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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, 2017 2018, 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, 2017 2018. 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, 2017 2018.
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: FY 2017-18 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.
For Fiscal Year 2017-18, certified net lottery proceeds and investment earnings for the current fiscal year, including the Fiscal Year 2016-17 certified surplus, are appropriated as follows:
(1) Commission on Higher Education--LIFE Scholarships as provided in Chapter 149, Title 59 $ 221,843,614;
(2) Commission on Higher Education--HOPE Scholarships as provided in Section 59-150-370 $ 14,458,578;
(3) Commission on Higher Education--Palmetto Fellows Scholarships as provided in
Section 59-104-20 $ 51,927,301;
(4) Commission on Higher Education and State Board for Technical and Comprehensive
Education--Tuition Assistance $ 47,342,211;
(5) Commission on Higher Education--Need-Based Grants $ 17,537,078;
(6) Higher Education Tuition Grants Commission--Tuition Grants $ 8,830,008;
(7) Department of Education--School Bus Lease/Purchase $ 609,484;
(8) State Board for Technical and Comprehensive Education--Workforce Scholarship Grants $ 8,000,000;
(9) Higher Education Tuition Grants Commission--SREB Program and Assessments $ 349,606;
(10) State Board for Technical and Comprehensive Education--Allied Health $ 3,000,000;
(11) Commission on Higher Education--Technology-Public Four-Year
Institutions, Two-Year Institutions, and State Technical Colleges $ 6,500,000;
(12) South Carolina State University $ 2,500,000;
(13) Department of Education--Reading Partners $ 400,000;
(14) Commission on Higher Education--Higher Education Excellence Enhancement Program $ 567,473;
(15) State Library--Aid to County Libraries $ 1; and
(16) State Board for Technical and Comprehensive Education--Military Education, Training
and Support Program................................................................................................................ $ 1.
For Fiscal Year 2017-18, net lottery proceeds and investment earnings above the Fiscal Year 2016-17 certified surplus are appropriated pro-rata as follows:
(1) Department of Education--School Bus Lease/Purchase $ 17,500,000;
(2) State Library--Aid to County Libraries $ 800,000;
(3) Commission on Higher Education--Carolina Career Clusters Grant (1:1 Match) $ 300,000; and
(4) State Board for Technical and Comprehensive Education--SPICE Program $ 250,000.
For Fiscal Year 2017-18, funds certified from unclaimed prizes are appropriated as follows:
(1) Commission on Higher Education--Higher Education Excellence Enhancement Program $ 5,505,000;
(2) Department of Alcohol and Other Drug Abuse Services--Gambling Addiction Services $ 50,000;
(3) Commission on Higher Education--National Guard Tuition Repayment Program as
provided in .............................................................................................................................. Section 59-111-75 $ 4,634,968;
(4) School for the Deaf and the Blind--Technology $ 200,000;
(5) School for the Deaf and the Blind--Bus/Lease $ 800,000;
(6) Department of Education--School Bus Lease/Purchase $ 2,810,032;..................................................................................................................... and
(7) State Board for Technical and Comprehensive Education--Critical Training Equipment $ 3,000,000.
If the lottery revenue received from certified unclaimed prizes for Fiscal Year 2017-18 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) Department of Education--School Bus Lease/Purchase $ 3,000,000;..................................................................................................................... and
(2) Department of Education--School Bus Lease/Purchase remaining balance.
Fiscal Year 2017-18 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 2017-18 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 2017-18 are fully funded.
If the lottery revenue received for Fiscal Year 2017-18 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.
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 State Board for Technical and Comprehensive Education for Workforce Pathways 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, except that funds shall not be used for continuing education courses that do not lead to a degree or professional certificate. 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 fifteenth of 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.
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....................................................... $ 265,119;
(2) University of Charleston................................... $ 554,488;
(3) Coastal Carolina University.............................. $ 494,175;
(4) Francis Marion University................................ $ 252,940;
(5) Lander University............................................. $ 259,785;
(6) South Carolina State University........................ $ 238,205;
(7) USC - Aiken Campus....................................... $ 232,679;
(8) USC - Upstate................................................... $ 315,898;
(9) USC - Beaufort Campus................................... $ 172,940;
(10) USC - Lancaster Campus.................................. $ 129,652;
(11) USC - Salkehatchie Campus............................. $ 129,652;
(12) USC - Sumter Campus...................................... $ 129,652;
(13) USC - Union Campus....................................... $ 129,652;
(14) Winthrop University......................................... $ 334,496; and
(15) State Technical Colleges and State Board for
Technical and Comprehensive Education..... $ 2,860,667.
Unless otherwise provided herein, 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 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................................... $ 153,422;
(2) Central Carolina Technical College................... $ 160,719;
(3) Denmark Technical College.............................. $ 81,152;
(4) Florence-Darlington Technical College............. $ 167,588;
(5) Greenville Technical College............................ $ 262,438;
(6) Horry-Georgetown Technical College............... $ 207,701;
(7) Midlands Technical College.............................. $ 215,503;
(8) Northeastern Technical College........................ $ 125,460;
(9) Orangeburg-Calhoun Technical College........... $ 324,216;
(10) Piedmont Technical College............................. $ 194,843;
(11) Spartanburg Community College...................... $ 168,289;
(12) Technical College of the Lowcountry............... $ 137,227;
(13) Tri-County Technical College........................... $ 187,241;
(14) Trident Technical College................................. $ 328,138;
(15) Williamsburg Technical College....................... $ 117,874; and
(16) York Technical College.................................... $ 168,189.
Funds appropriated within this provision to the State Board for Technical and Comprehensive Education for Technology and/or Critical Training Equipment may be utilized in whole or in part for repair or replacement of Allied Health related equipment at the discretion of each individual technical college.
Of the funds appropriated to the Commission on Higher Education for Research University STEM Equipment, the commission shall disburse the funds to Clemson University, the University of South Carolina-Columbia, and the Medical University of South Carolina proportionally based on each institutions proportion of general fund appropriation in Part 1A of Act 284 of 2016 as compared to the general fund appropriation in that Act for the three institutions in total.
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 equally disburse funds to eligible independent HBCUs domiciled in this State that were each recipients of a single competitive grant from a private sector endowment of not less than $1,000,000 in the immediately preceding fiscal year, 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.
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 fifteenth 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, 2018 on the impact of the program.
Of the funds appropriated to the Commission on Higher Education for Memorial Professorship, the Commission shall disburse the funds to the States only non-profit, four-year comprehensive institution of higher learning that was first established as a college in 1908, provided that the college is SACS accredited and has at least forty percent or more minority enrollment. The college must utilize the funds in support for a memorial professorship(s) for the purpose of helping the college recruit and retain faculty members whose research, teaching and service uniquely contribute to the mission of the college.
Of the funds appropriated to the State Board for Technical and Comprehensive Education for 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.
3.4. (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.
3.5. (LEA: Debit Card Transactions) For the current fiscal year Section 59-150-70(D)(2) of the 1976 code shall be suspended. The Board of Commissioners of the South Carolina Lottery Commission may promulgate regulations which must specify the sale price of lottery game tickets or shares and the manner of sale. Individuals shall be allowed to use cash and debit cards to purchase lottery tickets. The use of checks, credit cards, charge cards, or any other form of deferred payment to purchase lottery tickets shall be prohibited.
3.6. (LEA: FY 2018-19 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.
For Fiscal Year 2018-19, certified net lottery proceeds and investment earnings for the current fiscal year, the Fiscal Year 2017-18 certified surplus, and net lottery proceeds and investment earnings above the Fiscal Year 2017-18 certified surplus are appropriated as follows:
(1) Commission on Higher Education--LIFE Scholarships as provided in Chapter 149, Title 59 $ 230,056,162;
(2) Commission on Higher Education--HOPE Scholarships as provided in Section 59-150-370 $ 15,563,241;
(3) Commission on Higher Education--Palmetto Fellows Scholarships as provided in
Section 59-104-20 $ 55,362,716;
(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 $ 8,830,008;
(7) Commission on Higher Education--National Guard Tuition Repayment Program
as provided in Section 59-111-75 $ 495,872;
(8) South Carolina State University $ 2,500,000;
(9) State Board for Technical and Comprehensive Education--ReadySC Direct Training $ 9,432,046;
(10) State Board for Technical and Comprehensive Education--High Demand Job Skill
Training Equipment $ 9,850,000;............................................................................................................................ and
(11) Lottery Reserve Trust Fund $ 41,272,877.
For Fiscal Year 2018-19, funds certified from unclaimed prizes are appropriated as follows:
(1) Commission on Higher Education--Higher Education Excellence Enhancement Program $ 6,072,473;
(2) Department of Alcohol and Other Drug Abuse Services--Gambling Addiction Services $ 50,000;
(3) State Board for Technical and Comprehensive Education--Workforce Scholarship Grants $ 11,000,000;............................................................................................................................. and
(4) Commission on Higher Education--National Guard Tuition Repayment Program as provided
in Section 59-111-75 $ 1,877,527.
If the lottery revenue received from certified unclaimed prizes for Fiscal Year 2017-18 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 2018-19 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 2018-19 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 2018-19 are fully funded.
If the lottery revenue received for Fiscal Year 2018-19 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.
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 State Board for Technical and Comprehensive Education for Workforce Scholarships/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, except that funds shall not be used for continuing education courses that do not lead to a degree or professional certificate. 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 fifteenth of 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.
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