SECTION 3 - H660 - LOTTERY EXPENDITURE ACCOUNT

3.1. (LEA: Audit) Each state agency receiving lottery funds shall develop and implement procedures to monitor the expenditures of lottery funds in order to ensure that lottery funds are expended in accordance with applicable state laws, rules, and regulations.

For institutions of higher learning, adopted procedures to monitor expenditures of lottery funds shall be reported to the Commission on Higher Education and the Executive Budget Office by October, 1, 2016, and these expenditures are subject to annual verification and audit by the Commission on Higher Education on a rotational schedule not to exceed three years. The annual verification and audit shall be funded from the funds appropriated to or authorized for the Commission on Higher Education and the commission shall not assess a fee or charge institutions of higher learning for performing this function. In addition, the Commission on Higher Education shall provide a report to the Executive Budget Office, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee by October first each year summarizing, by institution, how lottery funds were expended in the prior fiscal year, issues and concerns as well as institution responses to those issues and concerns discovered as a result of the commissions verification and/or audit activity during the prior fiscal year, if any. For the Department of Education, adopted procedures to monitor expenditures of lottery funds that are allocated to the South Carolina school districts and other recipient institutions according to law and Department of Education guidelines shall be reported to the Executive Budget Office by October 1, 2016. In addition, the Department of Education shall provide a report to the Executive Budget Office, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee on the amount of lottery funds the department distributed to each entity in the prior fiscal year.

All other state agencies must submit their adopted procedures to monitor expenditures of lottery funds to the Executive Budget Office by October 1, 2016.

The Executive Budget Office shall ensure that state agencies receiving lottery funds have procedures in place to monitor expenditures of lottery funds and that the monitoring procedures are operating effectively.

3.2. (LEA: Election Day Sales) For the current fiscal year, Section 59-150-210(E) is suspended.

3.3. DELETED

3.4. DELETED

3.5. DELETED

3.6. (LEA: FY 2016-17 Lottery Funding) There is appropriated from the Education Lottery Account for the following education purposes and programs and funds for these programs and purposes shall be transferred by the Executive Budget Office as directed below. These appropriations must be used to supplement and not supplant existing funds for education.

The Executive Budget Office is directed to prepare the subsequent Lottery Expenditure Account detail budget to reflect the appropriations of the Education Lottery Account as provided in this section.

All Education Lottery Account revenue shall be carried forward from the prior fiscal year into the current fiscal year including any interest earnings, which shall be used to support the appropriations contained below.

Certified net lottery proceeds and investment earnings for Fiscal Year 2016-17 are appropriated as follows:

(1) Commission on Higher Education--LIFE Scholarships

as provided in Chapter 149, Title 59 $ 199,754,741;

(2) Commission on Higher Education--HOPE Scholarships as

provided in Section 59-150-370 $ 9,552,955;

(3) Commission on Higher Education--Palmetto Fellows

Scholarships as provided in

Section 59-104-20 $ 49,274,030;

(4) Commission on Higher Education and State Board for

Technical and Comprehensive Education--Tuition

Assistance $ 51,100,000;

(5) Commission on Higher Education--

Need-Based Grants $ 17,537,078;

(6) Higher Education Tuition Grants Commission--

Tuition Grants $ 8,330,008; and

(7) Department of Education--K-12 Technology

Initiative $ 23,822,432.

Fiscal Year 2015-16 surplus net lottery proceeds and investment earnings certified for Fiscal Year 2016-17 are appropriated as follows:

(1) Department of Education--School Bus

Lease/Purchase $ 6,500,000;

(2) Commission on Higher Education--Technology-Public

Four-Year Institutions, Two-Year Institutions, and State

Technical Colleges $ 2,242,212;

(3) State Board for Technical and Comprehensive Education--

Critical Training Equipment $ 2,000,000;

(4) Department of Education--Instructional

Material $ 18,000,000;

(5) Department of Education--College and

Career Readiness $ 3,000,000;

(6) Department of Education--Efficiency Study $ 3,100,000;

(7) Department of Education--Dynamic Report

Card System $ 1,695,000;

(8) Department of Education--Reading Partners $ 400,000;

(9) Department of Education--Mobile Device Access and

Management $ 3,000,000;

(10) Commission on Higher Education--

Need Based Grants $ 1;

(11) Department of Education--K12 Technology

Initiative $ 5,466,544; and

(12) Higher Education Tuition Grants Commission--SREB

Program and Assessments $ 313,456.

For Fiscal Year 2016-17, net lottery proceeds and investment earnings above the Fiscal Year 2015-16 certified surplus are appropriated pro-rata as follows:

(1) State Board for Technical and Comprehensive Education--

Workforce Scholarships/Grants $ 5,000,000;

(2) Commission on Higher Education--Higher Education

Excellence Enhancement Program $ 567,475;

(3) Department of Education--School Bus

Lease/Purchase $ 2,100,000;

(4) Department of Education--Mobile Device Access and

Management $ 1;

(5) Department of Education--Efficiency Study $ 1;

(6) State Board for Technical and Comprehensive Education--

Critical Training Equipment $ 912,307;

(7) Commission on Higher Education--Technology-Public

Four-Year Institutions, Two-Year Institutions, and State

Technical Colleges $ 5,000,000;

(8) University of South Carolina-Columbia--

Maintenance-Critical Care and

Replacement - 1 to 1 Match $ 1;

(9) Clemson University--Maintenance-Critical Care and

Replacement - 1 to 1 Match $ 1; and

(10) Medical University of South Carolina--Maintenance-Critical

Care and Replacement - 1 to 1 Match $ 1.

For Fiscal Year 2016-17, funds certified from unclaimed prizes are appropriated as follows:

(1) Department of Education--School Bus

Lease/Purchase $ 3,500,000;

(2) State Board for Technical and Comprehensive Education--

Workforce Scholarships/Grants $ 1;

(3) South Carolina State University $ 2,500,000;

(4) Commission on Higher Education--Higher Education

Excellence Enhancement Program $ 5,504,999;

(5) Commission on Higher Education--National Guard Tuition

Repayment Program as provided in

Section 59-111-75 $ 4,545,000;

(6) Department of Alcohol and Other Drug Abuse Services--

Gambling Addiction Services $ 50,000;

(7) School for the Deaf and the Blind--

Technology $ 200,000; and

(8) State Library--Aid to County Libraries $ 1,700,000.

If the lottery revenue received from certified unclaimed prizes for Fiscal Year 2016-17 is less than the amounts appropriated, the projects and programs receiving appropriations for any such year shall have their appropriations reduced on a pro rata basis.

Any unclaimed prize funds available in excess of the Board of Economic Advisors estimate shall be appropriated as follows:

(1) Commission on Higher Education--PASCAL

Program $ 1,412,514;

(2) Department of Education--School Bus

Lease/Purchase $ 1,000,000;

(3) State Board for Technical and Comprehensive Education--

Manufacturing, Healthcare, and STEM Education

and Training $ 15,000,000;

(4) Commission on Higher Education--Higher Education

Excellence Enhancement Program $ 2,631,137; and

(5) Commission on Higher Education--

Need-Based Grants $ 3,000,000.

Fiscal Year 2016-17 funds appropriated to the Commission on Higher Education and the State Board for Technical and Comprehensive Education for Tuition Assistance must be distributed to the technical colleges and two-year institutions as provided in Section 59-150-360. Annually the State Board for Technical and Comprehensive Education and the Commission on Higher Education shall develop the Tuition Assistance distribution of funds.

The provisions of Section 2-75-30 of the 1976 Code regarding the aggregate amount of funding provided for the Centers of Excellence Matching Endowment are suspended for the current fiscal year.

The Commission on Higher Education is authorized to temporarily transfer funds between appropriated line items in order to ensure the timely receipt of scholarships and tuition assistance. It is the goal of the General Assembly to fund the Tuition Assistance program at such a level to support at least $996 per student per term for full time students.

Fiscal Year 2016-17 net lottery proceeds and investment earnings in excess of the certified net lottery proceeds and investment earnings for this period are appropriated and must be used to ensure that all LIFE, HOPE, and Palmetto Fellows Scholarships for Fiscal Year 2016-17 are fully funded.

If the lottery revenue received for Fiscal Year 2016-17 is less than the amounts appropriated, the projects and programs receiving appropriations for any such year shall have their appropriations reduced on a pro rata basis, except that a reduction must not be applied to the funding of LIFE, HOPE, and Palmetto Fellows Scholarships.

The Commission on Higher Education is authorized to use up to $345,000 of the funds appropriated in this provision for LIFE, HOPE, and Palmetto Fellows scholarships to provide the necessary level of program support for the scholarship award process and to provide for a Scholarship Compliance Auditor.

Of the funds appropriated to the Commission on Higher Education for institutions of higher learning entitled Technology-Public Four Year Institutions, Two Year Institutions, and State Technical Colleges, the commission shall allocate the realized funds on a proportional basis as follows:

(1) The Citadel................................................... $ 307,628;

(2) University of Charleston.............................. $ 643,395;

(3) Coastal Carolina University.......................... $ 573,411;

(4) Francis Marion University............................ $ 293,497;

(5) Lander University........................................ $ 301,439;

(6) South Carolina State University.................... $ 276,399;

(7) USC - Aiken Campus................................... $ 269,987;

(8) USC - Upstate ............................................. $ 366,549;

(9) USC - Beaufort Campus............................... $ 200,669;

(10) USC - Lancaster Campus............................. $ 75,440;

(11) USC - Salkehatchie Campus......................... $ 75,440;

(12) USC - Sumter Campus................................. $ 75,440;

(13) USC - Union Campus................................... $ 75,440;

(14) Winthrop University..................................... $ 388,130; and

(15) State Technical Colleges and State Board for

Technical and Comprehensive Education. $ 3,319,348.

In accordance with Section 59-150-356 of the 1976 Code, each institution shall use the amount appropriated only for technology repair and related technology maintenance and/or upgrades that are necessary to support an institution's educational purpose.

Prior to the utilization of these funds, institutions must certify to the Commission on Higher Education, in a manner it prescribes, the extent to which they have met this requirement.

Not later than one hundred twenty days after the close of the fiscal year, the Commission on Higher Education shall report to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee regarding the utilization of this provision.

Funds not expended in the prior fiscal year may be carried forward into the current fiscal year and utilized for the same purpose, subject to certification from the Commission on Higher Education they continue to meet the requirement of this provision.

Of the funds appropriated above to the State Board for Technical and Comprehensive Education for Critical Training Equipment, the State Board shall allocate the realized funds on a proportional basis as follows:

(1) Aiken Technical College.............................. $ 157,732;

(2) Central Carolina Technical College.............. $ 165,234;

(3) Denmark Technical College......................... $ 83,432;

(4) Florence-Darlington Technical College........ $ 172,296;

(5) Greenville Technical College....................... $ 269,810;

(6) Horry-Georgetown Technical College.......... $ 213,535;

(7) Midlands Technical College......................... $ 221,557;

(8) Northeastern Technical College.................... $ 128,984;

(9) Orangeburg-Calhoun Technical College....... $ 161,357;

(10) Piedmont Technical College......................... $ 198,705;

(11) Spartanburg Community College.................. $ 171,418;

(12) Technical College of the Lowcountry.......... $ 144,362;

(13) Tri-County Technical College...................... $ 199,914;

(14) Trident Technical College............................ $ 325,470;

(15) Williamsburg Technical College................... $ 124,150; and

(16) York Technical College................................ $ 174,351.

The Higher Education Tuition Grants Commission is authorized to use up to $70,000 of the funds appropriated in this provision for Tuition Grants to provide the necessary level of program support for the grants award process.

Funds appropriated to the Department of Education for the K-12 Technology Initiative shall be distributed to the public school districts of the state, the special schools of the state and the South Carolina Public Charter School District, per pupil, based on the previous years one hundred thirty-five day average daily membership, according to the below calculations: (1) For a school district with a poverty index of less than 75: $35 per ADM; (2) For a school district with a poverty index of at least 75 but no more than 85: $50 per ADM; or (3) For a school district with a poverty index of greater than 85 or a special school with no defined poverty index: $70 per ADM. Poverty will be defined as determined for the poverty add on weight in Proviso 1.3 of this Act.

The Department of Education may adjust the per-ADM rates for each of the three classes defined above in order to conform to actual levels of student attendance and available appropriations, provided that the per-ADM rate for each class is adjusted by the same percentage.

Funds distributed to a school district through the K-12 Technology Initiative may only be used for the following purposes: (1) To improve external connections to schools, with a goal of reaching at least 100 kilobits per second, per student in each school by 2017; (2) To improve internal connections within schools, with a goal of reaching at least 1 megabit per second, per student in each school by 2017; or (3) To develop or expand one-to-one computing initiatives.

A school district that has achieved each of the above goals may submit a plan to the K-12 Technology Initiative Committee for permission to expend its allocation on other technology-related uses; such permission shall not be unreasonably withheld and the K-12 Technology Committee must permit districts to appeal any process should a district not receive approval and must provide technical assistance to districts in developing plans should the district request such.

Funds appropriated for the K-12 Technology Initiative may not be used to supplant existing school district expenditures on technology. By June 30, 2017, each school district that receives funding through the K-12 Technology Initiative during Fiscal Year 2016-17 must provide the K-12 Technology Initiative Committee with an itemized report on the amounts and uses of these funds, using a form developed by the Education Oversight Committee. In this report, a school district must provide information on its efforts to obtain reimbursements through the E-Rate Schools and Libraries Program administered by the Universal Service Administrative Company. Within its available resources, the K-12 Technology Initiative Committee shall support school districts efforts to obtain these reimbursements.

Funds appropriated to the Department of Education for Reading Partners shall be allocated to Reading Partners and must be used to increase the number of reading interventions for students in low performing schools in grades K-5. The Office of Early Learning and Literacy shall specify planning criteria to be submitted by Reading Partners no later than July 15, 2016. Planning criteria shall include, but is not limited to, pre and post assessment data, parental and family literacy engagement, summer learning support and building school level capacity for intervention. The department shall report to the Governor, the Chairman of the Senate Finance Committee, the Chairman of the Senate Education Committee, the Chairman of the House Ways and Means Committee and the Chairman of the House Education Committee by June 15, 2017 on the impact of the program.

Funds appropriated to the Department of Education for Mobile Device Access and Management shall be disbursed to school districts to procure high-speed mobile internet service for students that lack such internet service at home and are participating in a course of study that requires such access, as demonstrated by the school district. Districts requesting funding shall make application to the South Carolina K-12 Technology Committee in a form approved by the committee and the Department of Education detailing, at a minimum, the proposed uses of such mobile internet service, the number of students eligible for the service, the process used to determine student eligibility, and the process by which the devices will be secured and use-restricted to prevent breach or misuse. The Committee may approve requests in whole or in-part as funds are available.

The Department of Administration, Division of Technology may disapprove applications if the districts mobile device management plans are insufficient to properly secure mobile internet devices issued to students. The Division of Technology may offer mobile device management services to applicant districts in lieu of a district-specific plan.

The funds appropriated above for South Carolina State University shall be utilized by the Interim Board of Trustees for administrative functions of the interim board, payments of debt, and for any other purpose deemed necessary by the interim board.

The funds appropriated to State Board for Technical and Comprehensive Education for Workforce Scholarships and Grants shall be used to provide grants for tuition, fees, transportation, or textbook expenses to South Carolina residents enrolled in a career education program that meets all eligibility guidelines promulgated by the State Board for Technical and Comprehensive Education in consultation with the Department of Education. Grants may be awarded from the fund in an amount not exceeding ten thousand dollars or the total cost of attendance, whichever is less, for students to attend the program of their choice at a South Carolina technical school or professional certification program. By March fifteenthof the academic year provided, the State Board for Technical and Comprehensive Education shall provide a report to the Chairman of House Ways and Means Committee and the Chairman of the Senate Finance Committee containing a list of programs, amount of funding spent per program, number of students that received grants, and the grant amount per student.

On or before December 31, 2016, the Department of Education, in cooperation with the Commission on Higher Education, shall provide a report to the Governor, the Chairman of the Senate Education Committee, the Chairman of the House Education and Public Works Committee, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee regarding the costs and opportunities of the change to the States Uniform Grading Policy from a 7-point scale to a 10-point scale. The report shall include, but not necessarily be limited to, the projected impact, if any, that the change may have on the States merit based scholarship programs, recommendations on how to fund the projected impact, if any, to the States merit based scholarship programs, and suggested alternatives to mitigate the projected impact, if any, to the States merit based scholarship programs. Alternatives, if any, may include potential changes to the States merit based scholarship criteria including GPA or testing requirements.

Any lottery revenue in excess of the total amount of money appropriated by this proviso shall be held for appropriation by the General Assembly in the future to offset scholarship needs as a result of population growth and changes to the states grading scale by the Department of Education.