AN ACT to permit constituent institutions of the university of north carolina to provide discounted tuition to persons receiving military tuition assistance or persons enrolled in an employer‑sponsored financial support program.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 116‑143 reads as rewritten:

§ 116‑143.  State‑supported institutions of higher education required to charge tuition and fees.

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(c)        Inasmuch as the giving of tuition and fee waivers, or especially reduced rates, represent in effect a variety of scholarship awards, the said practice is hereby prohibited except when expressly authorized by statute.

(d)       Notwithstanding the above provision relating to the abolition of free tuition, the Board of Governors of The University of North Carolina may, in its discretion, provide regulations under which personnel may during the period of normal employment enroll in The University of North Carolina free of charge for tuition and fees, provided such enrollment does not interfere with normal employment obligations and further provided that such enrollments are not counted for the purpose of receiving General Fund appropriations as follows:

(1)        Except as provided in subdivision (2) of this subsection, a full‑time faculty member of the rank of full‑time instructor or above and any full‑time staff member of The University of North Carolina may enroll in not more than three courses per year.

(2)        A full‑time or part‑time campus law enforcement officer may enroll in the number of courses per year determined by regulation.

(d1)     Notwithstanding subsection (c) of this section, the Board of Governors of The University of North Carolina may do any of the following:

(1)        Personnel. – Provide regulations under which personnel may enroll in The University of North Carolina free of charge for tuition and fees during the period of normal employment if the (i) enrollment does not interfere with normal employment obligations and (ii) enrollments are not counted for the purpose of receiving General Fund appropriations. Personnel may enroll free of charge for tuition and fees as follows:

a.         A full‑time faculty member of the rank of full‑time instructor or above of The University of North Carolina may enroll in not more than three courses per year.

b.         A full‑time staff member of The University of North Carolina may enroll in more than three courses per year.

c.         A full‑time or part‑time campus law enforcement officer may enroll in the number of courses per year determined by regulation.

(2)        Military students. – Allow constituent institutions, in their discretion, to discount tuition to qualifying military students by an amount of up to the difference in the maximum amount of military tuition assistance funds the student receives and the applicable tuition. For purposes of this subdivision, a qualifying military student is a student who meets the following criteria:

a.         Is a resident for tuition purposes under G.S. 116‑143.1.

b.         Receives either (i) federal military tuition assistance funds or (ii) military tuition assistance funds for members of the North Carolina National Guard under Article 15 of Chapter 127A of the General Statutes.

(3)        Employer sponsorships. – Allow constituent institutions, in their discretion, to discount tuition to students who are enrolled in an employer‑sponsored financial support program which has been approved by the Board of Governors of The University of North Carolina. The discount may be up to the difference in the maximum amount provided by the employer and the applicable tuition. For purposes of this subdivision, an employer‑sponsored financial support program is a program in which the employer of a student has committed to provide financial support to the student to offset the costs of tuition or fees in the student's degree or credential program.

(d2)     No later than February 15 of each year, the Board of Governors of The University of North Carolina shall report to the Joint Legislative Education Oversight Committee and the Fiscal Research Division on the discounted tuition provided in the previous academic year pursuant to subdivisions (2) and (3) of subsection (d1) of this section, including at least the following information:

(1)        The number of students that receive a discount under subdivisions (2) and (3) of subsection (d1) of this section.

(2)        The annual financial impact on each constituent institution resulting from the discounted tuition provided.

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SECTION 2.  This act is effective when it becomes law and applies beginning with the 2025‑2026 academic year.