H*4535(Rat #0535, Act #0418 of 1998)  General Bill, By  House Ways and Means

Similar(H 4370)
 A BILL TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING
 CHAPTER 149 SO AS TO ESTABLISH LEGISLATIVE INCENTIVES FOR FUTURE EXCELLENCE
 (LIFE) SCHOLARSHIPS UNDER WHICH THE STATE OF SOUTH CAROLINA SHALL PROVIDE
 SCHOLARSHIPS TO COVER THE COST OF ATTENDANCE UP TO SPECIFIED LIMITS TO
 ELIGIBLE RESIDENT STUDENTS ATTENDING CERTAIN PUBLIC OR INDEPENDENT TWO-YEAR
 AND FOUR-YEAR INSTITUTIONS OF HIGHER LEARNING IN THIS STATE AND TECHNICAL
 COLLEGES; AND BY ADDING SECTION 12-6-3385 SO AS TO ALLOW A REFUNDABLE STATE
 INDIVIDUAL INCOME TAX CREDIT UP TO SPECIFIED LIMITS FOR A PORTION OF TUITION
 PAID AT A PUBLIC OR INDEPENDENT INSTITUTION OF HIGHER LEARNING IN THIS STATE
 AND TO DEFINE SUCH INSTITUTIONS, TO PROVIDE THE CRITERIA STUDENTS ELIGIBLE FOR
 THE CREDIT MUST MEET, TO DEFINE TUITION FOR PURPOSES OF THE CREDIT, AND TO
 PROVIDE THAT THE CREDIT APPLIES ONLY FOR STUDENTS GRADUATING FROM HIGH SCHOOL
 DURING OR AFTER MAY, 1997.-AMENDED TITLE

   01/28/98  House  Introduced, read first time, placed on calendar
                     without reference HJ-54
   02/03/98  House  Requests for debate-Rep(s). Boan, Allison,
                     Kennedy, Young-Brickell, Sandifer, Trotter,
                     Chellis, Bailey, Mason, Altman, Barrett, Hinson,
                     Cave, Pinckney & R. Smith HJ-15
   02/03/98  House  Amended HJ-21
   02/03/98  House  Read second time HJ-50
   02/03/98  House  Roll call Yeas-104  Nays-6 HJ-50
   02/04/98  House  Read third time and sent to Senate HJ-19
   02/04/98  House  Roll call Yeas-110  Nays-6 HJ-19
   02/05/98  Senate Introduced and read first time SJ-14
   02/05/98  Senate Referred to Committee on Education SJ-14
   05/14/98  Senate Committee report: Favorable with amendment
                     Education SJ-15
   05/26/98  Senate Amended SJ-50
   05/26/98  Senate Read second time SJ-50
   05/26/98  Senate Ordered to third reading with notice of
                     amendments SJ-50
   05/27/98  Senate Amended SJ-103
   05/27/98  Senate Read third time and returned to House with
                     amendments SJ-103
   06/03/98  House  Debate adjourned on amendments HJ-20
   06/03/98  House  Senate amendment amended HJ-81
   06/03/98  House  Returned to Senate with amendments HJ-87
   06/04/98  Senate Non-concurrence in House amendment SJ-45
   06/04/98  House  House insists upon amendment and conference
                     committee appointed Reps. H. Brown, Boan &
                     Young-Brickell HJ-176
   06/16/98  Senate Conference committee appointed Sens. Drummond,
                     McConnell, Land
   06/16/98  House  Free conference powers granted HJ-79
   06/16/98  House  Free conference committee appointed Boan, H.
                     Brown & Young-Brickell HJ-81
   06/16/98  House  Free conference report received and adopted HJ-81
   06/16/98  Senate Free conference powers granted
   06/16/98  Senate Free conference committee appointed Sens.
                     Drummond, Land, McConnell
   06/16/98  Senate Free conference report received and adopted
   06/16/98  Senate Ordered enrolled for ratification
   06/17/98         Ratified R 535
   06/19/98         Signed By Governor
   06/29/98         See act for exception to or explanation of
                     effective date
   06/29/98         Copies available
   06/30/98         Act No. 418

AN ACT TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 149 SO AS TO ESTABLISH LEGISLATIVE INCENTIVES FOR FUTURE EXCELLENCE (LIFE) SCHOLARSHIPS UNDER WHICH THE STATE OF SOUTH CAROLINA SHALL PROVIDE SCHOLARSHIPS TO COVER THE COST OF ATTENDANCE UP TO SPECIFIED LIMITS TO ELIGIBLE RESIDENT STUDENTS ATTENDING CERTAIN PUBLIC OR INDEPENDENT TWO-YEAR AND FOUR-YEAR INSTITUTIONS OF HIGHER LEARNING IN THIS STATE AND TECHNICAL COLLEGES; AND BY ADDING SECTION 12-6-3385 SO AS TO ALLOW A REFUNDABLE STATE INDIVIDUAL INCOME TAX CREDIT UP TO SPECIFIED LIMITS FOR A PORTION OF TUITION PAID AT A PUBLIC OR INDEPENDENT INSTITUTION OF HIGHER LEARNING IN THIS STATE AND TO DEFINE SUCH INSTITUTIONS, TO PROVIDE THE CRITERIA STUDENTS ELIGIBLE FOR THE CREDIT MUST MEET, TO DEFINE TUITION FOR PURPOSES OF THE CREDIT, AND TO PROVIDE THAT THE CREDIT APPLIES ONLY FOR STUDENTS GRADUATING FROM HIGH SCHOOL DURING OR AFTER MAY, 1997.

Be it enacted by the General Assembly of the State of South Carolina:

LIFE Scholarships

SECTION 1. Title 59 of the 1976 Code is amended by adding:

Section 59-149-10. (A) Legislative Incentives for Future Excellence (LIFE) Scholarships are established which must be offered by the State. These scholarships cover the cost of attendance as defined by the Commission on Higher Education by regulation up to a maximum of two thousand dollars a year to eligible resident students attending four-year public or independent institutions as defined in subsection (B), and to cover the cost of attendance up to a maximum of one thousand dollars a year to eligible resident students attending two-year public or independent institutions as defined in subsection (B).

(B) For purposes of this chapter, a 'public or independent institution' which a student may attend to receive a LIFE Scholarship includes the following:

(1) a South Carolina public institution defined in Section 59-103-5 and an independent institution as defined in Section 59-113-50.

(2) a public or independent bachelor's level institution chartered before 1962 whose major campus and headquarters are located within South Carolina; or an independent bachelor's level institution which has attained 501(c)(3) tax status and is accredited by the Southern Association of Colleges and Secondary Schools or the New England Association of Colleges and Schools; or a public or independent two-year institution which has attained 501(c)(3) tax status. Institutions whose sole purpose is religious or theological training, or the granting of professional degrees do not meet the definition of 'public or independent institution' for purposes of this chapter.

(C) These LIFE Scholarships must be granted and awarded as provided in this chapter.

Section 59-149-20. (A) To be eligible for a LIFE Scholarship, a student must be considered a resident of this State as provided in this chapter.

(B) A student attending such a public or independent institution of this State and who is seeking a LIFE Scholarship as a freshman meets the residency requirements of this chapter if he meets the requirements of Section 59-149-50(A) in regard to high school or home school graduation requirements and is classified as a resident of South Carolina for in-state tuition purposes under Chapter 112 of this title at the time of enrollment at the institution.

(C) Students receiving a Palmetto Fellows Scholarship are not eligible for a LIFE Scholarship under this chapter.

Section 59-149-30. Full-time enrollment as defined in Title IV of the Federal Higher Education Act is a requirement for eligibility. The student must be admitted, enrolled, and classified as a degree-seeking undergraduate student.

Section 59-149-40. These LIFE Scholarships in combination with all other grants and scholarships shall not exceed the cost of attendance at the particular institutions referenced in Section 59-149-10.

Section 59-149-50. (A) To be eligible for a LIFE Scholarship, a student must be either a member of a class graduating from a high school located in this State on or after May, 1995, a home school student who has successfully completed a high school home school program in this State in the manner required by law on or after May, 1995, or a student graduating from a preparatory high school outside this State on or after May, 1995, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent, and these students must also meet the requirements of subsection (B). In addition, beginning with the 1998-99 school year for those students who graduate from high school on or after May, 1998, the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale, and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better beginning with school year 2000-2001, and 1100 or better beginning with school year 2002-2003; provided that if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B).

(B) Students receiving a LIFE Scholarship to retain it and students currently enrolled in an eligible institution to receive such a scholarship must earn a 3.0 cumulative grade point average on a 4.0 scale each year and earn at least thirty credit hours each year for the maximum of semesters permitted at that institution by Section 59-149-60.

(C) Students who were LIFE Scholarship recipients seeking a degree at such a public or independent institution of this State during their freshman or other year who failed to earn a cumulative 3.0 at the end of the term they attempted the requisite number of hours required by subsection (B) may regain eligibility if their cumulative grade average is a 3.0 at the end of the term they have attempted at least sixty hours if they are a sophomore or ninety hours if they are a junior.

(D) By the year 2000, students graduating from high school to be eligible for a LIFE Scholarship must have passed all courses required for a STAR diploma.

Section 59-149-60. The student may receive a LIFE Scholarship for not more than ten semesters for a five-year degree program, eight semesters for a four-year degree program, or four semesters for a two-year degree program. In addition, students in order to be eligible for these scholarships must enroll in an eligible institution within two years of graduating from high school.

Section 59-149-70. The student must not be in default on a Federal Title IV or State of South Carolina educational loan, nor owe a refund on a Federal Title IV or State of South Carolina student financial aid program. If the student has repaid the defaulted loan or refund in full, he is eligible to obtain a LIFE Scholarship in the future.

Section 59-149-80. Students transferring from one eligible public or independent institution of this State to another are eligible for a LIFE Scholarship, if they continue to meet all eligibility requirements.

Section 59-149-90. (A) Students must not have been adjudicated delinquent or been convicted or pled guilty or nolo contendere to any felonies or any alcohol or drug-related offenses under the laws of this or any other state or under the laws of the United States in order to be eligible for a LIFE Scholarship.

(B) Regardless of the number of hours attempted, once the student has earned a bachelor's degree, he is ineligible for a LIFE Scholarship to seek another degree.

(C) All students who earn a LIFE Scholarship under this chapter or the Palmetto Fellows Scholarship shall be recognized at graduation from high school with a certificate issued by the Department of Education.

Section 59-149-100. Students enrolled in an eligible public or independent institution qualify for a LIFE Scholarship, even though they may not be physically present in South Carolina during all or part of the school term for which the LIFE Scholarship applies. The student's institution must approve for credit a study-abroad or out-of-state program. Summer school may be substituted for one fall or spring semester in any year in a planned program of study.

Section 59-149-110. (A) Any credit hours attempted or earned before high school graduation, hours exempted by examination, or advanced placement credit hours do not count against the semester limits as provided in Section 59-149-60.

(B) No LIFE Scholarship funds may be applied to the costs of continuing education or remedial courses.

Section 59-149-120. Any funds appropriated by the General Assembly to the Commission on Higher Education or any other agency, department, or institution to provide funding for these LIFE Scholarships may be carried forward from fiscal year to fiscal year.

Section 59-149-130. The commission shall promulgate regulations and establish procedures to administer the provisions of this chapter. In addition, the commission must ensure accountability for the scholarship by monitoring the distribution of grades at the institutions which receive these scholarship funds.

Section 59-149-140. All institutions participating in the LIFE Scholarship Program must report their enrollment and other relevant data as solicited by the Commission on Higher Education which may audit these institutions to ensure compliance with this provision.

Section 59-149-150. There is automatically appropriated from the general fund of the State whatever amount is necessary to provide to all eligible recipients the LIFE Scholarships authorized by this chapter.

Section 59-149-160. The Commission on Higher Education is authorized two additional FTEs to administer the LIFE Scholarship Program established by this chapter, the compensation for whom shall be provided from funds appropriated to the commission by the General Assembly.

Tuition tax credit

SECTION 2. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3385. (A) A student is allowed a refundable individual income tax credit equal to twenty-five percent, not to exceed eight hundred fifty dollars in the case of four-year institutions and twenty-five percent, not to exceed three hundred fifty dollars in the case of two-year institutions for tuition paid an institution of higher learning or a designated institution as provided for in this section during a taxable year. The amount of the tax credit claimed up to the limits authorized in this section for any taxable year may not exceed the amount of tuition paid during that taxable year. Tuition credits may not be claimed for more than four consecutive years after the student enrolls in an eligible institution. However, extensions may be granted due to medical necessity as defined by the Commission on Higher Education. The credit may be claimed by the student or by an individual eligible to claim the student as a dependent on his federal income tax return, whoever actually paid the tuition. The department shall prescribe a form for claiming the credit.

(B) As used in this section:

(1) 'Institution of higher learning' means a South Carolina public institution defined in Section 59-103-5 and an independent institution as defined in Section 59-113-50.

(2) A 'designated institution' means a public or independent bachelor's level institution chartered before 1962 whose major campus and headquarters are located within South Carolina; or an independent bachelor's level institution which has attained 501(c)(3) tax status and is accredited by the Southern Association of Colleges and Secondary Schools or the New England Association of Colleges and Schools; or a public or independent two-year institution which has attained 501(c)(3) tax status. Institutions whose sole purpose is religious or theological training, or the granting of professional degrees do not meet the definition of 'institution of higher learning' or 'designated institution' as defined in this section.

(3) 'Student' means an individual enrolled in an institution of higher learning:

(a) eligible for in-state tuition and fees as determined pursuant to Chapter 112 of Title 59 and applicable regulations;

(b) who at the end of the taxable year for which the credit is claimed has completed at least fifteen credit hours a semester, or its equivalent, as determined by the Commission on Higher Education, for every regular semester ending during the applicable taxable year, and who is admitted, enrolled, and classified as a degree-seeking undergraduate or enrolled in a certificate or diploma program of at least one year;

(c) who, within twelve months before enrolling:

(i) graduated from a high school in this State;

(ii) successfully completed a high school home school program in this State in the manner required by law; or

(iii) graduated from a preparatory high school outside this State while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent;

(d) not in default on a Federal Title IV or State of South Carolina educational loan, nor who owes a refund on a Federal Title IV or a State of South Carolina student financial aid program;

(e) who has not been adjudicated delinquent or been convicted or pled guilty or nolo contendere to any felonies or any alcohol or drug-related offenses under the laws of this State, any other state or comparable jurisdiction, or of the United States;

(f) who is in good standing at the institution attended;

(g) who is not a Palmetto Fellowship recipient;

(h) who is not a LIFE Scholarship recipient.

(4) 'Tuition' means the amount charged, including required fees, necessary for enrollment. Higher education tuition at an independent institution means the average tuition at the four-year public institutions of higher learning as defined in Section 59-103-15(B)(2), but not more than the actual tuition charged. Before calculating the credit, there must be deducted from tuition any amounts received toward its payment by any other scholarship grants."

Time effective

SECTION 3. This act takes effect upon approval by the Governor; provided, however, the provisions of Section 2 are effective for taxable years beginning after 1997 and applies only for persons graduating from high school during or after May, 1997.

Approved the 19th day of June, 1998.