Part I Revise Eligibility Requirements for Opportunity Scholarships
Amends GS 115C-562.1 by repealing subsection (3a) and replacing it with subsection (3d), redefining an eligible student as a student residing in North Carolina who has not yet received a high school diploma and who meets certain requirements. Requires an eligible student to satisfy one of the following criteria: (1) full-time attendance at a NC public school or a Department of Defense (DOD) school located in NC; (2) receipt of a previous scholarship grant; (3) attainment of the age to start school; (4) placement in foster care; (5) adoption one year or less before the scholarship grant application; (6) parent or legal guardian who is active duty or who has been discharged within 12 months prior to application; or (7) both enrollment in a nonpublic school during spring semester prior to the school year for which the student is applying and was previous enrollment in either a NC public school or a DOD school located in NC. Prohibits an eligible student from enrolling in a postsecondary institution earning 12 hours of academic credit. Requires the eligible student to either reside in a household with an income level not exceeding 200% of the federal free or reduced-price lunch eligibility threshold or is in foster care. Excludes distributions from the estate of a decedent the calculation of income and the household income of the foster parent.
Adds definitions of full-time student (a student enrolled exclusively in a nonpublic school whose parents have released the local school administrative unit of all obligations to educate the eligible student while the student is receiving a scholarship grant) and part-time student (a student enrolled part time in a public school and part time in a nonpublic school).
Amends GS 115C-562.2 to require the State Education Assistance Authority (the Authority) to begin awarding scholarship grants on March 15. Sets out the priority for awarding the grants, with first priority given to eligible students who received a grant for the school year prior to the application, and 50% of the remaining funds disbursed to eligible students residing in households with an income level not exceeding 200% of the federal free or reduced-price lunch eligibility threshold, and the rest disbursed to all other eligible students.
Replaces subsections (b2), (b3), and (b4) with subsection (a1) which sets out the criteria for determining the amount of the scholarship grant. Limits the grant to 90% for full-time students and 45% for part-time students of the average State per pupil allocation for eligible students residing in households with an income level not exceeding 200% of the federal free or reduced-price lunch eligibility threshold. Limits the grant to 90% for full-time students and 45% for part-time students of the required tuition and fees for the nonpublic school the student will attend for eligible students residing in households with an income level exceeding 200% of the federal free or reduced-price lunch eligibility threshold. Allows a nonpublic school to include tuition and fees for books, transportation, equipment, or other items required by the nonpublic school. Prohibits scholarship grants from exceeding either the average State per pupil allocation or the required tuition and fees for the nonpublic school, as applicable to the eligible student.
Part II Increase Accountability and Reporting Standards for Nonpublic Schools Receiving Opportunity Scholarships
Clarifies in GS 115C-562.2(b2) that scholarship grants shall be awarded in monthly installments. Requires for grant recipients in grades three through 12 (was, grades three, eight, or 11) that the Authority provide to the nonpublic school an amount equal to the cost of the required nationally standardized test.
Amends GS 115C-562.5, requirements for nonpublic schools that accept eligible students receiving scholarship grants. Expands the requirement for nonpublic schools to annually provide documentation of their tuition and fees to the Authority and to the Division of Nonpublic Education (the Division). Requires the Division to publish this information on its website. Limits the increase of tuition and fees to 5% per school year. Requires the nonpublic school to adopt a criminal background check policy that mirrors the local board of education policy. Requires compliance with a standard course of study as adopted by the State Board of Education and administration of all tests required by the State Board of Education for students in grades three and higher. Does not prohibit the nonpublic school from administering additional tests. Repeals subsubsections (4)a., b., and c. Replaces the term financial review with audit and requires the nonpublic school to report the results of an audit to the Joint Legislative Education Oversight Committee by December 31. Requires a school receiving more than $250,000 to publish its expenditures in the Uniform Education Reporting System. Requires nonpublic schools to provide annually all the attendance records from the previous school year of students receiving scholarship grants.
Adds requirements in subsections (9) through (15), including teacher qualifications, minimum days (185) and hours (1,025) of required instruction, maintenance of an operating reserve of four months’ worth of expenses, allowance of the copying and inspection of all contracts to which the nonpublic school is a party, the contact information of the owner of the school to be published on the school website, compliance with state laws regarding expulsion of students, and reports to the Authority on any expulsions from the nonpublic school.
Amends subsection (c) to require nonpublic schools enrolling more than 25 students to report to the Authority testing data for eligible students in grades three and higher and to require the Authority to publish such data on its website.  Amends subsection (c1) prohibiting discrimination to remove the reference to 42 USC 2000d and replace it with race, color, national origin, sex, sexual orientation, disability, or religion of any student or their family members. Expands to the State Board of Education, in addition to the Authority, the power to determine a nonpublic school’s compliance with the requirements.
Amends GS 115C-562.8(d) to repeal subsubsection (1) and require any unexpended funds at the end of a fiscal year to be carried forward for one fiscal year.
Effective July 1, 2025, and applies to the 2025-2026 school year.

Statutes affected:
Filed: 115C-562.1, 115C-562.2, 115C-562.5, 115C-562.8
Edition 1: 115C-562.1, 115C-562.2, 115C-562.5, 115C-562.8