Ban Online For-Profit Charters.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1012

Short Title: Ban Online For-Profit Charters. (Public)
Sponsors: Senators Chitlik and Applewhite (Primary Sponsors).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1012-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROHIBIT T HE USE OF FOR -PROFIT CHARTER MANAGEMENT 2
COMPANIES, TO REQUIR E STUDENTS THAT ATTE ND REMOTE CHARTER 3
ACADEMIES TO COMPLET E STATE-MANDATED ASSESSMENTS IN-PERSON IN 4
THE PRESENCE OF A SO CIAL WORKER, TO LIMI T REMOTE CHARTER 5
ACADEMY CHARTER RENE WAL TERMS TO ONE YEA R, TO REQUIRE YEARLY 6
FINANCIAL AUDITS OF REMOTE CHARTER ACADE MIES, AND TO PROHIBI T 7
THE RENEWAL OF A CHA RTER FOR LOW -PERFORMING REMOTE CHARTER 8
ACADEMIES. 9
The General Assembly of North Carolina enacts: 10
SECTION 1.(a) Part 2 of Article 14A of Chapter 115C of the General Statutes is 11
amended by adding a new section to read: 12
"§ 115C-218.92. Nonprofit management organizations. 13
A charter school shall not be managed by or obtain services from for-profit education 14
management organization s or charter management organization s. Charter schools may be 15
managed by or obtain services from nonprofit education management organizations or charter 16
management organizations." 17
SECTION 1.(b) G.S. 115C-218.122(c) reads as rewritten: 18
"(c) A remote charter academy may shall require students to attend in person to fulfill 19
State-mandated student assessments.assessments in accordance with G.S. 115C-174.17. 20
(c1) A remote charter academy may conduct optional in-person meetings between students 21
and instructors or parents and instructors at a charter school facility." 22
SECTION 1.(c) Part 2 of Article 10A of Chapter 115C of the General Statutes is 23
amended by adding a new section to read: 24
"§ 115C-174.17. In-person testing for remote charter students. 25
The Department of Public Instruction shall develop an in -person testing program to ena ble 26
all students that attend a fully remote charter school to complete all State-mandated assessments 27
in person. As part of the assessment program for remote charter students, the Department shall: 28
(1) Establish at least 10 regional testing centers, spread across the State to ensure 29
all students can report for assessments with minimal travel burdens. 30
(2) Contract for personnel to administer and proctor the assessments. Contract 31
administrators and proctors may be other public school unit employees but 32
shall not be employees of the remote charter school that the students being 33
assessed attend. 34
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1012-First Edition
(3) Hire or contract for a minim um of one social worker to be p resent at every 1
assessment. Students shall be informed of the availability of social workers at 2
the assessments." 3
SECTION 1.(d) G.S. 115C-218.123(b) reads as rewritten: 4
"(b) The Review Board shall review and approve a charter or charter modification for the 5
creation of a remote charter academy that meets the requirements established in this Part for a 6
term of five years. one year. The Review Board shall approve a minimum of two statewide remote 7
charter academies that meet the qualifications of this Part for operation beginning with the 8
2026-2027 school year and thereafter." 9
SECTION 1.(e) G.S. 115C-218.124 reads as rewritten: 10
"§ 115C-218.124. Operation and renewal of remote charter academies. 11
… 12
(b) Each approved remote charter academy shall receive a school code. A nonprofit that 13
has a school code for in -person instruction in addition to a school code for a remote charter 14
academy may provide all financial reporting for both school codes jointly in a form directed by 15
the Department of Public Instruction. shall provide separate financial reports for each school 16
code. As a condition of renewal, a remote charter academy shall submit with its renewal 17
application a financial audit for the previous year. 18
(c) A nonprofit may apply for renewal of the remote charter academy for additional terms 19
of five years. one year. The Review Board shall consider compliance with the requirements of 20
this Part and success of the remote charter academy in the prior five years in determining whether 21
to approve a request for renewal of a remote charter academy. 22
(d) A remote charter academy that is identified as low -performing is not eligible for 23
charter renewal." 24
SECTION 2.(a) There is appropriated from the General Fund to the Department of 25
Public Instruction the sum of one hundred tho usand dollars ($100,000) in recurring funds 26
beginning with the 2026 -2027 fiscal year for the Department to hire one or more 27
High-Performing Placement Coaches. The purpose of the High -Performing Placement Coaches 28
shall be to counsel and guide families throu gh school transition when a student is attending a 29
remote charter academy that is not renewed as a result of being low-performing. 30
SECTION 2.(b) There is appropriated from the General Fund to the Department of 31
Public Instruction the sum of sixty-two thousand dollars ($62,000) in recurring funds beginning 32
with the 2026-2027 fiscal year for the Department to establish the in-person assessment program 33
as required under G.S. 15C-174.17, as enacted by this act. 34
SECTION 3. This act becomes effective July 1, 2026. Section 1(a) of this act applies 35
to contracts entered into on or after July 1, 2026. Sections 1(b) through (e) of this act apply to 36
applications for new charters or renewals submitted on or after July 1, 2026. 37