Introduction SECTION NO. 1

Effective Date: September, 1985

INTRODUCTION

The public institutions of higher education were established and are maintained by the State of North Carolina primarily for the benefit of qualified residents of North Carolina. The consequent substantial commitment of public resources to higher education is predicated on the proposition that the State does benefit significantly from the existence of large numbers of citizens whose capacity for effective discharge of civic, professional and social responsibilities has been enhanced by the opportunity for advanced educational experiences. Accordingly, as a matter of State policy, the benefits of higher education are provided so far as practicable at minimal cost to students whose quality and duration of residence in North Carolina render them people of the State. [see North Carolina Constitution, Article IX, Section 9.]

While the practice of permitting a limited number of non residents to enroll in the North Carolina public institutions of higher education is educationally sound, considerations of equity dictate that such students pay the approximate actual cost of their education, already provided by the citizen taxpayers of North Carolina in anticipation of present and future benefit to the State. Accordingly, it is the long standing practice of the State to require students who are not residents of the State to pay a higher rate of tuition than that charged to students whose legal residence in the State reasonably assures that they have already contributed, and will continue to contribute, substantially to the State in their capacity as resident citizens. [see General Statutes 116-11(7) and 116-144.]

HISTORICAL CONTEXT

Until May of 1973, determination of a student's residence status for tuition purposes rested upon the easily administered statutory requirement that a legal resident must have maintained his domicile in North Carolina for at least the twelve months next preceding the date of enrollment or re-enrollment in an institution of higher education in this State with the express proviso that student status in an institution of higher learning in this State shall not constitute eligibility for residence to qualify said student for in-state tuition. [G.S. 116-143.1, 1971; emphasis added]. The administrative consequences of this law was to make necessary, in most cases, only one inquiry concerning residence status for each student, at the outset of the higher education experience, since time spent enrolled as a student could not be counted in satisfaction of the twelve-month eligibility requirement.

The 1971 Session of the General Assembly amended the applicable law, with the consequence that a person who might already be enrolled was no longer necessarily precluded from demonstrating during the period of his or her enrollment that he or she had become a legal resident of North Carolina and been so for such a duration as to be entitled to the in-state tuition rate. The administrative consequences of this modification of the law were substantial. Two inquiries were now mandated by the statute.

First, had the applicant for classification as a resident for tuition purposes become a legal resident of North Carolina? Second, had the applicant maintained that legal residence in North Carolina for at least twelve months immediately prior to the term for which in-state status was sought? Thus, a carefully detailed inquiry was not to be made in each such case concerning the residential status of the applicant, as measured by established legal principles controlling the disposition of questions about one's place of legal residence.

In 1974, the General Assembly further amended the statute: (1) to grant a statutory grace period to certain persons who, following classification as residents for tuition purposes and during enrollment, lost North Carolina legal residence, with the effect that such persons should continue to enjoy the in-state tuition rate for a specified period of time and (2) to permit a shortening of the prescribed twelve-month qualifying period of residence for a resident whose spouse had continuously maintained residence in-state from a point in time more remote than that of the applicant.

In 1975, the General Assembly again amended G.S. 116-143.1, this time in both formalistic and substantive ways. Formally, many of the provisions of the 1973 law were retained but textually organized so as to make more obvious the elements of the statute; to this structure were added certain definitions of terms, whose meaning was already dictated or implied by the prior law. Substantively, the previously existing prima facie evidence rules, which made evidentially important the domicile of one's parents, were modified by an exception that made inconsequential or at least less significant, the non residence of parents whose applicant child had lived in this State the five years preceding the subject enrollment or re-registration.

Most important, subsection (f) of the 1975 law established in the tuition status context, that the fact of marriage alone was to essentially neither favor nor disadvantage a married person of either sex. This, in effect, rendered inoperative in the present context the common law principle that a wife's domicile is presumed to be that of her husband.

In 1977, the General Assembly, responding to the desperate migration of Indochina refugees to this country, enacted a new section to G.S. Chapter 116 (G.S. 116-143.2) to confer in-state tuition status on refugees and orphans from the Republic of Vietnam, Laos and Cambodia, who, as refugees or orphans, entered the United States after March 31, 1975, lived (abided) in this State for twelve months, and continued so situated into and through academic admission and enrollment at an institution of higher education.

Anticipating that the hostile international circumstances prompting this legislation would ameliorate, the General Assembly conditioned the act to expire on July 1, 1982. In 1979, the General Assembly amended G.S. 116-143.1 to confer legal residence on a minor whose domicile under general law might be derivatively that a parent not domiciled in North Carolina but whose financial support came from a North Carolina parent claiming the child as a dependent for income tax purposes in this State [G.S. 116-143.1(j)].

A further amendment to this subsection was enacted in 1981 to preserve the legal residence thus conferred upon the minor if the person involved (1) upon becoming an adult, acts, to the extend that the person's degree of actual emancipation permits, in a manner consistent with bona fide legal residence in North Carolina and (2) begins enrollment at an institution of higher education not later than the fall academic term next following completion of education prerequisite to admission to such institution.

The 1979 Legislature also amended the statute to permit minors living with North Carolina relatives other than parents but who were functioning as guardians, to receive resident tuition status if the de facto guardian relationship had existed for five or more years immediately preceding the term for which the in-state status were sought [Section 116-143.1(k)]

The 1981 General Assembly, in addition to amending subsection (j) as indicated, enacted a new subsection (l) to facilitate the reacquisition of resident tuition status by persons who had ceased enrollment or graduated while enjoying in-state status, had then abandoned North Carolina domicile, but within twelve months of abandonment had reacquired domicile into re-enrollment at an institution of higher education. Subsection (l) provides that such persons need not meet the twelve- month durational requirement to reacquire in-state tuition status for the re-enrolled term or any subsequent term while the reacquired domicile is continuously maintained. The benefit of this subsection, however, is available for use only once by any one person.

The 1984 General Assembly enacted a new section, G.S. 116-143.3 to make eligible for the in-state tuition rate any member of the armed services while abiding (living) in this State incident to active military duty. The privilege was made available also to any dependent relative of a member of the armed services upon the condition that the dependent relative share in North Carolina the abode of the service person and that the service person qualify for the benefit. In 1985, the General Assembly revised the tuition benefit for the service member so that the tuition actually charged would be the out-of-state tuition amount reduced to the extend that the out-of-state tuition exceeds an amount derived by a statutory formula that factors in any payments to the enrolling institution by the service member's employer by reason of the enrollment.

Also in 1985 the General Assembly added the requirement that to enjoy the in-state tuition benefit, a dependent relative must meet any applicable requirements of the Selective Service System. Continuing from the 1984 act are these conditions: (1) that neither the service person nor a dependent relative is relieved of meeting pertinent admissions requirements of the enrolling institution; (2) that the benefit of the law is limited to potentially receiving a tuition rate lower than the out-of-state rate and that a person receiving the reduced tuition benefit solely because of G.S. 116-143.3 shall not qualify for of be the basis for conferring the benefits of G.S. 116-143.1 (g), (h), (I), (j), (k), or (l); and (3) that if the service person who supports a dependent relative receiving the benefit of G.S. 116.143.3 leaves his or her North Carolina abode during the academic year, the dependent relative may complete that academic year at the in-state tuition rate.

MILITARY PERSONNEL AND THEIR MILITARY DEPENDENTS

Eligibility to be charged less than the out-of-state tuition rate under G.S. 116-143.3 is dependent on the "maximum available tuition assistance" available to the service member through his service component.

1. To calculate the fee and tuition charge, take the "maximum" military tuition assistance rate (now set at $250 per credit hour), then subtract the Education and Technology fee (calculated on a per student credit hour basis). The amount left is the tuition to be charged.

One who does not qualify under this Manual as a resident for tuition purposes may be eligible to be charged tuition at the in-state rate plus mandatory fees if the service person does not receive tuition assistance from his service.

If a military member does not receive tuition assistance from his service employer, he or she would pay the in-state rate plus all applicable mandatory fees.

The full texts of G.S. 116-143.1 and 116-143.3 are set for in Appendix A.

PURPOSE OF THE MANUAL

The purpose of this manual is to articulate rules and regulations and set forth collateral law essential to the effective implementation of G.S. 116-143.1 and 116-143.3 and to provide guidance to each institution and its students in meeting their respective responsibilities under the law as to classification of persons by residence for tuition purposes.

G.S. 116-143.1 and G.S. 116-143.3, in their successive revisions, necessitated the development and revisions of this manual to insure faithful and effective implementation of the statutes. The public higher education community, in discharging its responsibilities under G.S. 116-143.1, understands that the precepts of due process and equal protection of the laws dictate that a rigorous classification inquiry be undertaken to insure as fully as possible that persons who are not legal residents for tuition purposes of North Carolina will be charged the legally prescribed higher tuition rate and persons who are in fact legal residents of North Carolina for tuition purposes will be afforded the legally prescribed lower tuition rate.