South Carolina Legislature


 

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H*3546
Session 110 (1993-1994) 

H*3546(Rat #0276, Act #0181)  General Bill, By Sheheen, Boan, R.S. Corning, 
B.H. Harwell, J.H. Hodges, Jennings, P.H. Thomas and Wilkins

Similar(H 3611) A Bill to amend Title 1, Code of Laws of South Carolina, 1976, relating to administration of government by adding Chapter 30, so as to establish within the Executive Branch of State Government nineteen departments and to establish within each department certain divisions composed of specified state agencies, to provide for the organization, governance, duties, functions, and procedures of the various departments and divisions, and for the manner of selection, terms, and removal of department heads, board and commission members, and other officials, to provide that certain other agencies other agencies or departments of state government shall perform their duties and functions as a part of and under the supervision of designated Constitutional or statutory officers, to amend Chapter 23 of Title 1 of the 1976 Code, relating to state agency rule making and adjudication of contested cases by adding Article 5, so as to establish the South Carolina Administrative Law Judge Division the judges of which shall hear, determine, and preside over contested cases of certain state agencies, departments, divisions, and commissions, to amend the State Administrative Procedures Act so as to revise the manner in which regulations are approved and take effect, to abolish specified boards, commissions, and committees of this State, to provide for transitional provisions in regard to this Act, to provide for effective dates, and to amend certain Sections.-short title 02/23/93 House Introduced and read first time HJ-8 02/23/93 House Referred to Committee on Judiciary HJ-8 03/08/93 House Recalled from Committee on Judiciary HJ-32 03/09/93 House Objection by Rep. Wilkins, Hodges, McLeod, Beatty & Haskins HJ-11 03/09/93 House Amended HJ-31 03/09/93 House Debate interrupted HJ-96 03/10/93 House Amended HJ-14 03/10/93 House Debate interrupted HJ-150 03/11/93 House Amended HJ-25 03/11/93 House Read second time HJ-74 03/11/93 House Roll call Yeas-103 HJ-74 03/25/93 House Amended HJ-20 03/25/93 House Read third time and sent to Senate HJ-21 03/25/93 House Roll call Yeas-090 HJ-21 03/30/93 Senate Introduced and read first time SJ-16 03/30/93 Senate Referred to Committee on Judiciary SJ-27 05/11/93 Senate Recalled from Committee on Judiciary SJ-8 05/11/93 Senate Read second time SJ-20 05/11/93 Senate Ordered to third reading with notice of amendments SJ-20 05/13/93 Senate Debate adjourned SJ-27 05/17/93 Senate Amended SJ-19 05/17/93 Senate Read third time and returned to House with amendments SJ-55 05/20/93 House Senate amendment amended HJ-26 05/20/93 House Returned to Senate with amendments HJ-27 05/20/93 Senate Non-concurrence in House amendment SJ-34 05/25/93 House House insists upon amendment and conference committee appointed Reps. Hodges, Clyborne & Boan HJ-5 05/25/93 Senate Conference committee appointed Sens. Moore, Stilwell, Jackson SJ-12 06/02/93 Senate Free conference powers granted SJ-85 06/02/93 Senate Free conference committee appointed Sens. Moore, Stilwell, Jackson SJ-85 06/02/93 House Free conference powers granted HJ-100 06/02/93 House Free conference committee appointed Boan, Hodges & Clyborne HJ-101 06/14/93 House Free conference report received and adopted HJ-6 06/14/93 Senate Free conference report received and adopted SJ-24 06/14/93 Senate Ordered enrolled for ratification SJ-28 06/15/93 Ratified R 276 06/18/93 Signed By Governor 06/18/93 Effective date Act No. 181


No. 181

(R276, H3546)

AN ACT TO AMEND TITLE 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ADMINISTRATION OF GOVERNMENT BY ADDING CHAPTER 30, SO AS TO ESTABLISH WITHIN THE EXECUTIVE BRANCH OF STATE GOVERNMENT NINETEEN DEPARTMENTS AND TO ESTABLISH WITHIN EACH DEPARTMENT CERTAIN DIVISIONS COMPOSED OF SPECIFIED STATE AGENCIES, TO PROVIDE FOR THE ORGANIZATION, GOVERNANCE, DUTIES, FUNCTIONS, AND PROCEDURES OF THE VARIOUS DEPARTMENTS AND DIVISIONS, AND FOR THE MANNER OF SELECTION, TERMS, AND REMOVAL OF DEPARTMENT HEADS, BOARD AND COMMISSION MEMBERS, AND OTHER OFFICIALS, TO PROVIDE THAT CERTAIN OTHER AGENCIES OR DEPARTMENTS OF STATE GOVERNMENT SHALL PERFORM THEIR DUTIES AND FUNCTIONS AS A PART OF AND UNDER THE SUPERVISION OF DESIGNATED CONSTITUTIONAL OR STATUTORY OFFICERS, TO AMEND CHAPTER 23 OF TITLE 1 OF THE 1976 CODE, RELATING TO STATE AGENCY RULE MAKING AND ADJUDICATION OF CONTESTED CASES BY ADDING ARTICLE 5, SO AS TO ESTABLISH THE SOUTH CAROLINA ADMINISTRATIVE LAW JUDGE DIVISION THE JUDGES OF WHICH SHALL HEAR, DETERMINE, AND PRESIDE OVER CONTESTED CASES OF CERTAIN STATE AGENCIES, DEPARTMENTS, DIVISIONS, AND COMMISSIONS, TO AMEND SECTIONS 1-23-110, 1-23-115, 1-23-120, 1-23-130, 1-23-160, 1-23-310, 1-23-320, 1-23-380, AND TO ADD SECTION 1-23-111 RELATING TO THE STATE ADMINISTRATIVE PROCEDURES ACT SO AS TO REVISE THE MANNER IN WHICH REGULATIONS ARE PROMULGATED, APPROVED, AND TAKE EFFECT, TO ABOLISH SPECIFIED BOARDS, COMMISSIONS, AND COMMITTEES OF THIS STATE, TO PROVIDE FOR TRANSITIONAL PROVISIONS IN REGARD TO THIS ACT, TO PROVIDE FOR EFFECTIVE DATES, AND TO AMEND SECTIONS 1-1-110, 1-3-210, 1-3-220, 1-3-240, 1-3-250, 1-15-10, 1-20-50, 1-25-60, 2-7-71, 2-7-73, 2-7-105, 2-13-190, 2-13-240, 2-15-61, 2-17-15, 2-19-30, 2-19-70, 2-22-20, 2-23-10, 2-67-10, 2-67-30, 3-3-210, 3-5-40, 3-5-50, 3-5-60, 3-5-80, 3-5-100, 3-5-120, 3-5-130, 3-5-140, 3-5-150, 3-5-160, 3-5-170, 3-5-190, 3-5-320, 3-5-330, 3-5-340, 3-5-360, 4-9-155, 4-10-25, 4-10-60, 4-10-80, 4-10-90, 4-29-67, 5-3-90, 5-3-110, 5-3-300, 5-7-110, 5-27-510, 6-9-60, 7-13-710, 8-1-80, 8-1-100, 8-11-10, 8-11-945, 8-13-740, 8-13-910, 8-17-370, 8-21-310, 8-21-770, 8-21-780, 8-21-790, 9-1-60, 9-11-180, 10-5-230, 10-5-240, 10-5-270, 10-5-300, 10-5-320, 10-7-10, 10-9-320, 10-11-50, 10-11-80, 11-9-820, 11-9-825, 11-11-10, 11-17-10, 11-35-45, 11-35-710, 11-35-1520, 11-35-5230, 11-35-5250, 11-35-5270, 11-37-200, 12-2-10, 12-4-10, 12-4-30, 12-4-335, 12-4-350, 12-4-370, 12-7-455, 12-7-460, 12-7-1220, 12-7-1225, 12-7-1250, 12-7-1590, 12-7-2010, 12-7-2230, 12-7-2415, 12-7-2590, 12-7-2610, 12-9-130, 12-9-310, 12-9-420, 12-9-630, 12-9-860, 12-13-70, 12-16-1110, 12-19-20, 12-19-60, 12-19-100, 12-21-100, 12-21-320, 12-21-470, 12-21-660, 12-21-780, 12-21-820, 12-21-1060, 12-21-1110, 12-21-1320, 12-21-1540, 12-21-1550, 12-21-1570, 12-21-1580, 12-21-1590, 12-21-1610, 12-21-1840, 12-21-2420, 12-21-2719, 12-21-2720, 12-21-2726, 12-21-3320, 12-21-3441, 12-21-3590, 12-21-3600, 12-23-310, 12-23-815, 12-23-820, 12-23-830, 12-27-270, 12-27-380, 12-27-390, 12-27-405, 12-27-430, 12-27-1210, 12-27-1220, 12-27-1230, 12-27-1240, 12-27-1250, 12-27-1260, 12-27-1290, 12-27-1320, 12-27-1510, 12-29-20, 12-29-110, 12-29-150, 12-31-20, 12-31-50, 12-31-210, 12-31-230, 12-31-240, 12-31-250, 12-31-260, 12-31-270, 12-31-280, 12-31-420, 12-31-610, 12-31-620, 12-31-640, 12-33-70, 12-33-420, 12-33-480, 12-33-485, 12-33-620, 12-33-630, 12-36-1370, 12-36-1710, 12-36-2120, 12-36-2660, 12-37-220, 12-37-380, 12-37-970, 12-37-975, 12-37-1120, 12-37-1130, 12-37-1410, 12-37-1420, 12-37-1610, 12-37-2110, 12-37-2410, 12-37-2650, 12-37-2660, 12-37-2670, 12-37-2680, 12-37-2700, 12-37-2725, 12-37-2727, 12-39-180, 12-43-210, 12-43-220, 12-43-280, 12-43-300, 12-43-305, 12-43-320, 12-43-335, 12-45-70, 12-47-10, 12-47-60, 12-49-90, 12-49-271, 12-49-290, 12-51-135, 12-53-10, 12-53-210, 12-53-220, 12-54-10, 12-54-230, 12-54-240, 12-54-250, 12-54-260, 12-54-420, 12-54-430, 12-54-720, TITLE 13, CHAPTER 1, ARTICLE 1; SECTIONS 13-7-20, 13-7-70, 13-7-160, 13-11-20, 13-11-80, 13-19-160, 14-7-130, 14-23-1140, 15-9-210, 15-9-270, 15-9-280, 15-9-310, 15-9-350, 15-9-360, 15-9-370, 15-9-380, 15-9-390, 15-9-410, 15-9-415, 16-3-1110, 16-3-1120, 16-11-340, 16-23-20, 16-27-60, 16-27-80, 17-13-80, 19-5-30, 20-7-121, 20-7-128, 20-7-410, 20-7-600, 20-7-630, 20-7-655, 20-7-770, 20-7-780, 20-7-1330, 20-7-1490, 20-7-1645, 20-7-2095, 20-7-2115, 20-7-2125, 20-7-2155, 20-7-2170, 20-7-2175, 20-7-2180, 20-7-2185, 20-7-2190, 20-7-2195, 20-7-2200, 20-7-2203, 20-7-2205, 20-7-2260, 20-7-2310, 20-7-2379, 20-7-2640, 20-7-2700, 20-7-2760, 20-7-2830, 20-7-2880, 20-7-2930, 20-7-2940, 20-7-3050, 20-7-3100, 20-7-3110, 20-7-3120, 20-7-3130, 20-7-3170, 20-7-3180, 20-7-3190, 20-7-3200, 20-7-3210, 20-7-3230, 20-7-3235, 20-7-3240, 20-7-3270, 20-7-3280, 20-7-3300, 20-7-3310, 20-7-3350, 20-7-3360, 20-7-5420, 20-7-5610, 20-7-5630, 20-7-5660, 20-7-5670, 22-1-30, 23-3-10, 23-3-160, 23-9-10, 23-9-60, 23-9-65, 23-9-70, 23-9-90, 23-9-150, 23-9-155, 23-9-170, 23-9-180, 23-9-210, 23-10-10, 23-23-30, 23-25-20, 23-25-40, 23-28-120, 23-31-140, 23-33-20, 23-35-70, 23-35-140, 23-36-80, 23-36-160, 23-41-30, 23-43-20, 23-43-70, 23-43-110, 23-43-140, 23-43-180, 24-1-40, 24-1-90, 24-1-100, 24-1-110, 24-1-120, 24-1-130, 24-1-140, 24-1-145, 24-1-150, 24-1-160, 24-1-170, 24-1-200, 24-1-210, 24-1-220, 24-1-230, 24-1-250, 24-1-260, 24-1-270, 24-3-20, 24-3-30, 24-3-40, 24-3-60, 24-3-70, 24-3-80, 24-3-90, 24-3-110, 24-3-130, 24-3-131, 24-3-140, 24-3-150, 24-3-160, 24-3-170, 24-3-180, 24-3-190, 24-3-200, 24-3-210, 24-3-315, 24-3-320, 24-3-330, 24-3-340, 24-3-360, 24-3-380, 24-3-390, 24-3-400, 24-3-410, 24-3-510, 24-3-520, 24-3-530, 24-3-540, 24-3-550, 24-3-710, 24-3-720, 24-3-730, 24-3-740, 24-3-750, 24-3-760, 24-3-920, 24-3-950, 24-3-960, 24-7-90, 24-9-10, 24-9-20, 24-9-30, 24-11-30, 24-13-210, 24-13-230, 24-13-270, 24-13-640, 24-13-710, 24-13-940, 24-13-1310, 24-13-1320, 24-13-1330, 24-13-1340, 24-13-1520, 24-13-1590, 24-19-10, 24-19-20, 24-19-30, 24-19-40, 24-19-60, 24-19-80, 24-19-90, 24-19-100, 24-19-110, 24-19-160, 24-21-10, 24-21-11, 24-21-12, 24-21-13, 24-21-60, 24-21-70, 24-21-220, 24-21-221, 24-21-230, 24-21-250, 24-21-260, 24-21-280, 24-21-290, 24-21-485, 24-21-620, 24-21-645, 24-21-650, 24-21-930, 24-22-20, 24-22-160, 24-23-40, 24-23-110, 24-23-115, 24-23-220, 24-25-40, 24-25-50, 24-25-70, TITLE 25, CHAPTER 11; SECTIONS 27-18-20, 27-31-100, 30-4-40, 31-1-30, 31-1-120, 31-1-140, 31-1-150, 31-1-160, 31-1-180, 31-1-200, 31-1-210, 31-1-220, TITLE 31, CHAPTER 1, ARTICLES 5 AND 7; SECTIONS 31-3-20, 31-3-340, 31-3-370, 31-3-390, 31-3-750, 31-17-340, 31-17-360, 31-17-370, 31-17-510, 33-1-210, 33-14-200, 33-14-220, 33-14-400, 33-15-300, 33-15-310, 33-15-330, 33-16-101, 33-31-60, 33-37-250, 33-37-460, 33-39-460, 34-29-160, 36-9-307, 36-9-319, 37-6-605, 38-1-10, 38-1-20, 38-2-10, TITLE 38, CHAPTERS 3, 5, 7, 9, 11, AND 13, SECTIONS 38-15-10, 38-15-20, 38-15-30, 38-15-50, 38-17-30, 38-17-50, 38-17-60, 38-17-70, 38-17-90, 38-17-120, 38-17-140, 38-17-150, 38-17-170, 38-19-40, 38-19-50, 38-19-440, 38-19-470, 38-19-480, 38-19-490, 38-19-610, 38-19-640, 38-19-650, 38-19-825, 38-21-10, 38-21-20, 38-21-30, 38-21-50, 38-21-60, 38-21-70, 38-21-90, 38-21-100, 38-21-110, 38-21-120, 38-21-125, 38-21-130, 38-21-140, 38-21-160, 38-21-170, 38-21-190, 38-21-200, 38-21-210, 38-21-220, 38-21-240, 38-21-250, 38-21-260, 38-21-270, 38-21-280, 38-21-290, 38-21-300, 38-21-310, 38-21-320, 38-21-330, 38-21-340, 38-21-350, 38-21-370, 38-23-20, 38-23-40, 38-23-50, 38-23-70, 38-23-80, 38-23-100, 38-25-10, 38-25-110, 38-25-160, 38-25-310, 38-25-510, 38-25-520, 38-25-540, 38-25-550, 38-25-570, TITLE 38, CHAPTER 26; TITLE 38, CHAPTER 27, ARTICLES 1 AND 3; SECTIONS 38-27-310, 38-27-320, 38-27-330, 38-27-350, 38-27-360, 38-27-370, 38-27-390, 38-27-400, 38-27-410, 38-27-500, 38-27-520, 38-27-640, 38-27-660, 38-27-670, 38-27-680, 38-27-910, 38-27-920, 38-27-930, 38-27-940, 38-27-950, TITLE 38, CHAPTERS 29, 31, AND 33; SECTIONS 38-35-10, 38-35-40, 38-35-50, 38-37-60, 38-37-220, 38-37-230, 38-37-240, 38-37-250, 38-37-260, 38-37-300, TITLE 38, CHAPTER 37, ARTICLE 5; SECTIONS 38-37-710, 38-37-720, 38-37-900, 38-37-910, 38-37-920, 38-37-1310, 38-37-1360, TITLE 38, CHAPTER 37, ARTICLE 13; TITLE 38, CHAPTERS 39 AND 41; SECTIONS 38-43-20, 38-43-30, 38-43-40, 38-43-70, 38-43-100, 38-43-105, 38-43-106, 38-43-110, 38-43-130, 38-43-230, 38-43-250, 38-43-260, 38-44-30, 38-44-40, 38-44-50, 38-44-70, 38-44-80, TITLE 38, CHAPTER 45; SECTIONS 38-46-20, 38-46-30, 38-46-60, 38-46-70, 38-46-100, 38-46-110, 38-46-120, TITLE 38, CHAPTER 47; SECTIONS 38-49-20, 38-51-20, 38-51-30, 38-51-60, 38-53-10, 38-53-20, 38-53-80, 38-53-90, 38-53-100, 38-53-110, 38-53-130, 38-53-140, 38-53-150, 38-53-160, 38-53-170, 38-53-200, 38-53-210, 38-53-220, 38-53-230, 38-53-310, 38-53-320, 38-55-20, 38-55-40, 38-55-60, 38-55-80, 38-55-120, 38-55-140, 38-55-180, 38-57-150, 38-57-200, 38-57-210, 38-57-220, 38-57-230, 38-57-240, 38-57-250, 38-57-260, 38-57-270, 38-57-280, 38-57-290, 38-57-300, 38-57-310, 38-59-30, TITLE 38, CHAPTER 61; SECTIONS 38-63-220, 38-63-250, 38-63-520, 38-63-580, 38-63-590, 38-63-600, 38-63-610, 38-63-650, 38-65-50, 38-65-210, 38-67-10, 38-67-30, 38-67-40, 38-69-120, 38-69-230, 38-69-320, 38-70-10, 38-70-20, 38-70-30, 38-70-40, 38-70-50, 38-70-60, 38-71-70, 38-71-190, 38-71-310, 38-71-315, 38-71-320, 38-71-325, 38-71-330, 38-71-335, 38-71-340, 38-71-370, 38-71-410, 38-71-510, 38-71-530, 38-71-540, 38-71-550, 38-71-720, 38-71-730, 38-71-735, 38-71-750, 38-71-920, 38-71-950, 38-71-970, 38-71-980, 38-71-1010, 38-71-1020, 38-71-1110, 38-72-40, 38-72-60, TITLE 38, CHAPTER 73, ARTICLES 1 THROUGH 15; SECTIONS 38-74-10, 38-74-20, 38-74-60, 38-74-70, 38-75-230, TITLE 38, CHAPTER 75, ARTICLE 5; SECTIONS 38-75-750, 38-75-780, 38-75-930, 38-75-940, 38-75-950, 38-75-960, 38-75-980, 38-77-10, 38-77-30, 38-77-110, 38-77-113, 38-77-115, 38-77-120, 38-77-150, 38-77-200, 38-77-260, 38-77-280, 38-77-320, 38-77-330, 38-77-340, 38-77-350, 38-77-510, 38-77-520, 38-77-530, 38-77-570, 38-77-580, 38-77-590, 38-77-600, 38-77-610, TITLE 38, CHAPTER 77, ARTICLE 9; SECTION 38-77-1120, TITLE 38, CHAPTER 79, ARTICLE 1; SECTION 38-79-430, TITLE 38, CHAPTERS 81 AND 83; SECTIONS 38-85-70, 38-85-80, 38-87-20, 38-87-30, 38-87-40, 38-87-50, 38-87-80, 38-87-110, 38-87-140, TITLE 38, CHAPTER 89; SECTIONS 39-9-230, 39-15-170, 39-41-40, 39-57-20, 40-1-140, 40-1-310, 40-1-350, 40-3-40, 40-3-120, 40-3-135, 40-3-140, 40-6-40, 40-6-45, 40-6-180, 40-6-220, 40-7-60, 40-7-270, 40-9-30, 40-9-31, 40-9-36, 40-9-95, 40-11-40, 40-11-60, 40-11-90, 40-11-150, 40-11-180, 40-11-190, 40-11-300, 40-11-320, 40-13-60, 40-13-80, 40-13-260, 40-15-40, 40-15-50, 40-15-185, 40-15-200, 40-15-210, 40-15-215, 40-15-370, 40-15-380, 40-19-10, 40-19-70, 40-19-80, 40-19-160, 40-19-170, 40-22-150, 40-22-420, 40-22-440, 40-23-20, 40-23-40, 40-23-127, TITLE 40, CHAPTER 28; SECTIONS 40-29-20, 40-29-50, 40-29-100, 40-29-110, 40-29-160, 40-29-210, 40-33-250, 40-33-931, 40-33-960, 40-35-70, 40-35-135, 40-36-160, 40-37-50, 40-37-230, 40-38-60, 40-38-230, 40-43-135, 40-43-260, 40-43-410, 40-47-170, 40-47-200, 40-47-210, 40-47-570, 40-47-630, 40-47-660, 40-51-160, 40-55-140, 40-55-160, 40-56-10, 40-56-20, 40-57-170, 40-57-220, 40-59-50, 40-59-60, 40-59-90, 40-59-95, 40-59-130, 40-60-160, 40-60-170, 40-60-210, 40-61-40, 40-61-110, 40-63-10, 40-63-30, 40-63-120, TITLE 40, CHAPTER 65; SECTIONS 40-67-100, 40-67-170, 40-69-70, 40-69-150, 40-69-210, 40-69-420, 40-75-40, 40-75-180, 40-77-100, 40-77-110, 40-77-320, 41-1-10, 41-3-10, 41-3-30, 41-3-40, 41-3-50, 41-3-55, 41-3-60, 41-3-70, 41-3-80, 41-3-100, 41-3-110, 41-3-120, 41-3-130, 41-3-140, 41-3-510, 41-3-520, 41-3-530, 41-3-540, TITLE 41, CHAPTER 15, ARTICLE 6; SECTIONS 41-18-90, 41-41-40, 41-44-60, 41-44-80, 42-1-490, 42-1-500, 42-7-10, 42-7-20, 42-7-30, 42-7-40, 42-7-70, 42-7-75, 42-7-90, 42-7-200, 42-7-310, 43-1-10, 43-1-50, 43-1-60, 43-1-70, 43-1-170, 43-1-190, 43-1-200, 43-1-210, TITLE 43, CHAPTER 3; SECTIONS 43-5-10, 43-5-75, 43-5-120, 43-5-150, 43-5-170, 43-5-220, 43-5-550, 43-5-620, 43-21-10, 43-21-20, 43-21-40, 43-21-50, 43-21-60, 43-21-70, 43-21-80, 43-21-100, 43-21-120, 43-21-130, 43-21-150, 43-21-160, 43-21-170, 43-21-180, 44-1-20, 44-1-40, 44-1-50, 44-1-100, 44-2-75, 44-3-110, 44-3-150, 44-6-5, 44-6-10, 44-6-30, 44-6-40, 44-6-45, 44-6-50, 44-6-70, 44-6-80, 44-6-90, 44-6-100, 44-6-140, 44-6-146, 44-6-150, 44-6-155, 44-6-160, 44-6-170, 44-6-180, 44-6-190, 44-6-220, 44-6-300, 44-6-310, 44-6-320, 44-6-400, 44-6-410, 44-6-420, 44-6-430, 44-6-440, 4-6-460, 44-6-470, 44-6-500, 44-6-520, 44-6-530, 44-9-20, 44-9-30, 44-9-40, 44-9-50, 44-9-60, 44-9-160, 44-15-60, 44-15-80, TITLE 44, CHAPTER 20; SECTIONS 44-22-10, 44-22-50, 44-22-100, 44-22-110, 44-23-10, 44-23-210, 44-23-220, 44-23-410, 44-25-30, 44-26-10, 44-26-70, 44-26-80, 44-26-120, 44-26-170, 44-28-20, 44-28-40, 44-28-60, 44-28-80, 44-28-360, 44-28-370, 44-29-210, 44-30-10, 44-36-20, 44-38-30, TITLE 44, CHAPTER 38, ARTICLE 3; SECTIONS 44-40-30, 44-43-30, 44-43-50, 44-43-70, TITLE 44, CHAPTER 49; SECTIONS 44-52-10, 44-53-620, 44-53-630, 44-53-640, 44-53-650, 44-53-660, 44-53-710, 44-53-740, 44-53-1320, 44-53-1340, 44-53-1360, 44-53-1380, 44-53-1390, 44-53-1430, 44-53-1440, 44-53-1450, 44-53-1470, 44-55-20, 44-55-40, 44-55-45, 44-55-60, 44-55-2320, 44-55-2360, 44-56-20, 44-56-50, 44-56-130, 44-56-840, 44-61-70, 44-63-30, 44-63-110, 44-65-80, 44-67-30, 44-67-50, 44-85-20, 44-85-30, 44-85-50, 44-93-20, 44-93-50, 44-93-130, 44-96-60, 44-96-120, 44-96-140, 44-96-160, 44-96-170, 44-96-180, 44-96-200, 44-96-220, 44-96-250, 44-96-280, 44-107-80, 46-13-60, 46-13-150, 46-51-20, 47-3-310, 47-3-320, 47-3-420, 47-3-510, 47-3-550, 47-5-30, 48-1-85, 48-1-110, 48-9-30, 48-9-40, 48-9-230, 48-9-260, 48-9-270, 48-9-280, 48-9-290, 48-9-300, 48-9-310, 48-9-320, TITLE 48, CHAPTER 9, ARTICLES 5, 7, AND 9; SECTIONS 48-9-1210, 48-9-1230, 48-9-1320, 48-9-1810, 48-9-1820, 48-9-1840, 48-9-1850, 48-11-10, 48-11-15, 48-11-90, 48-11-100, 48-11-185, 48-11-190, 48-11-210, 48-14-20, 48-14-40, 48-14-50, 48-14-60, 48-14-70, 48-14-80, 48-14-85, 48-14-90, 48-14-110, 48-14-120, 48-14-130, 48-14-140, 48-14-160, 48-14-170, TITLE 48, CHAPTER 18; SECTIONS 48-20-30, 48-20-40, 48-20-110, 48-20-210, 48-20-270, 48-20-280, 48-21-20, 48-27-70, 48-27-200, 48-30-30, 48-30-50, 48-30-70, 48-30-80, TITLE 48, CHAPTER 39; TITLE 48, CHAPTER 43; SECTIONS 48-45-40, 48-45-80, 48-47-175, 48-55-10, 49-1-15, TITLE 49, CHAPTERS 3, 4, 5, 6, 11, 21, 23 AND 25; SECTIONS 49-27-10, 49-27-70, 49-27-80, TITLE 49, CHAPTER 29; TITLE 50, CHAPTERS 1, 3, 5, 7, 9, 11, 13, 15 AND 17; SECTION 50-18-10, TITLE 50, CHAPTERS 19, 20, 21, 23, AND 25; TITLE 51, CHAPTER 1, ARTICLE 1; SECTIONS 51-3-145, 51-3-160, TITLE 51, CHAPTER 11; SECTION 51-15-540, TITLE 51, CHAPTER 17; SECTIONS 51-19-10, 52-7-15, 52-7-20, 52-7-30, 54-15-320, TITLE 55, CHAPTERS 1 AND 5; SECTIONS 55-8-10, 55-8-50, 55-8-170, TITLE 55, CHAPTER 9; SECTIONS 55-11-10, 55-11-520, 55-15-10, 56-1-10, 56-1-80, 56-1-90, 56-1-135, 56-1-145, 56-1-220, 56-1-225, 56-1-270, 56-1-280, 56-1-290, 56-1-300, 56-1-310, 56-1-320, 56-1-330, 56-1-340, 56-1-350, 56-1-360, 56-1-365, 56-1-370, 56-1-380, 56-1-390, 56-1-400, 56-1-410, 56-1-420, 56-1-460, 56-1-463, 56-1-475, 56-1-510, 56-1-520, 56-1-530, 56-1-540, 56-1-550, 56-1-630, 56-1-740, 56-1-745, 56-1-746, 56-1-770, 56-1-790, 56-1-800, 56-1-810, 56-1-820, 56-1-830, 56-1-840, 56-1-850, 56-1-1020, 56-1-1030, 56-1-1090, 56-1-1100, 56-1-1120, 56-1-1130, 56-1-1320, 56-1-1330, 56-1-1340, 56-1-1730, 56-1-1760, 56-1-2050, 56-1-2100, 56-1-2110, 56-1-2130, 56-1-2140, 56-3-20, 56-3-115, 56-3-250, 56-3-255, 56-3-360, 56-3-650, 56-3-790, 56-3-860, 56-3-910, 56-3-1150, 56-3-1160, 56-3-1330, 56-3-1340, 56-3-1710, 56-3-1750, 56-3-1850, 56-3-1910, 56-3-1950, 56-3-1960, 56-3-1971, 56-3-1972, 56-3-1973, 56-3-1974, 56-3-2010, 56-3-2020, 56-3-2060, 56-3-2150, 56-3-2210, 56-3-2230, 56-3-2250, 56-3-2320, 56-3-2600, 56-3-2710, 56-3-2810, 56-3-3310, 56-3-3710, 56-3-4310, 56-3-4910, 56-3-5920, 56-5-60, 56-5-370, 56-5-910, 56-5-920, 56-5-930, 56-5-935, 56-5-1520, 56-5-1530, 56-5-1540, 56-5-1560, 56-5-1570, 56-5-1890, 56-5-1910, 56-5-1980, 56-5-2120, 56-5-2330, 56-5-2540, 56-5-2550, 56-5-2585, 56-5-2715, 56-5-2730, 56-5-2945, 56-5-2950, 56-5-2990, 56-5-3660, 56-5-3670, 56-5-3680, 56-5-3690, 56-5-3750, 56-5-3880, 56-5-4040, 56-5-4060, 56-5-4070, 56-5-4075, 56-5-4095, 56-5-4140, 56-5-4145, 56-5-4150, 56-5-4160, 56-5-4170, 56-5-4175, 56-5-4180, 56-5-4185, 56-5-4190, 56-5-4200, 56-5-4205, 56-5-4210, 56-5-4220, 56-5-4720, 56-5-4840, 56-5-4880, 56-5-4940, 56-5-5010, 56-5-5320, 56-5-5330, 56-5-5340, 56-5-5350, 56-5-5360, 56-5-5400, 56-5-5410, 56-5-5420, 56-5-5430, 56-5-5670, 56-5-5810, 56-5-5830, 56-5-5850, 56-5-5860, 56-5-5870, 56-5-6140, 56-7-10, 56-7-20, 56-7-30, 56-7-50, 56-9-20, 56-10-10, 56-10-20, 56-10-40, 56-10-45, 56-10-210, 56-10-220, 56-10-240, 56-10-245, 56-10-280, 56-10-290, 56-15-10, 56-15-50, 56-15-320, 56-16-10, 56-16-20, 56-16-110, 56-16-150, 56-19-10, 56-19-80, 56-19-390, 56-19-425, 56-23-10, 56-23-40, 56-23-70, 56-23-85, 56-25-10, 56-27-10, 56-29-20, 56-29-50, 56-31-50, TITLE 57, CHAPTER 1, ARTICLES 1, 3, AND 5; TITLE 57, CHAPTER 3, ARTICLE 1; TITLE 57, CHAPTER 3, ARTICLE 7; TITLE 57, CHAPTER 5, ARTICLES 1 AND 3; SECTIONS 57-5-710, 57-5-720, 57-5-760, 57-5-870, 57-5-1010, 57-5-1320, 57-5-1335, 57-5-1350, 57-5-1450, 57-5-1610, 57-5-1620, 57-5-1630, 57-5-1660, TITLE 57, CHAPTER 11, ARTICLE 3; SECTIONS 57-13-10, 57-13-40, 57-13-130, 57-15-140, TITLE 57, CHAPTER 23; TITLE 57, CHAPTER 25, ARTICLE 3; SECTIONS 57-25-430, 57-25-440, 57-25-460, 57-25-480, 57-25-490, 57-25-640, 57-25-650, 57-25-670, 57-25-690, 57-25-700, 57-27-20, 57-27-90, 58-1-30, 58-1-40, 58-3-20, 58-3-24, 58-3-100, 58-12-130, 58-15-1625, 58-15-1650, 58-15-1680, 58-15-1910, 58-15-1920, 58-15-1930, 58-15-1940, 58-15-1950, 58-15-2120, 58-15-2130, 58-17-1450, 58-23-1220, 58-25-80, 58-27-690, 58-33-140, 58-35-50, 59-20-20, 59-53-10, 59-53-420, 59-53-2050, 59-54-40, 59-67-20, 59-67-260, 59-67-540, 59-67-570, 59-117-90, 59-137-50, TITLE 61, CHAPTERS 1, 3, 5, 7, AND 9; SECTIONS 61-13-295, 61-13-410, 61-13-470, 61-13-500, 61-13-510, 61-13-540, 61-13-570, 61-13-620, 61-13-630, 61-13-750, 61-13-810, 61-13-835, 61-13-836, 61-13-875, 61-13-885, 62-3-203, 62-3-301, 62-3-704, 62-3-706, 62-3-1002, AND 62-5-105; TO AMEND THE 1976 CODE BY ADDING SECTIONS 1-3-215, 2-47-60, 2-68-50, 12-2-5, 12-4-15, TITLE 12, CHAPTER 4, ARTICLE 4; SECTIONS 12-27-35, 12-27-1265, TITLE 13, CHAPTER 1, ARTICLES 3, 5, 7, 9, AND 11, TITLE 13, CHAPTER 2; SECTIONS 23-3-15, 23-3-25, TITLE 23, CHAPTER 6; SECTIONS 38-1-30, 40-11-350, 40-13-300, 40-45-260, 40-73-15, 41-3-610, TITLE 48, CHAPTER 4; SECTIONS 48-9-15, 48-9-45, TITLE 48, CHAPTER 22; SECTION 49-1-16, TITLE 51, CHAPTER 1, ARTICLES 3 AND 5; TITLE 56, CHAPTER 1, ARTICLE 15; TITLE 56, CHAPTER 3, ARTICLE 47; TITLE 57, CHAPTER 3, ARTICLE 2; AND SECTION 58-3-26; AND TO AMEND THE 1976 CODE BY REPEALING SECTIONS 1-11-75, 1-20-50, 2-63-10, 8-1-90, 12-7-775, 12-27-1280, 12-27-1295, 12-27-1300, 12-27-1310, TITLE 13, CHAPTERS 3, 5, AND 9; SECTIONS 20-7-2308, 20-7-2309, 20-7-2327, 20-7-2335, 20-7-2337, 20-7-2365, 20-7-2950, 20-7-3140, 20-7-3150, 20-7-3160, 20-7-3250, 20-7-5620, 20-7-5680, 20-7-5810, 20-7-5820, 20-7-5830, 20-7-5840, 20-7-5850, 20-7-5860, 23-3-60, TITLE 23, CHAPTER 5; 23-8-10, 23-8-20, 23-8-30, 23-9-510, 23-9-520, 23-9-530, TITLE 23, CHAPTER 23, ARTICLES 1 AND 3; 23-43-50, 24-1-50, 24-1-60, 24-1-70, 24-1-80, 24-3-100, 24-21-20, 24-21-210, 24-26-10, 24-26-20, 24-26-30, 24-26-40, 24-26-50, 27-2-80, 27-2-90, 27-2-100, 38-3-20, 38-3-30, 38-3-50, 38-3-90, 40-29-60, 41-3-20, TITLE 41, CHAPTER 45; SECTIONS 42-9-380, 43-1-20, 43-1-25, 43-1-30, 43-1-40, 43-21-30, 44-1-10, 44-1-60, 44-6-20, 44-6-60, 44-6-65, 44-6-110, 44-6-120, 44-6-130, 44-96-70, 48-9-210, 48-9-220, 48-9-240, 48-9-250, 55-5-30, 55-5-40, 56-1-1400, TITLE 57, CHAPTER 3, ARTICLES 3, 5, 9, AND 11; SECTIONS 57-3-620, 57-11-40, 57-11-230, 57-11-260, 57-11-310, 57-11-400, 58-3-21, 58-3-22, 58-3-23, 58-3-25, TITLE 58, CHAPTER 19; AND SECTION 6, PART II, OF ACT 164 OF 1993, SO AS TO REVISE, ADD, OR REPEAL THEM RESPECTIVELY IN CONFORMITY WITH THE ABOVE PROVISIONS.

Be it enacted by the General Assembly of the State of South Carolina:

Departments of state government

SECTION 1. Title 1 of the 1976 Code is amended by adding Chapter 30 to read:

"CHAPTER 30

Departments of State Government

  A. General Provisions
  Section 1-30-10. (A) There are hereby created, within the executive branch of the state government, the following departments:
    1. Department of Agriculture
    2. Department of Alcohol and Other Drug Abuse Services
    3. Department of Commerce
    4. Department of Corrections
    5. Department of Disabilities and Special Needs
    6. Department of Education
    7. Department of Health and Environmental Control
    8. Department of Health and Human Services
    9. Department of Insurance
    10. Department of Juvenile Justice
    11. Department of Labor, Licensing, and Regulation
    12. Department of Mental Health
    13. Department of Natural Resources
    14. Department of Parks, Recreation and Tourism
    15. Department of Probation, Pardon and Parole
    16. Department of Public Safety
    17. Department of Revenue and Taxation
    18. Department of Social Services
    19. Department of Transportation
  (B) (1) The governing authority of each department shall be either:
    (i) a director who must be appointed by the Governor with the advice and consent of the Senate, subject to removal from office by the Governor pursuant to provisions of Section 1-3-240; or,
    (ii) a seven member board to be appointed and constituted in a manner provided for by law; or,
    (iii) in the case of the Department of Agriculture and the Department of Education, the State Commissioner of Agriculture and the State Superintendent of Education, respectively, elected to office under the Constitution of this State.
    (2) In making appointments to boards and for department directors, race, gender, and other demographic factors should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this State; however, consideration of these factors in no way creates a cause of action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. The Governor in making the appointments provided for by this section shall endeavor to appoint individuals who have demonstrated exemplary managerial skills in either the public or private sector.
  (C) Each department shall be organized into appropriate divisions by the governing authority of the department through consolidation or subdivision. The power to reorganize the department supersedes any provision of law to the contrary pertaining to individual divisions; provided, however, the dissolution of any division must receive legislative approval by authorization included in the annual general appropriations act.
  Any other approval procedures for department reorganization in effect on the effective date of this act no longer apply.
  (D) The governing authority of a department is vested with the duty of overseeing, managing, and controlling the operation, administration, and organization of the department. The governing authority has the power to create and appoint standing or ad hoc advisory committees in its discretion or at the direction of the Governor to assist the department in particular areas of public concern or professional expertise as is deemed appropriate. Such committees shall serve at the pleasure of the governing authority and committee members shall not receive salary or per diem, but shall be entitled to reimbursement for actual and necessary expenses incurred pursuant to the discharge of official duties not to exceed the per diem, mileage, and subsistence amounts allowed by law for members of boards, commissions, and committees.
  (E) The department director may appoint deputy directors to head the divisions of their department, with each deputy director managing one or more of the divisions. In making appointments race, gender, and other demographic factors should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this State; however, consideration of these factors in making an appointment in no way creates a cause of action or basis for an employee grievance for a person appointed or for a person who fails to be appointed. Deputy directors serve at the will and pleasure of the department director. The deputy director of a division is vested with the duty of overseeing, managing, and controlling the operation and administration of the division under the direction and control of the department director and performing such other duties as delegated by the department director.
  (F) (1) In the event a vacancy should occur in the office of department director at a time when the General Assembly is not in session, the Governor may temporarily fill the vacancy pursuant to Section 1-3-210.
    (2) Notwithstanding the provisions of Subitem (F)(1), as of July 1, 1993, for each department created pursuant to the provisions of this act which must be governed by a single director, an initial interim director shall serve as the governing authority, serving until January 31, 1994. During that period the following departments must be governed by the director or interim director of the following agencies as of June 30, 1993:
        (i) Department of Corrections, created pursuant to Section 1-30-30, by the director of the former Department of Corrections;
      (ii) Department of Juvenile Justice created pursuant to Section 1-30-60, by the interim director of the former Department of Youth Services;
      (iii) Department of Probation, Pardon and Parole created pursuant to Section 1-30-85 by the director of the former Department of Probation, Pardon and Parole;
      (iv) Department of Social Services created pursuant to Section 1-30-100, by the director of the former Department of Social Services;
        (v) Department of Parks, Recreation and Tourism created pursuant to Section 1-30-80, by the director of the former Department of Parks, Recreation and Tourism;
      (vi) Department of Commerce created pursuant to Section 1-30-25, by the Executive Director of the former State Development Board;
      (vii) Department of Alcohol and Other Drug Abuse Services created pursuant to Section 1-30-20, by the director of the former South Carolina Commission on Alcohol and Drug Abuse.
    (3) As of December 1, 1993, the Governor must submit to the Senate the names of appointees to the permanent department directorships for those departments created on July 1, 1993 and February 1, 1994. If no person has been appointed and qualified for a directorship as of February 1, 1994, the Governor may appoint an interim director to serve pursuant to the provisions of (F) (1).
    (4) Notwithstanding provisions of (2) and (3) to the contrary, the initial interim director of the Department of Public Safety shall be appointed by the Budget and Control Board and such initial interim director must not be appointed as the permanent director of the department by the Governor.
  (G) (1) Department governing authorities must, no later than the first day of the 1994 legislative session and every twelve months thereafter for the following three years, submit to the Governor and General Assembly reports giving detailed and comprehensive recommendations for the purposes of merging or eliminating duplicative or unnecessary divisions, programs, or personnel within each department to provide a more efficient administration of government services. Thereafter, the Governor shall periodically consult with the governing authorities of the various departments and upon such consultation the Governor shall submit a report of any recommendations to the General Assembly for review and consideration.
    (2) The Governor shall report to the General Assembly no later than the second Tuesday in January of 1994, his recommendation for restructuring the following offices and divisions presently under his direct supervision, and as to how each might be restructured within other appropriate departments or divisions amended by this act:
    (i) Office of Executive Policy and Programs;
    (ii) Office of Energy Programs;
    (iii) Office of Personnel and Program Services;
    (iv) Office of Research;
    (v) Division of Health;
    (vi) Division of Economic Opportunity;
    (vii) Division of Economic of Development;
    (viii) Division of Ombudsman and Citizens' Services;
    (ix) Division of Education;
    (x) Division of Natural Resources;
    (xi) Division of Human Services.

(H) Department governing authorities must submit to the General Assembly by the first day of the 1994 legislative session and every five years thereafter a mission statement that must be approved by the General Assembly by Joint Resolution.

  Section 1-30-15. Department of Agriculture.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Agriculture:
  Department of Agriculture, formerly provided for at Section 46-39-10, et seq.

  Section 1-30-20. Department of Alcohol and Other Drug Abuse Services.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Alcohol and Other Drug Abuse Services:
  (A) South Carolina Commission on Alcohol and Drug Abuse, formerly provided for at Section 44-49-10, et seq.;
  (B) Drug-free Schools and Communities Program in the Governor's Office, provided for under grant programs.

  Section 1-30-25. Department of Commerce.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Commerce to be initially divided into divisions for Aeronautics, Advisory Coordinating Council for Economic Development, State Development, Public Railways and Savannah Valley Development:
  (A) South Carolina Aeronautics Commission, formerly provided for at Section 55-5-10, et seq.;
  (B) Coordinating Council for Economic Development, formerly provided for at Section 41-45-30, et seq.;
  (C) Savannah Valley Authority, formerly provided for at Section 13-9-10, et seq.;
  (D) State Development Board, except for the Film Office, formerly provided for at Section 13-3-10, et seq.;
  (E) South Carolina Public Railways Commission, formerly provided for at Section 58-19-10, et seq.

  Section 1-30-30. Department of Corrections.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Corrections:
  Department of Corrections, formerly provided for at Section 24-1-10, et seq.

  Section 1-30-35. Department of Disabilities and Special Needs.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Disabilities and Special Needs to be initially divided into divisions for Mental Retardation, Head and Spinal Cord Injury, and Autism; provided, however, that the board of the former Department of Mental Retardation as constituted on June 30, 1993, and thereafter, under the provisions of Section 44-19-10, et seq., shall be the governing authority for the department.
  (A) Department of Mental Health Autism programs, formerly provided for at Section 44-9-10, et seq.;
  (B) Head and Spinal Cord Injury Information System, formerly provided for at Section 44-38-10, et seq.;
  (C) Department of Mental Retardation, formerly provided for at Section 44-19-10, et seq.

  Section 1-30-40. Department of Education.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Education:
  State Department of Education, provided for at Section 59-5-10, et seq.

  Section 1-30-45. Department of Health and Environmental Control.
  Effective on July 1, 1994, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Health and Environmental Control and to include a coastal division:
  (A) Department of Health and Environmental Control, formerly provided for at Section 44-1-10, et seq.;
  (B) South Carolina Coastal Council, formerly provided for at Section 48-39-10, et seq.;
  (C) State Land Resources Conservation Commission regulatory division, formerly provided for at Section 48-9-10, et seq.;
  (D) Water Resources Commission regulatory division, formerly provided for at Section 49-3-10, et seq.

  Section 1-30-50. Department of Health and Human Services.
  Effective on July 1, 1995, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Health and Human Services:
  Department of Health and Human Services Finance Commission, formerly provided for at Section 44-6-10, et seq.

  Section 1-30-55. Department of Insurance.
  Effective on July 1, 1995, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Insurance:
  Department of Insurance, formerly provided for at Section 38-3-10, et seq.

  Section 1-30-60. Department of Juvenile Justice.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Juvenile Justice:
  Department of Youth Services, formerly provided for at Section 20-7-3100, et seq.

  Section 1-30-65. Department of Labor, Licensing, and Regulation.
  Effective on February 1, 1994, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Labor, Licensing, and Regulation to be initially divided into divisions for Labor, State Fire Marshal, and Professional and Occupational Licensing:
  (A) Fire Marshal Division of Budget & Control Board, formerly provided for at Section 23-9-10, et seq.;
  (B) Department of Labor, formerly provided for at Title 12, Chapter 37; Title 46, Chapter 43; and Title 41, Chapters 1-25;
  (C) Professional and Occupational Licensing Boards including:
  Accountancy Board, formerly provided for at Section 40-1-10 et seq.;
  Architectural Board of Examiners, formerly provided for at Section 40-3-10 et seq.;
  Athletic Commission, formerly provided for at Section 52-7-10 et seq.;
  Auctioneers Commission, formerly provided for at Section 40-6-10 et seq.;
  Barber Examiners Board, formerly provided for at Section 40-7-10 et seq.;
  Barrier Free Design Board, formerly provided for at Section 10-5-210 et seq.;
  Building Code Council, formerly provided for at Section 6-9-60 et seq.;
  Burglar Alarm Business, formerly provided for at Section 40-79-10 et seq.;
  Chiropractic Examiners Board, formerly provided for at Section 40-9-10 et seq.;
  Contractors Licensing Board, formerly provided for at Section 40-11-10, et seq.;
  Cosmetology Board, formerly provided for at Section 40-13-10 et seq.;
  Dentistry Board, formerly provided for at Section 40-15-10 et seq.;
  Embalmers and Funeral Directors/Funeral Service Board, formerly provided for at Section 40-19-10, et seq.;
  Engineers & Land Surveyors Board, formerly provided for at Section 40-21-10 et seq.;
  Environmental Systems Operators Board, formerly provided for at Section 40-23-10 et seq.;
  Fire Sprinkler Contractors Board, formerly provided for at Section 23-45-10 et seq.;
  Foresters Registration Board, formerly provided for at Section 48-27-10 et seq.;
  Geologists Registration Board, formerly provided for at Section 40-77-10, et seq.;
  Harbor Pilots/ Pilotage Commission, formerly provided for at Section 54-15-40, et seq.;
  Liquefied Petroleum Gas Board, formerly provided for at Section 39-43-20, et seq.;
  Manufactured Housing Board, formerly provided for at Section 31-17-10, et seq.;
  Modular Appeals Board, formerly provided for at Section 23-43-50, et seq.;
  Nursing Board, formerly provided for at Section 40-33-10 et seq.;
  Nursing Home Administrators Board, formerly provided for at Section 40-35-10 et seq.;
  Occupational Therapy Board, formerly provided for at Section 40-36-10 et seq.;
  Optometry Board, formerly provided for at Section 40-37-10 et seq.;
  Opticianry Board, formerly provided for at Section 40-38-10 et seq.;
  Pharmacy Board, formerly provided for at Section 40-43-10 et seq.;
  Physical Therapy Examiners, formerly provided for at Section 40-45-10 et seq.;
  Physicians, Surgeons and Osteopaths/ Board of Medical Examiners, formerly provided for at Section 40-47-10 et seq.;
  Podiatry Examiners, formerly provided for at Section 40-51-10 et seq.;
  Professional Counselors, Marital and Family Therapists;
  Psychology Board of Examiners, formerly provided for at Section 40-75-10 et seq.;
  Pyrotechnic Safety Board, formerly provided for at Section 40-56-10 et seq.;
  Real Estate Brokers & Appraisers, formerly provided for at Section 40-57-10 et seq.;
  Residential Home Builders Board, formerly provided for at Section 40-59-10 et seq.;
  Sanitarian Board of Examiners, formerly provided for at Section 40-61-10 et seq.;
  Social Worker Board of Examiners, formerly provided for at Section 40-63-10 et seq.;
  Speech Pathology & Audiology Board of Examiners, formerly provided for at Section 40-67-10 et seq.;
  Veterinary Medical Examiners, formerly provided for at Section 40-69-10 et seq.

  Section 1-30-70. Department of Mental Health.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Mental Health to include a Children's Services Division and shall include:
  Department of Mental Health, provided for at Section 44-9-10, et seq.

  Section 1-30-75. Department of Natural Resources.
  Effective on July 1, 1994, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Natural Resources to be initially divided into divisions for Geological Mapping and State Geologist, Land Resources Conservation, Water Resources, Marine Resources, Wildlife and Freshwater Fish, and State Natural Resources Enforcement; Provided the South Carolina Wildlife Commission Board, as constituted on June 30, 1993, and thereafter, under the provisions of Section 50-3-10 et. seq. shall be the governing authority for the department:
  (A) Geological Mapping Division of the Budget and Control Board, to include the State Geologist, formerly provided for at Section 1-11-10, et seq.;
  (B) State Land Resources Conservation Commission, less the regulatory division, formerly provided for at Section 48-9-10, et seq.;
  (C) South Carolina Migratory Waterfowl Commission, formerly provided for at Section 50-11-20, et seq.;
  (D) Water Resources Commission, less the regulatory division, formerly provided for at Section 49-3-10, et seq.;
  (E) South Carolina Wildlife Commission, formerly provided for at Section 50-3-10, et seq.

  Section 1-30-80. Department of Parks, Recreation and Tourism.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Parks, Recreation and Tourism to include a Parks, Recreation and Tourism Division and Film Division.
  (A) Film Office of the State Development Board, formerly provided for at Section 13-3-10, et seq.;
  (B) Department of Parks, Recreation and Tourism; formerly provided for at Section 51-1-10, 51-3-10, 51-7-10, 51-9-10 and 51-11-10, et seq.

  Section 1-30-85. Department of Probation, Pardon and Parole.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Probation, Pardon and Parole:
  Department of Probation, Pardon and Parole, formerly provided for at Section 24-21-10, et seq.

  Section 1-30-90. Department of Public Safety
Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Public Safety to be initially divided into divisions for Highway Patrol, State Police, Training and Continuing Education, Motor Vehicle Records and Vehicle Inspection, and Public Safety.
  (A) Law Enforcement Hall of Fame, formerly provided for at Section 23-25-10, et seq.;
  (B) State Highway Patrol, formerly provided for at Section 23-5-10, et seq.;
  (C) Public Service Commission Safety Enforcement, formerly provided at Section 58-3-310;
  (D) Law Enforcement Training Council, formerly provided for at Section 23-23-30, et seq.;
  (E) Public Safety Division, formerly of the Governor's Office;
  (F) The vehicle inspection, administrative services, drivers records, and financial responsibility sections and other offices of the Division of Motor Vehicles formerly provided for at Section 56-1-10 et. seq.

  Section 1-30-95. Department of Revenue and Taxation.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Revenue and Taxation to be initially divided into divisions for Alcohol Beverage Control, Motor Vehicles, and Tax; provided, however, that from July 1, 1993, until February 1, 1995, the governing authority of the department shall be the commissioners of the Tax Commission, as constituted June 30, 1993, and thereafter, pursuant to the provisions of Section 12-3-10, et seq.:
  (A) Licensing Division of Alcoholic Beverage Control Commission, formerly provided for at Section 61-1-10, et seq.;
  (B) Motor Vehicle Division of Department of Highways and Public Transportation, formerly provided for at Section 56-1-10, et seq.;
  (C) Tax Commission, formerly provided for at Section 12-3-10, et seq.

  Section 1-30-100. Department of Social Services.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Social Services:
  Department of Social Services, formerly provided for at Section 43-1-10, et seq.

  Section 1-30-105. Department of Transportation.
  Effective on July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the Department of Transportation to be initially divided into divisions for Mass Transit, Construction and Maintenance, Engineering and Planning, Finance and Administration; provided, however, that the State Highway Commission as constituted on June 30, 1993, under the provisions of Title 56, shall be the governing authority for the department until February 15, 1994, or as soon as its successors are elected or appointed and qualified, whichever is later:
  Department of Highways and Public Transportation, except Motor Vehicle Division and State Highway Patrol, formerly provided for at Section 56-1-10, et seq.

  B. The Governor
  Section 1-30-110. (A) Effective July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the office of the Governor:
      (1) Continuum of Care for Emotionally Disturbed Children provided for at Section 20-7-5610, et seq.;
      (2) Guardian Ad Litem Program, formerly provided for at Section 20-7-121, et seq.;
      (3) State Office of Victim's Assistance, formerly provided for at Section 16-3-1110, et seq.;
      (4) Department of Veterans Affairs, formerly provided for at Section 25-11-10, et seq.;
      (5) Commission on Women, formerly provided for at Section 1-15-10, et seq.;
      (6) Commission on Aging, formerly provided for at Section 43-21-10, et seq.;
      (7) Foster Care Review Board, formerly provided for at Section 20-7-2376, et seq.;

  C. The State Law Enforcement Division

    Section 1-30-120. Effective July 1, 1993, the following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the State Law Enforcement Division:
  (A) Alcoholic Beverage Control Commission enforcement division, formerly provided for at Section 61-1-60, et seq.;
  (B) State Law Enforcement Division, formerly provided for at Section 23-3-10, et seq."

Reference changed

SECTION 2. Section 1-1-110 of the 1976 Code is amended to read:

  "Section 1-1-110. The executive department of this State is hereby declared to consist of the following officers, that is to say: The Governor and Lieutenant Governor, the Secretary of State, the State Treasurer, the Attorney General and the solicitors, the Adjutant General, the Comptroller General, the State Superintendent of Education, the Commissioner of Agriculture and the Director of the Department of Insurance."

Filling of vacancies revised

SECTION 3. Section 1-3-210 of the 1976 Code is amended to read:

  "Section 1-3-210. During the recess of the Senate, vacancy which occurs in an office filled by an appointment of the Governor with the advice and consent of the Senate may be filled by an interim appointment of the Governor. The Governor must report the interim appointment to the Senate and must forward a formal appointment at its next ensuing regular session.
  If the Senate does not advise and consent thereto prior to sine die adjournment of the next ensuing regular session, the office shall be vacant and the interim appointment shall not serve in hold over status notwithstanding any other provision of law to the contrary. A subsequent interim appointment of a different person to a vacancy created by a failure of the Senate to grant confirmation to the original interim appointment shall expire on the second Tuesday in January following the date of such subsequent interim appointment and the office shall be vacant."

Appointments by the Governor

SECTION 4. Chapter 3 of Title 1 of the 1976 Code is amended by adding:

  "Section 1-3-215. (A) Appointments by the Governor requiring the advice and consent of the Senate must be transmitted to the Senate and must contain at a minimum the following information:
    (1) the title of the office to which the individual is being appointed;
    (2) the designation of any special seat, discipline, interest group or other designated entity that the individual is representing or is chosen from;
    (3) the full legal name of the individual being appointed;
    (4) the current street or mailing address and telephone number;
    (5) the county, counties, district or other geographic area or political subdivision being represented;
    (6) the name of the individual being replaced if the appointment is not an initial appointment; and
    (7) the commencement and ending date of the term of office.
  (B) When an appointment has been confirmed by the Senate, evidence of such confirmation shall be transmitted to the Secretary of State by the Clerk of the Senate and the Secretary of State must thereafter obtain the necessary oath and evidence of bond if required. The taking of the oath of office and filing of any requisite bond shall fully vest the person appointed with the full rights, privileges and powers of the office. The notice of confirmation transmitted by the Senate shall be conclusive as to the validity of an appointment and the issuance of a commission by the Secretary of State after obtaining the requisite documentation is a ministerial act."
Appointment procedure revised

SECTION 5. Section 1-3-220 of the 1976 Code is amended to read:

  "Section 1-3-220. The following appointments shall be made by the Governor and are in addition to those appointments by the Governor authorized in other provisions in the Code:
  (1) An appointment to fill any vacancy in an office of the executive department as defined in Section 1-1-110 occurring during a recess of the General Assembly. The term of such appointment shall be until the vacancy be filled by a general election or by the General Assembly in the manner provided by law.
  (2) An appointment to fill any vacancy in a county office. The person so appointed shall hold office, in all cases in which the office is elective, until the next general election and until his successor shall qualify; and in the case of offices originally filled by appointment and not by election, until the adjournment of the session of the General Assembly next after such vacancy has occurred. The Governor may remove for cause any person so appointed by him under the provisions of this paragraph to fill any such vacancy.
  (3) Proxies to represent the share of the State in the Cheraw and Coalfields Railroad Company and in the Cheraw and Salisbury Railroad Company.
  (4) The chief constable of the State, whensoever in his judgment any public emergency shall require it or when necessary to the due execution of legal process."

Removal procedures revised

SECTION 6. Section 1-3-240 of the 1976 Code is amended to read:

  "Section 1-3-240. (A) Any officer of the county or State, except:
    (1) an officer whose removal is provided for in Section 3 of Article XV of the State Constitution; or
    (2) an officer guilty of the offense named in Section 8 of Article VI of the Constitution; or
    (3) pursuant to subsection (B) of this section, an officer of the State appointed by a Governor, either with or without the advice and consent of the Senate;
who is guilty of malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity shall be subject to removal by the Governor upon any of the foregoing causes being made to appear to the satisfaction of the Governor. But before removing any such officer, the Governor shall inform him in writing of the specific charges brought against him and give him an opportunity on reasonable notice to be heard.
  (B) Any person appointed to a state office by a Governor, either with or without the advice and consent of the Senate, other than those officers enumerated in subsection (C), may be removed from office by the Governor at his discretion by an Executive Order removing the officer.
  (C) Persons appointed to the following offices of the State may be removed by the Governor for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity:
    (1) Workers' Compensation Commission;
    (2) Commission of the Department of Revenue and Taxation;
    (3) Ethics Commission;
    (4) Election Commission;
    (5) Professional and Occupational Licensing Boards;
    (6) Juvenile Parole Board;
    (7) Probation, Parole and Pardon Board;
    (8) Director of the Department of Public Safety;
    (9) Board of the Department of Health and Environmental Control, excepting the Chairman;
    (10) Chief of State Law Enforcement Division.
  Upon the expiration of an officeholder's term, such individual may continue to serve until a successor has been appointed and qualifies."

Removal appeal procedures revised

SECTION 7. Section 1-3-250 of the 1976 Code is amended to read:

  "Section 1-3-250. An officer, other than a state officer appointed by the Governor pursuant to subsection (B) of Section 1-3-240, shall have the right of appeal from any order of removal by the Governor under Section 1-3-240 to the resident or presiding judge of the circuit in which the officer resides. The judge shall hear and determine the appeal both as to law and fact upon the record as made before the Governor and upon such additional evidence as he shall see fit to allow. The notice of appeal shall be served upon the Governor, or his secretary, within five days after the service upon the officer of the order of the Governor removing him and shall state the grounds thereof and name the circuit judge to whom the appeal is taken. Thereupon the Governor shall forthwith transmit to the judge the record in the case, including a copy of the order of removal, grounds of removal, evidence in support thereof and return of service and any other matter which in his judgment may be considered by the court. The circuit judge shall within twenty days after the taking of the appeal, or in such shorter time as may be practical, hear and determine the appeal, after giving to the parties reasonable notice of the time and place of hearing. Appeal from the judgment of the circuit judge to the Supreme Court may be had as in any other appeal at law. The hearing may be had and judgment may be rendered in open court, or at chambers within or without the circuit."

Commission placed under Governor's Office

SECTION 8. Section 1-15-10 of the 1976 Code is amended to read:

  "Section 1-15-10. There is hereby created a Commission on Women (the commission) to be composed of seven members appointed by the Governor with the advice and consent of the Senate from among persons with a competency in the area of public affairs and women's activities. The commission shall be under and a part of the Office of the Governor. Members of the commission shall serve for terms of four years and until their successors are appointed and qualify except of those first appointed after April 9, 1970, one member shall serve for a term of one year, two members shall serve a term of one year, two members shall serve a term of two years, two members shall serve for a term of three years and two members shall serve for a term of four years. Vacancies shall be filled in the manner of the original appointment for the unexpired portion of the term only. No member shall be eligible to serve more than two consecutive terms."

Reference changed

SECTION 9. Section 1-20-50(B)(5) of the 1976 Code, as last amended by Act 611 of 1990, is further amended to read:

  "(5) South Carolina Coordinating Council for Economic Development [Abolished by creation of an Advisory Coordinating Council for Economic Development of the Department of Commerce]"

Reference changed
SECTION 10. Section 1-20-50(C)(1) is amended to read:

  "(1) Insurance Commission [Abolished by creation of a Department of Insurance]"

Regulation process revised

SECTION 11. Section 1-23-110 of the 1976 Code, as last amended by Act 507 of 1992, is amended to read:

  "Section 1-23-110. (A) Before the promulgation, amendment, or repeal of a regulation, an agency shall:
    (1) give notice of a drafting period by publication of a notice in the State Register. The notice must include:
      (a) the address to which interested persons may submit written comments during the initial drafting period before the regulations are submitted as proposed;
      (b) a synopsis of what the agency plans to draft;
      (c) the agency's statutory authority for promulgating the regulation;
    (2) submit to the division, no later than the date the notice required in item (3) is published in the State Register, a preliminary assessment report prepared in accordance with Section 1-23-115 on regulations having a substantial economic impact;
    (3) give notice of a public hearing at which the agency will receive data, views, or arguments, orally and in writing, from interested persons on proposed regulations by publication of a notice in the State Register if requested by twenty-five persons, by a governmental subdivision or agency, or by an association having not less than twenty-five members. The notice must include:
      (a) the address to which written comments must be sent and the time period of not less than thirty days for submitting these comments;
      (b) the date, time, and place of the public hearing which must not be held sooner than thirty days from the date the notice is published in the State Register;
      (c) either the text or a synopsis of the proposed regulation;
      (d) the statutory authority for its promulgation;
      (e) a preliminary fiscal impact statement prepared by the agency reflecting estimates of costs to be incurred by the State and its political subdivisions in complying with the proposed regulation. A preliminary fiscal impact statement is not required for those regulations which are not subject to General Assembly review under Section 1-23-120;
      (f) a summary of the preliminary assessment report submitted by the agency to the division and notice that copies of the preliminary report are available from the agency. The agency may charge a reasonable fee to cover the costs associated with this distribution requirement. A regulation that does not require an assessment report because it does not have a substantial economic impact, must include a statement to that effect. A regulation exempt from filing an assessment report pursuant to Section 1-23-115(E) must include an explanation of the exemption;
      (g) a statement of the need and reasonableness of the regulation.
  (B) Notices required by this section must be mailed by the promulgating agency to all persons who have made timely requests of the agency for advance notice of proposed promulgation of regulations.
  (C) The agency shall consider fully all written and oral submissions respecting the proposed regulation.
  (D) A proceeding to contest a regulation on the ground of noncompliance with the procedural requirements of this section must be commenced within one year from the effective date of the regulation."

Regulation process revised

SECTION 11A. Title 1, Chapter 23 of the 1976 Code, is amended by adding:

  "Section 1-23-111. (A) When a public hearing is held pursuant to this article involving the promulgation of regulations by a department for which the governing authority is a single director, it shall be conducted by an administrative law judge assigned by the chief judge. When a public hearing is held pursuant to this article involving the promulgation of regulations by a department for which the governing authority is a board or commission, it shall be conducted by the board or commission, with the chairman presiding. The administrative law judge or chairman, as the presiding official, shall ensure that all persons involved in the public hearing on the regulation are treated fairly and impartially. The agency shall submit into the record the jurisdictional documents, including the statement of need and reasonableness, and any written exhibits in support of the proposed regulation. The agency may also submit oral evidences. Interested persons may present written or oral evidence. The presiding official shall allow questioning of agency representatives or witnesses, or of interested persons making oral statements, in order to explain the purpose or intended operation of the proposed regulation, or a suggested modification, or for other purposes if material to the evaluation or formulation of the proposed regulation. The presiding official may limit repetitive or immaterial statements or questions. At the request of the presiding official or the agency, a transcript of the hearing must be prepared
  (B) After allowing all written material to be submitted and recorded in the record of the public hearing no later than five working days after the hearing ends, unless the presiding official orders an extension for not more than twenty days, the presiding official must issue a written report which must include findings as to the need and reasonableness of the proposed regulation and may include suggested modifications to the proposed regulations in the case of a finding of lack of need or reasonableness.
  (C) If the presiding official determines that the need for or reasonableness of the proposed regulation has not been established, the agency must elect to:
    (a) follow the suggested modifications of the presiding official and submit the proposed regulation for legislative approval pursuant to Section 1-23-120;
    (b) not modify the proposed regulation but submit the proposed regulation as originally drafted for legislative approval pursuant to Section 1-23-120 with a copy of the presiding official's report attached; or
    (c) withdraw the proposed regulation."

Content of regulation reports

SECTION 12. Section 1-23-115 of the 1976 Code, as last amended by Act 507 of 1992, is amended to read:

  "Section 1-23-115. (A) Upon written request by two members of the General Assembly, a regulation that has a substantial economic impact must have an assessment report prepared pursuant to this section and in accordance with the procedures contained in this article.
  (B) A state agency must submit to the State Budget and Control Board, Division of Research and Statistical Services, a preliminary assessment report on regulations which have a substantial economic impact. Upon receiving this report the division may require additional information from the promulgating agency, other state agencies, or other sources. A state agency shall cooperate and provide information to the division on requests made pursuant to this section. The division shall prepare and publish a final assessment report within sixty days after the public hearing held pursuant to Section 1-23-110. The division shall forward the final assessment report and a summary of the final report to the promulgating agency.
  (C) At a minimum, the preliminary assessment report required by this section must disclose the effects of the proposed regulation on the public health and environmental welfare of the community and State and the effects of the economic activities arising out of the proposed regulation. Both the preliminary and final reports required by this section may include:
    (1) a description of the regulation, the purpose of the regulation, the legal authority for the regulation, and the plan for implementing the regulation;
    (2) a determination of the need for and reasonableness of the regulation and the expected benefit of the regulation;
    (3) a determination of the costs and benefits associated with the regulation and an explanation of why the regulation is considered to be the most cost effective, efficient, and feasible means for allocating public and private resources and for achieving the stated purpose;
    (4) the effect of the regulation on competition;
    (5) the effect of the regulation on the cost of living and doing business in the geographical area in which the regulation would be implemented;
    (6) the effect of the regulation on employment in the geographical area in which the regulation would be implemented;
    (7) the source of revenue to be used for implementing and enforcing the regulation;
    (8) a conclusion on the short-term and long-term economic impact upon all persons substantially affected by the regulation, including an analysis containing a description of which persons will bear the costs of the regulation and which persons will benefit directly and indirectly from the regulation;
    (9) the uncertainties associated with the estimation of particular benefits and burdens and the difficulties involved in the comparison of qualitatively and quantitatively dissimilar benefits and burdens. A determination of the need for the regulation must consider qualitative and quantitative benefits and burdens;
    (10) the effect of the regulation on the environment and public health;
    (11) the detrimental effect on the environment and public health if the regulation is not implemented. An assessment report must not consider benefits or burdens on out-of-state political bodies or businesses. The assessment of benefits and burdens which cannot be precisely quantified may be expressed in qualitative terms. This subsection must not be interpreted to require numerically precise cost-benefit analysis. At no time is an agency required to include items (4) through (8) in a preliminary assessment report; however, these items may be included in the final assessment report prepared by the division.
  (D) If information required to be included in the assessment report materially changes at any time before the regulation is approved or disapproved by the General Assembly, the agency must submit the corrected information to the division which must forward a revised assessment report to the Legislative Council for submission to the committees to which the regulation was referred during General Assembly review.
  (E) An assessment report is not required on:
  (1) regulations specifically exempt from General Assembly review by Section 1-23-120; however, if any portion of a regulation promulgated to maintain compliance with federal law is more stringent than federal law, then that portion is not exempt from this section;
    (2) emergency regulations filed in accordance with Section 1-23-130; however, before an emergency regulation may be refiled pursuant to Section 1-23-130, an assessment report must be prepared in accordance with this section;
    (3) regulations which control the hunting or taking of wildlife including fish or setting times, methods, or conditions under which wildlife may be taken, hunted, or caught by the public, or opening public lands for hunting and fishing."

Name changed

SECTION 13. Section 1-23-120(G)(3) of the 1976 Code, is amended to read:

  "(3) by the South Carolina Department of Revenue and Taxation to adopt regulations, revenue rulings, revenue procedures, and technical advice memoranda of the Internal Revenue Service so as to maintain conformity with the Internal Revenue Code of 1954;"

Emergency regulation refiling provisions revised

SECTION 14. Section 1-23-130 of the 1976 Code, is amended to read:

  "Section 1-23-130. (A) If an agency finds that an imminent peril to public health, safety, or welfare requires immediate promulgation of an emergency regulation before compliance with the procedures prescribed in this article or if a natural resources related agency finds that abnormal or unusual conditions, immediate need, or the state's best interest requires immediate promulgation of emergency regulations to protect or manage natural resources, the agency may file the regulation with the Legislative Council and a statement of the situation requiring immediate promulgation. The regulation becomes effective as of the time of filing.
  (B) An emergency regulation filed under this section which has a substantial economic impact may not be refiled unless accompanied by the summary of the final assessment report prepared by the division pursuant to Section 1-23-115 and a statement of need and reasonableness is prepared by the agency pursuant to Section 1-23-111.
  (C) If emergency regulations are either filed or expire while the General Assembly is in session, the emergency regulations remain in effect for ninety days only and may not be refiled; but if emergency regulations are both filed and expire during a time when the General Assembly is not in session they may be refiled for an additional ninety days.
  (D) Emergency regulations and the agency statement as to the need for and reasonableness of immediate promulgation must be published in the next issue of the State Register following the date of filing. The summary of the final assessment report required for refiling emergency regulations pursuant to subsection (B) must also be published in the next issue of the State Register.
  (E) An emergency regulation promulgated pursuant to this section may be permanently promulgated by complying with the requirements of this article."

Force and effect of certain regulations

SECTION 15. Section 1-23-160 of the 1976 Code, is amended to read:

  "Section 1-23-160. All regulations of state agencies promulgated according to law and filed with the Secretary of State as of January 1, 1977, shall have the full force and effect of law. All regulations of state agencies promulgated under this article and effective as of June 30, 1994 shall have the full force and effect of law."
Definition to include Administrative Law Judge Division

SECTION 16. Section 1-23-310 of the 1976 Code, is amended to read:

  "Section 1-23-310. As used in this article:
  (1) `Agency' means each state board, commission, department or officer, other than the legislature or the courts, but to include the Administrative Law Judge Division, authorized by law to determine contested cases;
  (2) `Contested case' means a proceeding, including but not restricted to ratemaking, price fixing, and licensing, in which the legal rights, duties or privileges of a party are required by law to be determined by an agency after an opportunity for hearing;
  (3) `License' includes the whole or part of any agency permit, franchise, certificate, approval, registration, charter, or similar form of permission required by law, but it does not include a license required solely for revenue purposes;
  (4) `Party' means each person or agency named or admitted as a party, or properly seeking and entitled as of right to be admitted as a party;
  (5) `Person' means any individual, partnership, corporation, association, governmental subdivision, or public or private organization of any character other than an agency."

Court reference revised

SECTION 17. Section 1-23-320 of the 1976 Code, is amended to read:

  "Section 1-23-320. (a) In a contested case, all parties must be afforded an opportunity for hearing after notice of not less than thirty days, except in proceedings before the Employment Security Commission, which shall be governed by the provisions of Section 41-35-680.
  (b) The notice shall include:
    (1) a statement of the time, place and nature of the hearing;
    (2) a statement of the legal authority and jurisdiction under which the hearing is to be held;
    (3) a reference to the particular sections of the statutes and rules involved;
    (4) a short and plain statement of the matters asserted. If the agency or other party is unable to state the matters in detail at the time the notice is served, the initial notice may be limited to a statement of the issues involved. Thereafter, upon application, a more definite and detailed statement shall be furnished.
  (c) Any party to such proceedings may cause to be taken the depositions of witnesses within or without the State and either by commission of de bene esse. Such depositions shall be taken in accordance with and subject to the same provisions, conditions and restrictions as apply to the taking of like depositions in civil actions at law in the court of common pleas; and the same rules with respect to the giving of notice to the opposite party, the taking and transcribing of testimony, the transmission and certification thereof and matters of practice relating thereto shall apply.
  (d) The agency hearing a contested case may issue in the name of the agency subpoenas for the attendance and testimony of witnesses and the production and examination of books, papers and records on its own behalf or, upon request, on behalf of any other party to the case.
  The administrative law judge division shall, on application of the agency enforce by proper proceedings the attendance and testimony of witnesses and the production and examination of books, papers and records and shall have the power to punish as for contempt of court, by a fine or imprisonment or both, the unexcused failure or refusal to attend and give testimony or produce books, papers and records as may have been required in any subpoena issued by the agency. The agency may issue to the sheriff of the county in which any hearing is held a warrant requiring him to produce at the hearing any witness who shall have ignored or failed to comply with any subpoena issued by the agency and duly served upon such witness. Such a warrant shall authorize the sheriff to arrest and produce at the hearing such witness, and it shall be his duty to do so; but the failure of a witness so to appear in response to any such subpoena may be excused on the same grounds as provided by law in the courts of this State as to the attendance of witnesses and jurors.
  (e) Opportunity shall be afforded all parties to respond and present evidence and argument on all issues involved.
  (f) Unless precluded by law, informal disposition may be made of any contested case by stipulation, agreed settlement, consent order or default.
  (g) The record in a contested case shall include:
    (1) all pleadings, motions, intermediate rulings and depositions;
    (2) evidence received or considered;
    (3) a statement of matters officially noticed;
    (4) questions and offers of proof, objections and rulings thereon;
    (5) proposed findings and exceptions;
    (6) any decision, opinion or report by the officer or administrative law judge presiding at the hearing.
  (h) Oral proceedings or any part thereof shall be transcribed on request of any party.
  (i) Findings of fact shall be based exclusively on the evidence and on matters officially noticed."

Review of contested case final decisions

SECTION 18. Section 1-23-380 of the 1976 Code is amended to read:

  "Section 1-23-380. (A) A party who has exhausted all administrative remedies available within the agency and who is aggrieved by a final decision in a contested case is entitled to judicial review under this article, Article 1, and Article 5. This section does not limit utilization of or the scope of judicial review available under other means of review, redress, relief or trial de novo provided by law. A preliminary, procedural, or intermediate agency action or ruling is immediately reviewable if review of the final agency decision would not provide an adequate remedy.
    (1) Proceedings for review are instituted by filing a petition in the circuit court within thirty days after the final decision of the agency or, if a rehearing is requested, within thirty days after the decision thereon. Copies of the petition shall be served upon the agency and all parties of record.
    (2) The filing of the petition does not itself stay enforcement of the agency decision. The agency may grant, or the reviewing court may order, a stay upon appropriate terms.
    (3) Within thirty days after the service of the petition, or within further time allowed by the court, the agency shall transmit to the reviewing court the original or a certified copy of the entire record of the proceeding under review. By stipulation of all parties to the review proceedings, the record may be shortened. A party unreasonably refusing to stipulate to limit the record may be taxed by the court for the additional costs. The court may require or permit subsequent corrections or additions to the record.
    (4) If, before the date set for hearing, application is made to the court for leave to present additional evidence, and it is shown to the satisfaction of the court that the additional evidence is material and that there were good reasons for failure to present it in the proceeding before the agency, the court may order that the additional evidence be taken before the agency upon conditions determined by the court. The agency may modify its findings and decision by reason of the additional evidence and shall file that evidence and any modifications, new findings, or decisions with the reviewing court.
    (5) The review shall be conducted by the court without a jury and shall be confined to the record. In cases of alleged irregularities in procedure before the agency, not shown in the record, proof thereon may be taken in the court. The court, upon request, shall hear oral argument and receive written briefs.
    (6) The court shall not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact. The court may affirm the decision of the agency or remand the case for further proceedings. The court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions or decisions are:
      (a) in violation of constitutional or statutory provisions;
      (b) in excess of the statutory authority of the agency;
      (c) made upon unlawful procedure;
      (d) affected by other error of law;
      (e) clearly erroneous in view of the reliable, probative and substantial evidence on the whole record; or
      (f) arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
  (B) Review by an Administrative Law Judge of a final decision in a contested case decided by a professional and occupational licensing board within the Department of Labor, Licensing, and Regulation shall be done in the same manner prescribed in (A) for circuit court review of final agency decisions, with the presiding Administrative Law Judge exercising the same authority as the circuit court; provided, however, that a party aggrieved by a final decision of an Administrative Law Judge in such a case is entitled to judicial review of that decision by the circuit court under the provisions of (A) of this section and pursuant to Section 1-23-610(C)."

Administrative Law Judge Division

SECTION 19. Chapter 23, Title 1 of the 1976 Code is amended by adding:

"Article 5

South Carolina Administrative
Law Judge Division

  Section 1-23-500. There is created the South Carolina Administrative Law Judge Division, which is an agency of the executive branch of the government of this State. Effective March 1, 1994, the division shall initially consist of three administrative law judges and shall consist of a total of six administrative law judges, effective on February 1, 1995. The administrative law judges shall be part of the State employees retirement system.

  Section 1-23-510. (A) The judges of the division must be elected by the General Assembly in joint session, for a term of five years and until their successors are elected and qualify; provided, that of those judges initially elected, the chief judge, elected to Seat 1 must be elected for a term of five years, the judge elected to Seat 2 must be elected for a term of three years, the judge elected to Seat 3 must be elected for a term of one year. The remaining judges of the division must be elected for terms of office to begin February 1, 1995, for terms of five years and until their successors are elected and qualify; provided, that those judges elected to seats whose terms of office are to begin on February 1, 1995, to Seat 4 must be initially elected for a term of five years, the judge elected to Seat 5 must be initially elected for a term of three years, and the judge elected to Seat 6 must be initially elected for a term of one year. The terms of office of the judges of the division for Seats 1, 2, and 3 shall begin on March 1, 1994. The terms of office of the judges of the division for Seats 4, 5, and 6 shall begin on February 1, 1995. The terms of office of each of the seats shall terminate on the thirtieth day of June in the final year of the term for the respective seats.
  (B) In electing administrative law judges, race, gender, and other demographic factors including age, residence, type of practice, and law firm size should be considered to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the population of this State.
  (C) Before election as an administrative law judge, a candidate must undergo screening pursuant to the provisions of Section 2-19-10, et seq.
  (D) Each seat on the division must be numbered. Elections are required to be for a specific seat. The office of chief administrative law judge is a separate and distinct office for the purpose of an election.
  (E) In the event that there is a vacancy in the position of the chief administrative law judge or for any reason the chief administrative law judge is unable to act, his powers and functions must be exercised by the administrative law judge occupying Seat 2.

  Section 1-23-520. No person is eligible for the office of law judge of the division who does not at the time of his election meet the qualification for justices and judges as set forth in Article V of the Constitution of this State.

  Section 1-23-525. No member of any General Assembly who is not otherwise prohibited from being elected to an administrative law judge position may be elected to such position while he is a member of the General Assembly and for a period of four years after he ceases to be a member of the General Assembly.

  Section 1-23-530. The judges of the division shall qualify after the date of their election by taking the constitutional oath of office.

  Section 1-23-540. The chief judge (Seat 1) shall receive as annual salary equal to ninety percent of that paid to the circuit court judges of this State. The remaining judges shall receive as annual salary equal to eighty percent of that paid to the circuit court judges of this State. They are not allowed any fees or perquisites of office, nor may they hold any other office of honor, trust, or profit. Administrative law judges in the performance of their duties are also entitled to that per diem, mileage, expenses, and subsistence as is authorized by law for circuit court judges.
  Each administrative law judge shall devote full time to his duties as an administrative law judge, and may not practice law during his term of office, nor may he during this term be a partner or associate with anyone engaged in the practice of law in this State.

  Section 1-23-550. All vacancies in the office of administrative law judge must be filled in the manner of original appointment. When a vacancy is filled, the judge elected shall hold office only for the unexpired term of his predecessor.

  Section 1-23-560. Administrative law judges are bound by the Code of Judicial Conduct, as contained in Rule 501 of the South Carolina Appellate Court Rules. The State Ethics Commission is responsible for enforcement and administration of those rules pursuant to Section 8-13-320.

  Section 1-23-570. The Chief Judge of the Administrative Law Judge Division is responsible for the administration of the division. The chief judge shall assign judges of the division to hear contested cases of the various state departments and commissions for which it is responsible on a general rotation and interchange basis by scheduling and assigning administrative law judges based upon subject matter no less frequently than every six months.

  Section 1-23-580. (A) A clerk of the division, to be appointed by the chief judge, must be appointed and is responsible for the custody and keeping of the records of the division. The clerk of the division shall perform those other duties as the chief judge may prescribe.
  (B) The other support staff of the division is as authorized by the General Assembly in the annual general appropriations act. The division may engage stenographers for the transcribing of the proceedings in which an administrative law judge presides. It may contract for these stenographic functions, or it may use stenographers provided by the agency or commission.

  Section 1-23-590. The General Assembly in the annual general appropriations act shall appropriate those funds necessary for the operation of the Administrative Law Judge Division.

  Section 1-23-600. (A) The hearings and proceedings concerning contested cases must be transcribed and are open to the public unless confidentiality is allowed or required by law. The presiding administrative law judge shall render the decision in a written order. The decisions or orders of these administrative law judges are not required to be published but are available for public inspection unless the confidentiality thereof is allowed or required by law.
  (B) An administrative law judge of the division shall preside over all hearings of contested cases as defined in Section 1-23-310 involving the departments of the executive branch of government in which a single hearing officer is authorized or permitted by law or regulation to hear and decide such cases except those arising under the Occupational Safety and Health Act.
  (C) Departments shall notify the Administrative Law Judge Division of all pending contested cases. Upon notification, the chief judge shall assign an administrative law judge to each contested case.
  (D) An administrative law judge of the division also shall preside over all hearings of appeals from final decisions of contested cases before professional and occupational licensing boards or commissions within the Department of Labor, Licensing, and Regulation pursuant to Section 1-23-380.
  (E) Notwithstanding the other provisions of this section, from July 1, 1993 until February 28, 1994, cases to which an administrative law judge would be assigned shall be heard and decided by a special hearing officer appointed by the governing authority of the appropriate department. A special hearing officer shall have the same duties and authority as an administrative law judge under the provisions of this article.

  Section 1-23-610. (A) For quasi-judicial review of any final decision of an administrative law judge of cases involving departments governed by a board or commission authorized to exercise the sovereignty of the State, a petition by an aggrieved party must be filed with the appropriate board or commission and served on the opposing party not more than thirty days after the party receives the final decision and order of the administrative law judge. Appeal in these matters is by right. A party aggrieved by a final decision of a board in such a case is entitled to judicial review of that decision by the Circuit Court under the provisions of (A) of this section and pursuant to Section 1-23-610(C).
  (B) For judicial review of any final decision of an administrative law judge of cases involving departments governed by a single director, a petition by an aggrieved party must be filed with the Circuit Court and served on the opposing party not more than thirty days after the party receives the final decision and order of the administrative law judge. Appeal in these matters is by right.
  (C) For judicial review of any final decision of an administrative law judge of cases involving professional and occupational licensing boards within the Department of Labor, Licensing, and Regulation, a petition by an aggrieved party must be filed with the Circuit Court and served on the opposing party not more than thirty days after the party receives the final decision and order of the administrative law judge. Appeal in these matters is by right.
  (D) The review of the administrative law judge's order must be confined to the record. The reviewing tribunal may affirm the decision or remand the case for further proceedings; or it may reverse or modify the decision if the substantive rights of the petitioner has been prejudiced because of the finding, conclusion, or decision is:
    (a) in violation of constitutional or statutory provisions;
    (b) in excess of the statutory authority of the agency;
    (c) made upon unlawful procedure;
    (d) affected by other error of law;
    (e) clearly erroneous in view of the reliable, probative and substantial evidence on the whole record; or
    (f) arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
  Where appropriations in the annual general appropriations act, or where fees, fines, forfeitures or revenues imposed or collected by agencies or commissions were required to be used for the hearing of contested cases, such appropriations or monies must continue to be used for these purposes after the effective date of this article.

  Section 1-23-630. Each of the law judges of the division has the same power at chambers or in open hearing as do circuit court judges, and to issue those remedial writs as are necessary to give effect to its jurisdiction.

  Section 1-23-640. The division shall maintain its principal offices in the City of Columbia. However, judges of the division shall hear contested cases at the offices or location of the involved department or commission as prescribed by the agency or commission, or at suitable locations outside the City of Columbia as determined by the chief judge.

  Section 1-23-650. Rules governing the administration of the Administration Law Judge Division shall be promulgated by the division. Rules governing procedures before the division, not otherwise expressed in Chapter 23 of Title 1 of the 1976 Code, shall be promulgated by the division and subject to review by the General Assembly as are rules of procedure promulgated by the Supreme Court under Article V of the Constitution.

  Section 1-23-660. Any contested case docketed for hearing before a board or commission abolished by this act shall continue to be under the jurisdiction of such board or commission until the case reaches final disposition at a hearing, with any ruling or adjudication of the board or commission binding. The rules of procedure and review for such boards or commissions in effect on the date of filing of the pending action shall remain in effect until the final disposition of the pending action, other provisions of this chapter notwithstanding. Where a contested case pending before a board or commission abolished by this act is continued under the jurisdiction of such board or commission as provided in this section and where that board or commission is abolished as provided by this act, that board or commission notwithstanding such provision abolishing it shall nevertheless continue in existence for the sole purpose of conducting and bringing to final disposition all such cases. Where any member of that board or commission has assumed another office after the abolition of that board or commission, he shall be considered an ex officio member of his former board or commission for the purposes of this paragraph. Any member of a board or commission abolished who continues to serve in the manner and for the purposes provided by this paragraph is entitled to receive only that mileage, per diem, and subsistence paid to members of state boards, commissions, and committees."

Agency names revised

SECTION 20. Section 1-25-60(A) of the 1976 Code is amended to read:

  "(A) For the purpose of coordinating state agency cooperation with the project, a State Interagency Planning and Evaluation Advisory Committee shall be formed consisting of the following members:
    (1) The chief executive officer of the following state human services agencies and commissions:
      (a) Department of Social Services
      (b) Department of Health and Environmental Control
      (c) Department of Mental Health
      (d) Department of Alcohol and Other Drug Abuse Services
      (e) Department of Vocational Rehabilitation
      (f) Commission for the Blind
      (g) Department of Disabilities and Special Needs
      (h) Division on Aging
    (2) A representative of the State Reorganization Commission, who shall serve as Chairman.
    (3) A representative of two statewide private service agencies to be appointed by the committee chairman.
    (4) A representative of the Governor's office designated annually by the Governor.
    (5) Four persons representing human service clients, consumers or any other class, group or public or private entity that would substantially contribute to the purposes of the committee, to be appointed by these committee chairmen:
      (a) Senate Finance Committee;
      (b) Senate General Committee;
      (c) House Ways and Means Committee;
      (d) House Medical, Military, Public and Municipal Affairs Committee."

Name revised

SECTION 21. Section 2-7-71 of the 1976 Code is amended to read:

  "Section 2-7-71. When any bill relating to state taxes is reported out of a standing committee of the Senate or House of Representatives for consideration, there must be attached and printed as a part of the committee report a statement of the estimated fiscal impact of the bill on the finances of the State signed by an authorized agent of the Department of Revenue and Taxation or his designee. As used in this section `statement of estimated fiscal impact' means the consensus opinion of the persons executing the required statement as to the increase or decrease in the net tax revenue to the State if the bill concerned is enacted by the General Assembly."

Name revised

SECTION 22. Section 2-7-73(A) of the 1976 Code is amended to read:

  "(A) Any bill or resolution which would mandate a health coverage or offering of a health coverage by an insurance carrier, health care service contractor, or health maintenance organization as a component of individual or group policies, must have attached to it a statement of the financial impact of the coverage, according to the guidelines enumerated in subsection (B). This financial impact analysis must be conducted by the Division of Research and Statistical Services and signed by an authorized agent of the Department of Insurance, or his designee. The statement required by this section must be delivered to the Senate or House committee to which any bill or resolution is referred, within thirty days of the written request of the chairman of such committee."

Authorization of state highway bonds

SECTION 23. Section 2-7-105 of the 1976 Code is amended to read:

  "Section 2-7-105. State capital improvement bonds may be authorized by the General Assembly in odd-numbered years. State highway bonds may be authorized by the General Assembly in even-numbered years."

Names changed

SECTION 24. Section 2-13-190 of the 1976 Code is amended to read:

  "Section 2-13-190. Within five days after receiving such page proofs corrected from the Code Commissioner, the Office of Legislative Printing and Information Technology Resources (LPITR) shall print the same and shall deliver as many copies to the Code Commissioner as the commissioner may order. The Code Commissioner on receipt of such copies shall send a copy to each of the following officers: The Governor, Supreme Court Justices, Clerk of the Supreme Court, Court of Appeals Judges, Clerk of the Court of Appeals, circuit judges, circuit solicitors, county judges, county solicitors, clerk of the court of each county, judge of probate of each county, Attorney General, Secretary of State, Comptroller General, Adjutant General, State Treasurer, Chief Bank Examiner, Department of the Revenue and Taxation, Director of the Department of Transportation, State Health Officer, Director of the Department of Natural Resources, Chairman of the Public Service Commission, Commissioner of Agriculture, Director of the Department of Insurance, State Budget and Control Board, State Superintendent of Education, State Librarian, Clerk of the House of Representatives, Clerk of the Senate, Director of the South Carolina Archives Department, and the members of the General Assembly. Any magistrate may obtain a copy of advance sheets of statutes by sending his name, address, and term to the Code Commissioner."

Names changed

SECTION 25. Section 2-13-240 of the 1976 Code is amended to read:

  "Section 2-13-240. (a) Sets of the Code of Laws of South Carolina, 1976, shall be distributed by the Legislative Council as follows: Governor, three; Lieutenant Governor, two; Secretary of State, three; Treasurer, one; Attorney General, fifty; Adjutant General, one; Comptroller General, two; Superintendent of Education, two; Commissioner of Agriculture, two; each member of the General Assembly, one; office of the Speaker of the House of Representatives, one; Clerk of the Senate, one; Clerk of the House of Representatives, one; each committee room of the General Assembly, one; each member of the Legislative Council, one; Code Commissioner, one; Legislative Council, ten; Supreme Court, fourteen; Court Administration Office, five; each circuit court judge, one; each circuit court solicitor, one; each family court judge, one; each county court judge, one; College of Charleston, one; The Citadel, two; Clemson University, three; Francis Marion College, one; Lander College, one; Medical University of South Carolina, two; South Carolina State College, two; University of South Carolina, four; each regional campus of the University of South Carolina, one; University of South Carolina Law School, forty-six; Winthrop College, two; each technical college or center, one; each county governing body, one; each county clerk of court and register of mesne conveyances where such offices are separate, one; each county auditor, one; each county coroner, one; each county magistrate, one; each county master in equity, one; each county probate judge, one; each county public library, one; each county sheriff, one; each public defender, one; each county superintendent of education, one; each county treasurer, one; Library of Congress, three; United States Supreme Court, one; each member of Congress from South Carolina, one; each state library which furnishes this State a free set of its Code of Laws, one; Division of Aeronautics of the Department of Commerce, one; Department of Alcohol and other Drug Abuse Services, one; Department of Archives and History, one; Board of Bank Control, one; Commissioner of Banking, one; Budget and Control Board (Auditor, six; General Services Division, six; Personnel Division, one; Research and Statistical Services Division, one; Retirement System, one); Children's Bureau, one; Department of Consumer Affairs, one; Department of Corrections, two; Criminal Justice Academy, one; Department of Commerce, five; Employment Security Commission, two; Ethics Commission, one; Forestry Commission, one; Department of Health and Environmental Control, five; Department of Transportation, five; Department of Public Safety, five; Human Affairs Commission, one; Workers' Compensation Commission, seven; Department of Insurance, two; Department of Juvenile Justice and Aftercare, one; Department of Labor, Licensing and Regulation, two; South Carolina Law Enforcement Division, four; Legislative Audit Council, one; State Library, three; Department of Mental Health, three; Department of Disabilities and Special Needs, five; Ports Authority, one; Department of Probation, Parole and Pardon, two; Public Service Commission, three; Reorganization Commission, one; Department of Social Services, two; Department of Revenue and Taxation, six; Board for Technical and Comprehensive Education, one; Veterans' Affairs Division of the Governor's office, one; Vocational Rehabilitation, one; Department of Natural Resources, four.
  (b) If any technical college or center offers a course in paralegal practice such college or center shall be allowed two additional sets of the Code.
  (c) All remaining copies of the Code may be sold or distributed in the best interest of the State as may be determined by the Legislative Council.
  (d) The provisions of Sections 8-15-30 and 8-15-40 of the 1976 Code shall not apply to members of the General Assembly, members of the Legislative Council and the Code Commissioner."

Name changed

SECTION 26. Section 2-15-61 of the 1976 Code is amended to read:

  "Section 2-15-61. For the purposes of carrying out its audit duties under this chapter, the Legislative Audit Council shall have access to the records and facilities of every state agency during that agency's operating hours with the exception of reports and returns of the South Carolina Department of Revenue and Taxation as provided in Sections 12-7-1680 and 12-35-1530."

Other officials added

SECTION 27. Section 2-17-15 of the 1976 Code is amended to read:

  "Section 2-17-15. (A) The Governor, the Lieutenant Governor, any other statewide constitutional officer, a member of the General Assembly, a director or deputy director of a state department appointed by the Governor and a member of the immediate family of any of these public officials may not serve as a lobbyist during the time the official holds office and for one year after such public service ends.
  (B) The provisions of this section apply to the Governor, the Lieutenant Governor, or any other statewide constitutional officer who is elected after December 31, 1993, or any member of the General Assembly who is elected after December 31, 1991, and any director or deputy director of a state department appointed after June 30, 1993."

Screening procedures revised

SECTION 28. Section 2-19-30 of the 1976 Code is amended to read:
  "Section 2-19-30. Upon completion of the investigation, the chairman of the joint committee shall schedule a public hearing concerning the qualifications of the candidates. Such hearings shall be conducted no later than two weeks prior to the date set in the election resolution for such election. Any person who desires to testify at the hearing, including candidates, shall furnish a written statement of his proposed testimony to the chairman of the joint committee. Such statements shall be furnished no later than forty-eight hours prior to the date and time set for the hearing. The joint committee shall determine the persons who shall testify at the hearing. All testimony, including documents furnished to the joint committee, shall be submitted under oath and persons knowingly furnishing false information either orally or in writing shall be subject to the penalties provided by law for perjury and false swearing. During the course of the investigation, the joint committee may schedule an executive session at which each candidate, and other persons whom the committee wishes to interview, may be interviewed by the joint committee on matters pertinent to the candidate's qualification for the office to be filled. A reasonable time thereafter the committee shall render its tentative findings as to whether the candidate is qualified for the office to be filled and its reasons therefor as to each candidate.
  As soon as possible after the completion of the hearing, a verbatim copy of the testimony, documents submitted at the hearing, and findings of fact shall be transcribed and published in the Journals of both houses or otherwise made available in a reasonable number of copies to the members of both houses prior to the date of the scheduled election, and a copy thereof shall be furnished to each candidate.
  A candidate may withdraw at any stage of the proceedings and in such event no further inquiry, report on, or consideration of his candidacy shall be made."

Prohibition against pledging expanded

SECTION 29. Section 6, Part IV of Act 610 of 1990 is designated as Section 2-19-70 of the 1976 Code and is amended to read:

  "Section 2-19-70. No candidate for judicial office may seek directly or indirectly the pledge of a member of the General Assembly's vote until the qualifications of all candidates for that office have been determined by the judicial screening committee, nor may a member offer the pledge until the qualifications of all candidates for that office have been determined by the judicial screening committee. For purposes of this section, indirectly seeking a pledge means the candidate or someone acting on behalf of and at the request of the candidate requesting a person, before screening, to contact a member of the General Assembly on behalf of the candidate. The prohibitions of this section do not extend to an announcement of candidacy by the candidate and statements by the candidate detailing the candidate's qualifications.
  Violations of this section may be considered by the screening committee when it considers the candidate's qualifications."

Name changed

SECTION 30. Section 2-22-20 of the 1976 Code is amended to read:

  "Section 2-22-20. The committee has the responsibility for coordination of all public aquaculture and mariculture development in this State. In an effort to eliminate duplication and to ensure use of appropriated monies in the most efficient manner, the committee shall establish an interagency advisory staff whose director must be appointed by the committee. Agencies and institutions represented on the staff shall include: the Department of Agriculture, the Department of Health and Environmental Control, Clemson University, the University of South Carolina, South Carolina Department of Natural Resources, S.C. Sea Grant Consortium, and the Coastal division of the Department of Health and Environmental Control.
  State agencies and institutions are directed to, within their fiscal capabilities, make appropriate resources and personnel available to the committee for input and assistance upon request by the committee."

Name changed

SECTION 31. Section 2-23-10 of the 1976 Code is amended to read:

  "Section 2-23-10. There is created a permanent joint legislative committee to conduct a continuing study of the insurance industry and related laws. The committee is composed of sixteen members. Five members must be appointed from the House of Representatives by its Speaker, five members must be appointed from the Senate by its President, and five members must be appointed by the Governor. The Director of the Department of Insurance shall serve as an ex officio member. None of the Governor's appointees may be members of the General Assembly. At its first meeting the committee shall organize by selecting from its membership a chairman, vice-chairman, secretary, and other officers the committee may determine. The committee shall meet on the call of the chairman or a majority of the members. Terms of committee members who are members of the General Assembly are coterminous with their terms of office. Appointees of the Governor must be appointed for terms of two years and until their successors are appointed. The committee shall report its findings and recommendations annually as soon as practicable after the convening of the General Assembly."

Joint Bond Review Committee to regulate starting date of certain highway projects

SECTION 32. Chapter 47, Title 2 of the 1976 Code, is amended by adding:

  "Section 2-47-60. The Joint Bond Review Committee is hereby authorized and directed to regulate the starting date of the various projects approved for funding through the issuance of state highway bonds so as to ensure that the sources of revenue for debt service on such bonds shall be sufficient during the current fiscal year."

Reference revised

SECTION 33. Section 2-67-10 of the 1976 Code is amended to read:

  "Section 2-67-10. There is created a nine member joint committee of the General Assembly to be known as the Joint Liaison Committee on Small Business. Two members must be appointed from the Senate Labor, Commerce and Industry Committee by the chairman thereof and two members must be appointed from the House Labor, Commerce and Industry Committee by the chairman thereof. One member must be appointed from Senate Finance Committee by the chairman thereof and one member must be appointed from the House Ways and Means Committee by the chairman thereof. One member must be appointed by the Governor which member shall represent the small business community. Additionally, the chairman of the Governor's Small and Minority Business Expansion Council and the Director of the Department of Commerce shall serve ex officio and may designate persons to represent them at meetings of the committee. Terms of the legislative members of the committee are coterminous with their elected terms as members of the General Assembly. The term of the member appointed by the Governor representing the small business community shall be for four years and until his successor is appointed and qualifies. Vacancies must be filled in the manner of original appointment for the remainder of the unexpired term."

Name changed

SECTION 34. Section 2-67-30 of the 1976 Code is amended to read:

  "Section 2-67-30. The members of the committee shall meet as soon as practicable after their appointment and shall elect a chairman, vice-chairman, and other officers as they consider necessary. The committee at its first meeting shall also adopt rules for the purpose of governing its internal proceedings. The committee shall meet at least quarterly and at other times as may be designated by the chairman.
  Members of the committee shall receive the usual mileage, per diem, and subsistence as provided by law for members of state boards, commissions, and committees to be paid from approved accounts from both houses.
  All other expenses of the committee must be defrayed from the budget of the Department of Commerce, which shall also provide staff support and assistance to the committee."

Cultural agencies study

SECTION 35. Chapter 68 of Title 2 of the 1976 Code is amended by adding:

  "Section 2-68-50. The Joint Legislative Committee on Cultural Affairs shall conduct a study of cultural agencies and report to the General Assembly no later than March 1, 1994, on the advisability of those agencies remaining independent or being combined with other related agencies, departments, or divisions. The agencies the committee shall study include, but are not limited to, the South Carolina Arts Commission, the Department of Archives and History, the Confederate Relic Room, the Old Exchange Commission, the State Library, and the State Museum. In addition, the committee shall include in its study a recommendation of whether or not the Patriot's Point Development Authority should become a division of the Department of Parks, Recreation and Tourism."

Name changed
SECTION 36. Section 3-3-210 of the 1976 Code is amended to read:

  "Section 3-3-210. Subject to the rights of the South Carolina Department of Natural Resources or its successors to lease and subject to the rights of the people of the State to gather oysters and other shellfish on any of the lands hereinafter described, there has been granted to the United States all of the marshlands, sand banks, shores, edges and lands uncovered by water at low tide which are included within the outside boundaries of the premises hereinafter described or which are contiguous and adjacent to such boundaries, to wit:
  (1) All that plantation or tract of land containing a body of marshland, in all seven thousand five hundred and sixty-eight (7,568) acres, situate in and around Bull Bay, in the county of Charleston, embracing those islands known as White Banks, being the premises granted to Richard T. Morrison, September 1, 1860, by grants recorded in book Q No. 6, pages 218 and 219, in the office of the Secretary of State, plats of which tracts are also recorded in volume 57, page 429 and page 430, in the office of the Secretary of State;
  (2) All those fifteen islands, together containing sixteen thousand nine hundred and ninety-two (16,992) acres, situate near Bull Bay in Charleston County, which islands as a group bound east on the Atlantic Ocean, to the west partly on Bull Bay, to the northward on creeks and marshes, names unknown, and to the southward on Raccoon Keys, being the islands granted to John Bowman, August 1, 1791, by grant recorded in grant book No. 5, page 205, in the office of the Secretary of State aforesaid, and subsequently conveyed to H. P. Jackson by deed recorded in book Y-20, page 216, in the R.M.C. office for Charleston County aforesaid, a plat of which islands is recorded in plat book 1, page 205, in the office of the Secretary of State aforesaid and also in plat book B, page 136, in the R.M.C. office aforesaid;
  (3) All that tract of land, marsh and sandbank, known as the Casinas, containing three hundred and sixty (360) acres, more or less, near Cape Romain in Charleston County, being the tract granted to John Lee, William Lee and Charles E. Lee, August 3, 1840, by grant recorded in grant book O No. 6, page 485, in the office of the Secretary of State aforesaid, and subsequently conveyed to Henry P. Jackson, by deed recorded in book Y-20, page 214, in the R.M.C. office aforesaid, a plat of which tract is recorded in volume 42, page 68, in the office of the Secretary of State aforesaid and in book B, page 133, in the R.M.C. office aforesaid;
  (4) All that tract of land known as Cape Romain and Bird Bank containing nine hundred and seventy (970) acres, situated in Charleston County, being the premises granted to John Lee, William Lee and Charles E. Lee, by grant recorded in grant book O No. 6, page 486, in the office of the Secretary of State aforesaid and subsequently conveyed to H. P. Jackson by deed recorded in book Y-20, page 215, in the R.M.C. office aforesaid, a plat of which is recorded in plat book B, page 131, in the R.M.C. office aforesaid;
  (5) All that tract of land containing five thousand five hundred and sixty (5,560) acres on an island known as Big and Little Raccoon Keys, situate in Charleston County, which island bounds eastward on Cape Romain Inlet, southward on the Atlantic Ocean and westward on Bull Bay, being the island granted to John Vinyard, October 7, 1816, by grant recorded in volume 61, page 86, in the office of the Secretary of State aforesaid, and subsequently conveyed to H. P. Jackson by deed recorded in book Y-20, page 213, in the R.M.C. office aforesaid; and
  (6) All that tract of land and marshland containing one thousand and forty (1,040) acres, more or less, situate in Christ Church Parish in Charleston County, bounded on the north and northeast by Palmetto Creek, to the north and northwest by lands late of the estate of Whitesides, C. B. Northrop, Hodge and Kelly, south and southwest by lands late of Moses Whitesides, Esq., south and southeast by a creek known as No Man's Friend Creek, being the tract granted to C. B. Northrop, July 2, 1855, by grant recorded in book Q No. 6, page 67, in the office of the Secretary of State and subsequently conveyed to H. P. Jackson by deed recorded in book Y-20, page 217, in the R.M.C. office aforesaid, a plat of which tract is recorded in State record volume 43, page 270, and also in book B, page 132, in the R.M.C. office aforesaid.
  Jurisdiction; migratory bird refuge.--Subject to the rights of the South Carolina Department of Natural Resources as provided above the United States shall have exclusive jurisdiction on the lands so granted for the purpose of carrying out the provisions of the act of Congress approved February 18, 1929, known as the `Migratory Bird Conservation Act' and all acts hereafter amendatory thereof, and for the purpose of the preservation and conservation of all migratory birds which are or hereafter may be under the jurisdiction of the United States.
  Service of process.--Nothing contained in said grant shall be construed to exclude or prevent any process, civil or criminal, issuing from the courts of this State from being served or executed within the limits of said grant.
  Reverter when no longer used for game refuge.--The lands so granted shall revert to the State in the event the United States shall cease to use said lands for the purpose of a migratory bird refuge.
  Consent to conveyance of part of such lands.--The consent of the State has also been given to the conveyance by the United States or its duly authorized agency, to I. W. Limbaker of tract `A,' as shown on plat of the Intercoastal Waterway, Winyah Bay-Charleston, Canal Prism and Spoil Disposal Areas, prepared by the United States engineer office, Charleston, South Carolina, February 6, 1939, and on file in the United States engineer office aforesaid in file No. 42-4, said tract `A' having been a portion of the lands granted the United States as aforesaid, in exchange for the conveyance by I. W. Limbaker to the United States or its duly authorized department, or tract `B,' as shown on said plat, the granting clause of said conveyance from I. W. Limbaker reading as follows:
  `That the said deeded land shall revert to the State of South Carolina in the event the United States of America ceases to use the said lands for the purpose of a migratory bird refuge.' And it is hereby specifically declared that said tract `A' shall not revert to the State on account of said conveyance, but having been conveyed to I. W. Limbaker as so authorized, shall be freed of the provision for reversion contained in the cession of said property to the United States."

Reference revised

SECTION 37. Section 3-5-40 of the 1976 Code is amended to read:

  "Section 3-5-40. If the title to any part of the lands, including submerged lands, property or property rights, required by the United States Government for the construction and maintenance of the aforesaid intracoastal waterway from Winyah Bay, South Carolina, to the State boundary line in the Savannah River and any changes, modifications or extensions thereto and any tributaries thereof, and the Ashley River and Shipyard River projects shall be in any private person, firm or corporation, telephone or telegraph company or other public service corporation or shall have been donated or condemned for public or public service purposes by any political subdivision of this State or any public service corporation, the South Carolina Department of Health and Environmental Control may, acting for and in behalf of the State, secure the above described rights of way and spoil disposal areas for such intracoastal waterway and all its tributaries and for the Ashley River and Shipyard River projects upon, across and through such lands, including submerged lands, or any part thereof, including oyster beds, telephone and telegraph lines, railroad lines, property of other public service corporations and other property and property rights, by purchase, donation or otherwise, through agreement with the owner when possible. And when any such easement or property is thus acquired the Governor and the Secretary of State shall execute a deed for it to the United States."

References revised

SECTION 38. Section 3-5-50 of the 1976 Code is amended to read:

  "Section 3-5-50. If for any reason the South Carolina Department of Health and Environmental Control is unable to secure any rights-of-way and spoil disposal area upon, across, or through any such land, including submerged lands, property, or rights, by voluntary agreement with the owner, the South Carolina Department of Health and Environmental Control, acting for and in behalf of the State may condemn it."

Reference revised

SECTION 39. Section 3-5-60 of the 1976 Code is amended to read:

  "Section 3-5-60. If the United States Government shall so determine, it may condemn and use all lands, including submerged lands, property and property rights which may be needed for the purposes set forth in Section 3-5-40 under the authority of the United States Government and according to the provisions existing in the Federal statutes for condemning lands and property for the use of the United States Government. In case the United States Government shall so condemn such lands, including submerged lands, property and property rights, the South Carolina Department of Health and Environmental Control may pay all expenses of such condemnation proceedings and any award that may be made thereunder out of any monies appropriated for such purposes."

Reference revised

SECTION 40. Section 3-5-80 of the 1976 Code is amended to read:

  "Section 3-5-80. For the purpose of determining the lands, easements and property necessary for the uses herein set out, the South Carolina Department of Health and Environmental Control or the United States Government, or the agents of either, may enter upon any lands along the general line of the rights of way for the purposes of locating definitely the specific lines of such rights of way and the land required for such purposes and there shall be no claim against the State or the United States for such acts as may be done in making such surveys."

References revised

SECTION 41. Section 3-5-100 of the 1976 Code is amended to read:

  "Section 3-5-100. If any of the lands or property, the use of which is acquired for the rights-of-way and spoil disposal areas has been leased by the South Carolina Department of Natural Resources to any person for the cultivation and gathering of oysters, the Department of Natural Resources shall substitute for the leased areas lying within the rights-of-way and spoil disposal areas other equal areas lying without the rights-of-way and spoil disposal areas that also are suitable for the cultivation and gathering of oysters. The Department of Health and Environmental Control may reimburse the person for any direct actual losses resulting from the transfer of leased oyster beds. If for any reason the Department of Natural Resources is unable to reach an agreement with the owner of the leased oyster beds, the Department of Health and Environmental Control, acting for the State, may condemn the rights and property of the lessees in the leased areas."

References revised

SECTION 42. Section 3-5-120 of the 1976 Code is amended to read:

  "Section 3-5-120. If and when any such oyster beds or oysters growing therein shall have been damaged by muddy water or by other effects of such dredging operations any person holding such oyster beds in fee simple or in leasehold or owning the oysters growing therein or any person engaged in the prosecution of the work of constructing the waterway shall be privileged to apply to the South Carolina Department of Health and Environmental Control to survey such oyster beds and oysters and to determine the extent and amount of such damage. Upon any such application, the Department of Health and Environmental Control shall proceed promptly to survey the damage done to such oyster beds and oysters and to determine the identity of the person causing such damage and the identity of the owner in fee or in leasehold of such oyster beds and oysters suffering such damage. The South Carolina Department of Health and Environmental Control may subpoena witnesses to assist in the determination of such facts. The department of Health and Environmental Control must afford the owner of the alleged damaged oyster beds and oysters and the person alleged to have caused the damage an opportunity to be heard."

Damage determination revised

SECTION 43. Section 3-5-130 of the 1976 Code is amended to read:

  "Section 3-5-130. Staff of the Coastal Division of the Department of Health and Environmental Control shall make a determination of the amount of actual damage."

Review of damage determinations

SECTION 44. Section 3-5-140 of the 1976 Code is amended to read:

  "Section 3-5-140. If the person in whose favor or the person against whom such determination is made shall be dissatisfied therewith, such person may apply to an Administrative Law Judge to review the determination. An appeal from the decision of the Administrative Law Judge may be taken to the Coastal Zone Management Appellate Panel. An appeal from the decision of the Panel may be taken to the court of common pleas for the county in which the oyster beds lie. The Court shall review the award in the same manner as reports of a master in equity are reviewed by the court and the determination of the amount of the award by the court of common pleas shall be final.
  Before a review shall be granted to the person against whom the award is made, such person shall pay to the person in whose favor the award is made, one half of the amount of the said award, and shall file with the said clerk of court a bond conditioned for the payment of the remaining half of the award or so much thereof as may be finally awarded, such bond to be approved by the clerk of court of the county in which the oyster beds lie as to form, surety and amount.
  The final award shall be entered on record in the office of the clerk of court of common pleas for the county in which the oyster beds lie and when so entered shall have the force and effect of a judgment. The amount of the award shall be limited to the direct actual damage suffered by the person owning in fee or in leasehold the oyster beds and the oysters growing therein."

Costs to be repaid

SECTION 45. Section 3-5-150 of the 1976 Code is amended to read:

  "Section 3-5-150. Upon the filing with the clerk of court of any such award there shall be added thereto as a part thereof the costs of the survey held to determine the damage resulting in such award. Such costs shall be repaid to the Department of Health and Environmental Control by the person against whom the award is given. If it shall be finally determined that no damage has been done the cost of the survey shall be paid by the person requesting the survey."

Name change

SECTION 46. Section 3-5-160 of the 1976 Code is amended to read:

  "Section 3-5-160. The Department of Health and Environmental Control shall account for all monies recovered under the provisions of Sections 3-5-110 to 3-5-150 to the State Treasurer."

Name change

SECTION 47. Section 3-5-170 of the 1976 Code is amended to read:

  "Section 3-5-170. Should any person cultivating oysters upon an area leased from the State outside of the limits to be acquired for said waterway project from Winyah Bay to the state boundary line in the Savannah River elect, in lieu of claiming damages which might be done to such oysters by dredging operations, to transfer such cultivated oysters to a different leased area and the person whose dredging operations in the construction of said intracoastal waterway either shall have damaged or might damage such oysters agrees to pay the expenses of such removal, the South Carolina Department of Natural Resources may substitute for such leased areas other equal areas suitable for the cultivation and gathering of oysters in a location not subject to damage by dredging operation."

Name change

SECTION 48. Section 3-5-190 of the 1976 Code is amended to read:

  "Section 3-5-190. Any person, his heirs, executors, administrators, successors or assigns, who may be compensated for damage to oysters during the construction or maintenance of said intracoastal waterway and its tributaries and the Ashley River and Shipyard River projects, whether by the Department of Health and Environmental Control, the contractor engaged on the work or the United States, shall be estopped from making further claim for damage to oysters in or upon the same area on account of dredging operations during maintenance or further improvement of the waterway and its tributaries or Ashley River or Shipyard River."

Name change

SECTION 49. Section 3-5-320 of the 1976 Code is amended to read:

  "Section 3-5-320. If the title to any part of the lands required by the United States Government for the construction of the aforesaid inland waterway from the North Carolina-South Carolina State line at Little River to Winyah Bay shall be in any private person, company, firm or corporation, railroad company, canal company, telephone or telegraph company or other public service corporation or shall have been donated or condemned for any such use by any political subdivision of this State, the Department of Health and Environmental Control may, acting for and in behalf of the State, secure a right of way of the width aforesaid for such inland waterway upon, across and through such lands or any part thereof by purchase, donation or otherwise, through agreement with the owner when possible, and when any such property is thus acquired the Governor and the Secretary of State shall execute a deed for it to the United States."

References revised

SECTION 50. Section 3-5-330 of the 1976 Code is amended to read:

  "Section 3-5-330. If for any reason the Department of Health and Environmental Control is unable to secure the right-of-way upon, across, or through the property by voluntary agreement with the owner, the Department of Health and Environmental Control acting for the State, may condemn the right-of-way. The Governor and the Secretary of State shall promptly execute a deed for the condemned property to the United States."

Name change
SECTION 51. Section 3-5-340 of the 1976 Code is amended to read:

  "Section 3-5-340. If the United States Government shall so determine, it may condemn and use all lands and property which may be needed for the purposes set forth in Section 3-5-310 under the authority of the United States Government and according to the provisions existing in the Federal statutes for condemning lands and property for the use of the United States Government. In case the United States Government shall so condemn such lands and property, the Department of Health and Environmental Control may pay all expenses of the condemnation proceedings and any award that may be made thereunder out of any moneys appropriated or which may be appropriated for such purposes."

Name change

SECTION 52. Section 3-5-360 of the 1976 Code is amended to read:

  "Section 3-5-360. For the purpose of determining the lands and property necessary for the uses herein set out the Department of Health and Environmental Control or the United States Government, or the agents of either, may enter upon any lands along the general line of said right of way and make such surveys and do such other acts as in their judgment may be necessary for the purpose of definitely locating the specific lines of said right of way and the lands required for said purposes and there shall be no claim against the State or the United States for such acts as may be done in making such surveys."

Name changed

SECTION 53. Section 4-9-155 of the 1976 Code is amended to read:

  "Section 4-9-155. (A) The annual audit of the offices of the county assessor, auditor, treasurer, and tax collector must be conducted in accordance with the standards set forth by the Comptroller General of the United States as published in a volume entitled Government Auditing Standards and the manual and guide prescribed by the South Carolina Department of Revenue and Taxation. The Department of Revenue and Taxation manual and guide must set forth necessary items, entries, transactions, and other data for the accountant to closely examine in the audit of the offices of the county assessor, county auditor, county treasurer, and county tax collector. A copy of the audit of each of these offices must be provided by the accountant to the Department of Revenue and Taxation and Comptroller General of this State.
  (B) Any county in which the governing body fails to require the annual audit to be conducted as required in this section is subject to the penalty provisions of Section 12-43-260, and the Department of Revenue and Taxation upon determining that this failure occurred shall take the actions provided in Section 12-43-260 to impose the penalties provided therein.
  (C) The provisions of this section are applicable for tax years beginning after December 31, 1992."

Name changed

SECTION 54. Section 4-10-25 of the 1976 Code is amended to read:

  "Section 4-10-25. The gross proceeds of sales of tangible personal property delivered after the imposition date of the tax levied under Section 4-10-20 in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the local sales and use tax provided in Section 4-10-20 if a verified copy of the contract is filed with the South Carolina Department of Revenue and Taxation within six months after the imposition of the local sales and use tax."

Name changed

SECTION 55. Section 4-10-60(D) of the 1976 Code is amended to read:

  "(D) The provisions of subsection (A) do not apply if the total number of county areas adopting the sales and use tax authorized by this chapter, which are projected by the Department of Revenue and Taxation to collect five million dollars or more, generated fifty percent or less during the most currently available fiscal year of the total statewide collections from the levy of a one percent sales and use tax, then those county areas generating five million dollars or more must be assessed five percent of the amount generated in the county area, and that amount must be used as a supplement to those county areas generating less than the minimum distribution. The supplement to those county areas generating less than the minimum distribution must be distributed so that each county area receives an amount equal to what its percentage of population bears to the total population in all of the county areas generating less than the minimum distribution which have implemented the sales and use tax authorized by this chapter. Once the amount of the supplement has been determined for each of the county areas to be supplemented, then the supplement must be distributed to the eligible units within the county area based on population as provided for in this chapter. However, the supplement to the county area combined with collections within the county area may not exceed the minimum distribution."

Name changed

SECTION 56. Section 4-10-80 of the 1976 Code is amended to read:

  "Section 4-10-80. Annually by August fifteenth the State Treasurer shall report to the county chief administrative officers, county treasurers, and municipal clerks in those county areas which levy the sales and use tax authorized by this chapter the total amount of revenue collected as reported by the Department of Revenue and Taxation in the county area for the preceding fiscal year."

Name changed

SECTION 57. Section 4-10-90 of the 1976 Code is amended to read:

  "Section 4-10-90. (A) The Department of Revenue and Taxation shall administer and collect the local sales and use tax in the manner that sales and use taxes are administered and collected pursuant to Chapter 35 of Title 12. The commission may prescribe forms and promulgate regulations in conformity with this chapter, including tables prescribing the amount to be added to the sales price. The county shall notify the Department of Revenue and Taxation and the State Treasurer through delivery of a certified copy of a resolution adopted by the county by December thirty-first following the referendum for the tax to be imposed May first. Failure to deliver the resolution by December thirty-first causes a delay of the imposition until the first day of May of the next calendar year. Notwithstanding the provisions of this subsection, the local sales and use tax must not be imposed before July first following the first referendum held pursuant to Section 4-10-30.
  (B) All revenues collected by the Department of Revenue and Taxation on behalf of a county area pursuant to this chapter must be remitted to the State Treasurer to be credited to a Local Sales and Use Tax Fund which is separate and distinct from the state general fund. After deducting the amount of refunds made and the costs to the Department of Revenue and Taxation of administering the tax, not to exceed one-half of one percent of the fund or seven hundred fifty thousand dollars, whichever is greater, the State Treasurer shall deposit the revenue into the Local Sales and Use Tax Fund which consists of two separate funds: the Property Tax Credit Fund and the County/Municipal Revenue Fund. The revenue collected pursuant to this chapter must be allocated to each fund as follows:
    (1) During the first year after the effective date of this act, sixty-three percent to the Property Tax Credit Fund and thirty-seven percent to the County/Municipal Revenue Fund.
    (2) During the second year after the effective date of this act, sixty-five percent to the Property Tax Credit Fund and thirty-five percent to the County/Municipal Revenue Fund.
    (3) During the third year after the effective date of this act, sixty-seven percent to the Property Tax Credit Fund and thirty-three percent to the County/Municipal Revenue Fund.
    (4) During the fourth year after the effective date of this act, sixty-nine percent to the Property Tax Credit Fund and thirty-one percent to the County/Municipal Revenue Fund.
    (5) During the fifth year after the effective date of this act, and each year thereafter, seventy-one percent to the Property Tax Credit Fund and twenty-nine percent to the County/Municipal Revenue Fund. The allocation of revenue to each fund provided for in this section must remain uniform as to the percentage allocated to each fund regardless of the year in which a county adopts the local sales and use tax. The State Treasurer shall distribute monthly the revenues according to the provisions of this chapter.
  (C) The Department of Revenue and Taxation shall furnish data to the State Treasurer and to the governing bodies of the counties and municipalities receiving revenues for the purpose of calculating distributions and estimating revenues. The information which may be supplied to counties and municipalities includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information by taxpayer received by appropriate county or municipal officials is considered confidential and is governed by the provisions of Section 12-54-240. A person violating this section is subject to the penalties provided in Section 12-54-240. The State Treasurer may correct misallocations from the Property Tax Credit Fund and County/Municipal Revenue Fund by adjusting subsequent allocations, but these adjustments may be made only in allocations made in the same fiscal year as the misallocation."

Name changed

SECTION 58. Section 4-29-67(B)(4)(b), (C)(1), D(2)(a), (F)(2)(b), (N), and (P) of the 1976 Code is amended to read:

  "(B)(4)(b) The members of the same controlled group of corporations as defined in Section 1563 of the Internal Revenue Code of 1986 can qualify for the fee if the combined investment in the county by the members meets the minimum investment requirements. The members whose investments will be used to meet the minimum level of investment must all be parties to any agreements providing the terms for payment of the fee. The county and the members who are part of the inducement agreement may agree that any investments by other members of the controlled group within the time period provided in subsection (C)(1) shall qualify for the payment regardless of whether the member was part of the inducement agreement. Members of the controlled group which are not parties to the inducement agreement must invest at least ten million dollars in the county and must notify the Department of Revenue and Taxation that the investment is subject to the fee before the execution of the lease agreement covering the investment by the member. The investments under subsection (B)(4)(b) must be within the same county. In order to qualify under this provision, investors claiming the fee must be members of the same controlled group at the time of the inducement agreement and all lease agreements which are executed by the parties. Members of the controlled group must provide the information considered necessary by the Department of Revenue and Taxation to ensure that the investors are part of a controlled group.
  (C)(1) From the end of the property tax year in which the investor and the county execute the initial lease or lease purchase agreement, the investor has five years in which to complete its investment for purposes of qualifying for Section 4-29-67. If the investor does not anticipate completing the project within five years, the investor may apply to the county before the end of the five-year period for an extension of time to complete the project. If the county agrees to grant the extension, the county must do so in writing and a copy must be delivered to the Department of Revenue and Taxation within thirty days of the date the extension was granted. The extension may not exceed two years in which to complete the project. There is no extension allowed for the five-year period in which to meet the minimum level of investment. If the minimum level of investment is not met within five years, all property financed under the lease agreement reverts retroactively to the payments required by Section 4-29-60. The difference between the fee actually paid by the investor and the payment which is due under Section 4-29-60 is subject to interest as provided in Section 12-43-305. Unless property qualifies as replacement property under a contract provision enacted pursuant to subsection (F)(2), any property placed in service after the five-year period, or seven years in the case of a project which has received an extension, is not part of the fee agreement under subsection (D)(2) and is subject to the payments required by Section 4-29-60 if the county has title to the property, or to property taxes as provided in Chapter 37 of Title 12 if the investor has title to the property.
  (D)(2)(a) An annual payment in an amount not less than the property taxes that would be due on the project if it were taxable, but using an assessment ratio of not less than six percent, and a fixed millage rate as provided in subsection (G), and a fair market value estimate determined by the South Carolina Department of Revenue and Taxation as follows:
  (F)(2)(b) The new replacement property which qualifies for the fee provided in subsection (D)(2) is recorded using its income tax basis and the fee is calculated using the millage rate and assessment ratio provided on the original fee property. If the investor uses the method of making the payment provided in subsection (D)(2)(b) with either a fixed millage rate, or a changing millage rate as provided in subsection (D)(2)(c) if the fee on the original investment uses that method, then the investor and the county shall negotiate the method of calculating the present value of the fee payments for each year remaining in the fee period. This method must be provided to the Department of Revenue and Taxation at the time information concerning the calculation of the original fee payment is provided to the Department of Revenue and Taxation. If a method of calculating the fee payment for replacement property is not negotiated, then the method of calculating the payment must be based on subsection (D)(2)(a).
  (N) The investor shall file the returns, contracts, and other information which may be required by the Department of Revenue and Taxation in order to report investments in connection with the fee.
  (P) The Department of Revenue and Taxation may require returns and other information it considers appropriate to administer the provisions of this section, and may issue the rulings and regulations it determines necessary or appropriate to carry out the purpose of this section."
Name change

SECTION 59. Section 5-3-90 of the 1976 Code is amended to read:

  "Section 5-3-90. Any city or town increasing its territory shall file a notice with the Secretary of State, Department of Transportation, and the Department of Public Safety describing its new boundaries. Such notice shall include a written description of the boundary, along with a map or plat which clearly defines the new territory added."

Names changed

SECTION 60. Section 5-3-110 of the 1976 Code is amended to read:

  "Section 5-3-110. Whenever the whole or any part of any street, roadway or highway has been accepted for and is under permanent public maintenance by a city, a county or the Department of Transportation, that portion of any right-of-way area not exceeding the width thereof lying beyond but abutting on the corporate limits of the city may be annexed to and incorporated within the city by adoption of an ordinance so declaring, without necessity for election of any sort, upon prior consent in writing of any public agency other than the city engaged in maintenance of the right-of-way area to be annexed. Consent on behalf of the Department of Transportation may be given by the director. Consent on behalf of any county may be given by its county commissioners, county board of directors, or other local county agency or governing body having jurisdiction over county roads."

Name change

SECTION 61. Section 5-3-300(I)(3) of the 1976 Code is amended to read:

  "(3) tracts of other than timberland not meeting the acreage requirement qualify if the freeholder reported at least one thousand dollars of gross farm income on his federal income tax return Schedule E or F for at least three of the five taxable years preceding the year of the annexation. The municipal clerk may require the freeholder (a) to give written authorization consistent with privacy laws allowing the clerk to verify farm income from the South Carolina Department of Revenue and Taxation, or the Internal Revenue Service and (b) to provide the Agriculture Stabilization and Conservation Service (ASCS) farm identification number of the tract and allow verification with the ASCS office."

Reference revised

SECTION 62. Section 5-7-110 of the 1976 Code is amended to read:

  "Section 5-7-110. Any municipality may appoint or elect as many police officers, regular or special, as may be necessary for the proper law enforcement in such municipality and fix their salaries and prescribe their duties.
  Police officers shall be vested with all the powers and duties conferred by law upon constables, in addition to the special duties imposed upon them by the municipality.
  Any such police officers shall exercise their powers on all private and public property within the corporate limits of the municipality and on all property owned or provided, that the municipality may contract with any public utility, agency or with any private business to provide police protection beyond the corporate limits. controlled by the municipality wheresoever situated; provided, that the municipality may contract with any public utility, agency or with any private business to provide police protection beyond the corporate limits. Should the municipality provide police protection beyond its corporate limits by contract, the legal description of the area to be served shall be filed with the State Law Enforcement Division, the office of the county sheriff and the Department of Public Safety."

Name change

SECTION 63. Section 5-27-510 of the 1976 Code is amended to read:

  "Section 5-27-510. A municipality may construct or authorize the construction of any building which encroaches upon or projects over a public sidewalk. Any encroachment on a street which is included in the state highway system shall be subject to the approval of the South Carolina Department of Transportation."

Enforcement of certain provisions deleted

SECTION 64. Section 6-9-60 of the 1976 Code is amended to read:

  "Section 6-9-60. Municipalities or counties are authorized to adopt by reference only the latest editions of the following nationally known codes for regulation of construction within their respective jurisdictions: Standard Building Code, Standard Housing Code, Standard Gas Code, Standard Plumbing Code, Standard One and Two Family Dwelling Code, Standard Mechanical Code, Standard Fire Prevention Code, Standard Swimming Pool Code, Standard Excavation and Grading Code, National Electrical Code, and National Fire Protection Association Gas Codes. Should any city, town, or county contend that the codes authorized by this chapter do not meet its needs due to local physical or climatological conditions, the variations and modifications must be submitted for approval to a South Carolina Building Code Council of thirteen members which is established in this section. Members of this council must be appointed by the Governor. The council shall include an architect, representatives from the Municipal Association of South Carolina, the South Carolina Association of Counties, the Building Officials' Association of South Carolina, South Carolina Building Trade Council, a representative from the electric utility industry, a representative of the Carolinas Branch of the Associated General Contractors of America, Inc., representatives from the gas, electric, and plumbing industries, a representative of the Home Builders Association of South Carolina, a handicapped person, and the Chief Engineer of the State Budget and Control Board. At least one member of the council must be a member of each of the congressional districts, to be appointed, if positions become vacant, in the order provided below or as resignations occur. The primary function of the council is to decide to what extent any jurisdiction may vary from the series of codes listed in this section in the establishment of standards. The council shall monitor the adoption of building codes by cities and counties to insure compliance with this chapter. Of the members initially appointed by the Governor, four shall serve for terms of two years, four shall serve for four years, and five shall serve for terms of six years. After the initial appointment, all appointments are for terms of six years. Members of the council shall receive mileage, subsistence, and per diem as provided for other state boards, committees, or commissions for attendance at board meetings called by the chairman. The council shall elect from its appointive members a chairman and secretary. The council shall adopt regulations not inconsistent with this chapter. Meetings may be called by the chairman on his own initiative and must be called by him at the request of three or more members of the council. All members must be notified by the chairman in writing of the time and place of meeting at least seven days in advance of the meeting. Seven members constitute a quorum. All meetings are open to the public. At least two-thirds vote of those members in attendance at the meeting constitutes an official decision of the council."

Name changed

SECTION 65. Section 7-13-710 of the 1976 Code is amended to read:

  "Section 7-13-710. When any person presents himself to vote, he shall produce his valid South Carolina driver's license or other form of identification containing a photograph issued by the South Carolina Department of Revenue and Taxation, if he is not licensed to drive, or the written notification of registration provided for by Sections 7-5-125 and 7-5-180 if the notification has been signed by the elector. If the elector loses or defaces his registration notification, he may obtain a duplicate notification from his county board of registration upon request in person, or by telephone or mail. After presentation of the required identification, his name must be checked by one of the managers on the margin of the page opposite his name upon the registration books, or copy of the books, furnished by the board of registration. The managers shall keep a poll list which must contain one column headed `Names of Voters'. Before any ballot is delivered to a voter, the voter shall sign his name on the poll list, which must be furnished to the appropriate election officials by the State Election Commission. At the top of each page the voter's oath appropriate to the election must be printed. The signing of the poll list or the marking of the poll list is considered to be an affirmation of the oath by the voter. One of the managers shall compare the signature on the poll list with the signature on the voter's driver's license, registration notification, or other identification and may require further identification of the voter and proof of his right to vote under this title as he considers necessary. If the voter is unable to write or if the voter is prevented from signing by physical handicap, he may sign his name to the poll list by mark with the assistance of one of the managers."

Public offices to be declared vacant under certain conditions

SECTION 66. Section 8-1-80 of the 1976 Code is amended to read:

  "Section 8-1-80. Any public officer whose authority is limited to a single election or judicial district who is guilty of any official misconduct, habitual negligence, habitual drunkenness, corruption, fraud, or oppression shall be liable to indictment and, upon conviction thereof, shall be fined not more than one thousand dollars and imprisoned not more than one year. The presiding judge before whom any public officer convicted under this section is tried shall order a certified copy of the indictment to be immediately transmitted to the Governor who must, upon receipt of the indictment, by executive order declare the office to be vacant. The office must be filled as in the case of the death or resignation of the officer."

Suspension provisions revised

SECTION 67. Section 8-1-100 of the 1976 Code is amended to read:

  "Section 8-1-100. Except as provided in Section 8-1-110, any state or county officer who is indicted in any court for any crime may, in the discretion of the Governor, be suspended by the Governor, who in event of suspension shall appoint another in his stead until he shall be acquitted. In case of conviction, the office shall be declared vacant by the Governor and the vacancy filled as provided by law."

Name changed

SECTION 68. Section 8-11-10 of the 1976 Code is amended to read:

  "Section 8-11-10. The departments of the state government except where seven day per week services are maintained, shall remain open from nine A.M. until five P. M. from Monday through Friday, both inclusive, except on holidays fixed by law. On Saturdays such departments may close at one P.M. Skeleton forces may be maintained on Saturday and so staggered that each employee shall work not less than one Saturday out of each month; provided, that the offices of the Department of Revenue and Taxation shall remain open from eight-thirty A.M. until five P.M. from Monday through Friday, both inclusive, except on holidays fixed by law and these offices need not be kept open on Saturdays, except as may be necessary to carry on essential work."

Names changed

SECTION 69. Section 8-11-945 of the 1976 Code is amended to read:
  "Section 8-11-945. For the purposes of this article, local health care providers of the Department of Disabilities and Special Needs, Division of Mental Retardation, Department of Alcohol and Other Drug Abuse Services, and the South Carolina Division on Aging are eligible for the base pay increase and performance pay increase as prescribed."

Name changed

SECTION 70. Section 8-13-740(A)(2)(c) of the 1976 Code is amended to read:

  "(c) in a contested case, as defined in Section 1-23-310, excluding a contested case for a rate or price fixing matter before the South Carolina Public Service Commission or South Carolina Department of Insurance, or in an agency's consideration of the drafting and promulgation of regulations under Chapter 23 of Title 1 in a public hearing."

Name change

SECTION 71. Section 8-13-740(A)(6)(c) of the 1976 Code is amended to read:

  "(c) in a contested case, as defined in Section 1-23-310, excluding a contested case for a rate or price fixing matter before the South Carolina Public Service Commission or South Carolina Department of Insurance, or in an agency's consideration of the drafting and promulgation of regulations under Chapter 23 of Title 1 in a public hearing."

Election and appointment provisions revised

SECTION 72. Section 8-13-910 of the 1976 Code is amended to read:

  "Section 8-13-910. (A) No person who is a candidate for public office which is filled by election by the General Assembly may be voted upon by the General Assembly until at least ten days following the date on which the candidate files a statement of economic interests as defined in this chapter with the Chairman of the Senate Ethics Committee and the Chairman of the House of Representatives Ethics Committee.
  (B) No person who is appointed to an office which is filled with the advice and consent of the Senate or the General Assembly may be confirmed unless the appointment, when received by the Senate and/or the House, is accompanied by a current original copy of a statement of economic interests which has been filed with the appointing authority and is transmitted with the appointment and until at least ten days following the date on which the appointment, with the attached original economic interest statement, has been received by the Senate and/or the House."

Name changed

SECTION 73. Item 9 of Section 8-17-370 of the 1976 Code is amended to read:

  "9. Employees of the Public Service Authority, State Ports Authority, or the Division of Public Railways of the Department of Commerce;"

Name changed

SECTION 74. Section 8-21-310(20)(a) of the 1976 Code is amended to read:

  "(a) for filing and enrolling and satisfying executions or warrants for distraint for the South Carolina Employment Security Commission, the South Carolina Department of Revenue and Taxation, or any other state agency, where costs of the executions or warrants for distraint are chargeable to the persons against whom such executions or warrants for distraint are issued, five dollars;"

Name changed

SECTION 75. Section 8-21-770(b) of the 1976 Code is amended to read:

  "(b) Except as otherwise provided, the following fees and costs shall be collected by the Probate Courts and deposited in the general fund of the counties:
  (1) In the administration of decedent estates, guardianships, and committeeships, costs shall be computed as follows:
    (i) Property valuation less than $5,000.00 $20.00
    (ii) Property valuation of $5,000 but less than $20,000 $40.00
    (iii) Property valuation of $20,000.00 but less than
        $60,000.00 $60.00
    (iv) Property valuation of $60,000 but less than $100,000 $90.00
    (v) Property valuation of $100,000.00 or higher
                $90.00,
plus 1/10 of one percent of the property evaluation above $100,000.00 provided, that the fees as set out above shall include appointment of administrators, including administrators d. b. n., administrators d. b. n. c. t. a., ancillary administrators and temporary administrators; such fee shall include as necessary the cost of receiving and filing petition, issuing citation, filing bond, determining qualification, issuing letters, providing original certificate of administration and copies thereof as required during administration, issuing warrant of appraisement and furnishing copies to the Department of Revenue and Taxation or other authority as required by law, receiving and filing accounts and other papers, and final discharge of administrator; provided, further, that proving a will in common form shall include receiving and filing petition, proof and filing of will, order admitting will to probate, qualification of executors or other fiduciaries, filing bond, issuing letters providing original certificate of appointment, and copies thereof as required during administration, providing certified copy of will to executors or other fiduciaries, issuing warrant of appraisement and furnishing copies to the Department of Revenue and Taxation or other authority as required by law, receiving and filing accounts and other papers, and final discharge of executor;"

Name changed

SECTION 76. Section 8-21-780 of the 1976 Code is amended to read:

  "Section 8-21-780. The fees of the Probate Court for copies of statements furnished to the Department of Revenue and Taxation under the provisions of Section 12-15-550 shall be $1.00 per page and shall be charges against the estate and collected prior to final discharge."

Name changed

SECTION 77. Section 8-21-790 of the 1976 Code is amended to read:

  "Section 8-21-790. The office of the Probate Court shall also be paid fees according to the following schedule for each estate settled:
  On the first $100.00 of tax collected 5%

  Above $100.00 and up to $1,000.00 2%
  Above $1,000.00 and up to $10,000.00 11/2%
  Above $10,000.00 and up to $50,000.00 1%
  Above $50,000.00 and up to $100,000.00 3/4 of 1%
  Above $100,000.00 and up to $300,000.00 1/2 of 1%
  Above $300,000.00 1/4 of 1%
  But when the total fees received by the Office of the Probate Court of any county, under this schedule, shall in any one year exceed $10,000, the South Carolina Department of Revenue and Taxation shall retain three-fourths of the excess above $10,000 and shall turn such excess into the general funds of the state treasury, and if the Probate Judge shall fail or neglect to perform any duty required under Chapter 15 of Title 12, the South Carolina Department of Revenue and Taxation may withhold any or all of the fees provided for in the foregoing schedule and upon such order the Department of Revenue and Taxation shall turn such fees into the general fund of the State Treasurer. All fees allowed under this schedule shall be paid out of the taxes collected by the Department of Revenue and Taxation immediately upon receipt thereof and the receipt of the County Treasurer shall be sufficient voucher to the commission for paying same."

Cafeteria plan

SECTION 78. Section 9-1-60 of the 1976 Code is amended to read:

  "Section 9-1-60. (A) The System may develop and implement a program for the administration of a flexible benefits or `cafeteria' plan as defined by Section 125 of the Internal Revenue Code of 1986 for all employees covered by the health and dental insurance plan administered by the System. The plan may not decrease contributions paid to or benefits paid by the System. The South Carolina Department of Highways and Public Transportation is herewith authorized to continue its independent cafeteria or flexible benefits pilot plan and to modify and implement the plan to accomplish maximum available benefits under Internal Revenue Section 125, until such time as the Comptroller General can convert Department of Transportation employees into the state cafeteria plan.
  (B) Political subdivisions may develop and implement a program for the administration of a flexible benefits or `cafeteria' plan as defined by Section 125 of the Internal Revenue Code of 1986 for their employees. The plan may not decrease contributions paid to or benefits paid by the System."
Names changed

SECTION 79. Section 9-11-180 of the 1976 Code is amended to read:

  "Section 9-11-180. The Department of Public Safety is hereby authorized to pay into the Police Officers' Retirement System fund prior to July 1, 1967, on behalf of active highway patrol member employees, an amount equal to the sum such members would be required to contribute to the fund for creditable prior service pursuant to Section 9-11-170. The amounts paid into the fund shall be used for the payment of retirement benefits under the Police Officers' Retirement System or shall be refunded to the Department of Public Safety. None of the moneys paid into the fund pursuant to this section shall be disbursed in any other manner to patrol member employees upon termination of employment with the department nor shall any such funds be paid to a patrol member employee's surviving beneficiary as a residual credit to any patrol member employee's account which may have existed upon his death. Provided, however, that the interest accruing after July 1, 1967 on the amount paid into the fund may be credited to the patrol member employee's account just as if he had made the contribution for creditable prior service for his account. Any time that the Police Officers' Retirement System closes the account of an active patrol member employee because of death or termination of employment with the department the System shall refund to the department the amount that it has paid into the fund on behalf of patrol member employees for creditable prior service under the Supplemental Allowance Program of the System."

References changed and exemption provision deleted

SECTION 80. Section 10-5-230 of the 1976 Code is amended to read:

  "Section 10-5-230. There is created the South Carolina Board for Barrier-Free Design which must be composed of six members to be appointed by the Governor for terms of four years and until their successors are appointed and qualify. Not less than two appointed members of the board must be physically handicapped who ambulate by use of wheelchairs and one appointed member must be a licensed architect. Vacancies on the board must be filled by appointment in the same manner as provided for the original appointment for the remainder of the unexpired term. The board shall also have the following three ex officio members:
  (1) the Chairman of the Building Code Council;
  (2) the Director of the State Department of Vocational Rehabilitation; and
  (3) the State Engineer employed by the Budget and Control Board.
  The ex officio members may appoint proxies for their respective offices. The ex officio members have all the powers, privileges, and duties of the appointed members."

Organized references deleted

SECTION 81. Section 10-5-240 of the 1976 Code is amended to read:

  "Section 10-5-240. The board shall elect a chairman and vice-chairman to serve for terms of two years each and until their successors are elected and qualify. The board shall adopt rules for the purpose of governing its internal proceedings. The board shall meet at least once annually and at those other times as may be designated by the chairman but in no event more than twice a month. Five members of the board constitute a quorum at all meetings. All members of the board must be paid the usual per diem, mileage, and subsistence as provided by law for members of boards, committees, and commissions for days on which they are on official business of the board, to be paid from the general fund of the State."

Appeal procedures revised

SECTION 82. Section 10-5-270 of the 1976 Code is amended to read:

  "Section 10-5-270. The board may waive or modify any part of the standards and the specifications established pursuant to this article upon request, on a case by case basis, if the board determines:
  (a) the purpose of this article can be fulfilled by an acceptable alternative to the particular standard;
  (b) the incremental construction cost to conform to the standards exceeds seven percent of the total construction or renovation cost;
  (c) occupancy and employment practices would generally exclude the use of a structure by handicapped persons due to hazards and employment requirements;
  (d) usage or size of structures would have minimal impact in facilitating the handicapped; or
  (e) the building involved is identified or classified by national or state jurisdictions as an `historic building' in which case no more than one accessible entrance may be required except that no accessible entrance may be required for so-called museum houses.
  In areas of the State where building codes have been adopted and Building Boards of Adjustments and Appeals established to review construction related cases, these boards may carry out their normal function concerning code requirements for facilities for the handicapped. These Building Boards of Adjustments and Appeals shall consist of at least five members, including one architect, one engineer, one member at large from the building industry, one building contractor, and one member at large from the public. Should the Board for Barrier-Free Design determine that barrier-free design regulations are not being adequately enforced in any jurisdiction the board may withdraw the authority of that jurisdiction to make waivers or modifications and require that requests for these exceptions must thereafter be referred to the Board for Barrier-Free Design.
  In areas of the State where there is no Building Board of Adjustments and Appeals, constituted as required by this section, all requests for waiver or modification must be submitted to the Board for Barrier-Free Design. However, the board may delegate authority to grant waiver of standards and specifications to local authorities, state officials, and municipal or county boards as it considers necessary and proper. Appeals from the decisions of the authorities listed above may be made to the Board for Barrier-Free Design.
  If the Board for Barrier-Free Design denies a request for waiver or modification of the standards and specifications it shall notify the person or governmental entity requesting the waiver. Board action which denies a waiver or modification application may be appealed to an Administrative Law Judge as provided under Article 5 of Chapter 23 of Title 1."

References revised

SECTION 83. Section 10-5-300 of the 1976 Code is amended to read:

  "Section 10-5-300. The enforcement of the provisions of this article, including investigations, must be by the building official of counties and municipalities which have properly adopted building codes in accordance with Chapter 9, Title 6. Counties and municipalities may establish regional agreements with other political subdivisions of the State to provide the services required of the building official and to enforce the provisions of this chapter. If a county or municipality does not have properly adopted building codes, then the Chairman of the Building Code Council shall enforce the provisions of this article in that county or municipality."

Judicial procedures revised

SECTION 84. Section 10-5-320 of the 1976 Code is amended to read:

  "Section 10-5-320. The board or the persons empowered by Section 10-5-300 to enforce the provisions of this article shall notify any owner of property in violation of this article to comply with its provisions and make the necessary changes or corrections within a reasonable time. In the event of noncompliance after a reasonable time, the board or the persons empowered by Section 10-5-300 to enforce the provisions of this article shall bring suit before an Administrative Law Judge as provided under Article 5 of Chapter 23 of Title 1 to enjoin further construction of the building or facility or to enjoin the use of the building or facility until it is in compliance with the standards and specifications established pursuant to this article."

Names changed

SECTION 85. Section 10-7-10 of the 1976 Code is amended to read:

  "Section 10-7-10. All insurance on public buildings and on the contents thereof of the State and of all institutions supported in whole or in part by the State shall be carried by the State Budget and Control Board. Any building or buildings, and the contents thereof, owned by the Department of Transportation may be insured by the State Budget and Control Board, with the consent or approval of such board, or the Department of Transportation shall have the alternative of assuming its own risks."

Name changed

SECTION 86. Section 10-9-320 of the 1976 Code is amended to read:

  "Section 10-9-320. The State Budget and Control Board (board) may lease development rights to geothermal resources underlying surface lands owned by the State. The board must promulgate regulations regarding the method of lease acquisition, lease terms, and conditions due the State under lease operations. The South Carolina Department of Natural Resources is designated as the exclusive agent for the board in selecting lands to be leased, administering the competitive bidding for leases, administering the leases, receiving and compiling comments from other state agencies concerning the desirability of leasing the state lands proposed for leasing and such other activities that pertain to geothermal resource leases as may be included herein as responsibilities of the board."

Name changed

SECTION 87. Section 10-11-50 of the 1976 Code is amended to read:

  "Section 10-11-50. It shall be unlawful for anyone to park any vehicle on any of the property described in Section 10-11-40 and subsection (2) of Section 10-11-80 except in the spaces and manner now marked and designated or that may hereafter be marked and designated by the State Budget and Control Board, in cooperation with the Department of Transportation, or to block or impede traffic through the alleys and driveways."

Name changed

SECTION 88. Section 10-11-80 of the 1976 Code is amended to read:

  "Section 10-11-80. (1) Parking lots which are situated on the property of the State shall be reserved for the employees of the State. The parking lots referred to by this section shall be policed by the Department of Public Safety and no person not authorized by this section shall be allowed to occupy such parking lots. Parking lots referred to in this section are confined to those located in the City of Columbia.
  (2) The parking lot located on the corner of Main and Senate Streets shall be reserved exclusively for members of the General Assembly, the clerks, chaplains, sergeants at arms, reading clerks of both houses and the Code Commissioner during such time as the legislature is in session, after which it shall be reserved as other state parking lots. The use of this lot by unauthorized persons shall constitute a misdemeanor, punishable as provided for in Section 10-11-120."

Name changed

SECTION 89. Section 11-9-820 of the 1976 Code is amended to read:

  "Section 11-9-820. There is created the Board of Economic Advisors as follows:
  (1) One member, appointed by the Governor who possesses specific working knowledge and experience in economics, revenue forecasting, and the state budget process. This person shall serve as chairman.
  (2) Designated representative of the State Department of Revenue and Taxation, who shall serve ex-officio as a nonvoting member.
  (3) One member appointed by the Chairman of the House Ways and Means Committee who possesses specific working knowledge and experience in economics, revenue forecasting, and the state budget process.
  (4) One member appointed by the Chairman of the Senate Finance Committee who possesses specific working knowledge and experience in economics, revenue forecasting, and the state budget process.
  The Chairman of the Board of Economic Advisors shall report directly to the Budget and Control Board to establish policy governing economic trends. The staff of the Board of Economic Advisors are administratively assigned to the Office of the Executive Director of the State Budget and Control Board. The staff shall advise the Board of Economic Advisors but shall report administratively to the Executive Director of the Budget and Control Board. The Chief Economist of the Board of Economic Advisors must be appointed annually by the Executive Director of the Budget and Control Board in consultation with the Chairman of the Board of Economic Advisors."

Name changed

SECTION 90. Section 11-9-825 of the 1976 Code is amended to read:

  "Section 11-9-825. The staff of the Board of Economic Advisors must be supplemented by the following officials who each shall designate one professional from their individual staffs to assist the BEA staff on a regular basis: the Governor, the Chairman of the House Ways and Means Committee, the Chairman of the Senate Finance Committee, the State Department of Revenue and Taxation Chairman, and the Director of the Budget Division of the Budget and Control Board. The BEA staff shall meet monthly with these designees in order to solicit their input."

Name changed

SECTION 91. Section 11-11-10 of the 1976 Code is amended to read:
  "Section 11-11-10. The State Budget and Control Board shall employ competent budget assistants and such special help as it may require to carry out the provisions of this chapter. It shall fix the compensation of such persons as it shall employ in this connection and cause such compensation, together with their necessary traveling expenses, to be paid out of the civil contingent fund. It shall call upon the State Department of Revenue and Taxation for any information desired, and the State Department of Revenue and Taxation shall furnish such information and shall be present at all hearings before the committees having charge of the appropriations in the Senate and House."

Bond definition revised

SECTION 92. Item (a) of Section 11-17-10 of the 1976 Code is amended to read:

  "(a) The term `bonds' shall mean general obligation bonds payable from ad valorem taxes, general obligation bonds additionally secured by any pledge of any assessments, or any pledge of revenues derived by the borrower from any revenue-producing facility, bonds payable solely from the revenues of any revenue-producing facility, and bonds payable solely from any assessments. The term `bonds' shall also include state highway bonds as defined pursuant to the provisions of item (10) of Section 57-11-210, as amended."

Name changed

SECTION 93. Section 11-35-45 (B) of the 1976 Code is amended to read:

  "(B) All agencies and institutions of the State are required to comply with the provisions of this section. Beginning July 1, 1983, the Department of Mental Health, the Department of Disabilities and Special Needs, the Department of Corrections, the Interagency Council on Public Transportation and the Sea Grant Consortium shall process all payments for goods or services through the Office of the Comptroller General. Only the lump sum institutions of higher education are responsible for the payment of all goods or services within thirty work days after the receipt of the goods or services, whichever is received later and shall pay an amount not to exceed fifteen percent per annum on any unpaid balance which exceeds the thirty work-day-period."
Name changed

SECTION 94. Section 11-35-710 of the 1976 Code is amended to read:

  "Section 11-35-710. The board may upon the recommendation of the Division of General Services, exempt governmental bodies from purchasing certain items through the respective chief procurement officer's area of responsibility. The board may exempt specific supplies or services from the purchasing procedures herein required and for just cause may by unanimous written decision limit or withdraw any exemptions provided for in this section. The following exemptions are hereby granted in this chapter:
  (a) the construction, maintenance and repair of bridges, highways and roads; vehicle and road equipment maintenance and repair; and any other emergency type parts or equipment utilized by the Department of Transportation;
  (b) the purchase of raw materials by the South Carolina Department of Corrections, Division of Prison Industries;
  (c) South Carolina State Ports Authority;
  (d) Division of Public Railways of the Department of Commerce;
  (e) South Carolina Public Service Authority;
  (f) expenditure of funds at state institutions of higher learning derived wholly from athletic or other student contests, from the activities of student organizations and from the operation of canteens and bookstores, except as such funds are used for the procurement of construction, architect-engineer, construction-management and land surveying services;
  (g) livestock, feed and veterinary supplies;
  (h) articles for commercial sale by all governmental bodies;
  (i) fresh fruits, vegetables, meats, fish, milk, and eggs;
  (j) South Carolina Arts Commission and South Carolina Museum Commission for the purchase of one-of-a-kind items such as paintings, antiques, sculpture and similar objects. Before any governmental body procures any such objects, the head of the purchasing agency shall prepare a written determination specifying the need for such objects and the benefits to the State. The South Carolina Arts Commission shall review such determination and forward a recommendation to the board for approval;
  (k) published books, periodicals, and technical pamphlets.
  (l) South Carolina Research Authority."
Name changed

SECTION 95. Section 11-35-1520(12) of the 1976 Code is amended to read:

  "(12) Provisions not to Apply. The provisions of this section shall not apply to maintenance services for aircraft of the Division of Aeronautics of the Department of Commerce."

Name changed

SECTION 96. Section 11-35-5230(B)(4) is amended to read:

  "(4) Firms claiming the income tax credit shall maintain evidence of work performed for a state contract by minority subcontractors and shall present such evidence on a form and in a manner prescribed by the Department of Revenue and Taxation at the time of filing its state income tax return and claim such credit at the time of filing. All records shall be available for audit by the Department of Revenue and Taxation in accordance with prevailing tax statutes."

Name changed

SECTION 97. Section 11-35-5250(2) is amended to read:

  "(2) Letter of Contract Award. When a minority business firm certified by the Department of Revenue and Taxation receives a contract with the State, the appropriate chief procurement officer shall furnish a letter, upon request, stating the dollar value and duration of, and other information about the contract, which may be used by the minority firm in negotiating lines of credit with lending institutions."

Name changed

SECTION 98. The first paragraph of Section 11-35-5270 of the 1976 Code is amended to read:

  "A Small and Minority Business Assistance Office (SMBAO) shall be established to assist the board and the Department of Revenue and Taxation in carrying out the intent of this article. The responsibilities of the office shall include but not be limited to the following:"
SECTION 99A. Section 11-37-200 of the 1976 Code is amended to read:

  "Section 11-37-200. (A) There is established by this section the Water Resources Coordinating Council which shall establish the priorities for all sewer, wastewater treatment, and water supply facility projects addressed in this chapter, except as otherwise established by Section 48-6-40. The council shall consist of a representative of the Governor, the Director of the Department of Health and Environmental Control, the Director of the Water Resources Commission, the Director of the Division of Local Government of the Budget and Control Board, the Director of the Department of Commerce, the Chairman of the Jobs Economic Development Authority, and the Chairman of the Joint Bond Review Committee. These representatives may designate a person to serve in their place on the council, and the Governor shall appoint the chairman from among the membership of the council for a one-year term. The council shall establish criteria for the review of applications for projects. Not less often than annually, the council shall determine its priorities for projects. The council after evaluating applications shall notify the authority of the priority projects. The South Carolina Jobs Economic Development Authority shall proide the staff to receive, research, investigate, and process applications for projects made to the coordinating council and assist in the formulating of priorities. Upon notification by the council, the authority shall proceed under the provisions of this chapter. The authority may consider applications for projects based upon the existence of a documented emergency consistent with regulations that may be promulgated by the authority. In determining which local governments are to receive grants, the local governments shall provide not less than a fifty percent match for any project. The authority may provide financing for the local matching funds on terms and conditions determined by the authority.

Name, title changed

SECTION 99B. Section 11-37-200(A) of the 1976 Code is amended to read:

  "Section 11-37-200. (A) There is established by this section the Water Resources Coordinating Council which shall establish the priorities for all sewer, wastewater treatment, and water supply facility projects addressed in this chapter, except as otherwise established by Section 48-6-40. The council shall consist of a representative of the Governor, the Director of the Department of Health and Environmental Control, the Director of the South Carolina Department of Natural Resources, the Director of the Division of Local Government of the Budget and Control Board, the Director of the Department of Commerce, the Chairman of the Jobs Economic Development Authority, and the Chairman of the Joint Bond Review Committee. These representatives may designate a person to serve in their place on the council, and the Governor shall appoint the chairman from among the membership of the council for a one-year term. The council shall establish criteria for the review of applications for projects. Not less often than annually, the council shall determine its priorities for projects. The council after evaluating applications shall notify the authority of the priority projects. The South Carolina Jobs Economic Development Authority shall provide the staff to receive, research, investigate, and process applications for projects made to the coordinating council and assist in the formulating of priorities. Upon notification by the council, the authority shall proceed under the provisions of this chapter. The authority may consider applications for projects based upon the existence of a documented emergency consistent with regulations that may be promulgated by the authority. In determining which local governments are to receive grants, the local governments shall provide not less than a fifty percent match for any project. The authority may provide financing for the local matching funds on terms and conditions determined by the authority."

References to be changed

SECTION 100. The 1976 Code is amended by adding:

  "Section 12-2-5. On February 1, 1995, the duties and powers given to the commissioners of the Department of Revenue and Taxation must be transferred to the director of the Department of Revenue and Taxation. When this transfer takes place, the Code Commissioner is directed to change all code references from commissioners of the Department of Revenue and Taxation to the director of the Department of Revenue and Taxation and to change references of `commission' to `department'."

Name changed

SECTION 101. Section 12-2-10 of the 1976 Code is amended to read:

  "Section 12-2-10. As used in this title:
  (1) `Commission' means the governing body of the South Carolina Department of Revenue and Taxation.
  (2) `Department' means the South Carolina Department of Revenue and Taxation."

Name changed, additional duties

SECTION 102. Section 12-4-10 of the 1976 Code is amended to read:

  "Section 12-4-10. The South Carolina Department of Revenue and Taxation is created to administer and enforce the revenue laws of this State; license, title and register motor vehicles including the drivers licensing of motor vehicle operators; administer the collection of license and registration fees; administer the licensing laws and regulations relating to alcoholic liquors, beer, and wine and assess penalties for violations thereof; and other laws specifically assigned to it."

Departmental divisions

SECTION 103. Chapter 2, Title 12 of the 1976 Code is amended by adding:

  "Section 12-4-15. (A) The Department of Revenue and Taxation must be divided into such divisions as the commissioner of the department or director may prescribe but shall consist of at least the following principal divisions: tax, motor vehicle titling, registration and licensing and commercial motor vehicle services.
  (B) Each division shall be supervised by a deputy director or designee of the Department of Revenue and Taxation."

Governance of department

SECTION 104. Section 12-4-30 of the 1976 Code is amended to read:

  "Section 12-4-30. (A) Until February 1, 1995, the department consists of three commissioners, their officers, agents, and employees. The commissioners are appointed by the Governor with the advice and consent of the Senate. Commissioners shall possess sound moral character, superior knowledge in taxation, and proven administrative ability. The Governor shall designate one of the commissioners as chairman, giving consideration to prior service as a commissioner or employee of the commission.
  (B) If a vacancy on the commission occurs when the General Assembly is not in session, it must be filled by the Governor's appointment for the unexpired term, subject to confirmation by the Senate at the next session of the General Assembly. Commissioners may be removed by the Governor for cause as provided in Section 1-3-240.
  (C) After February 1, 1995, the department will be governed in matters of policy and administration by a director appointed by the Governor with the advice and consent of the Senate. The director may be removed from office pursuant to the provisions of Section 1-3-240.
  (D) After February 1, 1995, all contested cases, as defined by Section 1-23-310 and as previously considered by the three commissioners, shall be heard by an administrative law judge under the provisions of Chapter 23 of Title 1."

References construed

SECTION 105. Section 12-4-335(F)(3) of the 1976 Code is amended to read:

  "(3) Prior to February 1, 1995, references to the Director of Practice means the members of the South Carolina Tax Commission. After February 1, 1995, reference to Director of Practice means the Director of the Department of Revenue and Taxation."

Name changed

SECTION 106. Section 12-4-350 of the 1976 Code is amended to read:

  "Section 12-4-350. The department may contract for computer and other electronic data processing services as it considers necessary. A person, firm, or governmental entity and their employees, under contract with the South Carolina Department of Revenue and Taxation, having access to information contained in or produced from a tax return, document, or magnetically or electronically stored data may not publish or disclose any part or parts of the data or information resulting from the data except to the department, or as authorized by the department, or as otherwise provided by law or by an order of a court of competent jurisdiction. This provision does not exempt the department from the provisions of the South Carolina Consolidated Procurement Code."
Name changed

SECTION 107. Section 12-4-370 of the 1976 Code is amended to read:

  "Section 12-4-370. Funds received from the collection of warrants for distraint may not be expended to supplement appropriations to the Department of Revenue and Taxation. Any unexpended balance in the `Warrant Revolving Fund' less an amount necessary for adequate cash flow must be deposited to the credit of the general fund of the State."

Division established

SECTION 108. The 1976 Code is amended by adding:

"Article 4

Powers and Duties With Respect to
Division of Commercial Motor Vehicle Services

  Section 12-4-400. There is created a Division of Commercial Motor Vehicle Services within the Department of Revenue and Taxation. The division shall have a Bureau of Permitting and Licensing and a Bureau of Commercial Motor Vehicle Driver's Licensing. Additionally, the Public Service Commission shall maintain an office within the division for the purposes of registering commercial motor vehicles within the jurisdiction of the commission. The division shall provide reasonable office space and equipment as is necessary for the proper administration of these services. However, the Public Service Commission shall provide the necessary support staff and operating expenses for the proper administration of this program. The Public Service Commission shall annually transfer to the department such funds as may be necessary and appropriate to cover the actual operating expenses of the office. The division and the Public Service Commission must annually study the feasibility providing these services at other regional locations of the division within the State. Each bureau shall be managed by a bureau director.

  Section 12-4-410. The division shall provide registration and related services to interstate and intra-state motor carriers and other customers in the most efficient, courteous, and timely manner possible. Additionally, the division shall collect fees on behalf of the State for credentials, licenses, and permits issued by the division for motor vehicle carriers, and administer and regulate all interstate motor carrier registration and reciprocity plans, including the development, implementation, and administration of the fuel tax program with International Fuel Tax Agreement (IFTA) member states as well as individual carriers from nonmember states so as to collect fuel tax from carriers consistent with fuel consumption in South Carolina.
  The division shall provide information and assistance to the public, motor carrier organizations, department personnel, and other customers regarding any of the policies and/or procedures administered by the division."

Name changed

SECTION 109. Section 12-7-455(h) of the 1976 Code is amended to read:

  "(h) If a taxpayer complies with the provisions of Internal Revenue Code Section 367 for federal income tax purposes, then it is not necessary for the taxpayer to seek the approval of the South Carolina Department of Revenue and Taxation, but it is considered to have received the approval of the department so long as approval is received from the Internal Revenue Service. A taxpayer utilizing the provisions of Internal Revenue Code Section 367 shall attach to its next annual income tax return a copy of the approval received from the Internal Revenue Service."

Name changed

SECTION 110. Section 12-7-460B. of the 1976 Code is amended to read:

  "B. One-half of the difference between the tax paid on the taxpayer's return attributable to this long-term capital gain and the tax attributable to this gain which would have been paid under the provisions of this section is refundable to the taxpayer when refunds are paid for the 1990 taxable year. The South Carolina Department of Revenue and Taxation may allow a portion or all of a refund due to be used as a credit against the taxpayer's liability for that year."

Name changed

SECTION 111. Section 12-7-1220(A) of the 1976 Code is amended to read:

  "(A) Annually by December thirty-first, using the most current data available from the South Carolina Employment Security Commission and the United States Department of Commerce, the Department of Revenue and Taxation shall rank and designate the state's counties as provided in this section. The sixteen counties in this State having a combination of the highest unemployment rate and lowest per capita income for the most recent thirty-six month period with equal weight being given to each category are designated less developed counties. The fifteen counties in the State with a combination of the next highest unemployment rate and next lowest per capita income for the most recent thirty-six month period with equal weight being given to each category are designated moderately developed counties. The fifteen counties in the State with a combination of the lowest unemployment rate and the highest per capita income for the most recent thirty-six month period with equal weight being given to each category are designated developed counties. Corporations which create new full-time jobs qualify for the appropriate tax credit as provided in subsections (B), (C), and (D). The designation by the Department of Revenue and Taxation is effective for corporate tax years which begin after the date of designation. For corporations which plan a significant expansion in their labor forces at a South Carolina location, the appropriate commission shall prescribe certification procedures to insure that the corporations can claim credits in future years without regard to whether or not a particular county is removed from the list of less developed or moderately developed counties."

Name changed

SECTION 112. Section 12-7-1225 of the 1976 Code is amended to read:

  "Section 12-7-1225. A taxpayer may claim as a credit twenty-five percent of all expenditures, to a maximum of two thousand five hundred dollars made in each tax year, for the construction and installation or restoration of ponds, lakes, and other water impoundments, and water control structures designed for the purposes of water storage for irrigation, water supply, sediment control, erosion control or aquaculture and wildlife management. This tax credit does not apply to any pond, lake, or other water impoundment or water control structure located in or adjacent to and filled primarily by coastal waters of the State.
  To qualify for this credit the taxpayer must obtain a construction permit issued by the South Carolina Department of Health and Environmental Control, or its agent, the local Soil and Water Conservation District, or proof of exemption from permit requirements issued by either of the above agencies.
  If the amount for such credit exceeds the taxpayer's tax liability for such taxable year, the amount which exceeds such tax liability may be carried over for credit against income taxes in the next five succeeding taxable years until the total amount of the tax credit has been taken."

Name changed

SECTION 113. Section 12-7-1250(E) of the 1976 Code is amended to read:

  "(E) If a road qualifying for the credit allowed by this section is subsequently removed from the state highway or public road system the amount of the credit allowed for the construction of the road must be added to any corporate income tax due from the taxpayer for the first taxable year following the removal of the road from public use. The South Carolina Department of Revenue and Taxation shall by regulation implement the provisions of this subsection."

Name changed

SECTION 114. Section 12-7-1590 of the 1976 Code is amended to read:

  "Section 12-7-1590. All individuals, corporations, and partnerships, in whatever capacity acting, including lessees and mortgagors of real or personal property, fiduciaries, and employers, making payments to another individual, corporation or partnership, of interest or dividends of two hundred dollars or more making payment to another individual, corporation, or partnership, of rent, salaries, wages, commissions, emoluments or other fixed or determinable gains or profits or income at the rate of eight hundred dollars or more in any taxable year, except that such payments of personal service compensation on which taxes are required to be withheld and reports of taxes withheld are made with respect to such individual as provided in Sections 12-9-610 to 12-9-660, shall make a true and accurate return to the South Carolina Department of Revenue and Taxation under such regulations as the Department of Revenue and Taxation may prescribe, setting forth the amount of such gains, profits or income and the name and address of the recipient thereof.
  Any taxpayer failing to file the return required by this section shall be assessed a penalty of not less than five dollars nor more than one thousand dollars, which penalty shall be assessed and collected in the same manner and with like effect as income taxes provided by this chapter."

Name changed

SECTION 115. Section 12-7-2010 of the 1976 Code is amended to read:

  "Section 12-7-2010. Every corporation subject to taxation under Chapter 7, Title 12, as amended, shall make a declaration of estimated tax for the taxable year provided that where the amount of estimated tax is less than one hundred dollars, no such declaration need be made.
  (1) For purposes of Sections 12-7-2010 to 12-7-2040, the term estimated tax means the amount which the corporation estimates as the amount of income tax imposed by Chapter 7, Title 12, as amended, less the amount which the corporation estimates as the sum of credits allowed by law against such tax.
  (2) A corporation with a taxable year of less than twelve months shall make a declaration in accordance with the regulations prescribed by the South Carolina Department of Revenue and Taxation."

Name changed

SECTION 116. Section 12-7-2230 of the 1976 Code is amended to read:

  "Section 12-7-2230. Every corporation shall notify the Department of Revenue and Taxation in writing of every examination of its books and records with respect to its net income as reported on its federal income tax return within thirty days after it has or should have had knowledge of the beginning of such examination by the Internal Revenue Service. When any corporation executes a waiver of the statute of limitations on deficiencies and overassessments of federal income taxes, it shall notify the Department of Revenue and Taxation in writing within thirty days from the date of such waiver. Failure on the part of the corporation to notify the Department of Revenue and Taxation within the prescribed time of either of the above actions shall automatically suspend the limitations set forth in Section 12-7-2220 as amended until ninety days after the Department of Revenue and Taxation receives notice in writing from the corporation of such action."

Name changed

SECTION 117. Section 12-7-2415(D)(1), (2), and (3) of the 1976 Code are amended to read:

  "(D) (1) There is established a special fund to be known as the `Nongame Wildlife and Natural Areas Fund' which shall consist of all monies transferred to it under this section, donations to the Nongame and Endangered Species or Heritage Trust Programs of the South Carolina Department of Natural Resources, and all interest earned thereon.
    (2) All balances in the Nongame Wildlife and Natural Areas Fund must be carried forward each year so that no part thereof reverts to the general fund of the State.
    (3) The Department of Natural Resources may expend monies held in the Nongame Wildlife and Natural Areas Fund in furtherance of the department's Nongame and Endangered Species Programs, Heritage Trust Programs, and for related educational projects and programs."

Name changed

SECTION 118. Section 12-7-2590 of the 1976 Code is amended to read:

  "Section 12-7-2590. The Department of Revenue and Taxation, with the approval of the Budget and Control Board, is authorized to expend from the revenue collected under the provisions of Chapter 7, as amended, such additional money as is necessary to the adequate administration and enforcement of this article."

Name changed

SECTION 119. Section 12-7-2610 of the 1976 Code is amended to read:

  "Section 12-7-2610. For the purpose of facilitating the settlement and distribution of estates held by fiduciaries, the South Carolina Department of Revenue and Taxation, with the approval of the Attorney General, may, on behalf of the State, agree upon the amount of taxes at any time due or to become due from fiduciaries under the provisions of Chapter 7 of Title 12 and payment in accordance with such agreement shall be full satisfaction of the taxes to which the agreement relates."

Name changed

SECTION 120. Section 12-9-130 of the 1976 Code is amended to read:

  "Section 12-9-130. Every employee must, on or before the date of commencement of employment, furnish his employer with a signed withholding exemption, relating to the number of withholding exemptions which he claims. In no event shall the exemptions claimed exceed the exemptions to which he is entitled. Any employer who believes an employee has filed an incorrect exemption certificate must furnish a copy of the certificate to the Department of Revenue and Taxation within thirty days after it is filed. In the event the exemption certificate filed is determined to be incorrect, the Department of Revenue and Taxation must notify the employer and employee stating the rate at which taxes must be withheld. The decision of the Department of Revenue and Taxation may be appealed in writing to the Department of Revenue and Taxation by the employee within thirty days after the decision is rendered."

Name changed

SECTION 121. Section 12-9-310(A)(3)(c) and (B) of the 1976 Code are amended to read:

  "(c) `county' means a county of this State.
  This item also does not apply to amounts paid to:
    a nonresident contractor performing work under a contract with the Department of Transportation; and
    a nonresident subcontractor performing work for a contractor who is operating under a contract with the Department of Transportation.
  For purposes of this item, the term nonresident does not include motion picture companies as defined in Section 12-36-2120 nor does it include entities performing personal services for motion picture companies when the motion picture companies and the personal service companies obtain a certificate of authority from the Secretary of State pursuant to Title 33.
  The Department of Revenue and Taxation may grant partial or total exemption from the provisions of this subsection where:
  (a) a portion of the contract is performed outside of this State;
  (b) a portion of the contract consists of providing tangible personal property or material;
  (c) a portion of the contract is subcontracted to others; or
  (d) the taxpayer is not conducting business of a temporary nature in this State as evidenced by substantial assets or a place of business located in this State.
  The conditions set forth in item (3) of this section may be waived by the Department of Revenue and Taxation, provided the payee shall insure the commission by bond, secured by an insurance company licensed by the South Carolina Department of Insurance, or deposit of securities subject to approval by the State Treasurer, or cash which shall not bear interest, that the payee will comply with all applicable provisions of Chapter 7 of this title and with the withholding requirements insofar as his obligations as a withholding agent are concerned.
  (B) The conditions set forth in items (2) and (3) of subsection (A) of this section may be waived by the department, provided the payee shall insure the department by bond, secured by an insurance company licensed by the South Carolina Department of Insurance, or deposit of securities subject to approval by the State Treasurer, or cash which shall not bear interest, that the payee will comply with all applicable provisions of Chapter 5 of this title and with the withholding requirements insofar as his obligations as a withholding agent are concerned."

Name changed

SECTION 122. Section 12-9-420 of the 1976 Code is amended to read:

  "Section 12-9-420. Every withholding agent who fails or neglects to withhold or pay to the Department of Revenue and Taxation any sums required by this chapter to be withheld and paid is personally and individually liable therefor, and any sum or sums withheld in accordance with the provisions of Sections 12-9-310 to 12-9-370 are to be held in trust for the State. An employee is entitled to a credit for the amount of income tax withheld from his wages even though the employer failed to remit and pay over the amount to the department. The term `withholding agent', as used in this section, includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs."

Name changed

SECTION 123. Section 12-9-630 of the 1976 Code is amended to read:

  "Section 12-9-630. On or before the thirty-first day of January next succeeding the year for which amounts were withheld under the provisions of this chapter, every withholding agent shall file a recapitulation and reconciliation of taxes withheld and paid in such form as the Department of Revenue and Taxation shall prescribe. However, an employer who has notified the department in accordance with Section 12-9-410 that he is no longer required to file reports in accordance with Section 12-9-390 may furnish the department with the reconciliation statement required by this section at the time he notifies the department that he is no longer required to file such reports."

Name changed

SECTION 124. Section 12-9-860 of the 1976 Code is amended to read:

  "Section 12-9-860. Any employer who fails to comply with the provisions of Section 12-9-610, requiring the furnishing of a withholding statement to employees, is subject to a penalty of not less than one hundred dollars nor more than one thousand dollars for each violation. Any employer who fails to comply with the provisions of Section 12-9-620, requiring the filing of withholding statements with the Department of Revenue and Taxation, is subject to a penalty of not less than one hundred dollars nor more than two thousand dollars for each violation. These penalties shall be assessed and collected in the same manner and with like effect as income taxes provided by Chapter 7 of this title."

Name changed

SECTION 125. Section 12-13-70 of the 1976 Code is amended to read:

  "Section 12-13-70. The income tax imposed by this chapter shall be administered by the State Department of Revenue and Taxation. The department shall make such rules and regulations not inconsistent with law as may be required for the proper administration and enforcement of this chapter, and such rules and regulations shall have full force and effect of law."

Name changed

SECTION 126. Section 12-16-1110(B), (C), and (D) of the 1976 Code are amended to read:

  "(B) The personal representative of every estate subject to the tax imposed by this chapter who is required by the laws of the United States to file a federal estate tax return shall file with the Department of Revenue and Taxation, on or before the date the federal estate tax return is required to be filed: (1) a return for the tax due under this chapter; and (2) a copy of the federal estate tax return.
  (C) In addition to the provisions of Section 12-54-70, if the personal representative has obtained an extension of time for filing the federal estate tax return, the filing required by subsection (B) is similarly extended until the end of the time period granted in the extension of time for the federal estate tax return. Upon obtaining an extension of time for filing the federal estate tax return, the personal representative shall provide the department with a copy of the instrument providing for this extension.
  (D) Except as provided in Section 12-16-910, the tax due under this chapter must be paid by the personal representative to the Department of Revenue and Taxation at its office in Columbia not later than the date when the return covering this tax is required to be filed under subsection (B) or (C). If the tax is paid pursuant to subsection (C), interest, at a rate equal to the rate of interest established pursuant to Section 12-54-20, must be added for the period between the date when the tax would have been due had no extension been granted and the date of full payment."

Name changed

SECTION 127. Section 12-19-20 of the 1976 Code is amended to read:

  "Section 12-19-20. (a) Every corporation organized under the laws of this State and every corporation organized to do business under the laws of any other state, territory, or country and qualified to do business in South Carolina and any other corporation required by Section 12-7-230 to file income tax returns, in addition to any other requirements of law, must make a report annually to the Department of Revenue and Taxation on or before the fifteenth day of the third month next after the preceding income year in a form prescribed by the Department of Revenue and Taxation and Secretary of State containing all information and facts either the Department of Revenue and Taxation or the Secretary of State may require for the administration of the provisions of this chapter and the provisions of Title 33.
  (b) The annual report shall contain the following mandatory information:
    (1) the name of the corporation and the state or country under whose law it is incorporated;
    (2) the address of its registered office and the name of its registered agent at that office in this State;
    (3) the address of its principal office;
    (4) the names and business addresses of its directors and principal officers;
    (5) a brief description of the nature of its business;
    (6) the total number of authorized shares, itemized by class and series, if any, within each class; and
    (7) the total number of issued and outstanding shares, itemized by class and series, if any, within each class.
  (c) Information in the annual report must be current as of the date the annual report is executed on behalf of the corporation.
  (d) The information required by subsection (b) in all annual reports is open to unrestricted public inspection and copying by any person, including any governmental unit or officer, and for any purpose. Any creditor, employee, officer, shareholder, or person interested in the affairs of the corporation, or its officers, shareholders, or directors, may inspect the information required by subsection (b) or request a copy of the information. A person may request the information required by subsection (b), including a copy of the information, from either the office of the Secretary of State or Department of Revenue and Taxation, and that office shall furnish promptly the information or copy sought. The request may be made in person, in writing, by phone, through an agent, or by any other reasonable manner.
  Either the Secretary of State or Department of Revenue and Taxation, by regulation, may permit the public disclosure of other information, in addition to that required by subsection (b) which either one requires to be filed as an additional part of the corporation's annual report.
  (e) In order to file the initial articles of incorporation or application for certificate of authority by a foreign corporation, the articles or application for certificate of authority must be accompanied by an initial annual report containing the information required pursuant to subsections (a) through (c) of this section together with a remittance for the minimum license fee required by Sections 12-19-70 and 12-19-120 made payable to the South Carolina Department of Revenue and Taxation. The report and remittance must be submitted to the Department of Revenue and Taxation by the Secretary of State."

Name changed

SECTION 128. Section 12-19-60 of the 1976 Code is amended to read:

  "Section 12-19-60. In case of sickness, absence or other disability, or other good cause, the Department of Revenue and Taxation may, within its discretion, grant an extension of time within which to file the license tax return required by this section; provided, further, that where an extension of time is granted, the Department of Revenue and Taxation may require the taxpayer to file a tentative return showing the name and address of the taxpayer and the amount of tax estimated to be due; such tentative return to be filed on or before the fifteenth day of the third month next after the preceding income year and the estimated tax shown thereon paid in full at the time of filing such tentative return; provided, further, that the completed return must be filed and the balance of tax, if any, must be paid within the extended period."

Name changed

SECTION 129. Section 12-19-100 of the 1976 Code is amended to read:

  "Section 12-19-100. In lieu of the license fee imposed by Section 12-19-70, there is hereby levied, in addition to any and all other license taxes and fees or taxes of whatever kind, a license fee of one mill upon each dollar of the fair market value of property, as determined by the South Carolina Department of Revenue and Taxation for property tax purposes for the preceding accounting period, owned and used within South Carolina in the conduct of business of every railroad company, express company, street railway company, navigation company, waterworks company, power company, electric cooperative, light company, gas company, telegraph company, telephone company, parlor, dining or sleeping car company, tank car company, refrigerating car company and fruit growers' express car company, and all privately operated car lines. The license fee provided for in this section shall be paid at the time of the filing of the reports required by this chapter."

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SECTION 130. Section 12-21-100 of the 1976 Code is amended to read:

  "Section 12-21-100. Beer, wine, soft drinks or any goods, wares and merchandise subject to tax under the provisions of this chapter shall be exempt from such tax when sold to the United States Government or United States Government instrumentality for Army, Navy, Marine or Air Force purposes and delivered to a place lawfully ceded to the United States, or delivered to a ship belonging to the United States Navy for distribution and sale to members of the military establishment only, or when sold and delivered to ships regularly engaged in foreign or coastwise shipping between points in this State and points outside the State. Any goods, the sale of which is exempt by this section, may be stored and delivered without payment of the tax imposed by this chapter if stored and delivered in accordance with regulations to be promulgated by the South Carolina Department of Revenue and Taxation."

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SECTION 131. Section 12-21-320 of the 1976 Code is amended to read:

  "Section 12-21-320. The use of documentary license meter impressions, in lieu of stamps as required by this article, may be permitted in the discretion of the South Carolina Department of Revenue and Taxation."

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SECTION 132. Section 12-21-470 of the 1976 Code is amended to read:

  "Section 12-21-470. Any person who (a) is liable to pay the tax as provided in this article, (b) acts in the matter as agent or broker for such person, (c) makes any such sale or (d) in pursuance of any such sale delivers any certificate or evidence of the sale of any stock, interest or right or bill or memorandum thereof, as required in this article, without having the proper stamps affixed thereto shall be subject to a penalty imposed by the Department of Revenue and Taxation of not less than twenty dollars nor more than one hundred dollars for each offense, which penalty the department may remit in part or in whole."

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SECTION 133. Section 12-21-660 of the 1976 Code is amended to read:

  "Section 12-21-660. Every person engaged in the business of purchasing, selling or distributing cigars, cheroots, stogies, cigarettes, snuff or smoking or chewing tobacco at wholesale or through vending machines within the State and all cigarette, cigar and tobacco product manufacturers' sales representatives who conduct business in this State shall file with the Department of Revenue and Taxation an application for a license permitting him to engage in such business. When such business is conducted at two or more separate places, a separate license for each place of business shall be required. A person whose business is conducted through vending machines needs to obtain only one license but shall maintain an up-to-date list of the location of each vending machine operated under this license and each manufacturer's sales representative needs to obtain only one license. The provisions of this section shall not apply to persons who own and stock vending machines for use on their own premises. Nothing in this section shall be construed as requiring a license for the privilege of buying, selling or distributing leaf tobacco nor shall this section apply to churches, schools or charitable organizations operating booths at state, county, or community fairs or to school or church entertainments."

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SECTION 134. Section 12-21-780 of the 1976 Code is amended to read:

  "Section 12-21-780. Every distributor shall on or before the tenth day of each month file with the South Carolina Department of Revenue and Taxation a return on forms to be prescribed and furnished by the department showing the quantity and wholesale price of all tobacco products transported or caused to be transported into the State by him or manufactured or fabricated in the State for sale in this State. Every distributor authorized by the department to make returns and pay the tax on tobacco products sold, shipped, or delivered by him to any person in the State shall file a return showing the quantity and wholesale price of all products so sold, shipped, or delivered during the preceding calendar month. Such returns shall contain such further information as the South Carolina Department of Revenue and Taxation may require. Every distributor shall pay to the department with the filing of such return the tax on tobacco products for such month imposed under this article. When the distributor or dealer files the return and pays the tax within the time specified in this section, he may deduct therefrom two percent of the tax due."

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SECTION 135. Section 12-21-820 of the 1976 Code is amended to read:

  "Section 12-21-820. Notwithstanding any other provision of this article, the Department of Revenue and Taxation is hereby authorized to sell business license stamps to any merchant, wholesale or retail, or manufacturer for his individual use where the person is located without this State. The person shall, as a prerequisite to the purchase of business license stamps, post a bond with the department which in its opinion is sufficient to protect the State with respect to any charges which may arise against the merchant or manufacturer. The merchant or manufacturer shall, as a prerequisite to the purchase of business license stamps, execute an agreement in such form as the department may prescribe, to the effect that the merchant or manufacturer will at any time within the limitation otherwise provided by law, make available to agents or auditors of the department all pertinent records respecting taxable commodities stamped for sale within this State. The privilege of purchasing business license stamps extended by this section to nonresident taxpayers is granted only where the State of residence of the taxpayer grants substantially the same privileges to residents of this State purchasing stamps from the State or where the State imposes no tax of a similar character to that imposed by this article.
  The bond provided for in this section shall be in cash to be held without interest, securities subject to the approval of the State Treasurer, or a surety bond issued by a surety company duly licensed by the Department of Insurance to do business in this State."

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SECTION 136. Section 12-21-1060 of the 1976 Code is amended to read:

  "Section 12-21-1060. Under the reporting method of tax payment on sales of beer and wine prescribed in Section 12-21-1050, the Department of Revenue and Taxation shall allow a discount of two percent to the wholesaler on the amount of tax reported on each monthly report.
  In no case shall any discount be allowed if the taxes are not paid in full or if either the report or the taxes are received by the department after the date due, or after the expiration of any extension granted by the department."

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SECTION 137. Section 12-21-1110 of the 1976 Code is amended to read:

  "Section 12-21-1110. The cost of stamps, supplies, and other expenses of the administration of this article shall be paid out of the proceeds derived from the collection of this tax upon warrants drawn by the Department of Revenue and Taxation upon the State Treasurer."

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SECTION 138. Section 12-21-1320 of the 1976 Code is amended to read:

  "Section 12-21-1320. The additional taxes imposed by Section 12-21-1310 shall be levied against and collected from the wholesaler, importer, or any other person first offering such wine for sale within this State. The wholesaler, importer, or other person offering said wine for sale in this State shall make a report to the Department of Revenue and Taxation in such form as the department may prescribe and shall pay the tax due thereon not later than the twentieth day of the month following the sale of the wine.
  Any wholesaler, importer, or other person first offering wine for sale in this State who fails to file the report or to pay the tax hereby imposed, on or before the twentieth day of the month following the sale of wine, shall pay a penalty of not less than twenty dollars nor more than one thousand dollars, to be assessed and collected by the department in the same manner and with like effect as other taxes are collected. The provisions of Section 12-21-1050 shall determine the payment of taxes for the month of June."

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SECTION 139. Section 12-21-1540 of the 1976 Code is amended to read:

  "Section 12-21-1540. In all cases, the applicant for a certificate of registration required by this article, as a condition precedent to the issue of such certificate of registration, must certify that the Department of Revenue and Taxation shall have the right within statutory limitations to audit and examine the books and records, papers and memoranda of the applicant with respect to the administration and enforcement of laws administered by the Department of Revenue and Taxation."

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SECTION 140. Section 12-21-1550 of the 1976 Code is amended to read:

  "Section 12-21-1550. Prior to shipment into the geographic boundaries of South Carolina to a licensed wholesaler of any beer or wine by a registered producer, the registered producer shall mail by first class mail to the Department of Revenue and Taxation a correct and complete invoice, showing in detail the items in such shipment by quantity, type, brand and size and the point of origin and the point of destination. Also, prior to or at the time of shipment, a copy of the bill of lading shall be forwarded to the Department of Revenue and Taxation by first class mail. Upon acceptance of delivery of the shipment by the duly licensed wholesaler, the wholesaler shall furnish the Department of Revenue and Taxation with a copy of the invoice covering the shipment, with endorsement thereon showing the date, time and place delivery was accepted."

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SECTION 141. Section 12-21-1570 of the 1976 Code is amended to read:

  "Section 12-21-1570. The Department of Revenue and Taxation shall administer and enforce the provisions of this article."

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SECTION 142. Section 12-21-1580 of the 1976 Code is amended to read:

  "Section 12-21-1580. The Department of Revenue and Taxation shall have the power to make such rules and regulations, not inconsistent with law, deemed necessary for the proper administration and enforcement of this article. Such rules and regulations shall have the full force and effect of law."

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SECTION 143. Section 12-21-1590 of the 1976 Code is amended to read:

  "Section 12-21-1590. All monies received by the Department of Revenue and Taxation under the provisions of this chapter shall be deposited with the State Treasurer to the credit of the general fund of the State."

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SECTION 144. Section 12-21-1610 of the 1976 Code is amended to read:

  "Section 12-21-1610. No person, firm, corporation, club or association or any organization within this State shall bring, ship, transport or receive into this State in any manner whatsoever any beer or wine as defined in Section 12-21-1010 for sale except duly licensed beer and wine wholesale distributors; provided, however, that an individual may be permitted to import beer and wine into this State for personal use and consumption within the State and not for sale, in quantities not to exceed ten cases, upon the receipt of a certificate from the Department of Revenue and Taxation authorizing the shipment and evidencing that such person has paid all taxes upon such beer and wine to the Department of Revenue and Taxation. Any person, firm, corporation, club or association in violation of this section shall be subject to a penalty of not less than twenty-five dollars nor more than one thousand dollars, to be assessed and collected by the Department of Revenue and Taxation in the same manner and with like effect as other taxes are collected."

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SECTION 145. Section 12-21-1840 of the 1976 Code is amended to read:

  "Section 12-21-1840. A person who uses in South Carolina a powder or base other than a syrup in the manufacture of a soft drink for sale shall pay a license tax on each package or container of the powder or base in an amount equal to sixteen cents for each gallon of soft drink that is customarily manufactured from the contents of each package or container of powder or base.
  The provisions of this section do not apply to a powder or base that is used by a bottler in the manufacture of a bottled soft drink and the Department of Revenue and Taxation may by regulation provide for the storage of the powder or base when it is not for use in the manufacture of soft drinks for sale. The provisions of this section do not apply to a powder or base that is used in preparing coffee, tea, cocoa, chocolate, any frozen concentrate, or freeze-dried concentrate to which only water is added to produce a pure vegetable or fruit juice nor shall these provisions apply to syrup donated to the Department of Parks, Recreation and Tourism for free distribution at welcome stations."

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SECTION 146. Section 12-21-2420(14)(g) of the first paragraph of Section 12-21-2420 of the 1976 Code and the first paragraph of Section 12-21-2410 of the 1976 Code are amended respectively to read:

  "(g) other similar items approved by the department."
  "The tax imposed by this section shall be paid by the person or persons paying such admission price and shall be collected and remitted to the South Carolina Department of Revenue and Taxation by the person or persons collecting such admission price. The tax imposed by this section shall not apply to any amount separately stated on the ticket of admission for the repayment of money borrowed for the purpose of constructing an athletic stadium or field by any accredited college or university. The revenue derived from the provisions of this section from fishing piers along the coast of South Carolina is hereby allocated for use of the Commercial Fisheries Division."

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SECTION 147. Section 12-21-2719 of the 1976 Code is amended to read:

  "Section 12-21-2719. Effective for licenses which expire May 31, 1993, the Department of Revenue and Taxation shall begin converting all coin-operated device licenses required by statute to be issued annually by the department to a biennial licensing period. The department shall convert its annual licensing activity to a biennial system as provided in this section.
  (1) Upon expiration and for which an application for renewal is received by the department, the department shall issue the first license for a two-year period. Subsequent licenses on the application must be issued on an alternating basis between two-year licenses and one-year licenses. Licenses expire May thirty-first of the year designated on the license. Licenses issued for a licensing period expiring after May 31, 1994, must be issued for two years. This section does not prevent the department from refusing to issue a license for failure to remit taxes, fees, penalties, or interest due and payable under Title 12.
  (2) The department shall charge one-half of the biennial license for one-year licenses issued during the conversion process."

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SECTION 148. Section 12-21-2720(A) of the 1976 Code is amended to read:

  "(A) Every person who maintains for use or permits the use of, on a place or premises occupied by him, one or more of the following machines or devices shall apply for and procure from the South Carolina Department of Revenue and Taxation a license effective for two years for the privilege of making use of the machine in South Carolina and shall pay for the license a tax of fifty dollars for each machine in item (1), two hundred dollars for each machine in item (2), and three thousand dollars for each machine in item (3):
    (1) a machine for the playing of music or kiddy rides operated by a slot or mechanical amusement devices and juke boxes in which is deposited a coin or thing of value. A machine on which an admissions tax is imposed is exempt from the C.O.D. license provisions of this section.
    (2) a machine for the playing of amusements or video games, without free play feature, or machines of the crane type operated by a slot in which is deposited a coin or thing of value and a machine for the playing of games or amusements, which has a free play feature, operated by a slot in which is deposited a coin or thing of value, and the machine is of the nonpayout pin table type with levers or `flippers' operated by the player by which the course of the balls may be altered or changed. A machine required to be licensed under this item is exempt from the license fee if an admissions tax is imposed.
    (3) a machine of the nonpayout type, in-line pin game, or video game with free play feature operated by a slot in which is deposited a coin or thing of value except machines of the nonpayout pin table type with levers or `flippers' operated by the player by which the course of the balls may be altered or changed."

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SECTION 149. Section 12-21-2726 of the 1976 Code is amended to read:

  "Section 12-21-2726. Every person who maintains for use or permits the use of, on any place or premises occupied by him, any machine subject to the license imposed by this article shall by way of proof of licensing have a current license attached to the machine, or alternatively the person shall have in his possession and produce on demand a receipt for a cashier's check, money order, or certified check not more than thirty days old made payable to the order of the South Carolina Department of Revenue and Taxation showing thereon the name or model except that those machines described in and licensed as item (3) machines may by way of proof of licensing have a current license on display at the premises occupied by him showing only the following information:
  (1) the type of machine;
  (2) the number of machines; and
  (3) location showing the address of the machines. The owners of those machines described in and licensed as item (3) machines are specifically allowed to take advantage of those provisions of the United States Code which also authorize a tax credit for state-imposed taxes."

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SECTION 150. Section 12-21-3320(2) of the 1976 Code is amended to read:

  "(2) `Commission' or `Department' means the South Carolina Department of Revenue and Taxation."

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SECTION 151. Section 12-21-3441 of the 1976 Code is amended to read:

  "Section 12-21-3441. In addition to the bingo taxes levied under the provisions of Section 12-21-3440(B) of the 1976 Code, and beginning July 1, 1991, an additional one dollar is levied for each bingo player a session for sessions conducted by holders of a Class AA license and an additional fifty cents is levied for each bingo player a session for sessions conducted by holders of a Class B license each fiscal year. Nine hundred forty-eight thousand dollars of the total revenues received from bingo taxes as provided by Section 12-21-3440 and collected by the Department of Revenue and Taxation must be deposited monthly in equal amounts into an account in the office of the State Treasurer and called `Division on Aging Senior Citizen Centers Permanent Improvement Fund' (Fund). All interest earned on monies in the fund must be credited to the fund. The remaining revenues if any, generated by the bingo taxes must be deposited as provided in Section 12-21-3590."

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SECTION 152. Section 12-21-3590(C) of the 1976 Code is amended to read:

  "(C) Twelve and one-half percent of the annual revenue derived from the provisions of this article which is collected from bingo within the State must be deposited with the State Treasurer to be credited to the account of the South Carolina Division on Aging. This amount must be allocated to each county for distribution in home community services for the elderly as follows:
  (1) One-half of the funds must be divided equally among the forty-six counties.
  (2) The remaining one-half must be divided based on the percentage of the county's population age sixty and above in relation to the total state population using the latest report of the United States Bureau of the Census.
  (3) The aging service providers receiving these funds must be agencies recognized by the South Carolina Division on Aging and the Area Agencies on Aging."

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SECTION 153. Section 12-21-3600 of the 1976 Code is amended to read:

  "Section 12-21-3600. A promoter of a bingo game who pays a winner a prize valued at one thousand dollars or more shall record the name, address, and social security number of the winner and the value of the prize he received and shall report the information to the Department of Revenue and Taxation quarterly."

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SECTION 154. Section 12-23-310 of the 1976 Code is amended to read:

  "Section 12-23-310. Every foreign land association and other business of a like class not incorporated under the laws of this State shall each, before transacting business in this State, pay an annual license fee of one hundred dollars to the Department of Insurance of this State on or before the thirty-first day of March in each year, to be deposited by him in the State Treasury. Such license shall expire on the thirty-first day of March of the succeeding year."

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SECTION 155. Section 12-23-815 of the 1976 Code is amended to read:
  "Section 12-23-815. The Department of Revenue and Taxation shall issue assessments for the tax provided by this article based on information provided by the Department of Health and Environmental Control and the Health and Human Services Finance Commission."

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SECTION 156. Section 12-23-820 of the 1976 Code is amended to read:

  "Section 12-23-820. The Department of Revenue and Taxation shall administer and enforce the provisions of this article, and may promulgate regulations to enforce such provisions. The hospital tax levied pursuant to this article must be collected in accordance with the provisions of Chapter 54 of Title 12."

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SECTION 157. Section 12-23-830 of the 1976 Code is amended to read:

  "Section 12-23-830. On the first day of each quarter, each general hospital shall remit one-fourth of its annual tax to the Department of Revenue and Taxation. The tax must be paid for each quarter a hospital is in operation. If a hospital ceases operations, the taxes not paid as a result of the cessation of operations must be apportioned among other hospitals in operation."

Tax reporting by county

SECTION 158. Chapter 27, Title 12 of the 1976 Code is amended by adding:

  "Section 12-27-35. The department, in addition to other reporting requirements of this chapter, shall require that the taxes imposed pursuant to Chapter 27 of Title 12 be reported and aggregated by county. This information must be submitted to the department on forms prescribed by the department in conjunction with reports that are submitted pursuant to Section 12-27-30."

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SECTION 159. Section 12-27-270 of the 1976 Code is amended to read:

  "Section 12-27-270. Gasoline purchased for and used in state-owned school buses and in state-owned administrative and service vehicles used in the pupil transportation program shall be exempt from state gasoline taxes. The State Board of Education, together with the Department of Transportation, and the Department of Revenue and Taxation, shall determine the method and procedure for the administration of this section."

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SECTION 160. Section 12-27-380 of the 1976 Code is amended to read:

  "Section 12-27-380. The license tax of ten and thirty-four hundredths cents a gallon on gasoline as levied and provided for in this article must be distributed as follows: nine and thirty-four hundredths cents on each gallon must be turned over to the Department of Transportation for the purpose of the department and one cent a gallon must be deposited to the credit of the general fund of the State."

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SECTION 161. Section 12-27-390 of the 1976 Code is amended to read:

  "Section 12-27-390. (A) Commencing with the collection of gasoline taxes falling due on and after July 1, 1968, one-half of one percent of the proceeds from the gasoline tax imposed pursuant to Section 12-27-230 must be transmitted to the Department of Natural Resources to be placed to the credit of a special water recreational resources fund of the state treasury and all balances in the fund must be carried forward each year so that no part of it reverts to the general fund of the State. All of the funds must be allocated based upon the number of boats or other watercraft registered in each county pursuant to law and expended, subject to the approval of a majority of the county legislative delegation, including a majority of the resident senators, if any, for the purpose of water recreational resources. The amounts allocated must be deducted from the gross proceeds of the gasoline tax imposed under Section 12-27-230 before net proceeds to be distributed to the Department of Transportation and counties pursuant to Section 12-27-380 are determined. This section does not reduce the one cent per gallon license tax now being distributed to the counties pursuant to Section 12-27-380.
  (B) The governing body of any coastal county, upon recommendation of a majority of the legislative delegation, including a majority of the resident senators, shall refund to any person purchasing gasoline for use in commercial or charter fishing boats operated exclusively in the coastal waters of this State all or a portion of the state tax on the gasoline returned to the county pursuant to this section. The refund, if any, must be made pursuant to regulations established by the governing body of the county.
  (C) The Department of Natural Resources must be reimbursed for engineering, design, and rehabilitation costs incurred in the administration of the provisions of this section. Funds for reimbursement must be transferred from funds collected under the provisions of this section."

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SECTION 162. Section 12-27-405 of the 1976 Code is amended to read:

  "Section 12-27-405. Acquisitions by the Department of Transportation under the `C' Fund program are exempt from the requirements of all appraisal provisions of Title 28, Chapter 2 (Sections 28-2-10 et seq.), and Sections 1-11-110, 3-5-50, 3-5-100, 3-5-330, 4-17-20, 5-27-150, 5-31-420, 5-31-430, 5-31-440, 5-31-610, 5-35-10, 6-11-130, 6-23-290, 13-1-350, 13-11-80, 24-1-230, 28-3-20, 28-3-30, 28-3-140, 28-3-460, 46-19-130, 48-11-110, 48-15-30, 48-15-50, 48-17-30, 48-17-50, 49-17-1050, 49-19-1060, 49-19-1440, 50-13-1920, 50-19-1320, 51-13-780, 54-3-150, 55-9-80, 55-11-10, 57-3-700, 57-5-370, 57-5-380, 57-21-200, 57-25-190, 57-25-470, 57-25-680, 57-27-70, 58-9-2030, 58-15-410, 58-17-1200, 13-1-1330, 58-27-130, 58-31-50, 59-19-200, 59-105-40, 59-117-70, 59-123-90."

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SECTION 163. Section 12-27-430(7) of the 1976 Code is amended to read:
  "(7) The South Carolina Department of Revenue and Taxation shall promulgate regulations for the procedures necessary to claim the tax incentives."

Special use deleted

SECTION 164. Section 12-27-1210 of the 1976 Code is amended to read:

  "Section 12-27-1210. In addition to the tax levied by Sections 12-27-230 and 12-27-240 every oil company subject to the tax imposed by those sections shall pay to the State an additional tax in an amount equal to three cents a gallon on all gasoline, combinations of gasolines, or substitutes for gasoline, sold or consigned, used, shipped, or distributed for the purpose of sale within this State. All provisions of this chapter apply with equal force and effect to the additional tax on gasoline levied by this section."

Special use deleted

SECTION 165. Section 12-27-1220 of the 1976 Code is amended to read:

  "Section 12-27-1220. In addition to the tax imposed by Sections 12-27-510 and 12-27-520, every person, firm, corporation, municipality, or county subject to tax imposed by those sections, or any subdivision of a municipality or county, shall pay an additional tax of three cents a gallon for every gallon of gasoline or other like product of petroleum under whatever name designated on which a tax is imposed by Section 12-27-510. All the provisions of this chapter apply with equal force and effect to the additional tax on gasoline levied by this section."

Special use deleted

SECTION 166. Section 12-27-1230 of the 1976 Code is amended to read:

  "Section 12-27-1230. In addition to the tax levied by Section 12-29-310, a tax of three cents a gallon is imposed upon all fuel sold or delivered by any supplier to any person not licensed as a supplier under the provisions of Chapter 29 of this title. All the provisions of Chapter 29 of this title apply with equal force and effect to the additional tax levied by this section."

Special use deleted

SECTION 167. Section 12-27-1240 of the 1976 Code is amended to read:

  "Section 12-27-1240. In addition to the road tax levied by Section 12-31-410, an additional road tax equivalent to three cents a gallon is imposed upon the amount of gasoline or other motor fuel used by every motor carrier in its operations within this State. All the provisions of Chapter 31 of this title apply with equal force and effect to the additional tax on gasoline levied by this section."

Obsolete provision deleted

SECTION 168. Section 12-27-1250 of the 1976 Code is amended to read:

"Section 12-27-1250. In addition to the credit provided for in Section 12-31-450, every motor carrier subject to the tax imposed by Section 12-27-1240 is entitled to a credit on the tax equivalent to three cents a gallon on all gasoline or other motor fuel purchased by the carrier within this State for use in operations either within or without this State and upon which gasoline or other motor fuel the tax imposed by the laws of this State has been paid by such carrier. This refund may be made only if the carrier has fully complied with all regulations of the commission and the provisions of Chapter 31 of this title."

Revenues credited to State Highway Fund

SECTION 169. Section 12-27-1260 of the 1976 Code is amended to read:

  "Section 12-27-1260. The revenue derived from the tax levied by Sections 12-27-1210, 12-27-1220, 12-27-1230, and 12-27-1240 in this chapter must be remitted to the State Treasurer to be credited to the State Highway Fund to be used for highway transportation purposes. All revenues in the existing fund for the Strategic Highway Plan for Improving Mobility and Safety Program shall be transferred to the State Highway Fund upon the effective date of this act. These revenues may be used by the department to service bonded indebtedness for highway transportation purposes."

Plan not to be modified; exceptions

SECTION 170. Section 12-27-1265 of the 1976 Code is amended by adding:

  "Section 12-27-1265. The South Carolina Department of Highways and Public Transportation Commission shall not change, modify, or substitute any pending construction project included in the ten-year plan of the March 4, 1993 report issued to the General Assembly for the Strategic Highway Plan for Improving Mobility and Safety Program. However, this shall not preclude the Commission of the Department of Transportation, once constituted, from modifying or altering the ten-year plan as may be necessary in the future."

Use of revenues revised

SECTION 171. Section 12-27-1290 of the 1976 Code is amended to read:

  "Section 12-27-1290. The department must review projects for the possibility of constructing toll roads to defray the cost of these projects pursuant to the authority granted the department in Section 57-5-1330. No project may be funded by means of imposing a toll on the users of the project unless in conjunction with federal funds authorized for use on toll roads it is determined to be substantially feasible by the department. The funds derived from tolls must be returned to the State Highway Fund until the fund is reimbursed or used to service bonded indebtedness for highway transportation purposes. Upon reimbursement, all toll charges shall cease."

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SECTION 172. Section 12-27-1320(A) of the 1976 Code is amended to read:

  "(A) Of total state source highway funds expended in a fiscal year on highway, bridge, and building construction, and building renovation contracts, the Department of Transportation shall ensure that not less than:"

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SECTION 173. Section 12-27-1510 of the 1976 Code is amended to read:

  "Section 12-27-1510. A person who purchases and uses gasoline and other motor fuels taxed by this chapter and Chapter 29 of this title on trucking equipment for nonhighway purposes, other than propelling a motor vehicle, may apply for a refund of or credit on the fuel tax paid. Fuel refunds or credits for nonhighway use must be in accordance with regulations set forth by the Department of Revenue and Taxation, and procedures used in filing for refunds or credits must be uniform with procedures required by the Internal Revenue Service. A person claiming a fuel tax refund or credit on truck equipment for nonhighway purposes shall make application to the department on proper forms within one year from the date of purchase of motor fuel which has not been used or consumed by the purchaser before the filing of the application provided for in this section. The department may allow quarterly refunds for large users. If auxiliary equipment and the motor vehicle are powered off the same fuel tank, the Department of Revenue and Taxation shall determine what percentage of fuel is allowed for nonhighway purposes and subject to refund."

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SECTION 174. Section 12-29-20 of the 1976 Code is amended to read:

  "Section 12-29-20. The Department of Revenue and Taxation shall administer and enforce the provisions of this chapter, and may from time to time make such rules and regulations, not inconsistent with this chapter, as it may deem necessary to enforce such provisions, and such rules and regulations shall have the full force and effect of law."

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SECTION 175. Section 12-29-110 of the 1976 Code is amended to read:

  "Section 12-29-110. It shall be unlawful for any person to sell or deliver fuel within this State for use within this State unless such person is the holder of an uncancelled license as a supplier issued by the Department of Revenue and Taxation, or unless the tax on such fuel has been paid to a supplier."

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SECTION 176. Section 12-29-150 of the 1976 Code is amended to read:

  "Section 12-29-150. Any person who purchases, sells, or uses combustible gases or liquids, except gasoline which may be used to propel a motor vehicle, shall be licensed by the Department of Revenue and Taxation and shall file with the department, upon such forms as the department may prescribe, a report which shall show the amount of such fuel purchased, sold, or used; provided, that a person licensed as a supplier or a person buying fuel for use and not for resale upon which the tax has been paid at the time of the purchase shall not be required to be licensed by this section, except that any person who operates or causes to be operated motor carriers and who maintains bulk storage facilities in this State for the purpose of purchasing and storing tax paid motor fuel other than gasoline for use in such motor carriers shall secure a license and file reports as required by this section; provided, further, that any person acquiring any such fuel solely for heating purposes and not for resale or for the sole purpose of operating locomotives, farm tractors, pleasure boats or commercial watercraft, aircraft and such fuel used solely for the purpose of manufacturing or processing materials shall not be required to be licensed under this section; provided, further, that the provisions of this section shall not apply to a seller-user of liquified petroleum gas. All combustible gases and liquids not specifically reported and shown to be used for nonhighway purposes shall be taxed at the rate of thirteen cents per gallon together with interest and penalties as provided by Section 12-29-620.
  The department may require any person required to secure a license under the provisions of this section to post a bond either by cash or by a surety company authorized to do business in this State in an amount to be determined by the Department of Revenue and Taxation. This section shall not apply to any person or firm maintaining storage facilities for kerosene of not more than three hundred gallons and whose average monthly sales do not exceed twelve hundred gallons. The reports required by this section shall be filed on or before the twentieth day of each month and shall show all inventories, purchases, sales and use of fuel by the licensee during the preceding calendar month."

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SECTION 177. Section 12-31-20 of the 1976 Code is amended to read:

  "Section 12-31-20. The Department of Public Safety shall enforce the provisions of this chapter with respect to the possession of correct registration and display of proper identification markers. The Department of Revenue and Taxation shall administer and enforce the provisions of this chapter, except the provisions respecting possession of registration and display of identification markers."

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SECTION 178. Section 12-31-50 of the 1976 Code is amended to read:

  "Section 12-31-50. When any person is discovered in this State operating a vehicle in violation of any of the provisions of this chapter, it shall be unlawful for anyone thereafter to operate such vehicle on the streets or highways in this State except to remove it from the street or highway for the purpose of parking or storing it unless and until a bond in the amount of five hundred dollars is furnished to the Department of Public Safety in such form and with such surety or sureties or otherwise as it may prescribe, conditioned upon a proper registration card and identification marker being applied for within ten days and conditioned upon the payment of any taxes, penalties, or interest found to be due pursuant to this chapter."

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SECTION 179. Section 12-31-210 of the 1976 Code is amended to read:

  "Section 12-31-210. No motor carrier shall operate or cause to be operated in South Carolina any vehicle described in Section 12-31-10 until he has secured from the South Carolina Department of Revenue and Taxation registration card and an identification marker for each such vehicle. Persons purchasing new equipment or corporations moving new equipment into this State which are required to be registered under this chapter may have not exceeding ten days to register such new equipment."

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SECTION 180. Section 12-31-230 of the 1976 Code is amended to read:

  "Section 12-31-230. The South Carolina Department of Revenue and Taxation shall prepare forms for use in making applications for registration cards and identification markers in accordance with this chapter, and the applicant shall furnish all the information required by such forms before a registration card or identification marker is issued."

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SECTION 181. Section 12-31-240 of the 1976 Code is amended to read:

  "Section 12-31-240. The registration card and the identification marker shall be of such form as the South Carolina Department of Revenue and Taxation may prescribe. Each identification marker shall bear a number which shall be the same as the number appearing on the registration card for the same vehicle."

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SECTION 182. Section 12-31-250 of the 1976 Code is amended to read:

  "Section 12-31-250. (A) A motor carrier operating motor vehicles in this State shall apply to the South Carolina Department of Revenue and Taxation biennially for a registration card and identification marker for each power unit it operates in this State. For issuing each registration card and identification marker, a fee of eight dollars must be paid to the department upon application. For a registration card and identification marker issued during the second year of the biennial period, a fee of four dollars must be paid to the department. A person violating this section, upon conviction, must be punished as provided in Section 12-31-630.
  (B) No card or marker may be issued by the department until the fee provided in this section is paid. Thirty percent of the fees provided by this section must be credited to the State Highway Fund. The remaining portion of the fees must be deposited to the credit of the general fund of the State."

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SECTION 183. Section 12-31-260 of the 1976 Code is amended to read:

  "Section 12-31-260. The registration cards and markers provided for must be issued for the period beginning April first each biennium and are valid until March thirty-first of the biennium. Registration cards and markers that expire September 30, 1992, are extended until March 31, 1993. Beginning October 1, 1992, the South Carolina Department of Revenue and Taxation shall issue biennial registration cards and markers that expire March 31, 1995. All identification markers remain the property of the State."

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SECTION 184. Section 12-31-270 of the 1976 Code is amended to read:

  "Section 12-31-270. The registration card shall be carried in the vehicle for which it was issued at all times when the vehicle is in this State. The identification marker shall be attached or affixed to the vehicle in the place and manner prescribed by the Department of Revenue and Taxation so that it is clearly displayed at all times, and it shall at all times be kept clearly legible."

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SECTION 185. Section 12-31-280 of the 1976 Code is amended to read:

  "Section 12-31-280. In addition to the penalties herein provided, the Department of Revenue and Taxation may for good cause suspend or revoke any registration card or identification marker issued pursuant to this chapter and, thereupon, shall immediately notify the Department of Public Safety."

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SECTION 186. Section 12-31-420 of the 1976 Code is amended to read:

  "Section 12-31-420. The amount of tax due must be calculated upon the amount of gasoline or other motor fuel used by the motor carrier in its operation within this State during the reporting period. The Department of Revenue and Taxation shall develop forms to reflect the tax due in accordance with nationally recognized standards."

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SECTION 187. Section 12-31-610 of the 1976 Code is amended to read:

  "Section 12-31-610. Whenever it is discovered that any person has failed to pay the taxes, penalties, or interest, or any part thereof due pursuant to this chapter, the South Carolina Department of Revenue and Taxation is hereby authorized to make an assessment with respect thereto and there shall be added to such assessment a penalty of twenty-five per cent thereof and interest at the rate of one half of one per cent per month or fraction of a month from the time the said tax, penalty, or interest became due until paid."

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SECTION 188. Section 12-31-620 of the 1976 Code is amended to read:

  "Section 12-31-620. Should any motor carrier fail, neglect, or refuse to file the report or to pay the tax due thereon within thirty days after the date for the filing of such report and the payment of the tax as provided in this chapter, the South Carolina Department of Revenue and Taxation shall calculate the tax on the basis of the best information available to it and shall assess the tax, together with penalty and interest above provided and, in addition, the penalty provided by Section 12-31-630."

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SECTION 189. Section 12-31-640 of the 1976 Code is amended to read:

  "Section 12-31-640. Any person who operates or causes to be operated on any highway in this State any motor vehicle that does not carry a registration card as required by this chapter, or any motor vehicle that does not display, in the manner prescribed by this chapter or by the Department of Revenue and Taxation, the identification marker required by this chapter, shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than one hundred dollars. Each day's operation in violation of any provision of this section shall constitute a separate offense."

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SECTION 190. Section 12-33-70 of the 1976 Code is amended to read:

  "Section 12-33-70. The Department of Revenue and Taxation may from time to time make such reasonable regulations, not inconsistent with Chapter 3, Chapter 7, and Article 3 of Chapter 13, all of Title 61, or with the general laws of the State, as the department shall deem necessary to carry out and enforce any other provisions of law relating to the enforcement, collection and payment of the license taxes provided in Chapter 3, Chapter 7, and Article 3 of Chapter 13, all of Title 61 and this chapter and to prevent the evasion of such provisions and the failure or refusal of any person subject thereto to pay such taxes.
  The department may from time to time alter, repeal or amend such regulations or any of them. Such regulations shall be filed and published as provided for in Sections 1-1-210 to 1-1-240 and shall have the force and effect of law as provided in such sections. The department shall give additional notice thereof to all licensees in such manner as it may deem proper.
  The wilful violation of any rule or regulation made under the provisions of this section and having the force and effect of law shall constitute a violation of Chapter 3, Chapter 7, and Article 3 of Chapter 13, all of Title 61."

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SECTION 191. Section 12-33-420 of the 1976 Code is amended to read:

  "Section 12-33-420. Every licensed wholesaler shall pay an additional tax of fifty-six cents on each standard case of alcoholic liquors sold. The tax shall be paid to and collected by the Department of Revenue and Taxation in the same manner and with like penalties as provided in Sections 12-33-460 and 12-33-470. The proceeds of the tax shall be deposited into the State Treasury to the credit of the state's general funds, and shall not be subject to the provisions of Section 12-33-30, as amended, relating to the distribution of alcoholic liquor revenue to counties and municipalities."

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SECTION 192. Section 12-33-480 of the 1976 Code is amended to read:

  "Section 12-33-480. The tax levied in Sections 12-33-410 and 12-33-460 shall be due and payable on or before the twentieth day of the month next succeeding the month in which the tax accrues. On or before the twentieth day of each month every person on whom the tax is levied or imposed by Sections 12-33-410 and 12-33-460 shall render to the department, on a form prescribed by it, a statement showing the number of cases of alcoholic liquors sold for the next preceding month, together with such other information as the department may require. At the same time the report is filed, the person shall pay to the department the amount of taxes due. The taxes provided in Sections 12-33-410 and 12-33-460 constitute a debt payable to the State by the persons against whom they are charged and all the taxes, penalties, and assessments constitute a first lien upon all property of such persons. The taxes, penalties, or interest in this section must be assessed and collected in the same manner and with like effect as other taxes are assessed and collected by the Department of Revenue and Taxation. A return is considered filed on time if it is mailed and postmarked on or before the date it is required by law to be filed. Any person failing to file a return required by this section must be assessed a penalty of not more than one thousand dollars which must be assessed and collected in the same manner and with like effect as other taxes collected by the Department of Revenue and Taxation. Any person required by this section to pay any tax and who fails to do so within the time allotted shall pay, in addition to the tax, a penalty of twenty-five percent of the tax and interest at one half of one percent per month or fraction of a month from the date the tax was originally due to the date of the payment of the tax and penalty. The Department of Revenue and Taxation may in its discretion waive or reduce the penalty or interest or any part thereof prescribed in this section. The provisions of Section 12-33-450 shall determine the payment of taxes for the month of June."

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SECTION 193. Section 12-33-485 of the 1976 Code is amended to read:

  "Section 12-33-485. When a return required by this chapter is filed and the taxes shown due on the return are paid in full on or before the final due date, including any date to which the time for making the return and paying the tax has been extended by the Department of Revenue and Taxation, the person must be allowed a discount equal to one percent of the taxes shown to be due by the return. In no case shall any discount be allowed if either the return or the tax thereon is received by the department after the date due, or after the expiration of any extension granted by the department. The discount permitted a person under this section shall not exceed forty thousand dollars during any one fiscal year."

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SECTION 194. Section 12-33-620 of the 1976 Code is amended to read:

  "Section 12-33-620. The officer discovering the mixture subject to tax under Section 12-33-610 shall notify, in writing, the Department of Revenue and Taxation, advising it of the quantity discovered, together with the name and address of the person liable therefor. The department shall send by registered mail duplicate notices to the officer and the person liable for the tax giving the amount due and allowing ten days from the date of receipt of such notice for the payment of such tax."

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SECTION 195. Section 12-33-630 of the 1976 Code is amended to read:

  "Section 12-33-630. After the expiration of the ten-day notice provided for by Section 12-33-620, if the tax remains unpaid, the amount of such tax shall be deemed a debt to the State by the person liable therefor and shall be a lien upon all property of such person in this State. The Department of Revenue and Taxation shall issue a warrant under its hand and official seal, directing any duly authorized agent of the department to proceed to the levy and collection of the tax and costs in the same manner and with like effect as provided for by Sections 12-53-10 to 12-53-60."

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SECTION 196. Section 12-36-1370 of the 1976 Code is amended to read:

  "Section 12-36-1370. (A) It is presumed that tangible personal property sold by any person for delivery in this State is sold for storage, use, or other consumption in this State, unless the seller takes from the purchaser a certificate, signed by and bearing the name and address of the purchaser, to the effect that the purchase was for resale.
  (B) It is also presumed that tangible personal property received in this State by its purchaser was purchased for storage, use, or other consumption in this State."

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SECTION 197. Section 12-36-1710(G) of the 1976 Code is amended to read:

  "(G) The Department of Revenue and Taxation and the Division of Aeronautics of the Department of Commerce may not issue a license or transfer of title without first procuring from the Department of Revenue and Taxation information showing that the excise tax has been collected. The Department of Natural Resources may not license any boat or register any motor without first procuring from the Department of Revenue and Taxation information showing that the excise tax has been collected."
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SECTION 198. Section 12-36-2120(15) of the 1976 Code is amended to read:

  "(15) gasoline or other motor vehicle fuels taxed at the same rate as gasoline, fuels used in farm machinery, farm tractors, and commercial fishing vessels, and clean alternative transportation fuels as defined in regulation by the South Carolina Department of Revenue and Taxation as defined by the State Energy Office. Gasoline used in aircraft is not exempted by this item;"

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SECTION 199. Section 12-36-2660 of the 1976 Code is amended to read:

  "Section 12-36-2660. The Department of Revenue and Taxation shall administer and enforce the provisions of this chapter."

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SECTION 200. Section 12-37-220 of the 1976 Code is amended to read:

  "Section 12-37-220. (A) Pursuant to the provisions of Section 3 of Article X of the State Constitution, there shall be exempt from ad valorem taxation:
    (1) all property of the State, counties, municipalities, school districts, Water and Sewer Authorities and other political subdivisions, if the property is used exclusively for public purposes, and it shall be the duty of the Department of Revenue and Taxation and county assessor to determine whether such property is used exclusively for public purposes;
    (2) all property of all schools, colleges, and other institutions of learning and all charitable institutions in the nature of hospitals and institutions caring for the infirmed, the handicapped, the aged, children and indigent persons, except where the profits of such institutions are applied to private use;
    (3) all property of all public libraries, churches, parsonages, and burying grounds;
    (4) all property of all charitable trusts and foundations used exclusively for charitable and public purposes;
    (5) all household goods and furniture used in the home of the owner of such goods and furniture, such to include built-in equipment such as ranges, dishwashers and disposals, but this exemption shall not apply to household goods used in hotels, rooming houses, apartments, or other places of business;
    (6) all inventories of manufacturers, except manufactured articles which have been offered for sale at retail or which have been available for sale at retail. Fuel, including but not limited to uranium, special nuclear material, nuclear fuel, fossil fuel, coal, cellulose, wood or solid, liquid or gaseous hydrocarbons, held by a public utility, an affiliated interest of such public utility as defined in Section 58-27-2090 or a subsidiary of such public utility, or held by a corporation, entity or trust for the use and benefit of such public utility under orders or regulations of the Public Service Commission, shall be deemed to be inventories of manufacturers;
    (7) all new manufacturing establishments located in any of the counties of this State after July 1, 1977, for five years from the time of establishment and all additions to the existing manufacturing establishments located in any of the counties of this State for five years from the time each such addition is made if the cost of such addition is fifty thousand dollars or more. Such additions shall include additional machinery and equipment installed in the plant. Provided, however, that the exemptions authorized in this item for manufacturing establishments, and additions thereto, shall not include exemptions from school taxes or municipal taxes but shall include only county taxes. Provided, further, that all manufacturing establishments and all additions to existing manufacturing establishments exempt under statutes in effect February 28, 1978, shall be allowed their exemptions provided for by statute until such exemptions expire;
    (8) all facilities or equipment of industrial plants which are designed for the elimination, mitigation, prevention, treatment, abatement, or control of water, air, or noise pollution, both internal and external, required by the state or federal government and used in the conduct of their business. At the request of the Department of Revenue and Taxation the Department of Health and Environmental Control shall investigate the property of any manufacturer or company, eligible for the exemption to determine the portion of the property that qualifies as pollution control property. Upon investigation of the property, the Department of Health and Environmental Control shall furnish the Department of Revenue and Taxation with a detailed listing of the property that qualifies as pollution control property. For equipment that serves a dual purpose of production and pollution control, the value eligible for the ad valorem exemption is the difference in cost between this equipment and equipment of similar production capacity or capability without the ability to control pollution;
    (9) a homestead exemption for persons sixty-five years of age and older, for persons permanently and totally disabled and for blind persons in an amount to be determined by the General Assembly of the fair market value of the homestead under conditions prescribed by the General Assembly by general law;
    (10) intangible personal property. The exemptions provided in items (3) and (4) for real property shall not extend beyond the buildings and premises actually occupied by the owners of such real property.
  (B) In addition to the exemptions provided in subsection A the following classes of property shall be exempt from ad valorem taxation subject to the provisions of Section 12-3-145:
    (1) The dwelling house in which he resides and a lot not to exceed one acre of land owned in fee or for life, or jointly with a spouse, by any veteran who is one hundred percent permanently and totally disabled from a service-connected disability, if the veteran files a certificate signed by the county service officer of the total and permanent disability with the State Department of Revenue and Taxation. The exemption is allowed the surviving spouse of the veteran and is also allowed to the surviving spouse of a serviceman killed in action in the line of duty who owned the lot and dwelling house in fee or for life, or jointly with his spouse, so long as the spouse does not remarry, resides in the dwelling, and obtains by devise the fee or a life estate in the dwelling. A surviving spouse who disposes of the exempt dwelling and acquires another residence in this State for use as a dwelling house with a value no greater than one and one-half times the fair market value of the exempt dwelling may apply for and receive the exemption on the newly acquired dwelling, but no subsequent dwelling of a surviving spouse is eligible for exemption under this item. The spouse shall inform the Department of Revenue and Taxation of the change in address of the dwelling. The dwelling house is defined as a person's legal residence.
    (2) The dwelling house in which he resides and a lot not to exceed one acre of land owned in fee or for life, or jointly with his or her spouse, by a paraplegic or hemiplegic person, is exempt from all property taxation provided the person furnishes satisfactory proof of his disability to the State Department of Revenue and Taxation. The exemption is allowed to the surviving spouse of the person so long as the spouse does not remarry, resides in the dwelling, and obtains by devise the fee or a life estate in the dwelling. The dwelling house is defined as the person's legal residence. For purposes of this item, a hemiplegic person is a person who has paralysis of one lateral half of the body resulting from injury to the motor centers of the brain.
    (3) One personal motor vehicle owned or leased by any disabled veteran designated by the veteran for which special license tags have been issued by the Department of Revenue and Taxation under the provisions of Sections 56-3-1110 to 56-3-1130 or, in lieu of the license, if the veteran has a certificate signed by the county service officer or the Veterans Administration of the total and permanent disability which must be filed with the Department of Revenue and Taxation.
    (4) All property of any kind of a nonprofit corporation created for the purpose of providing water supply or sewage disposal, or a combination of such services, organized pursuant to Sections 33-35-10 and 33-35-170.
    (5) All property of the American Legion, the Veterans of Foreign Wars, the Spanish American War Veterans, the Disabled American Veterans, and Fleet Reserve Association or any similar Veterans Organization chartered by the Congress of the United States, whether belonging to the department or to any of the Posts in this State when used exclusively for the purpose of such organization and not used for any purpose other than club rooms, offices, meeting places or other activities directly in keeping with the policy stated in the National Constitution of such organization, and such property is devoted entirely to its own uses and not held for `pecuniary profit'. For the purposes of this item `pecuniary profit' refers to income received from the sale of alcoholic beverages to persons other than bona fide members and their bona fide guests, or any income, any part of which inures to the benefit of any private individual. Where any structure or parcel of land is used partly for the purposes of such organization and partly for such pecuniary profits, the area for pecuniary profits shall be assessed separately and that portion shall be taxed.
    (6) All property owned and used or occupied by any Young Women's Christian Association, Young Men's Christian Association or the Salvation Army in this State and used for the purpose of or in support of such organizations but the exemption herein provided shall not apply to such portions of any such property rented for purposes not related to the functions of the organization.
    (7) All property owned and used or occupied by The Boy's or Girl's Scouts of America and used exclusively for the purposes of those organizations.
    (8) Properties of whatever nature or kind owned within the State and used or occupied by the Palmetto Junior Homemakers Association, the New Homemakers of South Carolina, the South Carolina Association of Future Farmers of America and the New Farmers of South Carolina, so long as such properties are used exclusively to promote vocational education or agriculture, better business methods and more effective organization for farming or to encourage thrift or provide recreation for persons studying agriculture or home economics in the public schools.
    (9) All wearing apparel of the person required to make a return and of the family of such person.
    (10) Notwithstanding any other provisions of law, the property of telephone companies and rural telephone cooperatives operating in this State used in providing rural telephone service, which was exempt from property taxation as of December 31, 1973, shall be exempt from such property taxation; provided, however, that the amount of property subject to ad valorem taxation of any such company or cooperative in any tax district shall not be less than the net amount to which the tax millage was applied for the year ending December 31, 1973. Any property in any tax district added after December 31, 1973, shall likewise be exempt from property taxation in the proportion that the exempt property of such company or cooperative as of December 31, 1973, in that tax district was to the total property of such company or cooperative as of December 31, 1973, in that tax district.
    (11) All property of nonprofit housing corporations devoted exclusively to providing below-cost housing for the aged or for handicapped persons or for both aged and handicapped persons as authorized by Section 202 of the Housing Act of 1959 and regulated by regulations that appear in the Federal Register, 24 CFR Part 885. The reference date of the Housing Act of 1959 is as provided in Section 12-7-20(11).
    (12) The property of any fraternal society, corporation or association, when the property is used primarily for the holding of its meetings and the conduct of its business and no profit or benefit therefrom shall inure to the benefit of any private stockholders or individuals.
    (13) All agricultural products owned by the producer in this State.
    (14) All farm machinery and equipment including self-propelled farm machinery and equipment except for motor vehicles licensed for use on the highways. For the purpose of this section `self-propelled farm machinery and equipment' means farm machinery or equipment which contains within itself the means for its own locomotion. For purposes of this item, farm equipment includes greenhouses.
    (15) All livestock and live poultry.
    (16)(a) The property of any religious, charitable, eleemosynary, educational, or literary society, corporation, or other association, when the property is used by it primarily for the holding of its meetings and the conduct of the business of the society, corporation, or association and no profit or benefit therefrom inures to the benefit of any private stockholder or individual.
      (b) The property of any religious, charitable, or eleemosynary society, corporation, or other association when the property is acquired for the purpose of building or renovating residential structures on it for not-for-profit sale to economically disadvantaged persons, but this exemption may not be claimed for more than five tax years on a single property. Further, the total properties for which the religious, charitable, or eleemosynary society, corporation, or other association may claim this exemption in accordance with this paragraph may not exceed fifteen acres per county within the State.
    (17) Personal property in transit with `no situs' status as defined in Article 7 of Chapter 37 of Title 12 and subject to the record keeping requirements and penalties prescribed in that article shall not be subject to ad valorem taxation.
    (18) Real property leased on a nonprofit basis, to a state agency, county, municipality or other political subdivision so long as it is used for a general public purpose; provided, however, this exemption shall not apply to property used for office space or warehousing.
    (19) All property owned by Volunteer Fire Departments and Rescue Squads used exclusively for the purposes of such departments and squads.
    (20) All property of nonprofit museums which is used exclusively for such purpose.
    (21) All property leased to and operated by the South Carolina Public Service Authority for the generation or transmission of electric power shall be deemed for all tax purposes to be property of the Authority and exempt from ad valorem taxes.
    (22) All community owned recreation facilities opened to the general public and operated on a nonprofit basis.
    (23) Notwithstanding any other provision of law, property heretofore exempt from ad valorem taxation by reason of the imposition upon such property or the owner of such property of a tax other than an ad valorem tax pursuant to the provisions of Section 12-11-30, Section 12-13-50 or Section 12-21-1080 shall continue to be entitled to such exemption.
    (24) All property of nonprofit or eleemosynary community theater companies, symphony orchestras, county and community arts councils and commissions and other such companies, which is used exclusively for the promotion of the arts.
    (25) All personal property loaned or leased on a nonprofit basis to a state agency, county, municipality, or other political subdivision, or to an organization exempt from federal income tax under Internal Revenue Code Section 501 through 514 as defined in item (11) of Section 12-7-20, for at least thirty days during the tax year, so long as such personal property is used solely for the purpose of public display and not for the use of such state agency, county, municipality, or other political subdivision, or exempt organization.
    (26) All personal motor vehicles owned by recipients of the Medal of Honor for which special license tags have been issued by the Department of Revenue and Taxation under the provisions of Article 16 of Chapter 3 of Title 56 shall be exempt from state, county, and municipal taxes.
    (27) All personal motor vehicles, owned or issued either solely or jointly by persons required to use wheelchairs, for which special license tags have been issued by the Department of Revenue and Taxation under the provisions of Section 56-3-1910, are exempt from state, county, and municipal taxes.
    (28) All carnival equipment owned, leased, or used by a foreign corporation or other nonresident of this State, not physically present within State for an aggregate of more than six months of the tax year, and having paid an ad valorem or like tax in at least one other state.
    (29) One personal motor vehicle or truck, not exceeding three-quarter ton, owned or leased by and licensed and registered in the name of any member or former member of the armed forces who was a prisoner of war (POW) in World War I, World War II, the Korean Conflict, or the Vietnam Conflict and who is a legal resident of this State, for which motor vehicle or truck a special tag has been issued by the Department of Revenue and Taxation in accordance with the provisions of Sections 56-3-1150 and 56-3-1160, is exempt from state, county, and municipal taxes. This exemption also extends to the surviving spouse of a qualified former POW for the lifetime or until the remarriage of the surviving spouse.
    (30) All inventories.
    (31) All real property of churches which extends beyond the buildings and premises actually occupied by the churches which own the real property if no profit or benefit from any operation on the churches' real property inures to the benefit of any private stockholder or individual and no income producing ventures are located on the churches' real property. This exemption does not change any exemption provided for churches or other entities in item (3) of subsection A of this section and item (c), Section 3 of Article X of the Constitution of this State but is an additional exemption for churches as provided in this item.
    (32) All new corporate headquarters, corporate office facilities, distribution facilities, and all additions to existing corporate headquarters, corporate office facilities, or distribution facilities located in South Carolina, established or constructed, or placed in service, after June 27, 1988, are exempt from nonschool county ad valorem taxes for a period of five years from the time of establishment, construction, or being placed in service if the cost of the new construction or additions is fifty thousand dollars or more and seventy-five or more new jobs which are full-time are created in South Carolina. For the purpose of this exemption, the term:
      (1) `new job' means any job created by an employer in South Carolina at the time a new facility or an expansion is initially staffed, but does not include a job created when an employee is shifted from an existing South Carolina location to work in a new or expanded facility;
      (2) `full-time' means a job requiring a minimum of thirty-five hours of an employee's time a week for the entire normal year of company operations or a job requiring a minimum of thirty-five hours of an employee's time for a week for a year in which the employee was initially hired for or transferred to the South Carolina corporate headquarters, corporate office facility, or distribution facility and worked at a rented facility pending construction of a corporate headquarters, corporate office facility, or distribution facility;
      (3) `corporate headquarters' means the location where corporate staff members or employees are domiciled and employed, and where the majority of the company's financial, personnel, legal, planning, or other business functions are handled either on a regional or national basis and must be the sole such corporate headquarters within the region or nation;
      (4) `staff employee' or `staff member' means executive, administrative, or professional worker. At least eighty percent of an executive employee's business functions must involve the management of the enterprise and directing the work of at least two employees. An executive employee has the authority to hire and fire or has the authority to make recommendations related to hiring, firing, advancement, and promotion decisions, and an executive employee must customarily exercise discretionary powers. An administrative employee is an employee who is not involved in manual work and whose work is directly related to management policies or general business operations. An administrative employee must customarily exercise discretion and independent judgment. A professional employee is an employee whose primary duty is work requiring knowledge of an advanced type in a field of science or learning. This knowledge is characterized by a prolonged course of specialized study. The work must be original and creative in nature, and the work cannot be standardized over a specific period of time. The work must require consistent exercise of discretion;
      (5) `region' or `regional' means a geographic area comprised of either:
        (a) at least five states, including South Carolina, or
        (b) two or more states, including South Carolina, if the entire business operations of the corporation are performed within fewer than five states;
      (6) `corporate office facility' means the location where corporate managerial, professional, technical, and administrative personnel are domiciled and employed, and where corporate financial, personnel, legal, technical, support services, and other business functions are handled. Support services include, but are not limited to, claims processing, data entry, word processing, sales order processing, and telemarketing;
      (7) `distribution facility' means an establishment where shipments of tangible personal property are processed for delivery to customers, but the term `distribution facility' does not include an establishment which operates as a location where retail sales of tangible personal property are made to customers. A distribution facility includes establishments which process customer sales orders by mail, telephone, or electronic means, if the establishment also processes shipments of tangible personal property to customers. The terms `retail sale', and `tangible personal property', for purposes of this definition, have those meanings as contained in Chapter 35 of Title 12. Certification of the required investment and the number of new jobs which are full-time and which are created must be provided by the South Carolina Department of Revenue and Taxation to the appropriate local tax officials.
    (33) All personal property of an air carrier including aircraft used in operating an air carrier hub terminal facility in this State for a period of ten consecutive years from the date of qualification, if its qualifications are maintained. An air carrier hub terminal facility is defined in Section 55-11-500.
    (34) The facilities of all new enterprises engaged in research and development activities located in any of the counties of this State, and all additions valued at fifty thousand dollars or more to existing facilities of enterprises engaged in research and development are exempt from ad valorem taxation in the same manner and to the same extent as the exemption allowed pursuant to item (7) of subsection A of Section 12-37-220. For purposes of this section, facilities of enterprises engaged in research and development activities are facilities devoted directly and exclusively to research and development in the experimental or laboratory sense for new products, new uses for existing products, or for improving existing products. To be eligible for the exemption allowed by this section, the facility must be a separate facility devoted exclusively to research and development as defined in this section. The exemption does not include facilities used in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects."

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SECTION 201. Section 12-37-380 of the 1976 Code is amended to read:

  "Section 12-37-380. Upon receipt of such report from the Commissioner of Agriculture showing failure to arrive at a reciprocal agreement with any state and all the facts pertinent thereto, the Governor, by executive order, shall authorize the South Carolina Department of Revenue and Taxation to collect such taxes and licenses in this State as are levied and collected in such other state failing and refusing to reciprocate, if any, by summarily issuing an execution against the person who shall be liable and does not pay such equivalent tax. Such execution shall be directed to any and all levying officers of this State who shall have authority to levy and collect such execution."

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SECTION 202. Section 12-37-970 of the 1976 Code is amended to read:

  "Section 12-37-970. The assessment for property taxation of merchants' inventories, equipment, furniture and fixtures, and manufacturers' real and tangible personal property, and the machinery, equipment, furniture and fixtures of all other taxpayers required to file returns with the South Carolina Department of Revenue and Taxation for purposes of assessment for property taxation, must be determined by the department from property tax returns submitted by the taxpayers to the department on or before the last day of the fourth month after the close of the accounting period regularly employed by the taxpayer for income tax purposes in accordance with Chapter 7 of this title. The department by regulation shall prescribe the form of return required by this section, the information to be contained in it, and the manner in which the returns must be submitted. Every taxpayer required to make return to the department of property for assessment for property taxation must make the return to the department not less than once each calendar year. Whenever by a change of accounting period, or otherwise, more than one accounting period ends within any one calendar year, the taxpayer must make one such return within the prescribed time for filing following the end of each of the accounting periods and the department shall determine the assessment from the return setting forth the greatest value.
  When property required to be returned as herein provided is sold after the end of the seller's accounting year and before January first next ensuing and when the purchaser's accounting year ends after the seller's and before January first next ensuing, the property must be returned by the seller as of the end of his accounting period. The purchaser is not required to list and return the property as of the close of his accounting period during the calendar year of sale. The seller and the purchaser are jointly and singularly liable for the tax that is due and payable by reason of this provision. The provision of this section does not apply to motor vehicles licensed for use on public highways.
  When property required to be returned as provided in this section is sold before the end of the seller's accounting year and before January first next ensuing and when the purchaser's accounting year ends before the date of purchase and before January first next ensuing, the property must be listed and returned by the taxpayer holding title as of December thirty-first and is liable for the tax for the ensuing year.
  The Department of Revenue and Taxation shall forward the assessments prepared as a result of the returns submitted pursuant to this section to the appropriate local taxing authorities no later than August fifteenth of the applicable tax year."

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SECTION 203. Section 12-37-975 of the 1976 Code is amended to read:

  "Section 12-37-975. The Department of Revenue and Taxation may permit any person to substitute an amended return for the original return up to the last day prescribed for filing the return, including any extension of time granted by the department. The department in its discretion may accept or reject an amended return filed after the time prescribed for filing the return. An amended return may not operate to start or extend the limitation period for assessment and collection of taxes."

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SECTION 204. Section 12-37-1120 of the 1976 Code is amended to read:

  "Section 12-37-1120. All property claimed to be `no situs' under this article shall be designated as being `in transit' upon the books and records of the warehouse wherein it is located, which books and records of the warehouse shall contain a full, true and correct inventory of all such property. The books and records of any such warehouse with reference to any such `in transit' property shall be at all times open to the inspection of all taxing authorities of this State and of any political subdivision thereof. Any person making claim to `no situs' status on any property as provided for by this article shall determine the percentage of amount of `no situs' property by dividing the total property shipped during the entire latest period located in South Carolina, not exceeding thirty-six months, into the total property shipped outside the State of South Carolina during the same period. The percentage determined in accordance with this section shall be applied to the inventory on hand on the last day of the accounting period of the person to determine the amount of `no situs' property.
  Any person making claim to `no situs' status of any property under this article shall do so in the form and manner prescribed by the South Carolina Department of Revenue and Taxation and all such claims shall be accompanied by a certification of the warehouseman as to the percentage used."

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SECTION 205. Section 12-37-1130 of the 1976 Code is amended to read:

  "Section 12-37-1130. If any person shall wilfully deliver any statement to the South Carolina Department of Revenue and Taxation concerning `no situs' property containing a false statement of a material fact, whether it be an owner, shipper, his agent or a storage or warehouseman or his agent, he shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or by imprisonment of not less than ten days nor more than six months."

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SECTION 206. Section 12-37-1410 of the 1976 Code is amended to read:

  "Section 12-37-1410. The South Carolina Department of Revenue and Taxation is hereby directed to adjust the formula used to assess merchant's inventories and merchant's equipment, furniture, and fixtures, so that the result in assessment will be reduced to eighteen percent the first year and to be reduced ratably over a period of the next two years to arrive at a fourteen percent assessment ratio."

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SECTION 207. Section 12-37-1420 of the 1976 Code is amended to read:

  "Section 12-37-1420. The Department of Revenue and Taxation shall fix the value of the inventories, machinery, equipment, furniture, and fixtures for each year, and they shall certify such valuation to the several county auditors who shall place it on their records as the value of such property for taxation. Nothing herein shall be construed to affect the provisions of Section 12-37-1320."

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SECTION 208. Section 12-37-1610 of the 1976 Code is amended to read:

  "Section 12-37-1610. The President or designated agent of every railroad company, whose track or roadbed, or any part thereof, is located in this State, shall annually, on or before the fifteenth day of the fourth month, following the close of the company's accounting period, file a return to the South Carolina Department of Revenue and Taxation, under oath, on forms prescribed by the department. Such company shall also file a duplicate copy of the annual report to the Interstate Commerce Commission of the United States Government or a duplicate copy of the annual report required by the South Carolina Public Service Commission and any other report the Department of Revenue and Taxation may require that shall accurately detail all real and personal property of the company within and without this State."

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SECTION 209. Section 12-37-2110 of the 1976 Code is amended to read:

  "Section 12-37-2110. As used in this article, the following words shall have the following meanings:
  (a) `Company' shall be deemed and construed to mean any person, copartnership, association, corporation, or syndicate that may own or operate, or be engaged in operating, furnishing, or leasing cars, as defined and described in this section, whether formed or organized under the laws of this State or any other State or territory.
  (b) `Private car' includes a passenger car, sleeping car, dining car, express car, refrigerator car, oil or tank car, horse or stock car, fruit car, or any car designed for the carrying of a special commodity, operated upon the railroads in this State. `Private car' also includes any passenger train car, locomotive, or other equipment operated on the railroads in this State and owned, used or leased by the National Railroad Passenger Corporation, created under the Rail Passenger Service Act of 1970 (Public Law 91-518, 91st Congress) or any successor in interest other than a railroad company. `Private car' does not include freight train or passenger train cars owned by railroad companies which are used or subject to use under the ordinary per diem.
  (c) `Commission' or `Department' means the South Carolina Department of Revenue and Taxation."

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SECTION 210. Section 12-37-2410(d) of the 1976 Code is amended to read:

  "(d) `Commission' or 'Department' means the South Carolina Department of Revenue and Taxation."

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SECTION 211. Section 12-37-2650 of the 1976 Code is amended to read:

  "Section 12-37-2650. The auditor shall prepare a tax notice of all vehicles owned by the same person and licensed at the same time. A notice must be in four parts and must describe the motor vehicle by name, model, and identification number. The notice must set forth the assessed value of the vehicle, the millage, the taxes due on each vehicle, and the license period or tax year. The notice must be delivered to the county treasurer and it is the treasurer's responsibility to collect or receive payment of the taxes. One copy of the notice must be in the form of a bill or statement for the taxes due on the motor vehicle and, when practical, the treasurer shall mail that copy to the owner or person having control of the vehicle. When the tax is paid, the treasurer shall issue the taxpayer two copies of the paid receipt. One copy must be delivered by the taxpayer to the Department of Revenue and Taxation with the application for the motor vehicle license and the other copy must be retained by the treasurer. The auditor shall maintain a separate duplicate for motor vehicles. No license may be issued without the receipt being attached to the application or a copy of the notification required by Section 12-37-2610 but the county treasurer may, by other means satisfactory to the department, transmit evidence of payment of the tax which must be accepted as evidence of payment. Motor vehicles registered under the International Reciprocity Plan may pay ad valorem property taxes on a semiannual basis, and a proportional receipt must be issued by the treasurer subject to penalties in Section 12-37-2730. The treasurer, tax collector, or other official charged with the collection of ad valorem property taxes in each county may delegate the collection of motor vehicle taxes to banks or banking institutions, if each institution assigns, hypothecates, or pledges to the county, as security for the collection, federal funds or federal, state, or municipal securities in an amount adequate to prevent any loss to the county from any cause. Each institution shall remit the taxes collected daily to the county official charged with the collections. The receipt given to the taxpayer, in addition to the information required in this section and by Section 12-45-70, must contain the name and office of the treasurer or tax collector of the county and must also show the name of the banking institution to which payment was made.
  The county official charged with the collection of taxes shall send a list of the institutions collecting the taxes to the Department of Revenue and Taxation. Each institution shall certify to the department that the taxes have been paid, and the department is authorized to accept certification in lieu of the tax receipt given to the taxpayer if certification contains information required by this section.
  Tax bills (notices) for county assessed personal property valued in accordance with applicable Department of Revenue and Taxation regulations must include notification of the taxpayer's appeal rights, to include a minimum amount of information of how the taxpayer should file his appeal, to whom, and within what time period."

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SECTION 212. Section 12-37-2660 of the 1976 Code is amended to read:

  "Section 12-37-2660. The Department of Revenue and Taxation shall furnish the auditor of each county a listing of license registration applications to be mailed to the owners of motor vehicles in the respective counties. The listings shall be furnished the auditor as soon as possible but no later than sixty days before the applications are mailed by the department to vehicle owners. Listings shall be in the form of computer tapes or printouts."

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SECTION 213. Section 12-37-2670 of the 1976 Code is amended to read:

  "Section 12-37-2670. No license shall be issued by the Department of Revenue and Taxation for a period in excess of twelve months. If a license is transferred by the department from one vehicle to another, no tax shall be levied upon the vehicle to which the license is transferred until the license has expired."

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SECTION 214. Section 12-37-2680 of the 1976 Code is amended to read:

  "Section 12-37-2680. The assessed value of the vehicle shall be determined as of the first day of the month preceding that in which the license is issued. The assessed values shall be published in guides or manuals by the South Carolina Department of Revenue and Taxation and provided to the auditor of each county as often as may be necessary to provide for current values. When the value of any vehicle is not set forth in the guide or manual the auditor shall determine the value from other available information. Any person aggrieved by the valuation of his motor vehicle may appeal to the South Carolina Department of Revenue and Taxation and the department may increase, decrease or affirm the value so determined."

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SECTION 215. Section 12-37-2725 of the 1976 Code is amended to read:

  "Section 12-37-2725. When the title to a licensed vehicle is transferred, the license plate and registration certificate issued the transferor may be returned for cancellation. The license plate and registration certificate must be delivered to the auditor of the county of the vehicle's registration and tax payment. A request for cancellation must be made in writing to the auditor upon forms approved by the Department of Revenue and Taxation. The auditor, upon receipt of the license plate, registration certificate, and the request for cancellation, shall order and the treasurer shall issue a refund of property taxes paid by the transferor on the vehicle. The amount of the refund is that proportion of the tax paid that is equal to that proportion of the complete months remaining on the license plate and registration certificate that is being canceled to its whole license and registration period. The auditor shall, within five days thereafter, deliver the license plate, registration certificate, and the written request for cancellation to the Department of Revenue and Taxation. Upon receipt thereof, the Department of Revenue and Taxation shall cancel the license plate and registration certificate and may not reissue the same."

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SECTION 216. Section 12-37-2727 of the 1976 Code is amended to read:

  "Section 12-37-2727. The provisions of Section 12-37-2750 further apply to license plates and registration certificates issued and unassigned by the Department of Revenue and Taxation to a motor vehicle between September 4, 1984, and April 29, 1985. In the event an issued and unassigned license plate or registration certificate was lost, destroyed, or delivered to the Department of Revenue and Taxation, the owner shall present proof thereof to the county auditor along with the request for cancellation. The auditor, upon receipt of the cancellation request and the license plate, registration certificate, or the proof of loss of the same, must order the refund of the tax. The auditor must forward to the Department of Revenue and Taxation the request for cancellation, the license plate and the registration certificate, or the proof of the same being lost, destroyed, or delivered to the department. The department upon receipt thereof shall cancel the license plate and registration."

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SECTION 217. Section 12-39-180 of the 1976 Code is amended to read:

  "Section 12-39-180. Each county auditor, after receiving from the Comptroller General and from such other officers and authorities as are legally empowered to determine the rate or amount of taxes to be levied for the various purposes authorized by law statements of the rates and sums to be levied for the current year, shall forthwith proceed to determine the sums to be levied upon each tract and lot of real property and upon the amount of personal property, monies, and credits listed in his county in the name of each person, which must be assessed equally on all real and personal property subject to such taxes and set down in one or more columns in the manner and form as the Comptroller General shall prescribe. The Department of Revenue and Taxation or the county auditor shall place a minimum assessment of at least twenty dollars on all property that generates a tax bill."

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SECTION 218. Section 12-43-210 of the 1976 Code is amended to read:

  "Section 12-43-210. (A) All property must be assessed uniformly and equitably throughout the State. The South Carolina Department of Revenue and Taxation shall promulgate regulations to ensure equalization which must be adhered to by all assessing officials in the State.
  (B) No reassessment program may be implemented in a county unless all real property in the county, including real property classified as manufacturing property, is reassessed in the same year."

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SECTION 219. Section 12-43-220 of the 1976 Code is amended to read:

  "Section 12-43-220. Except as otherwise provided, the ratio of assessment to value of property in each class shall be equal and uniform throughout the State. All property presently subject to ad valorem taxation shall be classified and assessed as follows:
  (a) All real and personal property owned by or leased to manufacturers and utilities and used by the manufacturer or utility in the conduct of the business must be taxed on an assessment equal to ten and one-half percent of the fair market value of the property.
  Real property owned by or leased to a manufacturer and used primarily for research and development is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property under item (a) of this section. The term `research and development' means basic and applied research in the sciences and engineering and the design and development of prototypes and processes.
  Real property owned by or leased to a manufacturer and used primarily as an office building is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property under item (a) of this section if the office building is not located on the premises of or contiguous to the plant site of the manufacturer.
  Real property owned by or leased to a manufacturer and used primarily for warehousing and wholesale distribution of clothing and wearing apparel is not considered used by a manufacturer in the conduct of the business of the manufacturer for purposes of classification of property under item (a) of this section if the property is not located on the premises of or contiguous to the manufacturing site of the manufacturer.
  (b) All inventories of business establishments shall be taxed on an assessment equal to six percent of the fair market value of such property and all power driven farm machinery and equipment except motor vehicles registered with the South Carolina Department of Revenue and Taxation owned by farmers and used on agricultural lands as defined in this article shall be taxed on an assessment equal to five percent of the fair market value of such property; provided, that all other farm machinery and equipment and all livestock and poultry shall be exempt from ad valorem taxes.
  (c) The legal residence and not more than five acres contiguous thereto, when owned totally or in part in fee or by life estate and occupied by the owner of the interest, is taxed on an assessment equal to four percent of the fair market value of the property. When the legal residence is located on leased or rented property and the residence is owned and occupied by the owner of a residence on leased property, even though at the end of the lease period the lessor becomes the owner of the residence, the assessment for the residence is at the same ratio as provided in this item. If the lessee of property upon which he has located his legal residence is liable for taxes on the leased property, then the property upon which he is liable for taxes, not to exceed five acres contiguous to his legal residence, must be assessed at the same ratio provided in this item. If this property has located on it any rented mobile homes or residences which are rented or any business for profit, this four percent value does not apply to those businesses or rental properties. This subsection (c) is not applicable unless the owner of the property or his agents make written application to the county assessor on or before the first penalty date for taxes due for the first tax year in which the assessment under this article is made and certify to the following statement: `Under the penalty of perjury I certify that I meet the qualifications for the special assessment ratio for a legal residence as of January first of the appropriate tax year'.
  The assessor shall have printed in the local newspaper during the period January through December at least five notices calling to public attention the provisions of filing the application as a prerequisite for claiming this classification. Failure to file within the prescribed time constitutes abandonment of the owner's right for this classification for the current tax year, but the local taxing authority may extend the time for filing upon a showing satisfactory to it that the person had reasonable cause for not filing on or before the first penalty date.
  No further applications are necessary while the property for which the initial application was made continues to meet the eligibility requirements of this item. The owner shall notify the assessor of any change in use within six months of the change.
  If a person signs the certification and is not eligible or thereafter loses eligibility and fails to notify the county assessor within the allotted time, a penalty of ten percent and interest at the rate of one-half of one percent a month must be paid on the difference between the amount that was paid and the amount that should have been paid, but not less than thirty dollars nor more than the current year's taxes.
  The governing body of the county concerned as an alternative may elect, determine, and direct that the tax assessor shall determine and designate the various properties to be subject to the special assessment ratio provided in this subsection. Upon the determination by the governing body of the county concerned, no publication of notice is required and no application or other certification is then required.
  (d) (1) Agricultural real property which is actually used for such agricultural purposes shall be taxed on an assessment equal to:
      (A) Four percent of its fair market value for such agricultural purposes for owners or lessees who are individuals or partnerships and certain corporations which do not:
          (i) Have more than ten shareholders.
        (ii) Have as a shareholder a person (other than an estate) who is not an individual.
        (iii) Have a nonresident alien as a shareholder.
        (iv) Have more than one class of stock.
      (B) Six percent of its fair market value for such agricultural purposes for owners or lessees who are corporations, except for certain corporations specified in (A) above.
    (2) (A) `Fair market value for agricultural purposes', when applicable to land used for the growth of timber, is defined as the productive earning power based on soil capability to be determined by capitalization of typical cash rents of the lands for timber growth or by capitalization of typical net income of similar soil in the region or a reasonable area of the region from the sale of timber, not including the timber growing thereon, and when applicable to land used for the growth of other agricultural products the term is defined as the productive earning power based on soil capability to be determined by capitalization of typical cash rents or by capitalization of typical net annual income of similar soil in the region or a reasonable area of the region, not including the agricultural products thereon. Soil capability when applicable to lands used for the growth of timber products means the capability of the soil to produce such timber products of the region considering any natural deterrents to the potential capability of the soil as of the current assessment date. The term, when applicable to lands used for the growth of other agricultural products, means the capability of the soil to produce typical agricultural products of the region considering any natural deterrents to the potential capability of the soil as of the current assessment date. The term `region' means that geographical part of the State as determined by the department to be reasonably similar for the production of the agricultural products. After average net annual earnings have been established for agricultural lands, they must be capitalized to determine use-value of the property based on a capitalization rate which includes:
  1. an interest component;
  2. a local property tax differential component;
  3. a risk component;
  4. an illiquidity component.
  Each of these components of the capitalization rate must be based on identifiable factors related to agricultural use of the property. The interest rate component is the average coupon (interest) rate applicable on all bonds which the Federal Land Bank of Columbia, which serves South Carolina farmers, has outstanding on July first of the crop-years being used to estimate net earnings and agricultural use-value. Implementation of the provisions contained in this section is the responsibility of the department.
      (B)(i) For tax year 1988 and subsequent tax years, fair market value for agricultural purposes must be determined by adjusting the applicable base year value by an amount equal to the product of multiplying the applicable base year value by a percentage factor obtained through the formula provided in this item. For tax year 1988, the applicable base year is 1981. After the initial use of the valuation method provided in this item for tax year 1988, fair market value for agricultural purposes must be redetermined every three years if the percentage factor in that year exceeds five percent but at least every six years regardless of the percentage.
        (ii) The percentage factor provided in this item is derived from the most recent edition of the United States Department of Agriculture publication `AGRICULTURAL LAND VALUES AND MARKETS', specifically, from `Table 1--Farm Real Estate Values: Indexes of the average value per acre of land and buildings . . .' as listed for this State. The formula to determine the applicable percentage factor is the index of the year of change less the index of the base year with the resulting amount being divided by the index of the base year and rounded to the nearest whole number. For purposes of the formula, the base year is the last year in which values were adjusted under this item.
    (3) Agricultural real property does not come within the provisions of this section unless the owners of the real property or their agents make a written application therefor on or before May first of the first tax year in which the special assessment is claimed. The application for the special assessment must be made to the assessor of the county in which the agricultural real property is located, on forms provided by the county and approved by the department and a failure to apply constitutes a waiver of the special assessment for that year. The governing body may extend the time for filing upon a showing satisfactory to it that the person had reasonable cause for not filing on or before May first. No additional annual filing is required while the use classification of the property is unchanged. The owner shall notify the assessor within six months of a change in use. For failure to notify the assessor of a change in use, in addition to any other penalties provided by law, a penalty of ten percent and interest at the rate of one-half of one percent a month must be paid on the difference between the amount that was paid and the amount that should have been paid, but not less than thirty dollars nor more than the current year's taxes.
    (4) When real property which is in agricultural use and is being valued, assessed, and taxed under the provisions of this article, is applied to a use other than agricultural, it is subject to additional taxes, hereinafter referred to as roll-back taxes, in an amount equal to the difference, if any, between the taxes paid or payable on the basis of the valuation and the assessment authorized hereunder and the taxes that would have been paid or payable had the real property been valued, assessed, and taxed as other real property in the taxing district, in the current tax year (the year of change in use) and each of the five tax years immediately preceding in which the real property was valued, assessed, and taxed as herein provided. If in the tax year in which a change in use of the real property occurs the real property was not valued, assessed, and taxed under this article, then the real property is subject to roll-back taxes for each of the five tax years immediately preceding in which the real property was valued, assessed, and taxed hereunder. In determining the amounts of the roll-back taxes chargeable on real property which has undergone a change in use, the assessor shall for each of the roll-back tax years involved ascertain:
      (A) the fair market value of such real property under the valuation standard applicable to other real property in the same classification;
      (B) the amount of the real property assessment for the particular tax year by multiplying such fair market value by the appropriate assessment ratio provided in this article;
      (C) the amount of the additional assessment on the real property for the particular tax year by deducting the amount of the actual assessment on the real property for that year from the amount of the real property assessment determined under (B) of this section;
      (D) the amount of the rollback for that tax year by multiplying the amount of the additional assessment determined under (C) of this section by the property tax rate of the taxing district applicable for that tax year.
  (e) All other real property not herein provided for shall be taxed on an assessment equal to six percent of the fair market value of such property.
  (f) Except as specifically provided by law all other personal property shall be taxed on an assessment of ten and one-half percent of fair market value of such property except that commercial fishing boats shall be taxed on an assessment of five percent of fair market value. As used in this item `commercial fishing boats' shall mean boats licensed by the Department of Natural Resources which are used exclusively for commercial fishing, shrimping or crabbing.
  (g) All real and personal property owned by or leased to companies primarily engaged in the transportation for hire of persons or property and used by such companies in the conduct of such business and required by law to be assessed by the department shall be taxed on an assessment equal to nine and one-half percent of the fair market value of such property.
  The department shall apply an equalization factor to real and personal property owned by or leased to transportation companies for hire as mandated by federal legislation.
  Notwithstanding any other provision of this article, on June 3, 1975, if it is found that there is a variation between the ratios being used and those stated in this section, the county may provide for a gradual transition to the ratios as herein provided for over a period not to exceed seven years; provided, however, that all property within a particular classification shall be assessed at the same ratio, provided, further, however, that all property enumerated in subsection (a) shall be assessed at the ratio provided in such subsection and the property enumerated in subsections (b), (c), (d), (e), (f), and (g) shall be increased or decreased to the ratios set forth in this article by a change in the ratio of not less than one-half of one percent per year nor more than one percent per year. Provided, however, that notwithstanding the provisions of this section, a county may, at its discretion, immediately implement the assessment ratios contained in subsections (b), (c), (d), (e), and (f). Provided, however, that livestock shall not be subject to ad valorem taxation unless such livestock is physically located within the State for a period in excess of nine months. Provided, that this section shall not apply to farm animals and farm equipment in use on a farm in those counties which do not tax such property as of June 3, 1975.
  Provided, however, all agricultural or forest land within easements granted to public bodies, agencies, railroads, or utilities for rights of way of thirty feet in width or greater shall be assessed at the same cropland value per acre as soil class 7 in schedule 1 of R 117-126 of the State Department of Revenue and Taxation. In order to receive such assessment the landowner must apply to the tax assessor of the county where the easement is located, with documentation of the existence, location, and amount of acreage contained in the easement."

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SECTION 220. Section 12-43-280(B) of the 1976 Code is amended to read:

  "(B) The Department of Revenue and Taxation shall review ad valorem tax collections in each county for reassessment years to insure compliance with the limitation imposed by this section. The department shall promptly notify the governing body of the county if the limit has been exceeded and the total amount of any increased tax collections resulting solely from the program of equalization and reassessment. The governing body of the county shall immediately transfer that total amount to a separate, segregated fund, which must be used to roll back the tax millage in the following year."

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SECTION 221. Section 12-43-300 of the 1976 Code is amended to read:
  "Section 12-43-300. (A) Whenever the market value estimate of any property is fixed by the assessor at a sum greater by one thousand dollars or more than the amount returned by the owner or his agent, or whenever any property is valued and assessed for taxation which has not been returned or assessed previously, the assessor shall, on or before July first, or as soon thereafter as may be practicable, in the year in which the valuation and assessment is made give written notice thereof to the owner of the property or his agent. In reassessment years, the written reassessment notice to owners or agents must be given by July first. If there is no timely written notice, the prior year's assessed value must be the basis for assessment for the current taxable year. The notice must include the prior market value, the total market value estimate, the value estimate if applicable, the assessment ratio, the total new assessment, the percentage changes over the prior market value, if there is no change in use or physical characteristics of the property, number of acres or lots, location of property, tax map, appeal procedure, and other pertinent ownership and legal description data required by the South Carolina Department of Revenue and Taxation. The notice may be served upon the owner or his agent personally or by mailing it to the owner or his agent at his last known place of residence which may be determined from the most recent listing in the applicable telephone directory, Department of Revenue and Taxation Motor Vehicle Registration List, county treasurer's records, or official notice from the property owner or his agent. The owner or his agent, if he objects to the valuation and assessment, shall serve written notice of his objection upon the assessor within thirty days of the date of the mailing of the notice. In years when there is no notice of appraisal because of a less than one thousand dollar change or no change in the appraised or assessed value, the owner or agent has until March first to serve written notice of objection upon the assessor of the appraised or assessed value. In those years, failure to serve written notice of objection by March first constitutes a waiver of the owner's right of appeal for that tax year and the assessor is not required to review any request filed after March first. The assessor shall then schedule a conference with the owner or agent within twenty days of receipt of the notice. If the assessor requests it, the owner, within thirty days after the conference, shall complete and return to the assessor the form as may be approved by the Department of Revenue and Taxation relating to the owner's property and the reasons for his objection. Within thirty days after the conference, or as soon thereafter as practicable, the assessor shall mail written notice of his action upon the objection to the owner. The owner or agent, if still aggrieved by the valuation and assessment, may appeal from the action to the Board of Assessment Appeals by giving written notice of the appeal and the grounds thereof to the assessor within thirty days from the date of the mailing of the notice. The assessor shall notify promptly the Board of Assessment Appeals of the appeal.
  (B) The governing body of the county may by ordinance extend the time for filing an objection to the valuation and assessment of real property resulting from reassessment within a county.
  (C) The Department of Revenue and Taxation shall prescribe a standard reassessment form designed to contain the information required in subsection (A) in a manner that may be understood easily."

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SECTION 222. The first paragraph of Section 12-43-305 of the 1976 Code is amended to read:

  "Upon receipt of written notice of appeal of a property valuation and if it is reasonably expected that the appeal may delay the assessment of the property beyond December thirty-first of the tax year, the assessing officer shall prepare immediately an assessment for the property under appeal based upon eighty percent of the assessed value of the property for the current year. The Department of Revenue and Taxation shall notify the auditor of the property under the jurisdiction of the department which is under appeal. The auditor shall adjust the assessment of property under appeal to eighty percent of the assessed value and enter the adjusted assessment on the tax duplicate and the tax must be paid as in other cases."

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SECTION 223. Section 12-43-320 of the 1976 Code is amended to read:

  "Section 12-43-320. Any or all rules and regulations promulgated by the South Carolina Department of Revenue and Taxation for the implementation of the provisions of Act 208 of 1975 [Sections 12-37-90 to 12-37-110, 12-39-340, 12-39-350, 12-43-210 to 12-43-310, 12-37-970] may be declared null and void by passage of a joint resolution expressing such intention. Such rules and regulations declared null and void will be considered repealed on and after the date of passage of the joint resolution."
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SECTION 224. Section 12-43-335 of the 1976 Code is amended to read:

  "Section 12-43-335. For the purpose of assessing property of merchants and related businesses, as provided by Section 12-37-970, the Department of Revenue and Taxation shall follow the classifications of the Standard Industrial Classification Manual, Bureau of the Budget, 1987 edition, as set out below:
  1. Division C;
  2. Division E, Major Group 48, except numbers 481 and 482;
  3. Division F;
  4. Division G;
  5. Division I, Major Groups 72, 73, 75, 76, 78, and 79."

Name changed

SECTION 225. The third paragraph of Section 12-45-70 of the 1976 Code is amended to read:

  "The county official charged with the collection of taxes shall send a list of the institutions collecting the taxes to the Department of Revenue and Taxation. Each institution shall certify to the department that the taxes have been paid, and the department may accept certification in lieu of the tax receipt given to the taxpayer if that certification contains the information required in Section 12-37-2650."

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SECTION 226. Section 12-47-10 of the 1976 Code is amended to read:

  "Section 12-47-10. The collection of state, county, city, town, and school taxes and taxes voted by townships in aid of railroads when the roads have been completed through such townships shall not be stayed or prevented by any injunction, writ, or order issued by any court or judge. And no writ, order, or process of any kind whatsoever staying or preventing the Department of Revenue and Taxation or any officer of the State charged with a duty in the collection of taxes from taking any steps or proceeding in the collection of any tax, whether such tax is legally due or not, shall in any case be granted by any court or the judge of any court."

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SECTION 227. Section 12-47-60 of the 1976 Code is amended to read:

  "Section 12-47-60. With respect to taxes and license fees administered by the South Carolina Department of Revenue and Taxation, whenever any amount of taxes, license fees, penalties, and interest are recovered by successful litigation in the courts of this State, such amounts recovered shall bear interest at the rate of one-half of one percent per month from the date such taxes, license fees, penalties and interest were paid to the date the order for refund or credit was issued, and such interest shall be paid in the same manner and receive the same preference as the amounts recovered."

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SECTION 228. Section 12-49-90 of the 1976 Code is amended to read:

  "Section 12-49-90. The courts of this State shall recognize and enforce liabilities for taxation lawfully imposed by other states which extend like comity to this State. The South Carolina Department of Revenue and Taxation, with the assistance of the Attorney General, is hereby empowered to bring suit in the courts of other states to collect taxes legally due this State. The officials of other states which extend a like comity to this State are empowered to sue for the collection of such taxes in the courts of this State. A certificate by the Secretary of State that such officers have authority to collect the tax shall be conclusive evidence of such authority."

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SECTION 229. Section 12-49-271 of the 1976 Code is amended to read:

  "Section 12-49-271. When the sheriff receives from the county treasurer a list of delinquent taxpayers and the list includes mobile homes and modular homes upon which to levy, the sheriff shall forward to the Department of Revenue and Taxation a form substantially as set out below requesting the name and address of all lienholders shown on the Certificate of Title. The sheriff shall not advertise the sale of property without a return of this form:
    `To the Department of Revenue and Taxation:
  I have been instructed by the County Treasurer to levy and sell the following personal property:
  Please provide me with the lienholders' names and addresses as shown on the Certificate of Title:
NAME:
ADDRESS:
DESCRIPTION OF COLLATERAL:
I.D. NUMBER:
LIENHOLDER:
LIENHOLDERS' ADDRESS:'"

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SECTION 230. The last paragraph of Section 12-49-290 of the 1976 Code is amended to read:

  "The right, interest, and security of any lienholder who has filed his security interest with the Department of Revenue and Taxation and which security interest is shown on the Certificate of Title shall in no way be affected by a tax sale made pursuant to this chapter unless the provisions of Section 12-49-225 are complied with."

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SECTION 231. Section 12-51-135 of the 1976 Code is amended to read:

  "Section 12-51-135. If a warrant, which has been filed with the clerk of court in any county, is determined by the Department of Revenue and Taxation to have been issued and filed in error, the clerk of court, upon notification by the Department of Revenue and Taxation, must remove the warrant from its book."

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SECTION 232. Section 12-53-10 of the 1976 Code is amended to read:

  "Section 12-53-10. All the powers and duties now imposed or conferred by law upon sheriffs or tax collectors of any county in this State with respect to the collection of any amounts due the State Department of Revenue and Taxation, are hereby imposed or conferred upon the department, or its duly authorized representatives. Such portions of the law as have to do with the collection of unpaid taxes, penalties, interest, or costs, and the attachment, levy, and sale of properties for the purpose of enforcing the payment of such amounts which may be due the department, are hereby imposed or conferred upon the department, or its duly authorized representatives. The department, or its duly authorized representatives, shall in all respects and with like effect proceed upon the property and rights to property, both real and personal, as is now provided by law with respect to sheriffs or tax collectors."

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SECTION 233. Section 12-53-210 of the 1976 Code is amended to read:

  "Section 12-53-210. If the South Carolina Department of Revenue and Taxation finds or in its opinion has reason to believe that the assessment and collection of any tax or license fee or income taxes withheld or any interest or penalty pertaining thereto, for any year, current or past, will be jeopardized in whole or in part by delay, the Department of Revenue and Taxation may mail or issue a notice of such finding to the taxpayer, together with a demand for immediate payment of the tax or license or income taxes withheld, declared to be in jeopardy, including interest, penalties and additions thereto. In the case of a tax or license for a current period, the department may declare the taxable period of the taxpayer or licensee immediately terminated and shall cause notice of such finding and declaration to be mailed or issued to the taxpayer, together with a demand for immediate payment of the tax based on the period declared terminated, and such tax shall be immediately due and payable whether or not the time otherwise allowed by law for filing a return and paying the tax has expired. Any such assessment provided for in this section shall be immediately due and payable. If the assessment is not paid upon demand of the department, the department shall forthwith issue a warrant for distraint against the property, real and personal, of the taxpayer, which shall be collected in the same manner and with like effect as provided under the terms of Sections 12-53-10 to 12-53-60."

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SECTION 234. Section 12-53-220 of the 1976 Code is amended to read:

  "Section 12-53-220. When a jeopardy assessment has been made pursuant to Section 12-53-210, the collection of the whole or any amount of such assessment may be stayed by filing with the Department of Revenue and Taxation, within such time as may be fixed by regulations prescribed by the department, a bond in an amount as to which a stay is desired, conditioned for the payment of the amount hereinafter specified at the time when such tax would be due if such tax is not due at the time of the making of such jeopardy assessment, or if such tax is due or overdue at the time of the making of such jeopardy assessment, at such time as may be fixed by such regulations. A bond as contemplated in this article shall be in the form of a surety bond issued by a surety company licensed to do business in South Carolina by the insurance department of this State, or cash which shall not bear interest, or negotiable securities subject to the approval of the State Treasurer. The bond in all instances would be conditioned upon the payment of the full amount of the assessment together with applicable interest, penalties and costs of collection."

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SECTION 235. Section 12-54-10 of the 1976 Code is amended to read:

  "Section 12-54-10. The word `person' or `taxpayer', for the purpose of this chapter, unless otherwise required by the text, includes any individual, firm, partnership, association, corporation, receiver, trustee, fiduciary, or any other group or combination acting as a unit and the State or any agency or instrumentality, authority, or political subdivision thereof, including municipalities. `Commission' or `Department' means the South Carolina Department of Revenue and Taxation."

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SECTION 236. Section 12-54-230 of the 1976 Code is amended to read:

  "Section 12-54-230. The Employment Security Commission shall allow the South Carolina Department of Revenue and Taxation access to the information contained in the Employer's Quarterly Report and any by-product of the report. The report or information extracted from the report is not subject to provisions of Chapter 4 of Title 30, the Freedom of Information Act."

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SECTION 237. Section 12-54-240(B)(7), (11), and (12) of the 1976 Code are amended to read:

  "(7) submission of taxpayer names, home addresses, and social security numbers to the State Election Commission and Department of Revenue and Taxation to effect the purposes of Section 14-7-130.
  (11) disclosure of information contained on any return to the South Carolina Employment Security Commission, Department of Revenue and Taxation, or to the Department of the Treasury, Alcohol, Tobacco and Firearms Division.
  (12) disclosure of whether a resident or nonresident tax return was filed by any particular taxpayer to the South Carolina Department of Natural Resources."

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SECTION 238. Section 12-54-250 of the 1976 Code is amended to read:

  "Section 12-54-250. (A) The South Carolina Department of Revenue and Taxation may require, consistent with the cash management policies of the State Treasurer, that any person owing twenty thousand dollars or more in connection with any return, report, or other document to be filed with the department shall pay the tax liability to the State no later than the date the payment is required by law to be made in funds which are available immediately to the State on the date of payment. Payment in immediately available funds may be made by any means established by the department, with the approval of the State Treasurer, which insures the availability of those funds to the State on the date of payment. Evidence of the payment must be furnished to the department on or before the due date of the tax as provided by law. Failure to make timely payment in immediately available funds or failure to provide evidence of payment in a timely manner subjects the taxpayer to penalties and interest as provided by law for delinquent or deficient tax payments.
  (B) The department by rule may prescribe alternative periodic filing and payment dates later than the dates otherwise provided by law for any taxes collected by the department in those instances where it is considered to be in the best interest of the State. An alternative date may not be later than the last day of the month in which the tax was otherwise due.
  (C) The department may prescribe rules and the State Treasurer banking procedures necessary for the administration of the provisions of this section.
  (D) Payment by immediately available funds and filing of the return are considered simultaneous acts with respect to penalties and interest for failure to file and failure to pay. Penalties and interest must be calculated based on the later of the return postmark date or payment date."

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SECTION 239. Section 12-54-260 of the 1976 Code is amended to read:

  "Section 12-54-260. (A) As used in this section:
    (1) `Delinquent taxes' mean state taxes including penalty, interest, and costs for which a warrant for distraint has been issued and filed by the department.
    (2) `Commission' or `Department' means the South Carolina Department of Revenue and Taxation.
    (3) `Payment owed by the State' means amounts for which the Comptroller General is responsible for payment and which result from goods or services rendered or to be rendered to the State or its agencies or political subdivisions.
    (4) `Collecting agency' means the Comptroller General.
  (B) The department may collect delinquent taxes by means of a setoff procedure as provided in this section.
  (C) The department shall provide to the Comptroller General the names, social security numbers, or federal employer identification numbers, or other identifying information considered necessary by the Comptroller General to determine whether a payment owed by the State to a taxpayer is a payment due a taxpayer owing delinquent taxes.
  (D) Based solely on the information furnished by the department, the Comptroller General shall determine if a payment owed by the State is payable to a taxpayer owing delinquent taxes and on this determination he shall remit the payment to the department. The department shall promptly notify the delinquent taxpayer of the payment. Remitting of the payment to the department terminates the Comptroller General's responsibilities under this section, except as otherwise provided by law. The department's notice to the taxpayer must:
    (1) be in writing;
    (2) specify the amount paid to the department;
    (3) state the total amount the department determines to be due from the taxpayer;
    (4) specify the name, address, and telephone number of an employee of the department whom the taxpayer can contact to discuss the delinquent tax liability.
  (E) Reviews of setoffs are with the department and information furnished by the department to the Comptroller General is considered correct and reliable for use by the Comptroller General in applying the setoff procedure."

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SECTION 240. Section 12-54-420(2) of the 1976 Code is amended to read:

  "(2) `Commission' or `Department' means the South Carolina Department of Revenue and Taxation."

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SECTION 241. Section 12-54-430(C) and (D) of the 1976 Code are amended to read:

  "(C) All claimant agencies, whenever possible, shall obtain the full name, social security number, address, and any other identifying information, required by regulations promulgated by the department for implementation of this article, from any person for whom the agencies provide any service or transact any business and who the claimant agencies can foresee may become a debtor under the terms of this article.
  (D) Upon request from a claimant agency, the department shall furnish the claimant agency the home address, corrected Social Security number or additional Social Security number of any taxpayer whose name has been submitted to the department for collection of a delinquent debt."

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SECTION 242. Section 12-54-720 of the 1976 Code is amended to read:

  "Section 12-54-720. The South Carolina Department of Revenue and Taxation shall administer this article."

Department of Commerce established

SECTION 243. Chapter 1, Title 13 of the 1976 Code is amended to read:

"Article 1

Department of Commerce

  Section 13-1-10. (A) The Department of Commerce is established as an administrative agency of state government which is comprised of a Division of State Development, a Division of Savannah Valley Development, a Division of Aeronautics, a Division of Public Railways, and an Advisory Coordinating Council for Economic Development. Each division of the Department of Commerce shall have such functions and powers as provided for by law.
  (B) All functions, powers, and duties provided by law to the State Development Board, the Savannah Valley Authority, the South Carolina Aeronautics Commission, the South Carolina Public Railways Commission, and the Coordinating Council for Economic Development, its officers or agencies, are hereby transferred to the Department of Commerce together with all records, property, personnel, and unexpended appropriations. All rules, regulations, standards, orders, or other actions of these entities shall remain in effect unless specifically changed or voided by the department in accordance with the Administrative Procedures Act.

  Section 13-1-20. The Department of Commerce shall conduct an adequate statewide program for the stimulation of economic activity to develop the potentialities of the State; manage the business and affairs of the Savannah Valley Development; develop state public airports and an air transportation system that is consistent with the needs and desires of the public; develop the state public railway system for the efficient and economical movement of freight, goods, and other merchandise; and enhance the economic growth and development of the State through strategic planning and coordinating activities.
  Section 13-1-30. (A) The Department of Commerce shall be headed by a director, who shall be appointed by the Governor upon the advice and consent of the Senate. The director shall be vested with the duty and authority to oversee, manage, and control the operation, administration, and organization of the department subject only to the laws of this State and the United States. He shall receive such compensation as may be established under the provisions of Section 8-11-160 and for which funds have been authorized in the general appropriation act. He is subject to removal by the Governor as provided in Section 1-3-240.
  (B) The Director of the Department of Commerce may appoint a deputy director for each division of the department. Each deputy director shall serve at the pleasure of the director and shall be responsible to the director for the operation of the programs outlined by the director.

  Section 13-1-40. At the discretion of the Director of the Department of Commerce an advisory council or councils may be appointed to advise with respect to each broad function which may be the responsibility of the director. Each advisory council shall consist of a group of not more than nine members, consisting of state and local governmental officials and of private individuals of outstanding ability in fields of enterprise related to the particular function with respect to which its advice is desired. The members shall receive no salary or per diem but may be compensated for all actual expenses incurred in the performance of their duties. The members shall serve for terms to be established by the director and may be removed at the pleasure of the director. Governmental officials shall serve on such councils for a period of one year and may be reappointed for successive terms by the director; provided, that their terms shall end with the termination of their office as officials.

  Section 13-1-50. The department shall be audited by a certified public accountant or firm of certified public accountants once each year to be designated by the State Auditor. The designated accountant or firm of accountants shall issue audited financial statements in accordance with generally accepted accounting principles, and such financial statements shall be made available annually by October fifteenth to the General Assembly. The costs and expenses of the audit must be paid by the department out of its funds.

  Section 13-1-60. If a term or provision of a section of this chapter is found to be illegal or unenforceable, the remainder of this chapter nonetheless remains in full force and effect and the illegal or unenforceable term or provision is deleted and severed from this chapter."

Division of State Development established

SECTION 244. Chapter 1, Title 13 of the 1976 Code is amended by adding:

"Article 3

Division of State Development

  Section 13-1-310. The following terms, when used in this article, shall have the following meanings unless the context clearly requires otherwise:
  (1) `Agency' means any state officer, department, board, commission, committee, institution, bureau, division or other person or functional group that is authorized to exercise or that does exercise any executive or administrative function of government in the State; when the term `local agency' is used, it shall be construed to mean local political subdivisions of the State; when the term `federal agency' is used, it shall be construed to mean any agency of the government of the United States of America;
  (2) `Deputy director' means the Deputy Director for the Division of State Development;
  (3) `Division' means the Division of State Development;
  (4) `Director' means the Director of the Department of Commerce; and
  (5) `State' means the State of South Carolina.

  Section 13-1-320. The objectives of the division are to:
  (1) conserve, restore, and develop the natural and physical, the human and social, and the economic and productive resources of the State;
  (2) promote coordination of the functions and activities of state agencies and act as the official state liaison office between the state, federal, and local planning, research, and development agencies;
  (3) promote a system of transportation for the State through development and expansion of the highway, railroad, port, waterway, and airport systems;
  (4) promote and correlate state and local activity in planning public works projects;
  (5) promote public interest in the development of the State through cooperation with public agencies, private enterprises, and charitable and social institutions;
  (6) promote and encourage industrial development, private business and commercial enterprise, agricultural production, transportation, and the utilization and investment of capital within the State;
  (7) assist the development of existing state and interstate trade, commerce, and markets for South Carolina goods and in the removal of barriers to the industrial, commercial, and agricultural development of the State;
  (8) assist in ensuring stability in employment, increase the opportunities for employment of the citizens of the State, and devise ways and means to raise the living standards of the people of the State;
  (9) advance the general welfare of the people.

  Section 13-1-330. The division shall consist of a bureau of research, a bureau of planning, a bureau of development, and such other bureaus as the director may establish. Each bureau may be headed by a bureau chief selected on the basis of his technical and administrative qualifications and experience to perform the duties required by his position. The chief for the bureau of research shall be a person thoroughly familiar with the principles of, and experienced in, the methods and techniques of research and economics. The chief for the bureau of planning shall be an industrial engineer experienced in that type of work. The chief for the bureau of development shall be a person thoroughly familiar with the principles of, and experienced in, the methods and techniques of developing a program of advertising and salesmanship.

  Section 13-1-340. The director is vested with duties, powers, and responsibilities involved in accomplishing the division's objectives outlined in this article within the appropriations provided by the General Assembly. The director may:
  (1) advise and make recommendations to the Governor and the General Assembly on matters concerning the division's objectives;
  (2) cooperate with the operating agencies of the State in the development of plans;
  (3) have access to the records and studies of each state agency pertaining to the division's objectives;
  (4) conduct studies on his own initiative pertaining to the division's objectives and others at the request of the Governor, the General Assembly, or state or local agencies;
  (5) make special studies on area problems or specific subjects, establish local agencies, and furnish staff or financial aid;
  (6) stimulate and encourage local, state, and federal governmental agencies with similar and related objectives and purposes and cooperate with local, regional, and federal planning and development programs;
  (7) publish and distribute the division's findings through written reports, brochures, magazine and newspaper articles, and other appropriate forms and use the radio, periodicals, and other recognized forms of advertising, personal interviews, exhibits, and displays in order that governmental agencies, corporations, and individual citizens may become acquainted with the development program of the State;
  (8) advertise the advantages of the State for industrial, agricultural, and commercial development by paid publicity;
  (9) provide information to and make contact with private business enterprises and local, state, and federal governmental agencies to acquaint them with industrial, agricultural, and commercial opportunities in the State and encourage the establishment of new or the expansion of existing industries and enterprises;
  (10) provide advice upon request by local, state, and federal agencies, private citizens, and business and commercial enterprises upon matters of economic development, industrial and business expansion, and agricultural activity upon which his knowledge, sources of information, and findings and decisions qualify him to speak;
  (11) accept gifts, grants, funds, and property to accomplish the division's objectives, administer and disburse gifts, grants, and funds, and dispose of property to counties, municipalities, and local agencies performing a public service or function which may disburse the gifts, grants, and funds or make the property available to eligible participants in a program established to perform and implement the public service or function subject to the approval of the Budget and Control Board.

  Section 13-1-350. The former State Planning Board, State Board of Housing, Building Council of South Carolina, South Carolina Commerce Development Board, South Carolina Intra-Coastal Waterway Commission, South Carolina Board for Promotion of External Trade, and Natural Resources Commission and their successor the State Development Board having been abolished, the director shall have the following additional duties formerly imposed on such boards, commissions and councils:
  (1) State Planning Board:
    (a) to confer and cooperate with the executive, legislative and planning authorities of the United States and of neighboring states and of subdivisions thereof;
    (b) to promote interest in the understanding of the problems of state planning; and
    (c) to cooperate with the United States and any of its agencies in the planning, conservation, utilization and development of state resources and in the planning of its public works programs and to act, when so designated, as an agency of the United States, or of any agency thereof.
  (2) State Board of Housing: to perform the duties imposed upon him under Title 31 of this Code;
  (3) Building Council of South Carolina: to promulgate and recommend to the General Assembly of the State a building code for adoption;
  (4) Commerce Development Board:
    (a) to purchase, hold, use, lease, mortgage, sell, transfer, convey, assign, pledge or otherwise to acquire, encumber or dispose of any property, real, personal or mixed, or any estate or interest therein, including, but without limiting the foregoing, stock in any corporation;
    (b) to employ attorneys upon such reasonable basis of compensation as may be agreed upon, or as he may determine, commensurate with the services rendered or to be rendered to the end that no excessive or unreasonable fees or compensation shall be allowed;
    (c) to build, acquire, construct and maintain power houses and any and all structures, ways and means necessary, useful or customarily used and employed in the construction of highways, in the construction and operation of railroads and in the manufacture, generation and distribution of electricity and any and all other kinds of power, including power transmission lines, poles, telephone and telegraph lines, substations, transformers and generally all things used or useful in the manufacture, distribution and purchase of power and electricity; provided, that electric current produced shall be used by the director and that none of it shall be sold;
    (d) to acquire or to build, construct, equip, maintain and operate one or more railroads with any motive power, one or more highways or other methods, means or ways of commerce or transportation or of communication, telegraph or telephone lines, electric lines, pipe lines, commissaries, houses, camps, lakes, fills, dams, reservoirs, ditches, drains, roads, tunnels, culverts, bridges, conduits, shops and depots and equipment; provided, that telegraph or telephone lines shall be used by the director and that no telegraph or telephone service shall be sold to the general public;
    (e) to engage in the business of a common carrier of freight or passengers for hire;
    (f) to build, construct, equip, maintain and operate, or cause the same to be done, a railroad or a highway connecting the existing lines of railroad at Walhalla, South Carolina, and at or near Maryville, Tennessee, or as near to such points as practicable and to do every act and thing necessary or proper to accomplish that result and to secure improvement of such existing lines connecting the same with the Atlantic seaboard;
    (g) to transport goods, freight, mail, passengers and intelligence for hire and to fix and collect proper charges therefor;
    (h) to construct or establish parks or playgrounds for the use, benefit, recreation and amusement of the people of this State under such rules and regulations and subject to such charges as it may establish, determine or fix, with all necessary or proper appurtenances, roadways, lakes, reservoirs, pipe lines, wires, buildings or other structures and equipment which it may from time to time deem desirable;
    (i) to take such steps as may be proper to prevent and control soil erosion and floods in the areas served by it;
    (j) to cooperate with the United States to promote the national defense;
    (k) to develop and increase commerce, intrastate, interstate and foreign, by shortening and improving existing routes, by constructing new routes and facilities and by equipping, maintaining and operating or leasing the same, or causing it to be done, by procuring or endeavoring to procure a reduction in freight, passenger, power, light, water, telegraph and telephone rates and tolls and by any other means or method which shall tend so to do and securing to the people of this State the annual saving of large sums and an improvement in their living conditions and general welfare;
    (l) to cooperate with the health authorities in the areas served by it to the end that the public health may be improved and disease and suffering reduced;
    (m) to fix, alter, charge and collect tolls, freight and other charges for the use of the division's facilities or for the services rendered by or for any commodities furnished by it, at rates to be determined by the director, such rates to be at least sufficient to provide for payment of all expenses of the director under this paragraph (4) of this section, the conservation, maintenance and operation of its facilities and properties, the payment of principal and interest on its notes, bonds and other evidences of indebtedness or obligation and to fulfill the terms and provisions of any agreements made with the purchasers or holders of any of the division's notes, bonds or other evidences of indebtedness or obligation;
    (n) to have the power of eminent domain;
    (o) to acquire by purchase, gift, condemnation or in any other manner any lands, waters, water rights, riparian rights, flowage rights, rights of way, easements, licenses, franchises, engineering data, maps, construction plans or estimates or any other property of any kind, real, personal or mixed, necessary or useful in carrying out any of his powers;
    (p) to borrow money, to make and issue negotiable notes, bonds and other evidences of indebtedness and to secure the payment of such obligations or any part thereof by mortgage, lien, pledge or deed of trust on any or all of the division's property, contracts, franchises or revenues and to make such agreements with the purchasers or holders of such notes, bonds or other evidences of indebtedness or with others in connection with any such notes, bonds or other evidences of indebtedness, whether issued or to be issued, as the director shall deem advisable and in general to provide for the security for such notes, bonds or other evidences of indebtedness and the rights of the holders thereof;
    (q) to endorse or otherwise to guarantee the obligations of any corporation all of the voting stock of which the division may own or acquire;
    (r) to mortgage, pledge, hypothecate or otherwise to encumber any or all of the division's property, real, personal or mixed, facilities or revenues as security for notes, bonds, evidences of indebtedness or other obligations;
    (s) to borrow money from the United States or any corporation or agency created, designed or established by the United States;
    (t) to exercise the powers and to do the things authorized by paragraph (4) of this section either by and with his own efforts and resources or to procure or to cause the same to be done by the United States or any agency or instrumentality thereof, by any one or more of the states affected or their political subdivisions, agencies or instrumentalities, by any private corporation, association or individual, contractor or otherwise or by the joint efforts of any or all of them or by cooperation with any or all of them, having in mind that the primary objective to be achieved is the construction, maintenance and operation of the railroad, highways, lines of communication and other facilities authorized by this paragraph, regardless of the particular method, manner or agency by or through which the same may be done, and to do any and all acts and things and to make any and all agreements or contracts necessary thereunto, including also the power to lease the whole or any part of the division's facilities or to contract or agree upon a particular method, manner or agency of or for the maintenance or operation of such facilities;
    (u) to make, alter and repeal reasonable rules and regulations governing the use of the division's facilities and to fix and collect the charges, tolls, prices or rate of compensation it shall receive for the same, but nothing herein contained shall prevent the director, when in his opinion the public interest will best be served thereby and when the division's financial condition will permit, from allowing the use of its parks, places of amusement and recreation, roads, highways and the like, to be designated by the director from time to time, free of charge or at a merely nominal charge for the benefit of the people of this State;
    (v) to sell or otherwise to dispose of any surplus property which the division may acquire and which the director may decide is not needed; and
    (w) to have all additional powers, not inconsistent with this article, that are vested by law in common carriers of freight, passengers, electricity and intelligence for hire and in corporations generally.
  (5) South Carolina Intra-Coastal Waterway Commission: to perform the duties imposed upon it by Chapter 5 of Title 3 of this Code;
  (6) Board for Promotion of External Trade:
    (a) to compile surveys showing the nature and extent of the natural resources and of the manufactured products and raw materials found or produced in the State which may move in domestic or foreign commerce; and
    (b) to determine the areas throughout the world where commodities and products of this State may find advantageous markets and secure perfection of arrangements between citizens of this State and producers and consumers in other areas whereby there may be carried on greater interchange of commerce.
  (7) Natural Resources Commission:
    (a) to select a label, have it copyrighted and registered in the United States copyright office, which label shall in the judgment of the director be used to advertise the chemical and other contents of food products grown in South Carolina or to advertise other articles;
    (b) to promulgate and register the conditions upon which such label may be used and fix the charges for such use; and
    (c) to promulgate information furnished by the South Carolina Research Laboratories and other educational institutions and such other information as has bearing upon value of South Carolina products.

  Section 13-1-360. Confidential information submitted to any agency as required by law shall not be published in any manner which will directly or indirectly reflect or damage the reputation or business activity of any individual or corporation concerned.

  Section 13-1-370. The director may, in his discretion establish an advisory committee of the Division of State Development (hereafter, in this section, the `advisory committee') which if established, would be comprised of twenty-four citizens of the State to be appointed by the Governor upon the advice and consent of the Senate. One member must be appointed from each of the following two-county areas:
  1. Richland and Kershaw counties;
  2. Spartanburg and Cherokee counties;
  3. Laurens and Newberry counties;
  4. Abbeville and Greenwood counties;
  5. Berkeley and Charleston counties;
  6. Oconee and Anderson counties;
  7. Florence and Marion counties;
  8. Greenville and Pickens counties;
  9. Horry and Georgetown counties;
  10. Union and York counties;
  11. Lee and Darlington counties;
  12. Marlboro and Dillon counties;
  13. Chester and Fairfield counties;
  14. Lancaster and Chesterfield counties;
  15. Sumter and Calhoun counties;
  16. Clarendon and Williamsburg counties;
  17. Beaufort and Jasper counties;
  18. Dorchester and Colleton counties;
  19. Orangeburg and Bamberg counties;
  20. Allendale and Hampton counties;
  21. Aiken and Barnwell counties;
  22. Lexington and Saluda counties;
  23. Edgefield and McCormick counties.
  The Governor shall appoint one member from the State at large who shall serve as chairman. The terms of the members are for a period of four years and until their successors are appointed and qualify. Terms for all members commence on July first of the year of appointment. Of the members initially appointed from the two-county areas, the Governor shall appoint one member from each of the following counties for a term of two years: Kershaw, Cherokee, Newberry, Greenwood, Charleston, Anderson, Marion, Pickens, Georgetown, York, Darlington, and Dillon, and the Governor shall appoint one member from each of the following counties for a term of four years: Fairfield, Chesterfield, Calhoun, Williamsburg, Jasper, Colleton, Bamberg, Hampton, Barnwell, Lexington, and McCormick. Upon the expiration of the initial terms of the members appointed from the two-county areas, the Governor shall rotate the appointment of these members between the counties in each of the two-county areas. The advisory committee may select other officers from its membership to serve for terms designated by it. Vacancies must be filled in the manner of the original appointments for the unexpired portions of the terms. The members of the advisory committee must be paid the usual mileage and subsistence as is provided by law for members of state boards, commissions, and committees. The advisory committee must meet four times a year, and may meet more often if the chairman considers it necessary or if ten members request the chairman to call a meeting, and the director approves such additional meetings. The advisory committee may not meet at any location outside the boundaries of South Carolina. The advisory committee shall advise and consult with the director on the following matters:
  (a) the condition of and prospects for economic development in the State--particularly in the rural areas;
  (b) the fostering of a close working relationship between the primarily rural, or primarily agricultural, counties of the State and the counties which are primarily nonrural or nonagricultural;
  (c) the identification of problems facing smaller rural counties and of solutions to those problems;
  (d) having input to the director regarding industrial prospects throughout the State; and
  (e) any other matter which the director considers necessary to assist the director, in the way of consultation or advice, in carrying out any of the director's duties or functions under this article.
  Section 13-1-380. (A) Notwithstanding the provisions of Section 13-1-40, there is established within the division a Recycling Market Development Advisory Council to assist in the development of markets for recovered materials and products with recycled content in this State.
  (B) The members of the advisory council shall be appointed not later than ninety days after this article is effective.
  (C) The advisory council shall consist of fourteen members to be appointed by the Governor to include:
    (1) one member shall represent the division;
    (2) one member shall represent county governments;
    (3) one member shall represent municipalities;
    (4) one member shall represent the solid waste collection and disposal industry;
    (5) one member shall represent the existing recycling industry;
    (6) one member shall represent the glass industry;
    (7) one member shall represent the paper industry;
    (8) one member shall represent the aluminum industry;
    (9) one member shall represent the plastics industry;
    (10) one member shall represent the tire industry;
    (11) one member shall represent the general public;
    (12) one member shall represent the oil industry;
    (13) one member shall represent the scrap metal recycling industry; and
    (14) one member shall represent higher education research institutions.
  (D) Each member of the advisory council shall serve a two-year term beginning on the date of his appointment and shall serve until a successor is appointed and qualified. Members shall serve at the pleasure of their appointing authority and shall receive the usual mileage, per diem, and subsistence provided by law for members of boards, committees, and commissions. Until sufficient funds have accumulated in the Solid Waste Management Trust Fund to cover the advisory council's expenses, the appointing authorities shall provide the mileage, per diem, and subsistence for their respective appointees. Any other expenses of the advisory council shall be shared equally by the appointing authorities until the trust fund has sufficient funds to cover the expenses.
  (E) The chairman shall be designated by the Director of the Department of Commerce and the advisory council shall select its own vice-chairman. The advisory council shall adopt operating procedures and shall meet on the call of the chairman or of a majority of the members. Members shall promulgate regulations concerning meeting attendance. A majority of the members shall constitute a quorum to do business. The division shall provide the necessary staff and administrative facilities and services to the advisory council. The Department of Health and Environmental Control shall provide technical assistance to the council at the request of the chairman or of the vice-chairman, or by majority vote of the advisory council.
  (F) Not later than fifteen months after this article is effective, the council shall provide to the Governor and to the General Assembly an initial report which shall include, at a minimum, the following:
    (1) a description and analysis of this state's existing recycling industry;
    (2) an analysis of the projected long-term capacity of existing markets to absorb materials generated by source separation, recovery, or recycling programs;
    (3) an analysis of potential markets in this State, in other states, or in foreign countries for recovered materials and products with recycled content from this State;
    (4) an analysis of institutional, economic, and technical barriers to the use of recovered materials and products with recycled content;
    (5) recommendations for actions which may be taken to increase demand for source separated, recovered, or recycled materials or products;
    (6) recommendations for actions which may be taken to increase the incentives for private individuals and for business and industry to consume or export recovered materials and products with recycled content;
    (7) an analysis of the compatibility of recycling with solid waste treatment or disposal methods and recommendations on the feasibility of the implementation of mechanisms for cooperative marketing of recyclable materials;
    (8) recommendations on categories of materials which should be recovered, given existing and potential markets for such materials;
    (9) recommendations for a public education program to be implemented by the Office of Solid Waste Reduction and Recycling within the department to provide information to the public and to business and industry on the benefits of source separation, recovery, and recycling and on the availability of recovered materials or products with recycled content;
    (10) a study of methods of and cost effectiveness of source separation and recycling of recovered materials;
    (11) a study of packaging reduction; and
    (12) a study of the design of products at the primary stage of development to promote recyclability.
  (G) Following its initial report, the council shall submit to the Governor and to the General Assembly by the end of each calendar year an annual report on recycling activities in this State which shall, at a minimum, include the following:
    (1) any revisions which the council determines are necessary to its initial report;
    (2) a description and analysis of the amounts and types of solid waste materials recovered or recycled in this State during the preceding year;
    (3) recommendations regarding materials which should be added to or deleted from source separation, recovery, and recycling programs; and
    (4) any other recommendations, including tax incentives, to facilitate the development of markets for recovered materials or products in this State."

Division of Savannah Valley Development established

SECTION 245. Chapter 1, Title 13 of the 1976 Code is amended by adding:

"Article 5

Division of Savannah Valley Development

  Section 13-1-610. The following terms, when used in this article, shall have the following meanings unless the context clearly requires otherwise:
  (1) `Deputy director' means the Deputy Director for the Division of Savannah Valley Development;
  (2) `Division' means the Division of Savannah Valley Development; and
  (3) `Director' means the Director of the Department of Commerce.

  Section 13-1-620. The director has all the rights and powers necessary or convenient to manage the business and affairs of the division and to take action as he considers advisable, necessary, or convenient in carrying out his powers, including, but not limited to, the following rights and powers to:
  (a) have perpetual succession;
  (b) sue and be sued;
  (c) adopt, use, and alter a corporate seal;
  (d) adopt and amend bylaws for regulation of the division's affairs consistent with this article;
  (e) notwithstanding any provision of law or regulation to the contrary, and in accordance with the division's own procurement procedures and regulations as approved by the Budget and Control Board, acquire, purchase, hold, use, improve, manage, lease, mortgage, pledge, sell, transfer, and dispose of any property, real, personal, or mixed, or any interest in any property, or revenues of the division, including as security for notes, bonds, evidences of indebtedness, or other obligations of the division. Except for the provisions of Sections 11-35-5210 through 11-35-5270, inclusive, in exercising the powers authorized in this article the division is exempt from Title 11, Chapter 35. The director has no power to pledge the credit and the taxing power of the State or any of its political subdivisions;
  (f) receive contributions, donations, and payments and to invest and disburse the division's funds;
  (g) make inquiry into the status of, and plans for, the development of the J. Strom Thurmond project and the Richard B. Russell project by the United States government, by the State of Georgia, or by any other agency or instrumentality;
  (h) encourage, assist, promote, and cooperate in the development of the Savannah River and the streams, canals, or watercourses now or at a later time connected to or flowing into the river and to appear on behalf of the State before any agency, department, or commission of this State, of the United States, or of any other state in furtherance of the development or of any matter connected with the development or related to the development;
  (i) negotiate agreements, accords, or compacts on behalf of and in the name of the State with the State of Georgia or the United States, or both, with any agency, department, or commission of either or both, or with any other state or any agency, department, or commission of the other state, relating to the development of the Savannah River and the development of the streams, canals, or watercourses now or at a later time connected to or flowing into the river, and particularly in reference to joint or concurrent action in the furtherance of agreements, accords, or contracts. Interstate compacts made by the division are subject to approval by concurrent resolution of the General Assembly;
  (j) act as a regional development agency of the State to receive, purchase, hold title to, and to manage any real property in the division's jurisdiction acquired by release of surplus real property, by purchase, by donation, by lease, or by exchange and to develop and promote the development of the land for recreational, transportation, residential, commercial, and industrial purposes, both public and private, and to lease, sublease, or convey title in fee simple to the real property as provided in the bylaws of the division. The division shall retain, carry forward, or expend any proceeds derived from the sale, lease, rental, or other use of real and personal property under the division's exclusive jurisdiction. The proceeds shall only be used in the development and the promotion of the division as provided by this article and for the purposes authorized by this article;
  (k) promulgate regulations governing the use of or doing business on the division's property or facilities, including the adoption of safety standards and insurance coverage or proof of financial responsibility, including, but not limited to, providing for the licensing of persons, firms, or corporations using or doing business on such property or facilities, and for license fees to cover the expense thereof;
  (l) borrow money, make and issue notes, bonds, and other evidences of indebtedness, including refunding and advanced refunding notes and bonds, of the division; to secure the payment of the obligations or any part by mortgage, lien, pledge, or deed of trust on any of its property, contracts, franchises, or revenues, including the proceeds of any refunding and advanced refunding notes, bonds, and other evidences of indebtedness and the investments in which proceeds are invested and the earnings on and income from the investments; to invest its monies, including without limitation its revenues and proceeds of the notes, bonds, or other evidences of indebtedness, in obligations of, or obligations the principal of and interest on which are guaranteed by or are fully secured by contracts with, the United States, in obligations of any agency, instrumentality, or corporation which has been or may at a later time be created by or pursuant to an act of the United States Congress as an agency, instrumentality, or corporation, in direct and general obligations of this State, and in certificates of deposit issued by any bank, trust company, or national banking association; to make agreements with the purchasers or holders of the notes, bonds, or other evidences of indebtedness or with others in connection with any notes, bonds, or other evidences of indebtedness, whether issued or to be issued, as the division considers advisable; and to provide for the security for the notes, bonds, or other evidences of indebtedness and the rights of the holders of the notes, bonds, or other evidences of indebtedness. In the exercise of the powers granted in this section to issue advanced refunding notes, bonds, or other evidences of indebtedness the director may, but is not required to, avail himself of or comply with any of the provisions of Chapter 21 of Title 11. The director, when investing in certificates of deposit, shall invest in certificates of deposit issued by institutions authorized to do business in this State if the institutions offer terms which, in the opinion of the director, are equal to or better than those offered by other institutions;
  (m) loan the proceeds of notes, bonds, or other evidences of indebtedness to a person, corporation, or partnership to construct, acquire, improve, or expand the projects described in Section 13-1-640;
  (n) make contracts, including service contracts with a person, corporation, or partnership, to provide the services provided in Section 13-1-640, and to execute all instruments necessary or convenient for the carrying out of business
  (o) for the acquiring of rights-of-way and property necessary for the accomplishment of its duties and purposes, the division may purchase them by negotiation or may condemn them, and should it elect to exercise the right of eminent domain, condemnation actions must be in the name of the division. The power of eminent domain applies to all property of private persons or corporations and also to property already devoted to public use in Abbeville and McCormick counties;
  (p) employ and dismiss those employees, consultants, and other providers of services he considers necessary for the division and to fix and to pay their compensation. Employees of the division or an entity established pursuant to Section 13-1-790 are not considered state employees except for eligibility for participation in the State Retirement System and the State Health Insurance Group Plans and pursuant to Chapter 78 of Title 15. The provisions of Chapter 11 of Title 8 and Article 5, Chapter 17 of Title 8 do not apply to the division. The division is responsible for complying with the other state and federal laws covering employers. The division may contract with the Division of Human Resources Management of the State Budget and Control Board to establish a comprehensive human resource management program;
  (q) fix, alter, charge, and collect tolls, fees, rents, charges, and assessments for the use of the facilities of or for the services rendered by, the division; these rates must be at least sufficient to provide for payment of all expenses of the division, the conservation, maintenance, and operation of its facilities and properties, the payment of principal and interest on its notes, bonds, and other evidences of indebtedness or obligation, and to fulfill the terms and provisions of any agreements made with the purchasers and holders of these notes, bonds, or other evidences of indebtedness or obligation.

  Section 13-1-630. The director may exercise any of the powers and duties conveyed under Section 13-1-620 in the entire area of a county or portion of a county which borders the Savannah River or is within the Savannah River Basin.

  Section 13-1-640. In furtherance of its purposes, the division may issue revenue bonds, the interest on which may or may not be excludable from gross income for federal income tax purposes, for the purpose of raising funds needed from time to time for the financing or refinancing, in whole or in part, the acquisition, construction, equipment, maintenance, and operation of a facility, building structure, or any other matter or thing which the division is authorized to acquire, construct, equip, maintain, or operate. In connection with the issuance of bonds, the division may enter into an agreement with a company to construct, operate, maintain, and improve a project, and the division may enter into a financing agreement with the company prescribing the terms and conditions of the payments to be made by the company to the division, or its assignee, to meet the payments that become due on bonds.

  Section 13-1-650. Revenue bonds issued under this article for any project described in Section 13-1-640 must be authorized by executive order of the director. The director's executive order may contain provisions which are a part of the contract between the division and the several holders of the bonds as to:
  (a) the custody, security, use, expenditure, or application of the proceeds of the bonds;
  (b) the acquisition, construction, and completion of any project for which the bonds are issued;
  (c) the use, regulation, operation, maintenance, insurance, or disposition of the project for which the bonds are issued, or any restrictions on the exercise of the powers of the division to dispose of or limit or regulate the use of the project;
  (d) the payment of the principal of or interest on the bonds and the sources and methods of payment, the rank or priority of any bonds as to any lien or security, or the acceleration of the maturity of any bonds;
  (e) the use and disposition of the revenues derived or to be derived from the operation of any project;
  (f) the pledging, setting aside, depositing, or entrusting of the revenues from which the bonds are made payable to secure the payment of the principal of and interest on the bonds or the payment of expenses of operation and maintenance of the project;
  (g) the setting aside of revenues, reserves, or sinking funds and the source, custody, security, regulation, and disposition of the revenues, reserves, or sinking funds;
  (h) the determination of the definition of revenues or of the expenses of operation and maintenance of the project for which the bonds are issued;
  (i) the rentals, fees, or other charges derived from the use of the project and the fixing, establishing, collection, and enforcement of the rentals, fees, or other charges, the amount or amounts of revenues to be produced by the rentals, fees, or other charges, and the disposition and application of the amounts charged or collected;
  (j) limitations on the issuance of additional bonds or any other obligations or the incurrence of indebtedness payable from the same revenues from which the bonds are payable;
  (k) rules to ensure the use of the project by the public or private sector to the maximum extent to which the project is capable of serving the public or private sector;
  (l) any other matter or course of conduct which, by recital in the resolution authorizing the bonds, is declared to further secure the payment of the principal of or interest on the bonds.

  Section 13-1-660. The bonds may be issued in one or more series, may bear a date, may mature at a time not exceeding forty years from their respective dates, may bear interest at the rate or rates per annum as approved by the State Budget and Control Board, may be payable in a medium of payment and at a place, may be in a denomination, may be in a form, either coupon or registered, may carry registration privileges, may be subject to terms of redemption before maturity, with or without premium, and may contain terms, covenants, and conditions as the executive order authorizing the issuance of the bonds may provide. The interest rate on bonds issued by the division, the proceeds of which are loaned to a company pursuant to a financing agreement to construct or acquire a project authorized under Section 13-1-640, are not subject to approval by the State Budget and Control Board. The bonds are fully negotiable within the meaning of and for the purposes of the Uniform Commercial Code.

  Section 13-1-670. The principal of and interest on bonds issued under this article are exempt from taxation, as provided in Section 12-1-60. All security agreements, indentures, and financing agreements made pursuant to the provisions of this article are exempt from state stamp and transfer taxes.

  Section 13-1-680. No bonds may be issued pursuant to the provisions of this article until the proposal of the director to issue the bonds receives the approval of the State Budget and Control Board. When the director proposes to issue bonds, he shall file a proposal with the Budget and Control Board setting forth:
  (a) a brief description of the project proposed to be undertaken and its anticipated effect upon the economy of the area in which the project is to be located;
  (b) a reasonable estimate of the cost of the project;
  (c) a general summary of the terms and conditions of any financing agreement and security agreement. Upon the filing of the proposal the Budget and Control Board shall, as soon as practicable, make an independent investigation, as it considers necessary or appropriate, and if it finds that the project is intended to promote the purposes of this article, it may approve the project. At any time following the approval, the division may proceed with the acquisition and financing of the project. If the proceeds of the bonds are to be made available to a company to construct a project, as provided in Section 13-1-440, notice of the approval of any project by the Budget and Control Board must be published at least once by the division in a newspaper having general circulation in the county where the project is to be located. Any interested party may, within twenty days after the date of the publication of notice, but not after the twenty days, challenge the validity of the approval in the court of common pleas in the county where the project is to be located.

  Section 13-1-690. The bonds must be signed in the name of the director by the manual or facsimile signature of the director. Interest coupons attached to the bonds must be signed by the facsimile signature of the director. The bonds may be issued notwithstanding that the director signing them or whose facsimile signature appears on the bonds or the coupons has ceased to hold office at the time of issue or at the time of the delivery of the bonds to the purchaser.

  Section 13-1-700. The bonds must be sold at public or private sale upon terms and conditions as the State Budget and Control Board considers advisable.

  Section 13-1-710. The deputy director shall file with the State Treasurer within thirty days from the date of their issuance a complete description of all obligations entered into by the division with the rates of interest, maturity dates, annual payments, and all pertinent data.

  Section 13-1-720. All provisions of an executive order authorizing the issuance of the bonds in accordance with this article and any covenants and agreements constitute legally binding contracts between the division and the several holders of the bonds, regardless of the time of issuance of the bonds, and are enforceable by any holder by mandamus or other appropriate action, suit, or proceeding at law or in equity in any court of competent jurisdiction.

  Section 13-1-730. The bonds authorized by the article are limited obligations of the division. The principal and interest are payable solely out of the revenues derived by the division, including any revenues that may be derived by the division pursuant to the financing agreement with respect to the project which the bonds are issued to finance. The bonds are an indebtedness payable solely from a revenue producing source or from a special source which does not include revenues from any tax or license. The bonds do not constitute nor give rise to a pecuniary liability of the division, the department, the State, or any political subdivision of the State, or to a charge against the general credit of the division, the department, the State, or any political subdivision of the State or taxing powers of the State, or any political subdivision of the State, and this fact must be plainly stated on the face of each bond. The principal of and interest on any bonds issued under this article must be secured by a pledge of the revenues from which the bonds are payable, may be secured by a security agreement, including a mortgage or any property given as security pursuant to a financing agreement, and may be additionally secured by a pledge of the financing agreement with respect to the project. In making any agreements or provisions, the division does not have the power to obligate itself or the department with respect to any project for which the proceeds of bonds issued under this article have been loaned to a company, except with respect to the project and the application of the revenues from the financing agreement, and does not have the power to incur a pecuniary liability or a charge upon its general credit or upon the general credit of the department. The trustee under any security agreement or indenture, or any depository specified by the security agreement or indenture, may be any person or corporation as the division designates, notwithstanding that the trustee may be a nonresident of this State or incorporated under the laws of the United States or the laws of other states.

  Section 13-1-740. All funds of the division must be invested by the State Treasurer and, upon approval and designation by the State Treasurer of a financial institution or institutions, all funds must be deposited in such institutions by the division in accordance with policies established by the director. Funds of the division must be paid out only upon warrants issued in accordance with policies established by the director. No warrants may be drawn or issued disbursing any of the funds of the division except for a purpose authorized by this article. The net earnings of the division, beyond that necessary for retirement of its bonds or other obligations or to implement the purposes of this article, may not inure to the benefit of any person other than the division. Upon termination of the existence of the division, title to all property, real and personal, owned by it, including net earnings, vests in the State.

  Section 13-1-750. The division shall retain unexpended funds at the close of the fiscal year of the State regardless of the source of the funds and expend the funds in subsequent fiscal years.

  Section 13-1-760. (A) Prior to undertaking any project authorized by Section 13-1-640, the director shall make a determination:
    (1) that the project will serve the purposes of this article;
    (2) that the project is anticipated to benefit the general public welfare of the locality by providing services, employment, recreation, or other public benefits not otherwise provided locally;
    (3) that the project will give rise to no pecuniary liability of the division, the department, the State, or any political subdivision of the State, or charge against the general credit of the division, the department, the State, or any political subdivision of the State, or taxing power of the State or any political subdivision of the State if the proceeds are loaned by the division to a company to construct a project;
    (4) as to the amount of bonds required to finance the project;
    (5) as to the amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance the project;
    (6) as to the amount necessary to be paid each year into any reserve funds which the director may consider advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project. The determinations of the director must be set forth in the proceedings under which the proposed bonds are to be issued.
  (B) Every financing agreement between the division and a company with respect to a project shall contain an agreement obligating the company to complete the project if the proceeds of the bonds prove insufficient, and obligating the company to pay an amount under the terms of a financing agreement, which, upon the basis of the determinations made by the director, is sufficient:
    (1) to pay the principal of and interest on the bonds issued to finance the project;
    (2) to build up and maintain any reserves considered by the director to be advisable in connection with the project;
    (3) to pay the costs of maintaining the project in good repair and keeping it properly insured, unless the financing agreement obligates the company to pay for the maintenance and insurance of the project.

  Section 13-1-770. The proceeds from the sale of any bonds issued under division of this article may be applied only for the purpose for which the bonds were issued, except any premium and accrued interest received in any sale must be applied to the payment of the principal of or the interest on the bonds sold, and if for any reason any portion of the proceeds are not needed for the purpose for which the bonds were issued, that portion of the proceeds must be applied to the payment of the principal of or the interest on the bonds. The cost of acquiring any project includes the following:
  (a) the actual cost of the construction of any part of a project, including architects', engineers', and attorneys' fees;
  (b) the purchase price of any part of a project that may be acquired by purchase;
  (c) all expenses in connection with the authorization, sale, and issuance of the bonds to finance the acquisition;
  (d) the interest on the bonds for a reasonable time prior to construction and for not exceeding one year after completion of the construction.

  Section 13-1-780. The regulations of the division must be promulgated in accordance with Chapter 23 of Title 1.

  Section 13-1-790. The director may establish profit or not-for-profit corporations as he considers necessary to carry out the purposes of this article. Officials or employees of the division may act as officials or employees of the corporations created pursuant to this section without additional compensation. A corporation created pursuant to this section is considered a `public procurement unit' for purposes of Article 19, Chapter 35 of Title 11. The division may make grants or loans to, or make guarantees for, the benefit of a not-for-profit corporation which the division has caused to be formed whose articles of incorporation require that its directors be elected by members of the division and all assets of which, upon dissolution, must be distributed to the division if it is in existence or, if it is not in existence, then to this State. These grants, loans, or guarantees may be made upon a determination by the division that the receiving not-for-profit corporation is able to carry out the purposes of this article and on the terms and conditions imposed by the division. A guarantee made by the division does not create an obligation of the State or its political subdivisions and is not a grant or loan of the credit of the State or a political subdivision. A guarantee issued by the division must be a special obligation of the division. Neither this State nor any political subdivision is liable on a guarantee nor may they be payable out of any funds other than those of the division and a guarantee issued by the division must contain on its face a statement to that effect.

  Section 13-1-800. The property of the division is not subject to any taxes or assessments, but the division shall negotiate a payment in lieu of taxes with the appropriate taxing authorities.

  Section 13-1-810. Notwithstanding any provision of law or regulation, the division continues to be an `agency' for purposes of Chapter 78 of Title 15; however, the division is not considered to be an `agency' or `state agency' or any other form of state institution for purposes of Sections 2-7-65 and 2-57-60."

Division of Aeronautics

SECTION 246. Chapter 1, Title 13 of the 1976 Code is amended by adding:

"Article 7

Division of Aeronautics


  Section 13-1-1110. The organization and objectives of the division are stated in Chapters 1 through 9 of Title 55."

Division of Public Railways established

SECTION 247. Chapter 1, Title 13 of the 1976 Code is amended by adding:

"Article 9

Division of Public Railways

  Section 13-1-1310. There is created a Division of Public Railways within the Department of Commerce which must be governed by the Director of the Department of Commerce. The accounting and personnel procedures of the division shall be maintained so that the division is a lump sum division of the department.

  Section 13-1-1320. For the purposes of this article, the following words and terms are defined as follows:
  (1) `Division', unless otherwise indicated, means the Division of Public Railways within the Department of Commerce.
  (2) `Director', unless otherwise indicated, means the executive and administrative head of the Department of Commerce or his designee.
  (3) `Deputy director or designee' means the person or persons appointed by the director, serving at his will and pleasure as his designee, to supervise and carry out the functions and duties of the Public Railways Division as provided for by law.

  Section 13-1-1330. The director shall have the following powers and duties in regard to the Division of Public Railways:
  (1) the power of a body corporate, including the power to sue and be sued, to make contracts and to adopt and use a common seal and alter it as may be deemed expedient;
  (2) to acquire by purchase or donation and to own, rent, lease, mortgage, and dispose of such property, real or personal, as he may deem proper to carry out the purposes and provisions of this article, all or any of them;
  (3) to operate, maintain, and control the tracks and equipment transferred to the division by the South Carolina State Ports Authority, or any other person, and be governed by rules and regulations of the Interstate Commerce Commission by virtue of the Class 2 Certificate issued to the Ports Commission and the Port Terminal Railroad of South Carolina;
  (4) to acquire, construct, maintain, equip and operate connecting, switching, terminal or other railroads. The term `railroad' as used in this article shall include, but not be limited to, tracks, spurs, switches, terminal, terminal facilities, road beds, rights-of-way, bridges, stations, railroad cars, locomotives, or other vehicles constructed for operation over railroad tracks, crossing signs, lights, signals, storage, administration and repair buildings, and all structures and equipment which are necessary for the operation of the railroad;
  (5) to exercise the power of eminent domain by and in the name of the division. The division also may acquire the rights-of-way of abandoned railroads or railroads proposed for abandonment by gift or purchase;
  (6) to employ and dismiss at pleasure the employees of the division and to fix and to pay the compensation thereof;
  (7) to issue revenue bonds, including notes, bonds, refunding bonds and other obligations authorized to be issued by this article, to defray the cost of acquisition, by purchase, construction or condemnation, of connecting, switching, terminal or other railroads, and necessary equipment, payable both as to principal and interest from the revenues to be derived from the operation of such railroads; provided, that all revenue bonds issued by the division shall be issued in accordance with the provisions of Sections 13-1-1350 through 13-1-1460.
  (8) to do all things necessary and required to accomplish the purposes of this article.

  Section 13-1-1340. The South Carolina State Ports Authority shall, as soon as practicable, transfer to the division its common carrier Class 2 switching railroad operations that are currently under the jurisdiction of the Interstate Commerce Commission.
  This transfer includes tracks, yards, equipment, trackage rights, franchises, licenses, leases, agreements, and labor contracts connected with the above railroad operations. Tracks comprise approximately seventeen miles of main yard and line tracks as reported in the latest annual report to the Interstate Commerce Commission. Tracks do not include railroad sidings serving a single user.

  Section 13-1-1350. In addition to the powers and duties of the director as specified by Section 13-1-1330, when it shall appear that the acquisition, by purchase, construction, condemnation or donation, and operation of additional connecting, switching, terminal or other railroads are desirable in the public interest to promote and foster economic growth and development, the director may, with the approval of the State Budget and Control Board, extend the division's operations, provided, that if such extension includes extension of mainline trackage, the common carrier railroads operating in the State shall have declined to agree to provide such facilities within six months after having been requested to do so by the division and the Budget and Control Board and provided the financing for such extensions is approved by the Budget and Control Board pursuant to the provisions of this article.

  Section 13-1-1360. All bonds issued by the director under authority of this article shall be limited obligations of the division, the principal of and interest on which shall be payable solely out of the revenues derived from the operation of the railroads authorized by this article which the bonds are issued to finance. Bonds and interest coupons issued under authority of this article shall not constitute an indebtedness of the division or department, the State of South Carolina, or any political subdivision thereof, within the meaning of any state constitutional provision or statutory limitation and shall not constitute nor give rise to a pecuniary liability of the same or a charge against the general credit of the division or the department or against the full faith, credit or taxing power of the State of South Carolina, or a political subdivision thereof, and such fact shall be plainly stated on the face of each bond. Such bonds may be executed and delivered at any time as a single issue or from time to time as several issues, may be in such form and denominations, may be of such tenor, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times not exceeding forty years from their date, may be subject to such terms of redemption, may be payable at such place or places, may bear interest at such rate or rates payable at such place or places and evidenced in such manner, and may contain such provisions not inconsistent herewith, all of which shall be provided in the proceedings of the commission authorizing the bonds. Any bonds issued under the authority of this article may be sold at public or private sale at such price and in such manner and from time to time as may be determined by the director to be most advantageous, and the division may pay, as a part of the cost of acquiring any railroad and necessary equipment, and out of the bond proceeds, all expenses, premiums and commissions which the director may deem necessary or advantageous in connection with the authorization, sale and issuance thereof. All bonds issued under the authority of this article except registered bonds, registered otherwise than to bearer and all interest coupons appurtenant thereto shall be construed to be negotiable instruments, despite the fact that they are payable solely from a specified source. The proceedings authorizing the issuance of bonds may provide for the issuance, in the future, of further bonds on a parity with those initially issued, but such proceedings shall preclude the issuance of bonds or any obligations of any sort secured by a lien prior to the lien of the bonds or bonds afterwards issued on a parity with the bonds.
  Pending the issuance of bonds, bond anticipation notes may be issued, and to the end that a vehicle be provided therefor, the provisions of Sections 11-17-10 to 11-17-110, as now or hereafter amended, shall be applicable to such bond anticipatory borrowing.

  Section 13-1-1370. The principal of and interest on any bonds issued under the authority of this article shall be secured by a pledge of the revenues from which such bonds shall be payable, may be secured by a trust indenture covering all or any part of the railroad and necessary equipment from which the revenues so pledged are derived. The proceedings under which such bonds are authorized to be issued or any such trust indenture may contain any agreements and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the fixing and collection of revenues for any railroad covered by such proceedings or trust indenture, the maintenance and insurance of the railroad and necessary equipment, the creation and maintenance of special funds from the revenues of the railroad, and the rights and remedies available in the event of default to the bondholders or to the trustee under trust indenture, all as the director shall deem advisable and as shall not be in conflict with the provisions of this article; provided, however, that in making any such agreements or provisions, the division shall not have the power to obligate itself except with respect to the railroad and necessary equipment and the application of the revenues therefrom, and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against the full faith, credit or taxing power of the State of South Carolina or any political subdivision thereof. The proceedings authorizing any bonds hereunder and any trust indenture securing such bonds may provide that, in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or trust indenture, such payment and performance may be enforced by mandamus or by the appointment of a receiver in equity with power to charge and collect revenues and to apply the revenues from the railroad in accordance with such proceedings or the provisions of such trust indenture. Any such trust indenture may provide also that in the event of default in payment or the violation of any agreement contained in the trust indenture, it may be foreclosed by proceedings at law or in equity, and may provide that any trustee under the trust indenture or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale, if he is the highest bidder. No breach of any such agreement shall impose any pecuniary liability upon the division or department or any charge upon its general credit or against the full faith, credit or taxing power of the State of South Carolina, or any political subdivision thereof.
  The trustee or trustees under any trust indenture, or any depository specified by such trust indenture, may be such persons or corporations as the director shall designate, notwithstanding that they may be nonresidents of South Carolina or incorporated under the laws of the United States or the laws of other states of the United States.

  Section 13-1-1380. Contracts for the construction of any railroad, or the purchase of any necessary equipment, may be let on such terms and under such conditions as the director shall prescribe and may be let with or without advertisement or call for bids therefor.
  Provided, however, that after the acquisition by construction of the railroad has been completed and the railroad has been placed into service the provisions of Section 1-1-440 shall apply.

  Section 13-1-1390. Prior to undertaking the acquisition of any railroad and necessary equipment, the director shall find: that the acquisition of the railroad and necessary equipment is desirable in the public interest to promote and foster economic growth and development; that the common carrier railroads operating in the State shall have declined to agree to provide such railroad and necessary equipment within six months after having been requested to do so by the division and the Budget and Control Board; that the acquisition of the railroad and necessary equipment will give rise to no pecuniary liability of the division or a charge against its general credit or a charge against the full faith, credit or taxing power of the State of South Carolina or any political subdivision thereof; the amount of bonds required to finance the acquisition of the railroad and necessary equipment; the amount necessary in each year to pay the principal and interest on the bonds proposed to be issued to finance the acquisition of the railroad and necessary equipment; the amount necessary to be paid each year into any reserve funds which the director may deem it advisable to establish in connection with the retirement of the proposed bonds and the operation and maintenance of the railroad and necessary equipment; the estimated cost of maintaining the railroad and necessary equipment in good repair and keeping them properly insured. The determinations and findings of the director required to be made above shall be set forth in the proceedings under which the proposed bonds are to be issued, and the director shall certify in writing such determinations and findings to the Budget and Control Board before the issuance of such bonds.

  Section 13-1-1400. The director shall have the power to provide that the bond proceeds shall be disbursed by the trustee bank or banks during construction upon the estimate, order or certificate of the designated construction engineer and the authorized representative of the division. In making such agreements or provisions the director shall not have the power to obligate the division except with respect to the railroad and necessary equipment and the application of the revenues therefrom, and shall not have the power to incur a pecuniary liability or a charge upon the general credit of the division or against the full faith, credit or taxing power of the State of South Carolina or a political subdivision thereof.

  Section 13-1-1410. The books and financial records of any additional acquisition authorized under this article by the director shall be kept separate and apart from the presently existing books and records of the division.

  Section 13-1-1420. The proceeds from the sale of any bonds issued under authority of this article shall be applied only for the purpose for which the bonds were issued; provided, however, that any premium and accrued interest received in any such sale shall be applied to the payment of the principal of or the interest on the bonds sold; and provided, further, that if for any reason any portion of the proceeds shall not be needed for the purpose for which the bonds were issued, such unneeded portion of the proceeds shall be applied to the payment of the principal of or the interest on the bonds. The cost of acquiring any railroad or necessary equipment shall be deemed to include the following: the actual cost of the construction of any part of the railroad which may be constructed, including architects' and engineers' fees; the purchase price of any part of railroad or necessary equipment that may be acquired by purchase; all expenses in connection with the authorization, sale and issuance of the bonds to finance such acquisition; and the interest on the bonds for a reasonable time prior to construction, during construction and for not exceeding one year after completion of the construction.

  Section 13-1-1430. Any bonds issued hereunder and at any time outstanding may at any time and from time to time be refunded by the director, but only with the approval of the State Budget and Control Board being first obtained, by the issuance of its refunding bonds in such amount as the director may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds to be refunded, together with any unpaid interest thereon and any premiums, expenses and commissions necessary to be paid in connection therewith. Any such refunding may be effected whether the bonds to be refunded have matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds for the payment of the bonds to be refunded, or by exchange of the refunding bonds for the bonds to be refunded thereby; provided, that the holders of any bonds to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they are payable, or, if they are called for redemption prior to the date on which they are by their terms subject to redemption. All refunding bonds issued under the authority of this article shall be payable in the same manner and under the same terms and conditions as are herein granted for the issuance of bonds. In addition to the powers herein granted for the issuance of refunding bonds the director may avail himself of the provisions of Sections 11-21-10 to 11-21-80, (the Advanced Refunding Act).

  Section 13-1-1440. It shall be lawful for all executors, administrators, guardians, committees and other fiduciaries to invest any moneys in their hands in bonds issued under the provisions of this article.

  Section 13-1-1450. The bonds authorized by this article and the income therefrom, all trust indentures executed as security therefor, and all railroads and necessary equipment so long as owned by the division and the revenue derived therefrom shall be exempt from all taxation in the State of South Carolina except for inheritance, estate or transfer taxes; and all trust indentures made pursuant to the provisions of this article shall be exempt from South Carolina stamp and transfer taxes.

  Section 13-1-1460. No bonds shall be issued pursuant to the provisions of this article until the proposal of the director to issue the bonds shall receive the approval of the State Budget and Control Board. Whenever the director shall propose to issue bonds pursuant to the provisions of this article, he shall file a petition with the State Budget and Control Board setting forth:
  (a) a brief description of the railroad and necessary equipment proposed to be acquired and its anticipated effect upon the economy of the area in which the railroad is to be located and of the areas adjacent thereto;
  (b) a reasonable estimate of the cost of the acquisition of the railroad and necessary equipment; and
  (c) a general summary of the terms and conditions of the trust indenture.
  Upon the filing of the petition the State Budget and Control Board shall, as soon as practicable, make such independent investigation as it deems advisable, and if it finds that the acquisition of the railroad and necessary equipment is intended to promote the purposes of this article and is reasonably anticipated to effect such result, it shall be authorized to approve the acquisition of the railroad and necessary equipment and at any time following such approval, the director may proceed with the acquisition and financing of the railroad and necessary equipment. Notice of the approval of the acquisition of the railroad and necessary equipment by the State Budget and Control Board shall be published at least once a week for three consecutive weeks by the State Budget and Control Board in a newspaper having general circulation in the State and the county where the railroad is to be located.
  Any interested party may, within twenty days after the date of the publication of such notice, but not afterwards, challenge the validity of such approval by action de novo in the court of common pleas in any county where the railroad is to be located.

  Section 13-1-1470. The authorization herein granted may be carried out by the director without publication, notwithstanding any restriction, limitation, or other procedure imposed upon the director by any other statute.

  Section 13-1-1480. In accordance with the requirements of Title 49, United States Code, Section 10102(17), and other provisions of federal laws governing the operation of common carrier railroads, unless such requirements or any part of them are waived by the Interstate Commerce Commission pursuant to Section 10505 of the Interstate Commerce Act (49 U.S. Code Section 10505), the division shall hold title to, disburse and account for assets and revenues received by it from whatever source. All such funds shall be on deposit with and maintained in separate accounts by the State Treasurer."

Advisory Coordinating Council for Economic Development established

SECTION 248. Chapter 1, Title 13 of the 1976 Code is amended by adding:

"Article 11

Advisory Coordinating Council
for Economic Development

  Section 13-1-1710. There is hereby created the Advisory Coordinating Council for Economic Development. The membership shall consist of the Director of the Department of Commerce, the Commissioner of Agriculture, the Chairman of the South Carolina Employment Security Commission, the Director of the South Carolina Department of Parks, Recreation and Tourism, the Chairman of the State Board for Technical and Comprehensive Education, the Chairman of the South Carolina Ports Authority, the Chairman of the South Carolina Public Service Authority, the Chairman of the South Carolina Jobs Economic Development Authority, the Chairman of the South Carolina Department of Revenue and Taxation, and the Chairman of the Small and Minority Business Expansion Council. The Director of the Department of Commerce shall serve as the chairman of the advisory coordinating council.

  Section 13-1-1720. (A) The advisory coordinating council shall meet at least quarterly. It shall enhance the economic growth and development of the State through strategic planning and coordinating activities which must include:
    (1) development and revision of a strategic state plan for economic development. `Strategic state plan for economic development' means a planning document that outlines strategies and activities designed to continue, diversify, or expand the economic base of South Carolina, based on the natural, physical, social, and economic needs of the State;
    (2) monitoring implementation of a strategic plan for economic development through an annual review of economic development activities or the previous year and modifying the plan as necessary;
    (3) coordination of economic development activities of member agencies of the advisory coordinating council and its advisory committees;
    (4) use of federal funds, foundation grants, and private funds in the development, implementation, revision, and promotion of a strategic plan for economic development;
    (5) evaluation of plans and programs in terms of their compatibility with state objectives and priorities as outlined in the strategic plan for economic development.
  (B) The advisory coordinating council may not engage in the delivery of services.
  Section 13-1-1730. The advisory coordinating council shall make reports to the Governor, the chairmen of the Senate Finance and House Ways and Means Committees, and the General Assembly at least annually in the Department of Commerce's annual report on the status and progress of economic development goals which have been set for the State as a part of the ongoing planning process and on the commitments, expenditures, and balance of the Economic Development Account, with appropriate recommendations.

  Section 13-1-1740. (A) The advisory coordinating council shall make recommendations to the Governor, the General Assembly, and the State Budget and Control Board as to the policies and programs involved in the state's economic development it considers necessary to carry out the objectives of the strategic plan.
  (B) The advisory coordinating council shall review agency requests for legislative appropriations for economic development and may make recommendations to the Budget and Control Board and the General Assembly concerning requests compatible with the objectives of the strategic plan. Nothing in this section limits an agency's direct access to the General Assembly, and comment by the advisory coordinating council is not a part of the budget process.

  Section 13-1-1750. Funds for technical, administrative, and clerical assistance and other expenses of the advisory coordinating council must be provided by the member agencies. The advisory coordinating council may establish technical advisory committees in order to assist in the development of a strategic plan for economic development. The advisory coordinating council shall seek to utilize data relevant to the economic growth and development of the State which is available from the Department of Transportation, the University of South Carolina, Clemson University, and other state agencies and organizations.

  Section 13-1-1760. If any provision of Sections 13-1-1710 through 13-1-1760 is in conflict with any existing provisions of law pertaining to the member agencies of the advisory coordinating council, notwithstanding the fact that the provisions of law contained in Sections 13-1-1710 through 13-1-1760 have a later effective date, the prior provision controls. Neither Sections 13-1-1710 through 13-1-1760 nor the advisory coordinating council shall infringe upon nor diminish the self-governing autonomy of the agencies involved."

Agreements authorized

SECTION 249. Title 13 of the 1976 Code is amended by adding:

"CHAPTER 2

Authority to Agree-
Governing Board Membership

  Section 13-2-10. Notwithstanding any other provision of law, the South Carolina Department of Social Services and the South Carolina Department of Health and Environmental Control, or any other state agency, are hereby authorized to enter into written agreements with any other state agency or interagency council, whether created by statute or executive order, to ensure that the purposes and function of comprehensive development programs can be more effectively and efficiently implemented.
  Provided, however, that no agency shall commit any funds by contract unless previously appropriated by the General Assembly. Provided, that any state agency which is created by executive order, and exercising the provisions of this section, shall contain at least four members of the legislature on its governing board, two of whom shall be selected from the membership of the Senate by the President of that body and two of whom shall be selected from the membership of the House of Representatives by the Speaker of that body."

Name changed

SECTION 250. Section 13-7-20 of the 1976 Code is amended to read:

  "Section 13-7-20. The Division of State Development of the Department of Commerce, hereinafter in this section referred to as the division, is hereby designated as the agency of the State which shall be responsible for the promotion and development of atomic energy resources in South Carolina.
  In accordance with the laws of this State, the division shall employ, compensate, and direct the activities of such individuals as may be necessary to carry out the provisions of this article. The division shall have the following powers and duties in the promotion and development of atomic energy industries, and resources, in addition to its other duties as imposed by law:
  (1) Promote and assist in the establishment of private atomic energy facilities such as nuclear fuel manufacturing, fabrication, and reprocessing plants; radioisotope facilities; waste-disposal sites; test-reactor sites; transportation facilities; and others which are necessary or desirable for the promotion and development of atomic energy resources within the State.
  (2) Assist the Governor, the General Assembly, and other agencies of state government in the development and promotion of atomic energy resources and industrial activities.
  (3) Coordinate the atomic energy industrial development activities of the State, recognizing the regulatory authority of the State Department of Health and the duties of other departments of state government.
  (4) Maintain a close liaison with the industrial community, the federal government, the governments of other states, and regional bodies concerned with the promotion and development of industrial activity in the field of atomic energy.
  (5) Cooperate with institutions of higher learning in order to take full advantage of all research activities which will support atomic energy development and industrial activities.
  (6) Accept and administer loans, grants, and other funds or gifts, conditional or otherwise, in the furtherance of its promotion and development functions, from the federal government and other sources, public or private."

Name changed

SECTION 251. Section 13-7-70(4) of the 1976 Code is amended to read:

  "(4) The appropriate state agency shall enter into agreements with the respective federal agencies designed to avoid duplication of effort or conflict in enforcement and inspection activities so that:
    (a) Rules and regulations adopted by the department pursuant to this section may be enforced, within their respective jurisdiction, by any authorized representative of the department, the Department of Public Safety, and the Department of Transportation, and the Public Service Commission, according to mutual understandings between such bodies of their respective responsibilities and authority.
    (b) The department, through any authorized representative, may inspect records of persons engaged in the transportation of radioactive materials, during the hours of business operation where such records reasonably relate to the method or contents of packing, marking, loading, handling of radioactive materials in transport within the State.
    (c) The department, through any authorized representative, may enter upon and inspect the premises or vehicles of any person engaged in the transportation of radioactive materials during hours of business operation, with or without a warrant, for the purpose of determining compliance with the provisions of this article and the rules and regulations thereunder.
    (d) Upon finding by the department that any provision of this section or the rules and regulations hereunder are being violated, or that any practice in the transportation of radioactive materials constitutes a clear and imminent danger to the public health and safety, it may issue an order requiring correction."

Name changed

SECTION 252. Item C. of Section 13-7-160 of the 1976 Code is amended to read:

  "C. Rules and regulations adopted by the department pursuant to this section may be enforced, within their respective jurisdiction, by any authorized representative of the department, the Department of Public Safety and the Public Service Commission, according to mutual understandings between such bodies of their respective responsibilities and authority."

Name changed

SECTION 253A. Section 13-11-20 of the 1976 Code is amended to read:

  "Section 13-11-20. Members of the board shall be appointed by the Governor as follows: Two members upon nomination of the Director of the South Carolina Department of Parks, Recreation and Tourism; one member upon nomination of the South Carolina Land Resources Conservation Commission; two members upon nomination of the Director of the Department of Commerce or his designee; one member upon nomination of the Fairfield County Council; one member upon nomination of the Fairfield County Development Board; and one member appointed by the Governor, who shall be the chairman. In addition, the Director of the South Carolina Department of Parks, Recreation and Tourism, the Director of the Department of Commerce or his designee, the Executive Director of the State Housing Authority, the Executive Director of the Central Midlands Regional Planning Council, the Transportation Commissioner representing Fairfield County, the Mayor of the city of Winnsboro, the member of the House of Representatives from District No. 41 and any Senators from Senatorial District No. 7 who are residents of Fairfield County, and the Executive Director of the South Carolina Department of Archives and History shall serve as ex officio members of the board. Terms of office of the appointed members shall be five years and until their successors are appointed and qualified. Vacancies shall be filled in the manner of original appointment for the unexpired term."

Name changed

SECTION 253B. Section 13-11-20 of the 1976 Code is amended to read:

  "Section 13-11-20. Members of the board shall be appointed by the Governor as follows: two members upon nomination of the Director of the South Carolina Department of Parks, Recreation and Tourism; one member upon nomination of the Department of Natural Resources; two members upon nomination of the Director of the Department of Commerce or his designee; one member upon nomination of the Fairfield County Council; one member upon nomination of the Fairfield County Development Board; and one member appointed by the Governor, who shall be the chairman. In addition, the Director of the South Carolina Department of Parks, Recreation and Tourism, the Director of the Department of Commerce or his designee, the Executive Director of the State Housing Authority, the Executive Director of the Central Midlands Regional Planning Council, the Transportation Commissioner representing Fairfield County, the Mayor of the city of Winnsboro, the member of the House of Representatives from District No. 41 and any Senators from Senatorial District No. 7 who are residents of Fairfield County, and the Executive Director of the South Carolina Department of Archives and History shall serve as ex officio members of the board. Terms of office of the appointed members shall be five years and until their successors are appointed and qualified. Vacancies shall be filled in the manner of original appointment for the unexpired term."

Name changed

SECTION 254. Section 13-11-80 of the 1976 Code is amended to read:

  "Section 13-11-80. For the acquiring of rights-of-way and property necessary for the accomplishment of the duties and purposes of the New Horizons Development Authority, all or any of such purposes, the authority may purchase them by negotiation or may condemn them, and should it elect to exercise the right of eminent domain, condemnation proceedings shall be maintained by and in the name of the authority, and it may proceed in the manner provided by the laws of the State for procedure by any county, municipality or authority organized under the laws of this State, by the Department of Transportation, by railroad corporations or in any other manner provided by law as the authority may in its discretion elect. The power of eminent domain shall apply not only as to all property of private persons or corporations but also as to property already devoted to public use within the area of jurisdiction of the authority."

Reference revised

SECTION 255. Section 13-19-160 of the 1976 Code, is amended to read:

  "Section 13-19-160. (A) Prior to undertaking any project authorized by Section 13-19-40, the board of the authority shall make a determination:
    (1) that the project will serve the purposes of this chapter;
    (2) that the project is anticipated to benefit the general public welfare of the locality by providing services, employment, recreation, or other public benefits not otherwise provided locally;
    (3) that the project will give rise to no pecuniary liability of the authority, the State, or any political subdivision of the State, or charge against the general credit of the authority, the State, or any political subdivision of the State, or taxing power of the State or any political subdivision of the State if the proceeds are loaned by the authority to a company to construct a project;
    (4) as to the amount of bonds required to finance the project;
    (5) as to the amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance the project;
    (6) as to the amount necessary to be paid each year into any reserve funds which the board may consider advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project. The determinations of the board must be set forth in the proceedings under which the proposed bonds are to be issued.
  (B) Every financing agreement between the authority and a company with respect to a project shall contain an agreement obligating the company to complete the project if the proceeds of the bonds prove insufficient, and obligating the company to pay an amount under the terms of a financing agreement, which, upon the basis of the determinations made by the board, is sufficient:
    (1) to pay the principal of and interest on the bonds issued to finance the project;
    (2) to build up and maintain any reserves considered by the board to be advisable in connection with the project;
    (3) to pay the costs of maintaining the project in good repair and keeping it properly insured, unless the financing agreement obligates the company to pay for the maintenance and insurance of the project."

Name change

SECTION 256. Section 14-7-130 of the 1976 Code is amended to read:

  "Section 14-7-130. In November of every year, the Department of Revenue and Taxation shall furnish the State Election Commission a computer tape of the name, address, date of birth, social security number, sex, and race of persons who are over the age of eighteen years and citizens of the United States residing in each county who hold a valid South Carolina driver's license or an identification card issued pursuant to Section 57-3-910. In December of every year, the State Election Commission shall furnish a jury list to county jury commissioners consisting of a tape or list derived by merging the list of registered voters in the county with county residents appearing on the tape furnished by the department, but only those licensed drivers and identification cardholders who are eligible to register to vote may be included in the list. Prior to furnishing the list, the commission shall make every effort to eliminate duplicate names and names of persons disqualified from registering to vote or voting pursuant to the laws and Constitution of this State. As furnished to the jury commissioners by the State Election Commission, the list or tape constitutes the roll of eligible jurors in the county. Expenses of the Department of Revenue and Taxation and State Election Commission in implementing this section must be borne by these agencies."

Name change

SECTION 257. Section 14-23-1140 of the 1976 Code is amended to read:

  "Section 14-23-1140. The Supreme Court shall have the power by rule to regulate the practice, procedure, and conduct of business in the courts of probate. Provided, however, that the State Department of Mental Health and the State Department of Disabilities and Special Needs may by rule and regulation prescribe the form of admission documents to their facilities."

Name change

SECTION 258. Section 15-9-210(b) of the 1976 Code is amended to read:

  "(b) If the corporation has no registered agent, or the agent cannot be served with reasonable diligence, the corporation may be served by registered or certified mail, return receipt requested, addressed to the office of the secretary of the corporation at its principal office. Service is perfected under this subsection at the earliest of:
    (1) the date the corporation receives the mail;
    (2) the date shown on the return receipt, if signed on behalf of the corporation; or
    (3) five days after its deposit in the United States mail, as evidenced by the postmark, if mailed postpaid and correctly addressed to the address of the company's principal office which is listed on the last filed annual report of the company or, if none has been filed, the address of the principal office specified in the initial annual report of the corporation filed with the South Carolina Department of Revenue and Taxation."

References revised
SECTION 259. Section 15-9-270 of the 1976 Code is amended to read:

  "Section 15-9-270. The summons and any other legal process in any action or proceeding against it must be served on an insurance company as defined in Section 38-1-20, including fraternal benefit associations, by delivering two copies of the summons or any other legal process to the Director of the Department of Insurance, as attorney of the company with a fee of ten dollars, of which five dollars must be retained by the director to offset the costs he incurs in service of process and of which five dollars must be deposited to the credit of the general fund of the State. A company shall appoint the director as its attorney pursuant to the provisions of Section 38-5-70. This service is considered sufficient service upon the company. When legal process against any company with the fee provided in this section is served upon the director, he shall immediately forward by registered or certified mail one of the duplicate copies prepaid directed toward the company at its home office or, in the case of a fraternal benefit association, to its secretary or corresponding officer at the head of the association."

References revised

SECTION 260. Section 15-9-280(a) of the 1976 Code is amended to read:

  "(a) Any act of transacting an insurance business as set forth in Section 38-25-110 by an unauthorized insurer is equivalent to and constitutes an irrevocable appointment by the insurer, binding upon him, his executor or administrator, or successor in interest if a corporation, of the Secretary of State or his successor in office to be the true and lawful attorney of the insurer upon whom may be served all lawful process in any action, suit, or proceeding in any court by the Director of the Department of Insurance or his designee, or by the State and upon whom may be served any notice, order, pleading, or process in any proceeding before the Department of Insurance and which arises out of transacting an insurance business in this State by the insurer. Any act of transacting an insurance business in this State by an unauthorized insurer is signification of its agreement that any such lawful process in such court action, suit, or proceeding and any such notice, order, pleading, or process in such administrative proceeding before the Department of Insurance so served are of the same legal force and validity as personal service of process in this State upon the insurer."
References revised

SECTION 261. Section 15-9-280(c) of the 1976 Code is amended to read:

  "(c) The Secretary of State shall immediately forward by certified mail one of the copies of the process or the notice, order, pleading, or process in proceedings before the Department of Insurance to the defendant in the court proceeding or to whom the notice, order, pleading, or process in the administrative proceeding is addressed or directed at its last known principal place of business and shall keep a record of all process so served on him which shall show the day and hour of service. The service is sufficient if:
    (1) notice of the service and a copy of the court process or the notice, order, pleading, or process in the administrative proceeding are sent within ten days thereafter by certified mail by the plaintiff or the plaintiff's attorney in the court proceeding or by the Department of Insurance in the administrative proceeding to the defendant in the court proceeding or to whom the notice, order, pleading, or process in the administrative proceeding is addressed or directed at the last known principal place of business of the defendant in the court or administrative proceeding; and
    (2) the defendant's receipt or receipts issued by the post office with which the letter is registered, showing the name of the sender of the letter and the name and address of the person or insurer to whom the letter is addressed, and an affidavit of the plaintiff or the plaintiff's attorney in a court proceeding or of the Department of Insurance in an administrative proceeding, showing compliance therewith, are filed with the clerk of court in which the action, suit, or proceeding is pending or with the Department of Insurance in administrative proceedings, by the date the defendant in the court or administrative proceeding is required to appear or respond thereto, or within any further time as the court or the Department of Insurance may allow."

References revised

SECTION 262. Section 15-9-280(d) of the 1976 Code is amended to read:

  "(d) No plaintiff is entitled to a judgment by default, a judgment with leave to prove damages, or a judgment pro confesso in any court or administrative proceeding in which court process or notice, order, pleading, or process in proceedings before the Department of Insurance is served under this section until the expiration of thirty days from the date of filing of the affidavit of compliance."

References revised

SECTION 263. Section 15-9-310 of the 1976 Code is amended to read:

  "Section 15-9-310. Service of process on the attorney, as defined in Section 38-45-20, for subscribers, as defined in Section 38-45-10, to reciprocal or interinsurance contracts shall be made by serving three copies thereof upon the Director of the Department of Insurance as the agent of such attorney pursuant to the provisions of Section 38-45-60. The director shall file one copy, forward one copy to the attorney and return one copy with his acceptance of service."

Name change

SECTION 264. Section 15-9-350 of the 1976 Code is amended to read:

  "Section 15-9-350. The acceptance by a nonresident of the rights and privileges conferred by the laws in force in this State permitting the operation of motor vehicles, as evidenced by the operation of a motor vehicle by such nonresident on the public highways, the streets of any incorporated municipality or the public roads of this State or anywhere within this State, or the operation by such nonresident of a motor vehicle on any such public highways, streets or public roads or anywhere within this State other than as so permitted or regulated shall be deemed equivalent to the appointment by such nonresident of the Director of the Department of Revenue and Taxation or of his successor in office to be his true and lawful attorney upon whom may be served all summons or other lawful process in any action or proceeding against him growing out of any accident or collision in which such nonresident may be involved by reason of the operation by him, for him or under his control or direction, express or implied, of a motor vehicle on such public highways, streets or public roads or anywhere within this State. Such acceptance or operation shall be a signification of his agreement that any such process against him shall be of the same legal force and validity as if served on him personally."

Name change

SECTION 265. Section 15-9-360 of the 1976 Code is amended to read:

  "Section 15-9-360. The acceptance by a nonresident motor carrier of the rights and privileges conferred by the laws now or hereafter in force in this State, permitting the operation of motor vehicles as evidenced by the operation of a motor vehicle by such nonresident either personally or through an agent or employee on the public highways in this State, or the operation of such nonresident either personally or through an agent, lessee, or employee, of a motor vehicle on the public highways of this State other than as so permitted or regulated, shall be deemed equivalent to the appointment by such nonresident motor carrier of the Director of the Department of Revenue and Taxation, or his successor in office, to be his true and lawful attorney and the attorney of his executor or administrator, upon whom may be served all summonses or other lawful process or notice in any action, assessment proceeding, or other proceeding against him or his executor or administrator, arising out of or by reason of any provisions in Chapter 31 of Title 12 relating to such vehicle or relating to the liability for tax with respect to operation of such vehicle on the highways of this State. Said acceptance or operation shall be a signification by such nonresident motor carrier of his agreement that any such process against or notice to him or his executor or administrator shall be of the same legal force and validity as if served on him personally or on his executor or administrator. All of the provisions of Sections 15-9-370, 15-9-380, and 15-9-350 shall be applicable with respect to the service of process or notice pursuant to this section."

Name change

SECTION 266. Section 15-9-370 of the 1976 Code is amended to read:

  "Section 15-9-370. Service of process upon the Director of the Department of Revenue and Taxation, as agent of a: (a) nonresident driver under the provisions of Section 15-9-350; (b) resident driver who subsequently becomes a nonresident; (c) nonresident motor carrier under the provisions of Section 15-9-360; or (d) nonresident unregulated motor carriers engaged in transporting persons, hauling farm or dairy products, hauling any other perishable products or haulers of lumber or logs, shall be made by leaving a copy thereof, with a fee of four dollars, in the hands of the Director of the Department of Revenue and Taxation or his office and such service shall be sufficient service upon the nonresident if notice of the service and a copy of the process are forthwith sent by certified mail by the plaintiff or the Director of the Department of Revenue and Taxation to the defendant and the defendant's return receipt and the plaintiff's affidavit of compliance herewith are appended to the summons or other process and filed with the summons, complaint and other papers in the cause. The Director of the Department of Revenue and Taxation shall keep a record of all processes which shall show the day and hour of service upon him. When the certified return receipt shall be returned to the Director of the Department of Revenue and Taxation, he shall deliver it to the plaintiff on request and keep a record showing the date of its receipt by him and its delivery to the plaintiff."

References revised

SECTION 267. Section 15-9-380 of the 1976 Code is amended to read:

  "Section 15-9-380. If the defendant in any such cause shall fail or refuse to accept and receipt for certified mail containing the notice of service and copy of the process and it shall be returned to the plaintiff or the motor vehicle records division of the Department of Public Safety, the original envelope as returned shall be retained and the notice and copy of the summons shall be sent by open mail and the envelope and affidavit of mailing with sufficient postage of such open letter shall be filed with the clerk of court in which such action is pending and upon the filing thereof shall have the same force and legal effect as if such process has been personally served upon such defendant."

Name change

SECTION 268. Section 15-9-390 of the 1976 Code is amended to read:

  "Section 15-9-390. Service of process upon the Director of the Department of Commerce, as agent of the nonresident operator of any aircraft which has set down in South Carolina, shall be made by leaving a copy thereof, with a fee of four dollars, in the hands of the director or his office and such service shall be sufficient service upon the nonresident if notice of the service and a copy of the process are forthwith sent by certified mail by the plaintiff or the director or his designee to the defendant and the defendant's return receipt and the plaintiff's affidavit of compliance herewith are appended to the summons or other process and filed with the summons, complaint and other papers in the cause. The director or his designee shall keep a record of all processes which shall show the day and hour of service upon him. When the certified return receipt shall be returned to the director or his designee, he shall deliver it to the plaintiff on request and keep a record showing the date of its receipt by him and its delivery to the plaintiff."

Name change

SECTION 269. Section 15-9-410 of the 1976 Code is amended to read:

  "Section 15-9-410. The provisions of Sections 15-9-390 and 15-9-400 shall not apply to any incorporated air carrier holding a certificate of public convenience and necessity from the Division of Aeronautics of the Department of Commerce."

References revised

SECTION 270. Section 15-9-415 of the 1976 Code is amended to read:

  "Section 15-9-415. Service of process upon the Director of the South Carolina Department of Natural Resources, as agent of the nonresident operator of any vessel as defined in Section 50-21-10 in the waters of this State as defined in Section 50-21-10, shall be made by leaving a copy thereof, with a fee of four dollars, in the hands of the director or his office and such service shall be sufficient service upon the nonresident if notice of the service and a copy of the process are forthwith sent by certified mail by the plaintiff or the director to the defendant and the defendant's return receipt and the plaintiff's affidavit of compliance herewith are appended to the summons or other process and filed with the summons, complaint and other papers in the cause. The director shall keep a record of all processes which shall show the day and hour of service upon him. When the certified return receipt shall be returned to the director, he shall deliver it to the plaintiff on request and keep a record showing the date of its receipt by him and its delivery to the plaintiff."

Victim's Compensation Fund and Office of Victim's Assistance restructured

SECTION 271. Section 16-3-1110 of the 1976 Code is amended to read:
  "Section 16-3-1110. For the purpose of this article and Articles 14 and 15 of this chapter:
  (1) `Board' means the South Carolina Crime Victim's Advisory Board.
  (2) `Claimant' means any person filing a claim pursuant to this article.
  (3) `Fund' means the South Carolina Victim's Compensation Fund, which is a division of the Office of the Governor.
  (4) `Director' means the Director of the Victim's Compensation Fund who is appointed by the Governor. The director shall be in charge of the State Office of Victim's Assistance which is part of this division under the supervision of the Governor.
  (5) `Field representative' means a field representative of the State Victim's Compensation Fund assigned to handle a claim.
  (6) `Crime' means an act which is defined as a crime by state, federal, or common law. Unless injury or death was recklessly or intentionally inflicted, `crime' does not include an act involving the operation of a motor vehicle, boat, or aircraft.
  (7) `Recklessly or intentionally' inflicted injury or death includes, but is not limited to, injury or death resulting from an act which violates Sections 56-5-1210, 56-5-2910, 56-5-2920, or 56-5-2930 or from the use of a motor vehicle, boat, or aircraft to flee the scene of a crime in which the driver of the motor vehicle, boat, or aircraft knowingly participated.
  (8) `Victim' means a person who suffers direct or threatened physical, emotional, or financial harm as the result of an act by someone else, which is a crime. The term includes immediate family members of a homicide victim or of any other victim who is either incompetent or a minor and includes an intervenor.
  (9) `Intervenor' means a person other than a law enforcement officer performing normal duties, who goes to the aid of another, acting not recklessly, to prevent the commission of a crime or lawfully apprehend a person reasonably suspected of having committed a crime.
  (10) `Deputy director' means the Deputy Director of the Victim's Compensation Fund.
  (11) `Panel' means a three-member panel of the board designated by the board chairman to hear appeals."

Fund director appointed by Governor

SECTION 272. Section 16-3-1120 of the 1976 Code is amended to read:
  "Section 16-3-1120. A director of the Victim's Compensation Fund must be appointed by the Governor and shall serve at his pleasure. The director is responsible for administering the provisions of this article. Included among the duties of the director is the responsibility, with approval of the South Carolina Crime Victim's Advisory Board as established in this article, for developing and administering a plan for informing the public of the availability of the benefits provided under this article and procedures for filing claims for the benefits.
  The director, upon approval by the South Carolina Crime Victim's Advisory Board, has the following additional powers and duties:
  (1) to appoint a deputy director of the Victim's Compensation Fund, and staff necessary for the operation thereof, and to contract for services. The director shall recommend the salary for the deputy director and other staff members, as allowed by statute or applicable law;
  (2) the board shall promulgate regulations to carry out the provisions and purposes of this article and Article 14 of this chapter. Regulations pertaining to this article and Article 14 of this chapter in effect on July 1, 1993, shall remain in full force and effect until otherwise amended as provided by law;
  (3) to request from the Attorney General, South Carolina Law Enforcement Division, solicitors, magistrates, judges, county and municipal police departments, and any other agency or department such assistance and data as will enable the director to determine whether, and the extent to which, a claimant qualifies for awards. Any person, agency, or department listed above is authorized to provide the director with the information requested upon receipt of a request from the director. Any provision of law providing for confidentiality of juvenile records does not apply to a request of the deputy director, the director, the board, or a panel of the board pursuant to this section;
  (4) to reinvestigate or reopen previously decided award cases as the deputy director considers necessary;
  (5) to require the submission of medical records as are needed by the board, a panel of the board, or deputy director or his staff and, when necessary, to direct medical examination of the victim;
  (6) to take or cause to be taken affidavits or depositions within or without the State. This power may be delegated to the deputy director or the board or its panel;
  (7) to render each year to the Governor and to the General Assembly a written report of the activities of the Victim's Compensation Fund pursuant to this article;
  (8) to delegate the authority to the deputy director to reject incomplete claims for awards or assistance;
  (9) to render awards to victims of crime or to those other persons entitled to receive awards in the manner authorized by this article. The power may be delegated to the deputy director;
  (10) to apply for funds from, and to submit all necessary forms to, any federal agency participating in a cooperative program to compensate victims of crime;
  (11) to delegate to the board or a panel of the board on appeal matters any power of the director or deputy director."

Department name changed

SECTION 273. Section 16-11-340 of the 1976 Code is amended to read:

  "Section 16-11-340. The South Carolina Department of Revenue and Taxation, with funds already appropriated to the department, shall print and distribute to each business establishment in this State, to which has been issued a retail sales tax license, a cardboard placard not less than eight inches by eleven inches which shall bear the following inscription in letters not less than three-fourths inch high:
  `BY ACT OF THE SOUTH CAROLINA GENERAL ASSEMBLY ANY PERSON CONVICTED OF ARMED ROBBERY SHALL SERVE A SENTENCE OF NO LESS THAN SEVEN YEARS AT HARD LABOR WITHOUT PAROLE.'
  Such placard shall be prominently displayed in all retail establishments to which they are issued."

Conservation officers renamed

SECTION 274. Section 16-23-20(1) of the 1976 Code is amended to read:

  "(1) Regular, salaried law enforcement officers of a municipality, county of the State, uncompensated Governor's constables, law enforcement officers of the federal government or other states when they are carrying out official duties while in this State, deputy enforcement officers of the Natural Resources Enforcement Division of the Department of Natural Resources within their territorial jurisdictions, and reserve police officers while serving and functioning as law enforcement officers as authorized by Section 23-28-10 et seq."

Department name changed

SECTION 275. Section 16-27-60 of the 1976 Code is amended to read:

  "Section 16-27-60. (a) The provisions of Section 16-27-30 do not apply to any person:
    (1) using any animal to pursue or take wildlife or to participate in hunting in accordance with the game and wildlife laws of this State and regulations of the South Carolina Department of Natural Resources;
    (2) using any animal to work livestock for agricultural purposes;
    (3) properly training or using dogs for law enforcement purposes or protection of persons and private property.
  (b) The provisions of this chapter do not apply to game fowl."

Department name changed

SECTION 276. Section 16-27-80 of the 1976 Code is amended to read:

  "Section 16-27-80. This chapter shall not apply to dogs used for the purpose of hunting or for dogs used in field trials in more commonly known as `water races', `Treeing Contests', `Coon-on-a-log', `Bear-Baying', or `Fox-pen-trials'. Such `Fox-pen-trials' must be approved by permit for field trials by the South Carolina Department of Natural Resources."

References revised

SECTION 277. Section 17-13-80 of the 1976 Code is amended to read:

  "Section 17-13-80. Whenever a warrant has been issued against a corporation under the provisions of Section 22-3-750 or an indictment has been returned against it under the provisions of Section 17-19-70, a copy of the warrant or indictment, accompanied in the case of an indictment by a notice to such corporation of the term of the court of general sessions at which such case shall be tried, shall be served upon such corporation in the manner provided by law for the service of process in civil actions. And when there is no agent or officer of the company within the county the service shall be made upon such person as is in charge of the property of the corporation and, if no such person can be found, it shall be served upon the Secretary of State, who shall transmit a copy of the warrant or indictment and notice by mail to the last known residence of the managing officer of the corporation, directed to such officer; provided, that in the case of a foreign corporation if such foreign corporation have no agent or other officer within the county in which the offense, or some part thereof, has been committed then process shall be served on the person appointed by such corporation to receive service of process as now required by law regulating foreign corporations or upon the Director of the Department of Insurance when by law service of process in civil actions may be made upon the Director of the Department of Insurance and such service shall be made in the same manner provided by law for service of summons in civil actions against such corporations."

References revised

SECTION 278. Section 19-5-30 of the 1976 Code is amended to read:

  "Section 19-5-30. Photostatic or certified copies of motor vehicle registration applications, registrations, notices of cancellation, suspensions or revocations, reports of violations and documents pertaining to the motor vehicle safety responsibility laws of this State, when certified by the Deputy Director of the Motor Vehicle Records Vehicle Inspection Division of the Department of Public Safety as true copies of originals, on file with the Department of Public Safety, shall be admissible in any proceedings in any court in like manner as the original thereof."

Administration of Guardian as Litem Program changed

SECTION 279. Section 20-7-121 of the 1976 Code is amended to read:

  "Section 20-7-121. There is created the South Carolina Guardian ad Litem Program to serve as a statewide system to provide training and supervision to volunteers who serve as court appointed special advocates for children in abuse and neglect proceedings within the Family Court, pursuant to Section 20-7-110. This program must be administered by the Office of the Governor."

Commissioner changed to director

SECTION 280. Section 20-7-128 of the 1976 Code is amended to read:
  "Section 20-7-128. (A) There is created the South Carolina Guardian ad Litem Program Advisory Board consisting of seven members as follows:
    (1) the chairman of the Joint Legislative Committee on Children, or his designee;
    (2) the Director of the Department of Social Services, or his designee;
    (3) the President of the State Council of Family Court Judges, or his designee;
    (4) the Director of the Division of Court Administration, or his designee;
    (5) two Family Court judges appointed by the Chief Justice of the State Supreme Court;
    (6) a private attorney who practices family or domestic law appointed by the chairman of the Joint Legislative Committee on Children.
  (B) The terms of the members are coterminous with their terms of office or with their positions except for the private attorney. The term of the attorney is for two years.
  (C) The chairman of the Joint Legislative Committee on Children shall serve as chairman of the board. The board shall meet at least four times annually and more frequently upon the call of the chairman to review and evaluate the activities of the Guardian ad Litem Program."

Department name changed

SECTION 281. Section 20-7-410 of the 1976 Code is amended to read:

  "Section 20-7-410. The magistrate courts and municipal courts of this State have concurrent jurisdiction with the Family Courts for the trial of persons under seventeen years of age charged with traffic violations or violations of the provisions of Title 50 relating to fish, game, and watercraft when these courts would have jurisdiction of the offense charged if committed by an adult. The Family Court shall report all adjudications of juveniles for moving traffic violations to the Department of Public Safety as required by other courts of this State pursuant to Section 56-1-330 and adjudications of the provisions of Title 50 to the Department of Natural Resources."

Department of Youth Services changed to Department of Juvenile Justice

SECTION 282. Section 20-7-600 of the 1976 Code is amended to read:

  "Section 20-7-600. (A) When a child found violating a criminal law or ordinance, or whose surroundings are such as to endanger his welfare, is taken into custody, the taking into custody is not an arrest. The jurisdiction of the court attaches from the time of the taking into custody. When a child is so taken into custody, the officer taking the child into custody shall notify the parent, guardian, or custodian of the child as soon as possible. Unless otherwise ordered by the court, the person taking the child into custody may release the child to a parent, a responsible adult, a responsible agent of a court-approved foster home, group home, nonsecure facility, or program upon the written promise, signed by the person, to bring the child to the court at a stated time or at a time the court may direct. The written promise, accompanied by a written report by the officer, must be submitted to the South Carolina Department of Juvenile Justice as soon as possible, but not later than twenty-four hours after the child is taken into custody. If the person fails to produce the child as agreed, or upon notice from the court, a summons or a warrant may be issued for the apprehension of the person or of the child.
  (B) When a child is not released pursuant to subsection (A), the officer taking the child into custody immediately shall notify the authorized representative of the Department of Juvenile Justice, who shall respond within one hour to the location where the child is being detained. Upon responding, the authorized representative of the department shall review the facts in the officer's report or petition and any other relevant facts and determine if there is a need for detention of the child. The officer's written report must be furnished to the authorized representatives of the department and must state:
    (1) the facts of the offense;
    (2) the reason why the child was not released to the parent. Unless the child is to be detained, the child must be released by the authorized representative of the department to the custody of his parents or other responsible adult upon their written promise to bring the child to the court at a stated time or at a time the court may direct. However, if the offense for which the child was taken into custody is a violent crime as defined in Section 16-1-60 the child may be released only by the authorized representative of the department with the consent of the officer who took the child into custody.
  (C) No child may be transported to a juvenile detention facility in a police vehicle which also contains adults under arrest. No child may be placed in secure confinement or ordered detained by the court in secure confinement in an adult jail or other place of detention for adults for more than six hours. However, the prohibition against the secure confinement of juveniles in adult jails does not apply to juveniles who have been waived to the Court of General Sessions for the purpose of standing trial as an adult. Juveniles placed in secure confinement in an adult jail during this six-hour period must be confined in an area of the jail which is separated by sight and sound from adults similarly confined.
  (D) Peace officers' records of children must be kept separate from records of adults, must not be open to public inspection, and may be open to inspection only by governmental agencies authorized by the judge.
  (E) When a child is to be transported to a juvenile detention facility following a detention screening review conducted by the Department of Juvenile Justice or after a detention order has been issued by the court, the local law enforcement agency which originally took the child into custody shall transport this child to the juvenile detention facility.
  (F) When the authorized representative of the Department of Juvenile Justice determines that placement of a juvenile outside the home is necessary, he shall make a diligent effort to place the child in an approved home, program, or facility, other than a secure juvenile detention facility, when these alternatives are appropriate and available. A child is eligible for detention in a secure juvenile detention facility only if the child:
    (1) is charged with a violent crime as defined in Section 16-1-60;
    (2) is charged with a crime which, if committed by an adult, would be a felony other than a violent crime, and the child:
      (a) is already detained or on probation or conditional release in connection with another delinquency proceeding;
      (b) has a demonstrable recent record of wilful failures to appear at court proceedings;
      (c) has a demonstrable recent record of violent conduct resulting in physical injury to others; or
      (d) has a demonstrable recent record of adjudications for other felonies; and:
        (i) there is clear and convincing evidence to establish a risk of flight, or serious harm to others; or
        (ii) the instant offense involved the use of a firearm;
    (3) is a fugitive from another jurisdiction;
    (4) requests protection in writing under circumstances that present an immediate threat of serious physical injury. A child who meets the criteria provided in this subsection is eligible for detention. Detention is not mandatory for a child meeting the criteria if that child can be supervised adequately at home or in a less secure setting or program.
  (G) A child who is taken into custody because of a violation of law which would not be a criminal offense under the laws of this State if committed by an adult must not be placed or ordered detained in an adult detention facility. A child who is taken into custody because of a violation of the law which would not be a criminal offense under the laws of this State if committed by an adult must not be placed or ordered detained more than twenty-four hours in a juvenile detention facility, unless an order previously has been issued by the court, of which the child has notice and which notifies the child that further violation of the court's order may result in the secure detention of that child in a juvenile detention facility. If a juvenile is ordered detained for violating a valid court order, the juvenile may be held in secure confinement in a juvenile detention facility for not more than seventy-two hours, excluding weekends and holidays. However, nothing in this section precludes a law enforcement officer from taking a status offender in custody.
  (H) If the authorized representative of the Department of Juvenile Justice has not released the child to the custody of his parents or other responsible adult, the court shall hold a detention hearing within twenty-four hours from the time the child was taken into custody, excluding Saturdays, Sundays, and holidays. At this hearing, the authorized representative of the department shall submit to the court a report stating the facts surrounding the case and a recommendation as to the child's continued detention pending the adjudicatory and dispositional hearings. The court shall appoint counsel for the child if none is retained. No child may proceed without counsel in this hearing, unless the child waives the right to counsel, and then only after consulting at least once with an attorney. At the conclusion of this hearing, the court shall determine whether probable cause exists to justify the detention of the child as well as determining the appropriateness of, and need for, the child's continued detention. If continued detention of a juvenile is considered appropriate by the court and if a juvenile detention facility exists in that county which meets state and federal requirements for the secure detention of juveniles, or if that facility exists in another county with which the committing county has a contract for the secure detention of its juveniles, and if commitment of a juvenile by the court to that facility does not cause it to exceed its design and operational capacity, the Family Court shall order the detention of the juvenile in that facility. Periodic reviews of the detention order must be conducted in accordance with the rules of practice in a Family Court. However, a juvenile must not be detained in secure confinement in excess of ninety days. If the child does not qualify for detention or otherwise require continued detention under the terms of subsection (F), the child must be released to a parent, guardian, or other responsible person."

Department name changed; obsolete language deleted

SECTION 283. Section 20-7-630 of the 1976 Code is amended to read:

  "Section 20-7-630. The Department of Juvenile Justice shall provide intake and probation services for juveniles brought before the Family Courts of this State and for persons committed or referred to the Department of Juvenile Justice in cooperation with all local officials or agencies concerned. All recommendations by the Department of Juvenile Justice as to intake shall be reviewed by the office of the solicitor in the circuit concerned and the final determination as to whether or not the juvenile shall be prosecuted in Family Court shall be made by the solicitor or of his authorized assistant. Statements of the juvenile contained in the department files shall not be furnished to the solicitor's office as part of the intake review procedure nor shall the solicitor's office be privy to such statements in connection with its intake review."

Commissioner changed to director

SECTION 284. Section 20-7-655(B) of the 1976 Code, as added by Act 448 of 1992, is amended to read:

  "(B) The director shall appoint a child protective services appeals committee for each case decision which is appealed. The committee must be comprised of three officials or employees of the Department of Social Services, none of whom may be a resident of or employed by the local child protective services agency in the county where the case originates or a member of the investigative unit which investigated the case if the case decision being appealed involves institutional abuse."

Department name changed

SECTION 285. Section 20-7-770 of the 1976 Code is amended to read:
  "Section 20-7-770. Notwithstanding the right of a person to petition the Family Court pursuant to Section 20-7-780 for the release of a person's record of juvenile adjudications, upon the request of the Attorney General or a circuit solicitor which is made pursuant to a current criminal investigation or prosecution, the Department of Juvenile Justice shall provide the requesting party with a copy of the juvenile criminal record of a person adjudicated as a juvenile for the commission of a violent crime, as defined in Section 16-1-60. A person with a record for an adjudicated violent crime must have his juvenile criminal record maintained by the Department of Juvenile Justice for at least ten years after the date of the violent offense adjudication."

Department name changed

SECTION 286. Section 20-7-780 of the 1976 Code is amended to read:

  "Section 20-7-780. (A) The court shall make and keep records of all cases brought before it and shall devise and cause to be printed forms for social and legal records and other papers as may be required. The official juvenile records of the courts and the Department of Juvenile Justice are open to inspection only by consent of the judge to persons having a legitimate interest but always must be available to the legal counsel of the juvenile. All information obtained and social records prepared in the discharge of official duty by an employee of the court or Department of Juvenile Justice is confidential and must not be disclosed directly or indirectly to anyone, other than the judge or others entitled under this chapter to receive this information unless otherwise ordered by the judge. However, these records are open to inspection without the consent of the judge where the records are necessary to defend against an action initiated by a juvenile.
  (B) The Department of Juvenile Justice, if requested, shall provide the victim of a violent crime, as defined in Section 16-1-60, with the name and other basic descriptive information about the juvenile charged with the crime and with information about the juvenile justice system, the status and disposition of the delinquency action, including hearing dates, times, and locations, and concerning services available to victims of juvenile crime. The name, identity, or picture of a child under the jurisdiction of the court, pursuant to this chapter, must not be made public by a newspaper, radio, or television station except as authorized by order of the court.
  (C) A juvenile charged with committing a violent offense as defined in Section 16-1-60, or charged with committing grand larceny of a motor vehicle, may be fingerprinted by the law enforcement agency who takes the juvenile into custody. A juvenile charged with committing a nonviolent or status offense must not be fingerprinted by law enforcement except upon order of a Family Court judge. The fingerprint records of a juvenile must be kept separate from the fingerprint records of adults. The fingerprint records of a juvenile must not be transmitted to the files of the State Law Enforcement Division or to the Federal Bureau of Investigation or otherwise distributed or provided to another law enforcement agency unless the juvenile is adjudicated delinquent for having committed a violent offense, as defined in Section 16-1-60, or for grand larceny of a motor vehicle. The fingerprint records of a juvenile who is not adjudicated delinquent for having committed a violent offense, as defined in Section 16-1-60, or for grand larceny of a motor vehicle upon notification to law enforcement, must be destroyed or otherwise expunged by the law enforcement agency who took the juvenile into custody. The Department of Juvenile Justice may fingerprint and photograph a juvenile upon commitment to a juvenile correctional institution. Fingerprints and photographs taken by the Department of Juvenile Justice remain confidential and must not be transmitted to the State Law Enforcement Division, the Federal Bureau of Investigation, or another agency or person, except for the purpose of aiding the department in apprehending an escapee from the department or assisting the Missing Persons Information Center in the location or identification of a missing or runaway child."

Department name changed

SECTION 287. Section 20-7-1330(a) of the 1976 Code is amended to read:

  "(a) place the child on probation or under supervision in his own home or in the custody of a suitable person elsewhere, upon conditions as the court may determine. Any child placed on probation by the court remains under the authority of the court only until the expiration of the specified term of his probation. This specified term of probation may expire before but not after the eighteenth birthday of the child. Probation means casework services during a continuance of the case. Probation must not be ordered or administered as punishment, but as a measure for the protection, guidance, and well-being of the child and his family. Probation methods must be directed to the discovery and correction of the basic causes of maladjustment and to the development of the child's personality and character, with the aid of the social resources of the community. The court may impose restitution or participation in supervised work or community service as a condition of probation. The Department of Juvenile Justice, in coordination with local community agencies, shall develop and encourage employment of a constructive nature designed to make reparation and to promote the rehabilitation of the child. If the court imposes as a condition of probation a requirement that restitution in a specified amount be paid, the amount to be paid as restitution may not exceed five hundred dollars. The Department of Juvenile Justice shall develop a system for the transferring of any court ordered restitution from the juvenile to the victim or owner of any property injured, destroyed, or stolen."

Counties to provide facilities for intake and probation services for Department of Juvenile Justice; obsolete language deleted

SECTION 288. Section 20-7-1490 of the 1976 Code is amended to read:

  "Section 20-7-1490. Each county shall provide sufficient physical facilities for the operation of the statewide Family Court system in that county, including facilities necessary for the provision of intake and probation services by the Department of Juvenile Justice."

Commissioner changed to director

SECTION 289. Section 20-7-1645 of the 1976 Code is amended to read:

  "Section 20-7-1645. A state agency which places a child in a foster home may compensate a foster family, who has made its private residence available as a foster home, for the uninsured loss it incurs when its personal or real property is damaged, destroyed, or stolen by a child placed in its home, if the loss is found by the director of the placing state agency, or his designee, to have occurred, to have been caused solely or primarily by the acts of the child placed with the foster family, and if the acts of the foster family have not in any way caused or contributed to the loss. Compensation may not be in excess of the actual cost of repair or replacement of the damaged or destroyed property but in no case may compensation exceed five hundred dollars for each occurrence."

Department name changed; quarterly reviews of juvenile offenders may be waived by parole board

SECTION 290. The first paragraph of Section 20-7-2095 of the 1976 Code is amended to read:

  "The Board of Juvenile Parole (parole board) shall meet monthly, and at other times as may be necessary, to review the records and progress of children committed to the custody of the Department of Juvenile Justice for the purpose of deciding the release or revocation of release of such children. The parole board shall make periodic inspections, at least quarterly, of the records of persons committed to the custody of the Department of Juvenile Justice and may, in its discretion, issue temporary and final discharges or release such persons conditionally and prescribe conditions for such release into aftercare. It shall be the right of any such juvenile to personally appear before the parole board every three months for the purpose of parole consideration, but no such appearance shall begin until the parole board determines that an appropriate period of time has elapsed since the juvenile's commitment. In addition, and at the discretion of the parole board, the quarterly reviews of juveniles committed to the department for having committed a violent offense, as defined in Section 16-1-60, may be waived by the parole board until the juvenile reaches the minimum parole guidelines established for the juvenile by the parole board. In order to allow such reviews and personal appearances by children, the chairman of the parole board may assign the members to meet in panels of not less than three members to receive progress reports and recommendations, review cases, meet with children, meet with counselors, and to hear matters and consider cases for release, parole, and parole revocation. Membership on such panels shall be periodically rotated on a random basis by the chairman. At the meetings of the panels, any unanimous vote shall be considered the final decision of the parole board. Any panel vote that is not unanimous shall not be considered as a final decision of the parole board and the matter shall be referred to the full parole board, which shall determine the matter by a majority vote of its membership."

Commissioner changed to director; Director to employ deputy director of parole; department to provide support services to parole board

SECTION 291. Section 20-7-2115 of the 1976 Code is amended to read:

  "Section 20-7-2115. The department is charged with the responsibility of making aftercare investigations to determine suitable placement for children considered for conditional release from the correctional schools. The department shall also have the responsibility of supervising the aftercare program, making revocation investigations, and submitting findings to the parole board.
  The director and such staff as he shall designate in the performance of their duties of investigation, counseling and supervision, and revocation investigations, are considered official representatives of the parole board.
  The director and his staff shall be subject to the rules and regulations for parole and parole revocation promulgated by the parole board and shall meet with the parole board at its meetings when requested. Community-based counselors, or their supervisors, with assigned clients committed to institutions of the department shall periodically visit the institutions in order to counsel their clients and accomplish such duties as outlined in this subarticle.
  Recognizing the need to maintain autonomy and to provide a check and balance system, the Director of the Department of Juvenile Justice shall employ a deputy director of parole and other staff necessary to carry out the duties of parole examinations, victim liaison, and revocation hearings. The deputy director serves at the will and pleasure of the Director of Department of Juvenile Justice. All staff are employees of the department and are directly responsible to the department both administratively and operationally. Funds allocated for the functions designated in this section must be incorporated as a line item within the department's budget.
  The department shall continue to provide the budgetary, fiscal, personnel, and training information resources and other support considered necessary by the parole board to perform its mandated functions."

Changed age from 18 to 19 for latest time at which conditional release must expire; department name changed

SECTION 292. Section 20-7-2125 of the 1976 Code is amended to read:

  "Section 20-7-2125. Any juvenile, who shall have been conditionally released from a correctional school, shall remain under the authority of the parole board until the expiration of the specified term imposed in his conditional aftercare release. The specified period of conditional release may expire before but not after the nineteenth birthday of the juvenile. Each juvenile conditionally released shall be subject to the conditions and restrictions of his release and may at any time on the order of the parole board be returned to the custody of a correctional institution for violation of aftercare rules or conditions of release.
  As a condition of correctional release, the parole board may impose participation in the restitution, work and community service programs as established by the Department of Juvenile Justice pursuant to item (a) of Section 20-7-1330."

Board responsibilities changed to director; department name change

SECTION 293. Section 20-7-2155 of the 1976 Code is amended to read:

  "Section 20-7-2155. To be eligible for appointment as a probation counselor, an applicant must possess all of the following:
  (a) a college degree involving special training in the field of social science, or its equivalent;
  (b) a personality and character as would render him suitable for the functions of the office.
  Probation counselors shall live in districts as shall be determined by the director. Each counselor shall periodically visit the schools under the supervision of the Department of Juvenile Justice and familiarize himself with the records, background and needs of the children, and shall make periodic reports to the school.
  Duties of the probation counselors shall be to make such investigation of the child and home as may be required by the court; to be present in court at the hearing of cases and to furnish to the court such information and assistance as the judge may require; and to take charge of any child before and after hearing as may be directed by the court. During the probationary period of any child and during the time that the child may be committed to any institution or to the care of any association or person for custodial or disciplinary purposes, the child shall always be subject to visitation by the probation counselors or other agents of the court."

Board responsibilities changed to department; department to arrange suitable corrective placement; department name changed

SECTION 294. Section 20-7-2170 of the 1976 Code is amended to read:

  "Section 20-7-2170. A child after his twelfth birthday and before his seventeenth birthday, or while under the jurisdiction of the Family Court for disposition of an offense that occurred prior to his seventeenth birthday, may be committed to the custody of the Department of Juvenile Justice, which shall arrange for placement in a suitable corrective environment. Children under the age of twelve years may be committed only to the custody of the department, which shall arrange for placement in a suitable corrective environment other than institutional confinement. No child under the age of seventeen years shall be committed or sentenced to any other penal or correctional institution of this State.
  When a child is adjudicated delinquent, convicted of a crime or has entered a plea of guilty or nolo contendere in a court authorized to commit to the custody of the Department of Juvenile Justice, such child may be committed for an indeterminate period until he has reached his twenty-first birthday or until sooner released by the Board of Juvenile Parole under its discretional powers.
  Any sentence which includes commitment to the custody of the Department of Juvenile Justice for a crime which, when committed by an adult, would carry a maximum sentence of thirty years or more, shall include a further provision that the Board of Juvenile Parole may transfer such child to the Department of Juvenile Justice, which may then transfer the child to the Department of Corrections for confinement for a period, including time served in its custody, not to exceed thirty years. Such transfer shall be within the discretion of the Department of Juvenile Justice or the Board of Juvenile Parole as may be appropriate.
  The court, before committing a child as a delinquent or as a part of a sentence including commitments for contempt, shall first temporarily commit the child to the Department of Juvenile Justice for a period not to exceed forty-five days for evaluation, and the department shall make a recommendation to the court prior to final commitment. The committing judge may waive in writing temporary commitment in cases where the child concerned has within the past year either been evaluated by a center and the evaluation is available to the court or has within the past year been temporarily or finally discharged or conditionally released or paroled from a correctional institution of the Department of Juvenile Justice, and the child's previous evaluation or other equivalent information is available to the court. All commitments to the custody of the Department of Juvenile Justice for delinquency as opposed to the conviction of a specific crime may be made only for the reasons and in the manner prescribed in Sections 20-7-400, 20-7-410, 20-7-430, 20-7-460, 20-7-600, 20-7-620, 20-7-740, 20-7-750, 20-7-760, 20-7-770, 20-7-780, 20-7-1330, 20-7-1340, and 20-7-1520, with evaluations made and proceedings conducted only by the judges authorized to order commitments in this section. When a child is committed to the custody of the department under the proceedings, commitment must be for an indeterminate sentence, not extending beyond the twenty-first birthday of the child unless sooner released by the department.
  Any juvenile who has not been paroled or otherwise released from the custody of the department by his nineteenth birthday shall be transferred to the custody and authority of the Youthful Offender Division of the Department of Corrections. If not sooner released by the Department of Corrections, the juvenile shall be released by his twenty-first birthday according to the provisions of his commitment; provided, however, that notwithstanding the above provision, any juvenile committed as an adult offender by order of the Court of General Sessions shall be considered for parole or other release according to the laws pertaining to release of adult offenders."

Board responsibilities changed to department

SECTION 295. Section 20-7-2175 of the 1976 Code is amended to read:

  "Section 20-7-2175. Any child committed under the terms of this article shall be conveyed by the sheriff, deputy sheriff or persons appointed by the sheriff of the county in which such child resides, to the custody of the department, and the expense of such conveyance and delivery shall be borne by such county. The committing judge may, in his discretion, order that such child be transferred to the custody of the department without the attendance of an officer or in such manner as may be advisable."

Board responsibilities changed to department; custody by department includes facilities and programs

SECTION 296. Section 20-7-2180 of the 1976 Code is amended to read:

  "Section 20-7-2180. From the time of lawful reception of any child by the Department of Juvenile Justice and during his stay in custody in a correctional institution, facility, or program operated by the department, he shall be under the exclusive care, custody, and control of the department. All expenses shall be borne by the State."

Board responsibilities changed to department

SECTION 297. Section 20-7-2185 of the 1976 Code is amended to read:

  "Section 20-7-2185. Any commitment under this subarticle shall be full and sufficient authority to the department and to officers and agents thereof for the detention and keeping therein of any child until he arrives at the age of twenty-one years, unless sooner dismissed therefrom by order of the parole board, transferred to the Department of Corrections, or released therefrom by order of a judge of the Supreme Court or the Circuit Court of this State, rendered at chambers or otherwise, in a proceeding in the nature of an application for a writ of habeas corpus."

Board responsibilities changed to department

SECTION 298. Section 20-7-2190 of the 1976 Code is amended to read:

  "Section 20-7-2190. From the time of the lawful reception of any child into custody by the department, and during the period of such custody, the department shall provide for, either solely or in cooperating with other agencies, the care, custody and control of such child, as well as make available instruction in such branches of useful knowledge as may be suited to his years and capacity that will enable such child to learn a useful trade."

Board responsibilities changed to department; commissioner changed to director

SECTION 299. Section 20-7-2195 of the 1976 Code is amended to read:

  "Section 20-7-2195. The Department of Juvenile Justice, when authorized by an order of any circuit judge, shall, after notice to the Department of Corrections, transfer temporarily to the custody of the Youthful Offender Division any child who has been committed to the custody of the department who is more than seventeen years of age and whose presence in such custody appears to be seriously detrimental to the welfare of others in such custody. The director of the Department of Corrections shall receive such children as may be transferred thereto as herein provided and properly care for them. Each child thus transferred to the Youthful Offender Division shall be held therein, subject to all the rules and discipline of the division. Children transferred to the Youthful Offender Division pursuant to this section shall be under the authority of the division and subject to release according to the division's policies and procedures.
  The Youthful Offender Division shall at least quarterly make recommendations to the parole board concerning possible release of each child so transferred or his return to institutions of the department."

Board responsibilities changed to department; department name changed

SECTION 300. Section 20-7-2200 of the 1976 Code is amended to read:

  "Section 20-7-2200. It shall be unlawful for any person to:
    (1) cause, aid, encourage or influence any child who is a ward of the Department of Juvenile Justice to:
      (a) enter or remain in a house of prostitution, a house or lodging place used for immoral purposes or gambling place;
      (b) violate any law of this State or ordinance of any city;
      (c) indulge in vicious or immoral conduct; or
      (d) violate his conditional release or run away from the supervision of the Department of Juvenile Justice;
    (2) to harbor any child who has escaped from such authorities or who is running away from their supervision.
    Any person who violates the provisions of this section is guilty of a misdemeanor and shall, upon conviction, be punished by a fine not exceeding five hundred dollars or imprisonment for a period not exceeding six months or both."

Department name changed

SECTION 301. Section 20-7-2203 of the 1976 Code is amended to read:

  "Section 20-7-2203. (A) While on the institutional grounds of the department, it is unlawful to furnish, attempt to furnish, or to possess, with the intent to furnish, contraband to any juvenile committed to the custody of the Department of Juvenile Justice. `Juvenile', for purposes of this section, is defined as any person committed to the custody of the Department of Juvenile Justice. It is unlawful for a juvenile committed to the custody of the department to possess contraband.
  (B) For purposes of this section, `contraband' is defined as:
    (1) any device which may be used as a weapon, including, but not limited to, firearms, knives, blades, clubs, or billies; or
    (2) drugs of any type or description, including, but not limited to, marijuana, cocaine, and any other controlled substance as listed in Chapter 53 of Title 44, for which a juvenile does not possess a current lawful prescription; or
    (3) poisons or other dangerous chemicals which can cause injury or death; or
    (4) flammable liquids of any type, including, but not limited to, gasoline, kerosene or lighter fluid; or
    (5) any type of alcohol and any liquid containing any concentration of intoxicating alcohol; or
    (6) keys, locks, or tools of any description not officially issued to the juvenile by the department; or
    (7) any additional items determined to be contraband by the Director of the Department of Juvenile Justice.
  (C) If the director determines any additional items to be contraband, a list of these items must be published and posted in conspicuous places so as to be seen readily by any person entering the institutional grounds or on the institutional grounds of the Department of Juvenile Justice.
  (D) An adult found violating the provisions of this section is guilty of a felony and, upon conviction, must be punished by a fine of not less than one thousand dollars nor more than ten thousand dollars or imprisoned for not less than one year nor more than ten years, or both."

Department name changed

SECTION 302. Section 20-7-2205 of the 1976 Code is amended to read:

  "Section 20-7-2205. A child who is guilty of a violation of law or other misconduct which would not be a criminal offense if committed by an adult or violates the conditions of probation for such an offense shall not be committed to the custody of a correctional institution operated by the Department of Juvenile Justice except for commitment for an indeterminate period not to exceed forty-five days for the purpose of evaluation, in accordance with the provisions of Section 20-7-2170."

Administrative law judge to hear appeals

SECTION 303. Section 20-7-2260 of the 1976 Code is amended to read:

  "Section 20-7-2260. The department may revoke the license of any child welfare agency which fails to maintain the proper standards of care and service to children in its charge or which violates any provision of this subarticle. No license shall be revoked or its renewal refused except upon thirty days' written notice thereof. Upon appeal from such revocation or refusal to renew a license, the department shall, after thirty days' written notice thereof, hold a hearing, at which time the agency shall be given an opportunity to present testimony and confront witnesses. An appeal of the agency's decision may be made to an administrative law judge pursuant to the Administrative Procedures Act."

Commissioner changed to director; board responsibilities changed to director

SECTION 304. Section 20-7-2310 of the 1976 Code is amended to read:

  "Section 20-7-2310. The Department of Social Services shall administer an adoption program on behalf of the State. Adoption services must be available statewide. The adoption program provided by the department must be a centrally administered state program. The department shall designate regions which will be administered by the state office. The adoption unit shall constitute a separate and distinct unit within the department so as to assure specialization of effort and effective access to the department director. This unit must be staffed with qualified personnel professionally trained in the social work or other related fields. The department shall continually evaluate its staffing, functions, policies, and practices on the basis of nationally recognized standards. A committee to advise the department on all children's services must be appointed by the department director. Persons appointed to the committee must be knowledgeable on adoption, protective services, foster care, and other children's services."

Review of the Foster Care of Children placed within Office of the Governor, etc.

SECTION 305. Section 20-7-2379 of the 1976 Code is amended to read:

  "Section 20-7-2379. There is created, as part of the Office of the Governor, the Division for Review of the Foster Care of Children. The division must be supported by a board consisting of seven members, all of whom must be past or present members of local review boards. There must be one member from each congressional district and one member from the State at large, all appointed by the Governor with the advice and consent of the Senate. Terms of office for the members of the board are for four years and until their successors are appointed and qualify. Of the initial appointments, the Governor shall designate two members to serve for one year, two for a term of two years, two for a term of three years, and one for a term of four years. Thereafter, appointments must be made by the Governor in the manner as prescribed above for terms of four years to expire on June thirtieth of the appropriate year. The board shall elect from its members a chairman who shall serve for two years. Four members of the board constitute a quorum for the transaction of business. Members of the board shall receive per diem, mileage, and subsistence as provided by law for members of boards, commissions, and committees while engaged in the work of the board. The board shall meet at least quarterly and more frequently upon the call of the division director to review and coordinate the activities of the local review boards and make recommendations to the General Assembly with regard to foster care policies, procedures, and deficiencies of public and private agencies which arrange for foster care of children as determined by the review of cases provided for in items (A) and (B) of Section 20-7-2376. These recommendations must be included in an annual report, filed with the General Assembly, of the activities of the state office and local review boards. The board, upon recommendation of the division director, shall promulgate regulations to carry out the provisions of this subarticle. These regulations shall provide for and must be limited to procedures for: reviewing reports and other necessary information at state, county, and private agencies and facilities; scheduling of reviews and notification of interested parties; conducting local review board and board of directors' meetings; disseminating local review board recommendations, including reporting to the appropriate Family Court judges the status of judicially approved treatment plans; and developing policies for summary review of children privately placed in privately-owned facilities or group homes.
  The Governor may employ a director to serve at his pleasure who may be paid an annual salary to be determined by the General Assembly. The director may be removed pursuant to the provisions of Section 1-3-240. The director shall employ staff as is necessary to carry out the provisions of this subarticle, and the staff must be compensated in an amount and in a manner as may be determined by the General Assembly. The provisions of this subarticle may not be construed to provide for subpoena authority."

Department name changed

SECTION 306. Section 20-7-2640 of the 1976 Code is amended to read:

  "Section 20-7-2640. (A) A child with special needs who is a resident in the State who is the subject of an adoption assistance agreement with another state may receive medical assistance identification from this State upon the filing with the Department of Social Services of a certified copy of the agreement obtained from the adoption assistance state. In accordance with regulations of the department, the adoptive parents at least annually shall show that the agreement is still in force or has been renewed.
  (B) The Department of Health and Human Services shall consider the holder of medical assistance identification pursuant to this section as any other holder of medical assistance identification under the laws of this State and shall process and make payment on claims on account of the holder in the same manner and pursuant to the same conditions and procedures as for other recipients of medical assistance.
  (C) The Department of Health and Human Services or the Department of Social Services shall provide coverage and benefits for a child who is in another state and who is covered by an adoption assistance agreement made by the department for the coverage or benefits, if any, not provided by the residence state. To this end, the adoptive parents acting for the child may submit evidence of payment for services or benefit amounts not payable in the residence state and must be reimbursed for them. However, there is no reimbursement for services or benefit amounts covered under insurance or other third party medical contract or arrangement held by the child or the adoptive parents. The department shall promulgate regulations implementing this subsection. The additional coverages and benefit amounts provided pursuant to this subsection are for the costs of services for which there is no federal contribution, or which, if federally aided, are not provided by the residence state. The regulations must include, but are not limited to, procedures to be followed in obtaining prior approval for services in those instances where required for the assistance.
  (D) The provisions of this section apply only to medical assistance for children under adoption assistance agreements from states that have entered into a compact with this State under which the other state provides medical assistance to children with special needs under adoption assistance agreements made by this State. All other children entitled to medical assistance pursuant to adoption assistance agreements entered into by this State are eligible to receive assistance in accordance with the laws and procedures applicable to the agreements."

Commissioner changed to director

SECTION 307. The following items of Section 20-7-2700 of the 1976 Code are amended to read:

  "k. `Department' means the State Department of Social Services, the agency designated to administer the regulation of child day care facilities under subarticle, with the advice of the State Advisory Committee on the Regulation of Child Day Care Facilities.
  l. `Committee' means the State Advisory Committee on the Regulation of Child Day Care Facilities, named under this subarticle to advise the department on regulatory matters related to child day care facilities.
  m. `Director' means the administrative head of the department.
  p. `Regular license' means a license issued by the department for two years to an operator of a private child day care center or group day care home or a family day care home which elects to be licensed showing that the licensee is in compliance with the provisions of this subarticle and the regulations of the department at the time of issuance and authorizing the licensee to operate in accordance with the license, this subarticle, and the regulations of the department.
  q. `Provisional license' means a license issued by the department to an operator of a private child day care center or group day care home or a family day care home which elects to be licensed authorizing the licensee to begin operations although the licensee temporarily is unable to comply with all of the requirements for a license.
  r. `Regular approval' means a written notice issued by the department for a two-year period to a department, agency or institution of the State, or a county, city, or other political subdivision, approving the operation of a public child day care center or group day care home in accordance with the provisions of the notice, this subarticle and the regulations of the department.
  s. `Provisional approval' means a written notice issued by the department to a department, agency, or institution of the State, or a county, city, or other political subdivision approving the commencement the operations of a public child day care center or group day care home although the operator is temporarily unable to comply with all of the requirements for approval.
  u. `Declaratory order' means a written statement on the part of the department approving plans for construction or renovation insuring against the imposition of more stringent regulations at a later date.
  x. `Deficiency correction notice' means a written statement on the part of the department notifying a child day care facility which is not complying with any applicable regulations to correct the deficiencies stated in the notice within a reasonable time limit."

Commissioner changed to director; administrative law judge to hear appeal

SECTION 308. Section 20-7-2760 of the 1976 Code is amended to read:

  "Section 20-7-2760. a. An applicant who has been denied a license by the department shall be given prompt written notice by certified or registered mail. The notice shall indicate the reasons for the proposed action and shall inform the applicant of the right to appeal the decision to the director in writing within thirty days after the receipt of notice of denial. An appeal from the final decision of the director may be taken to an administrative law judge pursuant to the Administrative Procedures Act.
  b. A licensee whose application for renewal is denied or whose license is about to be revoked shall be given written notice by certified or registered mail. The notice shall contain the reasons for the proposed action and shall inform the licensee of the right to appeal the decision to the director or his designee in writing within thirty calendar days after the receipt of the notice. An appeal from the final decision of the director may be taken to an administrative law judge pursuant to the Administrative Procedures Act.
  c. At the hearing provided for in this section, the applicant or licensee may be represented by counsel and has the right to call, examine and cross-examine witnesses and to otherwise introduce evidence. Parents appearing at the hearing may also be represented by counsel. The hearing examiner is empowered to require the presence of witnesses and evidence by subpoena on behalf of the appellant or department. The final decision of the department shall be in writing, shall contain the department's findings of fact and rulings of law and shall be mailed to the parties to the proceedings by certified or registered mail to their last known addresses as may be shown in the application, or otherwise. A full and complete record shall be kept of all proceedings, and all testimony shall be reported but need not be transcribed unless the department's decision is appealed, or a transcript is requested by an interested party. Upon an appeal, the department shall furnish to any appellant, free of charges, a certified copy of the transcript of all evidentiary proceedings before it. Other parties shall pay the cost of transcripts prepared at their request.
  d. The decision of the department is final unless appealed by a party to an administrative law judge pursuant to the Administrative Procedures Act."

Commissioner changed to director

SECTION 309. Section 20-7-2830 of the 1976 Code is amended to read:

  "Section 20-7-2830. a. An applicant or operator who has been denied approval or renewal of approval by the department shall be given prompt written notice thereof, which shall include a statement of the reasons for the denial. The notice shall also inform the applicant or operator that it may, within thirty days after the receipt of the notice of denial, appeal the denial by making a written request to the director or his designee for an opportunity to show cause why its application should not be denied.
  b. Upon receiving a written petition, the director or his designee shall give the applicant or operator reasonable notice and an opportunity for a prompt, informal meeting with the director or his designee with respect to the action by the department, and an opportunity to submit written material. On the basis of the available evidence, including information obtained at the informal meeting and from the written material, the director or his designee shall decide whether the application shall be granted for approval, provisional approval or denied. The decision of the director or his designee shall be in writing, shall contain findings of fact and shall be mailed to the parties to the proceedings by certified or registered mail. Notification of the decision shall be sent to the Governor and appropriate officials of the state or local government."

Commissioner changed to director; appeals procedures revised

SECTION 310. Section 20-7-2880 of the 1976 Code is amended to read:

  "Section 20-7-2880. (a) A registrant whose statement of registration has been withdrawn by the department shall be given written notice by certified or registered mail. The notice shall contain the reasons for the proposed action and shall inform the registrant of the right to appeal the decision to the director or his designee in writing within thirty calendar days after the receipt of the notice. Upon receiving a written appeal the director or his designee shall give the registrant reasonable notice and an opportunity for a prompt hearing before the director or his designee. On the basis of the evidence adduced at the hearing, the director or his designee shall make the final decision of the department as to whether the statement of registration shall be withdrawn. If no written appeal is made, the statement of registration shall be withdrawn as of the termination of the thirty-day period.
  (b) At the hearing provided for in this section, the registrant may be represented by counsel, and has the right to call, examine and cross-examine witnesses and to otherwise introduce evidence. Parents appearing at the hearing may also be represented by counsel. The director is empowered to require the presence of witnesses and evidence by subpoena on behalf of the appellant or department. The final decision of the department shall be in writing, shall contain the department's findings of fact and rulings of law and shall be mailed to the parties to the proceedings by certified or registered mail. A full and complete record shall be kept of all proceedings, and all testimony shall be reported and need not be transcribed unless the decision is appealed, or a transcript is requested by an interested party. Upon an appeal, the department shall furnish to any appellate, free of charge, a certified copy of the transcript of all evidentiary proceedings before it. Other parties shall pay the cost of transcripts.
  (c) The decision of the department is final unless appealed by a party pursuant to the Administrative Procedures Act."

Appeals are pursuant to Administrative Procedures Act

SECTION 311. Section 20-7-2930 of the 1976 Code is amended to read:

  "Section 20-7-2930. Whenever the health or fire safety agency finds upon inspection that a child day care center or group day care home is not complying with the applicable regulations, the appropriate agency shall notify the department. The department shall then request the operator to correct such deficiencies.
  a. Every correction notice shall be in writing and shall include a statement of the deficiencies found, the period within which the deficiencies must be corrected and the provision of the subarticle and regulations relied upon. The period shall be reasonable and, except when the appropriate agency finds an emergency dangerous to the health or safety of children, not less than thirty days from the receipt of such notices.
  b. Within two weeks of receipt of such notice, the operator of the facility may file a written request with the department for administrative reconsideration of the notice or any portion thereof.
  c. The department shall grant or deny a written request and shall notify the operator of action taken.
  d. In the event that the operator of the facility fails to correct deficiencies within the period prescribed, the department may suspend the registration of the facility to be effective thirty days after date of notice. An appeal may be taken pursuant to the Administrative Procedures Act."

Appeals procedures revised

SECTION 312. Section 20-7-2940 of the 1976 Code is amended to read:
  "Section 20-7-2940. a. When the registration of a facility has been suspended, the operator must be given prompt written notice. The notice must indicate the reasons for the suspension and inform the operator of the right to appeal the decision through administrative channels to the department and according to established appeals procedure for the department.
  b. Upon appeal, the decision of the department is final unless appealed by a party pursuant to the Administrative Procedures Act."

Department responsibilities changed to director; obsolete language deleted

SECTION 313. Section 20-7-3050 of the 1976 Code is amended to read:

  "Section 20-7-3050. The State Advisory Committee on the Regulation of Child Day Care Facilities shall:
  a. Review changes in the regulations and suggested standards proposed by the director or his designee and make recommendations thereon to the director or his designee. The committee shall evaluate the regulations and suggested standards at the three year review period (subsection c. of Section 20-7-2980) and recommend necessary changes. No regulation shall be promulgated if the standard has been disapproved by a simple majority of the committee.
  b. Advise the department regarding the improvement of the regulation of child day care facilities.
  c. Advise the department on matters of regulatory policy, planning and priorities.
  d. As it deems necessary, hold a public hearing at least thirty days prior to adoption of the regulations.
  e. Plan with the department for the procedures to be used in notifying licensees, approved operators and registrants regarding regulatory changes sixty days prior to intended promulgation.
  f. Maintain through the department the essential liaison with other departments and agencies of state and local government so as to preclude imposition of duplicate requirements upon operators subject to regulations under this subarticle.
  g. Act to move the adoption of its recommendations and other pertinent disposition of matters before it by decision of a simple majority of those members present and voting, provided there is a quorum of eight members."
Department of Youth Services changed to Department of Juvenile Justice

SECTION 314. Section 20-7-3100 of the 1976 Code is amended to read:

  "Section 20-7-3100. There is hereby created the South Carolina Department of Juvenile Justice, hereinafter referred to as the department."

Department name changed

SECTION 315. Section 20-7-3110 of the 1976 Code is amended to read:

  "Section 20-7-3110. Except as otherwise provided in this subarticle, all references to the Department of Juvenile Placement and Aftercare shall mean the Department of Juvenile Justice and all references to the board shall be changed to read the Department of Juvenile Justice."

Board deleted; appointment of director by Governor with advice and consent of the Senate

SECTION 316. Section 20-7-3120 of the 1976 Code is amended to read:

  "Section 20-7-3120. The Governor shall appoint a director with the advice and consent of the Senate who shall possess qualifications necessary to manage the affairs of the department. If a vacancy occurs in the office when the Senate is not in session, the Governor may appoint a director to fill the vacancy and such appointee shall be a de facto member until the Senate acts upon the appointment."

Removal of director

SECTION 317. Section 20-7-3130 of the 1976 Code is amended to read:

  "Section 20-7-3130. The director shall be subject to removal by the Governor as provided in Section 1-3-240."

Board responsibilities changed to director

SECTION 318. Section 20-7-3170 of the 1976 Code is amended to read:

  "Section 20-7-3170. The director shall be vested with the exclusive responsibility for policy of the department to carry out the responsibilities, duties and privileges provided for in this chapter."

Board responsibilities changed to director

SECTION 319. Section 20-7-3180 of the 1976 Code is amended to read:

  "Section 20-7-3180. The director must execute a good and sufficient bond payable to the State in the sum of fifty thousand dollars, conditioned for the faithful performance of the duties of his office and the accurate accounting for all monies and property coming into his hands. Such bond shall be executed by a surety company authorized to do business under the laws of this State, and the premium on any such bond shall be paid by the State out of the department's appropriations."

Board responsibilities changed to department and director

SECTION 320. Section 20-7-3190 of the 1976 Code is amended to read:

  "Section 20-7-3190. The department may enter into agreements with the governing bodies of other state departments or institutions for the purpose of effecting a more efficient and economical management of any institutions or programs under its supervision. The department is authorized to make contracts and expend public funds as required to carry out the functions prescribed for it in this article within the limits of appropriated funds.
  An annual report of the department shall be prepared by the director which shall include an account of all funds received and expended, persons served by the department including a report of the state and conditions of the correctional institutions and community programs operated by the department."

Commissioner changed to department

SECTION 321. Section 20-7-3200 of the 1976 Code is amended to read:

  "Section 20-7-3200. The director shall serve as chief executive officer of the department. The director may appoint and employ such officers and employees necessary to perform the duties and responsibilities of the department and shall ensure that the department's organizational structure differentiates between separate divisions, the community-based services and institutional services of the department."

Board responsibilities changed to director

SECTION 322. Section 20-7-3210 of the 1976 Code is amended to read:

  "Section 20-7-3210. The department shall provide such community services as the director shall assign to it which shall include, but not be limited to, the following:
  (a) Family Court intake screening and referral counseling;
  (b) serving, advising and counseling children placed on probation by the Family Court;
  (c) serving, advising and counseling of children in the various institutions as may be necessary to the placement of the children in proper environment after release and the placement of children in suitable jobs where necessary and proper;
  (d) supervising and guiding of children released or conditionally released from institutions;
  (e) counseling children released or conditionally released by the parole board;
  (f) coordinating the activities of supporting community agencies which aid in the social adjustment of children released by the parole board;
  (g) providing or arranging for necessary services leading to the rehabilitation of delinquents either within the department or through cooperative arrangements with other appropriate agencies;
  (h) providing counseling and supervision for any child under twelve years of age who has been adjudicated delinquent, convicted of a crime or has entered a plea of guilty or nolo contendere, when other suitable personnel is not available and upon request of the court concerned;
  (i) providing detention screening services when a child is taken into custody for violation of a law or ordinance as provided in subsections (a) and (b) of Section 20-7-600;
  (j) providing prevention services to include short and long range planning, establishing statewide priorities and standards, development of public awareness programs, and technical assistance to local government in the development of prevention programs;
  (k) providing for the development of secure and nonsecure alternatives to jail;
  (l) providing for a variety of community-based programs to augment regular probation services, such as volunteer services, restitution, community work programs, family counseling and contract probation with specific sanctions for various types of behavior;
  (m) providing for a variety of community-based programs to serve as alternatives to institutions, such as halfway houses, work release, intensive probation, restitution, forestry and wilderness camps, marine science programs, and other residential and nonresidential programs;
  (n) providing for programs to divert juveniles, where proper and appropriate, from the juvenile justice system."

Board responsibilities changed to director

SECTION 323. Section 20-7-3230 of the 1976 Code is amended to read:

  "Section 20-7-3230. (A) The department shall provide institutional services which include, but are not limited to:
    (1) providing correctional institutional services for juveniles committed under the provisions of Part 3 of this subarticle;
    (2) managing, operating, and supervising Birchwood, Willow Lane, John G. Richards, and other facilities as the director may establish;
    (3) the establishment and maintenance of residential and nonresidential reception and evaluation centers at which all children committed to its custody by a Circuit or Family Court must be received, examined, and evaluated before assignment to one of its institutions or before other disposition or recommendation is made concerning the child. The commitment of a child to a reception and evaluation center or youth correctional institution of the department may be made only after the child has been adjudicated delinquent. The evaluation conducted by the reception and evaluation centers includes, but is not limited to:
      (a) a complete social, physical, psychological, and mental examination;
      (b) an investigation and consideration of family and community environment and other facts in the background of the person concerned that might relate to his delinquency;
      (c) a determination of the correctional or custodial care that would be most appropriate. The department shall create facilities and employ personnel as will enable the centers to conduct the necessary physical, mental, and psychological examinations required by this section;
    (4) providing juvenile detention services for juveniles charged with having committed a criminal offense who are found, after a detention screening or detention hearing, to require detention or placement outside the home pending an adjudication of delinquency or dispositional hearing. Detention services provided by the department for the benefit of the counties of this State must include a secure juvenile detention center. However, this secure juvenile detention center shall cease to be operated as a preadjudicatory juvenile detention center two years after the facility becomes operational unless specifically renewed and reauthorized as a preadjudicatory juvenile detention center by the General Assembly. The size and capacity of this juvenile detention facility must be determined by the department after its consideration and review of recognized national standards for the design, construction, and operation of juvenile detention facilities. These recognized national standards must be met or exceeded by the department in determining the size and capacity of its juvenile detention center and in providing for the construction and operation of the facility. However, the size and capacity of this juvenile detention center may not exceed thirty beds. Upon completion of construction and upon the department's determination that the facility is staffed in accordance with existing standards and, therefore, can be operated in accordance with these standards, the department shall determine and announce the maximum operational capacity of the facility. Before September 2, 1990, the department shall determine and announce the anticipated maximum operational capacity of this facility and shall contact each county governmental body in this State for the purpose of determining which counties anticipate utilizing this facility upon the facility becoming operational. The department shall inform each county governmental body of the existing state and federal laws regarding the confinement of juveniles charged with committing criminal offenses, of each county's ability to develop its own facility or to contract with other counties for the development of a regional facility, of the availability of this facility, and of the per diem and transportation requirements set forth in this section if this facility is to be used by the county. This notice must be provided to each county for the purpose of determining which county governmental bodies desire to enter into an intergovernmental agreement with the department for the detention of juveniles from their particular county who are charged with committing a criminal offense for which pretrial detention is both authorized and appropriate. A juvenile must not be ordered detained by the court in this juvenile detention center nor may the department accept a juvenile into this facility if his detention causes the department to exceed the announced operational capacity. A juvenile ordered detained in this facility must be screened within twenty-four hours by a social worker or, if considered appropriate, by a psychologist, in order to determine whether the juvenile is emotionally disturbed, mentally ill, or otherwise in need of services. The department shall determine an amount of per diem for each child detained in this center, which must be paid by the committing county. The per diem paid by the county may not exceed the daily average cost of a juvenile committed to the department and must be placed in a separate account by the department for operation of this facility.
  (B) The reception and evaluation center located in Columbia is designated `The William J. Goldsmith Reception and Evaluation Center'."

Commissioner changed to director

SECTION 324. Section 20-7-3235 of the 1976 Code is amended to read:

  "Section 20-7-3235. Juvenile correctional employees of the department, while performing their officially assigned duties relating to the custody, control, transportation, or recapture of a juvenile offender within the jurisdiction of the department, and other employees of the department authorized by the director to perform similar functions as part of their official duties, have the status of peace officers anywhere in this State in a matter relating to the custody, control, transportation, or recapture of the juvenile. Employees of the department's Division of Public Safety, on proper training and certification from the Criminal Justice Academy, and after having taken the oath of office prescribed by law and the Constitution of this State, must continue to be commissioned as state constables pursuant to Section 23-1-60."

Department name changed; board responsibilities changed to director and department

SECTION 325. Section 20-7-3240 of the 1976 Code is amended to read:

  "Section 20-7-3240. The Department of Juvenile Justice is designated as a special school district which shall operate a continuous progress education program on a twelve-month basis. There is created within the Department the Education Division which shall provide academic and vocational training at the Reception and Evaluation Center, Birchwood High School, Willow Lane Junior High School and all other institutions operating under the department. Academic and vocational training provided pursuant to this section shall meet all educational standards prescribed by law and by the Department of Education for public schools of the State including, but not limited to, compliance with and operation under the provisions of the Education Finance Act, the Defined Minimum Program, teacher and superintendent certification laws and regulations, and other laws or regulations governing the education of children. The department may prescribe such additional requirements as it may from time to time deem necessary.
  The State Superintendent of Education shall administer the standards related to the school programs. Reports from the Department of Education evaluating the educational program at all juvenile corrections institutions and indicating whether or not the program meets the standards as prescribed, shall be made directly to the director. Such Department of Education supervisory personnel as deemed appropriate shall be utilized for evaluating the programs and for reporting to the director.
  Schools operated by the department shall receive funds from the Department of Education under the same provisions as other public schools in the State.
  The director shall operate as the trustee for schools under the department's jurisdiction for all administrative purposes, including the receipt and expenditure of funds appropriated or granted to the schools for any purpose. The director shall employ a full-time superintendent of schools for the special school district. The superintendent shall hold a valid superintendent's certificate from the Department of Education and shall serve as the head of the Education Division.
  In lieu of classification by the Division of State Personnel, the employment status of the superintendent of schools for the department and all instructional personnel operating under the Education Division of the department shall be governed by the laws of the State regarding employment of instructional personnel and regulations of the Department of Education."

Board responsibilities changed to department and director

SECTION 326. Section 20-7-3270 of the 1976 Code is amended to read:

  "Section 20-7-3270. The department is authorized to charge and collect fees for evaluation and treatment services provided for any person referred or temporarily committed to its facilities either at the evaluation center in Columbia or any center or other facility of the department. Fees may be charged to a parent or guardian or to the public or private agency responsible for the temporary commitment or referral. In cases where insurance coverage is available, fees of treatment or evaluation may be charged to the insurer. No fees shall be charged to any person who is finally committed to a custodial facility of the department and no person shall be denied treatment or evaluation services because of inability to pay for such services.
  The director shall approve a schedule of maximum charges for the various services of the department, including residential care, and shall review the schedule from time to time. The department shall adopt procedures to determine ability to pay and may authorize its designees to reduce or waive charges based upon their findings.
  No charge for services rendered by the department may exceed the actual cost of such services at the facility rendering such services.
  The department shall establish a hearing and review procedure so that parents or legal guardians of a person under the department's jurisdiction may appeal charges made for services or may present to the departmental officials information or evidence which, in their opinion, needs to be considered in establishing charges.
  The department may utilize all legal procedures to collect lawful claims. All funds collected pursuant to this section shall be deposited with the State Treasurer for use of the department in defraying the cost of services for which such fees may be collected."

Board responsibilities changed to director

SECTION 327. Section 20-7-3280 of the 1976 Code is amended to read:
  "Section 20-7-3280. The director is authorized to sell mature trees, other timber and farm products and commodities from lands owned by the department. Prior to the sale of timber, the director shall consult with the State Forester to determine the economic feasibility of and obtain approval for such sales. Funds derived from such sales shall be credited to the account of the department to be used for capital improvements subject to the approval of the Budget and Control Board."

Department name changed

SECTION 328. Section 20-7-3300 of the 1976 Code is amended to read:

  "Section 20-7-3300. Records and information of the department pertaining to juveniles shall be confidential as provided in Section 20-7-780; provided, however, that where necessary and appropriate to ensure the provision and coordination of services and assistance to a juvenile under the custody or supervision of the department, the director must establish policies by which the department may transmit such information and records to another department, agency, or school district of state or local government, or private institution or facility licensed by the State as a child serving organization, where such is required for admission or enrollment of the juvenile into a program of services, treatment, training, or education. Records and information provided to a public or private school by the Department of Juvenile Justice must include in the case of an individual who has been adjudicated for having committed a violent crime, as defined in Section 16-1-60 and committed to the Department of Juvenile Justice, a copy of, and, if requested, information pertaining to that person's juvenile criminal record. The person's juvenile criminal record must be provided by the Department of Juvenile Justice to the principal of the school which the juvenile is eligible to attend immediately upon the person's release from the Department of Juvenile Justice. Each school district is responsible for developing a policy for schools to follow within the district which ensures that the confidential nature of these records and of the other information received is maintained. This policy must include at a minimum the retention of the juvenile's criminal record, and other information relating to his criminal record, in the juvenile's school disciplinary file, or in some other confidential location, restricting access to the file and to its contents to school personnel as deemed necessary and appropriate to meet and adequately address the educational needs of the juvenile and for the destruction of these records upon the juvenile's completion of secondary school, or upon reaching twenty-one years of age."

Board responsibilities given to department

SECTION 329. Section 20-7-3310 of the 1976 Code is amended to read:

  "Section 20-7-3310. No person shall be committed to an institution under the control of the department who is seriously handicapped by mental illness or retardation. If, after a person is referred to the Reception and Evaluation Center, it shall be determined that he is mentally ill, as defined in Section 44-23-10, or mentally retarded to an extent that he could not be properly cared for in its custody, the department may institute necessary legal action to accomplish the transfer of such person to such other state institution as in its judgment is best qualified to care for him in accordance with the laws of this State. Such legal actions shall be brought in the resident county of the subject person. The department shall establish standards with regard to the physical and mental health of persons which it can accept for commitment."

Juvenile Parole Board created under department; obsolete language deleted

SECTION 330. Section 20-7-3350 of the 1976 Code is amended to read:

  "Section 20-7-3350. There is hereby created under the Department of Juvenile Justice the Board of Juvenile Parole, hereinafter referred to as the parole board. The parole board shall be composed of ten members appointed by the Governor with the advice and consent of the Senate. Of these members, one shall be appointed from each of the six congressional districts and four members shall be appointed from the State at large. If a vacancy occurs on the parole board when the Senate is not in session, the Governor may appoint a member to fill the vacancy and such appointee shall be a de facto member until the Senate acts upon the appointment.
  Terms of office for the members of the parole board shall be for four years and until their successors are appointed and qualify; provided, however, that of the initial appointments, the Governor shall designate two of such members whose appointments shall be for one year, two for a term of two years, three for a term of three years, and three for a term of four years. Thereafter, appointments shall be made by the Governor in the manner provided for above for terms of four years, such terms to expire on June thirtieth of the appropriate year.
  No member shall be reappointed to the parole board until two years after the expiration of a full four-year term."

Removal of board member

SECTION 331. Section 20-7-3360 of the 1976 Code is amended to read:

  "Section 20-7-3360. A member of the parole board shall be subject to removal by the Governor as provided in Section 1-3-240(C)."

Commissioner and department name changes

SECTION 332. Section 20-7-5420(A) of the 1976 Code is amended to read:

  "(A) The State Council on Maternal, Infant, and Child Health shall consist of the following members:
    (1) the Director of the South Carolina Department of Health and Environmental Control; the State Superintendent of Education or his designee; the State Director of Social Services; Director of the South Carolina Department of Alcohol and Other Drug Abuse Services; the State Director of Mental Health; the State Director of the Department of Disabilities and Special Needs; the Director of the Department of Health and Human Services; the Commissioner of the South Carolina Commission for the Blind; and the Chairman of the Statewide Health Coordinating Council; and
    (2) a member of the Health Care Planning and Oversight Committee, to be appointed by the chairman; and a member of the Joint Legislative Committee on Children, to be appointed by the chairman.
  The Governor shall appoint one representative of each of the following organizations as a member of the council: South Carolina Medical Association; South Carolina Chapter of the American Academy of Pediatrics; South Carolina Chapter of the American College of Obstetrics and Gynecology; South Carolina Chapter of the Academy of Family Practice; South Carolina Hospital Association; Medical University of South Carolina; University of South Carolina School of Medicine; Clemson University Extension Service; South Carolina Congress of Parents and Teachers; Developmental Disabilities Council; South Carolina March of Dimes; South Carolina Nurses Association; and South Carolina Perinatal Association.
  The Governor shall appoint one member from each of the six congressional districts of the State who represents business, civic, community, and religious groups.
  The Governor may appoint other ex officio members to the council as are needed to provide information to assist in the work of the council."

Continuum of Care established as a Division in Governor's Office

SECTION 333. Section 20-7-5610 of the 1976 Code is amended to read:

  "Section 20-7-5610. It is the purpose of this article to develop and enhance the delivery of services to severely emotionally disturbed children and youth and to ensure that the special needs of this population are met appropriately to the extent possible within this State. To achieve this objective, the Continuum of Care for Emotionally Disturbed Children Division is established in the office of the Governor. This article supplements and does not supplant existing services provided to this population."

Board responsibilities changed to division; department name changes

SECTION 334. Section 20-7-5630 of the 1976 Code is amended to read:

  "Section 20-7-5630. (A) The Continuum of Care Division must be supported by an advisory council knowledgeable in services to emotionally disturbed children and includes:
    (1) the chairman of the Joint Legislative Committee on Children or his designee;
    (2) the chairman of the Joint Committee on Mental Health and Mental Retardation or his designee;
    (3) one representative from each of the following agencies:
      (a) Department of Health and Human Services;
      (b) Department of Mental Health;
      (c) Department of Disabilities and Special Needs;
      (d) Department of Juvenile Justice;
      (e) State Department of Education;
      (f) South Carolina School for the Deaf and Blind;
      (g) John De La Howe School;
      (h) Wil Lou Gray Opportunity School;
      (i) State Agency of Vocational Rehabilitation;
      (j) Division for Review of the Foster Care of Children in the Governor's Office;
      (k) Department of Health and Environmental Control;
      (l) Department of Social Services.
    (4) a representative appointed by the Governor from a:
      (a) child advocacy group;
      (b) licensed, practicing child psychiatrist;
      (c) credentialed, practicing child psychologist;
      (d) parent of a child currently receiving services from the Continuum of Care;
      (e) designee of the Governor;
      (f) private provider of services for severely emotionally disturbed children.
  (B) The term of office for members appointed by the Governor in item (4) of subsection (A) is four years and until their successors are appointed and qualify. The appointments must be made with the advice and consent of the Senate. The terms expire on June thirtieth of the appropriate year. A vacancy must be filled by the Governor for the remainder of the unexpired term, with the advice and consent of the Senate.
  (C) The advisory council shall elect from its members a chairman for a term of two years. The advisory council shall meet at least quarterly or more frequently upon the call of the chairman. Members of the advisory council not employed by the State or its political subdivisions shall receive per diem, subsistence, and mileage as provided by law for members of state boards, commissions, and committees while engaged in the work of the council."

Governor to employ director; removal procedures; division authorized to promulgate regulations

SECTION 335. Section 20-7-5660 of the 1976 Code is amended to read:

  "Section 20-7-5660. The Governor may employ a director to serve at his pleasure who is subject to removal pursuant to the provisions of Section 1-3-240. The director shall employ staff necessary to carry out the provisions of this article. The funds for the director, staff, and other purposes of the Continuum of Care Division must be provided in the annual general appropriations act. The division shall promulgate regulations in accordance with this article and the provisions of the Administrative Procedures Act and formulate necessary policies and procedures of administration and operation to carry out effectively the objectives of this article."

Board responsibilities changed to division

SECTION 336. Section 20-7-5670 of the 1976 Code is amended to read:

  "Section 20-7-5670. The Continuum of Care Division shall submit an annual report to the Governor and General Assembly on its activities and recommendations for changes and improvements in the delivery of services by public agencies serving children."

Suspension on removal of magistrate

SECTION 337. Section 22-1-30 of the 1976 Code is amended to read:

  "Section 22-1-30. A magistrate may be suspended or removed by order of the Supreme Court pursuant to its rules for incapacity, misconduct, or neglect of duty."

Employment and term of SLED Chief

SECTION 338. Section 23-3-10 of the 1976 Code is amended to read:

  "Section 23-3-10. There is created the South Carolina Law Enforcement Division (SLED). The division must be headed by a chief appointed by the Governor with the advice and consent of the Senate and shall hold office until his successor is appointed and qualified. The term of the chief is six years. On the effective date of the provisions of this section providing for a six-year term for the chief, a successor to the chief serving on this date must be appointed as provided herein. Nothing herein prevents the chief serving on this date from being reappointed to additional six-year terms. The chief may only be removed pursuant to the provisions of Section 1-3-240 of the 1976 Code. The agents and officers of the division must be commissioned by the Governor upon the recommendation of the chief. The agents and officers shall have that rank or title as may be provided under the State Employees Classification System. The chief may appoint other personnel considered necessary and as provided for in the annual appropriations act. All agents and officers commissioned by the Governor are subject to discharge for cause which must be subject to review as is now provided by law for other state employees."

Additional functions of SLED

SECTION 339. Chapter 3 of Title 23 of the 1976 Code is amended by adding:

  "Section 23-3-15. (A) In addition to those authorities and responsibilities set forth in this chapter, the South Carolina Law Enforcement Division shall have specific and exclusive jurisdiction and authority statewide, on behalf of the State, in matters including but not limited to the following functions and activities:
    (1) the investigation of organized criminal activities or combined state-federal interstate criminal activities, all general criminal investigations, arson investigation and emergency event management pertaining to explosive devices;
    (2) the maintenance and operation of a statewide comprehensive forensic sciences laboratory;
    (3) covert investigation of illegal activities pertaining to and the interdiction of narcotics and other illicit substances;
    (4) operation and maintenance of a central, statewide criminal justice data base and data communication system;
    (5) establishment and operation of highly specialized, rapid response law enforcement units within the division;
    (6) operation and regulation of state polygraph examination services;
    (7) law enforcement, regulation enforcement, and inspections under Title 61; and
    (8) such other activities as are not inconsistent with the mission of the division or otherwise proscribed by law.
  (B) No other state agency or department having personnel who are commissioned law enforcement officers may engage in any of the activities herein set forth without the express permission of the Chief of the South Carolina Law Enforcement Division. Any state agencies or departments having commissioned law enforcement personnel shall assist the South Carolina Law Enforcement Division at any time the Chief of SLED requests assistance in carrying out the statutory duties of the division.
  (C) The South Carolina Law Enforcement Division is responsible for the enforcement of all criminal laws, misdemeanors, and felonies, and civil laws, the violation of which may result in a fine or other penalty being assessed against the violator, which laws are now enforced by law enforcement personnel employed by and under the jurisdiction of the Alcoholic Beverage Control Commission. These civil and criminal laws also include regulations and ordinances pertinent thereto. The duties, functions, and powers of these law enforcement personnel are devolved upon the South Carolina Law Enforcement Division and the law enforcement personnel of this agency on the effective date of this section shall perform their duties and functions under the auspices of the division and shall become a part of the South Carolina Law Enforcement Division in the manner provided by law."

Bonds of officers and agents

SECTION 340. Section 23-3-20 of the 1976 Code is amended to read:

  "Section 23-3-20. Every officer and agent commissioned pursuant to this article shall file a bond, or be covered by a surety bond, of not less than two thousand dollars with the South Carolina Law Enforcement Division, subscribed by a licensed surety company, conditioned for the faithful performance of his duties, for the prompt and proper accounting of all funds coming into his hands, and for the payment of a judgment recovered against him in a court of competent jurisdiction upon a cause of action arising out of breach or abuse of official duty or power and for the payment of damages sustained by a member of the public from an unlawful act of the officer or agent. However, coverage under the bond does not include damage to persons or property arising out of the negligent operation of a motor vehicle. The bond may be individual, schedule, or blanket and on a form approved by the Attorney General. The premiums on the bonds must be paid by the division.
  All officers and agents of the division shall take and subscribe to the oath provided by law for peace officers."

Assignment of personnel

SECTION 341. Section 23-3-25 of the 1976 Code is amended by adding:
  "Section 23-3-25. The Chief of the South Carolina Law Enforcement Division may assign personnel of the division to particular areas of enforcement as appropriate for the enforcement of the laws and regulations of this State which the South Carolina Law Enforcement Division is charged with enforcing. For this purpose, the chief may establish divisions within the department to carry out particular duties as assigned by the chief."

Reference deleted

SECTION 342. Section 23-3-160 of the 1976 Code is amended to read:

  "Section 23-3-160. In any accident involving injury or death of a person under the age of twenty-one, where there is cause to believe that any beverage containing alcohol was consumed prior to the accident by the person under twenty-one, the law enforcement agency having jurisdiction to investigate the accident shall commence a detailed investigation to determine the circumstances under which the beverage was obtained.
  Upon initiation of this investigation by the local investigating law enforcement agency, the South Carolina Law Enforcement Division shall assist in whatever capacity necessary to fully complete the inquiry and shall cooperate and assist in the prosecution of appropriate criminal charges against any person who provided a beverage containing alcohol to the person under twenty-one."

Department of Public Safety

SECTION 343. (A) Title 23 of the 1976 Code is amended by adding:

"CHAPTER 6

Department of Public Safety

Article 1

General Provisions

  Section 23-6-10. For the purposes of this title, the following words, phrases, and terms are defined as follows:
  (1) `Department' means the Department of Public Safety.
  (2) `Director' means the chief administrative officer of the Department of Public Safety.
  (3) `Deputy director' means the administrative head of a division of the department.

  Section 23-6-20. (A) The Department of Public Safety is established as an administrative agency of state government which is comprised of a Motor Vehicle Records and Vehicle Inspection Division, a South Carolina Highway Patrol Division, a South Carolina State Police Division, a Division of Public Safety, and a Division of Training and Continuing Education.
  (B) The functions, powers, duties, responsibilities, and authority statutorily exercised by the following offices, sections, departments, or divisions of the following state agencies as existing on the effective date of this act are transferred to and devolved on the department to include the South Carolina Highway Patrol, the Drivers Training Schools within the Department of Licensing of the Division of Motor Vehicles, the Driver Records Section within the Division of Motor Vehicles, the Financial Responsibility Section within the Division of Motor Vehicles, the Reciprocity Office of the Registration and Reciprocity Section within the Division of Motor Vehicles, the Vehicle Inspection Section within the Division of Motor Vehicles, the Administrative Services Section of the Division of Motor Vehicles and the Safety Office Section of the Division of Finance and Administration of the South Carolina Department of Highways and Public Transportation; the Safety Enforcement Officers of the Office of Enforcement within the Transportation Division of the South Carolina Public Service Commission, and the Governor's Office of Public Safety, together with all assets, liabilities, records, property, personnel, unexpended appropriations, and other funds shall be transferred to the control of the Department of Public Safety. All rules, regulations, standards, orders, or other actions of these entities shall remain in effect unless specifically changed or voided by the department in accordance with the Administrative Procedures Act, or otherwise provided.

  Section 23-6-30. The department shall have the following duties and powers:
  (1) carry out highway and other related safety programs;
  (2) license suspensions and revocations, including related administrative hearings;
  (3) maintain an automated system for the storage and retrieval of drivers licensing records;
  (4) engage in driver training and safety activities; (5) enforce the traffic, motor vehicle, commercial vehicle and related laws;
  (6) enforce size, weight and safety enforcement statutes relating to commercial motor vehicles;
  (7) operate a comprehensive law enforcement personnel training program;
  (8) promulgate such rules and regulations in accordance with the Administrative Procedures Act and Article 7 of this chapter for the administration and enforcement of the powers delegated to the department by law, which shall have the full force and effect of law;
  (9) operate such programs and disseminate information and material so as to continually improve highway safety;
  (10) disperse any grant funds made available to the department for purposes and in the manner provided for in this chapter; and
  (11) do all other functions and responsibilities as required or provided for by law.

  Section 23-6-40. (A) The Governor, with the advice and consent of the Senate, shall appoint the director of the department who shall serve a term of four years. The director may only be removed pursuant to the provisions of Section 1-3-240(C). He shall receive such compensation as may be established under the provisions of Section 8-11-160 and for which funds have been authorized in the annual general appropriation act. The term of office for the first appointment under the provisions of this section shall be February 1, 1994 for a term of two years. The Governor shall submit the name of his appointee to the Senate by December first of the year prior to the date on which the term begins. A person appointed by the Governor with the advice and consent of the Senate to fill a vacancy shall serve for the unexpired term only. This shall not prohibit the Governor from reappointing a person who is appointed to fill a vacancy as director of the department. All subsequent appointments shall be made in the manner of the original appointment for a term of four years.
  (B) The director must administer the affairs of the department and must represent the department in its dealings with other state agencies, local governments, special purpose districts, and the federal government. The director must appoint a deputy director for each division and employ such other personnel for each division and prescribe their duties, powers, and functions as he considers necessary and as may be authorized by statute and for which funds have been authorized in the annual general appropriation act.
  (C) The deputy director for each division shall serve at the pleasure of the director. Each deputy director may receive compensation as established under the provisions of Section 8-11-160 and for which funds have been authorized in the annual general appropriation act.

  Section 23-6-50. The director shall annually cause the department to be audited. The audit must be conducted by a certified public accountant or firm of certified public accountants to be selected by the State Auditor. The designated accountant or firm of accountants shall issue audited financial statements in accordance with generally accepted accounting principles, and such financial statements shall be made available annually by October fifteenth to the General Assembly. The costs and expenses of the audit must be paid by the department out of its funds.

Article 3

Highway Patrol Division

  Section 23-6-100. (A) There is created a South Carolina Highway Patrol Division and a South Carolina State Police Division within the Department of Public Safety. The South Carolina Highway Patrol Division shall have such troopers, officers, agents and employees as the department may deem necessary and proper for the enforcement of the traffic and other related laws, and the South Carolina State Police Division shall have such troopers, officers, agents and employees as the department may deem necessary and proper for the enforcement of the commercial motor carrier related laws, the enforcement of which is devolved upon the department. Such officers and troopers shall be commissioned by the Governor upon the recommendation of the Director of the Department of Public Safety. Such commissions may be terminated at the pleasure of the director.
  (B) The department must provide the officers of the Highway Patrol and of the State Police with distinctive uniforms and suitable arms and equipment for use in the performance of their duties. Such officers and troopers shall at all times, when in the performance of their duties, wear complete uniforms with badges conspicuously displayed on the outside of their uniforms.
  (C) The commanding officers of the South Carolina Highway Patrol and the South Carolina State Police respectively, with the approval of the director of the department, shall prescribe a unique and distinctive official uniform, with appropriate insignia to be worn by all officers when on duty and at such other times as the director shall order, and a distinctive color or colors and appropriate emblems for all motor vehicles used by the Highway Patrol and the State Police except those designated by the director. No other law enforcement agency, private security agency, or any person shall wear a similar uniform and insignia which may be confused with the uniform and insignia of the Highway Patrol or State Police. An emblem must not be used on a nondepartment motor vehicle, nor may such vehicle be painted in a color or in any manner which would cause the vehicle to be similar to a Highway Patrol or State Police vehicle or readily confused with it.
  (D) The director shall file with the Secretary of State and Legislative Council for publication in the State Register a description and illustration of the official highway patrol uniform with insignia and the emblems of the official highway patrol and motor vehicles including a description of the color of such uniforms and vehicles and a description and illustration of the official state police uniform with insignia and the emblems of the official state police and motor vehicles including a description of the color of such uniforms and vehicles.

  Section 23-6-110. In order to carry out the provisions of Section 23-6-100 in an orderly and economical manner it is intended that all serviceable uniforms be continued in use until such time as the director considers it necessary for them to be replaced. These provisions shall also apply to the emblems for motor vehicles.

  Section 23-6-120. Every officer and trooper commissioned pursuant to this chapter shall file a bond, or be covered by a surety bond, with the department in the amount of not less than two thousand dollars, subscribed by a duly licensed surety company, which shall be conditioned on the faithful performance of his duties. The duties include but are not limited to the prompt and proper accounting of all funds coming into his hands, the payment of any judgment recovered against him in any court of competent jurisdiction upon a cause of action arising out of breach or abuse of official duty or power, or the payment of damages sustained by any member of the public from any unlawful act of such officer or trooper. Coverage under such bond shall not include damage to persons or property arising out of the negligent operation of a motor vehicle. Such bond may be individual, schedule or blanket and on a form approved by the Attorney General. The premiums on such bonds shall be paid by the department.

  Section 23-6-130. Any violation of Section 23-6-100 may be enjoined by the court of common pleas upon petition of the director after due notice to the person violating the provisions of Section 23-6-100 and after a hearing on the petition.

  Section 23-6-140. The patrol of the highways of the State and the enforcement of the laws of the State relative to highway traffic, traffic safety, and motor vehicles shall be the primary responsibility of the troopers and officers of the South Carolina Highway Patrol. The troopers and officers of the State Police shall have the primary responsibility for the enforcement of laws relating to commercial motor carriers relating to size, weight, permits, licensing, and inspections for size and weight tolerance and safety. All officers and troopers shall have the same power to serve criminal processes against offenders as sheriffs of the various counties and also the same power as such sheriffs to arrest without warrants and to detain persons found violating or attempting to violate any laws of the State relative to highway traffic, motor vehicles or commercial motor carriers. These officers and troopers shall also have the same power and authority held by deputy sheriffs for the enforcement of the criminal laws of the State.

  Section 23-6-150. When any person is apprehended by a officer upon a charge of violating any laws of the State relative to highway traffic, motor vehicles or commercial motor carriers such person shall immediately be served with an official summons. The person charged may deposit bail with the arresting officer in lieu of being immediately brought before the proper magistrate, recorder, or other judicial officer to enter into a formal recognizance or make direct the deposit of a proper sum of money in lieu of a recognizance or incarceration. The apprehending officer may accept a sum of money as bail, not less than the minimum nor more than the maximum fine, but in no case to exceed two hundred dollars, to be in due course turned over to the judicial officer as money for bail. The bail deposited shall be in lieu of entering into a recognizance for his appearance for trial as set in the aforesaid summons or being incarcerated by the arresting officer and held for further action by the appropriate judicial officer. A receipt for the sum so deposited shall be given to such person by the arresting officer. The summons duly served as herein provided shall give the judicial officer jurisdiction to dispose of the matter. Upon receipt of the fixed sum of money the officer may release the person so charged as above provided for his further appearance before the proper judicial officer as provided for and required by the summons.

  Section 23-6-170. No officer or trooper may be promoted to a higher rank until such time as the council adopts a promotion policy for commissioned personnel and officers as provided for in Section 23-6-520.

Article 5

Division of Public Safety

  Section 23-6-200. There is created a Division of Public Safety for the development and implementation of safety-related programs. The primary goal of the division is to increase public awareness of safety issues. The goal of the division is to be measured by the collection, recording and maintenance of such statistical information as is necessary to determine the number and type of accidents, fatalities, driving under the influence (DUI) arrests and convictions, and compliance with posted speed limits and the annual increase or decrease thereof. The division shall coordinate the highway safety activities of the various agencies of the state and local governments, including evaluating and making recommendations to the director with respect to grant proposals and other programs submitted by state agencies and political subdivisions for federal and state funds in conjunction with the federal highway program. The division shall maintain current statistical information on motor vehicle accidents, injuries and deaths and their related causation factors, and shall publish this information annually, including any other public safety related information that the division may determine appropriate."

Article 7

Division of Motor Vehicle Records
and Vehicle Inspections

  Section 23-6-300. There is created a Division of Motor Vehicle Records and Vehicle Inspections. The division shall be responsible for all of those functions, duties and responsibilities exercised by and/or operating under the Motor Vehicle Inspection section, Financial Responsibility section, the Reciprocity Office of the Registration and Reciprocity section, and the Administrative Services section of the Department of Motor Vehicles, including all hearing officers of the Division of Motor Vehicles of the South Carolina Department of Highways and Public Transportation.

Article 9

Division of Training and Continuing Education

  Section 23-6-400. (A) There is created a Division of Training and Continuing Education to operate a training program for law enforcement officers and other persons employed in the criminal justice system in this State and to establish and maintain minimum standards in law enforcement selection and training.
  (B) It is the intent of this article to encourage all law enforcement officers, departments, and agencies within this State to adopt standards which are higher than the minimum standards implemented pursuant to this article, and these minimum standards in no way may be considered sufficient or adequate in those cases where higher standards have been adopted or proposed. Nothing herein may be construed to preclude an employing agency from establishing qualifications and standards for hiring or training law enforcement officers which exceed the minimum standards set by the council, hereinafter created, nor, unless specifically stated, may anything herein be construed to affect any sheriff, constable, or other law enforcement officer elected under the provisions of the Constitution of this State.
  (C) It is the intent of the General Assembly in creating a facility and a governing council to maximize training opportunities for law enforcement officers and criminal justice personnel, to coordinate training, and to set standards for the law enforcement and criminal justice service, all of which are imperative to upgrading law enforcement to professional status.
  (D) Whenever used in this article, and for the purposes of this article, unless the context clearly denotes otherwise:
    (1) `Law enforcement officer' means an appointed officer or employee hired by and regularly on the payroll of the State or any of its political subdivisions, who is granted statutory authority to enforce all or some of the criminal, traffic, and penal laws of the State and who possesses, with respect to those laws, the power to effect arrests for offenses committed or alleged to have been committed.
    (2) `Council' means the Law Enforcement Training Council created by this article.

  Section 23-6-410. The division must establish and maintain a central training facility which must be located near the geographical and population center of the State, and which shall provide facilities and training for all officers from state, county, and local law enforcement agencies and for other designated persons in the criminal justice system; provided, that correctional officers and other personnel employed or appointed by the South Carolina Department of Corrections may be trained by the department. The Deputy Director of the Division of Training and Continuing Education is responsible for selection of instructors, course content, maintenance of physical facilities, recordkeeping, supervision of personnel, scheduling of classes, enforcement of minimum standards for certification, and other matters as may be recommended by the council and approved by the Director of the Department of Public Safety.

  Section 23-6-420. (A) There is created a South Carolina Law Enforcement Training Council consisting of fourteen:
    (1) the Attorney General of South Carolina;
    (2) the Chief of the South Carolina Law Enforcement Division;
    (3) the Commanding Officer of the South Carolina Highway Patrol;
    (4) the Commanding Officer of the South Carolina State Police;
    (5) the Commanding Officer of the State Natural Resources Police;
    (6) the Director of the Department of Corrections;
    (7) the Dean of the University of South Carolina School of Law;
    (8) one chief of police from a municipality having a population of less than ten thousand; this person to be appointed by the Governor for a term of four years;
    (9) one chief of police from a municipality having a population of more than ten thousand; this person to be appointed by the Governor for a term of four years;
    (10) one county sheriff engaged in full-time performance of duties as a law enforcement officer; this person to be appointed by the Governor for a term of four years;
    (11) one person employed in the administration of any municipality or holding a municipal elective office; this person to be appointed by the Governor for a term of four years;
    (12) one person employed in the administration of county government or elected to a county governing body; this person to be appointed by the Governor for a term of four years;
    (13) the special agent in charge of the Federal Bureau of Investigation, Columbia Division;
    (14) the Director of the Department of Public Safety.
  (B)(1) The members provided for in (1) through (6) above are ex officio members with full voting rights.
    (2) The members provided for in (7) through (11) above shall serve terms as herein provided. In the event that a vacancy arises it must be filled for the remainder of the term in the manner of the original appointment or designation.
  (C) This council shall elect one of its members as chairman and one as vice-chairman; these shall serve a term of one year in this capacity and may be re-elected. The council shall meet at the call of the chairman or at the call of a majority of the members of the council, but no fewer than four times each year. The council shall establish its own procedures with respect to quorum, place, and conduct of meetings.
  (D) Members of the council shall serve without compensation.
  (E) A council member who terminates his holding of the office or employment which qualified him for appointment shall cease immediately to be a member of the council; the person appointed to fill the vacancy shall do so for the unexpired term of the member whom he succeeds.

  Section 23-6-430. No law enforcement officer employed or appointed on or after July 1, 1989, by any public law enforcement agency in this State is authorized to enforce the laws or ordinances of this State or any political subdivision thereof unless he has been certified as qualified by the council, except that any public law enforcement agency in this State may appoint or employ as a law enforcement officer, a person who is not certified if, within one year after the date of employment or appointment, the person secures certification from the council; provided, that if any public law enforcement agency employs or appoints as a law enforcement officer a person who is not certified, the person shall not perform any of the duties of a law enforcement officer involving the control or direction of members of the public or exercising the power of arrest until he has successfully completed a firearms qualification program approved by the council; and provided, further, that within three working days of employment the council must be notified by a public law enforcement agency that a person has been employed by that agency as a law enforcement officer, and within three working days of the notice the firearms qualification program as approved by the council must be provided to the newly hired personnel. If the firearms qualification program approved by the council is not available within three working days after receipt of the notice, then the public law enforcement agency making the request for the firearms qualification program may employ the person to perform any of the duties of a law enforcement officer, including those involving the control and direction of members of the public and exercising the powers of arrest. Should any such person fail to secure certification within one year from his date of employment, he may not perform any of the duties of a law enforcement officer involving control or direction of members of the public or exercising the power of arrest until he has been certified. He is not eligible for employment or appointment by any other agency in South Carolina as a law enforcement officer, nor is he eligible for any compensation by any law enforcement agency for services performed as an officer. Exceptions to the one-year rule may be granted by the council in these cases:
  (a) military leave or injury occurring during that first year which would preclude the receiving of training within the usual period of time; or
  (b) in the event of the timely filing of application for training, which application, under circumstances of time and physical limitations, cannot be honored by the training academy within the prescribed period; or
  (c) upon presentation of documentary evidence that the officer-candidate has successfully completed equivalent training in one of the other states which by law regulate and supervise the quality of police training and which require a minimum basic or recruit course of duration and content at least equivalent to that provided in this article or by standards set by the South Carolina Law Enforcement Training Council.

  Section 23-6-440. (A) At the request of any public law enforcement agency of this State the council is hereby authorized to issue certificates and other appropriate indicia of compliance and qualification to law enforcement officers or other persons trained under the provisions of this article. Members of the council may individually or collectively visit and inspect any training school, class, or academy dealing with present or prospective law enforcement officers, and are expected to promote the most efficient and economical program for police training, including the maximum utilization of existing facilities and programs for the purpose of avoiding duplication. The council may, at the request of the director, make recommendations to the General Assembly or to the Governor regarding the carrying out of the purposes, objectives, and intentions of this article or other acts relating to training in law enforcement.
  (B) All city and county police departments, sheriffs' offices, state agencies, or other employers of law enforcement officers having such officers as candidates for certification shall submit to the council, for its confidential information and subsequent safekeeping, the following:
    (1) an application under oath on a format prescribed by council;
    (2) evidence satisfactory to the council that the candidate has completed high school and received a high school diploma, equivalency certificate (military or other) recognized and accepted by the South Carolina Department of Education or South Carolina special certificate;
    (3) evidence satisfactory to council of the candidate's physical fitness to fulfill the duties of a law enforcement officer including:
      (a) a copy of his medical history compiled by a licensed physician or medical examiner approved by the employer;
      (b) a certificate of a licensed physician that the candidate has recently undergone a complete medical examination and the results thereof;
    (4) evidence satisfactory to the council that applicant has not been convicted of any criminal offense that carries a sentence of one year or more or of any criminal offense that involves moral turpitude. Forfeiture of bond, a guilty plea, or a plea of nolo contendere is considered the equivalent of a conviction;
    (5) evidence satisfactory to council that the candidate is a person of good character. This evidence must include, but is not limited to:
      (a) certification by the candidate's employer that a background investigation has been conducted and the employer is of the opinion that the candidate is of good character;
      (b) evidence satisfactory to council that the candidate holds a valid current South Carolina driver's license with no record during the previous five years for suspension of driver's license as a result of driving under the influence of alcoholic beverages or dangerous drugs, driving while impaired (or the equivalent), reckless homicide, involuntary manslaughter, or leaving the scene of an accident. Candidates for certification as Class II-SCO (Department of Corrections) in any county with a prison system that borders another State may hold a valid current driver's license issued by any jurisdiction of the United States;
      (c) evidence satisfactory to council that a local credit check has been made with favorable results;
      (d) evidence satisfactory to council that candidate's fingerprint record as received from the Federal Bureau of Investigation and South Carolina Law Enforcement Division indicates no record of felony convictions. In the council's determination of good character, council shall give consideration to all law violations, including traffic and conservation law convictions as indicating a lack of good character. The council shall also give consideration to the candidate's prior history, if any, of alcohol and drug abuse in arriving at its determination of good character;
    (6) a copy of candidate's photograph;
    (7) a copy of candidate's fingerprints;
    (8) evidence satisfactory to council that the candidate's present age is not less than twenty-one years. This evidence must include a birth certificate or another acceptable document;
    (9) evidence satisfactory to council of successful completion of a course of law enforcement training as established and approved by the council, and conducted at an academy or institution approved by the council, this evidence to consist of a certificate granted by the approved institution.
  (C) A certificate as a law enforcement officer issued by council will either expire three years from the date of issuance or upon discontinuance of employment by the officer with the employing entity or agency. The certification of any law enforcement officer issued by the council that is current on July 1, 1989 will expire in the year 1992 on the last day of the month during which it was issued, or upon discontinuance of employment with the employing entity or agency. Prior to the expiration of the certificate, the certificate may be renewed upon application presented to the council on a form prescribed by council. The application for renewal must be received by council at least forty-five days prior to the expiration of the certificate. If the officer's certificate has lapsed, council may reissue the certificate after receipt of an application and if council is satisfied that the officer continues to meet the requirements of subsections (B)(1) through (B)(9).
  (D) Council may accept for training as a law enforcement officer an applicant who has met requirements of subsections (B)(1) through (B)(8).

  Section 23-6-450. Subject to the approval of the director, the council is authorized to:
  (a) receive and disburse funds; including those hereinafter provided in this article;
  (b) accept any donations, contributions, funds, grants, or gifts from private individuals, foundations, agencies, corporations, or the state or federal governments, for the purpose of carrying out the programs and objectives of this article;
  (c) consult and cooperate with counties, municipalities, agencies, or official bodies of this State or of other states, other governmental agencies, and with universities, colleges, junior colleges, and other institutions, concerning the development of police training schools, programs, or courses of instruction, selection, and training standards, or other pertinent matters relating to law enforcement;
  (d) publish or cause to be published manuals, information bulletins, newsletters, and other materials to achieve the objectives of this article;
  (e) make recommendations on such regulations as may be necessary for the administration of this chapter, and advise the director to issue orders directing that public law enforcement agencies comply with this chapter and all regulations so promulgated;
  (f) certify and train qualified candidates and applicants for law enforcement officers and provide for suspension, revocation, or restriction of the certification, in accordance with regulations promulgated by department;
  (g) require all public entities or agencies that employ or appoint law enforcement officers to provide records in the format prescribed by regulation of employment information of law enforcement officers;
  (h) provide by regulation for mandatory continued training of certified law enforcement officers, this training to be completed within each of the various counties which request this training on a regional basis.

  Section 23-6-460. An oral or written report, document, statement, or other communication that is written, made, or delivered concerning the requirements or administration of this chapter or regulations promulgated under it must not be the subject of or basis for an action at law or in equity for slander or libel in any court of the State if the communication is between:
  (1) a law enforcement agency, its agents, employees, or representatives; and
  (2) the department or the council, its agents, employees, or representatives.

  Section 23-6-470. Every fine levied on a criminal or traffic violation in this State must have sums added to it which must be set apart and used for the division's program of training in the fields of law enforcement and criminal justice, and every bond for violations must have added the same amounts which must be set apart on forfeiture for the division's program of training, as follows:
  (a) Fines or forfeitures up to
        and including $99.00 $6.00
  (b) Fines or forfeitures
        above $99.00 up to and
        including $200.00 $25.00
  (c) Fines or forfeitures
        above $200.00 up to and
        including $500.00 $50.00
  (d) Fines or forfeitures
        above $500.00 up to and
        including $1,000.00 $100.00
  (e) Fines or forfeitures
        above $1,000.00 $200.00
  If a portion of the fine is suspended, the sum added to it as set forth in items (a) through (e) must be based upon the portion of the fine not suspended. In addition to the apportioned amounts set forth in items (a) through (e), twenty-five cents must be added to each fine or forfeiture and be paid over to the South Carolina Law Enforcement Training Council and all funds so collected shall be remitted by the department to the South Carolina Law Enforcement Hall of Fame Committee to defray the cost of erecting and maintaining the Hall of Fame. At any time when funds collected pursuant to this paragraph exceed the necessary costs and expenses of the Hall of Fame operation and maintenance as determined by the committee, the department may retain the surplus for use in its law enforcement training programs. The additional portion of fines added by this section for training programs and the South Carolina Law Enforcement Hall of Fame Committee must be assessed and collected by the respective courts or law enforcement officers, who are authorized by law to accept bond, and clearly identified as such on the judgment or bond.
  Every magistrate, recorder, judge, mayor, clerk of court, or other person who receives monies from fines or bond forfeitures in criminal or traffic cases shall transmit same to the city treasurer of the incorporated city where he performs his official duties, or to the county treasurer of his county in which he performs his official duties, making the transmittal no less frequently than once each month, and doing so on or before the tenth day of the month following the month being reported. The city treasurer or county treasurer shall make a computation on the basis of the scales of fines and forfeitures set out in this article, and this computed sum must be forwarded to the State Treasurer on or before the twentieth day of that month. Any incorporated municipality in this State may enter into a mutual agreement with the county in which it is located, to provide for joint collections, computations, and transmittals under the terms and conditions as the respective bodies may agree; in these cases, receipts and transmittals required by this article must reflect, in the report of transmittal to the State Treasurer, the collection and forwarding of all these monies from the named sources. The State Treasurer shall record, before the last day of that same month, the total monthly submissions of monies from the respective county treasurers and city treasurers, and shall deposit such monies in the account and to the credit of the Law Enforcement Building and Maintenance Fund, advising the department and the Law Enforcement Training Council of the receipts and deposits for fiscal and administrative purposes. The amount the above scale provides to be set apart and used for the program of training in the fields of law enforcement and criminal justice and for the South Carolina Law Enforcement Hall of Fame must be added to and be levied above the fine or forfeiture imposed.

  Section 23-6-480. (A) Whenever the council advises the director and finds that any public law enforcement agency is in violation of any provisions of this chapter, the director may issue an order requiring the public law enforcement agency to comply with the provision. The director may bring a civil action for injunctive relief in the appropriate court or may bring a civil enforcement action. Violation of any court order issued pursuant to this section must be considered contempt of the issuing court and punishable as provided by law. The director may also invoke the civil penalties as provided in subsection (B) for violation of the provisions of this chapter, including any order or regulation hereunder. Any public law enforcement agency against which a civil penalty is invoked by the director may appeal the decision to the Court of Common Pleas of the county where the public law enforcement agency is located.
  (B) Any public law enforcement agency which fails to comply with this chapter and regulations promulgated pursuant to this chapter or fails to comply with any order issued by the director is liable for a civil penalty not to exceed one thousand five hundred dollars a violation. When the civil penalty authorized by this subsection is imposed upon a sheriff, the sheriff is responsible for payment of this civil penalty.

  Section 23-6-490. When a municipality employs only one law enforcement officer and that officer is attending law enforcement training at the South Carolina Criminal Justice Academy as required by the provisions of Section 23-23-40, the sheriff of the county wherein the municipality is located, or the head of the entity in charge of countywide law enforcement if the county sheriff is not, shall provide systematic patrolling of the municipal area while its law enforcement officer is attending the training.

  Section 23-6-495. Whenever, in this article, the term `department' is used, it means the Department of Public Safety and whenever the term `division' is used, it means the Division of Training and Continuing Education of the Department of Public Safety.

Article 11

South Carolina Public Safety Coordinating Council

  Section 23-6-500. There is created a council to administer certain responsibilities of the Department of Public Safety and coordinate certain activities between the department, the South Carolina Law Enforcement Division and municipal and county law enforcement agencies. The council is to be known as the South Carolina Public Safety Coordinating Council.

  Section 23-6-510. The council is composed of the following persons for terms as indicated:
  (1) the Governor or his designee, to serve as chairman, for the term of the Governor;
(2) the Chief of the South Carolina Law Enforcement Division for the term of office for which he is appointed;
  (3) the Chairman of the Senate Judiciary Committee for his term of office in the Senate or his designee;
  (4) the Chairman of the House of Representatives Judiciary Committee for his term of office in the House of Representatives or his designee;
  (5) the Director of the Department of Public Safety;
  (6) a sheriff appointed by the Governor for the term of office for which he is elected;
  (7) a municipal police chief appointed by the Governor for a term of two years.
  Any vacancy occurring must be filled in the manner of the original appointment for the unexpired portion of the term.

  Section 23-6-520. The council has the following duties to:
  (1) recommend a hiring and promotion policy for commissioned personnel or officers to be administered under the sole authority of the director;
  (2) establish a process for the solicitation of applications for public safety grants and to review and approve the disbursement of funds available under Section 402 of Chapter 4 of Title 1 of the Federal Highway Safety Program, public law 89-564 in a fair and equitable manner;
  (3) coordinate the use of department personnel by other state or local agencies or political subdivisions;
  (4) advise and consult on questions of jurisdiction and law enforcement and public safety activities between the Department of Public Safety, the South Carolina Law Enforcement Division and law enforcement agencies of local political subdivisions.

  Section 23-6-530. The council may elect such other officers as it deems necessary from its membership and the members of the council shall serve without pay but are authorized, as eligible, to receive the usual per diem, mileage and subsistence provided for by law.

(B) The Budget and Control Board shall appoint an interim director for the Department of Public Safety who shall serve until February 1, 1994. Any person appointed as interim appointee by the Budget and Control Board shall not be eligible to be appointed as director by the Governor for the initial term of office which begins on February 1, 1994 and ends on January 31, 1996."

Appointment of State Fire Marshal

SECTION 344. Section 23-9-10 of the 1976 Code is amended to read:

  "Section 23-9-10. Effective July 1, 1979, the Office of State Fire Marshal is hereby transferred to the Budget and Control Board to operate as a division under the Office of Executive Director. The State Fire Marshal shall have all of the duties and responsibilities formerly exercised by the Chief Insurance Commissioner as State Fire Marshal, ex officio. The State Fire Marshal shall have a Master's Degree from an accredited institution of higher learning and at least four years experience in fire prevention and control or a Bachelor's Degree and eight years experience in fire prevention and control. The Governor shall appoint the State Fire Marshal."

Organization of Office of State Fire Marshal revised

SECTION 345. Section 23-9-10 of the 1976 Code is amended to read:

  "Section 23-9-10. The Office of the State Fire Marshal shall hereafter be administered as a division of the Department of Labor, Licensing & Regulation. A director of the Department of Labor, Licensing, and Regulation must be appointed by the governor pursuant to the provisions of Section 40-83-15. The division shall consist of such agents and employees, pursuant to Section 40-73-15, as the director of the department may deem necessarily proper for the enforcement of state and local fire safety codes and standards. The director of the department shall employ a State Fire Marshal, pursuant to Section 40-73-15, to supervise enforcement of the laws and personnel necessary to carry out the duties of this chapter. The State Fire Marshal shall have a Master's Degree from an accredited institution of higher learning and at least four years experience in fire prevention and control or a Bachelor's Degree and eight years experience in fire prevention and control."

Authority to enforce and promulgate regulations

SECTION 346. Section 23-9-60 of the 1976 Code is amended to read:

  "Section 23-9-60. The State Fire Marshal shall require conformance with the fire prevention and protection standards based upon nationally recognized standards as may be prescribed by law or regulation for the prevention of fires and the protection of life and property. The Division of the State Fire Marshal shall have the authority to promulgate fire prevention and protection regulations based upon nationally recognized standards for the protection of life and property of the residents of the State from fire."

Reference revised

SECTION 347. Section 23-9-65 of the 1976 Code is amended to read:

  "Section 23-9-65. Automatic fueling clips on self-service gasoline dispensers that are permitted in the National Fire Protection Association Pamphlet 30A, 1987 Edition, are permitted to be used in this State. The Division of the State Fire Marshal shall promulgate regulations necessary to implement the provisions of this section."

Appeal provisions revised

SECTION 348. Section 23-9-70 of the 1976 Code is amended to read:

  "Section 23-9-70. Whenever the State Fire Marshal, deputy or resident fire marshal shall find, pursuant to examination as provided in Section 23-9-50 of this chapter, any building or other structure which, for any cause, is especially liable to fire and which is so situated as to endanger lives or other property, or is deficient in fire or life protection, an order shall issue in writing directing the defect to be removed or remedied, service of such order shall be made as provided in this chapter and such occupant or owner shall forthwith comply with the terms thereof. If such order is issued by any deputy or resident fire marshal, such occupant or owner may, within twenty-four hours, appeal to the State Fire Marshal, who shall, within ten days, during which time the order appealed from shall be stayed, review the order and file his decision. Provided, however, that any person who feels himself aggrieved by any order or affirmed order of the State Fire Marshal may, within five days after the making or affirming of such order, appeal to an administrative law judge, as provided under Article 5 of Chapter 23 of Title 1, for review of such order and it shall be heard at the first convenient day. In the event a final order entered pursuant to this chapter is not complied with within a period of thirty days from date of service of such final order then the State Fire Marshal shall cause the hazard to be remedied by repair or demolition, and all offensive materials and dangerous conditions removed, at the joint and several expense of the occupant or owner of such building or premises. An itemized statement of costs and expenses shall be furnished the occupant or owner of the premises and the statement shall be satisfied within a period of thirty days, failing which, upon ten days further notice the State Fire Marshal may assess such costs and expenses. Any party aggrieved by an assessment order may appeal to an administrative law judge, as provided under Article 5 of Chapter 23 of Title 1, within a period of ten days from service of such order of assessment. Failing appeal, the order of assessment herein provided shall be filed with the clerk of court of the county wherein such property is located and shall be satisfied by execution and levy as a final judgment duly entered. Provided, however, that in addition to the enforcement procedures authorized in this section, the State Fire Marshal may, when a final order has been issued directing a defect to be removed or remedied and such order is not complied with within thirty days or a greater time if specified in such order, apply to an administrative law judge, as provided under Article 5 of Chapter 23 of Title 1, for an injunction to compel the defect to be removed or remedied and an administrative law judge, if it shall find, that such defect constitutes a dangerous hazard to life or property as set forth in this section, may exercise its injunctive powers to obtain compliance with the order of the State Fire Marshal."

Reference revised

SECTION 349. Section 23-9-90 of the 1976 Code is amended to read:

  "Section 23-9-90. In the conduct of any investigation into the cause, origin, or loss resulting from any fire, the State Fire Marshal shall have the same power and rights relative to securing the attendance of witnesses and the taking of testimony under oath as is conferred upon the Director of the Insurance Department or his designee under Section 38-3-180. False swearing by any such witness shall be deemed to be perjury and shall be subject to punishment as such."

Appeal provisions revised

SECTION 350. Section 23-9-150 of the 1976 Code is amended to read:

  "Section 23-9-150. All buildings or structures referred to in Section 23-9-40, except single-family dwellings, duplexes or one-story rooming houses, which are unsafe or not provided with adequate egress, or which constitute a fire hazard or are otherwise dangerous to human life, or which in relation to existing use constitute a hazard to safety or health by reason of inadequate maintenance, dilapidation, obsolescence, or abandonment are, severally in contemplation of this section, unsafe buildings. The use and occupancy of all such unsafe buildings is hereby declared illegal and such unsafe conditions shall be corrected by repair, rehabilitation or demolition in accordance with the following procedure:
  (1) Whenever the State Fire Marshal shall find any building or structure or portion thereof to be unsafe, as defined in this section, he shall give the owner, agent or person in control of such building or structure written notice, stating the defects found to exist. The notice shall require the owner within a reasonable time as determined by the marshal to either complete specified repairs or improvements, or to demolish and remove the building or structure, or unsafe portion thereof. If necessary, such notice shall also require the building, structure or portion thereof to be vacated forthwith and not reoccupied until the specified repairs and improvements are completed, inspected and approved by the State Fire Marshal.
  (2) The marshal shall cause to be posted at each entrance to such building a notice as follows: `THIS BUILDING IS UNSAFE AND ITS USE OR OCCUPANCY HAS BEEN PROHIBITED BY THE STATE FIRE MARSHAL.' Such notice shall remain posted until the required repairs are made or demolition is completed. It shall be unlawful for any person, firm or corporation, or its agents, to remove such notice without written permission of the State Fire Marshal, or for any person to enter the building except for the purpose of making the required repairs or demolishing such building.
  (3) The owner, agent or person in control of any building subject to repair may appeal any decision of the Fire Marshal to an administrative law judge, as provided under Article 5 of Chapter 23 of Title 1. Emergency decisions of the fire marshal are not stayed pending appeal.
  (4) If the owner, agent or person in control of a property cannot be found within the stated time limit or, if such owner, agent or person in control shall after notice fail, neglect or refuse to comply with notice to repair, rehabilitate, demolish or remove the building or structure or portion thereof, the State Fire Marshal shall cause such building, structure or portion thereof to be vacated and secured."

Reference changed

SECTION 351. Section 23-9-155 of the 1976 Code is amended to read:

  "Section 23-9-155. Every dwelling unit within an apartment house having no fire protection system must be provided with an approved listed smoke detector, installed in accordance with the manufacturer's recommendation and listing. The smoke detector must be mounted on the ceiling or wall at a point centrally located in the corridor or area giving access to each group of rooms used for sleeping purposes. Where the dwelling unit contains more than one story, detectors are required on each story including cellars and basements, but not including uninhabitable attics. In dwelling units with split levels, a smoke detector must be installed only on the upper level, if the lower level is less than one full story below the upper level, except that if there is a door between levels then a detector is required on each level. Detectors must be connected to a sounding device or other detector to provide an alarm which must be audible in the sleeping areas. Smoke detectors must be listed and meet the installation requirements of National Fire Protection Association Standard 72A and National Fire Protection Association Standard 74. If the smoke detector malfunctions, and the malfunctioning is caused by the tenant's intentional or negligent act, the landlord is not liable for damage caused by the malfunctioning of the device if the fire causing the damage is not the result of the landlord's intentional or negligent act. If the smoke detector malfunctions, and the malfunctioning is caused by the negligent production of the device, the landlord is not liable for damage caused by the malfunctioning if the landlord had no knowledge of the defective condition and exercised reasonable care in the acquisition and installation of the device, and if the fire causing the damage is not the result of the landlord's intentional or negligent act. The Division of the State Fire Marshal shall promulgate regulations to carry out the provisions of this section. Notwithstanding any other provision of law, this section shall take effect one year after approval by the Governor."

Judicial reference revised

SECTION 352. Section 23-9-170 of the 1976 Code is amended to read:

"Section 23-9-170. Any person who interferes with the action of the Fire Marshal or his agents in the enforcement of his orders shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined not more than one hundred dollars or imprisoned for not more than thirty days.
  The Fire Marshal is further authorized to obtain injunctive relief from an administrative law judge pursuant to Article 5 of Chapter 23 of Title 1 to prevent interference with his orders or the implementation thereof."

Judicial reference revised

SECTION 353. Section 23-9-180 of the 1976 Code is amended to read:

  "Section 23-9-180. The orders of the Fire Marshal in a situation determined by him to be an emergency and dangerous to public safety shall not be stayed by order of an administrative law judge pursuant to Article 5 of Chapter 23 of Title 1 pending a hearing on the merits of an appeal from such an order."
Appointing and supervisory authorities revised

SECTION 354. Section 23-9-210 of the 1976 Code is amended to read:

  "Section 23-9-210. There is created the State Arson Control Program (program) under the office of the State Fire Marshal which shall provide administrative and logistical support to the program.
  The State Arson Control Program shall have an advisory committee which must be composed of six members appointed by the Governor for terms of four years each and until their successors are appointed and qualify, except that of those members first appointed, three must be appointed for terms of two years each. One member must be a law enforcement officer, one must be engaged in fire service, one must be a chemist, one must be an insurance agent, one must be a member of the general public representing the consumer, and one must be employed by an insurer licensed to do business in this State. Vacancies on the committee must be filled for the remainder of the unexpired term in the same manner of original appointment.
  This committee shall submit to the Director of the Department of Labor, Licensing & Regulation an annual report which is prepared by the office of the State Fire Marshal concerning the operation and effectiveness of the State Arson Control Program.
  The State Law Enforcement Division shall contract with the office of the State Fire Marshal to provide all necessary laboratory services and analyses for the program."

References changed and membership revised

SECTION 355. Section 23-10-10 of the 1976 Code is amended to read:

  "Section 23-10-10. The State Fire Marshal shall have sole responsibility for the operation of the South Carolina Fire Academy (Academy). The Academy is operated for the express purpose of upgrading the state's fire service personnel-paid, volunteer, and industrial. All buildings, facilities, equipment, property, and instructional materials which are now or become a part of the Academy shall remain assigned to the Academy and may not be integrated with any other local or state agency, association, department, or technical education center, without the consent of the Director of the Department of Licensing, or his designee.
  There is created the South Carolina Fire Academy Advisory Committee which shall advise and assist the State Fire Marshal in developing a comprehensive training program based upon the needs of the fire service in this State. Membership on the committee shall include:
  (A) the Chairman and appointed members of the Fire School Committee of the South Carolina State Firemen's Association. The Chairman of the Fire School Committee also shall serve as the Chairman of the South Carolina Fire Academy Advisory Committee;
  (B) one member from the South Carolina Fire Chief's Association appointed by the president;
  (C) one member from the South Carolina Fire Inspectors Association appointed by the president;
  (D) one member from the South Carolina Society of Fire Service Instructors Association appointed by the president;
  (E) one member from the Professional Firefighters Association appointed by the president;
  (F) one member from the South Carolina Chapter of International Association of Arson Investigators appointed by the president;
  (G) the Director of the South Carolina Fire Academy who shall serve as secretary without voting privileges. Membership from the South Carolina Fire Academy is limited to the director only;
  (H) one industrial fire protection representative appointed by the president of the South Carolina Chapter of the American Society of Safety Engineers;
  (I) the Executive Director of the South Carolina State Firemen's Association who shall serve as a member ex officio without voting privileges;
  (J) the State Fire Marshal as ex officio without voting privileges;
  (K) one member from higher education having experience and training in curriculum development appointed by the Director of the Department of Labor, Licensing and Regulation."

References revised

SECTION 356. Section 23-23-30(A)(4) of the 1976 Code is amended to read:

  "(4) the Director of the South Carolina Department of Natural Resources;"

Organization of Hall of Fame and membership of committee

SECTION 357. Section 23-25-20 of the 1976 Code is amended to read:
  "Section 23-25-20. (A) The South Carolina Hall of Fame shall hereafter be administered as a division of the Department of Public Safety.
  (B) To plan, enact, and administer the Hall of Fame, there is hereby created the Law Enforcement Officers Hall of Fame Committee. The committee shall consist of the following ex officio members:
    (1) the Chief of the South Carolina Law Enforcement Division, who shall serve as chairman;
    (2) the commanding officer of the Highway Patrol and the commanding officer of the State Police;
    (3) the Director of the Department of Corrections;
    (4) the Secretary of the South Carolina Sheriffs' Association;
    (5) the Executive Director of the South Carolina Law Enforcement Officers Association;
    (6) the President of the South Carolina Police Chiefs' Association, or his designee;
    (7) a representative of the Division of Natural Resources Police, to be appointed by the Director of the Department of Natural Resources; and
    (8) the Director of the Department of Public Safety.
  (C) All members of the committee may designate persons to represent them at meetings they are unable to attend."

Procedures of committee

SECTION 358. Section 23-25-40 of the 1976 Code is amended to read:

  "Section 23-25-40. The committee shall establish procedures and regulations for the nomination of members of the Hall of Fame. All selections of persons for Hall of Fame membership shall be made by a majority vote of the total membership of the committee.
  Meetings of the committee shall be held at least quarterly, and more frequently at the call of the chairman. The committee shall establish its own rules of procedure. Members shall not receive compensation for their services with the committee but shall be allowed the usual mileage, per diem and subsistence provided by law for boards, committees and commissions. The committee is authorized to employ clerical assistance as the director deems necessary to perform its functions as prescribed in this chapter from funds made available as provided in Section 23-23-70."

References revised

SECTION 359. Section 23-28-120 of the 1976 Code is amended to read:

  "Section 23-28-120. The provisions of this chapter shall not apply to deputy enforcement officers of the Natural Resources Enforcement Division of the South Carolina Department of Natural Resources."

References revised

SECTION 360. Section 23-31-140(A)(5) and (F) of the 1976 Code are amended to read:

    "(5) South Carolina driver's license number or Department of Revenue and Taxation identification card number or, in the case of an applicant on active duty in the United States military, the number from the applicant's current United States military identification card;
  (F) No person may purchase a pistol from a dealer unless he is a resident of this State. For the purpose of this article, the possession of a valid South Carolina driver's license or Department of Revenue and Taxation identification card constitutes proof of residency. However, residency is not required of a person who is on active duty in the United States military and who is in possession of a current United States military identification card."

Name change

SECTION 361. Section 23-33-20 of the 1976 Code is amended to read:

  "Section 23-33-20. Before any person shall fire or attempt to fire or discharge any missile within the borders of this State, he shall first procure a written permit from the Aeronautics Division of the Department of Commerce on such form as it may prescribe."

Reference revised

SECTION 362. Section 23-35-70(3) of the 1976 Code is amended to read:

  "(3) Each retailer is required to procure an annual license or permit at a cost of fifty dollars which shall authorize the licensee to sell permissible fireworks. The license or permit must be obtained from the municipal clerk, or comparable municipal official, for retail sales within a municipality, after approval of the applicant and his place of business by the municipal fire chief serving such municipality; or, from the county clerk of court for retail sales in the county outside a municipality after approval of the applicant and his place of business by the county sheriff. No permit may be issued to an applicant until the premises where the fireworks are to be kept for the purpose of sale have been inspected and it is determined that the building and the facilities within the building meet safety standards for the storage and sale of permissible fireworks. The issuance of the permit is subject to regulations promulgated by the State Board of Pyrotechnic Safety governing the storage, safekeeping, and sale of fireworks. No person or firm may be issued a retail license who is not already licensed by the State Department of Revenue and Taxation for sales tax purposes and who has not held the sales tax license for at least sixty days. Permits issued to retailers must be prominently displayed. No permit provided for herein may be transferred nor shall a person be permitted to operate under a permit issued to any other person."

Reference revised

SECTION 363. Section 23-35-140 of the 1976 Code is amended to read:

  "Section 23-35-140. Notwithstanding any other provisions of law, the Division of the State Fire Marshal shall issue rules and regulations regarding the storage, transportation, sale and use of permissible fireworks within this State. Such regulations may prescribe, but shall not be limited to, quantity of fireworks that may be kept, the manner of transporting fireworks within the State, the type of buildings or structures where such fireworks may be kept, sold or used, the manner of storage of fireworks within such buildings or structures and such other matters that may be necessary to protect lives and property. Violations of such regulations when duly promulgated shall be punished as provided for in Section 23-35-150."

Name and judicial reference revised

SECTION 364. Section 23-36-80 of the 1976 Code is amended to read:
  "Section 23-36-80. The Division of the State Fire Marshal shall promulgate regulations setting forth minimum general standards covering the use, sale, handling, and storage of explosive materials. The regulations must be in substantial conformity with generally accepted standards of safety concerning these subject matters. Regulations in substantial conformity with the published rules and suggested standards of the Institute of Makers of Explosives are considered in substantial conformity with accepted standards of safety. All procedures with regard to the revocation, suspension, or denial of licenses and permits shall be handled by an administrative law judge as provided under Article 5 of Chapter 23 of Title 1. The State Fire Marshal is the enforcement authority of this chapter."

Employment provisions revised

SECTION 365. Section 23-36-160 of the 1976 Code is amended to read:

  "Section 23-36-160. The Director of the Department of Labor, Licensing & Regulation, pursuant to Section 40-73-15, may employ such personnel as may be necessary to carry out the provisions of this chapter. The agents employed by the Division of the State Fire Marshal shall have statewide authority, the power of arrest, and all other powers and authority of duly certified law enforcement officers of the State."

References revised

SECTION 366. Section 23-41-30(c) of the 1976 Code is amended to read:

  "(c) When an insurance company denies payment of a claim to an insured on grounds of arson, false swearing, material misrepresentation, fraud, or similar claim or defense such insurer shall in all cases notify in writing the Director of the Department of Insurance. The Director of the Department of Insurance may notify, after the investigation, an authorized agency if he considers the action to be appropriate."

Reference revised

SECTION 367. Section 23-41-30(f) of the 1976 Code is amended to read:
  "(f) Any insurance company or authorized agency which notifies the Director of the Department of Insurance or provides or releases information, whether oral or written, and any person acting in their behalf, pursuant to this chapter is immune from any liability arising out of such notification or release."

Definition deleted

SECTION 368. Section 23-43-20 of the 1976 Code is amended to read:

  "Section 23-43-20. As used in this chapter:
  (1) `Council' means the South Carolina Building Codes Council as established by Section 6-9-60.
  (2) `Modular building unit' means any building of closed construction, regardless of type of construction or occupancy classification, other than a mobile or manufactured home, constructed off-site in accordance with the applicable codes, and transported to the point of use for installation or erection.
  (3) `Installation' means the assembly of modular building structures on-site and the process of affixing modular buildings related components to land, a foundation, footings, utilities, or an existing building.
  (4) `Local government' means any political subdivision of the State with authority to establish standards and requirements applicable to the construction, installation, alteration, and repair of buildings.
  (5) `Mobile home' or `manufactured home' means any residential dwelling unit constructed to standards and codes as promulgated by the United States Department of Housing and Urban Development.
  (6) `Approved inspection agency' means an agency approved by the council to provide plan review and approval, evaluation, and inspection in addition to adequate follow-up services at the point of manufacture to insure that production units are in full compliance with the provisions of this chapter.
  (7) `Point of manufacture' means the place of business at which machinery, equipment, and other capital goods are assembled and operated for the purpose of fabricating, constructing, or assembling modular building units.
  (8) `Fees' means monies to be paid to the council from any person engaged in the manufacture, inspection, or installation of modular building units.
  (9) `Certification' means conforming to the regulations of the council.
  (10) `Certification label' means the approved form of certification by the council issued to the manufacturer that is permanently affixed to each transportable section of each factory-built modular structure for sale within the State."

Reference revised

SECTION 369. Section 23-43-70 of the 1976 Code is amended to read:

  "Section 23-43-70. The council shall have printed all regulations prescribing standards for modular building units, and they must be furnished upon request to the public."

Name and review provisions revised

SECTION 370. Section 23-43-110 of the 1976 Code is amended to read:

  "Section 23-43-110. The council shall suspend or revoke, or cause to be suspended or revoked, the certification of any modular building unit which the council finds not to comply with this chapter or regulations promulgated by authority of this chapter, or which has been manufactured pursuant to a building system or compliance assurance program as to which approval has been suspended or revoked, or which has been altered after certification. If the manufacturer fails to comply with a corrective order, labels of certification must be removed from any modular building unit until it is brought into compliance with this chapter and applicable regulations. Notice of suspension or revocation of certification must be in writing with the reasons for suspension or revocation set forth. Suspensions or revocations may be appealed to the Modular Buildings Board of Appeals. Any decision by the board to suspend, revoke, or otherwise restrict the certification of any modular building unit shall be by majority vote and shall be subject to review by an administrative law judge as provided under Article 5 of Chapter 23 of Title 1."

Examination of modular building unit

SECTION 371. Section 23-43-140 of the 1976 Code is amended to read:

  "Section 23-43-140. Any member, officer or agent of the Building Council may at all reasonable hours enter any modular building unit, upon complaint of any person having a direct interest therein, for examination as to compliance with the regulations of the council. Whenever the officer finds any violation of the regulations, he shall order the manufacturer to bring the unit into compliance, within a reasonable time, to be fixed in the order. If the manufacturer feels aggrieved by the order, it may, within ten days after receipt, appeal to the Modular Buildings Board of Appeals. The manufacturer's complaint must be reviewed by the Modular Buildings Board of Appeals. Unless a variance is granted, the order shall remain in force and must be complied with by the manufacturer."

Judicial procedures revised

SECTION 372. Section 23-43-180 of the 1976 Code is amended to read:

  "Section 23-43-180. The council may obtain injunctive relief from an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 to enjoin the sale, delivery, or installation of modular building units or of buildings utilizing such components, for which certification is required under this chapter, upon an affidavit of the council specifying the manner in which the modular building units do not conform to the requirements of this chapter or applicable regulations. The council may obtain injunctive relief from an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 to enjoin any local government from promulgating, adopting, or enforcing any ordinance, rules, regulations, or construction codes and standards for modular building units which are not consistent with this chapter."

Board of Corrections abolished, department restructured

SECTION 373. Section 24-1-40 of the 1976 Code is amended to read:

  "Section 24-1-40. The department shall be governed by a director appointed by the Governor with the advice and consent of the Senate. Any vacancy occurring for any cause shall be filled by the Governor in the manner provided for by law for the unexpired term. The director shall be subject to removal from office as provided in Section 1-3-240."

Additional duties of director

SECTION 374. Section 24-1-90 of the 1976 Code is amended to read:

  "Section 24-1-90. The director shall have authority to make and promulgate rules and regulations necessary for the proper performance of the department's functions."

Department director qualifications

SECTION 375. Section 24-1-100 of the 1976 Code is amended to read:

  "Section 24-1-100. The director shall possess qualifications and training which suit him to manage the affairs of a modern penal institution."

Board functions eliminated

SECTION 376. Section 24-1-110 of the 1976 Code is amended to read:

  "Section 24-1-110. The duty of the director shall extend to the employment and discharge of such persons as may be necessary for the efficient conduct of the prison system."

Board functions eliminated

SECTION 377. Section 24-1-120 of the 1976 Code is amended to read:

  "Section 24-1-120. The director shall execute a good and sufficient bond payable to the State in the sum of fifty thousand dollars, conditioned for the faithful performance of the duties of his office and the accurate accounting for all moneys and property coming into his hands; and he may require of other officers, employees and agents of the prison system a good and sufficient bond in such sum as it may determine upon, payable to the State upon like conditions. Such bonds shall be executed by a surety company authorized to do business under the laws of this State, and the premium on any such bond shall be paid by the State out of the support and maintenance fund of the prison system."

Director controls department

SECTION 378. Section 24-1-130 of the 1976 Code is amended to read:

  "Section 24-1-130. The director shall be vested with the exclusive management and control of the prison system, and all properties belonging thereto, subject to the limitations of Sections 24-1-20 to 24-1-230 and 24-1-260 and shall be responsible for the management of the affairs of the prison system and for the proper care, treatment, feeding, clothing, and management of the prisoners confined therein. The director shall manage and control the prison system."

Power of director

SECTION 379. Section 24-1-140 of the 1976 Code is amended to read:

  "Section 24-1-140. The director shall have power to prescribe reasonable rules and regulations governing the humane treatment, training, and discipline of prisoners, and to make provision for the separation and classification of prisoners according to sex, color, age, health, corrigibility, and character of offense upon which the conviction of the prisoner was secured."

Power transferred to director

SECTION 380. Section 24-1-145 of the 1976 Code is amended to read:

  "Section 24-1-145. Notwithstanding any other provisions of law, when any treaty between the United States and a foreign country provides for the transfer or exchange of convicted offenders to the country of which they are citizens or nationals, the Governor, on behalf of this State, shall be authorized, subject to the terms of such treaty, to permit the Director of the Department of Corrections to transfer or exchange offenders and take any other action necessary to participate in such treaty."

Power transferred to director

SECTION 381. Section 24-1-150 of the 1976 Code is amended to read:
  "Section 24-1-150. Annually the director shall cause a full and complete inventory of all property of every description belonging to the prison system to be made, and there shall be set opposite each item the book and actual market value of same. Such inventory shall further include a statement of the fiscal affairs of the system for the preceding fiscal year; and a sufficient number of copies of such inventory and report shall be printed to give general publicity thereto."

Board functions eliminated

SECTION 382. Section 24-1-160 of the 1976 Code is amended to read:

  "Section 24-1-160. The director shall have power to require all necessary reports from any department, officer, or employee of the prison system at stated intervals."

Power transferred to director

SECTION 383. Section 24-1-170 of the 1976 Code is amended to read:

  "Section 24-1-170. The director shall keep, or cause to be kept, correct and accurate accounts of each and every financial transaction of the prison system, including all receipts and disbursements of every character. He shall receive and receipt for all money paid to him from every source whatsoever, and shall sign all warrants authorizing any disbursement of any sum or sums on account of the prison system. He shall keep full and correct accounts with any industry, department and farm of the prison system, and with all persons having financial transactions with the prison system."

Power transferred to director

SECTION 384. Section 24-1-200 of the 1976 Code is amended to read:

  "Section 24-1-200. The director shall inquire and examine into the sentences under which the convicts in the prison are confined and also into the condition, physical or otherwise, of the convicts undergoing sentence and shall report to the Probation, Parole and Pardon Board quarterly, on the first day of November, February, May, and August in each year, such cases as it may deem, after such examination, fit subjects for clemency."

Power transferred to department

SECTION 385. Section 24-1-210 of the 1976 Code is amended to read:

  "Section 24-1-210. The department shall prosecute all violations of the law in reference to the treatment of convicts."

Various powers transferred

SECTION 386. Section 24-1-220 of the 1976 Code is amended to read:

  "Section 24-1-220. All actions or suits at law accruing to the department shall be brought in the name of the director, who shall also appear for and defend actions or suits at law in which it is to the interest of the department to appear as a party defendant. No suit or action at law shall be brought for or defended on behalf of the department except by authority of the director."

Function transferred to department

SECTION 387. Section 24-1-230 of the 1976 Code is amended to read:

  "Section 24-1-230. The Department of Corrections may purchase or condemn lands for the construction of any building or sewerage or water line essential to the operation of the prison system."

Function transferred to director

SECTION 388. Section 24-1-250 of the 1976 Code is amended to read:

  "Section 24-1-250. The State Department of Corrections is hereby authorized to sell mature trees and other timber suitable for commercial purposes from lands owned by the department. However, the proceeds derived from these sales shall not exceed fifty thousand dollars in any one year. Prior to such sales, the director shall consult with the State Forester to determine the economic feasibility of and obtain approval for such sales. Funds derived from timber sales shall be utilized by the Department of Corrections to maintain and expand the agricultural program subject to the approval of the Budget and Control Board."

Grammatical changes

SECTION 389. Section 24-1-260 of the 1976 Code is amended to read:

  "Section 24-1-260. The Department of Corrections is hereby authorized to retain all fees collected in connection with the clinical pastoral training program conducted by the department for use in the continued operation of that program."

Name change

SECTION 390. Section 24-1-270 of the 1976 Code is amended to read:

  "Section 24-1-270. (1) As used in this section, the term `state correctional properties' shall include all property under the control of the Director of the South Carolina Department of Corrections, or his agents, for the confinement of inmates or other uses pursuant to the director's responsibilities.
  (2) Notwithstanding any other provisions of law relating to trespass, it shall be unlawful for any person to:
    (a) trespass or loiter on state correctional properties after notice to leave is given by the director or his authorized agents or, after lawful entry, refuse to leave the premises after such notice; or
    (b) incite, solicit, urge, encourage, exhort, instigate or procure any other person to violate the provisions of item (a) of this subsection.
  (3) Any person violating the provisions of this section shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined not exceeding five thousand dollars or imprisoned for a term not exceeding five years, or both.
  (4) The provisions of this section shall not be construed to bar prosecution of other offenses committed on state correctional property."

Powers transferred

SECTION 391. Section 24-3-20 of the 1976 Code is amended to read:

  "Section 24-3-20. (a) Notwithstanding the provisions of Section 24-3-10, any person convicted of an offense against the State of South Carolina and committed to the State Penitentiary at Columbia shall be in the custody of the Department of Corrections of the State of South Carolina, and the director shall designate the place of confinement where the sentence shall be served. The director may designate as a place of confinement any available, suitable, and appropriate institution or facility, including a county jail or prison camp, whether maintained by the State Department of Corrections or otherwise. Provided, that if the facility is not maintained by the department, the consent of the sheriff of the county wherein the facility is located must first be obtained.
  (b) When the director determines that the character and attitude of a prisoner reasonably indicates that he may be so trusted, it may extend the limits of the place of confinement of the prisoner by authorizing him to work at paid employment or participate in a training program in the community on a voluntary basis while continuing as a prisoner, provided that the director determines that:
    (1) such paid employment will not result in the displacement of employed workers, nor be applied in skills, crafts, or trades in which there is surplus of available gainful labor in the locality, nor impair existing contracts for services; and
    (2) the rates of pay and other conditions of employment will not be less than those paid and provided for work of similar nature in the locality in which the work is to be performed.
  (c) Notwithstanding the provisions of Section 24-3-10 or any other provisions of law, the department shall make available for use in litter control and removal any or all prison inmates not engaged in programs determined by the department to be more beneficial in terms of rehabilitation and cost effectiveness. Provided, however, that the Department of Corrections shall not make available for litter control those inmates who, in the judgment of the director, pose a significant threat to the community or who are not physically, mentally or emotionally able to perform work required in litter control. No inmate shall be assigned to a county prison facility except upon written acceptance of the inmate by the chief county administrative officer or his designee and no prisoner may be assigned to litter control in a county which maintains a facility unless he is assigned to the county prison facility. The Department of Corrections shall include in its annual report to the Budget and Control Board an analysis of the job and program assignments of inmates. This plan shall include such programs as litter removal, prison industries, work release, education and counseling. The Department of Corrections shall make every effort to minimize not only inmate idleness but also occupation in marginally productive pursuits. The State Budget and Control Board and the Governor's Office shall comment in writing to the department concerning any necessary alterations in this plan.
  (d) The Department of Corrections may establish a Restitution Program for the purpose of allowing persons convicted of nonviolent offenses who are sentenced to the State Department of Corrections to reimburse the victim for the value of the property stolen or damages caused by such offense. In the event that there is no victim involved, the person convicted shall contribute to the administration of the program. The Department of Corrections is authorized to promulgate regulations necessary to administer the program.
  (e) In the event that a person is sentenced to not more than seven years and for not more than a second offense for the following offenses: larceny, grand larceny, forgery and counterfeiting, embezzlement, stolen property, damage to property, receiving stolen goods, shoplifting, housebreaking, fraud, vandalism, breach of trust with fraudulent intent, and storebreaking, the judge shall establish at the time of sentencing a maximum amount of property loss which may be used by the South Carolina Department of Corrections in the administration of the restitution program."

Board powers transferred to department or director

SECTION 392. Section 24-3-30 of the 1976 Code is amended to read:

  "Section 24-3-30. Notwithstanding the provisions of Section 24-3-10 of the 1976 Code, or any other provision of law, any person convicted of an offense against the State shall be in the custody of the Department of Corrections of the State, and the department shall designate the place of confinement where the sentence shall be served. The department may designate as a place of confinement any available, suitable and appropriate institution or facility, including but not limited to a county jail or work camp whether maintained by the State Department of Corrections or otherwise, but the consent of the officials in charge of the county institutions so designated shall be first obtained. Provided, that if imprisonment for three months or less is ordered by the court as the punishment, all persons so convicted shall be placed in the custody, supervision and control of the appropriate officials of the county wherein the sentence was pronounced, if such county has facilities suitable for confinement. Provided, further, that the Department of Corrections shall be notified by the county officials concerned not less than six months prior to the closing of any county prison facility which would result in the transfer of the prisoners of the county facility to facilities of the department.
  Each county administrator, or the equivalent, having charge of county prison facilities, may, upon the department's designating the county facilities as the place of confinement of a prisoner, use the prisoner assigned thereto for the purpose of working the roads of the county or other public work. Any prisoner so assigned to the county shall be under the custody and control of the administrator or the equivalent during the period to be specified by the director at the time of the prisoner's assignment, but the assignment shall be terminated at any time the director determines that the place of confinement is unsuitable or inappropriate, or that the prisoner is employed on other than public works. If, upon termination of the assignment, the prisoner is not returned, habeas corpus will lie."

Board powers transferred to department or director

SECTION 393. Section 24-3-40 of the 1976 Code is amended to read:

  "Section 24-3-40. The employer of a prisoner authorized to work at paid employment in the community under Sections 24-3-20 to 24-3-50 shall pay the prisoner's wages directly to the Department of Corrections. The Director of the Department of Corrections shall withhold five percent of the gross wages and promptly place these funds on deposit with the State Treasurer for credit to a special account to support victim assistance programs established pursuant to the `Victims of Crime Act of 1984, Public Law 98-473, Title II, Chapter XIV, Section 1404'. The director is further authorized to withhold from the wages such costs incident to the prisoner's confinement as the Department of Corrections considers appropriate and reasonable. These withholdings must be deposited to the maintenance account of the Department of Corrections. The balance of the wages may, in the discretion of the director, and in such proportions determined by the director, be disbursed to the prisoner, the prisoner's dependents, to the victim of the crime, or deposited to the credit of the prisoner."

Name change

SECTION 394. Section 24-3-60 of the 1976 Code is amended to read:

  "Section 24-3-60. The clerks of the courts of general sessions and common pleas of the several counties in this State shall immediately after the adjournment of the court of general sessions, in their respective counties, notify the Department of Corrections of the number of convicts sentenced by the court to imprisonment in the penitentiary. The department, as soon as it receives such notice, shall send a suitable number of guards to convey such convicts to the penitentiary."

Name change

SECTION 395. Section 24-3-70 of the 1976 Code is amended to read:

  "Section 24-3-70. No sum beyond the actual expenses incurred in conveying such convicts to the penitentiary shall be allowed for such services. Such sum shall be paid to the department by the State Treasurer upon the warrant of the Comptroller General."

Name change

SECTION 396. Section 24-3-80 of the 1976 Code is amended to read:

  "Section 24-3-80. The director of the prison system shall admit and detain in the Department of Corrections for safekeeping any prisoner tendered by any law enforcement officer in this State by commitment duly authorized by the Governor, provided, a warrant in due form for the arrest of the person so committed shall be issued within forty-eight hours after such commitment and detention. No person so committed and detained shall have a right or cause of action against the State or any of its officers or servants by reason of having been committed and detained in the penitentiary."

Name change

SECTION 397. Section 24-3-90 of the 1976 Code is amended to read:

  "Section 24-3-90. The director shall receive and safely keep at hard labor, in the prison, all prisoners sentenced to confinement, at hard labor therein, by the authority of the United States, until they shall be discharged agreeably to the laws of the United States."

Department names changed

SECTION 398. Section 24-3-110 of the 1976 Code is amended to read:

  "Section 24-3-110. The State Department of Corrections may purchase the machinery and establish a plant for the purpose of manufacturing motor vehicle license plates and metal road signs. The charge for license plates and metal road signs sold to the Department of Revenue and Taxation and the Department of Transportation shall be in line with the prices previously paid private manufacturers and all state motor vehicle license plates, metal road signs and other signs capable of being manufactured by such a plant shall be purchased through the Department of Corrections and manufactured by it. The Department of Revenue and Taxation may prescribe the specifications of plates and the Department of Transportation may prescribe the specifications of signs used, the specifications to include colors, quality, and quantity."

Department names changed

SECTION 399. Section 24-3-130(A) of the 1976 Code is amended to read:

  "(A) The State Department of Corrections may permit the use of prison inmate labor on state highway projects or other public projects that may be practical and consistent with safeguarding of the inmates employed on the projects and the public. The Department of Transportation, another state agency, or a county, municipality or public service district making a beneficial public improvement may apply to the department for the use of inmate labor on the highway project or other public improvement or development project. If the director determines the labor may be performed with safety and the project is beneficial to the public he may assign inmates to labor on the highway project or other public purpose project. The inmate labor force must be supervised and controlled by officers designated by the department but the direction of the work performed on the highway or other public improvement project must be under the control and supervision of the person designated by the agency, county, municipality, or public service district responsible for the work. No person convicted of criminal sexual conduct in the first, second, or third degree or a person who commits a violent crime while on a work release program may be assigned to perform labor on a project described by this section."

Name change

SECTION 400. Section 24-3-131 of the 1976 Code is amended to read:
  "Section 24-3-131. The Department of Corrections shall determine whether an agency permitted to utilize convict labor on public projects pursuant to Section 24-3-130 can adequately supervise the inmates. If the director determines that the agency lacks the proper personnel, the agency shall be required to reimburse the department for the cost of maintaining correctional officers to supervise the convicts. In all cases the Department of Corrections shall be responsible for adequate supervision of the inmates."

Commissioner changed to director

SECTION 401. Section 24-3-140 of the 1976 Code is amended to read:

  "Section 24-3-140. The Director of the Department of Corrections shall, when called upon by the keeper of the State House and Grounds, furnish such convict labor as he may need to keep the State House and Grounds in good order."

Name change

SECTION 402. Section 24-3-150 of the 1976 Code is amended to read:

  "Section 24-3-150. Any person who has been sentenced to the State Penitentiary, or to the county public works and transferred to the State Penitentiary, may be transferred to the chain gang of the county from which convicted upon request of the county official having charge of such chain gang and with the consent and approval of the State Department of Corrections."

Commissioner changed to director

SECTION 403. Section 24-3-160 of the 1976 Code is amended to read:

  "Section 24-3-160. Any institution of this State getting convicts from the State Penitentiary by any act or joint resolution of the General Assembly shall be required to pay to the Director of the Department of Corrections all moneys expended by him for transportation, guarding, clothing and feeding such convicts while working for such institutions and also for medical attention, and the officer in charge of any such institution shall also execute and deliver to the director, at the end of each year, a receipt of five dollars and fifty cents per month for the work of each convict so employed."

Name change

SECTION 404. Section 24-3-170 of the 1976 Code is amended to read:

  "Section 24-3-170. Clemson University shall pay to the State Department of Corrections hire for all convicts used by the college at the rate of six dollars per month and shall pay the cost of clothing, feeding and guarding such convicts while so used and also the transportation of such convicts and guards back and forth from the penitentiary to the university."

Name change

SECTION 405. Section 24-3-180 of the 1976 Code is amended to read:

  "Section 24-3-180. Whenever a convict shall be discharged from the penitentiary, the State Department of Corrections shall furnish such convict with a suit of common clothes, if deemed necessary, and transportation from the penitentiary to his home or as near thereto as can be done by public conveyances. The cost of such transportation and clothes shall be paid to the State Treasurer, on the draft of the department, countersigned by the Comptroller General."

Name change

SECTION 406. Section 24-3-190 of the 1976 Code is amended to read:

  "Section 24-3-190. The balance in the hands of the State Department of Corrections at the close of any year, together with all other amounts received or to be received from the hire of convicts or from any other source during the current fiscal year, are appropriated for the support of the penitentiary."

Commissioner changed to director

SECTION 407. Section 24-3-200 of the 1976 Code is amended to read:

  "Section 24-3-200. Prisoners sentenced from one county and subsequently transferred to the jurisdiction of the State Department of Corrections, may, upon request of the supervisor of another county, be transferred to that county to serve the remainder of the sentence imposed or a part thereof if the director of the department and the prisoner consent in writing to the transfer."

Commissioner changed to director

SECTION 408. Section 24-3-210 of the 1976 Code is amended to read:

  "Section 24-3-210. The director may extend the limits of the place of confinement of a prisoner, as to whom there is reasonable cause to believe he will honor his trust, by authorizing him, under prescribed conditions, to leave the confines of that place unaccompanied by a custodial agent for a prescribed period of time to:
  (1) contact prospective employers;
  (2) secure a suitable residence for use when released on parole or upon discharge;
  (3) obtain medical services not otherwise available;
  (4) participate in a training program in the community or any other compelling reason consistent with the public interest;
  (5) visit or attend the funeral of a spouse, child (including stepchild, adopted child, or child as to whom the prisoner, though not a natural parent, has acted in the place of a parent), parent (including a person, though not a natural parent, who has acted in the place of a parent), brother, or sister.
  The director also may similarly extend the limits of the place of confinement of a terminally ill inmate for an indefinite length of time when there is reasonable cause to believe that such inmate will honor his trust.
  The wilful failure of a prisoner to remain within the extended limits of his confinement or return within the time prescribed to the places of confinement designated by the director shall be deemed an escape from the custody of the director punishable as provided in Section 24-13-410."

Name change

SECTION 409. Section 24-3-315 of the 1976 Code is amended to read:

  "Section 24-3-315. The Department of Corrections shall ensure that inmates participating in any prison industry program pursuant to the Justice Assistance Act of 1984 is on a voluntary basis. The director must determine prior to using inmate labor in a prison industry project that it will not displace employed workers, that the locality does not have a surplus of available labor for the skills, crafts, or trades that would utilize inmate labor, and that the rates of pay and other conditions of employment are not less than those paid and provided for work of similar nature in the locality in which the work is performed."

Board name changed to department

SECTION 410. Section 24-3-320 of the 1976 Code is amended to read:

  "Section 24-3-320. The State Department of Corrections may purchase, in the manner provided by law, equipment, raw materials and supplies and engage the supervisory personnel necessary to establish and maintain for this State at the penitentiary or any penal farm or institution now, or hereafter, under control of the department, industries for the utilization of services of convicts in the manufacture or production of such articles or products as may be needed for the construction, operation, maintenance or use of any office, department, institution or agency supported in whole or in part by this State and the political subdivisions thereof."

Board name changed to department

SECTION 411. Section 24-3-330 of the 1976 Code is amended to read:

  "Section 24-3-330. All offices, departments, institutions and agencies of this State which are supported in whole or in part by this State shall purchase, and all political subdivisions of this State may purchase, from the State Department of Corrections, articles or products made or produced by convict labor in this State or any other state, as provided for by this article, and no such article or product shall be purchased by any such office, department, institution or agency from any other source, unless excepted from the provisions of this section, as hereinafter provided. All purchases shall be made from the Department of Corrections, upon requisition by the proper authority of the office, department, institution, agency or political subdivision of this State requiring such articles or products."

Board name changed to department

SECTION 412. Section 24-3-340 of the 1976 Code is amended to read:

  "Section 24-3-340. Notwithstanding the provisions of Sections 24-3-310 to 24-3-330 and 24-3-360 to 24-3-420, no office, department, institution or agency, of this State, which is supported in whole or in part by this State, shall be required to purchase any article or product from the State Department of Corrections unless the purchase price of such article or product is no higher than that obtainable from any other producer or supplier."

Board name changed to department

SECTION 413. Section 24-3-360 of the 1976 Code is amended to read:

  "Section 24-3-360. The State Department of Corrections shall cause to be prepared, annually, at such times as it may determine, catalogues containing the description of all articles and products manufactured or produced under its supervision pursuant to the provisions of this article, copies of which catalogue shall be sent by it to all offices, departments, institutions and agencies of this State and made accessible to all political subdivisions of this State referred to in Sections 24-3-310 to 24-3-330. At least thirty days before the commencement of each fiscal year, the proper official of each such office, department, institution or agency, when required by the State Department of Corrections, shall report to the State Department of Corrections estimates for such fiscal year of the kind and amount of articles and products reasonably required for such ensuing year, referring in such estimates to the catalogue issued by the State Department of Corrections in so far as articles and products indicated are included in this catalogue."

Board name changed to department

SECTION 414. Section 24-3-380 of the 1976 Code is amended to read:

  "Section 24-3-380. The State Department of Corrections shall fix and determine the prices at which all articles or products manufactured or produced shall be furnished, which prices shall be uniform and nondiscriminating to all and shall be as near as the usual market price for such as may be practicable."
Board name changed to department

SECTION 415. Section 24-3-390 of the 1976 Code is amended to read:

  "Section 24-3-390. The State Department of Corrections shall have power and authority to prepare and promulgate rules and regulations which are necessary to give effect to the provisions of this article with respect to matters of administration and procedure respecting it."

Board changed to department or director

SECTION 416. Section 24-3-400 of the 1976 Code is amended to read:

  "Section 24-3-400. All monies collected by the State Department of Corrections from the sale or disposition of articles and products manufactured or produced by convict labor, in accordance with the provisions of this article, must be forthwith deposited with the State Treasurer to be kept and maintained as a special revolving account designated `Prison Industries Account', and the monies so collected and deposited must be used solely for the purchase of manufacturing supplies, equipment, machinery, and buildings used to carry out the purposes of this article, as well as for the payment of the necessary personnel in charge, and to otherwise defray the necessary expenses incident thereto and to discharge any existing obligation to the Sinking Funds and Property Division of the State Budget and Control Board, all of which must be under the direction and subject to the approval of the Director of the State Department of Corrections. The Department of Corrections shall contribute an amount of not less than five percent nor more than twenty percent of the gross wages paid to inmate workers participating in any prison industry project established pursuant to the Justice Assistance Act of 1984 (P.L. 98-473) and promptly place these funds on deposit with the State Treasurer for credit to a special account to support victim assistance programs established pursuant to the Victims of Crime Act of 1984 (P.L. 98-473, Title 2, Chapter 14, Section 1404). The Prison Industries Account must never be maintained in excess of the amount necessary to efficiently and properly carry out the intentions of this article. When, in the opinion of the Director of the Department of Corrections, the Prison Industries Account has reached a sum in excess of the requirements of this article, the excess must be used by the Department of Corrections for operating expenses and permanent improvements to the state prison system, subject to the approval of the State Budget and Control Board."
Board name changed to department

SECTION 417. Section 24-3-410(C) of the 1976 Code is amended to read:

  "(C) A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not less than two hundred nor more than five thousand dollars or imprisoned for not less than three months nor more than one year, or both. Each sale or offer for sale is a separate offense under this section. Proceeds of the sale of agricultural products, when produced by an instrumentality under control of the State Department of Corrections, must be applied as provided in Section 24-1-250."

Commissioner changed to director

SECTION 418. Section 24-3-510 of the 1976 Code is amended to read:

  "Section 24-3-510. Upon the conviction of any person in this State of a crime the punishment of which is death, the presiding judge shall sentence such convicted person to death according to the provisions of Section 24-3-530 and make such sentence in writing. Such sentence shall be filed with the papers in the case against such convicted person and a certified copy thereof shall be transmitted by the clerk of the court of general sessions in which such sentence is pronounced to the Director of the Department of Corrections not less than ten days prior to the time fixed in the sentence of the court for the execution of it."

Commissioner changed to director

SECTION 419. Section 24-3-520 of the 1976 Code is amended to read:

  "Section 24-3-520. The sheriff of the county in which such convicted person is so sentenced, together with one deputy or more, if in his judgment it is necessary, shall convey such convicted person to the State Penitentiary at Columbia to deliver him to the Director of the Department of Corrections not more than twenty days nor less than two days prior to the time fixed in the judgment for the execution of such condemned person, unless otherwise directed by the Governor or unless a stay of execution has been caused by appeal or the granting of a new trial or other order of a court of competent jurisdiction."
Commissioner changed to director

SECTION 420. Section 24-3-530 of the 1976 Code is amended to read:

  "Section 24-3-530. All persons convicted of capital crime and having imposed upon them the sentence of death shall suffer such penalty by electrocution within the walls of the State Penitentiary at Columbia under the direction of the Director of the Department of Corrections."

Board name changed to department

SECTION 421. Section 24-3-540 of the 1976 Code is amended to read:

  "Section 24-3-540. The Department of Corrections shall provide a death chamber and all necessary appliances for inflicting such penalty by electrocution and pay the costs thereof out of any funds in its hands. The expense of transporting any such criminal to the State Penitentiary shall be borne by the county in which the offense was committed."

Commissioner changed to director

SECTION 422. Section 24-3-550 of the 1976 Code is amended to read:

  "Section 24-3-550. At an execution the executioner and necessary staff, at the discretion of the Director of the Department of Corrections, to carry out the execution properly, a group of not more than two respectable citizens of the State designated by the director, and a group of not more than five representatives of the South Carolina media, one of whom shall represent the dominant wire service, two of whom shall represent the print media, and two of whom shall represent the electronic news media, must be present. The counsel for the convict and a minister of the gospel may be present. The department shall promulgate regulations to govern the selection of media representatives. No audio recorders, cameras, or recording devices are allowed in the Capital Punishment Facility during an execution."

Board duties transferred

SECTION 423. Section 24-3-710 of the 1976 Code is amended to read:

  "Section 24-3-710. The director may investigate any misconduct occurring in the State Penitentiary, provide suitable punishment therefor and execute it and take all such precautionary measures as in his judgment will make for the safe conduct and welfare of the institution. The director may suppress any disorders, riots or insurrections that may take place in the penitentiary and prescribe any and all such rules and regulations as in his judgment are reasonably necessary to avoid any such occurrence."

Commissioner changed to director

SECTION 424. Section 24-3-720 of the 1976 Code is amended to read:

  "Section 24-3-720. In order to suppress any disorders, riots or insurrection among the prisoners, the Director of the Department of Corrections may require the aid and assistance of any of the citizens of the State."

Commissioner changed to director

SECTION 425. Section 24-3-730 of the 1976 Code is amended to read:

  "Section 24-3-730. If any person, when so required by the Director of the Department of Corrections, shall neglect or refuse to give such aid and assistance, he shall pay a fine not exceeding fifty dollars."

Commissioner changed to director

SECTION 426. Section 24-3-740 of the 1976 Code is amended to read:

  "Section 24-3-740. Any person so aiding and assisting the Director of the Department of Corrections shall receive a reasonable compensation therefor, to be paid by the department, and allowed him on the settlement of his account."

Commissioner changed to director

SECTION 427. Section 24-3-750 of the 1976 Code is amended to read:

  "Section 24-3-750. If, in suppressing any such disorder, riot or insurrection, any person who shall be acting, aiding or assisting in committing the same shall be wounded or killed, the Director of the Department of Corrections, the keeper or any person aiding or assisting him shall be held as justified and guiltless."

Commissioner changed to director

SECTION 428. Section 24-3-760 of the 1976 Code is amended to read:

  "Section 24-3-760. In the absence of the Director of the Department of Corrections, the keeper shall have the same power in suppressing disorders, riots and insurrections and in requiring aid and assistance in so doing that is herein given to the director."

Commissioner changed to director

SECTION 429. Section 24-3-920 of the 1976 Code is amended to read:

  "Section 24-3-920. The Director of the Department of Corrections shall offer a reward of one hundred dollars for the capture of each escaped convict."

Commissioner changed to director

SECTION 430. Section 24-3-950 of the 1976 Code is amended to read:

  "Section 24-3-950. It shall be unlawful for any person to furnish or attempt to furnish any prisoner under the jurisdiction of the Department of Corrections with any matter declared by the director to be contraband. It shall also be unlawful for any prisoner under the jurisdiction of the Department of Corrections to possess any matter declared to be contraband. Matters considered contraband within the meaning of this section shall be those which are determined to be such by the director and published by him in a conspicuous place available to visitors and inmates at each correctional institution. Any person violating the provisions of this section shall be deemed guilty of a felony and, upon conviction, shall be punished by a fine of not less than one thousand dollars nor more than ten thousand dollars or imprisonment for not less than one year nor more than ten years, or both."

Board name changed to department

SECTION 431. Section 24-3-960 of the 1976 Code is amended to read:
  "Section 24-3-960. Any moneys or tokens or things of like nature used as money found in the unlawful possession of any prisoner confined in a penal institution under control of the Department of Corrections are hereby declared to be contraband, and any moneys or tokens or things of like nature used as money so seized shall be deposited in the welfare fund of the institution in which the prisoner is confined and shall be the property of such welfare fund."

Commissioner changed to director

SECTION 432. Section 24-7-90 of the 1976 Code is amended to read:

  "Section 24-7-90. In case any convict employed by a county supervisor shall become ungovernable or unfit for the labor required of such convict the supervisor may commit such convict to the State Penitentiary or county jail. And it shall be the duty of the Director of the Department of Corrections or the sheriff of the county, as the case may be, to receive any such convict so committed."

Names changed

SECTION 433. Section 24-9-10 of the 1976 Code is amended to read:

  "Section 24-9-10. There is hereby established a Jail and Prison Inspection Division under the jurisdiction of the Department of Corrections. The inspectors and such other personnel as may be provided for the division shall be selected by the director of the department."

Names changed

SECTION 434. Section 24-9-20 of the 1976 Code is amended to read:

  "Section 24-9-20. The division shall be responsible for inspecting, in conjunction with a representative of the State Fire Marshal, at least annually every facility in this State housing prisoners or pretrial detainees operated by a state agency, county, municipality, or any other political subdivision, and such inspection shall include all phases of operation and fire safety of the respective facilities. The inspection shall be based on standards established by the South Carolina Association of Counties and adopted by the Department of Corrections, and appropriate fire codes and regulations. The division and the inspecting fire marshal shall each prepare a written report on the conditions of the inspected facility. Copies of the reports shall be filed with the governing body of the political subdivision having jurisdiction of the facility inspected, the State Fire Marshal, the governing body of the county, and the county legislative delegation in which such facility is located. All reports shall be filed through the Director of the Department of Corrections."

Names changed

SECTION 435. Section 24-9-30 of the 1976 Code is amended to read:

  "Section 24-9-30. (a) If an inspection under this chapter discloses that a local confinement facility does not meet the minimum standards established by the South Carolina Association of Counties and adopted by the Department of Corrections, and the appropriate fire codes and regulations, the Director of the South Carolina Department of Corrections shall notify the governing body of the governmental unit responsible for the local confinement facility. A copy of the written report of the inspection required by this chapter shall also be sent to the resident or presiding judge of the judicial circuit in which the facility is located. The governing body shall promptly meet to consider the inspection report, and the inspection personnel shall appear to advise and consult concerning appropriate corrective action. The governing body shall initiate appropriate corrective action within ninety days or may voluntarily close the local confinement facility or objectionable portion thereof.
  (b) If the governing body fails to initiate corrective action within ninety days after receipt of the report of inspection, or fails to correct the disclosed conditions, the Director of the South Carolina Department of Corrections may order that the local confinement facility, or objectionable portion thereof, be closed at such time as the order may designate. The governing body and the resident or presiding judge of the judicial circuit shall be notified by registered mail of the director's order closing a local confinement facility.
  (c) The governing body shall have the right to appeal the director's order to the resident or presiding judge of the circuit in which the facility is located. Notice of the intention to appeal shall be given by registered mail to the Director of the South Carolina Department of Corrections and to the resident or presiding judge within fifteen days after receipt of the director's order. The right of appeal shall be deemed waived if notice is not given as herein provided.
  (d) The appeal shall be heard before the resident or presiding judge of the circuit who shall give reasonable notice of the date, time and place of the hearing to the Director of the South Carolina Department of Corrections and the governing body concerned. The hearing shall be conducted without a jury in accordance with the rules and procedures of the Circuit Court. The Department of Corrections, the governing body concerned and other responsible local officials shall have a right to be present at the hearing and present evidence which the court deems appropriate to determine whether the local confinement facility met the required minimum standards on the date of the last inspection. The court may affirm, reverse or modify the director's order."

Commissioner changed to director

SECTION 436. Section 24-11-30 of the 1976 Code is amended to read:

  "Section 24-11-30. The Director of the State Department of Corrections is hereby authorized and directed to do all things necessary or incidental to the carrying out of the compact in every particular and he may in his discretion delegate this authority to such deputies or assistants as he may designate."

Commissioner changed to director

SECTION 437. Section 24-13-210(c) of the 1976 Code is amended to read:

  "(c) If, during the term of imprisonment, a prisoner commits any offense or violates any of the rules of the institution, all or any part of his good conduct time may be forfeited at the discretion of the Director of the Department of Corrections, if the prisoner be confined in facilities of the department, or in the discretion of the local official having charge of prisoners sentenced to terms of imprisonment at the local level. The decision to withhold forfeited good conduct time is solely the responsibility of officials named in this subsection."

Commissioner changed to director

SECTION 438. Section 24-13-230(a) of the 1976 Code is amended to read:

  "(a) The Director of the Department of Corrections may allow any prisoner in the custody of the department, who is assigned to a productive duty assignment or who is regularly enrolled and actively participating in an academic, technical, or vocational training program, a reduction from the term of his sentence of zero to one day for every two days he is employed or enrolled. However, no inmate serving the sentence of life imprisonment is entitled to credits under this provision. A maximum annual credit for both work credit and class credit is limited to one hundred eighty days. The amount of credit to be earned for each duty classification or enrollment must be determined by the director and published by him in a conspicuous place available to inmates at each correctional institution. No credits earned under this section may be applied in a manner which would prevent full participation in the department's prerelease program."

Commissioner changed to director

SECTION 439. Section 24-13-270 of the 1976 Code is amended to read:

  "Section 24-13-270. The Director of the Department of Corrections and other persons having charge of prisoners who are required to serve a period of six months or more may permit the release of such prisoners on the first day of the month in which their sentences would normally expire and if the first day of the month falls on Saturday, Sunday, or a legal holiday, such prisoners may be released on the last weekday prior to the first of the month which is not a holiday or a Saturday."

Commissioner changed to director

SECTION 440. Section 24-13-640 of the 1976 Code is amended to read:

  "Section 24-13-640. Notwithstanding any other provision of law, any state or local prisoner who is not in the highest trusty grade and who is assigned to a work detail outside the confines of any correctional facility shall wear a statewide uniform. The uniform must be of such a design and color as to easily be identified as a prisoner's uniform and stripes must be used in the design. The Department of Corrections Division of Prison Industries shall manufacture the statewide uniform and make it available for sale to the local detention facilities. The Director of the Department of Corrections may determine, in his discretion, that the provisions of this section do not apply to certain prisoners."

Names changed

SECTION 441. Section 24-13-710 of the 1976 Code is amended to read:

  "Section 24-13-710. The Department of Corrections and the Department of Probation, Parole and Pardon Services shall jointly develop the policies, procedures, guidelines, and cooperative agreement for the implementation of a supervised furlough program which permits carefully screened and selected inmates who have served the mandatory minimum sentence as required by law or have not committed a violent crime as defined in Section 16-1-60 nor committed the crime of criminal sexual conduct in the third degree as defined in Section 16-3-654 or the crime of committing or attempting a lewd act upon a child under the age of fourteen as defined in Section 16-15-140 to be released on furlough prior to parole eligibility and under the supervision of state probation and parole agents with the privilege of residing in an approved residence and continuing treatment, training, or employment in the community until parole eligibility or expiration of sentence, whichever is earlier. The department and the Department of Probation, Parole and Pardon Services shall assess a fee sufficient to cover the cost of the participant's supervision and any other financial obligations incurred because of his participation in the supervised furlough program as provided by this article. The two departments shall jointly develop and approve written guidelines for the program to include, but not be limited to, the selection criteria and process, requirements for supervision, conditions for participation, and removal. The cooperative agreement between the two departments shall specify the responsibilities and authority for implementing and operating the program. Inmates approved and placed on the program must be under the supervision of agents of the Department of Probation, Parole and Pardon Services who are responsible for insuring the inmate's compliance with the rules, regulations, and conditions of the program as well as monitoring the inmate's employment and participation in any of the prescribed and authorized community-based correctional programs such as vocational rehabilitation, technical education, and alcohol/drug treatment. Eligibility criteria for the program include, but are not limited to, all of the following requirements:
  (1) maintain a clear disciplinary record for at least six months prior to consideration for placement on the program;
  (2) demonstrate to Department of Corrections' officials a general desire to become a law-abiding member of society;
  (3) satisfy any other reasonable requirements imposed upon him by the Department of Corrections;
  (4) have an identifiable need for and willingness to participate in authorized community-based programs and rehabilitative services;
  (5) have been committed to the State Department of Corrections with a total sentence of five years or less as the first or second adult commitment for a criminal offense for which the inmate received a sentence of one year or more. The Department of Corrections shall notify victims pursuant to Section 16-3-1530(c) as well as the sheriff's office of the place to be released before releasing inmates through any supervised furlough program.
  These requirements do not apply to the crimes referred to in this section."

Technical corrections

SECTION 442. Section 24-13-940 of the 1976 Code is amended to read:

  "Section 24-13-940. The official administering the work/punishment program may contract with the South Carolina Department of Corrections or with other governmental bodies to allow inmates committed to serve sentences in the custody of the department or in other local correctional facilities to participate in the program and be confined in the local correctional institution of the receiving official."

Commissioner changed to director

SECTION 443. Section 24-13-1310(3) of the 1976 Code is amended to read:

  "(3) `Director' means the Director of the Department of Corrections."

Commissioner changed to director

SECTION 444. Section 24-13-1320 of the 1976 Code is amended to read:

  "Section 24-13-1320. (A) The director of the department, guided by consideration for the safety of the community and the welfare of the inmate, shall promulgate regulations, according to procedures set forth in the Administrative Procedures Act, for the shock incarceration program. The regulations must reflect the purpose of the program and include, but are not limited to, selection criteria, inmate discipline, programming and supervision, and program structure and administration.
  (B) For each reception center the director shall appoint or cause to be appointed a shock incarceration selection committee which must include at least one representative of the Department of Probation, Parole and Pardon Services and which shall meet on a regularly scheduled basis to review all applications for a program.
  (C) A program may be established only at an institution classified by the director as a shock incarceration facility.
  (D) The department shall undertake studies and prepare reports periodically on the impact of a program and on whether the programmatic objectives are met."

Commissioner changed to director

SECTION 445. Section 24-13-1330(B) and (C) of the 1976 Code are amended to read:

  "(B) The committee shall consider input received from law enforcement agencies, victims, and others in making its decision for approval or disapproval of participation. If the committee determines that an inmate's participation in a program is consistent with the safety of the community, the welfare of the applicant, and the regulations of the department, the committee shall forward the application to the director or his designee for approval or disapproval.
  (C) An applicant may not participate in a program unless he agrees to be bound by all of its terms and conditions and indicates this agreement by signing the following: `I accept the foregoing program and agree to be bound by its terms and conditions. I understand that my participation in the program is a privilege that may be revoked at the sole discretion of the director. I understand that I shall complete the entire program successfully to obtain a certificate of earned eligibility upon the completion of the program, and if I do not complete the program successfully, for any reason, I will be transferred to a nonshock incarceration correctional facility to continue service of my sentence'."

Commissioner changed to director

SECTION 446. Section 24-13-1340(B) of the 1976 Code is amended to read:

  "(B) The director shall submit his findings, along with recommendations for sentencing, to the court within fifteen working days after an inmate has been received into the custody of the department."

Commissioner changed to director

SECTION 447. Section 24-13-1520(1) and (2) of the 1976 Code are amended to read:

  "(1) `Department' means, in the case of a juvenile offender, the Department of Juvenile Justice and, in the case of an adult offender, the Department of Probation, Parole and Pardon Services, the Department of Corrections, and any other law enforcement agency created by law.
  (2) `Court' means a circuit or family court having criminal or juvenile jurisdiction to sentence an individual to incarceration for a violation of law, the Department of Probation, Parole and Pardon Services, Board of Juvenile Parole, and the Department of Corrections."

Department restructured

SECTION 448. Section 24-13-1590 of the 1976 Code is amended to read:

  "Section 24-13-1590. Nothing in this article:
  (1) applies to a person, regardless of age, who violates the illicit narcotic drugs and controlled substances laws of this State; or
  (2) diminishes the lawful authority of the courts of this State, the Department of Juvenile Justice, or the Department of Probation, Parole and Pardon Services to regulate or impose conditions for probation or parole."

Commissioner changed to director

SECTION 449. Section 24-19-10(c) of the 1976 Code is amended to read:

  "(c) `Director' means the Director of the Department of Corrections."

Commissioner changed to director

SECTION 450. Section 24-19-20 of the 1976 Code is amended to read:

  "Section 24-19-20. There is hereby created within the Department of Corrections a Youthful Offender Division. The division shall be staffed by appointees and designees of the Director of the Department of Corrections. The staff members shall be delegated such administrative duties and responsibilities as may be required to carry out the purpose of this chapter."

Commissioner changed to director

SECTION 451. Section 24-19-30 of the 1976 Code is amended to read:

  "Section 24-19-30. The division shall consider problems of treatment and correction; shall consult with and make recommendations to the director with respect to general treatment and correction policies and procedures for committed youthful offenders, and recommend orders to direct the release of youthful offenders conditionally under supervision and the unconditional discharge of youthful offenders; and take such further action and recommend such other orders to the director as may be necessary or proper to carry out the purpose of this chapter."

Technical corrections

SECTION 452. Section 24-19-40 of the 1976 Code is amended to read:

  "Section 24-19-40. The division shall adopt such rules as the South Carolina Department of Corrections approves and promulgate them as they apply directly or indirectly to its procedure."

Commissioner changed to director

SECTION 453. Section 24-19-60 of the 1976 Code is amended to read:

  "Section 24-19-60. Youthful offenders shall undergo treatment in minimum security institutions, including training schools, hospitals, farms, forestry and other camps, including vocational training facilities and other institutions and agencies that will provide the essential varieties of treatment.
  The director, as far as is advisable and necessary, shall designate, set aside and adopt institutions and agencies under the control of the department and the division for the purpose of carrying out the objectives of this chapter. The director may further maintain a cooperative program with the Department of Vocational Rehabilitation involving the operation of reception and evaluation centers, utilizing funds and staffing services of the department which are appropriate for matching with Federal Vocational Rehabilitation funds.
  Insofar as practical and to the greatest degree possible, such institutions, facilities and agencies shall be used only for the treatment of committed youthful offenders, and such youthful offenders shall be segregated from other offenders, and classes of committed youthful offenders shall be segregated according to their needs for treatment."

Commissioner changed to director

SECTION 454. Section 24-19-80 of the 1976 Code is amended to read:

  "Section 24-19-80. The director may establish agreements with the Department of Vocational Rehabilitation for the operation of reception and evaluation centers. The reception and evaluation centers shall make a complete study of each committed youthful offender, including a mental and physical examination, to ascertain his personal traits, his capabilities, pertinent circumstances of his school, family life, any previous delinquency or criminal experience, and any mental or physical defect or other factor contributing to his delinquency. In the absence of exceptional circumstances, such study shall be completed within a period of thirty days. The reception and evaluation center shall forward to the director and to the division a report of its findings with respect to the youthful offender and its recommendations as to his treatment. At least one member of the division shall, as soon as practicable after commitment, interview the youthful offender, review all reports concerning him and make such recommendations to the director and to the division as may be indicated."

Commissioner changed to director

SECTION 455. Section 24-19-90 of the 1976 Code is amended to read:

  "Section 24-19-90. On receipt of the report and recommendations from the Reception and Evaluation Center and from the members of the division, the director may:
  (a) recommend to the division that the committed youthful offender be released conditionally under supervision; or
  (b) allocate and direct the transfer of the committed youthful offender to an agency or institution for treatment; or
  (c) order the committed youthful offender confined and afforded treatment under such conditions as he believes best designed for the protection of the public."

Commissioner changed to director

SECTION 456. Section 24-19-100 of the 1976 Code is amended to read:

  "Section 24-19-100. The director may transfer at any time a committed youthful offender from one agency or institution to any other agency or institution."

Commissioner changed to director

SECTION 457. Section 24-19-110 of the 1976 Code is amended to read:

  "Section 24-19-110. The division may at any time after reasonable notice to the director release conditionally under supervision a committed youthful offender. When, in the judgment of the director, a committed youthful offender should be released conditionally under supervision he shall so report and recommend to the division.
  The division may regularly assess a reasonable fee to be paid by the youthful offender who is on conditional release to offset the cost of his supervision.
  The division may discharge a committed youthful offender unconditionally at the expiration of one year from the date of conditional release."

Board changed to department

SECTION 458. Section 24-19-160 of the 1976 Code is amended to read:

  "Section 24-19-160. Nothing in this chapter shall limit or affect the power of any court to suspend the imposition or execution of any sentence and place a youthful offender on probation.
  Nothing in this chapter shall be construed to amend, repeal or affect the jurisdiction of the Department of Probation, Parole and Pardon Services. For parole purposes, a sentence pursuant to Section 24-19-50 (c) shall be considered a sentence for six years."

Department restructured

SECTION 459. Section 24-21-10 of the 1976 Code is amended to read:

  "Section 24-21-10. (A) The Department of Probation, Parole and Pardon Services, hereafter referred to as the `department', is governed by the Director of Probation, Parole and Pardon Services, hereafter referred to as the `director'. The director must be appointed by the Governor with the advice and consent of the Senate.
  (B) The Board of Probation, Parole and Pardon Services is composed of seven members. The terms of office of the members are for six years and until their successors are appointed and qualify. Six of the seven members must be appointed from each of the congressional districts and one member must be appointed at-large. Vacancies must be filled by gubernatorial appointment with the advice and consent of the Senate for the unexpired term. If a vacancy occurs during a recess of the Senate, the Governor may fill the vacancy by appointment for the unexpired term pending the consent of the Senate. A chairman must be elected annually by a majority of the membership of the board. The chairman may serve consecutive terms."

Removal of director and board

SECTION 460. Section 24-21-11 of the 1976 Code is amended to read:
  "Section 24-21-11. The director and members of the board shall be subject to removal by the Governor pursuant to the provisions of Section 1-3-240."

Technical changes

SECTION 461. Section 24-21-12 of the 1976 Code is amended to read:

  "Section 24-21-12. The members of the board shall draw no salaries, but each member shall be entitled to such per diem as may be authorized by law for boards, commissions, and committees, plus actual and necessary expenses incurred pursuant to the discharge of official duties."

Director's duties

SECTION 462. Section 24-21-13 of the 1976 Code is amended to read:

  "Section 24-21-13. (A) It is the duty of the director to oversee, manage, and control the department. The director shall develop written policies and procedures for the following:
    (1) the supervising of offenders on probation, parole, and other offenders released from incarceration prior to the expiration of their sentence;
    (2) the granting of paroles and pardons;
    (3) the operation of community based correctional programs; and
    (4) the operation of public work sentence programs for offenders as provided in item (1) of this subsection. This program also may be utilized as an alternative to technical revocations. The director shall establish priority programs for litter control along state and county highways. This must be included in the `public service work' program.
  (B) It is the duty of the board to consider cases for parole, pardon, and any other form of clemency provided for under law."

Commissioner changed to director

SECTION 463. Section 24-21-60 of the 1976 Code is amended to read:

  "Section 24-21-60. Every city, county, or state official or department shall assist and cooperate to further the objectives of this chapter. The board, the director of the department, and the probation agents may seek the cooperation of officials and departments and especially of the sheriffs, jailers, magistrates, police officials, and institutional officers. The director may conduct surveys of the State Penitentiary, county jails, and camps and obtain information to enable the board to pass intelligently upon all applications for parole. The Director of the Department of Corrections and the wardens, jailers, sheriffs, supervisors, or other officers in whose control a prisoner may be committed must aid and assist the director and the probation agents in the surveys."

Commissioner changed to director

SECTION 464. Section 24-21-70 of the 1976 Code is amended to read:

  "Section 24-21-70. The Director of the Department of Corrections, when a prisoner is confined in the State Penitentiary, the sheriff of the county, when a person is confined in the county jail, and the county supervisor or chairman of the governing body of the county if there is no county supervisor, when a prisoner is confined upon a work detail of a county, must keep a record of the industry, habits, and deportment of the prisoner, as well as other information requested by the board or the director and furnish it to them upon request."

Duties restructured

SECTION 465. Section 24-21-220 of the 1976 Code is amended to read:

  "Section 24-21-220. The director shall be vested with the exclusive management and control of the department and shall be responsible for the management of the department and for the proper care, treatment, supervision, and management of offenders under its control. The director shall manage and control the department and it shall be the duty of the director to carry out the policies of the department. The director is responsible for scheduling board meetings, assuring that the proper cases and investigations are prepared for the board, maintaining the board's official records, and performing other administrative duties relating to the board's activities. The director must employ within his office such personnel as may be necessary to carry out his duties and responsibilities including the functions of probation and parole supervision, community based programs, financial management, research and planning, staff development and training, and internal audit. The director shall make annual written reports to the board, the Governor, and the General Assembly providing statistical and other information pertinent to the department's activities."

Commissioner changed to director

SECTION 466. Section 24-21-221 of the 1976 Code is amended to read:

  "Section 24-21-221. The director must give a thirty-day written notice of any board hearing during which the board will consider parole for a prisoner to the following persons:
  (1) any victim of the crime who suffered damage to his person as a result thereof or if such victim is deceased, to members of his immediate family to the extent practicable;
  (2) the solicitor who prosecuted the prisoner or his successor in the jurisdiction in which the crime was prosecuted; and
  (3) the law enforcement agency that was responsible for the arrest of the prisoner concerned."

Names and duties changed

SECTION 467. Section 24-21-230 of the 1976 Code is amended to read:

  "Section 24-21-230. The director must employ such probation agents as required for service in the State and such clerical assistants as may be necessary. Such probation and parole agents must take and pass such psychological and qualifying examinations as directed by the director. The director must ensure that each probation agent receives adequate training. Until such initial employment requirements are met, no person may take the oath of a probation agent nor exercise the authority granted thereto."

Names changed

SECTION 468. Section 24-21-250 of the 1976 Code is amended to read:

  "Section 24-21-250. The probation agents must be paid salaries, to be fixed by the department, payable semimonthly, and also be paid traveling and other necessary expenses incurred in the performance of their official duties when the expense accounts have been authorized and approved by the director."

Names changed

SECTION 469. Section 24-21-260 of the 1976 Code is amended to read:

  "Section 24-21-260. Probation agents appointed under Section 24-21-230 must be assigned to serve in courts or districts or other places the director may determine."

Names changed

SECTION 470. Section 24-21-280 of the 1976 Code is amended to read:

  "Section 24-21-280. A probation agent must investigate all cases referred to him for investigation by the judges or director and report in writing. He must furnish to each person released on probation under his supervision a written statement of the conditions of probation and must instruct him regarding them. He must keep informed concerning the conduct and condition of each person on probation or parole under his supervision by visiting, requiring reports, and in other ways and must report in writing as often as the court or director may require. He must use practicable and suitable methods to aid and encourage persons on probation or parole to bring about improvement in their conduct and condition. A probation agent must keep detailed records of his work, make reports in writing, and perform other duties as the director may require. A probation agent must have, in the execution of his duties, the power to issue an arrest warrant or a citation charging a violation of conditions of supervision, the powers of arrest, and to the extent necessary the same right to execute process given by law to sheriffs. In the performance of his duties of probation and parole investigation and supervision, he is regarded as the official representative of the court and the department."

Commissioner changed to director

SECTION 471. Section 24-21-290 of the 1976 Code is amended to read:
  "Section 24-21-290. All information and data obtained in the discharge of his official duty by a probation agent is privileged information, is not receivable as evidence in a court, and may not be disclosed directly or indirectly to anyone other than the judge or others entitled under this chapter to receive reports unless ordered by the court or the director."

Board changed to director

SECTION 472. Section 24-21-485 of the 1976 Code is amended to read:

  "Section 24-21-485. In order for the department to establish and maintain restitution centers, the director may:
  (1) develop policies and procedures for the operation of restitution centers;
  (2) fund other management options advantageous to the State including, but not limited to, contracting with public or nonpublic entities for management of restitution centers;
  (3) lease buildings;
  (4) develop standards for disciplinary rules to be imposed on residents of restitution centers;
  (5) develop standards for the granting of emergency furloughs to participants."

Commissioner changed to director

SECTION 473. Section 24-21-620 of the 1976 Code is amended to read:

  "Section 24-21-620. Within the ninety-day period preceding a prisoner having served one-fourth of his sentence, the board, either acting in a three-member panel or meeting as a full board, shall review the case, regardless of whether or not any application has been made therefor, for the purpose of determining whether or not such prisoner is entitled to any of the benefits provided for in this chapter; provided, that in cases of prisoners in confinement due to convictions for nonviolent crimes, an administrative hearing officer may be appointed by the director to review the case who must submit to the full board written findings of fact and recommendations which shall be the basis for a determination by the board. Upon an affirmative determination, the prisoner must be granted a provisional parole or parole. Upon a negative determination, the prisoner's case shall be reviewed every twelve months thereafter for the purpose of such determination."

Commissioner changed to director

SECTION 474. Section 24-21-645 of the 1976 Code is amended to read:

  "Section 24-21-645. The board may issue an order authorizing the parole which must be signed either by a majority of its members or by all three members meeting as a parole panel on the case ninety days prior to the effective date of the parole; provided, that at least two-thirds of the members of the board must authorize and sign orders authorizing parole for persons convicted of a violent crime as defined in Section 16-1-60. A provisional parole order shall include the terms and conditions, if any, to be met by the prisoner during the provisional period and terms and conditions, if any, to be met upon parole. Upon satisfactory completion of the provisional period, the director or one lawfully acting for him must issue an order which, if accepted by the prisoner, shall provide for his release from custody. Provided, that upon a negative determination of parole, prisoners in confinement for a violent crime as defined in Section 16-1-60 must have their cases reviewed every two years for the purpose of a determination of parole."

Commissioner changed to director

SECTION 475. Section 24-21-650 of the 1976 Code is amended to read:

  "Section 24-21-650. The board shall issue an order authorizing the parole which must be signed by at least a majority of its members with terms and conditions, if any, but at least two-thirds of the members of the board must sign orders authorizing parole for persons convicted of a violent crime as defined in Section 16-1-60. The director, or one lawfully acting for him, then must issue a parole order which, if accepted by the prisoner, provides for his release from custody. Upon a negative determination of parole, prisoners in confinement for a violent crime as defined in Section 16-1-60 must have their cases reviewed every two years for the purpose of a determination of parole."

Commissioner changed to director

SECTION 476. Section 24-21-930 of the 1976 Code is amended to read:

  "Section 24-21-930. An order of pardon must be signed by at least two-thirds of the members of the board. Upon the issue of the order by the board, the director, or one lawfully acting for him, must issue a pardon order which provides for the restoration of the pardon applicant's civil rights."

Board changed to department

SECTION 477. Section 24-22-20(a) of the 1976 Code is amended to read:

  "(a) `Adult criminal offender management system' means the system developed by the State Department of Corrections and the State Department of Probation, Parole and Pardon Services which permits carefully screened inmates to be identified, transferred into Department of Corrections Reintegration Centers and placed in Department of Probation, Parole and Pardon Services Community Control Strategies."

Board changed to department

SECTION 478. Section 24-22-160 of the 1976 Code is amended to read:

  "Section 24-22-160. The Department of Corrections and the Budget and Control Board shall establish the operating capacities of the male prison population and the female prison population of the prison system operated by the Department of Corrections and shall, at least quarterly, certify existing operating capacities or establish changed or new operating capacities."

Duties transferred and names changed

SECTION 479. Section 24-23-40 of the 1976 Code is amended to read:

  "Section 24-23-40. The community corrections plan shall provide for:
  (a) The department's development, implementation, monitoring and evaluation of statewide policies, procedures and agreements with state agencies, such as the Departments of Vocational Rehabilitation, Mental Health, and the Department of Alcohol and Other Drug Abuse Services, for purposes of coordination and referral of probationers and parolees for rehabilitation services.
  (b) The department's development of specific guidelines for the vigorous monitoring of restitution orders and fines to increase the efficiency of collection and development of a systematic reporting system so as to notify the judiciary of restitution and fine payment failures on a regular basis.
  (c) The department's development of a program development-and-evaluation capability so that the department can monitor and evaluate the effectiveness of the above programs as well as to conduct research and special studies on such issues as parole outcomes, revocations and recidivism.
  (d) The department's development of adequate training and staff development for its employees."

Board changed to department

SECTION 480. Section 24-23-110 of the 1976 Code is amended to read:

  "Section 24-23-110. Judges of the Court of General Sessions may suspend the imposition or the execution of a sentence and may impose a fine and a restitution without requiring probation. The department shall implement the necessary policies and procedures to ensure the payment of such fines and restitution and report to the court failures to pay."

Board changed to department

SECTION 481. The second paragraph of Section 24-23-115 of the 1976 Code is amended to read:

  "The Department of Probation, Parole and Pardon Services shall establish by regulation pursuant to the Administrative Procedures Act a definition of the term `public service work', and a mechanism for supervision of persons performing public service work."

Board changed to department or director

SECTION 482. The second paragraph of Section 24-23-220 of the 1976 Code is amended to read:

  "Assessments imposed as a condition of supervision upon release from prison as specified in Section 24-23-210 must be collected by the supervising agent who shall transmit those funds to the Department of Probation, Parole and Pardon Services where it must be deposited in the state treasury. The county treasurer, after duly noting and recording the receipt of the payments, shall transfer those funds to the State Treasurer who shall deposit them in the State's general fund. Assessments collected by municipal courts must be paid monthly to the municipal financial officer who, after duly noting and recording the receipt of the payments, shall transfer those funds to the State Treasurer as provided in this section. From these funds, an amount equal to one-half of the amount deposited in fiscal year 1986-87 must be appropriated to the department for the purpose of developing and operating community corrections programs. The remainder of the funds must be deposited in the Victim's Compensation Fund. The director shall monitor the collection and reporting of these assessments imposed as a condition of supervision and assure that they are duly transferred to the State Treasurer."

Names changed

SECTION 483. Section 24-25-40 of the 1976 Code is amended to read:

  "Section 24-25-40. The Palmetto Unified School District No. 1 shall be under the control and management of a board of nine trustees who shall operate the district under the supervision of the State Department of Corrections. Four members of the school board shall be appointed by the Director of the Department of Corrections, four members of the school board shall be appointed by the State Superintendent of Education, and one member of the school board shall be appointed by the Governor. The members of the board shall be appointed for terms of four years each and until their successors are appointed and qualify; except that of those first appointed, the members appointed by the Director of the Department of Corrections and the members appointed by the State Superintendent of Education shall be appointed for terms of one, two, three and four years, respectively, such terms to be designated by the Director of the Department of Corrections and the State Superintendent of Education when making such appointments. The member initially appointed by the Governor also shall be appointed for a term of four years. Vacancies on the board shall be filled for the remainder of the unexpired term by appointment in the same manner as provided for the original appointment."

"Board" changed to "director of the department"

SECTION 484. Section 24-25-50 of the 1976 Code is amended to read:

  "Section 24-25-50. The members of the school board may be removed at any time for good cause by the Director of the Department of Corrections. The failure of any member of the school board to attend at least three consecutive meetings thereof, unless excused by formal vote of the school board, may be construed by the Director of the Department of Corrections as a resignation from the school board."

Names changed

SECTION 485. Section 24-25-70 of the 1976 Code is amended to read:

  "Section 24-25-70. With the consent and concurrence of the Director of the Department of Corrections, the board of the school district shall operate as executory agent for the schools under its jurisdiction and shall perform administrative functions as follows:
  (1) establish goals and objectives for the operation of the district;
  (2) enter into agreements and contracts with other school districts, technical schools, colleges and universities;
  (3) establish academic education programs ranging from primary through post high school, as well as special education for the handicapped and mentally retarded;
  (4) establish vocational and trade courses as appropriate for preparation for employment;
  (5) determine physical facilities needed to carry out all education programs;
  (6) review and approve applications for grants, donations, contracts and other agreements from public or private sources;
  (7) establish a twelve-month school program and teachers' pay schedule based on the state and average school supplement pay scales;
  (8) present an annual educational budget to the Department of Corrections for submission to the General Assembly. The Department of Corrections when making its annual budget request shall incorporate as a line item the budget of the district within its request. To the extent permitted by law, any funds which may be appropriated by the General Assembly for the operation of the district shall not prohibit the district from securing any applicable federal funds or other funds which are available."

Division of Veterans' Affairs in the Office of the Governor

SECTION 486. Chapter 11, Title 25 of the 1976 Code is amended to read:

"CHAPTER 11

Division of Veterans' Affairs

  Section 25-11-10. A Division of Veterans' Affairs in the Office of the Governor is hereby created for the purpose of assisting ex-servicemen in securing the benefits to which they are entitled under the provisions of federal legislation and under the terms of insurance policies issued by the federal government for their benefit. This division shall be under the direct supervision of a panel consisting of the Governor as chairman, the Attorney General for the purpose of giving legal advice, and the Adjutant and Inspector General.

  Section 25-11-20. For the purpose of carrying on this work the Governor shall appoint a Director of the Division of Veterans' Affairs, who is charged with the duty of assisting all ex-servicemen, regardless of the wars in which their service may have been rendered, in filing, presenting, and prosecuting to final determination all claims which they have for money compensation, hospitalization, training, and insurance benefits under the terms of federal legislation. The Director of the Division of Veterans' Affairs must be a person versed in federal legislation relating to these matters and the rules, regulations, and practice of the Veterans Administration as created by Congress and must be appointed by the Governor. Before the appointment, the Governor shall receive a recommendation from (1) the executive committee of the American Legion, Department of South Carolina, (2) the Veterans of Foreign Wars of the United States, Department of South Caroina, and (3) the Disabled American Veterans. The Governor is not required to appoint the person recommended and he is subject to removal by the Governor pursuant to the provisions of Section 1-3-240(B).

  Section 25-11-30. The office of the division herein provided for shall be located in Columbia in space provided by the State Budget and Control Board.

  Section 25-11-40. Subject to the recommendation of a majority of the Senators representing the county and a majority of the House members representing the county, the Director of the Division of Veterans' Affairs shall appoint a county veterans affairs officer for each county in the State, whose terms of office shall begin July first of each odd-numbered year and shall continue for a term of two years and until their successors shall be appointed. Any such county veterans affairs officer shall be subject to removal at any time by a majority of the Senators representing the county and a majority of the House members representing the county.

  Section 25-11-50. The Director of the Division of Veterans' Affairs shall establish uniform methods and procedure for the performance of service work among the several county officers, maintain contact and close cooperation with such officers, and provide assistance, advice and instructions with respect to changes in law and regulations and administrative procedure in relation to the application of such laws and he may require from time to time reports from such county veterans affairs officers, reflecting the character and progress of their official duties.

  Section 25-11-60. The county veterans affairs officers shall render semiannually a complete report of their acts and doings to the county legislative delegation of their respective counties upon uniform forms to be furnished by the Director of the Division of Veterans' Affairs.

  Section 25-11-70. The Division of Veterans' Affairs shall assist the South Carolina Agent Orange Advisory Council and the Agent Orange Information and Assistance Program at the Division of Health and Environmental Control in carrying out the purposes of Chapter 40 of Title 44. The Division of Veterans' Affairs shall:
  (1) refer veterans to appropriate state and federal agencies or other available resources for treatment of adverse health conditions which may have resulted from possible exposure to chemical agents, including Agent Orange;
  (2) assist veterans in filing compensation claims for disabilities that may have resulted from possible exposure to chemical agents, including Agent Orange;
  (3) communicate the concerns of veterans related to exposure to chemical agents, including Agent Orange, to appropriate state and federal officials. The division may request that the Attorney General represent a class of individuals composed of veterans who may have suffered adverse health conditions as a result of possible exposure to chemical agents, including Agent Orange, in a suit for release of information relating to the exposure to these chemicals during military service and for release of individual medical records."

Reference revised

SECTION 487. Section 27-18-20(1) of the 1976 Code is amended to read:

  "(1) `Administrator' means The South Carolina Department of Revenue and Taxation, its agents, or representatives."

Reference revised

SECTION 488. Section 27-31-100(f) of the 1976 Code is amended to read:

  "(f) A description of the full legal rights and obligations, both currently existing and which may occur, of the apartment owner, the co-owners, and the person establishing the regime. The master deed of any horizontal property regime developed under the provisions of this chapter that contains any submerged land shall contain a notice of restriction stating that all activities on or over and all uses of the submerged land or other critical areas are subject to the jurisdiction of the South Carolina Department of Health and Environmental Control, including, but not limited to, the requirement that any activity or use must be authorized by the South Carolina Department of Health and Environmental Control. The notice shall further state that any owner is liable to the extent of his ownership for any damages to, any inappropriate or unpermitted uses of, and any duties or responsibilities concerning any submerged land, coastal waters, or any other critical area."

Name change

SECTION 489. Section 30-4-40(a)(10) of the 1976 Code is amended to read:

  "(10) Any standards used or to be used by the South Carolina Department of Revenue and Taxation for the selection of returns for examination, or data used or to be used for determining such standards, if the commission determines that such disclosure would seriously impair assessment, collection, or enforcement under the tax laws of this State."

Name change

SECTION 490. Section 31-1-30 of the 1976 Code is amended to read:

  "Section 31-1-30. The Director of the Department of Commerce, hereafter in this chapter sometimes called the director, may:
  (1) study housing conditions and needs throughout the State to determine in what areas congested and unsanitary housing conditions constitute a menace to the health, safety, morals, welfare and reasonable comfort of the citizens of the State;
  (2) prepare programs for correcting such conditions;
  (3) collect and distribute information relating to housing;
  (4) investigate all matters affecting the cost of construction or production of dwellings;
  (5) study means of lowering rents of dwellings by securing economy in the construction and arrangement of buildings;
  (6) recommend and approve the areas within which or adjacent to which the construction of housing projects by limited dividend housing companies may be undertaken; and
  (7) cooperate with local housing officials and planning commissions or similar bodies in cities and other localities in the development of projects they at any time may have under consideration."

Name change

SECTION 491. Section 31-1-120 of the 1976 Code is amended to read:

  "Section 31-1-120. The purposes for which a limited dividend housing corporation is to be formed shall be as follows: To acquire, construct, maintain and operate housing projects when authorized by and subject to the supervision of the director."

Name change

SECTION 492. Section 31-1-140 of the 1976 Code is amended to read:

  "Section 31-1-140. The articles of a limited dividend housing corporation shall contain a declaration (a) that the corporation has been organized to serve a public purpose and that it shall remain at all times subject to the supervision and control of the director or of other appropriate state authority, (b) that all real estate acquired by it and all structures erected by it shall be deemed to be acquired for the purpose of promoting the public health and safety and subject to the provisions of the State Housing Law and (c) that the stockholders of the corporation shall be deemed, when they subscribe to and receive the stock thereof, to have agreed that they shall at no time receive or accept from the company, in repayment of their investment in its stock, any sums in excess of the par value of the stock, together with cumulative dividends at the rate of six percent per annum and that any surplus in excess of such amount if the company shall be dissolved, shall revert to the State."

Name change

SECTION 493. Section 31-1-150 of the 1976 Code is amended to read:

  "Section 31-1-150. The articles of a limited dividend housing corporation may authorize the issuance of income debenture certificates bearing no greater interest than six percent per annum. After the incorporation of a limited dividend housing corporation, the directors thereof may, with the consent of two thirds of the holders of any preferred stock that may be issued and outstanding, offer to the stockholders of the company the privilege of exchanging their preferred and common stock in such quantities and at such times as may be approved by the director for such income debenture certificates, whose value shall not exceed the par value of the stock exchanged therefor."

Name change

SECTION 494. Section 31-1-160 of the 1976 Code is amended to read:

  "Section 31-1-160. No limited dividend housing company incorporated under this chapter shall issue stock, bonds or income debentures, except for money, services or property actually received for the use and lawful purposes of the corporation. No stock, bonds or income debentures shall be issued for property or services except upon a valuation approved by the director and such valuation shall be used in computing actual or estimated cost.
  The director may permit stock or income debentures to be issued for working capital to be used in connection with such project to any amount not exceeding three percent of the estimated total cost or three percent of the actual cost, if actual cost should exceed estimated cost, of a project."

Name change

SECTION 495. Section 31-1-180 of the 1976 Code is amended to read:

  "Section 31-1-180. No limited dividend housing company incorporated under this chapter shall:
  (1) acquire any real property or interest therein unless it shall first have obtained from the director a certificate that such acquisition is necessary or convenient for the public purpose defined in Section 31-1-140;
  (2) sell, transfer, assign or lease any real property without first having obtained the consent of the director, except that leases conforming to the regulations and rules of the Department of Commerce and for actual occupancy by the lessees may be made without the consent of the director; (3) pay interest returns on its mortgage indebtedness and its income debenture certificates at a higher rate than six percent per annum;
  (4) issue its stock, debentures and bonds covering any project undertaken by it in an amount greater in the aggregate than the total actual final cost of such project, including the lands, improvements, charges for financing and supervision approved by the director and interest and other carrying charges during construction and an allowance for working capital to be approved by the director but not exceeding three percent of the estimated cost or of the total actual final cost if the final cost of the project shall be greater than the estimated cost;
  (5) mortgage any real property without first having obtained the consent of the director;
  (6) issue any securities or evidences of indebtedness without first having obtained the approval of the director and the approval of the Insurance Commissioner of South Carolina;
  (7) use any building erected or acquired by it for other than housing purposes, except that when permitted by law the story of the building above the cellar or basement and the space below such story may be used for stores, commercial, cooperative or community purposes and when permitted by law the roof may be used for cooperative or community purposes;
  (8) charge or accept any rental fee or other charge for housing accommodations in any building constructed, acquired, operated or managed by it in excess of the prices prescribed by the director;
  (9) enter into contracts for the construction of housing projects or for the payments of salaries to officers or employees except subject to the inspection and revision of the director and under such regulations as the Department of Commerce from time to time may prescribe;
  (10) voluntarily dissolve without first having obtained the consent of the director; or
  (11) make any guaranty without the approval of the director."

Name change

SECTION 496. Section 31-1-180(6) of the 1976 Code is amended to read:

  "(6) issue any securities or evidences of indebtedness without first having obtained the approval of the director and the approval of the Director of the Department of Insurance, or his designee;"

Name change

SECTION 497. Section 31-1-200 of the 1976 Code is amended to read:

  "Section 31-1-200. In pursuance of its power to supervise and regulate the operations of limited dividend housing companies incorporated under this chapter the director may:
  (1) order any such corporation to make, at its expense, such repairs and improvements as will preserve or promote the health and safety of the occupants of buildings and structures owned or operated by such corporations;
  (2) order all such corporations to do such acts as may be necessary to comply with the provisions of the law, the rules and regulations adopted by the Department of Commerce or the terms of any project approved by the director or to refrain from doing any acts in violation thereof;
  (3) examine all such corporations and keep informed as to their general condition, their capitalization and the manner in which their property is constructed, leased, operated or managed;
  (4) either through its members or agents duly authorized by it, enter in or upon and inspect the property, equipment, buildings, plants, offices, apparatus and devices of any such corporation, examine all books, contracts, records, documents and papers of any such corporation and by subpoena duces tecum compel the production thereof;
  (5) in its discretion prescribe uniform methods and forms of keeping accounts, records and books to be observed by such corporations and prescribe by order accounts in which particular outlays and receipts shall be entered, charged or credited;
  (6) require every such corporation to file with the director an annual report setting forth such information as the director may require, verified by the oath of the president and general manager or receiver, if any, thereof or by the person required to file such report, such report to be in the form, cover the period and be filed at the time prescribed by the director;
  (7) require specific answers to questions upon which the director may desire information and require such corporation to file periodic reports in the form covering the period and at the time prescribed by the director; and
  (8) from time to time make, amend and repeal rules and regulations for carrying into effect the provisions of this chapter."

Name change

SECTION 498. Section 31-1-210 of the 1976 Code is amended to read:

  "Section 31-1-210. The director may investigate the affairs of limited dividend housing companies incorporated under this chapter and the dealings, transactions or relationships of such companies with other persons. Any of the investigations provided for in this chapter may be conducted by the director or by a committee to be appointed by the director. Each member of the committee may administer oaths, take affidavits and make personal inspections of all places to which their duties relate. The committee may subpoena and require the attendance of witnesses and the production of books and papers relating to the investigations and inquiries authorized in this chapter, examine them in relation to any matter it has power to investigate and issue commissions for the examination of witnesses who are out of the State or unable to attend before the committee or excused from attendance."

Name change

SECTION 499. Section 31-1-220 of the 1976 Code is amended to read:

  "Section 31-1-220. The director may charge and collect from a limited dividend housing corporation, incorporated under this chapter, reasonable fees in accordance with the rates to be established by the rules of the Department of Commerce:
  (1) for the examination of plans and specifications and the supervision of construction, an amount not to exceed one half of one percent of the cost of the project;
  (2) for the holding of a public hearing upon application of a housing corporation, an amount sufficient to meet the reasonable cost of advertising the notice thereof and of the transcript of testimony taken thereat; and
  (3) for any examination or investigation made upon application of a housing corporation and for any act done by the Department of Commerce, or any of its employees, in performance of their duties under this chapter, an amount reasonably calculated to meet the expenses of the department incurred in connection therewith. In no event shall any part of the expenses of the department incurred under the provisions of this chapter ever be paid out of the State Treasurer. The director may authorize a housing corporation to include such fees as part of the cost of a project or as part of the charges specified in Section 31-1-620 pursuant to rules to be established by the Department of Commerce."

Name change

SECTION 500. Article 5 of Chapter 1 of Title 31 of the 1976 Code is amended to read:

"Article 5

Projects

  Section 31-1-410. No housing project proposed by a limited dividend housing company incorporated under this chapter shall be undertaken and no building or other construction shall be placed under contract or started without the approval of the director. No housing project shall be approved by the director unless:
  (1) it shall appear practicable to rent the housing accommodations to be created at rentals not exceeding those prescribed by the director;
  (2) the project will not be in contravention of any zoning or building ordinance in effect in the locality in which the housing accommodations are to be located;
  (3) there shall be submitted to the director a financial plan in such form and with such assurance as the director may prescribe to raise the actual cost of the lands and projected improvements by subscriptions to or the sale of the stock, income debentures and mortgage bonds of such corporation, which plan may provide for the raising of working capital in an amount to be approved by the director not to exceed three percent of the actual cost through the investment in stock and income debentures of the corporation;
  (4) there shall be such plans of site development and buildings as show conformity to reasonable standards of health, sanitation, safety and provision for light and air, accompanied by proper specifications and estimates of cost, such plans and specifications in any case not falling below the requirements of the health, sanitation, safety and housing laws of the State and meeting superior requirements if prescribed by local laws and ordinances;
  (5) the plans and specifications mentioned in item (4) shall have been submitted to the city council or other governing body of the city in which the housing project is located;
  (6) if required by the director, the corporation shall deposit all moneys received by it as proceeds of its mortgage bonds, notes, income debentures or stock with a trustee which shall be a banking corporation authorized to do business in this State and to perform trust functions; and
  (7) the acceptance of a designee of the director as a member of the board of directors of such corporation.

  Section 31-1-420. The city council to which plans and specifications shall have been submitted pursuant to item (5) of Section 31-1-410 shall return such plans and specifications to the director within fifteen days of their receipt by the council, together with such statements and recommendations as the council may desire to make. It shall be within the discretion of the director to adopt or to reject any or all of such recommendations.

  Section 31-1-430. Whenever reference is made in this chapter to the cost of projects or of buildings and improvements in projects, such cost shall include charges for financing and supervision approved by the director and carrying charges during construction required in the project, including interest on borrowed, and, when approved by the director, on invested capital.

  Section 31-1-440. A trustee to whom moneys are payable pursuant to requirements of the director made pursuant to item (6) of Section 31-1-410 shall receive such moneys and make payment therefrom for the acquisition of land, the construction of improvements and other items entering into the cost of land improvement upon presentation of draft, check or order signed by a proper officer of the corporation and, if required by the director, countersigned by the director or a person designated by the director for such purpose. Any funds remaining in the custody of such trustee after the completion of the project and payment or arrangement in a manner satisfactory to the director for payment in full thereof shall be paid to the corporation.

  Section 31-1-450. When the director shall have approved a project for the construction of housing accommodations presented to it by a limited dividend housing corporation, the corporation may undertake the acquisition of the property needed for the project. Such property may be acquired by gift, bequest or purchase or by the exercise of the power of eminent domain under and pursuant to the law providing for the appropriation or condemnation of private property by corporations.

  Section 31-1-460. The power of eminent domain shall not be exercised by a limited dividend housing corporation except with specific authorization of such action by the director and for such purpose the director shall specify that the acquisition of the property and the construction of the particular housing accommodations in connection with which the power is required has been determined by the director, after public hearing, to be in the public interest and necessary for the public use. The hearing shall be held at a time and place appointed by the director and notice of such hearing shall be given by the corporation by one publication in a newspaper, designated by the director, published or circulated in the city or county wherein the property is located at least ten days prior to such hearing. The owner, as shown upon the county auditor's current tax duplicate, of such property as is proposed to be acquired shall also be notified at least ten days prior to such hearing by registered mail addressed to the last known address of such owner.
  The director may expressly except from its certificate hereunder, as unnecessary to the plan, any part of the property proposed to be acquired. The approval by the director of the project shall be deemed in any proceeding to acquire land by appropriation as sufficient evidence of the necessity of the appropriation and a duly certified copy of the certificate of the director shall be conclusive evidence as to the matters lawfully certified therein in any appropriation proceeding.

  Section 31-1-470. Whenever the council of any municipality in which a project approved by the director is located shall determine by ordinance that any part of the land included in any such project should be maintained as a public park or grounds, such land may be purchased by the municipality for such purpose and thereafter be maintained as a public park or grounds. The council of a municipality by ordinance may also determine that real property of the municipality, specified and described in such ordinance, is not required for use by the municipality and may sell or lease such real property to a limited dividend housing corporation incorporated under this chapter.

  Section 31-1-480. Before any limited dividend housing company incorporated under this chapter shall purchase the property of any other limited dividend housing corporation, it shall file an application with the director in the manner herein provided as for a new project and shall obtain the consent of the director to the purchase and agree to be bound by the provisions of this chapter and the director shall not give his consent unless it is shown to his satisfaction that the project is one that can be successfully operated according to the provisions of this chapter.

  Section 31-1-490. The director may permit the consolidation of two or more approved projects, the extension or amendment of any approved project or the consolidation of any approved project with a proposed project. In any of these events the consolidated project shall be treated as an original project and an application shall be submitted as in the case of an original project and rents may be averaged throughout the consolidated or extended project. The director may likewise permit or decline to permit any limited dividend corporation to organize and operate more than one project or to take over any project heretofore approved by the director and operate it independently of other projects of the corporation."

Name change

SECTION 501. Article 7 of Chapter 1 of Title 31 of the 1976 Code is amended to read:

"Article 7

Operation, Mortgages, Reorganization,
Foreclosure, and the Like

  Section 31-1-610. The director shall fix the maximum rental or charges per room to be charged the tenants of the housing accommodations furnished by any limited dividend housing corporation. Such maximum rental or charges shall be determined upon the basis of the actual final cost of the project containing such rooms so as to secure, together with all other income of the corporation, a sufficient income to meet all necessary payments to be made by the corporation as herein prescribed and such room rental rates or charges shall be subject to revision by the director from time to time. Letting, subletting or assignment of leases of apartments in such housing accommodations at greater rentals than prescribed by the order of the director are prohibited and all such leases will be void for all purposes.

  Section 31-1-620. The payments to be made by such corporation shall be:
  (1) all fixed charges and all operating and maintenance charges and expenses which shall include taxes, assessments, insurance, amortization charges in amounts approved by the director to amortize the mortgage indebtedness in whole or in part, depreciation charges if, when and to the extent deemed necessary by the director, reserves, sinking fund and corporate expenses essential to the operation and management of the project in amounts approved by the director;
  (2) a dividend not exceeding the maximum fixed by this chapter upon the stock of the corporation allotted to the project by the director; and
  (3) when feasible in the judgment of the director, a sinking fund in an amount to be fixed by the director for the gradual retirement of the stock and income debentures of the corporation to the extent permitted by this chapter.
  Section 31-1-630. If in any calendar or fiscal year the gross receipts of any company formed hereunder should exceed the payments or charges specified in Section 31-1-620, the sums necessary to pay dividends, interest accrued or unpaid on any stock or income debentures and the authorized transfer to surplus, the balance shall, unless the board of directors with the approval of the director shall deem such balance too small for the purpose, be applied to the reduction of rentals.

  Section 31-1-640. The amounts of net earnings transferable to surplus in any year after making or providing for the payments specified in Section 31-1-620 shall be subject to the approval of the director. The amount of such surplus shall not exceed fifteen percent of the outstanding capital stock and income debentures of the corporation, but the surplus so limited shall not be deemed to include any increase in assets due to the reduction of a mortgage or amortization or similar payments. On dissolution of any limited dividend housing corporation the stockholders and income debenture certificate holders shall in no event receive more than the par value of their stock and debentures plus accumulated, accrued and unpaid dividends or interest and any remaining surplus shall be paid into the general fund of the State.

  Section 31-1-650. Whenever the director shall be of the opinion that any such limited dividend housing corporation is failing or omitting or about to fail or omit to do, anything required of it by law or by order of the director and is doing or about to do anything or permitting anything or about to permit anything to be done, contrary to or in violation of law or of any order of the director or which is improvident or prejudicial to the interests of the public, the lienholders or the stockholders, it may commence an action or proceeding in the court of common pleas of the county in which the corporation is located, in the name of the director, for the purpose of having such violations or threatened violations stopped and prevented either by mandamus or injunction.

  Section 31-1-660. The director shall begin such action or proceeding by a petition and complaint to the court of common pleas, alleging the violations complained of and praying for appropriate relief by way of mandamus or injunction. The court shall thereupon specify the time, not exceeding twenty days after service of a copy of the petition and complaint, within which the corporation complained of must answer the petition and complaint.
  In case of default in answer or after answer the court shall immediately inquire into the facts and circumstances in such manner as the court shall direct without other or formal pleadings and without respect to any technical requirements. Such other persons or corporations as it shall seem to the court necessary or proper to join as parties in order to make its order or judgment effective may be joined as parties. The final judgment in any such action or proceeding shall either dismiss the action or proceeding or direct that a mandamus order or an injunction or both, be issued as prayed for in the petition and complaint or in such modified or other form as the court may determine will afford appropriate relief.

  Section 31-1-670. Any company incorporated under this chapter may, subject to the approval of the director, borrow funds and secure the repayment thereof by bond and mortgage or by an issue of bonds under a trust indenture. Each mortgage or issue of bonds by a company formed hereunder shall relate only to a single specified project and no other and such bonds shall be secured by mortgages upon all of the real property of which such project consists. The bonds so issued and secured and the mortgage or trust indenture relating thereto may create a first or senior lien and a second or junior lien upon the real property embraced in any project. Such bonds and mortgages may contain such other clauses and provisions as shall be approved by the director, including the right to assignment of rents and entry into possession in case of default, but the operation of the housing projects in the event of such entry by mortgagee, trustee or receiver shall be subject to the regulations of the Department of Commerce under this chapter. Provisions for the amortization of the bonded indebtedness of companies incorporated under this chapter shall be subject to the approval of the director.

  Section 31-1-680. In any foreclosure action the director shall be made a party defendant and shall take all steps in such action necessary to protect the interest of the public therein. No costs shall be awarded against the director. Foreclosure shall not be decreed unless the court to which application therefor is made shall be satisfied that the interests of the lienholder or holders cannot be adequately secured or safeguarded except by the sale of the property. In any such proceeding the court may make an order increasing the rental to be charged for the housing accommodations in the project involved in such foreclosure or appoint a receiver of the property or grant such other and further relief as may be reasonable and proper. In the event of a foreclosure sale or other judicial sale the property shall, except as provided in Section 31-1-690, be sold to a limited dividend housing corporation organized under this chapter, if such a corporation shall bid and pay a price for the property sufficient to pay court costs and all liens on the property with interest. Otherwise the property shall be sold free of all restrictions imposed by this chapter.

  Section 31-1-690. Notwithstanding the provisions of Section 31-1-680, whenever it shall appear that a corporation subject to the supervision either of the Insurance Commissioner of South Carolina, the State Board of Bank Control or the federal government or any agency or department of the federal government, shall have loaned on a mortgage which is a lien upon any such property, such corporation shall have all the remedies available to a mortgagee under the laws of this State, free from any restrictions contained in Section 31-1-680, except that the director shall be made a party defendant and shall take all steps necessary to protect the interests of the public and no costs shall be awarded against it.

  Section 31-1-700. If a judgment is obtained against a limited dividend housing corporation in any action not pertaining to the collection of a mortgage indebtedness there shall be no sale of any of the real property of such corporation except upon sixty days' written notice to the director. Upon receipt of such notice the director shall take such steps as in its judgment may be necessary to protect the rights of all parties.

  Section 31-1-710. Reorganization of limited dividend housing corporations shall be subject to the supervision and control of the director and no such reorganization shall be had without the authorization of such director.
  Upon all such reorganizations the amount of capitalization, including therein all stocks, income debentures and bonds and other evidences of indebtedness shall be such as is authorized by the director which, in making its determination, shall not exceed the fair value of the property involved."

Name change

SECTION 502. Section 31-1-690 of the 1976 Code is amended to read:

  "Section 31-1-690. Notwithstanding the provisions of Section 31-1-680, whenever it shall appear that a corporation subject to the supervision either of the Insurance Department of South Carolina, the State Board of Bank Control or the federal government or any agency or department of the federal government, shall have loaned on a mortgage which is a lien upon any such property, such corporation shall have all the remedies available to a mortgagee under the laws of this State, free from any restrictions contained in Section 31-1-680, except that the director shall be made a party defendant and shall take all steps necessary to protect the interests of the public and no costs shall be awarded against it."

Definition revised

SECTION 503. Section 31-3-20(1) of the 1976 Code is amended to read:

  "(1) The term `director' shall mean the Director of the Department of Commerce;"

Name change

SECTION 504. Section 31-3-340 of the 1976 Code is amended to read:

  "Section 31-3-340. When the council of a city adopts a resolution as aforesaid, it shall promptly notify the mayor of such adoption. Upon receiving such notice the mayor shall appoint five persons as commissioners of the authority created for the municipality. The commissioners who are first appointed shall be designated to serve for terms of one, two, three, four and five years, respectively, from the date of their appointment, but thereafter commissioners shall be appointed as aforesaid for a term of office of five years except that all vacancies shall be filled for the unexpired term. No commissioner of an authority may be an officer or employee of the city for which the authority is created. A commissioner shall hold office until his successor has been appointed and has qualified. A certificate of the appointment or reappointment of any commissioner shall be filed in the office of the clerk of the Circuit Court of the county in which the city is located, in the office of the Secretary of State and in the office of the Director of the Department of Commerce and such certificate shall be conclusive evidence of the due and proper appointment of such commissioner."

Name change

SECTION 505. Section 31-3-370 of the 1976 Code is amended to read:

  "Section 31-3-370. For inefficiency, neglect of duty or misconduct in office a commissioner of an authority may be removed by the mayor, but a commissioner shall be removed only after he shall have been given a copy of the charges at least ten days prior to the hearing thereon and had an opportunity to be heard in person or by counsel. In the event of the removal of any commissioner a record of the proceedings, together with the charges and findings thereon, shall be filed in the office of the clerk of the Circuit Court of the county in which the city is located, in the office of the Secretary of State and in the office of the Director of the Department of Commerce."

Name change

SECTION 506. Section 31-3-390 of the 1976 Code is amended to read:

  "Section 31-3-390. The territorial jurisdiction of each authority, except as otherwise specially provided, shall be coterminous with the boundaries of the city creating the authority unless this territory is extended by the director. The director may extend the territorial jurisdiction of any housing authority over territory contiguous to that of the housing authority if such extension does not conflict with any other housing authority."

Name change

SECTION 507. Section 31-3-750 of the 1976 Code is amended to read:

  "Section 31-3-750. The territorial jurisdiction of a housing authority of a county shall be coterminous with the boundaries of the county in which such authority is situated but shall not include that portion of the county within the territorial jurisdiction of any housing authority of a city. But notwithstanding the provisions of this section the director may extend the territorial jurisdiction of a housing authority of a city over territory contiguous thereto, including territory included within the territorial jurisdiction of the housing authority of a county, and such extension of the territorial jurisdiction of a housing authority of a city and limitation of the territorial jurisdiction of the housing authority of the county affected thereby shall not be deemed to conflict with the housing authority of the county within the meaning of Section 31-3-390 unless a housing project shall have been constructed or acquired or the director shall determine that such a project is about to be constructed or acquired by the housing authority of such county within the territory proposed to be included within the territorial jurisdiction of the housing authority of the city."

Name change

SECTION 508. Section 31-17-340 of the 1976 Code is amended to read:

  "Section 31-17-340. A mobile home license issued by the licensing agent shall be valid until title to such mobile home is transferred to a new owner or until the mobile home is relocated. The license shall be evidenced by a decal to be delivered to the owner or his agent on such form as shall be prescribed by the South Carolina Department of Revenue and Taxation and shall be displayed on the mobile home so as to be clearly and readily visible from the outside. The fee for a mobile home license shall be five dollars. The fee shall be collected by the licensing agent issuing the license and shall be paid into the general fund of the county."

Name change

SECTION 509. Section 31-17-360 of the 1976 Code is amended to read:

  "Section 31-17-360. If the mobile home is to be relocated, the owner shall, prior to relocation, obtain a moving permit from the licensing agent. Before issuing a moving permit, the licensing agent shall require a certificate from the county treasurer that there are no unpaid taxes due on the mobile home. If the mobile home is to be removed beyond the boundaries of the county, any taxes that have been assessed for that calendar year shall be paid in full, and if taxes have not yet been assessed for the calendar year in which the move is being made, the assessor shall provide the county auditor with an assessment and the auditor shall apply the previous year's millage. The county treasurer shall collect such taxes before issuing the requisite certificate to the licensing agent. Provided, however, that the licensing agent shall promptly notify the present electric supplier that a permit has been issued. Provided, further, that the permit required by this section shall not be required of mobile home dealers when they are moving a mobile home from their sales lot to a customer's lot. Provided, further, that such mobile home dealer shall not be relieved from obtaining any permit required from the Department of Revenue and Taxation for such relocation."

Name change

SECTION 510. Section 31-17-370 of the 1976 Code is amended to read:

  "Section 31-17-370. The moving permit shall accompany the mobile home while it is being moved. The moving permit shall be designed and displayed in accordance with regulations to be issued by the South Carolina Department of Revenue and Taxation, which shall adopt such regulations as may be necessary to insure uniform licensing and moving permit procedures. It shall be the responsibility of the mobile home transporter that the required moving permit is properly displayed and accompanies the mobile home while it is being moved."

Definition revised

SECTION 511. Section 31-17-510(g) of the 1976 Code is amended to read:

  "(g) `Department' means the Department of Public Safety."

Name change

SECTION 512. Section 33-1-210(a) of the 1976 Code is amended to read:

  "(a) The Secretary of State may prescribe and furnish on request forms for:
    (1) an application for a certificate of existence,
    (2) a foreign corporation's application for a certificate of authority to transact business in this State,
    (3) a foreign corporation's application for a certificate of withdrawal, and
    (4) in conjunction with the Department of Revenue and Taxation, the annual report. If the Secretary of State so requires, use of these forms is mandatory. The Secretary of State, through regulation, may prescribe a mandatory form in regard to any other forms required or permitted by Chapters 1 through 20 of this Title to be filed in his office. All such mandatory forms must comply with all statutory requirements contained in Chapters 1 through 20 of this Title."

Name change

SECTION 513. Section 33-14-200 of the 1976 Code is amended to read:

  "Section 33-14-200. (a) The Secretary of State shall commence a proceeding under Section 33-14-210(a) to dissolve a corporation administratively if:
    (1) the corporation does not pay when they are due any franchise taxes, taxes payable under Chapter 7 of Title 12, or penalties imposed by law;
    (2) the corporation does not deliver its annual report to the Department of Revenue and Taxation when it is due;
    (3) the corporation is without a registered agent or registered office in this State;
    (4) the corporation does not notify the Secretary of State that its registered agent or registered office has been changed, that its registered agent has resigned, or that its registered office has been discontinued; or
    (5) the corporation's period of duration stated in its articles of incorporation expires.
  (b) The Secretary of State shall dissolve a corporation under Section 33-14-210(c) if he is notified by the Department of Revenue and Taxation that the corporation has failed to file a required tax return within sixty days of the notice required by Section 12-7-1675."

Name change

SECTION 514. Section 33-14-220(a) of the 1976 Code is amended to read:

  "(a) A corporation dissolved administratively under Section 33-14-210 may apply to the Secretary of State for reinstatement at any time after the effective date of dissolution. The application must:
    (1) recite the name of the corporation and the effective date of its administrative dissolution;
    (2) state that the grounds for dissolution either did not exist or have been eliminated;
    (3) state that the corporation's name satisfies the requirements of Section 33-4-101; and
    (4) contain a certificate from the South Carolina Department of Revenue and Taxation reciting that all taxes, penalties, and interest owed by the corporation, whether assessed or not, have been paid."

Name change

SECTION 515. Section 33-14-400 of the 1976 Code is amended to read:

  "Section 33-14-400. Assets of a dissolved corporation that should be transferred to a creditor, claimant, or shareholder of the corporation who cannot be found or who is not competent to receive them, must be reduced to cash and deposited with the Department of Revenue and Taxation or other appropriate state official for safekeeping in accordance with the Uniform Disposition of Unclaimed Property Act. When the creditor, claimant, or shareholder furnishes satisfactory proof of entitlement to the amount deposited, the Department of Revenue and Taxation or other appropriate state official shall pay him or his representative that amount."

Name change

SECTION 516. Section 33-15-300(a)(1) and (b) of the 1976 Code are amended to read:

  "(a)(1) the foreign corporation does not deliver its annual report to the Department of Revenue and Taxation when due;
  (b) the Secretary of State shall proceed under Section 33-15-310(c) to revoke the certificate of authority of a foreign corporation authorized to transact business in this State if he is notified by the Department of Revenue and Taxation that the corporation has failed to file a required tax return within sixty days of the notice required by Section 12-7-1675."

Name change

SECTION 517. Section 33-15-310(c) of the 1976 Code is amended to read:

  "(c) If the Secretary of State is notified by the Department of Revenue and Taxation that the foreign corporation has failed to file a required tax return within sixty days of the notice required by Section 12-7-1675, the Secretary of State shall revoke the foreign corporation's certificate of authority by signing a certificate of revocation that recites the grounds for revocation and its effective date. The Secretary of State shall file the original of the certificate and send a copy to the foreign corporation by registered or certified mail addressed to its registered agent at its registered office or to the office of the secretary of the corporation at its principal office."

Name change

SECTION 518. Section 33-15-330(A)(4) of the 1976 Code is amended to read:

  "(4) contain a certificate from the South Carolina Department of Revenue and Taxation stating that all taxes, penalties, and interest owed by the corporation, whether assessed or not, have been paid."

Name change

SECTION 519. Section 33-16-101(e)(7) of the 1976 Code is amended to read:

  "(7) its most recent annual report delivered to the Department of Revenue and Taxation under Section 12-19-20;"

Name change

SECTION 520. Section 33-31-60 of the 1976 Code is amended to read:

  "Section 33-31-60. Before issuing a charter of incorporation to any religious, educational, social, fraternal or other nonprofit organization, the Secretary of State shall first conduct an investigation to determine the merits of the claimed eligibility and status of the organization applying for a charter or an amendment to an existing charter. In the conduct of such investigation the Secretary of State is authorized to obtain information and assistance from any state agency including but not limited to the Department of Social Services and the Department of Revenue and Taxation and shall have access to any relevant records of such state agencies. The issuance of any charter of incorporation or amendment thereto subject to the provisions of this section shall constitute certification by the Secretary of State that the required investigation has been conducted and that the results of the investigation indicate that the organization concerned is eligible for the charter issued.
  In addition to the initial investigation conducted prior to the issuance of a charter, the Secretary of State may at any time investigate the status of an organization to which a charter has been issued and upon a finding that it no longer qualifies for the charter may at his discretion revoke such charter. Persons aggrieved by the action of the Secretary of State may appeal his decision to the court of common pleas in the judicial circuit where the organization's principal office is located."

Name change

SECTION 521. Section 33-37-250(10) of the 1976 Code is amended to read:

  "(10) to cooperate with and avail itself of the facilities of the Department of Commerce and any similar governmental agencies, including the Small Business Administration, an agency of the United States Government, and to cooperate with and assist and otherwise encourage organizations in the various communities of the State in the promotion, assistance and development of the business prosperity and economic welfare of such communities or of this State or of any part thereof; and"

Name change

SECTION 522. Section 33-37-460(3)(b) of the 1976 Code is amended to read:

  "(b) the following limits, to be determined as of the time such member becomes a member on the basis of the audited balance sheet of such member at the close of its fiscal year immediately preceding its application for membership, or in the case of an insurance company its last annual statement to the director of the Department of Insurance or his designee:"

Name change

SECTION 523. Section 33-39-460(3)(b) of the 1976 Code is amended to read:

  "(b) the following limits, to be determined as of the time such member becomes a member on the basis of the audited balance sheet of such member at the close of its fiscal year immediately preceding its application for membership, or, in the case of an insurance company, its last annual statement to the director of the Department of Insurance or his designee:"

Name change

SECTION 524. The ninth unnumbered paragraph of Section 34-29-160 of the 1976 Code is amended to read:

  "Any accident and health or property insurance sold in conjunction with this chapter must be written on forms and at rates approved by the South Carolina Department of Insurance, provided that a minimum charge of two dollars may be made, pursuant to reasonable regulations adopted by it and having as their purpose the establishment and maintenance of premium rates which are reasonably commensurate with the coverage afforded and which are adequate, not excessive, and not unfairly discriminatory giving due consideration to past or prospective loss experience within or without this State, to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to borrowers, to reasonable expense allowances necessary to achieve proper risk distribution and spread, and to all other relevant factors within or without this State. These regulations may include reasonable classification systems or programs based upon identifiable and measurable variations in the hazards or expense requirements and may include statistical plans, systems, or programs, which the insurers may be required to adopt, for the purpose of providing that statistical information and data as may be necessary or reasonably appropriate to the determination of premium rates or rate levels. The premium rates and rate levels must be calculated to produce and maintain a ratio of losses incurred, or reasonably expected to be incurred, to premiums earned, or reasonably expected to be earned, of not less than fifty percent, and rates producing a lesser loss ratio are considered excessive."

Name change

SECTION 525. Section 36-9-307(4) of the 1976 Code is amended to read:

  "(4) In the case of a purchase of a motor vehicle made pursuant to the provisions of Section 29-15-10, the buyer takes free of a security interest even though perfected, and the Department of Revenue and Taxation shall upon request issue a new title free and clear of prior liens and encumbrances."

Name change

SECTION 526. Section 36-9-319 of the 1976 Code is amended to read:

  "Section 36-9-319. Notwithstanding Section 36-9-311, any person who sells or disposes of any personal property subject to a security interest, except for personal property titled by the Department of Revenue and Taxation or the Natural Resources Enforcement Division of the South Carolina Department of Natural Resources, without the written consent of the secured party, and fails to pay the debt secured by the security interests within ten days after sale or disposal or fails in this time to deposit the amount of the debt with the clerk of the court of common pleas for the county in which the secured party resides is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned for not more than one year, or both. This section does not apply when the sale is made without knowledge or notice of the security interest by the person selling the property. When the value of the property is less than two thousand five hundred dollars, the offense is triable in the magistrate's court and the punishment must be not more than is permitted by law without presentment or indictment by the grand jury. Otherwise, the offense is triable in the court of general sessions."

Reference revised

SECTION 527. Section 37-6-605 of the 1976 Code is amended to read:

  "Section 37-6-605. In the performance of his assigned functions the advocate shall have reasonable access to records of all state agencies which are not classified by law as confidential and all state agencies shall cooperate with the advocate in the performance of his duties. In addition, the advocate shall have reasonable access to confidential records and information, provided he enters a proprietary agreement to insure their confidentiality. The South Carolina Department of Insurance and advocate also have access to records, information, and data of the insurance companies as well as all of their sister affiliates, subsidiaries, and parent companies. During the course of a rate making or other proceeding before the South Carolina Department of Insurance or the Public Service Commission, the Consumer Advocate, as a party of record, may request in writing, in addition to all other methods of discovery as provided by law for proceedings before the South Carolina Department of Insurance or the Public Service Commission, the issuance by the director of the Department of Insurance or the executive director of the Public Service Commission of an order compelling a witness or company to either produce or allow inspection of documentary evidence relevant to the matter before the South Carolina Department of Insurance or the Public Service Commission. If the executive director issues or refuses to issue the order, the aggrieved party may appeal to the full commission. The written request, in addition to showing a general relevance and reasonable scope of the evidence sought, must also specify with particularity the books, accounts, papers, records, or other materials of the business desired and the facts expected to be proved thereby. For good cause shown, in lieu of a written request, the request for such an order may be made orally upon the record to the presiding officer at the hearing. Any objections to the issuance of the order must be filed with the commission within three days of being notified of the written request for such order. Any objections so filed must list the specific grounds for objection. The commission shall rule on the objections within ten days or the objection is denied."

Name of title

SECTION 528. Section 38-1-10 of the 1976 Code of Laws is amended to read:

  "Section 38-1-10. This title may be cited and is known as `The Insurance Law'."

Advisory committee, commission deleted; etc.

SECTION 529. Section 38-1-20 of the 1976 Code is amended to read:

  "Section 38-1-20. In this title unless the context otherwise requires:
  (1) `Accident and health insurance' means insurance of human beings against death or personal injury by accident, and every insurance of human beings against sickness, ailment, and any type of physical disability resulting from accident or disease, and prepaid dental service, but not including coverages required by the Workers' Compensation Law of this State.
  (2) `Accommodation bondsman' means as defined in Section 38-53-10.
  (3) `Adjuster' means an individual who determines the extent of insured losses and assists in settling or attempts to settle claims.
  (4) `Admitted assets' means assets of an insurer considered admitted under Section 38-11-100.
  (4.5) `Admitted insurer' means an insurer licensed to do business in this State.
  (5) `Alien insurer' means an insurer incorporated or organized under the laws of a country other than the United States of America, its states, commonwealths, territories, or insular possessions.
  (6) `Annuity' means every contract or agreement to make periodic payments, whether in fixed or variable dollar amounts, or both, at specified intervals.
  (7) `Bail bondsman' means as defined in Section 38-53-10.
  (8) `By' means on or before.
  (9) `Casualty insurance' means every insurance against legal liability of the insured for bodily injury to or death of other persons, including workers' compensation insurance, and for damages to or loss or destruction of the property of others; medical payments insurance when written in conjunction with any insurance covering liability for the deaths or bodily injuries of others; guaranteeing the fidelity of persons holding positions of public or private trust; loss of or damage to property caused by burglary, theft, larceny, robbery, fraud, or any unlawful taking or secretion of property owned by or entrusted to the insured; loss of or damage to property of the insured resulting from the explosion of or damage to any fired or unfired boiler or other pressure vessel, engine, turbine, compressor, pump, wheel, any apparatus generating, transmitting, or using electric power, and any machinery or equipment connected with any of the foregoing; loss resulting from nonpayment of debts owed to merchants or other persons extending credit; and legal insurance.
  (10) `Certificate of insurance' means a memorandum copy, complete or abbreviated, of an insurance contract.
  (11) `Co-insurance' means a stipulation or requirement that the insured undertakes to be his own insurer to the extent that he fails to maintain insurance of a given percentage of the value of the property against loss or damage.
  (12) `Commission' means the part of the premium paid to the agent as compensation for his services.
  (13) `Company' includes any corporation, fraternal organization, burial association, other association, partnership, society, order, individual, or aggregation of individuals engaging or proposing or attempting to engage as principals in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations.
  (14) `Department' means the Department of Insurance of South Carolina.
  (15) `Designee or deputy director' means the person or persons appointed by the director, serving at the will and pleasure of the director as his designee, to supervise and carry out the functions and duties of the department as provided by law. Any duty or function of the director to manage and supervise the Insurance Department may be conferred by the director's authority upon his designee or deputy director.
  (16) `Director' means the person who is appointed by the Governor upon the advice and consent of the Senate and who is responsible for the operation and management of the Department of Insurance. The director has the authority to appoint or designate the person or persons who shall serve at the pleasure of the director to carry out the objectives or duties of the department as provided by law. Furthermore, the director may bestow upon his designee or deputy director any duty or function required of him by law to manage and supervise the Insurance Department.
  (17) `Domestic insurer' means an insurer incorporated or organized under the laws of this State.
  (17.5) `Eligible surplus lines insurer' means a nonadmitted insurer with which a resident broker may place surplus lines insurance.
  (18) `Foreign insurer' means an insurer incorporated or organized under the laws of the United States or of any jurisdiction within the United States other than this State.
  (19) `Insurance' means a contract whereby one undertakes to indemnify another or pay a specified amount upon determinable contingencies. The term `insurance' includes annuities.
  (20) `Insurance agent' means an individual who represents an insurance company and performs the acts listed in Section 38-43-10.
  (21) `Insurance broker' means an individual licensed by the department to represent citizens of this State in placing their insurance. An insurance broker may place that insurance either with an eligible surplus lines insurer or with a licensed insurance agent in an insurance carrier licensed in this State.
  (22) `Insurance company' includes any corporation, fraternal organization, burial association, other association, partnership, society, order, individual, or aggregation of individuals engaging or proposing or attempting to engage as principals in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations.
  (23) `Insurance premium service company' means a person engaged in the business of entering into insurance premium service agreements.
  (24) `Insurance rate' means the price of insurance per unit of exposure.
  (25) `Insurer' includes any corporation, fraternal organization, burial association, other association, partnership, society, order, individual, or aggregation of individuals engaging or proposing or attempting to engage as principals in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations.
  (26) `Legal insurance' means the assumption of a contractual obligation for the sole purpose of providing specified legal services or reimbursement for legal expenses in consideration of a specified payment, for an interval of time, which services are rendered by an individual duly admitted or permitted to practice law in the jurisdictions in which the services were performed.
  (27) `Life Insurance' means a contract of insurance upon the lives of human beings. The following contracts are deemed to be contracts of life insurance within the meaning of this definition:
    (a) a contract providing acceleration of life benefits, beginning on the contract's original effective date, in advance of the time they otherwise would be payable for long-term care as defined in Section 38-72-40;
    (b) a contract providing acceleration of life benefits, beginning on the contract's original effective date, in advance of the time they otherwise would be payable for a life-threatening illness or a terminal illness as specified in the contract.
  (28) `Marine insurance' means every insurance against loss or destruction of or damage to aircraft, vessels, or watercraft and their cargoes; insurance covering the risks or perils of navigation, transit, or transportation of all forms of property, including the liability of any carrier for hire for the loss of property of shippers delivered for transporting; marine builder's risks; bridges, tunnels, piers, wharves, docks and slips, dry docks, marine railways, and other aids to navigation and transportation, precious stones, precious metals, and jewelry, whether in the course of transportation or otherwise; coverage of personal property by all risk forms known as the `Personal Property Floater'; and coverage of mobile machinery and equipment.
  (28.5) `Nonadmitted insurer' means an insurer not licensed to do an insurance business in this State.
  (29) `Person' means a corporation, partnership, association, voluntary organization, individual, or any other entity, organization, or aggregation of individuals.
  (30) `Policy' means a contract of insurance.
  (31) `Premium' means payment given in consideration of a contract of insurance.
  (32) `Premium service agreement' means an agreement by which an insured or prospective insured promises to pay to an insurance premium service company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or insurance broker in payment of premiums on an insurance contract together with a service charge as authorized by Chapter 39 of this title.
  (33) `Professional bondsman' means as defined in Section 38-53-10.
  (34) `Property insurance' means every insurance against direct or indirect loss of or damage to any property resulting from fire, smoke, weather disturbances, climatic conditions, earthquake, volcanic eruption, rising waters, insects, blight, animals, war damage, riot, civil commotion, destruction by order of civil authority to prevent spread of conflagration or for other reason, water damage, vandalism, glass breakage, explosion of any water systems, collision, theft of automobiles and personal effects therein (but no other forms of theft insurance), loss of or damage to domestic or wild animals, and any other perils to property which in the discretion of the director or his designee form proper subjects of property insurance, if not specified in items (1), (7), (9), (27), (28), (37), or (39) of this section.
  (35) `Runner' means as defined in Section 38-53-10.
  (36) `Surety bondsman' means as defined in Section 38-53-10.
  (37) `Surety insurance' means becoming surety on, or guaranteeing the performance of, any lawful contract except an insurance contract; becoming surety on, or guaranteeing the performance of, any bonds and undertaking required or permitted in any judicial proceeding or required or permitted by any government or any agency or instrumentality of any government.
  (37.5) `Surplus lines insurance' means insurance in this State of risks located or to be performed in this State, permitted to be placed through a resident broker with a nonadmitted insurer eligible to accept the insurance, other than reinsurance, wet marine and transportation insurance, insurance independently procured, and life and health insurance and annuities. Excess and stop-loss insurance coverage upon group life, accident, and health insurance or upon a self-insured's life, accident, and health benefits program may be approved as surplus lines insurance.
  (38) `Surplus to policyholders' is the excess of total admitted assets over the liabilities of an insurer which is the sum of all capital and surplus accounts minus any impairment thereof.
  (39) `Title insurance' means insurance of the owners of real property and other persons lawfully interested therein against loss by reason of defective titles and undisclosed liens and encumbrances affecting the property."

"Commissioner", etc., means "Director"

SECTION 530. The 1976 Code is amended by adding:

  "Section 38-1-30. Wherever in any other chapter of Title 38 the term `Chief Insurance Commissioner' or `Commissioner' appears or is used, it shall be deemed to mean the Director of the Department of Insurance or his designee."

Name changed

SECTION 531. Section 38-2-10 of the 1976 Code is amended to read:

  "Section 38-2-10. Unless otherwise specifically provided by law, the following administrative penalties apply for each violation of the insurance laws of this State:
  (1) If the violator is an insurer or a health maintenance organization licensed in this State, the director or his designee shall (a) fine the violator in an amount not to exceed fifteen thousand dollars, or (b) suspend or revoke the violator's authority to do business in this State, or both. If the violation is wilful, the director or his designee shall (a) fine the violator in an amount not to exceed thirty thousand dollars, or (b) suspend or revoke the violator's authority to do business in this State, or both.
  (2) If the violator is a person, other than an insurer or a health maintenance organization, licensed by the director or his designee in this State, the director or his designee shall (a) fine the person in an amount not to exceed two thousand five hundred dollars, or (b) suspend or revoke the license of the person, or both. If the violation is wilful, the director or his designee shall (a) fine the person in an amount not to exceed five thousand dollars, or (b) suspend or revoke the license of the person, or both.
  The penalties in items (1) and (2) are in addition to any criminal penalties provided by law or any other remedies provided by law. The administrative proceedings in items (1) and (2) do not preclude civil or criminal proceedings from taking place before, during, or after the administrative proceeding."

New department provided for, etc.

SECTION 532. Chapter 3, Title 38 of the 1976 Code is amended to read:

"CHAPTER 3

The Department of
Insurance

  Section 38-3-10. There is established a separate and distinct department of this State, known as the Department of Insurance. The department must be managed and operated by a director appointed by the Governor upon the advice and consent of the Senate. The director is subject to removal by the Governor as provided in Section 1-3-240(B). The director shall be selected with special reference to his training, experience, technical knowledge of the insurance industry, and demonstrated administrative ability. The director may appoint or designate the person or persons who shall serve at the pleasure of the director to carry out the objectives or duties of the department as provided by law. Furthermore, the director may bestow upon his designee or deputy director any duty or function required of him by law in managing or supervising the Department of Insurance.

  Section 38-3-40. The director or his designee shall receive annual compensation as may be provided by the General Assembly and official expenses as provided by law for executing the duties and functions of the department.

  Section 38-3-60. The director or his designee must follow the general policies and broad objectives enacted by the General Assembly regarding the operation of the insurance industry in this State.

  Section 38-3-70. The department shall annually submit to the General Assembly, through the Governor, a report of its official acts and doings, together with a report of all insurers under the department doing business in this State, with condensed statements of their reports made to it, together with a statement of all licenses, taxes, and fees received by it through insurers and paid by it to the State Treasurer. The department shall report to the General Assembly any change which in its opinion should be made in the laws relating to insurance and other subjects pertaining to the department. By February first, it shall make to the Governor the recommendations called for in this section, to be transmitted to the General Assembly with its last annual report, including a statement of its receipts and disbursements.

  Section 38-3-80. The department shall have a seal with a suitable inscription, an impression of which must be filed with the Secretary of State.

  Section 38-3-100. The director or his designee is not subject to the State Employee Grievance Committee or any internal grievance procedure established at the Insurance Department. The director or his designee shall devote all of his working time to the duties of his office. Before taking the oath of office he shall sever all connections, either direct or indirect, except as a policyholder, with any insurance company or agency and shall maintain the severance during his tenure of office. If he becomes a candidate for public office or becomes a member of a political committee during tenure, his office as director or his designee must be immediately vacated.

  Section 38-3-110. The director or his designee have the following duties:
  (1) supervise and regulate the rates and service of every insurer in this State and fix just and reasonable standards, classifications, regulations, practices, and measurements of service to be observed and followed by every insurer doing business in this State. Nothing contained in this title authorizes or requires a review by the department or the director of any order of the director's designee or the deputy director under the Administrative Procedures Act. This item does not grant any additional authority to the director or his designee with regard to insurance rates other than the rate-making authority specifically granted to the director or his designee, or the Department of Insurance for certain kinds of insurance in other provisions of this title;
  (2) see that all laws of this State governing insurers or relating to the business of insurance are faithfully executed and make regulations to carry out this title and all other insurance laws of this State, the enforcement or administration of which is not otherwise specifically provided for;
  (3) furnish to domestic insurers required by law to report to the department the necessary blank forms for the reports required, which forms may be changed as necessary to secure full information as to the standing, condition, and any other information desired by the director or his designee;
  (4) report to the Attorney General or other appropriate law enforcement officials criminal violations of the laws relative to the business of insurance or the provisions of this title which he considers necessary to report;
  (5) institute civil actions, either through his office or through the Attorney General, relative to the business of insurance or the provisions of this title which he considers necessary to institute.

  Section 38-3-120. The director shall take the oath of office as prescribed for all state officers. Before entering upon or continuing the discharge of the duties of his office, he shall give bond to the State for the benefit of any person aggrieved by his unlawful or wrongful actions. This bond must be in the sum of fifty thousand dollars, with sufficient surety, to be approved by the State Treasurer, for the faithful performance of all the duties required of him under the law during the term of his office. The premium of the bond must be paid by the State.

  Section 38-3-130. The director shall appoint or employ actuaries, examiners, clerks, and other employees necessary for the proper execution of the work of the department.
  Section 38-3-140. The failure to do any act required by this title is considered a violation committed in part at the office of the director in Columbia.

  Section 38-3-150. All examinations or investigations provided by this title, unless otherwise provided by any other insurance laws of this State, may be conducted by the director or by one or more of his duly authorized assistants or agents. All hearings must be held by the director or by one of his duly authorized assistants or agents when authorized to do so in writing by the director. However, in any hearing concerning the adjustment of insurance rates the director or his designee may conduct the hearing.

  Section 38-3-160. The director or his duly appointed assistants or agents shall administer all oaths required in the discharge of his official duties.

  Section 38-3-170. All hearings, unless otherwise specifically provided, must be held at the time and place designated in a written notice given by the director or his designee to the person cited to appear at least thirty days before the designated date. The notice shall state the subject of the inquiry and specific charges, if any. It is sufficient to give notice either by delivering it to the person or by depositing it in the United States mail, postage prepaid, addressed to the last known address of the person and registered with return receipt requested.

  Section 38-3-180. The director or any assistants or agents appointed to conduct examinations may summon and compel the attendance of witnesses to testify in relation to any matter which is, by the provisions of this title or by any other insurance laws of this State, a subject of inquiry and investigation. The director or his designee has the power of a circuit judge to punish for contempt any witness failing to answer any summons or failing or refusing to testify when so required. The director or any assistants or agents appointed to conduct examinations may also administer oaths and affirmations to persons appearing as witnesses before them, and false testimony in any matter or proceeding is considered perjury and must be punished in accordance with the laws of this State.

  Section 38-3-190. Any person summoned by the Insurance Department to testify as a witness at any hearing must be paid for his actual mileage at the same rate as provided by law for state departments or divisions.

  Section 38-3-200. No order of the director or his designee is effective unless made in writing and signed by the director or by his authority.

  Section 38-3-210. Any order or decision made, issued, or executed by the director or his designee is subject to judicial review in accordance with the appellate procedures of the South Carolina Administrative Law Judge Division, as provided by law. An appeal from an order or decision under this section must be heard in the Administrative Law Judge Division, as provided by law. The administrative law judge or judges may not, under any terms, order a stay of enforcement of any order of the director or his designee to make good an impairment of capital or surplus or a deficiency in the amount of admitted assets.

  Section 38-3-220. Every certificate or other paper executed by the director or his designee in pursuance of any authority conferred upon him by law and sealed with the seal of the department and all copies of papers certified by the director or his designee and authenticated by the director's or his designee's seal may in all cases be used as evidence in any suit or proceeding in any court of this State with the same force and effect as the originals.

  Section 38-3-230. In any case or controversy where it is necessary to determine whether any insurance or other company, or agent thereof, is or has been licensed by the director or his designee to do business in this State, the certificate of the director or his designee under the seal of the department is admissible in evidence as proof of this authority.

  Section 38-3-240. (A) Beginning July 1, 1992, the department shall begin converting certain licenses required by statute or regulation to a biennial license fee collection period. These license fees must be collected as follows:
    (1) All insurers transacting business in this State including reciprocals, fraternal benefit associations, mutual insurers doing a property business only in no more than three counties, mutual insurers doing a property business only in a single county, and approved reinsurers shall pay a license fee for two years to the department by March 1, 1994, and every two years after that time by March 1st every even-numbered year.
    (2) An agency transacting the business of insurance in this State shall pay a license fee for two years to the department within thirty days after January 1, 1994, and every two years after that time within thirty days after January 1st every even-numbered year.
    (3) A broker transacting the business of insurance in this State shall pay a license fee for two years to the department within thirty days after May 1, 1994, and every two years after that time within thirty days after May 1st every even-numbered year.
    (4) An adjuster transacting business in this State shall pay a license fee for two years to the department within thirty days after August 1, 1993, and every two years after that time within thirty days after August 1st every odd-numbered year.
    (5) A motor vehicle damage appraiser transacting business in this State shall pay a license fee for two years to the department within thirty days after October 1, 1993, and every two years after that time within thirty days after October 1st every odd-numbered year.
    (6) An agent transacting the business of insurance in this State shall pay a license fee for two years to the department within thirty days after September 1, 1992, and every two years after that time within thirty days after July 1st every even-numbered year.
  (B) The fees described in this section must be earned fully when paid and are not refundable, proratable, or transferable. They must be collected in the amount and manner prescribed by statute or regulation before July 1, 1992, until the dates prescribed in subsection (A) when collections must be made pursuant to that subsection."

Name changed, etc.

SECTION 533. Chapter 5, Title 38 of the 1976 Code is amended to read:

"CHAPTER 5

Authority and
Requirements to Transact Business

  Section 38-5-10. Every insurer doing business in this State must be licensed and supervised by the director or his designee, with the following exceptions:
  (a) Without excluding other activities which may not constitute doing business in this State, a foreign or alien insurer is not considered to be doing business in this State, for purposes of this chapter, or Chapter 7, 13, 25, or 27, solely by reason of carrying on in this State any one or more of the following activities:
    (1) Maintaining bank accounts.
    (2) Creating or acquiring evidences of debt, mortgages, or liens on real or personal property, and enforcing rights in connection therewith in any action or proceeding, whether judicial, administrative, or otherwise.
    (3) Owning and controlling a subsidiary corporation incorporated in or transacting business within this State.
  (b) [Blank]

  Section 38-5-20. A charitable, religious, benevolent, or educational corporation, not operating for profit and in active operation for at least five years, may receive transfers of property conditioned upon its agreement to pay an annuity or lump-sum benefit to the transferor or his nominee without being subject to the insurance laws of this State. No corporation operating for profit, including nursing homes or any other type of business, is permitted to issue charitable or gift annuities without the director's or his designee's approval.

  Section 38-5-30. The director or his designee may license insurers, subject to other requirements of existing insurance laws, to transact the following kinds of insurance in this State:
  (a) Life insurance and annuities.
  (b) Accident and health insurance.
  (c) Property insurance.
  (d) Casualty insurance.
  (e) Surety insurance.
  (f) Marine insurance.
  (g) Title insurance.
  (h) Multiple lines insurance, meaning any two or more of the kinds of insurance listed in items (b), (c), (d), (e), (f), and (g) of this section.
  Each license issued is for an indefinite term unless revoked or suspended.

  Section 38-5-40. No life insurer may be licensed to write any other kinds of insurance listed in Section 38-5-30 except accident and health insurance. However, any life insurer licensed to transact other kinds of insurance immediately prior to March 18, 1964, shall continue to be so licensed if otherwise qualified.

  Section 38-5-50. No insurer licensed to write any of the kinds of insurance listed in items (c), (d), (e), (f), (g), and (h) of Section 38-5-30 may be licensed to write life insurance. However, any life insurer licensed to transact other kinds of insurance immediately prior to March 18, 1964, shall continue to be so licensed if otherwise qualified.

  Section 38-5-60. For purposes of calculating deductions for reserves, insurers not licensed in this State may be approved as reinsurers by the director or his designee for an indefinite term only if:
  (1) Upon initial application a fee of four hundred dollars is enclosed, and, every two years after that time, a fee of four hundred dollars is paid by March first.
  (2) There is filed with the department a power of attorney approved as to form by the director or his designee and authorizing the director to accept service of process in behalf of the reinsurer.
  (3) There is filed with the department the reinsurer's annual statement and the reinsurer's most recent report of examination, and after that time each annual statement and report of examination is filed.
  (4) The reinsurer meets the capital and surplus requirements of South Carolina law with respect to the lines to be reinsured.

  Section 38-5-70. Every insurer shall, before being licensed, appoint in writing the director and his successors in office to be its true and lawful attorney upon whom all legal process in any action or proceeding against it must be served and in this writing shall agree that any lawful process against it which is served upon this attorney is of the same legal force and validity as if served upon the insurer and that the authority continues in force so long as any liability remains outstanding in the State. Copies of the appointment, certified by the director, are sufficient evidence of the appointment and must be admitted in evidence with the same force and effect as the original might be admitted.

  Section 38-5-80. Before granting the original certificate of authority or license to a domestic insurer to do business in this State, the director or his designee must be satisfied by proper evidence that:
  (a) The insurer is duly qualified to transact business under the laws of this State.
  (b) The insurer has filed with him an affidavit of its president or other chief officer that it has not violated this title in the past year and that it accepts the terms and obligations of this title as part of the consideration for license.
  (c) The insurer pays all taxes and performs all duties required by law.
  (d) The reserves of the insurer are adequate for the protection of policyholders of this State.
  (e) The insurer's directors and officers are competent, trustworthy, and have a good business reputation and that none of the directors and officers have been convicted of a crime in any jurisdiction involving fraud, dishonesty, or like moral turpitude or convicted of violating an insurance statute of any jurisdiction.
  (f) The insurer has employed one or more persons residing in this State with adequate experience and training to manage properly its business and affairs.
  (g) The insurer has not entered into any management contract, agency agreement, or other agreement which may materially affect its financial condition so as to render its proceedings hazardous to the public or to its policyholders.
  (h) The insurer has made adequate reinsurance arrangements if required.
  (i) The insurer's proposed method of operation, when considered in light of its financial condition and the absence of any prior operating experience, will not likely render its proceedings hazardous to the public or to its policyholders.
  (j) The reserve basis to be used by the insurer will be adequate for the protection of policyholders in this State.
  (k) The insurer's principal place of business and primary executive, administrative, and home offices and all original books and records of the insurer are located and maintained in this State. The provisions of this subsection apply to domestic health maintenance organizations.
  Item (k) of this section does not apply to any domestic insurer whose primary executive, administrative, and home offices were located outside this State on July 1, 1987.
  If subsequently the director or his designee is of the opinion that a condition exists which would have prohibited him from issuing the original certificate of authority or license to the insurer, then that condition also constitutes a ground for license revocation under Section 38-5-120.

  Section 38-5-90. Before granting the original certificate of authority or license to a foreign or alien insurer to do business in this State, the director or his designee must be satisfied by proper evidence that:
  (a) The insurer is duly qualified to transact business under the laws of this State.
  (b) The insurer has filed with him an affidavit of its president or other chief officer that it has not violated this title in the past year and that it accepts the terms and obligations of this title as part of the consideration for license.
  (c) The insurer pays all taxes and performs all duties required by law.
  (d) The reserves of the insurer are adequate for the protection of policyholders of this State.
  (e) The insurer's directors and officers are competent, trustworthy, and have a good business reputation.
  (f) The insurer has employed one or more persons residing in this State with adequate experience and training to manage properly its business and affairs relating to its policies in South Carolina.
  (g) The insurer has not entered into any management contract, agency agreement, or other agreement which may materially affect its financial condition so as to render its proceedings hazardous to the public or to its policyholders.
  (h) The insurer has made adequate reinsurance arrangements if required.
  (i) The insurer's proposed method of operation, when considered in light of its financial condition and the absence of any prior operating experience, will not likely render its proceedings hazardous to the public or to its policyholders.
  (j) The insurer is safe and solvent.
  (k) The insurer's dealings are fair and equitable.
  (l) The insurer conducts its business in a manner not contrary to the public interest.
If subsequently the director or his designee is of the opinion that a condition exists which would have prohibited him from issuing a certificate of authority or license to the insurer, then that condition also constitutes a ground for license revocation under Section 38-5-120.

  Section 38-5-100. No foreign or alien insurer may be licensed to do business in this State when its name is identical with that of any active insurer previously licensed to do business in this State which has engaged in business therein for one year or more. No foreign or alien insurer may be licensed to do business in this State when its name is so nearly similar to that of any active insurer previously licensed to do business in this State which has engaged in business therein for one year or more so as to lead to confusion and uncertainty.

  Section 38-5-110. It is unlawful for the Secretary of State to issue any charter or grant any amendments of charter to any insurer or permit any foreign or alien insurer to do business within this State without the written approval of the director or his designee.

  Section 38-5-120. (A) The director or his designee shall revoke or suspend certificates of authority granted to an insurer and its officers and agents if he is of the opinion upon examination or other evidence that one or more of the following exist:
    (1) The insurer is in an unsound condition.
    (2) The insurer has not complied with the law or with the provisions of its charter.
    (3) The insurer's condition renders its proceedings hazardous to the public or its policyholders. For the purpose of the application of this item, one or more of the following standards may be considered by the director or his designee in determining whether the continued operation of an insurer transacting insurance business in this State is hazardous to the public or its policyholders:
      (a) adverse findings reported in financial condition and market conduct examination reports;
      (b) the National Association of Insurance Commissioners Insurance Regulatory Information System and its related reports;
      (c) the ratios of commission expense, general insurance expense, policy benefits, and reserve increases as to annual premium and net investment income which could lead to an impairment of capital and surplus;
      (d) whether the insurer's asset portfolio when viewed in light of current economic conditions is not of sufficient value, liquidity, or diversity to assure the company's ability to meet its outstanding obligations as they mature;
      (e) whether the ability of an assuming reinsurer to perform and the insurer's reinsurance program provides sufficient protection for the company's remaining surplus after taking into account the insurer's cash flow and the classes of business written as well as the financial condition of the assuming reinsurer;
      (f) whether the insurer's operating loss in the last twelve months or a shorter time including, but not limited to, net capital gain or loss, change in nonadmitted assets, and cash dividends paid to shareholders, is greater than fifty percent of the insurer's remaining surplus as regards policyholders in excess of the minimum required;
      (g) whether an affiliate, a subsidiary, or a reinsurer is insolvent, threatened with insolvency, or delinquent in payment of its monetary or other obligations;
      (h) contingent liabilities, pledges, or guaranties which individually or collectively involve a total amount which in the opinion of the director or his designee may affect the solvency of the insurer;
      (i) whether a `controlling person' of an insurer is delinquent in the transmitting to or payment of net premiums to the insurer;
      (j) the age and collectibility of receivables;
      (k) whether the management of an insurer, including officers, directors, or other persons who directly or indirectly control the operation of the insurer, fails to possess and demonstrate the competence, fitness, and reputation necessary to serve the insurer in that position;
      (l) whether management of an insurer has failed to respond to inquiries relative to the condition of the insurer or has furnished false and misleading information concerning an inquiry;
      (m) whether management of an insurer has filed a false or misleading sworn financial statement, released a false or misleading financial statement to lending institutions or to the general public, made a false or misleading entry, or omitted an entry of a material amount in the books of the insurer;
      (n) whether the insurer has grown so rapidly and to an extent that it lacks adequate financial and administrative capacity to meet its obligations in a timely manner;
      (o) whether the company has experienced or will experience in the foreseeable future cash flow or liquidity problems.
    (4) The true value of the insurer's assets, if it is a life insurer, is less than its liabilities, exclusive of its capital.
    (5) The officers or agents of an insurer refuse to submit to examination or to perform a legal obligation relative to an examination.
    (6) The insurer has not complied with a lawful order of the director or his designee.
  (B) Notice of revocation and suspension must be published in a newspaper of general circulation in this State. No new business may be done by the insurer or its agents in this State while the default or disability continues nor until its authority to transact business is restored by the director or his designee.
  (C) Notwithstanding the provisions of subsection (A), if the director or his designee determines that an insurer is in an unsound condition or in a hazardous condition provided in subsection (A)(1) and (3), he may issue an order requiring the insurer to:
    (1) reduce the total amount of present and potential liability for policy benefits by reinsurance;
    (2) reduce, suspend, or limit the volume of business being accepted or renewed;
    (3) reduce general insurance and commission expenses by specified methods;
    (4) increase the insurer's capital and surplus;
    (5) suspend or limit the declaration and payment of dividends by an insurer to its stockholders or to its policyholders;
    (6) file reports in a form acceptable to the director or his designee concerning the market value of an insurer's assets;
    (7) limit or withdraw from certain investments or discontinue certain investment practices to the extent the director or his designee considers necessary;
    (8) document the adequacy of premium rates in relation to the risks insured;
    (9) file, in addition to regular annual statements, interim financial reports on the form adopted by the National Association of Insurance Commissioners or on a format approved by the director or his designee;
    (10) disregard credit or an amount receivable resulting from transactions with a reinsurer which is insolvent, impaired, or otherwise subject to a delinquency proceeding;
    (11) make appropriate adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates;
    (12) refuse to recognize the stated value of accounts receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor;
    (13) increase the insurer's liability in an amount equal to a contingent liability, pledge, or guarantee not otherwise included if there is a substantial risk that the insurer will be called upon to meet the obligation undertaken within the next twelve months; or
    (14) take other action he considers appropriate.

  Section 38-5-130. The director or his designee may, in lieu of license revocation or suspension as provided by Section 38-5-120, impose a monetary penalty as provided in Section 38-2-10 for each violation or failure of compliance or refusal to submit or perform as prescribed therein. Series of acts by an insurer which merely implement a basic violation and are not separate and distinct violations of an independent nature are considered to be part of the basic violation and only one penalty may be imposed thereon.

  Section 38-5-140. Unless the grounds for revocation relate only to the financial condition or soundness of the insurer or to a deficiency in its assets, the director or his designee shall notify the insurer not less than thirty days before revoking its authority to do business in this State and he must specify in the notice the particulars of the alleged violation of the law or its charter or grounds for revocation and a proper opportunity must be offered the insurer to be heard.

  Section 38-5-150. While the certificate of authority is suspended, no domestic insurer or any of its officers may pay out any funds belonging to the insurer without first receiving the director's or his designee's approval.

  Section 38-5-160. If he considers it necessary, the director or his designee may apply to a judge of the circuit court to issue an injunction restraining a domestic insurer whose certificate of authority has been suspended, in whole or in part, from proceeding further with its business. The judge may immediately issue the injunction and, upon notice and after a full hearing of the matter, may (a) dissolve or modify the injunction or make it permanent, (b) make all orders and judgments necessary in the matter, and (c) appoint agents or a receiver to take possession of the property and effects of the insurer and to settle its affairs, subject to any rules and orders the court prescribes.

  Section 38-5-170. The certificate of authority, agents' appointments and licenses, rates, and other items which the director or his designee may allow which are in existence at the time any insurer licensed to transact the business of insurance in this State transfers its corporate domicile to this or any other state by merger, consolidation, or any other lawful method shall continue in effect upon such transfer if the insurer remains duly qualified to transact the business of insurance in this State. All outstanding policies of any transferring insurer shall remain in effect and need not be endorsed as to the new name of the company or its new location unless so ordered by the director or his designee. Every transferring insurer shall file new policy forms with the department on or before the effective date of the transfer but may use existing policy forms with appropriate endorsements if allowed by, and under conditions as approved by, the director or his designee. Every transferring insurer shall notify the director or his designee of the details of the proposed transfer and shall file promptly any resulting amendments to corporate documents filed or required to be filed with the department."

Name changed, etc.

SECTION 534. Chapter 7, Title 38 of the 1976 Code is amended to read:

"CHAPTER 7

Fees and Taxes

  Section 38-7-10. (A) Every insurer, except mutual benevolent aid associations and fraternal benefit associations, before transacting business in this State shall pay a license fee of eight hundred dollars to the department and after that initial payment pay to the department a biennial license fee of eight hundred dollars by March first every other year.
  (B) In addition to the license fees required in subsection (A), the director or his designee shall collect from each insurer licensed by him to do business in this State a license fee of four hundred dollars for each kind of insurance for which the insurer is licensed as listed in Section 38-5-30(a) through (g). Each mutual insurer doing a property business only in no more than three counties shall pay a biennial fixed license fee of one hundred dollars and each mutual insurer doing a property business only in a single county shall pay a biennial fixed license fee of forty dollars. The license fees required in this subsection must be paid to the director or his designee before the insurer transacts business in this State and after that initial payment must be paid biennially to the director or his designee by March first every two years.

  Section 38-7-20. In addition to all license fees and taxes otherwise provided by law, there is levied upon each insurance company licensed by the director or his designee an insurance premium tax based upon total premiums, other than workers' compensation insurance premiums, and annuity considerations, collected by the company in the State during each calendar year ending on the thirty-first day of December. For life insurance, the insurance premium tax levied herein is equal to three-fourths of one percent of the total premiums collected. For all other types of insurance, the insurance premium tax levied herein is equal to one and one-fourth percent of the total premiums collected. In computing total premiums, return premiums on risks and dividends paid or credited to policyholders are excluded.
  The insurance premium taxes collected by the director or his designee pursuant to this section must be deposited by him in the general fund of the State.

  Section 38-7-30. Any expenses, including expenses of counsel, detectives, and officers, incurred by the discrimination in rates, must be defrayed by the fire insurance companies doing business in this State, and a tax of one percent on the gross premium receipts less premiums returned on canceled policy contracts and less dividends and returns of unabsorbed premium deposits of all fire insurance companies is levied for this purpose, to be collected by the director or his designee as other taxes on fire insurance companies are collected. The director or his designee shall keep a separate account of all monies received and disbursed under the provisions of this section and shall include the account in his annual report.

  Section 38-7-40. Each fire insurer shall pay to the director or his designee an amount equal to one percent of all premiums written on fire insurance required to be reported under Section 38-7-70 during the preceding year ending December thirty-first or for such portion of that period as the insurer has done business in this State.

  Section 38-7-50. Every insurer insuring employers in this State against liability for personal injuries to their employees or death caused by the injuries, under the provisions of Title 42, shall pay a tax upon the premiums received whether in cash or notes in this State, or on account of business done in this State, for such insurance in this State at the rate of four and one-half percent of the amount of the premiums. For fiscal year 1990-91, the tax is at the rate of premiums. For fiscal year 1991-92 and thereafter, the tax is at the rate of two and one-half percent of the discrimination in rates, must be defrayed by the fire insurance companies doing business in this State, and a tax of one percent on the gross premium receipts less premiums returned on canceled policy contracts and less dividends and returns of unabsorbed premium deposits of all fire insurance companies is levied for this purpose, to be collected by the director or his designee as other taxes on fire insurance companies are collected. The director or his designee shall keep a separate account of all monies received and disbursed under the provisions of this section and shall include the account in his annual report.

  Section 38-7-40. Each fire insurer shall pay to the director or his designee an amount equal to one percent of all premiums written on fire insurance required to be reported under Section 38-7-70 during the preceding year ending December thirty-first or for such portion of that period as the insurer has done business in this State.

  Section 38-7-50. Every insurer insuring employers in this State against liability for personal injuries to their employees or death caused by the injuries, under the provisions of Title 42, shall pay a tax upon the premiums received whether in cash or notes in this State, or on account of business done in this State, for such insurance in this State at the rate of four and one-half percent of the amount of the premiums. For fiscal year 1990-91, the tax is at the rate of three and one-half percent of the amount of the premiums. For fiscal year 1991-92 and thereafter, the tax is at the rate of two and one-half percent of the amount of the premiums. This tax is in lieu of all other taxes on these premiums and must be assessed and collected as provided in this chapter. However, the insurers must be credited with all canceled or returned premiums actually refunded during the year on workers' compensation insurance including any unused premiums refunded or credited to policyholders as dividends. If an insurer fails or refuses to make the return required by Section 38-7-60, the director or his designee shall assess the tax against the insurer at the rate provided for in this chapter on the amount of premiums he considers just and the proceedings thereon must be the same as if the return had been made.

  Section 38-7-60. (1) Not later than March first of each year, every insurer licensed by the director or his designee shall file with him a return of premiums collected by the insurer in the State during the immediately preceding calendar year ending on December thirty-first. The return must be made on forms prescribed by the director or his designee and must be made under oath by the insurer's employee or representative responsible for the preparation of fee and tax returns, as well as the insurer's chief executive officer.
  (2) The license fees imposed in Section 38-7-20 must be fully reported on the return filed in accordance with subsection (1) of this section.
  (3) The premium and other taxes imposed on insurers pursuant to Sections 38-7-20, 38-7-30, 38-7-40, 38-7-50, and 38-7-90 must be paid to the director or his designee in quarterly installments on or before March first, June first, September first, and December first of each calendar year. The quarterly payments must be calculated and paid as follows:
    (a) The quarterly installments paid on or before June first, September first, and December first must each be computed based upon one-fourth of the total premiums collected by the insurer during the immediately preceding calendar year ending on December thirty-first. The quarterly installments for June first, September first, and December first must be reported on forms prescribed by the director or his designee.
    (b) The quarterly installment paid on or before March first must equal the difference between the total tax liability of the insurer for the immediately preceding calendar year ending on December thirty-first and the sum of the quarterly installments paid by the insurer on June first, September first, and December first of that immediately preceding calendar year. The quarterly installment for March first must be reported on the returns filed in accordance with subsection (1) of this section. An insurer whose quarterly tax installments are less than one thousand dollars per payment may elect not to pay its tax liability on a quarterly basis and, instead, may elect to report and pay its entire tax liability on the return filed in accordance with subsection (1) of this section.
  (4) The director or his designee may suspend or revoke the license of any insurer which fails to make returns and pay fees and taxes as required in this section. The Attorney General shall bring suit in the name of the State to collect any unpaid portion of the fees or taxes required by law.

  Section 38-7-70. Each fire insurer carrying on business in this State shall annually return to the director or his designee by March first a just and true account, verified by oath, of all premiums received during the preceding year ending December thirty-first from all fire insurance on all property located or that may be located in this State and from all fire insurance business done in this State. In the report the insurer shall allocate the premiums on this business to the county in which the property is located, regardless of where the insurance is written or premiums collected.

  Section 38-7-80. Every fire insurer shall keep accurate books of account of all business done by it on fire insurance required to be reported under the provisions of Section 38-7-70. If it is apparent the return is fraudulent or dishonest, the director or his designee shall investigate the return and collect the amount he finds due. Every fire insurer which neglects to keep books of account as required by this section, neglects or fails to report or pay any of the money due on premiums as required by Section 38-7-40 or 38-7-70, or is found upon examination to have made a false return of business done by it shall for each offense be subject to the penalty provisions of Section 38-2-10, to be applied to the purposes prescribed in Section 23-9-410.

  Section 38-7-90. (A) When the laws of any other state or the regulations or actions of any public official of another state subject, or would subject, insurance companies chartered by this State, or their agents or representatives, to fees, taxes, obligations, conditions, restrictions, or penalties for the privilege of doing business in that state which are greater than those required by this State of similar insurers organized or domiciled in the other state by or in this State for the privilege of doing business herein, then all similar insurers organized or domiciled in that state are subjected to the greater requirements which are or would be imposed by or in that state upon similar insurers of this State.
  (B) This section must be applied, regardless of whether an insurer chartered by this State is doing business in the other state. The application of this section is based upon a comparison of the aggregate requirements imposed by this State with the aggregate requirements imposed by the other state. Taxes, fees, or other obligations imposed by municipalities are considered in the application of this section.
  (C) This section is effective for all insurance premiums collected after December 31, 1989, and to all insurance premium tax returns filed beginning with the quarterly return due September 1, 1990, and all quarterly and annual returns filed after that time.

  Section 38-7-110. The State may bring suit in court for back fees, taxes, penalties, and interest imposed by this title at any time within ten years from the date on which they should have been paid. On collection of the fees and taxes, they must be distributed as provided by the statutes under which they were levied.

  Section 38-7-120. (A) As soon as practicable after each tax return or other document is filed, the director or his designee, when fees and taxes are involved, shall examine the document and compute the fees and taxes due. If the fees and taxes found due are greater than the amount paid, the excess must be paid to the director or his designee within fifteen days after notice of the amount due is mailed by the director or his designee. If the amount due is not paid within the fifteen-day period, a penalty of five percent of the amount due may be assessed.
  (B) If the additional fees and taxes found to be due upon the examination of the document are not paid within fifteen days of notice by the director or his designee, interest must be added to the amount of the deficiency at the rate of five percent for each month or fraction of a month from the date the fees or taxes originally were due until the date the deficiency is paid. The total maximum interest to be charged may not exceed twenty-five percent.
  (C) Up to one year after the date upon which an original tax return or other document is required to be filed, an insurer or other person may file an amended return to correct errors of overpayment or other errors made by the insurer or person in the original return or document. No amended return or document may be filed by an insurer or a person or accepted by the director or his designee after one year. No tax adjustment, deduction, or credit may be made or taken by the insurer or person, or allowed by the director or his designee, on a return or document filed after one year for errors claimed to have been made by the insurer or other person in the original return or document.
  (D) If, upon examination of an original or amended return or document, it appears to the director or his designee that the amount of fees or taxes due is less than the amount paid, the excess must be ordered refunded by the or his designee. No refunds may be made with respect to monies distributable to a governmental unit after the distribution has been made.
  (E) This section does not apply to the continuation of biennial license fees for agencies, brokers, appraisers, or adjusters.

  Section 38-7-130. (a) When the State charges or levies any fees, taxes, penalties, or interest against any insurer or other person, or any fees, taxes, penalties, or interest are assessed by the director or his designee and the State or director or his designee claims the payment of the fees, taxes, penalties, or interest so charged or assessed, or institutes a proceeding to collect them, the insurer or other person against whom the fees, taxes, penalties, or interest is charged or assessed or against whom the proceeding is instituted, if he conceives the fees or taxes to be unjust or illegal, may pay the fees or taxes and any penalties, or interest thereon, under protest in writing, with the type of funds the State Treasurer or director or his designee is authorized to receive. Upon this payment, the director or his designee shall pay the fees, taxes, penalties, or interest collected by him into the state treasury giving notice at the time to the State Treasurer that the payment was made under protest.
  (b) Any insurer or other person paying any fees, taxes, penalties, or interest under protest must within thirty days after making the payment bring an action against the director for the recovery thereof, in the Court of Common Pleas for Richland County. If it is determined in that action that the fees, taxes, penalties, or interest was unjustly or illegally collected, the court must so certify of record, and the State Treasurer shall refund the fees, taxes, penalties, or interest to the payor.

  Section 38-7-140. If any person or any officer or employee of any insurer or other person, with intent to evade any requirement of this title or any lawful requirement of the director or his designee, fails to pay any fees, taxes, penalties, or interest, fails to make, sign, or verify any return, or fails to supply any information required by this title, or with like intent makes, renders, signs, or verifies any false or fraudulent information, that person is guilty of a misdemeanor and, upon conviction, must be fined an amount not to exceed five thousand dollars or imprisoned for a term not to exceed five years, or both.

  Section 38-7-150. The director or his designee may, upon making a record of his reasons therefor, waive or reduce any of the penalties or interest imposed under the provisions of this title pertaining to fees and taxes.

  Section 38-7-160. This title may not be construed as preventing any municipality from levying and collecting license fees or taxes in accordance with its ordinances. However, no municipality may charge a license fee to fire insurers or their agents licensed by the director or his designee in any other manner than on a percentage of the premiums collected in the municipality or realized from risks located within the limits of the municipality, or both, the license fee not to exceed two percent of the premiums collected in the municipality and realized from risks located in the municipality, except in cities of fifty thousand inhabitants or more, where not exceeding five percent may be charged. Preference must be given hereunder to the municipality wherein the insured property is located, and, if a license is levied against the insuring company on such basis, that company may not be subject to a similar license from a municipality wherein it may collect the premium for such transaction.

  Section 38-7-170. All fees, taxes, penalties, and interest collected by the director or his designee under this title, unless specifically provided otherwise, must be deposited by the director or his designee in the general fund of the State.

  Section 38-7-180. An insurance company exempt from federal income tax pursuant to Section 501(c)(3) or (4) of the Internal Revenue Code of 1986, and which insures only churches and their property, is exempt from taxes levied on insurance companies in Sections 38-7-20, 38-7-30, and 38-7-40. To provide exemption from federal income tax under Section 501(c)(3) or (4) of the Internal Revenue Code of 1986, the company shall provide to the director or his designee a certificate issued by the Internal Revenue Service demonstrating the company's tax-exempt status. The company shall further provide evidence satisfactory to the director or his designee that it only insures churches and their property."

Name changed, etc.

SECTION 535. Chapter 9, Title 38 of the 1976 Code is amended to read:

"CHAPTER 9

Capital, Surplus, Reserves, and Other Financial
Matters

  Section 38-9-10. (A)(1) Before licensing a stock insurer, the director or his designee shall require the insurer to be possessed of capital which must be maintained at all times and surplus, twenty-five percent of which must be maintained at all times, in amounts not less than:
If licensed to write Capital Surplus
(a) life: $ 600,000 $ 600,000
(b) accident and health: 600,000 600,000
(c) life, accident,
        and health: 1,200,000 1,200,000
(d) property: 1,200,000 1,200,000
(e) casualty: 1,200,000 1,200,000
(f) surety: 1,200,000 1,200,000
(g) marine: 1,200,000 1,200,000
(h) title: 600,000 600,000
(i) multiple lines: 1,500,000 1,500,000
  (2) The director or his designee may require additional initial capital and surplus based on the type or nature of business transacted, and the initial capital and surplus of the insurer must consist of cash or marketable securities which are eligible investments under Section 38-11-40.
  (B) If the surplus of a stock insurer is less than twenty-five percent of the surplus initially required, as set forth in subsection (A), the insurer is considered delinquent, and the director or his designee may begin delinquency proceedings as provided by Chapter 27 of this title.
  (C) If the capital of a stock insurer is impaired, the insurer is delinquent, and the director or his designee shall begin delinquency proceedings.

  Section 38-9-20. (A)(1) Before licensing a mutual insurer, the director or his designee shall require the insurer to be possessed of surplus of not less than:
Surplus which must
be possessed
  If licensed to write: at time of licensing
  (b) accident and health: 1,200,000
  (c) life, accident, and health: 2,400,000
  (d) property: 2,400,000
  (e) casualty: 2,400,000
  (f) surety: 2,400,000
  (g) marine: 2,400,000
  (h) title: 1,200,000
  (i) multiple lines: 3,000,000
    (2) The director or his designee may require additional initial surplus based on the type or nature of business transacted, and the initial surplus of the insurer must consist of cash or marketable securities which are eligible investments under Section 38-11-40.
  (B) If the surplus of a licensed mutual insurer is less than the sum of the capital and minimum surplus required to be maintained by a stock insurer licensed to write the same kind or kinds of business, the mutual insurer is considered delinquent, and the director or his designee may begin delinquency proceedings as provided by Chapter 27 of this title.
  (C) If the surplus of a licensed mutual insurer is less than the minimum capital required to be possessed by a stock insurer licensed to write the same kind or kinds of business, the mutual insurer is delinquent, and the director or his designee shall begin delinquency proceedings.

  Section 38-9-30. Sections 38-9-10 and 38-9-20 do not apply to an insurer that is licensed to do business in this State on July 1, 1991, if the insurer continues to remain licensed in this State and continues to maintain at least the following minimum capital and surplus amounts if a stock insurer or minimum surplus if a mutual insurer:
  (1) An insurer, if possessed of capital and surplus amounts on December 31, 1990, that were in compliance with the law at that time, but which are less than the minimums required to be maintained by Section 38-9-10, shall maintain not less than the amount of capital stated in its 1990 annual statement and maintain surplus of not less than twenty-five percent of that amount of capital. If the surplus of the insurer is reduced to less than twenty-five percent of this minimum amount of required capital, the insurer is considered delinquent, and the director or his designee may begin delinquency proceedings as provided by Chapter 27 of this title. If the minimum capital required to be maintained by this section by the insurer becomes impaired, the insurer is delinquent, and the director or his designee shall begin delinquency proceedings. If the capital is increased to an amount greater than the amount possessed on December 31, 1990, the amount of surplus that must be maintained after the increase is twenty-five percent of that greater amount of capital, and if this amount is not maintained, the director or his designee may begin delinquency proceedings as provided by Chapter 27 of this title. This increased amount of capital must not be reduced to an amount less than the amount required by Section 38-9-10, and if it becomes reduced or impaired, the insurer is delinquent, and the director or his designee shall begin delinquency proceedings.
  (2) A mutual insurer, if possessed of surplus on December 31, 1990, that was in compliance with the law at that time but is less than the minimum required to be maintained by Section 38-9-20, shall maintain not less than the amount of surplus stated in its 1990 annual statement. If the surplus of the insurer is reduced to less than eighty percent of the amount shown in its 1990 annual statement, the insurer is considered delinquent, and the director or his designee may begin delinquency proceedings as provided by Chapter 27 of this title. If the surplus of the insurer is increased to an amount greater than the amount possessed on December 31, 1990, eighty percent of that greater amount of surplus, or the minimum amount required to be maintained by Section 38-9-20, whichever amount is the lesser, must be maintained after the increase, and if it is not maintained, the insurer is considered delinquent, and the director or his designee may begin delinquency proceedings as provided by Chapter 27 of this title.
  (3) A domestic stock insurer possessed of the minimum capital and surplus required by item (1) or a domestic mutual insurer possessed of the minimum surplus required by item (2), which is the subject of a change of control defined in Chapter 21 of this title, the Insurance Holding Company Regulatory Act, immediately shall increase its minimum capital and surplus if a stock insurer, or its minimum surplus if a mutual insurer, to comply with the minimums in Section 38-9-10 or 38-9-20, whichever is applicable.

  Section 38-9-40. The director or his designee shall notify each licensed insurer that does not comply with Section 38-9-10 or 38-9-20 of the amounts of capital and surplus if a stock insurer, or the amount of surplus if a mutual insurer, the insurer shall maintain in order to continue to remain licensed in this State. A schedule of the amounts required to be maintained by each insurer so notified must be published in all succeeding annual reports of the Insurance department that are submitted to the General Assembly through the Governor, as required by Section 38-3-70. This schedule must be revised annually as to those insurers whose minimum capital and surplus requirements are increased periodically as required by Section 38-9-30.

  Section 38-9-50. An insurer that fails to meet the minimum capital and surplus requirements of this chapter, but which continues to remain licensed by virtue of Section 38-9-30, shall confine its business to the kinds of insurance for which it was licensed on July 1, 1988. If the insurer desires to write additional kinds of insurance, it shall comply with the capital and surplus requirements of Section 38-9-10 or 38-9-20 as applicable.

  Section 38-9-60. Sections 38-9-30 to 38-9-50 may not be construed as a limitation of any authority conferred elsewhere by this title upon the director or his designee to deny or revoke or suspend a license of an insurer.

  Section 38-9-70. The director or his designee in his official capacity shall take and hold, in trust, deposits made by domestic insurers for the purpose of complying with the laws of any other state to enable the insurer to do business in that state. The insurer making the deposit is entitled to the income and may with the consent of the director or his designee and when not forbidden by the law under which the deposit is made, change, in whole or in part, the securities which compose the deposit for other solvent securities of equal par value approved by the director or his designee.

  Section 38-9-80. (A) The director or his designee shall require every insurer, other than fraternal benefit societies, transacting, or desiring to transact, business in this State to deposit with him certificates of deposit of building and loan associations chartered by South Carolina or federal savings and loan associations located within the State in which deposits are guaranteed by the Federal Savings and Loan Insurance Corporation, not to exceed the amount covered by insurance, or of national banks located within the State or banks chartered by South Carolina in which deposits are guaranteed by the Federal Deposit Insurance Corporation, not to exceed the amount covered by insurance; or other securities which:
    (1) qualify as legal investments under the laws of this State for public sinking funds;
    (2) are not in default as to principal or interest;
    (3) have a current market value of not less than ten thousand nor more than two hundred thousand dollars, as determined by the director or his designee pursuant to the standards promulgated by the department.
  (B) The director or his designee shall prescribe the amount, within the limits of this section, of the securities required, and he subsequently may increase or decrease the amount required.
  (C) Notwithstanding the limitations in this section as to the amount of deposits required, the director or his designee may require an insurer to deposit an amount of securities in excess of the limits based on his consideration of the following:
    (1) adverse findings reported in financial condition and market conduct examination reports;
    (2) the National Association of Insurance Commissioners Insurance Regulatory Information System and its related reports;
    (3) the ratios of commission expense, general insurance expense, policy benefits, and reserve increases as to annual premium and net investment income which could lead to a significant adjustment to an insurer's capital and surplus;
    (4) whether the insurer's asset portfolio when viewed in light of current economic conditions is not of sufficient value, liquidity, or diversity to assure the insurer's ability to meet its outstanding obligations as they mature;
    (5) whether an insurer had a significant operating loss in the last twelve months or a shorter time;
    (6) whether an affiliate, subsidiary, or a reinsurer is insolvent, threatened with insolvency, or delinquent in payment of its monetary or other obligations;
    (7) contingent liabilities, pledges, or guaranties which individually or collectively involve a total amount which in the opinion of the director or his designee may affect the solvency of the insurer;
    (8) whether the management of an insurer, including officers, directors, or other persons who directly or indirectly controls the operation of the insurer, fails to possess and demonstrate the competence, fitness, and reputation necessary to serve the insurer in that position;
    (9) whether management has failed to respond to inquiries relative to the condition of the insurer or has furnished false and misleading information concerning an inquiry;
    (10) whether the insurer has grown so rapidly and to an extent that it lacks adequate financial and administrative capacity to meet its obligations in a timely manner;
    (11) whether the insurer has experienced or will experience in the foreseeable future cash flow or liquidity problems.

  Section 38-9-90. The bonds or other securities required by Section 38-9-80 must be held as security for the payment of claims against the insurer arising out of its failure to meet obligations incurred in this State. Policyholders ratably and without preference and general creditors ratably, without preference, and subordinate to the claims of policyholders shall have a lien on the bonds or other securities for the amount of their claim.

  Section 38-9-100. If a qualified insurer deposits with an officer or official body of another state for the protection of all its policyholders, or all its policyholders and creditors, acceptable securities not in default as to principal or interest and of a current market value of not less than one million dollars, and delivers to the director or his designee a certificate to that effect, authenticated by the appropriate state official holding the deposit, the insurer may be relieved of making the deposit required by Section 38-9-80. For the purpose of this section a `qualified insurer' is a licensed stock insurer possessed of at least ten million dollars of capital and surplus or a licensed mutual, fraternal, or reciprocal insurer possessed of at least ten million dollars of surplus, according to its most recent annual statement filed with the director or his designee and, in the discretion of the director or his designee, may include eligible surplus lines insurers which meet these capital and surplus requirements. For the purpose of this section, `acceptable securities' means bonds of the United States or of a state of the United States, or of a municipality or county, upon which is pledged the full faith and credit of the appropriate political division, or bonds or notes secured by mortgages or deeds of trust on otherwise unencumbered real estate of a market value of not less than double the amount loaned, or other securities approved by the director or his designee.

  Section 38-9-110. A domestic company, in order to comply with the laws of any other state or territory of the United States, may make a voluntary deposit with the director or his designee in excess of the amount required by Section 38-9-80. This excess deposit is subject to all other applicable provisions of the laws of this State relating to the deposits of insurers, except that the excess deposit must be for the protection of all the company's policy obligations, ratably and without preference, notwithstanding the provisions of Section 38-9-90. However, a domestic company making this voluntary deposit is relieved of making the deposit required by Section 38-9-80 if the company meets the definition of a qualified insurer as defined in Section 38-9-100 and if the voluntary deposit meets the requirements of Section 38-9-100.

  Section 38-9-120. A depositing insurer may exchange for the deposited securities, or any of them, other securities eligible for deposit under Sections 38-9-80 to 38-9-140 if, in the opinion of the director or his designee, the aggregate value of the deposit will not be reduced below the amount required by law.

  Section 38-9-130. The director or his designee at the time of receiving any bonds or other securities deposited under Sections 38-9-80 to 38-9-140 shall give to the company authority to collect the interest thereon for its own use. This authority continues in force until the company fails to pay any of its liabilities for which the deposit is security. In case of that failure the party charged with payment of the interest must be notified that thereafter the interest is payable to the director or his designee to be applied, if necessary, to the payment of those liabilities.

  Section 38-9-140. When the principal of any securities deposited under Sections 38-9-80 to 38-9-140 is paid to the director or his designee, he shall pay the money so received to the company. However, if the securities were required to be deposited under Section 38-9-80 the payment may not be made until the company deposits an equal amount of other securities of the character required for similar deposits. If the company fails to deliver to the director or his designee within thirty days after receiving notice of this requirement the securities necessary to maintain its required deposit, he may invest the money in other securities of the required character and hold the same as he held those which were paid.

  Section 38-9-150. Upon request of a domestic insurer the director or his designee may return to the insurer the whole or any portion of the securities of the insurer held by him on deposit when he is satisfied that the securities asked to be returned are not subject to any liability and are not required to be held any longer by any provision of law or purpose of the original deposit.
  These deposits made by a foreign insurer must be returned by the director or his designee upon the filing with the director or his designee by the trustee or other authorized representative of the insurer a written request and sworn affidavit stating (a) that the insurer has no contracts of insurance in force and no unsatisfied claims outstanding within this State or (b) that reinsurance of all outstanding contracts and acceptance of all unsatisfied claims within this State have been provided by an insurer or insurers authorized to transact the same kinds of business in this State, filing with the affidavit a certified copy of the reinsurance agreement. Release must be made upon the written order of the director or his designee when he is satisfied that the above requirements have been met. The director or his designee is considered the agent of the foreign insurer for acceptance of service of any legal process in any action or proceeding against the insurer for any claim that might arise before or after the return of its deposits. Any person making a false affidavit as required in this section must, upon conviction, be imprisoned for a period not exceeding five years.

  Section 38-9-160. An insurer which has made a deposit in this State, pursuant to this title, its trustees or resident managers in the United States, the director or his designee, or any creditor of the insurer may, at any time, bring an action in the Circuit Court for the County of Richland against the State and other parties properly joined to enforce, administer, or terminate the trust created by the deposit. The process in the action must be served on the officer of the State having the deposit, who must appear and answer in behalf of the State and perform any orders and judgments the court may make in the action.

  Section 38-9-170. (A) An insurer authorized to transact business in this State, except as to risks or policies for which reserves are required under subsections (B) and (C) and Section 38-9-180 except for real estate title insurance policies, and subject to specific provisions of this title, shall maintain reserves equal to the unearned portions of the gross premiums charged on unexpired or unterminated risks and policies. Credit for reinsurance is allowed a ceding insurer as a deduction from reserves required by this section only as provided in Section 38-9-200 or 38-9-210.
  (B) (1) With reference to insurance against loss or damage to property except as provided in item (5) and with reference to all general casualty insurance and surety insurance every insurer shall maintain an unearned premium reserve on all policies in force.
    (2) The director or his designee may require that these reserves are equal to the unearned portions of the gross premiums in force as computed on each respective risk from the policy's date of issue. If the director or his designee does not so require, the portions of the gross premium in force to be held as premium reserve must be computed according to the following table:

Term for Which Reserved for
Policy was Written Unearned Premium
1 year or less ½
2 years 1st year 3/4
                        2nd year ¼
3 years 1st year 5/6
                      2nd year ½
                      3rd year 1/6
4 years 1st year 7/8
                      2nd year 5/8
                      3rd year 3/8
                      4th year 1/8
5 years 1st year 9/10
                      2nd year 7/10
                      3rd year ½
                      4th year 3/10
                      5th year 1/10
Over 5 years pro rata.

    (3) All of these reserves may be computed, at the option of the insurer, on a yearly or more frequent pro rata basis.
    (4) After adopting a method for computing the reserve, an insurer may not change methods without the director's or his designee's approval.
    (5) With reference to marine insurance, premiums on trip risks not terminated are considered unearned, and the director or his designee may require the insurer to carry a reserve equal to one hundred percent on trip risks written during the month ended as of the date of statement. For all accident and health policies the insurer shall maintain an active life reserve which places a sound value on its liabilities under these policies and which is not less than the reserve according to standards set forth in regulations issued by the director and not less, in the aggregate, than the pro rata gross unearned premium reserves for these policies.

  Section 38-9-180. (A) The director or his designee annually shall value, or cause to be valued, the reserve liabilities, referred to as reserves, for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurer doing business in this State. However, for an alien insurer the valuation is limited to the United States business and may certify the amount of the reserves, specifying the mortality table or tables, rate or rates of interest, and methods, net level premium method or other, used in the calculation of the reserves. In calculating the reserves he may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves required in this section of a foreign or an alien insurer, he may accept any valuation made, or caused to be made, by the insurance supervisory official of a state or another jurisdiction when the valuation complies with the minimum standard provided in this section and if the official of the state or jurisdiction accepts as sufficient and valid for all legal purposes the certificate of valuation of the director or his designee when the certificate states the valuation to have been made in a specified manner according to which the aggregate reserves would be at least as large as if they had been computed in the manner prescribed by the law of that state or jurisdiction.
  (B) (1) Every life insurance company doing business in this State annually shall submit to the director or his designee the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the director by regulation are computed appropriately, are based on assumptions which satisfy contractual provisions, are consistent with prior reported amounts, and comply with applicable laws of this State. The director by regulation shall define the specifics of this opinion and add other items necessary to its scope.
    (2)(a) Every life insurance company, except as exempted by or pursuant to regulation, also annually must include in the opinion required in item (1) an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the director by regulation, when considered in light of the assets held by the company with respect to the reserves and related actuarial items, including, but not limited to, the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the company's obligations under the policies and contracts, including, but not limited to, the benefits under and expenses associated with the policies and contracts.
      (b) The director may provide by regulation for a transition period for establishing higher reserves which the qualified actuary considers necessary in order to render the opinion required by this subsection.
    (3) Each opinion required by item (2) is governed by the following provisions:
      (a) A memorandum, in form and substance acceptable to the department as specified by regulation, must be prepared to support each actuarial opinion.
      (b) If the insurance company fails to provide a supporting memorandum at the request of the director or his designee within a period specified by regulation or the director or his designee determines that the supporting memorandum provided by the insurance company fails to meet the standards prescribed by the regulations or is otherwise unacceptable to the director or his designee, the director or designee may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare supporting memorandum required by the director or designee.
    (4) Every opinion is governed by the following provisions:
      (a) The opinion must be submitted with the annual statement reflecting the valuation of reserve liabilities for each year ending after December 30, 1993.
      (b) The opinion must apply to all business in force including individual and group health insurance plans, in form and substance acceptable to the director or designee as specified by regulation.
      (c) The opinion must be based on standards adopted by the Actuarial Standards Board and on additional standards the director by regulation prescribes.
      (d) For an opinion required to be submitted by a foreign or alien company, the director or designee may accept the opinion filed by that company with the insurance supervisory official of another state if the director or designee determines that the opinion reasonably meets the requirements applicable to a company domiciled in this State.
      (e) For the purposes of this subsection, `qualified actuary' means a member in good standing of the American Academy of Actuaries who meets the requirements set forth in regulations.
      (f) Except in cases of fraud or wilful misconduct, the qualified actuary must not be liable for damages to a person, other than the insurance company and the director or designee, for an act, an error, an omission, a decision, or conduct with respect to the actuary's opinion.
      (g) Disciplinary action by the director or designee against the company or the qualified actuary must be defined in regulations by the director.
      (h) A memorandum in support of the opinion and related material provided by the company to the director or designee must be kept confidential by the director or designee and must not be made public or subject to subpoena, other than for the purpose of defending an action seeking damages from a person by reason of action required by this subsection or by regulations promulgated under it. However, the memorandum or other material may be released by the director or designee with the written consent of the company or to the American Academy of Actuaries upon request stating that the memorandum or other material is required for the purpose of professional disciplinary proceedings and setting forth procedures satisfactory to the director or designee for preserving the confidentiality of the memorandum or other material. Once a portion of the confidential memorandum is cited by the company in its marketing, is cited before a governmental agency other than a state insurance department, or is released by the company to the news media all portions of the confidential memorandum are no longer confidential.
  (C) (1) Except as otherwise provided in item (3) of this subsection and subsection (D), the minimum standard for the valuation of policies and contracts issued before March 24, 1960, is that provided by the laws in effect immediately before that date except the minimum standards for the valuation of annuities and pure endowments purchased under group annuity and pure endowment contracts issued before the effective date is that provided for by the laws in effect immediately before that date but replacing the interest rates as specified in the laws by an interest rate of five percent a year.
    (2) Except as otherwise provided in item (3) of this subsection and subsection (D), the minimum standard for the valuation of policies and contracts issued after March 23, 1960, is the director's or designee's reserve valuation methods defined in subsections (E), (F), and (I), five percent interest for group annuity and pure endowment contracts and three and one-half percent interest for all other policies and contracts, or for policies and contracts other than annuity and pure endowment contracts issued after May 25, 1975, four percent interest for policies issued before January 1, 1979, five and one-half percent interest for single premium life insurance policies, and four and one-half percent interest for all other policies issued after December 31, 1978, and the following tables:
      (a) for all ordinary policies of life insurance issued on the standard basis, excluding disability and accidental death benefits in the policies, the commissioner's 1941 Standard Ordinary Mortality Table for the policies issued before the operative date stated in Section 38-63-650, the commissioner's 1958 Standard Ordinary Mortality Table for the policies issued on or after the operative date of Section 38-63-590 of the Standard Nonforfeiture Law for Life Insurance, and before the operative date of Section 38-63-590 of the Standard Nonforfeiture Law for Life Insurance, if for any category of policies issued on female risks all modified net premiums and present values referred to in this section may be calculated according to an age not more than three years younger than the actual age of the insured; for policies issued before January 1, 1979, and not more than six years younger than the actual age of the insured for policies issued after December 31, 1978, and before the operative date of Section 38-63-600; and for policies issued on or after the operative date of Section 38-63-600 of the Standard Nonforfeiture Law for Life Insurance the commissioner's 1980 Standard Ordinary Mortality Table, at the election of the company for one or more specified plans of life insurance, the commissioner's 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors, or any ordinary mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated by the director for use in determining the minimum standard of valuation for the policies;
      (b) for all industrial life insurance policies issued on the standard basis, excluding disability and accidental death benefits in the policies, the 1941 Standard Industrial Mortality Table for policies issued before the operative date stated in Section 38-63-650; for all policies issued on or after operative date, the 1941 Standard Industrial Mortality Table or the commissioner's 1961 Standard Industrial Mortality Table or any industrial mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated by the director for use in determining the minimum standard of valuation for policies, according to which of these tables is used to calculate adjusted premiums and present values as specified in Section 38-63-580;
      (c) for individual annuity and pure endowment contracts, excluding disability and accidental death benefits in the policies, the 1937 Standard Annuity Mortality Table or, at the option of the company, the Annuity Mortality Table for 1949, Ultimate, or a modification of either of these tables approved by the director or designee;
      (d) for group annuity and pure endowment contracts, excluding disability and accidental death benefits in the policies, the Group Annuity Mortality Table for 1951, a modification of the table approved by the director or designee or, at the option of the insurer, any of the tables or modifications of tables specified for individual annuity and pure endowment contracts;
      (e) for total and permanent disability benefits in or supplementary to ordinary policies or contracts, for policies or contracts issued after December 31, 1965, the tables of Period 2 disablement rates and the 1930 to 1950 termination rates of the 1952 Disability Study of the Society of Actuaries, with due regard to the type of benefit or tables of disablement rates and termination rates, adopted after 1980 by the National Association of Insurance Commissioners, approved by regulation promulgated by the director, for use in determining the minimum standard of valuation for the policies; for policies or contracts issued after December 31, 1960, and before January 1, 1966, either the tables or, at the option of the company, the Class (3) Disability Table (1926) and for policies issued before January 1, 1961, the Class (3) Disability Table (1926) or other table approved by the director or designee. The table, for active lives, must be combined with a mortality table permitted for calculating the reserves for life insurance policies;
      (f) for accidental death benefits in or supplementary to policies, for policies issued after December 31, 1965, the 1959 Accidental Death Benefits Table, or any accidental death benefits table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated by the director for use in determining the minimum standard of valuation for the policies; for policies issued after December 31, 1960, and before January 1, 1966, either the table or, at the option of the company, the Inter-Company Double Indemnity Mortality Table; and for policies issued before January 1, 1961, the Inter-Company Double Indemnity Mortality Table, or other table approved by the director or designee. The table must be combined with a mortality table permitted for calculating the reserves for life insurance policies;
      (g) for extra benefits provided in life or endowment contracts or policies under which there is payable a series of coupons or guaranteed dividends or a series of constant or variable pure endowments maturing either during the term of the contract and the continuation of the life of the insured or maturing as a series after the death of the insured, the table or basis of reserves approved by the director or designee;
      (h) for group life insurance, life insurance issued on the substandard basis and other special benefits, the tables approved by the director or designee;
    (3) Except as provided in subsection (D), the minimum standard for the valuation of all individual annuity and pure endowment contracts issued on or after the operative date of this item, as defined in this section, and for all annuities and pure endowments purchased on or after the operative date under group annuity and pure endowment contracts, is the director's or designee's reserve valuation methods defined in subsections (E) and (F) and the following tables and interest rates:
      (a) for individual annuity and pure endowment contracts issued before January 1, 1979, excluding disability and accidental death benefits in the contracts, the 1971 Individual Annuity Mortality Table, or a modification of this table approved by the director or designee, and six percent interest for single premium immediate annuity contracts, and four percent interest for all other individual annuity and pure endowment contracts;
      (b) for individual single premium immediate annuity contracts issued after December 31, 1978, excluding disability and accidental death benefits in the contracts, the 1971 Individual Annuity Mortality Table or any individual annuity mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated by the director for use in determining the minimum standard of valuation for the contracts, or a modification of these tables approved by the director or designee, and seven and one-half percent interest;
      (c) for individual annuity and pure endowment contracts issued after December 31, 1978, other than single premium immediate annuity contracts, excluding disability and accidental death benefits in the contracts, the 1971 Individual Annuity Mortality Table or any individual annuity mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated by the director for use in determining the minimum standard of valuation for the contracts, or a modification of these tables approved by the director or designee, and five and one-half percent interest for single premium deferred annuity and pure endowment contracts and four and one-half percent interest for all other individual annuity and pure endowment contracts;
      (d) for all annuities and pure endowments purchased before January 1, 1979, under group annuity and pure endowment contracts, excluding disability and accidental death benefits purchased under the contracts, the 1971 Group Annuity Mortality Table, or a modification of this table approved by the director or designee, and six percent interest;
      (e) for all annuities and pure endowments purchased after December 31, 1978, under group annuity and pure endowment contracts, excluding disability and accidental death benefits purchased under the contracts, the 1971 Group Annuity Mortality Table or a group annuity mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated by the director for use in determining the minimum standard of valuation for the annuities and pure endowments, or a modification of these tables approved by the director or designee, and seven and one-half percent interest. After May 26, 1975, an insurer may file with the director or designee a written notice of its election to comply with this item after a specified date before January 1, 1979, which is the operative date of this item for the insurer. However, an insurer may elect a different effective date for individual annuity and pure endowment contracts from that elected for group annuity and pure endowment contracts. If an insurer makes no election, the effective date of this item for the insurer is January 1, 1979.
  (D) (1) The calendar year statutory valuation interest rates as defined in this subsection must be used in determining the minimum standard for the valuation of:
      (a) all life insurance policies issued in a particular calendar year, on or after the operative date of Section 38-63-600 of the Standard Nonforfeiture Law for Life Insurance;
      (b) all individual annuity and pure endowment contracts issued in a particular calendar year after December 31, 1982;
      (c) all annuities and pure endowments purchased in a particular calendar year after December 31, 1982, under group annuity and pure endowment contracts;
      (d) the net increase, if any, in a particular calendar year after January 1, 1983, in amounts held under guaranteed interest contracts.
    (2) The calendar year statutory valuation interest rates, I, must be determined as follows and the results rounded to the nearer one-quarter of one percent:
      (a) for life insurance,
      I= .03 + W (R(1) +21 .03) + 2W(R(2) +21 .09);
      (b) for single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options,
      I=. 03 + W (R - .03),
where R(1) is the lesser of R and .09, R(2) is the greater of R and .09, R is the reference interest rate defined in this subsection, and W is the weighting factor defined in this subsection;
      (c) for other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on an issue year basis, except as stated in subitem (b) of this item, the formula for life insurance stated in subitem (a) of this item applies to annuities and guaranteed interest contracts with guarantee durations in excess of ten years and the formula for single premium immediate annuities stated in subitem (b) applies to annuities and guaranteed interest contracts with guarantee duration of ten years or less;
      (d) for other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the formula for single premium immediate annuities stated in subitem (b) applies;
      (e) for other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, the formula for single premium immediate annuities stated in subitem (b) applies. However, if the calendar year statutory valuation interest rate for life insurance policies issued in a calendar year determined without reference to this sentence differs from the corresponding actual rate for similar policies issued in the immediately preceding calendar year by less than one-half of one percent, the calendar year statutory valuation interest rate for the life insurance policies must be equal to the corresponding actual rate for the immediately preceding calendar year. For purposes of applying the immediately preceding sentence, the calendar year statutory valuation interest rate for life insurance policies issued in a calendar year must be determined for 1980, using the reference interest rate defined for 1979, and must be determined for each subsequent calendar year regardless of when Section 38-63-600 of the Standard Nonforfeiture Law for Life Insurance becomes operative.
    (3) The weighting factors referred to in the formulas stated in this subsection are given in the following tables:

      (a) weighting Factors for Life Insurance:

      Guarantee Duration
    (Years) Weighting Factors
        10 or less .50
      More than 10, but
  not more than 20 .45
      More than 20 .35

For life insurance, the guarantee duration is the maximum number of years the life insurance may remain in force on a basis guaranteed in the policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values or both which are guaranteed in the original policy;
      (b) weighting factor for single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options:

                            Weighting
                              Factors
                                .80

      (c) weighting factors for other annuities and for guaranteed interest contracts, except as stated in subitem (b) of this item are as specified sub-subitem (i), (ii), and (iii) according to the rules and definitions in sub-subitems (iv), (v), and (vi):
        (i) for annuities and guaranteed interest contracts valued on an issue year basis:
        Guarantee Weighting Factor
        Duration for Plan Type
        (Years) A B C
          5 or less: .80 .60 .50
          More than five, but
          not more than 10: .75 .60 .50
      More than 10, but
          not more than 20: .65 .50 .45
          More than 20: .45 .35 .35;

        (ii) For annuities and guaranteed interest contracts valued on a change in fund basis, the factors shown in sub-subitem (i) of this subitem increased by:

Plan Type

                          A B C
                          .15 .25 .05;

        (iii) for annuities and guaranteed interest contracts valued on an issue year basis other than those with no cash settlement options, which do not guarantee interest on considerations received more than one year after issue or purchase and for annuities and guaranteed interest contracts valued on a change in fund basis which do not guarantee interest rates on considerations received more than twelve months beyond the valuation date, the factors shown in sub-subitem (i) of this subitem or derived in sub-subitem (ii) increased by:

                Plan Type
              A B C
              .05 .05 .05;

        (iv) for other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the guarantee duration is the number of years for which the contract guarantees interest rates in excess of the calendar year statutory valuation interest rate for life insurance policies with guarantee duration in excess of twenty years. For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the guarantee duration is the number of years from the date of issue or date of purchase to the date annuity benefits are scheduled to commence.
      (d) Plan type as used in the above tables is defined as:
        (i) Plan Type A:
At any time policyholder may withdraw funds only:
          a. with an adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurer;
          b. without the adjustment but in installments over five years or more;
          c. as an immediate life annuity; or
          d. no withdrawal permitted;
      (ii) Plan Type B:
        Before expiration of the interest rate guarantee, policyholder may withdraw funds only:
          a. with an adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurer;
          b. without the adjustment but in installments over five years or more; or
          c. no withdrawal permitted. At the end of interest rate guarantee, funds may be withdrawn without the adjustment in a single sum or installments over less than five years;
    (iii) Plan Type C:
      Policyholder may withdraw funds before expiration of interest rate guarantee in a single sum or installments over less than five years either:
          a. without adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurer; or
          b. subject only to a fixed surrender charge stipulated in the contract as a percentage of the fund.
    An insurer may elect to value guaranteed interest contracts with cash settlement options and annuities with cash settlement options on either an issue year basis or on a change in fund basis. Guaranteed interest contracts with no cash settlement options and other annuities with no cash settlement options must be valued on an issue year basis. As used in this subsection an issue year basis of valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation standard for the entire duration of the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of issue or year of purchase of the annuity or guaranteed interest contract, and the change in fund basis of valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation standard applicable to each change in the fund held under the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of the change in the fund.
    (4) The Reference Interest Rate referred to in item (2) of this subsection is defined as:
      (a) for all life insurance, the lesser of the average over a period of thirty-six months and the average over a period of twelve months, ending on June thirtieth of the calendar year next preceding the year of issue, of Moody's Corporate Bond Yield Average--Monthly Average Corporates, as published by Moody's Investors Service, Inc.;
      (b) for single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the average over twelve months, ending on June thirtieth of the calendar year of issue or year of purchase, of Moody's Corporate Bond Yield Average--Monthly Average Corporates, as published by Moody's Investors Service, Inc.;
      (c) for other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except as stated in subitem (b) with guarantee duration in excess of ten years, the lesser of the average over thirty-six months and the average over twelve months, ending on June thirtieth of the calendar year of issue or purchase, of Moody's Corporate Bond Yield Average--Monthly Average Corporates, as published by Moody's Investors Service, Inc.;
      (d) for other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except as stated in subitem (b), with guarantee duration of ten years or less, the average over twelve months, ending on June thirtieth of the calendar year of issue or purchase, of Moody's Corporate Bond Yield Average--Monthly Average Corporates, as published by Moody's Investors Service, Inc.;
      (e) for other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the average over twelve months, ending on June thirtieth of the calendar year of issue or purchase, of Moody's Corporate Bond Yield Average--Monthly Average Corporates, as published by Moody's Investors Service, Inc.;
      (f) for other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, except as stated in subitem (b), the average over twelve months, ending on June thirtieth of the calendar year of the change in the fund, of Moody's Corporate Bond Yield Average--Monthly Average Corporates, as published by Moody's Investors Service, Inc.;
    (5) If Moody's Corporate Bond Yield Average--Monthly Average Corporates is no longer published by Moody's Investors Service, Inc., or if the National Association of Insurance Commissioners determines that Moody's Corporate Bond Yield Average--Monthly Average Corporates as published by Moody's Investors Service, Inc., is no longer appropriate for the determination of the reference interest rate, then an alternative method for determination of the reference interest rate, which is adopted by the National Association of Insurance Commissioners and approved by regulation promulgated by the director, may be substituted.
  (E) Except as otherwise provided in subsections (F) and (I), reserves according to the director's or designee's reserve valuation method, for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and requiring the payment of uniform premiums, are the excess, if any, of the present value, at the date of valuation, of future guaranteed benefits provided for by the policies, over the then present value of future modified net premiums. The modified net premiums for the policy are the uniform percentage of the respective contract premiums for the benefits that the present value, at the date of issue of the policy, of the modified net premiums is equal to the sum of the then present value of the benefits provided for by the policy and the excess of item (1) over item (2), as follows:
    (1) A net level annual premium equal to the present value, at the date of issue, of the benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of the policy on which a premium falls due. However, the net level annual premium may not exceed the net level annual premium on the nineteen year premium whole life plan for insurance of the same amount at an age one year higher than the age of issue of the policy.
    (2) A net one year term premium for the benefits provided for in the first policy year. For a life insurance policy issued after December 31, 1985, for which the contract premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for the excess and which provides an endowment benefit or a cash surrender value or a combination of them in an amount greater than the excess premium, the reserve according to the director's or designee's reserve valuation method as of a policy anniversary occurring on or before the assumed ending date defined in this section as the first policy anniversary on which the sum of an endowment benefit and cash surrender value then available is greater than the excess premium, except as otherwise provided in subsection (I), is the greater of the reserve as of the policy anniversary calculated as described in the preceding paragraph and the reserve as of the policy anniversary calculated as described in that paragraph, but with the value defined in item (1) being reduced by fifteen percent of the amount of the excess first year premium, all present values of benefits and premiums being determined without reference to premiums or benefits provided for by the policy after the assumed ending date, the policy being assumed to mature on the date as an endowment, and the cash surrender value provided on the date being considered as an endowment benefit. In making the above comparison the mortality and interest bases stated in subsection (C)(1) and (D) shall be used.
  Reserves according to the director's or designee's reserve valuation method for: life insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums, group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer including a partnership or sole proprietorship or by an employee organization, or both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408 of the Internal Revenue Code, as amended, disability and accidental death benefits in all policies and contracts, and all other benefits, except life insurance and endowment benefits in life insurance policies and benefits provided by all other annuity and pure endowment contracts, must be calculated by a method consistent with the principles of subsection (D), except extra premiums charged because of impairments or special hazards must be disregarded in the determination of modified net premiums.
  (F) This subsection applies to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer including a partnership or sole proprietorship, or by an employee organization, or both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408 of the Internal Revenue Code, as amended. Reserves according to the director's or designee's annuity reserve method for benefits under annuity or pure endowment contracts, excluding disability and accidental death benefits in the contracts, is the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by the contracts at the end of each respective contract year, over the present value, at the date of valuation, of future valuation considerations derived from future gross considerations, required by the terms of the contract, that become payable before the end of the respective contract year. The future guaranteed benefits must be determined by using the mortality table, if any, and the interest rate, or rates, specified in the contracts for determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of the contracts to determine nonforfeiture values.
  (G) (1) An insurer's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued after March 23, 1960, must not be less than the aggregate reserves calculated in accordance with the methods set forth in subsections (E), (F), (I), and (J) and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for the policies.
    (2) The aggregate reserves for all policies, contracts, and benefits must not be less than the aggregate reserves determined by the qualified actuary to be necessary to render the opinion required by subsection (B).
  (H) Reserves for all policies and contracts issued before March 24, 1960, may be calculated, at the option of the insurer, according to the standards which produce greater aggregate reserves for all the policies and contracts than the minimum reserves required by the laws in effect immediately before the date. Reserves for a category of policies, contracts, or benefits established by the director or designee, after March 23, 1960, may be calculated, at the option of the insurer, according to the standards which produce greater aggregate reserves for the category than those calculated according to the minimum standard provided in this section, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, must not be higher than the corresponding rate or rates of interest used in calculating nonforfeiture benefits. An insurer which adopts a standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard provided in this section, with the approval of the director or designee, may adopt a lower standard of valuation, but not lower than the minimum provided in this section. However, for purposes of this subsection, the holding of additional reserves previously determined by a qualified actuary to be necessary to render the opinion required by subsection (B) must not be deemed to be the adoption of a higher standard of valuation.
  (I) If in a contract year the gross premium charged by a life insurer on a policy or contract is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for the policy or contract is the greater of either the reserve calculated according to the mortality table, rate of interest, and method actually used for the policy or contract, or the reserve calculated by the method actually used for the policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium. The minimum valuation standards of mortality and rate of interest referred to in this subsection are those standards stated in subsections (C)(1) and (D). For a life insurance policy issued after December 31, 1985, for which the gross premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for the excess and which provides an endowment benefit or a cash surrender value or a combination of them in an amount greater than the excess premium, this subsection must be applied as if the method actually used in calculating the reserve for the policy were the method described in subsection (E), ignoring the second paragraph of subsection (E). The minimum reserve at each policy anniversary of the policy is the greater of the minimum reserve calculated in accordance with subsection (E), including the second paragraph of that subsection, and the minimum reserve calculated in accordance with this subsection.
  (J) For a plan of life insurance which provides for future premium determination, the amounts of which are to be determined by the insurer based on then estimates of future experience, or for a plan of life insurance or annuity which is of a nature so that the minimum reserves cannot be determined by the methods described in subsections (E), (F), and (I), the reserves which are held under the plan must be:
    (1) appropriate in relation to the benefits and the pattern of premiums for that plan;
    (2) computed by a method which is consistent with the principles of this Standard Valuation Law, as determined by regulations promulgated by the director.
  (K) This section is known as the `Standard Valuation Law'.

  Section 38-9-190. A company authorized to transact insurance in this State shall maintain reserves in an amount estimated in the aggregate as being sufficient to provide for the payment of all losses or claims arising by the date of an annual or other statement, whether reported or unreported, which are unpaid as of that date and for which the insurer may be liable and also reserves in an amount estimated to provide for the expenses of adjustment or settlement of these claims. The reserves for unpaid losses and loss expenses under policies of personal injury liability insurance, employer's liability insurance, and workers' compensation insurance must be calculated in accordance with regulations the department prescribes. A company authorized to write these kinds of insurance shall file with its annual statement schedules of its experience in the form the director or designee requires. Credit for reinsurance is allowed a ceding insurer as an asset or a deduction from reserves required by this section only as provided in Section 38-9-200 or 38-9-210.

  Section 38-9-200. (A) Credit for reinsurance must be allowed a domestic ceding insurer as an asset or a deduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of subsection (B), (C), (D), (E), or (F). If meeting the requirements of subsection (D) or (E), the requirements of subsection (G) must be met also.
  (B) Credit must be allowed when the reinsurance is ceded to an assuming insurer which is licensed to transact insurance or reinsurance in this State or approved as a reinsurer by the director or designee provided by Section 38-5-60.
  (C) Credit must be allowed when the reinsurance is ceded to an assuming insurer which is accredited as a reinsurer in this State. An accredited reinsurer is one which:
    (1) files with the director or designee evidence of its submission to this state's jurisdiction;
    (2) submits to this state's authority to examine its books and records;
    (3) is licensed to transact insurance or reinsurance in at least one state, or for a United States branch of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance, in at least one state;
    (4) pays an initial submission fee of four hundred dollars and annually pays a four hundred dollar fee by March first;
    (5) files annually with the director or designee a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement and:
      (a) maintains a surplus as regards policyholders of not less than twenty million dollars and whose accreditation has not been denied by the director or designee within ninety days of its submission; or
      (b) maintains a surplus as regards policyholders of less than twenty million dollars and whose accreditation has been approved by the director or designee. No credit is allowed a domestic ceding insurer if the assuming insurer's accreditation has been revoked by the director or designee after notice and hearing.
  (D) Credit must be allowed when the reinsurance is ceded to an assuming insurer which is domiciled and licensed in, or for a United States branch of an alien assuming insurer is entered through, a state which employs standards regarding credit for reinsurance substantially similar to those applicable under this statute, and the assuming insurer or United States branch of an alien assuming insurer:
    (1) maintains a surplus as regards policyholders of not less than twenty million dollars;
    (2) submits to the authority of this State to examine its books and records. However, the requirement of item (1) does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system.
  (E) (1) Credit must be allowed when the reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified United States financial institution, defined in Section 38-9-220(B), for the payment of the valid claims of its United States policyholders and ceding insurers and their assigns and successors in interest. The assuming insurer shall report annually to the director or designee information substantially the same as that required to be reported on the National Association of Insurance Commissioners annual statement form by licensed insurers to enable the director or designee to determine the sufficiency of the trust fund. For a single assuming insurer, the trust must consist of a trusteed account representing the assuming insurer's liabilities attributable to business written in the United States and, in addition, the assuming insurer shall maintain a trusteed surplus of not less than twenty million dollars. For a group of individual unincorporated underwriters, the trust must consist of a trusteed account representing the group's liabilities attributable to business written in the United States and, in addition, the group shall maintain a trusteed surplus of which one hundred million dollars must be held jointly for the benefit of United States ceding insurers of a member of the group. The group shall make available to the director or designee an annual certification of the solvency of each underwriter by the group's domiciliary regulator and its independent public accountants.
    (2) For a group of incorporated insurers under common administration which complies with the filing requirements contained in item (1), has transacted continuously an insurance business outside the United States for at least three years immediately before making application for accreditation, submits to this state's authority to examine its books and records and bears the expense of the examination, and has aggregate policyholders' surplus of ten billion dollars, the trust must be in an amount equal to the group's several liabilities attributable to business ceded by United States ceding insurers to a member of the group pursuant to reinsurance contracts issued in the name of the group. The group also shall maintain a joint trusteed surplus of which one hundred million dollars must be held jointly for the benefit of United States ceding insurers of a member of the group as additional security for liabilities. Each member of the group shall make available to the director or designee an annual certification of the member's solvency by the member's domiciliary regulator and its independent public accountant.
    (3) The trust must be established in a form approved by the director or designee. The trust instrument must provide that contested claims must be valid and enforceable upon the final order of a court of competent jurisdiction in the United States. The trust must vest legal title to its assets in the trustees of the trust for its United States policyholders and ceding insurers and their assigns and successors in interest. The trust and the assuming insurer are subject to examination determined by the director or designee. The trust must remain in effect for as long as the assuming insurer has outstanding obligations due under the reinsurance agreements subject to the trust.
    (4) No later than February twenty-eighth each year the trustees of the trust shall report to the director or designee in writing setting forth the balance of the trust and listing the trust's investments at the preceding year end and shall certify the date of termination of the trust, if so planned, or certify that the trust may not expire before the next following December thirty-first.
  (F) Credit must be allowed when the reinsurance is ceded to an assuming insurer not meeting the requirements of subsection (B), (C), (D), or (E) but only with respect to the insurance of risks located in jurisdictions where the reinsurance is required by applicable law or regulation of that jurisdiction.
  (G) If the assuming insurer is not licensed or accredited to transact insurance or reinsurance in this State, the credit permitted by subsections (D) and (E) must not be allowed unless the assuming insurer agrees in the reinsurance agreements:
    (1) that when the assuming insurer fails to perform its obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of a court of competent jurisdiction in a state of the United States, comply with all requirements necessary to give the court jurisdiction, and abide by the final decision of the court or of an appellate court in an appeal;
    (2) to designate the director or designee or a designated attorney as its true and lawful attorney upon whom may be served lawful process in an action, a suit, or a proceeding instituted by or on behalf of the ceding company. This subsection does not conflict with or override the obligation of the parties to a reinsurance agreement to arbitrate their disputes if an obligation is created in the agreement.
  (H) The director may promulgate regulations to implement the provisions of this section and Section 38-9-210.
  Section 38-9-210. A reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Section 38-9-200 must be allowed in an amount not exceeding the liabilities carried by the ceding insurer. The reduction must be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations, if the security is held in the United States subject to withdrawal solely by and under the exclusive control of the ceding insurer or, for a trust, held in a qualified United States financial institution, defined in Section 38-9-220(B). This security may be in the form of:
  (1) cash;
  (2) securities listed by the Securities Valuation Office of the National Association of Insurance Commissioners and qualifying as admitted assets under Section 38-11-100;
  (3) clean, irrevocable, unconditional letters of credit issued or confirmed by a qualified United States financial institution defined in Section 38-9-220(A) no later than December thirty-first of the year for which filing is being made and in the possession of the ceding company on or before the filing date of its annual statement. Letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance or confirmation, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification, or amendment, whichever first occurs;
  (4) other form of security acceptable to the director or designee.

  Section 38-9-220. (A) For purposes of Section 38-9-210, a `qualified United States financial institution' means an institution that:
    (1) is organized or, for a United States office of a foreign banking organization, licensed under the laws of the United States or its state;
    (2) is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies;
    (3) has been determined by the director or designee or the Securities Valuation Office of the National Association of Insurance Commissioners to meet standards of financial condition and standing necessary and appropriate to regulate the quality of financial institutions whose letters of credit are acceptable to the director or designee.
  (B) For purposes of those provisions of this law specifying those institutions that are eligible to act as a fiduciary of a trust, a `qualified United States financial institution' means an institution that is:
    (1) organized or, for a United States branch or agency office of a foreign banking organization, licensed under the laws of the United States or its state and has been granted authority to operate with fiduciary powers;
    (2) regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies."

Name changed, etc.

SECTION 536. Chapter 11, Title 38 of the 1976 Code is amended to read:

"CHAPTER 11

Investments

  Section 38-11-10. The legislative intent is that policyholder obligations and the minimum capital or guaranty fund and surplus required by law must be covered only by assets of unquestioned integrity and stability and that assets in excess of those required to cover policyholder obligations, minimum capital or guaranty funds, and surplus may be invested by insurers at the discretion of the insurers. However, the assets must not be invested in assets prohibited under Section 38-11-90. The purpose of this section is to protect and further the interests of policyholders, claimants, creditors, and the public by providing standards for the development and administration of programs for the investment of the assets of companies organized under this chapter. These standards and the investment programs developed by companies must take into account the safety of the company's principal, investment yield, and growth, stability in the value of the investment, and liquidity necessary to meet the company's expected business needs, and investment diversification.

  Section 38-11-20. This chapter applies to all domestic insurers. Foreign insurers and United States branches of alien insurers transacting an insurance business in this State shall maintain investments of the same general type and character as specified for domestic insurers, except that investments of substantially the same quality as those specified herein, authorized by the law of the insurer's state of domicile, or state of entry if an alien insurer, may be recognized as eligible investments for purposes of this chapter by the director or his designee in the sound exercise of his discretion.

  Section 38-11-30. As used in this chapter, unless the context requires otherwise, `policyholder obligations' means those liabilities of the insurer to, or for, its policyholders arising out of its policies and to its creditors and includes the liabilities required to be included in the insurer's annual statement, including, but not limited to (a) the unearned premium reserve, (b) reserves required by applicable mortality or morbidity tables, and (c) claim or loss reserves including incurred but not reported claims. `Policyholder obligations' does not include that portion of the insurer's capital or guaranty fund, nor that portion of its surplus, in excess of the minimum capital, or guaranty fund, and surplus required by law for such insurer, nor the Mandatory Securities Valuation Reserve.

  Section 38-11-40. Every insurer shall have and maintain investments, of the classes described in this section, to the extent of policyholder obligations and minimum capital, or guaranty fund, and surplus less, with respect to insurers other than life insurers, an amount equal to thirty percent of its surplus as regards policyholders. In no event may insurers, other than life insurers, have and maintain investments of the character described below less than an amount equal to seventy percent of policyholder obligations and one hundred percent of the minimum required capital, or guaranty fund, and surplus:
  (a) Cash, cash funds, and interest accrued thereon on deposit or in savings accounts, under certificates of deposit, or in any other form, in solvent banks and trust companies which have qualified for the insurance protection afforded by the Federal Deposit Insurance Corporation, but the cash or cash funds are not limited to, or by, the amount of insurance protection.
  (b) Premiums in the course of collection, including due and deferred premiums of life insurers, other than from agencies or general agencies effectively owned or controlled by, or owning or controlling, the insurer, not more than three months past due, less commissions payable, and installment premiums to the extent of the unearned premium reserve carried on the policies to which the premiums apply, less commissions payable thereon. However, premium balances not more than ninety days past due from agencies or general agencies effectively owned or controlled by, or owning or controlling, the insurer are considered admitted assets of the insurer to the extent that balances due from the agency or general agency are represented by assets of the kinds described in this section as limited by Section 38-11-50.
  (c) Reinsurance recoverables, not more than three months past due from solvent, authorized reinsurers, including deposits made with assuming reinsurers, or held by ceding insurers, under reinsurance agreements, but only to the extent that the deposits are available as offsets against liabilities assumed under the reinsurance agreements.
  (d) Bonds, notes, warrants, and other securities which are the direct obligations of the United States or for which the faith and credit of the United States are pledged for the payment of principal and interest.
  (e) Obligations or stock, where stated, of the following agencies or instrumentalities of the United States, whether or not such obligations are guaranteed by the government:
    (1) Commodity Credit Corporation.
    (2) Federal intermediate credit banks.
    (3) Federal land banks.
    (4) Central Bank for Cooperatives.
    (5) Federal home loan banks and their stock.
    (6) Federal National Mortgage Association and its stock when acquired in connection with sale of mortgage loans to the Federal National Mortgage Association.
    (7) Government National Mortgage Association.
    (8) Other agencies or instrumentalities of the United States approved by the director or his designee.
  (f) Bonds, notes, warrants, and other securities which are the direct obligations of any state or territory of the United States or of the District of Columbia, or for which the full faith and credit of the state, territory, or District of Columbia have been pledged for the payment of principal and interest.
  (g) Bonds, notes, warrants, and other securities which are valid and legally authorized obligations, issued, assumed, or guaranteed by any county, city, town, village, municipality, or district of any state or territory of the United States, or by any political subdivision thereof, or by any civil division or public instrumentality of the United States, any state or territory of the United States, or any county, city, town, or district of any state or territory, if, by statutory or other legal requirements applicable thereto, such obligations are payable, both as to principal and interest, from taxes levied, or required by such law to be levied, upon all taxable property or taxable income within the jurisdiction of the governmental unit, or from special revenues pledged or otherwise appropriated or by law required to be appropriated for the purpose of the payment, but not including any obligations payable solely out of special assessments on properties benefitted by local improvements. However, obligations payable out of special revenues pledged or otherwise appropriated or required by law to be appropriated for the purpose of the payment, are eligible for purposes of this section only if the obligations are eligible for amortization in accordance with regulations promulgated by the director after notice and hearing.
  (h) Bonds, notes, warrants, or other securities of Canada, or of any of its provinces, or of any municipality in Canada, if the municipal obligations are required or permitted to be amortized in the annual statement prescribed by law, or any bonds fully guaranteed by Canada, or any of its provinces or municipalities, if the bonds are payable in lawful money of the United States or Canada.
  (i) Bonds, notes, or debentures of solvent corporations existing under the laws of the United States or any of its states or territories, the District of Columbia, Canada, or any of its provinces, if the obligations are qualified under any of the following:
    (1) Obligations which are secured by adequate collateral security and bear fixed interest if, during each of the last two, and one additional year, of the five fiscal years next preceding the date of acquisition by the insurer, the net earnings of the issuing, assuming, or guaranteeing corporation available for its fixed charges have not been less than one and one-fourth times the total of its fixed charges for that year. In determining the adequacy of collateral security not more than one-third of the total value of the required collateral may consist of stock other than preferred or guaranteed stocks. The director or his designee may approve the collateral as adequate notwithstanding that more than one third of the total value of the required collateral consists of stocks other than preferred or guaranteed stocks if he finds the collateral to be adequate otherwise and states, in writing, his reasons for so finding.
    (2) Fixed interest-bearing obligations other than those described in (1) above, if the net earnings of the issuing, assuming, or guaranteeing corporation available for its fixed charges for a period of five fiscal years next preceding the date of acquisition by the insurer have averaged per year not less than one and one-half times its annual fixed charges applicable to that period and during the last two years of the period the net earnings have been not less than one and one-half times its fixed charges for those years. Notwithstanding the failure of an issuing corporation to meet the test with respect to its fixed interest-bearing obligations as provided in this item, the obligations must be considered to be eligible hereunder if they are secured or guaranteed by leases or other contracts as long as the guaranteeing, leasing, or contracting corporation fulfills the requirements of this section with respect to its fixed interest obligations.
    (3) Adjustment income or other contingent interest obligations if the net earnings of the issuing, assuming, or guaranteeing corporation available for its fixed charges for a period of five fiscal years next preceding the date of acquisition by the insurer have averaged per year not less than one and one-half times the sum of its average annual fixed charges and its average annual maximum contingent interest applicable to that period and if during each of the last two years of the period the net earnings have been not less than one and one-half times the sum of its fixed charges and maximum contingent interest for those years. As used herein, `net earnings available for fixed charges' means net income after deducting operating and maintenance expenses, taxes other than federal and state income taxes, depreciation, and depletion, but excluding extraordinary nonrecurring items of income or expenses appearing in the regular financial statement of the corporation. `Fixed charges' includes interest on funded and unfunded debt and amortization of debt discount.
  (j) Preferred or guaranteed stocks or shares, other than common stocks, of solvent institutions existing under the laws of the United States or of any of its states, districts, or territories, if all of the prior obligations and prior preferred stocks, if any, of the institution at the date of acquisition by the insurer are eligible as investments under this chapter and if qualified under either of:
    (1) Preferred stocks or shares are considered qualified if both of these requirements are met:
      (i) The net earnings of the institution available for its fixed charges for a period of five fiscal years next preceding the date of acquisition by the insurer shall have averaged per year not less than one and one-half times the sum of its average annual fixed charges, if any, its average annual maximum contingent interest, if any, and its average annual preferred dividend requirements applicable to the period; and
      (ii) During each of the last two years of the period the net earnings must have been not less than one and one-half times the sum of its fixed charges, contingent interest, and preferred dividend requirements. `Preferred dividend requirements' means cumulative or noncumulative dividends whether paid or not.
    (2) Guaranteed stocks or shares are considered qualified if the assuming or guaranteeing institution meets the requirements of Section 38-11-40(i)(2) construed to include as a fixed charge the amount of guaranteed dividends of the issue or the rental covering the guarantee of the dividends.
  (k) If a life insurer, loans to policyholders upon pledge of the policy as collateral security, amounts not exceeding the cash surrender values of the policies, or loans against pledge or assignment of any of its supplementary contracts or other contracts or obligations, as long as the loan is adequately secured by pledges or assignments.
  (l) If a life insurer, bonds, or evidences of debts secured by first mortgages or deeds of trust on improved unencumbered real property or the equity of the seller of any of this property in the contract for a deed covering the entire balance due on a bona fide sale of property located in the United States or any of its states or territories or the District of Columbia; but no mortgage loan or investment in the equity of the seller in the contract for deed may exceed at the time of acquisition seventy-five percent of the fair market value of the property. Real estate is not considered to be encumbered within the meaning of this chapter by reason of the existence of taxes or assessments which are not delinquent, instruments creating or reserving mineral, oil, or timber rights, rights-of-way, joint driveways, sewer rights, rights in walls, nor by reason of building restrictions or other restrictive covenants, nor when the real estate is subject to lease in whole or in part whereby rents or profits are reserved to the owner if in any event the security for the loan or investment is a first lien upon the real estate. The value of any mineral, oil, timber, or similar right reserved may not be included in the fair market value of the property.
  (m) If a life insurer, evidences of debt secured by first mortgages or deeds of trust upon leasehold estates running for a term not less than ten years beyond the maturity of the loan as made or as extended, in improved real property, otherwise unencumbered, if the mortgagee is entitled to be subrogated to all rights under the leasehold. No investment under this item may exceed seventy-five percent of the fair market value of the leasehold estate.
  (n) If a life insurer, bonds or notes secured by mortgage or trust deed guaranteed or insured as to principal in whole or in part by the Administrator of Veterans' Affairs pursuant to the provisions of Title III of an Act of Congress of the United States of June 22, 1944, entitled the `Service Men's Readjustment Act of 1944', as amended, or bonds or notes secured by mortgage or trust deed guaranteed or insured by the Federal Housing Administration under the terms of an Act of Congress of the United States of June 27, 1936, entitled the `National Housing Act', as amended.
  (o) Land and buildings to the extent used and occupied for home office purposes together with other real estate as is required for the insurer's convenient transaction of its business at net value plus improvements less normal depreciation.
  (p) If a life insurer, improved unencumbered real estate for the production of income or property now under lease or being constructed under a definite agreement providing for lease to solvent institutions, individuals, or governmental agencies for governmental, professional, commercial, residential, or industrial purposes other than agricultural, horticultural, ranch, mining, mineral, or oil purposes at net value plus improvements less normal depreciation; however, upon approval by the director or his designee, the real estate investment may be encumbered or need not be under lease.
  (q) Loans secured by pledge of collateral determined by the director or his designee to be adequate and appropriate for investment of policyholder obligation funds of the insurer.
  (r) Common stocks of any solvent corporation incorporated under the laws of the United States or any state, or Canada, or any of its provinces, if the stocks of the corporation are listed or admitted to trading on a securities exchange located in the United States, which exchange is approved or recognized by the Securities and Exchange Commission of the United States or if the stocks are listed in the Manual on Valuation of Securities issued by the Committee on Valuation of Securities of the National Association of Insurance Commissioners.
  (s) Any investment not specifically included herein nor prohibited under Section 38-11-90, if and to the extent as, the director or his designee finds the investment appropriate for investment of policyholder obligations funds. This finding is to be based upon the standards prescribed by Section 38-11-10.

  Section 38-11-50. (A) Investments made by insurers to cover policyholder obligations and their minimum capital or guaranty fund and surplus required by law, provided in Section 38-11-40, are subject to:
    (1) None of the securities in Section 38-11-40 are eligible for the purposes of that section if, within five years immediately preceding, the obligor has defaulted in the payment of principal or interest on its bonds, warrants, or other securities.
    (2) With respect to investments under Section 38-11-40(g), not more than twenty percent of the insurer's policyholder obligations may be invested in the securities of a county, city, town, village, municipality, or district of a state or territory of the United States or its political subdivisions or a civil division or public instrumentality of the United States. However, this limitation does not apply to an investment which qualifies for sinking fund purposes under the laws of this State.
    (3) Investments in Section 38-11-40(h) may not exceed ten percent of the insurer's policyholder obligations.
    (4) Investments in Section 38-11-40(i) may not exceed sixty-six and two-thirds percent of the insurer's policyholder obligations, nor may more than ten percent of the insurer's policyholder obligations be invested in one investment.
    (5) Investments in Section 38-11-40(j) may not exceed fifteen percent of the insurer's policyholder obligations.
    (6) Investments in Section 38-11-40(l), (m), and (n) may not exceed in the aggregate sixty-six and two-thirds percent of the insurer's policyholder obligations, nor, with respect to investments under these items, may more than ten percent of the insurer's policyholder obligations be invested in one investment or in one project, subdivision, or transaction or series of related transactions.
    (7) Investments in Section 38-11-40(o) may not exceed ten percent of the insurer's policyholder obligations.
    (8) Investments in Section 38-11-40(p) may not exceed ten percent of the insurer's policyholder obligations. Where a life insurer does not, wholly or in part, avail itself of Section 38-11-40(o), as limited by Section 38-11-40(f), the investments under Section 38-11-40(p) may be increased to the extent of the unused portion, but the life insurer's investments under Section 38-11-40(p) may not exceed fifteen percent of the insurer's policyholder obligations. However, this limitation does not apply to real estate acquired by bona fide mortgage foreclosure if the insurer has had title to the real estate for less than five years.
    (9) Investments in Section 38-11-40(q) may not exceed ten percent of the insurer's policyholder obligations.
    (10) Investments in Section 38-11-40(r) may not exceed ten percent of the insurer's policyholder obligations.
    (11) Investments authorized under Section 38-11-40(s) may not exceed ten percent of the insurer's policyholder obligations.
  (B) For purposes of the limitations contained in this section:
    (1) Except as otherwise provided in item (2), investments in Section 38-11-40 must be valued in accordance with stated values or standards published by the Securities Valuation Office of the National Association of Insurance Commissioners in its Valuations of Securities Manual. Investments for which the National Association of Insurance Commissioners has not published valuations or standards must be valued as follows:
      (a) Obligations having a fixed term and rate, if not in default as to principal or interest, must be valued, if purchased at par, at the par value and, if purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made.
      (b) Common, preferred, or guaranteed stocks must be valued at their market value or, at the option of the company, may be valued at the purchase price if it is less than market value.
      (c) Other securities investments must be valued in accordance with regulations promulgated pursuant to subsection (D).
    (2) Investments not provided for in item (1), including real property, must be valued in accordance with regulations promulgated pursuant to subsection (D), but they must not be valued at more than their purchase price. Purchase price for real property includes capitalized permanent improvements less depreciation spread evenly over the life of the property or, at the option of the company, less depreciation computed on a basis permitted under the Internal Revenue Code and its regulations. Investments affected by permanent declines in value must be valued at not more than their market value. However, mortgage loans may be valued at amortized value.
  (C) An investment, including real property, not purchased by a company but acquired in satisfaction of a debt or otherwise must be valued in accordance with the applicable procedures for that type of investment contained in this section. For purposes of applying the valuation procedures, the purchase price is the market value at the time the investment is acquired or, for an investment acquired in satisfaction of debt, the amount of the debt including interest, taxes, and expenses, whichever is less.
  (D) The director shall promulgate regulations for determining and calculating values to be used in financial statements submitted to the department of Insurance for investments not subject to published National Association of Insurance Commissioner's valuation standards.

  Section 38-11-60. An insurer owning not less than eighty percent of all classes of the outstanding stock of one or more other insurers transacting an insurance business may, for the purposes of complying with Section 38-11-40, so comply on the basis of a consolidated statement. However, every subsidiary must fully comply with the requirements of Section 38-11-40.

  Section 38-11-70. An insurer not in compliance with the requirements imposed by this chapter shall within thirty days notify the department. Upon being notified, or upon otherwise ascertaining noncompliance, the director or his designee shall order the insurer to make good the deficiency within thirty days, and he shall, upon failure of the insurer to do so, revoke or suspend the license of the insurer until the deficiency has been made good. However, if noncompliance results from the acquisition of the property or security through foreclosure or otherwise results from a default in a loan or other obligation and the acquisition has been rendered necessary in order to protect the investment or avoid greater loss, the director or his designee may further extend the period not to exceed one hundred eighty days if the insurer establishes that the extension is necessary, that it will not prejudice the policyholders and that the insurer has, in good faith, entered upon a course of action calculated to terminate the noncompliance on or before the expiration of the extended period.
  Further, investments in real estate and mortgage loans on real estate already made and recognized as admitted assets as of December 31, 1970, are not affected by the restrictions and limitations of this chapter, and are considered as assets covering policyholder obligations and minimum capital, or guaranty fund, and surplus required by law.

  Section 38-11-80. No insurer may make any loan or investment, except the policy loans of a life insurer, or any sale or exchange unless authorized, approved, or ratified by its board of directors or other governing body or by a committee charged by the board of directors, other governing body, or the bylaws with the duty of making the investment, loan, sale, or exchange. The minutes of the committee must be submitted to the board of directors or other governing body at the next meeting of the board of directors or other governing body.

  Section 38-11-90. No insurer may invest any of its funds in or lend any of its funds upon the security of:
  (a) Issued shares of its own capital stock except with the written permission of the director or his designee which may be granted, at his discretion, where the purpose of the acquisition is in connection with a lawful plan for mutualization of the insurer, or in furtherance of a retirement, pension, or incentive program for officers or employees of the insurer, which plan has been approved by the stockholders, or if otherwise the acquisition is shown to be for the benefit of all stockholders; but in no event may shares so acquired be admissible as an asset or shown as an asset in any financial statement of the insurer.
  (b) Securities issued by a corporation which is insolvent at the time of the proposed investment except upon the written approval of the director or his designee.
  (c) Securities which will subject the insurer to any assessment other than for taxes or wages.
  (d) Any investment or security which is found by the director or his designee to be designed to evade any prohibition of this chapter.

  Section 38-11-100. The assets enumerated in Section 38-11-40 and other assets not prohibited under Section 38-11-90 nor required to be scheduled as nonadmitted assets in the annual statement, as prescribed by the director or his designee, are considered admitted assets and all these assets must be valued in accordance with the standards prescribed in item (l) of Section 38-11-50.

  Section 38-11-110. All investments of insurers authorized to do business in this State, for which no rule or method of valuation has been otherwise provided, must be valued in the discretion of the director or his designee at their fair market value, appraised value, or at amounts determined by the director or his designee as their fair market value. If any valuation of an investment by an insurer appears to be an unreasonable estimate of its true value, the director or his designee has the authority to cause the investment to be appraised, and the appraised value must be substituted as the true value. The appraisal must be made by two disinterested and competent persons, one to be appointed by the director and one to be appointed by the insurer. In the event these two persons fail to agree, they shall appoint a third disinterested and competent person, and the estimate of the value of the investment, as arrived at by these three persons, must be substituted as the true value."

Name changed, etc.

SECTION 537. Chapter 13, Title 38 of the 1976 Code is amended to read:

"CHAPTER 13

Examinations, Investigations, Records, and Reports

  Section 38-13-10. (A) The director or his examiners may conduct an examination under this chapter of an insurer as often as the director or his designee consider appropriate but, at a minimum, shall conduct an examination of every insurer licensed in this State not less frequently than once every five years. When the director or his designee considers it prudent for the protection of policyholders in this State, he may examine or have examined an insurer applying for admission in this State. In scheduling and determining the nature, scope, and frequency of the examinations, the director or his designee shall consider compliance with relevant South Carolina laws and regulations, the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, and other criteria set forth in the Examiners' Handbook adopted by the National Association of Insurance Commissioners and in effect when the director or his designee exercises his authority under this subsection.
  (B) For purposes of completing an examination of an insurer under this chapter, the director or his designee may examine or investigate a person or his business in a manner considered necessary or material by the director or his designee.
  (C) In lieu of an examination under this section of a foreign or an alien insurer licensed in this State, the director or his designee may accept an examination report on the insurer prepared by the insurance department for the insurer's state of domicile or port-of-entry state until January 1, 1994. After that time, the reports may be accepted only if one or both of the following apply:
    (1) The insurance department at the time of the examination was accredited under the National Association of Insurance Commissioners' Financial Regulation Standards and Accreditation Program;
    (2) The examination is performed with the participation of one or more examiners who are employed by the accredited insurance department, and who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by their department.

  Section 38-13-20. (A) Upon determining that an examination must be conducted, the director or his designee shall issue an examination warrant appointing one or more examiners to perform the examination and instructing them as to the scope of the examination. In conducting the examination, the examiner shall observe South Carolina laws and regulations and those guidelines and procedures set forth in the Examiners' Handbook adopted by the National Association of Insurance Commissioners. The director also may employ other guidelines or procedures he considers appropriate.
  (B) Every person or insurer and his or its officers, directors, and agents from whom information is sought shall provide to the examiners appointed under subsection (A) timely, convenient, and free access at all reasonable hours at his or its offices to all books, records, accounts, papers, documents, and all computer or other recordings relating to the property, assets, business, and affairs of the person or insurer being examined. If the director or his designee considers it necessary to the conduct of the examination, he may require that the person or insurer or his or its agents or affiliated or subsidiary corporations or partnerships furnish the original books and records. The officers, directors, employees, and agents of the insurer or person shall facilitate the examination and aid in the examination so far as it is in their power to do so. The refusal of a person or an insurer by his or its officers, directors, employees, or agents to submit to examination or to comply with a reasonable written request of the examiners is grounds for suspension or revocation of the person's or insurer's certificate of authority to engage in the business of insurance in this State. The director or his designee may make the suspension or revocation and the reasons for it public. Proceedings for revocation must be conducted pursuant to Section 38-5-140.
  (C) The director or his examiners may issue subpoenas, administer oaths, and examine under oath a person as to matters pertinent to the examination. Upon the failure or refusal of a person to obey a subpoena, the director or his designee may petition a court of competent jurisdiction, and upon proper showing the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the court order is punishable as contempt of court.
  (D) When making an examination under Section 38-13-10, the director or his designee may retain attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists as examiners. The cost of the retainment must be borne by the insurer which is the subject of the examination.
  (E) Nothing contained in Section 38-13-10 limits the authority of the director or his designee to:
    (1) terminate or suspend an examination to pursue other legal or regulatory action pursuant to the insurance laws of this State. Findings of fact and conclusions made pursuant to an examination are prima facie evidence in a legal or regulatory action;
    (2) use and, if appropriate, make public a final or preliminary examination report, examiner or insurer work papers or other documents, or other information discovered or developed during the course of an examination in the furtherance of a legal or regulatory action which the director or his designee, in his sole discretion, considers appropriate.

  Section 38-13-30. (A) Examination reports must be comprised of only facts appearing upon the books, records, or other documents of the insurer, its agents, or other persons examined or as ascertained from the testimony of its officers or agents or other persons examined concerning its affairs and the conclusions and recommendations the examiners find reasonably warranted from the facts.
  (B) No later than sixty days following completion of the examination, the examiner in charge shall file with the department a verified written report of examination under oath. Upon receipt of the verified report, the department shall transmit the report to the insurer examined with a notice which affords the insurer a reasonable opportunity of not more than thirty days to make a written submission or rebuttal with respect to matters contained in the examination report.
  (C) After the expiration of the thirty-day period allowed for the receipt of written submissions or rebuttals, the director or his designee shall consider and review the report fully with written submissions or rebuttals and relevant portions of the examiner's work papers and enter an order:
    (1) adopting the examination report as filed or with modification or corrections. If the examination report reveals that the insurer is operating in violation of law, regulation, or prior order of the director or his designee, he may order the insurer to take action the director or his designee considers necessary and appropriate to cure the violation;
    (2) rejecting the examination report with directions to the examiners to reopen the examination to obtain additional data, documentation, or information and refiling pursuant to subsection (A); or
    (3) calling for an investigatory hearing with no less than twenty days' notice to the insurer to obtain additional documentation, data, information, and testimony.
  (D) (1) Orders entered pursuant to subsection (C)(1) must be accompanied by findings and conclusions resulting from the director's or his designee's consideration and review of the examination report, relevant examiner work papers, and written submissions or rebuttals. The order must be considered a final administrative decision and may be appealed to the Administrative Law Judge Division as provided by law. The order must be served upon the insurer by certified mail, with a copy of the adopted examination report. Within thirty days of the issuance of the adopted report, the insurer shall file affidavits executed by each of its directors stating under oath that they have received a copy of the adopted report and related orders.
    (2) A hearing conducted under subsection (C)(3) by the director or his authorized representative must be conducted as a nonadversarial, confidential investigatory proceeding as necessary for the resolution of inconsistencies, discrepancies, or disputed issues apparent upon the face of the filed examination report or raised by or as a result of the director's or his designee's review of relevant work papers or by the written submission or rebuttal of the insurer. Within twenty days of the conclusion of the hearing, the director or his designee shall enter an order pursuant to subsection (C)(1).
      (a) The director may not appoint an examiner as an authorized representative to conduct the hearing. The hearing shall proceed expeditiously with discovery by the insurer limited to the examiner's work papers which tend to substantiate assertions set forth in a written submission or rebuttal. The director or his representative may issue subpoenas for the attendance of witnesses or the production of documents considered relevant to the investigation whether under the control of the department, the insurer, or other persons. The documents produced must be included in the record, and testimony taken by the director or his representative must be under oath and preserved for the record. Nothing contained in this section requires the department to disclose information or records which indicate or show the existence or content of an investigation or activity of a criminal justice agency.
      (b) The hearing shall proceed with the director or his representative posing questions to the person subpoenaed. After the questions the insurer and the department may present testimony relevant to the investigation. Cross examination may be conducted only by the director or his representative. The insurer and the department may make closing statements and be represented by counsel of their choice.
  (E) (1) Upon completion of the examination report under subsection (C)(1), the director or his designee shall hold the content of the examination report as private and confidential information for the thirty-day period provided for written submissions or rebuttals. Thirty days after the examination report has been submitted to it if the insurer examined has neither notified the director or his designee of its acceptance and approval of the report nor requested to be heard on it, the report must be filed as a public document and is open to public inspection, as long as no court of competent jurisdiction has stayed its publication.
    (2) This section does not prohibit the director or his designee from disclosing the content of an examination report, preliminary examination report, or results or related matters to the insurance department of this or another state or country, or law enforcement officials of this or another state or agency of the federal government so long as the agency or office receiving the reports, results, or related matters agrees in writing to hold them confidential and in a manner consistent with Sections 38-13-10 through 38-13-60.
    (3) If the director or his designee determines that regulatory action is appropriate as a result of an examination, he may initiate proceedings or actions provided by law.
  (F) All work papers, recorded information, documents, and their copies produced by, obtained by, or disclosed to the director, his designee, or other persons in the course of an examination made under this chapter must be given confidential treatment, are not subject to subpoena, and must not be made public by the director, or other persons, except to the extent provided in subsection (E). Access also may be granted to the National Association of Insurance Commissioners. The parties shall agree in writing before receiving the information to provide to it the same confidential treatment as required by this section, unless the prior written consent of the insurer to which it pertains has been obtained or unless ordered by a court of competent jurisdiction. The information may be provided to the consumer advocate as provided in Section 37-6-605 pursuant to an appropriate proprietary agreement to ensure confidentiality.

  Section 38-13-40. (A) No examiner may be appointed by the director if the examiner, directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in a person subject to examination under Section 38-13-10. This section does not preclude automatically an examiner from being:
    (1) a policyholder or claimant under an insurance policy;
    (2) a grantor of a mortgage or similar instrument on the examiner's residence to a regulated entity if done under customary terms and in the ordinary course of business;
    (3) an investment owner in shares of regulated diversified investment companies; or
    (4) a settlor or beneficiary or a `blind trust' into which otherwise impermissible holdings have been placed.
  (B) Notwithstanding the requirements of this section, the director may retain on an individual basis qualified actuaries, certified public accountants, or other similar individuals who are practicing their professions independently, even though the persons may be employed or retained similarly by persons subject to examination under Section 38-13-10.

  Section 38-13-50. The insurer shall pay the charges incurred in the examination, including the expenses of the director or his designee and the expenses and compensation of his examiners and assistants. The director or his designee promptly shall institute a civil action to recover the expenses of examination against an insurer which refuses or fails to pay.

  Section 38-13-60. (A) No cause of action may arise nor may liability be imposed against:
    (1) the director, the director's authorized representatives or his designees, or an examiner appointed by the director for statements made or conduct performed in good faith while carrying out Sections 38-13-10 through 38-13-40;
    (2) a person for communicating or delivering information or data to the director or the director's authorized representative or examiner pursuant to an examination made under Section