GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	2 

HOUSE BILL 42
Committee Substitute Favorable 4/13/95

Short Title:  Education Improvement Act.	(Public)

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Sponsors:

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Referred to:  

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January 30, 1995

A BILL TO BE ENTITLED
AN ACT TO IMPROVE EDUCATIONAL OPPORTUNITIES FOR NORTH CAROLINIANS.
Whereas, the North Carolina Constitution mandates that the benefits of The University of North Carolina, as well as other public institutions of higher education, be extended to the people of the State free of expense, as far as practicable; and
Whereas, many students who are residents of North Carolina and who can prove their ability to benefit from higher education by meeting high academic standards are unable to attend a public institution of higher education because of a lack of economic resources; and
Whereas, attendance at our public institutions of higher education should be based on the ability to learn, not the ability to pay; and
Whereas, it is the policy of this State to promote academic achievement and provide incentives to parents and students that encourage students to exceed minimum educational standards while preparing themselves to succeed in higher education; and
Whereas, State action that guarantees that North Carolina students with proven ability to learn can attend an institution of higher education will result in far greater long-range savings to the State than it would cost in terms of these students' increased earning capacity and the increased contributions that these students would be able to make to their society; Now, therefore,
The General Assembly of North Carolina enacts:
Section 1.  This act shall be known and cited as "The Education Improvement Act of 1995".
Sec.  2.  Chapter 116 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 18B.
"Education Improvement Act of 1995.
"§ 116-174.3.  Program name; purpose.
The purpose of this Article is to provide eligible people with a grant of money for tuition and fees to enable those people to attend an institution of higher education.  Awards of money made pursuant to this Article shall be known as North Carolina Education Improvement Grants.
"§ 116-174.4.  Definitions.
As used in this Article:
(1)	'Authority' means the State Education Assistance Authority as set forth in Article 23 of Chapter 116 of the General Statutes.
(2)	'Commission' means the Education Improvement Commission as established under G.S. 116-174.8.
(3)	'Grant' means a North Carolina Education Improvement Grant as established by this Article.
(4)	'Institution of higher education' means one of the 16 public senior institutions of The University of North Carolina as set forth in G.S. 116-2, a community college as set forth in G.S. 115D-2, or a private junior or senior college as set forth in G.S. 116-22.
"§ 116-174.5.  Eligibility.
(a)	A grant for tuition and fees at an institution of higher education shall be paid by the State on behalf of any eligible student who enrolls in such an institution to pursue an associate or baccalaureate degree.  To be eligible for a grant, a person shall meet all of the following qualifications:
(1)	Be a resident for tuition purposes pursuant to G.S. 116-143.1;
(2)	Be a graduate of an accredited high school or hold a recognized equivalent diploma or certificate and have achieved a minimum cumulative grade point average of 2.0 calculated on a 4.0 scale while in high school;
(3)	Have not been convicted of a Class A through E felony or a felony under G.S. 90-95 or under Article 3 of Chapter 18B of the General Statutes or adjudicated delinquent for acts that would constitute a violation of those offenses if committed by an adult, if the offense occurred before the person reached the age of 16; and
(4)	Be found to be in financial need.
(b)	To continue to receive State payment of tuition and fees once enrolled in an institution of higher education, a student shall meet all of the following requirements:
(1)	Make steady academic progress toward a degree, earning not less than the minimum number of hours of credit required for full-time standing in each academic period requiring this enrollment;
(2)	Maintain full-time enrollment standing for not less than two semesters or three quarters in each successive academic year, unless granted an exception for cause by the Commission;
(3)	Have no record of criminal activity since first receiving a North Carolina Education Improvement Grant; and
(4)	Be found to be in financial need.
"§ 116-174.6.  Financial need.
All applicants must apply for Federal Title IV student financial assistance.  If the applicant is eligible for a Pell Grant of an amount less than the total of tuition and fees, the amount of a State grant shall be equal to the difference between the amount of tuition and fees and the Pell Grant amount.
An applicant who is found to be ineligible for a Pell Grant shall be found to be in financial need for purposes of a North Carolina Education Improvement Grant if:
(1)	The applicant's custodial parent or guardian has one dependent child under the age of 21 and the adjusted gross income of the family for the tax year immediately preceding the determination of financial need is less than thirty thousand dollars ($30,000);
(2)	The applicant's custodial parent or guardian has two dependent children under the age of 21 and the annual adjusted gross income of the family for the tax year immediately preceding the determination of financial need is less than thirty-five thousand dollars ($35,000); or
(3)	The applicant's custodial parent or guardian has three or more dependent children under the age of 21 and the annual adjusted gross income of the family for the tax year immediately preceding the determination of financial need is less than forty thousand dollars ($40,000).
The annual adjusted gross income of the family for the tax year immediately preceding the determination of financial need shall be verified by that year's Internal Revenue Service tax returns.
"§ 116-174.7.  Program administration.
The Commission shall make determinations of eligibility to receive grants under this Article.  Notwithstanding G.S. 116-174.5(a)(3), the Commission may determine that an applicant is eligible to receive a grant if the Commission deems the applicant has demonstrated full remediation and is otherwise eligible.  Administration of the funding for these grants shall be vested in the Authority.  The Commission shall communicate to appropriate kindergarten through secondary school staff and parent organizations the existence of the grants and the minimum eligibility requirements.
"§ 116-174.8.  Education Improvement Commission.
(a)	There is created the Education Improvement Commission.  The Commission shall be responsible for determining eligibility to receive grants under this Article. The Commission shall be located administratively under the Board of Governors of The University of North Carolina but shall exercise all its prescribed statutory powers independently of the Board of Governors.
(b)	The Commission shall consist of 13 members as follows:  three members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance with G.S. 120-121, one of whom shall be recommended by the President Pro Tempore of the Senate to serve as cochair; three members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives in accordance with G.S. 120-121, one of whom shall be recommended by the Speaker of the House of Representatives to serve as cochair; three members to be appointed by the Governor; and four members serving ex officio; the Chairman of the Board of Governors of The University of North Carolina; the Chairman of the State Board of Community Colleges; the Chairman of the North Carolina Association of Independent Colleges and Universities; and the Chairman of the State Board of Education.  Members serving ex officio may designate others to represent them on the Commission.
(c)	One of the members recommended by the President Pro Tempore of the Senate, one of the members recommended by the Speaker of the House of Representatives, and two of the members appointed by the Governor shall serve an initial term of two years, to expire on July 1, 1997.  The remainder of the appointive members shall serve an initial term of four years, to expire on July 1, 1999. Their successors shall serve for four-year terms.  Vacancies shall be filled by the office making the initial appointment and for the remainder of the unexpired term only.  The initial meeting of the Commission shall be called jointly by the cochairs, and the Commission shall meet at least once each quarter at the call of the cochairs.
(d)	Members of the Commission who are not State officers or employees shall receive per diem and necessary travel and subsistence expenses in accordance with G.S. 138-5.  Members who are State officers or employees shall be reimbursed for travel and subsistence in accordance with G.S. 138-6.
(e)	The Board of Governors shall provide requested professional and clerical staff to the Commission.  The Commission may also employ professional and clerical staff and may hire outside consultants to assist it in its work.
(f)	The Commission, in consultation with the Authority, shall develop and adopt rules pursuant to Chapter 150B of the General Statutes to govern eligibility determinations.  These rules shall include:
(1)	A mechanism for informing all students of the availability of the assistance provided pursuant to this section early enough in their schooling that a salutary motivational effect is possible;
(2)	Applications, forms, financial audit procedures, eligibility, and other program audit procedures, and other matters related to efficient operation; and
(3)	Provision for appeals of eligibility determinations.  All appeals shall be heard pursuant to Article 3 of Chapter 150B of the General Statutes.
(g)	The Commission is an authorized agency pursuant to G.S. 7A-675 to have access to juvenile records.  When any person who has not reached the eighteenth birthday is convicted of a Class A through E felony or any felony under G.S. 90-95 or Article 3 of Chapter 18B of the General Statutes or is adjudicated delinquent for acts that would constitute one or more of these specified offenses if committed by an adult, the court shall report the conviction or adjudication of delinquency to the Commission within 30 days.
"§ 116-174.9.  Amount of grants/payment.
(a)	Eligible students shall receive a grant to cover the costs of tuition and fees at the institution of higher education in which the student enrolls, as follows:
(1)	If the student attends a senior constituent institution of The University of North Carolina or a community college, full tuition and fees; or
(2)	If the student attends a private junior or senior college, the average of the amount of tuition and fees charged by the senior constituent institutions of The University of North Carolina, which designation excludes the North Carolina School of the Arts.
(b)	Payments of tuition and fees shall be made by the Authority directly to the institution to which the tuition is due after notice from the Commission to the institution that the State shall pay the tuition of a student and after notice from the institution to the Authority that the student has actually enrolled.
(c)	No student shall receive a grant pursuant to this Article in an amount greater than the tuition and fees charged by the institution.  The student shall apply for a federal grant prior to receiving State aid pursuant to this Article."
Sec. 3.  Article 23 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116-209.25.  North Carolina Education Improvement Grants.
In addition to all other powers and duties vested or imposed under this Article, the Authority shall administer the funding for the North Carolina Education Improvement Grants awarded by the Education Improvement Commission pursuant to Article 18B of this Chapter.  In order to accomplish the purposes of this section, the Authority may:
(1)	In consultation with the Education Improvement Commission, adopt rules to implement the funding of the North Carolina Education Improvement Grants;
(2)	Receive from the General Fund or other sources those funds the General Assembly may authorize to cover, in addition to any other available funds, the costs of tuition and fees required to be paid to eligible students under Article 18B of this Chapter, both initial and continuing, for the coming academic year; and
(3)	Seek, accept, and expend funds from any source, including private business, industry, foundations, and other groups as well as any federal or other governmental funding available for this purpose."
Sec. 4.  There is appropriated from the General Fund to the Board of Governors of The University of North Carolina the sum of ten million dollars ($10,000,000) for the 1995-96 fiscal year and the sum of twenty million dollars ($20,000,000) for the 1996-97 fiscal year to implement this act.  Funds appropriated for the 1995-96 fiscal year shall be available only to applicants who are enrolling as freshmen.  The Board of Governors shall allocate funds to the Education Improvement Commission established by this act and to the Education Assistance Authority according to a schedule of allocation it establishes.
Sec. 5.  This act becomes effective July 1, 1995, and applies to payments made for academic years beginning with the 1995-96 academic year.