GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 889

Short Title:  Finan. Aid/Registered Voter Only.	(Public)

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Sponsors: Representatives Davis; and Watson.

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Referred to:  State Government.

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April 12, 1995

A BILL TO BE ENTITLED
AN ACT TO PROVIDE THAT A RESIDENT OF NORTH CAROLINA MUST BE A REGISTERED VOTER TO RECEIVE STATE-SUPPORTED SCHOLARSHIPS OR OTHER STATE FINANCIAL ASSISTANCE FOR HIGHER EDUCATION, UNLESS THE RESIDENT HAS NO CITIZENSHIP RIGHTS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 116-209.19 reads as rewritten:
"§ 116-209.19.  Grants to students.
The Authority is authorized to make grants to eligible students enrolled or to be enrolled in eligible institutions in North Carolina out of such money as from time to time may be appropriated by the State or as may otherwise be available to the Authority for such grants. A student who is a resident of North Carolina and who is 18 years old or older is eligible for a grant only if the student is a registered voter.  A student who is a resident of North Carolina and who is less than 18 years old ceases to be eligible for a grant if the student fails to register to vote within 90 days of the student's eighteenth birthday.  A grant awarded under this section to a student who fails to register to vote as required by this section shall be revoked. The Authority, subject to the provisions of this Article and any applicable appropriation act, shall adopt rules, regulations and procedures for determining the needs of the respective students for grants and for the purpose of making such grants. The amount of any grant made by the Authority to any student, whether enrolled or to be enrolled in any private institution or any tax-supported public institution, shall be determined by the Authority upon the basis of substantially similar standards and guides that shall be set forth in the Authority's rules, regulations and procedures; provided, however, that grants made in any fiscal year to students enrolled or to be enrolled in private institutions may be increased to compensate, in whole or in part, for the average annual State appropriated tuition subsidy for such fiscal year, determined as provided herein. The average annual State appropriated subsidy for each fiscal year shall be determined by the Secretary of Administration, after consultation with the Board of Governors of the University of North Carolina and the Authority, for each of the two categories of tax-supported institutions, being (i)	institutions, presently 16, that provide education of the collegiate grade and grant baccalaureate degrees and (ii) institutions, such as community colleges and technical institutes created and existing under Chapter 115A of the General Statutes and community colleges created and existing under Chapter 115D of the General Statutes. The average annual State appropriated subsidy for each of such two categories of institutions shall mean the amount of the total appropriations of the State for the respective fiscal years under the current operations budgets, pursuant to the Executive Budget Act reasonably allocable to undergraduate students enrolled in such institutions exclusive of the Division of Health Affairs of the University of North Carolina and the North Carolina School of the Arts for all institutions in such category, all as shall be determined by the Secretary of Administration after consultation as above provided, divided by the budgeted number of North Carolina undergraduate students to be enrolled in such fiscal year.
The Authority, in determining the needs of students for grants, may among other factors, give consideration to the amount of other financial assistance that may be available to the students, such as nonrepayable awards under the Pell Grant Program, the Health Professions Education Assistance Act or other student assistance programs created by federal law.
Prior to taking any action under this subsection, the Secretary of  Administration may consult with the Advisory Budget Commission."
Sec. 2.  G.S. 116-209.24(c) reads as rewritten:
"(c)	Parental Assistance. – The Authority is authorized to develop and administer programs and perform all functions necessary or convenient to promote and facilitate the making and insuring of loans to parents of students in order to facilitate the vocational and college education of such students who are enrolled or to be enrolled in eligible institutions. The Authority is also authorized to provide such other services and loan assistance to parents of students as the Authority shall deem necessary or desirable for carrying out the purpose of this section and for qualifying for loans, grants, insurance, and other benefits and assistance under any program of the United States now or hereafter authorized fostering loans to eligible parents of students.
If a student is a resident of North Carolina and is 18 years old or older, the student must be registered to vote, unless the student has no citizenship rights, for the student's parent to be eligible for assistance under this section.  If a student is a resident of North Carolina, but is less than 18 years old, the student must register within 90 days of the student's birthday, unless the student has no citizenship rights, or the student's parent ceases to be eligible under this section and any assistance provided under this section shall be revoked."
Sec. 3.  G.S. 116-209.30(b) reads as rewritten:
"(b)	The Authority, in consultation with the Department of Human Resources, shall develop the following criteria to administer the Fund:
(1)	All students shall be enrolled in an institution of higher education in North Carolina in an accredited bachelors of social work or masters of social work program;
(2)	All students shall be residents of North Carolina. For purposes of this section, residency shall be determined by the same standard as residency for tuition purposes pursuant to G.S. 116-143.1;
(2a)	All students who are residents of North Carolina shall register to vote if they are 18 years old or older, unless they have no citizenship rights.   A student who is a resident of North Carolina but who is less than 18 years old at the time the student is awarded the scholarship loan shall register to vote within 90 days of the student's eighteenth birthday, unless the student has no citizenship rights.
(3)	All students shall enter into a legal agreement and promissory note with the Authority to accept employment in public child welfare in exchange for receiving any funds, which agreement shall include stipulation that the student agrees to accept employment in rural or other need-based counties; and
(4)	Any additional criteria that the Authority considers necessary to administer the program effectively, including:
a.	Consideration of the appropriate numbers of minority students and students from diverse socio-economic backgrounds to receive funds pursuant to this section;
b.	Consideration of what rural or other need-based areas of the State shall be considered appropriate for work after graduation pursuant to subdivision (3) of this subsection;
c.	Consideration of the academic qualifications of the individuals applying to receive funds; and
d.	Consideration of the commitment the individuals applying to receive funds demonstrate to the profession of social work.
Sec. 4.  G.S. 116-174.1 reads as rewritten:
"§ 116-174.1.  Minors authorized to borrow for higher education; interest; requirements of loans.
All minors in North Carolina of the age of 17 years and upwards shall have full power and authority to enter into written contracts of indebtedness, at a rate of interest not exceeding the contract rate authorized in Chapter 24 of the General Statutes, with persons and educational institutions or with firms and corporations licensed to do business in North Carolina and to execute notes evidencing such indebtedness. Such loans shall be:
(1)	Unsecured by the conveyance of any property as security, whether real, personal or mixed;
(2)	For the sole purpose of borrowing money to obtain post-secondary education at an accredited college, university, junior college, community college, business or trade school provided, however, that none of the proceeds of such loans shall be used to pay for any correspondence courses;
(3)	The proceeds of any loan shall be disbursed either directly to the educational institution for the benefit of the borrower or jointly to the borrower and the educational institution;
(4)	Made to a North Carolina resident who is 18 years old or older only if the resident is registered to vote, unless the resident has no citizenship rights.  If the borrower is a North Carolina resident who is less than 18 years old, the borrower shall register to vote within 90 days of the borrower's eighteenth birthday, unless the borrower has no citizenship rights."
Sec. 5.  G.S. 116-174.2 reads as rewritten:
"§ 116-174.2.  Grounds for revocation of scholarships.
	(a)	Any student regularly registered and enrolled as an undergraduate, graduate, or professional student in a state-supported college, university or community college who shall be convicted, enter a plea of guilty or nolo contendere upon an indictment or charge for engaging in a riot, inciting a riot, unlawful demonstration or assembly, seizing or occupying a building or facility, sitting down in buildings they have seized, or lying down in entrances to buildings or any facilities, or on the campus of any college, university, or community college, or any student, whether an undergraduate, graduate or professional student who shall forfeit an appearance bond on an indictment or charge of any of the above-named offenses, shall have revoked and withdrawn from his benefit all state-supported scholarships or any State funds granted to him for educational assistance. It shall be the duty of all persons or officials having charge of and authority over the granting of state-supported scholarships or any other form of financial assistance to immediately revoke and withdraw same in the event and upon the happening of any of the conditions or matters above enumerated; provided, however, that in subsequent academic terms any such student shall be eligible to be considered for and to be granted financial assistance from State funds.
(b)	Any student who:  (i) is a recipient of a State-supported scholarship or any State funds for educational assistance, (ii) is regularly registered and enrolled as an undergraduate, graduate, or professional student, (iii) is a resident of North Carolina and is 18 years old or older shall be registered to vote, unless the student has no citizenship rights.  Any student who:  (i) is a recipient of a State-supported scholarship or any State funds for educational assistance, (ii) is regularly registered and enrolled as an undergraduate, graduate, or professional student, (iii) is a resident of North Carolina, but who is less than 18 years old shall register to vote within 90 days of the student's eighteenth birthday, unless the student has no citizenship rights.
A student who fails to register to vote as required under this subsection shall have revoked and withdrawn from the student's benefit all State-supported scholarships or any State funds granted to the student for educational assistance. It shall be the duty of all persons or officials having charge of and authority over the granting of State-supported scholarships or any other form of financial assistance to immediately revoke and withdraw that financial assistance if the student fails to register to vote as required under this section.  However, in subsequent academic terms a student shall be eligible to be considered for and to be granted financial assistance from State funds if the student complies with the voter registration requirements under this section."
Sec. 6.  G.S. 90-171.65(a) reads as rewritten:
"(a)	There is created a need-based scholarship loan fund for nursing students.  Need-based scholarship loans shall be available for study in nursing programs offered by community colleges and The University of North Carolina, and by private colleges which offer licensed practical nursing or registered nursing programs.  Part-time students and nontraditional students who have post-secondary degrees, and registered nurses pursuing a baccalaureate degree in nursing, are eligible to receive need-based nursing scholarship loans.  A student who is a resident of North Carolina and who is 18 years old or older is eligible to receive a need-based nursing scholarship loan only if the student is a registered voter.  A student who is a resident of North Carolina but who is less than 18 years old is eligible for and may retain a need-based nursing scholarship loan only if the student registers to vote within 90 days of the student's eighteenth birthday.  A scholarship loan awarded under this section to a student who fails to register to vote as required by this section shall be revoked, unless the student is unable to register because the student has no citizenship rights."
Sec. 7. G.S. 115C-471 is amended by adding a new subdivision to read: 
"(1a)	Any resident of North Carolina who is 18 years old or older must be registered to vote to receive a scholarship loan under this section, unless the resident has no citizenship rights.  Any resident of North Carolina who is a recipient of a scholarship loan under this section and who is less than 18 years old must register to vote within 90 days of his or her eighteenth birthday to retain the scholarship loan, unless the resident has no citizenship rights."
Sec. 8.  G.S. 115D-40(a) reads as rewritten:
"(a)	A nonreverting Community College Scholarship Fund is created in the Department of Community Colleges to provide community college scholarships for needy residents of North Carolina.  A resident of North Carolina who is 18 years old or older is eligible for a scholarship only if the resident is a registered voter, unless the resident has no citizenship rights.  A resident of North Carolina who is less than 18 years old shall not retain a scholarship awarded under this section if the resident fails to register to vote within 90 days of the resident's eighteenth birthday, unless the resident has no citizenship rights.  A scholarship awarded under this section to a student who fails to register to vote as required by this section shall be revoked.
The State Board of Community Colleges shall adopt rules regarding administration of the Fund and eligibility for scholarships from it. The Department of Community Colleges shall administer the Fund. The Department of Community Colleges shall make an effort to assure that the scholarships are distributed on a geographically equitable basis throughout the State among the several institutions. The principal of  the Fund may not be used for any purpose; interest from the Fund may not be used for administering the Fund."
Sec. 9.  G.S. 165-21 is amended by adding a new subdivision to read:
"(5)	A student who is a resident of North Carolina and who is 18 years old or older is eligible for a scholarship only if the student is a registered voter.  A student who is a resident of North Carolina but who is less than 18 years old ceases to be eligible for a scholarship if the student fails to register to vote within 90 days of the student's eighteenth birthday.  A scholarship awarded under this section to a student who fails to register to vote as required by this section shall be revoked, unless the student fails to register because the student has no citizenship rights."
Sec. 10.  This act is effective upon ratification.