AN ACT authorizing community colleges to implement a tuition surcharge and to use endowed scholarship funds to offset the cost of a tuition surcharge.

The General Assembly of North Carolina enacts:

SECTION 1.  Chapter 115D of the General Statutes is amended by adding a new section to read:
"§ 115D‑39.1.  Tuition surcharge.
(a)	Notwithstanding the provisions of G.S. 115D‑39.1(a), a community college may, with the approval of the State Board of Community Colleges:
(1)	Implement a tuition surcharge of up to thirty-three and one-third percent (33 1/3%) of the statewide tuition rate to fund a new instructional program that is necessary to attract industry to the area, and
(2)	Use the proceeds of an endowed scholarship, consistent with the terms of the endowment, to offset the cost of the tuition charge.
(b)	All students enrolled in the new program, except for students for whom tuition and registration are waived by law or regulation, shall be charged the tuition surcharge. The funds collected from the endowment shall be deposited into an unrestricted institutional fund account at the community college.
(c)	This section applies only to an endowed scholarship in excess of five million dollars ($5,000,000).
(d)	The State Board shall adopt rules to implement this section."
SECTION 2.  This act becomes effective July 1, 2007.
In the General Assembly read three times and ratified this the 28th day of July, 2007.

	_____________________________________
		 Beverly E. Perdue
	 President of the Senate

	_____________________________________
		 Joe Hackney
	 Speaker of the House of Representatives

	_____________________________________
		 Michael F. Easley
	 Governor

Approved __________.m. this ______________ day of ___________________, 2007