South Carolina General Assembly

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

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PART II                                                                        PAGE 535

 1                       PART II
 2
 3                       PERMANENT PROVISIONS
 4
 5
 6                       SECTION 1
 7
 8     The Code Commissioner is directed to include all permanent general laws in this Part in the next edition of the Code of
 9     Laws of South Carolina, 1976, and all supplements to the Code.
10
11                       SECTION 2
12
13     DELETED
14
15                       SECTION 3
16
17     TO AMEND SECTION 38-7-30, AS AMENDED, OF THE 1976 CODE, RELATING TO THE TAX ON FIRE
18     INSURERS TO COVER THE EXPENSES OF INSPECTIONS AND INVESTIGATIONS, SO AS TO
19     PROVIDE, AMONG OTHER THINGS, FOR THE USE OF FIFTY PERCENT OF THE ONE PERCENT TAX
20     LEVIED IN THIS SECTION AND FOR AN ANNUAL REPORT OF THE DEPARTMENT OF LABOR,
21     LICENSING AND REGULATION.
22
23     A.   Section 38-7-30 of the 1976 Code, as amended by Section 534 of Act 181 of 1993, is further amended to read:
24
25            "Section 38-7-30.   Any expenses, including expenses of counsel, detectives, and officers, incurred by the
26     discrimination in rates, must be defrayed by the fire insurance companies doing business in this State, and a tax of one
27     percent on the gross premium receipts less premiums returned on canceled policy contracts and less dividends and
28     returns of unabsorbed premium deposits of all fire insurance companies is levied for this purpose, to be collected by the
29     director or his designee as other taxes on fire insurance companies are collected.  The director or his designee shall keep
30     a separate account of all monies received and disbursed under the provisions of this section and shall include the
31     account in his annual report.  Fifty percent of the one percent tax levied in this section must be directed to the Division
32     of Fire and Life Safety of the Department of Labor, Licensing and Regulation to be used only for expenses of this
33     division.  For fiscal year 1997-98 only, the fifty percent of the tax levied by this section that is directed to the
34     Department of Labor, Licensing and Regulation is capped at $2,567,325.  The department shall report annually to the
35     Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee where any
36     growth above the base authorization for the preceding is expended and for what purposes within the Division of Fire
37     and Life Safety."
38
39     B.    This section takes effect July 1, 1997.


PART II PAGE 536 1 SECTION 4 2 3 TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY 4 ADDING CHAPTER 4 SO AS TO ESTABLISH THE SOUTH CAROLINA TUITION PREPAYMENT 5 PROGRAM WITHIN THE SOUTH CAROLINA BUDGET AND CONTROL BOARD THROUGH WHICH 6 TUITION ASSOCIATED WITH PUBLIC POST-SECONDARY EDUCATION MAY BE PAID IN ADVANCE 7 AND FIXED AT A GUARANTEED LEVEL FOR THE DURATION OF UNDERGRADUATE 8 ENROLLMENT. 9 10 A. Title 59 of the 1976 Code is amended by adding: 11 12 "CHAPTER 4 13 14 South Carolina Tuition Prepayment Program 15 16 Section 59-4-10. This chapter may be cited as the South Carolina Tuition Prepayment Program Act'. 17 18 Section 59-4-20. As used in this chapter: 19 (1) Advisory board' means the Advisory Board of the South Carolina Tuition Prepayment Program. 20 (2) Board' means the State Budget and Control Board. 21 (3) College or university' means a state-chartered four-year public educational institution of higher learning 22 located in this State. 23 (4) Contributor' means a person who makes or is obligated to make advance payments in accordance with a 24 prepaid tuition contract. 25 (5) Designated beneficiary' means the individual who is designated as the beneficiary of amounts paid or to be 26 paid to the Tuition Prepayment Program or, in the case of a change in beneficiaries as permitted under this chapter, the 27 individual who is the new beneficiary. 28 (6) Director' means the head of the South Carolina Tuition Prepayment Program. 29 (7) Fund' means the South Carolina Tuition Prepayment Fund. 30 (8) Prepaid tuition contract' means the contract entered into by the Director of the South Carolina Tuition 31 Prepayment Program or his designee on behalf of the program and a contributor pursuant to this chapter for the advance 32 payment by the contributor of undergraduate tuition at a fixed, guaranteed level for a designated beneficiary to attend a 33 four-year public educational institution of higher learning in the State or to another educational institution of higher 34 learning that may be provided in this chapter to which the designated beneficiary is admitted. 35 (9) Program' means the South Carolina Tuition Prepayment Program. 36 (10) Tuition' means the amount charged by an educational institution of higher learning for registering for a credit 37 hour of undergraduate instruction and must not be construed to mean any other fees, charges, or costs of textbooks. 38 39 Section 59-4-30. (A) The South Carolina Tuition Prepayment Program is created as a program within the 40 Budget and Control Board. The chief administrative and operating official for the program is the director, who must be 41 appointed and supervised by the executive director of the board. The director must be a state official.


PART II PAGE 537 1 (B) To assist the board in its responsibilities there is created the advisory board of the program. The advisory 2 board shall consult and advise the board on all aspects of investment policy, guidelines, and strategy, as well as the costs 3 and termination and withdrawal options of the prepaid tuition contracts. The advisory board must have an opportunity 4 to comment and advise the board before the adoption of investment policies, guidelines, and strategies for the fund. 5 (C) The advisory board shall consist of five members appointed by the Governor, with the advice and consent of 6 the Senate. Each member shall possess knowledge, skill, and experience in one or more of the following areas: 7 accounting, actuarial science, risk management, finance, banking, or investment management. The members shall serve 8 five year terms, except that in making the initial appointment the Governor shall appoint two members to terms of three 9 years, two members to terms of four years, and one member to a term of five years. A person appointed to fill a 10 vacancy on the advisory board must be appointed in this manner and shall serve for the remainder of the unexpired 11 term. A member is eligible for reappointment and a member shall serve until a successor is appointed and qualified. To 12 avoid a vacancy on the advisory board, a member appointed by the Governor is authorized to exercise all of the duties 13 and powers of the position until the Senate votes upon the nomination. 14 (D) The Governor shall designate one member of the advisory board to serve as chairman. A majority of the 15 membership constitutes a quorum. The members of the advisory board are not entitled to a salary for their service but 16 shall receive per diem, subsistence, and mileage as provided by law for members of state boards, committees, and 17 commissions. Administrative support for the advisory board is provided by the board. 18 (E) With the assistance of the advisory board, the board is responsible for developing and adopting the investment 19 policies, guidelines, and strategies for the fund and determining the costs, termination, and withdrawal options of the 20 prepaid tuition contracts. The board, with the assistance of the advisory board, also shall: 21 (1) prescribe the terms and conditions of the prepaid tuition contracts, including the terms and conditions 22 under which payments may be withdrawn from the fund. However, the prepaid tuition contract must include a more 23 than de minimis penalty on a refund which is not used for payment of tuition of the designated beneficiary or made on 24 account of the death or disability of the designated beneficiary; 25 (2) prescribe the requirements, procedures, and guidelines regarding prepaid tuition contracts; 26 (3) provide for the receipt of advance payments which must be in cash, but may be in lump sums or 27 installments; 28 (4) prescribe regulations governing the program; and 29 (5) prescribe fees and costs for services provided by the program. 30 31 Section 59-4-40. The program shall implement the provisions of this chapter in accordance with its legislative 32 intent including, but not limited to, the following: 33 (1) enter into all necessary contracts for services, supplies, goods, space, and equipment including the authority to 34 hire temporary consultants, actuaries, managers, legal counsel, auditors, marketing services, and other professional and 35 technical expertise; 36 (2) invest and manage the fund as directed by the board; 37 (3) accept gifts, grants, and other financial assistance from any source; 38 (4) establish and implement application procedures, prepare and distribute necessary forms and documents, and 39 prepare and distribute the annual reports; 40 (5) establish other policies, procedures, and criteria to implement and administer the provisions of the chapter; 41 (6) establish eligibility requirements for designated beneficiaries including, but not limited to, a requirement of


PART II PAGE 538 1 residency in this State on the date that a prepaid tuition contract is signed by all parties; 2 (7) provide adequate safeguards to prevent contributions on behalf of a designated beneficiary in excess of those 3 necessary to provide for the qualified higher education expenses of the designated beneficiary; and 4 (8) prepare reports required by state and federal law. 5 6 Section 59-4-50. The fund is created as a nonpublic special, revolving fund and established and maintained by 7 the State of South Carolina. The fund consists of monies received from contributors, state appropriations, other monies 8 acquired from governmental and private sources, and proceeds from the investments of the fund. The fund is expended 9 only for the purposes of this chapter. There must be a separate accounting for each designated beneficiary. 10 The fund must be invested as directed by the board after the advice from the advisory board. However, interest in 11 the fund or any portion of the fund must not be used as security for a loan. An attempt to use the fund, a contract, or a 12 portion of either as security for a loan is void. The fund may be invested in any manner authorized by law. The custody 13 and management of the fund are directed by the board. The earnings from fund investments become a part of the fund 14 and expended only for the purposes of this chapter. 15 16 Section 59-4-60. (A) The director shall construct prepaid tuition contracts in accordance with the provisions of 17 this chapter and at the direction of the board. The contents of the contracts include, but are not limited to the: 18 (1) amount of the payment or payments, which must be made in cash only, and the number of payments 19 required from the contributor on behalf of the designated beneficiary; 20 (2) terms and conditions under which contributors remit payments, including the date of the payments; 21 (3) provisions for late payment charges, defaults, withdrawals, refunds, and penalties; 22 (4) name and date of birth of the designated beneficiary upon whose behalf the contract is made and the 23 terms and conditions under which another person may be substituted as then designated beneficiary including, but not 24 limited to, additional payments that may be required; 25 (5) terms and conditions for termination of the contract including refunds, withdrawals, or transfers of 26 prepayments, and the name of the persons or combination of persons entitled to terminate the contract. However, the 27 program must impose a more than de minimis penalty on a refund of earnings from the account which are not: 28 (a) used for qualified higher education expenses for the designated beneficiary; or 29 (b) made on account of the death or disability of the designated beneficiary; 30 (6) time limitations within which the designated beneficiary must claim benefits through the program; 31 (7) number of credit hours contracted for by the contributor; 32 (8) contractual obligation of the program to the designated beneficiary to provide for the payment of a 33 specified number of credit hours of undergraduate instruction at an educational institution of higher learning, not to 34 exceed the average number of credit hours required for the conference of the degree that corresponds to the plan 35 purchased on behalf of the designated beneficiary and to exceed the actual cost of tuition; 36 (9) provision that: 37 (a) all payments to the program must be made in cash only; 38 (b) an interest in the program, the contract, or in either, may not be used as security for a loan; and 39 (c) a contributor or designated beneficiary may not direct the investment of contributions to the program 40 or earnings on the program; 41 (10) rights and obligations of the contributor and the fund; and


PART II PAGE 539 1 (11) terms and conditions which the director determines necessary and appropriate. 2 (B) A prepaid tuition contract shall provide that a contract which has not been terminated or the benefits exercised 3 by the time the designated beneficiary reaches his thirtieth birthday is terminated. Not more than forty-eight continuous 4 months expended by a designated beneficiary as an active duty member of any branch of the armed services of the State 5 of South Carolina or the United States must be added to the time specified pursuant to this subsection. 6 (C) A prepaid tuition contract guarantees the full payment of tuition at a South Carolina public college or 7 university or a South Carolina public two-year educational institution of higher learning for the number of credit hours 8 purchased. 9 (D) Nothing in this chapter must be construed as a promise or guarantee that a designated beneficiary may be 10 admitted to an educational institution of higher learning, allowed to continue enrollment at an educational institution of 11 higher learning after admission, or graduated from an institution of higher learning. 12 (E) Information that identifies the contributors or designated beneficiaries of a prepaid tuition contract and their 13 advance payment account activities is confidential and must not be disclosed without the consent of the designated 14 beneficiary, in accordance with a judicial order, or to those persons with an official need to access the information. 15 (F) An act or undertaking of the program shall not constitute a debt of the State or any agency, department, 16 institution, or political subdivision, or a pledge of the full faith and credit of the State or any agency, department, 17 institution, or political subdivision, but is payable solely from the fund. 18 19 Section 59-4-70. (A) As authorized by the board, up to one percent of the fund each year may be applied and 20 retained toward the costs of administering the program. 21 (B) The General Assembly shall provide an appropriation from the state's general fund for the necessary costs to 22 initiate the administration and operation of the program. 23 (C) All of the agencies, departments, and institutions of higher learning of the State are required to provide 24 reasonable cooperation and assistance to the board and the director in the implementation of the program under this 25 chapter. 26 27 Section 59-4-80. The director or his designee shall prepare an annual financial report of the fund and the 28 program. This report must be submitted to the board and the advisory board on the date required by the board and in the 29 format prescribed by the board. The program and the fund also must be subject to audit by the State Auditor or his 30 designee. The director or his designee annually shall evaluate the actuarial soundness of the fund and report this 31 information to the board and the advisory board. 32 33 Section 59-4-90. The director shall solicit answers to applicable ruling requests from the Internal Revenue 34 Service regarding the tax status of fees paid pursuant to a prepaid tuition contract to the contributor and to the 35 designated beneficiary and from the Securities and Exchange Commission regarding the application of federal securities 36 laws to the program. The director shall make the status of these requests known to the board and the advisory board. 37 38 Section 59-4-100. The Comptroller General and the chief finance officers of state agencies, departments, and 39 institutions maintaining separate payroll accounts, at the request of a state employee, may collect and pay by payroll 40 deduction to the fund the appropriate payment in accordance with a prepaid tuition contract.


PART II PAGE 540 1 Section 59-4-110. Notwithstanding any other provision of law, neither the program nor the fund is liable for 2 income taxes, and neither the program nor the fund is liable for local taxes, fees, or assessments. In addition, 3 contributions to the fund credited to a beneficiary's account do not entitle the contributor to a deduction for purposes of 4 the state individual income tax, nor must these contributions be included in the South Carolina gross income of the 5 beneficiary or anyone required to support the beneficiary. Earnings on the account, tuition waivers, credits or payments 6 for tuition, or any money or payout that the designated beneficiary receives or from which he benefits are included in 7 the gross income of the beneficiary or anyone required to support the beneficiary." 8 9 B. This act takes effect July 1, 1997. 10 11 SECTION 5 12 13 TO AMEND SECTION 12-6-1120 OF THE 1976 CODE, RELATING TO THE COMPUTATION OF GROSS 14 INCOME, SO AS TO PROVIDE THAT GROSS INCOME DOES NOT INCLUDE AMOUNTS EXCLUDED 15 BY THE SOUTH CAROLINA TUITION PREPAYMENT PROGRAM. 16 17 Section 12-6-1120 of the 1976 Code, as added by Act 76 of 1995, is amended by adding an appropriately numbered 18 item to read: 19 20 "( ) South Carolina gross income does not include the amounts excluded by Section 59-4-110 of the South 21 Carolina Tuition Prepayment Program." 22 23 SECTION 6 24 25 TO AMEND SECTION 59-39-100 OF THE 1976 CODE, RELATING TO THE ISSUANCE OF UNIFORM 26 HIGH SCHOOL DIPLOMAS AND THE NUMBER OF UNITS REQUIRED TO RECEIVE A DIPLOMA, SO 27 AS TO PROVIDE THAT, BEGINNING WITH THE NINTH GRADE CLASS OF SCHOOL YEAR 1997-98 28 AND THEREAFTER, THE NUMBER OF UNITS REQUIRED FOR A DIPLOMA IS TWENTY-FOUR, 29 RATHER THAN TWENTY, TO SPECIFY WHAT THESE FOUR ADDITIONAL UNITS MUST CONSIST OF, 30 AND TO REVISE THE MANNER IN WHICH OTHER UNITS MAY BE APPLIED TOWARD THESE 31 REQUIREMENTS. 32 33 Section 59-39-100 of the 1976 Code is amended to read: 34 35 "Section 59-39-100. Diplomas issued to graduates of accredited high schools within this State must be uniform in 36 every respect and particularly as to color, size, lettering, and marking. The number of units required for a state high 37 school diploma is twenty units as prescribed by the State Board of Education. Beginning in the 1986-87 academic year, 38 a minimum of 3 three units must be earned in mathematics and a minimum of 2 two units must be earned in science. 39 One unit in computer science, if approved by the State Department of Education for this purpose, may be counted 40 toward the mathematics requirement. 41 Students who earn one unit in science and six or more units in a specific occupational service area will meet the


PART II PAGE 541 1 science requirements for a state high school diploma. Vocational programs operating on a 3-2-1 structure may count 2 prevocational education as one of the six required units. 3 Beginning with the ninth grade class of school year 1997-98 and thereafter, the number of units required for a high 4 school diploma is twenty-four units as prescribed by the State Board of Education by regulation , with one additional 5 unit required in mathematics, science, and computer science to include keyboarding. For students in a college 6 preparatory track as defined by the state board, one additional unit must be earned in a foreign language, and for 7 students in a track designed to enter the work force as defined by the state board, one additional vocational unit must be 8 earned. Beginning with the ninth grade class of school year 1997-98, if a student counts one unit of computer science 9 toward his mathematics requirement as permitted above, one additional unit of computer science must be earned. 10 Nothing herein prohibits local school boards of trustees from awarding recognition to students who complete 11 additional units and credits beyond those required by this section." 12 13 SECTION 7 14 15 DELETED 16 17 SECTION 8 18 19 DELETED 20 21 SECTION 9 22 23 DELETED 24 25 SECTION 10 26 27 DELETED 28 29 SECTION 11 30 31 DELETED (RULED NON-GERMANE) 32 33 SECTION 12 34 35 DELETED 36 37 SECTION 13 38 39 TO AMEND SECTION 11-11-140 OF THE 1976 CODE, RELATING TO LIMITATIONS ON GENERAL 40 FUND APPROPRIATIONS FOR A FISCAL YEAR AND THE USE OF SURPLUS REVENUES, SO AS TO 41 DELETE PROVISIONS RELATING TO LIMITATIONS ON ANNUAL GENERAL FUND REVENUES AND


PART II PAGE 542 1 USES OF SURPLUS REVENUES TO REFLECT IN THE SECTION THE GOVERNOR'S DUTY ANNUALLY 2 TO PREPARE A BUDGET WITH RESPECT TO CHANGES IN ACCOUNTING METHODS, AND TO 3 PROHIBIT THE GOVERNOR'S ANNUAL BUDGET RECOMMENDATION FROM PROPOSING THE 4 APPROPRIATION OF SURPLUS GENERAL FUND REVENUES IN EXCESS OF AMOUNTS OFFICIALLY 5 RECOGNIZED AS SUCH BY THE BOARD OF ECONOMIC ADVISORS, AND TO PROHIBIT THE 6 APPROPRIATION OF SURPLUS GENERAL FUND REVENUES IN EXCESS OF AMOUNTS OFFICIALLY 7 RECOGNIZED AS SUCH BY THE BOARD OF ECONOMIC ADVISORS. 8 9 A. Section 11-11-140 of the 1976 Code, as last amended by Act 142 of 1995, is further amended to read: 10 11 "Section 11-11-140. (A) (1) General fund appropriations in the annual general appropriations act may not 12 exceed the base revenue estimate as calculated pursuant to subsection (B) or as adjusted pursuant to subsection (C). In 13 the Governor's annual budget recommendation to the General Assembly, no recommendation may be made for the 14 appropriation of surplus general fund revenues in excess of amounts officially recognized as such by the Board of 15 Economic Advisors. 16 (2) In any bill or joint resolution appropriating general fund revenues, no surplus general fund revenue may 17 be appropriated in excess of amounts officially recognized as such by the Board of Economic Advisors. 18 (B) For purposes of this section, the base revenue estimate is the lesser of: 19 (1) (a) the total of recurring general fund revenues collected in the fiscal year completed before the General 20 Assembly first considers the annual general appropriations bill increased by any recurring general fund revenue 21 enhancements occurring in the current fiscal year if such enhancements are certified by the Board of Economic 22 Advisors; 23 (b) increased by a sum equal to seventy-five percent of the amount the general fund revenue estimate of 24 the Board of Economic Advisors for the upcoming fiscal year exceeds the amount in subitem (a) of this item; or 25 (2) the general fund revenue estimate of the Board of Economic Advisors for the upcoming fiscal year. 26 (C) The base revenue estimate may be increased or decreased (1) by any amendment to the general appropriations 27 bill which affects the Board of Economic Advisors revenue estimate or (2) enacted legislation which affects the board's 28 estimate, if the board certifies in writing the change in estimated revenue. 29 (D) Appropriations from surplus may not be made before the first meeting of the General Assembly following the 30 Comptroller General's closing of the books on the fiscal year in which the surplus occurred and may be appropriated 31 only for nonrecurring purposes. 32 (E) In making a the annual budget recommendation to the General Assembly for the fiscal year 1994-95 budget, 33 and for each year thereafter, the Budget and Control Board Governor shall not incorporate or realize any revenue 34 derived on the basis of any future change in a method of accounting, as determined by the Budget and Control Board, 35 unless such the change in a method of accounting is based on statutory authority specifically granted to the Budget and 36 Control Board or a statutory enactment changing the method of accounting. 37 (F) Notwithstanding the provisions of subsection (D), appropriations from surplus may not be expended before the 38 Comptroller General's closing of the books on the fiscal year in which the surplus occurred. The surplus in this 39 subsection, that is the calculated set-aside as defined in this section, after reduction by way of transfer to the general 40 fund of such amount as necessary to offset any recognized budget shortfall for the fiscal year in which the set-aside 41 surplus occurred, is appropriated for deposit in the State Property Tax Relief Fund. After the first year that the State


PART II PAGE 543 1 Property Tax Relief Fund is fully funded, the procedure in subsection (D) must be applied." 2 3 B. This section takes effect July 1, 1997. 4 5 SECTION 14 6 7 DELETED 8 9 SECTION 15 10 11 TO AMEND THE 1976 CODE BY ADDING SECTION 11-11-150 SO AS TO DELETE FROM 12 CALCULATIONS OF STATE GENERAL FUND REVENUES AMOUNTS NECESSARY IN A FISCAL YEAR 13 TO FUND THE TRUST FUND FOR STATE PROPERTY TAX RELIEF FUND, THE HOMESTEAD 14 EXEMPTION TRUST FUND, THE BUSINESS INVENTORY EXEMPTION REIMBURSEMENT TRUST 15 FUND, AND THE DEPRECIATION PROPERTY TAX REIMBURSEMENT TRUST FUND, TO PROVIDE 16 FOR THE TRANSFER TO THESE FUNDS THE REQUIRED AMOUNTS; TO PROVIDE THAT 17 UNEXPENDED BALANCES IN THESE FUNDS MUST BE TRANSFERRED TO THE GENERAL FUND OF 18 THE STATE, TO MAKE THESE FUNDS UNAVAILABLE FOR APPROPRIATION, TO PROVIDE FOR THE 19 ACCOUNTING FOR THESE REDUCTIONS, TO REQUIRE THE BOARD OF ECONOMIC ADVISORS TO 20 ACCOUNT FOR THESE TRUST FUNDS SEPARATELY IN REPORTS TO THE GOVERNOR AND THE 21 GENERAL ASSEMBLY, AND TO PROVIDE THAT THIS SECTION MUST NOT BE CONSTRUED AS 22 AFFECTING FUNDING LEVELS FOR PUBLIC EDUCATION; TO AMEND SECTIONS 11-11-330, 23 12-37-251, AND 12-37-450, ALL AS AMENDED, 12-37-935, 12-37-270, AND 12-37-280, RELATING TO THE 24 LOCAL GOVERNMENT FUND, THE STATE PROPERTY TAX RELIEF FUND, THE BUSINESS 25 INVENTORY TAX EXEMPTION REIMBURSEMENT, THE DEPRECIATION PROPERTY TAX 26 REIMBURSEMENT FUND, AND THE RESIDENTIAL AND HOMESTEAD EXEMPTION 27 REIMBURSEMENTS, SO AS TO CONFORM THESE PROVISIONS TO THE TRANSFER 28 REQUIREMENTS OF SECTION 11-11-150, RECONSTITUTE THESE FUNDS AND ACCOUNTS AS TRUST 29 FUNDS, EXTEND THE PHASE IN OF ADDITIONAL DEPRECIATION FROM THREE TO SIX YEARS, 30 DELETE OBSOLETE PROVISIONS, AND REVISE THE SCHEDULE OF REIMBURSEMENT FOR THE 31 RESIDENTIAL HOMESTEAD EXEMPTION; AND TO REDESIGNATE AND AMEND SECTION 6-27-45, 32 RELATING TO HOMESTEAD EXEMPTION REIMBURSEMENTS AS SECTION 6-1-45, AND CONFORM 33 IT TO THE TRANSFER REQUIREMENTS OF SECTION 11-11-150. 34 35 A. Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding: 36 37 "Section 11-11-150. (A) In calculating estimated state general fund revenues for a fiscal year there must be 38 deducted amounts sufficient to fund: 39 (1) the Trust Fund for State Property Tax Relief established pursuant to Section 11-11-330; 40 (2) the Homestead Exemption Trust Fund established pursuant to Section 12-37-270;


PART II PAGE 544 1 (3) the Depreciation Property Tax Reimbursement Trust Fund established pursuant to Section 12-37-935(B); 2 and 3 (4) the Inventory Tax Reimbursement Trust Fund established pursuant to Section 12-37-450. 4 (B) The amounts deducted from state general fund revenues pursuant to subsection (A) are automatically 5 transferred to the appropriate separate trust funds for the applicable fiscal year and are not available for appropriation. 6 For accounting purposes, this deduction is achieved by imposing a prorata reduction on each revenue source for the 7 general fund of this state excluding general fund revenue sources earmarked for public education. The Board of 8 Economic Advisors shall account for these trust funds separately from general fund revenues in reports to the Governor 9 and the General Assembly. 10 (C) All formulas calculated on state general fund revenues must reflect the reductions provided by this section. 11 (D) Unexpended balances in the trust funds specified in subsection (A) at the end of a fiscal year must be 12 transferred to the general fund of the State. 13 (E) The provisions of this section must not be construed as affecting funding levels for public education." 14 15 B. Section 6-27-45 of the 1976 Code, as added by Section 34, Part II, Act 145 of 1995, is redesignated Section 6-1-45 16 and amended to read: 17 18 "Section 6-1-45. Notwithstanding the amount appropriated in the annual general appropriations act for 19 "Homestead Exemption Reimbursement", there must be annually appropriated whatever amount is necessary to 20 reimburse the counties and municipalities of the State for all reimbursed homestead exemptions allowed in accordance 21 with the provisions of law. In addition to the amounts transferred to the Trust Fund for State Property Tax Relief and 22 the Homestead Exemption Reimbursement Trust Fund as provided in the annual general appropriations act, the 23 Comptroller General's Office shall transfer from the general fund whatever amount is necessary to reimburse counties 24 and municipalities for all state property tax relief and homestead exemptions allowed in accordance with the provisions 25 of law." 26 27 C. Section 11-11-330 of the 1976 Code, as last amended by Section 33A, Part II, Act 458 of 1996, is further amended 28 to read: 29 30 "Section 11-11-330. Funds credited to the Trust Fund for State Property Tax Relief Fund' must be used to 31 provide property tax relief in the manner prescribed in Section 12-37-251. The General Assembly shall appropriate 32 There is transferred to the fund for each fiscal year an amount sufficient to reimburse sums equal to the amount of taxes 33 that were not collected for school districts by reason of the exemption provided in Section 12-37-251." 34 35 D. Subsections (A) and (B) of Section 12-37-251 of the 1976 Code, as last amended by Act 458 of 1996, are further 36 amended to read: 37 38 "(A) The Trust Fund for State Property Tax Relief Fund shall be established at an amount equal to the revenue 39 necessary to fund a property tax exemption of one hundred thousand dollars based on the fair market value of property 40 classified pursuant to Section 12-43-220(c) calculated on the school operating millage imposed for tax year 1995, 41 excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital


PART II PAGE 545 1 construction. The 1995 tax year school operating millage is the base year millage for purposes of calculating the 2 amount necessary to fund the Trust Fund for State Property Tax Relief Fund in accordance with this section. However, 3 in years in which the values resulting from a county-wide reassessment and equalization program are implemented, the 4 base year millage must be adjusted to an equivalent millage rate in the manner that the Department of Revenue shall 5 prescribe. Funds distributed to a taxing district as provided in item (B) of this section must be used to provide a uniform 6 property tax exemption for all property in the taxing district which is classified pursuant to Section 12-43-220(c), 7 excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital 8 construction. 9 (B) School districts must be reimbursed, in the manner provided in Section 12-37-270, for the revenue lost as a 10 result of the homestead exemption provided in this section except that ninety percent of the reimbursement must be paid 11 in the last quarter of the calendar year in the last quarter of the calendar year on December first. " 12 13 E. Section 12-37-450 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read: 14 15 "Section 12-37-450. (A) The inventory of business establishments shall be exempt from property taxation as 16 follows: for the 1985 tax year, seventeen percent; for the 1986 tax years, fifty percent; for the 1987 and subsequent tax 17 years, one hundred percent. The exemption herein provided is conditional upon the appropriation by the State to the 18 municipalities and counties for each year an amount equal to tax revenue not collected by reason of the exemption. If 19 the appropriation for any year is less than the amount equal to the tax revenue not collected, the exemption shall be 20 proportionately reduced in the manner provided in (C) below. The exemption provided in this section is not allowed if 21 the return is received by the Commission after the date due or the tax due is received by the county or municipality after 22 the date due. 23 (B) Counties and municipalities must be reimbursed for the revenue lost as a result of the business inventory tax 24 exemption based on the 1987 tax year millage and 1987 tax year assessed value of inventories in the counties and 25 municipalities. If an amount of reimbursement to a political subdivision within a county is attributable to a separate 26 millage for debt service for any purpose, when that debt is paid, the appropriate reimbursement amount must be 27 redistributed proportionately to the other separate millages levied by the political subdivision within the county for the 28 1987 tax year. Notwithstanding amounts appropriated for the inventory tax exemption reimbursement, there There is 29 appropriated transferred annually from the general fund of the State to the Inventory Tax Reimbursement Trust Fund, 30 which is established in the State Treasury as a fund separate and distinct from the general fund of the State and all other 31 funds whatever amount is necessary to reimburse fully all counties and municipalities the required amount. The 32 Comptroller General shall make remittances of this reimbursement to counties and municipalities in four equal 33 payments. 34 (C) The South Carolina Tax Commission shall annually notify each county auditor of the fair market value of 35 merchant's inventory in the manner provided by Section 12-37-1420, which must be assessed at a six percent ratio and 36 entered on the tax duplicate. For the purpose of implementing the business inventory tax exemption provided in this 37 section, the assessed value will then be credited by seventeen percent for taxable year 1985, by fifty percent for taxable 38 year 1986, and by one hundred percent for taxable year 1987 and after 1987. If, for taxable years 1986 and 1987 the 39 State does not reimburse the counties and municipalities for the full amount of the revenue lost because of the applicable 40 exemption, the counties and municipalities shall credit the percentage reimbursed to the merchant's account and bill the 41 remainder to the merchant.


PART II PAGE 546 1 (D) Notwithstanding any other provision of law, business inventory exempted from property taxation in the 2 manner provided in this section is considered taxable property in an amount equal to the 1987 tax year assessed 3 valuation for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this 4 State and for purposes of computing the index of taxpaying ability' pursuant to item (3) of Section 59-20-20. 5 (E) Where a portion of a special purpose district is annexed to a municipality, and its service functions in the 6 annexed area are assumed by the municipality, the total amount remitted to the county and municipality under this 7 section shall not exceed the total amount which would be remitted to the two entities separately. However, the assessed 8 valuation and special purpose district tax levy for tax year 1987 with respect to the annexed portion of the special 9 purpose district must be taken into consideration in determining the proportionate share of the total allocation due to the 10 county and the municipality." 11 12 F. Section 12-37-935 of the 1976 Code, as added by Section 8A, Part II, Act 458 of 1996, is amended to read: 13 14 "Section 12-37-935. (A) Except as provided in Section 12-37-930 for custom molds and dies used in the conduct 15 of manufacturing electronic interconnection component assembly devices for computers and computer peripherals, and 16 equipment used in the manufacture of tires by manufacturers who employ more than five thousand employees in this 17 State and have over one billion dollars in capital investment in this State, the original cost must not be reduced more 18 than the percentage provided in the following schedule: 19 20 Property Tax Year Maximum Percentage Depreciation 21 Before 1997 80 percent 22 1997 83.3 81.65 percent 23 1998 86.6 84.43 percent 24 1999 87.21 percent 25 After 1998 1999 90 percent. 26 27 (B) There is established in the State Treasury a trust fund separate and distinct from the general fund of the State 28 and all other funds styled The Depreciation Property Tax Reimbursement Trust Fund. Annually, the General Assembly 29 shall appropriate there is transferred to this trust fund an amount sufficient to reimburse all local taxing entities the 30 amount of revenue not collected as a result of the additional depreciation more than eighty percent allowed for 31 manufacturer's machinery and equipment pursuant to this section. No reimbursement is allowed for any depreciation 32 allowed in connection with custom molds and dies used in the conduct of manufacturing electronic interconnection 33 component assembly devices for computers and computer peripherals and equipment used in the manufacture of tires 34 by manufacturers who employ more than five thousand employees in this State and have over one billion dollars in 35 capital investment in this State. Reimbursements must be paid from the fund in the manner provided in Section 36 12-37-270, mutatis mutandis". 37 38 (C) This section is effective for property tax years beginning after 1996. 39 40 G. Section 12-37-270 of the 1976 Code is amended to read:


PART II PAGE 547 1 "Section 12-37-270. There is established in the State Treasury the Homestead Exemption Reimbursement Trust 2 Fund, a fund separate and distinct from the general fund of the State and all other funds, to which is transferred in a 3 fiscal year an amount sufficient to pay the reimbursement provided by this section. The Comptroller General, from the 4 general fund of the State from this trust fund, shall annually pay to the county treasurer of the county in which the 5 dwelling is situate for the account of each county, school district or special district therein a sum equal to the amount of 6 taxes that was not collected for such county, school district or special district by reason of the exemption provided for in 7 Section 12-37-250 and shall also annually pay to the governing body of the municipality in which the dwelling is situate 8 a sum equal to the amount of taxes that was not collected for such municipality by reason of the exemption provided for 9 in Section 12-37-250; provided, the county treasurer and municipal governing body shall furnish the Comptroller 10 General on or before April first following the tax year, or during an extension authorized by the Comptroller General 11 not to exceed sixty days an accounting or statement as prescribed by the Comptroller General that reflects the amount of 12 county, municipal, school district or special district taxes that was not collected because of the exemption; and 13 provided, further, that any funds paid by the Comptroller General as the result of an erroneous or improper application 14 shall be returned to the Comptroller General for deposit in the general fund of the State. 15 Notwithstanding any other provisions of law, the Comptroller General shall purchase and distribute the 16 applications for the homestead exemption and the costs shall be from the appropriations for reimbursement for the 17 exemption Trust Fund. 18 The Comptroller General shall promulgate regulations as may be necessary to carry out the provisions herein." 19 20 H. Section 12-37-280 of the 1976 Code is amended to read: 21 22 "Section 12-37-280. Any county, municipality, school district, and special district in which a person who has 23 reached the age of sixty-five years receives a homestead property tax exemption shall be reimbursed for such exemption 24 from the general fund of the State Homestead Exemption Reimbursement Trust Fund. Such reimbursement shall be 25 made by the Comptroller General on an annual basis on such terms and subject to such conditions as he may prescribe. 26 Nothing contained in this section shall be construed as authority to grant property tax exemption other than as 27 provided for by the laws and Constitution of this State." 28 29 I. 1. Section 12-37-251(E) of the 1976 Code is amended to read: 30 31 "(E) In the year of reassessment the millage rate for all real and personal property must not exceed the rollback 32 millage, except that the rollback millage may be increased by the percentage increase in the consumer price index for 33 the year immediately preceding the year of reassessment. However, a school district's rollback millage may be 34 increased by the same percentage as the EFA inflation factor in the annual general appropriations act. Rollback millage 35 is calculated by dividing the prior year property tax revenues by the adjusted total assessed value applicable in the year 36 the values derived from a countywide equalization and reassessment program are implemented. This amount of assessed 37 value must be adjusted by deducting assessments added for property or improvements not previously taxed, for new 38 construction, and for renovation of existing structures." 39 40 2. Property which is subject to the rollback tax and millage must be considered when reimbursements for the 41 homestead exemption are made from the homestead exemption reimbursement trust fund as provided in subsection (H)


PART II PAGE 548 1 of this section. 2 3 J. This section takes effect July 1, 1997, and first applies for general fund revenues available for appropriation for 4 fiscal years beginning after June 30, 1998, and accounting for general fund revenues affecting appropriations for fiscal 5 year 1998-99. 6 7 SECTION 16 8 9 DELETED (RULED NON-GERMANE) 10 11 SECTION 17 12 13 TO AMEND THE 1976 CODE BY ADDING SECTION 59-39-101 SO AS TO PROVIDE THAT PUBLIC AND 14 NONPUBLIC HIGH SCHOOL GRADUATES OF THIS STATE WHO MEET CERTAIN SPECIFIED 15 CRITERIA SHALL RECEIVE A SUPERIOR ACADEMIC ACHIEVEMENT HIGH SCHOOL DIPLOMA, 16 AND ALSO SHALL RECEIVE A FIVE HUNDRED DOLLAR SCHOLARSHIP TO ATTEND ANY STATE- 17 SUPPORTED INSTITUTION OF HIGHER LEARNING OR TECHNICAL COLLEGE. 18 19 A. The 1976 Code is amended by adding: 20 21 "Section 59-39-101. (A) For the purpose of recognizing and rewarding outstanding performance and academic 22 achievement on the part of public and nonpublic school students, each high school graduate who meets the requirements 23 of this section beginning with the 1997-98 school year must be awarded a Superior Academic Achievement High 24 School Diploma. 25 (B) In order to qualify for a Superior Academic Achievement High School Diploma a student shall complete at 26 least twenty-four units as prescribed by the State Board of Education including: 27 (1) four units of English or language arts; 28 (2) four units of mathematics; 29 (3) four units of science; 30 (4) four units of social science or history, one unit of which must be U.S. History; 31 (5) two units of foreign or classical languages; 32 (6) one unit of computer science beginning with school year 1999-2000, and until school year 1999-2000 33 one additional elective unit must be completed instead of a unit in computer science; 34 (7) one unit of the arts or music, provided that a third unit of foreign or classical language may be substituted 35 for this arts or music requirement; 36 (8) one unit of physical education or health; and 37 (9) three elective units. 38 (C) A student who receives a Superior Academic Achievement High School Diploma and attends a public or 39 private South Carolina institution of higher learning or technical college shall receive a five hundred dollar scholarship 40 from the State paid to the institution. The State Department of Education shall furnish the Palmetto Fellows Scholarship 41 Program of the Commission on Higher Education with a list of those students each year who are awarded Superior


PART II PAGE 549 1 Academic Achievement Diplomas. The Palmetto Fellows Scholarship Program shall then distribute the scholarship 2 funds for such students to the appropriate institutions. 3 (D) Each district school board of trustees and the administrators of each nonpublic school are encouraged to make 4 provisions, through appropriate and adequate course offerings in each high school or through cooperative arrangements 5 with other schools, for students desiring to receive a Superior Academic Achievement High School Diploma. 6 (E) The State Board of Education is authorized to promulgate regulations necessary for the implementation and 7 administration of this section. These regulations shall include specific course requirements and may also establish 8 alternatives to any area of study or course of study specified herein, provided that the adopted curriculum framework 9 demonstrates that the alternative authorized is equivalent or more advanced." 10 (F) In order to receive a Superior Academic Achievement Diploma, a student must graduate with an over-all B' 11 average. 12 13 B. This section takes effect upon approval of the Governor. 14 15 SECTION 18 16 17 TO AMEND SECTION 56-3-5010, AS AMENDED, OF THE 1976 CODE, RELATING TO THE ISSUANCE OF 18 "PUBLIC EDUCATION: A GREAT INVESTMENT" SPECIAL LICENSE PLATES, SO AS TO PROVIDE 19 THAT A LICENSE PLATE PURCHASER MAY DESIGNATE A SCHOOL DISTRICT OR A SCHOOL TO 20 RECEIVE A PORTION OF THE LICENSE PLATE FEE, TO PROVIDE THAT THE DEPARTMENT OF 21 PUBLIC SAFETY SHALL REPORT TO THE DEPARTMENT OF EDUCATION THE SCHOOL DISTRICT 22 AND THE SCHOOL CHOSEN BY THE LICENSE PLATE PURCHASER TO RECEIVE A PORTION OF 23 THE LICENSE PLATE FEE, AND TO PROVIDE THAT THE DEPARTMENT OF EDUCATION SHALL 24 DISTRIBUTE A PORTION OF THE LICENSE PLATE FEE TO A SCHOOL DISTRICT FOR FURTHER 25 DISTRIBUTION TO A SCHOOL CHOSEN BY THE LICENSE PLATE PURCHASER. 26 27 A. Section 56-3-5010 of the 1976 Code, as added by Act 342 of 1996, is amended to read: 28 29 "Section 56-3-5010. The Department of Public Safety may issue a special commemorative Public Education: A 30 Great Investment' motor vehicle license plate to establish a special fund to be used by the Department of Education for 31 the purpose of providing computers to the school districts public schools. The biennial fee for the commemorative 32 license plate is fifty-four dollars, and of this amount, twenty dollars must be placed in a special Public Education: A 33 Great Investment Fund' established within and administered by the Department of Education to purchase computers for 34 use in the classroom and thirty-four dollars must be distributed to the school districts where the purchasers of the license 35 plates reside district or a school chosen by the license plate purchaser to be used to purchase computers for use in the 36 classroom. The Department of Public Safety shall report to the Department of Education the school district and the 37 school chosen by the license plate purchaser to which the funds must be distributed. The Department of Education shall 38 distribute funds to the district for further distribution to the schools chosen by the license plate purchasers. The 39 commemorative plate must be of the same size and general design of regular motor vehicle license plates and must be 40 imprinted with the words Public Education: A Great Investment'. The plates must be issued or revalidated for a 41 biennial period which expires twenty-four months from the month they are issued." 42


PART II PAGE 550 1 B. This section takes effect July 1, 1997. 2 3 SECTION 19 4 5 TO AMEND THE 1976 CODE BY ADDING SECTION 59-19-45 SO AS TO PROVIDE THAT ALL SCHOOL 6 BOARD MEMBERS OR MEMBERS OF COUNTY BOARDS OF EDUCATION FIRST ELECTED OR 7 APPOINTED AFTER JULY 1, 1997, SHALL COMPLETE SUCCESSFULLY AN ORIENTATION 8 PROGRAM, TO PROVIDE FOR THE MANNER IN WHICH THIS ORIENTATION PROGRAM SHALL BE 9 CONDUCTED, AND TO PROVIDE FOR CERTAIN REIMBURSEMENT TO SCHOOL DISTRICTS OR 10 COUNTY BOARDS OF EDUCATION FOR THE COST OF THIS ORIENTATION PROGRAM. 11 12 A. The 1976 Code is amended by adding: 13 14 "Section 59-19-45. (A) Within one year of taking office, all persons elected or appointed as members of a 15 school district board of trustees after July 1, 1997, shall successfully complete an orientation in the powers, duties, and 16 responsibilities of a board member including, but not limited to, topics on policy development, personnel, 17 superintendent and board relations, instructional programs, district finance, school law, ethics, and community relations. 18 (B) The orientation shall be approved by the State Board of Education and conducted by public or private entities 19 approved by the State Board of Education such as the South Carolina School Boards Association. 20 (C) The provisions of this section also apply to members of county boards of education appointed or elected after 21 July 1, 1997, in the same manner the provisions of this section apply to members of school district boards of trustees. 22 (D) The provisions of this section do not apply to a school board trustee or county board of education member 23 who was serving in such office on July 1, 1997, and who is continuously reelected or reappointed to office thereafter. 24 (E) The State Department of Education shall reimburse a school district or county board of education conducting 25 an orientation for a new board member as required by this section at the rate of eighty dollars per member, provided that 26 the total reimbursements by the department in any one fiscal year must not exceed ten thousand dollars. If the total 27 projected cost of these reimbursements for any year as determined by the department exceeds ten thousand dollars, the 28 eighty dollar reimbursement per new member must be reduced proportionately. If funds are not available for these 29 reimbursements, the board member orientation is not required but may be conducted at the option of a school district or 30 county board of education. The State Board of Education shall establish guidelines and procedures for these 31 reimbursements." 32 33 B. This section takes effect upon approval by the Governor. 34 35 SECTION 20 36 37 TO AMEND SECTION 59-142-10, OF THE 1976 CODE, RELATING TO THE NEED-BASED GRANTS 38 PROGRAM UNDER WHICH STUDENTS MAY RECEIVE A NEED-BASED GRANT FROM THE 39 CHILDREN'S EDUCATION ENDOWMENT FUND, SO AS TO PROVIDE THAT PART-TIME AS WELL AS 40 FULL-TIME STUDENTS ARE ELIGIBLE FOR SUCH GRANTS.


PART II PAGE 551 1 A. Section 59-142-10 of the 1976 Code, as added by Section 20, Part II, of Act 458 of 1996, is amended to read: 2 3 "Section 59-142-10. (A) The State shall fund a need-based grant for a student who enrolls as an undergraduate in 4 a public institution of higher learning in this State, who applies for the need-based grant, and who meets the following 5 qualifications: 6 (1) meets domicile requirements as defined in Section 59-112-20 with the additional requirement of at least 7 twelve consecutive months of residency in the State of South Carolina immediately preceding enrollment; 8 (2) is accepted by and enrolled or registered in a state public institution of higher learning as a first degree 9 full-time or part-time student in a certificate, or diploma of at least one year in length, or undergraduate degree program; 10 (3) is of good moral character and has never been convicted of a felony; and 11 (4) is found to be in financial need according to federal Title IV regulations. 12 (B) To maintain continued state need-based grants, once enrolled a student shall: 13 (1) complete a minimum of twenty-four semester hours an academic year if a full-time student and twelve 14 semester hours an academic year if a part-time student and make satisfactory academic progress toward a degree as 15 determined by the institution; 16 (2) have no criminal record; 17 (3) be eligible for the need-based grants for a maximum of four academic years of two semesters." 18 19 B. This act takes effect upon approval by the Governor. 20 21 SECTION 21 22 23 TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY 24 ADDING CHAPTER 118 SO AS TO ENACT THE SOUTH CAROLINA ACADEMIC ENDOWMENT 25 INCENTIVE ACT OF 1997 WHICH PERMITS CERTAIN STATE-SUPPORTED COLLEGES AND 26 UNIVERSITIES TO RECEIVE STATE MATCHING FUNDS FOR ACADEMIC PURPOSES FROM THE 27 HIGHER EDUCATION MATCHING GIFT FUND HEREIN ESTABLISHED, AND TO PROVIDE FOR THE 28 MANNER IN WHICH STATE MATCHING FUNDS SHALL BE PROVIDED. 29 30 A. Title 59 of the 1976 Code is amended by adding: 31 32 "CHAPTER 118 33 34 South Carolina Academic Endowment Incentive Act of 1997 35 36 Section 59-118-10. This chapter is known and may be cited as the South Carolina Academic Endowment 37 Incentive Act of 1997. 38 39 Section 59-118-20. The purposes of this chapter are to: 40 (1) further the state's efforts to meet its responsibility for the intellectual development of our youth; 41 (2) enhance statewide economic development through initiatives in higher education; to provide incentives to


PART II PAGE 552 1 individuals, corporations, or private funding organizations to create endowments to support the teaching and related 2 activities at South Carolina's public colleges and universities; 3 (3) supplement the financial impacts of newly created endowments that support these colleges and universities. 4 5 Section 59-118-30. For purposes of this chapter: 6 (1) Qualifying college or university' means a state-supported, post-secondary, four-year educational institution 7 offering undergraduate, master, or doctoral degree programs. 8 (2) Endowments' mean permanent gifts or donations to the qualifying college or university or its principal 9 foundation including cash, income producing securities, an income producing business, real property, personal property, 10 fixed assets, mortgage notes, and life income gifts or bequests. Research grants and funds received by the institution in 11 the performance of a contractual obligation are not an endowment for purposes of this chapter. 12 (3) Principal foundation' means a foundation designated by the Board of trustees of the qualifying college or 13 university and registered with the South Carolina Secretary of State. 14 (4) Year' means a state fiscal year beginning on the first day of July and ending the following June thirtieth. 15 16 Section 59-118-40. Each qualifying college or university will provide donors with an incentive in the form of 17 matching state gifts on disbursements from earnings on certain endowments, donations, or gifts if these monies are used 18 for the purposes specified in Section 59-118-50. 19 20 Section 59-118-50. Disbursements from the earnings must be used to provide funds for academic purposes, to 21 include academic scholarships, and are then eligible to receive state matching funds. 22 23 Section 59-118-60. There is created the South Carolina Higher Education Matching Gift Fund which shall be 24 separate and distinct from the state general fund and shall be administered by the Commission on Higher Education with 25 the funds appropriated by the General Assembly in the general appropriations act of 1997-98. The General Assembly in 26 the annual general appropriations act shall appropriate monies into this matching gift fund not to exceed five million 27 dollars annually to be used for the purpose of providing matching state funds to qualifying colleges and universities for 28 purposes stipulated by this chapter. The disbursement match cannot exceed the amount provided by the South Carolina 29 Higher Education Matching Gift Fund. The State Treasurer shall manage and invest the monies in the Higher Education 30 Matching Gift Fund in the same manner and under the same terms and conditions as other state funds under his control 31 are managed and invested, and disbursements to particular colleges or universities shall be made on warrant and under 32 the direction of the Commission on Higher Education pursuant to the provisions of this chapter. 33 34 Section 59-118-70. The State of South Carolina, acting through the Commission on Higher Education, shall 35 provide funds to match funds from the qualifying college, university, or principal foundation, to the extent of available 36 funds, from the South Carolina Higher Education Matching Gift Fund established in Section 59-118-60. 37 38 Section 59-118-80. The state matching gifts authorized in Section 59-118-70 are subject to the following 39 conditions: 40 (1) qualifying disbursements to which the state matching gift is applied must come from the earnings of the 41 endowment and not from principal or corpus;


PART II PAGE 553 1 (2) the state matching funds must go directly into the college or university's operating account to be spent only 2 for the purposes authorized; 3 (3) the college or university must make application to receive state matching funds on forms and under 4 procedures prescribed by the Commission on Higher Education; 5 6 Section 59-118-90. The Commission on Higher Education shall specify by regulation the procedures for 7 submission and documentation of requests for matching state funds. 8 9 Section 59-118-100. The Commission on Higher Education shall ensure that each qualifying college or university 10 receives its proportionate share of the State Higher Education Matching Gift Fund based on the ratio of disbursements. 11 Any monies in the State Higher Education Matching Gift Fund not distributed in any year shall be carried forward for 12 the same purposes in future years and all earnings on monies in the State Higher Education Matching Gift Fund must be 13 retained in the fund and used for its stated purposes." 14 15 B. This act takes effect July 1, 1997. 16 17 SECTION 22 18 19 TO AMEND SECTION 48-48-140, AS AMENDED, OF THE 1976 CODE, RELATING TO THE LOW-LEVEL 20 RADIOACTIVE WASTE DISPOSAL TAX, SO AS TO IMPOSE A CONTINGENT LICENSE TAX ON 21 OPERATORS OF LICENSED LOW-LEVEL RADIOACTIVE WASTE DISPOSAL SITES, TO PROVIDE 22 THE MEASURE OF THE TAX AS AN AMOUNT EQUAL TO POSSIBLE SHORTFALLS IN THE 23 SCHOLARSHIPS PORTION OF THE CHILDREN'S EDUCATION ENDOWMENT FUND, THE TIME OF 24 PAYMENT, METHOD OF COLLECTION, AND DISPOSITION OF THE REVENUE. 25 26 A. Section 48-48-140 of the 1976 Code, as last amended by Act 458 of 1996, is further amended by adding an 27 appropriately lettered subsection at the end to read: 28 29 "( ) In addition to the disposal tax imposed pursuant to this section, there is imposed a contingent annual license 30 tax on any company which operates a licensed disposal site in this State for the disposal of low-level radioactive waste. 31 The tax is an amount determined as follows: 32 (1) for the fiscal year beginning July 1, 1996, and ending June 30, 1997, the shortfall, if any, in amounts 33 credited for the fiscal year to the Higher Education Scholarship Grants portion of the Children's Education Endowment 34 Fund and twenty-two million dollars; 35 (2) for the fiscal year beginning July 1, 1997, and ending June 30, 1998, an amount calculated as provided in 36 item (1), except that the applicable fiscal year is 1997-98 and the applicable amount is twenty-three million dollars; 37 (3) for fiscal years beginning after June 30, 1998, an amount as determined in item (1), except that the 38 applicable fiscal year is the then current fiscal year and the applicable amount is twenty-four million dollars. 39 The tax imposed by this subsection is due and payable at the same time provided for the payment of the disposal 40 fee provided pursuant to subsection (B), calculated proportionately over the fiscal year . Underpayments or 41 overpayments in a year must be reflected by an adjusted payment for the first quarter of the succeeding fiscal year.


PART II PAGE 554 1 The tax imposed by this subsection is enforceable as provided in Chapter 54 of Title 12. 2 Notwithstanding the provisions of this subsection, the entire contingent license tax due for Fiscal Year 1996-97 and 3 the estimated contingent license tax due for the first quarter of Fiscal Year 1997-98 are due and payable before January 4 31, 1998. 5 Notwithstanding the provisions of Section 59-143-10, the amount of earned revenue for the Higher Education 6 Scholarship Grants portion for Fiscal Year 1996-97 must be increased by the contingent annual license tax due and 7 payable by January 31, 1998. 8 Revenue of the contingent license tax imposed by this section must be credited to the Higher Education 9 Scholarship Grants portion of the Children's Education Endowment Fund." 10 11 B. This section takes effect upon approval by the Governor and first applies for the contingent license tax due for 12 Fiscal Year 1996-97. 13 14 SECTION 23 15 16 DELETED (RULED NON-GERMANE) 17 18 SECTION 24 19 20 TO AMEND THE 1976 CODE BY ADDING SECTION 13-1-1770 SO AS TO ESTABLISH WITHIN THE 21 ADVISORY COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT OF THE DEPARTMENT OF 22 COMMERCE A DOWNTOWN REDEVELOPMENT GRANT PROGRAM FOR THE PURPOSE OF 23 REVITALIZING AND ENHANCING THE VIABILITY OF DOWNTOWN AREAS THROUGH 24 PARTNERSHIPS OF MUNICIPAL GOVERNMENT, COUNTY GOVERNMENT, AND PRIVATE 25 INVESTORS AND TO PROVIDE MINIMUM CRITERIA FOR AWARDING THIS GRANT. 26 27 A. Article 11, Chapter 1, Title 13 of the 1976 Code is amended by adding: 28 29 "Section 13-1-1770. The Advisory Coordinating Council for Economic Development shall establish the 30 Downtown Redevelopment Program' for the purpose of making grants for revitalizing and enhancing the viability of 31 downtown areas through partnerships of municipal government, county government, and private investors. 32 The council shall establish the program guidelines, regulations, and criteria by which grants must be evaluated and 33 awarded; including, but not limited to: 34 (1) a nonstate match requirement of at least one hundred fifty percent of state grant funds; and 35 (2) completing an economic impact before an award is made." 36 37 B. This section takes effect July 1, 1997. 38 39 SECTION 25 40 41 DELETED (RULED NON-GERMANE) 42


PART II PAGE 555 1 SECTION 26 2 3 TO AMEND THE 1976 CODE BY ADDING SECTION 1-11-185 SO AS TO PROVIDE THAT THE BUDGET 4 AND CONTROL BOARD MAY ADOPT RULES AND PROMULGATE CERTAIN REGULATIONS THAT 5 GOVERN THE OPERATION OF THE DEPARTMENT OF CORRECTIONS; AND TO AMEND SECTION 6 24-1-140, RELATING TO POWERS OF THE DIRECTOR OF THE DEPARTMENT OF CORRECTIONS, SO 7 AS TO PROVIDE THAT THE DIRECTOR OF THE DEPARTMENT OF CORRECTIONS SHALL 8 PERFORM CERTAIN DUTIES TO CARRY OUT THE INTENT OF CHAPTER 1, TITLE 24 OF THE 1976 9 CODE, SHALL CARRY OUT CERTAIN DIRECTIVES OF THE BUDGET AND CONTROL BOARD, AND IS 10 AUTHORIZED TO MAKE AND EXECUTE CERTAIN CONTRACTS. 11 12 A. Article 1, Chapter 11, Title 1 of the 1976 Code is amended by adding: 13 14 "Section 1-11-185. (A) The Budget and Control Board is authorized to adopt rules and promulgate regulations 15 governing the transaction of the business of the penal system of the State by the Department of Corrections and its 16 director and the administration of the affairs of the penal system in the different penal institutions under its authority and 17 supervision and shall make the institutions as self-supporting as possible. 18 (B) The Budget and Control Board shall adopt rules and promulgate regulations governing the negotiation and 19 execution of any contract for the land acquisition, design, construction, operation, maintenance, use, lease, or 20 management of a state correctional institution or for any services pertaining to the custody, care, and control of inmates 21 or other functions related to the discharge of these responsibilities. 22 (C) All rules adopted and regulations promulgated must comply with the provisions of the Administrative 23 Procedures Act. The courts shall take judicial notice of these rules and regulations. 24 (D) The director of the Department of Corrections shall cause to be designed and constructed institutions 25 commensurate with security levels and quality standards, including operational costs and staffing, which exist at other 26 recently constructed South Carolina correctional facilities." 27 28 B. Section 24-1-140 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read: 29 30 "Section 24-1-140. (A) The director shall have power to prescribe reasonable rules and regulations governing 31 the humane treatment, training, and discipline of prisoners, and to make provision for the separation and classification 32 of prisoners according to sex, color, age, health, corrigibility, and character of offense upon which the conviction of the 33 prisoner was secured. 34 (B) The director shall perform other duties and functions that are necessary or desirable to carry out the intent of 35 this chapter and that he may be directed to perform by the Budget and Control Board. The director, or his designee, is 36 authorized to make and execute contracts and all other instruments necessary or convenient for the acquisition of 37 professional and personal employment services and for the leasing of real property. 38 Subject to legislative appropriations, the director is authorized to make and execute any contract for the land 39 acquisition, design, construction, operation, maintenance, use, lease, or management of a state correctional institution or 40 for any services pertaining to the custody, care, and control of inmates or other functions that are related to the discharge 41 of these responsibilities and to designate any person or organization with whom the director contracts as a law


PART II PAGE 556 1 enforcement unit." 2 3 C. This section takes effect July 1, 1997. 4 5 SECTION 27 6 7 TO AMEND SECTION 14-5-610, AS AMENDED, OF THE 1976 CODE, RELATING TO CIRCUIT COURTS 8 AND CIRCUIT COURT JUDGES, SO AS TO ADD AN ADDITIONAL JUDGE FOR THE FIRST, FIFTH, 9 AND THIRTEENTH CIRCUITS; TO AMEND SECTION 20-7-1410, AS AMENDED, RELATING TO THE 10 FAMILY COURTS AND FAMILY COURT JUDGES, SO AS TO ADD AN ADDITIONAL JUDGE FOR THE 11 FIRST, NINTH, AND THIRTEENTH CIRCUITS, TO PROVIDE FOR THE DATE THESE JUDGES TAKE 12 OFFICE, AND TO FURTHER PROVIDE FOR THE RESIDENCY REQUIREMENTS FOR CERTAIN OF 13 THESE FAMILY COURT JUDGES. 14 15 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 16 to read: 17 18 "Section 14-5-610. The State is divided into sixteen judicial circuits as follows: 19 (1) The first circuit is composed of the counties of Calhoun, Dorchester, and Orangeburg. 20 (2) The second circuit is composed of the counties of Aiken, Bamberg, and Barnwell. 21 (3) The third circuit is composed of the counties of Clarendon, Lee, Sumter, and Williamsburg. 22 (4) The fourth circuit is composed of the counties of Chesterfield, Darlington, Marlboro, and Dillon. 23 (5) The fifth circuit is composed of the counties of Kershaw and Richland. 24 (6) The sixth circuit is composed of the counties of Chester, Lancaster, and Fairfield. 25 (7) The seventh circuit is composed of the counties of Cherokee and Spartanburg. 26 (8) The eighth circuit is composed of the counties of Abbeville, Greenwood, Laurens, and Newberry. 27 (9) The ninth circuit is composed of the counties of Charleston and Berkeley. 28 (10) The tenth circuit is composed of the counties of Anderson and Oconee. 29 (11) The eleventh circuit is composed of the counties of Lexington, McCormick, Saluda, and Edgefield. 30 (12) The twelfth circuit is composed of the counties of Florence and Marion. 31 (13) The thirteenth circuit is composed of the counties of Greenville and Pickens. 32 (14) The fourteenth circuit is composed of the counties of Allendale, Hampton, Colleton, Jasper, and Beaufort. 33 (15) The fifteenth circuit is composed of the counties of Georgetown and Horry. 34 (16) The sixteenth circuit is composed of the counties of York and Union. 35 One judge must be elected from the first, second, sixth, twelfth, and sixteenth circuits. Two judges must be 36 elected from the first, third, fourth, seventh, eighth, tenth, eleventh, fourteenth, and fifteenth circuits. Three judges must 37 be elected from the fifth, ninth, and thirteenth circuits circuit. Four judges must be elected from the fifth and thirteenth 38 circuits. 39 In addition to the above judges authorized by this section, there must be thirteen additional circuit judges elected by 40 the General Assembly from the State at large for terms of office of six years. These additional judges must be elected 41 without regard to county or circuit of residence. Each office of the at-large judges is a separate office and is assigned


PART II PAGE 557 1 numerical designations of Seat No. 1 through Seat No. 13 respectively." 2 3 B. Section 20-7-1410 of the 1976 Code, as last amended by Part II, Section 85E Act 145 of 1995, is further amended 4 to read: 5 6 "Section 20-7-1410. The General Assembly shall elect a number of family court judges from each judicial circuit 7 as follows: 8 9 First Circuit Two Three Judges 10 Second Circuit Two Judges 11 Third Circuit Three Judges 12 Fourth Circuit Three Judges 13 Fifth Circuit Four Judges 14 Sixth Circuit Two Judges 15 Seventh Circuit Three Judges 16 Eighth Circuit Three Judges 17 Ninth Circuit Five Six Judges 18 Tenth Circuit Three Judges 19 Eleventh Circuit Three Judges 20 Twelfth Circuit Three Judges 21 Thirteenth Circuit Five Six Judges 22 Fourteenth Circuit Three Judges 23 Fifteenth Circuit Three Judges 24 Sixteenth Circuit Two Judges 25 26 In the following judicial circuits at least one family court judge must be a resident of each county in the circuit: 27 fifth, seventh, ninth, tenth, twelfth, thirteenth, fifteenth, and sixteenth. In those judicial circuits made up of three or 28 more counties at least one family court judge must be a resident of one of the counties which does not have the largest 29 population in the circuit. In the ninth circuit, both counties in the circuit must have at least two resident family court 30 judges. 31 No county in the sixth circuit shall have more than one resident family court judge." 32 33 C. Those additional circuit court and family court judges authorized by the provisions of subsections (A) and (B) 34 of this section shall take office May 17, 1998, and the Judicial Merit Selection Commission on the effective date of this 35 section shall begin the process of nominating candidates for these offices and the General Assembly shall then elect 36 such judges from the nominees of the commission so that these judges may take office on May 17, 1998." 37 38 SECTION 28 39 40 TO AMEND SECTION 9-8-120, AS AMENDED, OF THE 1976 CODE, RELATING TO THE RETURN OF 41 BENEFICIARIES TO STATE SERVICE AND THE PRACTICE OF LAW FOR MEMBERS OF THE


PART II PAGE 558 1 RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO FURTHER PROVIDE FOR THE 2 MANNER IN WHICH A RETIRED JUDGE OR JUSTICE MUST MAKE AN ELECTION TO PRACTICE 3 LAW OR BE ELIGIBLE FOR APPOINTMENT TO SERVE IN THE COURTS OF THIS STATE AND TO 4 PROVIDE THAT AN ELECTION TO PRACTICE LAW IS IRREVOCABLE. 5 6 A. Section 9-8-120(4) of the 1976 Code, as last amended by Section 5, Act 610 of 1990, is further amended to read: 7 8 "(4) A justice or judge drawing retirement compensation who engages in the practice of law may not serve as a 9 justice or judge in any court in this State. Within thirty days of his retirement under this chapter, a retired judge or 10 justice shall make an irrevocable election as to whether he wishes to engage in the practice of law or be eligible for 11 appointment by the Chief Justice as a judge or justice in the courts of this State. If his election is to engage in the 12 practice of law, it is irrevocable and he may not thereafter be appointed by the Chief Justice to serve as a justice or judge 13 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 14 this State and not to practice law, he may at any time thereafter change such election and decide to engage in the 15 practice of law, at which point his decision becomes irrevocable." 16 17 B. This section takes effect July 1, 1997. 18 19 SECTION 29 20 21 TO AMEND THE 1976 CODE BY ADDING SECTION 38-7-35 SO AS TO PROVIDE THAT ONE HUNDRED 22 SEVENTY-FIVE THOUSAND DOLLARS OF THE REVENUE COLLECTED ANNUALLY PURSUANT TO 23 SECTION 38-7-30, REGARDING THE TAX ON FIRE INSURERS TO COVER EXPENSES OF 24 INSPECTIONS AND INVESTIGATIONS, MUST BE TRANSFERRED TO THE DEPARTMENT OF LABOR, 25 LICENSING AND REGULATION FOR CERTAIN PURPOSES AND REQUIRE THE DEPARTMENT TO 26 MAKE AN ANNUAL REPORT. 27 28 The 1976 Code is amended by adding: 29 30 "Section 38-7-35. (A) One hundred seventy-five thousand dollars of the revenue collected annually pursuant to 31 Section 38-7-30 must be transferred to the Department of Labor, Licensing and Regulation for the purpose of 32 implementing the training, certification, and continuing education program for building codes enforcement officers as 33 provided by law. 34 (B) The Department of Labor, Licensing and Regulation shall report annually to the Chairman of the Senate 35 Finance Committee and the Chairman of the House Ways and Means Committee detailing actual program expenditures 36 including, but not limited to, the number of instructors employed, the number of training sessions conducted, and the 37 number of certifications issued. This report must be submitted to the respective chairmen no later than January fifteenth 38 of each year."


PART II PAGE 559 1 SECTION 30 2 3 TO AMEND SECTION 2-51-10 OF THE 1976 CODE, RELATING TO THE JOINT LEGISLATIVE STUDY 4 COMMITTEE ON THE AGING, SO AS TO REQUIRE COMMITTEE STAFF SUPPORT TO BE PROVIDED 5 BY THE STATE REORGANIZATION COMMISSION AND TO DELETE THE AUTHORIZATION FOR 6 MILEAGE, SUBSISTENCE, AND PER DIEM FOR MEMBERS AND THE REFERENCE TO THE 7 COMMITTEE'S ANNUAL APPROPRIATION. 8 9 A. Section 2-51-10 of the 1976 Code is amended to read: 10 11 "Section 2-51-10. There is created a permanent committee to conduct continuing studies of public and private 12 services, programs, and facilities for the Aging in South Carolina and report its findings and recommendations annually 13 to the General Assembly. Three members shall must be appointed from the Senate by the President thereof, three 14 members shall must be appointed from the House of Representatives by the Speaker, and three members shall must be 15 appointed by the Governor. Terms of legislative members shall be are coterminous with the term of the appointing 16 Governor. Members of the committee shall receive mileage, per diem, and subsistence as provided by law for members 17 of boards, committees and commissions. Expenses of the committee shall be provided by an annual appropriation in the 18 General Appropriation Appropriations Act. The Legislative Council shall provide such legal services as the committee 19 may require in the performance of its duties. From funds appropriated to the State Reorganization Commission in the 20 General Appropriations Act for Fiscal Year 1997-98 and subsequent years, the commission shall provide all other staff 21 support for the committee." 22 23 B. This section takes effect July 1, 1997. 24 25 SECTION 31 26 27 TO AMEND THE 1976 CODE BY ADDING SECTION 59-130-35 SO AS TO AUTHORIZE THE BOARD OF 28 TRUSTEES OF THE COLLEGE OF CHARLESTON, WITH THE CONSENT OF THE BUDGET AND 29 CONTROL BOARD, TO SELL REMLEY'S POINT WHICH IT OWNS IN CHARLESTON COUNTY 30 DURING FISCAL YEAR 1997-98 OR THEREAFTER, AND TO PROVIDE THAT CERTAIN FUNDS 31 APPROPRIATED TO THE COLLEGE IN SECTION 18E, PART I OF THIS ACT, AFTER THIS PROPERTY 32 IS SOLD SHALL BE USED FOR THE PURPOSE OF ACQUIRING THROUGH LEASE OR PURCHASE 33 ADDITIONAL REAL AND PERSONAL PROPERTY IN CHARLESTON COUNTY WHICH SHALL BE 34 USED FOR ATHLETIC, INTRAMURAL, OR SPORTS PROGRAMS OF THE COLLEGE, AND TO 35 PROVIDE THAT THE PROCEEDS DERIVED FROM THIS SALE SHALL BE RETAINED BY THE 36 COLLEGE AND USED TO REIMBURSE THE APPROPRIATION WHICH WAS USED TO FUND THIS 37 PURCHASE. 38 39 A. The 1976 Code is amended by adding: 40 41 "Section 59-130-35. (A) Pursuant to item (4) of Section 59-130-30, the board of trustees of the College of


PART II PAGE 560 1 Charleston, with the consent of the Budget and Control Board, is authorized to sell Remley's Point which it owns in 2 Charleston County during fiscal year 1997-98 or thereafter for such price and under such terms and conditions as the 3 board considers appropriate. The funds appropriated to the college for other operating expenses on line 13, Section 18E, 4 Part I of this act, after this property is sold shall be used by the college for the purpose of acquiring through lease or 5 purchase additional real and personal property in Charleston County which shall be used for athletic, intramural, or 6 sports programs of the college. The proceeds derived from this sale shall be retained by the college and used to 7 reimburse the appropriation which was used as provided above to fund this purchase. 8 (B) Remley's Point for purposes of this section is described as follows: 9 10 All that certain piece, parcel or tract of land, situate, lying and being in Christ Church Parish in the County of 11 Charleston, State aforesaid, containing 17.32 acres of highland and 15 acres of marshlands, be the same more or less, 12 more particularly shown and delineated on a plat thereof entitled Plat of 17.32 acres in Christ Church Parish, 13 Charleston County, State aforesaid conveyed by the Estates of W. A. Leland and W. R. Bonsal to the College of 14 Charleston', surveyed August 6, 1975, by W. L. Gaillard, Surveyor.' 15 16 The property is further identified on Charleston County Tax Map 514-05-00 as parcel number 6." 17 18 SECTION 32 19 20 TO AMEND SECTION 56-3-2350, AS AMENDED, OF THE 1976 CODE, RELATING TO TRANSPORTER 21 MOTOR VEHICLE LICENSE PLATES, SO AS TO LIMIT THEIR USE TO MOVEMENT OF MOTOR 22 VEHICLES FROM A MANUFACTURER TO A DEALER OR DISTRIBUTOR, IN CONNECTION WITH 23 THE CONSTRUCTION OF VEHICLE CABS OR BODIES, AND MOVING FORECLOSED OR 24 REPOSSESSED VEHICLES AND TO PROHIBIT THE USE OF THESE PLATES ON VEHICLES LOANED, 25 RENTED, OR LEASED TO EMPLOYEES OF THE TRANSPORTER OR ANY OTHER INDIVIDUALS. 26 27 Section 56-3-2350 of the 1976 Code, as amended by Act 497 of 1994, is further amended to read: 28 29 "Section 56-3-2350. A person engaged in a the business of limited operation of motor vehicles to facilitate the 30 manufacture or the movement of vehicles from a manufacturer to a dealer or distributor, or for the move of vehicles to 31 further the construction of cabs or bodies, or in connection with the foreclosure or repossession of these motor vehicles 32 may apply to the department for special registration to be issued to and used by the person upon the following 33 conditions: 34 (1) The application must be in a form prescribed by the department to include the applicable liability insurance as 35 prescribed by statute and filed with the department each year. The application must include the name and residence 36 address of the applicant as follows: 37 (a) if an individual, the name under which he intends to conduct business; 38 (b) if a partnership, the name and residence address of each member of the partnership and the name under 39 which the business is to be conducted; 40 (c) if a corporation, the name and company addresses of the corporation and the name and residence address 41 of each of its officers.


PART II PAGE 561 1 (2) The application must be certified by the applicant and by an agent of the department to verify the facts set 2 forth in the application. 3 (3) The annual fee for registration is fifty dollars, plus an annual fee of ten dollars for each license plate. 4 (4) License plates authorized by this section must not be used on vehicles that are loaned, rented, or leased by the 5 licensed transporter to employees or any other individuals." 6 7 SECTION 33 8 9 TO AMEND SECTION 59-20-20, AS AMENDED, OF THE 1976 CODE, RELATING TO THE "INDEX OF 10 TAXPAYING ABILITY" FOR PURPOSES OF THE EDUCATION FINANCE ACT, SO AS TO PROVIDE 11 THAT FOR PURPOSES OF DISBURSING EFA FUNDING PROVIDED IN SECTION 19, PART I, OF THIS 12 ACT AND FOR PURPOSES OF THE INDEX OF TAXPAYING ABILITY, THE VALUE OF A FEE IN LIEU 13 OF TAXES SHALL BE COMPUTED IN A CERTAIN MANNER. 14 15 Section 59-20-20(3) of the 1976 Code, is further amended by adding a new paragraph at the end to read: 16 17 "For purposes of disbursing EFA funding provided on line 21, Section 19, Part I, of this act and for purposes of 18 the index of taxpaying ability, the value of a fee in lieu of taxes shall be computed by the Department of Revenue by 19 basing the computation on the net fee received and retained by the school district. The value thus computed shall not be 20 inflated by any portion of the fee shared with or used by any other local taxing authority." 21 22 SECTION 34 23 24 TO AMEND SECTION 51-23-30 OF THE 1976 CODE, RELATING TO GRANT FUNDS FOR PARKS AND 25 RECREATION FACILITIES, SO AS TO ALLOW UNSPENT GRANT FUNDS TO BE CARRIED FORWARD 26 FOR SEVEN YEARS INSTEAD OF THREE YEARS. 27 28 The department shall devise and administer a noncompetitive program of grants to eligible entities within each county 29 area for planning and development for of new parks and recreation facilities or renovations of existing facilities. Grant 30 funds may not be used to supplant existing funding for parks and recreation purposes nor may they be used to retire 31 indebtedness incurred prior to before July 1, 1988. Grant awards must be made by the department according to criteria 32 and administrative guidelines it shall develop develops and furnish furnishes to potential grant applicants. All grants 33 must be in the form of reimbursements and no a grant may not be awarded unless the grantee matches the grant in an 34 amount equal to at least twenty percent of the grant. All grant applications must be submitted in writing and signed by a 35 majority of the members of the legislative delegation representing the eligible entity applying for the grant. Unexpended 36 grant funds in any account may be carried forward for not more than three seven succeeding fiscal years, after which 37 any. Then unexpended funds must be reallocated on a statewide basis in the next fiscal year as part of the distribution to 38 the Fund for that year."


PART II PAGE 562 1 SECTION 35 2 3 TO AMEND CHAPTER 3, TITLE 56 OF THE 1976 CODE BY ADDING ARTICLE 52 SO AS TO PROVIDE 4 FOR CHARTER LIMOUSINE LICENSE PLATES, TO ESTABLISH A TWENTY-FIVE DOLLAR FEE FOR 5 SUCH PLATES, AND TO PROVIDE FUNDING FOR PROCESSING DOCUMENTS RELATED TO 6 ACQUIRING THESE PLATES. 7 8 A. Chapter 3, Title 56 of the 1976 Code is amended by adding: 9 10 "Article 52 11 12 Charter Limousine License Plates 13 14 Section 56-3-5300. (A) In addition to complying with any other registration and license fee requirement 15 contained in this chapter, a charter limousine' regulated by the South Carolina Public Service Commission must 16 acquire a special license plate from the Department of Public Safety upon submission of proof that the charter limousine 17 is certified as a Class C Charter Limousine' by the commission. 18 (B) The biennial fee for this special license plate is twenty-five dollars. 19 (C) Of the funds appropriated to the Public Service Commission in the Annual Appropriations Act for 1997-1998 20 and subsequent years for Operations/Administration, Other Operating Expenses, sufficient funds must be used to 21 process documents providing proof that the charter limousine is certified as a Class C Charter Limousine' as required 22 by subsection (A)." 23 24 B. This section takes effect July 1, 1997. 25 26 SECTION 36 27 28 TO AMEND SECTION 8-21-310, AS AMENDED, OF THE 1976 CODE, RELATING TO FEES AND COSTS 29 COLLECTED BY COUNTY OFFICIALS, SO AS TO ADD A SURCHARGE OF FIFTEEN DOLLARS TO 30 THE FEE FOR FILING A COMPLAINT OR PETITION IN CIRCUIT OR FAMILY COURT TO BE 31 ALLOCATED TOWARD CIVIL REPRESENTATION OF INDIGENTS. 32 33 A. Section 8-21-310(11)(a) of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read: 34 35 "(a) (1) For filing first complaint or petition, including application for a remedial and prerogative writ and bond 36 on attachment or other bond, in a civil action or proceeding, in a court of record, fifty-five dollars. There is no further 37 fee for filing an amended or supplemental complaint or petition nor for filing any other paper in the same action or 38 proceeding. An original application for post conviction relief may be filed without fee upon permission of the court to 39 which the application is addressed. There is no further fee for entering and filing a verdict, judgment, final decree, or 40 order of dismissal, and enrolling a judgment thereon on it, for signing, sealing, and issuance of execution, or for entering 41 satisfaction or partial satisfaction on a judgment.


PART II PAGE 563 1 (2) A fifteen dollar surcharge is added to each fee for filing a complaint or petition in circuit or family court. 2 Funds received from the surcharge must be forwarded to the State Treasurer and deposited in a special account titled the 3 Defense of Indigents Per Capita Fund. The Commission on Indigent Defense shall distribute these funds on December 4 thirty-first and on June thirtieth of each year, to South Carolina organizations that are grantees of the Legal Services 5 Corporation, proportionate to each recipient's share of the state's poverty population." 6 7 B. This section takes effect July 1, 1997. 8 9 SECTION 37 10 11 TO AMEND THE 1976 CODE BY ADDING SECTION 56-5-2995 SO AS TO REQUIRE AN ADDITIONAL 12 FINE OF TWELVE DOLLARS ON EVERY VIOLATION FOR DRIVING UNDER THE INFLUENCE OF 13 INTOXICATING LIQUORS OR NARCOTICS OR OTHER DRUGS TO BE REMITTED TO AND 14 DISTRIBUTED BY THE STATE TREASURER TO THE DEPARTMENT OF DISABILITIES AND SPECIAL 15 NEEDS FOR ITS HEAD AND SPINAL CORD INJURIES FAMILY SUPPORT PROGRAM AND THE 16 DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL FOR EMERGENCY MEDICAL 17 SERVICES. 18 19 Section 56-5-2995. In addition to fines imposed under this article, an additional fine of twelve dollars must be 20 remitted to the State Treasurer who must distribute ten dollars of these funds to the Department of Disabilities and 21 Special Needs for the Head and Spinal Cord Injuries Family Support Program and two dollars to the Department of 22 Health and Environmental Control Emergency Medical Services-Aid to Counties, restricted. 23 24 SECTION 38 25 26 TO AMEND CHAPTER 3, TITLE 56 OF THE 1976 CODE RELATING TO MOTOR VEHICLE 27 REGISTRATION AND LICENSING BY ADDING ARTICLE 54 SO AS TO PROVIDE FOR THE ISSUANCE 28 OF "SOUTH CAROLINA STATE PARKS: EXPLORE THE WONDERLANDS" LICENSE PLATES, AND TO 29 PROVIDE FOR THE DISBURSEMENT OF THE FEES COLLECTED. 30 31 A. Chapter 3, Title 56 of the 1976 Code is amended by adding: 32 33 "Article 54 34 35 South Carolina State Parks: Explore the Wonderlands License Plates 36 37 Section 56-3-5500. (A) The department may issue a special commemorative South Carolina State Parks: 38 Explore the Wonderlands' motor vehicle license plate to promote and contribute to the maintenance and operation of 39 state parks. The department shall develop forms to be completed by the vehicle registrant upon purchase of the license 40 plate which designates to which state park the portion of the license fee, pursuant to subsection (B), must be distributed. 41 (B) The biennial fee for the commemorative license plate is seventy-two dollars. Twenty-four dollars of this


PART II PAGE 564 1 amount must be deposited in the state general fund. Forty-eight dollars of this amount must be remitted to the State 2 Treasurer for distribution to the state parks pursuant to the designations made by the vehicle registrants upon purchase 3 of the license plates to promote and maintain the operation of the state parks. 4 (C) The commemorative plate must be of the same size and general design of a regular motor vehicle license plate 5 and must be imprinted with the words South Carolina State Parks: Explore the Wonderlands'. The plates must be 6 issued or revalidated for a biennial period which expires twenty-four months from the month they are issued." 7 8 B. Of the funds designated to the State Parks, a portion must be used to reimburse the Department of Transportation 9 for its set-up costs, if any, resulting from this special issue. 10 11 C. This section takes effect July 1, 1997. 12 13 SECTION 39 14 15 TO AMEND ACT 152 OF 1995 RELATING TO THE SOUTH CAROLINA COMMISSION ON SPORTING 16 DOGS AND FIELD TRIALS SO AS TO REQUIRE THE COMMISSION TO DEVELOP FEES FOR 17 FACILITY USE AND DOG ENTRIES IN ORDER TO ENABLE THE H. COOPER BLACK, JR. MEMORIAL 18 FIELD TRIAL RECREATIONAL AREA TO BE SELF-SUSTAINING AND TO PROVIDE FOR AND TO 19 REQUIRE A REPORT ON THE COLLECTION AND USE OF THESE FEES. 20 21 Section 1. (C) Act 152 of 1995 is amended by adding at the end: 22 23 The Sstate plan shall include a fee schedule including, but not limited to a facility use fee, dog entry fees, and any 24 other fees the commission deems necessary to enable the H. Cooper Black, Jr. Memorial Field Trial and Recreational 25 area to be self-sustaining beginning July 1, 1999. 26 These fees are in addition to the utility fee charged by the S. C. Forestry Commission. Revenue received will be 27 deposited in the H. Cooper Black, Jr. Memorial Field Trial and Recreational Area line item within the S. C. Forestry's 28 Commission's budget and will be used cooperatively with the Department of Natural Resources and Parks, Recreation 29 and Tourism for personal service funds, infrastructure, maintenance, enhancement and operation of the field trial area 30 program in conjunction with the commission. A report of fees collected and disbursements made during FY 97-98 must 31 be made to the House Ways and Means Committee and the Senate Finance Committee by August 31, 1998. 32 33 SECTION 40 34 35 TO DIRECT THE DEFERRED COMPENSATION COMMISSION TO STUDY AND IMPLEMENT AT 36 LEAST TWENTY ADDITIONAL OPTIONAL MUTUAL FUND SELECTIONS FOR THE DEFERRED 37 COMPENSATION PLAN AND TO PROVIDE FUNDING. 38 39 A. The Deferred Compensation Commission shall study and implement at least twenty additional optional mutual 40 selections ranging from low risk to very aggressive funds for the deferred compensation plan.


PART II PAGE 565 1 B. Of the funds appropriated to the Budget and Control Board-Division of Executive Director for "Other Operating 2 Expenses" under the "Office of Internal Operation/Internal Operations" $10,000, may be used to fund the study and 3 implementation required by subsection A. 4 5 SECTION 41 6 7 TO AMEND SECTION 56-3-210, AS AMENDED, OF THE 1976 CODE, RELATING TO THE GRACE 8 PERIOD FOR PROCURING A MOTOR VEHICLE REGISTRATION AND LICENSE, SO AS TO REQUIRE 9 THAT A TEMPORARY LICENSE PLATE CONTAINING CERTAIN INFORMATION MUST BE 10 DISPLAYED ON THE MOTOR VEHICLE BEFORE THE REGISTRATION AND LICENSE PLATE ARE 11 RECEIVED, TO PROVIDE FINES FOR THE FAILURE TO DISPLAY OR THE DISPLAY OF 12 INACCURATE OR FALSE INFORMATION, AND TO PROVIDE FUNDING FOR THE TEMPORARY 13 LICENSE PLATES. 14 15 A. Section 56-3-210 of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read: 16 17 "Section 56-3-210. (A) Persons newly acquiring vehicles and owners of foreign vehicles being moved into this 18 State and required to be registered under this chapter may have not more than forty-five days in which to register and 19 license them. 20 (B) Before obtaining a motor vehicle registration and license plate pursuant to subsection (A), a temporary license 21 plate issued by the department must be displayed in the space designated for the placement of a permanent license plate. 22 A number determined by the department, the motor vehicle's purchase date, and the date the grace period contained in 23 subsection (A) expires must be displayed on a temporary license plate. Funds provided in the annual appropriations act, 24 Department of Public Safety, Motor Vehicles Inspection Program for other Operating Expenses must be used to 25 purchase these temporary license plates. 26 (C) The department shall issue temporary paper license plates at a cost of one dollar to licensed motor vehicle 27 dealers who must issue these license plates to purchasers of motor vehicles for two dollars. 28 (D) A person who purchases a motor vehicle from a person other than a licensed motor vehicle dealer, within three 29 business days of the purchase, must obtain a temporary license plate from the department. The cost of this license plate 30 is two dollars. 31 (E) A person issuing a temporary license plate must obtain the motor vehicle owner's driver's license number, the 32 vehicle's identification number, and proof of insurance. This information must be filed with the department. 33 (F) A person subject to the provisions contained in subsection (B) is responsible for the accuracy of the 34 information displayed. Failure to display or properly display the information required in this section shall result in a 35 fine of not more than twenty-five dollars. Display of false information shall result in a fine of not more than five 36 hundred dollars." 37 38 B. This section takes effect July 1, 1997.


PART II PAGE 566 1 SECTION 42 2 3 TO AMEND THE 1976 CODE BY ADDING SECTION 1-11-470, SO AS TO PROHIBIT A STATE AGENCY 4 FROM EXPENDING MONIES APPROPRIATED BY THE GENERAL ASSEMBLY TO PURCHASE SPACE 5 INCLUDING, BUT NOT LIMITED TO, NOTICES OR ADVERTISEMENTS, IN A PRINT MEDIUM OR 6 TIME FROM A RADIO OR TELEVISION MEDIUM WITHOUT UNANIMOUS PRIOR WRITTEN 7 APPROVAL OF THE STATE BUDGET AND CONTROL BOARD; TO PROHIBIT A CONSTITUTIONAL 8 OFFICER OR AGENCY HEAD FROM HAVING PRINTED ON, OR DISTRIBUTED WITH, EXTRANEOUS 9 PROMOTIONAL MATERIAL AND FROM PURCHASING PLAQUES, AWARDS, CITATIONS, OR OTHER 10 RECOGNITIONS WITHOUT PRIOR UNANIMOUS WRITTEN APPROVAL OF THE STATE BUDGET 11 AND CONTROL BOARD; AND TO REQUIRE AGENCIES EXPENDING NONPUBLIC FUNDS TO SUBMIT 12 THE SOURCE OF THE FUNDS SHOWING ALL CONTRIBUTORS TO THE STATE BUDGET AND 13 CONTROL BOARD; AND TO PROVIDE EXCEPTIONS. 14 15 A. The 1976 Code is amended by adding: 16 17 Section 1-11-470. (A) No funds appropriated by the General Assembly may be used to purchase space including, 18 but not limited to, notices or advertisements, in a print medium or time from a radio or television medium without 19 unanimous prior written approval of the State Budget and Control Board. 20 (B) No funds appropriated by the General Assembly may be used by a constitutional officer or agency head to 21 print on, or distribute with, official documents extraneous promotional material or to purchase plaques, awards, 22 citations, or other recognitions without unanimous prior written approval of the Budget and Control Board. 23 (C) If nonpublic funds are used for the purposes enumerated in subsection (A) the agency expending the funds, 24 must submit the source of the funds showing all contributors, to the State Budget and Control Board before the funds 25 are expended. 26 (D) The provisions of this section do not apply to the Governor or General Assembly. 27 28 B. Of the funds appropriated to the Budget and Control Board - Division of Operations for the Office of General 29 Services in the annual appropriations act for 1997-98 and subsequent years for administration, other operating expenses, 30 and classified positions, sufficient funds must be used to provide staff to review and make recommendations to the State 31 Budget and Control Board for approval of agency or a constitutional officer's plan. 32 33 C. This section is effective July 1, 1997. 34 35 END OF PART II 36 37 All Acts or parts of Acts inconsistent with any of the provisions of Part I of this Act are hereby suspended for the 38 Fiscal Year 1997-98. 39 All Acts or parts of Acts inconsistent with any of the provisions of Part II of this Act are hereby repealed. 40 Except as otherwise specifically provided herein, this Act shall take effect immediately upon its approval by the 41 Governor.