Part I.

Amends the definition of eligible students, as it applies to opportunity scholarship grants, set out in GS 115C-562.1 to include a student residing in the state who is eligible to enter kindergarten or first grade under Article 25 of the Chapter (previously, this particular eligibility criteria was limited to students entering either prekindergarten or the first grade). Adds that a child who is four on or before April 16 is eligible to attend the following school year with the respective principal (or the equivalent) submitting findings of the student satisfying the specified requirements with the child's application to the State Education Assistance Authority (Authority). Expands the statutory eligibility criteria for eligible students for scholarships to include a child residing in the state who was enrolled in a nonpublic school that meets specified state law the spring semester prior to the school year for which the student is applying, and was enrolled for the entire school year prior to the school year in which the student was enrolled in a nonpublic school, in a public school, or Department of Defense school in North Carolina. Revises the income threshold for eligibility to now require that the student reside in a household with an income level not in excess of 175% (was 150%) of the amount required for the student to qualify for the federal free or reduced-price lunch program. 

Amends GS 115C-562.2, modifying the scholarship grant cap (per year, per eligible student) to an amount up to the average per pupil allotment amount the State Board of Education (State Board) allocated to a charter school pursuant to GS 115C-218.105(a)(1), plus the allocation for children with limited English proficiency and the allocation for children with disabilities, in the prior fiscal year (was, up to $4,200). Reduces the total number of scholarships the Authority can award, beginning with the 2022-23 school year, from 2,000 to 1,500. 

Amends GS 115C-562.3 to require the Department of Public Instruction (DPI) to provide the Authority with public school enrollment information needed for determining eligibility under the established criteria. 

Makes the above provisions apply beginning with the 2022-23 school year.

Amends GS 115C-562.8, which governs the Opportunity Scholarship Grant Fund Reserve. Adds provisions to require the Authority to use up to $500,000 of funds appropriated in a particular fiscal year to be used for the award of scholarships in the following fiscal year that are unexpended at the end of the fiscal year in which the funds were appropriated to contract with a nonprofit representing parents and families for outreach and scholarship education and application assistance for parents and students, with remaining funds required to be carried forward for one fiscal year and used to award scholarships pursuant to the statute before reverting any unexpended funds to the General Fund (current law only provides for carrying forward unexpended appropriations for one year to award scholarship grants). Effective June 30, 2021.

Enacts GS 115C-567.1 to authorize the Authority to contract with a nonprofit corporation representing parents and families for marketing, outreach, and scholarship application assistance for parents and students regarding the scholarship programs for eligible students. Details requirements of potential contractors, including complying with lobbying limitations. Provides for the contracting process and terms of the contract, including confidentiality requirements. Provides for the Authority sharing certain contact information of parents during the contract, with an opt-out option for parents. 

Amends GS 115C-562.8, modifying the amount of funds the Authority is authorized to use of its State-appropriated funding for administrative costs of the scholarship grant program, now authorizing the Authority to retain the lesser of 4% of the funds appropriated or $2 million each fiscal year, rather than the lesser of up to 4% of the funds appropriated or $1.5 million each fiscal year. 

Part II.

Amends Article 41 of GS Chapter 115C as follows. Renames the North Carolina Personal Education Savings Accounts Program as the North Carolina Personal Education Student Accounts for Children with Disabilities Program. Defines eligible student as a student residing in state who has not yet received a high school diploma and who: (1) is eligible to attend a North Carolina public school under Article 25 of GS Chapter 115C (was, under GS 115C-336) and specifies that a child who is four years old on or before April 16 is eligible to attend the following school year if the principal of the school where the child seeks to enroll finds that the student meets the requirements of GS 115C-364(d) (concerning enrollment of gifted and mature four-year-olds in kindergarten) and submits those findings with the child’s application; (2) has not been enrolled in a postsecondary institution as a full-time student taking at least 12 hours of credit; (3) is a child with a disability, as defined by statutory cross-reference; and (4) has not been placed in a nonpublic school or facility by a public agency at public expense. Amends the definition of Personal Education Savings Account (now, Personal Education Student Account) to provide that they are electronic accounts (was, bank account) holding scholarship funds. Adds and defines a Part 1 or Part 2 nonpublic school as a nonpublic school that meets the requirements of Part 1 (governing private church schools) or Part 2 (governing qualified nonpublic schools) of Article 39, as identified and deemed eligible by the Division of Nonpublic Education. Adds and defines GS 115C-562.5 compliant school to mean a Part 1 or Part 2 nonpublic school that consents to comply with the requirements of GS 115C-562.5, which sets forth obligations of nonpublic schools accepting eligible students receiving scholarship grants. Adds and defines educational technology.

Requires that the scholarships be awarded for applications received by March 1 of each year (removes the requirement that the recipients be selected beginning March 15). Changes the amount of the scholarship which was $9,000 per eligible student to $8,000 per eligible student for the school year or $4,000 for eligible part-time students. Requires funds remaining on a debit card or in an electronic account at the end of a school year to be returned to the Authority. Adds a new provision awarding an eligible student with a scholarship of up to $17,000 for each school year if the student has one or more of the following as a primary or secondary disability at the time of application: autism; hearing impairment; moderate or severe intellectual or developmental disability; multiple permanent orthopedic impairments; or visual impairment (makes a conforming repeal of the special education scholarship program for children with disabilities in Part IH of Article 9 of GS Chapter 115C). Allows students qualifying for these funds to carry forward no more than $4,500 of funds remaining on a debit card or electronic account at the end of the school year upon renewal of the account.

Makes changes throughout that conform with the repeal of Part IH of Article 9 of GS Chapter 115C, which is effective July 1, 2022.

Limits the use of the scholarship funds to tuition and qualifying education expenses (as defined in GS 115C-595). Now distributes the funds each semester instead of quarterly; makes conforming changes. Requires that parents receive a debit card or electronic account at the beginning of the school year instead of fiscal year.

Amends GS 115C-594 by no longer requiring the verification of 6% of applications annually. Now requires applicants, rather than household members of applicants, to authorize the Authority to access information needed for verification efforts. 

Amends GS 115C-595 as follows. Sets out the procedure under which the Authority disburses funds for tuition to the school and sets out conditions under which reimbursement of tuition is allowed. 

Amends GS 115C-597 to require the Authority to provide scholarship recipients with the annual list of defined educational technology for which scholarship funds can be used. Now authorizes the Authority to retain up to 4% of the funds appropriated for the program each fiscal year for administrative costs (was, up to $250,000). 

Enacts new GS 115C-599 requiring the State Board to ensure that local education agencies: (1) timely conduct evaluations requested by a child's parent or guardian of suspected children with disabilities and (2) provide assessments for continuing eligibility to identified children with disabilities receiving scholarship funds at the request of the parent or guardian. Requires the Authority, in conjunction with the Department of Public Instruction, to annually analyze past trends in scholarship data to ensure that the amount of funds transferred each fiscal year for reevaluations by local school administrative units of eligible students are sufficient and based on actual cost.

Gives priority in awarding a scholarship for the 2022-23 school year to a student who was awarded scholarship funds for a PESA under Article 41 of GS Chapter 115C for the 2021-22 school year or a student who received a scholarship under Part 1H of Article 9 of GS Chapter 115C for the 2021-22 school year, if the student applies by March 1, 2022.

The above provisions become effective July 1, 2021, and apply to applications for scholarship funds beginning with the 2022-23 school year.

Provides that beginning with the 2022-23 fiscal year, of the funds appropriated from the General Fund to the BOG, the sum of (1) $13,043,166 in recurring funds for the Special Education Scholarship Program for Children with Disabilities established pursuant to Part 1H of Article 9 of GS Chapter 115C and (2) $3 million in recurring funds for the Personal Education Savings Account program must instead be appropriated to the Personal Education Student Account Fund Reserve. Amends GS 115C-555(4), GS 115C-567.1(a), and Section 5(b) of SL 2013-364, as amended, to conform to the repeal of Part 1H of Article 9 of GS Chapter 115C. Effective July 1, 2022.

Makes conforming changes to GS 105-153.5(b)(12), concerning deduction from income tax the amount deposited to a personal education student account. Applies to taxable years beginning on or after January 1, 2022.

Part III.

Provides that the act is effective on the date the act becomes law, unless otherwise provided.