H.B. 993
GENERAL ASSEMBLY OF NORTH CAROLINA
May 2, 2024
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH10551-MTa-222
Short Title: OPS Moratorium/OPS & PESA Accountability. (Public)
Sponsors: Representative Prather.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO IMPOSE A MORATORIUM ON THE AWARD OF NEW OPPORTUNITY
3 SCHOLARSHIPS AND TO ENACT OTHER ACCOUNTABILITY MEASURES FOR
4 OPPORTUNITY SCHOLARSHIPS AND PERSONAL EDUCATION STUDENT
5 ACCOUNTS.
6 The General Assembly of North Carolina enacts:
7
8 PART I. MORATORIUM AND ACCOUNTABILITY MEASURES FOR
9 OPPORTUNITY SCHOLARSHIPS
10 SECTION 1.(a) Beginning with the 2024-2025 fiscal year, the State Education
11 Assistance Authority shall not award any scholarship grant funds under Part 2A of Article 39 of
12 Chapter 115C of the General Statutes to new persons who did not receive scholarship grant funds
13 in the prior school year. It is the intent of the General Assembly to eliminate the program for
14 awarding scholarship grants under Part 2A of Article 39 of Chapter 115C of the General Statutes
15 beginning in the 2036-2037 school year or once all current recipients become ineligible for the
16 receipt of scholarship grants.
17 SECTION 1.(b) Subsection (b) of G.S. 115C-562.2 is reenacted.
18 SECTION 1.(c) G.S. 115C-562.1, as amended by Section 8A.6 of S.L. 2023-134,
19 reads as rewritten:
20 "§ 115C-562.1. Definitions.
21 The following definitions apply in this Part:
22 …
23 (3a) Eligible student. – A student residing in North Carolina who has not yet
24 received a high school diploma and who meets all of the following
25 requirements:
26 a. Is eligible to attend a North Carolina public school pursuant to Article
27 25 of this Chapter. A child who is the age of 4 on or before April 16 is
28 eligible to attend the following school year if the principal, or
29 equivalent, of the school in which the child seeks to enroll finds that
30 the student meets the requirements established by the Authority
31 pursuant to G.S. 115C-562.2(d) and those findings are submitted to the
32 Authority.
33 b. Has not been enrolled in a postsecondary institution as a full-time
34 student taking at least 12 hours of academic credit.
35 c. Has not been placed in a nonpublic school or facility by a public
36 agency at public expense.
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 General Assembly Of North Carolina Session 2023
1 d. Received a scholarship grant for the school year prior to the school
2 year for which the student is applying.
3 …."
4 SECTION 1.(d) G.S. 115C-562.2, as amended by Section 8A.6(c) of S.L. 2023-134
5 and subsection (b) of this section, reads as rewritten:
6 "§ 115C-562.2. Scholarship grants.
7 (a) The Authority shall make available no later than February 1 annually applications to
8 eligible students for the award of scholarship grants to attend any nonpublic school on a full- or
9 part-time basis. Information about scholarship grants and the application process shall be made
10 available on the Authority's Web site. website. Beginning March 15, the Authority shall begin
11 awarding scholarship grants to students who have applied by March 1 in the following order:
12 (1) Eligible students who received a scholarship grant for the school year prior to
13 the school year for which the students are applying.
14 (2) Eligible students qualifying for a scholarship grant in the amount provided
15 under subdivision (1) of subsection (b2) of this section.
16 (3) Eligible students qualifying for a scholarship grant in the amount provided
17 under subdivision (2) of subsection (b2) of this section.
18 (4) Eligible students qualifying for a scholarship grant in the amount provided
19 under subdivision (3) of subsection (b2) of this section.
20 (5) All other students.March 1.
21 (b) Scholarship grants awarded to eligible students residing in households with an income
22 level not in excess of the amount required for the student to qualify for the federal free or
23 reduced-price lunch program shall be, per year per eligible student, in an amount of up to ninety
24 percent (90%) as a full-time student or up to forty-five percent (45%) as a part-time student of
25 the average State per pupil allocation for average daily membership in the prior fiscal year.
26 Scholarship grants awarded to eligible students residing in households with an income level in
27 excess of the amount required for the student to qualify for the federal free or reduced-price lunch
28 program shall be for amounts of not more than ninety percent (90%) of the required tuition and
29 fees as a full-time student or forty-five percent (45%) of the required tuition and fees as a
30 part-time student for the nonpublic school the eligible child will attend. Tuition and fees for a
31 nonpublic school may include tuition and fees for books, transportation, equipment, or other
32 items required by the nonpublic school. No scholarship grant shall exceed, per year per eligible
33 student, an amount equal to ninety percent (90%) for a full-time student or forty-five percent
34 (45%) for a part-time student of the average State per pupil allocation for average daily
35 membership in the prior fiscal year, and no scholarship grant shall exceed the required tuition
36 and fees for the nonpublic school the eligible student will attend.
37 …
38 (b2) Scholarship grants shall be awarded to eligible students as follows:
39 (1) For students residing in households with an income level not in excess of the
40 amount required for the student to qualify for the federal free or reduced-price
41 lunch program, per year per eligible student, an amount of up to one hundred
42 percent (100%) of the average State per pupil allocation for average daily
43 membership in the prior fiscal year.
44 (2) For students residing in households with an income level between the amount
45 required for the student to qualify for the federal free or reduced-price lunch
46 program and not in excess of two hundred percent (200%) of that amount, per
47 year per eligible student, an amount of up to ninety percent (90%) of the
48 average State per pupil allocation for average daily membership in the prior
49 fiscal year.
50 (3) For students residing in households with an income level of between two
51 hundred percent (200%) of the amount required for the student to qualify for
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1 the federal free or reduced-price lunch program and not in excess of four
2 hundred fifty percent (450%) of that amount, per year per eligible student, an
3 amount of up to sixty percent (60%) of the average State per pupil allocation
4 for average daily membership in the prior fiscal year.
5 (4) For all students, per year per eligible student, an amount of up to forty-five
6 percent (45%) of the average State per pupil allocation for average daily
7 membership in the prior fiscal year, unless the student qualifies for a higher
8 amount under this subsection.
9 (b3) Tuition and fees for a nonpublic school may include tuition and fees for books,
10 transportation, equipment, or other items required by the nonpublic school.
11 (b4) No scholarship grant shall exceed, per year per eligible student, an amount equal to
12 one hundred percent (100%) of the average State per pupil allocation for average daily
13 membership in the prior fiscal year, and no scholarship grant shall exceed the required tuition
14 and fees for the nonpublic school the eligible student will attend.
15 (b5) In addition to the amount of the scholarship grant, for any student receiving a
16 scholarship grant in grades three, eight, or 11, the Authority shall provide to the nonpublic school
17 an amount equal to the cost of the nationally standardized test required to be administered as
18 provided in G.S. 115C-562.5.
19 …."
20 SECTION 1.(e) G.S. 115C-562.5, as amended by Sections 7.80, 8A.6, 8A.12, and
21 8A.16 of S.L. 2023-134, reads as rewritten:
22 "§ 115C-562.5. Obligations of nonpublic schools accepting eligible students receiving
23 scholarship grants.
24 (a) A nonpublic school that accepts eligible students receiving scholarship grants shall
25 comply with the following:
26 (1) Provide Annually provide to the Authority documentation for required tuition
27 and fees charged to the student by the nonpublic school. A nonpublic school
28 that accepts eligible students receiving scholarship grants shall not increase
29 tuition in a given year by more than the change in the Consumer Price Index,
30 as calculated and reported by the Federal Bureau of Labor Statistics, that is
31 reported in the calendar year in which the tuition increase would occur.
32 (2) Provide to the Authority a criminal background check conducted for the staff
33 member with the highest decision-making authority, as defined by the bylaws,
34 articles of incorporation, or other governing document. Information provided
35 to the Authority in accordance with this subdivision is privileged information
36 and is not a public record but is for the exclusive use of the Authority.
37 (3) Provide to the parent or guardian of an eligible student, whose tuition and fees
38 are paid in whole or in part with a scholarship grant, an annual written
39 explanation of the student's progress, including the student's scores on
40 standardized achievement tests.
41 (4) Administer, at least once in each school year, tests as provided in this
42 subdivision. Administer each school year all tests required by the State Board
43 of Education pursuant to G.S. 115C-174.11(c) for students in grades three and
44 higher in a local school administrative unit. Test performance data for students
45 shall be submitted to the Authority by July 15 of each year. The nonpublic
46 school shall retain this data for five years, and the Authority may audit the
47 nonpublic school to ensure compliance with the retention requirement. Test
48 performance data reported to the Authority or collected by the Authority under
49 this subdivision is not a public record under Chapter 132 of the General
50 Statutes. Statutes, to the extent the data contains personally identifiable
51 information. Tests shall be administered to all eligible students enrolled in
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1 grades three and higher whose tuition and fees are paid in whole or in part
2 with a scholarship grant as follows:
3 a. The nationally standardized test designated by the Authority in grades
4 three and eight.
5 b. The ACT in grade 11.
6 c. A nationally standardized test or other nationally standardized
7 equivalent measurement selected by the chief administrative officer of
8 the nonpublic school in all other grades four and higher. For grades
9 four through seven, the nationally standardized test or other equivalent
10 measurement selected must measure achievement in the areas of
11 English grammar, reading, spelling, and mathematics. For grades nine,
12 10, and 12, the nationally standardized test or other equivalent
13 measurement selected must measure either (i) achievement in the areas
14 of English grammar, reading, spelling, and mathematics or (ii)
15 competencies in the verbal and quantitative areas.grant. Nothing in
16 this subdivision shall prohibit a nonpublic school from administering
17 additional tests to its students.
18 (5) Provide to the Authority graduation rates of the students receiving scholarship
19 grants grants, including four-year cohort graduation rates, in a manner
20 consistent with nationally recognized standards.Title I of the Elementary and
21 Secondary Education Act of 1965, as amended, and any associated federal
22 regulations.
23 (6) Contract with a certified public accountant to perform a financial review, an
24 audit, consistent with generally accepted methods of accounting or any other
25 comprehensive basis of accounting recognized by the American Institute of
26 Certified Public Accountants (AICPA) for each school year in which the
27 school enrolls 70 or more students receiving scholarship grants or scholarship
28 funds awarded by the Authority.accepts students receiving one hundred
29 thousand dollars ($100,000) or more in scholarship grants awarded under this
30 Part. If a school accepts students receiving less than one hundred thousand
31 dollars ($100,000), it shall contract pursuant to this subdivision for an audit
32 every three years. A nonpublic school shall report the results of an audit by
33 December 31 of the year in which the audit is conducted.
34 (7) Maintain a school facility within the State where in-person instruction is
35 provided. This subdivision does not prohibit a school from offering
36 remote-only courses of instruction in addition to in-person instruction.
37 (8) Provide the following information annually to the Division:
38 a. Name and address of the school, including physical location address.
39 A school with more than one physical location shall establish a
40 separate notice of intent for each physical location and shall provide
41 all information required by this subdivision for each physical location.
42 b. The name of the owners and chief administrator.administrator,
43 including contact information.
44 c. Number of students in attendance at the school as of October 1.
45 d. All attendance records of students receiving scholarship grants from
46 the previous school year.
47 e. Documentation of a completed fire inspection in the previous 365
48 days.
49 (9) For any child with a disability who is a recipient of scholarship funds, educate
50 that child in accordance with his or her Individualized Education Program
51 (IEP) and in compliance with IDEA, as defined in G.S. 115C-106.3(6), and
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1 applicable policies adopted by the State Board of Education for local school
2 administrative units under Article 9 of Chapter 115C of the General Statutes.
3 (10) Comply with the requirements of Article 8C of this Chapter, including the
4 following:
5 a. School Risk Management Plan. – The nonpublic school, in
6 coordination with local law enforcement agencies, shall adopt a
7 School Risk Management Plan (SRMP) relating to incidents of school
8 violence. In constructing and maintaining these plans, the nonpublic
9 school shall utilize the School Risk and Response Management
10 System established pursuant to G.S. 115C-105.49A. These plans are
11 not considered a public record as the term "public record" is defined