Part I.

Amends GS 116-43.17, which deems research data, records, and information of a proprietary nature of state institutions of higher learning as not public records. Expands the statute to deem personally identifiable student disciplinary records as not public records, even if release is permitted by the Family Educational Rights and Privacy Act (FERPA). Defines personally identifiable student disciplinary records as any records that are made, received, or maintained by a public institution of higher education that contain personally identifiable information of or about a student which relate to a complaint, investigation, or resolution of an alleged violation of or noncompliance with the disciplinary or conduct rules or other policy of the institution. Includes the UNC System Office, constituent higher education institutions of UNC, the Community Colleges System Office, and community colleges, and any individual who attends or has attended such an institution and about whom records are maintained. Defines personally identifiable information.

Amends GS 115D-78 (relating to community colleges) and GS 132-1.2 (governing public records) to provide that personally identifiable student disciplinary records are not public records.

Part II.

Directs the Office of Learning Research (Office) at the NC Collaboratory to establish a work group of experts in public education finance and relevant stakeholders to study and develop a strategy to transition North Carolina to a weighted student funding model for K-12th grade public education. Directs the work group to report to the specified NCGA committee on a three-year strategy to transition from the allotment-based funding model to a weighted student funding formula model. Details the requirements for the identified strategy, including five options that must be considered under the new formula, and whether distribution of funds to local school administrative units should be transitioned from the NC Department of Public Instruction to the State Education Assistance Authority (Authority).

Appropriates $300,000 from the General Fund to the UNC Board of Governors (BOG) for 2026-27 to be allocated to the NC Collaboratory for the Office to establish the work group to develop a transition strategy.

Part III.

Establishes the Student-Based Educational Wallet Pilot Program (pilot) for 2027-28 to be administered by the Authority in coordination with one public school unit. States the purpose of the pilot and the goal to establish a streamlined process for students to participate in credit-bearing activities. Defines nine terms. Requires the Authority to select one participating school unit by August 1, 2026, and the unit to identify the high school in the unit that will participate in the pilot by January 1, 2027, with a list of eligible students, eligible activities, and approved providers. Requires the unit to enter into a data-sharing agreement with the Authority for administration of the pilot. Requires applications be made available to eligible students by February 2, 2027, for award of funds for a student-based educational wallet (SBEW) to be used for qualified educational expenses defined to include tuition, fees, and materials for approved providers for eligible activities. Defines eligible activities to include specified programs, courses, or experiences outside of the traditional classroom by an approved provider of the unit. Requires admission of students into the pilot for the 2027-28 school year by April 15, 2027, subject to a signed parental agreement. Provides for a lottery process if funds are insufficient to admit all eligible students. 

Caps awards at $395 and details limitations, including requiring a preapproval process for qualifying educational expenses. Details requirements of the parental agreement and review of whether an eligible activity is credit-bearing. Provides for administration of the pilot through an online portal and authorizes the Authority to contract with a firm or institution to manage SBEWs. Authorizes the Authority to audit compliance via a random sampling and permits contracting with an independent entity to conduct the audits. Allows the Authority to remove a parent or eligible student from the pilot and close an SBEW for noncompliance. Authorizes the Authority to use up to $50,000 of funds allocated for the pilot for administration. Deems pilot applications and personally identifiable information of students not public record. Prohibits approved providers from issuing refunds to parents. Directs the Collaboratory to consult with the Authority and the unit to report to the specified NCGA committee on the pilot by February 15, 2028. Specifies required content of the report.

Appropriates $445,000 from the General Fund to the UNC Board of Governors for 2026-27 to be allocated to the Authority to administer the pilot. Specifies that the funds remain available until the end of the 2027-28 fiscal year.

Part IV. 

Effective July 1, 2026.