H 4561 Session 111 (1995-1996)
H 4561 General Bill, By Townsend, Allison, H. Brown, Cato, Cooper, P.B. Harris,
Harrison, Haskins, R.J. Herdklotz, M.F. Jaskwhich, Rhoad, Sharpe, Vaughn,
Walker, Wilkins, D.A. Wright and Young-Brickell
A Bill to enact the "South Carolina Children's Education Endowment Act of
1996" including provisions to amend Title 59, Code of Laws of South Carolina,
1976, relating to education, by adding Chapter 142 so as to provide for a
South Carolina Need-Based Grants Program where qualifying undergraduate
students in a public or private institution of higher learning in this State
may receive State Need-Based Grants for tuition and fees at these institutions
and to provide for the terms, conditions, and procedures for these grants; to
amend Chapter 143, Title 59 of the 1976 Code, relating to the Educational
Assistance Endowment Fund, so as to change the name of the Fund to the
Children's Education Endowment Fund, delete the authority to accumulate monies
in the Fund, and to require that beginning with the 1996-97 fiscal year,
monies in the Fund must be distributed quarterly; to amend Title 59, relating
to education, by adding Chapter 144 so as to provide for a Public School
Facilities Assistance Program which establishes the manner in which funds
available from the Children's Education Endowment Fund shall be used to
construct and renovate public school facilities; to amend Section 59-104-20,
relating to the Palmetto Fellows Scholarship Program, so as to delete the
requirement that the institution in which the student is enrolled shall
provide one-half of the scholarship, to provide for the amount of funding
which shall be provided for students at private institutions of higher
learning in this State under the Need-Based Grants Program established by
Chapter 142 above and under the Palmetto Fellow Scholarship Program
established by Section 59-104-20 above; and to amend Act 145 of 1995, relating
to the 1995-96 General Appropriations Act, so as to revise the manner in which
funds of the Children's Education Endowment Fund are distributed for fiscal
year 1995-96.
02/07/96 House Introduced and read first time HJ-9
02/07/96 House Referred to Committee on Education and Public
Works HJ-10
A BILL
TO ENACT THE "SOUTH CAROLINA CHILDREN'S
EDUCATION ENDOWMENT ACT OF 1996" INCLUDING
PROVISIONS TO AMEND TITLE 59, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY
ADDING CHAPTER 142 SO AS TO PROVIDE FOR A SOUTH
CAROLINA NEED-BASED GRANTS PROGRAM WHERE
QUALIFYING UNDERGRADUATE STUDENTS IN A PUBLIC
OR PRIVATE INSTITUTION OF HIGHER LEARNING IN THIS
STATE MAY RECEIVE STATE NEED-BASED GRANTS FOR
TUITION AND FEES AT THESE INSTITUTIONS AND TO
PROVIDE FOR THE TERMS, CONDITIONS, AND
PROCEDURES FOR THESE GRANTS; TO AMEND CHAPTER
143, TITLE 59 OF THE 1976 CODE, RELATING TO THE
EDUCATIONAL ASSISTANCE ENDOWMENT FUND, SO AS
TO CHANGE THE NAME OF THE FUND TO THE
CHILDREN'S EDUCATION ENDOWMENT FUND, DELETE
THE AUTHORITY TO ACCUMULATE MONIES IN THE
FUND, AND TO REQUIRE THAT BEGINNING WITH THE
1996-97 FISCAL YEAR, MONIES IN THE FUND MUST BE
DISTRIBUTED QUARTERLY; TO AMEND TITLE 59,
RELATING TO EDUCATION, BY ADDING CHAPTER 144 SO
AS TO PROVIDE FOR A PUBLIC SCHOOL FACILITIES
ASSISTANCE PROGRAM WHICH ESTABLISHES THE
MANNER IN WHICH FUNDS AVAILABLE FROM THE
CHILDREN'S EDUCATION ENDOWMENT FUND SHALL BE
USED TO CONSTRUCT AND RENOVATE PUBLIC SCHOOL
FACILITIES; TO AMEND SECTION 59-104-20, RELATING TO
THE PALMETTO FELLOWS SCHOLARSHIP PROGRAM, SO
AS TO DELETE THE REQUIREMENT THAT THE
INSTITUTION IN WHICH THE STUDENT IS ENROLLED
SHALL PROVIDE ONE-HALF OF THE SCHOLARSHIP, TO
PROVIDE FOR THE AMOUNT OF FUNDING WHICH SHALL
BE PROVIDED FOR STUDENTS AT PRIVATE INSTITUTIONS
OF HIGHER LEARNING IN THIS STATE UNDER THE
NEED-BASED GRANTS PROGRAM ESTABLISHED BY
CHAPTER 142 ABOVE AND UNDER THE PALMETTO
FELLOWS SCHOLARSHIP PROGRAM ESTABLISHED BY
SECTION 59-104-20 ABOVE; AND TO AMEND ACT 145 OF
1995, RELATING TO THE 1995-96 GENERAL
APPROPRIATIONS ACT, SO AS TO REVISE THE MANNER IN
WHICH FUNDS OF THE CHILDREN'S EDUCATION
ENDOWMENT FUND ARE DISTRIBUTED FOR FISCAL YEAR
1995-96.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. This act is known and may be cited as the
"South Carolina Children's Education Endowment Act of
1996."
SECTION 2. Title 59 of the 1976 Code is amended by adding:
"CHAPTER 142
South Carolina Need-based Grants
Section 59-142-10. (A) The State shall fund a need-based
grant for a student who enrolls as an undergraduate in a public
institution of higher learning in this State who applies for the
need-based grant and who meets the following qualifications:
(1) meets domicile requirements as defined in Section
59-112-20 with the additional requirement of at least twelve
consecutive months of residency in the State of South Carolina
immediately preceding enrollment;
(2) is accepted by and enrolled or registered in a state public
institution of higher learning as an undergraduate, full-time student;
(3) is of good moral character and has never been convicted
of a felony; and
(4) is found to be in financial need according to federal Title
IV regulations.
(B) To maintain continued state need-based grants, once enrolled
a student shall:
(1) complete a minimum of twenty-four semester hours an
academic year and make satisfactory academic progress toward a
degree as determined by the institution;
(2) have no criminal record;
(3) be eligible for the need-based grants for a maximum of
four academic years of two semesters.
Section 59-142-20. Consistent with this section, the Commission
on Higher Education shall promulgate regulations necessary to
administer the need-based grants program in accordance with the
Administrative Procedures Act. The need-based grants program
shall be administered at the campus level.
Pursuant to Section 59-103-165, the commission shall incorporate
information pertaining to the need-based grant program in the
information packets concerning post-secondary education for eighth
grade students and their parents or guardians.
Section 59-142-30. Assessment of need shall be determined only
after all other sources of grant funding, including institutional, state,
and federal sources, have been exhausted.
Section 59-142-40. The provisions of this chapter apply to
eligible students beginning in the 1996-97 academic year. Funds
shall be allocated in a given year to institutions based on the
percentage of the state full-time enrollment enrolled at the
institutions in the preceding year. Funds shall be awarded to
eligible students according to the financial need of the student.
Section 59-142-50. For the purposes of this chapter, an eligible
public institution of higher learning means a `public institution of
higher learning' as defined in Section 59-103-5.
Section 59-142-60. It shall be unlawful for any person to obtain,
attempt to obtain, expend, or attempt to expend any need-based
grant provided by this chapter for any purpose other than in
payment of or reimbursement for the cost of tuition and fees to the
student to whom such grant has been awarded at the institution the
student is authorized to attend under the grant.
Section 59-142-70. Students at private institutions of higher
learning in this State whose major campus and headquarters are
located in South Carolina also are eligible for a need-based grants
in the manner provided by law."
SECTION 3. Chapter 143 of Title 59 of the 1976 Code, as
added by Section 82, Part II of Act 145 of 1995, is amended to
read:
"CHAPTER 143
Educational Assistance Children's
Education Endowment Fund
Section 59-143-10. There is hereby established the South Carolina
Educational Assistance Children's Education
Endowment Fund. The revenue received pursuant to Section
48-48-140(C) must be deposited by the State Treasurer in a fund
separate and distinct from the state general fund entitled the
`Educational Assistance Children's Education
Endowment Fund'. All interest or income earned by the fund shall
be retained in the fund and used for its stated purposes which are to
provide funding for Public School Facilities Assistance and Higher
Education Scholarship Grants. It is the intent of the General
Assembly that in creating this endowment that its funds be managed
so as to establish and fund these programs permanently. Upon
receipt of monies transferred to the Endowment Fund by the State
Treasurer, thirty percent of these monies must be allocated to
Higher Education Scholarship Grants and seventy percent must be
allocated to Public School Facility Assistance. Earnings on each
allocation shall accumulate for the benefit of that particular
program. For purposes of the allocation to Higher Education
Scholarship Grants, the The Budget and Control Board
shall distribute monies from each allocation quarterly beginning
with fiscal year 1996-97 based on actual receipts and earnings for
the prior quarter of that allocation. release a minimum of
ten million dollars annually beginning with the 1996-97 fiscal year.
Section 59-143-20. The board in its discretion may accumulate the
principal and income of each program's funds, may disburse a
portion or all of each program's annual or accumulated principal or
income, and may for purposes of Public School Facilities Assistance
cause to be issued revenue bonds as provided by law the debt
service on which may be paid from that program's funds. All
principal and income of each program's funds may be carried
forward from fiscal year to fiscal year and used for that program's
purposes."
SECTION 4. Title 59 of the 1976 Code is amended by adding:
"CHAPTER 144
Public School Facilities Assistance
Article 1
General Provisions
Section 59-144-10. Funds available from the Children's Education
Endowment Fund, as established in Chapter 143 of this title, must
be used for public school facilities assistance as provided in this
chapter.
Section 59-144-20. For the benefit of the people of the State and the
increase of their commerce, welfare, and prosperity, it is essential
that the school districts of this State be assisted in obtaining
adequate school facilities to assist youth in achieving the required
levels of learning. It is the purpose of this chapter to provide a
measure of assistance to the school districts of this State in securing
the facilities and structures which are needed to accomplish the
goals and purposes of public education, all to the public benefit and
good, to the extent and manner provided in this chapter.
Section 59-144-30. Funds made available through this chapter must
be used for permanent school instructional facilities and fixed
equipment including the costs for construction, improvement,
enlargement, or renovation of public school facilities. The district
may use its allocation for payment of debt service provided that the
debt service relates to school facilities as defined herein. As used
in this chapter, `school facilities' only includes facilities necessary
for instructional and related purposes including, but not limited to,
classrooms, libraries, media centers, laboratories, cafeterias, physical
education spaces, related interior and exterior facilities, and the
conduit, wiring, and powering of hardware installations for
classroom computers or for area network systems. `School
facilities' does not include unimproved real property, centralized
district administration facilities, or other facilities, including those
normally identified with interscholastic sports activities.
Article 2
School Facilities Assistance Allocation
Section 59-144-100. (A) Funds made available under this chapter
must be allocated annually to the school districts as follows:
(1) sixty percent of the funds allocated annually to the several school
districts for facilities' needs must be allocated on a per pupil basis
using the weighted pupil units of each district for the preceding
year;
(2) thirty percent must be allocated according to the preceding year's
Education Finance Act (EFA) formula;
(3) ten percent of the funds allocated annually to the several school
districts for facilities' needs must be distributed based on a
standardized assessment of the districts' needs for facilities using a
uniform estimate of costs as established in Section 59-144-120.
Individual district allotments must be based on the district facilities'
need relative to the state total facilities' need. For the first year's
allotment, however, the school districts' facilities' needs must be
defined as the amount of needs reported in the 1994 Department of
Education Facilities Report. For the first two years of the program,
district allotments must be adjusted for an overstatement or an
understatement of need. As the uniform assessment of needs and
the standardized cost allowances are implemented and as district
facilities' needs are verified, subsequent district allotments must be
adjusted to correct for an overstatement of needs in any previous
year;
(4) a district's annual allotment must be the sum of the three
amounts calculated as provided in this subsection. Funds from a
district's allotment shall be made available as needed once approval
is received from the State Board of Education pursuant to Chapter
23 of this title.
(B) The Department of Juvenile Justice shall be allocated funds
annually for facilities' needs on a per pupil basis using the weighted
pupil units for one hundred percent of its allocation. A district that
participates in a multi-district career center shall distribute to the
center a portion of the district's allocation under this chapter on a
per pupil basis based on the percentage of time its students spend at
the c areer center.
Section 59-144-110. The State Board of Education shall establish
and appoint a twenty-member advisory committee to assist in
developing guidelines, regulations, and standards pursuant to this
chapter. The State Superintendent of Education shall recommend
members for the advisory committee which shall include individuals
with backgrounds in the following areas:
(a) capital improvements financing;
(b) building construction;
(c) school building design;
(d) district finances;
(e) district administration;
(f) local boards of trustees;
(g) classroom instruction; and
(h) educational facilities requirements at the primary, elementary,
middl e, and high school levels.
Members of the committee shall receive mileage, subsistence, and
per diem as provided by law for members of state boards,
committees, and commissions to be paid from public school
facilities assistance funds. The members of the advisory committee
shall serve at the pleasure of the State Board of Education.
Section 59-144-120. The State Board of Education responsibilities
in regard to this chapter include:
(1) adopting policies, guidelines, and standards for a comprehensive
school facility survey with annual updates to be undertaken by
every district. The survey shall include a description of all existing
school facilities and a list of needed renovations, modifications, and
new construction projects. The Department of Education shall
provide consultation and technical assistance with regard to the
survey. The survey must be filed with the Department of Education
and may be revised by the district following established guidelines.
No school district which has not assisted with and complied with
this survey is eligible to receive allocations under this chapter. This
comprehensive survey shall serve as the basis for a uniform
statewide school facilities inventory and data base on building
conditions and maintenance management. To this end, the
Department of Education shall review district surveys to ensure
compl ete and uniform reporting;
(2) adopting policies, guidelines, and regulations for district
five-year comprehensive school facilities' improvement plans with
annual updates. Local school district facilities construction plans
shall include, but are not limited to, a list of construction projects
currently eligible for funding under this chapter, school facilities
projected as needed five years in the future, and proposed new
construction, alterations, and renovations as appropriate for
instructional programs to be listed in priority order;
(3) developing policies, guidelines, and standards for a uniform
assessment of facilities' needs and standardized cost allowances for
estimating the cost in meeting these needs in order to provide for a
systematic reporting of each district's needs to be used in
calculating the allotment of funds under Section 59-144-100.
Facilities' needs include, but are not limited to, facility need
capacity and condition, space requirements, program standards, and
pupil growth. Costs allowances shall be developed to include such
measures as costs per square foot, costs per pupil, or costs per
teaching unit with such costs adjusted annually to reflect changes in
the cost of labor and materials. These standards and cost
allowances are to be used only for providing a uniform reporting of
districts' needs for formula allotment purposes and are not intended
to limit district options in determining the most appropriate manner
in which to meet individual district needs;
(4) developing policies and guidelines for school districts to notify
the State Board of Education of the anticipated times of
expenditures from district allotments;
(5) adopting policies, standards, and regulations to ensure the
accuracy of district reporting required under this chapter and the use
of funds disbursed under this chapter.
Section 59-144-130. Every three years by December first beginning
with the year 1998, the State Board of Education shall report to the
General Assembly the projected five-year school facilities'
improvement requirements reported by the school districts, the
needs identified since the last report, and those previously identified
needs addressed since the last report.
Section 59-144-140. The Department of Education's responsibilities
shall include:
(1) providing staffing assistance to the State Board of Education and
the advisory committee in the development of policies, guidelines,
standards, and regulations implementing this chapter;
(2) providing technical assistance to school districts in completing
the comprehensive school facilities' survey and annual updates and
assisting districts in developing their five-year comprehensive
school facilities' improvement plans;
(3) ensuring compliance with state standards and requirements,
inspecting construction projects for education facilities, and
approving completed construction pursuant to Chapter 23 of this
title for projects financed in whole or in part with funds allocated
under this chapter. To assist with the inspection of construction
projects, the State Board of Education may designate selected local
units of administration which have staff qualified to conduct the
inspections to act on behalf of the Department of Education; and
(4) reviewing each district's school facility surveys, funding
applications, and financial reports to ensure compliance with the
inten t of this chapter.
Section 59-144-150. To qualify for funds under this chapter, each
school district shall meet the conditions and qualifications provided
for in this chapter. Funds must be withheld from districts when
inappropriate reporting of facilities' needs is found or when
inappropriate use of funds is documented.
Section 59-144-160. To accomplish the statewide uniform facilities'
inventory and data base and to assist districts with the
comprehensive facilities' improvement plans, two hundred thousand
dollars shall be released to the Department of Education from
public school facilities assistance funds for each of the first three
years after the effective date of this chapter including the year this
chapter is enacted. The department may carry forward these funds
for use for the same purpose in subsequent years.
Section 59-144-170. By December 1, 1998, the State Board of
Education shall recommend to the General Assembly changes to be
made to this chapter regarding program objectives, appropriate
funding levels, and funding allotment formulas."
SECTION 5. Section 59-104-20 of the 1976 Code, as added by Act
629 of 1988, is amended to read:
"Section 59-104-20. The Palmetto Fellows Scholarship
Program is established to foster scholarship among the state's
post-secondary students and retain outstanding South
Carolina high school graduates in the State through awards based on
scholarship and achievement. Measures must be taken to ensure
equitable minority participation in this program. Recipients of these
scholarships are designated Palmetto Fellows. Each Palmetto Fellow
shall receive a scholarship in an amount designated by the
Commission on Higher Education, half to be provided by the
postsecondary institution at which he is enrolled. The
commission shall promulgate regulations and establish procedures to
administer the program and request annual state appropriations for
the program."
SECTION 6. Notwithstanding any other provision of law, the amount
of funding under the South Carolina Need-based Grants program
established pursuant to Chapter 142 of Title 59 of the 1976 Code,
and under the Palmetto Fellows scholarship program established
pursuant to Section 59-104-20 of the 1976 Code, allocated to
students attending private institutions of higher learning in this State
whose major campus and headquarters are located in South Carolina
shall be equivalent to the percentage of the private institutions'
share of the total undergraduate full-time equivalent (FTE)
enrollment of all public and private higher education institutions in
South Carolina, based on the previous year's data.
SECTION 7. Paragraph 72.71 of Part IB of Act 145 of 1995 is
amended to read:
"72.71. (GP Educational Assistance Children's
Education Endowment Fund)
Notwithstanding provisions contained within this act, for this fiscal
year only, the revenue credited to the Educational Assistance
Children's Education Endowment Fund pursuant to Section
48-47-175(C) shall be used as follows: $7,000,000 for University
of Charleston -- Acquisition of Adjoining Property, $4,000,000 for
Greenville Higher Education Consortium, $5,400,000 for Archives
and History -- History Center, $600,000 for the School for the Deaf
and Blind -- Maintenance and Equipment, and $185,000 for Wil
Lou Gray Opportunity School -- Building Maintenance with the
remaining funds to be distributed on a seventy percent-thirty percent
basis to Public School Facilities Assistance and Higher Educational
Scholarship Grants, respectively; however no less than
$39,400,000 shall go to Scholarship Grants."
SECTION 8. This act takes effect upon approval by the Governor.
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