South Carolina General Assembly
115th Session, 2003-2004

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Bill 203

Indicates Matter Stricken
Indicates New Matter


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

COMMITTEE REPORT

March 12, 2003

S. 203

Introduced by Senators Jackson, McConnell, Matthews, Courson, Anderson, Ford, Glover, Malloy, Patterson and Pinckney

S. Printed 3/12/03--S.

Read the first time January 16, 2003.

            

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (S. 203) to amend Title 2 of the Code of Laws of South Carolina, 1976, relating to the General Assembly, by adding Chapter 77, so as to make certain legislative findings, 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 striking all after the enacting words and inserting therein the following:

/    SECTION    1.    Title 2 of the 1976 Code is amended by adding:

"Chapter 77

South Carolina Higher Education Excellence Enhancement Program

Section 2-77-10.    The General Assembly finds that:

(1)    a significant part of the state mission in education has been to enhance excellence in higher education for low-income and educationally disadvantaged students;

(2)    private, historically black colleges and universities have played a integral role in offering higher educational access to low-income and educationally disadvantaged students who otherwise might not have been able to obtain a college education, which has resulted in a substantial public benefit;

(3)    private, historically black colleges and universities provide a unique educational opportunity for these targeted groups of students by offering flexible admission policies, low tuition rates, and small enrollments to ensure smaller class size tailored to the needs of these targeted students;

(4)    private, historically black colleges and universities are often limited in their abilities to raise funds from their respective student populations from tuition and fees because of the demographic profiles of their students and, as a result, charge tuition rates which on average are substantially lower than those charged by other private higher educational institutions in this State;

(5)    the federal government has recognized the unique ability of private, historically black colleges and universities to accomplish the important public benefit of enhancing opportunities in higher education for low-income and educationally disadvantaged students;

(6)    public educational assistance made available to the institutions that serve these targeted students provides a direct educational benefit to the students by improving the overall quality of their educational experiences by offering enhanced facilities and improved academic instruction; and

(7)    it is necessary that the State of South Carolina enable these institutions to effectively partner with the federal government to ensure the continued existence in this State of private, historically black colleges and universities, which provide a substantial public benefit to the State by enabling these targeted students to be well-educated, to move into the workforce, and to improve the quality of life in South Carolina.

Section 2-77-15.    For purposes of this chapter:

(1)    'federal funding program' means:

(a)    Section 507(c) of the Omnibus Parks and Land Management Act of 1996 (16 U.S.C. 470a note), as amended; or

(b)    Part B, Subchapter III, Chapter 28, Title 20 of the United States Code.

(2)    'historically black college and university' has the same meaning as a Part B institution as defined in Section 1061, Title 20 of the United States Code, as amended.

Section 2-77-20.    (A)    There is hereby established the South Carolina Higher Education Excellence Enhancement Program for the general purpose of enhancing the educational opportunities of low-income and educationally disadvantaged students. The program must be administered by the Commission on Higher Education. The commission must enter into annual contracts with private, historically black colleges and universities to accomplish the purposes of this program.

(B)    The program must be funded by appropriations from the Education Lottery Account in an amount provided by the General Assembly.

(C)    An institution seeking to be eligible to provide enhanced opportunities through the commission must submit an annual application to the commission. The commission must certify the eligibility of institutions seeking contracts pursuant to this section. Of the funds appropriated for this program, one-half must be allocated equally among the participating institutions. The remainder of the appropriated funds shall be awarded to eligible institutions based upon merit, through criteria developed by the Commission on Higher Education.

(D)    From the amounts allocated on an equal basis, an institution receiving an allocation of funds must first use the funds as the nonfederal match required by a federal funding program that provides funding for historic preservation or for capital improvements. In awarding funds based on merit, the commission shall give priority to those proposals that can be matched with funds from a federal funding program.

Section 2-77-30.    (A)    From amounts appropriated by the General Assembly, the commission must enter into contracts with institutions which are eligibility-certified by the commission for any of the following uses:

(1)    purchase, rental, or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes;

(2)    construction, maintenance, renovation, and improvement in classroom, library, laboratory, and other instructional facilities, including purchase or rental of telecommunications technology equipment or services;

(3)    support of faculty exchanges, faculty development, and faculty fellowships to assist in attaining advanced degrees in their fields of instruction;

(4)    academic instruction in disciplines in which African-Americans are underrepresented;

(5)    purchase of library books, periodicals, microfilm, and other educational materials, including telecommunications program materials;

(6)    tutoring, counseling, and student service programs designed to improve academic success;

(7)    funds and administrative management, and acquisition of equipment for use in strengthening funds management;

(8)    joint use of facilities, such as laboratories and libraries;

(9)    establishing or improving a development office to strengthen or improve contributions from alumni and the private sector;

(10)    establishing or enhancing a program of teacher education designed to qualify students to teach in a public elementary or secondary school in the State that must include, as part of the program, preparation for teacher certification; and

(11)    other activities proposed that contribute to carrying out the purposes of this act, and which are approved by the commission as part of the review and acceptance of the application.

(B)    Each contracting institution must keep such records as the commission prescribes, including records which fully disclose:

(1)    the amount and disposition by each recipient of the proceeds of the assistance;

(2)    the cost of the project or undertaking in connection with which the assistance is given or used;

(3)    the amount of that portion of the cost of the project or undertaking supplied by other sources; and

(4)    such other records as will facilitate an effective audit by the Commission on Higher Education.

Section 2-77-40.    Any funds paid to an institution pursuant to this chapter but not expended or used for the purposes for which the funds were paid within three years following the date of the contract awarded to an institution must be repaid to the Education Lottery Account immediately upon the expiration of the three-year period.

Section 2-77-50.    The commission must promulgate regulations and establish procedures to administer the provisions of this chapter, including, but not limited to, audits of contracting institutions."

SECTION    2.    This act takes effect upon approval by the Governor.    /

Renumber sections to conform.

Amend title to conform.

THOMAS L. MOORE for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

Minimal (Some additional costs expected but can be absorbed)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES IS:

A Cost of Federal and/or Other Funds (See Below)

EXPLANATION OF IMPACT:

The Commission on Higher Education has indicated that enactment of this legislation would have a minimal impact on the agency's budget and administrative costs could be absorbed within existing resources. The General Assembly through its annual appropriations act for the Education Lottery Act would provide funding for the grants and contracts. The amount appropriated is at the General Assembly's discretion.

SPECIAL NOTES:

The General Assembly may wish to note Article XI, Section 4 of the State Constitution.

Approved By:

Don Addy

Office of State Budget

A BILL

TO AMEND TITLE 2 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE GENERAL ASSEMBLY, BY ADDING CHAPTER 77, SO AS TO MAKE CERTAIN LEGISLATIVE FINDINGS AND TO ESTABLISH THE SOUTH CAROLINA HIGHER EDUCATION EQUALIZATION PROGRAM FOR THE PURPOSE OF REQUIRING THE COMMISSION ON HIGHER EDUCATION TO ENTER INTO CONTRACTS WITH PRIVATE, HISTORICALLY BLACK COLLEGES AND UNIVERSITIES TO BE USED FOR CERTAIN PURPOSES INTENDED TO ENHANCE THE EDUCATIONAL OPPORTUNITIES OF LOW-INCOME, EDUCATIONALLY AND SOCIALLY DISADVANTAGED STUDENTS.

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

SECTION    1.    Title 2 of the 1976 Code is amended by adding:

"Chapter 77

South Carolina Higher Education Equalization Program

Section 2-77-10.     The General Assembly finds that:

(1)    the State of South Carolina has provided financial support to private educational institutions which has resulted in a substantial public benefit;

(2)    a significant part of the state mission in education has been to attain equal opportunity in higher education for low-income, educationally and socially disadvantaged students;

(3)    private, historically black colleges and universities have played a integral role in offering higher educational access to low-income, educationally and socially disadvantaged students who otherwise might not have been able to obtain a college education;

(4)    private, historically black colleges and universities provide a unique educational opportunity for these targeted groups of students by offering flexible admission policies, low tuition rates, and small enrollments to ensure smaller class size tailored to the needs of these targeted students;

(5)    private, historically black colleges and universities are limited in their abilities to raise funds from their student populations from tuition and fees because of the demographic profiles of their students and, as a result charge, tuition rates which on average are substantially lower than those charged by other private educational institutions in this State;

(6)    the federal government has recognized the unique ability of private, historically black colleges and universities to accomplish the important public benefit of enhancing equal opportunity in higher education for low-income, educationally and socially disadvantaged students; and

(7)    public educational assistance made available to the institutions that serve these targeted students provides a direct educational benefit to the students by improving the overall quality of their educational experiences by offering enhanced facilities and improved academic instruction; and

(8)    it is necessary that the State of South Carolina partner with the federal government to ensure the continued existence in this State of private, historically black colleges and universities, which provide a substantial public benefit to the State by increasing the number of these targeted students who are better equipped to move into the workforce and with more diverse skills than they would otherwise been able to obtain.

Section 2-77-20.     (A)    There is hereby established the South Carolina Higher Education Equalization Program for the general purpose of enhancing the educational opportunities of low-income, educationally and socially disadvantaged students. The program must be administered by the Commission on Higher Education. The commission must enter into annual contracts with private, historically black colleges and universities to accomplish the purposes of this program.

(B)    The program must be funded annually by appropriations from the Education Lottery Account in an amount provided by the General Assembly.

(C)    An institution seeking to be eligible to provide contractual assistance to the commission must submit an annual application to the commission. The commission must certify the eligibility of institutions seeking contracts pursuant to this section. The amount of funding provided by the commission under a contract must be equal for each certified institution.

(D)    For purposes of this section, historically black college and university has same the meaning as a Part B institution as defined in Section 1061, Title 20 of the United States Code, as amended.

Section 2-77-30.     (A)    From amounts made available by the General Assembly, the commission must make grants to institutions which have eligibility certified by the commission for any of the following uses:

(1)    purchase, rental, or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes;

(2)    construction, maintenance, renovation, and improvement in classroom, library, laboratory, and other instructional facilities, including purchase or rental of telecommunications technology equipment or services;

(3)    support of faculty exchanges, faculty development, and faculty fellowships to assist in attaining advanced degrees in their fields of instruction;

(4)    academic instruction in disciplines in which African-Americans are underrepresented;

(5)    purchase of library books, periodicals, microfilm, and other educational materials, including telecommunications program materials;

(6)    tutoring, counseling, and student service programs designed to improve academic success;

(7)    funds and administrative management, and acquisition of equipment for use in strengthening funds management;

(8)    joint use of facilities, such as laboratories and libraries;

(9)    establishing or improving a development office to strengthen or improve contributions from alumni and the private sector;

(10)    establishing or enhancing a program of teacher education designed to qualify students to teach in a public elementary or secondary school in the State that must include, as part of the program, preparation for teacher certification;

(11)    establishing community outreach programs to encourage elementary and secondary students to develop the academic skills and the interest to pursue post-secondary education; and

(12)    other activities proposed that contribute to carrying out the purposes of this act; and which are approved by the commission as part of the review and acceptance of such application.

(B)    Each contracting institution must keep such records as the commission prescribes, including records which fully disclose:

(1)    the amount and disposition by each recipient of the proceeds of the assistance;

(2)    the cost of the project or undertaking in connection with which the assistance is given or used;

(3)    the amount of that portion of the cost of the project or undertaking supplied by other sources; and

(4)    such other records as will facilitate an effective audit.

Section 2-77-40.     Any funds paid to an institution pursuant to this chapter but not expended or used for the purposes for which the funds were paid within ten years following the date of the initial contract awarded to an institution must be repaid to the general fund immediately upon the expiration of the ten-year period.

Section 2-77-50.     The commission must promulgate regulations and establish procedures to administer the provisions of this chapter."

SECTION    2.    This act takes effect upon approval by the Governor.

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