Part I, Accountability and Reporting for Opportunity Scholarships.

Amends GS 115C-562.5 as follows. Adds to or otherwise changes requirements of nonpublic schools that accept eligible students who receive scholarship grants. Makes annual the tuition and fees documentation required to be provided to the State Education Assistance Authority (Authority). Requires nonpublic schools adopt a policy requiring criminal history checks under GS 115C-332 of all teachers, applied uniformly for all applicants before extending an unconditional job offer. Permits a nonpublic school to employ an applicant conditionally while a decision regarding the applicant and their criminal history are pending. Permits policies that allow for periodic checks of criminal histories of teachers. Requires that a nonpublic school that receives an inquiry from any other public school unit or nonpublic school in the state to indicate if an employee’s criminal history was relevant to the employee’s resignation or dismissal.

Modifies provision (a)(5) to include among information provided by nonpublic schools to the Authority graduation rates of students receiving scholarship grants, including four-year cohort graduation rates, in a manner consistent with Title I of the Elementary and Secondary Education Act of 1965, as amended, and any associated federal regulations.

Requires the administration of nationally standardized tests in grades 3 through 8 (was, 3 and 8).

Modifies provision (a)(6) to subject nonpublic schools to an audit in any year in which the school accepts students receiving $100,000 or more in scholarship grants awarded under this part. Nonpublic schools accepting students receiving less than $100,000 must contract pursuant to this provision for an audit every three years. Audit reports must be shared by the nonpublic school with the Authority by the end of the calendar year in which the audit is conducted.

Expands the information nonpublic schools must provide annually to the Division of Nonpublic Education, Department of Administration (Division), to include the following:

• All attendance records of students receiving scholarship grants from the previous school year.
• The percentage of teachers with a teacher license.
• Whether the nonpublic school is accredited and, if so, the identity of that accreditor.
• Documentation of a competed fire inspection in the previous 365 days.
• Curriculum used by the nonpublic school for each grade level.
• The number of students receiving scholarship grants for the first time who attended a public school unit in the previous school year.
• The number of students receiving scholarship grants who attended a public school unit in the previous school year.
• Requires nonpublic schools to report to the Authority the number of children enrolled who receive scholarship funds and who have a disability and an Individualized Education Plan (IEP). For any such children, the school must also report whether it is educating each child in compliance with GS 115C-106.3(6) and applicable policies adopted by the State Board of Education (SBE) for local school administrative units under GS Chapter 115C, Article 9. The information in this paragraph should only be reported to the extent it does not violate federal law and to the extent it can be provided without revealing personally identifiable information of a student.

Directs nonpublic schools to comply with the requirements of GS Chapter 115C, Article 8C, including:

• School Risk Management Plan. – The nonpublic school, in coordination with local law enforcement agencies, shall adopt a School Risk Management Plan (SRMP) relating to incidents of school violence. In constructing and maintaining these plans, the nonpublic school must use the School Risk and Response Management System. These plans are not considered a public record and are not subject to inspection and examination under GS 132-6.
• Schematic diagrams and school crisis kits. – The nonpublic school shall provide schematic diagrams and keys to the main entrance of school facilities to local law enforcement agencies, in addition to implementing the provisions in GS 115C-105.52.
• School safety exercises. – At least once a year, the nonpublic school shall hold a full school-wide lockdown exercise with local law enforcement and emergency management agencies that are part of the school's SRMP.
• Safety information provided to the Department of Public Safety, Division of Emergency Management. – The nonpublic school shall provide the following: (i) schematic diagrams, including digital schematic diagrams, and (ii) emergency response information requested by the Division for the SRMP. The schematic diagrams and emergency response information are not considered public records as the term public record is defined under GS 132-1 and shall not be subject to inspection and examination under GS 132-6.

Expands requirement found in provision (c)(1) that a nonpublic school enrolling more than 25 students in any grade whose tuition and fees are paid at least in part by scholarship grant shall report to the Authority on the aggregate standard test performance of eligible students in grades three through eight and 11 (was previously grades three, eight, and 11).

Amends Section 3J.23 of SL 2024-57 to expand the enumerated requirements to apply for students in third grade through eighth grade (was previously for those in third and eighth grade).

Part II, Require the State Auditor to Annually Review Audits of At Least Three Opportunity Scholarship Schools.

Amends GS 147-64.6(c) to add as an annual responsibility of the State Auditor (Auditor) to review at least three completed audits of nonpublic schools that are reported to the Auditor pursuant to GS 115C-562.5(a)(6). Requires the Auditor to then report each year no later than March 15 to the Joint Legislative Education Oversight Committee the results of this review, including the uses of taxpayer funds by the nonpublic schools and academic outcomes of students receiving scholarship grants under GS Chapter 115C, Article 39, Part 2A.

Part III

Effective when it becomes law, unless otherwise provided.