Amend the bill, as and if amended, by adding two appropriately numbered SECTIONS to read:
/ SECTION __.
A. This section is known and may be cited as the "South Carolina Higher Education Efficiency and Administrative Policies Act of 2011".
B. 1. Article 2, Chapter 101, of the 1976 Code is amended by adding:
"Section 59-101-670.
(A) Project Proposals.
Notwithstanding another provision of law, a public institution
of higher learning that intends to establish a permanent
improvement project shall submit a preliminary request to the
Joint Bond Review Committee and receive favorable review from
the Joint Bond Review Committee before any funds may be expended
for architectural and engineering services for the project. In
addition, the public institution of higher learning shall submit
the permanent improvement project proposal to the Commission on
Higher Education for information purposes only. The commission
may make nonbinding recommendations concerning the proposal to
the Joint Bond Review Committee and the public institution of
higher learning. A preliminary request shall include:
(1)
a complete description of the proposed project;
(2)
a statement of justification of the proposed project;
(3)
a statement of the purposes and intended uses of the
proposed project;
(4)
the estimated total cost of the proposed project;
(5)
an estimate of the additional future annual operating
costs associated with the proposed project;
(6)
a statement on the expected impact of the proposed project
on the five-year operating plan of the public institution
proposing the project;
(7)
a proposed plan of financing the project, specifically
identifying funds proposed from sources other than capital
improvement bond authorizations; and
(8)
the specification of the priority of each project among
those proposed.
(B) Project
Establishment. Upon completion of the architectural and
engineering plans, including an estimated total cost of the
project, a public institution of higher learning concurrently
shall submit to the Joint Bond Review Committee and the Budget
and Control Board the project proposal for review by both
bodies. In addition, the public institution of higher learning
shall submit the permanent improvement project proposal to the
Commission on Higher Education for information purposes only.
The commission may make nonbinding recommendations concerning
the proposal to the Joint Bond Review Committee, the Budget and
Control Board, and the public institution of higher learning.
In making its proposal, the public institution of higher
learning shall include:
(1)
a complete description of the proposed project;
(2)
a statement of justification of the proposed project;
(3)
a statement of the purposes and intended uses of the
proposed project;
(4)
the estimated total cost of the proposed project;
(5)
an estimate of the additional future annual operating
costs associated with the proposed project;
(6)
a statement on the expected impact of the proposed project
on the five-year operating plan of the public institution
proposing the project;
(7)
a proposed plan of financing the project, specifically
identifying funds proposed from sources other than capital
improvement bond authorizations; and
(8)
the specification of the priority of each project among
those proposed.
(C) The Joint Bond
Review Committee and the Budget and Control Board shall notify
the institution of their favorable review or approval of the
permanent improvement project, as per their authority, within
forty-five days of receipt of the proposal. The review of the
Joint Bond Review Committee must be rendered by the collective
body. The Budget and Control Board only is required to meet to
discuss the project if the Governor with an additional two of
the five members of the board express opposition or concerns of
the project in writing. This letter must be sent by the
Governor's office to all Budget and Control Board members and
the public institution of higher learning board of trustees
within the forty-five day time period. A permanent improvement
project proposal is deemed to be favorably reviewed by the Joint
Bond Review Committee and approved by the Budget and Control
Board if either fails to notify the public institution of higher
learning of its finding within forty-five days of receipt of the
proposal.
(D) Except as provided
in subsection (E)(2), a proposal to finance all or any part of
any project using any funds not previously authorized
specifically for the permanent improvement project by the
General Assembly or using any funds not previously approved for
the project must be referred to the Joint Bond Review Committee
for its review and the Budget and Control Board for its approval
prior to implementation by the public institution of higher
learning.
(E)(1) A proposed
revision of the scope that exceeds the total cost of subsection
(E)(2) is deemed substantial and must be reviewed by the Joint
Bond Review Committee and approved by the Budget and Control
Board prior to any final action by the public institution of
higher learning. In making their determinations regarding
changes in project scope, the committee and board shall utilize
the permanent improvement project proposal and justification
statements, together with supporting documentation considered at
the time the project was authorized or established originally.
Except as provided in subsection (E)(2), a proposal to increase
the budget of a previously approved project by the institution
of higher learning must be deemed in all cases to be a
substantial revision of a project budget which must be referred
to the committee for review and to the board for its
approval.
(2)
Notwithstanding subsection (E)(1), a previously approved
improvement project undertaken by a public institution of higher
learning, whose total costs increase not more than ten percent
of the most recently approved total costs, not to exceed two
million dollars, is not required to have that proposal reviewed
by the Joint Bond Review Committee and the Budget and Control
Board. The proposal, however, is subject to staff level review
of the Joint Bond Review Committee.
(F)(1) For purposes of
this section, with regard to public institutions of higher
learning, a permanent improvement project is defined as:
(a)
acquisition of land costing more than two hundred fifty
thousand dollars. For the acquisition of land costing two
hundred fifty thousand dollars or less, the proposal is subject
to staff level review;
(b)
acquisition, as opposed to the construction, of buildings
or other structures costing more than two hundred fifty thousand
dollars. For the acquisition, as opposed to construction, of
building or other structures costing two hundred fifty thousand
dollars or less, the proposal is subject to staff level review;
(c)
work on existing facilities for any given project
including their renovation, repair, maintenance, alteration, or
demolition in those instances in which the total cost of all
work involved is one million dollars or more;
(d)
capital lease purchase of a facility acquisition or
construction in which the total cost is one million dollars or
more;
(e)
equipment that either becomes a permanent fixture of a
facility or does not become permanent but is included in the
construction contract must be included as a part of a project in
which the total cost is one million dollars or more; and
(f)
new construction of a facility that exceeds a total cost
of five hundred thousand dollars.
(2)
A permanent improvement project that meets the definition
provided in subsection (F)(1) must become a project, regardless
of the source of funds.
(G) For projects
submitted to the Joint Bond Review Committee and the Budget and
Control Board for review, the committee and the board may
request the assistance of the Office of the State Treasurer to
review the feasibility and financing structure of the
project.
(H) For purposes of
establishing permanent improvement projects, Clemson University
Public Service Activities (Clemson-PSA) and South Carolina State
University Public Service Activities (SC State-PSA), are subject
to the provisions of this chapter."
2. The general effective date otherwise provided in this section does not apply the provisions of this subsection B.1. The provisions of this subsection become effective upon approval of this act by the Governor and apply to proposals offered by a public institution of higher learning offered after the effective date of this section.
C. Article 2, Chapter 53, Title 59 of the 1976 Code is amended by adding:
"Section 59-53-168.
(A) The State Board for Technical and
Comprehensive Education (state board) is granted the authority
to employ and administer certain administrative efficiency
provisions provided in Sections 2-47-53, 2-47-54, 59-147-30,
11-35-1210, 11-35-1550(2), 11-35-3310, 11-35-4810, 1-7-170,
59-101-620, and 1-11-55(2) of the 1976 Code. The state board
shall establish a tiered system for categorizing technical
colleges with respect to their financial strength and ability to
manage day-to-day operations. Technical colleges, by way of
application from their area commissions, may request the state
board apply these administrative efficiency provisions to their
respective institutions. The state board shall review the
technical college's request and determine the proper category
for the technical college.
(B) The state board
shall establish an advisory board to provide oversight and
review of the provisions of this chapter. The state board shall
submit an annual report on oversight to the Governor, the
Chairman of the House Ways and Means Committee, and the Chairman
of the Senate Finance Committee by November fifteenth of each
year and shall submit a report every two years to include how
changes have benefitted the agency to the Governor and the
Chairmen of the House Ways and Means Committee, the Senate
Finance Committee, the House Education and Public Works
Committee, and the Senate Education Committee."
D. Section 59-147-30 of the 1976 Code, as last amended by Act 2 of 2009, is further amended to read:
"Section 59-147-30.
Subject to the approval favorable
review of the State Budget and Control Board by
resolution duly adopted, Joint Bond Review
Committee, approval of the institutional board, as defined by
Section 2-47-53(G), and the provisions of Sections 59-147-42 and
59-147-43, the university may issue revenue bonds of the
university for the purpose of financing or refinancing in whole
or in part the cost of acquisition, construction,
reconstruction, renovation and improvement of land, buildings,
and other improvements to real property and equipment for the
purpose of providing facilities serving the needs of the
university including, but not limited to:
(1) dormitories,
apartment buildings, dwelling houses, bookstores and other
university operated stores, laundries, dining halls, cafeterias,
parking facilities, student recreational, entertainment and
fitness related facilities, inns, conference and other nondegree
educational facilities and similar auxiliary facilities of the
university and any other facilities which are auxiliary to any
of the foregoing excluding, however, athletic department
projects which primarily serve varsity athletic teams of the
university; and
(2) those academic
facilities as may be authorized by joint resolution of the
General Assembly."
E. Chapter 147, Title 59 of the 1976 Code is amended by adding:
"Section 59-147-42.
By resolution duly adopted pursuant to the requirements of
Section 59-147-40, the institutional board shall transmit to the
State Treasurer a request for the issuance of revenue bonds.
The request must include:
(1) the name of the
institution requesting issuance of revenue bonds, the amount of
revenue bonds requested for issuance, and the annual principal
and interest requirements on all then outstanding revenue
bonds;
(2) a statement that
the institutional board has made the findings required of it by
Section 59-147-40;
(3) the proposed
maturity schedule of the bonds;
(4) the anticipated
aggregate annual principal and interest requirements for the
bonds;
(5) the numbers and
maturity dates of the bonds which are subject to redemption
prior to their stated maturities;
(6) the proposed
redemption premium schedule;
(7) the actual and
projected revenues anticipated to be pledged by the institution
supporting issuance of the bonds; and
(8) any other
schedules, analyses, and documents prescribed by the State
Treasurer which, in his discretion, are necessary to support the
request for issuance of revenue bonds pursuant to this
chapter."
F. Chapter 147, Title 59 of the 1976 Code is amended by adding:
"Section 59-147-43. The State Treasurer shall examine the request provided pursuant to Section 59-147-42, and if he determines that the facts and circumstances support the request for issuance of revenue bonds pursuant to this chapter, he shall provide for the issuance of revenue bonds in the amount approved by the institutional board."
G. Chapter 101, Title 59 of the 1976 Code is amended by adding:
Section 59-101-1010. As
used in this article:
(1) 'Bond acts' means
the various revenue bond acts for public institutions, including
those identified in this item and also including any others not
identified in this item.
(a)
University of South Carolina:
(i)
Act 518 of 1980 - Athletic Facilities
Revenue Bonds;
(ii)
Act 366 of 2008 - Business School Revenue Bonds;
(iii)
Article 3, Chapter 117, Title 59 - Auxiliary Facilities
Revenue Bonds;
(b)
Clemson University:
(i)
Article 5, Chapter 119, Title 59 -
Clemson Revenue Bonds;
(ii)
Article 9, Chapter 119, Title 59 - Athletic Facilities
Revenue Bonds;
(iii)
Article 7, Chapter 119, Title 59 - Auxiliary Facilities
Revenue Bonds;
(c)
Medical University of South Carolina:
(i)
Act 392 of 1982 - Student and Faculty
Housing Facilities;
(d)
The Citadel:
(i)
Article 3, Chapter 121, Title 59 -
Citadel Athletic Facilities Bonds;
(ii)
Chapter 122, Title 59 - The Citadel Housing Revenue
Bonds;
(e)
College of Charleston:
(i)
Chapter 130, Title 59 - Revenue
Bonds;
(ii)
Chapter 131, Title 59 - Parking Facilities at the College
of Charleston;
(iii)
Act 1281 of 1970 - Student and Faculty Housing Revenue
Bonds and Plant Improvement Bonds;
(iv)
Act 77 of 1975 - Parking Facilities Revenue Bonds;
(v)
Act 653 of 1978 - Student and Housing Revenue Bonds;
(f)
South Carolina State University:
(i)
Article 3, Chapter 127, Title 59 -
Special Obligations Bonds;
(ii)
Article 4, Chapter 127, Title 59 - South Carolina State
University Academics and Admissions Faculty Facilities
Bonds;
(g)
Winthrop University:
(i)
Article 3, Chapter 125, Title 59 -
Winthrop University Facilities Revenue Bond Act;
(ii)
Article 5, Chapter 125 - Winthrop University Athletic
Facilities Bonds;
(iii)
Act 488 of 1965 - Student and Faculty Housing Revenue
Bonds;
(h)
Coastal Carolina University:
(i)
Article 3, Chapter 136, Title 59 -
Revenue Bonds;
(i)
Lander University:
(i)
Act 1305 of 1974 - Student and
Faculty Housing Revenue Bonds;
(j)
Francis Marion University:
(i)
Act 653 of 1978 - Student and Faculty
Housing Revenue Bonds;
(ii)
Article 3, Chapter 133, Title 59 - Athletic Facilities
Revenue Bonds.
(2) 'Public institution
of higher learning' is defined by Section 59-103-5.
Section 59-101-1020. All authority and duties of the State Budget and Control Board with respect to bond acts is devolved upon the Joint Bond Revenue Committee established pursuant to Chapter 47, Title 2, for review and approval by the corresponding institutional board pursuant to this title."
H. Section 11-35-1210 of the 1976 Code, as last amended by Act 376 of 2006, is further amended by adding an appropriately numbered item at the end to read:
"( ) Subject to item (1), the State Board for Technical and Comprehensive Education, in coordination with the appropriate Chief Procurement Officer, may approve a cumulative total of up to fifty thousand dollars in additional procurement authority for technical colleges, provided that the designated board office makes no material audit findings concerning procurement. As provided by regulation, any authority granted pursuant to this paragraph is effective when certified in writing by the designated board office."
I. Section 11-35-1550(2) of the 1976 Code, as last amended by Act 376 of 2006, is further amended to read:
"(2) Competition
and Price Reasonableness.
(a)
Purchases not in excess of two thousand five hundred
dollars. Except as provided in subitem (d), small
purchases not exceeding two thousand five hundred dollars may be
accomplished without securing competitive quotations if the
prices are considered reasonable. The purchasing office must
annotate the purchase requisition: 'Price is fair and
reasonable' and sign. The purchases must be distributed
equitably among qualified suppliers. When practical, a
quotation must be solicited from other than the previous
supplier before placing a repeat order. The administrative cost
of verifying the reasonableness of the price of purchase 'not in
excess of' may more than offset potential savings in detecting
instances of overpricing. Action to verify the reasonableness
of the price need be taken only when the procurement officer of
the governmental body suspects that the price may not be
reasonable, comparison to previous price paid, or personal
knowledge of the item involved.
(b)
Purchases over two thousand five hundred dollars to ten
thousand dollars. Except as provided in subitem (d),
solicitation of written quotes from a minimum of three qualified
sources of supply must be made and documentation of the quotes
attached to the purchase requisition for a small purchase over
two thousand five hundred dollars but not in excess of ten
thousand dollars. The award must be made to the lowest
responsive and responsible sources.
(c)
Purchases over ten thousand dollars up to fifty thousand
dollars. Written solicitation of written quotes, bids, or
proposals must be made for a small purchase over ten thousand
dollars but not in excess of fifty thousand dollars. The
procurement must be advertised at least once in the South
Carolina Business Opportunities publication or through a means
of central electronic advertising as approved by the designated
board office. A copy of the written solicitation and written
quotes must be attached to the purchase requisition. The award
must be made to the lowest responsive and responsible source or,
when a request for proposal process is used, the highest ranking
offeror.
(d)
For public institutions of higher learning in
this State excluding technical colleges, small purchase amounts
to which the provisions of subitem (a) apply are those purchases
not exceeding ten thousand dollars, and for these purchases
subitem (b) above does not apply. In addition, purchasing cards
of the institution for these purchases also may be used by
officials or employees of the institution as the governing board
approves.
(e)
For technical colleges as authorized by the
State Board for Technical and Comprehensive Education, small
purchase amounts to which the provisions of item (2)(a) apply
are those purchases that do not exceed ten thousand dollars.
The State Board for Technical and Comprehensive Education shall
approve this authority for technical colleges. In addition, if
authority is approved, technical colleges may use purchasing
cards for these purchases."
J. Section 11-35-3310 of the 1976 Code, as last amended by Act 174 of 2008, is further amended to read:
"Section 11-35-3310.
(1) General Applicability. Indefinite
delivery contracts may be awarded on an as-needed basis for
construction services pursuant to the procedures in Section
11-35-3015(2)(b) and for architectural-engineering and land
surveying services pursuant to Section 11-35-3220.
(a)
Construction Services. When construction services
contracts are awarded, each contract shall
must be limited to a total expenditure of seven hundred
fifty thousand dollars for a two-year period with individual
project expenditures not to exceed one hundred fifty thousand
dollars; provided, that these limits for public institutions
of higher learning, as defined by Section 59-103-5, in this
subitem are one million dollars for total expenditures and two
hundred fifty thousand dollars for individual expenditures
within the time periods specified.
(b)
Architectural-Engineering and Land Surveying Services.
When architectural-engineering and land surveying services
contracts are awarded, each contract shall be limited to a total
expenditure of three hundred thousand dollars for a two-year
period with individual project expenditures not to exceed one
hundred thousand dollars; provided, that these limits for
public institutions of higher learning, as defined by Section
59-103-5, in this subitem are five hundred thousand dollars for
total expenditures and two hundred thousand dollars for
individual expenditures within the time periods specified.
(2) Small Indefinite
Delivery Contracts. Small indefinite delivery contracts for
architectural-engineering and land surveying services may be
procured as provided in Section 11-35-3230. A contract
established under this section shall be
is subject to and included in the limitations for
individual and total contract amounts provided in Section
11-35-3230, and any regulations promulgated thereunder except
that the individual and total contract limits are fifty and one
hundred fifty thousand dollars respectively for public
institutions of higher learning, as defined by Section
59-103-5."
K. Section 11-35-4810 of the 1976 Code, as last amended by Act 153 of 1997, is further amended to read:
"Section 11-35-4810.
Any A public procurement unit may
participate in, sponsor, conduct, or administer a cooperative
purchasing agreement for the procurement of any supplies,
services, or construction with one or more public procurement
units or external procurement activities in accordance with an
agreement entered into between the participants.
Such This cooperative purchasing may
include, but is may not be
limited to, joint or multi-party
multiparty contracts between public procurement units and
open-ended state public procurement unit contracts which
shall may be made available to local
public procurement units, except as provided in Section
11-35-4820 or except as may otherwise
may be limited by the board through regulations.
However, thirty days notice of a proposed
multi-state solicitation shall must be
provided through central advertising and such contracts may be
only awarded to manufacturers who will be distributing the
products to South Carolina governmental bodies through South
Carolina vendors; provided, however, that the provisions of
this paragraph do not apply to public institutions of higher
learning if the institution demonstrates a cost savings to the
Office of State Procurement in regard to the multistate
solicitation and procurement."
L. Section 1-7-170 of the 1976 Code, as added by Act 353 of 2008, is amended to read:
"Section 1-7-170.
(A) A department or agency of
state government may not engage on a fee basis an attorney at
law except upon the written approval of the Attorney General and
upon a fee as must be approved by him. This section does not
apply to the employment of attorneys in special cases in
inferior courts when the fee to be paid does not exceed two
hundred fifty dollars or exceptions approved by the State Budget
and Control Board. This section does not apply to an attorney
hired by the General Assembly or the judicial department.
(B) A public
institution of higher learning shall engage and compensate
outside counsel in accordance with policies and procedures
adopted by the State Budget and Control Board for matters of
bonded indebtedness, public finance, borrowing, and related
financial matters."
M. Article 1, Chapter 101, Title 59 of the 1976 Code, as added by Act 143 of 2005, is amended by adding:
"Section 59-101-55. State appropriated funds may not be used to provide out-of-state subsidies to students attending state-supported public institutions of higher learning."
N. Chapter 112, Title 59 of the 1976 Code is amended by adding:
"Section 59-112-115. When the governing board of a public institution of higher learning, excluding technical colleges, adopts a change to the tuition or fees imposed on students, the change may be implemented by the institution only after a public vote with the number of trustees voting for and against the change being counted. A majority vote is required to implement any change to the tuition or fees. For technical colleges, when the local area commission of a technical college adopts a change to the tuition or fees imposed on students, the change may be implemented by the technical college only after a public vote with the number of local area commissioners voting for and against the change being counted. A majority vote is required to implement any change to the tuition or fees. A change to tuition or fees adopted by the local area commission must be reported to the State Board for Technical and Comprehensive Education within five business days."
O. Section 1-11-55(2) of the 1976 Code is amended to read:
"(2) The
State Budget and Control Board is hereby designated as
the single central broker for the leasing of real property for
governmental bodies. No A governmental
body shall enter into any lease agreement or renew any existing
lease except only in accordance with the
provisions of this section, except that institutional boards
shall approve for public institutions of higher learning to
enter into any lease agreement or renew any lease up to
one-hundred thousand dollars annually for each property or
facility."
P. If any subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this section is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this section, the General Assembly hereby declaring that it would have passed this section, and each and every subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
Q. Unless otherwise provided, this section takes effect upon approval of this act by the Governor.
SECTION __. Chapter 112, Title 59 of the 1976 Code is amended by adding:
"Section 59-11-140. The area commission for the Florence-Darling Technical College may waive the requirements of this chapter for student participants in the Caterpillar Dealer Academy operated by Florence-Darlington Technical College." /
Renumber sections to conform.
Amend title to conform.