A BILL TO BE ENTITLED
AN ACT to provide reduced tuition grants for children of public schoolteachers in certain circumstances.
The General Assembly of North Carolina enacts:
SECTION 1.  Part 5 of Article 1 of Chapter 116 of the General Statutes is amended by adding a new section to read:
"§ 116‑43.10.  Reduced tuition grants to aid children of public schoolteachers.
(a)	Definition. – For purposes of this section a qualified public schoolteacher means a person: (i) who is or was a certified full‑time teacher in the North Carolina public schools, and (ii) who has taught for at least 15 consecutive years in the State's public schools. 
(b)	Eligibility. – A student is eligible for a reduced tuition grant under this section if the student meets all of the following criteria:
(1)	Is the child of a qualified public schoolteacher.
(2)	Enrolls as a full‑time student in a constituent institution of The University of North Carolina.
(3)	Agrees in writing to pursue a degree in teacher education.
(4)	Agrees in writing to teach in the State public school system after graduation for a period of time as determined by the State Education Assistance Authority.
(c)	Limit on Number of Children Who Are Eligible for Reduced Tuition Grant. – Only one child of a qualified public schoolteacher is eligible for a reduced tuition grant under this section except as follows:
(1)	If a parent is a qualified public schoolteacher who has taught for at least 20 consecutive years, then two children of that parent are eligible for reduced tuition grants, provided the children also satisfy the criteria set out in subsection (b) of this section.
(2)	If both parents of a child are qualified public schoolteachers, then two of their children are eligible for reduced tuition grants, provided the children also satisfy the criteria set out in subsection (b) of this section.
(3)	If both parents are qualified public schoolteachers who have taught in the State's public schools for at least 20 years, then four of their children are eligible for reduced tuition grants, provided the children also satisfy the criteria set out in subsection (b) of this section.
(d)	Reduced Tuition Grant. – The reduced tuition grant provided by this section shall be for four consecutive academic years and shall cover half of the tuition cost and fees at the constituent institution at which the student is enrolled. If a student does not qualify as a resident for tuition purposes, then the student shall still receive an amount that would be equal to half of the in‑State tuition cost and fees at the constituent institution at which the student is enrolled; however, the student shall be liable for the difference in the out‑of‑State tuition rate and the remainder of the in‑State tuition rate. The reduced tuition grant shall be distributed to the student as provided by this section.
(e)	Administration of Tuition Grants. – The tuition grants provided for in this section shall be administered by the State Education Assistance Authority pursuant to rules adopted by the State Education Assistance Authority not inconsistent with this section. The State Education Assistance Authority shall not approve any grant until it receives proper certification from the appropriate constituent institution that the student applying for the grant is an eligible student. Upon receipt of the certification, the State Education Assistance Authority shall remit at the times it prescribes the grant to the constituent institution on behalf, and to the credit, of the student.
(f)	Tuition Grant Refunded if Student Fails to Carry a Minimum Academic Load. – In the event a student on whose behalf a grant has been paid is not enrolled and carrying a minimum academic load as of the tenth classroom day following the beginning of the school term for which the grant was paid, the institution shall refund the full amount of the grant to the State Education Assistance Authority.
(g)	Pro Rata Grants if Funds Are Insufficient. – In the event there are not sufficient funds to provide each eligible student with a reduced tuition grant of the appropriate amount:
(1)	The Board of Governors of The University of North Carolina, with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsections (a) and (b) of this section; and
(2)	Each eligible student shall receive a pro rata share of funds then available for the remainder of the academic year within the fiscal period covered by the current appropriation.
(h)	Reversions. – Any remaining funds shall revert to the General Fund.
(i)	Reduced Tuition Grants Decreased by Other Student Financial Assistance. – Notwithstanding any other provision of this section, no reduced tuition grant awarded to a student under this section shall exceed half of the cost of in‑State tuition and fees of the constituent institution at which the student is enrolled. If a student, who is eligible for a reduced tuition grant under this subsection, also receives a scholarship or other grant covering the cost of tuition at the constituent institution for which the reduced tuition grant is awarded, then the amount of the reduced tuition grant shall be reduced by an appropriate amount determined by the State Education Assistance Authority. The State Education Assistance Authority shall reduce the amount of the reduced tuition grant so that the sum of all grants and scholarship aid covering the cost of tuition received by the student, including the reduced tuition grant under this section, shall not exceed the cost of tuition for the constituent institution at which the student is enrolled.
(j)	Breach of Agreement to Teach. – If a student who receives a reduced tuition grant under this section does not teach in the State public school system as agreed to by the student under G.S. 116‑43.10(b)(4), then the student shall repay the amount of the reduced tuition grant received by the student with an appropriate rate of interest as determined by the State Education Assistance Authority."
SECTION 2.  This act is effective when it becomes law and applies to students in the 2005‑2006 academic year and each subsequent academic year.