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Sponsors: Reps. Harrell, Harrison, Cooper, Walker, Cato, Witherspoon, White, Gambrell and Bales
Document Path: l:\council\bills\dt\27005bb08.doc
Companion/Similar bill(s): 1252
Introduced in the House on January 16, 2008
Introduced in the Senate on February 19, 2008
Last Amended on February 14, 2008
Currently residing in the Senate Committee on Finance
Summary: Research Centers of Economic Excellence Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 1/16/2008 House Introduced and read first time HJ-7 1/16/2008 House Referred to Committee on Ways and Means HJ-7 2/7/2008 House Committee report: Favorable with amendment Ways and Means HJ-17 2/8/2008 Scrivener's error corrected 2/13/2008 House Requests for debate-Rep(s). Scott, Sellers, Kennedy, JH Neal, Hart, Bingham, Hagood, Brantley, Hodges, Shoopman, Young, Hosey, Clyburn, Mulvaney, Cooper, Bales, Merrill, Huggins, Cotty, Limehouse, Bedingfield, JR Smith, White, and Govan HJ-19 2/14/2008 House Member(s) request name added as sponsor: Bales 2/14/2008 House Amended HJ-24 2/14/2008 House Read second time HJ-29 2/14/2008 House Roll call Yeas-107 Nays-0 HJ-29 2/14/2008 House Unanimous consent for third reading on next legislative day HJ-29 2/15/2008 House Read third time and sent to Senate HJ-2 2/19/2008 Senate Introduced and read first time SJ-6 2/19/2008 Senate Referred to Committee on Finance SJ-6
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VERSIONS OF THIS BILL
Indicates Matter Stricken
Indicates New Matter
February 14, 2008
Introduced by Reps. Harrell, Harrison, Cooper, Walker, Cato, Witherspoon, White, Gambrell and Bales
S. Printed 2/14/08--H.
Read the first time January 16, 2008.
TO AMEND SECTION 2-75-5, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEGISLATIVE FINDINGS CONCERNING RESEARCH CENTERS OF ECONOMIC EXCELLENCE, SO AS TO REVISE REFERENCES AS TO SOURCES OF FUNDS FOR ENDOWED PROFESSORSHIPS; TO AMEND SECTION 2-75-30, RELATING TO CENTERS OF EXCELLENCE MATCHING ENDOWMENT, SO AS TO PROVIDE THAT INTEREST EARNINGS OF THE ENDOWMENT MAY BE USED FOR PROGRAMMATIC SUPPORT IN ACCORDANCE WITH BOARD POLICIES AND GUIDELINES; TO AMEND SECTION 2-75-50, RELATING TO APPLICATION REQUIREMENTS, SO AS TO REVISE THE FUNDING DOCUMENTATION AN APPLICATION MUST CONTAIN; TO AMEND SECTION 2-75-90, AS AMENDED, RELATING TO MEETING MATCHING REQUIREMENT WITH PRIVATE OR FEDERAL FUNDS, SO AS TO DELETE OBSOLETE LANGUAGE; BY ADDING SECTION 2-75-100 SO AS TO ALLOW SENIOR RESEARCH UNIVERSITIES TO UTILIZE A PORTION OF NONSTATE MATCHING FUNDS TO PAY FOR INITIAL OPERATING COSTS; AND BY ADDING SECTION 2-75-110 SO AS TO ALLOW THESE UNIVERSITIES TO ACCEPT AND APPLY CASH EQUIVALENT AND IN-KIND DONATIONS FROM NONSTATE SOURCES.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 2-75-5 of the 1976 Code is amended to read:
"Section 2-75-5. (A) This chapter is known and may be cited as the 'South Carolina Research Centers of Economic Excellence Act'.
(B) The General Assembly finds that:
(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 nonstate 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 nonstate sources, provide a foundation for the creation of centers of economic excellence."
SECTION 2. Section 2-75-10 of the 1976 Code is amended to read:
"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 providing annually to the Commission on Higher Education a schedule by which applications for funding are received and awarded on a competitive basis, 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 General Assembly as well as the Budget and Control Board, which shall include an audit performed by an independent auditor."
SECTION 3. Section 2-75-30 of the 1976 Code is amended to read:
"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, except that endowment appropriations for the current fiscal year may not be funded until all state-supported scholarships are fully funded. The fund must be managed by the State Treasurer, subject to awards from the endowment as provided in this chapter. Interest earnings of the endowment must remain in the fund."
SECTION 4. Section 2-75-50 of the 1976 Code is amended to read:
"Section 2-75-50. (A) 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.
(B) Eligible research universities are strongly encouraged to partner with other South Carolina colleges and universities to develop proposals that will enhance the economic competitiveness of our State, and to enhance science and engineering through collaborations in related disciplines."
SECTION 5. Section 2-75-90 of the 1976 Code, as added by Act 187 of 2004, is amended to read:
"Section 2-75-90. (A)
Notwithstanding the provisions of Sections 2-75-05(B)(4) and (6) and 2-75-50, To meet the endowed professorships matching requirement of those provisions, a research university may use funds specifically provided for use in the areas provided in subsection (B) that are derived from private or federal government sources, excluding state appropriations to the institution, tuition, or fees. Subject to the restrictions in subsection (B), only federal dollars received after July 1, 2003, may be used to meet the endowed professorships matching requirement.
(B) The matching funds in subsection (A) may be used only in the areas of Engineering, Nanotechnology, Biomedical Sciences, Energy Sciences, Environmental Sciences, Information and Management Sciences, and for other sciences and research that create well-paying jobs and enhanced economic opportunities for the people of South Carolina and that are approved by the Research Centers of Excellence Review Board."
SECTION 6. Chapter 75, Title 2 of the 1976 Code is amended by adding:
"Section 2-75-100. (A) The board may, at its discretion, permit the senior research universities to utilize a portion of the nonstate matching funds of any single award to pay for initial operating costs including, but not limited to, infrastructure improvement, purchase of equipment, and payment of salaries for junior faculty, researchers, technicians, and other support staff directly associated with the establishment of the professorship's research efforts and the creation of the center of economic excellence which the professorship serves. The portion established by the board must apply equally to all of the senior research universities' centers of economic excellence and endowed professorships created under this act. The portion established by the board may be modified by the board in order to facilitate program success.
(B) The full amount of every state award, with the exception of programmatic support proposals, must be placed into and remain in endowment. Should a center of economic excellence be dissolved, withdrawn, or otherwise terminated, the entirety of the state award which has been drawn by the institution must be returned to the Centers of Excellence Matching Endowment."
SECTION 7. Chapter 75, Title 2 of the 1976 Code is amended by adding:
"Section 2-75-110. In addition to accepting and applying nonstate funds, as stipulated in Section 2-75-90(A), to meet the matching requirement of each state award, a senior research university may accept and apply cash equivalent and in-kind donations from nonstate sources. Such donations must directly impact and promote the research of the endowed professorship and the center of economic excellence which the professorship serves. Such donations may include, but are not limited to, donated or rent-discounted laboratory, and research facility space; buildings, including sale-lease back; equipment; furnishings; and infrastructure upgrades. The value of each cash equivalent or in-kind donations must be determined using standard accounting methods and a cost share accounting policy established by the board. The total value of cash equivalent and in-kind donations applicable per award may not exceed the portion of nonstate matching funds available for non-endowment use established by the board. Cash equivalent and in-kind donations may only be applied if received by a senior research university after July 1, 2002."
SECTION 8. This act takes effect upon approval by the Governor.
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