GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	1
HOUSE BILL 1412
     

 
Short Title:	Aid to Private Colleges/Upper Income Students.	()	
Sponsors:	Representatives Luebke; and Insko.	
Referred to:	Appropriations.	
April 26, 2001

A BILL TO BE ENTITLED
AN ACT TO DECREASE THE AID TO PRIVATE INSTITUTIONS FOR a STUDENT WHO is, or can be claimed as a dependent by, an UPPER TAX BRACKET taxpayer.

The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 116‑209.19 reads as rewritten:
"§ 116‑209.19.  Grants to students.
(a)	The Authority is authorized to make grants to eligible students enrolled or to be enrolled in eligible institutions in North Carolina out of such money as from time to time may be appropriated by the State or as may otherwise be available to the Authority for such grants. The Authority, subject to the provisions of this Article and any applicable appropriation act, shall adopt rules, regulations and procedures for determining the needs of the respective students for grants and for the purpose of making such grants.
(b)	The amount of any grant made by the Authority to any student, whether enrolled or to be enrolled in any private institution or any tax‑supported public institution, shall be determined by the Authority upon the basis of substantially similar standards and guides that shall be set forth in the Authority's rules, regulations and procedures; provided, however, that grants made in any fiscal year to students enrolled or to be enrolled in private institutions may be increased to compensate, in whole or in part, for the average annual State appropriated tuition subsidy for such fiscal year, determined as provided herein.
(c)	The average annual State appropriated subsidy for each fiscal year shall be determined by the Secretary of Administration, after consultation with the Board of Governors of the University of North Carolina and the Authority, for each of the two categories of tax‑supported institutions, being (i) institutions, presently 16, that provide education of the collegiate grade and grant baccalaureate degrees and (ii) institutions, such as community colleges and technical institutes created and existing under Chapter 115A of the General Statutes and community colleges created and existing under Chapter 115D of the General Statutes. The average annual State appropriated subsidy for each of such two categories of institutions shall mean the amount of the total appropriations of the State for the respective fiscal years under the current operations budgets, pursuant to the Executive Budget Act reasonably allocable to undergraduate students enrolled in such institutions exclusive of the Division of Health Affairs of the University of North Carolina and the North Carolina School of the Arts for all institutions in such category, all as shall be determined by the Secretary of Administration after consultation as above provided, divided by the budgeted number of North Carolina undergraduate students to be enrolled in such fiscal year.
(d)	The Authority, in determining the needs of students for grants, may among other factors, give consideration to the amount of other financial assistance that may be available to the students, such as nonrepayable awards under the Pell Grant Program, the Health Professions Education Assistance Act or other student assistance programs created by federal law.
(e)	Prior to taking any action under this subsection, the Secretary of Administration may consult with the Advisory Budget Commission.
(f)	Notwithstanding any other provision of this section, the tuition subsidy authorized by subsection (b) of this section for a student enrolled or to be enrolled at a private institution is limited as provided by this subsection. If a student is, or can be claimed as a dependent by, an upper tax bracket taxpayer, then the amount provided for that student as a tuition subsidy under subsection (b) of this section for a student who is enrolled or to be enrolled at a private institution is reduced by three percent (3%) of the excess of the taxpayer's adjusted gross income over the applicable amount provided in section 68 of the Code.
(g)	The following definitions apply in this section:
(1)	Code. – Defined in G.S. 105-228.90.
(2)	Dependent. – A person for whom the taxpayer is allowed to deduct a personal exemption under section 151(c) of the Code.
(3)	Upper tax bracket taxpayer. – A taxpayer whose adjusted gross income under the Code exceeds the applicable amount provided in section 68 of the Code."
SECTION 2.  This act becomes effective July 1, 2001.