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  • Summary date: Apr 26 2019 - View Summary

    Adds new Part 5, University of North Carolina Tuition Scholarships for Top-Performing Students, in Article 23 of GS Chapter 116, providing as follows. Requires the State Education Assistance Authority (Authority) to annually award scholarships to eligible students to attend a UNC constituent institution in an amount not to exceed the cost of tuition per fall or spring academic semester for a maximum of eight academic semesters. Requires awarding scholarships in the order in which they are received. Sets out the following eligibilty requirements: (1) in the school semester prior to enrolling in a constituent institution, the student graduates from a public high school located in this state in the top 10% of the student's graduating class; (2) qualifies as a resident of this State for tuition purposes; (3) gains admission as a student in a constituent institution in a curriculum program; and (4) the student signs a letter of intent that the student will remain a resident of North Carolina for at least four years following graduation from the constituent institution for which the student received the scholarship. Requires the constituent institution to refund the tuition grant to the Authority if a scholarship recipient is not enrolled and carrying a minimum academic load as of the tenth classroom day following the beginning of the school term for which the tuition is granted. Renews a scholarship annually if the student has a cumulative 3.0 grade point average and completes a minimum of 30 semester credit hours by the end of the academic year.

    Establishes the North Carolina UNC Tuition Scholarship Fund Reserve (Fund Reserve) consisting of funds received by the Authority to provide tuition scholarships under this Part, returned scholarship money, and earned interest. Requires the Fund to be used for (1) tuition scholarships for the academic year that begins in the fiscal year following the fiscal year  in which the appropriation is made to the Reserve and (2) the administrative costs of the Authority, provided that no more than 5% of the funds appropriated each fiscal year for tuition scholarships is expended for administrative purposes.

    Appropriates $174,817,800 in recurring funds for 2019-20 from the General Fund to the Fund Reserve for awarding scholarships.

    The above provisions are effective July 1, 2019, and apply beginning with the award of tuition scholarships for the 2020-21 academic year. 

    Amends GS 105-130.3 by increasing the rate of the state income tax on C Corporations from 2.5% to 3.15%. Effective for taxable years beginning on or after January 1, 2019.