General Appropriations Bill H. 3400 for the fiscal year beginning July 1, 1997
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PART II PAGE 540
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 541
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 542
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 543
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 544
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 545
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. For students in a college preparatory track as defined by
6 the state board, one additional unit must be earned in a foreign language, and for students in a track designed to enter the
7 work force as defined by the state board, one additional vocational unit must be earned. Beginning with the ninth grade
8 class of school year 1997-98, if a student counts one unit of computer science toward his mathematics requirement as
9 permitted above, one additional unit of computer science must be earned."
10
11 SECTION 7
12
13 DELETED
14
15 SECTION 8
16
17 DELETED
18
19 SECTION 9
20
21 DELETED
22
23 SECTION 10
24
25 DELETED
26
27 SECTION 11
28
29 TO REPEAL SECTION 12-4-380 OF THE 1976 CODE, RELATING TO ANNUAL REPORTS BY THE
30 DEPARTMENT OF REVENUE TO THE GENERAL ASSEMBLY OF THE REVENUE IMPACT OF
31 ACTIONS RELATING TO DEPARTMENTAL POLICY DOCUMENTS AND THE REDUCTION OF TAX
32 LIABILITIES ORDERED BY THE DIRECTOR.
33
34 A. Section 12-4-380 of the 1976 Code is repealed.
35
36 B. This section takes effect July 1, 1997.
37
38 SECTION 12
39
40 DELETED
PART II PAGE 546
1 SECTION 13
2
3 TO AMEND SECTION 11-11-140 OF THE 1976 CODE, RELATING TO LIMITATIONS ON GENERAL
4 FUND APPROPRIATIONS FOR A FISCAL YEAR AND THE USE OF SURPLUS REVENUES, SO AS TO
5 DELETE PROVISIONS RELATING TO LIMITATIONS ON ANNUAL GENERAL FUND REVENUES AND
6 USES OF SURPLUS REVENUES TO REFLECT IN THE SECTION THE GOVERNOR'S DUTY ANNUALLY
7 TO PREPARE A BUDGET WITH RESPECT TO CHANGES IN ACCOUNTING METHODS, AND TO
8 PROHIBIT THE GOVERNOR'S ANNUAL BUDGET RECOMMENDATION FROM PROPOSING THE
9 APPROPRIATION OF SURPLUS GENERAL FUND REVENUES IN EXCESS OF AMOUNTS OFFICIALLY
10 RECOGNIZED AS SUCH BY THE BOARD OF ECONOMIC ADVISORS, AND TO PROHIBIT THE
11 APPROPRIATION OF SURPLUS GENERAL FUND REVENUES IN EXCESS OF AMOUNTS OFFICIALLY
12 RECOGNIZED AS SUCH BY THE BOARD OF ECONOMIC ADVISORS.
13
14 A. Section 11-11-140 of the 1976 Code, as last amended by Act 142 of 1995, is further amended to read:
15
16 "Section 11-11-140. (A) (1) General fund appropriations in the annual general appropriations act may not
17 exceed the base revenue estimate as calculated pursuant to subsection (B) or as adjusted pursuant to subsection (C). In
18 the Governor's annual budget recommendation to the General Assembly, no recommendation may be made for the
19 appropriation of surplus general fund revenues in excess of amounts officially recognized as such by the Board of
20 Economic Advisors.
21 (2) In any bill or joint resolution appropriating general fund revenues, no surplus general fund revenue may
22 be appropriated in excess of amounts officially recognized as such by the Board of Economic Advisors.
23 (B) For purposes of this section, the base revenue estimate is the lesser of:
24 (1) (a) the total of recurring general fund revenues collected in the fiscal year completed before the General
25 Assembly first considers the annual general appropriations bill increased by any recurring general fund revenue
26 enhancements occurring in the current fiscal year if such enhancements are certified by the Board of Economic
27 Advisors;
28 (b) increased by a sum equal to seventy-five percent of the amount the general fund revenue estimate of
29 the Board of Economic Advisors for the upcoming fiscal year exceeds the amount in subitem (a) of this item; or
30 (2) the general fund revenue estimate of the Board of Economic Advisors for the upcoming fiscal year.
31 (C) The base revenue estimate may be increased or decreased (1) by any amendment to the general appropriations
32 bill which affects the Board of Economic Advisors revenue estimate or (2) enacted legislation which affects the board's
33 estimate, if the board certifies in writing the change in estimated revenue.
34 (D) Appropriations from surplus may not be made before the first meeting of the General Assembly following the
35 Comptroller General's closing of the books on the fiscal year in which the surplus occurred and may be appropriated
36 only for nonrecurring purposes.
37 (E) In making a the annual budget recommendation to the General Assembly for the fiscal year 1994-95 budget,
38 and for each year thereafter, the Budget and Control Board Governor shall not incorporate or realize any revenue
39 derived on the basis of any future change in a method of accounting, as determined by the Budget and Control Board,
40 unless such the change in a method of accounting is based on statutory authority specifically granted to the Budget and
41 Control Board or a statutory enactment changing the method of accounting.
PART II PAGE 547
1 (F) Notwithstanding the provisions of subsection (D), appropriations from surplus may not be expended before the
2 Comptroller General's closing of the books on the fiscal year in which the surplus occurred. The surplus in this
3 subsection, that is the calculated set-aside as defined in this section, after reduction by way of transfer to the general
4 fund of such amount as necessary to offset any recognized budget shortfall for the fiscal year in which the set-aside
5 surplus occurred, is appropriated for deposit in the State Property Tax Relief Fund. After the first year that the State
6 Property Tax Relief Fund is fully funded, the procedure in subsection (D) must be applied."
7
8 B. This section takes effect July 1, 1997.
9
10 SECTION 14
11
12 DELETED
13
14 SECTION 15
15
16 TO AMEND THE 1976 CODE BY ADDING SECTION 11-11-150 SO AS TO DELETE FROM
17 CALCULATIONS OF STATE GENERAL FUND REVENUES AMOUNTS NECESSARY IN A FISCAL YEAR
18 TO FUND THE TRUST FUND FOR STATE PROPERTY TAX RELIEF FUND, THE HOMESTEAD
19 EXEMPTION TRUST FUND, THE BUSINESS INVENTORY EXEMPTION REIMBURSEMENT TRUST
20 FUND, AND THE DEPRECIATION PROPERTY TAX REIMBURSEMENT TRUST FUND, TO PROVIDE
21 FOR THE TRANSFER TO THESE FUNDS THE REQUIRED AMOUNTS; TO PROVIDE THAT
22 UNEXPENDED BALANCES IN THESE FUNDS LAPSE TO THE GENERAL FUND OF THE STATE, TO
23 MAKE THESE FUNDS UNAVAILABLE FOR APPROPRIATION, TO REQUIRE THE BOARD OF
24 ECONOMIC ADVISORS TO ACCOUNT FOR THESE TRUST FUNDS SEPARATELY IN REPORTS TO
25 THE GOVERNOR AND THE GENERAL ASSEMBLY, AND TO PROVIDE THAT THIS SECTION MUST
26 NOT BE CONSTRUED AS AFFECTING FUNDING LEVELS FOR PUBLIC EDUCATION; TO AMEND
27 SECTIONS 11-11-330, 12-37-251, AND 12-37-450, ALL AS AMENDED, 12-37-935, 12-37-270, AND 12-37-280,
28 RELATING TO THE LOCAL GOVERNMENT FUND, THE STATE PROPERTY TAX RELIEF FUND, THE
29 BUSINESS INVENTORY TAX EXEMPTION REIMBURSEMENT, THE DEPRECIATION PROPERTY TAX
30 REIMBURSEMENT FUND, AND THE RESIDENTIAL AND HOMESTEAD EXEMPTION
31 REIMBURSEMENTS, SO AS TO CONFORM THESE PROVISIONS TO THE TRANSFER
32 REQUIREMENTS OF SECTION 11-11-150, RECONSTITUTE THESE FUNDS AND ACCOUNTS AS TRUST
33 FUNDS, EXTEND THE PHASE IN OF ADDITIONAL DEPRECIATION FROM THREE TO SIX YEARS,
34 DELETE OBSOLETE PROVISIONS, AND REVISE THE SCHEDULE OF REIMBURSEMENT FOR THE
35 RESIDENTIAL HOMESTEAD EXEMPTION; AND TO REDESIGNATE AND AMEND SECTION 6-27-45,
36 RELATING TO HOMESTEAD EXEMPTION REIMBURSEMENTS AS SECTION 6-1-45, AND CONFORM
37 IT TO THE TRANSFER REQUIREMENTS OF SECTION 11-11-150.
38
39 A. Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:
40
41 "Section 11-11-150. (A) In calculating estimated state general fund revenues for a fiscal year there must be
PART II PAGE 548
1 deducted amounts sufficient to fund:
2 (1) the Trust Fund for State Property Tax Relief established pursuant to Section 11-11-330;
3 (2) the Homestead Exemption Trust Fund established pursuant to Section 12-37-270;
4 (3) the Depreciation Property Tax Reimbursement Trust Fund established pursuant to Section 12-37-935(B);
5 and
6 (4) the Inventory Tax Reimbursement Trust Fund established pursuant to Section 12-37-450.
7 (B) The amounts deducted from state general fund revenues pursuant to subsection (A) are automatically
8 transferred to the appropriate separate trust funds for the applicable fiscal year and are not available for appropriation.
9 The Board of Economic Advisors shall account for these trust funds separately from general fund revenues in reports to
10 the Governor and the General Assembly.
11 (C) All formulas calculated on state general fund revenues must reflect the reductions provided by this section.
12 (D) Unexpended balances in the trust funds specified in subsection (A) at the end of a fiscal year lapse to the
13 general fund of the State.
14 (E) The provisions of this section must not be construed as affecting funding levels for public education."
15
16 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
17 and amended to read:
18
19 "Section 6-1-45. Notwithstanding the amount amounts appropriated in the annual general appropriations act for
20 "Homestead Exemption Reimbursement" transferred annually to the Trust Fund for State Property Tax Relief and the
21 Homestead Exemption Reimbursement Trust Fund, there must be annually appropriated transferred to these trust funds
22 from the general fund of the State whatever amount is necessary to reimburse the counties and municipalities of the
23 State for all reimbursed homestead exemptions allowed in accordance with the provisions of law."
24
25 C. Section 11-11-330 of the 1976 Code, as last amended by Section 33A, Part II, Act 458 of 1996, is further amended
26 to read:
27
28 "Section 11-11-330. Funds credited to the Trust Fund for State Property Tax Relief Fund' must be used to
29 provide property tax relief in the manner prescribed in Section 12-37-251. The General Assembly shall appropriate
30 There is transferred to the fund for each fiscal year an amount sufficient to reimburse sums equal to the amount of taxes
31 that were not collected for school districts by reason of the exemption provided in Section 12-37-251."
32
33 D. Subsections (A) and (B) of Section 12-37-251 of the 1976 Code, as last amended by Act 458 of 1996, are further
34 amended to read:
35
36 "(A) The Trust Fund for State Property Tax Relief Fund shall be established at an amount equal to the revenue
37 necessary to fund a property tax exemption of one hundred thousand dollars based on the fair market value of property
38 classified pursuant to Section 12-43-220(c) calculated on the school operating millage imposed for tax year 1995,
39 excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital
40 construction. The 1995 tax year school operating millage is the base year millage for purposes of calculating the
41 amount necessary to fund the Trust Fund for State Property Tax Relief Fund in accordance with this section. However,
PART II PAGE 549
1 in years in which the values resulting from a county-wide reassessment and equalization program are implemented, the
2 base year millage must be adjusted to an equivalent millage rate in the manner that the Department of Revenue shall
3 prescribe. Funds distributed to a taxing district as provided in item (B) of this section must be used to provide a uniform
4 property tax exemption for all property in the taxing district which is classified pursuant to Section 12-43-220(c),
5 excluding taxes levied for bonded indebtedness and payments pursuant to lease purchase agreements for capital
6 construction.
7 (B) School districts must be reimbursed, in the manner provided in Section 12-37-270, for the revenue lost as a
8 result of the homestead exemption provided in this section except that ninety percent of the reimbursement must be paid
9 in the last quarter of the calendar year in the last quarter of the calendar year on December first. "
10
11 E. Section 12-37-450 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:
12
13 "Section 12-37-450. (A) The inventory of business establishments shall be exempt from property taxation as
14 follows: for the 1985 tax year, seventeen percent; for the 1986 tax years, fifty percent; for the 1987 and subsequent tax
15 years, one hundred percent. The exemption herein provided is conditional upon the appropriation by the State to the
16 municipalities and counties for each year an amount equal to tax revenue not collected by reason of the exemption. If
17 the appropriation for any year is less than the amount equal to the tax revenue not collected, the exemption shall be
18 proportionately reduced in the manner provided in (C) below. The exemption provided in this section is not allowed if
19 the return is received by the Commission after the date due or the tax due is received by the county or municipality after
20 the date due.
21 (B) Counties and municipalities must be reimbursed for the revenue lost as a result of the business inventory tax
22 exemption based on the 1987 tax year millage and 1987 tax year assessed value of inventories in the counties and
23 municipalities. If an amount of reimbursement to a political subdivision within a county is attributable to a separate
24 millage for debt service for any purpose, when that debt is paid, the appropriate reimbursement amount must be
25 redistributed proportionately to the other separate millages levied by the political subdivision within the county for the
26 1987 tax year. Notwithstanding amounts appropriated for the inventory tax exemption reimbursement, there There is
27 appropriated transferred annually from the general fund of the State to the Inventory Tax Reimbursement Trust Fund,
28 which is established in the State Treasury as a fund separate and distinct from the general fund of the State and all other
29 funds whatever amount is necessary to reimburse fully all counties and municipalities the required amount. The
30 Comptroller General shall make remittances of this reimbursement to counties and municipalities in four equal
31 payments.
32 (C) The South Carolina Tax Commission shall annually notify each county auditor of the fair market value of
33 merchant's inventory in the manner provided by Section 12-37-1420, which must be assessed at a six percent ratio and
34 entered on the tax duplicate. For the purpose of implementing the business inventory tax exemption provided in this
35 section, the assessed value will then be credited by seventeen percent for taxable year 1985, by fifty percent for taxable
36 year 1986, and by one hundred percent for taxable year 1987 and after 1987. If, for taxable years 1986 and 1987 the
37 State does not reimburse the counties and municipalities for the full amount of the revenue lost because of the applicable
38 exemption, the counties and municipalities shall credit the percentage reimbursed to the merchant's account and bill the
39 remainder to the merchant.
40 (D) Notwithstanding any other provision of law, business inventory exempted from property taxation in the
41 manner provided in this section is considered taxable property in an amount equal to the 1987 tax year assessed
PART II PAGE 550
1 valuation for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this
2 State and for purposes of computing the index of taxpaying ability' pursuant to item (3) of Section 59-20-20.
3 (E) Where a portion of a special purpose district is annexed to a municipality, and its service functions in the
4 annexed area are assumed by the municipality, the total amount remitted to the county and municipality under this
5 section shall not exceed the total amount which would be remitted to the two entities separately. However, the assessed
6 valuation and special purpose district tax levy for tax year 1987 with respect to the annexed portion of the special
7 purpose district must be taken into consideration in determining the proportionate share of the total allocation due to the
8 county and the municipality."
9
10 F. Section 12-37-935 of the 1976 Code, as added by Section 8A, Part II, Act 458 of 1996, is amended to read:
11
12 "Section 12-37-935. (A) Except as provided in Section 12-37-930 for custom molds and dies used in the conduct
13 of manufacturing electronic interconnection component assembly devices for computers and computer peripherals, and
14 equipment used in the manufacture of tires by manufacturers who employ more than five thousand employees in this
15 State and have over one billion dollars in capital investment in this State, the original cost must not be reduced more
16 than the percentage provided in the following schedule:
17
18 Property Tax Year Maximum Percentage Depreciation
19 Before 1997 80 percent
20 1997 83.3 81.65 percent
21 1998 86.6 83.3 percent
22 1999 84.95 percent
23 2000 6.6 percent
24 2001 88.25 percent
25 After 1998 2001 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 551
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. This section takes effect July 1, 1997, and first applies for general fund revenues available for appropriation for
30 fiscal years beginning after June 30, 1998, and accounting for general fund revenues affecting appropriations for fiscal
31 year 1998-99.
32
33 SECTION 16
34
35 TO AMEND SECTION 14-7-845 OF THE 1976 CODE, RELATING TO THE OPTIONAL POSTPONEMENT OF
36 JURY SERVICE FOR STUDENTS, SO AS TO PROVIDE THAT TEACHERS AND SCHOOL
37 ADMINISTRATORS MAY ALSO POSTPONE THEIR JURY SERVICE DURING THE SCHOOL TERM, TO
38 DEFINE A TEACHER AND SCHOOL ADMINISTRATOR FOR THIS PURPOSE, AND TO PROVIDE FOR THE
39 USE OF CERTAIN STATE FUNDS TO PAY A SUBSTITUTE TEACHER DURING THE REGULAR TEACHER'S
40 ABSENCE FOR JURY SERVICE.
PART II PAGE 552
1 A. Section 14-7-845 of the 1976 Code, as added by Act 427 of 1990, is amended to read:
2
3 "Section 14-7-845. If a student selected for jury service during the school term so requests, his service must be
4 postponed to a date that does not conflict with the school term. For purposes of this section, a student is a person enrolled
5 in high school or an institution of higher learning, including technical college.
6 If a teacher or school administrator selected for jury service during the school term also requests, the service must be
7 postponed to a date that does not conflict with the school term. For purposes of this section, a teacher' or school
8 administrator' means a person employed by and works on campus for an elementary or secondary school in this State. In
9 the event a teacher chooses to serve on a jury, the district may use money appropriated for the base student cost to pay a
10 substitute teacher during the regular teacher's absence."
11
12 B. This section takes effect upon approval by the Governor.
13
14 SECTION 17
15
16 TO AMEND THE 1976 CODE BY ADDING SECTION 59-39-101 SO AS TO PROVIDE THAT PUBLIC AND
17 NONPUBLIC HIGH SCHOOL GRADUATES OF THIS STATE WHO MEET CERTAIN SPECIFIED CRITERIA
18 SHALL RECEIVE A SUPERIOR ACADEMIC ACHIEVEMENT HIGH SCHOOL DIPLOMA, AND ALSO SHALL
19 RECEIVE A FIVE HUNDRED DOLLAR SCHOLARSHIP TO ATTEND ANY STATE-SUPPORTED
20 INSTITUTION OF HIGHER LEARNING OR TECHNICAL COLLEGE.
21
22 A. The 1976 Code is amended by adding:
23
24 "Section 59-39-101. (A) For the purpose of recognizing and rewarding outstanding performance and academic
25 achievement on the part of public and nonpublic school students, each high school graduate who meets the requirements
26 of this section beginning with the 1997-98 school year must be awarded a Superior Academic Achievement High School
27 Diploma.
28 (B) In order to qualify for a Superior Academic Achievement High School Diploma a student shall complete at least
29 twenty-four units as prescribed by the State Board of Education including:
30 (1) four units of English or language arts;
31 (2) four units of mathematics;
32 (3) four units of science;
33 (4) four units of social science or history;
34 (5) two units of foreign or classical languages;
35 (6) one unit of computer science;
36 (7) one unit of the arts or music;
37 (8) one unit of physical education or health; and
38 (9) three elective units.
39 (C) A student who receives a Superior Academic Achievement High School Diploma and attends a public or private
40 South Carolina institution of higher learning or technical college shall receive a five hundred dollar scholarship from the
41 State paid to the institution.
PART II PAGE 553
1 (D) Each district school board of trustees and the administrators of each nonpublic school are encouraged to make
2 provisions, through appropriate and adequate course offerings in each high school or through cooperative arrangements with
3 other schools, for students desiring to receive a Superior Academic Achievement High School Diploma.
4 (E) The State Board of Education is authorized to promulgate regulations necessary for the implementation and
5 administration of this section. These regulations shall include specific course requirements and may also establish
6 alternatives to any area of study or course of study specified herein, provided that the adopted curriculum framework
7 demonstrates that the alternative authorized is equivalent or more advanced."
8
9 B. This section takes effect upon approval of the Governor.
10
11 SECTION 18
12
13 TO AMEND SECTION 56-3-5010, AS AMENDED, OF THE 1976 CODE, RELATING TO THE ISSUANCE OF
14 "PUBLIC EDUCATION: A GREAT INVESTMENT" SPECIAL LICENSE PLATES, SO AS TO PROVIDE THAT
15 A LICENSE PLATE PURCHASER MAY DESIGNATE A SCHOOL DISTRICT OR A SCHOOL TO RECEIVE
16 A PORTION OF THE LICENSE PLATE FEE, TO PROVIDE THAT THE DEPARTMENT OF PUBLIC SAFETY
17 SHALL REPORT TO THE DEPARTMENT OF EDUCATION THE SCHOOL DISTRICT AND THE SCHOOL
18 CHOSEN BY THE LICENSE PLATE PURCHASER TO RECEIVE A PORTION OF THE LICENSE PLATE FEE,
19 AND TO PROVIDE THAT THE DEPARTMENT OF EDUCATION SHALL DISTRIBUTE A PORTION OF THE
20 LICENSE PLATE FEE TO A SCHOOL DISTRICT FOR FURTHER DISTRIBUTION TO A SCHOOL CHOSEN
21 BY THE LICENSE PLATE PURCHASER.
22
23 A. Section 56-3-5010 of the 1976 Code, as added by Act 342 of 1996, is amended to read:
24
25 "Section 56-3-5010. The Department of Public Safety may issue a special commemorative Public Education: A Great
26 Investment' motor vehicle license plate to establish a special fund to be used by the Department of Education for the purpose
27 of providing computers to the school districts public schools. The biennial fee for the commemorative license plate is
28 fifty-four dollars, and of this amount, twenty dollars must be placed in a special Public Education: A Great Investment
29 Fund' established within and administered by the Department of Education to purchase computers for use in the classroom
30 and thirty-four dollars must be distributed to the school districts where the purchasers of the license plates reside district or
31 a school chosen by the license plate purchaser to be used to purchase computers for use in the classroom. The Department
32 of Public Safety shall report to the Department of Education the school district and the school chosen by the license plate
33 purchaser to which the funds must be distributed. The Department of Education shall distribute funds to the district for
34 further distribution to the schools chosen by the license plate purchasers. The commemorative plate must be of the same
35 size and general design of regular motor vehicle license plates and must be imprinted with the words Public Education:
36 A Great Investment'. The plates must be issued or revalidated for a biennial period which expires twenty-four months from
37 the month they are issued."
38
39 B. This section takes effect July 1, 1997.
PART II PAGE 554
1 SECTION 19
2
3 TO AMEND THE 1976 CODE BY ADDING SECTION 59-19-45 SO AS TO PROVIDE THAT ALL SCHOOL
4 BOARD MEMBERS OR MEMBERS OF COUNTY BOARDS OF EDUCATION FIRST ELECTED OR
5 APPOINTED AFTER JULY 1, 1997, SHALL COMPLETE SUCCESSFULLY AN ORIENTATION PROGRAM,
6 TO PROVIDE FOR THE MANNER IN WHICH THIS ORIENTATION PROGRAM SHALL BE CONDUCTED,
7 AND TO PROVIDE FOR CERTAIN REIMBURSEMENT TO SCHOOL DISTRICTS OR COUNTY BOARDS OF
8 EDUCATION FOR THE COST OF THIS ORIENTATION PROGRAM.
9
10 A. The 1976 Code is amended by adding:
11
12 "Section 59-19-45. (A) Within one year of taking office, all persons elected or appointed as members of a school
13 district board of trustees after July 1, 1997, shall successfully complete an orientation in the powers, duties, and
14 responsibilities of a board member including, but not limited to, topics on policy development, personnel, superintendent
15 and board relations, instructional programs, district finance, school law, ethics, and community relations.
16 (B) The orientation shall be approved by the State Board of Education and conducted by public or private entities
17 approved by the State Board of Education such as the South Carolina School Boards Association.
18 (C) The provisions of this section also apply to members of county boards of education appointed or elected after July
19 1, 1997, in the same manner the provisions of this section apply to members of school district boards of trustees.
20 (D) The provisions of this section do not apply to a school board trustee or county board of education member who
21 was serving in such office on July 1, 1997, and who is continuously reelected or reappointed to office thereafter.
22 (E) The State Department of Education shall reimburse a school district or county board of education conducting an
23 orientation for a new board member as required by this section at the rate of eighty dollars per member, provided that the
24 total reimbursements by the department in any one fiscal year must not exceed ten thousand dollars. If the total projected
25 cost of these reimbursements for any year as determined by the department exceeds ten thousand dollars, the eighty dollar
26 reimbursement per new member must be reduced proportionately. If funds are not available for these reimbursements, the
27 board member orientation is not required but may be conducted at the option of a school district or county board of
28 education. The State Board of Education shall establish guidelines and procedures for these reimbursements."
29
30 B. This section takes effect upon approval by the Governor.
31
32 SECTION 20
33
34 TO AMEND SECTION 59-142-10, OF THE 1976 CODE, RELATING TO THE NEED-BASED GRANTS
35 PROGRAM UNDER WHICH STUDENTS MAY RECEIVE A NEED-BASED GRANT FROM THE CHILDREN'S
36 EDUCATION ENDOWMENT FUND, SO AS TO PROVIDE THAT PART-TIME AS WELL AS FULL-TIME
37 STUDENTS ARE ELIGIBLE FOR SUCH GRANTS.
38
39 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:
40
41 "Section 59-142-10. (A) The State shall fund a need-based grant for a student who enrolls as an undergraduate in a
PART II PAGE 555
1 public institution of higher learning in this State, who applies for the need-based grant, and who meets the following
2 qualifications:
3 (1) meets domicile requirements as defined in Section 59-112-20 with the additional requirement of at least
4 twelve consecutive months of residency in the State of South Carolina immediately preceding enrollment;
5 (2) is accepted by and enrolled or registered in a state public institution of higher learning as a first degree
6 full-time or part-time student in a certificate, or diploma of at least one year in length, or undergraduate degree program;
7 (3) is of good moral character and has never been convicted of a felony; and
8 (4) is found to be in financial need according to federal Title IV regulations.
9 (B) To maintain continued state need-based grants, once enrolled a student shall:
10 (1) complete a minimum of twenty-four semester hours an academic year if a full-time student and twelve
11 semester hours an academic year if a part-time student and make satisfactory academic progress toward a degree as
12 determined by the institution;
13 (2) have no criminal record;
14 (3) be eligible for the need-based grants for a maximum of four academic years of two semesters."
15
16 B. This act takes effect upon approval by the Governor.
17
18 SECTION 21
19
20 TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EDUCATION, BY
21 ADDING CHAPTER 118 SO AS TO ENACT THE SOUTH CAROLINA ACADEMIC ENDOWMENT INCENTIVE
22 ACT OF 1997 WHICH PERMITS CERTAIN STATE-SUPPORTED COLLEGES AND UNIVERSITIES TO
23 RECEIVE STATE MATCHING FUNDS FOR ACADEMIC PURPOSES FROM THE HIGHER EDUCATION
24 MATCHING GIFT FUND HEREIN ESTABLISHED, AND TO PROVIDE FOR THE MANNER IN WHICH
25 STATE MATCHING FUNDS SHALL BE PROVIDED.
26
27 A. Title 59 of the 1976 Code is amended by adding:
28
29 "CHAPTER 118
30
31 South Carolina Academic Endowment Incentive Act of 1997
32
33 Section 59-118-10. This chapter is known and may be cited as the South Carolina Academic Endowment Incentive
34 Act of 1997.
35
36 Section 59-118-20. The purposes of this chapter are to:
37 (1) further the state's efforts to meet its responsibility for the intellectual development of our youth;
38 (2) enhance statewide economic development through initiatives in higher education; to provide incentives to
39 individuals, corporations, or private funding organizations to create endowments to support the teaching and related
40 activities at South Carolina's public colleges and universities;
41 (3) supplement the financial impacts of newly created endowments that support these colleges and universities.
PART II PAGE 556
1 Section 59-118-30. For purposes of this chapter:
2 (1) Qualifying college or university' means a state-supported, post-secondary, four-year educational institution
3 offering undergraduate, master, or doctoral degree programs.
4 (2) Endowments' mean permanent gifts or donations to the qualifying college or university or its principal foundation
5 including cash, income producing securities, an income producing business, real property, personal property, fixed assets,
6 mortgage notes, and life income gifts or bequests. Research grants and funds received by the institution in the performance
7 of a contractual obligation are not an endowment for purposes of this chapter.
8 (3) Principal foundation' means a foundation designated by the Board of trustees of the qualifying college or
9 university and registered with the South Carolina Secretary of State.
10 (4) Year' means a state fiscal year beginning on the first day of July and ending the following June thirtieth.
11
12 Section 59-118-40. Each qualifying college or university will provide donors with an incentive in the form of
13 matching state gifts on disbursements from earnings on certain endowments, donations, or gifts if these monies are used for
14 the purposes specified in Section 59-118-50.
15
16 Section 59-118-50. Disbursements from the earnings must be used to provide funds for academic purposes, to include
17 academic scholarships, and are then eligible to receive state matching funds.
18
19 Section 59-118-60. There is created the South Carolina Higher Education Matching Gift Fund which shall be separate
20 and distinct from the state general fund and shall be administered by the Commission on Higher Education with the funds
21 appropriated by the General Assembly in the general appropriations act of 1997-98. The General Assembly in the annual
22 general appropriations act shall appropriate monies into this matching gift fund not to exceed five million dollars annually
23 to be used for the purpose of providing matching state funds to qualifying colleges and universities for purposes stipulated
24 by this chapter. The disbursement match cannot exceed the amount provided by the South Carolina Higher Education
25 Matching Gift Fund. The State Treasurer shall manage and invest the monies in the Higher Education Matching Gift Fund
26 in the same manner and under the same terms and conditions as other state funds under his control are managed and
27 invested, and disbursements to particular colleges or universities shall be made on warrant and under the direction of the
28 Commission on Higher Education pursuant to the provisions of this chapter.
29
30 Section 59-118-70. The State of South Carolina, acting through the Commission on Higher Education, shall provide
31 funds to match funds from the qualifying college, university, or principal foundation, to the extent of available funds, from
32 the South Carolina Higher Education Matching Gift Fund established in Section 59-118-60.
33
34 Section 59-118-80. The state matching gifts authorized in Section 59-118-70 are subject to the following conditions:
35 (1) qualifying disbursements to which the state matching gift is applied must come from the earnings of the
36 endowment and not from principal or corpus;
37 (2) the state matching funds must go directly into the college or university's operating account to be spent only for
38 the purposes authorized;
39 (3) the college or university must make application to receive state matching funds on forms and under procedures
40 prescribed by the Commission on Higher Education;
41
PART II PAGE 557
1 Section 59-118-90. The Commission on Higher Education shall specify by regulation the procedures for submission
2 and documentation of requests for matching state funds.
3
4 Section 59-118-100. The Commission on Higher Education shall ensure that each qualifying college or university
5 receives its proportionate share of the State Higher Education Matching Gift Fund based on the ratio of disbursements. Any
6 monies in the State Higher Education Matching Gift Fund not distributed in any year shall be carried forward for the same
7 purposes in future years and all earnings on monies in the State Higher Education Matching Gift Fund must be retained in
8 the fund and used for its stated purposes."
9
10 B. This act takes effect July 1, 1997.
11
12 SECTION 22
13
14 TO AMEND SECTION 48-48-140, AS AMENDED, OF THE 1976 CODE, RELATING TO THE LOW-LEVEL
15 RADIOACTIVE WASTE DISPOSAL TAX, SO AS TO IMPOSE A CONTINGENT LICENSE TAX ON
16 OPERATORS OF LICENSED LOW-LEVEL RADIOACTIVE WASTE DISPOSAL SITES, TO PROVIDE THE
17 MEASURE OF THE TAX AS AN AMOUNT EQUAL TO POSSIBLE SHORTFALLS IN THE SCHOLARSHIPS
18 PORTION OF THE CHILDREN'S EDUCATION ENDOWMENT FUND, THE TIME OF PAYMENT, METHOD
19 OF COLLECTION, AND DISPOSITION OF THE REVENUE.
20
21 A. Section 48-48-140 of the 1976 Code, as last amended by Act 458 of 1996, is further amended by adding an
22 appropriately lettered subsection at the end to read:
23
24 "( ) In addition to the disposal tax imposed pursuant to this section, there is imposed a contingent annual license tax
25 on any company which operates a licensed disposal site in this State for the disposal of low-level radioactive waste. The
26 tax is an amount determined as follows:
27 (1) for the fiscal year beginning July 1, 1996, and ending June 30, 1997, the shortfall, if any, in amounts credited
28 for the fiscal year to the Higher Education Scholarship Grants portion of the Children's Education Endowment Fund and
29 twenty-two million dollars;
30 (2) for the fiscal year beginning July 1, 1997, and ending June 30, 1998, an amount calculated as provided in item
31 (1), except that the applicable fiscal year is 1997-98 and the applicable amount is twenty-three million dollars;
32 (3) for fiscal years beginning after June 30, 1998, an amount as determined in item (1), except that the applicable
33 fiscal year is the then current fiscal year and the applicable amount is twenty-four million dollars.
34 The tax imposed by this subsection is due and payable at the same time provided for the payment of the disposal fee
35 provided pursuant to subsection (B), calculated proportionately over the fiscal year . Underpayments or overpayments in
36 a year must be reflected by an adjusted payment for the first quarter of the succeeding fiscal year.
37 The tax imposed by this subsection is enforceable as provided in Chapter 54 of Title 12.
38 Notwithstanding the provisions of this subsection, the entire contingent license tax due for Fiscal Year 1996-97 and
39 the estimated contingent license tax due for the first quarter of Fiscal Year 1997-98 are due and payable before January 31,
40 1998.
41 Notwithstanding the provisions of Section 59-143-10, the amount of earned revenue for the Higher Education
PART II PAGE 558
1 Scholarship Grants portion for Fiscal Year 1996-97 must be increased by the contingent annual license tax due and payable
2 by January 31, 1998.
3 Revenue of the contingent license tax imposed by this section must be credited to the Higher Education Scholarship
4 Grants portion of the Children's Education Endowment Fund."
5
6 B. This section takes effect upon approval by the Governor and first applies for the contingent license tax due for Fiscal
7 Year 1996-97.
8
9 SECTION 23
10
11 TO REPEAL SECTION 44-1-120 OF THE 1976 CODE, RELATING TO THE ANNUAL REPORT BY THE
12 DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO THE GENERAL ASSEMBLY.
13
14 A. Section 44-1-120 of the 1976 Code is repealed.
15
16 B. This section takes effect July 1, 1997.
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 PARTNERSHIPS
24 OF MUNICIPAL GOVERNMENT, COUNTY GOVERNMENT, AND PRIVATE INVESTORS AND TO PROVIDE
25 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 Downtown
30 Redevelopment Program' for the purpose of making grants for revitalizing and enhancing the viability of downtown areas
31 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;
35 (2) completing an economic impact before an award is made; and
36 (3) at least one-third of all funds available for grants must be awarded to municipalities with a population less than
37 eight thousand as of the most recent United States Census in which one or more major businesses have closed in the twenty-
38 four months preceding the grant application."
39
40 B. This section takes effect July 1, 1997.
PART II PAGE 559
1 SECTION 25
2
3 TO AMEND SECTION 8-21-310, AS AMENDED, OF THE 1976 CODE, RELATING TO FEES AND COSTS
4 COLLECTED BY COUNTY OFFICIALS, SO AS TO ADD A SURCHARGE OF FIFTEEN DOLLARS TO THE
5 FEE FOR FILING A COMPLAINT OR PETITION IN CIRCUIT OR FAMILY COURT TO BE ALLOCATED
6 TOWARD CIVIL REPRESENTATION OF INDIGENTS.
7
8 A. Section 8-21-310(11)(a) of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read:
9
10 "(a) (1) For filing first complaint or petition, including application for a remedial and prerogative writ and bond on
11 attachment or other bond, in a civil action or proceeding, in a court of record, fifty-five dollars. There is no further fee for
12 filing an amended or supplemental complaint or petition nor for filing any other paper in the same action or proceeding.
13 An original application for postconviction relief may be filed without fee upon permission of the court to which the
14 application is addressed. There is no further fee for entering and filing a verdict, judgment, final decree, or order of
15 dismissal, and enrolling a judgment thereon on it, for signing, sealing, and issuance of execution, or for entering satisfaction
16 or partial satisfaction on a judgment.
17 (2) A fifteen dollar surcharge is added to each fee for filing a complaint or petition in circuit or family court.
18 Funds received from the surcharge must be forwarded to the Commission on Indigent Defense for semiannual distribution
19 on December thirty-first and on June thirtieth of each year, to the following recipients, proportionate to each recipient's share
20 of the state's poverty population:
21 (i) Carolina Regional Legal Services, Inc.;
22 (ii) Legal Services Agency of Western Carolina, Inc.;
23 (iii) Neighborhood Legal Assistance Program, Inc.;
24 (iv) Palmetto Legal Services, Inc.;
25 (v) Piedmont Legal Services, Inc.
26 Each recipient shall conduct a fiscal year-end audit of the funds distributed pursuant to this item, and shall provide a
27 copy to the House Ways and Means and Senate Finance Committees. The circuit and family courts, pursuant to appropriate
28 rules of the South Carolina Rules of Civil Procedure, may waive the surcharge in the case of a filing in forma pauperis."
29
30 B. This section takes effect July 1, 1997.
31
32 SECTION 26
33
34 TO AMEND THE 1976 CODE BY ADDING SECTION 1-11-185 SO AS TO PROVIDE THAT THE BUDGET AND
35 CONTROL BOARD MAY ADOPT RULES AND PROMULGATE CERTAIN REGULATIONS THAT GOVERN
36 THE OPERATION OF THE DEPARTMENT OF CORRECTIONS; AND TO AMEND SECTION 24-1-140,
37 RELATING TO POWERS OF THE DIRECTOR OF THE DEPARTMENT OF CORRECTIONS, SO AS TO
38 PROVIDE THAT THE DIRECTOR OF THE DEPARTMENT OF CORRECTIONS SHALL PERFORM CERTAIN
39 DUTIES TO CARRY OUT THE INTENT OF CHAPTER 1, TITLE 24 OF THE 1976 CODE, SHALL CARRY OUT
40 CERTAIN DIRECTIVES OF THE BUDGET AND CONTROL BOARD, AND IS AUTHORIZED TO MAKE AND
41 EXECUTE CERTAIN CONTRACTS.
PART II PAGE 560
1 A. Article 1, Chapter 11, Title 1 of the 1976 Code is amended by adding:
2
3 "Section 1-11-185. (A) The Budget and Control Board is authorized to adopt rules and promulgate regulations
4 governing the transaction of the business of the penal system of the State by the Department of Corrections and its director
5 and the administration of the affairs of the penal system in the different penal institutions under its authority and supervision
6 and shall make the institutions as self-supporting as possible.
7 (B) The Budget and Control Board shall adopt rules and promulgate regulations governing the negotiation and
8 execution of any contract for the land acquisition, design, construction, operation, maintenance, use, lease, or management
9 of a state correctional institution or for any services pertaining to the custody, care, and control of inmates or other functions
10 related to the discharge of these responsibilities.
11 (C) All rules adopted and regulations promulgated must comply with the provisions of the Administrative Procedures
12 Act. The courts shall take judicial notice of these rules and regulations.
13 (D) The director of the Department of Corrections shall cause to be designed and constructed institutions
14 commensurate with security levels and quality standards, including operational costs and staffing, which exist at other
15 recently constructed South Carolina correctional facilities."
16
17 B. Section 24-1-140 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
18
19 "Section 24-1-140. (A) The director shall have power to prescribe reasonable rules and regulations governing the
20 humane treatment, training, and discipline of prisoners, and to make provision for the separation and classification of
21 prisoners according to sex, color, age, health, corrigibility, and character of offense upon which the conviction of the
22 prisoner was secured.
23 (B) The director shall perform other duties and functions that are necessary or desirable to carry out the intent of this
24 chapter and that he may be directed to perform by the Budget and Control Board. The director, or his designee, is
25 authorized to make and execute contracts and all other instruments necessary or convenient for the acquisition of
26 professional and personal employment services and for the leasing of real property.
27 Subject to legislative appropriations, the director is authorized to make and execute any contract for the land
28 acquisition, design, construction, operation, maintenance, use, lease, or management of a state correctional institution or
29 for any services pertaining to the custody, care, and control of inmates or other functions that are related to the discharge
30 of these responsibilities and to designate any person or organization with whom the director contracts as a law enforcement
31 unit."
32
33 C. This section takes effect July 1, 1997.
34
35 SECTION 27
36
37 TO AMEND SECTION 14-5-610, AS AMENDED, OF THE 1976 CODE, RELATING TO CIRCUIT COURTS AND
38 CIRCUIT COURT JUDGES, SO AS TO ADD AN ADDITIONAL JUDGE FOR THE FIRST, FIFTH, AND
39 THIRTEENTH CIRCUITS; TO AMEND SECTION 20-7-1410, AS AMENDED, RELATING TO THE FAMILY
40 COURTS AND FAMILY COURT JUDGES, SO AS TO ADD AN ADDITIONAL JUDGE FOR THE FIRST,
41 NINTH, AND THIRTEENTH CIRCUITS, TO PROVIDE FOR THE DATE THESE JUDGES TAKE OFFICE, AND
PART II PAGE 561
1 TO FURTHER PROVIDE FOR THE RESIDENCY REQUIREMENTS FOR CERTAIN OF THESE FAMILY
2 COURT JUDGES.
3
4 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
5 to read:
6
7 "Section 14-5-610. The State is divided into sixteen judicial circuits as follows:
8 (1) The first circuit is composed of the counties of Calhoun, Dorchester, and Orangeburg.
9 (2) The second circuit is composed of the counties of Aiken, Bamberg, and Barnwell.
10 (3) The third circuit is composed of the counties of Clarendon, Lee, Sumter, and Williamsburg.
11 (4) The fourth circuit is composed of the counties of Chesterfield, Darlington, Marlboro, and Dillon.
12 (5) The fifth circuit is composed of the counties of Kershaw and Richland.
13 (6) The sixth circuit is composed of the counties of Chester, Lancaster, and Fairfield.
14 (7) The seventh circuit is composed of the counties of Cherokee and Spartanburg.
15 (8) The eighth circuit is composed of the counties of Abbeville, Greenwood, Laurens, and Newberry.
16 (9) The ninth circuit is composed of the counties of Charleston and Berkeley.
17 (10) The tenth circuit is composed of the counties of Anderson and Oconee.
18 (11) The eleventh circuit is composed of the counties of Lexington, McCormick, Saluda, and Edgefield.
19 (12) The twelfth circuit is composed of the counties of Florence and Marion.
20 (13) The thirteenth circuit is composed of the counties of Greenville and Pickens.
21 (14) The fourteenth circuit is composed of the counties of Allendale, Hampton, Colleton, Jasper, and Beaufort.
22 (15) The fifteenth circuit is composed of the counties of Georgetown and Horry.
23 (16) The sixteenth circuit is composed of the counties of York and Union.
24 One judge must be elected from the first, second, sixth, twelfth, and sixteenth circuits. Two judges must be elected
25 from the first, third, fourth, seventh, eighth, tenth, eleventh, fourteenth, and fifteenth circuits. Three judges must be elected
26 from the fifth, ninth, and thirteenth circuits circuit. Four judges must be elected from the fifth and thirteenth circuits.
27 In addition to the above judges authorized by this section, there must be thirteen additional circuit judges elected by
28 the General Assembly from the State at large for terms of office of six years. These additional judges must be elected
29 without regard to county or circuit of residence. Each office of the at-large judges is a separate office and is assigned
30 numerical designations of Seat No. 1 through Seat No. 13 respectively."
31
32 B. Section 20-7-1410 of the 1976 Code, as last amended by Part II, Section 85E Act 145 of 1995, is further amended to
33 read:
34
35 "Section 20-7-1410. The General Assembly shall elect a number of family court judges from each judicial circuit as
36 follows:
37
38 First Circuit Two Three Judges
39 Second Circuit Two Judges
40 Third Circuit Three Judges
41 Fourth Circuit Three Judges
PART II PAGE 562
1 Fifth Circuit Four Judges
2 Sixth Circuit Two Judges
3 Seventh Circuit Three Judges
4 Eighth Circuit Three Judges
5 Ninth Circuit Five Six Judges
6 Tenth Circuit Three Judges
7 Eleventh Circuit Three Judges
8 Twelfth Circuit Three Judges
9 Thirteenth Circuit Five Six Judges
10 Fourteenth Circuit Three Judges
11 Fifteenth Circuit Three Judges
12 Sixteenth Circuit Two Judges
13
14 In the following judicial circuits at least one family court judge must be a resident of each county in the circuit: fifth,
15 seventh, ninth, tenth, twelfth, thirteenth, fifteenth, and sixteenth. In those judicial circuits made up of three or more counties
16 at least one family court judge must be a resident of one of the counties which does not have the largest population in the
17 circuit. In the ninth circuit, both counties in the circuit must have at least two resident family court judges.
18 No county in the sixth circuit shall have more than one resident family court judge."
19
20 C. Those additional circuit court and family court judges authorized by the provisions of subsections (A) and (B) of
21 this section shall take office May 17, 1998, and the Judicial Merit Selection Commission on the effective date of this section
22 shall begin the process of nominating candidates for these offices and the General Assembly shall then elect such judges
23 from the nominees of the commission so that these judges may take office on May 17, 1998."
24
25 SECTION 28
26
27 TO AMEND SECTION 9-8-120, AS AMENDED, OF THE 1976 CODE, RELATING TO THE RETURN OF
28 BENEFICIARIES TO STATE SERVICE AND THE PRACTICE OF LAW FOR MEMBERS OF THE
29 RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO FURTHER PROVIDE FOR THE
30 MANNER IN WHICH A RETIRED JUDGE OR JUSTICE MUST MAKE AN ELECTION TO PRACTICE LAW
31 OR BE ELIGIBLE FOR APPOINTMENT TO SERVE IN THE COURTS OF THIS STATE AND TO PROVIDE
32 THAT AN ELECTION TO PRACTICE LAW IS IRREVOCABLE.
33
34 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:
35
36 "(4) A justice or judge drawing retirement compensation who engages in the practice of law may not serve as a
37 justice or judge in any court in this State. Within thirty days of his retirement under this chapter, a retired judge or justice
38 shall make an irrevocable election as to whether he wishes to engage in the practice of law or be eligible for appointment
39 by the Chief Justice as a judge or justice in the courts of this State. If his election is to engage in the practice of law, it is
40 irrevocable and he may not thereafter be appointed by the Chief Justice to serve as a justice or judge in the courts of this
41 State. If his election is to be eligible for appointment to serve as a justice or judge in the courts of this State and not to
PART II PAGE 563
1 practice law, he may at any time thereafter change such election and decide to engage in the practice of law, at which point
2 his decision becomes irrevocable."
3
4 B. This section takes effect July 1, 1997.
5
6 SECTION 29
7
8 TO AMEND THE 1976 CODE BY ADDING SECTION 38-7-35 SO AS TO PROVIDE THAT TWO HUNDRED
9 FIFTY THOUSAND DOLLARS OF THE REVENUE COLLECTED ANNUALLY PURSUANT TO SECTION
10 38-7-30, REGARDING THE TAX ON FIRE INSURERS TO COVER EXPENSES OF INSPECTIONS AND
11 INVESTIGATIONS, MUST BE TRANSFERRED TO THE DEPARTMENT OF LABOR, LICENSING AND
12 REGULATION FOR CERTAIN PURPOSES AND REQUIRE THE DEPARTMENT TO MAKE AN ANNUAL
13 REPORT.
14
15 The 1976 Code is amended by adding:
16
17 "Section 38-7-35. (A) Two hundred fifty thousand dollars of the revenue collected annually pursuant to Section
18 38-7-30 must be transferred to the Department of Labor, Licensing and Regulation for the purpose of implementing the
19 training, certification, and continuing education program for building codes enforcement officers as provided by law.
20 (B) The Department of Labor, Licensing and Regulation shall report annually to the Chairman of the Senate Finance
21 Committee and the Chairman of the House Ways and Means Committee detailing actual program expenditures including,
22 but not limited to, the number of instructors employed, the number of training sessions conducted, and the number of
23 certifications issued. This report must be submitted to the respective chairmen no later than January fifteenth of each year."
24
25 SECTION 30
26
27 TO REPEAL CHAPTER 51, TITLE 2 OF THE 1976 CODE, RELATING TO THE JOINT LEGISLATIVE STUDY
28 COMMITTEE ON SERVICES, PROGRAMS, AND FACILITIES FOR THE AGING.
29
30 A. Chapter 51, Title 2 of the 1976 Code is repealed.
31
32 B. This section takes effect July 1, 1997.
33
34 END OF PART II
35
36 All Acts or parts of Acts inconsistent with any of the provisions of Part I of this Act are hereby suspended for the Fiscal
37 Year 1997-98.
38 All Acts or parts of Acts inconsistent with any of the provisions of Part II of this Act are hereby repealed.
39 Except as otherwise specifically provided herein, this Act shall take effect immediately upon its approval by the
40 Governor.
PART II PAGE 539
1 PART II
2
3 PERMANENT PROVISIONS
4
5 SECTION 1
6
7 The Code Commissioner is directed to include all permanent general laws in this Part in the next edition of the Code of
8 Laws of South Carolina, 1976, and all supplements to the Code.
9
10 SECTION 2
11
12 DELETED
13
14 SECTION 3
15
16 TO AMEND SECTION 38-7-30, AS AMENDED, OF THE 1976 CODE, RELATING TO THE TAX ON FIRE
17 INSURERS TO COVER THE EXPENSES OF INSPECTIONS AND INVESTIGATIONS, SO AS TO
18 PROVIDE, AMONG OTHER THINGS, FOR THE USE OF FIFTY PERCENT OF THE ONE PERCENT TAX
19 LEVIED IN THIS SECTION AND FOR AN ANNUAL REPORT OF THE DEPARTMENT OF LABOR,
20 LICENSING AND REGULATION.
21
22 A. Section 38-7-30 of the 1976 Code, as amended by Section 534 of Act 181 of 1993, is further amended to read:
23
24 "Section 38-7-30. Any expenses, including expenses of counsel, detectives, and officers, incurred by the
25 discrimination in rates, must be defrayed by the fire insurance companies doing business in this State, and a tax of one
26 percent on the gross premium receipts less premiums returned on canceled policy contracts and less dividends and
27 returns of unabsorbed premium deposits of all fire insurance companies is levied for this purpose, to be collected by the
28 director or his designee as other taxes on fire insurance companies are collected. The director or his designee shall keep
29 a separate account of all monies received and disbursed under the provisions of this section and shall include the
30 account in his annual report. Fifty percent of the one percent tax levied in this section must be directed to the Division
31 of Fire and Life Safety of the Department of Labor, Licensing and Regulation to be used only for expenses of this
32 division. For fiscal year 1997-98 only, the fifty percent of the tax levied by this section that is directed to the
33 Department of Labor, Licensing and Regulation is capped at $2,567,325. The department shall report annually to the
34 Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee where any
35 growth above the base authorization for the preceding is expended and for what purposes within the Division of Fire
36 and Life Safety."
37
38 B. This section takes effect July 1, 1997.