South Carolina General Assembly
111th Session, 1995-1996

Bill 1145


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       1145
Type of Legislation:               General Bill GB
Introducing Body:                  Senate
Introduced Date:                   19960215
Primary Sponsor:                   Setzler
All Sponsors:                      Setzler, Washington, Moore,
                                   Cork, Bryan, Drummond, Lander,
                                   Courson, Giese and Wilson 
Drafted Document Number:           gjk\22334sd.96
Companion Bill Number:             4637, 1195
Residing Body:                     Senate
Current Committee:                 Education Committee 04 SED
Subject:                           Higher Education Commission and
                                   institutions



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

Senate  19960215  Introduced, read first time,             04 SED
                  referred to Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-103-15 SO AS TO DEFINE THE MISSION OF HIGHER EDUCATION IN SOUTH CAROLINA AND OF EACH TYPE OF PUBLIC INSTITUTION OF HIGHER LEARNING; TO AMEND SECTION 59-103-20, RELATING TO STUDIES OF INSTITUTIONS OF HIGHER LEARNING, SO AS TO PROVIDE THAT THE COMMISSION SHALL BE RESPONSIBLE FOR A COORDINATED, EFFICIENT, AND RESPONSIVE HIGHER EDUCATION SYSTEM IN THIS STATE AND TO PROVIDE FOR THE RESPONSIBILITIES OF THE COMMISSION IN THIS REGARD; TO AMEND THE 1976 CODE BY ADDING SECTION 59-103-30 SO AS TO ESTABLISH CRITICAL SUCCESS FACTORS FOR ACADEMIC QUALITY IN THE INSTITUTIONS OF HIGHER LEARNING IN THIS STATE AND THE PERFORMANCE INDICATORS BY WHICH THESE SUCCESS FACTORS CAN BE MEASURED; TO AMEND SECTION 59-103-35, RELATING TO THE SUBMISSION OF THE BUDGETS OF PUBLIC INSTITUTIONS OF HIGHER LEARNING AND THE APPROVAL AND REVIEW OF THE PROGRAMS OF THESE INSTITUTIONS, SO AS TO REVISE THE MANNER IN WHICH THE PUBLIC HIGHER EDUCATION SYSTEM'S ANNUAL BUDGET REQUEST IS DETERMINED AND REVISE THE COMMISSION'S RESPONSIBILITIES WITH REGARD TO AN INSTITUTION'S PROGRAMS; TO AMEND SECTION 59-103-45, RELATING TO THE DUTIES AND FUNCTIONS OF THE COMMISSION ON HIGHER EDUCATION, SO AS TO REQUIRE THE COMMISSION TO DEVELOP STANDARDS FOR AND MEASUREMENT MECHANISMS OF THESE PERFORMANCE INDICATORS, DIRECT THE COMMISSION TO BASE THE HIGHER EDUCATION FUNDING FORMULA ON AN INSTITUTION'S ACHIEVEMENT OF THESE STANDARDS, PERMIT THE COMMISSION TO REDUCE, EXPAND, OR CONSOLIDATE ANY INSTITUTION INCLUDING THOSE WHICH DO NOT MEET THE STANDARDS OF ACHIEVEMENT, AND BEGINNING JULY 1, 1999, TO CLOSE SUCH INSTITUTIONS WHICH DO NOT MEET THESE STANDARDS, REQUIRE THE COMMISSION TO REVIEW AND APPROVE EACH INSTITUTIONAL MISSION STATEMENT, AND ENSURE ACCESS AND EQUITY OPPORTUNITIES AT EACH INSTITUTION FOR ALL CITIZENS OF THIS STATE; TO AMEND SECTION 59-103-60, RELATING TO RECOMMENDATIONS TO THE BUDGET AND CONTROL BOARD AND THE GENERAL ASSEMBLY BY THE COMMISSION, SO AS TO PROVIDE THAT AN INSTITUTION'S REQUEST FOR NEW OR EXPANDED PROGRAMS MUST BE APPROVED BY THE COMMISSION; BY ADDING SECTION 59-103-65 SO AS TO PROVIDE FOR THE MANNER IN WHICH AN INSTITUTION SHALL BE CLOSED IF AN INSTITUTION BEGINNING JULY 1, 1999, IS CLOSED BY THE COMMISSION; TO AMEND SECTION 59-103-110, RELATING TO APPROVAL OF NEW CONSTRUCTION AT PUBLIC INSTITUTIONS OF HIGHER LEARNING, SO AS TO REVISE THE MANNER IN WHICH AN INSTITUTIONS' FACILITIES AND REAL PROPERTY ACQUISITIONS AND AUTHORIZATIONS ARE APPROVED; TO AMEND CHAPTER 104 OF TITLE 59, RELATING TO INITIATIVES FOR RESEARCH AND ACADEMIC EXCELLENCE, SO AS TO REVISE SUCH PROVISIONS TO INCORPORATE APPROPRIATE REFERENCES TO THE PERFORMANCE INDICATORS FOR ACADEMIC SUCCESS ABOVE-REFERENCED AND REFERENCES TO OTHER DUTIES AND FUNCTIONS CONFERRED ABOVE ON THE COMMISSION; AND TO AMEND SECTION 59-101-350, RELATING TO THE ANNUAL REPORT TO THE GOVERNOR AND GENERAL ASSEMBLY BY THE STATE COMMISSION ON HIGHER EDUCATION, SO AS TO REVISE THE CONTENTS OF THIS REPORT AND WHAT INSTITUTIONS MUST SUBMIT TO THE COMMISSION FOR PURPOSES OF PREPARING THE REPORT.

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

SECTION 1. The 1976 Code is amend by adding:

"Section 59-103-15. (A)(1) The General Assembly has determined that the mission for higher education in South Carolina is to be a global leader in providing a coordinated, comprehensive system of excellence in education by providing instruction, research, and life-long learning opportunities which are focused on economic development and benefit the State of South Carolina.

(2) The goals to be achieved through this mission are:

(a) high academic quality;

(b) affordable and accessible education;

(c) instructional excellence;

(d) coordination and cooperation with public education;

(e) cooperation among the General Assembly, Commission on Higher Education, Council of Presidents of State Institutions, institutions of higher learning, and the business community;

(f) economic growth;

(g) clearly defined missions.

(B) The General Assembly has determined that the primary mission or focus for each type of institution of higher learning or other post-secondary school in this State is as follows:

(1) Research institutions

(a) college-level baccalaureate education, master's, professional, and doctor of philosophy degrees which lead to continued education or employment;

(b) research through the use of government, corporate, nonprofit-organization grants, or state resources, or both;

(c) public service to the State and the local community;

(2) Four-year colleges and universities

(a) college-level baccalaureate education and selected master's degrees which lead to employment or continued education, or both, except for doctoral degrees currently being offered;

(b) limited and specialized research;

(c) public service to the State and the local community;

(3) Two-year institutions - branches of the University of South Carolina

(a) college-level pre-baccalaureate education necessary to confer associates' degrees which lead to continued education at a four-year or research institution;

(b) public service to the State and the local community;

(4) State technical and comprehensive education system

(a) all post-secondary vocational, technical, and occupational diploma and associate degree programs leading directly to employment or maintenance of employment and associate degree programs for nontraditional students to gain access to other post-secondary education;

(b) up-to-date and appropriate occupational and technical training for adults;

(c) special school programs that provide training for prospective employees for prospective and existing industry in order to enhance the economic development of South Carolina;

(d) public service to the State and the local community;

(e) continue to remain technical, vocational, or occupational schools or colleges with a mission as stated in item (4) and not become community or junior colleges."

SECTION 2. Section 59-103-20 of the 1976 Code is amended to read:

"Section 59-103-20. The commission shall meet regularly and shall have the authority and responsibility for a coordinated, efficient, and responsive higher education system in this State consistent with the missions of each type of institution as stipulated in Section 59-103-15. In meeting this responsibility and in performing its duties and functions, the commission shall coordinate and collaborate at a minimum with the Council of Presidents of State Institutions, the council of board chairs of the various public institutions of higher learning and the business community. The commission also is charged with the duty of making studies of examining the state's institutions of higher learning relative to both short and long-range programs and missions which shall include:

(a) the role of state-supported higher education in serving the needs of the State and the roles and participation of the individual institutions in the statewide program;

(b) enrollment trends, student costs, business management practices, accounting methods, operating results and needs, and capital fund requirements;

(c) the administrative setup and curriculum offerings of the several institutions and of the various departments, schools, institutes, and services within each institution and the respective relationships to the services and offerings of other institutions;

(d) areas of state-level coordination and cooperation with the objective of reducing duplication, increasing effectiveness, and achieving economies and eliminating sources of friction and misunderstanding;

(e) efforts to promote a clearer understanding and greater unity and good will among all institutions of higher learning, both public and private, in the interest of serving the educational needs of the people of South Carolina on a statewide level."

SECTION 3. The 1976 Code is amended by adding:

"Section 59-103-30. (A) The General Assembly has determined that the critical success factors, in priority order, for academic quality in the several institutions of higher learning in this State are as follows:

(1) Mission Focus;

(2) Qualify of Faculty;

(3) Classroom Quality;

(4) Institutional Cooperation and Collaboration;

(5) Administrative Efficiency;

(6) Entrance Requirements;

(7) Graduates' Achievements;

(8) User-friendliness of the Institution;

(9) Research Funding.

(B) The General Assembly has determined that whether or not an institution embodies these critical success factors can be measured by the following performance indicators as reflected under the critical success factors below:

(1) Mission Focus

(a) expenditure of funds to achieve institutional mission;

(b) curricula offered to achieve mission;

(c) approval of a mission statement;

(d) adoption of a strategic plan to support the mission statement;

(e) attainment of goods of the strategic plan.

(2) Quality of Faculty

(a) academic and other credentials of professors and instructors;

(b) performance review system for faculty to include student and peer evaluations;

(c) post-tenure review for tenured faculty;

(d) compensation of faculty;

(e) availability of faculty to students outside the classroom;

(f) community and public service activities of faculty for which no extra compensation is paid.

(3) Classroom Quality

(a) class sizes and student/teacher ratios;

(b) number of credit hours taught by faculty;

(c) ratio of full-time faculty as compared to other full-time employees;

(d) accreditation of degree-granting programs;

(e) institutional emphasis on quality teacher education and reform.

(4) Institutional Cooperation and Collaboration

(a) sharing and use of technology, equipment, supplies, and source matter experts within the institution, with other institutions, and with the business community;

(b) cooperation and collaboration with private industry.

(5) Administrative Efficiency

(a) percentage of administrative costs as compared to academic costs;

(b) use of best management practices;

(c) elimination of unjustified duplication of and waste in administrative and academic programs;

(d) amount of general overhead costs.

(6) Entrance Requirements

(a) SAT and ACT scores of student body;

(b) high school class standing, grade point averages, and activities of student body;

(c) post-secondary non-academic achievements of student body;

(d) priority on enrolling in-state residents.

(7) Graduates' Achievements

(a) graduation rate;

(b) employment rate for graduates;

(c) employer feedback on graduates who were employed or not employed;

(d) scores of graduates on post-undergraduate professional, graduate or employment-related examinations and certification tests;

(e) number of graduates who continued their education;

(f) credit hours earned of graduates.

(8) User-Friendliness of Institution

(a) transferability of credits to and from the institution;

(b) continuing education programs for graduates and others;

(c) accessibility to the institution of all citizens of the State.

(9) Research Funding

(a) financial support for reform in teacher education;

(b) amount of public and private sector grants."

SECTION 4. Section 59-103-35 of the 1976 Code is amended to read:

"Section 59-103-35. All public institutions of higher learning shall submit summary budgets annual budget requests to the commission in the manner set forth in this section. The State Board for Technical and Comprehensive Education shall submit a summary budget an annual budget request to the commission representing the total request requests of all area-wide technical and comprehensive educational institutions. The budget submitted by each institution and the State Board for Technical and Comprehensive Education must include all state funds, federal grants, tuition, and fees other than funds derived wholly from athletic or other student contests, from the activities of student organizations, from approved private practice plans, and from the operation of canteens and bookstores which may be retained by the institutions and be used as determined by the respective governing boards, subject to annual audit by the State. Fees established by the respective governing boards for programs, activities, and projects not covered by appropriations or other revenues may be retained and used by each institution as previously determined by the respective governing boards, subject to annual audit by the State. The budget request for the public higher education system shall be submitted by the commission to the Governor and appropriate standing committees of the General Assembly in conjunction with the preparation of the annual general appropriations act for the applicable year.

Supplemental appropriations requests from any public institution of higher education must be submitted first to and approved by the commission. If the commission does not concur in the requests the affected institution may request a hearing on the requests before the appropriate committee of the General Assembly. The commission may appear at the hearing and present its own recommendations and findings to the same committee commission.

No new program may be undertaken by any public institution of higher education without the approval of the commission. The provisions of this chapter apply to all college parallel, transferable, and associate degree programs of technical and comprehensive education institutions. All other programs and offerings of technical and comprehensive education institutions are excluded from this chapter. The commission has the authority to recommend the termination of an existing program at any institution within the purview of this chapter. An appeal from this recommendation must be made by the governing board of an affected institution within sixty days to the Senate Education Committee and the House Education and Public Works Committee which shall hear the parties to the appeal. If both committees refuse to concur in the recommendation for termination, the program must not be terminated pursuant to the recommendation of the commission which is the subject of this appeal. A decision must be reached by the committees within one hundred twenty days from the date of the filing of the appeal. The commission's decisions as to funding reductions or increases for individual institutions, or both, are final and are not subject to administrative or judicial review."

SECTION 5. Section 59-103-45 of the 1976 Code is amended to read:

"Section 59-103-45. In addition to the powers, duties, and functions of the Commission on Higher Education as provided by law, the commission, notwithstanding any other provision of law to the contrary, shall have the following additional duties and functions with regard to the various public institutions of higher education:

(1) establish procedures for the transferability of courses at the undergraduate level between two-year and four-year institutions or schools;

(2) coordinate with the State Board of Education in the approval of secondary education courses for the purpose of determining minimum college entrance requirements;, and define minimum academic expectations for prospective post-secondary students, communicate these expectations to the State Board of Education, and work with the state board to ensure these expectations are met; and

(3) review minimum undergraduate admissions standards for in-state and out-of-state students.;

(4)(a) develop standards for determining how well an institution has met or achieved the performance indicators for quality academic success as enumerated in Section 59-103-30, and develop mechanisms for measuring the standards of achievement of particular institutions. These standards and measurement mechanisms shall be developed in consultation and cooperation with, at a minimum but not limited to, the Council of Presidents of State Institutions, the chairmen of the governing boards of the various institutions and the business community;

(b) base the higher education funding formula in part on the achievement of the standards set for these performance indicators including base-line funding for institutions meeting the standards of achievement, incentive funding for institutions exceeding the standards of achievement, and reductions in funding for institutions which do not meet the standards of achievement, provided that each institution under the formula until July 1, 1999, must receive at least its fiscal year 1996-1997 formula amount;

(c) promulgate regulations to implement the provisions of subitems (a) and (b) above and submit such regulations to the General Assembly for its review pursuant to the Administrative Procedures Act not later than the beginning of the 1997 session of the General Assembly.

(d) develop a higher education funding formula based entirely on an institution's achievement of the standards set for these performance indicators, this formula to be used beginning July 1, 1999. This new funding formula also must be contained in regulations promulgated by the commission and submitted to the General Assembly for its review in accordance with the Administrative Procedures Act;

(5) reduce, expand, or consolidate any institution of higher learning including those which do not meet the standards of achievement in regard to the performance indicators for quality academic success enumerated in Section 59-103-30, and beginning July 1, 1999, close any institution which does not meet the standards of achievement in regard to the performance indicators for quality academic success enumerated in Section 59-103-30. The process to be followed for the closure of an institution under this item (5) shall be as promulgated in regulations of the commission which shall be submitted to the General Assembly for its review in accordance with the Administrative Procedures Act;

(6) review and approve each institutional mission statement to ensure it is within the overall mission of that particular type of institution as stipulated by Section 59-103-15 and is within the overall mission of the State;

(7) ensure access and equity opportunities at each institution of higher learning for all citizens of this State regardless of race, gender, color, creed, or national origin within the parameters provided by law."

SECTION 6. Section 59-103-60 of the 1976 Code is amended to read:

"Section 59-103-60. The commission shall make such recommendations to the Governor's Office and the General Assembly as to policies, programs, curricula, facilities, administration, and financing of all state-supported institutions of higher learning as may be considered desirable. The House Ways and Means Committee, the Senate Finance Committee, and the State Budget and Control Board, and the Governor's Office may shall refer to the commission for investigation, study, and report any requests of institutions of higher learning for new or additional appropriations for operating and for other purposes and for the establishment of new or expanded programs. These requested appropriations or requests for new or expanded programs must be approved by the commission before they may be granted or implemented."

SECTION 7. The 1976 Code is amended by adding:

"Section 59-103-65. If an institution beginning July 1, 1999, is closed by the commission, the institution shall be treated as a terminated agency under Section 1-20-30 and as such terminated in the manner provided therein. However, any remaining funds shall not revert to the general fund as provided in Section 1-20-30 but instead shall be reallocated to higher education funding through use of the higher education funding formula in the manner the commission shall provide."

SECTION 8. Section 59-103-110 of the 1976 Code is amended to read:

"Section 59-103-110. No public institution of higher learning shall be authorized to construct any new permanent facility at any location other than on a currently approved campus or on property immediately contiguous thereto unless such new location and or purchase or acquire any new improved or unimproved real property unless such new facility, purchase, or acquisition has been approved by the Commission. Provided, that However, the provisions of this section shall not apply to the Trident Technical College property in Berkeley County or the new Palmer College site in Charleston County or Francis Marion College University in Florence County."

SECTION 9. Chapter 104 of Title 59 of the 1976 Code is amended to read:

"CHAPTER 104

Initiatives for Research and Academic Excellence

Article 1

Excellence for Students

Section 59-104-10. (A) In consultation and coordination with the public institutions of higher learning in this State, the State Commission on Higher Education shall ensure that ;minimal admissions standards are maintained by the institutions.

The commission, with the institutions, shall monitor the effect of compliance with admissions prerequisites that are effective in fall, 1988 at the institution.

(B) The boards of trustees of each public institution of higher learning, excluding the State Board for Technical and Comprehensive Education, shall adopt admission policies reflecting the desired mix of in-state and out-of-state enrollment appropriate for each institution. Changes in the policies affecting the mix of in-state and out-of-state enrollment must be approved by the board of trustees of the affected institution. The boards shall submit the policies to the commission by July 1, 1989, and any subsequent changes to the policies must be submitted to the commission. These admission policies and standards shall be reviewed by the commission as provided in Section 59-103-45(3). For purposes of this section enrollment must be calculated on a full-time equivalency basis with the equivalent of one full-time student being a student enrolled for thirty credit hours in an academic year. Out-of-state students means students who are not eligible for in-state rates for tuition and fees under Chapter 112 of Title 59.

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 post-secondary 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 59-104-30. Each public institution of higher learning in this State shall develop a plan for developmental education in accord with provisions, procedures, and requirements developed by the Commission on Higher Education. The commission shall conduct a study as well as evaluations and reviews of developmental education in this State. The commission shall develop appropriate methods of funding developmental education programs and courses.

Section 59-104-40. (A) The technical education system in this State shall convert from the quarter calendar to the semester calendar, if funds are appropriated for this purpose. The Commission on Higher Education shall request state appropriations for the conversion to be funded and completed over a two-year period.

(B) The State Board for Technical and Comprehensive Education, in consultation with the commission, shall limit the offering of courses designed for college transfer in those technical colleges that do not have approved college transfer programs. The offering of `college parallel' general education courses in institutions not authorized to award the associate in arts or associate in science degree is limited to those necessary to support approved nontransfer programs. The commission, after consultation with the State Board for Technical and Comprehensive Education and with public senior colleges and universities, shall establish rules and procedures by which this limitation must be regulated. The commission shall continue to work with all of the institutions to improve articulation establish procedures concerning courses acceptable for transfer as provided in Section 59-103-45(1).

Article 3

Excellence in Instruction and Educational Services

Section 59-104-210. A competitive grants program is established to improve undergraduate education in South Carolina. The State Commission on Higher Education shall administer the program, promulgate appropriate regulations, and request annual state appropriations for this purpose. All public and private nonproprietary post-secondary institutions accredited by the Commission on Colleges of the Southern Association of Colleges and Schools are eligible to participate in this program.

Section 59-104-220. The Governor's Professor of the Year Award is established as follows:

(1) Each public or private institution of higher learning in this State is eligible to nominate one faculty member for this award who has demonstrated exceptional teaching performance.

(2) The Governor's Office in conjunction with the Commission on Higher Education shall establish a committee to choose the Professor of the Year. The committee must consist of representatives of the Governor's Office, the commission, and appropriate civic, business, government, and academic organizations.

(3) The award must include a citation and a payment of five thousand dollars. The Governor's Office shall host an appropriate ceremony at which the award must be presented.

(4) The commission shall request annual state appropriations for the award.

Section 59-104-230. The Commission on Higher Education shall request state funds and establish procedures to implement a program of endowed professorships at senior public institutions of higher learning to enable the institutions to attract or retain productive faculty scholars who are making or show promise of making substantial contributions to the intellectual life of the State.

Each professorship must be supported by the income from an endowment fund created especially for that purpose. Half of the corpus of each fund must be provided by the commission through this program, and half must be provided by the institution from private funds specifically donated for this purpose.

The State Treasurer shall establish a separate fund consisting of any funds appropriated for all endowed professorships plus accrued interest received. Any amount remaining in the established fund at the end of any fiscal year must be carried forward to the next fiscal year to be used for endowed professorships. Funds in the specified amounts to support each endowment may be transferred by the commission to each eligible institution.

Section 59-104-240. (A) The Commission on Higher Education shall request state funds by 1990 to implement a program to endow salary enhancements for outstanding faculty in technical colleges and two-year campuses of the University of South Carolina. The purpose of the program is to enable the state's two-year college systems to retain and reward outstanding instructional personnel.

(B) The commission, in collaboration with the State Board for Technical and Comprehensive Education and the University of South Carolina, shall establish procedures to implement the program. Each salary enhancement must be supported by an endowment fund created especially for that purpose. Half of the corpus of each fund must be provided by the commission through this program, and half must be provided by the institution from private sources specifically donated for this purpose.

(C) The State Treasurer shall establish a separate fund consisting of any funds appropriated for all salary enhancements plus accrued interest received. Any amount remaining in the established fund at the end of any fiscal year must be carried forward to the next fiscal year to be used for salary enhancements. Funds in the specified amounts to support each salary enhancement may be transferred by the commission to each eligible institution.

Section 59-104-250. All libraries in the technical colleges in this State shall convert to a computer-based automated system that is compatible with existing state library systems and allows for appropriate networking with public colleges and universities if funds are appropriated for this purpose. The Commission on Higher Education shall request special appropriations to accomplish the conversion.

Section 59-104-260. The Commission on Higher Education shall encourage the development of joint programs that take advantage of the strengths of the public colleges and universities and discourage the development of independent competitive programs. The programs must be developed through planning and cooperation among the institutions in both academic and nonacademic areas.

Article 5

Excellence in Research For Economic Development

Section 59-104-410. A Research Investment Fund is created to establish or expand research programs in public institutions of higher learning in this State which are related to the continued economic development of South Carolina. The fund must consist of appropriations to the State Commission on Higher Education which it allocates to the institutions for research. The funds must be apportioned among the three senior universities and the four-year colleges in a manner that takes into account the previous year's expenditures of externally generated funds for research by the institutions as reported to the commission. However, the commission may make exceptions to accommodate economic development opportunities in any area of the State.

Section 59-104-420. (A) The fund must be used for research which:

(1) has a direct, positive impact on economic development, education, health, or welfare in this State;

(2) has an existing base in faculty expertise, resources, and facilities;

(3) serves to improve the quality of undergraduate and graduate education for South Carolina citizens in accordance with the institutions' stated missions as given in the commission's master plan and as developed by the institution and approved by the commission as provided in Section 59-103-45(5).

(B) The fund must not be used for capital construction projects.

Section 59-104-430. At the end of each fiscal year, comprehensive reports must be made to the Commission on Higher Education on the expenditures of funds and the results realized from the research programs. At the end of two fiscal years and each fiscal year after that, the commission shall reexamine the process of appropriating funds for research and the results obtained from the expenditures and recommend changes and alterations in the funding of research by the State if the changes are considered advisable by the commission.

Section 59-104-440. (A) With the exception of the University of South Carolina, Clemson University, and the Medical University of South Carolina, institutions seeking financial support from the fund for research projects shall submit proposals to the commission for its review and approval.

(B) The portion of the fund allocated to the three senior universities excepted in subsection (A) must be distributed in a manner that takes into account the previous year's expenditures of externally generated funds for research which each university reported to the commission.

(C) No funds allocated under the provisions of this chapter nor matching funds received pursuant to terms of this chapter may be used to increase an institution's future years' formula funding as computed by the Commission on Higher Education.

Article 7

Improving Accountability Through Planning and Assessment

Section 59-104-610. The State Commission on Higher Education shall maintain a statewide planning system to address strategic issues in public and private higher education. The system must focus upon the following goals to:

(1) identify future directions for higher education in South Carolina and recommend appropriate methods for meeting the resultant challenges;

(2) review major goals identified by the public and private institutions of higher learning in this State and ascertain their relationship to higher education in South Carolina;

(3) assure the maintenance and continued development of the quality of higher education in South Carolina;

(4) assure the maintenance and continued provision of access to and equality of educational opportunity in higher education in South Carolina;

(5) measure and monitor an institution's standard of achievement in regard to the performance indicators for quality academic success as contained in Section 59-103-30.

Section 59-104-620. (A) The Commission on Higher Education shall establish an Advisory Council on Planning to assist the commission and the institutions of higher learning in maintaining planning as a high priority.

(B) The advisory council shall report to the executive committee of the commission, which shall serve as the standing committee on planning for the commission.

(C) The advisory council shall submit to the executive committee of the commission its advice, reports, and draft plans.

Section 59-104-630. The Commission on Higher Education shall ensure that each public institution of higher learning in this State maintains its individual planning process.

Section 59-104-640. (A) The chief executive officer of the Commission on Higher Education shall develop a prospectus for planning each year.

(B) In the initial year, the Advisory Council on Planning is responsible for developing a statewide planning document for submission to the commission.

(C) After the initial year and annually thereafter, the advisory council shall prepare revisions of the planning document for consideration by the commission. The revisions must conform to, but need not be limited to, the prospectus provided by the commission.

Section 59-104-650. (A) The goals for maintaining an effective system of quality assessment by institutions of higher learning in South Carolina are to:

(1) assure that a system for measuring institutional effectiveness achievement in regard to the performance indicators for quality academic success as contained in Section 59-103-30 is in effect on every public college and university campus in this State;

(2) provide a vehicle for disseminating the results of outcome these measurements to the constituents within the State;

(3) provide data relative to the effectiveness of each institution that can be used to initiate curriculum, programmatic, or policy changes within the institution necessary to meet the standards for these performance indicators.

(B) The process by which these goals must be attained is as follows:

(1) Each institution of higher learning is responsible for maintaining a system to measure institutional effectiveness achievement in regard to the performance indicators for quality academic success in accord with provisions, procedures, and requirements developed by the Commission on Higher Education. The system for measuring such institutional effectiveness achievement must include, but is not limited to, a description of criteria by which such institutional effectiveness achievement is being assessed.

(2) As a part of South Carolina's statewide planning process, each institution shall provide the commission with an annual report on the results of its institutional effectiveness achievement program.

(3) The commission shall prepare a report that must include results of institutional effectiveness achievement, including student assessment programs. Information from private colleges and universities must be included for those institutions that voluntarily provide the information to the commission.

Section 59-104-660. (A) All state-supported institutions of higher learning shall establish their own procedures and programs to measure student achievement which must include, but are not limited to, the performance indicators contained in Section 59-103-30(B)(6) and (7). The procedures and programs must be submitted to the Commission on Higher Education as part of the plan for measuring institutional effectiveness achievement and must:

(1) derive from institutional initiatives, recognizing the diversity of South Carolina public colleges and universities, the tradition of institutional autonomy, and the capacity of faculty and administrators to identify their own problems and solve them creatively;

(2) be consistent with each institution's mission and educational objectives;

(3) involve faculty in setting the standards of achievement, selecting the measurement instruments, and analyzing the results;

(4) follow student progress through the curriculum, as appropriate;

(5) include follow-up of graduates.

(B) As part of their annual report on institutional effectiveness achievement, all state-supported colleges and universities shall describe their progress in developing assessment programs and submit information on student achievement to the commission."

SECTION 10. Section 59-101-350 of the 1976 Code is amended to read:

"Section 59-101-350. (A) The Commission on Higher Education shall submit an annual report to the Governor and to the General Assembly. The annual report must be published prior to January fifteenth of each year beginning in 1993 and presented in a readable format so as to easily compare with peer institutions in South Carolina and other Southern Regional Education Board states the state's public, post-secondary institutions. Prior to publication, the Commission on Higher Education shall distribute a draft of the report to all public,

(B) Each four-year, post-secondary institution shall submit to the commission the following information for inclusion in the report, with the South Carolina Department of Corrections' students identified and reported separately:

(1) the number and percentage of accredited programs and the number and percentage of programs eligible for accreditation;

(2) the number and percentage of undergraduate and graduate students who completed their degree program;

(3) the percent of lower division instructional courses taught by full-time faculty, part-time faculty, and graduate assistants;

(4) the percent and number of students enrolled in remedial courses and the number of students exiting remedial courses and successfully completing entry-level curriculum courses;

(5) the percent and number of graduate and upper division undergraduate students participating in sponsored research programs;

(6) placement data on graduates;

(7) the percent change in the enrollment rate of students from minority groups, the number of minority students enrolled, and the change in the total number of minority students enrolled over the past five years;

(8) the percent and number of graduate students who received undergraduate degrees at the institution, within the State, within the United States, and from other nations;

(9) the number of full-time students who have transferred from a two-year, post-secondary institution and the number of full-time students who have transferred to two-year, post-secondary institutions;

(10) student scores on professional examinations with detailed information on state and national means, passing scores, and pass rates, as available, and with information on such scores over time, and the number of students taking each exam; and

(11) appropriate information relating to each institution's role and mission;

(12) any information required by the commission in order for it to measure and determine the institution's standard of achievement in regard to the performance indicators for quality academic success enumerated in Section 59-103-30.

(C) Each two-year, post-secondary institution shall submit to the commission the following information for inclusion in the report:

(1) the number and percentage of accredited programs and the number and percentage of programs eligible for accreditation;

(2) the number and percentage of undergraduate students who completed their degree program;

(3) the percent of courses taught by full-time faculty members, part-time faculty, and graduate assistants;

(4) placement rate on graduates;

(5) the percent change in the enrollment rate of students from minority groups, the number of minority students enrolled and the change in the total number of minority students enrolled over the past five years;

(6) the number of students who have transferred into a four-year, post-secondary institution and the number of students who have transferred from four-year, post-secondary institutions; and

(7) appropriate information relating to the institution's role and mission;

(8) any information required by the commission in order for it to measure and determine the institution's standard of achievement in regard to the performance indicators for quality academic success enumerated in Section 59-103-30.

(D) The commission on Higher Education also shall develop with the cooperation of the public, post-secondary institutions, a uniform set of questions to be included in surveys to be used by each public, post-secondary institution in determining alumni satisfaction. The survey instruments must address the issues of overall satisfaction, satisfaction with major instruction, impact of general education, and current societal participation of alumni. Every two years the graduating class of three years prior must be surveyed by each institution using appropriate statistical techniques. Information from these surveys must be included every two years in the annual report as required herein.

(E) The commission on Higher Education shall make no funding recommendation decision, capital outlay recommendation decision, distribution or certification on behalf of any public, post-secondary institution that has not submitted the information required pursuant to this section.

(F) After discussions with the institutions, the Commission on Higher Education in consultation with the House Education and Public Works Committee and the Senate Education Committee shall develop the format for the higher education report as required herein.

(G) The commission on Higher Education also is required to submit an in the annual report to report on the progress of institutions of higher education in implementing assessment programs, and in their achievement of effectiveness goals, and on each institution's standard of achievement in regard to the performance indicators for academic success established in Section 59-103-30.

(H) The report required by this section must be filed in magnetic media form if the information is available in that form."

SECTION 11. This act takes effect upon approval by the Governor.

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