AN ACT to revise eligibility requirements for need‑based scholarships for students attending private institutions of higher education and to make certain conforming changes.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  G.S. 116‑280 reads as rewritten:

§ 116‑280.  Definitions.

The following definitions apply to this Article:

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(3)        Eligible private postsecondary institution. – A school that is any of the following:

a.         A nonprofit postsecondary educational institution with a main permanent campus located in this State that is not owned or operated by the State of North Carolina or by an agency or political subdivision of the State or by any combination thereof that satisfies all of the following:

1.         Is either (i) accredited by a regional accrediting agency, as defined in G.S. 115D‑6.2 and G.S. 116‑11.4, or the Transnational Association of Christian Colleges and Schools or (ii) was accredited by SACSCOC on January 1, 2021, and, beginning January 1, 2021, was a member of the Transnational Association of Christian Colleges and Schools.

2.         Awards a postsecondary degree as defined in G.S. 116‑15.

a1.       A postsecondary educational institution with a permanent campus located in this State that is not owned or operated by the State of North Carolina or an agency or political subdivision of the State or by any combination thereof that satisfies all of the following:

1.         Is accredited by Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) and designated by SACSCOC as a level VI degree‑granting institution.

2.         Awards a postsecondary degree as defined in G.S. 116‑15.

b.         A postsecondary institution owned or operated by a hospital authority as defined in G.S. 131E‑16(14) or school of nursing affiliated with a nonprofit postsecondary educational institution as defined in sub‑subdivision a. of this subsection.

(4)        Main permanent campus. – A campus owned by the eligible private postsecondary institution that provides permanent on‑premises housing, food services, and classrooms with full‑time faculty members and administration that engages in postsecondary degree activity as defined in G.S. 116‑15.

(4a)      Permanent campus. – A campus owned by an eligible private postsecondary institution that provides permanent classrooms with full‑time faculty members and administration that engages in postsecondary degree activity as defined in G.S. 116‑15.

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SECTION 1.(b)  G.S. 116‑209.100(1)c. reads as rewritten:

c.        A nonprofitAn eligible private postsecondary institution as defined in G.S. 116‑280(3).

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