GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 303

Short Title:  GPAC/Aid to Private Coll. Focus.	(Public)
─────────────────────────────────────── 
Sponsors: (by request) Representatives Hensley, Blue, Barnes, Diamont, Hackney, H. Hunter, G. Miller, Nesbitt, and Robinson.
─────────────────────────────────────── 
Referred to:  Education.
─────────────────────────────────────── 

February 25, 1993

A BILL TO BE ENTITLED
AN ACT TO IMPLEMENT A RECOMMENDATION OF THE GOVERNMENT PERFORMANCE AUDIT COMMITTEE TO FOCUS STATE AID FOR STUDENTS ATTENDING PRIVATE COLLEGES.
The General Assembly of North Carolina enacts:
Section 1.  The General Assembly finds that the historical justification for State aid to students in private institutions is still valid and that the level of North Carolina's support to private education is comparable to those of other states with strong public university systems.  The General Assembly further finds that sound education policy should drive adjustments to private higher education appropriations rather than budget availability and legislative relations, that sound accountability criteria should be required of private institutions in order for North Carolina students attending these institutions to be eligible to receive State aid, and that State aid to private institutions should be focused on students with demonstrated financial need.
Sec. 2.  It is the policy of the General Assembly that all State aid to North Carolina students attending private North Carolina colleges and universities directly improve education quality, extend its benefits, and encourage economical use of State resources by increasing emphasis on accountability.
Sec. 3.  The Board of Governors of The University of North Carolina, in consultation with the Area Health Education Centers and the Office of Rural Health, Department of Human Resources, shall review the Medical Student Aid Program to determine if the State's medical professional needs are still being reasonably met by the Program and whether the original critical needs to which the Program was designed to respond still remain.  The Board of Governors shall report the results of this review, together with any recommendations, to the General Assembly by April 1, 1994.
Sec. 4.  It is the policy of the General Assembly that State funding for North Carolina students with demonstrated financial need in private higher education be a percentage of the average educational and general appropriations for North Carolina students with demonstrated financial need attending public universities.
Sec. 5.  Private colleges and universities that have North Carolina students with demonstrated financial need who are eligible to receive State funds shall meet appropriate criteria for the use of these funds.  In addition to any other criteria that may be set by the General Assembly, these criteria include:
(1)	Maintenance of acceptable minimum admissions requirements, as established by the Board of Governors of The University of North Carolina in consultation with the North Carolina Association of Private Colleges and Universities; and 
(2)	Maintenance of acceptable student achievement and development levels.
Private colleges and universities that receive State funding for North Carolina students with  demonstrated financial need shall make an accountability report annually to the General Assembly by April 1.
Sec. 6.  (a) The Legislative Tuition Grant Program is eliminated.
(b) It is the intent of the General Assembly to redesign and expand the Contractual Scholarship Program to ensure that State funds for North Carolina students go only to students with demonstrated financial need and that North Carolina students with demonstrated financial need attending private colleges and universities are given aid in an amount that is a percentage of the average educational and general appropriations for North Carolina students with demonstrated financial need attending public universities.
(c) Effective July 1, 1993, the Contractual Scholarship Program shall be administered by the State Education Assistance Authority.  The Authority shall ensure that the intent of this section is carried out and that the allocations from the Program are made to private institutions based on the number of North Carolina students with demonstrated financial need attending these institutions.
(d) Effective July 1, 1993, G.S. 116-19 reads as rewritten:
"§ 116-19.  Contracts with private institutions to aid North Carolina students.
In order to encourage and assist private institutions to continue to educate North Carolina students, the State Education Assistance Authority may enter into contracts with the institutions under the terms of which an institution receiving any funds that may be appropriated pursuant to this section would agree that, during any fiscal year in which the funds were received, the institution would provide and administer scholarship funds for North Carolina students with demonstrated financial need in an amount at least equal to the amount paid to the institution, pursuant to this section, during the fiscal year. Under the terms of the contracts the State Education Assistance Authority would agree to pay to the institutions, subject to the availability of funds, a fixed sum of money for each North Carolina student with demonstrated financial need enrolled at the institutions for the regular academic year.  This sum shall be determined by appropriations made from time to time by the General  Assembly pursuant to this section. Funds appropriated pursuant to this section shall be paid by the State Education Assistance Authority on certification of the institution showing the number of North Carolina students with demonstrated financial need enrolled at the institution as of October 1 of any year for which funds may be appropriated."
Sec. 7.  This act becomes effective July 1, 1993.