State Employee Grievance Procedure Act
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Sam Wilkins, Director
South Carolina Office
of Human Resources
8301 Parklane Road
Suite A220
Columbia, SC 29223
Phone: (803) 896-5300

INSPECTOR GENERAL'S
FRAUD HOTLINE

(State Agency fraud only)

1-855-SCFRAUD
or
1-855-723-7283

ARTICLE 5

SECTION 8-17-310. Legislative findings; declaration of purpose; short title.

The General Assembly finds that harmonious relations between public employers
and public employees are a necessary and most important factor in the effective
and efficient operation of government, and that a proper forum for the
understanding and resolution of employee grievances will contribute to the
establishment and maintenance of harmony, good faith, and the quality of public
service. The General Assembly also recognizes that the most effective and cost
efficient means of resolving grievances occurs at the lowest level, and state
agencies are encouraged to use methods of alternative dispute resolution to
avoid a grievance hearing and further litigation. It is for the protection and
in the interests of both the employee and the agency via a neutral method of
dispute resolution and fair administrative review, that this act, which may be
cited as the "State Employee Grievance Procedure Act", is enacted.

SECTION 8-17-320. Definitions.

As used in this article, unless the context clearly indicates otherwise:
(1) "Agency" means a department, institution of higher learning, board,
commission, or school that is a governmental unit of the State of South
Carolina. Special purpose districts, political subdivisions, and other units of
local government are excluded from this definition.
(2) "Appeal" means the request by a covered employee to the State Human
Resources Director for review of an agency's final decision concerning a
grievance.
(3) "Board" means the State Budget and Control Board.
(4) "Calendar days" means the sequential days of a year. The time must be
computed by excluding the first day and including the last. If the last day
falls on a Saturday, Sunday, or legal holiday, it must be excluded.
(5) "Class" means a group of positions sufficiently similar in the duties
performed, degree of supervision exercised or received, minimum requirements of
education, experience or skill, and the other characteristics that the same
state class title and the same state salary range are applied to each position
in the group by the Office of Human Resources.
(6) "Committee" means the State Employee Grievance Committee.
(7) "Covered employee" means a full-time or part-time employee occupying a part
or all of an established full-time equivalent (FTE) position who has completed
the probationary period and has a "meets" or higher overall rating on the
employee's performance evaluation and who has grievance rights. Instructional
personnel are covered upon the completion of one academic year except for
faculty at state technical colleges of not more than two full academic years'
duration. If an employee does not receive an evaluation before the official
review date, the employee must be considered to have performed in a
satisfactory manner and be a covered employee. This definition does not include
employees in positions such as temporary, temporary grant, or time-limited
employees who do not have grievance rights.
(8) "Demotion" means the assignment of an employee by the appointing authority
from one established position to a different established position having a
lower state salary range.
(9) "Deputy director" means an employee who has been appointed under the
provisions of Section 1-30-10(E), oversees a division, and reports directly to
the agency head.
(10) "Full-time equivalent" or "FTE" means a value expressing a percentage of
time in hours and of funds related to a particular position authorized by
appropriations acts enacted by the General Assembly.
(11) "Grievance" means a complaint filed by a covered employee or the
employee's representative regarding an adverse employment action designated in
Section 8-17-330 taken by an agency.
(12) "Instructional personnel" means employees of an agency that has primarily
an educational mission, excluding the state technical colleges and excluding
those employees exempted in Section 8-17-370(10) who work an academic year.
(13) "Involuntary reassignment" means the movement of an employee's principal
place of employment in excess of thirty miles from the prior work station at
the initiative of the agency. The reassignment of an employee by an agency in
excess of thirty miles from the prior work station to the nearest facility with
an available position having the same state salary range for which the employee
is qualified is not considered involuntary reassignment.
(14) "Mediation" means an alternative dispute resolution process whereby a
mediator who is an impartial third party acts to encourage and facilitate the
resolution of a dispute without prescribing what it should be. The process is
informal and non-adversarial with the objective of helping the disputing
parties reach a mutually acceptable agreement.
(15) "Mediation-arbitration" means an alternative dispute resolution process
that provides for the submission of an appeal to a mediator-arbitrator, an
impartial third party who conducts conferences to attempt to resolve the
grievance by mediation and render a decision that is final and binding on the
parties if the appeal is not mediated.
(16) "Probationary employee" means a full-time or part-time employee occupying
a part or all of an established FTE position in the initial working test period
of employment with the State of twelve months' duration for non-instructional
personnel, of the academic year duration for instructional personnel except for
those at state technical colleges, or of not more than two full academic years'
duration for faculty at state technical colleges. An employee who receives an
unsatisfactory performance appraisal during the probationary period must be
terminated before becoming a covered employee.
(17) "Promotion" means an employee's change from a position in one class to a
position in another class having a higher state salary range. Failure to be
selected for a promotion is not an adverse employment action that can be
considered as a grievance or appeal.
(18) "Punitive reclassification" means the assignment of a position in one
class to a different lower class with the sole purpose to penalize the covered
employee.
(19) "Reassignment" means the movement within an agency of an employee from one
position to another position having the same state salary range, or the
movement of a position within an agency which does not require
reclassification.
(20) "Reclassification" means the assignment of a position in one class to
another class which is the result of a natural or an organizational change in
duties or responsibilities of the position.
(21) "Reduction in force" means a determination made by an agency head to
eliminate one or more filled positions in one or more organizational units
within the agency due to budgetary limitations, shortage of work, or
organizational changes.
(22) "Salary decrease based on performance" means the reduction of a covered
employee's compensation based on the results of an Employee Performance
Management System (EPMS) evaluation.
(23) "State Human Resources Director" means the head of the Office of Human
Resources of the State Budget and Control Board, or his designee.
(24) "Suspension" means an enforced leave of absence without pay pending
investigation of charges against an employee or for disciplinary purposes.
(25) "Temporary employee" means a full-time or part-time employee who does not
occupy an FTE position, whose employment is not to exceed one year, and who is
not a covered employee.
(26) "Termination" means the action taken by an agency against an employee to
separate the employee involuntarily from employment.
(27) "Transfer" means the movement to a different agency of an employee from
one position to another position having the same state salary range, or the
movement of a position from one agency to another agency which does not require
reclassification.

SECTION 8-17-330. Agency employee grievance plans; procedures; appeals.

Each agency shall establish an agency employee grievance procedure that must be reduced to writing and submitted for approval to the Office of Human Resources. A copy of the approved agency grievance procedure must be made available to covered employees of the agency. The provisions of the State Administrative Procedures Act apply in proceedings before the State Employee Grievance Committee. At other levels the State Administrative Procedures Act does not apply, but the covered employee has the right to a representative, including counsel. When a final decision is rendered, it must be given to the covered employee or the employee's representative in writing. If the covered employee chooses to exercise the right to counsel, the employee does so at his own expense.

The procedure must provide that all grievances of agency actions affecting a
covered employee must be initiated internally by such employee within fourteen
calendar days of the effective date of the action and that the agency shall
make a final decision on a grievance within forty-five calendar days of the
filing of the grievance by the covered employee. Failure by the agency to make
a final decision on the grievance within forty-five calendar days after the
filing of the grievance is considered an adverse decision, and the covered
employee may appeal thereafter to the State Human Resources Director. The
internal time periods of the agency grievance procedure may be waived upon the
mutual written agreement of both parties. The forty-five-calendar-day period
for action by the agency may not be waived except by mutual written agreement
of both parties. The time periods for appeal to the State Human Resources
Director may not be waived.

A covered employee who wishes to appeal the decision of the agency grievance
procedure to the State Human Resources Director shall file an appeal within ten
calendar days of receipt of the decision from the agency head or his designee
or within fifty-five calendar days after the employee files the grievance with
the agency, whichever occurs later. The covered employee or the employee's
representative shall file the request in writing with the State Human Resources
Director. Failure to file an appeal with the State Human Resources Director
within ten calendar days of the agency's final decision or fifty-five calendar
days from the initial grievance, whichever occurs later, constitutes a waiver
of the right to appeal.

An employee must not be disciplined or otherwise prejudiced in employment for
exercising rights or testifying under these processes.
As used in this article, a covered employee may file a grievance or appeal
concerning the following adverse employment actions: terminations, suspensions,
involuntary reassignments, and demotions. Reclassifications are considered a
grievance only if an agency, or an appeal if the State Human Resources
Director, determines that there is a material issue of fact that the action is
a punitive reclassification. However, reclassifications, reassignments, and
transfers within the same state salary range are not adverse employment actions
which may be considered grievances or appeals. Promotions are not adverse
employment actions which may be considered grievances or appeals except in
instances where the agency, or in the case of appeals, the State Human
Resources Director, determines that there is a material issue of fact as to
whether or not an agency has considered a qualified covered employee for a
position for which the employee formally applied or would have applied if the
employee had known of the promotional opportunity. For purposes of this
article, when an agency promotes an employee one organizational level above the
promoted employee's former level, that action is not a grievance or appeal for
any other qualified covered employee. Salary decreases based on performance are
adverse employment actions that may be considered as grievances or appeals. A
reduction in force is an adverse employment action considered as a grievance
only if the agency, or as an appeal if the State Human Resources Director,
determines that there is a material issue of fact that the agency
inconsistently or improperly applied its reduction in force policy or plan.

A covered employee has the right to appeal to the State Human Resources
Director an adverse employment action involving the issues specified in this
section after all administrative remedies to secure relief within the agency
have been exhausted.

SECTION 8-17-340. State Employee Grievance Committee; hearings;
procedures; appeals.

(A) There is created the State Employee Grievance Committee constituted and
appointed to serve as an administrative hearing body for state employee
appeals. The State Human Resources Director shall forward to the committee for
a hearing all appeals which meet jurisdictional requirements and relate to the
following adverse employment actions: terminations, salary decreases based on
performance, demotions, suspensions for more than ten days, and reductions in
force when the State Human Resources Director determines there is a material
issue of fact regarding inconsistent or improper application of the agency's
reduction in force plan or policy. The committee shall consist of at least
eighteen and not more than twenty-four members who must be appointed by the
State Budget and Control Board to serve for terms of three years and until
their successors are appointed and qualify. All members of the committee must
be selected on a broadly representative basis from among the personnel of the
various state agencies as recommended by the agency head.
The committee annually shall elect a chairman from among its members to serve
for a one-year term. In addition, the State Human Resources Director may divide
the committee into panels of five members to sit at hearings and designate a
member to serve as the presiding officer and a member to serve as secretary at
all panel hearings. A quorum of a panel consists of at least three members.

Vacancies occurring for a reason other than expiration of a term must be filled by the State Budget and Control Board in the same manner as the original appointments. Members may be reappointed for succeeding terms at the discretion of the State Budget and Control Board. The committee and the State Human Resources Director may recommend to the State Budget and Control Board that it promulgate regulations as necessary to carry out the provisions of this article and the board is authorized to promulgate these and other necessary regulations.

Committee members shall receive their normal pay for the time they are required
to be away from their regular assignments. They may be reimbursed as provided
by law from funds appropriated to the State Budget and Control Board for
expenses, such as meals, lodging, and mileage, when using their personal
automobiles, incurred in connection with the performance of necessary committee
business.

(B) Whenever an appeal before the committee is initiated by or involves an
employee of an agency of which a committee member also is an employee or
involves another impermissible conflict of interest, the member is disqualified
from participating in the hearing.

(C) The committee chairman or a designee shall conduct the grievance hearing in
an equitable, orderly, and expeditious fashion. The committee chairman or a
designee is authorized to administer oaths; to issue subpoenas for files,
records, and papers; to call additional witnesses; and to subpoena witnesses.
The State Budget and Control Board is authorized to request assignment by the
Attorney General of one or more of his staff attorneys admitted to practice law
in South Carolina to serve in the capacity of committee attorney. If the
Attorney General is not able to provide sufficient legal staff for this purpose
due to an impermissible conflict of interest, the State Budget and Control
Board, with the approval of the Attorney General, is authorized to secure other
qualified attorneys to serve as committee counsel. The committee attorney shall
determine the order and relevance of the testimony and the appearance of
witnesses, and shall rule on all motions, and all legal issues. The parties are
bound by the decisions of the committee chairman or a designee or the committee
attorney insofar as these hearings are concerned.

(D) At these hearings the employee and the agency are allowed representatives,
including counsel. During the course of the hearing the parties and witnesses
also shall respond to questions asked by the committee attorney or the
committee members. The committee attorney or the attorney for the Office of
Human Resources may assist the committee in the preparation of its findings of
fact, statements of policy, and conclusions of law. The committee attorney may
be present during the committee's deliberations on its decision only upon the
request of the presiding officer. Within twenty calendar days of the conclusion
of the hearing, the committee shall render its decision on the appeal. The
decision shall include the committee's findings of fact, statements of policy,
and conclusions of law.

(E) The committee may sustain, reject, or modify a grievance hearing decision
of an agency as follows:
(1) In cases involving actual or threatened abuse, neglect, or exploitation, to
include those terms as they may be defined in Section 43-35-10 or 20-7-490, of
a patient, client, or inmate by an employee, the agency's decision must be
given greater deference and may not be altered or overruled by the committee,
unless the covered employee establishes that:
(a) The agency's finding that the covered employee abused, neglected, or
exploited or threatened to abuse, neglect, or exploit a patient, client, or
inmate is clearly erroneous in view of reliable, probative, and substantial
evidence;
(b) The agency's disciplinary action was not within its established personnel
policies, procedures, and regulations; or
(c) The agency's action was arbitrary and capricious.
(2) In all other cases, the committee may not alter or overrule an agency's
decision, unless the covered employee establishes that the agency's decision is
one or more of the following and prejudices substantial rights of the covered
employee:
(a) in violation of constitutional or statutory provisions;
(b) in excess of the statutory authority of the agency;
(c) made upon unlawful procedure;
(d) affected by other error of law;
(e) clearly erroneous in view of the reliable, probative, and substantial
evidence on the whole record; or
(f) arbitrary or capricious or characterized by abuse of discretion or clearly
unwarranted exercise of discretion.

(F) The decision of the committee members must be transmitted in writing to the employee and the employing agency and is final in terms of administrative review. As a result of this decision, either the covered employee or the agency may request a rehearing or reconsideration within thirty calendar days from receipt of the decision. A notice of appeal seeking appellate review of the final decision may be made by the covered employee to the Administrative Law Court as provided in Sections 1-23-380(B) and 1-23-600(D). Only after an agency submits a written request to the Office of Human Resources seeking approval of the board may the agency file a notice of appeal seeking appellate review to the Administrative Law Court. However, the agency may perfect the appeal only upon approval of the board. The covered employee or the agency who first files the notice of appeal seeking appellate review is responsible for preparation of a transcript and paying the costs of preparation of a transcript of the audio tapes of a hearing required for certification of the record to the Administrative Law Court. Neither the board nor the Office of Human Resources nor the State Human Resources Director nor the committee may be named in this notice of appeal. However, any of these entities are entitled to make a motion in the Administrative Law Court to be allowed to intervene to participate in the appeal for appropriate reasons including their interest in defending their policies.

SECTION 8-17-345. Mediation-arbitration of employment action appeals.

The State Human Resources Director shall forward to a mediator-arbitrator all
appeals which meet jurisdictional requirements and relate to the appeal of the
following adverse employment actions: lack of promotional consideration and
punitive reclassifications when the State Human Resources Director determines
there is a material issue of fact regarding these issues, suspensions for ten
days or fewer, and involuntary reassignments. In these cases, the arbitration
decision is final. The provisions of the State Administrative Procedures Act do
not apply to the mediation-arbitration proceedings.
The mediator-arbitrator must be assigned by the State Human Resources Director
and shall serve as an impartial third party to hold conferences to mediate the
appeal and if the appeal is not mediated, determine whether the covered
employee substantiates that the agency's decision was not reasonable. The
mediator-arbitrator shall review the documents which have been submitted by
each party and shall schedule a time to meet with both parties, jointly or
independently. Failure of the covered employee or the employee's representative
to attend a conference without reasonable justification constitutes a waiver of
the employee's rights to pursue the appeal further. The State Human Resources
Director shall determine whether or not reasonable justification exists based
on documents submitted by the parties.
The conferences with the parties are confidential and limited to the parties
and their representatives, but other persons may attend with the permission of
the parties and the mediator-arbitrator. The parties or their representatives
attending a conference must have full authority to negotiate and recommend
settlement. The mediator-arbitrator may not be compelled by subpoena or
otherwise to divulge any records or discussions or to testify in regard to the
mediation-arbitration in any adversary proceeding or judicial forum. All
records, reports, documents, discussions, and other information received by the
mediator-arbitrator while serving in that capacity are confidential, except the
documents which have been submitted by each party shall be the record during
judicial review.

If an agreement by the two parties is not reached, the mediator-arbitrator
shall transmit to both parties a final written decision based on the
information presented during the process concerning the appeal within
forty-five calendar days after the mediator-arbitrator conducts a conference
with either or both parties. This forty-five-day period may be extended by the
State Human Resources Director under extenuating circumstances. The
mediator-arbitrator shall request assistance from the attorney for the Office
of Human Resources in the preparation of the final written decision. As a
result of this decision, either the covered employee or the agency may request
a reconsideration within thirty calendar days from receipt of the decision. The
mediator-arbitrator shall request assistance from the attorney for the Office
of Human Resources in the preparation of the written response to the request
for reconsideration. Petition for judicial review of the final decision may be
made by the covered employee to the court of common pleas of the county in
which the covered employee's place of employment is located. Only after an
agency submits a written request to the Office of Human Resources seeking
approval of the board may the agency initiate a petition for judicial review to
the court of common pleas of the county in which the covered employee's place
of employment is located. However, the agency may perfect the petition for
judicial review only upon approval of the board. The record for judicial review
shall be limited to the documents which have been submitted by each party and
the final written decision of the mediator-arbitrator. Neither the board nor
the Office of Human Resources nor the State Human Resources Director nor the
mediator-arbitrator may be named in this petition for judicial review. However,
any of these entities are entitled to make a motion in the court of common
pleas to be allowed to intervene to participate in the petition for judicial
review for appropriate reasons including their interest in defending their
policies.

SECTION 8-17-350. Duties of state personnel director relative to
grievance appeals from agency decisions.

When an appeal is filed, the State Human Resources Director shall assemble all
records, reports, and documentation of the earlier proceedings on the grievance
and review the case to ascertain that there has been full compliance with
established grievance policies, procedures, and regulations within the agency
involved and shall determine whether or not the action is grievable to the
committee or a mediator-arbitrator. The attorney for the Office of Human
Resources or a committee attorney shall provide the State Human Resources
Director legal advice requested to assist the State Human Resources Director in
complying with the provisions of this article. If the State Human Resources
Director determines that the action is grievable, he shall forward the appeal
and documents either (1) to the mediator-arbitrator for mediation-arbitration
or (2) after the mediation process has been completed, to the designated
committee panel and to the committee attorney for a hearing, whichever is
appropriate based on the type of adverse employment action. The State Human
Resources Director shall notify committee members, the committee attorney, and
the parties concerned of the date, time, and place of hearings. The documents
transmitted by the State Human Resources Director to the designated committee
panel and committee attorney must be marked into evidence as "Committee Exhibit I" during the committee chairman's opening statement at the beginning of the hearing unless excluded by the committee attorney based on a prior objection raised by either party.

The State Human Resources Director is responsible for recording the hearings,
and shall provide to the committee from the resources of the Office of Human
Resources, the administrative and clerical services required.

SECTION 8-17-360. Mediation of grievances by state personnel director.

Once an appeal has been made to the State Human Resources Director and has been determined to meet all jurisdictional requirements, but before forwarding the appeal to the committee, the State Human Resources Director shall appoint a mediator to the appeal of the following adverse employment actions: terminations, salary decreases based on performance, demotions, suspensions for more than ten days, and reductions in force when the State Human Resources Director determines there is a material issue of fact regarding inconsistent or improper application of the agency's reduction in force plan or policy. The mediator must be an impartial third party who shall act to encourage and facilitate the resolution of the dispute through mediation. The mediator shall review the documents which have been submitted by each party and shall schedule a time to meet with both parties, jointly or independently, to attempt to resolve the matter. Mediation conferences are confidential and limited to the parties and their representatives. Other persons may attend only with the permission of the parties and the mediator. The parties or their representatives attending a mediation conference must have full authority to negotiate and recommend settlement. Failure of the covered employee or the employee's representative to attend a mediation conference without reasonable justification constitutes a waiver of the employee's rights to further pursue the appeal. The State Human Resources Director shall determine whether or not reasonable justification exists based on documents submitted by the parties. The mediator may not be compelled by subpoena or otherwise to divulge records or discussions or to testify in regard to the mediation in any adversary proceeding or judicial forum. All records, reports, documents, discussions, and other information received by the mediator while serving in that capacity are confidential.

SECTION 8-17-370. Exemptions.

SECTION 8-17-370. Exemptions. The provisions of this article do not apply to:
(1) members, officers, or employees of the General Assembly;
(2) employees within the Office of the Governor who work at the mansion or in the State House or those employees appointed by the Governor to serve at or above the organizational level of assistant directors of the individual program components;
(3) elected public officials of this State or persons appointed to fill vacancies in these offices;
(4) all judges, officers, and employees of the Judicial Department; jurors; all employees of the Commission on Prosecution Coordination; and the judges, officers, and employees of the Administrative Law Judge Division;
(5) members of state boards, commissions, councils, advisory councils, or committees compensated on a per diem basis;
(6) inmate help in a charitable, penal, or correctional institution, residents of rehabilitation facilities, or students employed in institutions of learning;
(7) part-time professional personnel engaged in consultant or contractual services;
(8) an agency head who has the authority and responsibility for an agency within state government including the divisions of the State Budget and Control Board;
(9) employees of the Public Service Authority, State Ports Authority, the Jobs-Economic Development Authority, or the Division of Public Railways and the Division of Savannah Valley Development of the Department of Commerce;
(10) teaching or research faculty, professional librarians, academic administrators, or other persons holding faculty appointments at a four-year post-secondary educational institution, including its branch campuses, if any, as defined in Section 59-107-10;
(11) athletic coaches and unclassified employees in the athletic departments of four-year post-secondary educational institutions as defined in Section 59-107-10;
(12) deputy directors as defined in Section 8-17-320;
(13) regional and county directors of the Department of Social Services as defined in Section 43-3-40(B);
(14) employees of the Medical University Hospital Authority, provided the Medical University Hospital Authority has promulgated an employee grievance plan in accordance with its enabling provision;
(15) presidents of the South Carolina Technical College System;
(16) a retired member of the South Carolina Police Officers Retirement System or a retired member of the South Carolina Retirement System who is hired by an agency to fill all or some fraction of a full-time equivalent (FTE) position covered by the State Employee Grievance Procedure Act; and
(17) notwithstanding the provisions of Section 9-1-2210(E), any participant in the Teacher and Employee Retention Incentive Program.
(18) the chief investment officer and all other employees of the Retirement System Investment Commission.
(19) employees of the Office of the Lieutenant Governor if the employees report directly to the Lt. Governor or report directly to a person who reports directly to the Lieutenant Governor.

SECTION 8-17-375. Reassignment, termination, or reduction of compensation of unclassified executive department employees appointed by governing board subject to Senate confirmation.

Notwithstanding any other provision of law, employees of an executive department of this State, except for the Department of Transportation, enumerated in Section 1-30-10(A) with a governing board who are unclassified, whose employment or compensation are decided by the governing board subject to specified approvals provided by law, and whose appointment or employment is subject to Senate confirmation may not be reassigned, terminated, or have their compensation reduced, except by majority vote of the governing board and approval by the Senate upon advice and consent prior to the action being taken or an interim appointment being made.

SECTION 8-17-380. Grievance and performance appraisal procedure for
academic employees.

With respect to the teaching and research faculty, professional librarians,
academic administrators, and all other persons holding faculty appointments at
any post-secondary educational institutions described in item (10) of SECTION
8-17-370, each such institution, subject to the approval of the State Budget
and Control Board or its designee and the Commission on Higher Education, shall
establish in writing:
(a) A performance appraisal procedure which shall assure:
(1) annual review and evaluation of such employees;
(2) written findings;
(3) review of evaluations with each covered employee;
(4) retention of performance appraisals and written comments of such employee,
if any, in a permanent file with right of full disclosure to the employee.
(b) A grievance procedure which shall at an appropriate stage provide a hearing
for such employees before an individual or committee designated for such
purposes, at which the employee shall have the right to representation by
counsel and the opportunity to present evidence in his behalf. Any such
procedure shall include the right of the employee to appeal the post-hearing
decision to the governing board of the institution, or a committee designated
by the board for this purpose, such appeal to be limited to the record of the
hearing. Discrimination in compensation, promotion, and work assignment shall
be subjects for consideration by such grievance procedure. Dismissal of tenured
or other permanent employees and dismissal prior to the end of an employment
contract term shall be only for cause, and shall be subject for consideration
by such grievance procedure. The granting or the failure to grant tenured
status to such employees or non-renewal of employment contracts at the end of
the contract term shall not be subjects for consideration by such grievance
procedure.

The grievance and performance appraisal procedure provided for herein shall be
submitted to the State Budget and Control Board or its designee and the
Commission on Higher Education for approval within six months after the
establishment of any new institution.