the retire- ment system. Any additional amount required to meet the interest on the funds of the retirement system shall be paid from the Pension Accumu- lation Fund, and any excess of earnings over such amount required shall be paid to the Pension Accumulation Fund. Regular interest shall mean such per centum rate to be compounded annually as shall be determined by the Board of Trustees on the basis of the interest earnings of the system for the preceding year and of the probable earnings to be made, in the judgment of the Board, during the immediate future, such rate to be limited to a minimum of three per centum and a maximum of four per centum, with the latter rate applicable during the first year of operation of the retirement system. (3) The State Treasurer shall be the custodian of the several funds. All payments from said funds shall be made by him only upon vouchers signed by two persons designated by the Board of Trustees. The Secre- tary of the Board of Trustees shall furnish said Board a surety bond in a company authorized to do business in North Carolina in such an amount as shall be required by the Board, the premium to be paid from the Ex- pense Fund. (4) For the purpose of meeting disbursements for pensions, annuities and other payments there may be kept available cash, not exceeding ten per centum of the total amount in the several funds of the retirement system, on deposit with the State Treasurer of North Carolina. (5) Except as otherwise herein provided, no trustee and no employee of the Board of Trustees shall have any direct interest in the gains or profits of any investment made by the Board of Trustees, nor as such receive any pay or emolument for his service. No trustee or employee of the Board shall, directly or indirectly, for himself or as an agent in any manner use the same, except to make such current and necessary pay- ments as are authorized by the Board of Trustees; nor shall any trustee or employee of the Board of Trustees become an endorser or surety or in any manner an obligor for moneys loaned or borrowed from the Board of Trustees. METHOD OF FINANCING Sec. 8. All of the assets of the Retirement System shall be credited according to the purpose for which they are held to one of four funds, namely, the Annuity Savings Fund, the Annuity Reserve Fund, the Pension Accumulation Fund and the Pension Reserve Fund. (1) Annuity Savings Fund. The Anuity Savings Fund shall be a fund in which shall be accumulated contributions from the compensation of members to provide for their annuities. Contributions to and payments from the Annuity Savings Fund shall be made as follows: (a) Each employer shall cause to be deducted from the salary of each member on each and every payroll of such employer for each and every payroll period four per centum of his earnable compensation. The em- ployer also shall deduct four per centum of any compensation received by any member for teaching in public schools or in any of the institutions, 54 Public School Laws agencies or departments of the State from salaries other than the appro- priations from the State of North Carolina. In determining the amount earnable by a member in a payroll period, the Board of Trustees may consider the rate of annual compensation payable to such member on the first day of the payroll period as continuing throughout such payroll period, and it may omit deduction from compensation for any period less than a full payroll period if a teacher or State employee was not a member on the first day of the payroll period. (b) The deductions provided for herein shall be made notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby. Every member shall be deemed to consent and agree to the deductions made and provided for herein and shall receipt for his full salary or compensation, and payment of salary or compensation less said deduction shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by such per- son during the period covered by such payment, except as to the benefits provided under this Act. The employer shall certify to the Board of Trustees on each and every payroll or in such other manner as the Board of Trustees may prescribe, the amounts to be deducted; and each of said amounts shall be deducted, and when deducted shall be paid into said Annuity Savings Fund, and shall be credited, together with regular in- terest thereon to the individual account of the member from whose com- pensation said deduction was made. (c) Each Board of Education of each county and each Board of Education of each city, and the employer in any department, agency or institution of the State, in which any teacher receives compensation from sources other than appropriations of the State of North Carolina shall deduct from the salaries of these teachers paid from sources other than State appropriations an amount equal to that deducted from the salaries of the teachers whose salaries are paid from State funds, and remit this amount to the State Retirement System. City Boards of Education and County Boards of Education in each and every county and city which has employees compensated from other than the State appropriation shall pay to the State Retirement System the same per centum of the salaries that the State of North Carolina pays: Provided, that for the purpose of en- abling the county boards of education and the board of trustees of city administrative units to make such payment, the tax levying authorities in each such city or county administrative unit are . hereby authorized, em- powered and directed to provide the necessary funds therefor: Provided, that it shall be within the discretion of the County Board of Education in a county administrative unit and the Board of Trustees in a city administra- tive unit, with the approval of the tax levying authorities of such unit, to provide for the payment from local tax funds of any amount specified in subsection (c) of this section in excess of the amount to be paid to the Retire- ment System on the basis of the State Salary Schedule and term. In case the salary is paid in part from State funds and in part from local funds, the local authorities shall not be relieved of providing and remitting the same per centum of the salary paid from local funds as is paid from State funds. In case the entire salary of any teacher, as defined in this Act, is paid from county or local funds, the county or city paying such salary shall pro- Public School Laws 55 vide and remit to the Retirement System the same per centum that would be required if the salary were provided by the State of North Carolina. (d) In addition to the contributions deducted from compensation as hereinbefore provided, subject to the approval of the board of trustees, any member may redeposit in the annuity savings fund by a single pay- ment an amount equal to the total amount which he previously withdrew therefrom as provided in this Act. Such amounts so deposited shall be- come a part of his accumulated contributions in the same manner as if said contributions had not been withdrawn. (2) Annuity Reserve Fund. The Annuity Reserve Fund shall be the fund in which shall be held the reserves on all annuities in force and from which shall be paid all annui- ties and all benefits in lieu of annuities, payable as provided in this Act. Should a beneficiary retired on account of disability be restored to active service with a compensation not less than his average final compensation at the time of his last retirement his annuity reserve shall be transferred from the Annuity Reserve Fund to the Annuity Savings Fund and credited to his individual account therein. (3) Pension Accumulation Fund. The Pension Accumulation Fund shall be the fund in which shall be accumulated all reserves for the payment of all pensions and other benefits payable from contributions made by employers and from which shall be paid all pensions and other benefits on account of members with prior service credit. Contributions to and payments from the Pension Ac- cumulation Fund shall be made as follows: (a) On account of each member there shall be paid annually in the Pension Accumulation Fund by employers for the preceding fiscal year an amount equal to a certain percentage of the earnable compensation of each member to be known as the "normal contribution," and an additional amount equal to a percentage of his earnable compensation to be known as the "accrued liability contribution." The rate per centum of such con- tributions shall be fixed on the basis of the liabilities of the retirement system as shown by actuarial valuation. Until the first valuation the normal contribution shall be 2.57 per centum for teachers, and 1.57 per centum for State employees, and the accrued liability contribution shall be 2.94 per centum for teachers and 1.59 per centum of the salary of other State employees. (b) On the basis of regular interest and of such mortality and other tables as shall be adopted by the Board of Trustees, the actuary engaged by the Board to make each valuation required by this Act during the period over which the accrued liability contribution is payable, imme- diately after making such valuation, shall determine the uniform and con- stant percentage of the earnable compensation of the average new entrant throughout his entire period of active service which would be sufficient to provide for the payment of any pension payable on his account. The rate per centum so determined shall be known as the "normal contribution" rate. After the accrued liability contribution has ceased to be payable, the normal contribution rate shall be the rate per centum of the earnable salary of all members obtained by deducting from the total liabilities of 56 Public School Laws the Pension Accumulation Fund the amount of the funds in hand to the credit of that fund and dividing the remainder by one per centum of the present value of the prospective future salaries of all members as com- puted on the basis of the mortality and service tables adopted by the Board of Trustees and regular interest. The normal rate of contribution shall be determined by the actuary after each valuation. (c) Immediately succeeding the first valuation the actuary engaged by the Board of Trustees shall compute the rate per centum of the total annual compensation of all members which is equivalent to four per centum of the amount of the total pension liability on account of all members and beneficiaries which is not dischargeable by the aforesaid normal contribution made on account of such members during the re- mainder of their active service. The rate per centum originally so de- termined shall be known as the "accrued liability contribution" rate. (d) The total amount payable in each year to the Pension Accumu- lation Fund shall be not less than the sum of the rate per centum known as the normal contribution rate and the accrued liability contribution rate of the total compensation earnable by all members during the preceding year: Provided, however, that the amount of each annual accrued liability contribution shall be at least three per centum greater than the preceding annual accrued liability payment, and that the aggregate payment by employers shall be sufficient, when combined with the amount in the fund to provide the pensions and other benefits payable out of the fund during the year then current. (e) The accrued liability contribution shall be discontinued as soon as the accumulated reserve in the Pension Accumulation Fund shall equal the present value, as actuarially computed and approved by the Board of Trustees, of the total liability of such fund less the present value, com- puted on the basis of the normal contribution rate then in force, of the prospective normal contributions to be received on account of all persons who are at the time members. (f) All pensions, and benefits in lieu thereof, with the exception of those payable on account of members who received no prior service al- lowance, payable from contributions of employer, shall be paid from the Pension Accumulation Fund. (g) Upon the retirement of a member not entitled to credit for prior service, an amount equal to his pension reserve shall be transferred from the Pension Accumulation Fund to the Pension Reserve Fund. (4) Pension Reserve Fund. The Pension Reserve Fund shall be the fund in which shall be held the reserves on all pensions granted to members not entitled to credit for prior service and from which such pensions and benefits in lieu thereof shall be paid. Should such a beneficiary retired on account of disability be restored to active service with a compensation not less than his aver- age final compensation at the time of his last retirement, the pension thereon shall be transferred from the Pension Reserve Fund to the Pension Accumulation Fund. Should the pension of such disability beneficiary be reduced as a result of an increase in his earning capacity, the amount of Public School Laws 57 the annual reduction in his pension shall be paid annually into the Pension Accumulation Fund during the period of such reduction. (5) Collection of Contributions. (1) The collection of members' contributions shall be as follows: (a) Each employer shall cause to be deducted on each and every pay- roll of a member for each and every payroll subsequent to the date of establishment of the retirement system the contributions payable by such member as provided in this Act, and the employer shall draw his warrant for the amount so deducted, payable to the Teachers' and State Em- ployees' Retirement System of North Carolina, and shall transmit the same, together with schedule of the contributions, on such forms as pre- scribed. (2) The collections of employers' contributions shall be made as follows: (a) Upon the basis of each actuarial valuation provided herein the Board of Trustees shall annually prepare and certify to the Budget Bureau a statement of the total amount necessary for the ensuing fiscal year to the Pension Accumulation and Expense Funds, as provided under Sub-sections (3) and (5) of this section, and these funds shall be handled and disbursed in accordance with Chapter one hundred, Public Laws of one thousand nine hundred and twenty-nine, and amendments thereto, known as The Executive Budget Act. (b) Until the first valuation has been made and the rates computed as provided in Sub-section (3) of this section, the amount payable by employers on account of the normal and accrued liability contributions shall be 5.51 per centum of the payroll of all teachers and 3.16 per centum for other State employees. (c) The Auditor shall issue his warrant to the State Treasurer directing the State Treasurer to pay this sum to the Board of Trustees, from the appropriations for the Teachers' and State Employees' Retire- ment System. (d) Each Board of Education in each county and each Board of Edu- cation in each city in which teachers or other employees of the schools receive compensation for services in the public schools from sources other than the appropriation of the State of North Carolina shall pay the Board of Trustees of the State Retirement System such rate of their respective salaries as are paid those of other employees. Sec. 9. Exemptions from Execution. The right of a person to a pen- sion, or annuity, or a retirement allowance, to the return of contributions, the pension, annuity or retirement allowance itself, any optional benefit or any other right accrued or accruing to any person under the provisions of this Act, and the moneys in the various funds created by this Act, are hereby exempt from any State or municipal tax, and exempt from levy and sale, garnishment, attachment, or any other process whatsoever, and shall be unassignable except as in this Act specifically otherwise provided. 58 Public School Laws Sec. 10. Protection Against Fraud. Any person who shall knowingly make any false statement or shall falsify or permit to be falsified any record or records of this retirement system in any attempt to defraud such system as a result of such act shall be guilty of a misdemeanor, and on conviction thereof by any court of competent jurisdiction, shall be punished by a fine not exceeding five hundred dollars ($500.00), or im- prisonment in the county jail not exceeding twelve months, or both such fine and imprisonment at the discretion of the court. Should any change or error in the records result in any member or beneficiary receiving from the retirement system more or less than he would have been entitled to receive had the records been correct, the Board of Trustees shall correct such error, and as far as practicable, shall adjust the payment in such a manner that the actuarial equivalent of the benefit to which such member or beneficiary was correctly entitled shall be paid. Sec. 11. Limitation on Membership. No other provision of law in any other statute which provides wholly or partly at the expense of the State of North Carolina for pensions or retirement benefits for teachers or State employees of the said State, their widows, or other dependents shall apply to members or beneficiaries of the retirement system established by this Act, their widows or other dependents. Sec 12. Guaranty. The maintenance of annuity reserves and pension reserves as provided for, and regular interest creditable to the various funds as provided in Section 8 of this Act, and the payment of all pensions, annuities, retirement allowances, refunds and other benefits granted under the provisions of this Act, are hereby made obligations of the Pension Accumulation Fund. All income, interest and dividends derived from de- posits and investments authorized by this Act shall be used for the pay- ment of the said obligations of the said fund. Sec. 13. If any section or part of any section of this Act is declared to be unconstitutional, the remainder of this Act shall not thereby be in- validated. All provisions of the law inconsistent with the provisions of this Act are hereby repealed to the extent of such inconsistency: Provided, nothing in this Act shall be construed to repeal or invalidate any of the provisions of Chapter four hundred and eighty-three of the Public Local Laws of one thousand nine hundred and nineteen, or Chapter three hun- dred and eighty-five of the Public-Local Laws of one thousand nine hundred and twenty-one, as amended, relating to pensions for school teachers in New Hanover County. No payment on account of any benefit granted under the provisions of Section 5, Sub-sections (1) and (4) in- clusive, shall become effective or begin to accrue until the end of one year following the date the system is established nor shall any compulsory re- tirement be made during such period. Sec. 14. This Act shall be in full force and effect from and after its ratification. In the General Assembly read three times and ratified, this the seven- teenth day of February, 1941. 1941, c. 25; 1941, c. 143, s. 1. Public School Laws 59 an act to require any person, partnership, association op persons, or corporation that may hereafter be or- ganized as business schools in north carolina to com- ply with their contracts with the students, etc., who matriculate with them for the purpose of taking com- mercial courses in accounting, bookkeeping, stenogra- phy, stenotypy, telegraphy, typing, and other branch- es generally included in the curriculum of such schools; to require such institutions, before collect- ing fees, tuition, and other expenses from students who desire to take such courses in such institutions, to enter into a bond executed by standard and solvent guaranty companies guaranteeing the refund of such fees, tuition, and other expenses as are paid, in case the promoters, officers, and agents of such institu- tions fail to comply with their contract; to provide penalties for failure to refund to any student the amounts whenever the promoters, officers and agents of such institutions fail to comply avith their con- tract to give and furnish training in commercial courses according to the contract entered into. The General Assembly of North Carolina do enact: Section 1. A commercial college or business school shall be defined as follows: Any person, partnership, association of persons, or any corporation or operators of correspondence schools within the State of North Carolina which teaches, publicly, for compensation, any or all the branches of account- ing, bookkeeping, stenotypy, stenography, typing, telegraphy, and other com- mercial subjects which are usually taught in commercial colleges or business schools; provided, however, that any person or individual who undertakes to give instruction in the above subjects to five or less students shall not be con- strued as the operator of a commercial college or business school. Sec. 2. Any person, partnership, association of persons, or any corpora- tion or operators of correspondence schools within the State of North Caro- lina which may desire to open a commercial college, or to establish a branch college or school in this State for the purpose of teaching bookkeeping, stenography, stenotypy, typing, telegraphy, and other courses which are usually taught in commercial colleges, before commencing business must secure a permit from the State Board of Commercial Education of the State of North Carolina authorizing such person, partnership, association of persons or corporations to open and conduct such commercial college or branch college or school. The State Board of Commercial Education shall consist of the Director of the Division of Instructional Service, the Director of the Division of Voca- tional Education and two persons who are owners and operator of duly licensed business or commercial schools which have been in operation within the State for five years, and the State Superintendent of Education, who will be Chairman of the Board and ex-officio Secretary. The two members toho are commercial school owners or operators shall be appointed by the Gov- 60 Public School Laws ernor and shall serve for three years or until their successors have been appointed and taken office. Sec. 3. That application for such permit to open and conduct a business or correspondence school shall state specifically the name of such person, partnership or corporation, and said application shall be filed with the State Board of Commercial Education at Raleigh. If, after due investigation on the part of said board, it is shown to the satisfaction of said board that said applicant is professionally qualified to conduct said school and possesses good moral character for fair and honest dealings, then said board shall approve said application and issue permit to said applicant. Before such permit shall be issued, the applicant shall pay to the State Board of Commercial Edu- cation a fee of ten ($10) dollars as a minimum, and twenty-five ($25) dollars as a maximum, the amount needed being left to the discretion of the Board of Commercial Education, which fees shall be paid annually on the first day of July to the said Board so long as said school shall continue to operate. * Said fees shall be used for office and traveling expenses by said Board or its authorized rapresentatives for investigating applications for conducting commercial schools and also complaints against such schools, and the Secretary of the Board shall keep an account of all moneys received and disbursed which account shall be open at all times to inspection by all persons operating commercial schools and licensed by said Board. Sec. 4. Before the Board of Commercial Education shall issue such permit, the person, partnership, association of persons, or corporation shall execute a bond in the sum of one thousand ($1,000) dollars, signed by a solvent guaranty company authorized to do business in the State of North Carolina or by two solvent sureties, payable to the Clerk of the Superior Court of the County in which such college, branch college, or school will be located and conduct its business, conditioned that the prin- cipal in said bond will carry out and comply with each and all contracts, made and entered into by said college or branch college or school, acting by and through its officers and agents, with any student who desires to enter such college and to take any course in commercial training, and to pay back to such student all amounts collected for tuition and fees in case of failure on the part of the parties obtaining a permit from the Board of Commercial Education to open and conduct a commercial college, or branch college or school, to comply with its contracts to give the instruc- tions contracted for, and for the full period evidenced by such contract. Such bond shall be filed with the Clerk of Superior Court of the County in which the college or branch or school executing the bond is located, and recorded by such Clerk in a book provided for that purpose. That the requirement herein specified for giving the aforesaid bond of one thousand dollars ($1,000.00) shall apply to all commercial colleges, business schools and correspondence schools and branches thereof operating in North Carolina, and the said Board of Commercial Education shall not issue any permit or license to any person, firm, or corporation to operate any of the aforesaid schools until said bond has been given and notice of the approval of same by the Clerk of the Superior Court has been filed with said Board of Commercial Education. Operators' bonds of one thousand dollars ($1,000.00) each shall be required for each branch of such commercial colleges, business Public School Laws 61 schools, or correspondence schools operated within the State by any person, partnership, or corporation. Sec. 5. In any and all cases where the party receiving the permit from the Board of Commercial Education fails to comply with any contracts made and entered into with any student or with the parents or guardians shall have a cause of action against the sureties on the bond as herein provided for the full amount of the payments made to such person, with six (6) per cent interest from, the date of payment of said amount. For a proven violation of its contracts with its students, the Board of Com- mercial Education is authorized to revoke the license issued to the of- fending school. Through periodic reports required of licensed commercial schools and by inspections made by the members of the Board of Com- mercial Education or its authorized representatives, the Board of Com- mercial Education shall have general supervision over commercial schools of the State, the object of said supervision being to protect the public welfare by having the licensed commercial schools to maintain proper school quarters, equipment and teaching forces and of having the school carry out its advertised promises and its contracts made with its students and patrons. Sec. 6. Any person, or each member of any partnership, or each mem- ber of any association of persons, or each officer of any corporation which opens and conducts a commercial college or branch college or school with- out first having obtained the permit required in Section two of this Act, and without first having executed the bond required in Section four of this Act, shall be guilty of misdemeanor and punishable by a fine of not less than one hundred ($100.00) dollars, nor more than five hundred ($500.00) dollars, and each day said college continues to be open and operated shall constitute a separate offense. Sec. 7. Provision of this Act shall not apply to any established university, professional, or liberal arts college, regular high school or any State institu- tion which has heretofore adopted or which may hereafter adopt one or more commercial courses, provided the tuition fees and charges, if any, made by such university, college, high school or State institution shall be collected by their regular officers in accordance with the rules and regulations prescribed by the Board of Trustees or governing body of such university, college, or high school; but the provisions of this Act shall apply to all commercial colleges, business schools and correspondence schools operated within the State of North Carolina as commercial institutions. Sec. 7y 2 . That all persons soliciting students within the State of North Carolina for commercial colleges, business schools or correspondence schools located within or without the State of North Carolina, shall be required to secure on July first of each year hereafter an annual license from the Board of Commercial Education, such license to cost two dollars ($2.00). That when application is made for such license by a solicitor he shall submit to said board for its approval a copy of the contract offered prospective students and used by his said school, together with advertising material and other representations made by said school to its students or prospective students. That when a license is issued to such solicitor he shall receive a license card permitting him to solicit students for his school, but such license shall be 62 Public School Laws issued only on an annual basis expiring June thirtieth of each year and must be renewed to entitle such solicitor to solicit students thereafter. That every commercial college, business school, or correspondence school employing such solicitors shall be responsible for the acts, representations and contracts made by its solicitors. Any person soliciting students for any such schools with- out first having secured a license from the Board of Commercial Education, shall be guilty of a misdemeanor and be punishable by a fine of fifty dollars ($50.00) or thirty days' imprisonment, or both, at the discretion of the court. Sec 8. All persons, partnerships, associations of persons, which are non-residents of North Carolina, or corporations organized and chartered under the laws of any other state, must comply with the provisions of this Act before such can open and conduct a commercial college or branch college or school in the State of North Carolina. Sec. 9. If any part of this Act is decided by the Supreme Court of this State or by any other court of final jurisdiction, and is held to be uncon- stitutional and void, such decision shall not affect or nullify any other part of this Act. Sec. 10. That all laws and clauses of laws in conflict with the pro- visions of this Act are hereby repealed. Sec. 11. That this Act shall be in full force and effect from and after its ratification. 1935, c. 255; 1937, c. 1S4. AN ACT TO REPEAL CHAPTER ONE HUNDRED SIXTY-ONE, PUBLIC LAWS OF ONE THOUSAND NINE HUNDRED NINETEEN, AND TO PROVIDE FOR A PROGRAM OF ADULT EDUCATION AS A PART OF THE STATE PUBLIC SCHOOL SYSTEM, AND TO APPROPRIATE THE SUM OF TWENTY-FIVE THOUSAND ($25,000.00) DOLLARS ANNUALLY FOR CARRYING OUT THE PROVISIONS OF THIS ACT. The General Assembly of North Carolina do enact: Section 1. That chapter one hundred sixty-one of the Public Laws of one thousand nine hundred nineteen, be, and the same is hereby repealed. Sec 2. That the State Board of Education is authorized to provide rules and regulations for establishing and conducting schools to teach adults, and the said schools when provided for shall become a part of the public school system of the State and shall be conducted under the super- vision of the State Superintendent of Public Instruction. Sec 3. That there is hereby appropriated annually the sum of twenty- five thousand ($25,000.00) dollars from the general fund of the State for the purpose of carrying out the provisions of this Act, and to be disbursed on vouchers issued by the State Superintendent of Public Instruction. Sec 4. That all laws and clauses of laws in conflict with this Act are hereby repealed. Sec 5. That this Act shall be in full force and effect from and after June thirtieth, one thousand nine hundred thirty-seven. 1937, c. 198. Public School Laws 63 text-books for elementary grades Sec. 320. State Board of Education adopts. The State Board of Educa- tion is hereby authorized to adopt, for the exclusive use in the public elemen- tary schools of North Carolina supported wholly or in part out of the public funds, text-books and publications, including instructional materials, to meet the needs of such schools in each grade and on each subject-matter in which instruction is required to be given by law. And six months before the ex- piration of the contracts now in force it shall adopt for a period of five years from a multiple list submitted by the Text-book Commission, as here- inafter provided, two basal primers for the first grade and two basal readers for each of the first three grades, and one basal book or series of books on all other subjects contained in the outline course of study for the elementary grades where a basal book or books are recommended for use: Provided, the State Board of Education may adopt not exceeding three basal books on the subject of North Carolina history and, if such multiple adoption is made, the State Board of Education may by rules and regulations prescribe the manner of use of such books in the public schools of the State: Provided, the State Board of Education may enter into contract with a publisher for a period less than five years, if any advantage may accrue to the schools as a result of a shorter contract than five years. C. S. (Ill), 5730; 1933, c. 464, s. 1; 1939, c. 68. Sec. 321. Books adopted for an indefinite period. At the expiration of the contract now existing between the State Board of Education and the publisher for any particular book or books, the State Board of Education, upon satisfactory agreement with the publisher, may continue the con- tract for any particular book or books indefinitely; that is, for a period not less than one nor more than five years. The State Board of Education may, at any time it finds a book unsatis- factory, call for a new report from the Text-book Commission on that sub- ject adopted for an indefinite length of time. Moreover, the Text-book Commission at any time, with the approval of the State Superintendent of Public Instruction, may recommend to the State Board of Education that a given book adopted indefinitely is unsatisfactory or may be greatly im- proved by the adoption of a new book or books. In the event that a change of text-books contracted for an indefinite length of time is deemed necessary by the State Board of Education or by the Text-book Commission, the publisher shall be given at least three months notice prior to the first of May, and at the expiration of which time the State Board of Education is authorized to adopt from a list sub- mitted by the Text-book Commission a new book or books on said subject. Moreover, the publisher of any text-book desiring to end a contract that has been extended indefinitely shall give the State Board of Education at least three months notice prior to the first day of May. In either event, when it becomes necessary to substitute a new book for an old one on the adopted list, the State Board of Education shall call for new recommen- dations from the Text-book Commission on that book and proceed as in the first instance. C. S. (Ill), 5731. Sec. 322. Classification of text-books. The text-books in use in the public schools are hereby divided into two classes: (1) major subjects, 64 Public School Laws which include readers, arithmetics, language and grammar, history and geography; and (2) all other books on all other subjects shall be con- sidered as minor subjects, c. s. (Ill), 5732. Sec. 323. Basal and supplementary books. That all text-books to be adopted by the State Board of Education shall be basal books or supplemen- tary books necessary to complete the course of study. C. S. (Ill), 5733; 1933, c. 464, s. 2. Sec. 324. Adoption of supplementary books. The State Board of Educa- tion is hereby authorized to select and adopt all supplementary books and instructional material necessary to complete the course of study for all schools. Such supplementary books shall neither displace or (nor) be used to the exclusion of basal books. C. S. (Ill), 5734; 1933, c. 464, s. 3. Sec. 325. The Text-Book Commission. The Governor and the Superin- tendent of Public Instruction shall appoint a Text-book Commission com- posed of seven members to be selected from among the teachers, super- visors, principals, and superintendents actually engaged in school work in the State, to serve for five years or until their successors are appointed and qualified, and the Governor and Superintendent of Public Instruction shall have authority to fill any vacancy that may occur in the Text-book Commis- sion, or to remove for sufficient cause any member of the Commission. C. S. (Ill), 5735. Sec. 326. Organization of commission. Immediately after the appoint- ment of the Text-book Commission the Superintendent of Public Instruc- tion shall cause said Text-book Commission to meet in his office and or- ganize by electing a chairman and secretary, and shall adopt such rules and regulations to govern their work as may be deemed necessary, subject to the approval of the State Superintendent of Public Instruction. The work of the Text-book Commission shall then be apportioned among the mem- bers, and the rules and regulations governing its work shall be published in the daily papers, and a copy shall be sent to all publishers that may sub- mit bids and samples of books for adoption. The several members of the Text-book Commission may work independ- ently, seeking information from every legitimate source, but if the mem- bers of the Text-book Commission receive information from representatives of book companies they shall keep a record of each such visit and the pur- pose of the visit. C. S. (Ill), 5736. Sec. 327. Compensation of commission. Each member of the Text-book Commission shall be paid out of any funds under the control of the State Board of Education upon the approval of the budget bureau, on the requi- sition of the Superintendent of Public Instruction, two hundred dollars ($200) for services, and, in addition, the necessary traveling expenses authorized by the Superintendent of Public Instruction. Provided, that the chairman of this Commission shall be paid two hundred and twenty- five dollars ($225). The members so appointed shall serve for a period of five years, or until their successors are appointed, and shall be subject to the call of the State Board of Education at any time during their term of service: Provided further, that for any service rendered more than one Public School Laws 65 year after appointment each member shall be paid a per diem of five dol- lars ($5) and necessary traveling expenses. C. S. (Ill), 5737. Sec. 328. Duties of commission. The Text-book Commission shall first prepare, subject to the approval of the Superintendent of Public Instruction, and publish at the expense of the State, an outline course of study setting forth what subjects shall be taught in each of the elementary grades. It sliall give in outline the number of basal and supplementary books on each subject to be used in each grade in accordance with the law. All text-books which are to be adopted by the State Board of Education shall be basal books or supplementary books. After the outline course of study has been prepared and published, the Text-book Commission shall then prepare a multiple list of basal books to be submitted to the State Board of Education. The multiple list shall contain not less than four nor more than eight books or series of books on all subjects for each grade. On or before February first, one thousand nine hundred and twenty-two, the chairman of the Text-book Commission shall submit to the Superin- tendent of Public Instruction a report setting forth the multiple list of books that have been selected in conformity with the outline course of study. No book shall be included in the multiple list that a majority of the Text-book Commission deems unsuitable, or that does not conform to the outline course of study. The Text-book Commission shall report whether any of the major sub- jects containing a series of books may be divided, taking one part from one series and another part from another series of books on the same subject, and the Commission's report in this respect shall be binding on the State Board of Education. C. S. (Ill), 5738; 1933, c. 464, s. 4. Sec. 329. State Board of Education makes all contracts. The State Board of Education shall make all needful rules and regulations governing the advertisement for bids, when and how prices shall be submitted, when and how sample books for adoption shall be submitted, the nature of the contract to be entered into between the State Board of Education and the publishers, the nature and kind of bond, if any is necessary, and all other needful rules and regulations governing the adoption of books for all public schools not otherwise specified in this Act. After a contract has been entered into between the State Board of Education and the publisher, if the publisher shall fail to keep its contract as to prices, distribution of books, etc., the Attorney-General shall bring suit against said company, when requested by the State Board of Education, for such amount as may be sufficient to enforce the contract or to compensate the State because of the loss sustained by a failure to keep this contract. C. S. (Ill), 5739; 1933, c. 464, s. 5. Sec. 329(a). That the said Board of Education be and it is hereby authorized and empowered in its discretion to purchase and /or acquire a manuscript or manuscripts for school text-books or supplementary books used or to be used in any or all grades of the public schools of North Carolina and to procure the printing and publishing of such books under contract through competitive bids or otherwise as it may in its discretion determine to be for 66 Public School Laws the best interest of the public schools of the State; and if said Board of Education finds that by the acquisition of any such manuscript or manu- scripts, and that by the making of any such contract for any such school books, either basal or supplementary, such books can be furnished to the public schools of the State at a price less than the same may be acquired from publishers, then it shall be the duty of said Board of Education to acquire such manuscripts and cause the same to be published and said books to be distributed in accordance with such rules and regulations and under such terms and conditions as it may deem advisable, having due regard to the standard of the school books so published, after taking into consideration the substance of such books and their adaptability for use in the schools of the State. 1933, c. 464, s. 6. Sec. 329(b). The State Board of Education is authorized and empowered to make and enter into all such contracts as may be necessary to provide for the proper distribution of text-books either through a depository or deposi- tories, or through the State Division of Purchase and Control or other State agency, utilizing County Boards of Education or City Boards of Trustees, if found feasible, for local distribution, as to it may seem advisable; and is further authorized and empowered to make all needed rules, regulations and contracts governing the disposition, sale, and return of school books as are not disposed of to the patrons of the schools, and to determine the nature of the contract or contracts to be entered into between the State Board of Education and the publisher or publishers, for the distribution of school text- books adopted by it or in use in any of the public schools of the State. It may also determine the nature and kind of bond, if necessary, to be given by any depository or other agency carrying out the terms of this Act, to the end that school text-books shall be delivered to the patrons of the schools at the lowest possible net cost. 1933, c. 464, s. 7. Sec. 330. Not more than one major subject to be changed in any one year. At the expiration of the present contracts between the State Board of Education and the publishers not more than one major and two minor subjects shall be changed in any one year, provided satisfactory arrange- ments as to prices and distribution may be made. C. S. (Ill), 5740. Sec. 331. Publishers to register all agents or employees. Publishers submitting books for adoption shall register in the office of the State Superintendent of Public Instruction all agents or other employees of any kind authorized to represent said company in the State, and this regis- tration list shall be open to the public for inspection. C. S. (Ill), 5741. Sec. 3 32. Contracts now in force not affected. All contracts heretofore entered into between publishers and the State of North Carolina shall in no wise be affected by amendments to Chapter 145, Public Laws 1921. C. S. (Ill), 5742. Public School Laws 67 an act to promote economy and efficiency in the opera- tion of the public high schools of the state of north carolina by providing for a uniform adoption of high school text-books. The General Assembly of North Carolina do enact: Section 1. That the State Board of Education is hereby authorized to adopt text-books for the use in all public high schools of the State, sup- ported in whole or in part out of the public funds, and the high school text- books adopted by the State Board of Education in accordance with the pro- visions of this Act shall be used by all the public high schools of the State. Sec. 2. That the Governor and the State Superintendent of Public In- struction, at the expiration of the present high school text-book contracts, shall appoint a State Committee on high school text-books, consisting of five members, five of whom are actively engaged in school work, who shall serve for a term of five years without compensation except for reimburse- ment out of the State Treasury upon the requisition of the State Superin- tendent of Public Instruction for actual expenses incurred by attendance upon meetings of the committee that may be called by or under the di- rection of the State Superintendent of Public Instruction. Sec 3. That it shall be the duty of the State Committee on high school text-books to list all the high school fields of instruction in five separate groups as nearly equal as possible in the cost of text-books. The committee on high school text-books shall further arrange these groups in the order in which they will be considered, and notify the State Board of Education in its first report of this arrangement. During the first year of its term of office, it shall be the further duty of the State Committee on high school text-books to make a thorough examination of any and all books submitted by any publisher in the first group of fields of instruction as arranged by said State Committee on high school text-books, with a view of determining whether the contents, quality and price of said books are such as to make them suitable and desirable for use in the public high schools of the State, and submit, not later than the first day of January, one thousand nine hundred and thirty-four, a multiple list not exceeding three books in each field of instruction in the first group. Not later than January first in each succeeding year, the State Committee on high school text-books shall make a similar report on the fields of instruction in order fixed by it, unless it receives a notice from the State Board of Education prior to May first in said year that such report is not desired. Sec 4. That it shall be the duty of the State Board of Education to select one book in each field of instruction from the multiple list submitted by the State Committee on high school text-books for exclusive use in the public high schools of the State for a period not less than five years. In case the State Board of Education finds it impossible to make a satisfac- tory contract for any one of the books on the multiple list, then it shall notify the State Committee on high school text-books that it cannot make a satisfactory contract for any book on the multiple list in that field of instruction. The State Committee on high school text-books shall then submit another multiple list in that field of instruction from which the 68 Public School Laws State Board of Education shall make an adoption. It shall be the further duty of the State Board of Education to make an indefinite contract with all the publishers having books in groups two, three, four, and five for a period not less than one year nor more than five years, and these books shall continue in use until the State Board of Education, in accordance with the provisions of this Act, shall adopt a book for State-wide use in any given field of instruction: Provided, that the contract shall require each publisher to report annually to the State Board of Education the total sales of each book in the State of North Carolina. Sec. 5. That after a contract has been entered into between the State Board of Education and the publisher, if the publisher shall fail to keep its contract as to prices, distribution of books, an adequate supply of the edi- tion of books as adopted, etc., the Attorney-General shall bring suit against said company when requested by the State Board of Education, for such an amount as may be sufficient to enforce the contract or to compensate the State because of the loss sustained by failure to keep this contract. Sec. 6. That if the publishers of any high school text-books on the adopted list in this State shall contract with another state, or with any county, city or town or other municipality, or shall place its books on sale anywhere in the United States, for or at a less price than that in its con- tract with the State of North Carolina, it shall be, and is hereby made a part of the contract of that company to furnish that book to the high schools of this State at a price not to exceed that for which the book is furnished, sold, or placed on sale in any other state, or in any such other county, city, town or other municipality. Sec. 7. That the text-books for high school instruction adopted under the provisions of this Act shall be for the exclusive use of the high schools of this State when so adopted and placed upon the approved list in the manner as set out in this Act. Sec. 8. That this article shall become a part of the Public School Laws of the State of North Carolina, and that any sections which conflict with sections herein are hereby repealed. Sec. 9. That this Act shall be in force and effect from and after its ratification. 1931, c. 359. AN ACT TO REQUIRE THE PUBLIC SCHOOLS OF THE STATE TO FURNISH ADEQUATE AND SCIENTIFIC INSTRUCTION IN THE SUBJECT OF ALCOHOLISM AND NARCOTISM. The General Assembly of North Carolina do enact: Section 1. In addition to health education, which is now required by law to be given in all schools supported in whole or part by public money, thorough and scientific instructions shall be given in the subject of alco- holism and narcotism. The State Superintendent of Public Instruction is hereby authorized and directed to prepare, or cause to be prepared, for the use of all teachers who Public School Laws 69 are required by this Act to give instructions in the subject of alcoholism and narcotism, a course of study on health education, which shall embrace suggestions as to methods of instruction, outlines of lesson plans, lists of accurate and scientific source material, suggested adaptations of the work to the needs of the children in the several grades, and shall specify the kind of work to be done in each grade, and the amount of time to be devoted to such instruction. The State Text-book Commission and the State Board of Education shall be authorized, directed and empowered to select, approve, and adopt a simple, scientific text-book, which text-book shall be free from political propaganda and approved by the State Board of Health and the faculty of the Medical School of the University of North Carolina, on the effects of alcoholism and narcotism on the human system, and/or a different or revised text on ''Health," which shall contain chapters giving complete, detailed, and scien- tific information on the subjects, to be taught as a unit of work every year in the appropriate elementary grade, or grades, of the public schools of North Carolina. Adequate time shall be given to teach the subject efficiently. The work in the subject of alcoholism and narcotism shall be a part of the work required for promotion from one grade to another: Provided, also, that pro- vision shall be made in the course of study prepared by the State Department of Public Instruction for teachers, aides and devices for the assistance of teachers in teaching the effects of alcoholism and narcotism on the human system. Sec. 2. In all normal schools, teacher training classes, summer schools for teachers, and other institutions giving instruction preparatory to teaching or to teachers actually in service, adequate time and attention shall be given to the best methods in teaching health education, with special reference to the nature of alcoholism and narcotics. Sec. 3. It shall be the duty of all officers and teachers, principals and superintendents in charge of any school or schools, comprehended within the meaning of this Act, to comply with its provisions; and any such officer or teacher who shall fail or refuse to comply with the requirements of this Act, shall be subject to dismissal by the proper authorities. Sec. 4. This Act shall be in full force and effect from and after its ratification. 1929, c. 96; 1935, c. 404. AN ACT TO PROVIDE A RENTAL SYSTEM FOR TEXT-BOOKS USED IN THE PUBLIC SCHOOLS OF THE STATE AND TO PROMOTE ECON- OMY AND EFFICIENCY IN THE ADOPTION OF TEXT-BOOKS. The General Assembly of North Carolina do enact: Section 1. The Governor Appoints: There is hereby created a State Text-book Purchase and Rental Commission of five members, as follows: The State Superintendent of Public Instruction as ex-officio chairman, the Attorney-General, the Director of the Division of Purchase and Contract, and two members, to be appointed by the Governor, for a term of two years each. Said appointive members to receive such compensation as the 70 Public School Laws law provides for members of the State School Commission. The expense and cost of said Commission shall be paid out of the appropriation made available by this Act. Sec. 2. Powers and duties of Commission. The said Text-book Purchase and Rental Commission is hereby authorized, empowered, and directed to promulgate rules and regulations necessary to: (1) Acquire by contract, and/or purchase, such text-books and instruc- tional supplies, which are, or may be on the adopted list of the State Standard Course of Study, as the Commission may find necessary to supply the needs of the children in the public schools of the State. (2) Provide a system of distribution of said text-books and supplies to the children in the public schools of the State, and shall distribute such books as are provided under the rental system without the use of any depository other than some agency of the State. (3) Provide for uniform rental charge for said text-books and supplies to the children in attendance upon the public schools of the State. Said rental charge shall be collected annually in an amount not to exceed one- third of the cost of said text-books and supplies: Provided nothing herein shall be construed to prevent the purchase of text-books from said Commis- sion needed for any child in the public schools of the State, by any parent, guardian, or person in loco parentis. (4) Provide for the use of said text-books without charge to the indi- gent children of the State. (5) Adopt, provide and distribute all blanks, forms and reports neces- sary to keep a careful check and record of all the books, supplies dis- tributed, rentals collected, indigents furnished, condition and repairs of books, and such other information as said Commission may require, to the end that an accurate and complete inventory of the affairs of said Commis- sion may be available at all times to the Governor and Council of State. (6) Cause an annual audit to be made of the affairs of the said Commis- sion and a certified copy of same to be furnished the Governor and Council of State. (7) Books shall not be interchangeable between the white and colored schools, but shall continue to be used by the race first using same. (8) Whenever any county or city administrative unit has paid over to the State Textbook Purchase and Rental Commission, in rentals, a sum equal to the price fixed by said Commission for the sale of rental textbooks, said county or city administrative unit may, at its option, with the approval of the Commission, withdraw from the textbook rental system set up under rules and regulations adopted by the Commission, and upon such with- drawal, shall become the absolute owner of all such textbooks for which the purchase price has been paid in full to the said Commission. Sec. 3. Purchase and contract. The purchase of all text-books and sup- plies under the provisions of this Act adopted as now provided by law shall be made through the Division of Purchase and Contract. Sec. 4. Rentals paid to State Treasury. All sums of money collected as rentals under the provisions of this Act shall be paid monthly as collected Public School Laws 71 into the State Treasury, to be entered as a separate item known as the "State Text-book Rental Fund." Disbursement of said funds shall only be had by order of the Council of State; provided further, that the State Text- book Purchase and Rental Commission in conjunction with the State Board of Health shall adopt rules and regulations governing the use and fumiga- tion for the regular disinfection of all text-books used in the public schools of the State. The Governor, with the approval of the Council of State, may, upon re- quest and certification of the State Textbook Commission that surplus funds in the State Textbook Rental Fund herein provided for are not needed for the purchase of rental textbooks, transfer so much of said surplus to the general fund of the State to be used for the purchase of free textbooks as, in their judgment, may be necessary for the operation of the free textbook system noiv provided by law. (This amendment is not effective after January fifteenth, one thousand nine hundred and forty-three.) Sec. 5. Any County or City Board of Education now operating a text- book rental system shall be permitted to continue such local rental system without interference from the State Commission: Provided, that the rental fees charged by such local rental authority shall not exceed the rental charges set by the State Commission : Provided further, that such local text-book rental authority may purchase from the State Commission text- books for its local use. Sec. 6. Appropriation and issuance of Short-term Notes: (1) For the purpose of carrying out the provisions of this Act there is hereby appropriated out of the public revenues of the State a sum of one million five hundred thousand dollars ($1,500,000). (2) The Treasurer, with the approval of the Council of State, is hereby authorized, empowered and directed to issue short-term notes, pledging the full faith and credit of the State, in such amounts, length of term and rate of interest as shall be most advantageous to the State, but in no event shall the total sum of such notes exceed the sum of one million five hun- dred thousand dollars. (3) The full faith credit and taxing power of the State are hereby pledged for the payment of the principal and interest of the notes herein authorized. (4) The coupons, if any, appurtenant to such notes, shall be receivable after maturity in payment of all taxes, debts, dues, licenses, fines and de- mands due the State of any kind whatsoever. (5) All of such notes and coupons shall be exempt from all State, County and Municipal taxation or assessments, direct or indirect, general or special, whether imposed for the purpose of general revenue or other- wise, and the interest on such notes shall not be subject to taxation as for income, nor shall such notes or coupons be subject to taxation when con- stituting a part of the surplus of any bank, trust company, or other cor- poration. (6) It shall be lawful for all executors, administrators, guardians and fiduciaries generally, and all sinking fund commissions, to invest any moneys in their hands in such notes. 72 Public School Laws Sec. 7. All laws and clauses of laws in conflict with the provisions of this Act, to the extent of such conflict, are hereby repealed. Sec. 8. This Act shall be in full force and effect from and after its ratification. 1935, c. 422; 1941, c. 301, s. 1; 1941, c. 262, a. 1. AN ACT SUPPLEMENTAL TO AND AMENDING CHAPTER FOUR HUN- DRED TWENTY-TWO, PUBLIC LAWS OP ONE THOUSAND NINE HUNDRED THIRTY-FIVE, AND TO PROVIDE FREE BASAL TEXT- BOOKS TO THE ELEMENTARY SCHOOL CHILDREN OF THE STATE, AND TO CONTINUE THE RENTAL SYSTEM FOR HIGH SCHOOL BOOKS AND SUPPLEMENTARY READERS. The General Assembly of North Carolina do enact: Section 1. State Textbook Commission. There is hereby created a State Textbook Commission of five members to be composed as follows: The State Superintendent of Public Instruction, ex-oflicio chairman; the Attorney General, the Director of the Division of Purchase and Contract, and two members to be appointed by the Governor for a term of two years each. The said appointive members are to receive as compensation such per diem and travel expenses as is now provided by law. All the powers and duties heretofore conferred by law upon the State Textbook Purchase and Rental Commission, together with such other powers and duties as may be conferred by the provisions of this act shall be vested in the State Textbook Commission. The expenses and costs of the Commission for carrying out the provisions of this act are to be paid out of the appro- priation made available in section seven of this act. Sec 2. Duties of the Commission. The State Textbook Commission is hereby authorized and empowered to administer funds and to establish rules and regulations necessary to: (1) Acquire by contract and/or purchase such textbooks that are or may be on the adopted list of the State of North Carolina as the Com- mission may find necessary to carry out the provisions of this Act: (2) Provide a system of distribution of said textbooks so that they may be available for the children of the public schools when this measure may be put into effect as hereinafter provided. (3) Provide for the free use, including the proper care and return thereof, of elementary basal textbooks to such grades of the elementary public schools of North Carolina as may be determined by the State Text- book Commission. Title to said books shall be vested in the State. For the purposes of this act, the elementary grades shall be considered the grades from one to seven, inclusive. The basal elementary textbooks in the hands of the State Textbook Purchase and Rental Commission, when this measure is put in effect, shall become a part of the stock of books needed to carry out the provisions of this Act. (4) Provide books for high school children in the public high schools of North Carolina on a rental basis as now provided in Chapter Four Hundred and Twenty-Two, Public Laws of One Thousand Nine Hundred Public School Laws 73 Thirty-Five: Provided, that free basal books may be furnished to high school children if sufficient funds are available and if the commission finds it advisable to take such action: (5) Provide supplementary readers for the elementary children in the public elementary schools of North Carolina on a rental basis, as provided for in Chapter Four Hundred and Twenty-Two, Public Laws of One Thousand Nine Hundred Thirty-Five: (6) Provide and distribute all blanks, forms, and reports necessary to keep a careful record of all the books, including their use, state of repair and such other information as the commission may require. (7) Buy, sell, or rent library books to be placed in the public schools of this State from a list to be selected by the State Superintendent of Public Instruction, with the approval of the State Board of Education, and to be ^placed in such schools as may be designated by the State Textbook Commis- sion: Provided, that such library books shall be purchased in accordance with rules and regulations duly promulgated by the State Board of Educa- tion. Sec. 3. The County Board of Education in each County Administrative Unit and the school governing board in each City Administrative Unit shall "be designated the legal custodians of all books furnished by the State, either for free use or on a rental basis. It shall be the duty of the said boards to provide adequate and safe storage facilities for the proper care of said books. Sec. 4. It shall be the duty of the Superintendent of each Administra- tive Unit as ex -officio agent of the Commission to administer the provisions of this act and the rules and regulations of the State Textbook Com- mission in so far as said act and said rules and regulations may apply to said unit. He shall also have authority to require the cooperation of principals and teachers to the end that the children may receive the highest possible service, and that all books and monies may be properly accounted for. In the event any teacher or principal shall fail to comply "with the provisions of this section, it shall be the duty of the superin- tendent to withhold the salary checks of said principal or teacher until the duties imposed hereby have been performed. In the event any superin- tendent shall fail to comply with the provisions of this section it shall be the duty of the State School Commission and the State Superintendent of Public Instruction to withhold salary checks of said superintendent and the State Treasurer shall not pay same until the duties imposed hereby have been- performed, and it shall be the duty of the Secretary of the State Textbook Co7n?nission to notify the State School Commission, the State Superintendent of Public Instruction, and the State Treasurer in the event any superinten- dent shall fail to comply with the provisions of this section, and no pay- ments shall be made until notice has been received from the Secretary of the State Textbook Commission that the provisions of this section have been complied with. Sec. 5. Any unexpended portion of the appropriation and revenues provided for in Chapter Four Hundred Twenty-Two, Public Laws of One Thousand Nine Hundred Thirty-Five, shall be available to the commission 74 Public School Laws during the next biennium for carrying out the provisions of this act, or of the provisions of Chapter Pour Hundred and Twenty-Two, Public Laws of One Thousand Nine Hundred and Thirty-Five not in conflict with the provisions of this Act. These funds shall be in adition to the proceeds of bonds authorized by this Act. Sec. 6. It is the purpose of this Act to supplement the provisions of Chapter Pour Hundred Twenty-Two, Public Laws of One Thousand Nine Hundred and Thirty-Five, not in conflict herewith, and any provisions of Chapter Four Hundred Twenty-Two, Public Laws of One Thousand Nine Hundred and Thirty-Five in conflict with the provisions hereof, are hereby repealed. Sec. 7. To provide a fund for the purpose of purchasing books and carrying out the provisions of this act, the Treasurer of the State is authorized and directed, by and with the consent of the Governor and Council of State, to issue and sell at one time, or from time to time, bonds of the State in an amount not exceeding one million five hundred thousand dollars ($1,500,000.00). Sec. 8. The bonds authorized and directed to be issued by the preceding section shall be coupon bonds of such denomination, or denominations, as may be determined by said State Treasurer, and shall bear such date or dates, and such rate or rates of interest not exceeding five per centum (5% ) per annum, payable semi-annually, as may be fixed by the Governor and Council of State, and shall mature in equal annual installments begin- ning five years and ending twenty-four years from date. If all of such bonds shall not be issued at one time, the bonds issued at any one time shall mature as above provided. The bonds shall be signed by the Gov- ernor of the State and State Treasurer, and sealed with the Great Seal of the State. The coupons thereon may be signed by the State Treasurer alone, or may have a facsimile of his signature printed, engraved, or lithographed thereon, and the said bonds shall in all other respects be in such form as the State Treasurer may direct; said bonds shall be subject to registration as is now or may hereafter be provided by law for State bonds; and the coupons thereon shall, after maturity, be receivable in payment of all taxes, debts, dues, licenses, fines and demands due the State of North Carolina, of any kind whatsoever. Before selling any of the bonds herein authorized to be issued, the State Treasurer shall adver- tise the sale and invite sealed bids in such manner as in his judgment may seem to be most effectual to secure the par of said bonds at the lowest rate of interest. Sec. 9. The said bonds and coupons shall be exempt from all State,, county or municipal taxation or assessment, direct or indirect, general or special, whether imposed for the purpose of general revenue or other- wise, and the interest paid thereon shall not be subject to taxation as for income, nor shall said bonds and coupons be subject to taxation when constituting a part of the surplus of any bank, trust company, or other corporation, and it shall be lawful for all executors, administrators, guardians, or other fiduciaries generally, and all sinking fund commis- sioners, to invest in said bonds. Public School Laws 75 Sec. 10. The full faith and credit and taxing power of the State are hereby pledged for the payment of the principal and interest of the bonds herein authorized. Sec 11. This Act shall be in full force and effect from and after its ratification. 1837, c. 169; 1939, c. 90; 1941, c. 190, s. 1. AN ACT TO INCORPORATE THE NORTH CAROLINA STATE THRIFT SOCIETY. The General Assembly of North Carolina do enact: Section 1. That in order to better provide for the education of the school children of the State in the principles and practice of thrift and saving, and in order to aid them in making better provision for their future advanced education, there is hereby created under the patronage and control of the State a nonstock corporation to be known as the North Carolina State Thrift Society. Sec. 2. The charter of the Society shall be perpetual. Sec 3. The membership of the Society shall be identical with the mem- bership of the Governing Board, which shall consist of sixteen Directors. The State Treasurer, the Superintendent of Public Instruction, the Presi- dent of the North Carolina Bankers Association and the President of the University of North Carolina shall throughout their terms of office be ex- officio members of the Board. The remaining twelve members of the Board shall be appointed by the Governor for successive terms of four years each, and shall be equally divided between the business and financial and the educational interests of the State, six members to each of the named groups, provided that at least four of those representing business must be experienced bankers. Sec 4. In the event of a vacancy occurring before the expiration of the terms of office of any Director, the Board by a majority vote of its full membership, including ex-ofBcio members, shall have power to elect per- sons to fill out the unexpired terms. Sec 5. The officers of the Society shall be elected by the Board, and shall include a president, vice-president, secretary, treasurer and auditor. The treasurer of the Society shall oe responsible for the funds of the Society, and shall furnish good and sufficient surety in such amount as may be fixed from time to time by the Board of Directors. Sec 6. The Society shall have power and authority to purchase, lease and otherwise acquire such real and personal property as may be deemed useful to the prosecution of the objects for which it is created. It may sell and dispose of the same and may hold or may sell and convey such property also as may be taken in whole or partial satisfaction of any debt due to it. It may also receive gifts of money and property to be applied to its corpo- rate purposes. 76 Public School Laws Sec. 7. The Society may receive deposits of the funds of children and others attending any of the public schools or colleges of North Carolina, as provided in Chapter 481 of the Public Laws of North Carolina in 1933, entitled "An Act to provide for instruction in thrift and saving in the pub- lic schools of the State," and subject to repayment on terms established by the Board, provided that no individual account may exceed $1,000. Sec. 8. The funds in the Treasurer's hands may be deposited by him, to his credit, with banks which are members of the Federal Deposit Insurance Corporation. In no case may the amount in any one bank exceed the amount covered by insurance. The interest accruing and paid on such deposits shall be added to the funds of the Society. Sec. 9. Neither deposits in the Society nor its property investments and assets shall at any time be subject to taxation by the State of North Caro- lina or any of its subdivisions, except that gift, inheritance or estate taxes may be levied on the transfer of private deposits in the Society. Sec 10. (Repealed.) Sec 11. The funds of the Society may, at the discretion of the Board, be invested in obligations of the United States Government, or of the State of North Carolina, or deposited as previously provided in Section eight of this Act. Sec 12. Provided, that no liability of any kind shall rest on the State of North Carolina by reason of this Act. Sec 13. This Act shall be in effect from and after the date of its ratification. 1933, c. 385; 1935, c. 489. AN ACT TO PROVIDE FOR INSTRUCTION IN THRIFT AND SAVING IN THE PUBLIC SCHOOLS OF THE STATE. The General Assembly of North Carolina do enact: Section 1. Within 150 days from the approval of this Act the State Superintendent of Public Instruction shall provide in the public schools of the State for instruction in thrift and the principles, practice and advan- tage of saving. Sec 2. In connection with the instruction so provided arrangements shall be made at each school for the receiving of students' savings deposits into the North Carolina State Thrift Society, subject to its rules and on the terms provided therein. Sec 3. That the administration of the system in each school shall be in charge of one or more of the teachers in said school to be designated by the principal. Sec 4. That the savings deposits shall be transmitted to the Treasurer of the said Society from time to time, in accordance with rules to be established by the Governing Board of the North Carolina State Thrift Society, and shall be held for the purposes declared in the charter of the said Society. Public School Laws 77 Sec. 5. This Act shall be in effect from and after the date of its ratification. 1933, c. 481; 1935, c. 489. GENERAL. COMPULSORY ATTENDANCE LAW Sec. 347. Parent or guardian required to keep child in school; excep- tion. Every parent, guardian, or other person in the State having charge or control of a child between the ages of seven and fourteen years shall cause such child to attend school continuously for a period equal to the time which the public school in the district in which the child resides shall be in session. The principal, superintendent, or teacher who is in charge of such school shall have the right to excuse the child from temporary attendance on account of sickness or distance of residence from the school, or other unavoidable cause which does not constitute truancy as defined by the State Board of Education. The term "school" as used in this section is defined to embrace all public schools and such private schools as have tutors or teachers and curricula that are approved by the county superin- tendent of public instruction or the State Board of Education. All private schools receiving and instructing children of compulsory school age shall be required to keep such records of attendance and render such reports of the attendance of such children as are required of public schools; and attendance upon such schools, if the school or tutor refuses or neglects to keep such records or to render such reports, shall not be accepted in lieu of attendance upon the public school of the district, town, or city which the child shall be entitled to attend: Provided, instruction in a private school or by a private tutor shall not be regarded as meeting the requirements of the law unless the courses of instruction run concurrently with the term of the public school in the district and extend for at least as long a term. C. S. (Ill), 5757; 1925, c. 226, s. 1; 188 N. C, 591. Sec. 348. State Board of Education to make rules and regulations; method of enforcement. It shall be the duty of the State Board of Edu- cation to formulate such rules and regulations as may be necessary for the proper enforcement of the provisions of this article. The Board shall prescribe what shall constitute truancy, what causes may constitute legiti- mate excuses for temporary non-attendance due to physical or mental inability to attend, and under what circumstances teachers, principals, or superintendents may excuse pupils for non-attendance due to immediate demands of the farm or the home in certain seasons of the year in the several sections of the State. It shall be the duty of all school officials to carry out such instructions from the State Board of Education, and any school official failing to carry out such instructions shall be guilty of a misdemeanor. Provided, that the preceding section shall not be in force in any City or County that has a higher compulsory attendance law now in force than that provided herein; but in any such case it shall be the duty of the State Board of Education to investigate the same and decide that any such law now in force has a higher compulsory attendance feature than that provided by this article: Provided, that wherever any district is with- out adequate buildings for the proper enforcement of this article, the County Boards of Education may be allowed not more than two years 78 Public School Laws from July the first, one thousand nine hundred and nineteen, to make full and ample provision in every district. Mental incapacity shall he an excuse for non-attendance, and is interpreted to mean feeble-mindedness or such nervous disorder as to make it either impossible for such child to profit by instruction given in the school or im- practicable for the teacher properly to instruct the normal pupils of the school. In the case of feeble-minded children the teacher shall designate the same in her reports to the County Superintendent of Public Welfare, and it shall be his duty to report all such cases to the State Board of Charities and Public Welfare. Whereupon said Board shall make, or cause to be made, an examination to ascertain the mental incapacity of said child and report the same to the County or City Superintendent involved. Upon receipt of said report the local school authorities are hereby authorized, under such limita- tions and rules as the State Board of Education may adopt, to exclude said child from the public school when it is ascertained that the child cannot bene- fit by said instruction and his presence becomes a source of disturbance to the rest of the children. In all such cases in which a child is excluded from school a complete record of the whole transaction shall be filed in the office of the County or City Superintendent and kept as a public record. 1923, c. 136, s. 348; 1931, c. 453, s. 1. Sec. 349. Attendance officers; reports; prosecutions. The State Super- intendent of Public Instruction shall prepare such rules and procedure and furnish such blanks for teachers and other school officials as may be necessary for reporting each case of truancy or lack of attendance to the chief attendance officer referred to in this article. Such rules shall pro- vide, among other things, for a notification in writing to the person respon- sible for the non-attendance of any child, that the case is to be reported to the chief attendance officer of the county unless the law is immediately complied with. The County Board of Education in a county administrative unit and the board of trustees in a city administrative unit may employ special attendance officers to be paid from funds derived from fines, for- feitures and penalties, or other local funds, and said officers shall have full authority to prosecute for violations of this article; Provided further that in any unit where a special attendance officer is employed, the duties of chief attendance officer or truant officer as provided by law shall, in so far as they relate to such unit, be transferred from the County Superintendent of Public Welfare to the special attendance officer of said unit. C. S. (Ill), 5759; 1939, c. 270. Sec. 350. Violation of law; penalty. Any parent, guardian, or other person violating the provisions of this article shall be guilty of a misde- meanor, and upon conviction shall be liable to a fine of not less than five dollars nor more than twenty-five dollars, and upon failure or refusal to pay such fine, the said parent, guardian, or other person shall be impris- oned not exceeding thirty days in the county jail. c. S. (Ill), 5760. Sec. 351. Investigation and prosecution by county superintendent and attendance officer. The county superintendent of public welfare or chief school attendance officer or truant officer provided for by law shall investi- Public School Laws 79 gate and prosecute all violators of the provisions of this article. The reports of unlawful absence required to be made by teachers and principals to the chief attendance officer shall in his hands, in case of any prosecution, con- stitute prima facie evidence of the violation of this article, and the burden of proof shall be upon the defendant to show the lawful attendance of the child or children upon an authorized school. C. S. (Ill), 5761; 1925, e. 226, s. 2. Sec. 352. Investigation as to indigency of child. If affidavit shall be made by the parent of a child or by any other person that any child be- tween the ages of seven and fourteen years is not able to attend school by reason of necessity to work or labor for the support of itself or the support of the family, then the attendance officer shall diligently inquire into the matter and bring it to the attention of some court allowed by law to act as a juvenile court, and said court shall proceed to find whether as a matter of fact such parents, or persons standing in locus parentis, are unable to send said child to school for the term of compulsory attendance for the reasons given. If the court shall find, after careful investigation, that the parents have made or are making a bona fide effort to comply with the compulsory attendance act, and by reason of illness, lack of earning capacity, or any other cause which the court may deem valid and suffi- cient, are unable to send said child to school, then the court shall find and state what help is needed for the family to enable the attendance law to be complied with. The court shall transmit its findings to the county board of education of the county or, in special-charter districts, to the board of trustees in which the case may arise. C. S. (Ill), 5762. Sec. 353. Aid to indigent child. The county board of education shall, in its discretion, order aid to be given the family from the operating and equipment fund of the county school budget to an extent not to exceed ten dollars per month for such child during the continuance of the compulsory term; and shall at the same time require said officer to see that the money is used for the purpose for which it is appropriated and to report from time to time whether it shall be continued or withdrawn. And the county board of education is hereby authorized in making out the county budget to provide a sum to meet the provisions of this article. C. S. (Ill), 5763. AN ACT TO AUTHORIZE THE GOVERNOR TO APPOINT A COMMIS- SION TO INVESTIGATE THE FEASIBILITY OF ESTABLISHING ONE OR MORE FARM-TRADE SCHOOLS. Whereas, there are a large number of boys out of school between the ages of sixteen and twenty years who are without training for useful em- ployment or gainful occupation who will soon have to assume the responsi- bilities of citizenship; and, Whereas, the public schools could not, without excessive cost, provide for further and additional training such as the demands of today make necessary for young men to have in order to make of them useful and practical citizens; and, 80 Public School Laws Whereas, it appears that an investigation should be authorized to determine the advisability of establishing one or more farm-trade schools in which adequate and necessary training could be provided for young men who are out of the public schools and who are without opportunity to obtain further training; therefore, The General Assembly of North Carolina do enact: Section 1. That the Governor be authorized to appoint a commission of three men, one of whom shall be named chairman, to make an investi- gation and study of the feasibility of establishing one or more farm-trade schools in the State; that the said commission shall file its report not later than July first, one thousand nine hundred and forty-two, setting forth its findings, conclusions and recommendations, which said report shall be made to the Governor who in his discretion may transmit the same with his recommendations to the General Assembly. Sec. 1%. That all the duties, investigations, studies and reports re- quired of a commission by this Act shall be performed by the members of the commission authorized tj be appointed by the Governor under House Resolution four hundred and one, which is committee substitute for House Bill four hundred and one. Sec. 2. That all laws and clauses of laws in conflict with this Act to the extent of such conflict are hereby repealed. Sec. 3. That this Act shall be in full force and effect from and after its ratification. In the General Assembly read three times and ratified, this the fifteenth day of March, 1941. 1941, c. 348. Resolution No. 29 A JOINT RESOLUTION TO PROVIDE FOR GIVING INSTRUCTIONS IN SAFETY EDUCATION IN PUBLIC SCHOOLS Whereas, the subject of safety education is receiving prominent atten- tion by civic organizations, leading citizens and school officials of our Country, and Whereas, statistics prove that many lives could be saved and accidents prevented if our school children were given an opportunity for class-room instruction in safety education against accidents in the home, on the play- ground, at school and upon the highways, and Whereas, the General Assembly of North Carolina recognizes that the State Department of Education, and school officials throughout the State, are willing to cooperate in selecting right and proper subject material upon safety to be taught in the schools of the State, now, therefore, be it Resolved by the House of Representatives, the Senate concurring: Section 1. That the State Superintendent of Public Instruction be, and he is hereby, directed and instructed, to add a course of study upon the Public School Laws 81 subject of "Safety" in which every child in the first eight grades of the public schools of North Carolina shall be given a course in safety edu- cation; and that he be further instructed and directed to contact each county and city superintendent and advise them of this resolution and ask their cooperation in giving effect to the teaching of safety and in obtaining for the students the best materials now available. Sec. 2. That this Resolution be in effect from, and after, its ratification. In the General Assembly read three times and ratified, this the 24th day of March, 1939. Resolution No. 25 A JOINT RESOLUTION AUTHORIZING THE GOVERNOR OF NORTH CAROLINA TO APPOINT A COMMISSION TO STUDY THE VARIOUS STATE SUPPORTED EDUCATIONAL INSTITUTIONS AND DEPART- MENTS. Whereas, it is the opinion of a large group of citizens of our State that there is a gap which makes the transition of boys and girls from high school to college difficult; and Whereas, there should be close articulation and cooperation between the public school system and the institutions of higher learning which are operated by funds appropriated by the General Assembly of North Caro- lina from the public treasury; and Whereas, the vocational needs of boys and girls in North Carolina high schools who are not able to attend the institutions of higher learning are not being adequately met at the present time; and Whereas, there is a shortage of facilities for training vocational teachers in our State institutions; and Whereas, it is necessary that a thorough examination of the whole instructional program provided for in public elementary and secondary schools of the State, including courses of study and curricula, be made with the view of ascertaining whether or not the course of training offered in this State is adequate and productive of the best results for the youth of the State: Now, therefore, Be it resolved by the House of Representatives, the Senate concurring : Section 1. That the Governor of North Carolina be, and he is hereby, authorized, empowered and requested to appoint a commission to be known as "The Governor's Commission on Education," to study the problems set out in the preamble to this Resolution. The Commission herein authorized shall consist of two representatives from State sup- ported institutions of higher learning, two representatives from the State public school system, one representative from the Department of Public Instruction, and six representatives from the agricultural, business and professional life of the State. Any vacancy occurring on the Commission herein authorized by reason of death, resignation, or otherwise, shall be filled by appointment by the Governor. 82 Public School Laws Sec. 2. The Commission herein authorized shall make a study of the problems herein referred to, and any and all other problems which may be revealed as a result of their investigation, the solution of which would improve the educational system of this State, and shall make a written report of its findings and recommendations to the General Assembly of one thousand nine hundred and forty-three, and shall have the same printed and ready for distribution thirty days before the beginning of the one thousand nine hundred and forty-three Session. Sec. 3. Membership on the Commission authorized by this Resolution shall be deemed a "commissioner for a special purpose" within the mean- ing of Article XIV, Section seven, of the Constitution, which prohibits double office holding, and membership thereon may be composed of per- sons holding other public office, in case the Governor appoints such a public officer to the Commission. Sec 4. The Governor shall be ex officio Chairman of the Commission hereby created, with power to call said Commission together at any time he deems it advisable for the purpose of organization and further investi- gation of the subjects herein mentioned. The Commission shall elect a secretary and such other officers as it may deem necessary. They may sit in public hearings, invite to the said hearings persons of experience in the subject of the investigation and others whose suggestions may be helpful, and may receive both written and oral presentation upon these subjects. The heads of all State departments, institutions and administrative school units are instructed to cooperate with the Commission and to make available to said Commission all information and the services of such of their personnel as may, in the judgment of the Governor, be helpful to the Commission. The Commission is further authorized to accept the time and services of any Federal or State educational authorities or agencies, within or without the State of North Carolina, when, in the opinion of the Com- mission, such services may be helpful to the investigation. Sec. 5. This Resolution shall be in full force and effect from and after its ratification. In the General Assembly read three times and ratified, this the thir- teenth day of March, 1941. * Kl- B 00034037907 FOR USE ONLY IN THE NORTH CAROLINA COLLECTION Form No. A-368, Rev. 8/95