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House | June 14, 2016 | Chamber | House Education

Full MP3 Audio File

Go ahead and call the meeting to order please. [BLANK_AUDIO] I'd like to introduce the pages if you please stand, Jacob Abel for Carberraus county represented by Representative Bradford, Destiny Davis, Wake County Representative Gill, Tyler Homes Mecklenburg County, Representative Bishop, Haley Hutchinson Durham County, Representative Luebke and Sophie Meglio Areo/g County, with me. Thank you very much. Also our Sergeant at Arms today if you'd please raise your hand. Lauren Hawkins, Doug Harris, Malachi Coleman Junior and Barry Moore. [BLANK_AUDIO] We have a PCS before us for senate bill 536 without objection the committee will proceed with the PCS. Hearing no objection the meeting plan is to have a senator Barefoot present the students know before you go part of the PCS, and for staff to review the central residency section. Senator Barefoot. >> Thank you Mr. Chairman and thank you committee members. The bill before you has two parts. One is a it's called students know before you go, it directs a state education assistance authority to provide information on its website annually regarding career options and major options for students Students who are attending our university system some of the information that it will contain, are things like completion rates within the expected number of semesters for a degree that is solved/g. Transfer rates of students to other institutions, percentage of students receiving financial aid and what type. The amount of loan debt upon graduation by major, and the average median in salary by major, things like that, it's spelled out pretty specifically in the Bill. I think you all know this, that next to buying a house, a persons college education probably the second most expensive thing that they will purchase. And we have really great institutions, both public and private in North Carolina and we just wanna make sure that our students and their parents when they're applying for their financial aid have good information on the degree programs, that they are seeking from those institutions. The second part of the Bill sets up the process by which residency is going to be determined and administered throughout the state for in-state tuition. And I'm gonna ask Drapti/g if she will walk you through the particulars of the part of the Bill. [BLANK_AUDIO] >> Are you ready for me to go through them? [BLANK_AUDIO] Section two of the Bill as Senator Barefoot explained talks about determination for in-state tuition based on residency, and I think it would be a little bit helpful if I sort of step back to last year when the General Assembly in the 2015 Appropriations Act, directed the State Education Assistance Authority to perform the functions necessary to establish, and implement a coordinated, centralized process for residency determination for tuition purposes. For student who are admitted to the constituent institutions of the University of North Carolina, community colleges or students who apply for state funded financial aid to attend eligible private universities in the state. And directed this process to be completed by December 31, 2016. And so what this bill does is, basically comes back and effectuates that by putting in the statutes that this is to happen. So, section two goes through various different statutes and makes the changes needed including in Section 2c, specifically providing that the Education Assistance Authority is to administer this coordinated, and centralized process for determining residency for tuition and state funded financial aid purposes. And then The rest of the sections are to make those conforming changes.

And just a couple of other things to point out, the State Board of Community Colleges would be directed to adopt a policy that conforms with this. And the Education assistant's authority would establish a council with Representatives from the various entities to guide, and assist them in developing and implementing any policies that would need to administer this properly. [BLANK_AUDIO] >> Thank you. Any question? Representative Elmore. >> >> This may be a question for staff. Is there a statutory definition of residency? [BLANK_AUDIO] >> If you look on section 2A , there's the entire statute that goes through various provisions for defining residency 116-143.1 talks about legal residence, residence for tuition purposes etc. The entire statute is not in there because there are a number of provisions within it that statute as the primary statute for the determination. >> Follow up. >> Okay. >> Can you give me some highlights of what that statute has for the definition. [BLANK_AUDIO] [BLANK_AUDIO] So the statute in sub section B I'll read it to you. It says, to qualify as a resident for tuition purposes a person must have established legal residence [UNKNOWN] and friends in North Carolina, and maintained that legal residence for at least 12 months immediately prior to his or her classification as a resident for tuition purposes. And then every applicant admission has to be required to make a statement as to the length of residence in the state. And then there are other provision, but you know talk about some exceptions and caveats and further information that would have to be provided in certain instances, and that type of thing. >> Follow up question? >> Okay. >> I know there's been some concerns in this chamber dealing with the role of folks receiving scholarships based on their outer state, that they received scholarships based on instate rates. And also there's been been discussion about the residential cap att some of the universities of 18%. With this authority have the ability to change the residency policy via policy or do they have to work in the statutory requirements and that current policy of the board of governors? [BLANK_AUDIO] >> Director can build off my answer if she'd like but they have to work within the statutory authority that we've given them. [BLANK_AUDIO] >> That is correct. This bill does not make any changes to the issues representative Elmore that you are discussing about whether or not a person who receives a full scholarship such as the Morehead or parks/g and how they are classified but handled under a different statute. >> Representative Insko >> Thank you Mr chairman I wanna follow up on some of the questions that have been asked already. So on page three section two sub section F it is, excuse me section 2E number three. The board of governors evidently has published a list of criteria that would it be acceptable do you know whether that's the case or not. >> [INAUDIBLE] if you'd like to follow up on that please. >> I'm sorry which section are you referring to [INAUDIBLE] >> On page three section 2E3 the student must qualify as a legal resident and then it says In accordance with definitions of residency that may from time to time be adopted by the board governors.

On line 34 and 35. >> Right, that's a conforming change it's my understanding in the entities involved can speak to at further if needed, but right now actually going back to the 70's or 80's the board of governor published those residency manuals. Because all of the determination for residency were done at the campus level. So [INAUDIBLE] would make its own determination for somebody who applied there and then East Carolina the person applied to East Carolina would make their own independent determination. So this residency manual has been published for a long time that sort of a guide book, hand book for all the campuses, and so now that they are going to this centralized process where a determination is made for an individual. So it applies regardless of whether you applied or East Carolina, or Pembroke it's minor change that this residency manual will not be needed in the way that it has been used in the past. But I will defer to like I said the entities that are working on this, that was incorrect or incomplete. >> Representative Insko, we have a representative of the UNC system, Mr Drew Marrets/g here. Perhaps he'd like to comment on that further. >> Thank you very much. Elizabeth [INAUDIBLE] executive director of the state education assistance authority. The board of governors has helped set policy in the past as demonstrated through the manual. They continue to have some oversight within as we move forward. But the policies mostly now will be driven through the IDS we do not anticipate I mean we are not anticipating setting broad policy here. We'll be carrying out what changes you put in place through the residency determination service that's how it's implemented. And should there be additional policy coming from the board of governors then this advisory committee that's helping the ORDS system. We'll also listen to that to see if there's anything in there that we need to consider and put into ORDS. ORDS would also incorporate into it should the courts come back with any decision that we need to take into account. Those are typically things that have gone through the residency manual in the past. >> Representative Insko. >> Follow up if I may. I think I'm primarily concerned about the new section on tax information. So will everybody be required to submit tax? Information automatically is part if their application. I guess I'm curious about the applications. I assume that all the applications for all the institutions have a section where a student has to indicate that they're a resident or not, and provide the information. So they're not caught unawares of this requirement? But I'm especially interested in the tax information. How that would be transmitted to the agency. >> Miss McDuffy/g. >> When a student goes through the residency determination service, we will then confirm the information they provide to us such as a drivers license number, then we will confirm with DMV that this student does indeed have this drivers license. When they tell us they filed North Carolina taxes, this statute will provide an ability for us to ping DOR and ask, one did this student indeed file taxes? Taxes and did they file as a resident or a non-resident and that's all we would ask. There's no income or tax information being exchanged. [BLANK_AUDIO] So just one more follow up. >> So as I understand, the lack of tax Filing wouldn't automatically qualify them, if they] would be one thing that would be available to qualify them. >> Ms. McDuffy. >> Correct. >> Representative Brody. >> [BALNK_AUDIO] Thank you mr. chairman, senator. I just have a question about the Practical application of this maybe as a parent or an actual student. You go through it, student or parent might wanna apply and go through this the first time and they may have x amount of um residency tax All that but of course through the year or years it may all change and it may change that eligibility.

How often would the person applying have to go back again and reaffirm their Residency or does that provide anything for that. So you go the next semester or you skip a semester and then come back and you happen to be filing out of state tax returns or something like that. Would you have to then go back and reaffirm that on a regular basis? Staff can you help me with that answer [SOUND] >> I think this is accurate but I will certainly un defer it to the folks in the audience who um know this very well. I think once you are enrolled and you've received instate tuition you've been classified it is instate tuition I think as long as you stay continuously enrolled that does Not go away, um I don't know that they ask for additional documentation um repeatedly once you've been given that status. If you've not been classified as instate you can ask to have your information be reviewed again. So if your circumstances have changed Or if there is an appeals process so, that is my understanding that if you didn't get it that first semester, you could make an application to get it again. But I will defer to the folks from the authority and the community colleges and universities. >> Miss Mcdurfee anything to add? Pretty much save it for the definition for continuously unrolled is no break of two semesters or more. So if you sit out one semester you do not have to come back through the audio system. Two semesters the we'd want to reaffirm that the student and the stone are not in collaboration. >> Representative Senator Murphy. >> Thank you Mr Chairman this is probably for senator Barefoot, just a question as to the source for the seven dash points that just did the request for the website. Were this recommended from somewhere, where did this come from? Well, part of them came from me. These were the things that we thought would be important for a parent to consider. Also I'm trying to think back to when this bill originally passed the senate, about a year ago. I'm having to go back to my mind to that and some of them were negotiated. There was more extensive wizz till we worked with our hired ed partners to kinda come up with where we were at and where that information would be available but as it moved to the center process this was the recommendations that we sent to you on the information that should be available One of the things we did was we looked at what current information was about [UNKNOWN] just didn't seem, [UNKNOWN] burst enough to be informative and say we this is what we decided to add. >> Okay. Follow up. >> Okay. I just say thats because I think this is all together, a lot of thing to do that we give our students information. I just wondered about especially the last two if you look at I'm on a board of a college here in our state and we are trying to do the similar kind of thing, you look at the application and what's happening in today there's so many students are putting off things they are not going to graduate school immediately etc how one attainable is This information to how helpful it is to six months that was my main question cuz a lot of graduate students now are putting it all for two years three years and certainly giving us a false low result of what's really happening. So two points on that, one the kind of language in those last two bullet points That's what we kind of negotiated with our higher ed partners. The second piece is, we are not limiting the information that they can add to this. We are just saying we would like for you to get a picture of this. So if you have an institution that has a major where not many of their graduates are employed within six months of graduation because a very large number of them enroll in graduate schools, there is nothing in this bill that prohibits them from submitting that information. We just felt like this was kind of the baseline data that people needed to understand. So if you see that within a particular degree people are not employed within six months, you probably need to ask the question why? And my hope is, as the institutions develop the information that they're gonna give to the The SEAA, that they will take that into consideration. [BLANK_AUDIO]

>> Any further questions? If not, do I have a motion favorable to the PCS unfavorable to the original? So moved. All All in favor say aye. >> Aye. >> All opposed? Thank you. The meeting has adjourned. [BLANK_AUDIO]