South Carolina General Assembly
113th Session, 1999-2000

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Bill 535


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                      535
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  19990225
Primary Sponsor:                  Short
All Sponsors:                     Short, Bryan, Washington, Cork, Setzler, 
                                  Anderson, Mescher, Hayes, Wilson, Drummond, 
                                  Waldrep, Jackson, Ford, Rankin, Moore, Land, 
                                  J. Verne Smith, Hutto, Branton, Russell, 
                                  Matthews, Leventis, Reese, Passailaigue, 
                                  Glover, McGill, Elliott, Saleeby, Holland
Drafted Document Number:          l:\council\bills\gjk\20291afc99.doc
Companion Bill Number:            3620
Residing Body:                    House
Current Committee:                Education and Public Works Committee 21 
                                  HEPW
Date of Last Amendment:           19990325
Subject:                          First Steps to School Readiness Act, 
                                  Schools and School Districts, Children's First 
                                  Steps Trust Fund


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
House   19990527  Recommitted to Committee               21 HEPW
House   19990525  Committee report: Favorable with       21 HEPW
                  amendment
House   19990331  Introduced, read first time,           21 HEPW
                  referred to Committee
Senate  19990330  Read third time, sent to House
Senate  19990325  Debate interrupted
Senate  19990325  Amended, read second time, 
                  ordered to third reading 
                  with notice of general amendments
Senate  19990324  Made Special Order
Senate  19990323  Committee amendment adopted
Senate  19990318  Committee report: Favorable with       04 SED
                  amendment
Senate  19990311  Co-Sponsor added by Senator                    Drummond
                                                                 Waldrep
                                                                 Jackson
                                                                 Ford
                                                                 Rankin
                                                                 Moore
                                                                 Land
                  J. Verne
                  Smith
                                                                 Hutto
                                                                 Branton
                                                                 Russell
                                                                 Matthews
                                                                 Leventis
                                                                 Reese
                                                                 Passailaigue
                                                                 Glover
                                                                 McGill
                                                                 Elliott
                                                                 Saleeby
                                                                 Holland
Senate  19990225  Introduced, read first time,           04 SED
                  referred to Committee


                             Versions of This Bill
Revised on March 18, 1999 - Word format
Revised on March 23, 1999 - Word format
Revised on March 25, 1999 - Word format
Revised on May 25, 1999 - Word format

View additional legislative information at the LPITS web site.


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

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

May 25, 1999

S. 535

Introduced by Senators Short, Bryan, Washington, Cork, Setzler, Anderson, Mescher, Hayes, Wilson, Drummond, Waldrep, Jackson, Ford, Rankin, Moore, Land, J. Verne Smith, Hutto, Branton, Russell, Matthews, Leventis, Reese, Passailaigue, Glover, McGill, Elliott, Saleeby and Holland

S. Printed 5/25/99--H.

Read the first time March 31, 1999.

            

THE COMMITTEE ON EDUCATION AND PUBLIC WORKS

To whom was referred a Bill (S. 535), to amend Title 59, Code of Laws of South Carolina, 1976, relating to education by adding Chapter 152, so as to enact the "South Carolina First Steps To Readiness Act", etc., respectfully

REPORT:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by inserting before the enacting words:

/Whereas, recent research has shown that children's brains develop more rapidly and earlier than previously understood and that early stimulation of the brain increases the learning ability of a child; and

Whereas, recent research in neuroscience supports the critical importance of the early childhood years and its life-long effects on a child's development; and

Whereas, the General Assembly realizes that without proper care, nurturing, and support during the early years of life, children have difficulty learning when they enter school; and

Whereas, parents have the primary role and duty to raise, educate, and transmit values to their children; while communities can support parents as the primary caregivers and educators of their young children; and

Whereas, the members of the General Assembly recognize that improving results for children and their families can best be accomplished when state government works in partnership with communities and families to define common goals, expected results, and benchmarks for services to children and families; joins with communities and families in building the capacity to accomplish shared results; and supports local efforts through more efficient state accountability, data collection, and administrative systems. Now, therefore, /

Amend the bill further, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. This act may be cited as the "South Carolina First Steps to School Readiness Act".

SECTION 2. Title 59 of the 1976 Code is amended by adding:

"CHAPTER 152

South Carolina First Steps to School Readiness

Section 59-152-10. There is established South Carolina First Steps to School Readiness, a comprehensive, results-oriented initiative for improving early childhood education development by providing, through county partnerships, public and private funds and support for high-quality education services for children and by providing support for their families' efforts toward enabling their children to reach school ready to learn.

Section 59-152-20. The purpose of the First Steps initiative is to develop, promote, and assist efforts of agencies, private providers, and public and private organizations and entities, at the state level and the community level, to collaborate and cooperate in order to focus and intensify services, assure the most efficient use of all available resources, and eliminate duplication of efforts to serve the education needs of young children and their families. First Steps funds must not be used to supplant or replace any other funds being spent on services but must be used to expand, extend, improve, or increase access to services or to enable a community to begin to offer new or previously unavailable services in their community. The South Carolina First Steps to School Readiness Board of Trustees, Office of First Steps to School Readiness, and the county first steps partnerships shall assure that collaboration, the development of partnerships, and the sharing and maximizing of resources are occurring before funding for the implementation grants, as provided for in this chapter, is made available.

Section 59-152-30. The goals for South Carolina First Steps to School Readiness initiative are to:

(1) provide parents with access to the support they might seek and want to strengthen their families and to promote the optimal education development of their preschool children;

(2) promote high quality preschool programs that provide a healthy environment that will promote normal growth and development;

(3) mobilize communities to focus on providing enhanced services to support families and their young children so as to enable every child to reach school healthy and ready to learn;

(4) provide services so all children arrive at school ready to learn; and

(5) increase comprehensive services for children at increased risk for major physical, developmental, and learning problems.

Section 59-152-40. The South Carolina First Steps to School Readiness Board of Trustees established in Section 20-7-6101 shall oversee the South Carolina First Steps to School Readiness initiative.

Section 59-152-50. The South Carolina First Steps to School Readiness Board of Trustees shall establish an Office of South Carolina First Steps to School Readiness within the State Department of Education. The office shall:

(1) provide to the board information on best practices, successful strategies, model programs, and financing mechanisms;

(2) review the county partnerships' plans and budgets in order to provide any needed technical assistance and recommendations regarding grant proposals and improvement in meeting statewide and local goals;

(3) provide technical assistance, consultation, and support to county partnerships to facilitate their success including, but not limited to, model programs, strategic planning, leadership development, best practice, successful strategies, collaboration, financing, and evaluation;

(4) submit an annual report to the board by December first which includes, but is not limited to, the statewide needs and resources available to meet the goals and purposes of the First Steps to School Readiness initiative, the ongoing progress and results of the First Steps to School Readiness initiative statewide and locally, fiscal information on the expenditure of funds, and recommendations and legislative proposals to further implement the South Carolina First Steps to School Readiness initiative statewide;

(5) provide for on-going data collection and contract for an in-depth performance audit due June 1, 2002, and every three years thereafter to ensure that statewide goals and requirements of the First Steps to School Readiness initiative are being met; and

(6) coordinate the South Carolina First Steps to School Readiness initiative with all other state, federal, and local public and private efforts to promote school readiness of young children and support for their families.

Section 59-152-60. (A) The Office of First Steps to School Readiness, in collaboration with each county legislative delegation, shall initiate county forums for the purpose of bringing together stakeholders who are actively involved or interested in early childhood development and education so as to initiate a county first steps partnership.

(B)(1) Not later than October 1, 1999, at a meeting of each county first steps partnership, participants shall, by majority vote, elect one member from each of these categories to sit on its county first steps partnership board:

(a) pre-kindergarten through primary educators;

(b) family education, training, and support providers;

(c) childcare and early childhood development/education providers;

(d) healthcare providers;

(e) transportation providers;

(f) non-profit organizations that provide services to families and children;

(g) faith community; and

(h) business community.

(2) Participants shall also elect, by majority vote, three parents of pre-school children. After the first year of the implementation of the First Steps to School Readiness initiative, parents serving on the county first steps partnership board must have pre-school children being served by First Steps programs. If it is necessary to replace a parent on the board for this reason, parents who are currently board members shall continue to serve until successors are elected and qualify.

(3) In addition to the membership enumerated in subsection (1), four additional members must be elected from the early childhood education category to serve on the county first steps partnership board.

(4) Each county legislative delegation may appoint up to eight additional members to its county first steps partnership board. These appointments must have specific interests in improving the readiness of young children for school. When making appointments, the legislative delegation shall make every effort to assure that all areas of the county are adequately represented and that appointments reflect the diversity of the county.

(5) Each of the following shall designate one member to serve as a member of its county first steps partnership board:

(a) county department of social services;

(b) county department of health and environmental control;

(c) local technical college;

(d) head start program;

(e) county public library; and

(f) a public four year college or university, if one is located in the county.

(6) Each school district in the county shall designate one member to serve as a member of its county first steps partnership board.

(7) Members who miss more than three consecutive meetings without excuse or members who resign must be replaced in the same manner as their predecessor.

(C) The terms of the members of a county first steps partnership board are for two years and until their successors are elected and qualify. Members may be re-elected to serve on the board by the partnership, however, membership on the board may not exceed six consecutive years.

(D) The chairman of a county first steps partnership board must be elected by majority vote of the board. The chairman shall serve a one-year term; however, the chairman may be elected to subsequent terms not to exceed a total of four consecutive years.

(E) County first steps partnerships must have policies and procedures for conducting meetings and disclosing records comparable to those provided for in the Freedom of Information Act. Prior to every vote taken by the board, members must abstain from voting if the issue being considered would result in a conflict of interest. The abstention must be noted in the minutes of the meeting.

(F) The primary purpose of county first steps partnership meetings must be to develop consensus statements concerning priority needs and objectives for attention by the county first steps partnership board.

Section 59-152-70. (A) A county first step partnership board shall, among other powers and duties:

(1) establish by-laws necessary to effectuate the provisions of this chapter which must include the creation of a periodic meeting schedule;

(2) coordinate a collaborative effort to bring the community together to identify the area needs related to the goals of the First Steps to School Readiness initiative;

(3) facilitate the coordination and collaboration among service providers at the county level which must include providing increased availability, accessibility, quality, and efficiency of services to young children and their families;

(4) create and annually revise a county needs assessment;

(5) create a comprehensive strategic plan for early childhood education development and school readiness and an integrated service delivery model to address the identified needs;

(6) coordinate and oversee the implementation of the comprehensive strategic plan including, but not limited to, direct service provision, contracting for service provision, and organization and management of volunteer programs;

(7) keep accurate records of partnership's meetings, programs and activities;

(8) implement fiscal policies and procedures as needed to ensure fiscal accountability of all funds appropriated to the partnership;

(9) submit an annual report, on or before October first, to the South Carolina First Steps to School Readiness Board of Trustees. The first annual report must be submitted October 1, 2000. This report must include, but is not limited to:

(a) determination of the current level and effectiveness of services for young children and their families;

(b) strategic goals for increased availability, accessibility, quality, and efficiency of activities and services for young children and their families which will enable children to reach school ready to learn;

(c) monitoring of progress toward strategic goals;

(d) report on implementation activities;

(e) recommendations for changes to the strategic plan which may include new areas of implementation;

(f) evaluation and report of program effectiveness and client satisfaction before, during, and after the implementation of the strategic plan

(g) estimation of cost savings attributable to increased efficiency and effectiveness of delivery of services to young children and their families.

(B) Each county first steps partnership may, in the performance of its duties, employ or acquire administrative, clerical, stenographic, and other personnel as may be necessary to effectuate the provisions of this section. However, overhead costs of the partnership may not exceed eight percent of its grant allocation unless prior approval is received from the First Steps to School Readiness Board of Trustees.

(C) Each county first steps partnership may apply for, receive, and expend federal, state, and local funds, grants, and other funding.

(D) Employees of day care facilities receiving grant funds must earn a minimum of one-half of the hours required for day care certification from professional development programs offered through an accredited educational institution.

(E) Each county first steps partnership shall establish, if one is not currently operating, a site to serve as a resource center for agencies, parents, and children which shall include information on preschool initiatives. However, any new site established may not be housed within a building being used as a school as defined in Section 59-1-150.

Section 59-152-80. (A) It is the intent of the General Assembly that the first steps to school readiness initiative be implemented as soon as county first steps partnerships are ready to utilize the funds efficiently and effectively to improve services.

(B) After a county first steps partnership board is formed, it shall submit a first year needs assessment and strategic planning grant application to the South Carolina First Steps to School Readiness Board of Trustees in a format specified by the board. The South Carolina First Steps to School Readiness Board of Trustees shall establish criteria for needs assessment and strategic planning grant allocations. The criteria shall include, but is not limited to, total population covered by the partnership and quality of any pre-existing needs assessment and/or strategic plans for that geographic area.

(C) Upon completion and review of the first year needs assessment and strategic plan, a county first steps partnership may submit an application to the South Carolina First Steps to School Readiness Board of Trustees for an implementation grant. The grant application must be in a format specified by the board which shall include, but is not limited to, a description of the needs of children and their families in the local area, assets and resources available, explanation of how supports and services are to be organized and delivered, proposed strategies to address needs as they relate to the goals of South Carolina First Steps to School Readiness initiative, measurable objectives, interim goals, and an evaluation component.

(D) The South Carolina First Steps to School Readiness Board of Trustees shall establish criteria for implementation grant allocations. Priority must be given to strategic plans that incorporate programs with demonstrated success. The criteria shall include, but is not limited to, the area's ability to support the strategic plan initiative, average per capita income, and social and economic characteristics. The criteria also shall take into account the standing of the geographical area covered by a county partnership in relation to the statewide Kids Count indicators.

(E) All activities and services provided by a county first steps partnership through the implementation of its strategic plan must be made available on a voluntary basis and may include, but is not limited to:

(1) lifelong learning:

(a) school readiness;

(b) literacy;

(c) parenting skills; and

(d) adult and continuing education.

(2) quality child care:

(a) staff training and professional development incentives;

(b) quality cognitive learning programs;

(c) voluntary accreditation standards;

(d) accessibility; and

(e) affordability.

(3) health care:

(a) nutrition;

(b) affordable access to quality age-appropriate health care;

(c) early and periodic screenings to include, but not be limited to, vision and hearing screenings; and

(d) immunizations.

(4) transportation:

(a) coordinated service;

(b) accessibility;

(c) increased utilization efficiency; and

(d) affordability.

(F) Any part of the initiative within the county strategic plan using local district resources within a school district must be conducted only with approval of the district's local board of trustees.

Section 59-152-90. Implementation grants must be funded annually and may be awarded for up to three years. Implementation grants are renewable based upon criteria established by the South Carolina First Steps to School Readiness Board of Trustees, including the results of performance audits.

Section 59-152-100. In developing these plans, a county first steps partnership must be given sufficient flexibility; however, the partnership is accountable to the South Carolina First Steps to School Readiness Board of Trustees for fiscal management and program results.

Section 59-152-110. (A) Implementation grants provided to county first steps partnerships must be used to address the needs of young children and their families as identified in the partnerships' comprehensive plans. The funds must be used to expand, extend, or improve the quality of provided services if there is evidence as to existing programs' effectiveness, offer new or previously unavailable services in the area or increase access to services. Grant funds may not supplant current expenditures by counties or state agencies on behalf of young children and their families and may not be used where other state or federal funding sources are available or could be made available to that county or local community.

(B) Funds received for implementation of a county partnership's strategic plan may not be used for capital expenses. However, if the county first steps partnership demonstrates that capital expenditure is a priority need for these local initiative and other state or federal funds for these projects are insufficient and the capital expenditure is necessary to provide services to under-served children and families, a county first steps partnership may request assistance from the Human Services Facility Consolidation Board as established in Section 1-1-1310.

Section 59-152-120. County first steps partnerships shall provide an annual match of not less than twenty percent. However, the South Carolina First Steps to School Readiness Board of Trustees may decrease the percentage requirement for a county based on their capacity to provide that match. Private individuals and groups must be encouraged to contribute to this endeavor. No more than one-half of the local match may be in-kind donated resources. Only in-kind donations, as defined by the standard fiscal accountability system provided for in Section 59-152-140, which meet the criteria established by the South Carolina First Steps to School Readiness Board of Trustees and that are quantifiable may be applied to the in-kind match requirement.

The Office of the South Carolina First Steps to School Readiness shall establish guidelines and reporting formats for county partnerships to document expenses to ensure they meet matching fund requirements. The office shall compile a report annually on the private cash and in-kind contributions received by the South Carolina First Steps to School Readiness Board of Trustees and county first steps partnerships.

Section 59-152-130. To ensure effective use of funds, awards under contract for county first steps partnerships, with the approval of the Office of First Steps to School Readiness, may be carried forward and used in the following fiscal year. Funds appropriated to South Carolina First Steps to School Readiness may also be carried forward into subsequent years.

Section 59-152-140. (A) The Office of First Steps to School Readiness shall develop and require county first steps partnerships to adopt and implement a standard fiscal accountability system including, but not limited to, a uniform, standardized system of accounting, internal controls, payroll, fidelity bonding, chart of accounts, and contract management and monitoring. The accountability system shall require competitive bids for the purchase or procurement of goods and services of ten thousand dollars or more. A bid other than the lowest bid may be accepted by a majority vote of the county partnership board if other considerations outweigh the cost factor; however, written justification must be filed with the Office of First Steps to School Readiness. The Office of First Steps to School Readiness may contract with outside firms to develop and ensure implementation of this standard fiscal accountability system, and the Office of First Steps to School Readiness may inspect fiscal and program records of county first steps partnerships to ensure their compliance with the required system. The Office of First Steps to School Readiness may contract with a state entity with existing means for developing contracts and disbursing funds in order to make use of the existing infrastructure, if it is efficient and not administratively burdensome to partnerships.

(B) Each county first steps partnership shall expend funds through the South Carolina First Steps to School Readiness Board of Trustees or its fiscal designees until the capacity of the county first steps partnership to manage its fiscal and administrative responsibilities in compliance with the standard accountability system has been reviewed and certified by the South Carolina First Steps to School Readiness Board of Trustees or its designee.

(C) State or local grant funds received by a county first steps partnership must be deposited in a separate fund and may not be commingled with other funds, including other grant funds. Disbursement may be made from this fund only on the written authorization of the individual who signed the grant application, the individual's designee or successor, and only for the purposes specified in the grant application. A person violating this section is guilty of a misdemeanor and upon conviction, must be fined five thousand dollars or imprisoned for six months, or both.

(D) The offenses of misuse, misappropriation, and embezzlement of public funds, apply to this chapter.

Section 59-152-150. The South Carolina First Steps to School Readiness Board of Trustees shall establish internal evaluation policies and procedures for county first steps partnerships for an annual review of the functioning of the partnership, implementation of strategies, and progress toward the interim goals and benchmarks. In instances where no progress has been made, the Office of First Steps to School Readiness shall provide targeted assistance and/or the South Carolina First Steps to School Readiness Board of Trustees may terminate the grant. In addition, a program evaluation of the First Steps to School Readiness initiatives at the state and local levels must be conducted every three years by an independent, external evaluator under contract with the South Carolina First Steps to School Readiness Board of Trustees. County first steps partnerships must agree to participate in such an evaluation in order to receive a First Steps grant. Subsequent grant approval and grant allocations must be dependent, in part, on the results of the evaluations. If an evaluation finds no progress has been made in meeting local goals or implementing strategies as agreed to in the First Steps grant, the grant must be terminated.

The purpose of the evaluation is to assess progress toward achieving the First Steps goals and to determine the impact of the initiative on children and families at the state and local levels. The impact assessment shall include, but is not limited to, transportation services, school readiness measures, benefits from child development services, immunization status, low birth-weight rates, parent literacy, parenting skills, parental involvement, and developmental screening results. During the course of the evaluation, if an evaluator determines that any state agency has failed to comply with the coordination and collaboration provisions as required in this chapter, the final report must reflect that information. Program evaluation reports must be reported to the General Assembly no later than three months after conclusion of the evaluation. All county first steps partnerships shall cooperate fully in collecting and providing data and information for the evaluation."

SECTION 3. Chapter 7, Title 20 of the 1976 Code is amended by adding:

"Article 27

South Carolina First Steps to School Readiness Board of

Trustees

Section 20-7-6101. There is established the South Carolina First Steps to School Readiness Board of Trustees which shall oversee the South Carolina First Steps to School Readiness initiative, a broad range of innovative early childhood development and education, family support, health services, and prevention efforts to meet critical needs of South Carolina's children through the awarding of grants to partnerships at the county level as provided for in Section 59-152-80. The board may accept gifts, bequests, and grants from any person or foundation. This fund, and grants from the fund, shall supplement and augment, but not take the place of, services provided by local, state, or federal agencies. The board of trustees shall carry out activities necessary to administer the fund including assessing service needs and gaps, soliciting proposals to address identified service needs, and establishing criteria for the awarding of grants.

Section 20-7-6120. There is created the South Carolina First Steps to School Readiness Board of Trustees which must include the Superintendent of Education and must be chaired by the Governor, who shall serve as ex officio voting members of the board. The board is composed of:

(1) eighteen members appointed in the following sectors, one each by the Governor, President Pro Tempore of the Senate, and the Speaker of the House of Representatives:

(a) parents;

(b) business community;

(c) medical community;

(d) early childhood educators;

(e) child care and development providers; and

(f) transportation.

(2) the chief executive officer of each of the following shall serve as an ex officio nonvoting member:

(a) Department of Social Services or his designee;

(b) Department of Health and Environmental Control or his designee;

(c) Department of Health and Human Services or his designee;

(d) Department of Mental Health or his designee;

(e) Department of Disabilities and Special Needs or his designee;

(f) Department of Alcohol and Other Drug Abuse Services or his designee;

(g) Department of Transportation or his designee; and

(h) Budget and Control Board, Division of Research and Statistics or his designee;

(3) The following organizations shall designate one member to serve as an ex officio non-voting member:

(a) South Carolina State Library;

(b) Transportation Association of South Carolina; and

(c) State Advisory Committee on the Regulation of Child Day Care Facilities.

The terms of the members are for four years and until their successors are appointed and qualify, except of those first appointed. When making the initial appointments, the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives shall designate three of their six appointments to serve a two year term only. Vacancies for any reason must be filled in the manner of the original appointment for the unexpired term. No member shall serve more than two terms or eight years, whichever is longer. Members who miss more than three consecutive meetings without excuse or members who resign must be replaced in the same manner as their predecessor.

Members may be paid per diem, mileage, and subsistence as established by the board not to exceed standards provided by law for boards, committees, and commissions.

A complete report of the activities of the South Carolina First Steps to School Readiness Board of Trustees must be made annually to the Governor, General Assembly, and the State Auditor.

Section 20-7-6130. The South Carolina First Steps to School Readiness Board of Trustees shall:

(1) develop a comprehensive long range initiative for improving early childhood education development and increasing school readiness;

(2) provide oversight on the implementation of South Carolina First Steps to School Readiness initiative at the state and county levels;

(3) facilitate the efficient coordination and collaboration among service providers at both the state and county level;

(4) facilitate and direct the establishment of county first steps partnerships;

(5) oversee the creation and annual revision of state and county needs assessments;

(6) aid in the prioritization, implementation, and evaluation of each county first steps partnership's strategic plans based on needs assessments;

(7) ensure increased availability, accessibility, quality, and efficiency of activities and services within local communities as they relate to the goals of the South Carolina First Steps to School Readiness initiative;

(8) provide technical assistance, consultation services, and support to county first steps partnerships;

(9) promulgate regulations, guidelines, policies and procedures for implementation of the South Carolina First Steps to School Readiness initiative;

(10) establish results oriented measures and objectives and assess whether services provided by county first steps partnerships to children and families are meeting the goals and achieving the results established for the First Steps initiative pursuant to Chapter 152, Title 59;

(11) establish criteria and procedures for awarding State First Steps grants to county first steps partnerships; and

(12) ensure cooperation among county first steps partnerships in the identification, application, and disbursement of assets from other funding sources.

(13) report annually to the General Assembly by January first on activities and progress to include recommendations for changes and legislative initiatives and results of program evaluations.

(14) receive gifts, bequests, and devices to be used for State First Steps Grants to county first steps partnerships.

Section 20-7-6140. The State Superintendent of Education shall employ, with the approval of the South Carolina First Steps Board of Trustees, a director of the Office of South Carolina First Steps to School Readiness and other staff as necessary to carry out the South Carolina First Steps to School Readiness initiative, established in Title 59, Chapter 152, and the duties and responsibilities assigned by the board. The director, with the approval of the South Carolina First Steps Board of Trustees, shall hire staff as is considered necessary to carry out the provisions of the initiative.

Section 20-7-6150. (A) A separate fund must be established to accept nongovernmental grants, gifts, and donations from any public or private source for the South Carolina First Steps to School Readiness initiative. Of the monies received in this fund, the First Steps to School Readiness Board of Trustees may allocate monies to local partnerships to meet the match required in Section 59-152-120 based on the local partnership's capacity to provide for the match. Of the monies received in this fund, each donor may designate a specific county to receive the funds. This money may be used to meet the local match required in Section 59-152-20. All funds may be carried forward from fiscal year to fiscal year. The State Treasurer shall invest the monies in this fund in the same manner as other funds under his control are invested. The South Carolina First Steps to School Readiness Board of Trustees shall administer and authorize any disbursements from the fund. Private individuals and groups must be encouraged to contribute to this endeavor.

(B) In addition, a separate fund within the state general fund must be established for monies that may be appropriated by the General Assembly for the South Carolina First Steps to School Readiness initiative. These funds may be carried forward from fiscal year to fiscal year. The State Treasurer shall invest the monies in this fund in the same manner as other funds under his control are invested. The South Carolina First Steps to school Readiness Board of Trustees shall administer and authorize any disbursements from the fund.

(C) All interest derived from the investment of the funds in subsections (A) and (B) shall remain a part of each respective fund.

SECTION 4. Chapter 1, Title 1 of the 1976 Code is amended by adding:

"Article 20

Human Services Facility Consolidation

"Section 1-1-1310. (A) It is the intent of the General Assembly to assist state and local human service agencies with the funding and financing of capital projects when proposed projects provide for the consolidation or co-location of several different agencies. Accordingly, there is created a Human Services Facility Consolidation Board consisting of:

(1) a chairman to be appointed by the Governor;

(2) a member of the House of Representatives to be appointed by the Speaker of the House of Representatives;

(3) a member of the Senate to be appointed by the President of the Senate;

(4) a member of the House of Representatives to be appointed by the Chairman of the Ways and Means Committee;

(5) a member of the Senate to be appointed by the Chairman of the Senate Finance Committee;

(6) the Chairman of the Joint Bond Review Committee; and

(7) a member appointed by the Governor who has knowledge and expertise in human service delivery systems and facility planning to advise and assist the board in its work.

The members of this board shall serve without compensation. The Executive Director of the Budget and Control Board is directed to assist the board in its duties and responsibilities. All agencies are directed to assist the board as requested by the executive director. The Chief of Health and Demographic Statistics of the Office of Research and Statistics, Budget and Control Board shall advise the board in its work. In its work, the board shall use quality methods and tools.

(B) The board shall:

(1) conduct an inventory of the state's human service delivery and facility infrastructure;

(2) identify communities where opportunities exist for co-location of related health and human service agencies for greater efficiency, economy, and benefit to the public;

(3) invite proposals from those communities for consolidation and co-location of facilities; and

(4) recommend, to the Joint Bond Review Committee and the Budget and Control Board, in priority order, those proposals that offer the greatest benefits to the public for ease of accessibility, convenience, and efficiency of service delivery and administration.

(C) The board shall develop and apply criteria for the review and selection of projects to be funded by the board. These criteria include, but are not limited to:

(1) demonstrated coordination with other service providers;

(2) efficiency of service delivery;

(3) consolidation of administrative functions;

(4) integration of data and client information systems;

(5) demonstration of non-duplication of services and facilities

(6) accessibility to facilities and programs by the public;

(7) local participation demonstrated by community support and matching funds;

(8) consideration of client location and transportation issues; and

(9) the co-location of a minimum of five state, federal and/or local human service agencies.

(10) other capital projects, not covered in items one through nine, as recommended by the South Carolina First Steps to School Readiness Board of Trustees.

(D) The board's recommendations, subject to the review by Joint Bond Review Committee and approval by the Budget and Control Board, must be the basis for selection for state financing of the proposed project. Projects approved by the board are authorized to utilize the funds designated by the Budget and Control Board as 'Human Facility Consolidation Capital Funds'. The board is authorized to develop and implement innovative financing plans for the projects selected and to establish conditions for the use of the funds. The Budget and Control Board is authorized to establish standards for the projects authorized to be funded."

SECTION 5. The 1976 Code is amended by adding:

"Section 43-1-240. The State Department of Social Services in establishing priorities and funding for programs and services which impact on children and families during the first years of a child's life, within the powers and duties granted to it, must support, as appropriate, the South Carolina First Steps to School Readiness Act, as established in Title 59, Chapter 152, at the state and local levels."

SECTION 6. The 1976 Code is amended by adding:

"Section 43-3-120. Each county board and office of social services in establishing priorities and funding for programs and services which impact on children and families during the first years of a child's life, within the powers and duties granted to it, must support, as appropriate, the South Carolina First Steps to School Readiness Act, as established in Title 59, Chapter 152, at the state and local levels."

SECTION 7. The 1976 Code is amended by adding:

"Section 44-1-280. The Board and the Department of Health and Environmental Control in establishing priorities and funding for programs and services which impact on children and families during the first years of a child's life, within the powers and duties granted to them, must support, as appropriate, the South Carolina First Steps to School Readiness Act, as established in Title 59, Chapter 152, at the state and local levels."

SECTION 8. It is the intent of the General Assembly that state agencies involved in early child care and development and education and in health and support services to families with young children shall actively support the South Carolina First Steps to School Readiness initiative. In addition to those agencies answering directly to the Governor, those agencies headed by boards and commissions or constitutional officers shall use their resources to support, as appropriate, the First Steps initiative. To this end, the State Health Plan and other appropriate state and federal plans must be amended, as they apply to services which support early childhood development and education, family support, and health.

SECTION 9. This act takes effect upon approval by the Governor. The provisions of this act are repealed six years after the effective date of this act unless reauthorized by the General Assembly./

Renumber sections to conform.

Amend totals and title to conform.

RONALD P. TOWNSEND, for Committee.

A BILL

TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION BY ADDING CHAPTER 152, SO AS TO ENACT THE "SOUTH CAROLINA FIRST STEPS TO READINESS ACT" WHICH IS AN INITIATIVE FOR IMPROVING EARLY CHILDHOOD DEVELOPMENT BY PROVIDING GRANTS TO LOCAL PARTNERSHIPS TO PROVIDE SERVICES AND SUPPORT TO CHILDREN AND THEIR FAMILIES TO ENABLE CHILDREN TO REACH SCHOOL READY TO LEARN; TO ESTABLISH GOALS FOR THIS INITIATIVE; TO PROVIDE FOR THE FUNCTIONS AND DUTIES OF THE OFFICE IMPLEMENTING AND OPERATING THE INITIATIVE; TO ESTABLISH ELIGIBILITY CRITERIA AND PROGRAM PARAMETERS FOR LOCAL PARTNERSHIPS; AND TO ESTABLISH FISCAL GUIDELINES, CRITERIA FOR LOCAL MATCHING FUNDS, AND EVALUATION REQUIREMENTS FOR LOCAL PARTNERSHIPS; TO AMEND ARTICLE 17, CHAPTER 7, TITLE 20 RELATING TO THE CHILDREN'S TRUST FUND OF SOUTH CAROLINA, SO AS TO CHANGE THE NAME OF THE FUND TO CHILDREN'S FIRST STEPS TRUST FUND, PROVIDE THAT IT SHALL OVERSEE THE FIRST STEPS TO SCHOOL READINESS ACT, AND TO REVISE THE PURPOSES OF THE TRUST FUND AND TO FURTHER PROVIDE FOR ITS GOVERNING BOARD, FUNCTIONS, DUTIES, AND FUNDING; TO ADD SECTIONS 43-1-240 AND 44-1-280 SO AS TO PROVIDE THAT THE DEPARTMENT OF SOCIAL SERVICES AND THE BOARD AND THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, IN ESTABLISHING PRIORITIES AND FUNDING FOR PROGRAMS AND SERVICES WHICH IMPACT ON CHILDREN AND FAMILIES DURING THE FIRST YEARS OF A CHILD'S LIFE, MUST SUPPORT THE FIRST STEPS TO SCHOOL READINESS ACT AT THE STATE AND LOCAL LEVELS; TO STATE THE INTENT OF THE GENERAL ASSEMBLY THAT STATE AGENCIES SUPPORT THE FIRST STEPS TO SCHOOL READINESS ACT; TO REQUIRE THE CODE COMMISSIONER TO REVISE REFERENCES IN THE SOUTH CAROLINA CODE TO CONFORM TO THIS ACT, AS FEASIBLE; TO PROVIDE THAT THE TERMS OF BOARD MEMBERS OF THE CHILDREN'S TRUST FUND OF SOUTH CAROLINA EXPIRE ON THIS ACT'S EFFECTIVE DATE; AND TO PROVIDE THAT FUNDS IN THE TRUST FUND PRIOR TO THIS ACT'S EFFECTIVE DATE MUST BE EXPENDED IN ACCORDANCE WITH THE PURPOSES OF THE FUND BEFORE AMENDMENT BY THIS ACT.

Whereas, recent research has shown that children's brains develop more rapidly and earlier than previously understood and that early stimulation of the brain increases the learning ability of a child; and

Whereas, recent research in neuroscience supports the critical importance of the early childhood years and its life-long effects on a child's development; and

Whereas, the General Assembly realizes that without proper care, nurturing, and support during the early years of life, children have difficulty learning when they enter school; and

Whereas, parents have the primary role and duty to raise, educate, and transmit values to their children, while communities can support parents as the primary caregivers and educators of their young children; and

Whereas, the members of the General Assembly recognize that improving results for children and their families can best be accomplished when state government works in partnership with communities and families to define common goals, expected results, and benchmarks for services to children and families; joins with communities and families in building the capacity to accomplish shared results; and supports local efforts through more efficient state accountability, data collection, and administrative systems. Now, therefore,

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

SECTION 1. This act may be cited as the "South Carolina First Steps to School Readiness Act".

SECTION 2. Title 59 of the 1976 Code is amended by adding:

"CHAPTER 152

South Carolina First Steps to School Readiness

Section 59-152-10. There is established South Carolina First Steps to School Readiness, a comprehensive, results-oriented initiative for improving early childhood development by providing, through public and private funds and support through local partnerships, high-quality early childhood development and education services for children from the prenatal development period through age five and by supporting their families' efforts toward enabling their children to reach school ready to learn.

Section 59-152-20. The purpose of the First Steps initiative is to develop, promote, and assist efforts of agencies, private providers, and public and private organizations and entities, at the state level and the community level, to collaborate and cooperate in order to focus and intensify services, assure the most efficient use of all available resources, and eliminate duplication of efforts to serve young children and their families. First Steps funds must not be used to supplant or replace any other funds being spent on services but must be used to expand, extend, improve, or increase access to services or to enable a community to begin to offer new or previously unavailable services in their community. The First Steps office, First Steps board, and the local partnerships shall assure that collaboration, the development of partnerships, and the sharing and maximizing of resources is occurring before funding for the implementation/management grants, as provided for in this chapter, is made available.

Section 59-152-30. The goals for South Carolina First Steps to School Readiness are to:

(1) increase comprehensive prenatal and maternity care so that fewer premature babies who are at increased risk for major physical, developmental, and learning problems are born to South Carolina mothers;

(2) provide services so all children receive the protection, nutrition, and health care needed to thrive at birth and in the early years so they arrive at school ready to learn;

(3) provide parents with access to the support they might seek and want to strengthen their families and to promote the optimal development of their preschool children;

(4) promote high quality and appropriate preschool programs that provide a healthy environment that will promote normal growth and development;

(5) mobilize communities to focus efforts on providing enhanced services to support families and their young children so as to enable every child to reach school healthy and ready to learn.

Section 59-152-40. The Board of Trustees for the Children's First Steps Trust Fund of South Carolina, established in Section 20-7-5020, shall oversee the South Carolina First Steps to School Readiness initiative. The staff employed pursuant to Section 20-7-5040 shall serve as the office of First Steps.

Section 59-152-50. The office of South Carolina First Steps to School Readiness shall:

(1) provide to the board information on best practice, successful strategies, model programs, and financing mechanisms;

(2) review the local partnerships' plans and budgets in order to provide technical assistance and recommendations regarding local grant proposals and improvement in meeting statewide and local goals;

(3) provide technical assistance, consultation, and support to local partnerships to facilitate their success including, but not limited to, model programs, strategic planning, leadership development, best practice, successful strategies, collaboration, financing, and evaluation;

(4) recommend to the board the applicants to be selected as First Steps partnerships and the grants to be awarded;

(5) submit an annual report to the board by November first which includes, but is not limited to, the statewide needs and resources available to meet the goals and purposes of First Steps, the ongoing progress and results of First Steps statewide and locally, fiscal information on the expenditure of funds, and recommendations and legislative proposals to further implement South Carolina First Steps statewide;

(6) provide for on-going data collection and contract for an in-depth performance audit every three years to ensure that statewide goals and requirements of First Steps are being met; and

(7) coordinate the First Steps initiative with all other state, federal, and local public and private efforts to promote good health and school readiness of young children.

Section 59-152-60. To be eligible to become a First Steps partnership, a private nonprofit corporation organized under Section 501(c)(3) of the Internal Revenue Code must be formed or expanded in a county or group of counties; however, developing partnerships which have not yet received 501(c)(3) status may qualify for grants if they have received a state charter for incorporation and meet other criteria as established by the board.

To be designated a developing partnership, an organization must have broad-based membership and meet any other requirements outlined by the First Steps board.

To be designated a First Steps partnership, the organization must:

(1) agree to coordinate a collaborative effort at the county or multi-county level which will bring the community together to identify the area needs related to the goals of First Steps to School Readiness; develop a comprehensive long-term plan for meeting those needs; and develop specific initiatives to implement the elements of the long-term plan;

(2) agree to coordinate and oversee the implementation of the partnership's initiatives, which may include such activities as direct service provision, contracting for service provision, and organization and management of volunteer programs;

(3) agree to a governing board for the partnership which is broad-based, as specified by the First Steps board and, to the extent possible within the area covered by the partnership, includes representatives from such groups as are on the First Steps board, school districts, local service agencies, and other persons with resources, skills, or knowledge that could contribute to the accomplishment of the goals of First Steps to School Readiness;

(4) implement fiscal policies and procedures as required by the First Steps office and as needed to ensure fiscal accountability;

(5) have policies and procedures for conducting meetings and disclosing records comparable to those provided for in the Freedom of Information Act; and

(6) agree to collect information and otherwise participate in the annual review and the three-year evaluation of operations and programs.

Section 59-152-70. Three levels of First Steps grants may be awarded as follows:

(1) Level One for the development of the collaborative effort and initiating a comprehensive plan;

(2) Level Two for development of the initiative and finalizing a comprehensive plan; and

(3) Level Three for implementation/management of activities and programs.

The level of grant awarded to a local partnership must be based on the readiness of the local partnership to implement the First Steps initiative. The First Steps board shall establish the criteria for qualifying for each grant level and the allocation amount for each. However, the allocations for the grants shall take into consideration the quality of the grant proposal, the population of children birth to age five contained in the area served by the partnership, the percentage of students in grades 1-3 who are eligible for the free and reduced price lunch program, and the area's ability to support the initiative.

Section 59-152-80. It is the intent of the General Assembly that First Steps be implemented as soon as local partnerships are ready to utilize the funds efficiently and effectively to improve services. To that end, for the first year of the initiative, no more than twelve Level Three implementation/management grants may be awarded; with at least one in each congressional district, if the local partnerships meet the criteria established by the First Steps board for an implementation/management grant. There are no limits to the number of Level One and Level Two grants that may be awarded; however, the First Steps board shall evaluate applicants based on their demonstrated capacity and the established criteria for each grant level.

Section 59-152-90. To obtain a grant, a First Steps partnership or developing partnership shall submit an application to the First Steps office in a format specified by the First Steps board. The application shall include, as appropriate to the level of grant applied for, a plan specifying the grant applied for, the level of funding requested, a description of need, assets, and resources based on the local needs assessment, and the proposed strategies to address the goals of South Carolina First Steps to School Readiness. Each grant may be awarded for up to three years and is renewable based upon criteria established by the First Steps board, including the results of performance audits.

Section 59-152-100. (A) To receive a Level Three implementation/management grant for First Steps to School Readiness, a First Steps partnership must develop a comprehensive, long-range plan to provide high quality early childhood development and education services. The plan must identify the needs of children and their families in the local area; determine how supports and services are to be organized and delivered; and establish interim goals for meeting the local and state goals for First Steps. In developing these plans, the First Steps partnership must be given sufficient flexibility, but they must be accountable for fiscal management, program management, and program results.

(B) All activities and services provided by a local partnership must be made available to young children and families on a voluntary basis and may include, but are not limited to:

(1) health services:

(a) prenatal and postpartum care and support;

(b) health care and early and periodic screenings, including developmental screenings and dental, vision, and hearing screenings;

(c) required immunizations;

(d) transportation services to health care;

(e) health and developmental services for children with disabilities;

(f) parent education services provided by health and education practitioners to parents of infants and young children;

(g) initiatives to reduce injuries to infants and toddlers;

(h) technical assistance and consultation for parents and child care providers on health and safety issues;

(2) education readiness:

(a) programs for building the foundations of reading and mathematics in young children;

(b) training incentives for child care and development workers;

(c) access to quality child care and development resources;

(d) technical assistance and professional development for child care and development providers;

(e) subsidized child-related services, including assistance for special needs children;

(3) family literacy and parenting:

(a) family literacy initiatives;

(b) parent education programs;

(c) other family-focused services.

Section 59-152-110. (A) Implementation/management grants provided to First Steps partnerships must be used to address the needs of young children and their families as identified in the partnerships' comprehensive plans. The funds must be used to expand, extend, or improve the quality of provided services if there is evidence as to existing programs' effectiveness, offer new or previously unavailable services in the area, or increase access to services. Grant funds may not supplant current expenditures by counties or state agencies on behalf of young children and their families and may not be used where other state or federal funding sources are available or could be made available to the geographic area covered by the partnership.

(B) A maximum of forty percent of all funds provided for local partnerships may be used to improve access to child care and development services, develop new child care services, or improve the quality of child care and development services in all settings, including in-home child care and development. However, only child care providers licensed or registered by the State may be beneficiaries or recipients of these funds.

(C) Funds for overhead costs must not exceed fifteen percent or a lesser rate as determined by the First Steps board based on audit findings.

(D) The grant may be used for capital expenses or to support activities and services for children, families, and providers. However, grant funds designated for activities and services may not be used for capital expenses unless the facilities are owned or operated by a public entity or a private nonprofit 501(c)(3) organization and the local partnership demonstrates to the satisfaction of the First Steps office that the capital expenditure is:

(1) a priority need for the local initiative and other state or federal funds for such projects are insufficient; and

(2) necessary to provide services to under-served children and families.

Funds approved for capital expenditures, as defined by the standard fiscal accountability system provided for in Section 59-152-130, may not exceed the level established by the First Steps board which must be a percent annually of the total funds for direct services applied to a local partnership's allocation.

Section 59-152-120. (A) The First Steps board, in conjunction with local partnerships and developing partnerships shall provide an annual statewide aggregate match as established by the First Steps board after consulting with business and foundation leadership. However, it shall be a goal that the statewide aggregate match be equal to ten percent of the State funds appropriated for the initiative. The First Steps board shall establish the match required of each local partnership and developing partnership and the timeframe within which the match must be provided. The match required of individual partnerships by the First Steps board should take into consideration such factors as:

(1) local wealth, using such indicators as the number and percentage of children eligible for free and reduced lunches in grades 1-3; and

(2) in-kind donated resources. Only in-kind donations, as defined by the standard fiscal accountability plan provided for in Section 59-152-130, which meet the criteria established by the First Steps board and that are quantifiable may be applied to the in-kind match requirement.

Expenses, including those paid both by cash and through in-kind contributions, incurred by other nonstate entities participating in local partnerships may be included in determining matching funds.

(B) The First Steps office shall establish guidelines and reporting formats for local partnerships to document expenses to ensure they meet matching fund requirements. The office shall compile a report annually on the private cash and in-kind contributions received by the First Steps Trust Fund and local partnerships.

Section 59-152-130. To ensure effective use of funds, awards under contract for local partnerships, with the approval of the First Steps office, may be carried forward and used in the following fiscal year. Funds appropriated to South Carolina First Steps to School Readiness may also be carried forward into subsequent years.

Section 59-152-140. (A) The First Steps office shall develop and require partnerships to adopt and implement a standard fiscal accountability system including, but not limited to, a uniform, standardized system of accounting, internal controls, payroll, fidelity bonding, chart of accounts, and contract management and monitoring. Additionally, the accountability system shall require competitive bids for the purchase or procurement of goods and services of ten thousand dollars or more. A bid other than the lowest bid may be accepted if other considerations outweigh the cost factor; however, written justification must be filed with the First Steps office. The First Steps office may contract with outside firms to develop and ensure implementation of this standard fiscal accountability system, and the First Steps office may inspect fiscal and program records of local partnerships and developing partnerships to ensure their compliance with the required system. The First Steps office may contract with a state entity with existing means for developing contracts and disbursing funds in order to make use of the existing infrastructure, if it is efficient and not administratively burdensome to partnerships.

(B) Each local partnership shall expend funds through the First Steps board or its fiscal designees until the capacity of the local partnership to manage its fiscal and administrative responsibilities in compliance with the standard accountability system has been reviewed and certified by the First Steps board or its designee.

Section 59-152-150. The First Steps board shall establish internal evaluation policies and procedures for local partnerships and developing partnerships for an annual review of the functioning of the partnership, implementation of strategies, and progress toward the interim goals and benchmarks as appropriate to the level of grant received. In instances where no progress has been made, the First Steps office shall provide targeted assistance and the First Steps board may terminate the grant. In addition, a program evaluation of the statewide and local First Steps to School Readiness must be conducted every three years by an independent, external evaluator under contract with the First Steps board; however, the selected evaluator shall be approved, and the evaluation overseen, by a committee consisting of three members, one appointed by the First Steps board, one appointed by the President Pro Tempore of the Senate and one appointed by the Speaker of the House and these committee members must be professionally recognized as proficient in child development, early childhood education, or a closely related field. Local partnerships must agree to participate in such an evaluation in order to receive a First Steps grant. Subsequent grant approval and grant allocations must be dependent, in part, on the results of the evaluations. If an evaluation finds no progress has been made in meeting local goals or implementing strategies as agreed to in the First Steps grant, the grant must be terminated.

The purpose of the evaluation is to assess progress toward achieving the First Steps goals and to determine the impact of the initiative on children and families at the state and local levels. The impact assessment shall include, but is not limited to, school readiness measures, benefits from child development services, immunization status, low birth-weight rates, parent literacy, parental involvement, and developmental screening results. Program evaluation reports must be reported to the General Assembly no later than three months after conclusion of the evaluation. All partnerships shall cooperate fully in collecting and providing data and information for the evaluation.

During the ninth year of the First Steps initiative, the Legislative Audit Council, using the cyclical evaluations as a basis, shall review the success and effectiveness of the initiative at the state and local levels and report to the General Assembly no later than January 1, 2009."

SECTION 3. Article 17, Chapter 7, Title 20 of the 1976 Code is amended to read:

"Article 17

Children's First Steps Trust Fund of South Carolina

Section 20-7-5010. There is established the Children's First Steps Trust Fund of South Carolina, an eleemosynary corporation, the resources of which shall stimulate oversee the South Carolina First Steps to School Readiness initiative, a broad range of innovative child abuse and neglect prevention programs early childhood development and education, family support, health services, and prevention efforts to meet critical needs of South Carolina's children through the awarding of grants to private nonprofit organizations at the local level as provided for in Section 59-152-50. The trust fund shall may accept gifts, bequests, and grants from any person or foundation. The trust fund and grants from the fund shall supplement and augment, but not take the place of, services provided by state agencies. No state agency is eligible to receive funds under this article. The board of trustees for the trust fund shall carry out activities necessary to administer the fund including assessing service needs and gaps, soliciting proposals to address identified service needs, and establishing criteria for the awarding of grants.

Section 20-7-5020. There is created the Board of Trustees for the Children's First Steps Trust Fund of South Carolina chaired by the Governor, who shall serve as an ex officio voting member of the board, or his designee. The board is composed of:

(1) nine fifteen members appointed by the Governor with the advice and consent of the Senate and shall include representatives of the following:

(a) parents of young children;

(b) the business community;

(c) the medical community;

(d) early childhood educators;

(e) child care and development providers; and

(f) First Steps partnership chairs, to be added when the first implementation/management grants are awarded;

(2) the State Superintendent of Education or his designee, as an ex officio voting member, who shall not serve as an officer of the board; and

(3) and the following ex officio nonvoting members:

(a) the Chairman of the Senate Education Committee or his designee;

(b) the Chairman of the House Education and Public Works Committee or his designee;

(c) the Director of the Department of Social Services or his designee;

(d) the Director of the Department of Health and Environmental Control or his designee;

(e) the Director of the Department of Health and Human Services or his designee;

(f) the Director of the Department of Mental Health or his designee;

(g) the Director of the Department of Disabilities and Special Needs or his designee; and

(h) the Director of the Department of Alcohol and Other Drug Abuse Services or his designee.

The Governor shall give consideration to recommendations for appointment made by the Joint Legislative Committee on Children. Of the members appointed by the Governor, one member must be appointed from each congressional district of the State, and three members must be appointed at large for the membership must be representative of all areas and regions of the State. The terms of the members are for four years and until successors are appointed and qualify, except members appointed from even-numbered congressional districts and one at-large member must be initially shall draw lots at the first meeting of the board to stagger the terms of office and determine one-half of the members to be appointed for terms of two years only. Vacancies for any reason must be filled in the manner of the original appointment for the unexpired term. No member shall serve more than two terms or eight years, whichever is longer. Members who miss more than three consecutive meetings without excuse or members who resign must be replaced by the Governor and shall serve until a successor is appointed or until the replaced member's term expires, whichever is earlier.

Three members must be knowledgeable in banking, finance, investments, tax laws, or business. Three members must be knowledgeable in the organization and administration of volunteer community services and grant administration. Three members must be knowledgeable in child development, child health, child psychology, education, juvenile delinquency, or other related field.

Members may be paid per diem, mileage, and subsistence as established by the board not to exceed standards provided by law for boards, committees, and commissions.

A complete report of the activities of the trust fund must be made annually to the General Assembly and the State Auditor.

Section 20-7-5030. To carry out its assigned functions, the board is authorized, but not limited to:

(A)(1) assess the critical child abuse and neglect prevention needs of children in cooperation with state agencies, establish priorities, and develop goals and objectives for the Trust fund; develop the First Steps comprehensive, long-range initiative for improving early childhood development by providing, through public and private means through local projects, high-quality early childhood development and education services for children from the prenatal development period through age five and by providing support for their families;

(2) establish guidelines, policies, and procedures for implementing South Carolina First Steps to School Readiness;

(3) establish outcome measures and assess whether the services provided to children and families received through First Steps are meeting the goals and achieving the outcomes established for First Steps pursuant to Chapter 152, Title 59;

(4) assess and develop recommendations for ensuring coordination and increasing the efficiency and effectiveness of state programs and funding and other programs and funding sources, as allowable, as necessary to carry out the First Steps to School Readiness initiative, including additional fiscal strategies, redeployment of state resources, and development of new programs;

(5) establish the criteria for selection of First Steps partnerships and for the allocations for grants to the partnerships;

(6) select the First Steps partnerships and award the grants to the partnerships;

(7) provide for an information center for programs, grants, and technical assistance sources, contracting for the center and for technical assistance as needed;

(8) provide oversight on the implementation of First Steps at the state and local levels;

(9) report annually to the General Assembly by January first on activities and progress of First Steps, including recommendations for changes and legislative initiatives, and the results of the program evaluations;

(B)(10) receive gifts, bequests, and devises for deposit and investment into the trust fund and for awarding grants to private nonprofit organizations;

(C)(11) invest trust fund monies;

(D) solicit proposals for programs which will be aimed at meeting identified child abuse and neglect prevention needs;

(E) provide technical assistance to private, nonprofit organizations, when requested, in preparing proposals for submission to the Trust fund;

(F) establish criteria for awarding of grants for child abuse and neglect prevention which shall include the consideration of at least:

(1) the priority of the service need that the proposal addresses;

(2) the quality and soundness of the proposal and its probable effectiveness in accomplishing its objectives;

(3) a cost-benefit analysis of the project;

(4) the degree of community support for the proposal;

(5) the utilization of local resources including volunteers, when appropriate, and matching or in-kind contributions which may be, but are not required;

(6) the qualifications of employees to be hired under the grant;

(7) the experience of the proposed project administrators in providing on- going accountability for the program.

(G) enter into contracts for the awarding of grants to private nonprofit organizations for child abuse and neglect prevention.

Section 20-7-5040. The board of trustees Governor may employ a director of the office of South Carolina First Steps to School Readiness and other staff as necessary to carry out the South Carolina First Steps to School Readiness initiative, established in Title 59, Chapter 152, and the duties and responsibilities assigned by the board. The director, with the approval of the board, shall hire such staff as is considered necessary to carry out the provisions of the initiative.

Section 20-7-5050. Until the Assets of the trust fund exceed five million dollars, not more than seventy-five percent of the amount deposited in the Trust fund each year from contributions plus all earnings from the investment of monies of the Trust fund credited during the previous fiscal year, after allowances for operating expenses, is available for disbursement upon the authorization of the board of trustees.

When the assets in the Trust fund exceed five million dollars, all credited earnings plus all future annual deposits to the Trust fund from contributions are available for disbursement upon the authorization of the board. At least six of the board members shall authorize the disbursement of funds and any other funds received by the board from private donations or appropriations from the General Assembly are subject to the provisions of Title 59, Chapter 152.

Section 20-7-5060. Funds from the receipt of contributions pursuant to Section 12-7-2416 12-6-5060 must be deposited in the trust fund for disbursement as prescribed by this article."

SECTION 4. The 1976 Code is amended by adding:

"Section 43-1-240. The State Department of Social Services in establishing priorities and funding for programs and services which impact on children and families during the first years of a child's life, within the powers and duties granted to it, must support, as appropriate, the South Carolina First Steps to School Readiness initiative, as established in Title 59, Chapter 152, at the state and local levels."

SECTION 5. The 1976 Code is amended by adding:

"Section 44-1-280. The Board and Department of Health and Environmental Control in establishing priorities and funding for programs and services which impact on children and families during the first years of a child's life, within the powers and duties granted to it, must support, as appropriate, the South Carolina First Steps to School Readiness initiative, as established in Title 59, Chapter 152, at the state and local levels."

SECTION 6. It is the intent of the General Assembly that state agencies involved in early child care and development and education and in health and support services to families with young children shall actively support the South Carolina First Steps to School Readiness initiative. In addition to those agencies answering directly to the Governor, those agencies headed by boards and commissions or constitutional officers shall use their resources to support, as appropriate, the goals of the First Steps initiative reflected in Section 59-152-20 and the long-term plans of the First Steps partnerships and to assure that relevant planning documents or processes are consistent with, and supportive of, the goals of the First Steps initiative and plans of the partnerships.

SECTION 7. Where the name of the Children's Trust Fund of South Carolina occurs in the 1976 Code or in any other provision of law, it must be construed to mean the Children's First Steps Trust Fund of South Carolina. The Code Commissioner shall change "Children's Trust Fund of South Carolina" to "Children's First Steps Trust Fund of South Carolina" in the 1976 Code as is practical and economically feasible.

SECTION 8. The provisions of Article 17, Chapter 7, Title 20 of the 1976 Code, amended in Section 3 of this act, that affect the designation of the Children's Trust Fund on state income tax forms apply to taxable years beginning after 1998.

SECTION 9. The terms of the members of the Board of Trustees of the Children's Trust Fund of South Carolina, provided for in Section 20-7-5020 of the 1976 Code prior to amendment by this act, expire on this act's effective date. Funds remaining in the Children's Trust Fund of South Carolina immediately prior to this act's effective date must be expended in accordance with the purposes provided for in Section 20-7-5010 of the 1976 Code prior to amendment by this act.

SECTION 10. This act takes effect upon approval by the Governor.

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