H 4734 — Public Colleges and Universities

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17, 2025) - South Carolina Legislature Online South Carolina General Assembly126th Session, 2025-2026Bill 4734Indicates Matter StrickenIndicates New Matter(Text matches printed bills.

Document has been reformatted to meet World Wide Web specifications.)                 A bill   TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 59-101-435 SO AS TO REQUIRE PUBLIC INSTITUTIONS OF HIGHER LEARNING TO FORMALLY ADOPT AND COMPLY WITH THE COMPACT FOR ACADEMIC EXCELLENCE IN HIGHER EDUCATION PROPOSED BY the united states secretary of education, AND TO ESTABLISH REPORTING REQUIREMENTS AND ENFORCEMENT PROCEDURES.

  Whereas, the State of South Carolina recognizes that the strength, competitiveness, and long-term prosperity of the State are directly tied to the quality and performance of its public institutions of higher learning;

and   Whereas, the United States Secretary of Education has proposed the Compact for Academic Excellence in Higher Education to promote improved academic outcomes, enhanced institutional transparency, accountability in financial aid administration, and stronger support for student success;

and   Whereas, this compact offers colleges and universities preferential treatment, incentives, and enhanced opportunities in areas such as federal research support, financial aid management, regulatory flexibility, and programmatic eligibility;

and   Whereas, the General Assembly finds that aligning South Carolina's public institutions of higher learning with this federal compact would strengthen institutional performance, expand access to beneficial federal programs, and better serve South Carolina's students and families;

and   Whereas, the General Assembly further finds that a uniform state-level requirement for adoption and compliance will ensure consistency, transparency, and accountability across all public institutions of higher learning in South Carolina.

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

  SECTION 1.  Article 1, Chapter 101, Title 59 of the S.C.

Code is amended by adding:

      Section 59-101-435.  (A) For purposes of this section:

       (1) "Institution" means any public institution of higher learning as defined in Section 59-103-5.

       (2) "Governing board" means the board of trustees or equivalent governing authority of an institution.

    (B) Each institution shall, within ninety days after issuance, renewal, or amendment of the Compact for Academic Excellence in Higher Education, adopt a formal resolution of adherence to the compact and, if possible, to sign the compact indicating full participation of the institution in the compact.

The resolution must:

       (1) acknowledge the institution's eligibility for benefits, incentives, or preferential treatment under the compact;

       (2) commit the institution to full compliance with the obligations, standards, and reforms prescribed by the compact, regardless of whether the institution was formally invited to join the compact;

       (3) direct the institution's president or his designee to implement all necessary policies, procedures, and operational measures required to satisfy the compact.

    (C)(1) Each institution shall:

           (a) integrate compact requirements into its policies, compliance plans, and financial aid operations;

           (b) maintain documentation sufficient to demonstrate ongoing compliance;

and            (c) submit an annual compliance report to the Commission on Higher Education.

       (2) The Commission on Higher Education shall compile these reports and submit a consolidated statewide report to the Governor, the Speaker of the House of Representatives, and the President of the Senate by December thirty-first of each year.

    (D)(1) If the Commission on Higher Education determines that an institution has failed to adopt or comply with the compact, the commission shall issue written notice of noncompliance and provide the institution thirty days to cure the deficiency.

       (2) If the institution fails to cure the deficiency within thirty days:

           (a) the commission may recommend that the General Assembly temporarily withhold up to five percent of the institution's annual state appropriations until compliance is achieved;

and            (b) the commission shall notify the Governor and relevant budget committees of the noncompliance and any recommended corrective actions.

       (3) Any withheld funds must be restored immediately upon certification of compliance.

    (E) Nothing in this section may be construed to require an institution to violate state or federal law, nor does compliance with this section limit any additional state or federal oversight responsibilities.

  SECTION 2.  This act takes effect upon approval by the Governor.

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