All logs shall be signed by the parties using the flight
and the signatures shall be maintained as part of the perma-
nent record of any agency. All passengers shall be listed
on the flight log by their legal name; passengers flying
with an appropriate official of SLED or the State Develop-
ment Board whose confidentiality must, in the opinion of
SLED or the Board, be protected shall be listed in writing
on the flight log as "Confidential Passenger of SLED or
State Development Board (strike one)" and the appropriate
official of SLED or the Board shall certify to the agency
operating the aircraft the necessity for such
confidentiality.
Violation of the above provisions of this section is prima
facie evidence of a violation of Section 8-13-410(1) of the
1976 Code and shall subject a violating member of the Gen-
eral Assembly to the ethics procedure of his appropriate
house and shall subject a violating member of a state board,
commission or committee, or a state official to the applica-
ble ethics procedure relating to them as provided by law.
The above provisions do not apply to aircraft of the Aer-
onautics Commission when used by the Medical University of
South Carolina, nor to aircraft of the athletic department
or the educational foundations of any state-supported insti-
tution of higher education.
Aircraft owned by agencies of state government shall not
be leased to individuals for their personal use.
129.38. Professional and Occupational Licensing Agencies
must generate revenue equal to 115 percent of their appro-
priation and are exempt from budget reductions. In any year
during which any Professional and Occupational Licensing
Agency does not generate the required revenue as provided
above, it shall generate sufficient revenue in the succeed-
ing year to offset the prior deficit, in addition to meeting
requirements for the current year. Professional and Occupa-
tional Licensing Boards may adjust fees, if necessary, to
generate revenue at least fifteen percent above the 1989-90
state appropriation.
129.39. All agencies are directed to assist the U. S.
Post Office in a cost study of the savings which may be re-
alized through the use of the zip plus four system.
129.40. Any employee who is approved for dual employment
must be paid in a timely manner. To assist in timely pay-
ments, the secondary agency shall transfer any required
funds necessary to fund the dual employment to the primary
agency within forty-five days of the beginning of the em-
ployment.
129.41. The Budget and Control Board, through the Infor-
mation Technology Planning Process of the Division of Re-
search and Statistical Services, is authorized and directed
to identify all expenditures and requested increases for in-
formation technology for Agencies, Institutions or Depart-
ments, with the exception of colleges and universities,
compile the request into one report, evaluate and place pri-
orities on each request, and recommend funding levels. No
agency shall commit to expend more funds for information
technology than allocated to the agency for the purpose
without first receiving an approved transfer of such funds
from other budget items.
129.42. (A) No state agency, department, board, commit-
tee, commission, or authority, may increase an existing fee
for performing any duty, responsibility, or function unless
the fee for performing the particular duty, responsibility,
or function is authorized by statutory law and set by regu-
lation except as provided in this paragraph.
(B) This paragraph does not apply to:
(1) state-supported governmental health care facilities;
(2) state-supported schools, colleges, and universities;
(3) educational, entertainment, recreational, cultural,
and training programs;
(4) the State Board of Financial Institutions;
(5) sales by state agencies of goods or tangible pro-
ducts produced for or by these agencies;
(6) charges by state agencies for room and board pro-
vided on state-owned property;
(7) application fees for recreational activities spon-
sored by state agencies and conducted on a draw or lottery
basis;
(8) court fees or fines levied in a judicial or
adjudicatory proceeding;
(9) the South Carolina Public Service Authority or the
South Carolina Ports Authority.
(C) This paragraph does not prohibit a state agency, de-
partment, board, committee, or commission from increasing
fees for services provided to other state agencies, depart-
ments, boards, committees, commissions, political subd-
ivisions, or fees for health care and laboratory services
regardless of whether the fee is set by statute.
(D) Statutory law for purposes of this paragraph does not
include regulations promulgated pursuant to the State Admin-
istrative Procedures Act.
129.43. There is established a committee to study an Al-
ternate Electronic Funds Transfer System to deliver benefits
to qualified recipients. The committee shall consist of one
representative from each of the following agencies: The
S.C. Department of Social Services, S.C. State Health and
Human Services Finance Commission, the S.C. Employment Secu-
rity Commission, the State Reorganization Commission, and
the State Treasurer. One member each shall be appointed by
the President of the Senate, the Speaker of the House of
Representatives, and the Governor. The committee shall de-
velop recommendations concerning the feasibility of pursuing
electronic means by which client benefits can be distrib-
uted. The committee shall determine the short-term and
long-term costs to the state, as well as potential benefits,
including the savings that such electronic benefit transfer
systems could realize. The committee shall make recommen-
dations to the State Board of Social Services relative to
the implementation of a pilot project. A final report of
the committee's recommendations shall be submitted to the
General Assembly no later than January 15, 1990.
129.44. There is established a study committee consisting
of nine members to study the feasibility and legal impli-
cations of legislation creating a South Carolina Indian Af-
fairs Commission. Three members must be appointed by the
President of the Senate, three members must be appointed by
the Speaker of the House of Representatives, and three mem-
bers must be appointed by the Governor. Staff for the study
committee must be furnished by the Attorney General. The
study committee shall report its findings and recommen-
dations to the Governor and the General Assembly no later
than January 15, 1990. Expenses of the study committee must
be paid from approved accounts of both houses.
129.45. Notwithstanding any other provision of law, agen-
cies appropriated case services funds who routinely receive
prior year case service billings after the old fiscal year
has been officially closed are authorized to pay these case
service obligations with current funds. This authorization
does not apply to billings on hand that have been through a
timely agency payment approval process when the old fiscal
year closes.
129.46. There is hereby created an ad hoc Task Force on
Supercomputers, composed of two members appointed by the
Governor, one of whom shall be designated by the Governor as
Chairman, one member appointed by the Chairman of the Com-
mission on Higher Education, one member appointed by the
Chairman of the House Ways and Means Committee, one member
appointed by the Chairman of the Senate Finance Committee,
one member appointed by the President of Clemson University,
one member appointed by the President of the University of
South Carolina, one member appointed by the President of the
Medical University of South Carolina and the Director of the
Budget and Control Board Division of Research and Statistics
or his designee.
The staff of the Commission on Higher Education shall
serve as staff for the Task Force. The cost of conducting
this study and providing technical consultants and such
other support as the Task Force may require shall not exceed
$20,000. Such cost shall be apportioned equally between the
Governor's Office and the Commission on Higher Education.
Members of the Task Force will serve without per diem but
may be reimbursed for such reasonable travel costs as may be
required.
The Task Force shall assess the need, present and future,
for the acquisition and use of one or more supercomputers by
the State to serve economic development programs of the
State and research needs of the public institutions of
higher education.
In the event that the Task Force finds a need for State
acquisition and operation in the near future of such a ma-
chine, the Task Force shall further:
1. Examine commercial hardware and software available and
determine the likely initial capital cost to be re-
quired, including the cost of necessary physical facili-
ties; and indicating the cost of new interstate data
links which may be required; and possible sources of fi-
nancing.
2. Determine the likely cost of annual operations including
managerial, technical and support staff, network costs,
training costs, utility costs and the like.
3. Determine the optimum location for the facility or fa-
cilities.
4. Determine a management structure and operational means
by which access to such a facility by all public insti-
tutions of higher education, other state agencies, and
by industrial or governmental research and development
laboratories within the State may be assessed.
The Task Force shall submit its report by August 1, 1989,
to the Governor, the Commission on Higher Education, the
Ways and Means Committee, and the Senate Finance Committee.
No Institution of Higher Education may spend or commit
funds for the purchase and operation of additional super
computer facilities unless designated by the Task Force as
an appropriate institution for additional super computer fa-
cilities.
Only designated super computer facilities will be eligible
to apply for unique acquisition and operating funds for su-
per computer activity in any year.
129.47. It is the policy of the State of South Carolina
to recruit, hire, train, and promote employees without dis-
crimination because of race, color, sex, national origin,
age, religion or physical disability. This policy is to ap-
ply to all levels and phases of personnel within state gov-
ernment, including but not limited to recruiting, hiring,
compensation, benefits, promotions, transfers, layoffs, re-
calls from layoffs, and educational, social, or recreational
programs. It is the policy of the State to take affirmative
action to remove the disparate effects of past discrimi-
nation, if any, because of race, color, sex, national ori-
gin, age, religion or physical disability.
Each state agency shall submit to the State Human Affairs
Commission employment and filled vacancy data by race and
sex by October 31, of each year.
In accordance with Section 1-13-110 of the South Carolina
Code of Laws of 1976, as amended, the Human Affairs Commis-
sion shall submit a report on the status of State Agencies'
Affirmative Action Plans and Programs to the General Assem-
bly by February 1 each year. This report shall contain the
total number of persons employed in each job group, by race
and sex, at the end of the preceding reporting period, a
breakdown by race and sex of those hired or promoted from
within the agency during the reporting period, and an indi-
cation of whether affirmative action goals were achieved.
For each job group referenced in the Human Affairs report,
where the hiring of personnel does not reflect the percent-
age goals established in the agency's affirmative action
plan for the year in question, the State agency shall submit
a detailed explanation to the Human Affairs Commission by
February 15, explaining why goals were not achieved.
The Human Affairs Commission shall review the explanations
and notify the Budget and Control Board of any agency not in
satisfactory compliance with meeting its stated goals.
The Budget and Control Board shall notify any agency not
in compliance that their request for additional appropri-
ations for the next appropriation cycle, may not be proc-
essed until such time as the Budget and Control Board, after
consultation with the Human Affairs Commission, is satisfied
that the agency is making a good faith effort to comply with
its affirmative action plan, and that the compliance must be
accomplished within a reasonable length of time to be deter-
mined by the mission and circumstances of the agency. This
requirement shall not affect additional appropriation re-
quests for public assistance payments or aid to entities.
This section does not apply to those agencies that have
been exempted from the reporting requirements of the Human
Affairs Commission.
129.48. The General Assembly finds that the operation of
health and human services may be enhanced by closer working
relationships among agencies at the state and local level.
The General Assembly finds that coordination at both levels
provides opportunities to serve the citizens of South
Carolina better through (1) continued expansion of services
integration and (2) stronger communication among agencies
delivering services.
In order to assist in, recommend, develop policy for, and
supervise the expenditure of funds for the continuation of
service integration in South Carolina, there is created a
Human Services Coordinating Council, hereinafter, entitled
the Council. The Council shall consist of:
(1) The chairperson of the boards of the following
agencies: Commission on Aging, Commission on Alcohol and
Drug Abuse, Commission on the Blind, Children's Foster Care
Review Board, Department of Education, Department of Health
and Environmental Control, State Health and Human Services
Finance Commission, Department of Youth Services, Department
of Veterans' Affairs, John De La Howe School, Department of
Mental Health, Department of Mental Retardation, School for
Deaf and Blind, Department of Social Services, Department of
Vocational Rehabilitation, Guardian ad Litem Program,
Continuum of Care for Emotionally Disturbed Children, Educa-
tional Television, and Wil Lou Gray Opportunity School.
These chairpersons shall receive the usual mileage,
subsistence, and per diem provided by law for members of
committees, boards, and commissions. Mileage, subsistence,
and per diem must be paid from the approved accounts of
their respective boards or commissions.
(2) The chief executive officer of each of the follow-
ing agencies: Commission on Aging, Commission on Alcohol
and Drug Abuse, Commission on the Blind, Children's Foster
Care Review Board, Department of Education, Department of
Health and Environmental Control, State Health and Human
Services Finance Commission, Department of Youth Services,
Department of Veterans' Affairs, John De La Howe School, De-
partment of Mental Health, Department of Mental Retardation,
School for Deaf and Blind, Department of Social Services,
Department of Vocational Rehabilitation, Guardian ad Litem
Program, Continuum of Care for Emotionally Disturbed Chil-
dren, Educational Television, and Wil Lou Gray Opportunity
School.
(3) The Governor or his designee.
(4) Other such members as the Council shall deem appro-
priate.
The Council shall:
(1) Select a board chairperson on an annual basis to
serve as the Council chairperson; select a chief executive
officer on an annual basis to serve as the Council vice-
chairperson.
(2) Meet regularly to provide an opportunity for collab-
oration and cooperation among member agencies.
The Council shall have as its goals:
(1) Identify and address priority health and human needs
and promote the availability of responsive resources.
(2) Promote cost-effective, efficient approaches for the
delivery of health and human services which include pre-
vention, education, reduction of dependency, promotion of
self-sufficiency and delivery of services in the least re-
strictive, most appropriate community-based and institu-
tional settings.
(3) Provide coordination between the council members and
the State Health and Human Services Finance Commission in
the development of the comprehensive State Health and Human
Services Plan.
(4) In cooperation with the State Health and Human Ser-
vices Finance Commission, coordinate and oversee efforts to
integrate services information among state agencies and be-
tween state and local agencies.
(5) Review and monitor service integration efforts begun
by the Human Services Integration Projects, including:
(a) Developing standards for case management activities
and coordinating with local entities on service integration
efforts, and
(b) Receiving requests for funding of projects designed
to further integration of services, including review and ap-
proval of such projects.
(6) The State Health and Human Services Finance Commission
is to conduct a study of persons who have suffered head and
spinal cord injuries. The objective of this study will be
to produce a plan to identify those services necessary to
support such persons and to increase their level of self-
sufficiency.
The study will be coordinated and in cooperation with the
Human Services Coordinating Council. The Commission shall
report its findings to the General Assembly no later than
January 15, 1990.
129.49. The State House Committee in consultation with
the Division of General Services of the State Budget and
Control Board shall conduct a study to determine the feasi-
bility and expense of providing alternate emergency exits
from the House and Senate Chambers. The State House Commit-
tee shall report the results of the study to the Speaker of
the House and the President of the Senate no later than Jan-
uary 31, 1990. Expenses of the study must be paid from the
approved accounts of both houses.
129.50. Each agency of state government shall include in
their annual report to the General Assembly a listing of
agency programs in order of priority importance to the
mission of the agency. The reports shall further contain
efficiency and effectiveness measures regarding the perform-
ance of each agency program, including measures which com-
pare actual performance for the fiscal year being reported
to the actual performance of the previous fiscal year. The
Budget and Control Board shall develop uniform criteria for
the efficiency and effectiveness measures to be included in
the report.
130.1. Unless specifically authorized herein, the appro-
priations provided in Part I of this Act as ordinary ex-
penses of the State Government shall lapse on July 31, 1990.
State agencies are required to submit all Fiscal Year
1989-90 input documents to the Comptroller General's Office
by July 20, 1990. Appropriations for Permanent Improve-
ments, or for other specific purposes aside from ordinary
operating expenses, now outstanding or hereafter provided,
shall lapse at the end of the second fiscal year in which
such appropriations were provided, unless definite commit-
ments shall have been made, with the approval of the State
Budget and Control Board and Joint Bond Review Committee,
toward the accomplishment of the purposes for which the ap-
propriations were provided.
End of Part I
PART II
PERMANENT PROVISIONS
SECTION 1
The Code Commissioner is directed to include all permanent general
laws in this Part in the next edition of the Code of Laws of South
Carolina, 1976, and all supplements to the Code.
SECTION 2
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING
SECTION 8-11-165 SO AS TO PROVIDE THAT IT IS THE INTENT OF THE
GENERAL ASSEMBLY THAT A SALARY AND FRINGE BENEFIT SURVEY FOR
AGENCY
HEADS IS CONDUCTED EVERY THREE YEARS; TO PROVIDE THAT NO EMPLOYEE
OF AGENCIES REVIEWED BY THE AGENCY HEAD SALARY COMMISSION MAY
RECEIVE IN EXCESS OF NINETY-FIVE PERCENT OF THE MIDPOINT OF THE
AGENCY HEAD SALARY RANGE OR THE AGENCY HEAD ACTUAL SALARY,
WHICHEVER IS GREATER; TO PROVIDE THAT AGENCY HEAD SALARIES MAY BE
ADJUSTED TO THE MINIMUM OF THEIR SALARY RANGES AND MAY BE ADJUSTED
UP TO THE MIDPOINTS OF THEIR RESPECTIVE SALARY RANGES BASED ON
CRITERIA DEVELOPED AND APPROVED BY THE COMMISSION; AND TO PROVIDE
THAT ALL NEW MEMBERS OF GOVERNING BOARDS WHERE THE PERFORMANCE
OF
THE AGENCY HEAD IS REVIEWED BY THE COMMISSION SHALL ATTEND
PERFORMANCE APPRAISAL TRAINING WITHIN THE FIRST YEAR OF THEIR
APPOINTMENT.
Article 1, Chapter 11, Title 8 of the 1976 Code is amended by
adding:
"Section 8-11-165. It is the intent of the General Assembly
that a salary and fringe benefit survey for agency heads must be
conducted by the Human Resource Management Division of the Budget
and Control Board every three years. The staff of the division
shall serve as the support staff to the Agency Head Salary
Commission.
No employee of agencies reviewed by the Agency Head Salary
Commission may receive a salary in excess of ninety-five percent of
the midpoint of the agency head salary range or the agency head
actual salary, whichever is greater, except on approval of the
Budget and Control Board.
The Agency Head Salary Commission may recommend to the Budget and
Control Board that agency head salaries be adjusted to the minimum
of their salary ranges and may recommend to the Board that agency
head salaries be adjusted when necessary up to the midpoints of
their respective salary ranges. These increases must be based on
criteria developed and approved by the Agency Head Salary
Commission.
All new members appointed to a governing board of an agency where
the performance of the agency head is reviewed and ranked by the
Agency Head Salary Commission shall attend the training in agency
head performance appraisal provided by the Commission within the
first year of their appointment unless specifically excused by the
chairman of the Agency Head Salary Commission."
SECTION 3
TO AMEND SECTION 12-7-210, AS AMENDED, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO STATE INCOME TAX RATES OF INDIVIDUALS,
ESTATES, AND TRUSTS, SO AS TO ESTABLISH A RATE EQUAL TO TWO AND
SEVENTY-FIVE HUNDREDTHS PERCENT ON THE FIRST TWO THOUSAND DOLLARS
OF SOUTH CAROLINA TAXABLE INCOME BEGINNING IN THE 1990 TAXABLE YEAR
AND TO ESTABLISH A RATE EQUAL TO TWO AND ONE-HALF PERCENT IN THE
SAME BRACKET FOR TAXABLE YEARS BEGINNING AFTER 1990, TO ACCELERATE
THE EFFECTIVE DATE OF THESE BRACKETS BY ONE TAXABLE YEAR IF THERE
IS AVAILABLE FIVE AND ONE-HALF MILLION DOLLARS OF UNOBLIGATED
1988-89 FISCAL YEAR SURPLUS REVENUES AS CERTIFIED BY THE
COMPTROLLER GENERAL, AND TO PROVIDE FOR THE CUMULATIVE ADJUSTING
OF
THE INCOME TAX BRACKETS PROVIDED IN THIS ACT.
A. If there is available the full amount of the general fund
reduction offset made pursuant to Part IV of this act for income
tax rate reduction, the income tax rates as amended in subsection
B of this section take effect. If there is not available the full
amount, the income tax rates as amended in subsection B of this
section do not take effect and the income tax rates as amended in
subsection C of this section take effect. The Comptroller General
shall certify no later than August 15, 1989, to the State Budget
and Control Board, the South Carolina Tax Commission, and the Code
Commissioner as to the availability of the full amount of the
general fund reduction offset. The Code Commissioner shall cause
the appropriate amendment to Section 12-7-210 of the 1976 Code to
be printed in the 1989 supplement to the 1976 Code.
B. Section 12-7-210 of the 1976 Code, as amended by Section 25B,
Part II of Act 170 of 1987, is further amended to read:
"Section 12-7-210. (A) For taxable years beginning before
1989, a tax is imposed on the South Carolina taxable income of
individuals, estates, and trusts computed at the following rates:
Not over $4,000 3 percent of
taxable income
over $4,000 but $120 plus 4 percent
not over $6,000 of the excess over
$4,000
over $6,000 but $200 plus 5 percent of
not over $8,000 the excess over $6,000
over $8,000 but $300 plus 6 percent of
not over $10,000 the excess over $8,000
over $10,000 $420 plus 7 percent of
the excess over $10,000.
The commission may prescribe tax tables consistent with the rates
set pursuant to this subsection for taxpayers with taxable incomes
of less than fifty thousand dollars.
(B) For a taxable year beginning in 1989, a tax is imposed on the
South Carolina taxable income of individuals, estates, and trusts
computed at the following rates:
Not over $2,000 2.75 percent of
taxable income
over $2,000 but $55 plus 3 percent of
not over $4,000 the excess over $2,000
over $4,000 but $115 plus 4 percent of
not over $6,000 the excess over $4,000
over $6,000 but $195 plus 5 percent of
not over $8,000 the excess over $6,000
over $8,000 but $295 plus 6 percent of
not over $10,000 the excess over $8,000
over $10,000 $415 plus 7 percent of
the excess over $10,000.
The commission may prescribe tax tables consistent with the rates
set pursuant to this subsection for taxpayers with taxable incomes
of less than fifty thousand dollars.
(C) For taxable years beginning after 1989, a tax is imposed on
the South Carolina taxable income of individuals, estates, and
trusts computed at the following rates:
Not over $2,000 2.5 percent of taxable
income
over $2,000 but $50 plus 3 percent of
not over $4,000 the excess over $2,000
over $4,000 but $110 plus 4 percent of
not over $6,000 the excess over $4,000
over $6,000 but $190 plus 5 percent of
not over $8,000 the excess over $6,000
over $8,000 but $290 plus 6 percent of
not over $10,000 the excess over $8,000
over $10,000 $410 plus 7 percent of
the excess over $10,000.
The commission may prescribe tax tables consistent with the rates
set pursuant to this subsection for taxpayers with taxable incomes
of less than fifty thousand dollars."
C. Section 12-7-210 of the 1976 Code, as amended by Section 25B,
Part II of Act 170 of 1987, is further amended to read:
"Section 12-7-210. (A) For taxable years beginning before
1990, a tax is imposed on the South Carolina taxable income of
individuals, estates, and trusts computed at the following rates:
Not over $4,000 3 percent of
taxable income
over $4,000 but $120 plus 4 percent of
not over $6,000 the excess over $4,000
over $6,000 but $200 plus 5 percent of
not over $8,000 the excess over $6,000
over $8,000 but $300 plus 6 percent of
not over $10,000 the excess over $8,000
over $10,000 $420 plus 7 percent of
the excess over $10,000.
The commission may prescribe tax tables consistent with the rates
set pursuant to this subsection for taxpayers with taxable incomes
of less than fifty thousand dollars.
(B) For a taxable year beginning in 1990, a tax is imposed on the
South Carolina taxable income of individuals, estates, and trusts
computed at the following rates:
Not over $2,000 2.75 percent of
taxable income
over $2,000 but $55 plus 3 percent of
not over $4,000 the excess over $2,000
over $4,000 but $115 plus 4 percent of
not over $6,000 the excess over $4,000
over $6,000 but $195 plus 5 percent of
not over $8,000 the excess over $6,000
over $8,000 but $295 plus 6 percent of
not over $10,000 the excess over $8,000
over $10,000 $415 plus 7 percent of
the excess over $10,000.
The commission may prescribe tax tables consistent with the rates
set pursuant to this subsection for taxpayers with taxable incomes
of less than fifty thousand dollars.
(C) For taxable years beginning after 1990, a tax is imposed on
the South Carolina taxable income of individuals, estates, and
trusts computed at the following rates:
Not over $2,000 2.5 percent of
taxable income
over $2,000 but $50 plus 3 percent of
not over $4,000 the excess over $2,000
over $4,000 but $110 plus 4 percent of
not over $6,000 the excess over $4,000
over $6,000 but $190 plus 5 percent of
not over $8,000 the excess over $6,000
over $8,000 but $290 plus 6 percent of
not over $10,000 the excess over $8,000
over $10,000 $410 plus 7 percent of
the excess over $10,000.
The commission may prescribe tax tables consistent with the rates
set pursuant to this subsection for taxpayers with taxable incomes
of less than fifty thousand dollars."
D. Inflation adjustments required by law to state income tax
brackets must be made cumulatively to the income tax brackets
provided in this section from the first taxable year in which these
brackets take effect.
SECTION 4
TO AMEND THE 1976 CODE BY ADDING SECTION 12-7-215, SO AS TO ADJUST
ANNUALLY INDIVIDUAL STATE INCOME TAX BRACKETS TO OFFSET ONE-HALF OF
THE EFFECTS OF INFLATION AND TO LIMIT THE ADJUSTMENT TO ONE-HALF OF
ONE PERCENT IN THE 1989 TAXABLE YEAR, ONE PERCENT IN THE 1990
TAXABLE YEAR, TWO PERCENT IN THE 1991 TAXABLE YEAR, AND FOUR
PERCENT IN TAXABLE YEARS BEGINNING AFTER 1991.
Article 3, Chapter 7, Title 12 of the 1976 Code is amended by
adding:
"Section 12-7-215. (A) On December 15, 1989, and on each
succeeding year on that date, the commission shall cumulatively
adjust the brackets in Section 12-7-210 in the same manner that
brackets are adjusted as provided in Internal Revenue Code Section
(1)(f) but the adjustment is limited to one-half of the adjustment
as determined by that section and in no case may exceed four
percent. The brackets, as adjusted, apply in lieu of those
provided in Section 12-7-210 for taxable years beginning in the
succeeding calendar year.
(B) Notwithstanding the method of adjustment provided in this
section, the adjustment for brackets for taxable years beginning in
1990 may not exceed one percent and the adjustment for brackets for
taxable years beginning in 1991 may not exceed two percent.
(C) No later than September 15, 1989, the commission shall adjust
the brackets in Section 12-7-210 in the same manner provided in
this section but the total adjustment is limited to one-half of one
percent. The brackets, as adjusted, apply in lieu of those
provided in Section 12-7-210 for taxable years beginning in
1989."
SECTION 5
TO AMEND SECTION 7-13-1810 OF THE 1976 CODE, RELATING TO THE
MECHANICAL MODEL OF A PORTION OF THE FACE OF A VOTING MACHINE
REQUIRED AT THE POLLS ON ELECTION DAY FOR THE INSTRUCTION OF
VOTERS, SO AS TO ALLOW A PAPER FACSIMILE OF THE FACE OF THE VOTING
MACHINE TO BE SUBSTITUTED FOR THE MODEL.
Section 7-13-1810 of the 1976 Code is amended to read:
"Section 7-13-1810. For the instruction of voters on
election day, there must be provided for each polling place a
mechanically operated model or a paper facsimile of a portion of
the face of the machine. The model or facsimile must be located on
the table of one of the managers or in some other place accessible
to the voters. Each voter so desiring, before entering the
machine, must be instructed regarding its operation and the
instruction illustrated on the model or paper facsimile and the
voter given an opportunity personally to operate the model. The
voter's attention may also be called to the diagram of the face of
the machine so that the voter may become familiar with the location
of the questions and the names of the offices and candidates."
SECTION 6
TO AMEND THE 1976 CODE BY ADDING SECTION 12-27-1285 SO AS TO
PROVIDE THAT ONLY THE STATUTORILY ENUMERATED SOCIOECONOMIC
FACTORS
MAY BE USED IN DETERMINING PROJECT PRIORITIES UNDER THE STRATEGIC
HIGHWAY PLAN FOR IMPROVING MOBILITY AND SAFETY, TO REQUIRE THE
STATUTORILY ENUMERATED FACTORS TO BE GIVEN EQUAL WEIGHT IN
ESTABLISHING PRIORITIES, TO PROHIBIT THE MERGING OF THE
SOCIOECONOMIC AND TRANSPORTATION FACTOR PRIORITY LISTS, AND TO
REQUIRE THE SELECT OVERSIGHT COMMITTEE TO INCLUDE IN ITS ANNUAL
REPORT TO THE GENERAL ASSEMBLY THE SEPARATELY UPDATED
SOCIOECONOMIC
AND TRANSPORTATION FACTOR PRIORITY LISTS.
Article 13, Chapter 27, Title 12 of the 1976 Code is amended by
adding:
"Section 12-27-1285. In establishing priorities for the
socioeconomic list pursuant to Section 12-27-1280, the department
shall consider only those socioeconomic factors enumerated in
Section 12-27-1280. Each enumerated factor must be given equal
weight and the factors must not be merged to form a single list.
In its annual report to the General Assembly, the Select Oversight
Committee shall include updated lists of the socioeconomic factor
selected projects and transportation factor selected
projects."
SECTION 7
TO AMEND THE 1976 CODE BY ADDING SECTION 59-29-183 SO AS TO REQUIRE
THE DEPARTMENT OF EDUCATION TO DEVELOP OR SELECT IN-SERVICE
TRAINING PROGRAMS FOR TEACHERS AND STAFF IN TEACHING HIGHER ORDER
THINKING AND PROBLEM-SOLVING.
The 1976 Code is amended by adding:
"Section 59-29-183. The State Department of Education shall
develop or select in-service training programs for teachers and
staff in teaching higher order thinking and problem-solving as part
of the existing curriculum. Upon funding for district
implementation of the program by the General Assembly, the State
Department of Education shall ensure that each school district
implements teacher in-service training in higher order thinking and
problem solving on a schedule to train all teachers and staff
within five years."
SECTION 8
TO AMEND THE 1976 CODE BY ADDING SECTION 59-18-22 SO AS TO REQUIRE
THE COMMISSION ON HIGHER EDUCATION, IN CONSULTATION WITH THE STATE
BOARD OF EDUCATION AND THE SELECT COMMITTEE TO ESTABLISH A CENTER
FOR THE ADVANCEMENT OF TEACHING AND SCHOOL LEADERSHIP, TO PROVIDE
FOR THE CENTER'S PURPOSE AND RESPONSIBILITIES.
The 1976 Code is amended by adding:
"Section 59-18-22. The Commission on Higher Education, in
consultation with the State Board of Education, and the Select
Committee shall establish a center for the Advancement of Teaching
and School Leadership at a selected public college or university.
The center shall
provide a program for school change consisting of intensive
short-term institutes for teams of teachers and administrators who
are committed to creating innovative programs in their schools.
The program must be provided through the center working in
conjunction with other colleges and universities in various regions
of the State. School teams shall work with center staff and
consultants to analyze the needs of the team's school and consider
strategies to bring about meaningful change from within the school.
School teams shall set goals and analyze their roles and
responsibilities in the change process. An evaluation component
must be developed for each school with input from the school team,
center staff, and consultants in school effectiveness and change.
After school teams return to their schools, the center shall
provide on-site support and expertise when appropriate."
SECTION 9
TO AMEND SECTION 1-1-1210 OF THE 1976 CODE, RELATING TO THE
SALARIES OF THE GOVERNOR, LIEUTENANT GOVERNOR, AND OTHER STATEWIDE
ELECTED CONSTITUTIONAL OFFICERS, SO AS TO INCREASE THEIR SALARIES
EFFECTIVE WHEN THEY ASSUME OFFICE IN 1991 AND TO PROHIBIT STATEWIDE
ELECTED CONSTITUTIONAL OFFICERS FROM RECEIVING COMPENSATION FOR EX
OFFICIO SERVICE ON STATE BOARDS, COMMITTEES, AND COMMISSIONS.
A. Section 1-1-1210 of the 1976 Code is amended to read:
"Section 1-1-1210. The annual salaries of the state officers
listed below are:
Governor $98,000
Lieutenant Governor 43,000
Secretary of State 85,000
State Treasurer 85,000
Attorney General 85,000
Comptroller General 85,000
Superintendent of Education 85,000
Adjutant General 85,000
Commissioner of Agriculture 85,000
These salaries must be increased by two percent on July 1, 1991,
and on July first of each succeeding year through July 1, 1994.
A state officer whose salary is provided in this section may not
receive compensation for ex officio service on any state board,
committee, or commission."
B. This amendment to Section 1-1-1210 is effective when the state
officers listed in the section assume office in 1991.
SECTION 10
TO AMEND THE 1976 CODE BY ADDING SECTION 59-1-451 SO AS TO REQUIRE
THE STATE DEPARTMENT OF EDUCATION TO REVIEW AND ADOPT PROGRAMS
WHICH PROVIDE EDUCATION AND TRAINING TO PARENTS OF PRESCHOOL
CHILDREN.
The 1976 Code is amended by adding:
"Section 59-1-451. (A) The State Department of Education
shall review programs which are effective in providing parents
support in their role as the principal teachers of their preschool
children. The purpose of the review is for the State Board of
Education to select or adapt a program, after piloting and
consultation with the Select Committee, for implementation in South
Carolina. The selected or adapted programs which are pilot-tested
must provide parent education to parents and guardians of children
from birth through age five and must include intensive and special
efforts to recruit parents or guardians whose children are at risk
for school failure. The program also should include developmental
screening for children and offer parents and guardians of children
from birth through age five opportunities to improve their
education if they do not possess a high school diploma or
equivalent certificate.
(B) An interim report on the evaluation of the programs
pilot-tested must be provided to the Select Committee and
Business-Education Subcommittee by March 1, 1990."
SECTION 11
TO AMEND THE 1976 CODE BY ADDING SECTION 59-65-100 SO AS TO PROVIDE
FOR THE DEVELOPMENT, PILOT-TESTING, AND FUNDING OF PROGRAMS
DESIGNED TO REDUCE AND RECOVER DROPOUTS.
The 1976 Code is amended by adding:
"Section 59-65-100. (A) The State Board of Education, in
consultation with the Select Committee, shall cause programs
designed to reduce and recover dropouts to be developed and
pilot-tested in no more than eight school districts and in no more
than ten elementary, ten middle, and ten high schools in school
year 1989-90. In selecting the pilot programs, the latest research
on the effectiveness of various strategies to reduce and retrieve
dropouts must be considered. Implementation of dropout prevention
and retrieval programs must be phased-in in all school districts
over six years in substantially equal annual increments.
(B) The General Assembly shall appropriate funds in Fiscal Year
1989-90 for planning, program development, and pilot testing
components for a dropout prevention and retrieval program in no
more than eight school districts and thirty schools which are
designated by the State Board of Education after consultation with
the Select Committee. A school or school district which is pilot
testing a dropout and retrieval program, individually or with other
participants may use a portion of its program funds for the
purchase of technical assistance. The pilot-tested programs must
emphasize programs for students below grade nine. An interim
report on the evaluation of the programs must be provided to the
Select Committee and the Business-Education Subcommittee by March
1, 1990.
(C) By the beginning of the 1992-93 school year, the State Board
of Education, in consultation with the Select Committee, shall
promulgate regulations requiring each school district receiving
state funds under this section to develop or implement written
plans detailing a comprehensive dropout prevention and retrieval
program using program components found to be effective during pilot
testing.
(D) The State Board of Education shall approve district plans
which meet the criteria established by regulation and shall waive
those regulations as requested by the schools and district when
waiver of the regulations bears a rational relationship to the
success of the proposed program.
(E) In Fiscal Year 1994-95, the General Assembly shall
appropriate sufficient funds for the statewide operation of dropout
prevention and retrieval programs. Funds must be allocated to the
school districts on the basis of a formula that incorporates a base
allocation in addition to each district's total weighted pupil
units and its average attrition rate in grades nine through twelve
over the most recent five years. Funds appropriated under this
section may be carried forward from one fiscal year to another for
the purpose of funding special summer programs."
SECTION 12
TO AMEND THE 1976 CODE BY ADDING SECTION 59-29-220 SO AS TO PROVIDE
A DISCIPLINE-BASED ARTS EDUCATION CURRICULUM FOR SCHOOLS OF THE
STATE.
The 1976 Code is amended by adding:
"Section 59-29-220. The State Board of Education, in
conjunction with the South Carolina Arts Commission, shall plan and
develop discipline-based arts education curricula in the visual
arts, music, dance, and drama which complies with the State
Department of Education discipline-based arts education curriculum
framework. The State Board of Education shall cause the arts
education curricula to be pilot tested in selected school districts
and shall provide teacher in-service training programs for arts
specialists and classroom teachers."
SECTION 13
TO AMEND THE 1976 CODE BY ADDING SECTION 59-18-15 SO AS TO PROVIDE
A PROCESS WHEREBY SCHOOLS CAN BE GIVEN THE FLEXIBILITY OF RECEIVING
EXEMPTION FROM CERTAIN STATE REGULATIONS; AND TO AMEND SECTION
59-18-20, RELATING TO COMPETITIVE GRANTS, SO AS TO ESTABLISH A
COMPETITIVE SCHOOLWIDE INNOVATION GRANTS PROGRAM.
A. The 1976 Code is amended by adding:
"Section 59-18-15. A school is given the flexibility of
receiving exemptions from those regulations and statutory
provisions governing the Defined Minimum Program, the Basic Skills
Assessment Program, and the Remedial/Compensatory Program if,
during a three-year period, the following criteria are satisfied:
(1) the school has twice been a recipient of a school incentive
grant pursuant to Section 59-18-10;
(2) the school has met annual NCE gain requirements for reading
and mathematics compensatory programs pursuant to Section 59-5-65;
(3) the school has exhibited no recurring accreditation
deficiencies; and
(4) the school has annually exhibited a school gain index value
at or above the state average as computed in the school incentive
grant program pursuant to Section 59-18-10.
Schools receiving flexibility status are released from those
regulations and statutory provisions referred to above including,
but not limited to, regulations and statutory provisions on class
scheduling, class structure, and staffing. The State Board of
Education in consultation with the Select Committee and the
Business-Education Subcommittee must promulgate regulations and
develop guidelines for providing this flexibility by December 1,
1989.
To continue to receive flexibility pursuant to this section, a
school must annually exhibit a school gain index value at or above
the state average as computed in the school incentive award program
pursuant to Section 59-18-10 and must meet the NCE gains required
for reading and mathematics compensatory education program pursuant
to Section 59-5-65. A school which does not requalify for
flexibility status due to extenuating circumstances may apply to
the State Board of Education for an extension of this status for
one year.
If a school is removed from flexibility status, the school is not
subject to regulations and statutory provisions exempted under this
section until the beginning of the school year following
notification of the change in status by the State Department of
Education. Subsequent monitoring by the State Department of
Education in a school that is removed from flexibility status does
not include a review of program records exempted under this section
for the period that the school has received flexibility status or
for the school year during which the school was notified of its
removal from flexibility status."
B. Section 59-18-20 of the 1976 Code is amended to read:
"Section 59-18-20. (A) The State Board of Education, acting
through the State Department of Education, shall establish a
competitive grant program whereby schools may be awarded grants to
implement exemplary and innovative programs designed to improve
instruction. These programs may include more effective utilization
of substitute teachers at the individual school level.
(B) To encourage public schools to implement innovative and
comprehensive approaches for improving student development,
performance, and attendance, a competitive schoolwide innovation
grants program is also established. Funds for the competitive
schoolwide innovation grants program are as provided by the General
Assembly in the annual general appropriations act. The State
Board of Education, acting through the State Department of
Education, must provide by regulation for this competitive grants
program. All schools are eligible to apply for these grants.
A committee composed of members of the Business-Education
Partnership for Excellence in Education and appointed by the
chairman of the Business-Education Partnership shall recommend to
the State Board of Education the criteria and guidelines to be used
in evaluating each grant application. The criteria must include,
but not be limited to, the involvement of teachers, parents,
students, businesses, and school improvement councils in the
development, application, and implementation of the grant proposal.
Grant proposals which involve the greatest percentage of students
and staff must receive priority consideration for funding. The
State Department of Education and at least two members of the
Business-Education Partnership, appointed by the chairman of the
Partnership and representing the business community, must review
all grant applications and must recommend to the State Board of
Education grant recipients.
Each grant award for planning purposes cannot exceed five thousand
dollars per school. Each grant award for program implementation
cannot exceed ninety thousand dollars over a three-year period.
Grant awards may include funds for the purchase of technical
assistance.
To qualify for an additional grant award beyond the initial three
years, a school must exhibit a school gain index value at or above
the state average as computed in the school incentive grant program
pursuant to Section 59-18-10 at least once during the initial
three-year grant period.
The State Board of Education must give special consideration for
waivers of regulations and reporting requirements to those schools
receiving grant awards as provided in this section.
An unexpended balance of an appropriation for these schoolwide
innovation grants on June thirtieth of a fiscal year must be
carried forward and expended for the same purpose during the next
fiscal year."
SECTION 14
TO AMEND THE 1976 CODE BY ADDING SECTION 2-1-185, SO AS TO PROVIDE
FOR ANNUAL INCREASES IN THE COMPENSATION OF MEMBERS OF THE GENERAL
ASSEMBLY BEGINNING WITH THE 1991 SESSION OF THE GENERAL ASSEMBLY
AND TO PROVIDE THAT THE INCREASE MUST BE THE SAME PERCENTAGE OF THE
COST OF LIVING ADJUSTMENT FOR STATE EMPLOYEES' SALARIES IN THE LAST
COMPLETED FISCAL YEAR BEFORE THE APPLICABLE SESSION.
Chapter 1, Title 2 of the 1976 Code is amended by adding:
"Section 2-1-185. Beginning with compensation paid to
members of the General Assembly for the 1991 session, the
compensation of members of the General Assembly must be increased
annually by the same total percentage of cost of living adjustments
provided for state employees' salaries in the last completed fiscal
year before the applicable session of the General Assembly."
SECTION 15
TO AMEND THE 1976 CODE BY ADDING SECTION 59-1-452 SO AS TO
ESTABLISH THE PUBLIC SCHOOL EMPLOYEE COST SAVINGS PROGRAM.
The 1976 Code is amended by adding:
"Section 59-1-452. The Public School Employee Cost Savings
Program is established for the purpose of making cash awards to
individual school district employees for cost saving ideas which
are proven to be workable and do not reduce educational
effectiveness. The program must be administered by the State
Department of Education with the advice and assistance of a special
committee to screen suggested ideas and recommend those with
potential merit to be implemented and evaluated. The committee
must be composed of:
(1) one member who is serving or has served on a public school
board to be appointed by the State Board of Education upon the
recommendation of the South Carolina School Boards Association;
(2) one member who is serving or has served as a public school
superintendent, or district financial administrator, to be
appointed by the State Board of Education upon the recommendation
of the South Carolina Association of School Administrators;
(3) one member who is serving or who has served as a public
school principal, vocational center director, or school
administrator, appointed by the State Board of Education;
(4) one public school teacher or retired teacher with a minimum
of fifteen years' service, appointed by the State Board of
Education upon the recommendation of the South Carolina Education
Association;
(5) one public school teacher or retired teacher with a minimum
of fifteen years' service, appointed by the State Board of
Education upon the recommendation of the Palmetto State Teachers
Association;
(6) two members appointed by the State Superintendent of
Education; and
(7) five private sector business persons, who hold no public
office, one appointed by the Governor, one appointed by the
Chairman of the Senate Finance Committee, one appointed by the
Chairman of the House Ways and Means Committee, one appointed by
the Chairman of the House Education and Public Works Committee, and
one appointed by the Chairman of the Senate Education Committee.
Committee members shall serve three-year terms, except that of
those initially appointed, four shall serve initial terms of one
year, four shall serve initial terms of two years, and four shall
serve initial terms of three years. These initial terms must be
determined by lot at the first meeting of the committee. Committee
members must attend at least eighty percent of the meetings of the
committee in each fiscal year or be replaced. Vacancies must be
filled in the manner of original selection for the remainder of the
unexpired term.
The State Board shall promulgate regulations and establish
procedures to administer the program. The regulations shall limit
individual cash awards to twenty-five percent of the cost savings
for one fiscal year or five thousand dollars, whichever is less.
No employee may receive an award for an idea which could have been
implemented by the employee through his normal job duties.
Employees of the State Department of Education may participate in
the program.
The State Department of Education shall provide administrative
support for the program. The State Board of Education shall waive
or modify its regulations when appropriate and necessary to achieve
cost savings."
SECTION 16
TO AMEND SECTION 12-27-390 OF THE 1976 CODE, RELATING TO THE
DISTRIBUTION OF ONE-HALF OF ONE PERCENT OF THE GASOLINE TAX
REVENUES TO THE CREDIT OF THE WATER RECREATIONAL RESOURCES FUND OF
THE STATE TREASURY, SO AS TO PROVIDE THAT DISTRIBUTIONS TO COUNTIES
FROM THE FUND MAY BE USED FOR CAPITAL IMPROVEMENTS FOR
RECREATIONAL
PURPOSES.
The first paragraph of Section 12-27-390 of the 1976 Code is
amended to read:
"One-half of one percent of the proceeds from the gasoline
tax imposed pursuant to Section 12-27-230 must be transmitted to
the Department of Wildlife and Marine Resources to be placed to the
credit of a special water recreational resources fund of the state
treasury and all balances in the fund must be carried forward each
year so that no part of the fund reverts to the general fund of the
State. Fund proceeds must be distributed to the counties based
upon the number of boats or other watercraft registered in each
county pursuant to law and expended, subject to the approval of a
majority of the county legislative delegation, including a majority
of the resident senators, if any, for the purpose of water
recreational resources and capital improvements for recreational
purposes. The amounts distributed to the counties must be deducted
from the gross proceeds of the gasoline tax imposed under Section
12-27-230 before net proceeds to be distributed to the Department
of Highways and Public Transportation and counties pursuant to
Section 12-27-380 are determined. This section does not reduce the
one cent a gallon license tax now being distributed to the counties
pursuant to Section 12-27-380."
SECTION 17
TO AMEND SECTION 59-20-20, AS AMENDED, OF THE 1976 CODE, RELATING
TO THE DEFINITIONS FOR PURPOSES OF THE EDUCATION FINANCE ACT, SO AS
TO PROVIDE UNDER THE "INDEX OF TAXPAYING ABILITY" THAT
THE TAXABLE YEAR ON WHICH THE INDEX IS BASED IS THE SECOND
COMPLETED TAXABLE YEAR PRECEDING THE YEAR THE INDEX IS USED, TO
REQUIRE THE TAX COMMISSION TO PROVIDE THE INDEX WITH ALL CHANGES
AND CORRECTIONS NOT LATER THAN MARCH FIRST OF EACH YEAR, AND TO
PROVIDE THE MANNER IN WHICH ADJUSTMENTS MUST BE MADE IN
CALCULATING
THE INDEX.
A. Section 59-20-20(3) of the 1976 Code, as amended by Act 655 of
1988, is further amended to read:
"(3) 'Index of taxpaying ability' means an index of a local
district's relative fiscal capacity in relation to that of all
other districts of the State based on the full market value of all
taxable property of the district assessed on the basis of property
classification assessment ratios set forth in Article 3, Chapter 43
of Title 12 for the second completed taxable year preceding the
fiscal year in which the index is used. The county auditor shall
provide to the Tax Commission the assessed value of property in
each of the school districts of the county not later than February
first of each year. The index must be used to calculate each
district's share of the revenue to be raised locally for the
foundation program. The index must include an imputed value for
the property tax base implicitly generating impact aid revenue.
The property tax base must be imputed at two-thirds the average
ratio of all true value assessed property value statewide to prior
year local revenue statewide in the foundation program, the
resulting product multiplied times the average impact aid receipts
during the prior three years. If impact aid receipts during the
federal fiscal year are less than the average receipts for the
prior three years, then state aid to the impact aid districts must
be adjusted in the final payment for the state fiscal year. If the
State Department of Education determines from fiscal simulations
that the school finance system does not meet requirements of
Section 5(D) of P. L. 81-874, the Tax Commission shall exclude an
imputed value of impact aid receipts from the index of taxpaying
ability.
The index must be determined annually by the Tax Commission on the
basis of the most current sales ratio data available based on
studies made pursuant to Section 12-43-250 for assessed property
within a school district. The sales ratio data utilized must be
based on annual ratio studies made within the previous two calendar
years. The Tax Commission shall provide the index not later than
March first to the State Department of Education and to the auditor
of each county who shall provide the index to any governmental
entity responsible for approving or levying of millages for school
purposes. Changes and corrections may be made to the index before
March first but no change is allowed after that date. When the
assessment of property is under appeal and the appeal extends
beyond the year in which the assessment made pursuant to Section
12-43-305 is applied, the Tax Commission shall adjust the index of
taxpaying ability in the year in which the appeal is resolved by
the amount of any difference between the assessments. Any school
district is entitled to a hearing before the Tax Commission to
review its designated index of taxpaying ability within thirty days
of filing a request for the hearing. The data gathered by the Tax
Commission for the purpose of determining an annual index must be
preserved as public records in the offices of the Tax Commission
for four years. The raw information gathered from the various
county officers reflecting the representative sales within the
school districts, the consideration, and the reported market value
or assessed value for each sale are a part of the public records so
preserved. The Tax Commission shall file a statement stating the
methodology employed in making the annual determination of the
index and refer to all sources of factual information used in
making the determination. All work sheets, computer printouts, and
the actual calculation must be included as the public records to be
preserved by the Tax Commission. In determining sales to
assessment ratio, the Tax Commission shall use only reported
consideration on sales for which deeds have been placed on public
record. Where sufficient sales data is not available, the Tax
Commission shall make appraisals in lieu of sales in order to
determine the index. The appraisals, including all working papers,
must be included as the public records to be preserved by the Tax
Commission. With respect to school districts within counties where
abstracts of duplicates reflecting the assessed value have been
filed pursuant to Section 12-39-290, the same having been adopted
by the auditors under Article 3, Chapter 43 of Title 12, the index
must be on the basis of the value of the property as stated in the
abstracts as adjusted by sales ratio studies up to full assessments
based on full fair market value."
B. The index of taxpaying ability based on the 1988 taxable year
must be used for Education Finance Act allocations for both the
1989-1990 and 1990-1991 fiscal years. The Tax Commission may
continue to adjust the index based on the 1988 taxable year until
March 1, 1990, and the index, as adjusted, shall apply in Fiscal
Year 1990-1991.
C. Subsection A of this section is effective beginning with
Education Finance Act allocations for Fiscal Year 1991-1992.
SECTION 18
TO AMEND SECTION 46-32-10 OF THE 1976 CODE, RELATING TO THE TOBACCO
ADVISORY COMMISSION, SO AS TO INCREASE THE NUMBER OF COMMISSION
MEMBERS FROM TWELVE TO FOURTEEN BY ADDING A TOBACCO FARMER
APPOINTED BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE
SENATE
AND THE PRESIDENT OF TOBACCO ASSOCIATES, INCORPORATED, WHO SHALL
SERVE EX OFFICIO.
Section 46-32-10 of the 1976 Code is amended to read:
"Section 46-32-10. There is created the South Carolina
Tobacco Advisory Commission consisting of fourteen members as
follows: the South Carolina Commissioner of Agriculture, or his
designee, who shall serve for a term of four years coterminous with
the term of the commissioner; the Dean of the Clemson University
Department of Agriculture, or his designee, who shall serve for a
term of two years; the President of South Carolina Tobacco
Associates, Incorporated, ex officio; a representative from the
South Carolina Farm Bureau appointed by the Governor with the
advice and consent of the Senate to serve for a term of two years;
a representative of the South Carolina Tobacco Warehouse
Association appointed by the Governor with the advice and consent
of the Senate to serve for a term of two years; a representative of
the Pee Dee Tobacco Warehouse Association appointed by the Governor
with the advice and consent of the Senate to serve for a term of
two years; a representative from the South Carolina Grange
appointed by the Governor with the advice and consent of the Senate
to serve for a term of two years; two members appointed from the
State at large by the Governor with the advice and consent of the
Senate to serve for a term of four years; a tobacco farmer
appointed by the Governor with the advice and consent of the Senate
for a term of four years; two members must be members of the state
Senate to be appointed by the Lieutenant Governor to serve for
terms of four years; and two members must be members of the House
of Representatives to be appointed by the Speaker to serve for
terms of two years."
SECTION 19
TO AMEND SECTION 56-3-3910 OF THE 1976 CODE, RELATING TO ISSUANCE
OF THE BIG APPLE AND SHAG COMMEMORATIVE LICENSE PLATES, SO AS TO
DELETE AUTHORIZATION OF THE BIG APPLE COMMEMORATIVE LICENSE PLATE.
Section 56-3-3910 of the 1976 Code is amended to read:
"Section 56-3-3910. The department may issue a special
commemorative motor vehicle license plate commemorating the
fiftieth anniversary of the introduction of the State Dance, the
Shag, in 1988. The annual fee for the commemorative license plate
is twenty-five dollars in addition to the regular motor vehicle
registration fee prescribed by Article 5 of this chapter. This
license plate must be of the same size and general design of
regular motor vehicle license plates. The plate must be issued or
revalidated annually for the year beginning December first and
ending November thirtieth. License number 'one' for the Shag
license plate is reserved for the president of the Columbia Shag
Club in Richland County."
SECTION 20
TO AMEND CHAPTER 3, TITLE 56, OF THE 1976 CODE, RELATING TO
REGISTRATION AND LICENSING OF MOTOR VEHICLES, BY ADDING SECTION
56-3-1275 SO AS TO PROVIDE THAT AT THE OPTION OF THE PERSON TO WHOM
A VEHICLE IS LEFT BY A DECEASED MEMBER OF HIS
IMMEDIATE FAMILY, THE LICENSE PLATE ON THAT VEHICLE MAY BE RETAINED
ON THE VEHICLE BY THE NEW OWNER AND TO PROVIDE FOR REGISTRATION OF
THE VEHICLE IN THE NEW OWNER'S NAME.
Chapter 3, Title 56 of the 1976 Code is amended by adding:
"Section 56-3-1275. Notwithstanding any other provisions
under this chapter, whenever the owner of a registered and licensed
vehicle dies and his ownership in the vehicle, by will or operation
of law, is bequeathed to a member of his immediate family, this
person has the option of retaining the license tag attached to that
vehicle. The person shall notify the department in writing within
thirty days of receipt of the vehicle, giving his name, address,
and the date of death of the former owner. In that case, the
license plate issued for the vehicle shall remain attached to the
vehicle, except that the registration card must be returned
concurrently to the department with an application for transfer to
and registration in the new owner's name.
The department, upon being furnished with sufficient proof that
the applicant is a member of the immediate family of the deceased
owner and is the new owner of the vehicle, shall record the
transfer and issue a new registration card to the new owner. A
charge of three dollars may be made by the department for every
transfer and registration in the new owner's name. For the purposes
of this section, 'immediate family' means parents, children,
sisters, brothers, grandparents, and grandchildren.
The property tax year for the vehicle remains the same as it was
the year before the former owner's death in the event of the
transfer of the license plate in the manner authorized by this
section."
SECTION 21
TO AMEND SECTION 12-35-550, AS AMENDED, OF THE 1976 CODE, RELATING
TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT FROM THE SALES TAX THE
GROSS PROCEEDS OF SALES AND PURCHASES FOR RESALE BY CERTAIN
NONPROFIT ORGANIZATIONS IF THE NET PROCEEDS ARE USED EXCLUSIVELY
FOR EXEMPT PURPOSES AND DO NOT INURE TO THE PROFIT OF ANY
INDIVIDUAL AND TO EXEMPT THE SAME NONPROFIT ORGANIZATIONS FROM THE
RETAIL LICENSE TAX.
A. Section 12-35-550 of the 1976 Code is amended by adding an
appropriately numbered item to read:
"( ) The gross proceeds of sales or purchases for resale by
organizations exempt under Section 12-37-220A(3) and (4) and B(5),
(6), (7), (8), (12), (16), (19), (22), and (24) if the net proceeds
are used exclusively for exempt purposes and no benefit inures to
any individual. An organization whose sales or purchases are
exempted by this item is also exempt from the retail license tax
provided in Article 3 of this Chapter."
B. This section takes effect July 1, 1989.
SECTION 22
TO AMEND SECTION 42-7-10 OF THE 1976 CODE, RELATING TO THE STATE
WORKERS' COMPENSATION FUND, SO AS TO DEFINE THE SOURCES OF ITS
REVENUES, INCLUDING THE CREDITING TO IT OF ALL OF ITS INVESTMENT
INCOME BEGINNING IN THE THIRD YEAR FOLLOWING A TWO-YEAR PHASE-IN
PERIOD; AND TO AMEND SECTION 42-7-75, RELATING TO PAYMENTS TO THE
STATE WORKERS' COMPENSATION FUND, SO AS TO LIMIT TRANSFERS TO THE
FUND FROM THE GENERAL FUND OF THE STATE BECAUSE OF INSUFFICIENT
FUNDS TO PAY OPERATING EXPENSES AND CLAIMS TO AN AMOUNT NOT IN
EXCESS OF THE TOTAL OF INVESTMENT INCOME THE FUND WOULD HAVE
EARNED
SINCE ITS INCEPTION IF ALL ITS INVESTMENT INCOME HAD BEEN CREDITED
TO IT.
A. Section 42-7-10 of the 1976 Code is amended to read:
"Section 42-7-10. (A) There is established as a separate
agency of state government a separate fund to be known as the State
Workers' Compensation Fund. This fund consists of annual premium
charges, recoveries from the Second Injury Fund, recoveries by
subrogation and, subject to subsection (B) of this section, of all
income or revenue derived from investing these funds. Receipts for
the credit of the fund and expenditures from the fund must be
handled in the manner provided by law governing all state funds.
(B) One-third of the investment income generated in Fiscal Year
1990-91 and two-thirds of the income generated in Fiscal Year
1991-92 must be credited to the State Fund in those years
respectively. Thereafter all such income must be credited to the
State Fund except that the State Treasurer may charge the State
Fund, and credit to the general fund, the customary investment
management fee."
B. (1) The purpose and effect of the amendment to Section 42-7-75
of the 1976 Code contained in item (2) of this subsection is to
continue the State's guarantee for that portion of any reserve
deficiency which is attributable to failure to credit investment
income to the State Fund Trust Account and also to provide that the
State Workers' Compensation Fund must operate solely on revenue
derived from operations, including investment income, in the
future.
(2) The last paragraph of Section 42-7-75 of the 1976 Code is
amended to read:
"If there are not sufficient funds in the State Workers'
Compensation Fund Trust Account to pay operating expenses and
claims as they arise, the State Treasurer shall, from the general
fund of the State, deposit in the account monthly sufficient funds
to pay expenses and claims required by law to be paid, but the
amount deposited may not exceed the amount of investment income
which the account would have earned from its inception if all such
earnings had been credited to the fund."
SECTION 23
TO AMEND THE 1976 CODE BY ADDING SECTION 1-11-430 SO AS TO PROVIDE
THAT THE BUDGET AND CONTROL BOARD SHALL GOVERN THE SUPPLY AND USE
OF TELECOMMUNICATION SYSTEMS FOR STATE GOVERNMENT.
The 1976 Code is amended by adding:
"Section 1-11-430. In post-divestiture circumstances, the
State, its boards, committees, commissions, councils, and agencies,
and other entities excluding counties, municipalities, and special
service and school districts must be treated as a single enterprise
for purposes of securing and utilizing local and long distance
telecommunications equipment and services.
The State Budget and Control Board shall secure all
telecommunications equipment and services for the state government
enterprise under terms it considers suitable and coordinate the
supply of the equipment and services for state government use. No
entity of state government may enter into an agreement or renew an
existing agreement for telecommunications services unless approved
by the board."
SECTION 24
TO AMEND SECTION 11-25-690 OF THE 1976 CODE, RELATING TO THE
REQUIREMENT THAT PUBLIC AGENCIES MAILING OUT NONDAILY PUBLICATIONS
ANNUALLY REMOVE FROM THEIR MAILING LISTS PERSONS FAILING TO SEND A
WRITTEN REQUEST TO CONTINUE RECEIVING THE PUBLICATION, SO AS TO
EXEMPT FROM THE REQUIREMENT A NONDAILY PUBLICATION MAILED NO MORE
THAN TWICE A YEAR TO PUBLIC OFFICIALS OR EMPLOYEES.
Section 11-25-690 of the 1976 Code, as added by Section 41, Part
II, Act 658 of 1988, is amended to read:
"Section 11-25-690. All state and local agencies sending out
by mail a nondaily publication shall insert at least annually a
notice prominently placed, in at least two consecutive issues,
which states that all recipients must be removed from the
publication's mailing list unless they request in writing, at least
ten days before a cutoff date specified in the notice, that the
recipient wishes to continue receiving the publication. If no
written request from a recipient is received by the cutoff date,
the publication must no longer be mailed to the recipient. This
section does not apply to a nondaily publication mailed no more
than twice a year to public officials and employees."
SECTION 25
TO AMEND SECTIONS 12-7-20, AS AMENDED, AND 12-16-20, AS AMENDED, OF
THE 1976 CODE, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE
INCOME TAX AND THE SOUTH CAROLINA ESTATE TAX ACT, SO AS TO UPDATE
THE REFERENCE DATE OF THIS STATE'S ADOPTION OF VARIOUS PROVISIONS
OF THE INTERNAL REVENUE CODE OF 1986.
A. Section 12-7-20(11) of the 1976 Code, as last amended by Act
349 of 1988, is further amended to read:
"(11) 'Internal Revenue Code' means the Internal Revenue
Code of 1986 as amended through December 31, 1988."
B. Section 12-16-20(5) of the 1976 Code, as amended by Act 463 of
1988, is further amended to read:
"(5) 'Internal Revenue Code' means the Internal Revenue Code
of 1986, as amended through December 31, 1988."
C. Subsections A and B of this section are effective for taxable
years beginning after 1988.
SECTION 26
TO AMEND SECTION 12-35-550, AS AMENDED, OF THE 1976 CODE, RELATING
TO SALES AND USE TAX EXEMPTIONS, SO AS TO EXEMPT THE GROSS PROCEEDS
OF THE SALE OF DENTAL PROSTHETIC DEVICES.
A. Section 12-35-550(31) of the 1976 Code is amended to read:
"(31) Gross proceeds from the sale of medicine and
prosthetic devices sold by prescription; hypodermic needles,
insulin, alcohol swabs, and blood sugar testing strips sold to
diabetics under the authorization and direction of a physician; and
dental prosthetic devices."
B. This section takes effect July 1, 1989.
SECTION 27
TO AMEND SECTION 50-3-315 OF THE 1976 CODE, RELATING TO DEPUTY
WILDLIFE CONSERVATION OFFICERS, SO AS TO PROVIDE THAT DEPUTY
WILDLIFE CONSERVATION OFFICERS COMMISSIONED BY THE SOUTH CAROLINA
WILDLIFE AND MARINE RESOURCES COMMISSION ARE VOLUNTEERS COVERED
BY
THE PROVISIONS OF CHAPTER 25 OF TITLE 8 AND NOT EMPLOYEES ENTITLED
TO COVERAGE OR BENEFITS PROVIDED IN TITLE 42.
Section 50-3-315 of the 1976 Code is amended by adding at the end:
"Deputy wildlife conservation officers commissioned by the
South Carolina Wildlife and Marine Resources Commission are
volunteers covered by the provisions of Chapter 25, Title 8 and not
employees entitled to coverage or benefits provided in Title
42."
SECTION 28
TO AMEND SECTION 61-5-180 OF THE 1976 CODE, RELATING TO THE
ISSUANCE OF TEMPORARY PERMITS FOR POSSESSION, SALE, OR CONSUMPTION
OF ALCOHOLIC BEVERAGES IN SEALED CONTAINERS, SO AS TO PROVIDE THAT
THE PERMIT FEE MUST BE CREDITED TO THE GENERAL FUND OF THE STATE.
A. The first paragraph of Section 61-5-180 of the 1976 Code is
amended to read:
"In addition to the provisions of Section 61-5-85, the
commission may issue a temporary permit to allow the possession,
sale, and consumption of alcoholic liquors in sealed containers of
two ounces or less. This permit is valid for a period not to
exceed twenty-four hours and may be issued only to bona fide
nonprofit organizations and business establishments otherwise
authorized to be licensed for sales. The commission shall charge
a nonrefundable filing fee of one hundred dollars for processing
each application and a daily permit fee of fifty dollars for each
day for which a permit is approved. An application must be filed
for each permit requested. The permit fees must be credited to
the general fund of the State. The commission in its sole
discretion shall specify the terms and conditions of the
permit."
B. This section is effective July 1, 1989.
SECTION 29
TO REPEAL SECTIONS 1-11-143 AND 8-11-85 OF THE 1976 CODE, RELATING
TO THE AMENDED MASTER HEALTH INSURANCE CONTRACT FOR PUBLIC
EMPLOYEES AND THE REQUIREMENT THAT TOTAL HEALTH INSURANCE
PREMIUMS
FOR ALL RETIRED STATE EMPLOYEES AND PUBLIC SCHOOL TEACHERS MUST BE
PAID FROM STATE FUNDS.
"Sections 1-11-143 and 8-11-85 of the 1976 Code are
repealed."
SECTION 30
TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF
CAPITAL IMPROVEMENT BONDS, SO AS TO AUTHORIZE THE ISSUANCE OF
ADDITIONAL BONDS; TO PROVIDE FOR THE RELEASE OF THE FUNDS SHOULD IT
BE FOUND TO BE NECESSARY; AND TO PROVIDE FOR THE TERMINATION OF
THESE PROVISIONS.
Item (f) of Section 3 of Act 1377 of 1968, as last amended by Act
638 of 1988, is further amended by adding:
"1. Department of Corrections
(a) 808-Bed Medium/Maximum
Security Institution $28,000,000
(b) 808-Bed Medium/Maximum
Security Institution $28,000,000
Total, Department of Corrections $56,000,000
The Budget and Control Board, after review of the Joint Bond
Review Committee, is hereby authorized and directed to regulate the
starting date of these projects approved for funding through the
issuance of Capital Improvement Bonds when, in their opinion, the
prison population increases in a sufficient number to warrant the
construction of these institutions.
In the event the Joint Bond Review Committee and the Budget and
Control Board do not find it necessary to authorize the bonds for
these additional institutions by June 30, 1990, the provisions of
this section will terminate by June 30, 1990.
2. Judicial Department
Supreme Court Renovations $4,000,000
Total, Judicial Department $4,000,000
Total, Both Agencies $60,000,000"
SECTION 31
TO AMEND SECTION 12-7-435, AS AMENDED, OF THE 1976 CODE, RELATING
TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR PURPOSES OF
THE STATE INDIVIDUAL INCOME TAX, SO AS TO ALLOW FEDERAL LAW
ENFORCEMENT OFFICERS A DEDUCTION EQUAL TO FIVE DOLLARS FOR EACH
REGULAR WORK DAY IN A TAXABLE YEAR.
A. Section 12-7-435 of the 1976 Code is amended by adding an
appropriately lettered item to read:
"( ) Federal law enforcement officers may deduct as a
subsistence allowance five dollars a day for each regular work day
in a taxable year."
B. This section is effective for taxable years beginning after
1988.
SECTION 32
TO AMEND SECTION 12-35-360 OF THE 1976 CODE, RELATING TO
APPLICATION AND VALIDITY OF THE RETAIL SALES TAX LICENSE, SO AS TO
ELIMINATE THE REQUIREMENT THAT A BUSINESS REMAIN IN THE SAME
LOCATION FOR THE LICENSE TO CONTINUE IN EFFECT; AND TO AMEND
SECTION 12-35-815, AS AMENDED, RELATING TO THE USE TAX CREDIT
ALLOWED IN THIS STATE ON TANGIBLE PERSONAL PROPERTY ON WHICH SALES
TAX WAS PAID IN ANOTHER STATE, SO AS TO ALLOW THE CREDIT WHEN USE
TAX WAS PAID ON THE PROPERTY IN THE OTHER STATE.
A. Section 12-35-360 of the 1976 Code is amended to read:
"Section 12-35-360. The license tax provided for in this
article must be paid to the commission at the time application for
the retail license is made. The retail license is valid and
continues in force so long as the person to whom it is issued
continues in the same business, unless revoked by the commission
for cause."
B. Section 12-35-815 of the 1976 Code, as added by Section 25N(2),
Part II, Act 170 of 1987, is amended to read:
"Section 12-35-815. When a taxpayer is liable for the use
tax imposed by this article on tangible personal property purchased
in another state upon which a sales or use tax was due and paid in
the other state, the amount of the sales or use tax due and paid in
the other state is allowed as a credit against the use tax due this
State, upon proof of payment of the sales or use tax, if the state
in which the property was purchased allows substantially similar
tax credits on tangible personal property purchased in this State.
If the amount of the sales or use tax paid in the other state is
less than the amount of use tax imposed by this article, the user
shall pay the difference to the commission."
C. This section takes effect July 1, 1989.
SECTION 33
TO AMEND SECTION 12-31-250 OF THE 1976 CODE, RELATING TO FEES,
VIOLATIONS, AND FEE DISTRIBUTION FOR PURPOSES OF THE ROAD TAX ON
MOTOR CARRIERS, SO AS TO REQUIRE MOTOR CARRIERS OPERATING MOTOR
VEHICLES IN THIS STATE TO OBTAIN AN ANNUAL REGISTRATION CARD AND
IDENTIFICATION MARKER FROM THE SOUTH CAROLINA TAX COMMISSION FOR A
FEE OF FOUR DOLLARS FOR EACH POWER UNIT THEY OPERATE IN THIS STATE
AND TO PROVIDE FOR THE DISPOSITION OF THE FEES.
A. Section 12-31-250 of the 1976 Code is amended to read:
"Section 12-31-250. A motor carrier operating motor vehicles
in this State shall apply to the South Carolina Tax Commission
annually for a registration card and identification marker for each
power unit it operates in this State. For issuing each registration
card and identification marker, a fee of four dollars must be paid
to the Tax Commission at the time of making the application. Any
person violating the provisions of this section, upon conviction,
must be punished as provided in Section 12-31-630.
No card or marker may be issued by the Tax Commission until after
the fee provided in this section is paid. Fifty-five percent of
the fees provided for by this section must be credited to the state
highway fund. The remaining portion of the fees must be deposited
in the state treasury and distributed annually by the State
Treasurer to municipalities as follows: (1) three-fifths must be
distributed to municipalities pro rata, according to population as
shown by the most recent United States census. In each annual
distribution of these funds, each county seat shall receive two
thousand dollars or its share according to population, whichever is
greater; and no municipality may receive more than ten thousand
dollars in any annual distribution and (2) two-fifths must be
distributed to municipalities pro rata according to population as
shown by the most recent United States census. There may be no
deduction from the funds distributed to municipalities for costs of
collection and administration."
B. This section takes effect September 1, 1989.
SECTION 34
TO AMEND THE 1976 CODE BY ADDING SECTION 12-47-445 SO AS TO PROVIDE
THAT THE PROVISIONS OF SECTION 12-47-440 RELATING TO ABATEMENT AND
REFUND DO NOT APPLY TO CLAIMS FOR ABATEMENT OR REFUND RESULTING
FROM A FINAL DECISION OF A COURT OF COMPETENT JURISDICTION
DECLARING A TAX LAW OF THIS STATE UNCONSTITUTIONAL OR OTHERWISE
UNLAWFUL AND TO DEFINE "FINAL DECISION".
A. Article 5, Chapter 47, Title 12 of the 1976 Code is amended by
adding:
"Section 12-47-445. The provisions of Section 12-47-440 do
not apply to claims for abatement or refund resulting from a
decision of a court of competent jurisdiction declaring a tax law
of this State unconstitutional or otherwise unlawful. For purposes
of this section, a final decision is the decision of a court
declaring the law unconstitutional or otherwise unlawful and from
which the appropriate officials of this State cannot or do not take
an appeal or request a rehearing."
B. This section takes effect upon approval by the Governor.
SECTION 35
TO AMEND SECTIONS 44-6-140, 44-6-150, 44-6-160, 44-6-170, 44-6-180,
AND 44-6-200, OF THE 1976 CODE, RELATING TO THE SOUTH CAROLINA
MEDICALLY INDIGENT ASSISTANCE ACT, SO AS TO REQUIRE ADJUSTMENT AT
LEAST EVERY TWO YEARS OF PROSPECTIVE PAYMENTS TO HOSPITALS TO
REFLECT THE MOST RECENT COST DATA, TO DELETE REFERENCES TO COUNTY
ASSESSMENTS, TO CHANGE THE NAME OF THE SOUTH CAROLINA MEDICALLY
INDIGENT ASSISTANCE FUND TO THE SOUTH CAROLINA MEDICALLY INDIGENT
ASSISTANCE PROGRAM, TO PROVIDE THAT HOSPITALS MUST PROVIDE UP TO
FIFTEEN MILLION DOLLARS OF UNREIMBURSED INPATIENT HOSPITAL CARE, TO
PROVIDE CIVIL PENALTIES FOR VIOLATIONS, TO DELETE OBSOLETE
PROVISIONS, TO PROVIDE FOR THE ADJUSTMENT OF HOSPITAL CHARGES FOR
PATIENTS SPONSORED BY THE PROGRAM, TO DELETE PROVISIONS RELATING TO
TARGET RATE OF INCREASE, AND TO REVISE EXISTING PENALTIES FOR FALSE
REIMBURSEMENT OR ELIGIBILITY DETERMINATIONS, TO REQUIRE REPORTING
OF ADDITIONAL DATA AND CLARIFY DATA COLLECTION AND PREPARATION
EXPENSE REIMBURSEMENT, TO CONFORM CONFIDENTIALITY PROVISIONS TO THE
ADDITIONAL REPORTING REQUIREMENTS, TO REQUIRE AT LEAST SEMIANNUAL
RELEASE OF VARIOUS ITEMS OF PATIENT MEDICAL RECORD INFORMATION TO
SUBMITTING HOSPITALS AND THE HOSPITALS DESIGNEES, TO PROVIDE THAT
THE DATA REQUIRED TO BE REPORTED UNDER THIS SECTION MAY NOT BE
RELEASED IN THE FORM REPORTED UNDER THE FREEDOM OF INFORMATION
ACT,
TO REVISE THE METHOD BY WHICH THE HEALTH CARE PLANNING AND
OVERSIGHT COMMITTEE MAKES RECOMMENDATIONS ABOUT DATA COLLECTION,
TO
CLARIFY FURTHER THE CONFIDENTIALITY AND LAWFUL RELEASE OF THE DATA
COLLECTED, TO INCREASE THE FINE FOR VIOLATIONS, AND TO IMPOSE AN
ADDITIONAL GENERAL CRIMINAL PENALTY; TO AMEND THE 1976 CODE BY
ADDING SECTIONS 44-6-146 AND 44-6-155 AND ARTICLE 11, CHAPTER 23,
TITLE 12, SO AS TO CONSOLIDATE ALL ASSESSMENTS FOR INDIGENT MEDICAL
CARE AND PROVIDE A PENALTY ON COUNTIES FAILING TO PAY ASSESSMENTS
IN A TIMELY MANNER, TO ESTABLISH THE MEDICAID EXPANSION FUND, TO
PROVIDE FOR ITS FUNDING AND USES, TO IMPOSE AN ANNUAL LICENSE TAX
ON GENERAL HOSPITALS LICENSED BY THE STATE DEPARTMENT OF HEALTH
AND
ENVIRONMENTAL CONTROL, AND TO PROVIDE FOR THE CALCULATION OF AND
ENFORCEMENT OF THE TAX AND THE DISPOSITION OF THE REVENUES; TO
PROVIDE THAT IF ANY PROVISION CONTAINED IN THIS SECTION OF PART II
OF THIS ACT IS SUSPENDED, MADE UNENFORCEABLE, OR CANNOT BE
IMPLEMENTED BECAUSE OF STATE OR FEDERAL ACTION, THE ENTIRE SECTION
IS SUSPENDED; AND TO REPEAL SECTIONS 43-7-10, 44-6-133, 44-6-134,
44-6-136, 44-6-145, 44-6-205, 44-6-206, 44-6-207, 44-6-208,
44-6-209, 44-6-210, AND SUBSECTION (C) OF SECTION 44-6-160 OF THE
1976 CODE, RELATING TO INDIGENT HEALTH CARE.
A. Section 44-6-140 of the 1976 Code is amended to read:
"Section 44-6-140. (A) To provide cost containment
incentives for providers of care to Medicaid recipients, the
commission shall convert the Medicaid hospital reimbursement system
from a retrospective payment system to a prospective payment system
by October 1, 1985. The prospective payment system includes, at a
minimum, the following elements:
(1) a maximum allowable payment amount established for
individual hospital products, services, patient diagnoses, patient
day, patient admission, or per patient, or any combination thereof.
This payment must be based on hospital costs rather than hospital
charges and must be adjusted at least every two years to reflect
the most recent audited cost data available. The commission shall
set by regulation those circumstances under which a hospital may
seek an exception. The maximum allowable payment amount must be
weighted to allow for the costs of medical education and primary,
secondary, or tertiary care considerations;
(2) payment on a timely basis to the hospital by the commission
or patient or both, of the maximum allowable payment amount
determined by the commission; and
(3) acceptance by the hospital of the maximum payment amount as
payment in full, which includes any deductible or copayment
provided for in the state Medicaid program.
(B) The commission shall at the same time implement other cost
containment measures which include, but are not limited to:
(1) utilization reviews for appropriateness of treatment and
length of stay;
(2) preadmission certification of nonemergency admissions;
(3) mandatory outpatient surgery in appropriate cases;
(4) a second surgical opinion pilot study; and
(5) procedures for encouraging the use of outpatient services.
The commission, to the fullest extent possible, shall utilize
information required in this subsection in the form hospitals are
presently submitting the information to other governmental agencies
or in the form hospitals are presently utilizing the information
within the hospital."
B. Chapter 6, Title 44 of the 1976 Code is amended by adding:
"Section 44-6-146. (A) Every fiscal year the State
Treasurer shall withhold from the portion of the annual state
income tax allotted to the counties, a sum equal to fifty cents per
capita based on the population of the several counties as shown by
the latest official census of the United States. The money
withheld by the State Treasurer must be placed to the credit of the
commission and used to provide Title XIX (Medicaid) services.
(B) County governments are assessed an additional thirteen
million dollars annually for use as matching funds for Medicaid
services. Of these funds, seven and a half million dollars must be
deposited into the Medicaid Expansion Fund created by Section
44-6-155.
The commission shall assess each county its share of the thirteen
million dollars based on a formula which equally weighs the
following factors in each county: property value, personal income,
net taxable sales, and the previous two years of claims against the
Medically Indigent Assistance fund or program against county
residents. If a trust fund has been established in a county to
fund indigent care in the county, contributions on behalf of the
county must be credited against the county assessment.
(C) Within thirty days of the first day of the state's fiscal
year, and on the first day of the other three quarters, each county
shall remit one fourth of its total assessment to the commission.
The commission shall allow a brief grace period during which late
payments are not subject to interest or penalty.
Any county which fails to pay its assessment within the time
allotted must pay, in addition to the assessment, a penalty of five
percent of the assessment and interest at one and one half percent
per month from the date the assessment was originally due to the
date of the payment of the assessment and penalty. The commission
may in its discretion waive or reduce the penalty or interest or
any part thereof."
C. Section 44-6-150 of the 1976 Code is amended to read:
"Section 44-6-150. (A) There is created the South Carolina
Medically Indigent Assistance Program, administered by the
commission. The program is authorized to sponsor up to fifteen
million dollars of inpatient hospital care, for which hospitals
shall receive no reimbursement except as provided in Section
44-6-155(D). Any general hospital equipped to provide the
necessary treatment must:
(1) admit a patient sponsored by the program; and
(2) accept the transfer of a patient sponsored by the program
from a hospital which is not equipped to provide the necessary
treatment.
In addition to or in lieu of any action taken affecting the
license of the hospital, when it is established that any officer,
employee, or member of the hospital medical staff has violated the
provisions of this section, the South Carolina Department of Health
and Environmental Control shall require the hospital to pay a civil
penalty of up to ten thousand dollars.
(B) Hospital charges for patients sponsored by the Medically
Indigent Assistance Program must be adjusted by the most recent
audited cost to charge ratio when used to calculate:
(1) claims against the Medically Indigent Assistance Program by
county residents as required by Section 44-6-146(B);
(2) the fifteen million dollar limit on hospital care sponsored
by the Medically Indigent Assistance Program; and
(3) hospital reimbursements authorized by Section 44-6-155(D).
(C) In administering the Medically Indigent Assistance Program,
the commission shall determine:
(1) the method of administration, including the specific
procedures and materials to be used statewide in determining
eligibility for the program
(a) In nonemergency cases, the patient shall submit the
necessary documentation to his county of residence or its designee
to determine eligibility before admission to the hospital.
(b) In case of an emergency, the hospital shall admit the
patient pursuant to Section 44-7-260. If a hospital determines
that the patient could be eligible for the program, it shall
forward the necessary documentation along with the patient's bill
and other supporting information to the patient's county of
residence or its designee for processing. A county may request that
all claims by its residents be submitted to the county or its
designee for review before being forwarded to the commission for
processing. If a county exercises its option to review claims, the
reviews must be completed within fifteen days.
(2) the population to be served including eligibility criteria
based on family income and resources. Eligibility is determined on
an episodic basis for a given spell of illness. Eligibility
criteria must be uniform statewide and may include only those
persons who meet the definition of medically indigent;
(3) the health care services covered;
(4) a system to reimburse hospitals if funds are available as
provided in Section 44-6-155(D);
(5) requirements for hospitals to report information needed to
administer the program. This includes, but is not limited to, each
sponsored patient's name, program authorization number, county of
residence, primary diagnosis, and hospital charges.
(6) a process by which any claim or eligibility determination
can be contested and appealed; and
(7) a method for processing claims. The program may not
sponsor a patient until all other means of paying for or providing
services have been exhausted. This includes Medicaid, Medicare,
health insurance, employee benefit plans, or other persons or
agencies required by law to provide medical care for the person.
Hospitals may require eligible patients whose gross family income
is between one hundred percent and two hundred percent of the
federal poverty guidelines, to make a copayment based on a sliding
payment scale developed by the commission based on income and
family size.
(D) Nothing in this section may be construed as relieving
hospitals of their Hill-Burton obligation to provide unreimbursed
medical care to indigent persons."
D. Chapter 6, Title 44 of the 1976 Code is amended by adding:
"Section 44-6-155. (A) There is created the Medicaid
Expansion Fund into which must be deposited:
(1) funds collected pursuant to Section 44-6-146;
(2) funds collected pursuant to Section 12-23-810; and
(3) funds appropriated pursuant to subsection (B) of this
section.
This fund must be separate and distinct from the general fund.
Earnings on investments from this fund must remain part of the
separate fund and must not be deposited in the general fund.
(B) The commission shall estimate the amount of federal matching
funds which will be spent in the State during the next fiscal year
due to the changes in Medicaid authorized by subsection (C) of this
section. Based on this estimate, the General Assembly shall
appropriate to the Medicaid Expansion Fund state funds equal to the
additional state revenue generated by the expenditure of these
federal funds.
(C) Monies in the fund must be used for the following purposes:
(1) to provide Medicaid coverage to pregnant women and infants
with family incomes above one hundred percent but below one hundred
eighty-five percent of the federal poverty guidelines;
(2) to provide Medicaid coverage to children aged one through
six with family income below federal poverty guidelines;
(3) to provide Medicaid coverage to aged and disabled persons
with family income below federal poverty guidelines;
(4) to provide Medicaid coverage through a Medically Needy
program to eligible persons in families with medical expenses which
reduce the net family income below state and federal standards;
(5) to provide Medicaid reimbursement for hospital patients in
need of subacute care, including patients in swing beds;
(6) to provide additional Medicaid reimbursement for hospitals
which provide a disproportionate share of inpatient care for
Medicaid patients;
(7) to provide up to $240,000 to reimburse the Division of
Research and Statistical Services and hospitals for the cost of
collecting and reporting data pursuant to Section 44-6-170; and
(8) to supplement state funds needed to administer items (3)
and (4), not to exceed $700,000.
(D) All funds not expended for the purposes specified above must
be used at the end of the fiscal year to reimburse hospitals for
care given to patients sponsored by the Medically Indigent
Assistance Program during the same fiscal year.
(E) Any funds not expended for the purposes specified in
subsections (C) and (D) above during a given year are carried
forward to the succeeding year for the same purposes."
E. Section 44-6-160(B) of the 1976 Code is amended to read:
"(B) The commission may impose penalties or sanctions it
considers appropriate. Penalties must be prospective. Financial
penalties are limited to a reduction in a hospital's target rate of
increase for the following year. Any reduction in a hospital's
target rate of increase for the next year must not be greater than
the amount the hospital exceeded the industry's target rate of
increase for the previous year. Once a hospital is sanctioned, it
must be reviewed annually until it succeeds in remaining below its
target rate of increase."
F. Section 44-6-170 of the 1976 Code is amended to read:
"Section 44-6-170. (A) In order to develop a timely and
meaningful data base and to assist the commission in its efforts to
properly carry out its functions as provided by the South Carolina
Medically Indigent Assistance Act, the Division of Research and
Statistical Services of the State Budget and Control Board shall
require the standardized reporting by hospitals of the following
hospital-specific information for the twelve-month period from
October first through September thirtieth for each federal fiscal
year, and the commission shall reimburse the division for the cost
of collecting and preparing this information. This information
must be submitted by February first of the following year:
(1) total gross revenue, including:
(a) gross inpatient revenue;
(b) Medicare gross revenue;
(c) Medicaid gross revenue;
(d) South Carolina Medically Indigent Assistance Fund gross
revenue;
(2) total deductions from gross revenue, including:
(a) Medicare contractual allowances;
(b) Medicaid contractual allowances;
(c) other contractual allowances; and
(d) bad debts;
(3) total direct costs and medical education
(a) reimbursed; and
(b) unreimbursed;
(4) total indirect costs of medical education
(a) reimbursed; and
(b) unreimbursed;
(5) total costs of care for medically indigent
(a) reimbursed; and
(b) unreimbursed;
(6) total admissions, including:
(a) Medicare admissions;
(b) Medicaid admissions;
(c) South Carolina Medically Indigent Assistance Program
admissions; and
(d) other admissions;
(7) total patient days;
(8) average length of stay;
(9) total outpatient visits;
(10) extracts of the following medical record information:
(a) patient date of birth;
(b) patient number;
(c) patient sex;
(d) patient county of residence;
(e) patient zip code;
(f) patient race;
(g) date of admission;
(h) source of admission;
(i) type of admission;
(j) discharge date;
(k) principal and up to four other diagnoses;
(l) principal procedure and date;
(m) patient status at discharge;
(n) up to four other procedures;
(o) hospital identification number;
(p) principal source of payment; and
(q) total charges and components of those charges, including
associated room and board units;
(r) patient medical record or chart number; and
(s) attending physician and primary surgeon.
In addition, the division shall collect data as recommended by the
Health Care Planning and Oversight Committee pursuant to subsection
(C) of this section and other data relative to the medically
indigent population, including: demographic characteristics,
economic status, utilization of health care services, and
fluctuations in the population over time. These requirements are
promulgated by regulations in accordance with the Administrative
Procedures Act.
(B) It is the intent of the South Carolina Medically Indigent
Assistance Act and of regulations promulgated pursuant thereto to
protect the confidentiality of individual patient information,
physician identifiers, and the proprietary information of
hospitals. Only the data collected pursuant to the Health Care
Planning and Oversight Committee recommendations, as provided in
this section, may be collected, analyzed, and released to
nongovernmental entities and individuals as directed by that
committee. All other patient, physician, and hospital-specific
information collected pursuant to subsection (A) of this section is
confidential and must not be released to any nongovernmental entity
or individual unless release is made of statistical information so
that no individual patient, physician, or hospital can be
identified, except that release must be made, no less than
semi-annually, of the patient medical record information listed in
Section 44-6-170(A)(10)(a)-(s) to submitting hospitals, and the
information listed in Section 44-6-170(A)(10)(a)-(r) to the
hospitals' designee. The information provided to any governmental
agency as provided in this section must not be released pursuant to
the Freedom of Information Act in the form in which it was provided
to any other party. For purposes of this section, governmental
agency does not include a governmental hospital.
(C) Because accurate, comparable data on the costs and usage of
health care services is not currently available in South Carolina,
it is extremely difficult to make careful policy choices for future
health care cost management strategies. Neither the public sector
nor the private sector purchasers of health care have available
sufficient data to enable them to make informed choices among
health care providers in the market place. The lack of a uniform
system for the collection and analysis of data, and the lack of
full participation by providers, purchasers, and payors has led to
inadequate and unuseable data. In order to remedy this problem, it
is necessary to create a uniform system for the collection,
analysis, and distribution of health care cost data. The purposes
of this data system are to insure that data is available to make
valid comparisons of prices among providers of services and to
support ongoing analysis of the health care delivery system.
Accordingly, after receiving comments and recommendations from
health care providers, consumers, and governmental agencies, the
Health Care Planning and Oversight Committee shall recommend to the
Division:
(1) the data elements to be collected and analyzed. These
elements may include, but are not limited to, those already listed
in subsection (A) of this section;
(2) the format in which the data may be released to the public;
and
(3) the frequency with which the data should be collected and
released on a routine basis."
G. Section 44-6-180 of the 1976 Code is amended to read:
"Section 44-6-180. (A) Patient records, received by
counties, the commission, or other entities involved in the
administration of the program created pursuant to Section 44-6-150
are confidential. Patient records and physician and hospital
identifiers gathered pursuant to Section 44-6-170 are also
confidential. This information collected pursuant to Section
44-6-170(A)(10)(a)-(s) must not be released to nongovernmental
entities or individuals unless release is made of aggregate
statistical information so that no individual patient, physician,
or hospital can be identified, except as provided in Section
44-6-170(C). Nothing in this subsection may be construed as
limiting access to information needed by any governmental agency as
provided in Section 44-6-170(B) or by the submitting hospitals or
their designee as provided in Section 44-6-170(B).
(B) Any person violating the provisions of this section is guilty
of a misdemeanor, and upon conviction, must be fined not more than
five thousand dollars or imprisoned not more than one year or
both."
H. Section 44-6-200 of the 1976 Code is amended to read:
"Section 44-6-200. (A) Any person who commits a material
falsification of information required to determine eligibility for
the Medically Indigent Assistance Program is guilty of a
misdemeanor and, upon conviction, must be fined not more than five
hundred dollars or imprisoned for not more than one year, or both.
(B) Any general hospital which materially falsifies information
to seek reimbursement from the Medically Indigent Assistance
Program must be fined not more than five thousand dollars.
(C) Unless otherwise specified in this chapter, any individual or
facility violating any of the provisions of this chapter or a
regulation under this chapter is guilty of a misdemeanor and, upon
conviction, must be fined not more than one hundred dollars for the
first offense and not more than five thousand dollars for a
subsequent offense."
I. Chapter 23, Title 12 of the 1976 Code is amended by adding:
"Article 11
Indigent Health Care
Section 12-23-810. Every hospital licensed as a general hospital
by the Department of Health and Environmental Control is subject to
the payment of an excise, license, or privilege tax. Total annual
revenues from this tax must equal seven and a half million dollars.
Each hospital's tax must be based on its total number of patient
days from the prior year, excluding Medicaid patient days, adjusted
by the hospital's ratio of total net to gross patient revenue. Net
patient revenue for purposes of this formula is defined as gross
patient revenue less contractual allowances, bad debts,
uncompensated indigent care, property taxes, and state and federal
income taxes.
Section 12-23-820. The Tax Commission shall administer and
enforce the provisions of this article, and may promulgate
regulations to enforce such provisions. The hospital tax levied
pursuant to this article must be collected in accordance with the
provisions of Chapter 54 of Title 12.
Section 12-23-830. On the first day of each quarter, each general
hospital shall remit one fourth of its annual tax to the Tax
Commission. The Tax Commission shall allow a brief grace period
during which late payments are not subject to interest or penalty.
Any hospital required by this article to pay the tax which fails
to do so within the time allotted shall pay, in addition to the
tax, a penalty of five percent of the tax and interest at one and
one half percent per month from the date the tax was originally due
to the date of the payment of the tax and penalty. The Tax
Commission may in its discretion waive or reduce the penalty or
interest or any part of it.
Section 12-23-840. Revenues derived under the provisions of this
article must be deposited in the Medicaid Expansion Fund created by
Section 44-6-155."
J. If any provision of subsections A, B, C, D, or G of this
section is suspended, rendered unenforceable, or cannot be
implemented as a result of state or federal action, the entire
section is suspended.
K. Sections 43-7-10, 44-6-133, 44-6-134, 44-6-136, 44-6-145,
44-6-205, 44-6-206, 44-6-207, 44-6-208, 44-6-209, 44-6-210, and
Section 44-6-160(C) of the 1976 Code are repealed.
SECTION 36
TO AMEND SECTION 12-37-220, AS AMENDED, OF THE 1976 CODE, RELATING
TO PROPERTY TAX EXEMPTIONS, SO AS TO INCLUDE GREENHOUSES WITHIN THE
EXEMPTION FOR FARM EQUIPMENT.
A. Section 12-37-220 B.(14) of the 1976 Code is amended by adding
at the end:
"For purposes of this item, farm equipment includes
greenhouses."
B. This section is effective for taxable years beginning after
1988.
SECTION 37
TO AMEND SECTION 48-47-175, AS AMENDED, OF THE 1976 CODE, RELATING
TO THE TAX ON LOW-LEVEL RADIOACTIVE WASTE DISPOSAL, SO AS TO DEFINE
"LOW-LEVEL RADIOACTIVE WASTE", AND SPECIFY THE METHOD OF
CALCULATING THE TAX.
Section 48-47-175 of the 1976 Code, as amended by Section 10A,
Part II, Act 170 of 1987, is further amended by adding at the end:
"D. For purposes of this section, 'low-level radioactive
waste' means property delivered to the low-level radioactive waste
disposal facility in Barnwell County for long-term disposal. It
does not include materials consumed or disposed of arising out of
the operation of the facility.
E. The tax imposed by this section is calculated by multiplying
the amount of the tax imposed on a cubic foot by the cubic foot
amount specified in the permits required by the State Department of
Health and Environmental Control and submitted at the time of
delivery of the low-level radioactive waste."
SECTION 38
TO AMEND SECTIONS 25-1-440 AND 25-1-460 OF THE 1976 CODE, RELATING
TO THE EMERGENCY POWERS OF THE GOVERNOR AND THE AUTHORITY OF THE
STATE BUDGET AND CONTROL BOARD TO MAKE EMERGENCY LOANS TO
COUNTIES
AND MUNICIPALITIES WHEN THE GENERAL ASSEMBLY IS NOT IN SESSION, SO
AS TO INCREASE FROM FIVE THOUSAND TO TEN THOUSAND DOLLARS THE
MAXIMUM DISASTER GRANT THE GOVERNOR MAY MAKE TO INDIVIDUALS AND
FAMILIES AND REQUIRE THE MAXIMUM AMOUNT TO BE ADJUSTED TO REFLECT
CHANGES IN THE CONSUMER PRICE INDEX, AND TO PROVIDE THAT THE STATE
BUDGET AND CONTROL BOARD MAY MAKE EMERGENCY LOANS TO COUNTIES
AND
MUNICIPALITIES ONLY WHEN DAMAGE OR DESTRUCTION RESULTS FROM A
DISASTER DECLARED AS A STATE OF EMERGENCY BY THE GOVERNOR AND TO
AUTHORIZE THE BOARD TO REIMBURSE STATE AGENCIES FOR OTHERWISE
UNREIMBURSED UNBUDGETED EMERGENCY EXPENDITURES RESULTING FROM
THE
AGENCIES PARTICIPATING IN THE SOUTH CAROLINA COMPREHENSIVE
EMERGENCY PREPAREDNESS PLAN.
A. Section 25-1-440(a)(8)(iii) of the 1976 Code is amended to
read:
"(iii) Make financial grants to meet disaster related
necessary expenses or serious needs of individuals or families
adversely affected by a major disaster which may not otherwise be
adequately met from other means of assistance. No individual or
family may receive grants aggregating more than ten thousand
dollars with respect to any single major disaster subject to the
limitations contained in subitem (ii) of this item. The ten
thousand dollar limit must annually be adjusted to reflect changes
in the Consumer Price Index for All Urban Consumers published by
the Bureau of Labor Statistics of the United States Department of
Labor."
B. Section 25-1-460 of the 1976 Code is amended to read:
"Section 25-1-460. When the General Assembly is not in
session and emergency funds are required by counties or
municipalities, the State Budget and Control Board may authorize
loans for emergency and recovery operations to counties and
municipalities not to exceed one and one-half million dollars to
any single county or municipality from the reserve fund of the
state treasury paid from that fund from any monies in that fund not
appropriated for other purposes. Any monies so used must be drawn
from the fund on warrants of the board repayable by the borrowing
county or municipality and secured by the full faith and credit of
the county or municipality involved. These loans may be made only
when damage or destruction results from a disaster declared as a
state of emergency by the Governor. The board may also reimburse
state agencies for unbudgeted expenditures or expenditures
otherwise unreimbursed by the federal government for emergency
expenditures resulting from their participation in the disaster
based on their assigned responsibilities promulgated in the South
Carolina Comprehensive Emergency Preparedness Plan."
SECTION 39
TO AMEND SECTION 12-7-435, AS AMENDED, OF THE 1976 CODE, RELATING
TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR PURPOSES OF
THE STATE INDIVIDUAL INCOME TAX, SO AS TO LIMIT TO THREE THOUSAND
DOLLARS THE DEDUCTIONS OF AMOUNTS RECEIVED FROM THE VARIOUS STATE
RETIREMENT SYSTEMS, OTHER SOUTH CAROLINA POLICE OR FIREFIGHTER
COUNTY OR MUNICIPAL RETIREMENT SYSTEMS, AND RETIREMENT SYSTEMS OF
OTHER STATES; TO AMEND SECTIONS 9-1-1680, AS AMENDED, 9-8-190,
9-9-180, AND 9-11-270, RELATING TO THE TAX EXEMPTION ALLOWED
RETIREMENT BENEFITS OF THE VARIOUS STATE RETIREMENT SYSTEMS, SO AS
TO DELETE THE EXEMPTIONS FROM THE STATE INDIVIDUAL INCOME TAX AND
THE SOUTH CAROLINA ESTATE TAX; AND TO REPEAL SECTION 12-7-565
RELATING TO RECIPROCAL AGREEMENTS WITH OTHER STATES ON THE TAXING
OF RETIREMENT BENEFITS.
A. Item (d) of Section 12-7-435 of the 1976 Code is amended to
read:
"(d) The first three thousand dollars of the total amount
received by a taxpayer from the various state retirement systems as
provided in Title 9 and from the retirement systems of other
states."
B. Item (e) of Section 12-7-435, as amended by Section 25E, Part
II, Act 170 of 1987, is further amended to read:
"(e) The first three thousand dollars of retirement pay
received by police officers or firemen from a South Carolina
municipality or county group retirement plan."
C. Section 9-1-1680 of the 1976 Code, as amended by Act 297 of
1988, is further amended to read:
"Section 9-1-1680. The right of a person to an annuity or a
retirement allowance or to the return of contributions, an annuity,
or retirement allowance itself, any optional benefit, or any other
right accrued or accruing to any person under the provisions of
this chapter, and the monies of the system created under the
provisions of this chapter or any private retirement system
operated by a municipality, are exempted from any state or
municipal tax, except the taxes imposed pursuant to Chapters 7, 15,
and 16 of Title 12, and exempted from levy and sale, garnishment,
attachment, or any other process and are unassignable except as
specifically otherwise provided in this chapter."
D. Section 9-8-190 of the 1976 Code is amended to read:
"Section 9-8-190. The right of a person to a retirement
allowance or to the return of contributions, a retirement allowance
itself, any optional allowance or payment on death or any other
right accrued or accruing to any person under the provisions of
this chapter, and the monies of the system are exempted from state
or municipal tax, except the taxes imposed pursuant to Chapters 7,
15, and 16 of Title 12, and exempted from levy and sale,
garnishment, attachment, or any other process and are unassignable
except as otherwise provided in this chapter."
E. Section 9-9-180 of the 1976 Code is amended to read:
"Section 9-9-180. The right of a person to a retirement
allowance or to the return of contributions, a retirement allowance
itself, any optional allowance or payment on death or any other
right accrued or accruing to any person under the provisions of
this chapter, and the monies of the system are exempted from any
state or municipal tax, except the taxes imposed pursuant to
Chapters 7, 15, and 16 of Title 12, and exempted from levy and
sale, garnishment, attachment, or any other process and are
unassignable except as specifically otherwise provided in this
chapter."
F. Section 9-11-270 of the 1976 Code is amended to read:
"Section 9-11-270. The right of a person to retirement
allowance or to the return of contributions, a retirement allowance
itself, any optional or death benefit, or any other right accrued
or accruing to a person under the provisions of this chapter, and
the monies of the system are exempted from any state or municipal
tax, except the taxes imposed pursuant to Chapters 7, 15, and 16 of
Title 12, and exempted from levy and sale, garnishment, attachment,
or any other process, and are unassignable except as specifically
otherwise provided in this chapter."
G. Section 12-7-565 of the 1976 Code is repealed.
H. This section is effective for taxable years beginning after
1988 and with respect to estates of decedents dying after 1988.
SECTION 40
TO AMEND SECTIONS 44-2-40 AND 44-2-60 OF THE 1976 CODE, RELATING TO
THE STATE UNDERGROUND PETROLEUM ENVIRONMENTAL RESPONSE BANK ACT,
SO
AS TO RAISE FROM SIXTY TO ONE HUNDRED DOLLARS THE REGISTRATION FEE
AND ANNUAL RENEWAL FEE ON UNDERGROUND PETROLEUM STORAGE TANKS.
A. Section 44-2-40(C) of the 1976 Code, as added by Act 486 of
1988, is amended to read:
"(C) The Superb Account must be used by the department for
carrying out the purposes of this chapter. The fund must be
credited with all fees, charges, and judgments allowable under this
chapter. Charges against the Superb Account may only be made in
accordance with the provisions of this chapter. No more than ten
dollars of the one hundred dollar registration fee may be used by
the department for the administration of the underground petroleum
storage tank regulatory program established by this chapter."
B. Section 44-2-60(B) of the 1976 Code, as added by Act 486 of
1988, is amended to read:
"(B) Upon application for a registration sticker or
certificate as described in subsection (A) above, the owner shall
pay to the department an initial registration fee in the amount of
one hundred dollars a tank and an annual renewal fee of one hundred
dollars a tank a year."
C. This section is effective with respect to initial registrations
and annual renewals occurring after June 30, 1989.
SECTION 41
TO AMEND THE 1976 CODE BY ADDING SECTION 59-6-15 SO AS TO ESTABLISH
THE BUSINESS-EDUCATION PARTNERSHIP FOR EXCELLENCE IN EDUCATION AND
ITS BUSINESS-EDUCATION SUBCOMMITTEE AND TO PROVIDE FOR THEIR
MEMBERSHIP, DUTIES, AND FUNCTIONS; TO AMEND SECTION 59-6-20, AS
AMENDED, RELATING TO THE DUTIES OF THE GOVERNOR AND STATE
SUPERINTENDENT OF EDUCATION AND OTHER OFFICIALS AND ENTITIES IN
REGARD TO THE SOUTH CAROLINA EDUCATION IMPROVEMENT ACT OF 1984;
AND
SECTION 59-6-30, RELATING TO CERTAIN ASSESSMENTS AND REPORTS
CONCERNING THE EDUCATION IMPROVEMENT ACT, SO AS TO DELETE
REFERENCES TO CERTAIN ELIMINATED COMMITTEES, SUBCOMMITTEES, AND
PARTNERSHIPS, TO INCLUDE IN THOSE SECTIONS THE DUTIES AND
RESPONSIBILITIES OF THE BUSINESS-EDUCATION PARTNERSHIP AND ITS
BUSINESS-EDUCATION SUBCOMMITTEE IN REGARD TO THE EDUCATION
IMPROVEMENT ACT, AND PROVIDE FOR THE REQUIREMENTS OF CERTAIN
FUNDING.
A. Chapter 6, Title 59 of the 1976 Code is amended by adding:
"Section 59-6-15. (A) There is created the
Business-Education Partnership for Excellence in Education and a
permanent standing subcommittee of the partnership for the purpose
of reviewing the implementation of the South Carolina Education
Improvement Act of 1984 and recommending other major education
initiatives.
The Business-Education Partnership for Excellence in Education
consists of the following persons:
( 1) thirty-two prominent civic and business leaders of which
fourteen are appointed by the Governor; six appointed by the State
Superintendent of Education; six appointed by the Chairman of the
Education and Public Works Committee of the House of
Representatives; and six appointed by the Chairman of the Education
Committee of the Senate;
( 2) twenty educators of which eight are appointed by the State
Superintendent of Education; four appointed by the Governor; four
appointed by the Chairman of the Education and Public Works
Committee of the House of Representatives; and four appointed by
the Chairman of the Education Committee of the Senate;
( 3) Speaker of the House of Representatives or his designee;
( 4) Lieutenant Governor or his designee;
( 5) Chairman of the Education and Public Works Committee of the
House of Representatives or his designee;
( 6) Chairman of the Education Committee of the Senate or his
designee;
( 7) Chairman of the Ways and Means Committee of the House of
Representatives or his designee;
( 8) Chairman of the Finance Committee of the Senate or his
designee;
( 9) Chairman of the Committee on Children or his designee;
(10) Chairman of the Select Committee or his designee;
(11) two legislators appointed by the Governor, one a member of
the House of Representatives and one a member of the Senate; and
(12) The Governor and State Superintendent of Education shall
serve as ex officio members.
The term of office of the members of the Business-Education
Partnership must be four years except that those first appointed
must serve terms of two, three, and four years as determined by
lot. Except in those cases where the term of a member of the
Business-Education Subcommittee has not expired, no member of the
Business-Education Partnership may serve more than two consecutive
terms. The number of appointments provided for in items (1) and
(2) above must be reduced proportionately by the membership
requirements of subsection (B) of this section.
The chairman of the Business-Education Partnership for Excellence
in Education must be elected by the members of the partnership and
must be chosen from among the thirty-two business and civic leaders
serving on the partnership. The Business-Education Partnership
must meet at the call of the chairman but not less than quarterly.
The Governor must preside at all regular and special meetings of
the partnership in which he is in attendance; at those meetings at
which the Governor is not in attendance the State Superintendent of
Education must preside, and in the absence of the superintendent,
the chairman of the partnership must preside.
The partnership in conjunction with the State Department of
Education may cause to be held statewide public forums for the
purpose of fostering open discussions regarding the impact of the
Education Improvement Act on the State's education system and
education reform in general.
(B) The Business-Education Partnership must establish a permanent
standing subcommittee called the Business-Education Subcommittee.
The subcommittee must be composed of twenty members of the
Business-Education Partnership. The composition of the subcommittee
must be:
(1) ten civic and business leaders;
(2) six educators; and
(3) four legislators.
The eighteen members serving on the Joint Business-Education
Subcommittee must remain on the Business-Education Subcommittee as
reconstituted on the effective date of this section. The terms of
office for members of the Business-Education Subcommittee must be
six years except for the initial members who must serve terms of
two, four, or six years as determined by lot. The chairman of the
subcommittee must be elected by the members of the subcommittee and
must be one of the ten civic and business leaders serving on the
subcommittee. Vacancies on the subcommittee must be filled from
the membership of the Business-Education Partnership by a majority
vote of the members of the partnership."
B. Section 59-6-20 of the 1976 Code, as last amended by Act 81 of
1987, is further amended to read:
"Section 59-6-20. The State Board of Education and State
Superintendent of Education must establish within the State
Department of Education a special unit at the division level called
the Public Accountability Division. This special unit must be
eliminated six years from the date of implementation of the
Education Improvement Act. The unit head shall hold a position
comparable to a deputy superintendent and must be under the direct
supervision of and shall report to the State Superintendent of
Education.
The Deputy Superintendent must provide all reports to the
Governor, Select Committee, Business-Education Partnership for
Excellence in Education, Business-Education Subcommittee, and State
Board of Education and respond to any inquiries for information.
The Business-Education Subcommittee shall serve as a screening
committee for the selection of the unit head. The screening
committee shall recommend for consideration three applicants.
Final selection of the unit head must be made by the State
Superintendent of Education after consulting with the Governor.
All other positions must be filled following current State
Personnel and State Department of Education employment procedures.
The new unit is responsible for planning, monitoring, and
reviewing programs developed under the Education Improvement Act
and shall provide information, recommendations, and an annual
assessment of the Education Improvement Act to the Governor, Select
Committee, and Business-Education Subcommittee.
The operating procedures for the new unit are the same as the
operating procedures for the three established divisions in the
State Department of Education. The Business-Education Subcommittee
shall review and approve all products produced by the new unit and
make recommendations to the State Board of Education for final
approval."
C. Section 59-6-30 of the 1976 Code is amended to read:
"Section 59-6-30. The State Board of Education shall provide
an assessment of the South Carolina Education Improvement Act of
1984 for consideration by the Business-Education Subcommittee and
the General Assembly. A special assessment must be provided on
March 1, 1985. Commencing in 1985, an annual assessment must be
provided by December first of each year and an appropriate amount
of funding must be provided for this purpose. The
Business-Education Subcommittee shall provide a report on the
assessment to the Business-Education Partnership, and the
partnership shall submit its recommendations to the General
Assembly prior to February first. The staff of the
Business-Education Subcommittee shall serve as the primary staff to
the Business-Education Partnership and may solicit the assistance
of the staffs of the House Education and Public Works Committee,
the Senate Education Committee, the Select Committee, the Public
Accountability Division, and the Governor's Office."
SECTION 42
TO AMEND SECTION 27, PART II, ACT 658 OF 1988, THE GENERAL
APPROPRIATIONS ACT FOR FISCAL YEAR 1988-89, RELATING TO SPECIAL TAX
TREATMENT ALLOWED FOR LONG-TERM CAPITAL GAINS RECOGNIZED IN 1987 SO
AS TO PROVIDE THAT ONLY GAINS RECOGNIZED PURSUANT TO A WRITTEN
CONTRACT OF SALE EXECUTED BETWEEN JANUARY 1, 1987, AND JUNE 22,
1987, QUALIFY FOR THE SPECIAL TREATMENT, AND TO PROVIDE THAT THE
FIRST INSTALLMENT OF THE STATE INCOME TAX REFUND FOR SUCH GAINS
MUST BE PAID WHEN REFUNDS ARE DUE TO BE PAID FOR THE 1990 TAXABLE
YEAR AND TO DELETE LANGUAGE AUTHORIZING THE TAX COMMISSION TO
MAKE
THE REFUND AT ANY TIME IN A YEAR.
Section 27, Part II, Act 658 of 1988 is amended to read:
"A. Long-term capital gains of individuals, partnerships
(including S corporations), estates, and trusts which were
recognized in 1987, pursuant to a written contract of sale executed
between January 1, 1987, and June 22, 1987, must be determined in
accordance with the provisions of Section 1202 of the Internal
Revenue Code of 1954, as amended through December 31, 1985.
B. The difference between the tax paid on the taxpayer's return
attributable to this long-term capital gain and the tax
attributable to this gain which would have been paid under the
provisions of this section is refundable to the taxpayer in two
equal annual installments with the first refund due to be paid when
refunds are paid for the 1990 taxable year. The South Carolina Tax
Commission may allow a portion or all of a refund installment due
to be used as a credit against the taxpayer's liability for that
year."
SECTION 43
TO ENACT THE "SOUTH CAROLINA INITIATIVE FOR CHILD CARE
ACT" INCLUDING PROVISIONS TO AMEND THE CODE OF LAWS OF SOUTH
CAROLINA, 1976, BY ADDING SECTION 12-7-1260 SO AS TO ALLOW CERTAIN
INCOME TAX CREDITS FOR EXPENDITURES MADE BY A TAXPAYER TO ESTABLISH
AND TO OPERATE A CHILD CARE PROGRAM FOR THE BENEFIT OF HIS
EMPLOYEES AND FOR CHILD CARE PAYMENTS MADE BY A TAXPAYER FOR THE
BENEFIT OF HIS EMPLOYEES; TO PROVIDE THAT THE HEALTH AND HUMAN
SERVICES FINANCE COMMISSION SHALL ESTABLISH CHILD DEVELOPMENT
SERVICES IN CERTAIN COUNTIES AND SHALL EXPAND EXISTING CHILD
DEVELOPMENT SERVICES IN OTHER COUNTIES WITHIN THE LIMITS OF
APPROPRIATIONS PROVIDED BY THE GENERAL ASSEMBLY AND IN ACCORDANCE
WITH CERTAIN GUIDELINES; TO AMEND SECTION 59-19-90, RELATING TO THE
GENERAL POWERS AND DUTIES OF SCHOOL TRUSTEES, SO AS TO INCLUDE THE
PROVIDING OF A SCHOOL-AGE CHILD CARE PROGRAM OR FACILITIES, AND TO
AMEND THE 1976 CODE BY ADDING SECTION 59-19-125 SO AS TO AUTHORIZE
EACH DISTRICT BOARD OF TRUSTEES TO LEASE ANY SCHOOL PROPERTY FOR A
RENTAL WHICH THE BOARD CONSIDERS REASONABLE OR PERMIT THE FREE USE
OF SCHOOL PROPERTY FOR A CIVIC OR PUBLIC PURPOSE OR THE OPERATION
OF A SCHOOL-AGE CHILD CARE PROGRAM FOR CHILDREN AGED FIVE THROUGH
FOURTEEN YEARS THAT OPERATES BEFORE OR AFTER THE SCHOOL DAY, OR
BOTH, AND DURING PERIODS WHEN SCHOOL IS NOT IN SESSION, IF THE
PROPERTY IS NOT NEEDED FOR SCHOOL PURPOSES; TO ESTABLISH THE SOUTH
CAROLINA PUBLIC/PRIVATE CHILD CARE COUNCIL AND PROVIDE FOR ITS
MEMBERSHIP, DUTIES, AND FUNCTIONS; TO PROVIDE FOR A DAY CARE JOINT
UNDERWRITING ASSOCIATION; TO AMEND SECTION 20-7-2730, RELATING TO
CHILD DAY CARE FACILITIES, THE ISSUANCE OF A LICENSE, AND PRIVATE
CENTERS AND HOMES, SO AS TO PROVIDE THAT ANY PERSON WHO HAS BEEN
CONVICTED OF CERTAIN ENUMERATED CRIMES WHO APPLIES FOR EMPLOYMENT
WITH, OR IS EMPLOYED BY, A FACILITY IS GUILTY OF A MISDEMEANOR, AND
TO PROVIDE A PENALTY, TO AMEND SECTION 20-7-2970, RELATING TO
PENALTIES AGAINST CHURCH OR RELIGIOUS DAY CARE CENTERS, SO AS TO
INCREASE THE MAXIMUM FINE FOR VIOLATING THE PROVISIONS OF SECTIONS
20-7-2910 THROUGH 20-7-2970; TO AMEND SECTION 20-7-3090, RELATING
TO PENALTIES FOR VIOLATING CERTAIN PROVISIONS OF THE CHILDREN'S
CODE, SO AS TO INCREASE THE MAXIMUM AMOUNT OF THE FINE PROVIDED FOR
IN THE SECTION; TO AMEND THE 1976 CODE BY ADDING SECTION 20-7-3095
SO AS TO MAKE IT A SEPARATE CRIMINAL OFFENSE, AND A FELONY, FOR ANY
PERSON TO UNLAWFULLY COMMIT ANY OF THE OFFENSES LISTED IN CHAPTER
3, TITLE 16, (OFFENSES AGAINST THE PERSON), ANY CRIME LISTED IN
CHAPTER 15, TITLE 16, (OFFENSES AGAINST MORALITY AND DECENCY), OR
THE CRIME OF CONTRIBUTING TO THE DELINQUENCY OF A MINOR CONTAINED
IN SECTION 16-17-490 WHILE WITHIN A RADIUS OF ONE HUNDRED YARDS OF
THE GROUNDS OF ANY PUBLIC OR PRIVATE CHILD DAY CARE FACILITY; AND
TO PROVIDE A PENALTY; AND TO AMEND SECTION 16-1-10, AS AMENDED,
RELATING TO CRIMES CLASSIFIED AS FELONIES, SO AS TO INCLUDE THE
CRIME IN SECTION 20-7-3095.
SUBDIVISION I
Citation of Section
Subsection 1. This section of Part II is known and may be cited as
the "South Carolina Initiative for Child Care Act".
SUBDIVISION II
Tax Credits
Subsection 2. Article 10, Chapter 7, Title 12 of the 1976 Code is
amended by adding:
"Section 12-7-1260. (A) A taxpayer who employs persons in
any capacity may claim as a credit against his state income tax,
bank tax, or premium tax liability an amount equal to fifty percent
of his capital expenditures but no more than one hundred thousand
dollars for costs incurred in establishing a child care program for
his employees. A credit claimed under this section, but not used
or available for use in a taxable year, may be carried forward for
the next ten taxable years from the close of the tax year in which
the expenditures are made until the amount of the credit is taken.
(B) For purposes of this section, 'expenditures for costs
incurred in establishing a child care program' includes, but is not
limited to, expenditures, including mortgage or lease payments, for
playground and classroom equipment, kitchen appliances, cooking
equipment, and real property, including improvements. The program
and operation of the program must meet the licensing, registration,
or certification standards prescribed by law.
(C) The taxpayer under subsection (A) also is allowed as a credit
against his state income tax, bank tax, or premium tax liability an
amount not exceeding fifty percent of the child care payments
incurred by the taxpayer to operate a child care program for his
employees, or made directly to licensed or registered independent
child care facilities in the name of and for the benefit of an
employee of the taxpayer, which employee's children are kept at the
facility during the employee's working hours. The payment may not
exceed the amount charged to other children of like age and
abilities of individuals not employed by the taxpayer. The credits
allowed by this subsection may not exceed a maximum of three
thousand dollars for each employee.
Where an employee chooses to utilize the provisions of this
subsection which authorizes direct payments to licensed child care
facilities not operated by the employer, expenses attendant to the
organization and administration of such a direct payment program
incurred in the first year are also considered start-up expenses or
expenditures for establishing a child care program for purposes of
the fifty percent tax credit for start-up expenses authorized by
subsection (A).
(D) For purposes of the credits allowed by subsection (B), the
taxpayer is required to retain information concerning the child
care facility's federal identification number, license or
registration number, payment amount, and in whose name and for
whose benefit the payments were made. In addition, a taxpayer is
allowed to include in the amount of the payment for calculation of
the credit any administrative cost associated with payment to
licensed or registered independent child care facilities not to
exceed two percent.
(E) The credits established by this section taken in any one tax
year are also limited to an amount not greater than fifty percent
of a taxpayer's state income tax, bank tax, or premium tax
liability for that year."
Subsection 2A. The credits allowed by Section 12-7-1260 of the
1976 Code shall only apply to expenditures made after July 1, 1989.
However, if the funds in Part IV provided for "Child Care
Initiatives" are not available, the credits allowed in Section
12-7-1260 apply to expenditures made after July 1, 1990.
SUBDIVISION III
Child Development Services
Subsection 3. The Health and Human Services Finance Commission
shall establish child development services in the following
counties: Allendale, Bamberg, Barnwell, Calhoun, Cherokee,
Chester, Chesterfield, Fairfield, Jasper, Lexington, Newberry, and
Orangeburg. The services established in each county must provide
at least thirty slots for the children of that county.
Subsection 4. The Health and Human Services Finance Commission
shall expand existing child development services in the following
counties: Beaufort, Charleston, Florence, Greenville, Hampton,
and Richland. The services in each county must be expanded to
provide at least twenty new slots but no more than sixty new slots
for the children of each county.
Subsection 5. The establishment and expansion of the child
development services mandated by Subsections 3 and 4 of this
section of Part II must be accomplished within the limits of the
appropriations provided by the General Assembly in the annual
General Appropriations Act for this purpose and in accordance with
Health and Human Services Finance Commission policies for child
development services funded through Title XX.
SUBDIVISION IV
Latchkey Program
Subsection 6. Section 59-19-90 of the 1976 Code is amending by
adding at the end the following appropriately number item:
"( ) Provide school-age child care program or facilities
therefor. Provide:
(a) a school-age child care program for children aged five
through fourteen years that operates before or after the school
day, or both, and during periods when school is not in session;
(b) a school-age child care program that operates during
periods when school is in session for students who are enrolled in
a half-day kindergarten program; or
(c) classrooms, other space, or both, in a school for use by a
not-for-profit organization that is operating a school-age child
care program before or after the school day, or both, and during
periods when school is not in session for children aged five
through fourteen years.
All latchkey programs operating pursuant to this item must be
licensed."
Subsection 7. Article 1, Chapter 19, Title 59 of the 1976 Code is
amended by adding:
"Section 59-19-125. Each district board of trustees may
lease any school property for a rental which the board considers
reasonable or permit the free use of school property for:
(1) civic or public purposes; or
(2) the operation of a school-age child care program for
children aged five through fourteen years that operates before or
after the school day, or both, and during periods when school is
not in session, if the property is not needed for school purposes.
Under this section the board may enter into a long-term lease with
a not-for-profit corporation, community service organization, or
other governmental entity, if the corporation, organization, or
other governmental entity will use the property to be leased for
civic or public purposes or for a school-age child care program.
However, if the property subject to a long-term lease is being paid
for from money in the district's debt service fund, then all
proceeds from the long-term lease must be deposited in that school
district's debt service fund so long as the property has not been
paid for."
SUBDIVISION V
Public/Private Child Care Council
Subsection 8. There is established the South Carolina
Public/Private Child Care Council.
Subsection 9. (A) The Council consists of the following members:
(1) The Governor shall appoint eight members to the council and
the Lieutenant Governor shall appoint seven members to the council.
(2) The Commissioner of the Department of Social Services shall
appoint one member from the Department of Social Services.
(3) The Commissioner of the Department of Health and
Environment Control shall appoint one member from the Department's
Division of Children's Health.
(4) The Speaker of the House of Representatives and the
President of the Senate shall each appoint one member of the
council from their respective bodies.
(B) In addition to the above members of the council, the
following are also ex officio members of the council:
(1) the director of the Division of Human Resource Management
or his designee;
(2) the chairman of the South Carolina Tax Commission or his
designee;
(3) the chairman of the Joint Legislative Committee on
Children, or his designee;
(4) the president of the South Carolina Chamber of Commerce or
his designee;
(5) the director of the Health and Human Services Finance
Commission or his designee.
(C) Each member of the council shall serve for a term to expire
on December 31, 1990, which is the expiration date of the council.
Any vacancy must be filled for the remainder of the unexpired term
in the same manner of original appointment.
Subsection 10. The duties of the South Carolina Public/Private
Child Care Council are, but are not limited to:
(1) meet at least four times each year to establish objectives,
review progress, and discuss policy and program issues jointly
affecting the public and private sectors;
(2) develop and disseminate information on employer support for
child care which includes options, costs, and benefits of that
support;
(3) review and recommend financial incentives to encourage
employer support of child care;
(4) study the feasibility of promoting the use of the State's
school buildings as centers for after school child care;
(5) review the availability of public or private no or low
interest loans for capital investment in child care;
(6) review the Capitol Complex needs assessment and make
recommendations necessary to address the child care needs of
Capitol Complex employees;
(7) review the feasibility and affordability of liability
insurance for child care providers;
(8) review such other matters as considered appropriate by the
council and make appropriate recommendations where necessary.
Subsection 11. The senatorial appointee shall serve as chairman of
the council for its initial meeting. The council shall then select
a permanent chairman as well as those other officers it considers
necessary. The council shall meet at least quarterly upon call of
the chairman.
Subsection 12. The members of the council shall receive the usual
mileage, subsistence, and per diem paid to members of state boards,
commissions, and committees. These expenses, as well as expenses
necessary to staff the council, must be paid from the approved
accounts of both houses.
Subsection 13. The council shall go out of existence on December
31, 1990, and terminate its activities on this date. The council
shall report its findings to the General Assembly on or before
December 31, 1990.
SUBDIVISION VI
Day Care Joint Underwriting Association
Subsection 14. The General Assembly declares that there exists the
potential for a day care liability insurance crisis for day care
owners and operators in this State because of the high cost of
liability insurance and a want of competition. These conditions
could result in a situation in which liability insurance would not
be available to day care owners and operators in this State. The
public interest requires that a contingency program for providing
day care liability insurance be enacted and that the Insurance
Commission of South Carolina activate this program upon finding
that an emergency exists because insurance is not available through
normal channels or is not available on a reasonable basis because
of lack of competition or otherwise.
Subsection 15. As used in this subdivision:
(1) "Association" means a joint underwriting
association established pursuant to this subdivision.
(2) "Day care liability insurance" means insurance
protection against the day care liability of the insured and
against loss, damage, or expense incident to a claim arising out of
day care service to a person as the result of negligence in
rendering or failing to render day care service.
(3) "Net direct premiums" means gross direct premiums
written on bodily injury liability insurance, other than automobile
liability insurance, homeowners liability insurance, and farmowners
liability insurance, including the liability component of multiple
peril package policies, as computed by the Chief Insurance
Commissioner less return premiums or the unused or unabsorbed
portions of premium deposits.
Subsection 16. (A) A joint underwriting association is created,
consisting of all insurers authorized to write within this State,
on a direct basis, bodily injury liability insurance, other than
automobile bodily injury liability insurance, homeowners liability
insurance, and farmowners liability insurance, including insurers
covering such peril in multiple peril package policies. Every such
insurer is and must remain a member of the association as a
condition of its authority to continue to transact this kind of
insurance in this State.
(B) The purpose of the association is to provide day care
liability insurance on a self-supporting basis to the fullest
extent possible.
(C) The association is activated when the commission finds and
declares the existence of an emergency because of the
unavailability of day care liability insurance or the
unavailability of such insurance on a reasonable basis through
normal channels.
Subsection 17. The association has the power on behalf of its
members to:
(1) issue, or cause to be issued, policies of insurance to
applicants including incidental coverages such as, but not limited
to, premises or operations liability coverage on the premises where
services are rendered, all subject to limits of liability as
specified in the plan of operation but not to exceed five million
dollars for all claimants under one policy in any one year;
(2) underwrite day care liability insurance and to adjust and pay
losses with respect thereto or to appoint service companies to
perform those functions;
(3) cede and assume reinsurance.
Subsection 18. (A) Not less than thirty nor more than ninety days
after the effective date of this subdivision the commissioner,
after consultation with representatives of the public, day care
owners and operators, and other affected individuals and
organizations, shall promulgate a plan of operation consistent with
this subdivision. The plan of operation becomes effective and
operative no later than thirty days after the declaration of an
emergency by the commission.
(B) The plan of operation shall provide for economic, fair, and
nondiscriminatory administration and for the prompt and efficient
provision of day care liability insurance and may contain other
provisions including, but not limited to, preliminary assessment of
all members for initial expenses necessary to commence operations,
establishment of necessary facilities, management of the
association, assessment of the members to defray losses and
expenses, commission arrangements, reasonable and objective
underwriting standards, acceptance and cession of reinsurance,
appointment of servicing carriers, and procedures for determining
amounts of insurance to be provided by the association.
(C) The plan of operation shall provide that any profit achieved
by the association must be added to the reserves of the association
or returned to the policyholders as a dividend.
(D) Amendments to the plan of operation may be made by the
directors of the association with the approval of the commissioner
or must be made at the direction of the commissioner after proper
notice and public hearing.
Subsection 19. Upon the activation of the plan of operation, a day
care owner or operator licensed in this State is entitled to apply
to the association for coverage. The application may be made on
behalf of the applicant by a licensed agent or broker authorized in
writing by the applicant.
If the association determines that the applicant meets the
underwriting standards of the association as set forth in the
approved plan of operation and there is no unpaid, uncontested
premium due from the applicant for any prior insurance of the same
kind, the association, upon receipt of the premium, or a portion of
it as prescribed by the plan of operation, shall cause to be issued
a policy of day care liability insurance for one year.
The rates, rating plans, rating rules, rating classifications,
territories, and policy forms applicable to insurance written by
the association and the statistical and experience data relating
thereto are subject to this subdivision and to those provisions of
Chapter 73, Title 38, Code of Laws of South Carolina, 1976, which
are not inconsistent with this subdivision.
Subsection 20. The commissioner shall obtain complete statistical
data in respect to day care liability losses and reparation costs
as well as all other costs or expenses which underlie or are
related to day care liability insurance. The commissioner shall
promulgate any statistical plan he considers necessary for the
purpose of gathering data referable to loss and loss adjustment
expense experience and other expense experience. When the
statistical plan is promulgated all members of the association
shall adopt and use it. The commissioner also shall obtain
statistical data in respect to the costs of compensating victims of
day care liability. The commissioner may require loss, claim, or
expense data from any person obtaining insurance through the
association. This information or data is confidential.
Subsection 21. In structuring rates for day care liability
insurance and determining the profit or loss of the association in
respect to the insurance, consideration must be given by the
commissioner to all investment income.
Subsection 22. Within a time that the commissioner directs, the
association shall submit, for the commissioner's approval, an
initial filing, in proper form, of policy forms, classifications,
rates, rating plans, and rating rules applicable to day care
liability insurance to be written by the association. If the
commissioner disapproves the initial filing, in whole or in part,
the association shall amend the filing, in whole or in part, in
accordance with the direction of the commissioner. If the
commissioner is unable to approve the filing or amended filing,
within the time specified, he shall promulgate the policy forms,
classifications, rates, rating plans, and rules to be used by the
association in making rates for and writing the insurance.
Subsection 23. (A) The commissioner shall specify whether policy
forms and the rate structure must be on a "claims-made"
or "occurrence" basis, and coverage may be provided by
the association only on the basis specified by the commissioner.
The commissioner shall specify the claims-made basis only if the
contract makes provision for residual occurrence coverage upon the
retirement, death, disability, or removal from the State of the
insured. Provision may be made for a premium charge allocable to
any residual occurrence coverage, and the premium charges for the
residual coverage must be segregated and separately maintained for
such purpose which may include the reinsurance of all or part of
that portion of the risk.
(B) The policy may not contain a limitation in relation to the
existing law in tort as provided by the statute of limitations of
this State.
(C) The policy form, whether on a claims-made or occurrence
basis, may not require as a condition precedent to settlement or
compromise of a claim the consent or acquiescence of the insured.
However, the settlement or compromise is not considered an
admission of fault or wrongdoing by the insured.
(D) The premium rate charged for either or both claims-made or
occurrence coverage must be at rates established on an actuarially
sound basis, including consideration of trends in the frequency and
severity of losses and must be calculated to be self-supporting.
Subsection 24. The association may provide a rate increase or
assessment subject to the commissioner's approval.
Subsection 25. A deficit sustained by the association in a year
must be recouped, pursuant to the plan of operation and the rating
plan then in effect, by one or both of the following procedures:
(1) an assessment upon the policyholders, which may not exceed
one additional annual premium at the then current rate;
(2) a rate increase applicable prospectively.
Subsection 26. After the initial year of operation, rates, rating
plans, and rating rules, and any provision for recoupment through
policyholder assessment or premium rate increase must be based upon
the association's loss and expense experience and investment
income, together with any other information based upon this
experience and income as the commissioner considers appropriate.
The resultant premium rates must be on a actuarially sound basis
and must be calculated to be self-supporting.
If sufficient funds are not available for the sound financial
operation of the association, pending recoupment as provided in
Subsection 25 of this subdivision, all members, on a temporary
basis, shall contribute to the financial requirements of the
association in the manner provided in Subsection 27 of this
subdivision. A contribution must be reimbursed to the members
following recoupment as provided in Subsection 25 of this
subdivision.
Subsection 27. All insurers which are members of the association
shall participate in its writings, expenses, profits, and losses in
the proportion that the net direct premium of each member,
excluding that portion of premiums attributable to the operation of
the association, written during the preceding calendar year bear to
the aggregate net direct premiums written in this State by all
members of the association. Each insurer's participation in the
association must be determined annually on the basis of the net
direct premiums written during the preceding calendar year, as
reported in the annual statements and other reports filed by the
insurer with the commissioner. No member may be obligated in any
one year to reimburse the association because of its proportionate
share in the deficit from operations of the association in that
year in excess of one percent of its surplus to policyholders and
the aggregate amount not so reimbursed must be reallocated among
the remaining members in accordance with the method of determining
participation prescribed in this subsection after excluding from
the computation the total net direct premiums of all members not
sharing in the excess deficit. If the deficit from operations
allocated to all members of the association in a calendar year
exceeds one percent of their respective surplus to policyholders,
the amount of the deficit must be allocated to each member in
accordance with the method of determining participation prescribed
in this subsection.
Subsection 28. Every member of the association is bound by the
approved plan of operation of the association and the rules of the
board of directors of the association.
Subsection 29. (A) If the authority of an insurer to transact
bodily injury liability insurance, other than automobile,
homeowners, or farmowners, in this State terminates for any reason,
its obligations as a member of the association continue until all
its obligations are fulfilled and the commissioner has so found and
certified to the board of directors.
(B) If a member insurer merges into or consolidates with another
insurer authorized to transact insurance in this State or another
insurer authorized to transact insurance in this State has
reinsured the insurer's entire general liability business in this
State, both the insurer and its successor or assuming reinsurer, as
the case may be, are liable for the insurer's obligations to the
association.
(C) An unsatisfied net liability of an insolvent member of the
association must be assumed by and apportioned among the remaining
members in the same manner in which assessments or gain and loss
are apportioned and the association shall acquire and have all
rights and remedies allowed by law in behalf of the remaining
members against the estate or funds of the insolvent insurer for
funds due the association.
Subsection 30. The association is governed by a board of seven
directors, one of whom is appointed by the Governor, with the
advice and consent of the Senate, to represent the general public
and three of whom are day care owners or operators appointed by the
Governor. Three directors are elected by cumulative voting by
members of the association, whose votes in the election must be
weighed in accordance with each member's net direct premiums
written during the preceding calendar year. The approved plan of
operation of the association may make provision for combining
insurers under common ownership or management into groups for
voting, assessment, and all other purposes and may provide that not
more than one of the officers or employees of the group may serve
as a director at any one time. The insurer representatives of the
board of directors must be elected at a meeting of the members or
their authorized representatives, which must be held at a time and
place designated by the commissioner. The commissioner is chairman
of the board of directors, ex officio, and he, or his designee,
must preside at all meetings of the board but has no vote except in
the case of a tie.
Subsection 31. An applicant for insurance through the association,
a person insured pursuant to this subdivision, or his
representative, or an insurer adversely affected, or claiming to be
adversely affected, by a ruling, action, or decision by or on
behalf of the association, may appeal to the commission within
thirty days after the ruling, action, or decision.
Subsection 32. The association shall file in the office of the
commissioner annually by March first a statement containing
information with respect to its transactions, condition,
operations, and affairs during the preceding year. The statement
must contain information prescribed by the commissioner and must be
in the form he directs.
The commissioner, at any reasonable time, may require the
association to furnish additional information concerning its
transactions, condition, or any matter connected therewith
considered to be material and of assistance in evaluating the
scope, operations, and experience of the association.
Subsection 33. The commissioner shall make an examination into the
financial condition and affairs of the association at least
annually and shall file a report thereon with the commission, the
Governor, and the General Assembly. The expenses of the
examination must be paid by the association.
SUBDIVISION VII
Increased Criminal Penalties
Subsection 34. Section 20-7-2730 of the 1976 Code is amended to
read:
"Section 20-7-2730. a. Application for license must be made
on forms supplied by the department and in the manner it
prescribes.
b. Before issuing a license the department shall conduct an
investigation of the applicant and the proposed plan of care for
children and for operating a private child day care center or group
day care home. If the results of the investigation verify that the
provisions of this subarticle and the applicable regulations
promulgated by the department are satisfied, a license must be
issued. The applicant shall cooperate with the investigation and
related inspections by providing access to the physical plant,
records, excluding financial records, and staff. Failure to
comply with the regulations promulgated by the department within
the time period specified in this subarticle, provided that
adequate notification of deficiencies has been made, is a ground
for denial of application. The investigation and inspections may
involve consideration of any facts, conditions, or circumstances
relevant to the operation of the child day care center or group day
care home, including references and other information about the
character and quality of the personnel.
c. Each license must be conditioned by stating clearly the name
and address of the licensee, the address of the child day care
center or group day care home, and the number of children who may
be served.
d. Failure of the department, except as provided in Section
20-7-3070, to approve or deny an application within ninety days
shall result in the granting of a provisional license.
No license may be issued to an operator who has been convicted of
a crime listed in Chapter 3 of Title 16, Offenses Against the
Person, a crime listed in Chapter 15 of Title 16, Offenses Against
Morality and Decency, and for the crime of contributing to the
delinquency of a minor, contained in Section 16-17-490. No
facility may employ or engage the services of a caregiver who has
been convicted of one of the crimes listed in this paragraph. A
person who has been convicted of one of the crimes listed in this
paragraph who applies for employment with, or is employed by, a
facility is guilty of a misdemeanor and, upon conviction, must be
punished by a fine not exceeding five thousand dollars or
imprisonment not exceeding one year, or both. The State Department
of Social Services may charge the licensee a fee for the cost of
obtaining criminal history conviction records from the South
Carolina Law Enforcement Division."
Subsection 35. Section 20-7-2970 of the 1976 Code is amended to
read:
"Section 20-7-2970. An operator violating the provisions of
Sections 20-7-2910 through 20-7-2970 is guilty of a misdemeanor
and, upon conviction, must be punished by a fine not exceeding one
thousand five hundred dollars or imprisonment not exceeding six
months, or both."
Subsection 36. Section 20-7-3090 of the 1976 Code is amended to
read:
"Section 20-7-3090. A person violating the provisions of
this subarticle is guilty of a misdemeanor and, upon conviction,
must be punished by a fine not exceeding one thousand five hundred
dollars or imprisonment not exceeding six months, or both."
Subsection 37. Subarticle 11, Article 13, Chapter 7, Title 20 of
the 1976 Code is amending by adding:
"Section 20-7-3095. It is a separate criminal offense, and
a felony, for a person to unlawfully commit any of the offenses
listed in Chapter 3 of Title 16, Offenses Against the Person, a
crime listed in Chapter 15 of Title 16, Offenses Against Morality
and Decency, or the crime of contributing to the delinquency of a
minor contained in Section 16-17-490 while within a radius of one
hundred yards of the grounds of a public or private child day care
facility. A person who commits this offense must, upon conviction,
be punished by a fine not to exceed ten thousand dollars or
imprisonment not to exceed ten years or both, in addition to any
other penalty imposed by law and not in lieu of any other
penalty."
Subsection 38. The crime in Section 20-7-3095 of the 1976 Code,
as contained in Subsection 37 of this section of Part II, relating
to unlawfully committing an offense listed in Chapter 3 of Title
16, Offenses Against the Person, a crime listed in Chapter 15 of
Title 16, Offenses Against Morality and Decency, or the crime of
contributing to the delinquency of a minor contained in Section
16-17-490 while within a radius of one hundred yards of the grounds
of any public or private child day care facility, is added to the
list of crimes classified as felonies in Section 16-1-10.
SECTION 44
TO AMEND THE 1976 CODE BY ADDING SECTION 59-101-340 SO AS TO
ALLOCATE TWENTY-FIVE PERCENT OF FUNDS APPROPRIATED FOR THE
"CUTTING EDGE: RESEARCH INVESTMENT INITIATIVE" TO THE
STATE'S SENIOR PUBLIC COLLEGES, AND TO PROVIDE THAT IF THE NUMBER
OF QUALITY PROPOSALS FOR THESE FUNDS SUBMITTED BY THE SENIOR
COLLEGES DOES NOT REQUIRE THE FULL ALLOCATION, THE BALANCE OF THE
ALLOCATION MUST BE DISTRIBUTED BY THE COMMISSION ON HIGHER
EDUCATION TO THE STATE'S PUBLIC UNIVERSITIES.
Chapter 101, Title 59 of the 1976 Code is amended by adding:
"Section 59-101-340. Twenty-five percent of funds
appropriated by the General Assembly for the 'Cutting Edge:
Research Investment Initiative' must be allocated to the state's
senior public colleges. If the number of quality proposals for
funding submitted by the senior colleges does not require the full
allocation, the balance of the allocation must be distributed by
the Commission on Higher Education to the state's public
universities."
SECTION 45
TO AMEND SECTION 12-27-1320 OF THE 1976 CODE, RELATING TO GOALS OR
SET-ASIDES FOR BUSINESSES OWNED AND CONTROLLED BY SOCIALLY AND
ECONOMICALLY DISADVANTAGED INDIVIDUALS AND DISADVANTAGED FEMALES
SO
AS TO, AMONG OTHER THINGS, PROVIDE FOR THE APPLICATION OF THIS
SECTION TO PROJECTS EXCEEDING SEVEN HUNDRED FIFTY THOUSAND DOLLARS
AND PROVIDE REQUIREMENTS FOR PARTICIPATION FOR FIRMS, CORPORATIONS,
AND INDIVIDUALS.
A. Whereas, in South Carolina we are indeed grateful for our
country's treasured free enterprise system. We know that the
foundation and great benefit of our free enterprise system are the
opportunity and individual freedom it provides each citizen to
pursue the great "American Dream" to his or her fullest
potential; and
Whereas, our national and state history teaches us that not all
citizens have been provided a fair opportunity to fully participate
in our treasured economic system. Past discrimination based on
race and gender has prevented many citizens from participating,
achieving, and developing their fullest potential and talents; and
Whereas, leaders of our State recognized this problem over a
decade ago and as a result implemented programs and policies
including race and gender-neutral efforts and specific set-aside
programs in an attempt to eliminate these discriminating barriers;
and
Whereas, in 1979, the General Assembly created, by joint
resolution, the Small Business Development Center Consortium as a
nonracially oriented technical assistance entity. Also in 1979,
the Joint Legislative Committee on Small Business, created in 1978,
reported that firms owned by minority persons "have been
historically restricted from full participation in our free
enterprise system to a degree disproportionate to other
businesses"; and
Whereas, in 1981, the State enacted a consolidated procurement
code and, pursuant to numerous hearings which took place under the
direction of the State Reorganization Commission and the review of
the American Bar Association, enacted Section 11-35-5210(1) which
again confirmed a finding by the General Assembly that
discrimination had resulted in a lack of participation by
minorities in the state procurement system. In reference to these
findings, state procurement officers were directed to initiate
certain programs to include and involve minorities in the
procurement system; and
Whereas, several recent studies by the Office of Small and
Minority Business Assistance reveal that a pattern of
discrimination against, and minimal participation of, minority and
female-owned businesses in the state's procurement system still
exists. The data for fiscal years 1981-82, 1982-83, and 1983-84
show participation rates for minority-owned firms at less than one
percent; and
Whereas, the South Carolina Legislative Audit Council found in
1983-84 that minority-owned firms received only a mere .01 percent
of the state's contract dollars for goods, services, and building
renovations and construction. A public hearing on October 12,
1988, revealed a continuing lack of participation in the awarding
of contracts despite a race and gender-specific set-aside program
mandated by a proviso in the 1988 General Appropriations Act
(Section 126.25); and
Whereas, the state's finding of a pattern of race and gender
discrimination over a ten-year period, despite numerous attempts to
create more equitable patterns, is evidence that additional
legislative action is necessary to cure and resolve this long and
historical problem in our State; and
Whereas, the purpose of this legislation is to remedy historic
patterns of discrimination against minorities and women in the
awarding of state contracts. It is intended that these provisions
be applied until future findings conclude that the historical
barriers to participation of minorities and women have been
eliminated. Now, therefore,
B. Section 12-27-1320 of the 1976 Code, as added by Act 197 of
1987, is amended to read:
"Section 12-27-1320. (A) Of total state source highway
funds expended in a fiscal year on construction contracts, the
Department of Highways and Public Transportation, through the use
of goals or set-asides, provided that goals be used only on
projects exceeding seven hundred fifty thousand dollars, shall
ensure not less than: (1) five percent are expended with small
business concerns owned and controlled by socially and economically
disadvantaged ethnic minorities; and
(2) five percent are expended with firms owned and controlled by
disadvantaged females (WBE'S).
The department shall prequalify eligible firms under this section
and shall give at least thirty days' notice to certified firms of
contracts to be let. No firm may participate in the state source
highway construction contract set-asides for more than nine years.
No firm, corporation, or partnership may be prequalified when more
than twenty-five percent interest is earned by a member or a spouse
of a member, stockholder, or partner that has earned any interest
in a firm, corporation, or partnership that has been certified or
participated in the awarding of state contracts pursuant to this
section for more than nine years. No person may own stock or any
other interest in a firm, corporation, or partnership if that
person owns more than twenty-five percent interest in another firm,
corporation, or partnership already certified or participating in
the awarding of state contracts pursuant to this section or when
the person owns more than twenty-five percent in a firm,
corporation, or partnership that has previously participated in the
highway construction set-asides for more than nine years.
(B) If no socially and economically disadvantaged ethnic minority
or WBE firms certified pursuant to this section are available to
perform a contract, the department shall verify and record this
fact, and the verification must be preserved in department records.
To the extent a goal or set-aside for a particular category cannot
be met, the unused portion of a goal or set-aside must be added to
the goal or set-aside of the other category if the appropriate
category firm is available.
(C) To facilitate implementation of this section, the department
may waive or guarantee bonding requirements for contracts let
pursuant to this section with estimated construction costs not
exceeding two hundred fifty thousand dollars a contract, and any
contract set-aside and awarded to any socially and economically
disadvantaged ethnic minority or WBE contractor without bonding
shall provide expressly that termination of the contract for
default of the contractor renders the contractor ineligible for any
further department nonbonded set-aside contracts for a minimum of
two years from the date of the notice.
(D) In awarding any contract pursuant to this section, preference
must be given to an otherwise eligible South Carolina contractor
submitting a responsible bid not exceeding an otherwise eligible
out-of-state contractor's low bid by two and one-half percent.
(E) Any socially and economically disadvantaged ethnic minority
or WBE acting as a prime contractor, in letting subcontracts, shall
comply with the applicable provisions of this section.
(F) The department shall make available technical and support
services for socially and economically disadvantaged ethnic
minorities and WBE'S for not less than one hundred thousand
dollars.
(G) Procurements and contracts made pursuant to Section 106(c) of
the Federal Surface Transportation Assistance Act of 1987
(STAA-1987; P.L. 100-17, Section 106(c)) unclassified are subject
to the provisions of Sections 11-35-1210(2), 11-35-1220,
11-35-1230, and 11-35-5230.
(H) Any contractor awarded work for which the State guarantees
bond shall pay to the State an amount equal to the premium of the
bond if the contractor had purchased the bond from a surety
company.
(I) If any part or provision of this section is declared to be
unconstitutional or unenforceable by a court of competent
jurisdiction of this State, the court's decision, nevertheless,
shall have no effect on the constitutionality, validity, and
enforceability of the other parts and provisions of this section
which are considered severable.
(J) The department shall promulgate and implement regulations to
administer the provisions of this section."
SECTION 46
TO AMEND SECTION 51-13-810 OF THE 1976 CODE, RELATING TO THE
PATRIOT'S POINT DEVELOPMENT AUTHORITY AND REVENUE BONDS SO AS TO
REQUIRE BUDGET AND CONTROL BOARD APPROVAL PRIOR TO THE ISSUANCE OF
ANY BONDS BY THE AUTHORITY.
Section 51-13-810 of the 1976 Code is amended to read:
"Section 51-13-810. As a means of raising the funds needed
from time to time in the acquisition, construction, equipment,
maintenance, and operation of any facility, building, structure or
any other matter or thing which the authority is herein authorized
to acquire, construct, equip, maintain, or operate, all or any of
them, the authority may issue bonds, upon the approval of the
Budget and Control Board, payable both as to principal and interest
from the revenues to be derived from admissions to and charges for
the operation of all or any part of its properties and facilities,
and the powers and authority granted to counties, cities, school
districts, and other political subdivisions of the State are
extended to and made available to the authority. All revenue bonds
issued by the authority to obtain funds for the acquisition,
construction, equipment, maintenance, and operation of its
properties and facilities must be issued in accordance with the
provisions of Sections 6-21-10 to 6-21-570, upon approval of the
Budget and Control Board, and all conditions, restrictions, and
limitations imposed by these sections must be observed by the
authority in the issuance of the bonds, except as follows:
(1) A pledge of the net revenues derived from the operation of
its properties and facilities, all or any of them, rather than its
gross revenues, may be made; and
(2) Free service, in the discretion of the authority, may be
afforded to the State of South Carolina or the United States of
America, or any agency, political subdivision, department,
corporation, or instrumentality thereof, by any property or
facility of the authority to acquire, construct, equip, maintain,
and operate which funds were obtained from the revenue bonds
purchased and held by a state or federal agency, as long as the
free service is with the consent and at the request of the state or
federal agency then holding the whole of the revenue bonds."
SECTION 47
TO ALLOW A MANUFACTURING COMPANY WHICH, DURING 1988, ACQUIRED AN
EXISTING MANUFACTURING COMPANY IN A COUNTY WITH A POPULATION OF
LESS THAN THIRTY-NINE THOUSAND ACCORDING TO THE 1980 CENSUS TO
ELECT TO MAINTAIN THE TAX BASIS FOR PERSONAL PROPERTY OF THE
ACQUIRED COMPANY.
Notwithstanding the provisions of Section 12-37-930 of the 1976
Code, a manufacturing company which, in 1988, acquired an existing
manufacturing company may elect to maintain the tax basis for
personal property of the acquired company if the acquired
manufacturing company is located in a county with a population of
less than thirty-nine thousand according to the 1980 United States
Census.
SECTION 48
TO AMEND SECTION 12-37-220, AS AMENDED, OF THE 1976 CODE, RELATING
TO PROPERTY TAX EXEMPTIONS, SO AS TO CLARIFY THAT THE EXEMPTION
ALLOWED FOR NEW OR EXPANDED CORPORATE HEADQUARTERS AND
DISTRIBUTION
FACILITIES DOES NOT APPLY TO AD VALOREM TAXES FOR SCHOOL PURPOSES,
AND TO AMEND ACT 666 OF 1988, RELATING TO TAX BENEFITS FOR NEW OR
EXPANDED CORPORATE HEADQUARTERS, SO AS TO PROVIDE THAT THE INCOME
TAX CREDIT ALLOWED FOR VARIOUS EXPENSES OF ESTABLISHING OR
EXPANDING A CORPORATE HEADQUARTERS MAY BE CARRIED FORWARD FOR
FIFTEEN YEARS IF THE HEADQUARTERS MEETS ADDITIONAL JOB CREATION
REQUIREMENTS AND TO PROVIDE ADDITIONAL CREDITS FOR PROPERTY USED
FOR CORPORATE HEADQUARTERS FUNCTIONS, OR RESEARCH AND
DEVELOPMENT
FUNCTIONS FOR CORPORATIONS MEETING THE ADDITIONAL JOB CREATION
REQUIREMENTS.
A. The first paragraph of Section 12-37-220B(32) of the 1976 Code,
as added by Act 666 of 1988, is amended to read:
"All new corporate headquarters, corporate office facilities,
distribution facilities, and all additions to existing corporate
headquarters, corporate office facilities, or distribution
facilities located in South Carolina, established or constructed,
or placed in service, after June 27, 1988, are exempt from
nonschool county ad valorem taxes for a period of five years from
the time of establishment, construction, or being placed in service
if the cost of the new construction or additions is fifty thousand
dollars or more and seventy-five or more new jobs which are
full-time are created in South Carolina."
B. The first paragraph of Section 2 of Act 666 of 1988 is amended
to read:
"A corporation establishing a corporate headquarters in this
State, or adding to an existing corporate headquarters, is allowed
a credit against any tax due pursuant to Section 12-7-230 or
Section 12-19-70 of the 1976 Code in an amount equal to twenty
percent of the (1) costs incurred in the design, preparation, and
development of either establishing or expanding a corporate
headquarters, and (2) direct construction or the direct lease
costs during the first five years of operations for the corporate
headquarters. This credit applies to all qualifying costs incurred
to establish or expand a corporate headquarters which add at least
seventy-five new jobs which are full-time in South Carolina with at
least forty of the new jobs classified as staff employees, and the
cost of the new construction or additions is fifty thousand dollars
or more. This credit only applies to facilities established for
the direct use of the headquarters staff employees. This credit is
nonrefundable but an unused credit may be carried forward for ten
taxable years for all qualifying corporate headquarters costs or
fifteen years for all qualifying corporate headquarters costs in
connection with which at least one hundred fifty new full-time jobs
are created which (1) have an average cash compensation level more
than one and one-half times the per capita income of the State at
the time the jobs are filled, and (2) result in a total employee
cash compensation per South Carolina employee of more than twice
the per capita income of the State at the time the newly created
jobs are filled. In addition to the credits set forth above,
qualifying headquarters meeting these per capita income criteria
are further entitled to the credit in this section for personal
property used for corporate headquarters related functions and
services or research and development related functions and
services."
SECTION 49
TO AMEND SECTION 9-1-1140, AS AMENDED, OF THE 1976 CODE, RELATING
TO PAYMENTS TO ESTABLISH CREDITABLE SERVICE FOR PURPOSES OF THE
SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO PROVIDE THAT ACTIVE DUTY
MILITARY SERVICE PERFORMED AFTER DECEMBER 31, 1975, MAY NOT BE
CONSIDERED CREDITABLE SERVICE; AND TO AMEND SECTION 9-11-50, AS
AMENDED, RELATING TO CREDITABLE SERVICE FOR PURPOSES OF THE SOUTH
CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PROVIDE THAT
ACTIVE DUTY MILITARY SERVICE PERFORMED AFTER DECEMBER 31, 1975, MAY
NOT BE CONSIDERED CREDITABLE SERVICE.
A. The third paragraph of Section 9-1-1140 of the 1976 Code is
amended to read:
"Any member with two or more years of creditable service
shall receive additional creditable service for the period of his
military service at the rate of one year of military service for
each two years of his creditable service excluding any period of
creditable military service, as long as he was discharged or
separated from the military service under conditions other than
dishonorable, and as long as he pays to the system, by a single
payment prior to his retirement or death or by another method of
payment as may be prescribed from time to time by the board, all
payments to the system he would have been required to make for the
period to be so credited had he been employed in the position he
held immediately prior to the commencement of his military leave
during the period of the military service, together with the
regular interest which would have been credited thereon from the
date the contributions would have been made to the date of payment.
In the case of a member whose military service was rendered prior
to his employment by an employer the payments by the member, as
described in the foregoing sentence, must be determined on the
basis of his earnable compensation at the time he first became a
member of the system. The required employer contribution must be
assumed by the State. No member may receive credit for more than
six years of military service. Active military duty performed
subsequent to December 31, 1975, may not be considered creditable
service. Any former employee of the United States employed in this
State by an employer covered by the system, and who is currently a
contributing member, may elect to receive prior service credit for
service rendered as an employee of the United States upon his
paying into the system the actuarial cost as determined by the
board. The member payment may not be less than ten percent of the
earnable compensation, or the average of the three highest
consecutive fiscal years of compensation at the time of payment,
whichever is greater, for each year of service prorated for periods
of less than one year. A member who elects to receive creditable
service for federal employment may establish a portion of the
service on a one-time basis. This service may not exceed the total
creditable service, exclusive of federal service, which he would
have if he remained in service until completion of the eligibility
requirements for an unreduced service retirement allowance. In no
event may any benefits payable under the system duplicate benefits
being paid under any other retirement system for the same period of
service."
B. Section 9-11-50(4) of the 1976 Code is amended to read:
"(4) Any member with two or more years of credited service
shall receive additional credited service for the period of his
military service at the rate of one year of military service for
each two years of his credited service excluding any period of
credited military service, as long as he was discharged or
separated from the military service under conditions other than
dishonorable, and as long as he pays to the system, by a single
payment prior to his retirement or death or by another method of
payment as may be prescribed from time to time by the board, all
payments to the system he would have been required to make for the
period to be so credited had he been employed in the position he
held immediately prior to the commencement of his military leave
during the period of the military service, together with the
regular interest which would have been credited thereon from the
date the contributions would have been made to the date of payment.
In the case of a member whose military service was rendered prior
to his employment by an employer, the payments by the member, as
described in the foregoing sentence, must be determined on the
basis of his compensation at the time he first became a member of
the system. The required employer contribution must be assumed by
the State. However, no member may receive credit for more than six
years of military service. Active military duty performed
subsequent to December 31, 1975, may not be considered creditable
service."
SECTION 50
TO AMEND SECTIONS 9-1-1790 AND 9-11-90, BOTH AS AMENDED, OF THE
1976 CODE, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE
SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO INCREASE
THE AMOUNT A RETIRED MEMBER WHO RETURNS TO COVERED EMPLOYMENT
MAY
EARN WITHOUT AFFECTING HIS BENEFITS FROM NINE THOUSAND DOLLARS TO
NINE THOUSAND FIVE HUNDRED DOLLARS.
A. Section 9-1-1790 of the 1976 Code, as last amended by Section
40, Part II of Act 658 of 1988, is further amended to read:
"Section 9-1-1790. A retired member of the system may return
to employment covered by the system and earn up to nine thousand
five hundred dollars a fiscal year without affecting the monthly
retirement allowance he is receiving from the system. If the
retired member continues in service after having earned nine
thousand five hundred dollars in a fiscal year, his retirement
allowance must be discontinued during his period of service in the
remainder of the fiscal year. If the employment continues for at
least forty-eight consecutive months, the provisions of Section
9-1-1590 apply. The provisions of this section do not apply to an
employee or member of the system who has retired mandatorily
because of age pursuant to Section 9-1-1530."
B. Section 9-11-90(4) of the 1976 Code, as last amended by Section
40, Part II, Act 658 of 1988, is further amended to read:
"(4) Notwithstanding the provisions of subsections (1) and
(2) of this section, a retired member of the system may return to
employment covered by the system and earn up to nine thousand five
hundred dollars a fiscal year without affecting the monthly
retirement allowance he is receiving from the system. If the
retired member continues in service after having earned nine
thousand five hundred dollars in a fiscal year, his retirement
allowance must be discontinued during the period of service in the
remainder of the fiscal year. If the employment continues for at
least forty-eight consecutive months, the provisions of Section
9-1-1590 apply. The provisions of this section do not apply to an
employee or member of the system who has retired mandatorily
because of age pursuant to Section 9-1-1530."
SECTION 51
TO PROVIDE THAT A PERSON QUALIFIES TO BE A STUDENT AT A TRUCK
DRIVER TRAINING SCHOOL IN THIS STATE WHICH OFFERS INSTRUCTION
TOWARD A SOUTH CAROLINA CLASS THREE TRUCK DRIVER'S LICENSE IF HE
HAS A CLASS THREE LEARNER'S PERMIT ISSUED BY THIS STATE OR A CLASS
THREE LEARNER'S PERMIT OR ITS EQUIVALENT ISSUED BY HIS STATE OF
RESIDENCE IF HE IS NOT A RESIDENT OF THIS STATE, AND TO PROVIDE FOR
THE IMPACT OF THE ABOVE PROVISIONS ON STATE REVENUES.
(1) The provisions of this section are enacted by the General
Assembly for the purpose of increasing state revenues through the
attraction of out-of-state students for in-state truck drivers'
training programs and the attendant fees associated therewith.
(2) A person qualifies to be a student at a truck driver training
school in this State which offers instruction toward a South
Carolina Class Three truck driver's license if he has a Class Three
learner's permit issued by this State or a Class Three learner's
permit or its equivalent issued by his state of residence if he is
not a resident of this State.
SECTION 52
TO AMEND THE 1976 CODE BY ADDING CHAPTER 137 TO TITLE 59 SO AS TO
PROVIDE FOR EARLY INTERVENTION PROGRAMS FOR PRESCHOOL-AGE
HANDICAPPED CHILDREN; TO AMEND SECTION 59-63-20, AS AMENDED,
RELATING TO PUPILS AND AGE OF ATTENDANCE IN THE PUBLIC SCHOOLS, SO
AS TO PROVIDE THAT THREE-, FOUR-, AND FIVE-YEAR-OLD HANDICAPPED
CHILDREN MAY PARTICIPATE IN EARLY INTERVENTION PROGRAMS; AND TO
PROVIDE FOR REAUTHORIZATION OF THE PROVISIONS OF THIS SECTION.
A. Title 59 of the 1976 Code is amended by adding:
"CHAPTER 137
Early Intervention Programs
For Preschool-Age Handicapped Children
Section 59-137-10. The General Assembly recognizes that it has
long been the public policy of this State to provide free
appropriate public education for school-age handicapped children.
The General Assembly also recognizes that there is an urgent and
substantial need to enhance the development of young handicapped
children and to minimize their potential for developmental delay;
to reduce the educational costs to society, including this state's
schools, by minimizing the need for special education and related
services after preschoolers reach school age; to minimize the
likelihood of institutionalization of handicapped individuals and
maximize the potential for independent living; and to enhance the
capacity of families to meet the special needs of their young
children.
The General Assembly finds it necessary and proper to provide
appropriate special education and related services to all
handicapped children ages three, four, and five. The purpose of
this chapter is to provide for the mandatory establishment of
special education and related services for preschool-age
handicapped children at age three and to accord them the rights and
protections held by school-age handicapped children under state and
federal law.
Section 59-137-20. As used in this chapter:
(1) 'Early intervention program' means the specialized education
and related services provided in accordance with Public Law 94-142,
as amended.
(2) 'Preschool-age handicapped children' means all those children
ages three, four, and five whose developmental progress
substantially deviates from the norm to the extent that a program
of early intervention is required to ensure their adequate
preparation for school-age experiences, including those children
who meet the State Board of Education's eligibility criteria for
conditions of developmental delay, trainable mental handicap,
profound mental handicap, visual handicap, hearing handicap,
orthopedic handicap, and other health impaired and speech/language
handicaps.
(3) 'Developmental delay' means a significant deficit in the area
of cognitive ability, language ability, motor ability, perceptual
ability, or social/emotional maturity and is a handicapping
condition if diagnosed as meeting the State Board of Education's
eligibility criteria.
Section 59-137-30. (A) The State Board of Education shall
establish a statewide comprehensive system to deliver special
education and related services, including parent counseling and
training to all preschool-age handicapped children in this State.
The system must be planned, developed, and administered by the
State Department of Education under the direction of the State
Superintendent of Education. The State Board of Education shall
set forth policies and procedures for developing and implementing
interagency agreements between the state department and other
appropriate state and local agencies to:
(1) define the financial responsibility of each agency for
providing handicapped children and youth with free appropriate
education;
(2) resolve interagency disputes including procedures under
which local school districts may initiate proceedings under the
agreement in order to secure reimbursement from other agencies or
otherwise implement the provisions of the agreement;
(3) ensure a smooth transition of children receiving services
pursuant to Part H of Public Law 99-457 to the special education
and related services authorized by this chapter.
(B) The State Board of Education shall prescribe standards and
approve the procedures under which facilities are furnished and
services provided. The board shall establish evaluation and
placement procedures for handicapped students who participate in
the programs established under this chapter and determine
certification and training requirements for teachers, other
professionals, and paraprofessionals in these programs.
Section 59-137-40. The board of trustees in each school district
shall establish an early intervention program for preschool-age
handicapped children who are legal residents of the district.
Districts may contract with other districts or agencies, public or
private, which maintain approved special education programs or
provide approved related services in order to facilitate the
implementation of this responsibility. Each district shall provide
transportation for all children enrolled in early intervention
programs who request the transportation, and regulations of the
State Board of Education governing the operation of school buses
apply.
Section 59-137-50. No provision of this chapter may be construed
to limit the responsibility of state agencies currently providing
services to preschool-age handicapped children or their families.
Section 59-137-60. (A) Annually by January first each state
agency named in subsection (B) shall present to the Interagency
Coordinating Council for Early Childhood Development and Education
an approvable plan which:
(1) describes the agency's specific services to preschool-age
handicapped children and their families;
(2) supplements the special education and related services
provided under this chapter;
(3) defines the maintenance or increase of fiscal effort to
this segment of the state's population;
(4) sets forth the policies and procedures for communicating
and cooperating with local school districts in the planning and
provision of programs for preschool-age handicapped children.
(B) The state agencies with responsibility under subsection (A)
are the State Mental Retardation Department, the South Carolina
School for the Deaf and the Blind, the South Carolina Commission
for the Blind, the South Carolina Department of Health and
Environmental Control, the South Carolina Department of Mental
Health, and the State Department of Social Services.
(C) The Interagency Coordinating Council for Early Childhood
Development and Education shall submit annually by February first
a report to the Joint Legislative Committee on Children, the Senate
Education Committee, and the House Education and Public Works
Committee summarizing services provided for preschool-age
handicapped children.
(D) The Joint Legislative Committee on Children shall receive
timely reports from all agencies involved in the implementation of
programs for handicapped infants, toddlers, and preschool children
developed pursuant to Public Law 99-457 and shall provide
consultation and guidance if necessary.
Section 59-137-70. During Fiscal Year 1989-90 the State
Department of Education shall identify all financial resources
available within the State from federal, state, local, and private
sources, including the state Medicaid program, for funding the
comprehensive service system provided for in Section 59-137-30.
The state department shall use these resources to support programs
to demonstrate and evaluate different components of the service
system.
By March 1, 1990, the state department shall recommend a
comprehensive service system to the State Budget and Control Board
and the General Assembly. The department shall identify components
of the system which can be supported through existing resources and
components for which additional funds are needed.
Using all funds appropriated for this purpose, during Fiscal Year
1990-91 the state department shall implement as much of the
comprehensive service system as possible. The department shall
contract with an independent consultant to evaluate the service
system and submit a written report to the General Assembly by March
1, 1991."
B. Section 59-63-20(6) of the 1976 Code is amended to read:
"(6) Four-year-olds may attend optional child development
programs and three-year-old, four-year-old, and five-year-old
handicapped children may participate in early intervention
programs."
C. The provisions of this section adding Chapter 137 to Title 59
of the 1976 Code expire July 1, 1991, unless specifically
reauthorized by act or joint resolution of the General Assembly.
Section 59-63-20(6), as amended by this section, reverts to the
manner in which it read before being amended by this section unless
specifically reauthorized by act or joint resolution before July 1,
1991.
SECTION 53
TO AMEND THE 1976 CODE BY ADDING SECTION 12-7-441 SO AS TO PROVIDE
THAT RETIREES OF THE VARIOUS STATE RETIREMENT SYSTEMS AND OTHER
PUBLIC PENSION SYSTEMS IN THIS STATE WHO HAVE RECOVERED ALL OR A
PART OF THEIR RECOVERABLE COST IN THEIR BENEFITS FOR FEDERAL INCOME
TAX PURPOSES BEFORE JANUARY 1, 1989, ARE CONSIDERED TO HAVE
RECOVERED THOSE COSTS FOR PURPOSES OF THE STATE INCOME TAX AND TO
PROVIDE THAT FOR TAXABLE YEARS BEGINNING AFTER 1988, THE COST
RECOVERY IS THE SAME FOR PURPOSES OF BOTH THE STATE AND FEDERAL
INCOME TAX.
Article 4, Chapter 7, Title 12 of the 1976 Code is amended by
adding:
"Section 12-7-441. Retirees receiving benefits from the
various state retirement systems or any other pension plan
maintained by a political subdivision of this State who have
recovered all or a part of their recoverable costs in their
retirement benefits for federal income tax purposes before January
1, 1989, are considered to have recovered those costs for purposes
of the state income tax. For taxable years beginning after 1988,
cost recovery of these retirement benefits is the same for both
state and federal income tax purposes."
SECTION 54
TO AMEND THE 1976 CODE BY ADDING SECTION 40-6-45, SO AS TO PERMIT
THE AUCTIONEERS' COMMISSION TO WAIVE THE EXPERIENCE REQUIREMENT IN
HIRING AN EXECUTIVE DIRECTOR; AND TO AMEND SECTION 40-6-140, AS
AMENDED, RELATING TO LICENSE FEES FOR AUCTIONEERS AND AUCTION
FIRMS, SO AS TO PROVIDE THAT THE LICENSE FEES FOR AUCTIONEERS,
APPRENTICE AUCTIONEERS, AND AUCTION FIRMS ARE ONE HUNDRED FIFTY
DOLLARS.
A. Chapter 6, Title 40 of the 1976 Code is amended by adding:
"Section 40-6-45. In hiring an executive director, the
commission may waive the experience requirement provided in Section
40-6-40."
B. Section 40-6-140 of the 1976 Code, as last amended by Act 516
of 1988, is further amended to read:
"Section 40-6-140. Each person licensed as an auctioneer
shall pay an annual license fee to the commission. Funds derived
under the provisions of this chapter must be paid to the State
Treasurer who shall keep them in the manner provided for other
agencies and boards of the State. The following fees apply:
(1) examinations: fifty dollars;
(2) an apprentice license for one year: one hundred fifty
dollars;
(3) an auctioneer license for one year: one hundred fifty
dollars;
(4) a license for one year as an auction firm: one hundred fifty
dollars."
SECTION 55
TO AMEND THE 1976 CODE BY ADDING SECTION 12-9-30, SO AS TO PROVIDE
FOR BACKUP STATE INCOME TAX WITHHOLDING AND TO AMEND SECTION
12-9-310, RELATING TO STATE INCOME TAX WITHHOLDING, SO AS TO
REQUIRE WITHHOLDING ON THE PROCEEDS OF SALES OF REAL PROPERTY AND
TANGIBLE PERSONAL PROPERTY PAID TO NONRESIDENTS.
A. Article 1, Chapter 9, Title 12 of the 1976 Code is amended by
adding:
"Section 12-9-30. Backup income tax withholding is imposed
on reportable payments in the manner that backup withholding is
imposed by Section 3406 of the Internal Revenue Code of 1986,
mutatis mutandis, except that the amount to be withheld equals four
percent of the payment."
B. Section 12-9-310 of the 1976 Code is amended by adding an
appropriately numbered item to read:
"( ) Making payment to a nonresident of the proceeds of the
sale of real property and tangible personal property shall deduct
and withhold on the payments an amount equal to seven percent of
the total payment to individuals and five percent of the total
payment to corporations. The closing attorney in any transaction
governed by the provisions of this item is not responsible for the
withholding, deduction, collection or payment of the withholding
taxes required by this item."
C. This section takes effect July 1, 1989.
SECTION 56
TO AMEND THE 1976 CODE BY ADDING CHAPTER 29 TO TITLE 1 SO AS TO
PROVIDE FOR THE SOUTH CAROLINA COUNCIL ON THE HOLOCAUST.
Title 1 of the 1976 Code is amended by adding:
"CHAPTER 29
South Carolina Council on
the Holocaust
Section 1-29-10. The South Carolina Council on the Holocaust is
created. The purpose of the council, working in conjunction with
the State Department of Education, is to develop an educational
program to prevent future atrocities similar to the systematic
program of genocide of six million Jews and others by the Nazis.
The program must be designed to honor the survivors of the
Holocaust and their descendants and the South Carolinians and their
descendants who participated in the liberation of concentration
camps. The council also shall develop and establish an appropriate
program for an annual observance of the Holocaust.
Section 1-29-20. The council consists of twelve members: four
appointed by the Governor, four appointed by the President of the
Senate, and four appointed by the Speaker of the House of
Representatives. Members must be appointed for two-year terms to
begin July first of each year. A majority of the members
constitutes a quorum for the transaction of business, and the
council shall meet not more than once each quarter.
Section 1-29-30. The State Department of Education shall provide
technical, administrative, or clerical staff necessary for the
council to conduct its business.
Section 1-29-40. In addition to appropriations annually made
available by the General Assembly, the council may enter into
contracts and accept gifts, contributions, and bequests of an
unrestricted nature from individuals, foundations, corporations,
and other organizations or institutions for the purpose of
furthering the educational objectives of the council.
Section 1-29-50. The members are allowed the usual mileage, per
diem, and subsistence provided by law for members of state boards,
committees, and commissions. The expenses of the legislative
appointees must be paid from the approved accounts of their
respective bodies, and the expenses of the gubernatorial appointees
must be paid from funds appropriated to the Governor's
Office."
SECTION 57
TO AMEND THE 1976 CODE BY ADDING SECTION 59-63-765 SO AS TO PROVIDE
THAT IN A SCHOOL WHERE AT LEAST FORTY PERCENT OF THE ENROLLMENT
RECEIVES FREE OR REDUCED PRICED LUNCHES, THE SCHOOL DISTRICT MAY
IMPLEMENT A NUTRITIONAL, WELL-BALANCED SCHOOL BREAKFAST PROGRAM
IN
THAT SCHOOL IF FEDERAL FUNDS ARE AVAILABLE AND IF NO ADDITIONAL
PERSONNEL ARE REQUIRED.
The 1976 Code is amended by adding:
"Section 59-63-765. If a school has at least a forty percent
enrollment receiving free or reduced priced lunches, the school
district may implement in that school a nutritional, well-balanced
school breakfast program if
federal funds are available to cover the entire cost of the program
and if no additional personnel are required to implement the
program."
SECTION 58
TO PROVIDE THAT FOR NONRESIDENT RETAILERS FIRST APPLYING TO THE
SOUTH CAROLINA TAX COMMISSION BEFORE AUGUST 1, 1989, FOR THE
PURPOSE OF REGISTERING TO COLLECT AND PAY THE SOUTH CAROLINA SALES
TAX, THE LIABILITY FOR COLLECTING AND PAYING THE TAX BEGINS THE
DATE THE APPLICATION IS FILED.
For an unregistered nonresident retailer as defined in Section
12-35-95 of the 1976 Code who first applies before August 1, 1989,
to the South Carolina Tax Commission for the purpose of registering
to collect and pay the South Carolina sales tax, the liability for
collecting and paying the tax begins on the date the nonresident
retailer files the application.
SECTION 59
TO PROVIDE THAT FROM THE FUNDS SET ASIDE PURSUANT TO SECTION
12-27-1270 OF THE 1976 CODE, THE SOUTH CAROLINA COORDINATING
COUNCIL FOR ECONOMIC DEVELOPMENT MAY SPEND AN AMOUNT NOT
EXCEEDING
ONE MILLION DOLLARS IN FISCAL YEAR 1989-90 TO STUDY THE COMPUTER
INFRASTRUCTURE NEEDS OF STATE GOVERNMENT.
From the funds set aside pursuant to Section 12-27-1270 of the
1976 Code, the South Carolina Coordinating Council for Economic
Development may spend an amount not exceeding one million dollars
in Fiscal Year 1989-90 to study the computer infrastructure needs
of state government.
SECTION 60
TO AMEND SECTIONS 9-1-1220, 9-1-1550, AS AMENDED, AND 9-1-1767 OF
THE 1976 CODE, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM, SO
AS TO INCREASE EMPLOYER CONTRIBUTIONS BY FIFTY-FIVE HUNDREDTHS OF
ONE PERCENT, TO INCREASE THE MULTIPLIER FRACTION USED IN
CALCULATING SERVICE RETIREMENT BENEFITS FROM ONE AND THIRTY-FIVE
HUNDREDTHS PERCENT TO ONE AND FORTY-FIVE HUNDREDTHS PERCENT OF
AVERAGE FINAL COMPENSATION FOR CLASS ONE MEMBERS AND FROM ONE AND
SEVEN-TENTHS PERCENT TO ONE AND EIGHTY-TWO HUNDREDTHS PERCENT OF
AVERAGE FINAL COMPENSATION FOR CLASS TWO MEMBERS, TO INCREASE THE
BENEFITS PAYABLE DUE TO RETIREMENT BEFORE JULY 1, 1989, BY SEVEN
PERCENT EFFECTIVE ON THAT DATE; TO AMEND SECTION 9-8-60, RELATING
TO THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO
INCREASE THE MONTHLY RETIREMENT BENEFIT; TO AMEND SECTION 9-9-60,
RELATING TO THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL
ASSEMBLY, SO AS TO INCREASE THE MONTHLY RETIREMENT BENEFIT; TO
AMEND SECTIONS 9-11-60, AS AMENDED, AND 9-11-300, AS AMENDED,
RELATING TO THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM,
SO AS TO INCREASE THE MULTIPLIER USED IN CALCULATING SERVICE
RETIREMENT MONTHLY BENEFITS OF CLASS ONE MEMBERS FROM TEN DOLLARS
AND TWENTY-FIVE CENTS FOR EACH YEAR OF SERVICE TO TEN DOLLARS AND
NINETY-SEVEN CENTS AND TO INCREASE THE MULTIPLIER USED IN
CALCULATING MONTHLY SERVICE RETIREMENT BENEFITS OF CLASS TWO
MEMBERS FROM TWO PERCENT TO TWO AND FOURTEEN HUNDREDTHS PERCENT
OF
AVERAGE FINAL COMPENSATION, AND TO INCREASE THE BENEFITS PAYABLE
DUE TO RETIREMENT BEFORE JULY 1, 1989, BY SEVEN PERCENT EFFECTIVE
ON THAT DATE, AND TO PROVIDE THAT NO INTEREST OR PENALTIES MAY BE
ASSESSED ON UNDERPAYMENTS OF ESTIMATED STATE INDIVIDUAL INCOME
TAXES DUE FOR TAXABLE YEAR 1989 OCCURRING BECAUSE OF THE DELETION
OF THE STATE INCOME TAX EXEMPTION OF STATE RETIREMENT BENEFITS.
A. Section 9-1-1220 of the 1976 Code is amended by adding at the
end:
"Effective July 1, 1989, the State Budget and Control Board
shall increase the employer contribution rate for the South
Carolina Retirement System by fifty-five hundredths of one
percent."
B. Section 9-1-1550(A)(3) and (B) of the 1976 Code, as amended by
Act 475 of 1988, are further amended to read:
"(3) If he has a prior service certificate in full force and
effect, an additional employer annuity which must be equal to the
employee annuity which would have been provided at age sixty-five
or at age of retirement, whichever is less, by twice the
contributions which he would have made during his entire period of
prior service had the System been in operation and had he
contributed thereunder during such entire period.
Upon retirement from service on or after July 1, 1989, a Class One
member shall receive a service retirement allowance computed as
follows: If the member's service retirement date occurs on or
after his sixty-fifth birthday, or after he has completed thirty or
more years of creditable service, the allowance must be equal to
one and forty-five hundredths percent of his average final
compensation multiplied by the number of years of his creditable
service.
If the member's service retirement date occurs before his
sixty-fifth birthday and before he completes thirty years of
creditable service, his service retirement allowance is computed as
above, but is reduced by five-twelfths of one percent thereof for
each month by which his retirement date precedes the first day of
the month, prorated for periods less than a month, coincident with
or next following his sixty-fifth birthday.
Notwithstanding the foregoing provisions, any Class One member who
retires on or subsequent to July 1, 1976, shall receive not less
than the benefit provided under the formula in effect before July
1, 1976.
(B) Upon retirement from service on or after July 1, 1989, a Class
Two member shall receive a service retirement allowance computed as
follows:
(1) If the member's service retirement date occurs on or after
his sixty-fifth birthday or after he has completed thirty or more
years of creditable service, the allowance must be equal to one and
eighty-two hundredths percent of his average final compensation,
multiplied by the number of years of his creditable service.
(2) If the member's service retirement date occurs before his
sixty-fifth birthday and before he completes the thirty years of
creditable service, his service retirement allowance is computed as
in item (1) above but is reduced by five-twelfths of one percent
thereof for each month, prorated for periods less than a month, by
which his retirement date precedes the first day of the month
coincident with or next following his sixty-fifth birthday.
(3) Notwithstanding the foregoing provisions, a Class Two member
whose creditable service began before July 1, 1964, shall receive
not less than the benefit provided by subsection (A) of this
section."
C. Section 9-1-1767 of the 1976 Code, as added by Act 475 of 1988,
is amended by adding at the end:
"Effective July 1, 1989, the benefits payable due to
retirement before July 1, 1989, must be increased by seven
percent."
D. Section 9-8-60(2) of the 1976 Code is amended to read:
"(2) A retired member shall receive a monthly retirement
allowance which is equal to one-twelfth of seventy-one and
three-tenths percent of the current active salary of the respective
position."
E. Section 9-9-60(2) of the 1976 Code is amended to read:
"(2) Effective July 1, 1989, a retired member shall receive
a monthly retirement allowance which is equal to one-twelfth of
four and eighty-two hundredths percent of earnable compensation
multiplied by the number of years of his credited service prorated
for periods less than a year."
F. Section 9-11-60(2) of the 1976 Code, as amended by Act 424 of
1988, is further amended to read:
"(2) Upon service retirement on or after July 1, 1989, the
member shall receive a service retirement allowance which is equal
to the sum of (a), (b), and (c) below:
(a) a monthly retirement allowance equal to ten dollars and
ninety-seven cents multiplied by the number of years of his Class
One service;
(b) a monthly retirement allowance equal to one-twelfth of two
and fourteen hundredths percent of his average final compensation
multiplied by the number of years of his Class Two service;
(c) an additional monthly retirement allowance which is the
actuarial equivalent of the member's accumulated additional
contributions.
The sum of the retirement allowances computed under (a) and (b)
above may not be less than the allowance which would have been
provided under (a) if all of the member's credited service were
Class One service. For a police officer who became a member before
July 1, 1974, and who was a participant in the Supplemental
Allowance Program, the portion of his service retirement allowance
not provided by his accumulated contributions may not be less than
it would have been if the provisions of the System in effect on
June 30, 1974, had continued in effect until his date of
retirement."
G. Section 9-11-300 of the 1976 Code, as amended by Act 424 of
1988, is further amended by adding at the end:
"Benefits payable due to retirement before July 1, 1989, must
be increased by seven percent effective July 1, 1989."
H. No taxpayer receiving benefits from the various state
retirement systems provided in Title 9 of the 1976 Code may be
assessed penalties or interest on underpayments of estimated
individual income taxes for the 1989 taxable year occurring as a
result of the elimination of the total exemption of those benefits
from the South Carolina individual income tax.
I. This section takes effect July 1, 1989.
SECTION 61
TO AMEND THE 1976 CODE BY ADDING SECTION 12-37-251 SO AS TO PROVIDE
FOR AN INCREASE IN THE HOMESTEAD EXEMPTION BEGINNING WITH TAX YEAR
1989 IF THERE IS SUFFICIENT FISCAL YEAR 1988-89 SURPLUS REVENUE SET
ASIDE TO FUND THE INCREASE, TO PROVIDE FOR THE METHOD OF
DETERMINING THE AMOUNT OF THE INCREASE, AND TO PROVIDE THAT ANY
INCREASE PROVIDED PURSUANT TO THIS SECTION FOR THE 1989 TAX YEAR
APPLIES IN SUBSEQUENT TAX YEARS.
Article 3, Chapter 37, Title 12 of the 1976 Code is amended by
adding:
"Section 12-37-251. The amount of the homestead exemption
provided in Section 12-37-250 is increased beginning with tax year
1989 in the manner provided in this section. For each full
increment of seven hundred ninety thousand dollars of fiscal year
1988-89 unobligated surplus revenues set aside by law to fund
homestead exemption increases, the homestead exemption is increased
by five hundred dollars but the total amount of the increase may
not exceed five thousand dollars. The increases so determined are
permanent. If sufficient fiscal year 1988-89 surplus revenues
allocated for this purpose are not available, this increase does
not take effect. The Comptroller General shall certify no later
than August 15, 1989, as to the amount of any surplus revenues set
aside by law to fund an increase in the homestead exemption for the
1989 tax year and the amount, if any, of the additional exemption
as determined pursuant to the provisions of this section. If the
exemption is increased, the Comptroller General promptly shall
notify in writing the South Carolina Tax Commission and each county
auditor of the amount of the increase."
SECTION 62
TO AMEND THE 1976 CODE BY ADDING SECTION 12-7-437 SO AS TO ALLOW A
DEDUCTION FROM SOUTH CAROLINA TAXABLE INCOME OF INDIVIDUALS,
PARTNERSHIPS, ESTATES, AND TRUSTS EQUAL TO FOURTEEN PERCENT OF NET
LONG TERM CAPITAL GAINS FOR TAXABLE YEARS BEGINNING IN 1990,
TWENTY-NINE PERCENT FOR TAXABLE YEARS BEGINNING IN 1991, AND
FORTY-FOUR PERCENT FOR TAXABLE YEARS BEGINNING AFTER 1991, TO
DEFINE NET LONG TERM CAPITAL GAIN SO AS TO ESTABLISH A HOLDING
PERIOD OF TWO OR MORE YEARS, AND TO AUTHORIZE THE SOUTH CAROLINA
TAX COMMISSION TO PROMULGATE IMPLEMENTING REGULATIONS.
Article 4, Chapter 7, Title 12 of the 1976 Code is amended by
adding:
"Section 12-7-437. (A) There is allowed a deduction from
the South Carolina taxable income of individuals, partnerships
(including S corporations), estates, and trusts equal to the
following amounts of net long term capital gain recognized during
the below-referenced taxable years:
(1) fourteen percent for taxable years beginning in 1990;
(2) twenty-nine percent for taxable years beginning in 1991;
(3) forty-four percent for taxable years beginning after 1991.
(B) For purposes of this section, net long term capital gain is
as defined in the Internal Revenue Code of 1986, as amended through
December 31, 1988, except that the required holding period is two
or more years.
(C) The commission may promulgate regulations necessary to
implement the provisions of this section."
End of Part II
Part III-001 Part III-001
PART III
SECTION 1. The following sums of money constitute the
sources of the funds for the appropriations in this Part
and, notwithstanding any other provisions of law providing
for the use of surplus revenues, any Fiscal Year 1988-89
surplus revenues must first be used for the appropriations
contained in this Part:
(1) Fiscal Year 1987-88
Unobligated Surplus $12,232,190
(2) Part III Inventory
Reimbursement Lapse 2,507,451
(3) Part III State Employee
Bonus Lapse 788,785
(4) Part III, DHEC Children
Rehabilitation Service Lapse 700,000
(5) Projected Fiscal Year
1988-89 Surplus 53,933,353
(6) FY 89 Projected Lapse 10,490,000
(7) FY 89 Additional Departmental Revenue 2,893,466
(8) FY 89 Department of Education EFA Lapse 3,000,000
(9) B&C Board - General Services
Old Pee Dee Land 1,157,000
---------
Total Funds $87,702,245
SECTION 2. The following sums, if so much is necessary, are
appropriated from the general fund of the State to supple-
ment appropriations made for the expenses of the state gov-
ernment in the annual general appropriations act for Fiscal
Part III-002 Part III-002
Year 1988-89:
(1)(a) Budget & Control Board
FY 89 Health Insurance
Restoration-Deficit $ 6,850,000
(b) Dept of Mental Health
FY 89 Deficiency 5,100,000
(c) MUSC Hospital
FY 89 Deficiency 3,000,000
(d) SLED
Garcia Obligations 168,000
-------
15,118,000
(1.1) If the Medical University of South Carolina does
not need all of the funds appropriated in this section for
the hospital to cover the deficiency, the amount not used
may be used to purchase equipment for the hospital.
(2) General Reserve Fund
Transfer Required Contribution 7,216,805
---------
7,216,805
(3) Department of Education
(a) Governor's School
Library Books, Equipment
& Supplies 88,211
(b) Textbooks 3,826,624
(c) Health Education 250,000
(d) Bus Replacement 4,111,558
(e) BSAP 592,400
(f) EIA - New Initiatives:
( i) Teacher
Evaluation 900,000
(ii) S.C. History
Project 40,000
(iii) Black History
Project 90,000
(iv) Drop-out
Prevention 3,000,000
( v) Teacher
Leadership
Center 500,000
(vi) Arts in Basic
Curriculum 360,000
(vii) Cost Savings
Program 250,000
(viii) Reading Recovery