South Carolina General Assembly
106th Session, 1985-1986

Continuation of Appropriations Act

  (D) The State Health and Human Services Finance Commission
shall prepare emergency regulations to implement the Medically
Indigent Assistance Fund on January 1, 1986, and shall submit
permanent regulations to the General Assembly no later than
January 1, 1986. The regulations may be revised on the basis of
data gathered by the commission pursuant to subsection (A) of
Section 44-6-170 and shall include, but not be limited to:
   (1) the method of administration, including the specific
procedures and materials to be used statewide in determining
eligibility for the fund. 
     (a) In nonemergency cases, the patient shall submit the
necessary documentation to his county of residence or its
designee to determine eligibility prior to admission to the
hospital.
     (b) In case of an emergency, the hospital shall admit the
patient pursuant to Section 44-7-355. If a hospital determines
that the patient could be eligible for coverage by the fund, it
shall forward the necessary documentation along with the
patient's bill and other supporting information to the patient's
county of residence or its designee for processing.
 A county may request that all claims by its residents be
submitted to the county or its designee for review prior to being
forwarded to the commission for payment. If a county exercises
its option to review claims, the reviews must be completed within
fifteen days;
   (2) the population to be served including eligibility criteria
based on family income and resources.  Eligibility is determined
on an episodic basis for a given spell of illness. Eligibility
criteria must be uniform statewide and may include only those
persons who meet the definition of medically indigent;
   (3) the health care services covered;
   (4) a prospective payment system, including a rate of
reimbursement for covered services which is based on hospital
costs rather than hospital charges; 
   (5) cost containment measures. These include, but are not
limited to, all the cost containment measures listed in
subsection (B) of Section 44-6-140 except the second surgical
opinion pilot study;
   (6) a process by which any payment, claim, or eligibility
determination can be contested and appealed;
   (7) a method by which the fund is to be reimbursed. A person
is required to reimburse the fund if that person or services to
that person are determined to be ineligible for coverage by the
fund after payment is made; and
   (8) a method for processing and paying claims. Payment from
the fund may not occur until all other means of paying for or
providing services have been exhausted. This includes Medicaid,
Medicare, health insurance, employee benefit plans, or other
persons or agencies required by law to provide medical care for
the person.  For eligible recipients whose gross family income is
between one hundred percent and two hundred percent of the
federal Community Service Administration guidelines, a sliding
payment scale based on income and resources must be used.
   (E) Prior to January 1, 1986, the State Auditor shall develop
and submit to the House Ways and Means Committee, Senate Finance
Committee, and the State Budget and Control Board a plan for the
audit of the 'Medically Indigent Fund' and in the plan establish
estimated costs of the audit. All costs of the audit are borne by
the fund.
   (F) Nothing in this section may be construed as relieving
hospitals of their Hill-Burton obligation to provide unreimbursed
medical care to indigent persons.
 Section 44-6-160. (A) By August first of each year, the
commission shall compute and publish the annual target rate of
increase for net inpatient charges for all general hospitals in
the State. The target rate of increase will be established for a
twelve-month period from October first through September
thirtieth of the following year. Once established, the target
rate of increase must not be amended during the year except as
provided in subsection (B) of this section. The commission shall
monitor the performance of the hospital industry to contain
costs, specifically as evidenced by the annual rate of growth of
net inpatient charges. If the commission determines that the
annual rate of increase in net inpatient charges for the hospital
industry has exceeded the target rate of increase established for
that year, the commission shall appoint an expert panel for the
purpose of analyzing the financial reports of each hospital whose
net inpatient charges exceeded the target rate of increase. The
panel's review shall take into consideration service volume,
intensity of care, and new services or facilities. The panel
shall consist of at least three members who have broad
experience, training, and education in the field of health
economics or health care finance. The panel shall report its
findings and recommendations, including recommended penalties or
sanctions, to the commission. The commission shall decide what,
if any, penalty it will impose within three months of receiving
all necessary data.
 (B) The commission may impose penalties or sanctions it
considers appropriate. Penalties must be prospective. Financial
penalties are limited to a reduction in a hospital's target rate
of increase for the following year. Any reduction in a hospital's
target rate of increase ~or the next year must not be greater
than the amount the hospital exceeded the industry's target rate
of increase for the previous year. Once a hospital is sanctioned,
it must be reviewed annually until it succeeds in remaining below
its target rate of increase. If a hospital exceeds its target
rate of increase for three consecutive years, it may not receive
any funds from the Medically Indigent Assistance Fund until the
time as the commission determines. A hospital which is barred for
receiving funds from the Medically Indigent Assistance Fund shall
continue to pay the assessment provided for in Section 44-6-150.
 (C) No hospital may be penalized or sanctioned for exceeding the
target rate of increase established for 1986. No hospital may be
penalize or sanctioned for exceeding the target rate of increase
established for any subsequent year until:
   (1) the programs contained in Section 44-6-14 (Medicaid) and
the fund created in Section 44-6-15 have been implemented; and
   (2) the study of the state health care system required in
subsection H of Section 19 of Part Il of the 1985-86 General
Appropriation Act is completed and submitted to the General
Assembly and the Governor. 
Section 44-6-170. (A) In order to develop a timely and meaningful
data base for the medically indigent population and to assist the
commission in its efforts to properly carry out its functions as
provided by the South Carolina Medically Indigent Assistance Act,
the Division of Research and Statistical Services of the State
Budget and Control Board shall require the standardized reporting
by hospitals of the following hospital specific information for
the twelve-month period from October first through September
thirtieth for each federal fiscal year, and the commission shall
reimburse the division for the cost of the provision of these
services. This information must be submitted by February first of
the following year:
 (1) Total gross revenue, including:
   (a) Gross in-patient revenue; 
   (b) Medicare gross revenue; 
   (c) Medicaid gross revenue; and 
   (d) South Carolina Medically Indigent Assistance Fund gross
revenue;
 (2) Total deductions from gross revenue, including: 
   (a) Medicare contractual allowances; 
   (b) Medicaid contractual allowances; 
   (c) Other contractual allowances; and 
   (d) Bad debts;
 (3) Total direct costs of medical education 
   (a) Reimbursed; and 
   (b) Unreimbursed;
 (4) Total indirect costs of medical education 
   (a) Reimbursed; and 
   (b) Unreimbursed;
 (5) Total costs of care for medically indigent 
   (a) Reimbursed; and 
   (b) Unreimbursed;
 (6) Total admissions, including:
   (a) Medicare admissions; 
   (b) Medicaid admissions; 
   (c) South Carolina Medically Indigent Assistance Fund
admissions; and 
   (d) Other admissions;
 (7) Total patient days;
 (8) Average length of stay;
 (9) Total outpatient visits;
 (10) Extracts of the following medical record information: 
   (a) Patient date of birth; 
   (b) Patient number; 
   (c) Patient sex; 
   (d) Patient county of residence; 
   (e) Patient zip code; 
   (f) Patient race;
   (g) Date of admission;
   (h) Source of admission;
   (i) Type of admission;
   (j) Discharge date; 
   (k) Principal and up to four other diagnoses; 
   (l) Principal procedure and date;
   (m) Patient status at discharge;
   (n) Up to four other procedures; 
   (o) Hospital identification number;
   (p) Principal source of payment; and
   (q) Total charges and components of those charges.
 In addition, the division shall collect data a recommended by
the Health Care Planning and Oversight Committee pursuant to
subsection (C) o this section and other data relative to the
medically indigent population, including: demographic
characteristics, economic status utilization of health care
services, and fluctuations in the population over time. These
requirements are promulgated by regulations accordance with the
Administrative Procedures Act. 
 (B) It is the intent of the South Carolina Medically Indigent
Assistance Act and of regulations promulgated pursuant to it to
protect the confidentiality of individual patient information and
the proprietary information of hospitals. Only the data collected
pursuant to the Health Care Planning and Oversight Committee
recommendations as provided in this section may be collected
analyzed, and released to the public as directed by that
committee.  All other hospital-specific information collected
pursuant to subsection (A) of this section is confidential and
must not be released to any other governmental agency or made
public unless release is made of statistical information so that
no individual hospital can be identified. However, if the
hospital industry exceeds the target rate of increase for a given
year, the commission shall have full access to hospital specific
data on any hospital which exceeded the target rate of increase.
All meetings of the expert panel and the commission concerning
those hospitals which exceeded the target rate or increase are
subject to the South Carolina Freedom of Information Act, as are
the individual financial statements of the hospitals reviewed.
 (C) Because accurate, comparable data on the costs and usage of
health care services is not currently available in South
Carolina, it extremely difficult to make careful policy choices
for future health care cost management strategies. Neither the
public sector nor private sector purchasers of health care have
available sufficient data to enable them to make informed choices
among health care providers in the market place. The lack of a
uniform system for the collection and analysis of data, and the
lack of full participation by providers, purchasers, and payors
has led to inadequate and unusable data. In order to remedy this
problem, it is necessary to create a uniform system for the
collection, analysis, and distribution of health care cost data.
The purposes of this data system are to insure that data are
available to make valid comparisons among providers of prices for
services provided and to support ongoing analysis of the health
care delivery system. Accordingly, after receiving the report
from the task force created pursuant to subsection H of Section
19 of Part II of the 1985-86 General Appropriation Act, the
Health Care Planning and Oversight Committee shall recommend to
the division:
 (1) the data elements to be collected and analyzed. These
elements may include, but are not limited to those already listed
in subsection (A) of this section;
 (2) the format in which the data may be released to the public;
and (3) the frequency with which the data should be collected and
released on a routine basis.
Section 44-6-180. (A) Patient records, received by counties, the
commission, or other entities involved in the administration of
the fund created pursuant to Section 44-6-150 are confidential.
Patient records gathered pursuant to Section 44-6-170 are also
confidential. This information must not be released or made
public unless release is made of statistical information so that
no individual person can be identified. Nothing in this
subsection may be construed as limiting access to information
needed by agencies involved with the administration of the fund,
including utilization review and peer review committees.
 (B) Any person violating the provisions of this section is
guilty of a misdemeanor and upon conviction must be fined not
more than one thousand dollars or imprisoned not more than one
year, or both. 
 Section 44-6-190. The commission may promulgate regulations
pursuant to the Administrative Procedures Act. Appeals from
decisions by the commission must be as provided in the
Administrative Procedures Act. 
 Section 44-6-200. (A) Any person who commits a material
falsification of information required to determine eligibility
for the Medically Indigent Assistance Fund is guilty of a
misdemeanor and upon conviction must be fined not more than five
hundred dollars or imprisoned for not more than one year, or
both.
 (B) Any general hospital which materially falsifies information
to seek reimbursement from the Medically Indigent Assistance Fund
is disqualified from participation in the fund for a period not
to exceed two years and fined not more than five thousand
dollars, or both. A hospital disqualified from participation in
the fund shall continue to pay the assessment provided for in
Section 44-6-150.
 (C) The penalties provided for in subsections (A) and (B) of
this section are in addition to the provisions of Section
44-6-150 which require reimbursement to the fund if a person or
services to a person are determined to be ineligible for coverage
after payment is made." 
 D. Chapter 7 of Title 44 of the 1976 Code is amended by adding: 
 "Section 44-7-355. (A) No person, regardless of his ability to
pay or county of residence, may be denied emergency care if a
member of the admitting hospital's medical staff or, in the case
of a transfer, a member of the accepting hospital's medical staff
determines that the person is in need of emergency care.
 (B) For the purposes of this section, 'emergency care' means
treatment which is usually and customarily available at the
respective hospital and that must be provided immediately to
sustain a person's life, to prevent serious permanent
disfigurement, or loss or impairment of the function of a bodily
member or organ, or to provide for the care of a woman in active
labor if the hospital is so equipped and, if the hospital is not
so equipped, to provide necessary treatment to allow the woman to
travel to a more appropriate facility without undue risk of
serious harm.
 (C) In addition to or in lieu of any action taken by the South
Carolina Department of Health and Environmental Control affecting
the license of any hospital, when it is established that any
officer, employee, or member of the hospital medical staff has
recklessly violated the provisions of this section, the
department may require the hospital to pay a civil penalty of up
to ten thousand dollars."
 E. The commission, with the cooperation of the State Department
of Insurance, shall conduct a study of families who:
   (1) have an income over two hundred percent of the Community
Service Administration guidelines; and 
   (2) have medical expenses of such magnitude that full payment
of medical bills is not possible.
 Based on the data gathered through this study, the commission
shall analyze options for meeting this need, including a study of
the need for comprehensive and catastrophic health insurance in
the State. The commission shall report its findings and
recommendations to the Health Care Planning and Oversight
Committee no later than January 1, 1987. 
 F. In cooperation with the Office of the Governor, the Division
of Human Resource Management of the State Budget and Control
Board shall conduct an in-depth study of the current methods of
providing health care benefits to state employees and develop
specific recommendations to the General Assembly as to how the
purchase and delivery of the benefits can be modified to carry
out the purposes of the South Carolina Medically Indigent
Assistance Act. The study and recommendations must be presented
to the Health Care Planning and Oversight Committee and the State
Employees Study Committee of the General Assembly no later than
January 1, 1986. The Budget and Control Board shall proceed to
implement the recommendations of the study which do not require
specific legislation or legislative approval. The study shall
include, but is not limited to:
   (1) contracting for the provision of health services on a
regionalized, as opposed to statewide, basis;
   (2) offering employees or recipients of health care benefits a
choice of plans with varying levels of benefits, varying levels
of deductions and copayments, and varying levels of choices of
provider, but with a constant contribution by the State for each
plan;
   (3) an incentive program which encourages wellness and
prevention while discouraging utilization of health benefits in
an excessive or inappropriate manner;
   (4) participation by other governmental entities in a
state-sponsored plan as a means of enhancing the buying power of
government with a concomitant diminution in costs; and
   (5) the mechanisms which must be established for mandatory
reviews of both the extent and appropriateness of utilization and
the adequacy of care delivered as a result of any plan or
program.
 G. The Department of Insurance shall conduct an in-depth review
of individual and group health plans available in South Carolina,
except for the State Group Insurance Program, for the purpose of
providing comprehensive information on the insured population of
South Carolina. The report must be presented to the Health Care
Planning and Oversight Committee and Insurance Law Study
Committee of the General Assembly by January 1, 1986. The report
shall include, but is not limited to:
   1. descriptive information on the type of and extent to which
plans utilize incentives that encourage wellness and incentives
that discourage inappropriate or excessive utilization;
   2. descriptive information on minimum benefits and conversion
benefits; 
   3. descriptive data on the insured population, including an
estimate of the size of the population and extent of coverage;
   4. descriptive information relating occupation to the type of
and extent of health insurance; and
   5. descriptive information relating to maternity benefits for
obstetric and hospital costs, including coverage for appraisal
and care of newborns and emergency transportation costs.
 H. The Health Care Planning and Oversight Committee shall
convene a task force composed of a fair representation of county
and state governments, providers, payers, and consumers to study
the development of a competitive model for the state health care
system which shall include, but is not limited to, consideration
of:
   (1) the elimination of statutes and regulations which add
unnecessary costs to the delivery of health care;
   (2) the operation of the Certificate of Need program as it
affects price competition among providers;
   (3) the development of alternative delivery systems, such as
health maintenance organizations (HMO's) and preferred provider
organizations (PPO's);
   (4) the promotion of competition in the purchase of insurance
policies by consumers and businesses;
   (5) the promotion of consumer choice among providers on the
basis of price through the collection, analysis, and release of
provider specific and diagnosis specific data on the utilization
and cost of health services. The task force shall recommend which
data elements should be collected and shall recommend a format
for release of the data. It is the goal of the task force to have
data collection begin no later than October 1 1986;
   (6) cost containment in the health care system; and
   (7) health promotion and wellness programs.
 This task force must be created no later the ninety days after
the effective date of the South Carolina Medically Indigent
Assistance Act and shall report its recommendations to the
Governor and General Assembly no later than May 1, 1986.
 I. The Health Care Planning and Oversight Committee shall
receive timely reports from all agencies involved in the
implementation of the South Carolina Medically Indigent
Assistance Act and shall provide consultation and guidance
necessary. The committee may adjust implementation or reporting
dates if it determines an adjustment is necessary.  In order to
assist in the implementation of the South Carolina Medical
Indigent Assistance Act, the committee may appoint a technical
advisory committee to include, but not limited to,
representatives of the hospital industry, physicians, insurance
companies business, consumers, and counties.
 In order to monitor the effectiveness of the South Carolina
Medically Indigent Assistance Act in reducing the cost shift to
paying patients, the Health Care Planning and Oversight Committee
shall report the following information on a hospital
industry-wide basis to the General Assembly by March first of
each year until 1990:
   (1) average hospital charge for each adjusted admission;
   (2) average hospital cost shift for each adjusted admission
due to uncompensated indigent care;
   (3) average hospital cost shift for each adjusted admission
due to bad debts;
   (4) average hospital cost shift for each adjusted admission
due to contractual allowances; and
   (5) average hospital cost shift for each adjusted admission
due to uncompensated costs for medical education.
 The committee shall also include any other information which
relates to increases or decreases in average hospital charges for
each adjusted admission. For the purposes of this subsection, an
adjusted admission refers to an admission which has been weighted
to account for the intensity of services provided.
 J. The Department of Social Services shall, within the funds
available, expand the number of persons eligible for the Aid to
Families with Dependent Children (AFDC) program and state
Medicaid program by increasing the AFDC standard of need and by
implementing the AFDC-Unemployed Parent option.
 K. In the event that all of the federal matching funds
anticipated in the 1985-86 General Appropriation Act are not
available, the State Budget and Control Board shall determine if
sufficient federal funds are available to implement a prospective
payment system for Medicaid hospital reimbursement, to implement
the Unemployed Parent option of the Aid to Families With
Dependent Children (AFDC) program, to raise the standard of need
for the AFDC program and to provide Medicaid services to those
families who would be eligible for the services if the AFDC
standard of need was increased. If the Budget and Control Board
determines that sufficient federal funds are not available to
accomplish all of these tasks, then:
   (1) Sections 44-6-140, 44-6-150, 44-6-160, 44-6-190, and
44-6-200 and subsection (A) of Section 44-6-180 of the 1976 Code,
and subsections I and J of this section, do not take effect; and 
   (2) The Health Care Planning and Oversight Committee shall
convene a representative committee to develop recommendations on
a redesign of the indigent care program in the absence of
sufficient federal funds. These recommendations must be submitted
to the General Assembly in January, 19 at which time the General
Assembly will determine the expenditure of the funds appropriated
in the 1985-86 General Appropriation Act.
 L. The State Department of Education shall investigate the
feasibility of increasing technical and financial support to
school districts for further implementation of comprehensive
health education requirements as established by the National
Professional School Health Educators Organization or the
Association for the Advancement of Health Education and report
its findings to the Health Care Planning and Oversight Committee
by January 1, 1986.
 M. Notwithstanding the provisions of subsection (B) of Section
44-6-140 of the 1976 Code, the State Health and Human Services
Finance Commission shall establish the maximum allowable payment
as soon a practicable after the beginning of the State' fiscal
year.
 N. Notwithstanding the provisions of the South Carolina
Medically Indigent Assistance Act, the Office of Cooperative
Health Statistics of the Division of Research and Statistical
Services of the State Budget and Control Board shall provide to
the Health Care Planning and Oversight Committee a hospital
specific list of the following information concerning the
twelve-month periods ending October 1, 1985, and October 1, 1986: 
   (1) average cost shift for bad debt and unreimbursed costs of
indigent care per admission and 
   (2) South Carolina Medically Indigent Assistance Fund gross
revenue for 1985-86 period only.
 A representative from each hospital, for which the average cost
shift for bad debt and unreimbursed costs of indigent care for
the 1985-86 period is greater than or equal to the same cost
shift for the 1984-85 period, shall appear at a public hearing to
explain why the cost shift di not decrease. This hearing must be
conducted by the Health Care Planning and Oversight Committee. 
SECTION 20 
TO AMEND ARTICLE 31 OF CHAPTER 5 OF TITLE 56 OF THE 1976 CODE, AS
AMENDED, RELATING TO MISCELLANEOUS TRAFFIC RULES, BY ADDING
SECTION 56-5-3880 SO AS TO PROVIDE THAT THE DEPARTMENT OF
HIGHWAYS AND PUBLIC TRANSPORTATION MAY CLOSE STATE HIGHWAYS,
ROADWAYS, OR BRIDGES FOR THE PURPOSE OF ALLOWING MARATHONS OR
OTHER RUNNING EVENTS WHEN THE RACE OR EVENT IS OPEN TO ALL
PERSONS INCLUDING THE HANDICAPPED AND IF SAFETY MAY BE MAINTAINED
AND TO PROVIDE IMMUNITY EXCEPT FOR GROSS NEGLIGENCE; AND TO
REPEAL ACT 583 OF 1980 RELATING TO THE ANNUAL COOPER RIVER BRIDGE
RACE.
 A. Article 31 of Chapter 5 of Title 56 of the 1976 Code is
amended by adding:
 "Section 56-5-3880. The South Carolina Department of Highways
and Public Transportation  may close state highways, roadways, or
bridges for the purpose of allowing marathons or other running
events when the race or event is open to all persons including
the handicapped if in the opinion of the district engineer the
race or event may be conducted in a safe manner. The department,
the city, the county, the organization, and the sponsors of the
race or event are immune from liability except for gross
negligence from incidence arising from participation in or
association with the race or event."
 B. Act 583 of 1980 is repealed. 
SECTION 21
TO AMEND SECTION 11-11-310, AS AMENDED, OF THE 1976 CODE,
RELATING TO A RESERVE FUND AND LIMITATIONS ON ANNUAL
APPROPRIATIONS, SO AS TO, AMONG OTHER THINGS, DELETE PROVISIONS
PROHIBITING THE BUDGET AND CONTROL BOARD FROM EXCEEDING A CERTAIN
PERCENTAGE OF ANNUAL REVENUE ESTIMATES IN MAKING THE PROPOSED
BUDGET AND PROHIBITING THE GENERAL ASSEMBLY FROM APPROVING A
BUDGET IN EXCESS OF A CERTAIN PERCENTAGE OF ANNUAL REVENUE
ESTIMATES, PROVIDE THAT THE BUDGET AND CONTROL BOARD SHALL
PROVIDE FOR A GENERAL FUND RESERVE, CHANGE THE REQUIRED
PERCENTAGE FROM FIVE TO FOUR PERCENT REGARDING THE AMOUNT IN THE
GENERAL FUN RESERVE, AND TO DELETE PROVISIONS RELATING TO, AMONG
OTHER THINGS, THE REQUIREMENT THAT THE BUDGET AND CONTROL BOARD,
WAYS AND MEANS COMMITTEE, AND SENATE FINANCE COMMITTEE EACH YEAR
MAKE AND ADOPT THE ANNUAL OFFICIAL REVENUE ESTIMATES.
 A. The third and fourth paragraphs of Section 11-11-310 of the
1976 Code are amended to read:
 "The Budget and Control Board shall provide for c General Fund
Reserve. Funds accumulating in excess of the annual operating
expenditures shall be transferred to the General Fund Reserve and
the transfer must continue to be made in succeeding fiscal years
until the accumulated total in this reserve reaches an amount
equal to four percent of the General Fund Revenue of the latest
completed fiscal year.
 In the event of a year-end operating deficit, so much of the
Reserve Fund as may be necessary must be used to cover the
deficit. The amount so applied must be restored to the Reserve
Fund out of future revenues and surpluses as herein provided
until the four percent maximum is again reached and actually
maintained."
 B. The second paragraph of Section 11-11-310 of the 1976 Code is
deleted. 
SECTION 22
TO AMEND SECTION 56-3-660, AS AMENDED, OF THE 1976 CODE, RELATING
TO THE FEES FOR SELF-PROPELLED PROPERTY CARRYING VEHICLES AND
DETERMINATION OF VEHICLE GROSS WEIGHT, SO AS TO INCREASE THE FEE,
REQUIRE THE PAYMENT OF AN ANNUAL REGISTRATION FEE FOR VEHICLES
WHICH ARE OPERATED AT A GROSS VEHICLE WEIGHT IN EXCESS OF EIGHTY
THOUSAND POUNDS, AND TO AUTHORIZE THE IMPOUNDMENT OF VEHICLES
REGISTERED IN THIS STATE WHICH ARE FOUND TO BE OPERATING IN
EXCESS OF THE GROSS VEHICLE WEIGHT FOR WHICH THEY ARE CURRENTLY
REGISTERED.
 A. Section 56-3-660 of the 1976 Code, as last amended by Act 177
of 1981, is further amended to read:
 "Section 56-3-660. The determination of gross vehicle weight for
the purpose of registering and licensing self-propelled property
carrying vehicles is the empty weight of the vehicle or
combination of vehicles and the heaviest load to be transported
by the vehicle or combination of vehicles as declared by the
registered owner.  All determinations of weight must be made in
units of one thousand pounds or major fraction of one thousand
pounds. The declared gross vehicle weight shall apply to all
self-propelled property carrying vehicles operating in tandem
with trailers or semitrailers except that the gross weight of a
trailer or semitrailer is not required to be included when the
operation is to be in tandem with a self-propelled property
carrying vehicle which is licensed for six thousand pounds or
less gross weight and the gross vehicle weight of the combination
does not exceed nine thousand pounds. The department may register
and license any vehicle of this classification for which the
annual registration and license fee is eighty dollars or more for
a semiannual or one-half year beginning on January first and
ending on June thirtieth of the same year upon application to the
department by the owner and the payment of the appropriate fees.
The registration and license fee for vehicles in this
classification which are registered for the remaining eleven
months or less of the twelve-month year ending on December
thirty-first or the remaining five months or less for the
one-half period ending on June thirtieth shall be the
proportionate part of the specified annual fee for the remainder
of the year or one-half year based on one-twelfth of the
specified twelve-month fee for every month or part of a month
remaining in such registration and license year or one-half year.
No proportionate fee shall be reduced lower than ten dollars.
Every person making application for a registration and license
for a motor vehicle of this classification shall declare the true
unloaded or empty weight of every such vehicle.
The fees for the Gross Vehicle Weight are as follows:
 GROSS VEHICLE WEIGHT                      FEE
 Not over 4,000 pounds                    $15.00
 4,001 pounds to 5,000 pounds              20.00
 5,001 pounds to 6,000 pounds              30.00
 6,001 pounds to 7,000 pounds              35.00
 7,001 pounds to 8,000 pounds              40.00
 8,001 pounds to 9,000 pounds              45.00
 9,001 pounds to 10,000 pounds             50.00
 10,001 pounds to 11,000 pounds            55.00
 11,001 pounds to 12,000 pounds            60.00
 12,001 pounds to 13,000 pounds            65.00
 13,001 pounds to 14,000 pounds            70.00
 14,001 pounds to 15,000 pounds            75.00
 15,001 pounds to 16,000 pounds            92.00
 16,001 pounds to 17,000 pounds            97.75
 17,001 pounds to 18,000 pounds           103.50
 18,001 pounds to 19,000 pounds           109.25
 19,001 pounds to 20,000 pounds           130.00
 20,001 pounds to 21,000 pounds           136.50 
 21,001 pounds to 22,000 pounds           154.00
 22,001 pounds to 23,000 pounds           161.00
 23,001 pounds to 24,000 pounds           180.00
 24,001 pounds to 25,000 pounds           187.50
 25,001 pounds to 26,000 pounds           196.00 
 26,001 pounds to 27,000 pounds           204.00 
 27,001 pounds to 28,000 pounds           212.00 
 28,001 pounds to 29,000 pounds           219.00 
 29,001 pounds to 30,000 pounds           226.00 
 30,001 pounds to 31,000 pounds           234.00 
 31,001 pounds to 32,000 pounds           241.00 
 32,001 pounds to 33,000 pounds           249.00 
 33,001 pounds to 34,000 pounds           257.00 
 34,001 pounds to 35,000 pounds           264.00 
 35,001 pounds to 36,000 pounds           272.00 
 36,001 pounds to 37,000 pounds           279.00 
 37,001 pounds to 38,000 pounds           286.00 
 38,001 pounds to 39,000 pounds           294.00 
 39,001 pounds to 40,000 pounds           302.00 
 40,001 pounds to 41,000 pounds           308.00 
 41,001 pounds to 42,000 pounds           317.00 
 42,001 pounds to 43,000 pounds           325.00
 43,001 pounds to 44,000 pounds           332.00
 44,001 pounds to 45,000 pounds           340.00
 45,001 pounds to 46,000 pounds           347.00
 46,001 pounds to 47,000 pounds           354.00
 47,001 pounds to 48,000 pounds           362.00
 48,001 pounds to 49,000 pounds           370.00
 49,001 pounds to 50,000 pounds           377.00
 50,001 pounds to 51,000 pounds           385.00
 51,001 pounds to 52,000 pounds           392.00
 52,001 pounds to 53,000 pounds           400.00
 53,001 pounds to 54,000 pounds           407.00
 54,001 pounds to 55,000 pounds           415.00
 55,001 pounds to 56,000 pounds           422.00
 56,001 pounds to 57,000 pounds           430.00
 57,001 pounds to 58,000 pounds           438.00
 58,001 pounds to 59,001 pounds           445.00
 59,001 pounds to 60,000 pounds           453.00
 60,001 pounds to 61,000 pounds           460.00
 61,001 pounds to 62,000 pounds           467.00
 62,001 pounds to 63,000 pounds           475.00
 63,001 pounds to 64,000 pounds           482.00
 64,001 pounds to 65,000 pounds           566.00
 65,001 pounds to 66,000 pounds           574.00
 66,001 pounds to 67,000 pounds           583.00
 67,001 pounds to 68,000 pounds           591.00
 68,001 pounds to 69,000 pounds           600.00
 69,001 pounds to 70,000 pounds           609.00
 70,001 pounds to 71,000 pounds           618.00
 71,001 pounds to 72,000 pounds           668.00
 72,001 pounds to 73,000 pounds           677.00
 73,001 pounds to 74,000 pounds           687.00
 74,001 pounds to 75,000 pounds           696.00
 75,001 pounds to 76,000 pounds           705.00
 76,001 pounds to 77,000 pounds           758.00
 77,001 pounds to 78,000 pounds           769.00
 78,001 pounds to 79,000 pounds           779.00
 79,001 pounds to 80,000 pounds           800.00
Notwithstanding any other provision of this chapter, the
Department may enter into agreement with other states in a
registration and license reciprocal agreement known as the
International Registration Plan and the registration and license
required in this section may be apportioned for vehicles which
qualify and are licensed in accordance with the provisions of the
International. Registration Plan. Such funds shall be deposited
to the State Highway Fund as established in Section 57-11-20 and
expended for the law enforcement activities of the Department and
other purposes as provided by law.
 An additional registration fee of $11.25 per each thousand
pounds or fraction thereof over 80,000 pounds shall be paid for
all vehicles operated in this state which exceed 80,000 pounds
gross vehicle weight. The payment of any additional registration
fee for vehicles which are operated in excess of 80,000 pounds
gross vehicle weight as specified herein is in addition to any
fees or penalties which may be required in accordance with
Section 56-5-4160 and Section 56-5-4170.
 Any vehicle registered in this state and found to be operating
in excess of the gross vehicle weight for which it is currently
registered may be impounded by the Department until such time as
all registration fees, permit fees, or penalties are paid or
arrangements for payment of such fees and/or penalties
satisfactory to the Department have been made."
 B. This section shall take effect July 1, 1985.
SECTION 23
TO PROVIDE A TAX ON FUEL ETHANOL BLENDS; TO ALLOW TAX INCENTIVES
ON FUEL ETHANOL BLENDS PRODUCED IN SOUTH CAROLINA; AND TO AMEND
ACT 197 OF 1979, AMENDED, BY DELETING SECTION 14 RELATING TO
GASOHOL.
 A. (1) Fuel ethanol means one hundred ninety-eight proof ethanol
denatured in conformity with Bureau of Alcohol, Tobacco and
Firearms regulations and distilled in a facility whose principal
(over fifty percent) feed stock is wood, cereal grain, and its
by-products, potatoes and their by-products, sugar beets and
their by-products, or turnips and their by-products.
 (2) Fuel ethanol blends are ninety percent gasoline and ten
percent fuel ethanol in which the gasoline portion of the blend
or the finished gasoline fuel ethanol blend meets the sulfur,
distillation range, reid vapor pressure, and copper corrosion
requirements contained in ASTM D-439.
 (3) The tax on fuel ethanol blends is seven cents a gallon until
June 30, 1992, or until loss of revenues reaches twenty million
dollars and at such time all tax incentives must be removed and
the tax on fuel ethanol blends must be at the prevailing tax rate
per gallon.
 (4) The tax imposed in this section must be collected as
provided in Chapters 27, 29, and 31 of Title 12 of the 1976 Code.
The provisions for the reinforcement and penalties for the
violation of such provisions must be in accordance with the
requirement of the aforementioned chapters of the 1976 Code. The
proceeds from the imposition of the tax on fuel ethanol blends
must be distributed as follows: one-fifteenth must be added to
the one cent per gallon as presently apportioned to the counties
as provided in Section 12-27-380, three fifteenths must be added
to the 2.66 cents per gallon as apportioned to the counties as
provided in Section 12-27-400, and eleven-fifteenths must be
added to the 9.34 cents per gallon as provided in Section
12-27-380.    The proceeds from the imposition of the tax on fuel
ethanol blends must be expended for the purposes as provided by
law.
 (5) In the event that the federal motor fuel tax exemption for
alcohol blend is increased prior to June 30, 1992, the gasoline
tax imposed on fuel ethanol blends in South Carolina must be
increased by a corresponding amount.
 (6) The fuel ethanol blends otherwise eligible for the tax
incentive provided in this subsection may not contain fuel
ethanol produced outside South Carolina unless the South Carolina
Tax Commission determines that the fuel ethanol blends claimed to
be eligible for the tax incentive contain fuel ethanol produced
in a state that also grants an incentive, exemption, credit, or
refund at least equal to South Carolina's tax incentives from
that state's motor vehicle fuel excise tax or sales tax for
similar fuel ethanol blends containing fuel ethanol produced in
South Carolina.
 (7) The South Carolina Tax Commission shall promulgate
regulations for the procedures necessary to claim the tax
incentives.
 B. The tax incentive provided in subsection A of this section is
not effective after April 1, 1987, if no fuel ethanol blends are
produced in South Carolina by that date. The Budget and Control
Board shall determine if fuel ethanol blends are produced in
South Carolina by April 1, 1987.
 C. Section 14 of Act 197 of 1979 is repealed.
 D. This section shall take effect January 1, 1986.
SECTION 24
TO PROVIDE THAT WHEN THE LAST DAY OF A MONTH ON WHICH A PERSON
MAY OBTAIN HIS ANNUAL MOTOR VEHICLE LICENSE PLATE OR RENEWAL
STICKER WITHOUT PENALTY FALLS ON A SATURDAY, SUNDAY, OR STATE
HOLIDAY, THE PERSON HAS UNTIL THE END OF THE NEXT WORKING DAY
IMMEDIATELY FOLLOWING THAT SATURDAY, SUNDAY, OR STATE HOLIDAY TO
OBTAIN HIS LICENSE PLATE OR RENEWAL STICKER WITHOUT PENALTY.
 When the last day of a month on which a person may obtain his
annual motor vehicle license plate or renewal sticker without
penalty falls on a Saturday, Sunday, or state holiday, the person
has until the end of the next working day immediately following
that Saturday, Sunday, or state holiday to obtain his license
plate or renewal sticker without penalty.
SECTION 25
TO LIMIT TO TWO THOUSAND ONE HUNDRED DOLLARS FOR THE FIRST
TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 1984, THE AMOUNT
TAXPAYERS OR THEIR SURVIVING SPOUSES RECEIVING MILITARY, FEDERAL
CIVIL SERVICE, OR QUALIFIED PLAN PENSION BENEFITS MAY DEDUCT FROM
TAXABLE INCOME FOR PURPOSES OF THE STATE INCOME TAX.
 Notwithstanding the amounts deductible from South Carolina
taxable income provided in items (a), (b), and (c) of Section
12-7-435 of the 1976 Code, for a taxpayer's first taxable year
beginning after December 31, 1984, the maximum deduction
permitted by those items is two thousand one hundred dollars.
SECTION 26
TO AMEND SECTION 12-9-310, AS AMENDED, OF THE 1976 CODE, RELATING
TO WITHHOLDING OF INCOME TAX, SO AS TO EXEMPT NONRESIDENT OWNERS
OF FOUR RENTAL UNITS OR LESS FROM INCOME TAX WITHHOLDING.
 Item (2) of Section 12-9-310 of the 1976 Code, as last amended
by Section 21 of Act 512 of 1984, is further amended to read:
 "(2) Making payments to a nonresident of rentals or royalties at
the rate of eight hundred dollars or more a year for the use of
or for the privilege of using property in this State, or making
payments of prizes or winnings to a resident or nonresident,
shall withhold seven percent of the total amount of each payment.
The rental of residential housing units, when four or fewer units
are owned by a nonresident, is not subject to withholding under
this section. For payments to a corporation the withholding must
be at the rate of six percent. In regard to bingo prizes or
winnings paid to residents or nonresidents of this State, seven
percent of the total amount of each payment of five hundred
dollars or more must be withheld. The provisions of this item do
not apply to spectator sporting events for which an admission is
charged;".
SECTION 27
TO AMEND SECTION 12-35-516 OF THE 1976 CODE, RELATING TO SALES
TAX LIMITATIONS, SO AS TO PROVIDE FOR A MAXIMUM TAX OF THREE
HUNDRED DOLLARS ON SALES OR LEASES OF TRAILERS OR SEMITRAILERS
PULLED BY A TRUCK TRACTOR AND RECREATIONAL VEHICLES AND
SELFPROPELLED LIGHT CONSTRUCTION EQUIPMENT AND ON LEASES OF THE
VEHICLES.
 Q. Section 12-35-516 of the 1976 Code, as added by Section 17,
Part II of Act 512 of 1984, is amended to read:
 "Section 12-35-516. In case of the sale or lease of any (1)
aircraft, (2) motor vehicle, (3) motorcycle, (4) boat, (5)
trailer or semitrailer pulled by a truck tractor as each is
defined in Section 56-3-20 but not including house trailers or
campers as defined in Section 56-3-710  (6) recreational vehicle
including, but not limited to tent campers, travel trailers, park
models, park trailers, motor homes, and fifth wheels or (7) self
propelled light construction equipment with compatible
attachments limited to a maximum of 16 net engine horsepower, the
maximum tax levied by this chapter is three hundred dollars with
respect to each (1) aircraft, (2) motor vehicle, (3) motorcycle,
(4) boat, (5) trailer or semitrailer pulled by a truck tractor as
each is defined in Section 56-3-20 but not including house
trailers or campers as defined in Section 56-3-710 or (6)
recreational vehicle including, but not limited to, tent campers,
travel trailers, park models, park trailers, motor homes, and
fifth wheels or (7) self-propelled light construction equipment
with compatible attachments limited to a maximum of 16C net
engine horsepower. In the case of a lease, the total tax rate
required by law shall apply on each payment until the aggregate
tax paid equals three hundred dollars. Nothing in this section
prohibits a lessee from paying the total tax due at the time of
execution of the lease or with any payment under the lease. To
qualify for the tax limitation provided by this section, a lease
must be for a period in excess of ninety days."
 B. The provisions of Section 12-35-516, as amended in this
section, shall apply only to leases executed on or after the
effective date of this section.
 C. This section shall take effect September 1, 1985.
SECTION 28
TO PROVIDE THAT THE BUDGET AND CONTROL BOARD UNDER CERTAIN
CONDITIONS, IS AUTHORIZED TO ENTER INTO LEASE PURCHASE AGREEMENTS
WHICH WOULD PROVIDE THE STATE WITH AN ECONOMICALLY FEASIBLE
METHOD OF REPLACING THE CENTRAL CORRECTIONAL INSTITUTION.
 In furtherance of the State's interest in complying with the
terms of Nelson v. Leeke, and in minimizing potential legal
liability in the future, and in furtherance of achieving a cost
effective and timely solution to this problem through innovative
means available in the private sector, after consultation with
the Joint Bond Review Committee and the State Reorganization
Commission, the State Budget and Control Board is authorized to
enter into lease purchase agreements consistent with the
Consolidated Procurement Code of the State of South Carolina
which would provide the State an economically feasible method of
replacing the Central Correctional Institution (CCI), so long as
these agreements (1) can be demonstrated to be comparably cost
effective to traditional financing methods, (2) can result in
long-term operational cost savings, (3) are in compliance with
the standards enunciated in Nelson v. Leeke, (4) can result in
the provision of a new facility of sufficient bed, program, and
support space more expeditiously than traditional methods, (5)
that will minimize the wasteful expenditure of funds for further
capital improvements to CCI, and (6) will be subject to the
year-to-year appropriation process of the General Assembly. 
SECTION 29
TO AMEND THE 1976 CODE BY ADDING CHAPTER 22 TO TITLE 2 SO AS TO
CREATE THE SOUTH CAROLINA JOINT COMMITTEE ON AQUACULTURE.
 Title 2 of the 1976 Code is amended by adding:
"Chapter 22
 The South Carolina Joint Committee on Aquaculture
 Section 2-22-5. The General Assembly of South Carolina declares
that aquaculture has the potential for augmenting existing
commercial and recreational fisheries and for producing other
renewable resources, thereby assisting the State of South
Carolina in meeting its food needs and contributing to the
reduction of foreign seafood imports into South Carolina and the
United States. It is, therefore, in the State's interest, and it
is the State's policy, to encourage the development of
aquaculture in South Carolina.
 Section 2-22-10. There is created the South Carolina Joint
Committee on Aquaculture. The membership of this committee is as
follows: the Chairman of the Senate Committee on Fish, Game and
Forestry and three members of that committee appointed by the
Chairman, and the Chairman of the House Committee on Agriculture
and Natural Resources and three members of that committees
appointed by the Chairman.
 Section 2-22-20. The committee has the responsibility for
coordination of all public aquaculture and mariculture
development in this State. In an effort to eliminate duplication
and to ensure use of appropriated monies in the most efficient
manner, the committee shall establish an interagency advisory
staff whose director must be appointed by the committee. Agencies
and institutions represented on the staff shall include: the
Department of Agriculture, the Department of Health and
Environmental Control, Clemson University, the University of
South Carolina, S.C. Wildlife and Marine Resources, S.C. Sea
Grant Consortium, and S.C. Coastal Council.
 State agencies and institutions are directed to, within their
fiscal capabilities, make appropriate resources and personnel
available to the committee for input and assistance upon request
by the committee. 
 Section 2-22-30. The committee shall:
   (1) Develop state policies and initiate legislative programs
for aquaculture development in South Carolina.
   (2) Promote general understanding of aquaculture among public
agencies and the public.
   (3) Have staff prepare and periodically update a state
aquaculture development plan which shall include an assessment of
resources, opportunity, and constraints. In the plan, effort must
be made to recognize the close relationship between aquaculture
and agriculture and Clemson University's unique role and a land
grant institution, as well as to recognize the resources
available at the University of South Carolina. The plan shall
specifically foster interagency and institutional cooperation in
the development of aquaculture.
   (4) Request staff review of proposals for aquaculture research
in South Carolina to prevent duplication of effort.
   (5) Plan and encourage research and development programs aimed
at developing new aquaculture and aquaculture related industries.
 Section 2-22-40. Through the staff, the committee in the primary
contact point for aquaculture. As part of this responsibility,
the committee shall keep abreast of major aquaculture
developments in industry, state, federal, and international
agencies, colleges, and universities, and make the information
readily available to all South Carolina aquaculture
participants."
SECTION 30
TO AMEND SECTION 51, PART II OF ACT 512 OF 1984, RELATING TO THE
SALE OF TANGIBLE PERSONAL PROPERTY, SOLD PURSUANT TO CERTAIN
CONSTRUCTION CONTRACTS, BEING EXEMPT FROM THE ONE PERCENT
INCREASE IN THE SALES AND USE TAX, SO AS TO EXPAND THE TYPE OF
CONTRACTS WHICH QUALIFY FOR THIS EXEMPTION AND TO CHANGE THE
DEADLINE BY WHICH VERIFIED COPIES OF THESE CONTRACTS MUST BE
FILED WITH THE SOUTH CAROLINA TAX COMMISSION FROM OCTOBER 1,
1984, TO AUGUST 1, 1985.
 The first paragraph of Section 51, Part II of Act 512 of 1984 is
amended to read:
 "The gross proceeds of sales of tangible personal property
delivered prior to July 1, 1986, either under the terms of a
construction contract executed prior to June 28, 1984, or a
written bid submitted prior to June 28, 1984, culminating in a
construction contract entered into prior to or after July 1,
1984, are exempt from the one cent increase in the sales and use
tax provided by Section 12-35-515 of the 1976 Code, if a verified
copy of the contract is filed with the South Carolina Tax
Commission prior to August 1, 1985."
SECTION 31
TO AMEND THE 1976 CODE BY ADDING SECTION 14-1-20 SO AS TO
ESTABLISH THE SALARIES OF JUDGES OF THE COURT OF APPEALS, CIRCUIT
JUDGES, FAMILY COURT JUDGES, AND SOLICITORS AS A PERCENTAGE OF
SALARIES FIXED IN THE ANNUAL GENERAL APPROPRIATION ACT FOR
JUSTICES OF THE SUPREME COURT.
 Chapter  1 of Title 14 of the 1976 Code, as amended, is further
amended by adding:
 "Section 14-1-200. The General Assembly shall establish the
salary of the Chief Justice and Associate Justices of the Supreme
Court in the Annual General Appropriation Act and shall fix the
salaries for the Court of Appeals, Circuit Court Family Court,
and Solicitors according to the following schedule:
 (1) The Chief Judge of the Court of Appeal shall receive a
salary in an amount not to exceed ninety-nine percent of the
salary fixed for Associate Justices of the Supreme Court;
 (2) Judges of the Court of Appeals and Circuit Court Judges
shall receive a salary in an amount not to exceed ninety-five
percent of the salary fixed for Associate Justices of the Supreme
Court;
 (3) Judges of the Family Court and Circuit Solicitors shall
receive a salary in an amount not  to exceed ninety percent of
the salary fixed for Judges of the Court of Appeals and Circuit
Court."
SECTION 32
TO AMEND THE 1976 CODE BY ADDING CHAPTER 54 TO TITLE 12 SO AS TO
PROVIDE FOR A UNIFORM METHOD OF THE COLLECTION AND ENFORCEMENT OF
ALL TAXES LEVIED AND ASSESSED BY THE SOUTH CAROLINA TAX
COMMISSION TO AMEND SECTION 16-1-10, RELATING TO CRIME CLASSIFIED
AS FELONIES, SO AS TO INCLUDE PROVISION OF SECTION 12-54-40
RELATING TO TAX EVASION FAILURE TO COLLECT OR REMIT TAXES,
ASSISTING FILING A FALSE RETURN OR DOCUMENT, OR ATTEMPTING TO
DEFEAT THE COLLECTION OF TAXES, AND TO REPEAL ARTICLE 5 OF
CHAPTER 53 OF TITLE 12 OF THE 1976 CODE RELATING TO COLLECTION
AND ENFORCEMENT PROCEEDINGS.
 A. Title 12 of the 1976 Code is amended by adding:
"Chapter 54
Uniform Method of Collection and Enforcement of Taxes Levied and
Assessed by the South Carolina Tax Commission
 Section 12-54-10. The word 'person' or 'taxpayer', for the
purpose of this chapter, unless otherwise required by the text,
includes any individual, firm, partnership, association,
corporation, receiver, trustee, fiduciary, or any other group or
combination acting as a unit and the State or any agency or
instrumentality, authority, or political subdivision thereof,
including municipalities. 'Commission' means the South Carolina
Tax Commission.
 Section 12-54-20. Any person who fails to remit the tax due or
additional tax as provided by law must be charged interest at the
rate provided under Internal Revenue Code Sections 6621 and 6622.
Interest must be calculated on the full amount of tax or portion
thereof, exclusive of penalties from the time the tax or
additional tax was due until paid in its entirety. The provisions
of this section apply to all taxes levied or assessed by the
Commission.
 Section 12-54-30. If the Commission discovers on examination of
a return or otherwise that the tax, penalty, or interest paid by
any person is in excess of the amount legally due, the Commission
may order a refund or give credit for the overpayment. Upon the
allowance of a credit of refund of any tax, penalty, or interest
paid, interest is allowed and paid on the amount of the credit or
refund at the rate provided for in Section 12-54-20 from the date
the tax, penalty, or interest was paid to the date the order for
refund or credit was issued. No interest may be paid on refunds
provided for under Section 12-9-380 during the first seventy-five
days following the due date for the filing of the return or the
date the return was filed, whichever occurs later. 
 Section 12-54-40. (a) Except as otherwise provided, this section
applies to every tax or revenue law of the State that provides
for the filing with the Commission of a return or statement of
the ta or the amount taxable.
 (b) There must be added to and become a part o the tax imposed
by the tax or revenue laws, an collection as such:
   (1) In the case of failure to file a return on or before the
date prescribed by law, (determined with regard to any extension
of time for filing), there must be added to the amount required
to be shown as tax on the return, a penalty of five percent of
the amount of the tax if the failure is for not more than one
month, with an additional five percent for each additional month
or fraction thereof during which the failure continues, not
exceeding twenty-five percent in the aggregate For the purpose of
this paragraph, the amount of tax required to be shown on the
return must be reduced by the amount of any part of the tax which
is paid on or before the date prescribed for payment of the tax
and by the amount of any credit against the tax which may be
claimed upon the return.
   (2) (a) In case of failure to pay any tax on or before the
date prescribed by law (determined with regard to any extension
of time for paying) there must be added to the tax due a penalty
of one-half of one percent of the amount of the tax if the
failure is for not more than one month, with an additional
one-half of one percent for each additional month or fraction
thereof, during which the failure continues, not exceeding
twenty-five percent in the aggregate.
     (b) If any part of an underpayment of tax required to be
shown on a return is due to fraud there must be added to the tax
an amount of fifty percent of the underpayment. The penalties
provided herein are in lieu of all other penalties provided by
law and in addition to interest provided by Section 12-54-20.
   (3) A person who is liable to obtain a license or purchase
stamps for identification purposes, who fails to obtain or
display the license properly, or who fails to affix the stamps
properly, or fails to comply with statutory provisions, is
subject to a penalty of not less than fifty dollars nor more than
five hundred dollars for each failure. For failure to obtain or
display a license as prescribed in Section 52-15-210 and Section
52-15-250, the penalty is fifty dollars for each failure to
comply.
   (4) (a) A person who files what purports to be a return of the
tax imposed by any provision of law administered by the
Commission but which:
 (1) does not contain information on which the substantial
correctness of the tax liability may be Judged, or
 (2) contains information that on its face indicates the
liability is substantially incorrect; and
     (b) the conduct referred to in paragraph 
       (a) is due to:
         (1) a position which is frivolous, or
         (2) a desire (which appears on the purported return) to
delay or impede the administration of state tax laws, then the
person is liable to a penalty of five hundred dollars. This
penalty is in addition to all other penalties provided by law.
 (5) Whenever it appears to the circuit court that proceedings
before it have been instituted or maintained by the taxpayer
primarily for delay or that the taxpayer's position in the
proceedings is frivolous or groundless, damages in an amount not
to exceed five thousand dollars must be awarded to the State by
the circuit court in its decision. Damages so awarded must be
assessed at the same time as the deficiency and paid upon notice
and demand from the Commission and collected as a part of the
tax.
 (6) (a) A person who wilfully attempts in any manner to evade or
defeat any tax imposed by a title administered by the Commission
or the payment thereof, in addition to other penalties provided
law, is guilty of a felony and upon conviction must be fined not
more than ten thousand dollars imprisoned not more than five
years, or both together with the cost of prosecution.
   (b) A person required under any provision law administered by
the Commission to collect, account for, and pay over any tax
imposed by a provision of law who wilfully fails to collect
truthfully account for and pay over the tax, addition to other
penalties provided by law, guilty of a felony and upon conviction
must fined not more than ten thousand dollars or imprisoned not
more than five years, or both together with the cost of
prosecution.
   (c) A person required under any provision of law administered
by the Commission to pay an estimated tax or tax, or required by
any provision of law or by any regulation to make a return, keep
any records, or supply any information, who wilfully fails to pay
the estimated tax or tax make the return, keep the records, or
supply the information, at the time or times required by law or
regulation, in addition to other penalties provided by law, is
guilty of a misdemeanor and upon conviction, must be fined not
more than ten thousand dollars, or imprisoned not more than on
year, or both, together with the cost of prosecution.
   (d) In lieu of any other penalty provided by law, any person
required by law or regulation to furnish a statement who wilfully
furnishes a false or fraudulent statement in the manner, at the
time and showing the information required by law or regulation,
is guilty of a misdemeanor and upon conviction must be fined not
more than one thousand dollars or imprisoned not more than one
year, or both.
 (e) An individual required to supply information to his employer
under Chapter 9 of Title 12 who wilfully supplies false or
fraudulent information, or who wilfully fails to supply
information thereunder which would require an increase in the tax
to be withheld under Chapter 9, Title 12, in lieu of any other
penalty provided, is guilty of a misdemeanor and upon conviction
must be fined not more than five hundred dollars, or imprisoned
not more than one year, or both.
 (f) A person who:
   (1) Wilfully makes and subscribes any return, statement, or
other document, which contains or is verified by a written
declaration that it is made under the penalties of perjury, and
which he does not believe to be true and correct as to every
material matter; or 
   (2) Wilfully assists in, or procures, counsels, or advises the
preparation or presentation under, or in connection with any
matter arising under those provisions of law administered by the
Commission of a return, affidavit, claim, or other document,
which is fraudulent, or is false as to any material matter,
whether or not the falsity or fraud is with the knowledge or
consent of the person authorized or required to present the
return, affidavit, claim, or document is guilty of a felony and,
upon conviction, must be fined not more than five hundred dollars
or imprisoned not more than three years or both, together with
the cost of prosecution.
   (3) Wilfully removes, deposits, or conceals, or is concerned
in removing, depositing, or concealing any goods or commodities
for which any tax is or must be imposed, or any property upon
which levying is authorized pursuant to law, with intent to evade
or defeat the assessment or collection of any tax imposed by this
provision of law administered by the Commission is guilty of a
felony and, upon conviction, must be fined not more than five
thousand dollars or imprisoned not more than three years, or
both, together with the cost of prosecution.
   (4) In connection with the preparation of a tax return for
another, the filing of a tax return, or the payment of any tax,
receives money from the payment of any tax, receives money from
the other person with the understanding that it is to be paid
over to the Commission to discharge in whole or in part, the
other person's tax liability and wilfully fails to pay over the
same to the Commission is guilty of a misdemeanor and upon
conviction must be fined not more than five thousand dollars or
imprisoned for not more than three years, or both, for each
offense together with the cost of prosecution.
   (5) Wilfully delivers or discloses to the Commission any list,
return, account, statement, or other document known by him to be
fraudulent or to be false as to any material matter, is guilty of
a misdemeanor and, upon conviction, must be fined not more than
five thousand dollars or imprisoned for not more than one year,
or both.
 Section 12-54-50. When the bank upon which any uncertified check
tendered to the Commission in payment of any obligation due to
the Commission, refuses payment of the check on account of
insufficient funds of the drawer in the bank and the check is
returned to the Commission, a penalty of ten dollars must be
imposed. This section applies to all taxes or license fees levied
or assessed by the Commission.
 Section 12-54-60. If a person fails to make any report or return
as required by provisions of law administered by the Commission,
the Commission shall make an estimate of the taxable liability of
the person, from the best information obtainable, and according
to the information, assess the taxes, fees, penalties, and
interest due the State from the person, give notice of the
assessment to the person, and make demand upon him for payment.
 Section 12-54-70. (a) The Commission may, for good cause, allow
further time for the filing of returns or remitting of tax due,
required under the provisions of law administered by the
Commission.
 The request for an extension may be granted only if he request
is filed with the Commission on or before the day the return of
the tax is due. A tentative return is required reflecting one
hundred percent of the anticipated tax to be paid for the taxable
period, to be accompanied by a remittance for the tentative tax
liability. Interest at the rate as provided under Section
12-54-20, calculated from the date the tax was originally due,
must be added to the balance due whenever an extension to file or
to remit tax due is granted.
 (b) If the amount remitted with the tentative return fails to
reflect at least ninety percent of the tax to be paid for the
period granted by the extension, a penalty as provided in item
(b)(1) of section 12-54-40 must be imposed, in the absence of
reasonable cause, on the difference between the amount remitted
and amount required to be remitted under the provisions of this
section.
 (c) Provisions regarding prepayment of ninety percent of the
estimated liability do not apply to persons filing monthly
reports. For monthly filers, no extension may be granted for more
than one additional month beyond the due date. The time and
payment requirements of this section do not apply for estate tax
purposes if a hardship extension is granted under Section
12-15-730; but interest must be calculated on any outstanding
amount until completely paid.
 (d) An extension may not be granted to a taxpayer who has been
granted an extension for a previous period and has not fulfilled
the requirements of the previous period.
 Section 12-54-80. Except as otherwise provided in this section,
the amount of taxes due on any return which has been filed as
required by the provisions of law administered by the Commission
must be determined and assessed within thirty-six months from the
date the return was filed or due to be filed, whichever occurs
later.
 If, before the expiration of the time prescribed in this section
for the mailing of a notice of any assessment, the taxpayer has
consented in writing to the mailing of the notice after the time,
notice of assessment may be mailed at any time prior to the
expiration of the period agreed upon. The period so agreed upon
may be extended by subsequent agreements in writing made before
the expiration of the period previously agreed upon.
 (1) When a fraudulent return with the intent to evade tax has
been filed, or in the case of failure to file a return, the tax
may be assessed and collected and suit or proceedings for the
collection of the tax may begin at any time.
 (2) In the case of any tax administered by the Commission, if
the taxpayer omits twenty-five percent of gross income, sales
price, gross receipts, gross proceeds of sale, or gross estate
properly includable therein on any tax return due to be filed
under provisions of law administered by the Commission, the tax
may be assessed within six years after the return was filed.
 Section 12-54-90. A person, who is licensed by the Commission to
do business in this State, who fails, neglects, or refuses to
comply with the law shall have any one or more licenses held by
him revoked. The Commission may revoke any taxpayer's license
within ten days after notification to him of failure to comply
with provisions of law administered by the Commission. A person
whose license has been revoked may not be issued a new license
until outstanding liabilities are satisfied.
 The Commission may review and determine whether a new license
may be issued according to guidelines established by it.
 Section 12-54-100.  The Commission or its duly authorized agent
may for the purpose of ascertaining the correctness of any
return, making determination of the tax liability, or inspection
of licenses, examine the books, invoices, papers, records,
memoranda, equipment, or licenses bearing upon the matters
required to be included on any return. A taxpayer, upon request,
may delay the examination up to thirty days. The provisions of
this section do not apply if there is reasonable evidence that
the taxpayer is about to destroy or remove the books, papers,
records, or memoranda from the State or otherwise make them
unavailable for examination or inspection.
 Section 12-54-110.  When a person, who is required to make a
return or obtain a license under the provisions of law
administered by the Commission, (a) fails to do so at the time
required, (b) delivers any return which, in the opinion of the
Commission is erroneous, or (c) refuses to allow any regularly
authorized agent of the Commission to examine his books and
records, the Commission may summon (a) the person, (b) any other
person having possession, care, or custody of books of account
containing entries relating to the business of such person, or
(c) any other person it considers proper to appear before the
Commission and produce the books at a time and place named in the
summons and to give testimony and answer questions under oath
respecting any item of income liable to tax on the return
thereof. The summons must in all cases be served by an authorized
agent of the Commission by delivering an attested copy to the
person in hand or leaving the copy at the person's last or usual
place of abode. When the summons requires the production of books
and returns, it is sufficient if the books are described with
reasonable certainty.
 Whenever a person summoned under the provisions of this section
neglects or refuses to obey the summons, the Commission may apply
to any circuit judge for an attachment against him for contempt.
Any judge may hear the application and, if satisfactory proof is
made, shall issue an attachment directed to the sheriff of the
county in which the person resides for the arrest of the person.
Upon the person being brought before him, the judge shall proceed
to a hearing of the case. The judge may make an order consistent
with existing laws for the punishment of contempt, to enforce
obedience to the requirements of the summons.
 Section 12-54-120. If any tax, additional tax interest, or
penalty imposed by the Commission remains due and unpaid for a
period of ten day the Commission shall issue a warrant for
distraint under its hand and official seal, directed to a
authorized agent of the Commission commanding him to levy upon
and sell the real and personal property of the person for the
payment of the amount thereof, with added penalties, interest,
and cost of executing the warrant, and to return the warrant to
the Commission and pay to it the money collected, by a time to be
therein specified not more than sixty days after receipt of the
warrant. Immediately upon receipt of the warrant, the agent shall
file a copy of the warrant with the clerk of court or where
appropriate the Register of Mesne Conveyances of any county in
this State in which property of the taxpayer named in the warrant
may be or may have been located, and thereupon the clerk of court
shall enter in the judgment docket in the column for Judgment
debtors, the name of the taxpayer mentioned in the warrant and in
appropriate columns the amount of tax, or portion thereof, and
the penalties for which the warrant was issued, and the date when
the copy was filed and shall index the warrant upon the index of
judgments. Thereupon, the amount of the warrants docketed becomes
a lien upon the title to an interest in real property or chattels
real or any property of the taxpayer, including bank deposit and
all other choses in action on property incapable of manual levy
or delivery. 
 Section 12-54-130.  If any person liable to pay any tax neglects
or refuses to pay the same within ten days after notice and
demand, the Commission or its authorized representatives, may
serve the person's employer with a notice to withhold setting
forth thereon the amount to be withheld and the applicable tax
period. The employer shall upon service of the notice withhold
twenty-five percent of the compensation due or payable to the
person for each pay period until the full amount withheld, after
which the same must be remitted to the Commission. Should the
employment of the person terminate, the employer shall withhold
the full amount of compensation due the employee, not exceeding,
the amount in the notice. The employer shall at that time remit
the amount so withheld and give further notice to the Commission
of the termination of the person's employment.
 Section 12-54-140. Every corporation shall notify the Commission
in writing of all changes in income as reported to the Internal
Revenue Service when the income is changed by the Internal
Revenue Service. Notification to the Commission must be made
within sixty days after a final determination is received from
the Internal Revenue Service. Notification of adjustments made by
the Internal Revenue Service must be made under separate cover
from any return filed or due to be filed with the Commission. The
Commission shall, upon receipt of the notification, adjust the
returns of the corporation and give notice of assessment to the
corporation within ninety days from the date of receipt of
notification. The limitations of time provided for in Section
12-7-2220 relating to the assessment of additional tax and
Section 12-47-440 relating to the application for refund do not
apply to any underpayment or overpayment of South Carolina income
tax resulting from changes in income made by the Internal Revenue
Service. 
 Section 12-54-150. Whenever the Commission issues a warrant or
tax execution under its hand, interest as prescribed in Section
12-54-20 must be calculated on the amount of tax due from the
time the tax or additional tax was due until paid in its
entirety.
 Section 12-54-160. The Commission, unless prohibited within a
specific section, may waive, dismiss, or reduce penalties
provided for in this chapter; interest may not be waived,
dismissed, or reduced. 
 Section 12-54-170. Penalties and interest collected under the
provisions of this chapter are considered funds collected under
the chapter imposing the tax and must be deposited to the
appropriate fund and distributed in accordance with appropriate
distribution provisions.
 Section 12-54-180. Penalties and interest imposed by this
chapter must be collected by the Commission in the manner as all
other taxes ar collected.
 Section 12-54-190. Unless otherwise specified the provisions of
this chapter take precedence over all other related statutory
provisions. 
 Section 12-54-200. (a) The Commission, after notification as
provided in subsection (b) of this section, may require any
person subject to provisions of law administered by the
Commission not including Section 12-35-330, to post a cash or
surety bond if the person fails to file a timely return or pay
any tax for as many as two tax filing periods in a twelve-month
period. The amount of the bond must be determined by the
Commission and may not be greater than three times the estimate
average liability each filing period of the person required to
file the return. A cash bond must be held by the State Treasurer,
without interest, a surety conditioned upon prompt payment of all
taxes, penalties, and interest imposed by law upon the person.
When any person required to post bond complies with all
requirements of law an regulations for a period of twenty-four
consecutive months, the Commission shall return the bond and
cancel the bonding requirements.
 (b) The Commission shall serve the notice required by subsection
(b) of this section b certified mail, or by an authorized agent
of the Commission delivering the notice to the person in hand or
by leaving the notice at the person's last or usual place of
abode or at his place of business or employment. For
corporations, partnerships, or trusts, the notice may be
delivered by certified mail, or by an authorized agent for the
Commission delivering the notice to an officer, partner, or
trustee in hand, or by leaving the notice at the officer's,
partner's, or trustee's last or usual place of abode or at his
place of business or employment.
 Section 12-54-210. Any taxpayer liable for any tax administered
by the Commission shall keep books, papers, memoranda, records,
render statements, make returns, and comply with regulations as
the Commission may prescribe. Persons failing to comply with the
provisions of this section must be penalized in an amount to be
assessed by the Commission not to exceed five hundred dollars for
the period covered by the return in addition to any other
penalties provided by law.
 Section 12-54-220. The Commission may permit the Commissioner of
Internal Revenue of the United States, the proper officer of any
state, or the authorized representative of either of these
officers to inspect any return of any taxpayer or may furnish to
the officer or his authorized representative an abstract of any
return of any taxpayer, or supply him with information concerning
any item contained in any return or disclosed by the report of
any investigation of the return of any taxpayer. But the
permission is granted or the information furnished to the officer
or his representative only if the statutes of the United States
or of the other state, as the case may be, grant substantially
similar privileges to the appropriate officer of this State.
Information received as a result of an exchange of information
between the State of South Carolina and the Internal Revenue
Service or any other state is not subject to the provisions of
Act 593 of 1978, the Freedom of Information Act.
 Section 12-54-230. The Employment Security Commission shall
allow the South Carolina Tax Commission access to the information
contained in the Employer's Quarterly Report and any by-product
of the report. The report or information extracted from the
report is not subject to provisions of Act 593 of 1978, the
Freedom of Information Act."
 B. In addition to the crimes classified as felonies in Section
16-1-10 of the 1976 Code, violations of paragraphs (a) and (b) of
item (6) and subparagraphs (2) and (3) of paragraph (f) of item
(6) of subsection (b) of Section 12-54-40 are declared felonies.
 C. Article 5 of Chapter 53 of Title 12 of the 1976 Code is
repealed. 
 D. The provisions of Chapter 54 of Title 12 are effective
beginning September 1, 1985.
SECTION 33
TO AUTHORIZE THE TAX COMMISSION TO ESTABLISH AN AMNESTY PERIOD
FOR THE VOLUNTARY DISCLOSURE AND PAYMENT OF DELINQUENT TAXES.
 In order to encourage the voluntary disclosure and payment of
taxes owed to the State, the General Assembly finds it desirable
to establish a three month period during which the South Carolina
Tax Commission shall waive the penalties imposed under Titles 12,
27, 48, and 52 of the 1976 Code for any taxpayer who voluntarily
files delinquent returns and pays all taxes and interest owed.
 A. There is established an amnesty period for the voluntary
disclosure and payment of delinquent taxes to commence September
1, 1985, and end November 30, 1985. During this period, the
Commission shall not pursue criminal prosecution and shall waive
all penalties imposed by law. 
 B. If a taxpayer is granted amnesty, the Commission shall not
initiate a criminal investigation of the taxpayer for the
delinquent tax paid or tax period. Further, if a taxpayer is
granted amnesty the Commission shall not refer this taxpayer to
the South Carolina Attorney General's Office for criminal
prosecution for the tax or tax periods covered by the granting of
amnesty.
 C. The Commission shall grant amnesty to any taxpayer who files
a request for amnesty form and qualifies under one or more of the
following categories:
 (1) Taxpayers who voluntarily file all delinquent tax returns
and pay in full all taxes and interest due thereon;
 (2) Taxpayers who voluntarily file amended tax returns to report
income not included on original return and pay all taxes and
interest thereon; 
 (3) Taxpayers who voluntarily file an amended tax return to
correct an incorrect or insufficient original return and pay all
taxes and interest due thereon;
 (4) Taxpayers who voluntarily pay in full all previously
assessed tax liabilities and interest due thereon.
 D. The Commission shall not grant amnesty to any taxpayer who is
the subject of a state tax related criminal investigation or
criminal prosecution.
 E. The Commission shall not waive penalties attributable to any
one filing period if the taxpayer has outstanding liabilities for
other periods.
 F. Payments made by a taxpayer under amnesty must be by
certified check or money order.
 G. Any taxpayer who has an appeal pending with respect to an
assessment made by the  Commission is eligible to participate in
the amnesty program if the taxpayer pays all taxes and interest
owed. Payment of the outstanding liability does not constitute a
forfeiture of appeal or an admission of liability for the
disputed assessment.
 H. Any returns and payments which become due during the amnesty
period are not eligible for amnesty.
 I. The Commission may review all cases in which amnesty has been
granted and may on the basis of mutual mistake of fact, fraud, or
misrepresentation rescind the grant of amnesty. Any taxpayer who
files false or fraudulent return or attempts in any manner to
defeat or evade a tax under the amnesty program is subject to
applicable civil penalties and criminal prosecution.
SECTION 34
TO AMEND SECTION 11-11-310, AS AMENDED, OF THE 1976 CODE,
RELATING TO LIMITATIONS ON ANNUAL APPROPRIATIONS, SO AS TO
PROVIDE FOR THE ESTABLISHMENT OF A CAPITAL EXPENDITURE FUND AND
FOR THE MANNER AND CONDITIONS UNDER WHICH REVENUE IN THIS FUND
MAY BE APPROPRIATED. 
 The fifth paragraph of Section 11-11-310 of the 1976 Code, as
last amended by Act 487 of 1984, further amended to read:
 "The General Assembly beginning with fiscal year 1985-86 in the
annual general appropriation ac shall appropriate into a Capital
Expenditure Fund which is separate and distinct from the general
reserve fund the following amounts:
 (1) For fiscal year 1985-86, the amount appropriated must be
one-half of one percent of the general fund revenue estimate for
that year;
 (2) For fiscal year 1986-87, the amount appropriated must be one
and one-half percent the general fund revenue estimate for that
year;
 (3) For fiscal year 1987-88, and for each fiscal year
thereafter, the amount appropriated must by two and one-half
percent of the general fund revenue estimate for that year.
 Revenues in this Capital Expenditure Fund may be appropriated by
the General Assembly in separate legislation for the purpose of
accelerating the retirement of state bonded indebtedness or for
the purpose of avoiding the issuance of bonds for projects that
are authorized but not issued."
SECTION 35
TO AMEND SECTION 15 OF ACT 518 OF 1980, RELATING TO THE DATE BOND
BILLS MUST BE INTRODUCED TO BE CONSIDERED BY THE GENERAL
ASSEMBLY, SO AS TO CHANGE THE DATE FROM APRIL FIRST TO MAY FIRST
AND TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO CAPITAL
IMPROVEMENT BONDS, SO AS TO ALLOW THE GENERAL ASSEMBLY TO
AUTHORIZE CAPITAL IMPROVEMENT BONDS IN EVEN-NUMBERED YEARS
RATHER
THAN ODD-NUMBERED YEARS.
 A. Section 15 of Act 518 of 1980 is amended to read:
 "Section 15. Beginning with the 1981 session of the General
Assembly and thereafter, neither House of the General Assembly
shall consider the Capital Improvement Bond Bill which is
introduced later than May first."
 B. An unnumbered section of Act 1377 of 1968, added by Section
13 of Act 518 of 1980, is amended to read:
 "Section ____. State capital improvement bonds may be authorized
by the General Assembly in even numbered years."
SECTION 36
TO AMEND ARTICLE 1 OF CHAPTER 33 OF TITLE 39 OF THE 1976 CODE,
RELATING TO THE STATE DAIRY COMMISSION, SO AS TO CHANCE THE NAME
OF THE COMMISSION TO THE STATE DAIRY BOARD, TO RESTRUCTURE THE
BOARD, ELIMINATE THE AUTHORITY OF THE BOARD TO FIX PRICES PAID BY
DISTRIBUTORS TO PRODUCERS, CHANGE THE MANNER IN WHICH ASSESSMENTS
ARE LEVIED AND EXPENDED, AND FURTHER REGULATE THE MILK INDUSTRY.
 A. Article 1 of Chapter 33 of Title 39 is amended to read:
 "Section 39-33-10. As used in this article, unless otherwise
stated or the context of the subject matter clearly indicates
otherwise, the words and terms enumerated below are defined as
follows:
 'Person', an individual, partnership, corporation, association,
or other business entity;
 'Board', the State Dairy Board;  
 'Director', the Director of the Board;
 'Distributor', any of the following persons wherever located or
operating, whether within or without the State of South Carolina,
doing business and engaged in receiving, producing, processing,
manufacturing, subdistribution, distributing, marketing, or
handling in any manner any of the products covered by this
article and offering such products for sale in this State.
 A person, irrespective of whether such person is a producer,
except a distributor who sells less than one hundred gallons of
fluid milk products per day which are produced on his own farm:
   (a) who receives, processes, manufactures, and packages any
products covered by this article for human consumption, 
   (b) who offers for sale any products covered by this article
at wholesale or retail, 
   (c) who operates a store or other establishment from which any
products covered by this article ar offered for sale at retail.
 'Producer', any person, irrespective of whether such person is
also a distributor or member or producer association who produces
milk for sale a fluid milk in the State;
 'Independent producer', any producer who is not member of a
producer association or association of producers;
 'Market', any county or group of counties within this State,
including the State as a whole;
 'Producer association or association of producers', any
cooperative association of producers incorporated and existing
under the cooperative laws of South Carolina or any such
association incorporated and existing under similar laws of
another state, which is authorized to do business in South
Carolina and which the Board determines to have full authority
for the sales of milk and dairy products of its members; 
 'Zone I', the counties of Abbeville, Anderson, Cherokee,
Greenville, Greenwood, Laurens, McCormick, Newberry, Oconee,
Pickens, Spartanburg, and Union;
 'Zone II', the counties of Aiken, Chester-, Edgefield,
Fairfield, Kershaw, Lancaster, Lee, Lexington, Richland, Saluda,
Sumter, and York; 
 'Zone III', the counties of Allendale Bamberg, Barnwell,
Beaufort, Berkeley, Calhoun, Charleston, Chesterfield, Clarendon,
Colleton, Darlington, Dillon, Dorchester, Florence, Georgetown,
Hampton, Horry, Jasper, Marlboro, Marion, Orangeburg, and
Williamsburg;
 'Store', any establishment which purchases or otherwise acquires
in processed and packaged for any of the products covered by this
article for use or resale for human consumption;
 'Licensee', any person required to obtain a license by this
article and any person who is a de facto licensee under this
article;
 'Milk', the clean lacteal secretion obtained by the complete
milking of one or more healthy cows, including milk that is
cooled, pasteurized, standardized, or otherwise processed with a
view of selling it a fluid milk, cream, skimmed milk, cultured
milk, or as any other fluid milk product;
 'Subsidiary', any person over whom a distributor or an affiliate
of a distributor has, or several distributors collectively have,
either directly or indirectly, actual or legal control, whether
by stock ownership or in any other manner;
 'Affiliate', any person or subsidiary thereof who has, either
directly or indirectly, actual or legal control over a
distributor, whether by stock ownership or otherwise;
 'Books and records', any books, records, accounts, invoices,
contracts, financial statements, memoranda, documents, papers,
correspondence, or other data pertaining to the business of any
person; 
 'Costs', money paid or financial obligations incurred by a
person in the production, manufacture, or acquisition of any
products covered by this article and the amount of money paid, or
financial obligations incurred in the processing, packaging,
distributing, marketing, advertising, and selling, including all
administrative and overhead costs, of such products;
 'Doing business', the engaging in or the transaction of any
activity in this State for the purpose of financial profit or
gain;
 'Price' money furnished or to be furnished by a purchaser of
milk or milk products.
 Section 39-33-20. The products covered by this article are all
Grade A milk and milk products defined pursuant to Section
44-1-140. Such products shall include Grade A raw milk for
pasteurization, reconstituted milk derived by recombining dry
milk solids, evaporated or condensed milk with water, which is
processed with a view of selling it as a fluid milk product and
all grade. A milk product from whatever source derived which
shall include, but not be limited to, pasteurized, homogenized,
flavored, and cultured milk, skim milk, lowfat milk, creamy
buttermilk, and cultured milk products.
 Section 39-33-30. There is created the State Dairy Board which
is composed of three Grade A milk producers, one from each of the
three zones defined by this article appointed by the Governor,
one distributor from the state at large appointed by the
Governor, and the Commissioner of agriculture as an ex officio
member who has voting power.
 The three producer members, one from each of the three zones
defined by this article, shall reside in the zone which they
represent but not more than one of such producers selling milk to
the same company is eligible to serve on the Board. The fact that
a producer is a member of a cooperative shall not prevent such
person from serving as a producer member of the Board. The Board
shall call a public meeting of the producers living in any zone
prior to the expiration of the term of the producer member from
such zone. At such meetings each group shall nominate, for its
respective representation on the Board, two producers for each
vacancy which may need to be filled. Each producing farm shall
have one vote. The names of the nominees must be forwarded to the
Governor by the Board and he shall appoint one producer from the
nominees submitted for each vacancy.
 The term of each appointive member is for three years and until
his successor is appointed and qualified and members are limited
to two consecutive terms. Any vacancy on the Board must be filled
by appointment of the Governor in the manner of the original
appointment for the unexpired term.
 The Board shall elect a chairman and a vice chairman from among
the appointive members.
The members must be paid per diem as provided by law for members
of state boards, committees, and commissions in the performance
of their official duties, plus the actual expense of travel
required by the Board. The Board shall appoint a director,
prescribe his duties, and may remove him at its pleasure. The
director may hire, prescribe the duties of, and discharge
employees, subject to the approval of the Board. The principal
offices of the Board must be in the City of Columbia in space
provided by the State.
 Section 39-33 40. The Board shall prepare an annual budget and
shall collect from independent producers, associations of
producers, and licensed distributors in the form of a monthly
assessment on each one hundred pounds of Grade A raw milk or
processed milk products sold in this State, the sum of money
required for this budget. The assessment due on milk sold to or
purchased by a distributor in this State from a producer or
distributor which is not licensed by this State or a producer
association which is not chartered by the Secretary of State to
do business in South Carolina must be collected by the
distributor from the seller and remitted to the Board by the
distributor. If a producer or an association of producers fails
to pay on demand the assessment to the distributor, it is the
responsibility of the Board to take whatever steps necessary to
collect the appropriate amount. All receipts from assessments
collected under this article must be paid by the Board to the
State Treasurer and must be placed by him in a general fund to
the credit of an account to be known as the 'South Carolina Dairy
Board Account' and such an amount as may be necessary, and no
more, is appropriated out of this account for the payment of all
expenses incurred by the Board in administering and enforcing
this article. The expenditure of funds from this account shall
not exceed the funds as provided in the annual appropriation act.
 Section 39-33-50. The Board shall establish, supervise, and
regulate: 
 (1) A uniform classified milk purchasing plan based upon the
sales, utilization, and disposition of all milk received from
producers and other sources by each individual distributor or a
uniform classified milk purchasing plan based upon the total
market-wide sales, utilization, and disposition of all milk
received from producers and other sources by all distributors in
any market.
 (2) A statewide uniform production incentive plan for the
establishment of producers' milk bases which shall most
effectively encourage more even year-round production of milk in
order to provide a constant and adequate supply of fresh,
wholesome milk for the inhabitants of this State and such
producers' bases must be used by distributors to allocate to
producers' milk disposed of in each class.
 The Board may receive and disburse any funds necessary to
effectuate the operation of a market-wide milk purchasing plan.
Any funds received by the Board pursuant to the operation of a
market-wide purchasing plan must be paid by the Board to the
State Treasurer and must be deposited to an account known as the
'Producer Settlement Fund'. Nothing in this article may be
construed to extend or to limit the authority of the Department
of Health and Environmental Control relating to milk or milk
products within this State as provided by item (3) of Section
44-1-140. 
 Section 39-33-60. Clemson University shall annually update
pertinent economic factors relevant to the cost of producing milk
in the State and report on its findings to the Board. The Board,
upon receipt of the report, shall hold a public hearing to review
the report issued by Clemson University and any other factors
affecting the cost of producing milk.
 Section 39-33-70. The Board may hold hearings to investigate any
matters affecting the state dairy industry.
 The Board shall have the authority under this section to issue
subpoenas, take depositions of witnesses, and grant immunity from
prosecution for violation of terms under the statutes for giving
testimony or furnishing records in the course of an
investigation. 
 The Board may apply to the Court of Common Pleas for orders
requiring compliance by persons failing or refusing to comply
with the provisions of this article.
 Section 39-33-80. The Board shall require all licensees to
maintain records pertaining to the acquisition, processing,
marketing, and sale of milk, and to file verified reports
containing such information within the time and in the manner as
may be prescribed by the Board. Records required to be kept by
the licensees must be preserved for a period of three years.
 The Board shall have access to all books and records required by
this section and employees of the Board may enter all places of
business during regular working hours for the purpose of
inspecting, auditing, or copying such records. Audits of milk
processing plants to ensure proper payment to dairy farmers for
milk based upon its classified usage and administration of the
milk base plan may not be conducted by the Board more than once
quarterly. Audits shall not extend beyond a review of milk
records necessary to ensure proper payment to dairy farmers for
milk based upon its classified usage and administration of the
milk base plan.
 Upon written request, the Board shall make available to any
person information obtained by the Board and used in the
determination of any prices established by the Board pursuant to
this article; provided, however, except for the proper
enforcement of this article, any information pertaining to a
person or business obtained by the Board from reports, audits, or
investigations, or otherwise, may not be made public in a form
enabling identification of any particular person or business.
 Any person violating the provisions of this section is guilty of
a misdemeanor and upon conviction must be punished by a fine of
not more than one thousand dollars or imprisoned for no more than
sixty days. 
 Section 39-33-90. A distributor shall no engage, either directly
or indirectly, in doing business in any market until he has
applied for an obtained a license from the Board. A store shall
not be required to make application for a license but is
considered to be a de facto licensee a herein required. The Board
may classify licensee and may issue licenses to distributors to
produce receive, process, manufacture, or sell any of the
products covered by this article in any particular market.
 The Board may decline to grant a license or ma suspend or revoke
a license already granted upon due notice and after a hearing
before the Board whenever the applicant or licensee has violate
regulations issued by the Department of Health an Environmental
Control, or any provisions of this article.
 The Board may, in lieu of license suspensions invoke a penalty
of not less than fifty dollars nol more than five thousand
dollars. All receipts from such penalties must be paid by the
Board to the State Treasurer for deposits in the same manner as
assessments.
 Section 39-33-100. Any person violating an provision of this
article, except as otherwise herein provided, or regulations or
order: promulgated pursuant thereto or of any licensed issued by
the Board is guilty of a misdemeanor and upon conviction must be
punished by a fine of no less than twenty-five dollars nor more
than two hundred dollars or by imprisonment for not more than
thirty days, and each day during which such violation shall
continue is considered a separate violation. 
 Section 39-33-110. Solicitation by or collusion or joint
participation between or among an producer, association of
producers, manufacturer distributor or store, or any
representative, to violate any of the provisions of this article
and regulations or orders issued pursuant thereto, or the use of
any misrepresentation, threat, intimidation, or boycott to
effectuate the Board of such violations, shall make all persons
participating therein subject to the same penalties is for actual
violations.
 Section 39-33-120. The Board shall promulgate regulations to
carry out the provisions of this Article."
 B. The three producer members now serving on the State Dairy
Board shall continue to serve until the expirations of their
terms. The terms of all other members of the existing Board who
are not provided for in this act shall terminate July 1, 1985.
 C. This section shall take effect July 1, 1985. 
SECTION 37
TO AMEND SECTION 61-9-310, AS AMENDED, OF THE 1976 CODE, RELATING
TO LICENSES TO SELL CERTAIN BEVERAGES, SO AS TO INCREASE THE FEE
FOR ANNUAL BEER AND WINE RETAIL DEALER LICENSES FROM EIGHTY
DOLLARS TO ONE HUNDRED TWENTY-FIVE DOLLARS.
 Section 61-9-310 of the 1976 Code, as last amended by Section
12C, Part II, of Act 466 of 1982, is further amended to read:
 "Section 61-9-310. Every person engaging in the business of
selling beer, ale, porter, wine or any beverage which has been
declared to be nonalcoholic and nonintoxicating under the
provisions of Section 61-9-10 shall apply to the South Carolina
Alcoholic Beverage Control Commission for a permit to sell such
beverages. Each applicant shall pay a filing fee of one hundred
dollars which is not refundable. Retail dealers shall pay to the
Commission one hundred twenty-five dollars per annum for retail
permits, and wholesale dealers shall pay to the Commission one
thousand dollars per annum for wholesale permits. But retail
permits may be issued by the Commission for the sale of beer for
consumption off of the premises of the retailer for five dollars
per annum. Permits must be issued for the state's fiscal year
upon the payment of the fees provided herein for a full year.
Separate permits are to be required for each separate place of
business." 
SECTION 38
TO AMEND THE 1976 CODE BY ADDING SECTION 27-32-24 SO AS TO
PROVIDE FOR THE EVALUATION OF THE SHARE UNITS FOR PROPERTY
TAXATION PURPOSES, TO ESTABLISH RESPONSIBILITY FOR THE PAYMENT OF
TAXES ON THE SHARE UNITS, AND TO ESTABLISH AGAINST WHOM AN
EXECUTION FOR NONPAYMENT OF TAXES MUST BE ISSUED.
The 1976 Code is amended by adding:
 "Section 27-32-240. (1) For purposes of property taxation, each
time share unit, operating under a 'vacation time sharing
ownership plan' a defined in item (8) of Section 27-32-10, must
be valued in the same manner as if the unit were owned by a
single owner. The total cumulative purchase price paid by the
time share owners for a unit may not be utilized by the tax
assessor's offices as a factor in determining the assessed value
of the unit. A unit operating under a 'vacation time sharing
lease plan' as defined in item (9) of Section 27-32-10, may,
however, be assessed the same as other income producing and
investment property.
 (2) The assessment and taxation of real property committed to a
vacation time ownership plan must be in the name of the business
entity that is designated to provide or receive the funds for
payment of the taxes as set forth in item (3) of Section
27-32-95.
 (3) Should the business entity fail to pay the taxes, an
execution for the taxes must be issued in the joint name of all
the owners of the time sharing periods and must be collected as
provide by law." 
SECTION 39
TO AMEND SECTIONS 56-1-1330 AND 56-5-2990, BOTH AMENDED, OF THE
1976 CODE, RELATING TO THE ALCOHOLIC TRAFFIC SAFETY SCHOOL AND
SUSPENSION OF DRIVER LICENSES FOR DUI, SO AS TO ALLOW FOR A FEE
OF FIFTY DOLLARS TO BE CHARGED TO DEFRAY THE COST OF ASSESSING
THE DEGREE AND KIND OF ALCOHOL AND DRUG ABUSE PROBLEM OF PERSONS
ENTERING THE ALCOHOL AND DRUG SAFETY ACTION PROGRAM.
 A. Section 56-1-1330 of the 1976 Code, as last amended by Act
355 of 1982, is further amended to read:
 "Section 56-1-1330.  The provisional driver's license provision
shall include a mandatory requirement that the applicant enter an
Alcohol and Drug Safety Action Program certified by the South
Carolina Commission on Alcohol and Drug Abuse and be assessed to
determine the extent and nature of an alcohol and drug abuse
problem, if any, and successfully complete treatment or education
services recommended by the program. The applicant shall bear the
cost of such services which cost must be determined by the
administering agency and approved by the South Carolina
Commission on Alcohol and Drug Abuse. Such cost shall not exceed
$50.00 for assessment, $100.00 for education services, and
$250.00 in total for any and all services. The Commission shall
recommend subsequent cost changes on an annual basis subject to
the approval of the General Assembly. If the applicant fails to
successfully complete the services as directed by the Department
of Highways and Public Transportation, the South Carolina
Commission on Alcohol and Drug Abuse shall notify the Department
and the provisional driver's license must be revoked and the
suspension imposed for the full periods specified in Section
56-5-2990, such suspension to begin on date of notification to
the individual."
 B. The second paragraph of Section 56-5-2990 of the 1976 Code,
as last amended by Act 114 of 1983, is Further amended to read: 
 "Any person whose license is suspended under the provisions of
this section must be notified of suspension by the Department of
Highways and Public Transportation of the requirement to be
evaluated by and successfully complete an Alcohol and Drug Safety
Action Program certified by the South Carolina Commission on
Alcohol and Drug Abuse prior to reinstatement of the license. An
assessment of the degree and kind of alcohol and drug abuse
problem, if any, of the applicant must be prepared and a plan of
education or treatment or both must be developed based upon the
assessment. Entry into and successful completion of the services,
if such services are necessary, recommended in the plan of
education or treatment or both developed for the applicant is a
mandatory requirement of the restoration of driving privileges to
the applicant. The applicant shall bear the cost of the services
to be determined by the administering agency and approved by the
Commission on Alcohol and Drug Abuse. The cost shall not exceed
$50.00 for assessment, $100.00 for education services, and
$250.00 in total for any and all services. No applicant may be
denied services due to an inability to pay.  The applicant shall
be terminated from the Alcohol and Drug Safety Action Program no
later than six months after the date of program enrollment. If
the applicant has not successfully completed the services as
directed by the Alcohol and Drug Safety Action Program by the end
of the six-month period of enrollment, a hearing must be provided
by the administering agency and if further needed by the
Commission. If the applicant is unsuccessful in the Alcohol and
Drug Safety Action Program the Department may restore the
privilege to operate a motor vehicle upon the recommendation of
the Medical Advisory Board as utilized by the Department if it
determines public safety and welfare of the petitioner may not be
endangered." 
SECTION 40
TO AMEND SECTION 46-21-340 OF THE 1976 CODE, RELATING TO SEED
TESTING, SO AS TO AUTHORIZE FREE TESTING FOR GERMINATION AND
PURITY FOR CITIZENS OF THE STATE; TO SET FEES TO BE CHARGED TO
NONRESIDENTS; TO AUTHORIZE THE COMMISSIONER OF AGRICULTURE TO
PROVIDE FEES FOR SPECIAL SEED TESTS; AND TO PROVIDE THAT THE FEES
MUST BE REMITTED TO THE GENERAL FUND.
 Section 46-21-340 of the 1976 Code is amended to read:
 "Section 46-21-340.  Any citizen, firm, or corporation of this
State may have samples of seeds tested for germination and purity
free of charge in the State Seed Laboratory.
 Individuals, firms, and corporations outside the State shall
have a like privilege on payment of a fee comparable to private
laboratories. Charges for special tests performed by the State
Seed Laboratory for which the Association of Official Seed
Analysts' directions are given may be established by the
Commissioner of Agriculture.
 The fees charged for these seed tests must be remitted to the
General Fund."
SECTION 41
TO AMEND SECTION 12-19-110 OF THE 1976 CODE, RELATING TO THE
LICENSE TAX ON UTILITIES AND ELECTRIC COOPERATIVES, SO AS TO
REQUIRE THE LICENSE TAX TO BE LEVIED UPON THE GROSS RECEIPTS
DERIVED FROM SERVICES RENDERED FROM REGULATED BUSINESS INSTEAD OF
UPON THE ENTIRE CROSS RECEIPTS, TO PROVIDE THAT "GROSS RECEIPTS
DERIVED FROM SERVICES RENDERED FROM REGULATED BUSINESS" DOES NOT
INCLUDE GROSS RECEIPTS ARISING FROM ANY TRANSACTIONS BETWEEN ANY
OF THE SEPARATE MEMBERS OF THE CONSOLIDATED RETURN GROUP, AND TO
DELETE ARCHAIC LANGUAGE. 
 Section 12-19-110 of the 1976 Code is amended to read:
 "Section 12-19-110. In addition to the license fee provided by
Section 12-19-100 and any and all other license taxes and fees or
taxes of whatever kind, there is levied an annual license fee of
three mills upon the gross receipts derived from services
rendered from regulated business within this State during the
calendar year next preceding by every railroad company, express
company, street railway company, navigation company, waterworks
company, power company, distribution electric cooperative, light
company, gas company, telegraph company, telephone company,
parlor, dining or sleeping car company, tank car company
refrigerating car company, fruit growers' express car company,
and all other privately operated car line.  However, where a
consolidated return pursuant to Section 12-7-1570 is filed, the
phrase 'the gross receipts derived from services rendered from
regulated business' does not include gross receipts arising from
any transactions between any of the separate members of the
consolidated return group. The license fee provided for by this
section must be paid at the time of filing the reports required
by this chapter.  Electric cooperatives subject to the license
fee imposed by Section 12-19-100 and distribution electric
cooperatives subject to the license fee provided by this section
shall file reports pursuant to the provisions of Sections
12-19-20 and 12-19-139."
SECTION 42
TO AMEND SECTIONS 9-1-1790 AND 9-11-90, BOTH AMENDED, OF THE 1976
CODE, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE
SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO
INCREASE THE AMOUNT A RETIRED MEMBER WHO RETURNS TO COVERED
EMPLOYMENT MAY EARN WITHOUT AFFECTING HIS BENEFITS FROM SEVEN
THOUSAND DOLLARS TO SEVEN THOUSAND FIVE HUNDRED DOLLARS.
 A. Section 9-1-1790 of the 1976 Code, as last amended by Section
50, Part II of Act 512 of 1984, is further amended to read:
 "Section 9-1-1790. Any retired member of the System may return
to employment covered by the System and earn up to seven thousand
five hundred dollars a fiscal year without affecting the monthly
retirement allowance he is receiving from the System. If the
retired member continues in service after having earned seven
thousand five hundred dollars in a fiscal year, his retirement
allowance must be discontinued during his period of service in
the remainder of the fiscal year. If the employment continues for
at least forty-eight consecutive months the provisions of Section
9-1-1590 apply. The provisions of this section do not apply to
any employee or member of the System who has mandatorily retired
because of age pursuant to Section 9-1-1530."
 B. Subsection (4) of Section 9-11-90 of the 1976 Code, as last
amended by Section 50, Part II of Act 512 of 1984, is further
amended to read: 
 "(4) Notwithstanding the provisions of subsections (1) and (2)
of this section, any retired member of the System may return to
employment covered by the System and earn up to seven thousand
five hundred dollars a fiscal year without affecting the monthly
retirement allowance he is receiving from the System. If the
retired member continues in service after having earned seven
thousand five hundred dollars in a fiscal year, his retirement
allowance must be discontinued during his period of service in
the remainder of the fiscal year. If the employment continues for
at least forty-eight consecutive months the provisions of Section
9-1-1590 apply. The provisions of this section do not apply to
any employee or member of the System who has mandatorily retired
because of age pursuant to Section 9-1-1530."
SECTION 43 
TO AMEND SECTION 12-35-550, AS AMENDED, OF THE 1976 CODE,
RELATING TO EXEMPTION FROM SALES AND USE TAXES, SO AS TO EXEMPT
THE GROSS PROCEEDS OF THE SALE OF HEARING AIDS AS DEFINED BY
SECTION 40-25-20.
 A. Section 12-35-550, as last amended by an act of 1985 bearing
ratification number 208, is further amended by adding an
appropriately numbered item to read:
 "( ) The gross proceeds from the sales of hearing aids as
defined by item (5) of Section 40-25-20."
 B. This section shall take effect July 1, 1986.
SECTION 44
Vetoed by the Governor June 20, 1985, and sustained by the
General Assembly June 26, 1985.
SECTION 45
TO REPEAL SUBARTICLE 5 OF ARTICLE 11, CHAPTER 7 OF TITLE 20 OF
THE 1976 CODE RELATING TO FOSTER CARE AND SUBARTICLE 5 OF ARTICLE
13, CHAPTER 7 OF TITLE 20 RELATING TO FOSTER CARE REVIEW BOARD.
 Subarticle 5 of Article 11 and Subarticle 5 of Article 13 of
Chapter 7 of Title 20 of the 1976 Code are repealed.
SECTION 46
TO AMEND SECTION 6-6-30 OF THE 1976 CODE, RELATING TO THE SOUTH
CAROLINA POOLED INVESTMENT FUND, SO AS TO DELETE THE REQUIREMENT
THAT THE FUND OPERATE WITHOUT EXPENSE TO THE STATE.
 Section 6-6-30 of the 1976 Code, as added by Act 54 of 1983, is
amended to read:
 "Section 6-6-30. The Treasurer may sell to all political
subdivisions of the State participation units in the fund which
shall be legal investments for the subdivisions in addition to
the investments and deposits authorized in Sections 6-5-10,
12-45-220, and 11-1-60. The officials charged with custody of the
monies of the political subdivisions are authorized to invest in
the participation units of the fund only with the consent of
their governing bodies."
SECTION 47
TO AMEND SECTION 9-1-1160, AS AMENDED, OF THE 1976 CODE, RELATING
TO COLLECTION OF MEMBERS' CONTRIBUTIONS TO THE SOUTH CAROLINA
RETIREMENT SYSTEM, SO AS TO CLARIFY THE DUE DATE; TO AMEND
SECTION 9-1-1170, AS AMENDED, RELATING TO COLLECTION OF
EMPLOYERS' CONTRIBUTIONS TO THE RETIREMENT SYSTEM, SO AS TO ADD
INTEREST AT THE PRIME RATE TO LATE EMPLOYER CONTRIBUTIONS; TO
AMEND SECTIONS 9-3-540 AND 9-5-450, RELATING TO CONTRIBUTIONS OF
POLITICAL SUBDIVISIONS TO THE RETIREMENT SYSTEM, SO AS TO ADD
INTEREST AT THE PRIME RATE TO DELINQUENT PAYMENTS; TO AMEND
SECTION 9-11-210, AS AMENDED, RELATING TO COLLECTION OF MEMBERS'
CONTRIBUTIONS TO THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO
CLARIFY THE DUE DATE; AND TO AMEND SECTION 9-11-230, AS AMENDED,
RELATING TO COLLECTION OF EMPLOYER CONTRIBUTIONS TO THE POLICE
OFFICERS RETIREMENT SYSTEM, SO AS TO ADD INTEREST AT THE PRIME
RATE TO DELINQUENT EMPLOYERS' PAYMENTS.
 A. The first two paragraphs of Section 9-1-1160 of the 1976
Code, as last amended by Section 19, Part II, of Act 709 of 1976,
are further amended to read:
 "The collection of members' contributions must be as follows: 
 Each employer must cause to be deducted on each and every
payroll of a member the contributions payable by the member as
provided in this section and the chief fiscal officer of each
employer shall draw his warrant for the amount so deducted,
payable to the Retirement System, on a monthly basis, and shall
transmit the warrant together with a schedule of the
contributions on forms prescribed by the Board, which is due in
the office of the Retirement System no later than the last day of
the month following the close of each month for the preceding
month. If any employer fails to do so or arrears shall at any
time exist in making monthly remittances as required hereunder
and by the rules and regulations of the Board, the monthly
compensation of any person or officer of any employer charged
with the responsibility of making monthly payroll reports and
remittances to the System must be withheld by the employer in
each and every instance of failure to make the reports and
remittances until all reports and remittances required hereunder
and by the rules and regulations of the Board have been made. The
System shall furnish monthly to the disbursing officers of each
employer a statement of any failure to make payroll reports and
remittances and the names of the persons or officers failing to
make the reports and remittances.
Any person failing to transmit the contributions deducted in the
manner required in this section is guilty of a misdemeanor and
upon conviction must be punished by fine or imprisonment, or
both, in the discretion of the court."
 B. Item (2) of Section 9-1-1170 of the 1976 Code, as last
amended by subsection B of Section 19 of Part II of Act 709 of
1976, is further amended to read:
 "(2) The chief fiscal officer of each employer shall transmit
funds which are due in the Retirement System office no later than
the last day of the month on account of each employee who is a
member of the System an amount sufficient to cover the normal
contribution and the accrued liability contribution of each
member employed by the employer for the preceding month.
Delinquent payments under this section and Section 9-1-1160 must
be charged interest compounded annually based on the adjusted
prime rate charged by banks, rounded to the nearest full percent.
The effective date of the adjustment must be based on the
twelve-month period ending March thirty-first of any calendar
year and must be established by April fifteenth for an effective
date of the next July first. The adjusted prime rate charged by
banks means the average predominant prime rate quoted by
commercial banks to large businesses as determined by the Board
of Governors of the Federal Reserve System. The adjusted prime
rate used must be the adjusted prime rate charged by the bank
during March of that year; and".
 C. Item (3) of Section 9-1-1170 of the 1976 Code is amended to
read: 
 "(3) If within ninety days after request by the Board any
employer has not provided the System with the records and other
information required under this item or if the full accrued
amount of the contributions and interest provided for under this
section due from members employed by an employer or from an
employer other than the State has not been received by the System
from the chief fiscal officer of the employer within thirty days
after the last due date as provided in this item, then upon
notification by the Board to the State Treasurer and Comptroller
General as to the default of the employer as provided in this
item, any distributions which might otherwise be made to the
employer from any funds of the State must be withheld from the
employer until notice from the Board to the State Treasurer that
the employer is no longer in default."
 D. Section 9-3-540 of the 1976 Code is amended to read:
 "Section 9-3-540. Delinquent payments due under Section 9-3-520
must be charged interest compounded annually based on the
adjusted prime rate charged by banks, rounded to the nearest full
percent. The effective date of the adjustment must be based on
the twelve-month period ending March thirty-first of any calendar
year and must be established by April fifteenth for an effective
date of the next first day of July. The adjusted prime rate
charged by banks means the average predominant prime rate quoted
by commercial banks to large businesses as determined by the
Board of Governors of the Federal Reserve System. The adjusted
prime rate used must be the adjusted prime rate charged by the
bank during March of that year. Delinquent payments may be
recovered by action in a court of competent jurisdiction against
the political subdivision liable therefor or may, at the request
of the state agent, be deducted from any other monies payable to
such subdivision by any department or agency of the State. Upon
notification of the state agent to the State Treasurer and
Comptroller General as to a delinquency of any payments due under
Section 9-3-520 or of the failure of any political subdivision to
make required reports, any distributions which might otherwise be
made to the political subdivision from any funds of the State
shall be withheld from such political subdivision until notice
from the state agent to the State Treasurer that such political
subdivision is no longer in default in its payments or in filing
the required reports."
 E. Section 9-5-450 of the 1976 Code is amended to read:
 "Section 9-5-450. Delinquent payments due under Section 9-5-430
must be charged interest compounded annually based on the
adjusted prime rate charged by banks, rounded to the nearest full
percent. The effective date of the adjustment must be based on
the twelve-month period ending March thirty-first of any calendar
year and must be established by April fifteenth for an effective
date for the next July first. The adjusted prime rate charged by
bank~ mean~ the average predominant prime rate quoted by
commercial banks to large businesses as determined by the Board
of Governors of the Federal Reserve System. The adjusted prime
rate used must be the adjusted prime rate charged by the bank
during March of that year. Delinquent payments may be recovered
by action in a court of competent jurisdiction against the
political subdivision liable therefor or may, at the request of
the state agent, be deducted from any other monies payable to the
subdivision by any department or agency of the State.
 Upon notification of the state agent to the State Treasurer and
Comptroller General as to a delinquency of any payments due under
Section 9-5-430 or of the failure of any political subdivision to
make required reports, any distributions which might otherwise be
made to the political subdivision from any funds of the State
must be withheld from the political subdivision until notice from
the state agent to the State Treasurer that the political
subdivision is no longer in default in its payments or in filing
the required report."
 F. Item (7) of Section 9-11-210 of the 1976 Code, as amended by
Section 26, Part II of Act 219 of 1977, is further amended to
read: 
 "(7) The collection of members' contributions is as follows: 
 Each employer must cause to be deducted on each and every
payroll of a member the contributions payable by the member. In
determining the amount to be deducted in a payroll period, the
employer may consider the rate of compensation of the member on
the first day of the payroll period as continuing throughout the
payroll period and it may omit deduction from compensation for
any period less than a full payroll period if a police officer
was not a member on the first day of the payroll period. The
chief fiscal officer of each employer shall transmit the amounts
deducted to the System together with a schedule of the
contributions, on forms prescribed by the Board, to reach the
Retirement System on or before the last day of each month for the
preceding month. If any employer fails to do so, or if arrears
should at any time exist in making monthly payroll reports and
remittances as required hereunder and by the rules and
regulations of the Board, the compensation of any person or
officer of any employer charged with the responsibility of making
monthly payroll reports and remittances to the System must be
withheld by the employer in each instance of failure to make the
reports and remittances until all reports and remittances
required hereunder and by the rules and regulations of the Board
have been made. The System shall furnish monthly to the
disbursing officers of each employer a statement of any failure
to make payroll reports and remittances and the names of the
persons or officers failing to make the reports and remittances.
 Any person failing to transmit, in the manner and within the
period herein required, the contributions deducted is guilty of a
misdemeanor and must be punished by fine or imprisonment, or
both, in the discretion of the court."
 G. Section 9-11-230 of the 1976 Code, as amended by Section 26,
Part II, of Act 219 of 1977, is further amended to read:
 "Section 9-11-230. (1) At the beginning of each year commencing
on the first day of July, the Board shall certify to each
employer other than the State the amount of employer contribution
due the System. It is the duty of the chief fiscal officer of
each employer to transmit funds to reach the System on or before
the last day of each month or account of each member of the
System employed by the employer for the preceding month an amount
to cover the monthly contribution of the employer ac so
certified. The employer's contributions must be included in the
budget of the employer and levied and collected in the same
manner as any other taxes are levied and collected for the
payment of salaries of members. Delinquent payments under this
section and Section 9-11-210 must be charged interest compounded
annually based on the adjusted prime rate charged by banks,
rounded to the nearest full percent. The effective date of the
adjustment must be based on the twelve-month period ending March
thirty-first of any calendar year and must be established by
April fifteenth for an effective date of the next July first. The
adjusted prime rate charged by banks means the average
predominant prime rate quoted by the Board of Governors of the
Federal Reserve System. The adjusted prime rate must be the
adjusted prime rate charged by the bank during March of that
year.
 (2) If within ninety days after request therefor by the Board
any employer has not provided the System with the records and
other information required hereunder or if within thirty days
after the last due date, as herein provided, the full accrued
amount of the employer contributions due on account of members
employed by an employer has not been received by the System from
the chief fiscal officer of the employer, then upon notification
by the Board to the State Treasurer and Comptroller General as to
the default of the employer as herein provided, any distributions
which might otherwise be made to the employer from any funds of
the State must be withheld from the employer until notice from
the Board to the State Treasurer that the employer is no longer
in default."
SECTION 48
TO AMEND SECTIONS 9-1-1020, 9-1-1180, AND 9-11-210, ALL AS
AMENDED, OF THE  1976 CODE, RELATING TO CONTRIBUTIONS TO THE
SOUTH CAROLINA RETIREMENT SYSTEM AND THE POLICE OFFICERS
RETIREMENT SYSTEM, SO AS TO DELETE THE REFERENCE LIMITING TO
FORTY-FIVE DAYS THE AMOUNT OF ACCUMULATED ANNUAL LEAVE FOR WHICH
CONTRIBUTIONS MUST BE MADE; TO AMEND SECTIONS 9-1-1660, 9-9-100,
AND 9-11-130, ALL AS AMENDED, RELATING RESPECTIVELY TO SURVIVORS'
BENEFITS FOR THE SOUTH CAROLINA RETIREMENT SYSTEM, RETIREMENT
SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, AND THE POLICE
OFFICERS RETIREMENT SYSTEM, SO AS TO AUTHORIZE A MONTHLY BENEFIT
FOR THE BENEFICIARY OF A MEMBER WHO DIED WITH FIFTEEN YEARS'
SERVICE. 
 A. The fifth paragraph of Section 9-1-1020 of the 1976 Code, as
added by Act 372 of 1982, is amended to read:
 "Payments for unused sick leave and other single special
payments at retirement, except pay for unused annual leave, are
not compensation for which contributions are deductible."
 B. The second paragraph of Section 9-1-1180 of the 1976 Code, as
added by Act 372 of 1982, is amended to read:
 "Payments for unused sick leave and other single special
payments at retirement, except pay for unused annual leave, are
not compensation for which contributions are deductible."
 C. Section 9-1-1660 of the 1976 Code, as last amended by Act 26
of 1983, is further 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 member dies
after the attainment of age sixty-five 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 years' credit is
assumed to be sixty years of age.
 (2) Any 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 provide 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."
 D. Subsection (3) of Section 9-9-100 of the 1976 Code, as last
amended by Act 26 of 1983, is further amended to read:
 "(3) Notwithstanding anything herein to the contrary, if a
member dies after he has attained age sixty or has completed
fifteen years of creditable service and death occurs in service,
the person nominated by him to receive the lump sum amount in
subsection (1) above may elect to receive, in lieu of such lump
sum payment, an allowance for life in the same amount as if the
deceased member of the System had retired at the time of his
death and had named such person as contingent beneficiary under
Option 1 of Section 9-9-70. Any person otherwise eligible under
this subsection to elect to receive an allowance who had attained
age sixty-five or after the accumulation of thirty years of
creditable service or after attainment of age sixty with twenty
or more years of creditable service but who has received a refund
of the member's accumulated contribution under this section may,
upon repayment of the refund to the System in a single sum, make
the election provided for in this section. The monthly payments
under Option 1 to such person shall date from the time of the
repayment of the accumulated contributions to the System."
 E. Section 9-9-100 of the 1976 Code, as last amended by Act 386
of 1984, is amended by deleting subsection (5).
 F. Section 9-11-130 of the 1976 Code, as last amended by Act 26
of 1983, is further amended to read:
 "Section 9-11-130. (1) The person nominated by a member,
pursuant to Section 9-11-110, to receive a lump sum amount in the
event of his death before retirement may, if the member dies
after the attainment of age fifty-five or after the accumulation
of fifteen years of creditable service and death occurs in
service, elect to receive in lieu of the lump sum amount
otherwise payable under item (a) of subsection (1) of Section
9-11-110 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 1
under Section 9-11-150. For purposes of the benefit calculation,
a member under age fifty with less than thirty years' credit is
assumed to be fifty years of age.
 (2) The person nominated may also elect to receive in lieu of
the member's accumulated additional contributions, or a portion
of it, an allowance for life which must be the actuarial
equivalent of the amount of those contributions left on deposit
under the System."
 G. Item (12) of Section 9-11-210 of the 1976 Code, as added by
Act 372 of 1982, is amended to read:
 "(12) Payments for unused sick leave and other single special
payments at retirement, except pay for unused annual leave, are
not compensation for which contributions are deductible."
 H. The provisions of this section shall take effect July 1,
1985. 
SECTION 49
TO AMEND THE 1976 CODE BY ADDING SECTION 12-51-135 SO AS TO
PROVIDE THAT CLERKS OF COURTS MAY REMOVE WARRANTS ISSUED IN ERROR
BY THE TAX COMMISSION.
The 1976 code is amended by adding:
 "Section 12-51-135. If a warrant, which has been filed with the
clerk of court in any county, is determined by the Tax Commission
to have been issued and filed in error, the clerk of court, upon
notification by the Tax Commission, must remove the warrant from
its book." 
SECTION 50
TO AMEND SECTION 23-9-160 OF THE 1976 CODE, RELATING TO THE
EMERGENCY POWERS AND DUTIES OF THE STATE FIRE MARSHAL CONCERNING
AN UNSAFE BUILDING, THE PARTIES RESPONSIBLE FOR THE COSTS OF
CORRECTIVE ACTION TAKEN INCLUDING THE DEMOLITION OF TO BUILDING
IF SO ORDERED BY THE FIRE MARSHAL, AND THE LIEN FOR THESE COSTS
SO INCURRED, SO AS TO PROVIDE THAT THE COUNTY OR MUNICIPALITY IN
WHICH THE BUILDING IS LOCATED IS RESPONSIBLE FOR THESE COSTS
INSTEAD OF THE BUDGET AND CONTROL BOARD IF THESE COSTS ARE NOT
PAID BY THE PROPERTY OWNER, AGENT, OR PERSON IN CONTROL.
 Section 23-9-160 of the 1976 Code is amended to read:
 "Section 23-9-160. The decision of the State Fire Marshal
concerning unsafe structures is final in cases of emergency
which, in his opinion, involve imminent danger to human life or
health. He shall promptly cause the building, structure, or
portion of it to be made safe or demolished. For this purpose he
may immediately enter the structure or the land on which it
stands, or abutting land or structures, with such assistance and
at such cost as he may consider necessary. He may vacate adjacent
structures and protect the public by appropriate fences or those
other means as may be necessary and for this purpose may close a
public or private way. Costs incurred, if not paid by the
property owner, agent, or person in control, must be borne by the
municipality if the subject property is located in a municipality
or the county if the property is located outside municipal
limits. Prior to the corrective action by the State Fire Marshal,
written notice of it must be given to the county or municipality
in which the property is located. Upon payment of the costs, the
county or municipality shall acquire a lien on the property
involved to recover the costs, which must be recorded in the
office of the clerk of court or register of mesne conveyances in
the county where the property is located, and the lien created is
enforceable as a tax lien, junior in priority to any other prior
recorded lien or mortgage on the property."
SECTION 51
TO AMEND SECTIONS 9-1-1770, 9-9-100, 9-8-110, AND 9-11-120, ALL
AS AMENDED, OF THE 1976 CODE, RELATING TO THE STATE RETIREMENT
SYSTEM, SO AS TO PROVIDE FOR DEATH BENEFITS FOR BENEFICIARIES OF
RETIRED MEMBERS.
 A. Section 9-1-1770 of the 1976 Code, as last amended by Act 386
of 1984, is further amended by adding at the end:
 "Upon the death of a retired member on or after July 1, 1985,
there must be paid to the person nominated as the beneficiary on
the retirement application, if the person is living at the time
of the retired member's death, 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, and three
thousand dollars if the retired member had at least thirty 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." 
 B. Item 6 of Section 9-8-110 of the 1976 Code, as last amended
by Act 386 of 1984, is further amended by adding at the end:
 "Upon the death of a retired member on or after July 1, 1985,
there must be paid to the person nominated as the beneficiary on
the retirement application, if the person is living at the time
of the retired member's death, 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, and three
thousand dollars if the retired member had at least thirty years
of creditable service at the time of retirement." 
 C. Item (4) of Section 9-9-100 of the 1976 Code, as last amended
by Act 386 of 1984, is further amended by adding at the end:
 "Upon the death of a retired member on or after July 1, 1985,
there must be paid to the person nominated as the beneficiary on
the retirement application, if the person is living at the time
of the retired member's death, 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, and three
thousand dollars if the retired member had at least thirty years
of creditable service at the time of retirement."
 D. Section 9-11-120 of the 1976 Code, as last amended by Act 386
of 1984, is further amended by adding at the end:
 "Upon the death of a retired member on or after July 1, 1985,
there must be paid to the person nominated as the beneficiary on
the retirement application, if the person is living at the time
of the retired member's death, 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, and three
thousand dollars if the retired member had at least thirty 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." 
 E. The provisions of this section shall take effect July 1,
1985. 
SECTION 52
TO ESTABLISH CERTAIN COSTS OF COURT FEES TO BE USED FOR THE
PURPOSES OF FUNDING LOCAL CORRECTIONAL FACILITIES .
 A. Beginning on July 1, 1985, and continuously thereafter, each
conviction for an offense against the State must be assessed a
cost of court fee to fund local correctional facilities. Every
such conviction must, in addition to any other assessments
provided by law, be assessed a cost of court fee in accordance
with the following schedule: 
 (1) every conviction for an offense in the magistrates' courts
or municipal courts of this State must be assessed a cost of
court fee of seven dollars and seventy-five cents; the cost of
court fee set forth herein may not be suspended, except for
traffic offenses of an expired tag on a vehicle and an expired
inspection sticker, and must be collected by the municipal and
magistrate's court regardless of the amount of fine or bond
imposed.
 (2) every conviction for an offense in the general sessions
courts must be assessed:
   (a) a cost of court fee of seven dollars and seventy-five
cents where no criminal fine is imposed; or
   (b) an additional twenty percent of the total of a criminal
fine imposed.
 B. Each city recorder, mayor, magistrate or municipal clerk of
court, or other person who receives monies from the cost of court
assessments in criminal or traffic cases in the magistrates' or
municipal courts shall transmit all these monies to the municipal
treasurer of the municipality where he performs his official
duties. Each county clerk of court or other person who receives
monies from the cost of court assessments on fines in general
sessions courts shall transmit all these monies to the county
treasurer of the county.  These transmittals must be made no less
frequently than once each month and must be completed on or
before the fifteenth day of the month following the month being
reported. The city treasurer or county treasurer shall then
forward the total sum collected to the State Treasurer on or
before the twenty-fifth day of the month. Any municipality in
this State may enter into a mutual agreement with the county in
which it is located to provide for joint collections and
transmittals under those terms and conditions as the respective
bodies may agree. In these cases, receipts and transmittals
required by this section shall reflect, in the report of
transmittal to the State Treasurer, the collection and forwarding
of all monies from the named sources.
 C. The State Treasurer shall record, before the last day of that
same month, the total monthly submissions of monies from the
respective county and municipal treasurers and shall deposit
these monies into a separate and restricted account. This account
must be set aside for use by the State Budget and Control Board
in financing local correctional facility construction or
renovation proJects for additional bed space for convicted
offenders who receive sentences of greater than ninety days and
less than one year, and for use by the Board in funding the
additional operation costs of local correctional facilities due
to additional operating costs due to provisions of law requiring
that local governing bodies assume custody and control of
convicted offenders who receive sentences of greater than ninety
days and less than one year. No more than thirty-five percent of
the cost of court fees and additional fines as imposed pursuant
to subitems (a) and (b) of item (2) of subsection A of this
section received may be used for construction or renovation
purposes.
 D. This section shall take effect July 1, 1985.
SECTION 53
TO AMEND SECTION 41-35-120, AS AMENDED, OF THE 1976 CODE,
RELATING TO DISQUALIFYING CONDITIONS APPLICABLE TO STATE
EMPLOYMENT SECURITY BENEFITS, AS TO SUSPEND THROUGH JUNE 30,
1985, PROVISIONS WHICH PROVIDE FOR BENEFIT INELIGIBILITY IN
CERTAIN CASES WHERE REMUNERATION IS RECEIVED BY AN EMPLOYEE
SEPARATION.
 Item ( 7) of Section   41-35-120 of the 1976 Code, added by Act
323 of 1982, is suspended for the period July 1, 1985, or the
effective date of this Act, through June 30, 1986.
SECTION 54
TO AMEND THE 1976 CODE BY ADDING SECTION 12-53-55 SO AS TO ALLOW
THE TAX COMMISSION TO VERIFY INFORMATION SUBMITTED BY THE
RETIREMENT SYSTEM REGARDING DISABILITY PAYMENTS.
 The 1976 Code is amended by adding:
 "Section 12-53-55. The Tax Commission, upon request by the South
Carolina Retirement System, a division of the Budget and Control
Board, shall verify information contained on individual income
tax returns to assist the System in ascertaining if any person
receiving disability benefits has gainful employment for which he
is receiving compensation. The South Carolina Retirement System
shall furnish to the Commission any information requested by the
Commission which is necessary to verify such information."
SECTION 55
TO AMEND SECTION 20-7-5010 OF THE 1976 CODE, RELATING TO THE
ESTABLISHMENT OF THE CHILDREN'S TRUST FUND, SO AS TO DELETE THE
RESTRICTION THAT THE FUND IS NOT AUTHORIZED TO RECEIVE FEDERAL
FUNDS, AND TO AMEND SECTION 20-7-5050, RELATING TO THE
AVAILABILITY OF MONIES DEPOSITED IN THE TRUST FUND, SO AS TO
INCREASE FROM FIFTY TO SEVENTY-FIVE THE PERCENTAGE OF THE FUND
THAT MAY BE DISBURSED UPON AUTHORIZATION OF THE BOARD OF TRUSTEES
AND TO ALLOW THE BOARD TO DEDUCT OPERATING EXPENSES FROM THAT
AMOUNT.
 A. Section 20-7-5010 of the 1976 Code, as added by Act 347 of
1984, is amended to read:
 "Section 20-7-5010.  There is established the Children's Trust
Fund of South Carolina, an eleemosynary corporation, the
resources of which shall stimulate innovative prevention and
treatment programming to meet critical needs of South Carolina's
children through the awarding of grants to private nonprofit
organizations. The Trust Fund shall accept gifts, bequests, and
grants from any person or foundation. The Trust Fund shall
supplement and augment, not take the place of services provided
by state agencies. No state agency is eligible to receive funds
under this article. The Board of Trustees for the Trust Fund
shall carry out activities necessary to administer the fund
including assessing service needs and gaps, soliciting proposals
to address identified service needs, and establishing criteria
for the awarding of grants."
 B. The first paragraph of Section 20-7-5050, as added by Act 347
of 1984, is amended to read:
 "Until the assets of the Trust Fund exceed five million dollars,
not more than seventy-five percent of the amount deposited in the
Trust Fund each year from contributions plus all earnings from
the investment of monies of the Trust Fund credited during the
previous fiscal year, after allowances for operating expenses, is
available for disbursement upon the authorization of the board of
trustees."
SECTION 56
 Vetoed by the Governor June 20, 1985, and sustained by the
General Assembly June 26, 1985.
SECTION 57
TO AMEND SECTION 56-9-330, AS AMENDED, OF THE 1976 CODE, RELATING
TO THE FEE FOR THE FURNISHING OF ABSTRACTS OF OPERATING RECORDS
BY THE DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION, SO AS TO
INCREASE THE FEE FOR A CERTIFIED ABSTRACT OF THE DRIVING RECORD
OF ANY PERSON SUBJECT TO THE PROVISIONS OF THIS CHAPTER FROM
THREE DOLLARS TO FOUR DOLLARS AND TO ESTABLISH A FEE OF THREE
DOLLARS FOR COPIES OF ACCIDENT REPORTS.
 Section 56-9-330 of the 1976 Code, as last mended by Section 9
of Act 738 of 1976, is further amended to read:
 "Section 56-9-330. (1) The Department shall upon request and the
payment of a fee of four dollars furnish any person a certified
abstract of the operating record of any person subject to the
provisions of this chapter, which abstract shall also fully
designate the motor vehicles, if any, registered in the name of
that person, and, if there shall be no record of any conviction
of that person for violating any laws relating to the operation
of a motor vehicle or of any injury or damage caused by that
person, the Department shall so certify. These abstracts shall
not be admissible as evidence in any action for damages or
criminal proceedings arising out of motor vehicle accidents. (2)
The Department shall upon request and the payment of a fee of
three dollars furnish any person a copy of a vehicle accident
report." 
SECTION 58
TO DESIGNATE SECTION 6A OF PART II OF ACT 517 OF 1980, RELATING
TO CERTAIN FEES OF PROBATIONERS AND PAROLEES AS SECTION 24-21-80
OF THE 1976 CODE, AND TO AMEND SECTION 24-21-80 SO AS TO INCREASE
THESE FEES, TO PROVIDE FOR CERTAIN OTHER SUPERVISORY FEES, AND
MAKE CERTAIN OF THESE FEES ALSO APPLY TO INMATES.
 A. Section 6A of Part II of Act 517 of 1980 is designated as
Section 24-21-80 of the 1976 Code and is amended to read:
 "Section 24-21-80. Every person granted parole by the Parole and
Community Corrections Board (Board), and every adult placed on
probation by a court of competent jurisdiction, must be required
to pay two hundred forty dollars a year toward offsetting the
cost of his supervision for so long as he remains under
supervision. This fee is due and payable on the date of
sentencing or date of parole and each anniversary thereafter for
the duration of the supervision period. This fee must be remitted
for credit to the State General Fund. The payment of the fee must
be a condition of parole or probation and a delinquency of two
months or more in making payments shall operate as a revocation
of parole or probation rendering the violator liable to serving
out any remaining part of his sentence.
 Provided, However, that if the probationer is placed under
intensive supervision by a court of competent jurisdiction, or if
the Board places a parolee under intensive supervision, or if the
Department places an inmate under intensive supervision who is
participating in the Supervised Furlough Program under
supervision as a result of a prison overcrowding emergency, the
probationer, parolee, or inmate is required to pay ten dollars
each week for the duration of intensive supervision in lieu of
the two hundred forty dollars per year fee. Fees derived from
persons under intensive supervision must be retained in aggregate
by the Board to support these supervisory efforts and fees
collected in prior years from this source be retained and carried
forward to continue the supervisory effort. Offenders sentenced
for the offense of murder, kidnapping, voluntary manslaughter,
assault and battery with intent to kill, criminal sexual conduct
in any degree, armed robbery, arson, or trafficking in drugs
pursuant to Section 44-53-370(e) are ineligible for participation
in the intensive supervision program. Provided, However, that the
Board, in the cases of parolees, or a court of competent
jurisdiction, in the case of probationers, or the Department, in
the case of an inmate, may exempt the probationer, parolee, or
inmate from payment of any part or all of the yearly or weekly
fee during any part or all of the term where the Board, the
court, or the Department determines that these payments would
work a severe hardship on the parolee. probationer, or inmate.
Delinquencies of two months or more in payment of any reduced fee
shall operate in the same manner as delinquencies for the full
amount."
 B. This section shall take effect July 1, 1985.
SECTION 59
TO AMEND ACT 146 OF 1979, AS AMENDED, RELATING TO THE MANDATORY
DATES FOR SINE DIE ADJOURNMENT OF THE GENERAL ASSEMBLY, SO AS TO
ESTABLISH 5:00 P.M. ON THE FIRST THURSDAY IN JUNE AS THE TIME FOR
ADJOURNING SINE DIE AND TO CHANGE THE DATE FOR THE HOUSE OF
REPRESENTATIVES TO GIVE THE GENERAL APPROPRIATIONS BILL THIRD
READING WITHOUT EXTENDING THE DATE OF SINE DIE ADJOURNMENT FROM
APRIL FIFTEENTH TO MARCH THIRTY-FIRST. 
Section 2 of Act 146 of 1979, as last amended by Part II, Section
38 of Act 151 of 1983, is further amended to read:
 "Section 2. The regular annual session of the General Assembly
shall adjourn sine die each year not later than 5:00 p.m. on the
first Thursday in June. In any year that the House of
Representatives fails to give third reading to the annual General
Appropriation Bill by March thirty-first, the date of sine die
adjournment is extended by one statewide day for each statewide
day after March thirty-first that the House of Representatives
fails to give the bill third reading. The session may also be
extended by concurrent resolution adopted by a two-thirds vote of
both the Senate and House of Representatives. During the time
between 5:00 p.m. on the first Thursday in June and the extended
sine die adjournment date, as set forth herein, no legislation or
other business may be considered except the General Appropriation
Bill and any matters approved for consideration by a concurrent
resolution adopted by two-thirds vote in both houses."
SECTION 60
TO AMEND ACT 145 OF 1983, RELATING TO THE CREATION OF
CORPORATIONS BY THE SOUTH CAROLINA JOBS-ECONOMIC DEVELOPMENT
AUTHORITY, SO AS TO ALLOW THE AUTHORITY TO MAKE GRANTS OR LOANS
TO, OR GUARANTEES FOR, THE BENEFIT OF CERTAIN NOT-FOR-PROFIT
CORPORATIONS ORGANIZED BY THE AUTHORITY.
 Section 25 of Act 145 of 1983 is amended by adding the following
paragraphs at the end:
 "The authority may make grants or loans to, or make guarantees
for, the benefit of any not-for-profit corporation which the
authority has caused to be formed whose Articles of Incorporation
require that its directors be elected by members of the authority
and all assets of which, upon dissolution, must be distributed to
the authority if it is in existence or, if it is not in
existence, then to the State of South Carolina.
 These grants, loans, or guarantees may be made upon a
determination by the authority that the receiving not-for-profit
corporation is able to carry out the purposes of this act and on
the terms and conditions imposed by the authority.
 Any guarantee made by the authority shall not create an
obligation of the State or its political subdivisions or be a
grant or loan of the credit of the State or any political
subdivision. Any guarantee issued by the authority must be a
special obligation of it. Neither the State nor any political
subdivision is liable on any guarantee nor may they be payable
out of any funds other than those of the authority and any
guarantee issued by the authority shall contain on its face a
statement to that effect."
SECTION 61
TO AMEND SECTION 9 OF PART II OF ACT 512 OF 1984, AS AMENDED,
RELATING TO THE SOUTH CAROLINA EDUCATION IMPROVEMENT ACT OF 1984,
SO AS TO ALLOW SCHOOL DISTRICTS TO APPLY FOR WAIVER FROM THE
MAINTENANCE OF FINANCIAL EFFORT REQUIREMENT AND TO REQUIRE THE
COUNTY AUDITOR TO ESTABLISH A MILLAGE RATE TO MAINTAIN THE
MINIMUM EFFORT.
 Section 2 of Division V of Section 9 of Part II of Act 512 of
1984 is amended to read:
 "Section 2. Unless otherwise authorized or provided herein,
school district boards of trustees or any other appropriate
governing body of a school district shall maintain at least the
level of per pupil financial effort established as provided in
Fiscal Year 1983-84. Beginning 1985-86 local financial effort for
noncapital programs shall be adjusted for an inflation factor
estimated by the Division of Research and Statistics.
 Thereafter, school district boards of trustees or other
governing bodies of school districts shall maintain at least the
level of financial effort per pupil for noncapital programs as in
the prior year adjusted for an inflation factor estimated by the
Division of Research and Statistics. The county auditor shall
establish a millage rate so that the level of financial effort
per pupil for noncapital programs adjusted for an inflation
factor estimated by the Division of Research and Statistics is
maintained as a minimum effort. No school district which has not
complied with this section shall receive funds hereunder. School
district boards of trustees may apply for a waiver to the State
Board of Education from the requirements of this section if (1)
the district has experienced a loss in revenue because of
reduction in assessed valuation or property or has had a
significant increase in 135 average daily membership, (2) the
district has experienced
insignificant growth in revenue collections from the previous
year. No school district shall be eligible to apply for a waiver
for more than two consecutive years."
SECTION 62
TO AMEND ITEM (4) OF SECTION 12-21-2420 OF THE 1976 CODE,
PERTAINING TO THE ADMISSIONS TAX, SO AS TO EXEMPT THE PROCEEDS OF
CARNIVALS, CIRCUSES, AND COMMUNITY FAIRS WHEN SUCH PROCEEDS ARE
DONATED TO A HOSPITAL.
 Item (4) of Section 12-21-2420 of the 1976 Code is amended to
read: 
 "(4) On admissions charged by any eleemosynary and nonprofit
corporation or organization organized exclusively for religious,
charitable, scientific, or educational purposes; provided, that
the license tax herein levied and assessed shall be collected and
paid upon all paid admissions to all athletic events of any
institution of learning above the high school level; provided,
however, that carnivals, circuses, and community fairs operated
by eleemosynary or nonprofit corporations or organizations
organized exclusively for religious, charitable, scientific, or
educational purposes shall not be exempt from the assessment and
collection of admissions tax on charges for admission for the use
of or entrance to rides, places of amusement, shows, exhibits,
and other carnival facilities, but not to include charges for
general gate admissions except when the proceeds of any such
carnival, circus, or community fair are donated to a hospital;
provided, further, that no admission tax shall be charged or
collected by reason of any charge made to any member of a
nonprofit organization or corporation for the use of the
facilities of the organization or corporation of which he is a
member."
SECTION 63
TO AMEND SECTION 14-3-650 OF THE 1976 CODE, RELATING TO THE
FILING OF CERTAIN NOTICES OF INTENT TO APPEAL, SO AS TO CHANGE
THE FEE FOR FILING SUCH NOTICE FROM THREE DOLLARS TO FIFTY
DOLLARS.
 Section 14-3-650 of the 1976 Code is amended to read:
 "Section 14-3-650. In all appeals, other than in criminal cases,
the appellant shall, when the return is filed with the clerk of
the Supreme Court, pay to the clerk a fee of fifty dollars for
docketing the cause and keeping counsel advised as to the time
when the cause is to be called for hearing as the court may
provide in its rules. Such fee shall be taxed against the losing
party as a part of the costs and disbursements in the Supreme
Court."
SECTION 64
TO AMEND SECTION 11-11-430 OF THE 1976 CODE, RELATING TO THE
LIMITATION OF GENERAL REVENUES WHICH CAN BE USED FOR DEBT
SERVICE, SO AS TO REDUCE THE FIVE PERCENT LIMIT BEGINNING IN
FISCAL YEAR 1985-86 BY ONE-HALF OF ONE PERCENT EACH FISCAL YEAR
UNTIL A NEW LIMIT OF TWO AND ONE-HALF PERCENT IS ACHIEVED IN
FISCAL YEAR 1989-90 AND THEREAFTER.
 Subsection (C) of Section 11-11-430 of the 1976 Code, as added
by Section 3 of Act 487 of 1984, is amended to read:
 "(C) The issuance of general obligation bonds of the State must
be limited so that the maximum annual debt service on all general
obligation bonds of the State (excluding highway bonds, state
institution bonds, tax anticipation notes, and bond anticipation
notes) may not exceed five percent of the general revenues of the
State for the fiscal year next preceding (excluding revenues
which are authorized to be pledged for state highway bonds and
state institution bonds). Beginning with fiscal year 1985-86, the
limitation on debt service provided by this subsection shall
decrease by one-half of one percent each fiscal year until the
limitation reaches two and one-half percent in fiscal year
1989-90 and thereafter."
SECTION 65
TO AMEND SECTIONS 9-1-1620 AND 9-11-150, BOTH AS AMENDED, OF THE
1976 CODE, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM AND
THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PERMIT A
BENEFICIARY TO SELECT AN OPTIONAL PAYMENT PLAN IF THE MEMBER DIES
BE~ORE THE FIRST PAYMENT IS DUE.
 A. Section 9-1-1620 of the 1976 Code, as last amended by Act 381
of 1984, is further amended to read:
 "Section 9-1-1620. Until the first payment on account of a
retirement allowance becomes normally due, any member or
beneficiary may elect, by filing with the System, to convert the
retirement allowance otherwise payable on his account after
retirement into a retirement allowance of equivalent actuarial
value under one of the optional forms named below, the retirement
allowance under option selected being due and payable on the date
of retirement:
 Option 1. A reduced retirement allowance payable during the
retired member's life, with the provision that if he dies within
ten years from his retirement date, an amount equal to his
accumulated contributions at retirement, less one one hundred
twentieth thereof for each month for which he has received a
retirement allowance payment, shall be paid to his legal
representatives or to such person as he shall nominate by written
designation duly acknowledged and filed with the Board;
 Option 2. A reduced retirement allowance payable during the
retired member's life, with the provision that it shall continue
after his death to and for the life of the beneficiary nominated
by him by written designation duly acknowledged and filed with
the Board at the time of retirement, if such person survives him;
 Option 3. A reduced retirement allowance payable during the
retired member's life, with the provision that it shall continue
after his death al one-half the rate paid to him to and for the
life of the beneficiary nominated by him by written designation
duly acknowledged and filed with the Board at the time of
retirement, if such person survives him; or
 Option 4. A retirement allowance of such amount that, with his
benefit under Title II of the Federal Social Security Act, he
will receive, so far as possible, approximately the same amount
per year before and after the earliest age at which he becomes
eligible, upon application therefor, to receive a Social Security
benefit. A member who makes an election in accordance with this
option shall be deemed to have made a further election of Option
1 of this section;
 Option 5. A member may elect either Option 2 or 3 with the added
provision that, in the event the designated beneficiary
predeceases the member, the retirement allowance payable to the
member after the designated beneficiary's death shall be equal to
the retirement allowance which would have been payable had the
member not elected the option.
 The Board is authorized to approve a five-year pay-out plan
developed by the actuary on the basis of the total retirement
allowance for surviving beneficiaries, other than a spouse."
 B. Section 9-11-150 of the 1976 Code, as last amended by Act 381
of 1984, is further amended to read:
 "Section 9-11-150. Until the first payment on account of a
retirement allowance becomes normally due, any member or
beneficiary may elect, by filing with the System, to convert the
retirement allowance otherwise payable on his account after
retirement into a retirement allowance of equivalent value under
one of the optional forms named below: 
 Option 1. A reduced retirement allowance payable during the
retired member's life, with the provision that the reduced
allowance shall continue after his death to and for the life of
the beneficiary nominated by him by written designation duly
acknowledged and filed with the Board at the time of retirement,
if such person survives him; or
 Option 2. A reduced retirement allowance payable during the
retired member's life, with the provision that the reduced
allowance shall continue after his death at one-half the rate
paid to him to and for the life of the beneficiary nominated by
him by written designation duly acknowledged and filed with the
Board at the time of retirement, if such person survives him;
 Option 3. A retirement allowance of such amount that, with his
benefit under Title II of the Federal Social Security Act, he
will received so far as possible, approximately the same amount
per year before and after the earliest age at which he becomes
eligible, upon application therefor, to receive a Social Security
benefit. A member who makes an election in accordance with this
option shall be entitled to a lump sum to be paid on death as
provided in subsection (2) of Section 9-11-110; 
 Option 4. A member may elect either Option 1 or 2 with the added
provision that, in the event the designated beneficiary
predeceases the member, the retirement allowance payable to the
member after the designated beneficiary's death shall be equal to
the retirement allowance which would have been payable had the
member not elected the option.
 The Board is authorized to approve a five-year pay-out plan
developed by the actuary on the basis of the total retirement
allowance for surviving beneficiaries, other than a spouse."
SECTION 66
TO AMEND ACT 111 OF 1977, AS AMENDED, RELATING AUCTIONS AND
AUCTIONEERS, SO AS TO EXEMPT SALES SPONSORED BY PUREBRED
LIVESTOCK (BEEF CATTLE, SWINE, HORSES, AND SHEEP) ASSOCIATIONS
AND PUREBRED LIVESTOCK BREEDER FARM SALES AND TO EXEMPT PUREBRED
LIVESTOCK AUCTIONEERS FROM CERTAIN REQUIREMENTS.
 Section 2 of Act 111 of 1977 is amended by adding at the end: 
 "(7) Sales sponsored by purebred livestock (beef cattle, swine,
horses, and sheep) associations an purebred livestock breeder
farm sales. Purebred livestock auctioneers, upon proof to the
commission that they are qualified purebred livestock
auctioneers, are exempt from the exam and bonding requirement
provided in this act for the purpose of conducting purebred
livestock auctions."
SECTION 67
TO AMEND SECTION 12-37-220, AS AMENDED, OF THE 1976 CODE,
RELATING TO AD VALOREM TAX EXEMPTIONS SO AS TO EXEMPT
SELF-PROPELLED FARM MACHINERY AN EQUIPMENT.
 Item (14) of subsection B of Section 12-37-220 of the 1976 Code
is amended to read:
 "(14) All farm machinery and equipment including self-propelled
farm machinery and equipment except for motor vehicles licensed
for use on the highways.
 For the purpose of this section 'self-propelled farm machinery
and equipment' means farm machinery or equipment which contains
within itself the mean for its own locomotion."
SECTION 68
TO AMEND SECTION 40-47-160, AS AMENDED, OF THE 1976 CODE,
RELATING TO RECIPROCAL CERTIFICATION OF PHYSICIANS AND SURGEONS,
SO AS TO PROVIDE THAT CERTAIN PROVISIONS OF THE SECTION SHALL NOT
APPLY TO A PHYSICIAN OR SURGEON WHO HAS MADE AN APPLICATION FOR
LICENSURE PRIOR TO JUNE 1, 1985.
 Section 40-47-160 of the 1976 Code, as amended by an Act of 1985
bearing ratification number 138, is further amended to read: 
 "Section 40-47-160. (1) The Board may grant or refuse
certifications to licentiates of the National Board of Medical
Examiners or of the National Board of Examiners for Osteopathic
Physicians and Surgeons without further examination and may make
and establish all necessary rules and regulations for the
reciprocal recognition of certificates issued by other state
boards having an equal standing. This section shall only apply to
doctors of osteopathy who graduated after January 1, 1955, from a
school approved by the American Osteopathic Association and now
hold unlimited license. Graduates before January 1, 1955, may
make application and appear before the Board of Medical Examiners
for interview with each applicant to be considered for approval
on basis of his training and experience.
 (2) The State Board of Medical Examiners shall not grant
reciprocity or issue a limited or temporary or permanent license
to a licensed physician or an intern of another state of the
United States whose license is currently restricted in any way or
who is currently on a probationary status in that state.
 The State Board of Medical Examiners shall not grant reciprocity
or issue a limited or temporary or permanent license to a
licensed physician or an intern of another state of the United
States who currently has disciplinary action pending against him
in that state. The provisions of subsection (2) of this section
shall not apply to any physician or surgeon who has made
application for licensure prior to June 1, 1985."
SECTION 69
TO AMEND AN ACT OF 1985 BEARING RATIFICATION NUMBER 6, RELATING
TO, AMONG OTHER THINGS, THE EXTENSION OF THE TIME FOR THE FILING
OF APPLICATIONS REQUIRED BY SECTION 12-43-220 OF THE 1976 CODE
(FOR SPECIAL LAND USE VALUATION) FOR THE TAX YEAR 1984, SO AS TO
EXTEND THAT TIME FURTHER AND TO INCLUDE THE TAX YEAR 1985.
 Subsection (B) of Section 2 of an act of 1985 bearing
ratification number 6 is amended to read:
 "(B) The time for the filing of applications required by subitem
(3) of item (d) of Section 12-43-220 for the tax years 1984 and
1985 is extended until August 1, 1985."
SECTION 70
TO PROVIDE THAT THE STATE BUDGET AND CONTROL BOARD SHALL DEVELOP
AND IMPLEMENT A POLICY WHEREBY THIS STATE AND ITS AGENCIES,
DEPARTMENTS, INSTITUTIONS OF HIGHER LEARNING, BOARDS,
COMMISSIONS, AND COMMITTEES IN PROCURING NECESSARY PRODUCTS TO
PERFORM THEIR ASSIGNED DUTIES AND FUNCTIONS MUST OBTAIN PRODUCTS
MADE, MANUFACTURED, OR GROWN IN SOUTH CAROLINA IF AVAILABLE OR
MUST OBTAIN PRODUCTS MADE, MANUFACTURED, OR GROWN IN THE UNITED
STATES IF SIMILAR SOUTH CAROLINA PRODUCTS ARE NOT AVAILABLE
BEFORE ANY FOREIGN MADE, MANUFACTURED, OR GROWN PRODUCTS MAY BE
PROCURED.
 The State Budget and Control Board by regulation shall develop
and implement a policy whereby this State, and its agencies,
departments, institutions of higher learning, boards,
commissions, and committees in procuring necessary products to
perform their assigned duties and functions must obtain products
made, manufactured, or grown in South Carolina if available or
must obtain products made, manufactured, or grown in the United
States if similar South Carolina products are not available
before any foreign made, manufactured, or grown products may be
procured.
SECTION 71 TO AMEND THE 1976 CODE BY ADDING SECTION 56-3-785 SO
AS TO AUTHORIZE THE DEPARTMENT OF HIGHWAYS AND PUBLIC
TRANSPORTATION TO ISSUE A PERMANENT LICENSE PLATE TO CERTAIN
OWNERS OF TRAILERS OR SEMI-TRAILERS AND TO PROVIDE AN ANNUAL FEE.
 The 1976 Code is amended by adding:
 "Section 56-3-785. (A) The Department of Highways and Public
Transportation may issue, upon proper application being submitted
at the request of the owner of twenty-five trailers or
semi-trailers or one hundred or more for-hire trailers, as
defined in Section 56-3-20, a registration and license plate on a
permanent basis. The license may be transferred as provided
Section 56-3-1260.
 (B) The annual fee for the license is the same as that of a
regular trailer license or that of a utility trailer license
whichever is applicable. After the initial issuance of the
license the owner shall remit to the Department the fees
requested for yearly registration renewal.
 (C) The license plate must be the same size of regular license
plates and design as specified by the Department."
SECTION 72
TO AMEND ARTICLE 5, CHAPTER 35, OF TITLE 12 OF THE 1976 CODE BY
ADDING SECTION 12-35-519 SO AS TO LIMIT TO THREE HUNDRED DOLLARS
THE MAXIMUM SALES TAX ON SALES OF MUSICAL INSTRUMENTS AND OFFICE
EQUIPMENT TO CHURCHES, TO PROVIDE THE PROCEDURE FOR CLAIMING THE
LIMITATION, AND PROVIDE A PENALTY.
 A. Article 5, Chapter 35, of Title 12 of the 1976 Code is
amended by adding:
 "Section 12-35-519. The maximum tax levied under this chapter,
with respect to the sale of each musical instrument or each piece
of office equipment purchased by a religious organization exempt
from income taxes under Internal Revenue Code Section 501(c) (3),
is three hundred dollars if the musical instrument or office
equipment is located on church property and used exclusively for
the organization's exempt purpose.
 The religious organization shall furnish an affidavit to the
seller who shall retain the affidavit for inspection by officials
or agents of the Commission. The affidavit required by this
section must be on forms prescribed by the Tax Commission.
Persons who falsify or conspire to falsify the affidavit
prescribed in this section are subject to the penalties
prescribed by item (24) of Section 12-35-550 in addition to all
other penalties provided in this chapter." 
 B. The provisions of this section are effective for all sales
after June 30, 1985.
SECTION 73
TO AMEND AN ACT OF 1985 BEARING RATIFICATION NUMBER 188, RELATING
TO THE SOUTH CAROLINA SAVINGS ASSOCIATION ACT, SO AS TO DIRECT
THE STATE BOARD OF FINANCIAL INSTITUTIONS TO CONDUCT THE STUDY
REQUIRED BY THE ACT ON AN ANNUAL BASIS, TO DELETE THE REQUIREMENT
THAT ITS FINDINGS BE SUBMITTED TO THE GENERAL ASSEMBLY NO LATER
THAN JANUARY 31, 1986, AND EVERY YEAR THEREAFTER, AND TO REQUIRE
THAT THE FINDINGS BE INCLUDED IN ITS ANNUAL REPORT TO THE GENERAL
ASSEMBLY.
 Section 10 of an act of 1985 bearing ratification number 188 is
amended to read:
 "Section 10. The State Board of Financial Institutions is
directed to conduct an annual study as to the capital reserve
position of all financial institutions and intermediaries subject
to its supervision and to report its findings to the General
Assembly, including recommended legislation, if any, in its
annual report to the General Assembly."
SECTION 74
TO AMEND SECTIOn 8-11-80, AS AMENDED, OF THE 1976 CODE, RELATING
TO PAYROLL DEDUCTIONS BY STATE EMPLOYEES FOR INSURANCE, SO AS TO
REDUCE FROM FIVE HUNDRED TO TWO HUNDRED FIFTY THE NUMBER OF
EMPLOYEES WHICH ARE REQUIRED TO PARTICIPATE BEFORE DEDUCTIONS ARE
ALLOWED.
 Section 8-11-80 of the 1976 Code, as last amended by Section 21
of Part II of Act 644 of 1978, is further amended to read:
 "Section 8-11-80. The Comptroller General may, upon request of
employees of the State, make deductions from the compensation of
the employees for the payment of premiums for life, hospital, and
other types of insurance plans as are in force and a member of
the deduction system on the effective date of this act. The
Comptroller General may not make deductions where deductions are
made for less than two hundred fifty state employees in any
particular plan. The Comptroller General shall pay over to the
insurance company, or its agents designated to receive the funds,
all amounts so collected or withheld. No part of the cost of the
insurance or expenses incidental to the payroll deduction must be
borne by the State, nor must any liability whatsoever be incurred
by the State in connection with the deduction, nor may the State
in any way aid insurance companies in the solicitation of
policies by expressly or implicitly endorsing any particular
insurance plan or company." 
SECTION 75
TO AMEND ACT 82 OF 1977, AS AMENDED, RELATING TO THE MEMBERSHIP
OF THE SOUTH CAROLINA INTERAGENCY COUNCIL ON PUBLIC
TRANSPORTATION, SO AS TO PROVIDE A MEMBER TO BE APPOINTED BY THE
GOVERNOR UPON THE RECOMMENDATION OF THE STATE HEALTH AND HUMAN
SERVICES FINANCE COMMISSION.
 A . Items (f) and (g) of Section 8 of Act 82 of 1977, as last
amended by Act 140 of 1981, are further amended to read:
   "(f) one person appointed by the Governor upon the
recommendation of the South Carolina Association of Counties;
   (g) one person appointed by the Governor representing the
Regional Transportation Authorities;".
 B.   Section 8 of Act 82 of 1977, as la~t amended by Act 140 of
1981, is further amended by adding:
   "(h) one person appointed by the Governor upon the
recommendation of the State Health and Human Services Finance
Commission."
SECTION 76
TO AMEND SECTION 12-7-20, AS AMENDED, OF THE 1976 CODE, RELATING
TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO
INCLUDE WITHIN THE DEFINITION OF THE INTERNAL REVENUE CODE
ADOPTED FOR STATE INCOME TAX PURPOSES FEDERAL PROVISIONS RELATING
TO CONTEMPORANEOUS RECORDKEEPING AND DEPRECIATION OF
AUTOMOBILES.
 Item (11) of Section 12-7-20 of the 1976 Code, as amended by
Section 2 of an act of 1985 bearing ratification number 146, is
further amended to read:
 "(11) 'Internal Revenue Code' means the Internal Revenue Code of
1954 as amended through December 31, 1984, and as amended by
Public Law 99-44."
SECTION 77
TO AUTHORIZE THE COMPTROLLER GENERAL TO HONOR IN THE CURRENT
FISCAL YEAR VOUCHERS FOR AIRFARE AND REGISTRATION FEES IN
CONNECTION WITH MEETINGS IN JULY AND AUGUST IN THE NEXT FISCAL
YEAR IF ADVANCE PAYMENT RESULTS IN A SAVINGS AND AGENCY FUNDS ARE
AVAILABLE.
 The Comptroller General is authorized to honor vouchers in the
current fiscal year for advance payment of airfares and
registration fees for official travel to meetings and conferences
in July and August of the next fiscal year if the advance payment
results in a savings and funds are available in the requesting
agency's current budget.
SECTION 78
TO AMEND SECTION 8-11-610, AS AMENDED, OF THE 1976 CODE, RELATING
TO ANNUAL LEAVE FOR STATE EMPLOYEES, SO AS TO PROVIDE THAT AN
EMPLOYEE OF A STATE AGENCY WHICH ALLOWED AN ACCUMULATION OF
UNUSED ANNUAL LEAVE IN EXCESS OF FORTY-FIVE DAYS ON JUNE 2, 1972,
MAY CARRY FORWARD THE AMOUNT HE HAD ACCUMULATED AS OF THAT
DATE.
 The first and second paragraphs of Section 8-11-610 of the 1976
Code are amended to read:
 "Any permanent full-time state employee is entitled to annual
leave with pay, which is computed as follows:
   For the first ten years of state service, he shall earn one
and one-fourth working days' leave for each month of full-time
employment a year. After ten years he shall earn a bonus of one
and one-fourth working days' annual leave for each year of
continuous service; however, the combined regular and bonus
earnings shall not exceed thirty days in any one year. No
employee is required to use all of his annual leave in any one
year. Any unused annual leave may be accumulated, not to exceed
forty-five days.  Any employee of a department which allowed an
accumulation in excess of forty-five days, who, as of June 2,
1972, had accumulated annual leave in excess of forty-five days
may carry over and retain the excess leave which is the maximum
amount the employee may carry over into future years. If the
employee subsequently reduces the amount of the leave carried
over, the reduced amount, if in excess of forty-five days, is the
employee's maximum carry-over into future years. If the employee
further reduces the amount of the leave carried over to
forty-five days or less, forty-five days is the maximum amount of
unused annual leave the employee may accumulate. It is at the
discretion of the department heads to determine the maximum
number of consecutive days any employee may have in any one
period of leave. The total number of days of annual leave used in
any one calendar year may not exceed thirty days." 
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