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COMMITTEE REPORT
May 9, 2001
H. 3639
S. Printed 5/9/01--S.
Read the first time April 24, 2001.
To whom was referred a Bill (H. 3639) to amend Section 59-111-75, Code of Laws of South Carolina, 1976, relating to the Military Department and the development of a loan repayment program to enable, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
HUGH K. LEATHERMAN, SR. for Committee.
EXPLANATION OF IMPACT:
Commission on Higher Education (CHE)
Upon enactment of this bill the General Assembly, at its discretion, may choose to transfer $200,000 of recurring scholarship funds from the Adjutant General's Office, currently used to support the National Guard's tuition assistance grants program, to the Commission on Higher Education. These funds may be used to implement the loan repayment program as provided for in this bill and/or no more than 10% may be used to offset the administrative cost expected to be incurred by the agency. The Commission on Higher Education has indicated that in order to carry out the provisions of this bill, they would need a 0.5 state FTE at a minimum salary and fringe of $28,350 in recurring funds and $14,000 non-recurring funds. The recurring funds would allow the commission to hire a Scholarship Coordinator to administer the program. The non-recurring funds would result from having to modify the commission's Data Collection System in order to incorporate the loan program and purchase office furniture and computer equipment for the coordinator. At least part of the cost to CHE could be transferred from the Adjutant General's Office or the General Assembly may choose to make a direct appropriation from the General Fund of the State. There would be no impact on federal and/or other funds.
Adjutant General
With the enactment of this bill, the Office of the Adjutant General has indicated that there would be no impact to the General Fund of the State. At the discretion of the General Assembly, any cost savings resulting from the transfer of the tuition assistance program may be (1) returned to the General Fund of the State, (2) transferred to the Commission on Higher Education to off set any additional costs incurred or (3) redirected to other areas of the Adjutant General in need of additional support.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTION 59-111-75, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MILITARY DEPARTMENT AND THE DEVELOPMENT OF A LOAN REPAYMENT PROGRAM TO ENABLE QUALIFIED STATE RESIDENTS TO ATTEND COLLEGE AS AN ENLISTMENT OR RETENTION INCENTIVE FOR THE NATIONAL GUARD, SO AS TO AUTHORIZE THE COMMISSION ON HIGHER EDUCATION TO DEVELOP AND MANAGE THE PROGRAM INSTEAD OF THE ADJUTANT GENERAL AND TO FURTHER PROVIDE FOR THE PROCEDURES, CONDITIONS, AND REQUIREMENTS OF THE PROGRAM; BY ADDING SECTION 59-114-75 SO AS TO PROVIDE THAT NATIONAL GUARD TUITION ASSISTANCE GRANTS MAY NOT BE MADE AFTER JUNE 30, 2001, AND TO PROVIDE FOR TRANSITIONAL PROVISIONS TO EFFECTUATE THE ABOVE INCLUDING A PROVISION THAT THE COMMISSION ON HIGHER EDUCATION SHALL BE RESPONSIBLE FOR ADMINISTERING TUITION ASSISTANCE GRANTS MADE BEFORE JULY 1, 2001.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-111-75 of the 1976 Code, as added by Act 387 of 2000, is amended to read:
"Section 59-111-75. The Military Department through the Adjutant General Commission on Higher Education, in consultation with the staff of the South Carolina Student Loan Corporation, shall develop a loan repayment program whereby 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 Adjutant General Commission on Higher Education shall promulgate appropriate regulations to set forth the terms of the loan repayment program, upon the advice of a loan repayment advisory board. The loan repayment advisory board shall consist of the Adjutant General, the State Command Sergeant Major, and three commissioned officers of the South Carolina National Guard. The Governor, Superintendent of Education, and the Adjutant General each shall appoint one such officer. The regulations shall 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 successfully 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 borrower's 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 herein shall 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, such 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 Adjutant General 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 any earnings thereon from it may be carried forward in succeeding fiscal years and used for the purposes of the loan repayment program. The Adjutant General Commission on Higher Education shall review the loan program annually and report to the General Assembly on its progress and results."
SECTION 2. The 1976 Code is amended by adding:
"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."
SECTION 3. To facilitate the orderly transfer of the duties and responsibilities for the National Guard loan program, as established in Chapter 111, Title 59 of the 1976 Code, from the Adjutant General to the Commission on Higher Education, as provided for in Section 1 of this act, the Adjutant General shall transfer all documents, records, and other information in his possession relating to the student loan program to the Commission on Higher Education by July 1, 2001. The Adjutant General shall transfer all documents, records, and other information in his possession relating to the National Guard Tuition assistance grant program, as provided in Chapter 114, Title 59 of the 1976 Code, to the Commission on Higher Education by July 1, 2001, and the Commission on Higher Education shall be responsible for administering tuition assistance grants made before July 1, 2001.
SECTION 4. This act takes effect upon approval by the Governor except that Section 1 is effective July 1, 2001.
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