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ACT359

ACT359

Product of the Legislative Printing Agency-LPITR

(Text matches printed bills. Document has been reformatted to meet WorldWide Web specifications.)

(A359, R368, S1195)

AN ACT TO AMEND SECTION 59-103-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976,RELATING TO THE COMMISSION ON HIGHER EDUCATION, SO AS TO REVISE THE MANNER IN WHICHCERTAIN MEMBERS THEREOF SHALL BE APPOINTED; TO AMEND THE 1976 CODE BY ADDING SECTION59-103-15 SO AS TO DEFINE THE MISSION OF HIGHER EDUCATION IN SOUTH CAROLINA AND OF EACHTYPE OF PUBLIC INSTITUTION OF HIGHER LEARNING; TO AMEND SECTION 59-103-20, RELATING TOSTUDIES OF INSTITUTIONS OF HIGHER LEARNING, SO AS TO PROVIDE THAT THE COMMISSION SHALL BERESPONSIBLE FOR A COORDINATED, EFFICIENT, AND RESPONSIVE HIGHER EDUCATION SYSTEM IN THISSTATE AND TO PROVIDE FOR THE RESPONSIBILITIES OF THE COMMISSION IN THIS REGARD; BY ADDINGSECTION 59-103-30 SO AS TO ESTABLISH CRITICAL SUCCESS FACTORS IN PRIORITY ORDER FORACADEMIC QUALITY IN THE INSTITUTIONS OF HIGHER LEARNING IN THIS STATE AND THE PERFORMANCEINDICATORS BY WHICH THESE SUCCESS FACTORS CAN BE MEASURED; TO AMEND SECTION 59-103-35, ASAMENDED, RELATING TO THE SUBMISSION OF THE BUDGETS OF PUBLIC INSTITUTIONS OF HIGHERLEARNING AND THE APPROVAL AND REVIEW OF THE PROGRAMS OF THESE INSTITUTIONS, SO AS TOREVISE THE MANNER IN WHICH THE PUBLIC HIGHER EDUCATION SYSTEM'S AND EACH INSTITUTION'SANNUAL BUDGET REQUEST IS DETERMINED, TO PROVIDE CERTAIN EXCEPTIONS FOR CAPITAL IMPROVEMENTPROJECTS FUNDED BEFORE JULY 30, 1996, AND TO REVISE THE COMMISSION'S RESPONSIBILITIES WITHREGARD TO AN INSTITUTION'S PROGRAMS; TO AMEND SECTION 59-103-45, RELATING TO THE DUTIESAND FUNCTIONS OF THE COMMISSION ON HIGHER EDUCATION, SO AS TO REQUIRE THE COMMISSION TODEVELOP STANDARDS FOR AND MEASUREMENT MECHANISMS OF THESE PERFORMANCE INDICATORS, DIRECTTHE COMMISSION TO BASE THE HIGHER EDUCATION FUNDING FORMULA ON AN INSTITUTION'SACHIEVEMENT OF THESE STANDARDS, PERMIT THE COMMISSION TO REDUCE, EXPAND, OR CONSOLIDATEANY INSTITUTION INCLUDING THOSE WHICH DO NOT MEET THE STANDARDS OF ACHIEVEMENT, ANDBEGINNING JULY 1, 1999, TO CLOSE SUCH INSTITUTIONS WHICH DO NOT MEET THESE STANDARDS, TOPROVIDE THAT THE PROCESS TO BE FOLLOWED FOR THE CLOSURE, REDUCTION, EXPANSION, ORCONSOLIDATION OF AN INSTITUTION SHALL BE AS PROMULGATED IN REGULATIONS OF THE COMMISSIONWHICH SHALL BE SUBMITTED TO AND APPROVED BY THE GENERAL ASSEMBLY, TO REQUIRE THECOMMISSION TO REVIEW AND APPROVE EACH INSTITUTIONAL MISSION STATEMENT, TO PROVIDE THAT THECOMMISSION SHALL DEFINE MINIMUM ACADEMIC EXPECTATIONS FOR PROSPECTIVE POST-SECONDARYSTUDENTS AND COMMUNICATE THESE EXPECTATIONS TO THE STATE BOARD OF EDUCATION, AND TOPROVIDE THAT THE COMMISSION SHALL ENSURE ACCESS AND EQUITY OPPORTUNITIES AT EACHINSTITUTION FOR ALL CITIZENS OF THIS STATE; TO AMEND SECTION 59-103-60, RELATING TORECOMMENDATIONS TO THE BUDGET AND CONTROL BOARD AND THE GENERAL ASSEMBLY BY THECOMMISSION, SO AS TO MAKE TECHNICAL CORRECTIONS; BY ADDING SECTION 59-103-65 SO AS TOPROVIDE FOR THE MANNER IN WHICH AN INSTITUTION SHALL BE CLOSED IF AN INSTITUTION BEGINNINGJULY 1, 1999, IS CLOSED BY THE COMMISSION; TO AMEND SECTION 59-103-110, RELATING TOAPPROVAL OF NEW CONSTRUCTION AT PUBLIC INSTITUTIONS OF HIGHER LEARNING, SO AS TO REVISETHE MANNER IN WHICH A PUBLIC INSTITUTION'S CONSTRUCTION OR PURCHASE OF CERTAIN NEWFACILITIES OR REAL PROPERTY IS APPROVED, AND TO DELETE CERTAIN LANGUAGE RELATING TO THEAPPLICABILITY OF THE SECTION; TO AMEND CHAPTER 104 OF TITLE 59, RELATING TO INITIATIVESFOR RESEARCH AND ACADEMIC EXCELLENCE, SO AS TO REVISE SUCH PROVISIONS TO INCORPORATEAPPROPRIATE REFERENCES TO THE PERFORMANCE INDICATORS FOR ACADEMIC SUCCESS ABOVE-REFERENCEDAND REFERENCES TO OTHER DUTIES AND FUNCTIONS CONFERRED ABOVE ON THE COMMISSION, AND TODELETE THE REQUIREMENT THAT A POST-SECONDARY INSTITUTION PROVIDE HALF THE COST OF APALMETTO FELLOWS SCHOLARSHIP; TO AMEND SECTION 59-101-350, RELATING TO THE ANNUAL REPORTTO THE GOVERNOR AND GENERAL ASSEMBLY BY THE STATE COMMISSION ON HIGHER EDUCATION, SO AS TOREVISE THE CONTENTS OF THIS REPORT AND WHAT INSTITUTIONS MUST SUBMIT TO THE COMMISSION FORPURPOSES OF PREPARING THE REPORT; AND TO AMEND SECTION 95, PART II OF ACT 145 OF 1995,RELATING TO SINGLE-GENDER PROGRAMS OF HIGHER LEARNING, SO AS TO PROVIDE THAT THECOMMISSION SHALL NOT BE AUTHORIZED TO REQUIRE ANY CHANGE TO A COURT-APPROVED SINGLE-GENDEREDUCATION PROGRAM WHICH WOULD HINDER THE PROGRAM'S ABILITY TO PRODUCE A SUBSTANTIVELYCOMPARABLE OUTCOME, AND TO REVISE THE EFFECTIVE DATE OF THIS SECTION.

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

Manner of appointment revised

SECTION 1. Section 59-103-10 of the 1976 Code, as last amended by Act 137 of 1995, isfurther amended to read:

'Section 59-103-10. There is created the State Commission on Higher Education. Thecommission shall consist of fourteen members appointed by the Governor. The membershipmust consist of one at-large member to serve as chairman, one representative from each ofthe six congressional districts, three members appointed from the State at-large, threerepresentatives of the public colleges and universities, and one representative of theindependent colleges and universities 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 Stateappointed by the Governor upon the recommendation of a majority of the senators and amajority of the members of the House of Representatives comprising the legislativedelegation from the district and three members appointed from the State at-large upon theadvice and consent of the Senate. Each representative of a congressional district must bea resident of the congressional district he represents. In order to qualify forappointment, the representatives from the congressional districts and those appointed atlarge must have experience in at least one of the following areas: business, the educationof future leaders and teachers, management, or policy. A member representing thecongressional districts or appointed at large must not have been, during the succeedingfive years, a member of a governing body of a public institution of higher learning inthis State and must not be employed or have immediate family members employed by any ofthe public colleges and universities of this State. These members must be appointed forterms of four years and shall not serve on the commission for more than two consecutiveterms. However, the initial term of office for a member appointed from an even-numberedcongressional district shall be two years.

If the boundaries of the congressional districts are changed, members serving on thecommission shall continue to serve until the expiration of their current terms, butsuccessors to members whose terms expire must be appointed from the newly definedcongressional districts. If a congressional district is added, the commission must beenlarged to include a representative from that district.

(2) Three members to serve ex officio to represent the public colleges and universitiesappointed by the Governor with the advice and consent of the Senate. It shall not be aconflict of interest for any voting ex officio member to vote on matters pertaining totheir individual college or university. One member must be serving on the board oftrustees of one of the public senior research institutions, one member must be serving onthe board of trustees of one of the four-year public institutions of higher learning, andone member must be a member of one of the local area technical education commissions orthe State Board for Technical and Comprehensive Education to represent the State Board forTechnical and Comprehensive Education. These members must be appointed to serve terms oftwo years with terms to rotate among the institutions.

(3) One ex officio member to represent the independent colleges and universities by theGovernor upon the advice and consent of the Senate. The individual appointed must beserving as a member of the Advisory Council of Private College Presidents. This membermust 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 adviceand consent of the Senate. This member must be appointed for a term of four years and maybe 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 andminority groups, especially women and blacks, are fairly represented on the commission andshall attempt to assure that the graduates of no one public or private college ortechnical college are dominant on the commission. Vacancies must be filled in the mannerof the original appointment for the unexpired portion of the term. All members of thecommission shall serve until their successors are appointed and qualify.'

Higher education mission

SECTION 2. The 1976 Code is amended by adding:

'Section 59-103-15. (A)(1) The General Assembly has determined that the missionfor higher education in South Carolina is to be a global leader in providing acoordinated, comprehensive system of excellence in education by providing instruction,research, and life-long learning opportunities which are focused on economic developmentand 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 ofPresidents of State Institutions, institutions of higher learning, and the businesscommunity;

(f) economic growth;

(g) clearly defined missions.

(B) The General Assembly has determined that the primary mission or focus for each typeof institution of higher learning or other post-secondary school in this State is asfollows:

(1) Research institutions

(a) college-level baccalaureate education, master's, professional, and doctor ofphilosophy 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 toemployment or continued education, or both, except for doctoral degrees currently beingoffered;

(b) limited and specialized research;

(c) public service to the State and the local community;

(3) Two-year institutions - branches of the University of South Carolina

(a) college-level pre-baccalaureate education necessary to confer associates' degreeswhich lead to continued education at a four-year or research institution;

(b) public service to the State and the local community;

(4) State technical and comprehensive education system

(a) all post-secondary vocational, technical, and occupational diploma and associatedegree programs leading directly to employment or maintenance of employment and associatedegree 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 forprospective and existing industry in order to enhance the economic development of SouthCarolina;

(d) public service to the State and the local community;

(e) continue to remain technical, vocational, or occupational colleges with a missionas stated in item (4) and primarily focused on technical education and the economicdevelopment of the State.'

Responsibilities of commission

SECTION 3. Section 59-103-20 of the 1976 Code is amended to read:

'Section 59-103-20. The commission shall meet regularly and shall have theauthority and responsibility for a coordinated, efficient, and responsive higher educationsystem in this State consistent with the missions of each type of institution asstipulated in Section 59-103-15. In meeting this responsibility and in performing itsduties and functions, the commission shall coordinate and collaborate at a minimum withthe Council of Presidents of State Institutions, the council of board chairs of thevarious public institutions of higher learning, and the business community. The commissionalso is charged with examining the state's institutions of higher learning relative toboth short and long-range programs and missions which include:

(a) the role of state-supported higher education in serving the needs of the State andthe roles and participation of the individual institutions in the statewide program;

(b) enrollment trends, student costs, business management practices, accountingmethods, operating results and needs, and capital fund requirements;

(c) the administrative setup and curriculum offerings of the several institutions andof the various departments, schools, institutes, and services within each institution andthe respective relationships to the services and offerings of other institutions;

(d) areas of state-level coordination and cooperation with the objective of reducingduplication, increasing effectiveness, and achieving economies and eliminating sources offriction and misunderstanding;

(e) efforts to promote a clearer understanding and greater unity and good will amongall institutions of higher learning, both public and private, in the interest of servingthe educational needs of the people of South Carolina on a statewide level.'

Critical success factors and performance indicators

SECTION 4. The 1976 Code is amended by adding:

'Section 59-103-30. (A) The General Assembly has determined that the criticalsuccess factors, in priority order, for academic quality in the several institutions ofhigher 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 institution embodiesthese critical success factors can be measured by the following performance indicators asreflected 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 compensationis 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 matterexperts 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 academicprograms;

(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, oremployment-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 fundingrecommendations for institutions of higher learning, is required to use objective,measurable criteria.

(D) Critical success factors developed and used for the purpose of fundingrecommendations shall be those which are directly related to the missions of theparticular type of institution as outlined in Section 59-103-15(B) and not those factorswhich are not relevant to the success factors of the particular type of institution.'

Budget and program approval procedures revised

SECTION 5. Section 59-103-35 of the 1976 Code, as last amended by Act 178 of 1993, isfurther amended to read:

'Section 59-103-35. All public institutions of higher learning shall submit annualbudget requests to the commission in the manner set forth in this section. The State Boardfor Technical and Comprehensive Education shall submit an annual budget request to thecommission representing the total requests of all area-wide technical and comprehensiveeducational institutions. The budget submitted by each institution and the State Board forTechnical 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, andfrom the operation of canteens and bookstores which may be retained by the institutionsand be used as determined by the respective governing boards, subject to annual audit bythe 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 byeach institution as previously determined by the respective governing boards, subject toannual audit by the State. The budget request for the public higher education system shallbe submitted by the commission to the Governor and appropriate standing committees of theGeneral Assembly in conjunction with the preparation of the annual general appropriationsact for the applicable year.

Supplemental appropriations requests from any public institution of higher educationmust be submitted first to the commission. If the commission does not concur in therequests, the affected institution may request a hearing on the requests before theappropriate committee of the General Assembly. The commission may appear at the hearingand present its own recommendations and findings to the same committee. The provisions ofthis paragraph do not apply to any capital improvement projects funded in whole or in partprior to July 30, 1996.

No new program may be undertaken by any public institution of higher education withoutthe approval of the commission. The provisions of this chapter apply to all collegeparallel, transferable, and associate degree programs of technical and comprehensiveeducation institutions. All other programs and offerings of technical and comprehensiveeducation institutions are excluded from this chapter.'

Duties and functions of commission revised

SECTION 6. Section 59-103-45 of the 1976 Code is amended to read:

'Section 59-103-45. In addition to the powers, duties, and functions of theCommission on Higher Education as provided by law, the commission, notwithstanding anyother provision of law to the contrary, shall have the following additional duties andfunctions with regard to the various public institutions of higher education:

(1) establish procedures for the transferability of courses at the undergraduate levelbetween two-year and four-year institutions or schools;

(2) coordinate with the State Board of Education in the approval of secondary educationcourses for the purpose of determining minimum college entrance requirements, and defineminimum academic expectations for prospective post-secondary students, communicate theseexpectations to the State Board of Education, and work with the state board to ensurethese expectations are met;

(3) review minimum undergraduate admissions standards for in-state and out-of-statestudents;

(4)(a) develop standards for determining how well an institution has met or achievedthe performance indicators for quality academic success as enumerated in Section59-103-30, and develop mechanisms for measuring the standards of achievement of particularinstitutions. These standards and measurement mechanisms shall be developed inconsultation and cooperation with, at a minimum but not limited to, the Council ofPresidents of State Institutions, the chairmen of the governing boards of the variousinstitutions and the business community;

(b) base the higher education funding formula in part on the achievement of thestandards set for these performance indicators including base-line funding forinstitutions meeting the standards of achievement, incentive funding for institutionsexceeding the standards of achievement, and reductions in funding for institutions whichdo not meet the standards of achievement, provided that each institution under the formulauntil 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) aboveand submit such regulations to the General Assembly for its review pursuant to theAdministrative Procedures Act not later than the beginning of the 1997 Session of theGeneral Assembly.

(d) develop a higher education funding formula based entirely on an institution'sachievement of the standards set for these performance indicators, this formula to be usedbeginning July 1, 1999. This new funding formula also must be contained in regulationspromulgated by the commission and submitted to the General Assembly for its review inaccordance with the Administrative Procedures Act;

(5) reduce, expand, or consolidate any institution of higher learning including thosewhich do not meet the standards of achievement in regard to the performance indicators forquality academic success enumerated in Section 59-103-30, and beginning July 1, 1999,close any institution which does not meet the standards of achievement in regard to theperformance indicators for quality academic success enumerated in Section 59-103-30. Theprocess to be followed for the closure, reduction, expansion, or consolidation of aninstitution under this item (5) shall be as promulgated in regulations of the commissionwhich shall be submitted to and approved by the General Assembly;

(6) review and approve each institutional mission statement to ensure it is within theoverall mission of that particular type of institution as stipulated by Section 59-103-15and is within the overall mission of the State;

(7) ensure access and equity opportunities at each institution of higher learning forall citizens of this State regardless of race, gender, color, creed, or national originwithin the parameters provided by law.'

Technical corrections

SECTION 7. Section 59-103-60 of the 1976 Code, as last amended by Act 137 of 1995, isfurther amended to read:

'Section 59-103-60. The commission shall make such recommendations to theGovernor's Office and the General Assembly as to policies, programs, curricula,facilities, administration, and financing of all state-supported institutions of higherlearning as may be considered desirable. The House Ways and Means Committee, the SenateFinance Committee, and the State Budget and Control Board may refer to the commission forinvestigation, study, and report any requests of institutions of higher learning for newor additional appropriations for operating and for other purposes and for theestablishment of new or expanded programs.'

Closure of an institution

SECTION 8. The 1976 Code is amended by adding:

'Section 59-103-65. If an institution beginning July 1, 1999, is closed by thecommission, the institution shall be treated as a terminated agency under Section 1-20-30and as such terminated in the manner provided therein. However, any remaining funds shallnot revert to the general fund as provided in Section 1-20-30 but instead shall bereallocated to higher education funding through use of the higher education fundingformula in the manner the commission shall provide.'

New construction and purchases

SECTION 9. Section 59-103-110 of the 1976 Code is amended to read:

'Section 59-103-110. No public institution of higher learning shall be authorizedto construct or purchase any new permanent facility at any location other than on acurrently approved campus or on property immediately contiguous thereto unless such newlocation or purchase of improved or unimproved real property has been approved by thecommission.'

References incorporated; cost of Palmetto Fellows Scholarships

SECTION 10. Chapter 104 of Title 59 of the 1976 Code is amended to read:

'CHAPTER 104

Initiatives for Research and Academic Excellence

Article 1

Excellence for Students

Section 59-104-10. (A) In consultation and coordination with the public institutions ofhigher learning in this State, the State Commission on Higher Education shall ensure thatminimal admissions standards are maintained by the institutions.

The commission, with the institutions, shall monitor the effect of compliance withadmissions prerequisites that are effective at the institution.

(B) The boards of trustees of each public institution of higher learning, excluding theState Board for Technical and Comprehensive Education, shall adopt admission policiesreflecting the desired mix of in-state and out-of-state enrollment appropriate for eachinstitution. Changes in the policies affecting the mix of in-state and out-of-stateenrollment must be approved by the board of trustees of the affected institution. Theboards shall submit the policies to the commission by July 1, 1989, and any subsequentchanges to the policies must be submitted to the commission. These admission policies andstandards shall be reviewed by the commission as provided in Section 59-103-45(3). Forpurposes of this section enrollment must be calculated on a full-time equivalency basiswith the equivalent of one full-time student being a student enrolled for thirty credithours in an academic year. Out-of-state students mean students who are not eligible forin-state rates for tuition and fees under Chapter 112 of Title 59.

Section 59-104-20. The Palmetto Fellows Scholarship Program is established to fosterscholarship among the state's post-secondary students and retain outstanding SouthCarolina high school graduates in the State through awards based on scholarship andachievement. Measures must be taken to ensure equitable minority participation in thisprogram. Recipients of these scholarships are designated Palmetto Fellows. Each PalmettoFellow shall receive a scholarship in an amount designated by the Commission on HigherEducation. The commission shall promulgate regulations and establish procedures toadminister the program and request annual state appropriations for the program.

Section 59-104-30. Each public institution of higher learning in this State shalldevelop a plan for developmental education in accord with provisions, procedures, andrequirements developed by the Commission on Higher Education. The commission shall conducta study as well as evaluations and reviews of developmental education in this State. Thecommission shall develop appropriate methods of funding developmental education programsand courses.

Section 59-104-40. (A) The technical education system in this State shall convert fromthe quarter calendar to the semester calendar, if funds are appropriated for this purpose.The Commission on Higher Education shall request state appropriations for the conversionto be funded and completed over a two-year period.

(B) The State Board for Technical and Comprehensive Education, in consultation with thecommission, shall limit the offering of courses designed for college transfer in thosetechnical colleges that do not have approved college transfer programs. The offering of`college parallel' general education courses in institutions not authorized to award theassociate in arts or associate in science degree is limited to those necessary to supportapproved nontransfer programs. The commission, after consultation with the State Board forTechnical and Comprehensive Education and with public senior colleges and universities,shall establish rules and procedures by which this limitation must be regulated. Thecommission shall establish procedures concerning courses acceptable for transfer asprovided in Section 59-103-45(1).

Article 3

Excellence in Instruction and Educational Services

Section 59-104-210. A competitive grants program is established to improveundergraduate education in South Carolina. The State Commission on Higher Education shalladminister the program, promulgate appropriate regulations, and request annual stateappropriations for this purpose. All public and private nonproprietary post-secondaryinstitutions accredited by the Commission on Colleges of the Southern Association ofColleges and Schools are eligible to participate in this program.

Section 59-104-220. The Governor's Professor of the Year Award is established asfollows:

(1) Each public or private institution of higher learning in this State is eligible tonominate one faculty member for this award who has demonstrated exceptional teachingperformance.

(2) The Governor's Office in conjunction with the Commission on Higher Education shallestablish a committee to choose the Professor of the Year. The committee must consist ofrepresentatives of the Governor's Office, the commission, and appropriate civic, business,government, and academic organizations.

(3) The award must include a citation and a payment of five thousand dollars. TheGovernor's Office shall host an appropriate ceremony at which the award must be presented.

(4) The commission shall request annual state appropriations for the award.

Section 59-104-230. The Commission on Higher Education shall request state funds andestablish procedures to implement a program of endowed professorships at senior publicinstitutions of higher learning to enable the institutions to attract or retain productivefaculty scholars who are making or show promise of making substantial contributions to theintellectual life of the State.

Each professorship must be supported by the income from an endowment fund createdespecially for that purpose. Half of the corpus of each fund must be provided by thecommission through this program, and half must be provided by the institution from privatefunds specifically donated for this purpose.

The State Treasurer shall establish a separate fund consisting of any fundsappropriated for all endowed professorships plus accrued interest received. Any amountremaining in the established fund at the end of any fiscal year must be carried forward tothe next fiscal year to be used for endowed professorships. Funds in the specified amountsto support each endowment may be transferred by the commission to each eligibleinstitution.

Section 59-104-240. (A) The Commission on Higher Education shall request state funds toimplement a program to endow salary enhancements for outstanding faculty in technicalcolleges and two-year campuses of the University of South Carolina. The purpose of theprogram is to enable the state's two-year college systems to retain and reward outstandinginstructional personnel.

(B) The commission, in collaboration with the State Board for Technical andComprehensive Education and the University of South Carolina, shall establish proceduresto implement the program. Each salary enhancement must be supported by an endowment fundcreated especially for that purpose. Half of the corpus of each fund must be provided bythe commission through this program, and half must be provided by the institution fromprivate sources specifically donated for this purpose.

(C) The State Treasurer shall establish a separate fund consisting of any fundsappropriated for all salary enhancements plus accrued interest received. Any amountremaining in the established fund at the end of any fiscal year must be carried forward tothe next fiscal year to be used for salary enhancements. Funds in the specified amounts tosupport each salary enhancement may be transferred by the commission to each eligibleinstitution.

Section 59-104-250. All libraries in the technical colleges in this State shall convertto a computer-based automated system that is compatible with existing state librarysystems and allows for appropriate networking with public colleges and universities iffunds are appropriated for this purpose. The Commission on Higher Education shall requestspecial appropriations to accomplish the conversion.

Section 59-104-260. The Commission on Higher Education shall encourage the developmentof joint programs that take advantage of the strengths of the public colleges anduniversities and discourage the development of independent competitive programs. Theprograms must be developed through planning and cooperation among the institutions in bothacademic and nonacademic areas.

Article 5

Excellence in Research For Economic Development

Section 59-104-410. A Research Investment Fund is created to establish or expandresearch programs in public institutions of higher learning in this State which arerelated to the continued economic development of South Carolina. The fund must consist ofappropriations to the State Commission on Higher Education which it allocates to theinstitutions for research. The funds must be apportioned among the three senioruniversities and the four-year colleges in a manner that takes into account the previousyear's expenditures of externally generated funds for research by the institutions asreported to the commission. However, the commission may make exceptions to accommodateeconomic development opportunities in any area of the State.

Section 59-104-420. (A) The fund must be used for research which:

(1) has a direct, positive impact on economic development, education, health, orwelfare in this State;

(2) has an existing base in faculty expertise, resources, and facilities;

(3) serves to improve the quality of undergraduate and graduate education for SouthCarolina citizens in accordance with the institutions' stated missions as given in thecommission's master plan and as developed by the institution and approved by thecommission as provided in Section 59-103-45(5).

(B) The fund must not be used for capital construction projects.

Section 59-104-430. At the end of each fiscal year, comprehensive reports must be madeto the Commission on Higher Education on the expenditures of funds and the resultsrealized from the research programs. At the end of two fiscal years and each fiscal yearafter that, the commission shall reexamine the process of appropriating funds for researchand the results obtained from the expenditures and recommend changes and alterations inthe funding of research by the State if the changes are considered advisable by thecommission.

Section 59-104-440. (A) With the exception of the University of South Carolina, ClemsonUniversity, and the Medical University of South Carolina, institutions seeking financialsupport from the fund for research projects shall submit proposals to the commission forits review and approval.

(B) The portion of the fund allocated to the three senior universities excepted insubsection (A) must be distributed in a manner that takes into account the previous year'sexpenditures of externally generated funds for research which each university reported tothe commission.

(C) No funds allocated under the provisions of this chapter nor matching funds receivedpursuant to terms of this chapter may be used to increase an institution's future years'formula funding as computed by the Commission on Higher Education.

Article 7

Improving Accountability Through Planning and Assessment

Section 59-104-610. The State Commission on Higher Education shall maintain a statewideplanning system to address strategic issues in public and private higher education. Thesystem must focus upon the following goals to:

(1) identify future directions for higher education in South Carolina and recommendappropriate methods for meeting the resultant challenges;

(2) review major goals identified by the public and private institutions of higherlearning in this State and ascertain their relationship to higher education in SouthCarolina;

(3) assure the maintenance and continued development of the quality of higher educationin South Carolina;

(4) assure the maintenance and continued provision of access to and equality ofeducational opportunity in higher education in South Carolina;

(5) measure and monitor an institution's standard of achievement in regard to theperformance indicators for quality academic success as contained in Section 59-103-30.

Section 59-104-620. (A) The Commission on Higher Education shall establish an AdvisoryCouncil on Planning to assist the commission and the institutions of higher learning inmaintaining planning as a high priority.

(B) The advisory council shall report to the executive committee of the commission,which shall serve as the standing committee on planning for the commission.

(C) The advisory council shall submit to the executive committee of the commission itsadvice, reports, and draft plans.

Section 59-104-630. The Commission on Higher Education shall ensure that each publicinstitution of higher learning in this State maintains its individual planning process.

Section 59-104-640. (A) The chief executive officer of the Commission on HigherEducation shall develop a prospectus for planning each year.

(B) In the initial year, the Advisory Council on Planning is responsible for developinga statewide planning document for submission to the commission.

(C) After the initial year and annually thereafter, the advisory council shall preparerevisions of the planning document for consideration by the commission. The revisions mustconform to, but need not be limited to, the prospectus provided by the commission.

Section 59-104-650. (A) The goals for maintaining an effective system of qualityassessment by institutions of higher learning in South Carolina are to:

(1) assure that a system for measuring institutional achievement in regard to theperformance indicators for quality academic success as contained in Section 59-103-30 isin effect on every public college and university campus in this State;

(2) provide a vehicle for disseminating the results of these measurements to theconstituents within the State;

(3) provide data relative to the effectiveness of each institution that can be used toinitiate curriculum, programmatic, or policy changes within the institution necessary tomeet the standards for these performance indicators.

(B) The process by which these goals must be attained is as follows:

(1) Each institution of higher learning is responsible for maintaining a system tomeasure institutional achievement in regard to the performance indicators for qualityacademic success in accord with provisions, procedures, and requirements developed by theCommission on Higher Education. The system for measuring such institutional achievementmust include, but is not limited to, a description of criteria by which such institutionalachievement is being assessed.

(2) As a part of South Carolina's statewide planning process, each institution shallprovide the commission with an annual report on the results of its institutionalachievement program.

(3) The commission shall prepare a report that must include results of institutionalachievement, including student assessment programs. Information from private colleges anduniversities must be included for those institutions that voluntarily provide theinformation to the commission.

Section 59-104-660. (A) All state-supported institutions of higher learning shallestablish their own procedures and programs to measure student achievement which mustinclude, but are not limited to, the performance indicators contained in Section59-103-30(B)(6) and (7). The procedures and programs must be submitted to the Commissionon Higher Education as part of the plan for measuring institutional achievement and must:

(1) derive from institutional initiatives, recognizing the diversity of South Carolinapublic colleges and universities, the tradition of institutional autonomy, and thecapacity of faculty and administrators to identify their own problems and solve themcreatively;

(2) be consistent with each institution's mission and educational objectives;

(3) involve faculty in setting the standards of achievement, selecting the measurementinstruments, and analyzing the results;

(4) follow student progress through the curriculum, as appropriate;

(5) include follow-up of graduates.

(B) As part of their annual report on institutional achievement, all state-supportedcolleges and universities shall describe their progress in developing assessment programsand submit information on student achievement to the commission.'

Report contents revised

SECTION 11. Section 59-101-350 of the 1976 Code is amended to read:

'Section 59-101-350. (A) The Commission on Higher Education shall submit an annualreport to the Governor and to the General Assembly. The annual report must be publishedprior to January fifteenth of each year and presented in a readable format so as to easilycompare with peer institutions in South Carolina and other Southern Regional EducationBoard states the state's public, post-secondary institutions. Prior to publication, theCommission on Higher Education shall distribute a draft of the report to all public,post-secondary institutions and shall allow comment upon the draft report. The Commissionon Higher Education shall develop and adopt a format for the report and shall ensureconsistent reporting and collecting of the data in the report by the institutions.

(B) Each four-year, post-secondary institution shall submit to the commission thefollowing information for inclusion in the report, with the South Carolina Department ofCorrections' students identified and reported separately:

(1) the number and percentage of accredited programs and the number and percentage ofprograms eligible for accreditation;

(2) the number and percentage of undergraduate and graduate students who completedtheir degree program;

(3) the percent of lower division instructional courses taught by full-time faculty,part-time faculty, and graduate assistants;

(4) the percent and number of students enrolled in remedial courses and the number ofstudents exiting remedial courses and successfully completing entry-level curriculumcourses;

(5) the percent of graduate and upper division undergraduate students participating insponsored research programs;

(6) placement data on graduates;

(7) the percent change in the enrollment rate of students from minority groups and thechange in the total number of minority students enrolled over the past five years;

(8) the percent of graduate students who received undergraduate degrees at theinstitution, within the State, within the United States, and from other nations;

(9) the number of full-time students who have transferred from a two-year,post-secondary institution and the number of full-time students who have transferred totwo-year, post-secondary institutions;

(10) student scores on professional examinations with detailed information on state andnational means, passing scores, and pass rates, as available, and with information on suchscores over time, and the number of students taking each exam;

(11) appropriate information relating to each institution's role and mission;

(12) any information required by the commission in order for it to measure anddetermine the institution's standard of achievement in regard to the performanceindicators for quality academic success enumerated in Section 59-103-30.

(C) Each two-year, post-secondary institution shall submit to the commission thefollowing information for inclusion in the report:

(1) the number and percentage of accredited programs and the number and percentage ofprograms eligible for accreditation;

(2) the number and percentage of undergraduate students who completed their degreeprogram;

(3) the percent of courses taught by full-time faculty members, part-time faculty, andgraduate assistants;

(4) placement rate on graduates;

(5) the percent change in the enrollment rate of students from minority groups, thenumber of minority students enrolled and the change in the total number of minoritystudents enrolled over the past five years;

(6) the number of students who have transferred into a four-year, post-secondaryinstitution and the number of students who have transferred from four-year, post-secondaryinstitutions;

(7) appropriate information relating to the institution's role and mission;

(8) any information required by the commission in order for it to measure and determinethe institution's standard of achievement in regard to the performance indicators forquality academic success enumerated in Section 59-103-30.

(D) The commission also shall develop with the cooperation of the public,post-secondary institutions, a uniform set of questions to be included in surveys to beused by each public, post-secondary institution in determining alumni satisfaction. Thesurvey instruments must address the issues of overall satisfaction, satisfaction withmajor instruction, impact of general education, and current societal participation ofalumni. Every two years the graduating class of three years prior must be surveyed by eachinstitution using appropriate statistical techniques. Information from these surveys mustbe included every two years in the annual report as required herein.

(E) The commission shall make no funding decision, capital outlay decision,distribution or certification on behalf of any public, post-secondary institution that hasnot submitted the information required pursuant to this section.

(F) After discussions with the institutions, the Commission on Higher Education inconsultation with the House Education and Public Works Committee and the Senate EducationCommittee shall develop the format for the higher education report as required herein.

(G) The Commission on Higher Education also is required in the annual report to reporton the progress of institutions of higher education in implementing assessment programs,in their achievement of effectiveness goals, and on each institution's standard ofachievement in regard to the performance indicators for academic success established inSection 59-103-30.

(H) The report required by this section must be filed in magnetic media form if theinformation is available in that form.'

Changes to single-gender programs; effective date of section

SECTION 12. Subsections (A), (B), and (C) of Section 95, Part II of Act 145 of 1995,are amended to read:

'(A) The General Assembly finds that some students, both male and female, benefitfrom attending a single-gender college. For these students, the opportunity to attend asingle-gender college is a valuable experience, likely to lead to better academic andprofessional achievements. The General Assembly therefore adopts the findings of fact inU.S. v. Commonwealth of Virginia, 44 F.3d 1229, 1232, 1238 (4th Cir. 1995) that`single-gender education at the college level is beneficial to both sexes'. Further, inthat single-gender education is both beneficial and justifiable, the General Assemblyfinds that providing opportunities for students to attend a single-gender college fulfillsan important and legitimate state objective, and therefore declares and stipulates that itis the public policy of the State to support the establishment and maintenance ofsingle-gender programs of higher learning for both sexes. Single-gender offerings to bothmen and women need not be identical in form and detail, but should be designed to producesubstantively comparable outcomes.

(B) The General Assembly shall annually provide such funding as may be necessary, underthe auspices of the Commission on Higher Education, to establish and maintain approvedsingle-gender offerings, provided that the commission shall not be authorized to requireany change to a court approved single-gender education program which would hinder theprogram's ability to produce a substantively comparable outcome.

(C) This section takes effect July 1, 1996, and upon approval of a single-genderprogram by any court of competent jurisdiction.'

Time effective

SECTION 13. This act takes effect July 1, 1996.

Approved the 20th day of May, 1996.


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