South Carolina General Assembly
113th Session, 1999-2000

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Bill 3620


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AMENDED

May 11, 1999

H. 3620

Introduced by Reps. J. Smith, Allen, Bailey, Bales, Battle, Bowers, Breeland, J. Brown, T. Brown, Carnell, Cobb-Hunter, Emory, Gourdine, Harris, Hayes, M. Hines, Howard, Inabinett, Jennings, Kennedy, Lee, Lourie, Mack, Maddox, McCraw, M. McLeod, W. McLeod, McMahand, Miller, Moody-Lawrence, Neal, Neilson, Ott, Phillips, Pinckney, Rhoad, Sheheen, Whipper, Wilder, Wilkes, Lloyd, Scott and J. Hines

S. Printed 5/11/99--S.

Read the first time May 4, 1999.

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;

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

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

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

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

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

(f) 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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