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COMMITTEE REPORT
May 23, 2007
H. 3170
Introduced by Reps. Harrell, W.D. Smith, Cato, Chellis, Cooper, Harrison, Walker, Witherspoon, Merrill, Ott, Ballentine, Barfield, Bedingfield, Bingham, Brady, Ceips, Clemmons, Cotty, Dantzler, Davenport, Delleney, Gambrell, Haley, Haskins, Hardwick, Herbkersman, Hinson, Leach, Littlejohn, Limehouse, Loftis, Lowe, Lucas, Mahaffey, Owens, Perry, Pinson, E.H. Pitts, Rice, Sandifer, Scarborough, Simrill, Skelton, D.C. Smith, G.M. Smith, G.R. Smith, J.R. Smith, Spires, Taylor, Thompson, Umphlett, Viers, Whitmire, Young, Bales, Kirsh, Huggins, Bowen, Jefferson, Alexander, R. Brown, Breeland, Bannister, White, Edge, Harvin, Kennedy, Crawford, Jennings, Miller, Gullick, Anthony, Phillips, Coleman, Mitchell, F.N. Smith, J.E. Smith, Clyburn, Sellers, Cobb-Hunter, Agnew, Bowers, Knight, Mulvaney, Neilson, Williams, Branham, Toole, Battle, Duncan, Hodges and Talley
S. Printed 5/23/07--S.
Read the first time February 15, 2007.
To whom was referred a Bill (H. 3170) to amend the Code of Laws of South Carolina, 1976, by adding Section 59-104-25 so as to provide that a resident student who is at least a sophomore, 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 words and inserting:
/ SECTION 1. Chapter 104, Title 59 of the 1976 Code is amended by adding:
"Section 59-104-25. (A) A resident student who has completed at least sixty credit hours and is attending a four-year public or private institution of higher learning in this State, who has a declared major of science or mathematics, or a declared major in education and has been admitted to a teacher education program, and who is receiving a Palmetto Fellows Scholarship for his current year, shall receive an additional Palmetto Fellows Loan equal to the cost of attendance after applying all scholarships or grants not to exceed three thousand three hundred dollars each year for not more than two years of instruction if enrolled in a four-year degree program or for not more than three years of instruction if enrolled in a five-year degree program or enrolled in a 3 plus 2 program. A year is defined as thirty credit hours of instruction or its equivalent each year. To receive the additional Palmetto Fellows Loan each year, a student must receive the underlying Palmetto Fellows Scholarship for that year and must be making satisfactory academic progress each year toward receiving a degree in his science, mathematics, or education major.
(B) The Commission on Higher Education, by regulation, shall define what constitutes a science, mathematics, or education major and qualifying degree for purposes of this section, but at minimum shall include majors and degrees in science or mathematics disciplines, computer science or informational technology, engineering, and health care and related disciplines including medicine and dentistry; provided, that nothing herein prevents a student from changing majors within acceptable science, mathematics, or education disciplines. The Commission on Higher Education, by regulation, shall also define what constitutes enrollment in an accredited graduate program.
(C) This additional Palmetto Fellows Loan, if lost, may be regained in the same manner the underlying Palmetto Fellows Scholarship, if lost, may be regained.
(D)(1) A recipient of the Palmetto Fellows Loan who obtains at least a qualifying degree pursuant to subsection (B) may have up to one hundred percent of the amount of the loan plus interest on the loan canceled. The loan is canceled at a rate of twenty percent of the total principal amount of the loan plus interest on the unpaid balance for each complete year a recipient with a science or mathematics degree is employed in this State and files a South Carolina residential income tax return, or for each complete year a recipient with an education degree is employed as a certified teacher in this State and files a South Carolina residential income tax return. The loan must be canceled beginning from the actual date of employment of a recipient. A recipient of a loan shall notify the South Carolina Student Loan Corporation and provide supporting documentation verifying employment within six months of graduation if he is entitled to have his loan canceled. A recipient seeking loan cancellation also shall provide the South Carolina Student Loan Corporation with evidence that he has filed taxes in South Carolina by May first of each year.
(2) Notwithstanding subsection (D)(1), if a recipient enrolls in an accredited graduate program within five years and six months following undergraduate graduation and is otherwise entitled to have his loan canceled, the recipient remains entitled to have his loan canceled. During the time the recipient is enrolled in an accredited graduate program, the payments on the loan, including principal and interest, shall be deferred. A recipient seeking loan deferment shall provide the South Carolina Student Loan Corporation with evidence that he has enrolled in an accredited graduate program. Within six months of the recipient no longer being enrolled in an accredited graduate program, the recipient shall notify the South Carolina Student Loan Corporation and provide supporting documentation verifying employment if he is entitled to have his loan canceled. A recipient seeking loan cancellation also shall provide the South Carolina Student Loan Corporation with evidence that he has filed taxes in South Carolina by May first of each year.
(3) In case of failure to make a scheduled repayment of any installment, failure to apply for cancellation of deferment of the loan on time, failure by a recipient to notify the commission within thirty days that he no longer meets the employment, graduate education, or residency requirements of subsection (D)(1), or noncompliance by a borrower with the intent of the loan, the entire unpaid indebtedness including accrued interest, at the option of the commission, shall become immediately due and payable in accordance with regulations promulgated pursuant to this subsection and subject to the terms of the promissory note. A recipient shall execute the necessary legal documents to secure his obligation and the terms and conditions of the loan.
(4) Failure by a recipient to inform the commission in writing within thirty days that he no longer meets the employment, graduate education, or residency requirements of subsection (D)(1) subjects a recipient to liability for administrative costs incurred by the commission in determining the actual date of termination for purposes of applying interest charges.
(5) The loan program is to be administered by the South Carolina Student Loan Corporation. Funds generated from repayments to the loan program must be retained in a separate account and utilized as a revolving account for the purpose that the funds were originally appropriated.
(6) The Commission on Higher Education shall promulgate regulations to implement this loan program."
SECTION 2. Chapter 149, Title 59 of the 1976 Code is amended by adding:
"Section 59-149-15. (A) A resident student who has completed at least sixty credit hours and is attending a four-year public or private institution of higher learning in this State, who has a declared major of science or mathematics, or a declared major in education and has been admitted to a teacher education program, and who is receiving a LIFE Scholarship for his current year shall receive an additional LIFE Loan equal to the cost of attendance after applying all scholarships or grants not to exceed two thousand five hundred dollars each year for not more than two years of instruction if enrolled in a four-year degree program or for not more than three years of instruction if enrolled in a five-year degree program or enrolled in a 3 plus 2 program. A year is defined as thirty credit hours of instruction or its equivalent each year. To receive the additional LIFE Loan each year, a student must receive the underlying LIFE Scholarship for that year and must be making satisfactory academic progress each year toward receiving a degree in his science, mathematics, or education major.
(B) The Commission on Higher Education, by regulation, shall define what constitutes a science, mathematics, or education major and qualifying degree for purposes of this section, but at a minimum shall include majors and degrees in science or mathematics disciplines, computer science or informational technology, engineering, and health care and related disciplines including medicine and dentistry; provided, that nothing herein prevents a student from changing majors within acceptable science, mathematics, or education disciplines. The Commission on Higher Education, by regulation, shall also define what constitutes enrollment in an accredited graduate program.
(C) This additional LIFE Loan, if lost, may be regained in the same manner the underlying LIFE Scholarship, if lost, may be regained.
(D)(1) A recipient of the Life Loan who obtains at least a qualifying degree pursuant to subsection (B) may have up to one hundred percent of the amount of the loan plus interest on the loan canceled. The loan is canceled at a rate of twenty percent of the total principal amount of the loan plus interest on the unpaid balance for each complete year a recipient with a science or mathematics degree is employed in this State and files a South Carolina residential income tax return, or for each complete year a recipient with an education degree is employed as a certified teacher in this State and files a South Carolina residential income tax return. The loan must be canceled beginning from the actual date of employment of a recipient. A recipient of a loan shall notify the South Carolina Student Loan Corporation and provide supporting documentation verifying employment within six months of graduation if he is entitled to have his loan canceled. A recipient seeking loan cancellation also shall provide the South Carolina Student Loan Corporation with evidence that he has filed taxes in South Carolina by May first of each year.
(2) Notwithstanding subsection (D)(1), if a recipient enrolls in an accredited graduate program within five years and six months following undergraduate graduation and is otherwise entitled to have his loan canceled, the recipient remains entitled to have his loan canceled. During the time the recipient is enrolled in an accredited graduate program, the payments on the loan, including principal and interest, shall be deferred. A recipient seeking loan deferment shall provide the South Carolina Student Loan Corporation with evidence that he has enrolled in an accredited graduate program. Within six months of the recipient no longer being enrolled in an accredited graduate program, the recipient shall notify the South Carolina Student Loan Corporation and provide supporting documentation verifying employment if he is entitled to have his loan canceled. A recipient seeking loan cancellation also shall provide the South Carolina Student Loan Corporation with evidence that he has filed taxes in South Carolina by May first of each year.
(3) In case of failure to make a scheduled repayment of any installment, failure to apply for cancellation of deferment of the loan on time, failure by a recipient to notify the commission within thirty days that he no longer meets the employment, graduate education, or residency requirements of subsection (D)(1), or noncompliance by a borrower with the intent of the loan, the entire unpaid indebtedness including accrued interest, at the option of the commission, shall become immediately due and payable in accordance with regulations promulgated pursuant to this subsection and subject to the terms of the promissory note. A recipient shall execute the necessary legal documents to secure his obligation and the terms and conditions of the loan.
(4) Failure by a recipient to inform the commission in writing within thirty days that he no longer meets the employment, graduate education, or residency requirements of subsection (D)(1) subjects a recipient to liability for administrative costs incurred by the commission in determining the actual date of termination for purposes of applying interest charges.
(5) The loan program is to be administered by the South Carolina Student Loan Corporation. Funds generated from repayments to the loan program must be retained in a separate account and utilized as a revolving account for the purpose that the funds were originally appropriated.
(6) The Commission on Higher Education shall promulgate regulations to implement this loan program."
SECTION 3. This act takes effect upon approval by the Governor, and applies beginning with the academic year beginning in the fall of 2007. /
Renumber sections to conform.
Amend title to conform.
JOHN E. COURSON for Committee.
EXPLANATION OF IMPACT:
Cost estimates below are for the first year of implementation and assume all qualifying students would opt to apply for the loan. State funds needed in subsequent years depend on the number of students who would apply for the loan and the amount of repayments to the loan program, which would be used to offset expenses in the second and subsequent years.
Section 1 - (59-104-25)
CHE estimates the annual impact of this section using the total loan amount of $3,300 to be $3,422,100 (1,037 students x $3,300). The student estimate was based on Fall 2005 Palmetto Fellows scholarship data with an estimated growth factor of 10% to account for students who are undecided or undeclared with regard to a major, but who may choose to major in one of there areas based on the additional aid available.
Section 2 - (59-149-15)
The estimated annual impact of this section using the total loan amount of $2,500 is $11,240,000 (4,496 students x $2,500). The estimate is based on Fall 2005 LIFE scholarship data with an estimated growth factor of 10% to account for students who are undecided or undeclared with regard to a major, but who may choose to major in one of there areas based on the additional aid available.
Recapitulation
Maximum direct loan expenses are estimated to be $14,662,100 the first year of implementation. However, it should be noted that CHE has no data upon which to estimate the cost associated with those provisions of the bill allowing students to qualify to receive the loan for an additional year if enrolled in a five-year degree program. The impact in subsequent years is dependent on how much of the loans are not forgiven which results in payments back to the Student Loan Corporation that would offset cost of additional loans or administration in subsequent years.
CHE estimates administrative cost for the Student Loan Corporation to be $1,000,000 annually based on that entity's experience in administering the Teacher Loan program. However, this level of administrative cost may not be realized until the program has fully matured in future years. The impact on the General Fund of the State is at the General Assembly's discretion. This initiative could be funded with state general funds and/or Education Lottery funds.
Approved By:
Don Addy
Office of State Budget
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-104-25 SO AS TO PROVIDE THAT A RESIDENT STUDENT WHO IS AT LEAST A SOPHOMORE ATTENDING A PUBLIC OR PRIVATE INSTITUTION IN THIS STATE, MAJORING IN SCIENCE OR MATHEMATICS, AND RECEIVING A PALMETTO FELLOWS SCHOLARSHIP SHALL RECEIVE AN ADDITIONAL PALMETTO FELLOWS SCHOLARSHIP STIPEND FOR THE REMAINDER OF HIS UNDERGRADUATE TERM IF HE MEETS CERTAIN CONDITIONS INCLUDING MAKING SATISFACTORY ACADEMIC PROGRESS TOWARD RECEIVING AN UNDERGRADUATE DEGREE IN SCIENCE OR MATHEMATICS, AND TO PROVIDE THAT A SCIENCE OR MATHEMATICS MAJOR INCLUDES AN ENGINEERING MAJOR; AND BY ADDING SECTION 59-149-15 SO AS TO PROVIDE THAT A RESIDENT STUDENT WHO IS AT LEAST A SOPHOMORE ATTENDING A PUBLIC OR PRIVATE INSTITUTION IN THIS STATE, MAJORING IN SCIENCE OR MATHEMATICS, AND RECEIVING A LIFE SCHOLARSHIP SHALL RECEIVE AN ADDITIONAL LIFE SCHOLARSHIP STIPEND FOR THE REMAINDER OF HIS UNDERGRADUATE TERM IF HE MEETS CERTAIN CONDITIONS INCLUDING MAKING SATISFACTORY ACADEMIC PROGRESS TOWARD RECEIVING AN UNDERGRADUATE DEGREE IN SCIENCE OR MATHEMATICS, AND TO PROVIDE THAT A SCIENCE OR MATHEMATICS MAJOR INCLUDES AN ENGINEERING MAJOR.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 104, Title 59 of the 1976 Code is amended by adding:
"Section 59-104-25. (A) A resident student who is at least a sophomore attending a four-year public or private institution of higher learning in this State majoring in science or mathematics as defined below and who is receiving a Palmetto Fellows Scholarship for his current year shall receive an additional Palmetto Fellows Scholarship stipend equal to the cost of attendance after applying all other scholarships or grants not to exceed three thousand three hundred dollars each year for not more than three additional years of instruction including his sophomore year if enrolled in a four-year degree program or for not more than four additional years of instruction including his sophomore year if enrolled in a five-year degree program or enrolled in a 3 plus 2 program. A year is defined as thirty credit hours of instruction or its equivalent each year. To receive the additional Palmetto Fellows Scholarship stipend each year, the student must receive the underlying Palmetto Fellows Scholarship for that year and must be making acceptable progress each year toward receiving a degree in his science or mathematics major. In addition, during his freshman year, the student is required to have successfully completed a total of at least fourteen credit hours of instruction in mathematics and life and physical science courses with a minimum of six hours in mathematics and a minimum of six hours in life and physical science including one laboratory course. For purposes of meeting the required minimum level of instruction in mathematics and life and physical science courses during a student's freshman year, advanced placement courses in mathematics and life and physical sciences taken in high school on which the student scored high enough on the advanced placement test to receive credit at his institution and for which he received credit count toward the fulfillment of this minimum requirement.
(B) The Commission on Higher Education by regulation shall define what constitutes a science or mathematics major but at minimum shall include majors in science or mathematics disciplines, computer science or informational technology, engineering, science education, math education, and health care and related disciplines including medicine and dentistry; provided, that nothing herein prevents a student from changing majors within acceptable science or mathematics disciplines. Additionally, the Commission on Higher Education shall annually communicate with high school guidance counselors regarding the list of qualifying majors.
(C) This additional Palmetto Fellows Scholarship stipend if lost may be regained in the same manner the underlying Palmetto Fellows Scholarship if lost may be regained.
(D) In addition, the amount of the Palmetto Fellows Scholarship for recipients who do not receive the enhanced stipend provided by this section beginning with the 2007 academic year shall be increased to an amount equal to that received by a LIFE scholarship recipient also receiving the enhanced stipend provided by Section 59-149-15."
SECTION 2. Chapter 149, Title 59 of the 1976 Code is amended by adding:
"Section 59-149-15. (A) A resident student who is at least a sophomore attending a four-year public or private institution of higher learning in this State majoring in science or mathematics as defined below and who is receiving a LIFE Scholarship for his current year shall receive an additional LIFE Scholarship stipend equal to the cost of attendance after applying all other scholarships or grants not to exceed two thousand five hundred dollars each year for not more than three additional years of instruction including his sophomore year if enrolled in a four-year degree program or for not more than four additional years of instruction including his sophomore year if enrolled in a five-year degree program or enrolled in a 3 plus 2 program. In addition, during his freshman year, the student is required to have successfully completed a total of at least fourteen credit hours of instruction in mathematics and life science courses with a minimum of six hours in mathematics and a minimum of six hours in science including one laboratory course. A year is defined as thirty credit hours of instruction or its equivalent each year. To receive the additional LIFE Scholarship stipend each year, the student must receive the underlying LIFE Scholarship for that year and must be making acceptable progress each year toward receiving a degree in his science or mathematics major. For purposes of meeting the required minimum level of instruction in mathematics and life and physical science courses during a student's freshman year, advanced placement courses in mathematics and life and physical sciences taken in high school on which the student scored high enough on the advanced placement test to receive credit at his institution and for which he received credit count toward the fulfillment of this minimum requirement.
(B) The Commission on Higher Education by regulation shall define what constitutes a science or mathematics major but at a minimum shall include majors in science or mathematics disciplines, computer science or informational technology, engineering, science education, math education, and health care and related disciplines including medicine and dentistry; provided, that nothing herein prevents a student from changing majors within acceptable science or mathematics disciplines. Additionally, the Commission on Higher Education shall annually communicate with high school guidance counselors regarding the list of qualifying majors.
(C) This additional LIFE Scholarship stipend if lost may be regained in the same manner the underlying LIFE Scholarship if lost may be regained."
SECTION 3. Section 59-150-370 of the 1976 Code is amended to read:
"Section 59-150-370. (A) SC HOPE Scholarships are hereby established and are provided by the State. These scholarships are authorized in an amount of up to two thousand five hundred dollars, plus a one hundred fifty three hundred dollar book allowance to cover the cost of attendance, as defined by the Commission on Higher Education by regulation, during the first year of attendance only, to an eligible student attending a four-year public or independent institution as defined in subsection (B) who does not also qualify for a LIFE Scholarship or a Palmetto Fellows Scholarship.
(B) For purposes of this chapter, a 'public or independent institution' that a student may attend to receive a SC HOPE Scholarship includes the following:
(1) a South Carolina four-year public institution as defined in Section 59-103-5 and a four-year independent institution as defined in Section 59-113-50;
(2) a public or independent bachelor's level institution chartered before 1962 whose major campus and headquarters are located within South Carolina; or an independent bachelor's level institution which is accredited by the Southern Association of Colleges and Secondary Schools; or an independent bachelor's level institution which is accredited by the New England Association of Colleges and Schools. Institutions whose sole purpose is religious or theological training, or the granting of professional degrees do not meet the definition of 'public or independent institution' for purposes of this chapter.
(C) A student is eligible to receive a SC HOPE Scholarship if he meets the criteria for receiving and maintaining the Legislative Incentives for Future Excellence (LIFE) Scholarship except that a minimum Scholastic Aptitude Test (SAT) or ACT score and requisite class rank are not required for eligibility for the SC HOPE Scholarship. These SC HOPE Scholarships must be granted and awarded as provided in this section.
(D) These SC HOPE Scholarships in combination with all other grants and scholarships must not exceed the cost of attendance at the particular institutions referenced in subsection (B).
(E) The Commission on Higher Education must promulgate regulations and establish procedures to administer the provisions of this section.
(F) All institutions participating in the SC HOPE Scholarship Program must report their enrollment and other relevant data as solicited by the Commission on Higher Education, which may audit these institutions to ensure compliance with this provision.
(G)(1) A resident student who is at least a sophomore attending a four-year public or private institution of higher learning in this State, majoring in science or mathematics as defined below, and who received a HOPE Scholarship for his first year of attendance, shall receive the HOPE Scholarship and book allowance in the amounts pursuant to subsection (A) for his second year of attendance. A year is defined as thirty credit hours of instruction or its equivalent. To receive the HOPE Scholarship and book allowance for his second year of attendance, the student is required to have successfully completed a total of at least fourteen credit hours of instruction in mathematics and life and physical science courses with a minimum of six hours in mathematics and a minimum of six hours in life and physical science including one laboratory course. For purposes of meeting the required minimum level of instruction in mathematics and life and physical science courses during a student's first year, advanced placement courses in mathematics and life and physical sciences taken in high school on which the student scored high enough on the advanced placement test to receive credit at his institution and for which he received credit count toward the fulfillment of this minimum requirement.
(2) The Commission on Higher Education by regulation shall define what constitutes a science or mathematics major but at minimum shall include majors in science or mathematics disciplines, computer science or informational technology, engineering, and health care and related disciplines including medicine and dentistry; provided, that nothing herein prevents a student from changing majors within acceptable science or mathematics disciplines."
SECTION 4. This act takes effect upon approval by the Governor, and applies beginning with the academic year beginning in the fall of 2007.
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