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, 2020. 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 14, 2020. 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.

With respect to any past or future acquisition of real property, the application of this provision and prior comparable titling provisions to the South Carolina Department of Natural Resources and real property under its ownership or control is subject to the exemption adopted by the South Carolina Budget and Control Board on March 21, 2006.

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, 2019, 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;

**(2) The Attorney Generals Office shall maintain a balance of $1,253,000 in a fund for future tobacco arbitration. Attorney General funds in excess of $1,253,000 may be utilized for information technology expenses and building infrastructure upgrades. These funds may be carried forward from the prior fiscal year into the current fiscal year and utilized for the same purpose; and

(3) 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. (SR: Non-recurring Litigation Recovery Revenue) During the current fiscal year, if there is a recovery or an award in any litigation managed by the State through a party other than the Attorney General, or if a state tax audit results in a collection, any funds received in excess of twenty-five million dollars that are not likely to continue as recurring revenue and would have otherwise been credited to the General Fund shall be credited to the Litigation Recovery Account. The amount credited to this Litigation Recovery Account pursuant to this provision is deemed non-recurring revenue and must be expended only in the manner prescribed by law.

118.15. (SR: Taxpayer Rebate) In the event that amounts in excess of the Fiscal Year 2018-19 unobligated general fund revenue as certified by the Board of Economic Advisors become available due to increased income tax collections resulting from the lottery ticket redemption associated with the October 24, 2018 Mega Millions contest, the Comptroller General shall transfer such amounts in excess of the total certified unobligated general fund revenue up to $61,400,000 to a Taxpayer Rebate Fund after the close of Fiscal Year 2018-19. To the extent sufficient funds are available, the Department of Revenue shall provide a fifty dollar refund to each individual income tax return filed for tax year 2018 that has at least a state individual income tax liability of fifty dollars, after credits, for returns filed on or before October 15, 2019. The Department of Revenue may prorate this amount based upon actual funds and eligible returns and is directed to issue these checks on December 2, 2019.

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

(1) $169,541,926 from Fiscal Year 2017-18 Contingency Reserve Fund;

(2) $158,650,000 from projected Fiscal Year 2018-19 unobligated general fund revenue as certified by the Board of Economic Advisors;

(3) $9,598,318 from the Litigation Recovery Account; and

(4) $6,442,108 from Fiscal Year 2018-19 Debt Service Lapse.

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 2018-19 and shall be available for use in Fiscal Year 2019-20.

This revenue is deemed to have occurred and is available for use in Fiscal Year 2019-20 after September 1, 2019, following the Comptroller Generals close of the states books on Fiscal Year 2018-19.

(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, 2019, for the purposes stated:

(1) F310 - General Reserve Fund

General Reserve Fund Contribution $ 27,089,778;

(2) Part 1A General Fund $ 20,403,313;

(3) E240 - Office of Adjutant General

Emergency Management Division -

FEMA State Match

Hurricane Florence $ 22,000,000;

(4) D500 - Department of Administration

(a) New Statewide Voting System $ 40,000,000;

(b) Professional Services $ 5,000,000;

(4.1) From the funds appropriated to the Department of Administration in Item(4)(b) for Professional Services, the department is authorized to procure such professional services that are necessary to qualify bids and proposals; receipt and evaluation of bids received for a sale, management proposals, and Santee Coopers proposal; and, negotiate contracts for the consummation of a sale or a management proposal, and related activities. These professional services shall include, but may not be limited to, financial institutions, investment bankers, legal counsel, industry consultants and utility consultants. In the event these funds are not used for this purpose, the funds shall revert to the General Fund. The provisions of the Consolidated Procurement Code in Chapter 35, Title 11 of the 1976 Code and any other provisions of the general law of this State in conflict with the provisions of this proviso are hereby suspended with regard to the activities undertaken pursuant herein.

(5) E280 - Election Commission

2020 Presidential Primary $ 2,166,500;

(6) N040 - Department of Corrections

Detention Services and

Equipment Upgrades $ 10,000,000;

(7) U120 - Department of Transportation

(a) Rest Areas $ 4,000,000;

(b) T-Bridge Repair and Rehabilitation $ 1;

(8) A010 - The Senate

Operating $ 1,250,000;

(9) R600 - Department of Employment

and Workforce

Be Pro Be Proud $ 642,500;

(10) U300 - Division of Aeronautics

State Aviation Fund $ 1,000,000;

(11) P280 - Department of Parks, Recreation,

and Tourism

(a) Advertising $ 1,200,000;

(b) Saluda River Greenway $ 1,500,000;

(c) Special Olympics $ 250,000;

(d) SC Aquarium $ 1,500,000;

(e) SC Association of Tourism

Regions $ 550,000;

**(f) Parks Revitalization $ 6,500,000;

(g) Morris Island Lighthouse $ 175,000;

(12) J020 - Department of Health and

Human Services

(a) Medicaid Management

Information System $ 7,409,009;

**(b) Medical Contracts $ 3,500,000;

(c) Cervical Cancer Awareness $ 150,000;

(13) J120 - Department of Mental Health

Certification of State Match -

VA Nursing Homes $ 37,065,450;

(13.1) Of the funds appropriated to the Department of Mental Health in Item (13), unexpended funds are to be retained in the departments Deferred Maintenance/Capital Project account and such funds, and the interest earned thereon, may only be expended by the department for additional State Veterans Nursing Home construction projects.

(14) J200 - Department of Alcohol and

Other Drug Abuse Services

(a) Infrastructure Improvement/

Substance Abuse

Provider System $ 3,000,000;

(b) Opioid Response and Addiction

Efforts $ 3,000,000;

(15) L040 - Department of Social Services

(a) Child Support Enforcement System $ 28,600,000;

(b) Criminal Domestic Violence -

SCCADVASA $ 800,000;

(c) Epworth Childrens Home $ 350,000;

(d) Florence Crittenton $ 150,000;

(16) J040 - Department of Health and

Environmental Control

(a) Murrells Inlet Channel Clearing $ 2,000,000;

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

Domestic Violence $ 250,000;

(17) B040 - Judicial Department

**(a) Case Management System

Modernization $ 11,000,000;

(b) Digital Courtroom Recording $ 1;

(18) E240 - Office of Adjutant General

(a) SCEMD - State Emergency

Operations Center Improvements $ 250,000;

(b) Armory Construction and

Revitalizations $ 4,000,000;

(c) McEntire Joint National

Guard Base - Land

Management $ 2,200,000;

(19) J160 - Department of Disabilities and

Special Needs

South Carolina Genomic Medicine

Initiative - TGEM $ 2,000,000;

(20) P160 - Department of Agriculture

(a) Laboratory/Inspection Equipment $ 800,000;

(b) Regional Farmers Market $ 1,000,000;

(c) Farmers - Flood Relief $ 1;

(d) Farm Aid $ 25,000,000;

(21) H790 - Department of Archives and

History

(a) Replacement Microfilm Scanner $ 102,000;

(b) African American Heritage

Commission - Greenbook of SC $ 100,000;

**(c) Historic Preservation $ 3,400,000;

**(d) Community Development Grants $ 2,000,000;

(22) P120 - Forestry Commission

Firefighting Equipment $ 1,000,000;

(23) Y140 - State Ports Authority

Jasper Ocean Terminal Port Facility

Infrastructure Fund $ 8,000,000;

(24) K050 - Department of Public Safety

(a) Vehicles $ 500,000;

**(b) Local Law Enforcement Grants $ 2,000,000;

(25) P320 - Department of Commerce

(a) Closing Fund $ 3,700,000;

(b) Military Base Task Force $ 750,000;

(c) LocateSC $ 4,000,000;

(26) N12 - Department of Juvenile Justice

(a) Electrical Grid Conversion $ 1,120,000;

**(b) Child Advocacy Centers $ 170,000;

(c) Payment of Comp Time $ 379,583;

(d) Payment of Overtime $ 2,300,000;

(26.1) Of the funds appropriated to the Department of Juvenile Justice in Item (26)(d) for Payment of Overtime, the department is authorized and required to pay current non-exempt correctional officers by October 1st for any overtime earned in the prior fiscal year as represented by any compensatory time reflected in SCEIS on August 1, 2019, that was earned from September 2, 2018 to June 30, 2019. The funds for this compensation must be provided from appropriated overtime funding. If the amount of appropriated funds is not sufficient to pay all the non-exempt correctional officers accrued overtime, the department shall pay the officers on a percentage distribution based on the hours owed per officer up to the total amount that has been appropriated and any remaining hours shall be compensated as compensatory time.

(27) H630 - Department of Education

(a) Governors School for Arts

and Humanities Shingled

Roof Replacement $ 120,000;

(b) Governors School for the Arts

and Humanities Repave

Parking Lot and Roads $ 235,000;

(c) Governors School for the Arts

and Humanities Safety Repair $ 155,000;

(d) First Steps - Outcome and

Accountability System $ 1;

(e) Lakes and Bridges Charter School -

Capital Improvements $ 200,000;

(28) H950 - State Museum Commission

(a) Exhibit Renovations $ 3,000,000;

(b) Point of Sale Upgrade $ 71,900;

(c) Bishopville Military Museum $ 75,000;

(29) H960 - Confederate Relic Room and

Military Museum Commission

(a) Uniform Collection $ 75,000;

(b) Security Upgrades $ 25,000;

(30) L240 - Commission for the Blind

Bathroom Renovations for

ADA Compliance $ 30,000;

(31) L360 - Human Affairs Commission

SC Pregnancy Accommodations

Act Training - Act 244 $ 70,100;

(32) R080 - Workers Compensation

Commission IT System Legacy

Modernization Project $ 1,800,000;

(33) R400 - Department of Motor Vehicles

End-to-End Encryption $ 400,000;

(34) E500 - Revenue and Fiscal Affairs Office

Statewide Aerial Imagery Project $ 2,000,000;

(35) E210 - Prosecution Coordination

Commission

(a) Centers for Fathers and Families $ 700,000;

(b) Student Loan Forgiveness $ 1;

(36) D100 - State Law Enforcement

Division - SLED

(a) SC Critical Infrastructure

Cybersecurity Program

Equipment $ 126,475;

(b) Vehicle Replacement Plan $ 1;

(c) First Responder PTSD Treatment $ 500,000;

(36.1) Of the funds appropriated to the State Law Enforcement Division in Item (36)(c) for First Responder PTSD Treatment, the State Law Enforcement Division shall distribute fifty percent to the South Carolina Law Enforcement Assistance Program to reimburse law enforcement officers who incur mental injury as a result of a critical incident during the scope of employment for actual out-of-pocket expenses not covered through workers compensation claims and/or other insurance and can also be utilized to provide services through the South Carolina Law Enforcement Assistance Program. The State Law Enforcement Division shall distribute fifty percent to the South Carolina State Firefighters Association for the South Carolina Firefighter Assistance Support Team to reimburse firefighters and emergency

medical technicians who incur mental injury as a result of a critical incident during the scope of employment for actual out-of-pocket expenses not covered through workers compensation claims and/or other insurance and can also be utilized to provide services through the South Carolina Firefighter Assistance Support Team. The State Law Enforcement Division shall promulgate any administrative regulations necessary to carry out the provisions of this section.

(37) R440 - Department of Revenue

Taxpayer Rebate $ 6,000,000;

(38) P200 - Clemson - PSA

Facility Renovation for Water Research $ 1;

(39) R360 - Department of Labor, Licensing

& Regulation

(a) Urban Search and Rescue - SC

Task Force1 Equipment $ 150,593;

**(b) Local Fire Department Grants $ 280,000;

(40) D500 - Department of Administration

State Owned Building Deferred

Maintenance $ 800,000;

(41) H910 - Arts Commission

(a) Greenville Cultural and

Arts Center $ 7,000,000;

**(b) Cultural Arts & Theater

Center Renovation $ 450,000;

(42) P240 - Department of Natural Resources

(a) Ft. Johnson Boat Slip Renovations $ 2,000,000;

(b) Watercraft Registration Conversion

- Act 233 $ 1,795,680;

(c) Hunter Education - Sporting Event

Range $ 750,000;

(d) Law Enforcement Officer Class -

Equipment $ 1;

(e) State Water Planning $ 1,350,000;

(42.1) Of the funds appropriated to the Department of Natural Resources in Item (42)(e) for State Water Planning, the department shall designate $400,000 to complete the Edisto River Basin Study.

(43) P400 - Conservation Bank

Conservation Grants $ 3,431,954;

(44) H710 - Wil Lou Gray Opportunity School

(a) Infrastructure Upgrades $ 100,000;

(b) HVAC Upgrade $ 100,000;

**(45) P360 - Patriots Point Development

Authority

USS Clamagore Veteran Memorial

Reef $ 1,700,000;

(46) H730 - Vocational Rehabilitation

(a) Information Technology/

Security - Computer

Purchases $ 659,000; and

(b) VR Center Capital Improvements

- State Match $ 808,509.

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

118.17. (SR: Farm Aid) There is created the South Carolina Farm Aid Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings on this fund must be credited to it. Revenues credited to this fund in a fiscal year must be used in that fiscal year to operate a grant program that provides financial assistance to farmers.

To be eligible for a grant, the person must have:

(1) experienced a verifiable loss of agricultural commodities of at least thirty percent as a result of the flooding occurring in the aftermath of Hurricanes Michael and Florence for which:

(a) the Governor declared a state of emergency in the State for the county in which the farm is located; and

(b) the United States Secretary of Agriculture issued a Secretarial Disaster Declaration for the county in which the farm is located;

(2) a farm number issued by the Farm Service Agency;

(3) signed an affidavit, under penalty of perjury, certifying that each fact of the loss presented by the person is accurate; and

(4) a signed affidavit, under penalty of perjury, certifying that no federal funds have been received for these specific disasters, and in the event that federal funds are received, the person will return all state monies received under this program.

The Department of Agriculture (department) shall administer the grant program authorized by this proviso. The Department of Revenue shall assist the Department of Agriculture in the administration of the grant program by providing auditing services, accounting services, and review and oversight of all financial aspects of the grant program. There is created the Farm Aid Advisory Board to make recommendations to the department regarding the duties of the department in administering the grant program. The Commissioner of Agriculture, or his designee, shall serve ex officio, as chairman of the board. Also, the Director of the Department of Revenue, or his designee, the Vice President for Public Service and Agriculture of Clemson Public Service Activities, or his designee, and the Vice President for Land Grant Services of South Carolina State Public Service Activities, or his designee, shall serve on the board. The following additional members shall be appointed to the board:

(1) the Commissioner of Agriculture shall appoint one member representing the South Carolina Farm Bureau;

(2) the Commissioner of Agriculture shall appoint one member representing a farm credit association;

(3) the Director of the Department of Revenue shall appoint one member representing the crop insurance industry; and

(4) the Director of the Department of Revenue shall appoint one member who is an agricultural commodities producer.

By July twentieth of the current fiscal year, the board shall hold its initial meeting to recommend an application process by which a person with a loss resulting from the flooding occurring in the aftermath of Hurricanes Michael and Florence may apply for a grant. Upon adoption of an application process, the Department of Agriculture shall provide the Chairman of the House Ways and Means Committee and the Chairman of the Senate Finance Committee with a written copy of its application process within ten days after its adoption. A person shall apply not later than forty-five days after the adoption of the application process. The department must ensure every person interested in applying for a grant has access to adequate resources to submit his application in a timely manner, and upon request, the department must assist a person with the preparation of his application.

Each grant awarded by the department may not exceed twenty percent of the persons verifiable loss of agricultural commodities. However, a person, including any grant made to a related person, may not receive grants aggregating more than one hundred thousand dollars. Also, a person, including any grant made to a related person, may not receive grants that when combined with losses covered by insurance, exceed one hundred percent of the actual loss. If a grant is made to a related person, the amount to be included in the limits set by this proviso must be the amount of the grant multiplied by the persons ownership interest in the related person. However, a person who shares an ownership interest with another person or entity may not be refused a grant solely because the other person or related person has otherwise received the maximum grant amount, but in this case, the persons grant amount is limited by the persons ownership interest.

If the total amount of grants allowed pursuant to this proviso exceeds the monies in the fund, then each persons grant must be reduced proportionately.

To determine loss, the department:

(1) must measure the persons cumulative total loss of all affected agricultural commodities for the year in which the flooding occurred against the persons expected production of all agricultural commodities affected by the flooding occurring in the aftermath of Hurricanes Michael and Florence;

(2) shall use the persons applicable actual production history yield, as determined by the Federal Crop Insurance Corporation, to determine loss for insured agricultural commodities. In determining loss for uninsured agricultural commodities, the department shall use the most recent years county price and county yield, as applicable, as determined by the National Agriculture Statistics Service, United States Department of Agriculture; and

(3) may require any documentation or proof it considers necessary to efficiently administer the grant program, including the ownership structure of each entity and the social security numbers of each owner. Minimally, in order to verify loss, the department shall require the submission of dated, signed, and continuous records. These records may include, but are not limited to, commercial receipts, settlement sheets, warehouse ledger sheets, pick records, load summaries, contemporaneous measurements, truck scale tickets, contemporaneous diaries, appraisals, ledgers of income, income statements of deposit slips, cash register tape, invoices for custom harvesting, u-pick records, and insurance documents.

Grant awards must be used for agricultural production expenses and losses due to the flooding which demonstrate an intent to continue the agricultural operation; however, awards may not be used to purchase new equipment. The department shall develop guidelines and procedures to ensure that funds are expended in the manner outlined in grant applications, and may require any documentation it determines necessary to verify the appropriate use of grant awards including receipts.

If the department determines that a person who received a grant provided inaccurate information, then the person shall refund the entire amount of the grant. If the department determines that a person who received a grant used the funds for ineligible expenses, then the person must refund the amount of the ineligible expenses. If the person does not refund the appropriate amount, the Department of Revenue shall utilize the provisions of the Setoff Debt Collection Act to collect the money from the person.

The department shall coordinate the exchange of information between the USDA and the Department of Revenue to identify any person that received a Farm Aid grant for the flooding occurring in the aftermath of Hurricanes Michael and Florence and also received federal aid relief for the same disaster. Any person that is determined to have received grant funds from both the state and federal government, must immediately repay the state grant they received.

If the department determines that a person knowingly provided false information to obtain a grant pursuant to this proviso or knowingly used funds for ineligible expenses, the person shall be subject to prosecution pursuant to Section 16-13-240.

Within forty-five days of the completion of the awarding of grants, but no later than the end of the fiscal year, the Farm Aid Advisory Board is dissolved. Any funds remaining in the fund upon dissolution shall lapse to the general fund.

The department may accept private funds, grants, and property to be used to make financial awards from the grant program.

The Department of Agriculture must administer the grant program authorized by this proviso using existing resources and funds.

If federal funds are allocated for persons that are otherwise eligible for a grant pursuant to this proviso before the current fiscal year begins, then the provisions of this proviso are not effective and no funds may be credited to the South Carolina Farm Aid Fund.

For purposes of this proviso:

(1) Agricultural commodities means wheat, cotton, flax, corn, dry beans, oats, barley, rye, tobacco, rice, peanuts, soybeans, sugar beets, sugar cane, tomatoes, grain sorghum, sunflowers, raisins, oranges, sweet corn, dry peas, freezing and canning peas, forage, apples, grapes, potatoes, industrial hemp, timber and forests, nursery crops, citrus, and other fruits and vegetables, nuts, tame hay, native grass, aquacultural species including, but not limited to, any species of finfish, mollusk, crustacean, or other aquatic invertebrate, amphibian, reptile, or aquatic plant propagated or reared in a controlled or selected environment, excluding stored grain;

(2) Person means any individual, trust, estate, partnership, receiver, association, company, limited liability company, corporation, or other entity or group;

(3) Related person means any person, joint venture, or entity that has a direct or indirect ownership interest of a person or legal entity; and

(4) Department means the Department of Agriculture.

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 2019-20.

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, 2019.

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Ratified the 22nd day of May 2019.

PLEASE NOTE

Text printed in italic, boldface indicates sections vetoed by the Governor on May 28, 2019.

*Indicates those vetoes sustained by the General Assembly on June 25, 2019.

**Indicates those vetoes overridden by the General Assembly on June 25, 2019.

Provisions not vetoed by the Governor took effect May 22, 2019, and generally apply for the fiscal year beginning July 1, 2019.

* See note at end of Act.

** See note at end of Act.

* See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

* See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.

** See note at end of Act.