The proposed amendments to House Bill No. 1540 aim to create a new chapter in Title 15.1 of the North Dakota Century Code, establishing an education savings account program for students not enrolled in public schools or homeschool programs. The bill defines key terms such as "eligible student," "education service provider," and "participating school," while outlining the responsibilities of parents and the program administrator. Parents must agree not to enroll their eligible student in public school or supervise home education, and they are required to use the funds exclusively for qualified educational expenses. The management and auditing of these accounts will be handled by the Bank of North Dakota, which will make quarterly deposits based on household income levels, ensuring accountability and compliance with health and safety laws.

Additionally, the bill introduces amendments focusing on assessment and reporting requirements for eligible students, mandating that they take state assessments or nationally norm-referenced tests in mathematics and English language arts, with costs covered by the department. Test results must be reported in a way that allows for demographic data aggregation, and the department will provide public access to this information after three years. The program manager will be responsible for informing parents about participating schools and managing applications year-round. The bill also emphasizes the autonomy of nonpublic schools and education service providers, stating they are not agents of the state and should not face additional regulations beyond those necessary for the program. A total of $21.7 million is appropriated to the Bank of North Dakota for the program, which is set to take effect on July 1, 2026.