Bill 3493

                    Current Status

Bill Number:               3493
Ratification Number:       802
Act Number                 676
Introducing Body:          House
Subject:                   Expenditure of institutional fees and
                           locally appropriated county funds

(A676, R802, H3493)

AN ACT TO AMEND SECTION 59-53-51, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATIONAL AND FINANCIAL ACCOUNTABILITY FOR THE OPERATION OF TECHNICAL EDUCATION INSTITUTIONS, SO AS TO PROVIDE THAT INSTITUTIONAL FEES AND LOCALLY APPROPRIATED COUNTY FUNDS MUST BE RETAINED IN ACCOUNTS HELD BY THE AREA COMMISSIONS FOR EXPENDITURE UNDER THEIR DIRECTION IN ACCORDANCE WITH ALL APPLICABLE STATE AND OTHER LAWS, AND TO AMEND SECTION 59-53-53, RELATING TO BORROWING BY AREA COMMISSIONS, SO AS TO PROVIDE THAT AN AREA COMMISSION MAY ISSUE COVENANTS, ENTER INTO MORTGAGES, AND GRANT LIENS LIMITING THE SALE OR USE OF CERTAIN PARCELS OF REAL OR PERSONAL PROPERTY IN ITS POSSESSION WHEN REQUIRED AS A CONDITION OF ACCEPTING A GRANT, LOAN, OR DONATION FOR SPECIFIED CAPITAL IMPROVEMENT PROJECTS, AND TO PROVIDE THAT LOCAL AREA COMMISSIONS MAY DISPOSE OF REAL PROPERTY THAT IS SURPLUS TO THEIR NEEDS UNDER CERTAIN CONDITIONS.

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

Expenditure of institutional fees and locally appropriated county funds

SECTION 1. Section 59-53-51 of the 1976 Code is amended to read:

"Section 59-53-51. The Board shall establish statewide policies and procedures necessary to insure educational and financial accountability for operation of the technical education institutions and their programs.

The area commissions shall participate and provide input in the formulation of statewide policies and procedures through joint meetings, distribution of discussion documents and position papers, joint committees, service by area commission members on state board standing committees, and whatever other means which may be necessary or desirable.

The area commissions are delegated primary responsibility for local governance and supervision of the individual institutions in compliance with all state laws by adoption of appropriate local policies and procedures which are consistent with state-level policies and procedures.

Institutional fees and locally appropriated county funds must be retained in accounts held by the area commissions for expenditure under their direction in accordance with all applicable state and other laws.

An area commission has the right to appeal to the Budget and Control Board any final decision or action of the Board in accordance with the following procedures:

(1) if differences occur between the state executive director and the local president, the executive director, local president, and state board congressional district member or a designated at-large Board member shall appear before the local area commission to resolve the differences;

(2) if the differences are not resolved as outlined in item (1) the area commission chairman, local president, and state executive director shall appear before the Board to resolve the differences;

(3) if the differences are not resolved by the Board all parties, including the chairman of the Board, shall appear before the Budget and Control Board to resolve the differences."

Issuance of covenants, etc., and disposal of surplus property

SECTION 2. Section 59-53-53 of the 1976 Code is amended to read:

"Section 59-53-53. The area commission of any technical education institution under the jurisdiction of the South Carolina technical education system may borrow for capital improvements from a federal or other lending agency an amount not to exceed its ability to repay the loan through the imposition of a special fee. The terms of the loan may not exceed forty years. An area commission may issue covenants, enter into mortgages, and grant liens limiting the sale or use of certain parcels of real or personal property in its possession when required as a condition of accepting a grant, loan, or donation for specified capital improvement projects. Local area commissions may dispose of real property that is surplus to their needs upon prior approval of the State Board for Technical and Comprehensive Education, the Budget and Control Board, and the Joint Bond Review Committee. Proceeds from the sale of such property must be deposited in the capital improvement account and expended by the local institution in accordance with all applicable state and other laws.

To amortize the loan, a special fee must be imposed within the limits established by the state board, the proceeds of which must be deposited in a special account to be used for payment of the loan in accordance with the terms negotiated by the commission and the lender. No funds other than the revenue from the special fee may be pledged for payment of the loan."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.