Private schools accepting state scholarships would report finances and student results

Participating private schools would hire a certified public accountant to audit their finances and send the results to state officials. The State Auditor would review at least three completed school audits yearly and report to lawmakers on taxpayer spending and scholarship students' academic results. Schools would send audit results to the State Education Assistance Authority, which oversees the scholarships, and the State Auditor by December 31 of the audit year. School audit rules would take effect July 1, 2026, and apply beginning in 2026–2027. The Auditor's duty would start when the bill becomes law, with reports due each March 15.

Participating schools would report their charges and school operations to state officials each year. These duties would cover private schools accepting Opportunity Scholarships, which help pay eligible students' tuition and fees. Schools would report separately for each location, including attendance, teacher licensing, accreditation, curriculum, fire inspections, and scholarship students' previous public school attendance. Reports about scholarship students with disabilities and individual education plans would include whether their education follows the referenced disability education rules. Schools would report only where federal law permits and students cannot be identified. These rules would take effect July 1, 2026, and apply beginning in 2026–2027. That year's tuition report would also cover 2024–2025 and 2025–2026.

Participating schools would check teachers' criminal histories and prepare for school violence with local emergency agencies. These rules would cover private schools accepting Opportunity Scholarship students. Schools would apply teacher screening policies uniformly. They could hire teachers conditionally while checks are pending, but would need checks before making unconditional job offers. When another North Carolina school asks, schools would disclose whether an employee's criminal history was relevant to that employee's resignation or dismissal. Schools would share building diagrams and entrance keys with local law enforcement, and emergency information with state emergency officials. Safety plans and emergency response information would not be public records. These rules would take effect July 1, 2026, and apply beginning with the 2026–2027 school year.

Participating schools would test scholarship students yearly and report test results and graduation rates to the State Education Assistance Authority. Testing would cover students in grade three and above whose tuition and fees are paid partly or fully by Opportunity Scholarships. Scholarship students would take state-designated national tests in grades three through eight, the ACT in grade 11, and school-selected national tests in grades nine, 10, and 12. Individual test reports would not be public records. Public reporting would cover combined results for grades three through eight and 11 only where a grade has more than 25 scholarship students and results do not identify students. Schools would report graduation rates, including the share of scholarship students who graduate within four years, using the referenced federal rules. These rules would take effect July 1, 2026, and apply beginning in 2026–2027. Schools would submit test results each July 15.

The University of North Carolina's Office of Learning Research would recommend national tests and study testing spread throughout the school year. The study would consider tests suitable for both scholarship students and public school students. It would not itself require public schools to use them. Researchers would recommend one test per grade for grades three through eight and compare those tests with state learning standards. The State Education Assistance Authority would designate the recommended tests for participating private schools. The one-time funding would cover fiscal year 2026–2027. The study report would be due December 31, 2026, with recommendations considering scholarship students beginning in 2027–2028.