CHAPTER 1060 AN ACT TO AMEND PORTIONS OF CHAPTER 165 RELATING TO VETERANS, AND TO REWRITE AND RECODIFY INTO CHAPTER 165 THE PRESENT ARTICLE 15 OF CHAPTER 116 RELATING TO SCHOLARSHIPS FOR VETERANS CHILDREN. The General Assembly of North Carolina do enact:
Section 8. Article 4 of Chapter 165 of the General Statutes, as the same appears in 1964 Replacement Volume 3D, is hereby rewritten to read as follows: Article 4 Scholarships for Children of War Veterans $ 165-19. Purpose. In appreciation for the service and sacrifices of North Carolinas war veterans and as evidence of this States concern for their children, there is hereby continued a revised program of scholarships for said children as set forth in this Article.  165-20. Definitions. As used in this Article the terms defined in this Section shall have the following meaning: (a) Veteran means a person who served as a member of the Armed Forces of the United States in active Federal service during a period of war and who was separated from the Armed Forces under conditions other than dishonorable. A person who was separated from the Armed Forces under conditions other than dishonorable and whose death or disability was incurred -1 as a direct result of armed conflict or -2 while engaged in extra-hazardous service, including such service under conditions simulating war, shall also be deemed a veteran and such death or disability shall be considered wartime service-connected. (b) Armed Forces means the Army, Navy, Marine Corps, Air Force and Coast Guard, including their reserve components. (c) Active Federal Service means full-time duty in the Armed Forces other than active duty for training; however, if disability or death occurs while on active duty for training -1 as a direct result of armed conflict or -2 while engaged in extra-hazardous service, including such service under conditions simulating war, such active duty for training shall be considered as active Federal service. (d) Period of war and wartime shall mean any of the periods or circumstances as defined below: -1 World War I, meaning (a) the period beginning on April 6, 1917 and ending on November 11, 1918, and (b) in the case of a veteran who 1562 served with the United States Armed Forces in Russia, the period beginning on April 6, 1917 and ending on April 1, 1920 -2 World War II, meaning the period beginning on December 7, 1941 and ending on December 31, 1946 -3 Korean Conflict, meaning the period beginning on June 27, 1950 and ending on January 31, 1955 -4 Any period of service in the Armed Forces during which the veteran parent of an applicant for a scholarship under this Article suffered death or disability (a) as a direct result of armed conflict or (b) while engaged in extra-hazardous service, including such service under conditions simulating war. (e) Child? means a person who has completed high school or its equivalent prior to receipt of a scholarship as may be awarded under this Article and who further meets one of the following requirements: -1 A person whose veteran parent was a legal resident of North Carolina at the time of said veterans entrance into the Armed Forces. -2 A veterans child who was born in North Carolina and has lived in North Carolina continuously since birth. Provided, that the requirement in the preceding sentence as to birth in North Carolina may be waived by the North Carolina Department of Veterans Affairs if it is shown to the satisfaction of the Department that the childs mother was a native-born resident of North Carolina and was such resident at the time of her marriage to the veteran and was outside the State temporarily at the time of the childs birth, following which the child was returned to North Carolina within a reasonable period of time where said child has since lived continuously. -3 A person meeting either of the requirements set forth in subsections -1 or -2 above, and who was legally adopted by the veteran prior to said persons reaching the age of six years and within 10 years of the veterans entry on active duty for the period of war under which said persons entitlement to a scholarship is being considered. (f) State Educational Institution means any educational institution of higher learning which is owned and operated by the State of North Carolina, or any community college operated under the provisions of Article 3 of Chapter 116 of the General Statutes of North Carolina, or the North Carolina School of the Arts.  165-21. Scholarship. (a) Unless expressly limited elsewhere in this Article, a scholarship granted pursuant to this Article shall consist of the following benefits in any State supported institution of higher education, including the Community Colleges and the college program of the North Carolina School of the Arts: -1 Tuition. -2 A reasonable board allowance. -3 A reasonable room allowance. -4 Such other items and institutional services as are embraced within the so called institutional matriculation fees and other special fees and charges required to be paid as a condition to remaining in said institution and pursuing the course of study selected. 1563 (b) Only one scholarship may be granted pursuant to this Article with respect to each child and it shall not extend for a longer period than four academic years, which years, however, need not be consecutive. $ 165-22. Classes or Categories of Eligibility Under Which Scholarships May be Awarded. (a) A child, as defined in this Article, who falls within the provisions of any eligibility class described below shall, upon proper application be considered for a scholarship, subject to the provisions and limitations set forth for the class under which he is considered: -1 Class I-A: Under this class a scholarship shall be awarded to any child whose veteran parent a. Was killed in action or died from wounds or other causes not due to his own wilful misconduct while a member of the Armed Forces during a period of war, or b. Has died of service-connected injuries, wounds, illness or other causes incurred or aggravated during wartime service in the Armed Forces, as rated by the United States Veterans Administration. -2 Class I-B. Under this class a limited scholarship providing only those benefits set forth in Section 165-21 (a) -1 and (4), and Section 165-21 (b) of this Article, shall be awarded to any child whose veteran parent, at the time the benefits pursuant to this Article are sought to be availed of, is or was at the time of his death receiving compensation for a wartime service-connected disability of one hundred per cent -100% as rated by the United States Veterans Administration. Provided, that if the veteran parent of a recipient under this class should die of his wartime service-connected condition before the recipient shall have utilized all of his scholarship eligibility time, then the North Carolina Department of Veterans Affairs shall amend the recipients award from Class 1-B to Class 1-A for the remainder of the recipients eligibility time. The effective date of such an amended award shall be determined by the North Carolina Department of Veterans Affairs, but, in no event, shall it predate the date of the veteran parents death. -3 Class II: Under this class a scholarship may be awarded to not more than one hundred children yearly, each of whose veteran parent, at the time the benefits pursuant to this Article are sought to be availed of, a. Is or was at the time of his death receiving compensation for a wartime service-connected disability of thirty per cent -30% or more, but less than one hundred per cent (100%), as rated by the United States Veterans Administration, or b. Is or was at the time of his death receiving wartime compensation for a statutory award for arrested pulmonary tuberculosis, as rated by the United States Veterans-Administration, or ec. Was a prisoner of war for a period of at least six months and who was wounded in combat against an enemy of the United States of America during the time of war and is or was at the time of his death receiving compensation for a wartime service-connected disability of twenty per cent -20% or more, as rated by the United States Veterans Administration. -4 Class III: Under this class a scholarship may be awarded to not more than one hundred children yearly, each of whose veteran parent, at 1564 the time the benefits pursuant to this Article are sought to be availed of, is or was at the time of his death drawing pension for permanent and total disability, nonservice-connected, as rated by the United States Veterans Administration.  165-22.1. Administration and Funding. The administration of the scholarship program shall be vested in the North Carolina Department of Veterans Affairs, and the disbursing and accounting activities required shall be a responsibility of the Department of Administration. The Department of Veterans Affairs shall determine the eligibility of applicants, select the scholarship recipients, establish the effective dates of scholarships, maintain necessary records, and promulgate such rules and regulations not inconsistent with the other provisions of this Article as it deems necessary for the orderly administration of the program. It may require of State educational institutions, as defined in this Article, such reports and other information as it may need to carry out the provisions of this Article. The Department of Administration shall disburse scholarship payments for recipients certified eligible by the Department of Veterans Affairs upon certification of enrollment by the enrolling institution. Funds for the support of this program shall be appropriated to the Department of Administration as a reserve for payment of the allocable costs for room, board, tuition, and other charges, and shall be placed in a separate budget code from which disbursements shall be made. In the event the said appropriation for any year is insufficient to pay the full amounts allocable under the provisions of this Article, such supplemental sums aS may be necessary shall be allocated from the Contingency and Emergency Fund. The method of disbursing and accounting for funds allocated for payments under the provisions of this Act shall be in accordance with those standards and procedures prescribed by the Director of the Budget, pursuant to the Executive Budget Act. Allowances for room and board shall be at such rate as the Director of the Budget may determine to be reasonable.