Indicates Matter Stricken

Indicates New Matter

Amended

March 20, 2024

H. 5164

Introduced by Reps. Erickson, G. M. Smith, Herbkersman, Hartnett, McGinnis, Pope, Schuessler, Bradley, Hager, Long, Vaughan, Bannister, Elliott, Willis, Yow, Hiott, Gilliam, Mitchell, Hardee, Whitmire, W. Newton, B. Newton, Davis, Gagnon, Hixon, Lowe, Thayer, West, Taylor, Crawford and Guest

S. Printed 03/20/24--H.

Read the first time February 28, 2024

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 59-8-110, RELATING TO DEFINITIONS CONCERNING THE EDUCATION SCHOLARSHIP TRUST FUND PROGRAM, SO AS TO REVISE SEVERAL DEFINITIONS; BY AMENDING SECTION 59-8-115, RELATING TO THE APPLICATION PROCESS FOR SCHOLARSHIPS, SO AS TO PROVIDE ADDITIONAL APPLICATION PROCESSES, AMONG OTHER THINGS; BY AMENDING SECTION 59-8-120, RELATING TO THE ESTABLISHMENT AND ADMINISTRATION OF THE TRUST FUND, SO AS TO PROVIDE CONFIDENTIALITY REQUIREMENTS FOR CERTAIN RELATED INFORMATION, TO REVISE THE FUNDING FORMULA, AND TO REVISE RELATED ADMINISTRATIVE PROCEDURES; BY AMENDING SECTION 59-8-125, RELATING TO FUNDING AND ADMINISTRATION OF THE PROGRAM, SO AS TO REVISE ADMINISTRATIVE FEES, AND TO REMOVE PROVISIONS ALLOWING THE USE OF QUALIFIED THIRD PARTIES TO MANAGE ACCOUNTS AND ADMINISTER RELATED FUNCTIONS, AMONG OTHER THINGS; BY AMENDING SECTION 59-8-130, RELATING TO REVERSION OF SCHOLARSHIP FUNDS UPON TERMINATION OF A SCHOLARSHIP, SO AS TO PROVIDE FOR THE RETURN OF REVERTED FUNDS IN CERTAIN CIRCUMSTANCES; BY AMENDING SECTION 59-8-135, RELATING TO LIMITATIONS ON SCHOLARSHIPS, SO AS TO REVISE THE LIMITATIONS, REQUIRE THE STATE DEPARTMENT OF EDUCATION TO SUBMIT AN ANNUAL BUDGET REQUEST BASED ON CERTAIN SCHOLARSHIP DEMAND AND USE INFORMATION, AND TO REMOVE OBSOLETE REVIEW REQUIREMENTS, AMONG OTHER THINGS; BY AMENDING SECTION 59-8-140, RELATING TO THE EDUCATION SERVICE PROVIDER APPLICATION REVIEW AND APPROVAL PROCESSES, SO AS TO REVISE CERTIFICATION RENEWAL REQUIREMENTS; BY AMENDING SECTION 59-8-145, RELATING TO THE STUDENT ELIGIBILITY NOTIFICATION PROCESS, SO AS TO PROVIDE THE DEPARTMENT MAY DECLARE A STUDENT INSTEAD OF A PARENT INELIGIBLE, AMONG OTHER THINGS; AND BY AMENDING SECTION 59-8-150, RELATING TO EDUCATION SERVICE PROVIDER REQUIREMENTS, SO AS TO REQUIRE PROVIDERS GIVE PARENTS SPECIFIC DOCUMENTATION FOR QUALIFIED GOODS AND SERVICES ACQUIRED, TO PROVIDE SURETY BOND REQUIREMENTS, AND TO REVISE ACCOUNTABILITY MEASURE REQUIREMENTS.

    Amend Title To Conform

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

SECTION 1.  Section 59-8-110 of the S.C. Code is amended to read:

    Section 59-8-110.  For purposes of this chapter:

    (1) "Department" means the South Carolina Department of Education.

    (2) "Education Scholarship Trust Fund", "ESTF", or "fund" means the individual account that is administered by the department to which funds are allocated to the parent of an eligible student to pay for qualifying expenses.

    (3) "Eligible school" means a South Carolina public school or an independent school that chooses to participate in the program.  "Eligible school" does not include a charter school."Eligible school" does not include a school in which a member of the General Assembly or an immediate family member of a member of the General Assembly has any ownership. For purposes of this section, "immediate family member" means as defined in Section 8-13-100(18).

    (4) "Eligible student" means a student who:

       (a) is a resident of this State;

       (b)(i) attended a public school in this State during the previous school year;

           (ii) had not yethas attained the age of five on or before September first of the previous school year but who has attained the age of five on or before September of the current school year in which scholarship funds are awarded; or

           (iii)(ii) received a scholarship pursuant to this chapter for the previous school year; and

       (c)(i) in School Year 2024-2025, has a household income that does not exceed two hundred percent of the federal poverty guidelines;

           (ii) in School Year 2025-2026, has a household income that does not exceed three hundred percent of the federal poverty guidelines; and

           (iii) in School Year 2026-2027, and all subsequent years, has a household income that does not exceed four hundred percent of the federal poverty guidelinesno income threshold may exist, but early application windows must be extended to identified groups pursuant to Section 59-8-115(B).

       "Eligible student" does notmay include students participating in the Educational Credit for Exceptional Needs Children's Fund program, as provided in Section 12-6-3790.

       Notwithstanding the provisions of item (b), "eligible student" also includes the child of active-duty military personnel who were killed while on active-duty status and the child of an active-duty member of the Armed Forces of the United States who has received permanent change of station orders to a military base and who, as a result, will reside in South Carolina for the current or upcoming school year; provided, however, the child must have attained the age of five on or before September first of the school year in which scholarship funds are awarded.

    (5) "IDEA" means the Individuals with Disabilities Education Act found in 20 U.S.C. Section 1400, et seq.

    (6) "Parent" means a resident of this State who is the natural or adoptive parent, legal guardian, custodian, or other person with legal authority to act on behalf of an eligible student.

    (7) "Education service provider" means a person or organization approved by the department that receives payments from ESTF to provide educational goods and services to scholarship students.

    (8) "Program" means the ESTF program created by this chapter.

    (9) "Resident school district" means the public school district in which the student is domiciled.

    (10) "Scholarship" means education funding alloc