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1 Indicates Matter Stricken 2 Indicates New Matter 3 4 COMMITTEE AMENDMENT ADOPTED AND AMENDED 5 February 21, 2007 6 7 S. 322 8 9 Introduced by Senators Hayes, Hawkins, Vaughn, Peeler, 10 Leatherman, Leventis, O’Dell, McConnell, Cromer, Patterson, 11 Knotts, Land, Mescher, Martin and Alexander 12 13 S. Printed 2/21/07--S. [SEC 2/22/07 1:00 PM] 14 Read the first time January 24, 2007. 15 16

1 [322-1] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND CHAPTER 114, TITLE 59, CODE OF LAWS OF 12 SOUTH CAROLINA, 1976, RELATING TO THE SOUTH 13 CAROLINA NATIONAL GUARD TUITION ASSISTANCE 14 ACT, SO AS TO ENACT THE “SOUTH CAROLINA 15 NATIONAL GUARD COLLEGE ASSISTANCE PROGRAM 16 ACT”, TO DEFINE CERTAIN TERMS, TO PROVIDE FOR 17 COLLEGE ASSISTANCE PROGRAM GRANTS TO BE 18 ADMINISTERED BY THE COMMISSION ON HIGHER 19 EDUCATION, TO PROVIDE ELIGIBILITY REQUIREMENTS 20 TO QUALIFY FOR THE GRANTS, TO PROVIDE FOR 21 FUNDING TO BE APPROPRIATED BY THE GENERAL 22 ASSEMBLY, AND TO PROVIDE THAT THE COMMISSION 23 ON HIGHER EDUCATION SHALL PROMULGATE 24 REGULATIONS; TO AMEND SECTION 59-111-75, 25 RELATING TO THE LOAN REPAYMENT PROGRAM FOR 26 MEMBERS OF THE NATIONAL GUARD SERVING IN 27 AREAS OF CRITICAL NEED, SO AS TO PROVIDE THAT 28 THE LOAN REPAYMENT PROGRAM MAY NOT ACCEPT 29 NEW PARTICIPANTS AND PROVIDE THAT MEMBERS OF 30 THE SOUTH CAROLINA NATIONAL GUARD WHO HAVE 31 RECEIVED LOANS BEFORE THE 2007-08 ACADEMIC YEAR 32 MAY CONTINUE TO RECEIVE THEIR LOANS AND HAVE 33 THEIR LOANS FORGIVEN PURSUANT TO THE 34 PROVISIONS UNDER WHICH THE LOAN PROGRAM 35 BEGAN; AND TO REPEAL ARTICLE 6, CHAPTER 111, 36 TITLE 59, RELATING TO ONE-HALF TUITION FOR 37 MEMBERS OF THE SOUTH CAROLINA NATIONAL 38 GUARD. 39 Amend Title To Conform 40 41 Be it enacted by the General Assembly of the State of South 42 Carolina:

1 [322] 1 1 2 SECTION 1. Chapter 114, Title 59 of the 1976 Code is amended 3 to read: 4 5 “CHAPTER 114 6 7 South Carolina National Guard Tuition College Assistance 8 Program Act 9 10 Section 59-114-10. This chapter may be cited as the ‘South 11 Carolina National Guard Tuition College Assistance Program Act’. 12 13 Section 59-114-20. As used in this chapter: 14 (1) ‘Adjutant General’ shall mean the South Carolina Adjutant 15 General. 16 (2) ‘Academic year’ shall mean any means a period of three 17 hundred sixty-five days beginning with the first day of enrollment 18 for a course of instruction by a National Guard member. 19 (2) ‘College assistance program’ means the South Carolina 20 National Guard College Assistance Program. 21 (3) ‘Commission’ means the South Carolina Commission on 22 Higher Education. 23 (4) ‘Eligible institution’ shall mean means: 24 (a) any institution of higher learning located in this State and 25 any post-secondary business or technical education school located 26 in this State a public institution of higher learning as defined in 27 Section 59-103-5 and an independent institution of higher learning 28 as defined in Section 59-113-50; and 29 (b) any vocational or training school which shall have 30 received the approval of the Adjutant General a public or 31 independent bachelor's level institution chartered before 1962 32 whose major campus and headquarters are located within South 33 Carolina; or an independent bachelor's level institution which was 34 incorporated in its original charter in 1962, was granted a license 35 to operate in 1997 by the Commission on Higher Education, has 36 continued to maintain a campus in South Carolina, and is 37 accredited by the Southern Association of Colleges and Secondary 38 Schools. Institutions whose sole purpose is religious or theological 39 training, or the granting of professional degrees do not meet the 40 definition of "public or independent institution" for purposes of 41 this chapter. 42 (4)(5) ‘National Guard’ shall mean means South Carolina 43 Army or Air National Guard.

1 [322] 2 1 (5)(6) ‘Tuition and fees’ shall mean means the amount charged 2 for registering or for credit hours of instruction, and shall not 3 include other fees, charges or costs of textbooks, and other fees 4 and charges associated with attendance at an eligible institution as 5 approved by the commission. 6 7 Section 59-114-30. Qualifying members of the National Guard 8 may receive tuition college assistance program grants, not to 9 exceed one thousand dollars per twelve semester hours. No 10 member may qualify for these grants for more than four separate 11 academic years, and a up to an amount equal to one hundred 12 percent of college tuition and fees, provided, however, the total of 13 all grants received may not exceed eighteen thousand dollars. A 14 member may not qualify for college assistance program grants for 15 more than one hundred thirty semester hours or related quarter 16 hours. Grants are not to be awarded for graduate degree courses. 17 A new application must be submitted for each separate academic 18 year for which tuition assistance is sought. 19 20 Section 59-114-40. (A) Members of the National Guard 21 enrolled or planning to enroll in an eligible institution may apply 22 to the Adjutant General for tuition commission for a college 23 assistance program grant. To qualify, an applicant must be 24 seeking: 25 (1) trade or vocational training; 26 (2) to attain a two-year associate degree; 27 (3) to attain a four-year baccalaureate degree. 28 Additionally, an applicant must have a minimum National Guard 29 service obligation of two years beyond the end of the academic 30 period for which tuition is requested or must agree in writing to 31 formally incur this obligation upon approval of the tuition 32 assistance grant and must meet other criteria established by the 33 Adjutant General by regulation promulgated pursuant to this 34 chapter. 35 (1) be in good standing with the active National Guard at the 36 beginning of each academic year and remain a member in good 37 standing with the active National Guard throughout the entire 38 academic year for which benefits are payable; 39 (2) have valid tuition and fee expenses from an eligible 40 institution; 41 (3) maintain a cumulative grade point average that the 42 institution requires to remain as a student; and

1 [322] 3 1 (4) satisfy additional eligibility requirements as may be 2 promulgated by the commission. 3 (B) Individuals joining the National Guard become eligible for 4 college assistance program grants on the day of enlistment. 5 Enlisted personnel shall continue their service in the National 6 Guard during the term of the courses covered by the grant 7 received. Officers shall continue their service with the National 8 Guard for at least four years after completion of the most recent 9 grant awarded or degree completion. 10 (C) National Guard members receiving a full Reserve Officer’s 11 Training Corps (ROTC) scholarship are not eligible for college 12 assistance program grants. 13 14 Section 59-114-50. The Adjutant General shall administer this 15 program. He may delegate authority to his subordinates within the 16 South Carolina Military Department as is necessary to implement 17 the program. The Adjutant General shall promulgate regulations 18 specifying additional eligibility criteria for tuition assistance grants 19 which shall include, but not be limited to, prior National Guard 20 service requirements, required levels of military occupational skill 21 proficiency, and recommendations required of an applicant’s 22 National Guard supervisors. Additionally, regulations shall be 23 promulgated setting forth standards of academic performance to be 24 met by persons receiving assistance in order to qualify for 25 assistance in future years and, as necessary, specifically approving 26 vocational and training schools as eligible institutions. 27 28 Section 59-114-60. The Adjutant General shall have authority to 29 enter into agreements with eligible institutions, with concurrence 30 of the State Budget and Control Board, for rebating or carrying 31 forward credit on accounts of qualifying members who because of 32 illness, injury or other circumstances withdraw from course work 33 prior to completion of the tuition period. 34 35 Section 59 - 114 - 65. Grants provided pursuant to this chapter are 36 subject to the availability of funds appropriated by the General 37 Assembly. Up to five percent of the amount appropriated to the 38 college assistance program may be used to defray administrative 39 costs incurred by the commission associated with the 40 implementation of this chapter. 41 42 Section 59-114-70. All tuition assistance payments must be 43 made directly to the qualifying applicant who demonstrates to the

1 [322] 4 1 Adjutant General successful completion of twelve semester hours 2 or a pro rata share of twelve semester hours at an eligible 3 institution as defined by this chapter. 4 5 Section 59-114-75. Tuition assistance grants may not be made to 6 qualifying members of the National Guard under the provisions of 7 this chapter after June 30, 2001. The commission shall disburse 8 grants awarded pursuant to this chapter to the eligible institutions 9 to be placed in an account established for each eligible student. In 10 the event that a student who has received a grant withdraws, is 11 suspended, or otherwise becomes ineligible, the institution must 12 reimburse the college assistance program for the amount of the 13 grant for the applicable term pursuant to the refund policies of the 14 institution. The institution is responsible for collecting any amount 15 due to the institution from the student. The commission shall 16 administer the provisions of this chapter and shall promulgate 17 regulations necessary to implement the provisions of this chapter.” 18 19 SECTION 2. Section 59-111-75 of the 1976 Code is amended to 20 read: 21 22 “Section 59-111-75. (A) The Commission on Higher 23 Education, in consultation with the staff of the South Carolina 24 Student Loan Corporation, shall develop a loan repayment 25 program through which talented and qualified state residents may 26 attend state public or private colleges and universities for the 27 purpose of providing incentives for enlisting or remaining in the 28 South Carolina National Guard in areas of critical need. Areas of 29 critical need must be defined annually for that purpose by the 30 Commission on Higher Education in consultation with the State 31 Adjutant General. The Commission on Higher Education shall 32 promulgate appropriate regulations to set forth the terms of the 33 loan repayment program. The regulations must define limitations 34 on monetary repayment amounts, successful participation within 35 the National Guard, successful school matriculation, and other 36 requirements for participation in the loan repayment program. In 37 case of failure to complete the term of enlistment, failure to 38 participate successfully in the National Guard, noncompliance by a 39 borrower with the terms of the loan, or failure to comply with 40 regulations of the program, the borrowers participation in the loan 41 repayment program may be terminated and the borrower remains 42 subject to those provisions as provided in the loan documents. The 43 borrower shall execute the necessary legal documents to reflect his

1 [322] 5 1 obligation to the lending entity and the terms and conditions of the 2 loan. The loan program, as implemented in this section, must be 3 administered by a separate student loan provider. Of the funds 4 appropriated by the General Assembly for the loan repayment 5 program, these funds must be retained in a separate account and 6 used on a revolving basis for purposes of the loan repayment 7 program and its administration. The State Treasurer shall disburse 8 funds from this account as requested by the Commission on Higher 9 Education and upon warrant of the Comptroller General; provided, 10 however, that no more than ten percent of the funds annually 11 appropriated to the Commission on Higher Education for this 12 program may be used for the cost of administering the program. 13 Funds in the account and earnings from it may be carried forward 14 in succeeding fiscal years and used for the purposes of the loan 15 repayment program. The Commission on Higher Education shall 16 review the loan program annually and report to the General 17 Assembly on its progress and results. 18 (B) Beginning with the 2007 - 08 academic year, the loan 19 repayment program established pursuant to this section may not 20 accept new participants. Members of the National Guard who 21 have received loans pursuant to this section before the 2007 - 08 22 academic year may continue to receive their loans, including loans 23 for subsequent academic years, and have their loans forgiven 24 pursuant to the provisions under which the loan program began. 25 Any funds remaining in the loan repayment program, provided for 26 in subsection (A), shall be transferred to the College Assistance 27 Program in accordance with regulations prescribed by the 28 commission. ” 29 30 SECTION 3. Article 6, Chapter 111, Title 59 of the 1976 Code is 31 repealed. 32 33 SECTION 4. This act takes effect upon approval by the Governor 34 and applies beginning with the 2007-08 academic year. 35 ----XX---- 36

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