AN ACT to prohibit the use of for‑profit charter management companies, to require students that attend remote charter academies to complete state‑mandated ASSESSMENTS in‑person in the presence of a social worker, to limit remote charter academy charter renewal terms to one year, to require yearly financial audits of remote charter academies, and to prohibit the renewal of a charter for low‑performing remote charter academies.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  Part 2 of Article 14A of Chapter 115C of the General Statutes is amended by adding a new section to read:

§ 115C‑218.92.  Nonprofit management organizations.

A charter school shall not be managed by or obtain services from for‑profit education management organizations or charter management organizations. Charter schools may be managed by or obtain services from nonprofit education management organizations or charter management organizations.

SECTION 1.(b)  G.S. 115C‑218.122(c) reads as rewritten:

(c)      A remote charter academy may shall require students to attend in person to fulfill State‑mandated student assessments.assessments in accordance with G.S. 115C‑174.17.

(c1)      A remote charter academy may conduct optional in‑person meetings between students and instructors or parents and instructors at a charter school facility.

SECTION 1.(c)  Part 2 of Article 10A of Chapter 115C of the General Statutes is amended by adding a new section to read:

§ 115C‑174.17.  In‑person testing for remote charter students.

The Department of Public Instruction shall develop an in‑person testing program to enable all students that attend a fully remote charter school to complete all State‑mandated assessments in person. As part of the assessment program for remote charter students, the Department shall:

(1)        Establish at least 10 regional testing centers, spread across the State to ensure all students can report for assessments with minimal travel burdens.

(2)        Contract for personnel to administer and proctor the assessments. Contract administrators and proctors may be other public school unit employees but shall not be employees of the remote charter school that the students being assessed attend.

(3)        Hire or contract for a minimum of one social worker to be present at every assessment. Students shall be informed of the availability of social workers at the assessments.

SECTION 1.(d)  G.S. 115C‑218.123(b) reads as rewritten:

(b)      The Review Board shall review and approve a charter or charter modification for the creation of a remote charter academy that meets the requirements established in this Part for a term of five years. one year. The Review Board shall approve a minimum of two statewide remote charter academies that meet the qualifications of this Part for operation beginning with the 2026‑2027 school year and thereafter.

SECTION 1.(e)  G.S. 115C‑218.124 reads as rewritten:

§ 115C‑218.124.  Operation and renewal of remote charter academies.

…

(b)        Each approved remote charter academy shall receive a school code. A nonprofit that has a school code for in‑person instruction in addition to a school code for a remote charter academy may provide all financial reporting for both school codes jointly in a form directed by the Department of Public Instruction.shall provide separate financial reports for each school code. As a condition of renewal, a remote charter academy shall submit with its renewal application a financial audit for the previous year.

(c)        A nonprofit may apply for renewal of the remote charter academy for additional terms of five years. one year. The Review Board shall consider compliance with the requirements of this Part and success of the remote charter academy in the prior five years in determining whether to approve a request for renewal of a remote charter academy.

(d)       A remote charter academy that is identified as low‑performing is not eligible for charter renewal.

SECTION 2.(a)  There is appropriated from the General Fund to the Department of Public Instruction the sum of one hundred thousand dollars ($100,000) in recurring funds beginning with the 2026‑2027 fiscal year for the Department to hire one or more High‑Performing Placement Coaches. The purpose of the High‑Performing Placement Coaches shall be to counsel and guide families through school transition when a student is attending a remote charter academy that is not renewed as a result of being low‑performing.

SECTION 2.(b)  There is appropriated from the General Fund to the Department of Public Instruction the sum of sixty‑two thousand dollars ($62,000) in recurring funds beginning with the 2026‑2027 fiscal year for the Department to establish the in‑person assessment program as required under G.S. 15C‑174.17, as enacted by this act.

SECTION 3.  This act becomes effective July 1, 2026. Section 1(a) of this act applies to contracts entered into on or after July 1, 2026. Sections 1(b) through (e) of this act apply to applications for new charters or renewals submitted on or after July 1, 2026.