John Rollins Scholarship Protection Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1216

Short Title: John Rollins Scholarship Protection Act. (Public)
Sponsors: Representative Ager.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
May 5, 2026
*H1216-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROTECT PR IVATE SCHOLARSHIPS B Y PROHIBITING SCHOLA RSHIP 2
DISPLACEMENT IN PUBLIC INSTITUTIONS OF HIGHER EDUCATION. 3
Whereas, the cost of higher education often requires students to seek financial 4
assistance from a variety of sources; and 5
Whereas, colleges and universities often engage in the practice known as scholarship 6
displacement or scholarship award displacement, whereby institutional or government 7
scholarships awarded to a student are reduced by the amount of a private scholarship awarded to 8
the student; and 9
Whereas, many private donors are reluctant to provide scholarship support when they 10
become aware that their intentions to increase financial support to students are being frustrated 11
by scholarship displacement; and 12
Whereas, the Hendersonville High School Alumni Association of Hendersonville, 13
North Carolina, is embarking on an ambitious campaign to increase its scholarship endowment 14
fund to one million dollars; and 15
Whereas, John Rollins, a graduate of the Hendersonville High School Class of 1955 16
and long-time and generous supporter of the Association, has brought to the attention of the 17
Association the phenomenon of scholarship displacement and indicated his concerns about his 18
future gifts to the Association having his desired impact on the student's college attendance; and 19
Whereas, John Rollins received financial assistance as a high school student which 20
made it possible for him to attend college and go on to a rewarding and successful career as an 21
accountant; and 22
Whereas, John Rollins desires that students receive a real, net benefit from 23
scholarship support, as he did; and 24
Whereas, the Hendersonville High School Alumni Association and other nonprofit 25
organizations and foundations across North Carolina that award scholar ships to high school 26
students who are pursuing higher education are hindered in their mission because of the use of 27
scholarship displacement by institutions of higher education; and 28
Whereas, elimination of scholarship displacement at public institutions of higher 29
education will allow students to realize the full, intended benefit of their private scholarship 30
awards; Now, therefore, 31
The General Assembly of North Carolina enacts: 32
SECTION 1.(a) Chapter 116 of the General Statutes is amended by adding a new 33
Article to read: 34
"Article 34A. 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1216-First Edition
"John Rollins Scholarship Protection Act. 1
"§ 116-284. Title of Article. 2
This Article shall be known and may be cited as the "John Rollins Scholarship Protectio n 3
Act." 4
"§ 116-285. Definitions. 5
The following definitions shall apply in this Article: 6
(1) Institutional financial aid. – All grants, scholarships, tuition waivers, and other 7
forms of financial assistance provided to a student based on need or merit by 8
a public institution of higher education . Institutional financial aid does not 9
include loans or funds related to work-study programs. 10
(2) Private scholarship. – A scholarship awarded by a private, nongovernmental 11
entity, including a business, a private foundation, a nonprofit organization, or 12
a service group, from funds that are not State funds or federal funds to a 13
student to enroll at a public institution of higher education. A private 14
scholarship does not include any of the following: 15
a. An award of State funds administered by a private organization , 16
including funds awarded pursuant to the North Carolina Patriot Star 17
Family Scholarship Program. 18
b. An award of non -State funds by a private organization , including an 19
alumni association or foundation, that (i) i s affiliated with a public 20
institution of higher education and (ii) requests the assistance of the 21
public institution of higher education in selecting the recipient of the 22
award. 23
(3) Public institution of higher education. – A community college located in this 24
State or a postsecondary constituent institution of The University of North 25
Carolina. 26
(4) Student. – A person enrolled at a public institution of higher education. 27
"§ 116-286. No reduction of institutional financial aid. 28
(a) Notwithstanding any other provision of law to the contrary, a public institution of 29
higher education shall not reduce the institutional financial aid of a student due to that student 's 30
receipt of a private scholarship. 31
(b) The Board of Governors of The University of North Carolina and the State Board of 32
Community Colleges shall each adopt a policy to enforce the requirements of subsection (a) of 33
this section at public institutions of higher education. At a minimum, the policy shall require each 34
public institution of higher education to report to the relevant governing board on the following 35
information for each academic year: 36
(1) The cost of attendance for the public institution of higher education. 37
(2) The average institutional financial ai d given to students with private 38
scholarships compared to those without private scholarships. 39
(c) No later than March 15 of each year, the Board of Governors shall report the 40
information provided pursuant to subsection (b) of this section to the Joint Legislative Education 41
Oversight Committee." 42
SECTION 1.(b) Part 2 of Article 3 of Chapter 115D of the General Statutes is 43
amended by adding the following new section to read: 44
"§ 115D-40.4. No reduction of institutional financial aid. 45
The State Board of Community Colleges and each community college shall comply with the 46
provisions of G.S. 116-286 to ensure that the institutional financial aid provided to a student is 47
not reduced due to the student's receipt of a private scholarship." 48
SECTION 2.(a) There is appropriated from the General Fund to the Board of 49
Governors of The University of North Carolina the sum of one hundred sixty thousand dollars 50
($160,000) in recurring funds beginning in the 2026 -2027 fiscal year to be allocated to 51
General Assembly Of North Carolina Session 2025
House Bill 1216-First Edition Page 3
constituent institutions of The University of North Carolina based on enrollment to increase funds 1
available for financial aid to students. 2
SECTION 2.(b) There is appropriated from the General Fund to the Community 3
Colleges System Office the sum of five hundred eighty thousand dollars ($580,000) in recurring 4
funds beginning in the 2026 -2027 fiscal year to be allocated to community colleges based on 5
enrollment to increase funds available for financial aid to students. 6
SECTION 2.(c) This section becomes effective July 1, 2026. 7
SECTION 3. Except as otherwise provided, this act is effective when it becomes law 8
and applies beginning with scholarships awarded in the 2027-2028 academic year. 9