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TO EXTEND THE SPENDING LIMITATION IMPOSED PURSUANT TO THE FISCAL DISCIPLINE PLAN OF 2004 THROUGH FISCAL YEAR 2010-2011, TO PROVIDE FOR THE USES OF SURPLUS GENERAL FUND REVENUE DURING THIS EXTENSION TO INCLUDE, IN ORDER OF PRIORITY, REPAYING ANY ACCUMULATED GENERAL FUND DEFICITS, RESTORATION OF THE GENERAL RESERVE FUND, RESTORATION OF "OTHER FUNDS" ACCOUNTS USED IN PRIOR FISCAL YEARS TO OFFSET REDUCED GENERAL FUND REVENUES AND TO ESTABLISH THE HIGHWAY IMPROVEMENTS AND DEFERRED MAINTENANCE FUND TO RECEIVE THE FIRST ONE BILLION DOLLARS OF GENERAL FUND SURPLUS REVENUE NOT OTHERWISE OBLIGATED WHICH MUST BE APPROPRIATED BY THE GENERAL ASSEMBLY FOR ROAD IMPROVEMENTS AND DEFERRED MAINTENANCE ON ROADS, AND TO PROVIDE THAT ALL SURPLUS GENERAL FUND REVENUES NOT OTHERWISE OBLIGATED MAY BE APPROPRIATED OR USED TO OFFSET REVENUE REDUCTIONS AS THE GENERAL ASSEMBLY MAY PROVIDE BY LAW, AND TO PROVIDE THAT THIS EXTENSION, IF IT PROVIDES A LOWER SPENDING LIMIT THAN EXISTING LAW AND IS ENACTED WITH THE REQUISITE SPECIAL AFFIRMATIVE VOTE, IS A NEW CONSTITUTIONAL SPENDING LIMIT ADOPTED PURSUANT TO THE PROVISIONS OF THE QUINQUENNIAL REVIEW OF THE SPENDING LIMITATION.

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

SECTION    1.    (A)    The provisions of Section 4(A) of Act 256 of 2004, the Fiscal Discipline Plan of 2004 (the Plan), otherwise scheduled to expire as provided in Section 4(C) of the Plan, is extended for the time and for the purposes provided in subsection (B) of this section.

(B)(1)    At the time Section 4(A) of the Plan is otherwise scheduled to expire, its provisions are extended without interruption, but the provisions of subsection (B) and (C) of Section 4 of the Plan no longer apply. Instead, the provisions of items (2) and (3) of this subsection apply.

(2)    Notwithstanding any other provisions of law providing for the use of surplus general fund revenues:

(a)    the State Treasurer shall transfer to the appropriate depository accounts the amount of any surplus necessary to offset any general fund operating deficit;

(b)    if any surplus remains after subitem (a) is accomplished, the remaining surplus must be applied to restore the General Reserve Fund to the amount required pursuant to Article III, Section 36 of the constitution of this State and Section 11-11-310 of the 1976 Code;

(c)    if any surplus remains after subitems (a) and (b) are accomplished, the remaining surplus must be applied to restore amounts from 'other funds' accounts transferred in previous fiscal years to the general fund to offset reduced general fund revenues; and

(d)    if any surplus remains after subitems (a), (b), and (c) are accomplished, the balance must be placed in an account in the State Treasury separate from the general fund and all other funds titled The Highway Improvements and Deferred Maintenance Trust Fund until the total amount credited to this fund equals one billion dollars. Earnings on this fund must be credited to it and unexpended fund revenues remain in the fund and are carried forward to succeeding fiscal years. Revenues in this fund must be appropriated by the General Assembly only for road improvement projects and deferred maintenance road projects.

(3)    When the total amount appropriated pursuant to item (2)(d) of this section equals one billion dollars, the provisions of item 2(d) of this section no longer apply and the General Assembly may appropriate or use to offset revenue reductions any available general fund surplus as it determines appropriate.

(4)    The extension of the Fiscal Discipline Plan of 2004 as modified in this joint resolution continues through appropriations for fiscal year 2010-2011, after which the provisions of this joint resolution no longer apply. To the extent this joint resolution provides a lower limit on spending than is provided in Article X, Section 7(c) of the Constitution of this State and Section 11-11-310 of the 1976 Code and if this joint resolution is enacted with the required special affirmative vote, the provisions of this joint resolution are deemed to be the constitutional spending limitation set pursuant to the 2005 review of the constitutional spending limitation as provided in the second paragraph of Section 7(c), Article X of the Constitution of this State, which reads:

"During the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter, the General Assembly shall conduct and complete a review of the law implementing this subsection. During such session, only a vote of two-thirds of the members of each branch present and voting shall be required to change the existing limitation on appropriation. Unless that is done, the existing limitations shall remain unchanged."

SECTION    3.    This joint resolution takes effect upon approval by the Governor.