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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 2 TO CHAPTER 101 OF TITLE 59, RELATING TO INSTITUTIONS OF HIGHER LEARNING, SO AS TO PROVIDE THAT THESE INSTITUTIONS OF HIGHER LEARNING MAY SPEND FEDERAL AND OTHER NONSTATE APPROPRIATED SOURCES OF REVENUE TO PROVIDE LUMP-SUM BONUSES, TO PROVIDE THAT THESE INSTITUTIONS MAY OFFER EDUCATIONAL FEE WAIVERS TO NO MORE THAN FOUR PERCENT OF THE TOTAL STUDENT BODY, TO PROVIDE THAT THESE INSTITUTIONS MAY ESTABLISH RESEARCH GRANT POSITIONS FUNDED BY CERTAIN GRANTS, TO PROVIDE THE CONDITIONS FOR THE ESTABLISHMENT OF THESE POSITIONS, TO PROVIDE THAT THESE INSTITUTIONS MAY OFFER AND FUND, FROM ANY SOURCE OF REVENUE, HEALTH INSURANCE TO FULL-TIME GRADUATE ASSISTANTS, TO PROVIDE THAT THE BOARD OF TRUSTEES OF THESE INSTITUTIONS IS VESTED WITH CERTAIN POWERS OF EMINENT DOMAIN, AND TO PROVIDE THAT THESE INSTITUTIONS MAY NEGOTIATE FOR ITS ANNUAL AUDIT AND QUALITY REVIEW PROCESS WITH REPUTABLE CERTIFIED PUBLIC ACCOUNTANT FIRMS SELECTED FROM A LIST PREAPPROVED BY THE STATE AUDITOR'S OFFICE; BY ADDING SECTION 59-101-430 SO AS TO AUTHORIZE THE GOVERNING BODY OF A STATE-SUPPORTED INSTITUTION OF HIGHER LEARNING TO ENTER INTO GROUND LEASE OR LEASE-PURCHASE AGREEMENTS WITH A PRIVATE ENTITY FOR THE CREATION AND OPERATION OF AN ON-CAMPUS FACILITY, THE PURPOSE OF WHICH MUST BE DETERMINED BY THE GOVERNING BODY, AND TO PROVIDE FOR THE APPROVALS NECESSARY TO ENTER INTO THE AGREEMENT AND FOR SPECIFIC TERMS AND CONDITIONS WHICH MUST BE A PART OF THE AGREEMENT; BY ADDING SECTION 59-101-440 SO AS TO PROVIDE THAT INSTITUTIONS OF HIGHER LEARNING MAY EMPLOY INSIDE OR OUTSIDE COUNSEL TO ADVISE IT OR REPRESENT IT IN ANY MATTER EXCEPT A LITIGATION MATTER WITHOUT THE APPROVAL OF THE ATTORNEY GENERAL; BY ADDING SECTION 59-150-356 SO AS TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION IN DEVELOPING THE APPLICATION AND REVIEW PROCESS FOR TECHNOLOGY GRANTS FROM THE EDUCATION LOTTERY ACCOUNT FOR FOUR-YEAR PUBLIC INSTITUTIONS SHALL DEVELOP A FORMULA FOR THE ALLOCATION OF THESE GRANTS WHICH IS NOT COMPETITIVELY BASED IN ORDER TO PERMIT MULTI-YEAR INVESTMENT APPROACHES; AND TO REPEAL ARTICLE 3, CHAPTER 101, TITLE 59 OF THE 1976 CODE RELATING TO HIGHER EDUCATION REGULATORY, PROCEDURAL, AND FINANCIAL MATTERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 101, Title 59 of the 1976 Code is amended by adding:
Section 59-101-610. A public institution of higher learning may spend federal and other nonstate appropriated sources of revenue to provide lump-sum bonuses at levels outlined in a plan approved by the governing body of the respective public institution of higher learning and according to guidelines established in the plan. The public institution of higher learning must maintain documentation to show that the use of federal funds for this purpose is in compliance with federal law. This payment is not a part of the employee's base salary and is not earnable compensation for purposes of employee and employer contributions to the respective retirement systems.
Section 59-101-620. A public institution of higher learning may offer educational fee waivers to no more than four percent of the total student body.
Section 59-101-630. Notwithstanding any other provision of law, and in recognition and support of the opportunities for economic development presented through the expansion of research activities, a public institution of higher learning may establish research grant positions funded by federal grants, public charity grants, private foundation grants, research grants, medical school practice plans, individual private gifts, externally generated revenue for service or testing activities, and grant generated revenue or a combination of these, without regard to the authorized number of full-time equivalency (FTE) positions allocated to the public institution of higher learning, provided that:
(1) state funds must not be used to fund any portion of research grant positions. FTE positions funded solely or partially by state or other funding sources shall remain subject to the number of FTE positions authorized for each public institution of higher learning;
(2) research grant positions shall not occupy FTE positions;
(3) research grant positions may be established using other funds during the proposal development or pre-award stages of grant funding in anticipation of specific grant or project funding;
(4) research grant positions may be established for multiple years; however, research grant positions are limited to and may not exist beyond the duration of the funding for the project or grant or any subsequent renewal. At the discretion of the public institution of higher learning other funds may be used to fund continued employment between the expiration of one grant and the subsequent renewal of the same or similar grant or the award of an additional grant. When funding for the project or grant ends or is insufficient to continue payments under the conditions of the project or grant, research grant employees must be terminated and these positions must cease to exist. Research grant employees are exempt from the provisions of Sections 8-17-310 through 8-17-380;
(5) persons occupying research grant positions may be eligible for all benefits, not to exceed those benefits available to covered state employees, provided that funds are available within the grant or project or by use of grant-generated revenue;
(6) persons occupying research grant positions are employed at-will and do not have grievance rights afforded to covered state employees or faculty of the respective public institution of higher learning. Research grant employees are not entitled to compensation beyond the date of termination, other than for the part of the project or grant that has been performed; and
(7) discretionary determinations by a public institution of higher learning as to whether to hire an employee pursuant to this section are final and not subject to administrative or judicial appeal.
Section 59-101-640. A public institution of higher learning may offer and fund, from any source of revenue, health insurance to full-time graduate assistants according to a plan approved by the governing body of the respective public institution of higher learning.
Section 59-101-650. The board of trustees of a public institution of higher learning is vested with the power of eminent domain. The authority granted in this section applies only to private lands. The lands condemned must be used by the public institution of higher learning in the performance of its functions in the acquisition, construction, and operation of facilities for the public institution of higher learning, and is subject to the approval of the State Budget and Control Board.
Section 59-101-660. A public institution of higher learning may negotiate for its annual audit and quality review process with reputable certified public accountant firms selected from a list preapproved by the State Auditor's office."
SECTION 2. Chapter 101, Title 59 of the 1976 Code is amended by adding:
"Section 59-101-430. The governing body of any institution of higher learning, as defined in Section 59-103-5 with the approval of the Budget and Control Board may enter into one or more ground lease or lease-purchase agreements with a private entity whereby the private entity will provide all services necessary for the creation and operation of an on-campus facility, the purpose of which shall be determined by the institution's governing body including, but not limited to, financing, designing, constructing, managing, operating, and maintaining the facility, and related services. Upon expiration of the ground lease or lease-purchase agreement term, the private entity shall surrender unto the institution, such premises with the existing buildings, other structures and improvements constructed and located thereon and therein, in the same condition as when the construction of the buildings, other structures, and improvements were completed, only natural and normal wear and tear excepted. The Budget and Control Board must first approve all ground lease or lease-purchase agreement terms and conditions including the consideration involved, and the full faith and credit of the State toward the lease obligations must not be pledged, and any statement to the contrary is deemed null and void as a matter of public policy. The approval required herein shall be in lieu of or a substitute for any other approval required by any other provision of law or regulation in connection with the undertaking of the private entity and the institution; however, the private entity and the institution shall adhere to fire, life, and safety codes as required by the Office of the State Engineer."
SECTION 3. Chapter 101, Title 59 of the 1976 Code is amended by adding:
"Section 59-101-440. Notwithstanding the provisions of Section 1-7-80, institutions of higher learning may employ inside or outside counsel to advise it or represent it in any matter except a litigation matter without the approval of the Attorney General."
SECTION 4. Chapter 150, Title 59 of the 1976 Code is amended by adding:
"Section 59-150-356. The Commission on Higher Education in developing the application and review process for technology grants from the Education Lottery Account for four-year public institutions shall develop a formula for the allocation of these grants which is not competitively based in order to permit multi-year investment approaches."
SECTION 5. Article 3, Chapter 101, Title 59 of the 1976 Code is repealed.
SECTION 6. This act takes effect upon approval by the Governor.
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