South Carolina General Assembly
111th Session, 1995-1996

Bill 3


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       3
Type of Legislation:               General Bill GB
Introducing Body:                  Senate
Introduced Date:                   19950110
Primary Sponsor:                   Passailaigue 
All Sponsors:                      Passailaigue, McConnell, Ford,
                                   Land, Mitchell, Rose, Waldrep,
                                   Elliott, Washington, Reese
Drafted Document Number:           RES9449.ELP
Residing Body:                     Senate
Current Committee:                 Finance Committee 06 SF
Subject:                           Lottery for Education Act



History


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

Senate  19950112  Committed to Committee                   06 SF
Senate  19950112  Recalled from Committee                  04 SED
Senate  19950110  Introduced, read first time,             04 SED
                  referred to Committee
Senate  19940919  Prefiled, referred to Committee          04 SED

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 TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 143 SO AS TO ENACT THE EXCELLENCE CREATED THROUGH EXEMPLARY LEADERSHIP (EXCEL) PROGRAM TO PROVIDE SCHOLARSHIPS TO STUDENTS ENROLLED IN INSTITUTIONS OF HIGHER LEARNING IN SOUTH CAROLINA WHO HAVE BOTH A "B" AVERAGE AND NO CRIMINAL CONVICTIONS, TO AUTHORIZE THE COMMISSION ON HIGHER EDUCATION TO ADMINISTER THE PROGRAM, TO SET ELIGIBILITY REQUIREMENTS BASED ON NEED, AND TO PROVIDE FOR FUNDING FROM NET PROCEEDS OF LOTTERY GAMES.

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

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

"CHAPTER 143

South Carolina Lottery for Education Act

Section 59-143-10. (A) The Excellence Created through Exemplary Leadership (EXCEL) program funded from the net proceeds of lottery games conducted by the State as provided in Section 7, Article XVII of the Constitution of this State is hereby created. The EXCEL account which is separate and distinct from the general fund of the State is established to provide tuition scholarships to persons enrolling in undergraduate programs at institutions of higher learning in South Carolina. The Commission on Higher Education shall administer expenditures from this account and the provisions of this chapter.

(B) For the purposes of this chapter, an institution of higher learning means a four-year, two-year, or technical public institution of higher learning in South Carolina and any independent eleemosynary junior or senior college in South Carolina whose major campus and headquarters are located within South Carolina and which is accredited by the Southern Association of Colleges and Secondary Schools.

Section 59-143-20. (A) The State shall pay the tuition of a student, to the extent provided for in Sections 59-143-30 and 59-143-40, who enrolls in a degree or certificate program at any South Carolina institution of higher learning and who:

(1) resided in South Carolina during the twelve months preceding application to the program;

(2) has a cumulative `B' average or 3.0 on a 4.0 scale, either upon graduation from high school or at the end of at least one year of study at an institution of higher learning;

(3) has no criminal convictions, excluding minor traffic offenses;

(4) is found to be in financial need as determined in this chapter; and

(5) either:

(a) has graduated from a South Carolina high school; or

(b) has received a General Education Development Certificate from the State Board for Technical and Comprehensive Education.

(B) After an initial award, a student may continue to receive an EXCEL Scholarship for a maximum of four academic years if the student:

(a) has maintained a cumulative `B' average or 3.0 on a 4.0 scale;

(b) is enrolled for not less than two semesters or three quarters in an academic year unless active military service prevents continued enrollment; and

(c) has no criminal convictions, excluding minor traffic violations.

(C) A student whose average falls below a `B' or 3.0 on a 4.0 scale while receiving an EXCEL Scholarship will remain eligible to renew the scholarship for a probational period of one year. If the student does not attain a cumulative 3.0 average during the probational period, he is ineligible to receive an EXCEL Scholarship after the probationary period.

(D) A student who has received an EXCEL Scholarship but becomes ineligible under subsection (C) of this section may be eligible for an EXCEL loan in the amount in which the student would otherwise be eligible for an EXCEL Scholarship. A student whose cumulative grade point average is below a 2.5 on a 4.0 scale will not be eligible for an EXCEL loan. The terms of and eligibility requirements for the loan shall be determined by the commission but in no case shall the interest rate exceed the rate for Stafford Loans.

Section 59-143-30. (A) The amount of the EXCEL Scholarship for otherwise eligible students shall be based on the yearly adjusted gross family income for the preceding year. If the adjusted gross family income is $50,000 or less, the student is eligible for an EXCEL Scholarship up to the amount of the cost of tuition at the school in which he is enrolled. If the income is greater than $50,000, the percentage of tuition paid shall be reduced by the percentage that the income is greater than $50,000. EXCEL Scholarship awards shall be established annually by the commission subject to availability of funds and shall be distributed on a pro rata basis. The commission is authorized to periodically adjust the $50,000 figure based on inflation.

(B) For the purposes of this chapter, adjusted gross family income means the adjusted gross income, as determined by the Internal Revenue Service, of the student and of any person who claims the student as a dependent for federal income tax purposes.

Section 59-143-40. The commission shall promulgate regulations to implement this chapter which provide:

(a) a formula for adjusting scholarships within the guidelines of Section 59-143-30 so as to reflect factors other than adjusted gross income, such as the number of family members in the household, which may affect a family's ability to pay;

(b) a formula for allowing deviations, based on the difficulty of the area of study in which the student is enrolled, from the grade requirements in Section 59-143-20;

(c) a mechanism for informing all students of the availability of the assistance provided pursuant to this chapter early in their schooling so as to motivate students toward academic achievement and lawful conduct;

(d) application forms, financial audit procedures, other program audit procedures, and other matters related to efficient operation; and

(e) a monitoring system to ensure that any criminal convictions of the applicants are discovered.

Section 59-143-50. To finance the EXCEL Scholarships, one half of the net proceeds from the state lottery must be deposited in the EXCEL account as provided in Section 7 of Article XVII of the State Constitution. The commission shall award scholarships based on the amount of funds available after the close of the fiscal year and make payments on a pro rata basis to ensure the financial stability of the EXCEL Fund. The commission shall maintain the fund according to accepted business practices so as to prevent depletion and to prepare for projected growth in the number of applicants and in future disbursements. The payments shall be made directly to the public institution upon the receipt of written notice from the institution that the student is enrolled.

Section 59-143-60. The student must apply for all federal grants before receiving an EXCEL Scholarship. No student may receive an EXCEL Scholarship under this chapter in an amount greater than the tuition charged by the school. When total scholarship and grant assistance from all sources, including an EXCEL Scholarship, exceeds tuition, the EXCEL Scholarship must be reduced by the amount in excess of the tuition."

SECTION 2. Subject to approval of the Governor, this act shall take effect upon ratification of the amendment to Section 7, Article XVII of the Constitution of the State.

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