H.B. 32
GENERAL ASSEMBLY OF NORTH CAROLINA
Jan 28, 2021
SESSION 2021 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40029-MKfa-1B
Short Title: Equity in Opportunity Act. (Public)
Sponsors: Representatives Arp, Blackwell, Lambeth, and Saine (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO ENACT THE EQUITY IN OPPORTUNITY ACT.
3 The General Assembly of North Carolina enacts:
4
5 PART I. OPPORTUNITY SCHOLARSHIP GRANT PROGRAM
6 SECTION 1.1.(a) G.S. 115C-562.1(3)a.3. reads as rewritten:
7 "3. Is entering either kindergarten or the eligible to enter
8 kindergarten, first grade.grade, or second grade pursuant to
9 Article 25 of this Chapter. A child who is the age of four on or
10 before April 16 is eligible to attend the following school year
11 if the principal, or equivalent, of the school in which the child
12 seeks to enroll finds that the student meets the requirements of
13 G.S. 115C-364(d) and those findings are submitted to the
14 Authority with the child's application."
15 SECTION 1.1.(b) Subsection (a) of this section applies beginning with applications
16 for scholarship funds for the spring semester of the 2021-2022 school year.
17 SECTION 1.1.(c) Any student who meets the following requirements shall qualify
18 as an eligible student and shall be eligible to receive a scholarship for the 2021-2022 school year
19 pursuant to Part 2A of Article 39 of Chapter 115C of the General Statutes:
20 (1) Was enrolled in a North Carolina public school or a Department of Defense
21 Elementary and Secondary School located in North Carolina for the fall
22 semester of the 2019-2020 school year.
23 (2) Was enrolled in a nonpublic school that meets the requirements of Part 1, 2,
24 or 3 of Article 39 of this Chapter for the spring semester of the 2019-2020
25 school year and the entire 2020-2021 school year.
26 (3) Meets the eligibility requirements of G.S. 115C-562.1(3)a1. and b.
27 (4) Submits a scholarship application for the 2021-2022 school year.
28 A student who becomes eligible for a scholarship in the 2021-2022 school year solely
29 due to this subsection shall receive first priority in award of scholarships in the same manner as
30 those previously awarded scholarships.
31 SECTION 1.2.(a) G.S. 115C-562.1(3)a. is amended by adding a new
32 sub-sub-subdivision to read:
33 "7. Is a child who meets both of the following:
34 I. Was enrolled in a nonpublic school that meets the
35 requirements of Part 1 and Part 2 of this Article during
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 General Assembly Of North Carolina Session 2021
1 the spring semester prior to the school year for which
2 the student is applying.
3 II. Was enrolled for the fall semester prior to the spring
4 semester of the school year in which the student
5 enrolled in the nonpublic school in one of the
6 following:
7 A. A North Carolina public school.
8 B. A Department of Defense Elementary and
9 Secondary School established pursuant to 10
10 U.S.C. § 2164 and located in North Carolina."
11 SECTION 1.2.(b) G.S. 115C-562.2(b) reads as rewritten:
12 "(b) Scholarship grants awarded to eligible students residing in households with an income
13 level not in excess of the amount required for the student to qualify for the federal free or
14 reduced-price lunch program shall be for amounts of up to four thousand two hundred dollars
15 ($4,200) per year. be, per year per eligible student, in an amount of up to seventy percent (70%)
16 of the average State per pupil allocation in the prior fiscal year. Scholarship grants awarded to
17 eligible students residing in households with an income level in excess of the amount required
18 for the student to qualify for the federal free or reduced-price lunch program shall be for amounts
19 of not more than ninety percent (90%) of the required tuition and fees for the nonpublic school
20 the eligible child will attend. Tuition and fees for a nonpublic school may include tuition and fees
21 for books, transportation, equipment, or other items required by the nonpublic school. No
22 scholarship grant shall exceed four thousand two hundred dollars ($4,200) exceed, per year per
23 eligible student, an amount equal to seventy percent (70%) of the average State per pupil
24 allocation in the prior fiscal year and no scholarship grant shall exceed the required tuition and
25 fees for the nonpublic school the eligible student will attend."
26 SECTION 1.2.(c) G.S. 115C-562.3 reads as rewritten:
27 "§ 115C-562.3. Verification of eligibility.eligibility; information from other State agencies.
28 …
29 (b) Household members of applicants for scholarship grants shall authorize the Authority
30 to access information needed for verification efforts held by other State agencies, including the
31 Department of Revenue, the Department of Health and Human Services, and the Department of
32 Public Instruction. The Department of Public Instruction shall provide the Authority with public
33 school enrollment information to establish eligibility pursuant to G.S. 115C-562.1(3)a. as
34 needed.
35 (c) By December 1 of each year, the Department of Public Instruction shall provide the
36 Authority the average State per pupil allocation for that fiscal year to determine the maximum
37 scholarship amount for eligible students to be awarded in the following fiscal year in accordance
38 with G.S. 115C-562.2(b)."
39 SECTION 1.2.(d) Subsections (a), (b), and (c) of this section apply beginning with
40 applications for scholarship funds for the 2022-2023 school year.
41 SECTION 1.3.(a) G.S. 115C-562.2(b), as amended by Section 1.2(a) of this section,
42 reads as rewritten:
43 "(b) Scholarship grants awarded to eligible students residing in households with an income
44 level not in excess of the amount required for the student to qualify for the federal free or
45 reduced-price lunch program shall be, per year per eligible student, in an amount of up to seventy
46 percent (70%) eighty percent (80%) of the average State per pupil allocation in the prior fiscal
47 year. Scholarship grants awarded to eligible students residing in households with an income level
48 in excess of the amount required for the student to qualify for the federal free or reduced-price
49 lunch program shall be for amounts of not more than ninety percent (90%) of the required tuition
50 and fees for the nonpublic school the eligible child will attend. Tuition and fees for a nonpublic
51 school may include tuition and fees for books, transportation, equipment, or other items required
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1 by the nonpublic school. No scholarship grant shall exceed, per year per eligible student, an
2 amount equal to seventy percent (70%) eighty percent (80%) of the average State per pupil
3 allocation in the prior fiscal year and no scholarship grant shall exceed the required tuition and
4 fees for the nonpublic school the eligible student will attend."
5 SECTION 1.3.(b) This section applies beginning with applications for scholarship
6 funds for the 2023-2024 school year.
7 SECTION 1.4.(a) G.S. 115C-562.8 reads as rewritten:
8 "§ 115C-562.8. The Opportunity Scholarship Grant Fund Reserve.
9 (a) The Opportunity Scholarship Grant Fund Reserve is established as a reserve to be
10 administered by the Board of Governors of The University of North Carolina for the purpose of
11 allocating funds to the Authority for the award of scholarship grants in accordance with this Part.
12 The Reserve shall consist of monies appropriated from the General Fund to the Reserve by the
13 General Assembly and any interest accrued to it thereon. These funds shall be used to award
14 scholarship grants to eligible students for the school year that begins in the fiscal year following
15 the fiscal year in which the appropriation is made to the Reserve. The Board of Governors shall
16 only use monies in the Reserve in accordance with the purposes set forth in this section. Funds
17 appropriated in a particular fiscal year to be used for the award of scholarships in the following
18 fiscal year that are unexpended at the end of the fiscal year after the fiscal year in which the funds
19 were appropriated shall be carried forward for one fiscal year and may be used for the purposes
20 set forth in this section. The Authority shall not expend funds that are carried forward for a fiscal
21 year until the funds from the prior year appropriation to be used to award scholarships are
22 expended. Funds carried forward pursuant to this section that have not been spent within one
23 fiscal year shall revert to the General Fund.be used in accordance with subsection (d) of this
24 section.
25 …
26 (d) Any unexpended funds at the end of a fiscal year from the funds carried forward for
27 one fiscal year pursuant to subsection (a) of this section shall be used as follows:
28 (1) Up to five hundred thousand dollars ($500,000) shall be used by the Authority
29 to contract with a nonprofit corporation representing parents and families for
30 outreach and scholarship education and application assistance for parents and
31 students pursuant to Part 5 of this Article.
32 (2) Any remaining funds shall revert to the General Fund."
33 SECTION 1.4.(b) Article 39 of Chapter 115C of the General Statutes is amended by
34 adding a new Part to read:
35 "Part 5. Information for Parents and Students on Nonpublic School Scholarship Programs.
36 "§ 115C-567.1. Outreach and assistance for parents and students.
37 (a) The State Education Assistance Authority, in its administration of scholarship
38 programs for eligible students pursuant to Part 2A of this Article, Article 41 of this Chapter, and
39 Part 1H of Article 9 of this Chapter may contract with a nonprofit corporation representing
40 parents and families for outreach and scholarship education, program promotion, and application
41 assistance for parents and students. The Authority shall issue a request for proposals in order to
42 enter into a contract with a nonprofit corporation that meets the following requirements during
43 the term of the contract:
44 (1) Be a nonprofit corporation organized pursuant to Chapter 55A of the General
45 Statutes and comply at all times with the provisions of section 501(c)(3) of the
46 Internal Revenue Code.
47 (2) Employ sufficient staff who have demonstrated a capacity of direct parent and
48 family outreach, program promotion, and procedural knowledge to assist
49 parents through scholarship application processes and implement a
50 scholarship grant program, including by doing the following:
51 a. One-on-one parent and family engagement.
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1 b. Scholarship education and public awareness.
2 (3) Comply with the limitations on lobbying set forth in section 501(c)(3) of the
3 Internal Revenue Code.
4 (4) Have no State officer or employee serving on the board of the nonprofit.
5 (5) Conduct at least quarterly meetings of the board of directors of the nonprofit
6 at the call of its chair.
7 (b) The terms of the contract between the Authority and a nonprofit corporation shall
8 require that the nonprofit (i) maintain the confidentiality of any information provided by the
9 Authority for parents and students as directed by the Authority and (ii) not disseminate
10 information to third parties without written parental consent. During the term of the contract
11 provided for in this section, the Authority shall include on scholarship applications a statement
12 for parents to indicate nonconsent for sharing information with a nonprofit corporation.
13 (c) Notwithstanding any other provision of law, during the term of the contract provided
14 for in this section, the Authority may share the name, address, e-mail, and telephone number of
15 the parent of any student applicant, unless the parent indicates that the information should not be
16 shared."
17 SECTION 1.4.(c) Subsection (a) of this section becomes effective June 30, 2021.
18 SECTION 1.5. G.S. 115C-562.8(c) reads as rewritten:
19 "(c) Of the funds allocated to the Authority to award scholarship grants under this Part,
20 the Authority may retain the lesser of up to four two and one-half percent (4%) (2.5%) of the
21 funds appropriated or one million five hundred thousand dollars ($1,500,000) each fiscal year
22 for administrative costs associated with the scholarship grant program."
23
24 PART II. PERSONAL EDUCATION STUDENT ACCOUNTS FOR CHILDREN WITH
25 DISABILITIES
26 SECTION 2.1.(a) Article 41 of Chapter 115C of the General Statutes reads as
27 rewritten:
28 "Article 41.
29 "Personal Education Savings Accounts.Student Accounts for Children with Disabilities.
30 "§ 115C-590. North Carolina Personal Education Savings Account Student Accounts for
31 Children with Disabilities Program established.
32 There is established the North Carolina Personal Education Savings Student Accounts for
33 Children with Disabilities Program to provide the option for a parent to better meet the individual
34 educational needs of the parent's child.
35 "§ 115C-591. Definitions.
36 The following definitions apply in this Article:
37 (1) Authority. – Defined in G.S. 116-201.
38 (1a) Child with a disability. – Meets at least one of the following criteria:
39 a. A child who meets the definition in G.S. 115C-106.3(1).
40 b. A child who was enrolled in a public school during the previous
41 semester and was provided a section 504 (29 U.S.C. § 794) plan by the
42 public school. The Authority shall not count actual days of attendance
43 to determine whether a child was enrolled in a public school for the
44 previous semester for the purposes of eligibility under sub-subdivision
45 c. of subdivision (3) of this section.
46 (2) Division. – The Division of Nonpublic Education, Department of
47 Administration.
48 (2a) Educational technology. – As defined annually by the Authority, an item,
49 piece of equipment, material, product, or system which may be purchased
50 commercially off the shelf, modified, or customized and that is used primarily
51 for educational purposes for a child with a disability.
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1 (3) Eligible student. – A student residing in North Carolina who has not yet
2 received a high school diploma and who meets all of the following
3 requirements:
4 a. Is eligible to attend a North Carolina public school pursuant to
5 G.S. 115C-366.Article 25 of this Chapter. A child who is the age of
6 four on or before April 16 is eligible to attend the following school
7 year if the principal, or equivalent, of the school in which the child
8 seeks to enroll finds that the student meets the requirements of
9 G.S. 115C-364(d) and those findings are submitted to the Authority
10 with the child's application.
11 b. Has not been enrolled in a postsecondary