A BILL TO BE ENTITLED
AN ACT to amend the allocation of funds and CONTRIBUTION commitments for the distinguished professor endowment trust fund and the sum required to establish an endowed chair.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 116‑41.15 reads as rewritten:
"§ 116‑41.15.  Distinguished Professors Endowment Trust Fund; allocation; administration.
(a)	For constituent institutions other than focused growth institutions and special needs institutions, the amount appropriated to the trust shall be allocated by the Board as follows:
(1)	On the basis of one three hundred thirty‑four thousand dollar ($334,000) challenge grant for each six hundred sixty‑six thousand dollars ($666,000) raised from private sources; or
(2)	On the basis of one hundred sixty‑seven thousand dollar ($167,000) challenge grant for each three hundred thirty‑three thousand dollars ($333,000) raised from private sources; or
(3)	On the basis of one challenge grant of up to one million dollars ($1,000,000) for funds raised from private sources in twice the amount of the challenge grant.
If an institution chooses to pursue the use of the allocated challenge grant funds described in either subdivision (1),  subdivision (2), or subdivision (3) of this subsection, the challenge grant funds shall be matched by funds from private sources on the basis of two dollars ($2.00) of private funds for every one dollar ($1.00) of State funds.
(b)	For focused growth institutions and special needs institutions, the amount appropriated to the trust shall be allocated by the Board as follows:
(1)	On the basis of one five hundred thousand dollar ($500,000) challenge grant for each five hundred thousand dollars ($500,000) raised from private sources; or
(2)	On the basis of one two hundred fifty thousand dollar ($250,000) challenge grant for each two hundred fifty thousand dollars ($250,000) raised from private sources; or 
(3)	On the basis of one challenge grant of up to one million five hundred thousand dollars ($1,500,000) for funds raised from private sources in the same amount as the challenge grant.
If an institution chooses to pursue the use of the allocated challenge grant funds described in either subdivision (1), subdivision (2), or subdivision (3) of this subsection, the challenge grant funds shall be matched by funds from private sources on the basis of one dollar ($1.00) of private funds for every one dollar ($1.00) of State funds.
(c)	Matching funds shall come from contributions made after July 1, 1985, and pledged for the purposes specified by G.S. 116‑41.14. Each participating constituent institution's board of trustees shall establish its own Distinguished Professors Endowment Trust Fund, and shall maintain it pursuant to the provision of G.S. 116‑36 to function as a depository for private contributions and for the State matching funds for the challenge grants. The State matching funds shall be transferred to the constituent institution's Endowment Fund upon notification that the institution has received and deposited the appropriate amount required by this section in its own Distinguished Professors Endowment Trust Fund. Only the net income from that account shall be expended in support of the distinguished professorship thereby created."
SECTION 2.  G.S. 116‑41.16 reads as rewritten:
"§ 116‑41.16.  Distinguished Professors Endowment Trust Fund; contribution commitments.
(a)	For constituent institutions other than focused growth institutions and special needs institutions, contributions may also be eligible for matching if there is:
(1)	A commitment to make a donation of at least six hundred sixty‑six thousand dollars ($666,000), as prescribed by G.S. 143‑31.4, and an initial payment of one hundred eleven thousand dollars ($111,000) to receive a grant described in G.S. 116‑41.15(a)(1); or
(2)	A commitment to make a donation of at least three hundred thirty‑three thousand dollars ($333,000), as prescribed by G.S. 143‑31.4, and an initial payment of fifty‑five thousand five hundred dollars ($55,500) to receive a grant described in G.S. 116‑41.15(a)(2); or 
(3)	A commitment to make a donation in excess of six hundred sixty‑six thousand dollars ($666,000), as prescribed by G.S. 143‑31.4, and an initial payment of one‑sixth of the committed amount to receive a grant described in G.S. 116‑41.15(a)(3);
and if the initial payment is accompanied by a written pledge to provide the balance within five years after the date of the initial payment. Each payment on the balance shall be no less than the amount of the initial payment and shall be made on or before the anniversary date of the initial payment. Pledged contributions may not be matched prior to the actual collection of the total funds. Once the income from the institution's Distinguished Professors Endowment Trust Fund can be effectively used pursuant to G.S. 116‑41.17, the institution shall proceed to implement plans for establishing an endowed chair.
(b)	For focused growth institutions and special needs institutions, contributions may also be eligible for matching if there is:
(1)	A commitment to make a donation of at least five hundred thousand dollars ($500,000), as prescribed by G.S. 143‑31.4, and an initial payment of eighty‑three thousand three hundred dollars ($83,300) to receive a grant described in G.S. 116‑41.5(b)(1); or
(2)	A commitment to make a donation of at least two hundred fifty thousand dollars ($250,000), as prescribed by G.S. 143‑31.4, and an initial payment of forty‑one thousand six hundred dollars ($41,600) to receive a grant described in G.S. 116‑41.15(b)(2); or
(3)	A commitment to make a donation in excess of five hundred thousand dollars ($500,000), as prescribed by G.S. 143‑31.4, and an initial payment of one‑sixth of the committed amount to receive a grant described in G.S. 116‑41.15(b)(3);
and if the initial payment is accompanied by a written pledge to provide the balance within five years after the date of the initial payment. Each payment on the balance shall be no less than the amount of the initial payment. Pledged contributions may not be matched prior to the actual collection of the total funds. Once the income from the institution's Distinguished Professors Endowment Trust Fund can be effectively used pursuant to G.S. 116‑41.17, the institution shall proceed to implement plans for establishing an endowed chair."
SECTION 3.  G.S. 116‑41.17 reads as rewritten:
"§ 116‑41.17.  Distinguished Professors Endowment Trust Fund; establishment of chairs.
When the sum of the challenge grant and matching funds in the Distinguished Professors Endowment Trust Fund reaches:
(1)	One million dollars ($1,000,000), if the sum of funds described in G.S. 116‑41.15(a)(1) or G.S. 116‑41.15(b)(1); or
(2)	Five hundred thousand dollars ($500,000), if the sum of funds described in G.S. 116‑41.15(a)(2) or G.S. 116‑41.15(b)(2); or
(3)	An amount up to three million dollars ($3,000,000), if the sum of funds described in G.S. 116‑41.15(a)(3) or G.S. 116‑41.15(b)(3);
the board of trustees may recommend to the Board, for its approval, the establishment of an endowed chair or chairs. The Board, in considering whether to approve the recommendation, shall include in its consideration the programs already existing in The University of North Carolina. If the Board approves the recommendation, the chair or chairs shall be established. The chair or chairs, the property of the constituent institution, may be named in honor of a donor, benefactor, or honoree of the institution, at the option of the board of trustees."
SECTION 4.  This act is effective when it becomes law.