SECTION 118 - X910 - STATEWIDE REVENUE

118.1. (SR: Year End Cutoff) Unless specifically authorized herein, the appropriations provided in Part IA of this act as ordinary expenses of the State Government shall lapse on July 31, 2019. State agencies are required to submit all current fiscal year input documents and all electronic workflow for accounts payable transactions to the Office of Comptroller General by July 12, 2019. Appropriations for Permanent Improvements, now outstanding or hereafter provided, shall lapse at the end of the second fiscal year in which such appropriations were provided, unless definite commitments shall have been made, with the approval of the State Fiscal Accountability Authority and Joint Bond Review Committee, toward the accomplishment of the purposes for which the appropriations were provided. Appropriations for other specific purposes aside from ordinary operating expenses, now outstanding or hereafter provided, shall lapse at the end of the second fiscal year in which such appropriations were provided, unless definite commitments shall have been made, with the approval of the State Fiscal Accountability Authority, toward the accomplishment of the purposes for which the appropriations were provided.

118.2. (SR: Titling of Real Property) It is the intent of the General Assembly to establish a comprehensive central property and office facility management process to plan for the needs of state government agencies and to achieve maximum efficiency and economy in the use of state owned or state leased real properties. The Department of Administration is directed to identify all state owned properties whether titled in the name of the state or an agency or department, and all agencies and departments of state government are upon request to provide the department all documents related to the title and acquisition of the real properties that are occupied or used by the agency or titled in the name of the agency. Except for any properties where the department

determines title should not be in the name of the State because the properties are subject to reverter clauses or other restraints on the property, or where the department determines the state would be best served by not receiving title, and with the exception of properties, highways and roadways owned by the Department of Transportation, title of any property held by or acquired by a state agency or department shall be titled in the name of the state under the control of the Department of Administration. Titling in the name of the state shall not affect the operation or use of real property by an agency.

This provision applies to all state agencies and departments except: institutions of higher learning; the Public Service Authority; the Ports Authority; the South Carolina Division of Public Railways; the MUSC Hospital Authority; the Myrtle Beach Air Force Redevelopment Authority; the Department of Transportation; the Midlands Technical College Enterprise Campus Authority, the Trident Technical College Enterprise Campus Authority; the Area Commission of Tri-County Technical College; and the Charleston Naval Complex Redevelopment Authority.

This provision is comprehensive and supersedes any conflicting provisions concerning title and acquisition and disposition of state owned real property whether in permanent law, temporary law or by provision elsewhere in this act.

The Department of Administration is directed to provide to the Department of Education, funds equal to the amount realized from the sale of the Greenville Halton Road Bus Shop property for school bus maintenance shop relocations, construction, and shop equipment.

118.3. (SR: Contingency Reserve Fund) (A) There is created in the State Treasury a fund separate and distinct from the general fund of the State, the Capital Reserve Fund, and all other funds entitled the Contingency Reserve Fund. All general fund revenues accumulated in a fiscal year in excess of general appropriations and supplemental appropriations must be credited to this fund. Revenues credited to this fund in a fiscal year may be appropriated by the General Assembly. Upon determination by the Comptroller General as to the amount to be deposited in the Contingency Reserve Fund, the Comptroller General shall notify the Board of Economic Advisors and the board shall recognize that amount as surplus funds. Revenues in this fund may be appropriated only for the purposes provided in subsection (B).

(B) (1) If the balance in the general reserve fund established pursuant to Section 36, Article III of the Constitution of this State and Section 11-11-310 of the 1976 Code is less than the required balance, there must be appropriated to it all amounts in the Contingency Reserve Fund up to the total necessary to replenish the general reserve fund. This amount does not replace or supplant the minimum replenishment amount otherwise required to be made to the general reserve fund.

(2) After the appropriation of amounts required pursuant to item (1) of this subsection, any remaining balance may be appropriated by the General Assembly as it deems appropriate.

118.4. (SR: Increased Enforced Collections Carry Forward) Unexpended funds appropriated pursuant to Proviso 90.16 in Part IB of Act 291 of 2010 may be carried forward from the prior fiscal year into the current fiscal year and shall be expended for the same purposes.

118.5. (SR: Health Care Maintenance of Effort Funding) The revenue collected from the fifty cent cigarette surcharge and deposited into the South Carolina Medicaid Reserve Fund established by Act 170 of 2010 and any other funds deposited into the fund shall be deemed appropriated for use by the Department of Health and Human Services for the Medicaid program. Unexpended funds appropriated pursuant to this provision may be carried forward to succeeding fiscal years and expended for the same purposes.

118.6. (SR: Prohibits Public Funded Lobbyists) All state agencies and institutions are prohibited from using general fund appropriations to compensate employees who engage in lobbying on behalf of the state agency or institution. The State Ethics Commission shall require state agencies and institutions that report lobbying activities to the commission to certify that the lobbying activities were not funded by general fund appropriations.

All state agencies and institutions are prohibited from entering into contracts using general fund appropriations to provide lobbying services to the agency or institution.

118.7. (SR: Admissions Tax) For the current fiscal year, up to one hundred fourteen thousand dollars in admissions tax revenue collected annually from all events held at a NASCAR sanctioned motor speedway or racetrack that hosts at least one race each year featuring the preeminent NASCAR cup series must be rebated to the motorsports entertainment complex facility in the current fiscal year to keep a NASCAR race at the motorsports entertainment complex facility. In addition, any sports facility that hosts at least one preeminent Womens Tennis Association-sanctioned tournament or any sports facility that operates as the home venue for a professional soccer team that participates in the United Soccer Leagues, second division or higher, must be rebated to the facility half of its admissions tax revenue for the fiscal year and used by that facility for marketing the events held at the facility.

118.8. (SR: Agency Deficit Notice) The Comptroller General or the Executive Budget Office shall (1) provide written notice to each member of the General Assembly when it makes a report concerning an agency, department, or institution that is expending authorized appropriations at a rate which predicts or projects a general fund deficit for the agency, department, or institution, and (2) make monthly progress reports concerning an agencys, departments, or institutions plan to reduce or eliminate the deficit.

118.9. (SR: Tax Relief Reserve Fund) (A) There is created the Tax Relief Reserve Fund, which shall be separate and distinct from the General Fund. Interest accrued by the fund must remain in the fund. Notwithstanding any other provision of law, on December 31, 2018, the State Treasurer shall transfer funds identified in this act from the General Fund to the Tax Relief Reserve Fund. These funds may only be used to provide tax relief to businesses and individuals as provided by law. Funds within the Tax Relief Reserve Fund shall be retained and carried forward to be used for the same purpose.

118.10. (SR: Tax Deduction for Consumer Protection Services) (A) In addition to the deductions allowed in Section 12-6-1140 of the 1976 Code, there is allowed a deduction in computing South Carolina taxable income of an individual the actual costs, but not exceeding three hundred dollars for an individual taxpayer, and not exceeding one thousand dollars for a joint return or a return claiming dependents, incurred by a taxpayer in the taxable year to purchase a monthly or annual contract or subscription for identity theft protection and identity theft resolution services. The deduction allowed by this item may not be claimed by an individual if the individual deducted the same actual costs as a business expense or if the taxpayer is enrolled in the identity theft protection and identity theft resolution services offered free of charge by the State of South Carolina. For purposes of this item, identity theft protection means products and services designed to prevent an incident of identify fraud or identity theft or other protect the private of a person personal identifying information, as defined in Section 16-13-510(D), by precluding a third party from gaining unauthorized acquisition of anothers personal identifying information to obtain financial resources or other products, benefits or services; and identity theft resolution services means products and services designed to assist persons whose personal identifying information, as defined by Section 16-13-510(D), was obtained by a third party, whereby minimizing the effects of the identity fraud or identity theft incident and restoring the persons identity to pre-theft status.

(B) The deduction provided in (A) is only allowed for taxpayers that filed a return with the Department of Revenue for any taxable year after 1997 and before 2013, whether by paper or electronic transmission, or any person whose personally identifiable information was contained on the return of another eligible person, including minor dependents.

(C) By March fifteenth of each year, the department shall issue a report to the Governor and the General Assembly detailing the number of taxpayers claiming the deduction allowed by this item in the most recent tax year for which there is an accurate figure, and the total monetary value of the deductions claimed pursuant to this item in that same year.

(D) The department shall prescribe the necessary forms to claim the deduction allowed by this section. The department may require the taxpayer to provide proof of the actual costs and the taxpayers eligibility.

118.11. (SR: Tobacco Settlement) (A) To the extent funds are available from payments received on behalf of the State by the Tobacco Settlement Revenue Management Authority from the Tobacco Master Settlement Agreement (MSA) in the current fiscal year, the State Treasurer is authorized and directed, after transferring funds sufficient to cover the operating expenses of the Authority, to transfer the remaining funds as follows:

(1) $1,253,000 to the Attorney Generals Office for Diligent Enforcement and Arbitration Litigation; $450,000 to the State Law Enforcement Division for Diligent Enforcement; and $325,000 to the Department of Revenue for Diligent Enforcement, all to enforce Chapter 47 of Title 11, the Tobacco Escrow Fund Act; and

(2) The remaining balance shall be transferred to a restricted account authorized solely for use by the Department of Health and Human Services for the Medicaid program. Earnings on this fund must be credited to the fund and balances may be carried forward from the prior fiscal year for the same purpose.

(B) The requirements of Section 11-11-170 of the 1976 Code shall be suspended for the current fiscal year.

118.12. (SR: One Dollar Appropriations) Funds appropriated in the amount of one dollar by this act shall not be disbursed. The Comptroller General shall adjust the affected agencys chart of accounts accordingly, if necessary.

118.13. DELETED

118.14. DELETED

118.15. (SR: Nonrecurring Revenue) (A) The source of revenue appropriated in subsection (B) is nonrecurring revenue generated from the following sources:

(1) $16,567,887 from Fiscal Year 2017-18 Debt Service Lapse;

(2) $4,119,137 from the Litigation Recovery Account;

(3) $293,301 from Fiscal Year 2017-18 Capital Reserve Fund Lapse (Per SC Code 11-11-320); and

(4) $13,360,642 from Fiscal Year 2018-19 Unobligated Debt Service.

Any restrictions concerning specific utilization of these funds are lifted for the specified fiscal year. The above agency transfers shall occur no later than thirty days after the close of the books on Fiscal Year 2017-18 and shall be available for use in Fiscal Year 2018-19.

This revenue is deemed to have occurred and is available for use in Fiscal Year 2018-19 after September 1, 2018, following the Comptroller Generals close of the states books on Fiscal Year 2017-18.

(B) The appropriations in this provision are listed in priority order. Item (1) must be funded first and each remaining item must be fully funded before any funds are allocated to the next item. Provided, however, that any individual item may be partially funded in the order in which it appears to the extent that revenues are available.

The State Treasurer shall disburse the following appropriations by September 30, 2018, for the purposes stated:

(1) H630 - Department of Education

(a) Bus Lease $2,527,812;

(b) Governors School for the Arts

and the Humanities

Fire Protection Component

Upgrade $480,000;

(c) Governors School for the Arts

and the Humanities Core

Switch Replacement $65,000;

(d) Low Achieving Schools,

Proviso 1A.51 $125,000;

(2) H710 - Wil Lou Gray Opportunity School

Capital Improvements $500,000;

(3) H030 - Commission on Higher Education

Statewide Higher Education Repair

and Renovation Fund (Proviso 11.22) $1;

(4) H180 - Francis Marion University

**(a) Medical and Health Education

Classroom Complex $5,000,000;

**(b) Honors College $2,100,000;

(5) Reserved

(6) H590 - State Board for Technical and

Comprehensive Education

Orangeburg-Calhoun Technical

College Nursing

Cooperative Program with

Claflin University $200,000;

(7) H790 - Department of Archives and History

(a) Conservation of South Carolinas

Constitutions $200,000;

**(b) Charleston Library Society Beaux

Arts Building $250,000;

**(c) Historic Buildings Preservation $500,000;

(8) H910 - Arts Commission

**SC Childrens Theatre $500,000;

(8.1) The funds appropriated to the Arts Commission above in item (8) for the SC Childrens Theatre must be matched 2:1 by the organization and the Arts Commission must verify that the organization has matched the funds prior to disbursement.

(9) H730 - Vocational Rehabilitation

Equestrian Center PTSD Program $500,000;

(9.1) The funds appropriated to the Department of Vocational Rehabilitation in Item (9) for the Equestrian Center PTSD Program shall be used by the department to develop an equine therapy program with an emphasis on serving veterans with Post-Traumatic Stress Disorder. Any unexpended funds appropriated to Lander University in previous fiscal years for this purpose shall be transferred to the Department of Vocational Rehabilitation to be expended for this program. The department may utilize existing contract proposals to establish a pilot program at a single location and provide for potential expansion to other locations.

(10) J020 - Department of Health and

Human Services Medical Contracts $4,000,000;

(11) J040 - Department of Health and

Environmental Control

(a) Water Quality $1;

(b) M.A.D. USA Men Against

Domestic Violence $150,000;

(c) SC Cervical Cancer Awareness

Initiative $130,000;

(12) L040 - Department of Social Services

Florence Crittenton $150,000;

(13) P120 - Forestry Commission

Firefighting Equipment $1,000,000;

**(14) P160 - Department Agriculture

Statewide Agribusiness

Infrastructure $210,000;

(15) P240 - Department of Natural Resources

(a) Statewide Public Wildlife

and Fisheries Management

Projects $500,000;

(b) Natural Resources Significant Sites

Grant Program (Proviso 47.12) $1;

(16) P280 - Department of Parks, Recreation

and Tourism

(a) State Park Maintenance Needs $2,400,000;

(b) Parks and Recreation Development

Fund $1;

(c) International African American

Museum $1;

**(d) Murrells Inlet Channel Clearing $300,000;

(e) Morris Island Lighthouse $175,000;

(17) P320 - Department of Commerce

(a) Deal Closing Fund $1;

(b) Applied Research Centers $500,000;

(c) Military Base Task Force $600,000;

**(d) Locate SC $4,000,000;

**(e) Economic Development Hubs

and Community

Development Infrastructure $1,300,000;

(18) P400 - S C Conservation Bank

Conservation Bank Trust $1;

(19) B040 - Judicial Department

Digital Recording (5 Court Rooms) $220,000;

(20) C050 - Administrative Law Court

Technology Upgrades $80,000;

(21) E200 - Office of the Attorney General

IT/Infrastructure Upgrades $1;

(22) E210 - Prosecution Coordination Commission

Case Management System $1;

(23) D100 - State Law Enforcement Division

(a) Forensics Equipment $1;

(b) First Responder PTSD Treatment $1;

(24) K050 - Department of Public Safety

(a) Rifles for Highway Patrol $1;

(b) Local Law Enforcement Grants $1;

(25) N040 - Department of Corrections

Security Systems and Equipment

Repairs and Upgrades $3,050,590;

**(26) N120 - Department of Juvenile Justice

Child Advocacy Centers $170,000;

(27) R360 - Department of Labor,

Licensing and Regulation

Local Fire Department Grants $1;

(28) R400 - Department of Motor Vehicles

Act 40 of 2017 Implementation

Costs $1;

(29) R600 - Department of Employment and

Workforce Be Pro Be Proud $1;

(30) Y140 - State Ports Authority

Jasper Ocean Terminal Port $1,425,000;

(31) D500 - Department of Administration

State-Owned Building Maintenance $1;

(32) E240 - Office of Adjutant General

(a) Statewide Readiness Centers -

Female Latrines (12) $1;

(b) Stand Alone Kitchens $107,547;

(c) Infrastructure Improvements $325,000; and

(33) E280 - Election Commission

Special Election Fund Recoupment $600,000.

(C) Unexpended funds appropriated pursuant to this provision may be carried forward to succeeding fiscal years and expended for the same purposes.

118.16. DELETED

118.17. DELETED

END OF PART IB

All acts or parts of acts inconsistent with any of the provisions of Part IA or Part IB of this act are suspended for Fiscal Year 2018-19.

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

Except as otherwise specifically provided, this act takes effect July 1, 2018.

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Ratified the 29th day of June 2018.

PLEASE NOTE

Text printed in italic, boldface indicates sections vetoed by the Governor on July 5, 2018.

*Indicates those vetoes sustained by the General Assembly on October 3, 2018.

**Indicates those vetoes overridden by the General Assembly on October 3, 2018.

*** Indicates vetoes continued by the House of Representatives on October 3, 2018.

Provisions not vetoed by the Governor took effect July 5, 2018, and generally apply for the fiscal year beginning July 1, 2018.

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