South Carolina General Assembly

General Appropriations Bill H. 3400 for the fiscal year beginning July 1, 1997

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 SECTION 12-6-1140 OF THE 1976 CODE, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR PURPOSES OF THE STATE INDIVIDUAL INCOME TAX, SO AS TO PROVIDE A DEDUCTION FOR TAXPAYERS AT LEAST SIXTY-FIVE YEARS OF AGE WITH A MAXIMUM DEDUCTION OF ELEVEN THOUSAND FIVE HUNDRED DOLLARS AND TO PROVIDE PROCEDURES TO IMPLEMENT THIS DEDUCTION.

A. Section 12-6-1140 of the 1976 Code, as added by Act 76 of 1995, is amended by adding an appropriately numbered item to read:

"( ) South Carolina taxable income received by a resident individual taxpayer who before or during the applicable taxable year has attained the age of sixty-five. If a married taxpayer eligible for this deduction files a joint federal income tax return with a spouse who is not eligible for this deduction, then their joint income must be allocated between them on a pro-rata basis in the manner the department shall provide."

B. This section applies for taxable years beginning after 1996 but the maximum deduction allowed an eligible taxpayer pursuant to the unnumbered item added in Section 12-6-1140 of the 1976 Code by subsection A of this section is $11,500 reduced by the amount the taxpayer is eligible to deduct pursuant to Sections 12-6-1140(3) and 12-6-1170 of the 1976 Code for that taxable year.

SECTION 3

TO AMEND SECTION 38-7-30, AS AMENDED, OF THE 1976 CODE, RELATING TO THE TAX ON FIRE INSURERS TO COVER THE EXPENSES OF INSPECTIONS AND INVESTIGATIONS, SO AS TO PROVIDE, AMONG OTHER THINGS, FOR THE USE OF FIFTY PERCENT OF THE ONE PERCENT TAX LEVIED IN THIS SECTION FOR THE EXPENSES OF THE DIVISION OF FIRE AND LIFE SAFETY OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, TO CAP THIS AMOUNT FOR FISCAL YEAR 1997-98 ONLY, AND TO REQUIRE AN ANNUAL REPORT OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION.

A. Section 38-7-30 of the 1976 Code, as amended by Section 534 of Act 181 of 1993, is further amended to read:

"Section 38-7-30. Any expenses, including expenses of counsel, detectives, and officers, incurred by the discrimination in rates, must be defrayed by the fire insurance companies doing business in this State, and a tax of one percent on the gross premium receipts less premiums returned on canceled policy contracts and less dividends and returns of unabsorbed premium deposits of all fire insurance companies is levied for this purpose, to be collected by the director or his designee as other taxes on fire insurance companies are collected. The director or his designee shall keep a separate account of all monies received and disbursed under the provisions of this section and shall include the account in his annual report. Fifty percent of the one percent tax levied in this section must be directed to the Division of Fire and Life Safety of the Department of Labor, Licensing and Regulation to be used only for expenses of this division. For fiscal year 1997-98 only, the fifty percent of the tax levied by this section that is directed to the Department of Labor, Licensing and Regulation is capped at $2,567,325. The department shall report annually to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee where any growth above the base authorization for the preceding is expended and for what purposes within the Division of Fire and Life Safety."

B. This section takes effect July 1, 1997.

SECTION 4

TO AMEND TITLE 59 OF THE 1976 CODE, RELATING TO EDUCATION, BY ADDING CHAPTER 4 SO AS TO ESTABLISH THE SOUTH CAROLINA TUITION PREPAYMENT PROGRAM WITHIN THE SOUTH CAROLINA BUDGET AND CONTROL BOARD THROUGH WHICH TUITION ASSOCIATED WITH PUBLIC AND INDEPENDENT POST-SECONDARY EDUCATION MAY BE PAID IN ADVANCE AND FIXED AT A GUARANTEED LEVEL FOR UP TO FOUR YEARS OF UNDERGRADUATE ENROLLMENT.

A. Title 59 of the 1976 Code is amended by adding:

"CHAPTER 4

South Carolina Tuition Prepayment Program

Section 59-4-10. This chapter may be cited as the 'South Carolina Tuition Prepayment Program Act'. The South Carolina Tuition Prepayment Program is established to assist the citizens of South Carolina with the expense of college by providing an advanced payment program for tuition at a fixed and guaranteed level for public colleges and universities.

Section 59-4-20. As used in this chapter:
(1) 'Program' means the South Carolina Tuition Prepayment Program.
(2) 'Fund' means the South Carolina Tuition Prepayment Program Fund.
(3) 'Board' means the State Budget and Control Board.
(4) 'Director' means the head of the South Carolina Tuition Prepayment Program.
(5) 'Contributor' means a person who makes or is obligated to make advance payments in accordance with a prepaid tuition contract.
(6) 'The Tuition Prepayment Contract' means the contract entered into by the Director of the South Carolina Tuition Prepayment Program or his designee on behalf of the program and a contributor pursuant to this chapter for the advance payment by the contributor of undergraduate tuition at a fixed, guaranteed level for a designated beneficiary to attend a public educational institution of higher learning in the State or another educational institution of higher learning as may be provided in this chapter to which the designated beneficiary is admitted.
(7) 'College or university' means a state-chartered public educational institution of higher learning located in this State.
(8) 'Independent institution of higher education' means an independent eleemosynary junior or senior college in South Carolina whose major campus and headquarters are located within South Carolina and which is accredited by the Southern Association of Colleges and Secondary Schools.
(9) 'Tuition' means the credit-hour charges imposed by a public higher education institution in this State and all mandatory fees required as a condition of enrollment of all students.
(10) 'Designated beneficiary' means the individual who is designated as the beneficiary of amounts paid or to be paid to the South Carolina Tuition Prepayment Program or, in the case of a change in beneficiaries as permitted under this chapter, the individual who is the new beneficiary.

Section 59-4-30. (A) The South Carolina Tuition Prepayment Program is created as a program within the Budget and Control Board. The chief administrative and operating official for the program is the director who must be appointed and supervised by the executive director of the board. The director must be a state official or employee.
(B) The board is responsible for developing and adopting the investment policies, guidelines, and strategies for the fund and determining the costs, termination, and withdrawal options of the prepaid tuition contracts. The board shall promulgate regulations in accordance with the Administrative Procedures Act which:
(1) provide for the number and types of contract plans to be offered, to include both public and independent colleges and universities;
(2) prescribe the terms and conditions of the prepaid tuition contracts, including the terms and conditions under which funds may be withdrawn or refunds made from the fund;
(3) prescribe the requirements, procedures, and guidelines regarding advanced payment contracts;
(4) provide for the contract contents to include, at a minimum, tuition and credit hour guarantees, beneficiary substitutions, default, withdrawal, refund, termination and penalty information, and contributor payment amounts and conditions;
(5) provide for the receipt of advance payments;
(6) prescribe guidelines governing the program;
(7) provide for the charging and retention of fees for the cost of services and administration of the fund;
(8) prescribe the investment and management policies of the fund; and
(9) prescribe other policies, procedures, and criteria necessary to implement and administer the program.
These regulations must be developed in consultation with the chairmen or their designees of the Senate Finance Committee, the Senate Education Committee, the House Ways and Means Committee, and the House Education and Public Works Committee and submitted in sufficient time for the General Assembly to begin its approval process by January 15, 1998. It is the intent of the General Assembly to have these regulations in force so that the program may begin to offer contracts by July 1, 1998.

Section 59-4-40. The fund is a nonpublic special, revolving fund established and maintained by the State of South Carolina. The fund consists of monies received from contributors, other monies acquired from governmental and private sources, and proceeds from the investments of the fund. The fund may expend funds for the purposes of this chapter only and may not be considered public funds. There must be a separate accounting for each designated beneficiary.
The fund must be invested as directed by the board. However, earnings in the fund or a portion of the fund may not be used as security for a loan. An attempt to use the fund, a contract, or a portion of either as security for a loan is void. The fund may be invested in a manner authorized by law. The custody and management of the fund is directed by the board. The earnings from fund investments become a part of the fund and may be expended for the purposes of this chapter only.

Section 59-4-50. An act or undertaking of the program is not a debt of the State or any agency, department, institution, or political subdivision of the State, or a pledge of the full faith and credit of the State or any agency, department, institution, or political subdivision, but is payable solely from the monies in the fund.

Section 59-4-60. All of the agencies, departments, and institutions of higher learning of the State must provide reasonable cooperation and assistance to the board and the director in the implementation of the program under this chapter. Colleges and universities shall make every effort to restrict tuition increases to no more than the annual higher education price index.

Section 59-4-70. Upon implementation of the program, the director or his designee shall prepare an annual financial report of the fund and the program. This report must be submitted to the board on the date required by the board and in the format prescribed by the board. The program and the fund also are subject to audit by the State Auditor or his designee. The director or his designee annually shall evaluate the actuarial soundness of the fund and report this information to the board.

Section 59-4-80. The director shall solicit answers to applicable ruling requests from the Internal Revenue Service regarding the tax status of fees paid pursuant to a prepaid tuition contract to the contributor and to the designated beneficiary and from the Securities and Exchange Commission regarding the application of federal securities laws to the program. The director shall make the status of these requests known to the board. In accordance with applicable law or Internal Revenue Service ruling, the board shall structure the program in order to allow for federal tax deferral on contributions to the fund.

Section 59-4-90. The Comptroller General and the chief finance officers of state agencies, departments, and institutions maintaining separate payroll accounts may arrange for contributions through payroll deduction to the fund the appropriate payment in accordance with a tuition prepayment contract, at the request of a state employee.

Section 59-4-100. Notwithstanding any other provision of law, neither the program nor the fund is liable for income taxes, and neither the program nor the fund is liable for local taxes, fees, or assessments. In addition, contributions to the fund credited to a beneficiary's account do not entitle the contributor to a deduction for purposes of the state individual income tax, nor must these contributions be included in the South Carolina gross income of the beneficiary or anyone required to support the beneficiary. Furthermore, earnings on the account, tuition waivers, credits or payments for tuition, or any money or payout that the designated beneficiary receives or from which he benefits to the extent that the payments are used for tuition expenses during the same calendar year in which they are received shall not be included in the South Carolina gross income of the beneficiary or anyone required to support the beneficiary."

B. This section takes effect July 1, 1997.

SECTION 5

TO AMEND SECTION 12-6-1120 OF THE 1976 CODE, RELATING TO THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF SOUTH CAROLINA INCOME TAXATION, SO AS TO PROVIDE THAT GROSS INCOME DOES NOT INCLUDE AMOUNTS EXCLUDED BY THE SOUTH CAROLINA TUITION PREPAYMENT PROGRAM.

Section 12-6-1120 of the 1976 Code, as added by Act 76 of 1995, is amended by adding an appropriately numbered item to read:

"( ) South Carolina gross income does not include the amounts excluded by Section 59-4-100 of the South Carolina Tuition Prepayment Program."

SECTION 6

TO AMEND SECTION 59-39-100 OF THE 1976 CODE, RELATING TO THE ISSUANCE OF UNIFORM HIGH SCHOOL DIPLOMAS AND THE NUMBER OF UNITS REQUIRED TO RECEIVE A DIPLOMA, SO AS TO PROVIDE THAT, BEGINNING WITH THE NINTH GRADE CLASS OF SCHOOL YEAR 1997-98 AND THEREAFTER, THE NUMBER OF UNITS REQUIRED FOR A DIPLOMA IS TWENTY-FOUR INSTEAD OF TWENTY, TO SPECIFY THE CONTENT OF THE FOUR ADDITIONAL UNITS, AND TO REVISE THE MANNER IN WHICH OTHER UNITS MAY BE APPLIED TOWARD THESE REQUIREMENTS.

Section 59-39-100 of the 1976 Code is amended to read:

"Section 59-39-100. Diplomas issued to graduates of accredited high schools within this State must be uniform in every respect and particularly as to color, size, lettering, and marking. The number of units required for a state high school diploma is twenty units as prescribed by the State Board of Education. Beginning in the 1986-87 academic year, a minimum of 3 three units must be earned in mathematics and a minimum of 2 two units must be earned in science.
One unit in computer science, if approved by the State Department of Education for this purpose, may be counted toward the mathematics requirement.
Students who earn one unit in science and six or more units in a specific occupational service area will meet the science requirements for a state high school diploma. Vocational programs operating on a 3-2-1 structure may count prevocational education as one of the six required units.
Beginning with the ninth grade class of school year 1997-98 and thereafter, the number of units required for a high school diploma is twenty-four units as prescribed by the State Board of Education by regulation, with one additional unit required in mathematics, science, and computer science to include keyboarding. For students in a college preparatory track, as defined by the state board, one additional unit must be earned in a foreign language; and for students in a track designed to enter the work force, as defined by the state board, one additional vocational unit must be earned. Beginning with the ninth grade class of school year 1997-98, if a student counts one unit of computer science toward his mathematics requirement as permitted above, one additional unit of computer science must be earned.
Nothing herein prohibits local school boards of trustees from awarding recognition to students who complete additional units and credits beyond those required by this section.
"

SECTION 7

DELETED

SECTION 8

DELETED

SECTION 9

DELETED

SECTION 10

TO AMEND SECTION 12-6-40, AS AMENDED, OF THE 1976 CODE, RELATING TO DEFINITIONS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO UPDATE THE REFERENCE DATE WHEREBY THIS STATE ADOPTS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986, INCLUDING EFFECTIVE DATES, AND TO DELETE OBSOLETE REFERENCES.

A. Section 12-6-40(A) of the 1976 Code, as last amended by Act 410 of 1996, is further amended to read:

"(A) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1995 1996, and includes the provisions of Section 162(l) thereof as amended by P.L. 104-7 the effective date provisions contained therein."

B. This section is effective for taxable years beginning after 1996.

SECTION 11

DELETED (RULED NON-GERMANE)

SECTION 12

DELETED

SECTION 13

TO AMEND SECTION 11-11-140 OF THE 1976 CODE, RELATING TO LIMITATIONS ON GENERAL FUND APPROPRIATIONS FOR A FISCAL YEAR AND THE USE OF SURPLUS REVENUES, SO AS TO DELETE PROVISIONS RELATING TO LIMITATIONS ON ANNUAL GENERAL FUND REVENUES AND USES OF SURPLUS REVENUES TO REFLECT IN THE SECTION THE GOVERNOR'S DUTY ANNUALLY TO PREPARE A BUDGET WITH RESPECT TO CHANGES IN ACCOUNTING METHODS, AND TO PROHIBIT THE GOVERNOR'S ANNUAL BUDGET RECOMMENDATION FROM PROPOSING THE APPROPRIATION OF SURPLUS GENERAL FUND REVENUES IN EXCESS OF AMOUNTS OFFICIALLY RECOGNIZED AS SUCH BY THE BOARD OF ECONOMIC ADVISORS, AND TO PROHIBIT THE APPROPRIATION OF SURPLUS GENERAL FUND REVENUES IN EXCESS OF AMOUNTS OFFICIALLY RECOGNIZED AS SUCH BY THE BOARD OF ECONOMIC ADVISORS.

A. Section 11-11-140 of the 1976 Code, as last amended by Act 142 of 1995, is further amended to read:

"Section 11-11-140. (A) (1) General fund appropriations in the annual general appropriations act may not exceed the base revenue estimate as calculated pursuant to subsection (B) or as adjusted pursuant to subsection (C). In the Governor's annual budget recommendation to the General Assembly, no recommendation may be made for the appropriation of surplus general fund revenues in excess of amounts officially recognized as such by the Board of Economic Advisors.
(2) In any bill or joint resolution appropriating general fund revenues, no surplus general fund revenue may be appropriated in excess of amounts officially recognized as such by the Board of Economic Advisors.
(B) For purposes of this section, the base revenue estimate is the lesser of:
(1) (a) the total of recurring general fund revenues collected in the fiscal year completed before the General Assembly first considers the annual general appropriations bill increased by any recurring general fund revenue enhancements occurring in the current fiscal year if such enhancements are certified by the Board of Economic Advisors;
(b) increased by a sum equal to seventy-five percent of the amount the general fund revenue estimate of the Board of Economic Advisors for the upcoming fiscal year exceeds the amount in subitem (a) of this item; or
(2) the general fund revenue estimate of the Board of Economic Advisors for the upcoming fiscal year.
(C) The base revenue estimate may be increased or decreased (1) by any amendment to the general appropriations bill which affects the Board of Economic Advisors revenue estimate or (2) enacted legislation which affects the board's estimate, if the board certifies in writing the change in estimated revenue.
(D) Appropriations from surplus may not be made before the first meeting of the General Assembly following the Comptroller General's closing of the books on the fiscal year in which the surplus occurred and may be appropriated only for nonrecurring purposes.
(E) In making a the annual budget recommendation to the General Assembly for the fiscal year 1994-95 budget, and for each year thereafter, the Budget and Control Board Governor shall not incorporate or realize any revenue derived on the basis of any future change in a method of accounting, as determined by the Budget and Control Board, unless such the change in a method of accounting is based on statutory authority specifically granted to the Budget and Control Board or a statutory enactment changing the method of accounting.
(F) Notwithstanding the provisions of subsection (D), appropriations from surplus may not be expended before the Comptroller General's closing of the books on the fiscal year in which the surplus occurred. The surplus in this subsection, that is the calculated set-aside as defined in this section, after reduction by way of transfer to the general fund of such amount as necessary to offset any recognized budget shortfall for the fiscal year in which the set-aside surplus occurred, is appropriated for deposit in the State Property Tax Relief Fund. After the first year that the State Property Tax Relief Fund is fully funded, the procedure in subsection (D) must be applied."

B. This section takes effect July 1, 1997.

SECTION 14

DELETED

SECTION 15

TO AMEND SECTION 12-37-251, AS AMENDED, OF THE 1976 CODE, RELATING TO RESIDENTIAL EXEMPTION REIMBURSEMENTS, SO AS TO REVISE THE SCHEDULE OF REIMBURSEMENT FOR THE RESIDENTIAL HOMESTEAD EXEMPTION.

A. Section 12-37-251(B) of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:

"(B) School districts must be reimbursed, in the manner provided in Section 12-37-270, for the revenue lost as a result of the homestead exemption provided in this section except that ninety percent of the reimbursement must be paid in the last quarter of the calendar year in the last quarter of the calendar year on December first. "

B. This section takes effect July 1, 1997.

SECTION 16

DELETED (RULED NON-GERMANE)

SECTION 17

TO AMEND THE 1976 CODE BY ADDING SECTION 59-39-105 SO AS TO PROVIDE THAT PUBLIC AND PRIVATE HIGH SCHOOL GRADUATES OF THIS STATE WHO MEET CERTAIN SPECIFIED CRITERIA SHALL RECEIVE A SUPERIOR SCHOLARS FOR TODAY AND TOMORROW (STAR) HIGH SCHOOL DIPLOMA; BY ADDING SECTION 59-39-180 SO AS TO PROVIDE THAT STUDENTS RECEIVING THE STAR DIPLOMA MEETING CERTAIN OTHER CRITERIA ALSO SHALL RECEIVE A FIVE HUNDRED DOLLAR SCHOLARSHIP TO ATTEND ANY ACCREDITED INSTITUTION OF HIGHER LEARNING OR TECHNICAL COLLEGE IN THIS STATE; BY ADDING SECTION 59-39-190 SO AS TO PROVIDE THAT THE STATE BOARD OF EDUCATION IS AUTHORIZED TO PROMULGATE REGULATIONS NECESSARY FOR THE IMPLEMENTATION AND ADMINISTRATION OF THE STAR DIPLOMA AND SCHOLARSHIP, AND TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION SHALL DISTRIBUTE THE SCHOLARSHIP FUNDS FOR THESE STUDENTS TO THE APPROPRIATE INSTITUTIONS; AND BY ADDING SECTION 59-103-175 SO AS TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION IS DIRECTED TO INCLUDE INFORMATION ABOUT THE STAR DIPLOMA IN THE HIGHER EDUCATION AWARENESS PROGRAM.

A. Article 1, Chapter 39, Title 59 of the 1976 Code is amended by adding:

"Section 59-39-105. For the purpose of recognizing and rewarding outstanding performance and academic achievement on the part of public and nonpublic school students beginning with the 1997-98 school year, students graduating from accredited public and nonpublic high schools of this State who have earned no less than twenty-four units as prescribed under Section 59-39-100, have met the requirements for either the college preparation or the technical preparation track as prescribed by the State Board of Education, and earned the equivalent of an overall 'B' grade average or better shall be awarded the Superior Scholars for Today and Tomorrow (STAR) diploma. Students meeting the course requirements for this diploma by participating in higher level courses such as advanced placement shall have their grade point average adjusted to reflect the greater difficulty of these courses. For the purposes of this diploma, the State Board of Education shall define what is meant by a 'B' average and adjustments to be made to reflect course difficulty.
The State Board of Education is directed to develop the design of the STAR diploma to recognize the special achievements of students awarded this diploma and to distinguish it from the diploma issued under Section 59-39-100."

B. Article 1, Chapter 39, Title 59 of the 1976 Code is amended by adding:

"Section 59-39-180. The Superior Scholars for Today and Tomorrow (STAR) Scholarship is established to reward students graduating from an accredited public or nonpublic high school of this State receiving a Superior Scholars for Today and Tomorrow diploma pursuant to Section 59-39-105, who score no less than a composite score of 1100 on the Scholastic Aptitude Test and who attend an accredited public or private institution of higher learning or technical college in this State. These students shall receive a scholarship of five hundred dollars to be used to pay for tuition and fees at any accredited higher education institution in South Carolina."

C. Article 1, Chapter 39, Title 59 of the 1976 Code is amended by adding:

"Section 59-39-190. The State Board of Education is authorized to promulgate regulations necessary for the implementation and administration of the Superior Scholars for Today and Tomorrow (STAR) diploma and scholarship. The Department of Education shall furnish the Commission on Higher Education with the list of students who qualify for the STAR Scholarship. The Commission on Higher Education shall distribute the scholarship funds for these students to the appropriate institutions."

D. Chapter 103, Title 59 of the 1976 Code is amended by adding:

"Section 59-103-175. The Commission on Higher Education is directed to include information about the STAR diploma in the Higher Education Awareness Program information developed in accordance with Section 59-103-170."

E. This section takes effect upon approval by the Governor.

SECTION 18

TO AMEND SECTION 56-3-5010, AS AMENDED, OF THE 1976 CODE, RELATING TO THE ISSUANCE OF "PUBLIC EDUCATION: A GREAT INVESTMENT" SPECIAL LICENSE PLATES, SO AS TO PROVIDE THAT A LICENSE PLATE PURCHASER MAY DESIGNATE A SCHOOL DISTRICT OR A SCHOOL TO RECEIVE A PORTION OF THE LICENSE PLATE FEE, TO PROVIDE THAT THE DEPARTMENT OF PUBLIC SAFETY SHALL REPORT TO THE DEPARTMENT OF EDUCATION THE SCHOOL DISTRICT AND THE SCHOOL CHOSEN BY THE LICENSE PLATE PURCHASER TO RECEIVE A PORTION OF THE LICENSE PLATE FEE, AND TO PROVIDE THAT THE DEPARTMENT OF EDUCATION SHALL DISTRIBUTE A PORTION OF THE LICENSE PLATE FEE TO A SCHOOL DISTRICT FOR FURTHER DISTRIBUTION TO A SCHOOL CHOSEN BY THE LICENSE PLATE PURCHASER.

A. Section 56-3-5010 of the 1976 Code, as added by Act 342 of 1996, is amended to read:

"Section 56-3-5010. The Department of Public Safety may issue a special commemorative 'Public Education: A Great Investment' motor vehicle license plate to establish a special fund to be used by the Department of Education for the purpose of providing computers to the school districts public schools. The biennial fee for the commemorative license plate is fifty-four dollars, and of this amount, twenty dollars must be placed in a special 'Public Education: A Great Investment Fund' established within and administered by the Department of Education to purchase computers for use in the classroom and thirty-four dollars must be distributed to the school districts where the purchasers of the license plates reside district or a school chosen by the license plate purchaser to be used to purchase computers for use in the classroom. The Department of Public Safety shall report to the Department of Education the school district and the school chosen by the license plate purchaser to which the funds must be distributed. The Department of Education shall distribute funds to the district for further distribution to the schools chosen by the license plate purchasers. The commemorative plate must be of the same size and general design of regular motor vehicle license plates and must be imprinted with the words 'Public Education: A Great Investment'. The plates must be issued or revalidated for a biennial period which expires twenty-four months from the month they are issued."

B. This section takes effect July 1, 1997.

SECTION 19

TO AMEND THE 1976 CODE BY ADDING SECTION 59-19-45 SO AS TO PROVIDE THAT ALL SCHOOL BOARD MEMBERS OR MEMBERS OF COUNTY BOARDS OF EDUCATION FIRST ELECTED OR APPOINTED AFTER JULY 1, 1997, SHALL COMPLETE SUCCESSFULLY AN ORIENTATION PROGRAM, TO PROVIDE THE CONTENT OF THE PROGRAM AND FOR THE MANNER IN WHICH THIS ORIENTATION PROGRAM SHALL BE CONDUCTED, AND TO PROVIDE FOR CERTAIN REIMBURSEMENTS TO SCHOOL DISTRICTS OR COUNTY BOARDS OF EDUCATION FOR THE COST OF THIS ORIENTATION PROGRAM.

A. The 1976 Code is amended by adding:

"Section 59-19-45. (A) Within one year of taking office, all persons elected or appointed as members of a school district board of trustees after July 1, 1997, shall complete successfully an orientation program in the powers, duties, and responsibilities of a board member including, but not limited to, topics on policy development, personnel, superintendent and board relations, instructional programs, district finance, school law, ethics, and community relations.
(B) The orientation shall be approved by the State Board of Education and conducted by public or private entities approved by the State Board of Education such as the South Carolina School Boards Association.
(C) The provisions of this section also apply to members of county boards of education appointed or elected after July 1, 1997, in the same manner the provisions of this section apply to members of school district boards of trustees.
(D) The provisions of this section do not apply to a school board trustee or county board of education member who was serving in such office on July 1, 1997, and who is continuously reelected or reappointed to office thereafter.
(E) The State Department of Education shall reimburse a school district or county board of education conducting an orientation for a new board member as required by this section at the rate of eighty dollars for a member, provided that the total reimbursements by the department in one fiscal year must not exceed ten thousand dollars. If the total projected cost of these reimbursements for a year as determined by the department exceeds ten thousand dollars, the eighty-dollar reimbursement for each new member must be reduced proportionately. If funds are not available for these reimbursements, the board member orientation is not required but may be conducted at the option of a school district or county board of education. The State Board of Education shall establish guidelines and procedures for these reimbursements."

B. This section takes effect upon approval by the Governor.

SECTION 20

TO AMEND SECTION 59-142-10 OF THE 1976 CODE, RELATING TO THE NEED-BASED GRANTS PROGRAM UNDER WHICH STUDENTS MAY RECEIVE A NEED-BASED GRANT FROM THE CHILDREN'S EDUCATION ENDOWMENT FUND, SO AS TO PROVIDE THAT PART-TIME AS WELL AS FULL-TIME STUDENTS ARE ELIGIBLE FOR SUCH GRANTS.

A. Section 59-142-10 of the 1976 Code, as added by Section 20A, Part II, of Act 458 of 1996, is amended to read:

"Section 59-142-10. (A) The State shall fund a need-based grant for a student who enrolls as an undergraduate in a public institution of higher learning in this State, who applies for the need-based grant, and who meets the following qualifications:
(1) meets domicile requirements as defined in Section 59-112-20 with the additional requirement of at least twelve consecutive months of residency in the State of South Carolina immediately preceding enrollment;
(2) is accepted by and enrolled or registered in a state public institution of higher learning as a first degree full-time or part-time student in a certificate, or diploma of at least one year in length, or undergraduate degree program;
(3) is of good moral character and has never been convicted of a felony; and
(4) is found to be in financial need according to federal Title IV regulations.
(B) To maintain continued state need-based grants, once enrolled a student shall:
(1) complete a minimum of twenty-four semester hours an academic year if a full-time student and twelve semester hours an academic year if a part-time student and make satisfactory academic progress toward a degree as determined by the institution;
(2) have no criminal record;
(3) be eligible for the need-based grants for a maximum of four academic years of two semesters."

B. This section takes effect upon approval by the Governor.

SECTION 21

TO AMEND TITLE 59 OF THE 1976 CODE, RELATING TO EDUCATION, BY ADDING CHAPTER 118 SO AS TO ENACT THE SOUTH CAROLINA ACADEMIC ENDOWMENT INCENTIVE ACT OF 1997 WHICH PERMITS CERTAIN STATE-SUPPORTED COLLEGES AND UNIVERSITIES TO RECEIVE STATE MATCHING FUNDS FOR ACADEMIC PURPOSES FROM THE HIGHER EDUCATION MATCHING GIFT FUND HEREIN ESTABLISHED, AND TO PROVIDE FOR THE MANNER IN WHICH STATE MATCHING FUNDS SHALL BE PROVIDED.

A. Title 59 of the 1976 Code is amended by adding:

"CHAPTER 118

South Carolina Academic Endowment Incentive Act of 1997

Section 59-118-10. This chapter is known and may be cited as the South Carolina Academic Endowment Incentive Act of 1997.

Section 59-118-20. The purposes of this chapter are to:
(1) further the state's efforts to meet its responsibility for the intellectual development of our youth;
(2) enhance statewide economic development through initiatives in higher education; to provide incentives to individuals, corporations, or private funding organizations to create endowments to support the teaching and related activities at South Carolina's public colleges and universities;
(3) supplement the financial impacts of newly created endowments that support these colleges and universities.

Section 59-118-30. For purposes of this chapter:
(1) 'Qualifying college or university' means a state-supported, post-secondary, four-year educational institution offering undergraduate, master, or doctoral degree programs.
(2) 'Endowments' mean permanent gifts or donations to the qualifying college or university or its principal foundation including cash, income producing securities, an income producing business, real property, personal property, fixed assets, mortgage notes, and life income gifts or bequests. Research grants and funds received by the institution in the performance of a contractual obligation are not an endowment for purposes of this chapter.
(3) 'Principal foundation' means a foundation designated by the Board of Trustees of the qualifying college or university and registered with the South Carolina Secretary of State.
(4) 'Year' means a state fiscal year beginning on the first day of July and ending the following June thirtieth.

Section 59-118-40. Each qualifying college or university will provide donors with an incentive in the form of matching state gifts on disbursements from earnings on certain endowments, donations, or gifts if these monies are used for the purposes specified in Section 59-118-50.

Section 59-118-50. Disbursements from the earnings must be used to provide funds for academic purposes, to include academic scholarships, and are then eligible to receive state matching funds.

Section 59-118-60. There is created the South Carolina Higher Education Matching Gift Fund which shall be separate and distinct from the state general fund and shall be administered by the Commission on Higher Education with the funds appropriated by the General Assembly in the general appropriations act of 1997-98. The General Assembly in the annual general appropriations act shall appropriate monies into this matching gift, fund not to exceed five million dollars annually, to be used for the purpose of providing matching state funds to qualifying colleges and universities for purposes stipulated by this chapter. The combined annual total of the match funds appropriated to the University of South Carolina Columbia, Clemson University, and the Medical University of South Carolina cannot exceed sixty percent of the annual appropriation. The disbursement match cannot exceed the amount provided by the South Carolina Higher Education Matching Gift Fund. The State Treasurer shall manage and invest the monies in the Higher Education Matching Gift Fund in the same manner and under the same terms and conditions as other state funds under his control are managed and invested, and disbursements to particular colleges or universities shall be made on warrant and under the direction of the Commission on Higher Education pursuant to the provisions of this chapter.

Section 59-118-70. The State of South Carolina, acting through the Commission on Higher Education, shall provide funds to match funds from the qualifying college, university, or principal foundation, to the extent of available funds, from the South Carolina Higher Education Matching Gift Fund established in Section 59-118-60.

Section 59-118-80. The state matching gifts authorized in Section 59-118-70 are subject to the following conditions:
(1) qualifying disbursements to which the state matching gift is applied must come from the earnings of the endowment and not from principal or corpus;
(2) the state matching funds must go directly into the college's or university's operating account to be spent only for the purposes authorized;
(3) the college or university must make application to receive state matching funds on forms and under procedures prescribed by the Commission on Higher Education.

Section 59-118-90. The Commission on Higher Education shall specify by regulation the procedures for submission and documentation of requests for matching state funds.

Section 59-118-100. The Commission on Higher Education shall ensure that each qualifying college or university receives its proportionate share of the State Higher Education Matching Gift Fund based on the ratio of disbursements. Any monies in the State Higher Education Matching Gift Fund not distributed in any year shall be carried forward for the same purposes in future years and all earnings on monies in the State Higher Education Matching Gift Fund must be retained in the fund and used for its stated purposes."

B. This section takes effect July 1, 1997.

SECTION 22

TO AMEND SECTION 48-48-140, AS AMENDED, OF THE 1976 CODE, RELATING TO THE LOW-LEVEL RADIOACTIVE WASTE DISPOSAL TAX, SO AS TO IMPOSE A CONTINGENT LICENSE TAX ON OPERATORS OF LICENSED LOW-LEVEL RADIOACTIVE WASTE DISPOSAL SITES, TO PROVIDE THE MEASURE OF THE TAX AS AN AMOUNT EQUAL TO POSSIBLE SHORTFALLS IN THE SCHOLARSHIPS PORTION OF THE CHILDREN'S EDUCATION ENDOWMENT FUND, THE TIME OF PAYMENT, METHOD OF COLLECTION, AND DISPOSITION OF THE REVENUE.

A. Section 48-48-140 of the 1976 Code, as last amended by Section 4A, Part II, Act 458 of 1996, is further amended by adding an appropriately lettered subsection at the end to read:

"(F ) In addition to the disposal tax imposed pursuant to this section, there is imposed a contingent annual license tax on any company which operates a licensed disposal site in this State for the disposal of low-level radioactive waste. The tax is an amount determined as follows:
(1) for the fiscal year beginning July 1, 1996, and ending June 30, 1997, the shortfall, if any, in amounts credited for the fiscal year to the Higher Education Scholarship Grants portion of the Children's Education Endowment Fund and twenty-two million dollars;
(2) for the fiscal year beginning July 1, 1997, and ending June 30, 1998, an amount calculated as provided in item (1), except that the applicable fiscal year is 1997-98 and the applicable amount is twenty-three million dollars;
(3) for fiscal years beginning after June 30, 1998, an amount as determined in item (1), except that the applicable fiscal year is the then current fiscal year and the applicable amount is twenty-four million dollars.
The tax imposed by this subsection is due and payable at the same time provided for the payment of the disposal fee provided pursuant to subsection (B), calculated proportionately over the fiscal year. Underpayments or overpayments in a year must be reflected by an adjusted payment for the first quarter of the succeeding fiscal year.
The tax imposed by this subsection is enforceable as provided in Chapter 54 of Title 12.
Notwithstanding the provisions of this subsection, the entire contingent license tax due for Fiscal Year 1996-97 and the estimated contingent license tax due for the first quarter of Fiscal Year 1997-98 are due and payable before January 31, 1998.
Notwithstanding the provisions of Section 59-143-10, the amount of earned revenue for the Higher Education Scholarship Grants portion for Fiscal Year 1996-97 must be increased by the contingent annual license tax due and payable by January 31, 1998.
Revenue of the contingent license tax imposed by this section must be credited to the Higher Education Scholarship Grants portion of the Children's Education Endowment Fund."

B. This section takes effect upon approval by the Governor and first applies for the contingent license tax due for Fiscal Year 1996-97.

SECTION 23

TO REPEAL SECTION 44-1-120 OF THE 1976 CODE RELATING TO THE ANNUAL REPORT BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO THE GENERAL ASSEMBLY.

A. Section 44-1-120 of the 1976 Code is repealed.

B. This section takes effect July 1, 1997.

SECTION 24

DELETED

SECTION 25

DELETED (RULED NON-GERMANE)

SECTION 26

DELETED

SECTION 27

TO AMEND SECTION 14-5-610, AS AMENDED, OF THE 1976 CODE, RELATING TO CIRCUIT COURTS AND CIRCUIT COURT JUDGES, SO AS TO ADD AN ADDITIONAL JUDGE FOR THE FIRST, THIRTEENTH, AND SIXTEENTH CIRCUITS; AND TO AMEND SECTION 20-7-1410, AS AMENDED, RELATING TO THE FAMILY COURTS AND FAMILY COURT JUDGES, SO AS TO ADD AN ADDITIONAL JUDGE FOR THE FIRST, NINTH, AND THIRTEENTH CIRCUITS, TO PROVIDE FOR THE DATE THESE JUDGES TAKE OFFICE, AND TO FURTHER PROVIDE FOR THE RESIDENCY REQUIREMENTS FOR CERTAIN OF THESE FAMILY COURT JUDGES.

A. Section 14-5-610 of the 1976 Code, as last amended by Part II, Section 85A of Act 145 of 1995, is further amended to read:

"Section 14-5-610. The State is divided into sixteen judicial circuits as follows:
(1) The first circuit is composed of the counties of Calhoun, Dorchester, and Orangeburg.
(2) The second circuit is composed of the counties of Aiken, Bamberg, and Barnwell.
(3) The third circuit is composed of the counties of Clarendon, Lee, Sumter, and Williamsburg.
(4) The fourth circuit is composed of the counties of Chesterfield, Darlington, Marlboro, and Dillon.
(5) The fifth circuit is composed of the counties of Kershaw and Richland.
(6) The sixth circuit is composed of the counties of Chester, Lancaster, and Fairfield.
(7) The seventh circuit is composed of the counties of Cherokee and Spartanburg.
(8) The eighth circuit is composed of the counties of Abbeville, Greenwood, Laurens, and Newberry.
(9) The ninth circuit is composed of the counties of Charleston and Berkeley.
(10) The tenth circuit is composed of the counties of Anderson and Oconee.
(11) The eleventh circuit is composed of the counties of Lexington, McCormick, Saluda, and Edgefield.
(12) The twelfth circuit is composed of the counties of Florence and Marion.
(13) The thirteenth circuit is composed of the counties of Greenville and Pickens.
(14) The fourteenth circuit is composed of the counties of Allendale, Hampton, Colleton, Jasper, and Beaufort.
(15) The fifteenth circuit is composed of the counties of Georgetown and Horry.
(16) The sixteenth circuit is composed of the counties of York and Union.
One judge must be elected from the first, second, sixth, and twelfth, and sixteenth circuits. Two judges must be elected from the first, third, fourth, seventh, eighth, tenth, eleventh, fourteenth, and fifteenth, and sixteenth circuits. Three judges must be elected from the fifth, and ninth, and thirteenth circuits. Four judges must be elected from the thirteenth circuit.
In addition to the above judges authorized by this section, there must be thirteen additional circuit judges elected by the General Assembly from the State at large for terms of office of six years. These additional judges must be elected without regard to county or circuit of residence. Each office of the at-large judges is a separate office and is assigned numerical designations of Seat No. 1 through Seat No. 13 respectively."

B. Section 20-7-1410 of the 1976 Code, as last amended by Part II, Section 85E Act 145 of 1995, is further amended to read:

"Section 20-7-1410. The General Assembly shall elect a number of family court judges from each judicial circuit as follows:

  First Circuit             Two Three Judges
  Second Circuit            Two Judges
  Third Circuit             Three Judges
  Fourth Circuit            Three Judges
  Fifth Circuit             Four Judges
  Sixth Circuit             Two Judges
  Seventh Circuit           Three Judges
  Eighth Circuit            Three Judges
  Ninth Circuit             Five Six Judges
  Tenth Circuit             Three Judges
  Eleventh Circuit          Three Judges
  Twelfth Circuit           Three Judges
  Thirteenth Circuit        Five Six Judges
  Fourteenth Circuit        Three Judges
  Fifteenth Circuit         Three Judges
  Sixteenth Circuit         Two Judges
In the following judicial circuits at least one family court judge must be a resident of each county in the circuit: fifth, seventh, ninth, tenth, twelfth, thirteenth, fifteenth, and sixteenth. In those judicial circuits made up of three or more counties at least one family court judge must be a resident of one of the counties which does not have the largest population in the circuit. In the ninth circuit, both counties in the circuit must have at least two resident family court judges.
No county in the sixth circuit shall have more than one resident family court judge."

C. Those additional circuit court and family court judges authorized by the provisions of subsections (A) and (B) of this section shall take office May 17, 1998, and the Judicial Merit Selection Commission on the effective date of this section shall begin the process of nominating candidates for these offices and the General Assembly shall then elect such judges from the nominees of the commission so that these judges may take office on May 17, 1998.

SECTION 28

TO AMEND SECTION 9-8-120, AS AMENDED, OF THE 1976 CODE, RELATING TO THE RETURN OF BENEFICIARIES TO STATE SERVICE AND THE PRACTICE OF LAW FOR MEMBERS OF THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH A RETIRED JUDGE OR JUSTICE MUST MAKE AN ELECTION TO PRACTICE LAW OR BE ELIGIBLE FOR APPOINTMENT TO SERVE IN THE COURTS OF THIS STATE AND TO PROVIDE THAT AN ELECTION TO PRACTICE LAW IS IRREVOCABLE.

A. Section 9-8-120(4) of the 1976 Code, as last amended by Section 5, Part III, Act 610 of 1990, is further amended to read:

"(4) A justice or judge drawing retirement compensation who engages in the practice of law may not serve as a justice or judge in any court in this State. Within thirty days of his retirement under this chapter, a retired judge or justice shall make an irrevocable election as to whether he wishes to engage in the practice of law or be eligible for appointment by the Chief Justice as a judge or justice in the courts of this State. If his election is to engage in the practice of law, it is irrevocable and he may not thereafter be appointed by the Chief Justice to serve as a justice or judge in the courts of this State. If his election is to be eligible for appointment to serve as a justice or judge in the courts of this State and not to practice law, he may at any time thereafter change such election and decide to engage in the practice of law, at which point his decision becomes irrevocable."

B. This section takes effect July 1, 1997.

SECTION 29

TO AMEND THE 1976 CODE BY ADDING SECTION 38-7-35 SO AS TO PROVIDE THAT ONE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS OF THE REVENUE COLLECTED ANNUALLY PURSUANT TO SECTION 38-7-30, REGARDING THE TAX ON FIRE INSURERS TO COVER EXPENSES OF INSPECTIONS AND INVESTIGATIONS, MUST BE TRANSFERRED TO THE DEPARTMENT OF LABOR, LICENSING AND REGULATION FOR CERTAIN PURPOSES RELATING TO BUILDING CODE ENFORCEMENT OFFICERS AND REQUIRE THE DEPARTMENT TO MAKE AN ANNUAL REPORT.

The 1976 Code is amended by adding:

"Section 38-7-35. (A) One hundred seventy-five thousand dollars of the revenue collected annually pursuant to Section 38-7-30 must be transferred to the Department of Labor, Licensing and Regulation for the purpose of implementing the training, certification, and continuing education program for building codes enforcement officers as provided by law.
(B) The Department of Labor, Licensing and Regulation shall report annually to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee detailing actual program expenditures including, but not limited to, the number of instructors employed, the number of training sessions conducted, and the number of certifications issued. This report must be submitted to the respective chairmen no later than January fifteenth of each year."

SECTION 30

TO AMEND SECTION 2-51-10 OF THE 1976 CODE, RELATING TO THE JOINT LEGISLATIVE STUDY COMMITTEE ON THE AGING, SO AS TO REQUIRE COMMITTEE STAFF SUPPORT TO BE PROVIDED BY THE STATE REORGANIZATION COMMISSION AND TO DELETE THE AUTHORIZATION FOR MILEAGE, SUBSISTENCE, AND PER DIEM FOR MEMBERS AND THE REFERENCE TO THE COMMITTEE'S ANNUAL APPROPRIATION.

A. Section 2-51-10 of the 1976 Code is amended to read:

"Section 2-51-10. There is created a permanent committee to conduct continuing studies of public and private services, programs, and facilities for the Aging in South Carolina and report its findings and recommendations annually to the General Assembly. Three members shall must be appointed from the Senate by the President thereof, three members shall must be appointed from the House of Representatives by the Speaker, and three members shall must be appointed by the Governor. Terms of legislative members shall be are coterminous with the term of the appointing Governor. Members of the committee shall receive mileage, per diem, and subsistence as provided by law for members of boards, committees and commissions. Expenses of the committee shall be provided by an annual appropriation in the General Appropriation Act. The Legislative Council shall provide such legal services as the committee may require in the performance of its duties. From funds appropriated to the State Reorganization Commission in the General Appropriations Act for Fiscal Year 1997-98 and subsequent years, the commission shall provide all other staff support for the committee."

B. This section takes effect July 1, 1997.

SECTION 31

TO AMEND THE 1976 CODE BY ADDING SECTION 59-130-35 SO AS TO AUTHORIZE THE BOARD OF TRUSTEES OF THE COLLEGE OF CHARLESTON, WITH THE CONSENT OF THE BUDGET AND CONTROL BOARD, TO SELL REMLEY'S POINT WHICH IT OWNS IN CHARLESTON COUNTY DURING FISCAL YEAR 1997-98 OR THEREAFTER, AND TO PROVIDE THAT CERTAIN FUNDS APPROPRIATED TO THE COLLEGE IN SECTION 18E, PART I OF THIS ACT, AFTER THIS PROPERTY IS SOLD SHALL BE USED FOR THE PURPOSE OF ACQUIRING THROUGH LEASE OR PURCHASE ADDITIONAL REAL AND PERSONAL PROPERTY IN CHARLESTON COUNTY WHICH SHALL BE USED FOR ATHLETIC, INTRAMURAL, OR SPORTS PROGRAMS OF THE COLLEGE, AND TO PROVIDE THAT THE PROCEEDS DERIVED FROM THIS SALE SHALL BE RETAINED BY THE COLLEGE AND USED TO REIMBURSE THE APPROPRIATION WHICH WAS USED TO FUND THIS PURCHASE.

A. The 1976 Code is amended by adding:

"Section 59-130-35. (A) Pursuant to item (4) of Section 59-130-30, the board of trustees of the College of Charleston, with the consent of the Budget and Control Board, is authorized to sell Remley's Point which it owns in Charleston County during fiscal year 1997-98 or thereafter for such price and under such terms and conditions as the board considers appropriate. The funds appropriated to the college for other operating expenses on line 13, Section 18E, Part I of this act, after this property is sold shall be used by the college for the purpose of acquiring through lease or purchase additional real and personal property in Charleston County which shall be used for athletic, intramural, or sports programs of the college. The proceeds derived from this sale shall be retained by the college and used to reimburse the appropriation which was used as provided above to fund this purchase.
(B) Remley's Point for purposes of this section is described as follows:

'All that certain piece, parcel or tract of land, situate, lying and being in Christ Church Parish in the County of Charleston, State aforesaid, containing 17.32 acres of highland and 15 acres of marshlands, be the same more or less, more particularly shown and delineated on a plat thereof entitled 'Plat of 17.32 acres in Christ Church Parish, Charleston County, State aforesaid conveyed by the Estates of W. A. Leland and W. R. Bonsal to the College of Charleston', surveyed August 6, 1975, by W. L. Gaillard, Surveyor.'

The property is further identified on Charleston County Tax Map 514-05-00 as parcel number 6."

SECTION 32

TO AMEND SECTION 56-3-2350, AS AMENDED, OF THE 1976 CODE, RELATING TO TRANSPORTER MOTOR VEHICLE LICENSE PLATES, SO AS TO LIMIT THEIR USE TO MOVEMENT OF MOTOR VEHICLES FROM A MANUFACTURER TO A DEALER OR DISTRIBUTOR, IN CONNECTION WITH THE CONSTRUCTION OF VEHICLE CABS OR BODIES, AND MOVING FORECLOSED OR REPOSSESSED VEHICLES AND TO PROHIBIT THE USE OF THESE PLATES ON VEHICLES LOANED, RENTED, OR LEASED TO EMPLOYEES OF THE TRANSPORTER OR ANY OTHER INDIVIDUALS; TO AMEND SECTION 56-19-220, RELATING TO EXEMPTIONS FROM MOTOR VEHICLE TITLING REQUIREMENTS, SO AS TO EXEMPT CERTAIN VEHICLES USED BY AN AUTOMOBILE MANUFACTURER IN ITS EMPLOYEE BENEFIT PROGRAM OR FOR TESTING AND PROMOTIONAL PURPOSES; AND BY ADDING SECTION 56-3-2332 SO AS TO AUTHORIZE THE DEPARTMENT OF PUBLIC SAFETY TO ISSUE REGULAR LICENSE PLATES FOR CERTAIN VEHICLES USED IN AN AUTOMOBILE MANUFACTURER'S EMPLOYEE BENEFIT PROGRAM OR FOR TESTING AND PROMOTIONAL PURPOSES, TO PROVIDE AN ANNUAL FEE OF SIX HUNDRED NINETY SEVEN DOLLARS AND FORTY-SIX CENTS FOR THESE PLATES, AND TO PROVIDE FOR THE DISTRIBUTION OF THE FEE REVENUE, AND TO PROVIDE FOR REEVALUATING THE ANNUAL FEE.

A. Section 56-3-2350 of the 1976 Code, as amended by Act 497 of 1994, is further amended to read:

"Section 56-3-2350. A person engaged in a the business of limited operation of motor vehicles to facilitate the manufacture or the movement of vehicles from a manufacturer to a dealer or distributor, or for the movement of vehicles to further the construction of cabs or bodies, or in connection with the foreclosure or repossession of these motor vehicles may apply to the department for special registration to be issued to and used by the person upon the following conditions:
(1) The application must be in a form prescribed by the department to include the applicable liability insurance as prescribed by statute and filed with the department each year. The application must include the name and residence address of the applicant as follows:
(a) if an individual, the name under which he intends to conduct business;
(b) if a partnership, the name and residence address of each member of the partnership and the name under which the business is to be conducted;
(c) if a corporation, the name and company addresses of the corporation and the name and residence address of each of its officers.
(2) The application must be certified by the applicant and by an agent of the department to verify the facts set forth in the application.
(3) The annual fee for registration is fifty dollars, plus an annual fee of ten dollars for each license plate.
(4) License plates authorized by this section must not be used on vehicles that are loaned, rented, or leased by the licensed transporter to employees or any other individuals."

B. Section 56-19-220 of the 1976 Code is amended by adding at the end:

"(10) A vehicle used by its manufacturer in a benefit program for the manufacturer's employees.
(11) A vehicle used by its manufacturer for testing, distribution, evaluation, and promotion, subject to the limitation in Section 56-3-2332(B)(2)."

C. Article 25, Chapter 3, Title 56 of the 1976 Code is amended by adding:

"Section 56-3-2332. (A) Upon application and payment of the required fee, the department may issue a standard license plate to a manufacturer for vehicles it has manufactured and which are used in a benefit program for the manufacturer's employees or used by the manufacturer for testing, distribution, evaluation, and promotion.
(B) The annual registration fee for this plate is six hundred ninety-seven dollars and forty-six cents.
(1) The plates issued in connection with an employee benefit program may be used only on vehicles provided for the applicant's employees. In the application, the manufacturer shall notify the department in which county the employee assigned the vehicle resides. Twenty dollars of the fee must be credited to the general fund of the State and six hundred seventy-seven dollars and forty-six cents must be remitted to the county noted on the application. Amounts received by a county pursuant to this subsection must be credited to the accounts of taxing entities in the county as if it were a county property tax and are instead of state sales or use taxes. If the employee resides outside this State, the fee must be credited pro rata to all other counties due amounts under this section. The names and addresses of the employees are not required to be submitted to the department, but the department may require the documentation it determines necessary to ensure compliance with the provisions of this section.
(2) The plates issued in connection with testing, distribution, evaluation, and promotion, not to exceed fifty plates, may be used only for those purposes. Twenty dollars of the fee must be credited to the general fund of the State and six hundred seventy-seven dollars and forty-six cents must be remitted to the county in which the principal facility of the manufacturer is located. Amounts received by a county pursuant to this subsection must be credited to the accounts of taxing entities in the county as if it were a county property tax and are instead of state sales or use taxes. The department may require the documentation it determines necessary to ensure compliance with the provisions of this subsection.
(C) The annual registration fee provided for in this section is derived by computing the average price of the vehicle manufacturer's fleet times the property tax rate times the state's average millage rate. Before December thirty-first of each odd numbered year, the manufacturer shall review the average price of its fleet and submit the cost to the House Ways and Means Committee and the Senate Finance Committee. The annual registration fee must be adjusted to reflect changes in the average cost of the manufacturer's fleet, the state's average millage rate, and the property tax rate. Any adjustment must be reflected in the annual appropriations act."

SECTION 33

DELETED

SECTION 34

DELETED

SECTION 35

DELETED

SECTION 36

TO AMEND SECTION 8-21-310, AS AMENDED, OF THE 1976 CODE, RELATING TO THE SCHEDULE OF FEES TO BE COLLECTED BY CLERKS OF COURT AND REGISTERS OF MESNE CONVEYANCES, SO AS TO INCREASE THE FEE FOR FILING COMPLAINTS OR PETITIONS IN CIVIL ACTIONS IN A COURT OF RECORD FROM FIFTY-FIVE DOLLARS TO SEVENTY DOLLARS; BY ADDING SECTION 14-1-204 SO AS TO PROVIDE FOR THE MANNER IN WHICH THE ABOVE SEVENTY DOLLAR FILING FEE SHALL BE DISTRIBUTED; AND TO AMEND SECTION 14-1-205, RELATING TO THE DISPOSITION OF CERTAIN COSTS, FEES, AND FINES GENERATED BY THE CIRCUIT COURT AND FAMILY COURT, SO AS TO PROVIDE THAT THE ABOVE SEVENTY DOLLAR FILING FEE IS NOT SUBJECT TO THE DISPOSITION PROVISIONS OF THIS SECTION.

A. Section 8-21-310(11)(a) of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read:

"(11)(a) For filing first complaint or petition, including application for a remedial and prerogative writ and bond on attachment or other bond, in a civil action or proceeding, in a court of record, fifty-five seventy dollars. There is no further fee for filing an amended or supplemental complaint or petition nor for filing any other paper in the same action or proceeding. An original application for postconviction relief may be filed without fee upon permission of the court to which the application is addressed. There is no further fee for entering and filing a verdict, judgment, final decree, or order of dismissal, and enrolling a judgment thereon, for signing, sealing, and issuance of execution, or for entering satisfaction or partial satisfaction on a judgment."

B. The 1976 Code is amended by adding:

"Section 14-1-204. The seventy dollar filing fee for documents and actions described in Section 8-21-310(11)(a) must be remitted to the county in which the proceeding is instituted and fifty-six percent of these filing fee revenues must be delivered to the county treasurer to be remitted monthly by the fifteenth day of each month to the State Treasurer. When a payment is made to the county in installments, the State's portion must be remitted to the State Treasurer by the county treasurer on a monthly basis.
The fifty-six percent of the seventy dollar fee prescribed in Section 8-21-310(11)(a) remitted to the State Treasurer must be deposited as follows:
(1) 45.03 percent to the state general fund;
(2) 10.33 percent to the Department of Mental Health to be used exclusively for the treatment and rehabilitation of drug addicts within the department's addiction center facilities;
(3) 6.38 percent to the State Office of Victim Assistance under the South Carolina Victim's Compensation Fund; and
(4) 38.26 percent to the Defense of Indigents Per Capita Fund, administered by the Commission on Indigent Defense, which shall then distribute these funds on December thirty-first and on June thirtieth of each year to South Carolina organizations that are grantees of the Legal Services Corporation, in amounts proportionate to each recipient's share of the state's poverty population."

C. Section 14-1-205 of the 1976 Code, as added by Part II, Section 36A, Act 497 of 1994, is amended to read:

"Except as provided in Sections 17-15-260, 34-11-90, 50-1-150, 50-1-170, and 56-5-4160, on January 1, 1995, 56 fifty-six percent of all costs, fees, fines, penalties, forfeitures, and other revenues generated by the circuit courts and the family courts, except the seventy dollar filing fee prescribed in Section 8-21-310(11)(a) must be remitted to the county in which the proceeding is instituted and 44 forty-four percent of the revenues must be delivered to the county treasurer to be remitted monthly by the fifteenth day of each month to the State Treasurer on forms and in a manner prescribed by him. When a payment is made to the county in installments, the state's portion must be remitted to the State Treasurer by the County Treasurer on a monthly basis. The 44 forty-four percent remitted to the State Treasurer must be deposited as follows:
(1) 72.93 percent to the general fund;
(2) 16.73 percent to the Department of Mental Health to be used exclusively for the treatment and rehabilitation of drug addicts within the department's addiction center facilities;
(3) 10.34 percent to the State Office of Victim Assistance under the South Carolina Victim's Compensation Fund.
In any court, when sentencing a person convicted of an offense which has proximately caused physical injury or death to the victim, the court may order the defendant to pay a restitution charge commensurate with the offense committed, not to exceed ten thousand dollars, to the Victim's Compensation Fund."

D. This section takes effect July 1, 1997.

SECTION 37

TO AMEND THE 1976 CODE BY ADDING SECTION 56-5-2995 SO AS TO IMPOSE AN ADDITIONAL ASSESSMENT OF TWELVE DOLLARS ON PERSONS CONVICTED OF A FIRST OFFENSE IN MAGISTRATE'S OR MUNICIPAL COURT OF DRIVING UNDER THE INFLUENCE OF INTOXICATING LIQUORS OR DRUGS AND TO IMPOSE AN ADDITIONAL ASSESSMENT OF TWELVE DOLLARS ON PERSONS CONVICTED OF A SECOND OR SUBSEQUENT DUI OFFENSE OR A FELONY DUI OFFENSE IN GENERAL SESSIONS COURT; AND BY ADDING SECTION 14-1-201 SO AS TO PROVIDE FOR THE MANNER IN WHICH THESE TWELVE DOLLAR ASSESSMENTS MUST BE DISTRIBUTED AND USED.

A. The 1976 Code is amended by adding:

"Section 56-5-2995. (A) In addition to the penalties imposed for a first offense violation of Section 56-5-2930 in magistrate's or municipal court, an additional assessment of twelve dollars must be added to any punishment imposed which must be remitted to the State Treasurer who shall then distribute the twelve dollar assessments in the manner provided in Section 14-1-201.
(B) In addition to the penalties and assessments imposed for a second or subsequent violation of Section 56-5-2930 or a violation of Section 56-5-2945 in general sessions court, an additional assessment of twelve dollars must be added to any punishment imposed which must be remitted to the State Treasurer who shall then distribute these twelve dollar assessments in the manner provided in Section 14-1-201."

B. The 1976 Code is amended by adding:

"Section 14-1-201. The revenue from the twelve dollar additional assessments imposed pursuant to Section 56-5-2995 must be distributed as follows:
(1) eighty-four percent to the Department of Disabilities and Special Needs for the Head and Spinal Cord Injuries Family Support Program; and
(2) sixteen percent to the Department of Health and Environmental Control for Emergency Medical Services - Aid to Counties, restricted."

C. This section takes effect July 1, 1997.

SECTION 38

DELETED

SECTION 39

TO AMEND ACT 152 OF 1995, RELATING TO THE SOUTH CAROLINA COMMISSION ON SPORTING DOGS AND FIELD TRIALS, SO AS TO REQUIRE THE COMMISSION TO DEVELOP FEES FOR FACILITY USE AND DOG ENTRIES IN ORDER TO ENABLE THE H. COOPER BLACK, JR. MEMORIAL FIELD TRIAL RECREATIONAL AREA TO BE SELF-SUSTAINING, AND TO PROVIDE FOR AND TO REQUIRE A REPORT ON THE COLLECTION AND USE OF THESE FEES.

Section 1 of Act 152 of 1995 is amended by adding:

"(E) The state plan shall include a fee schedule including, but not limited to a facility use fee, dog entry fees, and any other fees the commission deems necessary to enable the H. Cooper Black, Jr. Memorial Field Trial and Recreational Area to be self-sustaining beginning July 1, 1999.
These fees are in addition to the utility fee charged by the South Carolina Forestry Commission. Revenue received must be deposited in the H. Cooper Black, Jr. Memorial Field Trial and Recreational Area line item within the South Carolina Forestry Commission's budget and must be used cooperatively with the Department of Natural Resources and Parks, Recreation and Tourism for personal service funds, infrastructure, maintenance, enhancement, and operation of the field trial area program in conjunction with the commission. A report of fees collected and disbursements made during FY 97-98 must be made to the Senate Finance Committee and the House Ways and Means Committee by August 31, 1998."

SECTION 40

DELETED

SECTION 41

DELETED

SECTION 42

TO AMEND THE 1976 CODE BY ADDING SECTION 1-11-470 SO AS TO PROHIBIT A CONSTITUTIONAL OFFICER FROM EXPENDING MONIES APPROPRIATED BY THE GENERAL ASSEMBLY TO PURCHASE SPACE INCLUDING, BUT NOT LIMITED TO, NOTICES OR ADVERTISEMENTS, IN A PRINT MEDIUM OR TIME FROM A RADIO OR TELEVISION MEDIUM WITHOUT UNANIMOUS PRIOR WRITTEN APPROVAL OF THE STATE BUDGET AND CONTROL BOARD, PROHIBIT A CONSTITUTIONAL OFFICER FROM HAVING PRINTED ON, OR DISTRIBUTED WITH, EXTRANEOUS PROMOTIONAL MATERIAL AND FROM PURCHASING PLAQUES, AWARDS, CITATIONS, OR OTHER RECOGNITIONS WITHOUT PRIOR UNANIMOUS WRITTEN APPROVAL OF THE STATE BUDGET AND CONTROL BOARD, REQUIRE CONSTITUTIONAL OFFICERS EXPENDING NONPUBLIC FUNDS TO SUBMIT THE SOURCE OF THE FUNDS SHOWING ALL CONTRIBUTORS TO THE STATE BUDGET AND CONTROL BOARD, AND PROVIDE EXCEPTIONS; AND TO PROVIDE THAT CERTAIN FUNDS MUST BE USED TO PROVIDE STAFF TO REVIEW ANDMAKE RECOMMENDATIONS TO THE BUDGET AND CONTROL BOARD FOR APPROVAL OF A CONSTITUTIONAL OFFICER'S PLAN.

A. The 1976 Code is amended by adding:

"Section 1-11-470. (A) No funds appropriated by the General Assembly may be used by a constitutional officer to purchase space including, but not limited to, notices or advertisements, in a print medium or time from a radio or television medium without unanimous prior written approval of the Budget and Control Board.
(B) No funds appropriated by the General Assembly may be used by a constitutional officer to print on, or distribute with, official documents extraneous promotional material or to purchase plaques, awards, citations, or other recognitions without unanimous prior written approval of the Budget and Control Board.
(C) If nonpublic funds are used for the purposes enumerated in subsection (A), the constitutional officer expending the funds must submit the source of the funds showing all contributors to the Budget and Control Board before the funds are expended.
(D) The provisions of this section do not apply to the Governor or to the General Assembly."

B. Of the funds appropriated to the Budget and Control Board - Division of Operations for the Office of General Services in the annual appropriations act for 1997-98 and subsequent years for administration, other operating expenses, and classified positions, sufficient funds must be used to provide staff to review and make recommendations to the Budget and Control Board for approval of a constitutional officer's plan.

C. This section takes effect July 1, 1997.

SECTION 43

TO AMEND SECTIONS 12-4-380 AND 12-54-240 OF THE 1976 CODE, RELATING TO REQUIREMENT THAT THE DEPARTMENT OF REVENUE REPORT TO THE GENERAL ASSEMBLY ALL TAX LIABILITIES REDUCED BY ORDER OF THE DIRECTOR, SO AS TO REQUIRE THE REPORT BE MADE TO THE CHAIRMEN OF THE SENATE FINANCE AND HOUSE WAYS AND MEANS COMMITTEES AS TO TAX LIABILITIES REDUCED BY ORDER OF THE DIRECTOR.

A. Section 12-4-380 of the 1976 Code, as added by Section 99A, Part II, Act 458 of 1996, is amended to read:

"Section 12-4-380. Within thirty days of final settlement, the department annually shall report to the General Assembly on the revenue impact of policy documents prescribed, amended, or revoked in the most recently completed fiscal year and in the report shall provide detail on Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee, the details of all tax liabilities reduced by order of the director."

B. Section 12-54-240(B) of the 1976 Code, as last amended by Section 24 of Act 459 of 1996, is further amended by adding:

"(18) disclosure of information to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee pursuant to Section 12-4-380."

C. This section takes effect July 1, 1997.

SECTION 44

TO AMEND SECTION 12-37-935 OF THE 1976 CODE, RELATING TO DEPRECIATION ALLOWED IN CALCULATING THE VALUE OF CERTAIN EQUIPMENT FOR PURPOSES OF PROPERTY TAX, SO AS TO PHASE IN THE ADDITIONAL DEPRECIATION ALLOWED OVER FOUR RATHER THAN THREE YEARS.

A. Section 12-37-935(A) of the 1976 Code, as added by Section 8A, Part II, Act 458 of 1996, is amended to read:

"(A) Except as provided in Section 12-37-930 for custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals, and equipment used in the manufacture of tires by manufacturers who employ more than five thousand employees in this State and have over one billion dollars in capital investment in this State, the original cost must not be reduced more than the percentage provided in the following schedule:

   Property Tax Year  Maximum Percentage Depreciation
    Before 1997                  80  percent
    1997                   83.3  81.65  percent
    1998                   86.6  84.43  percent
    1999                         87.21  percent
    After 1998 1999              90  percent."
B. This section is effective for property tax years beginning after 1996.

SECTION 45

TO AMEND SECTION 61-6-2010, AS AMENDED, OF THE 1976 CODE, RELATING TO SUNDAY MINIBOTTLE SALES, SO AS TO CLARIFY THAT BOTH FILING AND PERMIT FEES MUST BE DISTRIBUTED TO THE AFFECTED COUNTIES AND MUNICIPALITIES FOR THE PURPOSES ALLOWED BY LAW.

A. That portion of Section 61-6-2010(B)(1) which precedes subitem (a), as amended by Section 24B of Act 462 of 1996, is further amended to read:

"(1) The filing and permit fees must be distributed to the municipality or county in which the retailer who paid the fee is located. The revenue may only be used only by the municipality or county for the following purposes:"

B. This section has the same effective date as provided in Section 24B of Act 462 of 1996.

SECTION 46

TO AMEND THE 1976 CODE BY ADDING SECTION 23-6-95 SO AS TO PROVIDE THAT A PORTION OF THE DEPARTMENT OF PUBLIC SAFETY'S ANNUAL APPROPRIATION MUST BE TRANSFERRED TO MIDLANDS TECHNICAL COLLEGE TO FUND THE MOTORCYCLE RIDER SAFETY EDUCATION PROGRAM.

A. The 1976 Code is amended by adding:

"Section 23-6-95. One hundred thousand dollars of the Department of Public Safety's annual appropriation from the General Assembly must be transferred to Midlands Technical College to fund the Motorcycle Rider Safety Education Program."

B. This section takes effect on July 1, 1997.

SECTION 47

TO AMEND SECTION 24-3-960, AS AMENDED, OF THE 1976 CODE, RELATING TO THE UNLAWFUL POSSESSION OF MONIES BY CERTAIN PRISONERS AND THEIR SEIZURE AND RETENTION BY THE DEPARTMENT OF CORRECTIONS, SO AS TO PROVIDE THAT MONIES SEIZED MUST BE USED TO AID DRUG INTERDICTION EFFORTS UNDERTAKEN BY THE DEPARTMENT.

A. Section 24-3-960 of the 1976 Code, as last amended by Act 181 of 1993 is further amended to read:

"Section 24-3-960. Any moneys Monies or tokens or things of like nature used as money found in the unlawful possession of any a prisoner confined in a penal institution under control of the Department of Corrections are hereby declared to be is contraband, and any moneys monies or tokens or things of like nature used as money so seized shall must be deposited in the welfare a fund maintained by the department of the institution in which the prisoner is confined and shall be is the property of such welfare the fund. This fund must be used to aid drug interdiction efforts undertaken by the department."

B. This section takes effect July 1, 1997.

SECTION 48

DELETED

SECTION 49

DELETED

SECTION 50

TO AMEND SECTION 12-28-2740 OF THE 1976 CODE, RELATING TO DISTRIBUTION OF MOTOR FUEL TAX PROCEEDS AMONG COUNTIES, SO AS TO CHANGE THE DATE FOR SUBMISSION OF THE PERCENTAGE REPRESENTED BY EACH COUNTY FROM MARCH 31 TO MAY 1 AND TO PROVIDE A TRANSITION SCHEDULE.

A. Section 12-28-2740(A) of the 1976 Code, as added by Act 136 of 1995, is amended to read:

"(A) The proceeds from two and sixty-six one-hundredths cents a gallon of the tax on gasoline only as levied and provided for in this chapter must be deposited with the State Treasurer and expended for purposes set forth in this section. The monies must be apportioned among the counties of the State in the following manner:
(1) one-third distributed in the ratio which the land area of the county bears to the total land area of the State;
(2) one-third distributed in the ratio which the population of the county bears to the total population of the State as shown by the latest official decennial census;
(3) one-third distributed in the ratio which the mileage of all rural roads in the county bears to the total rural road mileage in the State as shown by the latest official records of the Department of Transportation; The Department of Revenue shall collect the information required pursuant to Section 12-28-2510 12-28-1390 regarding the number of gallons sold in each county for use in making allocations of donor funds as provided in subsection (H). The Department of Revenue shall submit the percentage of the total represented by each county to the Department of Transportation and to each county transportation committee annually by March thirty-first May first of the following calendar year. Upon request of a county transportation committee, the Department of Transportation shall continue to administer the funds allocated to the county;
(4) for distribution in 1997, a transitional year as the result of the change of date for reporting the percentages referenced in item (3) to May first, the Department of Transportation shall use the latest data available from the Department of Revenue, which was derived from sales data for the 1995 calendar year.
All interest earnings on the County Transportation Fund in the State Treasury must be credited to the State Highway Fund."

B. This section takes effect upon July 1, 1997.

SECTION 51

TO AMEND SECTION 12-28-2740, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DISTRIBUTION AND USES OF "C" FUND GASOLINE TAX REVENUES, SO AS TO AUTHORIZE A COUNTY LEGISLATIVE DELEGATION BY RESOLUTION TO ABOLISH THE COUNTY TRANSPORTATION COMMITTEE AND DEVOLVE ITS FUNCTIONS ON THE GOVERNING BODY OF THE COUNTY, TO PROVIDE THAT THIS DEVOLUTION MAY BE REVERSED AND THE COMMITTEE REESTABLISHED PURSUANT TO A SUBSEQUENT DELEGATION RESOLUTION, AND TO PROVIDE THAT THE EXERCISE OF THESE FUNCTIONS BY A COUNTY GOVERNING BODY DOES NOT CONSTITUTE DUAL OFFICE HOLDING .

A. Section 12-28-2740 of the 1976 Code, as last amended by Act 515 of 1996, is further amended by adding an appropriately lettered subsection at the end to read:

"( ) Notwithstanding other provisions of this section, the legislative delegation of a county may by delegation resolution abolish the county transportation committee and devolve its powers and duties on the governing body of the county. This devolution may be reversed and the county transportation committee reestablished by a subsequent delegation resolution. The exercise of county transportation committee powers and duties by a county governing body is not deemed to constitute dual office holding."

B. This section takes effect upon approval by the Governor.

SECTION 52

DELETED

SECTION 53

TO AMEND SECTIONS 59-114-30, 59-114-40, AND 59-114-70 OF THE 1976 CODE, RELATING TO THE SOUTH CAROLINA NATIONAL GUARD TUITION ASSISTANCE ACT, SO AS TO INCREASE THE AMOUNT QUALIFYING MEMBERS MAY RECEIVE; TO DELETE FROM GRANT ELIGIBILITY ATTENDANCE AT HIGH SCHOOL AND GRADUATE SCHOOL; AND TO REQUIRE TUITION ASSISTANCE PAYMENTS BE PAID AS REIMBURSEMENTS TO GUARD MEMBERS IN GOOD STANDING WHO SUCCESSFULLY COMPLETE THE REQUIRED HOURS OF COURSE WORK AT AN ELIGIBLE INSTITUTION.

A. Section 59-114-30 of the 1976 Code is amended to read:

"Section 59-114-30. Qualifying members of the National Guard may receive tuition assistance grants, not to exceed five hundred one thousand dollars per academic year twelve semester hours. No member may qualify for such grants these grants for more than four separate academic years, and a new application must be submitted for each separate academic year for which tuition assistance is sought."

B. Section 59-114-40 of the 1976 Code is amended to read:

"Section 59-114-40. Members of the National Guard enrolled or planning to enroll in an eligible institution may apply to the Adjutant General for tuition assistance. To qualify, an applicant must be seeking:
(a) be seeking to complete his secondary school education;
(b)(1) be seeking trade or vocational training;
(c)(2) be seeking to attain a two-year associate degree;
(d)(3) be seeking to attain a four-year baccalaureate degree;
(e) be seeking to attain a graduate degree.
Additionally, an applicant must have a minimum National Guard service obligation of two years beyond the end of the academic period for which tuition is requested, or must agree in writing to formally incur such this obligation upon approval of the tuition assistance grant and must meet those other criteria established by the Adjutant General by regulation promulgated pursuant to this chapter."

C. Section 59-114-70 of the 1976 Code is amended to read:

"Section 59-114-70. All tuition assistance payments shall must be made directly to the eligible institution for credit to the account of the qualifying member. Eligible institutions receiving tuition assistance payments shall be subject to account to the State Auditor for such monies and the State Auditor shall have authority to examine such record of eligible institutions as are necessary to such accounting qualifying applicant who demonstrates to the Adjutant General successful completion of twelve semester hours or a pro rata share of twelve semester hours at an eligible institution as defined by this chapter."

D. This section takes effect July 1, 1997.

SECTION 54

TO AMEND SECTION 16-19-60 OF THE 1976 CODE, RELATING TO THE NONAPPLICATION OF THE GAMBLING OFFENSES TO COIN-OPERATED NONPAYOUT MACHINES WITH A FREE PLAY FEATURE, SO AS TO CLARIFY THAT THIS PROVISION DOES NOT PROHIBIT REGULATION OF THESE MACHINES, INCLUDING THEIR PROHIBITION, PURSUANT TO THE VIDEO GAMES MACHINES ACT AND ITS COUNTY OPTION PROVISIONS; BY ADDING SECTION 12-21-2783 SO AS TO REQUIRE EACH LOCATION OPERATING VIDEO GAME MACHINES TO PROVIDE A LOCATION CONTROLLER AND MODEM MEETING SPECIFIC REQUIREMENTS; BY ADDING SECTION 12-21-2797 SO AS TO PROVIDE CIVIL PENALTIES FOR PERSONS IN POSSESSION OF OR ALLOWING THE OPERATION OF CONTRABAND OR GRAY AREA MACHINES AFTER DECEMBER 31, 1998, AND TO ESTABLISH PROCEDURES UNDER WHICH CONTRABAND OR GRAY AREA MACHINES SHALL BE EXAMINED AND, IF FOUND TO BE A CONTRABAND MACHINE, DESTROYED; TO AMEND SECTION 12-21-2710, RELATING TO THE TYPES OF COIN-OPERATED MACHINES WHICH ARE PROHIBITED BY LAW, SO AS TO FURTHER PROVIDE FOR THE TYPES OF MACHINES TO WHICH THIS SECTION DOES NOT APPLY; TO AMEND SECTION 12-21-2720, AS AMENDED, RELATING TO LICENSES FOR COIN-OPERATED DEVICES OR MACHINES, SO AS TO REVISE CERTAIN LICENSE FEES AND FURTHER PROVIDE FOR THE USE OF A PORTION OF SPECIFIED FEES; TO AMEND SECTION 12-21-2772, RELATING TO DEFINITIONS IN REGARD TO THE VIDEO GAME MACHINES ACT, SO AS TO REVISE THE DEFINITION OF "CONTRABAND DEVICE/ EQUIPMENT" OR "GRAY AREA MACHINE"; TO AMEND SECTION 12-21-2774, RELATING TO MECHANICAL REQUIREMENTS OF VIDEO GAME MACHINES, SO AS TO FURTHER PROVIDE FOR THESE MECHANICAL REQUIREMENTS; TO AMEND SECTION 12-21-2776, AS AMENDED, RELATING TO REGISTERING AND LICENSING MACHINES UNDER THE VIDEO GAME MACHINES ACT, SO AS TO DELETE REFERENCES TO REGISTRATION AND TO CERTAIN DATE REQUIREMENTS FOR METERING DEVICES, TO FURTHER PROVIDE FOR THE INFORMATION CONCERNING EACH LICENSED MACHINE WHICH MUST BE FURNISHED TO THE DEPARTMENT OF REVENUE, AND TO REQUIRE FILING THIS INFORMATION ON A QUARTERLY BASIS; TO AMEND SECTION 12-21-2791, RELATING TO LIMITATIONS ON PAYOUTS ON MACHINES AS DEFINED UNDER THE VIDEO GAMES MACHINES ACT, SO AS TO DELETE REFERENCES TO GAMBLING PROVISIONS AND PROVIDE THAT TO A PERSON IN A TWENTY-FOUR HOUR PERIOD MAY NOT WIN MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS OVER THE AMOUNT DEPOSITED IN THE MACHINE; TO AMEND SECTION 12-21-2782, AS AMENDED, RELATING TO THE REGULATION BY THE DEPARTMENT OF REVENUE OF VIDEO GAME MACHINES, SO AS TO STIPULATE STANDARDS WHICH CERTAIN MACHINES MUST MEET NO LATER THAN DECEMBER 31, 1998, AND PROVIDE THAT ANY SUCH MACHINE NOT MEETING THESE STANDARDS MUST NOT BE LICENSED; TO AMEND SECTION 12-21-2798, RELATING TO THE PROMULGATION OF RULES AND REGULATIONS BY THE TAX COMMISSION CONCERNING THESE MACHINES, SO AS TO CHANGE THE REFERENCE TO THE "TAX COMMISSION" TO THE "DEPARTMENT OF REVENUE" AND DELETE THE REFERENCE TO RULES; TO AMEND SECTION 12-21-2804, RELATING TO REGULATION OF VIDEO MACHINES, SO AS TO PROVIDE CIVIL PENALTIES FOR MACHINES LOCATED IN COUNTIES WHERE PAYOUTS ARE PROHIBITED, INCLUDING MONETARY PENALTIES, LICENSE REVOCATION, AND SEIZURE OF MACHINES, TO PROVIDE THAT THESE PENALTIES APPLY IMMEDIATELY, AND TO PROVIDE THE SOLE REMEDY FOR THESE PENALTIES; TO AMEND SECTION 12-21-2808, RELATING TO REFERENDUMS ALLOWED IN COUNTIES ON CONTINUING OR PROHIBITING CASH PAYOUTS, SO AS TO DELETE REFERENCES TO GAMBLING PROVISIONS, DELETE OBSOLETE PROVISIONS, AND MAKE OTHER TECHNICAL REVISIONS; TO AMEND SECTION 12-21-2809, RELATING TO THE PROHIBITIONS ON LICENSING AND LOCATING MACHINES IN NONPAYOUT COUNTIES, SO AS TO DELETE CRIMINAL PENALTIES FOR VIOLATIONS AND SUBJECT VIOLATORS TO THE CIVIL PENALTIES PROVIDED BY THIS ACT AND TO PROVIDE THAT THE PENALTY EXTENDS TO OWNING OR POSSESSING THESE MACHINES; TO PROVIDE THAT COUNTIES IN WHICH A MAJORITY "NO" VOTE WAS CERTIFIED IN THE REFERENDUM PROVIDED PURSUANT TO SECTION 12-21-2806 ARE DEEMED TO HAVE MADE THAT CHOICE PURSUANT TO SECTION 12-21-2808, AS AMENDED BY THIS ACT, WITH AUTHORIZATION FOR THE DEPARTMENT OF REVENUE TO ISSUE PRORATED REFUNDS FOR MACHINES LICENSED IN SUCH COUNTIES; AND TO AMEND SECTION 12-54-40, AS AMENDED, RELATING TO PENALTIES FOR FAILURE TO COMPLY WITH CERTAIN TAX LAWS, SO AS TO PROVIDE THAT IT IS A FELONY FOR A VIDEO GAME MACHINE OWNER OR DISTRIBUTOR TO ALLOW OR CAUSE A VIDEO GAME MACHINE TO BE OPERATED WITHOUT A METERING DEVICE OR TO WILFULLY PLACE SUCH A MACHINE ON LOCATION WITHOUT A DEVICE, THAT RECORDS THE INFORMATION REQUIRED BY LAW AND TO PROVIDE PENALTIES FOR VIOLATION; AND TO REPEAL SECTIONS 12-21-2796 AND 21-21-2806 RELATING TO THE UNLAWFUL PLACEMENT OR OPERATION OF AN UNMETERED MACHINE AND THE INITIAL REFERENDUM ON CONTINUING CASH PAYOUTS.

A. Section 16-19-60 of the 1976 Code is amended to read:

"Section 16-19-60. Nothing in Section 16-19-40 or 16-19-50 shall extend to coin-operated nonpayout machines with a free play feature; provided, that nothing herein shall authorize the licensing, possession, or operation of any machine which disburses money to the player. Nothing in this section prohibits regulation of video games pursuant to Article 20, Chapter 21, Title 12, the Video Games Machines Act, including the prohibition on payoffs and location of these machines in counties where such payouts and machines are prohibited under the local option provisions of that article."

B. Section 12-21-2710 of the 1976 Code is amended to read:

"Section 12-21-2710. It is unlawful for any person to keep on his premises or operate or permit to be kept on his premises or operated within this State any vending or slot machine, punch board, pull board, or other device pertaining to games of chance of whatever name or kind, including those machines, boards, or other devices that display different pictures, words, or symbols, at different plays or different numbers, whether in words or figures or, which deposit tokens or coins at regular intervals or in varying numbers to the player or in the machine, but the provisions of this section do not extend to coin-operated nonpayout pin tables, in-line pin games, and video games with free play feature which meet the technical requirements provided for in Section 12-21-2782 and Section 12-21-2783, or to automatic weighing, measuring, musical, and vending machines which are constructed as to give a certain uniform and fair return in value for each coin deposited and in which there is no element of chance.
Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred dollars or imprisoned for a period of not more than one year, or both."

C. Section 12-21-2720 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"Section 12-21-2720. (A) Every person who maintains for use or permits the use of, on a place or premises occupied by him, one or more of the following machines or devices shall apply for and procure from the South Carolina Department of Revenue a license effective for two years for the privilege of making use of the machine in South Carolina and shall pay for the license a tax of fifty dollars for each machine in item (1), two hundred dollars for each machine in item (2), and three four thousand dollars for each machine in item (3):
(1) a machine for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes in which is deposited a coin or thing of value. A machine on which an admissions tax is imposed is exempt from the C.O.D. license provisions of this section.
(2) a machine for the playing of amusements or video games, without free play feature, or machines of the crane type operated by a slot in which is deposited a coin or thing of value and a machine for the playing of games or amusements, which has a free play feature, operated by a slot in which is deposited a coin or thing of value, and the machine is of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed. A machine required to be licensed under this item is exempt from the license fee if an admissions tax is imposed.
(3) a machine of the nonpayout type, in-line pin game, or video game with free play feature operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or 'flippers' operated by the player by which the course of the balls may be altered or changed.
(B) No municipality may limit the number of machines within the boundaries of the municipality. A municipality may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section in an amount not exceeding ten percent of three thousand six hundred dollars of the license fee imposed pursuant to subsection (A) for the equivalent license period.
(C) The owner or operator of any coin-operated device which is exempt from Section 16-19-60 and is subject to licensing under Section 12-21-2720(A)(3) and which has multi-player stations, shall purchase a separate license for each such station and any such multi-player station counts as a machine when determining the number of machines authorized for licensure under Section 12-21-2804(A).
(D) A county may by ordinance impose a license fee on machines licensed pursuant to subsection (A)(3) of this section located in an unincorporated area of the county in an amount not exceeding ten percent of three thousand six hundred dollars of the regular license fee imposed pursuant to subsection (A) for the equivalent license period.
(E) The department shall not issue a license for the operation of a video game with a free play feature which is located or intended to be located on a watercraft or vessel plying the territorial waters of this State.
(F) Four hundred dollars of the four thousand dollar license fee imposed in subsection (A) may be retained by the department and expended in budgeted operations for the implementation and ongoing operation of the monitoring system required by law or in other programs and services as the director may determine necessary and appropriate."

D. Section 12-21-2772(9) of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"(9) 'Contraband device/equipment' or 'gray area machine' means any unlicensed machine not meeting the requirements of Section 12-21-2782 and Section 12-21-2783."

E. Section 12-21-2774(3) of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"(3) must have a commission approved one or more metering device devices that keeps keep a record of all cash (total coin coins accepted, total bills accepted, and total credit generated by the coin and bill acceptor acceptors) inserted or deposited into the machine, credits played for video games, and credits won by video players and refunds payments of winnings and other information as prescribed by the department;"

F. Section 12-21-2776 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"Section 12-21-2776. (A) All machines must be registered and licensed by the commission under procedures and guidelines issued by the commission department.
(B) By July 1, 1998, all machines registered and licensed by the department must be equipped with a department approved metering device. Each machine owner, operator, or licensed establishment must establish and implement cash controls and beginning January 1, 1996, shall report to the department on a quarterly basis the following information for each machine:
(1) name and address of location of the machine;
(2) denomination, whether five cents, twenty-five cents, etc., of game;
(3) the name of the game;
(4) the name of the individual collecting money from the machine or the owner of the machine;
(5) the date of collection;
(6) the date of previous collection;
(7) income number at commencement of reporting period;
(8) income number at the end of the reporting period;
(9) beginning payout number;
(10) ending payout number;
(11) refunds payout to players;
(12) gross profit;
(13) the percentage of net profits divided between owner and location.
This report must be filed with the department by the twentieth of the month following the end of the calendar quarter."

G. Section 12-21-2782 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"Section 12-21-2782. (A)(1) The Department of Revenue and Taxation shall promulgate rules and regulations regarding the types of machines that may be licensed providing for minimum technical standards for video game machines, including standards to ensure that the games are random, have a minimum payback of at least eighty percent, are secure and accountable, do not operate in a misleading or deceptive manner, and are capable of interfacing with a computerized monitoring system to be selected by the department. The regulations may also provide for the payment of the cost associated with the inspection and licensing of machines and investigation and licensing of manufacturers and distributors in the development of these technical standards. The department may contract with a qualified laboratory for the inspection of machines and may impose the cost of inspection upon the manufacturer or distributor seeking approval of the machines. All video game machines licensed in this State on or after June 1, 1998, must be in compliance with all rules and regulations, including the minimum technical standards.
(2) The technical standards established by the department must be designed so as to maximize competition in the market place among manufacturers of machines to be licensed by the department. Any computerized monitoring system purchased, leased, or operated by the department pursuant to subsection (B) must provide that all game machines meeting the technical standards must be connected in a non-discriminatory manner.
(B) The department may contract for the purchase, lease, or operation of a computer monitoring system to which video game machines must be connected no later than July 1, 1998. The system shall provide for monitoring of the video game machines either through the use of an on-line system or the use of a dial-up system with cluster controllers, remote EPROM verification, ticket validation, central registration of machines, daily collection of accounting and security data, and the ability to disable a machine in the event of a violation of any material rule or regulation, such violation having been determined to have occurred after a hearing or an opportunity for a hearing pursuant to the Administrative Procedures Act. Any system used by the department must be compatible for connection with any machine that meets the technical requirements established by the department.
All video game machines licensed under Section 12-21-2720(A)(3), no later than December 31, 1998, must:
(1) have games that are random and have a minimum payback of at least eighty percent in which the theoretical payout percentage is determined using standard methods of probability theory;
(2) be secure and accountable;
(3) not operate in a misleading or deceptive manner; and
(4) be capable of interfacing with a computerized monitoring system to be selected by the department.
The technical standards established by the department must be designed so as to maximize competition in the market place among manufacturers.

Machines not meeting the standards of this section or regulation of the department may not be licensed. The license of any machine which fails to maintain the standards of this section or regulation of the department must be revoked."

H. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-2783. (A) As part of the central computer monitoring system required under this article, each location operating video game machines must provide a location controller and modem meeting requirements set forth by this section and by the department. Each location controller must be capable of receiving, storing, and transmitting to the department's central computer monitoring system all information received from, and required of, video game machines as set forth in Section 12-21-2782. Each location controller must be capable of supporting at least five video game machines.
This section applies to those location controllers which participate in the system as separate hardware entities, and any 'head of string' location controller which meets the specifications of this section.
The cost for purchasing or leasing, as well as the cost of installing, the location controller is the responsibility of the licensed establishment in which the video game machines are located.
(B) In addition to the above requirement, each location controller must be able to perform the following functions:
(1) communicate with video game machines in an on-line environment;
(2) when authorized parties open video game machine game door, store a log entry of this event;
(3) when authorized parties open video game machine coin or currency door, store a log entry of this event;
(4) authorize video game machine to be taken off-line from the location controller;
(5) disable video game machine and store a log entry under the following circumstances:
(a) unauthorized game door open; and
(b) unauthorized coin door open;
(6) store a log entry if video game machine is off-line from the location controller without prior authorization;
(7) store a log entry if video game machine tampering is detected. Detection of tampering occurs if the signal received from the video game machine is discontinuous or corrupted in such a manner as to constitute more than spurious noise in the system;
(8) re-enable a video game machine which has been disabled and store a log entry of this event;
(9) log entries which include a unique identification number for each machine and date/time stamp;
(10) have capability for communicating to the central computer system the information which has been gathered from the video game machines and log any entries stored during the period;
(11) have sufficient storage capacity to maintain at least five days of data generated from the maximum playing sessions from the maximum number of associated video game machines linked to the location controller. The data must be stored immediately in a manner that allows on demand, real time access by the central system. Access to data stored in the location controller must be restricted to authorized entry from the central system and other authorized inquiry only access that has been preapproved by the department;
(12) have an internal clock;
(13) be protected from unauthorized interference or tampering by any person or external device or force, such as to corrupt or alter data or corrupt or suspend communication signals or transmitted data from the video game machines or to the central site, and this requirement extends to the location controller as well as its associated communication device, cabling between the controller and the video game machines, and communication device;
(14) be constructed of materials and protected in such a manner as to allow it to operate in suboptimal environments such as nonregulated temperature, dusty, tobacco-smoke filled, and humid conditions;
(15) be capable of validating tickets printed by a video game machine."

I. Section 12-21-2791 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-2791. Any location which operates or allows the operation of coin-operated machines pursuant to Section 12-21-2720(A)(3) which provides payouts authorized pursuant to Section 16-19-60 shall limit the cash payout for credits earned for free games to two thousand five hundred credits per player per location during any twenty-four hour period. The cash value of credits for each free game shall be limited to five cents. During a twenty-four hour period, a person is not permitted to win more than one hundred twenty-five dollars over and above the amount deposited in a coin-operated machine authorized under Section 12-21-2720(A)(3)."

J. Article 20, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-2797. (A) A person in possession of, or allowing the operation of, a contraband or gray area machine at any place within the State after December 31, 1998, is subject to a civil penalty of not more than ten thousand dollars a machine. In addition, the machine may be seized by any law enforcement officer of the State or any of its political subdivisions.
(B) A machine seized under the provisions of this section must be taken before any magistrate of the county in which the machine was seized. The magistrate shall immediately examine the machine and, if he is satisfied that it is a contraband or gray area machine, shall direct that it be destroyed immediately. The magistrate, at his discretion, may order the department to have any laboratory under contract with it to examine the machine to assist in the determination as to whether or not the machine is a contraband or gray area machine."

K. Section 12-21-2798 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-2798. The commission shall department may promulgate rules and regulations pertaining to the machines and persons licensed by it."

L. Section 12-21-2804 of the 1976 Code, as added by Act 164 of 1993, is amended by adding at the end:

"(G)(1) In addition to any other penalties provided by law, the department, for a violation of Section 12-21-2808(E) or Section 12-21-2809, may:
(a) impose a civil penalty in an amount not to exceed five thousand dollars on the owner of the machine, or the person who obtained, or was required to obtain, the retail sales tax license for the place or premises pursuant to Section 12-21-2703, or both; and
(b) revoke the license of the machine giving rise to the violation and any other machine licensed to the same holder in any county where such machines are prohibited pursuant to Section 12-21-2809; and
(c) seize the offending machine and dispose of it as contraband.
(2) The penalties authorized by this subsection are effective immediately upon imposition and may not be stayed by any administrative or judicial action. The sole remedy available under this subsection is a hearing before the Administrative Law Judge Division on the question of the legality of the machine under Section 12-21-2809 and the reasonableness of the penalties imposed. Further appeals are as provided in Section 12-60-3380."

M. Section 12-21-2808 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-2808. (A) In addition to the referendum to be held at the 1994 general election, Counties are authorized to may hold a referendum to determine whether or not cash payoffs are allowed for the operation of machines as defined in this article provided for under Section 16-19-60 of the 1976 Code relating to coin-operated devices shall be authorized. The counties are authorized to hold such a this referendum in the manner provided in this section except that no such referendum may be held until the 1998 general election and may also be held in subsequent general elections as provided herein except at the time of the general election.
(1)(B) The referendum must be held:
(a)(1) upon the passage of an ordinance of the governing body of a county providing for a referendum if the ordinance is passed at least ninety days before a general election; or
(b)(2) upon a petition so requesting filed with the county election commission more than ninety days before the general election containing the signatures of at least ten percent, but not more than two thousand five hundred, of the qualified electors of the county as of the time of the preceding general election.
(2)(C) In any a county in which cash payoffs are authorized by Section 16-19-60 of the 1976 Code relating to coin-operated devices permitted, at the time of the referendum provided for in this section, the question put before the voters shall read as follows:

'Shall cash payoffs for credits earned on coin-operated video game machines continue to be allowed in this county remain legal and subject to licensure and regulation by the State of South Carolina?'

Yes []

No []

(3)(D) In any a county in which, at the time of the referendum provided for in this section, cash payoffs as provided for by Section 16-19-60 of the 1976 Code relating to coin-operated devices are not authorized, the question put before the voters shall read as follows:

'Shall cash payoffs for credits earned on coin-operated video game machines be allowed in this county and subject to licensure and regulation by the State of South Carolina?'

Yes []

No []

(4)(E) If the result of the referendum provided for in this section is not in favor of a continuation of cash payoffs for credits earned on coin-operated devices within the county, Section 16-19-60 of the 1976 Code shall not apply cash payouts are prohibited within the county after July first June thirtieth of the year following the referendum.
(5)(F) If the results of the referendum provided for in this section are to authorize cash payoffs relating to coin-operated devices, Section 16-19-60 shall apply, such payoffs are permitted, subject to the regulations of this article, within such county after beginning January first of the year following the referendum.
(6)(G) The state election laws apply to the referendum provided in this section, mutatis mutandis.
(7)(H) If a majority of the qualified electors within a county vote to terminate cash payoffs for credits earned on coin-operated devices, in a referendum as authorized in this section, the Tax Commission department shall refund to any person holding a license for the operation of coin-operated devices on a pro rata basis, the portion of any license fees previously paid the commission department for licenses which extend beyond July first of the year after the referendum."

N. Section 12-21-2809 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 12-21-2809. (A) In a county in which a majority of the qualified electors vote or have voted to terminate cash payoffs for credits earned on coin-operated devices in a referendum authorized by Sections 12-21-2806 or Section 12-21-2808, the department shall not issue any license for coin-operated devices as defined in Section 12-21-2720(A)(3) and it is unlawful for a person to may not own or possess these machines in the county other than for purposes of storage, maintenance, or transportation.
(B) A person who operates owns or possesses any coin-operated device in violation of subsection (A) of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than two thousand dollars or imprisoned for not more than thirty days. Violations charged under this section must be tried in magistrate's court subject to the penalties provided in Section 12-21-2804(G)."

O. Section 12-54-40 of the 1976 Code, as last amended by Act 76 of 1995, is further amended by adding at the end:

"(g) A machine owner or distributor, as defined in Article 20, Chapter 21 of this title, who allows or causes a machine to be operated without a metering device, or who wilfully places a machine on location or who wilfully allows or causes a machine to be operated with a metering device that does not accurately record the information required under Article 20, Chapter 21 of this title is guilty of a felony and, upon conviction, must be imprisoned for not less than one year nor more than ten years, without benefit of probation, parole, or suspension of sentence, and in addition may be fined not more than twenty-five thousand dollars."

P. A majority "no" vote certified in a county pursuant to the former provisions of Section 12-21-2806 of the 1976 Code is deemed nunc pro tunc a certification of a majority "no" vote pursuant to Section 12-21-2808(C) of the 1976 Code as amended by this act. In these counties, the Department of Revenue may issue a prorated refund of the license fee imposed pursuant to Section 12-21-2720(A)(3) for a machine located in the county on the effective date of this act.

Q. Section 12-21-2796 of the 1976 Code is repealed.

R. Section 12-21-2806 of the 1976 Code is repealed.

S. Subsections A, I, L, M, N, P, and R of this section are effective November 1, 1997. The remaining subsections are effective July 1, 1997, or as otherwise stated.

SECTION 55

TO MAKE FINDINGS OF LEGISLATIVE INTENT OF THE GENERAL ASSEMBLY WITH RESPECT TO GOVERNMENTAL TORT LIABILITY UNDER THE SOUTH CAROLINA TORT CLAIMS ACT; TO AMEND THE 1976 CODE BY ADDING SECTION 15-78-200 SO AS TO PROVIDE THAT THE SOUTH CAROLINA TORT CLAIMS ACT IS THE EXCLUSIVE REMEDY FOR ANY TORT COMMITTED BY A GOVERNMENT EMPLOYEE ACTING WITHIN THE SCOPE OF THE EMPLOYEE'S OFFICIAL DUTY AND TO REQUIRE THIS PROVISION TO BE LIBERALLY CONSTRUED IN FAVOR OF LIMITED LIABILITY WITH AMBIGUITY TO BE RESOLVED AS A MATTER OF LAW IN FAVOR OF THE GOVERNMENT; TO REENACT THE PROVISIONS OF SECTION 15-78-120, AS CURRENTLY EXISTING, SO AS TO PROVIDE THE LIMITATIONS ON LIABILITY AND OTHER REQUIREMENTS UNDER THE SOUTH CAROLINA TORT CLAIMS ACT; TO AMEND SECTION 15-78-120, AS REENACTED IN THIS ACT, RELATING TO LIMITATIONS ON LIABILITY UNDER THE TORT CLAIMS ACT, SO AS TO INCREASE CERTAIN DOLLAR LIMITS OF LIABILITY; AND TO AMEND SECTION 15-78-140, AS AMENDED, RELATING TO THE DUTIES OF THE STATE BUDGET AND CONTROL BOARD TO COVER LIABILITY RISKS FOR WHICH IMMUNITY HAS BEEN WAIVED, THE REQUIREMENT OF POLITICAL SUBDIVISIONS TO PROCURE INSURANCE FOR LIABILITY RISKS FOR WHICH IMMUNITY HAS BEEN WAIVED, AND THE EXCLUSIVITY OF REMEDIES FOR CLAIMS FILED PURSUANT TO THE SOUTH CAROLINA TORT CLAIMS ACT, SO AS TO DELETE THE DUTY OF THE BOARD TO PURCHASE INSURANCE TO COVER RISKS FOR WHICH IMMUNITY HAS BEEN WAIVED.

A. The General Assembly finds:
(1) that because of the unique nature, role, funding, and function of government, the General Assembly has never intended that the government or taxpayers would be subject to unlimited liability for tort actions against the government;
(2) this section shall clarify any ambiguity in the General Assembly's intent that there remain reasonable limits upon recovery against the government for tort actions, and that the government is only liable for torts as expressly prescribed and authorized in the "South Carolina Tort Claims Act".

B. Chapter 78, Title 15 of the 1976 Code is amended by adding:

"Section 15-78-200. Notwithstanding any provision of law, this chapter, the 'South Carolina Tort Claims Act', is the exclusive and sole remedy for any tort committed by an employee of a governmental entity while acting within the scope of the employee's official duty. The provisions of this chapter establish limitations on and exemptions to the liability of the governmental entity and must be liberally construed in favor of limiting the liability of the governmental entity."

C. Section 15-78-120 of the 1976 Code, as last amended by Act 380 of 1994, is reenacted in its present form which reads:

"Section 15-78-120. (a) For any action or claim for damages brought under the provisions of this chapter, the liability shall not exceed the following limits:
(1) Except as provided in Section 15-78-120(a)(3), no person shall recover in any action or claim brought hereunder a sum exceeding two hundred fifty thousand dollars because of loss arising from a single occurrence regardless of the number of agencies or political subdivisions involved.
(2) Except as provided in Section 15-78-120(a)(4), the total sum recovered hereunder arising out of a single occurrence shall not exceed five hundred thousand dollars regardless of the number of agencies or political subdivisions or claims or actions involved.
(3) No person may recover in any action or claim brought hereunder against any governmental entity and caused by the tort of any licensed physician or dentist, employed by a governmental entity and acting within the scope of his profession, a sum exceeding one million dollars because of loss arising from a single occurrence regardless of the number of agencies or political subdivisions involved.
(4) The total sum recovered hereunder arising out of a single occurrence of liability of any governmental entity for any tort caused by any licensed physician or dentist, employed by a governmental entity and acting within the scope of his profession, may not exceed one million dollars regardless of the number of agencies or political subdivisions or claims or actions involved.
(5) The provisions of Section 15-78-120(a)(3) and (a)(4) shall in no way limit or modify the liability of a licensed physician or dentist, acting within the scope of his profession, with respect to any action or claim brought hereunder which involved services for which the physician or dentist was paid, should have been paid, or expected to be paid at the time of the rendering of the services from any source other than the salary appropriated by the governmental entity or fees received from any practice plan authorized by the employer whether or not the practice plan is incorporated and registered with the Secretary of State.
(b) No award for damages under this chapter shall include punitive or exemplary damages or interest prior to judgment.
(c) In any claim, action, or proceeding to enforce a provision of this chapter, the signature of an attorney or party constitutes a certificate by him that he has read the pleading, motion, or other paper; that to the best of his knowledge, information, and belief formed after reasonable inquiry it is well-grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation. If a pleading, motion, or other paper is not signed, it shall be stricken unless it is signed promptly after the omission is called to the attention of the pleader or movant. If a pleading, motion, or other paper is signed in violation of this rule, the court, upon motion or upon its own initiative, shall impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay the other party or parties the amount of the reasonable expenses incurred because of the filing of the pleading, motion, or other paper, including a reasonable attorney's fee."

D. Section 15-78-120 of the 1976 Code, as herein reenacted in subsection C, is amended to read:

"Section 15-78-120. (a) For any action or claim for damages brought under the provisions of this chapter, the liability shall not exceed the following limits:
(1) Except as provided in Section 15-78-120(a)(3), no person shall recover in any action or claim brought hereunder a sum exceeding two three hundred fifty thousand dollars because of loss arising from a single occurrence regardless of the number of agencies or political subdivisions involved.
(2) Except as provided in Section 15-78-120(a)(4), the total sum recovered hereunder arising out of a single occurrence shall not exceed five six hundred thousand dollars regardless of the number of agencies or political subdivisions or claims or actions involved.
(3) No person may recover in any action or claim brought hereunder against any governmental entity and caused by the tort of any licensed physician or dentist, employed by a governmental entity and acting within the scope of his profession, a sum exceeding one million two hundred thousand dollars because of loss arising from a single occurrence regardless of the number of agencies or political subdivisions involved.
(4) The total sum recovered hereunder arising out of a single occurrence of liability of any governmental entity for any tort caused by any licensed physician or dentist, employed by a governmental entity and acting within the scope of his profession, may not exceed one million two hundred thousand dollars regardless of the number of agencies or political subdivisions or claims or actions involved.
(5) The provisions of Section 15-78-120(a)(3) and (a)(4) shall in no way limit or modify the liability of a licensed physician or dentist, acting within the scope of his profession, with respect to any action or claim brought hereunder which involved services for which the physician or dentist was paid, should have been paid, or expected to be paid at the time of the rendering of the services from any source other than the salary appropriated by the governmental entity or fees received from any practice plan authorized by the employer whether or not the practice plan is incorporated and registered with the Secretary of State.
(b) No award for damages under this chapter shall include punitive or exemplary damages or interest prior to judgment.
(c) In any claim, action, or proceeding to enforce a provision of this chapter, the signature of an attorney or party constitutes a certificate by him that he has read the pleading, motion, or other paper; that to the best of his knowledge, information, and belief formed after reasonable inquiry it is well-grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation. If a pleading, motion, or other paper is not signed, it shall be stricken unless it is signed promptly after the omission is called to the attention of the pleader or movant. If a pleading, motion, or other paper is signed in violation of this rule, the court, upon motion or upon its own initiative, shall impose upon the person who signed it, a represented party, or both, an appropriate sanction, which may include an order to pay the other party or parties the amount of the reasonable expenses incurred because of the filing of the pleading, motion, or other paper, including a reasonable attorney's fee."

E. Section 15-78-140(a) of the 1976 Code is amended to read:

"(a) It is the duty of the Budget and Control Board to cover risks for which immunity has been waived under the provisions of this chapter by the purchase of insurance as authorized in Section 15-78-150." (Reserved)

F. Except where otherwise provided, this section takes effect upon approval by the Governor and applies to claims or actions pending on that date or thereafter filed, except where final judgment has been entered before that date. The increased limits of liability provided in Section 15-78-120 of the 1976 Code, as amended in subsection D, take effect on the first day of the twelfth month following approval by the Governor and apply to a cause of action arising on or after that date.

SECTION 56

DELETED

SECTION 57

TO AMEND SECTION 55-11-500 OF THE 1976 CODE, RELATING TO DEFINITIONS FOR PURPOSES OF STATE FUNDING OF AIR CARRIER HUB TERMINAL FACILITIES, SO AS TO EXTEND THE DEFINITION OF AIR CARRIER HUB TERMINAL FACILITY TO A FACILITY WITH A WEEKLY TOTAL OF AT LEAST TWENTY-FIVE COMMON CARRIER DEPARTING CARGO AND AIR FREIGHT FLIGHTS.

A. Section 55-11-500(a)(2) of the 1976 Code, as added by Section 99, Part II, Act 497 of 1994, is amended to read:

"(2) at least five twenty-five common carrier departing flights a day for the purpose week on an annual basis for the purposes of transporting cargo and air freight at least five days each week."

B. This section takes effect upon approval by the Governor but shall apply to tax years after 1994.

SECTION 58

DELETED

SECTION 59

TO AMEND THE 1976 CODE BY ADDING SECTION 43-3-65 SO AS TO REQUIRE THE GOVERNING AUTHORITIES OF EACH COUNTY TO PROVIDE OFFICE SPACE AND FACILITY SERVICES FOR ITS COUNTY DEPARTMENT OF SOCIAL SERVICES.

A. The 1976 Code is amended by adding:

"Section 43-3-65. The governing authorities of each county shall provide office space and facility service, including janitorial, utility and telephone services, and related supplies, for its county Department of Social Services."

B. This section takes effect July 1, 1997.

SECTION 60

TO AMEND ARTICLE 9, CHAPTER 1, TITLE 1 OF THE 1976 CODE, RELATING TO STATE EMBLEMS, PLEDGE TO STATE FLAG, AND OFFICIAL OBSERVANCE, BY ADDING SECTION 1-1-705 SO AS TO DESIGNATE THE SOUTH CAROLINA RAILROAD MUSEUM IN FAIRFIELD COUNTY AS THE OFFICIAL RAILROAD MUSEUM OF THE STATE OF SOUTH CAROLINA UPON THE PAYMENT OF A FEE TO THE SECRETARY OF STATE.

A. Article 9, Chapter 1, Title 1 of the 1976 Code is amended by adding:

"Section 1-1-705. The South Carolina Railroad Museum in Fairfield County is the official railroad museum of the State of South Carolina, upon the payment of a fee of five dollars to the Secretary of State."

B. This section takes effect on July 1, 1997.

SECTION 61

DELETED

SECTION 62

TO AMEND CHAPTER 3, TITLE 56 OF THE 1976 CODE, RELATING TO MOTOR VEHICLE REGISTRATION AND LICENSING, BY ADDING ARTICLE 52 SO AS TO PROVIDE FOR THE ISSUANCE OF CHARTER LIMOUSINE LICENSE PLATES, TO ESTABLISH A TWENTY-FIVE DOLLAR FEE FOR THESE PLATES, AND TO PROVIDE FUNDING FOR PROCESSING DOCUMENTS RELATED TO ACQUIRING THESE PLATES.

A. Chapter 3, Title 56 of the 1976 Code is amended by adding:

"Article 52

Charter Limousine License Plates

Section 56-3-5300. (A) In addition to complying with any other registration and license fee requirement contained in this chapter, a 'charter limousine' regulated by the South Carolina Public Service Commission must acquire a special license plate from the Department of Public Safety upon submission of proof that the charter limousine is certified as a 'Class C Charter Limousine' by the commission.
(B) The biennial fee for this special license plate is twenty-five dollars.
(C) Of the funds appropriated to the Public Service Commission in the Annual Appropriations Act for 1997-98 and subsequent years for Operations/Administration, Other Operating Expenses, sufficient funds must be used to process documents providing proof that the charter limousine is certified as a 'Class C Charter Limousine' as required by subsection (A)."

B. This section takes effect July 1, 1997.

SECTION 63

TO AMEND ARTICLE 5, CHAPTER 4, TITLE 61 OF THE 1976 CODE, RELATING TO PERMITS FOR THE RETAIL SALE OF BEER AND WINE, BY ADDING SECTION 61-4-620 SO AS TO PROVIDE FOR THE PERMITTING OF SUNDAY SALES WHEN THE PERMITTED ESTABLISHMENT CLOSES ON SATURDAY FOR RELIGIOUS REASONS.

A. Article 5, Chapter 4, Title 61 of the 1976 Code is amended by adding:

"Section 61-4-620. A person who sells beer and wine pursuant to a permit issued in accordance with Sections 61-4-500, 61-4-520, and 61-4-540 of the 1976 Code and who closes his business establishment or refrains from operating his business on Saturdays for religious reasons may be allowed, upon the filing of an affidavit of closing on Saturdays for religious reasons with and the payment of an additional fee of fifty dollars to the department, to open for business and sell beer and wine on Sundays, as specified in Sections 61-4-120, 61-4-130, and 61-4-140 in those counties which authorize Sunday beer sale permits. The opening of the business establishment or operation of business on Saturdays in contradiction of the affidavit is grounds for the revocation of the permit issued pursuant to this section and Sections 61-4-500, 61-4-520, and 61-4-540. The fifty-dollar additional fee must be used to pay the administrative and enforcement costs of this special permit."

B. This section takes effect July 1, 1997.

SECTION 64

TO AMEND THE 1976 CODE BY ADDING SECTION 12-6-5080 SO AS TO PROVIDE A DESIGNATION ON INDIVIDUAL INCOME TAX FORMS ENABLING A TAXPAYER TO MAKE A CONTRIBUTION TO THE DRUG AWARENESS RESISTANCE EDUCATION FUND; AND BY ADDING ARTICLE 6 TO CHAPTER 53, TITLE 44 SO AS TO ESTABLISH THE DRUG AWARENESS RESISTANCE EDUCATION FUND, PROVIDE FOR ITS GOVERNANCE, DUTIES, AND THE EXPENDITURE OF FUNDS.

A. Article 41, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-5080. (A) Each taxpayer required to file a state individual income tax return may contribute to the Drug Awareness Resistance Education (DARE) Fund by designating the contribution on the return. The contribution may be made by reducing the income tax refund or by remitting additional payment by the amount designated.
(B) All South Carolina individual income tax return forms must contain a designation for the above contribution. The instructions accompanying the income tax form must contain a description of the purposes for which the funds were established and the use of monies from the income tax contribution.
(C) The department shall determine and report annually to the fund the total amount of contributions designated. The department shall transfer the appropriate amount to each fund at the earliest possible time. The incremental cost of administration of the contribution must be paid out of the contributions before any funds are expended as provided in this section."

B. Chapter 53, Title 44 of the 1976 Code is amended by adding:

"Article 6

Drug Awareness Resistance Education Fund

Section 44-53-810. The General Assembly finds:
(1) that the future of this State rests in the hands of school children;
(2) the Drug Abuse Resistance Education Program taught in this State and in many schools nationally provides an effective and proven awareness of instilling drug resistance skills in our school children, and promoting the hope of a secure and healthy future for these children.

Section 44-53-820. There is established the Drug Awareness Resistance Education (DARE) Fund, an eleemosynary corporation, the resources of which must be used to promote and encourage the Drug Awareness and Resistance Education Program in this State. The trust fund supplements and augments services provided by government agencies and does not take the place of these services.

Section 44-53-830. (A) The DARE Fund is to be administered by a board of directors appointed by the Governor, with the advice and consent of the Senate, and is composed of:
(1) the Attorney General, ex officio, or his designee;
(2) two county sheriffs, who shall serve ex officio;
(3) two police chiefs;
(4) two local law enforcement officers assigned to the DARE Program; and
(5) two school principals.
Directors who are not elected officials serve by virtue of their position at the time of appointment.
(B) Members shall serve terms of four years and until successors are appointed and qualify. A board member may be removed by the Governor in accordance with Section 1-3-240(B). Vacancies must be filled in the manner of the original appointment for the unexpired portion of the term.

Section 44-53-840. Board members are not entitled to per diem but may be reimbursed for mileage and all necessary and reasonable expenses incurred in the performance of their duties under this article.

Section 44-53-850. In administering this article, the board is authorized, but not limited to:
(1) develop and implement educational programs and campaigns in support of the DARE Program in South Carolina;
(2) make policy recommendations for the DARE Program in South Carolina;
(3) assess the needs of DARE Programs;
(4) determine how the monies in the fund are to be disbursed;
(5) acquire and hold property;
(6) invest trust monies, including pooled investment funds maintained by the State;
(7) utilize local resources including volunteers when appropriate.

Section 44-53-860. The board shall elect a chairman from among its members and shall adopt rules for the governance of its operations. The board shall meet at least semiannually. Six members constitute a quorum.

Section 44-53-870. The board may employ a director and other staff as necessary to carry out the provisions of this article; however, administration of this article may not exceed twenty percent of the total funds credited to the trust fund, excluding the administrative fee paid to the Department of Revenue pursuant to Section 12-6-5080.

Section 44-53-880. Funds credited to the trust fund, excluding the administrative fees paid to the Department of Revenue, may be used for, but are not limited to:
(1) administration of this article including, but not limited to, personnel and board expenses;
(2) development and promotion of the DARE Program in this State;
(3) a reserve fund in an interest-bearing account with five percent of the funds received by the trust fund annually to be placed in this account. No withdrawals may be made from this account until the minimum balance has reached one hundred thousand dollars and then these funds may be used only in years in which donations do not meet the average normal operating cost incurred by the trust fund and funds are needed to meet expenses. Once the balance in the reserve funds reaches one hundred thousand dollars, excess fund earned by interest and yearly allocations may be used at the discretion of the board to cover operating costs and to provide additional funds.

Section 44-53-890. The fund board annually by February first shall submit a report to the General Assembly concerning its expenditures of fund monies and activities."

C. This section takes effect upon approval by the Governor.

SECTION 65

TO AMEND THE 1976 CODE BY ADDING SECTION 59-71-155 SO AS TO ENSURE THE TERMS OF PAYMENT OF BONDED INDEBTEDNESS OF SCHOOL DISTRICTS BY MEANS OF TRANSFERS FROM THE GENERAL FUND OF THIS STATE REIMBURSED FROM MONIES DUE THE DISTRICT, TO PROVIDE FOR THE APPLICABLE PROCEDURES FOR THIS METHOD OF PAYMENT AND REIMBURSEMENT, TO REQUIRE THE COUNTY AUDITOR TO IMPOSE FOR AMOUNTS DUE IN THE NEXT FISCAL YEAR A MILLAGE SUFFICIENT TO MAKE THESE PAYMENTS, AND TO PROVIDE REPORTING REQUIREMENTS.

Article 1, Chapter 71, Title 59 of the 1976 Code is amended by adding:

"Section 59-71-155. (A) This section applies to existing and future general obligation bonds issued by an operating school unit. For purposes of this section, general obligation bonds are obligations expressly secured by the full faith, credit, and taxing power of the operating school unit that issues the bonds.
(B) The county treasurer of a county in which any operating school unit has outstanding general obligation bonds shall notify the State Treasurer on the fifteenth day prior to the due date of any payment of principal or interest on the bonds if the county treasurer does not have on deposit, or there is not on deposit with a paying agent, the sum required to make that payment. If the county treasurer or paying agent does not have on deposit the sum required to make that payment on the third business day prior to the due date, the State Treasurer shall transfer to the county treasurer from the general fund of the State the sum necessary to enable the county treasurer or paying agent to make payment of principal and interest then coming due. However, the total amount to be advanced to operating school units for this purpose in any fiscal year may not exceed the amount appropriated in that year under the Education Finance Act. Immediately upon receipt of the sum from the State Treasurer on a bond for which a paying agent other than the county treasurer has been appointed, the county treasurer shall transfer to the paying agent all amounts required to effect punctual payment of the sum due. The State Treasurer shall withhold from the operating school unit from the next and subsequent distributions of any revenue to that operating school unit sufficient monies necessary to reimburse the general fund of the State for the sums applied to pay the principal and interest on the bonds and for the investment earnings that would have been received on the monies advanced from the general fund. In addition, the State Treasurer may direct the county treasurer to apply to the payment due on the bonds any monies being held by the county treasurer in any fund, other than the sinking fund, derived from state revenue for the operating school unit.
(C) The amounts forwarded to any county treasurer by the State Treasurer under subsection (B) must be applied by the county treasurer or paying agent solely to the payment of the principal of or interest on the bonds. The State Treasurer shall notify the State Department of Education, the county auditor, and the superintendent of the operating school unit of payments made and sums withheld pursuant to this section.
(D) Whenever the State Treasurer makes a payment to a county treasurer pursuant to subsection (B) and withholds sums from revenue to the operating school unit pursuant to this section, or directs a county treasurer to apply monies for this purpose, the county treasurer shall pay to the operating school unit all collections of property taxes levied for the payment of the operating school unit's general obligation bonds until the sums so withheld or applied have been paid by the county treasurer to the operating school unit from such tax levies.
(E) A county auditor in any county in which the provisions of subsection (B) have been implemented for the payment of principal and interest on the general obligation bonds of an operating school unit shall adjust the millage levied for the payment of those bonds in the next fiscal year to the level necessary to provide for the punctual payment of all sums due during that year and shall file a report with the State Treasurer demonstrating compliance with this subsection not later than five business days after setting the millage for this fiscal year."

SECTION 66

DELETED

SECTION 67

TO AMEND CHAPTER 45, TITLE 12 OF THE 1976 CODE, RELATING TO COUNTY TREASURERS AND COLLECTION OF TAXES, BY ADDING SECTION 12-45-115 SO AS TO PROVIDE THAT A COUNTY TREASURER MAY INSTITUTE COLLECTION PROCEEDINGS FOR THE PAYMENT OF TAXES OR FEES ON A CHECK THAT IS RETURNED UNPAID INCLUDING APPLICABLE SERVICE CHARGE FEES.

A. Chapter 45, Title 12 of the 1976 Code is amended by adding:

"Section 12-45-115. If an uncertified check is accepted by a county treasurer as payment for taxes or fees and the check is returned to the county treasurer unpaid for any cause, the county treasurer may institute proceedings pursuant to Section 34-11-70 to collect on the check, including all applicable service charges or fees."

B. This section takes effect upon approval of the Governor.

SECTION 68

TO AMEND THE 1976 CODE BY ADDING SECTIONS 12-6-555 AND 12-36-75 SO AS TO PROVIDE THAT A PERSON THAT DOES NOT OTHERWISE HAVE A NEXUS WITH SOUTH CAROLINA AND THAT HAS CONTRACTED FOR COMMERCIAL PRINTING AT A SOUTH CAROLINA PREMISES SHALL NOT BE CONSIDERED TO HAVE INCOME DERIVED FROM SOURCES WITHIN SOUTH CAROLINA OR BE SUBJECT TO THE SALES AND USE TAX UNDER CERTAIN CONDITIONS.

A. The 1976 Code is amended by adding:

"Section 12-6-555. Notwithstanding any other provision of this chapter, with respect to a person that does not otherwise have a nexus with South Carolina, and that has contracted with a commercial printer for printing:
(1) the ownership or leasing by that person of tangible or intangible property located at the South Carolina premises of the commercial printer and used in connection with printing contracts;
(2) the sale by that person of property printed or imprinted at and shipped or distributed from the South Carolina premises of the commercial printer by the commercial printer;
(3) the activities performed pursuant or incident to a printing contract by or on behalf of that person at the South Carolina premises of the commercial printer by the commercial printer; or
(4) the activities performed pursuant or incident to a printing contract by the commercial printer in South Carolina for or on behalf of that person;
shall not cause that person to have income derived from sources within South Carolina for purposes of the taxes imposed by this chapter, unless that person engages in other activities in South Carolina that exceed the protection of 15 U.S.C. Section 381. The person shall not be considered to have a fixed place of business in South Carolina at either the commercial printer's premises or at any place where the commercial printer performs printing and related services on behalf of that person."

B. The 1976 Code is amended by adding:

"Section 12-36-75. (A) Notwithstanding any other provision of this chapter, tangible or intangible property that is:
(1) owned or leased by a person that has contracted with a commercial printer for printing and used in connection with a printing contract; and
(2) located at the premises of the commercial printer;
shall not be considered to be, or to create, an office, a place of distribution, a sales location, a sample location, a warehouse, a storage place, or other place of business maintained, occupied, or used in any way by the person. A commercial printer with which a person has contracted for printing by reason of any printing contract which may include storing and shipping the items printed shall not be considered to be in any way a representative, an agent, a salesman, a canvasser, or a solicitor for the person.
(B) Notwithstanding any other provision of this chapter, the following shall not cause a person that has contracted with a commercial printer for printing to have a duty to register as a retailer or to collect or remit the sales or use tax imposed by this chapter:
(1) the ownership or leasing by that person of tangible or intangible property located at the South Carolina premises of the commercial printer and used in connection with printing contracts;
(2) the sale by that person of property printed or imprinted at and shipped or distributed from the South Carolina premises of the commercial printer by the commercial printer;
(3) the activities performed pursuant or incident to a printing contract by or on behalf of that person at the South Carolina premises of the commercial printer by the commercial printer; or
(4) the activities performed pursuant or incident to a printing contract by the commercial printer in South Carolina for or on behalf of that person."

SECTION 69

TO AMEND SECTION 12-43-220, AS AMENDED, OF THE 1976 CODE, RELATING TO THE FOUR PERCENT ASSESSMENT RATIO FOR THE AD VALOREM PROPERTY TAXATION OF LEGAL RESIDENCES, SO AS TO INCLUDE ADDITIONAL DWELLINGS LOCATED ON THE SAME PROPERTY AND OCCUPIED BY IMMEDIATE FAMILY MEMBERS.

A. Section 12-43-220(c)(1) of the 1976 Code, as last amended by Act 431 of 1996, is further amended to read:

"(1) The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, and additional dwellings located on the same property and occupied by immediate family members of the owner of the interest, are is taxed on an assessment equal to four percent of the fair market value of the property. If residential real property is held in trust and the income beneficiary of the trust occupies the property as a residence, then the assessment ratio allowed by this item applies if the trustee certifies to the assessor that the property is occupied as a residence by the income beneficiary of the trust. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for taxes on the leased property, then the property upon which he is liable for taxes, not to exceed five acres contiguous to his legal residence, must be assessed at the same ratio provided in this item. If this property has located on it any rented mobile homes or residences which are rented or any business for profit, this four percent value does not apply to those businesses or rental properties. For purposes of the assessment ratio allowed pursuant to this item, a residence does not qualify as a legal residence unless the residence is determined to be the domicile of the owner-applicant. A taxpayer may receive the four percent assessment ratio on only one residence for a tax year."

B. This section takes effect for property tax years beginning after 1997.

SECTION 70

TO AMEND SECTION 1-11-720, AS AMENDED, OF THE 1976 CODE, RELATING TO ENTITIES ELIGIBLE TO PARTICIPATE IN THE STATE HEALTH AND DENTAL INSURANCE PLANS, SO AS TO EXTEND ELIGIBILITY TO THE SOUTH CAROLINA STATE EMPLOYEES' ASSOCIATION.

A. Section 1-11-720(A) of the 1976 Code, as last amended by Act 458 of 1996, is further amended to by adding an appropriately numbered item at the end to read:

"( ) the South Carolina State Employees' Association."

B. This section takes effect July 1, 1997.

SECTION 71

TO AMEND SECTION 6-1-70 OF THE 1976 CODE, RELATING TO REAL ESTATE TRANSFER FEES, SO AS TO PROVIDE THAT THE GOVERNING BODY OF EACH COUNTY, MUNICIPALITY, SCHOOL DISTRICT, OR SPECIAL PURPOSE DISTRICT MAY NOT IMPOSE ANY FEE OR TAX OF ANY NATURE OR DESCRIPTION ON THE TRANSFER OF REAL PROPERTY UNLESS THE GENERAL ASSEMBLY HAS EXPRESSLY AUTHORIZED BY GENERAL LAW THE IMPOSITION OF THE FEE OR TAX; AND TO PROVIDE THAT THE LOCAL GOVERNING BODIES THAT ENACTED AND COLLECTED FEES ON TRANSFERS OF REAL ESTATE PENDING RESOLUTION OF THEIR DISPUTE OVER THE REQUIREMENT THAT THE COLLECTED FUNDS BE REMITTED TO THE STATE TREASURER, ARE ALLOWED TO USE THOSE FUNDS COLLECTED AS OF JULY 1, 1997, FOR THEIR ORIGINALLY INTENDED SPECIFIC LOCAL PURPOSES, OR, IN THE ALTERNATIVE, TO REFUND THE FEES TO THOSE WHO PAID THEM.

A. Section 6-1-70 of the 1976 Code, as added by Act 497 of 1994, is amended to read:

"Section 6-1-70. (A) Except as provided in subsection (B), the governing body of each county and, municipality, school district, or special purpose district may not impose any fee or tax of any nature or description on the transfer of real property unless the General Assembly has expressly authorized by general law the imposition of the fee or tax. which enacts and collects any fee which is charged on the transfer of real estate shall, not later than ten days after the close of a fiscal year quarter, remit to the State Treasurer an amount equal to the amount of real estate transfer fees collected in the previous fiscal year quarter. The county or municipality may voluntarily elect to have the State Treasurer or Comptroller General, as appropriate, deduct the amount required to be remitted from any distributions authorized to be made to the county or municipality under Aid to Subdivisions."

B. The local governing bodies that enacted and collected fees on transfers of real estate pending resolution of their dispute over the requirement that the collected funds be remitted to the State Treasurer, are allowed to use those funds collected as of July 1, 1997, for their originally intended specific local purposes, or in the alternative, to refund the fees to those who paid them.

C. This section takes effect July 1, 1997.

SECTION 72

TO AMEND SECTION 6-1-70 OF THE 1976 CODE, RELATING TO REAL ESTATE TRANSFER FEES, SO AS TO PROVIDE THAT A MUNICIPALITY THAT ORIGINALLY ENACTED A REAL ESTATE TRANSFER FEE PRIOR TO JANUARY 1, 1991 MAY IMPOSE AND COLLECT A REAL ESTATE TRANSFER FEE, BY ORDINANCE, REGARDLESS OF WHETHER IMPOSITION OF THE FEE WAS DISCONTINUED FOR A PERIOD AFTER JANUARY 1, 1991; TO PROVIDE THAT THE STATE TREASURER IS DIRECTED TO RETURN ANY REAL ESTATE TRANSFER FEES WHICH HAVE BEEN REMITTED TO HIS OFFICE TO THE LOCAL GOVERNING BODY WHICH REMITTED THOSE FUNDS SO THE FUNDS MAY BE USED FOR THEIR ORIGINALLY INTENDED SPECIFIC LOCAL PURPOSES; AND TO PROVIDE FOR THE SEVERABILITY OF THIS PROVISION.

A. Section 6-1-70 of the 1976 Code, as added by Act 497 of 1994, is amended by adding:

"(B) A municipality that originally enacted a real estate transfer fee prior to January 1, 1991 may impose and collect a real estate transfer fee, by ordinance, regardless of whether imposition of the fee was discontinued for a period after January 1, 1991."

B. The State Treasurer is directed to return any real estate transfer fees which have been remitted to his office to the local governing body which remitted those funds so the funds may be used for their originally intended specific local purposes.

C. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this section or of Section 6-1-70 for any reason is held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

D. This section takes effect July 1, 1997.

SECTION 73

DELETED

SECTION 74

TO AMEND TITLE 11 OF THE 1976 CODE, RELATING TO PUBLIC FINANCE, BY ADDING CHAPTER 42 SO AS TO ENACT THE "SOUTH CAROLINA COMPREHENSIVE INFRASTRUCTURE DEVELOPMENT ACT" SO AS TO ESTABLISH A STATE PROGRAM TO COORDINATE INFRASTRUCTURE PLANNING AMONG STATE, REGIONAL, AND LOCAL UNITS OF GOVERNMENT, ASSIST IN DEVELOPMENT OF COMPREHENSIVE REGIONAL INFRASTRUCTURE DEVELOPMENT PLANS, AND IDENTIFY AND PROVIDE FUNDING AND FINANCIAL ASSISTANCE FOR CONSTRUCTING AND IMPROVING INFRASTRUCTURE.

A. (1) The General Assembly recognizes that the infrastructure needs of the State of South Carolina have reached a critical stage, and that there has been a lack of comprehensive planning for both infrastructure development and infrastructure funding which has contributed to this situation.
(2) The General Assembly further recognizes that all levels of government, including municipal, county, regional and state, must be enabled and structured to coordinate infrastructure development and infrastructure funding. At the same time, the General Assembly recognizes and supports the independent authority of local government over local functions and governance; and
(3) The General Assembly recognizes as well that certain state programs related to infrastructure development have not been coordinated or focused to ensure that infrastructure development throughout South Carolina is efficient and consistent with comprehensive state and regional planning. Similarly, certain public monies directed through state agencies that underwrite infrastructure development have not been used to maximum efficiency, or in a manner consistent with comprehensive state and regional infrastructure planning. It has therefore determined to enact the provisions of Chapter 42 of Title 11 as contained in this section.

B. Title 11 of the 1976 Code is amended by adding:

"CHAPTER 42

Comprehensive Infrastructure Development Act

Section 11-42-10. This chapter may be cited as the South Carolina Comprehensive Infrastructure Development Act.

Section 11-42-20. Comprehensive infrastructure development and planning is vitally important to the State and to its local political subdivisions. The General Assembly, by this chapter, creates a state program and a unit of state government to work with state agencies, regional councils of government, and local political subdivisions to coordinate infrastructure planning, to assist in development of comprehensive regional infrastructure development plans, and to identify and coordinate the funding related to infrastructure development distributed through state agencies in order to maximize efficiency and promote comprehensive infrastructure development planning.

Section 11-42-30. As used in this chapter:
(1) 'Board' means the State Budget and Control Board.
(2) 'County' means any county of this State.
(3) 'Division of Regional Development' is a division of the board. This division is be the designated state program for coordination of comprehensive state and regional infrastructure planning.
(4) 'Director' is the Director of the Division of Regional Development.
(5) 'Executive director' means the executive director of the board.
(6) 'Infrastructure' means the basic facilities, services, and installations needed for the functioning of government including, but not limited to, water, sewer, and public sector communications. Infrastructure as used in this chapter does not mean transportation, power delivery systems, health planning and delivery systems, or except for the purposes of public sector communications planning, commercial communication systems.
(7) 'Infrastructure Development Plans' means any written proposal by the State, county, municipality, special purpose district or regional council of government that involves development of infrastructure as defined in this chapter. These plans include, but are not limited to, such matters as water and sewerage systems, and communications. The plans must be proposed and prepared pursuant to recommended standards and procedures for the preparation and implementation of infrastructure development plans established in accordance with this chapter by the Division of Regional Development and the Regional Councils of Government. Any plan developed for communications must consider available existing private sector communications facilities, systems, and services.
(8) 'Municipality' as described in Section 5-1-20 means any city or town which has been issued a certificate of incorporation or which has been created by act of the General Assembly.
(9) 'Political subdivision' means any municipality, county, public service district, or special purpose district.
(10) 'Regional Councils of Government' are as described in Section 6-7-110.
(11) 'South Carolina Advisory Commission on Intergovernmental Relations' means the commission created pursuant to Section 1-27-10 which, as part of the office of the executive director of the board, researches intergovernmental problems.
(12) 'State Advisory Council for Regional Development' or 'state council' means the Advisory Council for Regional Development created by this chapter.
(13) 'Communications' means public sector communications.

Section 11-42-40. (A) There is created the Division of Regional Development as a division within the State Budget and Control Board. The division shall report to the executive director of the board.
(B) The division is managed and directed by a director appointed by the executive director of the board, and who shall serve at the pleasure of the executive director.

Section 11-42-50. The Division of Regional Development is the state program responsible for the creation of a state infrastructure development plan, for the coordination of regional infrastructure development plans, and for the coordination of state programs and resources that impact or affect infrastructure development. To fulfill its public mandate, the division is expressly authorized to perform the following functions and exercise the following powers:
(1) prescribe recommended elements to be included in any comprehensive regional infrastructure development plan;
(2) coordinate and qualify regional infrastructure development plans;
(3) create a state infrastructure development plan through consultation with other appropriate state agencies;
(4) provide training, education, resources and technical assistance to enable and support the efforts of local governments and the Regional Councils of Government to create and develop comprehensive infrastructure development plans;
(5) to participate as a party, as an advocate, or otherwise, in state government and state agency decision-making processes that impact or affect infrastructure development;
(6) to coordinate relevant state government actions and programs that impact or affect infrastructure development in order to focus and direct these actions and programs to support and assist the development and implementation of the State and regional infrastructure development plans;
(7) to identify and coordinate public funds, regardless of original source, that are expended or distributed by state agencies to help underwrite or support infrastructure development in order that state agency expenditures and distributions of public funds are both consistent with and supportive of state and regional infrastructure development plans; and
(8) to request and receive assistance and support from other state agencies and programs as needed by the division.

Section 11-42-60. The division shall function as a division of the State Budget and Control Board and has all administrative and program authority necessary to fulfill its public mandate including, but not limited to, the following powers:
(1) to solicit, receive, and expend public and private funds from any relevant sources and entities in order to carry out the purposes of the division; and
(2) to prescribe and charge fees for its services, which fees must be retained and expended for division purposes.

Section 11-42-70. There is created the State Advisory Council for Regional Development. The state council is composed of the following ex-officio members: the Executive Director of the State Budget and Control Board or his designee, the Director of the Department of Health and Environmental Control or his designee, and a representative of the Regional Councils of Government, selected by the Regional Councils of Government . In addition, the state council shall include nine members, three appointed by the Governor, three appointed by the President Pro Tempore of the Senate, and three appointed by the Speaker of the House of Representatives. Notwithstanding Section 8-13-770, members of the General Assembly may be appointed to serve by the President Pro Tempore of the Senate and the Speaker of the House of Representatives, and members so appointed shall serve ex officio. Appointed members shall serve terms coterminous with the term of their appointing authority or their term of office if a member of the General Assembly. Any person appointed to fill a vacancy on the Advisory Council shall be appointed in the same manner as the original appointee and shall serve for the remainder of the unexpired term. Any member is eligible for reappointment and a member shall serve until a successor is appointed and qualifies. The Governor shall select the chairman.
A majority of the membership of the Advisory Council constitutes a quorum. The Advisory Council serves in an advisory and consultative capacity to assist the division in the performance of its duties. Further, the state council shall identify funding, programs and decisions that affect infrastructure development, and make recommendations concerning these matters in order that state decision making is oriented to supporting the creation, development, and effective implementation of state and regional comprehensive infrastructure development plans.

Section 11-42-80. Every state agency and program that licenses, permits, regulates, or otherwise sanctions activities by government entities and programs related to infrastructure development is expressly authorized and required by this chapter to consider and determine whether a respective governmental regulatory decision is consistent with state and regional comprehensive infrastructure development plans.

Section 11-42-90. (A) The Regional Councils of Government shall serve as liaisons between the Division of Regional Development and the political subdivisions of this State. The Regional Councils of Government, utilizing among other things the infrastructure development plans of the local political subdivisions, shall develop and submit regional comprehensive infrastructure development plans to the Division of Regional Development. The political subdivisions must be encouraged to develop local comprehensive infrastructure development plans. The Regional Councils of Government shall coordinate and assist the political subdivisions in the development of these plans. The Regional Councils of Government also shall undertake and carry out such activities as necessary to assist the Division of Regional Development in coordinating, developing, and implementing a coordinated and comprehensive infrastructure development plan for the State. Such activities may include, but are not limited to, the following:
(1) The Regional Councils of Government shall assist the political subdivisions in creating and developing local comprehensive infrastructure development plans. The political subdivisions shall take into account future developmental needs regarding water and sewer, and communications when developing their plans.
(2) The Regional Councils of Government, utilizing the infrastructure development plans of the respective political subdivisions, among other things, shall assist the Division of Regional Development in coordinated and comprehensive planning on the state level and throughout the State including, but not limited to, assistance in the development of an infrastructure development plan for the State.
(3) The Regional Councils of Government, utilizing the infrastructure development plans of the respective political subdivisions shall assist the Division of Regional Development in defining the state's long-term goals, objectives, and priorities and implementing those goals, objectives, and priorities through a coordinated and comprehensive infrastructure development plan.
(B) The Regional Councils of Government shall establish recommended standards and procedures for preparation of local comprehensive infrastructure development plans, for implementation of infrastructure development plans, and for participation in the infrastructure development planning process. Such activities may include, but are not limited to, the following:
(1) As part of such recommended standards and procedures, the Regional Councils of Government shall establish elements which must be addressed and included in the infrastructure development plans of political subdivisions which are prepared as part of the coordinated and comprehensive planning process. These plans shall include, but are not limited to, water and sewer services and communications.
(2) The Regional Councils of Government shall establish recommended standards and procedures which must be used by the political subdivisions in developing, preparing, and implementing their infrastructure development plans. In establishing such standards and procedures, the Regional Councils of Government are authorized to differentiate among the political subdivisions based upon factors which the councils determine merit differentiation, such as total population, density of population, geographic features, the size of tax base, projected growth, the type and character of services furnished by local governments, the size of the budget, need, and other factors.
(3) The Regional Councils of Government, in developing planning procedures with respect to regionally important resources, shall focus on elements of regional districts with respect to developments of regional impact, and encourage interjurisdictional cooperation among the political subdivisions. The councils shall determine, in their judgment for each region, what constitutes developments of regional impact. Such determinations by the councils must be made for each region only after requesting any necessary information from their respective political subdivisions.
(C) The political subdivisions are encouraged to coordinate with and assist the Regional Councils of Government in developing local and regional comprehensive infrastructure development plans. Political subdivisions are encouraged to coordinate with the Regional Councils of Government in the analysis and preparation of these plans. The political subdivisions shall utilize information relating to water and sewer services and communications. Further, data relating to current population and projected growth, tax base, local budget information, geographic factors, other demographics, and other data considered necessary must be utilized by the Regional Councils of Government."

SECTION 75

DELETED

SECTION 76

TO PROHIBIT THE GEORGETOWN WATER AND SEWER DISTRICT IN GEORGETOWN COUNTY FROM FORECLOSING ON ANY LIEN RESULTING FROM THE FAILURE TO PAY A FEE ASSESSED BY THE DISTRICT ON UNDEVELOPED PROPERTY IN THE DISTRICT UNTIL THE PROPERTY TO WHICH THE LIEN HAS ATTACHED IS DEVELOPED.

A. The Georgetown Water and Sewer District in Georgetown County is prohibited from foreclosing on any lien resulting from the failure to pay a fee assessed by the district on undeveloped property in the district until the property to which the lien has attached is developed.

B. This section takes effect July 1, 1997.

SECTION 77

DELETED

SECTION 78

TO AMEND SECTION 44-93-160 OF THE 1976 CODE, RELATING TO FEES ON COMMERCIAL TREATMENT OF INFECTIOUS WASTE, SO AS TO REVISE SUCH FEES; TO AMEND SECTION 44-93-165, RELATING TO THE INFECTIOUS WASTE PROGRAM FUND, SO AS TO FURTHER PROVIDE FOR THE MANNER PAYMENTS ARE MADE INTO THE FUND; AND TO AMEND SECTION 44-93-210, RELATING TO THE ANNUAL ESTIMATE OF THE AMOUNT OF INFECTIOUS WASTE EXPECTED TO BE GENERATED IN THE STATE IN THE SUCCEEDING YEAR, SO AS TO REMOVE THE CAP ON THE AMOUNT OF WASTE A FACILITY MAY BURN AND PROVIDE THAT NO FACILITY MAY TREAT MORE THAN THE AMOUNT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL ALLOWS IT TO TREAT BY PERMIT.

A. Section 44-93-160(A) of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read:

"(A) There is a fee on the treatment of infectious waste in this State equal to thirty dollars a ton for the first one thousand five hundred tons in a month and eight dollars a ton in excess of one thousand five hundred tons a month on the pretreatment weight of infectious waste to be imposed upon facilities required to be permitted pursuant to this chapter."

B. Section 44-93-165 of the 1976 Code, as added by Act 497 of 1994, is amended to read:

"Section 44-93-165. The department shall establish an Infectious Waste Program Fund to ensure the availability of funds to carry out the department's responsibilities under this chapter. This fund must be financed by the fees imposed pursuant to Section 44-93-160. From the revenue derived from the fees on infectious waste, an amount equal to eight dollars per a ton for the first one thousand five hundred tons in a month must be deposited into the Infectious Waste Program Fund."

C. Section 44-93-210 of the 1976 Code, as last amended by Act 307 of 1996, is further amended to read:

"Section 44-93-210. (A) Annually the department shall estimate and publish the amount of infectious waste it expects to be generated within this State during the succeeding calendar year. No permitted infectious waste incinerator treatment facility may burn treat more than one-twelfth of the annual estimate of infectious waste during any one month of the year to which the estimate applies the amount the department allows it to treat by permit. However, at no time may the limit on the amount of infectious waste burned in a month be less than fifteen hundred tons.
(B) For purposes of this section, a permitted infectious waste incinerator treatment facility means a site where infectious waste is incinerated regardless of the number of incinerator units or the ownership of the units."

D. This section takes effect July 1, 1997.

SECTION 79

TO AMEND SECTION 4-37-30 OF THE 1976 CODE, RELATING TO LOCAL SALES AND USE TAXES FOR TRANSPORTATION FACILITIES, SO AS TO PROVIDE THAT THE TAX MAY BE IMPOSED FOR SINGLE OR MULTIPLE PROJECTS, TO CLARIFY THE TYPES OF PROJECTS FOR WHICH THE PROCEEDS OF THE TAX ARE TO BE USED, TO REQUIRE THAT THE REFERENDUM HELD BEFORE A TAX MAY BE IMPOSED NOT BE HELD MORE OFTEN THAN ONCE IN TWELVE MONTHS AND MUST BE HELD ON THE TUESDAY FOLLOWING THE FIRST MONDAY IN NOVEMBER, AND TO DELETE OBSOLETE PROVISIONS; AND TO AMEND SECTION 4-37-20, RELATING TO THE RIGHTS AND POWERS OF TRANSPORTATION AUTHORITIES, SO AS TO REMOVE THE POWER OF EXERCISING EMINENT DOMAIN.

A. Section 4-37-30(A) of the 1976 Code, as added by Act 52 of 1995, is amended to read:

"(A) Subject to the requirements of this section, the governing body of a county may by ordinance impose a one percent sales and use tax within its jurisdiction for a single project or for multiple projects and for a specific period of time to collect a limited amount of money.
(1) The governing body of a county may vote to impose the tax authorized by this section, subject to a referendum, by enacting an ordinance. The ordinance must specify:
(a) the project or projects and a description of the project or projects for which the proceeds of the tax are to be used, which may include projects located within or without, or both within and without, the boundaries of the county imposing the tax and which may include:
(i) highways, roads, streets, bridges, and other transportation-related projects facilities including, but not limited to, drainage facilities relating to the highways, roads, streets, bridges, and other transportation-related projects;
(ii) jointly-operated projects, of the type specified in sub-subitem (i), of the county and South Carolina Department of Transportation; or
(iii) projects, of the type specified in sub-subitem (i), operated by the county or jointly-operated projects of the county and other governmental entities.;
(b) the maximum time, stated in calendar years or calendar quarters, or a combination of them, not to exceed twenty-five years or the length of payment for the each project whichever is shorter in length, for which the tax may be imposed;
(c) the estimated capital cost of the project or projects to be funded in whole or in part from proceeds of the tax and the principal amount of bonds to be supported by the tax; and
(d) the anticipated year the tax will end.
(2) Upon receipt of the ordinance, the county election commission shall conduct a referendum on the question of imposing the optional special sales and use tax in the jurisdiction. If the ordinance is received prior to January 1, 1996, the referendum must be held on the first Tuesday occurring sixty days after the election commission receives the ordinance. If that Tuesday is a legal holiday, then the referendum must be held on the next succeeding Tuesday that is not a holiday. If the ordinance is received on January 1, 1996, or thereafter, the referendum must only be held at the time of a general election. If the ordinance is received prior to January 1, 1998, a referendum for this purpose may be held on the Tuesday following the first Monday in November; however, if the ordinance is received on January 1, 1998, or thereafter, a referendum for this purpose must be held at the time of the general election. The commission shall publish the date and purpose of the referendum once a week for four consecutive weeks immediately preceding the date of the referendum, in a newspaper of general circulation in the jurisdiction. A public hearing must be conducted at least fourteen days before the referendum, after publication of a notice setting forth the date, time, and location of the public hearing. The notice must be published in a newspaper of general circulation in the county at least fourteen days before the date fixed for the public hearing.
(3) A separate question must be included on the referendum ballot for each purpose and the question must read substantially as follows:
'I approve a special one percent sales and use tax to be imposed in (county) for not more than (time) to fund the following project or projects:
for _______ $ _________

Yes _____

No _____

Project (2), etc.'
In addition, the referendum shall contain a question on the authorization of general obligation bonds under the exemption provided in Section 14(6), Article X of the Constitution of South Carolina, 1895, so that revenues derived from the imposition of the optional sales and use tax may be pledged to the repayment of the bonds. The additional question must read substantially as follows:
'I approve the issuance of not exceeding $ _____ of general obligation bonds of _____ County, maturing over a period not to exceed ___ years to fund the _____ project or projects.

Yes ____

No ____'

If the referendum on the question relating to the issuance of general obligation bonds is approved, the county may issue bonds in an amount sufficient to fund the expenses of the project or projects.
(4) All qualified electors desiring to vote in favor of imposing the tax for a particular purpose shall vote 'yes' and all qualified electors opposed to levying the tax for a particular purpose shall vote 'no'. If a majority of the votes cast are in favor of imposing the tax for one or more of the specified purposes, then the tax is imposed as provided in this section; otherwise, the tax is not imposed. The election commission shall conduct the referendum under the election laws of this State, mutatis mutandis, and shall certify the result no later than sixty days after the date of the referendum to the appropriate governing body and to the Department of Revenue. Included in the certification must be the maximum cost of the project or projects or facilities to be funded in whole or in part from proceeds of the tax, the maximum time specified for the imposition of the tax, and the principal amount of bonds to be supported by the tax receiving a favorable vote. Expenses of the referendum must be paid by the jurisdiction conducting the referendum. If the tax is approved in the referendum, the tax is imposed effective the first day of the month occurring one hundred eighty days after the date of the referendum. If the certification is not timely made to the Department of Revenue, the imposition is postponed for twelve months.
(5) The tax terminates on the earlier of:
(a) the final day of the maximum time specified for the imposition; or
(b) the end of the calendar month during which the Department of Revenue determines that the tax has raised revenues sufficient to provide the greater of either the cost of the project or projects as approved in the referendum or the cost to amortize all debts related to the approved projects.
(6) When the optional sales and use tax is imposed, the governing body of the jurisdiction authorizing the referendum for the tax shall by definition include more than one item as defined in (a)(i) and (a)(ii) as long as the projects are connected and form a single transportation system to describe the single project or multiple projects for which the proceeds of the tax are to be used.
(7) Amounts collected in excess of the required proceeds must first be applied, if necessary, to complete each project for which the tax was imposed. Any additional revenue collected above the specified amount must be applied to the reduction of debt principal of the imposing political subdivision on transportation infrastructure debts only.
(8) The tax levied pursuant to this section must be administered and collected by the Department of Revenue in the same manner that other sales and use taxes are collected. The department may prescribe the amounts which may be added to the sales price because of the tax.
(9) The tax authorized by this section is in addition to all other local sales and use taxes and applies to the gross proceeds of sales in the applicable jurisdiction which are subject to the tax imposed by Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The gross proceeds of the sale of items subject to a maximum tax in Chapter 36 of Title 12 are exempt from the tax imposed by this section. The gross proceeds of the sale of food lawfully purchased with United States Department of Agriculture food stamps are exempt from the tax imposed by this section. The tax imposed by this section also applies to tangible personal property subject to the use tax in Article 13, Chapter 36 of Title 12.
(10) Taxpayers required to remit taxes under Article 13, Chapter 36 of Title 12 shall must identify the county in which the tangible personal property purchase at retail is stored, used, or consumed in this State.
(11) Utilities are required to report sales in the county in which consumption of the tangible personal property occurs.
(12) A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county shall separately report in his sales tax return the total gross proceeds from business done in each county.
(13) The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under this section in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the special local sales and use tax provided in this section if a verified copy of the contract is filed with the Department of Revenue within six months after the imposition of the special local sales and use tax.
(14) Notwithstanding the imposition date of the special local sales and use tax authorized pursuant to this section, with respect to services that are regularly billed on a monthly basis, the special local sales and use tax is imposed beginning on the first day of the billing period beginning on or after the imposition date.
(15) The revenues of the tax collected in each county under this section must be remitted to the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues and all interest earned on the revenues while on deposit with the State Treasurer quarterly to the county in which the tax is imposed and these revenues and interest earnings must be used only for the purpose stated in the imposition ordinance. The State Treasurer may correct misallocation costs or refunds by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocation.
(16) The Department of Revenue shall furnish data to the State Treasurer and to the counties receiving revenues for the purpose of calculating distributions and estimating revenues. The information which must be supplied to counties upon request includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information about a specific taxpayer is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240.
(17) The Department of Revenue may promulgate regulations necessary to implement this section."

B. Section 4-37-20 of the 1976 Code, as added by Act 52 of 1995, is amended to read:

"Section 4-37-20. The board of the authority has all the rights and powers of a public body, politic and corporate of this State including, without limitation, all the rights and powers necessary or convenient to manage the business and affairs of the authority and to take action as it may consider advisable, necessary, or convenient in carrying out its powers including, but not limited to, the following rights and powers:
(1) to have perpetual succession;
(2) to sue and be sued;
(3) to adopt, use, and alter a seal;
(4) to make and amend bylaws for regulation of its affairs consistent with the provisions of this chapter;
(5) to acquire by gift, deed or easement, purchase, hold, use, improve, lease, mortgage, pledge, sell, transfer, and dispose of any property, real, personal, or mixed, or any interest in any property, or revenues of the authority as security for notes, bonds, evidences of indebtedness, or other obligations of the authority;
(6) to borrow money, make and issue notes, bonds, and other evidences of indebtedness; to secure the payment of the obligations or any part by mortgage, lien, pledge, or deed of trust, on any of its property, contracts, franchises, or revenues;
(7) to make contracts, including service contracts with a person, corporation, or partnership including, without limitation, the South Carolina Department of Transportation, to provide the facilities and services provided herein; and
(8) to exercise the powers of eminent domain; and
(9) execute all instruments necessary or convenient for the carrying out of business.
The board of the authority is not authorized to exercise the powers of eminent domain; however, it may recommend to the county governing body that property be acquired through eminent domain. The county governing body must determine if the property is to be acquired through eminent domain and, if so, to commence the eminent domain proceedings."

SECTION 80

DELETED

END OF PART II