General Appropriations Bill H. 4700 for the fiscal year beginning July 1, 1998
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PART II PAGE 523 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 Laws of South 8 Carolina, 1976, and all supplements to the Code. 9 10 SECTION 2 11 12 DELETED 13 14 SECTION 3 15 16 TO AMEND CHAPTER 18 OF TITLE 59 OF THE 1976 CODE, RELATING TO QUALITY CONTROLS AND 17 PRODUCTIVITY REWARDS, SO AS TO ENACT THE SOUTH CAROLINA PERFORMANCE AND ACCOUNTABILITY 18 FOR EXCELLENCE IN TEACHING AND LEARNING (EXCEL) ACT, TO ESTABLISH GRADE SPECIFIC STATEWIDE 19 ACADEMIC STANDARDS FOR MATHEMATICS, ENGLISH/LANGUAGE ARTS, AND SCIENCE, TO ESTABLISH 20 CRITERIA FOR THE ASSESSMENT, EVALUATION, RATING, AND ACCREDITATION OF SCHOOL AND STUDENT 21 PERFORMANCE IN REFERENCE TO THE STATEWIDE ACADEMIC PERFORMANCE STANDARDS, AND TO 22 ESTABLISH AN OVERSIGHT COMMITTEE TO MONITOR THE IMPACT AND IMPLEMENTATION OF THE EXCEL 23 ACT; TO AMEND THE 1976 CODE BY ADDING SECTION 59-24-5 SO AS TO PROVIDE FOR LEGISLATIVE FINDINGS 24 IN REGARD TO SCHOOL ADMINISTRATORS; TO AMEND SECTIONS 59-24-10, 59-24-30, BOTH AS AMENDED, AND 25 59-24-50, RELATING TO ASSESSMENT OF AND DEVELOPMENT PLANS FOR SCHOOL ADMINISTRATORS, SO AS TO 26 FURTHER PROVIDE FOR SUCH ASSESSMENTS AND DEVELOPMENT PLANS; TO ADD SECTION 59-24-80 SO AS TO 27 PROVIDE FOR A FORMAL INTRODUCTION PROGRAM FOR FIRST-YEAR PRINCIPALS; TO AMEND SECTION 59-6-10, 28 RELATING TO THE SELECT COMMITTEE TO OVERSEE THE EIA, SO AS TO REVISE THE MEMBERSHIP OF THE 29 COMMITTEE, THE MANNER IN WHICH ITS MEMBERS ARE SELECTED, AND TO PROVIDE THAT IT SHALL ALSO 30 MONITOR THE EXCEL ACT; TO ADD SECTIONS 59-6-100, 59-6-110, AND 59-6-120 SO AS TO ESTABLISH AN 31 ACCOUNTABILITY DIVISION WITHIN THE SELECT COMMITTEE AND PROVIDE FOR ITS DUTIES, FUNCTIONS, AND 32 RESPONSIBILITIES; TO AMEND SECTION 59-29-10, RELATING TO REQUIRED SUBJECTS OF INSTRUCTION, SO AS 33 TO REQUIRE INSTRUCTION IN PHONICS; TO ADD SECTION 59-63-65 SO AS TO PROVIDE THAT SCHOOL DISTRICTS 34 WHICH CHOOSE TO REDUCE CLASS SIZE IN FULL-DAY KINDERGARTEN PROGRAMS AND IN GRADES ONE 35 THROUGH THREE SHALL BE ELIGIBLE FOR CERTAIN STATE FUNDING, AND TO PROVIDE FOR THE
PART II PAGE 524 1 IMPLEMENTATION OF THESE PROVISIONS; AND TO REPEAL SECTION 59-6-12 RELATING TO CERTAIN DUTIES 2 AND RESPONSIBILITIES OF THE SELECT COMMITTEE. 3 4 A. This section shall be known and may be cited as the "South Carolina Performance and Accountability for Excellence in Teaching and 5 Learning (EXCEL) Act". 6 7 B. Chapter 18, Title 59 of the 1976 Code, as added by Act 194 of 1989, is amended to read: 8 9 "CHAPTER 18 10 11 QUALITY CONTROLS; REWARDING PRODUCTIVITY 12 13 EXCEL ACT 14 15 Section 59-18-10. Beginning in school year 1985-86, an incentive grant fund program must be established by the State Board of 16 Education, acting through the State Department of Education, to reward schools and school districts for exceptional or improved 17 performance for criteria such as: (a) student achievement gain; (b) student attendance; (c) teacher attendance; (d) student attitudes toward 18 learning; (e) parent participation; and (f) any other factors promoting or maintaining high levels of achievement and performance. 19 School districts will be rewarded according to specific criteria established by the State Board of Education. 20 The State Board of Education shall establish procedures whereby area vocational centers are eligible to receive incentive grant funds 21 in 1986-87. Beginning with the 1987-88 school year, area vocational centers will be rewarded according to specific criteria established 22 by the State Board of Education. 23 No school, area vocational center, or school district is eligible for incentive grant funds unless the student achievement gain criterion 24 is met. 25 The incentive grant funds must be allocated on a per pupil basis. However, in order to be eligible to receive these funds, the schools 26 or school districts shall meet the criteria established by the State Board of Education. The State Board of Education shall promulgate 27 regulations that ensure that the districts of the State utilize these funds to improve or maintain exceptional performance in the schools 28 pursuant to the above criteria. 29 30 Section 59-18-11. By not later than the 1991-92 school year, reduction in dropout rates or maintenance of low dropout rates must 31 be included as an additional criterion in the school incentive reward program for rewarding secondary schools. By not later than the 32 1993-94 school year, the criteria schools must meet to qualify for a school incentive award and must include exceptional or improved 33 performance in higher order thinking and problem solving, provided that two annual statewide administrations of tests validated for this 34 purpose have been accomplished. 35
PART II PAGE 525 1 Section 59-18-15. Notwithstanding any other provision of law, a school is given the flexibility of receiving exemptions from those 2 regulations and statutory provisions governing the Defined Minimum Program, the Basic Skills Assessment Program, and the 3 Remedial/Compensatory Program, provided that, during a three-year period, the following criteria are satisfied: 4 (1) the school has twice been a recipient of a school incentive grant pursuant to Section 59-18-10; 5 (2) the school has met annual NCE gain requirements for reading and mathematics compensatory programs pursuant to Section 6 59-5-65; 7 (3) the school has exhibited no recurring accreditation deficiencies; and 8 (4) the school has annually exhibited a school gain index value at or above the state average as computed in the school incentive grant 9 program pursuant to Section 59-18-10. 10 Schools receiving flexibility status are released from those regulations and statutory provisions referred to above including, but not 11 limited to, regulations and statutory provisions on class scheduling, class structure, and staffing. The State Board of Education in 12 consultation with the Select Committee and the Business-Education Subcommittee must promulgate regulations and develop guidelines 13 for providing this flexibility by December 1, 1989. 14 To continue to receive flexibility pursuant to this section, a school must annually exhibit a school gain index value at or above the state 15 average as computed in the school incentive award program pursuant to Section 59-18-10 and must meet the NCE gains required for 16 reading and mathematics compensatory education program pursuant to Section 59-5-65. A school which does not requalify for flexibility 17 status due to extenuating circumstances may apply to the State Board of Education for an extension of this status for one year. 18 In the event that a school is removed from flexibility status, the school is not subject to regulations and statutory provisions exempted 19 under this section until the beginning of the school year following notification of the change in status by the State Department of Education. 20 Subsequent monitoring by the State Department of Education in a school that is removed from flexibility status shall not include a review 21 of program records exempted under this section for the period that the school has received flexibility status or for the school year during 22 which the school was notified of its removal from flexibility status. 23 24 Section 59-18-25. To provide support and training for teachers and principals in their efforts to design and implement innovative 25 programs, the Commission on Higher Education, in consultation with the State Board of Education and the Select Committee, shall 26 establish a "Center for the Advancement of Teaching and School Leadership" at a selected public college or university. The center shall 27 provide a program for school change consisting of intensive short term institutes for teams of teachers and administrators who are 28 committed to creating innovative programs in their schools. Priority assistance must be given to schools which have received grants to 29 implement innovative programs under Section 59-18-20. The program must be provided through the center working in conjunction with 30 other colleges and universities in various regions of the State. School teams shall work with center staff and consultants to analyze the 31 needs of the team's school and consider strategies to bring about meaningful change from within the school. School teams shall set goals 32 and analyze their roles and responsibilities in the change process. An evaluation component must be developed for each school with input 33 from the school team, the school district administration, center staff, and consultants in school effectiveness and change. After school teams 34 return to their schools, the center and cooperating colleges and universities shall provide on-site support and expertise as needed by school
PART II PAGE 526 1 teams. A portion of the funds for this program must be budgeted for on-site assistance to school teams by the center and cooperating 2 colleges and universities. 3 4 Section 59-18-30. Before January 1, 1985, the State Board of Education, in consultation with the Select Committee, shall develop 5 criteria for evaluating the quality of education in the school districts of the State. The criteria must include, but is not limited to: 6 (1) improvement of Statewide Testing Program (STP) and Basic Skills Assessment Program (BSAP) test results; 7 (2) dropout rate; 8 (3) accreditation deficiencies; and 9 (4) failure rate on the high school exit exam. 10 The State Board of Education shall develop regulations for the implementation of this section. 11 Prior to January 1, 1985, and by January 1 of each year thereafter, the State Department of Education shall apply the adopted criteria 12 to appropriate data collected for all school districts. 13 When the screening process indicates that all minimum criteria standards are met, the districts will be so notified by the Department 14 of Education. When the screening process indicates potential problems, technical assistance in resolving the potential problems will be 15 offered by the Department of Education. 16 When the screening process indicates that the quality of education in a given school district is seriously impaired, the State 17 Superintendent, with the approval of the State Board of Education shall appoint a Review Committee to study educational programs in 18 that district and identify factors affecting the impairment of quality and, no later than the end of the school year, make recommendations 19 to the State Board of Education for corrective action. Within 30 days thereafter the State Department of Education shall notify the 20 superintendent and district board of trustees of the recommendations approved by the State Board of Education. Such Review Committee 21 shall be composed of State Department of Education staff, representative(s) from selected school districts, representative(s) from higher 22 education, and one or more non-educator(s). 23 If the recommendations approved by the State Board of Education are not satisfactorily implemented by the school district within six 24 months after receiving the recommendations, the State Superintendent, with the approval of the State Board of Education, shall be granted 25 authority to do any of the following: 26 (1) Declare a state of emergency in the school district. Within 30 days thereafter, the State Superintendent shall present evidence as 27 to the state of emergency to a called, joint meeting of the Education Committee's of the House of Representatives and the Senate. The State 28 Superintendent of Education, the superintendent of the district concerned, and the Chairman of the Board of Trustees for the district shall 29 be required to testify along with such other witnesses as the Committees may desire to call. Upon conclusion of the testimony, the joint 30 Committees, by vote of a majority of those Committee members present and voting, may either concur or nonconcur in the finding of a 31 state of emergency. If a majority of the Committee members concur with the finding of a state of emergency, the State Superintendent of 32 Education may cause state funds for any or all programs under the South Carolina Education Improvement Act of 1984 to be escrowed 33 for the duration of the emergency with the understanding that he may thereafter release funds from escrow for any program which he 34 determines to have been restored to standard even though the state of emergency may not as yet be terminated for the district as a whole. 35 The state of emergency may be declared ended by vote of a majority of the members voting at a called joint meeting of the Education
PART II PAGE 527 1 Committees of the House and Senate and thereupon the escrowed funds may be released to the district during the next twelve-month period 2 as the State Superintendent may prescribe. 3 (2) Furnish continuing advice and technical assistance in implementing the aforementioned recommendations of the State Board of 4 Education. 5 (3) Recommend to the Governor that the office of superintendent be declared vacant. The Governor may thereupon so declare after 6 which the superintendent may furnish an interim replacement until the vacancy is filled by the board of trustees. 7 8 Section 59-18-31. By the 1993-94 school year, the State Board of Education, in consultation with the Select Committee, shall develop 9 additional criteria which must be used to evaluate the quality of education in the school districts. The additional criteria must include 10 measures of higher order thinking skills and problem solving, when two annual statewide administrations of tests validated for this purpose 11 have been accomplished. 12 13 Section 59-18-100. Declaration of Legislative Purpose. 14 The General Assembly finds that South Carolinians have the widespread conviction that public education is vital; it is vital because 15 it enriches the human spirit, advances our society and culture, and leads to better jobs. It is the purpose of the General Assembly in this 16 chapter to establish a performance based accountability system for public education which focuses on improving teaching and learning 17 so that students meet state academic standards. Accountability, as defined by this chapter, means responsibility for both improving student 18 performance and for taking the necessary actions to improve classroom practice and school performance. 19 The system is to: 20 (1) link the policies and criteria for performance standards, accreditation, reporting, school rewards, and targeted assistance; 21 (2) use school and district accreditation and reporting to stress academic performance and to maintain a focus on the search for better 22 ways to teach all students; 23 (3) provide an annual report card to furnish clear and specific information about school and district academic performance and other 24 performance to parents and the public; 25 (4) require all districts to establish local accountability systems to stimulate quality teaching and learning practices and to target 26 assistance to low performing schools; 27 (5) increase coordinated, quality technical assistance to districts; and 28 (6) expand the ability to evaluate the system and to conduct in-depth studies on implementation, efficiency, and the effectiveness of 29 academic improvement efforts. 30 31 Section 59-18-110. The State Board of Education is directed to adopt grade specific academic educational standards in the core 32 academic areas of mathematics, English/language arts, social studies (history, government, economics, and geography), and science and 33 for grades nine through twelve to adopt specific academic standards for benchmark courses in mathematics, English/language arts, social 34 studies, and science. The standards must be reflective of the highest level of academic skills with the rigor necessary to improve the 35 curriculum and instruction in South Carolina's schools.
PART II PAGE 528 1 Section 59-18-120. (A) Notwithstanding any other provision of law, the State Board of Education, through the Department of 2 Education, is directed to develop a statewide assessment program to measure student performance on state standards and: (a) identify areas 3 in which students need additional academic support; (b) indicate the academic achievement for schools, districts, and the State based on 4 the academic standards established by the State Board of Education; and (c) reduce additional assessments needed to satisfy federal 5 reporting requirements. The State Board of Education is directed to develop standards based end of course assessments for benchmark 6 courses in grades nine through twelve. 7 While this legislation calls for assessment in the specific areas mentioned above, this should not be interpreted in a manner that 8 diminishes the importance of foreign languages, visual and performing arts, health, physical education and career/occupational programs. 9 (B) After the first statewide field test of the assessment program in each of the four academic areas, and after the field tests of the end 10 of course assessments of benchmark courses, the Select Committee, established in Section 59-6-10, will undertake reviews of the state 11 assessment program and the course assessments for alignment with the state standards, level of difficulty and validity, and for the ability 12 to differentiate levels of achievement, and will make recommendations for needed changes. As a part of the review, a task force of parents, 13 business and industry persons, community leaders, and regular and special education educators must examine the assessment program and 14 course assessments to determine rigor and relevancy. The review will be provided to the State Board of Education and the State 15 Department of Education as soon as feasible after the field tests. The Department of Education will then report to the Select Committee 16 no later than one month after receiving the reports on the changes made to the assessments to comply with the recommendations. 17 (C) After review and approval by the Select Committee, the standards based assessment of mathematics, English/language arts, social 18 studies, and science will be administered to all public school students to include those students as required by the 1997 reauthorization 19 of the Federal Individuals with Disabilities Education Act and by Title 1 at the end of grades three through eight. The exit examination 20 in these four academic areas will be administered at the end of grade ten. A standards based assessment will be developed for grades one 21 and two for use by schools and districts as deemed appropriate by the local district officials. For students with documented disabilities, 22 the assessments developed by the Department of Education shall include the appropriate modifications and accommodations with necessary 23 supplemental devices as outlined in a student's Individualized Education Program and as stated in the Administrative Guidelines and 24 Procedures for Testing Students with Documented Disabilities. After review and approval by the Select Committee, the end of course 25 assessments of benchmark courses will be administered to all public school students as they complete each benchmark course. 26 (D) The State Board of Education, through the State Department of Education, shall adopt or adapt a first grade readiness test which 27 is linked to the adopted grade one academic standards. The first administration of this test must occur no later than the 2000-2001 school 28 year. The purpose of the test is to measure individual student readiness and it is not to be used as an accountability measure at the state 29 level. 30 (E) All assessments required to be developed or adopted under the provisions of this section or chapter must be objective and reliable. 31 An objective and reliable statewide assessment' means assessments which yield consistent results and which measure the cognitive 32 knowledge and skills specified in the state-approved academic standards and does not include questions relative to personal opinions, 33 feelings, or attitudes and is not biased with regard to race, gender, or socioeconomic status. It is not intended that the assessments be 34 limited to true/false or multiple choice questions.
PART II PAGE 529 1 Section 59-18-130. The State Board of Education must establish a cyclical review by academic area of the state standards and the 2 statewide assessment program and the assessment of benchmark courses to ensure that the standards and assessments are maintaining high 3 expectations for teaching and learning. As a part of the review, a task force of parents, business and industry persons, community leaders, 4 and educators must examine the assessment system to determine rigor and relevancy. At a minimum, each academic area should be 5 reviewed and updated every four years. After each academic area is reviewed, a report on the recommendations of the task force and on 6 the changes to be made to maintain high standards must be presented to the Select Committee for its consideration. After approval by the 7 Select Committee, the recommendations may be implemented. 8 9 Section 59-18-140. The State Board of Education, following the recommendations of the Accountability Division of the Select 10 Committee, established in Section 59-6-40, and working with the Department of Education, is directed to select a norm referenced test 11 to obtain an indication of student and school performance relative to national performance levels. The test shall be administered to a 12 statistically valid random sample of students only as the division considers necessary to evaluate the accountability system. Norm 13 referenced testing undertaken at the state level may not be used for individual diagnostic purposes. 14 15 Section 59-18-150. The Department of Education is directed to provide the assessment results on individual students and schools in 16 a manner and format that is easily understood by parents and the public. In addition, the school assessment results must be presented in 17 a format easily understood by the faculty and in a manner that is useful for curriculum review and instructional improvement. The school 18 assessment is to include information on the performance of subgroups of students within the school. The department must work with the 19 Division of Accountability in developing the formats of the assessment results. 20 21 Section 59-18-155. The criteria governing the adoption of instructional materials shall be revised by the State Board of Education 22 to require that the content of such materials must reflect the substance and level of performance outlined in the grade specific educational 23 standards adopted by the state board. 24 25 Section 59-18-160. (A) By November 1999, the State Board of Education, working with the Department of Education, must 26 promulgate regulations based on recommendations of the Accountability Division which outline the criteria to be used in the school 27 accreditation system which is based on: 28 (1) student academic performance standards; 29 (2) other student performance indicators and school progress in meeting district and school goals and objectives; and 30 (3) implementation of state policies and initiatives. 31 Student academic performance will be given the greatest weight in determining the level of accreditation to be awarded a school. 32 (B) The criteria to establish academic performance standards must examine the actual performance level of the school and evaluate 33 the rate of improvement over time in meeting the state's standards. The State Board of Education shall promulgate regulations establishing 34 a rating system which must be developed with five levels specified so that school performance is clearly characterized in language that 35 parents and the public understand.
PART II PAGE 530 1 (C) Student performance indicators will be those considered useful for assessing a school's performance and appropriate for the grade 2 levels within the school. Dropout rate must be included in the indicators. In setting the standards for the academic standards and the 3 performance indicators, consideration must be given to performance by subgroups of students in the school. In establishing the criteria 4 to be used, longitudinally matched student data and measures using schools similar in student characteristics must be considered. The 5 performance standards and criteria must use established guidelines for statistical analysis and build on current data-reporting practices. 6 The review of progress in meeting school and district goals and standards will build on those outlined in the school and district strategic 7 plans. Not later than November 2000, the State Board of Education, based on recommendations of the division and working with the 8 Department of Education, must define the process to be followed for uniform collection of data. 9 (D) By November 2000, baseline standards must be established and beginning with November 2001, annually, five levels for 10 accreditation must be defined, with schools to be designated as successful, proficient, acceptable, on notice, and challenged based on the 11 criteria established by the state board. The State Board of Education shall promulgate regulations establishing an accreditation system 12 for vocational centers and school districts similar to that developed for the school accreditation system. 13 (E) The criteria, standards setting, and baseline standards for the accreditation system must be reviewed by the Select Committee prior 14 to their establishment by the State Board of Education. 15 (F) Until the assessment and performance standards required by this chapter are developed, the current program of testing and 16 assessments including BSAP testing shall continue to be used through the 1998-99 school year. 17 18 Section 59-18-170. Annual reporting of performance and accreditation. 19 (A) An annual report card on schools must provide consistent reporting of performance for the individual elementary, middle, and high 20 schools and vocational centers of the State. The school's rating on the academic performance standards must be emphasized and the 21 accreditation designation, and information on its significance for the school and the district must also be reported. A similar report card 22 for school districts must also be developed. 23 (B) The report card must include information on comparisons, trends, needs, and performance over time which is helpful to parents 24 and the public in evaluating the school. This information should also provide a context for the performance of the school. The report card 25 should include information in such areas as programs and curriculum, school leadership, community and parent support, and faculty 26 qualifications. Where appropriate, the data should yield disaggregated results when such a breakdown of particulars would provide 27 information to schools and districts in planning for improvement. In addition, the report card must provide information on the disciplinary 28 climate in the school. 29 (C) The principal, in conjunction with the School Improvement Council, established in Section 59-20-60, must write an annual 30 narrative of a school's progress in order to further inform parents and the community about the school and its operation. The school's report 31 card must be furnished to parents and the public no later than November fifteenth. 32 (D) Beginning in 2001 and annually thereafter, the Department of Education must issue the report cards to the individual schools and 33 districts no later than November first. The format of the annual reports on schools and districts must be determined by the Accountability 34 Division, working with the Department of Education. Special efforts are to be made to ensure that the information contained in the report
PART II PAGE 531 1 cards is provided in an easily understood manner and a reader friendly format. The proposed format must be reviewed by the staffs of the 2 Senate and House Education committees and the Select Committee. 3 (E) No later than June 1, 1999, the Accountability Division must report on the development of the accreditation system criteria and 4 the report card to the Select Committee and the State Board of Education. A second report, to include uniform collection procedures for 5 academic standards and performance indicators, is due by September 1, 1999. By September 1, 2000, a report on the development of 6 baseline data for the schools is due. 7 (F) Charter schools established pursuant to Title 59, Chapter 40 will receive a performance rating and must issue a report card to 8 parents and the public containing the rating and explaining its significance and providing other information similar to that required of other 9 schools in this section. Alternative schools are included in the requirements of this chapter, however, the purpose of such schools must 10 be taken into consideration in determining their performance rating and accreditation designation. 11 12 Section 59-18-180. Recognition program for schools for exceptional or improved performance. 13 The State Board of Education, working with the division and the Department of Education, must establish the Palmetto Platinum, Gold, 14 Silver, and Bronze Awards Program to recognize and reward schools for academic achievement. Schools attaining high levels of absolute 15 performance will be given a Platinum or Gold Award. Schools attaining high rates of improvement shall be given the Silver or Bronze 16 Award. The award program must base performance on matched student data and must include such additional criteria as: (a) student 17 attendance; (b) teacher attendance; (c) student dropout rates; and (d) any other factors promoting or maintaining high levels of achievement 18 and performance. 19 Schools and vocational centers must be rewarded according to specific criteria established by the state board in consultation with the 20 division. In defining eligibility for a reward for high levels of performance, student performance at all levels of achievement must 21 demonstrate improvement. 22 The State Board of Education must develop regulations that ensure that the schools and vocational centers of the State utilize these 23 reward funds to improve or maintain exceptional performance according to their school plans established in Section 59-139-10, including 24 professional development support. 25 Special schools for the academically talented are not eligible to receive an award pursuant to the provisions of this section unless they 26 have demonstrated improvement and high actual achievement for three years immediately preceding. 27 28 Section 59-18-190. Exemptions from certain requirements for exceptional performance. 29 (A) Notwithstanding any other provision of law, a school is given the flexibility of receiving exemptions from those regulations and 30 statutory provisions governing the Defined Minimum Program provided that, during a three-year period, the following criteria are satisfied: 31 (1) the school has twice been a recipient of a Palmetto Platinum, Gold, Silver, or Bronze Award, pursuant to Section 59-18-180; 32 (2) the school has met annual improvement standards for subgroups of students in reading and mathematics; and 33 (3) the school has exhibited no recurring accreditation deficiencies. 34 (B) Schools receiving flexibility status are released from those regulations and statutory provisions referred to above including, but 35 not limited to, regulations and statutory provisions on class scheduling, class structure, and staffing. The State Board of Education in
PART II PAGE 532 1 consultation with the Select Committee must promulgate regulations and develop guidelines for providing this flexibility by December 2 1, 2001. 3 (C) To continue to receive flexibility pursuant to this section, a school must annually exhibit school improvement at or above the state 4 average as computed in the school recognition program pursuant to Section 59-18-180 and must meet the gains required for subgroups 5 of students in reading and mathematics. A school which does not requalify for flexibility status due to extenuating circumstances may apply 6 to the State Board of Education for an extension of this status for one year. 7 (D) In the event that a school is removed from flexibility status, the school is not subject to regulations and statutory provisions 8 exempted under this section until the beginning of the school year following notification of the change in status by the State Department 9 of Education. Subsequent monitoring by the State Department of Education in a school that is removed from flexibility status shall not 10 include a review of program records exempted under this section for the period that the school has received flexibility status or for the 11 school year during which the school was notified of its removal from flexibility status. 12 13 Section 59-18-195. Notwithstanding any other provision of law, a school designated as on notice or challenged while in such status 14 is given the flexibility of receiving exemptions from those regulations and statutory provisions governing the Defined Minimum Program 15 or other State Board of Education regulations, dealing with the core academic areas established in Section 59-18-110, provided that the 16 school's revised plan explains why such exemptions are expected to improve the academic performance of the students and the plan meets 17 the criteria pursuant to Section 59-18-260. 18 19 Section 59-18-200. District Accountability Systems. 20 The State Board of Education, based on recommendations of the division and working with the Department of Education, must develop 21 regulations requiring that no later than August 1999, each school district, or consortium of school districts, must establish a performance 22 based accountability system, or modify its existing accountability system, to reinforce the state accountability system. Parents, teachers, 23 and principals must be involved in the development of the accountability system established by the district. Principals should be actively 24 involved in the selection, discipline, and dismissal of personnel in their particular school. The purpose of the district system is to stimulate 25 constant improvement in the process of teaching and learning in each school and to target additional local assistance for a school when 26 its students' performance is low or shows little improvement. The district accountability system must build on the district and school 27 activities and plans required in Section 59-139-10 and, therefore, the date the school improvement reports must be provided to parents is 28 changed to February first. Until such time as regulations pursuant to this section become effective, school district accountability systems 29 must be developed, adopted, and implemented in accordance with State Board of Education guidelines. 30 31 Section 59-18-210. Actions to be taken when a school is designated on notice' or challenged'. 32 (A) When a school receives an accreditation designation of on notice' or challenged', the following actions must be undertaken by 33 the school, the district, and the board of trustees: 34 (1) The faculty of the school with the leadership of the principal must review its improvement plan and revise it with the assistance 35 of the school improvement council established in Section 59-20-60. The revised plan should look at every aspect of schooling, and must
PART II PAGE 533 1 outline activities that, when implemented, can reasonably be expected to improve student performance and increase the rate of student 2 progress. The plan should provide a clear, coherent plan for professional development, which has been designed by the faculty, that is 3 ongoing, job related, and keyed to improving teaching and learning. A time line for implementation of the activities and the goals to be 4 achieved must be included. 5 (2) Once the revised plan is developed, the district superintendent is to identify the strategies the district will use to help the school 6 implement the improvement activities identified in the revised plan. 7 (3) The district board of trustees must review and approve the plan and delineate the support which the district will give the plan. 8 (4) After the approval of the revised plan, the principal's and teachers' professional growth plans, as required by Section 59-26-40 9 and Section 59-24-40, shall be reviewed and amended to reflect the professional development needs identified and establish individual 10 improvement criteria on the performance dimensions for the next evaluation. 11 (5) The school must inform the parents of children attending the school of the accreditation designation received from the State 12 Board of Education and must outline the steps in the revised plan to improve performance, including the support which the board of trustees 13 has agreed to give the plan. This information must go to the parents no later than February first and is to be provided annually until a 14 school has received the accreditation designation of acceptable' or above. 15 (B) The Department of Education must review the school's revised plan to ensure it contains sufficiently high standards and 16 expectations of improvement. Should the department determine that the plan, the district's strategies for assistance, or the time lines and 17 goals require further consideration, technical assistance must be provided the school, the district, and the local board of trustees in the areas 18 found to need changes. Upon a review of the revised plan by the Department of Education, the department is to delineate the activities, 19 support, services, and technical assistance it will provide to support the school's plan and sustain improvement over time. Schools meeting 20 the criteria established pursuant to Section 59-18-260 will be eligible for the grant programs created by that section. 21 22 Section 59-18-220. Additional actions to be taken when a school is designated as challenged'. 23 (A) When a school receives an accreditation designation of challenged' or when a low-performing school requests it, an external 24 review committee of at least three members must be assigned by the Department of Education to examine school and district educational 25 programs, actions, and activities. The activities of the external review committee may: 26 (1) examine all facets of school operations, focusing on strengths and weaknesses, to develop recommendations for improving 27 student performance with emphasis on needed changes in the classroom; 28 (2) work with school staff, central offices, and local boards of trustees in the design of the district's plan and implementation 29 strategies that can reasonably be expected to improve student performance and increase the rate of student progress in that school; 30 (3) identify needed support from the district, the State Department of Education, and other sources; 31 (4) identify personnel changes, if any, that are needed at the school and/or district level and discuss such findings with the board; 32 (5) report its recommendations, no later than three months after the school receives the designation of challenged', to the school, 33 the district board of trustees, and the State Board of Education; and 34 (6) report annually over the next four years, or as deemed necessary by the state board, on the district's and school's progress in 35 implementing the plans and recommendations and in improving student performance to the local board of trustees and the state board.
PART II PAGE 534 1 (B) The external review committee shall be selected from representatives from selected school districts, respected retired educators, 2 State Department of Education staff, and higher education representatives. 3 (C) The Department of Education must review the recommendations of the external review committee, the district plan, and the 4 school's revised plan to ensure it contains sufficiently high standards and expectations of improvement. Within thirty days, the Department 5 of Education must notify the principal, the superintendent, and the district board of trustees of the recommendations approved by the State 6 Board of Education. Upon the approval of the recommendations and the plans, the Department of Education is to delineate the activities, 7 support services, and technical assistance it will provide to support the district's and school's activities. This assistance will continue for 8 at least three years, or as determined to be needed by the review committee to sustain improvement, with the approval of the state board. 9 (D) If the recommendations approved by the state board, the district's plan, or the school's revised plan are not satisfactorily 10 implemented by the challenged' school and its school district according to the time line developed by the State Board of Education or 11 if student academic performance has not met expected progress, the principal, district superintendent, and members of the board of trustees 12 must appear before the State Board of Education to outline the reasons why a state of emergency should not be declared in the school. 13 The State Superintendent, after consulting with the external review committee and with the approval of the State Board of Education, shall 14 be granted the authority to take any of the following actions: 15 (1) furnish continuing advice and technical assistance in implementing the recommendations of the State Board of Education; 16 (2) declare a state of emergency in the school and replace the school's principal; or 17 (3) declare a state of emergency in the school and assume management of the school. 18 19 Section 59-18-230. Specialist on site for schools challenged'. 20 A Specialist on Site must be assigned to a school designated as challenged', if the review committee so recommends and is approved 21 by the State Board of Education. The specialist will assist the school in gaining knowledge of best practices and well-validated alternatives, 22 demonstrate effective teaching, act as coach for improving classroom practices, and give support and training to identify critical questions 23 regarding school improvement and professional development. The specialist assigned to the school must have expertise in an area 24 identified as a weakness by the assessment or the review committee. The specialist will work with the school faculty on a regular basis 25 throughout the school year and for up to two years, or as recommended by the review committee and approved by the state board, in order 26 to sustain improvement. 27 The Department of Education, in consultation with the division, shall develop a program for selecting and training exceptional 28 educators to serve as specialists on site. Retired educators may be considered for specialists. School districts are asked to cooperate in 29 releasing employees for full-time or part-time employment as a Specialist on Site. To encourage and recruit teachers for assignment to 30 on notice and challenged schools, those assigned to such schools will receive their salary and a supplement equal to fifty percent of the 31 current southeastern average teacher salary as projected by the State Budget and Control Board, Office of Research and Analysis; the salary 32 and supplement is to be paid by the State. 33 The Department of Education, in consultation with the division, shall develop a program for selecting and training exceptional 34 principals to serve as Principal Specialists on Site. Retired educators may be considered for Principal Specialists. A Principal Specialist 35 may be assigned to a school designated as challenged', if the review committee so recommends and is approved by the State Board of
PART II PAGE 535 1 Education. The Principal Specialist will assist the school in gaining knowledge of best practices and well-validated alternatives, 2 demonstrate effective leadership for improving classroom practices, assist in the analyses of assessment data; and give support to identify 3 critical questions regarding school improvement and professional development. To encourage and recruit principals for assignment to on 4 notice and challenged schools, those assigned to such schools will receive their salary and a supplement equal to 1.25 times the supplement 5 amount calculated for teachers; the salary and supplement are to be paid by the State. 6 The supplements are to be considered part of the regular salary base for which retirement contributions are deductible by the South 7 Carolina Retirement System pursuant to Section 9-1-1020. For the purpose of determining average final compensation as defined in 8 Section 9-1-10, the supplement authorized in this section shall entitle a specialist to have added to their average final compensation at the 9 time of retirement an amount not to exceed an additional forty-five days' pay, based on the specialist's regular annual compensation at 10 their home school location. A specialist shall be entitled to fifteen days' pay, for the purposes of this section, for each year of service as 11 a specialist on site. Principal and Teacher Specialists on Site who are assigned to on notice or challenged schools shall be allowed to return 12 to employment with their previous district at the end of the contract period with the same teaching or administrative contract status as when 13 they left but without assurance as to the school or supplemental position to which they may be assigned. 14 For retired educators drawing benefits from the State Retirement System who are serving in the capacity of Principal or Teacher 15 Specialist on Site, the earnings limitations which restrict the amount of compensation that may be earned from covered employment while 16 drawing benefits under the State Retirement System do not apply to any compensation paid to them as an on-site specialist. However, no 17 further contributions may be made to the State Retirement System related to this compensation and no additional retirement benefits or 18 credits may be received or accrued. 19 20 Section 59-18-240. Certification credit for participation in professional development related to on notice' or challenged' schools. 21 Each teacher employed in schools designated as on notice' or challenged' who participate in the professional development activities 22 and the improvement actions of the school which go beyond the normal school day and year may earn credits toward recertification 23 according to the criteria established by the State Board of Education. To receive credit, the activities must include at least one of the 24 following: 25 (1) summer institute with follow-up activities; 26 (2) practice of new teaching strategies with peers regularly throughout the school year; 27 (3) work with peer study groups during the academic year in planning lessons; and 28 (4) observing and coaching regularly in one another's classrooms. 29 The activities must be approved by the Department of Education and the department shall determine the amount of credit earned by 30 the participation. 31 32 Section 59-18-250. Formal mentoring program for principals of schools on notice' or challenged'. 33 Each principal employed in schools designated as on notice' or challenged' must participate in a formal mentoring program with 34 a principal. The Department of Education shall design the mentoring program and provide a stipend to those principals serving as mentors. 35
PART II PAGE 536 1 Section 59-18-260. Grants to schools designated as on notice' or challenged'. 2 The State Board of Education, working with the Accountability Division and the Department of Education, must establish grant 3 programs for schools designated as on notice' and for schools designated as challenged'. A school designated as on notice' will qualify 4 for a grant to undertake any needed retraining of school faculty and administration once the revised plan is determined by the State 5 Department of Education to meet the criteria on standards and activities. A school designated as challenged' will qualify for the grant 6 program after the State Board of Education approves its revised plan. A grant or a portion of a grant may be renewed annually over the 7 next three years, if school and district actions to implement the revised plan continue. Should student performance not improve, prior to 8 renewing the grant, the revised plan must be reviewed by the district and board of trustees and the State Department of Education to 9 determine what other actions, if any, need to be taken. A grant may be extended for up to an additional two years, if the State Board of 10 Education determines it is needed to sustain academic improvement. The funds must be expended based on the revised plan and according 11 to criteria established by the State Board of Education. Prior to extending any grant, the Accountability Division shall review school 12 performance in the wise use of the previously awarded grant funds. If deficient use is determined, those deficiencies must be identified, 13 noted, and corrective action taken before a grant extension will be given. 14 The State Board of Education, working with the Department of Education and with the approval of the Select Committee, will develop 15 guidelines outlining eligibility for the grant programs and methods of distributing funds which will be in effect until such time as the 16 accreditation designations in Section 59-18-160 are implemented. In developing the eligibility guidelines, the board should consider 17 criteria similar to that used in the impaired district program, Section 59-18-30, in effect in 1997. Until such time as regulations are 18 promulgated, the funds shall be distributed on a per teacher basis for use only as outlined in the revised school plan. 19 20 Section 59-18-270. Actions to be taken when a school district is designated as on notice'. 21 (A) When a district receives an accreditation designation of on notice', the State Superintendent, with the approval of the State Board 22 of Education shall appoint an external review committee to study educational programs in that district and identify factors affecting the 23 performance of the district. The review committee must: 24 (1) examine all facets of school and district operations to develop recommendations for improving student performance; 25 (2) work with schools' staffs, central offices, and local boards of trustees in the design and implementation of a plan that can 26 reasonably be expected to improve student performance and increase the rate of student progress; 27 (3) identify personnel changes, if any, that are needed at the school and/or district level and discuss such findings with the board 28 of trustees; 29 (4) identify needed support from the Department of Education and other sources; and 30 (5) report its recommendations, no later than three months after the district receives the designation of on notice', to the district 31 board of trustees and the State Board of Education. 32 (B) Within thirty days the Department of Education must notify the superintendent and the district board of trustees of the 33 recommendations approved by the State Board of Education. Upon the approval of the recommendations, the Department of Education 34 must delineate the activities, support services, and technical assistance it will provide to support the recommendations and sustain 35 improvement over time. The external review committee must report annually over the next four years, or as deemed necessary by the state
PART II PAGE 537 1 board, on the district's progress in implementing the recommendations and improving student performance to the local board of trustees 2 and the state board. 3 (C) The review committee shall be composed of State Department of Education staff and representatives from selected school districts, 4 higher education, and business. 5 (D) If the recommendations approved by the State Board of Education are not satisfactorily implemented by the school district 6 according to the time line developed by the State Board of Education or if student performance has not made the expected progress and 7 the school district is designated as challenged', the district superintendent and members of the board of trustees must appear before the 8 State Board of Education to outline the reasons why a state of emergency should not be declared in the district. The State Superintendent, 9 with the approval of the State Board of Education, is granted authority to do any of the following: 10 (1) furnish continuing advice and technical assistance in implementing the recommendations of the State Board of Education; 11 (2) recommend to the Governor that the office of superintendent be declared vacant. If the Governor declares the office vacant, 12 the State Superintendent may furnish an interim replacement until the vacancy is filled by the board of trustees or until an election is held 13 as provided by law to fill the vacancy if the superintendent who is replaced is elected to such office. Local boards of trustees negotiating 14 contracts for the superintendency shall include a provision that the contract is void should the Governor declare that office of 15 superintendency vacant pursuant to this section. This contract provision does not apply to any existing contracts but to new contracts or 16 renewal of contracts; 17 (3) declare a state of emergency in the school district and assume management of the school district. 18 19 Section 59-18-280. State technical assistance to schools and districts. 20 To assist schools and school districts as they work to improve classroom practice and student performance, the Department of 21 Education must increase the delivery of quality technical assistance services and the assessment of instructional programs. The department 22 may need to reshape some of its organization and key functions to make them more consistent with the assistance required by schools and 23 districts in developing and implementing local accountability systems and meeting state standards. The Department of Education must: 24 (1) establish an on-going peer review process for school and district plans, including district and school accountability systems to 25 ensure the plans contain strategies that can reasonably be expected to improve student performance and increase the rate of student 26 progress; 27 (2) establish an on-going state mechanism to promote successful programs found in South Carolina schools for implementation in 28 schools with similar needs and students, to review evidence on instructional and organizational practices considered to be effective, and 29 to alert schools and classroom teachers to these options and the sources of training and names of implementing schools; 30 (3) provide information and technical assistance in understanding state policies, how they fit together, and the best practice in 31 implementing them; and 32 (4) establish a process for monitoring information provided for accreditation and for assessing improvement efforts and 33 implementation of state laws and policies which focuses on meeting the intent and purpose of those laws and policies. 34 35 Section 59-18-290. Regional service centers established.
PART II PAGE 538 1 (A) To increase the delivery of quality technical assistance and professional development, the State Board of Education, working with 2 the Select Committee and the Department of Education, shall establish multi-school district regional centers for learning, teaching, and 3 school leadership. The purpose of the centers is to foster and sustain improvement over time by providing coordinated support and 4 sustained, intensive training for teachers and principals that is based on the specific needs of those schools and school districts included 5 in the centers and on the educational priorities of the State. 6 (B) There shall be no more than thirteen regional centers established across the State. In forming the centers, the State Board of 7 Education must take into consideration the existing boundaries of the Math and Science Hubs; however, the state board must also take 8 into consideration the boundaries and memberships of existing voluntary district consortia and must consult with the school districts. 9 Where existing consortia agree, the regional centers must be merged into the existing consortia structures. When the regional center is 10 merged into an existing consortium structure, the support provided by the individual school districts to that consortium must continue at 11 least at the same level as prior to the merger. However, those groups of districts which have boundaries of the Math and Science Hubs 12 and the Tech Prep Consortium that coincide may petition the State Board of Education to become a regional center and that petition must 13 be granted. Each regional center shall have as its governing board the district superintendents who shall serve as the designees of their 14 respective boards of trustees from the school districts to be served by the regional center and at least one business and industry 15 representative from each school district elected by the members of the Tech Prep executive board. 16 (C) These centers are empowered to hire a director and receive state, local, and federal funds that have been assigned to the centers 17 by the member school districts and are also empowered to spend those funds on behalf of the districts assigning those funds. The centers 18 are eligible to receive and expend funds from state and federal governments, school districts, and other public or private sources. Such 19 funds shall be reported in the same manner as that required of school districts. Center employees, who shall be hired by the director with 20 the approval of the governing board, shall be considered state employees for the purposes of retirement and fringe benefits. 21 (D) Each regional center will provide coordinated curriculum development and instructional planning assistance, professional 22 development which meets national standards for delivery, leadership training, assistance with implementation of teacher and principal 23 evaluations, and such other services as needed and desired by the schools and school districts within the center. The funding of the 24 realigned Math and Science Hubs and the Tech Prep Consortia shall continue to be used for the purposes set forth by federal requirements 25 and the various state plans guiding the hubs and consortia; however, the hubs' and Tech Prep Consortia's activities must be coordinated 26 with one another and with the needs and activities of the districts within the regional center in accordance with the directives of the center's 27 governing board. The federal requirements for the various advisory boards will be observed. In addition, the centers will serve as 28 technology service areas for technology training, assistance, and information. Each school district within its consortium is entitled to 29 participate in those programs offered by the consortium but no district is required to participate in any service. 30 (E) With the approval of the consortium governing board, the State Department of Education may assign agency personnel to that 31 consortium. The centers may work in conjunction with consultants and faculty from universities in the State. The technical colleges must 32 continue to work as partners in Tech Prep with the regional centers in which they are located and with the school districts in that regional 33 center. 34 (F) The State Board of Education, working with the Select Committee and the Department of Education, must develop such policies 35 and regulations as may be needed for the proper administration of the regional centers. However, any policies and regulations should
PART II PAGE 539 1 preserve the independence of the regional centers and their boards. The Department of Education must consider reshaping its organization 2 to focus its technical assistance and service delivery through the regional centers. 3 (G) Five years after the establishment of the centers, the division must evaluate their effectiveness. The purpose of the evaluation is 4 to determine the effectiveness of the centers in providing training and technical assistance to the state's schools and school districts and 5 to ensure that each regional center is responsive to the needs of the schools and districts it serves. 6 7 Section 59-18-400. An on-going public information campaign must be established to apprise the public of the status of the public 8 schools and the importance of high standards for academic performance for the public school students of South Carolina, not only for the 9 future of the individual student but for the future of all our citizens. A special committee appointed by the Select Committee, and working 10 with it, representing business, industry, and education shall plan and oversee development of the campaign, including public service 11 announcements for the media and such other avenues as deemed appropriate for informing the public. Private individuals and groups are 12 asked to contribute to this endeavor. The Select Committee, established in Section 59-6-10, may accept such donations and grants; for 13 every two dollars donated by private individuals or groups for this purpose, the State shall contribute one dollar, from the state general 14 fund, up to five hundred thousand dollars. All such funds so received by the Select Committee must be used by the committee for its 15 appropriate purposes provided by law. 16 17 Section 59-18-500. The State Board of Education, working with the Department of Education and the Select Committee, shall 18 promulgate regulations to fund no more than forty-six alternative schools, one in each county. Districts are authorized and encouraged 19 to cooperate in funding the alternative school. These schools must be at a site separate from other schools, unless operated at a time when 20 those schools are not in session. These schools shall provide appropriate services to middle or high school students who for academic or 21 behavioral reasons are not benefiting from the regular school program. The regulations must include guidelines to ensure that effective 22 practices are adopted. 23 To be eligible for funding the school district(s) must develop a plan for the school which establishes a comprehensive program to 24 address student problems. State requirements for staffing may be waived if the plan meets the criteria and has a reasonable expectation 25 of success. The plan must include: 26 (1) the mission of the school; 27 (2) policy for the basis of enrollment in the school; 28 (3) a low pupil-teacher ratio, to include one-on-one assistance, independent computer assisted learning and distance learning; 29 (4) provision for transportation to the school; 30 (5) establishment of comprehensive staff development; 31 (6) appointment of a mentor teacher at the student's original school in order to ease transition back to that school should such a 32 transfer occur; and 33 (7) a process for community involvement and support. 34 The district(s) shall contract with the school for each student attending for an amount that is no less than the amount equal to that 35 generated by the student's EFA weight. Base funding for the alternative school shall be provided as available from the General Assembly.
PART II PAGE 540 1 Section 59-18-600. The Department of Education, in consultation with the division, shall develop a program to provide a supplemental 2 salary to teachers in the core academic areas defined in Section 59-18-110, who are selected to teach in schools designated as on notice 3 or challenged beginning with school year 2000-2001. The supplement will be equal to twenty percent of the southeastern average 4 teachers' salary and the funding will be distributed per eligible teacher by experience and degree obtained and on the EFA formula. The 5 supplements are to be considered part of the regular salary base for which retirement contributions are deductible by the South Carolina 6 Retirement System pursuant to Section 9-1-1020. For the purpose of determining average final compensation as defined in Section 9-1-10, 7 the supplement authorized in this section shall entitle a specialist to have added to their average final compensation at the time of retirement 8 an amount not to exceed an additional forty-five days' pay, based on the specialist's regular annual compensation at their home school 9 location. A specialist shall be entitled to fifteen days' pay, for the purposes of this section, for each year of service as a specialist on site. 10 11 Section 59-18-700. The State Board of Education shall establish grant programs to fund homework centers in schools and districts 12 designated as on notice or challenged. Schools and districts receiving such designations must provide centers where students can come 13 and receive assistance in understanding and completing their school work. For homework centers meeting the criteria established by the 14 board, funds will be provided as appropriated by the General Assembly. 15 16 Section 59-18-800. The State Board of Education, through the Department of Education, shall establish a grant program to encourage 17 school districts to pilot test or implement a modified school year schedule. The purpose of the grant is to assist with the additional costs 18 incurred during the intersessions for salaries, transportation, and operations. For a district to qualify for a grant, all the schools within a 19 specific feeder zone or elementary-to-middle-to-high school attendance area, must be pilot testing or implementing the modified schedule. 20 21 Section 59-18-810. To obtain a grant, a district shall submit an application to the state board in a format specified by the Department 22 of Education. The application shall include a plan for implementing a modified year calendar that provides the following: more time for 23 student learning, learning opportunities that typically are not available in the regular student day, targeted assistance for students whose 24 academic performance is significantly below promotion standards, more efficient use of facilities and other resources, and evaluations of 25 the impact of the modified schedule. Local district boards of trustees shall require students whose performance in a core subject area such 26 as English/ language arts, science, mathematics, or social studies is rated to be the equivalent of a D' average or below to attend the 27 intersessions and receive special assistance in the subject area and must outline other options the student must meet in order to qualify 28 for promotion should the student not attend the intersession as required. Funding for the program is as provided by the General Assembly 29 in the annual appropriations act. Each grant award for program pilot testing or implementation may not exceed a three-year period." 30 31 C. The State Board of Education, working with the Department of Education, must review the regulations regarding professional 32 development and revise them so they promote the use of state dollars for training which meets national standards for staff development. 33
PART II PAGE 541 1 D. The Accountability Division must conduct a review of the current organization and structure for state assisted programs and policies 2 for professional development. The review is to take into consideration the research on effective programs and to recommend better ways 3 to provide and meet the needs for professional development, including the use of the five contract days for in service. 4 5 E. Article 1, Chapter 24, Title 59 of the 1976 Code is amended by adding: 6 7 "Section 59-24-5. Legislative Findings. 8 The General Assembly finds that the leadership of the principal is key to the success of a school, and support for ongoing, integrated 9 professional development is integral to better schools and to the improvement of the actual work of teachers and school staff." 10 11 F. Sections 59-24-10 and 59-24-30 of 1976 Code, both as amended by Act 458 of 1996, are further amended to read: 12 13 "Section 59-24-10. Beginning with the school year 1996-97 1999-2000, any person appointed who is under consideration for 14 appointment as a principal for any elementary school, secondary school, or vocational center must be assessed for instructional leadership 15 and management capabilities by the Assessment Center Leadership Academy of the South Carolina Department of Education and a 16 personal professional development plan constructed on the basis of that assessment prior to or within one year of the date such appointment 17 is made. A report of this assessment must be forwarded to the district superintendent. The provisions of this section do not apply to any 18 persons currently employed as principals on the effective date of the provisions of this paragraph nor to any persons hired as principals 19 before the beginning of school year 1996-97 1999-2000. 20 . 21 Section 59-24-30. All school administrators shall develop annually or update an on-going individual professional development plan 22 with annual updates which is appropriate for their role or position. This plan shall support both their individual growth and organizational 23 needs. Organizational needs must be defined by the districts' strategic plans or school renewal plans. The Department of Education shall 24 assist school administrators in carrying out their professional development plans by reviewing the school and district plans and providing 25 or brokering programs and services in the area of areas identified for professional development." 26 27 G. Section 59-24-50 of the 1976 Code is amended to read: 28 29 "Section 59-24-50. The By January 1, 1999, the South Carolina Department of Education's Leadership Academy shall develop, in 30 cooperation with school districts, district consortia, and state-supported institutions of higher education, new training programs and expand 31 current training programs available to present and prospective school administrators with particular emphasis on effective instructional 32 leadership continuous professional development programs which meet national standards for professional development and focus on the 33 improvement of teaching and learning. By July 1, 1999, programs funded with state funds must meet these standards and must provide 34 training, modeling, and coaching By January 1, 1990, these training programs must include an emphasis on effective instructional 35 leadership as it pertains to instructional leadership and school-based improvement, including instruction on the importance of school
PART II PAGE 542 1 improvement councils and ways administrators may make school improvement councils an active force in school improvement. The 2 training must be developed and conducted in collaboration with the School Council Assistance Project." 3 4 H. Article 1, Chapter 24, Title 59 of the 1976 Code is amended by adding: 5 6 "Section 59-24-80. Formal induction program for first year principals. 7 Beginning with school year 1999-2000, each school district, or consortium of school districts, shall provide school principals serving 8 for the first time as building administrators with a formalized induction program in cooperation with the State Department of Education. 9 The State Board of Education must develop regulations for the program based on the criteria and statewide performance standards which 10 are a part of the process for assisting, developing, and evaluating principals employed in the school districts. The program must include 11 an emphasis on the elements of instructional leadership skills, implementation of effective schools research, and analysis of test scores 12 for curricular improvement." 13 14 I. Section 59-6-10 of the 1976 Code is amended to read: 15 16 "Section 59-6-10. Oversight Committee. 17 In order to assist in, recommend, and supervise implementation of programs and expenditure of funds for the Performance and 18 Accountability for Excellence in Teaching and Learning (Excel) Act and the Education Improvement Act of 1984 there is created a the 19 Select Committee is to serve as the oversight committee for the act these acts. The Select Committee shall: 20 (1) review and monitor the implementation and evaluation of Excel and Education Improvement Act programs and funding; 21 (2) make programmatic and funding recommendations to the General Assembly; 22 (3) report annually to the General Assembly on the progress of the programs; 23 (4) recommend Excel Act and EIA program changes to state agencies and other entities as it considers necessary. 24 Each state agency and entity responsible for implementing the Performance and Accountability for Excellence in Teaching and 25 Learning Act and the Education Improvement Act funded programs shall submit annually to the Select Committee programs and 26 expenditure reports and budget requests as needed and in a manner prescribed by the Select Committee. 27 The committee consists of the following persons: 28 (1) Speaker of the House of Representatives or his designee and a member of the House of Representatives appointed by the Speaker; 29 (2) Lieutenant Governor President Pro Tempore or his designee and a member of the Senate appointed by the Lieutenant Governor 30 President Pro Tempore; 31 (3) Chairman of the Education and Public Works Committee of the House of Representatives or his designee; 32 (4) Chairman of the Education Committee of the Senate or his designee; 33 (5) State Superintendent of Education or his designee; 34 (6) Chairman of the Commission on Higher Education or his designee; 35 (7 5) Governor or his designee and a member appointed by the Governor;
PART II PAGE 543 1 (8 6) Chairman of the Ways and Means Committee of the House of Representatives or his designee; 2 (9 7) Chairman of the Finance Committee of the Senate or his designee; 3 (8) Four members representing business and industry who must have experience in business, management, or policy to be appointed 4 as follows: two by the Governor, one by the Chairman of the Senate Education Committee, and one by the Chairman of the House 5 Education and Public Works Committee; 6 (9) Four members representing education who shall be the State Teacher of the Year and the State Principal of the Year from the prior 7 two school years. The principal membership shall rotate among the elementary and high school principals of the year. 8 A member of the General Assembly shall serve as chairman. Any new appointees to the committee must be made no later than July 9 1, 1998. 10 Members of the committee shall meet no less than once a quarter and annually shall submit their findings and recommendations to 11 the General Assembly before March first of each fiscal year. The committee shall hire administrative staff as necessary to carry out its 12 functions." 13 14 J. Chapter 6, Title 59 of the 1976 Code is amended by adding: 15 16 "Section 59-6-100. Establishment of division for monitoring. 17 Within the Select Committee, an Accountability Division must be established to report on the monitoring, development, and 18 implementation of the performance based accountability system and reviewing and evaluating all aspects of the Excel Act. A 19 subcommittee of seven members of the Select Committee (the four members representing business and industry, one appointed by the 20 Governor from the members of the committee, and two appointed by the chairman, one from the members appointed from the Senate and 21 one from the members appointed from the House of Representatives) will serve to advise and coordinate on a regular basis the work of 22 the Accountability Division. The subcommittee must elect its chair from one of the business and industry representatives. The division 23 will provide information, recommendations, and an assessment of the Excel Act to the Select Committee annually. 24 The division will employ, by a majority vote of the subcommittee, for a contract term of three years an executive director for the 25 Accountability Division. The director must be chosen solely on grounds of fitness to perform the duties assigned to him and must possess 26 at least the following qualifications: a demonstrated knowledge of public education, experience in program evaluation, and experience 27 in a responsible managerial capacity. No member of the General Assembly nor anyone who will have been a member for one year 28 previously will be contracted to serve as director. The director will have the authority to employ, with the approval of the subcommittee, 29 professional and support staff as necessary to carry out the duties of the division, which shall be separate from the administrative staff of 30 the Select Committee. 31 32 Section 59-6-110. The division must examine the public education accountability system and the EIA to ensure that the system and 33 its components and the EIA programs are functioning for the enhancement of student learning. The division will recommend the repeal 34 or modification of statutes, policies, and rules that deter school improvement. The division must provide biannually its findings and 35 recommendations in a report to the Select Committee no later than February first. The division is to expand the ability to evaluate the
PART II PAGE 544 1 system and to conduct in-depth studies on implementation, efficiency, and the effectiveness of academic improvement efforts as they relate 2 to Excel and submit reports containing its findings and recommendations, as needed, to the Select Committee. 3 The responsibilities of the division do not include fiscal audit functions or funding recommendations except as they relate to 4 accountability. It is not a function of this division to draft legislation and neither the director nor any other employee of the division shall 5 urge or oppose any legislation. 6 In the performance of it duties and responsibilities, the division and staff members are subject to the statutory provisions and penalties 7 regarding confidentiality of records as they apply to schools, school districts, the Department of Education, and the Board of Education. 8 9 Section 59-6-120. For the purposes of carrying out its duties and responsibilities, the Accountability Division shall have access to 10 the records and facilities of the Department of Education, the State Board of Education, and the school districts and schools during regular 11 operating hours. The division may call on the facilities and expertise of the state institutions of higher learning and any other tax supported 12 agencies for use by the division in carrying out its functions and may coordinate and consult with existing agency and legislative staff." 13 14 K. When parents are involved with their children's education, students achieve more, regardless of socio-economic status, ethnic/racial 15 background, or the parents' education level. The more extensive the parent involvement, the higher level of the student achievement. 16 Therefore, the Select Committee shall appoint a task force to review current state programs and policies for parent participation in their 17 children's education. The task force is to look for ways to encourage and induce parents to oversee and support student academic 18 performance and behavior that contributes to academic improvement. The membership of the task force should include: public school 19 educators from rural, urban, and suburban schools and districts; parents of public school children; social service representatives; and a 20 juvenile justice representative. The task force must be appointed no later than September 1, 1998, and shall provide its report and 21 recommendations to the Select Committee by October 15, 1999. 22 23 L. The Select Committee will study the foundation program, which has not been changed since 1973, review the cost of providing the 24 base student program, and the weights used to recognize the relative costs associated with providing services to pupils participating in 25 different educational programs. As a part of the study, the Select Committee will examine the cost of providing alternative schools and 26 recommend an appropriate weighting to be included in the Education Finance Act for students served in these schools. The committee 27 shall report it findings to the General Assembly no later than September 1, 1999. 28 29 M. Section 59-29-10 of the 1976 Code is amended to read: 30 31 "Section 59-29-10. The county board of education and the board of trustees for each school district shall see that in every school under 32 their care there shall be taught, as far as practicable, orthography, reading, writing, arithmetic, geography, English grammar and instruction 33 in phonics, the elements of agriculture, the history of the United States and of this State, the principles of the Constitutions of the United 34 States and of this State, morals and good behavior, algebra, physiology and hygiene (especially as to the effects of alcoholic liquors and 35 narcotics upon the human system), English literature, and such other branches as the state board may from time to time direct."
PART II PAGE 545 1 N. Title 59, Chapter 63 of the 1976 Code is amended by adding: 2 "Section 59-63-65. School districts which choose to reduce class size to fifteen to one in full-day kindergarten programs and in grades 3 one through three shall be eligible for funding for the reduced pupil-teacher ratios from funds provided by the General Assembly for this 4 purpose. Local match is required for the lower ratio funding based on the Education Finance Act formula. Boards of trustees of each 5 school district may implement the lower pupil-teacher ratios on a school by school basis. 6 Funding for the lower pupil ratios shall be provided as follows: 7 (1) beginning with school year 1998-99, for kindergarten; 8 (2) beginning with school year 1999-2000, for grade one; 9 (3) beginning with school year 2000-2001, for grade two; 10 (4) beginning with school year 2001-2002, for grade three. 11 The pupil-teacher ratio in this section shall be based on average daily membership in each grade; however, it is the intent of the General 12 Assembly that this ratio be implemented as much as possible on a school and class basis. District boards of trustees implementing the 13 reduced ratios on a school by school basis shall establish policies to give priority to reduce the ratios in schools with the highest number 14 of students eligible for the federal free and reduced lunch program, and these students shall be given priority in implementing the reduced 15 class size. Unobligated funds from state appropriations which become available to a district during a fiscal year shall be redistributed to 16 fund additional teachers on a prorated basis. 17 School districts which are certified by the State Board of Education as unable to implement the reduced class size due to the lack of 18 available facilities shall be eligible for funding for an aide for classes in kindergarten through grade three in which the pupil-teacher ratio 19 exceeds twenty-two pupils in average daily membership. Funding for aides will be available only for school years 1998-99 and 1999-2000 20 on the same basis as that for the reduced ratio. School district boards of trustees choosing to implement the use of aides must provide an 21 on-going program of staff development for the aides. State funds for classroom aides must be used to supplement existing aides and may 22 not supplant current local support for aides. 23 As used in this section, 'teacher' refers to an employee possessing a professional certificate issued by the State Department of Education 24 whose full time responsibility is instruction of students." 25 26 O. Any additional expense created by programs or actions required by the State to comply with this section must be paid for by the State 27 on the EFA formula, if the state board, working with the Department of Education, has reviewed the cost and certified that it is accurate 28 and due to compliance with this section. 29 30 P. Sections 59-6-12 of the 1976 Code is repealed. 31 32 Q. The Department of Education must provide a copy of this section to every district superintendent and school principal in this State. 33
PART II PAGE 546 1 R. The catch line headings, or captions, which immediately follow the section designations, or those that immediately precede a section, 2 are for informational purposes only and must not be used to construe the sections more broadly or narrowly than the text of the sections 3 would indicate. The catch lines, or captions, are not part of the law. 4 5 S. This section takes effect upon approval by the Governor. 6 7 SECTION 4 8 9 TO AMEND SECTION 59-35-10, AS AMENDED, OF THE 1976 CODE, RELATING TO KINDERGARTEN CLASSES WITHIN 10 EACH SCHOOL DISTRICT OF THIS STATE, SO AS TO PROVIDE THAT FULL-DAY FIVE-YEAR-OLD KINDERGARTEN 11 MUST BE PROVIDED TO ANY ELIGIBLE CHILD WHOSE PARENTS DESIRE FOR THEM TO ATTEND THAT 12 KINDERGARTEN PROGRAM, AND TO PROVIDE FOR A WAIVER OF THE ABOVE REQUIREMENTS UNDER CERTAIN 13 CONDITIONS. 14 15 Section 59-35-10 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read: 16 17 "Section 59-35-10. The board of trustees of each school district shall establish and provide kindergartens for children within its 18 jurisdiction. All children in the five-year-old kindergarten program must be counted in the average daily membership of any public school 19 district when public school funds are to be apportioned to the several school districts. State aid for the five-year-old kindergarten program 20 must be distributed through the formula provided for in the Education Finance Act' (Act 163 of 1977). 21 Beginning with school year 1996-97 1998-99, school districts which choose to offer an extended-day five-year-old kindergarten 22 program shall offer an extended day five-year old kindergarten program to all requesting parents and shall be eligible for funding for the 23 extended day equal to the EFA weight for a child attending a half-day five-year-old kindergarten program as funds are made available from 24 the General Assembly. Local match is required for the extended-day funding. Local boards of trustees shall establish policies regarding 25 priority of service in the extended-day program. The State Board of Education may waive the full-day kindergarten requirement for a 26 particular school district on an annual basis upon application of the district if the board finds the school district does not have available 27 space and the cost of temporary classroom space cannot be justified. 28 Parents of children who are eligible to attend the extended-day five-year-old kindergarten may elect the half-day program for their 29 children. Parents intending to enroll their eligible children in a full-day kindergarten program must notify the district by January thirty-first 30 of the year of the anticipated enrollment date, except that such notice for the 1996-97 school year only must be provided by July 15, 1996. 31 Parents moving into the district after the notification date may apply for full-day kindergarten, and the district shall enroll such child in 32 its full-day program on a space available basis. Any parent or guardian of a child eligible for kindergarten may elect for their child or ward 33 not to attend kindergarten pursuant to Section 59-65-10." 34 35
PART II PAGE 547 1 SECTION 5 2 3 TO AMEND THE 1976 CODE BY ADDING SECTION 59-123-125 SO AS TO PROVIDE FOR THE MANNER IN WHICH 4 FUNDS APPROPRIATED TO THE MEDICAL UNIVERSITY OF SOUTH CAROLINA FOR THE "RURAL PHYSICIAN 5 PROGRAM" SHALL BE ADMINISTERED, MANAGED, AND ALLOCATED. 6 7 A. The 1976 Code is amended by adding: 8 9 "Section 59-123-125. The funds appropriated to the Medical University of South Carolina for the Rural Physician Program' shall 10 be administered by the South Carolina Area Health Education Consortium physician recruitment office. The Medical University of South 11 Carolina shall be responsible for the fiscal management of funds to ensure that state policies and guidelines are adhered to. A board is 12 hereby created to manage and allocate these funds in the best interests of the citizens of South Carolina. The board shall be composed of 13 the following: the Executive Director, or his designee, of the South Carolina Primary Care Association; the Dean, or his designee, of the 14 University of South Carolina School of Medicine; the Executive Director, or his designee, of the South Carolina Medical Association; two 15 representatives from rural health care settings, one to be appointed by the Chairman of the Senate Medical Affairs Committee and one to 16 be appointed by the Chairman of the House Medical, Military, Public and Municipal Affairs Committee; the Commissioner, or his 17 designee, of the Department of Health and Environmental Control; the Commissioner, or his designee, of the South Carolina Hospital 18 Association; the Commissioner, or his designee, of the Commission on Higher Education; and the Director, or his designee, of the 19 Department of Health and Human Services. The Chairman, with the concurrence of the board shall appoint three at-large members with 20 two representing nursing and one representing allied health services in South Carolina." 21 22 B. This section takes effect upon approval by the Governor. 23 24 SECTION 6 25 26 TO AMEND THE 1976 CODE BY ADDING SECTION 59-123-115 SO AS TO PROVIDE FOR THE MANNER IN WHICH THE 27 SOUTH CAROLINA AREA HEALTH EDUCATION CONSORTIUM SHALL BE AWARDED FUNDING FOR CERTAIN 28 PROGRAMS. 29 30 A. The 1976 Code is amended by adding: 31 32 "Section 59-123-115. The South Carolina Area Health Education Consortium shall be awarded funding for the Statewide Family 33 Practice Residency System, the Graduate Doctor Education Program, and the Area Health Education Center Program based on the 34 appropriate formula, as approved by the Area Health Education Consortium and the Commission on Higher Education, and the funding 35 methodology shall be applied in a manner consistent with that of other state institutions of higher learning."
PART II PAGE 548 1 B. This section takes effect upon approval by the Governor. 2 3 SECTION 7 4 5 DELETED 6 7 SECTION 8 8 9 TO AMEND THE 1976 CODE BY ADDING SECTION 59-113-45 SO AS TO PROVIDE THAT SOUTH CAROLINA TUITION 10 GRANT FUNDS SHALL BE DISBURSED TO ELIGIBLE STUDENTS ON A SEMESTER-BY-SEMESTER BASIS, AND TO 11 PROVIDE FOR THE MANNER IN WHICH INTEREST ACCRUING ON THE BALANCE OF UNDISBURSED TUITION 12 GRANT FUNDS SHALL BE CALCULATED AND AWARDED. 13 14 A. The 1976 Code is amended by adding: 15 16 "Section 59-113-45. South Carolina Tuition Grant funds shall be disbursed to eligible students on a semester-by-semester basis. 17 Interest accruing on the balance of undisbursed tuition grant funds on deposit with the State Treasurer's office from September fifteenth 18 through December thirty-first shall be calculated by the State Treasurer's office and transferred within thirty days to the South Carolina 19 Tuition Grant Commission to be awarded as tuition grants to eligible students." 20 21 B. This section takes effect upon approval by the Governor. 22 23 SECTION 9 24 25 TO AMEND THE 1976 CODE BY ADDING SECTION 59-101-410 SO AS TO PROVIDE THAT THE GOVERNING BOARDS 26 OF STATE-SUPPORTED COLLEGES, UNIVERSITIES, AND TECHNICAL SCHOOLS MAY LEND THEIR ENDOWMENT 27 FUNDS AND AUXILIARY ENTERPRISE FUNDS TO SEPARATELY CHARTERED NOT-FOR-PROFIT LEGAL ENTITIES 28 WHOSE EXISTENCE IS PRIMARILY TO PROVIDE FINANCIAL ASSISTANCE AND OTHER SUPPORT TO THE 29 INSTITUTION AND ITS EDUCATIONAL PROGRAM, AND TO PROVIDE THE CONDITIONS UNDER WHICH THE FUNDS 30 MAY BE LOANED. 31 32 A. The 1976 Code is amended by adding: 33 34 "Section 59-101-410. (A) As used in this section, auxiliary enterprise funds' means athletics revenues and funds derived from 35 bookstore, licensing, vending, concessions, and food service operations.
PART II PAGE 549 1 (B) The governing boards of all state-supported colleges, universities, and technical schools may lend from time to time their 2 endowment funds and auxiliary enterprise funds, including interest derived therefrom, currently on deposit with the State Treasurer's Office 3 to separately chartered not-for-profit legal entities whose existence is primarily providing financial assistance and other support to the 4 institution and its educational program. The governing boards of all state-supported colleges, universities, and technical schools also may 5 lend from time to time their future endowment funds and auxiliary enterprise funds received, including interest derived therefrom, currently 6 on deposit with the State Treasurer's Office to separately chartered not-for-profit legal entities whose existence is primarily to provide 7 financial assistance and other support to the institution and its educational program, provided however, that all of these funds must first 8 be recorded with the State Treasurer's Office. Income from the loan of auxiliary funds as provided in this section must be used solely for 9 scholarship purposes. The loans must be in accordance with such terms and conditions as determined by the respective institution's 10 governing body." 11 12 B. This section takes effect July 1, 1998. 13 14 SECTION 10 15 16 TO AMEND SECTION 59-53-53, AS AMENDED, OF THE 1976 CODE, RELATING TO BORROWING BY AREA 17 COMMISSIONS OF TECHNICAL COLLEGES AND THE MANNER IN WHICH THESE AREA COMMISSIONS ARE 18 AUTHORIZED TO DISPOSE OF SURPLUS REAL PROPERTY, SO AS TO REVISE THE MANNER IN WHICH AND 19 PROCEDURES UNDER WHICH SURPLUS REAL PROPERTY MAY BE DISPOSED OF BY TECHNICAL COLLEGES; AND 20 TO AMEND SECTION 59-101-180, RELATING TO THE SALES AND DISPOSAL OF REAL PROPERTY BY 21 STATE-SUPPORTED INSTITUTIONS OF HIGHER LEARNING, SO AS TO REVISE THE MANNER IN WHICH AND 22 PROCEDURES UNDER WHICH SURPLUS REAL PROPERTY MAY BE DISPOSED OF BY THESE INSTITUTIONS. 23 24 A. Section 59-53-53 of the 1976 Code, as last amended by Act 676 of 1988, is further amended to read: 25 26 "Section 59-53-53. (A) The area commission of any technical education institution under the jurisdiction of the South Carolina 27 technical education system may borrow for capital improvements from a federal or other lending agency an amount not to exceed its ability 28 to repay the loan through the imposition of a special fee. The terms of the loan may not exceed forty years. An area commission may issue 29 covenants, enter into mortgages, and grant liens limiting the sale or use of certain parcels of real or personal property in its possession when 30 required as a condition of accepting a grant, loan, or donation for specified capital improvement projects. Local area commissions may 31 dispose of real property that is surplus to their needs upon prior approval of the State Board for Technical and Comprehensive Education, 32 the Budget and Control Board, and the Joint Bond Review Committee. Proceeds from the sale of such property must be deposited in the 33 capital improvement account and expended by the local institution in accordance with all applicable state and other laws.
PART II PAGE 550 1 To amortize the loan, a special fee must be imposed within the limits established by the state board, the proceeds of which must be 2 deposited in a special account to be used for payment of the loan in accordance with the terms negotiated by the commission and the lender. 3 No funds other than the revenue from the special fee may be pledged for payment of the loan. 4 (B) The governing body for each technical college shall review the real property titled in the name of its institution to determine if 5 such property is in excess of the institution's anticipated needs and is available for disposal. All real properties determined to be in excess 6 may be disposed of with the approval of the State Board for Technical and Comprehensive Education, the Budget and Control Board, and 7 the Joint Bond Review Committee. The proceeds of such sales are to be disposed of as follows: 8 (1) if the property was acquired by gift, or through tuition, student fees, county funds, or earned income, the proceeds may be 9 retained by the selling institution for use in accord with established needs; 10 (2) if the property was acquired through state appropriations, state capital improvement bonds, or formula funds, the proceeds 11 shall revert to the state general fund. The responsibility for providing any necessary documentation including , but not limited to, 12 documenting the fund source of any real property proposed for sale rests with each respective institution. 13 14 B. Section 59-101-180 of the 1976 Code is amended to read: 15 "Section 59-101-180. Any institution of higher learning supported in whole or in part by the State shall have the power to sell and 16 dispose of any of its real estate other than buildings with the consent of two thirds of the members of the board of trustees. 17 The governing body for each state-support college and university shall review the real property titled in the name of its institution to 18 determine if such property is in excess of the institution's anticipated needs and is available for disposal. All real properties determined 19 to be in excess may be disposed of with the approval of the Budget and Control Board and the governing body for the college or university. 20 The proceeds of such sales are to be disposed of as follows: 21 (1) if the property was acquired as a gift, or through tuition, student fees or earned income, the proceeds may be retained by the 22 selling institution for use in accord with established needs; 23 (2) if the property was acquired through state appropriations, state capital improvement bonds, or formula funds, the proceeds 24 shall revert to the state general fund. The responsibility for providing any necessary documentation including , but not limited to, 25 documenting the fund source of any real property proposed for sale rests with each respective institution." 26 27 C. This section takes effect upon approval by the Governor. 28 29 SECTION 11 30 31 DELETED 32 33 34 35
PART II PAGE 551 1 SECTION 12 2 3 TO AMEND CHAPTER 65, TITLE 2, OF THE 1976 CODE, RELATING TO THE SOUTH CAROLINA FEDERAL AND 4 OTHER FUNDS OVERSIGHT ACT, SO AS TO DEVOLVE THE FUNCTIONS OF THE GOVERNOR UNDER THE ACT TO 5 THE BUDGET AND CONTROL BOARD, ELIMINATE THE REQUIREMENT THAT THE STATE BUDGET AND CONTROL 6 BOARD SHALL FOLLOW THE RECOMMENDATIONS OF THE GOVERNOR WITH RESPECT TO THE APPLICATION 7 OF THE ACT, AND TO MAKE GRAMMATICAL AND OTHER TECHNICAL CHANGES. 8 9 A. Chapter 65, Title 2 of the 1976 Code is amended to read: 10 11 "CHAPTER 65 12 13 South Carolina Federal and Other Funds Oversight Act 14 15 Section 2-65-10. This chapter may be cited as The South Carolina Federal and Other Funds Oversight Act'. 16 Section 2-65-15. As used in this chapter: 17 (1) Appropriations act' means the annual general appropriations act. 18 (a)(2) Agency' means any state office, department, institution, board, commission, council, committee, or other entity of 19 the executive, judicial, or legislative branch. 20 (b)(3) Block grant' means federal funds distributed to the State in accordance with a statutory formula for use in a variety 21 of activities within a broad functional area. 22 (4) Board' means the State Budget and Control Board. 23 (c)(5) Federal funds' means financial assistance made to a state agency by the United States Government in any form, 24 including, but not limited to, a grant, loan, subsidy, reimbursement, contract, donation, or shared federal revenues, or noncash federal 25 assistance in the form of equipment, buildings, and land. Financial assistance which originates with the U. S. United States Government, 26 but which is received by a state agency from another state or local agency in any form, is considered federal funds'. 27 (d)(6) Indirect costs' means those costs of supportive services within an agency or provided by another agency which benefit 28 more than one program and which may be charged to federal programs in accordance with Office Management and Budget Circular A-87 29 or A-21. 30 (e)(7) Matching funds' means a specific amount of general fund monies identified by a state agency, and required by the 31 federal government, as a cash contribution for a federal program. 32 (f)(8) Other funds' means any revenues received by an agency which are not federal funds and are not general funds 33 appropriated by the General Assembly in the annual General Appropriation Act appropriations act.
PART II PAGE 552 1 (g)(9) Research grant' means an award of funds from the United States Government or other entity for the principal purpose 2 of systematic study and investigation undertaken to discover or establish facts or principles. The principal purpose of a research grant' 3 is not to provide services to the public or to the employees or clients thereof. 4 (h)(10) Major federal program' means a program which: 5 (1)(a) represents a transfer of program responsibility from the federal to the state level; 6 (2)(b) is available to the State on a noncompetitive basis; 7 (3)(c) is financially significant in relation to its proportion of the administering agency's budget. 8 Any new block grant or any form of federal turnback program is considered a major federal program'. 9 10 Section 2-65-20. The General Assembly shall appropriate all anticipated federal and other funds for the operations of state 11 agencies in the annual General Appropriation Act appropriations act and must include any conditions on the expenditure of these funds 12 as part of the General Appropriation Act appropriations act, consistent with federal laws and regulations. Increases in project amounts 13 as appropriated in the act must be authorized in accordance with procedures set forth in Section 2-65-40, consistent with policies as 14 provided in the annual General Appropriation Act appropriations act and other applicable laws and regulations. 15 (a)(1) All agencies must shall provide to the State Budget and Control board, as part of their budget submissions, detailed 16 statements of the sources of all federal and other funds contained in their budgets. 17 (b)(2) All state agencies must shall submit programmatic and financial information for each federal project to the Governor 18 board in a manner prescribed by the Governor board. The information must be submitted in a timely manner so as to permit review of 19 the projects as part of the budget process. 20 (c)(3) The Governor's Office board shall provide to the Ways and Means Committee and the Senate Finance Committee 21 at appropriate times during the budget review process its recommendations on all federal projects. 22 (d)(4) The appropriation of federal funds must be decreased to the extent that receipts from these sources do not meet the 23 estimates reflected in each section of the General Appropriation Act appropriations act. 24 (e)(5) With the exception of funds defined as exempt' in Section 2-65-100, no agency may receive or spend federal or other 25 funds that are not authorized in the annual General Appropriation Act appropriations act, but unanticipated federal or other funds may be 26 received and spent upon authorization pursuant to Section 2-65-30 or 2-65-40, as applicable. 27 28 Section 2-65-30. (a)(A) A state agency may receive and spend unanticipated federal funds, and funds from private foundations 29 or industries, which are not included in the General Appropriation Act appropriations act, but state agencies must submit expenditure 30 proposals to the Governor board before submission of the proposal to the grantor agency; and further provided, that the state agency shall 31 receive authorization of from the Governor board before receipt and expenditure of funds. No authorization shall must be made without 32 first securing and considering the Governor's board's recommendation on each expenditure proposal. Any such authorization is subject 33 to all of the following standards: 34 (1) The unanticipated nature of the project precluded it from consideration and approval as part of the state appropriations 35 process as described in Section 2-65-20.
PART II PAGE 553 1 (2) The project assists the applicant state agency to achieve objectives or goals in keeping with the recognized powers and 2 functions of the state agency. 3 (3) The applicant state agency is the appropriate entity to conduct project activities and no duplication of services is created 4 by the authorization. 5 (4) State matching funds, if required, are available within the existing resources of the applicant state agency. 6 (5) The project benefits the health or welfare of the people of the State. 7 (b)(B) Notwithstanding any other provisions of this chapter, no authorization of unanticipated federal or private foundation or 8 industry funds may involve a commitment of future legislative enactment to provide additional state funds to support the project. 9 (c)(C) The Governor must board shall provide the House Ways and Means Committee and the Senate Finance Committee with 10 periodic reports which describe actions taken under the provisions of this section. 11 (d)(D) Notwithstanding any other provisions of this chapter, a state agency may not implement an unanticipated major federal 12 program without prior approval of the General Assembly, except: 13 (1) that to the extent that the unanticipated program replaces existing services currently provided by a state agency, other 14 governmental entity, private nonprofit organization, or other service provider, the services may be authorized by the Governor board to 15 continue at an equivalent level, within the constraints of federal law and funding, until the General Assembly acts.; 16 (2) In the event if the unanticipated program creates services not currently provided, and the Governor board agrees that 17 delayed implementation would result in a significant loss of federal funds to the State, the program may be authorized by the Governor 18 board to proceed at a minimal level, until such time as the General Assembly may act. 19 20 Section 2-65-40. (a)(A) A state agency may spend other' funds above the amount in the General Appropriation Act 21 appropriations act and increases in anticipated federal programs if the expenditure of the funds receives the prior authorization of the 22 Governor board. 23 (b)(B) Authorizations under this section are subject to the following standards, as applicable: 24 (1) the proposed use of the funds do not result in a fund of surplus money which may be used by the agency to expand 25 programs without legislative approval; 26 (2) if the funds are earmarked for specific use in the General Appropriation Act appropriations act, or by federal law or 27 regulation, any additional funds must be used for the same purpose; 28 (3) if the increase results from a fee or charge for service, the agency has the legal authority to impose the fee, and has secured 29 any approvals required by applicable law or regulations; 30 (4) the proposed use of funds assists the state agency to achieve objectives or goals in keeping with the recognized powers 31 and functions of the state agency; 32 (5) if the funds are generated from a new revenue source: 33 (i)(a) the proposed use of funds covers only a minimum amount of administrative costs necessary to support the revenue 34 collection, and any excess must be remitted to the general fund of the State;
PART II PAGE 554 1 (ii)(b) it is determined that the requesting state agency is the appropriate entity to carry out the proposed activities and 2 no duplication of services is created by the authorization; 3 (6) if the increase in federal funds requires a corresponding increase in state matching funds, the state match is available from 4 existing resources. 5 (c)(C) The Governor must board shall provide the House Ways and Means Committee and the Senate Finance Committee 6 with periodic reports which describe actions taken under the provisions of this section. 7 8 Section 2-65-50. Agencies must include estimates of research and student aid funds in the detailed budget statements required 9 in Section 2-65-20(a) (1) of this chapter. Agencies may not be required to submit the detailed programmatic and financial information 10 required in Section 2-65-20(b)(2) of this chapter, except that the agencies must furnish to the Governor board notices of actual awards and 11 allocations of research and student aid funds within fourteen days of receipt of such the notices from funding agencies. The Governor must 12 board shall maintain quarterly reports of the funds received by the agency, and must, upon request, provide copies thereof to the House 13 Ways and Means Committee or the Senate Finance Committee, or both. 14 15 Section 2-65-60. The Comptroller General must account for and control expenditures of individual federally funded projects 16 for all agencies using the Statewide Accounting and Reporting System. For continuing federal projects, the Governor must board shall 17 certify to the Comptroller General the actual funds approved for each project pursuant to Section 2-65-20 of this chapter, and any further 18 adjustments to this amount, based on grant award documentation and pursuant to Section 2-65-40 of this chapter. For new federally funded 19 projects, the Governor must board shall inform the Comptroller General of funding levels authorized pursuant to Section 2-65-30 of this 20 chapter. 21 The Comptroller General shall authorize expenditures on each project not to exceed the amount certified by the Governor board. 22 Upon request of the Governor, the Budget and Control Board, board, the House Ways and Means Committee, or the Senate Finance 23 Committee, the Comptroller General must shall provide periodic reports of authorization levels, expenditures, revenues, and other data 24 related to such the federal projects. Upon request of the Governor the Budget and Control Board, board, the House Ways and Means 25 Committee, or the Senate Finance Committee, state agencies must shall provide grant award and related actual funding information. 26 27 Section 2-65-70. (a)(A) All agencies receiving federal grants or contracts must shall recover the maximum allowable indirect 28 costs on those projects, subject to applicable federal laws and regulations. All indirect cost recoveries shall must be credited to the general 29 fund of the State, with the exception of recoveries from research and student aid grants and contracts. 30 (1) Each agency receiving grants or contracts to which indirect costs may be charged must have an approved indirect cost 31 rate or cost allocation plan. Agencies must shall prepare the indirect cost proposals and submit them to the Governor board for review. 32 The Governor must board shall submit the proposals to the appropriate federal agencies, negotiate the agreements, and transmit approved 33 agreements to the state agencies. The Governor board, upon request, must also shall provide a report on the proposals to the House Ways 34 and Means Committee or the Senate Finance Committee, or both.
PART II PAGE 555 1 (2) The Governor board annually shall prepare annually the Statewide Cost Allocation Plan for allocation of central service 2 costs to federal and other programs. The Governor must board shall ensure that state agencies recover costs approved in the plan through 3 federal grants and contracts, subject to federal laws and regulations. 4 (3) The Budget and Control Board and the State Comptroller General must shall assist the Governor board in ensuring 5 compliance with this section. 6 (b)(B) If it is determined to be in the best interest of the State and the agency receiving the federal funds, the requirements of 7 this section may be waived; except that indirect cost waivers may not be granted for unanticipated federal projects authorized pursuant 8 to Section 2-65-30 of this chapter. Requests for indirect cost waivers for continuing federal projects must be made by the applicant agency 9 as a part of its budget request and must be reviewed in accordance with the provisions of Section 2-65-20 of this chapter. 10 11 Section 2-65-80. (a)(A) The General Assembly shall designate through the annual General Appropriation Act appropriations 12 act an agency to operate each block grant. Should If a new block grant be is approved by the United States Congress after the annual 13 General Appropriation Act appropriations act has been approved, it must be approved in accordance with the provisions of Section 14 2-65-30(d) (D) of this chapter. 15 (b)(B) The Governor must agency operating each block grant shall conduct public hearings for those block grants for which 16 federal laws and regulations require legislative public hearings, and any other block grants for which legislative public hearings are deemed 17 considered necessary. Public comments must be taken into consideration by the Governor board in review and authorization of federal 18 funds according to the procedures set forth in Section 2-65-20 of this chapter. 19 (c)(C) The Governor board shall issue, in accordance with the South Carolina Administrative Procedures Act Chapter 23 of Title 20 1, shall issue administrative regulations and cost principles for block grants. 21 (d)(D) The Budget and Control Board board shall ensure that audits of block grants are conducted in accordance with federal 22 laws and regulations. 23 24 Section 2-65-90. The Governor board shall design and operate a state process for review and coordination of proposed federal 25 financial assistance and direct federal development by state and local officials as required by Section 401(a) of the federal 26 Intergovernmental Cooperation Act of 1968 and federal regulations and executive orders. The Governor must board shall seek the advice 27 of the South Carolina Advisory Commission on Intergovernmental Relations and the Regional Councils of Government in the development 28 and implementation of the state process. 29 30 Section 2-65-100. Funds from the following sources are exempt from the requirements of this chapter: 31 (1) general fund appropriations.; 32 (2) funds appropriated by a South Carolina local government.; 33 (3) research and student aid grants, except as otherwise provided in this chapter.;
PART II PAGE 556 1 (4) donated materials, supplies, in-kind services, buildings, land and equipment, if the donations do not create a future 2 obligation of state general fund monies. If a donation does create a future obligation of state general fund monies, the donation is subject 3 to review and approval, in accordance with Section 2-65-30 of this chapter.; 4 (5) federal funds used in connection with capital improvement bond funds subject to authorization pursuant to Act 1377 of 5 1968. 6 7 Section 2-65-110. In developing the budget format and procedures, the Budget & Control Board shall follow the 8 recommendations of the Governor in accordance with the procedure as set forth in Section 2-65-30. RESERVED 9 10 Section 2-65-120. Notwithstanding any other laws provisions of law, all agencies and institutions of the State shall cooperate 11 fully with the board and the Governor in the implementation of this chapter." 12 13 B. This section takes effect July 1, 1998. 14 15 SECTION 13 16 17 TO AMEND THE 1976 CODE BY ADDING SECTION 12-6-3385 SO AS TO ALLOW A REFUNDABLE STATE INDIVIDUAL 18 INCOME TAX CREDIT FOR A PORTION OF TUITION PAID AT A PUBLIC OR INDEPENDENT INSTITUTION OF 19 HIGHER LEARNING IN THIS STATE AND TO DEFINE SUCH INSTITUTIONS, TO PROVIDE THE PERCENTAGE 20 AMOUNT OF THE CREDIT AND ITS DURATION, TO PROVIDE THE CRITERIA STUDENTS ELIGIBLE FOR THE 21 CREDIT MUST MEET, TO DEFINE TUITION FOR PURPOSES OF THE CREDIT, AND TO PROVIDE THAT THE CREDIT 22 APPLIES ONLY FOR STUDENTS GRADUATING FROM HIGH SCHOOL DURING OR AFTER MAY, 1998. 23 24 A. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding: 25 26 "Section 12-6-3385. (A) A student is allowed a refundable individual income tax credit equal to twenty percent of tuition paid an 27 institution of higher learning or a designated institution as provided for within during the taxable year. A qualified student', as defined 28 in subsection (B)(2) of this section, is allowed an additional credit equal to five percent of tuition paid, not to exceed a total credit of 29 twenty-five percent. Tuition credits may not be claimed for more than eight consecutive semesters. However, extensions may be granted 30 due to medical necessity as defined by the Commission on Higher Education. The credit may be claimed by the student or by an 31 individual eligible to claim the student as a dependent on his federal income tax return, whoever actually paid the tuition. The department 32 shall prescribe a form for claiming the credit. 33 (B) As used in this section: 34 (1) Institution of higher learning' means a public institution defined in Section 59-103-5 and an independent institution as defined 35 in Section 59-113-50.
PART II PAGE 557 1 (2) A designated "Institution of higher learning' means a public or independent bachelor's level institution chartered before 1962 2 whose major campus and headquarters are located within South Carolina; or an independent bachelor's level institution which has attained 3 501(C)3 tax status and is accredited by the Southern Association of Colleges and Secondary Schools or the New England Association of 4 Colleges and Schools; or a public or independent two-year institution which has attained 501(C)3 tax status. Institutions whose sole 5 purpose is religious or theological training, or the granting of professional degrees do not meet the definition of Institution of higher 6 learning' as defined in this section. 7 (3) Qualified student' means a student as defined in item (3 ) of this subsection who: 8 (a) attends a four-year institution and who graduated from high school with a minimum 3.0 cumulative grade average on a 9 4.0 scale, or its numerical equivalent, scored 1000 or better on the Scholastic Aptitude Test (SAT), and has maintained a minimum 10 cumulative 3.0 grade average; or 11 (b) attends a two-year institution and who graduated from high school with a minimum 3.0 cumulative grade average on a 12 4.0 scale or its numerical equivalent, and has maintained a cumulative 3.0 grade average; or 13 (c) has earned at least forty-five semester hours and maintains a cumulative 3.0 grade average. 14 (4) Student' means an individual enrolled in an institution of higher learning: 15 (a) eligible for in-state tuition and fees as determined pursuant to Chapter 112 of Title 59 and applicable regulations; 16 (b) who has completed at least fifteen semester hours or its equivalent as determined by the Commission on Higher Education 17 and who is admitted, enrolled, and classified as a degree-seeking undergraduate or enrolled in a certificate or diploma program of at least 18 one year; 19 (c) who, within twelve months before enrolling: 20 (i) graduated from a high school in this State, 21 (ii) successfully completed a high school home school program in this State in the manner required by law, or 22 (iii) graduated from a preparatory high school outside this State while a dependent of a parent or guardian who is a 23 legal resident of this State and has custody of the dependent; 24 (d) not in default on a federal Title IV or State of South Carolina educational loan, nor who owes a refund on a federal Title 25 IV or a State of South Carolina student financial aid program; 26 (e) who has not been adjudicated delinquent or been convicted or pled guilty or nolo contendere to any felonies or any alcohol 27 or drug-related offenses under the laws of this State, any other state or comparable jurisdiction, or of the United States; 28 (f) making satisfactory progress toward graduation as defined by the institution; 29 (g) who is not a Palmetto Fellowship recipient. 30 (5) Tuition' means the amount charged, including required fees, necessary for enrollment. Higher education tuition at an 31 independent institution means the average tuition at the four-year public institutions of higher learning as defined in Section 59-103- 32 15(B)(2). Before calculating the credit, there must be deducted from tuition any amounts received toward its payment by any other 33 scholarship grants." 34
PART II PAGE 558 1 B. This section is effective for taxable years beginning after 1997 and applies only for persons graduating from high school during or 2 after May, 1998. 3 4 SECTION 14 5 6 TO AMEND THE 1976 CODE BY ADDING SECTION 59-119-165 SO AS TO PROVIDE THAT THE BUDGET AND CONTROL 7 BOARD, IN CONJUNCTION WITH THE DEPARTMENT OF EDUCATION, SHALL TRANSFER ALL FEDERAL FUNDS 8 ASSOCIATED WITH AGRICULTURAL EDUCATION AT THE DEPARTMENT OF EDUCATION TO CLEMSON - PSA 9 (PUBLIC SERVICE ACTIVITIES) NO LATER THAN JULY FIFTEENTH OF EACH FISCAL YEAR AND TO PROVIDE FOR 10 THE MANNER IN WHICH THESE FUNDS ARE REQUIRED TO BE USED. 11 12 The 1976 Code is amended by adding: 13 14 "Section 59-119-165. The Budget and Control Board, in conjunction with the Department of Education, shall transfer all federal 15 funds associated with Agricultural Education at the Department of Education to Clemson-PSA (Public Service Activities) no later than 16 July fifteenth of each fiscal year. Notwithstanding any other provisions of law, funds and positions transferred to Clemson-PSA from the 17 Department of Education for Agricultural Education shall be used for personnel positions and related office and travel expenses to provide 18 overall leadership, coordination, and structure for agricultural education programs, and South Carolina Association of Young Farmers 19 activities in the public schools of this State. Clemson PSA shall provide a report to the Department of Education on the use and 20 expenditure of the federal funds transferred by the Department of Education to Clemson PSA no later than December first of each fiscal 21 year." 22 23 SECTION 15 24 25 TO AMEND SECTION 50-9-910 OF THE 1976 CODE, RELATING TO REVENUE IN CONNECTION WITH FISH, GAME, 26 AND WATERCRAFT, SO AS TO PROVIDE THAT ONE-HALF THE REVENUE FROM ANNUAL NONRESIDENT FISHING 27 LICENSES BE CREDITED TO THE GAME FUND OF THE COUNTY WHERE THE REVENUE WAS COLLECTED. 28 29 A. Section 50-9-910(B) of the 1976 Code is amended to read: 30 31 "(B) The revenue provided for in subsection (A) and one-half of the revenue generated from the sale of annual nonresident fishing 32 licenses must be credited to the county game fund of the county in which the licenses were sold or revenue was collected." 33 34 B. This section takes effect July 1, 1998. 35
PART II PAGE 559 1 SECTION 16 2 3 DELETED 4 5 SECTION 17 6 7 TO AMEND SECTION 35-1-220, AS AMENDED, OF THE 1976 CODE, RELATING TO FUNDS FROM FEES AND 8 LITIGATION SETTLEMENT ALLOWED TO BE RETAINED BY THE ATTORNEY GENERAL FOR OPERATION OF THE 9 SECURITIES DIVISION, SO AS TO ALLOW FIVE HUNDRED THOUSAND DOLLARS OF ANNUAL FEE REVENUES TO 10 BE RETAINED BY THE ATTORNEY GENERAL FOR THE OPERATIONS OF THE SECURITIES DIVISION. 11 12 A. Section 35-1-220(A) of the 1976 Code, as amended by Act 134 of 1997, is further amended to read: 13 "(A) Fee revenues collected pursuant to this chapter in excess of such revenues credited to the general fund of the State in Fiscal 14 Year 1995-96 may be retained by the Attorney General and used for the operations of the Securities Division. The Attorney General may 15 retain the first five hundred thousand dollars from fee revenues collected pursuant to this chapter to be used for the operations of the 16 Securities Division. 17 18 B. This section takes effect July 1, 1998. 19 20 SECTION 18 21 22 TO AMEND SECTION 1-7-150 OF THE 1976 CODE, RELATING TO THE ACCOUNTING OF THE ATTORNEY GENERAL 23 TO THE STATE TREASURER, SO AS TO REQUIRE THAT ALL MONIES, EXCEPT CERTAIN COSTS AND MONIES 24 DEPOSITED IN THE MITIGATION TRUST FUND FOR LOSSES OR DAMAGES TO NATURAL RESOURCES, AWARDED 25 TO THE STATE OF SOUTH CAROLINA BY JUDGMENT OR SETTLEMENT IN ACTIONS OR CLAIMS BROUGHT BY 26 THE ATTORNEY GENERAL ON BEHALF OF THE STATE OR ONE OF ITS AGENCIES OR DEPARTMENTS MUST BE 27 DEPOSITED IN THE GENERAL FUND OF THE STATE. 28 29 A. Section 1-7-150 of the 1976 Code is amended to read: 30 31 "Section 1-7-150. (A) The Attorney General shall account to the State Treasurer for all fees, bills of costs, and moneys monies 32 received by him by virtue of his office. 33 (B) All monies, except investigative costs or costs of litigation awarded by court order or settlement, awarded the State of South 34 Carolina by judgment or settlement in actions or claims brought by the Attorney General on behalf of the State or one of its agencies or
PART II PAGE 560 1 departments must be deposited in the general fund of the State, except for monies recovered for losses or damages to natural resources, 2 which must be deposited in the Mitigation Trust Fund, or where some other disposition is required by law." 3 4 B. This section takes effect July 1, 1998. 5 6 SECTION 19 7 8 DELETED 9 10 SECTION 20 11 12 DELETED 13 14 SECTION 21 15 16 TO AMEND SECTION 56-3-253 OF THE 1976 CODE, RELATING TO THE ESTABLISHMENT OF BIENNIAL 17 REGISTRATION PERIODS FOR MOTOR VEHICLES, SO AS TO PROVIDE THAT THE DEPARTMENT OF PUBLIC 18 SAFETY SHALL NOT ISSUE A REFUND OF THE BIENNIAL REGISTRATION FEE TO A PERSON WHO HAS PAID THE 19 FEE AND MOVES OUT OF THE STATE DURING THE BIENNIAL REGISTRATION PERIOD. 20 21 Section 56-3-253 of the 1976 Code, as added by Act 164 of 1993, is amended by adding at the end: 22 23 "(C) The department shall not issue a refund of the biennial registration fee to a person who has paid the fee and moves out of the 24 State during the biennial registration period." 25 26 SECTION 22 27 28 DELETED 29 30 SECTION 23 31 32 DELETED 33 34 35
PART II PAGE 561 1 SECTION 24 2 3 DELETED 4 5 SECTION 25 6 7 DELETED 8 SECTION 26 9 10 DELETED 11 12 SECTION 27 13 14 DELETED 15 16 SECTION 28 17 18 TO AMEND SECTIONS 9-17-10, 9-17-30, AND 9-17-40, AS AMENDED, OF THE 1976 CODE, RELATING TO THE 19 OPTIONAL RETIREMENT PROGRAM FOR FACULTY AND ADMINISTRATION OF PUBLICLY-SUPPORTED 20 FOUR-YEAR AND POSTGRADUATE INSTITUTIONS OF HIGHER EDUCATION, SO AS TO EXTEND ELIGIBILITY FOR 21 THIS PROGRAM TO FACULTY AND ADMINISTRATION OF TECHNICAL COLLEGES AND TO REVISE THE MANNER 22 IN WHICH CONTRIBUTIONS ARE PAID FOR MEMBERS ELECTING THE OPTIONAL PROGRAM. 23 24 A. Section 9-17-10 of the 1976 Code, as added by Act 42 of 1987, is amended to read: 25 26 "Section 9-17-10. There is established an optional retirement program for the publicly-supported four-year and postgraduate 27 institutions of higher education and technical colleges. Only employees of participating institutions holding faculty and administrative 28 positions are eligible to participate in the optional retirement program. No employee is eligible to participate in the optional retirement 29 program unless he is eligible for membership in the South Carolina Retirement System. Retirement and death benefits must be provided 30 for participants a participant in the optional retirement program through the purchase of an individual annuity contracts contract, fixed or 31 variable in nature, or a combination thereof. The State and the participants participant shall contribute toward the purchase of such 32 contracts the contract which must be issued to, and become the property of, the participants participant. Eligibility is determined solely 33 by the South Carolina Retirement System." 34 B. Section 9-17-30 of the 1976 Code, as added by Act 42 of 1987, is amended to read: 35
PART II PAGE 562 1 "Section 9-17-30. Eligible employees employed by publicly-supported four-year and post-graduate institutions of higher education 2 on or after July 1, 1987, shall elect either to join the South Carolina Retirement System or to participate in the optional retirement program 3 under this chapter on or before December 1, 1987, or within ninety days after entry into service, whichever is later. Eligible employees 4 employed by a publicly-supported technical college on or after July 1, 1998, shall elect either to join the South Carolina Retirement System 5 or to participate in the optional retirement program under this chapter on or before December 1, 1998, or within ninety days after entry 6 into service, whichever is later. The election must be made in writing and filed with the Retirement System and the appropriate officer 7 of the employee's participating institution and is effective on the date of employment. In the event If an eligible employee fails to make 8 the election provided in this section, he the member is considered to have elected membership in the South Carolina Retirement System." 9 10 C. Section 9-17-40 of the 1976 Code, as amended by Act 171 of 1991, is further amended to read: 11 12 "Section 9-17-40. Each participant shall contribute monthly to the program the same amount which he would be required to 13 contribute to the South Carolina Retirement System if he were a member of that system. Participant contributions may be made by payroll 14 deduction, by a reduction in salary, or by employer pick up in accordance with any applicable provisions of the United States Internal 15 Revenue Code. Each participating institution shall contribute on behalf of each participant the same amount it would be required to 16 contribute to the South Carolina Retirement System if the participant were a member of that system. Each participating institution shall 17 remit both the participants' and its own contributions to the Retirement System at the time it remits contributions for members of the 18 Retirement System. The Retirement System shall remit to the designated companies, for application to participants' contracts, an amount 19 equal to the participant's contribution plus that percentage of each participating institution's contribution which would have been used 20 to fund all Retirement System benefits for future service if the participants had been members of the Retirement System, but the 21 participating institution's contribution may not be less than four and one-quarter percent of compensation. The participating institution 22 shall remit the remainder of its required contribution to the Retirement System." 23 24 D. Section 9-1-1710(2) of the 1976 Code, as last amended by Act 166 of 1993, is further amended to read: 25 26 "(2) On or after July 1, 1975, any A member may elect to become entitled to creditable service on account of his out-of-state service 27 by making a special lump-sum contribution equal to ten percent and effective July 1, 1994, twelve percent of his annual earnable 28 compensation at the time of payment for each year of out-of-state service and a proportionate part thereof for a fraction of a year, provided 29 that the earnable compensation used as a basis for the special lump-sum contribution must not be less than his earnable compensation in 30 any one of the three preceding fiscal years. A member who elects to receive creditable service for out-of-state service may establish a 31 portion of the service on a one-time basis except the balance may be established in accordance with Section 9-1-80. The out-of-state 32 service must be matched on a one-for-one basis with in-state service. However, a member who has been in continuous covered 33 employment for ten years may receive creditable service for any amount of out-of-state service. Out-of-state service may not exceed the 34 total creditable service, exclusive of out-of-state service which he would have if he remained in service until completion of the eligibility 35 requirements for an unreduced service retirement allowance. A member who elects to receive creditable service for his out-of-state service
PART II PAGE 563 1 shall establish credit for all service for which he is eligible, except that the service shall not exceed the total creditable service, exclusive 2 of out-of-state service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced 3 service retirement allowance. The contribution thereafter must be treated in the same way as the regular contributions required of a 4 member hereunder." 5 6 SECTION 29 7 8 DELETED 9 10 SECTION 30 11 12 DELETED 13 14 SECTION 31 15 16 TO AMEND SECTION 12-36-2110, AS AMENDED, OF THE 1976 CODE, RELATING TO THE THREE HUNDRED DOLLAR 17 MAXIMUM SALES TAX ON AIRCRAFT, MOTOR VEHICLES, MOTORCYCLES, BOATS, TRAILERS, RECREATIONAL 18 VEHICLES, SELF-PROPELLED LIGHT CONSTRUCTION EQUIPMENT, AND CERTAIN OTHER ITEMS OF TANGIBLE 19 PERSONAL PROPERTY, SO AS TO PROVIDE THAT EQUIPMENT INSTALLED ON A FIREFIGHTING VEHICLE IS 20 INCLUDED WITH THE VEHICLE FOR PURPOSES OF CALCULATING THE MAXIMUM TAX DUE. 21 22 A. Section 12-36-2110 of the 1976 Code, as last amended by Act 151 of 1997, is further amended by adding an appropriately lettered 23 subsection at the end to read: 24 25 "( ) Equipment provided, supplied or installed on a firefighting vehicle is included with the vehicle for purposes of calculating the 26 maximum tax due under this section." 27 28 B. The effect of this amendment is to clarify and express the intent of the General Assembly that the sales tax application of the sale of 29 firefighting vehicles must include in the calculation of the maximum tax all equipment installed, provided, or supplied with the vehicle 30 and included in the purchase price at the time of the sale of the vehicle, not including individual firefighter's protective clothing. 31 32 C. This section takes effect June 29, 1999. 33
PART II PAGE 564 1 SECTION 32 2 3 DELETED 4 5 SECTION 33 6 7 DELETED 8 9 SECTION 34 10 11 TO AMEND THE 1976 CODE BY ADDING SECTION 52-7-37 SO AS TO PROVIDE THAT NO TAX OR FEE MAY BE 12 IMPOSED BY THE STATE ATHLETIC COMMISSION OR A COUNTY ATHLETIC COMMISSION ON THE GROSS 13 RECEIPTS RECEIVED BY REASON OF THE LEASE OR SALE OF TELEVISION, MOTION PICTURE, OR RADIO RIGHTS 14 IN CONNECTION WITH ANY BOXING, WRESTLING, KICK BOXING, FULL CONTACT KARATE, OR SPARRING 15 EXHIBITION OR PERFORMANCE IN THIS STATE. 16 17 A. The 1976 Code is amended by adding: 18 19 "Section 52-7-37. Notwithstanding any other provision of law, including applicable regulations, no tax or fee may be imposed by 20 the State Athletic Commission or a county athletic commission on the gross receipts received by reason of the lease or sale of television, 21 motion picture, or radio rights in connection with any boxing, wrestling, kick boxing, full contact karate, or sparring exhibition or 22 performance in this State." 23 24 B. This section is repealed July 30, 1999 unless otherwise extended by act or resolution of the General Assembly. 25 26 SECTION 35 27 28 DELETED 29 30 SECTION 36 31 32 DELETED 33 34
PART II PAGE 565 1 SECTION 37 2 3 TO AMEND THE 1976 CODE BY ADDING SECTION 12-10-35 SO AS TO PROVIDE A TEN-YEAR MORATORIUM ON 4 STATE CORPORATE INCOME TAX FOR A CORPORATION THAT IS A "QUALIFYING BUSINESS" UNDER THE 5 ENTERPRISE ZONE ACT OF 1995 IF THE BUSINESS HAS CREATED AT LEAST ONE HUNDRED NEW FULL-TIME JOBS 6 IN A COUNTY IN WHICH THE AVERAGE ANNUAL UNEMPLOYMENT RATE FOR THE LAST TWO COMPLETED 7 CALENDAR YEARS IS AT LEAST TWICE THE STATE AVERAGE AND AT LEAST NINETY PERCENT OF THE 8 QUALIFYING BUSINESSES' INVESTMENT IN THIS STATE IS LOCATED IN SUCH A COUNTY, TO PROVIDE A 9 MORATORIUM OF FIFTEEN YEARS IF AT LEAST TWO HUNDRED NEW FULL-TIME JOBS ARE ADDED, TO PROVIDE 10 HOW THE MORATORIUM APPLIES, AND TO REPEAL THIS MORATORIUM PROVISION EFFECTIVE JULY 1, 2003. 11 12 A. Chapter 10, Title 12 of the 1976 Code is amended by adding: 13 14 "Section 12-10-35. (A) If a qualifying business creates at least one hundred new full-time jobs, as defined in Section 12-6-3360(F), 15 in a county with an average annual unemployment rate of at least twice the state average, but not less than ten percent, during each of the 16 last two completed calendar years and at least ninety percent of the qualifying businesses' investment in this State is in such a county, then 17 the company is allowed a moratorium on state corporate income taxes imposed pursuant to Section 12-6-530 for the company's first ten 18 taxable years beginning with the taxable year after it first qualifies. The moratorium applies to that portion of the company's corporate 19 income tax that represents the ratio that the company's new investment is of its total investment in this State. 20 (B) If at least two hundred new full-time jobs are added, the moratorium period is fifteen taxable years." 21 22 B. This section applies for taxable years beginning after 1997, and Section 12-10-35 of the 1976 Code as added by this section is repealed 23 effective July 1, 2003. However, this repeal does not affect any moratorium then in effect on July 1, 2003. 24 25 SECTION 38 26 27 DELETED 28 29 SECTION 39 30 31 DELETED 32 SECTION 40 33 DELETED 34
PART II PAGE 566 1 SECTION 41 2 3 TO AMEND SECTIONS 12-23-810 AND 12-23-815, BOTH AS AMENDED, 0F THE 1976 CODE, RELATING TO THE 4 LICENSE TAX ON HOSPITALS, SO AS TO DELETE PROVISIONS RELATING TO THE APPLICATION OF THE TAX TO 5 A LICENSED HOSPITAL IN ANOTHER STATE WHICH DOES BUSINESS IN THIS STATE AND TO DELETE AN 6 OBSOLETE REFERENCE APPLICABLE TO THE INFORMATION NEEDED TO ISSUE TAX ASSESSMENTS AND ASSIGN 7 THE DUTY TO THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD; AND 8 TO AMEND SECTION 44-6-155, AS AMENDED, RELATING TO THE MEDICAID EXPANSION FUND, SO AS TO DELETE 9 VARIOUS USES OF THE MONIES IN THE FUND AND TO CORRECT AN OBSOLETE AGENCY REFERENCE. 10 11 A. Section 12-23-810(B) of the 1976 Code, as added by Act 105 of 1991, is amended to read: 12 13 "(B) Reserved Effective July 1, 1992, every hospital licensed as a general hospital in another state is subject to the payment of 14 an excise, license, or privilege tax if the hospital does business in South Carolina. A hospital is considered to be doing business in this State 15 if the hospital, or the firm, corporation, association, or partnership which owns or operates the hospital, either directly or through a 16 subsidiary corporation, establishes a physical presence in the State by owning, leasing, subleasing, or by any other means arranges to 17 provide space to engage in or transact activity for financial profit or gain. Each hospital's tax must be based on the total number of patient 18 days from the prior year attributed to South Carolina residents, excluding Medicaid patient days, adjusted by the hospital's ratio of total 19 net to gross patient revenue. Net patient revenue for purposes of this formula is defined as gross patient revenue less contractual 20 allowances, bad debts, uncompensated indigent care, property taxes, and state and federal income taxes." 21 22 B. Section 12-23-815 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read: 23 24 "Section 12-23-815. The Department of Revenue shall issue assessments for the tax provided by this article based on information 25 provided by the Department of Health and Environmental Control and the Health and Human Services Finance Commission Office of 26 Research and Statistics of the State Budget and Control Board." 27 28 C. Section 44-6-155(C) of the 1976 Code, as last amended by Act 105 of 1991, is further amended to read: 29 30 "(C) Monies in the fund must be used to: 31 (1) provide Medicaid coverage to pregnant women and infants with family incomes above one hundred percent but below one 32 hundred eighty-five percent of the federal poverty guidelines; 33 (2) provide Medicaid coverage to children aged one through six with family income below federal poverty guidelines; 34 (3) provide Medicaid coverage to aged and disabled persons with family income below federal poverty guidelines;
PART II PAGE 567 1 (4) reserved provide Medicaid coverage through a medically-needy program to eligible persons in families with medical 2 expenses which reduce the net family income below state and federal standards; 3 (5) reserved provide Medicaid reimbursement for hospital patients in need of subacute care, including patients in swing beds; 4 (6) reserved provide a pool of at least forty-four million dollars for the sole purpose of adjusting Medicaid reimbursement for 5 hospitals as provided in Section 44-6-140(A)(1). Funds in the pool not immediately used for this purpose must be carried forward for 6 eventual use for this purpose; 7 (7) provide up to two hundred forty thousand dollars to reimburse the Division Office of Research and Statistical Services 8 Statistics of the State Budget and Control Board and hospitals for the cost of collecting and reporting data pursuant to Section 44-6-170; 9 and 10 (8) reserved supplement state funds needed to administer items (3) and (4), not to exceed $700,000." 11 12 SECTION 42 13 14 TO AMEND SECTION 44-7-2570, AS AMENDED, OF THE 1976 CODE, RELATING TO FEES FOR SERVICE UNDER THE 15 INFANTS AND TODDLERS WITH DISABILITIES ACT, SO AS TO PROVIDE THAT FAMILIES MUST NOT BE CHARGED 16 FEES FOR EARLY INTERVENTION SERVICES PROVIDED UNDER THE ACT. 17 18 Section 44-7-2570(A) of the 1976 Code, as added by Act 114 of 1989, is amended to read: 19 20 "(A) Families with incomes below the federal poverty guidelines must not be charged for early intervention services provided 21 pursuant to this article. The department shall develop a schedule of sliding fees for families with incomes above the federal poverty level." 22 23 SECTION 43 24 25 TO AMEND SECTION 50-3-180 OF THE 1976 CODE, RELATING TO THE MITIGATION TRUST FUND OF SOUTH 26 CAROLINA, SO AS TO PROVIDE THAT FUNDS RECOVERED FOR LOSSES OR DAMAGES TO NATURAL RESOURCES 27 MUST BE DEPOSITED IN THE FUND AND USED FIRST FOR RESTORATION IN THE AFFECTED AREAS AND THEN 28 GENERALLY FOR SUCH RESTORATION. 29 30 A. Section 50-3-180 of the 1976 Code, as added by Act 458 of 1996, is amended to read: 31 32 "(A) The grants, contributions, and other proceeds for mitigation projects in the State. The Board of Trustees for the Mitigation 33 Trust Fund is the chairman and the members of the South Carolina Department of Natural Resources Board with full authority over the 34 administration of the funds deposited in the fund. The State Treasurer is the custodian of the fund and shall invest its assets in an 35 interest-bearing account pursuant to South Carolina law.
PART II PAGE 568 1 (B) The Mitigation Trust Fund may receive appropriations of state general funds, federal funds, donations, gifts, bond issue 2 receipts, securities, and other monetary instruments of value. Reimbursement for monies expended from this fund must be deposited in 3 this fund. Funds received through sale, exchange, or otherwise, of products of the property including, but not limited to, timber and utility 4 easement rights, accrue to the Mitigation Trust Fund. Funds recovered for losses or damages to natural resources must be deposited to 5 the Mitigation Trust Fund to be used first for restoration in the areas affected and then as provided in subsection (C) of this section. 6 (C) The income received and accruing from the fund must be spent only for the acquisition, restoration, enhancement, or management 7 of property for mitigation for adverse impacts to natural resources. 8 (D) The proceeds from this fund may be carried forward from year to year and do not revert to the general fund of the State." 9 10 B. This section takes effect July 1, 1998. 11 12 SECTION 44 13 14 TO PROVIDE THAT THE LEGISLATIVE COUNCIL SHALL DISTRIBUTE NINE SETS OF THE 1976 CODE TO THE 15 ADMINISTRATIVE LAW JUDGE DIVISION, TO PROVIDE THAT THE CODE COMMISSIONER SHALL INCLUDE THE 16 ADDITIONAL DISTRIBUTION IN THE REPRINTING OF SECTION 2-13-240 OF THE 1976 CODE FOR THE 1998 17 CUMULATIVE SUPPLEMENT, AND TO AUTHORIZE THE CODE COMMISSIONER TO REPRINT THE DISTRIBUTION 18 LIST IN TABULAR FORM. 19 20 In addition to the sets of the 1976 Code distributed by the Legislative Council pursuant to Section 2-13-240(a) of the 1976 Code, there 21 must be distributed nine sets to the Administrative Law Judge Division. The Code Commissioner shall include this additional distribution 22 in Section 2-13-240(a) of the 1976 Code when it is reprinted for the 1998 cumulative supplement and he may reformat the subsection in 23 tabular form. 24 25 SECTION 45 26 27 TO AMEND SECTION 44-6-400, AS AMENDED, OF THE 1976 CODE, RELATING TO DEFINITIONS CONCERNING 28 INTERMEDIATE SANCTIONS FOR THE MEDICAID CERTIFIED NURSING HOME ACT, SO AS TO REVISE CERTAIN 29 DEFINITIONS; TO AMEND SECTION 44-6-420, AS AMENDED, RELATING TO SANCTIONS AGAINST NURSING HOMES 30 FOR VIOLATIONS OF MEDICAID PROGRAM REQUIREMENTS, SO AS TO REQUIRE THE DEPARTMENT OF HEALTH 31 AND HUMAN SERVICES TO COORDINATE ENFORCEMENT WITH THE FEDERAL AUTHORITIES FOR NURSING 32 HOMES CERTIFIED UNDER BOTH MEDICARE AND MEDICAID AND TO TAKE ACTIONS COMMENSURATE WITH 33 FEDERAL ACTIONS WHEN THE NURSING HOME IS ONLY CERTIFIED UNDER MEDICAID; TO AMEND SECTION 34 44-6-470, AS AMENDED, RELATING TO FINES FOR VIOLATIONS AND USE OF FINES COLLECTED, SO AS TO DELETE 35 SPECIFIC FINE AMOUNTS AND FURTHER PROVIDE FOR THE USE OF CIVIL MONETARY PENALTIES COLLECTED;
PART II PAGE 569 1 TO AMEND SECTION 44-6-540 RELATING TO THE AUTHORITY OF THE DEPARTMENT TO PROMULGATE 2 REGULATIONS, SO AS TO PROVIDE THAT SUCH REGULATIONS SHALL ENSURE COMPLIANCE WITH THE 3 REQUIREMENTS FOR PARTICIPATION IN THE MEDICAID PROGRAM; AND TO REPEAL SECTIONS 44-6-410, 44-6-430, 4 44-6-440, 44-6-450, 44-6-460, 44-6-480, 44-6-490, 44-6-500, 44-6-510, AND 44-6-520, ALL RELATING TO SANCTIONS AND 5 ENFORCEMENT PROCEDURES FOR VIOLATIONS OF MEDICAID PROGRAM REQUIREMENTS. 6 7 A. Section 44-6-400, as amended, of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read: 8 9 "Section 44-6-400. As used in this article: 10 (1) Department' means the Department of Health and Environmental Control Health and Human Services. 11 (2) Nursing home' means a facility subject to licensure as a nursing home by the department Department of Health and Environmental 12 Control and subject to the permit provisions of under Article 2, Chapter 7 of Title 44 and which has been certified for participation in the 13 Medicaid program, or which has been dually certified for participation in the Medicaid and Medicare programs. 14 (3) Ombudsman' means the State Ombudsman established under Chapter 38 of Title 43. 15 (4)(3) Resident' means a person who resides or resided in a nursing home during a period of an alleged violation. 16 (4) Survey agency' means the South Carolina Department of Health and Environmental Control or any other agency designated to 17 conduct compliance surveys of nursing facilities participating in the Title XIX (Medicaid) program." 18 19 B. Section 44-6-420 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read: 20 21 "Section 44-6-420. When the Department of Health and Human Services department is notified by the survey agency that a nursing 22 home is in violation of one or more of the requirements for participation in the Medicaid program, it, based on the severity of the violation 23 as set forth by regulation, may take enforcement action as follows: 24 (1) deny payment under the Medicaid program if the nursing home is dually certified for participation in both the Medicare and 25 Medicaid programs, the department shall coordinate any enforcement action with federal authorities and shall defer to the actions of these 26 federal authorities to the extent required by federal statute or regulation; 27 (2) assess and collect monetary penalties set forth in Section 44-6-470 if the nursing home is only certified for participation in the 28 Medicaid program and is not certified for participation in the Medicare program, the department may take any enforcement action 29 authorized under federal statute or regulation that would have been available for use by federal authorities if the nursing home had been 30 dually certified; 31 (3) appoint temporary management in accordance with the provisions of this article. The department of Health and Human Services 32 may promulgate regulations to assure prompt compliance with the requirements for participation in the Medicaid program and shall monitor 33 a nursing home that repeats violations. 34 Any enforcement actions taken solely by the department under item (2) must be proportionate to the scope and severity of the 35 violations and also shall take into account the factors considered by federal authorities in similar enforcement actions. Dually certified
PART II PAGE 570 1 nursing homes and nursing homes only certified for participation in the Medicaid program must be subjected to comparable enforcement 2 actions for comparable violations." 3 4 C. Section 44-6-470 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read: 5 6 "Section 44-6-470. A nursing home found to be in violation of one of the requirements for participation in the Medicaid program may 7 be fined up to twenty-five hundred dollars a day by the Department of Health and Human Services. A nursing home that repeats violations 8 may be fined up to five thousand dollars a day. All fines are assessed and collected with interest from the date of notification of the 9 deficiencies until the date they are corrected. The amount of the fines must be proportionate to the severity of the violation as set forth by 10 regulation of the Department of Health and Human Services. 11 Funds collected by the Department of Health and Human Services as a result of the imposition of the fines must be used to protect 12 the health and property of the patients in the affected nursing home, including the relocation of patients to other nursing homes. A receiver 13 appointed by the court to temporarily manage an affected nursing home, may use the funds for the cost of relocating patients to other 14 nursing homes, if necessary, and for maintenance of operation of the nursing home pending correction of the deficiencies. He may also 15 reimburse patients for personal funds that may have been lost as a result of the violations. 16 Any use of funds collected by the department as a result of the imposition of civil monetary penalties or other enforcement actions 17 must be for a purpose related to the protection of the health and property of residents of nursing homes that participate in the Medicaid 18 program. These funds may be used for the cost of relocating residents to other nursing homes, if necessary, and also may be used to 19 reimburse residents for personal funds lost as a result of violations of the requirements for participation in the Medicaid program by the 20 nursing home. In addition, these funds may be used for other costs directly associated with enforcement or corrective measures at facilities 21 found to be out of compliance with the requirements for participation in the Medicaid program or for any other purpose that enhances or 22 improves the health and quality of life for residents. These requirements for the use of funds collected also apply to funds received by the 23 department that are collected as the result of enforcement actions directed by federal authorities." 24 25 D. Section 44-6-540 of the 1976 Code, as added by Act 449 of 1990, is amended to read: 26 27 "Section 44-6-540. The commission department is authorized to promulgate regulations, pursuant to the Administrative Procedures 28 Act, to administer this article and to ensure compliance with the requirements for participation in the Medicaid program." 29 30 E. Sections 44-6-410, 44-6-430, 44-6-440, 44-6-450, 44-6-460, 44-6-480, 44-6-490, 44-6-500, 44-6-510, and 44-6-520 of the 1976 Code 31 are repealed. 32 33 34
PART II PAGE 571 1 SECTION 46 2 3 TO AMEND THE 1976 CODE BY ADDING SECTION 44-7-262 SO AS TO ESTABLISH MINIMUM PATIENT-STAFF 4 RATIOS FOR STAFF PROVIDING NURSING CARE IN NURSING HOMES AND MAKING THOSE MINIMUM 5 STAFFING RATIOS A CONDITION OF LICENSURE. 6 7 A. The 1976 Code is amended by adding: 8 9 "Section 44-7-262. (A) As a condition of licensure, in addition to the number of licensed nursing personnel required by R61-17, or 10 any other regulation, a nursing home must provide at a minimum these resident-staff ratios for staff who provide nursing care: 11 (1) 9 to 1 for shift 1; 12 (2) 13 to 1 for shift 2; 13 (3) 22 to 1 for shift 3. 14 In those facilities utilizing two twelve-hour shifts, the staffing ratios for shift one apply to the twelve-hour shift occurring primarily 15 during the day, and the staffing ratios for shift three apply to the twelve-hour shift occurring primarily during the night. 16 (B) For purposes of this section: 17 (1) Shift 1' means a work shift that occurs primarily during the daytime hours including, but not limited to, a 7:00 a.m. to 3:00 18 p.m. shift; 19 (2) Shift 2' means a work shift that generally includes both daytime and evening hours including, but not limited to, a 3:00 p.m. 20 to 11:00 p.m. shift; 21 (3) Shift 3' means a work shift that occurs primarily during the nighttime hours including, but not limited to, an 11:00 p.m. to 22 7:00 a.m. shift." 23 24 B. This section takes effect January 1, 1999. 25 26 SECTION 47 27 28 TO AMEND TITLE 44 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 122 SO AS TO 29 CREATE THE COUNTY GRANTS FUND PROGRAM FOR ADOLESCENT PREGNANCY PREVENTION INITIATIVES; 30 TO PROVIDE FOR THE ADMINISTRATION AND DISTRIBUTION OF MONIES APPROPRIATED TO THE GRANTS 31 FUND; AND TO REQUIRE REGULAR EVALUATIONS OF PROJECTS RECEIVING MONIES FROM THE GRANTS FUND. 32 33 A. Title 44 of the 1976 Code is amended by adding: 34
PART II PAGE 572 1 "CHAPTER 122 2 County Grants Fund 3 for Adolescent Pregnancy Prevention Initiatives 4 5 Section 44-122-10. As used in this chapter: 6 (1) Adolescent' means an individual nineteen years of age and under. 7 (2) Contractor' means a public or private agency or organization receiving money from the fund. 8 (3) County government' means the governing body of a county or the organization or agency in a county that has been designated 9 pursuant to Section 44-122-30(C) to assume the duties and responsibilities assigned to county governments. 10 (4) Department' means the South Carolina Department of Social Services. 11 (5) Initiative' means a local program or project funded by a county pursuant to this chapter. 12 (6) Short term outcomes' means the intermediate results that a particular adolescent pregnancy prevention intervention is likely to 13 produce including, but not limited to, increased knowledge, behavior change, or delays or reductions in sexual activity. 14 (7) Long term outcome' means the measurable reduction in the rate of adolescent pregnancy for a specific target population or defined 15 geographic area. 16 (8) Primary pregnancy prevention' means prevention of first pregnancy. 17 (9) Fund' means the County Grants Fund for Adolescent Pregnancy Prevention Initiatives created by this chapter. 18 19 Section 44-122-20. (A) There is established the County Grants Fund for Adolescent Pregnancy Prevention Initiatives. The fund must 20 be administered by the department and county governments as provided in this chapter. The purpose of the fund is to support local efforts 21 to prevent early sexual activity and to measurably reduce the rate of adolescent pregnancy in each county and in the State and to ensure 22 that these efforts reflect local community values. 23 (B) Any program components funded by federal Temporary Assistance for Needy Families (TANF) dollars are subject to TANF 24 reporting requirements and federal fiscal accountability requirements. The department shall amend the South Carolina Temporary 25 Assistance for Needy Families (TANF) Block Grant State Plan as required by federal law to govern expenditures of federal TANF dollars. 26 27 Section 44-122-30. (A) Ten percent of the money appropriated annually to the fund by the General Assembly is to be used by the 28 department to evaluate the effectiveness of each initiative and the fund as specified in Section 44-122-60. The remaining money must be 29 distributed by the department to each county government in the following manner: 30 (1) fifteen percent of the money appropriated must be allocated evenly among all counties; 31 (2) fifteen percent of the money appropriated must be allocated to counties based on the size of their adolescent population; 32 (3) twenty percent of the money appropriated must be allocated to counties based on their rate of adolescent pregnancy; 33 (4) forty percent of the funds appropriated must be allocated to counties based on their number of adolescent pregnancies.
PART II PAGE 573 1 A county government may retain up to five percent of the money it receives to cover the actual costs of administering the fund. All 2 other funds must be allocated for initiatives mainly focused on primary pregnancy prevention. Money must be allocated by the county 3 within two years of receipt. 4 (B) Money appropriated to the fund must not be used for: 5 (1) purchase of inpatient care; 6 (2) purchase or improvement of land; 7 (3) purchase, construction, or permanent improvement of any building or other facility; 8 (4) purchase of major equipment; 9 (5) transportation to or from abortion services; 10 (6) abortions; or 11 (7) provision of anything of monetary value to a participant in a local project or initiative; counseling and guidance may be 12 provided as well as any service of non-monetary value. 13 (C) If the governing body of a county chooses not to assume the responsibilities and duties assigned to county governments by this 14 chapter: 15 (1) the governing body may designate an agency or organization to assume those responsibilities and duties; or 16 (2) in the absence of designation by the governing body, the department may designate another agency or organization within 17 the county to assume those responsibilities and duties. 18 If a county government uses money it receives pursuant to subsection (A) in a manner not expressly authorized by this chapter, the 19 department may designate another agency or organization within the county to assume those responsibilities and duties. 20 21 Section 44-122-40. (A) A local public or private agency or organization or combination of these agencies and organizations may apply 22 to the county government for an allocation of funds to operate an adolescent pregnancy prevention initiative. All initiatives funded by 23 the county government pursuant to this chapter shall emphasize premarital sexual abstinence and male responsibility. All applications 24 must meet the following minimum standards for consideration: 25 (1) Each initiative must have a plan of action for prevention of adolescent pregnancy that extends for at least five years. The 26 proposal must include convincing evidence of a direct link between project activities and the reduction of adolescent pregnancy in the 27 target population. 28 (2) Each initiative must have realistic, specific, and measurable goals, objectives, timelines, and budget for the prevention of 29 adolescent pregnancy. 30 (3) The proposal must include a description of the method for collecting and reporting the data required by the department to 31 evaluate the effectiveness of the initiative as specified in Section 44-122-60. Each initiative, before submitting its proposal, must send 32 a representative to the evaluation standards workshop sponsored by the department. 33 (B) Continuation of funding for a local teen pregnancy prevention initiative is contingent upon: 34 (1) successful evaluation of the effectiveness of the contractor's performance in achieving its short term outcomes within the first 35 two years of receiving money and in achieving the fund's long term outcome by the end of the third year of receiving money; and
PART II PAGE 574 1 (2) the contractor updating information concerning the nature of the problem in its target population, available resources, and 2 potential barriers to success, with appropriate changes in the initiative's goals, objectives, timelines, and budget. 3 4 Section 44-122-50. (A) The Department of Social Services shall: 5 (1) monitor the statewide administration of the fund; 6 (2) evaluate the success of the initiatives funded under this chapter, as required by Section 44-122-60; 7 (3) analyze all available information and report to the Governor and the General Assembly on the effectiveness of the fund in 8 measurably reducing the rate of adolescent pregnancy in the State. These reports must be made annually, with the first report due three 9 years after the first distribution of funds pursuant to Section 44-122-30(A); and 10 (4) provide to each county government specific criteria required by this chapter. 11 (B) County governments shall: 12 (1) oversee and administer funds distributed to the county pursuant to Section 44-122-30(A); 13 (2) choose from among the applicants that meet the minimum standards; 14 (3) develop additional criteria, as necessary, to meet specific local needs; and 15 (4) monitor contractors' progress in meeting stated goals, objectives, and timelines. 16 (C) Contractors shall: 17 (1) comply with reporting, contracting, and evaluation requirements of the county government and the department; 18 (2) define and maintain cooperative ties with other community institutions; 19 (3) coordinate and collaborate with other community entities that have an interest in positive youth development and adolescent 20 risk behavior reduction; 21 (4) obtain approval from the county government before making changes in program goals, objectives, and target populations; and 22 (5) before the beginning of each fiscal year, submit to the county government for approval a budget of planned expenditures, and 23 at the end of each fiscal year, render an accounting of expenditures to the county government. 24 (D) The Department of Health and Environmental Control shall: 25 (1) provide technical assistance and training to county governments and contractors, as needed, related to adolescent pregnancy 26 prevention issues; and 27 (2) if a community health assessment has been conducted in a county, share information with county governments, contractors, 28 and program applicants about the nature of the problem, available resources, and potential barriers to the development of teen pregnancy 29 prevention projects and activities. 30 31 Section 44-122-60. An evaluation must be conducted by a firm or individual external to the department, on a schedule to be 32 determined by the department and must assess the effectiveness of each initiative in meeting its short and long term outcomes. Evaluation 33 standards must be consistent across all initiatives. The evaluation also must assess the effectiveness of each county government's efforts 34 in measurably reducing the rate of adolescent pregnancy for the county. These efforts include administration of the fund and selection 35 and oversight of contractors."
PART II PAGE 575 1 SECTION 48 2 3 TO AMEND SECTION 56-1-2070 OF THE 1976 CODE, RELATING TO THE PROHIBITION ON DRIVING A 4 COMMERCIAL MOTOR VEHICLE WITHOUT A VALID COMMERCIAL DRIVERS LICENSE, SO AS TO EXTEND 5 THE EXEMPTIONS TO THIS REQUIREMENT TO MEMBERS OF THE NATIONAL GUARD ACTING IN AN 6 OFFICIAL CAPACITY DRIVING STATE VEHICLES; AND TO AMEND SECTION 59-67-510, RELATING TO USES 7 ALLOWED FOR SCHOOL BUSES, SO AS TO ALLOW COUNTY BOARDS OF EDUCATION TO PERMIT THE USE OF 8 SCHOOL BUSES FOR OFFICIAL FUNCTIONS OF THE NATIONAL GUARD AND PERMIT THE OPERATION OF 9 BUSES BY THE NATIONAL GUARD IN CONNECTION WITH ITS OFFICIAL FUNCTIONS. 10 11 A. Section 56-1-2070(B)(1) of the 1976 Code is amended to read: 12 13 "(1) active duty military personnel and reservists and National Guard members who are acting in an official capacity on active 14 duty while operating vehicles owned by the United States or the state government, unless they are required by the owner of the vehicle 15 to have a valid state driver's license;" 16 17 B. Section 59-67-510 of the 1976 Code is amended to read: 18 19 "Section 59-67-510. County boards of education may permit the use of school bus equipment for transportation in connection 20 with athletic events, boys' and girls' clubs, special events in connection with the schools, official functions by the National Guard and 21 such other educational purposes as may appear proper to the respective boards; and may permit the operation of school bus equipment 22 by the National Guard for transportation in connection with official functions of the National Guard." 23 24 SECTION 49 25 26 TO AMEND SECTION 12-6-1140, AS AMENDED, AND SECTION 12-6-1170, OF THE 1976 CODE, RELATING TO THE 27 RETIREMENT INCOME DEDUCTION ELECTION AND THE TAXABLE INCOME EXCLUSION ALLOWED PERSONS 28 SIXTY-FIVE YEARS OF AGE OR OLDER FOR PURPOSES OF THE STATE INDIVIDUAL INCOME TAX, SO AS TO 29 ELIMINATE THE ELECTION AND ALLOW AN ANNUAL DEDUCTION OF UP TO THREE THOUSAND DOLLARS OF 30 RETIREMENT INCOME AND UP TO TEN THOUSAND DOLLARS OF RETIREMENT INCOME BEGINNING IN THE 31 TAXABLE YEAR THE TAXPAYER ATTAINS AGE SIXTY-FIVE, AND TO ALLOW AN ANNUAL DEDUCTION OF 32 ELEVEN THOUSAND FIVE HUNDRED DOLLARS OF SOUTH CAROLINA TAXABLE INCOME BEGINNING IN THE 33 TAXABLE YEAR THE TAXPAYER ATTAINS THE AGE OF SIXTY-FIVE YEARS REDUCED BY THE RETIREMENT 34 INCOME DEDUCTION, TO PROVIDE FOR CLAIMING THIS DEDUCTION ON JOINT RETURNS, TO DELETE 35 PROVISIONS RELATING TO THE POSTPONEMENT OF THE MAXIMUM DEDUCTION UNDER THE PRIOR LAW
PART II PAGE 576 1 AND TO EXTEND THE PERIOD FOR FILING A TIMELY CLAIM FOR REFUND FOR THE 1994 TAXABLE YEAR 2 THROUGH APRIL 15, 1999, FOR TAXPAYERS WHOSE CLAIM IS BASED ON NOT HAVING MADE THE 3 IRREVOCABLE ELECTION RELATING TO THE RETIREMENT INCOME DEDUCTION AND TO AMEND SECTION 4 12-14-40 OF THE 1976 CODE, RELATING TO THE DESIGNATION OF AN ECONOMIC IMPACT ZONE, SO AS TO 5 DELETE THE FIFTEEN-YEAR "SUNSET" ON SUCH ZONES; AND TO AMEND SECTION 12-14-60, AS AMENDED, 6 RELATING TO THE STATE INCOME TAX INVESTMENT CREDIT ALLOWED FOR CERTAIN INVESTMENTS IN 7 ECONOMIC IMPACT ZONES, SO AS TO DELETE THE FIVE PERCENT CREDIT AND REPLACE IT WITH A 8 GRADUATED PERCENTAGE FROM ONE TO FIVE PERCENT BASED ON THE INVESTMENT'S USEFUL LIFE AND 9 TO LIMIT THE TOTAL CREDIT ALLOWED A UTILITY FOR INVESTMENTS MADE AFTER JUNE 30, 1998, TO ONE 10 MILLION DOLLARS, LIMIT ALL CREDITS FOR INVESTMENTS MADE BEFORE JULY 1, 1998, TO NO MORE THAN 11 FIFTY PERCENT OF THE TAX LIABILITY, AND TO MAKE OTHER TECHNICAL CHANGES. 12 13 I.A. (1) Section 12-6-1140(3) of the 1976 Code, as added by Act 76 of 1995, is amended to read: 14 15 "(3) a deduction for retirement income as provided in Section 12-6-1170;" 16 (2) Section 12-6-1140 of the 1976 Code, as last amended by Section 2, Part II of Act 155 of 1997, is further amended by deleting 17 item (9) which reads: 18 19 "(9) South Carolina taxable income received by a resident individual taxpayer who before or during the applicable taxable 20 year has attained the age of sixty-five. If a married taxpayer eligible for this deduction files a joint federal income tax return with a 21 spouse who is not eligible for this deduction, then their joint income must be allocated between them on a pro-rata basis in the manner 22 the department shall provide." 23 24 B. Section 12-6-1170 of the 1976 Code, as added by Act 76 of 1995, is amended to read: 25 26 "Section 12-6-1170. (A)(1) An individual is allowed an annual deduction from South Carolina taxable income for of not 27 more than three thousand dollars of retirement income received as follows: 28 (1) For taxable years after 1992, and beginning on the first taxable year a taxpayer receives retirement income, the taxpayer may: 29 (a) deduct up to three thousand dollars of retirement income that is included in South Carolina taxable income; or 30 (b) irrevocably elect to defer the annual retirement income deduction until the taxable year in which the taxpayer reaches 31 age sixty-five. Beginning in the year in which the taxpayer reaches age sixty-five, the taxpayer may deduct up to not more than ten 32 thousand dollars of retirement income that is included in South Carolina taxable income. 33 (2) Taxpayers are deemed to have made the election provided in subitem (1)(b) and may deduct up to ten thousand dollars of 34 retirement income included in South Carolina taxable income if: 35 (a) the taxpayer does not claim a retirement income deduction before the taxable year he reaches age sixty-five; or
PART II PAGE 577 1 (b) the taxpayer reaches age sixty-five before 1994. 2 (3) As used in this section, all references to age sixty-five apply to taxpayers born before 1943. For taxpayers born in 1943 3 through 1959, the applicable age for determining the retirement income deduction is age sixty-six and age sixty-seven for taxpayers 4 born after 1959. 5 (4) (2) The term retirement income', as used in this section subsection, means the total of all otherwise taxable income not 6 subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from 7 qualified retirement plans which include those plans defined in Internal Revenue Code Sections 401, 403, 408, and 457, and all public 8 employee retirement plans of the federal, state, and local governments, including military retirement. 9 (5)(3) A surviving spouse receiving retirement income that is attributable to the deceased spouse shall apply this deduction 10 in the same manner that the deduction applied to the deceased spouse. If the surviving spouse also has another retirement income, an 11 additional retirement exclusion is allowed. 12 (6)(4) The department shall prescribe the method of making the election to defer the retirement income deduction and may 13 require the taxpayer to provide information necessary for proper administration of this election subsection. 14 (B) Beginning for the taxable year during which a resident individual taxpayer attains the age of sixty-five years, the resident 15 individual taxpayer is allowed a deduction from South Carolina taxable income received in an amount not to exceed eleven thousand 16 five hundred dollars reduced by any amount the taxpayer deducts pursuant to subsection (A) not including amounts deducted as a 17 surviving spouse. If married taxpayers eligible for this deduction file a joint federal income tax return, then the maximum deduction 18 allowed is eleven thousand five hundred dollars in the case when only one spouse has attained the age of sixty-five years and 19 twenty-three thousand dollars when both spouses have attained such age." 20 21 C. Notwithstanding the provisions of Section 12-54-85(F) of the 1976 Code relating to the timeliness of claims for refund, for taxable 22 year 1994 only, the period within which such claims are timely filed is extended through April 15, 1999, for taxpayers filing a claim 23 based on their not having made the irrevocable election provided under Section 12-6-1170 of the 1976 Code prior to its amendment by 24 this section. 25 26 D. This part is effective for taxable years beginning after 1997. 27 28 II.A. Section 12-14-40 of the 1976 Code, as added by Act 25 of 1995, is amended to read: 29 30 "Section 12-14-40. (A) The designation of an area as an economic impact zone must be made by the State Budget and Control 31 Board. It remains in effect during the period beginning on the date the board designates the area an economic impact zone and ending 32 on the earlier of: 33 (1) December thirty-first of the fifteenth calendar year following the calendar year in which the designation occurs, or 34 (2) a termination date designated by legislative enactment of the General Assembly.
PART II PAGE 578 1 (B) A designation may be revoked by the General Assembly only after a hearing on the record in which officials of the county or 2 municipality involved may participate." 3 4 B. Section 12-14-60 of the 1976 Code, as amended by Act 151 of 1997, is further amended to read: 5 6 "Section 12-14-60. (A) (1) There is allowed as a an economic impact zone investment tax credit against the tax imposed pursuant 7 to Chapter 7 6 of this title an economic impact zone investment tax credit for any taxable year in which the taxpayer places in service 8 an amount equal to five percent of the aggregate bases of economic impact zone qualified manufacturing and productive equipment 9 properties property. placed in service during such taxable year in the economic impact zone. 10 (2) The amount of the credit allowed by this section is equal to the aggregate of: 11 12 three-year property one percent of total aggregate bases for all three-year property that qualifies; 13 five-year property two percent of total aggregate bases for all five-year property that qualifies; 14 seven-year property three percent of total aggregate bases for all seven-year property that 15 qualifies; 16 ten-year property four percent of total aggregate bases for all ten-year property that qualifies; 17 fifteen-year property five percent of total aggregate bases for all fifteen-year or greater property 18 or greater that qualifies. 19 20 For purposes of this section, whether property is three-year property, five-year property, seven-year property, ten-year property, or 21 fifteen-year property is determined based on the applicable recovery period for such property under Section 168(e) of the Internal 22 Revenue Code. 23 (B) For purposes of this section: 24 (1) economic impact zone qualified manufacturing and productive equipment property' means any property: 25 (a) which is used as an integral part of manufacturing, or production, or used as an integral part of extraction of or 26 furnishing transportation, communications, electrical energy, gas, water, or sewage disposal services in the economic impact zone; 27 (b) which is tangible property to which Section 168 of the Internal Revenue Code applies; 28 (c) which is Section 1245 property (as defined in Section 1245(a)(3)of the Internal Revenue Code); and 29 (d)(i) the construction, reconstruction, or erection of which is completed by the taxpayer in the economic impact zone; 30 or 31 (ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer inside the 32 economic impact zone. 33 (2) In the case of any computer software which is used to control or monitor a manufacturing or production process inside the 34 economic impact zone and with respect to which depreciation (or amortization in lieu of depreciation) is allowable, the software must 35 be treated as qualified manufacturing and productive equipment property.
PART II PAGE 579 1 (C) This section does not apply to any property to which the other tax credits would apply unless the taxpayer elects to waive the 2 application of the other credits to the property. 3 (D) Unused credit allowed pursuant to this section may be carried forward for ten years from the close of the tax year in which the 4 credit was earned. 5 (E) If during any taxable year and before the end of applicable recovery period for such property as determined under Section 6 168(e) of the Internal Revenue Code, the taxpayer disposes of or removes from the economic impact zone, economic impact zone 7 qualified manufacturing and productive equipment property, then the tax due under Chapter 6 by the taxpayer for the current taxable 8 year must be increased by the full amount of any credit claimed in prior years with respect to such property. 9 (F) For South Carolina income tax purposes, the basis of the economic impact zone qualified manufacturing and productive 10 equipment property must be reduced by the amount of any credit claimed with respect to the property. If a taxpayer is required to 11 recapture the economic impact zone investment tax credit in accordance with subsection (E), the taxpayer may increase the basis of 12 the property by the amount of any basis reduction attributable with claiming the economic impact zone investment tax credit in prior 13 years. The basis must be increased in the year in which the credit is recaptured. 14 (G) The credit allowed by this section for investments made after June 30, 1998, is limited to no more than one million dollars for 15 any entity subject to the license tax as provided in Section 12-20-100. 16 (H) Credits claimed under this section for taxable years beginning after 1997 for investments made before July 1, 1998, may not 17 reduce a taxpayer's state income tax liability by more than fifty percent." 18 19 C. This part is effective for any qualifying investments made after June 30, 1998. However, Section 12-14-60(H) of the 1976 Code, 20 as added by this part, is effective as provided in the text of that subsection. 21 22 SECTION 50 23 24 TO AMEND TITLE 2 OF THE 1976 CODE, RELATING TO THE GENERAL ASSEMBLY, BY ADDING CHAPTER 75 SO 25 AS TO ESTABLISH THE JOINT LEGISLATIVE COMMITTEE ON TAX AND REVENUE POLICY AND PROVIDE FOR 26 ITS MEMBERSHIP, POWERS, AND DUTIES; AND TO REPEAL CHAPTER 41 OF TITLE 2 RELATING TO THE TAX 27 STUDY COMMISSION. 28 29 A. Title 2 of the 1976 Code is amended by adding: 30 31 "CHAPTER 75 32 33 Joint Legislative Committee 34 on Tax and Revenue Policy 35
PART II PAGE 580 1 Section 2-75-5. There is established the Joint Legislative Committee on Tax and Revenue Policy composed of ten members, three 2 appointed by the President Pro Tempore of the Senate from the membership of the Senate, three appointed by the Speaker of the 3 House of Representatives from the membership of the House, and four nonlegislative members, two each appointed by the President 4 Pro Tempore and the Speaker. Members shall serve at the pleasure of their appointing authority. Legislative members serve ex 5 officio. 6 7 Section 2-75-15. The joint committee shall: 8 (1) make a detailed and careful study of the revenue laws of the State, together with all other laws of the State which have a 9 bearing upon the study of the revenue laws, and make recommendations to the General Assembly; 10 (2) provide for the revision of revenue laws so as to provide a more easily understandable and workable system of revenue laws 11 for the State; 12 (3) recommend changes in the basic tax structure of the State and in the rates of taxation, together with predicted revenue effects 13 of the charges together with proposed alternate sources of revenue, to the end that our revenue system may be stable and equitable, 14 and yet so fair when compared with the tax structures of other states, that business enterprises and persons would be encouraged by 15 the economic impact of the South Carolina revenue laws to move themselves and their business enterprises into the State; 16 (4) recommend study of alternate sources of revenue found in the tax structures of other states, and particularly in the other 17 southeastern states, and make a report of the economic impact of the South Carolina tax structure upon the business enterprises of 18 various types of industry, as compared with those of other southeastern states; 19 (5) make recommendations for long range revenue planning, and for future amendments of the revenue laws of South Carolina; 20 and 21 (6) make a detailed study of the state's use of federal and other funds' and make findings and recommendations to the General 22 Assembly. 23 24 Section 2-75-25. The joint committee may: 25 (1) hold public hearings; 26 (2) receive testimony of any employees of the State or any other witnesses who may assist the commission in its duties; and 27 (3) call for assistance in the performance of its duties from any employees or agencies of the State or any of its political 28 subdivisions. 29 30 Section 2-75-35. Professional and clerical services for the joint committee must be made available from the staffs of the 31 General Assembly, the Department of Revenue, and other state agencies and institutions. 32 33 Section 2-75-45. The joint committee shall make reports and recommendations to the General Assembly and the Governor. 34 These findings and recommendations must be published and made available to the public." 35
PART II PAGE 581 1 B. Chapter 41, Title 2 of the 1976 Code is repealed. 2 3 C. This section takes effect July 1, 1998. 4 5 SECTION 51 6 7 TO AMEND SECTIONS 1-23-500, 9-8-10, AND 9-8-50, OF THE 1976 CODE, RELATING TO THE CREATION OF THE 8 OFFICE OF ADMINISTRATIVE LAW JUDGE AND DEFINITIONS AND CREDITED SERVICE FOR PURPOSES OF 9 THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO INCLUDE ADMINISTRATIVE LAW 10 JUDGES IN THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS. 11 12 A. Section 1-23-500(A) of the 1976 Code, as amended by Act 452 of 1994, is further amended to read: 13 14 "(A) There is created the South Carolina Administrative Law Judge Division, which is an agency of the executive branch of the 15 government of this State. Effective March 1, 1994, The division shall initially consist consists of three administrative law judges and 16 shall consist of a total of six administrative law judges, effective on February 1, 1995. The administrative law judges shall be part of 17 the state employees retirement system." 18 19 B. Section 9-8-10(16) of the 1976 Code is amended to read: 20 21 "(16) Judge' means a justice of the Supreme Court, or a judge of the court of appeals, circuit or family court, or of the 22 Administrative Law Judge Division of the State of South Carolina this State." 23 24 C. Section 9-8-50(1) of the 1976 Code is amended to read: 25 26 "(1) The credited service of a member shall include includes all service as a judge or solicitor since he last became a member 27 of the System and in respect of which he makes contributions to the System. For a judge of the Administrative Law Judge Division, 28 credited service also includes all service as a judge since last becoming a member of the South Carolina Retirement System and in 29 respect of which he made contributions to that system. It shall also include includes, in the case of a member of the System who 30 remained a member continuously until his death or his retirement under the System, service which he was, or would be, entitled to 31 claim as creditable service under any other retirement system of the State of South Carolina, notwithstanding that he may not have 32 been a member of such retirement system if, within twelve months of the date he becomes a member of the System, the full amount of 33 his contributions required to be made under the other system in respect of such service shall be is paid to this System by transfer or 34 otherwise. Such This amount shall must not be less than the amount that the member would have contributed with respect to his 35 position had he been a member of this System for the same period of time, plus interest.
PART II PAGE 582 1 On or after July 1, 1980, the Board may determine the contributions required by this section but it shall not be less than four 2 percent of the annual compensation of the position at the time of payment for each year of service." 3 4 D.1. The first paragraph of subsection (1) of Section 9-8-60 of the 1976 Code, as last amended by Act 497 of 1994, are further 5 amended to read: 6 7 "(1) A member of the system may retire upon written application to the board setting forth at what time, not later than his 8 attaining age seventy-two and not more than ninety days prior nor more than six months subsequent to the execution and filing 9 thereof, the member desires to be retired, if the member at the time so specified for retirement is no longer in the service of the State, 10 except as a member of the General Assembly, and has completed ten years of credited service as a judge or eight years of credited 11 service as a solicitor or was in service as a judge or solicitor on July 1, 1984, and has either attained the age of sixty-five and 12 completed at least twenty years of credited service, or attained age seventy and completed at least fifteen years of credited service, or 13 attained age sixty-five with at least four years' service in the position and has at least twenty-five years' other service with the State, or 14 completed at least twenty-five years of credited service regardless of age. A solicitor is eligible to retire upon completion of 15 twenty-four years of credited service regardless of age. Except as provided below, a person is not eligible to receive a retirement 16 allowance under this system while under employment covered by the South Carolina Retirement System, and the South Carolina 17 Police Officers Retirement System." 18 19 E. In the case of a solicitor, for purposes of calculating the additional monthly retirement allowance pursuant to Section 9-08-60(5) 20 of the 1976 Code, any credited service rather than only active service in excess of twenty-four years must be included as long as the 21 credited service is established before July 1, 2001. 22 23 F. Section 9-11-90 of the 1976 Code, as last amended by Act 189 of 1989, is further amended by adding: 24 25 "(5) Notwithstanding the provisions of subsection (3), a retired member who has been restored to active employment by 26 virtue of election to the office of sheriff is restored as a member of the system upon taking office and electing to cease receiving a 27 retirement allowance. Credited service to which the sheriff was entitled when he retired is restored to the sheriff and upon subsequent 28 retirement the allowance must be based on the sheriff's compensation and credited service before and after the period of prior 29 retirement. The allowance must not be less than the amount of his allowance previously payable plus any increases which would have 30 been payable under Section 9-11-310 had he not been restored to service." 31 32 G. Subsections A, B, C, D, and E take effect July 1, 1998. Subsection F takes effect upon approval by the Governor but applies only 33 with respect to service credit earned pursuant to active service as a sheriff on and after that date. 34 35
PART II PAGE 583 1 SECTION 52 2 3 DELETED 4 5 SECTION 53 6 7 DELETED 8 9 SECTION 54 10 11 DELETED 12 13 SECTION 55 14 15 TO AMEND SECTION 12-56-20, AS AMENDED, OF THE 1976 CODE, RELATING TO DEFINITIONS FOR PURPOSES OF 16 THE SETOFF DEBT COLLECTION ACT WHICH ALLOWS THE DEPARTMENT OF REVENUE TO SET OFF TAX 17 REFUNDS AGAINST CERTAIN DEBTS OR DELINQUENT ACCOUNTS, SO AS TO INCLUDE THE SOUTH CAROLINA 18 STUDENT LOAN CORPORATION WITHIN THE DEFINITION OF A "CLAIMANT AGENCY"; AND TO AMEND SECTION 19 12-56-60, RELATING TO NOTIFICATION TO DEBTORS BY A CLAIMANT AGENCY OF INTENT TO SEEK A SETOFF 20 OF A REFUND, SO AS TO REVISE THE MANNER IN WHICH THE NOTICE MUST BE PROVIDED. 21 22 A. Section 12-56-20(1) of the 1976 Code, as last amended by Act 347 of 1996, is further amended to read: 23 24 "(1) Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political 25 subdivision, South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 26 31, and the Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to 27 default on authorized educational loans made pursuant to Chapters 111, 113, or 115 of Title 59. Political subdivision' includes the 28 Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf 29 of their members or other political subdivisions." 30 31 B. Section 12-56-60(A) of the 1976 Code, as added by Act 76 of 1995, is further amended to read: 32 "(A) A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the department in writing and 33 supply information the department determines necessary to identify the debtor whose refund is sought to be set off. A request for setoff 34 may be made only after the claimant agency has notified the debtor of its intention to cause the debtor's refund to be set off. This notice 35 must be given in person, left at the dwelling or usual place of business of the debtor, or sent by certified or registered United States mail
PART II PAGE 584 1 to the debtor's last known address no less than thirty days before the claimant agency's request to the department. The notice shall include 2 a statement which sets forth administrative appeal procedures available to the debtor and alternatives available to the debtor which could 3 prevent setoff. The claimant agency promptly shall notify the debtor when the liability out of which the setoff arises is satisfied. 4 Notification to the department and the furnishing of identifying information must occur on or before a date specified by the department 5 in the year preceding the calendar year during which the refund would be paid. Additionally, subject to the notification deadline specified 6 above, the notification is effective only to initiate setoff for claims against refunds that would be made in the calendar year subsequent 7 to the year in which notification is made to the department." 8 9 C. This section takes effect upon approval by the Governor. 10 11 SECTION 56 12 13 TO AMEND SECTION 59-107-90, AS AMENDED, OF THE 1976 CODE, RELATING TO THE MAXIMUM AMOUNT OF 14 OUTSTANDING STATE INSTITUTION BONDS, SO AS TO INCREASE THE MAXIMUM AMOUNT OF SUCH BONDS. 15 16 Section 59-107-90 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read: 17 18 "Section 59-107-90. Notwithstanding any other provision of this chapter, there must not be outstanding at any given time state 19 institution bonds for all institutions in excess of ninety one hundred twenty million dollars except that in computing this debt limitation, 20 all bonds defeased pursuant to Section 59-107-200 must be deducted from the aggregate of state institution bonds outstanding at the time." 21 22 SECTION 57 23 24 DELETED 25 26 SECTION 58 27 28 TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF STATE CAPITAL IMPROVEMENT 29 BONDS, SO AS TO AUTHORIZE ADDITIONAL PROJECTS AND CONFORM THE AGGREGATE PRINCIPAL 30 INDEBTEDNESS AMOUNT TO THE ADDITIONAL AMOUNTS AUTHORIZED ABOVE. 31 32 (A) Notwithstanding any other provision of law, item (f) of Section 3 of Act 1377 of 1968, as last amended by Section 1 of Act 111 33 of 1997 is further amended by adding: 34 35 "1. Department of Education -
PART II PAGE 585 1 (a) School Buses 4,000,000 2 Of the funds authorized herein for school buses, one new school bus shall be provided by the 3 Department of Education to the John De La Howe School and one new bus shall be provided to 4 the South Carolina School for the Deaf and the Blind. 5 (b) Governor's School for Math and Science - New Campus Mill Renovation Phase III 3,000,000 6 7 2. School for the Deaf and the Blind - Facility Renovations and Equipment Upgrade 1,650,000 8 9 3. Higher Education Institutions 10 (a) Clemson University - Littlejohn Coliseum Renovations 3,000,000 11 (b) University of Charleston - Arena 10,000,000 12 (c) Coastal Carolina - Humanities Building 2,825,000 13 (d) Francis Marion - 14 (1) Energy Facility Upgrade 524,750 15 (2) Deferred Maintenance 1,475,250 16 (e) Lander - Communications Infrastructure 988,000 17 (f) South Carolina State University - 18 (1) Hodge Hall Renovation 1,600,000 19 (2) Lowman Hall Renovation 5,000,000 20 (3) Deferred Maintenance 4,500,000 21 (g) University of South Carolina Columbia - 22 (1) Arena 2,500,000 23 (2) School of Public Health 3,500,000 24 (h) Medical University of South Carolina - Hollings Cancer Institute 9,000,000 25 (i) Chesterfield-Marlboro Technical College - Roof Repair 250,000 26 (j) Greenville Technical College- University Center of Greenville Renovation 900,000 27 (k) Horry-Georgetown Technical College - Library and Student Services Center 5,700,000 28 (l) Tri-County Technical College - Health/Science Building Renovation 1,500,000 29 (m) Trident Technical College - Electro-Mechanical Laboratory 800,000 30 31 4. Department of Health and Environmental Control - Grand Strand Beach Renourishment 2,000,000 32 33 The funds authorized for the Grand Strand Beach Renourishment Project shall not be expended until the 34 Department of Health & Environmental Control certifies that the required funds from local governments for 35 construction of the Grand Strand Beach Renourishment Project are available for expenditure.
PART II PAGE 586 1 5. Department of Mental Health - Kershaw Mental Health Facility 2,400,000 2 3 6. Commission for the Blind - 4 (a) Industry Training Building Renovations 500,000 5 (b) Cafeteria Renovations 400,000 6 7 7. State Library - 8 (a) Cherokee County Library 500,000 9 (b) State Library - Dillon Library 999,900 10 11 8. Arts Commission - Columbia Museum of Art 1,000,000 12 13 9. Forestry Commission - HVAC and Roof Repairs 278,000 14 15 10. Department of Agriculture - Spartanburg Farmer's Market 20,000 16 17 11. Clemson PSA - Agriculture and Life Sciences Complex 4,000,000 18 19 12. Department of Natural Resources - Wildlife/Freshwater Fisheries: Florence Renovation 500,000 20 21 13. Parks, Recreation and Tourism - 22 (a) Senior Center Expansion/Building Renovation 50,000 23 (b) Lexington Equestrian Center 200,000 24 (c) Lake Ashwood 50,000 25 (d) State Parks Emergency Repairs 1,606,000 26 (e) Columbia Conference Center 27 (f) Gayle Village Project 250,000 28 2,000,000 29 30 14. Department of Commerce - 31 (a) Lake Marion Regional Water Agency 2,000,000 32 (b) Spartanburg Renaissance Project - Downtown Redevelopment 2,000,000 33 Of funds authorized to the Department of Commerce for the Spartanburg Renaissance Project, the funds 34 must be matched two-to-one with additional funds or in-kind contributions by the community or other 35 entity equal to the amount of funds authorized herein.
PART II PAGE 587 1 (c) Williamsburg County Industrial Park 1,000,000 2 (d) Hartsville Airport Terminal Renovation 150,000 3 (e) Aiken County Langley Pond Olympic Project 500,000 4 5 15. Budget and Control Board - 6 (a) Korean War Memorial 200,000 7 (b) State Ports Authority 16,000,000 8 101,316,000" 9 10 (B) Section 4 of Act 1377 of 1968, as last amended by Act 111 of 1997, is further amended to read: 11 12 "Section 4. The aggregate principal indebtedness on account of bonds issued pursuant to this act may not exceed 13 $2,146,199,526.10 $2,247,516,426.10. The limitation imposed by the provisions of this section does not apply to bonds issued on behalf 14 of the Mental Health Commission as provided in Acts 1276 and 1272 of 1970 or to bonds issued on behalf of the Commission on Mental 15 Retardation as provided in Act 1087 of 1970 or to bonds issued on behalf of the South Carolina Fire Academy. The limitation imposed 16 by the provisions of this section is not considered to be an obligation of the contract made between the State and holders of bonds issued 17 pursuant to this act, and the limitation imposed by the provisions of this section may be enlarged by acts amending it or reduced by the 18 application of the Capital Reserve Fund or by amendments of this act. Within these limitations state capital improvement bonds may be 19 issued under the conditions prescribed by this act." 20 21 (C) For purposes of construction of this section, the items herein above set forth do not constitute an appropriation of money out of 22 the State Treasury. This provision does; however, establish an authorization for debt to be issued. 23 24 (D) This section takes effect upon approval by the Governor. 25 26 SECTION 59 27 28 TO AMEND SECTION 59-118-30 OF THE 1976 CODE, RELATING TO DEFINITIONS FOR PURPOSES OF THE SOUTH 29 CAROLINA ACADEMIC ENDOWMENT INCENTIVE ACT OF 1997, SO AS TO EXTEND ELIGIBILITY FOR THE 30 INCENTIVE TO TECHNICAL COLLEGES. 31 32 A. Section 59-118-30(1) of the 1976 Code, as added by Act 155 of 1997, is amended to read: 33
PART II PAGE 588 1 "(1) Qualifying college or university' means a state-supported, post-secondary, four-year educational institution offering 2 undergraduate, master, or doctoral degree programs and also includes a technical college under the jurisdiction of the State Board for 3 Technical and Comprehensive Education." 4 5 B. This section takes effect July 1, 1998. 6 7 SECTION 60 8 9 TO AMEND SECTION 12-43-220 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX 10 CLASSIFICATIONS AND ASSESSMENT RATIOS, SO AS TO PROVIDE THAT IF A CHANGE IN PROPERTY OWNERSHIP 11 OCCURS AND THE NEW OWNER DOES NOT QUALIFY FOR THE FOUR PERCENT RESIDENTIAL PROPERTY 12 ASSESSMENT RATIO, THE SIX PERCENT ASSESSMENT RATIO SHALL APPLY TO THE PROPERTY ONLY FOR THE 13 PORTION OF THE TAX YEAR IN WHICH THE PROPERTY IS OWNED BY THE NEW OWNER; AND TO EXTEND THE 14 TIME BY WHICH A WRITTEN NOTICE OF OBJECTION TO AN ASSESSMENT RATIO MUST BE FILED FOR THE 1997 15 TAX YEAR. 16 17 A. Section 12-43-220(c)(2)(vi) of the 1976 Code is amended to read: 18 "(vi) No further applications are necessary from the current owner while the property for which the initial application was made 19 continues to meet the eligibility requirements. If a change in ownership occurs, another application is required. The owner shall notify 20 the assessor of any change in classification within six months of the change. If a change in ownership occurs and the new owner does not 21 qualify for the four percent assessment ratio, the six percent assessment ratio shall apply to the property only for the portion of the tax year 22 in which the property is owned by the new owner. For the portion of the tax year in which the person qualifying for the four percent 23 assessment ratio owned the property, the four percent assessment ratio shall apply." 24 25 B. (A) For purposes of Article 9, Chapter 60, Title 12, the time by which the written notice of objection to the assessment ratio 26 used for the assessment of property taxes for the 1997 tax year is hereby extended until a period ending forty days after the effective date 27 of this act for a taxpayer who paid taxes for the 1997 property tax year at the six percent assessment ratio on property which qualified for 28 the four percent assessment ratio on December 31, 1996, but which lost its status as the current owner's residence because of a change 29 in ownership. 30 (B) The Department of Revenue and Taxation shall place a notice in newspapers of general circulation in this State notifying 31 taxpayers of the provisions of this section. The department shall also provide written notification to each county assessor and county 32 auditor. 33
PART II PAGE 589 1 SECTION 61 2 3 TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO 4 EXEMPTIONS FROM SALES TAX, SECTION 27-32-170, RELATING TO EXEMPTION FROM SALES TAX OF SALE OF 5 A VACATION TIME SHARING PLAN, AND SECTION 27-32-250, AS AMENDED, RELATING TO EXEMPTION FROM 6 SALES TAX OF SALE OF A VACATION MULTIPLE OWNERSHIP INTEREST, ALL SO AS TO EXEMPT FROM SALES 7 TAX THE SALE OR RESALE OR THE EXCHANGE OF AN INTEREST IN A VACATION TIME SHARING PLAN AND A 8 VACATION MULTIPLE OWNERSHIP INTEREST. 9 10 A. Section 12-36-2120(31) of the 1976 Code is amended to read: 11 12 "(31) vacation time sharing lease plans, vacation multiple ownership interests, and exchanges of interests in them as provided 13 by Chapter 32 of Title 27;" 14 15 B. Section 27-32-170 of the 1976 Code is amended to read: 16 17 "Section 27-32-170. The gross proceeds from the sale or resale of any a vacation time sharing lease plan and the exchange of 18 an interest in a vacation time sharing plan shall be are exempt from sales tax imposed by Chapter 36 of Title 12 under pursuant to the 19 provisions of Section 12-36-2120." 20 21 C. Section 27-32-250(2) of the 1976 Code is amended to read: 22 23 "(2) The sale or resale of a vacation multiple ownership interest and the exchange of an interest in a vacation multiple 24 ownership interest for any interest in the same or another vacation multiple ownership interest is exempt from sales tax imposed by Chapter 25 36 of Title 12 in the manner provided by Section 27-32-170." 26 27 D. (A) Section 12-43-230(d) of the 1976 Code, as last amended by Act 403 of 1996, is further amended to read: 28 29 "(d) For purposes of this article, homeowners' association property' means real and personal property owned by a 30 homeowners' association if: 31 (1) property owned by the homeowners' association is held for the use, benefit, and enjoyment of members of the 32 homeowners' association; 33 (2) each member of the homeowners' association has an irrevocable right to use and enjoy on an equal basis, property 34 owned by the homeowners' association, subject to any restrictions imposed by the instruments conveying the right or the rules, regulations, 35 or bylaws of the homeowners' association; and
PART II PAGE 590 1 (3) each irrevocable right to use and enjoy property owned by the homeowners' association is appurtenant to taxable 2 real property owned by a member of the homeowners' association. 3 Notwithstanding any other provision of this subsection, homeowners' association property shall not be construed so as to include 4 a golf course. Subject to making the appropriate application pursuant to this subsection, a homeowners' association may designate one 5 or any number of its qualifying tracts or parcels as homeowners' association property for purposes of the special valuation contained in 6 Section 12-43-227. 7 As used in this subsection, homeowners' association' means an organization which is organized and operated to provide for the 8 acquisition, construction, management, and maintenance of property. 9 Homeowners' association property does not come within the provisions of this subsection unless the owners of the real property 10 or their agents make a written application therefor for it on or before the first penalty date for taxes due for the first tax year in which the 11 special valuation is claimed. The application may be with respect to one or any number of tracts or parcels owned by the homeowners' 12 association. The application for the special valuation must be made to the assessor of the county in which the special valuation property 13 is located, on forms provided by the county and approved by the department which includes the reporting of nonqualified gross receipts, 14 and failure to apply constitutes a waiver of the special valuation for that year. No additional annual filing is required while the property 15 remains homeowners' association property and the ownership remains the same, unless the nonqualified gross receipts within the meaning 16 of Section 12-43-227 for the most recent completed tax year either (i) exceed the amount of nonqualified gross receipts with respect to 17 the property reported on the most recently filed application by ten percent or more or (ii) are less than ninety percent of the amount of 18 nonqualified gross receipts with respect to the property reported on the most recently filed application. In such a that case, the owners of 19 the real property or their agents must make additional written application with respect to the property and report the change in nonqualified 20 gross receipts." 21 22 E. This section applies to property tax years beginning after 1997. 23 24 SECTION 62 25 26 TO AMEND SECTION 12-8-520 OF THE 1976 CODE, RELATING TO INCOMES SUBJECT TO WITHHOLDING, SO AS TO 27 EXCLUDE WAGES OF SEVEN THOUSAND FIVE HUNDRED DOLLARS OR LESS A YEAR PAID TO A DISABLED 28 PERSON EMPLOYED IN A PROGRAM APPROVED BY THE DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS. 29 30 A. Section 12-8-520(D) of the 1976 Code, as added by Act 76 of 1995, is amended by adding: 31 32 "(11) for services performed by a disabled person: 33 (a) as defined by the Department of Disabilities and Special Needs; 34 (b) employed in a program approved by the Department of Disabilities and Special Needs; and 35 (c) with a projected income of seven thousand five hundred dollars a year, or less."
PART II PAGE 591 1 B. This section is effective for taxable years beginning after 1998. 2 3 SECTION 63 4 5 TO AMEND ARTICLE 5, CHAPTER 1, TITLE 6, OF THE 1976 CODE, RELATING TO LOCAL ACCOMMODATIONS TAX, 6 BY ADDING SECTION 6-1-570 AND ARTICLE 7, CHAPTER 1, TITLE 6, RELATING TO LOCAL HOSPITALITY TAX, BY 7 ADDING SECTION 6-1-770 BOTH SO AS TO REQUIRE REMITTANCE OF THE TAX DUE TO THE LOCAL GOVERNING 8 BODY ON A MONTHLY BASIS WHEN THE ESTIMATED AMOUNT OF AVERAGE TAX IS MORE THAN FIFTY 9 DOLLARS A MONTH, ON A QUARTERLY BASIS WHEN THE ESTIMATED AMOUNT OF AVERAGE TAX IS TWENTY- 10 FIVE DOLLARS TO FIFTY DOLLARS A MONTH, AND ON AN ANNUAL BASIS WHEN THE ESTIMATED AMOUNT OF 11 AVERAGE TAX IS LESS THAN TWENTY-FIVE DOLLARS A MONTH. 12 13 A. Article 5, Chapter 1, Title 6 of the 1976 Code, as added by Act 138 of 1997, is amended by adding: 14 15 "Section 6-1-570. The tax provided for in this article must be remitted to the local governing body on a monthly basis when 16 the estimated amount of average tax is more than fifty dollars a month, on a quarterly basis when the estimated amount of average tax is 17 twenty-five dollars to fifty dollars a month, and on an annual basis when the estimated amount of average tax is less than twenty-five 18 dollars a month." 19 20 B. Article 7, Chapter 1, Title 6 of the 1976 Code, as added by Act 138 of 1997, is amended by adding: 21 22 "Section 6-1-770. The tax provided for in this article must be remitted to the local governing body on a monthly basis when 23 the estimated amount of average tax is more than fifty dollars a month, on a quarterly basis when the estimated amount of average tax is 24 twenty-five dollars to fifty dollars a month, and on an annual basis when the estimated amount of average tax is less than twenty-five 25 dollars a month." 26 27 C. This section takes effect July 1, 1998. 28 29 SECTION 64 30 31 TO AMEND SECTION 44-56-460 OF THE 1976 CODE RELATING TO ESTABLISHING REHABILITATION PRIORITIES 32 AT CONTAMINATED DRYCLEANING FACILITIES, SO AS TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND 33 ENVIRONMENTAL CONTROL MAY NOT EXPEND FROM THE DRYCLEANING FACILITY RESTORATION FUND 34 MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS ANNUALLY FOR INVESTIGATION AND 35 REHABILITATION ACTIVITIES, AND TO AMEND SECTION 44-56-470 RELATING TO ANNUAL DRYCLEANING
PART II PAGE 592 1 FACILITY REGISTRATION FEES, SO AS TO EXTEND FROM DECEMBER 1, 1996 TO JULY 1, 1999 THE TIME WITHIN 2 WHICH A FACILITY OWNER OR OPERATOR MUST DEMONSTRATE COMPETENCY TO OPERATE A FACILITY AND 3 MUST INSTALL DIKES OR OTHER CONTAINMENT STRUCTURES AROUND EQUIPMENT. 4 5 A. Section 44-56-460(C) of the 1976 Code, as added by Act 119 of 1995, is amended to read: 6 7 "(C) The department may not expend more than two hundred fifty thousand dollars from the fund yearly more than five percent 8 of the average collected annual balance of the fund annually to pay for the costs at any one eligible site for the activities described in 9 Section 44-56-420(B)." 10 11 B. Section 44-56-470(D) and (E) of the 1976 Code, as added by Act 119 of 1995, is amended to read: 12 13 "(D) Before December 1, 1996 July 1, 1999, an owner or operator of a drycleaning facility or person shall receive certification 14 from the International Fabricare Institute, the Neighborhood Cleaners Association, or some other comparable nationally recognized 15 drycleaning industry association certifying that the operator has demonstrated a level of competency to operate a drycleaning facility in 16 accordance with the highest standards of the drycleaning industry. 17 (E) Before January 1, 1997 July 1, 1999, an owner or operator of a drycleaning facility or person shall install dikes or other 18 containment structures around each machine or item of equipment in which drycleaning solvents are used and around an area in which 19 solvents or waste containing solvents are stored. The dikes or containment structures must be capable of containing one-third of the 20 capacity of the total tank capacity of each machine. To the extent practicable, an owner of a drycleaning facility or person shall seal or 21 otherwise render impervious those portions of all diked floor surfaces upon which any drycleaning solvents may leak, spill, or otherwise 22 be released." 23 24 SECTION 65 25 26 TO AMEND SECTION 12-36-2120 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS 27 FROM SALES TAX, SO AS TO EXEMPT AUTOMATIC TELLER MACHINE TRANSACTIONS FROM SALES TAX. 28 29 A. Section 12-36-2120(11) of the 1976 Code is amended by adding: 30 "(11)(a) toll charges for the transmission of voice or messages between telephone exchanges; 31 (b) charges for telegraph messages; and 32 (c) carrier access charges and customer access line charges established by the Federal Communications Commission 33 or the South Carolina Public Service Commission; and 34 (d) transactions involving automatic teller machines;"
PART II PAGE 593 1 SECTION 66 2 3 TO AMEND CHAPTER 3, TITLE 50 OF THE 1976 CODE, RELATING TO THE DEPARTMENT OF NATURAL 4 RESOURCES, BY ADDING ARTICLE 9 SO AS TO CREATE THE SOUTH CAROLINA JOCASSEE GORGES TRUST FUND. 5 6 Chapter 3, Title 50 of the 1976 Code is amended by adding: 7 8 "Article 9 9 10 Jocassee Gorges Trust Fund 11 12 Section 50-3-900. There is created the South Carolina Jocassee Gorges Trust Fund, the income and principal of which must 13 be used only for the purposes of supporting the operation and maintenance and the acquisition of additional real property complementary 14 to those tracts of real property owned by the South Carolina Department of Natural Resources in Oconee and Pickens Counties, South 15 Carolina, in the vicinity of Lake Jocassee which are known collectively as the Jocassee Gorges. All gifts, grants, and contributions for 16 this purpose must be accounted for separately from other assets of the fund. 17 18 Section 50-3-910. There is created the Board of Trustees of the Jocassee Gorges Trust Fund of the Department of Natural 19 Resources, with full authority over the administration of the fund, whose chairman and members are the chairman and members of the 20 board of the Department of Natural Resources. The State Treasurer is the custodian of the fund and shall invest its assets in accordance 21 with the provisions of Title 11 of the 1976 Code. 22 23 Section 50-3-920. The assets of the fund are derived from: 24 (1) the proceeds of any gifts, grants, and contributions to the State which are designated specifically for inclusion; 25 (2) other lawful sources. 26 27 Section 50-3-930. The fund constitutes a special trust derived from a contractual relationship between the State and the 28 members of the public whose investments contribute to the fund. In recognition of the special trust, the following limitations and 29 restrictions are placed on expenditures from the fund: 30 (1) Any limitations or restrictions specified by the donors on the uses of the income derived from the gifts, grants, 31 and voluntary contributions are respected but are not binding. 32 (2) After applying income received and accruing from the investments of gifts, grants, and contributions, the board 33 of trustees of the fund may liquidate and expend principal of the fund. 34 (3) The income received and accruing from the investments of the fund must be spent only to acquire additional real 35 property complementary to or protective of the Jocassee Gorges and in furthering the operation and maintenance of the Jocassee Gorges.
PART II PAGE 594 1 Section 50-3-940. The board may accumulate the investment income of the fund and may direct expenditures from the 2 income of the fund for the purposes set forth in Section 50-3-930(3). 3 4 Section 50-3-950. Expenditure of the income derived from the fund must be made through the board in accordance with the 5 provisions of the general appropriations act. The fund is subject to the oversight of the State Auditor. 6 7 Section 50-3-960. The fund and income do not take the place of state appropriations or department receipts placed in the 8 fund and must be used in accordance with Section 50-3-930(3). 9 10 Section 50-3-970. If the board of the Department of Natural Resources is dissolved, the succeeding agency shall assume the 11 trusteeship of the fund and is bound by all the limitations and restrictions placed by this article on expenditures from the fund. 12 13 Section 50-3-980. No land noted as Jocassee Gorges shall be sold, traded, leased, or mortgaged without the approval of the 14 South Carolina General Assembly." 15 16 SECTION 67 17 18 TO AMEND SECTION 1-11-720, AS AMENDED, OF THE 1976 CODE, RELATING TO ENTITIES ELIGIBLE TO 19 PARTICIPATE IN THE STATE HEALTH AND DENTAL INSURANCE PLANS, SO AS TO EXTEND ELIGIBILITY TO THE 20 SOUTH CAROLINA STATE EMPLOYEES' ASSOCIATION, THE PALMETTO STATE TEACHERS' ASSOCIATION, THE 21 SOUTH CAROLINA EDUCATION ASSOCIATION, THE SOUTH CAROLINA SCHOOL BOARDS ASSOCIATION, AND THE 22 SOUTH CAROLINA ASSOCIATION OF SCHOOL ADMINISTRATORS. 23 24 A. Section 1-11-720(A) of the 1976 Code, as last amended by Act 458 of 1996, is further amended by adding appropriately numbered 25 items at the end to read: 26 27 "( ) the South Carolina State Employees' Association; 28 ( ) the Palmetto State Teachers' Association; 29 ( ) the South Carolina Education Association; 30 ( ) the South Carolina School Boards Association; 31 ( ) the South Carolina Association of School Administrators." 32 B. This section takes effect July 1, 1998. 33
PART II PAGE 595 1 SECTION 68 2 3 TO PROVIDE FOR MAKING UP AN EDUCATION FINANCE ACT ALLOCATION UNDERPAYMENT TO A SCHOOL 4 DISTRICT RESULTING FROM AN ERROR IN INFROMATION SUBMITTED TO THE DEPARTMENT OF REVENUE FOR 5 SCHOOL YEAR 1997-98, TO REQUIRE THE UNDERPAYMENT TO BE MADE UP IN EFA DISTRIBUTIONS TO THE 6 DISTRICT OVER THE SUCCEEDING TWO SCHOOL YEARS, TO PROVIDE FOR EFA ALLOTMENT CALCULATIONS 7 DURING THE PAYBACK PERIOD, TO REQUIRE THE UNDERPAYMENT TO EXCEED ONE PERCENT FOR THE 8 DISTRICT TO BE ELIGIBLE FOR THE MAKEUP PAYMENT, AND TO REQUIRE ANY SCHOOL TAX LEVIED TO MAKE 9 UP THE UNDERPAYMENT TO BE TAKEN INTO ACCOUNT BY A CORRESPONDING REDUCTION IN THE TAX LEVY 10 REFLECTING THE AMOUNT OF MAKEUP FUNDS RECEIVED IN A SUBSEQUENT YEAR. 11 12 A. "An Education Finance Act (EFA) underpayment to a school district resulting from an error in the information provided to the 13 Department of Revenue for the purposes of calculating the index of taxpaying ability for the 1997-98 school year must be made up in EFA 14 distributions to the district over two years, beginning with the 1998-99 school year distribution. The amount of the makeup payment to 15 the district must be deducted from available EFA funds before the allocation of EFA funds for the two year. This section does not apply 16 unless the amount of the underpayment exceeds one percent of the EFA funds allocated to the district for the 1997-98 school year. 17 Provided, however, any local tax levied to generate additional revenue due to the EFA underpayment must be taken into account so as to 18 reduce the tax levy by a corresponding amount for applicable year for which the makeup is received as provided in this section." 19 20 B. This section takes effect upon approval by the Governor. 21 . 22 SECTION 69 23 24 TO AMEND SECTION 59-67-150 OF THE 1976 CODE, RELATING TO QUALIFICATIONS OF SCHOOL BUS DRIVERS, 25 SO AS TO PROVIDE THAT EVERY DRIVER OF A PUBLIC SCHOOL BUS SHALL COMPLY WITH THE REQUIREMENTS 26 FOR OBTAINING A COMMERCIAL DRIVER LICENSE UNDER ARTICLE 13, CHAPTER 1 OF TITLE 56, AND TO 27 PROVIDE FOR EXCEPTIONS; TO AMEND SECTION 56-1-2020, RELATING TO THE CONSTRUCTION OF THE 28 PROVISIONS OF THE SOUTH CAROLINA COMMERCIAL DRIVER LICENSE ACT, SO AS TO PROVIDE THAT, TO THE 29 EXTENT THAT THE COMMERCIAL DRIVER LICENSE ACT CONFLICTS WITH SCHOOL BUS DRIVER LICENSING 30 PROVISIONS, THAT ACT PREVAILS, AND THAT WHERE THAT ACT IS SILENT, THE SCHOOL BUS DRIVER 31 LICENSING PROVISIONS APPLY; TO AMEND SECTION 56-1-2030, AS AMENDED, RELATING TO THE DEFINITION 32 OF "COMMERCIAL DRIVER LICENSE", SO AS TO PROVIDE THAT SUCH A LICENSE AUTHORIZES THE LICENSEE 33 TO DRIVE A CLASS OF COMMERCIAL MOTOR VEHICLE OR A PUBLIC SCHOOL BUS; AND TO AMEND SECTION 34 56-1-2090, RELATING TO APPLICATION FOR A COMMERCIAL DRIVER LICENSE, CHANGE OF A LICENSEE'S NAME 35 OR ADDRESS, AND PENALTIES FOR FALSIFYING INFORMATION, SO AS TO DELETE THE EXCEPTION REGARDING
PART II PAGE 596 1 PUBLIC SCHOOL BUS DRIVERS FROM THE REQUIREMENT OF A NONREFUNDABLE APPLICATION FEE OF 2 FIFTEEN DOLLARS FOR A COMMERCIAL DRIVER LICENSE. 3 4 A. Section 59-67-150 of the 1976 Code is amended to read: 5 6 "Section 59-67-150. (A) Every driver of a public school bus shall comply with the requirements for obtaining a commercial 7 driver license under Article 13, Chapter 1 of Title 56, except where specific exceptions are made to this requirement by law; provided, 8 that the period of a valid license for the driver of a public school bus shall be the same as provided by law for a valid commercial driver 9 license. 10 (B) The driver of each school bus must be an experienced driver of good moral habits, and neither he nor any pupil nor any 11 other person shall use alcoholic liquors or smoke any cigar, cigarette, pipe, tobacco or other substance in such vehicle during the time he 12 is operating the same as a school bus." 13 14 B. Section 56-1-2020 of the 1976 Code is amended to read: 15 16 "Section 56-1-2020. This article is a remedial law and must be construed liberally to promote the public health, safety, and 17 welfare. 18 To the extent that this article conflicts with general driver licensing provisions, this article prevails. Where this article is silent, 19 the general driver licensing provisions apply. 20 To the extent that this article conflicts with school bus driver licensing provisions, this article prevails. Where this article is silent, 21 the school bus driver licensing provisions apply." 22 23 C. Section 56-1-2030(3) of the 1976 Code is amended to read: 24 25 "(3) Commercial driver license' means a license issued in accordance with the requirements of the Commercial Motor Vehicle 26 Safety Act of 1986 (Title XII of Public Law 99-570) to an individual which authorizes the individual to drive a class of commercial motor 27 vehicle or a public school bus." 28 29 D. Section 56-1-2090(A)(10) of the 1976 Code is amended to read: 30 31 "(10) a nonrefundable application fee of fifteen dollars, except for public school bus drivers." 32 33 34
PART II PAGE 597 1 SECTION 70 2 3 TO AMEND SECTION 12-36-2120, AS AMENDED, OF THE 1976 CODE RELATING TO EXEMPTIONS FROM SALES TAX, 4 SO AS TO INCLUDE PRESCRIPTION MEDICINES AND THERAPEUTIC RADIOPHARMECEUTICALS USED IN THE 5 TREATMENT OF CANCER AND RELATED DISEASES. 6 7 A. Section 12-36-2120(28)(a) of the 1976 Code, as last amended by Act 497 of 1994, is further amended to read: 8 9 "(28)(a) medicine and prosthetic devices sold by prescription, prescription medicines and therapeutic radiopharmaceuticals 10 used in the treatment of cancer, lymphoma, leukemia, or related diseases, including prescription medicines used to relieve the effects of 11 any such treatment, and free samples of prescription medicine distributed by its manufacturer and any use of these free samples;" 12 13 B. This section takes effect June 28, 1999. 14 15 END OF PART II 16