A BILL TO BE ENTITLED
AN ACT to prohibit a CONSTITUENT institution from hosting a confucius institute, to prohibit a private institution of higher education that hosts a CONFUCIUS institute from RECEIVING or benefiting from state funds, and to appropriate funds to constituent institutions to transition curriculum.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 116‑11 is amended by adding a new subdivision to read:
"(4d)	The Board of Governors shall adopt a policy prohibiting any constituent institution from hosting a Confucius Institute, as defined in the John S. McCain National Defense Authorization Act for Fiscal Year 2019, P.L. 115‑232, at the constituent institution as part of its course of study, cultural programming, or community outreach activities."
SECTION 2.  G.S. 116‑283 reads as rewritten:
"§ 116‑283.  Administration; loss of eligibility for use of scholarships at an institution; unexpended scholarship funds do not revert.
(a)	The scholarships provided for in this Article shall be administered by the Authority under rules adopted by the Authority in accordance with the provisions of this Article.
(a1)	The Authority shall adopt a rule that an otherwise eligible private postsecondary institution shall lose eligibility for students to use a scholarship awarded pursuant to this Article at the institution if the institution hosts a Confucius Institute, as defined in the John S. McCain National Defense Authorization Act for Fiscal Year 2019, P.L. 115‑232, at the institution as part of its course of study, cultural programming, or community outreach activities. The Authority shall require that all eligible private postsecondary institutions report to the Authority on whether the institutions host a Confucius Institute prior to disbursing scholarship funds to the institutions on behalf of students receiving scholarships under this Article.
(b)	The Authority may use up to one and one‑half percent (1.5%) of the funds appropriated for scholarships under this Article for administrative purposes.
(c)	Scholarship funds unexpended shall remain available for future scholarships to be awarded under this Article."
SECTION 3.  Notwithstanding any provision of law, beginning with the 2020‑2021 fiscal year and subsequent fiscal years thereafter, no State agency responsible for the allocation of State funds to a private college or university shall allocate those State funds to a private college or university that hosts a Confucius Institute, as defined in the John S. McCain National Defense Authorization Act for Fiscal Year 2019, P.L. 115‑232, at the college or university as part of its course of study, cultural programming, or community outreach activities.
SECTION 4.  There is appropriated from the General Fund to the Board of Governors of The University of North Carolina the sum of one hundred fifty thousand dollars ($150,000) in nonrecurring funds for the 2020‑2021 fiscal year to be allocated to any constituent institution that is transitioning from hosting a Confucius Institute to developing an alternative curriculum program for Chinese language instruction in compliance with this act.
SECTION 5.  This act becomes effective July 1, 2020, and applies beginning with the 2020‑2021 academic year.