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, 2019, 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, 2019. 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, 2019.

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. (LEA: Student Unique Identifiers) For the current fiscal year, in order to provide longitudinal data, institutions of higher education and technical colleges accepting lottery funds must retain the student unique identifier or SUNS number assigned to students who attended public high schools in South Carolina. This shall not prohibit institutions of higher education or technical colleges from using additional student identifiers.

3.4. DELETED

3.5. (LEA: FY 2019-20 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. For cash flow purposes, the Executive Budget Office may facilitate limited transfers from the general deposits of the state for the exclusive purpose of ensuring the timely distribution of scholarships and tuition assistance payments as provided below. Any use of this transfer allowance must include full reimbursement from the Education Lottery Account to the general deposit accounts of the state prior to the close of the fiscal year.

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.

For Fiscal Year 2019-20, certified net lottery proceeds and investment earnings for the current fiscal year, Fiscal Year 2018-19 certified surplus, and Fiscal Year 2017-18 surplus are appropriated as follows:

(1) Commission on Higher Education--

LIFE Scholarships as provided in

Chapter 149, Title 59 $ 240,102,429;

(2) Commission on Higher Education--

HOPE Scholarships as provided in

Section 59-150-370 $ 14,557,008;

(3) Commission on Higher Education--

Palmetto Fellows Scholarships

as provided in Section 59-104-20 $ 61,809,959;

(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 $ 20,000,000;

(6) Higher Education Tuition Grants

Commission--Tuition Grants $ 10,000,000;

(7) Commission on Higher Education--

National Guard Tuition

Repayment Program as provided

in Section 59-111-75 $ 2,631,129;

(8) State Board for Technical and

Comprehensive Education--

South Carolina Workforce Industry

Needs Scholarship $ 17,000,000;

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

(10) State Board for Technical and

Comprehensive Education--

ReadySC Direct Training $ 10,000,000;

(11) State Board for Technical

and Comprehensive Education--

High Demand Job Skill Training

Equipment $ 12,500,000;

(12) Commission on Higher Education--

Technology-Public Four-Year

Institutions, Two-Year Institutions,

and State Technical Colleges as

provided in Section 59-150-356 $ 8,000,000;

(13) Commission on Higher Education--

SREB Program and Assessments $ 236,195;

(14) Department of Education--

Instructional Materials $ 20,000,000;

(15) Department of Alcohol and Other

Drug Abuse Services--Gambling

Addiction Services $ 50,000;

(16) Department of Education--School Bus

Lease/Purchase $ 19,363,280;

and

(17) Department of Education--

Reading Partners $ 250,000.

For Fiscal Year 2019-20, net lottery proceeds and investment earnings above the Fiscal Year 2018-19 certified surplus are appropriated pro-rata as follows:

(1) Commission on Higher Education--

Higher Education Excellence

Enhancement Program $ 2,927,527;

(2) State Board for Technical and

Comprehensive Education--

SPICE Program $ 250,000;

(3) State Board for Technical and

Comprehensive Education--

Midlands Technical College-Quick

Jobs/Dual Credit Funding $ 2,500,000;

(4) State Board for Technical and

Comprehensive Education--

Orangeburg-Calhoun Technical

College-Truck Driving Certificate $ 350,000;

(5) Commission on Higher Education--

Career Clusters $ 450,000;

(6) Commission on Higher Education--

Memorial Professorships $ 1;

(7) South Carolina State University--

School of Business $ 200,000;

(8) Commission on Higher Education--

University Center of Greenville-

Debt Service $ 1;

(9) USC - Union Campus-Nursing Program

Technology Upgrades $ 37,000;

(10) State Board for Technical and

Comprehensive Education--

Spartanburg Community College-

Cherokee Campus $ 200,000;

(11) Department of Education -

Innovation Grants $ 2,800,000;

(12) Education Oversight Committee -

After School Pilot Program

and Clemson Forest Initiative $ 1,500,000; and

(13) Department of Education--Instructional

Materials $ All Remaining.

For Fiscal Year 2019-20, funds certified from unclaimed prizes are appropriated as follows:

(1) State Board for Technical and

Comprehensive Education--

Workforce Scholarships and Grants $ 11,000,000;

(2) Commission on Higher Education--

Higher Education

Excellence Enhancement Program $ 6,072,473;

(3) Department of Alcohol and Other

Drug Abuse Services--

Gambling Addiction Services $ 50,000;

(4) Commission on Higher Education--

SREB Program

and Assessments $ 377,526;

(5) Commission on Higher Education--

PASCAL $ 1,500,000;

(6) Commission on Higher Education--

Need-Based Grants $ 1; and

(7) Department of Education--School Bus

Lease/Purchase $ All Remaining.

If the lottery revenue received from certified unclaimed prizes for Fiscal Year 2019-20 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.

Fiscal Year 2019-20 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 2019-20 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 2019-20 are fully funded.

If the lottery revenue received for Fiscal Year 2019-20 certified net lottery proceeds and investment earnings for the current fiscal year, Fiscal Year 2018-19 certified surplus, and Fiscal Year 2017-18 surplus are 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.

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.

The funds appropriated to the State Board for Technical and Comprehensive Education (SBTCE) 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 SBTCE in consultation with the Department of Education. Funds shall not be used for continuing education courses that do not lead to a degree, professional certificate, or industry-recognized credential (IRC).

(A) Prior to disbursement of funds and no later than July 30, SBTCE must provide the colleges with a Board approved list, compiled based on regional and statewide industry needs of the programs and credentials for which the colleges are allowed to award grants for the current fiscal year.

(B) Grants shall be awarded from the fund in an amount not exceeding five thousand dollars or the total cost of attendance, whichever is less, for students to attend the program of their choice, including a professional certification program, at a South Carolina public technical college. Priority for grant awards shall be given to students seeking a degree, professional certificate, or industry-recognized credential (IRC) in an industry sector with critical workforce needs as identified and recommended by the SBTCE and ratified by the Coordinating Council for Workforce Development.

(C) By April fifteenth, the SBTCE shall provide a report to the Chairman of House Ways and Means Committee and the Chairman of the Senate Finance Committee detailing use of funds received in the prior fiscal year. The report must include at minimum for each technical college: a list of programs that received funding, amount spent per program, number of students that received grants, grant amount per student, names of credentials completed by students receiving grants, amount of each type of credential completed, and job placement rates for students who completed programs and/or credentials.

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,"(Technology) the commission shall allocate the realized funds on a proportional basis as follows:

(1) The Citadel $ 267,228;

(2) University of Charleston $ 607,631;

(3) Coastal Carolina University $ 591,366;

(4) Francis Marion University $ 260,984;

(5) Lander University $ 224,174;

(6) South Carolina State University $ 224,476;

(7) USC - Aiken Campus $ 243,662;

(8) USC - Upstate $ 330,928;

(9) USC - Beaufort Campus $ 183,437;

(10) USC - Lancaster Campus $ 145,010;

(11) USC - Salkehatchie Campus $ 145,010;

(12) USC - Sumter Campus $ 145,010;

(13) USC - Union Campus $ 145,010;

(14) Winthrop University $ 362,400; and

(15) State Technical Colleges and

State Board for Technical

and Comprehensive Education $ 4,123,674.

Each institution shall use the amount appropriated only for technology repair and related technology maintenance and/or upgrades that are necessary to support an institutions 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 to the State Board for Technical and Comprehensive Education for the SPICE Program, the board shall transfer the funds to Greenville Technical College, upon which the college, from the entirety of the funds allocated to it pursuant to this Act, must dedicate no less than $250,000 annually towards the creation and/or maintenance of a "Self-Paced In-Classroom Education" (SPICE) program designed to prepare eligible citizens for re-entry into the workforce through gainful employment in skilled and other professions.

Of the funds appropriated to the Commission on Higher Education for Carolina Careers Cluster Grant (1:1 match), upon application by an eligible institution as defined in this paragraph, the commission shall disburse $350,000 to Voorhees College and $50,000 each to Benedict College and Claflin University provided that each were recipients of a single competitive grant from a private sector endowment of not less than $1,000,000, the proceeds of which are intended to better prepare students for employment in high paying job clusters across the State. Funds must be spent on students and/or student support services directly related to the private sector grantors initiative and for no other purpose. Prior to disbursement, the commission shall verify that an eligible institution will provide no less than a 1 to 1 match of the funds to be disbursed.

Of the funds appropriated to the State Board for Technical and Comprehensive Education for the South Carolina Workforce Industry Needs Scholarship, the board shall administer the South Carolina Workforce Industry Needs Scholarship as outlined below:

(A) (1) In the current fiscal year, a student attending a two year public technical college and majoring in a critical workforce area program, as defined and recommended by the State Board for Technical and Comprehensive Education (SBTCE) and ratified by the South Carolina Coordinating Council for Workforce Development, and who is receiving a Lottery Tuition Assistance Program Scholarship (LTAP) for the current fiscal year, shall receive an additional South Carolina Workforce Industry Needs Scholarship (SC WINS). A student who is attending a two-year public technical college, who meets the income eligibility guidelines for free and reduced-priced meals as established by the United States Department of Agriculture (USDA) and who is receiving a LTAP scholarship for the current fiscal year, shall receive a SC WINS scholarship regardless of the students major. The SC WINS scholarship is equal to the cost of tuition and mandatory fees after applying all other scholarships or grants, not to exceed two thousand five hundred dollars.

(2) If the student is a freshman, the student must be enrolled in at least six credit hours of instruction each semester, including at least three credit hours of instruction in one of the critical workforce areas defined by the SBTCE. A student who meets the income guidelines for free and reduced-priced meals as established by the USDA, must be enrolled in at least six credit hours of instruction each semester for the purpose of meeting the required minimum level of instruction in the students major courses. To receive the additional SC WINS scholarship, the student must receive the underlying LTAP scholarship for that fiscal year and must be making acceptable progress towards receiving a degree in one of the majors pursuant to this proviso. For purposes of meeting this required minimum level of instruction in the freshmans major courses, dual enrollment courses taken in high school in these critical workforce area programs count toward the fulfillment of the minimum requirement.

(B) The SBTCE shall adopt rules to define what constitutes a critical workforce program area. Nothing herein prevents a student from changing majors within the acceptable disciplines. Additionally, the SBTCE shall communicate with high school guidance counselors regarding the list of qualifying majors. Critical workforce program additions or deletions must be ratified by the South Carolina Coordinating Council for Workforce Development.

(C) If the additional SC WINS scholarship is lost, it may be regained in the same manner the underlying LTAP scholarship is regained.

(D) In order for a student to be eligible after attempting twenty-four academic credit hours, the student must have earned a grade point average of 2.0 or better on a 4.0 grading scale.

(E) A student may not be eligible to receive the SC WINS scholarship for more than one certificate, diploma, or degree unless the additional certificate, diploma, or degree constitutes progress in the same field of study.

(F) A dual-enrollment student in high school who is majoring in one of the critical workforce areas at a technical college qualifies for the SC WINS scholarship. A dual enrollment student in high school who receives a LTAP scholarship at a technical college and qualifies for free and reduced-priced meals, also qualifies for the SC WINS scholarship regardless of the students major.

(G) Additionally, an up to three-hundred-dollar book allowance is applied to a SC WINS recipients account, who is majoring in one of the critical workforce areas, for expenses towards the cost of textbooks.

(H) If a critical workforce area program is placed on suspension during the SBTCEs program evaluation process, that program no longer qualifies for SC WINS funds at that specific college. Students must be advised on how to complete their program by transferring to another technical college or serving as a transient student at another technical college to complete specified courses.

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 of the current fiscal year. 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, 2020 on the impact of the program.