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Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
June 3, 2003
H. 3899
Introduced by Reps. Harrell, Wilkins, Altman, Bailey, Bales, Battle, Bingham, Cato, Ceips, Clark, Cooper, Cotty, Dantzler, Duncan, Edge, Gilham, Harrison, Haskins, Herbkersman, Jennings, Keegan, Leach, Limehouse, Littlejohn, Loftis, E.H. Pitts, Mahaffey, Cobb-Hunter, McCraw, J.H. Neal, Perry, Mack, Quinn, Howard, Rhoad, Rutherford, Rice, Lourie, Sandifer, Neilson, Skelton, Miller, D.C. Smith, Bowers, J.E. Smith, Ott, J.R. Smith, Owens, W.D. Smith, Whipper, Snow, Stewart, Talley, Thompson, Tripp, Trotter, Umphlett, Vaughn, White, Whitmire and Witherspoon
S. Printed 6/3/03--S.
Read the first time April 29, 2003.
To whom was referred a Bill (H. 3899) to enact the South Carolina Research University Restructuring and Infrastructure Act of 2003; to amend Sections 59-103-5, 59-103-10, as amended, etc., respectfully
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 clause and inserting:
/ SECTION 1. Sections 59-101-1 through 59-101-410 of the 1976 Code are designated as Article 1, General Provisions.
SECTION 2. Chapter 101, Title 59 of the 1976 Code is amended by adding:
"Section 59-101-710. 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 59-101-720. A public institution of higher learning may offer educational fee waivers to no more than four percent of the total student body.
Section 59-101-730. Notwithstanding another 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 59-101-740. 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 59-101-750. 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 59-101-760. Notwithstanding another provision of law, a public institution of higher learning is not required to seek approval from the Attorney General before retaining outside counsel independent of other state agency or office processes.
Section 59-101-770. 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 3. Section 59-147-30 of the 1976 Code, as last amended by Act 302 of 1996, is further amended to read:
"Section 59-147-30. (A) Subject to the approval of the State Budget and Control Board by resolution duly adopted, the university may issue revenue bonds of the university for the purpose of financing or refinancing in whole or in part the cost of acquisition, construction, reconstruction, renovation and improvement of land, buildings, and other improvements to real property and equipment for the purpose of providing facilities serving the needs of the university including, but not limited to, dormitories, apartment buildings, dwelling houses, bookstore and other university operated stores, laundry, dining halls, cafeterias, parking facilities, student recreational, entertainment and fitness related facilities, inns, conference and other nondegree educational facilities and similar auxiliary facilities of the university and any other facilities which are auxiliary to any of the foregoing excluding, however, athletic department projects which primarily serve varsity athletic teams of the university.
(B) For purposes of this chapter, 'permanent improvement' is defined as:
(1) acquisition of land, regardless of cost;
(2) acquisition, as opposed to the construction, of buildings or other structures, regardless of cost;
(3) construction of additional facilities and work on existing facilities for any given project including their renovation, repair, maintenance, alteration, demolition in those instances in which the total cost of all work involved is $500,000 or more;
(4) architectural and engineering and other types of planning, and design work, regardless of cost, which is intended to result in a permanent improvement project. Master plans and feasibility studies are not permanent improvement projects and are not to be included;
(5) capital lease purchase of a facility acquisition or construction; and
(6) equipment that either becomes a permanent fixture of a facility or does not become permanent but is included in the construction contract should be included as a part of a project.
A permanent improvement that meets the above definition must become a project, regardless of the source of funds. However, an agency that has been authorized or appropriated capital improvement bond, capital reserve fund, state appropriated funds or state infrastructure bond fund by the General Assembly for capital improvements shall process a permanent improvement project, regardless of the amount."
SECTION 4. Section 11-35-710 of the 1976 Code as last amended by Act 264 of 2000, is further amended by adding appropriately numbered items at the end:
"( ) The construction of a facility on land owned or occupied by a public institution of higher learning, as defined in Section 59-103-5, where the land is under an initial lease to a third party for a term of at least fifteen but not more than forty years, provided that:
(a) the third party is not a foundation or eleemosynary organization affiliated with the public institutions of higher learning;
(b) the lease of the land from the public institution of higher learning to the third party complies with the State Leasing Procedures of the South Carolina Budget and Control Board;
(c) public funds are not used in the construction of the facility;
(d) there is no obligation on the public institution of higher learning to lease space in the facility;
(e) if the public institution of higher learning decides to lease space in the facility, the lease of space complies with the State Leasing Procedures of the South Carolina Budget and Control Board; and
(f) at or before the end of the term of the land lease, and at the discretion of the public institution of higher learning with approval of the South Carolina Budget and Control Board, construction on the land will be turned over to the public institution of higher learning or the land restored to a developable condition."
(g) the lease of the land from the public institution of higher learning to the third party does not involve the construction of a health care facility as defined in Section 44-7-130 that has not been approved by the South Carolina Budget and Control Board.
( ) The three sectors of public institutions of higher learning shall submit a procurement process to the State Commission on Higher Education to be submitted for approval by the State Budget and Control Board. These processes shall include provisions for audit and recertification."
SECTION 5. Title 11 of the 1976 Code is amended by adding:
Section 11-51-10. This chapter may be cited as the 'South Carolina Research University Infrastructure Act'.
Section 11-51-20. The General Assembly finds:
(1) That by Section 4, Act 10 of 1985, the General Assembly ratified an amendment to Article X, Section 13(6)(c), of the Constitution of this State, 1895. As amended, Article X, Section 13(6)(c) limits the issuance of certain general obligation debt of the State such that the maximum annual debt service on general obligation bonds of the State, excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, may not exceed five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds.
(2) Article X, Section 13(6)(c), as amended, further provides that the percentage rate of general revenues of the State by which general obligation bond debt service is limited may be reduced to four or increased to seven percent by legislative enactment passed by two-thirds vote of the total membership of the Senate and a two-thirds vote of the total membership of the House of Representatives.
(3) That pursuant to Article X, Section 13(6)(c), the General Assembly, in Act 254 of 2002, increased to five and one-half percent the percentage rate of the general revenues of the State by which general obligation bond debt service is limited with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation bonds issued to provide infrastructure for economic development within the State.
(4) Facility and infrastructure constraints prevent the advancement of research projects as well as restrict the ability of the research universities, as defined in Section 11-51-30, to retain faculty and generate research dollars. A dedicated source of funds to repay general obligation debt authorized pursuant to this chapter would provide a consistent funding stream for capital improvements at the research universities and allow for improved planning of capital expenditures to meet the mission of the research universities.
(5) In order to advance economic development and create a knowledge based economy, thereby increasing job opportunities, and to facilitate and increase research within the State at the research universities, it is in the interest of the State that, pursuant to Article X, Section 13(6)(c), that the limitation on general obligation debt imposed by Article X, Section 13(6)(c) be increased to six percent with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation debt issued pursuant to the provisions of this chapter.
(6) That Article X, Section 13(5) of the Constitution of this State, 1895, authorizes the General Assembly to authorize general obligation debt by two-thirds vote of the members of each House of the General Assembly, subject to such conditions or restrictions limiting the incurring of such indebtedness contained in the authorization to incur such indebtedness, and the provisions of Article X, Section 13(3) of the Constitution of this State.
(7) That Article X, Section 13(5) provides additional constitutional authority for the bonds authorized by this chapter and the designated principal amount of general obligation bonds to be issued pursuant to the debt limit as it existed prior to this chapter.
Section 11-51-30. As used in this chapter:
(1) 'Facilities and administration costs' means depreciation and use allowances, interest on debt associated with buildings, equipment and capital improvements, operation and maintenance expenses, library expenses, general administration expenses, departmental administration, sponsored projects administration, and student administration and services.
(2) 'General obligation debt' means any indebtedness of the State which must be secured in whole or in part by a pledge of the full faith, credit and taxing power of the State, including, but not limited to, bonds, notes and other evidences of indebtedness, and issued pursuant to the provisions of this chapter.
(3) 'Research Centers of Excellence Review Board' means the board created pursuant to Section 2-75-10.
(4) 'Research infrastructure project' or 'project' means a project that would advance economic development and create a knowledge based economy, thereby increasing job opportunities, or facilitate and increase externally funded research at the research universities, including, but not limited to, land acquisition, acquisition or construction of buildings, equipment, furnishings, site preparation, road and highway improvements, water and sewer infrastructure, and other things necessary or convenient to advance economic development or to facilitate and increase research at the research universities.
(5) 'Research universities' means Clemson University, The Medical University of South Carolina, and the University of South Carolina - Columbia.
(6) 'State Board' means the South Carolina State Budget and Control Board.
Section 11-51-40. To obtain funds for allocation to the research universities for the financing of research infrastructure projects, there may be issued general obligation debt pursuant to the conditions prescribed by this chapter.
Section 11-51-50. (A) Pursuant to the provisions of Article X, Section 13(6)(c) of the Constitution of this State, 1895, as amended, and by enactment of this chapter, the General Assembly provides that general obligation debt may be issued pursuant to this chapter only at such times as the maximum annual debt service on all general obligation bonds of the State, including economic development bonds and bonds issued pursuant to this chapter, outstanding and being issued, but excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, will not exceed six percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds. The State may not issue general obligation bonds, excluding economic development bonds and bonds authorized pursuant to this chapter, highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, if at the time of issuance the maximum annual debt service on these general obligation bonds, outstanding and being issued, exceeds five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds.
(B) At the time of issuance of general obligation debt pursuant to this chapter, the maximum annual debt service on such general obligation debt outstanding or being issued must not exceed one-half of one percent of the general revenues of this State for the fiscal year next preceding, excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds.
(C) With respect to the first seven hundred million dollars in principal amount of general obligation bonds issued after the effective date of this chapter within the debt service constraints set forth in subsections (A) and (B) of this section, the General Assembly provides additional constitutional authorization for such bonds pursuant to Article X, Section 13(5) of the Constitution of this State, 1895.
Section 11-51-60. In the event the research infrastructure project is used for a purpose other than as approved by the Research Centers of Excellence Review Board pursuant to Section 11-51-80(2), the research university for which the research infrastructure project was originally established shall reimburse the State a percentage of debt service on the general obligation debt issued to finance the debt, the percentage to be equal to the percentage of the research infrastructure project which is used for an unapproved purpose. Amounts reimbursed to the State pursuant to this section must be applied, as directed by the State Board, to the debt service on the applicable general obligation debt, either currently or by way of defeasance, or to the general fund of the State.
Section 11-51-70. As a condition precedent to the issuance of general obligation debt pursuant to the provisions of this chapter, the Research Centers of Excellence Review Board shall certify to the State Board that at least fifty percent of the cost of such research infrastructure project is being provided by private, federal, municipal, county or other local government sources. This portion of the cost, in the discretion of the Research Centers of Excellence Review Board, may be in the form of cash; cash equivalent; buildings including sale-lease back; gifts in kind including, but not limited to, land, roads, water and sewer, and maintenance of infrastructure; facilities and administration costs; equipment; or furnishings.
Section 11-51-80. Before the issuance of general obligation debt, the Research Centers of Excellence Review Board shall provide the Joint Bond Review Committee and the State Board the following:
(1) a description of the research infrastructure project for which general obligation debt is requested to be issued;
(2) a certification by the Research Centers of Excellence Review Board that the provisions of Section 11-51-70 have been met, that the source of funding has been identified, and that the research infrastructure project complies with the provisions of this chapter ;
(3) the total cost of the research infrastructure project and the principal amount of general obligation debt requested to be issued;
(4) a tentative time schedule setting forth the period of time during which the proceeds of the general obligation debt requested to be issued will be expended;
(5) a debt service schedule showing the annual principal and interest requirements, at a projected current rate of interest, on the requested general obligation debt;
(6) the total amount of the general obligation debt issued pursuant to this chapter; and
(7) a debt service schedule showing the principal and interest requirements for the general obligation debt outstanding and the proposed general obligation debt at a projected current rate of interest.
Section 11-51-90. The principal amount of the general obligation debt must be provided to each of the research universities on a competitive basis by the Research Centers of Excellence Review Board.
Section 11-51-100. Following the receipt of the information presented pursuant to Section 11-51-80, and after approval by the Joint Bond Review Committee, the State Board, by resolution duly adopted, shall effect the issuance of general obligation debt, or pending the issuance of the general obligation debt, effect the issuance of general obligation debt anticipation notes pursuant to Chapter 17 of this title.
Section 11-51-110. To effect the issuance of general obligation debt, the State Board shall adopt a resolution providing for the issuance of general obligation debt pursuant to the provisions of this chapter. The authorizing resolution must include:
(1) a schedule showing the aggregate principal amount of general obligation debt issued, the annual principal payments required to retire the general obligation debt, and the interest on the general obligation debt;
(2) the amount of general obligation debt proposed to be issued;
(3) a schedule showing future annual principal requirements and estimated annual interest requirements on the general obligation debt to be issued;
(4) a certificate evidencing that the provisions of Section 11-51-70 of this chapter have been or will be met; and
(5) a certificate of the State Auditor as to the general fund revenues of the State for the fiscal year next preceding, excluding revenues pledged to the payment of State Highway Bonds and State Institution Bonds.
Section 11-51-120. The general obligation debt must bear the date and mature at the time that the State Board resolution provides, except that the general obligation debt may not mature more than thirty years from its date of issue. The general obligation debt may be in the denominations, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the State Board before its issue. The general obligation debt may bear interest payable at the times and at the rates determined by the state board.
Section 11-51-125. In addition to the research infrastructure projects eligible for funding from the proceeds of bonds authorized pursuant to this chapter, an amount of the bonds authorized pursuant to this chapter equal to one million dollars for each public institution of higher learning as defined in Section 59-103-5(2), not including research universities, must be set aside for deferred maintenance at these eligible institutions. The Research Centers of Excellence Review Board has no jurisdiction over these projects and no matching requirement is imposed for these projects. Eligible institutions may use these bond proceeds for any purpose for which the proceeds of bonds issued pursuant to Act 1377 of 1968 may be used. All such projects must be approved by the Joint Bond Review Committee and the state board.
Section 11-51-130. General obligation debt issued pursuant to this chapter is exempt from taxation as provided in Section 12-2-50.
Section 11-51-140. General obligation debt issued pursuant to this chapter must be signed by the Governor and the State Treasurer and attested by the Secretary of State. The Governor, State Treasurer, and Secretary of State may sign the general obligation debt by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon the general obligation debt. The delivery of the general obligation debt executed and authenticated, as provided in the State Board resolution, is valid notwithstanding changes in officers or seal occurring after the execution or authentication.
Section 11-51-150. For the payment of the principal of and interest on the general obligation debt issued and outstanding pursuant to this chapter there is pledged the full faith, credit, and taxing power of this State, and in accordance with the provisions of Section 13(4), Article X of the Constitution of this State, 1895, the General Assembly allocates on an annual basis sufficient tax revenues to provide for the punctual payment of the principal of and interest on the general obligation debt authorized by this chapter.
Section 11-51-160. General obligation debt must be sold by the Governor and the State Treasurer upon sealed proposals, after publication of a summary notice of the sale one or more times at least seven days before the sale, in a financial paper published in New York City which regularly publishes notices of sale of state or municipal bonds. The general obligation debt may be awarded upon the terms and in the manner as prescribed by the State Treasurer. The right is reserved to reject bids and to re-advertise the general obligation debt for sale. For the purpose of bringing about successful sales of the general obligation debt, the State Treasurer may do all things ordinarily and customarily done in connection with the sale of state or municipal bonds. Expenses incident to the sale of the general obligation debt must be paid from the proceeds of the sale of the general obligation debt.
Section 11-51-170. The proceeds of the sale of general obligation debt must be received by the State Treasurer and applied by him to the purposes for which issued, but the purchasers of the general obligation debt are in no way liable for the proper application of the proceeds to the purposes for which they are intended.
Section 11-51-180. It is lawful for executors, administrators, guardians, and other fiduciaries to invest monies in their hands in general obligation debt issued pursuant to this chapter.
Section 11-51-190. The proceeds received from the issuance of general obligation debt, after deducting the costs of issuance, must be expended only for the purpose of providing research infrastructure projects."
SECTION 6. Chapter 75, Title 2 of the 1976 Code, is amended by adding:
"Section 2-75-90. (A) Notwithstanding the provisions of Sections 2-75-05(B)(4) and (6) and 2-75-50 of the 1976 Code, to meet the endowed professorships matching requirement of those provisions, a research university may use funds specifically provided for use in the areas provided for in subsection (B) that are derived from private, federal, municipal, county, or local 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 7. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 8. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
TO ENACT THE SOUTH CAROLINA RESEARCH UNIVERSITY RESTRUCTURING AND INFRASTRUCTURE ACT OF 2003; TO AMEND SECTIONS 59-103-5, 59-103-10, AS AMENDED, 59-103-15, AS AMENDED, 59-103-20, AS AMENDED, 59-103-25, 59-103-30, 59-103-35, AS AMENDED, 59-103-36, 59-103-40, 59-103-45, AS AMENDED, 59-103-60, AS AMENDED, 59-103-65, 59-103-70, 59-103-90, AS AMENDED, 59-103-130, 59-103-140, 59-103-150, 59-103-160, 59-103-165, 59-103-170, 59-103-180, 59-103-190, 59-103-195, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO THE STATE COMMISSION ON HIGHER EDUCATION, SO AS TO DEFINE CERTAIN TERMS, CHANGE THE COMPOSITION OF THE COMMISSION TO DELETE REPRESENTATIVES OF THE RESEARCH UNIVERSITIES FROM THE COMMISSION, PROVIDE WHEN RESEARCH UNIVERSITIES ARE SUBJECT TO THE PROVISIONS OF THIS CHAPTER, AND MAKE OTHER TECHNICAL CHANGES; BY ADDING SECTION 59-103-210, SO AS TO EXEMPT RESEARCH UNIVERSITIES FROM THE PROVISIONS OF CHAPTER 103, TITLE 59 AND THE COUNCIL OF THE COMMISSION ON HIGHER EDUCATION UNLESS EXPRESSLY STATED IN THE CHAPTER; BY ADDING SECTION 59-103-220 SO AS TO DIRECT THE COMMISSION ON HIGHER EDUCATION, THE RESEARCH OVERSIGHT COUNCIL, PUBLIC AND PRIVATE INSTITUTIONS OF HIGHER LEARNING, AND RESEARCH UNIVERSITIES TO WORK TOGETHER TO IMPROVE SERVICE AND EDUCATION; BY ADDING CHAPTER 155 TO TITLE 59 SO AS TO CREATE THE SOUTH CAROLINA RESEARCH OVERSIGHT COUNCIL, DEFINE CERTAIN TERMS, PROVIDE FOR THE MEMBERSHIP OF THE COUNCIL, SET FORTH THE COUNCIL'S MISSION, GOALS, POWERS, DUTIES, AND RESPONSIBILITIES, PROVIDE FOR THE COUNCIL'S COLLECTION OF DATA AND THE MEASURE OF PERFORMANCE FOR RESEARCH UNIVERSITIES, PROVIDE FOR THE PREPARATION OF A BUDGET FOR RESEARCH UNIVERSITIES, SET FORTH THE RESPONSIBILITY OF THE RESEARCH OVERSIGHT COUNCIL TO MAKE RECOMMENDATIONS REGARDING RESEARCH UNIVERSITIES, PROVIDE FUNDING FOR THE COUNCIL, PROVIDE AN EXECUTIVE DIRECTOR AND STAFF FOR THE COUNCIL, PROVIDE FOR THE CREATION OF COMMITTEES, PROVIDE FOR THE APPROVAL OF NEW FACILITIES WITH RESPECT TO RESEARCH UNIVERSITIES, PROVIDE FOR EXPENDITURE OF NONSTATE FUNDS AND THE USE OF FEE WAIVERS, PROVIDE RESEARCH GRANT POSITIONS PURSUANT TO CERTAIN CONDITIONS AND CERTAIN FUNDING SOURCES; TO AMEND SECTION 2-75-10 AND SECTION 2-75-70, BOTH RELATING TO THE RESEARCH CENTERS OF EXCELLENCE REVIEW BOARD, SO AS TO CONFORM ACTIVITIES OF THE RESEARCH CENTERS OF EXCELLENCE REVIEW BOARD WITH THE DUTIES AND POWERS OF THE RESEARCH OVERSIGHT COUNCIL; TO AMEND SECTION 11-35-710, AS AMENDED, RELATING TO EXEMPTIONS FROM THE PROCUREMENT CODE, SO AS TO PROVIDE THAT CONSTRUCTION OF A FACILITY ON LAND OWNED OR OCCUPIED BY A RESEARCH UNIVERSITY IS EXEMPT FROM THE PROCUREMENT CODE PROVIDED CERTAIN CONDITIONS ARE MET; TO AMEND SECTIONS 59-118-30, AS AMENDED, 59-118-60, 59-118-70, 59-118-80, 59-118-90, 59-118-100, ALL RELATING TO THE SOUTH CAROLINA ACADEMIC ENDOWMENT ACT, AND TO ADD SECTIONS 59-118-75, 59-118-95, AND 59-118-105 SO AS TO DEFINE "RESEARCH UNIVERSITY" AND PROVIDE THAT THE PORTION OF STATE MATCHING FUNDS THAT ARE CURRENTLY AVAILABLE TO RESEARCH UNIVERSITIES WILL BE ADMINISTERED BY THE RESEARCH OVERSIGHT COUNCIL; BY ADDING CHAPTER 51 TO TITLE 11 SO AS TO ENACT THE STATE GENERAL OBLIGATION ECONOMIC DEVELOPMENT AND RESEARCH UNIVERSITY BOND ACT, DEFINE CERTAIN TERMS, PROVIDE FOR THE ISSUANCE AND SALE OF BONDS PURSUANT TO CERTAIN CONDITIONS, PROVIDE FOR NOTIFICATION TO THE JOINT BOND REVIEW COMMITTEE AND THE STATE BUDGET AND CONTROL BOARD, PROVIDE FOR EXPIRATION OF THE RIGHT TO ISSUE BONDS, PROVIDE FOR AN AUTHORIZING RESOLUTION TO ISSUE THE BONDS, PROVIDE FOR MATURITY OF THE BONDS, PROVIDE FOR TAX EXEMPT STATUS OF THE BONDS, PROVIDE FOR PAYMENT OF PRINCIPAL AND INTEREST ON THE BONDS, PROVIDE FOR PURCHASE OF BONDS, PROVIDE FOR EXPENDITURE OF PROCEEDS OF THE BONDS; AND TO REPEAL CHAPTER 41 OF TITLE 11 RELATING TO THE STATE GENERAL OBLIGATION ECONOMIC DEVELOPMENT BOND ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-103-5 of the 1976 Code is amended to read:
"Section 59-103-5. For purposes of this chapter only (1) 'public higher education' shall mean means state-supported education in the post-secondary field, including comprehensive and technical education and excluding research universities; (2) 'public institution of higher learning' shall mean means any state-supported-post-secondary educational institution, and shall include including technical and comprehensive educational institutions and excluding research universities; (3) 'private institution of higher learning' means any post-secondary educational institution that is not state supported; (4) 'research university' has the same meaning as defined in Section 59-155-10."
SECTION 2. Section 59-103-10 of the 1976 Code, as last amended by Act 359 of 1996, is further amended to read:
"Section 59-103-10. There is created the State Commission on Higher Education. The commission shall consist of fourteen thirteen members appointed by the Governor. The membership must consist of one at-large member to serve as chairman, one representative from each of the six congressional districts, three members appointed from the State at-large at large, three two representatives of the public colleges and universities institutions of higher learning, and one representative of the independent colleges and universities private institutions of higher learning of South Carolina.
The membership of the Commission on Higher Education must be as follows:
(1) Nine members, six to represent each of the congressional districts of this State appointed by the Governor upon the recommendation of a majority of the senators and a majority of the members of the House of Representatives comprising the legislative delegation from the district and three members appointed from the State at-large at large upon the advice and consent of the Senate. Each representative of a congressional district must be a resident of the congressional district he represents. In order to qualify for appointment, the representatives from the congressional districts and those appointed at large must have experience in at least one of the following areas: business, the education of future leaders and teachers, management, or policy. A member representing the congressional districts or appointed at large must not have been, during the succeeding five years, a member of a governing body of a public institution of higher learning in this State and must not be employed or have immediate family members employed by any of the public colleges and universities of this State. These members must be appointed for terms of four years and shall not serve on the commission for more than two consecutive terms. However, the initial term of office for a member appointed from an even-numbered congressional district shall must be two years.
If the boundaries of the congressional districts are changed, members serving on the commission shall continue to serve until the expiration of their current terms, but successors to members whose terms expire must be appointed from the newly defined congressional districts. If a congressional district is added, the commission must be enlarged to include a representative from that district.
(2) Three Two members to serve ex officio to represent the public colleges and universities appointed by the Governor with the advice and consent of the Senate. It shall is not be a conflict of interest for any a voting ex officio member to vote on matters pertaining to their his individual college or university. One member must be serving on the board of trustees of one of the public senior research institutions, one member must be serving on the board of trustees of one of the four-year public institutions of higher learning, and one member must be a member of one of the local area technical education commissions or the State Board for Technical and Comprehensive Education to represent the State Board for Technical and Comprehensive Education. These members must be appointed to serve terms of two years with terms to rotate among the institutions.
(3) One ex officio member to represent the independent colleges and universities private institutions of higher learning appointed by the Governor upon the advice and consent of the Senate. The individual appointed must be serving as a member of the Advisory Council of Private College Presidents. This member must be appointed for a term of two years and shall serve as a nonvoting member.
(4) One at-large member to serve as chairman appointed by the Governor with the advice and consent of the Senate. This member must be appointed for a term of four years and may be reappointed for one additional term; however, he may serve only one term as chairman.
The Governor, by his appointments, shall assure that various economic interests and minority groups, especially women and blacks, are fairly represented on the commission and shall attempt to assure that the graduates of no one public or private college or technical college are dominant on the commission. Vacancies must be filled in the manner of the original appointment for the unexpired portion of the term. All members Members of the commission shall serve until their successors are appointed and qualify."
SECTION 3. Section 59-103-15 of the 1976 Code, as last amended by Act 359 of 1996, is further amended to read:
"Section 59-103-15. (A)(1) The General Assembly has determined that the mission for higher education in South Carolina is to be a global leader in providing a coordinated, comprehensive system of excellence in education by providing instruction, research, and life-long learning opportunities which that are focused on economic development and benefit the State of South Carolina.
(2) The goals to be achieved through this mission are:
(a) high academic quality;
(b) affordable and accessible education;
(c) instructional excellence;
(d) coordination and cooperation with public education;
(e) cooperation among the General Assembly, Commission on Higher Education, Council of Presidents of State Institutions, institutions of higher learning, and the business community;
(f) economic growth;
(g) clearly defined missions.
(B) The General Assembly has determined that the primary mission or focus for each type of institution of higher learning or other post-secondary school in this State is as follows:
(1) Research institutions
(a) college-level baccalaureate education, master's, professional, and doctor of philosophy degrees which lead to continued education or employment;
(b) research through the use of government, corporate, nonprofit-organization grants, or state resources, or both;
(c) public service to the State and the local community;
(2) Four-year colleges and universities
(a) college-level baccalaureate education and selected master's degrees which lead to employment or continued education, or both, except for doctoral degrees currently being offered;
(b) limited and specialized research;
(c) public service to the State and the local community;
(3)(2) Two-year institutions - branches of the University of South Carolina
(a) college-level pre-baccalaureate education necessary to confer associates' degrees which lead to continued education at a four-year or research institution;
(b) public service to the State and the local community;
(4)(3) State technical and comprehensive education system
(a) all post-secondary vocational, technical, and occupational diploma and associate degree programs leading directly to employment or maintenance of employment and associate degree programs which enable students to gain access to other post-secondary education;
(b) up-to-date and appropriate occupational and technical training for adults;
(c) special school programs that provide training for prospective employees for prospective and existing industry in order to enhance the economic development of South Carolina;
(d) public service to the State and the local community;
(e) continue to remain technical, vocational, or occupational colleges with a mission as stated in item (4) (3) and primarily focused on technical education and the economic development of the State."
SECTION 4. Section 59-103-20 of the 1976 Code, as last amended by Act 359 of 1996, is further amended to read.
"Section 59-103-20. The commission shall meet regularly and shall have the authority and responsibility for a coordinated, efficient, and responsive public higher education system in this State consistent with the missions of each type of institution as stipulated in Section 59-103-15. In meeting this responsibility and in performing its duties and functions, the commission shall coordinate and collaborate at a minimum with the Council of Presidents of State Institutions, the council of board chairs of the various public institutions of higher learning, and the business community. The commission also is charged with examining the state's public institutions of higher learning relative to both short and long-range programs and missions which include:
(a) the role of state-supported public higher education in serving the needs of the State and the roles and participation of the individual public institutions of higher learning in the statewide program;
(b) enrollment trends, student costs, business management practices, accounting methods, operating results and needs, and capital fund requirements;
(c) the administrative setup and curriculum offerings of the several public institutions of higher learning and of the various departments, schools, institutes, and services within each institution these institutions and the respective relationships to the services and offerings of other public institutions of higher learning;
(d) areas of state-level coordination and cooperation with the objective of reducing duplication, increasing effectiveness, and achieving economies and eliminating sources of friction and misunderstanding;
(e) efforts to promote a clearer understanding and greater unity and good will among all public institutions of higher learning, both public and private institutions of higher learning, in the interest of serving the educational needs of the people of South Carolina on a statewide level."
SECTION 5. Section 59-103-25 of the 1976 Code is amended to read:
"Section 59-103-25. The commission shall compile and publish legislation applicable to it so that the relationships among the commission, the governing bodies of public institutions of higher education learning, the General Assembly, and the executive branches of government may be more clearly established and understood.
The commission shall create from among its membership such standing committees as it may deem considers necessary. The creation of the committees and their duties shall must be prescribed by a two-thirds vote of the membership of the commission. Special committees may be created and their duties prescribed by a majority vote of the membership of the commission."
SECTION 6. Section 59-103-30 of the 1976 Code, as added by Act 359 of 1996, is amended to read:
"Section 59-103-30. (A) The General Assembly has determined that the critical success factors, in priority order, for academic quality in the several public institutions of higher learning in this State are as follows:
(1) Mission Focus;
(2) Quality of Faculty;
(3) Classroom Quality;
(4) Institutional Cooperation and Collaboration;
(5) Administrative Efficiency;
(6) Entrance Requirements;
(7) Graduates' Achievements;
(8) User-Friendliness of the Institution;
(9) Research Funding.
(B) The General Assembly has determined that whether or not an a public institution of higher learning embodies these critical success factors can be measured by the following performance indicators as reflected under the critical success factors below:
(1) Mission Focus
(a) expenditure of funds to achieve institutional mission; (b) curricula offered to achieve mission;
(c) approval of a mission statement;
(d) adoption of a strategic plan to support the mission statement;
(e) attainment of goals of the strategic plan.
(2) Quality of Faculty
(a) academic and other credentials of professors and instructors;
(b) performance review system for faculty to include student and peer evaluations;
(c) post-tenure review for tenured faculty;
(d) compensation of faculty;
(e) availability of faculty to students outside the classroom;
(f) community and public service activities of faculty for which no extra compensation is paid.
(3) Instructional Quality
(a) class sizes and student/teacher ratios;
(b) number of credit hours taught by faculty;
(c) ratio of full-time faculty as compared to other full-time employees;
(d) accreditation of degree-granting programs;
(e) institutional emphasis on quality teacher education and reform.
(4) Institutional Cooperation and Collaboration
(a) sharing and use of technology, programs, equipment, supplies, and source matter experts within the institution, with other institutions, and with the business community;
(b) cooperation and collaboration with private industry.
(5) Administrative Efficiency
(a) percentage of administrative costs as compared to academic costs;
(b) use of best management practices;
(c) elimination of unjustified duplication of and waste in administrative and academic programs;
(d) amount of general overhead costs.
(6) Entrance Requirements
(a) SAT and ACT scores of student body;
(b) high school class standing, grade point averages, and activities of student body;
(c) post-secondary nonacademic achievements of student body;
(d) priority on enrolling in-state residents.
(7) Graduates' Achievements
(a) graduation rate;
(b) employment rate for graduates;
(c) employer feedback on graduates who were employed or not employed;
(d) scores of graduates on post-undergraduate professional, graduate, or employment-related examinations and certification tests;
(e) number of graduates who continued their education;
(f) credit hours earned of graduates.
(8) User-Friendliness of Institution
(a) transferability of credits to and from the institution;
(b) continuing education programs for graduates and others;
(c) accessibility to the institution of all citizens of the State.
(9) Research Funding
(a) financial support for reform in teacher education;
(b) amount of public and private sector grants.
(C) The commission, when using the critical success factors for the purpose of funding recommendations for public institutions of higher learning, is required to use objective, measurable criteria. (D) Critical success factors developed and used for the purpose of funding recommendations shall must be those which are directly related to the missions of the particular type of public institution of higher learning as outlined in Section 59-103-15(B) and not those factors which are not relevant to the success factors of the particular type of public institution of higher learning."
SECTION 7. Section 59-103-35 of the 1976 Code, as last amended by Act 359 of 1996, is further amended to read:
"Section 59-103-35. (A) All public Public institutions of higher learning shall submit annual budget requests to the commission in the manner set forth in this section. The State Board for Technical and Comprehensive Education shall submit an annual budget request to the commission representing the total requests of all area-wide technical and comprehensive educational institutions. The budget submitted by each public institution of higher learning and the State Board for Technical and Comprehensive Education must include all state funds, federal grants, tuition, and fees other than funds derived wholly from athletic or other student contests, from the activities of student organizations, from approved private practice plans, and from the operation of canteens and bookstores which may be retained by the these institutions and be used as determined by the respective governing boards, subject to annual audit by the State. Fees established by the respective governing boards for programs, activities, and projects not covered by appropriations or other revenues may be retained and used by each the institution as previously determined by the respective governing boards, subject to annual audit by the State. The budget request for the public higher education system shall must be submitted by the commission to the Governor and appropriate standing committees of the General Assembly in conjunction with the preparation of the annual general appropriations act for the applicable year. (B)Supplemental appropriations requests from any a public institution of higher education learning must be submitted first to the commission. If the commission does not concur in the requests, the affected public institution of higher learning may request a hearing on the requests before the appropriate committee of the General Assembly. The commission may appear at the hearing and present its own recommendations and findings to the same committee. The provisions of this paragraph do not apply to any a capital improvement projects project funded in whole or in part prior to before July 30, 1996.
(C) No A new program may must not be undertaken by any a public institution of higher education learning without the approval of the commission. The provisions of this chapter apply to all college parallel, transferable, and associate degree programs of technical and comprehensive education institutions. All other Other programs and offerings of technical and comprehensive education institutions are excluded from this chapter."
SECTION 8. Section 59-103-36 of the 1976 Code is amended to read:
"Section 59-103-36. Military students in the senior colleges and universities of this State shall must be included in the count of full-time equivalent students for the purpose of determining the appropriation of each public institution of higher learning. The Commission on Higher Education and the Budget and Control Board may make whatever audit adjustments are necessary to carry out this intent."
SECTION 9. Section 59-103-40 of the 1976 Code is amended to read:
"Section 59-103-40. The Commission shall establish There is established a council of presidents consisting of the presidents of the State public institutions of higher learning and research universities. The council of presidents shall appoint a chairman and such other officers and committees as it may see fit. It shall meet at least four times a year, of which two meetings will be held jointly with the commission and the South Carolina Research Oversight Council, as provided in Chapter 155, Title 59. The council of presidents shall establish committees consisting of qualified personnel representing the various State-supported public institutions of higher learning and research universities, either upon request of the commission, the South Carolina Research Oversight Council, or upon its own initiative, to investigate, study and report to the commission and the South Carolina Research Oversight Council on such subjects as:
(a) academic planning,
(b) business and financial coordination,
(c) library utilization and coordination."
SECTION 10. Section 59-103-45 of the 1976 Code, as last amended by Act 359 of 1996, is further amended to read:
"Section 59-103-45. In addition to the powers, duties, and functions of the Commission on Higher Education as provided by law, the commission, notwithstanding any other another provision of law to the contrary, shall have the following additional duties and functions with regard to the various public institutions of higher education learning:
(1) establish procedures for the transferability of courses at the undergraduate level between two-year and four-year institutions or schools;
(2) coordinate with the State Board of Education and the South Carolina Research Oversight Council in the approval of secondary education courses for the purpose of determining minimum college entrance requirements, and define minimum academic expectations for prospective post-secondary students, communicate these expectations to the State Board of Education, and work with the state board to ensure these expectations are met;
(3) review minimum undergraduate admissions standards for in-state and out-of-state students;
(4)(a) develop standards for determining how well an a public institution of higher learning has met or achieved the performance indicators for quality academic success as enumerated in Section 59-103-30, and develop mechanisms for measuring the standards of achievement of particular public institutions of higher learning. These standards and measurement mechanisms shall must be developed in consultation and cooperation with, at a minimum but not limited to, the Council of Presidents of State Institutions, the chairmen of the governing boards of the various public institutions of higher learning and the business community;
(b) base the public higher education funding formula in part on the achievement of the standards set for these performance indicators including base-line funding for public institutions of higher learning meeting the standards of achievement, incentive funding for public institutions of higher learning exceeding the standards of achievement, and reductions in funding for public institutions of higher learning which do not meet the standards of achievement, provided that each institution under the formula until July 1, 1999, must receive at least its fiscal year 1996-1997 formula amount;
(c) promulgate regulations to implement the provisions of subitems (a) and (b) above and submit such these regulations to the General Assembly for its review pursuant to the Administrative Procedures Act not later than the beginning of the 1997 Session of the General Assembly. ;
(d) develop a public higher education funding formula based entirely on an institution's achievement of the standards set for these performance indicators, this formula to be used beginning July 1, 1999. This new funding formula also must be contained in regulations promulgated by the commission and submitted to the General Assembly for its review in accordance with the Administrative Procedures Act;
(5) reduce, expand, or consolidate any a public institution of higher learning including those which do one that does not meet the standards of achievement in regard to the performance indicators for quality academic success enumerated in Section 59-103-30, and beginning July 1, 1999, close any a public institution of higher learning which that does not meet the standards of achievement in regard to the performance indicators for quality academic success enumerated in Section 59-103-30. The process to be followed for the closure, reduction, expansion, or consolidation of an a public institution of higher learning under this item (5) shall be is as promulgated in regulations of the commission which shall must be submitted to and approved by the General Assembly;
(6) review and approve each institutional mission statement to ensure it is within the overall mission of that particular type of public institution of higher learning as stipulated by Section 59-103-15 and is within the overall mission of the State;
(7) ensure access and equity opportunities at each public institution of higher learning for all the citizens of this State regardless of race, gender, color, creed, or national origin within the parameters provided by law."
SECTION 11. Section 59-103-60 of the 1976 Code, as last amended by Act 359 of 1996, is further amended to read:
"Section 59-103-60. The commission shall make such recommendations to the Governor's Office and the General Assembly as to policies, programs, curricula, facilities, administration, and financing of all state-supported public institutions of higher learning as may be considered desirable. The House Ways and Means Committee, the Senate Finance Committee, and the State Budget and Control Board may refer to the commission for investigation, study, and report any requests of public institutions of higher learning for new or additional appropriations for operating and for other purposes and for the establishment of new or expanded programs."
SECTION 12. Section 59-103-65 of the 1976 Code, as added by Act 359 of 1996, is amended to read:
"Section 59-103-65. If an a public institution of higher learning beginning July 1, 1999, is closed by the commission, the institution shall must be treated as a terminated agency under Section 1-20-30 and as such must be terminated in the manner provided therein. However, any remaining funds shall not revert to the general fund as provided in Section 1-20-30 but instead shall must be reallocated to public higher education funding through use of the public higher education funding formula in the manner the commission shall provide."
SECTION 13. Section 59-103-70 of the 1976 Code is amended to read:
"Section 59-103-70. The commission shall make reports to the Governor and the General Assembly at least annually on the status and progress of public higher education in the State, with such appropriate recommendations as may be appropriate."
SECTION 14. Section 59-103-90 of the 1976 Code, as last amended by Act 137 of 1995, is further amended to read:
"Section 59-103-90. (A) An executive director must be appointed by the commission to manage and carry out the duties of the commission as prescribed by law and assigned by the commission. The executive director is not subject to the State Employee Grievance Procedure Act of 1982 and may be dismissed without cause.
(B) A professional staff complement shall must be established by the executive director who shall ensure that there are persons on the staff who have the professional competence and experience to carry out the duties assigned and to ensure that there are persons on the staff who are familiar with the problems and capabilities of all of the principal types of state-supported public institutions of higher learning in the State. Provision shall must be made for persons of high competence and strong professional experience in the areas of academic affairs, public service and extension programs, business and financial affairs, institutional studies and long-range planning, student affairs, research and development, legal affairs, health affairs, institutional development, and for state and federal programs administered by the commission. The hiring of additional staff members to any a position for which funds were not specifically appropriated by the General Assembly shall require requires prior approval by the General Assembly."
SECTION 15. Section 59-103-130 of the 1976 Code is amended to read:
"Section 59-103-130. The Commission on Higher Education shall adopt guidelines whereby so that the publicly supported colleges and universities public institutions of higher learning of this State and research universities shall emphasize teaching as a career opportunity and provide students interested in a teaching career with opportunities to tutor other students."
SECTION 16. Section 59-103-140 of the 1976 Code is amended to read:
"Section 59-103-140. The Commission on Higher Education, in consultation with the State Board of Education, may contract with selected public or institutions of higher learning, private institutions of higher learning, colleges and universities, research universities or groupings of such these institutions, to provide centers of excellence in programs designed to train teachers. The commission shall devise guidelines and procedures by which institutions, or groups of institutions, may apply for such these contracts by the commission. Such These guidelines and procedures shall must include participation by local schools or school districts in such the programs as may be appropriate. Funds for implementing this activity shall must be appropriated annually to the Commission on Higher Education which, in consultation with the State Board of Education, shall monitor the performance of participating institutions and may or may not elect to renew such the contracts to any an original college or university."
SECTION 17. Section 59-103-150 of the 1976 Code is amended to read:
"Section 59-103-150. (A) As long as there is no impact on state appropriations and subject to approval by the governing body of the public institution of higher education learning or research university, the institution may implement an early retirement plan for its faculty to accomplish the following objectives:
(1) reallocate institutional resources;
(2) provide an equitable method to increase the flexibility of the institution to effect cost-saving measures;
(3) foster intellectual renewal;
(4) provide increased opportunities for promotion of a younger faculty;
(5) improve the opportunity to recruit qualified women and minorities.
(B) An early retirement plan may include provisions for institutions to pay:
(1) actuarial costs required by Sections 9-1-1850 and 9-11-60;
(2) health, dental, and life insurance costs;
(3) incentive payments;
(4) the costs of single premium annuity plans to provide supplemental benefits."
SECTION 18. Section 59-103-160 of the 1976 Code, as added by Act 27 of 1991, is amended to read:
"Section 59-103-160. (A) This section may be cited as the English Fluency in Higher Learning Act.
(B) The following words and phrases when used in this section have the meanings given to them unless the context clearly indicates otherwise: 'Instructional faculty' means every each member of a public institution of higher learning and research university whose first language is not English, other than visiting faculty but including graduate teaching assistants, who teaches one or more undergraduate credit courses at a campus of that institution within this State except:
(1) courses that are designed to be taught predominately in a foreign language;
(2) student participatory and activity courses such as clinics, studios, and seminars;
(3) special arrangement courses such as individualized instruction and independent study courses; and
(4) continuing education courses.
(C) Each public institution of higher learning and research university shall establish policies to:
(1) ensure that the instructional faculty whose second language is English possess adequate proficiency in both the written and spoken English language. Student and faculty input is required in establishing these policies.
(2) provide students with a grievance procedure regarding an instructor who is not able to write or speak the English language. (D)(1) Each public institution of higher learning and research university must submit its policy or amendments to the Commission on Higher Education within six months from the effective date of this section. Any amendments Amendments to the policy must be promptly forwarded to the commission. The commission shall notify the chairmen of the Senate and House Education Committees of those institutions not submitting plans and any an amendment to the commission.
(2) Each public institution of higher learning and research university must report annually to the Commission on Higher Education and the chairmen of the Senate and House of Representatives Education Committees grievances filed by students under the requirement of pursuant to subsection (C)(2) and the disposition of those grievances."
SECTION 19. Section 59-103-165 of the 1976 Code, as added by Act 271 of 1992, is amended to read:
"Section 59-103-165. The Commission on Higher Education is directed to work with the state's public institutions of higher education learning, research universities, and private institutions of higher education which learning that wish to participate, to develop information packages for eighth grade students and their parents on the options of post-secondary education available in South Carolina, the courses required to attend colleges and universities, and the financial requirements and assistance available for students pursuing additional education after high school.
During 1991-92, the commission shall develop the information packages, and to the extent that funds are appropriated by the General Assembly, pilot-test the program in a number of school districts. The commission shall report to the Senate Education Committee and the Education and Public Works Committee of the House on the pilot-testing."
SECTION 20. Section 59-103-170 of the 1976 Code, as added by Act 271 of 1992, is amended to read:
"Section 59-103-170. (A) After pilot-testing, the Commission on Higher Education shall work with this state's public institutions of higher education learning, research universities, and private higher education institutions of higher learning wishing to participate, to provide annually for the state's eighth grade students and their parents or guardians small group and one-on-one counseling on required high school courses and post-secondary options, financial requirements, and assistance available for a post-secondary education. These sessions must be held at each of the state's public schools which house an eighth grade class. The counseling may be provided during a week declared to be 'Education Options Week' or at another time convenient to the school and the cooperating institution of higher education learning. (B) The annual sessions will be phased-in over two years and by school year 1993-94 will be in the individual schools in accordance with Sections 59-103-165 through 59-103-190."
SECTION 21. Section 59-103-180 of the 1976 Code, as added by Act 271 of 1992, is amended to read:
"Section 59-103-180. The State Board of Education, the State Department of Education, the South Carolina Research Oversight Council, and the state's public school districts and schools shall cooperate with the Commission on Higher Education, research universities, and the public and private institutions of higher education learning in providing the counseling and shall assist in any manner considered appropriate by them. The schools shall make special efforts to ensure that as many students and parents or guardians as possible are made aware of the opportunity, are urged to attend the sessions, and receive the information."
SECTION 22. Section 59-103-190 of the 1976 Code, as added by Act 271 of 1992, is amended to read:
"Section 59-103-190. The businesses and industries of this State are requested to provide the opportunity to their employees with children in the eighth grade to attend the counseling sessions and to cooperate with institutions of higher education learning and research universities in presenting at the worksite small group and one-on-one counseling on required high school courses, post-secondary options, financial requirements, and assistance for post-secondary education."
SECTION 23. Section 59-103-195 of the 1976 Code, as added by Act 1 of 1999, is amended to read:
"Section 59-103-195. The State Commission on Higher Education shall have has review authority in order to determine the legitimacy and appropriateness of the tasting requirements pursuant to Sections 20-7-8920 and 20-7-8925. The commission shall also shall establish reasonable rules and restrictions through regulation, as appropriate, with regard to any a proposed course of instruction in the culinary arts which any a private or public institution of higher learning or research university desires to offer to students under twenty-one years of age in which the tasting of beer, ale, porter, wine, or other similar malt or fermented beverage or alcoholic liquor is required. Unless approved by the commission, no such this course and no a student under twenty-one years of age enrolled in such this course shall does not qualify for the exceptions provided under Sections 20-7-8920, 20-7-8925, 61-6-4070, or 61-4-90. A course of instruction on bartending or any a similar curriculum does not qualify for exception or approval by the commission under this section."
SECTION 24. Chapter 103, Title 59 of the 1976 Code is amended by adding:
"Section 59-103-210. The provisions of this chapter are not applicable to research universities except as explicitly provided."
SECTION 25. Chapter 103, Title 59 of the 1976 Code is amended by adding:
"Section 59-103-220. The Commission on Higher Education, the South Carolina Research Oversight Council, public and private institutions of higher learning, and research universities, shall cooperate and collaborate to better educate and serve the citizens of South Carolina and the nation, while also recognizing the unique roles of each entity."
SECTION 26. Title 59 of the 1976 Code is amended by adding:
Section 59-155-10. For purposes of this chapter only, 'research university' means:
(a) Clemson University;
(b) the Medical University of South Carolina; and
(c) the University of South Carolina - Columbia.
Section 59-155-20. (A) There is created the South Carolina Research Oversight Council. The council shall consist of ten members. The membership of the council must be as follows:
(1) one at-large member to serve as chairman appointed by the Governor with the advice and consent of the Senate. To qualify for appointment, the member must have extensive experience in higher education and experience in economic development, business development, or research that results in economic or business development. This member must be appointed for a term of four years and may serve only one term as chairman;
(2) one at-large member appointed by the President Pro Tempore of the Senate. To qualify for appointment, the member must have extensive experience in higher education and experience in economic development, business development, or research that results in economic or business development. This member must be appointed to serve a term of four years and may not serve on the council for more than two consecutive terms;
(3) one at-large member appointed by the Speaker of the House of Representatives. To qualify for appointment, the member must have extensive experience in higher education and experience in economic development, business development, or research that results in economic or business development. This member must be appointed to serve a term of four years and shall not serve on the council for more than two consecutive terms;
(4) three members to serve ex officio to represent the research universities. These members shall consist of the Chairmen of the Board of Trustees of each research university. The term on the council for each respective Chairman of the Board of Trustees must be coterminous with his term as Chairman of the Board of Trustees;
(5) three members to serve ex officio, one appointed by the Governor, one appointed by the President Pro Tempore of the Senate, and one appointed by the Speaker of the House of Representatives. These three members must be appointed from the membership of the respective Board of Trustees of each research university on a rotating basis every four years. The initial appointments must be made as follows: the Governor appoints from the Board of the Medical University of South Carolina; the President Pro Tempore of the Senate appoints from the Board of the University of South Carolina, and the Speaker of the House of Representatives appoints from the Board of Clemson University. The second rotation of appointments is as follows: the Governor appoints from the Board of Clemson University; the President Pro Tempore of the Senate appoints from the Board of the Medical University of South Carolina; and the Speaker of the House of Representatives appoints from the Board of the University of South Carolina. The third rotation of appointments is as follows: the Governor appoints from the Board of the University of South Carolina; the President Pro Tempore of the Senate appoints from the Board of Clemson University; and the Speaker of the House of Representatives appoints from the Board of the Medical University of South Carolina. At the end of the third rotation, the rotation begins as with the first rotation. These members must be appointed on an at-will basis, to serve at the pleasure of their appointees, for a term of four years and may not serve on the council for more than two consecutive terms. If an appointee ceases to serve on the Board of Trustees of a research university the vacancy must be filled in the manner of the original appointment;
(6) the Chairman of the Research Centers of Excellence Review Board, created in Section 2-75-10, to serve ex officio.
(B) The ex officio members have the right to vote on matters before the council, and it is a conflict of interest for any ex officio member to vote on matters pertaining to their individual research university. If an additional research university is recognized, the council must be enlarged to include the Chairman of the Board of Trustees of that research university and an additional joint appointment by the Governor, President Pro Tempore, and Speaker of the House of Representatives, pursuant to the terms described above. Members of the council shall serve until their successors are appointed and qualify.
Section 59-155-30. (A) The General Assembly has determined that the mission for each research university in South Carolina is to:
(1) achieve eminence as a center of higher learning by providing instruction, research, and life-long learning opportunities which are focused on economic development and job creation and benefit the State of South Carolina;
(2) promote and conduct research through the use of government, corporate, nonprofit-organization grants, and/or state resources; and
(3) provide public service to the State and the local community.
(B) The goals to be achieved by each research university through this mission are to:
(1) offer instruction of the highest quality to undergraduates and graduates from all walks of life;
(2) educate men and women for the professions in certain undergraduate and in graduate programs leading to degrees in the respective profession;
(3) secure research dollars from external sources, including federal, state, local, and private grants;
(4) engage in research and provide innovative leadership in applicable professions;
(5) lead in the advancement and application of knowledge through graduate study, research, and the management and transfer of intellectual property and to disseminate the results among scholars and the general public;
(6) attract and retain eminent faculty in order to provide the highest quality of instruction and leadership in research;
(7) seek the most able and promising students, within the State and without;
(8) utilize research in a manner to promote economic growth and development and create jobs in the State of South Carolina and the nation;
(9) strive for diversity in the student body and in the faculty and to promote international exchange of scholars and students;
(10) provide for students and faculty an atmosphere conducive to fellowship and understanding and to their constructive participation in the affairs of each research university and the community at large;
(11) expand educational opportunities for persons with special challenges such as minority status, physical disability, ethnic heritage, or insufficient financial resources;
(12) offer to the local community, the State of South Carolina and the nation the various kinds of public service and intellectual and cultural activities which are consonant with the purposes of each of the research universities;
(13) provide continuing education programs of the highest quality to the State and the nation;
(14) cooperate with and assist other colleges, educational institutions, and agencies, especially in South Carolina, by making available to them the facilities of the research universities and the experience and counsel of its members so as to contribute to education in the State and beyond; and
(15) establish new programs, schools, and degrees, and to undertake such research as the needs of the State and the nation may require.
Section 59-155-40. The Research Oversight Council shall meet regularly and is the body legally charged with the general coordination of the affairs of the research universities in this State. In addition to the powers, duties, and functions of the council as provided by law, the council, notwithstanding another provision of law to the contrary, has the following additional duties and functions with regard to research universities:
(1) develop a short-term and long-term strategic plan delineating:
(a) the needs of the State and the role of each research university in meeting those needs and achieving the goals listed in Section 59-155-30;
(b) the administrative organization and curriculum offerings of each research university and of the various departments, schools, institutes, and services within each research university and the respective relationships to the services and offerings of other research universities;
(c) areas of state-level coordination and cooperation with the objective of reducing duplication, increasing effectiveness, and achieving economies and eliminating sources of friction and misunderstanding;
(2) compile data with regard to profile measures and performance measures as provided in this chapter;
(3) develop standards for determining how well a research university has met or achieved the performance measures for quality academic success as enumerated pursuant to Section 59-155-60;
(4) develop a performance funding method based in part on the achievement of the performance measures including incentive funding for research universities exceeding the standards of achievement, and reductions in funding for research universities which do not meet the standards of achievement, provided that each research university under the formula until July 1, 2005, must receive at least its fiscal year 2002-2003 formula amount;
(5) submit an annual budget request to the Governor and General Assembly pursuant to Section 59-155-70;
(6) promulgate regulations to implement the provisions of this chapter and submit the regulations to the General Assembly for its review pursuant to the Administrative Procedures Act not later than the beginning of the 2004 Session of the General Assembly; (7) establish procedures for the transferability of courses at the undergraduate level from other institutions of higher learning;
(8) coordinate with the Commission on Higher Education and the State Board of Education in the approval of secondary education courses for the purpose of determining minimum college entrance requirements, and define minimum academic expectations for prospective post-secondary students, communicate these expectations to the State Board of Education, and work with the state board to ensure these expectations are met;
(9) review minimum undergraduate admissions standards for in-state and out-of-state students;
(10) review and approve each research university's mission statement to ensure it is within the council's strategic plan as set forth in subsection (1) and capable of achieving the mission and goals as set forth in Section 59-155-30; and
(11) review and approve or reject new academic programs undertaken by a research university before the programs are offered.
Section 59-155-50. (A) The General Assembly has determined that it is necessary to collect the following data annually for research universities in this State:
(1) enrollment trends;
(2) student statistics;
(3) business management; and
(4) operating and infrastructure requirements.
(B) The council shall promulgate regulations to implement profile measures to determine the data as listed in subsection (A) and submit such regulations to the General Assembly for its review pursuant to the Administrative Procedures Act not later than the beginning of the 2004 Session of the General Assembly.
Section 59-155-60. (A) The General Assembly has determined that the critical success factors for research universities in this State are as follows:
(1) mission focus;
(2) quality of faculty;
(3) quality of students;
(4) research funding;
(5) economic development; and
(6) standing as compared to peers and outside standards related to true peer institutions and programs.
(B) The council shall promulgate regulations to implement performance measures to determine whether or not a research university embodies the critical success factors listed in subsection (A) and submit the regulations to the General Assembly for its review pursuant to the Administrative Procedures Act not later than the beginning of the 2004 Session of the General Assembly.
Section 59-155-70. Each research university shall submit annual budget requests to the Research Oversight Council in the manner set forth in this section. The budget submitted by each research university must include state funds, federal grants, tuition, and fees other than funds derived wholly from athletic or other student contests, from the activities of student organizations, from approved private practice plans, and from the operation of canteens and bookstores which may be retained by the institutions and be used as determined by the respective governing boards, subject to annual audit by the State. Fees established by the respective governing boards for programs, activities, and projects not covered by appropriations or other revenues may be retained and used by each research university as previously determined by the respective Boards of Trustees, subject to annual audit by the State. The budget request for the research universities must be submitted by the Research Oversight Council to the Governor and appropriate standing committees of the General Assembly in conjunction with the preparation of the annual general appropriations act for the applicable year. Supplemental appropriations requests from a research university must be submitted first to the Research Oversight Council. If the council does not concur in the requests, the affected research university may request a hearing on the requests before the appropriate committee of the General Assembly. The Research Oversight Council may appear at the hearing and present its own recommendations and findings to the committee. The provisions of this paragraph do not apply to capital improvement projects funded in whole or in part before July 30, 1996.
Section 59-155-80. The council shall make such recommendations to the Governor's Office and the General Assembly as to policies, programs, curricula, facilities, administration, and financing of research universities as may be considered desirable. The House Ways and Means Committee, the Senate Finance Committee, and the State Budget and Control Board may refer to the Research Oversight Council for investigation, study, and report requests of research universities for new or additional appropriations for operating and for other purposes and for the establishment of new or expanded programs.
Section 59-155-90. The council shall make reports to the Governor and the General Assembly at least annually on the status and progress of higher education at research universities in the State, with appropriate recommendations.
Section 59-155-100. Military students in the research universities of this State must be included in the count of full-time equivalent students for the purpose of determining the appropriation of each institution. The Research Oversight Council and the Budget and Control Board may make whatever audit adjustments are necessary to carry out this intent.
Section 59-155-110. Funds for the necessary technical, administrative, and clerical assistance and other expenses of the Research Oversight Council, including stationery, must be carried in the annual appropriations act for the State. The members of the council are allowed per diem and mileage as authorized by law for members of boards, commissions, and committees. The sum appropriated for the use of the council must be expended upon warrants signed by the chairman. The amount necessary to fully fund the council must be divided evenly among the research universities. The research universities are instructed to transfer this amount from their authorized or appropriated funds to the council.
Section 59-155-120. (A) An executive director must be appointed by the Research Oversight Council to manage and carry out the duties of the council as prescribed by law and assigned by the council. The executive director is not subject to the State Employee Grievance Procedure Act and may be dismissed without cause.
(B) A professional staff complement must be established by the executive director who shall ensure that there are persons on the staff who have the professional competence and experience to carry out the duties assigned and to ensure that there are persons on the staff who are familiar with the problems and capabilities of all of the principal types of research universities in the State. Provision must be made for persons of high competence and strong professional experience in the areas of academic affairs, public service and extension programs, business and financial affairs, institutional studies and long-range planning, student affairs, research and development, legal affairs, health affairs, and institutional development. The hiring of additional staff members to a position for which funds were not specifically appropriated by the General Assembly requires prior approval by the General Assembly.
Section 59-155-130. The Research Oversight Council may create from among its membership standing committees as necessary. The creation of the committees and their duties must be prescribed by a two-thirds vote of the membership of the council. Special committees may be created and their duties prescribed by a majority vote of the membership of the council.
Section 59-155-140. The provisions of this chapter must not be construed to limit federal and private grants which are made for research and are not connected with teaching programs.
Section 59-155-150. A research university is not authorized to construct or purchase a new permanent facility at a location other than on a currently approved campus or on property immediately contiguous to the campus unless the new location or purchase of improved or unimproved real property has been approved by the Research Oversight Council.
Section 59-155-160. The provisions of this chapter recognize the unique roles that research universities play in educating the public while also serving as engines of economic development for the State. The Research Oversight Council and research universities shall cooperate and collaborate with the Commission on Higher Education, the Department of Commerce, and public and private institutions of higher learning as defined in Section 59-103-5 to better serve the citizens of South Carolina and the nation and provide economic benefits statewide.
Section 59-155-170. A research university 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 research university and according to guidelines established in the plan. The research university 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 59-155-180. A research university may offer educational fee waivers to no more than four percent of the total student body.
Section 59-155-190. Notwithstanding another provision of law, and in recognition and support of the opportunities for economic development presented through the expansion of research activities, a research university 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 research university, 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 research university;
(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 research university 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 such positions shall 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 research university. 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 research university as to whether to hire an employee pursuant to this section are final and not subject to administrative or judicial appeal.
Section 59-155-200. A research university 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 research university."
SECTION 27. Section 2-75-10 of the 1976 Code, as added by Act 356 of 2002, 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 must 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 is responsible for providing annually to the Commission on Higher Education Research Oversight Council 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 Budget and Control Board, which shall must include an audit performed by an independent auditor."
SECTION 28. Section 2-75-70 of the 1976 Code, as added by Act 356 of 2002, is amended to read:
"Section 2-75-70. Staff and support for the operations of the board and the panels must be provided by the Commission on Higher Education Research Oversight Council. The Commission on Higher Education Research Oversight Council shall approve all necessary funds for the prudent operation of the board, including per diem, subsistence, and mileage expenses of board members as provided by law for members of state boards, committees, and commissions, and for the costs and expenses of the panel members. The expenditures authorized by this section must be provided from the fund created by Section 2-75-30 upon approval by the commission Research Oversight Council."
SECTION 29. Section 11-35-710 of the 1976 Code as last amended by Act 264 of 2000, is further amended by adding an appropriately numbered item at the end:
"( ) The construction of a facility on land owned or occupied by a research university, as defined in Section 59-155-10, where the land is under an initial lease to a third party for a term of at least fifteen but not more than forty years, provided that:
(a) the third party is not a foundation or eleemosynary organization affiliated with the research universities;
(b) the lease of the land from the research university to the third party complies with the State Leasing Procedures of the South Carolina Budget and Control Board;
(c) public funds are not used in the construction of the facility;
(d) there is no obligation on the research university to lease space in the facility;
(e) if the research university decides to lease space in the facility, the lease of space complies with the State Leasing Procedures of the South Carolina Budget and Control Board; and (f) at or before the end of the term of the land lease, and at the discretion of the research university with approval of the South Carolina Budget and Control Board, construction on the land will be turned over to the research university or the land restored to a developable condition."
(g) the lease of the land from the research university to the third party does not involve the construction of a health care facility as defined in Section 44-7-130 that has not been approved by the South Carolina Budget and Control Board.
SECTION 30. Section 59-118-30 of the 1976 Code, as last amended by Act 387 of 2000, is further amended to read:
"Section 59-118-30. For purposes of this chapter:
(1) 'Qualifying college or university' means a state-supported, post-secondary two-year or four-year educational institution including a research university, college or university regional campuses campus offering undergraduate, master, or doctoral programs, a technical college under the jurisdiction of the State Board for Technical and Comprehensive Education, and a regional campus of the University of South Carolina.
(2) 'Endowments' mean permanent gifts or donations to the qualifying college or university or its principal foundation including cash, income producing securities, an income producing business, real property, personal property, fixed assets, mortgage notes, and life income gifts or bequests. Research grants and funds received by the institution in the performance of a contractual obligation are not an endowment for purposes of this chapter.
(3) 'Principal foundation' means a foundation designated by the Board of Trustees of the qualifying college or university and registered with the South Carolina Secretary of State.
(4) 'Year' means a state fiscal year beginning on the first day of July and ending the following June thirtieth.
(5) 'Research University' means Clemson University, University of South Carolina - Columbia, and the Medical University of South Carolina."
SECTION 31. Section 59-118-60 of the 1976 Code, as added by Act 155 of 1997, is amended to read:
"Section 59-118-60. (A) There is created the South Carolina Higher Education Matching Gift Fund which shall must be separate and distinct from the state general fund and shall must be administered by the Commission on Higher Education and the Research Oversight Council, as provided in this section, with the funds appropriated by the General Assembly in the general appropriations act of 1997-98 2003-2004. The General Assembly in the annual general appropriations act shall appropriate monies into this matching gift, fund not to exceed five million dollars annually, to be used for the purpose of providing matching state funds to qualifying colleges and universities for purposes stipulated by this chapter. The combined annual total of the match funds appropriated to the University of South Carolina Columbia, Clemson University, and the Medical University of South Carolina cannot exceed sixty percent of the annual appropriation. The disbursement match cannot exceed the amount provided by the South Carolina Higher Education Matching Gift Fund. The State Treasurer shall manage and invest the monies in the Higher Education Matching Gift Fund in the same manner and under the same terms and conditions as other state funds under his control are managed and invested, and disbursements to particular colleges or universities shall be made on warrant and under the direction of the Commission on Higher Education pursuant to the provisions of this chapter.
(B) From the match funds appropriated by the General Assembly to the South Carolina Higher Education Matching Gift Fund, up to forty percent must be appropriated to the qualifying colleges and universities, excluding research universities. Disbursements to particular colleges or universities pursuant to this subsection must be made on warrant and under the direction of the Commission on Higher Education pursuant to the provisions of this chapter.
(C) From the match funds appropriated by the General Assembly to the South Carolina Higher Education Matching Gift Fund, up to sixty percent must be appropriated to the research universities. Disbursements to particular research universities pursuant to this subsection must be made on warrant and under the direction of the Research Oversight Council pursuant to the provisions of this chapter."
SECTION 32. Section 59-118-70 of the 1976 Code, as added by Act 155 of 1997, is amended to read:
"Section 59-118-70. The State of South Carolina, acting through the Commission on Higher Education, shall provide funds to match funds from the qualifying college, university, or principal foundation, to the extent of available funds, from the South Carolina Higher Education Matching Gift Fund established in Section 59-118-60 administered pursuant to Section 59-118-60(B)."
SECTION 33. Chapter 118, Title 59 of the 1976 Code is amended by adding:
"Section 59-118-75. The State of South Carolina, acting through the Research Oversight Council, shall provide funds to match funds from the qualifying college, university, or principal foundation, to the extent of available funds, from the South Carolina Higher Education Matching Gift Fund administered pursuant to Section 59-118-60(C)."
SECTION 34. Section 59-118-80 of the 1976 Code, as added by Act 155 of 1997, is amended to read:
"Section 59-118-80. The state matching gifts authorized in Section 59-118-70 are subject to the following conditions:
(1) qualifying disbursements to which the state matching gift is applied must come from the earnings of the endowment and not from principal or corpus;
(2) the state matching funds must go directly into the qualifying college's or university's operating account to be spent only for the purposes authorized;
(3) the qualifying college or university, excluding research universities, must make application to receive state matching funds administered pursuant to Section 59-118-60(B) on forms and under pursuant to procedures prescribed by the Commission on Higher Education.;
(4) the research university must make application to receive state matching funds administered pursuant to Section 59-118-60(C) on forms and pursuant to procedures prescribed by the Research Oversight Council."
SECTION 35. Section 59-118-90 of the 1976 Code, as added by Act 155 of 1997, is amended to read:
"Section 59-118-90. The Commission on Higher Education shall specify by regulation the procedures for submission and documentation of requests for matching state funds administered pursuant to Section 59-118-60(B)."
SECTION 36. Chapter 118, Title 59 of the 1976 Code is amended by adding:
"Section 59-118-95. The Research Oversight Council shall specify by regulation the procedures for submission and documentation of requests for matching state funds administered pursuant to Section 59-118-60(C)."
SECTION 37. Section 59-118-100 of the 1976 Code, as added by Act 155 of 1997, is amended to read:
"Section 59-118-100. The Commission on Higher Education shall ensure that each qualifying college or university, excluding research universities, receives its proportionate share of the State Higher Education Matching Gift Fund administered pursuant to Section 59-118-60(B), based on the ratio of disbursements. Any Monies in the State Higher Education Matching Gift Fund administered pursuant to Section 59-118-60(B), not distributed in any year shall must be carried forward for the same purposes in future years and all earnings on monies in the State Higher Education Matching Gift Fund administered pursuant to Section 59-118-60(B), must be retained in the fund and used for its stated purposes."
SECTION 38. Chapter 118, Title 59 of the 1976 Code is amended by adding:
"Section 59-118-105. The Research Oversight Council shall ensure that each research university receives its proportionate share of the State Higher Education Matching Gift Fund administered pursuant to Section 59-118-60(C), based on the ratio of disbursements. Monies in the State Higher Education Matching Gift Fund administered pursuant to Section 59-118-60(C), not distributed in any year must be carried forward for the same purposes in future years and earnings on monies in the State Higher Education Matching Gift Fund administered pursuant to Section 59-118-60(C), must be retained in the fund and used for its stated purposes."
SECTION 39. Title 11 of the 1976 Code is amended by adding:
Section 11-51-10. This chapter may be cited as the 'State General Obligation Economic Development and Research University Bond Act'.
Section 11-51-20. As incident to this chapter, the General Assembly finds:
(1) That by Section 4, Act 10 of 1985, the General Assembly ratified an amendment to Article X, Section 13(6)(c), Constitution of this State, 1895. One amendment in Article X, Section 13(6)(c) limits the issuance of general obligation debt of the State such that maximum annual debt service on general obligation bonds of the State, excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, may not exceed five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds.
(2) Article X, Section 13(6)(c), as amended, further provides that the percentage rate of general revenues of the State by which general obligation bond debt service is limited may be reduced to four or increased to seven percent by legislative enactment passed by a two-thirds vote of the total membership of the Senate and a two-thirds vote of the total membership of the House of Representatives.
(3) In order to foster economic development within the State and the advancement of research projects at the research universities, as defined in Section 11-51-30, by providing the necessary funds to defray the costs of certain infrastructure and facilities, as defined in Section 11-51-30, it is in the best interests of the State that the limitation on general obligation debt imposed by Article X, Section 13(6)(c) be increased to five and one-half percent with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation bonds issued to provide infrastructure and facilities for:
(a) economic development within the State; and
(b) the advancement of the research universities;
and that a designated principal amount of general obligation bonds issued pursuant to the existing debt limit and the debt limit as increased hereby be provided additional constitutional authorization pursuant to Article X, Section 13(5) of the Constitution.
Section 11-51-30. As used in this chapter:
(1) 'Bonds' means state general obligation economic development bonds and state general obligation research university bonds.
(2) 'Department' means the State Department of Commerce.
(3) 'Economic development project' means a project as defined in Section 12-44-30(16) in which a total of at least four hundred million dollars is invested by the sponsor and at least four hundred new jobs are created at the project by the sponsor. To qualify as an economic development project for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.
(4) 'Economic development infrastructure' must relate specifically to, but is not required to be located on, the economic development project and means:
(a) land acquisition;
(b) site preparation;
(c) road and highway improvements;
(d) rail spur construction;
(e) water service;
(f) wastewater treatment;
(g) employee training which may include equipment used for this purpose;
(h) environmental mitigation; and
(i) training and research facilities and the necessary equipment for them.
(5) 'Economic development investment' means money expended by the sponsor on capital assets directly related to the economic development project and does not include amounts expended in aid of the project by the State pursuant to this chapter or otherwise, or amounts expended in aid of the project by a county, municipality, or a special purpose district, however financed.
(6) 'Facilities and administration costs' means depreciation and use allowances, interest on debt associated with buildings, equipment and capital improvements, operation and maintenance expenses, library expenses, general administration expenses, departmental administration, sponsored projects administration, and student administration and services.
(7) 'New job' means a full-time job created in this State at an economic development project. The term does not include a job created when an employee is shifted from an existing location in this State to a new or expanded facility whether the transferred job is from, or to, a project of the sponsor or a related person. A related person includes an entity or a person that bears a relationship to the sponsor as described in Section 267 of the Internal Revenue Code of 1986. Full time means a job requiring a minimum of thirty-five hours of an employee's time a week for the entire normal year of sponsor operations or a job requiring a minimum of thirty-five hours of an employee's time a week for a year if the employee was hired initially for or transferred to the project. Two half-time jobs are considered one full-time job. A half-time job is a job requiring a minimum of twenty hours of an employee's time a week otherwise meeting the full-time job requirements.
(8) 'Research Centers for Excellence Review Board' means the board created pursuant to Section 2-75-10.
(9) 'Research infrastructure project' means a project that would advance economic development and create a knowledge based economy, thereby increasing job opportunities, or facilitate and increase externally funded research at the research universities, including, but not limited to, land acquisition, acquisition or construction of buildings, equipment, furnishings, site preparation, road and highway improvements, water and sewer infrastructure and other things necessary or convenient to advance economic development or to facilitate and increase research at the research universities.
(10) 'Research universities' means Clemson University, the Medical University of South Carolina, and the University of South Carolina - Columbia.
(11) 'Sponsor' means a sole proprietor, partnership, corporation of any classification, limited liability company, or association taxable as a business entity or a combination of these entities.
(12) 'State general obligation economic development bonds' or 'economic development bonds' means general obligation bonds of this State issued under the authority of and pursuant to the provision of this chapter in order to defray the cost of economic development infrastructure.
(13) 'State general obligation research university bonds' or 'research university bonds' means general obligation bonds of this State issued under the authority of and pursuant to the provisions of this chapter in order to defray the cost of research infrastructure projects.
Section 11-51-40. To obtain funds for allocation to the department for financing of infrastructure, there may be issued from time to time bonds under the conditions prescribed by this chapter.
Section 11-51-50. (A) Pursuant to Article X, Section 13(6)(c) of the Constitution of this State, 1895, the General Assembly provides that economic development bonds and research university bonds may be issued under this chapter only at such times as the maximum annual debt service on all general obligation bonds of the State, including economic development bonds and research university bonds outstanding and being issued, but excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, will not exceed five and one-half percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds. The State at any time may not issue general obligation bonds, excluding economic development bonds and research university bonds, highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, if at the time of issuance the maximum annual debt service on all such general obligation bonds, outstanding and being issued, exceeds five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds.
(B) With respect to the first four hundred fifty million dollars in principal amount of general obligation bonds issued after the effective date of this chapter within the debt service constraints set forth in subsection (A) above, the General Assembly provides additional constitutional authorization for such bonds pursuant to Article X, Section 13(5), of the Constitution of this State, 1895.
Section 11-51-60. At the time of issuance of economic development bonds and research university bonds pursuant to this chapter, the maximum annual debt service on such bonds outstanding or being issued must not exceed one-half of one percent of the general revenues of this State for the fiscal year next preceding, excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds.
Section 11-51-70. Before issuing economic development bonds, the department shall provide to the Joint Bond Review Committee and the State Budget and Control Board the following:
(1) a statement of the amount then required for allocation to the department to defray the costs of the proposed economic development infrastructure;
(2) a description of the economic development infrastructure for which the bonds are to be issued, including a certification by the secretary of the department that each economic development project to benefit from the expenditure of the proceeds of the economic development bonds consists of an economic development investment in the State of at least four hundred million dollars and at least four hundred new jobs;
(3) a tentative time schedule setting forth the period of time during which the sum requested is to be expended;
(4) a debt service table showing the annual principal and interest requirements for the state general economic development bonds and the state general obligation research university bonds then outstanding; and
(5) a statement of the total amount of the State general economic development bonds and the state general obligation research university bonds issued.
Section 11-51-80. (A) As a condition precedent to the issuance of research university bonds pursuant to the provisions of this chapter, the Research Centers of Excellence Review Board shall certify to the State Budget and Control Board that at least fifty percent of the cost of such research infrastructure project is being provided by private, federal, municipal, county or other local government sources. This portion of the cost may, in the discretion of the Research Centers of Excellence Review Board, be in the form of cash; cash equivalent; buildings including sale-lease back; gifts in kind including, but not limited to, land, roads, water and sewer, and maintenance of infrastructure; facilities and administration costs; equipment; or furnishings.
(B) Before the issuance of research university bonds, the Research Centers of Excellence Review Board shall provide to the Joint Bond Review Committee and the State Budget and Control Board the following:
(1) a description of the research infrastructure project for which research university bonds are requested to be issued;
(2) a certification by the Research Centers of Excellence Review Board that the provisions of subsection (A) have been met, that the source of funding has been identified, and that the research infrastructure project complies with the provisions of this chapter;
(3) the total cost of the research infrastructure project and the principal amount of the research university bonds requested to be issued;
(4) a tentative time schedule setting forth the period of time during which the proceeds of the research university bonds requested to be issued will be expended;
(5) a debt service schedule showing the annual principal and interest requirements, at a projected current rate of interest, on the requested research university bonds;
(6) the total amount of the state general obligation economic development and research university bonds issued pursuant to this chapter; and
(7) a debt service schedule showing the principal and interest requirements for the state general obligation economic development and research university bonds outstanding and the proposed research university bonds at a projected current rate of interest.
Section 11-51-90. Following the receipt of the notification presented either pursuant to Section 11-51-70 or Section 11-51-80 and after approval by the Joint Bond Review Committee, the State Budget and Control Board, by resolution duly adopted, shall effect the issue of economic development bonds and research university bonds, or pending the issue of the bonds, effect the issue of bond anticipation notes pursuant to Chapter 17 of this title.
Section 11-51-100. To effect the issuance of bonds, the State Budget and Control Board shall adopt a resolution providing for the issuance of economic development bonds and research university bonds pursuant to the provisions of this chapter. The authorizing resolution must include:
(1) a schedule showing the aggregate of bonds issued, the annual principal payments required to retire the bonds, and the interest on the bonds;
(2) the amount of bonds proposed to be issued;
(3) a schedule showing future annual principal requirements and estimated annual interest requirements on the bonds to be issued; and
(4) certificates evidencing that the provisions of Sections 11-51-50 and 11-51-60 of this chapter have been or will be met.
Section 11-51-110. The bonds must bear the date and mature at the time that the resolution provides, except that a bond may not mature more than thirty years from its date of issue. The bonds may be in the denominations, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the State Budget and Control Board before their issue. The bonds may bear interest payable at the times and at the rates determined by the State Budget and Control Board.
Section 11-51-120. Bonds issued pursuant to this chapter are exempt from taxation as provided in Section 12-2-50.
Section 11-51-130. Bonds issued pursuant to this chapter must be signed by the Governor and the State Treasurer and attested by the Secretary of State. The Governor, State Treasurer, and Secretary of State may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon each of them. The delivery of the bonds executed and authenticated is valid notwithstanding changes in officers or seal occurring after the execution or authentication.
Section 11-51-140. For the payment of the principal and interest on bonds issued and outstanding pursuant to this chapter there is pledged the full faith, credit, and taxing power of this State, and in accordance with the provisions of Section 13(4), Article X of the Constitution of this State, 1895, the General Assembly allocates on an annual basis sufficient tax revenues to provide for the punctual payment of the principal and interest on the debt authorized by this chapter.
Section 11-51-150. Bonds must be sold by the Governor and the State Treasurer upon sealed proposals, after publication of a summary notice of the sale one or more times at least seven days before the sale, in a financial paper published in New York City which regularly publishes notices of sale of state or municipal bonds. The bonds may be awarded upon the terms and in the manner as prescribed by the State Treasurer. The right is reserved to reject bids and to readvertise the bonds for sale. For the purpose of bringing about successful sales of the bonds, the State Treasurer may do all things ordinarily and customarily done in connection with the sale of state or municipal bonds. Expenses incident to the sale of the bonds must be paid from the proceeds of the sale of the bonds.
Section 11-51-160. The proceeds of the sale of bonds must be received by the State Treasurer and applied by him to the purposes for which issued, except that the accrued interest, if any, may be used to discharge in part the first interest to become due on the bonds, and the premium, if any, must be used to discharge the payment of the first installment of principal to become due on the bonds, but the purchasers of the bonds are not liable for the proper application of the proceeds to the purposes for which they are intended.
Section 11-51-170. It is lawful for all executors, administrators, guardians, and other fiduciaries to invest monies in their hands in bonds issued pursuant to this chapter.
Section 11-51-180. The proceeds received from the issuance of bonds, after deducting the costs of issuance, must be expended only for the purpose of providing infrastructure or of defraying the cost of research infrastructure projects.
In the event a research infrastructure project is used for a purpose other than as approved in by the Research Centers for Excellence Review Board pursuant to Section 11-51-80(B)(2), the research university for which such research infrastructure project was originally established shall reimburse the State a percentage of debt service on the research university bonds issued to finance the debt, the percentage to be equal to the percentage of the research infrastructure project which is used for an unapproved purpose. Amounts reimbursed to the State pursuant to this section must be applied, as directed by the State Budget and Control Board, to the debt service on the applicable bonds, either currently or by way of defeasance, or to the general fund of the State.
SECTION 40. Upon the effective date of Chapter 51 of Title 11 of the 1976 Code, as added by section 39 above, Chapter 41, Title 11 of the 1976 Code is repealed.
SECTION 41. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 42. This act takes effect upon approval by the Governor.
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