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TO AMEND SECTION 59-150-350, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ADMINISTRATION OF THE EDUCATION LOTTERY ACCOUNT, SO AS TO PROVIDE FOR A SCHOLARSHIP RESERVE ACCOUNT, FUNDED BY EXCESS LOTTERY PROCEEDS AND INVESTMENT EARNINGS, FOR THE EXCLUSIVE PURPOSE OF MAINTAINING FUNDING OF CERTAIN SCHOLARSHIPS, GRANTS, AND ASSISTANCES IF CERTIFIED NET LOTTERY PROCEEDS AND INVESTMENT EARNINGS ARE INSUFFICIENT TO FUND THEM, TO DEFINE "EXCESS", AND TO LIMIT THE AMOUNT OF THE RESERVE TO THREE PERCENT OF THE EDUCATION LOTTERY ACCOUNT REVENUE FOR THE LATEST COMPLETED FISCAL YEAR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-150-350 of the 1976 Code is amended by adding a subsection at the end to read:
"( )(1) There is created a Scholarship Reserve Account, separate and distinct from the general fund, for the exclusive purpose of maintaining funding of the Palmetto Fellows, LIFE, and HOPE scholarships, need-based and tuition grants and grants to teachers for advanced education, and National Guard and tuition assistance for two-year institutions if certified net lottery proceeds and investment earnings fall below a level sufficient to fund these scholarships.
(2) The account must be funded by all excess net lottery proceeds and investment earnings, in an amount not to exceed three percent of the Education Lottery Account revenue for the latest complete fiscal year. 'Excess' means the funds remaining at the end of each fiscal year, over and above the full funding of annual allocations in the general appropriation bill and any supplemental appropriation bill. These excess monies must be transferred to the State Treasurer for deposit in the separate and distinct Scholarship Reserve Account. Expenditure of the funds in the account must be allocated among the scholarships, grants, and assistances based on the respective need in the current fiscal year.
(3) Any reduction to the Lottery Reserve Account must be restored by appropriation from the Education Lottery Account to ensure that the three percent maximum required in item (2) is reached and maintained within a three-year period.
(4) This subsection does not prohibit the appropriation by the General Assembly, in a particular fiscal year, of monies from the State's general fund to ensure full funding in that year of all Palmetto Fellows and LIFE scholarships, nor does it prohibit the allocation by the General Assembly, in a particular fiscal year, of monies from the Lottery Expenditure Account to the Scholarship Reserve Account, but not to exceed the three percent limit."
SECTION 2. This act takes effect July 1, 2005.
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