Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 25, 2026

 

H. 4737

 

Introduced by Reps. McGinnis and Grant

 

S. Printed 3/25/26--H.

Read the first time January 13, 2026

 

________

 

The committee on House Education and Public Works

To whom was referred a Bill (H. 4737) to amend the South Carolina Code of Laws by adding Section 59-101-35 so as to create a mandatory orientation training program for new members of the boards of trustees, 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, SECTION 1, by striking Section 59-101-35(C)(8) and inserting:

       (8) fiduciary responsibility to the institution including, but not limited to, business operations, administration, budgeting, financing, financial reporting, and financial reserves, including a segment on endowment management;

Amend the bill further, SECTION 1, by striking Section 59-101-35(C)(12) and inserting:

       (12) academic affairs, including academic programs, academic space, and academic quality, as well as accreditation requirements of the Southern Association of Colleges and Schools Commission on Colleges (SAS-COC) and faculty and staff welfare;

Renumber sections to conform.

Amend title to conform.

 

SHANNON ERICKSON for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill as amended requires state institutions of higher learning to establish a board orientation program designed to address the role, duties, and responsibilities of the board of trustees for new board members, to be conducted at least once during their first year of membership. The amended bill enumerates several requirements of the orientation and training program, including that board members become familiar with their duties, the governing board committee structure, accounting methods and fiduciary requirements of the board, regulatory and statutory requirements of the board, and other strategic planning guidelines required of boards. The amended bill specifies that the training must address the board's fiduciary responsibility to the institution including, but not limited to, business operations, administration, budgeting, financing, financial reporting, and financial reserves.

The bill states that the orientation program and training must include at least eight hours of education and instruction for the new board members, which may be completed in one block or broken up over the course of a fiscal year. The president of each institution must report annually to the Chairman of the Senate Education Committee and the Chairman of the House Education and Public Works Committee the number of hours of training and development that each member of his board of trustees received during the preceding fiscal year. The bill takes effect July 1, 2026.

USC, Clemson, MUSC, Lander, and the Citadel all report that this bill as amended would have a minimal expenditure impact that could be managed with existing institutional budgets. Winthrop indicates that the institution will need to hire outside counsel and subject matter experts to develop and conduct the training, as well as training materials and would incur additional costs of approximately $35,000 in FY 2026-27, and $30,000 each year thereafter. CofC reports that an additional $14,000 annually beginning in FY 2026-27 would be needed for trainer and travel fees as result of the legislation. Both Winthrop and CofC indicate additional General Fund appropriations would be needed to cover these expenses. CCU estimates $10,000 in additional expenses would be incurred in FY 2026-27 for the development of the training program, which would be managed with existing resources.

The Tech System on behalf of technical colleges in the state report that technical college area commissioners currently have an orientation, and therefore, any additional expenditure impact would be minimal and managed with current resources.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 59-101-35 SO AS TO CREATE A MANDATORY ORIENTATION TRAINING PROGRAM FOR NEW MEMBERS OF THE BOARDS OF TRUSTEES OF THE PUBLIC INSTITUTIONS OF HIGHER LEARNING IN THIS STATE, TO PROVIDE SPECIFIC REQUIREMENTS FOR THE PROGRAM, AND TO PROVIDE RELATED DUTIES OF THE PRESIDENT AND BOARD SECRETARY OF EACH INSTITUTION.

 

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

 

SECTION 1.  Article 1, Chapter 101, Title 59 of the S.C. Code is amended by adding:

 

    Section 59-101-35. (A) New members of the board of trustees of each public institution of higher learning in this State shall participate, at least once during their first year of membership, in a board orientation program. The board orientation program must be designed to address the role, duties, and responsibilities of the board of trustees.

    (B) The president and board secretary of each institution, in consultation with relevant staff and external stakeholders, shall develop the comprehensive orientation and training program.

    (C) The orientation program and training must include, but is not limited to:

       (1) board members' duty to this State, with particular attention to their respective applicable statutory and regulatory authority;

       (2) governing board committee structure and functions including the duties of the board's executive committee;

       (3) professional accounting and reporting standards;

       (4) methods for meeting the statutory, regulatory, and fiduciary obligations of the board;

       (5) the requirements of the South Carolina Freedom of Information Act;

       (6) ethical considerations arising from membership on a public body, including the South Carolina Ethics Act;

       (7) creating, approving, and implementing institution-wide rules, regulations, and policies;

       (8) business operations, administration, budgeting, financing, financial reporting, and financial reserves, including a segment on endowment management;

       (9) setting student tuition, mandatory fees, and other necessary charges, including a review of student debt trends as well as inflation trends;

       (10) workforce planning, strategy, and investment;

       (11) institutional advancement through philanthropic giving, fundraising initiatives, alumni programming, communications and media, government and public relations, and community affairs;

       (12) academic affairs, including academic programs, academic space, and academic quality, as well as accreditation requirements of the Southern Association of Colleges and Schools Commission on Colleges (SAS-COC) and faculty and staff welfare;

       (13) student welfare issues, including residence life, student governance and activities, and the general physical and psychological well-being of all students;

       (14) athletics operations, strategies, and expenditures as well any conference or athletic association membership guidance;

       (15) current and future national and state issues in higher education;

       (16) relations between the board and president of the institution, including the policy-administration dichotomy;

       (17) the development of and guidance provided by the strategic plan of the institution; and

       (18) any other topics that the president of the institution considers necessary or appropriate.

    (D) The orientation program and training must include at least eight hours of education and instruction for the new board members. The training may be completed in one block or broken up over the course of a fiscal year, provided that a new trustee shall complete the full eight hours of training within the first twelve months after his appointment to the board.

    (E) The president of each institution shall report annually to the Chairman of the Senate Education Committee and the Chairman of the House Education and Public Works Committee the number of hours of training and development that each member of his board of trustees received during the preceding fiscal year.

 

SECTION 2.  This act takes effect on July 1, 2026.

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