South Carolina S 94: SC Education Bank Act

Bill Text

2025-2026 Bill 94 Text of Previous Version (Jan. 17, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 94

Indicates Matter Stricken
Indicates 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 SO AS TO ENACT 
THE "SOUTH CAROLINA EDUCATION BANK ACT"; AND BY ADDING CHAPTER 59 TO TITLE 11 
SO AS TO CREATE THE "SOUTH CAROLINA EDUCATION BANK," TO ESTABLISH A GOVERNING BOARD, 
TO PROVIDE FOR THE POWERS OF THE BANK, TO FUND THE BANK, TO PROVIDE LIABILITY 
PROTECTIONS, TO PROVIDE FOR DEPOSITS, TO PROVIDE FOR ANNUAL REPORTING 
REQUIREMENTS, TO PROVIDE FOR LOCAL SCHOOL BOARD FUNDING REQUEST REQUIREMENTS, 
AND TO DEFINE NECESSARY TERMS.

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

SECTION 1. This act may be cited as the "South Carolina Education Bank Act".

SECTION 2. Title 11 of the S.C. Code is amended by adding:

CHAPTER 59

South Carolina Education Bank

 Section 
11-59-100. (A) There is created a 
body corporate and public and an instrumentality of the State to be known as 
the "South Carolina Education Bank".

 (B) 
The bank is governed by a board as provided in this chapter.

 (C) 
The corporate purpose of the bank is to select and assist in financing 
qualified projects by distributing fuds collected by the bank to governmental 
units and private entities for constructing and improving education-related 
facilities necessary for public education purposes. The exercise by the bank of 
a power conferred in this chapter is an essential public function.

 (D) 
The bank shall establish and maintain an interest-bearing state education 
account.

 Section 
11-59-110. (A) As used in this 
chapter unless the context clearly indicates otherwise:

 (1) 
"Bank" means the South Carolina Education Bank.

 (2) 
"Board" means the board of directors of the bank.

 (3) 
"Department" or "state department" means the State Department of 
Education.

 (4) 
"Eligible cost" means the costs for a qualified project that are permitted 
under applicable laws, requirements, procedures, and guidelines regarding 
establishing, operating, and providing assistance from the bank, including the 
costs of preliminary engineering, environmental studies, legal and management, 
facilities, and other costs necessary for the qualified project.

 (5) 
"Eligible project" means a capital development or improvement made to 
school-related infrastructure in a county. An eligible project does not include 
infrastructure maintenance or the construction of recreational facilities.

 (6) 
"Governmental unit" means a local school district board, municipal corporation, 
or county in this State, including combinations of two or more of these 
entities acting jointly to construct, own, or operate a qualified project, or 
any other sate or local authority, board, commission, agency, or department 
created by the General Assembly or pursuant to the Constitution and laws of 
this State that may construct, own, or operate a qualified project.

 (7) 
"Private entity" means a private person or entity that has entered into a 
contract with a governmental unit to design, finance, or construct an eligible 
project that is within the jurisdiction of the government unit that is 
responsible for complying with applicable statutory requirements.

 (8) 
"Qualified project" means an eligible project that has been selected by the 
bank to receive a disbursement from the bank.

 Section 
11-59-120. (A) The board is the 
governing board of the bank and consists of seven voting members as follows:

 (1) 
the secretary of the department;

 (2) 
two members appointed by the Governor, one of which shall serve as chairman;

 (3) 
two members appointed by the Speaker of the House of Representatives one of 
whom must be a member of the House of Representatives; and

 (4) 
two members appointed by the President of the Senate one of whom must be a 
member of the Senate.

 (B) 
Members appointed by the Governor, Speaker of the House of Representatives, and 
the President of the Senate shall serve terms coterminous with those of their 
appointed authority. The terms for the legislative members are coterminous with 
their terms of office. Any person appointed to fill a vacancy must be appointed 
in the same manner as the original appointment for the remainder of the 
unexpired term.

 (C) 
The board must elect the vice-chairman.

 Section 
11-59-130. (A) The bank has all the 
power necessary, useful, or appropriate to fund, operate, and administer the 
bank and to perform its other functions including, but not limited to, the 
power to:

 (1) 
have perpetual succession;

 (2) 
adopt, promulgate, amend, and repeal bylaws, not inconsistent with provisions 
in this chapter for the administration of the bank's affairs and the 
implementation of its functions, including the right of the board to select 
q