Students First Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 2
SENATE BILL 990
Education/Higher Education Committee Substitute Adopted 5/13/26

Short Title: Students First Act. (Public)
Sponsors:
Referred to:
May 4, 2026
*S990-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE PROTECT CAMPUS SURVI VORS ACT AND TO 2
APPROPRIATE FUNDS TO THE UNIVERSITY OF NORTH CAROLINA TO SUPPORT 3
PUBLIC EDUCATION. 4
The General Assembly of North Carolina enacts: 5
6
PART I. PROTECT CAMPUS SURVIVORS ACT 7
SECTION 1.(a) Chapter 132 of the General Statutes is amended by adding a new 8
section to read: 9
"§ 132 -1.3B. Records of student disciplinary proceedings held by public institutions of 10
higher education. 11
(a) Definitions. – The following definitions apply in this section: 12
(1) Disciplinary proceeding. – Any complaint, investigation, adjudication, or 13
resolution of an alleged violation of or noncompliance with any disciplinary 14
or conduct rules or other polic ies that apply to students adopted by a public 15
institution of higher education. 16
(2) Personally identifiable information. – As defined in regulations adopted under 17
the Family Educational Rights and Privacy Act, 20 U.S.C. § 1232g. 18
(3) Public institution of higher education. – The University of North Carolina 19
System Office, a constituent institution of The University of North Carolina 20
that is an institution of higher education , the Community College s System 21
Office, and a community college. 22
(b) Confidential Information . – A public record, as defined by G.S. 132-1, does not 23
include any record of a disciplinary proceeding that reveals persona lly identifiable information 24
about a student enrolled in a public institution of higher education, even if releasing the record 25
would be permitted by the Family Educational Rights and Privacy Act, 20 U.S.C. § 1232g. 26
(c) Exception for General Information. – This section does not limit the disclosure of a 27
public record that does not contain personally identifiable information from a student disciplinary 28
proceeding, including aggregated data, guidelines, instructions, or summaries." 29
SECTION 1.(b) G.S. 116-43.17 reads as rewritten: 30
"§ 116-43.17. Confidentiality of research data, records, and information of a proprietary 31
nature.certain records. 32
The following are not public records under Chapter 132 of the General Statutes: 33
(1) Research data, records, or information of a proprietary nature, produced or 34
collected by or for state institutions of higher learning in the conduct of 35
commercial, scientific, or technical research whe re the data, records, or 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 990-Second Edition
information has not been patented, published, or copyrighted are not public 1
records as defined by G.S. 132-1.copyrighted. 2
(2) Any record of a disciplinary proceeding that reveals persona lly identifiable 3
information about a student, as provided in G.S. 132-1.3B." 4
SECTION 1.(c) G.S. 115D-78 reads as rewritten: 5
"§ 115D -78. Access to information and public records; small business counseling 6
information. 7
(a) In accordance with Chapter 132 of the General Statutes, all rules, regulation s and 8
public records of the State Board of Community Colleges, the Community Colleges System 9
Office, and local boards of trustees shall be available for examination and reproduction on 10
payment of fees by any person. 11
(a1) Any record of a disciplinary procee ding that reveals persona lly identifiable 12
information about a student is not a public record, as provided in G.S. 132-1.3B. 13
…." 14
SECTION 1.(d) This section is effective when it becomes law and applies to requests 15
for records of a disciplinary proceeding that reveals personally identifiable information about a 16
student submitted on or after that date. 17
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PART II. WEIGHTED STUDENT FUNDING FORMULA WORK GROUP 19
SECTION 2.(a) The Office of Learning Research at the North Carolina 20
Collaboratory shall establish a work group (Work Group) of experts in public education finance, 21
including the Department of Public Instruction, North Carolina Business Leaders for Education, 22
doing business as BEST NC (Business for Educational Success and Transformation), and other 23
relevant stakeholders, to study and develop a strategy to transition North Carolina to a weighted 24
student funding model for kindergarten through twelf th grade public education. No later than 25
July 15, 2027, the Work Group shall report to the Joint Legislative Education Oversight 26
Committee on a three-year strategy to transition from the current allotment-based funding model 27
to a weighted student funding f ormula model, including policy, funding, messaging, and 28
technical assistance needed for leaders of local school administrative units and schools within 29
those units. The strategy shall include an examination of all of the following: 30
(1) Options to do at least the following under the new funding formula: 31
a. Consolidate non -teaching support funds into a per pupil -based 32
allotment with significant flexibility. 33
b. Transition teacher pay from a position allotment to a dollar allotment 34
based on average daily membership in order to maintain student-based 35
funding with greater average teacher pay transparency and flexibility. 36
c. Reassign all project- or resource-based funding into a set of designated 37
line items. 38
d. Determine whether need -based funds can be consolidated and 39
transitioned into a per pupil figure. 40
e. Report on spending and provide any other needed accountability for 41
the use of State funds. 42
(2) Whether to transition from the North Carolina Department of Public 43
Instruction to the State Education Assistance Au thority the responsibility of 44
disbursing any funds to local school administrative units. 45
SECTION 2.(b) There is appropriated from the General Fund to the Board of 46
Governors of The University of North Carolina the sum of three hundred thousand dollars 47
($300,000) in nonrecurring funds for the 2026 -2027 fiscal year to be allocated to the North 48
Carolina Collaboratory for the Office of Learning Research to establish the Work Group to 49
develop a strategy to transition North Carolina to a weighted student funding model for 50
kindergarten through twelfth grade public education in accordance with this section. 51
General Assembly Of North Carolina Session 2025
Senate Bill 990-Second Edition Page 3
1
PART III. STUDENT-BASED EDUCATIONAL WALLET PILOT PROGRAM 2
SECTION 3.(a) Program; Purpose. – There is established the Student -Based 3
Educational Wallet Pilot Program (Pilot) for the 2027-2028 fiscal year to be administered by the 4
State Education Assistance Authority (Authority) in coordination with one public school unit 5
selected by the Authority to participate in the Pilot. The purpose of the Pilot is to foster 6
personalized learning pathways and expand access to educational enrichment by providing funds 7
for high school students to participate in eligible activities and credit-bearing activities. The goal 8
of the Pilot is to establish a streamlined process for studen ts to participate in credit -bearing 9
activities. 10
SECTION 3.(b) Definitions. – The following definitions shall apply in this section: 11
(1) Approved provider. – An entity, including a business, nonprofit, vendor, or 12
other organization or institution, that has been approved by the participating 13
public school unit to provide eligible activities, including credit -bearing 14
activities, for participating students. 15
(2) Credit-bearing activity. – An eligible activity that is approved by the 16
participating public school unit as providing instruction that qualifies a 17
participating student to receive one or more academic credits. 18
(3) Eligible activity. – A program, course, or experience occurring outside the 19
traditional classroom that is provided to a participating student by an approved 20
provider and approved by the participating public school unit, including the 21
following: 22
a. Career and technical education programs, including student 23
internships. 24
b. Art, music, and other performance-based activities. 25
c. Science, technology, engineering, and mathematics competitions or 26
research programs. 27
d. Leadership and civic engagement programs. 28
e. Athletic and other physical education programs that have some 29
instructional component. 30
(4) Eligible student. – Any student who meets all of the following criteria: 31
a. Submits an application to the Authority to participate in the Pilot. 32
b. Is enrolled in the high school selected by the participating public 33
school unit to participate in the Pilot. 34
(5) Parent. – A parent, legal guardian, or legal custodian of an eligible student. 35
(6) Participating public school unit. – The public school unit identified by the 36
Authority to participate in the Pilot. 37
(7) Participating student. – An eligible student who is admitted to participate in 38
the Pilot by the Authority and whose parent signs the parental agreement. 39
(8) Qualifying educational expenses. – Tuition, fees, and materials for approved 40
providers for eligible activities, including credit-bearing activities. 41
(9) Student-based educational wallet or SBEW. – An electronic account provided 42
to a parent for the purpose of holding funds awarded by the Authority for a 43
participating student to engage in eligible activities in accordance with the 44
Pilot. 45
SECTION 3.(c) Selection of Participating Unit. – No later than August 1, 2026, the 46
Authority shall establish a process to select one participating public school unit for the Pilot. No 47
later than January 1, 2027, the participating public school unit shall provide the Authority with 48
the name of the high school in the unit that will be participating in the Pilot and a list of (i) eligible 49
students, (ii) eligible activities, and (iii) approved providers. The participating public school unit 50
shall only select one high school in the unit to participate in the Pilot. The part icipating public 51
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Page 4 Senate Bill 990-Second Edition
school unit shall enter into a data -sharing agreement with the Authority for the purpose of 1
administering the Pilot and for the protection of student data. 2
SECTION 3.(d) Selection of Participating Students. – No later than February 2, 3
2027, the Authority shall make available applications to eligible students for the award of funds 4
for a SBEW to be used for qualifying educational expenses pursuant to the Pilot. Applications 5
shall be submitted electronically. No later than April 15, 2027, th e Authority shall admit any 6
eligible student to the Pilot for the 2027 -2028 school year who submitted a timely application 7
and whose parent signed the parental agreement. If the funds provided for the Pilot are 8
insufficient to admit all eligible students, the Authority may adopt a lottery process for the 9
selection of participating students. 10
SECTION 3.(e) Award of Funds. – The Authority shall award funds for the 11
2027-2028 school year to participating students on a per student basis in an amount of up to three 12
hundred ninety-five dollars ($395.00) per student. Grant funds shall only be used for qualifying 13
educational expenses in accordance with the parental agreement. The award of funds through a 14
SBEW shall be subject to the execution of a parental agreement as required by subsection (f) of 15
this section. The parent shall then receive an electronic account for the receipt of funds for 16
qualifying educational expenses incurred in the 2027-2028 school year. Requests for qualifying 17
educational expenses are subje ct to a preapproval process established by the Authority prior to 18
the disbursement of funds from the electronic account. An expense report shall not be required 19
for any expenses that have been preapproved by the Authority and the participating public school 20
unit. 21
SECTION 3.(f) Parental Agreement; Use of Funds. – The Authority shall provide 22
the parent of an eligible student who applies to participate in the Pilot with a written agreement 23
to be signed and returned to the Authority prior to receiving funds. T he agreement shall be 24
submitted to the Authority electronically. The parent shall not designate any entity or individual 25
to execute the agreement on the parent's behalf. A parent or eligible student's failure to comply 26
with this section shall result in a f orfeit of funds and those funds may be awarded to another 27
eligible student. The parent shall agree to use the funds deposited into a SBEW only for the 28
qualifying educational expenses of the eligible student. These funds shall not be used for 29
noneducational expenses, including personal items or travel. 30
SECTION 3.(g) Credit Review. – Notwithstanding any policy or rule adopted by the 31
State Board of Education to the contrary, the participating public school unit shall determine 32
whether an eligible activity con stitutes a credit -bearing activity. The Authority and the 33
participating public school unit shall establish a reporting time line for the Authority to provide 34
data on the use of funds for each semester per participating student. The participating public 35
school unit shall establish a review process for whether a student's participation in a 36
credit-bearing activity is sufficient for the student to receive credit. As part of the review process, 37
the student may submit information to the participating public scho ol unit to demonstrate the 38
student's proficiency in the subject area, including portfolios, performance assessments, and 39
competency-based evaluations. 40
SECTION 3.(h) Administration. – The Authority, in consultation with the 41
participating public school unit , shall administer the student -based educational wallets for 42
participating students. As part of this process, the Authority shall establish an online portal for 43
students and parents to track account balances, review eligible activities, and submit 44
reimbursement requests. The Authority may contract with a private financial management firm 45
or institution to manage SBEWs in accordance with the Pilot. The Authority may audit a random 46
sampling of SBEWs to ensure compliance with the Pilot and may contract with an independent 47
entity to conduct these audits. The Authority may remove a parent or eligible student from the 48
program and close a SBEW for failure to comply with the terms of the parental agreement, for 49
failure to comply with applicable laws, or because the student is no longer an eligible student. Of 50
the funds allocated to the Authority to award funds under the Pilot, the Authority may retain fifty 51
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Senate Bill 990-Second Edition Page 5
thousand dollars ($50,000) for administrative costs associated with the Pilot, including 1
contracting with non-State entities for administration of certain components of the Pilot. 2
SECTION 3.(i) Miscellaneous. – The following shall apply to the Pilot: 3
(1) Public records. – Applications to participate in the Pilot and personally 4
identifiable information related to e ligible students receiving funds shall not 5
be a public record under Chapter 132 of the General Statutes. For the purposes 6
of this subdivision, personally identifiable information means any information 7
directly related to a student or members of a student's household, including 8
the name, birthdate, address, social security number, telephone number, email 9
address, or any other information or identification number that would provide 10
information about a specific student or members of a specific student's 11
household. 12
(2) No refunds to account holders. – An approved provider shall not refund or 13
rebate any funds to a parent or participating student in any manner. The parent 14
shall notify the Authority if such refund is required. 15
SECTION 3.(j) Report. – No later than February 15, 2028, the North Carolina 16
Collaboratory, in consultation with the Authority and the participating public school unit, shall 17
study and report to the Joint Legislative Education Oversight Committee on the implementation 18
of the Pilot and the impact of the Pilot on student success. At a minimum, the report shall include 19
the following additional information: 20
(1) The number of students who used funds provided to a SBEW and the amount 21
of funds used. 22
(2) The credit-bearing opportunities purchased with SBEW funds and the number 23
of credits earned. 24
(3) All approved providers receiving funds for providing eligible activities under 25
the Pilot and the amount of funding received by each approved provider. 26
SECTION 3.(k) Funds. – There is appropriated from the General Fund to the Board 27
of Governors of The University of North Carolina the sum of four hundred forty -five thousand 28
dollars ($445,000) in nonrecurring funds for the 2026-2027 fiscal year to be allocated to the State 29
Education Assistance Authority to admi nister the Student -Based Educational Wallet Pilot 30
Program in accordance with this section. These funds shall not revert at the end of the 2026-2027 31
fiscal year but shall remain available until the end of the 2027-2028 fiscal year. 32
33
PART IV. EFFECTIVE DATE 34
SECTION 4. Except as otherwise provided, this act becomes effective July 1, 2026. 35