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AS PASSED BY THE SENATE
February 28, 2002
H. 3307
Introduced by Reps. Scott, Knotts, Jennings, Carnell, Govan, Whatley, Dantzler, Lee, Miller, Snow, Breeland, Hosey, Rutherford, J.E. Smith, Rivers, Weeks and Rhoad
S. Printed 2/28/02-S.
Read the first time May 9, 2001.
TO APPROPRIATE FISCAL YEAR 2002-2003 CERTIFIED NET LOTTERY PROCEEDS AND INVESTMENT EARNINGS FOR THE FISCAL YEAR BEGINNING JULY 1, 2002, IN ACCORDANCE WITH THE PROVISIONS OF ACT 59 OF 2001; TO APPROPRIATE FISCAL YEAR 2002-2003 NET LOTTERY PROCEEDS AND INVESTMENT EARNINGS IN EXCESS OF THE FISCAL YEAR 2002-2003 CERTIFIED NET LOTTERY PROCEEDS AND INVESTMENT EARNINGS; TO APPROPRIATE FISCAL YEAR 2001-2002 CERTIFIED NET LOTTERY PROCEEDS AND INVESTMENT EARNINGS; TO APPROPRIATE FISCAL YEAR 2001-2002 NET LOTTERY PROCEEDS AND INVESTMENT EARNINGS IN EXCESS OF THE FISCAL YEAR 2001-2002 CERTIFIED NET LOTTERY PROCEEDS AND INVESTMENT EARNINGS; TO APPROPRIATE UNCLAIMED PRIZE MONEY; AND TO REGULATE THE EXPENDITURE OF SUCH FUNDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Fiscal year 2002-2003 certified net lottery proceeds and investment earnings of $127,000,000 are appropriated as follows:
(A) Commission On Higher Education
(1) Free Tuition Grants for Technical
Colleges and Two-Year Institutions $48,213,838
(2) LIFE Scholarships $46,349,681
(3) HOPE Scholarships $8,736,000
(4) Palmetto Fellows Scholarships $7,080,000
(5) Endowed Professorship Chairs $9,500,000
(6) Need-Based Grants $2,120,481
(A.1) Any unexpended funds appropriated for Endowed Professorship Chairs may be carried forward into fiscal year 2003-2004 and expended for the same purposes.
(A.2) For fiscal year 2002-2003 the Higher Education Price Index of 4.8% must be used to determine the LIFE Scholarship and free tuition amounts.
(A.3) The Commission on Higher Education is authorized to temporarily transfer funds between appropriated line items and between recurring and nonrecurring funds in order to ensure the timely receipt of scholarships and free tuition.
(B) State Department of Education
(1) School Buses $5,000,000
TOTAL $127,000,000
SECTION 1. Fiscal year 2002-2003 net lottery proceeds and investment earnings in excess of the certified net lottery proceeds and investment earnings of $127,000,000 are appropriated as follows, to the extent that funds are available:
(A) Commission On Higher Education
(1) Need-Based Grants $2,000,000
(2) National Guard Tuition Repayment Program $1,500,000
(3) Grants For Teachers $2,000,000
(4) Endowed Professorship Chairs $4,500,000
(5) College and University Technology
Grant Program $6,000,000
(6) Research and Technology
Grant - South Carolina State University $3,000,000
(A.1) Funds appropriated herein for need-based grants shall not be used to calculate the amount awarded for free tuition grants.
(A.2) Funds appropriated for Research and Technology Grant - South Carolina State must be used to support basic and applied research in information and technology outreach opportunities for South Carolina's rural and urban citizens.
(A.3) College and University Technology Grant Program funds must be awarded to the branches of the University of South Carolina and public four-year universities, excluding the University of South Carolina-Columbia, Clemson, and the Medical University of South Carolina. Grants are to be awarded to institutions with grant proposals supporting the development of technology and/or technology infrastructure. The review process, to include the awarding of grants, is to be determined by the Commission on Higher Education. Any unexpended funds may be carried forward into fiscal year 2002-2003 and expended for the same purposes in the following fiscal year.
(B) State Board for Technical and Comprehensive Education
(1) Technology Grant Program $1,500,000
(B.1) Technology Grant Program funds are to be used for technology upgrades across technical college system for support and development of technology.
(C) Higher Education Tuition Grants Commission
(1) Tuition Grants $2,500,000
TOTAL $23,000,000
SECTION 1. Fiscal Year 2001-2002 certified net lottery proceeds and investment earnings of $67,200,000 are appropriated as follows:
(A) Commission on Higher Education
(1) College and University Technology
Grant Program $4,500,000
(2) Endowed Professorship Chairs $13,644,789
(3) Historically Black Colleges and Universities $3,000,000
(A.1) Any unexpended funds appropriated for Endowed Professorship Chairs may be carried forward into fiscal year 2002-2003 and expended for the same purposes.
(A.2) College and University Technology Grant Program funds must be awarded to the branches of the University of South Carolina and public four-year universities, excluding the University of South Carolina-Columbia, Clemson, and the Medical University of South Carolina. Grants must be awarded to institutions with grant proposals supporting the development of technology and/or technology infrastructure. The review process, to include the awarding of grants, is to be determined by the Commission on Higher Education. Any unexpended funds may be carried forward into fiscal year 2002-2003 and expended for the same purposes in the following fiscal year.
(A.3) appropriated for South Carolina's private historically black colleges and universities, as defined in 20 U.S. Code Section 1061, amended, in an equal amount to each institution to be used by the institutions for construction and renovation projects.
(B) State Board for Technical and Comprehensive Education
(1) Technology Grant Program $1,500,000
(B.1) Technology Grant Program funds are to be used for technology upgrades across the technical college system for the support and development of technology.
(C) State Department of Education
(1) Education Accountability Act of
1998 $7,844,211
(2) K-12 School Technology $5,000,000
(3) School-based Pilot Programs $1,000,000
(4) School Buses $15,000,000
(C.1) Funds appropriated for K-12 technology must be allocated as provided for in Section 59-150-390 of the 1976 Code, as amended.
(C.2) School-based pilot programs must include the deregulation of any school district with an overall absolute or improved designation of average or better when requested by the district.
(C.3) Of the funds appropriated for school buses, $600,000 shall be transferred to the School for the Deaf and Blind for the purchase of buses.
(D) Higher Education Tuition Grants Commission
(1) Tuition Grants $1,211,000
(E) South Carolina State Library
(1) Public Library State Aid $1,500,000
(F) South Carolina Educational Television Commission
(1) Digitalization $13,000,000
TOTAL $67,200,000
SECTION 1. Fiscal Year 2001-2002 net lottery proceeds and investment earnings in excess of certified net lottery proceeds and investment earnings of $67,200,000 are appropriated to the following programs in whole or in part to the extent that funds are available and in the priority order herein established:
(A) State Department of Education
(1) Education Accountability Act of 1998 $13,444,789
(A.1) Funds appropriated for the Education Accountability Act of 1998 must be used first to fully fund teacher specialists. Any funds remaining are to be used for retraining grants, external review teams, principal specialists and/or the Palmetto Gold and Silver Awards Program.
(B) South Carolina Educational Television Commission
(1) Digitalization $5,500,000
(C) State Department of Education
(1) School Buses $10,000,000
(D) Commission on Higher Education
(1) Endowed Professorship Chairs $2,355,211
(E) State Department of Education
(1) Homework Centers $1,500,000
TOTAL $32,800,000
SECTION 1. Fiscal Year 2001-2002 and 2002-2003 unclaimed prize money of $7,000,000 is appropriated as follows:
(A) State Department of Education
(1) School Buses $7,000,000
TOTAL $7,000,000
(B) The first $1,000,000 of revenue in excess of $7,000,000 must be appropriated to the Budget and Control Board to contract for services assisting in the prevention and treatment of gambling disorders as specified in Section 59-150-230(I). Any additional funds must be appropriated to the Department of Education for the purchase of school buses.
SECTION 1. Unless otherwise provided, if expenditures for any of the educational purposes or programs enumerated in PARTS I, II, and III are less than the amounts authorized and appropriated, the unexpended portion of the authorized appropriation must be remitted to the State Treasurer to credit to the Education Lottery Account and is authorized in priority order for the following purposes:
(1) to fully fund items as appropriated in PART IV of this act;
(2) to the Commission on Higher Education to offset any lottery revenue shortfall in Hope and Palmetto Fellows Scholarships and free tuition at the technical and two-year colleges; and
(3) to be carried forward and appropriated by the General Assembly for fiscal year 2003-2004.
SECTION 2. If revenue received is less than the amount appropriated in PARTS I, II, or III, programs in the PART realizing the deficit shall be reduced on a pro rata basis.
The Code Commissioner is directed to include all permanent general laws in this Part in the next edition of the Code of Laws of South Carolina, 1976, and all supplements to the Code.
TO AMEND SECTION 59-149-10(D) AND (E), CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIFE SCHOLARSHIPS, BY ADDING A THREE HUNDRED DOLLAR ANNUAL BOOK ALLOWANCE AT THE TECHNICAL AND TWO-YEAR COLLEGES; BY SETTING THE AMOUNT OF THE LIFE SCHOLARSHIP AT FOUR-YEAR PUBLIC AND PRIVATE COLLEGES AND UNIVERSITIES AT AN AMOUNT NOT TO EXCEED FOUR THOUSAND SEVEN HUNDRED DOLLARS PLUS THREE HUNDRED DOLLARS FOR BOOKS; AND BY DELETING THE WAIVER OF THE REQUIREMENT THAT ONLY STUDENTS GRADUATING AFTER MAY 1995 ARE ELIGIBLE.
Section 59-149-10(D) and (E) of the 1976 Code, as amended, is amended to read:
"(D) Beginning with school year 2000-2001, the annual amount of a LIFE Scholarship for eligible resident students attending a four-year public or independent institution as defined herein is increased from the cost of attendance up to a maximum of two thousand dollars a year to the cost of attendance up to a maximum of three thousand dollars a year, and the annual amount of a LIFE Scholarship for eligible resident students attending a two-year public or independent institution as defined herein which includes state technical colleges is increased from the cost of attendance up to a maximum of one thousand dollars a year to the cost of tuition for thirty credit hours a year or its equivalent, plus a three hundred dollar per year book allowance. Tuition for this purpose means the amount charged for registering for credit hours of instruction and shall not include other fees, charges, or costs of textbooks.
(E)(1) Beginning with school year 2002-2003, the annual amount of a LIFE Scholarship for eligible resident students attending a four-year institution as defined in this chapter is increased to the cost of tuition, not to exceed four thousand seven hundred dollars, for thirty credit hours a year or its equivalent plus a three hundred dollar per year book allowance. The cost of tuition for the purposes of awarding these scholarships shall be each institution's previous year's tuition increased by the Higher Education Price Index, as adopted by the Commission on Higher Education. Tuition for this purpose means the amount charged for registering for credit hours of instruction and shall not include other fees, charges, or costs of textbooks except for the referenced three hundred dollar book allowance.
(2) Beginning with school year 2002-2003, the annual amount of a LIFE Scholarship for eligible resident students attending a four-year independent institution must be the cost of attendance up to a maximum of the average annual cost of tuition, as limited in subsection (E)(1) of this section, at the state's four-year public institutions of higher learning in the corresponding academic year.
(3) Beginning with the school year 2002-2003, the requirement that high school completion be accomplished on or after May 1995, for eligibility for the LIFE Scholarship is waived."
TO AMEND SECTION 59-149-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, TO DELETE THE STIPULATION THAT STUDENTS GRADUATE FROM HIGH SCHOOL AFTER MAY OF 1995 IN ORDER TO BE ELIGIBLE FOR THE LIFE SCHOLARSHIP AND TO DELETE LANGUAGE PERTAINING TO RETAINING AND REGAINING THE SCHOLARSHIP.
Section 59-149-50 of the 1976 Code, as amended, is amended to read:
"Section 59-149-50. (A) To be eligible for a LIFE Scholarship, a student must be either a member of a class graduating from a high school located in this State on or after May, 1995, a home school student who has successfully completed a high school home school program in this State in the manner required by law on or after May, 1995, or a student graduating from a preparatory high school outside this State on or after May, 1995, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent, and these students must also meet the requirements of subsection (B). In addition, beginning with the 1998-99 school year for those students who graduate from high school on or after May, 1998, the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale, and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better beginning with school year 2000-2001, and 1100 or better beginning with school year 2002-2003; provided that if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B).
(B) Students receiving In order to retain a LIFE Scholarship to retain it and or to receive a LIFE Scholarship after the freshman year, students currently enrolled in an eligible institution to receive such a scholarship must earn a 3.0 cumulative grade point average on a 4.0 scale each year and earn at least thirty credit hours each year for the maximum of semesters permitted at that institution by Section 59-149-60.
(C) Students who were LIFE Scholarship recipients seeking a degree at such a public or independent institution of this State during their freshman or other year who failed to earn a cumulative 3.0 at the end of the term they attempted the requisite number of hours required by subsection (B) may regain eligibility if their cumulative grade average is a 3.0 at the end of the term they have attempted at least sixty hours if they are a sophomore or ninety hours if they are a junior.
(D) Beginning with school year 2002-2003, an entering freshman at a four-year institution to be eligible for a LIFE Scholarship in addition to the other requirements of this chapter shall must meet two of the following three criteria:
(1) have the grade point average required by this section;
(2) have the Scholastic Aptitude Test (SAT) or equivalent ACT score required by this section; or
(3) be in the top thirty percent of his high school graduating class.
For home school students and students whose high school graduating class is less than fifty students, the Commission on Higher Education may define alternative criteria for students to meet the requirement of item (3).
After receipt of a LIFE Scholarship by an entering freshman beginning with school year 2002-2003, a student shall meet the criteria established in this chapter to retain or regain the scholarship.
For an exceptionally gifted student who is accepted into college without having attended high school, the Commission on Higher Education shall must define alternative criteria for the student to qualify for a LIFE Scholarship."
TO AMEND SECTION 59-149-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY DELETING THE REQUIREMENT THAT STUDENTS ENROLL IN AN ELIGIBLE INSTITUTION WITHIN TWO YEARS AFTER HIGH SCHOOL GRADUATION IN ORDER TO BE ELIGIBLE FOR THE LIFE SCHOLARSHIP.
Section 59-149-60 of the 1976 Code is amended to read:
"Section 59-149-60. The student may receive a LIFE Scholarship for not more than ten semesters for a five-year degree program, eight semesters for a four-year degree program, or four semesters for a two-year degree program. In addition, students in order to be eligible for these scholarships must enroll in an eligible institution within two years of graduating from high school."
TO AMEND SECTION 59-150-360, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY PROHIBITING A TECHNICAL COLLEGE OR TWO-YEAR COLLEGE STUDENT FROM RECEIVING A LIFE SCHOLARSHIP IF RECEIVING FREE TUITION; TO CLARIFY THE RESPONSIBILITY FOR THE DEVELOPMENT OF REGULATIONS AS THEY PERTAIN TO FREE TUITION AT THE TECHNICAL AND TWO-YEAR COLLEGES; BY AMENDING THE DEFINITION OF TUITION; AND PROVIDING FOR THE DISTRIBUTION OF NEED-BASED FUNDS AND THE GRANTING OF FREE TUITION.
Section 59-150-360 of the 1976 Code is amended to read:
"Section 59-150-360. (A) A person who qualifies for in-state tuition rates pursuant to Chapter 112, Title 59 may attend, tuition-free, based on fiscal year 2001-2002 tuition at each public technical and two-year college increased by the Higher Education Price Index, as adopted by the Commission on Higher Education, a technical college of this State or a public two-year institution of higher learning. A person who qualifies for in-state tuition rates pursuant to this title may attend an independent two-year institution of higher learning and receive lottery tuition assistance each year up to the maximum highest 2001-2002 two-year in-state tuition rate's increase annually by the Higher Education Price Index at a two-year public institution. In order to qualify as a first time entering freshman and before attempting twenty-four academic credit hours, a student must:
(1) be a South Carolina resident for a minimum of one year;
(2) be enrolled and maintain six credit hours each semester in a certificate, degree, or diploma program;
(3) make reasonable progress toward completion of the requirements for the certificate, degree, or diploma program; and
(4) complete a Free Application for Federal Student Aid (FAFSA) application; and
(5) not be the recipient of a LIFE Scholarship.
The South Carolina State Board for Technical and Comprehensive Education or the Commission on Higher Education, as appropriate, may provide regulations for the implementation of this section. Regulations for implementation of this section are the responsibility of the South Carolina State Board for Technical and Comprehensive Education, for the technical college system, and the Commission on Higher Education, for the two-year public and private institutions. These regulations must be developed in a coordinated effort and are to be interchangeable between each of the institutions affected.
(B) For purposes of this chapter, a 'public or independent institution' which a student may attend to receive a scholarship as provided in this chapter includes South Carolina two-year public institutions, as defined in Section 59-103-5, including branch campuses and two-year independent institutions, as defined in Section 59-113-50.
(C) Institutions whose sole purpose is religious or theological training, or the granting of professional degrees, do not meet the definition of 'public or independent institution' for purposes of this chapter.
(D) 'Tuition' for purposes of this section means the amount charged for registering for credit hours of instruction and academic fees less all federal grants and need-based grants, except as provided for in subsection (I) and does not include other fees, charges, or costs of textbooks. The financial need of the student shall be the determining factor in the distribution of need-based grants and the amount received toward tuition.
(E) Notwithstanding subsection (D), technical colleges and public two-year institutions may charge students an additional amount for academic or related fees not to exceed eight dollars per credit hour for academic fees, to offset any shortfall in lottery funding for free tuition , without increasing. This will not increase the fee reduction required by the Commission on Higher Education.
(F) Each county must maintain its level of funding for technical colleges. If any county fails to maintain this level of funding for its technical college, the college may add, for students who reside in that county, an impact fee sufficient to offset the reduction in county funds.
(G) In order for a student to retain eligibility after attempting twenty-four academic credit hours the student must have earned a grade point average of 2.0 or better on a 4.0 grading scale.
(H) Students shall not be eligible to receive free tuition for more than one certificate, diploma, or degree within any five-year period.
(I) For the purposes of this section, the percentage of each student's need-based grant that is attributable to net lottery proceeds must not be deducted from tuition."
TO AMEND SECTION 59-150-370, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY INCREASING THE AMOUNT OF THE HOPE SCHOLARSHIP TO FOUR THOUSAND DOLLARS AND TO SPECIFY THAT IT IS FOR THE FIRST YEAR OF ATTENDANCE ONLY AND FOR STUDENTS NOT RECEIVING THE LIFE OR PALMETTO FELLOWS SCHOLARSHIP; AND TO DEFINE THE QUALIFICATIONS FOR THE HOPE SCHOLARSHIP AS THE GRADE POINT AVERAGE REQUIRED FOR THE LIFE SCHOLARSHIP WITHOUT A SAT SCORE OR CLASS RANK REQUIREMENT.
Section 59-150-370 of the 1976 Code, as amended, is amended to read:
"Section 59-150-370. (A) SC HOPE Scholarships are hereby established and are provided by the State. These scholarships are authorized in an amount of up to $4,000 dollars and are to cover the cost of attendance, as defined by the Commission on Higher Education by regulation, up to a maximum of two thousand dollars per year, to eligible resident students attending four-year public and independent institutions as defined in subsection (B), during the first year of attendance only, to an eligible student attending a four-year public or independent institution as defined in subsection (B) who does not also qualify for a LIFE Scholarship or a Palmetto Fellows Scholarship.
(B) For purposes of this chapter, a 'public or independent institution' that a student may attend to receive an SC HOPE Scholarship includes the following:
(1) a South Carolina four-year public institution as defined in Section 59-103-5 and a four-year independent institution as defined in Section 59-113-50;
(2) a public or independent bachelor's level institution chartered before 1962 whose major campus and headquarters are located within South Carolina; or an independent bachelor's level institution which is accredited by the Southern Association of Colleges and Secondary Schools; or an independent bachelor's level institution which is accredited by the New England Association of Colleges and Schools. Institutions whose sole purpose is religious or theological training, or the granting of professional degrees do not meet the definition of 'public or independent institution' for purposes of this chapter.
(C) A student is eligible to receive a SC HOPE Scholarship if he meets the criteria for receiving and maintaining the Legislative Incentives for Future Excellence (LIFE) Scholarship except that a minimum Scholastic Aptitude Test (SAT) or ACT score and requisite class rank are is not required for eligibility for the SC HOPE Scholarship. These SC HOPE Scholarships must be granted and awarded as provided in this section.
(D) These SC HOPE Scholarships in combination with all other grants and scholarships must not exceed the cost of attendance at the particular institutions referenced in subsection (B).
(E) The Commission on Higher Education must promulgate regulations and establish procedures to administer the provisions of this section.
(F) All institutions participating in the SC HOPE Scholarship Program must report their enrollment and other relevant data as solicited by the Commission on Higher Education which may audit these institutions to ensure compliance with this provision."
TO AMEND SECTION 59-104-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY DESIGNATING THE AMOUNT OF THE PALMETTO FELLOWS SCHOLARSHIP AS SEVEN THOUSAND FIVE HUNDRED DOLLARS AND LIMITING THE AMOUNT OF FUNDS RECEIVED TO THAT OF THE COST OF ATTENDANCE.
Section 59-104-20 of the 1976 Code, as amended, is amended to read:
"Section 59-104-20. The Palmetto Fellows Scholarship Program is established to foster scholarship among the state's post-secondary students and retain outstanding South Carolina high school graduates in the State through awards based on scholarship and achievement. Measures must be taken to ensure equitable minority participation in this program. Recipients of these scholarships are designated Palmetto Fellows. Each Palmetto Fellow shall receive a scholarship in an amount designated by the Commission on Higher Education not to exceed seven thousand five hundred dollars. These scholarships in combination with all other grants and scholarships shall not exceed the cost of attendance at the institution attended. The commission shall promulgate regulations and establish procedures to administer the program and request annual state appropriations for the program.
Students, either new or continuing, must not have been adjudicated delinquent or been convicted or pled guilty or nolo contendere to any felonies or any alcohol or drug-related offenses under the laws of this or any other state or under the laws of the United States in order to be eligible for a Palmetto Fellows Scholarship, except that a high school or college student otherwise qualified who has been adjudicated delinquent or has been convicted or pled guilty or nolo contendere to an alcohol or drug-related misdemeanor offense nevertheless shall be eligible or continue to be eligible for such scholarships after the expiration of one academic year from the date of the adjudication, conviction, or plea.
Of the funds made available for higher education Palmetto Fellows scholarships for any year, a percentage thereof must be allocated for students attending South Carolina independent colleges of higher learning in this State. This percentage must be equivalent to the percentage of the independent colleges' share of the total South Carolina resident undergraduate full-time enrollment (FTE) of all public and independent higher education institutions in South Carolina based on the previous year's data as determined by the Commission on Higher Education and the South Carolina Tuition Grants Commission."
TO AMEND TITLE 2 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, AS AMENDED, BY ADDING CHAPTER 75, SO AS TO ENACT THE "SOUTH CAROLINA RESEARCH CENTERS OF ECONOMIC EXCELLENCE ACT", CREATING AN INCENTIVES PROGRAM FOR THE SENIOR RESEARCH UNIVERSITIES OF SOUTH CAROLINA CONSISTING OF CLEMSON UNIVERSITY, THE MEDICAL UNIVERSITY OF SOUTH CAROLINA, AND THE UNIVERSITY OF SOUTH CAROLINA, THROUGH A MATCHING PROGRAM TO FUND ENDOWMENTS FOR PROFESSORSHIPS IN RESEARCH TARGETED TO CREATE WELL-PAYING JOBS AND ENHANCED ECONOMIC OPPORTUNITIES FOR THE PEOPLE OF SOUTH CAROLINA.
Chapter 75, Title 2 of the 1976 Code, as amended, is amended by adding:
Section 2-75-05. (A) This chapter is known and may be cited as the "South Carolina Research Centers of Economic Excellence Act".
(B) The General Assembly finds:
(1) it is in the public interest to create incentives for the senior research universities of South Carolina consisting of Clemson University, the Medical University of South Carolina, and the University of South Carolina to raise capital from the private sector to fund endowments for professorships in research areas targeted to create well-paying jobs and enhanced economic opportunities for the people of South Carolina;
(2) these endowed professorships should be used to recruit and maintain leading scientists and engineers at the senior research universities of South Carolina for the purposes of developing and leveraging the research capabilities of the universities for the creation of well-paying jobs and enhanced economic opportunities in knowledge-based industries for all South Carolinians;
(3) in communities across the United States in which better paying jobs and enhanced economic development in knowledge-based industries has flourished, the local or state government has created incentives and made a long-term commitment to public and private funding for a significant number of endowments for professorships in targeted knowledge-based industries;
(4) the South Carolina Education Lottery provides a source of funding and an incentive for the senior research universities to raise, in dollar-for-dollar matching amounts, sums from private sources sufficient to create endowed professorships;
(5) these endowed professorships should be awarded to the senior research universities through a competitive application process, provided that the competitive process must encourage the senior research universities to submit cooperative applications with one another as well as in cooperation with other institutions of higher education; and
(6) these endowed professorships, funded equally from the South Carolina Education Lottery and from other private sources, provide a foundation for the creation of centers of economic excellence.
Section 2-75-10. There is created the Research Centers of Excellence Review Board. The board shall consist of nine members. Of the nine members, three must be appointed by the Governor, three must be appointed by the President Pro Tempore of the Senate, and three must be appointed by the Speaker of the House of Representatives. The terms of members are three years, and members are eligible to be appointed for no more than two additional terms. Of the members initially appointed by the Governor, the President Pro Tempore, and the Speaker of the House, one shall be appointed for a term of one year, one for a term of two years, and one for a term of three years, the initial term of each member to be designated by the Governor, President Pro Tempore, and Speaker of the House when making the appointments. The Governor, the President Pro Tempore, and the Speaker of the House shall appoint persons with substantial experience in business, law, accounting, technology, manufacturing, engineering, or other professions and experience which provide an understanding of the purposes of this chapter. The board shall be responsible for the awarding of matching funds as provided in Section 2-75-60 and for oversight and operation of the fund created by Section 2-75-30. The review board must provide an annual report to the Budget and Control Board, which shall include an audit performed by an independent auditor.
Section 2-75-20. The presidents of the senior research universities shall serve as ex officio nonvoting members of the board.
Section 2-75-30. There is created the Centers of Excellence Matching Endowment. The endowment must be funded annually by appropriations from the South Carolina Education Lottery Account in an aggregate amount not to exceed $200,000,000 by 2010. The fund must be managed by the State Treasurer, subject to awards from the endowment as provided in this chapter.
Section 2-75-40. The senior research universities, individually, in conjunction with one or more other senior research universities or with other South Carolina higher education institutions, may make application for awards from the endowment as provided in this chapter.
Section 2-75-50. An application for an award from the endowment shall:
(1) provide to the board documentation of private matching funds, on hand, in an amount equal to the amount for which application is made;
(2) provide to the board documentation that all matching funds have been committed and raised exclusively from sources other than South Carolina tax dollars, and that the funds have been committed and raised after January 1, 2002;
(3) be in an amount of not less than two million dollars and not more than five million dollars;
(4) document that the application has significant potential to provide for enhanced economic development for the citizens of South Carolina in a specified knowledge-based industry or field of commerce; and
(5) provide specific partnering activities with other institutions, businesses, or the community.
Section 2-75-60. Upon a determination by the board that the provisions of Section 2-75-50 have been met, the board must appoint a panel of experts chosen from outside South Carolina for their expertise in the respective research field to review the application. The members appointed to the panel shall have no affiliation with the senior research universities. The panel will convene in the State to review the proposals and to conduct site visits to ensure that appropriate research infrastructure exists at the applying university. The panel shall make a report and recommendation to the board as to the merits of the application not more than ninety days after submission to the panel. The board shall then make a determination as to whether or not to award the matching funds and the amount of the award.
Section 2-75-70. Staff and support for the operations of the board and the panels must be provided by the Commission on Higher Education. The Commission on Higher Education shall approve all necessary funds for the prudent operation of the board, including per diem expenses of board members and for the costs and expenses of the panel members. The expenditures authorized by this section must be provided from the fund created by Section 2-75-30 upon approval by the commission.
Section 2-75-80. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this section, the General Assembly hereby declaring that it would have passed this section, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective."
TO AMEND SECTION 59-150-350(D), CODE OF LAWS OF SOUTH CAROLINA, 1976, AS AMENDED, TO INCLUDE THE PURCHASE OF SCHOOL BUSES AND EDUCATIONAL TELEVISION DIGITALIZATION AS ITEMS THAT MUST BE FUNDED WITH NET LOTTERY PROCEEDS.
Section 59-150-350(D) of the 1976 Code, as amended, is amended to read:
"(D) At the beginning of the first fiscal year after the state lottery becomes operational, the Comptroller General shall certify the amount of net proceeds including investment earnings on the net proceeds credited to and accrued in the Education Lottery Account during the preceding fiscal year. The sum of certified net proceeds and investment earnings must be designated as annual lottery proceeds. Appropriations from the Education Lottery Account must be allocated only for educational purposes and educational programs by the General Assembly in its annual general appropriations bill or any bill appropriating monies for previous or current fiscal years. Funds made available from the Education Lottery Account must be used to provide Palmetto Fellows Scholarships to all eligible applicants, to provide LIFE Scholarships for eligible resident students attending four-year public institutions in those amounts provided by law; up to one percent of net proceeds to the South Carolina State Library for public library state aid, to be distributed to county public libraries on a per capita basis and to be used for educational technology delivery, upgrade, and maintenance; to the Commission on Higher Education for free tuition at state technical colleges and two-year public institutions; for the SC HOPE Scholarship Program; to the Department of Education to be allocated to K-12 school technology; to the Department of Education for school-based grants for pilot programs, to include programs providing deregulation as requested by school districts with an overall absolute or improved designation of average or better, with first priority given to schools reported as average, below average, or unsatisfactory in accordance with the Education Accountability Act; to the Department of Education to fund homework centers, and these funds must be allocated to the local school districts based on a per pupil basis and may be used for salaries for certified teachers and for transportation costs, provided that priority in the distribution of funds must be given to schools designated as below average or unsatisfactory in accordance with the Education Accountability Act; to the Commission on Higher Education for higher education assistance, including need-based grants, grants to teachers for advanced education with priority to annual grants earmarked for teachers working toward their masters' degree or advanced education in their areas of certification, or both; for the National Guard Tuition Repayment Program; and funding for elementary and secondary public education as determined pursuant to the Education Accountability Act of 1998 and education improvement legislation enacted into law after the effective date of this chapter; new programs enacted by the General Assembly for public institutions of higher learning, including public four-year colleges and universities and their branches and two-year colleges, as defined in Section 59-103-5, and state technical colleges, which programs may include the creation of endowed chairs at the state's universities, with an emphasis in the areas of, but not limited to, engineering, computer science, and the sciences; to the State Department of Education for the purchase of school buses; to the South Carolina Educational Television Commission for digitalization; and to the Commission on Higher Education to administer a construction and renovation fund for the historically black colleges and universities. and Youth Education Scholarships of up to and not to exceed one thousand dollars, to be determined in the annual general appropriations bill to resident parents of a four-year-old who attains the age of four years by September first of the school year the scholarship is received and who attends a public or private, for profit or nonprofit kindergarten, preschool, home school, or child development center program provided in this State. The scholarship is payable from the lottery proceeds through the Department of Education directly to the school in the name of the attending child after the department confirms that the program meets the following criteria that include, but are not limited to, language and literacy programs that help the child understand and tell stories, recognize pictures and words, learn the alphabet, and understand that writing is communication; math concepts that teach the child to count and sort objects into groups, recognize shapes, and make comparisons of size, shape, length, and weight; science concepts that teach the child to explore the natural environment, observe seasonal changes, communicate observations, and use tools to measure; art concepts that help the child express ideas and thoughts in creative ways, paint, draw, and sculpt, listen to music and sing songs, and recognize colors; and physical development activities that help the child move with balance and coordination, participate in indoor and outdoor physical activity, and use writing tools, puzzles, scissors, blocks, clay, and computers. The proportion of total recurring general fund and special fund revenues of the State expended for the total of public elementary, secondary, and higher education allocations in any fiscal year must not be less than the proportions in the fiscal year immediately before the fiscal year in which education revenues are first received from a state lottery, and must not be reduced or supplanted later by revenues received from a state lottery."
SECTION 1. All parts of this act take effect upon approval by the Governor.
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