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Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
February 14, 2007
S. 322
Introduced by Senators Hayes, Hawkins, Vaughn, Peeler, Leatherman, Leventis, O'Dell, McConnell, Cromer, Patterson, Knotts, Land, Mescher, Martin and Alexander
S. Printed 2/14/07--S. [SEC 2/15/07 2:09 PM]
Read the first time January 24, 2007.
To whom was referred a Bill (S. 322) to amend Chapter 114, Title 59, Code of Laws of South Carolina, 1976, relating to the South Carolina National Guard Tuition Assistance Act, so as to enact, 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, SECTION 2, page 6, by striking line 2 and inserting:
/ pursuant to the provisions under which the loan program began. Any funds remaining in the loan repayment program, provided for in subsection (A), shall be transferred to the College Assistance Program in accordance with regulations prescribed by the commission. /
Amend the bill further, as and if amended, SECTION 1, page 2, by striking lines 22 through 27 and inserting:
/ (4) 'Eligible institution' shall mean means:
(a) any institution of higher learning located in this State and any post-secondary business or technical education school located in this State a public institution of higher learning as defined in Section 59-103-5 and an independent institution of higher learning as defined in Section 59-113-50; and
(b) any vocational or training school which shall have received the approval of the Adjutant General 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 was incorporated in its original charter in 1962, was granted a license to operate in 1997 by the Commission on Higher Education, has continued to maintain a campus in South Carolina, and is accredited by the Southern Association of Colleges and Secondary 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. /
Renumber sections to conform.
Amend title to conform.
HUGH K. LEATHERMAN, SR. for Committee.
EXPLANATION OF IMPACT:
Commission on Higher Education (CHE)
CHE estimates the maximum net impact on the state associated with enactment of this bill at $1,086,363. Costs associated with the newly created National Guard College Assistance Program are estimated at $2,915,550. There are currently 589 guardsmen enrolled in our state's colleges according to the Adjutant General's office. If each guardsman received a grant of $4,500, the maximum anticipated cost for grants is $2,650,500 (589 x $4,500) plus an additional 10 percent of $265,050 for CHE to administer the program (as allowed under section 59-114-65 of the bill). The state currently provides $1,829,187 ($1.7 million Lottery plus $129,187 general funds) in funding for the existing National Guard Loan Program. Since this legislation discontinues that program to new enrollees and since funding is already sufficient to meet the obligations for current participants, no future funding for this program would be required. Existing funding could be diverted to the newly created College Assistance Program thereby resulting in a net impact on the state of $1,086,363 ($2,915,550 - $1,829,187). 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.
Adjutant General's Office
The office reports this bill will have no impact on the General Fund of the State or on federal and/or other funds.
Approved By:
Don Addy
Office of State Budget
TO AMEND CHAPTER 114, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA NATIONAL GUARD TUITION ASSISTANCE ACT, SO AS TO ENACT THE "SOUTH CAROLINA NATIONAL GUARD COLLEGE ASSISTANCE PROGRAM ACT", TO DEFINE CERTAIN TERMS, TO PROVIDE FOR COLLEGE ASSISTANCE PROGRAM GRANTS TO BE ADMINISTERED BY THE COMMISSION ON HIGHER EDUCATION, TO PROVIDE ELIGIBILITY REQUIREMENTS TO QUALIFY FOR THE GRANTS, TO PROVIDE FOR FUNDING TO BE APPROPRIATED BY THE GENERAL ASSEMBLY, AND TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION SHALL PROMULGATE REGULATIONS; TO AMEND SECTION 59-111-75, RELATING TO THE LOAN REPAYMENT PROGRAM FOR MEMBERS OF THE NATIONAL GUARD SERVING IN AREAS OF CRITICAL NEED, SO AS TO PROVIDE THAT THE LOAN REPAYMENT PROGRAM MAY NOT ACCEPT NEW PARTICIPANTS AND PROVIDE THAT MEMBERS OF THE SOUTH CAROLINA NATIONAL GUARD WHO HAVE RECEIVED LOANS BEFORE THE 2007-08 ACADEMIC YEAR MAY CONTINUE TO RECEIVE THEIR LOANS AND HAVE THEIR LOANS FORGIVEN PURSUANT TO THE PROVISIONS UNDER WHICH THE LOAN PROGRAM BEGAN; AND TO REPEAL ARTICLE 6, CHAPTER 111, TITLE 59, RELATING TO ONE-HALF TUITION FOR MEMBERS OF THE SOUTH CAROLINA NATIONAL GUARD.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 114, Title 59 of the 1976 Code is amended to read:
Section 59-114-10. This chapter may be cited as the 'South Carolina National Guard Tuition College Assistance Program Act'.
Section 59-114-20. As used in this chapter:
(1) 'Adjutant General' shall mean the South Carolina Adjutant General.
(2) 'Academic year' shall mean any means a period of three hundred sixty-five days beginning with the first day of enrollment for a course of instruction by a National Guard member.
(2) 'College assistance program' means the South Carolina National Guard College Assistance Program.
(3) 'Commission' means the South Carolina Commission on Higher Education.
(4) 'Eligible institution' shall mean means:
(a) any an institution of higher learning located in this State and any a post-secondary business or technical education school located in this State; and
(b) anya vocational or training school which shall have that has received the approval of the Adjutant General commission.
(4)(5) 'National Guard' shall mean means South Carolina Army or Air National Guard.
(5)(6) 'Tuition and fees' shall mean means the amount charged for registering or for credit hours of instruction, and shall not include other fees, charges or costs of textbooks, and other fees and charges associated with attendance at an eligible institution as approved by the commission.
Section 59-114-30. Qualifying members of the National Guard may receive tuition college assistance program grants, not to exceed one thousand dollars per twelve semester hours. No member may qualify for these grants for more than four separate academic years, and a up to an amount equal to one hundred percent of college tuition and fees, provided, however, that a grant given pursuant to this chapter may not exceed four thousand five hundred dollars each academic year at an eligible institution. A member may not qualify for college assistance program grants for more than one hundred thirty semester hours or related quarter hours or for more than four years. A new application must be submitted for each separate academic year for which tuition assistance is sought.
Section 59-114-40. (A) Members of the National Guard enrolled or planning to enroll in an eligible institution may apply to the Adjutant General for tuition commission for a college assistance program grant. To qualify, an applicant must be seeking:
(1) trade or vocational training;
(2) to attain a two-year associate degree;
(3) to attain a four-year baccalaureate degree.
Additionally, an applicant must have a minimum National Guard service obligation of two years beyond the end of the academic period for which tuition is requested or must agree in writing to formally incur this obligation upon approval of the tuition assistance grant and must meet other criteria established by the Adjutant General by regulation promulgated pursuant to this chapter.
(1) be in good standing with the active National Guard at the beginning of each academic year and remain a member in good standing with the active National Guard throughout the entire academic year for which benefits are payable;
(2) have valid tuition and fee expenses from an eligible institution;
(3) maintain a cumulative grade point average that the institution requires to remain as a student; and
(4) satisfy additional eligibility requirements as may be promulgated by the commission.
(B) Individuals joining the National Guard become eligible for college assistance program grants on the day of enlistment. Enlisted personnel shall continue their service in the National Guard during the term of the courses covered by the benefit received. Officers shall continue their service with the National Guard for at least four years after course completion.
(C) National Guard members receiving a full Reserve Officer's Training Corps (ROTC) scholarship are not eligible for college assistance program grants.
Section 59-114-50. The Adjutant General shall administer this program. He may delegate authority to his subordinates within the South Carolina Military Department as is necessary to implement the program. The Adjutant General shall promulgate regulations specifying additional eligibility criteria for tuition assistance grants which shall include, but not be limited to, prior National Guard service requirements, required levels of military occupational skill proficiency, and recommendations required of an applicant's National Guard supervisors. Additionally, regulations shall be promulgated setting forth standards of academic performance to be met by persons receiving assistance in order to qualify for assistance in future years and, as necessary, specifically approving vocational and training schools as eligible institutions.
Section 59-114-60. The Adjutant General shall have authority to enter into agreements with eligible institutions, with concurrence of the State Budget and Control Board, for rebating or carrying forward credit on accounts of qualifying members who because of illness, injury or other circumstances withdraw from course work prior to completion of the tuition period.
Section 59-114-65. Grants provided pursuant to this chapter are subject to the availability of funds appropriated by the General Assembly. Up to ten percent of the amount appropriated to the college assistance program may be used to defray administrative costs incurred by the commission associated with the implementation of this chapter.
Section 59-114-70. All tuition assistance payments must be made directly to the qualifying applicant who demonstrates to the Adjutant General successful completion of twelve semester hours or a pro rata share of twelve semester hours at an eligible institution as defined by this chapter.
Section 59-114-75. Tuition assistance grants may not be made to qualifying members of the National Guard under the provisions of this chapter after June 30, 2001. The commission shall administer the provisions of this chapter and shall promulgate regulations necessary to implement the provisions of this chapter."
SECTION 2. Section 59-111-75 of the 1976 Code is amended to read:
"Section 59-111-75. (A) The Commission on Higher Education, in consultation with the staff of the South Carolina Student Loan Corporation, shall develop a loan repayment program through which talented and qualified state residents may attend state public or private colleges and universities for the purpose of providing incentives for enlisting or remaining in the South Carolina National Guard in areas of critical need. Areas of critical need must be defined annually for that purpose by the Commission on Higher Education in consultation with the State Adjutant General. The Commission on Higher Education shall promulgate appropriate regulations to set forth the terms of the loan repayment program. The regulations must define limitations on monetary repayment amounts, successful participation within the National Guard, successful school matriculation, and other requirements for participation in the loan repayment program. In case of failure to complete the term of enlistment, failure to participate successfully in the National Guard, noncompliance by a borrower with the terms of the loan, or failure to comply with regulations of the program, the borrowers participation in the loan repayment program may be terminated and the borrower remains subject to those provisions as provided in the loan documents. The borrower shall execute the necessary legal documents to reflect his obligation to the lending entity and the terms and conditions of the loan. The loan program, as implemented in this section, must be administered by a separate student loan provider. Of the funds appropriated by the General Assembly for the loan repayment program, these funds must be retained in a separate account and used on a revolving basis for purposes of the loan repayment program and its administration. The State Treasurer shall disburse funds from this account as requested by the Commission on Higher Education and upon warrant of the Comptroller General; provided, however, that no more than ten percent of the funds annually appropriated to the Commission on Higher Education for this program may be used for the cost of administering the program. Funds in the account and earnings from it may be carried forward in succeeding fiscal years and used for the purposes of the loan repayment program. The Commission on Higher Education shall review the loan program annually and report to the General Assembly on its progress and results.
(B) Beginning with the 2007-08 academic year, the loan repayment program established pursuant to this section may not accept new participants. Members of the National Guard who have received loans pursuant to this section before the 2007-08 academic year may continue to receive their loans, including loans for subsequent academic years, and have their loans forgiven pursuant to the provisions under which the loan program began."
SECTION 3. Article 6, Chapter 111, Title 59 of the 1976 Code is repealed.
SECTION 4. This act takes effect upon approval by the Governor and applies beginning with the 2007-08 academic year.
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