General Appropriations Bill H. 4775 for the fiscal year beginning July 1, 2000
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TO AMEND CHAPTER 1, TITLE 9, OF THE 1976 CODE, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM, BY ADDING ARTICLE 17 SO AS TO ENACT THE TEACHER AND EMPLOYEE RETENTION INCENTIVE PROGRAM AND PROVIDE FOR ITS OPERATION; TO AMEND SECTIONS 9-1-1510 AND 9-1-1550, BOTH AS AMENDED, RELATING TO SERVICE RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE FROM THIRTY TO TWENTY-EIGHT THE YEARS OF CREDITABLE SERVICE REQUIRED TO RETIRE AT ANY AGE WITHOUT PENALTY; TO AMEND SECTIONS 9-1-1515, AS AMENDED, 9-1-1660, AND 9-1-1770, AS AMENDED, AND 9-1-1850, AS AMENDED, RELATING TO EARLY RETIREMENT OPTIONS, ELECTION OF A BENEFIT ON THE INSERVICE DEATH OF A MEMBER, AND AMOUNTS DUE ESTATES OF DECEASED MEMBERS UNDER THE GROUP LIFE INSURANCE PLAN, SO AS TO PROVIDE THAT THE ELECTION OF A MEMBER WITH TWENTY-FIVE YEARS CREDITED SERVICE TO BUY SUFFICIENT CREDIT FOR SERVICE RETIREMENT APPLIES TO THE SOUTH CAROLINA RETIREMENT SYSTEM, UPDATE THE BENEFIT ELECTION OPTION ON THE INSERVICE DEATH OF A MEMBER TO REFLECT OTHER CHANGES SINCE ORIGINAL ENACTMENT AND MAKE TECHNICAL CORRECTIONS, AND TO CONFORM THESE OPTIONS AND BENEFITS TO SERVICE RETIREMENT AFTER TWENTY-EIGHT YEARS CREDITABLE SERVICE AT ANY AGE WITHOUT PENALTY AS PROVIDED IN THIS ACT; TO AMEND SECTIONS 9-1-1810 AND 9-11-310, RELATING TO THE ANNUAL COST OF LIVING ADJUSTMENT AUTHORIZED FOR RETIREES AND BENEFICIARIES UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS' RETIREMENT SYSTEM AND THE METHOD OF CALCULATING THE ADJUSTMENT, SO AS TO MAKE MANDATORY THE PAYMENT OF AMOUNTS UP TO ONE PERCENT CALCULATED UNDER THE ADJUSTMENT FORMULA, ELIMINATE ANY ADJUSTMENT IN EXCESS OF THE RATE OF INFLATION, TO DELETE OBSOLETE PROVISIONS, AND TO CONFORM IN BOTH SECTIONS REFERENCES TO THE CONSUMER PRICE INDEX USED IN CALCULATING THE COST OF LIVING ADJUSTMENT; AND TO EXTEND ADDITIONAL EMPLOYER CONTRIBUTIONS FOR THE UNFUNDED LIABILITIES OF THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS' RETIREMENT SYSTEM FOR WHATEVER PERIOD IS REQUIRED TO PAY THE ACTUARIAL COSTS INCURRED BY THESE SYSTEMS UNDER THE PROVISIONS OF THIS SECTION.
Amend Title To Conform
A. Chapter 1, Title 9 of the 1976 Code is amended by adding:
Section 9-1-2210. (A) An active contributing member who is eligible for service retirement under this chapter and complies with the requirements of this article may participate in the Teacher and Employee Retention Incentive Program (program) when offered such an employment program by an employer participating in the system. A member participating in this program retires for the purposes of the system and the member's normal retirement benefit is calculated on the basis of the member's average final compensation and service credit at the time the program period begins. A member is ineligible to participate in the program after receiving a normal retirement benefit from the system. The program participant shall agree to continue employment with an employer or employers participating in the system for a specified program period, but the total program period regardless of the number of employers may not exceed five years from the time the program begins. A break in service while participating in the program ends the program for the participant. The member shall notify the system of the length of the program period before the beginning of the program period and of any change in employer while in the program. Participation in the program does not guarantee employment for the specified program period.
(B) During the specified program period, receipt of the member's normal retirement benefit is deferred. The member's deferred monthly benefit must be placed in the system's trust fund on behalf of the member. No interest is paid on the member's deferred monthly benefit placed in the system's trust fund during the specified program period.
(C) During the specified program period, the employer shall pay to the system the employer contribution for active members prescribed by law with respect to any program participant it employs, regardless of whether the program participant is a full-time or part-time employee, or a temporary or permanent employee. If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State.
(D) A program participant is retired from the retirement system as of the beginning of the program period. A program participant makes no further employee contributions to the system, accrues no service credit during the program period, and is not eligible to receive group life insurance benefits or disability retirement benefits. Accrued annual leave and sick leave used in any manner in the calculation of the program participant's retirement benefit is deducted from the amount of such leave accrued by the participant, and the balance, if any, transfers to the program employment in accordance with the employer's leave policies. A program employee accrues leave as a regular employee.
(E) A program participant is not subject to the earnings limitation imposed by this law on reemployed retirees during the specified program period.
(F) Upon termination of employment either during or at the end of the program period, the member must receive the balance in the member's program account by electing either:
(1) a lump-sum distribution, paying appropriate taxes; or
(2) to the extent permitted under law, a tax sheltered rollover into an eligible plan.
The member also must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program period began, plus any applicable cost of living increases declared during the program period. The program participant thereafter is subject to the earnings limitation of Section 9-1-1790.
(G) If a program participant dies during the specified program period, the member's designated beneficiary must receive the balance in the member's program account by electing either:
(1) a lump-sum distribution, paying appropriate taxes; or
(2) to the extent permitted under law, a tax sheltered rollover into an eligible plan.
(H) If a program participant fails to terminate employment with an employer participating in the retirement system within one month after the end of the specified program period, the member must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program began, plus any applicable cost of living increases declared during the program period. The program participant thereafter is subject to the earnings limitation of Section 9-1-1790. The program participant must also receive the balance in the member's program account by selecting one of the following alternatives:
(1) a lump-sum distribution, paying appropriate taxes; or
(2) to the extent permitted under law, a tax sheltered rollover into an eligible plan.
(I) A member is not eligible to participate in the program if the member has previously participated in and received a benefit under this program."
B. The first paragraph of Section 9-1-1510 of the 1976 Code is amended to read:
"Any A member may retire upon written application to the board system setting forth at what time, not more than ninety days prior before nor more than six months subsequent to after the execution and filing thereof of the application, he desires to be retired, if such the member at the time so specified for his service retirement shall have has attained the age of sixty years or shall have has thirty twenty-eight or more years of creditable service and shall have has separated from service and, if the time so specified is subsequent to after the date of application, notwithstanding that, during such the period of notification, he may have separated from service."
C. Section 9-1-1515 of the 1976 Code, as amended by Section 52, Part II, Act 100 of 1999, is further amended to read:
"Section 9-1-1515. (A) In addition to other types of retirement provided by this chapter, a member who has attained the age of fifty-five years and who has at least twenty-five years of creditable service may elect early retirement. A member electing early retirement shall apply in the manner provided in Section 9-1-1510.
(B) The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, the member's early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty twenty-eight. However, a member's early retirement allowance is not reduced if the member pays into the system, in a lump sum payment before the member's retirement, an amount equal to twenty percent of the member's earnable compensation or the average of the member's twelve highest consecutive fiscal quarters of compensation at the time of payment, whichever is greater, prorated for periods less than one year for each year of creditable service less than thirty twenty-eight. The member's retirement must occur not more than ninety days after the date of the payment.
(C) A member who elects early retirement under this section is ineligible to receive any cost-of-living increase provided by law to retirees until the second July first after the date the member attains age sixty; or the second July first after the date the member would have thirty twenty-eight years' creditable service had he not retired, whichever is earlier.
(D) (1) Except as provided in item (2) of this subsection, a member who elects early retirement under this section is not covered by the State Insurance Benefits Plan until the earlier of:
(a) the date the member attains age sixty, or
(b) the date the member would have thirty twenty-eight years' creditable service had he not retired.
(2) A member taking early retirement may maintain coverage under the State Insurance Benefits Plan until the date his coverage is reinstated pursuant to item (1) of this subsection by paying the total premium cost, including the employer's contribution, in the manner provided by the Division of Insurance Services of the State Budget and Control Board."
D. Subsections (A) and (B) of Section 9-1-1550 of the 1976 Code, as last amended by Act 189 of 1989, are further amended to read:
"(A) Upon retirement from service on or after July 1, 1964, a Class One member shall receive a service retirement allowance which shall consist of:
(1) An employee annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and
(2) An employer annuity equal to the employee annuity allowable at the age of sixty-five years or at age of retirement, whichever is less, computed on the basis of contributions made prior to the age of sixty-five years; and
(3) If he has a prior service certificate in full force and effect, an additional employer annuity which must be equal to the employee annuity which would have been provided at age sixty-five or at age of retirement, whichever is less, by twice the contributions which he would have made during his entire period of prior service had the system been in operation and had he contributed thereunder during such entire period.
Upon retirement from service on or after July 1, 1989 December 31, 2000, a Class One member shall receive a service retirement allowance computed as follows: If the member's service retirement date occurs on or after his sixty-fifth birthday, or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and forty-five hundredths percent of his average final compensation multiplied by the number of years of his creditable service.
If the member's service retirement date occurs before his sixty-fifth birthday and before he completes thirty twenty-eight years of creditable service, his service retirement allowance is computed as above, but is reduced by five-twelfths of one percent thereof for each month by which his retirement date precedes the first day of the month, prorated for periods less than a month, coincident with or next following his sixty-fifth birthday.
Notwithstanding the foregoing provisions, any Class One member who retires on or subsequent to July 1, 1976, shall receive not less than the benefit provided under the formula in effect before July 1, 1976.
(B) Upon retirement from service on or after July 1, 1989 December 31, 2000, a Class Two member shall receive a service retirement allowance computed as follows:
(1) If the member's service retirement date occurs on or after his sixty-fifth birthday or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and eighty-two hundredths percent of his average final compensation, multiplied by the number of years of his creditable service.
(2) If the member's service retirement date occurs before his sixty-fifth birthday and before he completes the thirty twenty-eight years of creditable service, his service retirement allowance is computed as in item (1) above but is reduced by five-twelfths of one percent thereof for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday.
(3) Notwithstanding the foregoing provisions, a Class Two member whose creditable service began before July 1, 1964, shall receive not less than the benefit provided by subsection (A) of this section."
E. Section 9-1-1660 of the 1976 Code is amended to read:
"Section 9-1-1660. (1) The person nominated by a member to receive the full amount of his accumulated contributions in the event of his death before retirement may, if such the member dies after the attainment of age sixty-five sixty or after the accumulation of fifteen years of creditable service and death occurs in service, elect to receive in lieu of the accumulated contributions an allowance for life in the same amount as if the deceased member had retired at the time of his death and had named the person as beneficiary under an election of Option 2 of Section 9-1-1620. For purposes of the benefit calculation, a member under age sixty with less than thirty twenty-eight years' credit is assumed to be sixty years of age.
(2) Any A person otherwise eligible under subsection (1) of this section to elect to receive an allowance who has attained age sixty-five or after the accumulation of thirty years of creditable service or after the attainment of age sixty with twenty or more years of creditable service but who has received a refund of the member's accumulated contributions under Section 9-1-1650 may, upon repayment of the refund to the system in a single sum, make the election provided for in subsection (1). The monthly payments under Option 2 to the person date from the time of the repayment of the accumulated contributions to the system."
F. The last paragraph of Section 9-1-1770 of the 1976 Code, as last amended by Act 412 of 1990, is further amended to read:
"Upon the death of a retired member on or after July 1, 1985 after December 31, 2000, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death life insurance, otherwise to the retired member's estate, a death benefit of one thousand dollars if the retired member had ten years of creditable service but less than twenty years, two thousand dollars if the retired member had twenty years of creditable service but less than thirty twenty-eight, and three thousand dollars if the retired member had at least thirty twenty-eight years of creditable service at the time of retirement, provided the retired member's most recent employer prior to retirement is covered by the Group Life Insurance Program."
G. Section 9-1-1810 of the 1976 Code is amended to read:
"Section 9-1-1810. As of the end of each calendar year commencing with the year ending December 31, 1969, the increase in the ratio of the Consumer Price Index to the index as of December 31, 1968, or the most recent prior December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, must be determined, and if the increase equals or exceeds three four percent, the retirement allowance, inclusive of the supplemental allowances payable under the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, of each beneficiary in receipt of an allowance as of December 31, 1968, or the most recent December thirty-first subsequent thereto as of which an increase was granted, must be increased by four percent. If the increase in the index is less than three four percent, the retirement allowance, inclusive of supplemental allowances, all as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances shall commence commences the July first immediately following the December thirty-first that the increase in ratio was determined. Beginning with the calendar year ending December 31, 1981, and all increases in retirement allowances must be granted to these beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any increase in allowances after the first five increases shall become is effective only if the additional liabilities, on account because of the increase in allowances, do not require an increase in the total employer rate of contribution except that any increase of up to and including one percent must be paid. Any increase in allowance granted hereunder pursuant to this section must be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.
The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section must, when and if payable, be increased by the same percent.
For purposes of this section, 'Consumer Price Index' means the Consumer Price Index for Wage Earners and Clerical Workers, as published by the United States Department of Labor, Bureau of Labor Statistics."
H. Section 9-1-1850 of the 1976 Code, as last amended by Act 420 of 1994, is further amended to read:
"Section 9-1-1850. (A) (1) A member who has at least twenty-five years of creditable service in any retirement the system provided in this title chapter may elect to receive up to five three years of additional service credit as though the additional service credit were rendered by the member as an employee or member by paying into the member's retirement system South Carolina Retirement System the amount provided in this item. The required amount is determined by multiplying the member's current salary or the highest fiscal year salary in the member's work career, whichever is greater, by the percentage provided in this item and multiplying the result by the number of years credited, prorated for periods less than one year. The applicable percentage of salary to calculate the payment allowed pursuant to this subsection is as follows:
Years to be Credited Percentage of Salary
(a) not more than one year 58 percent
(b) over one year but not more than two years 54 percent for each year
(c) over two years but not more than three years 50 percent for each year
(d) over three years, but not more than four years 46 percent for each year
(e) over four years 42 percent for each year
(2) The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased, or until the date the member attains age sixty, at which time the member becomes eligible for employer-paid health and dental insurance.
(3) Any service credit purchased under this subsection qualifies the member for retirement, and the member must retire within ninety days after the purchase.
(B) As an alternative to the option provided in subsection (A), the member, if he has at least twenty-five years of creditable service, may elect to receive up to five three years of additional service credit as though the additional service credit were rendered by him as an employee or member upon paying into his retirement system, during the ensuing number of years he wishes to purchase in the manner the Comptroller General shall direct, the employer and employee contributions that would be due for the position that he presently holds at the salary level in effect during those years. If the position is consolidated or eliminated after the member's retirement, he shall pay the employer and employee contributions during the remaining required years at a level equal to what these contributions were for the position before its consolidation or elimination. The member also shall pay the employer and employee cost for health and dental insurance in effect during the ensuing years the member wishes to purchase. The additional service credit qualifies the member for retirement, and the member must retire within ninety days subsequent to electing the option provided by subsection (B). The salary level of the position the member presently holds, during the ensuing years the member pays the employer and employee contributions, is attributable to the member for purposes determining the member's average final compensation.
The retirement benefits of the member shall not commence until the time benefits would have been paid when the member had completed thirty twenty-eight years of service."
I. Section 9-11-310 of the 1976 Code is amended to read:
"Section 9-11-310. As of the end of each calendar year commencing with the year ending December 31, 1974, the increase in the ratio of the Consumer Price Index to such the index as of December 31, 1973, or the most recent prior December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, must be determined, and if the increase equals or exceeds three four percent, the retirement allowance, exclusive of any part thereof derived from accumulated additional contributions, of each beneficiary in receipt of an allowance as of December 31, 1973, or the most recent December thirty-first subsequent thereto as of which an increase was granted, must be increased by four percent. If the increase in the index is less than three four percent, the retirement allowances, as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances must commence commences the July first immediately following the December thirty-first that the increase in ratio was determined.
Beginning with the calendar year ending December 31, 1981, all All increases in retirement allowances must be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. The increase in allowances after the first five such increases shall become becomes effective only if the additional liabilities on account of the increase in allowances do not require an increase in the employer rate of contribution except that any increase of up to and including one percent must be paid. Any increase in allowance granted hereunder pursuant to this section is permanent, irrespective of any subsequent decrease in the Consumer Price Index, and must be included in determining any subsequent increase.
The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section, must, when and if payable, must be increased by the same percent.
For purposes of this section, 'Consumer Price Index' means the Consumer Price Index (all items--United States city average), for Wage Earners and Clerical Workers as published by the United States Department of Labor, Bureau of Labor Statistics."
J. The second unnumbered paragraph of Section 9-1-1140 of the 1976 Code, as last amended by Act 420 of 1994 is further amended to read:
"A period of time up to one year for each pregnancy not to exceed a total of three years service credit may be established for maternity leave provided the member pays the full actuarial cost as determined by the board. However, the payment must not be less than twelve percent of the annual salary at the time of purchase or the average of the three highest consecutive fiscal years of salary at the time of purchase, whichever is greater, for a year of credit prorated for periods less than a year. To be eligible for maternity leave credit an employee must not be absent from work for a period greater than two years for each pregnancy."
K. This section takes effect January 1, 2001.
TO AMEND SECTION 12-36-2120, AS AMENDED, OF THE 1976 CODE, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO EXEMPT FROM THE TAX SALES OF CLOTHING, CLOTHING ACCESSORIES, FOOTWEAR, SCHOOL SUPPLIES, AND COMPUTERS DURING A PERIOD BEGINNING 12:01 A.M. ON THE FIRST FRIDAY IN AUGUST AND ENDING AT TWELVE MIDNIGHT THE FOLLOWING SUNDAY, TO PROVIDE EXCEPTIONS, AND TO REQUIRE THE DEPARTMENT OF REVENUE BEFORE JULY TENTH OF EACH YEAR TO PUBLISH AND MAKE AVAILABLE TO THE PUBLIC AND RETAILERS A LIST OF THE ARTICLES QUALIFYING FOR THIS EXEMPTION.
Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) (a) sales taking place during a period beginning 12:01 a.m. on the first Friday in August and ending at twelve midnight the following Sunday of:
(i) clothing;
(ii) clothing accessories including, but not limited to, hats, scarves, hosiery, and handbags;
(iii) footwear;
(iv) school supplies including, but not limited to, pens, pencils, paper, binders, notebooks, books, bookbags, lunchboxes, and calculators;
(v) computers, printers and printer supplies, and computer software.
(b) The exemption allowed by this item does not apply to:
(i) sales of jewelry, cosmetics, eyewear, wallets, watches;
(ii) sales of furniture;
(iii) a sale of an item placed on layaway or similar deferred payment and delivery plan however described;
(iv) rental of clothing or footwear;
(v) a sale or lease of an item for use in a trade or business.
(c) Before July tenth of each year, the department shall publish and make available to the public and retailers a list of those articles qualifying for the exemption allowed by this item."
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TO AMEND THE 1976 CODE BY ADDING SECTION 8-23-110 SO AS TO DIRECT THE DEFERRED COMPENSATION COMMISSION TO ENSURE THAT APPROPRIATE DEFERRED COMPENSATION PLAN DOCUMENTS ALLOW EMPLOYER CONTRIBUTIONS, TO ALLOW POLITICAL SUBDIVISIONS OF THE STATE, INCLUDING SCHOOL DISTRICTS, PARTICIPATING IN STATE DEFERRED COMPENSATION PLANS OR IN SUCH PLANS OF OTHER PROVIDERS TO MAKE EMPLOYER CONTRIBUTIONS, AND TO PROVIDE FOR MATCHING OR OTHER CONTRIBUTIONS BY THE STATE TO STATE EMPLOYEES PARTICIPATING IN SUCH PLANS TO THE EXTENT FUNDS ARE APPROPRIATED FOR THIS PURPOSE, AND TO PROVIDE THAT THE AMOUNT, TERMS, AND CONDITIONS OF THE CONTRIBUTIONS MUST BE DETERMINED BY THE STATE BUDGET AND CONTROL BOARD.
A. The 1976 Code is amended by adding:
"Section 8-23-110. (A) The commission shall ensure that plan documents governing deferred compensation plans administered by the commission permit employer contributions to the extent allowed under the Internal Revenue Code.
(B) Political subdivisions of the State, including school districts, participating in deferred compensation plans administered by the commission or such plans offered by other providers may make matching or other contributions on behalf of their participating employees.
(C) As an additional benefit for state employees, and to the extent funds are appropriated for this purpose, the State shall make matching or other contributions on behalf of state employees participating in the deferred compensation plans offered by the commission or such plans offered by other providers in an amount and under the terms and conditions prescribed for such contributions by the State Budget and Control Board."
B. This section takes effect July 1, 2000.
Section 12-6-40(A) of the 1976 Code, as last amended by Act 114 of 1999, is further amended to read:
"(A) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1998 1999, and includes the effective date provisions contained therein."
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A. Section 59-149-50 of the 1976 Code, as added by Act 418 of 1998, is amended to read:
"Section 59-149-50. (A) To be eligible for a LIFE Scholarship, a student must be either a member of a class graduating from a high school located in this State on or after May, 1995, a home school student who has successfully completed a high school home school program in this State in the manner required by law on or after May, 1995, or a student graduating from a preparatory high school outside this State on or after May, 1995, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent, and these students must also meet the requirements of subsection (B). In addition, beginning with the 1998-99 school year for those students who graduate from high school on or after May, 1998, the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale, and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better beginning with school year 2000-2001, and 1100 or better beginning with school year 2002-2003; provided that if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B).
(B) Students receiving a LIFE Scholarship to retain it and students currently enrolled in an eligible institution to receive such a scholarship must earn a 3.0 cumulative grade point average on a 4.0 scale each year and earn at least thirty credit hours each year for the maximum of semesters permitted at that institution by Section 59-149-60.
(C) Students who were LIFE Scholarship recipients seeking a degree at such a public or independent institution of this State during their freshman or other year who failed to earn a cumulative 3.0 at the end of the term they attempted the requisite number of hours required by subsection (B) may regain eligibility if their cumulative grade average is a 3.0 at the end of the term they have attempted at least sixty hours if they are a sophomore or ninety hours if they are a junior.
(D) By the year 2000, students graduating from high school to be eligible for a LIFE Scholarship must have passed all courses required for a STAR diploma."
B. Sections 59-39-105, 59-39-190, and 59-103-175 of the 1976 Code are repealed.
C. The funds appropriated for the LIFE Scholarship program in the general appropriations act of 2000-2001 must be adjusted to include the additional students qualifying for a LIFE Scholarship pursuant to the provisions of Section 59-149-50 as amended by subsection (A).
D. Section 59-149-90 of the 1976 Code, as amended by Section 73, Part II, Act 100 of 1999, is further amended to read:
"Section 59-149-90. (A) Students must not have been adjudicated delinquent or been convicted or pled guilty or nolo contendere to any felonies or any alcohol or drug related offenses under the laws of this or any other state or under the laws of the United States in order to be eligible for a LIFE Scholarship, except that a student who has been adjudicated delinquent or has been convicted or pled guilty or nolo contendere to an alcohol or drug related misdemeanor offense is ineligible only for one calendar year after the adjudication, conviction, or plea occurred.
(B) Regardless of the number of hours attempted, once the student has earned a bachelor's degree, he is ineligible for a LIFE Scholarship to seek another degree.
(C)      All students who earn a LIFE Scholarship under this chapter or the Palmetto Fellows Scholarship shall be recognized at graduation from high school with a certificate issued by the Department of Education."
E. This section takes effect July 1, 2000.
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TO AMEND SECTION 59-1-420, AS AMENDED, OF THE 1976 CODE, RELATING TO THE LENGTH OF THE SCHOOL TERM, SO AS TO REVISE THE MANNER IN WHICH THE TEN DAYS NOT REQUIRED FOR STUDENT INSTRUCTION MUST BE USED.
A. Section 59-1-420 of the 1976 Code, is amended to read:
"Section 59-1-420. Notwithstanding any other provision of law, the statutory school term is one hundred ninety days annually and at least one hundred eighty days must be used for student instruction. and Of the remaining ten days, may two days must be used for preparation of opening and closing of schools, for in-service training, and for teacher planning and preparation time. At least three days may be used for the opening and closing of schools and for teacher planning and preparation and two days may be used in teacher-parent conferences with emphasis upon failing and underachieving students. Provided, further, that conferences may be held on Saturday at the direction of the local school board. Three days must be used for collegial professional development based upon the educational standards as required by Section 59-18-300 of the Education Accountability Act of 1998. The professional development shall address, at a minimum, academic achievement standards including strengthening teachers' knowledge in their content area, teaching techniques, and assessment. The remaining five days may be used for teacher planning, academic plans, and parent conferences."
B. The provisions of Section 59-1-420 of the 1976 Code as amended in subsection A. apply beginning with school year 2000-2001.
A. Title 9 of the 1976 Code is amended by adding:
Section 9-20-10. As used in this chapter:
(1) 'Employer' means a school district which receives funding from the State from the annual appropriation to the Department of Education for Aid to School Districts - Employer Contributions in the annual general appropriations act.
(2) 'Employee' means a person employed full time by a public school district who is:
(a) certified and teaching in the classroom;
(b) assisting a certified classroom teacher;
(c) a professional specialist having direct contact with students;
(d) an academic subject, or specialty area coordinator or director working in a school or school district;
(e) a principal, vocational center director, assistant principal or vocational center assistant director, district assistant, county or area superintendent.
(3) 'Participant' means an employee who participates in the optional retirement program provided by this chapter.
Section 9-20-20. There is established an optional retirement program for public school (kindergarten through grade twelve) teachers, specialists, coordinators, and administrators. An employee is not eligible to participate in the optional retirement program unless the employee is eligible for membership in the South Carolina Retirement System. Retirement and death benefits must be provided for a participant in the optional retirement program through individual annuity contracts or individual certificates issued for group annuity contracts, fixed or variable in nature, or a combination of them, which must be issued to, and become the property of, the participant, or through mutual fund companies, or through state or national banking institutions. The employer and the participant shall contribute toward the purchase of the contract or investment under this program. The contribution made by the employer must be derived, in whole or in part, from the funds appropriated annually by the General Assembly as Aid to School Districts - Employer Contributions in the Department of Education appropriation in the annual general appropriations act. In accordance with the definition provided in Section 9-20-10(2), the State Department of Education annually shall provide to the South Carolina Retirement System a listing of positions that qualify an employee for the optional retirement program.
Section 9-20-30. The South Carolina Retirement System shall provide for the administration of the optional retirement program under this chapter. The director of the South Carolina Retirement System shall designate no fewer than four companies to provide annuity contracts, mutual fund accounts, or similar investment products offered through state or national banking institutions, or a combination of them, under the program. In making the designation the director shall consider:
(1) the nature and extent of the rights and benefits to be provided by the contracts or accounts, or both, of participants and their beneficiaries;
(2) the relation of the rights and benefits to the amount of contributions to be made;
(3) the suitability of these rights and benefits to the needs of the participants;
(4) the ability and experience of the designated companies in providing suitable rights and benefits under the contracts or accounts, or both;
(5) the ability and experience of the designated companies to provide suitable education and investment options.
Section 9-20-40. Employees first employed in an eligible position or job classification within each school district after June 30, 2000, shall elect either to join the South Carolina Retirement System or to participate in the optional retirement program under this chapter on or before December 1, 2000, or within ninety days after the entry into service, whichever is later, or failing to make the initial election within the required time, the employee is considered to have elected membership in the South Carolina Retirement System. An election made pursuant to this section must be made in writing and filed with the retirement system and the appropriate officer of the employee's participating employer and is effective on the date of employment.
The election to participate in the optional retirement program is irrevocable. However, an employee who participates in the optional retirement program may irrevocably elect to join the South Carolina Retirement System upon the passage of five consecutive calendar years after initial enrollment in the optional retirement program. The optional retirement participant must make this election to participate in the South Carolina Retirement System within ninety days after the expiration of five consecutive calendar years after the employee's initial enrollment in the optional retirement program, or failing to make the election within the allotted time, the employee is considered to have irrevocably elected to participate in the optional retirement program. Upon joining the system, the employee may establish up to five years of credit in the system for service earned while participating in the optional retirement program, by making a payment to the system in an amount determined by the board.
Section 9-20-50. Each participant shall contribute monthly to the program the same amount he would be required to contribute to the South Carolina Retirement System if the participant were a member of that system. Participant contributions may be made by payroll deduction, by a reduction in salary, or by employer pick up in accordance with any applicable provisions of the Internal Revenue Code of 1986. Each employer shall contribute on behalf of each participant the same amount it would be required to contribute to the South Carolina Retirement System if the participant were a member of that system. Each employer shall remit to the designated companies, for application to participants' contracts or accounts, or both, an amount equal to the participant's contribution plus that percentage of each employer's contribution which would have been used to fund all retirement system benefits for future service if the participants had been members of the retirement system, but the employer's contribution may not be less than four and one-quarter percent of compensation. The employer shall remit the remainder of its required contribution to the retirement system, but the contribution to the retirement system must not be less than two and fifty-five hundredths percent of the employee's compensation.
Section 9-20-60. No retirement benefit or preretirement death benefit may be paid by the State for service rendered while participating in the optional retirement program. The benefits are payable to optional retirement program participants or their beneficiaries by the designated companies in accordance with the terms of the contracts issued to participants."
B. This section takes effect July 1, 2000.
TO AMEND SECTION 59-149-10, OF THE 1976 CODE, RELATING TO LIFE SCHOLARSHIPS, INCLUDING THE ANNUAL AMOUNTS THEREOF, SO AS TO INCREASE FROM TWO THOUSAND DOLLARS A YEAR TO THREE THOUSAND DOLLARS A YEAR, THE MAXIMUM AMOUNT OF SUCH SCHOLARSHIPS FOR ELIGIBLE STUDENTS ATTENDING FOUR-YEAR PUBLIC OR INDEPENDENT INSTITUTIONS, AND TO INCREASE THE AMOUNT OF SUCH SCHOLARSHIPS THAT ELIGIBLE STUDENTS ATTENDING TWO-YEAR PUBLIC OR INDEPENDENT INSTITUTIONS, INCLUDING STATE TECHNICAL COLLEGES MAY RECEIVE FROM A MAXIMUM OF ONE THOUSAND DOLLARS A YEAR TO THE COST OF TUITION FOR THIRTY CREDIT HOURS A YEAR, AND TO PROVIDE THESE INCREASES BEGIN WITH SCHOOL YEAR 2000-2001.
Section 59-149-10 of the 1976 Code is amended by adding a new subsection (D) to read:
"(D) Beginning with school year 2000-2001, the annual amount of a LIFE Scholarship for eligible resident students attending a four-year public or independent institution as defined herein is increased from the cost of attendance up to a maximum of two thousand dollars a year to the cost of attendance up to a maximum of three thousand dollars a year, and the annual amount of a LIFE Scholarship for eligible resident students attending a two-year public or independent institution as defined herein which includes state technical colleges is increased from the cost of attendance up to a maximum of one thousand dollars a year to the cost of tuition for thirty credit hours a year or its equivalent. Tuition for this purpose means the amount charged for registering for credit hours of instruction and shall not include other fees, charges or costs of textbooks."
Section 59-118-30(1) of the 1976 Code, as last amended by Act 419 of 1998, is further amended to read:
"(1) 'Qualifying college or university' means a state-supported, post-secondary two-year or four-year educational institution institutions including college or university regional campuses offering undergraduate, master, or doctoral degree programs and also includes a technical college under the jurisdiction of the State Board for Technical and Comprehensive Education."
A. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:
"( ) (a) effective January 1, 2005, food items eligible for purchase with United States Department of Agriculture food coupons, but this exemption does not apply for local sales and use taxes except where such taxes specifically exempt these items;
(b) effective January 1, 2001, the governing body of a county by ordinance may exempt items described in subitem (a) of this item from any local sales and use tax imposed in the county which by its terms does not otherwise exempt such items. This local exemption may extend to all or a portion of the local tax."
B. Notwithstanding the rates of tax imposed pursuant to Chapter 36, Title 12 of the 1976 Code, the rate of tax imposed pursuant to that chapter on the gross proceeds of sales, or the sale price of food items eligible for purchase with United States Department of Agriculture food coupons, is four percent for sales from January 1, 2001, through December 31, 2001, three percent for such sales from January 1, 2002, through December 31, 2002, two percent for such sales from January 1, 2003, through December 31, 2003, and one percent for such sales from January 1, 2004, through December 31, 2004. Eighty percent of the revenues from sales taxes raised by the special tax rates provided by this section must be credited to the general fund of this State and used as sales taxes are used, and the remainder must be credited to the Education Improvement Act Fund. Except where otherwise exempt, the local sales and use taxes authorized by law continue to apply to those sales subject to the reduced state rate of tax provided in this section.
A. Section 12-6-520 of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"Section 12-6-520. Each December 15, the department shall cumulatively adjust the brackets in Section 12-6-510 in the same manner that brackets are adjusted in Internal Revenue Code Section (1)(f). However, the adjustment is limited to one-half of the adjustment determined by Internal Revenue Code Section (1)(f), may not exceed four percent a year, and but the rounding amount provided in (1)(f)(6) is ten dollars. The brackets, as adjusted, apply in lieu of those provided in Section 12-6-510 for taxable years beginning in the succeeding calendar year. Inflation adjustments must be made cumulatively to the income tax brackets."
B. This section takes effect upon approval by the Governor and first applies for income tax brackets applicable for taxable year 2000. Notwithstanding the inflation adjustment required pursuant to Section 12-6-520 of the 1976 Code as amended by this section, the adjustment applicable for taxable year 2000 is limited to not less than seventy-five percent nor more than eighty-five percent of the adjustment otherwise required which must be determined based on the certification of the Board of Economic Advisors to the Department of Revenue as to the maximum percentage in that range that does not reduce general fund revenues by more than eighteen million dollars in fiscal year 2000-2001. Notwithstanding the date required for bracket adjustments provided in Section 12-6-520 of the 1976 Code as amended by this section, the adjustment required for taxable year 2000 brackets must be made no later than fifteen days after the effective date of this section.
A. Article 11, Chapter 13, Title 51 of the 1976 Code is amended by adding:
"Section 51-13-765. (A) The Patriot's Point Development Authority may maintain special accounts controlled by the authority and made up of funds received by the authority in the form of federal funds, donations, and grants made available to it. The authority may retain and carry over these funds it has on account from fiscal year to fiscal year. The receipt and expenditure of funds in these accounts must be reported in an annual fiscal audit of the authority. These receipts and expenditures also must be reported to the House Ways and Means Committee and Senate Finance Committee.
(B) All earnings and interest accrued on accounts held by the authority must be retained and expended by the authority to carry out its purpose and mission."
B. This section takes effect July 1, 2000.
A. Section 56-3-910 of the 1976 Code, as amended by Act 148 of 1997, is further amended to read:
"Section 56-3-910. (A) All fees and penalties collected by the department under the provisions of this chapter shall must be placed in the state general fund distributed as provided in subsection (B) of this section except for fees and penalties collected pursuant to Sections 56-3-660 and 56-3-670, all of which must be placed in the state highway account of the South Carolina Transportation Infrastructure Bank.
(B) Beginning in fiscal year 1998-99, one-half of the revenues are remitted to the bank in fiscal year 1998-99, and the entirety of the revenue is remitted to the bank in fiscal year 1999-00 and thereafter. Twenty percent of the fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited to the State Highway Fund of the Department of Transportation and eighty percent to the general fund of the State, beginning in fiscal year 2000-2001.
B. This section takes effect July 1, 2000.
A. Section 56-3-2332(B) of the 1976 Code, as added by Act 155 of 1997, is amended to read:
"(B) The annual registration fee for this plate is six eight hundred ninety-seven eighty dollars and forty-six cents.
(1) The plates issued in connection with an employee benefit program may be used only on vehicles provided for the applicant's employees. In the application, the manufacturer shall notify the department in which county the employee assigned the vehicle resides. Twenty dollars and fifty cents of the fee must be credited to the general fund of the State and six eight hundred seventy-seven fifty-nine dollars and forty-six fifty cents must be remitted to the county noted on the application. Amounts received by a county pursuant to this subsection must be credited to the accounts of taxing entities in the county as if it were a county property tax and are instead of state sales or use taxes. If the employee resides outside this State, the fee must be credited pro rata to all other counties due amounts under this section. The names and addresses of the employees are not required to be submitted to the department, but the department may require the documentation it determines necessary to ensure compliance with the provisions of this section.
(2) The plates issued in connection with testing, distribution, evaluation, and promotion, not to exceed fifty plates, may be used only for those purposes. Twenty dollars and fifty cents of the fee must be credited to the general fund of the State and six eight hundred seventy-seven fifty-nine dollars and forty-six fifty cents must be remitted to the county in which the principal facility of the manufacturer is located. Amounts received by a county pursuant to this subsection must be credited to the accounts of taxing entities in the county as if it were a county property tax and are instead of state sales or use taxes. The department may require the documentation it determines necessary to ensure compliance with the provisions of this subsection."
B. This section takes effect January 1, 2001.
A. Section 1-11-710(A)(3) of the 1976 Code, as added by Act 364 of 1992, is amended to read:
"(3) (a) adjust the plan, benefits, or contributions of any but the health and dental insurance plans, at any time to insure ensure the fiscal stability of the system.;
(b) adjust the health or dental insurance plan, or both, the benefits of, or contributions for these plans to ensure the stability of these plans. When an adjustment requires increased employee contributions or has the effect of reducing benefits, a public hearing must be held on the adjustments and no such adjustments may be made except while the General Assembly is meeting in regular session."
B. The State Budget and Control Board shall make the following adjustments in the state health plan effective January 1, 2001:
(1) all employee-paid premiums are increased by five dollars a month;
(2) individual deductibles in the economy and standard plans are increased by fifty dollars and family deductibles in both plans are increased by one hundred dollars;
(3) the coinsurance amount in the standard plan is revised from fifteen to twenty percent and revised in the economy plan from twenty to twenty-five percent.
All other elements of the plans including, but not limited to, the fifteen hundred dollar "cap" and the elements of the prescription drug benefit must remain unchanged from the manner in which the plans operated on January 1, 2000, except that the "cap" on the prescription drug benefit is reduced from fifteen hundred dollars to one thousand dollars.
DELETED
A. Chapter 30, Title 46 of the 1976 Code is amended by adding:
B. There is established the Joint committee on Tobacco Settlement Fund Health Expenditures consisting of eight members as follows: four members appointed by the President Pro Tempore of the Senate and four members appointed by the Speaker of the House. Any member of the General Assembly appointed shall serve ex officio. The committee shall meet, organize, study, and report its recommendations to the General Assembly on the following issues relating to Tobacco Settlement Fund health expenditures:
(1) the appropriate allocations of these revenues among competing health needs;
(2) whether the stream of tobacco revenues due the state should be "securitized"; and
(3) the best way to appropriate these revenues, whether as part of the annual general appropriations act or by some other separate legislative vehicle.
The committee shall make a final report and recommendations to the General Assembly no later than December 31, 2000. The committee is abolished on the earlier of the date of its report and recommendations or December 31, 2000. Members shall serve without compensation, but may receive the mileage, subsistence, and per diem authorized by law for members of state boards, committees, and commissions to be paid from the approved accounts of their appointing authority. Vacancies must be filled in the manner of original appointment. Expenses of the committee must be paid equally from approved accounts of both houses.
C. Monies deposited and credited to the general fund pursuant to Paragraph 72.73, Part IB, Act 100 of 1999, are deemed to have been credited to the separate and distinct Tobacco Settlement Fund created herein and may not be considered in the sums from which percentage calculations are made and percentage allocations are determined for any other budgetary purpose whatever.
TO AMEND SECTION 12-37-250, AS AMENDED, OF THE 1976 CODE, RELATING TO THE ANNUAL HOMESTEAD EXEMPTION FOR TAXPAYERS SIXTY-FIVE AND OVER OR THOSE WHO ARE TOTALLY AND PERMANENTLY DISABLED OR LEGALLY BLIND, SO AS TO PROVIDE THAT THE DOLLAR AMOUNT OF THE TWENTY THOUSAND DOLLAR HOMESTEAD EXEMPTION SHALL BE ADJUSTED ANNUALLY BEGINNING IN 2000 BY THE COMPTROLLER GENERAL TO REFLECT ANY PERCENTAGE INCREASE IN THE PRIOR YEAR'S CONSUMER PRICE INDEX FOR THE SOUTHEAST REGION AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR.
Section 12-37-250 of the 1976 Code, as last amended by Act 107 of 1997, is further amended by adding a new paragraph at the end:
"The dollar amount of the twenty thousand dollar homestead exemption provided for herein shall be adjusted annually beginning in 2000 by the Comptroller General to reflect any percentage increase in the prior year's consumer price index for the southeast region as published by the United States Department of Labor."
Chapter 40, Title 59 of the 1976 Code is amended to read:
Section 59-40-20. This chapter is enacted to:
(1) improve student learning;
(2) increase learning opportunities for students;
(3) encourage the use of a variety of productive teaching methods;
(4) establish new forms of accountability for schools;
(5) create new professional opportunities for teachers, including the opportunity to be responsible for the learning program at the school site; and
(6) assist South Carolina in reaching academic excellence.
Section 59-40-30. In authorizing charter schools, it is the intent of the General Assembly to create a legitimate avenue for parents, teachers, and community members to take responsible risks and create new, innovative, and more flexible ways of educating all children within the public school system. The General Assembly seeks to create an atmosphere in South Carolina's public school systems where research and development in producing different learning opportunities is actively pursued, and where classroom teachers are given the flexibility to innovate and the responsibility to be accountable. As such, the provisions of this chapter should be interpreted liberally to support the findings and goals of this chapter and to advance a renewed commitment by the State of South Carolina to the mission, goals, and diversity of public education.
Section 59-40-40. As used in this chapter:
(1) A 'charter school' means a public, nonsectarian, nonreligious, nonhome-based, nonprofit corporation forming a school which operates within a public school district, but is accountable to the local school board of trustees of that district, which grants its charter.
(2) A charter school:
(a) is considered a public school and part of the school district in which it is located for the purposes of state law and the state constitution;
(b) is subject to all federal and state laws and constitutional provisions prohibiting discrimination on the basis of disability, race, creed, color, gender, national origin, religion, ancestry, or need for special education services;
(c) must be administered and governed by a governing body in a manner agreed to by the charter school applicant and the sponsor, the governing body to be selected in the manner as provided in Section 59-40-50(B)(8)(9);
(d) shall not charge tuition or other charges of any kind except as may be allowed by the sponsor.
(3) 'Applicant' means the person who desires to form a charter school and files the necessary application therefor with the local school board of trustees. The applicant also must be the person who applies to the Secretary of State to organize the charter school as a nonprofit corporation.
(4) 'Sponsor' means the local school board of trustees established as provided by law, from which the charter school applicant requested its charter, and which granted approval for the charter school's existence.
(5) 'Certified teacher' means a person currently certified by the State of South Carolina to teach in a public elementary or secondary school or who currently meets the qualification outlined in Sections 59-27-10 and 59-25-115.
(6) 'Noncertified teacher' means an individual considered appropriately qualified for the subject matter taught, and who has been approved by the charter committee of the school completed at least one year of study at an accredited college or university.
(7) 'Charter committee' means the governing body of a charter school and also shall be formed by the applicant to govern through the application process and until the election of a board of directors is held. After the election, the board of directors of the corporation which must be organized as the governing body and the charter committee is dissolved.
Section 59-40-50. (A) Except as otherwise provided in this chapter, a charter school is exempt from all provisions of law and regulations applicable to a public school, a school board, or a district, although a charter school may elect to comply with one or more of these provisions of law or regulations.
(B) A charter school shall must:
(1) adhere to the same health, safety, civil rights, and disability rights requirements as are applied to public schools operating in the same school district;
(2) meet, but may exceed, the same minimum student attendance requirements as are applied to public schools operating in the same district;
(3) adhere to the same financial audits, audit procedures, and audit requirements as are applied to public schools operating in the same school district;
(4) be considered a school district for purposes of tort liability under South Carolina law, except that the tort immunity shall does not include acts of intentional or willful racial discrimination by the governing body or employees of the charter school. Employees of charter schools shall must be relieved of personal liability for any tort or contract related to their school to the same extent that employees of traditional public schools in their school district are relieved;
(5) in its discretion hire noncertified teachers in a ratio of up to twenty-five percent of its entire teacher staff; however, if it is a converted charter school, it shall hire in its discretion hire noncertified teachers in a ratio of up to ten percent of its entire teacher staff. However, in either a new or converted charter school, teachers teaching in the core academic areas of English/language arts, mathematics, science, or social studies must be certified in those areas. Part-time noncertified teachers shall be are considered pro rata in calculating this percentage based on the hours which they are expected to teach;
(6) hire in its discretion administrative staff to oversee the daily operation of the school. At least one of the administrative staff must be certified in the field of school administration;
(6)(7) admit all children eligible to attend public school in a school district who are eligible to apply for admission to a charter school operating in that school district, subject to space limitations. However, under no circumstances may a charter school enrollment differ from the racial composition of the school district by more than ten percent. If the number of applications exceeds the capacity of a program, class, grade level, or building, students shall must be accepted by lot, and there is no appeal to the sponsor;
(7)(8) not limit or deny admission or show preference in admission decisions to any individual or group of individuals; provided, however, that a charter school may give enrollment priority to a sibling of a pupil already enrolled, and children of a charter school employee, and children of the charter committee, provided their enrollment does not constitute more than twenty-five percent of the enrollment of the charter school;
(8)(9) elect its governing body board of directors annually. All employees of the charter school and all parents or guardians of students enrolled in the charter school shall be are eligible to participate in the election. Parents or guardians of a student shall have one vote for each student enrolled in the charter school. At all times, the governing body of the charter school shall must include one or more teachers;
(9)(10) be subject to the Freedom of Information Act, including the charter school and its governing body.
(C) (1) If a charter school denies admission to a student, the student may appeal the denial to the school board of trustees. The decision shall be is binding on the student and the charter school.
(2) If a charter school suspends or expels a student, the school district shall have has the authority but not the obligation to refuse admission to the student.
(3) The sponsor shall have has no obligation to provide extracurricular activities or access to facilities of the school district for students enrolled in the charter school.
Section 59-40-60. (A) An approved charter application constitutes an agreement, and the terms shall must be the terms of a contract between the charter school and the sponsor.
(B) The contract between the charter school and the sponsor shall reflect all agreements regarding the release of the charter school from local school district policies.
(C) A material revision of the terms of the contract between the charter school and the approving board may be made only with the approval of both parties.
(D) Except as provided in subsection (F), an applicant who wishes to form a charter school shall:
(1) organize the charter school as a nonprofit corporation under pursuant to the laws of this State;
(2) elect form a charter committee for the charter school which includes one or more teachers;
(3) submit a written charter school application to the local school board of trustees for the school district in which the charter school will is to be located.
(E) A charter committee shall be is responsible for and have has the power to:
(1) submit an application to operate as a charter school, sign a charter school contract, and ensure compliance with all of the requirements for charter schools provided by law;
(2) employ and contract with teachers and nonteaching employees, contract for other services, and develop pay scales, performance criteria, and discharge policies for its employees. All teachers whether certified or noncertified must undergo the background checks and other investigations required for certified teachers as provided by law before they may teach in the charter school; and
(3) decide all other matters related to the operation of the charter school, including budgeting, curriculum, and operating procedures.
(F) The charter school application shall be a proposed contract and shall must include:
(1) the mission statement of the charter school, which must be consistent with the principles of the General Assembly's purposes as set forth in pursuant to Section 59-40-20;
(2) the goals, objectives, and pupil achievement standards to be achieved by the charter school, and a description of the charter school's admission policies and procedures;
(3) evidence that an adequate number of parents, teachers, pupils, or any combination thereof of them support the formation of a charter school;
(4) a description of the charter school's educational program, pupil achievement standards, and curriculum, which must meet or exceed any content standards adopted by the school district in which the charter school is located and must be designed to enable each pupil to achieve these standards;
(5) a description of the charter school's plan for evaluating pupil achievement and progress toward accomplishment of the school's achievement standards in addition to state assessments, the timeline for meeting these standards, and the procedures for taking corrective action in the event if that pupil achievement falls below the standards;
(6) evidence that the plan for the charter school is economically sound, a proposed budget for the term of the charter, a description of the manner in which an annual audit of the financial and administrative operations of the charter school, including any services provided by the school district, is to be conducted;
(7) a description of the governance and operation of the charter school, including the nature and extent of parental, professional educator, and community involvement in the governance and operation of the charter school;
(8) a description of how the charter school plans to ensure that the enrollment of the school is similar to the racial composition of the school district provide assurance that the school does not conflict with any school district desegregation plan or order in effect;
(9) a description of how the charter school plans to meet the transportation needs of its pupils;
(10) a description of the building, facilities, and equipment and how they shall be are obtained;
(11) an explanation of the relationship that shall exist exists between the proposed charter school and its employees, including descriptions of evaluation procedures and evidence that the terms and conditions of employment have been addressed with affected employees;
(12) a description of a reasonable grievance and termination procedure as required by this chapter, including notice and a hearing before the governing body of the charter school. The application shall must state whether or not the provisions of Article 5, Chapter 25 of Title 59 will apply to the employment and dismissal of teachers at the charter school;
(13) a description of student rights and responsibilities, including behavior and discipline standards, and a reasonable hearing procedure, including notice and a hearing before the board of directors of the charter school prior to before expulsion;
(14) an assumption of liability by the charter school for the activities of the charter school and an agreement that the charter school will must indemnify and hold harmless the school district, its servants, agents, and employees, from any and all liability, damage, expense, causes of action, suits, claims, or judgments arising from injury to persons or property or otherwise which arises out of the act, failure to act, or negligence of the charter school, its agents and employees, in connection with or arising out of the activity of the charter school; and
(15) a description of the types and amounts of insurance coverage to be obtained by the charter school.
Section 59-40-70. (A) The local school board shall establish a schedule for receiving applications from charter schools and shall make a copy of any schedule available to all interested parties upon request. If the local school district or board finds determines the charter school application is incomplete or fails to meet the spirit and intent of this chapter, it immediately shall request the necessary information from the charter applicant.
(B) After giving reasonable public notice, the local school board shall hold community meetings in the affected areas or the entire school district to obtain information to assist it in their decision to grant a charter school application. The local school board shall rule on the application for a charter school in a public hearing, upon reasonable public notice, within ninety days after receiving the application. If there is no ruling within ninety days, the application is considered approved.
(C) A local school board of trustees shall only deny an application only if the application does not meet the requirements specified in Section 59-40-50 or 59-40-60, fails to meet the spirit and intent of this chapter, or adversely affects other students in the district. It shall provide, within ten days, a written explanation of the reasons for denial, citing specific provisions of Section 59-40-50 or 59-40-60 that the application violates. This written explanation immediately shall must be sent to the charter committee and filed with the State Board of Education.
(D) If the local school board of trustees denies a charter school application, the charter applicant may amend its application to conform with the reasons for denial and reapply to the local board, which has thirty days to approve or deny the application, or may appeal the denial to the State Board of Education pursuant to Section 59-40-90.
(E) If the local school board approves the application, it becomes the charter school's sponsor and shall sign the approved application which shall constitute constitutes a contract with the charter committee of the charter school. A copy of the charter shall must be filed with the State Board of Education.
Section 59-40-80. A local school board may shall conditionally authorize a charter school before the applicant has secured its space, equipment, facilities, and personnel if the applicant indicates verifies that such authority is necessary for it to meet the requirements of this chapter. Conditional authorization does not give rise to any equitable or other claims based on reliance, notwithstanding any promise, parole, written, or otherwise, contained in the authorization or acceptance of it, whether preceding or following the conditional authorization.
Section 59-40-90. (A) The State Board of Education, upon receipt of a notice of appeal or upon its own motion, shall review a decision of any local school board of trustees concerning charter schools in accordance with the provisions of this section.
(B) A charter applicant who wishes to appeal an adverse decision shall provide the State Board of Education and the local school board of trustees with a notice of appeal within ten days of the local board's decision.
(C) If the notice of appeal or the motion to review by the State Board of Education relates to a local board's decision to deny, refuse to renew, or revoke a charter, the appeal and review process shall must be:
(1) within thirty days after receipt of the notice of appeal or the making of a motion to review by the State Board of Education and after reasonable public notice, the State Board of Education, at a public hearing which may be held in the district where the proposed charter school is located, shall review the decision of the local school board of trustees and make its findings known. The state board may affirm, reverse, or remand the application for action by the local board in accordance with an order of the state board. If the state board remands the application, it shall do so with written instructions for reconsideration. Both the applicant and the local school board shall have the opportunity to communicate with the State Board of Education regarding the written instructions. These instructions shall must include specific recommendations concerning the matters requiring reconsideration;
(2) within thirty days following the remand of a decision to the local board of trustees and with reasonable public notice, the local school board of trustees, at a public hearing, shall reconsider its decision and make a final decision. No further administrative appeal may be taken from this decision. However, any final decision of the local school board of trustees after remand from the state board or a final decision of the state board may be appealed by any party to the circuit court for the county in which the proposed charter school is or was to have located.
Section 59-40-100. (A) An existing public school may be converted into a charter school if two-thirds of the faculty and instructional staff employed at the school and two-thirds of all voting parents or legal guardians of students enrolled in the school agree to the filing of an application with the local school board of trustees for the conversion and formation of that school into a charter school. All parents or legal guardians of students enrolled in the school must be given the opportunity to vote on the conversion. The application shall must be submitted by the principal of that school or his designee who shall must be deemed considered the applicant. The application shall must include all information required of other applications under pursuant to this chapter. The local school board of trustees shall approve or disapprove this application in the same manner it approves or disapproves other applications.
(B) A converted charter school shall offer at least the same grades, or nongraded education appropriate for the same ages and education levels of pupils, as offered by the school immediately before conversion, and also may provide additional grades and further educational offerings.
(C) All students enrolled in the school at the time of conversion must be given priority enrollment.
(D) Teachers and other employees of a converted school who desire to teach or work at the converted school may do so but shall remain employees of the local school district with the same compensation and benefits including any future increases therein. The converted charter school quarterly shall reimburse the local school district for the compensation and employer contribution benefits paid to or on behalf of these teachers and employees. The provisions of Article 5, Chapter 25 of Title 59 will apply to the employment and dismissal of teachers at a converted school.
Section 59-40-110. (A) A charter may be approved or renewed for a period not to exceed three of five school years.
(B) A charter renewal application shall must be submitted to the school's sponsor, and it shall must contain:
(1) a report on the progress of the charter school in achieving the goals, objectives, pupil achievement standards, and other terms of the initially approved charter application; and
(2) a financial statement that discloses the costs of administration, instruction, and other spending categories for the charter school that is understandable to the general public and that will allow allows comparison of these costs to other schools or other comparable organizations, in a format required by the State Board of Education.
(C) A charter may must be revoked or not renewed by the sponsor if it determines that the charter school:
(1) committed a material violation of the conditions, standards, or procedures set forth provided for in the charter application;
(2) failed to meet or make reasonable progress toward pupil achievement standards identified in the charter application;
(3) failed to meet generally accepted standards of fiscal management; or
(4) violated any provision of law from which the charter school was not specifically exempted.
(D) At least sixty days before not renewing or terminating a charter school, the sponsor shall notify in writing the charter school's governing body of the proposed action in writing. The notification shall state the grounds for the proposed action in reasonable detail. Termination must follow the procedure set forth herein provided for in this section.
(E) The charter school's governing body may request in writing a hearing before the sponsor within fourteen days of receiving notice of nonrenewal or termination of the charter. Failure by the school's governing body to make a written request for a hearing within fourteen days shall must be treated as acquiescence to the proposed action. Upon receiving a timely written request for a hearing, the sponsor shall give reasonable notice to the school's governing body of the hearing date. The sponsor shall conduct a hearing before taking final action. The sponsor shall take final action to renew or not renew a charter by the last day of classes in the last school year for which the charter school is authorized.
(F) A decision to revoke or not to renew a charter school may be appealed to the state board pursuant to the provisions of Section 59-40-90.
Section 59-40-120. Upon dissolution of a charter school, its assets may not inure to the benefit of any private person. Any assets obtained through restricted agreements with a donor through awards, grants, or gifts shall must be returned to that entity. All other assets become property of the sponsor.
Section 59-40-130. (A) If an employee of a local school district makes a written request for a leave to be employed at a charter school, the school district shall grant the leave for up to five years as requested by the employee. The school district may require that the request for leave or extension of leave be made by the date under provided for by state law for the return of teachers' contracts. Employees may return to employment with the local school district at its option with the same teaching or administrative contract status as when they left, but without assurance as to the school or supplemental position to which they may be assigned.
(B) During a leave, the employee may continue to accrue benefits and credits in the South Carolina Retirement System by paying the employee contributions based upon the annual salary of the employee, and the charter school shall pay the employer contribution. The South Carolina Retirement System may impose reasonable requirements to administer this section.
(C) The provisions of this section do not apply to teachers and other employees of a converted school whose employment relation shall be are governed by Section 59-40-100(C).
Section 59-40-140. (A) A sponsor shall distribute state, county, and school district funds to a charter school as determined by the following formula: The previous year's audited total general fund expenditures including capital outlay and maintenance, but not including expenditures from bonded indebtedness or debt repayment shall must be divided by the previous year's weighted students, then increased by the Education Finance Act inflation factor, pursuant to Section 59-20-40, for the years following the audited expenditures, then multiplied by the weighted students enrolled in the charter school, which will be subject to adjustment for student attendance and state budget allocations based on the same criteria as the local school district. These amounts must be verified by the State Department of Education before the first disbursement of funds. All state and local funding shall must be distributed by the local school district to the charter school monthly beginning July first following approval of the charter school application.
(B) During the year of the charter school's operation, as received, and to the extent allowed by federal law, a sponsor shall distribute to the charter school federal funds which are allocated to the local school district on the basis of the number of special characteristics of the students attending the charter school. These amounts must be verified by the State Department of Education before the first disbursement of funds.
(C) Notwithstanding subsection (B), the proportionate share of state and federal resources generated by students with disabilities or staff serving them shall must be directed to charter schools. The proportionate share of funds generated under other federal or state categorical aid programs shall must be directed to charter schools serving students eligible for the aid.
(D) All services centrally or otherwise provided by the school district, if any, including, but not limited to, food services, custodial services, maintenance, curriculum, media services, libraries, and warehousing are subject to negotiation between a charter school and the school district.
(E) All awards, grants, or gifts collected by a charter school shall must be retained by the charter school.
(F) The governing body of a charter school is authorized to accept gifts, donations, or grants of any kind made to the charter school and to expend or use the gifts, donations, or grants in accordance with the conditions prescribed by the donor. No gifts or donation shall be a requirement required for admission. However, no gift, donation, or grant may be accepted by the governing board if subject to any condition contrary to law or contrary to the terms of the contract between the charter school and the governing body. All gifts, donations, or grants must be reported to the local school district within thirty days of their receipt by the governing body.
(G) A charter school shall report to its sponsor and the Department of Education any change to information provided under its application. In addition, a charter school shall report at least annually to its sponsor and the department all information required by the sponsor or the department and including, at a minimum, the number of students enrolled in the charter school, the success of students in achieving the specific educational goals for which the charter school was established, and the identity and certification status of the teaching staff.
(H) The sponsor shall provide technical assistance to persons and groups preparing or revising charter applications at no expense.
(I) Charter schools may acquire by gift, devise, purchase, lease, sublease, installment purchase agreement, land contract, option, or by any other means, and hold and own in its own name buildings or other property for school purposes, and interests in it which are necessary or convenient to fulfill its purposes.
(J) Charter schools are exempt from all state and local taxation, except the sales tax, on their earnings and property. Instruments of conveyance to or from a charter school are exempt from all types of taxation of local or state taxes and transfer fees.
Section 59-40-145. A child who resides in a school district other than the one where a charter school is located may attend a charter school outside his district of residence however, the receiving charter school shall have authority to grant or deny permission for the student to attend. If the student transfers to a charter school outside his district of residence, the school district where the child resides shall pay to the charter school where the child is transferring an amount equivalent to the statewide average of the local base student cost multiplied by the appropriate pupil weighting pursuant to Section 59-20-40 of the Education Finance Act. The charter school where the child is transferring shall count the child for all funding sources, both state and federal.
Section 59-40-150. (A) The Department of Education shall disseminate information to the public, directly and through sponsors, on how to form and operate a charter school and how to utilize the offerings of a charter school.
(B) At least annually, the department shall provide upon request a directory of all charter schools authorized under this chapter with information concerning the educational goals of each charter school, the success of each charter school in meeting its educational goals, and procedures to apply for admission to each charter school.
(C) The department shall bear the cost of complying with this section.
Section 59-40-160. (A) The State Board of Education shall compile evaluations of charter schools received from local school boards of trustees. They shall review information regarding the regulations and policies from which charter schools were released to determine if the releases assisted or impeded the charter schools in meeting their stated goals and objectives.
(B) The State Board of Education shall review the implementation and effectiveness of this chapter, review comprehensive reports issued by local school boards concerning successes or failures of charter schools, report to the Governor and General Assembly interim results by July 1, 1998, and issue a final report and recommendations to the Governor and General Assembly during the fifth year after the effective date of this chapter.
(C) In preparing the report required by this section, the State Board of Education shall compare the academic performance of charter school pupils with the performance of ethnically and economically comparable groups of pupils in other public schools who are enrolled in academically comparable courses.
Section 59-40-170. The Department of Education, in conjunction with the Budget and Control Board, shall publish annually make available, upon request, a list of vacant and unused buildings and vacant and unused portions of buildings that are owned by this State or by school districts in this State and that may be suitable for the operation of a charter school. The department shall make the list available to applicants for charter schools and to existing charter schools. The list shall must include the address of each building, a short description of the building, and the name of the owner of the building. Nothing in this section requires the owner of a building on the list to sell or lease the building or a portion of the building to a charter school or to any other school or to any other prospective buyer or tenant. However, if a school district declares a building surplus and chooses to sell or lease the building, a charter school's board of directors or a charter committee operating or applying within the district must be given first refusal to purchase or lease the building under no more than the same terms and conditions it would be offered to the public.
Section 59-40-180. The State Board of Education shall promulgate regulations necessary to implement the provisions of this chapter.
Section 59-40-190. (A) The governing body of a charter school may sue and be sued. The governing body may not levy taxes or issue bonds.
(B) A sponsor is not liable for any of the debts of the charter school.
(C) A sponsor, members of the board of a sponsor, and employees of a sponsor acting in their official capacity are immune from civil or criminal liability with respect to all activities related to a charter school they sponsor. The governing body of a charter school shall obtain at least the amount of and types of insurance required for this purpose."
Section 50-9-510(19) of the 1976 Code, as added by Act 100 of 1999, is further amended by deleting item (19) which reads:
"(19) In addition to the required nonresident hunter's license, a nonresident may purchase a statewide temporary permit for the privilege of hunting big game, including deer, bear, and turkey, for a period of ten consecutive days, at a cost of twenty-five dollars. One dollar of the permit cost may be retained by the agent issuing the permit."
Section 59-31-360 of the 1976 Code is amended to read:
"Section 59-31-360. The State Board of Education shall waive textbook rental charges for grades one kindergarten through twelve of the public schools, to the end that basal textbooks adopted and approved by the board for use in the public schools shall must be supplied to the school children of the State without charge. Title to books so provided shall remain in the State Board of Education. Each school district shall fully utilize all books owned by it to effect the purposes of this section."
The 1976 Code is amended, by adding:
"Section 59-47-120. (A) Teaching or clinical staff employed by the school who attend advanced training paid for by the school must enter a contract with the school to remain in the employment of the school for a minimum of one year beyond completion of the training. If an employee breaches this contract, the employee shall reimburse the school for all expenses incurred by the school in providing this training for the employee.
(B) For purposes of this section, 'advanced training' means an educational course or program as defined by the school in regulation."
A. The 1976 Code is amended by adding:
"Section 59-104-25. (A) For the purposes of awarding Palmetto Fellows Scholarships, the following definitions shall apply:
(1) a 'magnet school' is a public school that:
(a) is attended by students outside their attendance zone who could not attend it if it were not a magnet school; and
(b) emphasizes an academic theme or specialization.
For purposes of the provisions of this section, the eligibility for Palmetto Fellows Scholarships of students of the Governor's School for Science and Mathematics and the Governor's School for Arts and Humanities shall be determined in the manner provided by regulation of the Commission on Higher Education.
(2) 'Open enrollment' means that a school district allows students to enroll at schools not in their attendance zone or does not use attendance zones and allows students or their families to choose the school they attend.
(B) For all students in magnet schools as defined in subsection (A), whenever rank in class is a factor for determining eligibility to receive a Palmetto Fellows Scholarship, the rank in class assigned to each student is the rank in class that student would have had in the high school he or she would have attended if there had been no magnet school. If the school district allows open enrollment for grades ten, eleven, or twelve, the student's rank in class must be computed as if that student had attended the school closest to his or her residence.
(C) Nothing in subsection (B) affects the rank in class of a student for the purposes of determining eligibility for a Palmetto Fellows Scholarship in a nonmagnet school in any school district with magnet schools.
(D) A student attending a magnet school who would have been eligible to receive a Palmetto Fellows Scholarship in the absence of subsections (A) through (C) also is eligible to receive a Palmetto Fellows Scholarship."
A. The 1976 code is amended by adding:
"Section 44-1-115. (A) The Department of Health and Environmental control shall develop a data base into which a parent, legal guardian, or one acting in loco parentis to a child under sixteen years of age may register a written objection with the department prohibiting the department or any other agency or department of the State from providing condoms or other types of contraceptives to their child under sixteen years of age.
The department shall publish and distribute informational brochures to schools, physicians, and health care agencies and facilities which include procedures for registration and shall provide access to this information to any department or agency of the State that provides condoms or other contraceptives to minors."
B. The 1976 code is amended by adding:
"Section 44-1-117. Notwithstanding any other provision of law, the Department of Health and Environmental Control any other state agency or department, or a person acting on behalf of an agency or department may not distribute or use funds appropriated to it for family health and STD/HIV control for the distribution of condoms or other types of contraceptives to a child under sixteen years of age if the child's parent, legal guardian, or one acting in loco parentis has registered an objection with the Department of Health and Environmental Control pursuant to Section 44-1-115."
A. Chapter 3, Title 23 of the 1976 Code is amended by adding:
Section 23-3-1000. The General Assembly finds that:
(1) It is in the interest of the state to facilitate the dissemination of criminal history records from other states for use in South Carolina as authorized by state law.
(2) The National Crime Prevention and Privacy Compact creates a legal framework for the cooperative exchange of criminal history records for noncriminal justice purposes.
(3) The compact provides for the organization of an electronic information-sharing system among the federal government and the states to exchange criminal history records for noncriminal justice purposes authorized by federal or state law, such as background checks for governmental licensing and employment.
(4) Under the compact, the Federal Bureau of Investigation (FBI) and the party states agree to maintain detailed databases of their respective criminal history records, including arrests and dispositions, and to make them available to the federal government and party states for authorized purposes.
(5) The FBI shall manage the federal data facilities that provide a significant part of the infrastructure for the system.
(6) Entering into the compact would facilitate the interstate and federal-state exchange of criminal history information to streamline the processing of background checks for noncriminal justice purposes.
(7) Release and use of information obtained through the system for noncriminal justice purposes would be governed by the laws of the receiving state.
(8) Entering into the compact will provide a mechanism for establishing and enforcing uniform standards for record accuracy and for the confidentiality and privacy interests of record subjects.
Section 23-3-1010. This article may be cited as the 'National Crime Prevention and Privacy Compact Act of 2000'.
Section 23-3-1020. The National Crime Prevention and Privacy Compact is enacted into law by this State and entered into with all jurisdictions legally joining in the compact in the form substantially as set forth in this section.
As used in this compact, the following definitions apply:
(1) 'Attorney General' means the Attorney General of the United States.
(2) 'Compact officer' means:
(a) with respect to the federal government, an official so designated by the director of the FBI; and
(b) with respect to a party state, the chief administrator of the state's criminal history record repository or a designee of the chief administrator who is a regular full-time employee of the repository.
(3) 'Council' means the compact council established under Article VI.
(4) 'Criminal history record repository' means the state agency designated by the governor or other appropriate executive official or the legislature of a state to perform centralized recordkeeping functions for criminal history records and services in the State. The South Carolina Criminal History Record Repository is a component of the State Law Enforcement Division.
(5) (a) 'Criminal history records' means information collected by criminal justice agencies on individuals consisting of identifiable descriptions and notations of arrests, detentions, indictments, or other formal criminal charges and any disposition arising therefrom, including acquittal, sentencing, correctional supervision, or release.
(b) The term does not include identification information such as fingerprint records if the information does not indicate involvement of the individual with the criminal justice system.
(6) 'Criminal justice' includes activities relating to the detection, apprehension, detention, pretrial release, post trial release, prosecution, adjudication, correctional supervision, or rehabilitation of accused persons or criminal offenders. The administration of criminal justice includes criminal identification activities and the collection, storage, and dissemination of criminal history records.
(7) (a) 'Criminal justice agency' means:
(i) courts; and
(ii) a governmental agency or any subunit of an agency that performs the administration of criminal justice pursuant to a statute or executive order and allocates a substantial part of its annual budget to the administration of criminal justice.
(b) The term includes federal and state inspector general offices.
(8) 'Criminal justice services' means services provided by the FBI to criminal justice agencies in response to a request for information about a particular individual or as an update to information previously provided for criminal justice purposes.
(9) 'Direct access' means access to the national identification index by computer terminal or other automated means not requiring the assistance of or intervention by any other party or agency.
(10) 'Executive order' means an order of the President of the United States or the chief executive officer of a state that has the force of law and that is promulgated in accordance with applicable law.
(11) 'FBI' means the Federal Bureau of Investigation.
(12) (a) 'III system' means the interstate identification index system, which is the cooperative federal-state system for the exchange of criminal history records.
(b) The term includes the national identification index, the national fingerprint file, and to the extent of their participation in the system, the criminal history record repositories of the states and the FBI.
(13) 'National fingerprint file' means a database of fingerprints or of other uniquely personal identifying information that relates to an arrested or charged individual and that is maintained by the FBI to provide positive identification of record subjects indexed in the III system.
(14) 'National identification index' means an index maintained by the FBI consisting of names, identifying numbers, and other descriptive information relating to record subjects about whom there are criminal history records in the III system.
(15) 'National indices' means the national identification index and the national fingerprint file.
(16) 'Noncriminal justice purposes' means uses of criminal history records for purposes authorized by federal or state law other than purposes relating to criminal justice activities, including employment suitability, licensing determinations, immigration and naturalization matters, and national security clearances.
(17) 'Nonparty state' means a state that has not ratified this compact.
(18) 'Party state' means a state that has ratified this compact.
(19) 'Positive identification' means a determination, based upon a comparison of fingerprints or other equally reliable biometric identification techniques, that the subject of a record search is the same person as the subject of a criminal history record or records indexed in the III system. Identifications based solely upon a comparison of subjects names or other nonunique identification characteristics or numbers, or combinations thereof, does not constitute positive identification.
(20) 'Sealed record information' means:
(a) with respect to adults, that portion of a record that is:
(i) not available for criminal justice uses;
(ii) not supported by fingerprints or other accepted means of positive identification; or
(iii) subject to restrictions on dissemination for noncriminal justice purposes pursuant to a court order related to a particular subject or pursuant to a federal or state statute that requires action on a sealing petition filed by a particular record subject; and
(b) with respect to juveniles, whatever each state determines is a sealed record under its own law and procedure.
(21) 'State' means any state, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.
The purposes of this compact are to:
(1) provide a legal framework for the establishment of a cooperative federal-state system for the interstate and federal-state exchange of criminal history records for noncriminal justice uses;
(2) require the FBI to permit use of the national identification index and the national fingerprint file by each party state and to provide, in a timely fashion, federal and state criminal history records to requesting states, in accordance with the terms of this compact and with rules, procedures, and standards established by the council under Article VI;
(3) require party states to provide information and records for the national identification index and the national fingerprint file and to provide criminal history records, in a timely fashion, to criminal history record repositories of other states and the federal government for noncriminal justice purposes, in accordance with the terms of this compact and with rules, procedures, and standards established by the council under Article VI;
(4) provide for the establishment of a council to monitor III system operations and to prescribe system rules and procedures for the effective and proper operation of the III system for noncriminal justice purposes; and
(5) require the FBI and each party state to adhere to III system standards concerning record dissemination and use, response times, system security, data quality, and other duly established standards, including those that enhance the accuracy and privacy of such records.
(1) The director of the FBI shall:
(a) appoint an FBI compact officer who shall:
(i) administer this compact within the Department of Justice and among federal agencies and other agencies and organizations that submit search requests to the FBI pursuant to Article V(3);
(ii) ensure that compact provisions and rules, procedures, and standards prescribed by the council under Article VI are complied with by the Department of Justice and the federal agencies and other agencies and organizations referred to in subsection (1)(a)(i) of this Article III; and
(iii) regulate the use of records received by means of the III system from party states when such records are supplied by the FBI directly to other federal agencies;
(b) provide to federal agencies and to state criminal history record repositories criminal history records maintained in its database for the noncriminal justice purposes described in Article IV, including:
(i) information from nonparty states; and
(ii) information from party states that is available from the FBI through the III system, but is not available from the party state through the III system;
(c) provide a telecommunications network and maintain centralized facilities for the exchange of criminal history records for both criminal justice purposes and the noncriminal justice purposes described in Article IV and ensure that the exchange of the records for criminal justice purposes has priority over exchange for noncriminal justice purposes; and
(d) modify or enter into user agreements with nonparty state criminal history record repositories to require them to establish record request procedures conforming to those prescribed in Article V.
(2) Each party state shall:
(a) appoint a compact officer who shall:
(i) administer this compact within that state;
(ii) ensure that compact provisions and rules, procedures, and standards established by the council under Article VI are complied with in the state; and
(iii) regulate the in-state use of records received by means of the III system from the FBI or from other party states;
(b) establish and maintain a criminal history record repository, which shall provide:
(i) information and records for the national identification index and the national fingerprint file; and
(ii) the state's III system-indexed criminal history records for noncriminal justice purposes described in Article IV;
(c) participate in the national fingerprint file; and
(d) provide and maintain telecommunications links and related equipment necessary to support the criminal justice services set forth in this compact.
(3) In carrying out their responsibilities under this compact, the FBI and each party state shall comply with III system rules, procedures, and standards duly established by the council concerning record dissemination and use, response times, data quality, system security, accuracy, privacy protection, and other aspects of III system operation.
(4) (a) Use of the III system for noncriminal justice purposes authorized in this compact must be managed so as not to diminish the level of services provided in support of criminal justice purposes.
(b) Administration of compact provisions may not reduce the level of service available to authorized noncriminal justice users on the effective date of this compact.
(1) To the extent authorized by Section 552a of Title 5, United States Code (commonly known as the Privacy Act of 1974), the FBI shall provide on request criminal history records, excluding sealed record information, to state criminal history record repositories for noncriminal justice purposes allowed by federal statute, federal executive order, or a state statute that has been approved by the Attorney General to ensure that the state statute explicitly authorizes national indices checks.
(2) The FBI, to the extent authorized by Section 552a of Title 5, United States Code (commonly known as the Privacy Act of 1974), and state criminal history record repositories shall provide criminal history records, excluding sealed record information, to criminal justice agencies and other governmental or nongovernmental agencies for noncriminal justice purposes allowed by federal statute, federal executive order, or a state statute that has been approved by the Attorney General to ensure that the state statute explicitly authorizes national indices checks.
(3) Any record obtained under this compact may be used only for the official purposes for which the record was requested. Each compact officer shall establish procedures, consistent with this compact and with rules, procedures, and standards established by the council under Article VI, which procedures shall protect the accuracy and privacy of the records and shall:
(a) ensure that records obtained under this compact are used only by authorized officials for authorized purposes;
(b) require that subsequent record checks are requested to obtain current information whenever a new need arises; and
(c) ensure that record entries that may not legally be used for a particular noncriminal justice purpose are deleted from the response and, if no information authorized for release remains, an appropriate 'no record' response is communicated to the requesting official.
(1) Subject fingerprints or other approved forms of positive identification must be submitted with all requests for criminal history record checks for noncriminal justice purposes.
(2) Each request for a criminal history record check utilizing the national indices made under any approved state statute must be submitted through that state's criminal history record repository. A state criminal history record repository shall process an interstate request for noncriminal justice purposes through the national indices only if the request is transmitted through another state criminal history record repository or the FBI.
(3) Each request for criminal history record checks utilizing the national indices made under federal authority must be submitted through the FBI or, if the state criminal history record repository consents to process fingerprint submissions, through the criminal history record repository in the state in which the request originated. Direct access to the national identification index by entities other than the FBI and state criminal history records repositories may not be permitted for noncriminal justice purposes.
(4) A state criminal history record repository or the FBI:
(a) may charge a fee, in accordance with applicable law, for handling a request involving fingerprint processing for noncriminal justice purposes; and
(b) may not charge a fee for providing criminal history records in response to an electronic request for a record that does not involve a request to process fingerprints.
(5) (a) If a state criminal history record repository cannot positively identify the subject of a record request made for noncriminal justice purposes, the request, together with fingerprints or other approved identifying information, must be forwarded to the FBI for a search of the national indices.
(b) If, with respect to a request forwarded by a state criminal history record repository under subsection (5)(a), the FBI positively identifies the subject as having a III system-indexed record or records:
(i) the FBI shall so advise the state criminal history record repository; and
(ii) the state criminal history record repository is entitled to obtain the additional criminal history record information from the FBI or other state criminal history record repositories.
(1) (a) There is established a council to be known as the compact council, which has the authority to promulgate rules and procedures governing the use of the III system for noncriminal justice purposes, not to conflict with FBI administration of the III system for criminal justice purposes.
(b) The council shall:
(i) continue in existence as long as this compact remains in effect;
(ii) be located, for administrative purposes, within the FBI; and
(iii) be organized and hold its first meeting as soon as practicable after the effective date of this compact.
(2) The council must be composed of fifteen members, each of whom must be appointed by the Attorney General, as follows:
(a) nine members, each of whom shall serve a two-year term, who must be selected from among the compact officers of party states based on the recommendation of the compact officers of all party states, except that in the absence of the requisite number of compact officers available to serve, the chief administrators of the criminal history record repositories of nonparty states must be eligible to serve on an interim basis;
(b) two at-large members, nominated by the director of the FBI, each of whom shall serve a three-year term, of whom:
(i) one must be a representative of the criminal justice agencies of the federal government and may not be an employee of the FBI; and
(ii) one must be a representative of the noncriminal justice agencies of the federal government;
(c) two at-large members, nominated by the chairman of the council once the chairman is elected pursuant to subsection (3) of this Article VI, each of whom shall serve a three-year term, of whom:
(i) one must be a representative of state or local criminal justice agencies; and
(ii) one must be a representative of state or local noncriminal justice agencies;
(d) one member who shall serve a three-year term and who shall simultaneously be a member of the FBI's advisory policy board on criminal justice information services, nominated by the membership of that policy board;
(e) one member, nominated by the director of the FBI, who shall serve a three-year term and who must be an employee of the FBI.
(3) (a) From its membership, the council shall elect a chairman and a vice chairman of the council. Both the chairman and vice chairman of the council:
(i) must be a compact officer, unless there is no compact officer on the council who is willing to serve, in which case the chairman may be an at-large member; and
(ii) shall serve two-year terms and may be reelected to only one additional two-year term.
(b) The vice chairman of the council shall serve as the chairman of the council in the absence of the chairman.
(4) (a) The council shall meet at least once each year at the call of the chairman. Each meeting of the council must be open to the public. The council shall provide prior public notice in the Federal Register of each meeting of the council, including the matters to be addressed at the meeting.
(b) A majority of the council or any committee of the council shall constitute a quorum of the council or of a committee, respectively, for the conduct of business. A lesser number may meet to hold hearings, take testimony, or conduct any business not requiring a vote.
(5) The council shall make available for public inspection and copying at the council office within the FBI and shall publish in the federal register any rules, procedures, or standards established by the council.
(6) The council may request from the FBI reports, studies, statistics, or other information or materials that the council determines to be necessary to enable the council to perform its duties under this compact. The FBI, to the extent authorized by law, may provide assistance or information upon a request.
(7) The chairman may establish committees as necessary to carry out this compact and may prescribe their membership, responsibilities, and duration.
This compact takes effect upon being entered into by two or more states as between those states and the federal government. When additional states subsequently enter into this compact, it becomes effective among those states and the federal government and each party state that has previously ratified it. When ratified, this compact has the full force and effect of law within the ratifying jurisdictions. The form of ratification must be in accordance with the laws of the executing state.
(1) Administration of this compact may not interfere with the management and control of the director of the FBI over the FBI's collection and dissemination of criminal history records and the advisory function of the FBI's advisory policy board chartered under the Federal Advisory Committee Act (5 U.S.C. App.) for all purposes other than noncriminal justice.
(2) Nothing in this compact may require the FBI to obligate or expend funds beyond those appropriated to the FBI.
(3) Nothing in this compact may diminish or lessen the obligations, responsibilities, and authorities of any state, whether a party state or a nonparty state, or of any criminal history record repository or other subdivision or component thereof, under the Departments of State, Justice, and Commerce, the Judiciary, and Related Agencies Appropriation Act, 1973 (Public Law 92-544), or regulations and guidelines promulgated thereunder, including the rules and procedures promulgated by the council under Article VI(1), regarding the use and dissemination of criminal history records and information.
(1) This compact shall bind each party state until renounced by the party state.
(2) Any renunciation of this compact by a party state must:
(a) be effected in the same manner by which the party state ratified this compact; and
(b) become effective one hundred eighty days after written notice of renunciation is provided by the party state to each other party state and to the federal government.
The provisions of this compact must be severable. If any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any participating state or to the Constitution of the United States or if the applicability of any phrase, clause, sentence, or provision of this compact to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability of the remainder of the compact to any government, agency, person, or circumstance may not be affected by the severability. If a portion of this compact is held contrary to the constitution of any party state, all other portions of this compact must remain in full force and effect as to the remaining party states and in full force and effect as to the party state affected, as to all other provisions.
(1) The council:
(a) has initial authority to make determinations with respect to any dispute regarding:
(i) interpretation of this compact;
(ii) any rule or standard established by the council pursuant to Article VI; and
(iii) any dispute or controversy between any parties to this compact; and
(b) shall hold a hearing concerning any dispute described in subsection (1)(a) at a regularly scheduled meeting of the council and only render a decision based upon a majority vote of the members of the council. The decision must be published pursuant to the requirements of Article VI(5).
(2) The FBI shall exercise immediate and necessary action to preserve the integrity of the III system, to maintain system policy and standards, to protect the accuracy and privacy of records, and to prevent abuses until the council holds a hearing on the matters.
(3) The FBI or a party state may appeal any decision of the council to the Attorney General and after that appeal may file suit in the appropriate district court of the United States that has original jurisdiction of all cases or controversies arising under this compact. Any suit arising under this compact and initiated in a state court must be removed to the appropriate district court of the United States in the manner provided by Section 1446 of Title 28, United States Code, or other statutory authority."
B. Monies appropriated in this year's Appropriations Act to the State Law Enforcement Division in Part IA, Section 56B on line 8, page 345, under "C. Crime Information Systems, Other Operating Expenses" must be used to implement the provisions of this section.
The 1976 Code is amended by adding:
"Section 9-9-51. Members of the General Assembly retirement system may receive additional credited service for service in the selected reserve of any reserve components of the armed forces of the United States in the same manner and under the same terms and conditions such members may receive additional credited service for service in the national guard as provided by this chapter."
Section 48-20-240 of the 1976 Code, as added by Act 454 of 1990, is amended to read:
"Section 48-20-240. All fees and civil penalties collected under the provisions of this chapter must be deposited in the general fund through the State Treasurer, except that the Department of Health and Environmental Control is authorized to use funds collected from mining permit application fees, mining permit conversion fees, substantial modification fees, permit transfer fees, certificate of exploration fees, and annual mine operator fees for environmental education programs related to mining activities. The Department may use these funds to provide on-site environmental education assistance to small mine operators and mining education materials to groups and organizations. The Department's total allocation in the annual state general appropriations act must be reduced by an amount corresponding to the amount of fees the Department uses to fund environmental education programs related to mining activities."
The 1976 Code is amended by adding:
"Section 48-23-97. An employee of the State Forestry Commission must be allowed to attend smokejumper school if he applies for annual leave or takes a leave of absence to attend the school.
The 1976 Code is amended by adding:
"Section 1-1-1035. No state funds or Medicaid funds shall be expended to perform abortions, except for those abortions authorized by federal law under the Medicaid program."
The 1976 Code is amended by adding:
"Section 8-23-115. (A) As an additional benefit for state employees participating in the deferred compensation plan, the deferred compensation commission shall ensure that contracts entered into with third party vendors include provisions that direct the vendor to provide consultative services for plan participants. The vendor must make available for consultation individuals who are registered with the State of South Carolina as broker-dealer agents, investment advisors, or investment advisor representatives, or who are exempt from state registration.
(B) No charge for providing the consultative services required by the provisions of subsection (A) may be made to plan participants but must be absorbed from funds appropriated for the retirement system equity panel in the Budget and Control Board Retirement Division section of the annual general appropriations bill."
A. Chapter 30, Title 46 of the 1976 Code is amended by adding:
Section 46-30-610. (A) There is established in the State Treasury a fund separate and distinct from the general fund of the State and all other funds entitled the South Carolina Tobacco Health Care Trust Fund. For fiscal year 2000-2001, monies in the fund will be expended for health-related expenditures as provided in the 2000-2001 General Appropriations Act. Beginning with Fiscal Year 2001-2002, monies received from the Tobacco Settlement Fund for health care must be deposited in the Health Care Trust Fund for health-related expenditures must be expended by the General Assembly as follows: fifty percent of new funds and twenty-five percent of the interest of that portion accrued shall be expended on tobacco education and tobacco health care related issues and the remainder shall remain in trust.
(B) Monies deposited and credited to the general fund pursuant to Paragraph 72.73, Part IB, Act 100 of 1999, are deemed to have been credited to the Tobacco Health Care Trust Fund created herein and may not be considered in the sums from which percentage calculations are made and percentage allocations are determined for any other budgetary purpose whatever."
B. This section takes effect July 1, 2000.
A. Chapter 15, Title 2 of the 1976 Code is amended by adding:
"Section 2-15-130. Beginning in calendar year 2000, and every two years after that, the Legislative Audit Council shall prepare and conduct a comprehensive audit of the state's Medicaid program including all Medicaid services offered by agencies, providers, and other entities participating in the Medicaid program. The audit must assess their efforts to combat fraud and abuse and the resulting audit report shall recommend ways for the Department of Health and Human Services to increase the efficiency of the state's matching funds and of the products and services offered by the department. The audit report must be submitted to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee by the first Tuesday in January of the year following the audit."
B. This section takes effect July 1, 2000.
A. Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:
"Section 9-1-1615. All retirement allowances are payable in monthly installments. Upon the death of a retired member, the retirement allowance for the month the retired member died, if not previously paid, must be paid to the member's designated beneficiary, if the beneficiary is living at the time of the member's death, otherwise to the member's estate. If the retired member elected a survivor option pursuant to the optional forms of allowances in Section 9-1-1620, any allowance payable to a survivor beneficiary commences in the month after the death of the retired member."
B. Section 9-1-1770 of the 1976 Code, as last amended by Act 458 of 1996, is further amended by adding a new undesignated paragraph at the end to read:
"Upon the death of a retired member after June 30, 2000, the life insurance benefit otherwise due the member's beneficiary, beneficiaries, or estate under the above paragraph is increased as follows: one thousand dollars is increased to two thousand dollars; two thousand dollars is increased to four thousand dollars; and three thousand dollars is increased to six thousand dollars."
C. Section 9-8-80 of the 1976 Code is amended to read:
"Section 9-8-80. All retirement allowances shall be are payable in monthly installments ceasing with the last payment prior to death except for the spouse entitlement. If a member of the System has elected the optional form of allowance those provisions shall apply. Upon the death of a retired member, the retirement allowance for the month the retired member died, if not previously paid, must be paid to the member's spouse, or if the member designated a nonspouse beneficiary or beneficiaries, then to the nonspouse beneficiary or beneficiaries living at the time of the member's death, otherwise to the estate of the member. A spouse's entitlement to a benefit pursuant to Section 9-8-110 commences in the month after the retired member's death. If the retired member elected a survivor option pursuant to the optional retirement allowances in Section 9-8-70, any allowance payable to a survivor beneficiary or beneficiaries commences in the month after the death of the retired member."
D. Section 9-9-80 of the 1976 Code is amended to read:
"Section 9-9-80. All retirement allowances shall be are payable in monthly installments ceasing with the last payment prior to death; provided, that if a member of the System has elected an optional allowance the provisions thereof shall apply. Upon the death of a retired member, the retirement allowance for the month the retired member died, if not previously paid, must be paid to the member's designated beneficiary, if the beneficiary is living at the time of the member's death, otherwise to the estate of the member. If the retired member elected a survivor option pursuant to the optional forms of allowances in Section 9-9-70, any allowance payable to a survivor beneficiary commences in the month after the death of the retired member."
E. The last paragraph of Section 9-11-120 of the 1976 Code, as amended by Act 170 of 1991, is further amended to read:
"Upon the death of a retired member on or after July 1, 1985 2000, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death, otherwise to the retired member's estate, a death life insurance benefit of two thousand dollars if the retired member had ten years of creditable service but less than twenty years, three four thousand dollars if the retired member had twenty years of creditable service but less than thirty twenty-five, and four six thousand dollars if the retired member had at least thirty twenty-five years of creditable service at the time of retirement, provided if the retired member's most recent employer prior to retirement is covered by the Group Life Insurance Program."
F. Section 9-11-160 of the 1976 Code is amended to read:
"Section 9-11-160. All retirement allowances shall be are payable in monthly installments ceasing with the last payment prior to death, provided that if a member has elected an optional allowance the provisions thereof shall apply. Upon the death of a retired member, the retirement allowance for the month the retired member died, if not previously paid, must be paid to the member's designated beneficiary, if the beneficiary is living at the time of the member's death, otherwise to the member's estate. If the retired member elected a survivor option pursuant to the optional forms of allowances in Section 9-11-150, any allowance payable to a survivor beneficiary commences in the month after the death of the retired member."
G. This section takes effect July 1, 2000.
A. This section may be cited as the South Carolina Capital Gain Holding Period Reform Act.
B. Section 12-6-1150 of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"Section 12-6-1150. (A) Individuals, estates, and trusts are allowed a deduction from South Carolina taxable income equal to twenty-nine forty-four percent of net capital gain recognized in this State during a taxable years year beginning in 1991, 1992, 1993, or 1994 and forty-four percent for taxable years beginning after 1994. In the case of estates and trusts, the deduction is applicable only to income taxed to the estate or trust or individual beneficiaries and not income passed through to nonindividual beneficiaries.
(B) (1) South Carolina income includes capital gains and losses from partnerships and 'S' Corporations.
(2) Net capital gain is as defined in the Internal Revenue Code, as amended through December 31, 1988, except that the required holding period is two or more years Section 1222 and related sections."
C. This section takes effect upon approval by the Governor and applies for taxable years beginning after 1999.
A. This section may be cited as the "South Carolina Conservation Incentives Act".
B. The General Assembly finds that South Carolina, from the mountains to the sea, is blessed with some of the most beautiful and pristine natural areas in North America. These diverse and ecologically significant areas warrant creative conservation initiatives if they are to be preserved for the enjoyment and benefit of future generations, and if traditional uses of undeveloped land such as wildlife habitat management, farming, hunting, fishing, and forestry are to be preserved. Absent such initiatives, there is danger that these natural areas and their traditional uses will be lost forever to the pressures of development and urbanization.
The General Assembly further finds that paying deference to property rights while conserving these natural areas is a laudable goal, and that traditional land use planning and regulatory techniques have limited effectiveness in preserving large tracts of undeveloped land. By enacting the "South Carolina Conservation Incentives Act", it is the intent of the General Assembly to provide an income tax credit incentive for landowners to voluntarily convey lands or conservation easements to qualified conservation organizations. Such an incentive for the voluntary conveyance of lands or conservation easements will protect and preserve natural areas and their traditional uses while paying appropriate deference to property rights, expending no state funds, and keeping property in the private sector and on property tax rolls.
C. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3515. (A) A taxpayer who has qualified for and claimed on the taxpayer's federal income tax return a charitable deduction for a gift of land for conservation or for a qualified conservation contribution donated on or after May 31, 2001, on a qualified real property interest located in this State may elect to claim a credit against a tax imposed by this chapter for the applicable tax year in an amount equal to twenty-five percent of the total amount of the deduction attributable to the gift of land for conservation or to the qualified real property interest located in this State; provided, however, that the credit is subject to the caps provided in subsection (C). If the amount of the credit exceeds the taxpayer's tax liability under this chapter for the taxable year, or if it exceeds the maximum credit that may be used in any particular taxable year as provided in subsection (C)(2), the excess credit may be carried forward to succeeding taxable years until all the credit is claimed. In addition to the carry forward of unused credit, unused credit may be transferred, devised, or distributed, with or without consideration, by an individual, partnership, limited liability company, corporation, trust, or estate. To be effectual, such a transfer, devise, or distribution requires written notification to and approval by the department with the unused credit maintaining all its original attributes in the hands of the recipient. With regard to the sale or exchange of a credit allowed under this section, general income tax principles apply for purposes of the state income tax. In the hands of the original donor of a qualified conservation contribution of a qualified real property interest, and of any subsequent transferee, devisee, or distributee, the credit allowed by this section that may be used to offset state income tax liability in any one taxable year is limited to an amount that, when combined with all other state income tax credits of the taxpayer, does not exceed the taxpayer's total state income tax liability for the taxable year. The fair market value of qualified donations made pursuant to this section must be substantiated by a 'qualified appraisal' prepared by a 'qualified appraiser' as those terms are defined under applicable federal law and regulations applicable to charitable contributions.
(B) (1) For purposes of this section:
(a) 'Qualified conservation contribution' and a 'qualified real property interest' are defined as provided in Internal Revenue Code Section 170(h);
(b) 'Gift of land for conservation' means a charitable contribution of fee simple title to real property conveyed for conservation purposes as defined in Internal Revenue Code Section 170(h)(4)(A) to a qualified conservation organization as described in Internal Revenue Code Section 170(h)(3).
(2) Notwithstanding the provisions of Internal Revenue Code Section 170(h) and applicable regulations pertaining to forestry and silvaculture practices, a taxpayer is not disqualified for the tax credit allowed in this section because of silvacultural and forestry practices permitted by or undertaken pursuant to a conservation contribution on a real property interest if:
(a) the forestry and silvacultural practices permitted by or undertaken pursuant to the conservation contribution conform to Best Management Practices established by the South Carolina Forestry Commission existing either at the time the conservation contribution is made, or at the time a particular forestry or silvacultural practice is undertaken;
(b) the conservation contribution on a real property interest in all other respects conforms to the requirements of Internal Revenue Code Section 170(h) and applicable regulations for a 'qualified conservation contribution' on a 'qualified real property interest'; and
(c) the taxpayer provides the Department of Revenue with the information the department considers necessary to determine that the taxpayer would otherwise be eligible for the deduction allowed under Section 170(h).
The amount of the credit allowable under this item is equal to twenty-five percent of the deduction that would otherwise be allowable under Section 170(h) but for the silvacultural and forestry activities performed on the real property interest, subject to the same conditions and limitations as the credit allowed by this section, not including the add-back of the deduction.
(C) (1) The credit provided for in this section may not exceed two hundred fifty dollars per acre of property to which the qualified conservation contribution applies. For the purpose of calculating the per acre tax credit cap of this subsection, all upland and wetland acreage subject to the qualified conservation contribution shall be taken into account, except for property lying within the intertidal zone. All other wetland acreage subject to the qualified conservation contribution including, but not limited to, ponds, wetland impoundments, hardwood bottomlands, and Carolina Bays shall be taken into account when calculating the two hundred fifty dollar per acre tax credit cap.
(2) Regardless of the amount of the credit allowed by this section, the total credit a taxpayer may use under this section for any particular taxable year may not exceed fifty-two thousand five hundred dollars.
(3) For purposes of applying the per acre limitation and per taxpayer limitation on the credit allowed by this section, the attribution rules of Section 267 of the Internal Revenue Code apply.
(D) The South Carolina Department of Revenue shall report to the Governor, the House Ways and Means Committee, and Senate Finance Committee the activity generated on taxable year 2001 state income tax returns by the credit allowed by this item."
D. Chapter 3, Title 50 of the 1976 Code is amended by adding:
Section 50-3-1110. There is created in the state treasury a fund separate and distinct from the general fund of the State and all other funds styled the 'Conservation Grant Fund'. The income and principal of the fund must be used only to stimulate the use of conservation easements and fee simple gifts of land for conservation to improve the capacity of private nonprofit land trusts successfully to accomplish conservation projects and to provide an opportunity to leverage private and public monies for conservation easements.
Section 50-3-1120. The board of the Department of Natural Resources serves ex officio as the Conservation Grant Fund Board with full authority over the administration of the fund.
Section 50-3-1130. The Conservation Grant Fund shall consist of any monies appropriated to it by the General Assembly and other monies received from public or private sources.
Section 50-3-1140. In order for real property to be the subject of a grant under this article, the land must qualify for the tax credit allowed pursuant to Section 12-6-3515.
Section 50-3-1150. (A) Revenues in the Conservation Grant Fund may be used by the department only to:
(1) defray the administrative costs of the department in administering the grant purpose provided for by this article;
(2) provide education on conservation easements and fee simple gifts of land for conservation, including information material intended for landowners and education for staff and volunteers; and
(3) make conservation grants.
(B) A grant from the Conservation Grant Fund may be used only to pay for one or more of the following costs:
(1) reimbursement for total or partial transaction costs for donations from individuals or corporations that otherwise would not be made because of insufficient financial revenues;
(2) management support, including initial baseline inventory and planning;
(3) monitoring compliance with conservation easements;
(4) education on conservation easements and fee simple gifts of land for conservation, including information materials intended for landowners, and education for staff and volunteers.
(C) Fund proceeds may not be used to pay the purchase price of any interest in real property.
Section 50-3-1160. The board shall establish the procedures and criteria for awarding grants under this article. The criteria shall focus grants on those areas, approaches, and techniques that are likely to provide the optimum positive effect on conservation. The board shall make recommendations to the General Assembly on the award of grants. Upon approval by the General Assembly by concurrent resolution, the board shall award the grants and provide public notice of the award."
E. Section 62-3-715 of the 1976 Code, as last amended by Act 521 of 1990, is further amended by adding an item appropriately numbered at the end to read:
"( ) donate a qualified conservation easement or fee simple gift of land for conservation on any real property of the decedent in order to obtain the benefit of the estate tax exclusion allowed under Internal Revenue Code Section 2031(c) as defined in Section 12-6-40(A), and the state income tax credit allowed under Section 12-6-3515, if the personal representative has the written consent of all of the heirs, beneficiaries, and devises whose interests are affected by the donation. Upon petition of the personal representative, the circuit court may consent on behalf of any unborn, unascertained, or incapacitated heirs, beneficiaries, or devises whose interests are affected by the donation after determining that the donation of the qualified real property interest shall not adversely affect them or would most likely be agreed to by them if they were before the court and capable of consenting. A guardian ad litem must be appointed to represent the interest of any unborn, unascertained, or incapacitated persons. Similarly, and for the same purposes and under the same conditions, mutatis mutandis, a trustee may make such a donation for the settlor."
F. Except where otherwise stated, this section takes effect May 31, 2001.
All Acts or parts of Acts inconsistent with any of the provisions of Part I of this Act are hereby suspended for Fiscal Year 2000-2001.
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 its approval by the Governor.
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