SECTION 11 - H03-COMMISSION ON HIGHER EDUCATION

     11.1.     (CHE: Contract for Services Program Fees)  The amounts appropriated in this section for “Southern Regional Education Board Contract Programs” and “Southern Regional Education Board Dues” are to be used by the commission to pay to the Southern Regional Education Board the required contract fees for South Carolina students enrolled under the Contract for Services program of the Southern Regional Education Board, in specific degree programs in specified institutions and the Southern Regional Education Board membership dues. The funds appropriated may not be reduced to cover any budget reductions or be transferred for other purposes.

     11.2.     (CHE: Out-of-State School of the Arts)  The funds appropriated herein for Out-of-State School of the Arts must be expended for an SREB Contract Program, administered by the Commission, which will offset the difference between the out-of-state cost and in-state cost for artistically talented high school students at the North Carolina School of the Arts.

     11.3.     (CHE: African-American Loan Program)  Of the funds appropriated to the Commission on Higher Education for the African‑American Loan Program,73.7percent shall be distributed to South Carolina State University and26.3percent shall be distributed to Benedict College, and must be used for a loan program with the major focus of attracting African-American males to the teaching profession.  The Commission of Higher Education shall act as the monitoring and reporting agency for the African-American Loan Program.  Of the funds allocated according to this proviso, no more than ten percent shall be used for administrative purposes.

     11.4.     (CHE: GEAR-UP)  Funds appropriated for GEAR-UP shall be used for state grants programs to reach disadvantaged middle school students to improve their preparation for college.  Eligible South Carolina public schools and public institutions of higher education shall cooperate with the Commission on Higher Education in the provision of services under the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR-UP) grant.

     11.5.     (CHE: EPSCoR Committee Representation)  With the intent that the four-year teaching institutions receive a portion of EPSCoR funding, the State EPSCoR Committee shall have an executive committee consisting of one representative from each of the research institutions and one representative from the four-year teaching university sector.

     11.6.     (CHE: SREB Funds Exempt From Budget Cut)  In the calculation of any across the board cut mandated by theExecutive Budget Office or General Assembly, the amount which the Commission on Higher Education is appropriated for Southern Regional Education Board (SREB) Professional Scholarship Programs and Fees, Dues and Assessments shall be excluded from the Commission on Higher Education’s base budget.  Funds appropriated for SREB programs may be carried forward into the current fiscal year and expended for the same purpose by the Commission on Higher Education.

     11.7.     (CHE: Performance Improvement Pool Allocation) (A)Of the funds appropriated to the Commission on Higher Education under Section XI. Special Items: Performance Funding,eighty percent will be used to evaluate the General Assembly’s method of annually appropriating funds to the state’s colleges and universities in conjunction with the presidents of each and make recommendations to the General Assembly on the same pursuant to the guidelines established in item (B) of this section.allocated to the EPSCoR program under the Commission on Higher Education to improve South Carolina’s research capabilities andtwenty percent will be allocated to support the management education programs of the School of Business at South Carolina State University.

     (B) The evaluation prescribed in item (A) shall support the distribution of funding for public colleges and universities based on an accountability-based model that contains the following major features:

          (1)    organization of the public colleges and universities of this State and the selection of peer institutions and benchmarks, based upon the Carnegie Classification of Institutions of Higher Education;

          (2)    evaluation criteria organized into four categories:

              (a)    completion;

              (b)    affordability and access;

              (c)    educational quality;

              (d)    economic development and institutional mission;

          (3)    a five-year transition to a new funding model, which may preserve certain elements of the existing process, in a streamlined and improved form;

          (4)    a financial and regulatory incentive structure that promotes the objectives defined herein by rewarding institutions for achieving their missions.

      (C)    The Commission on Higher Education shall support the efforts of the General Assembly to establish accountability-based funding by submitting a report to the Governor and the Chairmen of the House Education and Public Works Committee, Senate Education Committee, House Ways and Means Committee, and the Senate Finance Committee no later than February 1, 2016, which:

          (1)    identifies specific indicators associated with each of the categories identified above, which would be appropriate for incorporation into a new funding model, based upon the findings of the General Assembly in Section 1. For each indicator, the commission must identify prospective public or nonprofit sources of data that could be used to support the annual evaluation process;

          (2)    identifies any aspects of the existing funding mechanism that merit retention in the new model, with suggestions as to any changes to current indicators or procedures that should be adopted;

          (3)    prioritizes the use of existing data sources and reporting mechanisms to the greatest practical extent;

          (4)    suggests any appropriate revisions to the critical success factors and performance indicators established by Section 59-103-30, in light of the evaluation criteria in (B)(2) of this section;

          (5)    proposes degrees and measures of autonomy to be granted to institutions upon attainment of specific goals or thresholds;

          (6)    inventories all state mandated reporting requirements imposed on institutions of higher education in South Carolina, including those of the Commission on Higher Education, and recommends the elimination of any conflicting, redundant, or other excessive requirements, to reduce institutional compliance burdens.

      (C)    The presidents of the senior public colleges and universities shall convene by sector at least monthly between the effective date of this resolution and the date on which the report required by (B) of this section is submitted, to participate in the development of the commission's report. They may also reconvene at their own initiative at any time prior to the expiration date of this joint resolution, to discuss and further advance efforts to establish accountability-based funding.

      (D) Colleges under the jurisdiction of the State Board for Technical and Comprehensive Education as provided for in Section 59-53-20 are exempt from the provisions of this resolution.

     11.8.     (CHE: Troop-to-Teachers)  Members of the Armed Forces either active-duty, retired, or separated who are admitted to and enrolled in the South Carolina Troop-to-Teachers Alternative Route to Certification program are entitled to pay in-state rates at participating state institutions for requisite program work.

     11.9.     (CHE: Need-Based Grants for Foster Youth)  For the current academic year, youth in the custody of the Department of Social Services and attending a higher education institution in South Carolina are eligible for additional need-based grants funding of up to $2,000 above the $2,500 maximum.  Foster youth must apply for these funds no later than May first, of the preceding year.  All other grants, both state and federal, for which these foster youth are eligible must be applied first to the cost of attendance prior to using the additional need‑based grant funding.  If the cost of attendance for a foster youth is met with other grants and scholarships, then no additional need-based grant may be used.  The Department of Social Services, in cooperation with the Commission on Higher Education, will track the numbers of recipients of this additional need-based grant to determine its effectiveness in encouraging more foster youth to pursue a secondary education.  No more than $100,000 may be expended from currently appropriated need-based grants funding for this additional assistance.

     11.10.   (CHE: Tuition Age)  Forthe current fiscal year, the age limitation for those children of certain war veterans who may be admitted to any state-supported college, university, or post high school technical education institution free of tuition is suspended for eligible children that successfully appeal the Division of Veterans Affairs on the grounds of a serious extenuating health condition.

     11.11.   (CHE: LIFE and Palmetto Fellows Enhancement Stipends)  In the current fiscal year before fall awards are made, to continue eligibility for LIFE and Palmetto Fellows Enhancement Stipends, students shall certify and the institutions shall verify that the student is meeting all requirements as stipulated by the policies established by the institution and the academic department to be enrolled as a declared major in an eligible program and is making academic progress toward completion of the student’s declared eligible major.  These determinations are subject to the verification and audit of the Commission on Higher Education.  Institutions shall return funds determined to have been awarded to ineligible students.

     11.12.   (CHE: SmartState)  The Commission on Higher Education is prohibited from expending any source of funds on the marketing of the SmartState Program.

     11.13.   (CHE: Higher Education Excellence Enhancement Program Additions) Converse College and Columbia College shall be eligible to receive funds under the Higher Education Excellence Enhancement Program.

     11.14.   (CHE: SCNG CAP Carry Forward)  Funds appropriated for the South Carolina National Guard College Assistance Program may be carried forward from the prior fiscal year into the current fiscal year and expended for the same purpose.  If a mid-year budget reduction is imposed by the General Assembly or the Executive Budget Office, the appropriations for the program are exempt.

     11.15.   (CHE: College TransitionNeed-Based Grants) Of the currently appropriated need-based grants funding, no more than $179,178 shall be used to provide need-based grants to South Carolina resident students enrolled at a public institution of higher education in an established college transition program that serves students with intellectual disabilities.  The Commission on Higher Education shall allocate the available funds to eligible institutions on the basis of student need and enrollment in the established college transition programs.  All other grants and gift aid for which these students are eligible must be applied first to the cost of attendance prior to using the need-based grant funding.  If the cost of attendance for an eligible student is met with all other grants and gift aid, the need-based grant shall not be used.  The participating institutions, in cooperation with the Commission on Higher Education, shall track the number of grant recipients and other information determined necessary to evaluate the effectiveness of these grants in assisting students with intellectual disabilities in college transition programs. 

     11.16.   (CHE: Mission, Ethics and Values Statements)  Each public institution of higher learning shall submit a report that denotes their mission, ethics, and values statements to the members of the General Assembly by January 3, 2015.

     11.17.   (CHE: Distribution of Materials on College Campuses)  Public institutions of higher education shall not impose restrictions on the distribution of the Constitution of the United States or the Constitution of the State of South Carolina by students properly enrolled in the institution or otherwise eligible to enter the institution’s property, so long as the distribution does not interrupt a class in session, a school wide assembly or other school sponsored function.  Distribution of copies of the Constitution of the United States or the Constitution of the State of South Carolina on which unrelated materials or paraphernalia are attached to, or that are inserted or included within copies of either Constitution are not subject to the requirements of this proviso.  For purposes of this proviso, an athletic event is not considered a class, school wide assembly or school sponsored function.

     11.18.   (CHE: Required Reading Material Reporting)  (A)  From the revenue appropriated or authorized by this act, the University of Charleston must utilize at least $52,000 and USC Upstate must utilize at least $17,000 to comply with the provisions contained in Section 59‑29-120, related to instruction in the provisions and principles of the United States Constitution, the Declaration of Independence, and the Federalist Papers, including the study of and devotion to American institutions and ideals.  The instruction that must given pursuant to this provision may be satisfied by providing or assigning reading materials related to the subject matter.

     (B)    A public institution of higher learning that conducts a non-elective reading program, other than as part of an instructional class, must provide alternative reading materials to a student who finds the required reading material objectionable based on a sincerely held religious, moral, or cultural belief.  A student who requests alternative materials must not be subjected to any negative consequences or disparate treatment by any officer, official, faculty member, or other employee of the institution as a result of making the request.

     (C)    A public institution of higher learning that conducts a mandatory lecture, seminar, or other similar type presentation or program, other than as part of an instructional class, must allow a student who finds the program objectionable based on a sincerely held religious, moral, or cultural belief to decline to attend or otherwise participate in the program.  A student who declines to attend or otherwise participate must not be subjected to any negative consequences or disparate treatment by any officer, official, faculty member, or other employee of the institution as a result of making the request.

     11.19.   (CHE: SmartState Draw Down)  The Commission on Higher Education, upon receipt of the dollar-for-dollar non-state match for a SmartState “South Carolina Center of Economic Excellence” required pursuant to Section 2-75-50 of the 1976 Code, and after Executive Budget Office approval, shall be authorized to draw down previously appropriated lottery funds that had been held in trust until matching funds were on hand.  The commission shall submit required documentation to the Executive Budget Office for approval of such draw downs, including proof that the required match is on hand, and the Executive Budget Office shall notify the Other Funds Oversight Committee of an authorization approved for this purpose.  These draw downs shall be exempt from the requirements of proviso 91.20 contained herein.