A BILL TO BE ENTITLED
AN ACT to provide community college scholarships for veterans and needy students.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  Of the funds appropriated from the Education Lottery Fund to the State Educational Assistance Authority fund for college and university scholarships, the sum of four hundred fifty thousand four hundred thirty‑two dollars ($450,432) for the 2013‑2014 fiscal year and the sum of nine hundred one thousand eight hundred sixty‑four dollars ($901,864) for the 2014‑2015 fiscal year shall be used to provide 200 community college scholarships. Each community college shall select one veteran and one needy student from each county in its service area to receive the scholarships each year. Of these funds, the State Educational Assistance Authority may use up to two percent (2%) to administer the scholarships; the remainder shall be used for scholarships.
SECTION 1.(b)  In order to be eligible to receive a scholarship under this act, a student seeking a degree, diploma, or certificate at a community college must meet all of the following requirements:
(1)	Only needy North Carolina students are eligible to receive scholarships. For determining eligibility for a scholarship as a veteran, "needy North Carolina students" are those eligible students (i) who are honorably discharged or discharged under honorable conditions and (ii) whose expected family contribution under the federal methodology does not exceed five thousand dollars ($5,000). For determining eligibility for a scholarship as a needy student, "needy North Carolina students" are those eligible students for whom there is no expected family contribution under the federal methodology.
(2)	The student must meet all other eligibility requirements for the federal Pell Grant, with the exception of the expected family contribution.
(3)	The student must qualify as a legal resident of North Carolina and as a resident for tuition purposes in accordance with definitions of residency that may from time to time be adopted by the Board of Governors and published in the residency manual of the Board of Governors.
(4)	The student must meet enrollment standards by being admitted, enrolled, and classified as an undergraduate student in a matriculated status at a community college.
(5)	In order to continue to be eligible for a scholarship for the student's second academic year, the student must meet achievement standards by maintaining satisfactory academic progress in a course of study in accordance with the standards and practices used for federal Title IV programs by the community college in which the student is enrolled.
(6)	A student may not receive a scholarship under this act for more than two full academic years.
SECTION 2.  This act becomes effective July 1, 2013.