N.J. Stat. tit. 18A, ch. 72B

in effect

N.J. Stat. § 18A:72B-15 Short title

This act shall be known and may be cited as the "Independent College and University Assistance Act." L.1979, c. 132, s. 1, eff. July 6, 1979.

N.J. Stat. § 18A:72B-16 Legislative findings and determinations

The Legislature finds and determines that: a. This State remains committed by law and public policy to the development and preservation of a planned and diverse system of higher education which encompasses both public and independent institutions. Independent institutions make an important contribution to higher education in the State and it is in the public interest to assist these institutions in the provision and maintenance of quality academic programs. b. The provisions of this act will serve the cause of higher education in this State by assuring maximum educational choice among colleges and universities through the preservation of the vitality and quality of independent institutions of higher education in this State. L.1979, c. 132, s. 2, eff. July 6, 1979.

N.J. Stat. § 18A:72B-17 Definitions

3. As used in this act: a. "Eligible institution" or "institution" means only those independent institutions of higher education incorporated and located in this State, which, by virtue of law or character or license, are nonprofit educational institutions empowered to grant academic degrees and which provide a level of education which is equivalent to the education provided by the State's public institutions of higher education as attested by the receipt of and continuation of regional accreditation by the Middle States Association of Colleges and Schools, and which are eligible to receive State aid under the provisions of the Constitution of the United States and the Constitution of the State of New Jersey. "Eligible institution" does not include any educational institution dedicated primarily to the preparation or training of ministers, priests, rabbis, or other professional persons in the field of religion. b. "New Jersey student" means any resident of this State as defined pursuant to section 1 of P.L.1979, c.361 (C.18A:62-4). c. "Academic year" means the normal period of attendance, excluding summer session, for a full-time undergraduate student to make a year's progress toward a degree. d. "Full-time equivalent student in an eligible institution" means a unit of 32 undergraduate student credit hours. e. "Undergraduate student" means a student enrolled in a program leading to an associate or baccalaureate degree, or to a certificate, diploma or its equivalent, awarded by the institution. f. "Direct per student support for the State college sector" means the average direct net State support per budgeted full-time equivalent student at the State colleges. This average shall be derived from the General Appropriation Act for the pre-budget year by taking the sum of the total appropriation amounts for all State colleges, except Thomas A. Edison College of New Jersey, subtracting from that sum debt service and capital costs and the sum of anticipated revenues at the State colleges, except Edison College, for tuitions, other student fees, School of Conservation, and miscellaneous; and dividing the remainder by the total number of budgeted full-time equivalent students at the State colleges, as stipulated in language in said Appropriation Act. g. "Department" means the Department of the Treasury. h. (Deleted by amendment, P.L.1994, c.48). i. "Pre-budget year" means the fiscal year preceding the year in which the budget is implemented. L.1979,c.132,s.3; amended 1994,c.48,s.242.

N.J. Stat. § 18A:72B-18 Payment to institutions; formula; distribution of funds

4. The State Treasurer, subject to the availability of appropriations, is authorized to contract with eligible independent colleges and universities in this State to provide educational services to New Jersey students. Payment to the institutions shall be based upon the number of full-time equivalent New Jersey undergraduates enrolled during the pre-budget year in the independent institutions multiplied by 25% of the level of direct per student support for the State college sector during the pre-budget year. The total funding generated by the preceding formula shall be distributed as follows: a. Ten percent of this total shall be divided equally among the eligible institutions. These "designated" amounts shall be awarded to each institution except in any instance where the amount of dollars designated for a particular institution under this section exceeds the total amount to be awarded to that institution under subsections b. and c. of this section. In such instances, the funds designated under subsection a. shall be reduced to equal the total of subsections b. and c., which shall be the amount awarded to the institution under this section. The difference between the amount designated and the amount awarded under this section shall be returned to the department. b. Thirty-five percent shall be distributed on the basis of New Jersey students who received State financial aid or aid administered by such institutions of $1,000.00 or more, in all cases exclusive of loans, during the pre-budget year. c. Fifty-five percent shall be distributed on the basis of New Jersey full-time equivalent students, as herein defined, enrolled in such institutions during the pre-budget year. The funds granted under this act may be used by the institutions for any purposes which they deem to be appropriate to maintaining or enhancing the quality of the academic offerings available to New Jersey students, except for purposes of sectarian instruction, the construction or maintenance of sectarian facilities, or for any other sectarian purpose or activity. For the purposes of this act the number of full-time equivalent students at the eight State colleges for the 1979-80 academic year is 54,380. L.1979,c.132,s.4; amended 1994,c.48,s.243.

N.J. Stat. § 18A:72B-19 Maintenance of funds; audit of records

5. Funds received by an institution pursuant to this act shall be maintained in a separate ledger account. Each institution shall cause an audit of such account and of enrollment figures to be made annually by a certified public accountant and forwarded to the treasurer. The treasurer shall have the right to audit institutional records pertaining to this act. Each institution also shall furnish to the treasurer a copy of its audited annual financial statement. L.1979,c.132,s.5; amended 1994,c.48,s.244; 1999,c.46,s.51.

N.J. Stat. § 18A:72B-20 Suspension and recovery of funds

6. In the event any institution shall expend such funds in violation of the provisions of this act or the rules or regulations of the treasurer, the treasurer may suspend further aid to such institutions and recover any such funds theretofore misspent. L.1979,c.132,s.6; amended 1994,c.48,s.245.

N.J. Stat. § 18A:72B-21 Inapplicability of prohibition on disbursements to denominational schools

The provisions of N.J.S. 18A:62-2 shall not be applicable to this act. L.1979, c. 132, s. 7, eff. July 6, 1979.

N.J. Stat. § 18A:72B-22 Rules and policies

8. The State Treasurer shall promulgate rules and adopt policies and make all determinations necessary for the proper administration and enforcement of the provisions of this act. L.1979,c.132,s.8; amended 1994,c.48,s.246.

N.J. Stat. § 18A:72B-23 Severability

If any part of this act shall be held invalid, such holding shall not affect the validity of the remaining parts of this act. If a part of this act is invalid in one or more of its applications, the remaining parts of this act shall remain in effect in all valid applications that are severable from the invalid application. L.1979, c. 132, s. 10, eff. July 6, 1979.

N.J. Stat. § 18A:72B-24 Reduction of distributions if funds insufficient

If the funds appropriated for the purposes of this act are insufficient to provide full funding under the formula contained herein, then the funds shall be distributed to eligible institutions on a pro rata basis with each eligible institution receiving a proportionate reduction in funds. L.1979, c. 132, s. 11, eff. July 6, 1979.

N.J. Stat. § 18A:72B-25 "School" defined

1. As used in this act: "School" means the Morehouse School of Medicine in Atlanta, Georgia. L.1987,c.312,s.1; amended 1994,c.48,s.247.

N.J. Stat. § 18A:72B-26 Contract for acceptance of New Jersey residents

2. The State Treasurer is authorized to contract with the Morehouse School of Medicine for the acceptance of New Jersey residents to study medicine. L.1987,c.312,s.2; amended 1994,c.48,s.248.

N.J. Stat. § 18A:72B-27 Eligibility

3. Commencing with the first year class to be admitted for the 1987-88 academic year, the treasurer shall contract with the school for the acceptance of two to four medical students. The students shall be residents of New Jersey who are from a disadvantaged or minority background and are certified as eligible by the treasurer. Admission of eligible applicants is based solely on academic merit. L.1987,c.312,s.3; amended 1994,c.48,s.249.

N.J. Stat. § 18A:72B-28 Review of admissions procedures, records

4. The treasurer, at his discretion, shall periodically review the school's admissions procedures and records to determine if these procedures comply with the terms of the contract. L.1987,c.312,s.4; amended 1994,c.48,s.250.

N.J. Stat. § 18A:72B-29 Financial assistance

Any student admitted to the school pursuant to this act is eligible for all financial assistance in the same manner as if the student is attending an institution of higher education in New Jersey. L. 1987, c. 312, s. 5.

N.J. Stat. § 18A:72B-30 $11,000 per year per student

6. The treasurer shall pay to the school $11,000.00 per year for each eligible student attending the school pursuant to this act, provided that the school charges the student only the tuition and fees required of resident students. Any showing of a discriminatory practice against a student admitted pursuant to this act in areas such as tuition, financial aid, the quality of instruction or housing or any other area is grounds for termination of the contract by the board. L.1987,c.312,s.6; amended 1994,c.48,s.251.

N.J. Stat. § 18A:72B-31 Conditions

7. a. To be certified by the treasurer as eligible for admission to the school pursuant to this act, the applicant shall (1) be a resident of New Jersey for at least 12 months; and (2) enter into a written agreement to practice medicine for at least four years following the completion of training in an area of the State designated by the Commissioner of Health as one with a shortage of physicians. b. No student admitted to the study of medicine at a medical school within this State shall be certified by the treasurer as eligible for admission to the school pursuant to this act. c. Each agreement shall provide (1) that if the applicant fails to complete medical school, the applicant is liable to reimburse the treasurer for the amount paid to the school to support his education, plus interest in an amount equal to the current prevailing market rate; and (2) that if the applicant, upon licensure as a physician, fails to practice in the designated area for four years, the applicant is liable to reimburse the treasurer for the amount paid to the school to support his education, plus interest in an amount equal to twice the current prevailing market rate. The agreement shall also contain a clause under which the applicant consents to the exercise of jurisdiction over the cause of action by the courts of New Jersey and the execution of a judgment rendered by the New Jersey courts in any jurisdiction. d. The treasurer may waive the requirement of reimbursement upon the death or disability of the individual. L.1987,c.312,s.7; amended 1994,c.48,s.252.

N.J. Stat. § 18A:72B-32 Resident training program

8. The school, at a time agreed upon with the treasurer, shall implement a resident training program with a New Jersey hospital, if it is determined that an appropriate out-of-State training program is not available. L.1987, c.312, s.8; amended 1994,c.48,s.253.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026