A BILL TO BE ENTITLED
AN ACT to provide full tuition for students that are children of public school teachers and who enroll at a constituent institution or a community college and to provide a partial tuition grant for students that are children of public school teachers and who enroll in a private institution of higher education in this state.
The General Assembly of North Carolina enacts:
SECTION 1.  Article 1 of Chapter 116 of the General Statutes is amended by adding the following new sections to read:
"§ 116‑43.10.  Full tuition grants for children of public school teachers.
(a)	Definition. – For purposes of this section, the term "qualified teacher" means a person who is a public schoolteacher in North Carolina who has taught at least 15 years in the State public school system, or who is a retired public schoolteacher who had taught at least 15 years in the State public school system.
(b)	Tuition Grant for Full‑Time Student Enrolled in Constituent Institution. – There is granted to each State resident who is the child of a qualified teacher, who enrolls as a full‑time student in a constituent institution of The University of North Carolina, and who is 26 years of age or younger, a sum to be determined by the General Assembly as a tuition grant. The tuition grant shall be for four consecutive academic years and shall cover the tuition cost at the constituent institution in which the student is enrolled. The tuition grant shall be distributed as provided by this section.
(c)	Tuition Grant for Full‑Time Student Enrolled in Community College. – There is granted to each State resident who is the child of a qualified teacher, who enrolls as a full‑time student in a community college in North Carolina, and who is 26 years of age or younger, a sum to be determined by the General Assembly as a tuition grant. The tuition grant shall be for two consecutive academic years and shall cover the tuition cost at the community college in which the student is enrolled. The tuition grant shall be distributed as provided by this section.
(d)	Tuition Grants Administered by State Education Assistance Authority. – 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 or community college 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 or community college on behalf, and to the credit, of the student.
(e)	Refund Grant if Student Does Not Carry Full 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 or community college shall refund the full amount of the grant to the State Education Assistance Authority.
(f)	Pro Rata Grants if Funds Are Insufficient for Full Grants. – In the event there are not sufficient funds to provide each eligible student with a full grant:
(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 subsection (b) of this section, and the State Board of Community Colleges; with the approval of the Office of State Budget and Management, may transfer available funds to meet the needs of the programs provided by subsection (c) 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.
(g)	Funds Revert to General Fund. – Any remaining funds shall revert to the General Fund.
(h)	Tuition Grant Shall Not Exceed Cost of Tuition. – Notwithstanding any other provision of this section, no tuition grant awarded to a student under this section shall exceed the cost of tuition of the constituent institution or the community college at which the student is enrolled. If a student, who is eligible for a tuition grant under this subsection, also receives a scholarship or other grant covering the cost of tuition at the constituent institution or community college for which the tuition grant is awarded, then the amount of the 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 tuition grant so that the sum of all grants and scholarship aid covering the cost of tuition received by the student, including the tuition grant under this section, shall not exceed the cost of tuition for the constituent institution or the community college at which the student is enrolled.
(i)	Tuition Grant is Not Transferable. – A tuition grant awarded under this section is not transferable.
"§ 116‑43.11.  Legislative tuition grants to aid eligible students who are children of public school teachers and who are attending private institutions of higher education.
(a)	Definition. – For purposes of this section, the term "qualified teacher" means a person who is a public schoolteacher in North Carolina who has taught at least 15 years in the State public school system, or who is a retired public schoolteacher who had taught at least 15 years in the State public school system.
(b)	Students Attending Most Private Institutions. – In addition to any funds appropriated pursuant to G.S. 116‑19 and in addition to all other financial assistance made available to institutions, or to students attending these institutions, there is granted to each full‑time North Carolina undergraduate student who is the child of a qualified teacher, who is attending an approved institution as defined in G.S. 116‑22, and who is 26 years of age or younger, a sum for each academic year, to be determined as follows:  the sum shall equal the average of the tuition for all of the constituent institutions in The University of North Carolina for that academic year. The legislative tuition grant shall be distributed to the student in the same manner and method and subject to the same provisions, qualifications, and limitations as the tuition grants provided by G.S. 116‑21.2.
(c)	Students Attending Certain Other Private Institutions. – A student who is the child of a qualified teacher, who is eligible for a grant under G.S. 116‑43.5, and who is 26 years of age or younger, shall also receive an additional grant for each academic year in an amount to be determined as follows:  the sum shall equal the average of the tuition for all of the constituent institutions in The University of North Carolina for that academic year. The grant provided under this subsection shall be distributed to the student in the same manner and method and subject to the same provisions, qualifications, and limitations as the grants provided by G.S. 116‑43.5.
(d)	Tuition Grant or Other Grant Not Transferable. – A tuition grant or other grant awarded under this section is not transferable."SECTION 2.  G.S. 116‑21.4 reads as rewritten:
"§ 116‑21.4.  Limitations on expenditures.
(a)	Expenditures made pursuant to G.S. 116‑19, 116‑20, 116‑21.1, 116‑21.2, or 116‑43.11(b) may be used only for secular educational purposes at nonprofit institutions of higher learning that meet the qualifications set out in G.S. 116‑22.
(b)	Expenditures made pursuant to G.S. 116‑19, 116‑20, 116‑21.1, 116‑21.2, or 116‑43.11 shall not be used for any student who:
(1)	Is incarcerated in a State or federal correctional facility for committing a Class A, B, B1, or B2 felony; or
(2)	Is incarcerated in a State or federal correctional facility for committing a Class C through I felony and is not eligible for parole or release within 10 years."
SECTION 3.  This act becomes effective July 1, 2007, and applies to the 2007‑2008 academic year and each subsequent academic year.