South Carolina General Assembly
111th Session, 1995-1996

Bill 1195


                    Current Status

Bill Number:                    1195
Ratification Number:            368
Act Number:                     359
Type of Legislation:            General Bill GB
Introducing Body:               Senate
Introduced Date:                19960229
Primary Sponsor:                Education Committee SED 04
All Sponsors:                   Education Committee
Drafted Document Number:        gjk\22426sd.96
Companion Bill Number:          1145
Date Bill Passed both Bodies:   11960509
Date of Last Amendment:         19960509
Governor's Action:              S
Date of Governor's Action:      19960520
Subject:                        Higher Education Commission and
                                institutions

History



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

------  19960613  Act No. A359
------  19960520  Signed by Governor
------  19960514  Ratified R368
Senate  11960509  Ordered enrolled for ratification
Senate  19960509  Conference Committee Report adopted      88 SCC
House   19960509  Conference Committee Report adopted      98 HCC
Senate  19960507  Conference powers granted,               88 SCC  Setzler
                  appointed Senators to Committee                  Washington
                  of Conference                                    Cork
House   19960507  Conference powers granted,               98 HCC  Wright
                  appointed Reps. to Committee of                  Allison
                  Conference                                       Stille
House   19960507  Insists upon amendment
Senate  19960502  Non-concurrence in House amendment
House   19960502  Read third time, returned to Senate
                  with amendment
House   19960501  Amended, read second time
House   19960425  Committee report: Favorable with         21 HEPW
                  amendment
House   19960416  Introduced, read first time,             21 HEPW
                  referred to Committee
Senate  19960410  Amended, read third time, 
                  sent to House
Senate  19960409  Amended, debate interrupted
                  by adjournment
Senate  19960404  Debate interrupted by adjournment
Senate  19960403  Debate interrupted by adjournment
Senate  19960402  Debate interrupted by adjournment
Senate  19960327  Debate interrupted by adjournment
Senate  19960326  Made Special Order
Senate  19960314  Read second time, ordered to
                  third reading with notice of
                  general amendments
Senate  19960314  Amended
Senate  19960229  Introduced, read first time,
                  placed on Calendar without reference


View additional legislative information at the LPITS web site.


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

(A359, R368, S1195)

AN ACT TO AMEND SECTION 59-103-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE COMMISSION ON HIGHER EDUCATION, SO AS TO REVISE THE MANNER IN WHICH CERTAIN MEMBERS THEREOF SHALL BE APPOINTED; TO AMEND THE 1976 CODE 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; BY ADDING SECTION 59-103-30 SO AS TO ESTABLISH CRITICAL SUCCESS FACTORS IN PRIORITY ORDER 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, AS AMENDED, 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 AND EACH INSTITUTION'S ANNUAL BUDGET REQUEST IS DETERMINED, TO PROVIDE CERTAIN EXCEPTIONS FOR CAPITAL IMPROVEMENT PROJECTS FUNDED BEFORE JULY 30, 1996, AND TO 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, TO PROVIDE THAT THE PROCESS TO BE FOLLOWED FOR THE CLOSURE, REDUCTION, EXPANSION, OR CONSOLIDATION OF AN INSTITUTION SHALL BE AS PROMULGATED IN REGULATIONS OF THE COMMISSION WHICH SHALL BE SUBMITTED TO AND APPROVED BY THE GENERAL ASSEMBLY, TO REQUIRE THE COMMISSION TO REVIEW AND APPROVE EACH INSTITUTIONAL MISSION STATEMENT, TO PROVIDE THAT THE COMMISSION SHALL DEFINE MINIMUM ACADEMIC EXPECTATIONS FOR PROSPECTIVE POST-SECONDARY STUDENTS AND COMMUNICATE THESE EXPECTATIONS TO THE STATE BOARD OF EDUCATION, AND TO PROVIDE THAT THE COMMISSION SHALL 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 MAKE TECHNICAL CORRECTIONS; 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 A PUBLIC INSTITUTION'S CONSTRUCTION OR PURCHASE OF CERTAIN NEW FACILITIES OR REAL PROPERTY IS APPROVED, AND TO DELETE CERTAIN LANGUAGE RELATING TO THE APPLICABILITY OF THE SECTION; 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 DELETE THE REQUIREMENT THAT A POST-SECONDARY INSTITUTION PROVIDE HALF THE COST OF A PALMETTO FELLOWS SCHOLARSHIP; 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; AND TO AMEND SECTION 95, PART II OF ACT 145 OF 1995, RELATING TO SINGLE-GENDER PROGRAMS OF HIGHER LEARNING, SO AS TO PROVIDE THAT THE COMMISSION SHALL NOT BE AUTHORIZED TO REQUIRE ANY CHANGE TO A COURT-APPROVED SINGLE-GENDER EDUCATION PROGRAM WHICH WOULD HINDER THE PROGRAM'S ABILITY TO PRODUCE A SUBSTANTIVELY COMPARABLE OUTCOME, AND TO REVISE THE EFFECTIVE DATE OF THIS SECTION.

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

Manner of appointment revised

SECTION 1. Section 59-103-10 of the 1976 Code, as last amended by Act 137 of 1995, is further amended to read:

"Section 59-103-10. There is created the State Commission on Higher Education. The commission shall consist of fourteen members appointed by the Governor. The membership must consist of one at-large member to serve as chairman, one representative from each of the six congressional districts, three members appointed from the State at-large, three representatives of the public colleges and universities, and one representative of the independent colleges and universities of South Carolina.

The membership of the Commission on Higher Education must be as follows:

(1) Nine members, six to represent each of the congressional districts of this State appointed by the Governor upon the recommendation of a majority of the senators and a majority of the members of the House of Representatives comprising the legislative delegation from the district and three members appointed from the State at-large upon the advice and consent of the Senate. Each representative of a congressional district must be a resident of the congressional district he represents. In order to qualify for appointment, the representatives from the congressional districts and those appointed at large must have experience in at least one of the following areas: business, the education of future leaders and teachers, management, or policy. A member representing the congressional districts or appointed at large must not have been, during the succeeding five years, a member of a governing body of a public institution of higher learning in this State and must not be employed or have immediate family members employed by any of the public colleges and universities of this State. These members must be appointed for terms of four years and shall not serve on the commission for more than two consecutive terms. However, the initial term of office for a member appointed from an even-numbered congressional district shall be two years.

If the boundaries of the congressional districts are changed, members serving on the commission shall continue to serve until the expiration of their current terms, but successors to members whose terms expire must be appointed from the newly defined congressional districts. If a congressional district is added, the commission must be enlarged to include a representative from that district.

(2) Three members to serve ex officio to represent the public colleges and universities appointed by the Governor with the advice and consent of the Senate. It shall not be a conflict of interest for any voting ex officio member to vote on matters pertaining to their individual college or university. One member must be serving on the board of trustees of one of the public senior research institutions, one member must be serving on the board of trustees of one of the four-year public institutions of higher learning, and one member must be a member of one of the local area technical education commissions or the State Board for Technical and Comprehensive Education to represent the State Board for Technical and Comprehensive Education. These members must be appointed to serve terms of two years with terms to rotate among the institutions.

(3) One ex officio member to represent the independent colleges and universities by the Governor upon the advice and consent of the Senate. The individual appointed must be serving as a member of the Advisory Council of Private College Presidents. This member must be appointed for a term of two years and shall serve as a nonvoting member.

(4) One at-large member to serve as chairman appointed by the Governor with the advice and consent of the Senate. This member must be appointed for a term of four years and may be reappointed for one additional term; however, he may serve only one term as chairman.

The Governor, by his appointments, shall assure that various economic interests and minority groups, especially women and blacks, are fairly represented on the commission and shall attempt to assure that the graduates of no one public or private college or technical college are dominant on the commission. Vacancies must be filled in the manner of the original appointment for the unexpired portion of the term. All members of the commission shall serve until their successors are appointed and qualify."

Higher education mission

SECTION 2. The 1976 Code is amended 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 which enable 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 colleges with a mission as stated in item (4) and primarily focused on technical education and the economic development of the State."

Responsibilities of commission

SECTION 3. 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 examining the state's institutions of higher learning relative to both short and long-range programs and missions which 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."

Critical success factors and performance indicators

SECTION 4. 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) Quality 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 goals 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) Instructional 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, programs, 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 nonacademic 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.

(C) The commission, when using the critical success factors for the purpose of funding recommendations for institutions of higher learning, is required to use objective, measurable criteria.

(D) Critical success factors developed and used for the purpose of funding recommendations shall be those which are directly related to the missions of the particular type of institution as outlined in Section 59-103-15(B) and not those factors which are not relevant to the success factors of the particular type of institution."

Budget and program approval procedures revised

SECTION 5. Section 59-103-35 of the 1976 Code, as last amended by Act 178 of 1993, is further amended to read:

"Section 59-103-35. All public institutions of higher learning shall submit annual budget requests to the commission in the manner set forth in this section. The State Board for Technical and Comprehensive Education shall submit an annual budget request to the commission representing the total 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 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. The provisions of this paragraph do not apply to any capital improvement projects funded in whole or in part prior to July 30, 1996.

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."

Duties and functions of commission revised

SECTION 6. 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;

(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, reduction, expansion, or consolidation of an institution under this item (5) shall be as promulgated in regulations of the commission which shall be submitted to and approved by the General Assembly;

(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."

Technical corrections

SECTION 7. Section 59-103-60 of the 1976 Code, as last amended by Act 137 of 1995, is further 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 may 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."

Closure of an institution

SECTION 8. 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."

New construction and purchases

SECTION 9. 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 or purchase any new permanent facility at any location other than on a currently approved campus or on property immediately contiguous thereto unless such new location or purchase of improved or unimproved real property has been approved by the commission."

References incorporated; cost of Palmetto Fellows Scholarships

SECTION 10. 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 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 mean 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. 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 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 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 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 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 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 achievement must include, but is not limited to, a description of criteria by which such institutional 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 achievement program.

(3) The commission shall prepare a report that must include results of institutional 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 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 achievement, all state-supported colleges and universities shall describe their progress in developing assessment programs and submit information on student achievement to the commission."

Report contents revised

SECTION 11. 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 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, post-secondary institutions and shall allow comment upon the draft report. The Commission on Higher Education shall develop and adopt a format for the report and shall ensure consistent reporting and collecting of the data in the report by the institutions.

(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 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 and the change in the total number of minority students enrolled over the past five years;

(8) the percent 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;

(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;

(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 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 shall make no funding decision, capital outlay 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 in the annual report to report on the progress of institutions of higher education in implementing assessment programs, 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."

Changes to single-gender programs; effective date of section

SECTION 12. Subsections (A), (B), and (C) of Section 95, Part II of Act 145 of 1995, are amended to read:

"(A) The General Assembly finds that some students, both male and female, benefit from attending a single-gender college. For these students, the opportunity to attend a single-gender college is a valuable experience, likely to lead to better academic and professional achievements. The General Assembly therefore adopts the findings of fact in U.S. v. Commonwealth of Virginia, 44 F.3d 1229, 1232, 1238 (4th Cir. 1995) that `single-gender education at the college level is beneficial to both sexes'. Further, in that single-gender education is both beneficial and justifiable, the General Assembly finds that providing opportunities for students to attend a single-gender college fulfills an important and legitimate state objective, and therefore declares and stipulates that it is the public policy of the State to support the establishment and maintenance of single-gender programs of higher learning for both sexes. Single-gender offerings to both men and women need not be identical in form and detail, but should be designed to produce substantively comparable outcomes.

(B) The General Assembly shall annually provide such funding as may be necessary, under the auspices of the Commission on Higher Education, to establish and maintain approved single-gender offerings, provided that the commission shall not be authorized to require any change to a court approved single-gender education program which would hinder the program's ability to produce a substantively comparable outcome.

(C) This section takes effect July 1, 1996, and upon approval of a single-gender program by any court of competent jurisdiction."

Time effective

SECTION 13. This act takes effect July 1, 1996.

Approved the 20th day of May, 1996.