South Carolina General Assembly
106th Session, 1985-1986

Continuation of Appropriations Act

SECTION 25
TO AMEND SECTIONS 9-1-10 AND 9-11-10 OF THE 1976 CODE, RELATING
TO THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA
POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO CHANGE THE DEFINITION
OF AVERAGE FINAL COMPENSATION FROM AVERAGE ANNUAL EARNABLE
COMPENSATION OF A MEMBER DURING THREE CONSECUTIVE FISCAL YEARS TO
TWELVE CONSECUTIVE QUARTERS.
  A. Item (17) of Section 9-1-10 of the 1976 Code is amended to
read: 
  "(17) 'Average final compensation' with respect to those
members retiring on or after July 1, 1986, means the average
annual earnable compensation of a member during the twelve
consecutive quarters of his creditable service on which regular
contributions as a member were made to the System producing the
highest such average; a quarter means a period January through
March, April through June, July through September, or October
through December. An amount up to and including forty-five days
termination pay for unused annual leave at retirement may be
added to the average final compensation. Average final
compensation for an elected official may be calculated as the
average annual earnable compensation for the thirty-six
consecutive months prior to the expiration of his term of
office;".
  B. Item (14) of Section 9-11-10 of the 1976 Code is amended to
read: 
  "(14) 'Average final compensation after July 1, 1986' means the
average annual compensation of a member during the twelve
consecutive quarters of his creditable service on which regular
contributions as a member were made to the System producing the
highest such average; a quarter means a period January through
March, April through June, July through September, or October
through December. An amount up to and including forty-five days'
termination pay for unused annual leave at retirement may be
added to the average final compensation. Average final
compensation for an elected official may be calculated as the
average annual earnable compensation for the thirty-six
consecutive months prior to the expiration of his term of
office."
SECTION 26
TO AMEND SECTION 12-21-2720 OF THE 1976 CODE, RELATING TO THE
LICENSING OF COIN-OPERATED DEVICES, SO AS TO PROVIDE A LICENSE OF
ONE HUNDRED DOLLARS ON MACHINES OF THE CRANE TYPE; TO AMEND
SECTION 16-19-60, RELATING TO OFFENSES INVOLVING COIN-OPERATED
DEVICES, SO AS TO ALLOW FOR THE DISPENSING OF PROPERTY FROM COIN-
OPERATED DEVICES; AND TO PROVIDE FOR AN EFFECTIVE DATE FOR
LICENSES ISSUED FOR FISCAL YEAR 1986-87.
  A. Section 12-21-2720 of the 1976 Code, as added by an act of
1986 bearing ratification number 310, is amended to read:
  "Section 12-21-2720. Every person who maintains for use or
permits the use of, on any place or premises occupied by him, any
of the machines or devices described below shall apply for and
procure from the South Carolina Tax Commission a license for the
privilege of making use of every such machine in South Carolina
and shall pay for the license a tax of twenty-five dollars for
each machine described in item (1) below, one hundred dollars for
each machine described in item (2) below, and three hundred
sixty-five dollars for each machine described in item (3) below.
  (1) Any machine for the playing of music or kiddy rides
operated by a slot or mechanical amusement devices and juke boxes
wherein is deposited any coin or thing of value.
  (2) Any machine for the playing of amusements, or video games,
without free play feature or machines of the crane type operated
by a slot wherein is deposited any coin or thing of value; and
any machine for the playing of games or amusements, which has a
free play feature, operated by slot wherein is deposited any 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 can be altered or changed.
  (3) Any machine of the nonpayout type, in-line pin game, or
video game with free play feature operated by a slot wherein is
deposited any 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 can be altered or
changed.
  Municipalities may increase the amount charged as license for
the operation of the machines over the maximum amounts allowed
before March 28, 1956, by a sum not to exceed twenty percent. No
municipality may limit the number of machines within the
boundaries of the municipality. 
  B. Section 16-19-60 of the 1976 Code is amended to read:
  "Section 16-19-60.  Nothing in Section 16-19-40 or 16-19-50
shall extend to coin-operated nonpayout machines with a free play
feature; provided, that nothing herein shall authorize the
licensing, possession, or operation of any machine which
disburses money to the player."
  C. This section, upon approval of the Governor, shall be
effective for licenses issued for fiscal year 1986-87.
SECTION 27
TO AMEND SECTION 16-3-1150 OF THE 1976 CODE, RELATING TO
EMERGENCY AWARDS WITH RESPECT TO COMPENSATION OF VICTIMS OF
CRIME, SO AS TO LIMIT THE TOTAL AMOUNT OF EMERGENCY AWARDS TO ONE
THOUSAND DOLLARS, RATHER THAN ONE THOUSAND FIVE HUNDRED DOLLARS;
AND TO AMEND SECTION 16-3-1180, RELATING TO, AMONG OTHER THINGS,
THE AMOUNT OF AWARD AS COMPENSATION OF VICTIMS OF CRIME, SO AS TO
LIMIT A BURIAL AWARD TO ONE THOUSAND DOLLARS, RATHER THAN TWO
THOUSAND DOLLARS, AND TO LIMIT AWARDS IN THE AGGREGATE TO THREE
THOUSAND DOLLARS, RATHER THAN TEN THOUSAND DOLLARS.
  A. Section 16-3-1150 of the 1976 Code is amended to read:
  "Section 16-3-1150.  Notwithstanding the provisions of Section
16-3-1130, if it appears to the deputy director that the claim is
one with respect to which an award probably will be made and
undue hardship will result to the claimant, if immediate payment
is not made, the deputy director may make one or more emergency
awards to the claimant pending a final decision in the case,
provided that (a) the amount of each emergency award shall not
exceed five hundred dollars, (b) the total amount of such
emergency awards shall not exceed one thousand dollars, (c) the
amount of such emergency awards must be deducted from any final
award made to the claimant, and (d) the excess of the amount of
any emergency award over the amount of the final award, or the
full amount of any emergency award if no final award is made,
must be repaid by the claimant to the Victim's Compensation Fund
as created by this article."
  B. Subsection (2) of Section 16-3~ 0 of the 1976 Code is
amended to read:
  "(2) In the event of death of a victim or intervenor, an award
may be made for actual expenses reasonably incurred for burial
not to exceed one thousand dollars."
  C. Subsection (4) of Section 16-3-1180 of the 1976 Code is
amended to read:
  "(4) No award made under the provisions of this article shall
exceed three thousand dollars in the aggregate."
SECTION 28
TO AMEND SECTION 59-18-10 OF THE 1976 CODE RELATING TO THE
INCENTIVE GRANT FUND PROGRAM FOR SCHOOLS AND SCHOOL DISTRICTS FOR
EXCEPTIONAL PERFORMANCE, SO AS TO, AMONG OTHER THINGS PROVIDE FOR
THE REWARDING OF SCHOOLS AND SCHOOL DISTRICTS FOR EXCEPTIONAL OR
IMPROVED PERFORMANCE, PROVIDE THAT SCHOOL DISTRICTS WILL BE
REWARDED ACCORDING TO SPECIFIC CRITERIA ESTABLISHED BY THE STATE
BOARD OF EDUCATION, AND REQUIRE THE STATE BOARD OF EDUCATION TO
ESTABLISH PROCEDURES WHEREBY AREA VOCATIONAL CENTERS ARE ELIGIBLE
TO RECEIVE INCENTIVE GRANT FUNDS IN 1986-87.
  Section 59-18-10 of the 1976 Code is amended to read:
  "Section 59-18-10. Beginning in school year 1985-86, an
incentive grant fund program must be established by the State
Board of Education, acting through the State Department of
Education, to reward schools and school districts for exceptional
or improved performance for criteria such as: (a) student
achievement gain; (b) student attendance; (c) teacher attendance;
(d) student attitudes toward learning; (e) parent participation:
and (f) any other factors promoting or maintaining high levels of
achievement and performance.
  School districts will be rewarded according to specific
criteria established by the State Board of Education.
  The State Board of Education shall establish procedures whereby
area vocational centers are eligible to receive incentive grant
funds in 1986-87. Beginning with the 1987-88 school year, area
vocational centers will be rewarded according to specific
criteria established by the State Board of Education.
  No school, area vocational center. or school district is
eligible for incentive grant funds unless the student achievement
gain criterion is met.
  The incentive grant funds must be allocated on a per pupil
basis. However, .in order to be eligible to receive these funds,
the schools or school districts shall meet the criteria
established by the State Board of Education. The State Board of
Education shall promulgate regulations that ensure that the
districts of the State utilize these funds to improve or maintain
exceptional performance in the schools pursuant to the above
criteria."
SECTION 29
TO AMEND SECTION 12-27-330, AS AMENDED, OF THE 1976 CODE,
RELATING TO DOMESTIC OIL COMPANIES RETAINING A PORTION OF TAX
COLLECTED FOR ADMINISTRATIVE COSTS, SO AS TO INCREASE THE
PERCENTAGE AND MAXIMUM AMOUNT OF TAX THE COMPANY MAY RETAIN.
  Section 12-27-330 of the 1976 Code, as last amended by Act 506
of 1980, is further amended to read:
  "Section 12-27-330. For the purpose of defraying the attendant
administrative costs any domestic oil company in this State
filing a timely monthly return and tax remittance as required by
Section 12-27-320 may deduct from the tax so remitted two and
sixty-five hundredths percent of the tax collected pursuant to
Sections 12-27-230 and 12-27-240. The amount of the deduction may
not exceed seven hundred fifty dollars for any one month."
SECTION 30
TO AMEND SECTION 46-47-70 OF THE 1976 CODE RELATING TO THE POWERS
OF THE SOUTH CAROLINA STATE FAMILY FARM DEVELOPMENT AUTHORITY, SO
AS TO AUTHORIZE THE AUTHORITY TO SPONSOR OR PARTICIPATE IN
PROGRAMS WITH OTHER ENTITIES INCLUDING NONPROFIT CORPORATIONS,
WHICH ARE EMPOWERED TO LEND TO ELIGIBLE FARMERS.
  Item 29 of Section 46-47-70 of the 1976 Code is amended to
read: 
  "29. Participate in and cooperate with the programs Or the
Farmers Home Administration, the Federal Land Bank, and any other
agency or instrumentality of the United States and sponsor or
participate in programs with other entities, including nonprofit
corporations which may be empowered to make loans to farmers of
the beneficiary class, and participate in and cooperate with any
program of another agency of the State or a political subdivision
in the administration of any of the programs authorized by, or
the exercise of any of the powers granted by, this chapter."
SECTION 31
TO REQUIRE INSURANCE COMPANIES OF ANY CLASS EXCEPT BENEVOLENT
INSTITUTIONS TO PAY AN ANNUAL LICENSE FEE, AN INSURANCE PREMIUM
TAX, FILE WITH THE COMMISSIONER A RETURN OF PREMIUMS COLLECTED,
AUTHORIZE THE COMMISSIONER TO SUSPEND OR REVOKE THE LICENSE OF A
COMPANY WHICH FAILS TO MAKE RETURNS OR PAY FEES; TO REQUIRE
INSURANCE COMPANIES DOMICILED IN OTHER STATES THAT ARE SUBJECT TO
GREATER REQUIREMENTS IN THE DOMICILIARY STATE TO BE SUBJECT TO
SUCH REQUIREMENTS IN ORDER TO DO BUSINESS IN THIS STATE; TO AMEND
SECTION 38-57-110 OF THE 1976 CODE, RELATING TO ANNUAL REPORT OF
PREMIUMS OF FOREIGN FIRE INSURANCE COMPANIES, SO AS TO REQUIRE
FIRE INSURANCE COMPANIES TO FILE AN ANNUAL REPORT IF THEY ARE
INCORPORATED IN THIS STATE AS WELL AS IN ANOTHER STATE OR
COUNTRY; TO CONTINUE THE INSURANCE TAX STUDY COMMITTEE; TO
INCREASE LICENSE FEES OF AGENTS, AGENCIES, ADJUSTERS, BROKERS,
AND APPRAISERS; TO AMEND SECTION 38-47-30, RELATING TO ISSUANCE
OF LICENSES TO INSURANCE BROKERS, SO AS TO INCREASE THE
COMMISSION LICENSE FEE FROM FIFTY TO ONE HUNDRED DOLLARS; TO
AMEND SECTION 38-49-30, RELATING TO FEES FOR INSURANCE ADJUSTERS'
LICENSES, SO AS TO INCREASE THE FEE FROM TWENTY TO FORTY DOLLARS;
TO AMEND SECTION 38-51-90, RELATING TO FEES FOR LICENSES OF
INSURANCE AGENTS, SO AS TO INCREASE THE FEE FOR EACH LOCAL AGENT
FROM TEN TO TWENTY DOLLARS, EACH STATE, SPECIAL, OR GENERAL AGENT
FROM TWENTY-FIVE TO FIFTY DOLLARS, EACH AGENCY FROM TEN TO TWENTY
DOLLARS EXCEPT THAT THE FEE APPLICABLE TO A COMMON CARRIER
SELLING TRANSPORTATION TICKET POLICIES ON ACCIDENT AND HEALTH
INSURANCE OR BAGGAGE INSURANCE IS INCREASED FROM FIVE TO TEN
DOLLARS; TO AMEND SECTION 56-13-20, AS AMENDED RELATING TO
LICENSE FEES FOR MOTOR VEHICLE PHYSICAL DAMAGE APPRAISERS, SO AS
TO INCREASE THE FEE FROM TWENTY TO FORTY DOLLARS, AND TO REPEAL
SECTIONS 38-5-310, 38-5-320, 38-5-330, 38-5-340, 38-5-350, 38-5-
360, 38-5-370, 38-5-380, 38-5-390, 38-5-400, 38-5-410, 38-5-420,
38-5-430, 38-5-440, 38-5-450, 38-5-460, 38-5-470, 38-5-480, AND
38-5-500 RELATING TO THE COLLECTION AND DISPOSITION OF INSURANCE
COMPANY LICENSE FEES AND TAXES.
  A. (1) Every insurance company of any class except benevolent
institutions organized under the grand lodge system, shall,
before transacting any business in this State, pay a license fee
of four hundred dollars to the Chief Insurance Commissioner and
shall thereafter pay to the Commissioner an annual license fee of
four hundred dollars by March first of each year.
  (2) In addition to the license fees required in subsection (1),
the Commissioner shall collect from each insurance company
licensed by him to do business in this State a license fee of two
hundred dollars for each kind of insurance for which the company
is licensed as defined in items (a) through (g) of Section
38-5-20. Each mutual company doing a property business only in no
more than three counties shall pay an annual fixed license fee of
fifty dollars and each mutual company doing a property business
only in a single county shall pay an annual fixed license fee of
twenty dollars. The license fees required in this subsection must
be paid co the Commissioner before the company transacts any
business in this State, and shall thereafter be paid annually to
the Commissioner by March first of each year.
  (3) All of the insurance license fees collected by the
Commissioner pursuant to this section must be deposited by him in
the general fund of the State.
  B. In addition to all license fees and taxes otherwise provided
by law, there is levied upon each insurance company licensed by
the Commissioner 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 are excluded, but
dividends paid or credited to policyholders are included.
  The insurance premium taxes collected by the Commissioner
pursuant to this section must be deposited by him in the general
fund of the State.
  C. (1) Not later than March first of each year, every insurance
company licensed by the Commissioner shall file with him a return
of premiums collected by the company in the State during the
immediately preceding calendar year ending on December thirty-
first. The return must be made on forms prescribed by the
Commissioner and must be made under oath by the company s
employee or representative responsible for the preparation of fee
and tax returns, as well as the company's chief executive
officer.
  (2) The license fees imposed in subsection A of this section
must be fully reported on the return filed in accordance with
paragraph (1) of this subsection. 
  (3) The premium and other taxes imposed on insurance companies
pursuant to subsections B and E of this section and Sections
38-5-1250, 38-57-120, and 42-5-140 must be paid to the
Commissioner 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 Commissioner.
    (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 item (1) of this subsection. 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 item (1) of this
subsection.
  (4) The Commissioner may suspend or revoke the license of any
company 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.
  D. One-fourth of the insurance premium taxes collected under
subsection B of this section, and one-fourth of the retaliatory
collections made under subsection E of this section which are
attributable to the tax levied in subsection B, are allotted to
the several counties, respectively, in proportion to the latest
official United States census of such counties and are hereby
appropriated to ordinary county purposes. No county license fee
or tax may be levied on insurance companies. As soon as possible
after March first of each year, the State Treasurer, upon a
warrant from the Comptroller General, shall pay to the county
treasurer of each county its proportionate share of the insurance
premium taxes and retaliatory collections described in this
section.
  E. Whenever the laws of any other state require of insurance
companies chartered by this State and having agents in the other
state, or of the agents thereof, any deposit of securities in the
State for the protection of policyholders or otherwise or any
payment of taxes, penalties, interest, certificates of authority,
license fees, filing fees, or otherwise, greater than the amount
required for the same purposes from similar companies of other
states by the then existing laws of this State, all the similar
companies of the states establishing or having theretofore
established an agency or agencies in this State shall make the
same deposit for a like purpose with the Commissioner and pay to
the Commissioner for taxes, penalties, interest, certificates of
authority, license fees, filing fees, or any other fees, an
amount equal to the amount of the charges imposed by the laws of
the state upon companies of this State and the agencies thereof.
  Whenever the laws of any other state or the regulation or
action of any public official of the other state subject
insurance companies chartered by this State to any restrictions
obligations, conditions, or penalties for the privilege of doing
business in the other state which are greater than those required
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 the other state
must be subjected to the greater requirements imposed by or in
the other state upon similar insurers of this State.
  F. Section 38-57-110 of the 1976 Code is amended to read:
  "Section 38-57-110. Every fire insurance company carrying on
business in this State shall return to the Chief Insurance
Commissioner within sixty days after December thirty-first of
each year 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, and from all fire insurance business done,
in this State. In such report the company shall allocate the
premium on such business to the county in which the property is
located, regardless of where the insurance is written or premiums
collected."
  G. Notwithstanding the restrictions of Sections 38-43-610 and
38-43-910 of the 1976 Code, any insurer or rating organization
affected thereby may, at any time up until April 1, 1987, make a
filing with the Commissioner requesting a change in rates solely
to reflect changes in tax liabilities imposed by this act. After
that date, the twelve-month limitations set forth in Sections
38-43-610 and 38-43-910 of the 1976 Code are fully applicable.
  In addition, any insurer issuing individual accident and health
insurance policies whose rates are regulated by the Commissioner
under Section 38-35-410 of the 1976 Code may, upon approval by
the Commissioner, adjust the premium rates chargeable on such
policies outstanding on the effective date of this section to
reflect changes in tax liabilities imposed by this section
provided that the policy permits the adjustment of premium rates
after the inception date of the policy and the insurer makes the
adjustment at the time and in the manner specified in the policy.
  H. Each license issued under Article 1 of Chapter 5 of Title 38
of the 1976 Code is for an indefinite term unless sooner revoked
or suspended. 
  I. The insurance Tax Study Committee created under S. 591 of
1985 is continued in existence to monitor insurance fees and tax
collections. The Chief Insurance Commissioner shall periodically
report to the committee on fees and taxes collected by him. The
committee shall make a report of its findings and recommendations
to the General Assembly at its 1987 session.
  J. The quarterly payments required of insurance companies for
June 1, 1986, and September 1, 1986, are due and payable to the
Chief Insurance Commissioner on or before September 1, 1986.
  K. Item (1) of Section 38-47-30 of the 1976 Code is amended to
read: 
  "(1) The payment of an annual Commission license fee of one
hundred dollars which is fully earned when received, not
refundable." 
  L. Section 38-49-30 of the 1976 Code is amended to read:
  "Section 38-49-30. The fee for an adjuster's license, as
required by Section 38-49-10, is forty dollars payable in
advance, which is fully earned when received, not refundable,
transferable, nor portable. Whenever the laws of any other state
of the United States require South Carolina adjusters to pay a
license fee greater than the fee required in this State of
nonresident adjusters, then in each such case nonresident
adjusters are required to pay an amount equal to the amount of
such charges imposed by the laws of such state upon adjusters of
this State."
  M. Section 38-51-90 of the 1976 Code is amended to read:
  "Section 38-51-90. The following annual fees are applicable to
agents' licenses:
    Each local agent, twenty dollars;
    Each state, special, or general agent, fifty dollars;
    Each agency, twenty dollars, except that the fee applicable
to any agent of a common carrier who sells only transportation
ticket policies on accident and health insurance or baggage
insurance on personal effects is ten dollars.
  The fees must be paid in advance. License fees for local,
state, or special agents must be paid by the company for whom the
agent proposes to act, or by which the proposed agent is vouched
for in the application for license. The Chief Insurance
Commissioner may issue semiannual licenses."
  N. Section 56-13-20 of the 1976 Code, as last amended by Act 44
of 1981, is further amended to read:
  "Section 56-13-20. No person shall act as an appraiser for
motor vehicle physical damage claims on behalf of any insurance
company or firm or corporation engaged in the adjustment or
appraisal of motor vehicle claims unless such person has first
secured a license from the Chief Insurance Commissioner and has
paid a license fee of forty dollars, which is fully earned when
received, not refundable, transferable, nor portable. The Chief
Insurance Commissioner may prescribe reasonable regulations
concerning standards for qualification, suspension, or revocation
of such licenses and the methods by which licensees shall conduct
their business."
  O. Sections 38-5-310, 38-5-320, 38-5-330, 38-5-340, 38-5-350,
38-5-360, 38-5-370, 38-5-380, 38-5-390, 38-5-400, 38-5-410,
38-5-420, 38-5-430, 38-5-440, 38-5-450, 38-5-460, 38-5-470,
38-5-480, and 38-5-500 of the 1976 Code are repealed.
  P. The provisions of this section shall take effect July 1,
1986.
SECTION 32
TO AMEND THE 1976 CODE BY ADDING CHAPTER 49 TO TITLE 46 SO AS TO
PROVIDE FOR THE SUPERVISION AND REGULATION OF MILK OR MILK
PRODUCTS BY THE SOUTH CAROLINA DEPARTMENT OF AGRICULTURE AND TO
REPEAL ARTICLE 1, CHAPTER 33, OF TITLE 39 RELATING TO THE STATE
DAIRY BOARD.
  A. Title 46 of the 1976 Code is amended by adding:
"CHAPTER 49
Supervision and Regulation of Milk and Milk Products
  Section 46-49-10. As used in this chapter, unless otherwise
stated or the context of the subject matter clearly indicates
otherwise, the words and terms enumerated below are defined as
follows:
  (1) 'Person' means an individual, partnership, corporation,
association, or other business entity.
  (2) 'Distributor' means any of the following persons wherever
located or operating, whether within or without the State of
South Carolina, doing business and engaged in receiving,
producing, processing, manufacturing, subdistribution,
distributing, marketing, or handling in any manner any of the
products covered by this chapter and offering such products for
sale in this State.
  A person, irrespective of whether such person is a producer,
except a distributor who sells less than one hundred gallons of
fluid milk products per day which are produced on his own farm:
    (a) who receives, processes, manufactures, and packages any
products covered by this article for human consumption;
    (b) who offers for sale any products covered by this chapter
at wholesale or retail;
    (c) who operates a store or other establishment from which
any products covered by this chapter are offered for sale at
retail.
  (3) 'Producer' means any person, irrespective of whether such
person is also a distributor or member or a producer association
who produces milk for sale as fluid milk in the State.
  (4) 'Independent producer' means any producer who is not a
member of a producer association or association of producers.
  (5) 'Market' means any county or group of counties within this
State, including the State as a whole.
  (6) 'Producer association or association of producers' means
any cooperative association of producers incorporated and
existing under the cooperative laws of South Carolina or any such
association incorporated and existing under similar laws of
another state, which is authorized to do business in South
Carolina and which the Board determines to have full authority
for the sales of milk and dairy products of its members.
  (7) 'Store' means any establishment which purchases or
otherwise acquires in processed and packaged form any of the
products covered by this chapter for use or resale for human
consumption.
  (8) 'Licensee' means any person required to obtain a license by
this chapter and any person who is a de facto licensee under this
chapter. 
  (9) 'Milk' means the clean lacteal secretion obtained by the
complete milking of one or more healthy cows, including milk that
is cooled, pasteurized, standardized, or otherwise processed with
a view of selling it as fluid milk, cream, skimmed milk, cultured
milk, or as any other fluid milk product.
  (10) 'Subsidiary' means any person over whom a distributor or
an affiliate of a distributor has, or several distributors
collectively have, either directly or indirectly, actual or legal
control, whether by stock ownership or in any other manner.
  (11) 'Affiliate' means any person or subsidiary thereof who
has, either directly or indirectly, actual or legal control over
a distributor, whether by stock ownership or otherwise.
  (12) 'Books and records' means any books, records, accounts,
invoices, contracts, financial statements, memoranda, documents,
papers, correspondence, or other data pertaining to the business
of any person. 
  (13) 'Costs' means money paid or financial obligations incurred
by a person in the production, manufacture, or acquisition of any
products covered by this chapter and the amount of money paid, or
financial obligations incurred in the processing, packaging,
distributing, marketing, advertising, and selling, including all
administrative and overhead costs, of such products.
  (14) 'Doing business' means the engaging in or the transaction
of any activity in this State for the purpose of financial profit
or gain. 
  (15) 'Department' means the South Carolina Department of
Agriculture. 
  Section 46-49-20. The products covered by this chapter are all
Grade A milk and milk products defined pursuant to Section
44-1-140. The products include Grade A raw milk for
pasteurization, reconstituted milk derived by recombining dry
milk solids, evaporated or condensed milk with water, which is
processed for sale as a fluid milk product, and all Grade A milk
products from whatever source derived which include, but are not
limited to, pasteurized, homogenized, flavored and cultured milk,
skim milk, lowfat milk, creamy buttermilk, and cultured milk
products. 
  Section 46-49-30. The Department of Agriculture shall
establish, supervise, and regulate:
  (1) A uniform classified milk purchasing plan based upon the
sales, utilization, and disposition of all milk received from
producers and other sources by each individual distributor or a
uniform classified milk purchasing plan based upon the total
market-wide sales, utilization, and disposition of all milk
received from producers and other sources by all distributors in
any market.
  (2) A statewide uniform production incentive plan for the
establishment of producers' milk bases which most effectively
encourages more even year-round production of milk in order to
provide a constant and adequate supply of fresh, wholesome milk
for the inhabitants of this State and the producers' bases must
be used by distributors to allocate to producers' milk disposed
of in each class.
  The department may receive and disburse any funds necessary to
effectuate the operation of a market-wide milk purchasing plan.
Nothing in this chapter may be construed to extend or to limit
the authority of the Department of Health and Environmental
Control relating to milk or milk products within this State as
provided by item (3) of Section 44-1-140.
  Section 46-49-40. The department may hold hearings to
investigate any matters affecting the state dairy industry.
  The department has the authority under this section to issue
subpoenas, take depositions of witnesses, and grant immunity from
prosecution for violation of terms under the statutes for giving
testimony or furnishing records in the course of an
investigation.
  The department may apply to any court of competent jurisdiction
for orders requiring compliance by persons failing or refusing to
comply with the provisions of this chapter.
  Section 46-49-50. The department shall require all licensees to
maintain records pertaining to the acquisition, processing,
marketing, and sale of milk, and to file verified reports
containing the information within the time and in the manner
prescribed by the department. Records required to be kept by the
licensees must be preserved for a period of three years.
  The department shall have access to all books and records
required by this section and employees of the department may
enter all places of business during regular working hours for the
purpose of inspecting, auditing, or copying the records. Audits
of milk processing plants to ensure proper payment to dairy
farmers for milk based upon its classified usage and
administration of the milk base plan may not be conducted by the
department more than once quarterly unless there is some
indication from a previous audit that there has been
noncompliance. Audits may not extend beyond a review of milk
records necessary to ensure proper payment to dairy farmers for
milk based upon its classified usage and administration of the
milk base plan. Except for the proper enforcement of this
chapter, any information pertaining to a person or a business
obtained by the department from reports, audits, or
investigations, or otherwise, may not be made public in a form
enabling identification of any particular person or business.
  Section 46-49-60. A distributor shall not engage, either
directly or indirectly, in doing business in any market until he
has applied for and obtained a license from the department. A
store is not required to make application for a license but is
considered to be a de facto licensee as required in this chapter.
The department may classify licensees and may issue licenses to
distributors to produce, receive, process, manufacture, or sell
any of the products covered by this chapter in any particular
market.
  The department may decline to grant a license or may suspend or
revoke a license already granted upon due notice and after a
hearing before the department whenever the applicant or licensee
has violated regulations issued by the Department of Health and
Environmental Control, or any provisions of this chapter.
  The department may, in lieu of license suspensions, invoke a
penalty of not less than fifty dollars nor more than five
thousand dollars. All receipts from the penalties must be paid by
the department to the State Treasurer.
  Section 46-49-70. Any person violating any provision of this
chapter or any regulations or orders promulgated pursuant to this
chapter or any license issued by the department is guilty of a
misdemeanor and upon conviction must be punished by a fine of not
less than twenty-five dollars nor more than two hundred dollars
or by imprisonment for not more than thirty days, and each day
during which the violation continues is considered a separate
violation.
  Section 46-49-80. Solicitation by or collusion or joint
participation between or among any producer, association of
producers, manufacturer, distributor or store, or any
representative, to violate any of the provisions of this chapter
and regulations or orders issued pursuant to this chapter, or the
use of any misrepresentation, threat, intimidation, or boycott to
effectuate the commission of the violations makes all persons
participating subject to the same penalties as for actual
violations.
  Section 46-49-90. The department shall promulgate regulations
to carry out the provisions of this chapter."
  B. Article 1, Chapter 33, Title 39 of the 1976 Code is
repealed.
SECTION 33
EXPRESSING THE SENSE OF THE GENERAL ASSEMBLY THAT THE DEPARTMENT
OF HIGHWAYS AND PUBLIC TRANSPORTATION SHOULD COMPLY WITH THE
SECTION OF THE FEDERAL SURFACE TRANSPORTATION ASSISTANCE ACT OF
1982 RELATING TO PARTICIPATION OF MINORITY BUSINESS ENTERPRISES
AND AUTHORIZING THE DEPARTMENT TO PROMULGATE REGULATIONS AND
TAKE
OTHER ACTIONS TO INSURE COMPLIANCE.
  It is the sense of the General Assembly that the Department of
Highways and Public Transportation should comply with Section
105(f) of the Federal Surface Transportation Assistance Act of
1982 (STAA-1982). The department is directed to effectuate and
assure the compliance through contract documents and regulations
as may be necessary and such input from the Governor's Office
(Office of Small and Minority Business Assistance) in the
promulgation of the regulations.
SECTION 34
TO AMEND SECTION 20-7-1315 OF THE 1976 CODE, RELATING TO
PROCEDURES FOR WITHHOLDING VARIOUS TYPES OF INCOME TO SECURE THE
PAYMENT OF CHILD SUPPORT OR SPOUSAL SUPPORT OBLIGATIONS, SO AS TO
DELETE A PROVISION THAT ALLOWS AN EMPLOYER WHO HAS LESS THAN
TWENTY-FIVE EMPLOYEES TO ELECT NOT TO PERFORM THESE REQUIRED
WITHHOLDINGS.
  Item (1) of subsection (H) of Section 20-7-1315 of the 1976
Code, added by Act 195 of 1985, is amended to read:
  "(1) Where a payor wilfully fails to withhold or pay over
income pursuant to a notice to withhold, the court upon notice
and hearing may enter judgment and direct the issuance of an
execution against the payor for the total amount that the payor
wilfully failed to withhold. A payor who wilfully refuses to
hire, or who discharges or otherwise penalizes an obligor as
prohibited by subsection (E)(9), is subject to a civil fine not
to exceed five hundred dollars which may be imposed by the court
in its discretion."
SECTION 35
TO AUTHORIZE THE DEPARTMENT OF HIGHWAYS AND PUBLIC
TRANSPORTATION
TO DEVELOP AND IMPLEMENT A PLAN FOR THE ADMINISTRATION OF A
"CAFETERIA PLAN", AS DEFINED BY SECTION 125 OF THE INTERNAL
REVENUE CODE OF 1954, FOR ITS EMPLOYEES AND TO REQUIRE THE SOUTH
CAROLINA RETIREMENT SYSTEM TO COOPERATE WITH THE DEPARTMENT IN
THE IMPLEMENTATION OF THE "CAFETERIA PLAN".
  The Department of Highways and Public Transportation is
authorized to develop and implement a plan for the administration
of a "Cafeteria Plan", as defined by Section 125 of the Internal
Revenue Code of 1954, for its employees. The South Carolina
Retirement System is mandated to cooperate with the department in
the implementation of the "Cafeteria Plan".
SECTION 36
TO AMEND SECTION 8-7-90 OF THE 1976 CODE, RELATING TO LEAVES OF
ABSENCES AUTHORIZED IN ANY ONE YEAR FOR PUBLIC OFFICERS AND
EMPLOYEES FOR NATIONAL GUARD OR OTHER MILITARY RESERVE SERVICE,
SO AS TO FURTHER DEFINE THE PHRASE "IN ANY ONE YEAR".
  Section 8-7-90 of the 1976 Code is amended by adding at the
end: 
  "As used in this section, the phrase 'in any one year' means
either a calendar year or, in the case of members required to
perform active duty for training or such other duties within or
on a fiscal year basis, the fiscal year of the national guard or
reserve component issuing the orders."
SECTION 37
TO AMEND SECTION 12-27-380, AS AMENDED, OF THE 1976 CODE,
RELATING TO THE DISTRIBUTION OF GASOLINE TAX TO COUNTIES, SO AS
TO PROVIDE THAT A PORTION OF THE TAX REVENUES ALLOCATED TO
CERTAIN COUNTIES MUST BE DISTRIBUTED TO THE MUNICIPALITIES WITHIN
THE COUNTY, TO PROVIDE A FORMULA FOR THE DISTRIBUTION OF THE
MONIES, AND TO AUTHORIZE A COUNTY AND THE MUNICIPALITIES LOCATED
IN IT TO AGREE TO OTHER DISTRIBUTION ARRANGEMENTS.
  Section 12-27-380 of the 1976 Code, as last amended by act 177
of 1981, is further amended by adding at the end:
  "Notwithstanding the above provisions of this section, the
allocation to a county with two municipalities with a population
of fifty thousand or more pursuant to this section must be
apportioned among the county and the municipalities in the county
in the ratio which the mileage of public roads for which the
county is responsible and actually maintains in the
unincorporated area and of public roads for which the
municipality is responsible and actually maintains in each
municipality bears to the total public road mileage for which the
municipalities and the county are responsible and actually
maintain in the county as shown by the latest official records of
the Department of Highways and Public Transportation. County and
municipal governing bodies may by written memoranda of agreement
agree to a distribution of funds in a manner other than as
prescribed by this section, and any existing agreement between a
county and a municipality remains in effect.
  In any county having a city with a population of eighteen
thousand, seven hundred fifty-eight according to the 1980 United
States Census, the funds allocated to the county under the
provisions of this section must be distributed between the
incorporated and unincorporated areas of the county in the same
method as the funds are distributed to the counties as provided
above."
SECTION 38
TO AMEND SECTION 40-7-180 OF THE 1976 CODE, RELATING TO CERTAIN
BARBER FEES, SO AS TO PROVIDE THAT THE FEE FOR A MASTER HAIR CARE
CERTIFICATE IS THIRTY-FIVE DOLLARS A YEAR.
  Section 40-7-180 of the 1976 Code is amended by adding at the
end: 
  "The fee for a master hair care certificate is thirty-five
dollars a year."
SECTION 39
TO AMEND SECTION 8-11-55 OF THE 1976 CODE, RELATING TO
COMPENSATORY TIME FOR WORKING OVERTIME FOR STATE EMPLOYEES, SO AS
TO PROVIDE THAT COMPENSATORY TIME, IF GRANTED, MUST BE IN
ACCORDANCE WITH THE FEDERAL FAIR LABOR STANDARDS ACT OF 1938.
  Section 8-11-55 of the 1976 Code is amended to read:
  "Section 8-11-55. Any state employee who is required to work
overtime during any particular week may, as a result, be given
compensatory time by his agency. Compensatory time, if granted,
must be in accordance with the Federal Fair Labor Standards Act
of 1938 as amended."
SECTION 40
TO AMEND SECTION 44-53-520, AS AMENDED, OF THE 1976 CODE,
RELATING TO FORFEITURE OF PROPERTY WITH RESPECT TO CONTROLLED
SUBSTANCES, SO AS TO PROVIDE THAT ALL PROPERTY WHICH IS KNOWINGLY
USED TO FACILITATE PRODUCTION, MANUFACTURING, DISTRIBUTION, SALE,
IMPORTATION, EXPORTATION, OR TRAFFICKING IN VARIOUS CONTROLLED
SUBSTANCES IS SUBJECT TO FORFEITURE.
  Item (4) of subsection (a) of Section 44-53-520 of the 1976
Code, as last amended by an act of 1986 bearing ratification
number 445, is further amended to read:
  "(4) All property, both real and personal, which in any manner
is knowingly used to facilitate  production, manufacturing,
distribution, sale, importation, exportation, or trafficking in
various controlled substances as defined in this article;".
SECTION 41
TO AMEND SECTION 12-21-2728 OF THE 1976 CODE, RELATING TO
LOCATION LICENSE TAXES ON COIN-OPERATED DEVICES, SO AS TO REQUIRE
AN OPERATOR'S LICENSE BEFORE ENGAGING IN OR OPERATING COIN-OPERATED
DEVICES.
  Section 12-21-2728 of the 1976 Code, as added by Act 308 of
1986, is amended to read:
  "Section 12-21-2728. In addition to all other licenses required
by this chapter any person who owns or operates devices described
in Sections 12-21-2720 and 12-21-2730 must obtain an operator's
license in the amount as follows:
    (a) twenty-five dollars for devices described in Section
12-21-2720, item (1), and Section 12-21-2730;
    (b) one hundred dollars for devices described in Section
12-21-2720, item (2);
    (c) one thousand dollars for devices described in Section
12-21-2720, item (3).
  Only one license is required regardless of the number or type
of devices owned or operated, and the cost of that license must
be the highest fee enumerated in this section for any device so
owned or operated.
  The licenses provided by this section are subject to the
provisions of Section 12-21-2734.
  The licenses required by this section are a condition precedent
to engaging in or the continuing operation of machines described
in this chapter. Failure to remit any taxes to the State is
justification for the cancellation of the license provided
herein."
SECTION 42
TO AMEND SECTION 56-3-620, AS AMENDED, OF THE 1976 CODE, RELATING
TO THE REGISTRATION AND LICENSE FEES FOR PRIVATE PASSENGER-
CARRYING VEHICLES, SO AS TO INCREASE THE FEE TO SEVENTEEN DOLLARS
EXCEPT FOR PERSONS SIXTY-FIVE YEARS OR OLDER OR WHO ARE
HANDICAPPED AND TO PROVIDE THAT THE ANNUAL FEE FOR A PROPERTY-
CARRYING VEHICLE OF FIVE THOUSAND POUNDS OR LESS REGISTERED BY A
PERSON SIXTY-FIVE YEARS OF AGE OR OLDER IS FIFTEEN DOLLARS; TO
AMEND SECTION 56-3-760, RELATING TO THE REGISTRATION FEE FOR
MOTORCYCLES, SO AS TO INCREASE THE FEE TO FIVE DOLLARS; AND TO
AMEND SECTION 56-19-420, AS AMENDED, RELATING TO FEES FOR
CERTIFICATES OF TITLE, SO AS TO INCREASE THE FEE TO FIVE DOLLARS
FOR THE ISSUANCE, TRANSFER, OR DUPLICATION OF A CERTIFICATE OF
TITLE AND TO PROVIDE FOR THE DISPOSITION OF THE INCREASED
REVENUES.
  A. Section 56-3-620 of the 1976 Code, as last amended by Act
506 of 1980, is further amended to read:
  "Section 56-3-620. (1) For persons sixty-five years of age or
older, or persons who are handicapped as this term is defined in
Section 56-3-1950, the annual registration fee for every private
passenger-carrying vehicle shall be ten dollars.
  (2) For all persons under the age of sixty-five years, the
annual registration fee for every  private passenger-carrying
vehicle shall be seventeen dollars.
  (3) For persons sixty-five years of age or older, the annual
registration fee for any property-carrying vehicle with a gross
weight of five thousand pounds or less shall be fifteen dollars."
  B. Section 56-3-760 of the 1976 Code is amended to read:
  "Section 56-3-760. For every motorcycle or motor-driven cycle,
the annual registration fee shall be five dollars."
  C. Section 56-19-420 of the 1976 Code, as last amended by Act
738 of 1976, is further amended to read:
  "Section 56-19-420.  The department shall charge five dollars
for:
    (1) the issuance of a certificate of title;
    (2) the transfer of a certificate of title; or
    (3) the issuance of a duplicate certificate of title."
  D. The amount of revenue derived from the fee increases
established in this section which exceeds the revenue generated
pursuant to Sections 56-3-620, 56-3-760, and 56-19-420 of the
1976 Code prior to the effective date of this section shall be
expended by the department to improve access routes to distressed
and impacted areas of the State. 
  E. The provisions of this section shall take effect July 1,
1986.
SECTION 43
TO AMEND SECTIONS 9-1-1790 AND 9-11-90, BOTH AS AMENDED, OF THE
1976 CODE, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEMS AND
THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO
INCREASE THE AMOUNT A RETIRED MEMBER WHO RETURNS TO COVERED
EMPLOYMENT MAY EARN WITHOUT AFFECTING HIS BENEFITS FROM SEVEN
THOUSAND FIVE HUNDRED DOLLARS TO EIGHT THOUSAND DOLLARS.
  A. Section 9-1-1790 of the 1976 Code, as last amended by
Section 42, Part II, of Act 201 of 1985, is further amended to
read:
  "Section 9-1-1790. Any retired member of the System may return
to employment covered by the System and earn up to eight thousand
dollars a fiscal year without affecting the monthly retirement
allowance he is receiving from the System. If the retired member
continues in service after having earned eight thousand dollars
in a fiscal year, his retirement allowance must be discontinued
during his period of service in the remainder of the fiscal year.
If the employment continues for at least forty-eight consecutive
months the provisions of Section 9-1-1590 apply. The provisions
of this section do not apply to any employee or member of the
System who has mandatorily retired because of age pursuant to
Section 9-1-1530.
  B. Subsection (4) of Section 9-11-90 of the 1976 Code, as last
amended by Section 42, Part II, of Act 201 of 1985, is further
amended to read: 
  "(4) Notwithstanding the provisions of subsections (1) and (2)
of this section, any retired member of the System may return to
employment covered by the System and earn up to eight thousand
dollars a fiscal year without affecting the monthly retirement
allowance he is receiving from the System. If the retired member
continues in service after having earned eight thousand dollars
in a fiscal year, his retirement allowance must be discontinued
during his period of service in the remainder of the fiscal year.
If the employment continues for at least forty-eight consecutive
months the provisions of Section 9-1-1590 apply. The provisions
of this section do not apply to any employee or member of the
System who has mandatorily retired because of age pursuant to
Section 9-1-1530."
SECTION 44
TO AMEND SECTION 1-11-65 OF THE 1976 CODE, RELATING TO APPROVAL
OF REAL PROPERTY TRANSACTIONS BY THE BUDGET AND CONTROL BOARD, SO
AS TO ELIMINATE EXEMPTIONS.
  Section 1-11-65 of the 1976 Code is amended to read:
  "Section 1-11-65. All transactions involving real property by
any governmental bodies, excluding political subdivisions of the
State, must be approved by and recorded with the State Budget and
Control Board."
SECTION 45
TO AMEND SECTION 12-35-110, AS AMENDED, OF THE 1976 CODE,
RELATING TO THE DEFINITION OF THE TERMS "SALE AT RETAIL" AND
"RETAIL SALE", SO AS TO EXCLUDE FROM SUCH DEFINITION ALL SALES OF
TANGIBLE PERSONAL PROPERTY AND COMPONENTS, TO MANUFACTURERS OR
CONTRACTORS FOR USE IN PERFORMANCE OF A CONSTRUCTION CONTRACT,
WHERE SUCH PROPERTY OR COMPONENTS ARE PROCESSED, FABRICATED, OR
MANUFACTURED IN THE STATE AND TRANSPORTED TO, ASSEMBLED,
INSTALLED, OR ERECTED AT JOB SITES OUTSIDE THE STATE AND
THEREAFTER USED SOLELY OUTSIDE THE STATE; AND TO PROVIDE THAT THE
PROVISIONS OF THIS SECTION APPLY TO ALL SALES MADE ON OR AFTER
JANUARY 1, 1983.
  A. Section 12-35-110 of the 1976 Code, as last amended by
Section 66A, PART II, of Act 512 of 1984, is further amended by
inserting the following paragraph after the second paragraph of
the section: 
  "There are specifically excluded from the definition of the
terms 'sale at retail' and 'retail sale' all sales of tangible
personal property, and components into which such property is
incorporated, to a manufacturer or contractor for use in the
performance of a construction contract, regardless of where such
tangible personal property and components shall have been
purchased, which property and components are processed, partially
or completely fabricated, or manufactured in the State and
transported to, assembled, installed, or erected at job sites
outside the State and thereafter used solely outside the State." 
  B. The provisions of subsection A of this section shall apply
to all sales made on or after January 1, 1983.
SECTION 46
TO AMEND ARTICLE 9, CHAPTER 9, TITLE 11, OF THE 1976 CODE,
RELATING TO PROJECTING AND FORECASTING STATE REVENUES AND
EXPENDITURES, BY ADDING SECTION 11-9-890 SO AS TO REQUIRE,
BEGINNING AUGUST 15, 1986, THE BOARD OF ECONOMIC ADVISORS TO
DELINEATE THE OFFICIAL FISCAL YEAR 1986-87 REVENUE ESTIMATES BY
QUARTERS; AND TO PROVIDE THAT IF AT THE END OF THE FIRST OR
SECOND QUARTER OF ANY FISCAL YEAR QUARTERLY REVENUE COLLECTIONS
ARE FOUR PERCENT OR MORE BELOW THE AMOUNT PROJECTED BY THE BOARD
OF ECONOMIC ADVISORS, THE BUDGET AND CONTROL BOARD, WITHIN
FIFTEEN DAYS OF THAT DETERMINATION, SHALL TAKE ACTION TO AVOID A
YEAR-END DEFICIT.
  Article 9, Chapter 9, Title 11, of the 1976 Code is amended by
adding: 
  "Section 11-9-890. A. Beginning August 15, 1986, the Board of
Economic Advisors shall delineate the official fiscal year
1986-87 revenue estimates by quarters. In all subsequent revenue
estimates made under the provisions of Section 11-9-880, the
Board of Economic Advisors shall incorporate quarterly revenue
estimates within the annual revenue estimate.
  B. If at the end of the first or second quarter of any fiscal
year quarterly revenue collections are four percent or more below
the amount projected for that quarter by the Board of Economic
Advisors, the Budget and Control Board, within fifteen days of
that determination, shall take action to avoid a year-end
deficit.
SECTION 47
TO AMEND SECTION 11-11-310 OF THE 1976 CODE, RELATING TO
LIMITATIONS ON ANNUAL APPROPRIATIONS AND THE CAPITAL EXPENDITURE
FUND, SO AS TO REVISE THE AMOUNTS WHICH MUST BE APPROPRIATED EACH
YEAR IN THE ANNUAL GENERAL APPROPRIATIONS ACT INTO THE CAPITAL
EXPENDITURE FUND AND TO PROVIDE THAT THE BUDGET AND CONTROL BOARD
IN MANDATING SPENDING CUTS TO MEET A PROJECTED DEFICIT DURING ANY
FISCAL YEAR MUST FIRST REDUCE APPROPRIATIONS TO THE CAPITAL
EXPENDITURE FUND FOR THAT YEAR BEFORE MANDATING ANY CUTS IN
OPERATING APPROPRIATIONS.
  The fourth and fifth paragraphs of Section 11-11-310 are
amended to read:
  "The General Assembly beginning with fiscal year 1985-86 in the
annual General Appropriations Act shall appropriate into a
Capital Expenditure Fund which is separate and distinct from the
General Reserve Fund the following amounts:
    1. For fiscal year 1985-86, the amount appropriated must be
one-half of one percent of the general fund revenue estimate for
that year; 
    2. For fiscal year 1986-87, the amount appropriated must be
one percent of the general fund revenue estimate for that year; 
    3. For fiscal year 1987-88, the amount appropriated must be
one and one-half percent of the general fund revenue estimate for
that year; 
    4. For fiscal year 1988-89, the amount appropriated must be
two percent of the general fund revenue estimate for that year; 
    5. For fiscal year 1989-90 and for each fiscal year
thereafter, the amount appropriated must be two and one-half
percent of the general fund revenue estimate for that year. This
appropriation must be contained in the Ways and Means Committee
report on the General Appropriations Bill, the General
Appropriations Bill at the time of third reading in the House of
Representatives, the Senate Finance Committee report on the
General Appropriations Bill, the General Appropriations Bill at
the time of a third reading in the Senate, and in any conference
report on the General Appropriations Bill. Revenues in this
Capital Expenditure Fund may be appropriated by the General
Assembly in separate legislation for the purpose of accelerating
the retirement of state bonded indebtedness or for the purpose of
avoiding the issuance of bonds for projects that are authorized
but not issued. If the Board of Economic advisors' revenue
forecast to the Budget and Control Board at any time during a
fiscal year projects that revenues at the end of the fiscal year
will be less than appropriated expenditures for that year, the
Budget and Control Board in mandating reductions during the
fiscal year to eliminate the projected deficit must first reduce
to the extent necessary the current year's appropriation to the
Capital Expenditure Fund prior to mandating any cuts in operating
appropriations."
END OF PART II
PART III
TO MAKE SUPPLEMENTAL APPROPRIATIONS FROM SURPLUS
  SECTION 1. There is appropriated from 1985-86 surplus funds to
supplement the appropriations heretofore made in Act 201 of 1985
from Department of Mental Retardation's Prior Year Settlement,
$3,900,000, Medicaid Escrow Account, $8,685,156, and the Food
Stamps Sales Tax Waiver of $6,086,156:
AGENCY                         TOTAL        GENERAL
                               FUNDS         FUNDS
Sec 3A-Senate
  NCSL Meeting-Host
    State Expense            $ 16,000      $ 16,000
Total Senate                   16,000        16,000
Sec 5B-Gov's Ofc/SLED
  Nat'l Governor's Conf        60,000        60,000
  Equipment                    10,800        10,800
Total SLED                     70,800        70,800
Sec 13-Adjutant General
  McEntire Training
   Facility                    20,000        20,000
Total Adjutant General         20,000        20,000
Sec 16D-BCB/Info Resources
 Mgmt
  Data Base Mgmt Review        250,000      250,000
Total IRM                      250,000      250,000
Sec 16H-BCB/Human Resource
 Mgmt Hay Study                 50,000       50,000
Total Human Resource Mgmt       50,000       50,000
Sec 21-College of Charleston
  Avery Institute               25,000       25,000
Total College of Charleston     25,000       25,000
Sec 25A-USC/Columbia
  Koger Center                 300,000      300,000
  Underwater Antiquity         112,000      112,000
  Spanish Monument              20,000       20,000
Total USC/Columbia             432,000      432,000
Sec 25E-USC/Spartanburg
  Athletic Improvement          20,000       20,000
Total USC/Spartanburg           20,000       20,000
Sec 29-St Bd for Tech &
 Comp Ed
  Special Training Facility    750,000      750,000
Total TEC                      750,000      750,000
Sec 30-Dept of Education
  Science Ed Ctr Matching
   Funds                     1,600,000    1,600,000
Total Dept of Education      1,600,000    1,600,000
Sec 32-Wil Lou Gray
 Opport Sch
  Utility Repairs              106,000      106,000
Total Wil Lou Gray             106,000      106,000
Sec 35-Archives & History
  Equipment                    240,000      240,000
Total Archives & History       240,000      240,000
Sec 37-S. C. State Library
  Equipment-Blind &
   Handicapped                 136,500      136,500
  Moving Expense                27,000       27,000
Total State Library            163,500      163,500
Sec 39-State Museum
 Commission
  Moving Expenses               25,000       25,000
  Equipment-Exhibit            475,000      475,000
Total Museum Commission        500,000      500,000
Sec 41-DHEC
  Water & Sewer
    Projects/Limited
    to $50,000 per project     900,000      900,000
Total DHEC                     900,000      900,000
Sec 42-Dept of Mental
  Health FY 86 Operating
  Deficit                    7,800,000    7,800,000
Total Dept of Mental
  Health                     7,800,000    7,800,000
Sec 43-Comm on Alcohol &
 Drug Abuse
  Computer Equipment            35,000       35,000
Total Alcohol & Drug Abuse      35,000       35,000
Sec 45-Dept of Social
 Services
  Computer Equipment           800,000      800,000
Total DSS                      800,000      800,000
Sec 46-John de la Howe
 School
  Physical Plant Expansion     429,000      429,000
Total John de la Howe          429,000      429,000
Sec 57-Dept of Youth
 Services
  Roof Repair                  300,000      300,000
Total DYS                      300,000      300,000
Sec 60-Water Resources
  Olar Water Pump               30,000       30,000
  Contractual Services         300,000      300,000
Total Water Resources          330,000      330,000
Sec 61-Land Resources
  Contractual Services         312,000      312,000
  Equipment                     12,500       12,500
Total Land Resources           324,500      324,500
Sec 62-Forestry Commission
  Equipment                    150,000      150,000
Total Forestry Commission      150,000      150,000
Sec 63-Agriculture
 Department
  Pageland Scales               50,000       50,000
Total Agriculture Dept.         50,000       50,000
Sec 64-Family Farm Dev Auth
  Farm Credit Union-
    Revolving Fund             500,000      500,000
Total Family Farm Dev Auth     500,000      500,000
Sec 65-Clemson PSA
  Computer Equipment           250,000      250,000
  Wood Chemistry Research       42,245       42,245
  Agricultural Research        250,000      250,000
Total Clemson PSA              542,245      542,245
Sec 67-Wildlife & Marine
 Resources
  Aid to Other Entities         25,000       25,000
  Contractual Services          65,000       65,000
  Permanent Improvements        80,000       80,000
  Nat'l Gov's Confer Exp        32,340       32,340
  Mariculture Center Equip      60,000       60,000
Total Wildlife & Marine Res    262,340      262,340
Sec 69-Sea Grant Consortium
  Equipment                     23,000       23,000
Total Sea Grant                 23,000       23,000
Sec 70-Parks, Recreation
 Tourism
  Andrew Jackson State Park    100,000      100,000
  Century Farm                   1,000        1,000
Total PRT                      101,000      101,000
Sec 71-State Development Bd
  Engine Maintenance            90,000       90,000
Total Development Board         90,000       90,000
Sec 81-Insurance Commission
  Moving Expenses              160,000      160,000
Total Insurance Commission     160,000      160,000
Sec 86-Tax Commission
  Moving Expenses              256,000      256,000
  Temporary Services            70,150       70,150
  Computer Equipment           462,865      462,865
  Furniture & Equipment        486,000      486,000
Total Tax Commission         1,275,015    1,275,015
Sec 87-ABC Commission
  Nat'l Gov's Conference        15,960       15,960
Total ABC Commission            15,960       15,960
Sec 88-State Ethics
 Commission
  Computer Equipment            16,000       16,000
Total Ethics Commission         16,000       16,000
Sec 120-Aeronautics
 Commission
  Equipment                    148,200      148,200
  Darlington Airport
   Improvements                 45,000       45,000
Total Aeronautics
 Commission                    193,200      193,200
Sec 124-Contributions
  Carolina Children's Home      50,000       50,000
  Spartanburg Boys Home         12,500       12,500
  Spartanburg Girls Home        12,500       12,500
  Piedmont Medical Clinic
  (Greenville/Spartanburg)      40,000       40,000
  Total Contributions          115,000      115,000
                             ---------   ----------
Total Supplemental
  Appropriations           $18,655,560  $18,655,560
                             ---------   ----------
  SECTION 2. The following proviso shall regulate the expenditure
of appropriations in Section 1.
  Provided, that the amount appropriated herein for Science
Education Center shall be disbursed upon certification to the
State Superintendent of Education that private matching funds in
the same amount are available for the project.
  SECTION 3. The amount appropriated in this part may be carried
forward and expended for the same purpose in fiscal year 1986-87.
  SECTION 4. In the event there are 1985-86 surplus revenues or
lapsed funds above the revenues appropriated in Section 1 of Part
III, up to $591,000 shall be appropriated to the Educational
Television Commission for the purpose of expanding educational
television services (ITFS) and up to $250,000 shall be
appropriated to the Drug Science Foundation. 
  SECTION 5. In the event that surplus or lapsed funds do not
accumulate in the amount appropriated in Part III, the Budget and
Control Board shall first fund all supplemental appropriations
made for an operating deficiency and shall then reduce remaining
supplemental appropriations on a pro rata basis.
End of Part III
  All Acts or parts of Acts inconsistent with any of the
provisions of Part I or Part III of this Act are hereby suspended
for the Fiscal Year 1986-87.
  All Acts or parts of Acts inconsistent with any of the
provisions of Part II of this Act are hereby repealed.
  Except as otherwise specifically provided herein this Act shall
take effect immediately upon approval by the Governor.