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, 2018 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 13, 2018 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 and established by Act 170 of 2010 and any other funds deposited into the fund shall be utilized deemed appropriated for use by the Department of Health and Human Services for the Medicaid program. By this provision these funds are deemed to have been received and are available for appropriation. 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) 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, 2017 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) during Fiscal Year 2017-18 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 Fiscal Year 2017-18 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. (SR: Nonrecurring Revenue) (A) The source of revenue appropriated in subsection (B) is nonrecurring revenue generated from the following sources:

(1) $28,496,108 from Fiscal Year 2016-17 unobligated general fund revenue as certified by the Board of Economic Advisors;

(2) $16,183,789 from the Litigation Recovery Account;

(3) $4,526,031 from the South Carolina Farm Aid Fund Lapse;

(4) $7,879,103 from Fiscal Year 2016-17 (X440) Excess Homestead Exemption;

(5) $13,397,132 from Fiscal Year 2016-17 Debt Service Lapse; and

(6) $17,800,000 redirected from Fiscal Year 2016-17 (D100) State Law Enforcement Division Forensic Building. The State Law Enforcement Division shall lapse to the General Fund the funds appropriated in Act 284 of 2016 by proviso 118.16, item (B)(31)(a) for a Forensic Building.

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 2016-17 and shall be available for use in Fiscal Year 2017-18.

This revenue is deemed to have occurred and is available for use in Fiscal Year 2017-18 after September 1, 2017, following the Comptroller Generals close of the states books on Fiscal Year 2016-17.

(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, 2017, for the purposes stated:

(1) F310 - General and Capital Reserve Funds

General Reserve Fund Contribution $ 15,532,616

(2) P280 - Department of Parks, Recreation and Tourism

Statewide Coastal Beach Renourishment $ 5,000,000

(2.1) The Department of Parks, Recreation and Tourism shall allocate the funds appropriated in item (2) for Statewide Coastal Beach Renourishment to local governments and state agencies for beach renourishment activities to repair damage caused by storm activity in 2015 and 2016 and to accelerate routine renourishment activities on beaches damaged by the storms. Local governments and state agencies shall make application for renourishment funds on a form and in the manner prescribed by the department and funds shall be allocated using a prioritization process developed by the department. The department shall report to the Governor, the Chairman of the House Ways and Means Committee and the Chairman of the Senate Finance Committee on applications received and the process for prioritizing renourishment funding no later than September 1, 2017.

(3) P320 - Department of Commerce

(a) Closing Fund $ 16,100,000

(b) LocateSC........................................................................................................................ $ 8,000,000

(c) Applied Research Centers $ 2,000,000

(4) J040 - Department of Health and Environmental Control

Pinewood Site Leachate Recovery $ 1,848,000

(5) J020 - Department of Health and Human Services

Rural Hospital Transformation Plan $ 4,000,000

(5.1) The funds appropriated to the Department of Health and Human Services in item (5) for the Rural Hospital Transformation Plan may only be utilized for site improvements associated with a hospital transformation plan approved by the Department of Health and Human Services.

(6) P240 - Department of Natural Resources

Outreach Programs $ 400,000

(7) P320 - Department of Commerce

Military Base Task Force $ 500,000

(8) E240 - Office of Adjutant General

SC Military Museum $ 660,000

(9) P320 - Department of Commerce

2015 Flood - Non-CDBG - Disaster Recovery $ 250,000

(10) U300 - Division of Aeronautics

Security System $ 100,000

(11) D100 - State Law Enforcement Division

(a) Counter Terrorism/Arson Equipment $ 448,000

(b) First Responder PTSD Treatment $ 500,000

(12) P280 - Department of Parks, Recreation and Tourism

Hurricane Matthew Revenue Loss $ 2,238,206

(13) P400 - S.C. Conservation Bank

Conservation Bank Trust $ 5,000,000

(14) H730 - Department of Vocational Rehabilitation

Lander Equestrian Center PTSD Pilot $ 200,000

(15) H750 - School for the Deaf and the Blind

Campus Facility Plan $ 150,000

(16) R400 - Department of Motor Vehicles

(a) Annual Leave Payouts $ 140,000

(b) Disaster Recovery Integration $ 500,000

(17) A170 - Legislative Services

IT Disaster Recovery $ 500,000

(18) H630 - Department of Education

GSAH - Core Switch Replacement $ 60,000

(19) H710 - Wil Lou Gray Opportunity School

(a) Underground Utilities $ 100,000

(b) HVAC............................................................................................................................. $ 80,000

(20) E200 - Office of the Attorney General

ICAC Equipment, Training, and Operations $ 150,000

(21) E240 - Office of Adjutant General

(a) Shaw Airforce Base/City of Sumter Main Gate Refurbishment $ 150,000

(b) SC State Guard Uniforms $ 100,000

(22) H870 - State Library

Building Maintenance $ 90,000

(23) R520 - State Ethics Commission

(a) Additional Office Space/Rent Increase $ 15,000

(b) New Administrative Assistants Operating Expenses $ 10,000

(24) H790 - Department of Archives and History

Conservation of South Carolinas Constitutions $ 200,000

(25) E240 - Office of Adjutant General

Youth Challenge - POST Challenge $ 500,000

(26) Y140 - State Ports Authority

Jasper Ocean Terminal, Channel, and Supporting Infrastructure $ 1,000,000

(27) P280 - Department of Parks, Recreation and Tourism

Parks Recreation Development Fund $ 3,000,000

(28) P120 - Forestry Commission

Firefighter Safety and Public Protection - Equipment................................................................................................................................ $ 1,000,000

(29) E240 - Office of Adjutant General

2014 Winter Storm Local Matching Funds $ 1,677,193

(29.1) The funds appropriated to the Office of Adjutant General in item (29) for 2014 Winter Storm Local Matching Funds, shall be disbursed to eligible counties and municipalities to offset storm cleanup expenses associated with the 2014 Winter Storm during states of emergency declared by Executive Orders 2014-06 and 2014-11. A county or municipality is eligible for disbursement if the county or municipality was eligible for reimbursement by the Federal Emergency Management Agency (FEMA), but was not reimbursed due to local match requirements. The amount reimbursed to each eligible county or municipality shall not exceed more than thirty-three percent of the county or municipalitys remaining unreimbursed total non-federal aid share from the 2014 Winter Storm.

(30) E240 - Office of Adjutant General

Town of Nichols Loan........................................................................................................... $ 1

(31) D100 - State Law Enforcement Division

(a) Forensics Equipment....................................................................................................... $ 1

(b) Alcohol Enforcement/Narcotics Equipment.................................................................... $ 1

(32) E280 - Election Commission

Refresh of Current Statewide Voting System......................................................................... $ 1

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

118.14. (SR: Lottery Reserve Trust Fund) Effective July 1, 2018, there is created, within the Office of the State Treasurer, the Lottery Reserve Trust Fund that shall be separate and distinct from the General Fund and any other lottery account. All net lottery proceeds, investment earnings, and unclaimed prize funds received in the current fiscal year above the amounts certified by the Board of Economic Advisors or any amount appropriated by the General Assembly shall be deposited into the Lottery Reserve Trust Fund. All interest or income earned by the fund must be retained in the account unless appropriated by the General Assembly for the purpose of increased scholarship obligations or other liabilities.

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; and

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

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;

(2) P320 - Department of Commerce

(a) Locate SC $ 4,000,000;

(b) Applied Research Centers $ 1,000,000;

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

(3) P280 - Department of Parks, Recreation and Tourism

Parks and Recreation Development Fund $ 4,119,137;

(4) J020 - Department of Health and Human Services

Medical Contracts $ 2,000,000;

(5) P120 - Forestry Commission

Firefighting Equipment $ 1,500,000;

(6) J040 - Department of Health and Environmental Control

Water Quality $ 1,000,000;

(7) E280 - Election Commission

Special Election Fund Recoupment $ 650,000;

(8) H710 - Wil Lou Gray Opportunity School

Capital Improvements $ 500,000;

(9) P240 - Department of Natural Resources

Statewide Public Wildlife and Fisheries Management Projects $ 500,000;

(10) H210 - Lander University

Lander Equestrian Center PTSD Program $ 500,000;

(11) H910 - Arts Commission

SC Childrens Theatre $ 500,000;

(11.1) The funds appropriated to the Arts Commission in item (11) 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.

(12) H790 - Department of Archives and History

(a) Conservation of South Carolinas Constitutions $ 200,000;

(b) Charleston Library Society Beaux Arts Building $ 250,000;

(13) N120 - Department of Juvenile Justice

Child Advocacy Centers $ 170,000;

(14) C050 - Administrative Law Court

Technology Upgrades $ 80,000; and

(15) N200 - Law Enforcement Training Council

Criminal Justice Academy Clothing and Equipment for Expansion of Training $ 45,075.

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

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.