agency, institutions or department to file a quarterly allocations plan and is further authorized to restrict the rate of expenditures of the agency, institution or department if the Board determines that a deficit may occur. The bonds of state officials violating the terms of this section shall be held liable therefor, unless the Budget and Control Board has been advised of, and officially recognizes the necessity for such deficit. 129.7. All Federal Funds received shall be deposited in the State Treasury, if not in conflict with Federal regulations, and withdrawn therefrom as needed, in the same manner as that provided for the disbursement of state funds. If it shall be determined that federal funds are not available for, or cannot be appropriately used in connection with, all or any part of any activity or program for which state funds are specifically appropriated in this Act to match Federal funds, the appropriated funds may not be expended and shall be returned to the General Fund, except upon specific written approval of the Budget and Control Board after review by the Joint Appropriations Review Committee. Donations or contributions from sources other than the Federal Government, for use by any state agency, shall be deposited in the State Treasury, but in special accounts, and shall be withdrawn from the treasury as needed to fulfill the purposes and conditions of the said donations, or contributions, if specified, and, if not specified, as may be directed by the proper authorities of the department. The expenditure of funds by agencies of the State Government from sources other than General Fund appropriations shall be subject to the same limitations and provisions of law applicable to the expenditure of appropriated funds with respect to salaries, wages or other compensation, travel expense, and other allowance or benefits for employees. 129.8. Except as otherwise provided in this Act, all appropriations for compensation of State Employees shall be paid in twice-monthly installments to the person holding such position. In order to provide a regular and permanent schedule for payment of employees, it is hereby established that the payroll period shall begin on June 2, 1990, with the first pay period ending on June 16, 1990. The payroll period shall continue thereafter on a twice-monthly schedule as established by the Budget and Control Board. It is the intent of the General Assembly that this schedule, thus established, will continue from one fiscal year to another without interruption, on a twice monthly basis. The Budget and Control Board is authorized to approve any changes to this schedule where circumstances are deemed justifiable. The appropriated salaries for specified positions shall mean the maximum compensation for such position, except as specifically provided in other provisions of this Act, and in any case where the head of any department can secure the services for a particular position or work at a lower rate than the salary specified in this Act, authority for so doing is hereby given. No employee of any state department or institution shall be paid any compensation from any other department of the state government except those approved under the provisions of Regulation 19-702.09 of the 1976 Code, as amended, and no employee of any department or institution shall be paid travel expenses by any other department or institution without approval of the agency by which he is regularly employed. The Comptroller General shall report, after June thirtieth of each year, to the House Ways and Means Committee and the Senate Finance Committee the names of all employees receiving dual compensation and the amounts received. The provisions of Regulation 19-707.02 and Section 8-5-10 of the 1976 Code, as amended, shall not apply to employees hired for 120 days or less. 129.9. That salaries paid to officers and employees of the State, including its several boards, commissions, and institutions shall be in full for all services rendered, and no perquisites of office or of employment shall be allowed in addition thereto, but such perquisites, commodities, services or other benefits shall be charged for at the prevailing local value and without the purpose or effect of increasing the compensation of said officer or employee. The charge for these items may be payroll deducted at the discretion of the Comptroller General or the chief financial officer at each agency maintaining its own payroll system. This shall not apply to the Governor's Mansion, nor to guards at any of the state's penal institutions and nurses and attendants at the Department of Mental Health, and the Department of Mental Retardation, and registered nurses providing clinical care at the MUSC Medical Center, nor to the Superintendent and staff of John de la Howe School, nor to the cottage parents and staff of Wil Lou Gray Opportunity School, nor to full-time or part-time staff who work after regular working hours in the SLED Communications Center or Maintenance Area, nor to the Directors of John G. Richards Campus, Willow Lane Campus, and the Reception and Evaluation Center at the Department of Youth Services. The Presidents of those State institutions of higher learning authorized to provide on-campus residential facilities for students may be permitted to occupy residences on the grounds of such institutions without charge. Any state institution of higher learning may provide a housing allowance to the President in lieu of a residential facility, the amount to be approved by the Budget and Control Board. That the following may be permitted to occupy residences owned by the respective Departments without charge: the Commissioner of the Department of Corrections, the State Commissioner of Mental Health, the Farm Director, Farm Managers, and Specialists employed at the Wateree River Correctional Institution, Walden Correctional Institution, MacDougall Youth Correctional Center, and Givens Youth Correctional Center; the S. C. State Commission of Forestry fire tower operators, forestry aides, and caretaker at central headquarters; the S. C. Wildlife and Marine Resources Department's Game Management Personnel, Fish Hatchery Superintendents, Lake Superintendent, and Fort Johnson Superintendent; the Department of Parks, Recreation and Tourism field personnel in the State Parks Division; the Agricultural Aide at the Department of Youth Services Farm; Director of Wil Lou Gray Opportunity School; President of the School for the Deaf and Blind; house parents for the Commission for the Blind; Director of the Physical Plant at Winthrop College and Farm Superintendent at Winthrop College; S.C. Department of Health and Environmental Control personnel at the State Park Health Facility and Camp Burnt Gin; Assistant Director of Residence Life and a student counselor at Lander College; Clemson University's Head Football Coach; the Department of Mental Retardation physicians and other professionals at Whitten Center, Clemson University Off-Campus Agricultural Staff and Housing Area Coordinators; and University of South Carolina's Manager of Bell Camp Facility, Director of Community Relations, Housing Maintenance Night Supervisors, Residence Life Directors, temporary and transition employees, and emergency medical personnel. Except in the case of elected officials, the fair market rental value of any residence furnished to a State Employee shall be reported by the State Agency furnishing the residence to the State Auditor and the Joint Legislative Committee on Personal Service Financing and Budgeting by October 1, of each fiscal year. All salaries paid by departments and institutions shall be in accord with a uniform classification and compensation plan, approved by the Budget and Control Board, applicable to all personnel of the State Government whose compensation is not specifically fixed in this Act. Such plan shall include all employees regardless of the source of funds from which payment for personal service is drawn. Academic personnel of the institutions of higher learning and other individual or group of positions that cannot practically be covered by the plan may be excluded therefrom but their compensations shall, nevertheless, be subject to approval by the Budget and Control Board. Salary appropriations for employees fixed in this Act shall be in full for all services rendered, and no supplements from other sources shall be permitted or approved by the State Budget and Control Board. With the exception of travel and subsistence, legislative study committees shall not compensate any person who is otherwise employed as a full-time state employee. Salaries of the heads of all agencies of the State Government shall be specifically fixed in this Act and no salary shall be paid any agency head whose salary is not so fixed. The source of compensation for any position in the State Government shall not be changed without approval of the Budget and Control Board. State agencies and institutions shall be allowed to spend public funds on employee plaques, certificates, and other similar recognition events, up to the limit of $50 for each individual, provided that no such award is monetary, and that total expenditures of public funds for such awards by each state agency or institution do not exceed $1,000. 129.10. Each organization receiving a contribution in this Act shall render to the Budget and Control Board by November 1 of the fiscal year in which funds are received, an accounting of how the state funds will be spent, a copy of the adopted budget for the current year, and also a copy of the organization's most recent operating financial statement. The funds appropriated in this Act for contributions shall not be expended until the required financial statements are filed with the Budget and Control Board. No funds in this Act shall be disbursed to organizations or purposes which practice discrimination against persons by virtue of race, creed, color or national origin. The State Auditor shall review and audit, if necessary, the financial structure and activities of each organization receiving contributions in this Act and make a report to the General Assembly of such review and/or audit, when requested to do so by the Budget and Control Board. 129.11. Travel and subsistence expenses, whether paid from State appropriated, Federal, local or other funds, shall be allowed in accordance with the following provisions: A. Unless otherwise provided in paragraphs B through H of this section, all employees of the State of South Carolina or any agency thereof including employees and members of the governing bodies of each technical education center while traveling on the business of the State shall, upon presentation of a paid receipt, be allowed reimbursement for actual expenses incurred for lodging. Agencies may contract with lodging facilities to pay on behalf of an employee. Failure to maintain proper control of direct payments for lodging may result in the revocation of the agency's authority by the Comptroller General or the State Auditor. The employee shall also be reimbursed for the actual expenses incurred in the obtaining of meals except that such costs shall not exceed ($20) per day within the State of South Carolina. For travel outside of South Carolina the maximum daily reimbursement for meals shall not exceed ($32). It shall be the responsibility of the agency head to monitor the charges for lodging which might be claimed by his employees in order to determine that such charges are reasonable, taking into consideration location, purpose of travel or other extenuating circumstances. The provisions of this item shall not apply to Section 42-3-40 of the 1976 Code. B. That employees of the State, when traveling outside the United States, Canada, and Puerto Rico upon promotional business for the State of South Carolina shall be entitled to actual expenses for both food and lodging. C. The Governor, Lieutenant Governor, Secretary of State, Comptroller General, Attorney General, State Treasurer, Adjutant General, Superintendent of Education and the Commissioner of Agriculture shall be reimbursed actual expenses for subsistence. D. Non-legislative members of committees appointed pursuant to Acts and Resolutions of the General Assembly whose membership consists solely of members of the General Assembly or members of the General Assembly and other personnel who are not employees of the State of South Carolina shall be allowed subsistence expenses of $35 per day while traveling on official business. Members of such committees may opt to receive actual expenses incurred for lodging and actual expenses incurred in the obtaining of meals in lieu of the allowable subsistence expense. E. Members of the State Boards, Commissions, or Committees whose duties are not full-time and who are paid on a per diem basis, shall be allowed reimbursement for actual expenses incurred at the rates provided in Paragraph A and I of this section while away from their places of residence on official business of the State. One person accompanying a handicapped member of a State Board, Commission, or Committee on official business of the State shall be allowed the same reimbursement for actual expenses incurred at the rates provided in Paragraph A through I of this section. F. No subsistence reimbursement shall be allowed to a Justice of the Supreme Court or Judge of the Court of Appeals while traveling in the county of his official residence. When traveling on official business of said court within 40 miles outside the county of his official residence, a Supreme Court Justice and a Judge of the Court of Appeals shall be allowed subsistence expenses in the amount of $35 per day plus such mileage allowance for travel as is provided for other employees of the State. When traveling on official business of said Court 40 or more miles outside the county of his official residence, each Justice and Judge of the Court of Appeals shall be allowed subsistence expenses in the amount as provided in this Act for members of the General Assembly plus such mileage allowance for travel as is provided for other employees of the State. The Chief Justice, or such other person as he designates, while attending the Conference of Chief Justices and one member of the Supreme Court while attending the National Convention of Appellate Court Judges, and three Circuit Judges while attending the National Convention of State Trial Judges shall be allowed actual subsistence and travel expenses. Upon approval of the Chief Justice, Supreme Court Justices, Judges of the Court of Appeals, Circuit Judges, and Family Court Judges shall be reimbursed for actual expenses incurred for all other official business requiring out-of-state expenses at the rate provided in paragraph A of this section. G. No subsistence reimbursements are allowed to a Circuit Judge or a Family Court Judge while holding court within the county in which he resides. While holding court or on other official business outside the county, but within the circuit in which he resides and within fifty miles of his residence, a Circuit Court Judge or Family Court Judge is entitled to a subsistence allowance in the amount of $35 per day. While holding court or on other official business within his circuit at a location fifty miles or more from his residence or without his circuit, a Circuit Court or Family Court Judge is entitled to a subsistence allowance in the amount as provided in this Act for members of the General Assembly. H. Any retired Justice, Circuit Court Judge or Family Court Judge appointed by the Supreme Court to serve as a Special Circuit Judge, Family Court Judge, Appeals Court Judge, or Acting Associate Justice shall serve without pay but shall receive the same allowance for subsistence, expenses, and mileage as provided in Part I for Circuit Court Judges. I. No expense shall be allowed an employee either at his place of residence or at the official headquarters of the agency by which he is employed except as provided in paragraph E, of this section. When an employee is assigned to work a particular territory or district, and such territory or district and his official headquarters are in different localities or sections of the State, expenses may be allowed for the necessary travel to his official headquarters. The members of the Workers' Compensation Commission, Public Service Commission and the Employment Security Commission may be reimbursed at the regular mileage rate of one round trip each week from their respective homes to Columbia. No subsistence reimbursement shall be allowed to a member of the Workers' Compensation Commission, Public Service Commission or the Employment Security Commission while traveling in the county of his official residence. When traveling on official business of the Commission within 50 miles outside the county of his official residence, a member of the Workers' Compensation Commission, Public Service Commission or the Employment Security Commission shall be allowed subsistence expenses in the amount of $35 per day. When traveling on official business of the Commission 50 or more miles outside the county of his official residence, each member shall be allowed a subsistence expense in the amount of $50 per day except that members of the Employment Security Commission, Public Service Commission, and Workers' Compensation Commission shall receive a subsistence allowance as provided in this Act for members of the General Assembly. J. When an employee of the State shall use his or her personal automobile in traveling on necessary official business, a charge of 25.5 cents per mile will be allowed for the use of such automobile and the employee shall bear the expense of supplies and upkeep thereof. Whenever state-provided motor pool vehicles are reasonably available and an employee of the State shall request for his own benefit to use his or her personal vehicle in traveling on necessary official business, a charge of 24.5 cents per mile will be allocated for the use of such vehicle and the employee shall bear the expense of supplies and upkeep thereof. When such travel is by a State-owned automobile, the State shall bear the expense of supplies and upkeep thereof but no mileage will be allowed. Agencies and employees are directed to use state fueling facilities to the maximum extent possible, when such use is cost-beneficial to the State. When using commercial fueling facilities, operators of state-owned vehicles are directed to use self-service pumps. In traveling on the business of the State, employees are required to use the most economical mode of transportation, due consideration being given to urgency, schedules and like factors. Mileage between an employee's home and his/her place of employment is not subject to reimbursement. However, when an employee leaves on a business trip directly from his/her home, and does not go by the employee's headquarters, the employee shall be eligible for reimbursement for actual mileage beginning at his/her residence. K. That a state agency may advance travel and subsistence expense monies to employees of that agency for the financing of ordinary and necessary travel required in the conducting of the business of the agency. The Budget and Control Board is directed to develop and publish rules and regulations pertaining to the advancing of travel expenses and no state agency shall make such advances except under the rules and regulations as published. All advances for travel and subsistence monies shall be repaid to the agency within thirty (30) days after the end of the trip or by the end of the fiscal year, whichever comes first. L. That the state institutions of higher learning are authorized to reimburse reasonable relocation expenses for new employees when such reimbursements are considered by the agency head to be essential to successful recruitment of professionally competent staff members. M. The State Budget and Control Board is authorized to promulgate and publish rules and regulations governing travel and subsistence payments. 129.12. The per diem allowance of all boards, commissions and committees shall be at the rate of thirty-five ($35) dollars per day. No full-time officer or employee of the State shall draw any per diem allowance for service on such boards, commissions or committees. 129.13. In addition to the powers and duties devolved upon the Budget and Control Board by the 1976 Code of Laws of this State, the said Board is hereby given full power and authority to make surveys, studies, and examinations of departments, institutions, and agencies of this State, as well as its programs, so as to determine whether a proper system of accounting is maintained in such departments, institutions, commissions, and agencies, and to require and enforce the adoption of such policies as are deemed necessary to accomplish these purposes; and to survey, appraise, examine and inspect, and determine the true conditions of all property of the State, and what may be necessary to protect it against fire hazard or deterioration, and to conserve its use for State purposes, and to make and issue and to enforce all necessary, needful, and convenient rules and regulations for the enforcement of this provision and to approve the destruction or disposal of records of no value to the State. The State Budget and Control Board may require that all plans and specifications for permanent improvements of any nature by any state department or institution shall be submitted to the said Board for approval prior to the awarding of any contract therefor, or prior to construction by any other means. The State Budget and Control Board shall have the authority to approve blanket bonds for each of the several departments, agencies and institutions of the state government, which bonds shall include coverage requirements by law for particular officials and employees and any others who, in the opinion of the Board, should be bonded. Such blanket bonds shall be subject to approval as to form and execution by the Attorney General. The Division of General Services may contract to develop an energy utilization management system for state facilities under its control and to assist other agencies and departments in establishing similar programs following all applicable laws and regulations, but no capital expenditures are authorized hereby. 129.14. Notwithstanding any other provision of law, the State Treasurer may enter into contracts whereby the agency or institution may accept credit cards as payment for goods or services provided. 129.15. Any appropriations made herein or by special act hereafter, are hereby declared to be maximum, conditional and proportionate, the purpose being to make them payable in full in the amount named herein, if necessary, but only in the event the aggregate revenues available during the period for which the appropriation is made are sufficient to pay them in full. The State Budget and Control Board shall have full power and authority to survey the progress of the collection of revenue and the expenditure of funds by all departments and institutions. If the Budget and Control Board determines that a deficit may occur, it shall utilize such funds as may be available to avoid a year end deficit and thereafter take such action as necessary to restrict the rate of expenditure as provided in Section 129.6 of this Act. No institution, activity, program, item, special appropriation, or allocation for which the General Assembly has provided funding in any part of this Act shall be discontinued, deleted, or deferred by the Budget and Control Board. Any reduction of rate of expenditure by the said Board, under authority of this Act, shall be applied as uniformly as may be practicable except that no reduction shall be applied to funds encumbered by a written contract with an agency not connected with the State Government; and in making such reductions any amounts of State Revenues allocated by law to Counties and Municipalities (commonly referred to as Aid to Subdivisions) shall be subject to reduction the same as appropriations. Counties and Municipalities shall be immediately notified of any such action by the Board. No such reduction shall be ordered by the State Budget and Control Board while the General Assembly is in session without first reporting such necessity to the General Assembly. The expenditure of funds, heretofore or hereafter provided, by any State Agency, except the Department of Highways and Public Transportation for permanent improvements as defined in the State Budget, shall be subject to approval and regulations of the State Budget and Control Board. The Board shall have authority to allot to specific projects from funds made available for such purposes, such amounts as are estimated to cover the respective costs of such projects, to declare the completion of any such projects, and to dispose, according to law, of any unexpended balances of allotments, or appropriations, or funds otherwise provided for such projects, upon the completion thereof. The approval of the Budget and Control Board shall not be required for minor construction projects (including renovations and alterations) where the cost does not exceed an amount determined by the Joint Bond Review Committee and the Budget and Control Board. In all construction, improvement and renovation of State buildings, the applicable standards and specifications set forth in each of the following codes shall be followed: The Standard Building Code - 1988 Edition with 1989 Revisions (Appendices A,G,K, and M shall be omitted); The Standard Existing Buildings Code - 1988 Edition; the Standard Gas Code - 1988 Edition with 1989 Revisions; The Standard Mechanical Code - 1988 Edition with 1989 Revisions; The Standard Plumbing Code - 1988 Edition with 1989 Revisions; The Standard Fire Prevention Code - 1988 Edition with 1989 Revisions, all as adopted by the Southern Building Code Congress International, Inc.; also the National Electrical Code- NFPA 70-1990; The National Electrical Safety Code-ANSI-C2-1987; and The National Fire Protection Association-NFPA 58-1989. 129.16. (A) Transfers of appropriations herein provided may be made within departments upon written justification to the State Budget Division and upon the unanimous approval of the State Budget and Control Board. (B) No such transfer may exceed twenty percent of the program budget. Upon request, details of such transfers may be provided to members of the General Assembly on an agency by agency basis. (C) No transfers for the purpose of providing salary increases for current employees shall be allowed from funds appropriated in this Act for new positions. (D) The Board shall use all transfer activity data to assist in analyzing agencies' budget requests. A report on transfer activity shall be made quarterly to the Ways and Means Committee and the Senate Finance Committee. 129.17. Subsection (a). The Budget and Control Board is hereby directed to assess and collect a rental charge from all departments and agencies of the State Government occupying space in state-controlled office buildings. The amount charged each department or agency shall be calculated on a square foot, or other equitable basis of measurement, and at such rates as will yield sufficient total annual revenue to cover, unless the Budget and Control Board determines otherwise, in priority order, both (1) the annual principal and interest due on the Capital Improvement Obligations authorized by Act No. 829 of the 1964 Acts, Act No. 1273 of the 1970 Acts and Act No. 508 of the 1971 Acts and Act No. 1377 of the 1968 Acts as amended for projects administered by the Division of General Services and (2) maintenance and operation costs of state-controlled office buildings in the City of Columbia. The amount so collected which is applicable to the payment of principal and interest due on obligations authorized by Act 1377 of the 1968 Acts as amended shall be paid into the state's General Fund to apply on debt service appropriations under the Section 119 of this Act. Subsection (b). All departments and agencies against which rental charges are assessed and whose operations are financed in whole or in part by Federal and/or other nonappropriated funds are directed to apportion the payment of such charges equitably among all such funds, so that each shall bear its proportionate share. All appropriations in this Act applicable to the rental of space in state-controlled buildings (exclusive of the Department of Highways and Public Transportation), shall be available only for payment of that portion of rental charges applicable to state- appropriated operations. Subsection (c). Rental collections shall be deposited by the Budget and Control Board in the State Treasury in a special account and shall be expended only for (1) payment of principal and interest due on the obligations referred to in Subsection (a) above and (2) maintenance and operations costs of the buildings referred to in Subsection (a) above. 129.18. Any funds derived by the State Port Authority from the rental, lease or sale of any of its facilities shall be expended for the benefit of the particular Port where such facilities are located. 129.19. In any instances where Federal laws or regulations, relating to funds allotted to State Government agencies, include requirements relating to banking procedures, the State Treasury shall be deemed to meet the definition of a bank. 129.20. Presidents of the University of South Carolina, Clemson University, the Medical University of South Carolina, The Citadel, Winthrop College, South Carolina State College, Francis Marion College, College of Charleston, and Lander College must not be paid a fixed allowance for personal expenses incurred in connection with the performance of their official duties. Reimbursements may be made to the Presidents from funds available to their respective institutions for any personal expenses incurred provided that all requests for reimbursement are supported by properly documented vouchers processed through the normal accounting procedures of the institutions. 129.20A. Agency heads may receive reimbursements for business expenses incurred while performing their official duties, provided that receipts are presented when seeking reimbursement and justification is submitted to document the time, place, and purpose of the expense as well as the names of the individuals involved. The Budget and Control Board shall promulgate regulations governing these expenses. 129.21. It is the intent of the General Assembly that the amount so provided to each agency or institution for employee benefits shall be sufficient to pay the employer contribution costs of that agency. The Budget and Control Board is directed to devise a plan for the expenditure of the funds appropriated for employer contributions and may require transfers of funds within an agency or institution if it becomes evident that the employer contribution costs will exceed the funds available for that purpose. 129.22. The General Assembly expresses its continuing concern over the control of the number of personnel employed by the State of South Carolina. This concern is evidenced in the 1980 Public Employment Report of the United States Bureau of Census. It is further declared to be the intent of the General Assembly to continue to take positive steps to control and restrict the number of personnel employed in the future, without unduly hampering the legitimate functions of state government. In order to obtain the necessary control over the number of employees, the Budget and Control Board is hereby directed to maintain close supervision over the number of state employees, and to require specifically the following: 1. That no state agency exceed the total authorized number of full-time equivalent positions funded from State, Federal, or other sources as provided in each section of this Act except by majority vote of the Budget and Control Board after review and comment by the Joint Legislative Committee on Personal Service Financing and Budgeting. Specific written confirmation of such majority approval shall be forwarded to the Joint Appropriations Review Committee in the event that any agency is allowed to exceed the number of positions authorized in this Act. 2. That the State Budget Division shall maintain and make, as necessary, periodic adjustments thereto, an official record of the total number of authorized full-time equivalent positions by agency categorized by State, Federal, or other funding sources and shall provide a certified duplicate of such record to the Joint Legislative Committee on Personal Service Financing and Budgeting and to the Joint Appropriations Review Committee. The State Budget Division shall submit monthly reports to the Joint Legislative Committee on Personal Service Financing and Budgeting and the Joint Appropriations Review Committee and such reports shall include any changes in the authorized number of full-time equivalent positions, the number of filled and vacant positions and any other data requested by the committees. (a) That within thirty (30) days of the passage of the Appropriation Act or by August 1, whichever comes later, each agency of the State must have established on the Budget and Control Board records all positions authorized in the Act. After that date, the Board shall delete any nonestablished positions immediately from the official record of authorized full-time equivalent positions. No positions shall be established by the Board in excess of the number authorized in the Board record of authorized full-time equivalent positions. (b) By September 30, the Board shall prepare a personal service detail, by agency, which shows each position established for the fiscal year and the amount of funds required, by source of funds, to support the position for the fiscal year at a funding level of 100% and the Board shall then reconcile each agency's personal service detail with the agency's personal service appropriation as contained in the Act adjusted for any pay increases, and any other factors necessary to reflect the agency's personal service funding level. The Board shall provide a copy of each agency's personal service reconciliation to the Joint Legislative Committee on Personal Service Financing and Budgeting. (c) Any position which is shown by the reconciliation to be unfunded or significantly underfunded may be deleted at the direction of the Budget and Control Board and the Joint Legislative Committee on Personal Service Financing and Budgeting. (d) Full-time equivalent (FTE) positions shall be determined under the following guidelines: 1. The annual work hours for each FTE shall be the agency's full-time standard annual work hours. 2. The state FTE shall be derived by multiplying the state percentage of budgeted funds for each position by the FTE for that position. 3. All institutions of higher education shall use a value of 0.75 FTE for each position determined to be full-time faculty with a duration of nine (9) months. The FTE method of accounting shall be utilized for all authorized positions. 3. That the number of positions authorized in this Act shall be reduced in the following circumstances: (a) Upon request by an agency. (b) When anticipated federal funds are not made available. (c) When the Budget and Control Board, through study or analysis, becomes aware of any unjustifiable excess of positions in any state agency. (d) When a position has been vacant for nine months. Except in the case of an academic position at an institution of higher education when such position has been vacant for eighteen months. 4. That no new permanent positions in state government shall be funded by appropriations in acts supplemental to this Act but temporary positions may be so funded. 5. The provisions of this section shall not apply to personnel exempt from the State Classification and Compensation Plan under Item I of Section 8-11-260 of the 1976 Code. The Budget and Control Board, in making their appropriation recommendations to the Ways and Means Committee, must provide that the level of personal service appropriation recommended for each agency is at least 95% of the funds required to meet 100% of the funds needed for the full-time equivalents positions recommended by the Board (exclusive of new positions). 129.23. The Legislative Audit Council, the State Auditor, the House Ways and Means Committee, the State Reorganization Commission and the Senate Finance Committee shall be furnished a copy of each audit report issued by a Federal Audit Agency within fifteen days from the date of receipt by the State Agency. The State Auditor shall periodically furnish a list of such reports to each member of the General Assembly and to the Joint Appropriations Review Committee. The State Auditor will provide a copy of each Federal Block Grant Audit Report to the Joint Appropriations Review Committee to comply with provisions of the Omnibus Budget Reconciliation Act of 1981. 129.24. Notwithstanding any other provision of law, the Budget and Control Board shall be responsible for coordinating the placement of all state employees who are terminated because of a reduction-in-force resulting from reduced personal service funding and shall issue such administrative procedures as necessary to carry out the intent of this proviso. When a vacancy occurs in a state agency, or when an agency acts to fill a new position as listed and italicized in the Appropriation Act, the agency shall implement the recall provisions of their reduction-in-force procedure and plan concerning its employees who have been terminated as a result of a reduction-in-force. State agencies shall give priority consideration to those employees who have been terminated from any other state agency as a result of this reduction-in-force and who were formerly employed in the same classification, classification series, or position category as the vacancy or the new position listed in this Act. Notwithstanding any other provision of law, when a vacancy occurs in a state agency, other than institutions of higher education, or when an agency acts to fill a new position, the agency shall give preference to residents of this State, if the two are equally qualified for the vacancy or new position. The Budget and Control Board shall study the feasibility in state government of using contract services from private entities or any matter relating to this subject as directed by the Board in lieu of hiring permanent employees when vacancies occur. The Budget and Control Board shall report its findings to the Chairman of the House Ways and Means Committee and the Chairman of the Senate Finance Committee by January 1, 1991. The Budget and Control Board shall immediately notify all agencies of this new requirement on the effective date of this Act. 129.25. It is the responsibility of all agencies, departments and institutions of state government, to provide at no cost and as a part of the regular services of the agency, department or institutions such services as are necessary to carry out the provisions of Chapter 52 of Title 44 (Involuntary Commitment), Article 7, Chapter 17 of Title 44 of the 1976 Code (Judicial Commitment), Chapter 3 of Title 17 of the 1976 Code (Defense of Indigents), and Article 1 of Chapter 3 of Title 16 of the 1976 Code (Death Penalty), as amended, upon request of the Judicial Department and/or the appropriate court. To this end, state agencies are directed to furnish to the Judicial Department a list of their employees who are competent to serve as court examiners. The Judicial Department shall forward a copy of this list to the appropriate courts, and the courts shall utilize the services of such state employees whenever feasible. State employees shall receive no additional compensation for performing such services. For the purpose of interpreting this section, employees of the Medical University of South Carolina and individuals serving an internship or residency as an academic requirement or employees who are not full-time state employees and who are not performing duties as state employees are not considered state employees. 129.26. Notwithstanding any other provision of law, any aircraft and watercraft confiscated or seized under the provisions of Act 185 of 1979 may be used by a governmental agency, at the discretion and approval of the Budget and Control Board. 129.27. All state employees, who are commissioned law enforcement officers upon retirement, if vested, may purchase their assigned weapon at a nominal fee. 129.28. No aircraft will be purchased or leased or leased- purchased for more than a 30-day period for any state agency without the authorization of the State Budget and Control Board and the Joint Bond Review Committee. 129.29. DELETED 129.30. Final settlement received on Federal funds allotted to the state and the investment earnings thereof, under the provisions of the State and Local Fiscal Assistance Act of 1972 not heretofore appropriated, shall be applied to the payment of appropriations in this Act for the state contribution to the South Carolina Retirement System. 129.31. The Department of Mental Retardation, Department of Social Services, and Department of Youth Services shall furnish as Family Foster Care payments for individual foster children under their sponsorship: ages 0 - 5 $182 per month ages 6 - 12 $209 per month ages 13 + $275 per month These specified amounts are for the basic needs of the foster children. Basic needs within this proviso are identified as food (at home and away), clothing, housing, transportation, education and other costs as defined in the U.S. Department of Agriculture study of "Annual Cost of raising a Child to Age Eighteen". Further, each agency shall identify and justify, as another line item, all material and/or services, in excess of those basic needs listed above, which were a direct result of a professional agency evaluation of clientele need. Legitimate medical care in excess of Medicaid reimbursement or such care not recognized by Medicaid may be considered as special needs if approved by the sponsoring/responsible agency and shall be reimbursed by the sponsoring agency in the same manner of reimbursing other special needs of foster children. 129.32. After July 1, of the current fiscal year, the Department of Health and Environmental Control, Department of Mental Health, Department of Mental Retardation Department of Social Services, State Health and Human Services Finance Commission, Commission on Aging, Advisory Board for Review of Foster Care of Children, Department of Corrections, and Department of Youth Services may expend if necessary, state appropriated funds for the current fiscal year to cover fourth quarter Federal Programs expenses incurred in the prior fiscal year necessitated by the time lag of federal reimbursement. 129.33. Amounts appropriated to the Department of Health and Environmental Control, Department of Social Services, State Health and Human Services Finance Commission, and Commission on Aging may be expended to cover program operations of prior fiscal years where adjustment of such prior years are necessary under federal regulations or audit exceptions. All disallowances or notices of disallowances by any federal agency of any costs claimed by these agencies shall be submitted to the State Auditor, the House Ways and Means Committee and the Senate Finance Committee, within five days of receipt of such actions. 129.34. The Department of Youth Services, Department of Corrections, Probation, Parole and Pardon Services, Department of Mental Health, Department of Mental Retardation and School for the Deaf and Blind may replace the personal property of an employee which has been damaged or destroyed by a client while in custody of the agency. The replacement of personal property may be made only if the loss has resulted from actions by the employee deemed to be appropriate and in the line of duty by the agency head and if the damaged or destroyed item is found by the agency head to be reasonable in value, and necessary for the employee to carry out the functions and duties of his employment. Replacement of damaged or destroyed items shall not exceed $250 per item, per incident. Each agency must have guidelines to insure the reasonableness of the replacement payments. 129.35. The Board of the Medical University of South Carolina shall provide hospital services to state employees and officials of state government at a rate not to exceed the payment rates to hospitals provided in the state employees insurance program administered by the Budget and Control Board. Private physician fees and all dental are not included. 129.36. The Medical University of South Carolina and the School of Medicine of the University of South Carolina shall develop health programs for agency heads. The programs shall be submitted to the Budget and Control Board for approval, after which the Board may authorize the agency or institution to pay, on behalf of the agency head, one-half of the cost, provided that the amount to be paid by the agency shall not exceed $250. Where the agency or institution is located in an area other than Columbia or Charleston, the Budget and Control Board may approve an alternate health plan for the agency head and may authorize payment by the agency which is consistent with payments to the Medical University or the University of South Carolina. 129.37. Each agency having in its custody one or more aircraft shall maintain a continuing log on all flights, which shall be open for public inspection. Any and all aircraft owned or operated by agencies of the State Government shall be used only for official business. The Aeronautics Commission and other agencies owning and operating aircraft may furnish transportation to the Governor, Constitutional Officers, members of the General Assembly, members of state boards, commissions, and agencies and their invitees for official business only; no member of the General Assembly, no member of a state board, commission or committee, and no state official shall use any aircraft of the Aeronautics Commission unless the member or official files within forty-eight hours after the time of departure of the flight with the Aeronautics Commission a sworn statement certifying and describing the official nature of his trip; and no member of the General Assembly, no member of a state board, commission or committee, and no state official shall be furnished air transportation by a state agency other than the Aeronautics Commission unless such agency prepares and maintains in its files a sworn statement from an appropriate official of the agency certifying that the member's or state official's trip was in conjunction with the official business of the agency. Official business shall not include routine transportation to and from meetings of the General Assembly or committee meetings for which mileage is authorized. All logs shall be signed by the parties using the flight and the signatures shall be maintained as part of the permanent record of any agency. All passengers shall be listed on the flight log by their legal name; passengers flying with an appropriate official of SLED or the State Development Board whose confidentiality must, in the opinion of SLED or the Board, be protected shall be listed in writing on the flight log as "Confidential Passenger of SLED or State Development Board (strike one)" and the appropriate official of SLED or the Board shall certify to the agency operating the aircraft the necessity for such confidentiality. Violation of the above provisions of this section is prima facie evidence of a violation of Section 8-13-410(1) of the 1976 Code and shall subject a violating member of the General Assembly to the ethics procedure of his appropriate house and shall subject a violating member of a state board, commission or committee, or a state official to the applicable ethics procedure relating to them as provided by law. The above provisions do not apply to aircraft of the Aeronautics Commission when used by the Medical University of South Carolina, nor to aircraft of the athletic department or the educational foundations of any state-supported institution of higher education. Aircraft owned by agencies of state government shall not be leased to individuals for their personal use. 129.38. Professional and Occupational Licensing Agencies must generate revenue equal to 110 percent of their appropriation. In any year during which any Professional and Occupational Licensing Agency does not generate the required revenue as provided above, it shall generate sufficient revenue in the succeeding year to offset the prior deficit, in addition to meeting requirements for the current year. Professional and Occupational Licensing Boards may adjust fees, if necessary, to generate revenue at least ten percent above the current year state appropriation. 129.39. All agencies are directed to assist the U. S. Post Office in a cost study of the savings which may be realized through the use of the zip plus four system. 129.40. Any employee who is approved for dual employment must be paid in a timely manner. The secondary agency is required to make payment of funds approved for and earned under dual employment within forty-five days of the beginning of the employment. 129.41. The Budget and Control Board, through the Information Technology Planning Process of the Division of Research and Statistical Services, is authorized and directed to identify all expenditures and requested increases for information technology for Agencies, Institutions or Departments, with the exception of colleges and universities, compile the request into one report, evaluate and place priorities on each request, and recommend funding levels. No agency shall commit to expend more funds for information technology than allocated to the agency for the purpose without first receiving an approved transfer of such funds from other budget items. 129.42. (A) No state agency, department, board, committee, commission, or authority, may increase an existing fee for performing any duty, responsibility, or function unless the fee for performing the particular duty, responsibility, or function is authorized by statutory law and set by regulation except as provided in this paragraph. (B) This paragraph does not apply to: (1) state-supported governmental health care facilities; (2) state-supported schools, colleges, and universities; (3) educational, entertainment, recreational, cultural, and training programs; (4) the State Board of Financial Institutions; (5) sales by state agencies of goods or tangible products produced for or by these agencies; (6) charges by state agencies for room and board provided on state-owned property; (7) application fees for recreational activities sponsored by state agencies and conducted on a draw or lottery basis; (8) court fees or fines levied in a judicial or adjudicatory proceeding; (9) the South Carolina Public Service Authority or the South Carolina Ports Authority. (C) This paragraph does not prohibit a state agency, department, board, committee, or commission from increasing fees for services provided to other state agencies, departments, boards, committees, commissions, political subdivisions, or fees for health care and laboratory services regardless of whether the fee is set by statute. (D) Statutory law for purposes of this paragraph does not include regulations promulgated pursuant to the State Administrative Procedures Act. 129.43. TABLED (Electronic Funds Transfer System Study) 129.44. DELETED 129.45. Notwithstanding any other provision of law, agencies appropriated case services funds who routinely receive prior year case service billings after the old fiscal year has been officially closed are authorized to pay these case service obligations with current funds. This authorization does not apply to billings on hand that have been through a timely agency payment approval process when the old fiscal year closes. 129.46. DELETED 129.47. It is the policy of the State of South Carolina to recruit, hire, train, and promote employees without discrimination because of race, color, sex, national origin, age, religion or physical disability. This policy is to apply to all levels and phases of personnel within state government, including but not limited to recruiting, hiring, compensation, benefits, promotions, transfers, layoffs, recalls from layoffs, and educational, social, or recreational programs. It is the policy of the State to take affirmative action to remove the disparate effects of past discrimination, if any, because of race, color, sex, national origin, age, religion or physical disability. Each state agency shall submit to the State Human Affairs Commission employment and filled vacancy data by race and sex by October 31, of each year. In accordance with Section 1-13-110 of the South Carolina Code of Laws of 1976, as amended, the Human Affairs Commission shall submit a report on the status of State Agencies' Affirmative Action Plans and Programs to the General Assembly by February 1 each year. This report shall contain the total number of persons employed in each job group, by race and sex, at the end of the preceding reporting period, a breakdown by race and sex of those hired or promoted from within the agency during the reporting period, and an indication of whether affirmative action goals were achieved. For each job group referenced in the Human Affairs report, where the hiring of personnel does not reflect the percentage goals established in the agency's affirmative action plan for the year in question, the state agency shall submit a detailed explanation to the Human Affairs Commission by February 15, explaining why goals were not achieved. The Human Affairs Commission shall review the explanations and notify the Budget and Control Board of any agency not in satisfactory compliance with meeting its stated goals. The Budget and Control Board shall notify any agency not in compliance that their request for additional appropriations for the current appropriation cycle, may not be processed until such time as the Budget and Control Board, after consultation with the Human Affairs Commission, is satisfied that the agency is making a good faith effort to comply with its affirmative action plan, and that the compliance must be accomplished within a reasonable length of time to be determined by the mission and circumstances of the agency. This requirement shall not affect additional appropriation requests for public assistance payments or aid to entities. This section does not apply to those agencies that have been exempted from the reporting requirements of the Human Affairs Commission. 129.48. The General Assembly finds that the operation of health and human services may be enhanced by closer working relationships among agencies at the state and local level. The General Assembly finds that coordination at both levels provides opportunities to serve the citizens of South Carolina better through (1) continued expansion of services integration and (2) stronger communication among agencies delivering services. In order to assist in, recommend, develop policy for, and supervise the expenditure of funds for the continuation of service integration in South Carolina, there is created a Human Services Coordinating Council, hereinafter, entitled the Council. The Council shall consist of: (1) The chairperson of the boards of the following agencies: Commission on Aging, Commission on Alcohol and Drug Abuse, Commission on the Blind, Children's Foster Care Review Board, Department of Education, Department of Health and Environmental Control, State Health and Human Services Finance Commission, Department of Youth Services, Department of Veterans' Affairs, John De La Howe School, Department of Mental Health, Department of Mental Retardation, School for Deaf and Blind, Department of Social Services, Department of Vocational Rehabilitation, Guardian ad Litem Program, Continuum of Care for Emotionally Disturbed Children, Educational Television, Wil Lou Gray Opportunity School, Department of Corrections, Probation, Parole and Pardon Services and the State Housing Finance and Development Authority. These chairpersons shall receive the usual mileage, subsistence, and per diem provided by law for members of committees, boards, and commissions. Mileage, subsistence, and per diem must be paid from the approved accounts of their respective boards or commissions. (2) The chief executive officer of each of the following agencies: Commission on Aging, Commission on Alcohol and Drug Abuse, Commission on the Blind, Children's Foster Care Review Board, Department of Education, Department of Health and Environmental Control, State Health and Human Services Finance Commission, Department of Youth Services, Department of Veterans' Affairs, John De La Howe School, Department of Mental Health, Department of Mental Retardation, School for Deaf and Blind, Department of Social Services, Department of Vocational Rehabilitation, Guardian ad Litem Program, Continuum of Care for Emotionally Disturbed Children, Educational Television, Wil Lou Gray Opportunity School, Department of Corrections, Probation, Parole and Pardon Services and the State Housing Finance and Development Authority. (3) The Governor or his designee. (4) Other such members as the Council shall deem appropriate. The Council shall: (1) Select a board chairperson on an annual basis to serve as the Council chairperson; select a chief executive officer on an annual basis to serve as the Council vice-chairperson. (2) Meet regularly to provide an opportunity for collaboration and cooperation among member agencies. The Council shall have as its goals: (1) Identify and address priority health and human needs and promote the availability of responsive resources. (2) Promote cost-effective, efficient approaches for the delivery of health and human services which include prevention, education, reduction of dependency, promotion of self-sufficiency and delivery of services in the least restrictive, most appropriate community-based and institutional settings. (3) Provide coordination between the council members and the State Health and Human Services Finance Commission in the development of the comprehensive State Health and Human Services Plan. (4) In cooperation with the State Health and Human Services Finance Commission, coordinate and oversee efforts to integrate services information among state agencies and between state and local agencies. (5) Review and monitor service integration efforts begun by the Human Services Integration Projects, including: (a) Developing standards for case management activities and coordinating with local entities on service integration efforts, and (b) Receiving requests for funding of projects designed to further integration of services, including review and approval of such projects. 129.49. The State House Committee in consultation with the Division of General Services of the State Budget and Control Board shall conduct a study to determine the feasibility and expense of providing alternate emergency exits from the House and Senate Chambers. The State House Committee shall report the results of the study to the Speaker of the House and the President of the Senate no later than January 31, 1990. Expenses of the study must be paid from the approved accounts of both houses. 129.50. Each agency of state government shall include in their annual report to the General Assembly a listing of agency programs in order of priority importance to the mission of the agency. The reports shall further contain efficiency and effectiveness measures regarding the performance of each agency program, including measures which compare actual performance for the fiscal year being reported to the actual performance of the previous fiscal year. The Budget and Control Board shall develop uniform criteria for the efficiency and effectiveness measures to be included in the report. 129.51. After review by the Joint Bond Review Committee, the State Budget and Control Board may transfer to the Bond Contingency Revolving Fund any capital improvement bond project balances determined not to be usable or needed. Capital improvement bonds issued on behalf of the Mental Health Commission as provided in Act 151 of 1983 and Act 1272 and 1276 of 1970, as amended, or to bonds issued on behalf of the Commission on Mental Retardation as provided in Section 44-21-1010 et seq. are exempt. Before accomplishing a transfer of this type, the required determination must be made by the agency for which the funds were authorized or by the Board if the agency no longer exists and the Board must find that the purpose for which the funds were authorized has been achieved. 129.52. Notwithstanding any other provision of law or this Act, state agencies and institutions may, at their discretion, hire employees to fill temporary grant positions specified in federal grants, public charity grants, private foundation grants, and research grants approved or authorized by the appropriate state authority in accordance with the following provisions: A. Only those funds authorized within the approved federal grant, public charity grant, private foundation grant, or research grant can be used to pay the salaries and/or benefits of temporary grant employees hired under this provision. B. Temporary grant positions, employees, and the conditions of their employment shall be reported in accordance with provisions developed by the Division of Human Resource Management of the Budget and Control Board. C. Positions established under this provision must be limited to and must not exist beyond the duration of the grant or any subsequent renewal of it. When the grant or any subsequent renewal ends, temporary grant employees must be terminated and their positions will cease to exist. Temporary grant employees will be exempt from the provisions of Sections 8-17-310 through 8- 17-380 of the 1976 Code, as amended. State agencies and institutions must terminate all temporary grant positions at any time funding upon which the grant is based is terminated or is insufficient to continue payments under the conditions of the grant. D. Temporary grant employees may be eligible for the same benefits, excluding permanent or probationary employment status, available to permanent state employees provided that such funds are available within the grant. E. Temporary grant employees shall be deemed to be employed at will. The temporary grant employee shall not be entitled to any compensation beyond the date of termination, other than for such part of the grant that has been performed. F. Discretionary determinations by a state agency or institution as to whether to hire an employee pursuant to this proviso are final and not subject to administrative or judicial appeal. 129.53. All funds involved in the settlement of asbestos litigation cases, with the exception of those funds involving the University of South Carolina system and Clemson University, must be deposited into an interest bearing account in the State Treasurer's Office entitled "Asbestos Expense Trust Account". The University of South Carolina system and Clemson University must deposit all funds involved in the settlement of asbestos litigation into separate institutional interest bearing accounts entitled "Asbestos Expense Trust Account", with each institution's name appropriately captioned in their respective accounts, to be maintained in the State Treasurer's Office. These accounts shall only be used for expenses relating to asbestos litigation, asbestos abatement, or other asbestos related expenses or projects. Such projects must be approved by the Budget and Control Board after review by the Joint Bond Review Committee. 129.54. Agencies of the state may contract with private individuals for personnel services for periods not to exceed twelve months and for amounts of less than $60,000, notwithstanding any other provision of law. 129.55. Notwithstanding any other provision of law, a retired member of the System may return to employment covered by the System and earn up to ten thousand dollars a fiscal year without affecting the monthly retirement allowance he is receiving from the System. If the retired member continues in service after having earned ten thousand dollars in a fiscal year, his retirement allowance must be discontinued during his period of service in the remainder of the fiscal year. If the employment continues for at least forty-eight consecutive months, the provisions of Section 9-1-1590 apply. The provisions of this section do not apply to an employee or member of the System who has retired mandatorily because of age pursuant to Section 9-1- 1530. 129.56. Notwithstanding the provisions of subsections (1) and (2) of Section 9-11-90, a retired member of the System may return to employment covered by the System and earn up to ten thousand dollars a fiscal year without affecting the monthly retirement allowance he is receiving from the System. If the retired member continues in service after having earned ten thousand dollars in a fiscal year, his retirement allowance must be discontinued during the 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 an employee or member of the System who has retired mandatorily because of age pursuant to Section 9-1- 1530. 129.57. DELETED 130.1. Unless specifically authorized herein, the appropriations provided in Part I of this Act as ordinary expenses of the State Government shall lapse on July 31, 1991. State agencies are required to submit all current fiscal year input documents to the Comptroller General's Office by July 19, 1991. Appropriations for Permanent Improvements, or for other specific purposes aside from ordinary operating expenses, now outstanding or hereafter provided, shall lapse at the end of the second fiscal year in which such appropriations were provided, unless definite commitments shall have been made, with the approval of the State Budget and Control Board and Joint Bond Review Committee, toward the accomplishment of the purposes for which the appropriations were provided. End of Part I PART II PERMANENT PROVISIONS SECTION 1 The Code Commissioner is directed to include all permanent general laws in this Part in the next edition of the Code of Laws of South Carolina, 1976, and all supplements to the Code. *SECTION 2 TO AMEND SECTION 12-27-390 OF THE 1976 CODE, RELATING TO THE DISTRIBUTION OF ONE-HALF OF ONE PERCENT OF THE GASOLINE TAX REVENUES TO THE CREDIT OF THE WATER RECREATIONAL RESOURCES FUND OF THE STATE TREASURY, SO AS TO PROVIDE THAT UP TO TWENTY-FIVE PERCENT OF DISTRIBUTIONS TO COUNTIES FROM THE FUND MAY BE USED FOR CAPITAL IMPROVEMENTS FOR RECREATIONAL PURPOSES. The first paragraph of Section 12-27-390 of the 1976 Code is amended to read: "One-half of one percent of the proceeds from the gasoline tax imposed pursuant to Section 12-27-230 must be transmitted to the Department of Wildlife and Marine Resources to be placed to the credit of a special water recreational resources fund of the state treasury and all balances in the fund must be carried forward each year so that no part of the fund reverts to the general fund of the State. Fund proceeds must be distributed to the counties based upon the number of boats or other watercraft registered in each county pursuant to law and expended, subject to the approval of a majority of the county legislative delegation, including a majority of the resident senators, if any, for the purpose of water recreational resources and capital improvements for recreational purposes. Not more than twenty-five percent of the funds distributed to a county may be used for capital improvements for recreational purposes. The amounts distributed to the counties must be deducted from the gross proceeds of the gasoline tax imposed under Section 12-27-230 before net proceeds to be distributed to the Department of Highways and Public Transportation and counties pursuant to Section 12-27-380 are determined. This section does not reduce the one cent a gallon license tax now being distributed to the counties pursuant to Section 12-27-380."* Indicates those vetoes sustained by the General Assembly June 19, 1990. (Provisions printed in italic boldface were vetoed by the Governor June 13, 1990.)SECTION 3 TO AMEND SECTIONS 12-7-20 AND 12-16-20, AS AMENDED, OF THE 1976 CODE, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME AND ESTATE TAX, SO AS TO UPDATE THE REFERENCE DATE OF THIS STATE'S ADOPTION OF VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986; AND TO AMEND SECTION 12-9-390, RELATING TO THE REQUIREMENTS ON STATE INCOME TAX WITHHOLDING AGENTS, SO AS TO UPDATE THE REFERENCE DATE OF THE INTERNAL REVENUE CODE OF 1986 USED FOR PURPOSES OF STATE INCOME TAX WITHHOLDING. A.Section 12-7-20(11) of the 1976 Code, as last amended by Section 25A, Part II, Act 189 of 1989, is further amended to read: "(11) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1989." B.Section 12-16-20(5) of the 1976 Code, as last amended by Section 25B, Part II, Act 189 of 1989, is further amended to read: "(5) 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 1989." C. Section 12-9-390 of the 1976 Code is amended to read: "Section 12-9-390. (A) Every withholding agent required to make a return or deposit and pay taxes to the Internal Revenue Service under the Internal Revenue Code of 1986, as amended through December 31, 1989, and applicable regulations effective as of December 31, 1989, shall at the same time, make a return or deposit and pay to the commission any taxes deducted and withheld under the provisions of Sections 12-9-310 to 12-9-370. All withheld funds must be deposited at financial institutions selected by the State Treasurer if the deposit is also required under the Internal Revenue Code of 1986, as amended through December 31, 1989, and applicable regulations as of December 31, 1989. A failure to deposit, without a showing of reasonable cause, subjects the withholding agent to a penalty of not less than ten dollars nor more than one thousand dollars, to be assessed and collected in the same manner and with the same effect as taxes provided by Chapter 7 of this title. Nonresident withholding agents may elect to remit taxes withheld under Sections 12-9-310 through 12-9-370 by making a return to the commission as follows: (1) If the accumulated amount withheld in a calendar quarter is less than five hundred dollars, the return must be filed and the tax remitted to the commission as provided in subsection (B) of this section. (2) If the accumulated amount withheld is five hundred dollars or more by the end of a month, the return must be filed and the tax remitted to the commission on or before the fifteenth day of the following month. Nonresident means any individual domiciled outside South Carolina and any other entity whose principal place of business is outside South Carolina. (B) All other withholding agents are required to make a return and remit withheld funds on the last day of the month following the preceding calendar quarter for which funds were withheld. Every withholding agent required to make a return or deposit and pay taxes to the Internal Revenue Service under Section 6302 of the Internal Revenue Code of 1986, as amended, and all applicable regulations effective as of December 31, 1989, shall at the same time, make a return or deposit and pay to the commission any taxes deducted and withheld under the provisions of Sections 12-9-310 to 12-9-370." D. Subsection A of this section is effective for taxable years beginning after 1989. Subsection B of this section takes effect upon approval by the Governor but the amendment to Section 12-16- 20 of the 1976 Code in this section does not change the effective date of Chapter 16 of Title 12 of the 1976 Code as provided in Section 10 of Act 70 of 1987. Subsection C of this section is effective with respect to withholding payments required after June 30, 1990. SECTION 4 TO AMEND SECTION 12-21-2720, AS AMENDED, OF THE 1976 CODE, RELATING TO THE LICENSE FEES FOR COIN-OPERATED DEVICES, SO AS TO RAISE THE ANNUAL LICENSE FEE FOR MACHINES OF THE NONPAYOUT TYPE, IN-LINE PIN GAME, OR VIDEO GAME WITH A FREE PLAY FEATURE FROM SIX HUNDRED TO ONE THOUSAND FIVE HUNDRED DOLLARS. A. The first paragraph preceding Section 12-21-2720(1), as amended by Section 3A, Part II, Act 170 of 1987, is further amended to read: "Every person who maintains for use or permits the use of, on any place or premises occupied by him, any of the machines or devices described below shall apply for and procure from the South Carolina Tax Commission a license for the privilege of making use of every such machine in South Carolina and shall pay for the license a tax of twenty-five dollars for each machine described in item (1) of this section, one hundred dollars for each machine described in item (2) of this section, and one thousand five hundred dollars for each machine described in item (3) of this section." B. This section takes effect July 1, 1990. SECTION 5 Deleted SECTION 6 TO AMEND SECTION 44-93-160 OF THE 1976 CODE, RELATING TO THE FEES ON COMMERCIAL TREATMENT OF INFECTIOUS WASTE, SO AS TO INCREASE THE FEES; AND TO AMEND SECTION 44-93-170, RELATING TO THE INFECTIOUS WASTE CONTINGENCY FUND, SO AS TO PROVIDE THAT THE FUND AMOUNT AFTER WHICH TWO-THIRDS OF THE INFECTIOUS WASTE TREATMENT FEE MUST BE CREDITED TO THE INFECTIOUS WASTE CONTINGENCY FUND IS INCREASED FROM ONE MILLION TO FIVE MILLION DOLLARS; AND TO AMEND THE 1976 CODE, BY ADDING SECTION 44-93-210 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO ANNUALLY ESTIMATE THE AMOUNT OF INFECTIOUS WASTE TO BE GENERATED IN THIS STATE AND TO PLACE A ONE-TWELFTH OF THE ANNUAL ESTIMATE LIMIT ON THE QUANTITY OF INFECTIOUS WASTE THAT MAY BE BURNED IN A MONTH BY A LICENSED COMMERCIAL WASTE INCINERATOR SUBJECT TO A FIFTEEN HUNDRED TON A MONTH MINIMUM BURNING ALLOWANCE, TO EXEMPT IN-STATE HOSPITAL AND NONPROFIT GENERATED WASTES, TO DEFINE PERMITTED COMMERCIAL INFECTIOUS WASTE INCINERATOR FACILITY, TO MAKE SPECIAL PROVISION FROM JULY THROUGH DECEMBER, 1990, AND TO AUTHORIZE AN INCREASE IN THE FEES FOR BURNING INFECTIOUS WASTE WHERE THE LIMITATIONS PER MONTH ON THE TONNAGE OF WASTE WHICH MAY BE BURNED ARE UNLAWFULLY VIOLATED, AND TO PROVIDE THAT THE INCREASED FEE MUST BE DEPOSITED IN THE INFECTIOUS WASTE CONTINGENCY FUND. A. Section 44-93-160(A) of the 1976 Code, as added by Act 134 of 1989, is amended to read: "(A) There is imposed a fee on the commercial treatment of infectious waste in this State equal to thirty dollars a ton on the pretreatment weight of infectious waste generated outside of this State and twenty-five dollars a ton on the pretreatment weight of infectious waste generated within this State." B.Section 44-93-170 of the 1976 Code, as added by Act 134 of 1989, is amended to read: "Section 44-93-170. The department shall establish an Infectious Waste Contingency Fund to insure the availability of funds for response actions necessary at commercial infectious waste treatment facilities and necessary from accidents in the transportation of infectious waste and to defray the cost of governmental response action associated with infectious waste. This fund must be financed by the fees imposed pursuant to Section 44-93-160. The revenue derived from the fees on waste must be credited to the Infectious Waste Contingency Fund as follows: an amount equal to two-thirds of the fees must be deposited into the fund and an amount equal to one-third of the fees must be held in a separate and distinct account within the fund for the purpose of being returned to each county in which the fee imposed by Section 44-93-160 is collected. When the amount of fees held in the Infectious Waste Contingency Fund meets or exceeds five million dollars, two-thirds of all subsequent fees collected must be remitted to the Hazardous Waste Contingency Fund established pursuant to Section 44-56-160(A) to assist in defraying the costs of governmental response actions at uncontrolled hazardous waste sites, with the remaining one-third of all subsequent fees collected pursuant to Section 44-93-160 continuing to be placed into a separate and distinct account for counties as provided in this item. Interest earned by the funds must be credited to the fund and that portion of interest earned attributable to the county account must be credited to the county account. Interest credited to the county account must be distributed in the same proportion as funds are distributed to counties pursuant to this section. Proceeds of the county account returned to a county pursuant to this section must be released by the State Treasurer upon the written request of a majority of the legislative delegation of the recipient county." C. Chapter 93, Title 44 of the 1976 Code is amended by adding: "Section 44-93-210. (A) Beginning November 1, 1990, and annually thereafter, the department shall estimate and publish the amount of infectious waste it expects to be generated within this State during the succeeding calendar year. No permitted commercial infectious waste incinerator facility may burn more than one-twelfth of the annual estimate of infectious waste during any one month of the year to which the estimate applies. However, at no time may the limit on the amount of infectious waste burned in a month be less than fifteen hundred tons. (B) The limitation on the tonnage of infectious waste does not apply to infectious waste treated by hospitals or generator facilities if the waste is generated in this State and is incinerated on a nonprofit basis. (C) For purposes of this section, a permitted commercial infectious waste incinerator facility means a site where infectious waste is incinerated regardless of the number of incinerator units or the ownership of the units." D. From July through December, 1990, no more than fifteen hundred tons of infectious waste may be burned in any one month by a permitted commercial infectious waste incinerator facility in this State. E. The provisions of subsections C and D of this section must be construed as separate provisions. If a provision is judged to be invalid by a court of law of this State, the court's decree shall apply only to the provision and action specified and shall have no effect on any other provision unless stated in the court's decree. The invalidity does not affect other provisions or applications of subsections C and D of this section which may be given effect without the invalid provision or application and, pursuant to this requirement, the provisions of this section are severable. F. In the event the infectious waste tonnage limitations in any month are unlawfully exceeded, at a commercial waste incinerator facility, a five dollar per ton increase in the fees imposed pursuant to Section 44-93-160(A) is imposed retroactively on the excess tonnage burned in that month. The funds received from this fee increase must also be deposited in the Infectious Waste Contingency Fund established in Section 44-93-170. The fee increase imposed by this subsection is in addition to any other civil or criminal penalties which may be imposed by law for the tonnage violation. G. This section takes effect July 1, 1990. SECTION 7 Deleted SECTION 8 Deleted *SECTION 9 TO REPEAL SECTION 59-101-190 OF THE 1976 CODE, RELATING TO THE DEAN'S COMMITTEE ON MEDICAL DOCTOR EDUCATION. Section 59-101-190 of the 1976 Code is repealed.* Indicates those vetoes sustained by the General Assembly June 19, 1990. (Provisions printed in italic boldface were vetoed by the Governor June 13, 1990.)SECTION 10 Deleted SECTION 11 TO AMEND SECTION 59-26-20, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DUTIES OF THE STATE BOARD OF EDUCATION AND COMMISSION ON HIGHER EDUCATION, SO AS TO ESTABLISH THE GOVERNOR'S TEACHING SCHOLARSHIP LOAN PROGRAM FOR THE HIGHER EDUCATION OF TALENTED AND QUALIFIED RESIDENTS OF THIS STATE WHO AGREE TO TEACH IN THE PUBLIC SCHOOLS OF THIS STATE, TO ESTABLISH REQUIREMENTS FOR THE EXECUTION OF THE LOAN AGREEMENTS, TO PROVIDE FOR THE ADMINISTRATION OF THE PROGRAM, TO PROVIDE FOR APPROPRIATIONS FOR THE PROGRAM, AND FOR THE USE OF THE FUNDS GENERATED BY REPAYMENT, TO PROVIDE FOR THE CANCELLATION OF TWENTY PERCENT OF THE DEBT FOR EACH COMPLETED YEAR OF TEACHING, TO PROVIDE FOR WHEN THE LOAN BECOMES DUE AND PAYABLE FOR NONCOMPLIANCE WITH ITS TERMS, AND TO DEFINE TALENTED AND QUALIFIED RESIDENTS AS FRESHMEN STUDENTS GRADUATING IN THE TOP TEN PERCENTILE OF THEIR HIGH SCHOOL CLASS, OR WHO RECEIVE A COMBINED SCHOLASTIC APTITUDE TEST SCORE OF AT LEAST ELEVEN HUNDRED, AND AS ENROLLED STUDENTS WHO HAVE COMPLETED ONE YEAR (TWO SEMESTERS OR THE EQUIVALENT) OF COLLEGIATE WORK AND WHO HAVE EARNED A CUMULATIVE GRADE POINT AVERAGE OF AT LEAST A 3.5 ON A 4.0 SCALE, AND TO REQUIRE LOAN RECIPIENTS TO MAINTAIN AT LEAST A 3.0 GRADE POINT AVERAGE ON A 4.0 SCALE TO REMAIN ELIGIBLE FOR THE LOAN. Section 59-26-20 of the 1976 Code, as last amended by Act 194 of 1989, is further amended by adding an appropriately lettered item to read: "( ) The Commission on Higher Education in consultation with the State Department of Education and the staff of the South Carolina Student Loan Corporation, shall develop a Governor's Teaching Scholarship Loan Program to provide talented and qualified state residents loans not to exceed five thousand dollars a year to attend public or private colleges and universities for the purpose of becoming certified teachers employed in the public schools of this State. The recipient of a loan is entitled to have up to one hundred percent of the amount of the loan plus the interest on the loan canceled if he becomes certified and teaches in the public schools of this State for at least five years. The loan is canceled at the rate of twenty percent of the total principal amount of the loan plus interest on the unpaid balance for each complete year of teaching service in a public school. In case of failure to make a scheduled repayment of any installment, failure to apply for cancellation or deferment of the loan on time, or noncompliance by a borrower with the purpose of the loan, the entire unpaid indebtedness plus interest is, at the option of the commission, immediately due and payable. The recipient shall execute the necessary legal documents to reflect his obligation and the terms and conditions of the loan. The loan program must be administered by the South Carolina Student Loan Corporation. Funds generated from repayments to the loan program must be retained in a separate account and utilized as a revolving account for the purpose of making additional loans. Appropriations for loans and administrative costs must come from the Education Improvement Act of 1984 Fund, on the recommendation of the Commission on Higher Education to the State Treasurer, for use by the corporation. The select committee shall review this scholarship loan program annually and report its findings and recommendations to the General Assembly. For purposes of this item, a 'talented and qualified state resident' includes freshmen students who graduate in the top ten percentile of their high school class, or who receive a combined verbal plus mathematics Scholastic Aptitude Test score of at least eleven hundred and enrolled students who have completed one year (two semesters or the equivalent) of collegiate work and who have earned a cumulative grade point average of at least 3.5 on a 4.0 scale. To remain eligible for the loan while in college, the student must maintain at least a 3.0 grade point average on a 4.0 scale." SECTION 12 TO AMEND SECTION 1-1-1020 OF THE 1976 CODE, RELATING TO THE AUTHORITY OF THE DIVISION OF GENERAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD TO PURCHASE EQUIPMENT FOR RENT, LEASE, OR RESALE TO STATE AGENCIES, SO AS TO INCREASE THE AMOUNT THE DIVISION MAY BORROW FOR THESE PURPOSES FROM THE STATE INSURANCE RESERVE FUND FROM TWENTY-FIVE TO THIRTY-FIVE MILLION DOLLARS, AND TO PROVIDE THAT THESE LOANS MAY NOT BE IN AN AMOUNT THAT JEOPARDIZES THE ACTUARIAL SOUNDNESS OF THE FUND. Section 1-1-1020 B. of the 1976 Code is amended to read: "B. For the purpose of carrying out the provisions of subsection A, the Division of General Services may borrow up to thirty-five million dollars from the State Insurance Reserve Fund at an interest rate of eight percent a year but these loans may not be made in an amount that jeopardizes the actuarial soundness of the fund." SECTION 13 TO AMEND CHAPTER 11, TITLE 8 OF THE 1976 CODE, RELATING TO STATE OFFICERS AND EMPLOYEES, BY ADDING ARTICLE 11, SO AS TO ESTABLISH THE STATE EMPLOYEE PAY PLAN. Chapter 11, Title 8 of the 1976 Code is amended by adding: "Article 11 State Employee Pay Plan Section 8-11-910. It is the intent of the General Assembly that state employees receive any pay increase appropriated in a consistent and uniform manner. Section 8-11-920. For purposes of this article: (1) 'Base pay increase' means an increase applicable to all permanent state employees who qualify. (2) 'Board' means the State Budget and Control Board. (3) 'Performance increase' means a pay increase applicable to permanent state employees based upon appraisal ratings of: (a) below performance requirements; (b) meets performance requirements; (c) exceeds performance requirements; and (d) substantially exceeds performance requirements. (4) 'Bonus' pay means a one-time payment for exceptional service and may be paid to employees who have performance ratings of 'exceeds' or 'substantially exceeds'. Employees who have performance ratings of 'meets performance requirements' may be given the bonus pay upon approval of a special request by the agency head. This special request may not be used for agency-wide distribution of bonus pay. This payment is not a part of the employee's base salary and is not earnable compensation for purposes of employer or employee contributions to the respective retirement systems. Section 8-11-930. The board and the General Assembly shall give first consideration to keeping the pay program for state employees competitive with the prevailing salaries, wages, and benefits in the private sector. To accomplish this, the board's Division of Human Resource Management shall submit an analysis of prevailing state and private sector salaries, wages, and benefits to the board, the Ways and Means Committee of the House of Representatives, and the Senate Finance Committee. This report must be completed every other year with the first report submitted no later than July 31, 1991. In determining the percentage of increase to be applied as a base pay increase, the board and the General Assembly and its committees shall consider the relative market value of each job classification. The minimum and maximum salary of each grade may be adjusted by law for the applicable year. Section 8-11-940. (A) Performance increases must be based upon performance appraisals containing the following categories: (1) below performance requirements--no increase; (2) meets performance requirements--two percent increase; (3) exceeds performance requirements--three percent increase; (4) substantially exceeds performance requirements--four percent increase. The dollar amount of each performance increase must be added to the employee's base pay until the pay level of the employee has reached the maximum of his grade or executive compensation level. After the employee has reached maximum pay in his grade or executive compensation level, he may continue to receive performance pay but it must not be added to the base pay. (B) The estimated cost of these performance increases, based upon predetermined norms, is two and one-half percent of the payroll of each agency. If the General Assembly provides more or less than two and one-half percent for performance increases, the percentage of increase of each category of performance must be adjusted accordingly. Section 8-11-945. For the purposes of this article, local health care providers of the State Department of Mental Retardation, the South Carolina Commission on Alcohol and Drug Abuse, and the South Carolina Commission on Aging are eligible for the base pay increase and performance pay increase as prescribed. Section 8-11-950. Funding for bonus payments when provided are given to reward exceptional service. Bonus payments must be given in accord with rules established by the board. The board and the General Assembly shall state the amount provided for bonus payment in terms of a percentage of agency payrolls and in dollar figures. Section 8-11-960. After the General Assembly appropriates amounts for base pay increases, performance pay, and bonus payments, the board shall determine the maximum amount available to each agency and the rules which apply if the merit increases proposed by the agency do not fit the norm. The board's Division of Human Resource Management shall perform sample or detailed audits, or both, as necessary, to insure agency compliance with the General Assembly's intent for a fair and equitable distribution of performance pay and bonus pay. The Director of Human Resource Management shall submit to the board and the General Assembly an analysis of the audits, together with the analysis of prevailing state and private sector salaries, wages, and benefits required pursuant to Section 8-11-930." SECTION 14 TO AMEND THE 1976 CODE BY ADDING SECTION 1-11-26 SO AS TO REQUIRE GRANT FUNDS RECEIVED BY A COUNTY, MUNICIPALITY, POLITICAL SUBDIVISION, OR OTHER ENTITY FROM THE LOCAL GOVERNMENT DIVISION OF THE STATE BUDGET AND CONTROL BOARD TO BE DEPOSITED IN A SEPARATE FUND, TO PROVIDE THAT DISBURSEMENTS MAY BE MADE ONLY ON THE WRITTEN AUTHORIZATION OF THE PERSON WHO SIGNED THE GRANT APPLICATION OR HIS SUCCESSOR, TO PROVIDE PENALTIES FOR VIOLATIONS, TO PROVIDE THAT IT IS NOT A DEFENSE TO AN INDICTMENT UNDER THIS SECTION THAT GRANT FUNDS WERE USED FOR OTHER GOVERNMENTAL PURPOSES OR THAT THE PURPOSES OF THE GRANT WERE MET BY OTHER FUNDS, AND TO REQUIRE THE DIVISION TO FURNISH A COPY OF THIS SECTION TO GRANTEES. A. Chapter 11, Title 1 of the 1976 Code is amended by adding: "Section 1-11-26. (A) Grant funds received by a county, municipality, political subdivision, or other entity from the Division of Local Government of the State Budget and Control Board must be deposited in a separate fund and may not be commingled with other funds, including other grant funds. Disbursements may be made from this fund only on the written authorization of the individual who signed the grant application filed with the division, or his successor, and only for the purposes specified in the grant application. A person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined five thousand dollars or imprisoned for six months, or both. (B) It is not a defense to an indictment alleging a violation of this section that grant funds received from the Division of Local Government were used by a grantee or subgrantee for governmental purposes other than those specified in the grant application or that the purpose for which the grant was made by the Division of Local Government was accomplished by funds other than grant funds. (C) The Division of Local Government of the State Budget and Control Board shall furnish a copy of this section to a grantee when the grant is awarded." B.This section takes effect July 1, 1990, and applies with respect to grants awarded after June 30, 1990. SECTION 15 TO AMEND SECTION 42-7-67 OF THE 1976 CODE, RELATING TO DISABILITY AND MEDICAL BENEFITS FOR MEMBERS OF THE STATE AND NATIONAL GUARD, SO AS TO PROVIDE FOR THE COORDINATION OF STATE AND FEDERAL BENEFITS; TO AMEND SECTION 42-7-75, AS AMENDED, RELATING TO THE PAYMENT OF WORKERS' COMPENSATION PREMIUMS BY STATE AGENCIES AND THE STATE TREASURER'S DUTIES PERTAINING TO THE WORKERS' COMPENSATION FUND, SO AS TO PROVIDE FOR THE METHOD OF DETERMINING PREMIUMS FOR THE STATE AND NATIONAL GUARD; TO AMEND SECTION 42-15- 40, RELATING TO THE TIME FOR FILING A WORKERS' COMPENSATION CLAIM, SO AS TO PROVIDE FOR THE TIME LIMIT FOR A CLAIM BY A MEMBER OF THE NATIONAL GUARD; AND TO AMEND SECTION 42-19-10, AS AMENDED, RELATING TO AN EMPLOYEE'S RECORD AND REPORT OF INJURIES, SO AS TO PROVIDE FOR THE RECORD AND REPORT OF A MEMBER OF THE NATIONAL GUARD. A. Section 42-7-67 of the 1976 Code is amended to read: "Section 42-7-67. (A) For the purpose of coordinating benefits payable by the federal and state government for the death or injury of a member of the South Carolina National Guard, workers' compensation benefits provided by the State under this title are reduced by the amount of benefits due and payable from the federal government. Federal benefits must be exhausted before state benefits, if any, are due. However, upon separation from the South Carolina National Guard, an injured guard member may proceed under this title after his federal claim is finalized. (B) For members of the South Carolina State and National Guard injured while so employed, the extent, duration, and termination of disability and medical benefits under this title must be determined by reference to the member's civilian employment, if any, without considering the member's military position. If the member does not have civilian employment, reference may be made to the member's military position. (C) If the wage benefit under this title is greater than the federal wage benefit, including pay and allowances, the service member may elect to receive the benefit under this title in lieu of the federal wage benefit and the offset provision in subsection (A) does not apply." B.The first paragraph of Section 42-7-75 of the 1976 Code, as last amended by Section 35, Part II, Act 170 of 1987 is further amended to read: "All state agencies shall pay workers' compensation premiums according to Section 42-7-70, as determined by the State Workers' Compensation Fund. Calculation of premiums for the Adjutant General's Office must exclude losses arising out of service as a member of the South Carolina State and National Guard. In lieu of premiums for those losses the Adjutant General shall pay, at the beginning of each premium year, the amount estimated by the fund to be required to cover actual workers' compensation benefits to guard members during the premium year. If the amount actually paid as benefits differs from the estimated pay out advanced under this paragraph, the difference must be debited or credited to the Adjutant General's account in the same manner that an actual adjusted premium is handled." C. Section 42-15-40 of the 1976 Code is amended to read: "Section 42-15-40. The right to compensation under this title is barred unless a claim is filed with the commission within two years after an accident, or if death resulted from accident, within two years of the date of death. However, for occupational disease claims the two-year period does not begin to run until the employee concerned has been diagnosed definitively as having an occupational disease and has been notified of the diagnosis. For the death or injury of a member of the South Carolina National Guard, as provided for in Section 42-7-67, the time for filing a claim is two years after the accident or one year after the federal claim is finalized, whichever is later. The filing required by this section may be made by registered mail, and the registry within the time periods set forth in this section constitutes timely filing." D. The first paragraph of Section 42-19-10 of the 1976 Code is amended to read: "Every employer shall keep a record of all injuries, fatal or otherwise, received by his employees in the course of their employment on blanks approved by the commission. Within ten days after the occurrence and knowledge of it, as provided in Section 42-15-20, of an injury to an employee requiring medical or surgical attention, a report of the injury must be made in writing and mailed to the commission on blanks approved by it for this purpose. However, for the injury of a South Carolina National Guard member as provided for in Section 42-7-67, the ten days must be counted from the date the employer, the South Carolina National Guard, has knowledge that the federal government has denied benefits to the injured guard member or that benefits or additional benefits may be due under the provisions for South Carolina Workers' Compensation." E. The amendment to Section 42-7-75 of the 1976 Code, as contained in Subsection B. of this section, applies to claims occurring after June 30, 1985. *SECTION 16 TO AMEND SECTION 48-28-100 OF THE 1976 CODE, RELATING TO THE FOREST RENEWAL FUND, SO AS TO LIMIT NEW FUNDING AGREEMENTS AND TO ALLOW PAYMENT IN A FISCAL YEAR OF CONTRACTUAL REQUIREMENTS WHICH EXCEED THE LIMITATION. The third paragraph of Section 48-28-100 of the 1976 Code is amended to read: "In any fiscal year, new funding agreements from the forest renewal fund are limited to five times the amount of the state appropriation for the Forest Renewal Law for that year plus the amount of any cancellation or slippage funds from previous agreements. Whenever necessary to comply with the terms of a contract, payments in a fiscal year may exceed five times the amount of the state appropriation."* Indicates those vetoes sustained by the General Assembly June 19, 1990. (Provisions printed in italic boldface were vetoed by the Governor June 13, 1990.)SECTION 17 TO AMEND SECTION 40-7-115, AS AMENDED, OF THE 1976 CODE, RELATING TO THE REQUIREMENTS FOR BARBER TRAINING IN A SHOP, SO AS TO ESTABLISH AN EXAMINATION FEE AND AN ANNUAL INSTRUCTOR'S FEE IN THE AMOUNT OF FIFTY DOLLARS, TO REQUIRE RENEWAL AS OF JUNE THIRTIETH OF EACH YEAR, AND TO DELETE REFERENCES TO FEES PROMULGATED BY REGULATION. A.Section 40-7-115 of the 1976 Code, as amended by Act 87 of 1989, is further amended to read: "Section 40-7-115. A barber training a student in a shop is required to have had three years' experience as a registered barber and must have been examined by the South Carolina Board of Barber Examiners and determined to be qualified to train a student barber under laws governing barber training in the State. The fee to be paid by the registered barber for an examination to be qualified to train a student in a shop is fifty dollars, and the fee must accompany the application. Barbers found qualified after examination must be issued an instructor's license which must be renewed as of June thirtieth of each year. The annual renewal fee is fifty dollars." B. This section takes effect July 1, 1990. SECTION 18 Deleted SECTION 19 TO AMEND SECTION 35-1-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN REGARD TO THE UNIFORM SECURITIES ACT, SO AS TO DEFINE THE TERM "INVESTMENT ADVISER REPRESENTATIVE", TO AMEND SECTION 35-1-310, RELATING TO EXEMPT SECURITIES, SO AS TO FURTHER PROVIDE FOR CERTAIN SECURITIES WHICH ARE EXEMPT, TO AMEND SECTIONS 35-1-420, 35-1-440, 35-1-510, 35-1-520, 35-1-550, 35-1- 560, 35-1-570, AND 35-1-580 OF THE 1976 CODE, RELATING TO THE REGISTRATION OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND CERTAIN PROCEDURES FOR AND REQUIREMENTS OF REGISTRATION, SO AS TO FURTHER PROVIDE FOR THESE REGISTRATION REQUIREMENTS AND FOR THE REGISTRATION OF INVESTMENT ADVISER REPRESENTATIVES, AND TO AMEND SECTION 35-1-480, RELATING TO REGISTRATION FEES, SECTION 35-1-900, RELATING TO FILING FEES FOR REGISTRATION STATEMENTS, AND SECTION 35-1-980, RELATING TO AMENDED REGISTRATION STATEMENTS AND THE FILING FEES FOR THE AMENDED STATEMENTS, SO AS TO REVISE THESE FEES. A.Section 35-1-20 of the 1976 Code is amended by adding a new item (6A) to read: "(6A) 'Investment adviser representative' means a partner, officer, director, individual occupying a similar status or performing similar functions, or other individual employed by or associated with an investment adviser, except clerical personnel, who: (a) makes any recommendations or otherwise renders advice regarding securities directly to clients, (b) manages accounts or portfolios of clients, (c) determines which recommendations or advice regarding securities must be given, (d) solicits, offers, or negotiates for the sale of or sells investment advisory services, or (e) directly supervises investment adviser representatives, unless the investment adviser representatives are already required to register due to their role as supervisors. The persons and entities excluded from the definition of 'investment advisor' under item (6) of this section are also excluded from the definition of 'investment adviser representative' under this item (6A)." B. Section 35-1-310(7) of the 1976 Code is amended to read: "(7) Securities listed on stock exchanges.--Any security listed or approved for listing upon notice of issuance on the New York Stock Exchange, the American Stock Exchange, the Midwest Stock Exchange, the NASDAQ/National Market System, or that other securities exchange as the Securities Commissioner by regulation may designate, any other security of the same issuer which is of senior or substantially equal rank, any security called for by subscription rights or warrants so listed or approved or any warrant or right to purchase or subscribe to any of the foregoing;". C. Section 35-1-420 of the 1976 Code is amended to read: "Section 35-1-420. It is unlawful for any person to transact business in this State as an investment adviser or investment adviser representative unless (a) he is so registered under this chapter, (b) he is registered as a broker-dealer without the imposition of a condition under item (5) of Section 35-1-530, or (c) his only clients in this State are investment companies as defined in the Investment Company Act of 1940 or insurance companies." D. Section 35-1-440 of the 1976 Code is amended to read: "Section 35-1-440. A broker-dealer, agent, investment adviser, or investment adviser representative may obtain an initial or renewal registration by filing with the Securities Commissioner an application together with a consent to service of process pursuant to Section 35-1-1410. The application must contain whatever information the Securities Commissioner by regulation requires concerning these matters as (a) the applicant's form and place of organization, (b) the applicant's proposed method of doing business, (c) the qualifications and business history of the applicant, (d) in the case of a broker-dealer or investment adviser, the qualifications and business history of any partner, officer or director, any person occupying a similar status or performing similar functions or any person directly or indirectly controlling the broker-dealer or investment adviser, (e) in the case of an investment adviser, the qualifications and business history of any employee, (f) any injunction or administrative order or conviction of a misdemeanor involving a security or any aspect of the securities business and any conviction of a felony and (g) the applicant's financial condition and history." E. Section 35-1-480 of the 1976 Code is amended to read: "Section 35-1-480. Every applicant for initial or renewal registration shall pay the following filing fees: (1) Broker-dealer $200.00 (2) Agent $ 50.00 (3) Investment Advisor $200.00 (4) Investment Advisor Representative $ 50.00 When the application is denied or withdrawn, the filing fee must not be refunded." F. Section 35-1-510 of the 1976 Code is amended to read: "Section 35-1-510. Registered broker-dealers, agents, investment advisers, and investment adviser representatives shall post surety bonds in amounts of fifty thousand dollars for broker-dealers and investment advisers and ten thousand dollars for agents and investment adviser representatives, conditioned that the registrant will comply with the provisions of this chapter and those orders and regulations as the commissioner may from time to time prescribe. The bond may be so drawn as to cover the original registration and any renewal of the registration. Any appropriate deposit of cash or securities must be accepted in lieu of the bond. Every bond must provide that no suit may be maintained to enforce any liability on the bond unless brought within three years after the sale or other act upon which the suit is based and must also provide that the liability of the surety on each bond to all persons aggrieved may in no event exceed in the aggregate the penal sum of the bond. No bond is required for persons who are members of the National Association of Security Dealers, Inc., or the Securities Investor Protection Corporation." G. (A) Section 35-1-520(1)(v) of the 1976 Code is amended to read: "(v) Is the subject of an order of the Securities Commissioner denying, suspending, or revoking registration as a broker-dealer, agent, investment adviser, or investment adviser representative;". (B) Section 35-1-520(1)(vi) of the 1976 Code is amended to read: "(vi) Is the subject of an order entered within the past five years by the securities administrator of any other state or by the Securities and Exchange Commission denying or revoking registration as a broker-dealer, agent, investment adviser, or investment adviser representative or the substantial equivalent of those terms as defined in this chapter, is the subject of an order of the Securities and Exchange Commission suspending or expelling him from a national securities exchange or national securities association registered under the Securities Exchange Act of 1934 or is the subject of a United States post office fraud order; but (1) the Securities Commissioner may not institute a revocation or suspension proceeding under this item (vi) more than one year from the date of the order relied on and (2) he may not enter an order under this item (vi) on the basis of an order under another state act unless that order was based on facts which would currently constitute a ground for an order under this section;". H. Section 35-1-550 of the 1976 Code is amended to read: "Section 35-1-550. The Securities Commissioner may by order summarily postpone or suspend registration pending final determination of any proceeding under this section. Upon the entry of the order, the Securities Commissioner shall promptly notify the applicant or registrant, as well as the employer or prospective employer if the applicant or registrant is an agent or investment adviser representative, that it has been entered and of the reasons for the order and that within fifteen days after the receipt of a written request the matter will be set down for hearing. If no hearing is requested and none is ordered by the Securities Commissioner, the order remains in effect until it is modified or vacated by the Securities Commissioner. If a hearing is requested or ordered, the Securities Commissioner, after notice of and opportunity for hearing, may modify or vacate the order or extend it until final determination." I. Section 35-1-560 of the 1976 Code is amended to read: "Section 35-1-560. If the Securities Commissioner finds that any registrant or applicant for registration is no longer in existence or has ceased to do business as a broker-dealer, agent, investment adviser, or investment adviser representative, or is subject to an adjudication of mental incompetence or to the control of a committee, conservator, or guardian, or cannot be located after reasonable search, the Securities Commissioner may by order cancel the registration or application." J. Section 35-1-570 of the 1976 Code is amended to read: "Section 35-1-570. Withdrawal from registration as a broker- dealer, agent, investment adviser, or investment adviser representative becomes effective thirty days after receipt of an application to withdraw or within that shorter period of time as the Securities Commissioner may determine, unless a revocation or suspension proceeding is pending when the application is filed or a proceeding to revoke or suspend or to impose conditions upon the withdrawal is instituted within thirty days after the application is filed. If a proceeding is pending or instituted, withdrawal becomes effective at that time and upon those conditions as the Securities Commissioner by order determines. If no proceeding is pending or instituted and withdrawal automatically becomes effective, the Securities Commissioner may nevertheless institute a revocation or suspension proceeding under item (ii) of subsection (1) of Section 35-1-520 within one year after withdrawal became effective and enter a revocation or suspension order as of the last date on which registration was effective." K. Section 35-1-580 of the 1976 Code is amended to read: "Section 35-1-580. No order may be entered under any part of Sections 35-1-520 to 35-1-570 except the first sentence of Section 35-1-550 without (a) appropriate prior notice to the applicant or registrant, as well as the employer or prospective employer if the applicant or registrant is an agent or investment adviser representative, (b) opportunity for hearing, and (c) written findings of fact and conclusions of law." L. Section 35-1-900 of the 1976 Code is amended to read: "Section 35-1-900. Every person filing a registration statement shall pay a filing fee of five hundred dollars. No registration statement may be renewed or reregistered unless another filing fee of five hundred dollars is paid. When a registration statement is withdrawn before the effective date or a preeffective stop order is entered under Sections 35-1-1010 to 35-1-1050, the Securities Commissioner shall retain the entire filing fee." M. Section 35-1-980 of the 1976 Code is amended to read: "Section 35-1-980. A registration statement relating to a security issued by a face-amount certificate company or a redeemable security issued by an open-end management company or unit investment trust, as those terms are defined in the Investment Company Act of 1940, may be amended after its effective date so as to increase the securities specified as proposed to be offered. The amendment becomes effective when the Securities Commissioner orders." N.The caption to Article 5, Chapter 1 of Title 35 of the 1976 Code is amended to read: "Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives". O. This section takes effect July 1, 1990. *SECTION 20 TO AMEND SECTION 16-3-1180, AS AMENDED, OF THE 1976 CODE, RELATING TO THE AMOUNT OF CRIME VICTIM AWARDS, SO AS TO AUTHORIZE THE PAYMENT FOR MENTAL HEALTH COUNSELING SESSIONS FOR THE NUMBER OF SESSIONS WITHIN THE NINETY-DAY-PERIOD OR FIFTEEN SESSIONS, WHICHEVER IS GREATER. Section 16-3-1180(A)(1) of the 1976 Code, as last amended by Act 406 of 1988, is further amended to read: "(1) reasonable and customary charges for medical services, including mental health counseling, required and rendered as a direct result of the injury on which the claim is based, as long as these services are rendered by a licensed professional. Payment for mental health counseling is limited to the number of sessions during a ninety-day-period beginning on the date of the first counseling session or fifteen sessions, whichever is greater;"* Indicates those vetoes sustained by the General Assembly June 19, 1990. (Provisions printed in italic boldface were vetoed by the Governor June 13, 1990.)SECTION 21 TO AMEND THE 1976 CODE BY ADDING SECTION 61-9-626 SO AS TO PROVIDE THAT WINE PRODUCED OUTSIDE THE STATE, WHICH HAS NOT BEEN APPROVED OR LICENSED FOR SALE OR DISTRIBUTION IN THIS STATE, MAY BE SOLD IN SOUTH CAROLINA PURSUANT TO SPECIFIED PROCEDURES. The 1976 Code is amended by adding: "Section 61-9-626. An individual may order wine produced outside this State, which has not been approved or licensed for sale or distribution in this State, from an in-state wholesaler by placing a special order for this wine with the out-of-state winery. The wine may then be shipped by the winery to that wholesaler who, after paying or affixing the necessary taxes or tax stamps, is authorized to sell this wine to that individual through a licensed retailer." SECTION 22 Deleted SECTION 23 Deleted SECTION 24 TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-54-250 SO AS TO AUTHORIZE THE SOUTH CAROLINA TAX COMMISSION TO REQUIRE PAYMENTS OF TWENTY THOUSAND DOLLARS OR MORE DUE ON A RETURN TO BE PAID BY A METHOD IN WHICH THE FUNDS ARE AVAILABLE IMMEDIATELY TO THE STATE, TO REQUIRE A TAXPAYER TO PROVIDE THE COMMISSION WITH EVIDENCE OF THE PAYMENT, TO PROVIDE FOR PENALTIES AND INTEREST ON NONTIMELY PAYMENTS, TO AUTHORIZE THE COMMISSION TO ESTABLISH LATER DUE DATES, TO AUTHORIZE THE COMMISSION AND THE STATE TREASURER TO PROMULGATE REGULATIONS AND PRESCRIBE RULES AND PROCEDURES TO IMPLEMENT THE PAYMENT METHOD, AND TO PROVIDE THAT PAYMENT IN IMMEDIATELY AVAILABLE FUNDS AND FILING OF THE RETURN ARE CONSIDERED SIMULTANEOUS ACTS FOR PURPOSES OF PENALTIES AND INTEREST FOR FAILURE TO PAY AND FAILURE TO FILE AND PROVIDE THAT PENALTIES AND INTEREST MUST BE CALCULATED BASED ON THE LATER OF THE RETURN POSTMARK DATE OR PAYMENT DATE. Article 1, Chapter 54, Title 12 of the 1976 Code is amended by adding: "Section 12-54-250. (A) The South Carolina Tax Commission may require, consistent with the cash management policies of the State Treasurer, that any person owing twenty thousand dollars or more in connection with any return, report, or other document to be filed with the commission shall pay the tax liability to the State no later than the date the payment is required by law to be made in funds which are available immediately to the State on the date of payment. Payment in immediately available funds may be made by any means established by the commission, with the approval of the State Treasurer, which insures the availability of those funds to the State on the date of payment. Evidence of the payment must be furnished to the commission on or before the due date of the tax as provided by law. Failure to make timely payment in immediately available funds or failure to provide evidence of payment in a timely manner subjects the taxpayer to penalties and interest as provided by law for delinquent or deficient tax payments. (B) The commission by rule may prescribe alternative periodic filing and payment dates later than the dates otherwise provided by law for any taxes collected by the commission in those instances where it is considered to be in the best interest of the State. An alternative date may not be later than the last day of the month in which the tax was otherwise due. (C) The commission may prescribe rules and the State Treasurer banking procedures necessary for the administration of the provisions of this section. (D) Payment by immediately available funds and filing of the return are considered simultaneous acts with respect to penalties and interest for failure to file and failure to pay. Penalties and interest must be calculated based on the later of the return postmark date or payment date." SECTION 25 TO AMEND SECTION 23-1-65 OF THE 1976 CODE, RELATING TO APPLICATION FEES FOR APPOINTMENT AS A STATE CONSTABLE, SO AS TO PROVIDE THAT NO FEES ARE REQUIRED OF LAW ENFORCEMENT OFFICERS WHO HAVE RETIRED BECAUSE OF DISABILITY OR WHO RETIRED WITH TWENTY-FIVE OR MORE YEARS OF CREDITABLE SERVICE. A. Section 23-1-65 of the 1976 Code is amended to read: "Section 23-1-65. (A) When making application for appointment, a nonrefundable fee of fifty dollars is required of all state constables appointed pursuant to the provisions of Section 23-1-60. A fee of fifty dollars must be paid with each renewal application. No fees are required of employees of the State or any political subdivision appointed in the line of duty, and no fees are required on initial or renewal applications of law enforcement officers who have retired because of disability or who have retired with twenty-five or more years of creditable service as a law enforcement officer. (B) The fee must be paid to the South Carolina Law Enforcement Division. The division shall remit quarterly these fees to the State Treasurer to be credited to the general fund of the State." B. This section takes effect July 1, 1990. SECTION 26 TO DECLARE THAT THIS STATE IS AN "ECONOMIC PRESENCE" STATE FOR PURPOSES OF THE USE TAX NEXUS AND TO AUTHORIZE THE SOUTH CAROLINA TAX COMMISSION TO ENTER INTO AN AGREEMENT IN COOPERATION WITH OTHER STATES TO PROVIDE A MORATORIUM ON THE REGISTRATION AND TREATMENT OF PRIOR TAX LIABILITIES FOR DIRECT MARKETING COMPANIES FOR PURPOSES OF THE USE TAX. A. Whereas, the General Assembly recognizes the importance of a fair and equitable tax system; and Whereas, the purpose of the South Carolina use tax, enacted in 1951 is to complement the state sales tax; and Whereas, the collection of the South Carolina use tax is for the purpose of ensuring that out-of-state retailers do not have a competitive advantage over South Carolina retailers; and Whereas, statutory and case law requires retailers to have some minimal connection with a state, otherwise known as "nexus", in order for the State to require the out-of-state retailer to collect the use tax; and Whereas, it is important to encourage out-of-state retailers to register to collect the use tax. B. The General Assembly declares that this State, with respect to use tax nexus, is an "economic presence" state whereby any out-of- state retailer who exploits the South Carolina market through mail order sales, television shopping networks and shows, telephone "900" services, and other marketing techniques, must collect and remit the use tax. C. The South Carolina Tax Commission may enter into agreements in cooperation with other states and issue rulings to allow a moratorium period for the purpose of increasing use tax compliance by national direct marketing companies. The agreement may require the states to refrain from issuing tax bills, assessments, audit demands, or document summonses with respect to the collection of use tax for shipments into South Carolina by a nonregistered out- of-state direct marketing company whose interstate activities are limited to typical direct marketing activities. The agreement may require the states to register direct marketing companies for prospective collection of tax. The moratorium does not relieve the in-state purchaser from the liability for use taxes due. D. The authority granted the South Carolina Tax Commission pursuant to this section expires January 1, 1992. SECTION 27 TO AMEND SECTION 35, PART II, ACT 189 OF THE 1989 (THE GENERAL APPROPRIATIONS ACT FOR 1989-90), RELATING TO THE SOUTH CAROLINA MEDICALLY INDIGENT ASSISTANCE ACT, SO AS TO PROVIDE THAT IF FEDERAL REGULATIONS PROHIBIT THE USE OF LICENSED HOSPITAL TAX REVENUES FOR MEDICAID, THE MEDICAID EXPANSION FUND IS SUSPENDED FROM THE EFFECTIVE DATE OF THE REGULATION. Section 35 J, Part II, Act 189 of 1989 is amended by adding a new paragraph to read: "If federal regulations are promulgated which prohibit the use of funds collected pursuant to Section 12-23-810 of the 1976 Code in the Medicaid program, Sections 44-6-155(A)(2) and 12-23-840 of the 1976 Code are suspended from the effective date of the regulations." SECTION 28 TO AMEND SECTION 12-27-1320, AS AMENDED, OF THE 1976 CODE, RELATING TO CONTRACT OBJECTIVES FOR BUSINESSES OWNED AND CONTROLLED BY SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS AND FEMALES SO AS TO PROVIDE THAT THE DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION SHALL MEET THOSE OBJECTIVES THROUGH DIRECT CONTRACTS, TO PROVIDE THAT THE DEPARTMENT ISSUE AN ANNUAL REPORT, AND TO PROVIDE DEVELOPMENTAL PROGRAMS FOR PARTICIPATING FIRMS. A. Whereas, in South Carolina we are indeed grateful for our country's treasured free enterprise system. We know that the foundation and great benefit of our free enterprise system are the opportunity and individual freedom it provides each citizen to pursue the great "American Dream" to his or her fullest potential; and Whereas, our national and state history teaches us that not all citizens have been provided a fair opportunity to fully participate in our treasured economic system. Past discrimination based on race and gender has prevented many citizens from participating, achieving, and developing their fullest potential and talents; and Whereas, leaders of our State recognized this problem over a decade ago and as a result implemented programs and policies including race and gender-neutral efforts and specific set-aside programs in an attempt to eliminate these discriminating barriers; and Whereas, in 1979, the General Assembly created, by joint resolution, the Small Business Development Center Consortium as a nonracially oriented technical assistance entity. Also in 1979, the Joint Legislative Committee on Small Business, created in 1978, reported that firms owned by minority persons "have been historically restricted from full participation in our free enterprise system to a degree disproportionate to other businesses"; and Whereas, in 1981, the State enacted a consolidated procurement code and, pursuant to numerous hearings which took place under the direction of the State Reorganization Commission and the review of the American Bar Association, enacted Section 11-35-5210(1) of the 1976 Code which again confirmed a finding by the General Assembly that discrimination had resulted in a lack of participation by minorities in the state procurement system. In reference to these findings, state procurement officers were directed to initiate certain programs to include and involve minorities in the procurement system; and Whereas, several recent studies by the Office of Small and Minority Business Assistance reveal that a pattern of discrimination against, and minimal participation of, minority and female-owned businesses in the state's procurement system still exists. The data for Fiscal Years 1981-82, 1982-83, and 1983-84 show participation rates for minority-owned firms at less than one percent; and Whereas, the South Carolina Legislative Audit Council found in 1983-84 that minority-owned firms received only a mere .01 percent of the state's contract dollars for goods, services, and building renovations and construction. A public hearing on October 12, 1988, revealed a continuing lack of participation in the awarding of contracts despite a race and gender-specific set-aside program mandated by a proviso in the General Appropriations Act for 1988- 89 (Section 126.25); and Whereas, the state's finding of a pattern of race and gender discrimination over a ten-year period, despite numerous attempts to create more equitable patterns, is evidence that additional legislative action is necessary to cure and resolve this long and historical problem in our State; and Whereas, the purpose of this legislation is to remedy historic patterns of discrimination against minorities and women in the awarding of state contracts. It is intended that these provisions be applied until future findings conclude that the historical barriers to participation of minorities and women have been eliminated. B. Section 12-27-1320 of the 1976 Code, as amended by Section 45B, Part II, Act 189 of 1989, is further amended to read: "Section 12-27-1320. (A) Of total state source highway funds expended in a fiscal year on highway, bridge, and building construction, and building renovation contracts, the Department of Highways and Public Transportation shall ensure that not less than: (1) five percent are expended through direct contracts with estimated values of two-hundred fifty thousand dollars or less with small business concerns owned and controlled by socially and economically disadvantaged ethnic minorities (MBEs); and (2) five percent are expended through direct contracts with estimated values of two-hundred fifty thousand dollars or less with firms owned and controlled by disadvantaged females (WBEs). The two hundred fifty thousand dollars value limits may be raised in the discretion of the department as MBEs/WBEs are able to provide bondability. (B) The department shall certify eligible firms under this section and shall give at least thirty days' notice to certified firms of contracts to be let. The department must take into consideration the location and availability of MBE or WBE firms in the State when designating projects to be set aside. No certified MBE or WBE may participate after June 30, 1999, or nine years from the date of the firm's first contract, whichever is later, if that firm performed at least three million dollars in highway contracts for four consecutive years while certified as a WBE or MBE. Firms performing less than three million dollars in highway contracts for four consecutive years may be recertified for additional five-year periods based upon recertification reviews by the department. (C) To achieve the set-asides set forth in subsection (A) of this section, the department shall advertise a number of highway construction projects at each regularly scheduled highway letting to be bid exclusively by MBEs and WBEs. The total annual value of those projects awarded must equal at least ten percent of total state source highway funds expended in each fiscal year, or otherwise documented as described in subsection (D). Projects must be awarded when the lowest responsive and responsible bidder submits a bid within ten percent of the official engineer's estimate. If the lowest responsive bid exceeds the engineer's estimate by more than ten percent, the department may enter into negotiation with the low bidder making reasonable changes in the plans and specifications as necessary to bring the contract price within the ten percent range. If the low bidder agrees to the changes and the revised contract price, the contract must be awarded to the low bidder at the revised price. If the low bidder can show just cause for his bid exceeding the ten percent range, the department may award the contract without making any changes in the plans and specifications or the contract price. If the department fails to award any advertised project, that project may be readvertised through the normal bid process and must not be readvertised for the purpose of achieving the set-asides. (D) If no MBE or WBE firms certified pursuant to this section are available to perform a contract, the department shall verify and record this fact, and the verification must be preserved in department records. (E) To facilitate implementation of this section, the department may waive bonding requirements for contracts let pursuant to this section with estimated construction costs not exceeding two hundred fifty thousand dollars a contract, and any contract set aside and awarded to any MBE or WBE contractor without bonding shall provide expressly that termination of the contract for default of the contractor renders the contractor ineligible for any further department nonbonded contracts for a minimum period of two years from the date of the notice. The department shall act as bonding company when bonding requirements have been waived. Any claims brought by subcontractors or suppliers in connection with nonbonded projects must be heard by the Department Claims Committee and all legitimate claims must be paid by the department. The committee shall take into account circumstances such as unsettled payments and disputes with the department or other circumstances that are beyond the MBE/WBEs control. Claims resulting in monetary settlements shall render the MBE/WBEs ineligible for any further department nonbonded projects until the MBE/WBE has reimbursed or has made acceptable arrangements to reimburse the department for the amount due as a result of the settlement. (F) In awarding any contract pursuant to this section, preference must be given to an otherwise eligible South Carolina contractor submitting a responsible bid not exceeding an otherwise eligible out-of-state contractor's low bid by two and one-half percent. (G) The department shall establish written guidelines to be used in the selection and design of projects awarded under this section. Those guidelines shall outline the types of projects best suited for this program and other related criteria. (H) When a MBE or WBE receives a contract, the department shall furnish a letter, upon request, stating the dollar value and duration of, and other information about the contract, which may be used by the MBE or WBE in negotiating lines of credit with lending institutions. (I) The department shall issue an annual report listing all contracts awarded pursuant to this section. That report must also include a listing of all contracts and subcontracts awarded pursuant to Section 106(C) of the Federal Surface Transportation Act of 1987 (STAA-1987; P.L. 100-17, Section 106(c)). The listings must be both chronological and by name of participating firms. Entries must include file numbers, locations, and dollar amounts. The report must also contain information relating to cancelled contracts and subcontracts, subcontractor substitutions, and final payments to MBE/WBEs. (J) Any MBE or WBE acting as a prime contractor shall perform at least thirty percent of the work with his own forces. If thirty percent of the work is performed with his own forces, the total amount of the contract is counted toward the MBE/WBE set-asides. If less than thirty percent is performed by the MBE/WBE, then only that portion performed by the MBE/WBE is counted toward the set- asides. (K) The department shall make available technical assistance for MBEs and WBEs for not less than three hundred thousand dollars. Any of these funds awarded to small consulting firms owned and controlled by MBEs or WBEs may count toward the set-asides established in subsection (A) of this section. The selected firms must be South Carolina based and experienced in assisting with the development of minority firms. (L) Technical assistance provided under subsection (K) of this section shall include written and verbal instruction on competitive bidding, management techniques, and general business operations. Firms certified under this section must be represented by a company officer in at least twenty hours of continuing education a year in order to remain certified. The department shall implement a system that will designate a lead engineer to work with MBE/WBEs. This engineer shall work with the office of compliance, the supportive services contractor, and with the department's engineers to provide early technical assistance to MBE/WBEs with contracts in each highway district. The support shall include professional and technical assistance aimed toward meeting the standards, the specifications, the timing, quality, and other requirements of their contracts. The department shall also endeavor to utilize the expertise of established highway, bridge, and building contractors when providing technical and support services. (M) Any contracts awarded through the normal bid process to certified MBEs or WBEs may count toward the set-asides. Subcontracts entered into between prime contractors and certified MBE/WBEs without regard to these provisions may be counted toward the set-asides outlined in subsection (A) of this section if these subcontracts are verified through the department records. (N) If any part or provision of this section is declared to be unconstitutional or unenforceable by a court of competent jurisdiction of this State, the court's decision, nevertheless, has no effect on the constitutionality, validity, and enforceability of the other parts and provisions of this section which are considered severable. (O) Within one hundred twenty days of the effective date of this section the department shall promulgate and implement regulations to administer the provisions of this section." C. This section takes effect July 1, 1990. SECTION 29 Deleted SECTION 30 Deleted *SECTION 31 TO AMEND SECTION 59-6-20 OF THE 1976 CODE, RELATING TO THE PUBLIC ACCOUNTABILITY DIVISION WITHIN THE DEPARTMENT OF EDUCATION, SO AS TO CHANGE THE ELIMINATION DATE OF THE DIVISION. The first paragraph of Section 59-6-20 of the 1976 Code is amended to read: "The State Board of Education and State Superintendent of Education must establish within the State Department of Education a special unit at the division level called the Public Accountability Division. This special unit must be eliminated on July 1, 1992. The unit head shall hold a position comparable to a deputy superintendent and must be under the direct supervision of and shall report to the State Superintendent of Education."* Indicates those vetoes sustained by the General Assembly June 19, 1990. (Provisions printed in italic boldface were vetoed by the Governor June 13, 1990.)SECTION 32 TO AMEND SECTION 59-18-20 OF THE 1976 CODE, RELATING TO THE COMPETITIVE SCHOOL INNOVATION GRANTS PROGRAM, SO AS TO CLARIFY THE GRANTS TO BE FUNDED. The first paragraph of Section 59-18-20(B) of the 1976 Code is amended to read: "To encourage public schools to implement innovative and comprehensive approaches for improving student development, performance, and attendance, a competitive school innovation grants program is also established. Funds for the competitive school innovation grants program are as provided by the General Assembly in the annual general appropriations act. Beginning with the 1991-92 school year, innovative programs are those which seek to fundamentally redefine how schools operate, undertake new approaches to what and how students learn, apply different teaching methods, or create appropriate relationships between schools and other social service agencies. The State Board of Education, acting through the State Department of Education, must provide by regulation for this competitive grants program. All schools are eligible to apply for the grants." SECTION 33 TO AMEND SECTION 56-5-2940, AS AMENDED, OF THE 1976 CODE, RELATING TO THE PENALTIES FOR DRIVING UNDER THE INFLUENCE OF ALCOHOL OR DRUGS, SO AS TO PROVIDE THAT THE FIRST TWO HUNDRED FIFTY DOLLARS OF THE MANDATORY FINES IMPOSED FOR SECOND AND THIRD OFFENSE CONVICTION OF DRIVING UNDER THE INFLUENCE MUST BE REMITTED TO THE VICTIMS' COMPENSATION FUND. A. The first two unlettered paragraphs of Section 56-5-2940 of the 1976 Code, as last amended by Act 532 of 1988, are further amended to read: "A person violating a provision of Section 56-5-2930, upon conviction, entry of a plea of guilty or of nolo contendere or forfeiture of bail, must be punished in accordance with the following: (1) By a fine of two hundred dollars or imprisonment for not less than forty-eight hours nor more than thirty days, for the first offense. However, in lieu of the forty-eight hour minimum imprisonment the court may provide for forty-eight hours of public service employment. The minimum forty-eight hour imprisonment or public service employment must be served at a time when the person is off from work and does not interfere with his regular employment under terms and conditions as the court considers proper. However, the court may not compel an offender to perform public service employment in lieu of the minimum sentence. (2) By a fine of not less than two thousand dollars nor more than five thousand dollars and imprisonment for not less than forty-eight hours nor more than one year for the second offense. However, the fine imposed by this item may not be suspended in an amount less than one thousand dollars. In lieu of service of imprisonment the court may require that the individual complete an appropriate term of public service employment of not less than ten days upon terms and conditions the court considers proper. (3) By a fine of not less than three thousand, five hundred dollars nor more than six thousand dollars and imprisonment for not less than sixty days nor more than three years, for the third offense. (4) Imprisonment for not less than one year nor more than five years for a fourth offense or subsequent offense. No part of the minimum sentences provided in this section must be suspended. Of the minimum fines imposed in items (2) and (3) of this section, the first two hundred fifty dollars must be remitted to the Victims' Compensation Fund. The court may provide in lieu of service other sentences provided in this section. For a third offense or any subsequent offense or for a violation of Section 56-5-2945 as it relates to great bodily injury the service of the minimum sentence is mandatory. However, the judge may provide for the sentence to be served upon terms and conditions as he considers proper including, but not limited to, weekend service or nighttime service in any fashion he considers necessary." B. This section is effective for fines imposed for convictions occurring after June 30, 1990. SECTION 34 TO AMEND SECTION 59, PART II, ACT 189 OF 1989, THE GENERAL APPROPRIATIONS ACT FOR 1989-90, RELATING TO THE AUTHORITY OF THE SOUTH CAROLINA COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT TO EXPEND A MAXIMUM OF ONE MILLION DOLLARS TO STUDY COMPUTER INFRASTRUCTURE NEEDS OF STATE GOVERNMENT, SO AS TO AUTHORIZE THE COUNCIL TO UNDERTAKE ADDITIONAL STUDIES WITH THE PREVIOUSLY ALLOCATED FUNDING. Section 59, Part II of Act 189 of 1989 is amended to read: "From the funds set aside pursuant to Section 12-27-1270 of the 1976 Code, the South Carolina Coordinating Council for Economic Development may spend an amount not exceeding one million dollars in Fiscal Year 1989-90 for one or more of the following activities: (1) a study to determine the computer infrastructure needs of state government, (2) additional money for the Department of Parks, Recreation and Tourism to advertise nationally and promote the South Carolina tourism industry; (3) a contract with the State Development Board to study interrelations of the Geographical Information Systems overlay project and the state computer infrastructure study not to exceed two hundred thousand dollars; and (4) assist the University of South Carolina, Clemson, and sixteen technical colleges with the Southeast Manufacturing Center. Any unexpended funds at the end of Fiscal Year 1989-90 may be carried forward and expended for the same purpose in Fiscal Year 1990-91." SECTION 34A Deleted *SECTION 35 TO AMEND SECTION 24-3-410 OF THE 1976 CODE, RELATING TO THE PROHIBITION ON THE SALE OF PRODUCTS MANUFACTURED OR PRODUCED BY PRISON LABOR AND THE EXCEPTIONS TO THE PROHIBITION, SO AS TO EXEMPT PRODUCTS PRODUCED BY INMATES OF THE SOUTH CAROLINA DEPARTMENT OF CORRECTIONS EMPLOYED IN A FEDERALLY CERTIFIED PRIVATE SECTOR PRISON INDUSTRIES PROGRAM IF THE WORKERS PARTICIPATE VOLUNTARILY, RECEIVE COMPARABLE WAGES, AND THE WORK PERFORMED DOES NOT DISPLACE EMPLOYED WORKERS. Section 24-3-410 of the 1976 Code is amended to read: "Section 24-3-410. (A) It is unlawful to sell or offer for sale on the open market of this State any articles or products manufactured or produced wholly or in part by convicts or prisoners in this or any other state. (B) The provisions of this section do not apply to: (1) articles manufactured or produced by persons on parole or probation; (2) the production of cattle, cotton, turkish tobacco, soybeans, and wheat; (3) products sold by the Department of Corrections made by inmates in the hobbycraft program; (4) articles or products sold to nonprofit corporations incorporated under the provisions of Article 1, Chapter 31 of Title 33, or to organizations operating in this State which have been granted an exemption pursuant to Section 501(c) of the Internal Revenue Code of 1986; (5) road and street designation signs sold to private developers; (6) articles or products made in an adult work activity center established by the Department of Corrections through contracts with private sector businesses which provide work and vocational training opportunities for the physically handicapped, mentally retarded, or aged inmates where the compensation is paid by the private sector business to the prisoner on a piece completed basis; (7) products sold intrastate or interstate produced by inmates of the Department of Corrections employed in a federally certified private sector/prison industries program if the inmate workers participate voluntarily, receive comparable wages, and the work does not displace employed workers. For purposes of this item (7), the term 'products' does not include goods and Standard Industrial Classification Code 27. (C) Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not less than two hundred dollars, nor more than five thousand dollars, or by imprisonment in jail not less than three months nor more than one year, or both. Each sale or offer for sale constitutes a separate offense under this section. Proceeds of the sale of all agricultural products, when produced by an instrumentality under control of the State Board of Corrections, must be applied as provided in Section 24-1-250."* Indicates those vetoes sustained by the General Assembly June 19, 1990. (Provisions printed in italic boldface were vetoed by the Governor June 13, 1990.)SECTION 36 Deleted SECTION 37 Deleted SECTION 38 TO AMEND SECTION 12-54-55 OF THE 1976 CODE, RELATING TO INTEREST ON UNDERPAYMENTS OF ESTIMATED STATE INCOME TAXES, SO AS TO PROVIDE THAT NO INTEREST OR PENALTY IS DUE FOR UNDERPAYMENTS ATTRIBUTABLE TO PERSONAL SERVICE INCOME EARNED IN ANOTHER STATE ON WHICH WAS WITHHELD INCOME TAX DUE THAT STATE. A. Section 12-54-55(1) of the 1976 Code is amended to read: "(1) In the case of an individual taxpayer, estate, or trust in the same manner as prescribed by the provisions of Internal Revenue Code Section 6654, and applicable regulations, except that under Internal Revenue Code Section 6654(e)(1) one hundred dollars applies rather than five hundred dollars. No interest or penalty is due under this item for underpayments attributable to personal service income earned in another state on which was withheld income tax due the other state." B. This section is effective for taxable years beginning after 1989. SECTION 39 Deleted SECTION 40 Deleted SECTION 41 Deleted SECTION 42 Deleted SECTION 43 TO AMEND SECTION 8-21-310, AS AMENDED, OF THE 1976 CODE, RELATING TO FEES PAID TO CLERKS OF COURT AND REGISTERS OF MESNE CONVEYANCES, SO AS TO INCREASE THE FILING FEE FOR A FIRST COMPLAINT OR PETITION IN A CIVIL ACTION OR PROCEEDING IN A COURT OF RECORD FROM THIRTY-FIVE TO FIFTY DOLLARS, AND TO PROVIDE THAT THE INCREASE IN THIS FILING FEE MUST BE TRANSMITTED TO THE STATE FOR DEPOSIT TO THE CREDIT OF THE GENERAL FUND OF THE STATE. A. Section 8-21-310(11)(a) of the 1976 Code, as last amended by an act of 1990 bearing ratification number 652, is further amended to read: "(11)(a) For filing first complaint or petition, including application for a remedial and prerogative writ and bond on attachment or other bond, in a civil action or proceeding, in a court of record, fifty dollars. There is no further fee for filing an amended or supplemental complaint or petition nor for filing any other paper in the same action or proceeding. An original application for postconviction relief may be filed without fee upon permission of the court to which the application is addressed. There is no further fee for entering and filing any verdict, judgment, final decree, or order of dismissal, and enrolling a judgment thereon, for signing, sealing, and issuance of execution, or for entering satisfaction or partial satisfaction on a judgment. Of the fifty-dollar fee thirty-five dollars is subject to the disposition provision of Section 20-7-1510 and the remaining fifteen dollars must be remitted to the State and deposited to the credit of the general fund of the State;". B. This section takes effect July 1, 1990. SECTION 44 Deleted SECTION 45 TO AMEND SECTION 44-7-84 OF THE 1976 CODE, RELATING TO THE MAXIMUM NUMBER OF MEDICAID PATIENT DAYS FOR MEDICAID NURSING HOME PERMITS, SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO ASSESS EACH NURSING HOME AN ANNUAL FEE FOR THE ISSUANCE AND ADMINISTRATION OF THE MEDICAID DAYS PERMIT PROGRAM AND PROVIDE FOR DEPOSIT OF THE FEE, EXEMPTIONS, REPORTING REQUIREMENTS, AND EXPIRATION OF THE FEE. Section 44-7-84 of the 1976 Code, as added by Act 184 of 1987, is amended by adding: "(D) The department shall assess each nursing home an annual administrative fee of two dollars for each patient day for the issuance and administration of the Medicaid days permit program. The funds generated from this fee must be remitted to the State Treasurer for deposit into the general fund. Licensed nursing home beds operated by the Department of Mental Health and the Department of Mental Retardation are exempt from the provisions of this paragraph. Within ninety days from the collection, but not later than January first of each year, the department shall submit a report to the House of Representatives Ways and Means Committee and to the Senate Finance Committee detailing the fees collected by the facility. The General Assembly annually shall review the assessment and collection of the fee. The administrative assessment as provided in this section expires June 30, 1991, unless reenacted by the General Assembly." SECTION 46 TO AMEND ACT 197 OF 1989, RELATING TO AMENDMENTS TO VARIOUS WORKERS' COMPENSATION STATUTES, SO AS TO DELAY UNTIL JULY 1, 1991, THE EFFECTIVE DATE OF THE AMENDMENT TO SECTION 42-17-50 OF THE 1976 CODE REDUCING THE APPLICATION FEES FOR REVIEW AND REHEARINGS. Section 3 of Act 197 of 1989 is amended to read: "Section 3. This act takes effect upon approval by the Governor, with the exception that the amendments to Section 42-17-50, as contained in Section 2, take effect July 1, 1991." SECTION 47 Deleted SECTION 48 TO AMEND SECTION 56-5-4160 OF THE 1976 CODE, AS AMENDED, RELATING TO THE WEIGHING OF VEHICLES AND LOADS BY THE DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION AND PENALTIES, SO AS TO PROVIDE FOR SEPARATE CRIMINAL OFFENSES AND PENALTIES FOR AXLE WEIGHT VIOLATIONS AND EXCESS GROSS WEIGHT VIOLATIONS, THAT MAGISTRATES HAVE JURISDICTION OF VIOLATIONS OF THIS SECTION, AND FOR A SEPARATE UNIFORM CITATION TO BE USED BY THE SIZE AND WEIGHT DIVISION FOR VIOLATIONS. A. Section 56-5-4160 of the 1976 Code, as last amended by Act 167 of 1989, is further amended to read: "Section 56-5-4160. (A) An officer or agent of the department having reason to believe that the weight of a vehicle and load is unlawful may require the driver to stop and submit to a weighing of the vehicle and load either by means of portable or stationary scales and may require that the vehicle be driven to the nearest public scales. Whenever an officer upon weighing a vehicle and load determines that the weight is unlawful, he may require the driver to stop the vehicle in a suitable place and remain standing until the portion of the load necessary to reduce the gross weight of the vehicle to the limits permitted under this chapter is removed. All material so unloaded must be cared for by the owner or operator of the vehicle at his own risk. (B) A person who operates a vehicle on a public highway whose axle weight or tandem axle weight is in excess of the limits imposed by Section 56-5-4130 or 56-5-4140 is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days, or both. (C) A person who operates a vehicle found to exceed the excess gross weight limitations imposed by Section 56-5-4130 or 56-5-4140 is guilty of a misdemeanor and, upon conviction, shall pay to the department a fine based on the following scale: POUNDS OF EXCESS AMOUNT OF FINE WEIGHT IN DOLLARS (1) 500 - 1500 lbs.: $ 25.00 (2) 1501 - 2500 lbs.: 45.00 (3) 2501 - 3500 lbs.: 60.00 (4) 3501 - 4250 lbs.: 135.00 (5) 4251 - 5250 lbs.: 180.00 (6) 5251 - 6250 lbs.: 300.00 (7) 6251 - 7250 lbs.: 460.00 (8) 7251 - 8250 lbs.: 600.00 (9) 8251 - 10250 lbs.: 700.00 (10) 10251 - lbs. and over: 800.00 If the operator of the vehicle, upon conviction, fails to remit the fine imposed by this subsection to the department, the owner of the vehicle is responsible for remitting the fine. The court is prohibited from suspending any portion of this fine.