H 4738 — Commission on Higher Education

2025-2026 Bill 4738 Text of Previous Version (Mar.(Dec.

25,17, 2026)2025) - South Carolina Legislature Online South Carolina General Assembly126th Session, 2025-2026Bill 4738Indicates Matter StrickenIndicates New Matter(Text matches printed bills.

Document has been reformatted to meet World Wide Web specifications.) Indicates  Matter  Stricken  Indicates  New  Matter    Committee  ReportA Marchbill 25,  2026TO  AMEND H.THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 59-26-20, RELATING TO CERTAIN DUTIES OF THE STATE BOARD OF EDUCATION AND THE COMMISSION ON HIGHER EDUCATION RELATING TO PUBLIC EDUCATOR TRAINING, SO AS TO ELIMINATE THE GOVERNOR'S TEACHING SCHOLARSHIP LOAN PROGRAM;

4738   Introduced by Reps.

Erickson and McGinnis   S.

Printed 3/25/26--H.

Read the first time January 13, 2026   ________   The committee on House Education and Public Works To whom was referred a Bill (H.

4738) to amend the South Carolina Code of Laws by amending Section 59-26-20, relating to certain duties of the State Board of Education and the Commission on Higher Education, etc., respectfully Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

     Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:

SECTION X.

Section 59-143-10(C) of the S.C.

Code is amended to read:

      (C) Funds made available for Need-based Grants and Palmetto Fellows Scholarships through the Higher Education Scholarship Grants allocation must be no more than the prior year's earned revenue and must be released for use on July first and January first of each fiscal year.  Notwithstanding the provisions of this section, any unspent balance in the Higher Education Scholarship Grants allocation of the Children's Education Endowment Fund, including interest and low-level radioactive waste tax revenue from previous years' collections, may be made available for Need-based Grants and Palmetto Fellows Scholarships.

  SECTION X.

Section 59-143-30 of the S.C.

Code is amended to read:

      Section 59-143-30.

(1) Of the funds made available for higher education scholarship grants from the higher education scholarship grant allocation under Section 59-143-10 of the 1976 Code for any year, a percentage thereof must be allocated for higher education scholarships and grants for students attending South Carolina independent colleges of higher learning in this State.  This percentage shall be equivalent to the percentage of the independent colleges' share of the total South Carolina resident undergraduate full-time (FTE) enrollment of all public and independent higher education institutions in South Carolina based on the previous year's data as determined by the Commission on Higher Education and the South Carolina Tuition Grants Commission one-half shall be allocated for Need-based Grants and one-half shall be allocated for Palmetto Fellows Scholarships.

    (2) Of the total funds made available for higher education scholarship grants from the higher education scholarship grant allocation under Section 59-143-10 for any year, a percentage thereof must be allocated for students attending independent institutions of higher learning in this State.

This percentage shall be equivalent to the percentage of the independent colleges' share of the total South Carolina resident undergraduate full time (FTE) enrollment of all public and independent institutions of higher learning in this State based on the previous year's data as determined by the Commission on Higher Education and the South Carolina Tuition Grants Commission.

This percentage shall be drawn from the funds allocated under item (1) for Need-based Grants.

    (2)(3) The allocation each year to students at the South Carolina independent colleges under item (1) above(2) shall be used to provide tuition grants under Chapter 113 of Title 59 of the 1976 Code, and Palmetto Fellows Scholarships under Section 59-104-20 of the 1976 Code in the manner the General Assembly shall provide in the annual general appropriations act.  Of the funds allocated to independent college students, fifty percent shall be awarded for South Carolina Tuition Grants and fifty percent shall be awarded under the Palmetto Fellows Program.  The funds allocated for South Carolina Tuition Grants to South Carolina independent colleges students under this subsection shall be included in the annual appropriation to the Commission on Higher Education and transferred annually into the budget of the South Carolina Tuition Grants Commission in the amount prescribed in item (1)(2) above.  The funds allocated for Palmetto Fellows Scholarships to South Carolina independent college students under this subsection shall be included in the annual appropriation to the Commission on Higher Education and may only be awarded to eligible students attending South Carolina independent colleges.

    (3)(4) Independent colleges for purposes of this subsection means those institutions eligible to participate in the South Carolina Tuition Grants Program as defined by Section 59-113-50.

    (4)(5) Public institutions shall receive the remaining allocation each year of the funds made available for higher education scholarship grants under Section 59-143-10.  One-half shall be used to provide higher education need-based grants as provided for in this act or otherwise provided for in state law, and one-half shall be used to provide Palmetto Fellows Scholarships under Section 59-104-20 of the 1976 Code in the manner the General Assembly shall provide in the annual general appropriations act.

    (5)(6) The maximum amount of funding provided for awards to students attending South Carolina independent colleges from the Children's Education Endowment Fund for South Carolina Tuition Grants and Palmetto Fellows scholarships shall not exceed the percentage funding calculation described under item (1) above(2).

Renumber sections to conform.

Amend title to conform.

  SHANNON ERICKSON for Committee.

    statement of estimated fiscal impact Explanation of Fiscal Impact State Expenditure This bill as amended modifies or repeals numerous sections in Title 59 and others related to CHE and other education related entities.

The bill requires SCDE to be the primary agency responsible for the creation of the South Carolina Educator Preparation Report card, with the assistance of CHE.

The bill also states that annual net Lottery proceeds and investment earnings must be used and carried forward to ensure that all LIFE, Palmetto Fellows, and HOPE Scholarships are fully funded annually.

Additionally, the bill specifies that if lottery revenue received is less than the amounts appropriated, other projects and programs will be reduced on a pro rata basis and that this reduction may not be applied to the funding of the scholarships.

The bill removes CHE from the review and approval process for the performance appraisal procedure for teaching and research faculty, professional librarians, academic administrators, and all other faculty at a post-secondary institution, leaving Admin as the sole entity responsible for reviewing and approving these procedures.

The amended bill also modifies code related to the disbursement of higher education scholarship grants from CHE to Tuition Grants for the purposes of providing need-based scholarships and grants to students attending independent colleges and universities in the state but does not adjust current levels of funding.

The bill further repeals a number of sections related to the Governor's Teaching Scholarship Loan Program, the implementation of a metric system, a state occupational training advisory committee, allocation of cutting edge research funds, distribution of catalog sales tax revenue for one fiscal year, a private college presidents advisory council, chiropractic college accreditation requirements, oversight of manufacturing extension partnership, a competitive undergraduate education grants program, endowed professorship funding, a research investment fund, criteria for research fund use, research reporting and review requirements, allocation of research funds, a model campus sexual assault policy, a National Guard college loan program, authority to rename an institution, formula funding for a laboratory school, and Lottery-funded teaching scholarship grants.

This bill is not expected to have an impact on CHE, SCDE, or Admin, as these agencies report that implementing the changes in the bill will be managed under normal operations.

The bill will also have no impact on scholarship funding, as it maintains the requirement that all LIFE, Palmetto Fellows, and HOPE Scholarships will not be reduced in the event that Lottery revenue falls below the appropriated amount.

The bill is also not expected to have an impact on state institutions of higher learning based on responses from USC, MUSC, CCU, CofC, and the Tech System.

The bill as amended will reduce the amount of Lottery scholarship funding transferred from CHE's need-based grant funding to the Tuition Grants Commission.